[HISTORY: Adopted by the Mayor and Council of the Borough of Swedesboro 7-5-2016 by 10-2016[1]; amended in its entirety 8-1-2022 by Ord. No. 8-2022. Subsequent amendments noted where applicable.]
[1]
Editor's Note: This ordinance also repealed former Ch. 239, Property, Abandoned, Vacant or Foreclosed, adopted 11-3-2014 by Ord. No. 10-2014.
A. 
The purpose of this chapter is to establish a program for identifying and registering foreclosure properties; to establish the responsibilities of responsible parties of foreclosure properties, whether occupied or vacant and abandoned; to ensure that foreclosure properties are maintained in compliance with applicable Borough, county, state and federal codes. It is the municipality's further intent to participate in the county-wide registration program established by Gloucester County as a mechanism to protect neighborhoods from becoming blighted due to the lack of adequate maintenance and security of foreclosure properties.
B. 
The Borough Council finds, determines and declares that buildings and property which remain vacant and unoccupied for any appreciable period of time become a harborage for rodents, an invitation for illegal occupancy and for illegal activities, as well as a fire hazard, and that unkempt grounds surrounding the property invite dumping and rubbish thereon, that such buildings become dilapidated, contribute to commercial and residential blight, depress market values of surrounding property, require additional government services, endanger the public safety and health, and generally remain detrimental to the public good. Unsupervised vacant/abandoned or foreclosed properties have a negative impact on surrounding properties and neighborhoods. Responsible parties of such structures and property should be held accountable for the physical condition of the property.
C. 
This chapter establishes responsibilities of responsible parties of foreclosured properties and structures and provides for administration and enforcement of standards related to such property and structures. This chapter incorporates the International Property Maintenance Code and all applicable federal, state and local building and fire codes. This chapter shall apply to all foreclosure property and/or structure within the Borough of Swedesboro.
D. 
It is in the public interest for the Borough to establish minimum standards of accountability on the responsible parties of foreclosure properties in order to protect the health, safety and welfare of the residents of the Borough.
E. 
It is in the public interest for the Borough to impose a reasonable administrative fee in conjunction with registration of foreclosure properties in light of the disproportionate costs imposed on the Borough by the presence of these properties.
For the purposes of this chapter and unless otherwise expressly stated, the following words and phrases are defined as follows:
ABANDONED REAL PROPERTY
Any real property located in the municipality, whether vacant or occupied, complaint for foreclosure, lis pendens or other filing, filed against it by the lender holding a mortgage on the property, is subject to an ongoing foreclosure action by the lender, or has been transferred to the lender under a deed in lieu of foreclosure. The designation of a property as abandoned shall remain in place until such time as the property is sold or transferred to a new owner in an arm's-length transaction, the foreclosure action has been dismissed, and/or lis pendens rescinded.
ACCESSIBLE PROPERTY/ STRUCTURE
A property that is accessible through a compromised/breached gate, fence, wall, etc., or a structure that is unsecured in such a way as to allow easy access to the interior space by unauthorized persons.
ANNUAL REGISTRATION
Twelve months from the date of the first action that requires registration, as determined by the Borough, or its designee, and every subsequent 12 months the property is registrable. The date of the initial registration may be different than the date of the first action that required registration.
APPLICABLE CODES
Codes, including, but not limited to, the municipality's zoning code and General code, International Property Maintenance code, and the New Jersey Building Code.
BLIGHTED PROPERTY
A. 
Properties that have broken or severely damaged windows, doors, wall, and/or roofs which create hazardous conditions and/or encourage trespassing; or
B. 
Properties cited for a public nuisance; or
C. 
Properties that endanger the public's health, safety, or welfare because the properties or the improvements thereon are dilapidated, deteriorated, or violate minimum health and safety standards, or lack maintenance per applicable codes.
BORROWER
An owner of property subject to a mortgage, who grants a lien or equitable interest in property as security for the payment of a debt.
BUILDING
Structure with a roof supported by columns or walls to serve as shelter or enclosure.
ENFORCEMENT OFFICER
Any law enforcement officer, building official, zoning officer, code enforcement officer, fire or building inspector, or other person authorized by the municipality to enforce the applicable codes.
