A.
Establishment and purpose of registration program and registry. The
Township of Hanover hereby establishes a property registration program
and registry of the Township of Hanover pursuant to its authority
granted by P.L. 2021, c. 444.[1] The purpose of this program is to create and maintain
a registry for all commercial and/or residential properties within
the Township's municipal boundaries for which a summons and complaint
in an action to foreclose has been filed with the Superior Court of
New Jersey. The registry will be formed and maintained to assist the
Township with identifying, monitoring, and 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 in accordance with the Code of the Township
of Hanover.
[1]
Editor's Note: See 40:48-2.12s1 et seq.
B.
Officials duties and responsibilities:
(1)
The Business Administrator and Township Clerk shall serve as the municipal officials responsible for administering and coordinating the Township property registration program in conjunction with the enforcement officers of the Township. The Business Administrator and Township Clerk shall be responsible for: maintaining the registry in conjunction with the advice and recommendations of the enforcement officer; accepting registrations and notices from creditors and/or responsible parties; collecting registration fees; processing registration payments; and assisting in the enforcement of delinquent registration fees required to be submitted to the Township under § 260-4 below.
(2)
The Township Construction Official, Director of Rehabilitation, and
Property Maintenance Officer shall be responsible for notifying creditors
of any violations or issues related to care, maintenance, security
and upkeep of the exterior of vacant and abandoned residential and
commercial properties; determining eligibility for designation as
vacant and abandoned property under this article, and for the enforcement
of the provisions of this article, including issuing violations, and
imposing and collecting fines and penalties for the failure of creditors
to register.
(3)
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.
C.
The Township may, at its discretion, create, maintain and administer
this registry independently, retain the professional services of a
private 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.
D.
Any third parties retained to create, maintain, and/or administer
the registry shall have the authority, on behalf of the Township,
to:
(1)
Identify properties subject to the registration requirement;
(2)
Maintain and update the registration list;
(3)
Communicate with creditors and/or in-state representatives;
(4)
Invoice and collect payment of fees;
(5)
Monitor compliance; and
(6)
Such other functions, within the scope of P.L. 2021, c. 444, which
may be deemed necessary to carry out its function on behalf of the
Township.
E.
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
Morris County, and/or county improvement authority, as applicable,
not less than once per year, or as otherwise directed by the Township's
public officer. 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 article, any creditor or other responsible party 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 of Hanover: i) prior to the effective date of this article, and ii) which is pending as of the effective date of this article, shall provide notice to the Township of in accordance with Subsection B of this § 260-3.
B.
Notice/certification requirements.
(1)
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 of Hanover, the
creditor and/or responsible party shall notify the Township Clerk,
or his/her designee, of the action by completing a certification of
registration on forms provided by the Township Clerk. Such notice/certification
form shall include the following information:
(a)
The address, block, and lot of the subject property;
(b)
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;
(c)
Whether the property is vacant and abandoned in accordance with the definition of "vacant and abandoned" in § 260-1, Definitions;
(d)
The full name, address, telephone number, and email address
for the representative of the creditor and/or responsible party responsible
for receiving notice of complaints of property maintenance and code
violations;
(e)
The full name, address, telephone number, and email address
of any responsible party and/or other 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;
(f)
Evidence of any liability insurance; and
(g)
If the creditor is out-of-state, the full name, address, and
telephone number of an in-state representative or agent of the creditor
or responsible party 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.
(2)
After initial notice to the Township, creditors and responsible parties
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.
(3)
The notice/certification requirements herein represent a continuing
obligation of the creditor and other responsible parties throughout
the pendency of the foreclosure action, as well as during and after
Sheriff's sale, short sale, resale or other transfer of title
occurs in which the creditor and/or responsible party no longer has
authority over the occupancy, custody and/or control of the property.
Within 10 days of the transfer of title to a third party, the creditor
shall update the Township's property registration program of
the transfer of title and provide all updated information contained
in the original or any subsequent notices.
C.
Creditors and/or other responsible parties 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;
(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 or other responsible party 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 and/or
the creditor's responsible party shall:
(a)
Assume full responsibility for the care, maintenance, upkeep, and security of the exterior of the property, which shall include all obligations and responsibilities applicable to owners and tenants for dangerous and unfit buildings and structures under Chapter 94, Buildings and Structures, and Articles I through III, V, VII, VIII and IX with respect to commercial properties of Chapter 218, Property Maintenance, of the Code of the Township of Hanover, including but not limited to:
[1]
Keeping the property free of weeds, overgrown brush, dead vegetation,
trash, junk, debris, building materials, any accumulation of newspaper
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 abandoned;
[2]
Keeping the property free of graffiti or similar markings by
removal or painting over with an exterior grade paint that matches
the color of the exterior structure;
[3]
Keeping all pools and spas free from stagnant water so the water
structure remains clear of pollutants and debris;
(b)
Secure the property against unauthorized entry, which 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. Broken windows,
doors, gates and other openings of such size that may allow a child
to access the interior of the property or structure must be repaired.
