[HISTORY: Adopted by the Board of Commissioners of the Township
of Haddon 3-28-2023 by Ord. No. 1435[1]. Amendments noted where applicable.]
As used in this chapter, the following terms shall have the
meanings indicated:
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 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.
Any person, persons, or entity who is not the owner, who
has charge, care, and control of a premises or part thereof, with
or without the knowledge, consent, or authority of the owner. "Operator"
shall also include a creditor as defined below.
Includes the title holder, any agent of the title holder
having authority to act with respect to a vacant property, and foreclosing
entity subject to the provisions of P.L. 2021, c. 444,[1] or any other entity determined by the Township to have
authority to act with respect to the property.
Any property not legally occupied by an owner 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:
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 Township building, housing, or
similar Code section during the preceding year, or an order by Township
authorities declaring the property to be unfit for human occupancy
and to remain vacant and unoccupied;
A 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.
[1]
Editor's Note: See N.J.S.A. 40:48-2.12s1 et seq.
A.
The Compliance Officer, or such other public officer designated or
appointed by the Board of Commissioners pursuant to N.J.S.A. 40:48-2.5,
shall identify abandoned property within the Township of Haddon for
the purpose of establishing an abandoned property list. The abandoned
property list shall include, for each abandoned property identified,
the tax block and lot number, the name of the owner of record, if
known, and the street address of the lot. The Compliance Officer,
or such other public officer designated or appointed by the Board
of Commissioners pursuant to N.J.S.A. 40:48-2.5, may add properties
to the abandoned property list at any time and may delete properties
at any time when he or she finds that the property no longer meets
the definition of an abandoned property.
B.
An abandoned property shall not be included on the abandoned property
list if rehabilitation is being performed in a timely manner, as evidenced
by building permits issued and diligent pursuit of rehabilitation
work authorized by those permits. A property on which an entity other
than the Township of Haddon has purchased or taken assignment from
the Township of a tax sale certificate which has been placed on the
abandoned property list may be removed if the owner of the certificate
pays all municipal taxes and liens due on the property within 30 days
after the property is placed on the list; provided, however, that
if the owner of the certificate fails to initiate foreclosure proceedings
within six months after the property was first placed on the list,
the property shall be restored to the abandoned property list in accordance
with the provisions of N.J.S.A. 55:19-103.
C.
The Compliance Officer, or such other public officer designated or
appointed by the Board of Commissioners pursuant to N.J.S.A. 40:48-2.5,
shall establish the abandoned property list and any additions or deletions
thereto by authorizing the publication of the list in the official
newspaper of the Township of Haddon, which publication shall constitute
public notice, and, within 10 days after publication, shall send a
notice, by certified mail, return receipt requested, and by regular
mail, to the owner of record of every property included on the list.
The published and mailed notices shall identify property determined
to be abandoned, setting forth the owner of record, if known, the
tax lot and block number, and the street address. The Compliance Officer,
or such other public officer designated or appointed by the Board
of Commissioners pursuant to N.J.S.A. 40:48-2.5, in consultation with
the Tax Collector, shall also send out a notice, by regular mail,
to any mortgagee, servicing organization, or property tax processing
organization that receives a duplicate copy of the tax bill pursuant
to N.J.S.A. 54:4-64d. When the owner of record is not known for a
particular property and cannot be ascertained by the exercise of reasonable
diligence by the Tax Collector, notice shall not be mailed but instead
shall be posted on the property in the manner as provided in N.J.S.A.
40:48-2.7. The mailed notice shall indicate the factual basis for
the finding of the Compliance Officer, or such other public officer
designated or appointed by the Board of Commissioners pursuant to
N.J.S.A. 40:48-2.5, that the property is abandoned property, as that
term is defined herein and in N.J.S.A. 55:19-54, and shall specify
the information relied upon in making such finding. In all cases,
a copy of the mailed or posted notice shall also be filed by the Compliance
Officer, or such other public officer designated or appointed by the
Board of Commissioners pursuant to N.J.S.A. 40:48-2.5, in the office
of the Camden County Clerk. This filing shall have the same force
and effect as a formal notice under N.J.S.A. 2A:15-6. The notice shall
be captioned with the name of the Township of Haddon as "plaintiff"
and the name of the property owner as "defendant," as though an action
had been commenced by the Township against the owner.
D.
