[Adopted 3-30-2020 by Ord. No. 02:07-20. Amendments noted
where applicable.]
It is the purpose and intent of the Council to establish a process
to address the deterioration, crime, and decline in value of Borough
neighborhoods caused by property with foreclosing or foreclosed mortgages
located within the Borough, and to identify, regulate, limit and reduce
the number of these properties located within the Borough. 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 contribute to blight, declined
property values, and have 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.
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 Borough 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 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 non-related 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 Borough limits.
Any real property located in the Borough, 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 non-related
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 Borough to allow mortgagees the opportunity to
register properties and pay applicable fees as required in this chapter.
Six months from the date of the first action that requires
registration, as determined by the Borough, or its designee, and every
subsequent six months the property is registrable. The date of the
initial registration may be different than the date of the first action
that required registration.
Any utility and/or service that is essential for a building
to be habitable and/or perform a service necessary to comply with
all Borough 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 Borough that contains any building
or structure that is not lawfully occupied.
This chapter applies to foreclosing or foreclosed property within
the Borough.
Pursuant to the provisions of this chapter the Borough, or its
designee, shall establish a registry cataloging each registrable property
within the Borough, containing the information required by this chapter.
A.
Any mortgagee who holds a mortgage on Real Property located within
the Borough 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 Borough 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
in foreclosure. A separate registration is required for each registrable
property.
D.
Initial registration pursuant to this section shall contain at a
minimum the name of the mortgagee, the mailing address of the mortgagee,
e-mail address, telephone number and name of the property manager
and said person's address, e-mail address, and telephone number,
regardless of whether it is occupied or vacant.
E.
At the time of initial registration each registrant shall pay a non-refundable
semi-annual registration fee of ________ for each registrable property.
Subsequent non-refundable semi-annual registrations of properties
and fees in the amount of $500 are due within 10 days of the expiration
of the previous registration. Said fees shall be used to offset the
costs of: (1) registration and registration enforcement, (2) code
enforcement and mitigation related to defaulted properties, (3) post-closing
counseling and foreclosure intervention limited to owner-occupied
persons in default, which may not include cash and mortgage modification
assistance, and (4) for any related purposes as may be adopted in
the policy set forth in this chapter. Said fees shall be deposited
to a special account in the Borough'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.
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.
G.
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.
H.
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 semi-annual 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.
I.
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.
J.
Properties subject to this section shall remain subject to the semi-annual
registration requirement, and the inspection, security, and maintenance
standards of this section as long as the property remains registrable.
K.
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 Borough.
L.
If any property is in violation of this chapter, the Borough 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 the property into compliance.
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 of 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 Borough. Pursuant
to a finding and determination by the Borough Sheriff, Magistrate
or a court of competent jurisdiction, the Borough 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 Borough.
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 re-glazing 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
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 Borough.
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 Borough 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 .
|
|
AND IS INSPECTED ON A REGULAR BASIS .
|
|
THE PROPERTY MANAGER CAN BE CONTACTED .
|
|
BY TELEPHONE AT .
|
|
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 Borough. The Borough 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 Borough 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 Borough.
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
Officer, Council or special magistrate as soon as possible to address
the conditions of the property. Nothing herein shall limit the Borough
from abating any nuisance or unsafe condition by any other legal means
available to it.
B.
The Sheriff, Code Enforcement Officer, 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 Officer, Council or special magistrate may
direct the Borough 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 Borough for the
cost of temporarily securing the property, or of any abatement directed
by the Sheriff, Code Enforcement Officer, Council or special magistrate,
within 30 days of the Borough sending the mortgagee or owner the invoice
then the Borough may lien the property with such cost, along with
an administrative fee as determined in the Borough's fee ordinance
to recover the administrative personnel services. In addition to filing
a lien the Borough may pursue financial penalties against the mortgagee
or owner.
E.
The Borough may contract with an entity to implement this chapter,
and, if so, any reference to the Enforcement Officer herein shall
include the entity the Borough 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 Borough
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.
Registration fees and penalties outlined in this article may
be modified by resolution, administrative order, or an amendment to
this article, passed and adopted by the Council.
