[HISTORY: Adopted by the Board of Commissioners of the Town of West New York as indicated in article histories. Amendments noted where applicable.]
[Adopted 5-18-2017 by Ord. No. 14/17[1]]
[1]
Editor's Note: This ordinance was originally adopted as Ch. 415 but was renumbered to maintain the organizational structure of the Code.
WHEREAS, the Mayor and Board of Commissioners of the Town of West New York ("Town") desires to protect the public health, safety and welfare of the citizens of the Town and maintain a high quality of life for its citizens through the maintenance of structures and properties in the Town; and
WHEREAS, properties that are neglected and have unsecured, accessible structures have a negative impact on community value, create conditions that invite criminal activity, and foster an unsafe and unhealthy environment for children; and
WHEREAS, the present mortgage foreclosure crisis has serious negative implications for all communities trying to manage the consequences of properties that have defaulted mortgages, are in the foreclosure process, foreclosed upon and/or mortgagee owned; and
WHEREAS, often times, the foreclosing party or property owners are an absentee responsible party, and there is no local contact for such a property, which makes it difficult to notice the proper party of the violations of the Town's Code, and to maintain the requisite level of maintenance and security on such structures or lots; and
WHEREAS, the Mayor and Board of Commissioners of the Town of West New York recognizes an increase in the number of properties with defaulted mortgages and subject to foreclosure action or foreclosed upon, (hereinafter referred to as "registrable properties") located throughout the Town which can lead to a decline in property value, create nuisances and lead to a general decrease in neighborhood and community aesthetic; and
WHEREAS, the Mayor and Board of Commissioners of the Town of West New York have 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 Mayor and Board of Commissioners of the Town of West New York recognize it is in the best interest of the public health, safety and welfare of the residents of the Town to have a more regulated method to discourage registrable property owners and mortgagees from allowing their properties to be abandoned, neglected or left unsupervised; and
WHEREAS, the Mayor and Board of Commissioners of the Town of West New York have a vested interest in protecting neighborhoods against decay caused by registrable property and conclude that it is in the best interests of the health, safety, and welfare of its citizens and residents to impose registration requirements of registrable property located within the Town of West New York to discourage registrable property owners and mortgagees from allowing their properties to be abandoned, neglected or left unsupervised; and
WHEREAS, the Mayor and Board of Commissioners of the Town of West New York desire to amend the Town's code in order to establish a property registration process that will identify a contact person to address safety and aesthetic concerns to minimize the negative impact and conditions that occur as a result of the foreclosure process; and
WHEREAS, upon passage, duly noticed public hearings, as required by law, will have been held by the Mayor and Board of Commissioners of the Town of West New York, at which public hearings all residents and interested persons were given an opportunity to be heard:
A. 
It is the purpose and intent of the Mayor and Board of Commissioners of the Town of West New York to establish a process to address the deterioration, crime and decline in value of Town neighborhoods caused by properties with defaulted mortgages located within the Town of West New York and to identify, regulate, limit and reduce the number of these properties located within the Town. It is the Mayor and Board of Commissioners of the Town of West New York's further intent to establish a registration requirement as a mechanism to protect neighborhoods from the negative impact and conditions that occur as a result of vacancy, lack of adequate maintenance and security and will provide a method to expeditiously identify a contact person for each property responsible for this protection.
B. 
It is not the intent of this article to determine the rights and liabilities of persons under agreements to which the Town is not a party. This article shall not be construed to alter the terms of any lease or other agreement between a landlord and a tenant or others relating to property that is the subject of this article, provided that no provision of any lease or other agreement shall be construed to excuse compliance with this article. Additionally, a violation of this article shall not in and of itself create a negligence per se standard or otherwise expand existing liability in tort for either a landlord or a tenant.
The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
ACCESSIBLE PROPERTY/STRUCTURE
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.
APPLICABLE CODES
To include, but not be limited to, the Town's Zoning Ordinance, the Town's Property Maintenance Ordinance, Solid Waste Ordinance, Residential and Commercial Recycling Ordinance, and the state and Town building and fire codes.[1]
BLIGHTED PROPERTY
A. 
Properties that have broken or severely damaged windows, doors, walls, or roofs which create hazardous conditions and encourage trespassing; or
B. 
Properties whose maintenance is not in conformance with the maintenance of other neighboring properties, causing a decrease in value of the neighboring properties; or
C. 
Properties cited for a public nuisance pursuant to the Town Codes; or
D. 
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 applicable codes.
CREDITOR
A mortgagee 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 foreclose 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, excluding governmental entities as assignee or owner.