An owner or lienholder may challenge the inclusion of his property
on the abandoned property list by appealing that determination to
the Board of Commissioners within 30 days of the owner's receipt
of the certified notice or 40 days from the date upon which the notice
was sent. An owner whose identity was not known to the Compliance
Officer, or such other public officer designated or appointed by the
Board of Commissioners pursuant to N.J.S.A. 40:48-2.5, shall have
40 days from the date upon which notice was published or posted, whichever
is later, to challenge the inclusion of a property on the abandoned
property list. For good cause shown, the Board of Commissioners shall
accept a late filing of an appeal. Within 30 days of receipt of a
request for an appeal of the findings contained in the notice, the
Board of Commissioners shall schedule a hearing for redetermination
of the matter. Any property included on the list shall be presumed
to be abandoned property unless the owner, through the submission
of an affidavit or certification asserting that the property is not
an abandoned property, can demonstrate that the property was erroneously
included on the list. The affidavit or certification shall be accompanied
by supporting documentation, such as, but not limited to, photographs,
repair invoices, bills and construction contracts. The sole ground
for appeal shall be that the property in question is not abandoned
property as that term is defined herein and in N.J.S.A. 55:19-54.
The Board of Commissioners shall decide any timely filed appeal within
10 days of the hearing on the appeal and shall promptly, by certified
mail, return receipt requested, and by regular mail, notify the property
owner of the decision and the reasons therefor.
E.
The property owner may challenge an adverse determination of an appeal with the Board of Commissioners pursuant to Subsection D of this § 187-2, by instituting, in accordance with the New Jersey Court Rules, a summary trial proceeding in the Superior Court, Camden County. Such action shall be instituted within 20 days of the date of the notice of decision mailed by the Board of Commissioners. The sole ground for appeal and new hearing before the Superior Court shall be that the property in question is not an abandoned property, as that term is defined in N.J.S.A. 55:19-54. The failure to institute an action of appeal on a timely basis shall constitute a jurisdictional bar to challenging the adverse determination, except that, for good cause shown, the court may extend the deadline for instituting the action.
F.
The Township shall promptly remove any property from the abandoned
property list that has been determined by the Board of Commissioners
or on appeal not to be abandoned and may, in its discretion, remove
properties from said list whenever the Board of Commissioners deems
such removal appropriate under the circumstances.
G.
The abandoned property list shall become effective, and the Township
of Haddon shall have the right to pursue any legal remedy with respect
to properties on the list, at any time after at least one property
has been placed on the list and following the expiration of the period
for appeal with respect to that first property or upon the denial
of an appeal brought by the property owner of that first property.
A.
Any interested party may submit a written request to the Board of
Commissioners asserting that any property within the Township of Haddon
should be included on the abandoned property list. The written request
must specify the street address and block and lot number of the property
to be included and the grounds for its inclusion. Within 30 days of
receipt of any such request, the Board of Commissioners shall provide
a written response to the party, either indicating that the property
will be added to the list or, if not, the reasons for not adding the
property. For the purposes of this section, the term "interested parties"
shall include any resident of the Township of Haddon, any owner or
operator of a business within the Township of Haddon or any organization
representing the interests of residents, business owners or otherwise
engaged in furthering the revitalization and improvement of the neighborhood
in which the property is located.
B.
Any interested party may participate in a redetermination hearing
regarding the inclusion of a property on the abandoned property list.
Upon written request by any interested party, the Board of Commissioners
shall provide that party with at least 20 days' notice of any
such hearing. The party shall provide the Board of Commissioners with
notice at least 10 days before the hearing of its intention to participate
and the nature of the testimony or other information that it proposes
to submit at the hearing.
A.
An owner may request removal of their property from the abandoned
property list prior to sale of the tax sale certificate by paying
all taxes and Township liens due, including interest and penalties,
and:
(1)
By posting cash or a bond equal to the cost of remediating all conditions
because of which the property has been determined to be abandoned
pursuant to N.J.S.A. 55:19-55 and by posting cash or a bond to cover
the cost of any environmental cleanup required on the property, evidenced
by a certification by a licensed engineer retained by the owner and
reviewed and approved by the Board of Commissioners, stating that
the cash or bond adequately covers the cost of the cleanup; or
(2)
By demonstrating to the satisfaction of the Board of Commissioners
that the conditions rendering the property abandoned have been remediated
in full; provided, however, that where the Board of Commissioners
finds that the owner is actively engaged in remediating the conditions
because of which the property was determined to be abandoned, as evidenced
by significant rehabilitation activity on the property, the Board
of Commissioners may grant an extension of time of not more than 120
days for the owner to complete all work, during which time no further
proceedings will be taken against the owner or the property.
B.
