[Adopted 10-9-2014 by Ord. No. 2014-8]
As used in this article, the following terms shall have the
meanings indicated:
Consistent with Section 3 of P.L. 2008, c.86,[1] a state-chartered bank, savings bank, savings and loan
association or any credit union, any person required to be licensed
under the provisions of the New Jersey Residential Mortgage Lending
Act,[2] and any entity acting on behalf of the creditor named
in the debt obligation, including, but not limited to, servicers.
The process by which a property, placed as security for a
mortgage loan, after judicial process, is to be sold to satisfy a
debt upon which a borrower or mortgagor has defaulted.
[Added 1-8-2015 by Ord. No. 2014-12]
The individual property manager or company designated by
the mortgagee as being responsible for the maintenance of vacant and
abandoned property.
[Added 1-8-2015 by Ord. No. 2014-12]
Any improved real property, or portion thereof, situated
in the Borough, designed or permitted to be used for dwelling purposes,
and shall further include the buildings and structures located on
such improved real property.
[Added 1-8-2015 by Ord. No. 2014-12]
Consistent with Section 1 of P.L. 2010, c.70 (N.J.S.A. 2A:50-73), residential real estate for which a notice of violation has been issued pursuant to § 358-32 of this chapter and Subsection b of Section 1 of P.L. 2014, c.35[3]. Residential property shall further be deemed "vacant
and abandoned" where a mortgaged property is not occupied by a mortgagor
or tenant and at least two of the following conditions exist:
Overgrown or neglected vegetation;
The accumulation of newspapers, circulars, flyers or mail on
the property;
Disconnected gas, electric, or water utility services to the
property;
The accumulation of hazardous, noxious, or unhealthy substances
or materials on the property;
The accumulation of junk, litter, trash or debris on the property;
The absence of window treatments such as blinds, curtains or
shutters;
The absence of furnishings and personal items;
Statements of neighbors, delivery persons, or government employees
indicating that the residence is vacant and abandoned;
Windows or entrances to the property that are boarded up or
closed off or multiple window panes that are damaged, broken and unrepaired;
Doors to the property that are smashed through, broken off,
unhinged, or continuously unlocked;
A risk to the health, safety or welfare of the public, or any
adjoining or adjacent property owners, exists due to acts of vandalism,
loitering, criminal conduct, or the physical destruction or deterioration
of the property;
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;
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;
A written statement issued by any mortgagor expressing the clear
intent of all mortgagors to abandon the property; and
Any other reasonable indicia of abandonment.
A.
A creditor filing a summons and complaint in an action to foreclose
on a residential property within the Borough shall be immediately
responsible for the care, maintenance, security, and upkeep of the
exterior of the property after the property becomes vacant and abandoned
as defined in this chapter.
B.
Where a creditor is located out of state, the creditor shall be responsible for appointing an in-state representative or agent to act on the creditor's behalf for the purpose of satisfying the requirements of Subsection A of this section. Notice of said representative or agent shall be provided to the Borough Clerk in a manner that is consistent with Subsection a of Section 17 of P.L. 2008, c. 127 (the "Save New Jersey Homes Act of 2008"),[1] and shall further include the full name and contact information
of the in-state representative or agent.
[1]
Editor's Note: See N.J.S.A. 46:10B-51.
[Amended 1-8-2015 by Ord. No. 2014-12]
A.
Any public officer designated by the Borough or authorized municipal official responsible for the administration of any property maintenance or public nuisance code shall be authorized to issue a notice to a creditor that has filed a summons and complaint in an action to foreclose on a residential property within the Borough if the public officer determines that the creditor has violated this chapter by failing to provide for the care, maintenance, security, and upkeep of the exterior of the property. Where a creditor is an out-of-state creditor, the notice shall be issued to the representative or agent that has been identified by the creditor pursuant to § 358-31 of this chapter and the Save New Jersey Homes Act of 2008.[1]
[1]
Editor's Note: See N.J.S.A. 46:10B-36 et seq.