EVIDENCE OF VACANT AND ABANDONED PROPERTY
As used in this chapter, means the presence or finding of at least two of the following conditions concerning the real property: overgrown and/or dead vegetation; past due utility notices and/or disconnected utilities; accumulation of trash junk or debris; abandoned vehicles auto parts or materials; the absence of furnishings and/or personal items consistent with habitation or occupancy; the presence of an unsanitary, stagnant swimming pool; the accumulation of newspapers, circulars, flyers and/or mail, or statements by neighbors, passersby, delivery agents or government agents; a written statement by a mortgagor expressing the clear intent of all mortgagors to abandon the property; the property is occupied by an unauthorized person; the property is occupied without a valid, unexpired certificate of occupancy or other written authorization for occupancy as may be required by applicable laws; the presence of boards over doors, windows or other openings in violation of applicable code; or any other reasonable indicia of abandonment.
FORECLOSURE or FORECLOSURE ACTION
The legal process by which a mortgagee terminates a mortgagor's interest in real property either to obtain legal and equitable title to the real property pledged as security for a debt or to force a sale of said property to satisfy a debt. For purposes of this chapter, this process begins upon the service of a summons and complaint on the mortgagor or any interested party. For purposes of this chapter, the process is not concluded until the property is sold to a bona fide purchaser not related to the mortgagee in an arm's-length transaction whether by Sheriff's sale, private sale following a Sheriff's sale, or private sale following the vesting of title in the mortgagee pursuant to a judgment.
LENDER
A person, or entity holding a mortgage on a property.
MORTGAGE
A recorded lien or interest in real property to secure payment of a loan.
MORTGAGEE
The creditor, including, but not limited to, trustees; mortgage servicing companies; lenders in a mortgage agreement; any agent, servant, or employee of the creditor; any successor in interest; or any assignee of the creditor's rights, interests or obligations under the mortgage agreement; or any other person or entity with the legal right to foreclose on the real property, excluding governmental entities as assignee or owner of record.
POSSESSORY LENDER
A person, or entity that has foreclosed upon a mortgage on a property but may not have legal or equitable title.
PROPERTY MANAGEMENT COMPANY
A local property manager, property maintenance company or similar entity responsible for the maintenance of foreclosure real property or registerable real property.
REAL PROPERTY
Any residential or commercial land and/or buildings, leasehold improvements and anything affixed to the land, or portion thereof identified by a property parcel identification number, located in the Borough limits.
SAFETY AND MAINTENANCE INSPECTION
A visual inspection to check the minimum requirements as set forth in the currently applicable International Property Maintenance Code for sanitary maintenance, life safety, other obvious hazards and code violations. Such inspections will be done in accordance with a checklist maintained by the Borough.
STRUCTURE
Anything constructed or erected the use of which requires location on or attachment to the ground and includes buildings.
VACANT
Any parcel of land that contains any building or structure that is not lawfully occupied.
These sections shall be considered cumulative and not superseding or subject to any other law or provision for same, but rather shall be an additional remedy available to the municipality above and beyond any other state, county or local provisions for same.
Pursuant to the provisions of this chapter, the municipality or designee shall participate in the county-wide registration program established by Gloucester County which catalogs each foreclosure property within the municipality, containing the information required by this chapter.
A. 
Registration of foreclosure real property.
(1) 
Any mortgagee that holds a mortgage on real property located with the municipality of Swedesboro Borough shall perform an inspection of the property to determine vacancy or occupancy, upon default by the mortgagor, as evidenced by a foreclosure filing. The mortgagee shall within 10 days of the inspection, register the property with the Code Enforcement Department, or designee, on forms or website access provided by the municipality, and indicate whether the property is vacant or occupied. A separate registration is required for each property, whether it is found to be vacant or occupied.
(2) 
If the property is occupied but remains in foreclosure, it shall be inspected by the mortgagee or his designee monthly until 1) the mortgagor or other party remedies the foreclosure, or 2) it is found to be vacant or shows evidence of vacancy at which time it is deemed abandoned, and the mortgagee shall, within 10 days of that inspection, update the registration to a vacancy status on forms provided by the municipality.