If the owner has posted cash or a bond in order to have a property
removed from the abandoned property list and the conditions because
of which the property was determined to be abandoned have not been
fully remediated within one year of the date of posting the cash or
bond, or, in the case of a property which requires a remediation of
any known, suspected or threatened release of contaminants, if the
owner has failed to enter into a memorandum of agreement with the
New Jersey Department of Environmental Protection or an administrative
consent order, as the case may be, or if an agreement or order is
in effect but the owner has failed to perform the remediation in conformance
with the agreement or order, then the cash or bond shall be forfeited
to the Township, which shall use the cash or bond and any interest
which has accrued thereon for the purpose of demolishing or rehabilitating
the property or performing the environmental remediation. Any funds
remaining after the property has been demolished, rehabilitated or
cleaned up shall be returned to the owner.
A.
Notwithstanding the provisions of N.J.S.A. 54:5-19, or the provisions
of any other law to the contrary, if a property is included on the
abandoned property list and the property taxes or other Township liens
due on the property are delinquent for six or more quarters as of
the date of expiration of the right to appeal the property's
inclusion on the list or, if an appeal has been filed, as of the date
that all opportunities for appeal of inclusion on the list have been
exhausted, then the tax lien on the property may be sold in accordance
with the procedures of the Tax Sale Law, N.J.S.A. 54:5-1 et seq.,
on or after the 90th day following the expiration of that time of
appeal or final determination on an appeal.
B.
The Township of Haddon may, at its option, require that the sale
of the tax sale certificate or any subsequent assignment or transfer
of a tax sale certificate held by the Township be subject to the express
condition that the purchaser or assignee shall be obliged to perform
and conclude any rehabilitation or repairs necessary to remove the
property from the abandoned property list pursuant to N.J.S.A. 55:19-55
and to post a bond in favor of the Township to guarantee the rehabilitation
or repair of the property. The Board of Commissioners may waive a
requirement to post a bond imposed by the Township for any purchaser,
assignee or transferee of a tax sale certificate that provides documentation
acceptable to the Board of Commissioners that the purchaser, assignee
or transferee is a qualified rehabilitation entity as defined in N.J.S.A.
55:19-80. The cost of rehabilitation and repairs and the cost of the
bond shall be added to the amount required to be paid by the owner
for redemption of the property. The purchaser, assignee or transferee
of the tax sale certificate who is required to rehabilitate and repair
the property shall be required to file the appropriate affidavits
with the Tax Collector, pursuant to N.J.S.A. 54:5-62, representing
the amounts of moneys expended periodically toward the rehabilitation
or repair of the property. A purchaser, assignee or transferee shall
be entitled to interest on the amounts expended, as set forth in the
affidavits, at the delinquent rate of interest for delinquencies in
excess of $1,500 in effect for the time period when the amounts were
expended, pursuant to N.J.S.A. 54:4-67. The tax sale certificate purchaser,
assignee or transferee, with the authority of the Township of Haddon,
shall be permitted to enter in and upon the property for the purposes
of appraising the costs of rehabilitation and repair and to perform
all other acts required to guarantee the completion of the rehabilitation
or repair of the property. No rehabilitation or repair work shall
be commenced, however, until proof of adequate liability insurance
and an indemnification agreement, holding the Township of Haddon harmless,
has been filed with the Township Clerk.
C.
If the Township of Haddon acquires the tax sale certificate for a
property on the abandoned property list, then, upon 10 days'
written notice to the property owner and any mortgagee as of the date
of the filing of the notice pursuant to N.J.S.A. 55:19-55, the Township
shall be permitted to enter upon the property and remediate any conditions
that caused the property to be included on the abandoned property
list. No remediation shall be commenced, however, if, within that
ten-day period, the owner or mortgagee shall have notified the Township,
in writing, that the owner or mortgagee has elected to perform the
remediation itself. When the owner or mortgagee elects to perform
the remediation itself, it shall be required to post bond in favor
of the Township of Haddon in order to ensure performance. The amount
and conditions of the bond shall be determined by the Board of Commissioners.
D.
The cost of remediation incurred by the Township of Haddon, as so
certified by the entity incurring the cost upon completion of the
remediation, shall constitute a lien upon the property first in time
and right to any other lien, whether the other lien was filed prior
to or after the filing of any lien by the Township, except for Township
taxes, liens and assessments and any lien imposed pursuant to the
Spill Compensation and Control Act, N.J.S.A. 58:10-23.11 et seq.,
together with any interest thereon. The certification of cost shall
be filed and recorded as a lien by the entity incurring the cost with
the Camden County Clerk.
E.
The clearance, development, redevelopment, or repair of property
being maintained as an abandoned property pursuant to this chapter
shall be considered a public purpose and public use, for which the
power of eminent domain may be lawfully exercised.
A.
The Township of Haddon may hold special tax sales with respect to
those properties eligible for tax sale pursuant to N.J.S.A. 54:5-19
which are also on the abandoned property list.
