As used in this article, the following terms shall have the
meanings set forth below:
CREDITOR
A state-chartered bank, savings bank, savings-and-loan association
or credit union, any person or entity required to be licensed under
the provisions of the New Jersey Residential Mortgage Lending Act,
P.L. 2009, c. 53 (N.J.S.A. 17:11C-51 et seq.), any foreclosing entity
subject to the provisions of N.J.S.A. 46:10B-51 (P.L. 2008, c. 127,
Section 17, as amended from time to time) and any entity acting on
behalf of the creditor named in the debt obligation, including, but
not limited to, servicers.
DEPARTMENT
The New Jersey Department of Community Affairs.
EXTERIOR OF PREMISES
Those portions of a structure which are exposed to public
view or are visible from adjoining or adjacent lots, including all
outside surfaces and appurtenances thereto, and the open land space
of any premises outside of any building or structure erected thereon,
including vacant lots.
MUNICIPALITY
The Township of Teaneck (Township) and shall include a qualified
rehabilitation entity that may be designated by the municipality pursuant
to Section 13 of P.L. 2003, c. 210 (N.J.S.A. 55:19-90) to act as its
agent to exercise any of the municipality's rights pursuant thereto.
NUISANCE
(a)
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.
(b)
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.
QUALIFIED REHABILITATION ENTITY
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."
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.
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.
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.
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.
A complaint filed pursuant to §
29A-148 hereof shall include:
(a) Documentation that the property is on the municipal abandoned property
list or a certification by the public officer that the property is
abandoned; and
(b) 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.
Any petition for reinstatement of the owner's control and possession of the property filed pursuant to §
29A-156 shall:
(a) Include a plan for completion of the rehabilitation and reuse of
the property consistent with the plan previously approved by the court;
(b) 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
(c) Be accompanied by payment equal to the sum of:
(1)
All municipal liens outstanding on the property;
(2)
All costs incurred by the municipality in bringing action with
respect to the property;
(3)
Any costs incurred by the municipality not covered by grants
or loans to be assumed or repaid pursuant to this section; and
(4)
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.
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.
The proceeds paid pursuant to §
29A-160(c) hereof shall be distributed in the following order of priority:
(a) The costs and expenses of sale;
(b) Other governmental liens;
(c) 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;
(d) 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;
(e) Other valid liens and security interests, in accordance with their
priority; and
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.
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.
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:
(a) 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.
(b) 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.
(c) 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.
(d) 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.
(e) 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.
(f) 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.
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:
(a) 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;
(b) 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
(c) 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.