City of Newark, NJ Chapter 2:10 Department of Economic and Housing Development

Editor's Note: The Department of Development, established by Ord. 6 S+FL(S-1), 7-16-1986, as amended by 6 S+FM, 9-17-1986; Ord. 6 S+FT, 12-8-1986; Ord. 6 S+FN, 1-7-1987; Ord. 6 S+FF, 1-21-1987; Ord. 6 S+FD, 7-13-1988; Ord. 6 S+FM, 11-14-1988; Ord. 6 S+FJ, 2-15-1989; Ord. 6 S+FB, 12-1-1993; Ord. 6 S+FP, 8-3-1994; Ord. 6 S+FE, 5-17-1995; Ord. 6 S+FH, 9-6-1995; Ord. 6 S+FX, 10-2-1996; Ord. 6 S+FJ, 11-17-1997; Ord. 6 S+FC, 8-5-1998 was repealed by Ord. 6 S+FB (S), 9-16-1998; Ord. 6 S+FE (S), 9-16-1998 created the Department of Economic and Housing Development.

All the responsibilities and duties previously assigned the Division of the Office of Boards, the Central Planning Board, the Board of Adjustments and the Rent Control Board within the Department of Development (repealed by Ord. 6 S+FB(S), 9-16-1998) are now assigned to the Office of Boards, the Central Planning Board, the Board of Adjustment and the Rent Control Board respectively with the Department of Economic and Housing Development.

Editor's Note: Division of Development Assistance established by Ord. 6 S+FL (S-1), 7-16-1986 replaced by Division of Economic Development. See Section 2:10-1.3.

Editor's Note: Division of Demolition and Clearance established by Ord. 6 S+FL (S-1), 7-16-1986 abolished by Ord. 6 S+FM, 11-14-1988.

§ 2:10-1 ESTABLISHMENT AND ORGANIZATION OF DEPARTMENT OF ECONOMIC AND HOUSING DEVELOPMENT.

§ 2:10-1.1 Director of Economic and Housing Development; Divisions of the Department.

[Ord. 6 S+FE [S], 9-16-1998 § 2, 3; Ord. 6 S+FH, 4-7-2004 § 1]

a. There shall be a Department of Economic and Housing Development, the head of which shall be the Director of Economic and Housing Development. The Director's compensation shall be such sum annually as shall be fixed by ordinance. The Department shall consist of the following Divisions:

1. Housing Assistance.

2. Economic Development.

3. Property Management.

4. City Planning; and

5. Office of Boards.

b. The Director of Economic and Housing Development shall, prior to appointment, be qualified by education, training and experience in the process of the development of housing, commercial and industrial improvements within large urban areas.

c. The Director, through the Divisions and otherwise, shall direct and supervise the functions necessary to assist and encourage the timely and proper improvement to real property within the City. These functions shall include at a minimum the acquisition of real property; the development of maps and standards governing the development of the City; the management, maintenance and operation of property owned by the City but not needed for public use; the disposition of such property by sale or lease and the operation and administration of such incentive programs as may be established by the City to assist and encourage the development of property; the management and coordination of the Newark Urban Enterprise Zone Program in accordance with the agreement with the New Jersey Urban Enterprise Zone Authority.

d. The Director shall be responsible for the periodic study of market rate and low income housing within the City of Newark and shall make recommendations to the Municipal Council a minimum price for the sale of city-owned real estate for the construction of low income and market rate housing units. Until such time the Director's recommendations are authorized by the Governing Body, the minimum sales price for the development of market rate housing on City-owned real estate shall be no less than $4 per square foot. The minimum sales price of City-owned real estate for the development of low or moderate income housing shall be no less than $2 per square foot. These prices shall be applicable to both nonprofit and for-profit entities alike.

§ 2:10-1.2 Division of Housing Assistance; Manager; Duties.

[Ord. 6 S+FE (S), 9-16-1998 § 4; Ord. 6 S+FB, 3-17-2004 § 1; Ord. 6 S+FD, 1-19-2005 § 1; Ord. 6 S+FH, 5-4-2005 § 1; 6 S+FB, 9-19-2007 § 1-5]

a. There shall be within the Department of Economic and Housing Development a Division of Housing Assistance, the head of which shall be the Manager, Division of Housing Assistance.

b. The Division of Housing Assistance, under the supervision of the Director of Economic and Housing Development, shall have the following duties:

1. Serve as the housing assistance agency for the City and in so doing discharge the duties thereof.

2. Administer all programs established by the Federal, State and City governments which pertain to neighborhood housing rehabilitation and/or residential housing construction.

3. Provide such other assistance as is proper and necessary to permit and encourage the development of real property for residential purposes in a manner which is consistent with general law and local ordinances.

4. City of Newark Predatory Lending Program.

(a) Establishment. The Division of Housing Assistance is authorized to establish a City of Newark Predatory Lending Program. The selection criteria and regulation for participation in the program by qualifying homeowner occupants shall be consistent with all terms, rules, and regulations established by the City of Newark and Department of Economic and Housing Development. Funding of this program is subject to the availability of funds.

(b) Summary of Program. The City of Newark Predatory Lending Program will provide each homeowner with a zero interest deferred-loan, in the amount of assistance required for a mortgage reduction. The amount of the mortgage reduction will be equivalent to the cost of home repairs that must be completed for the home to comply with all established City of Newark building codes. The City of Newark will partner with the Bank of New York, which will refinance the mortgage, administer the applicant qualification process and monitor all home repairs. In order to ensure repayment of the loan, a lien will be placed on the property in the amount of the loan. The lien must be signed by the homeowner(s) and recorded. Homeowners must also execute a promissory note. During the twenty-year period of affordability, the amount of the loan will become due and payable upon sale or transfer of title of the property by the homeowner. If during the twenty-year period of affordability, the homeowner sells or transfers title to an income qualified homebuyer, the lender may, at its discretion, require the loan to be repaid or continue to hold the lien against the property. After the twenty-year period of affordability has expired, the amount of the lien will be reduced by 10% at the end of each subsequent year. After 30 years from the date of initial purchase, the loan will be forgiven and the lien removed.

(c) Authorization to Enter into Contract. The Director of the Department of Economic and Housing Development, or his designee, is authorized to enter into contracts, execute deeds or other necessary documents for participation in the City of Newark Predatory Lending Program with eligible Newark homeowner occupants upon their demonstration of compliance with all terms and regulations established by the Department of Economic and Housing Development. All contracts shall be attested by the City Clerk and approved as to form and legality by the Corporation Counsel.

(d) Annual Report to Council. The Director of the Department of Economic and Housing Development shall provide the Municipal Council with an annual report by December 31 of each year identifying:

(1) Names and number of contracts entered into.

(2) The amount of said contracts.

(3) The property addresses for such contracts.

(4) Any additional requested information by the Municipal Council.

5. City of Newark Neighborhood Rehabilitation Program.

(a) Establishment. The Division of Housing Assistance is authorized to establish a City Neighborhood Rehabilitation Program. The selection criteria and regulations for participation in the program by qualifying homeowner occupants shall be consistent with all terms, rules, and regulations established by the City of Newark's Department of Economic and Housing Development and the U.S. Department of Housing and Urban Development (HUD). Funding of this program is subject to the availability of funds.

(1) Summary of Program. Any residential owner-occupied structure consisting of one to three dwelling units, and located in the City of Newark is eligible for participation in the Neighborhood Rehabilitation Program (NRP). Mixed use or nonresidential buildings are not eligible for treatment in this program.

(b) Type of Applicants. The applicant must be an owner/occupant of a residential property in the City of Newark and the household must meet the HUD definition of a low/moderate income household. (The definition of very-low and low income household is a household with an income that does not exceed 80% of the median income for Essex County.)

Eligible participants must be the owner(s) of record at the time of application submission. For-profit corporations, nonprofit corporations, partnerships, etc., are ineligible for participation in this program.

(c) Income Verification. Income verification shall be based upon the applicant's current income as reported as "Adjusted Income" on the Federal Income Tax 1040/1040A or addendum award letters or verification from any entities providing fixed income including Social Security, pension, disability or death benefits. "Income" shall be defined as the total combined earnings of all household members. "Household members" mean all persons who share the owner/occupant's dwelling unit.

(d) Types of Financial Assistance and Periods of Affordability.

(1) Periods of Affordability. Assistance to NRP eligible applicants will be funded with HOME Program Funds. Any HOME assisted unit must meet the affordability requirements for not less than the applicable period specified in the table listed below, beginning after project completion. The affordability requirements apply without regard to the term of any loan or mortgage or the transfer of ownership. The City of Newark will insure compliance with its affordability requirements by placing a deed restriction on the treated property. Such deed restriction will remain in effect until the affordability period has been satisfied.

(2)

Amount of Affordability	Control Funds Awarded Period
$0- $14,999	5-Years
$15,000 - $40,000	10-Years
Over $40,000	15-Years

As stated above, HOME-assisted units must be occupied only by households that are eligible low-income families and must meet the following requirements to qualify as affordable housing.

(3) Rent Limitations. HUD provides the following maximum HOME rent limits. The maximum HOME rents are the lesser of:

(i) The fair market rent for existing housing for comparable units in the area as established by HUD under 24 CFR 888.111; or

(ii) A rent that does not exceed 30% of the adjusted income of a family whose annual income equals 65% of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD will include average occupancy per unit and adjusted income assumptions.

(4) Initial Rent Schedule and Utility Allowances. The City of Newark has established monthly allowances for utilities and services (excluding telephone). The DHA must review and approve rents proposed by the owner for units subject to the maximum rent limitations in paragraph c,l or 2 or this subsection. For all units subject to the maximum rent limitations in paragraph c,1 or 2 of this subsection for which the tenant is paying utilities and services, the DHA must ensure rents do not exceed the maximum rent minus the monthly allowances for utilities and services.

(5) Nondiscrimination Against Rental Assistance Subsidy Holders. The owner cannot refuse to lease HOME-assisted units to a certificate or voucher holder under 24 CFR part 982-Section 8 Tenant-Based Assistance: Unified Rule for Tenant-Based Assistance under the Section 8 Rental Certificate Program and the Section 8 Rental Voucher Program or to the holder of a comparable document evidencing participation in a HOME tenant-based rental assistance program because of the status of the prospective tenant as a holder of such certificate, voucher or comparable HOME tenant-based assistance document.

(6) Subsequent Rents During the Affordability Period. The maximum HOME rent limits are recalculated on a periodic basis after HUD determines fair market rents and median incomes. HUD then provides the new maximum HOME rent limits to the City of Newark. Regardless of changes in fair market rents and in median income over time, the HOME rents for a project are not required to be lower than the HOME rent limits for the project in effect at the time of project commitment.

The City of Newark must provide homeowner(s) with information on updated HOME rent limits so that rents may be adjusted (not to exceed the maximum HOME rent limits described above).

Any increase in rents for HOME assisted units is subject to the provisions of outstanding leases, and in any event, the owner must provide tenants of those units not less than 30 days prior written notice before implementing any increase in rents.

(7) Adjustment of HOME Rent Limits.

(i) Changes in fair market rents and in median income over time should be sufficient to maintain the financial viability of a project within the HOME rent limits.

(ii) HUD may adjust the HOME rent limit only if HUD finds that an adjustment is necessary to support the continued financial viability of the project and only by an amount that HUD determines is necessary to maintain continued financial viability of the project. This authority will be used sparingly.

(8) Tenant Income. The income of each .tenant must be determined initially in accordance with 92.203(a)(l)(i). In addition, each year during the period of affordability the homeowner(s) must reexamine each tenant's annual income in accordance with one of the options in 92.203 selected by the City of Newark. A homeowner(s) with an affordability period of 10 years or more who reexamines tenant's annual income through a statement and certification in accordance with 92.203(a)(l)(ii), must examine the income of each tenant, in accordance with 92.203(a)(l)(i), every sixth year of the affordability period. Otherwise, the homeowner(s) who accepts the tenant's statement and certification in accordance with 92.203(a)(l)(ii) is not required to examine the income of tenants in multifamily or single­ family projects unless there is evidence the tenant's written statement failed to completely and accurately state information about the family's size of income.

(9) Over-Income Tenants. HOME-assisted units continue to qualify as affordable housing despite a temporary noncompliance caused by increases in the incomes of existing tenants if actions satisfactory to HUD and the City of Newark are being taken to ensure that all vacancies are filled in accordance with this section until the noncompliance is corrected.

Tenants who no longer qualify as low-income families must pay as rent the lesser of the amount payable by the tenant under State or local law or 30% of the family's adjusted income, except that tenants of HOME-assisted units that have been allocated low-income housing tax credits by a housing credit agency pursuant to section 42 of the Internal Revenue Code of 1986 (26 U.S.C. 42) must pay rent governed by section 42. In addition, in projects that HOME units are designated as floating pursuant to paragraph j, tenants who no longer qualify as low-income are not required to pay as rent an amount that exceeds the market rent for comparable, unassisted units in the neighborhood.

(10) Fixed and Floating HOME Units. In a project containing HOME-assisted and other units, the City of Newark may designate fixed or floating HOME units. This designation must be made at the time of project commitment. Fixed units remain the same throughout the period of affordability. Floating units are changed to maintain conformity with the requirements of this section during the affordability so the total number of housing units meeting the requirements of this section remains the same, and each substituted unit is comparable in terms of size, features, and number of bedrooms to the originally designated HOME­ assisted units.

(11) Tenant and Participant Protections.

(i) Lease. The lease between a tenant and an owner(s) of rental housing assisted with HOME funds must be for not less than one year, unless by mutual agreement between the tenant and the owner(s).

(ii) Prohibited Lease Terms. The lease between the tenant and the owner(s) may not contain any of the provisions listed in CFR 92.253.

(12) Senior Applicants — Amount of Awarded Funds.

(i) $1,000 - $14,999. The applicant(s) will receive a five-year deferred loan. This loan will be prorated over the five-year period. Should the applicant(s) reside in the property for the entire period of affordability, the deferred loan will revert to a grant and the DHA will remove the lien from the property. Should the homeowner(s) sell the property within the affordability period, the prorated balance must be repaid to the City when the property is sold.

Should a senior homeowner(s) receive $15,000 or more, the deferred loan will be prorated over the applicable period of affordability. Should the applicant(s) reside in the property for the entire period of affordability, the deferred loan will revert to a grant and the DHA will remove the lien from the property. Should the homeowner(s) sell the property within the affordability period, the prorated balance must be repaid to the City when the property is sold. Then, the DHA will remove the lien from the property.

(13) Non-Senior Applicants. A non-senior applicant, whose income is less than 80% of the median income for a family in Newark (based on United States Department of Housing and Urban Development (HUD) adjusted home income limits), will be provided a deferred payment loan based on the following:

(i) 

Amount of Awarded Program Funds.

(a) All Dollar Amounts. The applicant(s) will receive a deferred loan for the duration of the period of affordability. This loan will be prorated over the required number of years. Should the homeowner(s) reside in the property for the entire period of affordability, the homeowner(s) must repay the City 50% of the deferred loan at 0% interest. Once the loan balance has been paid to the City of Newark, the DHA will remove the lien from the property. Should the homeowner(s) sell the property within the affordability period, 100% of the deferred loan must be repaid to the City, along with interest (3% simple interest for homeowners that repay upon sale prior to the end of the affordability control period). The lien will remain on the property until payment is received by the City.

(e) Eligibility Requirements. Applicants shall be eligible to participate in the NRP only if they meet the program income eligibility requirements. Municipal property taxes, water bills, mortgage payments and property insurance must be current at the time the applicant(s) apply to this program. A DHA employee shall verify the payment status of each applicant's above-listed accounts with the City, mortgage company and insurance company. These accounts must have a current payment status, or the applicant must have a payment agreement with the City of Newark.

Each applicant must also submit to the DHA a copy of the hazard insurance policy for the subject property. This hazard insurance must state the insurance will remain in full force throughout their participation in the NRP.

(f) Eligibility Criteria for Property Improvements. Rehabilitation under the NRP is restricted to cover building facade treatments and deficiencies that are categorized as Mandatory Code Violations. Mandatory Code Violations are defined as those "defective" systems within a building that jeopardize the health, safety, and welfare of the occupants. The abatement of these items must be deemed necessary, based upon City and State health codes. At least one code violation must exist at the homeowner's property. Facade improvements include exterior painting, window replacement and aluminum siding. The replacement of damaged sidewalks is also an eligible repair item under this NRP.

The Department reserves the final judgment on all items being considered for rehabilitation. Modifications of these rehabilitation guidelines can only be made by the Department of Economic and Housing Development.

(1) Authorization to Enter into Contract. The Director of the Department of Economic and Housing Development, or his designee, is authorized to enter into contracts, execute deeds or other necessary documents for participation in the Neighborhood Rehabilitation Program with eligible Newark homeowner occupants upon their demonstration of compliance with all terms and regulations established by the Department of Economic and Housing Development and the City of Newark. All contracts shall be attested by the City Clerk and approved as to form and legality by the Corporation Counsel.

(2) Annual Report to Council. The Director of the Department of Economic and Housing Development shall provide the Municipal Council with an annual report by December 31 of each year identifying:

(i) Names and number of contracts entered into.

(ii) The amount of said contracts.

(iii) The property addresses for such contracts.

(iv) Any additional requested information by the Municipal Council.

6. Federal HOME and ADDI Programs.

(a) Establishment. The Division of Housing Assistance is authorized to establish City of Newark Federal HOME and ADDI Programs. The selection criteria and regulations for participation in these programs by qualifying homebuyers shall be consistent with all terms, rules, and regulations established by the Federal Government and the Department of Economic and Housing Development. Funding of these programs is subject to the availability of funds.

(b) Authorization to Enter into Contract. The Director of the Department of Economic and Housing Development, or his designee, is authorized to enter into contracts, execute deeds or other necessary documents for participation in City HOME and ADDI Programs with qualified first-time homebuyers upon their demonstration of financial capability and compliance with all other terms and regulations established by the Department of Economic and Housing Development. All contracts shall be attested by the City Clerk and approved as to form and legality by the Corporation Counsel. For HOME Program funds, Municipal Council approval and execution of an Affordable Housing Agreement (i.e., a declaration of covenants, conditions and restrictions of the HOME Program) between the project sponsor/developer and the Mayor and the Director of the Department of Economic and Housing Development shall be a precondition of any authorization to enter into contracts or other necessary documents with qualified first-time homebuyers.

(c) Annual Report to Council. The Director of the Department of Economic and Housing Development shall prepare an annual report by December 31 of each year identifying:

(1) Names and number of contracts entered into.

(2) The amount of said contracts.

(3) The property addresses for such contracts.

(4) Any additional requested information by the Municipal Council.

§ 2:10-1.2A through 2:10-1.2B. (Reserved) [1]

[1] Editor's Note: Former subsections 2:10-1.2A, Minimum Price for the Sale of City-Owned Real Estate and 2:10-1.2B, Exceptions for Environmental Remediation, previously codified herein and containing portions of Ordinance No. 6 S+FB, 5-21-2003 were repealed in their entirety by Ordinance No. 6 S+FH, 4-7-2004.

§ 2:10-1.3 Division of Economic Development; Head; Duties.

[Ord. 6 S+FE (S), 9-16-1998 § 5]

a. There shall be within the Department of Economic and Housing Development, a Division of Economic Development, the head of which shall be the Manager, Division of Economic Development.

b. The Division of Economic Development, under the supervision of the Director of Economic and Housing Development, shall have the following duties:

1. Administer all programs established by the City to encourage the construction, reconstruction or rehabilitation of commercial and industrial property.

2. Provide such other assistance as is proper and necessary to permit and encourage the development of real property for commercial and industrial purposes in a manner which is consistent with general law and local ordinance.

3.

(a) The Division of Economic Development is authorized to establish the "Revolving Loan Program". The selection criteria and regulations for participants in either program shall be established by the Division. A copy of the regulations and any subsequent amendments thereto shall be placed on file with the City Clerk by the Manager of the Division.

(b) Authorization to Enter Into Contract. The Director of the Department of Economic and Housing Development is authorized to enter into contracts with qualified borrowers upon their demonstration of financial capability and compliance with all other terms and regulations established by the Division of Economic Development. The contracts shall be attested by the City Clerk and approved as to legality and form by the Corporation Counsel.

(c) Annual Report to Council. The Director of the Department of Economic and Housing Development shall provide the Municipal Council with an annual report identifying:

(1) The number of loans made;

(2) The amount of the loans;

(3) The areas and types of businesses provided such loans; and

(4) The number of minority benefits for such loans.

4. Monitor adherence to the contractual terms between the Newark Urban Enterprise Zone and the N.J. Urban Enterprise Zone Authority, and to establish and maintain a financial management system consistent with the contract.

§ 2:10-1.4 Division of Property Management; Head; Duties.

[Ord. 6 S+FE(S), 9-16-1998; Ord. 6 PSF-B, 11-1-2017]

a. There shall be within the Department of Economic and Housing Development a Division of Property Management, the head of which shall be the Manager, Division of Property Management.

b. The Division of Property Management, under the supervision of the Deputy Mayor/Director of the Department of Economic and Housing Development shall have the following duties:

1. Maintain a complete registry of all real property owned by the City, including information as to its use and condition, as well as on leaseholds and other encumbrances thereon.

2. Manage the maintenance and operation of all real property owned by the City which is not needed for Municipal use.

3. Recommend, within the scope of general law, local ordinance, and administrative policy, those properties to be offered for sale or lease and the terms and conditions of such offerings.

4. Conduct the administrative process necessary to carry out the sale or lease of real property where such has been duly authorized.

5. Serve as the redevelopment agency for the City, and in so doing discharge the duties thereof.

6.

(a) Pursuant to P.L. 1988, Chapter 584, there is hereby established within the Division of Property Management an "Urban Homestead Program." The Division is designated as the Homesteading Agency to administer the program. The selection criteria and regulations for participation in the program shall be established by the Division. A copy of the regulations and any subsequent amendments thereto shall be placed on file with the City Clerk by the Manager of the Division of Property Management.

(b) Minimum Requirements of the Program:

(1) The minimum purchase price shall be $500 and the maximum purchase price shall be $5,000.

(2) Buyers must be Newark residents and must commit to reside in the properties for a minimum of seven years.

(3) Rehabilitation of the property must commence within three months after acquiring title and all work must be completed within 12 months thereafter.

(4) Selection shall be on a first come first-serve basis (limited to 12 applicants per property). Only one property may be submitted at a time by an applicant.

(5) The applicant shall as part of their application submit three independent appraisals from general contractors outlining the rehabilitation cost and work required in order to bring the property into conformance with all applicable State and local codes.

(6) Title to the property shall revert back to the City of Newark in the event the purchaser fails to close title, commence or complete the rehabilitation within the time periods, meet the residence requirements, and fulfill the work required in the appraisal selected by the Division of Property Management.

(7) All conveyances shall be accomplished through a contract sale which contract shall be approved by the Municipal Council.

(8) The Division shall have the responsibility for monitoring the properties to ensure compliance with the provisions of this Section 2:10-1.4.

(9) 

The applicant shall submit proof of acquisition financing and shall demonstrate the financial means to repair and/or rehabilitate the property. Proof of financial capability shall include, but not be limited to, the purchaser's own personal finances, a bank loan, and a commitment from lender to finance construction sufficient to bring the property up to City code standards.

i. Source of Rehabilitation Funds: Personal, bank, mortgage company, State or other financial sources. Basic eligibility determined by gross annual household income to participate in the Homestead Rehabilitation Program. Income includes, but is not limited to, salary, wages, alimony, social security benefits, pension, business income and actual or imputed earning assets which include bank accounts, stocks, bonds or other securities.

ii. Source of Financing Acquisition of Property: Must demonstrate ability to acquire property through savings accounts or other liquid assets.

(10) All other provisions of the rules and regulations promulgated by the Division of Property Management shall be consistent with the provisions of P.L. 1988, Chapter 584.

§ 2:10-1.4A Abandoned Property Rehabilitation Act. [1]

[Ord. 6 SF-C, 11-22-2010]

a. Definitions.

1. ABANDONED PROPERTY (CRITERIA PURSUANT TO N.J.S.A. 55:19-83) — Shall mean any property that is determined to be abandoned pursuant to P.L. 2003, c. 210 (N.J.S.A. 55:19-78 et al.) as follows:

Property must not have been legally occupied for six months and must meet any one of the criteria in subsection a,1(a) through (d) in this section.

(a) 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.

(b) Construction was initiated and 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 determination that the building is abandoned.

(c) At least one installment of property tax remains unpaid and delinquent as of the date of determination.

(d) The property has been determined to be a nuisance by the public officer as defined in this section.

2. Exceptions to abandoned property.

(a) A property on which an entity other than the municipality holds a tax sale certificate is not deemed to be abandoned if the owner of the certificate (1) continues to pay all municipal taxes and liens when due; and (2) initiates foreclosure proceedings within six months after the property is eligible for foreclosure.

(b) A property used on a seasonal basis is deemed to be abandoned only if it meets any two of the criteria listed in paragraphs 1.(a) through (d) above.

3. CITY — Shall mean the City of Newark.

4. DEPARTMENT — Shall mean the New Jersey Department of Community Affairs.

5. LIEN HOLDER OR MORTGAGE HOLDER — Shall mean any person or entity holding a note, mortgage or other interest secured by the building or any part thereof.

6. NUISANCE (CRITERIA PURSUANT TO N.J.S.A. 55:19-82) — Shall mean any property that is determined by the public officer to be a nuisance if any one of the following applies:

(a) The property is found to be unfit for human habitation, occupancy or use pursuant to N.J.S.A. 40:48-2.3.

(b) The condition and vacancy of the property materially increases the risk of fire to the property and adjacent properties.

(c) 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.

(d) The presence of vermin or the accumulation of debris, uncut vegetation or physical deterioration of the structure or grounds have created potential health and safety hazards and the owner has failed to take reasonable and necessary measures to remove the hazards; or

(e) The dilapidated appearance or other condition of the property materially affects 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.

7. OWNER — Shall mean the holder or holders of title to an abandoned property.

8. PUBLIC OFFICER — Shall mean a person designated by the Mayor and who is authorized and directed to identify abandoned properties within the City of Newark, place said properties on an abandoned property list established as provided in Section 36 of P.L. 1996, c.62 (N.J.S.A. 55:19-55), as amended by Section 28 of P.L. 2003, c. 210.