B.
The Board of Commissioners shall establish criteria for eligibility
to bid on properties at the sale, which may include, but need not
be limited to:
(1)
Documentation of the bidder's ability to rehabilitate or otherwise
reuse the property consistent with Township plans and regulations;
commitments by the bidder to rehabilitate or otherwise reuse the property,
consistent with Township plans and regulations;
(2)
Commitments by the bidder to take action to foreclose on the tax
lien by a date certain; and
(3)
Such other criteria, as the Board of Commissioners may determine,
if necessary to ensure that the properties to be sold will be rehabilitated
or otherwise reused in a manner consistent with the public interest.
C.
The Board of Commissioners may establish minimum bid requirements
for a special tax sale that are less than the full amount of the taxes,
interest and penalties due, to help ensure that the properties will
be rehabilitated or otherwise utilized in a manner consistent with
the public interest.
D.
The Board of Commissioners may combine properties in said special
tax sale into bid packages and require that bidders place a single
bid on each package, rejecting any and all bids on individual properties
that are submitted.
E.
The Board of Commissioners may sell said properties subject to the
provision that, if the purchaser fails to carry out any commitment
that has been set forth as a condition of sale or misrepresents any
material qualification that has been established as a condition of
eligibility to bid pursuant thereto, then the properties and any interest
thereto acquired by the purchaser shall revert to the Township, and
any amount paid by the purchaser at the special tax sale shall be
forfeit to the Township.
F.
In the event there are two or more qualified bidders for any property
or bid package in a special tax sale, the Township may designate the
unsuccessful qualified bidder whose bid was closest to the successful
bid as an eligible purchaser. In the event that the selected purchaser
of that property or bid package fails to meet any of the conditions
of sale established by the Township pursuant to this section and his/her/its
interest in the property or properties reverts to the Township, the
Township may subsequently designate the entity previously designated
as an eligible purchaser as the winning bidder for the property or
properties and assign the tax sale certificates to that entity on
the basis of that entity's bid at the special tax sale, subject
to the terms and conditions of the special tax sale.
G.
The Township of Haddon shall provide notice of a special tax sale
pursuant to N.J.S.A. 54:5-26. The notice shall include any special
terms of sale established by the Township pursuant to this section.
Nothing shall prohibit the Township from holding a special tax sale
on the same day as a standard or accelerated tax sale.
A.
When a person or entity other than the Township of Haddon acquires
a tax sale certificate for a property on the abandoned property list
at tax sale, the purchaser may institute an action to foreclose the
right of redemption at any time after the expiration of just six months
following the date of the sale of the tax sale certificate.
B.
When the Township of Haddon is the purchaser at tax sale of any property
on the abandoned property list pursuant to N.J.S.A. 54:5-34, an action
to foreclose the right of redemption may be instituted in accordance
with the provisions of Subsection b of N.J.S.A. 54:5-77.
C.
After the foreclosure action is instituted, the right to redeem shall
exist and continue to exist until barred by the judgment of the Superior
Court; provided, however, that no redemption shall be permitted except
where the owner:
(1)
Posts cash or a bond equal to the cost of remediating the conditions
because of which the property was determined to be abandoned pursuant
to N.J.S.A. 55:19-56, as determined by the Court; or
(2)
Demonstrates to the Court that the conditions because of which the
property was determined to be abandoned have been remedied in full.
A.
If an entity other than the Township of Haddon has purchased or taken
assignment from the Township of a tax sale certificate on a property
that has not been legally occupied for a period of six months, that
property shall not be added to the abandoned property list under the
following limited circumstances:
(1)
The owner of the certificate continued to pay all Township taxes
and liens on the property in the tax year when due; and
(2)
The owner of the certificate takes action to initiate foreclosure
proceedings within six months after the property is eligible for foreclosure
pursuant to either Subsection a or b of N.J.S.A. 54:5-86, as appropriate,
and diligently pursues foreclosure proceedings in a timely fashion
thereafter.
B.
A determination that a property is abandoned property under the provisions
of this chapter and N.J.S.A. 55:19-78 et seq. shall not constitute
a finding that the use of the property has been abandoned for purposes
of municipal zoning or land use regulation.
C.
Upon the request of a purchaser or assignee of a tax sale certificate
seeking to bar the right of redemption on an abandoned property pursuant
to Subsection b of N.J.S.A. 54:5-86, the Board of Commissioners or
the Tax Collector shall, in a timely fashion, provide the requester
with a certification that the property fulfills the definition of
an "abandoned property" according to the criteria established in N.J.S.A.
