[Adopted 11-15-2018 by Ord. No. 24-18]
For the purposes of this article, the following terms, phrases,
words and their derivations shall have the meanings given herein.
When consistent with the context, words used in the present tense
include the future, words in the plural include the singular, and
words in the singular include the plural. The word "shall" is always
mandatory and not merely directory.
Pursuant to N.J.S.A. 55:19-81, is defined as follows: any
property that has not been legally occupied for a period of six months
and which meets any one of the following additional criteria may be
deemed to be abandoned property upon a determination by the public
officer that:
The property is in need of rehabilitation in the reasonable
judgment of the public officer, and no rehabilitation has taken place
during that six-month period;
Construction was initiated on the property and was discontinued
prior to completion, leaving the building unsuitable for occupancy,
and no construction has taken place for at least six months as of
the date of a determination by the public officer pursuant to this
section;
At least one installment of property tax remains unpaid and
delinquent on that property in accordance with Chapter 4 of Title
54 of the Revised Statutes of the date of the determination by the
public officer pursuant to this section; or
The property has been determined to be a nuisance by the public officer in accordance with § 5 of P.L. 2003, c. 210 (N.J.S.A. 55:19-82). A property which contains both residential and nonresidential space may be considered abandoned pursuant to P.L. 2003, c. 210 (N.J.S.A. 55:19-78 et al.) so long as 2/3 or more of the total net square footage of the building was previously legally occupied as residential or commercial space and none of the residential or commercial space has been legally occupied for at least six months at the time of the determination of abandonment by the public officer and the property meets the criteria of either Subsection A or D of this definition.
The City of Long Branch.
The creditor having a right of foreclosure, including but
not limited to the holder of a mortgage on a property, and any agent,
servant or employee of the creditor, a loan servicing company, or
any successor in interest and/or assignee of the creditor's rights,
interests or obligations under the document granting foreclosure rights.
Consecutive calendar days.
The process by which property, placed as security for a real
estate loan, is prepared for sale to satisfy the debt if the borrower
defaults.
Any commercial, industrial and mixed-use real estate, or
portion thereof, located in the City of Long Branch, including improvements
thereon.
Any common nuisance known as common law or inequity jurisprudence
or as provided by the Statutes of the State of New Jersey or the ordinances
of the City.
Any attractive nuisance which may prove detrimental to the health
or safety of children, whether in a building, on the premises of a
building or upon an unoccupied lot. This includes, but is not limited
to, abandoned wells, shafts, basements, excavations, abandoned iceboxes,
refrigerators, motor vehicles, boats, any structurally unsound fences
or structures, lumber, trash, fences, debris or vegetation, such as
poison ivy, oak or sumac, which may prove a hazard for inquisitive
minors.
Physical conditions dangerous to human life or detrimental to
health of persons on or near the premises where the conditions exist.
Insufficient ventilation or illumination in violation of this
Code.
Inadequate or unsanitary sewage or plumbing facilities in violation
of this Code.
Unsanitary conditions or anything offensive to the senses or
dangerous to health in violation of this Code.
Fire hazards.
Any person who, alone or jointly with several others, shall
have legal or equitable title to any premises, with or without accompanying
actual possession thereof, or who shall have charge, care or control
of any property unit as owner or agent of the owner as lessee, executor,
executrix, administrator, administratrix, trustee, receiver or guardian
of the estate or as a foreclosing mortgagee or mortgagee in possession,
regardless of how that possession was obtained. Any person who is
a lessee subletting or assigning any part of any property or property
unit shall be deemed to be co-owner with the lessor and shall have
joint responsibility over the portion of the premises sublet or assigned
by said lessee.
Any real estate, including residential, commercial, industrial
and mixed use, or portion thereof, located in the City of Long Branch,
including any improvements thereon and land appurtenant thereto.
The City's Business Administrator and/or his/her designee
shall serve as the public officer (as defined in N.J.S.A. 55:19-80)
to carry out the responsibilities under this article.
A.
Except as provided in N.J.S.A. 55:19-83, a property will be deemed
"abandoned" if the property, as determined by the public officer:
(1)
Has not been legally occupied for a period of six months; and
(2)
Meets any one of the following additional criteria:
(a)
The property is in need of rehabilitation in the reasonable
judgment of the public officer and no rehabilitation has taken place
during that same six-month period; or
(b)
Construction was initiated on the property and was discontinued
prior to completion, leaving the building unsuitable for occupancy,
and no construction has taken place for at least six months as of
the date of a determination by the public officer pursuant to this
section; or
(c)
At least one installment of property tax remains unpaid and
delinquent on that property as of the date of a determination by the
public officer pursuant to this section; or
(d)
The property has been determined to be a nuisance by the public
officer in accordance with N.J.S.A. 55:19-82 if:
[1]
The property has been found to be unfit for human habitation,
occupancy or use pursuant to N.J.S.A. 40:48-2.3;
[2]
The condition and vacancy of the property materially increases
the risk of fire to the property and adjacent properties;
[3]
The property is subject to unauthorized entry leading to potential
health and safety hazards; the owner has failed to take reasonable
and necessary measures to secure the property; or the municipality
has secured the property in order to prevent such hazards after the
owner has failed to do so;
[4]
The presence of vermin or the accumulation of debris, uncut
vegetation or physical deterioration of the structure or grounds have
created potential health and safety hazards and the owner has failed
to take reasonable and necessary measures to remove the hazards; or
[5]
The dilapidated appearance or other condition of the property
materially affects the welfare, including the economic welfare, of
the residents of the area in close proximity to the property, and
the owner has failed to take reasonable and necessary measures to
remedy the conditions.
