Bill Text: NJ S377 | 2022-2023 | Regular Session | Introduced


Bill Title: Requires municipal accounting of abandoned properties before receiving certain State aid; establishes State database of abandoned properties; requires owners of abandoned properties to document rehabilitation efforts.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-11 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S377 Detail]

Download: New_Jersey-2022-S377-Introduced.html

SENATE, No. 377

STATE OF NEW JERSEY

220th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2022 SESSION

 


 

Sponsored by:

Senator  RONALD L. RICE

District 28 (Essex)

 

 

 

 

SYNOPSIS

     Requires municipal accounting of abandoned properties before receiving certain State aid; establishes State database of abandoned properties; requires owners of abandoned properties to document rehabilitation efforts.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel.

  


An Act concerning abandoned properties, supplementing P.L.2006, c.24 (C.55:19-106 et al.), and amending various parts of the statutory law.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    (New section) As used in sections 2 and 3 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill):

     "Abandoned property" means any property that has not been legally occupied for a period of six months, not including a building occupied on a seasonal basis, and in 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 residence 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, exists 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 any mortgagor expressing the clear intent of all mortgagors to abandon the property;

     (15)    any other reasonable indicia of abandonment.

     "Owner" means any person or entity that owns real property constituting an abandoned property as defined in this section and includes an agent designated to be in charge of managing the property.

 

     2.    (New section)   a.   A municipality shall annually undertake an inventory of all abandoned properties located within the municipality and maintain a registry of those properties.  The registry shall include the following information for each abandoned property:

     (1)   the tax block and lot number;

     (2)   the street address;

     (3)   the owner or owners of the property;

     (4)   the person or entity responsible for rehabilitating the property; and

     (5)   any rehabilitation efforts completed on the property, as reported by the owner or agent of the property pursuant to section 3 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill). 

     b.    A municipality may impose and assess an annual fee on the owner of each abandoned property located within the municipality in order to defray the costs associated with undertaking the inventory and maintaining the registry required under this section.  Unpaid fees shall constitute a lien on the property and shall be collected in the same manner as property taxes.  

     c.     A municipality shall annually submit to the Division of Local Government Services in the Department of Community Affairs an abandoned property registry.  The Division of Local Government Services shall make available on its Internet website a Statewide database of all abandoned properties using the registry submissions of each municipality.  The database shall be searchable by municipality and by the type of entity owning each item of abandoned property, including financial institutions, municipalities, private residents, and other public or private entities. 

     d.    A municipality shall not receive Energy Tax Receipts Property Tax Relief Aid, Consolidated Municipal Property Tax Relief Aid, Transitional Aid to Localities, or any successor discretionary aid programs for municipalities in fiscal distress, during any fiscal year in which the municipality fails to comply with the provisions of this section.

 

     3.    (New section)      a.     A municipality shall require, on a quarterly basis, the owner of each property identified on the abandoned property registry to document any rehabilitation efforts completed on the property during the prior 12 month period.  The municipality shall notify the owner of each abandoned property of the requirement to document the rehabilitation efforts.  The notice shall be provided on a quarterly basis, as determined by the Commissioner of Community Affairs.  The notice shall clearly indicate:

     (1)   the street address of the abandoned property;

     (2)   the owner or owners of the abandoned property;

     (3)   the date of delivery of the notice;

     (4)   the requirement of the owner to respond to the notice;

     (5)   the manner in which the owner shall respond to the notice, including, but not limited to, the municipal officer to whom the response shall be addressed; and

     (6)   the authority of the municipality to hold a special tax sale with respect to the abandoned property if the owner fails to completely and accurately respond to each notice, which shall be indicated in bold lettering. 

     b.    (1)     The municipality shall serve the notice, on a quarterly basis, to the owner of each abandoned property as follows:

     (a)   by mailing the notice by certified mail, return receipt requested, to the person designated as owner or agent on the certification of registration, or in the municipal tax records, or in the records of the Department of the Treasury; or

     (b)   by service upon the owner, or upon a person authorized to accept service on behalf of the owner in a civil matter, in accordance with the Rules Governing the Courts of the State of New Jersey.

     (2)   The date of receipt of the notice shall be considered the date of personal service or the date of return of the certified mailing.

     c.     If the owner of the abandoned property fails to verify the receipt of the notice, and the abandoned property is eligible for tax sale pursuant to R.S.54:5-19, the municipality may hold a special tax sale with respect to the abandoned property pursuant to section 24 of the "Abandoned Properties Rehabilitation Act," P.L.2003, c.210 (C.55:19-101), except that the abandoned property shall not be eligible for the special tax sale if the owner of the property completely and accurately responds to the notice, in accordance with subsection f. of this section, prior to the date of the special tax sale.

     d.    A municipality may impose and collect an annual fee on the owner of each abandoned property located within the municipality in order to defray the costs associated with implementing the provisions of this section.  Unpaid fees shall constitute a lien on the property and shall be collected in the same manner as property taxes.

