[HISTORY: Adopted by the Borough Council of the Borough of
Paramus 12-17-2019 by Ord. No. 19-32; amended in its entirety 9-6-2022 by Ord. No. 2022-19. Subsequent amendments noted where applicable.]
It is the purpose and intent of the Council to amend, in light
of recent state legislation P.L. 2021, c. 444, the process to address
the deterioration, crime, and decline in value of Borough neighborhoods
caused by property with foreclosing or foreclosed mortgages located
within the Borough, and to identify, regulate, limit and reduce the
number of these properties located within the Borough. It has been
determined that owner-occupied structures are generally better maintained
when compared to vacant structures, even with a diligent off-site
property owner. Vacant structures or structures owned by individuals
who are economically strained and unable to meet their mortgage obligations
are often not properly or diligently maintained, which contributes
to blight, declined property values, and has a negative impact on
social perception of the residential areas where they are located.
It is the Council's further intent to establish a registration
program as a mechanism to help protect neighborhoods from becoming
blighted through the lack of adequate maintenance of properties that
are in foreclosure or foreclosed, and to provide a mechanism to avert
foreclosure actions through timely intervention, education, or counseling
of property owners.
The following words, terms, and phrases, when used in this chapter,
shall have the meanings ascribed to them in this section, unless a
different meaning clearly appears from the context:
The mortgagor has not complied with the terms of the mortgage
on the property, or the promissory note, or other evidence of the
debt, referred to in the mortgage.
Any construction code official, zoning officer, law enforcement
officer, code enforcement officer, fire inspector, building inspector,
Board of Health inspector, or other person authorized by the Borough
to enforce the applicable code(s).
Any condition that on its own, or combined with other conditions
present, would lead a reasonable person to believe that the property
is vacant. Such conditions may include, but are not limited to: overgrown
and/or dead vegetation; past due utility notices and/or disconnected
utilities; accumulation of trash, junk or debris; abandoned vehicles,
auto parts and/or materials; the absence of furnishings and/or personal
items consistent with habitation or occupancy; the presence of an
unsanitary, stagnant swimming pool; the accumulation of newspapers,
circulars, flyers and/or mail; statements by neighbors, passersby,
delivery agents or government agents; and/or the presence of boards
over doors, windows or other openings in violation of applicable code.
The legal process by which a mortgagee, or other lien holder,
terminates or attempts to terminate a property owner's equitable
right of redemption to obtain legal and equitable title to the real
property pledged as security for a debt or the real property subject
to the lien. This definition shall include, but is not limited to,
a complaint and summons filed with respect to foreclosure on a mortgage,
a lis pendens filed against it by the lender holding a mortgage on
the property, a deed in lieu of foreclosure, sale to the mortgagee
or lien holder, certificate of title and all other processes, activities
and actions, by whatever name, associated with the described process.
The legal process is not concluded until the property obtained by
the mortgagee, lien holder, or their designee, by certificate of title,
or any other means, is sold to a nonrelated bona fide purchaser in
an arm's length transaction to satisfy the debt or lien.
The creditor, including but not limited to, trustees; mortgage
servicing companies; lenders in a mortgage agreement; any agent, servant,
or employee of the creditor; any successor in interest; or any assignee
of the creditor's rights, interests or obligations under the
mortgage agreement; or any other person or entity with the legal right
to foreclose on the real property, excluding governmental entities.
Any person, entity, or mortgagee, who alone, jointly or severally
with others, has legal or equitable title to any real property as
defined by this chapter with or without accompanying actual possession
thereof, has legal care, charge, or control of any such property,
part of such property as owner or agent of the owner or as fiduciary,
including but not limited to executor, executrix, administrator, administratrix,
trustee, receiver or guardian of an estate, or as a mortgagee in possession,
regardless of how such possession was obtained; is in possession or
control of any such property; and/or is vested with possession or
control of any such property. Any person who is a lessee subletting
or reassigning any part or all of any dwelling or dwelling unit shall
be deemed to be a co-owner with the lessor and shall have joint responsibility
over the portion of the premises sublet or assigned by said lease.
The property manager shall not be considered the owner.
Any party designated by the owner or mortgagee as responsible
for inspecting, maintaining and securing the property as required
in this chapter.
Any residential or commercial land and/or buildings, leasehold
improvements and anything affixed to the land, or portion thereof
identified by a property parcel identification number, as well as
the lot, plot or parcel of land, including the buildings or structures
thereon, located in the Borough limits.
Any real property located in the Borough, whether vacant or
occupied, that is encumbered by a mortgage subject to an ongoing foreclosure
action by the mortgagee or trustee, has been the subject of a foreclosure
action by a mortgagee or trustee and a judgment has been entered,
or has been the subject of a foreclosure sale where the title was
transferred to the beneficiary of a mortgage involved in the foreclosure
and any properties transferred under a deed in lieu of foreclosure/sale.
