[HISTORY: Adopted by the Township Committee
of the Township of Andover 4-28-2008 by Ord. No. 2008-06; amended in its entirety 4-10-2017 by Ord. No. 2017-04. Subsequent amendments noted where applicable.]
As used in this chapter, the following terms shall have the
meanings indicated:
Any property that is determined to be abandoned pursuant
to P.L. 2003, N.J.S.A. 55:19-81.
Any building, or structure, or part thereof, whether used
for human habitation or otherwise, and includes any outbuildings,
and appurtenances belonging thereto.
Includes any resident of the Township of Andover, any owner
or operator of a business within the Township of Andover, 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 a building or any part thereof.
The holder or holders of title in fee simple.
Any building or structure and the land appurtenant thereto.
A person designated or appointed by the Township Committee
pursuant to P.L. 1942, N.J.S.A. 40:48-2.5, or any officer of the municipality
qualified to carry out the responsibilities set forth in N.J.S.A.
55:19-78 et seq. as designated by resolution of the Township Committee.
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
to carry out the rehabilitation of vacant buildings, as set forth
under N.J.S.A. 55:19-80.
The Township of Andover does hereby adopt and enact all provisions
of the Abandoned Property Rehabilitation Act, N.J.S.A. 55:19-78 et
seq.
A.
Except as provided in 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 Township Committee that:
(1)
The property is in need of rehabilitation in the reasonable judgment
of the Township Committee and no rehabilitation has taken place during
that same 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 Township Committee pursuant to this
section;
(3)
At least one installment of property tax remains unpaid and delinquent
on that property as of the date of a determination by the Township
Committee pursuant to this section; or
(4)
The property has been determined to be a nuisance by the Township
Committee in accordance with N.J.S.A. 55:19-82 for one or more of
the following reasons:
(a)
The property has been found to be unfit for human habitation,
occupancy or use pursuant to N.J.S.A. 40:48-2.3;
(b)
The condition and vacancy of the property materially increases
the risk of fire to the property and adjacent properties;
(c)
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 municipality
has secured the property in order to prevent such hazards after the
owner has failed to do so;
(d)
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
(e)
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.
B.
A property which contains both residential and nonresidential space
may be considered abandoned pursuant to 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 Township Committee.
Pursuant to Section 3 of P.L. 1942, c. 112,[1] the Township Committee is hereby designated as the public
officer for the purpose of carrying out the responsibilities established
by this chapter and shall have all the responsibilities established
by this chapter and shall have all the responsibilities and powers
provided by all applicable laws.
[1]
Editor's Note: See N.J.S.A. 40:48-2.5.
A.
The Township Committee shall identify abandoned property within the
Township of Andover for the purpose of establishing an abandoned property
list. The abandoned property list shall include, for each abandoned
property identified, the tax block and lot number, the name of the
owner of record, if known, and the street address of the lot. The
Township Committee may add properties to the abandoned property list
at any time and may delete properties at any time when it finds that
the property no longer meets the definition of an abandoned property.
B.
An abandoned property shall not be included on the abandoned property
list if rehabilitation is being performed in a timely manner, as evidenced
by building permits issued and diligent pursuit of rehabilitation
work authorized by those permits. A property on which an entity other
than the Township of Andover has purchased or taken assignment from
the Township of a tax sale certificate which has been placed on the
abandoned property list may be removed if the owner of the certificate
pays all municipal taxes and liens due on the property within 30 days
after the property is placed on the list; provided, however, that
if the owner of the certificate fails to initiate foreclosure proceedings
within six months after the property was first placed on the list,
the property shall be restored to the abandoned property list in accordance
with the provisions of N.J.S.A. 55:19-103.
C.
The Township Committee shall establish the abandoned property list
and any additions or deletions thereto by authorizing the publication
of the list in the official newspaper of the Township of Andover,
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 Township Committee, in consultation with the Tax Collector,
shall also send out a notice by regular mail to any mortgagee, servicing
organization, or property tax processing organization that receives
a duplicate copy of the tax bill pursuant to N.J.S.A. 54:4-64(d).
