[Adopted 6-21-2023 by Ord. No. 12-23]
Pursuant to P.L. 2021, c. 444, municipalities are allowed to
establish a property registration program and fee schedules relative
to properties within the municipality where a summons and comments
for foreclosure are filed. Additionally, the Township Committee determined
that it is in the public interest for the Township of Morris to establish
a property registration program and applicable fee schedule, on the
creditors or other responsible parties of properties against which
a summons and complaint for foreclosure are filed, in order to protect
the health, safety and general welfare of the residents of the Township
of Morris.
As used in this article, the following terms shall have the
meanings indicated:
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 the 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 purposes of this section. For purposes
of this section, 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 that is not legally occupied by a mortgagor or
tenant, which is in such condition that it cannot be legally reoccupied
because of the presence or finding of at least two of the following:
Overgrown or neglected vegetation;
Dead trees;
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 furnishing 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 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.
Residential real estate with respect to which the mortgagee
proves, by clear and convincing evidence, that the mortgaged real
estate is vacant and has been abandoned or where a notice of violation
has been issued. Where a notice of violation has not been issued pursuant
to this article, real property shall be deemed "vacant and abandoned"
if the court finds that the mortgaged property is not occupied by
a mortgagor or tenant as evidenced by a lease agreement entered into
prior to the service of a notice of intention to commence foreclosure
according to Section 4 of the "Fair Foreclosure Act," P.L. 1995, c.
244 (N.J.S.A. 2A:50-56), and at least two of the following conditions
exist:
Overgrown or neglected vegetation;
Dead trees;
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 furnishing and personal items;
Statements of neighbors, delivery persons, representatives of
a common interest community association, or government employees indicating
that the residence 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, exists 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 the Township
authorities declaring the property to be unfit for occupancy and to
remain vacant and unoccupied;
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;
A written statement issued by any mortgagor expressing the clear
intent of all mortgagors to abandon the property;
Any other reasonable indicia of abandonment.
Except that a residential property shall not be considered "vacant
and abandoned" if, on the property:
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;
There is a building occupied on a seasonal basis, but otherwise
secure; or
There is a building that is secure but is the subject of a probate
action, action to quiet title, or other ownership dispute.
A.
A creditor serving a summons and complaint in an action to foreclose
on a mortgage on commercial property in the Township shall, within
10 days of serving the summons and complaint, notify the Township
Clerk and the Mayor that a summons and complaint in an action to foreclose
on a mortgage has been filed against the subject property.
B.
The notice shall contain the full name, address, and telephone number
for the representative of the creditor who is responsible for receiving
complaints of property maintenance and code violations and the full
name and contact information for 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. The
notice shall also include the street address, lot, and block number
of the property. The notice may contain information about more than
one property, and shall be provided by regular mail or electronic
communication. The Township Clerk shall forward a copy of the notice
to the Public Officer.
C.
In the event the creditor has served a summons and complaint in a
foreclosure action on a commercial property and the creditor is located
out-of-state, the notice shall also contain the full name, address,
and telephone number of an in-state representative or agent who shall
be responsible for the care, maintenance, security, and upkeep of
the exterior of the property if it becomes vacant and abandoned.
D.
If there is any change in the name, address, or telephone number
for a representative, agent or individual authorized to accept service
on behalf of a creditor required to be provided in a notice following
the filing of the summons and complaint, the creditor shall provide
a notice to the Township Clerk containing the updated name, address,
or telephone number within 10 days of the change in that information.
E.
Within 30 days following the effective date of this article, any
creditor that has initiated a foreclosure proceeding on any commercial
property that is pending in the Superior Court shall provide to the
Township Clerk a listing of all commercial properties in the Township
for which the creditor has foreclosure actions pending by street address
and lot and block number. The Township Clerk shall forward a copy
of the notice to the Public Officer.
F.
If the owner of a commercial property vacates or abandons any property
on which a foreclosure proceeding has been initiated or if a commercial
property becomes vacant at any point subsequent to the creditor'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
creditor or any other third party, and the exterior of the property
is found to be a nuisance or in violation of any applicable state
or local code, the Township Clerk or her designee shall notify the
creditor or the representative or agent of an out-of-state creditor,
as applicable, which shall have the responsibility to abate the nuisance
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 required by state law and Township ordinance.
G.
In addition to the notice of violation, the municipality shall include
a description of the conditions that gave rise to the violation. The
creditor shall have 30 days from receipt of the notice to remedy the
violation. If the creditor fails to remedy the violation within that
time period, the Township shall impose penalties allowed for the violation
of Township ordinances.
H.
If the Township expends public funds in order to abate a nuisance
or correct a violation on a commercial property after the creditor
was given notice, as set forth herein, 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 title
owner of the property, including but not limited to the recourse provided
under Section 23 of P.L. 2003, c. 210 (N.J.S.A. 55:19-100).
A.
In addition to the notice requirements set forth in § 385-32, residential and commercial properties within the Township for which a summons and complaint has been filed in a foreclosure action must be registered with the Township of Morris' property registration program as a property in foreclosure.
B.
As part of the registration, the creditor shall provide:
(2)
Identify the date the summons and complaint in an action to foreclosure
on a mortgage was filed against the subject property, the court in
which it was filed and the docket number of the filing; and
C.
