[Adopted 8-13-2015 by Ord. No. 10-2015]
[Amended 4-25-2024 by Ord. No. 11-2024]
A. 
Whereas, the present mortgage foreclosure crisis has serious negative implications for all communities trying to manage the consequences of property vacancies and abandoned real properties; and whereas, the Borough of Clayton ("Borough") recognizes an increase in the number of vacancies and abandoned properties located throughout the Borough; and whereas, the Borough is challenged to identify and locate owners or foreclosing parties who can maintain the properties that are in the foreclosure process or that have been foreclosed; and whereas, the Borough finds that the presence of vacant and abandoned properties can lead to a decline of property value, create attractive nuisances and lead to a general decrease in neighborhood and community aesthetic; and whereas, the Borough has already adopted property maintenance codes to regulate building standards for the exterior of structures and the condition of the property as a whole; and whereas, the Borough has a vested interest in protecting neighborhoods against decay caused by vacant and abandoned properties and concludes that it is in the best interest of the health, safety, and welfare of the citizens and residents to impose registration and certification requirements on abandoned and vacant properties located within the Borough; and whereas, the Borough of Clayton had adopted Ordinance No. 12-2013 for the creation of a new section titled "Abandoned Property—Registration Requirements" within Chapter 74 of the Code of the Borough of Clayton; now, therefore, be it ordained by the Mayor and Council of the Borough of Clayton that Ordinance No. 12-2013 is hereby repealed in its entirety and a new article is hereby created within Chapter 74 to be titled "Abandoned/Vacant Property—Registration Requirements" to read as follows:
B. 
The foregoing "whereas" clauses are hereby ratified and confirmed as being true and correct and are hereby made a specific part of this article upon the adoption hereof.
[Amended 4-25-2024 by Ord. No. 11-2024]
It is the purpose and intent of the Borough to establish a process to address the deterioration and blight of Borough neighborhoods caused by an increasing amount of abandoned, foreclosed or distressed real property located within the Borough, and to identify, regulate, limit and reduce the number of abandoned properties located within the Borough.
[Amended 4-25-2024 by Ord. No. 11-2024]
The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
ABANDONED REAL PROPERTY
Any real property located in the Borough, whether vacant or occupied, that is in default as evidenced by the filing of a foreclosure complaint on a mortgage, has had a lis pendens filed against it by the lender holding a mortgage on the property, is subject to an ongoing foreclosure action by the lender, is subject to an application for a tax deed or pending Tax Assessor's lien sale, or has been transferred to the lender under a deed in lieu of foreclosure. The designation of a property as "abandoned" shall remain in place until such time as the property is sold or transferred to a new owner, the foreclosure action has been dismissed, and any default on the mortgage has been cured.
ACCESSIBLE PROPERTY/STRUCTURE
A property that is accessible through a comprised/breached gate, fence, wall, etc., or a structure that is unsecured and/or breached in such a way as to allow access to the interior space by unauthorized persons.
APPLICABLE CODES
To include, but not be limited to, the Borough's Unified Development Ordinance,[1] the Borough's Code Book of Ordinances ("Borough Code Book"), and the New Jersey Building Code.
BLIGHTED PROPERTY
A. 
Properties that have broken or severely damaged windows, doors, walls, or roofs which create hazardous conditions and encourage trespassing;
B. 
Properties whose maintenance is not in conformance with the maintenance of other neighboring properties causing a decrease in value of the neighboring properties;
C. 
Properties cited for a public nuisance pursuant to the Borough Code; or
D. 
Properties that endanger the public's health, safety, or welfare because the properties or improvements thereon are dilapidated, deteriorated, or violate minimum health and safety standards or lack maintenance as required by the Borough Code and the Unified Development Ordinance.[2]
ENFORCEMENT OFFICER
Any law enforcement officer, housing official, building official, zoning official, code enforcement official, fire inspector or building inspector, or other person authorized by the Borough to enforce the applicable code(s).
OWNER
Any person, legal entity or other party having any ownership interest, whether legal or equitable, in real property. This term shall also apply to any person, legal entity or agent responsible for the construction, maintenance or operation of the property involved.
PROPERTY MANAGEMENT COMPANY
A local property manager, property maintenance company or similar entity responsible for the maintenance of abandoned real property.
VACANT
Any building or structure that is not legally occupied.
