ARTICLE IX Abandoned Buildings

Any public or private condition that would constitute a nuisance according to the statutes, laws and regulations of the State of New Jersey, its governmental agencies or the ordinances of the Township.

QUALIFIED REHABILITATION ENTITY

Any physical condition existing in or on the exterior of any premises which is potentially dangerous, detrimental or hazardous to the life, health or safety of persons on, near or passing within the proximity of the premises where the condition exists.

OPERATOR

Any person, persons or entity not the owner, but including any agent of the owner, who has charge, possession, custody, care or control of a dwelling or premises or a part thereof.

OWNER

The holder or holders of title to an abandoned property.

PREMISES

A lot, plot or parcel of land, right-of-way or multiples thereof, including the building or structures thereon.

PROPERTY

Any building or structure and the land appurtenant thereto.

PUBLIC OFFICER

The Health Officer or such other person as he/she may designate within the Department of Health.

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 in urban areas.

REFUSE or RUBBISH

All discarded, useless, unusable, unused or worthless solid waste matter or materials, combustible or noncombustible, including, but not limited to, garbage, trash, ashes, paper, paper goods and products, wrappings, cans, bottles, containers, yard clippings, garden waste, debris, junk, glass, boxes, crockery, wood, plastic, rubber, leather, furniture, household goods, appliances, bedding, scrap lumber, scrap metal, construction material, inoperable machinery or parts thereof, garden or farming implements and supplies, dead or rotting vegetation, tires and abandoned, inoperative or unusable automobiles and vehicles and solid commercial or industrial waste. Anything herein to the contrary notwithstanding, a compost pile free of discarded foodstuffs shall not be deemed to be "refuse" or "rubbish."

UNREGISTERED MOTOR VEHICLE

A motor vehicle without a valid and current state inspection sticker.

UTILITY

Any electric or natural gas public utility that is regulated under the jurisdiction of the Board of Public Utilities.

VACANT PROPERTY

Any building used or to be used as a residence which is not legally occupied or at which substantially all lawful construction operations or residential occupancy has ceased, and which is in such condition that it cannot legally be reoccupied without repair or rehabilitation; provided, however, that any property that contains all building systems in working order and is being actively marketed by its owner for sale or rental shall not be deemed vacant. Residential properties that meet the aforementioned criteria and are subject to a summons and complaint in an action for foreclosure shall be deemed vacant property in accordance with P.L. 2014, c. 35, N.J.S.A. 40:48-2.12s. Property deemed to be abandoned property in accordance with the meaning of such term in the Abandoned Properties Rehabilitation Act, N.J.S.A. 55:19-78 et seq., shall also be deemed to be vacant property for purposes of this article.

Sec. 29A-140 Criteria for abandoned property.

Except as provided in § 29A-141, 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:

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;

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 pursuant to this section;

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;

The property has been determined to be a nuisance by the public officer in accordance with § 29A-147 hereof; or

Two or more of the following indicia of abandonment exist:

Overgrown or neglected vegetation.

The accumulation of the newspapers, circulars, flyers or mail on the property.

Disconnected gas, electric, or water utility services to the property.

The accumulation of hazardous, noxious, or unhealthy substances or material on the property.

The accumulation of junk, litter, trash or debris on the property.

The absence of window treatment such as blinds, curtains or shutters.

The absences of furnishings and personal items.

Statements of neighbors, association management, delivery person or government employee indicating that the residence is vacant and abandoned.

Windows or entrances to the property that are boarded up or closed off or multiple panes that are damaged, broken and unrepaired.

Doors to the property that are smashed through, broken off, unhinged, or continuously unlocked.

A risk to the health, safety or welfare of the public, or any adjoining or adjacent property owners, exists due to acts of vandalism, loitering, criminal conduct, or the physical destruction or deterioration of the property.

An uncorrected violation of the municipal building, housing or similar code during the preceding year, or an order by municipal authorities declaring the property to be unfit for occupancy and to remain vacant and unoccupied.

The mortgagee or other authorized party has secured or winterized the property due to the property being deemed vacant and unprotected or in danger of freezing.