The designation of a foreclosure property as "registrable" shall remain
in place until such time as the property is sold to a nonrelated bona
fide purchaser in an arm's length transaction or the foreclosure
action has been dismissed; or
Any property that is vacant for more than 30 days or any cancellation
of utility or service, whichever occurs first.
A web-based electronic database of searchable real property
records, used by the Borough to allow mortgagees and owners the opportunity
to register properties and pay applicable fees as required in this
chapter.
Six months from the date of the first action that requires
registration, as determined by the Borough, or its designee, and every
subsequent six months. The date of the initial registration may be
different than the date of the first action that required registration.
Any utility and/or service that is essential for a building
to be habitable and/or perform a service necessary to comply with
all Borough codes. This includes, but is not limited to, electrical,
gas, water, sewer, lawn maintenance, pool maintenance, and snow removal.
Any parcel of land in the Borough that contains any building
or structure that is not lawfully occupied.
The Borough, or its designee, shall establish a registry cataloging
each registrable property within the Borough, containing the information
required by this chapter.
A.
Any mortgagee who holds a mortgage on real property located within
the Borough shall perform an inspection of the property upon default
by the mortgagor as evidenced by the filing of a foreclosure action.
B.
Property inspected pursuant to Subsection A above that remains in foreclosure shall be inspected every 30 days by the mortgagee or mortgagee's designee. If an inspection shows a change in the property's occupancy status, the mortgagee shall, within 10 days of that inspection, update the occupancy status of the property registration.
C.
Within 10 days of the date any mortgagee files a foreclosure action,
the mortgagee shall register the real property with the Borough registry,
and, at the time of registration, indicate whether the property is
vacant, and so shall designate in writing a property manager to inspect,
maintain, and secure the real property subject to the mortgage under
a foreclosure action. A separate registration is required for each
property under a foreclosure action, regardless of whether it is occupied
or vacant.
D.
Initial registration pursuant to this section shall contain at a
minimum the name of the mortgagee, the mailing address of the mortgagee,
email address, telephone number and name of the property manager and
said person's address, email address, and telephone number.
E.
If the mortgagee is located outside of New Jersey, it must provide
the full name, mailing address, and direct-dial telephone number of
an in-state representative or agent for the mortgagee.
F.
At the time of initial registration each registrant shall pay a nonrefundable
annual registration fee of $500 for each property. Subsequent nonrefundable
annual renewal registrations of properties and fees in the amount
of $500 are due within 10 days of the expiration of the previous registration.
Said fees shall be used to offset the costs of: 1) registration and
registration enforcement, 2) code enforcement and mitigation related
to defaulted properties, 3) post-closing counseling and foreclosure
intervention limited to owner-occupied persons in default, which may
not include cash and mortgage modification assistance, and 4) for
any related purposes as may be adopted in the policy set forth in
this chapter. Said fees shall be deposited to a special account in
the Borough's department dedicated to the cost of implementation
and enforcement of this chapter, and fulfilling the purpose and intent
of this chapter. None of the funds provided for in this section shall
be utilized for the legal defense of foreclosure actions.
G.
Each individual property on the registry that has been registered
for six months or more prior to the effective date shall have 30 days
to renew the registration and pay the nonrefundable annual registration
fee. Properties registered less than six months prior to the effective
date shall renew the registration every 12 months from the expiration
of the original registration renewal date and shall pay the nonrefundable
annual registration fee.
H.
If the mortgage and/or servicing on a registrable property is sold
or transferred, the new mortgagee is subject to all the terms of this
chapter. Within 10 days of the transfer, the new mortgagee shall register
the property or update the existing registration. The previous mortgagee(s)
will not be released from the responsibility of paying all previous
unpaid fees, fines, and penalties accrued during that mortgagee's
involvement with the registrable property.
I.
If the mortgagee sells or transfers the registrable property in a
non-arm's length transaction to a related entity or person, the
transferee is subject to all the terms of this chapter. Within 10
days of the transfer, the transferee shall register the property or
update the existing registration. Any and all previous unpaid fees,
fines, and penalties, regardless of who the mortgagee was at the time
registration was required, including, but not limited to, unregistered
periods during the foreclosure process, are the responsibility of
the transferee and are due and payable with the updated registration.
The previous mortgagee will not be released from the responsibility
of paying all previous unpaid fees, fines, and penalties accrued during
that mortgagee's involvement with the foreclosed property.
J.
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.
K.
This section shall also apply to properties that have been the subject
of a foreclosure sale where title is transferred to the mortgagee
as well as any properties transferred to the mortgagee under a deed
in lieu of foreclosure or by any other legal means.
L.