9. QUALIFIED REHABILITATION ENTITY — Shall mean 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 set forth in P.L. 2003, c.10 (N.J.S.A. 55:19-78 et al.) to carry out the rehabilitation of vacant buildings in urban areas.

b. Inventory of Abandoned Property; List to be Maintained; Publication in Official Newspaper; Notice to Owner of Record; Challenge by Owner (from N.J.S.A. 55:19-55). The City may direct the public officer to identify abandoned property for the purpose of establishing an abandoned property list throughout the City, or within those parts of the City the Governing Body may designate. Each item of abandoned property so identified shall include the tax block and lot number, the name of the owner of record, if known, and the street address of the lot.

1. The public officer shall establish and maintain a list of abandoned property, to be known as the "abandoned property list." The City may add properties to the abandoned property list at any time, and may delete properties at any time when the public officer finds that the property no longer meets the definition of an abandoned property. An interested party may request that a property be included on the abandoned property list following that procedure set forth in Section 31 of P.L. 2003, c. 210 (C.55:19-105).

2. An abandoned property shall not be included on the abandoned property list if rehabilitation is being performed in a timely manner, as evidenced by building permits issued and diligent pursuit of rehabilitation work authorized by those permits. A property on which an entity other than the City has purchased or taken assignment from the City of a tax sale certificate which has been placed on the abandoned property list may be removed in accordance with the provisions of Section 29 of P.L. 2003, c. 210 (C.55:19-103).

3. The public officer shall establish the abandoned property list or any additions thereto by publication in the official newspaper of the City of Newark, which publication shall constitute public notice, and, within 10 days after publication, shall send a notice, by certified mail, return receipt requested, and by regular mail, to the owner of record of every property included on the list. The published and mailed notices shall identify property determined to be abandoned setting forth the owner of record, if known, the tax lot and block number and street address. The public officer, in consultation with the Tax Collector, shall also send out a notice by regular and certified mail to any mortgagee, servicing organization, or property tax processing organization that receives a duplicate copy of the tax bill pursuant to subsection d of N.J.S.A. 54:4-64. When the owner of record is not known for a particular property and cannot be ascertained by the exercise of reasonable diligence by the Tax Collector, notice shall not be mailed but instead shall be posted on the property in the manner as provided in Section 5 of P.L. 1942, c.112 (C. 40:48-2.7). The mailed notice shall indicate the factual basis for the public officer's finding that the property is abandoned property as that term is defined in Section 35 of P.L. 1996, c. 62 (C.55:19-54) and the rules and regulations promulgated thereunder, specifying the information relied upon in making such finding. In all cases a copy of the mailed or posted notice shall also be filed by the public officer in the office of the Essex County Clerk or Register of Deeds and Mortgages. This filing shall have the same force and effect as a notice of lis pendens under N.J.S.A. 2A:15-6. The notice shall be indexed by the name of the property owner as defendant and the name of the City as plaintiff, as though an action had been commenced by the City against the owner.

4. An owner or lien holder may challenge the inclusion of his property on the abandoned property list determined pursuant to subsection b,2 of this section by appealing that determination to the public officer within 30 days of the owner's receipt of the certified notice or 40 days from the date upon which the notice was sent. An owner whose identity was not known to the public officer shall have 40 days from the date upon which notice was published or posted, whichever is later, to challenge the conclusion of a property on the abandoned property list. For good cause shown, the public officer shall accept a late filing of an appeal. Within 30 days of receipt of a request for an appeal of the finding contained in the notice pursuant to subsection b,4 of this section, the public officer shall schedule a hearing for redetermination of the matter. Any property included on the list shall be presumed to be abandoned property unless the owner, through the submission of an affidavit or certification by the property owner averring that the property is not abandoned and stating the reasons for such averment, can demonstrate that the property was erroneously included on the list. The affidavit or certification shall be accompanied by supporting documentation; such as but not limited to photographs, and repair invoices, bills and construction contracts. The sole ground for appeal shall be that the property in question is not abandoned property as that term is defined in Section 35 of P.L. 1996, c.62 (C.55:19-54). The public officer shall decide any timely filed appeal within 10 days of the hearing on the appeal and shall promptly, by certified mail, return receipt requested, and by regular mail, notify the property owner of the decision and the reasons therefor.

5. The property owner may challenge an adverse determination of an appeal with the public officer pursuant to subsection b,4 of this section, by instituting, in accordance with the New Jersey Court of Rules, a summary proceeding in the Superior Court, Law Division, sitting in Essex County, which action shall be tried de novo. Such action shall be instituted within 20 days of the date of notice of decision mailed by the public officer pursuant to subsection b,4 of this section. The sole ground for appeal shall be that the property in question is not abandoned property as that term is defined in Section 35 of P.L. 1996, c.62(C.55:19-54). The failure to institute an action of appeal on a timely basis shall constitute a jurisdictional bar to challenging the adverse determination, except that, for good cause shown, the Court may extend the deadline for instituting the action.

6. The public officer shall promptly remove any property from the abandoned property list that has been determined not to be abandoned on appeal.

7. The abandoned property list shall become effective, and the City of Newark shall have the right to pursue any legal remedy with respect to properties on the abandoned property list at such time as any one property has been placed on the list in accordance with the provisions of this section, upon the expiration of the period for appeal with respect to the property or upon the denial of an appeal brought by the property owner.

c. Sale of Tax Lien on Abandoned Property; Remediation Costs (Pursuant to N.J.S.A. 55:19-56).

1. Notwithstanding N.J.S.A. 54:5-19 or the provisions of any other law to the contrary, if a property is included on the abandoned property list and the property taxes or other City liens due on the property are delinquent six or more quarters as of the date of expiration of the right to appeal inclusion on the list, or, if an appeal has been filed, as of the date that all opportunities for appeal of inclusion on the list have been exhausted, then the tax lien on the property may be sold in accordance with the procedures in the "tax sale law," N.J.S.A. 54:5-1 et seq., on or after the 90th day following the expiration of that time of appeal or final determination on an appeal, as appropriate. The City may, at its option, require that the sale of the tax sale certificate or any subsequent assignment or transfer of a tax sale certificate held by the City be subject to the express condition that the purchaser or assignee shall be obliged to perform and conclude any rehabilitation or repairs necessary to remove the property from the abandoned property list pursuant to Section 36 of P.L. 1996, c.62 (C.55-19-55) and to post a bond in favor of the City to guarantee the rehabilitation or repair of the property. The public officer may waive a requirement to post a bond imposed by the City for any purchaser, assignee or transferee of a tax sale certificate that provides documentation acceptable to the public officer that the purchaser, assignee or transferee is a qualified rehabilitation entity as defined in Section 3 of P.L. 2003, c. 210 (C.55:19-80). The cost of rehabilitation and repairs and the cost of the bond shall be added to the amount required to be paid by the owner for redemption of the property. The purchaser, assignee or transferee of the tax sale certificate who is required to rehabilitate and repair the property shall be required to file the appropriate affidavits with the Tax Collector, pursuant to N.J.S.A. 54:5-62, representing the amounts of monies expended periodically toward the rehabilitation or repair of the property. A purchaser, assignee or transferee shall be entitled to interest on the amounts expended, as set forth in the affidavits, at the delinquent rate of interest for delinquencies in excess of $1,500 pursuant to N.J.S.A. 54:4-67 of the City of Newark in effect for the time period when the amounts were expended. The tax sale certificate purchaser, assignee or transferee, under the auspices and with the authority of the City, shall be permitted to enter in and upon the property for the purposes of appraising the costs of rehabilitation and repair and to perform all other acts required to guarantee the completion of the rehabilitation or repair of the property. No rehabilitation or repair work shall be commenced, however, until proof of adequate liability insurance and an indemnification agreement holding the City of Newark harmless is filed with the public officer. If the tax sale certificate is not purchased at the initial auction of the tax sale certificate and the City of Newark purchases the certificate pursuant to N.J.S.A. 54:5-34, then the City of Newark is authorized and empowered to convey and transfer to the authority or any of its subsidiaries, without receiving compensation therefor, all of its right, title and interest in that certificate; however, any portion of the amount paid to the Tax Collector to redeem the tax sale certificate that represents tax or other City lien delinquencies and subsequent City liens, including interest, shall be returned by the Tax Collector of the City.

2.

(a) If the City of Newark or the authority or its subsidiaries acquires the tax sale certificate for a property on the abandoned property list, then, upon 10 days' written notice to the property owner and any mortgagee as of the date of the filing of the lis pendens notice under subsection d of Section 36 of P.L. 1996, c.62 (C.55:19-55), that entity shall be permitted to enter upon the property and remediate any conditions that caused the property to be included on the abandoned property list. No remediation shall be commenced, however, if within that ten-day period the owner or mortgagee shall have notified the City of Newark or authority or its subsidiary, as appropriate, in writing that the owner or mortgagee has elected to perform the remediation itself. When the owner or mortgagee elects to perform the remediation itself, it shall be required to post bond in favor of the City of Newark or authority or its subsidiaries, as appropriate, in order to ensure performance. The amount and conditions of the bond shall be determined by the public officer.

(b) The cost of remediation incurred by the City of Newark or the authority or its subsidiaries pursuant to this subsection c,2, as so certified by the entity incurring the cost upon completion of the remediation, shall constitute a lien upon the property first in time and right to any other lien, whether the other lien was filed prior to, or after the filing of any lien by the City of Newark or the authority, except for City taxes, liens and assessments and any lien imposed pursuant to the "Spill Compensation and Control Act:", P.L. 1976, c. 141 (C.58:10-23.11 et seq.), together with any interest thereon. The certification of cost shall be filed and recorded as a lien by the entity incurring the cost with the Essex County Clerk or Register of Deeds and Mortgages.

3.

(a) Failure of an owner or lienholder to remove a property from the abandoned property list within the period of time for appeal of inclusion of the property on the list pursuant to subsection e of Section 36 of P.L. 1996, c. 62 (C.55:19-55), shall be prima facie evidence of the intent of the owner to continue to maintain the property as abandoned property.

(b) The clearance, development, redevelopment, or repair of property being maintained as an abandoned property pursuant to subsection c,3(a) of this section shall be a public purpose and public use for which the power of eminent domain may be exercised.

d. Removal of Property from List of Abandoned Properties; Remediation (from N.J.S.A. 55:19-57).

1. An owner may remove property from the list of abandoned properties prior to sale of the tax sale certificate by paying all taxes and City liens due, including interest and penalties and:

(a) By posting cash or a bond equal to the cost of remediating all conditions because of which the property has been determined to be abandoned pursuant to Section 36 of P.L. 1996, c. 62 (C.55:19-55) and posting cash or a bond to cover the cost of any environmental cleanup required on the property, evidenced by a certification by a licensed engineer retained by the owner and reviewed and approved by the public officer stating that the cash or bond adequately covers the cost of the cleanup; or

(b) By demonstrating to the satisfaction of the public officer that the conditions rendering the property abandoned have been remediated in full; provided, however, that where the public officer finds that the owner is actively engaged in remediating the conditions because of which the property was determined to be abandoned pursuant to Section 36 of P.L. 1996, c. 62 (C.55:19-55), as evidenced by significant rehabilitation activity on the property, the public officer may grant an extension of time of not more than 120 days for the owner to complete all work, during which time no further proceedings will be taken against the owner or the property.

2. If the owner has posted cash or a bond in order to have a property removed from the abandoned property list and the conditions because of which the property was determined to be abandoned have not been fully remediated within one year of the date of posting the cash or bond, or, in the case of a property which requires a remediation of any known, suspected or threatened release of contaminants, if the owner has failed to enter into a memorandum of agreement with the Department of Environmental Protection or an administrative consent order, as the case may be, or if an agreement or order is in effect but the owner has failed to perform the remediation in conformance with the agreement of order, then the cash or bond shall be forfeited to the City which shall use the cash or bond and any interest which has accrued thereon for the purpose of demolishing or rehabilitating the property or performing the environmental remediation. Any funds remaining after the property has been demolished, rehabilitated or cleaned up shall be returned to the owner.

e. Acquisition of Tax Sale Certificate for Abandoned Property; Action to Foreclose Right of Redemption (from N.J.S.A. 55:19-58).

1. When a person other than the City of Newark or the authority or its subsidiaries acquires a tax sale certificate for a property on the abandoned property list at tax sale, the purchaser may institute an action to foreclose the right of redemption at any time after the expiration of six months following the date of the sale of the tax sale certificate.

2. When the City of Newark is the purchaser at tax sale of any property on the abandoned property list pursuant to N.J.S.A. 54:5-34, or when the authority or any of its subsidiaries acquires the tax sale certificate pursuant to subsection a of Section 37 of P.L. 1996, c. 62 (C.54:5-104.34), inaction to foreclose the right of redemption may be instituted in accordance with the provisions of subsection b of N.J.S.A. 54:5-77.

3. After the foreclosure action is instituted, the right to redeem shall exist and continue to exist until barred by the judgment of the Superior Court; provided, however, that no redemption shall be permitted except where the owner:

(a) Posts cash or bond equal to the cost of remediating the conditions because of which the property was determined to be abandoned pursuant to Section 36 of P.L. 1996, c. 62 (C. 55:19-56), as determined by the Court; or

(b) Demonstrates to the Court that the conditions because of which the property was determined to be abandoned pursuant to Section 36 of P.L. 1996, c. 62 (C. 55:19-56) have been remedied in full.

f. Entry of Final Judgment Barring Right of Redemption; Grounds for Reopening Judgment (from N.J.S.A. 55:19-59). Once a final judgment barring the right of redemption with respect to a property on the list of abandoned properties has been recorded, no Court shall reopen such judgment at any time except on the grounds of lack of jurisdiction or fraud in the conduct of the action; in any such proceeding, the provisions of P.L.1996, c. 62 (C. 55:19 et al.) shall be construed liberally in favor of the purchaser, assignee or transferee of the tax sale certificate.

g. Property Deemed not Abandoned; Criteria; Certification of Abandonment Provided Upon Request (N.J.S.A.).

1. If an entity other than the City of Newark has purchased or taken assignment from the City 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 pursuant to section 36 of P.L. 1996, c. 62 (C.55:19-55) if (1) the owner of the certificate has continued to pay all City of Newark 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.

2. 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 Section 4 of P.L. 2003, c. 210 (C.55:19-81).

3. A determination that a property is abandoned property under the provision of P.L. 2003, c. 210 (C.55:19-78 et al.) shall not constitute a finding that the use of the property has been abandoned for purposes of municipal zoning or land use regulation.

4. 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 Section 4 and 5 of P.L. 2003, c. 210 (C.55:19-81 and C.55:19-82).

h. Transfer of Possession and Control of Abandoned Property (N.J.S.A. 55:19-84). A summary action or otherwise to transfer possession and control of abandoned property in need of rehabilitation to the City of Newark may be brought by the City of Newark in the Superior Court in Essex County. If the Court shall find that the property is abandoned pursuant to Section 4 of P.L. 2003, c. 210 (55:19-81) and the owner or party in interest has failed to submit and initiate a rehabilitation plan, then the Court may authorize the City of Newark to take possession and control of the property and develop a rehabilitation plan.

The City of Newark 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 Section 15 of P.L. 2001 c.210 (C.55:19-92).

Failure by the owner, mortgage holder or lien holder to submit plans for rehabilitation to the City of Newark, 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.

i. Filing of Complaint; Required Information (N.J.S.A. 55:19-85). A complaint filed pursuant to Section 7 of P.L. 2003, c. 210 (C.55:19-84) shall include:

1. Documentation that the property is on the municipal abandoned property list or a certification by the public officer that the property is abandoned; and

2. 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.

j. Filing of Complaint; Notice Requirements; Entry to Secure, Stabilize, Repair or Inspect the Property (N.J.S.A. 55:19-86).

1. Within 10 days of filing a complaint pursuant to P.L. 2003, c.210 (C.55:19-78 et al.), the plaintiff shall file a notice of lis pendens with the County of Essex recording officer.

2. At least 30 days before filing the complaint, the City of Newark 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 Section 4 of P.L. 2002, c.210 (C.55:19-81).

The notice shall provide that unless the owner or a party in interest prepares and submits a rehabilitation plan to the appropriate City of Newark official, the City will seek to gain possession of the building to rehabilitate the property and the associated costs 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 Section 16 of P.L. 2003, C.210 (C.66:19-92).

After the complaint is filed, the complaint shall be served on the parties in interest in accordance with the New Jersey Rules of Court.

3. After serving the notice of intent pursuant to paragraph j,2 of this section, the City of Newark 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 Section 12 of P.L. 2003, c. 210 (C.55:19-89).

k. Property Owner, Defense Against Complaint; Requirement (N.J.S.A. 55:19-87).

1. Any owner may defend against a complaint filed pursuant to Section 7 of P.L. 2003, c. 210 (C.55:19-84) 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.

2. A plan submitted by an owner pursuant to this subsection k shall include, but not be limited to:

(a) 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;

(b) 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;

(c) 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

(d) 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.

3.

(a) 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.

(b) 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 City may apply to the Court to have the owner's bond forfeited, possession of the building transferred to the City to complete the rehabilitation plan and authorization to use the bond proceeds for rehabilitation of the property.

(c) The owner shall provide quarterly reports to the City 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.

4. 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.

l. Owner Unsuccessful in Defending Against Complaint; Mortgage or Lien Holders to be Designated in Possession of Property (N.J.SA.55:1988).

1. If an owner is unsuccessful in defending against a complaint filed pursuant to Section 7 of P.L. 2003, c.210 (C.55:19-84), the mortgage holder or lien holder 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 Section 10 of P.L. 2003, c. 210 (C55:19-87). 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 lien holder with an extension of time for good cause shown. If the Court approves any such mortgage holder or lien holder'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.

The mortgage holder or lien holder, as the case may be, shall provide quarterly reports to the Court and the City on its activities and progress toward rehabilitation and reuse of the property.

If the mortgage holder or lien holder 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 City possession of the property, and authorize the City to use the proceeds of the bond for rehabilitation of the property.

2. Any sums incurred or advanced for the purpose of rehabilitating the property by a mortgage holder or lien holder granted possession of a property pursuant to subsection l, 1 of this section, including Court costs and reasonable attorney's fees, may be added to the unpaid balance due that mortgage holder or lien holder, with the interest calculated at the same rate set forth in the note or security agreement; or, in the case of a tax lien holder, at the statutory interest rate for subsequent liens.

m. City of Newark to be Designated in Possession of Property; Submission of Plan to Court (N.J.S.A. 55:19-89). If no mortgage holder or lien holder meets the conditions of Section 11 of P.L. 2003, c.210 (C.55:19-88), then the City shall submit a plan to the Court which conforms with the provisions of subsection b of Section 10 of P.L. 2003, c. 210 (C.55:19-87). The plan shall designate the entity which shall implement the plan, which may be the City or that entity designated in accordance with the provisions of Section 13 P.L. 2003, c. 210 (C.55:19-90).

The Court shall grant the City possession of the property if it finds that:

1. The proposed rehabilitation and reuse of the property is appropriate and beneficial;

2. The City is qualified to undertake the rehabilitation and reuse of the property; and

3. The plan submitted by the City represents a realistic and timely plan for the rehabilitation and reuse of the property.

The City 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 subsection, 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.

Where either a redevelopment plan pursuant to P.L. 1992, c. 79 (C.40A:12-1 et seq.) or a neighborhood revitalization plan pursuant to P.L. 2001, c. 415 (C.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.

n. The City of Newark, Exercise of Rights to Further Rehabilitation and Reuse of Property; Designation of Qualified Rehabilitation Entity (N.J.S.A. 55:19-90). The City may exercise its rights under P.L. 2003, c. 210 (C.55:19-78 et al.) directly, or may designate a qualified rehabilitation entity to act as its designee for the purpose of exercising the City's rights where that designation will further the rehabilitation and reuse of the property consistent with the City's plans and objectives. This designation shall be made by resolution of [the Mayor and] the Council of the City of Newark. The Mayor may delegate this authority to the public officer.

Regardless of whether the City exercises its rights directly or designates a qualified rehabilitation entity pursuant to this section, while in possession of a property pursuant to P.L. 2003, c. 210 (C.55: 19-78 et al.), the City shall maintain, safeguard, and maintain insurance on the property. Notwithstanding the City's possession of the property, nothing in P.L. 2003, c. 210 (C.55:19-78 et al.) 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.

o. The City of Newark Deemed Possessor of Property; Borrowing of Funds; Reporting and Filing Requirements (N.J.S.A. 55:19-91).

1. If the City has been granted possession of a property pursuant to Section 12 of P.L. 2003, c. 210 (C.55:19-89), the City 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.

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 subsection shall be considered legal control of the property.

Notwithstanding the granting of possession to the City, nothing in P.L. 2003, c.210 (C.55:19-78 et al.) 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 City 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.

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.

2. The Court may approve the borrowing of funds by the City 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 (1) the City sought to obtain the necessary financing from the senior lien holder, which the assignment will further the purposes of this section.

3. Where the City has been granted possession by the Court in the name of the City, the City 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: (1) the entity to which the City's rights will be assigned is a qualified rehabilitation entity; and (2) the assignment will further the purposes of this section.

4. Where the City has designated a qualified rehabilitation entity to act on its behalf, the qualified rehabilitation entity shall provide quarterly reports to the City on its activities and progress toward rehabilitation and reuse of the property. The City 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 City or its designee have failed to take diligent action toward rehabilitation of the property within one year from the grant of possession, then the Court may request the City to designate another qualified rehabilitation entity to exercise its rights, or if the City fails to do so, may terminate the order of possession and return the property to its owner.

5. The City shall file a Notice of Completion with the Court, and shall also serve a copy on the owner and any mortgage holder or lien holder, at such time as the City 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.

p. Petition for Reinstatement of Control and Possession by Owner (N.J.S.A. 55:19-92). 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 City 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 City has filed notice.

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 City, or affect any of the terms or conditions under which the City, 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 Section 15 of P.L. 2003, c. 210 (C.55:19-92) shall:

1. Include a plan for completion of the rehabilitation and reuse of the property consistent with the plan previously approved by the court;

2. Provide legally binding assurances that the owner will comply with all conditions of any grant or loan secured by the City or repay those grants or loans in full, at the discretion of the maker of the loan or grant; and

3. Be accompanied by payment equal to the sum of (1) all City liens outstanding on the property; (2) all costs incurred by the City in bringing action with respect to the property; (3) any costs incurred by the City 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.

q. Obligations of Owner Prior to Grant of Petition (N.J.S.A. 55:19-94). Prior to the granting of a petition on the part of the owner by the Court pursuant to Section 15 of P.L. 2003, c. 210 (C.55:19-92), 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 City 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 Section 15 of P.L. 2003, c. 210 (C.55:19-92).

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.

r. Failure of Owner to Petition for Reinstatement of Control and Possession of Property; Granting of Title to the City of Newark; Authority to Sell (N.J.S.A. 55:19-95). 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 Section 15 of P.L. 2003, c. 210 (C.55:19-92), upon petition from the entity in possession, the Court may grant the City title or authorize the City to sell the property, subject to the provisions of Section 19 of P.L. 2003, c. 210 (C.55:9-96).

s. Procedure of City of Newark Seeking to Gain Title to Property; Authorization to Sell; Proceeds (N.J.S.A. 55:19-96).

1. Where the City 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.

The Court may authorize the City 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.

The proceeds of the purchase of the property shall be distributed as set forth in Section 20 of P.L. 2003, c. 210 (C.55:19-97).

2. The City 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.

3. Upon approval by the Court, the City 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 Section 20 of P.L. 2003, c. 210 (C.55:19-97).

t. Distribution of Proceeds (N.J.S.A. 55:19-97). The proceeds paid pursuant to subsection c of Section 19 of P.L.2003, c.210 (C.55:19-96) shall be distributed in the following order of priority:

1. The costs and expenses of sale;

2. Other governmental liens;

3. Repayment of principal and interest on any borrowing or indebtedness incurred by the City and granted priority lien status pursuant to subsection a of Section 21 of P.L. 2003, c. 210 (C.55:19-98);

4. A reasonable development fee to the City 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;

5. Other valid liens and security interests, in accordance with their priority; and

6. The owner.

u. Public Officer; Authority to Place Lien on Property; Remedies (N.J.S.A. 55:19-98).

1. The public officer, with the approval of the Court, may place a lien on the property to cover any costs of the City in connection with a proceeding under P.L. 2003, c. 210 (C.55:19-78 et al.) incurred prior to the grant by the Court of an order of possession under P.L. 2003, c. 210 (C.55:19-78 et al.) 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 City lien for the purposes of N.J.S.A. 54:5-9 with the rights and status of a City lien pursuant thereto.

2. With the exception of the holding of special tax sales pursuant to Section 24 of P.L. 2003, c. 210 (C.55:19-101), the remedies available under P.L. 2003, c. 210 (C. 55:19-78 et al.) shall be available to the City with respect to any abandoned property, whether or not the City has established an abandoned property list as provided in Section 36 of P.L. 1996, c. 62 (C.55:19-55) and whether or not the property has been included on any such list.

v. Court's Denial of Rights and Remedies to Lien Holders and Mortgage Holders (N.J.S.A. 55:19-99). Notwithstanding any provision to the contrary in P.L. 2003, c. 210 (C.55:19-78 et al.), a Court may in its discretion deny a lien holder or mortgage holder of any or all rights or remedies afforded lien holders and mortgage holders under P.L. 2003, c. 210 (C.55:19-78 et al.), if the Court finds that the owner of a property subject to any of the provisions of P.L. 2003, c. 210 (C.55:19-78 et al.) owns or controls more than a 50% interest in, or effective control of the lien holder or mortgage holder or that the familial or business relationship between the lien holder or mortgage holder and the owner precludes a separate interest on the part of the lien holder or mortgage holder.

w. Recourse of the City of Newark Against Individuals or Corporations (N.J.S.A. 55:19-100). 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 (C. 40:48-2.3 or C.40:48-2.5) or section 1 of P.L. 1989, c. 91 (C.40:48-2.3a) or any receiver's lien pursuant to P.L.2003, c. 295 (C.2.A:42-114 et al.) the City 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 public officer, with the approval of the Court, may place a lien on the property to cover any costs of the City in connection with a proceeding under P.L. 2003, c.210 (C.55:19-78 et al.) incurred prior to the grant by the Court of an order of possession under P.L. 2003, c. 210 (C.55:19-78 et al.), 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 City lien for the purposes of N.J.S.A. 54:5-9 with the rights and status of a City lien pursuant thereto.