When the owner of record is not known for a particular property and
cannot be ascertained by the exercise of reasonable diligence by the
Tax Collector, notice shall not be mailed but instead shall be posted
on the property in the manner as provided in N.J.S.A. 40:48-2.7. The
mailed notice shall indicate the factual basis for the Township Committee's
finding that the property is abandoned property, as that term is defined
herein and in N.J.S.A. 55:19-54, and shall specify the information
relied upon in making such finding. In all cases, a copy of the mailed
or posted notice shall also be filed by the Township Committee in
the office of the Sussex County Clerk. This filing shall have the
same force and effect as a formal notice under N.J.S.A. 2A:15-6. The
notice shall be captioned with the name of the Township of Andover
as plaintiff and the name of the property owner as defendant, as though
an action had been commenced by the Township against the owner.
D.
An owner or lienholder may challenge the inclusion of his property
on the abandoned property list by appealing that determination to
the Township Committee within 30 days of the owner's receipt
of the certified notice or 40 days from the date upon which the notice
was sent. An owner whose identity was not known to the Township Committee
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 Township
Committee 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, the Township Committee 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 asserting that the property is not
an abandoned property, can demonstrate that the property was erroneously
included on the list. The affidavit or certification shall be accompanied
by supporting documentation, such as, but not limited to, photographs,
repair invoices, bills and construction contracts. The sole ground
for appeal shall be that the property in question is not abandoned
property as that term is defined herein and in N.J.S.A. 55:19-54.
The Township Committee shall decide any timely filed appeal within
10 days of the hearing on the appeal and shall promptly, by certified
mail, return receipt requested, and by regular mail, notify the property
owner of the decision and the reasons therefor.
E.
The property owner may challenge an adverse determination of an appeal with the Township Committee pursuant to Subsection D of this section, by instituting, in accordance with the New Jersey Court Rules, a summary trial proceeding in the Superior Court, Sussex County. Such action shall be instituted within 20 days of the date of the notice of decision mailed by the Township Committee. The sole ground for appeal and new hearing before the Superior Court shall be that the property in question is not an abandoned property as that term is defined in N.J.S.A. 55:19-54. The failure to institute an action of appeal on a timely basis shall constitute a jurisdictional bar to challenging the adverse determination, except that for good cause shown the Court may extend the deadline for instituting the action.
F.
The Township Committee shall promptly remove any property from the
abandoned property list that has been determined by it or on appeal
not to be abandoned and may, in its discretion, remove properties
from said list whenever it deems such removal appropriate under the
circumstances.
G.
The abandoned property list shall become effective, and the Township
of Andover shall have the right to pursue any legal remedy with respect
to properties on the list, at any time after at least one property
has been placed on the list and following the expiration of the period
for appeal with respect to that first property or upon the denial
of an appeal brought by the property owner of that first property.
A.
Pursuant to N.J.S.A. 55:19-105, any interested party may submit a
written request to the Township Committee asserting that any property
within the Township of Andover should be included on the abandoned
property list. The written request must specify 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 Township Committee shall provide a written response to the party,
either indicating that the property will be added to the list or,
if not, the reasons for not adding the property. For the purposes
of this section, the term "interested parties" shall include any resident
of the Township of Andover, any owner or operator of a business within
the Township of Andover 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.
B.
Any interested party may participate in a redetermination hearing
regarding the inclusion of a property on the abandoned property list.
Upon written request by any interested party, the Township Committee
shall provide that party with at least 20 days' notice of any
such hearing. The party shall provide the Township Committee 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.
A.
An owner may request removal of his/her property from the abandoned
property list prior to sale of the tax sale certificate by paying
all taxes and Township liens due, including interest and penalties,
and:
(1)
By posting cash or a bond equal to the cost of remediating all conditions
because of which the property has been determined to be abandoned
pursuant to N.J.S.A. 55:19-55 and by posting cash or a bond to cover
the cost of any environmental cleanup required on the property, evidenced
by a certification by a licensed engineer retained by the owner, and
reviewed and approved by the Township Committee, stating that the
cash or bond adequately covers the cost of the cleanup; or
(2)
By demonstrating to the satisfaction of the Township Committee that
the conditions rendering the property abandoned have been remediated
in full; provided, however, that where the Township Committee finds
that the owner is actively engaged in remediating the conditions because
of which the property was determined to be abandoned, as evidenced
by significant rehabilitation activity on the property, the Township
Committee 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
New Jersey Department of Environmental Protection or an administrative
consent order, as the case may be, or if an agreement or order is
in effect but the owner has failed to perform the remediation in conformance
with the agreement or order, then the cash or bond shall be forfeited
to the Township which shall use the cash or bond and any interest
which has accrued thereon for the purpose of demolishing or rehabilitating
the property or performing the environmental remediation. Any funds
remaining after the property has been demolished, rehabilitated or
cleaned up shall be returned to the owner.
