[Ord. No. 2466-16]
ABANDONED PROPERTY
Shall mean any property that is determined to be abandoned
pursuant to N.J.S.A. 55:19-78 et al.
PUBLIC OFFICER
Shall mean the Code Enforcement Official or such other person
designated or appointed by the Municipal Governing Body pursuant to
N.J.S.A. 40:48-2.5.
[Ord. No. 2466-16]
The Township of Millburn may direct the public officer to identify
abandoned property for the purpose of establishing an abandoned property
list throughout the Township, or within those parts of the Township
as the Governing Body may designate. Each item of abandoned property
so identified shall include the tax block and lot number, the name
of the owner of record, if known, and the street address of the lot.
a. The public officer shall establish and maintain a list of abandoned
property, to be known as the "abandoned property list." The Township
of Millburn may add properties to the abandoned property list at any
time and may delete properties at any time when the public officer
finds that the property no longer meets the definition of an abandoned
property. An interested party may request that a property be included
on the abandoned property list following that procedure set forth
at N.J.S.A. 55:19-105.
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 Township of Millburn has purchased or taken assignment from
the Township of a tax sale certificate which has been placed on the
abandoned property list may be removed in accordance with the provisions
of N.J.S.A. 55:19-103.
c. The public officer shall establish the abandoned property list or any additions thereto by publication in the official newspaper of the Township of Millburn, 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 Subsection
d of N.J.S.A. 54:4-64. 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 in N.J.S.A. 55:19-54, and the rules and regulations promulgated thereunder, specifying 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 County Clerk or Register of Deeds and Mortgages, as the case may be, of the County wherein the property is situated. This filing shall have the same force and effect as a notice of lis pendens under N.J.S.A. 2A:15-6. The notice shall be indexed by the name of the property owner as defendant and the name of the Township as plaintiff, as though an action had been commenced by the Township against the owner.
d. An owner or lienholder may challenge the inclusion of his property
on the abandoned property list determined pursuant to paragraph b
of this subsection 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 pursuant to
paragraph d of this subsection, 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 by
the property owner averring that the property is not abandoned and
stating the reasons for such averment, 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, and 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 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.
e. The property owner may challenge an adverse determination of an appeal
with the public officer pursuant to paragraph d of this subsection,
by instituting, in accordance with the New Jersey Court Rules, a summary
proceeding in the Superior Court, Law Division, sitting in the County
in which the property is located, which action shall be tried de novo.
Such action shall be instituted within 20 days of the date of the
notice of decision mailed by the public officer pursuant to paragraph
e of this section. The sole ground for appeal shall be that the property
in question is not 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 public officer shall promptly remove any property from the abandoned
property list that has been determined not to be abandoned on appeal.
g. The abandoned property list shall become effective, and the Township
of Millburn shall have the right to pursue any legal remedy with respect
to properties on the abandoned property list at such time as any one
property has been placed on the list in accordance with the provisions
of this section, upon the expiration of the period for appeal with
respect to that property or upon the denial of an appeal brought by
the property owner.
h. Registration of Property.
1. The owner of a property on the abandoned property list shall, within
30 days of the property being so listed, or within 30 days of acquiring
ownership of such a property, file a registration statement for said
property with the Township of Millburn on forms provided by the Township
of Millburn for the purpose. The owner shall review the registration
annually, no later than January 31, as long as the property remains
on the abandoned property list and shall pay a registration or renewal
fee in the amount prescribed in paragraph h3 of this subsection. A
fee required to be paid during the course of a particular year shall
be prorated for the duration from the time of filing and December
31 of that year. The owner of a property on the abandoned property
list shall notify the Township of Millburn within 30 days of any change
in the registration information by filing an amended registration
statement on the form provided by the Township of Millburn for the
purpose. The registration statement shall be deemed to be prima facie
proof of the information contained therein in any administrative enforcement
proceeding or judicial proceeding instituted by the Township of Millburn
against the owner of said property.
2. After filing a registration statement or a renewal of a registration
statement, the owner of such property shall provide interior and exterior
access to the Township of Millburn Construction Official and/or the
Public Officer, if requested, following reasonable notice, during
the period covered by the initial registration or any subsequent renewal.
