[Added 5-23-2017 by Ord.
No. 2017-04]
The following terms, as used in this article, shall have the
following meanings:
Any property that is determined to be abandoned pursuant to the provisions of § 255-90.
A list of properties identified by the public officer designated
pursuant to N.J.S.A. 40:48-2.5 to establish and maintain a list of
properties that contains the tax block and lot number, the name of
the owner of record, if known, and the street address of the lot,
pursuant to the provisions of N.J.S.A. 55:19-55.
Any resident of the Township of Cranford, any owner or operator
of a business within the Township, or any organization representing
the interests of residents, business owners or otherwise engaged in
furthering the revitalization and improvement of the neighborhood
in which the property is located.
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 Construction Official or other public officer designated
by the Mayor of the Township of Cranford, pursuant to section N.J.S.A.
40:48-2.4, or any officer of the Township qualified to carry out the
responsibilities set forth under the provisions of this article and
as designated by the Mayor.
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 this article to carry out the rehabilitation of vacant
buildings in urban areas.
Pursuant to N.J.S.A. 40:48-2.5, the Township of Cranford Construction
Official is hereby designated and appointed as the public officer
to exercise the powers prescribed by this article.
A.
Except as provided in § 255-93, 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
B.
A property which contains both residential and nonresidential space may be considered abandoned pursuant to the criteria set forth in this section 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.
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 Chapter 319, Property Maintenance, of the Township of Cranford Municipal Code;
(2)
The condition and vacancy of the property materially increase 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 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 has 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.
A.
The public officer shall establish and maintain a list of properties
deemed to be abandoned properties pursuant to this article. All properties
listed shall include the tax block and lot number, the name of the
owner of record, if known, and the street address of the lot, pursuant
to the provisions of N.J.S.A. 55:19-55.
B.
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.
C.
The public officer shall establish the abandoned property list or
any additions thereto by publication in the official newspaper of
the municipality, 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 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 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 Union County Clerk. 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 municipality as plaintiff, as though an action
had been commenced by the municipality against the owner.
D.
The public officer, within 10 days of the establishment of the abandoned
property list, or any additions thereto, shall send by regular mail,
facsimile or electronic mail a copy of the abandoned property list
to the electric and gas utilities serving the municipality.
E.
An owner or lienholder may challenge the inclusion of his property
on the abandoned property list 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.
F.
Within 30 days of receipt of a request for an appeal of the findings contained in the notice pursuant to Subsection E 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 ground for appeal shall be that the property in question is not abandoned property as that term is defined in 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.
G.
The property owner may challenge an adverse determination as the result of an appeal with the public officer pursuant to Subsections E and F of this section by instituting, in accordance with the New Jersey Court Rules, a summary proceeding in the Superior Court, Law Division, Union County, 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 F of this section. The sole ground for appeal shall be that the property in question is not abandoned property as that term is defined in N.J.S.A. 55:19-54. The failure to institute an action of appeal on a timely basis shall constitute a jurisdictional bar to challenging the adverse determination, except that, for good cause shown, the court may extend the deadline for instituting the action. The public officer shall promptly remove any property from the abandoned property list that has been determined not to be abandoned on appeal.
H.
The abandoned property list shall become effective and the Township
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.
A.
If an entity other than the Township of Cranford 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 § 255-90 if:
(1)
The
owner of the certificate has continued to pay all municipal 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 § 255-90.
C.
A determination that a property is abandoned property under the provisions
of this article 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 property according to the criteria set forth in §§ 255-90 and 255-91.
A.
The Township of Cranford, or its designee, may bring a summary action
or otherwise to transfer possession and control of any abandoned property
in need of rehabilitation in the Superior Court, Law Division.
B.
Upon the court granting possession and control of the property to
the Township, the Township may thereafter 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.
C.
Failure by the owner, mortgage holder or lienholder to submit plans
for rehabilitation to the Township, or to 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.
A.
At least 30 days before filing a complaint pursuant to § 255-94, the Township of Cranford shall serve a notice of intention to take possession of an abandoned property. 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 § 255-90. The notice shall provide that unless the owner or a party in interest prepares and submits a rehabilitation plan to the appropriate Township officials, the Township or its designee 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.
B.
After serving the notice of intent pursuant to Subsection A of this section, the Township 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.
A.
The Township of Cranford may exercise its rights under the provisions of this article, and under New Jersey statutes Title 55, Chapter 19, directly or may designate a qualified rehabilitation entity to act as its designee for the purpose of exercising its rights where that designation will further the rehabilitation and reuse of the property consistent with municipal plans and objectives. This designation shall be made by the Mayor of the Township, who may delegate this authority to the public officer.
