The public officer is hereby directed to identify abandoned
properties within the City, 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 City Council and
the Mayor 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 City 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 City of Corbin City.
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 City of Corbin City,
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 Atlantic 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 City of Corbin
City as "plaintiff" and the name of the property owner as "defendant,"
as though an action had been commenced by the City 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 § 34-8A by instituting, in accordance with the New Jersey Court Rules, a summary trial proceeding in the Superior Court, Law Division, Atlantic 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 City
of Corbin City 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 City 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 City of Corbin City 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 City 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 City to guarantee the rehabilitation
or repair of the property. The public officer may waive a requirement
to post a bond imposed by the City 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 City of Corbin City,
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 City of Corbin City
harmless, has been filed with the City Clerk.
C.
Remediation by City.
(1)
If the City of Corbin City 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 City
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 City 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 City of
Corbin City 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 City of Corbin City, 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 City, except for City 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 Atlantic 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 City 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 City, 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 City of Corbin City 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 City of Corbin City
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 City of Corbin City has purchased or
taken assignment from the City 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 City 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 City of Corbin
City may be brought by the City in the Superior Court, Atlantic 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 City to take possession and control of the property and to develop
a rehabilitation plan.
B.
Where the City has been granted possession and control, the City
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 City, 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
City may apply to the court to have the posted bond forfeited, to
transfer possession of the building to the City 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 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 City possession
of the property, and authorize the City 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 City 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 City 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 City 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 City or qualified rehabilitation entity is qualified to undertake
the rehabilitation and reuse of the property; and
(3)
The plan submitted by the City or qualified rehabilitation entity
represents a realistic and timely plan for the rehabilitation and
reuse of the property.
C.
The City 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 finds 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 City 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 City's rights, where that designation
will further the rehabilitation and reuse of the property consistent
with City plans and objectives. This designation shall be made by
resolution of the City Council of the City of Corbin City.
B.
Regardless of whether the City 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 City shall maintain, safeguard, and maintain insurance on the
property. Notwithstanding the City'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 City has been granted possession of the property pursuant
to N.J.S.A. 55:19-89, the City 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 subsection shall be considered legal control
of the property.
C.
Notwithstanding the granting of possession to the City, 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 City 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 City 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 City sought to obtain the necessary financing from the senior
lienholder, which declined to provide such financing on reasonable
terms;
(2)
The City 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 Atlantic County.
F.
Where the City has been granted possession by the court in the name
of the City, the City 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 City has designated a qualified rehabilitation entity to
act on its behalf, the qualified rehabilitation entity shall provide
bimonthly reports to the City on its activities and progress toward
rehabilitation and reuse of the property. The City 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
City 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 City designate another qualified rehabilitation
entity to exercise its rights or, if the City fails to do so, may
terminate the order of possession and return possession and control
of the property to its owner.
H.
The City 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 City 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 as 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 City 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 City 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 City or affect any of the terms or conditions
under which the City 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 City 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 City liens outstanding
on the property; all costs incurred by the City in bringing action
with respect to the property; any costs incurred by the City 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 City to
make any repair on the property in the event of a code violation which
is not corrected in timely fashion by 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 City 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 City title or authorize the City to sell the
property, subject to the provisions of N.J.S.A. 55:19-96.
A.
The City, with the approval of the court, may place a lien on the
property to cover any costs of the City 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 City
lien for the purposes of N.J.S.A. 54:5-9, with the rights and status
of a City lien pursuant thereto.
B.
Where the City 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 City 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 City 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 City 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 City and granted priority lien status pursuant to
Subsection a of N.J.S.A. 55:19-98;
(4)
A reasonable development fee to the City 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
City 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 City Council, with the approval of the court, may place a lien
on the property to cover any costs of the City 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 City lien for the purposes
of N.J.S.A. 54:5-9, with the rights and status of a City 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 City with respect to any abandoned
property, whether or not the City has established an abandoned property
list and whether or not the property at issue has been included on
any such list.
A.
The City 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 City 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 City 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 City 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 City 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 City, 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 City 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 City 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 City, and any amount paid by the
purchaser to the City at the special tax sale shall be forfeit to
the City.
F.
In the event there are two or more qualified bidders for any property
or bid package in a special tax sale, the City 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 City pursuant to this section and his/her/its interest in the
property or properties reverts to the City, the City 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 City 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 City pursuant to this section. Nothing shall prohibit the City
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 City has purchased
or taken assignment from the City 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 City 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 City, any owner or operator of a business
within the City 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.