The registration statement shall include relevant information including
the name, street address and telephone number of a natural person
21 years of age or older, designated by the owner or owners as the
authorized agent for receiving notices of ordinance violations and
for receiving process in any court proceeding or administrative enforcement
proceeding, on behalf of such owner or owners in connection with the
enforcement of any applicable code. The designated agent must have
a contact number that will be available 24 hours per day on an emergency
basis. The statement shall also include the name of the person responsible
for maintaining and securing the property, if different from the designated
agent. An owner who is a natural person and who meets the requirements
of this subsection as to availability of a contact number on a twenty-four
hour emergency basis may designate himself or herself as agent. By
designating an authorized agent under the provisions of this subsection,
the owner consents to receive any and all notices of code violations
concerning the registered property and all process in any court proceeding
or administrative enforcement proceeding brought to enforce ordinance
provisions concerning the registered property by service of the notice
or process on the authorized agent. Any owner who has designated an
authorized agent under the provisions of this subsection shall be
deemed to consent to the continuation of the agent's designation
for the purpose of this subsection until the owner notifies the Township
of Millburn of a change of the authorized agent or until the owner
files a new annual registration statement. The designation of an authorized
agent does not release the owner from any requirement of this section.
3. The initial registration fee for each building shall be $500. The
fee for the first renewal is $1,500. The fee for the second renewal
is $3,000. For any subsequent renewal, the registration fee shall
be $5,000. The initial fee shall be prorated according to paragraph
h1.
[Ord. No. 2466-16]
a. Notwithstanding 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 Township liens due on the property
are delinquent six (6) or more quarters as of the date of expiration
of the right to appeal 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 in 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, as appropriate.
The Township of Millburn 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 Township 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 Section 36 of
P.L. 1996, c. 62 (N.J.S.A. 55:19-55) and to post a bond in favor of
the Township to guarantee the rehabilitation or repair of the property.
The public officer may waive a requirement to post a bond imposed
by the Township of Millburn for any purchaser, assignee or transferee
of a tax sale certificate that provides documentation acceptable to
the public officer that the purchaser, assignee or transferee is a
qualified rehabilitation entity as defined in Section 3 of P.L. 2003,
c. 210 (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 pursuant to N.J.S.A.
54:4-67 of the Township of Millburn in effect for the time period
when the amounts were expended. The tax sale certificate purchaser,
assignee or transferee, under the auspices and with the authority
of the Township of Millburn, 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 Township
of Millburn harmless is filed with the public officer. If the tax
sale certificate is not purchased at the initial auction of the tax
sale certificate and the Township of Millburn purchases the certificate
pursuant to N.J.S.A. 54:5-34, then the Township of Millburn shall
retain all of its right, title and interest in that certificate, however,
any portion of the amount paid to the Tax Collector to redeem the
tax sale certificate that represents tax or other Township lien delinquencies
and subsequent Township liens, including interest, shall be returned
by the Tax Collector of the Township of Millburn.
b. Remediation.
1. If the Township 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 lis pendens notice under Subsection d of Section 36 of P.L.
1996, c. 62 (N.J.S.A. 55:19-55), that entity 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 Township of Millburn, 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 Township
of Millburn, in order to ensure performance. The amount and conditions
of the bond shall be determined by the public officer.
2. The cost of remediation incurred by the Township of Millburn pursuant
to this subsection, 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 Township
of Millburn, except for Township taxes, liens and assessments and
any lien imposed pursuant to the "Spill Compensation and Control Act,"
P.L. 1976, c. 141 (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 County Clerk or
Register of Deeds and Mortgages, as appropriate, in the County in
which the property is located.
c. Failure to Remediate.
1. Failure of an owner or lienholder to remove a property from the abandoned
property list within the period of time for appeal of inclusion of
the property on the list pursuant to Subsection e of Section 36 of
P.L. 1996, c. 62 (N.J.S.A. 55:19-55), shall be prima facie evidence
of the intent of the owner to continue to maintain the property as
abandoned property.
2. The clearance, development, redevelopment, or repair of property
being maintained as an abandoned property pursuant to paragraph c1
of this subsection shall be a public purpose and public use for which
the power of eminent domain may be exercised.
[Ord. No. 2466-16]
a. An owner may remove a property from the list of abandoned properties
prior to sale of the tax sale certificate by paying all taxes and
Township 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 Section 36 of P.L. 1996, c. 62 (N.J.S.A. 55:19-55) and
posting cash or a bond to cover the cost of any environmental cleanup
required on the property, evidenced by a certification by a licensed
engineer retained by the owner and reviewed and approved by the public
officer stating that the cash or bond adequately covers the cost of
the cleanup; or
2. By demonstrating to the satisfaction of the public officer that the
conditions rendering the property abandoned have been remediated in
full; provided, however, that where the public officer finds that
the owner is actively engaged in remediating the conditions because
of which the property was determined to be abandoned pursuant to Section
36 of P.L. 1996, c. 62 (N.J.S.A. 55:19-55), as evidenced by significant
rehabilitation activity on the property, the public officer 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
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 Township, 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.
