Township of Cinnaminson, NJ Chapter 193 Property, Abandoned and Vacant

[HISTORY: Adopted by the Township Committee of the Township of Cinnaminson 4-18-2022 by Ord. No. 2022-2.[1] Amendments noted where applicable.]

[1] Editor's Note: This ordinance also repealed former Ch. 193, Vacant Buildings, adopted 8-12-1987 by Ord. No. 1987-14 (Sec. 2.20 of the 1995 Code), as amended.

Article I Abandoned Property

§ 193-1 Definitions.

As used in this chapter, the following terms shall have the meanings indicated:

CREDITOR

A state-chartered bank, savings bank, savings-and-loan association or credit union, any person required to be licensed under the provisions of the New Jersey Residential Mortgage Lending Act, Sections 1 through 39 of P.L. 2009, c. 53 (N.J.S.A. 17:11C-51 through 17:11C-89), and any entity, agent, or assignee acting on behalf of the creditor named in the debt obligation, including, but not limited to, servicers, who has filed a complaint in the Superior Court seeking to foreclose upon a residential or commercial mortgage. A creditor shall not include the state, a political subdivision of the state, or a state, county, or local government entity, or their agent or assignee, such as the servicer.

OPERATOR

Any person, persons, or entity who is not the owner, who has charge, care, and control of a premises or part thereof, with or without the knowledge, consent, or authority of the owner. "Operator" shall also include a creditor as defined below.

OWNER

Includes the title holder, any agent of the title holder having authority to act with respect to a vacant property, and foreclosing entity subject to the provisions of P.L. 2021, c. 444, or any other entity determined by the Township to have authority to act with respect to the property.

VACANT AND ABANDONED PROPERTY

Any property not legally occupied by an owner or tenant, which is in such condition that it cannot be legally reoccupied, because of the presences or finding of at least two of the following:

A. Overgrown or neglected vegetation;

B. The accumulation of newspapers, circulars, flyers, or mail on the property;

C. Disconnected gas, electric, or water utility services to the property;

D. The accumulation of hazardous, noxious, or unhealthy substances or materials on the property;

E. The accumulation of junk, litter, trash, or debris on the property;

F. The absence of window treatments such as blinds, curtains, or shutters;

G. The absence of furnishings and personal items;

H. Statements of neighbors, delivery persons, or government employees indicating that the property is vacant and abandoned;

I. Windows or entrances to the property that are boarded up or closed off, or multiple windowpanes that are damaged, broken, and unrepaired;

J. Doors to the property that are smashed through, broken off, unhinged, or continuously unlocked;

K. A risk to the health, safety, or welfare of the public or any adjoining or adjacent property owners due to acts of vandalism, loitering, criminal conduct, or the physical destruction or deterioration of the property;

L. An uncorrected violation of a Township building, housing, or similar Code section during the preceding year, or an order by Township authorities declaring the property to be unfit for human occupancy and to remain vacant and unoccupied;

M. A mortgagee or other authorized party has secured or winterized the property due to the property being deemed vacant and unprotected or in danger of freezing;

N. A written statement issued by a mortgagor expressing the clear intent of all mortgagors to abandon the property; or

O. Any other reasonable indicia of abandonment.

§ 193-2 Establishment of abandoned property list.

A. The Code Enforcement Officer shall identify abandoned property within the Township of Cinnaminson for the purpose of establishing an abandoned property list. The abandoned property list shall include, for each abandoned property identified, the tax block and lot number, the name of the owner of record, if known, street address of the lot and the date added to the list. The Code Enforcement Officer may add properties to the abandoned property list at any time and may delete properties at any time when he or she finds that the property no longer meets the definition of an "abandoned property."

B. An abandoned property shall not be included on the abandoned property list if rehabilitation is being performed in a timely manner, as evidenced by building permits issued and diligent pursuit of rehabilitation work authorized by those permits. A property on which an entity other than the Township of Cinnaminson has purchased or taken assignment from the Township of a tax sale certificate which has been placed on the abandoned property list may be removed if the owner of the certificate pays all municipal taxes and liens due on the property within 30 days after the property is placed on the list; provided, however, that if the owner of the certificate fails to initiate foreclosure proceedings within six months after the property was first placed on the list, the property shall be restored to the abandoned property list in accordance with the provisions of N.J.S.A. 55:19-103.

C. The Code Enforcement Officer shall establish the abandoned property list, after which a notice of violation will be sent, certified mail, return receipt requested, and by regular mail, to the owner of record and any stakeholder. The notice of violation shall identify the property determined to be abandoned, setting forth the owner of record and any stakeholder, if known, the tax lot and block number, street address and the date the property was added to the list. The Code Enforcement Officer, in consultation with the Tax Collector, shall also send out a notice by regular mail to any mortgagee, servicing organization, or property tax processing organization that receives a duplicate copy of the tax bill pursuant to N.J.S.A. 54:4-64(d). When the owner of record is not known for a particular property and cannot be ascertained by the exercise of reasonable diligence by the Tax Collector, notice shall not be mailed, but instead shall be posted on the property in the manner as provided in N.J.S.A. 40:48-2.7. The mailed notice shall indicate the factual basis for the finding of the Code Enforcement Officer that the property is abandoned, as that term is defined herein and in N.J.S.A. 55:19-54, and shall specify the information relied upon in making such finding. In all cases, a copy of the mailed or posted notice shall also be filed by the Code Enforcement Officer in the Office of the Burlington County Clerk. This filing shall have the same force and effect as a formal notice under N.J.S.A. 2A:15-6. The notice shall be captioned with the name of the Township of Cinnaminson as "plaintiff" and the name of the property owner as "defendant," as though an action had been commenced by the Township against the owner.

