[HISTORY: Adopted by the City Council of the City of Passaic 5-19-2020 by Ord. No. 2266-20.[1] Amendments noted where applicable.]
[1]
Editor's Note: This ordinance also provided for the repeal
of former Ch. 151, Foreclosure Properties, adopted 5-24-2016 by Ord. No. 2054-16.
It is the purpose and intent of the Council to establish a process
to address the deterioration, crime, and decline in value of City
neighborhoods caused by property with foreclosing or foreclosed mortgages
located within the City and to identify, regulate, limit and reduce
the number of these properties located within the City. It has been
determined that owner-occupied structures are generally better maintained
when compared to vacant structures, even with a diligent off-site
property owner. Vacant structures or structures owned by individuals
who are economically strained and unable to meet their mortgage obligations
are often not properly or diligently maintained, which contributes
to blight, declined property values, and has a negative impact on
social perception of the residential areas where they are located.
It is the Council's further intent to establish a registration program
as a mechanism to help protect neighborhoods from becoming blighted
through the lack of adequate maintenance of properties that are in
foreclosure or foreclosed and to provide a mechanism to avert foreclosure
actions through timely intervention, education, or counseling of property
owners.
The following words, terms, and phrases, when used in this chapter,
shall have the meanings ascribed to them in this section, except where
the context clearly indicates a different meaning:
A mortgagee or an agent or assignee of a mortgagee, such
as the servicer, who has filed a complaint in the Superior Court seeking
to foreclose upon a residential or commercial mortgage. If the entity
seeking to foreclose upon the residential or commercial mortgage changes
as a result of an assignment, transfer, or otherwise after the filing
of the foreclosure complaint in the Superior Court, the new entity
shall be deemed the creditor for purposes of this section. For purposes
of this section, a creditor shall not include the state, a political
subdivision of the state, a state, county, or local government entity,
or their agent or assignee, such as the servicer.
[Added 9-6-2022 by Ord. No. 2357-22]
That the mortgagor has not complied with the terms of the
mortgage on the property, or the promissory note, or other evidence
of the debt, referred to in the mortgage.
Any law enforcement officer, building official, zoning inspector,
code enforcement officer, fire inspector, building inspector, or other
person authorized by the City to enforce the applicable code(s).
Any condition that, on its own or combined with other conditions
present, would lead a reasonable person to believe that the property
is vacant. Such conditions may include, but are not limited to: overgrown
and/or dead vegetation; past-due utility notices and/or disconnected
utilities; accumulation of trash, junk or debris; abandoned vehicles,
auto parts and/or materials; the absence of furnishings and/or personal
items consistent with habitation or occupancy; the presence of an
unsanitary, stagnant swimming pool; the accumulation of newspapers,
circulars, flyers and/or mail; statements by neighbors, passers-by,
delivery agents or government agents; and/or the presence of boards
over doors, windows or other openings in violation of applicable code.
The legal process by which a mortgagee, or other lienholder,
terminates or attempts to terminate a property owner's equitable right
of redemption to obtain legal and equitable title to the real property
pledged as security for a debt or the real property subject to the
lien. The legal process is not concluded until the property obtained
by the mortgagee, lienholder, or their designee, by certificate of
title, or any other means, is sold to a nonrelated bona fide purchaser
in an arm's length transaction to satisfy the debt or lien.
The creditor, including, but not limited to, trustees; mortgage
servicing companies; lenders in a mortgage agreement; any agent, servant,
or employee of the creditor; any successor in interest; or any assignee
of the creditor's rights, interests or obligations under the mortgage
agreement; or any other person or entity with the legal right to foreclose
on the real property, excluding governmental entities.
Every person, entity, or mortgagee who, alone or severally
with others, has legal or equitable title to any real property as
defined by this chapter; has legal care, charge, or control of any
such property; is in possession or control of any such property; and/or
is vested with possession or control of any such property. The property
manager shall not be considered the owner.
Any party designated by the owner as responsible for inspecting,
maintaining and securing the property as required in this chapter.
Any residential or commercial land and/or buildings, leasehold
improvements and anything affixed to the land, or portion thereof
identified by a property parcel identification number, located in
the City limits.