A written statement issued by a mortgagor expressing the clear intent of all mortgagors to abandon the property.

Sec. 29A-141 Property which shall not be deemed abandoned.

A property which contains both residential and nonresidential space may be considered abandoned 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 and the property meets the criteria of either Subsection (a)(1) or Subsection (a)(4) of this section.

If an entity other than the municipality has purchased or taken assignment from the municipality 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:

The owner of the certificate has continued to pay all municipal taxes and liens on the property in the tax year when due; and

The owner of the certificate takes action to initiate foreclosure proceedings within six 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.

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 in § 29A-140 hereof.

A determination that a property is abandoned property under this article shall not constitute a finding that the use of the property has been abandoned for purposes of municipal zoning or land use regulation.

Sec. 29A-142 Creation of abandoned property list.

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).

The public officer is directed to identify abandoned property within the Township for the purpose of creating an abandoned property list throughout the Township pursuant to N.J.S.A. 55:19-55 and provide such notices and carry out such other tasks as are required to effectuate an abandoned property list as provided by law. Each item of abandoned property so identified shall include the tax block and lot number, the name and address of the owner of record, if known, the street address of the lot and the basis for a determination that the property is abandoned.

Sec. 29A-143 Registration of abandoned property.

All properties deemed to be abandoned property as defined herein shall be required to be registered with the Township, and registered through the Township in accordance with the procedures established by the Township within 60 days of said property being an abandoned property as defined herein. The registration shall remain valid for one year. The owner shall be required to renew the registration annually as long as the building or lot continues to be abandoned as defined herein and shall pay a registration or renewal fee in the amount prescribed within this article.

The owner shall notify the public officer within 30 days of any change in the registration information by filing an amended registration statement on a form provided by the public officer for such purpose.

The registration statement shall be deemed prima facie proof of the statements therein contained in any administrative enforcement proceeding or court proceeding instituted by the Township of Teaneck against the owner or owners of the property.

The owner of abandoned and vacant properties shall provide the following information to the public officer on the registration form or form(s) prescribed by the public officer:

Name, address, email address and contact telephone number of the owner; the owner's address must include a street address; a post office box is not acceptable;

Name, address, email address and contact telephone number of any local agent(s) or representative for the building or lot;

Name, address, email address and contact telephone number of the person assigned to the property for the security and maintenance of the building or lot;

Common address and Tax Assessor's block and lot designation of the building or lot;

The date on which the building became abandoned;

(6)

Proof of utility (gas, electric, water) connections or disconnections; and

(7)

Any other information reasonably required by the Township to ensure the safety of all persons and to prevent neglect.

The responsible agent for the property shall be required to do the following:

Secure the structure.

Post a notice on the structure with the contact information of the agent.

Inspect the property monthly and submit a report of said inspection to the public official responsible for enforcement.

Winterize the structure.

Remove snow from the public walks.

(6)

Adhere to the Township's Property Maintenance Code.

Sec. 29A-144 Abandoned property inspection.

The Health Department will be responsible to collect the registration fee and maintain the registration list and collect monthly reports.

(g)

The Tax Collector shall send the mortgage holder of record a notice requiring the property to be registered along with the tax notice once the property taxes become delinquent.

(h)

Any government entity that owns abandoned property will be exempt from the provisions of this section. For purposes of this section, the holder of a Federal Housing Administration (FHA) mortgage, United States Housing and Urban Development (HUD) mortgage, or any other federally insured mortgage shall not be considered a government entity and shall not be exempt from the provisions of this section. The owner of any property that is acquired by the owner through the foreclosure of an FHA mortgage, HUD mortgage or any other federally insured mortgage shall also not be exempt from the provisions of this section.

(i)

By designating an authorized agent under the provisions of this section, the owner consents to receive any and all notices of code violations concerning the registered abandoned property and all process in any court proceeding or administrative enforcement proceeding brought to enforce code provisions concerning the registered abandoned property by service of the notice of process on the authorized agent. Any owner who has designated an authorized agent under the provisions of this section shall be deemed to consent to the continuation of the agent's designation for the purposes of this section until the owner notifies the Township of a change of an authorized agent or until the owner files a new annual registration statement.