D. An owner or lienholder may challenge the inclusion of his property on the abandoned property list by appealing that determination to the Township Economic Development Committee within 30 days of the owner's receipt of the certified notice or 40 days from the date upon which the notice was sent. An owner whose identity was not known to the Economic Development Committee shall have 40 days from the date upon which notice was posted to challenge the inclusion of a property on the abandoned property list. For good cause shown, the Economic Development Committee may accept a late filing of an appeal. Within 30 days of receipt of a request for an appeal of the findings contained in the notice, a hearing shall be scheduled for redetermination of the matter. Any property included on the list shall be presumed to be abandoned property unless the owner, through the submission of an affidavit or certification asserting that the property is not an abandoned property, can demonstrate that the property was erroneously included on the list. The affidavit or certification shall be accompanied by supporting documentation, such as, but not limited to, photographs, repair invoices, bills and construction contracts. The sole ground for appeal shall be that the property in question is not abandoned property as that term is defined herein and in N.J.S.A. 55:19-54. The Economic Development Committee shall decide any timely filed appeal within 10 days of the hearing on the appeal and shall promptly, by certified mail, return receipt requested, and by regular mail, notify the property owner of the decision and the reasons therefor.

E. The property owner may challenge an adverse determination of an appeal, in accordance with the New Jersey Court Rules, a summary trial proceeding in the Superior Court, Burlington County. Such action shall be instituted within 20 days of the date of the notice of decision. The sole ground for appeal and new hearing before the Superior Court shall be that the property in question is not an abandoned property as that term is defined in N.J.S.A. 55:19-54. The failure to institute an action of appeal on a timely basis shall constitute a jurisdictional bar to challenging the adverse determination, except that, for good cause shown, the court may extend the deadline for instituting the action.

F. The Code Enforcement Officer shall promptly remove any property from the abandoned property list that has been determined by the governing body or on appeal not to be abandoned and may, in its discretion, remove properties from said list whenever the Code Enforcement Officer deems such removal appropriate under the circumstances.

G. The abandoned property list shall become effective, and the Township of Cinnaminson shall have the right to pursue any legal remedy with respect to properties on the list, at any time after at least one property has been placed on the list and following the expiration of the period for appeal with respect to that first property or upon the denial of an appeal brought by the property owner of that first property.

§ 193-3 Removal of property from abandoned property list.

A. An owner may request removal of their property from the abandoned property list prior to sale of the tax sale certificate by paying all taxes and Township liens due, including interest and penalties, and:

(1) By posting cash or a bond equal to the cost of remediating all conditions because of which the property has been determined to be abandoned pursuant to N.J.S.A. 55:19-55 and by posting cash or a bond to cover the cost of any environmental cleanup required on the property, evidenced by a certification by a licensed engineer retained by the owner and reviewed and approved by the Township stating that the cash or bond adequately covers the cost of the cleanup; or

(2) By demonstrating to the satisfaction of the Township that the conditions rendering the property abandoned have been remediated in full; provided, however, that where the Administrator finds that the owner is actively engaged in remediating the conditions because of which the property was determined to be abandoned, as evidenced by significant rehabilitation activity on the property, an extension of time of not more than 120 days may be granted for the owner to complete all work, during which time no further proceedings will be taken against the owner or the property.

B. If the owner has posted cash or a bond in order to have a property removed from the abandoned property list and the conditions because of which the property was determined to be abandoned have not been fully remediated within one year of the date of posting the cash or bond, or, in the case of a property which requires a remediation of any known, suspected or threatened release of contaminants, if the owner has failed to enter into a memorandum of agreement with the New Jersey Department of Environmental Protection or an administrative consent order, as the case may be, or if an agreement or order is in effect but the owner has failed to perform the remediation in conformance with the agreement or order, then the cash or bond shall be forfeited to the Township, which shall use the cash or bond and any interest which has accrued thereon for the purpose of demolishing or rehabilitating the property or performing the environmental remediation. Any funds remaining after the property has been demolished, rehabilitated or cleaned up shall be returned to the owner.

§ 193-4 Sale of restricted tax liens.

A. Notwithstanding the provisions of N.J.S.A. 54:5-19, or the provisions of any other law to the contrary, if a property is included on the abandoned property list and the property taxes or other Township liens due on the property are delinquent for six or more quarters as of the date of expiration of the right to appeal the property's inclusion on the list or, if an appeal has been filed, as of the date that all opportunities for appeal of inclusion on the list have been exhausted, then the tax lien on the property may be sold in accordance with the procedures of the Tax Sale Law, N.J.S.A. 54:5-1 et seq., on or after the 90th day following the expiration of that time of appeal or final determination on an appeal.