With the exception of the holding of special tax sales pursuant to Section 24 of P.L. 2003, c. 210 (C.55:19-101, the remedies available under P.L. 2003, c. 210 (C.55:19-78) et al.) shall be available to the City with respect to any abandoned property, whether or not the City has established an abandoned property list as provided in Section 36 of P.L. 1996, c. 62 (C.55:19-55) and whether or not the property has been included on any such list.

x. Court's Denial of Rights and Remedies to Lien Holders and Mortgage Holders (N.J.S.A. 55:19-99). Notwithstanding any provision to the contrary in P.L. 2003, c. 210 (C.55:19-78 et al.), 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 P.L. 2003, c. 210 (C.55:19-78 et al.), if the court finds that the owner of a property subject to any of the provisions of P.L. 2003, c. 210 (C.55:19-78 et al.) 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.

y. Recourse of City of Newark Against Individuals or Corporations (N.J.S.A. 55:19-100). 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 (C.40:48-2.3 or C.40:48-2.5) or Section 1 of P.L. 1989, c. 91 (C.40:48-2.3a) or any receiver's lien pursuant to P.L. 2003, c. 295 (C.2A:42-114 et al.), the City 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.

z. Properties Eligible for Tax Sales; City of Newark Requirements of Municipalities; Notice (N.J.S.A. 55:19-101). The City 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 City pursuant to Section 36 of P.L. 1996, c. (C.55:19-55). If the City elects to hold a special tax sale shall conduct that sale subject to following provisions:

1. The City 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 the City's 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 City 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;

2. The City 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 City, in order to ensure that the properties to be sold will be rehabilitated or otherwise reused in a manner consistent with the public interest;

3. The City 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;

4. The City 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 z,4 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 thereto acquired by the purchaser shall revert to the City, and any amount paid by the purchaser to the City at the special tax sale shall be forfeited to the City;

5. In the event there are two or more qualified bidders for any property or bid package in a special tax sale, the City may designate the unsuccessful but qualified bidder whose bid was closest to the successful bid as an eligible purchaser;

6. In the event that the purchaser of that property or bid package fails to meet any of the conditions of sale established by the City pursuant to this section, and their interest in the property or properties revert to the City, the City 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.

7. The City 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 City pursuant to subsection z, 2, 3, or 4 of this section. Nothing shall prohibit the City from holding a special tax sale on the same day as a standard or accelerated tax sale.

aa. Eminent Domain Proceedings; Establishment of Fair Market Value (N.J.S.A. 55:19-102). With respect to any eminent domain proceeding carried out under Section 37 of P.L. 1996, c. 62 (C.55:19-56), the fair market value of the property shall be established on the basis of an analysis which determines independently:

1. 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;

2. 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 City in which the property is located; and

3. 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.

bb. Removal of Property from Abandoned Property List (N.J.S.A. 55:19-103). If a property, which an entity other than the City has purchased or taken assignment from the City 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 the City's 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.

cc. Request for Property to be Placed on Abandoned Property List (N.J.S.A. 55:19-105).

1. 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 (C.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 paragraph, "interested party" shall include any resident of the City, any owner or operator of a business within the City 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.

2. Any interested party may participate in any redetermination hearing held by the public officer pursuant to subsection e. of Section 36 of P.L. 1996, c. 62 (C.55:19-55). 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.

[1] Editor's Note: Ordinance 6 PSF-F, 11-4-2010 was vetoed by Mayor on November 18, 2010 together with statement setting forth his objection as the enactment of ordinance being redundant and unnecessary due to the mandatory requirements of N.J.S.A. 55:19-78 et seq. The veto was overridden and the ordinance readopted as Ordinance No. 6 SF-C, 11-22-2010 and is codified herein.

This section modifies the New Jersey Statutes only for the purpose of order and context. All substantive rights and obligations are preserved.

§ 2:10-1.4B Abandoned Property List in the City of Newark.

[Ord. 6 S+FC, 3-21-2007]

a. Purpose. The City of Newark contains a large number of vacant buildings that have been abandoned by their owners, and that are in a state of disrepair and neglect.

These buildings, by virtue of their condition and their proximity to other buildings, are diminishing the value of neighboring properties and have a negative effect on the quality of life of adjacent residents and property owners, increasing the risk of property damage through arson and vandalism and discouraging neighborhood stability and revitalization.

Many of these buildings, or the land on which they are situated, can be used for productive purposes, which will further the revitalization of the City of Newark and improve its economic and social condition.

The City of Newark desires to use the powers granted local governments under the laws of the State of New Jersey to address the conditions created by these buildings and further their reuse for productive purposes.

By creating an abandoned property list, as set forth in Section 36 of P.L. 1996, c.62 (C.55:19-55) as amended by Section 28 of P.L. 2003, c.210, the municipality will better be able to address the conditions created by these buildings and further their reuse for productive purposes.

b. The public officer designated by the Mayor is hereby authorized and directed to identify abandoned properties within the municipality, place said properties on an abandoned property list established as provided in Section 36 of P.L. 1996, c.62 (C.55:19-55), as amended by Section 28 of P.L. 2003, c.210, and provide such notices and carry out such other tasks as are required to effectuate an abandoned property list as provided by law.

c. The abandoned property list shall apply to the City of Newark as a whole.

d. The public officer shall provide a report to the Mayor and Governing Body annually, with respect to the number and location of properties on the abandoned property list, the status of those properties, and any actions taken by the municipality or by any qualified rehabilitation entity designated pursuant to the authority granted the public officer with respect to any property on the list or any other abandoned property within the City of Newark.

§ 2:10-1.4C City of Newark Senior Homeowner Emergency Repair Program.

§ 2:10-1.4C.1 Establishment and Summary of Program.

[Ord. 6 S+FM, 10-1-2008 § 1A]

The Department of Economic and Housing Development is authorized to establish and administer a Senior Homeowner Emergency Repair Program (the "Program"). The following is a summary of the Program:

a. Senior citizens aged 62 years or older and disabled persons receiving Social Security Insurance (SSI) or Social Security Disability Insurance (SSDI) that own and occupy a residential structure consisting of one to three dwelling units and who are very low income, as that term is defined by the Council on Affordable Housing.

("COAH"), will be eligible for the Senior Homeowner Emergency Repair Program. Program applicants must meet asset limitation tests to be eligible.

b. The home must be located in the City of Newark and in need of repairs to abate code violations or to address health and safety conditions. Nonresidential buildings are not eligible for participation in this program.

c. Program funds provided by the City will be made available in the form of a deferred loan. Deferred loans shall be for the cost of repairs or improvements, not to exceed $20,000 per residential unit and $60,000 per structure.

d. The repairs and improvements will be prioritized by the Division of Housing and Real Estate[1] based on the health and safety needs of the property.

[1] Editor's Note: See Section 2:10-1.4, Division of Property Management.

§ 2:10-1.4C.2 Eligibility.

[Ord. 6 S+FM, 10-1-2008 § 1B]

The applicant must be an individual 62 years of age or older on the date of application approval or disabled and receiving Social Security Insurance (SSI) or Social Security Disability Insurance (SSDI) based on the disability. Eligible beneficiaries must meet the COAH definition of very low income at time of application processing. (The definition of very low income is a household with an income that does not exceed 30% of the median income for the region.)

Eligible participants must occupy and be the owner(s) of record at the time of application submission and must have owned the home for no less than two years. Residential properties must consist of one to three residential units. The eligible property must be the only real estate property owned by the applicant. Entities such as for profit corporations, nonprofit corporations, partnerships, etc., are ineligible for participation in this program.

Municipal property taxes, water bills, and sewer bills must be current at the time the applicant(s) apply to this program. These accounts must have a current payment status, or the applicant must have a payment agreement with the City of Newark. In addition, applicants must be current with all mortgage payments or may be ineligible.

§ 2:10-1.4C.3 Income Verification.

[Ord. 6 S+FM, 10-1-2008 § 1C]

Income verification shall be based upon the applicant's current "adjusted income" as reported on the Federal Income Tax 1040/1040A or addendum award letters or verification from any entities providing fixed income including Social Security, Pension, Disability or Death Benefits. "Income" shall be defined as the total combined earnings of all household members. "Household members" mean all persons, 18 years and older, who share the owner/occupant's dwelling unit.

§ 2:10-1.4C.4 Types of Financial Assistance.

[Ord. 6 S+FM, 10-1-2008 § 1D]

Program funds shall not exceed $20,000 per residential unit and $60,000 per property. Program funds provided by the City will be made available in the form of a deferred loan. The deferred loan shall carry no interest. The City funds shall be repaid upon conveyance or transfer of title to an unrelated buyer or in the event that the borrower ceases to occupy the home as the principal residence or otherwise not qualify under the SHERP program.

City funds shall be secured by a mortgage that will be subordinate to any existing mortgage on the property. The City's mortgage shall not automatically be subordinated to any subsequent debt, mortgage refinance, or liens. However, the Division of Housing and Real Estate may authorize subordination to subsequent debt if such debt is used to make additional improvements to the home or if the new mortgage results in lower costs to the homeowner and the fees and charges to the homeowner by the proposed lender are deemed reasonable by the Division of Housing and Real Estate. Subordination to refinance mortgages resulting in "cash out" to the homeowner shall only be authorized if, based on an independent appraisal, the Division of Housing and Real Estate determines that sufficient value remains in the property to secure the City's mortgage.

The Department of Economic and Housing Development shall be authorized to utilize funds from the Community and Economic Development Dedicated Trust Fund No. 026-B/S-3210 established under City Resolution No. 7RG110685 to provide assistance under this Program.

Financial assistance made available by the City may conform to and comply with regulations, restrictions and requirements that may be established by the Council on Affordable Housing (COAH.)

§ 2:10-1.4C.5 Eligibility Criteria for Property Improvements.

[Ord. 6 S+FM, 10-1-2008 § 1E]

The home must be a residential structure containing one to three residential units and must be located in the City of Newark. Nonresidential buildings are not eligible for this program. At least one code violation must exist at the homeowner's property and at least one major building system must be in need of repair or replacement. Repairs shall include, but not be limited to, "defective" systems within a building that jeopardize the health, safety, and welfare of the occupants, facade improvements including exterior painting, window replacement and aluminum siding, as well as immediate grounds improvement.

The Department reserves the final judgment on all items being considered for rehabilitation. Modifications of these rehabilitation guidelines can only be made by the Department of Economic and Housing Development.

§ 2:10-1.4C.6 Authorization to Enter Into Contract.

[Ord. 6 S+FM, 10-1-2008 § 1F]

The Director of the Department of Economic and Housing Development, or his designee, is authorized to enter into contracts and agreements for the implementation of this program in the attached form. In addition, the Deputy Mayor may execute deeds or other necessary documents for participation in the Senior Homeowner Emergency Repair Program with eligible Newark homeowner occupants upon their demonstration of compliance with all terms and regulations established by the Department of Economic and Housing Development. All contracts shall be attested by the City Clerk and approved as to form and legality by the Corporation Counsel.

§ 2:10-1.4C.7 Annual Report to Council.

[Ord. 6 S+FM, 10-1-2008 § 1G]

The Director of the Department of Economic and Housing Development shall provide the Municipal Council with an annual report each year identifying:

a. Names and number of contracts entered into.

b. The amount of said contracts.

c. The property addresses for such contracts.

d. Any additional requested information by the Municipal Council.

§ 2:10-1.4D Lease of City-Owned Vacant Lots for Gardening or Recreational Purposes.

[Ord. 6 PSF-B, 4-7-2010]

a. Authority of Deputy Mayor/Director of Economic and Housing Development to Execute Lease. The Deputy Mayor/Director of Economic and Housing Development of the City of Newark shall have the power to enter into and execute leases of vacant land owned by the City, without advertising or receipt of competitive bids, where such leases are solely for the cultivation or use of such vacant lots for gardening or recreational purposes in accordance with N.J.S.A. 40A:12-15(j). Entry into such leases shall not require the approval of the Municipal Council. All leases entered into pursuant to this section shall be in the form as filed with the City Clerk at the time of adoption of this section. Any change or amendment of such leases must be approved by ordinance of the Municipal Council prior to their use. Any lease entered into pursuant to this section shall be for a term not to exceed 12 months. All leases shall terminate as of December 31 of the year in which they are executed; provided, that leases may be subject to renewal as provided therein. For all leases entered into pursuant to this section, the rent to be charged shall be $1 per term. Each month the Deputy Mayor/Director of Economic and Housing Development or the landlord and/or his designee shall file a report with the City Clerk indicating all such leases entered into during the previous month. In addition, a fully executed copy shall be filed with the City Clerk within seven calendar days after its execution.

§ 2:10-1.4E MAINTENANCE OF VACANT PROPERTIES, REGISTRATION REQUIREMENTS AND FEES.

§ 2:10-1.4E.1 Definitions.

[Ord. 6 PSF-A, 6-2-2011 § 1; Ord. 6 PSF-B, 3-18-2015; amended 10-19-2022 by Ord. No. 6PSF-A, 10-19-2022; 8-13-2024 by Ord. No. 6PSF-A(s), 08-13-2024]

As used in this section:

ABANDONED or VACANT

Shall refer to any Property and/or Commercial Unit and/or Vacant Lot which becomes Dilapidated, Deteriorated, Decayed or Unattractive, or Partially Dilapidated, Deteriorated, Decayed or Unattractive, from any cause, and which is not legally occupied by a mortgagor or tenant or at which substantially all lawful construction operations or occupancy has ceased, and which is in such condition that it cannot legally be reoccupied without repair or rehabilitation, and at which at least two of the following conditions exist:

a. Overgrown or neglected vegetation;

b. The accumulation of 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 materials on the property;

e. The accumulation of junk, litter, trash, or debris on the property;

f. The absence of window treatments such as blinds, curtains, or shutters;

g. The absence of furnishings and personal items;

h. Statements of neighbors, delivery persons, or government employees indicating that the property is vacant and abandoned;

i. Windows or entrances to the property that are boarded up or closed off, or multiple window 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 due to acts of vandalism, loitering, criminal conduct, or the physical destruction or deterioration of the property;

l. 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;

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; or

o. Any other reasonable indicia of abandonment.

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. Property determined to be Abandoned or Vacant shall be construed in accordance with the meaning of "abandoned property" in the Abandoned Properties Rehabilitation Act, N.J.S.A. 55:19-78 et seq., and shall also be deemed to be Vacant Property for the purposes of this section.

COMMERCIAL UNIT

Shall mean any building square footage rented, formerly rented, intended for rental, zoned for rental, approved for rental by the City of Newark, or legally able to be rented under the applicable laws and ordinances of the City of Newark. If any commercial unit exceeds 1,500 square feet, such a unit will be referred to as multiple commercial units with the number being derived from taking the total commercial unit square footage and dividing by 1,500 square feet. Any partial unit shall qualify as an additional unit under this section.

DILAPIDATED, DETERIORATED, DECAYED, OR UNATTRACTIVE

Shall mean any appearance or condition of any real property, building or structure, or part, floor or level thereof, which is not in conformance with the maintenance of other neighboring properties, materially affecting the economic welfare and/or value of neighboring properties, including, but not limited to, exterior conditions, as set forth under Subsections 2:10-1.4E.5 and 2:10-1.4E.6, which the owner has failed to take reasonable or necessary measures to remedy or maintain.

OWNER

Shall include the title holder, any agent of the title holder having authority to act with respect to a vacant property, any foreclosing entity subject to the provisions of C. 46:10B-51 (P.L. 2008, c. 127, Sec. 17), or any other entity determined by the City of Newark to have authority to act with respect to the property.

PARTIAL

Shall mean any part, floor or level of a building or structure, where one part, floor or level is occupied and compliant with this ordinance, but other parts, floors or levels are not.

PROPERTY

Shall mean any vacant lot, real property, building or structure, or any part or parts thereof, commercial or otherwise, within the City of Newark, whether or not owner occupied, and whether or not one or more than one floor or level is unoccupied while one or more than one floor or level is occupied either for commercial or residential use.

VACANT LOT

Shall be defined as a platted or unplatted parcel of land, which does not contain a habitable or commercial structure.

§ 2:10-1.4E.2 General Requirements.

[Ord. 6 PSF-A, 6-2-2011 § 1; Ord. 6PSF-B, 3-18-2015; amended 10-19-2022 by Ord. No. 6PSF-A, 10-19-2022; 8-13-2024 by Ord. No. 6PSF-A(s), 08-13-2024]

a. Effective August 1, 2011, the owner of any Vacant Property (Residential and/or Commercial) and/or Vacant Lot as defined herein shall within 30 days after the building becomes vacant property or within 30 days after assuming ownership of the vacant property, whichever is later, file a registration statement for each such Vacant Property with the Deputy Mayor/Director of the Department of Economic and Housing Development or his/her designee on forms provided by that the Deputy Mayor/Director of the Department of Economic and Housing Development or his/her designee for such purposes. The registration shall remain valid for one year from the date of registration. The owner shall be required to renew the registration annually as long as the building remains Vacant property and shall pay a registration or renewal fee in the amount prescribed in Subsections 2:10-1.4E.4A and 2:10-1.4E.4B for each Vacant Property registered.

b. Any Owner of any building that meets the definition of Vacant Property, which includes Vacant Lot, prior to October 1, 2022, shall file a registration statement for that property on or before October 30, 2022. The registration statement shall include the information required under Subsection 2:10-1.4E.3, as well as any additional information that the Deputy Mayor/Director of the Department of Economic and Housing Development or his/her designee may reasonably require.

c. The Owner shall notify the Deputy Mayor/Director of the Department of Economic and Housing Development or his/her designee within 30 days of any change in the registration information by filing an amended registration statement on a form provided by the Deputy Mayor/Director of the Department of Economic and Housing Development or his/her designee for such purpose.

d. 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 City against the owner or owners of the building.

§ 2:10-1.4E.3 Registration Statement Requirements; Property Inspection.

[Ord. 6 PSF-A, 6-2-2011 § 1; Ord. 6 PSF-B, 3-18-2015; amended 10-19-2022 by Ord. No. 6PSF-A, 10-19-2022]

After filing a registration statement or a renewal of a registration statement, the owner of any vacant property shall provide access to the City to conduct an exterior and interior inspection of the building to determine compliance with the Municipal Code, following reasonable notice, during the period covered by the initial registration or any subsequent renewal.

a. The registration statement shall include the name, street address and telephone number of a natural person 21 years of age or older, designated by the owner or owners as the authorized agent for receiving notices of code violations and for receiving process, in any court proceeding or administrative enforcement proceeding, on behalf of such owner or owners in connection with the enforcement of any applicable code. This person must maintain an office in the State of New Jersey or reside within the State of New Jersey. The statement shall also include the name of the person responsible for maintaining and securing the property, if different. The statement shall include evidence of any liability insurance required by an ordinance adopted pursuant to Subsection 2:10-1.4E.5c.

b. An Owner who is a natural person and who meets the requirements of this section as to location of residence or office may designate him or herself as agent.

c. 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 Vacant Property and all process in any court proceeding or administrative enforcement proceeding brought to enforce code provisions concerning the registered building by service of the notice or 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 Deputy Mayor/Director of the Department of Economic and Housing Development or his/her designee of a change of authorized agent or until the Owner files a new annual registration statement. The designation of an authorized agent in no way releases the owner from any requirement of this section.

d. This section shall not be construed to diminish any property maintenance responsibilities of property owners who are not subject to the provisions of the section.

§ 2:10-1.4E.4A Residential Fee Schedule.

[Ord. 6 PSF-A, 6-2-2011 § 1; Ord. 6 PSF-B, 3-18-2015; amended 10-19-2022 by Ord. No. 6PSF-A, 10-19-2022]

a. The initial registration fee for each building shall be $1,000. The fee for the first renewal is $3,000, and the fee for the second renewal is $6,000. The fee for any subsequent renewal beyond the second renewal is $10,000.

Vacant Property Registration Fee Schedule - Residential
Initial registration	$1,000
First renewal	$3,000
Second renewal	$6,000
Any subsequent renewal	$10,000

§ 2:10-1.4E.4B Commercial Fee Schedule.

[Added 10-19-2022 by Ord. No. 6PSF-A, 10-19-2022]

a. For buildings under 5,000 gross building square feet: For each abandoned commercial unit and/or vacant commercial unit thereof shall be $5,000. Each 1,500 square-foot unit is considered a separate unit and the registration fee will be assessed per unit and per floor. Any partial unit, as defined under Section 2:10-1.4E.1, shall qualify as an additional unit. Any unit exceeding 1,500 square feet will be considered multiple units, with the number being derived from taking the total unit square footage and dividing by 1,500 square feet. The fee for the first renewal is $15,000, and the fee for the second renewal is $30,000. The fee for any subsequent renewal beyond the second renewal is $50,000.

Vacant Property Registration Fee Schedule - Commercial Under 5,000 Gross Building Square Feet
Initial registration	$5,000
First renewal	$15,000
Second renewal	$30,000
Any subsequent renewal	$50,000

b. For buildings over 5,000 gross building square feet and under 25,000 gross building square feet total: For each abandoned commercial unit and/or vacant commercial unit thereof shall be $15,000. Registration fees shall be assessed per floor and per unit, where any unit exceeding 1,500 square feet will be considered multiple units, with the number being derived from taking the total unit square footage and dividing by 1,500 square feet. Any Partial unit, as defined under Section 2:10-1.4E.1, shall qualify as an additional unit. The fee for the first renewal is $25,000, and the fee for the second renewal is $50,000. The fee for any subsequent renewal beyond the second renewal is $75,000.

Vacant Property Registration Fee Schedule - Commercial Over 5,000 and Under 25,000 Gross Building Square Feet
Initial registration	$15,000
First renewal	$25,000
Second renewal	$50,000
Any subsequent renewal	$75,000

c. For buildings over 25,000 gross building square feet: For each Abandoned Commercial Unit and/or Vacant Commercial Unit thereof shall be $25,000. Registration fees shall be assessed per floor and per unit, where any unit exceeding 1,500 square feet will be considered multiple units, with the number being derived from taking the total unit square footage and dividing by 1,500 square feet. Any Partial unit shall qualify as an additional units defined under Section 2:10-1.4E.1. The fee for the first renewal is $50,000, and the fee for the second renewal is $75,000. The fee for any subsequent renewal beyond the second renewal is $100,000.

Vacant Property Registration Fee Schedule - Commercial Over 25,000 Gross Building Square Feet
Initial registration	$25,000
First renewal	$50,000
Second renewal	$75,000
Any subsequent renewal	$100,000

§ 2:10-1.4E.4C Vacant Lot Fee Schedule.

[Added 8-13-2024 by Ord. No. 6PSF-A(s), 08-13-2024]

The initial registration fee for each Vacant Lot shall be $0.50 per square foot (sq. ft.). The fee for the first renewal shall be $1.00 per square foot. The fee for the second renewal shall be $1.50 per square foot. The fee for any subsequent renewals shall be $2.00 per square foot. The renewal fee for the annual registration shall be due on the yearly anniversary of the initial registration. The registration fee will not be prorated or refunded.

Vacant Lot Registration Fee Schedule
Year	Price per square foot
Initial Registration	$0.50
First Renewal	$1.00
Second Renewal	$1.50
Any Subsequent Renewal	$2.00

§ 2:10-1.4E.5 Requirements for Owners of Vacant Property.

[Ord. 6 PSF-A, 6-2-2011 § 1; Ord. 6 PSF-B, 3-18-2015; amended 10-19-2022 by Ord. No. 6PSF-A, 10-19-2022]

The owner of any property or commercial unit that has become vacant or abandoned, and any person maintaining, operating or collecting rent for any such property or commercial unit that has become vacant or abandoned shall, within 30 days:

a. Enclose and secure the property or commercial unit against unauthorized entry as provided in the applicable provisions of the Code of the City of Newark, or as set forth in rules and regulations adopted by the Director of the Department of Public Works to supplement those codes; and

b. Post a sign affixed to the property or commercial unit indicating the name, address and telephone number of the owner, the owner's authorized agent for the purpose of service of process (if designated pursuant to Subsection 2:10-1.4E.3), and the person responsible for day-to-day supervision and management of the building, if such person is different from the owner holding title or authorized agent. The sign shall be of a size and placed in such a location so as to be legible from the nearest public street or sidewalk, whichever is nearer, but shall be no smaller than 18 inches by 24 inches; and

c. Acquire and otherwise maintain liability insurance by procuring a vacancy policy, covering any damage to any person or any property caused by any physical condition of the property or commercial unit; and

d. Secure the building from unauthorized entry and maintain the sign until the property or commercial unit is again legally occupied or demolished or until repair or rehabilitation is complete.

§ 2:10-1.4E.6 Exterior Protection.

[Added 10-19-2022 by Ord. No. 6PSF-A, 10-19-2022]

a. Exterior doors, windows, skylights and similar openings shall be maintained weather tight, clean, free of hazard and free of debris.

1. In the occurrence of a broken or cracked window or skylight, the windowpane shall be replaced.

2. In the occurrence of a removed or missing window or skylight, a window shall be installed.

3. Cracked or broken glass windows shall be replaced with glass of the same or superseding performance class.

b. The covering for doors and windows may not consist of any substance sprayed onto the windows. All enclosures shall be of such material and surface that they are neither unsightly or unattractive nor will materially detract from the general appearance of the building or the neighborhood and, when possible, shall be secured by normal means.

c. The coverings for windows and doors for partially abandoned or vacant properties, buildings and structures may consist of:

1. Venetian or similar blinds;

2. Drapes, curtains or shades;

3. Decorative patterned paper, neatly installed with all seams straight and uniformly taped; or

4. Coverings approved by the Director of the Department of Public Safety, or the Department of Health and Community Wellness, or the Department of Engineering, or when applicable, by the City of Newark.

5. Color schemes for the provisions prescribed above shall be consistent with general appearance of the building or the neighborhood.

d. Exterior stairs, porches, entrance platforms, fire escapes and the railings thereon shall be maintained in a safe and sound condition.

e. Exterior lighting systems shall be maintained in a completely operable, clean, sightly, non-deteriorated and safe condition.

f. Exterior walls, roofing and other weatherization systems, including foundations, shall be maintained so that water does not penetrate into the structure, including but not limited to basements, cellars or other interior wall areas.

g. Heavy undergrowth and accumulations of plant growth which are unattractive and/or inconsistent with the general appearance of the building and neighborhood, or are noxious or detrimental to health or safety, shall be eliminated.

h. Fences, walls, other minor construction and accessory structures shall be maintained in an attractive, safe, good and uniform condition.

i. Yards, courts and vacant lots shall be kept clean and free of hazards and debris and maintained in a manner consistent with the general appearance of the neighborhood so as to encourage economic growth.

j. All materials, conditions, etc. set forth in the above paragraphs a. through i. shall be maintained, replaced, or repaired in compliance with the New Jersey Uniform Commercial Code (UCC).

§ 2:10-1.4E.7 Property Inspection.