     e.     A municipality shall not receive Energy Tax Receipts Property Tax Relief Aid, Consolidated Municipal Property Tax Relief Aid, Transitional Aid to Localities, or any successor discretionary aid programs for municipalities in fiscal distress, during any fiscal year in which the municipality does not request the owner of each abandoned property to document the completion of rehabilitation efforts in accordance with the provisions of this section.

     f.     (1)     The owner of an abandoned property shall respond to each notice within 30 days of the date of receipt.  The response shall document any rehabilitation efforts completed on the abandoned property in the 12 month period immediately preceding the date of delivery of the notice.  If rehabilitation efforts were not completed during that period of time, the response shall include an explanation for the failure of the owner to rehabilitate the property.  The response shall be delivered by personal service, or certified or ordinary mail, to the municipal officer responsible for receiving the response, as indicated in the notice.

     (2)   If the owner of the abandoned property fails to respond to a notice within 30 days of the date of receipt or the information provided in the response is inaccurate or incomplete, and the abandoned property is eligible for tax sale pursuant to R.S.54:5-19, the municipality may hold a special tax sale with respect to the abandoned property pursuant to section 24 of the "Abandoned Properties Rehabilitation Act," P.L.2003, c.210 (C.55:19-101), except that the abandoned property shall not be eligible for the special tax sale if the owner of the property completely and accurately responds to the notice prior to the date of the special tax sale.

 

     4.    (New section)    The Commissioner of Community Affairs shall promulgate rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate the provisions of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) on or before the first day of the sixth month following the date of enactment.

 

     5.    Section 24 of P.L.2003, c.210 (C.55:19-101) is amended to read as follows: 

     24.  Municipalities may hold special tax sales with respect to those properties eligible for tax sale pursuant to R.S.54:5-19 which are also on an abandoned property list established by the municipality pursuant to section 36 of P.L.1996, c.62 (C.55:19-55) or which are eligible for the special tax sale pursuant to section 3 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill). Municipalities electing to hold a special tax sale shall conduct that sale subject to the following provisions:

     a.     The municipality shall establish criteria for eligibility to bid on properties at the sale, which may include, but shall not be limited to: documentation of the bidder's ability to rehabilitate or otherwise reuse the property consistent with municipal plans and regulations; commitments by the bidder to rehabilitate or otherwise reuse the property, consistent with municipal plans and regulations; commitments by the bidder to take action to foreclose on the tax lien by a date certain; and such other criteria as the municipality 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;

     b.    The municipality may establish minimum bid requirements for a special tax sale that may be 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 municipality, in order to ensure that the properties to be sold will be rehabilitated or otherwise reused in a manner consistent with the public interest;

     c.     The municipality may combine properties into bid packages, and require that bidders place a single bid on each package, and reject any and all bids on individual properties that have been included in bid packages;

     d.    The municipality may sell properties subject to provisions that, if the purchaser fails to carry out any commitment that has been set forth as a condition of sale pursuant to subsection a. of this section 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 municipality, and any amount paid by the purchaser to the municipality at the special tax sale shall be forfeit to the municipality;

     e.     In the event there are two or more qualified bidders for any property or bid package in a special tax sale, the municipality may designate the unsuccessful but qualified bidder whose bid was closest to the successful bid as an eligible purchaser;

     f.     In the event that the purchaser of that property or bid package fails to meet any of the conditions of sale established by the municipality pursuant to this section, and their interest in the property or properties reverts to the municipality, the municipality 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.

     g.    The municipality shall provide notice of a special tax sale pursuant to R.S.54:5-26.  The notice shall include any special terms of sale established by the municipality pursuant to subsection b., c. or d. of this section. Nothing shall prohibit the municipality from holding a special tax sale on the same day as a standard or accelerated tax sale.

(cf: P.L.2005, c.118, s.9)

 

     6.    Section 2 of P.L.1997, c.167 (C.52:27D-439) is amended to read as follows:

     2.    a.     Commencing July 1, 1997 there is established the "Energy Tax Receipts Property Tax Relief Fund" as a special dedicated fund in the State Treasury into which there shall be credited annually, commencing in State fiscal year 1998, the sum of $740,000,000 or the amount determined pursuant to subsection e. of this section from the following: net payments under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) from sales and use of energy or utility services, net payments under the Corporation Business Tax Act (1945), P.L.1945, c.162 (C.54:10A-1 et seq.) from gas, electric, and gas and electric public utilities, whether municipal or otherwise, that were subject to tax pursuant to the provisions of P.L.1940, c.5 (C.54:30A-49 et seq.) prior to January 1, 1998, net payments under the Corporation Business Tax Act (1945), P.L.1945, c.162 (C.54:10A-1 et seq.) from telecommunications public utilities that were subject to tax pursuant to the provisions of P.L.1940, c.4 (C.54:30A-16 et seq.) as of April 1, 1997, net payments under P.L.1940, c.5 (C.54:30A-49 et seq.) from sewerage and water corporations, net payments under the "Transitional Energy Facility Assessment Act," P.L.1997, c.162 (C.54:30A-100 through C.54:30A-113), and such sums from the General Fund as may be necessary to provide that the annual amount credited to the fund shall equal $740,000,000 or the amount determined pursuant to subsection e. of this section.