55:19-81 and 55:19-82.
A.
A summary action or other action to transfer possession and control
of abandoned property in need of rehabilitation to the Township of
Haddon may be brought by the Township in the Superior Court, Camden
County. If the court shall find that the property is abandoned and
that the owner or party in interest has failed to submit and initiate
a rehabilitation plan, then the court may authorize the Township to
take possession and control of the property and to develop its own
rehabilitation plan for the property.
B.
Where the Township has been granted possession and control, the Township
may commence and maintain further proceedings for the conservation,
protection or disposal of the property, or any part thereof, that
are required to rehabilitate the property, recoup the cost and expenses
of rehabilitation, and for the sale of the property; provided, however,
that the court shall not direct the sale of the property if the owner
applies to the court for reinstatement of control and possession of
the property as permitted by N.J.S.A. 55:19-92.
C.
Failure by the owner, mortgage holder or lienholder to submit a plan
for rehabilitation to the Township, obtain appropriate construction
permits or, in the alternative, submit formal applications for funding
the cost of rehabilitation to local, state or federal agencies providing
such funding, within the initial six-month period, shall be deemed
clear evidence that the owner has failed to take any action to further
the rehabilitation of the property.
D.
An owner may defend against a complaint filed pursuant to N.J.S.A.
55:19-84 by submitting a plan for the rehabilitation and reuse of
the property which is the subject of the complaint and by posting
a bond equal to 125% of the amount determined by the Board of Commissioners
or the court to be the projected cost of rehabilitation.
E.
Any plan submitted by an owner to defend against a complaint shall
be submitted within 60 days after the complaint has been filed, unless
the court provides the owner with an extension of time for good cause
shown. A plan submitted by an owner pursuant to this section shall
include, but not be limited to:
(1)
A detailed financial feasibility analysis, including documentation
of the economic feasibility of the proposed reuse, including operating
budgets or resale prices, or both, as appropriate;
(2)
A budget for the rehabilitation of the property, including sources
and uses of funds, based on the terms and conditions of realistically
available financing, including grants and loans;
(3)
A timetable for the completion of rehabilitation and reuse of the
property, including milestones for performance of major steps leading
to and encompassing the rehabilitation and reuse of the property;
and
(4)
Documentation of the qualifications of the individuals and firms
that will be engaged to carry out the planning, design, financial
packaging, construction, and marketing or rental of the property.
F.
Where the court approves the rehabilitation plan of the owner or
other party in interest, then it may appoint the Board of Commissioners
to act as monitor of compliance and progress. If the owner fails to
carry out any step in the approved plan, then the Township may apply
to the court to have the posted bond forfeited, to transfer possession
of the building to the Township to complete the rehabilitation plan,
and to grant authorization to use the bond proceeds for the rehabilitation.
The owner or other party in interest shall provide bimonthly reports
to the Board of Commissioners on its activities and progress toward
rehabilitation and reuse of the property.
G.
If an owner is unsuccessful in defending against a complaint filed
pursuant to N.J.S.A. 55:19-84, the mortgage holder or lienholder may
seek to be designated in possession of the property by submitting
a plan and posting a bond meeting the same conditions as set forth
in N.J.S.A. 55:19-87. His/her/its plan must be submitted within 60
days following the court's rejection of the owner's plan,
unless the court provides the mortgage holder or lienholder with an
extension of time for good cause shown. If the court approves any
such mortgage holder or lienholder's plan, it shall designate
that party to be in possession of the property for purposes of ensuring
its rehabilitation.
H.
The mortgage holder or lienholder, as the case may be, shall provide
bimonthly reports to the court and the Board of Commissioners on its
activities and progress toward rehabilitation and reuse of the property.
If the mortgage holder or lienholder fails to carry out any material
step in the approved plan, then the Board of Commissioners shall notify
the court, which may order the posted bond forfeit, grant the Township
possession of the property, and authorize the Township to use the
proceeds of the bond for rehabilitation of the property.
I.
Any sums incurred or advanced for the purpose of rehabilitating the
property by a mortgage holder or lienholder granted possession of
a property, including court costs and reasonable attorneys' fees,
may be added to the unpaid balance due to that mortgage holder or
lienholder, with interest calculated at the same rate set forth in
the note or security agreement or, in the case of a tax lienholder,
at the statutory interest rate for subsequent liens.
J.
If no mortgage holder or lienholder meets the conditions of N.J.S.A.
55:19-88, then the Township may submit a plan to the court which conforms
with the provisions of N.J.S.A. 55:19-87. Such plan shall designate
whether the Township or a qualified rehabilitation entity shall undertake
the rehabilitation plan in accordance with the provisions of N.J.S.A.