[Ord. No. 2466-16]
a. When a person other than the Township of Millburn or its subsidiaries
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 six (6)
months following the date of the sale of the tax sale certificate.
b. When the Township of Millburn is the purchaser at tax sale of any property on the abandoned property list pursuant to N.J.S.A. 54:5-34, or when the Township or any of its subsidiaries acquires the tax sale certificate pursuant to Subsection
a of Section 37 of P.L. 1996, c. 62 (N.J.S.A. 54:5-104.34), 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 Section 36 of P.L. 1996, c. 62 (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 pursuant to Section 36 of
P.L. 1996, c. 62 (N.J.S.A. 55:19-56) have been remedied in full.
[Ord. No. 2466-16]
Entry of final judgment barring right of redemption; grounds
for reopening judgment (from N.J.S.A. 55:19-59). Once a final judgment
barring the right of redemption with respect to a property on the
list of abandoned properties has been recorded, no court shall reopen
such judgment at any time except on the grounds of lack of jurisdiction
or fraud in the conduct of the action; in any such proceeding, the
provisions of P.L. 1996, c. 62 (N.J.S.A. 55:19-20 et al.) shall be
construed liberally in favor of the purchaser, assignee or transferee
of the tax sale certificate.
[Ord. No. 2466-16]
a. Abandoned properties create a wide range of problems for the Township
of Millburn, fostering criminal activity, creating public health problems
and otherwise diminishing the quality of life for residents and business
operators in those areas.
b. Abandoned properties diminish the property values of neighboring
properties and have a negative effect on the quality of life of adjacent
property owners, increasing the risk of property damage through arson
and vandalism and discouraging neighborhood stability and revitalization.
c. For these reasons, abandoned properties are presumptively considered
to be nuisances, in view of their negative effects on nearby properties
and the residents or users of those properties.
d. The continued presence of abandoned properties in the Township of
Millburn acts as a significant barrier to the Township's continue
progressive development and revitalization.
e. The responsibility of a property owner to maintain a property in
sound condition and prevent it from becoming a nuisance to others
extends to properties which are not in use and "demolition by neglect,"
leading to the deterioration and loss of the property, or failure
by an owner to comply with legitimate orders to demolish, stabilize
or otherwise repair his or her property creates a presumption that
the owner has abandoned the property.
[Ord. No. 2466-16]
As used in this section, the following terms shall have the
meanings indicated:
DEPARTMENT
Shall mean the New Jersey Department of Community Affairs.
LIENHOLDER OR MORTGAGE HOLDER
Shall mean any person or entity holding a note, mortgage
or other interest secured by the building or any part thereof.
OWNER
Shall mean the holder or holders of title to an abandoned
property.
PROPERTY
Shall mean any building or structure and the land appurtenant
thereto.
PUBLIC OFFICER
Shall mean the person designated by the Township of Millburn
pursuant to Section 3 of P.L. 1942, c. 112 (N.J.S.A. 40:48-2.5) or
any officer of the Township of Millburn qualified to carry out the
responsibilities set forth in P.L. 2003, c. 210 (N.J.S.A. 55:19-78
et al.) and designated by the Mayor and Council of Millburn Township.
QUALIFIED REHABILITATION ENTITY
Shall mean an entity organized or authorized to do business
under the New Jersey statutes, which shall have as one of its purposes
the construction or rehabilitation of residential or nonresidential
buildings, the provision of affordable housing, the restoration of
abandoned property, the revitalization and improvement of urban neighborhoods,
or similar purpose, and which shall be well qualified by virtue of
its staff, professional consultants, financial resources, and prior
activities set forth in P.L. 2003, c. 10 (N.J.S.A. 55:19-78 et al.)
to carry out the rehabilitation of vacant buildings in urban area.
[Ord. No. 2466-16]
a. Except as provided in Section 6 of P.L. 2003, c. 210 (N.J.S.A. 55:19-83),
any property that has not been legally occupied for a period of six
(6) 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:
1. 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;
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 (6) months as of
the date of a determination by the public officer pursuant to this
section;
3. 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 as of the date of a determination by the public officer pursuant to this section; or
4. The property has been determined to be a nuisance by the public officer
in accordance with Section 5 of P.L. 2003, c. 210 (N.J.S.A. 55:19-82).
b. 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 space
and none of the residential space has been legally occupied for at
least six (6) months at the time of the determination of abandonment
by the public officer and the property meets the criteria of either
paragraph a1 or a4 of this subsection.
[Ord. No. 2466-16]
a. A property may be determined to be a nuisance if:
1. The property has been found to be unfit for human habitation, occupancy
or use pursuant to Section 1 of P.L. 1942, c. 112 (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 Township of
Millburn 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 public officer who determines a property to be a nuisance pursuant
to paragraphs a2 through a5 of this subsection shall follow the notification
procedures set forth in P.L. 1942, c. 112 (N.J.S.A. 40:48-2.3 et seq.).