[1]
Editor's Note: See Ch. 88, Unified Development.
[2]
Editor's Note: See Ch. 88, Unified Development.
These sections shall be considered cumulative and not superseding or subject to any other law or provision for the same, but rather to be an additional remedy available to the Borough above and beyond any other state, county or local provisions for the same.
[Amended 4-25-2024 by Ord. No. 11-2024]
Pursuant to the provisions of this article, the Borough and/or its designee shall catalog each abandoned property within the Borough, containing the information required by this article.
[Amended 9-22-2022 by Ord. No. 16-2022; 2-22-2024 by Ord. No. 6-2024; 4-25-2024 by Ord. No. 11-2024]
A. 
Registration of abandoned property for which a summons and complaint in an action to foreclosure on a mortgage has been filed. This article is adopted pursuant to Subsection a of N.J.S.A. 40:48-2.12s3 and requires that:
(1) 
A creditor filing a summons and complaint in an action to foreclosure shall, in addition to the notice provided to the Borough of Clayton pursuant to Section 17 of N.J.S.A. 46:10B-51 or Section 2 of N.J.S.A. 40:48-2.12s2, register the residential or commercial property with the municipality's property registration program as a property in foreclosure and, as part of the registration:
(a) 
Provide the municipality with the information regarding the creditor required by paragraph (1) of Subsection a of Section 17 or paragraph (1) of Subsection a of Section 2 of N.J.S.A. 40:48-2.12S2;
(b) 
Identify the date the summons and complaint in an action to foreclosure on a mortgage was filed against the subject property, the court in which it was filed, and the docket number of the filing; and
(c) 
Identify whether the property is vacant and abandoned in accordance with the definition in § 74-20.
(2) 
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;
(3) 
The creditor filing a summons and complaint in an action to foreclosure shall, if the registered property becomes vacant and abandoned in accordance with the definition in § 74-20 after the property is initially registered with the municipality, update the property registration with the municipality to reflect the change in the property's status.
(4) 
The creditor filing a summons and complaint in an action to foreclosure 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;
(5) 
A creditor located out of state shall be responsible for appointing an in-state representative or agent to act for the foreclosing creditor;
(6) 
A credit comply with the requirements of § 74-24 relating to the care, maintenance, security, and upkeep of the exterior of the property, and post 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 purchase of receiving service of process, or 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 while registered with the property registration program;
(7) 
Fees may be imposed on the creditor in connection with the property registration program as authorized pursuant to Subsection D of this section; and
(8) 
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 windowpanes 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.
B. 
This section authorizes a public officer, designated or appointed pursuant to N.J.S.A. 40:48-2.3 et seq., or any other local official responsible for administration of any property maintenance or public nuisance code to issue a notice to the creditor filing the summons and complaint in an action to foreclosure, if the public officer or other authorized municipal official determines that the creditor has violated the ordinance. In the case 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 the public health and safety. The notice issued shall include a description of the conditions which give rise to the violation. If the creditor fails to remedy the violation within that time period, the Borough may impose penalties allowed for the violation of municipal ordinances. If the Borough expends public funds in order to abate a nuisance or correct a violation on a commercial property in a situation in which the creditor was given notice pursuant to the provisions of Subsection B of this section but failed to abate the nuisance or correct the violation as directed, the municipality 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 Section 23 of P.L. 2003, c. 210 (N.J.S.A. 55:19-100).
C. 
This section authorizes the Borough of Clayton to contract with and set the compensation of a private entity, pursuant to the Local Public Contracts Law, N.J.S.A. 40A:11-1 et seq., to assist the municipality in the implementation and administration of the property registration program established pursuant to an ordinance adopted pursuant to this section.
D. 
This section authorizes the Borough of Clayton to impose an annual fee on a creditor required to register a property pursuant to this section. The fee shall not exceed: 1) $500 per property annually for any property that is required to be registered because a summons and complaint in an action to foreclosure 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 in § 74-20 when the summons and complaint in an action to foreclosure is filed, or becomes vacant and abandoned pursuant to the definition in § 74-20 at any time thereafter while the property is in foreclosure. 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.
E. 
As used in this section:
CREDITOR
Mortgagees 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 foreclosure 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 section. For purposes of this section, 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.