B. The Township of Cinnaminson may, at its option, require that the sale of the tax sale certificate or any subsequent assignment or transfer of a tax sale certificate held by the Township be subject to the express condition that the purchaser or assignee shall be obliged to perform and conclude any rehabilitation or repairs necessary to remove the property from the abandoned property list pursuant to N.J.S.A. 55:19-55 and to post a bond in favor of the Township to guarantee the rehabilitation or repair of the property. The Mayor and Township Council may waive a requirement to post a bond imposed by the Township for any purchaser, assignee or transferee of a tax sale certificate that provides documentation acceptable to the Mayor and Township Council that the purchaser, assignee or transferee is a qualified rehabilitation entity as defined in N.J.S.A. 55:19-80. The cost of rehabilitation and repairs and the cost of the bond shall be added to the amount required to be paid by the owner for redemption of the property. The purchaser, assignee or transferee of the tax sale certificate who is required to rehabilitate and repair the property shall be required to file the appropriate affidavits with the Tax Collector, pursuant to N.J.S.A. 54:5-62, representing the amounts of monies expended periodically toward the rehabilitation or repair of the property. A purchaser, assignee or transferee shall be entitled to interest on the amounts expended, as set forth in the affidavits, at the delinquent rate of interest for delinquencies in excess of $1,500 in effect for the time period when the amounts were expended, pursuant to N.J.S.A. 54:4-67. The tax sale certificate purchaser, assignee or transferee, with the authority of the Township of Cinnaminson, shall be permitted to enter in and upon the property for the purposes of appraising the costs of rehabilitation and repair and to perform all other acts required to guarantee the completion of the rehabilitation or repair of the property. No rehabilitation or repair work shall be commenced, however, until proof of adequate liability insurance and an indemnification agreement, holding the Township of Cinnaminson harmless, has been filed with the Township Clerk.

C. If the Township of Cinnaminson acquires the tax sale certificate for a property on the abandoned property list, then, upon 10 days' written notice to the property owner and any mortgagee as of the date of the filing of the notice pursuant to N.J.S.A. 55:19-55, the Township shall be permitted to enter upon the property and remediate any conditions that caused the property to be included on the abandoned property list. No remediation shall be commenced, however, if within that ten-day period the owner or mortgagee shall have notified the Township, in writing, that the owner or mortgagee has elected to perform the remediation itself. When the owner or mortgagee elects to perform the remediation itself, it shall be required to post bond in favor of the Township of Cinnaminson in order to ensure performance. The amount and conditions of the bond shall be determined by the Mayor and Township Council.

D. The cost of remediation incurred by the Township of Cinnaminson, as so certified by the entity incurring the cost upon completion of the remediation, shall constitute a lien upon the property first in time and right to any other lien, whether the other lien was filed prior to or after the filing of any lien by the Township, except for Township taxes, liens and assessments and any lien imposed pursuant to the Spill Compensation and Control Act, N.J.S.A. 58:10-23.11 et seq., together with any interest thereon. The certification of cost shall be filed and recorded as a lien by the entity incurring the cost with the Burlington County Clerk.

E. The clearance, development, redevelopment, or repair of property being maintained as an abandoned property pursuant to this chapter shall be considered a public purpose and public use for which the power of eminent domain may be lawfully exercised.

§ 193-5 Special tax sale and criteria for bidders.

A. The Township of Cinnaminson may hold special tax sales with respect to those properties eligible for tax sale pursuant to N.J.S.A. 54:5-19 which are also on the abandoned property list.

B. The governing body shall establish criteria for eligibility to bid on properties at the sale, which may include, but need not be limited to:

(1) Documentation of the bidder's ability to rehabilitate or otherwise reuse the property consistent with Township plans and regulations; commitments by the bidder to rehabilitate or otherwise reuse the property, consistent with Township plans and regulations;

(2) Commitments by the bidder to take action to foreclose on the tax lien by a date certain; and

(3) Such other criteria, as may be determined, if necessary to ensure that the properties to be sold will be rehabilitated or otherwise reused in a manner consistent with the public interest.

C. Establish minimum bid requirements for a special tax sale that are less than the full amount of the taxes, interest and penalties due, to help ensure that the properties will be rehabilitated or otherwise utilized in a manner consistent with the public interest.

D. The ability to combine properties in said special tax sale into bid packages, and require that bidders place a single bid on each package, rejecting any and all bids on individual properties that are submitted.

E. The Township may sell properties subject to the provision that if the purchaser fails to carry out any commitment that has been set forth as a condition of sale, or misrepresents any material qualification that has been established as a condition of eligibility to bid pursuant thereto, then the properties and any interest thereto acquired by the purchaser shall revert to the Township, and any amount paid by the purchaser at the special tax sale shall be forfeit to the Township.

F. In the event there are two or more qualified bidders for any property or bid package in a special tax sale, the Township may designate the unsuccessful qualified bidder whose bid was closest to the successful bid as an eligible purchaser. In the event that the selected purchaser of that property or bid package fails to meet any of the conditions of sale established by the Township pursuant to this section and their interest in the property or properties reverts to the Township, the Township may subsequently designate the entity previously designated as an eligible purchaser as the winning bidder for the property or properties and assign the tax sale certificates to that entity on the basis of that entity's bid at the special tax sale, subject to the terms and conditions of the special tax sale.