(j)

The owner is required to update the form within 30 days of a change of any information contained within the form.

(k)

(l)

The public officer may identify abandoned properties through his/her routine inspection process as well as through notification by residents or other community groups that a property may be eligible for inclusion on the registry. Notice will be served upon, or sent by mail, to the owner and will be deemed received by the owner upon personal delivery or five days after service by first-class mail.

After filing a registration statement or a renewal of a registration statement and upon reasonable notice, the owner and/or creditor of any abandoned property shall provide access to the Township to conduct an exterior and interior inspection of the building to determine compliance with the Municipal Code during the period covered by the initial registration or any subsequent renewal.

Sec. 29A-145 Requirements for owners and/or creditors of abandoned properties.

The owner and/or creditor of any abandoned property shall immediately upon possession or the filing of a summons and complaint in an action to foreclose on a residential property within the Township be immediately responsible for the care, maintenance, security and upkeep of the exterior of the property after the property becomes vacant and abandoned and shall:

Enclose and secure the building against unauthorized entry in accordance with the applicable provisions of the Code of the Township of Teaneck and as per the specifications established by the Department of Housing and Urban Development (HUD) for securing abandoned and/or vacant properties.

Post a sign affixed to the building indicating the name, address and telephone number of the owner, owner's authorized agent for the purpose of service of process (if designated pursuant to this article) and a New Jersey resident responsible for day-to-day supervision and management of the property, if such person is different from the owner or authorized agent. The sign shall be of a size and placed in such a location so as to be visible from the nearest public street or sidewalk, whichever is nearer, but shall be no smaller than eight inches by 10 inches and shall state: "Warning: This building is secured pursuant to Chapter 29a of the Township of Teaneck Code. Anyone entering this building without authorization will be subject to arrest."

Secure the building from unauthorized entry and maintain the sign until the building is again legally occupied or demolished or until repair or rehabilitation of the property is complete.

Ensure that all bushes and trees are trimmed and that they do not interfere with neighboring properties.

Ensure that grass does not exceed eight inches in height and that all grass clippings are removed from the lot when the grass is cut.

Lots must be clear of all garbage, litter and debris. Abandoned properties must be clear of all vehicles: cars, boats, campers, etc.

All sidewalks bordering abandoned properties must be maintained and be cleared of snow, ice, tripping hazards, obstructions, garbage, litter and debris.

The owner and/or creditor shall perform regular weekly inspections of the abandoned property to ensure compliance with the requirements of this section.

The owner and/or creditor shall maintain a property insurance policy for each registered property. Buildings with fewer than four residential units are required to be insured at a minimum of $300,000. All other properties must be insured at a minimum of $1,000,000.

If the owner and/or creditor of the abandoned property fails to comply with all provisions of this section, the Township shall take the necessary steps to bring the property into compliance with this section. All costs incurred by the Township in connection with its efforts to bring the property into compliance shall be forwarded to the Tax Collector for inclusion as a municipal lien on the property.

Sec. 29A-146 Fee schedule.

Registration fees, renewable annually so long as the building is deemed abandoned, for each building deemed to be abandoned are established in accordance with Appendix III, Fees and Charges for Certain Township Services, of Chapter 2 of this Code.

[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. II)]

The initial registration shall be prorated according to the month of registration.

There shall be no credit when a property becomes legally occupied during a renewal period.

The term for each registration year shall run from January 1 to December 31 of each year, with all fees due by January 1 of the year of registration.

An entity designated as a redeveloper pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., may apply for a registration fee exemption if all approved plans for the property comply with Township regulations and development has been delayed as a result project financing applications.

Sec. 29A-147 Criteria for determining nuisance.

Any fee collected pursuant to Subsection (a) above shall be utilized by the Township for the further maintenance and regulation of abandoned properties.