[Added 4-27-2022 by Ord. No. 4/22; amended 7-13-2022 by Ord. No. 10/22]
DEFAULT
Shall mean that the mortgagor has not complied with the terms of the mortgage on the property, or the promissory note, or other evidence of the debt, referred to in the mortgage.
ENFORCEMENT OFFICER
Any law enforcement officer, Building Official, Zoning Official, Code Enforcement Officer, Fire Inspector, Building Inspector, or other person authorized by the Town to enforce the applicable code(s).
[2]
FORECLOSURE
The legal process by which a mortgagee, or other lien holder, terminates a property owner's equitable right of redemption to obtain legal and equitable title to the real property pledged as security for a debt or the real property subject to the lien. This definition shall include, but is not limited to, public notice of default, a deed in lieu of foreclosure, sale to the mortgagee or lien holder, certificate of title and all other processes, activities and actions, by whatever name, associated with the described process. The process is not concluded until the property obtained by the mortgagee, lien holder, or their designee, by certificate of title, or any other means, is sold to a nonrelated bona fide purchaser in an arm's-length transaction to satisfy the debt or lien.
MORTGAGEE
The creditor, including but not limited to trustees; mortgage servicing companies, lenders in a mortgage agreement; any agent, servant, or employee of the creditor; any successor in interest; or any assignee of the creditor's rights, interests or obligations under the mortgage agreement.
OWNER
Includes the title holder, any agent of the title holder having authority to act with respect to vacant/abandoned property, any foreclosing entity subject to the provisions of N.J.S.A. 46:10B-51, or any other entity determined by the Town of West New York to hold the authority to act with respect to the property.
[Amended 4-27-2022 by Ord. No. 4/22; 7-13-2022 by Ord. No. 10/22]
REAL PROPERTY
Any improved residential or commercial land, buildings, leasehold improvements and anything affixed to the land, or portion thereof identified by a property parcel identification number, located in the Town limits. Developed lots are considered improved land.
REGISTRABLE PROPERTY
A. 
Any real property located in the Town, whether vacant or occupied, that is encumbered by a mortgage in default, is subject to an ongoing foreclosure action by the mortgagee or trustee, has been the subject of a foreclosure action by a mortgagee or trustee and a judgment has been entered, or has 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.
B. 
The designation of a "default/foreclosure" property as "registrable" shall remain in place until such time as the property is sold to a nonrelated bona fide purchaser in an arm's length transaction or the foreclosure action has been dismissed and any default on the mortgage has been cured.
SEMIANNUAL REGISTRATION
Six months from the date of the first action that requires registration, as determined by the Town, or its designee, and every subsequent six months. The date of the initial registration may be different from the date of the first action that required registration.
VACANT AND ABANDONED PROPERTY
A property or parcel is considered vacant and abandoned when 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 of at least two conditions set forth under the definition for “vacant and abandoned property conditions” below. "Vacant property" does not mean property that is temporarily unoccupied while the residents are away on vacation, personal matters or business, or is not intended by the owner to be left vacant, so long as the period does not exceed 30 days.
[Amended 4-27-2022 by Ord. No. 4/22; 7-13-2022 by Ord. No. 10/22]
VACANT AND ABANDONED PROPERTY CONDITIONS
[Added 4-27-2022 by Ord. No. 4/22; amended 7-13-2022 by Ord. No. 10/22]
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.
[1]
Editor's Note: See Ch. 414, Zoning; Ch. 299, Property Maintenance; Ch. 348, Solid Waste Disposal; Ch. 306, Recycling; Ch. 135, Building Construction Standards; and Ch. 198, Fire Prevention.
[2]
Editor's Note: The former definition of "evidence of vacancy," which immediately followed this definition, was repealed 4-27-2022 by Ord. No. 4/22 and 7-13-2022 by Ord. No. 10/22.
These sections shall be considered cumulative and not superseding or subject to any other law or provision for same but rather be an additional remedy available to the Town above and beyond any other state or Town provisions for same.
[Amended 4-27-2022 by Ord. No. 4/22; 7-13-2022 by Ord. No. 10/22]
Pursuant to the provisions set forth under § 304-5, the Town or its designee shall establish a registry cataloging each "registrable property" and each "vacant and abandoned property" as defined by the information set forth in this article.
[Amended 4-27-2022 by Ord. No. 4/22; 7-13-2022 by Ord. No. 10/22]
A. 
Property registration program requirements.
(1) 
Any mortgagee who holds a mortgage on real property located within the Town shall perform an inspection of the property to determine vacancy or occupancy, upon default, as evidenced by a foreclosure filing, by the mortgagor. The mortgagee shall, within 10 days of the inspection, register the property with the Code Enforcement Department, or its designee, on forms or other manner as directed, 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.
