City of Gloucester, NJ Creditor Obligations

§ 86B-6 Registration of real property by creditors.

Registration. Residential property or commercial property located in the City for which a summons and complaint has been filed in foreclosure by a creditor, whether or not vacant, shall be registered with the City Building and Housing Department by the creditor.

Registration of individual parcels. Each residential property and each commercial property having a separate tax block and lot designation shall be registered separately and is subject to the requirements of this chapter.

Initial registration. Property required to be registered pursuant to § 86B-6A and B shall be required to be registered within 10 days of the service of the summons and complaint in an action to foreclose, or if a summons and complaint has already been served as of the effective date of this chapter and the property has not previously registered as registered property, registration shall occur within 10 days of the effective date of this chapter.

Annual registration. The initial registration term shall commence immediately upon the receipt of the initial registration and registration fee and shall be valid through December 31 of that calendar year, at which time it shall expire, and an annual registration shall be required thereafter. Each annual registration shall be valid for one calendar year from January 1 through December 31, at which time it shall expire, and another annual registration shall be required. Properties subject to the registration requirements of this § 86B-6 shall maintain an annual registration, and shall comply with the security and maintenance standards of this Chapter 86B until the foreclosure action is dismissed or title to the residential property or commercial property is vested in the creditor or any other party.

Contents of registration. Registration pursuant to this section shall be on forms which shall be provided for that purpose, and which shall be obtained from the City Building and Housing Department, and shall contain the following information:

(1)

For in-state creditors:

(a)

The street address, lot and block number of the registered property;

(b)

The full name and street address at which the creditor maintains an office;

(c)

The creditor's telephone number, facsimile number and email address;

(d)

The name, telephone number, facsimile number and email address of a representative of the creditor who is responsible for receiving complaints of property maintenance and code violations, and/or who is responsible for the security and maintenance of the registered property;

(e)

The full name and contact information of an individual located within the state who is authorized to accept service on behalf of the creditor; and

(f)

A statement of whether the registered property is occupied or not, and if so, the name or names of all persons, legal entities or other parties legally occupying the registered property.

(2)

For out-of-state creditors:

(a)

The street address, lot and block number of the registered property;

(b)

The full name and street address at which the creditor maintains an office;

(c)

The creditor's telephone number, facsimile number and email address;

(d)

(e)

The full name and contact information of an individual located within the state who is authorized to accept service on behalf of the creditor;

(f)

The full name and contact information of an in-State representative or agent appointed by the creditor, who shall be responsible for the care, maintenance, security, and upkeep of the exterior of the registered property if it becomes vacant; and

(g)

A statement of whether the registered property is occupied or not, and if so, the name or names of all persons, legal entities or other parties legally occupying the registered property.

(3)

The date the summons and complaint were filed against the registered property, the court in which it was filed, and the docket number of the filing.

(4)

Identify whether the registered property is vacant and abandoned. For the purposes of this § 86B-6E, a property shall be considered vacant and abandoned if it 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:

(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 window panes 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.

Registration fee.

(1)

All registration fees must accompany the registration form and be paid directly by the creditor. Third-party payment of registration fees are not allowed without the consent of the City Building and Housing Department. The registration fees paid hereunder shall be for the purposes of covering the cost of registering the properties through the City registration program, as well as costs incurred for periodic inspections and administrative costs associated with ensuring compliance with the property maintenance and security requirements mandated under this Chapter 86B. All properties required to be registered pursuant to this § 86B-6 shall pay the following registration fees:

(a)

If the registered property is occupied, a $500 nonrefundable registration fee per registered property is payable at the time of the initial registration and at each annual registration thereafter.

(b)

If the registered property is vacant and abandoned at the time of the initial registration or at the time of the annual registration, the registration fee for the initial registration or annual registration, as applicable shall be a $2,500 nonrefundable registration fee per registered property, payable at the time of the initial registration and/or at each annual registration thereafter, as applicable.

(2)

Property registration fees imposed pursuant to this subsection 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 City directly.

Amended registration. If at any time the information contained in the initial registration form and/or annual registration form is no longer valid or has changed, the creditor shall file an amended registration form containing the corrected information within 10 days of said change. Any person or legal entity who acquires title to a registered property that continues to meet the requirements for registration under this Chapter 86B shall file an amended registration form containing the updated information within 10 days of the transfer of title. All amended registration forms filed pursuant to this Subsection G shall pay the following modified registration fees at the time of filing the amended registration forms:

(1)

No registration fee shall be required for a registration form filed for the sole purpose of amending an existing registration with updated information.

(2)

If, at the time after the amended registration form, the registered property is vacant and abandoned, and had not been vacant and abandoned at the time of filing the prior registration, and a nonrefundable fee of $2,000 per registered property shall accompany the amended registration.

