[Ord. No. 2002-23; Ord. No. 2003-05; Ord.
No. 2005-11; Ord. No. 2012-08; Ord. No. 2014-03; Ord. No. 2015-10; Ord.
No. 2015-16; Ord. No. 2017-02; Ord. No. 2018-04]
As used in this article, the following terms shall have the
meanings indicated:
ABANDONED PROPERTY
Any building or structure which is not at present legally
occupied or at which all lawful business or construction operations
or residential or other occupancy have substantially ceased, and which
is in such condition that it cannot legally be re-occupied without
repair or rehabilitation, including but not limited to any property
meeting the definition of abandoned property in N.J.S.A. 55:19-81;
provided, however, that any habitable property where all building
systems are in sound working order, where the building and grounds
are maintained in good condition, and which is being actively marketed
by its owner for sale or rental, shall not be deemed an abandoned
property for purposes of this article.
BUILDING
Any building, or structure, or part thereof, whether used
for human habitation or otherwise, and includes any outbuildings,
and appurtenances belonging thereto.
INTERESTED PARTIES
Includes any resident of the Borough, any owner or operator
of a business within the Borough, or any organization representing
the interests of residents, business owners or otherwise engaged in
furthering the revitalization and improvements of the neighborhood
in which the property is located.
OWNER
Includes the title holder, any agent of the title holder
having authority to act with respect to an abandoned property, any
foreclosing entity that has filed a notice with the Municipal Clerk
pursuant to the provisions of C. 46:10B-51 (P.L. 2008, c. 127, Sec.
17 as amended by P.L. 2009, c. 296), or any other entity determined
by the public officer of the Borough to have authority to act with
respect to the property.
PROPERTY
Any building or structure and the land appurtenant thereto.
PUBLIC OFFICER
A person designated or appointed pursuant to P.L. 1942, N.J.S.A.
40:48-2.5, or any officer of the municipality qualified to carry out
the responsibilities set forth in N.J.S.A. 55:19-78, et seq., as designated
by resolution of the Governing Body.
QUALIFIED REHABILITATION ENTITY
An entity organized or authorized to do business under the
New Jersey statutes which shall have as one of its purposes the construction
or rehabilitation of residential or nonresidential buildings, the
provision of affordable housing, the restoration of abandoned property,
the revitalization and improvement of urban neighborhoods, or similar
purpose, and which shall be well qualified by virtue of its staff,
professional consultants, financial resources, and prior activities
to carry out the rehabilitation of abandoned buildings, as set forth
under N.J.S.A. 55:19-80.
[Ord. No. 2002-23; Ord. No. 2003-05; Ord.
No. 2005-11; Ord. No. 2012-08; Ord. No. 2014-03; Ord. No. 2015-10; Ord.
No. 2015-16; Ord. No. 2017-02; Ord. No. 2018-04]
A. Except as provided under N.J.S.A. 55:19-83, any property that has
not been legally occupied for a period of six months and which meets
any of the following additional criteria may be deemed to be abandoned
property upon a determination by the public officer, that:
(1)
The property is in need of rehabilitation in the reasonable
judgment of the public officer, and no rehabilitation has taken place
during that same six-month period; or
(2)
Construction was initiated on the property and was discontinued
prior to completion, leaving the building unsuitable for occupancy,
and no construction has taken place for at least six months as of
the date of a determination by the public officer; or
(3)
At least one installment of property tax remains unpaid and
delinquent on that property as of the date of a determination by the
public officer; or
(4)
The property has been determined to be a nuisance by the public
officer, in accordance with N.J.S.A. 55-19-82 for one or more of the
following reasons:
(a)
The property has been 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 the welfare, including the economic welfare, of
the residents of the area in close proximity to the property, and
the owner has failed to take reasonable and necessary measures to
remedy the conditions.
B. A property which contains both residential and nonresidential space
may be considered abandoned pursuant to N.J.S.A. 55:19-78, et seq.,
so long as 2/3 or more of the total net square footage of the building
was previously legally occupied as residential space and none of the
residential space has been legally occupied for at least six months
at the time of the determination of abandonment by the public officer.
[Ord. No. 2002-23; Ord. No. 2003-05; Ord.
No. 2005-11; Ord. No. 2012-08; Ord. No. 2014-03; Ord. No. 2015-10; Ord.