[Added 10-19-2022 by Ord. No. 6PSF-A, 10-19-2022; amended 8-13-2024 by Ord. No. 6PSF-A(s), 08-13-2024]

a. After filing a registration statement or a renewal of a registration statement, as set forth above (Subsection 2:10-1.4E.3), the owner of abandoned and/or vacant buildings and/or structures, or parts, floors or levels thereof, shall provide access to the Engineering Department of the City of Newark to conduct an inspection of the property, specifically including the exterior portion of the building(s), structure(s), part(s), floor(s) or level(s) to determine compliance with this section and applicable Municipal Code(s), following reasonable notice, as set forth above (Subsection 2:10-1.4E.3), during the period covered by the initial registration or any subsequent renewal.

1. The registration statement shall include the name, street address and telephone number of a natural person 21 years of age or older, designated by the owner or owners as the authorized agent for receiving notices of ordinance and/or code violations and for receiving process, in any court proceeding or administrative enforcement proceeding, on behalf of such owner or owners in connection with the enforcement of any applicable ordinance and/or code.

2. By designating an authorized agent under the provisions of this section the owner consents to receive any and all notices of code violations and/or violations under this section concerning the registered vacant and/or abandoned property, buildings and structures, or parts, floors or levels thereof, and all process in any court proceeding or administrative enforcement proceeding brought to enforce code provisions concerning the registered buildings and structures, or parts, floors or levels thereof, by service of the notice or 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 City of Newark's Deputy Mayor/Director of the Department of Economic and Housing Development or his/her designee of a change of authorized agent or until the owner files a new annual registration statement. The designation of an authorized agent in no way releases the owner from any requirement hereunder.

b. Vacant Lots.

1. Vacant Lots are subject to Title XVI, Health, Sanitation and Air Pollution, Chapter 16:12, Fencing of Vacant Lots (Section 16:12-1 through Section 16:12-7).

§ 2:10-1.4E.8 Administration.

[Ord. 6 PSF-A, 6-2-2011 § 1; Ord. 6 PSF-B, 3-18-2015; amended 10-19-2022 by Ord. No. 6PSF-A, 10-19-2022]

The Director of the Department of Economic and Housing Development may issue rules and regulations for the administration of the provisions of this Section 2:10-1.4E.

§ 2:10-1.4E.9 Enforcement.

[Added 10-19-2022 by Ord. No. 6PSF-A, 10-19-2022]S

The City of Newark may contract with and set the compensation of a private entity to assist the municipality in the implementation and administration of the property registration program. The following duties may be delegated to such private entity:

a. Identifying properties located within the City that are subject to the registration statement requirements;

b. Maintaining and updating the property registrations for the City;

c. Communicating with the creditors or the in-State representative or agent appointed by creditors located out of State of such properties;

d. Invoicing and collecting payment of any fees authorized by Subsections 2:10-1.4E.4A and 2:10-1.4E.4B; and

e. Monitoring compliance with the requirements of the ordinance.

Fees collected pursuant to the fee schedules set forth in Subsections 2:10-1.4E.4A and 2:10-1.4E.4B shall be utilized to fund administration, compliance, inspections, and the City's automated payment service.

§ 2:10-1.4E.10 Violations and Penalties.

[Ord. 6 PSF-A, 6-2-2011 § 1; Ord. 6 PSF-B, 3-18-2015; amended 10-19-2022 by Ord. No. 6PSF-A, 10-19-2022]

a. Any owner who is not in full compliance with this section or who otherwise violates any provision of this section or of the rules and regulations issued hereunder shall be subject to a fine of not less than $500 and not more than $1,000 for each offense. 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.

b. For purposes of this section, failure to file a registration statement in time, failure to provide correct information on the registration statement, failure to comply with the provisions of Subsection 2:10-1.4E.5 of this section, or such other matters as may be established by the rules and regulations of the Deputy Mayor/Director of the Department of Economic and Housing Development or his/her designee shall be deemed to be violations of this section.

§ 2:10-1.4E.11 Compliance with Other Provisions.

[Ord. 6 PSF-A, 6-2-2011 § 2; Ord. 6 PSF-B, 3-18-2015; amended 10-19-2022 by Ord. No. 6PSF-A, 10-19-2022]

Nothing in this Article 4 is intended to nor shall be read to conflict or prevent the City from taking action against buildings found to be unfit for human habitations or unsafe structures as provided in applicable provisions of the Code of the City of Newark, including but not limited to Title 18, Chapter 11; Title 18, Chapter 13; and Title 7, Chapter 5. Further, any action taken under any such code provision other than the demolition of a structure shall not relieve an owner from its obligations under this section.

§ 2:10-1.4F CARE, MAINTENANCE, SECURITY AND UPKEEP OF VACANT AND ABANDONED PROPERTIES ON WHICH A SUMMONS AND COMPLAINT IN AN ACTION TO FORECLOSURE HAS BEEN FILED.

§ 2:10-1.4F.1 Definitions.

[Ord. 6PSF-D, 10-15-2014]

CREDITOR

Shall mean any person or any Federal or State chartered bank, savings bank, savings and loan association, credit union or any other financial institution or entity acting on behalf of the Creditor including, but not limited to, servicers, located In-State or Out-of-State, who serves a summons and complaint in an action to foreclose on a mortgage on residential property located in the City of Newark, New Jersey.

PUBLIC OFFICER

Shall mean the Director of Economic and Housing Development, unless another person is designated by the Mayor and Municipal Council, by ordinance, to carry out the administration of any property maintenance or public nuisance code.

RESIDENTIAL PROPERTY

Shall mean any real property and the improvements, buildings, structures or house thereon, whether single or multi-family, whether or not owner occupied, used for residential purposes.

§ 2:10-1.4F.2 Maintenance.

[Ord. 6PSF-D, 10-15-2014]

Any person or entity filing a summons and complaint in an action to foreclose shall be responsible for the maintenance and upkeep of the vacant property, and if located Out-of-State, shall be responsible for appointing an In-State agent to act for the foreclosing person or entity.

§ 2:10-1.4F.3 Notification of the Municipal Clerk.

[Ord. 6PSF-D, 10-15-2014]

a. Any Creditor serving a summons and complaint in an action to foreclose on a mortgage on residential property located in the City of Newark, New Jersey shall, within 10 days of serving the summons and complaint, serve the City of Newark's Municipal Clerk (the "City Clerk") with a notice indicating that a summons and complaint in an action to foreclose on a mortgage has been filed against the subject property. The notice may contain information about more than one property and shall be provided by mail or electronic communication at the discretion of the City Clerk.

b. The above notice shall contain the name and contact information for the representative of the Creditor, who is responsible for receiving complaints of property maintenance and code violations. The City Clerk shall forward a copy of the Notice to the Public Officer as defined herein.

c. In the event that the property being foreclosed on is an affordable unit pursuant to the "Fair Housing Act," (N.J.S.A. 52:27D-301 et al.), then the Creditor shall identify that the property is subject to said "Fair Housing Act." The notice shall also include the street address, block and lot number(s) of the property, and the full name and contact information of an individual located within the State, who is authorized to accept service on behalf of the Creditor. The notice shall be provided to the City Clerk within 10 days of service of a summons and complaint in an action to foreclose on a mortgage against the subject property.

d. Pursuant to the "New Jersey Foreclosure Act," (N.J.S.A. 2A:50-69 et al.), any Creditor that has initiated a foreclosure proceeding on any residential property, which is pending in Superior Court shall provide to the City Clerk, a listing of all residential properties in the City of Newark for which the Creditor has foreclosure actions pending by street address and block and lot number(s). The City Clerk shall forward a copy of the notice to the Public Officer as defined herein.

§ 2:10-1.4F.4 Responsibility of Creditor, If Owner of a Residential Property Vacates or Abandons Property Subject to Foreclosure.

[Ord. 6PSF-D, 10-15-2014]

If the owner of a residential property vacates or abandons any property on which a foreclosure proceeding has been initiated or if a residential property becomes vacant at any point subsequent to the Creditors filing the summons and complaint in an action to foreclose on a mortgage against the subject property, but prior to vesting of title in the Creditor or any other third party, and if the property is found to be a nuisance or in violation of any applicable State or local code, the Public Officer, City Clerk, or other authorized Municipal Official shall notify the Creditor, which shall have the responsibility to abate the nuisance or correct the violation in the same manner and to the same extent as the title owner of the property, to such standard or specification as may be required by State law or municipal ordinance.

§ 2:10-1.4F.5 Repair by City.

[Ord. 6PSF-D, 10-15-2014]

If the City of Newark expends public funds in order to abate a nuisance or correct a violation on a residential property in situations in which the Creditor was given notice pursuant to this section, but failed to abate the nuisance or correct the violation as directed, the City of Newark shall have the same recourse against the Creditor as it would have against the title owner of the property, including, but not limited to the recourse provided under N.J.S.A. 55:19-100.

§ 2:10-1.4F.6 Out-of-State Creditors.

[Ord. 6PSF-D, 10-15-2014]

Any Out-of-State Creditor that has served a summons and complaint in an action to foreclose on a residential property, that subsequently becomes vacant, shall designate an In-State representative, who shall be responsible for the care, maintenance, and up-keep of the vacant property. The Out-of-State Creditor shall inform the City Clerk or the Public Officer that a summons and complaint in an action to foreclose on a mortgage has been filed against the subject property in the manner prescribed herein.

§ 2:10-1.4F.7 Violations and Penalties.

[Ord. 6PSF-D, 10-15-2014]

a. Any Creditor found by the City of Newark Municipal Court, or any other court of competent jurisdiction, to be in violation of this section shall be subject to a fine of $2,500, payable by the Creditor, for each day of the violation.

b. No less than 20% of any money collected pursuant to this section shall be utilized by the municipality for municipal code enforcement purposes.

§ 2:10-1.4G REGISTRATION OF FORECLOSURE MORTGAGE PROPERTIES.

§ 2:10-1.4G.1 Definitions.

[Added 10-19-2022 by Ord. No. 6PSF-A, 10-19-2022; amended 4-10-2024 by Ord. No. 6PSF-E, 04-10-2024]

As used in this section:

ANNUAL REGISTRATION

Shall mean 12 months from the date of the first action that requires registration, as determined by the City, or its designee, and every subsequent 12 months the property is registrable. The date of the initial registration may be different than the date of the first action that required registration.

EVIDENCE OF VACANCY

Shall mean 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.

FORECLOSURE or FORECLOSURE ACTION

Shall mean 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 registrable property pledged as security for a debt or the registrable property subject to the lien. This definition shall include, but is not limited to, a complaint and summons filed with respect to foreclosure on a mortgage, a lis pendens filed against it by the lender holding a mortgage on the property, a deed-in-lieu of foreclosure, sale to the mortgagee or lien holder, certificate of title and all other processes, activities and actions, by whatever name, associated with the described process. 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.

MORTGAGEE

Shall mean 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 registrable property, excluding governmental entities as assignee or owner.

OWNER

Shall mean every person, entity, or mortgagee, who alone or severally with others, has legal or equitable title to any real property as defined by this section; 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.

PROPERTY MANAGER

Shall mean any party designated by the owner as responsible for inspecting, maintaining and securing the property as required in this section.

REGISTRABLE PROPERTY

Shall mean any Real Property, residential or commercial, located in the City, 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 judgement 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.

REGISTRY

Shall mean a web-based electronic database of searchable real property records, used by the City to allow mortgagees the opportunity to register properties and pay applicable fees as required in this Chapter.

UTILITIES AND SERVICES

Shall mean 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.

VACANT AND ABANDONED

As used in this section shall mean any parcel of land in the City that contains any building or structure that 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:

a. Overgrown or neglected vegetation;

b. The accumulation of 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 materials on the property;

e. The accumulation of junk, litter, trash, or debris on the property;

f. The absence of window treatments such as blinds, curtains, or shutters;

g. The absence of furnishings and personal items;

h. Statements of neighbors, delivery persons, or government employees indicating that the property is vacant and abandoned;

i. Windows or entrances to the property that are boarded up or closed off, or multiple window 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 due to acts of vandalism, loitering, criminal conduct, or the physical destruction or deterioration of the property;

l. An uncorrected violation of a municipal building, housing, or similar code during the preceding year, or any 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; or

o. Any other reasonable indicia of abandonment.

§ 2:10-1.4G.2 Inspection and Registration.

[Added 10-19-2022 by Ord. No. 6PSF-A, 10-19-2022; amended 4-10-2024 by Ord. No. 6PSF-E, 04-10-2024]

a. Any mortgagee who holds a mortgage on registrable property located within the City shall perform an inspection of the property upon the filing of a Foreclosure Action or any evidence of an existing foreclosure action or lien holder has obtained ownership of the real property by the mortgagee.

b. Property inspected pursuant to paragraph 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 registrable property with the City registry, and, at the time of registration, indicate whether the property is vacant, and if so shall designate in writing an individual to inspect, maintain and secure the registrable property subject to the mortgage in foreclosure when legally possible. A separate registration is required for each 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 Annual Registration fee of five hundred dollars ($500.00) for each Registrable Property. Subsequent non-refundable Annual Registrations of properties and fees in the amount of five hundred dollars ($500.00) are due within ten (10) days of the expiration of the previous registration. An additional two thousand dollars ($2,000.00) per Registrable Property annually is required if the Registrable Property is vacant or abandoned when the summons and complaint in a Foreclosure Action is filed, or becomes vacant and abandoned pursuant to the definition in this section at any time thereafter while the property is in foreclosure, for a total of two thousand five hundred dollars ($2,500.00) due annually on such property. Said fees shall be used to offset the costs of: (1) registration and registration enforcement, (2) code enforcement and mitigation related to Foreclosure 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 section. Said fees shall be deposited to a special account in the City's Department dedicated to the cost of implementation and enforcement of this section, and fulfilling the purpose and intent of this section. 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 non-refundable Annual Registration fee(s). Properties registered less than 12 months prior to the effective date shall renew the registration every 12 months from the expiration of the original registration renewal date and shall pay the non-refundable Annual Registration fee(s).

g. A mortgagee shall also register the registrable property with the Department of Economic Development and Housing Development as a property in foreclosure and, as part of that registration: (1) provide the information regarding the creditor required by paragraph (1) of this section; (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 (3) identify whether the property is vacant;

h. 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 be provided in a notice pursuant to this paragraph following the filing of the summons and complaint, the creditor shall provide a notice to the City Clerk and the Mayor or other chief executive officer of the City and the Department of Economic Development and Housing Development containing the updated name, address, or telephone number within 10 days of the change in that information.

i. If the registered registrable property becomes vacant and abandoned in accordance with Subsection 2:10-1.4E.1 after initially being registered with the City, the creditor shall update the Department of Economic Development and Housing Development to reflect the change in the property's status;

j. 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.

k. 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 section. 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.

l. 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 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.

m. 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.

n. 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.

o. 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 section is a violation of this Chapter and shall be subject to enforcement by any of the enforcement means available to the City.

p. If any property is in violation of this Chapter the City 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.

q. Properties registered pursuant to Subsections 2:10-1.4G.1 through 2:10-1.4G.4 are not subject to registration under Subsections 2:10-1.4E.1 through 2:10-1.4E.10.

r. 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. Mortgagee and/or owner is expected to update the status of the property in the event of a mortgagee managed rental.

s. If the owner of a registrable property vacates registrable property on which a foreclosure proceeding has been initiated or if a registrable property becomes vacant at any point subsequent to the creditor's filing the summons and complaint in an action to foreclose on a mortgage against the subject property, but prior to vesting of title in the creditor or any other third party, and the exterior of the property is found to be a nuisance or in violation of Subsection 2:10-1.4E.6, the Department of Economic Development and Housing Development shall notify the creditor, which shall have the responsibility to abate the nuisance or correct the violation in the same manner and to the same extent as the owner. The Department of Economic Development and Housing Development shall include a description of the conditions that gave rise to the violation with the notice of violation and shall provide a period of not less than 30 days from the creditor's receipt of the notice for the creditor to remedy the violation. If the creditor fails to remedy the violation within that time period, the City may impose penalties allowed for the violation of City ordinances.

§ 2:10-1.4G.3 Maintenance Requirements.

[Added 10-19-2022 by Ord. No. 6PSF-A, 10-19-2022]

a. Registrable 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, including commercial vehicles, construction vehicles, abandoned vehicles, that give the appearance that the property is abandoned.

b. Vacant registrable properties 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 vacant registrable properties shall be maintained in accordance with the applicable code(s) at the time registration is required.

d. Yard maintenance of vacant registrable properties 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 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.

§ 2:10-1.4G.4 Security Requirements.

[Added 10-19-2022 by Ord. No. 6PSF-A, 10-19-2022]

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. Vacant registrable properties shall have a property manager 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 section, 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 section 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                                                   .

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 paragraph 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.

§ 2:10-1.5 Division of City Planning; Head; Duties. [1]

[Ord. 6 S+FE(S), 9-16-1998]

a. There shall be within the Department of Economic and Housing Development, a Division of City Planning, the head of which shall be the City Planning Officer.

b. The Division of City Planning, under the supervision of the Director of Economic and Housing Development, shall be responsible for the following duties:

1. Advise the Central Planning Board on matters presented for its approval;

2. Assist in the development and maintenance of the master plan for the City;

3. Recommend changes in zoning ordinances of the City;

4. Assist in the conduct of blight investigations and advise the Central Planning Board, through testimony and other written documentation, of his/her findings and conclusions in connection with the property which is the subject of the blight investigation;

5. Have custody of and maintain a current zoning map of the City; and

6. Conduct studies and perform research and deliver reports thereupon to assist in the determination of proper standards governing the physical development of the City.

[1] Editor's Note: This division was previously established within the Department of Land Use Control, and transferred to the Department of Development by Ord. 6 S+FF, 12-1-1988.

§ 2:10-1.6 Office of Boards; Head; Duties. [1]

[Ord. 6 S+FE (S), 9-16-1998 § 8; Ord. 6 S+FD, 9-18-2002 § 1; Ord. 6 S+FB, 12-19-2002 § 2]

a. Head of Department. There shall be within the Department of Economic and Housing Development an Office of Boards, the head of which shall be the Manager, Office of Boards.

b. Duties. The Office of Boards, under the supervision of the Director of Economic and Housing Development, shall provide such clerical and staff support as is necessary to assist in the efficient discharge of the duties assigned to the Central Planning Board, the Board of Adjustment and the Rent Control Board.

[1] Editor's Note: This division was previously established within the Department of Land Use Control which was abolished by Ord. 6 S+FO, 8-3-1994.

§ 2:10-1.7 Administrative Assignment of Central Planning Board.

[Ord. 6 S+FE (S), 9-16-1998 § 9, 10]

a. For purposes of general administrative procedures, the Central Planning Board and such staff as it may be empowered by law to name, shall be located within the Department of Economic and Housing Development and shall be subject to the oversight of the Director thereof.

b. The Central Planning Board, where so authorized by State Law, shall discharge its duties without direction or supervision by anyone within the Municipal government.

§ 2:10-1.8 Administrative Assignment of Board of Adjustment.

[Ord. 6 S+FE(S), 9-16-1998 § 11, 12]

a. For purposes of general administrative procedures, the Board of Adjustment and such staff as it may be empowered by law to name, shall be located within the Department of Economic and Housing Development and shall be subject to the oversight of the Director thereof.

b. The Board of Adjustment, where so authorized by State Law, shall discharge its duties without direction or supervision by anyone within the Municipal government.

§ 2:10-1.9 Administrative Assignment of Rent Control Board.

[Ord. 6 S+FE (S), 9-16-1998 § 13, 14]

a. For purpose of general administrative procedures, the Rent Control Board and such staff as it may be empowered by law to name, shall be located within the Department of Economic and Housing Development and shall be subject to the oversight of the Director thereof.

b. The Rent Control Board, where so empowered by State Law or local ordinance, shall discharge its duties without direction or supervision by anyone within the Municipal government.

§ 2:10-1.10 Director to Serve Notice of Intent to Sell Contiguous Property to Adjacent Property Owners.

[Ord. 6 S+FM, 9-17-1986]

a. Right of First Refusal by Contiguous Owners.

1. Definitions. Unless specifically defined below, words or phrases used in this section shall be interpreted so as to give them the meaning they have in common usage and to give this section its most reasonable application.

CONTIGUOUS PROPERTY

Shall mean any adjacent properties which are actually touching or in contact with each other.

NON-DEVELOPMENTAL PROPERTY

Shall mean any real property which is less than the minimum size required for residential development under the City of Newark Title XLI, Zoning and Land Use Regulations. The specific minimums within zoning districts shall be as stated in Title XLI, Zoning and Land Use Regulations, Chapter 5 Building Bulk and Design Requirements.

PUBLIC AUCTION

Shall mean any auction to sell real property as authorized by the Municipal Council pursuant to N.J.S. 40A:12-13.

2. That whenever it has been determined by the Department of Economic and Housing Development that any non-developmental property is no longer needed for public use, the Department of Economic and Housing Development shall be required to offer the property to the adjacent property owners contiguous to the real property at a price not less than the fair market value of the property prior to offering the property for sale at a public auction, except that where there is more than one owner with real property contiguous thereto, the property shall be sold to the highest bidder from all such owners. The offers and subsequent contract to purchase the property must be completed within 90 days or the property shall be submitted for sale at the next available public auction.

3. The Director, Department of Economic and Housing Development shall cause to be mailed by certified mail, a notice providing for the right of first refusal to contiguous property owners of non-developmental property.

The Director, Department of Economic and Housing Development, or his/her authorized representative shall be required to submit certified evidence to the Municipal Council that such notification as required herein has been served upon the person(s) or entities owning the property contiguous to the non-developmental property not needed for public use. Further, the Municipal Council shall not approve any resolution or ordinance authorizing the conveyance of such City-owned property unless there is a certification submitted by the Director, Department of Economic and Housing Development, or his/her authorized representative indicating compliance with the provisions herein.

§ 2:10-2 CITY OF NEWARK MUNICIPAL EMPLOYEES HOUSING ASSISTANCE PROGRAM.

§ 2:10-2.1 Establishment.

[Ord. 6 S+FJ, 11-17-1997; Ord. 6 S + FC, 8-5-1998 § A; amended 6-22-2021 by Ord. No. 6PSF-B (s), 06-22-2021; 1-10-2024 by Ord. No. 6PSF- B, 01-10-2024]

The Department of Economic and Housing Development is hereby authorized to establish a City of Newark Municipal Employees Housing Assistance Program ("The City of Newark Municipal Employees Housing Assistance Program") to provide for grant amounts of up to $20,000 contingent upon the availability of funding and up to $20,000 in credits against the final bid price of properties purchased at municipal auction. The selection criteria and regulations for participation in the program by qualifying purchasers shall be consistent with all terms, rules and regulations established by this section.

§ 2:10-2.2 Minimum Requirements for the Program.

[Ord. 6 S+FJ, 11-17-1997; Ord. 6 S+FC, 8-5-1998 § B; amended 6-22-2021 by Ord. No. 6PSF-B (s), 06-22-2021; 1-10-2024 by Ord. No. 6PSF- B, 01-10-2024]

a. Each grant must be used towards the purchase of a home within the Newark city limits. Homes sold privately at market rate will be eligible for the grant.

b. One (1) to four (4) family residential structures sold at public auction will be eligible for up to $20,000 in credits against the final bid price of properties purchased at municipal auction.

c. If the purchaser lives in the property for a period of five (5) consecutive years, the grant will be forgiven.

d. If the purchaser who is the successful bidder at a municipal auction, resides on the premises for a minimum of five (5) consecutive years, the credited amount does not have to be repaid.

e. In the event that the purchaser does not live in the home for five (5) years, the grant must be repaid in full upon transfer of title.

f. In the event that the purchaser at a municipal auction does not live in the home for five (5) years, the credited amount must be repaid in full upon transfer of title.

g. Purchasers will execute a grant agreement in order to receive funds.

h. Purchaser's deed will contain the restriction, that in the event that purchaser does not live in the home for five (5) years, the grant must be repaid.

i. Purchaser at a municipal auction will execute a mortgage and have a deed restriction reflecting the credited amount.

j. Purchaser at a municipal auction must repair, and improve the building in accordance with the requirements of the Revised Ordinances of the City of Newark and the Uniform Construction Code of the State of New Jersey. The repairs, alterations and improvements shall be started six (6) months from the date of closing title and shall be fully complete eighteen (18) months from the day of closing.

k. The Department shall have the responsibility for monitoring said transaction to insure compliance with the provisions of this section.

§ 2:10-2.3 Authorization to Execute Documents.

[Ord. 6 S+FJ, 11-17-1997; Ord. 6 S+FC, 8-5-1998 § C; 6 S+FE(S), 9-16-1998; amended 6-22-2021 by Ord. No. 6PSF-B (s), 06-22-2021]

The Deputy Mayor/Director of the Department of Economic and Housing Development is authorized to execute all documents necessary for participation in the program by qualified homebuyers, upon their demonstration that they have met all program criteria and other requirements for purchasing a home. The grant agreement shall be attested by the City Clerk and approved as to legality and form by the Corporation Counsel.

§ 2:10-2.4 Annual Report to Council.

[Ord. 6 S+FJ, 11-17-1997; Ord. 6 S+FC, 8-5-1998 § D; 6 S+FE(S), 9-16-1998; amended 6-22-2021 by Ord. No. 6PSF-B (s), 06-22-2021]

The Deputy Mayor/Director of the Department of Economic and Housing Development shall provide the Municipal Council with an annual report identifying:

a. The number of grant agreements entered into;

b. The address of the properties that were purchased;

c. The number of properties purchased at auction.

§ 2:10-2.5 Funding.

[Added 6-22-2021 by Ord. No. 6PSF-B(s), 06-22-2021]

Funding for this program will be subject to an annual appropriation by the Municipal Council.

§ 2:10-3 NEWARK LANDMARKS AND HISTORIC PRESERVATION COMMISSION.

§ 2:10-3.1 Declaration of Purpose and Public Policy.

[Ord. 6 S+FE, 3-7-2007 § 2]

Many improvements and landscape features having a special character or a special historical or aesthetic interest or value and representing the finest architectural products of distinct periods in the history of the City have been uprooted without adequate consideration of the irreplaceable loss to the people of the City of the aesthetic, cultural and historic values represented by such improvements and landscape features, notwithstanding the feasibility of preserving and continuing the use of such improvements and landscape features. In addition, distinct areas may be similarly uprooted or may have their distinctiveness destroyed, although the preservation thereof may be both feasible and desirable.

