[HISTORY: Adopted by the Board of Commissioners of the Borough
of Haddonfield 7-25-2022 by Ord. No. 2022-12.[1]. Amendments noted where applicable.]
[1]
Editor's Note: This ordinance also repealed former Ch. 176,
Registration of Defaulted Mortgages, adopted 3-14-2017 by Ord. No. 2017-02, as amended.
It is the intent of Chapter 176, as further detailed within its enabling Ordinance No. 2022-12, to enable the Borough of Haddonfield to engage in the identification, registration, monitoring, and mitigation of properties that are, or may become, vacant and abandoned to the fullest extent permitted by P.L. 2021, c. 444,[1] 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.
[1]
Editor's Note: See N.J.S.A. 40:48-2.12s1 et seq.
All words, terms, and phrases used within this chapter shall
be defined and interpreted consistent with their meanings as outlined
within P.L. 2021, c. 444,[1] 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,[2] 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 purposes
of this chapter if:
The property is not legally occupied by a mortgagor or tenant;
and
The property cannot be 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 had 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 of Haddonfield 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.[1] This registry will be formed and maintained to assist
the Borough of Haddonfield 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.
[1]
Editor's Note: See N.J.S.A. 40:48-2.12s1 et seq.
B.
The Borough of Haddonfield 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 of
Haddonfield, to:
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 of Haddonfield's registry, including registration
fees, interest, and penalties, shall be paid, in full, directly to
the Borough of Haddonfield, or Camden County/County Improvement Authority,
as applicable, not less than once per year, or as otherwise directed
by the Borough of Haddonfield's Administrator. No fees, payments,
expenses, or other deductions shall be made from this payment; payment
for any third party's services under this chapter shall be made
by the Borough of Haddonfield, 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 Community Development
Office, any third party administering the Borough of Haddonfield's
registry shall file with the Community Development Office a certification
identifying:
(a)
The address, block, lot, and contact information of any property
for which registration fees under this chapter are due and owing to
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 eligible for inclusion
on the Borough of Haddonfield's registry.
E.
The Borough of Haddonfield's Administrator or his/her designee
shall serve as the municipal official responsible for notifying creditors,
establishing and maintaining the registry, determining eligibility
of designation as a vacant and abandoned property under this chapter,
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. 2021, c. 444.[3]
[3]
Editor's Note: See N.J.S.A. 40:48-2.12s1 et seq.
A.
Within 30 days of the effective date of this chapter, 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 with the Borough of Haddonfield: 1) prior to the effective date of this chapter; and 2) which is pending as of the effective date of this chapter, shall provide notice in accordance with Subsection B of this § 176-4.
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 within the Borough of Haddonfield,
the creditor shall notify the Borough Clerk, or his/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 § 176-2, Definitions.
(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, and for receiving notice complaints of property maintenance
and code violations.
(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
throughout the pendency of the foreclosure action. After initial notice
to the Borough of Haddonfield, creditors subject to the notice requirement
shall update the Borough of Haddonfield'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 of Haddonfield pursuant to this section shall:
(1)
Register the property with the Borough of Haddonfield's property
registration program as a property in foreclosure within 30 days of
notifying the Borough of Haddonfield;
(2)
Be subject to the registration fee, notice requirements, and penalties for noncompliance established within § 176-5.
(3)
Update the property registration within 10 days of any change in
the information contained in the original notice to the Borough of
Haddonfield.
(4)
If the creditor is an out-of-state creditor, they must 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 of Haddonfield.
(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 property caused by any physical condition
of the property while registered with the Borough of Haddonfield's
property registry program.
(e)
Provide proof, within 10 days of receiving a request by the
Borough of Haddonfield 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 violations, 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 Community Development Director, or his/her designee, shall notify the creditor using the contact information provided in the property registry established by § 176-4B(4).
B.
Creditors required to notify the Borough of Haddonfield 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:
$250.
C.
If a property registered with the Borough of Haddonfield'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 $500.
D.
Violations.
(1)
An out-of-state creditor subject to the notice and registration requirements
of this chapter 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 violations. 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 Haddonfield of applicable foreclosure
actions.
(2)
A creditor subject the notice and registration requirements of § 176-4A found to be in violation of any part of this chapter (with the exception of a violation pursuant to a Subsection D(1) of § 176-4, 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 of Haddonfield 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 § 176-4B, but failed to abate the nuisance or correct the violation as directed, the Borough of Haddonfield 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 N.J.S.A. 55:19-100 et seq.
