[Adopted 11-10-2022 by Ord. No. 23-22[1]]
[1]
Editor's Note: This ordinance also repealed former Art. IV, Buildings Pending Foreclosure, adopted 2-12-2015 by Ord. No. 03-15.
A. 
Foreclosure continues to be an issue confronting residents and municipalities.
B. 
Properties in foreclosure proceedings can involve properties that are vacant and abandoned or have an increased risk of becoming vacant and abandoned during the foreclosure proceeding.
C. 
Vacant and abandoned properties in foreclosure create a greater risk of blight and can create a wide range of problems for the communities in which they are located, including criminal activity, public health problems, depressed property values, reduced tax revenues, and diminished quality of life.
D. 
The Legislature has recognized that municipalities must possess tools to identify properties in foreclosure, monitor their status, and mitigate the risk that they become vacant and abandoned, resulting in blight. The Legislature has also recognized the impact on municipal budgets associated with identifying, monitoring, and mitigating these problems.
E. 
Existing antiblight statutes do not provide a uniform and comprehensive mechanism for municipalities to identify, monitor, and mitigate the risks of vacant and abandoned properties in foreclosure.
F. 
To provide such a mechanism, the Legislature enacted P.L. 2021, c. 444, to establish a uniform property registration system to enable municipalities to identify, monitor, and address the risk of blight created by properties on which foreclosure proceedings have been initiated or such properties that have become vacant and abandoned.
A. 
This article is enacted pursuant to P.L. 2021, c. 444, § 3,[1] which permits municipalities to enact ordinances to:
(1) 
Create a property registration program for the purposes of identifying and monitoring residential and commercial properties within the municipality for which a summons and complaint in an action to foreclose on a mortgage has been filed;
(2) 
Regulate the care, maintenance, security, and upkeep of the exterior of vacant and abandoned residential and commercial properties for which a summons and complaint in an action to foreclose has been filed; and
(3) 
Impose property registration fees on the creditor of residential or commercial properties on an annual or semiannual basis.
[1]
Editor's Note: See N.J.S.A. 40:48-2.12s3.
B. 
This article shall be interpreted and enforced in accordance with the fullest extent of the authority granted to municipalities under P.L. 2021, c. 444, and any subsequent amendments or supplements thereto.
C. 
To the extent that any provision of this chapter conflicts with P.L. 2021, c. 444, the latter shall control.
As used in this article, the following words, terms and their derivations shall have the following meanings unless their use in the text of this article clearly demonstrates a different meaning or references another provision of the Borough Code, or a statute or regulation.
CREDITOR
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 the purposes of this article. For the purposes of this article, a creditor shall not include the State of New Jersey; a political subdivision of the state; a state, county, or local government entity, or their agent or assignee, such as a servicer.
VACANT AND ABANDONED PROPERTY
A. 
A property that is not legally occupied by 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 conditions:
(1) 
Overgrown or neglected vegetation;
(2) 
Accumulation of newspapers, circulars, flyers, or mail on the property;
(3) 
Disconnected gas, electric, or water utility services to the property;
(4) 
The accumulation of hazardous, noxious, or unhealthy substances or materials on the property;
(5) 
The accumulation of junk, litter, trash, or debris on the property;
(6) 
The absence of window treatments, such as blinds, curtains, or shutters;
(7) 
The absence of furnishings or personal items;
(8) 
Statements of neighbors, delivery persons, or government employees indicating that the property is vacant and abandoned;
(9) 
Windows or entrances to the property that are boarded up or closed off, or multiple window panes that are damaged, broken, and unrepaired;
(10) 
Doors to the property that are smashed through, broken off, unhinged, or continuously locked;
(11) 
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;
(12) 
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;
(13) 
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;
(14) 
A written statement issued by a mortgagor expressing the clear intent of all mortgagors to abandon the property; or
(15) 
Any other reasonable indicia of abandonment.
B. 
Except that for purposed of this article, a residential property shall not be considered "vacant and abandoned" if, on the property:
(1) 
There is an unoccupied building which is undergoing construction, renovation, or rehabilitation that is proceeding diligently to completion, and the building is in compliance with all applicable ordinances, codes, regulations, and statutes;
(2) 
There is a building occupied on a seasonal basis, but otherwise secure; or
(3) 
There is a building that is secure, but is the subject of a probate action, action to quiet title, or other ownership dispute.
A. 
There is hereby established a property registration program for the purposes of identifying and monitoring residential and commercial properties within the municipality for which a summons and complaint in an action to foreclose on a mortgage has been filed.
B. 
A creditor filing a summons and complaint in an action to foreclose must, in addition to the notices provided to the Borough pursuant to N.J.S.A. 46:10B-51; P.L. 2021, c. 444, § 2[1]; and Article III of this chapter, also register the residential or commercial property with the enforcement official as a property in foreclosure.
