[Adopted 6-21-2022 by Ord. No. 1519[1]]
[1]
Editor’s Note: This ordinance also repealed former Art.
IV, Registration of Defaulted Mortgage Property and Vacant Property,
adopted 8-1-2017 by Ord. No. 1444.
It is the intent of this article, as further detailed within
its enabling ordinance, to enable the Borough Haddon Heights to engage
in the identification, registration, monitoring, and migration of
properties that are or may become vacant and abandoned to the fullest
extent permitted by P.L. 2021, c. 444, in order to combat the immeasurable
and deleterious effects of blight arising from residential and commercial
properties that become vacant or abandoned during the foreclosure
process.
All words, terms, and phrases used within this article shall
be defined and interpreted consistent with their meanings as outlined
within P.L. 2021, c. 444, as may be amended from time to time.
A state-chartered bank, savings bank, savings-and-loan association
or credit union, any person required to be licensed under the provisions
of the New Jersey Residential Mortgage Lending Act, Sections 1 through
39 of P.L. 2009, c. 53 (N.J.S.A. 17:11C-51 through N.J.S.A. 17:11C-89),
and any entity, agent, or assignee acting on behalf of the creditor
named in the debt obligation, including, but not limited to, servicers,
who has filed a complaint in the Superior Court seeking to foreclose
upon a residential or commercial mortgage. A creditor shall not include
the state, a political subdivision of the state, or a state, county,
or local government entity, or their agent or assignee, such as the
servicer.
A property shall be deemed "vacant and abandoned" for purpose
of this article if:
The property is not legally occupied by a mortgagor or tenant;
and
The property is not legally reoccupied, because of at least
two of the following conditions:
Overgrown or neglected vegetation;
The accumulation of newspapers, circulars, flyers, or mail on
the property;
Disconnected gas, electric, or water utility services to the
property;
The accumulation of hazardous, noxious, or unhealthy substances
or materials on the property;
The accumulation of junk, litter, trash or debris on the property;
The absence of window treatments such as blinds, curtains or
shutters;
The absence of furnishings and personal items;
Statements of neighbors, delivery persons, or government employees
indicating that the property is vacant and abandoned;
Windows or entrances to the property that are boarded up or
closed off, or multiple window panes that are damaged, broken and
unrepaired;
Doors to the property that are smashed through, broken off,
unhinged, or continuously unlocked;
A risk to the health, safety or welfare of the public or any
adjoining or adjacent property owners due to acts of vandalism, loitering,
criminal conduct, or the physical destruction or deterioration of
the property;
An uncorrected violation of a municipal building, housing or
similar code during the preceding year, or an order by municipal authorities
declaring the property to be unfit for occupancy and to remain vacant
and unoccupied;
The mortgagee or other authorized party has secured or winterized
the property due to the property being deemed vacant and unprotected
or in danger of freezing;
A written statement issued by a mortgagor expressing the clear
intent of all mortgagors to abandon the property; or
Any other reasonable indicia of abandonment.
A.
The Borough Haddon Heights shall create and maintain a registry of
all commercial and/or residential properties within its municipal
boundary for which a summons and complaint in an action to foreclose
has been filed with the New Jersey Superior Court, pursuant to its
authority granted by P.L. 2021, c. 444. This registry will be formed
and maintained to assist the Borough with regulating the maintenance,
security, and upkeep of properties which may become vacant and abandoned
during the foreclosure process, in order to prevent the deleterious
effects of blight associated with vacant and abandoned properties
that are not maintained.
B.
The Borough Haddon Heights may, at its discretion, create, maintain
and administer this registry independently, retain the professional
services of a third party pursuant to the Local Public Contracts Law,
N.J.S.A. 40A:11-1 et seq., or participate in a shared services agreement
with other local units, counties, and/or county improvement authorities
for the creation, maintenance and administration of the registry pursuant
to the Uniform Shared Services and Consolidation Act, N.J.S.A. 40A:65-1
et seq.
C.
Any third parties retained to create, maintain, and/or administer
the registry shall have the authority, on behalf of the Borough to:
(1)
Identify properties subject to the registration requirement;
(2)
Maintain and update the registration list;
(3)
Communicate with creditors and/or in-state representatives;
(4)
Invoice and collect payment of fees;
(5)
Monitor compliance; and
(6)
Such other functions, within the scope of P.L. 2021, c. 444, which
may be deemed necessary to carry out its function on behalf of the
Borough.
D.
Any third parties retained to create, maintain, and/or administer
the registry shall be required to comply with the following reporting
and payment requirements:
(1)
Any and all amounts collected by the third party as part of its administration
of the Borough's registry, including registration fees, interest,
and penalties, shall be paid, in full directly to the Borough or Camden
County, and/or Camden County Improvement Authority as applicable,
not less than once per year, or as otherwise directed by the Borough.
No fees, payments, expenses, or other deductions shall be made from
this payment; payment for any third party's services under this
article shall be made by the Borough, or as applicable, the county/county
improvement authority, directly to the third party, under the terms
and conditions outlined within the contract for professional services.
(2)
Not less than once per year on the first business day of each calendar
year, or as otherwise may be requested by the Tax Collector, any third
party administering the Borough's registry shall file with the
Tax Collector a certification identifying:
(a)
The address, block, lot and contact information of any property
for which registration fees under this article are due and owing at
the time of the certification;
(b)
The amount of the registration fees, and separately, any interest,
fines, and other penalties due and owing at the time of the certification;
and,
(c)
The date on which the property became eligibility for inclusion
on the Borough's registry.