(2) 
Registration pursuant to this section shall contain the name, direct mailing address, a direct contact name, telephone number, and email address for the mortgagee/trustee, and the mortgage servicer, the creditor, and the name and twenty-four-hour contact phone number of the local property management company responsible for the security and maintenance at the property and to make decisions regarding the abatement of nuisance conditions and any expenditures required at the property. A creditor filing a foreclosure action in connection with a residential or commercial property shall, in addition to providing notice as required by law, register the subject property with the Town's Property Registration Program, which shall require providing the following information: the creditor's contact information as set forth in this paragraph herein, the date the summons and complaint to foreclose on the mortgage was filed against the subject property, the court in which it was filed, the docket number of the filing, and whether it is "vacant and abandoned" as defined by § 304-2 of this article.
(3) 
Mortgagees who have existing registrable property on the effective date of this article have 30 calendar days from the effective date to register the property with the Code Enforcement Department, or its designee, on forms or other manner as directed, and indicate whether the property is vacant or occupied. A separate registration is required for each property, whether it is vacant or occupied.
(4) 
If the mortgage and/or servicing on a registrable property is sold or transferred, the new mortgagee is subject to all the terms of this article. Within 10 days of the transfer, the new mortgagee shall register the property or update the existing registration. The previous mortgagee(s) will not be released from the responsibility of paying all previous unpaid fees, fines, and penalties accrued during that mortgagee's involvement with the registrable property.
(5) 
A nonrefundable annual registration fee of $500 shall accompany each registration pursuant to this section. If a property falls within the definition for "vacant and abandoned" as provided under § 304-2, there shall be an annual registration fee of $2,000.
(6) 
If the mortgagee sells or transfers the registrable property in a non-arm's length transaction to a related entity or person, the transferee is subject to all the terms of this article. Within 10 days of the transfer, the transferee shall register the property or update the existing registration. Any and all previous unpaid fees, fines, and penalties, regardless of who the mortgagee was at the time registration was required, including, but not limited to, unregistered periods during the foreclosure process, are the responsibility of the transferee and are due and payable with the updated registration. The previous mortgagee will not be released from the responsibility of paying all previous unpaid fees, fines, and penalties accrued during that mortgagee's involvement with the foreclosed property.
(7) 
As long as the property is subject to registration with the Town's Property Registration Program, it shall be inspected monthly by the mortgagee, or designee. If an inspection shows a change in the property's occupancy status, the mortgagee shall update the occupancy status of the property registration within 10 days of that inspection.
(8) 
Each individual property on the registry that has been registered for six months or more prior to the effective date shall have 30 days to renew the registration and pay the nonrefundable $500 annual registration fee. Properties registered less than six months prior to the effective date shall renew the registration upon expiration and every 12 months thereafter and shall pay the nonrefundable $500 annual registration fee.
(9) 
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.
(10) 
All registration fees must be paid directly from the mortgagee, trustee, servicer, or owner. Third-party registration fees are not allowed without the consent of the Town and/or its authorized designee.
(11) 
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 are registrable.
(12) 
Until the mortgage or lien on the property in question is satisfied, or legally discharged, the desire to pursue foreclosure, the filing of a dismissal of lis pendens and/or summary of final judgment and/or certificate of title, voluntary or otherwise, does not exempt any mortgagee holding the foreclosure mortgage from all the requirements of this article as long as the borrower is in foreclosure.
(13) 
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.
(14) 
Failure of the mortgagee to properly register or to modify the registration information 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 and any resulting monetary penalties and/or property liens.
(15) 
Pursuant to any administrative or judicial finding and determination that any property is in violation of this article, the Town 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.
(16) 
Properties subject to this article shall be in accordance with the applicable code(s) of the Town.
(17) 
The creditor filing a summons and complaint in an action to foreclose shall, if the registered property becomes "vacant and abandoned" as defined under § 304-2, 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.
(18) 
A creditor filing a summons and complaint for foreclosure against a property, the creditor shall be responsible for the care, maintenance, security, and upkeep of the exterior at the property, if it is "vacant and abandoned" at any time while the property is registered with the Town's Property Registration Program.
(19) 
A creditor located out of state shall be responsible for appointing an in-state representative or agent to act for the foreclosing creditor.
(20) 
A creditor filing a summons and complaint in an action to foreclose on a property that is or becomes "vacant and abandoned," relating to the care, maintenance, security, and upkeep of the exterior of the property, shall be required to maintain the property as required by the Town of West New York including but not limited to the requirements set forth within Chapter 299. The creditor is required to secure the premises against unauthorized entry and post a sign that is 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 purpose 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.
B. 
