[HISTORY: Adopted by the Township of Howell 8-20-2013 by Ord. No.
O-13-27. Amendments noted where applicable.]
Definitions relating to abandoned property (from N.J.S.A. 55:19-54):
Any property that is determined to be abandoned pursuant
to P.L. 2003, c. 210 (N.J.S.A. 55:19-78 et seq.).
A person designated or appointed by the municipal governing
body pursuant to Section 3 of P.L. 1942, c. 112 (N.J.S.A. 40:48-2.5).
The Code Enforcement Official(s) and Construction Official shall serve
as the public officer for purposes of carrying out this article.
Inventory of abandoned property; list to be maintained; publication
in official newspaper; notice to owner of record; challenge by owner
(from N.J.S.A. 55:19-55). The Township of Howell may direct the public
officer to identify abandoned property for the purpose of establishing
an abandoned property list throughout the Township, or within those
parts of the Township as the governing body may designate. Each item
of abandoned property so identified shall include the tax block and
lot number, the name of the owner of record, if known, and the street
address of the lot.
A.
The public officer shall establish and maintain a list of abandoned
property, to be known as the "abandoned property list." The Township
of Howell may add properties to the abandoned property list at any
time and may delete properties at any time when the public officer
finds that the property no longer meets the definition of an abandoned
property. An interested party may request that a property be included
on the abandoned property list following that procedure set forth
in Section 31 of P.L. 2003, c. 210 (N.J.S.A. 55:19-105). The abandoned
property list shall apply to the Township of Howell as a whole.
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 Howell 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 in accordance with the provisions
of Section 29 of P.L. 2003, c. 210 (N.J.S.A. 55:19-103).
C.
The public officer shall establish the abandoned property list or
any additions thereto by publication in the official newspaper of
the Township of Howell, which publication shall constitute public
notice, and, within 10 days after publication, shall send a notice
by certified mail, return receipt requested, and by regular mail to
the owner of record of every property included on the list. The published
and mailed notices shall identify property determined to be abandoned,
setting forth the owner of record, if known, the tax lot and block
number and street address. The public 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 Subsection d of N.J.S.A. 54:4-64. 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 Section 5 of P.L. 1942, c. 112 (N.J.S.A. 40:48-2.7). The
mailed notice shall indicate the factual basis for the public officer's
finding that the property is abandoned property as that term is defined
in Section 35 of P.L. 1996, c. 62 (N.J.S.A. 55:19-54) and the rules
and regulations promulgated thereunder, specifying 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 public officer in the
office of the county clerk or register of deeds and mortgages, as
the case may be, of the county wherein the property is situate. This
filing shall have the same force and effect as a notice of lis pendens
under N.J.S.A. 2A:15-6. The notice shall be indexed by the name of
the property owner as defendant and the name of the Township as plaintiff,
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 determined pursuant to Subsection B of this section by appealing that determination to the public officer 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 public officer shall have 40 days from the date upon which notice was published or posted, whichever is later, to challenge the inclusion of a property on the abandoned property list. For good cause shown, the public officer shall 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 pursuant to Subsection D of this section, the public officer shall schedule a hearing 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 by the property owner averring that the property is not abandoned and stating the reasons for such averment, 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, and repair invoices, bills and construction contracts. The sole grounds for appeal shall be that the property in question is not abandoned property as that term is defined in Section 35 of P.L. 1996, c. 62 (N.J.S.A. 55:19-54). The public officer 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 with the public officer pursuant to Subsection E of this section, by instituting, in accordance with the New Jersey Court Rules, a summary proceeding in the Superior Court, Law Division, sitting in the county in which the property is located, which action shall be tried de novo. Such action shall be instituted within 20 days of the date of the notice of decision mailed by the public officer pursuant to Subsection E of this section. The sole grounds for appeal shall be that the property in question is not abandoned property as that term is defined in Section 35 of P.L. 1996, c. 62 (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 public officer shall promptly remove any property from the abandoned
property list that has been determined not to be abandoned on appeal.