Any real property located in the City, whether vacant or occupied,
that is encumbered by a mortgage subject to an ongoing foreclosure
action by the mortgagee or trustee, has been the subject of a foreclosure
action by a mortgagee or trustee and a judgment has been entered,
or has been the subject of a foreclosure sale where the title was
transferred to the beneficiary of a mortgage involved in the foreclosure
and any properties transferred under a deed in lieu of foreclosure/sale.
The designation of a "foreclosure" property as "registrable" shall
remain in place until such time as the property is sold to a nonrelated
bona fide purchaser in an arm's-length transaction or the foreclosure
action has been dismissed; or
Any property that is vacant for more than 30 days or any cancellation
of utility or service, whichever occurs first.
A web-based electronic database of searchable real property
records, used by the City to allow mortgagees and owners the opportunity
to register properties and pay applicable fees as required in this
chapter.
The title holder of a vacant and abandoned property or a
creditor responsible for the maintenance of a property pursuant to
Section 17 of P.L. 2008, c. 127 (N.J.S.A. 46:10B-51).
[Added 9-6-2022 by Ord. No. 2357-22]
Six months from the date of the first action that requires
registration, as determined by the City, or its designee, and every
subsequent six months. The date of the initial registration may be
different than the date of the first action that required registration.
An address at which a natural person who is the responsible
party or an authorized agent actually resides or actively uses for
business purposes, and shall include a street name or rural delivery
route.
[Added 9-6-2022 by Ord. No. 2357-22]
Any utility and/or service that is essential for a building
to be habitable and/or perform a service necessary to comply with
all City codes. This includes, but is not limited to, electrical,
gas, water, sewer, lawn maintenance, pool maintenance, and snow removal.[1]
Any residential or commercial building which is not legally
occupied by a mortgagor or tenant, which is in such condition that
it cannot be legally reoccupied, and at which at least two of the
following conditions exist:
[Added 9-6-2022 by Ord. No. 2357-22]
Overgrown or neglected vegetation;
The accumulation of 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 materials on the property;
The accumulation of junk, litter, trash, or debris on the property;
The absence of window treatments such as blinds, curtains, or
shutters;
The absence of furnishings and personal items;
Statements of neighbors, delivery persons, or government employees
indicating that the property is vacant and abandoned;
Windows or entrances to the property that are boarded up or
closed off, or multiple window 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 due to acts of vandalism, loitering,
criminal conduct, or the physical destruction or deterioration of
the property;
An uncorrected violation of a 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; or
Any other reasonable indicia of abandonment.
[1]
Editor's Note: The former definition of "vacant," which immediately
followed, was repealed 9-6-2022 by Ord. No. 2357-22.
This chapter applies to foreclosing, foreclosed, and vacant
property within the City.
The City, or its designee, shall establish a registry consistent with § 151-2, which shall catalog each registrable property within the City and contain the information required by this chapter.
A.
Any mortgagee who holds a mortgage on real property located within
the City shall perform an inspection of the property upon default
by the mortgagor as evidenced by the filing of a foreclosure action.
B.
Property inspected pursuant to Subsection A above that remains in foreclosure shall be inspected every 30 days by the mortgagee or mortgagee's designee. If an inspection shows a change in the property's occupancy status, the mortgagee shall, within 10 days of that inspection, update the occupancy status of the property registration.
C.
Within 10 days of the date any mortgagee files a foreclosure action,
the mortgagee shall register the real property with the City Registry
and, at the time of registration, indicate whether the property is
vacant, and if so shall designate in writing a property manager to
inspect, maintain, and secure the real property subject to the mortgage
under a foreclosure action. A separate registration is required for
each property under a foreclosure action, regardless of whether it
is occupied or vacant. As part of that registration, the mortgagee
shall:
[Amended 9-6-2022 by Ord. No. 2357-22]
(1)
Provide
the municipality with the information regarding the creditor required
by paragraph (1) of subsection a of section 17 of P.L. 2008, c. 127
(N.J.S.A. 46:10B-51);
(2)
Identify
the date the summons and complaint in an action to foreclose on a
mortgage was filed against the subject property, the court in which
it was filed, and the docket number of the filing; and
D.