A.
Purpose and intent.
(1)
It is the purpose and intent of this article to establish
a process to address the deterioration, crime and decline in value
of the Borough neighborhoods caused by property with defaulted mortgages
located within the Borough and to identify, regulate, limit and reduce
the number of these properties located within the Borough. It is the
Borough'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 to provide a method to expeditiously identify a contact
person for each property responsible for this protection.
(2)
It is not the intent of this article to determine the
rights and liabilities of persons under agreements to which the Borough
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 negligence per se
standard or otherwise expand existing liability in tort for either
a landlord or a tenant.
B.
ACCESSIBLE PROPERTY/STRUCTURE
APPLICABLE CODES
BLIGHTED PROPERTY
(1)
(2)
(3)
(4)
ENFORCEMENT OFFICER
EVIDENCE OF VACANCY
DEFAULT
FORECLOSURE
MORTGAGEE
LOCAL AGENT
OWNER
REAL PROPERTY
REGISTRABLE PROPERTY
(1)
(2)
SEMIANNUAL REGISTRATION
VACANT
Definitions. The following words, terms and phrases, when
used in this article, shall have the meanings ascribed to them in
this section, except where the context clearly indicates a different
meaning:
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.
Includes, but is not limited to, the Borough's Zoning
Code, the Borough's Property Rehabilitation and Maintenance Code,
Neighborhood Improvement Ordinance, Solid Waste Ordinance, Residential
and Commercial Recycling Ordinance, and the State and Borough Building
and Fire Codes.
Properties that have broken or severely damaged windows,
doors, walls, or roofs which create hazardous conditions and encourage
trespassing; or
Properties whose maintenance is not in conformance
with the maintenance of other neighboring properties, causing a decrease
in value of the neighboring properties; or
Properties cited for a public nuisance pursuant to
the Borough codes; or
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.
Any law enforcement officer, Building Official, Zoning Inspector,
Code Enforcement Officer, Fire Inspector or Building Inspector, or
other person authorized by the Borough to enforce the applicable code(s).
Any condition that, on its own or combined with other conditions
present, would lead a reasonable person to believe that the property
is vacant. Such conditions may include, but are not limited to: overgrown
and/or dead vegetation; past-due utility notices and/or disconnected
utilities; accumulation of trash, junk or debris; abandoned vehicles,
auto parts or materials; the absence of furnishings and/or personal
items consistent with habitation or occupancy; the presence of an
unsanitary, stagnant swimming pool; the accumulation of newspapers,
circulars, flyers and/or mail; or statements by neighbors, passers-by,
delivery agents or government agents; or the presence of boards over
doors, windows or other openings in violation of applicable code.
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.
The legal process by which a mortgagee, or other lienholder,
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 lienholder,
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, lienholder,
or their designee, by certificate of title or any other means, is
sold to a nonrelated bonafide purchaser in an arm's length transaction
to satisfy the debt or lien.
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.
The agent designated by the mortgagee upon registration as
required by this article. The local agent or its employee must be
located within the county and be available for the service of notices
during regular working hours and business week (8:00 a.m. to 5:00
p.m., Monday through Friday). Post office boxes are not acceptable.
Any person, firm, corporation or other legal entity who,
individually or jointly or severally with others, holds the legal
or beneficial title to any building, facilities, equipment or premises
subject to the provisions of this article.
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 Borough limits. Developed lots are considered improved land.
Any real property located in the Borough, 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 judgement 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.
The designation of a "default/foreclosure" property
as "registrable" shall remain in place until such time as the property
is sold to a nonrelated bonafide purchaser in an arm's length
transaction or the foreclosure action has been dismissed and any default
on the mortgage has been cured.
Six months from the date of the first action that requires
registration, as determined by the Borough or its designee, and every
subsequent six months. The date of the initial registration may be
different than the date of the first action that required registration.
