[HISTORY: Adopted by the City Council of
the City of Rahway 11-20-2017 by Ord. No. O-32-17[1]. Amendments noted where applicable.]
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 City Business Administrator or
his or her designee (both together throughout this chapter referred
to simply as the "City Business Administrator or his or her designee"),
that:
(1)
The property is in need of rehabilitation in the reasonable judgment
of the City Business Administrator or his or her designee and no rehabilitation
has taken place during that same six-month period; or
(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 City Business Administrator or his
or her designee pursuant to this section; or
(3)
At least one installment of property tax remains unpaid and delinquent
on that property as of the date of a determination by the City Business
Administrator or his or her designee pursuant to this section; or
(4)
The property has been determined to be a nuisance by the City Business
Administrator or his or her designee in accordance with N.J.S.A. 55:19-82
and may also be subject to the City of Rahway habitability hearing
process, pursuant to Chapter 94 of the City Code, 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 two-thirds 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
City Business Administrator or his or her designee.
A.
The City Business Administrator or his or her designee shall identify
abandoned property within the City of Rahway 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 City Business Administrator or his or her designee
may add properties to the abandoned property list at any time, and
may delete properties at any time when he or she 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 City of Rahway has purchased or taken assignment from the
City 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 City Business Administrator or his or her designee 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 City of Rahway, 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 City Business Administrator or his
or her designee, 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 City Business Administrator or
his or her designee'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 City Business Administrator or his or her designee in the office
of the Somerset 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 City of Rahway as "plaintiff" and
the name of the property owner as "defendant," as though an action
had been commenced by the City 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 City Business Administrator or his or her designee 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 City Business Administrator or his or her designee
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 City Business
Administrator or his or her designee 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 City Business Administrator
or his or her designee 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 City Business Administrator or his or her designee 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 City Business Administrator or his or her designee 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, Somerset County. Such action shall be instituted within 20 days of the date of the notice of decision mailed by the City Business Administrator or his or her designee. 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 City Business Administrator or his or her designee shall promptly
remove any property from the abandoned property list that has been
determined by him or on appeal not to be abandoned and may, in his
discretion, remove properties from said list whenever he deems such
removal appropriate under the circumstances.
G.
The abandoned property list shall become effective, and the City
of Rahway 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.
H.
The City may also, in addition to and irrespective of the actions
and limitations established by this chapter, continue to move forward
with the habitability hearing process established separately by Chapter
94 of the City Code, whether or not the property involved in that
process has also been placed on the abandoned property list.
A.
Any interested party may submit a written request to the City Business
Administrator or his or her designee asserting that any property within
the City of Rahway 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 City
Business Administrator or his or her designee 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 City of Rahway, any owner or operator
of a business within the City of Rahway 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 City Business Administrator
or his or her designee shall provide that party with at least 20 days'
notice of any such hearing. The party shall provide the City Business
Administrator or his or her designee 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 or her property from the abandoned
properties list prior to sale of the tax sale certificate by paying
all taxes and City 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 an environmental cleanup required on the property, evidenced
by a certification by a licensed engineer retained by the owner and
reviewed and approved by the City Business Administrator or his or
her designee, stating that the cash or bond adequately covers the
cost of the cleanup; or
(2)
By demonstrating to the satisfaction of both the City Business Administrator
or his or her designee and City Council that the conditions rendering
the property abandoned have been remediated in full; provided, however,
that where the City Business Administrator or his or her designee
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 City Business
Administrator or his or her designee 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 City 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 City 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 City of Rahway 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 City 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 City to guarantee the rehabilitation or repair
of the property. The City Business Administrator or his or her designee
may waive a requirement to post a bond imposed by the City for any
purchaser, assignee or transferee of a tax sale certificate that provides
documentation acceptable to the City Business Administrator or his
or her designee 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 City of Rahway, 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
City of Rahway harmless, has been filed with the City Business Administrator
or his or her designee.
C.
If the City of Rahway 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 City 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 City 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 City of Rahway in order to
ensure performance. The amount and conditions of the bond shall be
determined by the City Business Administrator or his or her designee.
D.
The cost of remediation incurred by the City of Rahway, 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 City, except for City 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 Somerset 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 City of Rahway 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 City Business Administrator or his or her designee, with the
advice and consent of the City Council, 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 City's plans and regulations;
commitments by the bidder to rehabilitate or otherwise reuse the property,
consistent with City's 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 City Business Administrator or his or
her designee, with the advice and consent of the City Council, 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 City Business Administrator or his or her designee, with the
advice and consent of the City Council, 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 City Business Administrator or his or her designee, with the
advice and consent of the City Council, 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 City Business Administrator or his or her designee, with the
advice and consent of the City Council, may sell said properties subject
to 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 City, and any
amount paid by the purchaser at the special tax sale shall be forfeited
to the City.
F.
In the event there are two or more qualified bidders for any property
or bid package in a special tax sale, the City 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 City pursuant to this section and his or her interest
in the property or properties reverts to the City, the City 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 City of Rahway 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 City pursuant to this section. Nothing shall
prohibit the City 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 City of Rahway 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 City of Rahway 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 City of Rahway has purchased or taken
assignment from the City 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 City 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 City Business Administrator
or his or her designee 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.
