[Added 5-5-2020 by Ord. No. 9-2020[1]]
[1]
Editor's Note: This ordinance also repealed former Art. IV,
Properties in Foreclosure
As used in this article, the following terms shall have the
meanings indicated:
Any property that is determined to be abandoned pursuant
to P.L. 2003, N.J.S.A. 55:19-81;
The Board of Commissioners of the City of Millville;
Any building, or structure, or part thereof, whether used
for human habitation or otherwise, and includes any outbuildings,
and appurtenances belonging thereto;
The City of Millville, Cumberland County, State of New Jersey;
Any City official or employee authorized to issue and enforce
orders pursuant to any statute, code, ordinance or regulation.
Includes any resident of the City of Millville, any owner
or operator of a business within the City of Millville, or any organization
representing the interests of residents, business owners or otherwise
engaged in furthering the revitalization and improvement of the neighborhood
in which the property is located;
Any person or entity holding a note, mortgage, or other interest
secured by a building or any part thereof;
Any building or other enclosure which has remained unoccupied
for a period of six months or more and which, in the official opinion
of the applicable code official, is inadequately secured to prevent
entry and/or intrusion of the elements into any portion thereof.
Any window, door or other point or means of access to the
interior of a structure.
The holder or holders of title in fee simple;
Any building or other enclosure where the boards are uncut
to fit the openings, unpainted (or covered with exterior weathertight
material) and do not comply with established and industry-approved
design standards, which has remained unoccupied for a period of six
months or more and which is, in whole or in part, boarded up for a
period of six months or more and which, in the official opinion of
the applicable code official, is a public nuisance and an unfit building
inimical to the welfare of the citizens of the City of Millville as
it diminishes neighboring property values, constitutes an attractive
nuisance, is a forum for crime, a breeding ground for vermin, or is
in any other respect dangerous or injurious to the health and safety
of the people of the City of Millville. Such a building shall be deemed,
for all purposes of the Code of the City of Millville, a vacant building
subject to abatement or demolition.
Any building or structure and the land appurtenant thereto;
A person designated or appointed by the Board of Commissioners
pursuant to P.L. 1942, N.J.S.A. 40:48-2.5 or any officer of the municipality
qualified to carry out the responsibilities set forth in N.J.S.A.
55:19-78 et seq., as designated by resolution of the Board of Commissioners;
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
to carry out the rehabilitation of vacant buildings, as set forth
under N.J.S.A. 55:19-80.
Any structure in which all openings have been boarded and
locked in accordance with the terms of this chapter so as to prevent
unauthorized access by persons or intrusion by the elements.
Any building or other enclosure which has remained unoccupied
for a period of six months or more and which lacks the habitual presence
of human beings who have a legal right to be on the premises, whether
or not boarded up, and which, in the official opinion of the applicable
code official, is a public nuisance and an unfit building inimical
to the welfare of the citizens of Millville as it diminishes neighboring
property values, constitutes an attractive nuisance, is a forum for
crime, a breeding ground for vermin or is in any other respect dangerous
or injurious to the health and safety of the people of the City of
Millville.
A.
A code official shall have the authority to direct that an owner
of any open vacant structure secure all openings in such structure
in the manner and according to the standards set forth in this chapter.
B.
Nothing in this chapter shall be construed to limit or infringe upon
the exercise by a code official of any other lawful power or authority
of such official.
A.
Notice to secure. Upon a determination by a code official that a
structure is an open vacant structure, that official shall serve notice
upon the owner of such structure ordering said owner to secure the
structure. The form of notice, manner of service and right to appeal
shall be as set forth in the particular code under which such code
official is authorized to proceed.
B.
Completion of work. In the event that an owner fails to complete
all work required to secure a structure within 15 days after the end
of the applicable period for the owner to appeal the code official's
determination, then the City shall have the authority to secure the
subject structure itself or by agreement with a third party. The costs
incurred by the City in so proceeding, including reasonable administrative
charges, shall be assessed against and be a lien upon the subject
property.
[Amended 2-20-2024 by Ord. No. 8-2024]
C.
Permits and inspections. No work shall be undertaken pursuant to
this article unless the proper construction permits shall first have
been obtained from the Bureau of Permits and Inspections. Such work
shall be subject to all inspections and other requirements as set
forth in the Uniform Construction Code or any other relevant law,
ordinance or regulation.