G.
The abandoned property list shall become effective, and the Township
of Howell shall have the right to pursue any legal remedy with respect
to properties on the abandoned property list at such time as any one
property has been placed on the list in accordance with the provisions
of this section, upon the expiration of the period for appeal with
respect to that property or upon the denial of an appeal brought by
the property owner.
Sale of tax lien on abandoned property; remediation costs (from
N.J.S.A. 55:19-56).
A.
Notwithstanding 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 six or more quarters as of the date of expiration of
the right to appeal 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 in 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, as appropriate.
The Township of Howell 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 Section 36 of
P.L. 1996, c. 62 (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 public officer may waive a requirement to post a bond imposed
by the Township of Howell for any purchaser, assignee or transferee
of a tax sale certificate that provides documentation acceptable to
the public officer that the purchaser, assignee or transferee is a
qualified rehabilitation entity as defined in Section 3 of P.L. 2003,
c. 210 (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 pursuant to N.J.S.A.
54:4-67 of the Township of Howell in effect for the time period when
the amounts were expended. The tax sale certificate purchaser, assignee
or transferee, under the auspices and with the authority of the Township
of Howell, 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 Howell harmless is filed with the public officer. If the tax sale
certificate is not purchased at the initial auction of the tax sale
certificate and the Township of Howell purchases the certificate pursuant
to N.J.S.A. 54:5-34, then the Township of Howell is authorized and
empowered to convey and transfer to the Authority or any of its subsidiaries,
without receiving compensation therefor, all of its rights, title
and interest in that certificate; however, any portion of the amount
paid to the Tax Collector to redeem the tax sale certificate that
represents tax or other Township lien delinquencies and subsequent
Township liens, including interest, shall be returned by the Tax Collector
of the Township of Howell.
B.
Remediation.
(1)
If the Township of Howell 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 lis pendens notice under Subsection d of Section 36
of P.L. 1996, c. 62 (N.J.S.A. 55:19-55), that entity 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 of Howell or Authority
or its subsidiary, as appropriate, 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 Howell or Authority or its subsidiaries,
as appropriate, in order to ensure performance. The amount and conditions
of the bond shall be determined by the public officer.
(2)
The cost of remediation incurred by the Township of Howell pursuant
to this subsection, 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
of Howell, except for Township taxes, liens and assessments and any
lien imposed pursuant to the Spill Compensation and Control Act, P.L.
1976, c. 141 (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 county clerk or register
of deeds and mortgages, as appropriate, in the county in which the
property is located.
C.
Failure to remediate.
(1)
Failure of an owner or lienholder to remove a property from the abandoned
property list within the period of time for appeal of inclusion of
the property on the list pursuant to Subsection E of Section 36 of
P.L. 1996, c. 62 (N.J.S.A. 55:19-55), shall be prima facie evidence
of the intent of the owner to continue to maintain the property as
abandoned property.
Removal of property from list of abandoned properties; remediation
(from N.J.S.A. 55:19-57).
A.
An owner may remove a property from the list of abandoned properties
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 Section 36 of P.L. 1996, c. 62 (N.J.S.A. 55:19-55) and
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 public
officer stating that the cash or bond adequately covers the cost of
the cleanup; or
(2)
By demonstrating to the satisfaction of the public officer that the
conditions rendering the property abandoned have been remediated in
full; provided, however, that where the public officer finds that
the owner is actively engaged in remediating the conditions because
of which the property was determined to be abandoned pursuant to Section
36 of P.L. 1996, c. 62 (N.J.S.A. 55:19-55), as evidenced by significant
rehabilitation activity on the property, the public officer may grant
an extension of time of not more than 120 days 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
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.
Acquisition of tax sale certificate for abandoned property;
action to foreclose right of redemption (from N.J.S.A. 55:19-58).
A.
When a person other than the Township of Howell 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 six months following the date
of the sale of the tax sale certificate.
B.
