NR 193.86 History
History: CR 19-078: cr.
Register May 2020 No. 773, eff. 6-1-20; correction in (1), (3) made under s.
35.17, Stats.,
Register May 2020 No. 773.
NR 193.87(1)(1)
The department may award a grant under this subchapter for up to 75% of the total project costs, but the award amount may not exceed the maximum grant award amount per fee simple land or easement acquisition subprogram.
NR 193.87(2)(a)
(a) The grantee shall order and submit to the department an appraisal for fee simple or conservation easement projects, both for parcels to be purchased and parcels that will be used as grantee acquisition match. The grantee shall order appraisals in accordance with department guidelines, and the appraisals shall be subject to department review and approval. An appraisal ordered by the seller is unacceptable.
NR 193.87 Note
Note: The department's appraisal guidelines are available from the DNR, Bureau of Community Financial Assistance.
NR 193.87(2)(b)
(b) The department may order a second appraisal if the property presents a difficult appraisal problem, if the first appraisal is unacceptable under department established criteria, or if the value of the parcel exceeds $350,000. If only one appraisal is required for fee simple or easement land acquisition, the cost of the appraisal is grant eligible. If more than one appraisal is required, the cost of the first appraisal is entirely the responsibility of the applicants and is grant eligible; the cost of the second appraisal is entirely the responsibility of the department.
NR 193.87 Note
Note: The department encourages a grantee considering applying for grant funding for fee simple or conservation easement acquisition to contact the department before ordering an appraisal. Instructions provided to the appraiser will impact the scope and quality of the appraisal and, therefore, impact the grant award amount.
NR 193.87(3)
(3) In addition to items listed in s.
NR 193.07, property donated to the grantee or purchased by the grantee without state funds may be used as a grantee acquisition match. All of the following conditions apply to donated property used as grantee acquisition match:
NR 193.87(3)(a)
(a) The purchased or donated match property must also be eligible for grant funding under this subchapter.
NR 193.87(3)(b)
(b) With approval of the department, a grantee may use a portion of the accepted appraised value of a donated property as part or all of the grantee acquisition match of the acquisition cost of the subject property. The value of contribution of property shall be determined by appraisal as specified in the department's appraisal guidelines.
NR 193.87(3)(c)
(c) The amount that may be used for grantee acquisition match shall equal the fair market value as determined by the department for an accepted appraisal. The grant payment may not exceed the amount of cash needed for the purchase. The value of the donated property not used as a grantee acquisition match in the original project may not be used by the grantee as a grantee acquisition match on any subsequent application under this chapter.
NR 193.87 Note
Example: Presume an applicant applies to protect a lake with a fee simple land acquisition funded with a land acquisition grant. Presume the property has a value of $100,000 as determined by a department-approved appraisal. The Surface Water Grant Program requires a 25% grantee acquisition match, bringing the maximum grant award to $75,000, with $25,000 provided by the grantee. Presume further that the applicant will use a donated property as part of the grantee acquisition match. Presume the department-approved value of the donated property is $70,000 and that miscellaneous eligible acquisition costs (including closing costs, attorney's fees and appraisal costs) amount to $10,000. The maximum grant award for the proposed acquisition would be calculated as $135,000. However, the applicant cannot receive a grant that exceeds amount of actual cash outlay. In this example, the actual cash outlay is the subject property value plus the eligible acquisition costs, so the maximum grant award is capped at $110,000.
NR 193.87 Note
($100,000 + $10,000 + $70,000) x 75% = $135,000
Maximum grant award capped at $110,000
NR 193.87(3)(d)
(d) Grantee acquisition match property shall be encumbered in perpetuity by a grant agreement and subject to the same conditions and restrictions that would encumber fee simple or conservation easement land acquired with a grant awarded under this chapter.
NR 193.87 History
History: CR 19-078: cr.
Register May 2020 No. 773, eff. 6-1-20; correction in (2) (a), (3) (c) made under s.
35.17, Stats.,
Register May 2020 No. 773.
NR 193.88(1)(1)
The department shall use a grant agreement to award any funds under this subchapter. A grant agreement is not binding until signed by the department and the applicant and returned to the department by the specified deadline. Grant funds shall not be disbursed until the signed grant agreement is returned to the department. A grant application approved for funding by the department becomes part of the grant agreement by reference.