A property may be determined to be a nuisance if:

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);

The condition and vacancy of the property materially increase the risk of fire to the property and adjacent properties;

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;

The presence of vermin or the accumulation of debris, uncut vegetation or physical deterioration of the structure or grounds has created potential health and safety hazards and the owner has failed to take reasonable and necessary measures to remove the hazards; or

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.

Sec. 29A-148 Transfer of possession or control of abandoned property.

A public officer who determines a property to be a nuisance pursuant to Subsections (a)(1) through (5) of this section shall follow the notification procedures set forth in P.L. 1942, c. 112 (N.J.S.A. 40:48-2.3 et seq.).

A summary action or otherwise to transfer possession and control of abandoned property in need of rehabilitation to the municipality may be brought by the municipality 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 § 29A-140 hereof and the owner or party in interest has failed to submit and initiate a rehabilitation plan, then the court may authorize the municipality to take possession and control of the property and develop a rehabilitation plan. The municipality 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 § 29A-156 hereof. Failure by the owner, mortgage holder or lienholder 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.

Sec. 29A-149 Contents of complaint.

A complaint filed pursuant to § 29A-148 hereof shall include:

Documentation that the property is on the municipal abandoned property list or a certification by the public officer that the property is abandoned; and

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.

Sec. 29A-150 Notice requirements.

Within 10 days of filing a complaint pursuant to the provisions of this article, the plaintiff shall file a notice of lis pendens with the County Recording Officer of the county within which the building is located.

At least 30 days before filing the complaint, the municipality 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 § 29A-140 hereof.

The notice shall provide that unless the owner or a party in interest prepares and submits a rehabilitation plan to the appropriate municipal officials, the municipality 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 § 29A-156 hereof.

After the complaint is filed, the complaint shall be served on the parties in interest in accordance with the New Jersey Rules of Court.

After serving the notice of intent pursuant to Subsection (b) of this section, the municipality 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 § 29A-153 hereof.

Sec. 29A-151 Defenses.

Any owner may defend against a complaint filed pursuant to § 29A-149 hereof 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.

A plan submitted by an owner pursuant to this section shall include, but not be limited to:

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;

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;

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

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.

Court approval.

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.

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 municipality may apply to the court to have the owner's bond forfeited, possession of the building transferred to the municipality to complete the rehabilitation plan and authorization to use the bond proceeds for rehabilitation of the property.

The owner shall provide quarterly reports to the municipality 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.

Sec. 29A-152 Mortgage holders in possession.

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.

If an owner is unsuccessful in defending against a complaint filed pursuant to § 29A-149 hereof, 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 § 29A-153. 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 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.

The mortgage holder or lienholder, as the case may be, shall provide quarterly reports to the court and the municipality on its activities and progress toward rehabilitation and reuse of the property.

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 municipality possession of the property, and authorize the municipality to use the proceeds of the bond for rehabilitation of the property.

Sec. 29A-153 Municipality in possession.

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 Subsection (a) of this section, including court costs and reasonable attorneys' 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.

If no mortgage holder or lienholder meets the conditions of § 29A-152 hereof, then the municipality shall submit a plan to the court which conforms with the provisions of Subsection (b) of § 29A-151 hereof. The plan shall designate the entity which shall implement the plan, which may be the municipality or that entity designated in accordance with the provisions of § 29A-154 hereof.

The court shall grant the municipality possession of the property if it finds that:

The proposed rehabilitation and reuse of the property are appropriate and beneficial;

The municipality is qualified to undertake the rehabilitation and reuse of the property; and

The plan submitted by the municipality represents a realistic and timely plan for the rehabilitation and reuse of the property.

The municipality 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.

Sec. 29A-154 Right of municipality to rehabilitate or reuse abandoned property.

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.

The municipality may exercise its rights under this article directly or may designate a qualified rehabilitation entity to act as its designee for the purpose of exercising the municipality's rights where that designation will further the rehabilitation and reuse of the property consistent with municipal plans and objectives. This designation shall be made by resolution of the municipal governing body. The governing body may delegate this authority to the public officer.

