[Adopted 8-13-2015 by Ord. No. 10-2015]
A.
Whereas, the present mortgage foreclosure crisis has serious negative implications for all communities trying to manage the consequences of property vacancies and abandoned real properties; and whereas, the Borough of Clayton ("Borough") recognizes an increase in the number of vacancies and abandoned properties located throughout the Borough; and whereas, the Borough is challenged to identify and locate owners or foreclosing parties who can maintain the properties that are in the foreclosure process or that have been foreclosed; and whereas, the Borough finds that the presence of vacant and abandoned properties can lead to a decline in property value, create attractive nuisances and lead to a general decrease in neighborhood and community aesthetic; and whereas, the Borough has already adopted property maintenance codes to regulate building standards for the exterior of structures and the condition of the property as a whole; and whereas, the Borough desires to amend the Borough's Code in order to participate in the countywide registration program established by Gloucester County and administered by Community Champions Corporation that will identify a contact person to address safety and aesthetic concerns to minimize the negative impacts and blighting conditions that occur as a result of the foreclosures; and whereas, the Borough has a vested interest in protecting neighborhoods against decay caused by vacant and abandoned properties and concludes that it is in the best interests of the health, safety, and welfare of its citizens and residents to impose registration and certification requirements on abandoned and vacant properties located within the Borough; and whereas, the Borough of Clayton had adopted Ordinance No. 12-2013 for the creation of a new section titled "Abandoned Property - Registration Requirements" within Chapter 74 of the Code of the Borough of Clayton; and whereas, the Borough has determined to repeal adopted Ordinance No. 12-2013 and adopt a new ordinance to address abandoned/vacant properties within the Borough of Clayton; now, therefore, be it ordained by the Mayor and Council of the Borough of Clayton that Ordinance No. 12-2013 is hereby repealed in its entirety and a new article is hereby created within Chapter 74 to be titled "Abandoned/Vacant Property – Registration Requirements" to read as follows.
B.
The foregoing
"whereas" clauses are hereby ratified and confirmed as being true
and correct and are hereby made a specific part of this article upon
the adoption hereof.
It is the purpose and intent of the Borough to establish a process
to address the deterioration and blight of Borough neighborhoods caused
by an increasing amount of abandoned, foreclosed or distressed real
property located within the Borough, and to identify, regulate, limit
and reduce the number of abandoned properties located within the Borough.
It is the Borough's further intent to participate in the countywide
registration program established by Gloucester County and administered
by Community Champions Corporation as a mechanism to protect neighborhoods
from becoming blighted due to the lack of adequate maintenance and
security of abandoned and foreclosed properties.
The following words, terms and phrases, when used in this article,
shall have the meanings ascribed to them in this section, except where
the context clearly indicates a different meaning:
Any real property located in the Borough, whether vacant
or occupied, that is in default on a mortgage, has had a lis pendens
filed against it by the lender holding a mortgage on the property,
is subject to an ongoing foreclosure action by the lender, is subject
to an application for a tax deed or pending Tax Assessor's lien sale,
or has been transferred to the lender under a deed in lieu of foreclosure.
The designation of a property as "abandoned" shall remain in place
until such time as the property is sold or transferred to a new owner,
the foreclosure action has been dismissed, and any default on the
mortgage has been cured.
A property that is accessible through a comprised/breached
gate, fence, wall, etc., or a structure that is unsecured and/or breached
in such a way as to allow access to the interior space by unauthorized
persons.
To include, but not be limited to, the Borough's Unified
Development Ordinance,[1] the Borough's Code Book of Ordinances ("Borough Code Book"),
and the New Jersey Building Code.
Properties that have broken or severely damaged windows, doors,
walls, or roofs which create hazardous conditions and encourage trespassing;
Properties whose maintenance is not in conformance with the
maintenance of other neighboring properties causing a decrease in
value of the neighboring properties;
Properties cited for a public nuisance pursuant to the Borough
Code; or
Properties that endanger the public's health, safety, or welfare
because the properties or improvements thereon are dilapidated, deteriorated,
or violate minimum health and safety standards or lack maintenance
as required by the Borough Code and the Unified Development Ordinance.[2]
Any law enforcement officer, housing official, building official,
zoning official, code enforcement official, fire inspector or building
inspector, or other person authorized by the Borough to enforce the
applicable code(s).
Any person, legal entity or other party having any ownership
interest, whether legal or equitable, in real property. This term
shall also apply to any person, legal entity or agent responsible
for the construction, maintenance or operation of the property involved.
A local property manager, property maintenance company or
similar entity responsible for the maintenance of abandoned real property.
Any building or structure that is not legally occupied.
These sections shall be considered cumulative and not superseding
or subject to any other law or provision for the same, but rather
to be an additional remedy available to the Borough above and beyond
any other state, county or local provisions for the same.