No. 2015-16; Ord. No. 2017-02; Ord. No. 2018-04]
A. The Governing Body may direct the public officer to identify abandoned
property for the purpose of establishing an abandoned property list
throughout the Borough, or within those parts of the Borough as the
Governing Body may designate. Each item of identified abandoned property
shall include the tax block and lot number, the name of the owner
of record, if known, and the street address of the property lot.
B. The public officer shall establish and maintain a list of abandoned
property, known as the "abandoned property list." The Governing Body
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.
C. Notice to Owner.
(1)
The public officer shall establish the abandoned property list
or any additions/deletions thereto in the official newspaper designated
by the Borough. Within 10 days after publication in said newspaper,
the public officer 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 abandoned property list. The published and mailed
notices shall identify the property determined to be abandoned setting
forth the owner of record and, 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 mail to any mortgage,
servicing organization, or property tax processing organization that
receives a duplicate copy of the tax bill pursuant to N.J.S.A. 54:4-64(d).
(2)
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 N.J.S.A. 40:48-2.7,
and shall specify 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 Clerk, County of
Mercer. This filing shall have the same force and effect as a formal
notice under N.J.S.A. 2A:15-6. The notice shall be captioned with
the name of the Borough as "Plaintiff" and the name of the property
owner as "Defendant," as though an action had been commenced by the
Borough against the owner.
D. An owner or lienholder may challenge the inclusion of his/her/its
property on the abandoned property list by appealing that determination
to the Governing Body 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 inclusion of a property
on the abandoned property list. For good cause shown, the Governing
Body shall accept a late filing of an appeal. Within 30 days of receipt
of a request for an appeal of the findings contained in the notice,
the Governing Body 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 asserting that the property is not an
abandoned property, 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,
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 herein and in N.J.S.A. 55:19-54.
The Governing Body 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 therefore.
E. The property owner may challenge an adverse determination of an appeal
with the Governing Body, by instituting, in accordance with the New
Jersey Court Rules, a summary trial proceeding in the Superior Court,
County of Mercer. Such action shall be instituted within 20 days of
the date of the notice of decision mailed by the Governing Body. The
sole ground for appeal and new hearing before the Superior Court shall
be that the property in question is not an abandoned property as that
term is defined in N.J.S.A. 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.
F. The Borough shall promptly remove any property from the abandoned
property list that has been determined by the Governing Body on appeal
not to be abandoned and may, in its discretion, remove properties
from said list whenever the Governing Body deems such removal appropriate
under the circumstances.
G. The abandoned property list shall become effective, and the Borough
shall have the right to pursue any legal remedy with respect to properties
on the list at any time after at least one property has been placed
on the list in accordance with the provisions of this article, and
following the expiration of the period for appeal with respect to
that first property or upon the denial of an appeal brought by the
property owner of that first property.
[Ord. No. 2002-23; Ord. No. 2003-05; Ord.
No. 2005-11; Ord. No. 2012-08; Ord. No. 2014-03; Ord. No. 2015-10; Ord.
No. 2015-16; Ord. No. 2017-02; Ord. No. 2018-04]
A. Any interested party may submit a written request to the Municipal
Clerk for the Governing Body, asserting that any property within the
Borough should be included on the abandoned property list. The written
request must specify 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 Governing Body shall provide
a written response to the party, either indicating that the property
will be added to the abandoned property list or otherwise stating
the Governing Body's reasons for not adding the property. For the
purposes of this article, the term "interested parties" shall include
any resident of the Borough, any owner or operator of a business within
the Borough, or any organization representing the interests of residents,
business owners or otherwise engaged in furthering the revitalization
and improvement of the neighborhood in which the property is located.
B. Any interested party may participate in a redetermination hearing
regarding the inclusion of property on the abandoned property list.
Upon written request by any interested party, the Governing Body shall
provide that party with at least 20 days' notice of any such hearing.
The party shall provide the Governing Body 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.
[Ord. No. 2002-23; Ord. No. 2003-05; Ord.
No. 2005-11; Ord. No. 2012-08; Ord. No. 2014-03; Ord. No. 2015-10; Ord.
No. 2015-16; Ord. No. 2017-02; Ord. No. 2018-04]
A. Sale of tax lien on abandoned property.
(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 Borough 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 appeal, as appropriate.
(2)
The Borough 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 Borough 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 N.J.S.A. 55:19-55.
The Borough may further require that the purchaser or assignee post
a bond of the Borough to guarantee the rehabilitation or repair of
the property. 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 the redemption of the property.
(3)
The public officer may waive a requirement to post a bond imposed
by the Borough 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 herein.