Regardless of whether the municipality exercises its rights directly or designates a qualified rehabilitation entity pursuant to this section, while in possession of a property pursuant to this article, the municipality shall maintain, safeguard, and maintain insurance on the property.

Sec. 29A-155 Granting possession of abandoned property to municipality.

Notwithstanding the municipality'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.

If the municipality has been granted possession of a property pursuant to § 29A-153, the municipality 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.

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.

Notwithstanding the granting of possession to a municipality, 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 municipal 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.

The court may approve the borrowing of funds by a municipality to rehabilitate the property and may grant a lien or security interest with priority over all other liens or mortgages other than municipal liens. Prior to granting this lien priority, the court shall find that the municipality sought to obtain the necessary financing from the senior lienholder, which declined to provide such financing on reasonable terms; the municipality sought to obtain a voluntary subordination from the senior lienholder, which refused to provide such subordination; and 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 nonconstruction costs such as architectural fees or construction permit fees customarily included in the financing of the rehabilitation of residential property.

Where the municipality has been granted possession by the court in the name of the municipality, the municipality 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:

The entity to which the municipality's rights will be assigned is a qualified rehabilitation entity; and

The assignment will further the purposes of this section.

Where the municipality has designated a qualified rehabilitation entity to act on its behalf, the qualified rehabilitation entity shall provide quarterly reports to the municipality on its activities and progress toward rehabilitation and reuse of the property. The municipality, 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 municipality or its designee has failed to take diligent action toward rehabilitation of the property within one year from the grant of possession, then the court may request the municipality to designate another qualified rehabilitation entity to exercise its rights or, if the municipality fails to do so, may terminate the order of possession and return the property to its owner.

Sec. 29A-156 Petition for reinstatement of control or possession by owner.

The municipality 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 municipality 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.

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 municipality 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 municipality has filed notice.

Sec. 29A-157 Contents of petition to reinstate.

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 municipality, or affect any of the terms or conditions under which the municipality has applied for or received financing for the rehabilitation of the property.

Any petition for reinstatement of the owner's control and possession of the property filed pursuant to § 29A-156 shall:

Include a plan for completion of the rehabilitation and reuse of the property consistent with the plan previously approved by the court;

Provide legally binding assurances that the owner will comply with all conditions of any grant or loan secured by the municipality or repay those grants or loans in full, at the discretion of the maker of the loan or grant; and

Be accompanied by payment equal to the sum of:

All municipal liens outstanding on the property;

All costs incurred by the municipality in bringing action with respect to the property;

Any costs incurred by the municipality not covered by grants or loans to be assumed or repaid pursuant to this section; and

Sec. 29A-158 Obligations of owner prior to reinstatement.

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.

Prior to the granting of a petition on the part of the owner by the court pursuant to § 29A-156 hereof, 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 municipality 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 forfeited 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 § 29A-157 hereof. 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.

Sec. 29A-159 Title to municipality.

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 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 § 29A-156 hereof, upon petition from the entity in possession, the court may grant the municipality title or authorize the municipality to sell the property, subject to the provisions of § 29A-160 hereof.

Sec. 29A-160 Procedure to obtain title.

Where the municipality 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.

The court may authorize the municipality 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 § 29A-161 hereof.

The municipality 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.

Sec. 29A-161 Distribution of proceeds upon sale.

Upon approval by the court, the municipality 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 § 29A-161 hereof.

The proceeds paid pursuant to § 29A-160(c) hereof shall be distributed in the following order of priority:

The costs and expenses of sale;

Other governmental liens;

Repayment of principal and interest on any borrowing or indebtedness incurred by the municipality and granted priority lien status pursuant to § 29A-162(a) hereof;

A reasonable development fee to the municipality 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;

Other valid liens and security interests, in accordance with their priority; and

The owner.

Sec. 29A-162 Municipal liens.

The public officer, with the approval of the court, may place a lien on the property to cover any costs of the municipality in connection with a proceeding under this article incurred prior to the grant by the court of an order of possession under this article, 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 municipal lien for the purposes of N.J.S.A. 54:5-9 with the rights and status of a municipal lien pursuant thereto.