55:19-90.
A.
The Board of Commissioners may designate a qualified rehabilitation
entity for the purpose of exercising the Township's rights, where
that designation will further the rehabilitation and reuse of the
property consistent with Township plans and objectives.
B.
Regardless of whether the Township exercises its rights directly
or the Board of Commissioners designates a qualified rehabilitation
entity pursuant to this section, the Township shall maintain, safeguard,
and maintain insurance on the property while in possession of such
property. Notwithstanding the Township's possession of the property,
the owner of the property shall not be relieved of any civil or criminal
liability or any duty imposed by reason of acts or omissions of the
owner.
C.
The court may approve the borrowing of funds by the Township to rehabilitate
the property and may grant a lien or security interests with priority
over all other liens or mortgages other than municipal liens. Prior
to granting this lien priority, the court must find as follows:
(1)
The Township sought to obtain the necessary financing from the senior
lienholder, which declined to provide such financing on reasonable
terms;
(2)
The Township sought to obtain a voluntary subordination from the
senior lienholder, which refused to provide such subordination; and
(3)
Lien priority is necessary in order to induce another lender to provide
financing on reasonable terms. No lien authorized by the Court shall
take effect unless recorded with the Clerk of Camden County.
D.
Where the Township has designated a qualified rehabilitation entity
to act on its behalf, the qualified rehabilitation entity shall provide
bimonthly reports to the Board of Commissioners on its activities
and progress toward rehabilitation and reuse of the property. The
Township or qualified rehabilitation entity, as the case may be, shall
provide such reports to the court as the court determines to be necessary.
If the court finds that the Township or its designee has failed to
take diligent action toward rehabilitation of the property within
one year from the grant of possession, then the court may request
that the Township designate another qualified rehabilitation entity
to exercise its rights or, if the Township fails to do so, may terminate
the order of possession and return possession and control of the property
to its owner.
E.
The Township of Haddon shall file a notice of completion with the
court, and shall also serve a copy on the owner and any mortgage holder
or lienholder, at such time as the Township has determined that no
more than six months remain to the anticipated date on which rehabilitation
will be complete. This notice shall include an affidavit of the Board
of Commissioners, attesting that the rehabilitation is anticipated
to be completed within six months, and a statement setting forth the
actions as it plans to undertake consistent with the plan.
A.
An owner may petition for reinstatement of the owner's control
and possession of the property at any time after one year from the
court's removal of possession, but no later than 30 days after
the Township of Haddon has filed a notice of completion with the court
or, in the event the notice of completion is filed within less than
one year of the grant of possession, within 30 days after the Township
has filed said notice.
B.
The court may allow additional time for good cause if that additional
time does not materially delay completion of the rehabilitation, place
undue hardship on the Township or affect any of the terms or conditions
under which the Township has applied for or received financing for
the rehabilitation of the property.
C.
If the owner fails to petition for the reinstatement of control and
possession of the property within 30 days after the Township has filed
a notice of completion or, in any event, within two years after the
initial grant of possession, or if the owner fails to meet any conditions
that may be set by the court in granting a reinstatement petition,
the court may grant the Township title or authorize the Township to
sell the property, subject to the provisions of N.J.S.A. 55:19-96.
A.
The Board of Commissioners, with the approval of the court, may place
a lien on the property to cover any costs of the Township in connection
with any proceeding under N.J.S.A. 55:19-78 et seq., incurred prior
to the grant by the court of an order of possession, which may include
costs incurred to stabilize or secure the property to ensure that
it can be rehabilitated in a cost-effective manner. Any such lien
shall be considered a Township lien for the purposes of N.J.S.A. 54:5-9,
with the rights and status of a Township lien pursuant thereto.
B.
Where the Township seeks to gain title to the property, it shall
purchase the property for fair market value on such terms as the court
shall approve and may place the proceeds of sale in escrow with the
court.
C.
The court may authorize the Township of Haddon to sell the building
free and clear of liens, claims and encumbrances, in which event all
such liens, claims and encumbrances shall be transferred to the proceeds
of sale with the same priority as existed prior to resale in accordance
with the provisions of this section, except that municipal liens shall
be paid at settlement. The proceeds of the purchase of the property
shall be distributed as set forth in N.J.S.A. 55:19-97.
D.
Upon approval by the court, the Township shall sell the property
on such terms and at such price as the court shall approve and may
place the proceeds of sale in escrow with the court. The court shall
order a distribution of the proceeds of sale after paying court costs
in the order of priority set forth in N.J.S.A. 55:19-97.
E.