Initial registration pursuant to this section shall contain at a
minimum the name of the mortgagee, the mailing address of the mortgagee,
email address, and telephone number, and name of the property manager
and said person's address, email address, and telephone number.
E.
At the time of initial registration, each registrant shall pay a
nonrefundable semiannual registration fee of $500 for each property.
Subsequent nonrefundable semiannual renewal registrations of properties
and fees in the amount of $500 are due within 10 days of the expiration
of the previous registration.
(1)
Said fees shall be used to offset the costs of:
(a)
Registration and registration enforcement;
(b)
Code enforcement and mitigation related to defaulted properties;
(c)
Post-closing counseling and foreclosure intervention limited
to owner-occupied persons in default, which may not include cash and
mortgage modification assistance; and
(d)
For any related purposes as may be adopted in the policy set
forth in this chapter.
(2)
Said fees shall be deposited to a special account in the City's department
dedicated to the cost of implementation and enforcement of this chapter
and fulfilling the purpose and intent of this chapter. None of the
funds provided for in this section shall be utilized for the legal
defense of foreclosure actions.
F.
Each individual property on the Registry that has been registered
for 12 months or more prior to the effective date shall have 30 days
to renew the registration and pay the nonrefundable $500 semiannual
registration fee. Properties registered less than 12 months prior
to the effective date shall renew the registration every six months
from the expiration of the original registration renewal date and
shall pay the nonrefundable $500 semiannual registration fee.
G.
If the mortgage and/or servicing on a registrable property is sold
or transferred, the new mortgagee is subject to all the terms of this
chapter. Within 10 days of the transfer, the new mortgagee shall register
the property or update the existing registration. The previous mortgagee(s)
will not be released from the responsibility of paying all previous
unpaid fees, fines, and penalties accrued during that mortgagee's
involvement with the registrable property.
H.
If the mortgagee sells or transfers the registrable property in a
non-arm's-length transaction to a related entity or person, the transferee
is subject to all the terms of this chapter. Within 10 days of the
transfer, the transferee shall register the property or update the
existing registration. Any and all previous unpaid fees, fines, and
penalties, regardless of who the mortgagee was at the time registration
was required, including, but not limited to, unregistered periods
during the foreclosure process, are the responsibility of the transferee
and are due and payable with the updated registration. The previous
mortgagee will not be released from the responsibility of paying all
previous unpaid fees, fines, and penalties accrued during that mortgagee's
involvement with the foreclosed property.
I.
If the foreclosing or foreclosed property is not registered, or the
registration fee is not paid within 30 days of when the registration
or renewal is required pursuant to this section, a late fee equivalent
to 10% of the semiannual registration fee shall be charged for every
thirty-day period, or portion thereof, the property is not registered
and shall be due and payable with the registration.
J.
This section shall also apply to properties that have been the subject
of a foreclosure sale where title is transferred to the mortgagee
as well as any properties transferred to the mortgagee under a deed
in lieu of foreclosure or by any other legal means.
K.
Properties subject to this section shall remain subject to the semiannual
registration requirement and the inspection, security, and maintenance
standards of this section as long as the property remains registrable
property.
L.
Failure of the mortgagee and/or property owner of record to properly
register or to modify the registration to reflect a change of circumstances
as required by this chapter is a violation of this chapter and shall
be subject to enforcement by any of the enforcement means available
to the City.
M.
If any property is in violation of this chapter, the City may take
the necessary action to ensure compliance and/or place a lien on the
property for the cost of the outstanding obligation and any additional
cost incurred to bring the property into compliance.
A.
Any owner of vacant property located within the City shall, within
90 days after the property becomes vacant, register the real property
with the City Registry.
[Amended 9-6-2022 by Ord. No. 2357-22]
B.
Initial registration pursuant to this section shall contain at a
minimum:
[Amended 9-6-2022 by Ord. No. 2357-22]
(1)
The
name, street address, and telephone number of a natural person who
resides or maintains an office within the state and who is either
the responsible party or an authorized agent designated by the responsible
party to receive notices and complaints of property maintenance and
code violations on behalf of the responsible party; and
(2)
The
name, street address, and telephone number of the person responsible
for maintaining the property, if different.
C.
