Bill Text: NJ A2599 | 2014-2015 | Regular Session | Introduced
Bill Title: Requires registration of certain vacant and abandoned properties with municipalities and permits municipalities to require protective measures be taken for such properties.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-02-20 - Introduced, Referred to Assembly Housing and Community Development Committee [A2599 Detail]
Download: New_Jersey-2014-A2599-Introduced.html
Sponsored by:
Assemblyman TROY SINGLETON
District 7 (Burlington)
SYNOPSIS
Requires registration of certain vacant and abandoned properties with municipalities and permits municipalities to require protective measures be taken for such properties.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning vacant and abandoned property, supplementing Title 40 of the Revised Statutes, and amending P.L.2008, c.127.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. (New section) Unless notice has been provided to the municipal clerk pursuant to section 17 of P.L.2008, c.127 (C.46:10B-51), a responsible party shall file a certificate of registration for a vacant and abandoned property with the clerk of the municipality in which the property is located within 90 days after receipt of notice, pursuant to subsection c. of this section, that the property has been determined to be vacant and abandoned, or within 30 days after the responsible party assumes ownership of or responsibility for a property already determined to be vacant and abandoned, whichever is later. The certificate of registration shall be filed on forms prescribed by the Commissioner of Community Affairs and shall contain:
(1) the name, street address, and telephone number of a natural person who resides or maintains an office within the State and who is either the responsible party or an authorized agent designated by the responsible party to receive notices and complaints of property maintenance and code violations on behalf of the responsible party;
(2) the name, street address, and telephone number of the person responsible for maintaining the property, if different; and
(3) evidence of any liability insurance required by an ordinance adopted pursuant to paragraph (3) of subsection d. of this section.
A responsible party for a vacant and abandoned property shall file an amended certificate of registration within 30 days after any change in the information required to be included thereon.
b. A certificate of registration shall remain valid for one year and shall be renewed on an annual basis if the property remains vacant and abandoned. A municipality may by ordinance establish a fee of not more than $250 for a certificate of registration for a vacant and abandoned property. A renewal fee of not more than $500 may be established for a renewal if there is an outstanding property maintenance or code violation on a vacant and abandoned property that remains unabated at the time of renewal. A renewal fee of not more than $750 may be established for a subsequent renewal if there continues to be an outstanding property maintenance or code violation or there is a new such violation on a vacant and abandoned property that remains unabated at the time of renewal.
c. Upon the determination of the public officer that a property is vacant and abandoned, the clerk or other designated official of the municipality shall notify the responsible party of the determination and of the responsibility to register pursuant to subsection a. of this section. The notice shall include the conditions set forth in the definition of "vacant and abandoned property" in subsection f. of this section, determined to apply. If the municipality has adopted an ordinance pursuant to subsection d. of this section and the public officer determines that one or more protective measures under that subsection are warranted, the notice shall include the specific protective measure or measures required of the responsible party.
d. A municipality may by ordinance authorize the public officer to require the responsible party for a vacant and abandoned property to undertake, no sooner than 45 days after receipt of notice pursuant to subsection c. of this section that a property has been determined to be vacant and abandoned and until the property is reoccupied, one or more of the following protective measures:
(1) Enclose and secure the property against unauthorized entry;
(2) Post a sign affixed to the inside of the property and visible to the public indicating the name, address, and telephone number of the responsible party, any authorized agent designated by the responsible party for the purpose of receiving service of process, and the person responsible for maintaining the property if different from the responsible party or authorized agent; or
(3) Acquire and otherwise maintain liability insurance by procuring a vacancy policy, covering any damage to any person or any property caused by any physical condition of the property.
e. A responsible party that violates any provision of this section or any ordinance adopted pursuant hereto, shall be liable to a penalty of not less than $500 and not more than $1,000. Each day that a violation continues shall constitute an additional, separate, and distinct offense. Any penalty imposed pursuant to this section shall be recoverable by a summary proceeding under the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). The Superior Court, Law Division, in the county, or the municipal court of the municipality, in which the property is located shall have jurisdiction to enforce such penalty.
f. For the purposes of this section:
"Public officer" means the person designated by the municipality pursuant to section 3 of P.L.1942, c.112 (C.40:48-2.5) or any officer of the municipality qualified to carry out the responsibilities set forth in P.L.2003, c.210 (C.55:19-78 et al.) and designated by resolution of the governing body of the municipality, except that in municipalities organized under the "mayor-council plan" of the "Optional Municipal Charter Law," P.L.1950, c.210 (C.40:69A-1 et seq.), the public officer shall be designated by the mayor.