[Ord. No. 2466-16]
a. If an entity other than the Township of Millburn has purchased or taken assignment from the Township of a tax sale certificate on a property that has not been legally occupied for a period of six (6) months, that property shall not be placed on the abandoned property list pursuant to Section 36 of P.L. 1996, c. 62 (N.J.S.A. 55:19-55) if: 1) the owner of the certificate has continued to pay all Township of Millburn 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 (6) months after the property is eligible for foreclosure pursuant to either Subsection
a or Subsection
b of N.J.S.A. 54:5-86, as appropriate, and diligently pursues foreclosure proceedings in a timely fashion thereafter.
b. A property which is used on a seasonal basis shall be deemed to be
abandoned only if the property meets any two (2) of the additional
criteria set forth in Section 4 of P.L. 2003, c. 210 (N.J.S.A. 55:19-81).
c. A determination that a property is abandoned property under the provisions
of P.L. 2003, c. 210 (N.J.S.A. 55:19-78 et al.) 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 public officer or the Tax
Collector shall, in a timely fashion, provide the requester with a
certification that the property fulfills the definition of abandoned
according to the criteria set forth in Sections 4 and 5 of P.L. 2003,
c. 210 (N.J.S.A. 55:19-81 and N.J.S.A. 55:19-82).
[Ord. No. 2466-16]
a. A summary action or otherwise to transfer possession and control
of abandoned property in need of rehabilitation to the Township of
Millburn may be brought by the Township of Millburn in the Superior
Court in the County in which the property is situated. If the court
shall find that the property is abandoned pursuant to Section 4 of
P.L. 2003, c. 210 (N.J.S.A. 55:19-81) and the owner or party in interest
has failed to submit and initiate a rehabilitation plan, then the
court may authorize the Township of Millburn to take possession and
control of the property and develop a rehabilitation plan.
b. The Township of Millburn granted possession and control 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, necessary to 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 of the property
as provided in Section 15 of P.L. 2003, c. 210 (N.J.S.A. 55:19-92).
c. Failure by the owner, mortgage holder or lienholder to submit plans
for rehabilitation to the Township of Millburn, obtain appropriate
construction permits for rehabilitation or, in the alternative, submit
formal applications for funding the cost of rehabilitation to local,
State or Federal agencies providing such funding within that six-month
period shall be deemed prima facie evidence that the owner has failed
to take any action to further the rehabilitation of the property.
[Ord. No. 2466-16]
A complaint filed pursuant to Section 7 of P.L. 2003, c. 210
(N.J.S.A. 55:19-84) shall include:
a. Documentation that the property is on the municipal abandoned property
list or a certification by the public officer that the property is
abandoned; and
b. A statement by an individual holding appropriate professional qualifications
that there are sound reasons that the building should be rehabilitated
rather than demolished based upon the physical, aesthetic or historical
character of the building or the relationship of the building to other
buildings and lands within its immediate vicinity.
[Ord. No. 2466-16]
a. Within 10 days of filing a complaint pursuant to P.L. 2003, c. 210
(N.J.S.A. 55:19-78 et al.), the plaintiff shall file a notice of lis
pendens with the County Recording Officer of the County within which
the building is located.
b. At least 30 days before filing the complaint, the Township of Millburn
shall serve a notice of intention to take possession of an abandoned
building. The notice shall inform the owner and interested parties
that the property has not been legally occupied for six (6) months
and of those criteria that led to a determination of abandonment pursuant
to Section 4 of P.L. 2003, c. 210 (N.J.S.A. 55:19-81).
1. The notice shall provide that unless the owner or a party in interest
prepares and submits a rehabilitation plan to the appropriate Township
of Millburn officials, the Township of Millburn will seek to gain
possession of the building to rehabilitate the property and the associated
cost shall be a lien against the property, which may be satisfied
by the sale of the property, unless the owner applies to the court
for reinstatement of control of the property as provided in Section
15 of P.L. 2003, c. 210 (N.J.S.A. 55:19-92).
2. After the complaint is filed, the complaint shall be served on the
parties in interest in accordance with the New Jersey Rules of Court.
c. After serving the notice of intent pursuant to paragraph b of this
subsection, the Township of Millburn or its designee may enter upon
that property after written notice to the owner by certified mail,
return receipt requested, in order to secure, stabilize or repair
the property, or in order to inspect the property for purposes of
preparing the plan to be submitted to the court pursuant to Section
12 of P.L. 2003, c. 210 (N.J.S.A. 55:19-89).
[Ord. No. 2466-16]
a. Any owner may defend against a complaint filed pursuant to Section
7 of P.L. 2003, c. 210 (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 public officer or the court to be the projected
cost of rehabilitation. 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.
b. 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.
c. Court Approval.
1. The court shall approve any plan that, in the judgment of the court,
is realistic and likely to result in the expeditious rehabilitation
and reuse of the property which is the subject of the complaint.