A.
Standards applicable to all structures. All openings shall be secured
utilizing one of the following methods:
(1)
Seal all openings with brick or block and mortar.
(2)
Cover all openings with five-eighths-inch, exterior-grade sheathing
plywood. Such plywood shall either be cut to fit the exact size of
the opening or shall rest on window or door ledge and shall overlap
the window frame for at least two inches on each side and the top.
When no ledge exists, the plywood shall overlap on the bottom for
at least two inches. One two-by-four shall be placed on the exterior
cut to the width of the plywood, and one two-by-four shall be placed
on the interior cut to a length that shall cause it to overlap for
a length of eight inches beyond the window frame on either side. The
two-by-fours shall be held in place by inserting at least one five-eighths-inch
steel carriage bolt or two three-eighths-inch carriage bolts through
the two-by-fours and the plywood. The bolt(s) shall be inserted from
the exterior, and the securing nut shall be located on the interior.
When the height of the plywood covering the opening exceeds 20 inches,
at least two two-by-fours shall be located on both the exterior and
the interior. All lumber used to secure structures shall be painted
at the exterior with exterior paint or stain which, as closely as
practicable, matches the predominant characteristics of the structure,
as approved by the Construction Official pursuant to an application
for construction permit submitted by or on behalf of the owner of
a subject structure.
B.
Access openings. One opening in any structure may be utilized to
access the structure for repairs, inspection or other necessary purposes.
Such opening shall be secured in the same fashion as other openings,
as set forth herein, except that an access opening may be constructed
with hinge-operated hardware or an acceptable substitute as determined
by the Construction Official. All such operable openings shall be
equipped with an approved locking device and shall face and be readily
visible from the adjoining street or roadway.
An owner is required to complete all work pursuant to this article.
Where the owner fails to comply with the requirements of this chapter,
the Public Officer or his designee shall certify the cost thereof
to the Board of Commissioners, which shall examine the certificate,
and if it shall be found correct, the Board of Commissioners shall
cause the cost as shown thereon, with an additional administrative
fee of $100, to be charged against the lands from which the work required
to the abandoned building shall have been completed; and the amount
so charged shall forthwith become a lien upon the lands and shall
be added to and become and form part of the taxes next to be assessed
and levied upon such lands, the same to bear interest at the same
rate as taxes, and shall be collected and enforced by the same officers
and in the same manner as taxes.
A.
Except as provided under N.J.S.A. 55:19-83, any property that has
not been legally occupied for a period of six months and which meets
any one of the following additional criteria may be deemed to be abandoned
property upon a determination by the Public Officer, that:
(1)
The property is in need of rehabilitation in the reasonable judgment
of the Public Officer, and no rehabilitation has taken place during
that same six-month period; or
(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 months as of the
date of a determination by the Public Officer;
(3)
At least one installment of property tax remains unpaid and delinquent
on that property as of the date of a determination by the Public Officer;
or
(4)
The property has been determined to be a nuisance by the Public Officer,
in accordance with N.J.S.A. 55:19-82 for one or more of the following
reasons:
(a)
The property has been found to be unfit for human habitation,
occupancy or use pursuant to N.J.S.A. 40:48-2.3;
(b)
The condition and vacancy of the property materially increases
the risk of fire to the property and adjacent properties;
(c)
The property is subject to unauthorized entry leading to potential
health and safety hazards; the owner has failed to take reasonable
and necessary measures to secure the property; or the municipality
has secured the property in order to prevent such hazards after the
owner has failed to do so;
(d)
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
(e)
The dilapidated appearance or other condition of the property
materially affects the welfare, including the economic welfare, of
the residents of the area in close proximity to the property, and
the owner has failed to take reasonable and necessary measures to
remedy the conditions.
B.
A property which contains both residential and nonresidential space
may be considered abandoned pursuant to N.J.S.A. 55:19-78 et seq.,
so long as 2/3 or more of the total net square footage of the building
was previously legally occupied as residential space and none of the
residential space has been legally occupied for at least six months
at the time of the determination of abandonment by the Public Officer.
A.