It is hereby declared as a matter of public policy that the protection, enhancement, perpetuation and use of improvements and landscape features of special character or special historical or aesthetic interest or value are a public necessity and are required in the interest of the health, prosperity, safety and welfare of the people. The purpose of this section is to:

a. Effect and accomplish the protection, enhancement and perpetuation and use of such improvements, landscape features and districts which represent or reflect elements of this City's cultural, social, economic, political and architectural history;

b. Safeguard the City's historic, aesthetic and cultural heritage, as embodied and reflected in such improvements, landscape features and districts;

c. Stabilize and improve neighborhood areas;

d. Foster civic pride in the beauty and noble accomplishments of the past;

e. Protect and enhance the City's attractions to tourists and visitors and the support and stimulus to business and industry thereby provided;

f. Strengthen the economy of the City; and

g. Promote the use of landmarks, landmark sites and historic districts for the education, pleasure and welfare of the people of the City.

§ 2:10-3.2 Definitions.

[Ord. 6 S+FE, 3-7-2007 § 2]

Whenever the following terms, words or phrases are used in this section, they shall have the meaning and scope herein given:

ADMINISTRATIVE OFFICER

Shall mean the Historic Preservation Officer appointed as per the provisions of this section. In the event that the Historic Preservation Officer is not appointed, the Planning Director of the City of Newark shall serve as the Administrative Officer.

ALTERATION

Shall mean any act or process that in any way effects a change in the design or outer appearance of a district, building, structure, object or site, or any part thereof.

APPLICATION

Shall mean an application form and all accompanying documents submitted for approval of alteration, repair, reconstruction, demolition or relocation of a historic district, building, structure, object or site or any part thereof that requires a permit or review of a development application.

ARCHAEOLOGICAL

Shall mean the science or study of the material remains of past life or activities and the physical site, location, or context in which they are found, as delineated in the Department of Interior's Archaeological Resources Protection Act of 1979.

ARCHITECTURAL

Shall mean relating or conforming to the rules of architecture; having or conceived of as having a single unified overall design, form, or structure.

ARCHITECTURAL FEATURE

Shall mean the architectural style, design, general arrangement and components of all the surfaces, including but not limited to the kind, texture and color of the building material, and the type and style of all windows, doors, lights, signs and other features appurtenant to such improvement.

BUILDING

Shall mean any structure, part of a structure, extension thereof, or addition thereto having a roof supported by columns, posts, piers, or walls and intended for the shelter, business, housing or enclosing of persons, animals or property.

COMMISSION

Shall mean the Newark Landmarks and Historic Preservation Commission.

CONSTRUCTION

Shall mean the act of (a) adding an addition to an existing building or structure; (b) the erection of a new principal or accessory building or structure on a lot or property; or (c) alterations.

DAYS

Shall mean calendar days.

DEMOLITION

Shall mean the dismantling or razing of all or part of any historic site or landscape feature or of any improvement in a historic district.

DEVELOPMENT

Shall mean any division of a parcel of land into two or more parcels, the construction, reconstruction, conversion, structural alteration, relocation, or enlargement of any building or other structure, or of any mixing, excavation of landfill, and any use or change in the use of any building or other structure, or land or extension of use of land, for which permission may be required pursuant to N.J.S.40:55D-1 et seq.

HISTORIC DISTRICT

Shall mean one or more historic sites and certain intervening or surrounding property significantly affecting or affected by the quality and character of the historic site or sites.

HISTORIC SITE

Shall mean any real property, building, manmade structure, natural object or configuration or any portion or group of the foregoing of historical, archaeological, cultural, scenic or architectural significance.

IMPROVEMENT

Shall mean any building, structure, work of art or other object installed upon real property or any part of such improvement.

OBJECT

Shall mean anything constructed, fabricated or created, the use of which does not require permanent or semi-permanent location on or in the ground.

ORDINARY MAINTENANCE

Shall mean the repair or renewal of deterioration, wear or damage to a structure of improvement in order to return same, as nearly as practicable, or its condition prior to the occurrence of such deterioration, wear or damage with materials and workmanship of the same quality and appearance and that does not in any way effect a change in the design or outer appearance of the structure or improvement.

RECONSTRUCTION

Shall mean the act or process of reproducing by new construction the exact form and details of a vanished building, structure, or object or part thereof, as it appeared at a specific period of time.

REHABILITATION

Shall mean the act or process of returning an improvement to a state of utility through repair or alteration which makes possible an efficient contemporary use while preserving those portions or features of the improvements which are significant to historical, architectural and cultural values.

RELOCATION

Shall mean any removal or relocation of a structure or improvement on its site or to another site.

RESTORATION

Shall mean the act or process of accurately recovering the form and details of an improvement by the removal of later work and/or by the reconstruction of missing earlier work.

STRUCTURE

Shall mean a combination of materials to form a construction for occupancy, use or ornamentation whether installed on, above, or below the surface of a parcel of land. Structure includes, but is not limited to, buildings, signs, fences, tanks, towers, poles, walkways, driveways, streets and roads.

§ 2:10-3.3 Commission Established.

[Ord. 6 S+FE, 3-7-2007 § 2]

There is hereby established in the Department of Economic and Housing Development a Commission which shall be known as "Newark Landmarks and Historic Preservation Commission."

§ 2:10-3.4 Membership.

[Ord. 6 S+FE, 3-7-2007 § 2]

The Commission in accordance with the provisions of N.J.S.A. 40:55D-107, shall consist of nine unsalaried members and two alternate members, all of whom have demonstrated interest, competence and/or knowledge in historic preservation. The members shall be selected as follows:

a. Two Class A members consisting of persons knowledgeable in building design and construction or architectural history and who may reside outside the City;

b. Two Class B members consisting of persons knowledgeable or with a demonstrated interest in local history and who may reside outside the City;

c. Five Class C members consisting of citizens of the City who shall hold no other municipal office, position or employment except for membership on the Planning Board or Board of Adjustment and;

d. Two alternate members who shall meet the qualifications of Class C members.

§ 2:10-3.5 Terms and Vacancies.

[Ord. 6 S+FE, 3-7-2007 § 2]

a. The Mayor shall appoint all members of the Commission and shall designate at the time of the appointment the regular members by class and the alternate members as "Alternate No. 1" and "Alternate No. 2." The terms of the members first appointed shall be so determined that to the greatest extent practicable, the expiration of the terms shall be distributed, in the case of regular members, evenly over the first four years after their appointment, and in the case of alternate members, evenly over the first two years after their appointment; provided that the initial term of no regular member shall exceed four years and that the initial term of no alternate member shall exceed two years. Thereafter, the term of a regular member shall be four years; and the term of an alternate member shall be two years.

b. If a vacancy shall occur otherwise than by the expiration of the term, it shall be filled by appointment, as above provided, for the unexpired term.

c. If requested, any member of the Commission may, after public hearing, be removed by the Municipal Council for cause.

§ 2:10-3.6 Rules and Organization.

[Ord. 6 S+FE, 3-7-2007 § 2]

a. The Commission shall annually elect a chairperson and vice-chairperson from its members. The City's Planning Officer shall serve as secretary to the Commission.

b. The Commission shall create rules and procedures for the transaction of its business subject to the following:

1. A quorum for the transaction of business shall consist of five of the Commission's members, including the chairperson, or, in his or her absence, the vice-president.

2. The Commission shall keep minutes and records of all meetings and proceedings including voting records, attendance, resolution, findings, determinations and decisions.

3. All such minutes and records shall be public records, a true copy of which shall be filed with the Municipal Clerk in a timely manner.

c. No member of the Commission shall be permitted to act on any matter in which he or she has either directly or indirectly any personal interest or financial interest.

§ 2:10-3.7 Administrative Officer.

[Ord. 6 S+FE, 3-7-2007 § 2; Ord. 6 S+FF(S), 9-25-2007 § 1]

a. The Mayor shall appoint a Historic Preservation Officer who shall serve as the administrative officer of this section.

b. Historic Preservation Officer's minimum professional qualifications shall be:

A Bachelor's degree in Historic Preservation, Planning, History, Architectural History or Archeology, or a Bachelor's Degree and two years of professional experience; or a professional degree in Architecture or Historic Architecture with a State License to practice Architecture; or a Master's degree in Historic Preservation, Planning, Anthropology, Archeology, Architecture, Architectural History or History with one year of professional experience.

c. The Historic Preservation Officer shall be required to advise the Commission on each application by evaluating the application on the merits of the alterations, additions, or demolition of the structure by submitting a recommended action to the Commission, taking into account Historic Preservation and neighborhood development goals, and issuing a Certificate of Appropriateness if warranted after action of the Commission.

d. The Historic Preservation Officer shall, in collaboration with the Commission, identify the geographic areas of the City, which are subject to historic preservation restrictions.

e. The Historic Preservation Officer shall educate owners of real property within a historic district about the process required about making alterations, additions or demolition of the structures by providing information about historic preservation in multiple languages within the target area.

f. The Historic Preservation Officer shall serve as a liaison with the Code Enforcement and Inspection Officers of the City.

g. The Historic Preservation Officer shall establish a communication line for the general public to make inquiries or report preservation concerns.

h. The Historic Preservation Officer shall also have responsibility for coordinating the City's preservation activities with those of State and Federal agencies and with local, State and national preservation organizations in the private sector.

i. In the event that a Historic Preservation Officer is not appointed, the Director of City Planning or his/her designee, or in the absence thereof, the Director of the Department of Economic and Housing Development or his/her designee shall serve as the Administrative Officer of this section and shall be bound by all of its duties. The Division of City Planning shall supply staff to assist the Administrative Officer in administrative duties of this section, but not for enforcement duties.

§ 2:10-3.8 Expenses and Costs.

[Ord. 6 S+FE, 3-7-2007 § 2]

a. The Municipal Council shall make provisions in the City budget and appropriate funds for the expenses of the Commission.

b. The Commission may employ or contract for the services of experts and other staff and services as it may deem necessary. The Commission shall not, however, (exclusive of gifts or grants) exceed the amounts appropriated by the Municipal Council for its use.

c. The Commission shall obtain its legal counsel from the Municipal Attorney at the rate of compensation determined by the City Council, unless the City Council, by appropriation, provides for separate legal counsel for the Commission.

§ 2:10-3.9 Scope of Powers.

[Ord. 6 S+FE, 3-7-2007 § 2; Ord. 6PSF-L, 5-18-2016]

a. Nothing contained in this section shall be construed as authorizing the Commission in acting with respect to any site, historic district, or improvement therein, or in adopting regulations in relation thereto:

1. To regulate or limit the height and bulk of buildings except in designated historic districts.

2. To regulate or supervise ordinary maintenance and repair which in no way affects the design, material, or appearance of a landmark; or

b. Except as provided in paragraph a above, the Commission shall have the responsibility to:

1. Prepare a survey of historic sites of the municipality pursuant to criteria identified in the survey report;

2. Make recommendations to the Planning Board on the Historic Preservation Plan element of the master plan and on the implications for preservation of historic sites of any other master plan elements;

3. Advise the Administration through the Planning Board on the inclusion of historic sites in the recommended capital improvement program;

4. Advise the Planning Board and Board of Adjustment on applications for development pursuant to N.J.S.A. 40:55D-110;

5. Provide the Zoning Officer with written reports pursuant to N.J.S.A. 40:55D-111 on the application of the zoning ordinance provisions concerning historic preservation;

6. Carry out such other advisory, educational and informational function as will promote historic preservation in the City of Newark subject to the prior approval of the Office of the Mayor;

7. Advise all appropriate City departments and agencies in the manner specified in Title XLI, Zoning and Land Use Regulations, Chapter 10, Historic Sites and Districts, of these Revised General Ordinances on all permit applications which propose to construct, reconstruct, alter, restore, preserve or demolish any architectural features of a historic site or any exterior architectural feature of a historic district which appears on the official landmark and district designation list and map or which is under consideration for designation as a historic site, or historic district; and

8. Advise all appropriate City departments and agencies on the availability of grant monies and programs from both public and private sources which may assist in the promotion of historic preservation in the municipality.

9. Review and either approve or disapprove a Municipal Council member's proposal, through an application process, for a street dedication or street designation in a historic district pursuant to subsection 2:3-1.12.

§ 2:10-4 URBAN ENTERPRISE ZONE CITYWIDE FACADE IMPROVEMENT PROGRAM.

§ 2:10-4.1 Program Established.

[Ord. 6PSF-J, 11-22-2010; Ord. 6PSF-B, 9-21-2016; amended 1-8-2020 by Ord. No. 6PSF-B, 01-08-2020]

Invest Newark [IN] (formerly Newark Community Economic Development Corporation [NCEDC], formerly the Brick City Development Corporation [BCDC]) and/or his designee or other entity authorized by the Municipal Council to administer and manage the City's Urban Enterprise Zone Program is authorized to establish and administer a Citywide Commercial Corridor Revitalization Facade Improvement Program (the "Facade Improvement Program") pursuant to the guidelines set forth herein. Modifications of these guidelines may only be made by the Municipal Council of the City of Newark.

§ 2:10-4.2 Definitions.

[Ord. 6PSF-J, 11-22-2010; Ord. 6PSF-B, 9-21-2016; amended 1-8-2020 by Ord. No. 6PSF-B, 01-08-2020]

APPLICANT

Shall mean the legal owner of a parcel of real property located in an eligible area, or a tenant whose business has been certified as a UEZ business and which business is located in an eligible area and the owner of the property in which such business is located, who is applying for a loan under the Facade Improvement Program.

DIRECTOR

Shall mean the Deputy Mayor/Director of the Department of Economic and Housing Development of the City of Newark.

FACADE IMPROVEMENT PROGRAM REVIEW COMMITTEE OR FIPRC

Shall mean the committee established hereunder vested with the authority to approve or deny all applications for loans under the Facade Improvement Program, as further defined in Section 2:10-4.9.

FACADE IMPROVEMENTS

Shall mean physical exterior improvements to the facade(s) of a commercial building which face(s) a public street including, but not limited to, installation or repair of windows, doors, awnings, signs, lighting, security gates, anti-graffiti measures, and fencing; brick repointing; painting; landscaping; and other decorative or architectural improvements.

LENDER

Shall mean Invest Newark [IN] or other entity authorized by the Municipal Council to administer and manage the City of Newark's Urban Enterprise Zone Program.

MUNICIPAL COUNCIL

Shall mean the Municipal Council of the City of Newark.

PRELIMINARY PROPERTY IMPROVEMENT PLAN OR PPIP

Shall mean a proposed property improvement plan submitted with an Applicants application.

PROPERTY IMPROVEMENT PLAN OR PIP

Shall mean the written plan approved by the FIPRC describing the facade improvements and other improvements which must be made to a property improved in part through a loan under the Facade Improvement Program.

UEZ BUSINESS

Shall mean a business that has been certified by the State of New Jersey as a qualified business in an urban enterprise zone or an urban enterprise zone-impacted business district.

§ 2:10-4.3 Eligible Areas and Funding Limitations.

[Ord. 6PSF-J, 11-22-2010; Ord. 6PSF-B, 9-21-2016; amended 1-8-2020 by Ord. No. 6PSF-B, 01-08-2020]

a. Eligible Areas. Applications for the Facade Improvement Program will be accepted by Invest Newark [IN] and/or his designee or other entity authorized by the Municipal Council to administer and manage the City's Urban Enterprise Zone Program from applicants for projects located in the urban enterprise zones; or

b. Funding Limits. While generally, complete applications received from eligible applicants will be reviewed by the FIPRC on a first come, first served basis, if applications are received for loans in excess of amounts current funding levels allow, the FIPRC, reserves the right to prioritize applications based upon economic development priorities.

c. Eligibility Limitation. Only one application will be accepted from each property. A property is defined as a contiguous building or buildings that are connected by common hallway, use or ownership.

§ 2:10-4.4 Eligible and Ineligible Activities.

[Ord. 6PSF-J, 11-22-2010; Ord. 6PSF-B, 9-21-2016; amended 1-8-2020 by Ord. No. 6PSF-B, 01-08-2020]

a. Eligible Activities. Improvements that contribute to the visual enhancement of the property as viewed from the public right-of-way including, but not limited to, the following, are eligible activities the costs of which may be funded with program loan proceeds:

1. Exterior painting;

2. Decorative or architectural treatment;

3. Replacement, repair or refinishing of stucco, wood, stone, brick, metal, tile or other exterior building materials; cleaning of masonry; recaulking;

4. Signage;

5. Awnings and canopies;

6. Exterior lighting;

7. Landscaping directly related to the overall exterior improvement plan of the building;

8. Repair/replacement of doors or windows visible from public view;

9. Anti-graffiti measures;

10. Fencing;

11. Exterior security gates.

b. Ineligible Activities. The costs of the following items are not eligible uses of program loan proceeds but may be undertaken as part of the applicant's total improvement project at the applicant's expense.

1. Improvements in progress or completed prior to preliminary approval.

2. Removal of illegal improvements.

3. Routine maintenance, cleaning or repair costs that is not part of an eligible facade improvement project.

4. Billboard.

5. Roofing.

6. Mechanicals and HVAC Systems.

7. Interior work.

8. New construction.

9. Electronic security systems.

10. Parking areas.

11. Improvements to the rear or non-street facing side of buildings.

12. Structural repairs.

13. Other items as deemed inappropriate by the Department of Economic and Housing Development under the criteria set forth herein.

c. Eligibility Determination. The FIPRC will review all applications and PPIPs, and shall make the final determination as to whether a proposed facade improvement is eligible or ineligible under the Facade Improvement Program. The determination by Facade Improvement Program Review Committee is final, subject to approval by Invest Newark [IN] and/or his designee or other entity authorized by the Municipal Council to administer and manage the City's Urban Enterprise Zone Program.

§ 2:10-4.5 Loan Amount.

[Ord. 6PSF-J, 11-22-2010; Ord. 6 PSF-B, 9-21-2016]

a. Loan Amount. If approved, and subject to receipt of grant funds, a loan shall be made available to an applicant by the lender in an amount not to exceed $50,000 per property. Any expenditure detailed in the PIP which exceed $50,000 shall be the sole responsibility of the applicant, who must demonstrate to lender his/her/its ability to finance such additional expenditures at the time an application is submitted for consideration.

§ 2:10-4.6 Loan Terms.

[Ord. 6PSF-J, 11-22-2010; Ord. 6PSF-B, 9-21-2016]

a. All loans approved by the lendor, pursuant to subsection 2:10-4.5a, shall be in the form of an interest only loan bearing interest at the rate of 2% annually, with a term of five years, and secured by a mortgage on the property where the facade improvements will be made. Provided that the owner is not in default as set forth in subsection 2:10-4.7, at the end of the five-year term, both the principal and accrued interest on the loan shall be 100% forgiven.

b. Terms Applicable to All Loans. All applicants awarded a loan shall also execute a promissory note to the lender for the full value of the loan, and shall be jointly and severally liable to the lender for complying with the terms of repayment of the loan. All facade improvement work must be completed within six months from the date that the loan is issued.

§ 2:10-4.7 Default.

[Ord. 6PSF-J, 11-22-2010; Ord. 6PSF-B, 9-21-2016; amended 1-8-2020 by Ord. No. 6PSF-B, 01-08-2020]

a. In addition to a default under the loan agreement, note or mortgage, should any of the following occur prior to the end of the term of the loan, such event shall be deemed a default:

1. Applicant makes changes to the facade of the property without the prior express written consent of Invest Newark [IN] and/or his designee or other entity authorized by the Municipal Council to administer and manage the City's Urban Enterprise Zone Program.

2. Applicant does not maintain its UEZ Business Certification from the date of the application until the end of the loan term.

3. Applicant does not pay when due all tax obligations to the State of New Jersey, the City of Newark or any other entity with the power to tax the applicant.

4. Applicant sells or transfers the property at any time during loan term without the prior express written consent of Invest Newark [IN] and/or his designee or other entity authorized by the Municipal Council to administer and manage the City's Urban Enterprise Zone Program, and without the assumption of the note by the purchaser.

5. Applicant fails to operate in compliance with all applicable Federal, State and local laws and regulations.

6. Applicant fails to complete the facade improvement work within six months from the date that the loan is issued.

b. If the applicant defaults as defined in subsection 2:10-4.7a or as provided in the loan agreement, note or mortgage, the applicant shall immediately repay the lender as follows:

1. 100% of the original principal balance of the note plus all accrued interest shall be due and payable to the lender if applicant defaults within one year from the date that loan term begins;

2. 80% of said note plus all accrued interest shall be due and payable to the lender if applicant defaults within two years from this date that loan term begins;

3. 60% of said note plus all accrued interest shall be due and payable to the lender if applicant defaults within three years from this date that loan term begins;

4. 40% of said note plus all accrued interest shall be due and payable to the lender if applicant defaults within four years from this date that loan term begins;

5. 20% of said note plus all accrued interest shall be due and payable to the lender if applicant defaults within five years from this date that loan term begins; and

6. 0% of said note and accrued interest shall be due and payable to the lender at the end of year five where the lendor releases the mortgage in full.

(a) Full Mortgage Release. A full mortgage release will be issued to the applicant by the lendor at the end of the five year loan period indicating that the mortgage on the property where the facade improvements were made, together with the loan secured by said mortgage, has been fully paid, satisfied, released, and discharged, and that the property secured thereby has been released from the lien of such mortgage.

(b) Remedies. In the event of default, the lender may exercise any combination of the remedies available to it with respect to the security agreement(s). The lender may take whatever action at law, or in equity, as may appear necessary or desirable to collect any outstanding balance or to enforce the performance and observation of any other obligation or agreement of the recipient. Failure of the lender to take action shall not be deemed a waiver.

c. Notice and Right to Cure Default. In the event that the applicant is in default pursuant to subsection 2:10-4.7a or pursuant to the loan agreement, note or mortgage the lender shall notify the applicant in writing of the exact nature of the default.

With regard to a default under subsection 2:10-4.7a,2, 3, or 5, applicant shall have 30 days from the date of the notice of default to cure the default. As defaults under subsection 2:10-4.7a, 1., 2., 4, and 6, are not capable of cure, the lender shall be immediately entitled to seek to enforce any remedy available at law or in equity or to enforce any security agreement;

The applicant shall not be relieved of any of its obligations to comply by reason of any failure of the lender to enforce prompt compliance.

§ 2:10-4.8 Application Process.

[Ord. 6PSF-J, 11-22-2010; Ord. 6PSF-B, 9-21-2016; amended 1-8-2020 by Ord. No. 6PSF-B, 01-08-2020]

a. Applications. Applicants may obtain an application from Invest Newark [IN] and/or his designee or other entity authorized by the Municipal Council to administer and manage the City's Urban Enterprise Zone Program. At a minimum, the application will require the submission of the following:

1. Minimum Required Submissions.

(a) Application Form

(b) Proof of UEZ certification or if not certified, UZ-5-SB-A form.

(c) Three years of most recent Federal tax returns.

(d) Preliminary Property Improvement Plan (as more fully explained in Section 2:10-4.8a.2.

(e) Nonrefundable application fee $50 in the form of a money order or cashier's check.

(f) Proof of title and property insurance.

(g) Submission of all required administrative documents:

(1) Non-Collusion Affidavit

(2) Stockholder Disclosure

(3) Hold Harmless Agreement

(4) Certificate of Compliance with Contractor Pay to Play

(5) Political Contribution Disclosure Form

(6) Business Registration Certificate

(7) Certificate of Liability

(8) Business Insurance.

2. Preliminary Property Improvement Plan (PPIP). The PPIP shall describe the proposed Facade Improvements and any other improvements applicant intends to make to the property concurrently with the facade improvements, and shall include a reasonably estimated budget for such improvements.

b. Eligibility Verification and Completeness Review. Once completed, an applicant must submit its application, along with all required documents as provided in the application, to Invest Newark [IN] and/or his designee or other entity authorized by the Municipal Council to administer and manage the City's Urban Enterprise Zone Program to confirm an applicant's eligibility and that an application is complete. Upon receipt, Invest Newark [IN] and/or his designee or other entity authorized by the Municipal Council to administer and manage the City's Urban Enterprise Zone Program shall submit the PPIP to the City of Newark Division of City Planning for review and initial approval. The City of Newark Division of City Planning shall provide its determination and comments, if any, to Invest Newark [IN] and/or his designee or other entity authorized by the Municipal Council to administer and manage the City's Urban Enterprise Zone Program within 30 days of receipt, and Invest Newark [IN] and/or his designee or other entity authorized by the Municipal Council to administer and manage the City's Urban Enterprise Zone Program shall then, along with the comments provided by the City of Newark Division of City Planning, provide its own comments, if any, to the applicant within 30 days of receipt from the City of Newark Division of City Planning, and the applicant shall then revise such PPIP in accordance with such comments.

c. Review by FIPRC. Upon a determination by Invest Newark [IN] and/or his designee or other entity authorized by the Municipal Council to administer and manage the City's Urban Enterprise Zone Program and the City of Newark Division of City Planning that an application is complete and the applicant eligible, Invest Newark [IN] and/or his designee or other entity authorized by the Municipal Council to administer and manage the City's Urban Enterprise Zone Program shall forward a complete and eligible application to the FIPRC for review. The FIPRC shall complete its initial review of an application within 60 days of transmission from Invest Newark [IN] and/or his designee or other entity authorized by the Municipal Council to administer and manage the City's Urban Enterprise Zone Program. While the FIPRC retains sole discretion to approve or deny an application, such decision shall be based on the following criteria:

1. The applicant has secured all approvals necessary to commence the project;

2. The applicant is undertaking other improvements to the property;

3. The applicant has sought and/or secured other financial assistance for improvement of the building;

4. The scope of work to be performed conforms to other economic development priorities;

5. The amount of outstanding debt secured by the property or otherwise carried by the applicant;

d. Applicant(s) are required to obtain all necessary permits from the appropriate City agencies (Building, Zoning, Planning, Historic Preservation Commission, etc.). In no way does approval by the Facade Improvement Program Review Committee substitute for appropriate approval by City agencies. An approval issued by the Facade Improvement Program Review Committee shall be conditional, subject to the receipt of required permits and approvals. Copies of permits and all approvals required by the City of Newark and other agencies including, but not limited to, those by Building, Zoning, Planning, Historic Preservation Commission shall be provided to the City of Newark, Division of City Planning before grant reimbursements can be issued.

§ 2:10-4.9 Facade Improvement Program Review Committee.

[Ord. 6PSF-J, 11-22-2010; Ord. 6PSF-B, 9-21-2016; amended 1-8-2020 by Ord. No. 6PSF-B, 01-08-2020]

a. There shall be created a Facade Improvement Program Review Committee, which shall have five members comprised as follows:

1. One staff member of the City of Newark Division of City Planning;

2. Invest Newark [IN] and/or his designee or other entity authorized by the Municipal Council to administer and manage the City's Urban Enterprise Zone Program and one of its appointed staff members;

3. One staff member of the Building Department (Office of the Uniform Code Construction Official); and

4. A Councilmember, or his or her designee, whose Ward is affected by a particular facade project under review by the FIPRC.

b. The FIPRC will be responsible for reviewing all applications, approving the PIP and making the final approval or denial of loans for the Facade Improvement Program, subject to approval by Invest Newark [IN] and/or his designee or other entity authorized by the Municipal Council to administer and manage the City's Urban Enterprise Zone Program. The FIPRC has the right to reject any or all applications or parts of applications, to negotiate modifications of applications submitted, and to negotiate specific work elements with an applicant for a project of lesser or greater magnitude than described in the applicant's proposal.