Broken windows shall be secured by reglazing of the window;
(c)
Post a sign on the inside of the property, visible to the public,
no smaller than 18 inches by 24 inches, containing the name, address,
telephone number, and email address of the creditor, responsible party,
or an out-of-state creditor's in-state representative or agent
or responsible party, for the purpose of receiving service of process;
(d)
If different than the person receiving service of process, the
sign posted inside the property must also include the name, address,
telephone number, and email address of the person responsible for
day-to-day supervision and management of the building;
(e)
Post the property with "no trespassing" signs of a nature sufficient
to give notice to any person entering upon the property that it is
against the law to enter the property without permission of the creditor;
(f)
Acquire and maintain a vacancy insurance policy which covers
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;
(g)
Provide proof, within 10 days of receiving a request by the
Township or its designee, that the above conditions have been satisfied;
(h)
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 and/or
responsible party becoming aware that the property is deemed vacant
and abandoned as defined herein.
D.
Upon registering the property in accordance with this article, the
creditor shall be issued a certification of registration from the
Township Clerk and/or Business Administrator.
E.
If at any time the creditor or other responsible party 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, including the provisions of Chapter 94, Buildings and Structures, Chapter 105, Construction Codes, Uniform, Chapter 137, Fire Prevention, and/or Chapter 218, Property Maintenance, of Part II, General Legislation of the Township's Code; and/or the provisions of Part III, Board of Health Legislation, of the Township's Code, the enforcement official and/or his/her designee shall notify the creditor and/or responsible party using the contact information provided in the property registry established by this Article II.
F.
This section shall not be construed to diminish any property maintenance
responsibilities of property owners who are not subject to the provisions
of this section.
A.
For the purposes of this section only, "creditor" means 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, N.J.S.A. 17:11C-51 through
17:11C-89, and any entity acting on behalf of the creditor named in
the debt obligation, including, but not limited to, servicers. 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.
B.
A creditor serving a summons and complaint in an action to foreclose
on a mortgage on commercial property shall, within 10 calendar days
of serving the summons and complaint, notify the Business Administrator
and Township Clerk that a summons and complaint in an action to foreclose
on a mortgage has been filed against the subject property.
C.
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.
D.
The notice may contain information about more than one property,
and shall be provided by mail and electronic mail communication.
E.
The Township Clerk shall forward a copy of the notice to the Construction
Official, Property Maintenance Officer, Chief Municipal Finance Officer,
Tax Assessor and any other local official responsible for the administration
of any zoning and property maintenance ordinances and regulations.
F.
The notice shall also include the street address, lot, and block
number of the property.
G.
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 pursuant
to this section 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.
H.
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 Business Administrator and/or the Township Clerk
and/or their designees shall notify the creditor or the representative
or agent.
I.
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 calendar days from the creditor's
receipt of the notice for the creditor to remedy the violation.
J.
If the creditor fails to remedy the violation within that time period,
the Township may impose penalties allowed for the violation of municipal
ordinances.
K.
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 the provisions of Subsection H of this section 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 N.J.S.A. 55:19-100.
B.
Creditors required to notify the Township 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.
(1)
For all residential and/or commercial properties subject to an existing foreclosure action initiated prior to the effective date of this article and which is pending as of the effective date of this Article II, the initial registration fee of $500 shall become due and payable within 30 days after the effective date of this Article II;
(2)
Thereafter annual registration for each registered residential and/or
commercial property subject to foreclosure proceedings which continue
to remain pending shall become due and payable to the Township on
January 31, annually;
C.
If a property registered with the Township's registration program
as a property in foreclosure is vacant and abandoned at the time of
registration, or becomes vacant and abandoned at any time during the
pendency of the foreclosure proceeding, the creditor shall pay an
additional annual registration fee, per property, due at the time
the determination that the property is vacant and abandoned is made,
of $2,000.
D.
If there is an outstanding property maintenance or code violation
on a vacant and abandoned property that remains unabated at the time
of renewal, the responsible party shall pay an additional fee of $500.
E.
If there is an outstanding property maintenance or code violation
on a vacant and abandoned property that remains unabated at the time
of a subsequent renewal, the responsible party shall pay an additional
fee of $750.
F.
Violations.
(1)
An out-of-state creditor subject to the notice and registration requirements of this Article II, 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.
(2)
A creditor subject to the notice and registration requirements of this Article II, found to be in violation of any part of this chapter [with the exception of a violation pursuant to Subsection F(1)], 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.
G.
Twenty percent of any money collected pursuant to this section shall
be utilized by the Township for code enforcement purposes.
H.
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 Article II, 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 N.J.S.A. 55:19-100 et seq.