When the Township of Howell 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 Section 36 of P.L. 1996, c. 62 (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 pursuant to Section 36 of
P.L. 1996, c. 62 (N.J.S.A. 55:19-56), have been remedied in full.
Entry of final judgment barring right of redemption; grounds
for reopening judgment (from N.J.S.A. 55:19-59). Once a final judgment
barring the right of redemption with respect to a property on the
list of abandoned properties has been recorded, no court shall reopen
such judgment at any time except on the grounds of lack of jurisdiction
or fraud in the conduct of the action; in any such proceeding, the
provisions of P.L. 1996, c. 62 (N.J.S.A. 55:19-20 et seq.), shall
be construed liberally in favor of the purchaser, assignee or transferee
of the tax sale certificate.
A.
Abandoned properties create a wide range of problems for the Township
of Howell, fostering criminal activity, creating public health problems
and otherwise diminishing the quality of life for residents and business
operators in those areas.
B.
Abandoned properties diminish the property values of neighboring
properties and have a negative effect on the quality of life of adjacent
property owners, increasing the risk of property damage through arson
and vandalism and discouraging neighborhood stability and revitalization.
C.
For these reasons, abandoned properties are presumptively considered
to be nuisances, in view of their negative effects on nearby properties
and the residents or users of those properties.
D.
The continued presence of abandoned properties in the Township of
Howell acts as a significant barrier to the Township's continued progressive
development and revitalization.
E.
The responsibility of a property owner to maintain a property in
sound condition and prevent it from becoming a nuisance to others
extends to properties which are not in use and "demolition by neglect,"
leading to the deterioration and loss of the property, or failure
by an owner to comply with legitimate orders to demolish, stabilize
or otherwise repair his or her property creates a presumption that
the owner has abandoned the property.
[NOTE: See also § 49-1, Definitions. (This section adopted from N.J.S.A. 55:19-80.)] As used in this article, the following terms shall have the meanings indicated:
The New Jersey Department of Community Affairs.
Any person or entity holding a note, mortgage or other interest
secured by the building or any part thereof.
The holder or holders of title to an abandoned property.
Any building or structure and the land appurtenant thereto.
The person designated by the Township of Howell pursuant to § 49-1 of this chapter or any officer of the Township of Howell qualified to carry out the responsibilities set forth in P.L. 2003, c. 210 (N.J.S.A. 55:19-78 et seq.).
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 seq.), to carry
out the rehabilitation of vacant buildings in urban areas.
[NOTE: Adopted from N.J.S.A. 55:19-81.]
A.
Except as provided in Section 6 of P.L. 2003, c. 210 (N.J.S.A. 55:19-83),
any property that has not been legally occupied for a period of six
months and which meets any one of the following additional criteria
may be deemed to be abandoned property upon a determination by the
public officer that:
(1)
The property is in need of rehabilitation in the reasonable judgment
of the public officer, and no rehabilitation has taken place during
that six-month period;
(2)
Construction was initiated on the property and was discontinued prior
to completion, leaving the building unsuitable for occupancy, and
no construction has taken place for at least six months as of the
date of a determination by the public officer pursuant to this section;
(3)
At least one installment of property tax remains unpaid and delinquent
on that property in accordance with Chapter 4 of Title 54 of the Revised
Statutes as of the date of a determination by the public officer pursuant
to this section; or
(4)
The property has been determined to be a nuisance by the public officer
in accordance with Section 5 of P.L. 2003, c. 210 (N.J.S.A. 55:19-82).
B.
A property which contains both residential and nonresidential space may be considered abandoned pursuant to P.L. 2003, c. 210 (N.J.S.A. 55:19-78 et seq.), so long as 2/3 or more of the total net square footage of the building was previously legally occupied as residential space and none of the residential space has been legally occupied for at least six months at the time of the determination of abandonment by the public officer and the property meets the criteria of either Subsection A(1) or (4) of this section.
[NOTE: Adopted from N.J.S.A. 55:19-82.]
A.
