Petroleum Underground Storage Tank Program -------------------------------------------------------------------------------- October 10 2006  Non-Leaking Residential Oil Tanks Effective August 4, 2006, the UST Fund provides loans and grants to eligible applicants to help finance project costs for the closure and replacement of a non-leaking residential underground storage tank (''UST). Listed below are frequently asked questions and responses. Am I an eligible applicant? * Homeowners with non-leaking underground home heating oil tanks (applicant must own property at time application is made with NJEDA) are eligible for closure and replacement of tank. * Homeowners with leaking underground home heating oil tanks are also eligible for closure, upgrade and/or remediation, but need to make application first with the New Jersey Department of Environmental Protection (''NJDEP'') at www.nj.gov/dep/srp. Applicants must own their property at the time of application with the DEP. If I am an eligible applicant, what should I do next? For homeowners with non-leaking oil tanks, it is best to verify that the contractor closing and/or replacing your UST is certified by the NJDEP . A list can be found on the NJEDA website, www.njeda.com. If the contractor has been certified, please complete the application, financial assistance agreement, and disbursement form, also found on NJEDA's website. Submit to the NJEDA along with the itemized list of attachments. It is advisable to submit the application once the work has been completed. The closure or the closure and replacement of a non-leaking residential UST must have been done after August 4, 2006 in order to be eligible for a grant or loan. What are the limits of funding available from the UST Fund? Grants and loans of up to $1,200 may be awarded for the closure of non-leaking underground home heating oil tanks. Grants and loans of up to $3,000 may be awarded for the closure and replacement of non-leaking underground home heating oil tanks. Tanks can be replaced with an above ground storage tank whenever possible or an underground storage tank if an above ground storage tank is not feasible. The applicant is responsible for costs above these limits to close or close and replace a non-leaking underground home heating oil tank. What will the NJEDA require to determine a loan and/or grant award? In order to determine the type of award, the following items will need to be included with the application: (1) Last 3 years Federal Income tax Returns of the applicant (2) Personal Financial Statement of the applicant (3) Non-Refundable $250 Application Fee made payable to the NJEDA How can I qualify for a grant award? In order to qualify for a conditional hardship grant, homeowner applicants must meet the following criteria: (1) A taxable income of less than $250,000 (2) A personal net worth, exclusive of applicant's primary residence and pension (401K, IRA's), of less than $500,000 (3) A determination of financial hardship which will be based on whether an applicant can reasonably be expected to repay if the funding were to be awarded as a loan **A grant worksheet to help applicants determine grant eligibility can be found on the NJEDA's website. What happens if I do not qualify for a grant award? If a grant cannot be awarded, the application will be forwarded to the Credit Underwriting Division of the NJEDA to be processed for a loan.. Will there be a lien placed on my property? If a grant cannot be awarded, the application will be forwarded to the Credit Underwriting Division of the NJEDA to be processed for a loan.. Will there be a lien placed on my property? If a loan is awarded, a lien will be placed on the residence in the amount of the entire loan and must be repaid immediately upon sale. What happens next? Once the application for funding (grant or loan) is determined to be eligible by the NJEDA, the application is recommended for approval. If a grant is recommended, Program Services staff can request internal approval, which approval is typically considered within 4 weeks of review of the application. If a loan is recommended, the application will be presented at NJEDA's Board meeting for approval. The Board typically meets the 2nd Tuesday of each month at 10:00am at the NJEDA at 36 West State Street, Trenton, NJ. What type of closing occurs for the grant and loan awards? The Lending Services Division of the NJEDA is responsible for closing all grants and loans for these programs. Once a grant application receives approval, a Financial Assistance Agreement (''FAA") will be signed by the NJEDA and forwarded to the applicant for execution. The FAA is included in the original application package. Once a loan application receives approval, a commitment letter will be forwarded to the applicant, which outlines the terms of the loan and requires a signature. The commitment letter is then returned to the NJEDA with the requested commitment fee. Upon receipt of the signed commitment letter, a list will be forwarded to applicant of items required prior to closing and once completed, a closing date will scheduled. A closing fee will be required at that time. What is the amount of the fees on loan awards? In addition to the $250 non-refundable application fee submitted with the application package, the NJEDA charges a non-refundable $500 commitment fee or 1/2% of the loan (whichever is greater). The NJEDA charges a closing fee of $500 or 1/2% of the loan (whichever is greater). When should I expect to receive a disbursement? The Credit Compliance Division of the NJEDA is responsible for disbursements and post closing activities for these programs. The application package will include a disbursement form. If the disbursement form is executed by the applicant and returned with paid invoice(s) and cancelled check(s), the disbursement will be released in the total amount of such invoices and checks, capped at the amount of the award, when the grant or loan is closed. **If you should have any further questions, please contact the NJEDA Customer Support Administrator at 1-609-777-4898.