G. The Township of Cinnaminson shall provide notice of a special tax sale pursuant to N.J.S.A. 54:5-26. The notice shall include any special terms of sale established by the Township pursuant to this section. Nothing shall prohibit the Township from holding a special tax sale on the same day as a standard or accelerated tax sale.

§ 193-6 Expedited action to foreclose right of redemption.

A. When a person or entity other than the Township of Cinnaminson acquires a tax sale certificate for a property on the abandoned property list at tax sale, the purchaser may institute an action to foreclose the right of redemption at any time after the expiration of just six months following the date of the sale of the tax sale certificate.

B. When the Township of Cinnaminson is the purchaser at tax sale of any property on the abandoned property list pursuant to N.J.S.A. 54:5-34, an action to foreclose the right of redemption may be instituted in accordance with the provisions of Subsection b of N.J.S.A. 54:5-77.

C. After the foreclosure action is instituted, the right to redeem shall exist and continue to exist until barred by the judgment of the Superior Court; provided, however, that no redemption shall be permitted except where the owner:

(1) Posts cash or a bond equal to the cost of remediating the conditions because of which the property was determined to be abandoned pursuant to N.J.S.A. 55:19-56, as determined by the Court; or

(2) Demonstrates to the Court that the conditions because of which the property was determined to be abandoned have been remedied in full.

§ 193-7 Abandoned property status during expedited foreclosure.

A. If an entity other than the Township of Cinnaminson has purchased or taken assignment from the Township of a tax sale certificate on a property that has not been legally occupied for a period of six months, that property shall not be added to the abandoned property list under the following limited circumstances:

(1) The owner of the certificate continued to pay all Township taxes and liens on the property in the tax year when due; and

(2) The owner of the certificate takes action to initiate foreclosure proceedings within six months after the property is eligible for foreclosure pursuant to either Subsection a or Subsection b of N.J.S.A. 54:5-86, as appropriate, and diligently pursues foreclosure proceedings in a timely fashion thereafter.

B. A determination that a property is abandoned property under the provisions of this chapter and N.J.S.A. 55:19-78 et seq., shall not constitute a finding that the use of the property has been abandoned for purposes of municipal zoning or land use regulation.

C. Upon the request of a purchaser or assignee of a tax sale certificate seeking to bar the right of redemption on an abandoned property pursuant to Subsection b of N.J.S.A. 54:5-86, the Tax Collector shall, in a timely fashion, provide the requester with a certification that the property fulfills the definition of an "abandoned property" according to the criteria established in N.J.S.A. 55:19-81 and N.J.S.A. 55:19-82.

§ 193-8 Summary action for control and possession of abandoned property.

A. A summary action or other action to transfer possession and control of abandoned property in need of rehabilitation to the Township of Cinnaminson may be brought by the Township in the Superior Court, Burlington County. If the Court shall find that the property is abandoned, and that the owner or party in interest has failed to submit and initiate a rehabilitation plan, then the Court may authorize the Township to take possession and control of the property and to develop its own rehabilitation plan for the property.

B. Where the Township has been granted possession and control, the Township may commence and maintain further proceedings for the conservation, protection or disposal of the property, or any part thereof, that are required to rehabilitate the property, recoup the cost and expenses of rehabilitation, and for the sale of the property; provided, however, that the Court shall not direct the sale of the property if the owner applies to the Court for reinstatement of control and possession of the property as permitted by N.J.S.A. 55:19-92.

C. Failure by the owner, mortgage holder or lienholder to submit a plan for rehabilitation to the Township, obtain appropriate construction permits or, in the alternative, submit formal applications for funding the cost of rehabilitation to local, state or federal agencies providing such funding, within the initial six-month period, shall be deemed clear evidence that the owner has failed to take any action to further the rehabilitation of the property.

D. An owner may defend against a complaint filed pursuant to N.J.S.A. 55:19-84 by submitting a plan for the rehabilitation and reuse of the property which is the subject of the complaint and by posting a bond equal to 125% of the amount determined by the Township to be the projected cost of rehabilitation.

E. Any plan submitted by an owner to defend against a complaint shall be submitted within 60 days after the complaint has been filed, unless the Court provides the owner with an extension of time for good cause shown. A plan submitted by an owner pursuant to this section shall include, but not be limited to:

(1) A detailed financial feasibility analysis, including documentation of the economic feasibility of the proposed reuse, including operating budgets or resale prices, or both, as appropriate;

(2) A budget for the rehabilitation of the property, including sources and uses of funds, based on the terms and conditions of realistically available financing, including grants and loans;

(3) A timetable for the completion of rehabilitation and reuse of the property, including milestones for performance of major steps leading to and encompassing the rehabilitation and reuse of the property; and

(4) Documentation of the qualifications of the individuals and firms that will be engaged to carry out the planning, design, financial packaging, construction, and marketing or rental of the property.