A property may be determined to be a nuisance if:
(1)
The property has been found to be unfit for human habitation, occupancy
or use pursuant to Section 1 of P.L. 1942, c. 112 (N.J.S.A. 40:48-2.3);
(2)
The condition and vacancy of the property materially increases the
risk of fire to the property and adjacent properties;
(3)
The property is subject to unauthorized entry leading to potential
health and safety hazards; the owner has failed to take reasonable
and necessary measures to secure the property; or the Township of
Howell has secured the property in order to prevent such hazards after
the owner has failed to do so;
(4)
The presence of vermin or the accumulation of debris, uncut vegetation
or physical deterioration of the structure or grounds have created
potential health and safety hazards and the owner has failed to take
reasonable and necessary measures to remove the hazards; or
(5)
The dilapidated appearance or other condition of the property materially
affects the welfare, including the economic welfare, of the residents
of the area in close proximity to the property, and the owner has
failed to take reasonable and necessary measures to remedy the conditions.
[NOTE: Adopted from N.J.S.A. 55:19-83.]
A.
If an entity other than the Township of Howell 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 placed on the abandoned property list pursuant
to Section 36 of P.L. 1996, c. 62 (N.J.S.A. 55:19-55), if: 1) the
owner of the certificate has continued to pay all Township of Howell
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 b of N.J.S.A. 54:5-86, as appropriate, and
diligently pursues foreclosure proceedings in a timely fashion thereafter.
B.
A property which is used on a seasonal basis shall be deemed to be
abandoned only if the property meets any two of the additional criteria
set forth in Section 4 of P.L. 2003, c. 210 (N.J.S.A. 55:19-81).
C.
A determination that a property is abandoned property under the provisions
of P.L. 2003, c. 210 (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.
D.
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 public officer or the Tax Collector shall, in a timely fashion, provide the requester with a certification that the property fulfills the definition of abandoned according to the criteria set forth in Sections 4 and 5 of P.L. 2003, c. 210 (N.J.S.A. 55:19-81 and 55:19-82).
[NOTE: Adopted from N.J.S.A. 55:19-84.]
A.
A summary action or otherwise to transfer possession and control
of abandoned property in need of rehabilitation to the Township of
Howell may be brought by the Township of Howell in the Superior Court
in the county in which the property is situated. If the court shall
find that the property is abandoned pursuant to Section 4 of P.L.
2003, c. 210 (N.J.S.A. 55:19-81), and the owner or party in interest
has failed to submit and initiate a rehabilitation plan, then the
court may authorize the Township of Howell to take possession and
control of the property and develop a rehabilitation plan.
B.
The Township of Howell granted possession and control may commence
and maintain those further proceedings for the conservation, protection
or disposal of the property or any part thereof that are required
to rehabilitate the property, necessary to 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 of the property
as provided in Section 15 of P.L. 2003, c. 210 (N.J.S.A. 55:19-92).
C.
Failure by the owner, mortgage holder or lienholder to submit plans
for rehabilitation to the Township of Howell, obtain appropriate construction
permits for rehabilitation or, in the alternative, submit formal applications
for funding the cost of rehabilitation to local, state or federal
agencies providing such funding within that six-month period shall
be deemed prima facie evidence that the owner has failed to take any
action to further the rehabilitation of the property.
[NOTE: Adopted from N.J.S.A. 55:19-85.] 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.
[NOTE: Adopted from N.J.S.A. 55:19-86.]
A.
Within 10 days of filing a complaint pursuant to P.L. 2003, c. 210
(N.J.S.A. 55:19-78 et seq.), the plaintiff shall file a notice of
lis pendens with the county recording officer of the county within
which the building is located.
B.
At least 30 days before filing the complaint, the Township of Howell
shall serve a notice of intention to take possession of an abandoned
building. The notice shall inform the owner and interested parties
that the property has not been legally occupied for six months and
of those criteria that led to a determination of abandonment pursuant
to Section 4 of P.L. 2003, c. 210 (N.J.S.A. 55:19-81).