The Construction Official or his/her designee shall be 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 foreclose, if the Construction Official or his/her designee determines that the creditor has violated the provisions of this article. In the case of 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 public health and safety.
If any section, sentence, clause or phrase of this article is held to be invalid or unconstitutional by any court of competent jurisdiction, then said holding shall in no way affect the validity of the remaining portions of this article.
It is the intention of the Mayor and Board of Commissioners of the Town of West New York that the provisions of this article shall become and be made a part of the Town Code of Ordinances, and that the sections of this article may be renumbered or relettered to accomplish such intention, and the word "ordinance" may be changed to "section," "article," or such other appropriate word or phrase in order to accomplish such intentions.
This article shall take effect upon passage and publication as required by law (according to local and state requirements).
[Added 4-27-2022 by Ord. No. 4/22; amended 7-13-2022 by Ord. No. 10/22]
The Town is authorized to contract with and set the compensation of a private entity, pursuant to the Local Public Contracts Law, P.L. 1971, c. 198 (N.J.S.A. 40A:11-1 et seq.) to assist the Town in the implementation and administration of the property registration program established by this article. The Town may delegate to a private third-party entity any duties under the property registration program, including, without limitation, identifying properties located within the Town that are subject to the registration requirements set forth herein, maintaining and updating the property registrations for the Town, communicating with the creditors or the in-state representative or agent appointed by creditors located out of state of such properties, invoicing and collecting payment from the creditors for such properties any fees authorized and established by this article, and monitoring compliance with the registration requirements provided herein. The third-party unit may be authorized to conduct additional property registration services on behalf of the Town pursuant to a shared services agreement subject to the Uniform Shared Services and Consolidation Act, P.L. 2007, c. 63 (N.J.S.A. 40A:65-1 et seq.). Property registration fees imposed by this article and adopted by the Town pursuant to N.J.S.A. 40:48-2.12s3 shall be considered a municipal charge pursuant to the Tax Sale Law, N.J.S.A. 54:5-1 et seq., regardless of whether the fees are being collected by a third-party entity or by the Town directly. Contracts between the Town of West New York and a third-party entity are subject to rules and regulations adopted by the Local Finance Board of the Department of Community Affairs for such contracts entered with third-party entities for the implementation and administration of a municipal property registration program.
[Added 4-27-2022 by Ord. No. 4/22; amended 7-13-2022 by Ord. No. 10/22]
Notwithstanding the provisions of N.J.S.A 40A:5-15 to the contrary, the Town of West New York is authorized to contract with a third-party entity to be responsible for the collection of the property registration fees as set forth within this article. Such fees collected by the third-party entity shall be provided to the Town of West New York pursuant to the timeframe specified in the contract between the Town and the third-party entity. Amounts collected by the third-party entity on behalf of the Town shall be paid over in full to the Town without any amount deducted for payment for services rendered by the third party. Once the collected fees are paid to the Town, the officer charged with the custody of the Town's general funds shall deposit all such funds within 48 hours after the receipt thereof to the credit of the municipality in its designated legal depository. This amount shall include any additional amounts collected on the Town's behalf including interest and penalties assessed for late payment of property registration fees established within this article at the rate of interest and penalties rate fixed by the Town for late payment of property taxes, assessment, and other municipal charges as provided under N.J.S.A. 54:4-67. The third-party entity shall at least once a year, or as requested by the Town's municipal tax collector, file a certification as may be required by the tax collector to enforce tax liens for all unpaid property registration program fees due and owing at the time the certification is filed.
[Added 4-27-2022 by Ord. No. 4/22; amended 7-13-2022 by Ord. No. 10/22]
A. 
A Municipal Court summons shall be issued for any creditor that fails to comply with the property registration requirements as set forth within this article.
B. 
An out-of-state creditor subject to this article found by the Municipal Court of the Town of West New York, 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 article shall be subject to a fine of $2,500 for each day of the violation.
C. 
A creditor subject to this article found to be in violation by the Town of West New York Municipal Court, or by any other court of competent jurisdiction, excluding only a violation addressed by Subsection B of this section, shall be subject to a fine of $1,500 for each day of the violation. Any fines imposed pursuant to this paragraph 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.
D. 
Late payment of property registration fees established within this article shall be subject to the same rate of interest and penalties fixed by the Town for late payment of property taxes, assessment, and other municipal charges as provided under N.J.S.A. 54:4-67.
[Added 4-27-2022 by Ord. No. 4/22; amended 7-13-2022 by Ord. No. 10/22]
Twenty percent of all revenue generated by the application of this article shall be utilized for the sole purpose of carrying out municipal activities related to code enforcement, abatement of nuisance conditions, and other activities designed to minimize blight and/or promote the productive use of properties within the Town of West New York.