E.
Nothing in this chapter shall preclude the City from addressing concerns
regarding the condition of the property through the City of Rahway
habitability hearing process, established by Chapter 94 of the City
Code, irrespective of any ongoing foreclosure proceedings.
A.
A summary action or other action to transfer possession and control
of abandoned property in need of rehabilitation to the City of Rahway
may be brought by the City in the Superior Court, Somerset County.
If the Court shall find that the property is abandoned and that the
owner or party in interest has failed to submit and initiate a rehabilitation
plan, then the Court may authorize the City to take possession and
control of the property and to develop its own rehabilitation plan
for the property.
B.
Where the City has been granted possession and control, the City
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 City, obtain appropriate construction permits
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
evidence that the owner has failed to take any action to further the
rehabilitation of the property.
D.
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 City Business
Administrator or his or her designee or the Court to be the projected
cost of rehabilitation.
E.
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.
F.
Where the Court approves the rehabilitation plan of the owner or
other party in interest, then it may appoint the City Business Administrator
or his or her designee to act as monitor of compliance and progress.
If the owner fails to carry out any step in the approved plan, then
the City may apply to the Court to have the posted bond forfeited,
to transfer possession of the building to the City 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 City Business Administrator or his
or her designee on its activities and progress toward rehabilitation
and reuse of the property.
G.
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. Their 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.
H.
The mortgage holder or lienholder, as the case may be, shall provide
bimonthly reports to the Court and the City Business Administrator
or his or her designee 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 City
Business Administrator or his or her designee shall notify the Court,
which may order the posted bond forfeit, grant the City possession
of the property, and authorize the City to use the proceeds of the
bond for rehabilitation of the property.
I.
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.
J.
If no mortgage holder or lienholder meets the conditions of N.J.S.A.
55:19-88, then the City 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 City 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 City Business Administrator or his or her designee, with the
advice and consent of the City Council, may designate a qualified
rehabilitation entity for the purpose of exercising the City's
rights, where that designation will further the rehabilitation and
reuse of the property consistent with City's plans and objectives.
B.
Regardless of whether the City exercises its rights directly or the
City Business Administrator or his or her designee designates a qualified
rehabilitation entity pursuant to this section, while in possession
of a property, the City shall maintain, safeguard, and maintain insurance
on the property. Notwithstanding the City'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.
C.
The Court may approve the borrowing of funds by the City of Rahway
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 City sought to obtain the necessary financing from the senior
lienholder, which declined to provide such financing on reasonable
terms;
(2)
The City 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 Somerset
County.
D.
Where the City has designated a qualified rehabilitation entity to
act on its behalf, the qualified rehabilitation entity shall provide
bimonthly reports to the City Business Administrator or his or her
designee on its activities and progress toward rehabilitation and
reuse of the property. The City 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 City
or its designee has failed to take diligent action toward rehabilitation
of the property within one year from the grant of possession, then
the Court may request the City to designate another qualified rehabilitation
entity to exercise its rights, or if the City fails to do so, may
terminate the order of possession and return possession and control
of the property to its owner.
E.
The City of Rahway 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 City 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 City
Business Administrator or his or her designee, 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.
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
Court's removal of possession, but no later than 30 days after
the City of Rahway 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 City
has filed said notice.
B.
The Court may allow additional time for good cause if that additional
time does not materially delay completion of the rehabilitation, place
undue hardship on the City or affect any of the terms or conditions
under which the City has applied for or received financing for the
rehabilitation of the property.
C.
If the owner fails to petition for the reinstatement of control and
possession of the property within 30 days after the City 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,
the Court may grant the City title or authorize the City to sell the
property, subject to the provisions of N.J.S.A. 55:19-96.
A.
The City Business Administrator or his or her designee, with the
approval of the Court, may place a lien on the property to cover any
costs of the City in connection with any proceeding under N.J.S.A.
55:19-78 et seq. 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. Any such lien shall be considered a City lien for the purposes
of N.J.S.A. 54:5-9, with the rights and status of a City lien pursuant
thereto.
B.
Where the City 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.
C.
The Court may authorize the City of Rahway 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.
Upon approval by the Court, the City 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.
E.
With the exception of the holding of special tax sales pursuant to
N.J.S.A. 55:19-101, the remedies available under N.J.S.A. 55:19-78
et seq. shall be available to the City with respect to any abandoned
property, whether or not the City has established an abandoned property
list and whether or not the property at issue has been included on
any such list.
No provision of this chapter shall be construed as restricting
or otherwise abrogating the enforcement and other powers of the City's
Construction Code Official under the New Jersey Uniform Construction
Code, including without limitation N.J.S.A. 52:27D-123 et seq., and
N.J.A.C. 5:23-1.1 et seq. (collectively, the "Code"). The provisions
of this chapter shall be construed as consistent with the enforcement
and other powers of the City's Construction Code Official under
the Code.