Pursuant to the provisions of this article, the Borough or designee
shall participate in the county-wide registration program established
by Gloucester County and administered by Community Champions Corporation
cataloging each abandoned property within the Borough, containing
the information required by this article.
A.
Any mortgagee who holds a mortgage on real property located within
the Borough of Clayton shall perform an inspection of the property
to determine vacancy or occupancy, upon default by the mortgagor.
The mortgagee shall, within 10 days of the inspection, register the
property with the Code Enforcement Officer, or other designee, on
forms or website access provided by the Borough, and indicate whether
the property is vacant or occupied. A separate registration is required
for each property, whether it is found to be vacant or occupied.
B.
If the property is occupied but remains in default, it shall be inspected
by the mortgagee or his designee monthly until:
(1)
The mortgagor or other party remedies the default; or
(2)
It is found to be vacant or shows evidence of vacancy at which time
it is deemed abandoned, and the mortgagee shall, within 10 days of
that inspection, update the property registration to a vacancy status
on forms provided by the Borough.
C.
Registration pursuant to this section shall contain the name of the
mortgagee and the server, the direct mailing address of the mortgagee
and the server, a direct contact name and telephone number for both
parties, facsimile number and e-mail address for both parties, the
folio or tax number, and the name and twenty-four-hour contact telephone
number of the property management company responsible for the security
and maintenance of the property.
D.
A nonrefundable annual registration fee in the amount of $300 per
property shall accompany the registration form or website registration.
E.
All registration fees must be paid directly from the mortgagee, servicer,
trustee, or owner. Third-party registration fees are not allowed without
the consent of the Borough and/or its authorized designee.
F.
This section shall also apply to properties that have been the subject
of a foreclosure sale where the title was transferred to the beneficiary
of a mortgage involved in the foreclosure and any properties transferred
under a deed in lieu of foreclosure/sale.
G.
Properties subject to this section shall remain under the annual
registration requirement and the inspection, security and maintenance
standards of this section as long as they remain vacant or in default.
H.
Any person or legal entity that has registered a property under this
section must report any change of information contained in the registration
within 10 days of the change.
I.
Failure of the mortgagee and/or owner to properly register or to
modify the registration form from time to time to reflect a change
of circumstances as required by this article is a violation of the
article and shall be subject to enforcement.
J.
Pursuant to any administrative or judicial finding and determination
that any property is in violation of this article, the Borough may
take the necessary action to ensure compliance with and place a lien
on the property for the cost of the work performed to benefit the
property and bring it into compliance.
K.
Registration
of abandoned property for which a summons and complaint in an action
to foreclosure on a mortgage has been filed. This article is adopted
pursuant to subsection a of N.J.S.A. 40:48-2.12s3 and requires that:
[Added 9-22-2022 by Ord. No. 16-2022]
(1)
A creditor filing a summons and complaint in an action to foreclosure
shall, in addition to the notice provided to the Borough of Clayton
pursuant to Section 17 of N.J.S.A. 46:10B-51 or Section 2 of N.J.S.A.
40:48-2.12s2, register the residential or commercial property with
the municipality's property registration program as a property
in foreclosure and, as part of the registration:
(a)
Provide the municipality with the information regarding the
creditor required by paragraph (1) of Subsection a of Section 17 or
paragraph (1) of Subsection a of Section 2 of N.J.S.A. 40:48-2.12S2;
(b)
Identify the date the summons and complaint in an action to
foreclosure on a mortgage was filed against the subject property,
the court in which it was filed, and the docket number of the filing;
and
(2)
If there is any change in the name, address or telephone number for
a representative, agent, or individual authorized to accept service
on behalf of a creditor required to register pursuant to the property
registration program following the filing of the summons and complaint,
the creditor shall update the property registration program within
10 days of the change in that information;
(3)
The creditor filing a summons and complaint in an action to foreclosure shall, if the registered property becomes vacant and abandoned in accordance with the definition in the ordinance required by Subsection K(8) after the property is initially registered with the municipality, update the property registration with the municipality to reflect the change in the property's status;
(4)
The creditor filing a summons and complaint in an action to foreclosure
shall be responsible for the care, maintenance, security, and upkeep
of the exterior of the property if the property is vacant and abandoned
at any time while the property is registered with the property registration
program;
(5)
A creditor located out of state shall be responsible for appointing
an in-state representative or agent to act for the foreclosing creditor;
(6)
A credit comply with the requirements of § 74-24 relating to the care, maintenance, security, and upkeep of the exterior of the property, and post a sign affixed to the inside of the property and visible to the public indicating the name, address, and telephone number of the creditor or an out-of-state creditor's in-state representative or agent for the purchase of receiving service of process, or acquire and otherwise maintain liability insurance by procuring a vacancy policy, covering any damage to any person or any property caused by any physical condition of the property while registered with the property registration program;
(7)
Fees may be imposed on the creditor in connection with the property registration program as authorized pursuant to Subsection D of this section; and
(8)
A property shall be considered vacant and abandoned if it is not
legally occupied by a mortgagor or tenant, which is in such condition
that it cannot be legally reoccupied, because of the presence 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 municipal building, housing, or
similar code during the preceding year, or an order by municipal authorities
declaring the property to be unfit for occupancy and to remain vacant
and unoccupied;
(m)
The 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.