(1)
The notice shall provide that unless the owner or a party in interest
prepares and submits a rehabilitation plan to the appropriate Township
of Howell officials, the Township of Howell will seek to gain possession
of the building to rehabilitate the property and the associated cost
shall be a lien against the property, which may be satisfied by the
sale of the property, unless the owner applies to the court for reinstatement
of control of the property as provided in Section 15 of P.L. 2003,
c. 210 (N.J.S.A. 55:19-92).
(2)
After the complaint is filed, the complaint shall be served on the
parties in interest in accordance with the New Jersey Rules of Court.
C.
After serving the notice of intent pursuant to Subsection B of this section, the Township of Howell or its designee may enter upon that property after written notice to the owner by certified mail, return receipt requested, in order to secure, stabilize or repair the property, or in order to inspect the property for purposes of preparing the plan to be submitted to the court pursuant to Section 12 of P.L. 2003, c. 210 (N.J.S.A. 55:19-89).
[NOTE: Adopted from N.J.S.A. 55:19-87.]
A.
Any owner may defend against a complaint filed pursuant to Section
7 of P.L. 2003, c. 210 (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 public officer or the court to be the projected
cost of rehabilitation. 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.
B.
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.
C.
Court approval.
(1)
The court shall approve any plan that, in the judgment of the court,
is realistic and likely to result in the expeditious rehabilitation
and reuse of the property which is the subject of the complaint.
(2)
If the court approves the owner's plan, then it may appoint the public
officer to act as monitor of the owner's compliance. If the owner
fails to carry out any step in the approved plan, then the Township
of Howell may apply to the court to have the owner's bond forfeited,
possession of the building transferred to the Township of Howell to
complete the rehabilitation plan and authorization to use the bond
proceeds for rehabilitation of the property.
(3)
The owner shall provide quarterly reports to the Township of Howell
on its activities and progress toward rehabilitation and reuse of
the property. The owner shall provide those reports to the court on
its activities that the court determines are necessary.
D.
The court may reject a plan and bond if it finds that the plan does
not represent a realistic and expeditious means of ensuring the rehabilitation
of the property or that the owner or his representatives or agents,
or both, lack the qualifications, background or other criteria necessary
to ensure that the plan will be carried out successfully.
[NOTE: Adopted from N.J.S.A. 55:19-88.]
A.
If an owner is unsuccessful in defending against a complaint filed
pursuant to Section 7 of P.L. 2003, c. 210 (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 Section 10 of P.L. 2003, c. 210 (N.J.S.A.
55:19-87). The plan shall be submitted within 60 days after the court
has rejected 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's or lienholder's plan,
it shall designate that party to be in possession of the property
for purposes of ensuring its rehabilitation and reuse and may appoint
the public officer to act as monitor of the party's compliance.
(1)
The mortgage holder or lienholder, as the case may be, shall provide
quarterly reports to the court and the Township of Howell on its activities
and progress toward rehabilitation and reuse of the property.
(2)
If the mortgage holder or lienholder fails to carry out any material
step in the approved plan, then the public officer shall notify the
court, which may order the bond forfeit, grant the Township of Howell
possession of the property, and authorize the Township of Howell to
use the proceeds of the bond for rehabilitation of the property.
B.
Any sums incurred or advanced for the purpose of rehabilitating the property by a mortgage holder or lienholder granted possession of a property pursuant to Subsection A of this section, including court costs and reasonable attorney's fees, may be added to the unpaid balance due 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.
[NOTE: Adopted from N.J.S.A. 55:19-89.]
A.
If no mortgage holder or lienholder meets the conditions of Section
11 of P.L. 2003, c. 210 (N.J.S.A. 55:19-88), then the Township of
Howell shall submit a plan to the court which conforms with the provisions
of Subsection b of Section 10 of P.L. 2003, c. 210 (N.J.S.A. 55:19-87).