Properties subject to this section shall remain subject to the annual
registration requirement, and the inspection, security, and maintenance
standards of this section and the Borough Code as long as the property
remains registrable property.
M.
Failure of the mortgagee and/or property owner of record to properly
register or to modify the registration to reflect a change of circumstances
as required by this chapter is a violation of this chapter and shall
be subject to enforcement by any of the enforcement means available
to the Borough.
N.
If any property is in violation of this chapter the Borough may take
the necessary action to ensure compliance with and/or place a lien
on the property for the cost of the outstanding obligation and any
additional cost incurred to bring the property into compliance.
O.
Registration of foreclosure property does not alleviate the mortgagee
and/or property owner from obtaining all required licenses, permits
and inspections required by applicable code or state statutes. Acquisition
of required licenses, permits and inspections or registration of rental
property does not alleviate the requirement for the property to be
registered under this section. The mortgagee and/or property owner
is expected to update the status of the property in the event of a
mortgagee-managed rental.
A.
As authorized under P.L. 2021, Chapter 444, N.J.S.A. 40:48-2.12s3, Subdivision g.(1), if an out-of-state mortgagee that is subject to § 340-4 of this chapter is found by the municipal court of the municipality in which the property subject to this chapter is located, 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 chapter shall be subject to a fine of $2,500 for each day of the violation. Any fines imposed on a mortgagee 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.
B.
As authorized in P.L. 2021, Chapter 444, N.J.S.A. 40:48-2.12s3, Subdivision g.(2), if an out-of-state mortgagee that is subject to § 340-4 of this chapter is found by the municipal court of the municipality in which the property subject to the chapter is located, or by any other court of competent jurisdiction, to be in violation, excluding only a violation addressed by Subsection A 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.
A.
Any owner of vacant property located within the Borough shall within
10 days after the property becomes vacant register the real property
with the Borough registry.
B.
Initial registration pursuant to this section shall contain at a
minimum the name of the owner, the mailing address of the owner, email
address, and telephone number of the owner, and if applicable, the
name and telephone number of the property manager and said person's
address, email address, and telephone number.
C.
At the time of initial registration each registrant shall pay a nonrefundable
semiannual registration fee of $500 for each vacant property. Subsequent
nonrefundable semiannual renewal registrations of vacant properties
and fees in the amount of $500 are due within 10 days of the expiration
of the previous registration. Said fees shall be used to offset the
costs of 1) registration and registration enforcement, 2) code enforcement
and mitigation related to vacant properties, and 3) for any related
purposes as may be adopted in the policy set forth in this chapter.
Said fees shall be deposited to a special account in the Borough's
department dedicated to the cost of implementation and enforcement
of this chapter, and fulfilling the purpose and intent of this chapter.
D.
If the property is sold or transferred, the new owner is subject
to all the terms of this chapter. Within 10 days of the transfer,
the new owner shall register the vacant property or update the existing
registration. The previous owner(s) will not be released from the
responsibility of paying all previous unpaid fees, fines, and penalties
accrued during that owner's involvement with the vacant property.
E.
If the vacant property is not registered, or either the registration
fee or the semiannual registration fee is not paid within 30 days
of when the registration or semiannual registration is required pursuant
to this section, a late fee equivalent to 10% of the semiannual 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. This section shall apply to the initial registration
and registrations required by subsequent owners of the vacant property.
F.
Properties subject to this section shall remain subject to the semiannual
registration requirement, and the inspection, security, and maintenance
standards of this section as long as the property is vacant.
G.
Failure of the owner to properly register or to modify the registration
to reflect a change of circumstances as required by this chapter is
a violation of this chapter and shall be subject to enforcement by
any of the enforcement means available to the Borough.
H.
If any property is in violation of this chapter, the Borough may
take the necessary action to ensure compliance with and place a lien
on the property for the cost of the outstanding obligation and any
additional cost incurred to bring the property into compliance.
I.
Properties registered as a result of this section are not required
to be registered again pursuant to the foreclosure mortgage property
section.
A.
Properties subject to this chapter shall be kept free of weeds, overgrown
brush, dead vegetation, trash, junk, debris, building materials, any
accumulation of newspaper circulars, flyers, notices, except those
required by federal, state or local law, discarded small appliances,
printed material, or any other items or conditions which constitute
evidence of vacancy.
B.
Registrable 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, of registrable
property shall be maintained in accordance with the applicable code(s)
at the time registration is required.
D.
Registrable 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. Acceptable maintenance
of yards and/or landscape shall not include weeds, gravel, broken
concrete, asphalt or similar material.
E.
Maintenance shall include, but not be limited to, watering, irrigation,
cutting and mowing of required ground cover or landscape and removal
of all trimmings.
F.
Pools and spas of shall be maintained so the water remains free and
clear of pollutants and debris and shall comply with the regulations
set forth in the applicable code(s).
G.