The Board of Commissioners may direct the Public Officer to identify
abandoned property for the purpose of establishing an abandoned property
list throughout the City, or within those parts of the City as the
Board of Commissioners may designate. Each item of identified abandoned
property shall include the tax block and lot number, the name of the
owner of record, if known, and the street address of the property
lot.
B.
The Public Officer shall establish and maintain a list of abandoned
property, known as the "abandoned property list." The Board of Commissioners
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.
C.
Notice.
(1)
The Public Officer shall establish the abandoned property list or
any additions/deletions thereto in the official newspaper designated
by the City of Millville. Within 10 days after publication in said
newspaper, the Public Officer 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 abandoned property list. The published
and mailed notices shall identify property determined to be abandoned
setting forth the owner of record and, if known, the tax lot and block
number and street address. The Public Officer, in consultation with
the Tax Collector, shall also send out a notice by regular mail to
any mortgagee, servicing organization, or property tax processing
organization that receives a duplicate copy of the tax bill pursuant
to N.J.S.A. 54:4-64(d).
(2)
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 finding of
the Public Officer, that the property is abandoned property as that
term is defined herein and in N.J.S.A. 55:19-54, and shall specify
the information relied upon in making such finding. In all cases,
a copy of the mailed or posted notice shall also be filed by the Public
Officer, in the Office of the Clerk, County of Cumberland. This filing
shall have the same force and effect as a formal notice under N.J.S.A.
2A:15-6. The notice shall be captioned with the name of the City of
Millville as "plaintiff" and the name of the property owner as "defendant,"
as though an action had been commenced by the City against the owner.
D.
An owner or lienholder may challenge the inclusion of his property
on the abandoned property list by appealing that determination to
the Board of Commissioners 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 Board of
Commissioners shall accept a late filing of an appeal. Within 30 days
of receipt of a request for an appeal of the findings contained in
the notice, the Board of Commissioners shall schedule a hearing for
redetermination of the matter. Any property included on the list shall
be presumed to be abandoned property unless the owner, through the
submission of an affidavit or certification asserting that the property
is not an abandoned property, can demonstrate that the property was
erroneously included on the list. The affidavit or certification shall
be accompanied by supporting documentation, such as, but not limited
to, photographs, repair invoices, bills and construction contracts.
The sole ground for appeal shall be that the property in question
is not abandoned property as that term is defined herein and in N.J.S.A.
55:19-54. The Board of Commissioners 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 Board of Commissioners, by instituting, in accordance with
the New Jersey Court Rules, a summary trial proceeding in the Superior
Court, County of Cumberland. Such action shall be instituted within
20 days of the date of the notice of decision mailed by the Board
of Commissioners. The sole ground for appeal and new hearing before
the Superior Court shall be that the property in question is not an
abandoned property as that term is defined in N.J.S.A. 55:19-54. The
failure to institute an action of appeal on a timely basis shall constitute
a jurisdictional bar to challenging the adverse determination, except
that, for good cause shown, the court may extend the deadline for
instituting the action.
F.
The City shall promptly remove any property from the abandoned property
list that has been determined by the Board of Commissioners or on
appeal not to be abandoned and may, in its discretion, remove properties
from said list whenever the Board of Commissioners deem such removal
appropriate under the circumstances.
G.
The abandoned property list shall become effective, and the City
shall have the right to pursue any legal remedy with respect to properties
on the list, at any time after at least one property has been placed
on the list and following the expiration of the period for appeal
with respect to that first property or upon the denial of an appeal
brought by the property owner of that first property.
A.
Any interested party may submit a written request to the Board of
Commissioners asserting that any property within the City of Millville
should be included on the abandoned property list. The written request
must specify the street address and block and lot number of the property
to be included and the grounds for its inclusion. Within 30 days of
receipt of any such request, the Board of Commissioners shall provide
a written response to the party, either indicating that the property
will be added to the abandoned property list or otherwise stating
the Board of Commissioners' reasons for not adding the property. For
the purposes of this section, the term "interested parties" shall
include any resident of the City of Millville, any owner or operator
of a business within the City of Millville, or any organization representing
the interests of residents, business owners or otherwise engaged in
furthering the revitalization and improvement of the neighborhood
in which the property is located.