2. If the court approves the owner's plan, then 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, then
the Township of Millburn may apply to the court to have the owner's
bond forfeited, possession of the building transferred to the Township
of Millburn to complete the rehabilitation plan and authorization
to use the bond proceeds for rehabilitation of the property.
3. The owner shall provide quarterly reports to the Township of Millburn
on its activities and progress toward rehabilitation and reuse of
the property. The owner shall provide those reports to the court on
its activities that the court determines are necessary.
d. The court may reject a plan and bond if it finds that the plan does
not represent a realistic and expeditious means of ensuring the rehabilitation
of the property or that the owner or his representatives or agents,
or both, lack the qualifications, background or other criteria necessary
to ensure that the plan will be carried out successfully.
[Ord. No. 2466-16]
a. If an owner is unsuccessful in defending against a complaint filed
pursuant to Section 7 of P.L. 2003, c. 210 (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 Section 10 of P.L. 2003, c. 210 (N.J.S.A.
55:19-87). The plan shall be submitted within 60 days after the court
has rejected 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's or lienholder's
plan, it shall designate that party to be in possession of the property
for purposes of ensuring its rehabilitation and reuse and may appoint
the public officer to act as monitor of the party's compliance.
1. The mortgage holder or lienholder, as the case may be, shall provide
quarterly reports to the court and the Township of Millburn on its
activities and progress toward rehabilitation and reuse of the property.
2. If the mortgage holder or lienholder fails to carry out any material
step in the approved plan, then the public officer shall notify the
court, which may order the bond forfeit, grant the Township of Millburn
possession of the property, and authorize the Township of Millburn
to use the proceeds of the bond for rehabilitation of the property.
b. Any sums incurred or advanced for the purpose of rehabilitating the
property by a mortgage holder or lienholder granted possession of
a property pursuant to paragraph a of this subsection, including court
costs and reasonable attorney's fees, may be added to the unpaid
balance due 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.
[Ord. No. 2466-16]
a. If no mortgage holder or lienholder meets the conditions of Section 11 of P.L. 2003, c. 210 (N.J.S.A. 55:19-88), then the Township of Millburn shall submit a plan to the court which conforms with the provisions of Subsection
b of Section 10 of P.L. 2003, c. 210 (N.J.S.A. 55:19-87). The plan shall designate the entity which shall implement the plan, which may be the Township of Millburn or that entity designated in accordance with the provisions of Section 13 of P.L. 2003, c. 210 (N.J.S.A. 55:19-90).
b. The court shall grant the Township of Millburn possession of the
property if it finds that:
1. The proposed rehabilitation and reuse of the property is appropriate
and beneficial;
2. The Township of Millburn is qualified to undertake the rehabilitation
and reuse of the property; and
3. The plan submitted by the Township of Millburn represents a realistic
and timely plan for the rehabilitation and reuse of the property.
c. The Township of Millburn shall take all steps necessary and appropriate
to further the rehabilitation and reuse of the property consistent
with the plan submitted to the court. In making its findings pursuant
to this section, the court may consult with qualified parties, including
the Department of Community Affairs, and, upon request by a party
in interest, may hold a hearing on the plan.
d. Where either a redevelopment plan pursuant to P.L. 1992, c. 79 (N.J.S.A.
40A:12A-1 et seq.) or a neighborhood revitalization plan pursuant
to P.L. 2001, c. 415 (N.J.S.A. 52:27D-490 et seq.) has been adopted
or approved by the Department of Community Affairs, as appropriate,
encompassing the property which is the subject of a complaint, the
court shall make a further finding that the proposed rehabilitation
and reuse of the property are not inconsistent with any provision
of either plan.
[Ord. No. 2466-16]
a. The Township of Millburn may exercise its rights under P.L. 2003,
c. 210 (N.J.S.A. 55:19-78 et al.) directly, or may designate a qualified
rehabilitation entity to act as its designee for the purpose of exercising
the Township's rights where that designation will further the
rehabilitation and reuse of the property consistent with Township's
plans and objectives. This designation shall be made by resolution
of the Mayor and the Council of the Township of Millburn The Governing
Body or Mayor, as the case may be, may delegate this authority to
the public officer.
b. Regardless of whether the Township of Millburn exercises its rights
directly or designates a qualified rehabilitation entity pursuant
to this section, while in possession of a property pursuant to P.L.
2003, c. 210 (N.J.S.A. 55:19-78 et al.), the Township of Millburn
shall maintain, safeguard, and maintain insurance on the property.
Notwithstanding the Township's possession of the property, nothing
in P.L. 2003, c. 210 (N.J.S.A. 55:19-78 et al.) shall be deemed to
relieve the owner of the property of any civil or criminal liability
or any duty imposed by reason of acts or omissions of the owner.