§ 2:10-4.10 Selection of Contractors.

[Ord. 6PSF-J, 11-22-2010; Ord. 6PSF-B, 9-21-2016]

All applicants must present three cost estimates from pre-approved contractors for the facade improvements following approval of an application.

§ 2:10-4.11 Right of Entry.

[Ord. 6PSF-J, 11-22-2010; Ord. 6PSF-B, 9-21-2016]

By accepting a loan under the Facade Improvement Program and by executing the loan agreement, note and mortgage, an applicant thereby grants the lender a right of entry, without the necessity of execution of any further documentation, which shall permit the lender or their agent's access to the property for the purpose of confirming compliance with the terms of this chapter, the loan agreement, note and mortgage.

§ 2:10-4.12 Disbursement of Loans.

[Ord. 6PSF-J, 11-22-2010; Ord. 6PSF-B, 9-21-2016; amended 1-8-2020 by Ord. No. 6PSF-B, 01-08-2020]

a. 50% of the loan shall be disbursed by lendor upon final approval by the FIRPC in accordance with subsection 2:10-4.8c of this subsection. The remaining 50% shall be made by lendor upon applicant's satisfactory completion of the facade improvements. The lender, in its sole discretion, determine on a case-by-case basis the best manner of disbursing funds to accomplish the goals of the program. No payments shall be made under this Program until all of the improvement work for which a payment request is being made have been inspected and approved by the lender and applicant has provided sufficient documents to Invest Newark [IN] and/or his designee or other entity authorized by the Municipal Council to administer and manage the City's Urban Enterprise Zone Program and that applicant has satisfied each of the conditions precedent to disbursement found in subsection 2:10-4.12c of this section, has been satisfied. Payments may be made to borrower, and contractors/vendors or borrower and contractors/vendors jointly.

b. Applicant(s) shall be required to submit a notification of completion to lender for requisition of payment upon the completion of the facade improvement project. Invest Newark [IN] and/or his designee or other entity authorized by the Municipal Council to administer and manage the City's Urban Enterprise Zone Program and one of its appointed shall inspect the work to determine compliance with the application no later than 30 days from notification of completion by applicant and prior to disbursement of any funds.

c. 

The applicant must comply with the following conditions precedent to disbursement before any funds will be disbursed:

i. Submit to the lender all final invoices from contractors and suppliers marked "Paid in Full" along with copies of the checks made payable to the contractor or supplier, ii. Provide copies of waivers of lien from all contractors, iii. Supply proof that the improvements meet all City code requirements (Building, Planning, Zoning, Historic Preservation Commission, etc.); and iv. Supply proof that the improvements have passed all final inspections from the City's Construction Official and provide the lender with a copy of fully executed certificate of occupancy.

§ 2:10-4.13 Prevailing Wages.

[Ord. 6PSF-J, 11-22-2010; Ord. 6PSF-B, 9-21-2016]

The Office of Attorney General has determined that N.J.A.C. 12A:2A-3.1, et seq. concerning the payment of prevailing wage in connection with certain construction contracts applies to projects funded by Urban Enterprise Zone Assistance Fund.

§ 2:10-4.14 Insurance Requirements/Indemnification.

[Ord. 6PSF-J, 11-22-2010; Ord. 6PSF-B, 9-21-2016]

a. General Requirements. The applicant, its subsidiaries and/or its contractors and/or subcontractors shall maintain for the duration of the contracts, at its cost and expense, insurance against claims for injuries to persons and damages to property, including contractual liability, which may arise from or in connection with the performance of the work by the applicant, its agents, employees, representatives, assigns or subcontractors. This insurance shall cover such claims as may be caused by any negligent act or omission and shall be in the amounts of $1,000,000 per occurrence and $2,000,000 aggregate.

b. Primary Insurance. The applicant's insurance coverage shall be primary insurance with respect to the lender, its officers, officials, employees and volunteers and shall apply separately to each project or location. Any insurance or self-insurance maintained by the lender, its officers, officials, employees or volunteers shall be excess of the applicant's insurance and shall not contribute with it.

c. Additional Insured Status. The lender is to be listed as additional insured for liability arising out of activities performed by or on behalf of the applicant. This can be achieved by paragraph c, 2 (a) and (b), below:

1. The following language on the face of the insurance certificate and in the policy:

Certificate Holder is included as additional insured.

2. Provide the lender with a copy of the Additional Insured Broad Endorsement Form.

(a) Certificate of Insurance/Endorsements: A certificate of insurance from an insurer with a Best's rating of no less than A indicating compliance with the required coverages, must be supplied to the lender. The applicant must notify the lender immediately, of any material change in insurance coverage, such as changes in limits, coverages, change in status of policy, etc. The lender reserves the right to require complete copies of insurance policies at all times.

(b) Workers Compensation Insurance. The applicant shall procure and maintain during the life of this contract, Workmen's Compensation Insurance in the statutory amounts pursuant to N.J.S.A. 34 et seq. and Employers' Liability with minimum limits of $500,000 each accident/$500,000 policy limit by disease/$100,000 bodily injury each employee.

(c) Amounts: All insurance shall be written for up to the following limits of liability for general liability and/or commercial liability insurance.

General Liability Insurance:	$1,000,000 per occurrence
	$2,000,000 aggregate
Commercial Liability Insurance:	$1,000,000 per occurrence
	$2,000,000 aggregate

Upon commencement of the contract, the applicant must provide the City with written evidence of compliance with required coverage as listed above.

d. Hold Harmless/Indemnification.

1. To the fullest extent permitted by law, the applicant shall, at its sole cost and expense, indemnify, defend and satisfy all judgments, and hold the lender, its officers, employees, agents, servants and representatives, harmless from and against any and all claims, actions, judgments, costs, penalties, liabilities, damages, losses and expenses, including but not limited to attorney's fees and worker's compensation benefits arising out of or resulting from the performance of this agreement.

2. The applicant has agreed to execute a Hold Harmless Agreement prescribed by the lender, which is incorporated by reference and made part of this agreement.

3. The applicant further agrees that failure to execute a Hold Harmless Agreement is not a waiver by the lender.

§ 2:10-4.15 Program Administration.

[Ord. 6PSF-J, 11-22-2010; Ord. 6PSF-B, 9-21-2016; amended 1-8-2020 by Ord. No. 6PSF-B, 01-08-2020]

Invest Newark [IN] and/or his designee or other entity authorized by the Municipal Council to administer and manage the City's Urban Enterprise Zone Program and the Division of City Planning are authorized to develop additional procedures, application materials, and program guidelines necessary to implement and administer the program authorized by this chapter and to enter into all contracts necessary to accomplish the purpose of this chapter. All contracts entered into by the City of Newark shall be approved as to form and legality by the Corporation Counsel.

§ 2:10-4.16 Waiver of Mortgage Requirement.

[Ord. 6PSF-J, 11-22-2010; Ord. 6PSF-B, 9-21-2016; amended 1-8-2020 by Ord. No. 6PSF-B, 01-08-2020]

If an applicant demonstrates to the satisfaction of the lender that the granting of a mortgage against the property to be improved with a program loan will result in a default under any other loan or contract to which such applicant is a party, and such applicant provides alternate security in the form of a performance bond, letter of credit, or, but only for applicants who have demonstrated to the satisfaction of Invest Newark [IN] sufficient financial capacity, a personal guaranty.

§ 2:10-4.17 Annual Report to Council.

[Ord. 6PSF-J, 11-22-2016; Ord. 6PSF-B, 9-21-2016; amended 1-8-2020 by Ord. No. 6PSF-B, 01-08-2020]

Invest Newark [IN] and/or his designee or other entity authorized by the Municipal Council to administer and manage the City's Urban Enterprise Zone Program shall provide the Municipal Council with an annual report each year identifying:

a. Names and number of contracts entered into.

b. The amount of said contracts.

c. The property addresses for such contracts.

d. Any additional requested information by the Municipal Council.

§ 2:10-4.18 Sunset Clause.

[Ord. 6PSF-J, 11-22-2010; Ord. 6PSF-B, 9-21-2016][1]

This Program is hereby renewed effective the date of this First Amendment and shall sunset five years from the date of adoption of this First Amendment.

[1] Editor's Note: First Amendment refers to Ord. 6PSF-B, adopted 9-21-2016.

§ 2:10-5 CITY OF NEWARK SOUTH WARD REHABILITATION PROGRAM.

[Ord. No. 6 PSF-D, 3-2-2011 § 1]

a. Establishment and Summary of Program. The Department of Economic and Housing Development is authorized to establish and administer the South Ward Home Improvement Program (the "Program"). The following is a summary of the Program:

1. South Ward Newark residents that own and occupy a residential structure consisting of one to three dwelling units shall be eligible to submit an application to participate in the Program.

2. The home must be located in the City of Newark's South Ward and be in need of repairs that will improve the health and well-being of its residents. Repairs which are solely of a cosmetic nature will not be considered. Non-residential buildings are also ineligible for participation in this program.

3. Program funds provided by the City will be made available in the form of a deferred loan. Deferred loans shall be for the cost of repairs or improvements, not to exceed $10,000 per structure.

4. The repairs and improvements will be prioritized by the Office the South Ward Council Member, in consultation with the Department of Economic and Housing Development based on the individual needs of each property owner.

b. Eligibility. Eligible participants must occupy and be the owner(s) of record at the time of application submission and must have owned the home for no less than two years. Residential properties must consist of one to three residential units. The eligible property must be the only real estate property owned by the applicant. Entities such as for-profit corporations, nonprofit corporations, partnerships, etc., are ineligible for participation in this Program.

Municipal property taxes, water bills, and sewer bills must be current at the time the applicant(s) apply to this program. These accounts must have a current payment status, or the applicant must have a payment agreement with the City of Newark. In addition, applicants must be current with all mortgage payments or may be ineligible.

c. Income Verification. Income verification shall be based upon the applicant's current "Adjusted Income" as reported on the Federal Income Tax 1040/1040A or addendum award letters or verification from any entities providing fixed income including Social Security, Pension, Disability or Death Benefits. "Income" shall be defined as the total combined earnings of all household members. "Household members" mean all persons, 18 years and older, who share the owner/occupant dwelling unit.

d. Types of Financial Assistance. Program funds shall not exceed $10,000 per property. Program funds provided by the City will be made available in the form of a deferred loan. The deferred loan shall carry no interest. The City funds shall be repaid upon conveyance or transfer of title to an unrelated buyer or in the event that the borrower ceases to occupy the home as the principal residence or otherwise not qualify under the South Ward Rehabilitation Program.

City funds shall be secured by a mortgage that will be subordinate to any existing mortgage on the property. The City's mortgage shall not automatically be subordinated to any subsequent debt, mortgage refinance, or liens. However, the Department of Economic and Housing Development may authorize subordination to subsequent debt if such debt is used to make additional improvements to the home or if the new mortgage results in lower costs to the homeowner and the fees and charges to the homeowner by the proposed lender are deemed reasonable by the Department of Economic and Housing Development. Subordination to refinance mortgages resulting in "cash out" to the homeowner shall only be authorized if, based on an independent appraisal, the Department of Economic and Housing Development determines that sufficient value remains in the property to secure the City's mortgage.

e. Eligibility Criteria for Property Improvements. The home must be a residential structure containing one to three residential units and must be located in the City of Newark. Nonresidential buildings are not eligible for this Program.

The Department of Economic and Housing Development, in consultation with the Office of the South Ward Council Member, reserves the final judgment on all items being considered for rehabilitation. Modifications of these rehabilitation guidelines can only be made by the Department of Economic and Housing Development.

f. Authorization to Enter into Contract. The Director of the Department of Economic and Housing Development, or his designee, is authorized to enter into contracts and agreements for the implementation of this Program in the attached form. In addition, the Director of the Department of Economic and Housing Development, or his designee, may execute deeds or other necessary documents for participation in the South Ward Home Improvement Program with eligible South Ward Newark homeowner occupants upon their demonstration of compliance with all terms and regulations established by the Department of Economic and Housing Development. All contracts shall be attested by the City Clerk and approved as to form and legality by the Corporation Counsel.

g. Annual Report to Council. The Director of the Department of Economic and Housing Development shall provide the Municipal Council with an annual report each year identifying:

1. Names and number of contracts entered into.

2. The amount of said contracts.

3. The property addresses for such contracts.

4. Any additional requested information by the Municipal Council.

§ 2:10-6 (RESERVED) [1]

[1] Editor's Note: The Officer of Sustainability (Ord. 6 PSF-A, 1-5-2011; Ord. 6 PSF-C, 11-5-2015) was repealed by Ord. 6 PSF-E, 8-3-2016 and reestablished under the Department of Administration. See Chapter 15, Article II of this Title.

§ 2:10-7 LIVE NEWARK LOAN FORGIVENESS PROGRAM FOR ADVANCING CLOSING COSTS OR PROVIDING FUNDING FOR ELIGIBLE FACADE IMPROVEMENTS. [1]

[1] Editor's Note: Ord. No. 6PSF-B, 4-27-2021, amended Section 2:10-7 in entirety. Prior history includes Ord. No. 6PSF-D, 2-17-2016.

§ 2:10-7.1 Renewal of the Live Newark Loan Forgiveness Program.

[Ord. 6PSF-D, 2-17-2016 § 1; amended 4-27-2021 by Ord. No. 6PSF-B, 4-27-2021]

a. Live Newark Loan Forgiveness Program Renewed.

1. Renewal of Program. The Department of Economic and Housing Development is hereby authorized to renew, implement and administer the Live Newark Loan Forgiveness Program which shall be comprised of the following two (2) distinct loan programs through which an eligible applicant may obtain an interest-free, forgivable loan from the City: Closing Costs Program and a Facade Improvements Program, pursuant to the minimum requirements set forth herein. Modification of these minimum requirements may only be made by the Municipal Council.

2. Discontinuance of Renovations Program. The Department of Economic and Housing Development is hereby authorized to discontinue and terminate the Renovations Program of the Live Newark Loan Forgiveness Program.

3. Income Tax. No amount of any loan forgiven under the Live Newark Loan Forgiveness Program shall constitute income for purposes of income taxes, but rather, shall be in the nature of a gift.

4. Funding Source. The Live Newark Loan Forgiveness Program is funded from local and federal funding sources.

5. Definitions. Unless specified otherwise herein, the following terms shall have the designated meanings throughout this section:

(a) APPLICANT GENERALLY — Shall mean an individual who submits a written application for a loan pursuant to the Live Newark Loan Forgiveness Program.

(b) BORROWER(S) — Shall mean an eligible Individual to whom a loan is approved and extended by the City under the Live Newark Forgiveness Program pursuant to the terms of the loan documents. In no event may a borrower comprise a commercial entity of any kind.

(c) DEPARTMENT — Shall mean the City of Newark's Department of Economic and Housing Development.

(d) DIRECTOR — Shall mean the Deputy Mayor/Director of the Department of Economic and Housing Development or any designee(s) of the Director.

(e) INDIVIDUAL — Shall refer to one (1) person or more than one (1) person if the persons are applying for a loan under the Live Newark Loan Forgiveness Program together, except as otherwise expressly stated herein.

(f) LOAN ADMINISTRATOR(S) — Shall mean the Deputy Mayor/Director of the Department of Economic and Housing Development or the designee(s) of the Director who shall, inter alia, generally administer the Live Newark Loan Forgiveness Program and shall be the primary City contact for applicants and borrowers.

(g) LOAN AGREEMENT — Shall mean the written agreement to be executed by and between the City and the borrower(s) which shall include terms and conditions for the provision of the loan, including provisions for the borrower's release and indemnification of the City with regard to any claims arising out of the Live Newark Loan Forgiveness Program or any closing or project, as may be applicable, the forgiveness of the loan and the repayment of the loan, and any requirements or design standards for any projects to be implemented, as may be applicable, under the Live Newark Loan Forgiveness Program. Each loan granted pursuant to the Live Newark Loan Forgiveness Program shall be contingent upon the City's receipt of fully executed loan documents.

(h) MUNICIPAL COUNCIL — Shall mean the Municipal Council of the City of Newark.

(i) PROPERTY OR SUBJECT PROPERTY — Shall mean a residential property consisting of a 1-4 Family home within the boundaries of the City of Newark, including individual townhomes or condominium units, which shall be utilized only as a primary residence. In no event may a subject property include any commercial use at any time.

(j) TERM — Shall mean the term of the loan, commencing on the date that the loan agreement is duly executed by both parties ("Effective Date"), subject to any extension of any timeframe as set forth herein, through the full satisfaction of the loan.

6. Applications. A complete written application for each loan sought to be granted shall be submitted to the City's Division of Housing and Real Estate by the applicant. Applications shall be processed on a first-come, first-served basis after all required documentation has been submitted, subject to the sunset period and the prioritization, as set forth herein. Upon review of any application, the Loan Administrator(s) may request an applicant to submit any additional information as may be appropriate and necessary for an eligibility determination to be made.

7. No Discrimination. Applications for the Live Newark Loan Forgiveness Program shall be processed without regard to age, color, creed, marital status, national origin, sexual orientation, gender identity, political party affiliation, race or sex of the applicant(s).

8. Prioritization of Applications for Facade Improvement. Applications may be prioritized based upon the necessity for and/or overall potential impact of the proposed projects upon health, quality of life, the environment, and the beautification of the neighborhood, all to be determined at the reasonable discretion of the Deputy Mayor/Director of the Department of Economic and Housing Development.

9. Eligibility Limitation. Only one (1) application for each loan under the Live Newark Loan Forgiveness Program may be accepted from a borrower for each property, even if there are multiple owners of such property. A borrower may not be granted more than one (1) type of loan under the Live Newark Loan Forgiveness Program.

10. Persons Liable. The requirements of the loan documents shall be legally binding upon each borrower jointly and severally except that with respect to any forgiveness of the loan, only one (1) of the borrowers shall be required to utilize the subject property as his or her primary residence. In the event of the death of the borrower(s) prior to the full satisfaction of the loan, the requirements to re-pay any unsatisfied portion of the loan shall be legally binding upon all who succeed to the responsibilities of the borrower(s).

11. Sunset. The Live Newark Loan Forgiveness Program shall automatically terminate in five (5) years from the date of the passage of this section.[1] The Municipal Council shall not be required to undertake any affirmative action or task at that time in order to terminate the Live Newark Loan Forgiveness Program. All loan documents executed prior to the sunset date shall be of full force and effect in accordance with their terms.

[1] Editor's Note: Adopted 4-27-2021 by Ord. No. 6FSF-B, 4-27-2021.

12. Terms Applicable to All Loans. Refer to Subsection 2:10-7.4 for other terms and conditions which are applicable to all loans granted under the Live Newark Loan Forgiveness Program, in addition to any terms and conditions which shall be set forth in the loan documents.

13. Program Development and Administration. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to develop additional procedures, application materials, documents and program guidelines consistent with this section as may be necessary to implement and administer the Live Newark Loan Forgiveness Program as set forth herein.

14. Authorization to Enter into Agreements and Execute Documents. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby further authorized to enter into such agreements and execute such documents, including but not limited to the loan documents, as may be necessary and appropriate to accomplish the purpose of this section.

15. Annual Report to Municipal Council. The Deputy Mayor/Director of the Department of Economic and Housing Development shall provide the Municipal Council with an annual report identifying: (a) the number of loan agreements entered into during the preceding year; (b) the names and addresses of the borrower(s) of the loans extended during the preceding year together with the amounts of the respective loans; and (c) any additional information as may be requested by the Municipal Council.

16. No Conflict. No employee of the City shall be permitted to evaluate or approve an application, or any element thereof, for a loan under the Live Newark Loan Forgiveness Program which was submitted by himself or herself or his or her immediate family member or which pertains to a property upon which he or she or his or her immediate family member, respectively, resides.

17. Compliance with All Applicable Laws. The Live Newark Loan Forgiveness Program shall be administered in accordance and full compliance with all applicable federal, state and local laws, rules and regulations, including but not limited to, the Local Government Ethics Law, N.J.S.A. 40A:9-22.1, et seq.

§ 2:10-7.2 Closing Costs Program.

[Ord. 6PSF-D, 2-17-2016 § 2; amended 4-27-2021 by Ord. No. 6PSF-B, 4-27-2021; 9-20-2023 by Ord. No. 6PSF-E, 09-20-2023; 9-18-2024 by Ord. No. 6PSF-B, 09-18-2024]

a. Closing Costs Program.

1. Establishment. The Department of Economic and Housing Development is hereby authorized to renew, implement and administer a Closing Costs Program in order to advance (but not to reimburse) up to $20,000 ("Closing Costs Loan") for Eligible Closing Costs to eligible closing Cost applicants, as those terms are defined in this subsection of the Live Newark Loan Forgiveness Program, pursuant to the minimum requirements set forth herein. The borrower(s) shall be responsible for any closing costs exceeding $20,000. Modification of these minimum requirements may only be made by the Municipal Council.

2. Application. All applications for the Closing Costs Program shall, at a minimum, include: a copy of the applicant's most recent tax returns; pay stubs; employment information; Good Faith Estimate (GFE-HUD); and any other information required in the application forms.

3. Eligible Closing Cost Applicants. Individuals who shall have reasonably been determined to have the necessary resources to maintain ownership of the subject property shall be eligible for a Closing Costs Loan, subject to the terms and conditions set forth in this section.

4. Eligible Closing Costs. Eligible Closing Costs may consist of any one or a combination of the following items, as applicable, if said costs are to be payable at or immediately upon the transfer of the subject property from the seller to the applicant (as the buyer of the subject property) ("Closing"), subject to review by the Deputy Mayor/Director of the Department of Economic and Housing Development, at the Director's discretion, up to $20,000:

(a) Applicant's legal fees;

(b) Appraisal fees;

(c) Credit report fees;

(d) Title search fees;

(e) Survey fees;

(f) Flood determination fees;

(g) Courier fees;

(h) Title Insurance;

(i) Transfer taxes;

(j) Recording fees;

(k) Loan processing fees; and

(l) Home inspection fees, including asbestos inspection fees, lead paint inspection fees and wood destroying pest inspection fees.

5. Determination of Eligibility of Applicant by the Loan Administrator(s). The Loan Administrator(s) shall review the written application to determine the eligibility of the applicant for a loan under the Closing Costs Program. The Loan Administrator(s) shall advise the applicant in writing as to whether the application for a loan under the Closing Costs Program is being granted ("Closing Costs Determination Letter").

6. Disbursement of the Closing Costs Loan. Upon receipt of a Closing Costs Determination Letter indicating that an application for a loan under the Closing Costs Program has been approved, or thereafter upon request of the City, and the successful completion by the applicant of a first time homebuyer program approved by the City, the applicant shall promptly provide the Loan Administrator(s) with written instructions for the amount of $20,000 to be deposited into the applicant's attorney's trust account. The applicant shall be required to keep the Loan Administrator(s) apprised of the date for the closing and further, shall promptly advise the Loan Administrator(s) once the closing has been completed. If it is determined at the closing or thereafter that Eligible Closing Costs total or totaled less than $20,000, any excess funds shall be promptly returned to the City. The failure to promptly return any such excess funds shall be deemed an event of default hereunder. Following the closing, the City shall take all necessary steps to establish and record with the Essex County Registrar a mortgage to be secured by a lien against the subject property in the amount of the loan extended to the applicant under the Closing Costs Program.

7. Forgiveness or Repayment of the Closing Costs Loan. Closing Costs Loans shall be made in the form of ten (10) year interest-free, forgivable loans, up to the amount of $20,000. For each full, consecutive year following the closing that the borrower makes the subject property his or her primary residence, 10% of the amount of the total Closing Costs Loan shall be forgiven, up to 100%, until the Closing Costs Loan is fully satisfied. In the event that the borrower(s) sells or transfers the subject property, or the subject property is no longer the borrower's primary residence at any time prior to the satisfaction of the Closing Costs Loan, the borrower(s) shall notify the Loan Administrator(s) accordingly. The borrower(s) shall then be required to repay the pro-rated amount to the City in an accelerated manner upon the borrower's sale of the subject property from the sale proceeds or by prompt payment directly to the City, respectively. Upon full satisfaction of the Closing Costs Loan, the City shall discharge the mortgage upon the subject property in accordance with the terms of the loan documents.

By way of example, if the borrower(s) is disbursed $20,000 but only makes the subject property his or her primary residence for two (2) years following the closing (i.e. equivalent to $2,000 per year for a total of $4,000, the borrower would be required to repay the City the pro-rated sum of $16,000.

§ 2:10-7.3 Facade Improvement Program.

[Ord. 6PSF-D, 2-17-2016 § 3; amended 4-27-2021 by Ord. No. 6PSF-B, 4-27-2021; 9-20-2023 by Ord. No. 6PSF-D, 09-20-2023; 9-18-2024 by Ord. No. 6PSF-A, 09-18-2024]

a. Program for Facade Improvements.

1. Establishment. The Department of Economic and Housing Development is hereby authorized to establish and administer a Facade Improvement Program in order to provide funds up to $40,000 ("Facade Improvement Loan") for Eligible Facade Improvements to Eligible Facade Improvement applicants, as those terms are defined in this section, as part of the Live Newark Loan Forgiveness Program, pursuant to the minimum requirements set forth herein. The borrower(s) shall not be provided with funds or reimbursed for any costs associated with any facade improvement work exceeding $40,000. Modification of these minimum requirements may only be made by the Municipal Council.

2. Application. All applications for the Facade Improvement Program shall, at a minimum, include: a copy of the applicant's most recent tax returns; pay stubs; employment information; outstanding mortgages, judgments or any other liens upon the subject property; and any other information required in the application forms.

3. Eligible Facade Improvement Applicants. Individuals who meet the following criteria shall be eligible for a Facade Improvement Loan, subject to the terms and conditions set forth in this section:

(a) Current owner(s) and occupants of the subject property who shall have reasonably been determined to have the necessary resources to maintain ownership of the subject property;

(b) Resided upon the subject property for at least the three (3) consecutive years immediately preceding the submission of the application by the applicant;

(c) Property taxes upon the subject property are and remain fully paid and current;

(d) City sewer invoices for the subject property are and remain fully paid and current;

(e) City water invoices for the subject property are and remain fully paid and current; and

(f) Homeowner's insurance premiums for the subject property are and remain fully paid and current.