B.
Any interested party may participate in a redetermination hearing
regarding the inclusion of a property on the abandoned property list.
Upon written request by any interested party, the Board of Commissioners
shall provide that party with at least 20 days' notice of any such
hearing. The party shall provide the Board of Commissioners with notice
at least 10 days before the hearing of its intention to participate
and the nature of the testimony or other information that it proposes
to submit at the hearing.
A.
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 City liens due on the property
are delinquent six 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.
(1)
The City may, at its option, require that the sale of the tax sale
certificate or any subsequent assignment or transfer of a tax sale
certificate held by the City be subject to the express condition that
the purchaser or assignee shall be obliged to perform and conclude
any rehabilitation or repairs necessary to remove the property from
the abandoned property list pursuant to N.J.S.A. 55:19-55. The City
may further require that the purchaser or assignee post a bond in
favor of the City to guarantee the rehabilitation or repair of the
property. 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.
(2)
The Public Officer may waive a requirement to post a bond imposed
by the City for any purchaser, assignee or transferee of a tax sale
certificate that provides documentation acceptable to the Public Officer
that the purchaser, assignee or transferee is a qualified rehabilitation
entity as defined herein.
(3)
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, in effect for the time period when the amounts were expended.
(4)
The tax sale certificate purchaser, assignee or transferee, under
the auspices and with the authority of the City, shall be permitted
to enter in and upon the property for the purposes of appraising the
costs of rehabilitation and repair and to perform all other acts required
to guarantee the completion of the rehabilitation or repair of the
property. No rehabilitation or repair work shall be commenced, however,
until proof of adequate liability insurance and an indemnification
agreement holding the City 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 City purchases the certificate
pursuant to N.J.S.A. 54:5-34, then the City is authorized and empowered
to convey and transfer to the authority or any of its subsidiaries,
without receiving compensation therefor, 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 City lien delinquencies and subsequent City liens, including
interest, shall be returned by the Tax Collector of the City.
B.
If the City 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 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
City or authority or its subsidiary, as appropriate, in writing that
the owner or mortgagee has elected to perform the remediation itself.
When the owner or mortgagee elects to perform the remediation itself,
it shall be required to post bond in favor of the City in order to
ensure performance. The amount and conditions of the bond shall be
determined by the Public Officer.
(1)
The cost of remediation incurred by the City pursuant to this section,
as so certified by the entity incurring the cost upon completion of
the remediation, shall constitute a lien upon the property first in
time and right to any other lien, whether the other lien was filed
prior to, or after the filing of any lien by the City, except for
City taxes, liens and assessments and any lien imposed pursuant to
the Spill Compensation and Control Act, N.J.S.A. 58:10-23.11 et seq.,
together with any interest thereon. The certification of cost shall
be filed and recorded as a lien by the entity incurring the cost with
the county clerk or register of deeds and mortgages, as appropriate,
in the county in which the property is located.
(2)
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 abandoned property list pursuant to Subsection B shall be prima facie evidence of the intent of the owner to continue to maintain the property as abandoned property.
(3)
The clearance, development, redevelopment, or repair of property
being maintained as an abandoned property pursuant to this article
shall be a public purpose and public use, for which the power of eminent
domain may be exercised.
A.
An owner may remove a property from the abandoned property list prior
to sale of the tax sale certificate by paying all taxes and City liens
due, including interest and penalties, and:
(1)
By posting cash or a bond equal to the cost of remediating all conditions
because of which the property has been determined to be abandoned
pursuant to Section 36 of P.L. 1996, 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, 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 City which shall use the cash or bond and any interest which
has accrued thereon for the purpose of demolishing or rehabilitating
the property or performing the environmental remediation. Any funds
remaining after the property has been demolished, rehabilitated or
cleaned up shall be returned to the owner.
A.
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 the furtherance of rehabilitation work
as authorized by said permits.
B.
If an entity or person other than the City has purchased or taken
assignment for the City of a tax sale certificate on a property that
has not been legally occupied for a period of six months, that property
shall not be placed on the abandoned property list if:
(1)
The owner of the certificate has continued to pay all City taxes
and liens on the property in the tax year when due; and
(2)
The owner of the certificate takes action to initiate a foreclosure
proceeding within six months after the property is eligible for foreclosure
pursuant to N.J.S.A. 54:5-86, and diligently pursues foreclosure proceedings
in a timely fashion thereafter.
