[HISTORY: Adopted by the Township Committee of the Township
of Little Egg Harbor 9-11-2014 by Ord. No. 2014-14; amended in its entirety 11-12-2020 by Ord. No.
2020-15. Subsequent amendments noted where applicable.]
It is the purpose and intent of the Committee to establish a
process to address the deterioration, crime, and decline in value
of Township neighborhoods caused by property with foreclosing or foreclosed
mortgages located within the Township, and to identify, regulate,
limit and reduce the number of these properties located within the
Township. 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. 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 Committee'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.
One year from the date of the first action that requires
registration pursuant to this chapter, and every subsequent year that
the property is still a registerable property. The date of the initial
registration may be different than the date of the first action that
required registration.
[Added 8-11-2022 by Ord. No. 2022-08]
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 chapter. For purposes
of this chapter, 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 8-11-2022 by Ord. No. 2022-08]
Shall mean 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 Township to enforce the applicable code(s).[1]
The legal process by which a mortgagee, or other lien holder,
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, lien holder, 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 as assignee
or owner.
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, located within the State of New Jersey, 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 Township limits.
Any real property located in the Township, whether vacant
or occupied, that is 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.
A web-based electronic database of searchable real property
records used by the Township to allow mortgagees the opportunity to
register properties and pay applicable fees as required in this chapter.[2]
Any utility and/or service that is essential for a building
to be habitable and/or perform a service necessary to comply with
all Township codes. This includes, but is not limited to, electrical,
gas, water, sewer, lawn maintenance, pool maintenance, and snow removal.
Any parcel of land in the Township that contains any building
or structure that is not lawfully occupied.
In accordance with N.J.S.A. 40:48-2.12s3b(8), a property
shall be considered vacant and abandoned if it is not legally occupied
by a mortgagor or tenant, which is in such condition that it cannot
be legally reoccupied because of the presence or finding of at least
two of the following:
[Added 8-11-2022 by Ord. No. 2022-08]
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 windowpanes 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 "evidence of vacancy"
which immediately followed this definition, was repealed 8-11-2022
by Ord. No. 2022-08.
[2]
Editor's Note: The former definition of "semiannual registration"
which immediately followed this definition, was repealed 8-11-2022
by Ord. No. 2022-08.
This chapter applies to foreclosing or foreclosed property within
the Township.
The Township, or its designee, shall establish a registry cataloging
each registrable property within the Township, containing the information
required by this chapter.
[Amended 8-11-2022 by Ord. No. 2022-08]
A.
Any creditor or mortgagee filing a summons and complaint in an action
to foreclose real property in the Township of Little Egg Harbor shall,
in addition to the notice provided to the municipality pursuant to
N.J.S.A. 46:10B-51 or N.J.S.A. 40:48-2.12s2:
(1)
Register the residential or commercial property with the Township's
property registration program within 10 days of filing the summons
and complain in an action to foreclose, as a property in foreclosure
and, as part of that registration:
(a)
Provide the Township with the information regarding the creditor
required by N.J.S.A. 46:10B-51 or N.J.S.A. 40:48-2.12s2;
(b)
Appoint a property manager to inspect, maintain and secure the
real property subject to the mortgage in foreclosure;
(c)
Provide the name of the creditor or mortgagee, the mailing address
of the mortgagee, email address, telephone number and name of the
property manager and said person's address, email address, and
telephone number, regardless of whether it is occupied or vacant;
(d)
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
(e)
Identify whether the property is vacant and abandoned in accordance with the definition herein under § 274-2;
(f)
Register a separate registration for each property subject to
a filing a summons and complaint in an action to foreclose real property.
B.
Any mortgagee who holds a mortgage on real property located within
the Township shall perform an inspection of the property upon default
by the mortgagor as evidenced by the filing of a foreclosure action.
C.
Property inspected pursuant to Subsection A above that remains in foreclosure shall be inspected every 30 days by the creditor or mortgagee. If an inspection shows a change in the property's occupancy status, the creditor or mortgagee shall, within 10 days of that inspection, update the occupancy status of the property registration.
D.
If there is any change in the name, address, or telephone number
for a representative, agent, or individual authorized to accept service
on behalf of a creditor required to register pursuant to the property
registration program following the filing of the summons and complaint,
the creditor shall update the property registration program within
10 days of the change in that information.
E.
A creditor filing a summons and complaint in an action to foreclose shall, if the registered property becomes vacant and abandoned as defined in § 274-2 after the property is initially registered with the Township, update the property registration with the Township to reflect the change in the property's status within 10 days of the inspection performed under Subsection C above.
F.
A creditor filing a summons and complaint in an action to foreclose
shall be responsible for the care, maintenance, security, and upkeep
of the exterior of the property if the property is vacant and abandoned
at any time while the property is registered with the property registration
program.
G.
Any mortgagee or creditor located out-of-state shall be responsible
for appointing an in-state representative or agent to act for the
foreclosing creditor and shall provide the name and contact of said
in-state representative or agent to the Township Administrator within
10 days of the appointment of same.