The plan shall designate the entity which shall implement the plan,
which may be the Township of Howell or that entity designated in accordance
with the provisions of Section 13 of P.L. 2003, c. 210 (N.J.S.A. 55:19-90).
B.
The court shall grant the Township of Howell possession of the property
if it finds that:
(1)
The proposed rehabilitation and reuse of the property is appropriate
and beneficial;
(2)
The Township of Howell is qualified to undertake the rehabilitation
and reuse of the property; and
(3)
The plan submitted by the Township of Howell represents a realistic
and timely plan for the rehabilitation and reuse of the property.
C.
The Township of Howell shall take all steps necessary and appropriate
to further the rehabilitation and reuse of the property consistent
with the plan submitted to the court. In making its findings pursuant
to this section, the court may consult with qualified parties, including
the Department of Community Affairs, and, upon request by a party
in interest, may hold a hearing on the plan.
D.
Where either a redevelopment plan pursuant to P.L. 1992, c. 79 (N.J.S.A.
40A:12A-1 et seq.), or a neighborhood revitalization plan pursuant
to P.L. 2001, c. 415 (N.J.S.A. 52:27D-490 et seq.), has been adopted
or approved by the Department of Community Affairs, as appropriate,
encompassing the property which is the subject of a complaint, the
court shall make a further finding that the proposed rehabilitation
and reuse of the property are not inconsistent with any provision
of either plan.
[NOTE: Adopted from N.J.S.A. 55:19-90.]
A.
The Township of Howell may exercise its rights under P.L. 2003, c.
210 (N.J.S.A. 55:19-78 et seq.), directly, or may designate a qualified
rehabilitation entity to act as its designee for the purpose of exercising
the Township's rights where that designation will further the rehabilitation
and reuse of the property consistent with the Township's plans and
objectives. This designation shall be made by resolution of the Mayor
and the Council of the Township of Howell. The governing body or Mayor,
as the case may be, may delegate this authority to the public officer.
B.
Regardless of whether the Township of Howell exercises its rights
directly or designates a qualified rehabilitation entity pursuant
to this section, while in possession of a property pursuant to P.L.
2003, c. 210 (N.J.S.A. 55:19-78 et seq.), the Township of Howell shall
maintain, safeguard, and maintain insurance on the property. Notwithstanding
the Township's possession of the property, nothing in P.L. 2003, c.
210 (N.J.S.A. 55:19-78 et seq.), shall be deemed to relieve the owner
of the property of any civil or criminal liability or any duty imposed
by reason of acts or omissions of the owner.
[NOTE: Adopted from N.J.S.A. 55:19-91.]
A.
If the Township of Howell has been granted possession of a property
pursuant to Section 12 of P.L. 2003, c. 210 (N.J.S.A. 55:19-89), the
Township shall be deemed to have an ownership interest in the property
for the purpose of filing plans with public agencies and boards, seeking
and obtaining construction permits and other approvals, and submitting
applications for financing or other assistance to public or private
entities.
(1)
For the purposes of any state program of grants or loans, including
but not limited to programs of the Department of Community Affairs
and the New Jersey Housing and Mortgage Finance Agency, possession
of a property under this section shall be considered legal control
of the property.
(2)
Notwithstanding the granting of possession to the Township of Howell,
nothing in P.L. 2003, c. 210 (N.J.S.A. 55:19-78 et seq.), shall be
deemed to relieve the owner of the property of any obligation the
owner or any other person may have for the payment of taxes or other
Township of Howell liens and charges, or mortgages or liens to any
party, whether those taxes, charges or liens are incurred before or
after the granting of possession.
(3)
The granting of possession shall not suspend any obligation the owner
may have as of the date of the granting of possession for payment
of any operating or maintenance expense associated with the property,
whether or not billed at the time of the granting of possession.
B.