A.
Notwithstanding the provisions of N.J.S.A. 54:5-19, or the provisions
of any other law to the contrary, if a property is included on the
abandoned property list and the property taxes or other Township liens
due on the property are delinquent for six or more quarters as of
the date of expiration of the right to appeal the property's
inclusion on the list or, if an appeal has been filed as of the date
that all opportunities for appeal of inclusion on the list have been
exhausted, then the tax lien on the property may be sold in accordance
with the procedures of the Tax Sale Law, N.J.S.A. 54:5-1 et seq.,
on or after the 90th day following the expiration of that time of
appeal or final determination on an appeal.
B.
The Township of Andover may, at its option, require that the sale
of the tax sale certificate or any subsequent assignment or transfer
of a tax sale certificate held by the Township be subject to the express
condition that the purchaser or assignee shall be obliged to perform
and conclude any rehabilitation or repairs necessary to remove the
property from the abandoned property list pursuant to N.J.S.A. 55:19-55
and to post a bond in favor of the Township to guarantee the rehabilitation
or repair of the property. The Township Committee may waive a requirement
to post a bond imposed by the Township for any purchaser, assignee
or transferee of a tax sale certificate that provides documentation
acceptable to the Township Committee that the purchaser, assignee
or transferee is a qualified rehabilitation entity as defined in N.J.S.A.
55:19-80. The cost of rehabilitation and repairs and the cost of the
bond shall be added to the amount required to be paid by the owner
for redemption of the property. The purchaser, assignee or transferee
of the tax sale certificate who is required to rehabilitate and repair
the property shall be required to file the appropriate affidavits
with the Tax Collector, pursuant to N.J.S.A. 54:5-62, representing
the amounts of monies expended periodically toward the rehabilitation
or repair of the property. A purchaser, assignee or transferee shall
be entitled to interest on the amounts expended, as set forth in the
affidavits, at the delinquent rate of interest for delinquencies in
excess of $1,500 in effect for the time period when the amounts were
expended, pursuant to N.J.S.A. 54:4-67. The tax sale certificate purchaser,
assignee or transferee, with the authority of the Township of Andover,
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 Andover
harmless, has been filed with the Township Committee.
C.
If the Township of Andover acquires the tax sale certificate for
a property on the abandoned property list, then, upon 10 days'
written notice to the property owner and any mortgagee as of the date
of the filing of the notice pursuant to N.J.S.A. 55:19-55, the Township
shall be permitted to enter upon the property and remediate any conditions
that caused the property to be included on the abandoned property
list. No remediation shall be commenced, however, if within that ten-day
period the owner or mortgagee shall have notified the Township in
writing that the owner or mortgagee has elected to perform the remediation
itself. When the owner or mortgagee elects to perform the remediation
itself, it shall be required to post bond in favor of the Township
of Andover in order to ensure performance. The amount and conditions
of the bond shall be determined by the Township Committee.
D.
The cost of remediation incurred by the Township of Andover, as so
certified by the entity incurring the cost upon completion of the
remediation, shall constitute a lien upon the property first in time
and right to any other lien, whether the other lien was filed prior
to or after the filing of any lien by the Township, except for Township
taxes, liens and assessments and any lien imposed pursuant to the
Spill Compensation and Control Act, N.J.S.A. 58:10-23.11 et seq.,
together with any interest thereon. The certification of cost shall
be filed and recorded as a lien by the entity incurring the cost with
the Sussex County Clerk.
E.
The clearance, development, redevelopment, or repair of property
being maintained as an abandoned property pursuant to this chapter
shall be considered a public purpose and public use for which the
power of eminent domain may be lawfully exercised.
A.
The Township of Andover may hold special tax sales with respect to
those properties eligible for tax sale pursuant to N.J.S.A. 54:5-19
which are also on the abandoned property list.
B.