H.
At the time of initial registration, each registrant shall pay a nonrefundable annual registration fee of $500 for each property that is required to be registered because a summons and complaint in an action to foreclose was filed by the creditor. Subsequent nonrefundable annual registrations of properties and fees in the amount of $500 are due within 10 days of the expiration of the previous registration. An additional $2,000 per property shall be assessed annually if the property is vacant or abandoned pursuant to § 274-2 when the summons and complaint in an action to foreclose is filed, or becomes vacant and abandoned pursuant to § 274-2 at any time thereafter while the property is in foreclosure. Said fees shall be deposited to a special account in the Township'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.
I.
If the mortgage and/or servicing on a 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.
J.
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 registrable property.
K.
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.
L.
Properties subject to this section shall remain subject to the annual
registration requirement and the inspection, security, and maintenance
standards of this section as long as the property remains registrable.
M.
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 Township.
N.
If any property is in violation of this chapter, the Township may
take the necessary action to ensure compliance with 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.
O.
Registration of foreclosure property does not alleviate the mortgagee
and/or owner from obtaining all required licenses, permits and inspections
required by applicable code or state statutes. Acquisition of required
licenses, permits and inspections or registration of rental property
does not alleviate the requirement for the property to be registered
under this section. The mortgagee and/or owner is expected to update
the status of the property in the event of a mortgagee-managed rental.
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 Township.
Pursuant to a finding and determination by the Township Sheriff, Magistrate
or a court of competent jurisdiction, the Township 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 Township.
A.
Properties subject to this chapter 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 creditor,
mortgagee 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.
[Amended 8-11-2022 by Ord. No. 2022-08]
D.
In addition to the above, the property is required to be secured
in accordance with the applicable code(s) of the Township.
[Amended 8-11-2022 by Ord. No. 2022-08]
E.
When a property subject to this chapter becomes vacant, it shall
be posted with the name, address and telephone number of the creditor
or out-of-state creditor's in-state representative or agent for the
purpose of receiving service of process. There shall also be posted
the name of the property manager, email address and twenty-four-hour
contact telephone number of the property manager. The property manager
shall be available to be contacted by the Township 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:
[Amended 8-11-2022 by Ord. No. 2022-08]
|
CREDITOR (OR IF APPLICABLE, OUT-OF-STATE CREDITOR'S IN-STATE
REPRESENTATIVE OR AGENT):
| |
|
| |
|
CREDITOR'S ADDRESS:
|
|
|
| |
|
CREDITOR'S TELEPHONE NUMBER:
| |
|
THIS PROPERTY IS MANAGED BY
| |
|
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
| |
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 Township. The Township 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 Township 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 Township.
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,
Committee or Special Magistrate as soon as possible to address the
conditions of the property. Nothing herein shall limit the Township
from abating any nuisance or unsafe condition by any other legal means
available to it. In the case of a violation for failure to provide
care, maintenance, security, and upkeep of the exterior of vacant
and abandoned property, such notice shall require the person or entity
to correct the violation within 30 days of receipt of the notice,
or within 10 days of receipt of the notice if the violation presents
an imminent threat to public health and safety.
[Amended 8-11-2022 by Ord. No. 2022-08]
B.
The Sheriff, Code Enforcement, Committee 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, Committee or Special Magistrate may direct
the Township 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 Township for the
cost of temporarily securing the property, or of any abatement directed
by the Sheriff, Code Enforcement Officer, Code Enforcement, Committee
or Special Magistrate, within 30 days of the Township sending the
mortgagee or owner the invoice, then the Township may lien the property
with such cost, along with an administrative fee as determined in
the Township's fee ordinance to recover the administrative personnel
services. In addition to filing a lien, the Township may pursue financial
penalties against the mortgagee or owner.
E.
The Township may contract with an entity to implement this chapter,
and, if so, any reference to the Enforcement Officer herein shall
include the entity the Township 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 Township
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.
[Amended 8-11-2022 by Ord. No. 2022-08]
A.
A creditor
or mortgagee found by the Municipal Court of the Township in which
the property subject to the ordinance is located, or by any other
court of competent jurisdiction, to be in violation, shall be subject
to a fine of $1,500 for each day of the violation. Any fines imposed
pursuant to this subsection shall commence 31 days following receipt
of the notice of violation, except if the violation presents an imminent
risk to public health and safety, in which case any fines shall commence
11 days following receipt of the notice.
B.
An out-of-state
creditor found by the Municipal Court of the Township in which the
property subject to the ordinance is located, or by any other court
of competent jurisdiction, to be in violation of the requirement to
appoint an in-state representative or agent pursuant to the ordinance
shall be subject to a fine of $2,500 for each day of the violation.
Any fines imposed on a creditor for the failure to appoint an in-state
representative or agent shall commence on the day after the ten-day
period set forth in N.J.S.A. 46:10B-51 or N.J.S.A. 40:48-2.12s3 for
providing notice to the Municipal Clerk that a summons and complaint
in an action to foreclose on a mortgage has been served.