[Ord. No. 2466-16]
a. If the Township of Millburn has been granted possession of a property
pursuant to Section 12 of P.L. 2003, c. 210 (N.J.S.A. 55:19-89), that
Township shall be deemed to have an ownership interest in the property
for the purpose of filing plans with public agencies and boards, seeking
and obtaining construction permits and other approvals, and submitting
applications for financing or other assistance to public or private
entities.
1. For the purposes of any State program of grants or loans, including
but not limited to programs of the Department of Community Affairs
and the New Jersey Housing and Mortgage Finance Agency, possession
of a property under this section shall be considered legal control
of the property.
2. Notwithstanding the granting of possession to the Township of Millburn,
nothing in P.L. 2003, c. 210 (N.J.S.A. 55:19-78 et al.) shall be deemed
to relieve the owner of the property of any obligation the owner or
any other person may have for the payment of taxes or other Township
of Millburn liens and charges, or mortgages or liens to any party,
whether those taxes, charges or liens are incurred before or after
the granting of possession.
3. The granting of possession shall not suspend any obligation the owner
may have as of the date of the granting of possession for payment
of any operating or maintenance expense associated with the property,
whether or not billed at the time of the granting of possession.
b. The court may approve the borrowing of funds by the Township of Millburn
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 shall find
that: 1) the Township of Millburn sought to obtain the necessary financing
from the senior lienholder, which declined to provide such financing
on reasonable terms; 2) the Township of Millburn 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
in the office of the Clerk of the County in which the property is
located. For the purposes of this section, the cost of rehabilitation
shall include reasonable no construction costs such as architectural
fees or construction permit fees customarily included in the financing
of the rehabilitation of residential property.
c. Where the Township of Millburn has been granted possession by the
court in the name of the Township, the Township of Millburn may seek
the approval of the court to assign its rights to another entity,
which approval shall be granted by the court when it finds that: 1)
the entity to which the Township's rights will be assigned is
a qualified rehabilitation entity; and 2) the assignment will further
the purposes of this section.
d. Where the Township of Millburn has designated a qualified rehabilitation
entity to act on its behalf, the qualified rehabilitation entity shall
provide quarterly reports to the Township of Millburn on its activities
and progress toward rehabilitation and reuse of the property. The
Township of Millburn 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 Township of Millburn
or its designee have failed to take diligent action toward rehabilitation
of the property within one year from the grant of possession, then
the court may request the Township of Millburn to designate another
qualified rehabilitation entity to exercise its rights, or if the
Township of Millburn fails to do so, may terminate the order of possession
and return the property to its owner.
e. The Township of Millburn 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 Township of Millburn has determined
that no more than six (6) months remain to the anticipated date on
which rehabilitation will be complete. This notice shall include an
affidavit of the public officer attesting that rehabilitation can
realistically be anticipated to be complete within that time period
and a statement setting forth such actions as it plans to undertake
to ensure that reuse of the property takes place consistent with the
plan.
[Ord. No. 2466-16]
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
grant of possession, but no later than 30 days after the Township
of Millburn 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 Township of Millburn
has filed 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 Township of Millburn, or affect any of the terms
or conditions under which the Township of Millburn has applied for
or received financing for the rehabilitation of the property.
[Ord. No. 2466-16]
Any petition for reinstatement of the owner's control and
possession of the property filed pursuant to Section 15 of P.L. 2003,
c. 210 (N.J.S.A. 55:19-92) shall:
a. Include a plan for completion of the rehabilitation and reuse of
the property consistent with the plan previously approved by the court;
b. Provide legally binding assurances that the owner will comply with
all conditions of any grant or loan secured by the Township of Millburn
or repay those grants or loans in full, at the discretion of the maker
of the loan or grant; and
c. Be accompanied by payment equal to the sum of:
1. All Township liens outstanding on the property;
2. All costs incurred by the Township of Millburn in bringing action
with respect to the property;
3. Any costs incurred by the Township of Millburn not covered by grants
or loans to be assumed or repaid pursuant to this section; and
4. Any costs remaining to complete rehabilitation and reuse of the property,
as determined by the public officer, which payment shall be placed
in escrow with the Clerk of the Court pending disposition of the petition.
[Ord. No. 2466-16]
a. Prior to the granting of a petition on the part of the owner by the
court pursuant to Section 15 of P.L. 2003, c. 210 (N.J.S.A. 55:19-92),
the owner may be required to post a bond or other security in an amount
determined by the court, after consultation with the public officer,
as likely to ensure that the owner will continue to maintain the property
in sound condition. That bond or other security shall be made available
to the Township of Millburn to make any repair on the property in
the event of a code violation which is not corrected in timely fashion
by the owner. The bond or other security may be forfeit in full in
the event that the owner fails to comply with any requirement imposed
as a condition of the reinstatement petition filed pursuant to Section
15 of P.L. 2003, c. 210 (N.J.S.A. 55:19-92).
b. The owner may seek approval of the court to be relieved of this requirement
after five (5) years, which shall be granted if the court finds that
the owner has maintained the property in good repair during that period,
that no material violations affecting the health and safety of the
tenants have occurred during that period, and that the owner has remedied
other violations in a timely and expeditious fashion.