Any parcel of land in the Borough that contains any building
or structure that is not lawfully occupied or inhabited by human beings
as evidenced by the conditions set forth in the definition of "evidence
of vacancy" above, which is without lawful tenant, or lawful occupant
or without a certificate of occupancy. 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 thirty
(30) days.
C.
Applicability. This article shall be considered cumulative
and not superseding or subject to any other law or provision for same,
but rather shall be an additional remedy available to the Borough
above and beyond any other state or Borough provisions for same.
D.
Establishment of a registry. Pursuant to the provisions of § 358-33, the Borough or its designee shall establish a registry cataloging each registrable property within the Borough, containing the information required by this article.
E.
Registration of defaulted mortgage real property.
(1)
Any mortgagee who holds a mortgage on real property located
within the Borough shall perform an inspection of the property to
determine vacancy or occupancy, upon default by the mortgagor. The
mortgagee shall, within ten 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 e-mail address for the mortgagee/trustee, and the mortgage servicer,
and the name and twenty-four-hour contact phone number of the local
property management company responsible for the security and maintenance
of the property who has the authority to make decisions concerning
the abatement of nuisance conditions at the property, as well as any
expenditure in connection therewith. Registrations will include a
local agent's name, mailing address, telephone number and e-mail
address. Mailing addresses may not be a post office box.
(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 on a registrable property is sold or transferred,
the new mortgagee is subject to all the terms of this article, and
within 10 days shall update the existing registration. Any previous
unpaid registration fees are the responsibility of the new mortgagee
or trustee and are due and payable with their initial registration.
Except if it is determined that the transferee is exempt from paying
fees, then the previous mortgagee will not be released from the responsibility
of paying all previous unpaid fees and fines, regardless of who the
mortgagee was at the time when registration was required, including,
but not limited to, unregistered periods during the foreclosure process.
The provisions of this section are cumulative with and in addition
to other available remedies. Moreover, the Code Enforcement Department
is authorized and empowered to refer the previous mortgagee's
non-payment of previous fees and fines to the Code Enforcement Special
Magistrate or a court of competent jurisdiction for disposition.
(5)
If the servicing rights for a mortgage on a registrable
property are sold or transferred, the registration must be updated
to include all the new servicer information within 10 days of the
servicing transfer.
(6)
If the mortgagee owner of a foreclosed real property sells
or transfers the property to a non-arm's-length related person
or entity, the transferee is subject to all the terms of this article
and within 10 days shall update the existing registration. Any previous
unpaid registration fees are the responsibility of the new registrable
property owner and are due and payable with their initial registration.
Except if it is determined that the transferee is exempt from paying
fees, then the previous mortgagee will not be released from the responsibility
of paying all previous unpaid fees and fines, regardless of who the
mortgagee was at the time when registration was required, including,
but not limited to, unregistered periods during the foreclosure process.
The provisions of this section are cumulative with and in addition
to other available remedies. Moreover, the Code Enforcement Department
is authorized and empowered to refer the previous mortgagee's
nonpayment of previous fees and fines to the Code Enforcement Special
Magistrate or a court of competent jurisdiction for disposition.
(7)
As long as the property is registrable, it shall be inspected
by the mortgagee, or designee, monthly. If an inspection shows a change
in the property's occupancy status, the mortgagee shall, within
10 days of that inspection, update the occupancy status of the property
registration.
(8)
A nonrefundable registration fee of $500 shall accompany
each registration pursuant to this section.
(9)
If a lis pendens, deed in lieu of foreclosure, or other
public notice of foreclosure is filed on a property and the property
was not registered and the registration fee paid at least 30 days
prior to the filing date, a late fee of $100 shall be charged per
property and shall be due and payable with the registration. The aforementioned
late fee of $100 shall also apply to registration renewals delinquent
by more than 30 days from the renewal date. Registrations delinquent
greater than 30 days are also subject to additional fines as described
herein.
(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 Borough and/or its
authorized designee.
(11)
Properties subject to this section shall remain
under the semiannual 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 no longer 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 defaulted mortgage from
all the requirements of this article as long as the borrower is in
default.
