The Township Construction Official, Property Maintenance Officer
and/or Director of Rehabilitation (collectively hereinafter referred
to as the "public officer") is hereby directed to identify abandoned
properties within the Township, place said properties on an abandoned
property list, and provide such notices and carry out such other tasks
as are required to effectuate an abandoned property list as provided
by law.
The public officer shall provide a report to Township Committee
and the Township Business Administrator every six months with respect
to the number and location of properties on the abandoned property
list, the status of those properties, and any actions taken by the
Township or by any qualified rehabilitation entity, designated pursuant
to the authority granted the public officer, with respect to any property
on the list or any other abandoned property within the Township of
Hanover.
The public officer 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 Hanover,
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 street
address. The public officer, in consultation with the Tax Collector,
shall also send out a notice by regular mail to any owner, 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 public officer 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 public
officer in the office of the Morris 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 Hanover
as "plaintiff" and the name of the property owner as "defendant,"
as though an action had been commenced by the Township against the
owner.
A.
An owner or lienholder may challenge the inclusion of his property
on the abandoned property list by appealing that determination to
the public officer 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 public officer
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 public officer
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 public officer 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 public officer 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.
B.
The property owner may challenge an adverse determination of an appeal with the public officer pursuant to § 260-12A by instituting, in accordance with the New Jersey Court Rules, a summary trial proceeding in the Superior Court, Law Division, Morris County, which action shall be tried de novo. Such action shall be instituted within 20 days of the date of the notice of decision mailed by the public officer. The sole ground for appeal 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.
C.
The public officer shall promptly remove any property from the abandoned
property list that has been determined not to be abandoned on appeal.
D.
The abandoned property list shall become effective, and the Township
of Hanover shall have the right to pursue any legal remedy with respect
to properties on the abandoned property list, at such time as any
after one property has been placed on the list in accordance with
the provisions of this section, upon the expiration period for appeal
with respect to the property or upon denial of an appeal brought by
the property 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 Hanover 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 public officer 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 public officer 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 monies 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 Hanover,
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 Hanover
harmless, has been filed with the Township Clerk on a form approved
by the Township Attorney.
C.
Remediation by Township.
(1)
If the Township of Hanover 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 Hanover in order to ensure performance. The amount and conditions
of the bond shall be determined by the public officer.
(2)
The cost of remediation incurred by the Township of Hanover, 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 Morris County Clerk.
D.
Intent to maintain abandoned property.
(1)
Failure of an owner or lienholder to remove the property from the
abandoned property list within the period of time for appeal of inclusion
of the property on the list pursuant to N.J.S.A. 55:19-55 shall be
prima facie evidence of the intent of the owner to continue to maintain
the property as abandoned property.
A.
An owner may request removal of his/her/its 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 a certified check, money order, 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 a certified check, money order, 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 public officer, stating that the certified
check, money order, or bond adequately covers the cost of the cleanup;
or
(2)
By demonstrating to the satisfaction of the public officer that the
conditions rendering the property abandoned have been remediated in
full; provided, however, that where the public officer finds that
the owner is actively engaged in remediating the conditions because
of which the property was determined to be abandoned pursuant N.J.S.A.
55:19-55, as evidenced by significant rehabilitation activity on the
property, the public officer 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 a certified check, money order, or 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.
When a person or entity other than the Township of Hanover 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.
Notwithstanding N.J.S.A. 54:5-104.34, when the Township of Hanover
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 a certified check, money order, 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 pursuant to N.J.S.A. 55:19-55
have been remedied in full.
Once a final judgment barring the right of redemption with respect
to a property on the list of abandoned properties has been recorded,
no court shall reopen such judgment at any time except on the grounds
of lack of jurisdiction or fraud in the conduct of the action; in
any such proceeding, the provisions of N.J.S.A. 55:19-20 et seq. shall
be construed liberally in favor of the purchaser, assignee or transferee
of the tax sale certificate.
A.
If an entity other than the Township of Hanover 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 pursuant
to N.J.S.A. 55:19-55 if:
(1)
The owner of the certificate has 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 property used on a seasonal basis shall be deemed abandoned only
if it meets any two of the additional criteria set forth in N.J.S.A.
55:19-81.
C.
A determination that a property is abandoned property under the provisions
of this article 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.
D.
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 public officer 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
Hanover may be brought by the Township in the Superior Court, Morris
County. If the court shall find that the property is abandoned pursuant
to N.J.S.A. 55:19-81 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 a rehabilitation plan.
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
prima facie evidence that the owner has failed to take any action
to further the rehabilitation of the property.