With the exception of the holding of special tax sales pursuant to
N.J.S.A. 55:19-101, the remedies available under N.J.S.A. 55:19-78
et seq. shall be available to the Township with respect to any abandoned
property, whether or not the Township has established an abandoned
property list and whether or not the property at issue has been included
on any such list.
A.
Every day that any of the provisions of this chapter are violated
by any person, firm or corporation, including an officer, director
or an employee of a corporation, shall be a separate and distinct
violation of this chapter.
B.
Any person, firm or corporation, including an officer, director or
employee of a corporation, who shall violate any provisions of this
article shall be subject to a penalty not to exceed the sum of $500
or be imprisoned in the county jail for a term not exceeding six months,
or both, for each and every violation.
The owner and/or operator of any vacant property that is not
the subject of an ongoing foreclosure action, as defined herein, shall,
within 30 calendar days after the building becomes vacant or abandoned
property or within 30 calendar days after assuming ownership of the
vacant property, whichever is later, or within 10 calendar days of
receipt of notice by the municipality, file a registration statement
for such vacant property with the Township Clerk on forms provided
by the Township for such purposes. Failure to receive notice by the
Township shall not constitute grounds for failure to register the
property.
A.
Each property having a separate block and lot number as designated
in official records of the municipality shall be registered separately.
B.
The registration statement shall include the name, street address,
telephone number and e-mail address (if applicable) of a person 21
years or older, designated by the owner and/or operator or owner and/or
operators as the authorized agent for receiving notices of code violations
and for receiving process in any court proceeding or administrative
enforcement proceeding on behalf of such owners and/or operators in
connection with the enforcement of any applicable code, and the name,
street address, telephone number and e-mail address (if applicable)
of the firm and the actual name(s) of the firm's individual principal(s)
responsible for maintaining the property. The individual or representative
of the firm responsible for maintaining the property shall be available
by telephone or in person on a twenty-four-hour-per-day, seven-day-per-week
basis. The two entities may be the same or different persons. Both
entities shown on the statement must maintain offices in the State
of New Jersey or reside within the State of New Jersey.
C.
The registration shall remain valid for one year from the date of
registration, except for the initial registration time, which shall
be prorated through December 31. The owner and/or operator shall be
required to renew the registration annually as long as the building
remains a vacant property.
D.
The annual renewal shall be completed by January 1 each year.
E.
The owner and/or operator shall notify the Township Clerk within
30 calendar days of any change in the registration information by
filing an amended registration statement on a form provided by the
Township Clerk for such purpose.
F.
The registration statement shall be deemed prima facie proof of the
statements therein contained in any administrative enforcement proceeding
or court proceeding instituted by the Township against the owners
and/or operators of the building.
The owner of any vacant property registered under this article
shall provide access to the Township and its officials to conduct
exterior and interior inspections of the building to determine compliance
with municipal codes, upon reasonable notice to the property owner
and/or operator or the designated agent. Such inspections shall be
carried out on weekdays during the hours of 8:00 a.m. and 4:00 p.m.,
or such other time as may be mutually agreed upon between the owner
and/or operator and the Township.
A.
An owner who meets the requirements of this article with respect
to the location of his or her residence or workplace in the State
of New Jersey may designate him or herself as agent or as the individual
responsible for maintaining the property.
B.
By designating an authorized agent under the provisions of this section,
the owner consents to receive any and all notices of code violations
concerning the registered vacant property and all process in any court
proceeding or administrative enforcement proceeding brought to enforce
code provisions concerning the registered building by service of the
notice or process on the authorized agent. Any owner who has designated
an authorized agent under the provisions of this section shall be
deemed to consent to the continuation of the agent's designation
for the purposes of this section until the owner notifies the Township
in writing of a change of authorized agent or until the owner files
a new annual registration statement.
C.
Any owner who fails to register vacant property under the provisions
of this article shall further be deemed to consent to receive by posting
on the building, in plain view, and by service of notice at the last
known address of the owner of the property on record within the Township
of Haddon by regular and certified mail, any and all notices of code
violations and all process in an administrative proceeding brought
to enforce code provisions concerning the building.
The owner and/or operator of any building that has become vacant
property, and any person maintaining or operating or collecting rent
for any such building that has become vacant, shall, within 30 days
thereof:
A.
Enclose and secure the building against unauthorized entry as provided
in the applicable provisions of the Township Code or as set forth
in the rules and regulations supplementing those codes; and
B.
Post a sign affixed to the building indicating the name, address and telephone number of the owner and/or operator, the owner and/or operator's authorized agent for the purpose of service of process (if designated pursuant to § 187-16 above), and the person responsible for the day-to-day supervision and management of the building, if such person is different from the owner and/or operator holding title or authorized agent. The sign shall be of a size and placed in such a location so as to be legible from the nearest public street or sidewalk, whichever is nearer, but shall be no smaller than eight inches by 10 inches.