The Township Committee shall establish criteria for eligibility to
bid on properties at the sale which may include, but need not be limited
to:
(1)
Documentation of the bidder's ability to rehabilitate or otherwise
reuse the property consistent with Township plans and regulations;
commitments by the bidder to rehabilitate or otherwise reuse the property,
consistent with Township plans and regulations;
(2)
Commitments by the bidder to take action to foreclose on the tax
lien by a date certain; and
(3)
Such other criteria as the Township Committee 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.
C.
The Township Committee may establish minimum bid requirements for
a special tax sale that are less than the full amount of the taxes,
interest and penalties due to help ensure that the properties will
be rehabilitated or otherwise utilized in a manner consistent with
the public interest.
D.
The Township Committee may combine properties in said special tax
sale into bid packages and require that bidders place a single bid
on each package, rejecting any and all bids on individual properties
that are submitted.
E.
The Township Committee may sell said properties subject to the provision
that, if the purchaser fails to carry out any commitment that has
been set forth as a condition of sale or misrepresents any material
qualification that has been established as a condition of eligibility
to bid pursuant thereto, then the properties and any interest thereto
acquired by the purchaser shall revert to the Township, and any amount
paid by the purchaser at the special tax sale shall be forfeit to
the Township.
F.
In the event there are two or more qualified bidders for any property
or bid package in a special tax sale, the Township may designate the
unsuccessful qualified bidder whose bid was closest to the successful
bid as an eligible purchaser. In the event that the selected purchaser
of that property or bid package fails to meet any of the conditions
of sale established by the Township and his/her interest in the property
or properties reverts to the Township, the Township may subsequently
designate the entity previously designated as an eligible purchaser
as the winning bidder for the property or properties and assign the
tax sale certificates to that entity on the basis of that entity's
bid at the special tax sale, subject to the terms and conditions of
the special tax sale.
G.
The Township of Andover shall provide notice of a special tax sale
pursuant to N.J.S.A. 54:5-26. The notice shall include any special
terms of sale established by the Township pursuant to this section.
Nothing shall prohibit the Township from holding a special tax sale
on the same day as a standard or accelerated tax sale.
A.
When a person or entity other than the Township of Andover acquires
a tax sale certificate for a property on the abandoned property list
at tax sale, the purchaser may institute an action to foreclose the
right of redemption at any time after the expiration of just six months
following the date of the sale of the tax sale certificate.
B.
When the Township of Andover is the purchaser at tax sale of any
property on the abandoned property list pursuant to N.J.S.A. 54:5-34,
an action to foreclose the right of redemption may be instituted in
accordance with the provisions of Subsection b of N.J.S.A. 54:5-77.
C.
After the foreclosure action is instituted, the right to redeem shall
exist and continue to exist until barred by the judgment of the Superior
Court; provided, however, that no redemption shall be permitted except
where the owner:
(1)
Posts cash or a bond equal to the cost of remediating the conditions
because of which the property was determined to be abandoned pursuant
to N.J.S.A. 55:19-56, as determined by the Court; or
(2)
Demonstrates to the Court that the conditions because of which the
property was determined to be abandoned have been remedied in full.
A.
If an entity other than the Township of Andover has purchased or
taken assignment from the Township of a tax sale certificate on a
property that has not been legally occupied for a period of six months,
that property shall not be added to the abandoned property list under
the following limited circumstances:
(1)
The owner of the certificate has continued to pay all Township taxes
and liens on the property in the tax year when due; and
(2)
The owner of the certificate takes action to initiate foreclosure
proceedings within six months after the property is eligible for foreclosure
pursuant to either Subsection a or b of N.J.S.A. 54:5-86, as appropriate,
and diligently pursues foreclosure proceedings in a timely fashion
thereafter.
B.
A property used on a seasonal basis shall be deemed abandoned only
if it meets any two of the additional criteria set forth in N.J.S.A.
55:19-81.
C.
A determination that a property is abandoned property, under the
provisions of this chapter and N.J.S.A. 55:19-78 et seq., shall not
constitute a finding that the use of the property has been abandoned
for purposes of municipal zoning or land use regulation.
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 Township Committee or the
Tax Collector shall, in a timely fashion, provide the requester with
a certification that the property fulfills the definition of an abandoned
property according to the criteria established in N.J.S.A. 55:19-81
and 55:19-82.