[Ord. No. 2466-16]
If the owner fails to petition for the reinstatement of control
and possession of the property within 30 days after the entity in
possession has filed a notice of completion or in any event within
two (2) 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 filed pursuant to Section 15 of P.L. 2003,
c. 210 (N.J.S.A. 55:19-92), upon petition from the entity in possession,
the court may grant the Township of Millburn title or authorize the
Township of Millburn to sell the property, subject to the provisions
of Section 19 of P.L. 2003, c. 210 (N.J.S.A. 55:19-96).
[Ord. No. 2466-16]
a. Where the Township of Millburn 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.
1. The court may authorize the Township of Millburn 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.
2. The proceeds of the purchase of the property shall be distributed
as set forth in Section 20 of P.L. 2003, c. 210 (N.J.S.A. 55:19-97).
b. The Township of Millburn may seek approval of the court to sell the
property to a third party when the court finds that such conveyance
will further the effective and timely rehabilitation and reuse of
the property.
c. Upon approval by the court, the Township of Millburn 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 Section 20 of P.L. 2003,
c. 210 (N.J.S.A. 55:19-97).
[Ord. No. 2466-16]
The proceeds paid pursuant to Subsection c of Section 19 of
P.L. 2003, c. 210 (N.J.S.A. 55:19-96) shall be distributed in the
following order of priority:
a. The costs and expenses of sale;
b. Other governmental liens;
c. Repayment of principal and interest on any borrowing or indebtedness incurred by the Township of Millburn and granted priority lien status pursuant to Subsection
a of Section 21 of P.L. 2003, c. 210 (N.J.S.A. 55:19-98);
d. A reasonable development fee to the Township of Millburn consistent
with the standards for development fees established for rehabilitation
programs by the New Jersey Department of Community Affairs or the
New Jersey Housing and Mortgage Finance Agency;
e. Other valid liens and security interests, in accordance with their
priority; and
[Ord. No. 2466-16]
a. The public officer, with the approval of the court, may place a lien
on the property to cover any costs of the Township of Millburn in
connection with a proceeding under P.L. 2003, c. 210 (N.J.S.A. 55:19-78
et al.) incurred prior to the grant by the court of an order of possession
under P.L. 2003, c. 210 (N.J.S.A. 55:19-78 et al.), 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 Township lien for the purposes of N.J.S.A. 54:5-9
with the rights and status of a Township lien pursuant thereto.
b. With the exception of the holding of special tax sales pursuant to
Section 24 of P.L. 2003, c. 210 (N.J.S.A. 55:19-101), the remedies
available under P.L. 2003, c. 210 (N.J.S.A. 55:19-78 et al.) shall
be available to the Township of Millburn with respect to any abandoned
property, whether or not the Township of Millburn has established
an abandoned property list as provided in Section 36 of P.L. 1996,
c. 62 (N.J.S.A. 55:19-55) and whether or not the property has been
included on any such list.
[Ord. No. 2466-16]
Notwithstanding any provision to the contrary in P.L. 2003,
c. 210 (N.J.S.A. 55:19-78 et al.), a court may in its discretion deny
a lienholder or mortgage holder any or all rights or remedies afforded
lienholders and mortgage holders under P.L. 2003, c. 210 (N.J.S.A.
55:19-78 et al.), if the court finds that the owner of a property
subject to any of the provisions of P.L. 2003, c. 210 (N.J.S.A. 55:19-78
et al.) owns or controls more than a 50 percent interest in, or effective
control of, the lienholder or mortgage holder or that the familial
or business relationship between the lienholder or mortgage holder
and the owner precludes a separate interest on the part of the lienholder
or mortgage holder.
[Ord. No. 2466-16]
With respect to any lien placed against any real property pursuant
to the provisions of Section 1 or Section 3 of P.L. 1942, c. 112 (N.J.S.A.
40:48-2.3 or N.J.S.A. 40:48-2.5) or Section 1 of P.L. 1989, c. 91
(N.J.S.A. 40:48-2.3a) or any receiver's lien pursuant to P.L.
2003, c. 295 (N.J.S.A. 2A:42-114 et al.), the Township of Millburn
shall have recourse with respect to the lien against any asset of
the owner of the property, if an individual; against any asset of
any partner, if a partnership; and against any asset of any owner
of a ten-percent interest or greater, if the owner is any other business
organization or entity recognized pursuant to law.