C.
Secure the building from unauthorized entry and maintain the sign
until the building is again legally occupied or demolished or until
repair or rehabilitation of the building is complete; and
D.
Ensure that the exterior grounds of the structure, including yards,
fences, sidewalks, walkways, rights-of-way, alleys, retaining walls,
attached or unattached accessory structures and driveways, are well
maintained and free from trash, debris, loose litter and grass and
weed growth; and
E.
Continue to maintain the structure in a secure and closed condition,
keep the grounds in a clean and well-maintained condition (including,
but not limited to, maintaining grass areas and removing any temporary
stone surfaces), and ensure that the sign is visible and intact until
the building is again occupied or is demolished or until repaid and/or
rehabilitation of the building is complete; and
F.
If the owner of a residential property vacates or abandons any property on which a foreclosure proceeding has been initiated, or if a residential property becomes vacant at any point subsequent to the operator's filing the summons and complaint in an action to foreclose on a mortgage against the subject property, but prior to vesting of title in the operator or any other third party, and the property is found to be a nuisance and/or in violation of any of the provisions of this article, the Compliance Officer shall notify the operator, which shall have the responsibility to abate the nuisance and/or correct the violation in the same manner and to the same extent as the title owner of the property, to such standard or specification as may be required by state law or this article. The Township shall include a description of the conditions that gave rise to the violation with the notice of violation, and shall provide a period of not less than 30 days from the operator's receipt of the notice for the operator to remedy the violation. If the operator fails to remedy the violation within that time period, the Township may impose penalties allowed for such violations pursuant to § 187-20 of this article.
A.
The Township shall create and maintain a registry of all commercial
and/or residential properties within the Township 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 Township 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 Township 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 Township,
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 Township's registry, including registration fees, interest,
and penalties, shall be paid, in full, directly to the Township, or
Camden County, as applicable, not less than once per year, or as otherwise
directed by the Township's Zoning Officer or designee. 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 Township, 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 Township's registry shall file with 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 eligible for inclusion
on the Township's registry.
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 within the Township: i) prior to the effective date of this chapter; and ii) which is pending as of the effective date of this chapter, 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 within the Township, the creditor
shall notify the Township 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 this chapter;
(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 code violations;
(5)
The full name, address, and telephone number of any persons 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
(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 Township, creditors subject to the notice requirement shall
update the Township'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 Township pursuant to this section shall:
(1)
Register the property with the Township's property registration
program as a property in foreclosure within 30 days of notifying the
Township.
(2)
Be subject to the registration fee, notice requirements, and penalties
for noncompliance established within this chapter.
(3)
Update the property registration within 10 days of any change in
the information contained in the original notice to the Township.
(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 Township.
(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 Township's property
registration program;
(e)
Provide proof, within 10 days of receiving a request by the
Township 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/her designee shall notify the creditor
using the contact information provided in the property registry established
by this chapter.
A.
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 violation. The violation shall be deemed
to commence on the day after the creditor's initial ten- or thirty-day
requirement to notify the Township of applicable foreclosure actions.
B.
A creditor subject to the notice and registration requirements of
this chapter found to be in violation of any other section of this
chapter 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.
C.
If the Township 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 chapter, but failed
to abate the nuisance or correct the violation as directed, the Township
shall have the same recourse against the creditor as it would have
against the owner of the property, including but not limited to the
recourse provided under N.J.S.A. 55:19-100 et seq.
D.
For all other provisions of this article, any owner, operator or
occupant who or which shall violate any of the provisions of this
article shall, upon conviction in the Haddon Township Municipal Court
or any such other court having jurisdiction, be sentenced to a fine
not exceeding $1,000 or imprisonment for a term not exceeding 30 days,
or both. Each day that a violation occurs shall be deemed a separate
offense and subject to the penalty provisions of this chapter.
E.
For purposes of this article, failure to file a registration statement under § 187-14 within 30 calendar days after a building becomes vacant property or within 30 calendar days after assuming ownership of a vacant property, whichever is later, or within 10 calendar days of receipt of notice by the municipality, and failure to provide correct information on the registration statement, or failure to comply with the provisions of such provisions contained herein shall be deemed to be violations of this article.
The Township's Zoning Officer or his/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. 2021, c. 444.[1]
[1]
Editor's Note: See N.J.S.A. 40:48-2.12s1 et seq.
No less than 20% any money collected pursuant to this article
shall be utilized by the Township for municipal code enforcement purposes.
