[Adopted 8-10-2022 by Ord. No. 2022-12]
This article governs the maintenance of vacant residential and
commercial properties in the Borough of Lindenwold, subject to pending
foreclosure actions in the Superior Court of New Jersey, amending
registration requirements and amending registration fees for creditors
of vacant and abandoned properties pending foreclosure.
Any creditor filing a summons and complaint in an action to
foreclose shall, in addition to the notice provided to the municipality
pursuant to Section 17 of P.L. 2008, c. 127 (N.J.S.A. 46:10B-51) or
Section 2 of P.L. 2021, c. 444 (N.J.S.A. 40:48-2.12s2), register the
residential or commercial property with the Borough of Lindenwold's
property registration program as a property in foreclosure and, as
part of that registration:
A.
Provide the municipality with the information regarding the creditor
required by Paragraph (1) of Subsection a. of Section 17 of P.L. 2008,
c. 127 (N.J.S.A. 46:10B-51) or Paragraph (1) of Subsection a. of Section
2 of P.L. 2021, c. 444 (N.J.S.A. 40:48-2.12s2);
B.
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
If there is any change in the name, address, or telephone number
for a representative, agent, or individual authorized to accept service
on behalf of a creditor required to register pursuant to the property
registration program following the filing of the summons and complaint,
the creditor shall update the property registration program within
10 days of the change in that information.
[Amended 6-14-2023 by Ord. No. 2023-13]
The creditor filing a summons and complaint in an action to foreclose shall, if the registered property becomes vacant and abandoned in accordance with the definition as set forth in § 238-32, after the property is initially registered with the Borough of Lindenwold, update the property registration with the municipality within 10 days of the property becoming vacant and abandoned, to reflect the change in the property's status.
The creditor filing a summons and complaint in an action to
foreclose shall be responsible for the care, maintenance, security,
and upkeep of the exterior of the property if the property is vacant
and abandoned at any time while the property is registered with the
property registration program.
A creditor located out-of-state shall be responsible for appointing
an in-state representative or agent to act for the foreclosing creditor.
The creditor filing a summons and complaint in an action to
foreclose on a property, that is or becomes vacant and abandoned,
shall be responsible for the care, maintenance, security, and upkeep
of the exterior of the property, including, but not limited to, securing
the property against unauthorized entry, posting a sign affixed to
the inside of the property and visible to the public indicating the
name, address, and telephone number of the creditor or an out-of-state
creditor's in-state representative or agent for the purpose of receiving
service of process, and ensure compliance with all municipal code
provisions and state regulatory provisions regarding the maintenance
of the property. The creditor shall 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 while registered
with the property registration program.
A property shall be considered vacant and abandoned if it is
not legally occupied by a mortgagor or tenant, which is in such condition
that it cannot be legally reoccupied, because of the presence or finding
of at least two of the following:
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.
The Construction Official shall issue a notice to the creditor
filing the summons and complaint in an action to foreclose, if the
Construction Official determines that the creditor has violated this
article. In the case of a violation for failure to provide care, maintenance,
security, and upkeep of the exterior of vacant and abandoned property,
such notice shall require the person or entity to correct the violation
within 30 days of receipt of the notice, or within 10 days of receipt
of the notice if the violation presents an imminent threat to public
health and safety.
[Amended 6-14-2023 by Ord. No. 2023-13]
An annual fee shall be imposed as listed in Chapter 150, Article I. § 150-49, upon a creditor required to register a property pursuant to this article in the amount of 1) $500 per property annually for any property that is required to be registered because a summons and complaint in an action to foreclose was filed by the creditor; and 2) an additional $2,000 per property annually if the property is vacant or abandoned pursuant to the definition as set forth in § 238-32 of this article when the summons and complaint in an action to foreclose is filed, or becomes vacant and abandoned pursuant to the definition in § 238-32 at any time thereafter while the property is in foreclosure. The annual fee shall be initially due and payable within 30 days of registering the property pursuant to § 238-26 of this article, and shall be due and payable on the anniversary date of the initial registration thereafter, for each succeeding year. In the event a property becomes vacant and abandoned pursuant to the definition as set forth in § 238-32 at any time after the initial registration, and while the property remains in foreclosure, the creditor shall pay the additional $2,000 fee simultaneous with the updated property registration statement, as required in § 238-28, and thereafter, all annual fees pursuant to this section shall become due on the date the Borough of Lindenwold receives the updated registration statement per § 238-28. Property registration fees imposed pursuant to this article shall be considered a municipal charge pursuant to the Tax Sale Law, N.J.S.A. 54:5-1 et seq.
(For Borough penalties see Chapter 1, § 1-1, of the Code unless required by New Jersey state law as below.)
A.
If an out-of-state creditor subject to this article is found by the
municipal court of the Borough of Lindenwold, or by any other court
of competent jurisdiction, to be in violation of the requirement to
appoint an in-state representative or agent pursuant to this article,
the out-of-state creditor shall be subject to a fine of $2,500 for
each day of the violation. Any fines imposed on a creditor for the
failure to appoint an in-state representative or agent shall commence
on the day after the ten-day period set forth in Paragraph (1) of
Subsection a. of Section 17 of P.L. 2008, c. 127 (N.J.S.A. 46:10B-51)
or Paragraph (I) of Subsection a. of Section 2 of P.L. 2021, c. 444
(N.J.S.A. 40:48-2.12s2) for providing notice to the Municipal Clerk
that a summons and complaint in an action to foreclose on a mortgage
has been served.
B.
A creditor subject to this article found by the municipal court of the Borough of Lindenwold, or by any other court of competent jurisdiction, to be in violation, excluding only a violation addressed by Subsection A of this section, of this article, shall be subject to a fine of $1,500 for each day of the violation. Any fines imposed pursuant to this subsection shall commence 31 days following receipt of the notice of violation, except if the violation presents an imminent risk to public health and safety, in which case any fines shall commence 11 days following receipt of the notice.
As used in this article, the following terms shall have the
meanings indicated:
A mortgagee or an agent or assignee of a mortgagee, such
as the servicer, who has filed a complaint in the Superior Court seeking
to foreclose upon a residential or commercial mortgage. If the entity
seeking to foreclose upon the residential or commercial mortgage changes
as a result of an assignment, transfer, or otherwise after the filing
of the foreclosure complaint in the Superior Court, the new entity
shall be deemed the creditor for purposes of this article. For purposes
of this article, a creditor shall not include the state, a political
subdivision of the state, a state, county, or local government entity,
or their agent or assignee, such as the servicer.
Nothing in this article is intended nor shall be read to conflict
or prevent the Borough from taking action against buildings found
to be unfit for human habitation or unsafe structures as provided
in applicable provisions of the Code of the Borough of Lindenwold.
Further, any action taken under any such code provision, other than
the demolition of a structure, shall relieve an owner from its obligations
under this article.
The provisions of this article are severable to the extent any
clause, phrase, sentence, paragraph, or provision of this article
shall continue in full force and effect.