The court may approve the borrowing of funds by the Township of Howell
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 shall find
that: 1) the Township of Howell sought to obtain the necessary financing
from the senior lienholder, which declined to provide such financing
on reasonable terms; 2) the Township of Howell 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
in the office of the clerk of the county in which the property is
located. For the purposes of this section, the cost of rehabilitation
shall include reasonable nonconstruction costs such as architectural
fees or construction permit fees customarily included in the financing
of the rehabilitation of residential property.
C.
Where the Township of Howell has been granted possession by the court
in the name of the Township, the Township of Howell may seek the approval
of the court to assign its rights to another entity, which approval
shall be granted by the court when it finds that: 1) the entity to
which the Township's rights will be assigned is a qualified rehabilitation
entity; and 2) the assignment will further the purposes of this section.
D.
Where the Township of Howell has designated a qualified rehabilitation
entity to act on its behalf, the qualified rehabilitation entity shall
provide quarterly reports to the Township of Howell on its activities
and progress toward rehabilitation and reuse of the property. The
Township of Howell 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 of Howell or
its designee has failed to take diligent action toward rehabilitation
of the property within one year from the grant of possession, then
the court may request the Township of Howell to designate another
qualified rehabilitation entity to exercise its rights, or if the
Township of Howell fails to do so, may terminate the order of possession
and return the property to its owner.
E.
The Township of Howell 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 of Howell 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 public officer attesting that rehabilitation can realistically
be anticipated to be complete within that time period and a statement
setting forth such actions as it plans to undertake to ensure that
reuse of the property takes place consistent with the plan.
[NOTE: Adopted from N.J.S.A. 55:19-92.]
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 grant
of possession, but no later than 30 days after the Township of Howell
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 of Howell has filed
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 of Howell, or affect any of the terms
or conditions under which the Township of Howell has applied for or
received financing for the rehabilitation of the property.
[NOTE: Adopted from N.J.S.A. 55:19-93.] 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 Township of Howell
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 Township liens outstanding on the property;
(2)
All costs incurred by the Township of Howell in bringing action with
respect to the property;
(3)
Any costs incurred by the Township of Howell 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.
[NOTE: Adopted from N.J.S.A. 55:19-94.]
A.
Prior to the granting of a petition on the part of the owner by the
court pursuant to Section 15 of P.L. 2003, c. 210 (N.J.S.A. 55:19-92),
the owner may be required to post a bond or other security in an amount
determined by the court, after consultation with the public officer,
as likely to ensure that the owner will continue to maintain the property
in sound condition. That bond or other security shall be made available
to the Township of Howell to make any repair on the property in the
event of a code violation which is not corrected in timely fashion
by the owner. The bond or other security may be forfeit in full in
the event that the owner fails to comply with any requirement imposed
as a condition of the reinstatement petition filed pursuant to Section
15 of P.L. 2003, c. 210 (N.J.S.A. 55:19-92).
B.
The owner may seek approval of the court to be relieved of this requirement
after five years, which shall be granted if the court finds that the
owner has maintained the property in good repair during that period,
that no material violations affecting the health and safety of the
tenants have occurred during that period, and that the owner has remedied
other violations in a timely and expeditious fashion.
[NOTE: Adopted from N.J.S.A. 55:19-95.] 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 Township of
Howell title or authorize the Township of Howell to sell the property,
subject to the provisions of Section 19 of P.L. 2003, c. 210 (N.J.S.A.
55:19-96).
[NOTE: Adopted from N.J.S.A. 55:19-96.]
A.
Where the Township of Howell 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.
(1)
The court may authorize the Township of Howell 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.
(2)
The proceeds of the purchase of the property shall be distributed
as set forth in Section 20 of P.L. 2003, c. 210 (N.J.S.A. 55:19-97).
B.
The Township of Howell may seek approval of the court to sell the
property to a third party when the court finds that such conveyance
will further the effective and timely rehabilitation and reuse of
the property.
C.
Upon approval by the court, the Township of Howell 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 Section 20 of P.L. 2003,
c. 210 (N.J.S.A. 55:19-97).
[NOTE: Adopted from N.J.S.A. 55:19-97.] 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 Township of Howell 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 Township of Howell 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
F.