F. Where the Court approves the rehabilitation plan of the owner or other party in interest, then it may appoint the Economic Development Committee to act as monitor of compliance and progress. If the owner fails to carry out any step in the approved plan, then the Township may apply to the Court to have the posted bond forfeited, to transfer possession of the building to the Township to complete the rehabilitation plan, and to grant authorization to use the bond proceeds for the rehabilitation. The owner or other party in interest shall provide bimonthly reports to the Township on its activities and progress toward rehabilitation and reuse of the property.

G. If an owner is unsuccessful in defending against a complaint filed pursuant to N.J.S.A. 55:19-84, the mortgage holder or lienholder may seek to be designated in possession of the property by submitting a plan and posting a bond meeting the same conditions as set forth in N.J.S.A. 55:19-87. Their plan must be submitted within 60 days following the Court's rejection of the owner's plan, unless the Court provides the mortgage holder or lienholder with an extension of time for good cause shown. If the Court approves any such mortgage holder or lienholder's plan, it shall designate that party to be in possession of the property for purposes of ensuring its rehabilitation.

H. The mortgage holder or lienholder, as the case may be, shall provide bimonthly reports to the Court and the Township on its activities and progress toward rehabilitation and reuse of the property. If the mortgage holder or lienholder fails to carry out any material step in the approved plan, then the Township Solicitor shall notify the Court, which may order the posted bond forfeit, grant the Township possession of the property, and authorize the Township to use the proceeds of the bond for rehabilitation of the property.

I. Any sums incurred or advanced for the purpose of rehabilitating the property by a mortgage holder or lienholder granted possession of a property, including Court costs and reasonable attorney's fees, may be added to the unpaid balance due to that mortgage holder or lienholder, with interest calculated at the same rate set forth in the note or security agreement, or, in the case of a tax lienholder, at the statutory interest rate for subsequent liens.

J. If no mortgage holder or lienholder meets the conditions of N.J.S.A. 55:19-88, then the Township may submit a plan to the Court which conforms with the provisions of N.J.S.A. 55:19-87. Such plan shall designate whether the Township or a qualified rehabilitation entity shall undertake the rehabilitation plan in accordance with the provisions of N.J.S.A. 55:19-90.

§ 193-9 Township rehabilitation or designation of qualified rehabilitation entity.

A. The Economic Development Committee may designate a qualified rehabilitation entity for the purpose of exercising the Township's rights, where that designation will further the rehabilitation and reuse of the property consistent with Township plans and objectives.

B. Regardless of whether the Township exercises its rights directly or the Mayor and Township Council designates a qualified rehabilitation entity pursuant to this section, the Township shall maintain, safeguard, and maintain insurance on the property while in possession of such property. Notwithstanding the Township's possession of the property, the owner of the property shall not be relieved of any civil or criminal liability or any duty imposed by reason of acts or omissions of the owner.

C. The Court may approve the borrowing of funds by the Township to rehabilitate the property and may grant a lien or security interests with priority over all other liens or mortgages other than municipal liens. Prior to granting this lien priority, the Court must find as follows:

(1) The Township sought to obtain the necessary financing from the senior lienholder, which declined to provide such financing on reasonable terms;

(2) The Township sought to obtain a voluntary subordination from the senior lienholder, which refused to provide such subordination; and

(3) Lien priority is necessary in order to induce another lender to provide financing on reasonable terms. No lien authorized by the Court shall take effect unless recorded with the Clerk of Burlington County.

D. Where the Township has designated a qualified rehabilitation entity to act on its behalf, the qualified rehabilitation entity shall provide bimonthly reports to the Township on its activities and progress toward rehabilitation and reuse of the property. The Township or qualified rehabilitation entity, as the case may be, shall provide such reports to the Court as the Court determines to be necessary. If the Court finds that the Township or its designee have failed to take diligent action toward rehabilitation of the property within one year from the grant of possession, then the Court may request that the Township designate another qualified rehabilitation entity to exercise its rights, or if the Township fails to do so, may terminate the order of possession and return possession and control of the property to its owner.

E. The Township of Cinnaminson shall file a notice of completion with the Court, and shall also serve a copy on the owner and any mortgage holder or lienholder, at such time as the Township has determined that no more than six months remain to the anticipated date on which rehabilitation will be complete. This notice shall include an affidavit of the Township Clerk or such other person designated by the governing body, attesting that the rehabilitation is anticipated to be completed within six months, and a statement setting forth the actions as it plans to undertake consistent with the plan.

§ 193-10 Petition for reinstatement of control and possession by owner.

A. An owner may petition for reinstatement of the owner's control and possession of the property at any time after one year from the Court's removal of possession, but no later than 30 days after the Township of Cinnaminson has filed a notice of completion with the Court or, in the event the notice of completion is filed within less than one year of the grant of possession, within 30 days after the Township has filed said notice.

B. The Court may allow additional time for good cause if that additional time does not materially delay completion of the rehabilitation, place undue hardship on the Township or affect any of the terms or conditions under which the Township has applied for or received financing for the rehabilitation of the property.