"Responsible party" means the title owner of a vacant and abandoned property or a creditor responsible for the maintenance of a property pursuant to section 17 of P.L.2008, c.127 (C.46:10B-51).
"Street address" means an address at which a natural person who is the responsible party or an authorized agent actually resides or actively uses for business purposes, and shall include a street name or rural delivery route.
"Vacant and abandoned property" means any residential or commercial real estate which is not legally occupied by a title owner or tenant, which is in such condition that it cannot be legally reoccupied, and at which at least two of the following conditions exist:
(1) Overgrown or neglected vegetation;
(2) The accumulation of newspapers, circulars, flyers, or mail on the property;
(3) Disconnected gas, electric, or water utility services to the property;
(4) The accumulation of hazardous, noxious, or unhealthy substances or materials on the property;
(5) The accumulation of junk, litter, trash, or debris on the property;
(6) The absence of window treatments such as blinds, curtains, or shutters;
(7) The absence of furnishings and personal items;
(8) Statements of neighbors, delivery persons, or government employees indicating that the property is vacant and abandoned;
(9) Windows or entrances to the property that are boarded up or closed off, or multiple window panes that are damaged, broken, and unrepaired;
(10) Doors to the property that are smashed through, broken off, unhinged, or continuously unlocked;
(11) A risk to the health, safety, or welfare of the public or any adjoining or adjacent property owners due to acts of vandalism, loitering, criminal conduct, or the physical destruction or deterioration of the property;
(12) An uncorrected violation of a municipal building, housing, or similar code during the preceding year, or an order by municipal authorities declaring the property to be unfit for occupancy and to remain vacant and unoccupied;
(13) The mortgagee or other authorized party has secured or winterized the property due to the property being deemed vacant and unprotected or in danger of freezing;
(14) A written statement issued by a mortgagor expressing the clear intent of all mortgagors to abandon the property; or
(15) Any other reasonable indicia of abandonment.
2. Section 17 of P.L.2008, c.127 (C.46:10B-51) is amended to read as follows:
17. a. (1) A creditor serving a summons and complaint in an action to foreclose on a mortgage on residential property in this State shall, within 10 days of serving the summons and complaint, notify the municipal clerk of the municipality in which the property is located that a summons and complaint in an action to foreclose on a mortgage has been filed against the subject property. The notice shall contain the name and contact information for the representative of the creditor who is responsible for receiving complaints of property maintenance and code violations, may contain information about more than one property, and shall be provided by mail or electronic communication, at the discretion of the municipal clerk. If the municipality has appointed a public officer pursuant to P.L.1942, c.112 (C.40:48-2.3 et seq.), the municipal clerk shall forward a copy of the notice to the public officer or shall otherwise provide it to any other local official responsible for administration of any property maintenance or public nuisance code.
In the event that the property being foreclosed on is an affordable unit pursuant to the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.), then the creditor shall identify that the property is subject to the "Fair Housing Act."
The notice shall also include the street address, lot and block number of the property, and the full name and contact information of an individual located within the State who is authorized to accept service on behalf of the creditor. The notice shall be provided to the municipal clerk within 10 days of service of a summons and complaint in an action to foreclose on a mortgage against the subject property.
A creditor that files a notice required under this paragraph on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be responsible for any fees established pursuant to subsection b. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
(2) Within 30 days following the effective date of P.L.2009, c.296 (C.2A:50-69 et al.), any creditor that has initiated a foreclosure proceeding on any residential property which is pending in Superior Court shall provide to the municipal clerk of the municipality in which the property is located, a listing of all residential properties in the municipality for which the creditor has foreclosure actions pending by street address and lot and block number. If the municipality has appointed a public officer pursuant to P.L.1942, c.112 (C.40:48-2.3 et seq.), the municipal clerk shall forward a copy of the notice to the public officer, or shall otherwise provide it to any other local official responsible for administration of any property maintenance or public nuisance code.
b. If the owner of a residential property vacates or abandons any property on which a foreclosure proceeding has been initiated or if a residential 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 property is found to be a nuisance or in violation of any applicable State or local code, the local public officer, municipal clerk, or other authorized municipal official shall notify the creditor, which shall have the responsibility to abate the nuisance or correct the violation in the same manner and to the same extent as the title owner of the property, to such standard or specification as may be required by State law or municipal ordinance. A creditor shall be permitted to include the expense of abatement or correction in any foreclosure or other action against the title owner.