L.
This section authorizes a public officer, designated or appointed pursuant to N.J.S.A. 40:48-2.3 et seq., or any other local official responsible for administration of any property maintenance or public nuisance code to issue a notice to the creditor filing the summons and complaint in an action to foreclosure, if the public officer or other authorized municipal official determines that the creditor has violated the ordinance. In the case a violation for failure to provide care, maintenance, security and upkeep of the exterior of vacant and abandoned property, such notice shall require the person or entity to correct the violation within 30 days of receipt of the notice, or within 10 days of receipt of the notice if the violation presents an imminent threat to the public health and safety. The notice issued shall include a description of the conditions which give rise to the violation. If the creditor fails to remedy the violation within that time period, the Borough may impose penalties allowed for the violation of municipal ordinances. If the Borough expends public funds in order to abate a nuisance or correct a violation on a commercial property in a situation in which the creditor was given notice pursuant to the provisions of Subsection B of this section but failed to abate the nuisance or correct the violation as directed, the municipality shall have the same recourse against the creditor as it would have against the title owner of the property, including, but not limited to, the recourse provided under Section 23 of P.L. 2003, c. 210 (N.J.S.A. 55:19-100).
[Added 9-22-2022 by Ord.
No. 16-2022]
M.
This section authorizes the Borough of Clayton to contract with and
set the compensation of a private entity, pursuant to the Local Public
Contracts Law, N.J.S.A. 40A:11-1 et seq., to assist the municipality
in the implementation and administration of the property registration
program established pursuant to an ordinance adopted pursuant to this
section.
N.
This section authorizes the Borough of Clayton to impose an annual fee on a creditor required to register a property pursuant to this section. The fee shall not exceed: 1) $500 per property annually for any property that is required to be registered because a summons and complaint in an action to foreclosure was filed by the creditor; and 2) an additional $2,000 per property annually if the property is vacant or abandoned pursuant to the definition in § 74-20 when the summons and complaint in an action to foreclosure is filed, or becomes vacant and abandoned pursuant to the definition in § 74-20 at any time thereafter while the property is in foreclosure. If the foreclosing or foreclosed property is not registered, or the registration fee is not paid within 30 days of when the registration or renewal is required pursuant to this section, a late fee equivalent to 10% of the annual registration fee shall be charged for every thirty-day period, or portion thereof, the property is not registered and shall be due and payable with the registration.
[Added 9-22-2022 by Ord.
No. 16-2022]
O.
CREDITOR
(1)
(2)
As used in this section:
[Added 9-22-2022 by Ord.
No. 16-2022]
Mortgagees or an agent or assignee of a mortgagee, such as
the servicer, who has filed a complaint in the Superior Court seeking
to foreclose upon a residential or commercial mortgage. If the entity
seeking to foreclosure upon the residential or commercial mortgage
changes as a result of an assignment, transfer, or otherwise after
the filing of the foreclosure complaint in the Superior Court, the
new entity shall be deemed the creditor for purposes of this section.
For purposes of this section, a creditor shall not include the state,
a political subdivision of the state, a state, county, or local government
entity or their agent or assignee, such as the servicer.
An out-of-state creditor subject to this section found by the
municipal court, or by any other court of competent jurisdiction,
to be in violation of the requirement to appoint an in-state representative
or agent pursuant to the ordinance shall be subject to a fine of $2,500
for each day of the violation. Any fines imposed on a creditor for
the failure to appoint an in-state representative or agent shall commence
on the day after the ten-day period set forth in Paragraph (1) of
Subsection a of Section 17 of N.J.S.A. 46:10B-51 or Paragraph (1)
of Subsection a of Section 2 of N.J.S.A. 40:48-2.12s2 for providing
notice to the Municipal Clerk that a summons and complaint in an action
to foreclosure on a mortgage has been served.
A creditor subject to this section found by the municipal court
or by any other court of competent jurisdiction, to be in violation,
excluding only a violation addressed by Subsection O(1), of the ordinance
shall be subject to a fine of $1,500 for each day of the violation.
Any fines imposed pursuant to this subsection shall commence 31 days
following receipt of the notice of violation, except if the violation
presents an imminent risk to public health and safety, in which case
any fines shall commence 11 days following receipt of the notice.
P.
No less than 20% of any money collected pursuant to this section
or an ordinance adopted pursuant to this section shall be utilized
for municipal code enforcement purposes.