B.
Regardless of whether the Township exercises its rights directly
or designates a qualified rehabilitation entity pursuant to this section,
while in possession of a property pursuant to the provisions of this
article, the Township shall maintain, safeguard, and maintain insurance
on the property. Notwithstanding the Township's possession of the
property, nothing in this article 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, including of any obligation
the owner or any other person may have for the payment of taxes or
other municipal 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.
C.
Pursuant to the provisions of N.J.S.A. 55:19-91, where the Township
has designated a qualified rehabilitation entity to act on its behalf,
the qualified rehabilitation entity shall provide quarterly reports
to the Township on its activities and progress toward rehabilitation
and reuse of the property, and the Township or qualified rehabilitation
entity, as the case may be, shall provide such reports to the court
as the court determines to be necessary.
D.
Pursuant to the provisions of N.J.S.A. 55:19-91, the Township shall
file a notice of completion with the court, and shall also serve a
copy on the owner and any mortgage holder or lienholder, at such time
as the Township has determined that no more than six months remain
to the anticipated date on which rehabilitation will be complete.
This notice shall include an affidavit of the 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.
A.
Pursuant to the provisions of N.J.S.A. 55:19-96, where the Township
of Cranford 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.
B.
The court may authorize the Township to sell the building free and clear of liens, claims and encumbrances, in which event all such liens, claims and encumbrances shall be transferred to the proceeds of sale with the same priority as existed prior to resale in accordance with the provisions of this section, except that municipal liens shall be paid at settlement. The proceeds of the purchase of the property shall be distributed as set forth in § 255-98.
C.
The Township 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.
D.
Upon approval by the court the Township shall sell the property on such terms and at such price as the court shall approve and may place the proceeds of sale in escrow with the court. The court may order a distribution of the proceeds of sale after paying court costs in the order of priority set forth in § 255-98.
The proceeds paid pursuant to § 255-97 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 Cranford and granted priority lien status pursuant to § 255-99;
D.
A reasonable development fee to the Township 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.
A.
Pursuant to the provisions of N.J.S.A. 55:19-98, the public officer,
with the approval of the court, may place a lien on the property to
cover any costs of the Township of Cranford in connection with a proceeding
under the provisions of this article incurred prior to the grant by
the court of an order of possession under this article, 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 municipal lien for the purposes of N.J.S.A.
54:5-9 with the rights and status of a municipal lien pursuant thereto.
B.
With the exception of the holding of special tax sales pursuant to § 255-101 of this article, the remedies available under this article shall be available to the Township with respect to any abandoned property, whether or not the Township has established an abandoned property list as provided in N.J.S.A. 55:19-55 and whether or not the property has been included on any such list.
With respect to any lien placed against any real property pursuant
to the provisions of N.J.S.A. 40:48-2.3, 40:48-2.5, or 40:48-2.3a,
or any receiver's lien pursuant to N.J.S.A. 2A:42-114 et al., the
Township of Cranford 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 Township of Cranford 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
pursuant to N.J.S.A. 55:19-55. Any such special tax sale shall be
subject to the following provisions:
A.
The Township 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 municipal plans and regulations; commitments by the
bidder to rehabilitate or otherwise reuse the property, consistent
with municipal 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 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 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, 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 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 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, and any amount paid by the purchaser to the Township at the special tax sale shall be forfeited 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 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
pursuant to this section and its interest in the property or properties
reverts to the Township, the Township may subsequently designate the
entity previously designated as an eligible purchaser as the winning
bidder for the property or properties and assign the tax sale certificates
to that entity on the basis of that entity's bid at the special tax
sale, subject to the terms and conditions of the special tax sale.
G.
The Township shall provide notice of a special tax sale pursuant to N.J.S.A. 54:5-26. The notice shall include any special terms of sale established by the Township pursuant to Subsection B, C or D of this section. Nothing herein shall prohibit the Township 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
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 of the Township of Cranford 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 Township of Cranford
has purchased or taken assignment from the Township 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 municipal taxes and liens due on the property within 30 days after
the property is placed on the list; provided, however, that if the
owner of the certificate fails to initiate foreclosure proceedings
within six months after the property was first placed on the list,
the property shall be restored to the abandoned property list.
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 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,
indicating either 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 Cranford, any owner or operator
of a business within the Township 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 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.