At the time of initial registration, each registrant shall pay a
nonrefundable semiannual registration fee of $500 for each vacant
property. Subsequent nonrefundable semiannual renewal registrations
of vacant properties and fees in the amount of $500 are due within
10 days of the expiration of the previous registration.
D.
If the property is sold or transferred, the new owner is subject
to all the terms of this chapter. Within 30 days of the transfer,
the new owner shall register the vacant property or update the existing
registration. The previous owner(s) will not be released from the
responsibility of paying all previous unpaid fees, fines, and penalties
accrued during that owner's involvement with the vacant property.
[Amended 9-6-2022 by Ord. No. 2357-22]
E.
If the vacant property is not registered, or either the registration
fee or the semiannual registration fee is not paid within 30 days
of when the registration or semiannual registration is required pursuant
to this section, a late fee equivalent to 10% of the semiannual registration
fee shall be charged for every thirty-day period, or portion thereof,
the property is not registered and shall be due and payable with the
registration. This section shall apply to the initial registration
and registrations required by subsequent owners of the vacant property.
F.
Properties subject to this section shall remain subject to the semiannual
registration requirement and the inspection, security, and maintenance
standards of this section as long as the property is vacant.
G.
Failure of the owner to properly register or to modify the registration
to reflect a change of circumstances as required by this chapter is
a violation of this chapter and shall be subject to enforcement by
any of the enforcement means available to the City.
H.
If any property is in violation of this chapter, the City may take
the necessary action to ensure compliance and place a lien on the
property for the cost of the outstanding obligation and any additional
cost incurred to bring the property into compliance.
I.
Properties registered as a result of this section are not required
to be registered again pursuant to the foreclosure mortgage property
section.
A.
Properties subject to this chapter shall be kept free of weeds, overgrown
brush, dead vegetation, trash, junk, debris, building materials, any
accumulation of newspaper circulars, flyers, notices, except those
required by federal, state or local law, discarded personal items,
including, but not limited to, furniture, clothing, large and small
appliances, printed material, or any other items that give the appearance
that the property is abandoned.
B.
Registrable property shall be maintained free of graffiti or similar
markings by removal or painting over with an exterior-grade paint
that matches the color of the exterior structure.
C.
Front, side, and rear yards, including landscaping, of registrable
property shall be maintained in accordance with the applicable code(s)
at the time registration is required.
D.
Registrable yard maintenance shall include, but not be limited to,
grass, ground covers, bushes, shrubs, hedges or similar plantings,
decorative rock or bark or artificial turf/sod. Acceptable maintenance
of yards and/or landscape shall not include weeds, gravel, broken
concrete, asphalt or similar material.
E.
Maintenance shall include, but not be limited to, watering, irrigation,
cutting and mowing of required ground cover or landscape and removal
of all trimmings.
F.
Pools and spas shall be maintained so the water remains free and
clear of pollutants and debris and shall comply with the regulations
set forth in the applicable code(s).
G.
Failure of the mortgagee, owner, and transferees to properly maintain
the property as required by this chapter may result in a violation
of the applicable code(s) and issuance of a citation or notice of
violation in accordance with the applicable code of the City. Pursuant
to a finding and determination by the City Sheriff, Magistrate or
a court of competent jurisdiction, the City may take the necessary
action to ensure compliance with this section.
H.
In addition to the above, the property is required to be maintained
in accordance with the applicable code(s) of the City.
A.
Properties subject to these sections shall be maintained in a secure
manner so as not to be accessible to unauthorized persons.
B.
A "secure manner" shall include, but not be limited to, the closure
and locking of windows, doors, gates and other openings of such size
that may allow a child to access the interior of the property or structure.
Broken windows, doors, gates, and other openings of such size that
may allow a child to access the interior of the property or structure
must be repaired. Broken windows shall be secured by reglazing of
the window.
C.
If a property is registrable, and the property has become vacant
or blighted, a property manager shall be designated by the mortgagee
and/or owner to perform the work necessary to bring the property into
compliance with the applicable code(s), and the property manager must
perform regular inspections to verify compliance with the requirements
of this chapter and any other applicable laws.
D.
In addition to the above, the property is required to be secured
in accordance with the applicable code(s) of the City.