A.
A summary action or other action to transfer possession and control
of abandoned property in need of rehabilitation to the Township of
Andover may be brought by the Township in the Superior Court, Sussex
County. If the Court shall find that the property is abandoned pursuant
to N.J.S.A. 55:19-81, and that the owner or party in interest has
failed to submit and initiate a rehabilitation plan, then the Court
may authorize the Township to take possession and control of the property
and to develop its own rehabilitation plan for the property.
B.
Where the Township has been granted possession and control, the Township
may commence and maintain those further proceedings for the conservation,
protection or disposal of the property, or any part thereof, that
are required to rehabilitate the property, recoup the cost and expenses
of rehabilitation, and for the sale of the property; provided, however,
that the Court shall not direct the sale of the property if the owner
applies to the Court for reinstatement of control and possession of
the property as permitted by N.J.S.A. 55:19-92.
C.
Failure by the owner, mortgage holder or lienholder to submit a plan
for rehabilitation to the Township, obtain appropriate construction
permits 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 the initial six-month period,
shall be deemed clear prima facie evidence that the owner has failed
to take any action to further the rehabilitation of the property.
D.
A complaint filed pursuant to N.J.S.A. 55:19-84 and Subsection A of this section shall include:
(1)
Documentation that the property is on the municipal abandoned property
list or a certification by the public officer that the property is
abandoned; and
(2)
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.
E.
Within 10 days of filing a complaint, the plaintiff shall file a
notice of lis pendens with the County of Sussex recording officer.
(1)
At least 30 days before filing the complaint, the Township 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 N.J.S.A.
55:19-81.
(2)
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 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 N.J.S.A. § 55:19-92.
(3)
After the complaint is filed, the complaint shall be served on the
parties in interest in accordance with the New Jersey Rules of Court.
(4)
After serving the notice of intention pursuant to this subsection,
the Township 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 N.J.S.A. 55:19-89.
F.
An owner may defend against a complaint filed pursuant to N.J.S.A.
55:19-84 by submitting a plan for the rehabilitation and reuse of
the property which is the subject of the complaint and by posting
a bond equal to 125% of the amount determined by the Township Committee
or the Court to be the projected cost of rehabilitation.
G.
Any plan submitted by an owner to defend against a complaint shall
be submitted within 60 days after the complaint has been filed, unless
the Court provides the owner with an extension of time for good cause
shown. A plan submitted by an owner pursuant to this section shall
include, but not be limited to:
(1)
A detailed financial feasibility analysis, including documentation
of the economic feasibility of the proposed reuse, including operating
budgets or resale prices, or both, as appropriate;
(2)
A budget for the rehabilitation of the property, including sources
and uses of funds, based on the terms and conditions of realistically
available financing, including grants and loans;
(3)
A timetable for the completion of rehabilitation and reuse of the
property, including milestones for performance of major steps leading
to and encompassing the rehabilitation and reuse of the property;
and
(4)
Documentation of the qualifications of the individuals and firms
that will be engaged to carry out the planning, design, financial
packaging, construction, and marketing or rental of the property.
H.
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.
(1)
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 may apply to the Court to have the owner's bond
forfeited, possession of the building transferred to the Township
to complete the rehabilitation plan and authorization to use the bond
proceeds for rehabilitation of the property.
(2)
The owner shall provide quarterly reports to the Township 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.
(3)
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.
I.
Where the Court approves the rehabilitation plan of the owner or
other party in interest, then it may appoint the Township Committee
to act as monitor of compliance and progress. If the owner fails to
carry out any step in the approved plan, then the Township may apply
to the Court to have the posted bond forfeited, to transfer possession
of the building to the Township to complete the rehabilitation plan,
and to grant authorization to use the bond proceeds for the rehabilitation.
The owner or other party in interest shall provide bimonthly reports
to the Township Committee on its activities and progress toward rehabilitation
and reuse of the property.
J.