C. If the owner fails to petition for the reinstatement of control and possession of the property within 30 days after the Township has filed a notice of completion or, in any event, within two years after the initial grant of possession, or if the owner fails to meet any conditions that may be set by the Court in granting a reinstatement petition, the Court may grant the Township title or authorize the Township to sell the property, subject to the provisions of N.J.S.A. 55:19-96.

§ 193-11 Procedure for Township to place liens, obtain title and sell property.

A. The Mayor and Township Council, with the approval of the Court, may place a lien on the property to cover any costs of the Township in connection with any proceeding under N.J.S.A. 55:19-78 et seq., incurred prior to the grant by the Court of an order of possession, which may include costs incurred to stabilize or secure the property to ensure that it can be rehabilitated in a cost-effective manner. Any such lien shall be considered a Township lien for the purposes of N.J.S.A. 54:5-9, with the rights and status of a Township lien pursuant thereto.

B. Where the Township seeks to gain title to the property, it shall purchase the property for fair market value on such terms as the Court shall approve and may place the proceeds of sale in escrow with the Court.

C. The Court may authorize the Township of Cinnaminson to sell the building free and clear of liens, claims and encumbrances, in which event all such liens, claims and encumbrances shall be transferred to the proceeds of sale with the same priority as existed prior to resale in accordance with the provisions of this section, except that municipal liens shall be paid at settlement. The proceeds of the purchase of the property shall be distributed as set forth in N.J.S.A. 55:19-97.

D. Upon approval by the Court, the Township shall sell the property on such terms and at such price as the Court shall approve and may place the proceeds of sale in escrow with the Court. The Court shall order a distribution of the proceeds of sale after paying Court costs in the order of priority set forth in N.J.S.A. 55:19-97.

E. With the exception of the holding of special tax sales pursuant to N.J.S.A. 55:19-101, the remedies available under N.J.S.A. 55:19-78 et seq., shall be available to the Township with respect to any abandoned property, whether or not the Township has established an abandoned property list and whether or not the property at issue has been included on any such list.

§ 193-12 Violations and penalties.

A. Every day that any of the provisions of this chapter are violated by any person, firm or corporation, including an officer, director or an employee of a corporation, shall be a separate and distinct violation of this chapter.

B. Any person, firm or corporation, including an officer, director or employee of a corporation, who shall violate any provisions of this article shall be subject to a penalty not to exceed the sum of $500 or be imprisoned in the county jail for a term not exceeding six months, or both, for each and every violation.

Article II Maintenance of Vacant Properties

§ 193-13 Registration requirements of vacant and abandoned properties not in foreclosure.

The owner and/or operator of any vacant property that is not the subject of an ongoing foreclosure action, as defined herein, shall, within 30 calendar days after the building becomes vacant or abandoned property or within 30 calendar days after assuming ownership of the vacant property, whichever is later, or within 10 calendar days of receipt of notice by the municipality, file a registration statement for such vacant property with the Township Clerk on forms provided by the Township for such purposes. Failure to receive notice by the Township shall not constitute grounds for failure to register the property.

A. Each property having a separate block and lot number as designated in official records of the municipality shall be registered separately.

B. The registration statement shall include the name, street address, telephone number and email address (if applicable) of a person 21 years or older, designated by the owner and/or operator or owner and/or operators as the authorized agent for receiving notices of code violations and for receiving process in any court proceeding or administrative enforcement proceeding on behalf of such owners and/or operators in connection with the enforcement of any applicable code, and the name, street address, telephone number and email address (if applicable) of the firm and the actual name(s) of the firm's individual principal(s) responsible for maintaining the property. The individual or representative of the firm responsible for maintaining the property shall be available by telephone or in person on a twenty-four-hour-per-day, seven-day-per-week basis. The two entities may be the same or different persons. Both entities shown on the statement must maintain offices in the State of New Jersey or reside within the State of New Jersey.

C. The registration shall remain valid for one year from the date of registration, except for the initial registration time, which shall be prorated through December 31. The owner and/or operator shall be required to renew the registration annually as long as the building remains a vacant property.

D. The annual renewal shall be completed by January 1 each year.

E. The owner and/or operator shall notify the Township Clerk within 30 calendar days of any change in the registration information by filing an amended registration statement on a form provided by the Township Clerk for such purpose.

F. The registration statement shall be deemed prima facie proof of the statements therein contained in any administrative enforcement proceeding or court proceeding instituted by the Township against the owners and/or operators of the building.

§ 193-14 Access to vacant properties.

The owner of any vacant property registered under this article shall provide access to the Township and its officials to conduct exterior and interior inspections of the building to determine compliance with municipal codes, upon reasonable notice to the property owner and/or operator or the designated agent. Such inspections shall be carried out on weekdays during the hours of 8:00 a.m. and 4:00 p.m., or such other time as may be mutually agreed upon between the owner and/or operator and the Township.

§ 193-15 Responsible owner or agent.

A. An owner who meets the requirements of this article with respect to the location of his or her residence or workplace in the State of New Jersey may designate him or herself as agent or as the individual responsible for maintaining the property.