The title owner shall maintain a vacant residential property purchased or acquired by that owner at a foreclosure sale or by deed in lieu of foreclosure.
c. If the municipality expends public funds in order to abate a nuisance or correct a violation on a residential property in situations in which the creditor was given notice pursuant to the provisions of subsection b. of this section but failed to abate the nuisance or correct the violation as directed, the municipality shall have the same recourse against the creditor as it would have against the title owner of the property, including but not limited to the recourse provided under section 23 of P.L.2003, c.210 (C.55:19-100).
(cf: P.L.2009, c.296, s.5)
3. This act shall take effect on the first day of the third month next following the date of enactment, but the Commissioner of Community Affairs may take such anticipatory administrative action in advance thereof as shall be necessary for the implementation of this act.
STATEMENT
This bill would require the responsible party for a vacant and abandoned property to register the property with the municipality in which the property is located and would permit municipalities to require responsible parties to undertake protective measures regarding such properties. Vacant and abandoned properties negatively impact public safety and neighboring property values, detrimentally affecting communities throughout the State. This bill would help municipalities be able to hold those responsible for maintaining these properties to account.
The bill would establish a new registration requirement for all vacant and abandoned residential and commercial properties. A property would be considered vacant and abandoned if the property is not legally occupied by a title owner or tenant for residential or business purposes, the property cannot be legally reoccupied, and the property meets at least two conditions which indicate abandonment. The title owner or mortgage lender responsible for maintaining a property pursuant to section 17 of P.L.2008, c.127 (C.46:10B-51) would generally be required to register such property within 90 days of receipt of notice from the municipality that the property has been deemed vacant and abandoned. A responsible party would not be required to register a vacant or abandoned property if the owner has already provided notice of a property's vacancy or abandonment to the municipal clerk of the municipality in which the vacant or abandoned property is located under section 17 of P.L.2008, c.127 (C.46:10B-51).
The bill would authorize municipalities to establish a fee of not more than $250 to register a vacant and abandoned property. The bill authorizes a renewal fee of not more than $500 if an outstanding property maintenance or code violation remains unabated at the time of renewal, and a renewal fee of not more than $750 if there continues to be such a violation, or there is a new violation that remains unabated at the time of a subsequent renewal. If there is no such violation on a vacant and abandoned property, the renewal fee may be no greater than $250. A creditor that files a notice required under section 17 of P.L.2008, c.127 (C.46:10B-51), and thus does not have to file a certificate of registration under this bill, would still be responsible for paying these fees, including renewal fees, if such fees have been established by a municipal ordinance.
A municipality would also be authorized to require responsible parties for vacant and abandoned properties to undertake certain protective measures regarding such properties. Specifically, a municipality would be able to require a responsible party to enclose and secure the property against unauthorized entry, post a sign on the property with pertinent contact information, and maintain liability insurance.
The bill would also establish penalties for violations of any of its provisions or any ordinance adopted pursuant thereto. Specifically, a responsible party may be liable to a penalty of not less than $500 and not more than $1,000 for a violation. Each day that a violation continues would constitute an additional, separate, and distinct offense. Any penalty imposed under the bill would be recoverable by a summary proceeding under the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). The Superior Court, Law Division in the county, or the municipal court of the municipality, in which the property is located would have jurisdiction to enforce the penalty.
A creditor, which has under existing law the same responsibility as the title owner to abate or correct a nuisance or code violation concerning a vacant and abandoned residential property, would be permitted to include the expense of such abatement or correction in any foreclosure or other action against the title owner. The title owner of a residential property purchased or acquired by that owner at a foreclosure sale or by deed in lieu of foreclosure would be required to maintain the property if it is vacant.
