[Added by Ord. No. 22-2016, 9-6-2016; amended by Ord. No. 1-2017, 1-17-2017; Ord. No. 21-2019, 8-13-2019]
As used in this article, the following terms shall have the
meanings set forth below:
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.
The New Jersey Department of Community Affairs.
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.
Any person or entity holding a note, mortgage or other interest
secured by the building or any part thereof.
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.
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.
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.
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.
The holder or holders of title to an abandoned property.
A lot, plot or parcel of land, right-of-way or multiples
thereof, including the building or structures thereon.
Any building or structure and the land appurtenant thereto.
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.
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."
A motor vehicle without a valid and current state inspection
sticker.
Any electric or natural gas public utility that is regulated
under the jurisdiction of the Board of Public Utilities.
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.
(a)
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:
(1)
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;
(2)
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;
(3)
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;
(4)
The property has been determined to be a nuisance by the public officer in accordance with § 29A-147 hereof; or
(5)
Two or more of the following indicia of abandonment exist:
a.
Overgrown or neglected vegetation.
b.
The accumulation of the newspapers, circulars, flyers or mail
on the property.
c.
Disconnected gas, electric, or water utility services to the
property.
d.
The accumulation of hazardous, noxious, or unhealthy substances
or material on the property.
e.
The accumulation of junk, litter, trash or debris on the property.
f.
The absence of window treatment such as blinds, curtains or
shutters.
g.
The absences of furnishings and personal items.
h.
Statements of neighbors, association management, delivery person
or government employee indicating that the residence is vacant and
abandoned.
i.
Windows or entrances to the property that are boarded up or
closed off or multiple panes that are damaged, broken and unrepaired.
j.
Doors to the property that are smashed through, broken off,
unhinged, or continuously unlocked.
k.
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.
l.
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.
m.
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.
n.
A written statement issued by a mortgagor expressing the clear
intent of all mortgagors to abandon the property.
(b)
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.
(a)
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:
(1)
The owner of the certificate has continued to pay all municipal taxes
and liens on the property in the tax year when due; and
(2)
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.
(b)
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.
(c)
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.
(d)
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.
(a)
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.
(b)
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.
(c)
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.
(d)
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:
(1)
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;
(2)
Name, address, email address and contact telephone number of
any local agent(s) or representative for the building or lot;
(3)
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;
(4)
Common address and Tax Assessor's block and lot designation
of the building or lot;
(5)
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.
(e)
The responsible agent for the property shall be required to do the
following:
(1)
Secure the structure.
(2)
Post a notice on the structure with the contact information
of the agent.
(3)
Inspect the property monthly and submit a report of said inspection
to the public official responsible for enforcement.
(4)
Winterize the structure.
(5)
Remove snow from the public walks.
(6)
Adhere to the Township's Property Maintenance Code.
(f)
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)
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 abandoned property.
(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.
(a)
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:
(1)
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.
(2)
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."
(3)
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.
(4)
Ensure that all bushes and trees are trimmed and that they do
not interfere with neighboring properties.
(5)
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.
(b)
Lots must be clear of all garbage, litter and debris. Abandoned properties
must be clear of all vehicles: cars, boats, campers, etc.
(c)
All sidewalks bordering abandoned properties must be maintained and
be cleared of snow, ice, tripping hazards, obstructions, garbage,
litter and debris.
(d)
The owner and/or creditor shall perform regular weekly inspections
of the abandoned property to ensure compliance with the requirements
of this section.
(e)
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.
(f)
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.
(a)
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)]
(b)
The initial registration shall be prorated according to the month
of registration.
(c)
There shall be no credit when a property becomes legally occupied
during a renewal period.
(d)
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.
(e)
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.
(a)
A property may be determined to be a nuisance if:
(1)
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);
(2)
The condition and vacancy of the property materially increase
the risk of fire to the property and adjacent properties;
(3)
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;
(4)
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
(5)
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.
(b)
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.
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.
(a)
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.
(b)
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.
(1)
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.
(2)
After the complaint is filed, the complaint shall be served
on the parties in interest in accordance with the New Jersey Rules
of Court.
(c)
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.
(a)
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.
(b)
A plan submitted by an owner pursuant to this section shall include,
but not be limited to:
(1)
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;
(2)
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;
(3)
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
(4)
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.
(c)
Court approval.
(1)
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.
(2)
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.
(3)
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.
(d)
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.
(a)
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.
(1)
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.
(2)
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.
(b)
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.
(a)
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.
(b)
The court shall grant the municipality possession of the property
if it finds that:
(1)
The proposed rehabilitation and reuse of the property are appropriate
and beneficial;
(2)
The municipality is qualified to undertake the rehabilitation
and reuse of the property; and
(3)
The plan submitted by the municipality represents a realistic
and timely plan for the rehabilitation and reuse of the property.
(c)
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.
(d)
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.
(a)
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.
(b)
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.
(c)
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.
(a)
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.
(1)
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.
(2)
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.
(3)
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.
(b)
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.
(c)
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:
(d)
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.
(e)
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.
(a)
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.
(b)
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:
(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.
(a)
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.
(1)
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.
(b)
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.
(c)
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:
(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
(f)
The owner.
(a)
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.
(b)
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)]
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.
(a)
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.
(b)
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.
(a)
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)]
(b)
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.
(c)
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.
(d)
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).