C.
A property which is used on a seasonal basis shall be deemed to be
abandoned only if the property meets any two of the additional criteria
set forth under N.J.S.A. 55:19-81.
D.
Upon request of a purchaser or assignee of a tax sale certificate
seeking to bar the right of redemption on an abandoned property pursuant
to N.J.S.A. 54:5-86, the Public Officer or the City Tax Collector
shall, in a timely fashion, provide the requester with a certification
of abandonment that the property satisfies the definition of an abandoned
property in accordance with this article.
A.
When a person other than the City 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 months following the date of the
sale of the tax sale certificate.
B.
When the City is the purchaser at tax sale of any property on the
abandoned property list pursuant to N.J.S.A. 54:5-34, an action to
foreclose the right of redemption may be instituted in accordance
with the provisions of Subsection b. of N.J.S.A. 54:5-77. After the
foreclosure action is instituted, the right to redeem shall exist
and continue to exist until barred by the judgment of the Superior
Court; provided, however, that no redemption shall be permitted except
where the owner:
(1)
Posts cash or a bond equal to the cost of remediating the conditions
because of which the property was determined to be abandoned pursuant
to N.J.S.A. 55:19-56, as determined by the court; or
(2)
Demonstrates to the court that the conditions because of which
the property was determined to be abandoned pursuant to N.J.S.A. 55:19-56
have been remedied in full.
A.
The City may hold special tax sales with respect to those properties
eligible for tax sale pursuant to N.J.S.A. 54:5-19 which are also
on the abandoned property list.
B.
The Board of Commissioners shall establish criteria for eligibility
to bid on properties at the sale, which may include, but need not
be limited to:
(1)
Documentation of the bidder's ability to rehabilitate or otherwise
reuse the property consistent with City plans and regulations; commitments
by the bidder to rehabilitate or otherwise reuse the property, consistent
with City plans and regulations;
(2)
Commitments by the bidder to take action to foreclose on the
tax lien by a date certain; and
(3)
Such other criteria as the Board of Commissioners may determine
are necessary to ensure that the properties to be sold will be rehabilitated
or otherwise reused in a manner consistent with the public interest.
C.
The Board of Commissioners may establish minimum bid requirements
for a special tax sale that are less than the full amount of the taxes,
interest and penalties due, to help ensure that the properties will
be rehabilitated or otherwise utilized in a manner consistent with
the public interest.
D.
The Board of Commissioners may combine properties in said special
tax sale into bid packages, and require that bidders place a single
bid on each package, rejecting any and all bids on individual properties
that are submitted.
E.
The Board of Commissioners may sell said properties subject to the
provision that, if the purchaser fails to carry out any commitment
that has been set forth as a condition of sale or misrepresents any
material qualification that has been established as a condition of
eligibility to bid pursuant thereto, then the properties and any interest
thereto acquired by the purchaser shall revert to the City, and any
amount paid by the purchaser at the special tax sale shall be forfeited
to the City.
F.
In the event there are two or more qualified bidders for any property
or bid package in a special tax sale, the City may designate the unsuccessful
qualified bidder whose bid was closest to the successful bid as an
eligible purchaser. In the event that the selected purchaser of that
property or bid package fails to meet any of the conditions of sale
established by the City pursuant to this section and their interest
in the property or properties reverts to the City, the City may subsequently
designate the entity previously designated as an eligible purchaser
as the winning bidder for the property or properties, and assign the
tax sale certificates to that entity on the basis of that entity's
bid at the special tax sale, subject to the terms and conditions of
the special tax sale.
G.
The City shall provide notice of a special tax sale pursuant to N.J.S.A.
54:5-26. The notice shall include any special terms of sale established
by the City pursuant to this section. Nothing shall prohibit the City
from holding a special tax sale on the same day as a standard or accelerated
tax sale.
A.
When a person or entity other than the City 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.
B.
When the City is the purchaser at tax sale of any property on the
abandoned property list pursuant to N.J.S.A. 54:5-34, an action to
foreclose the right of redemption may be instituted in accordance
with the provisions of Subsection b of N.J.S.A. 54:5-77.
