[Added 3-21-2016 by Ord. No. 16-05; amended 9-18-2023 by Ord. No. 23-14]
It is the intent of this article, as further detailed within its enabling ordinance, to enable Salem City to engage in the identification, registration, monitoring 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.
A. 
Definitions. All words, terms, and phrases used within this Article shall be defined and interpreted consistent with their meanings as outlined within P.L. 2021, c. 444 as may be amended from time to time.
CREDITOR
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 21 39 of P.L. 2009, c. 53 (N.J.S.A. 17:11C-51 through C. 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. If the entity seeking to foreclose upon a residential or commercial mortgage changes as a result of an assignment, transfer or otherwise after filing a complaint in the Superior Court, the new entity shall be deemed the creditor 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.
OWNER
Shall include the titleholder, any agent of the titleholder having authority to act with respect to a vacant property.
VACANT AND ABANDONED
A property shall be deemed "vacant and abandoned" for purpose of this article if:
(1) 
The property is not legally occupied by a mortgagor or tenant; and
(2) 
Is in such a condition that it cannot be legally reoccupied because at least the presence of at least two of the following conditions:
(a) 
Overgrown or neglected vegetation;
(b) 
The accumulation of newspapers, circulars, flyers, or mail on the property;
(c) 
Disconnected gas, electric, or water utility services to the property;
(d) 
The accumulation of hazardous, noxious, or unhealthy substances or materials on the property;
(e) 
The accumulation of junk, litter, trash or debris on the property;
(f) 
The absence of window treatments such as blinds, curtains or shutters;
(g) 
The absence of furnishings and personal items;
(h) 
Statements of neighbors, delivery persons, or government employees indicating that the property is vacant and abandoned;
(i) 
Windows or entrances to the property that are boarded up or closed off, or multiple windowpanes that are damaged, broken and unrepaired;
(j) 
Doors to the property that are smashed through, broken off, unhinged, or continuously unlocked;
(k) 
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;
(l) 
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;
(m) 
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;
(n) 
A written statement issued by a mortgagor expressing the clear intent of all mortgagors to abandon the property; or
(o) 
Any other reasonable indicia of abandonment.
B. 
Standards for maintenance. The premises shall be kept free of litter, including without limiting the generality of the foregoing, discarded, windblown, deposited, dropped or strewn paper, wrappings, cardboard, bottles, cans, boxes and broken glass, and all of the nuisances and hazards to the safety of pedestrians and other persons having access to the premises and free of unsanitary conditions; and any of the foregoing shall be promptly removed and abated. The word "hazards" shall include, but is not limited to the following:
(1) 
Refuse: brush, weeds, broken glass, stumps, roots, obnoxious growths, filth, garbage, trash, rubbish, refuse and debris of any description.
(2) 
Natural growth: dead and dying trees and other natural growth which, by reason of rotting or deteriorating conditions or storm damage, are or may be dangerous to persons in the vicinity thereof. Trees shall be kept pruned and trimmed to prevent such conditions.
(3) 
Overhangings: loose, overhanging and projecting objects and accumulations of ice and snow which, by reason of location above ground level, constitute dangers to persons in the vicinity thereof.
(4) 
Ground surface and unsanitary conditions: holes, excavations, breaks, projections, obstructions and excretion of pets or other animals on paths, sidewalks, walks, driveways, parking lots and parking areas and other parts of the exterior of the premises which are accessible to and used by persons having access to such premises.
(5) 
Recurring accumulation of stormwater. Adequate runoff drains shall be provided and maintained to eliminate recurrent accumulations of stormwater.
(6) 
Sources of infestation.
(7) 
Foundation walls. Foundation walls shall be kept structurally sound, free from defects and damage and capable of bearing imposed loads safely.
(8) 
Chimneys and flue and vent attachments thereto. Chimneys and flue and vent attachments thereto shall be maintained structurally sound, safe, durable, smoke-tight and capable of withstanding the action of flue gases.
(9) 
Exterior porches, landings, balconies, stairs and fire escapes. Exterior porches, landings, balconies, stairs and fire escapes shall be provided with banisters or railings properly designed and maintained structurally sound, in good repair, well painted or otherwise provided with a protective treatment to prevent deterioration, and free from defects.
[1]
Editor's Note: See N.J.S.A. 40:48-2.12s1 et seq.
A. 
The City of Salem 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 a mortgage 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 City 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 City's Housing Officer, or his or 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.
C. 
Within 30 days of the effective date of this article, 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 City of Salem: (i) prior to the effective date of this article; and (ii) which is pending as of the effective date of this article; and (iii) is filed after the enactment of this article, shall provide notice in accordance with Subsection B of this section.
D. 
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 with the City of Salem, the creditor shall notify the City Clerk, or his or 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 article;
(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
(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 through the pendency of this foreclosure action. After initial notice to the City, creditors subject to the notice requirement shall update the City's property registration program within 10 days of any change in the information contained in the original or any subsequent notices.
E. 
Creditors of any commercial and/or residential mortgage required to notify the City pursuant to this section shall:
(1) 
Register the property with the City's property registration program as a property in foreclosure, within 30 days of notifying the City;
(2) 
Be subject to the registration fee, notice requirements and penalties for noncompliance established within this Article;
(3) 
Update the property registration within 10 days of any change in the information contained in the original notice to the City;
(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 City;
(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 in accordance with all laws, regulations, ordinances pertaining thereto;
(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) 
Provide proof, within 10 days of receiving a request by the City or its designee, that the above conditions have been satisfied. 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.
(e) 
Update the property registration within 10 days of the creditor becoming aware that the property is deemed vacant and abandoned as defined herein.
(f) 
Maintain liability insurance by procuring a vacancy policy that is sufficient to cover any damage to any person or property caused by any condition of the property while registered.
F. 
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 or her designee shall notify the creditor using the contact information provided in the property registry established by this article.
G. 
If the City expends public funds in order to abate a nuisance or correct a violation in situations in which the creditor was given notice pursuant to the provisions of this article and failed to abate the nuisance or correct the violation as directed, the City 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 21 of P.L. 2003, c. 210 (N.J.S.A. 55:19-100).
Under the authority of P.L. 2021, c. 444,[1] all registration fees established herein shall be deemed a municipal charge in accordance" the tax sale law" N.J.S.A. 54:5-1 et seq.
A. 
Creditors required to notify the City 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: $500.
B. 
If a property registered with the City'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 of $2,000 per property, due at the time the determination that the property is vacant and abandoned is made.
C. 
Violations.
(1) 
An out-of-state creditor subject to the notice and registration requirements of this article, found to be in violation of the requirement by a municipal court or other court of competent jurisdiction, 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 commence on the day after the ten-day period required by N.J.S.A. 46:10B-51 or N.J.S.A. 40:48-2.12s2 for providing notice to the Municipal Clerk that a summons and complaint in an action to foreclose on a mortgage has been served.
(2) 
A creditor subject to the notice and registration requirements of this article found to be in violation of any part of this article [with the exception of a violation pursuant to Subsection C(1) of this section, shall be subject to a fine of $1,500 for each day of the violation. Any fine imposed pursuant to this section shall commence 31 days after the notice of violation, except if the violation presents an imminent risk to public health and safety, in which case, any fine shall commence 11 days following receipt of the City's notice.
D. 
If the City 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 article, but failed to abate the nuisance or correct the violation as directed, the City 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.
[1]
Editor's Note: See N.J.S.A. 40:48-2.12s1 et seq.
No less than 20% of any money collected by the municipality pursuant to this article shall be utilized by the City for municipal code enforcement purposes.