(1) 
An out-of-state creditor subject to this section found by the municipal court, 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 the ordinance 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 N.J.S.A. 46:10B-51 or Paragraph (1) of Subsection a of Section 2 of N.J.S.A. 40:48-2.12s2 for providing notice to the Municipal Clerk that a summons and complaint in an action to foreclosure on a mortgage has been served.
(2) 
A creditor subject to this section found by the municipal court, or by any other court of competent jurisdiction, to be in violation, excluding only a violation addressed by Subsection E(1), of this section 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.
F. 
No less than 20% of any money collected pursuant to this section or an ordinance adopted pursuant to this section shall be utilized for municipal code enforcement purposes.
A. 
Properties subject to this article shall be kept free of weeds, overgrown brush, dead vegetation, trash, junk, debris, building materials, any accumulation of newspapers, circulars, flyers, or notices, except those required by federal, state or local law, discarded personal items, including but not limited to furniture, clothing, and large and small appliances, printed material or any other items that give the appearance that the property is abandoned.
B. 
The property shall be maintained free of graffiti or similar markings by removal or painting over with an exterior grade paint that matches the color of the exterior structure.
C. 
Front, side, and rear yards, including landscaping, shall be maintained in accordance with the applicable code(s) at the time registration was required.
D. 
Yard maintenance shall include, but not be limited to, grass, ground covers, bushes, shrubs, hedges or similar plantings, decorative rock or bark or artificial turf/sod designed specifically for residential installation. 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 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 and/or owner to properly maintain the property may result in a violation of the applicable code(s) and issuance of a summons or notice of violation.
H. 
In addition to the above, the property is required to be maintained in accordance with the applicable code(s).
A. 
Properties subject to these sections 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 reglazing of the window.
C. 
If a mortgage on a property is in default and the property has become vacant or abandoned, a property manager shall be designated by the mortgagee 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 article and any other applicable laws.
All abandoned real property is hereby declared to be a public nuisance, the abatement of which pursuant to the police power is hereby declared to be necessary for the health, welfare and safety of the residents of the Borough.
Any person who shall violate the provisions of this article may be cited and fined as provided in this article.
A. 
Any person who shall violate the provisions of this article shall be cited and punishable by one or more of the following: imprisonment in the county jail or in any place provided by the Borough for the detention of prisoners for any term not exceeding 90 days, or by a fine not less than $100 nor exceeding $1,250, or by a period of community service not exceeding 90 days.[1]
[1]
Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. II).
B. 
Any person who is convicted of violating this article within one year of the date of a previous violation of the same section and who was fined for the previous violation shall be sentenced by a court to an additional fine as a repeat offender. The additional fine imposed by the court upon a person for a repeated offense shall not be less than the minimum or exceed the maximum fine fixed for a violation of this article but shall be calculated separately from the fine imposed for the violation of this article.
A. 
If the Code Enforcement Officer has reason to believe that a property subject to the provisions of this article is posing a serious threat to the public health, safety and welfare, the Code Enforcement Officer may temporarily secure the property at the expense of the mortgagee and/or owner and may bring the violations before a court of competent jurisdiction as soon as possible to address the conditions of the property.
B. 
The Code Enforcement Officer shall have the authority to require the mortgagee and/or owner of record of any property affected by this section to implement additional maintenance and/or security measures, including but not limited to securing any and all doors, windows or other openings, employment of an on-site security guard or other measures as may be reasonably required to help prevent further decline of the property.
C. 
If there is a finding that the condition of the property is posing a serious threat to the public health, safety and welfare, then the Code Enforcement Officer may direct the Borough to abate the violations and charge the mortgagee with the cost of the abatement.
D. 
If the mortgagee does not reimburse the Borough for the cost of temporarily securing the property, or of any abatement directed by the Code Enforcement Officer or Municipal Court Judge, within 30 days of the Borough sending the mortgagee the invoice, then the Borough may lien the property with such cost, along with an administrative fee of $500 to recover the administrative personnel services.
Whoever opposes, obstructs or resists any enforcement officer or any person authorized by the enforcement officer in the discharge of duties as provided in this article shall be punishable as provided in the applicable code(s) or a court of competent jurisdiction.
Any enforcement officer or any person authorized by the Borough to enforce the sections here within shall be immune from prosecution, civil or criminal, for reasonable, good faith entry upon real property while in the discharge of duties imposed by this article.