Administration of registration program. The City may, subject to the Local Public Contracts Law, P.L. 1971, 19 c. 198 (N.J.S.A. 40A:11-1 et seq.), contract with and set the compensation of a private entity to assist the City in the implementation and administration of the registration program set forth in this § 86B-6. The City may delegate to such private entity any duties under the property registration program, including, without limitation, identifying properties located within the City that are subject to the registration requirements of the property registration program, maintaining and updating the property registrations for the City, communicating with the creditors or the in-state representative or agent appointed by creditors located out of state of such properties, invoicing and collecting any fees from the creditors for such properties, and monitoring compliance with the requirements set forth in this Article II.

§ 86B-7 Maintenance requirements of creditors.

A creditor filing a summons and complaint in an action to foreclose 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 a registered property.

A creditor shall maintain the registered property so that it meet the following maintenance requirements:

(1)

Registered property shall be kept free of high grass, weeds, overgrown brush, dead vegetation, dead or dying trees, stumps, roots, obnoxious growths, filth, trash, junk, debris, building materials, any accumulation of newspapers, circulars, flyers, notices, except those required by federal, state or local law, discarded personal items, including, but not limited to, furniture, clothing, large and small appliances, printed material or any other items that give the appearance that the property is vacant or abandoned, and shall otherwise comply with § 25-1 and § 25-2.

(2)

Registered property shall be maintained free of graffiti by removal or painting over with an exterior grade paint that matches the color of the exterior structure within 14 business days after notice to the registrant by the Chief of Police (or his designee) to remove the same, in accordance with the applicable provisions of the City Code, more specifically § 51A-8.

(3)

Front, side, and rear yards, including landscaping, of registered property shall be maintained in accordance with § 66-17 of the City Code, and the property maintenance standards adopted pursuant to Chapter 66 of the City Code. Maintenance shall include, but not be limited to, cutting and mowing of lawns and all ground cover or landscape and removal and disposal of all trimmings.

(4)

Pools and spas shall be maintained so the water remains free and clear of pollutants and debris and shall comply with the regulations set forth in Chapter 102 of the City Code and Article V, Note 13, of the Gloucester City Development Ordinance and any other Applicable Code. Pools and spas shall also be secured so as to restrict unauthorized access to them. All fences required pursuant to Article V, Note 13, of the Gloucester City Development Ordinance shall be maintained in accordance with the standards set forth herein.

(5)

Fences shall be maintained in state of good repair, safe and secure condition, with all braces, bolts, nails, supporting frame, fastenings and other components free from deterioration, termite infestation, rot, rust damage or loosening, and able to withstand at all times the wind pressure for which they were designed. Fences shall be maintained in sound structural condition as a whole, including post(s), and shall not lean more than 15° out of vertical alignment.

(6)

Snow and ice removal shall be performed in accordance with § 73-15 of the City Code.

(7)

Registered property shall be maintained in accordance with the International Property Maintenance Code adopted by the City pursuant to § 66-4.

(8)

Registered property shall comply with all other applicable codes.

A creditor shall post a sign affixed to the outside of the registered 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.

A creditor shall acquire and maintain liability insurance by procuring a vacant policy covering any damage to any person or any property caused by any physical condition of the registered property at all times while the property is a registered property. The amount of the insurance required to be obtained shall equal to or greater than the amounts set forth in N.J.S.A. 40A:10A-1 and the creditor shall file a copy of the certificate of insurance evidencing this insurance simultaneously with the filing of the initial registration and each annual registration.

§ 86B-8 Security requirements of creditors.

Creditors shall ensure the security of the registered property in accordance with the following requirements:

The registered property shall be maintained in a secure manner so as not to be accessible to unauthorized persons. A "secure manner" shall include, but not be limited to, the closure and locking of windows, doors, gates and other openings of such size that may allow a child to access the interior of the property or structure. "Locking" includes measures that require a key, keycard, tool or special knowledge to open or gain access.

There shall be no unsecured openings in the walls of any registered property. Broken windows, doors, gates and other openings of such size that may allow a child to access the interior of a building or structure shall be repaired. Broken windows shall be secured by reglazing of the window. All doors shall be without openings, or such openings shall be securely covered to prevent unauthorized access.

Particle board shall not be used as a means of securing any registered property.

Immediate action shall be taken to secure any registered property that becomes an accessible property/structure.

Additional security measures must be taken immediately if signs of vandalism or unauthorized entry begin to appear. Such additional security measures must be reasonably designed to provide adequate and long-term protection against future vandalism and/or unauthorized access, and shall include, at minimum, weekly inspections or monitoring to alert the registrant and the City of future vandalism and/or unauthorized access.