[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.
[Ord. 6 S+FH, 4-19-2006 § 1]
a. 
Any redevelopment entity which has been designated by the Governing Body and which has been conveyed City-owned property for the new construction or substantiated rehabilitation of residential housing units within the City of Newark, shall be deemed to be held liable for and jointly responsible for the quality of workmanship of said structures along with the actual contractor/builder which may have been sub-contracted by the redevelopment entity.
b. 
In the event the local Building Code Enforcement Official for the City of Newark issues a notice of violation after the issuance of a certificate of occupancy and transfer of title, the City of Newark shall hold the redevelopment entity responsible for facilitating the correcting of the documented code violations. If the code violations are not abated in a timely manner and to the satisfaction of the homeowner, the City of Newark may deny the redevelopment entity the sale of additional City-owned property in the future until all violations are abated.