4. Pre-Determination of Eligibility of Applicant by the Loan Administrator(s). The Loan Administrator(s) shall review the written applications to determine the eligibility of the applicant(s) for a loan under the Facade Improvement Program and shall so advise the applicant(s) in writing. The determination of eligibility by the Loan Administrator is final, subject to review by the Deputy Mayor/Director of the Department of Economic and Housing Development. The applicant shall then submit a Facade Improvement Proposal which shall be subject to review and approval, as set forth herein.

5. Eligible Facade Improvements. Eligible Facade Improvements shall consist of repairs or improvements to the exterior of the subject property which are intended to beautify the community and may also satisfy existing City code violations or address any threats posed by the existing condition to the health, safety and welfare of the occupants of the subject property and/or community surrounding the subject property, including, but not limited to, the following, all of which shall be subject to the prioritization referenced herein:

(a) Exterior repairs to roofs, porches, windows, and doors;

(b) Painting or siding;

(c) Replacement of doors, windows or roofs;

(d) Driveway repairs.

6. Facade Improvement Proposal. Applicant(s) who have been pre-determined to be eligible for a loan under the Facade Improvement Program shall submit a written proposal setting forth a detailed description of the proposed project which shall have been prepared by a professional, licensed contractor; color photos depicting the existing condition of the area of the subject property upon which the proposed project is to be implemented; and a proposed project schedule setting forth, at minimum, a commencement date and a completion date for the work ("Facade Improvement Proposal"). Applicant(s) shall be encouraged to submit proposals which incorporate energy efficiency components or upgrades pursuant to the Home Performance with ENERGY STAR^® Program under the New Jersey Clean Energy Program. The Facade Improvement Proposal shall be subject to review, approval and comment by the Director.

7. Approval of the Proposed Facade Improvement Project. The Deputy Mayor/Director of the Department of Economic and Housing Development shall review all proposals submitted under the Facade Improvement Program to determine eligibility for the Facade Improvement Program. The Deputy Mayor/Director of the Department of Economic and Housing Development has the right to reject, in whole or in part, any Facade Improvement Proposal in the Director's reasonable discretion or to negotiate modifications of same for a project of lesser or greater magnitude than described in the Facade Improvement Proposal. The Deputy Mayor/Director of the Department of Economic and Housing Development shall issue a written determination setting forth the eligibility of the applicable proposal, together with any terms and conditions of its approval ("Proposal Review Letter"). The determination of eligibility by the Deputy Mayor/Director of Economic and Housing Development is final. Any approval of any Facade Improvement Proposal issued by the Deputy Mayor/Director of the Department of Economic and Housing Development shall be conditional, subject to the receipt of required permits and approvals. Additionally, no payment or reimbursement shall be made for any work that is conducted by an applicant(s) prior to the approval of the Facade Improvement Proposal.

8. Facade Determination Letter. Upon a determination regarding eligibility of the applicant and the issuance of a Proposal Review Letter, the Loan Administrator(s) shall advise the applicant in writing accordingly ("Facade Determination Letter"). If a loan is being granted under the Facade Improvement Program, the Facade Determination Letter shall also indicate the amount of the loan which is expected to be extended, which such amount may be increased (but only up to $40,000) or decreased based upon any additional review of the Facade Improvement Proposal or the subject property by the Deputy Mayor/Director of the Department of Economic and Housing Development, subject to the availability of funding ("Facade Improvement Loan Amount"). Prior to or upon any disbursement of the Facade Improvement Loan, the City shall take all necessary steps to establish and record with the Essex County Registrar a mortgage to be secured by a lien against the subject property in the amount of the Facade Improvement Loan, pursuant to the loan documents.

9. Facade Improvement Project. The borrower(s) shall implement the Facade Improvement Proposal as same has been approved by the Deputy Mayor/Director of the Department of Economic and Housing Development in the Proposal Review Letter (the "Facade Improvement Project"). The Facade Improvement Project shall not materially deviate from the approval issued by the Deputy Mayor/Director of the Department of Economic and Housing Development unless the borrower(s) has sought and received the written consent of the Deputy Mayor/Director of the Department of Economic and Housing Development.

10. Access. The Deputy Mayor/Director of the Department of Economic and Housing Development may elect to conduct a physical inspection of the subject property in the determination of whether a Facade Improvement Proposal is eligible for the Facade Improvement Program. In such event, the applicant shall grant the Deputy Mayor/Director of the Department of Economic and Housing Development with access to inspect the entire area of the subject property upon which the Facade Improvement Project is to be implemented, without the necessity for any further documentation. The Deputy Mayor/Director of Economic and Housing Development shall also be granted access to inspect the Facade Improvement Project during its implantation and upon completion, prior to any disbursement of the Facade Improvement Loan by the Loan Administrator(s). In the event that the Deputy Mayor/Director of Economic and Housing Development is denied reasonable access to conduct the inspections herein, the application submitted by the applicant shall be rejected and no disbursement under the Facade Improvement Program shall be made.

11. Implementation of the Facade Improvement Project. All work in connection with the Facade Improvement Project shall be undertaken in accordance with, and shall not materially deviate without the Director's written approval, from the Facade Improvement Proposal which was approved by the Deputy Mayor/Director's written approval, from the Facade Improvement Proposal which was approved by the Deputy Mayor/Director of Economic and Housing Development in a Proposal Review Letter. Additionally, all such work shall be conducted by a licensed, professional contractor and the Facade Improvement Project shall be implemented in full compliance with all applicable laws, rules, regulations, City ordinances and the applicable Redevelopment Plan, as amended. The borrower(s) shall be responsible for obtaining any permits which are required for the Facade Improvement Project. In no way shall approval by the Deputy Mayor/Director of Economic and Housing Development of a Facade Improvement Proposal substitute for appropriate approval by any City agencies for any permits that may be required. The Facade Improvement Project shall be fully implemented within twelve (12) months following the borrower's receipt of the first Facade Improvement Loan Disbursement, subject to two (2) extensions of up to three (3) months each to be granted in writing, at the discretion of the Deputy Mayor/Director of the Department of Economic and Housing Development.

12. Distribution of the Facade Improvement Loan. In order to obtain a disbursement of the Facade Improvement Loan in any amount, which shall be subject to the availability of funding, the borrower(s) shall submit a written request for payment to the Loan Administrator(s) together with any supporting documentation as the Loan Administrator(s) may require, including but not limited to, contracts or agreements, estimates, insurance, invoices, receipts and photos ("Facade Improvement Loan Requisition"). The Loan Administrator(s) shall be authorized to advance up to $10,000 to the borrower(s) in order to commence the Facade Improvement Project. Thereafter, all disbursements of the Facade Improvement Loan pursuant to the terms of the loan documents ("Facade Improvement Loan Disbursement") shall be subject to approval of any work for which any disbursement is sought by the Deputy Mayor/Director of the Department of Economic and Housing Development.

13. Inspection of the Facade Improvement Project. Except as otherwise provided herein, as a condition precedent to the disbursement of the Facade Improvement Loan, the Facade Improvement Project and any work undertaken in connection with same, shall be inspected and approved by the Deputy Mayor/Director of the Department of Economic and Housing Development. The Deputy Mayor/Director of Economic and Housing Development has the right to reject, in whole or in part, any Facade Improvement Project or any portion of same or to negotiate modifications as may be necessary. The Deputy Mayor/Director of the Department of Economic and Housing Development shall issue a letter setting forth the approval (or disapproval) of the Facade Improvement Project (or the renovation project, as further set forth herein), in whole or in part, as may be applicable, together with any terms and conditions of its approval ("Disbursement Approval Letter").

14. Forgiveness or Repayment of the Facade Improvement Loan. Facade Improvement Loans shall be made in the form of ten (10) year interest-free, forgivable loans, up to the amount of $40,000. For each full, consecutive year following the final Facade Improvement Loan disbursement that the borrower(s) makes the subject property his or her primary residence, 10% of the total Facade Improvement Loan amount shall be forgiven, up to 100%, until the Facade Improvement Loan is fully satisfied. In the event that the borrower sells or transfers the subject property, or the subject property is no longer the borrower's primary residence at any time prior to the full satisfaction of the Facade Improvement Loan, the borrower(s) shall notify the Loan Administrator(s) accordingly in writing. The borrower(s) shall then be required to repay the pro-rated amount to the City in an accelerated manner upon the borrower's sale of the subject property from the sale proceeds or by prompt payment directly to the City, respectively. Upon full satisfaction of the Facade Improvement Loan, the City shall discharge the mortgage upon the subject property in accordance with the terms of the loan documents.

By way of example, if the borrower(s) is disbursed a total of $40,000 but only makes the subject property his or her primary residence for three years following the final Facade Improvement Loan Disbursement (i.e. equivalent to $4,000 per year for a total of $12,000), the borrower(s) would be required to repay the City the sum of $28,000.

§ 2:10-7.4 Terms Applicable to Loans Granted Under the Live Newark Loan Forgiveness Program.

[Ord. 6PSF-D, 2-17-2016 § 4; 4-27-2021 by Ord. No. 6PSF-B, 4-27-2021]

a. Terms Applicable to Loans Granted.

1. Loan Documents Filed with City Clerk. A fully executed copy of the loan documents as well as a copy of each recorded mortgage and each discharged mortgage shall be filed with the City Clerk's office.

2. Recording of Mortgage upon Subject Property. Except as otherwise provided herein, prior to or upon the disbursement of any loan or any portion thereof under the Live Newark Loan Forgiveness Program, the City shall take all necessary steps to establish and record with the Essex County Registrar a mortgage to be secured by a lien against the subject property in the amount of the loan, at its cost. Once the loan is fully satisfied, either by forgiveness or repayment pursuant to the minimum requirements set forth in this section, the City shall promptly take all necessary steps to discharge the mortgage.

3. Rights of Prior Lenders. The City acknowledges that the borrower(s) may have a previously existing mortgage or loan from a lending institution or other such lender ("Prior Lender") secured by a lien against the subject property. Any such prior lender shall have no obligation to commence or complete any project or to meet any other requirements of this section or of the loan documents. Additionally, for the protection of any prior lender, any subsequent mortgage or loan from the City secured by a lien against the subject property shall be subject to and limited by, and shall not defeat or render invalid in any way, any validly pre-existing mortgage or loan which is secured by a prior lender against the subject property, including the re-financing of any such pre-existing mortgage or loan.

4. Default. In addition to any default under the loan documents or elsewhere hereunder, events of default shall include the following:

(a) Information contained in the application submitted by the applicant is knowingly or willfully false, incorrect or misleading;

(b) Borrower(s) continuously fails to pay City taxes on the subject property prior to full the satisfaction of the loan;

(c) Borrower(s) sells or transfers the subject property, or the subject property is no longer the borrower's primary residence, at any time prior to the full satisfaction of the loan;

(d) Borrower(s) fails to promptly repay the loan pursuant to the loan documents, as may be applicable;

(e) Borrower(s) files a petition in bankruptcy for an arrangement pursuant to applicable bankruptcy laws;

(f) Borrower(s) permits an entry of a judgment in foreclosure or the issuance of a Deed in Lieu of Foreclosure against the subject property;

(g) Subject property incorporates a commercial use at any time prior the full satisfaction of the loan;

(h) Borrower(s) fails to obtain and/or maintain the required insurance, as may be applicable; or

(i) Borrower(s) fails to utilize the property in full compliance with all applicable laws, rules, regulations, City ordinances, the HOME Program and/or the applicable Redevelopment Plan, as may be amended.

In addition to the above as well any defaults set forth under the loan documents, the following shall also be deemed events of default with specific regard to the Facade Improvement Program and the Renovations Program:

(a)	Borrower(s) fails to implement the project as approved by the Deputy Mayor/Director of the Department of Economic and Housing Development without the prior written consent of the Deputy Mayor/Director of the Department of Economic and Housing Development;
(b)	Borrower(s) fails to implement the project in full compliance with all applicable laws, rules, regulations, City ordinances and the applicable Redevelopment Plan, as may be amended; or
(c)	Borrower(s) fails to fully implement the project within 12 months following the borrower's receipt of the first loan disbursement, subject to the provisions herein.

5. Notice and Right to Cure. In the event that the borrower(s) is in default pursuant to this section and/or the loan documents, the City shall so notify the borrower(s) in writing ("Notice of Default") and the borrower(s) shall thereafter have an opportunity to cure the default. In the event that the default cannot be cured, the City may terminate the loan agreement and shall be immediately entitled to seek to enforce any remedy available to it at law or in equity as may be necessary and appropriate to collect, in an accelerated manner, any unpaid loan amount as set forth in a payoff statement to be generated by the City taking into account any forgiveness of the loan, or to enforce the performance of any other obligation of the redeveloper hereunder. Any failure of or delay by the City to take any such action shall not be deemed a waiver.

6. Remedies. In an event of default, the City may exercise any one or any combination of the remedies available to it at law or in equity or pursuant to the terms of the loan documents as may be necessary and appropriate to collect, in an accelerated manner, any unsatisfied loan amount or to enforce the performance of any other obligation of the borrower(s).

7. Release of the City. Borrower(s) shall fully and forever expressly release the City from any and all claims or actions it may have or allege to have against the City arising out of or in relation to the Live Newark Loan Forgiveness Program or any closing or any project implemented in connection therewith, as may be applicable.

8. Hold Harmless and Indemnification of the City. Each borrower(s) shall, at its sole cost and expense, indemnify, defend and satisfy all judgments, and hold the City, its officers, employees, agents, servants and representatives, harmless from and against any and all claims, actions judgments, costs, penalties, liabilities, damages, losses and expenses arising out of or resulting from the Live Newark Loan Forgiveness Program or any closing or any project implemented by the borrower(s) in connection therewith, as may be applicable.

9. Insurance Requirements. The borrower(s) shall obtain and maintain any insurance that shall be required by the loan documents, including as such insurance may benefit the City.

10. Covenants Running with the Land. The provisions of the loan agreement shall constitute covenants running with the land with respect to the subject property and shall bind all purchasers and owners of the property, their heirs, assigns and all persons claiming by, through or under their heirs, executors, administrators and assigns for the duration of the agreement as same is set forth therein.

11. Notices. All notices must be in writing and personally delivered or sent by certified mail, return receipt requested, to the addresses in the loan agreement. Address changes may be made upon written notice.

§ 2:10-8 EMPLOYEE OWNERSHIP LOAN AND LOAN GUARANTEE PROGRAM.

§ 2:10-8.0 Definitions.

[Ord. 6PSF-A, 3-20-2019]

As used in this section:

DEPARTMENT

Means the Department of Economic and Housing Development.

DIRECT SHARE OWNERSHIP PLAN

Means an arrangement in which a portion of the highest class of voting stock of a corporation or voting membership interest of a limited liability company is held directly by all tenured employees. Such stock or membership interest may be nontransferable and callable upon termination or retirement of the employee.

ELIGIBLE TRANSACTION

Means the qualified transfer of some or all of the stock of a corporation or membership interest of a limited liability company to an employee stock ownership plan, employee ownership trust, or direct share ownership plan. An eligible transaction includes an acquisition of stock or membership interest by an employee ownership association, as an intermediary, for the purpose of a qualified transfer to an employee stock ownership plan, employee ownership trust, or direct share ownership plan.

EMPLOYEE OWNERSHIP ASSOCIATION

Means a corporation, limited liability company, trust, or other entity that acts on behalf of the employees of an existing employer for the purpose of achieving the qualified transfer of some or all of the stock or membership interest of the employer to ownership by an employee stock ownership plan, employee ownership trust, or direct share ownership plan. An employee ownership association includes a corporation or limited liability company with an existing employee stock ownership plan, employee ownership trust, or direct share ownership plan that acts on behalf of the employees of another employer for the purpose of achieving a qualified transfer by means of a consolidation or merger.

EMPLOYEE OWNERSHIP LOAN

Means any of the following:

a. Any loan to a corporation, limited liability company, employee stock ownership plan, employee ownership trust, or employee ownership association, to the extent that the proceeds are used to acquire employer stock or membership interest of an employer for a qualified transfer.

b. Any loan to a corporation or limited liability company to the extent that, within 30 days, stock or membership interest of an employer are transferred to an employee stock ownership plan, employee ownership trust, or direct share ownership plan in an amount equal to the loan and in accordance with the terms of a qualified transfer.

EMPLOYEE OWNERSHIP TRUST

Means a trust that holds the highest class of voting stock of a corporation or voting membership interest of a limited liability company and that meets the requirements under section V, and may be a non-charitable trust, perpetual trust, or both.

EMPLOYEE STOCK OWNERSHIP PLAN

Means an employee stock ownership plan as defined in Section 4975(e)(7) of the Internal Revenue Code.

EMPLOYER

Includes 2 or more persons who are treated as a single employer under Sections 414(b), (c), (m), or (o) of the Internal Revenue Code.

QUALIFIED TRANSFER

Means the transfer of any amount of stock of a corporation or membership interest of a limited liability company to an employee stock ownership plan, employee ownership trust, or direct share ownership plan if all of the following apply:

a. The stock or membership interest has voting power equal to or in excess of the class of stock or membership interest of the employer having the greatest voting power.

b. The stock or membership interest has dividend rights equal to or in excess of the class of stock or membership interest of the employer having the greatest dividend rights.

c. If the transfer is to a direct share ownership plan, the largest amount of stock or membership interest transferred to any employee does not exceed a multiple of 10 times the smallest amount of stock or membership interest transferred to any tenured employee.

TENURED EMPLOYEE

Means any employee or independent contractor who has provided at least 1,000 hours of services to the employer within the immediately preceding twelve-month period, unless a lower number of hours is established in the terms of the employee stock ownership plan, employee ownership trust, or direct share ownership plan.

TOTAL COST

Means all reasonable and necessary costs to be incurred in the course of an eligible transaction, including the fair market value of the business interest to be acquired, as well as costs for any additional construction, land acquisition, improvements, equipment, pertinent rights and easements, and associated technical, engineering, legal, and financial services.

§ 2:10-8.1 Establishment of an Employee Ownership Loan and Loan Guarantee Program.

[Ord. 6PSF-A, 3-20-2019]

There is established in the Office of the Mayor, Department of Economic and Housing Development, an Employee Ownership Loan and Loan Guarantee Program that shall utilize Employee Ownership Loans and Loan Guarantees as follows:

§ 2:10-8.2 Employee Ownership Loans and Loan Guarantees.

[Ord. 6PSF-A, 3-20-2019; amended 1-8-2020 by Ord. No. 6PSF-B, 01-08-2020]

a. Establishment of Program. The Department shall establish an Employee Ownership Loan and Loan Guarantee Program ("Employee Ownership Loan Program") under this Section, to be administered by Invest Newark [IN], to make Employee Ownership Loans and Employee Ownership Loan Guarantees to eligible applicants.

b. Application. Any corporation, limited liability company, trust, or employee ownership association with its principle place of business in Newark, may apply to Invest Newark [IN] to be evaluated and considered for participation in the Employee Ownership Loan Program.

c. Loans and Loan Guarantees. Invest Newark [IN] may contract with an applicant under Subsection (b) to do any one of the following:

1. Make an employee ownership loan to the applicant for an amount which shall not exceed 40% of the total cost.

2. Guarantee up to 100% of employee ownership loans made to the applicant by third party lenders. All loan guarantees made to an applicant under this subsection c,2 shall not exceed 80% of the total cost.

d. Preference. Applications for the Employee Ownership Loan Program shall be prioritized where:

1. At least 51% of employees of the subject business are Newark residents; or

2. The subject business is pending closure that could cause a significant loss of employment to the City of Newark.

e. Study. Invest Newark [IN] shall conduct a cost-benefit analysis of a potential transition to employee ownership. The application shall proceed if a determination is made by Invest Newark [IN] that the transition of a business to employee ownership would have a reasonable chance of creating benefits to the public interest of the City of Newark greater than the total costs and risks.

f. Advisory Board. Invest Newark [IN] shall establish an Advisory Board constituted by representatives of local government, nonprofits and community groups, businesses, and employee ownership professional service providers. This board shall advise on policy concerning the characteristics of employee-owned businesses that may qualify under the program.

g. Timeliness. No later than 30 days after receiving a completed application, as identified in subsection b., Invest Newark [IN] shall decide whether an applicant can participate in the Employee Ownership Loan Program and can receive a loan as provided under subsection c. Invest Newark [IN] shall inform the applicant of its decision in writing. If Invest Newark [IN] requests that an applicant supplement its application by submitting additional information, then Invest Newark [IN] shall have an additional 15 days after receiving the additional information to decide and comply with the decision notification process outlined above.

§ 2:10-8.3 Budget.

[Ord. 6PSF-A, 3-20-2019]

The Newark Employee Ownership Loan and Loan Guarantee program shall be allocated an initial operating budget of $200,000 which shall be procured from funds secured by the Department of Economic and Housing Development as set forth below:

Bus. Unit	Dept. ID	Div/Proj.	Activity	Acct.#	Budget Ref.
NW026	BS			32100	B2018

During the first quarter of the year, the Newark Employee Ownership Loan and Loan Guarantee Program shall submit a proposed annual operating budget to the Mayor and annual financial statements for consideration at a budget hearing to be conducted by the Mayor and/or the Business Administrator. The Mayor and/or Business Administrator of the City of Newark shall determine, upon conclusion of the hearings and subject to the availability of funds, the appropriation for the Newark Employee Ownership Loan and Loan Guarantee Program to be included in the year's corresponding City budget and shall be a line item in the Department of Economic and Housing Development Budget.

§ 2:10-8.4 Employee Ownership Trusts.

[Ord. 6PSF-F, 6-15-2016 § 3]

a. The Employee Ownership Trust must fulfill all of the following:

1. Purposes.

(a) Subject to subsections a,1(b), (c), (d) and (e), the Employee Ownership Trust has the exclusive purposes of creating employee ownership by obtaining and holding stock or membership interest of an employer and promoting the financial and nonfinancial interests of all tenured employees.

(b) The exclusive purposes of an Employee Ownership Trust may include preserving the ability of all tenured employees to exercise the voting rights of the trust on a one person, one vote basis. This paragraph a,1(b) does not exempt the trustee from an obligation to carry out the express terms and purposes of the trust in the case of a conflict with the majority decision of all tenured employees.

(c) The exclusive purposes of an Employee Ownership Trust may refer to both current and prospective tenured employees.

(d) The exclusive purposes of an Employee Ownership Trust may include maintaining any of the purposes under subsections (a)(1)(A), (B), and (C) in perpetuity, as well as preserving the employer in perpetuity.

(e) An Employee Ownership Trust may prioritize certain exclusive purposes over others.

2. No principal or income of the Employee Ownership Trust is distributed or allocated to any party other than a tenured employee, except that principal and income of the trust may be distributed to one or more charitable organizations. The Employee Ownership Trust may distribute principal to current and past tenured employees if the trust sells stock or membership interest of the employer by establishing a cutoff date for the inclusion of past tenured employees.

3. Principal and income of the Employee Ownership Trust that is distributed or allocated to employees is administered proportionally to all tenured employees on the basis of hours worked, salary, seniority, or any combination of these factors.

b. Trustee liability.

1. An Employee Ownership Trust may limit trustee liability if the stock or membership interest of the employer are voted by the trustee in accordance with the direction of all tenured employees and on a one person, one vote basis and all of the following apply:

(a) The trustee votes all employer stock or membership interest as a unit in accordance with the majority decision of all tenured employees.

(b) Before voting, the trustee furnishes each tenured employee with the information statement and other materials provided to shareholders or members in connection with the shareholder or member meeting, together with a form on which confidential voting directions may be given to the trustee or, if the trustee is not independent of the employer, to an independent 3rd party designated by the trustee, who tabulates votes and provides instructions to the trustee. The trustee or a 3rd party may not disclose the confidential voting directions of any tenured employee to the employer.

2. This paragraph b does not exempt the trustee from an obligation to carry out the express terms and purposes of the trust in the case of a conflict with the majority decision of all tenured employees.

c. An Employee Ownership Trust is not disqualified solely because the terms of the trust do any of the following:

1. Authorize the trustee to employ an entity, such as a corporation, a limited liability company, or another trust, to hold the stock or membership interest of the employer.

2. Require that the employer obtain membership m one or more nonprofit associations.

3. Require that the employer pay market rate wages or benefits or both.

4. Require that the employer retain a percentage of annual net income as permanent reserves that shall never be distributed to employees.

5. Impose other requirements that promote the long-term financial health of the employer and the continued ability of the employer to provide high-quality jobs under conditions of employee ownership to all current and prospective tenured employees.

6. Appoint a trust protector or co-trustee or both to enforce the trust and approve amendments to the trust.

[Ord. 6PSF-A, 3-20-19]

§ 2:10-8.5 Minority-, Women-, and Veteran-Owned Business Certification.

[Ord. 6PSF-A, 3-20-19]

The determination of Minority, Women and Veteran-Owned Businesses shall be made by the following additional criteria, consistent with the applicable City Code § 2:2-28.3, and state rules and regulations: N.J.S.A. 52:32-3) and N.J.A.C. 17:46:

a. For purposes of satisfying the criteria for minority-, women-, and veteran-owned business certification, an employee-owned business shall qualify as such, if the total stock or membership interest held by qualifying individuals, through an employee stock ownership plan, employee ownership trust, or direct share ownership plan, including stock or membership interest held by qualifying individuals outside of any such plan, is greater than 50%.

b. Alternatively, a company shall qualify as a minority-, women-, or veteran-owned business, if:

1. more than 50% of the company's stock or membership interest is owned by an employee stock ownership plan or an employee ownership trust; and

2. the trustee is a qualifying individual, or a majority of the board of trustees, or equivalent body, are qualifying individuals; or

3. a majority of the Board of Directors are qualifying individuals.

c. Alternatively, a company shall qualify as a minority-, women-, or veteran-owned business, if:

1. more than 50% of the company's stock or membership interest is owned by an employee stock ownership plan, an employee ownership trust, or a direct .share ownership plan; and

2. the chief executive officer of the company is a qualifying individual; and

3. a majority of the board of directors are qualifying individuals.

d. If any of the above requirements are met, the company shall qualify as a minority-, women-, or veteran-owned business.

e. A company may apply to the Mayor's Office of Affirmative Action and Set-Aside Programs for written guidance that a plan for transition of a company to employee ownership, if adopted, would result in certification, or maintenance of a company's existing certification, as a minority-, women-, or veteran owned business.

§ 2:10-9 AFFORDABLE HOUSING DEED RESTRICTION INCLUDED ON SALE OF UP TO FIFTY (50%) PERCENT OF THE CITY'S PROPERTY STOCK INCLUDING VACANT LAND.

§ 2:10-9.1 Purpose and Effect.