B.
A property which contains both residential and nonresidential space
may be considered abandoned pursuant to APRA so long as 2/3 or more
of the total net square footage of the building was previously legally
occupied as residential space and none of the residential space has
been legally occupied for at least six months at the time of the determination
of abandonment by the public officer.
A.
The public officer shall identify abandoned property within the City
of Long Branch for the purpose of establishing and maintaining 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 public officer 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 Long Branch 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 public officer 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 Long Branch,
which publication shall constitute public notice, and, within 10 days
after publication, shall send a notice, by certified mail, return
receipt requested, and by regular mail, to the owner of record of
every property included on the list. The published and mailed notices
shall identify property determined to be abandoned setting forth the
owner of record, if known, the tax lot and block number and street
address. The public officer, in consultation with the tax collector,
shall also send out a notice by regular mail to any mortgagee, servicing
organization, or property tax processing organization that receives
a duplicate copy of the tax bill pursuant to 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 public officer'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 public officer in the
office of the Monmouth 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 Long Branch 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.
The public officer, within 10 days of the establishment of the abandoned
property list, or any additions thereto, shall send by regular mail,
facsimile or electronic mail, a copy of the abandoned property list
to the electric and gas utilities serving the municipality.
E.
An owner or lienholder may challenge the inclusion of his property
on the abandoned property list by appealing that determination to
the public officer within 30 days of the owner's receipt of the certified
notice or 40 days from the date upon which the notice was sent. An
owner whose identity was not known to the public officer shall have
40 days from the date upon which notice was published or posted, whichever
is later, to challenge the inclusion of a property on the abandoned
property list. For good cause shown, the public officer shall accept
a late filing of an appeal. Within 30 days of receipt of a request
for an appeal of the findings contained in the notice, the public
officer shall schedule a hearing for redetermination of the matter.
Any property included on the list shall be presumed to be abandoned
property unless the owner, through the submission of an affidavit
or certification 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 public officer
shall decide any timely filed appeal within 10 days of the hearing
on the appeal and shall promptly, by certified mail, return receipt
requested, and by regular mail, notify the property owner of the decision
and the reasons therefor.
F.
The property owner may challenge an adverse determination of an appeal with the public officer 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, Monmouth County. Such action shall be instituted within 20 days of the date of the notice of decision mailed by the public officer. 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.
G.
The public officer shall promptly remove any property from the abandoned
property list that has been determined by him or her on appeal not
to be abandoned and may, in his or her discretion, remove properties
from said list whenever he or she deems such removal appropriate under
the circumstances.
H.
The abandoned property list shall become effective, and the City
of Long Branch 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.
I.
The City may also, in addition to and irrespective of the actions
and limitations established by this article, continue to move forward
with the habitability hearing process, 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 public officer
asserting that any property within the City of Long Branch 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 public officer 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 Long Branch, any owner or
operator of a business within the City of Long Branch 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 public officer shall
provide that party with at least 20 days' notice of any such hearing.
The party shall provide the public officer with notice at least 10
days before the hearing of its intention to participate, and the nature
of the testimony or other information that it proposes to submit at
the hearing.
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 Long Branch 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 Long Branch,
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 Long Branch
harmless, has been filed with the City Business Administrator or his
or her designee.
C.
If the City of Long Branch 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
Long Branch 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 Long Branch, 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 Monmouth County Clerk.
E.
The clearance, development, redevelopment, or repair of property
being maintained as an abandoned property pursuant to this article
shall be considered a public purpose and public use for which the
power of eminent domain may be lawfully exercised.
A.
The City of Long Branch 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 the City's plans and regulations;
commitments by the bidder to rehabilitate or otherwise reuse the property,
consistent with the 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 Long Branch 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 Long Branch 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 Long Branch 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 Long Branch 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 article 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 article shall preclude the City from addressing concerns
regarding the condition of the property through the City of Long Branch
habitability hearing process, 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 Long
Branch may be brought by the City in the Superior Court, Monmouth
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 attorneys' 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 the 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 Long
Branch 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 Monmouth 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 Long Branch 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
Long Branch 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 Long Branch 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 article 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 article shall be construed as consistent with the enforcement
and other powers of the City's Construction Code Official under the
Code.
The provisions of this article are declared to be severable
and if any section, subsection, sentence, clause or phrase thereof
for any reason be held to be invalid or unconstitutional by a court
of competent jurisdiction, such decision shall not affect the validity
of the remaining sections, subsections, sentences, clauses and phrases
of this article, but shall remaining in effect; it being the legislative
intent that this article shall stand notwithstanding the invalidity
of any part.