(3) 
Registration pursuant to this section shall contain the name of the mortgagee and the server, the direct mailing address of the mortgagee and the server, a direct contact name and telephone number for both parties, facsimile number and email address for both parties, the folio or tax number, and the name and twenty-four-hour contact telephone number of the property management company responsible for the security and maintenance of the property.
(4) 
If the mortgagee is located outside of New Jersey, it must provide the full name, mailing address, and direct-dial telephone number of an in-state representative or agent for the mortgagee.
(5) 
A nonrefundable annual registration fee in the amount of $500, per property, shall accompany the registration form or website registration.
(6) 
If the foreclosing or foreclosed property is not registered, or the registration fee is not paid within 30 days of when the registration or renewal is required pursuant to this section, a late fee equivalent to 10% of the annual registration fee shall be charged for every thirty-day-period, or portion thereof, the property is not registered and shall be due and payable with the registration.
(7) 
This section shall also apply to properties that have been the subject of a foreclosure sale where the title was transferred to the beneficiary of a mortgage in the foreclosure and any properties transferred under a deed in lieu of foreclosure/sale.
(8) 
Properties subject to this section shall remain under the annual registration requirement, and the inspection, security and maintenance requirements of this section as long as they remain in foreclosure.
(9) 
Any person or legal entity that has registered a property under this section must report any change of information contained in the registration within 10 days of the change.
(10) 
Failure to properly register or to modify the registration form from time to time to reflect a change of circumstances as required by this section is a violation of the chapter and shall be subject to enforcement and penalties.
(11) 
Pursuant to any administrative or judicial finding and determination that any property is in violation of this chapter, the municipality may take the necessary action to ensure compliance and place a lien on the property for the cost of the work performed to benefit the property and bring it into compliance. Registration of foreclosure property does not alleviate the mortgagee from obtaining all required licenses, permits and inspections required by applicable code or state statutes.
(12) 
If the mortgage and/or servicing on a property is sold or transferred, the new mortgagee is subject to all the terms of this chapter. Within 10 days of the transfer, the new mortgagee shall register the property or update the existing registration. The previous mortgagee(s) will not be released from the responsibility of paying all previous unpaid fees, fines, and penalties accrued during that mortgagee's involvement with the registrable property.
(13) 
If the mortgagee sells or transfers the registrable property in a non-arm's-length transaction to a related entity or person, the transferee is subject to all the terms of this chapter. Within 10 days of the transfer, the transferee shall register the property or update the existing registration. Any and all previous unpaid fees, fines, and penalties, regardless of who the mortgagee was at the time registration was required, including, but not limited to, unregistered periods during the foreclosure process, are the responsibility of the transferee and are due and payable with the updated registration. The previous mortgagee will not be released from the responsibility of paying all previous unpaid fees, fines, and penalties accrued during that mortgagee's involvement with the registrable property.
B. 
Violations.
(1) 
Unless otherwise provided for in this chapter, a violation of this chapter is declared unlawful.
(a) 
Per P.L. 2021, Chapter 444, N.J.S.A. 40:48-2.12s3g(1), an out-of-state creditor subject to an ordinance adopted pursuant to Subsection B(1) of this section found by the Municipal Court of the municipality in which the property subject to the ordinance is located, or by any other court of competent jurisdiction, to be in violation of the requirement to appoint an in-state representative or agent pursuant to the ordinance shall be subject to a fine of $2,500 for each day of the violation. Any fines imposed on a creditor for the failure to appoint an in-state representative or agent shall commence on the day after the ten-day period set forth in paragraph.
(2) 
Per P.L. 2021, Chapter 444, N.J.S.A. 40:48-2.12s3g(2), a creditor subject to an ordinance adopted pursuant to Subsection B(1) of this section found by the Municipal Court of the municipality in which the property subject to the ordinance is located, or by any other court of competent jurisdiction, to be in violation, excluding only a violation addressed by Subsection B(1)(a) of this subsection, of the ordinance shall be subject to a fine of $1,500 for each day of the violation. Any fines imposed pursuant to this subsection shall commence 31 days following receipt of the notice of violation, except if the violation presents an imminent risk to public health and safety, in which case any fines shall commence 11 days following receipt of the notice.