The owner.
[NOTE: Adopted from N.J.S.A. 55:19-98.]
A.
The public officer, with the approval of the court, may place a lien
on the property to cover any costs of the Township of Howell in connection
with a proceeding under P.L. 2003, c. 210 (N.J.S.A. 55:19-78 et seq.),
incurred prior to the grant by the court of an order of possession
under P.L. 2003, c. 210 (N.J.S.A. 55:19-78 et seq.), 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.
With the exception of the holding of special tax sales pursuant to
Section 24 of P.L. 2003, c. 210 (N.J.S.A. 55:19-101), the remedies
available under P.L. 2003, c. 210 (N.J.S.A. 55:19-78 et seq.), shall
be available to the Township of Howell with respect to any abandoned
property, whether or not the Township of Howell has established an
abandoned property list as provided in Section 36 of P.L. 1996, c.
62 (N.J.S.A. 55:19-55), and whether or not the property has been included
on any such list.
[NOTE: Adopted from N.J.S.A. 55:19-99.] Notwithstanding any
provision to the contrary in P.L. 2003, c. 210 (N.J.S.A. 55:19-78
et seq.), 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 seq.), 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 seq.), 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.
[NOTE: Adopted from N.J.S.A. 55:19-100.] 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
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 seq.), the Township of Howell 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.
[NOTE: Adopted from N.J.S.A. 55:19-101.] The Township of Howell
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 Township of Howell pursuant to Section
36 of P.L. 1996, c. 62 (N.J.S.A. 55:19-55). If the Township of Howell
elects to hold a special tax sale, it shall conduct that sale subject
to the following provisions:
A.
The Township of Howell 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 Township plans and
regulations; commitments by the bidder to rehabilitate or otherwise
reuse the property consistent with Township 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 Township of Howell
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 Township of Howell 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 Township of Howell, 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 Township of Howell 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 Township of Howell 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 Township of Howell, and any amount paid by the purchaser to the Township of Howell at the special tax sale shall be forfeit to the Township.
E.
In the event there are two or more qualified bidders for any property
or bid package in a special tax sale, the Township of Howell 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 Township
of Howell pursuant to this section, and his interest in the property
or properties reverts to the Township of Howell, the Township of Howell
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 Howell 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 of Howell pursuant to Subsection B, C or D of this section. Nothing shall prohibit the Township of Howell from holding a special tax sale on the same day as a standard or accelerated tax sale.
[NOTE: Adopted from N.J.S.A. 55:19-102.] 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 Township of Howell 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.
[NOTE: Adopted from N.J.S.A. 55:19-103.] If a property, which
an entity other than the Township of Howell has purchased or taken
assignment from the Township of Howell 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 Township 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.
[NOTE: Adopted from N.J.S.A. 55:19-105.]
A.
Any interested party may submit in writing a request to the public
officer that a property be included on the abandoned property list
prepared pursuant to Section 36 of P.L. 1996, c. 62 (N.J.S.A. 55:19-55),
specifying the street address and block and lot number of the property
to be included and the grounds for its inclusion. Within 30 days of
receipt of any such request, the public officer shall provide a written
response to the party, either indicating that the property will be
added to the list of abandoned properties or, if not, the reasons
for not adding the property to the list. For the purposes of this
section, "interested party" shall include any resident of the Township
of Howell, any owner or operator of a business within the Township
of Howell, or any organization representing the interests of residents
or engaged in furthering the revitalization and improvement of the
neighborhood in which the property is located.
B.
Any interested party may participate in any redetermination hearing
held by the public officer pursuant to Subsection e of Section 36
of P.L. 1996, c. 62 (N.J.S.A. 55:19-55). Upon written request by any
interested party, the public officer shall provide the party with
at least 20 days' notice of any such hearing. The party shall provide
the public officer with notice at least 10 days before the hearing
of its intention to participate and the nature of the testimony or
other information that it proposes to submit at the hearing.