B. By designating an authorized agent under the provisions of this section, the owner consents to receive any and all notices of code violations concerning the registered vacant property and all process in any court proceeding or administrative enforcement proceeding brought to enforce code provisions concerning the registered building by service of the notice or process on the authorized agent. Any owner who has designated an authorized agent under the provisions of this section shall be deemed to consent to the continuation of the agent's designation for the purposes of this section until the owner notifies the Township, in writing, of a change of authorized agent or until the owner files a new annual registration statement.

C. Any owner who fails to register vacant property under the provisions of this article shall further be deemed to consent to receive by posting on the building, in plain view, and by service of notice at the last known address of the owner of the property on record within the Township of Cinnaminson by regular and certified mail, any and all notices of code violations and all process in an administrative proceeding brought to enforce code provisions concerning the building.

§ 193-16 Requirements of owners and/or operators of vacant properties.

The owner and/or operator of any building that has become vacant property, and any person maintaining or operating or collecting rent for any such building that has become vacant, shall, within 30 days thereof:

A. Enclose and secure the building against unauthorized entry as provided in the applicable provisions of the Township Code or as set forth in the rules and regulations supplementing those codes in accordance with reasonable design standards and matching the color and appearance of existing material; and

B. Secure the building from unauthorized entry and maintain the sign until the building is again legally occupied or demolished or until repair or rehabilitation of the building is complete; and

C. Ensure that the exterior grounds of the structure, including yards, fences, sidewalks, walkways, rights-of-way, alleys, retaining walls, attached or unattached accessory structures and driveways, are well maintained and free from trash, debris, loose litter and grass and weed growth; and

D. Continue to maintain the structure in a secure and closed condition, keep the grounds in a clean and well-maintained condition (including, but not limited to, maintaining grass areas and removing any temporary stone surfaces), and ensure that the sign is visible and intact until the building is again occupied or is demolished or until repaid and/or rehabilitation of the building is complete; and

E. Replace any prior existing signage with clear blank panels until the building is again legally occupied or the supporting frame is demolished; and

F. No concrete or plastic "Jersey barriers," ornamental bollards, and/or chains shall be permitted on vacant and abandoned properties; and

G. If the owner of a residential property vacates or abandons any property on which a foreclosure proceeding has been initiated, or if a residential property becomes vacant at any point subsequent to the operator's filing the summons and complaint in an action to foreclose on a mortgage against the subject property, but prior to vesting of title in the operator or any other third party, and the property is found to be a nuisance and/or in violation of any of the provisions of this article, the Code Enforcement Officer shall notify the operator, which shall have the responsibility to abate the nuisance and/or correct the violation in the same manner and to the same extent as the title owner of the property, to such standard or specification as may be required by state law or this article. The Township shall include a description of the conditions that gave rise to the violation with the notice of violation, and shall provide a period of not less than 30 days from the operator's receipt of the notice for the operator to remedy the violation. If the operator fails to remedy the violation within that time period, the Township may impose penalties allowed for such violations pursuant to § 193-19 of this article.

§ 193-17 Establishment and administration of registry for properties in foreclosure.

A. The Township shall create and maintain a registry of all commercial and/or residential properties within the Township for which a summons and complaint in an action to foreclose has been filed with the New Jersey Superior Court, pursuant to its authority granted by P.L. 2021, c. 444. This registry will be formed and maintained to assist the Township with regulating the maintenance, security, and upkeep of properties which may become vacant and abandoned during the foreclosure process, in order to prevent the deleterious effects of blight associated with vacant and abandoned properties that are not maintained.

B. The Township may, at its discretion, create, maintain, and administer this registry independently, retain the professional services of a third party pursuant to the Local Public Contracts Law, N.J.S.A. 40A:11-1 et seq., or participate in a shared services agreement with other local units, counties, and/or county improvement authorities for the creation, maintenance, and administration of the registry pursuant to the Uniform Shared Services and Consolidation Act, N.J.S.A. 40A:65-1 et seq.

C. Any third parties retained to create, maintain, and/or administer the registry shall have the authority, on behalf of the Township, to:

(1) Identify properties subject to the registration requirement.

(2) Maintain and update the registration list.

(3) Communicate with creditors and/or in-state representatives.

(4) Invoice and collect payment of fees.

(5) Monitor compliance.

(6) Such other functions, within the scope of P.L. 2021, c. 444, which may be deemed necessary to carry out its function on behalf of the Township.

D. Any third parties retained to create, maintain, and/or administer the registry shall be required to comply with the following reporting and payment requirements:

(1) Any and all amounts collected by the third party as part of its administration of the Township's registry, including registration fees, interest, and penalties, shall be paid, in full, directly to the Township, or Burlington County, as applicable, not less than once per year, or as otherwise directed by the Township's Zoning Officer or designee. No fees, payments, expenses, or other deductions shall be made from this payment; payment for any third party's services under this article shall be made by the Township, or as applicable, the county/county improvement authority, directly to the third party, under the terms and conditions outlined within the contract for professional services.

(2) Not less than once per year on the first business day of each calendar year, or as otherwise may be requested by the Tax Collector, any third party administering the Township's registry shall file with the Tax Collector a certification identifying:

(a) The address, block, lot, and contact information of any property for which registration fees under this article are due and owing at the time of the certification;

(b) The amount of the registration fees, and separately, any interest, fines, and other penalties due and owing at the time of the certification; and

(c) The date on which the property became eligible for inclusion on the Township's registry.