[1]
Editor's Note: See N.J.S.A. 40:48-2.12s2.
C. 
The registration must include the following:
(1) 
Information regarding the creditor required pursuant to N.J.S.A. 46:10B-51a(1); P.L. 2021, c. 444, § 2a(1)[2]; and § 197-36B.
[2]
Editor's Note: See N.J.S.A. 40:48-2.12s2a(1).
(2) 
Information regarding the filed summons and complaint in foreclosure, including: a) the filing date; b) the court in which it was filed; and c) the docket number of the filing. Provided that it provides this information, a copy of the summons and complaint will satisfy this provision.
(3) 
A statement that the property qualifies as vacant and abandoned as defined pursuant to P.L. 2021, c. 444, § 3b(8)[3]; and § 197-40.
[3]
Editor's Note: See N.J.S.A. 40:48-2.12s3b(8).
D. 
If, following the filing of the summons and complaint in foreclosure, 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 hereunder, the property registration must be updated within 10 days of such changes.
E. 
If a registered property becomes vacant and abandoned, as defined pursuant to P.L. 2021, c. 444, § 3b(8)[4]; and § 197-40, after the initial registration, the registration must be updated to reflect this change in status.
[4]
Editor's Note: See N.J.S.A. 40:48-2.12s3b(8).
F. 
Out-of-state creditors must appoint an in-state representative or agent to act for the foreclosing creditor and to accept service of summonses and notices of violation.
A. 
Creditors required to register properties pursuant to this chapter are subject to the following fees:
(1) 
A fee of $500 per property annually for any property required to be registered because a summons and complaint have been filed in an action by the creditor to foreclose.
(2) 
An additional fee of $2,000 per property annually if the property is vacant and abandoned, as defined pursuant to § 197-40, when the summons and complaint in an action to foreclose is filed, or becomes vacant and abandoned at any time thereafter while the property is in foreclosure.
B. 
Property registration fees are due and payable upon filing of the required notice and thereafter on or before January 1 of each year.
C. 
Property registration fees shall be considered a municipal charge pursuant to the Tax Sale Law, N.J.S.A. 54:5-1 et seq.
D. 
Late and unpaid property registration fees are subject to interest pursuant to N.J.S.A. 54:4-67.
A. 
A creditor filing a summons and complaint in an action to foreclose is responsible for the care, maintenance, security, and upkeep of the exterior of any property that is or becomes vacant and abandoned while registered in the property registration program.
B. 
The duties and obligations imposed upon creditors pursuant to Subsection A include, but are not limited to, the following:
(1) 
Compliance with the provisions of Chapter 197, Property Maintenance, of the Code of the Borough of Rockaway.
(2) 
Compliance with any and all other applicable provisions of the Borough Code.
C. 
Creditors, or authorized agents, of vacant and abandoned properties registered hereunder must provide the Borough with reasonable access thereto for the purpose of conducting interior and exterior inspections to determine compliance with this section. The Borough shall provide reasonable notice of such inspections, which will be carried out during regular business hours, or at such other times as circumstances warrant or as agreed to by the parties.
A. 
The provisions of this article shall be enforceable by the Construction Official, Zoning Officer, Health Officer, Fire Official, Property Maintenance Officer, Borough Engineer, or any such other authorized officer or employee of the municipality authorized to enforce the provisions of the Borough Code, all of whom, unless otherwise specified by ordinance or state law, shall be considered the "enforcement official" for purposes of this article and Article III of this chapter.
B. 
Upon a determination that a creditor has violated this chapter, the enforcement official is empowered to issue notices of violation. In cases where the charge is failure to provide care, maintenance, security, and upkeep of the exterior of vacant and abandoned property, such notices shall require that the violation be corrected within 30 days of receipt, or within 10 days of receipt if the violation presents an imminent threat to public health and safety.
A. 
An out-of-state creditor found by the Municipal Court, or other court of competent jurisdiction, to be in violation of the requirement set forth in § 197-41F to appoint an in-state representative shall be subject to a fine of $2,500 for each day of the violation. These fines shall commence on the first day after the close of the ten-day period, set forth N.J.S.A. 46:10B-51; P.L. 2021, c. 444, § 2[1]; and Article III of this chapter, for providing notice to the Municipal Clerk that a summons and complaint in an action to foreclose on a mortgage has been served.
[1]
Editor's Note: See N.J.S.A. 40:48-2.12s2.
B. 
A creditor found by the Municipal Court, or other court of competent jurisdiction, to be in violation of any other provision of this article, except for the violation covered under the preceding subsection, 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 in cases where 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.
Notwithstanding any other contrary provisions of this chapter, Fannie Mae, Freddie Mac and any loan servicers acting on their behalf are exempt from payment of any registration fee for any property registered under this chapter as well as from payment of any fines or penalties otherwise permitted to be assessed under this chapter or any other provision of the Borough Code.