As used in this chapter, the following terms
shall have the meanings indicated:
DEPARTMENT
The New Jersey Department of Community Affairs.
OWNER
The holder or holders of title to an abandoned property.
PROPERTY
Any building or structure and the land appurtenant thereto.
PUBLIC OFFICER
The person designated by the City of Hackensack pursuant
to Section 3 of P.L. 1942, c. 112 (N.J.S.A. 40:48-2.5) or any officer
of the City of Hackensack qualified to carry out the responsibilities
set forth in P.L. 2003, c. 210 (N.J.S.A. 55:19-78 et al.) and designated
by the Mayor and Council of Hackensack.
QUALIFIED REHABILITATION ENTITY
An entity organized or authorized to do business under the
New Jersey statutes, which shall have as one of its purposes the construction
or rehabilitation of residential or nonresidential buildings, the
provision of affordable housing, the restoration of abandoned property,
the revitalization and improvement of urban neighborhoods, or similar
purpose, and which shall be well qualified by virtue of its staff,
professional consultants, financial resources, and prior activities
set forth in P.L. 2003, c. 10 (N.J.S.A. 55:19-78 et al.) to carry
out the rehabilitation of vacant buildings in urban area.
A complaint filed pursuant to Section 7 of P.L.
2003, c. 210 (N.J.S.A. 55:19-84) shall include:
A. Documentation that the property is on the municipal
abandoned property list or a certification by the public officer that
the property is abandoned; and
B. A statement by an individual holding appropriate professional
qualifications that there are sound reasons that the building should
be rehabilitated rather than demolished based upon the physical, aesthetic
or historical character of the building or the relationship of the
building to other buildings and lands within its immediate vicinity.
Any petition for reinstatement of the owner's
control and possession of the property filed pursuant to Section 15
of P.L. 2003, c. 210 (N.J.S.A. 55:19-92) shall:
A. Include a plan for completion of the rehabilitation
and reuse of the property consistent with the plan previously approved
by the court;
B. Provide legally binding assurances that the owner
will comply with all conditions of any grant or loan secured by the
City of Hackensack or repay those grants or loans in full, at the
discretion of the maker of the loan or grant; and
C. Be accompanied by payment equal to the sum of:
(1) All City liens outstanding on the property;
(2) All costs incurred by the City of Hackensack in bringing
action with respect to the property;
(3) Any costs incurred by the City of Hackensack not covered
by grants or loans to be assumed or repaid pursuant to this section;
and
(4) Any costs remaining to complete rehabilitation and
reuse of the property, as determined by the public officer, which
payment shall be placed in escrow with the Clerk of the Court pending
disposition of the petition.
If the owner fails to petition for the reinstatement
of control and possession of the property within 30 days after the
entity in possession 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 filed pursuant to Section 15 of
P.L. 2003, c. 210 (N.J.S.A. 55:19-92), upon petition from the entity
in possession, the court may grant the City of Hackensack title or
authorize the City of Hackensack to sell the property, subject to
the provisions of Section 19 of P.L. 2003, c. 210 (N.J.S.A. 55:19-96).
The proceeds paid pursuant to subsection c of
Section 19 of P.L. 2003, c. 210 (N.J.S.A. 55:19-96) shall be distributed
in the following order of priority:
A. The costs and expenses of sale;
B. Other governmental liens;
C. Repayment of principal and interest on any borrowing
or indebtedness incurred by the City of Hackensack and granted priority
lien status pursuant to subsection a of Section 21 of P.L. 2003, c.
210 (N.J.S.A. 55:19-98);
D. A reasonable development fee to the City of Hackensack
consistent with the standards for development fees established for
rehabilitation programs by the New Jersey Department of Community
Affairs or the New Jersey Housing and Mortgage Finance Agency;
E. Other valid liens and security interests, in accordance
with their priority; and
Notwithstanding any provision to the contrary
in P.L. 2003, c. 210 (N.J.S.A. 55:19-78 et al.), a court may in its
discretion deny a lienholder or mortgage holder any or all rights
or remedies afforded lienholders and mortgage holders under P.L. 2003,
c. 210 (N.J.S.A. 55:19-78 et al.), if the court finds that the owner
of a property subject to any of the provisions of P.L. 2003, c. 210
(N.J.S.A. 55:19-78 et al.) owns or controls more than a fifty-percent
interest in, or effective control of, the lienholder or mortgage holder
or that the familial or business relationship between the lienholder
or mortgage holder and the owner precludes a separate interest on
the part of the lienholder or mortgage holder.