E.
The Borough's Clerk or his or her designee shall serve as the
municipal official responsible for notifying creditors, establishing
and maintaining the registry, determining eligibility for designation
as a vacant and abandoned property under this article, and for imposing
fees, penalties, and/or violations. The responsibilities herein may
be designated to a third party, pursuant to the terms and conditions
of a contract for professional services consistent with P.L. 20201,
c. 444.
A.
Within 30 days of the effective date of this article, any creditor who has initiated a summons and complaint with the New Jersey Superior Court in an action to foreclose on a commercial and/or residential mortgage for a property located within the Borough Haddon Heights: i) prior to the effective date of this article, and ii) which is pending as of the effective date of this article, shall provide notice in accordance with Subsection B of this section.
B.
Within 10 days of filing a summons and complaint with the New Jersey
Superior Court in an action to foreclose on a commercial and/or residential
mortgage for a property located with the Borough Haddon Heights, the
creditor shall notify the Borough Clerk, or his or her designee, of
the action. Such notice shall include:
(1)
The address, block, and lot of the subject property.
(2)
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.
(3)
Whether the property is vacant and abandoned in accordance with the
definition in this article.
(4)
The full name, address and telephone number for the representative
of the creditor who is responsible for receiving notice of complaints
of property maintenance and code violations.
(5)
The full name, address, and telephone number of any person or entity
retained by the creditor or a representative of the creditor to be
responsible for any care, maintenance, security, or upkeep of the
property.
(6)
If the creditor is out-of-State, the full name, address, and telephone
number of an in-state representative or agent who shall be responsible
for any care, maintenance, security or upkeep of the property, and
for receiving notice complaints of property maintenance and code violations.
(7)
The notice requirements herein represent a continuing obligation
through the pendency of this foreclosure action. After initial notice
to the Borough, creditors subject to the notice requirement shall
update the Borough's property registration program within 10
days of any change in the information contained in the original or
any subsequent notices.
C.
Creditors of any commercial and/or residential mortgage required
to notify the Borough pursuant to this section shall:
(1)
Register the property with the Borough's property registration
program as a property in foreclosure, within 30 days of notifying
the Borough;
(2)
Be subject to the registration fee, notice requirements and penalties
for noncompliance established within this article;
(3)
Update the property registration within 10 days of any chance in
the information contained in the original notice to the Borough;
(4)
If an out-of-state creditor, appoint an in-state representative or
agent to act for the foreclosing creditor, whose contact information
shall be contained within the initial notice to the Borough;
(5)
Within 10 days of the property becoming vacant and abandoned at any
time during the pendency of the foreclosure action, the creditor shall:
(a)
Assume responsibility for the care, maintenance, upkeep and
security of the exterior of the property;
(b)
Secure the property against unauthorized entry;
(c)
Post a sign on the inside of the property, visible to the public,
containing 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;
(d)
Acquire and maintain a vacancy insurance policy which covers
any damage to any person or any property caused by any physical condition
of the property while registered with the Borough's property
registration program;
(e)
Provide proof, within 10 days of receiving a request by the
Borough or its designee, that the above conditions have been satisfied;
(f)
Cure any violations of the above requirements within 30 days
of receiving a notice of violation, or if deemed to present an imminent
threat to public health and safety, within 10 days of receiving such
notice.
(6)
Update the property registration within 10 days of the creditor becoming
aware that the property is deemed vacant and abandoned as defined
herein.
D.
If at any time the creditor is deemed to be in violation of the above
requirements, and/or if the property is deemed to be in violation
of any other applicable local or state maintenance, health or safety
codes, the Code Official or his or her designee shall notify the creditor
using the contact information provided in the property registry established
by this article.
A.
All fees, penalties, and/or fines established within this article
and assessable pursuant to the Borough's authority outlined within
P.L. 2021, c. 444, shall be deemed a municipal charge in accordance
with N.J.S.A. 54:5-1 et seq.
B.
Creditors required to notify the Borough and register a property
as one in foreclosure shall be required to pay the following annual
registration fee, per property, due at the time of registration of
$500.
C.
If a property registered with the Borough's registration program
as a property in foreclosure is vacant and abandoned at the time of
registration, or becomes vacant and abandoned at any time during the
pendency of the foreclosure proceeding, the creditor shall pay an
additional annual registration fee, per property, due at the time
the determination that the property is vacant and abandoned is made,
of $2,000.
D.
Violations.
(1)
An out-of-state creditor subject to the notice and registration requirements
of this article, found to be in violation of the requirement to appoint
an in-state representative or agent, shall be subject to a fine of
$2,500 for each day of the violation. The violation shall be deemed
to commence on the day after the creditor's initial ten- or thirty-day
requirement to notify the Borough of applicable foreclosure actions.
(2)
A creditor subject to the notice and registration requirements of this article found to be in violation of any part of this article (with the exception of a violation pursuant to Subsection D(1) of this section, shall be subject to a fine of $1,500 for each day of the violation. The violation shall be deemed to commence on the 31st day following the creditor's receipt of a notice of violation, or if deemed to present an imminent threat to public health and safety, on the 11th day following the creditor's receipt of such notice.
E.
If the Borough expends public funds in order to abate a nuisance
or correct a violation on a commercial property in situations in which
the creditor was given notice pursuant to this article, but failed
to abate the nuisance or correct the violation as directed, the Borough
shall have the same resource 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 et seq.
