Township of Union, NJ Article II Residential Property in Foreclosure

§ 11-2 REGISTRATION AND MAINTENANCE OF VACANT AND ABANDONED RESIDENTIAL PROPERTIES IN FORECLOSURE BY CREDITORS.

§ 11-2.1 Purpose.

[Ord. No. 2016-4]

The purpose of this section is to create a regulation regarding registration and maintenance of vacant and abandoned residential properties in foreclosure.

§ 11-2.2 Definitions.

[Ord. No. 2016-4]

a. Creditor shall mean a Federal or State chartered bank, savings and loan association or credit union, any person or entity required to be licensed under the provisions of the "New Jersey Residential Mortgage Act," P.L. 2009, c. 53 (C. 17:11C-51 et seq.), any foreclosing entity subject to the provisions of C.46:10B-51 (P.L. 2008, c. 127, Sec. 17, as amended from time to time) and any entity acting on behalf of the creditor named in the debt obligation including, but not limited to, services.

b. Vacant and abandoned residential property shall mean, consistent with N.J.S.A. 2A:50-73, residential real estate, where a notice of violation has been issued pursuant to N.J.S.A. 40:48-2.12s(1)(b). 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:

1. Overgrown or neglected vegetation;

2. The accumulation of newspapers, circulars, flyers or mail on the property;

3. Disconnected gas, electric, or water utility services to the property;

4. The accumulation of hazardous, noxious, or unhealthy substances or materials on the property;

5. The accumulation of junk, litter, trash or debris on the property;

6. The absence of window treatments such as blinds, curtains or shutters;

7. The absence of furnishings and personal items;

8. Statements of neighbors, association management, delivery persons, or government employees indicating that the residence is vacant and abandoned;

9. Windows or entrances to the property that are boarded up or closed off or multiple window panes that are damaged, broken and unrepaired;

10. Doors to the property that are smashed through, broken off, unhinged, or continuously unlocked;

11. 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;

12. 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;

13. 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;

14. A written statement issued by any mortgagor expressing the clear intent of all mortgagors to abandon the property;

15. Any other reasonable indicia of abandonment.

c. A residential property shall not be considered "vacant and abandoned" if, on the property:

1. There is an unoccupied building which is undergoing construction, renovation or rehabilitation that is proceeding diligently to completion, and the building is in compliance with all applicable ordinances, codes, regulations, and statutes;

2. There is a building occupied on a seasonal basis, but otherwise secure; or

3. There is a building that is secure, but is the subject of a probate action, action to quiet title or other ownership dispute.

§ 11-2.3 Creditor Responsibility for Vacant and Abandoned Properties.

[Ord. No. 2016-4]

a. A creditor filing a summons and complaint in an action to foreclose on a residential property within the Township 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 § 11-2.2.

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 N.J.S.A. 2A:50-73(d)(1). Notice of said representative or agent shall be provided to the Municipal Clerk pursuant to N.J.S.A. 40:48-2.12(b)(3)&(4) and pursuant to N.J.S.A. 46:10B-51(a)(1).

c. A creditor filing a summons and complaint in an action to foreclose on a residential property within the Township shall post a sign affixed to the building indicating the name, address and telephone number of the owner, the owner's authorized agent for the purpose of service of process (if designated pursuant to § 11-2.3b of this section), and the person responsible for day-to-day supervision and management of the building, if such person is different from the owner holding title or authorized agent. The sign shall be of a size and placed in such a location as to be legible from the nearest public street or sidewalk, whichever is nearer, but shall be no smaller than 18 inches by 24 inches.

§ 11-2.4 Property Inspection and Notice.

[Ord. No. 2016-4]

a. The owner and/or creditor of any vacant property shall provide access to the Township to conduct an exterior and interior inspection of the building to determine compliance with the Municipal Code following reasonable notice.

b. The enforcement officers designated in § 11-2.5 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 Township, if the enforcement officer determines that the creditor has violated this section by failing to provide the care, maintenance, security and upkeep of the exterior of a vacant and abandoned property, or otherwise fail to comply with this section.

c. 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 N.J.S.A. 2A:50-73(d)(2) and N.J.S.A. 46:10B-51(a)(1).

d. The notice referenced in § 11-2.4b and c shall require the creditor to correct the violation(s) within 30 days of receipt of the notice, or within 10 days of receipt of the notice if the enforcement officer has deemed the violation presents an imminent threat to public health and safety.

e. The issuance of a notice pursuant to § 11-2.4b and c of this section shall constitute proof that a residential property is vacant and abandoned for the purpose of this section.

§ 11-2.5 Enforcement Officers.

[Ord. No. 2016-4]

The duty of administering and enforcing the provisions of this section is conferred upon the Municipal Clerk, Construction Official, Zoning Officer, Board of Health and any other duly appointed representatives.

§ 11-2.6 Violations and Penalties.

[Ord. No. 2016-4]

a. A creditor subject to this section that is found by the Municipal Court of the Township, or by any other court of competent jurisdiction, to be in violation of the requirement to correct, care, maintenance, security, or upkeep violation cited in a notice issued pursuant to this section shall be subject to a fine of $1,500 for each day of the violation. Any fines imposed pursuant to this subsection shall commence 31 days following the receipt of the notice, except if the violation presents an imminent risk to public health and safety, in which case any fines shall commence 11 days following receipt of the notice.

b. An out-of-state creditor subject to this section that is found by the Municipal Court of the Township, or by any other court of competent jurisdiction, to be in violation of the requirement to appoint an in-state representative or agent pursuant to this section shall be subject to a fine of $2,500 for each day of the violation. Any fines imposed on a creditor for the failure to appoint an instate representative or agent shall commence on the day after the ten-day period set forth in N.J.S.A. 46:10B-51(a)(1) for providing notice to the Municipal Clerk that a summons and complaint in an action to foreclose on a mortgage has been served.