(4)
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, in effect for the time period when the amounts were expended.
(5)
The tax sale certificate purchaser, assignee or transferee,
under the auspices and with the authority of the Borough, 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 Borough 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 Borough purchases the certificate
pursuant to N.J.S.A. 54:5-34, then the Borough 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 Borough lien delinquencies and subsequent Borough liens,
including interest, shall be returned by the Tax Collector of the
Borough.
B. If the Borough 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 N.J.S.A. 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
Borough 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 Borough
in order to ensure performance. The amount and conditions of the bond
shall be determined by the public officer.
C. The cost of remediation incurred by the Borough pursuant to this
article, 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 Borough, except for
Borough taxes, lien and assessments on any lien imposed pursuant to
the Spill Compensation and Control Act, N.J.S.A. 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 county clerk register of deeds and mortgages, as appropriate,
in the county in which the property is located.
D. 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 abandoned property list pursuant to this section
shall be prima facie evidence of the intent of the owner to continue
to maintain the property as abandoned property.
E. The clearance, development, redevelopment, or repair of property
being maintained as an abandoned property pursuant to this chapter
shall be a public purpose and public use, for which the power of eminent
domain may be exercised, pursuant to N.J.S.A. 20:3-1, et seq.
[Ord. No. 2002-23; Ord. No. 2003-05; Ord.
No. 2005-11; Ord. No. 2012-08; Ord. No. 2014-03; Ord. No. 2015-10; Ord.
No. 2015-16; Ord. No. 2017-02; Ord. No. 2018-04]
A. An owner may remove a property from the abandoned property list prior
to sale of the tax sale certificate by paying all taxes and Borough
liens due, including interest and penalties and:
(1)
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, N.J.S.A. 55:19-55 and
posting cash or a bond to cover the cost to 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
(2)
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, N.J.S.A. 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 of the property.
B. 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 or order, then the cash or bond shall be forfeited
by the Borough 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.
C. If a property, which an entity other than the municipality has purchased
or taken assignment from the municipality of a tax sale certificate,
is placed on the abandoned property list, the property shall be removed
from the list if the owner of the certificate pays all municipal taxes
and liens due on the property within 30 days after the property is
placed on the list; provided, however, that if the owner of the certificate
fails to initiate foreclosure proceedings within six months after
the property was first placed on the list, the property shall be restored
to the abandoned property list.
[Ord. No. 2002-23; Ord. No. 2003-05; Ord.
No. 2005-11; Ord. No. 2012-08; Ord. No. 2014-03; Ord. No. 2015-10; Ord.
No. 2015-16; Ord. No. 2017-02; Ord. No. 2018-04]
A. 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 the furtherance of rehabilitation work
as authorized by said permits.
B. If an entity or person other than the Borough has purchased or taken
assignment for the Borough of a tax sale certificate on a property
that has not been legally occupied for a period of six months, that
property shall not be placed on the abandoned property list if:
(1)
The owner of the certificate has continued to pay all Borough
taxes and liens on the property in the tax year when due; and
(2)
The owner of the certificate takes action to initiate a foreclosure
proceeding within six months after the property is eligible for foreclosure
pursuant to N.J.S.A. 54:5-86, and diligently pursues foreclosure proceedings
in a timely fashion thereafter.
C. Upon request of a purchaser or assignee of a tax sale certificate
seeking to bar the right of redemption on an abandoned property pursuant
to N.J.S.A. 54:5-86, the public officer or the Borough Tax Collector
shall, in a timely fashion, provide the requester with a Certificate
of Abandonment that the property satisfies the definition of an abandoned
property in accordance with this chapter.
[Ord. No. 2002-23; Ord. No. 2003-05; Ord.
No. 2005-11; Ord. No. 2012-08; Ord. No. 2014-03; Ord. No. 2015-10; Ord.
No. 2015-16; Ord. No. 2017-02; Ord. No. 2018-04]
A. When a person other than the Borough 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.
B. Notwithstanding the provisions of N.J.S.A. 54:5-104.34, when the
Borough 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 Borough has
acquired the tax sale certificate pursuant to N.J.S.A. 55:19-56, an
action 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. 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:
(1)
Posts cash or a bond equal to the cost of remediating the conditions
because of which the property was determined to be abandoned pursuant
to N.J.S.A. 55:19-55, as determined by the Court; or
(2)
Demonstrates to the Court that the conditions because of which
the property was determined to be abandoned pursuant to N.J.S.A. 55:19-55
have been remedied in full.