With the exception of the holding of special tax sales pursuant to § 29A-165 hereof, the remedies available under this article shall be available to the Township with respect to any abandoned property, whether or not the Township has established an abandoned property list and whether or not the property has been included on any such list.

[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. II)]

Sec. 29A-163 Exceptions to liens.

Notwithstanding any provision to the contrary in this article, a court may in its discretion deny a lienholder or mortgage holder of any or all rights or remedies afforded lienholders and mortgage holders under this article if the court finds that the owner of a property subject to any of the provisions of this article owns or controls more than a 50% 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.

Sec. 29A-164 Municipal recourse.

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 seq.), the municipality 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 10% interest or greater if the owner is any other business organization or entity recognized pursuant to law.

Sec. 29A-165 Tax sale requirements.

The municipality 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 municipality. If the municipality elects to hold a special tax sale, it shall conduct that sale subject to the following provisions:

The municipality 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 municipal plans and regulations; commitments by the bidder to rehabilitate or otherwise reuse the property, consistent with municipal 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 municipality 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.

The municipality 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 municipality, in order to ensure that the properties to be sold will be rehabilitated or otherwise reused in a manner consistent with the public interest.

The municipality 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.

The municipality 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 Subsection (a) of this section or misrepresents any material qualification that has been established as a condition of eligibility to bid pursuant thereto, then the properties and any interest therein acquired by the purchaser shall revert to the municipality, and any amount paid by the purchaser to the municipality at the special tax sale shall be forfeited to the municipality.

In the event there are two or more qualified bidders for any property or bid package in a special tax sale, the municipality may designate the unsuccessful but qualified bidder whose bid was closest to the successful bid as an eligible purchaser.

In the event that the purchaser of that property or bid package fails to meet any of the conditions of sale established by the municipality pursuant to this section, and their interest in the property or properties reverts to the municipality, the municipality 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 municipality 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 municipality pursuant to Subsection (b), (c) or (d) of this section. Nothing shall prohibit the municipality from holding a special tax sale on the same day as a standard or accelerated tax sale.

Sec. 29A-166 Eminent domain.

With respect to any eminent domain proceeding carried out, the fair market value of the property shall be established on the basis of an analysis which determines independently:

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;

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 municipality in which the property is located; and

Sec. 29A-167 Removal of property from abandoned property list.

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.

If a property, which an entity other than the municipality has purchased or taken assignment from the municipality 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 municipal 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 months after the property was first placed on the list, the property shall be restored to the abandoned property list.

Sec. 29A-168 Request to have property listed on abandoned property list.

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 section, "interested party" shall include any resident of the municipality, any owner or operator of a business within the municipality 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.

Any interested party may participate in any redetermination hearing held by the public officer pursuant to Section 36 of P.L. 1996, c. 62 (N.J.S.A. 55:19-55e). 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 it proposes to submit at the hearing.

Sec. 29A-169 Violations and penalties.

Any owner who is not in full compliance with this article or who otherwise violates any provision of this article or of the rules and regulations issued hereunder shall be subject to a fine of not less than $100 and not more than $2,000. Every day that a violation continues shall constitute a separate and distinct offense. Fines assessed under this section shall be recoverable from the owner and shall be a lien on the property.

[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. II)]

For purposes of this section, failure to file a registration statement in time, failure to provide correct information on the registration statement, and/or failure to comply with any other provisions of this article shall be deemed to be a violation hereunder.

The public officer shall be authorized to issue a notice to an owner and/or creditor that has filed a summons and complaint in an action to foreclose on a residential property within the Township, if the public officer determines that the owner and/or creditor has failed to provide for the care, maintenance, security, and/or upkeep of a vacant property.

Where an owner and/or creditor is an out-of-state owner and/or creditor, the notice shall be issued to the representative or agent that has been identified by the owner and/or creditor pursuant to § 29A-171(a) and (b).

The notice referenced in Subsection (d) of this section shall require the owner and/or creditor to correct the violation within 20 days of receipt of the notice, or within five days of receipt of the notice if the violation presents an imminent threat to public health and safety.