(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 Borough 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 maintained
in accordance with the applicable sections of the Borough Code.
[Added 1-8-2015 by Ord. No. 2014-12]
A.
Properties subject to this section shall be kept free of weeds, overgrown
brush or dead vegetation over the height limitations imposed by the
Borough Code, trash, junk, debris, building materials, any accumulation
of newspapers, circulars, flyers, notices, except those required by
federal, state, or local law, discarded personal items, including,
but not limited to, furniture, clothing, large and small appliances,
or any other items that give the appearance that the property is abandoned
or not being properly maintained.
B.
The property shall be maintained free of graffiti or similar markings
by removal or painting over with an exterior grade paint that matches
the color of the exterior structure. Yards shall be landscaped and
maintained pursuant to the standards set forth in the Code. Landscaping
shall include, but not be limited to, grass, ground cover, bushes,
shrubs, hedges or similar plantings, decorative rock or bark or artificial
turf/sod designed specifically for residential, commercial or industrial
installation, as applicable. Landscaping shall not include weeds,
gravel, broken concrete, asphalt or similar material.
C.
Maintenance shall include, but not be limited to, watering, irrigation,
cutting and mowing of required landscape and removal of all trimmings
and weeds.
D.
Pools and spas shall be kept in working order so that pool and spa
water remains free and clear of pollutants and debris. Pools and spas
shall comply with the enclosure requirements of the Borough Code and
the State of New Jersey Building Code.
[Added 1-8-2015 by Ord. No. 2014-12]
A.
Any public officer designated by the Borough or authorized municipal
official responsible for the administration of any property maintenance
or public nuisance code shall be authorized to issue a notice to a
mortgagee that has registered a vacant and abandoned property with
the Borough and has violated this chapter by failing to provide for
the care, maintenance, security, and upkeep of the exterior of the
property. Said public officer or authorized municipal official shall
also be authorized to issue a notice to a mortgagee that has failed
to register a vacant and abandoned property with the Borough, in accordance
with this chapter.
A.
A creditor subject to this chapter that is found by the Municipal Court of the Borough, or by any other court of competent jurisdiction, to be in violation of § 358-31 and is cited in a notice issued pursuant to this chapter shall be subject to a minimum fine of $50 and not to exceed $1,500 for each day of the violation. Any fines imposed pursuant to this subsection shall commence 31 days following the creditor's receipt of the notice, except where the violation is deemed to present an imminent risk to the public health and safety, in which case any fines shall commence 11 days following receipt of the notice.
[Amended 1-8-2015 by Ord. No. 2014-12; 10-13-2016 by Ord. No. 2016-6]
B.
An out-of-state creditor subject to this chapter that is found by
the Municipal Court of the Borough, or by any other court of competent
jurisdiction, to be in violation of the requirement to appoint an
in-state representative or agent shall be subject to a minimum fine
of $50 and not to exceed $2,500 for each day of the violation. Any
fines imposed on an out-of-state creditor for the failure to appoint
an in-state representative or agent shall commence on the day after
the ten-day period set forth in Paragraph (1) of Subsection a of Section
17 of P.L. 2008, c.127 (N.J.S.A. 46:10B-51), for providing notice
to the Municipal Clerk that a summons and complaint in an action to
foreclose on a mortgage has been served.
[Amended 10-13-2016 by Ord. No. 2016-6]
C.
A mortgagee subject to this chapter that is found by the Municipal Court of the Borough, or by any other court of competent jurisdiction, to be in violation of § 358-32 or § 358-33 and is cited in a notice issued pursuant to this chapter shall be subject to a minimum fine of $50 and not to exceed $500 for each day of the violation.
[1]
Editor's Note: This ordinance also redesignated former
Subsection C as Subsection D.
D.
No less than 20% of any money collected by the Borough pursuant to
this section shall be utilized by the Borough for municipal Code enforcement
purposes.