(1)
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:
(a)
Posts cash or a bond equal to the cost of remediating the conditions
because of which the property was determined to be abandoned pursuant
to N.J.S.A. 55:19-56, as determined by the court; or
(b)
Demonstrates to the court that the conditions because of which
the property was determined to be abandoned have been remedied in
full.
A.
A summary action or otherwise to transfer possession and control
of abandoned property in need of rehabilitation to the City may be
brought by the City in the Superior Court, County of Cumberland. If
the court shall find that the property is abandoned pursuant to 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
City to take possession and control of the property and develop a
rehabilitation plan.
(1)
If the City is granted possession, it 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 N.J.S.A. 55:19-92.
(2)
Failure by the owner, mortgage holder or lien holder to submit
plans for rehabilitation to the municipality, 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.
B.
A complaint filed pursuant to N.J.S.A. 55:19-84 and Subsection A of this section shall include:
(1)
Documentation that the property is on the municipal abandoned
property list or a certification by the Public Officer that the property
is abandoned; and
(2)
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.
C.
Within 10 days of filing a complaint, the plaintiff shall file a
notice of lis pendens with the County of Cumberland recording officer.
At least 30 days before filing the complaint, the City 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 months and of those
criteria that led to a determination of abandonment pursuant to 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
City officials, the City 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 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.
(3)
After serving the notice of intention pursuant to this subsection,
the City 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 N.J.S.A. 55:19-89.
D.
Any owner may defend against a complaint filed pursuant to this section
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.
(1)
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.
(2)
A plan submitted by an owner pursuant to this subsection shall
include, but not be limited to:
(a)
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;
(b)
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;
(c)
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
(d)
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.
E.
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.
(1)
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
City may apply to the court to have the owner's bond forfeited, possession
of the building transferred to the City to complete the rehabilitation
plan and authorization to use the bond proceeds for rehabilitation
of the property.
(2)
The owner shall provide quarterly reports to the City 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.
(3)
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.
F.
If an owner is unsuccessful in defending against a complaint filed
pursuant to this section, the mortgage holder or lien holder may seek
to be designated in possession of the property by submitting a plan
and posting a bond meeting the same conditions as set forth in N.J.S.A.
55:19-87. 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 or lien holder'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 lien holder, as the case may be, shall
provide quarterly reports to the court and the City on its activities
and progress toward rehabilitation and reuse of the property.
G.
If the mortgage holder or lien holder 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 City possession
of the property, and authorize the City to use the proceeds of the
bond for rehabilitation of the property.
(1)
Any sums incurred or advanced for the purpose of rehabilitating
the property by a mortgage holder or lien holder granted possession
of a property pursuant to this section, including court costs and
reasonable attorneys' fees, may be added to the unpaid balance due
that mortgage holder or lien holder, with interest calculated at the
same rate set forth in the note or security agreement; or, in the
case of a tax lien holder, at the statutory interest rate for subsequent
liens.
A.
If no mortgage holder or lienholder meets the conditions of N.J.S.A.
55:19-88, then the City shall submit a plan to the court which conforms
with the provisions of N.J.S.A. 55:19-87.
B.
The court shall grant the City possession of the property if it finds
that:
(1)
The proposed rehabilitation and reuse of the property is appropriate
and beneficial;
(2)
The City is qualified to undertake the rehabilitation and reuse
of the property; and
(3)
The plan submitted by the City represents a realistic and timely
plan for the rehabilitation and reuse of the property.
C.
The City 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.
A.
The City may exercise its rights under N.J.S.A. 55:19-78 et seq.,
directly, or may designate a qualified rehabilitation entity to act
as its designee for the purpose of exercising the City's rights where
that designation will further the rehabilitation and reuse of the
property consistent with City's plans and objectives. This designation
shall be made by resolution of the Board of Commissioners.
B.
Regardless of whether the City exercises its rights directly or designates
a qualified rehabilitation entity pursuant to this section, while
in possession of a property, the City shall maintain, safeguard, and
maintain insurance on the property. Notwithstanding the City's possession
of the property, nothing in this article 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.
C.
If the City has been granted possession of a property, the City 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.
D.
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.
E.