§ 193-18 Registration, notice, and other creditor requirements.

A. Within 30 days of the effective date of this chapter, any creditor who has initiated a summons and complaint with the New Jersey Superior Court in an action to foreclose on a commercial and/or residential mortgage for a property located within the Township i) prior to the effective date of this chapter, and ii) which is pending as of the effective date of this chapter, shall provide notice in accordance with Subsection B of this section.

B. Notice.

(1) Within 10 days of filing a summons and complaint with the New Jersey Superior Court in an action to foreclose on a commercial and/or residential mortgage for a property located within the Township, the creditor shall notify the Township Clerk, or his/her designee, of the action. Such notice shall include:

(a) The address, block and lot of the subject property;

(b) The date the summons and complaint in an action to foreclose on a mortgage was filed against the subject property, the court in which it was filed, and the docket number of the filing;

(c) Whether the property is vacant and abandoned in accordance with the definition in this chapter;

(d) The full name, address, and telephone number for the representative of the creditor who is responsible for receiving notice of complaints of property maintenance code violations;

(e) The full name, address, and telephone number of any persons or entity retained by the creditor or a representative of the creditor to be responsible for any care, maintenance, security, or upkeep of the property; and

(f) If the creditor is out of state, the full name, address, and telephone number of an in-state representative or agent who shall be responsible for any care, maintenance, security, or upkeep of the property, and for receiving notice of complaints of property maintenance and code violations.

(2) The notice requirements herein represent a continuing obligation throughout the pendency of the foreclosure action. After initial notice to the Township, creditors subject to the notice requirement shall update the Township's property registration program within 10 days of any change in the information contained in the original or any subsequent notices.

C. Creditors of any commercial and/or residential mortgage required to notify the Township pursuant to this section shall:

(1) Register the property with the Township's property registration program as a property in foreclosure within 30 days of notifying the Township.

(2) Be subject to the registration fee, notice requirements, and penalties for noncompliance established within this chapter.

(3) Update the property registration within 10 days of any change in the information contained in the original notice to the Township.

(4) If an out-of-state creditor, appoint an in-state representative or agent to act for the foreclosing creditor, whose contact information shall be contained within the initial notice to the Township.

(5) Within 10 days of the property becoming vacant and abandoned at any time during the pendency of the foreclosure action, the creditor shall:

(a) Assume responsibility for the care, maintenance, upkeep, and security of the exterior of the property;

(b) Secure the property against unauthorized entry;

(c) Post a sign on the inside of the property, visible to the public, containing the name, address, and telephone number of the creditor, or an out-of-state creditor's in-state representative or agent, for the purpose of receiving service of process;

(d) Acquire and maintain a vacancy insurance policy which covers any damage to any person or property caused by any physical condition of the property while registered with the Township's property registration program;

(e) Provide proof, within 10 days of receiving a request by the Township or its designee, that the above conditions have been satisfied;

(f) Cure any violations of the above requirements within 30 days of receiving a notice of violation, or if deemed to present an imminent threat to public health and safety, within 10 days of receiving such notice.

(6) Update the property registration within 10 days of the creditor becoming aware that the property is deemed vacant and abandoned as defined herein

D. If at any time the creditor is deemed to be in violation of the above requirements, and/or if the property is deemed to be in violation of any other applicable local or state maintenance, health, or safety codes, the Code Official or his/her designee shall notify the creditor using the contact information provided in the property registry established by this chapter.

§ 193-19 Violations and penalties.

A. An out-of-state creditor subject to the notice and registration requirements of this chapter, found to be in violation of the requirement to appoint an in-state representative or agent, shall be subject to a fine of $2,500 for each day of the violation. The violation shall be deemed to commence on the day after the creditor's initial ten- or thirty-day requirement to notify the Township of applicable foreclosure actions.

B. A creditor subject to the notice and registration requirements of this chapter found to be in violation of any other section of this chapter shall be subject to a fine of $1,500 for each day of the violation. The violation shall be deemed to commence on the 31st day following the creditor's receipt of a notice of violation, or if deemed to present an imminent threat to public health and safety, on the 11th day following the creditor's receipt of such notice.

C. If the Township expends public funds in order to abate a nuisance or correct a violation on a commercial property in situations in which the creditor was given notice pursuant to this chapter, but failed to abate the nuisance or correct the violation as directed, the Township shall have the same recourse against the creditor as it would have against the owner of the property, including but not limited to the recourse provided under N.J.S.A. 55:19-100 et seq.

D. For all other provisions of this article, any owner, operator or occupant who or which shall violate any of the provisions of this article shall, upon conviction in the Cinnaminson Township Municipal Court or any such other court having jurisdiction, be sentenced to a fine not exceeding $1,000 or imprisonment for a term not exceeding 30 days, or both. Each day that a violation occurs shall be deemed a separate offense and subject to the penalty provisions of this chapter.

E. For purposes of this article, failure to file a registration statement under § 193-13 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 municipality, and failure to provide correct information on the registration statement, or failure to comply with the provisions of such provisions contained herein, shall be deemed to be violations of this article.