[Ord. No. 2002-23; Ord. No. 2003-05; Ord.
No. 2005-11; Ord. No. 2012-08; Ord. No. 2014-03; Ord. No. 2015-10; Ord.
No. 2015-16; Ord. No. 2017-02; Ord. No. 2018-04]
A. The Borough 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 the abandoned property list.
B. The Governing Body shall establish criteria for eligibility to bid
on properties at the sale, which may include, but need not be limited
to:
(1)
Documentation of the bidder's ability to rehabilitate or otherwise
reuse the property consistent with Borough plans and regulations,
commitments by the bidder to rehabilitate or otherwise reuse the property,
consistent with Borough plans and regulations;
(2)
Commitments by the bidder to rehabilitate or otherwise reuse
the property, consistent with municipal plans and regulations;
(3)
Commitments by the bidder to take action to foreclose on the
tax lien by a date certain; and
(4)
Such other criteria as the Governing Body 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.
C. The Governing Body may establish minimum bid requirements for a special
tax sale that are less than the full amount of the taxes, interest
and penalties due to help ensure that the properties will be rehabilitated
or otherwise utilized in a manner consistent with the public interest.
D. The Governing Body may combine properties in said special tax sale
into bid packages and require that bidders place a single bid on each
package, rejecting any and all bids on individual properties that
are submitted.
E. The Governing Body may sell said properties subject to the provision
that, if the purchaser fails to carry out any commitment that has
been set forth as a condition of sale 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 Borough, and any amount
paid by the purchaser at the special tax sale shall be forfeit to
the Borough.
F. In the event there are two or more qualified bidders for any property
or bid package in a special tax sale, the Borough may designate the
unsuccessful qualified bidder whose bid was closest to the successful
bid, as an eligible purchaser. In the event that the selected purchaser
of that property or bid package fails to meet any of the conditions
of sale established by the Borough pursuant to this article and their
interest in the property or properties reverts to the Borough, the
Borough may subsequently designate the entity previously designated
as an eligible purchaser as the winning bidder for the property or
properties, and assign the tax sale certificates to that entity on
the basis of that entity's bid at the special tax sale, subject to
the terms and conditions of the special tax sale.
G. The Borough 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 Borough pursuant to this article. Nothing shall
prohibit the Borough from holding a special tax sale on the same day
as a standard or accelerated tax sale.
[Ord. No. 2002-23; Ord. No. 2003-05; Ord.
No. 2005-11; Ord. No. 2012-08; Ord. No. 2014-03; Ord. No. 2015-10; Ord.
No. 2015-16; Ord. No. 2017-02; Ord. No. 2018-04]
A. When a person or entity other than the Borough 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 just six months following the
date of the sale of the tax sale certificate.
B. When the Borough is the purchaser at tax sale of any property on
the abandoned property list pursuant to N.J.S.A. 54:5-34, an action
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.
(1)
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 a bond equal to the cost of remediating the conditions
because of which the property was determined to be abandoned pursuant
to N.J.S.A. 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 have been remedied in
full.
[Ord. No. 2002-23; Ord. No. 2003-05; Ord.
No. 2005-11; Ord. No. 2012-08; Ord. No. 2014-03; Ord. No. 2015-10; Ord.
No. 2015-16; Ord. No. 2017-02; Ord. No. 2018-04]
A. Transfer of Possession.
(1)
A summary action or otherwise to transfer possession and control
of abandoned property in need of rehabilitation to the Borough may
be brought by the Borough in the Superior Court, County of Mercer.
If the Court shall find that the property is abandoned pursuant to
N.J.S.A. 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 Borough to take possession and control of the property and develop
a rehabilitation plan.
(2)
If the Borough is granted possession, it 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 N.J.S.A. 55:19-92.
(3)
Failure by the owner, mortgage holder or lien holder to submit
plans for rehabilitation to the municipality, obtain appropriate construction
permits for rehabilitation or, in the alternative, submit formal applications
for funding the cost of rehabilitation to local, state or federal
agencies providing such funding within that six-month period shall
be deemed prima facie evidence that the owner has failed to take any
action to further the rehabilitation of the property.
B. A complaint filed pursuant to N.J.S.A. 55:19-84 and Subsection
A of this section 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.
C. Within 10 days of filing a complaint, the plaintiff shall file a
notice of lis pendens with the County of Mercer recording officer.
(1)
At least 30 days before filing the complaint, the Borough 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 N.J.S.A.
55:19-81.