E.
When a property subject to this chapter becomes vacant, it shall
be posted with the name and twenty-four-hour contact telephone number
of the property manager. The property manager shall be available to
be contacted by the City Monday through Friday between 9:00 a.m. and
5:00 p.m., legal holidays excepted. The sign shall be placed in a
window facing the street and shall be visible from the street. The
posting shall be no less than 18 inches by 24 inches and shall be
of a font that is legible from a distance of 45 feet. The posting
shall contain the following language with supporting information:
|
THIS PROPERTY IS MANAGED BY
|
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AND IS INSPECTED ON A REGULAR BASIS.
|
|
THE PROPERTY MANAGER CAN BE CONTACTED
|
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BY TELEPHONE AT
|
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OR BY EMAIL AT .
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F.
The posting required in Subsection E above shall be placed on the interior of a window facing the street to the front of the property so that it is visible from the street, or secured to the exterior of the building/structure facing the street to the front of the property so that it is visible from the street, or if no such area exists, on a stake of sufficient size to support the posting in a location that is at all times visible from the street to the front of the property but not readily accessible to vandals. Exterior posting shall be constructed of and printed with weather-resistant materials.
G.
Failure of the mortgagee and/or property owner of record to properly
inspect and secure a property subject to this chapter, and post and
maintain the signage noted in this section, is a violation and shall
be subject to enforcement by any of the enforcement means available
to the City. The City may take the necessary action to ensure compliance
with this section and recover costs and expenses in support thereof.
The provisions of this chapter are cumulative with and in addition
to other available remedies. Nothing contained in this chapter shall
prohibit the City from collecting on fees, fines, and penalties in
any lawful manner, or enforcing its codes by any other means, including,
but not limited to, injunction, abatement, or as otherwise provided
by law or ordinance.
All registrable property is at risk of being a public nuisance
and, if vacant or blighted, can constitute a public nuisance, the
abatement of which, pursuant to the police power, is hereby declared
to be necessary for the health, welfare, and safety of the residents
of the City.
A.
If the enforcement officer has reason to believe that a property
subject to the provisions of this chapter is posing a serious threat
to the public health, safety, and welfare, the code enforcement officer
may temporarily secure the property at the expense of the mortgagee
or owner, and may bring the violations before the code enforcement,
Council or special magistrate as soon as possible to address the conditions
of the property. Nothing herein shall limit the City from abating
any nuisance or unsafe condition by any other legal means available
to it.
B.
The Sheriff, code enforcement, Council or special magistrate shall
have the authority to require the mortgagee or owner affected by this
section to implement additional maintenance and/or security measures,
including, but not limited to, securing any and all doors, windows
or other openings, employment of an on-site security guard or other
measures as may be reasonably required to help prevent further decline
of the property.
C.
If there is a finding that the condition of the property is posing
a serious threat to the public health, safety, and welfare, then the
Sheriff, code enforcement, Council or special magistrate may direct
the City to abate the violations and charge the mortgagee or owner
with the cost of the abatement.
D.
If the mortgagee or owner does not reimburse the City for the cost
of temporarily securing the property, or of any abatement directed
by the Sheriff, code enforcement officer, code enforcement, Council
or special magistrate, within 30 days of the City sending the mortgagee
or owner the invoice, then the City may lien the property with such
cost, along with an administrative fee as determined in the City's
Fee Ordinance[1] to recover the administrative personnel services. In addition
to filing a lien, the City may pursue financial penalties against
the mortgagee or owner.
E.
The City may contract with an entity to implement this chapter, and,
if so, any reference to the "enforcement officer" herein shall include
the entity the City contracts with for that purpose.
Whoever opposes, obstructs or resists any enforcement officer
or any person authorized by the enforcement office in the discharge
of duties as provided in this chapter shall be punishable as provided
in the applicable code(s) or a court of competent jurisdiction.
Any enforcement officer or any person authorized by the City
to enforce the sections here within shall be immune from prosecution,
civil or criminal, for reasonable, good-faith entry upon real property
while in the discharge of duties imposed by this chapter.
Unless otherwise provided for in this chapter, a violation of
this chapter is declared unlawful.