If there is any change in the name, address or telephone number for
a representative, agent, or individual authorized to accept service
on behalf of a creditor, the creditor shall update the property registration
program within 10 days of the change in that information.
D.
If the registered property becomes vacant and abandoned after the
property is initially registered with the Township, the creditor shall
update the property registration with the Township to reflect the
change in the property's status.
E.
The creditor shall be responsible for the care, maintenance, security
and upkeep of the exterior of the property if the property is vacant
and abandoned at any time while the property is registered with the
property registration program.
F.
A creditor located out-of-state shall be responsible for appointing
an in-state representative or agent to act for the creditor.
G.
If the property is or becomes vacant and abandoned, the creditor
shall maintain the property clean of debris and in good repair, free
of broken window glass, loose shingles, crumbling stone or excessive
peeling paint or other condition reflective of deterioration or inadequate
maintenance, the property shall be secure against unauthorized entry,
and post a sign affixed to the inside of the property and visible
to the public indicating the name, address, and telephone number of
the creditor or an out-of-state creditor's in-state representative
or agent for the purpose of receiving service of process or acquire
and otherwise maintain liability insurance by procuring a vacancy
policy, covering any damage to any person or any property caused by
any physical condition of the property while registered with the Township's
property registration program.
H.
Any commercial property must be compliant with the New Jersey Fire
Code. Temporarily unoccupied buildings, structures, premises or portions
thereof, including tenant spaces, shall be safeguarded and maintained
in accordance with Sections 311.1.1 through 311.6.
I.
The creditor of such a residential or commercial property shall pay
a registration fee of $500 per property annually to register the property
in the Township's property registration program. However, if
the property is vacant or abandoned when the summons and complaint
is filed in an action to foreclose or becomes vacant and abandoned
at any time thereafter while the property is in foreclosure, an additional
$2,000 shall be paid annually by the creditor.
J.
Notwithstanding the provisions of N.J.S.A. 40A:5-15 to the contrary,
any property registration fees imposed pursuant to this article and
collected by a third-party entity shall be paid over to the Township
within the time frame specified in the contract between the Township
and the third-party entity. Amounts collected by the third-party entity
on behalf of the Township shall be paid over in full to the Township
without any amount deducted as payment for services rendered by the
third-party entity. Once the collected fees are paid over to the Township,
the officer charged with custody of the general funds shall deposit
all such funds within 48 hours after the receipt thereof to the credit
of the Township in its designated legal depository. A third-party
entity shall collect and pay over to the Township any interest and
penalties, based upon the rate of interest and penalties fixed by
the governing body of the Township for late payment of property taxes,
assessments, and other Township charges pursuant to N.J.S.A. 54:4-67,
for late payment of the property registration fees imposed herein.
The third-party entity shall at least once a year, or as requested
by the Township's Tax Collector, enforce tax liens for all unpaid
property registration program fees due and owing at the time the certification
is filed.
K.
The Municipal Code Enforcement Officer or his/her designee shall
issue a notice of violation to the creditor for any violations of
this article. If the violation is for failure to provide care, maintenance,
security or upkeep of the exterior of vacant and abandoned property,
the notice shall require the creditor to correct the violation within
30 days of receipt of the notice. However, if the violation presents
an imminent threat to the public health and safety, the creditor shall
correct the violation within 10 days of receipt of the notice.
L.
An out-of-state creditor found by the Township's Municipal Court or by any other court of competent jurisdiction to be in violation of the requirement to appoint an in-state representative or agent pursuant to this article shall be subject to a fine of $2,500 for each day of the violation. Any fines imposed on a creditor for the failure to appoint an in-state representative or agent shall commence on the day after the ten-day period set forth in § 385-32 for providing notice to the Township Clerk that a summons and complaint in an action to foreclose on a mortgage has been served.
M.
A creditor found in violation of this article, other than the violation
above, 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.
N.
No less than 20% of any monies collected pursuant to this article
shall be utilized for the Township's code enforcement purposes.
O.
The Township may contract with and set the compensation of a private
entity, pursuant to the "Local Public Contracts Law," P.L. 1971, c.
198 (N.J.S.A. 40A:11-1 et seq.), to assist in the implementation and
administration of the property registration program established herein.
Further, the Township may delegate to such private entity some or
all duties of the Township under the property registration program,
including, and without limitation, identifying properties located
within the municipality that are subject to the registration requirements,
maintaining and updating the property registrations for the Township,
communicating with the creditors and/or in-state representatives of
agents appointed by out-of-state creditors, invoicing and collecting
payment from the creditors for such properties any fees authorized
by this article and P.L. 2021, c. 444.
P.
The Township may enter into a shared services agreement pursuant
to the "Uniform Shared Services and Consolidation Act," P.L. 2007,
c. 63 (N.J.S.A. 40A:65-1 et seq.).
Q.
Property registration fees imposed pursuant to this article shall
be considered a municipal charge pursuant to the "Tax Sale Law," N.J.S.A.
54:5-1 et seq., regardless of whether the fees are being collected
by a third-party entity or by the municipality directly.
R.
The Local Finance Board of the Department of Community Affairs may
adopt rules and regulations pertaining to contracts, entered pursuant
to this section, with third-party entities for the implementation
and administration of a property registration program.