Failure of the mortgagee, owner, and transferees to properly maintain
the property as required by this chapter may result in a violation
of the applicable code(s) and issuance of a citation or notice of
violation in accordance with the applicable code of the Borough. Pursuant
to a finding and determination by the Borough Sheriff, Magistrate
or a court of competent jurisdiction, the Borough may take the necessary
action to ensure compliance with this section.
A.
Properties subject to this chapter shall be maintained in a secure
manner so as not to be accessible to unauthorized persons.
B.
A "secure manner" shall include, but not be limited to, the closure
and locking of windows, doors, gates and other openings of such size
that will preclude a child from accessing 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 property is registrable, and the property has become vacant
or blighted, a property manager shall be designated by the mortgagee
and/or owner to perform the work necessary to bring the property into
compliance with the applicable code(s), and the property manager must
perform regular inspections to verify compliance with the requirements
of this chapter, and any other applicable laws.
D.
In addition to the above, the property is required to be secured
in accordance with applicable code(s) of the Borough.
E.
When a property subject to this chapter becomes vacant, it shall
be posted with the name and twenty-four-hour contact telephone number
of the property manager. The property manager shall be available to
be contacted by the Borough Monday through Friday between 9:00 a.m.
and 5:00 p.m., legal holidays excepted. The sign shall be placed in
a window facing the street and shall be visible from the street. Unless
otherwise limited by a Borough ordinance, the posting shall be no
less than 18 inches by 24 inches and shall be of a font that is legible
from a distance of 45 feet. The posting shall contain the following
language with supporting information:
THIS PROPERTY IS MANAGED BY
AND IS INSPECTED ON A REGULAR BASIS.
THE PROPERTY MANAGER CAN BE CONTACTED
BY TELEPHONE AT
OR BY EMAIL AT
F.
The posting required in Subsection E above shall be placed on the interior of a window facing the street to the front of the property so that it is visible from the street, or secured to the exterior of the building/structure facing the street to the front of the property so that it is visible from the street or, if no such area exists, on a stake of sufficient size to support the posting in a location that is at all times visible from the street to the front of the property but not readily accessible to vandals. Exterior posting shall be constructed of and printed with weather-resistant materials.
G.
Failure of the mortgagee and/or property owner of record to properly
inspect and secure a property subject to this chapter, and post and
maintain the signage noted in this section, is a violation and shall
be subject to enforcement by any of the enforcement means available
to the Borough. The Borough may take the necessary action to ensure
compliance with this section, and recover costs and expenses in support
thereof.
The provisions of this chapter are cumulative with and in addition
to other available remedies. Nothing contained in this chapter shall
prohibit the Borough from collecting on fees, fines, and penalties
in any lawful manner; or enforcing its codes by any other means, including,
but not limited to, injunction, abatement, or as otherwise provided
by law or ordinance.
A.
If the enforcement officer has reason to believe that a property
subject to the provisions of this chapter 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
or owner, and may bring the violations before the code enforcement,
Council or special magistrate as soon as possible to address the conditions
of the property. Nothing herein shall limit the Borough from abating
any nuisance or unsafe condition by any other legal means available
to it.
B.
The Sheriff, code enforcement, Council or special magistrate shall
have the authority to require the mortgagee or owner 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
Sheriff, code enforcement, Council or special magistrate may direct
the Borough to abate the violations and charge the mortgagee or owner
with the cost of the abatement.
D.
If the mortgagee or owner does not reimburse the Borough for the
cost of temporarily securing the property, or of any abatement directed
by the Sheriff, code enforcement officer, code enforcement, Council
or special magistrate, within 30 days of the Borough sending the mortgagee
or owner the invoice, then the Borough may lien the property with
such cost, along with an administrative fee as determined in the Borough's
Fee Ordinance to recover the administrative personnel services. In
addition to filing a lien, the Borough may pursue financial penalties
against the mortgagee or owner.
E.
The Borough may contract with an entity to implement this chapter,
and, if so, any reference to the "enforcement officer" herein shall
include the entity the Borough contracts with for that purpose.
Whoever opposes, obstructs or resists any enforcement officer
or any person authorized by the enforcement office in the discharge
of duties as provided in this chapter 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 chapter.
It is hereby declared to be the intention of the Borough that
the sections, paragraphs, sentences, clauses, and phrases of this
chapter are severable, and if any phrase, clause, sentence, paragraph,
or section of this chapter shall be declared unconstitutional by the
valid judgment or decree of a court of competent jurisdiction, such
unconstitutionality shall not affect any of the remaining phrases,
clauses, sentences, paragraphs, and sections of this chapter.
All ordinances or parts of ordinances in conflict herewith are
hereby repealed and replaced to the extent of the inconsistency.
This chapter shall become effective immediately upon adoption
and publication as required by law.
