Orange Township, NJ Article XVIII Abandoned Property

[Added 5-4-2004 by Ord. No. 13-2004]

§ 156-97 Defined; criteria for declaring abandoned.

An abandoned property is hereby defined as one that has not been legally occupied for a period of six (6) months and meets one of the following criteria:

A. The property is in need of rehabilitation and has not been rehabilitated during the unoccupied period,

B. Construction has been initiated on the property in the past, but not for the six (6) month period,

C. The property has been in tax arrearage for at least one installment period, or

D. The property has been determined to be a nuisance by the public officer (nuisance includes a finding that the property is unfit for human habitation and/or is determined to be a fire hazard or potential health and safety hazard).

§ 156-98 Municipal acquisition of abandoned property.

A. The procedures for municipal acquisition of the abandoned property shall be that which is set forth in Assembly Bill substitute for 2543. This shall include the filing of a complaint in the Superior Court of New Jersey with a certification by the public officer that the property is abandoned. Thirty (30) days notice must be provided to the owner prior to the filing of a complaint.

B. The owner may defend against the complaint by submitting a plan for the rehabilitation and reuse of the property and by posting a bond equal to one hundred twenty-five percent (125%) of the amount determined by the public officer (Director of Planning and Development or his designee) to represent the project cost of rehabilitation. The plan requires a financial feasibility analysis, a budget and timetable for rehabilitation of the property and documentation of qualifications of those who will perform the rehabilitation.

C. The Court shall approve the plan if the plan is realistic and likely to result in the expeditious rehabilitation and reuse of the property and, correspondingly, the Court shall disapprove of the plan if unrealistic. If the Court approves the owner's plan, it may appoint the public officer to act as monitor of the owner's compliance. If the owner fails to carry out any step in the approved plan, the public officer shall notify the Court, which may order to bond forfeit, grant the municipality possession of the property, and authorize the municipality to use the proceeds of the bond for rehabilitation of the property.

D. The owner shall provide quarterly reports to the municipality and the Court on the owner's progress toward rehabilitation and reuse of the property.

E. If an owner fails to successfully defend against a complaint, a mortgage holder or lien holder may seek to be designated in possession for the property by submitting a plan and posting a bond meeting the same conditions described above. If no mortgage holder or lien holder meets these conditions, the municipality shall submit a plan which shall designate an entity that shall implement the plan. This entity may be the municipality or a qualified rehabilitation entity, organized or authorized to do business under New Jersey law, which shall have as one of its purposes the construction or rehabilitation of residential or nonresidential buildings, the provision of affordable housing and the restoration of abandoned property, among others.

F. If the municipality is granted possession of a property under this Article, the municipality shall be deemed to have an ownership interest in the property for the purpose of filing plans with public agencies and any state program of grants or loans. Where the municipality borrows funds for the express purpose of rehabilitating the property, the Court may authorize the municipality to grant a lien or security interest with priority over all other liens or mortgages other than municipal liens.

G. With the granting of possession by the Court to a municipality of a property determined to be abandoned, the owner shall continue to be responsible for all taxes or other municipal liens and charges, or mortgages or liens to any party, incurred on the property, whether those taxes, charges or liens are incurred before or after the granting of possession. Nor shall the owner be relieved of any operating or maintenance expense associated with the property. Similarly, although the municipality is required to maintain, safeguard, and maintain insurance on the property, the owner shall not be relieved of any civil or criminal liability or any duty imposed by reason of acts or omissions of the owner relating to the property.

H. The municipality is authorized to seek Court approval to assign its rights to another entity, which may be granted under the circumstances enumerated in this Article.

I. An owner may petition for reinstatement of the owner's control and possession of the property. The petition's requirements and conditions shall be determined by the Court for reinstating the owner's rights.

J. If the municipality sells the property, this Article sets forth the order of distribution of the proceeds of such a sale. This Article authorizes the public officer, with the approval of the Court, to place a lien on the property to cover any costs of the municipality incurred prior to the granting by the Court of an order of possession, which may include costs incurred to stabilize or secure the property.

K. This Article authorizes municipalities to hold special tax sales with respect to those properties eligible for tax sale under R.S. 54:5-19 which are also on an abandoned property list and sets forth procedures governing those special tax sales. In the case of any eminent domain proceeding carried out under section 37 of P.L. 1966, c. 62 (C. 55:19-56), this Article establishes the parameters for establishing fair market value.