[Ord. 6 S+FH, 4-19-2006 Preamble]
In the New Jersey Supreme Court decision, DKM Residential Properties Corporation v. The Township of Montgomery and the Construction Board of Appeals of the Township of Montgomery, the Court ruled that local code enforcement agencies may issue notices of violations to the builder after the certificate of occupancy has been issued and the builder has transferred title to the property.
A protective guard for homeowners against faulty construction by licensed builders is the new home warranty program which is required by law and can be utilized to file a claim for the repair of any defects which may arise in the building of new homes.
The Newark Municipal Council has received ongoing complaints of construction problems by new homeowners throughout the City who have purchased these properties for the most part, within redevelopment areas.
All City-owned properties which are available for sale to redevelopers are located in areas which have been designated to be in need of redevelopment and are conveyed at the nominal rate of $4 per square foot for the construction of market rate housing which has been selling in the price range of $350,000 — $650,000.
The Newark Municipal Council is desirous of incorporating more accountability and responsibility measures in the construction of new residential homes within the City's redevelopment areas and as such, desire to hold the redevelopment entity and the contractor/builder jointly responsible for the quality of workmanship of residential units.
The Newark Municipal Council is of the opinion that by holding the developing entity jointly responsible with the builder in the construction of residential units, that the quality of workmanship will greatly improve and the resolution of any workmanship defects will be addressed in a timely manner suitable to the homeowner.