All fees applicable to this chapter may be revised by ordinance of the Borough Council. Registration and inspection fees shall be paid at the time of submitting the registration affidavit. There may also be a fee for the filing of any additional or new affidavit, with such fee being set by resolution of the Borough Council. For properties that are not registered within the required time frame, an additional fee for the added cost of the Borough's expenses in having to determine ownership, which may include, but not be limited to, title searches, shall be assessed and immediately payable. The payment of all fees under this chapter is secured by a lien against the property, which may be placed on the tax roll for collection in the same manner and subject to the same interest and penalties applicable to delinquent special assessments.
A. 
If the foreclosed upon vacant or abandoned vacant property includes vacant or unoccupied buildings, the mortgagee or owner of that property is responsible for immediately obtaining and paying for the Borough's "safety and maintenance inspection" (as defined herein) of the building and property, obtaining necessary permits, making required repairs and obtaining inspections from the Borough annually thereafter until the building is lawfully occupied, to ensure the buildings are safe, secured and well maintained. The mortgagee or owner shall demonstrate that all water, sewer, electrical, gas, HVAC and plumbing systems, exterior finishes and walls, concrete surfaces, accessory buildings and structures, swimming pools and spas, roofing, structural systems, foundation and drainage systems, gutters, doors, windows, driveways, sidewalks are sound, operational or properly disconnected.
B. 
If, at the time of the safety and maintenance inspection, the inspector deems that the electrical, plumbing or mechanical systems pose health or safety hazards and require additional inspection by the registered code official in that discipline, the mortgagee or owner shall be responsible to obtain and pay for that requested inspection.
C. 
If an owner or mortgagee fails or refuses to complete the inspections required by Subsection A of this section, the possessory lender shall be obligated to complete the inspection upon foreclosure of the property. Additionally, any lender who holds a mortgage on the property located within the Borough of Swedesboro shall obtain and pay for the inspection pursuant to Subsection A of this section to the extent permitted by law or under the mortgage, of the property that is the security for the mortgage, within five days after either the filing of a complaint for foreclosure (if foreclosure is by judicial action) or publishing a notice of foreclosure (if foreclosure is by advertisement).
All owners, possessory lenders, and lenders (to the extent permitted by law or the terms of a mortgage), are responsible for compliance with the requirements of this section which apply to all vacant property from the time of vacancy, including the time between vacancy and when registration is required.
A. 
Property shall be kept free from weeds, grass, dry brush, overgrown brush and dead vegetation in accordance with International Property Maintenance Code, as well trash, junk, debris, building materials, and accumulation of newspaper, circulars, flyers, notices, except those required by federal, state or local law, discarded items, including, but not limited to, furniture, clothing, large and small appliances, printed material, signage, containers, equipment, construction materials or any other items that give the appearance that the property is abandoned.
B. 
Property shall be maintained free from graffiti, tagging or similar markings by removal or painting over with an exterior grade paint that matches the color of the exterior of the surface.
C. 
All front, side and rear yards shall be properly maintained. Landscaping includes, but is not limited to, grass, ground cover, bushes, trees, shrubs, hedges or similar plantings. Maintenance includes, but is not limited to, regular watering, irrigation, cutting, pruning and mowing of required grasses and landscaping and removal of trimmings.
D. 
Pools, spas and other water features shall be kept drained and kept dry and free from debris. In either case, properties with pools and/or spas must comply with the minimum security fencing and barrier requirements of applicable construction, building and property maintenance codes and ordinances.
E. 
Property shall be maintained in a secure manner so as not to be accessible to unauthorized persons. Secure manner includes, but is not limited to, the closure and locking of windows, doors, gates, and any other openings of such size that may allow a child to access the interior of the property and/or structures. Broken windows must be repaired or replaced within 30 days. Boarding up of open or broken windows is prohibited except for temporary measure.
F. 