NR 193.88(2)
(2) A grant awarded under this subchapter may be terminated by the department for violation of any term or condition of the grant agreement. If the grant is terminated, any interest in or title to the property acquired with a grant under this chapter or property used as a grantee match to a grant awarded under this chapter shall vest in the state.
NR 193.88(3)
(3) When a grantee is making either a fee simple or conservation easement land acquisition purchase, the department may distribute 100% of the approved land value at escrow closing, up to the entire grant award amount, to a non-interest
-bearing escrow account, subject to a department-approved title insurance commitment, to be released upon completion of an insured closing and conveyance of the property to the grantee. If the closing has not occurred within 15 days from the date when funds were distributed to the escrow account, the escrow agent shall return the grant funds to the department.
NR 193.88 History
History: CR 19-078: cr.
Register May 2020 No. 773, eff. 6-1-20; correction in (3) made under s.
35.17, Stats.,
Register May 2020 No. 773; correction in (3) made under s.
35.17, Stats.,
Register May 2020 No. 773.
NR 193.89
NR 193.89
Grant agreements for acquisition projects. NR 193.89(1)(1)
In addition to any grant agreement conditions identified under s.
NR 193.13, all of the following essential conditions shall be added to a grant agreement awarded under this subchapter:
NR 193.89(1)(a)
(a) The grantee may not convert the property or allow it to be converted to any use other than that specified in the grant agreement without the prior written approval of the department.
NR 193.89(1)(b)
(b) The grantee may not convey any interest in the property to a third party nor allow any leases, permits, or encumbrances without the prior written approval of the department. The department may take action necessary to avoid the placement of liens, judgments or encumbrances against the property.
NR 193.89(1)(c)
(c) When a property transfer from the grantee to a third party is approved by the department, the party to whom the property is transferred shall be an eligible applicant under this chapter and shall agree to assume the responsibilities and limitations of the terms and conditions of the grant agreement.
NR 193.89(1)(d)
(d) The grantee must make property tax payments on time and keep taxes current unless property taxes are not required.
NR 193.89(1)(e)
(e) The grantee may not close a property acquired with a grant awarded under this chapter to the public unless the department determines, and documents in writing, that closure is necessary to protect species of plants, wild animals, or other natural features.
NR 193.89(1)(f)
(f) The grantee shall manage the property in accordance with the land management plan approved by the department
.
NR 193.89(2)
(2) The grant agreement shall recognize the state's interest in the property acquired by the grantee, for both the subject property and donated match property when applicable, and ensure that the grantee provides adequate land management and maintenance, or, in the case of easements, monitors and enforces the conditions of the easement, in accordance with provisions contained in the grant agreement and in a land management plan approved by the department. The grantee shall declare the state's interest in the property on the warranty deed or other appropriate instrument of conveyance recorded in the appropriate county register of deeds office, using language provided by the department. The grant agreement shall be recorded in the office of the register of deeds in the appropriate county.
NR 193.89(3)
(3) All obligations, terms, conditions and restrictions imposed by the grant agreement shall be deemed to be covenants and restrictions running with the property and shall be effective limitations on the use of the property from the date of recording of the grant agreement and shall bind the grantee and all successors and assigns in perpetuity.
NR 193.89(4)
(4) The department may include additional conditions and restrictions in the grant agreement.
NR 193.89 History
History: CR 19-078: cr.
Register May 2020 No. 773, eff. 6-1-20.
NR 193.90
NR 193.90
Conversions. If a grantee converts property to an inconsistent use not approved by the department, the grantee shall return the property to the use specified in the grant agreement within 6 months of written notification of the inconsistent use by the department or the grantee shall replace the property with a different property that is approved by the department. The department's approval of replacement property shall include consideration of at least equal value, acreage, and benefit consistent with the Surface Water Grant Program for which funding was originally approved.
NR 193.90 History
History: CR 19-078: cr.
Register May 2020 No. 773, eff.
6-1-20; correction made under s. 35.17, Stats., Register May 2020 No. 773.