A.
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 public officer
or the court to be the projected cost of rehabilitation.
B.
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.
C.
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.
D.
The court shall approve any plan that, in the judgment of the court,
is realistic and likely to result in the expeditious rehabilitation
and reuse of the property which is the subject of the complaint.
(1)
If the court approves the owner's plan, then it may appoint
the public officer 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.
(2)
The owner shall provide bimonthly reports to the public officer on
its activities and progress toward rehabilitation and reuse of the
property.
E.
The court may reject a plan and bond if it finds that the plan does
not represent a realistic and expeditious means of ensuring the rehabilitation
of the property or that the owner or his representative or agents,
or both, lack the qualifications, background or other criteria necessary
to ensure that the plan will be carried out successfully.
A.
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. Their 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's or lienholder's plan, it shall designate that party
to be in possession of the property for purposes of ensuring its rehabilitation
and reuse and may appoint the public officer to act as monitor of
the party's compliance.
B.
The mortgage holder or lienholder, as the case may be, shall provide
bimonthly reports to the court and the public officer on its activities
and progress toward rehabilitation and reuse of the property.
C.
If the mortgage holder or lienholder fails to carry out any material
step in the approved plan, then the public officer 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.
D.
Any sums incurred or advanced for the purpose of rehabilitating the property by a mortgage holder or lienholder granted possession of a property pursuant to Subsection A of this section, including court costs and reasonable attorneys' fees, may be added to the unpaid balance due 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.
A.
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.
B.
The court shall grant the Township or qualified rehabilitation entity
possession of the property if it finds that:
(1)
The proposed rehabilitation and reuse of the property is appropriate
and beneficial;
(2)
The Township or qualified rehabilitation entity is qualified to undertake
the rehabilitation and reuse of the property; and
(3)
The plan submitted by the Township or qualified rehabilitation entity
represents a realistic and timely plan for the rehabilitation and
reuse of the property.
C.
The Township or qualified rehabilitation entity shall take all steps
necessary and appropriate to further the rehabilitation and reuse
of the property consistent with the plan submitted to the court. In
making its findings pursuant to this subsection, the court may consult
with qualified parties, including the New Jersey Department of Community
Affairs, and, upon request by a party in interest, may hold a hearing
on the plan.
D.
Where either a redevelopment plan pursuant to N.J.S.A. 40A:12-1 et
seq. or a neighborhood revitalization plan pursuant to N.J.S.A. 52:27D-490
et seq. has been adopted or approved by the New Jersey Department
of Community Affairs, as appropriate, encompassing the property which
is subject of a complaint, the court shall make a further finding
that the proposed rehabilitation and reuse of the property are not
inconsistent with any provision of either plan.
A.
The Township may exercise its rights under N.J.S.A. 55:19-78 et seq.
directly or 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. This designation shall be made
by resolution of the Township Committee of the Township of Hanover.
B.
Regardless of whether the Township exercises its rights directly
or designates a qualified rehabilitation entity pursuant to this section,
while in possession of a property pursuant to N.J.S.A. 55:19-78 et
seq., the Township shall maintain, safeguard, and maintain insurance
on the property. Notwithstanding the Township's possession of
the property, nothing in N.J.S.A. 55:19-78 et seq. shall be deemed
to relieve the owner of the property of any civil or criminal liability
or any duty imposed by reason of acts or omissions of the owner.
A.
If the Township has been granted possession of the property pursuant
to N.J.S.A. 55:19-89, the Township shall be deemed to have an ownership
interest in the property for the purpose of filing plans with public
agencies and boards, seeking and obtaining construction permits and
other approvals, and submitting applications for financing or other
assistance to public or private entities.
B.
For purposes of any state program of grants or loans, including but
not limited to programs of the New Jersey Department of Community
Affairs and the New Jersey Housing and Mortgage Finance Agency, possession
of a property under this section shall be considered legal control
of the property.
C.
Notwithstanding the granting of possession to the Township, nothing
in N.J.S.A. 55:19-78 et seq. shall be deemed to relieve the owner
of the property of any obligation the owner or any other person may
have for the payment of taxes or other Township liens and charges,
or mortgages or liens to any party, whether those taxes, charges or
liens are incurred before or after the granting of possession.
D.
The granting of possession shall not suspend any obligation the owner
may have as of the date of granting possession for payment of any
operating or maintenance expense associated with the property, whether
or not billed at the time of the granting of possession.
E.
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 Morris County.
F.
Where the Township has been granted possession by the court in the
name of the Township, the Township may seek the approval of the court
to assign its rights to another entity, which approval shall be granted
by the court when it finds that:
G.