(2)
The notice shall provide that unless the owner or a party in
interest prepares and submits a rehabilitation plan to the appropriate
Borough officials, the Borough will seek to gain possession of the
building to rehabilitate the property and the associated cost shall
be a lien against the property, which may be satisfied by the sale
of the property, unless the owner applies to the Court for reinstatement
of control of the property as provided in N.J.S.A. 55:19-92.
(3)
After the complaint is filed, the complaint shall be served
on the parties in interest in accordance with the New Jersey Rules
of Court.
(4)
After serving the notice of intention pursuant to this section,
the Borough 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 N.J.S.A. 55:19-89.
D. Any owner may defend against a complaint filed pursuant to this article
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.
(1)
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 section 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.
E. 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.
(1)
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
Borough may apply to the Court to have the owner's bond forfeited,
possession of the building transferred to the Borough to complete
the rehabilitation plan and authorization to use the bond proceeds
for rehabilitation of the property.
(2)
The owner shall provide monthly reports to the Borough 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.
(3)
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.
F. If an owner is unsuccessful in defending against a complaint filed
pursuant to this article, 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 N.J.S.A.
55:19-87. 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 lienholder with an extension of time for good cause shown.
If the Court approves any such mortgage holder or lienholder's plan,
it shall designate that party to be in possession of the property
for purposes of ensuring its rehabilitation and ruse and may appoint
the public officer to act as a monitor of the party's compliance.
The mortgage holder or lienholder, as the case may be, shall provide
quarterly reports to the Court and the Borough on its activities and
progress toward rehabilitation and reuse of the property.
G. If the mortgage holder or lienholder fails to carry out any material
step in the approved plan, then the public officer shall notify the
Court, which may order the bond forfeit, grant the Borough possession
of the property, and authorize the Borough to use the proceeds of
the bond for rehabilitation of the property. Any sums incurred or
advanced for the purpose of rehabilitating the property by a mortgage
holder or lienholder granted possession of a property pursuant to
this article, including Court costs and reasonable attorney's fees,
may be added to the unpaid balance due that mortgage holder or lienholder,
with interest calculated at the same rate set forth in the note or
security agreement; or, in the case of tax lienholder, at the statutory
interest rate for subsequent liens.
[Ord. No. 2002-23; Ord. No. 2003-05; Ord.
No. 2005-11; Ord. No. 2012-08; Ord. No. 2014-03; Ord. No. 2015-10; Ord.
No. 2015-16; Ord. No. 2017-02; Ord. No. 2018-04]
A. If no mortgage holder or lienholder meets the conditions of N.J.S.A.
55:19-88, then the Borough shall submit a plan to the Court which
conforms with the provisions of N.J.S.A. 55:19-87. The plan shall
designate the entity which shall implement the plan, which may be
the Borough or that entity designated in accordance with the provisions
of N.J.S.A. 55:19-90.
B. The Court shall grant the Borough possession of the property if it
finds that:
(1)
The proposed rehabilitation and reuse of the property is appropriate
and beneficial;
(2)
The Borough is qualified to undertake the rehabilitation and
reuse of the property; and
(3)
The plan submitted by the Borough represents a realistic and
timely plan for the rehabilitation and reuse of the property.
C. The Borough 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 article,
the Court may consult with qualified parties, including the Department
of Community Affairs, and, upon request by a part in interest, may
holding a hearing on the plan.
[Ord. No. 2002-23; Ord. No. 2003-05; Ord.
No. 2005-11; Ord. No. 2012-08; Ord. No. 2014-03; Ord. No. 2015-10; Ord.
No. 2015-16; Ord. No. 2017-02; Ord. No. 2018-04]
A. The Borough may exercise its right under N.J.S.A. 55:19-78, et al.,
directly, or may designate a qualified rehabilitation entity to act
as its designee for the purpose of exercising the Borough's rights
where that designation will further the rehabilitation and reuse of
the property consistent with the Borough's plans and objectives. This
designation shall be made by resolution of the Governing Body.
B. Regardless of whether the Borough exercises its rights directly or
designates a qualified rehabilitation entity pursuant to this article,
while in possession of a property, the Borough shall maintain, safeguard,
and maintain insurance on the property. Notwithstanding the Borough's
possession of the property, nothing in this chapter 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.
C. If the Borough has been granted possession of a property pursuant
to N.J.S.A. 55:19-89, the Borough 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.
D. 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 article shall be considered legal control
of the property.