With respect to any lien placed against any
real property pursuant to the provisions of Section 1 or Section 3
of P.L. 1942, c. 112 (N.J.S.A. 40:48-2.3 or N.J.S.A. 40:48-2.5) or
Section 1 of P.L. 1989, c. 91 (N.J.S.A. 40:48-2.3a) or any receiver's
lien pursuant to P.L. 2003, c. 295 (N.J.S.A. 2A:42-114 et al.), the
City of Hackensack shall have recourse with respect to the lien against
any asset of the owner of the property, if an individual; against
any asset of any partner, if a partnership; and against any asset
of any owner of a ten-percent interest or greater, if the owner is
any other business organization or entity recognized pursuant to law.
The City of Hackensack 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 an abandoned property list established
by the City of Hackensack pursuant to Section 36 of P.L. 1996, c.
62 (N.J.S.A. 55:19-55). If the City of Hackensack elects to hold a
special tax sale, it shall conduct that sale subject to the following
provisions:
A. The City of Hackensack shall establish criteria for
eligibility to bid on properties at the sale, which may include, but
shall not be limited to: documentation of the bidder's ability to
rehabilitate or otherwise reuse the property consistent with City
plans and regulations; commitments by the bidder to rehabilitate or
otherwise reuse the property consistent with City plans and regulations;
commitments by the bidder to take action to foreclose on the tax lien
by a date certain; and such other criteria as the City of Hackensack
may determine are necessary to ensure that the properties to be sold
will be rehabilitated or otherwise reused in a manner consistent with
the public interest;
B. The City of Hackensack may establish minimum bid requirements
for a special tax sale that may be less than the full amount of the
taxes, interest and penalties due, the amount of such minimum bid
to be at the sole discretion of the City of Hackensack, in order to
ensure that the properties to be sold will be rehabilitated or otherwise
reused in a manner consistent with the public interest;
C. The City of Hackensack may combine properties into
bid packages, and require that bidders place a single bid on each
package, and reject any and all bids on individual properties that
have been included in bid packages;
D. The City of Hackensack may sell properties subject to provisions that, if the purchaser fails to carry out any commitment that has been set forth as a condition of sale pursuant to Subsection
A of this section 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 City of Hackensack, and any amount paid by the purchaser to the City of Hackensack at the special tax sale shall be forfeit to the City;
E. In the event there are two or more qualified bidders
for any property or bid package in a special tax sale, the City of
Hackensack may designate the unsuccessful but qualified bidder whose
bid was closest to the successful bid as an eligible purchaser;
F. In the event that the purchaser of that property or
bid package fails to meet any of the conditions of sale established
by the City of Hackensack pursuant to this section, and their interest
in the property or properties reverts to the City of Hackensack, the
City of Hackensack 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 City of Hackensack 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 City of Hackensack pursuant to Subsection
B,
C or
D of this section. Nothing shall prohibit the City of Hackensack from holding a special tax sale on the same day as a standard or accelerated tax sale.
With respect to any eminent domain proceeding
carried out under Section 37 of P.L. 1996, c. 62 (N.J.S.A. 55:19-56),
the fair market value of the property shall be established on the
basis of an analysis which determines independently:
A. The cost to rehabilitate and reuse the property for
such purpose as is appropriate under existing planning and zoning
regulations governing its reuse or to demolish the existing property
and construct a new building on the site, including all costs ancillary
to rehabilitation such as, but not limited to, marketing and legal
costs;
B. The realistic market value of the reused property
after rehabilitation or new construction, taking into account the
market conditions particular to the neighborhood or subarea of the
City of Hackensack in which the property is located; and
C. The extent to which the cost exceeds or does not exceed
the market value after rehabilitation, or demolition and new construction,
and the extent to which any "as is" value of the property prior to
rehabilitation can be added to the cost of rehabilitation or demolition
and new construction without the resulting combined cost exceeding
the market value as separately determined. If the appraisal finds
that the cost of rehabilitation or demolition and new construction,
as appropriate, exceeds the realistic market value after rehabilitation
or demolition and new construction, there shall be a rebuttable presumption
in all proceedings under this subsection that the fair market value
of the abandoned property is zero, and that no compensation is due
the owner.
If a property, which an entity other than the
City of Hackensack has purchased or taken assignment from the City
of Hackensack of a tax sale certificate, is placed on the abandoned
property list, the property shall be removed from the list if the
owner of the certificate pays all City 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.