Owners or mortgagees shall inspect or cause the inspection of vacant property on a regular basis to verify compliance with this section and other applicable laws. If the property is owned by a person other than an individual and/or the lender or possessory lender is located more than 30 miles away, a local property management company shall be contracted to perform weekly inspections to verify that the requirements of this section and any other applicable laws are being met. The property shall be posted with name and twenty-four-hour contact telephone number of a property management company located within 30 miles of the subject property. The posting shall be no less than 18 inches by 24 inches and shall be of a seventy-two-point Arial font and shall contain, along with the name and twenty-four-hour contact number, the words:
"THIS PROPERTY MANAGED BY AND TO REPORT PROBLEMS OR CONCERNS CALL." The posting shall be placed on the interior of a window facing the street to the front of the property so it is visible from the street or secured to the exterior of the building structure facing the street to the front of the property so that is visible from the street, or if no such area exists, on a stake of sufficient size to support the posting in a location that is visible from the street to the front of the property, but not readily accessible to vandals. The local property management company shall inspect the property on a regular basis to determine if the property is in compliance with the requirements of this section.
G. 
Failure of the mortgagee or owner to properly maintain the property may result in a violation of the applicable codes and issuance of a citation or notice of violation in accordance with the International Property Maintenance Code and Municipal Code. Pursuant to a finding and determination by the municipality's Code Enforcement Officer, and/or designee, the municipality may take the necessary action to ensure compliance with this section.
H. 
In addition to the above, the property is required to be maintained in accordance with all applicable codes.
If a building is fire damaged, the owner or possessory lender has 90 days from the date of the fire to apply for a permit to start construction or demolition. An additional ninety-day extension may be granted by the Borough, provided the owner or possessory lender can demonstrate substantial progress towards completing repairs. Failure to do so will result in the property being deemed vacant and/or abandoned and subject to the requirements of this chapter.
If the owner, lender or possessory lender has failed to secure the property and it has been secured by the Borough, the Borough or its contracted agent, may reenter the structure to conduct necessary inspections to assure compliance with the requirements of this code and to determine if there are emergency or hazardous health and safety conditions in existence.
A vacant building or structure, an abandoned or foreclosed property shall not be occupied and/or sold until all violations have been corrected in accordance with the violation or correction notices issued and a certificate of occupancy has been issued by the Woolwich Township Construction Office. All mechanical, electrical, plumbing and structural systems shall be certified by a license contractor as being in good repair, the provisions of the International Property Maintenance Code, or its successor, complied with and all blight removed. In addition, a certificate of occupancy shall not be issued until all outstanding cost, assessments and/or liens owed to the Borough have been paid in full.
A. 
Any person who violates any provision of this chapter or the rules and regulations issued hereunder shall be fined not less than $100 and not more than $1,000 for each offense. Every day that a violation continues shall constitute a separate and distinct offense. Fines assessed under this chapter shall be recoverable from the owner as defined herein and shall be a lien on the property.
B. 
For purpose of this section, failure to file a registration affidavit within 30 calendar days after a building becomes vacant property or within 30 calendar days after assuming ownership of a vacant property, whichever is later, or within 10 calendar days of receipt of notice by the Borough, and failure to provide correct information on the registration affidavit, or failure to comply with the provisions of this chapter, or such provisions contained herein shall be deemed to be violations of this chapter.
Any person who opposes, obstructs, or resists any enforcement officer or any person authorized by the enforcement office in the discharge of duties as provided in this chapter shall be punishable as provided in the applicable codes in a court of competent jurisdiction.
Any enforcement officer or any person authorized by the municipality to enforce the sections here within shall be immune from prosecution, civil or criminal, for reasonable, good faith entry upon real property while in the discharge of duties imposed herein.
Registration and penalty fees outline in this chapter may be modified by an ordinance/resolution, passed and adopted by the Borough Council of the Borough of Swedesboro.
All resolutions/ordinances or parts thereof in conflict with the provisions of this chapter are to be the extent of such conflict hereby repealed.
Should any section, paragraph, sentence, clause, or phrase of this chapter be declared unconstitutional or invalid for any reason, the remaining portions of this chapter shall not be affected thereby and shall remain in full force and effect, and to that end the provisions of this chapter are hereby declared to be severable.
This chapter shall take effect immediately upon final adoption and publication by the Borough Council of the Borough of Swedesboro.