[Added 1-18-2023 by Ord. No. 6PSF-A, 01-18-2023]

a. Purpose. It is the purpose of this section to create and promote the preservation of Affordable Housing throughout the City of Newark by imposing a deed restriction on the sale of City-owned property in any given calendar year.

b. Effect. As of the effective date of this section, this section shall require that up to fifty (50%) percent of City-owned property, as defined herein, sold by the City of Newark, subject to Municipal Council approval, in any given calendar year shall remain affordable for use and occupancy by households earning sixty (60%) percent or less of AMI through the imposition of an Affordable Housing Deed Restriction that will remain in effect for a period of thirty (30) years. Of the properties sold pursuant to this section, Certified Non-Profit Housing Developers, as defined herein, shall be afforded a right of first refusal to purchase said properties pursuant to the terms and conditions set forth herein.

§ 2:10-9.2 Definitions.

[Added 1-18-2023 by Ord. No. 6PSF-A, 01-18-2023]

For the purposes of this section, the following words and phrases shall have the following meanings:

AFFORDABLE

Means sales price less than or equal to the amount at which total monthly housing costs, as specified in the rules, would total not more than thirty (30%) percent of household income for a household whose income is the maximum allowable for an eligible household.

AFFORDABLE HOUSING

Means the Affordable Housing property that is restricted by the AHR for occupancy and affordable to households with incomes that are at or below sixty (60%) percent of Area Median Income by family size as established by the United States Department of Housing and Urban Development (HUD).

AFFORDABLE HOUSING LOT (AHL)

Means any or all unimproved properties, referred to as lots, in the City which are subject to this section. Any property constructed on an Affordable Housing lot shall be considered an Affordable Housing property.

AFFORDABLE HOUSING PROPERTY (AHP)

Means all single and multiple family dwelling units, including all improvements thereon, which are subject to this section.

AFFORDABLE HOUSING RESTRICTION (AHR) ACKNOWLEDGMENT

Means that deed restriction document, that will remain in effect for a period of affordability of thirty (30) years, executed and recorded by the purchaser of an Affordable Housing property, or an Affordable Housing lot sold by the City in which the purchaser(s) acknowledges and agrees to comply with the AHR.

AREA MEDIAN INCOME (AMI)

Means the median gross household income for the City of Newark as calculated and adjusted for household size on an annual basis by HUD.

CERTIFIED NONPROFIT HOUSING DEVELOPERS

Means those nonprofit organizations that meet the following criteria: (1) the organization is a bona fide nonprofit as evidenced by the fact that it is exempt from federal income tax under 26 USC § 501(c)(3); (2) the organization has demonstrated an ongoing commitment to the provision of affordable housing for low and moderate income City residents, and to preventing the displacement of such residents; (3) the organization has demonstrated an ongoing commitment to community engagement as evidenced by relationships with neighborhood-based organizations; and (4) the organization has demonstrated the capacity (including, but not limited to, the legal and financial capacity) to effectively acquire and manage residential real property at multiple locations in the City.

The City shall place each Certified Nonprofit Housing Developer who meets with above criteria on a Certified Nonprofit Housing Developers List, which will remain in effect for one calendar year. The City shall solicit new applications for Certified Nonprofit status at least once each calendar year, at which time new and existing Certified Nonprofits shall be eligible to apply for a certification and placed on the City's Certified Nonprofit Housing Developers List for that respective calendar year.

CERTIFIED NONPROFIT HOUSING DEVELOPERS LIST

Means a list of Certified Nonprofits published on the City of Newark's website and made available upon request. The list shall include contact information for each Certified Nonprofit including but not limited to the name of the Certified Nonprofit, a mailing address, an email address, and a telephone number.

CITY

Means the City of Newark, New Jersey and hereinafter referred to as "City", "City of Newark" or "Municipality".

DEED RESTRICTION

Means the restriction document recorded against the Affordable Housing Property to apply the AHR and ensure that the property is sold to purchasers who meet the Area Median Income and who agree to comply with the AHR to ensure that the property remains affordable for a period of thirty (30) years in compliance with this section. The deed restriction shall incorporate, as an exhibit, an Option to Purchase, in order to clearly provide for procedures whereby the City may acquire the AHP in the event of a foreclosure or a deed in lieu of foreclosure.

HOUSING AND URBAN DEVELOPMENT (HUD)

Means the United States Department of Housing and Urban Development.

IN LIEU PAYMENT

Means a payment made by a purchaser of Property in lieu of complying with the affordability requirements of this section which shall be deposited into the City's Affordable Housing Trust Fund prior to the closing on the sale of the property.

PROPERTY

Shall mean the City-owned Affordable Housing property and/or Affordable Housing lots which are subject to this section, subject to the AHR.

PUBLIC AUCTION

Means any auction to sell real property as authorized by the Municipal Council pursuant to N.J.S. 40A:12-13.

PURCHASER

Means a person(s), firm, partnership, corporation, trust, organization, non-profit, limited liability company or other entity, or its successors or assigns who enters into a purchase contract with the City of Newark to purchase property, approved for sale by the Municipal Council, pursuant to the terms of this section.

SALE OR SELL

Means an act by which City of Newark Municipal Council conveying, transferring or disposing of City-owned property by deed or otherwise, whether through a single transaction or a series of transactions, to owners that meet the Area Median Income and agree to keep the property affordable for a period of thirty (30) years.

§ 2:10-9.3 Adoption of Affordable Housing Restriction.

[Added 1-18-2023 by Ord. No. 6PSF-A, 01-18-2023]

As of the Effective Date of this section, the following City of Newark Affordable Housing Restriction (the "AHR") shall be imposed on up to fifty (50%) percent of the property stock sold by the City of Newark to a purchaser in any given calendar year in which this section remains in effect.

a. Affordable Housing Restriction (AHR) on Ownership, Use and Occupancy.

The AHR, as defined by this section constitutes a covenant that runs thirty (30) years from the date of recordation with the title to the property as a burden thereon and shall be binding on the owner, and on the heirs, personal representatives, assigns, lessees and licensees and any transferee of the owner. The duration of this deed restriction and covenant shall extend for a period of thirty (30) years. This deed restriction covered under the section shall be administered by the City of Newark Department Economic and Housing Development, or its designee, and shall be enforceable by any appropriate legal or equitable action including but not limited to specific performance, injunction, abatement or eviction of non-complying owners, users or occupants, or such other remedies and penalties as may be provided under New Jersey Law or the ordinances of the City of Newark.

b. Limitation on Amendments to Affordable Housing Restriction. Although this section may be amended from time to time, the AHR recorded against a particular Affordable Housing Property or Affordable Housing Lot may not be amended without the consent of the owner and the approval of the City of Newark Municipal Council. Subsequent amendments to this section that are less restrictive that those in effect at the time when the AHR was recorded against a particular Affordable Housing property or Affordable Housing lot shall apply to such Affordable Housing. Subsequent amendments to this section that are more restrictive than those in effect at the time when the AHR was recorded against a particular Affordable Housing property or Affordable Housing lot shall not be applied against the Affordable Housing without the written consent of the then owner, and upon such consent shall be recorded as an amendment to the AHR for the subject Affordable Housing property or Affordable Housing lot.

c. Transfers of Property. Should an owner who purchased a property, pursuant to the terms of this section, desire to sell or transfer ownership or control of the property, the owner must notify the City's Department of Economic and Housing Development in writing and receive express prior written approval of the transfer of ownership or control of the property and the proposed new owner. Upon approval by the City, an agreement by and between the City and the new owner will be executed to bind the new owner for the remainder of the Affordability Period.

§ 2:10-9.4 Adoption of Rules and Regulations Governing Properties Subject to Affordable Housing Restriction.

[Added 1-18-2023 by Ord. No. 6PSF-A, 01-18-2023]

a. Deed Restriction.

1. The purchaser of any Affordable Housing property that is subject to this section must execute and deliver an original fully executed copy of a deed restriction on the City of Newark's standard form at the time of closing on the sale of the Affordable Housing unit. The deed restriction and any amendments thereto must be recorded in the property records of Essex County Register of Deeds and Mortgages. A purchaser of Affordable Housing property will not receive a Certification of Occupancy (CO) and/or a Certificate of Code Compliance (CCO), until the City has received a fully executed copy of a deed restriction.

2. The purchaser of any Affordable Housing lot that is subject to this section must execute and deliver an original fully executed copy of a deed restriction on the City of Newark's standard form prior to issuance of a building permit for the construction of a dwelling unit on the Affordable Housing lot. Any dwelling unit constructed on an Affordable Housing lot shall be deemed an Affordable Housing property and subject to all the requirements of an Affordable Housing property. The deed restriction and any amendments thereto must be recorded in the property records of Essex County Register of Deeds and Mortgages.

3. For any developments that have contractually agreed to abide by this section, the developer or owner of such property shall record a deed restriction on the City of Newark's standard form in accordance with the conditions and restrictions set forth in the contractual agreement between the developer/owner and the City of Newark.

4. A purchaser of any Affordable Housing property and/or any Affordable Housing lot that is subject to this section shall not transfer the Affordable Housing property and/or any Affordable Housing lot to subsequent purchasers without the approval of the Newark Municipal Council. If the sale is approved by the Newark Municipal Council, subsequent purchasers of any Affordable Housing property and/or any Affordable Housing lot must execute an Acknowledgment of Deed Restriction prior to closing the purchase and recorded in the property records of Essex County Register of Deeds and Mortgages.

5. The deed restriction shall contain a provision which requires the deed restriction to be canceled by the City of Newark in the event of a foreclosure by a financial institution holding a first position purchase money deed of trust on the Affordable Housing property.

6. An Option to Purchase shall be granted by all lenders to the City of Newark to redeem the Affordable Housing property in the event of default by purchasing the property from the holder of the trustee's deed at the redemption price plus reasonable costs of the holder. If the City of Newark does not exercise this option within thirty (30) days after issuance of the trustee's deed, the deed restriction shall be canceled by the City of Newark.

§ 2:10-9.5 In Lieu of Payment.

[Added 1-18-2023 by Ord. No. 6PSF-A, 01-18-2023]

a. A purchaser of property under this chapter may, with the approval of the Office of City Planning, make a voluntary cash payment into the City of Newark's Affordable Housing Trust Fund in lieu of having a deed restriction being placed on property sold by the City under this section.

b. The amount of the payment-in-lieu figure is one hundred eighty thousand dollars ($180,000.00) per Affordable Housing property.

c. The amount of the payment-in-lieu figure is one hundred eighty thousand dollars ($180,000.00) per Affordable lot.

d. The Municipal Council, in consultation with the City of Newark, Department of Economic and Housing Development, should review this figure every five (5) years.

e. The Office of City Planning is authorized to approve voluntary cash payment-in-lieu only upon written findings, supported by the record, that such a contribution will further the housing policies of the City of Newark more than a deed restriction being placed on property sold by the City.

f. The opportunity to make a voluntary payment in lieu of constructing income-restricted units is not intended to be and should not be construed as a right available to purchasers of City-owned Property. The policy of this chapter favors a deed restriction being placed on property sold by the City.

g. The Office of City Planning approval of any payment-in-lieu shall be conditioned upon the purchaser entering into an agreement that details the manner in which the payment-in-lieu commitment will be fulfilled.

h. A purchaser of City-owned property will not receive a Certification of Occupancy (CO) and/or a Certificate of Code Compliance (CCO), until the City has received the agreed upon payment in lieu of the deed restriction.

i. Ten (10%) percent of the voluntary payment in lieu of construction acquired shall be applied or expended within the ward where the property being sold is located. No moratorium or suspension of this allocation requirement may be authorized, except upon resolution adopted by Municipal Council.

j. The Municipal Council, at its discretion and by ordinance, has the authority to make changes to the amount of the payment-in-lieu on a specific development project.

§ 2:10-9.6 Right of First Refusal.

[Added 1-18-2023 by Ord. No. 6PSF-A, 01-18-2023]

a. Right of Interest to Participate in Potential Purchase of Property.

1. When the City intends to sell property, before going to market, the City shall send notice, pursuant to Subsection 2:10-9.6a2, to all Certified Nonprofit Housing Developers included on the City's Certified Nonprofit Housing Developers List of the City's intent to sell.

2. Notice Requirement. The City shall comply with the following notice requirements when selling Property:

(a) Provide written e-mail notice to all Certified Nonprofits included on the Certified Nonprofit Housing Developers List by 11:59 P.M. on the same date.

(b) All notices shall include the following minimal requirements:

(1) A statement that the City intends to sell the property;

(2) The address and block and lot of the property the City intends to sell; and

(3) The minimum sales price for the property the City intends to sell.

3. Upon receipt of a notice, all interested Certified Nonprofit Housing Developers shall, by no later than 11:59 p.m. on the fifth full calendar day from the date the City notified the Certified Nonprofit Housing Developers of its intent to sell, notify the City, via e-mail, as to whether or not they wish to exercise their interest in a right of first refusal on the property, as outlined in Subsection 2:10-9.7.

4. If the City does not receive any notice of interest to purchase property from any Certified Nonprofit Housing Developer within five (5) calendar days as set forth herein, the City may immediately proceed to offer the property for sale to, and solicit offers of purchase from, third-party purchasers.

b. Right of First Refusal.

1. Before the City may sell a property, the City shall provide every Certified Nonprofit Housing Developer who previously provided a statement of interest to acquire the property pursuant to Subsection 2:10-9.6, an opportunity to purchase such property at a price and terms that represent a bona fide offer of sale.

(a) Upon receipt of a bona fide purchase offer for a property, the City shall submit to each Certified Nonprofit Housing Developer(s), who previously provided a statement of interest to acquire the property pursuant to Subsection 2:10-9.6, a copy of the bona fide purchase offer within two (2) days of receipt of such purchase offer. The bonified offer shall include (1) The minimum asking price and terms of the sale received from a third-party purchaser; and (2) a statement as to whether a purchase contract with a third-party purchaser exists for the sale of the property.

(b) The Certified Nonprofit Housing Developer(s) shall have five (5) days to present their highest and best offer price, upon substantially similar terms and conditions as the third-party bona fide offer.

(c) The City shall choose the highest and best offer price received from interested Nonprofit Housing Developer(s). If the terms of the offer to purchase from the Certified Nonprofit Housing Developers are not substantially similar to the offer to purchase from a third-party, the City shall notify the Certified Nonprofit Housing Developers of the rejection of the offer on such a basis. The City shall have the obligation to define the reasoning as to the rejection, setting forth all reasons and terms in which the offer was not substantially similar.

(d) If no offers are received from Certified Nonprofit Housing Developer(s) the City shall sell the property to the third-party purchaser pursuant to the terms and conditions of the bona fide offer of sale.

§ 2:10-9.7 Transfers Without City Approval.

[Added 1-18-2023 by Ord. No. 6PSF-A, 01-18-2023]

If it is determined that the purchaser of any property transferred the property to a third party prior to the thirty (30) year covenant restriction without the City's approval; the City can elect to enforce one of the following repercussions, which shall be clearly set forth in the deed restriction:

a. The property may revert back to the City.

1. If the property is reverted back to the City by the purchaser's failure to comply with this section and/or the deed restriction; the purchaser shall be liable for all fees, payments, and any other monetary encumbrances inflicted on the City due to purchaser's failure to comply with this section and/or breach of the deed restriction;

OR

b. The City shall be entitled to the difference in Fair Market Value at the time the property was sold minus the amount the City sold it to the purchaser.

1. The purchaser shall be liable for all fees, payments, and any other monetary encumbrances inflicted on the City due to the purchaser's failure to comply with this section and/or breach of the deed restriction.

§ 2:10-9.8 Exceptions.

[Added 1-18-2023 by Ord. No. 6PSF-A, 01-18-2023]

The following shall be exempt from the provisions of this section:

a. City-owned property sold to Newark residents:

1. Property being transferred from the City to Newark residents will not require an affordable housing deed restriction, so long as the transferee owns and occupies the property for five (5) consecutive years after the closing and transfer of said property to the transferee from the City.

(a) Property will have a deed restriction detailing that transferee must occupy the property for a minimum of five (5) consecutive years after the closing and transfer of property to the transferee from the City.

(b) If it is determined that the transferee did not occupy the property for a total of five (5) consecutive years after the closing and transfer of property or sold the property prior to five (5) year minimum set forth above, the property shall automatically revert back to the City.

(1) If the property is reverted back to the City by the transferee's failure to comply with this section and/or the deed restriction, the transferee shall be liable for all fees, payments, and any other monetary encumbrance inflicted on the City due to the transferee's breach of this section and/or deed restriction.

2. The residents must comply with the following:

(a) Shall be low income to moderate income, as defined in Section 3(b)(2) of the Housing Act of 1937, which is determined annually by HUD.

(b) Must have lived in the City for a consecutive five (5) years immediately preceding the transfer of the property.

b. City-owned Property that is sold through a public auction.

§ 2:10-9.9 Landbank.

[Added 1-18-2023 by Ord. No. 6PSF-A, 01-18-2023]

All provisions in this section will apply to those properties transferred by the City of Newark Municipal Council to the City's Landbank, excluding those properties transferred prior to the effective date of this section.

§ 2:10-10 HOMEOWNERSHIP REVITALIZATION PROGRAM.

§ 2:10-10.1 Program Established.

[Added 5-3-2023 by Ord. No. 6PSF-C, 05-03-2023]

a. There is hereby established a Homeownership Revitalization Program ("Program") under this section. Subject to the terms of this section, the Program under this section shall be administered by the Deputy Mayor/Director of the Department of Economic and Housing Development and/or her designee or an administrative agent that is contracted by the City (the "Program Administrator"), under such additional rules, regulations and procedures as may be adopted by the Program Administrator ("Rules and Regulations"). All such Rules and Regulations adopted by the Program Administrator shall be kept on file with the City Clerk and made available by the Department of Economic and Housing Development.

b. The Program shall be designed and implemented in order to promote the sale and redevelopment of in rem City-owned property requiring construction of a one-, two-, three-, or four-unit owner-occupied residential structure, subject to the applicable Redevelopment Plan, the terms and conditions of a Redevelopment Agreement, and all applicable laws, rules and regulations, including the Newark Zoning and Land Use Ordinance and the New Jersey Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., as amended and supplemented (the "LRHL" or "Act").

1. The Program Administrator shall have the responsibility for monitoring the properties to ensure compliance with the program.

2. Without limiting the generality of the foregoing, the Municipal Council may adapt the Program for use in connection with the City of Newark Land Bank so long as long the City follows all of the requirements set forth in the City’s Municipal Code § 18:15-1, et seq., establishing the City of Newark Land Bank and complies with the intent and purpose of this Program.

§ 2:10-10.2 Application.

[Added 5-3-2023 by Ord. No. 6PSF-C, 05-03-2023]

a. A. The Program Administrator is authorized to prepare Program applications ("Applications") designed to provide all the necessary information needed by the City to fairly and completely evaluate development proposals for participation in the Program. The Program Administrator shall approve all Applications, and every development proposal is subject to City Council approval pursuant to the process set forth in § 2:10-10.4a. Applicants approved by City Council for participation in the Program are hereafter referred to as "Developer(s)." Development proposals approved by City Council are hereafter referred to as "Project(s)."

b. Any Newark Resident, which is an individual who has resided in the City for a period of five (5) continuous years prior to the enactment of this section[1] or has resided in the City for a minimum of five (5) continuous years before having to move out due to a gentrification and/or displacement may submit an application to the Program Administrator to be evaluated and considered for participation in this program.

[1] Editor's Note: Section § 2:10-10 was adopted 5-3-2023 by Ord. No. 6PSF-C, 05-03-2023.

c. The applicant shall work with the Program Administrator to submit their application to the City of Newark. The application shall, among other things, include cost estimates for the redevelopment of the in rem City-owned property, which shall include the work required to bring the property into conformance with all applicable state and local codes.

d. The applicant, with the assistance of the Program Administrator, shall submit proof of acquisition financing and shall demonstrate the financial means to redevelop the property. Proof of financial capability shall include, but not be limited to, the purchaser's own personal finances, a bank loan, and a commitment from lender to finance construction sufficient to bring the property up to City code standards.

1. Source of Redevelopment Funds: Applicant must submit proof of acquisition funding including but not limited to the following: personal funds, bank and/or mortgage company loan(s), State or other financial sources that cover the cost for redevelopment. Basic eligibility is determined by gross annual household income to participate in the Homeownership Revitalization Program. Such income includes, but is not limited to, salary, wages, alimony, social security benefits, pension, business income and actual or imputed earning assets which include bank accounts, stocks, bonds or other securities.

2. Source of Financing Acquisition of Property: Must demonstrate ability to acquire property through savings accounts or other liquid assets.

§ 2:10-10.3 Selection Criteria.

[Added 5-3-2023 by Ord. No. 6PSF-C, 05-03-2023]

a. A. The selection criteria for participation in the program shall be established by the Program Administrator in the Rules and Regulations.

b. Notwithstanding the above, the selection shall be on a first come first-serve basis and the City will not take any more than twelve (12) applications per property. No individual(s), either independently or with another individual, shall be permitted to submit more than one (1) application at a time for each property that is being sold. No one individual, whether independently or with another, shall be permitted to purchase more than one property under this program.

§ 2:10-10.4 Requirements for Transfer of Properties.

[Added 5-3-2023 by Ord. No. 6PSF-C, 05-03-2023]

a. Transfers of In Rem City-Owned Properties Required by Ordinance.

All conveyances of in rem City-owned properties shall be accomplished through an ordinance, adopted by the Newark Municipal Council, authorizing the sale and redevelopment of the property to the Developer(s), and further authorizing the Mayor and/or the Deputy Mayor/Director of the Department of Economic and Housing Development to enter into and execute and record with the County Registrar’s Office the City’s form of redevelopment agreement and form of Quitclaim Deed, which must contain a deed restriction that clearly states that the purchaser or any subsequent purchaser shall take the property subject to all of the terms of the redevelopment agreement and that the property being sold shall be subject to the City’s right of reverter for any failure to comply with said terms and conditions of the redevelopment agreement.

The Newark Municipal Council may authorize one ordinance to transfer multiple properties to multiple Developers. If the City chooses to transfer the properties in this manner, the ordinance shall authorize the Mayor and/or the Deputy Mayor/Director of the Department of Economic and Housing Development to enter into and execute the City’s form of redevelopment agreement, which shall include an exhibit that sets forth the address of the properties, the blocks and lots, the names of the Developer(s) that are purchasing the properties, and sales price pursuant to N.J.S.A. 40A:12A-8(g) and further authorizes the Mayor and/or the Deputy Mayor/Director of the Department of Economic and Housing Development to enter into and execute the City’s form of Quitclaim Deed for each of the properties set forth in the exhibit to the redevelopment agreement.

b. Redevelopment Agreements.

All prospective buyers of in rem City-owned properties under this program must enter into redevelopment agreements with the City to purchase properties under this program. The redevelopment agreements shall, among other things, include the following:

1. All prospective buyers of in rem City-owned properties under this program must be Newark residents and must commit to reside in the properties for a minimum of ten (10) years.

2. Notwithstanding any City law to the contrary including, but not limited to the City Code § 2:10-1.1d, and pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., as amended and supplemented, and N.J.S.A. 40A:12A-8(g) the minimum purchase price of property under this section shall be at such prices and upon such terms as the City deems reasonable.

3. The transfer of in rem City-owned property to the prospective purchasers shall be by private sale, through a Quitclaim deed, for the purpose of redevelopment requiring construction of a one-, two-, three-, or four-unit owner-occupied residential structure, with or without additional retail use, subject to the applicable Redevelopment Plan, the terms and conditions of the Redevelopment Agreement, and all applicable laws, rules and regulations, including the Newark Zoning and Land Use Ordinance.

4. All redevelopment of in rem City-owned properties must commence within three (3) months after acquiring title and all work must be completed within twelve (12) months thereafter. One six (6) month extension may be granted at the conclusion of the 12-month period at the discretion of the Deputy Mayor/Director of the Department of Economic and Housing Development.

5. The Conveyance of each property to prospective purchasers shall be through a Quitclaim Deed which shall contain: resale and/or use restrictions for a minimum period of ten (10) years from the date of issuance of the Certificate of Occupancy for each respective Project; and a Right of Reverter whereby the City may elect to seek reverter of title to the lot(s) back to the City in the event that the respective Redevelopers fail to comply with the material terms and conditions of the Redevelopment Agreement, unless the Deputy Mayor/Director of the Department of Economic and Housing Development consents otherwise in writing.

6. In the event a Developer's construction of a Project falls short of Developer's completion obligations under the Redevelopment Agreement, the Department of Economic and Housing Development, in its sole and absolute discretion, may release all City Lot(s) not yet conveyed to the Developer from the Redevelopment Agreement so that such City lot(s) may be made available to the City for alternative redevelopment plans, unless the Deputy Mayor/Director of the Department of Economic and Housing Development consents otherwise in writing.

7. Such other provisions that the City deems appropriate.

§ 2:10-10.5 Sunset Provision.

[Added 5-3-2023 by Ord. No. 6PSF-C, 05-03-2023]

No in-rem City-owned properties shall be sold under this section more than two (2) years following the date of final adoption of this section.[1]

[1] Editor's Note: Section 2:10-10 was adopted 5-3-2023 by Ord. No. 6PSF-C, 05-03-2023.

§ 2:10-11 UNCONSCIONABLE RENT INCREASE.

§ 2:10-11.1 Definitions.

[Added 6-7-2023 by Ord. No. 6PSF-C, 06-07-2023; amended 8-2-2023 by Ord. No. 6PSF-H, 08-02-2023]

DISPLACEMENT BY FACT

Shall mean a tenant is displaced by Landlord due to an increase in rent, and the eviction proceeding has been adjudicated by a court of competent jurisdiction and has been determined that such increase was unconscionable.

DISPLACEMENT BY FORCE

Shall mean a tenant is displaced when the Landlord attempts to constructively evict the tenant in a manner that includes but is not limited to the following:

a. A history of unconscionable rental increases on the property; and/or

b. Failure to meet minimum standards of safety, wellbeing, and sanitation, including but not limited to the presence of mold, rodent infestation, adequate heat and water supply.

UNCONSCIONABLE RENT

Shall mean any rental increase for residential properties including but not limited to market and unsubsidized units, whose rental increases are exceedingly harsh or unreasonable that exceed the increase in the landlord’s expenses; and is not comparable to rents charged at similar properties. For properties that have entered into a redevelopment agreement and/or financial agreement whose rent exceeds the approved pro-forma is per se unconscionable. This shall not apply to residential units that are statutorily exempt from Rent Control, pursuant to N.J.S.A. 2A:42-84.1-84.6 and/or units that are controlled and governed by the United States Department of Housing and Urban Development (HUD).