Where the Township has designated a qualified rehabilitation entity
to act on its behalf, the qualified rehabilitation entity shall provide
bimonthly reports to the Township 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.
H.
The Township 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 public
officer, attesting that the rehabilitation is anticipated to be completed
within that time period, and a statement setting forth the actions
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 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.
Any petition to reinstate the owner's control and possession
of the property filed pursuant to N.J.S.A. 55:19-92 shall:
(1)
Include a plan for completion of the rehabilitation and reuse of
the property consistent with the plan previously approved by the court;
(2)
Provide legally binding assurance that the owner will comply with
all conditions of any grant or loan secured by the Township or repay
those grants or loans in full, at the discretion of the maker of the
loan or grant; and
(3)
Be accompanied by payment equal to the sum of all Township liens
outstanding on the property; all costs incurred by the Township in
bringing action with respect to the property; any costs incurred by
the Township not covered by grants or loans to be assumed or repaid
pursuant to this section; and any costs remaining to complete rehabilitation
or reuse of the property, as determined by the public officer, which
payment shall be placed in escrow with the clerk of the court ending
disposition of the petition.
A.
Prior to the granting of a petition on the part of the owner by the
court pursuant to N.J.S.A. 55:19-92; the owner may be required to
post a bond or other security in an amount determined by the court,
after consultation with the public officer, as likely to ensure that
the owner will continue to maintain the property in sound condition.
That bond or other security shall be made available to the Township
to make any repair on the property in the event of a code violation
which is not corrected in a timely fashion by the owner. The bond
or other security may be forfeited in full in the event that the owner
fails to comply with any requirement imposed as a condition of the
reinstatement petition filed pursuant to N.J.S.A. 55:19-92.
B.
The owner may seek approval of the court to be relieved of this requirement
after five years, which shall be granted if the court finds that the
owner has maintained the property in good repair during that period,
that no material violations affecting the health and safety of the
tenants have occurred during that period, and that the owner has remedied
other violations in a timely and expeditious fashion.
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 Township, 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 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.
The Township may seek approval of the court to sell the property
to a third party when the court finds that such conveyance will further
the effective and timely rehabilitation and reuse of the property.
E.
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.
A.
The proceeds paid pursuant to Subsection c of N.J.S.A. 55:19-96 shall
be distributed in the following order of priority:
(1)
The costs and expense of sale;
(2)
Other governmental liens;
(3)
Repayment of principal and interest on any borrowing or indebtedness
incurred by the Township and granted priority lien status pursuant
to Subsection a of N.J.S.A. 55:19-98;
(4)
A reasonable development fee to the Township consistent with the
standards for development fees established for rehabilitation by the
New Jersey Department of Community Affairs or the New Jersey Housing
and Mortgage Finance Agency;
(5)
Other valid liens and security interest, in accordance with their
priority; and
(6)
The owner.
A.
With respect to any lien placed against real property pursuant to
the provisions of N.J.S.A. 40:48-2.3, 40:48-2.5, or 40:48-2.3a, or
any receiver's lien pursuant to N.J.S.A. 2A:42-114 et seq., the
Township shall have recourse with respect to the lien against any
assets of the owner of the property if an individual, against any
assets of any partner if a partnership, and against any asset of any
owner of a 10% interest or greater if the owner is any other business
organization or entity recognized pursuant to law.
B.
The public officer, with the approval of the court, may place a lien
on the property to cover any costs of the Township in connection with
a proceeding under N.J.S.A. 55:19-78 et seq., incurred prior to the
grant by the court of an order of possession under N.J.S.A. 55:19-78
et seq., 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.
C.
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.
The Township 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 Township 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;
(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 Township may determine are 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 Township may establish minimum bid requirements for a special
tax sale that are less than the full amount of the taxes, interest
and penalties due, the amount of such minimum bid to be at the sole
discretion of the Township, in order to ensure that the properties
to be sold will be rehabilitated or otherwise reused in a manner consistent
with the public interest.
D.
The Township 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 Township 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 to the Township at the special tax sale shall be forfeited
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.
G.
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.
H.
The Township 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 property on which an entity other than the Township 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.
A.
Any interested party may submit a written request to the public officer
asserting that any property within the Township should be included
on the abandoned property list prepared pursuant to N.J.S.A. 55:19-55,
specifying 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 public officer 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, any owner or operator of a business
within the Township 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 public officer shall
provide that party with at least 20 days' notice of any such
hearing. The party shall provide the public officer 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.