[Ord. No. 2466-16]
The Township of Millburn 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 an abandoned property list established by the Township
of Millburn pursuant to Section 36 of P.L. 1996, c. 62 (N.J.S.A. 55:19-55).
If the Township of Millburn elects to hold a special tax sale, it
shall conduct that sale subject to the following provisions:
a. The Township of Millburn shall establish criteria for eligibility
to bid on properties at the sale, which may include, but shall not
be limited to: documentation of the bidder's ability to rehabilitate
or otherwise reuse the property consistent with Township plans and
regulations; commitments by the bidder to rehabilitate or otherwise
reuse the property consistent with Township plans and regulations;
commitments by the bidder to take action to foreclose on the tax lien
by a date certain; and such other criteria as the Township of Millburn
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;
b. The Township of Millburn may establish minimum bid requirements for
a special tax sale that may be less than the full amount of the taxes,
interest and penalties due, the amount of such minimum bid to be at
the sole discretion of the Township of Millburn, in order to ensure
that the properties to be sold will be rehabilitated or otherwise
reused in a manner consistent with the public interest;
c. The Township of Millburn may combine properties into bid packages,
and require that bidders place a single bid on each package, and reject
any and all bids on individual properties that have been included
in bid packages;
d. The Township of Millburn may sell properties subject to provisions
that, if the purchaser fails to carry out any commitment that has
been set forth as a condition of sale pursuant to paragraph a of this
subsection 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 Township of Millburn, and any amount paid by the
purchaser to the Township of Millburn at the special tax sale shall
be forfeit to the City;
e. In the event there are two (2) or more qualified bidders for any
property or bid package in a special tax sale, the Township of Millburn
may designate the unsuccessful but qualified bidder whose bid was
closest to the successful bid as an eligible purchaser;
f. In the event that the purchaser of that property or bid package fails
to meet any of the conditions of sale established by the Township
of Millburn pursuant to this section, and their interest in the property
or properties reverts to the Township of Millburn, the Township of
Millburn 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 Township of Millburn 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 Township of Millburn pursuant to
paragraphs b, c or d of this subsection. Nothing shall prohibit the
Township of Millburn from holding a special tax sale on the same day
as a standard or accelerated tax sale.
[Ord. No. 2466-16]
With respect to any eminent domain proceeding carried out under
Section 37 of P.L. 1996, c. 62 (N.J.S.A. 55:19-56), the fair market
value of the property shall be established on the basis of an analysis
which determines independently:
a. The cost to rehabilitate and reuse the property for such purpose
as is appropriate under existing planning and zoning regulations governing
its reuse or to demolish the existing property and construct a new
building on the site, including all costs ancillary to rehabilitation
such as, but not limited to, marketing and legal costs;
b. The realistic market value of the reused property after rehabilitation
or new construction, taking into account the market conditions particular
to the neighborhood or subarea of the Township of Millburn in which
the property is located; and
c. The extent to which the cost exceeds or does not exceed the market
value after rehabilitation, or demolition and new construction, and
the extent to which any "as is" value of the property prior to rehabilitation
can be added to the cost of rehabilitation or demolition and new construction
without the resulting combined cost exceeding the market value as
separately determined. If the appraisal finds that the cost of rehabilitation
or demolition and new construction, as appropriate, exceeds the realistic
market value after rehabilitation or demolition and new construction,
there shall be a rebuttable presumption in all proceedings under this
subsection that the fair market value of the abandoned property is
zero, and that no compensation is due the owner.
[Ord. No. 2466-16]
If a property, which an entity other than the Township of Millburn
has purchased or taken assignment from the Township of Millburn of
a tax sale certificate, is placed on the abandoned property list,
the property shall be removed from the list if the owner of the certificate
pays all Township 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 (6) months after the property was first placed on the list,
the property shall be restored to the abandoned property list.
[Ord. No. 2466-16]
a. Any interested party may submit in writing a request to the public
officer that a property be included on the abandoned property list
prepared pursuant to Section 36 of P.L. 1996, c. 62 (N.J.S.A. 55:19-55),
specifying 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 of abandoned properties or, if not, the reasons
for not adding the property to the list. For the purposes of this
subsection, "interested party" shall include any resident of the Township
of Millburn, any owner or operator of a business within the Township
of Millburn, or any organization representing the interests of residents
or engaged in furthering the revitalization and improvement of the
neighborhood in which the property is located.
b. Any interested party may participate in any redetermination hearing
held by the public officer pursuant to Subsection e of Section 36
of P.L. 1996, c. 62 (N.J.S.A. 55:19-55). Upon written request by any
interested party, the public officer shall provide the 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 is proposes to submit at the hearing.