[Added 9-22-2022 by Ord.
No. 16-2022]
A.
Properties subject to this article shall be kept free of weeds, overgrown
brush, dead vegetation, trash, junk, debris, building materials, any
accumulation of newspapers, circulars, flyers, or notices, except
those required by federal, state or local law, discarded personal
items, including but not limited to furniture, clothing, and large
and small appliances, printed material or any other items that give
the appearance that the property is abandoned.
B.
The property shall be maintained free of graffiti or similar markings
by removal or painting over with an exterior grade paint that matches
the color of the exterior structure.
C.
Front, side, and rear yards, including landscaping, shall be maintained
in accordance with the applicable code(s) at the time registration
was required.
D.
Yard maintenance shall include, but not be limited to, grass, ground
covers, bushes, shrubs, hedges or similar plantings, decorative rock
or bark or artificial turf/sod designed specifically for residential
installation. Acceptable maintenance of yards and/or landscape shall
not include weeds, gravel, broken concrete, asphalt or similar material.
E.
Maintenance shall include, but not be limited to, watering, irrigation,
cutting and mowing of required ground cover or landscape and removal
of all trimmings.
F.
Pools and spas shall be maintained so the water remains free and
clear of pollutants and debris and shall comply with the regulations
set forth in the applicable code(s).
G.
Failure of the mortgagee and/or owner to properly maintain the property
may result in a violation of the applicable code(s) and issuance of
a summons or notice of violation.
H.
In addition to the above, the property is required to be maintained
in accordance with the applicable code(s).
A.
Properties subject to these sections shall be maintained in a secure
manner so as not to be accessible to unauthorized persons.
B.
A "secure manner" shall include, but not be limited to, the closure
and locking of windows, doors, gates and other openings of such size
that may allow a child to access the interior of the property or structure.
Broken windows, doors, gates and other openings of such size that
may allow a child to access the interior of the property or structure
must be repaired. Broken windows shall be secured by reglazing of
the window.
C.
If a mortgage on a property is in default and the property has become
vacant or abandoned, a property manager shall be designated by the
mortgagee to perform the work necessary to bring the property into
compliance with the applicable code(s), and the property manager must
perform regular inspections to verify compliance with the requirements
of this article and any other applicable laws.
All abandoned real property is hereby declared to be a public
nuisance, the abatement of which pursuant to the police power is hereby
declared to be necessary for the health, welfare and safety of the
residents of the Borough.
Any person who shall violate the provisions of this article
may be cited and fined as provided in this article.
A.
Any person who shall violate the provisions of this article shall
be cited and punishable by one or more of the following: imprisonment
in the county jail or in any place provided by the Borough for the
detention of prisoners for any term not exceeding 90 days, or by a
fine not less than $100 nor exceeding $1,250, or by a period of community
service not exceeding 90 days.[1]
B.
Any person who is convicted of violating this article within one
year of the date of a previous violation of the same section and who
was fined for the previous violation shall be sentenced by a court
to an additional fine as a repeat offender. The additional fine imposed
by the court upon a person for a repeated offense shall not be less
than the minimum or exceed the maximum fine fixed for a violation
of this article but shall be calculated separately from the fine imposed
for the violation of this article.
A.
If the Code Enforcement Officer has reason to believe that a property
subject to the provisions of this article is posing a serious threat
to the public health, safety and welfare, the Code Enforcement Officer
may temporarily secure the property at the expense of the mortgagee
and/or owner and may bring the violations before a court of competent
jurisdiction as soon as possible to address the conditions of the
property.
B.
The Code Enforcement Officer shall have the authority to require
the mortgagee and/or owner of record of any property affected by this
section to implement additional maintenance and/or security measures,
including but not limited to securing any and all doors, windows or
other openings, employment of an on-site security guard or other measures
as may be reasonably required to help prevent further decline of the
property.
C.
If there is a finding that the condition of the property is posing
a serious threat to the public health, safety and welfare, then the
Code Enforcement Officer may direct the Borough to abate the violations
and charge the mortgagee with the cost of the abatement.
D.
If the mortgagee does not reimburse the Borough for the cost of temporarily
securing the property, or of any abatement directed by the Code Enforcement
Officer or Municipal Court Judge, within 30 days of the Borough sending
the mortgagee the invoice, then the Borough may lien the property
with such cost, along with an administrative fee of $500 to recover
the administrative personnel services.
Whoever opposes, obstructs or resists any enforcement officer
or any person authorized by the enforcement officer in the discharge
of duties as provided in this article shall be punishable as provided
in the applicable code(s) or a court of competent jurisdiction.
Any enforcement officer or any person authorized by the Borough
to enforce the sections here within shall be immune from prosecution,
civil or criminal, for reasonable, good faith entry upon real property
while in the discharge of duties imposed by this article.