If an owner is unsuccessful in defending against a complaint filed
pursuant to N.J.S.A. 55:19-84, the mortgage holder or lienholder may
seek to be designated in possession of the property by submitting
a plan and posting a bond meeting the same conditions as set forth
in N.J.S.A. 55:19-87. The plan must be submitted within 60 days following
the Court's rejection of the owner's plan, unless the Court
provides the mortgage holder or lienholder with an extension of time
for good cause shown. If the Court approves any such mortgage holder
or lienholder's plan, it shall designate that party to be in
possession of the property for purposes of ensuring its rehabilitation
and reuse and may appoint the Township Committee to act as monitor
of the party's compliance. The mortgage holder or lienholder,
as the case may be, shall provide quarterly reports to the Court and
the Township on its activities and progress toward rehabilitation
and reuse of the property.
K.
The mortgage holder or lienholder, as the case may be, shall provide
bimonthly reports to the Court and the Township Committee on its activities
and progress toward rehabilitation and reuse of the property. If the
mortgage holder or lienholder fails to carry out any material step
in the approved plan, then the Township Committee shall notify the
Court which may order the posted bond forfeit, grant the Township
possession of the property, and authorize the Township to use the
proceeds of the bond for rehabilitation of the property.
L.
Any sums incurred or advanced for the purpose of rehabilitating the
property by a mortgage holder or lienholder granted possession of
a property, including Court costs and reasonable attorney's fees,
may be added to the unpaid balance due to that mortgage holder or
lienholder, with interest calculated at the same rate set forth in
the note or security agreement, or, in the case of a tax lienholder,
at the statutory interest rate for subsequent liens.
M.
If no mortgage holder or lienholder meets the conditions of N.J.S.A.
55:19-88, then the Township may submit a plan to the Court which conforms
with the provisions of N.J.S.A. 55:19-87. Such plan shall designate
whether the Township or a qualified rehabilitation entity shall undertake
the rehabilitation plan in accordance with the provisions of N.J.S.A.
55:19-90.
A.
The Court shall grant the Township possession of the property if
it finds that:
(1)
The proposed rehabilitation and reuse of the property is appropriate
and beneficial;
(2)
The Township is qualified to undertake the rehabilitation and reuse
of the property; and
(3)
The plan submitted by the Township represents a realistic and timely
plan for the rehabilitation and reuse of the property.
B.
The Township 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.
C.
The Township Committee may designate a qualified rehabilitation entity
for the purpose of exercising the Township's rights where that
designation will further the rehabilitation and reuse of the property
consistent with Township plans and objectives.
D.
Regardless of whether the Township exercises its rights directly
or the Township Committee designates a qualified rehabilitation entity
pursuant to this section, while in possession of a property the Township
shall maintain, safeguard, and maintain insurance on the property.
Notwithstanding the Township's possession of the property, the
owner of the property shall not be relieved of any civil or criminal
liability or any duty imposed by reason of acts or omissions of the
owner.
E.
The Court may approve the borrowing of funds by the Township of Andover
to rehabilitate the property and may grant a lien or security interests
with priority over all other liens or mortgages other than municipal
liens. Prior to granting this lien priority, the Court must find as
follows:
(1)
The Township sought to obtain the necessary financing from the senior
lienholder which declined to provide such financing on reasonable
terms;
(2)
The Township sought to obtain a voluntary subordination from the
senior lienholder which refused to provide such subordination; and
(3)
Lien priority is necessary in order to induce another lender to provide
financing on reasonable terms. No lien authorized by the Court shall
take effect unless recorded with the Clerk of Sussex County.
F.
Where the Township has designated a qualified rehabilitation entity
to act on its behalf, the qualified rehabilitation entity shall provide
bimonthly reports to the Township Committee on its activities and
progress toward rehabilitation and reuse of the property. The Township
or qualified rehabilitation entity, as the case may be, shall provide
such reports to the Court as the Court determines to be necessary.
If the Court finds that the Township or its designee has failed to
take diligent action toward rehabilitation of the property within
one year from the grant of possession, then the Court may request
that the Township designate another qualified rehabilitation entity
to exercise its rights, or if the Township fails to do so, may terminate
the order of possession and return possession and control of the property
to its owner.
G.
The Township of Andover shall file a notice of completion with the
Court, and shall also serve a copy on the owner and any mortgage holder
or lienholder, at such time as the Township has determined that no
more than six months remain to the anticipated date on which rehabilitation
will be complete. This notice shall include an affidavit of the Township
Committee, attesting that the rehabilitation is anticipated to be
completed within six months, and a statement setting forth the actions
as it plans to undertake consistent with the plan.
