[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.