The court may approve the borrowing of funds by the City to rehabilitate
the property and may grant a lien or security interests with priority
over all other liens or mortgages other than municipal liens. For
the purposes of this section, the cost of rehabilitation shall include
reasonable nonconstruction costs, such as architectural fees or construction
permit fees, customarily included in the financing of the rehabilitation
of residential property.
F.
The City shall file a notice of completion with the court, and shall
also serve a copy on the owner and any mortgage holder or lien holder,
at such time as the City has determined that no more than six months
remain to the anticipated date on which rehabilitation will be complete.
This notice shall include an affidavit of the 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.
G.
Notwithstanding the granting of possession to the City, nothing in
this article 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 City 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. 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.
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 City has filed
a notice of completion with the court or, in the event the notice
of completion is filed within less than one year of the grant of possession,
within 30 days after the City has filed notice. The court may allow
additional time for good cause if that additional time does not materially
delay completion of the rehabilitation, place undue hardship on the
City, or affect any of the terms or conditions under which the City
has applied for or received financing for the rehabilitation of the
property.
B.
Any petition for reinstatement of the owner's control and possession
of the property shall:
(1)
Include a plan for completion of the rehabilitation and reuse
of the property consistent with the plan previously approved by the
court;
(2)
Provide legally binding assurances that the owner will comply
with all conditions of any grant or loan secured by the City or repay
those grants or loans in full, at the discretion of the maker of the
loan or grant; and
(3)
Be accompanied by payment equal to the sum of:
(a)
All City liens outstanding on the property;
(b)
All costs incurred by the City in bringing action with respect
to the property;
(c)
Any costs incurred by the City not covered by grants or loans
to be assumed or repaid pursuant to this section; and
(d)
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, County of Cumberland,
pending disposition of the petition.
A.
Prior to the granting of a petition on the part of the owner by the court pursuant to § 11-43.8, 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 City to make any repair on the property in the event of a code violation which is not corrected in timely fashion by the owner.
B.
The owner may seek approval of the court to be relieved of this requirement
after five 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.
A.
If the owner fails to petition for the reinstatement of control and
possession of the property within 30 days after the City has filed
a notice of completion or in any event within two years after the
initial grant of possession, or if the owner fails to meet any conditions
that may be set by the court in granting a reinstatement petition,
upon petition from the City, the court may grant the City title or
authorize the City to sell the property, subject to the provisions
of N.J.S.A. 55:19-96.
B.
Where the City seeks to gain title to the property, it shall purchase
the property for fair market value on such terms as the court shall
approve, and may place the proceeds of the sale in escrow with the
court.
C.
The court may authorize the City to sell the building free and clear
of liens, claims and encumbrances, in which event all such liens,
claims and encumbrances shall be transferred to the proceeds of sale
with the same priority as existed prior to resale in accordance with
the provisions of this section, except that municipal liens shall
be paid at settlement. The proceeds of the purchase of the property
shall be distributed as set forth in N.J.S.A. 55:19-97.
D.
The City 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.
E.
Upon approval by the court, the City shall sell the property on such
terms and at such price as the court shall approve, and may place
the proceeds of sale in escrow with the court. The court shall order
a distribution of the proceeds of sale after paying court costs in
the order of priority set forth in N.J.S.A. 55:19-97. The proceeds
paid pursuant to N.J.S.A. 55:19-96 shall be distributed in the following
order of priority:
(1)
The costs and expenses of sale;
(2)
Other governmental liens;
(3)
Repayment of principal and interest on any borrowing or indebtedness
incurred by the City and granted priority lien status pursuant to
Subsection a. of N.J.S.A. 55:19-98;
(4)
A reasonable development fee to the City 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;
(5)
Other valid liens and security interests, in accordance with
their priority; and
(6)
The owner.
The Public Officer, with the approval of the court, may place
a lien on the property to cover any costs of the City in connection
with a proceeding under this article incurred prior to the grant by
the court of an order of possession, which may include costs incurred
to stabilize or secure the property to ensure that it can be rehabilitated
in a cost-effective manner.
A.
With respect to any eminent domain proceeding carried out under 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:
(1)
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;
(2)
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 City in which the property is
located; and
(3)
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.
B.
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.