H.
Notwithstanding the granting of possession to the Township, nothing
in this chapter 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 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. 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.
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
has filed a notice of completion with the Court or, in the event the
notice of completion is filed within less than one year of the grant
of possession, within 30 days after the Township has filed notice.
The Court may allow additional time for good cause if that additional
time does not materially delay completion of the rehabilitation, place
undue hardship on the Township, or affect any of the terms or conditions
under which the Township has applied for or received financing for
the rehabilitation of the property.
B.
Any petition for reinstatement of the owner's control and possession
of the property shall:
(1)
Include a plan for completion of the rehabilitation and reuse of
the property consistent with the plan previously approved by the Court;
(2)
Provide legally binding assurances that the owner will comply with
all conditions of any grant or loan secured by the Township or repay
those grants or loans in full, at the discretion of the maker of the
loan or grant; and
(3)
Be accompanied by payment equal to the sum of: 1) all Township liens
outstanding on the property; 2) all costs incurred by the Township
in bringing action with respect to the property; 3) any costs incurred
by the Township 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, County
of Sussex, pending disposition of the petition.
A.
Prior to the granting of a petition on the part of the owner by the Court pursuant to § 122-14, 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 to make any repair on the property in the event of a code violation which is not corrected in timely fashion by the owner.
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.
A.
If the owner fails to petition for the reinstatement of control and
possession of the property within 30 days after the Township has filed
a notice of completion or in any event within two years after the
initial grant of possession, or if the owner fails to meet any conditions
that may be set by the Court in granting a reinstatement petition,
upon petition from the Township, the Court may grant the Township
title or authorize the Township to sell the property, subject to the
provisions of N.J.S.A. 55:19-96.
B.
Where the Township seeks to gain title to the property, it shall
purchase the property for fair market value on such terms as the Court
shall approve, and may place the proceeds of the sale in escrow with
the Court.
C.
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 N.J.S.A. 55:19-97.
D.
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.
E.
Upon approval by the Court, the Township shall sell the property
on such terms and at such price as the Court shall approve, and may
place the proceeds of sale in escrow with the Court. The Court shall
order a distribution of the proceeds of sale after paying Court costs
in the order of priority set forth in N.J.S.A. 55:19-97. The proceeds
paid pursuant to N.J.S.A. 55:19-96 shall be distributed in the following
order of priority:
(1)
The costs and expenses of sale;
(2)
Other governmental liens;
(3)
Repayment of principal and interest on any borrowing or indebtedness
incurred by the Township and granted priority lien status pursuant
to Subsection a of N.J.S.A. 55:19-98;
(4)
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;
(5)
Other valid liens and security interests, in accordance with their
priority; and
(6)
The owner.
The public officer, with the approval of the Court, may place
a lien on the property to cover any costs of the Township in connection
with a proceeding under this chapter, incurred prior to the grant
by the Court of an order of possession, which may include costs incurred
to stabilize or secure the property to ensure that it can be rehabilitated
in a cost-effective manner.
A.
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:
(1)
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;
(2)
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 in which the property
is located; and
(3)
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.
B.
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.
A.
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 the furtherance of rehabilitation work
as authorized by said permits.
B.
If an entity or person other than the Township has purchased or taken
assignment for 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 if:
(1)
The owner of the certificate has continued to pay all Township taxes
and liens on the property in the tax year when due; and
(2)
The owner of the certificate takes action to initiate a foreclosure
proceeding within six months after the property is eligible for foreclosure
pursuant to N.J.S.A. 54:5-86, and diligently pursues foreclosure proceedings
in a timely fashion thereafter.
C.
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 N.J.S.A. 55:19-81.
D.
Upon request of a purchaser or assignee of a tax sale certificate
seeking to bar the right of redemption on an abandoned property pursuant
to N.J.S.A. 54:5-86, the public officer or the Township Tax Collector
shall, in a timely fashion, provide the requester with a certification
of abandonment that the property satisfies the definition of an abandoned
property in accordance with this chapter.
[Added 4-23-2018 by Ord.
No. 2018-05]
The initial registration fee for each building shall be $250.
The fee for the first renewal is $500, the fee for the second through
fifth renewal is $1,500 each year, and the fee for all renewals after
the fifth is $5,000 each year.