E. The Court may approve the borrowing of funds by the Borough to rehabilitate
the property and may grant a lien or security interests with priority
over all other liens or mortgages other than municipal liens. For
the purposes of this article, the cost of rehabilitation shall include
reasonable non-construction costs such as professional fees, including
but not limited to architectural fees, or construction permit fees
customarily included in the financing of the rehabilitation of residential
property.
F. The Borough shall file a notice of completion with the Court, and
shall also serve a copy on the owner and any mortgage holder or lienholder,
at such time as the Borough 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 that property takes
place consistent with the plan.
G. Notwithstanding the granting of possession to the Borough, nothing
in this chapter 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 Borough 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.
[Ord. No. 2002-23; Ord. No. 2003-05; Ord.
No. 2005-11; Ord. No. 2012-08; Ord. No. 2014-03; Ord. No. 2015-10; Ord.
No. 2015-16; Ord. No. 2017-02; Ord. No. 2018-04]
A. An owner may petition for reinstatement of the owner's control and
possession of the property at any time after one year from the grant
of possession, but no later than 30 days after the Borough 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 Borough 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
Borough, or affect any of the terms or conditions under which the
Borough has applied for or received financing for the rehabilitation
of the property.
B. Any petition for reinstatement of the owner's control and possession
of the property 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 Borough 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 Borough
liens outstanding on the property; 2) all costs incurred by the Borough
in bringing action with respect to the property; 3) any costs incurred
by the Borough not covered by grants or loans to be assumed or repaid
pursuant to this article; 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, County
of Mercer, pending disposition of the petition.
[Ord. No. 2002-23; Ord. No. 2003-05; Ord.
No. 2005-11; Ord. No. 2012-08; Ord. No. 2014-03; Ord. No. 2015-10; Ord.
No. 2015-16; Ord. No. 2017-02; Ord. No. 2018-04]
A. Prior to the granting of a petition on the part of the owner by the
Court pursuant to § 14-11.14, 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 Borough
to make any repair on the property in the event of a code violation
which is not corrected in a timely fashion by the owner.
B. 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 time period, and that the owner
has remedied other violations in a timely and expeditious fashion.
[Ord. No. 2002-23; Ord. No. 2003-05; Ord.
No. 2005-11; Ord. No. 2012-08; Ord. No. 2014-03; Ord. No. 2015-10; Ord.
No. 2015-16; Ord. No. 2017-02; Ord. No. 2018-04]
A. If the owner fails to petition for the reinstatement of control and
possession of the property within 30 days after the Borough 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,
upon petition form the Borough, the Court may grant the Borough title
or authorize the Borough to sell the property, subject to the provisions
of N.J.S.A. 55:19-96.
B. Where the Borough 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 the sale in escrow with the
Court.
C. The Court may authorize the Borough 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 article, except that municipal liens shall
be paid at settlement. The proceeds of the purchase of the property
shall be distributed as set forth in N.J.S.A. 55:19-97.
D. The Borough 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.
E. Upon approval by the Court, the Borough 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 N.J.S.A. 55:19-97. The proceeds
paid pursuant to N.J.S.A. 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 Borough and granted priority lien status pursuant
to Subsection a of N.J.S.A. 55:19-98;
(4)
A reasonable development fee to the Borough 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; a and
[Ord. No. 2002-23; Ord. No. 2003-05; Ord.
No. 2005-11; Ord. No. 2012-08; Ord. No. 2014-03; Ord. No. 2015-10; Ord.
No. 2015-16; Ord. No. 2017-02; Ord. No. 2018-04]
The public officer, with the approval of the Court, may place
a lien on the property to cover any costs of the Borough in connection
with a proceeding under this chapter, incurred prior to the grant
by the Court of an order of possession, which may include costs incurred
to stabilize or secure the property to ensure that it can be rehabilitated
in a cost-effective manner.
[Ord. No. 2002-23; Ord. No. 2003-05; Ord.
No. 2005-11; Ord. No. 2012-08; Ord. No. 2014-03; Ord. No. 2015-10; Ord.
No. 2015-16; Ord. No. 2017-02; Ord. No. 2018-04]
A. With respect to any eminent domain proceeding carried out under N.J.S.A.
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 Borough 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.
B. If the appraisal finds that the cost of rehabilitation or demolition
and new construction, as appropriate, exceeds the realistic market
value after rehabilitation or demotion and new construction there
shall be a rebuttable presumption in all proceedings under this section
that the fair market value of the abandoned property is zero, and
that no compensation is due the owner.