     b.    Notwithstanding the provisions of P.L.1940, c.4 (C.54:30A-16 et seq.), P.L.1940, c.5 (C.54:30A-49 et seq.) and any other provision of law concerning the apportionment and distribution by the State of taxes paid by public utilities,

     (1)   There shall be paid during the State fiscal year 1998 and during each fiscal year thereafter from the "Energy Tax Receipts Property Tax Relief Fund" to the municipalities of the State the sum of $740,000,000 or the amount determined pursuant to subsection e. of this section.

     (2)   [A]  Except as provided in subsection g. of this section, a portion of the $740,000,000 or the amount determined pursuant to subsection e. of this section shall be allocated in a manner that provides that each municipality shall receive an amount not less than the largest annual amount received or to be received by the municipality from:

     (a)   the distribution of $685,000,000 from the proceeds of the public utilities franchise and gross receipts taxes under P.L.1940, c.4 (C.54:30A-16 et seq.) and P.L.1940, c.5 (C.54:30A-49 et seq.) in calendar year 1994, 1995 or 1996; or

     (b)   the distribution of $685,000,000 from the proceeds of the public utilities franchise and gross receipts taxes under P.L.1940, c.4 (C.54:30A-16 et seq.) and P.L.1940, c.5 (C.54:30A-49 et seq.) or from taxes and assessments collected in replacement of such taxes as released by the Division of Local Government Services in the Department of Community Affairs as fiscal year 1998 estimated franchise and gross receipts taxes State aid distributions by municipality prior to the certification of apportionment of such funds by the Director of the Division of Taxation and the amounts required pursuant to subsection d. of this section.

     (3)   A portion of the $740,000,000 or the amount determined pursuant to subsection e. of this section shall be allocated in a manner that provides that each municipality shall receive an amount equal to the difference, if any, between the amount it received pursuant to paragraph (2) of this subsection and the sum of the amounts that the municipality received pursuant to the certification made in the 1997 calendar year released by the Division of Local Government Services in the Department of Community Affairs as the fiscal year 1998 estimated franchise and gross receipts taxes State aid distribution of $685,000,000 and the certification of the 1997 fiscal year distribution of $45,000,000.

     (4)   The portion of the $740,000,000 or the amount, not more than $755,000,000, determined pursuant to subsection e. of this section remaining after the allocations pursuant to paragraphs (2) and (3) of this subsection shall be distributed in proportion to the amounts distributed pursuant to paragraph (2) of this subsection.

     c.     (1)     The funds distributed pursuant to paragraphs (2) and (4) of subsection b. of this section shall be distributed annually to municipalities on the following schedule: July 15, 35% of the total amount due; August 1, 10% of the total amount due; September 1, 30% of the total amount due; October 1, 15% of the total amount due; November 1, 5% of the total amount due; and December 1, 5% of the total amount due.

     (2)   The funds distributed pursuant to paragraph (3) of subsection b. of this section, prior to January 1, 2002 for all municipalities, and distributed after January 1, 2002 for municipalities operating on a State fiscal year basis, shall be distributed annually to those municipalities on or before June 30.  The funds distributed after January 1, 2002 pursuant to paragraph (3) of subsection b. of this section to calendar year municipalities shall be distributed annually on or before July 15.

     d.    The allocation set forth in paragraph (2) of subsection b. of this section shall be adjusted to increase each appropriate municipal distribution by the amount necessary to:

     (1)   make corrections to apportionment valuations or distribution values made by the Director of the Division of Taxation in the Department of the Treasury pursuant to R.S.54:30-2; and

     (2)   correct equitable distortions, as determined by the State Treasurer, resulting from the application of section 2 of P.L.1980, c.10 (C.54:30A-24.1) and section 4 of P.L.1980, c.11 (C.54:30A-61.1).

     The director shall report to the Legislature, on or before July 15, 1997, the amount and distribution of the corrections pursuant to paragraphs (1) and (2) of this subsection.

     e.     The amount credited to the "Energy Tax Receipts Property Tax Relief Fund" shall be $745,000,000 for State fiscal year 1999, $750,000,000 for each of State fiscal years 2000 and 2001, $755,000,000 for State fiscal year 2002, and for each fiscal year thereafter the amount equal to the amount credited in the prior fiscal year multiplied by the sum of 1.0 and the index rate or zero, whichever is greater.  As used in this section, "index rate" means the rate of annual percentage increase, rounded to the nearest half-percent, in the Implicit Price Deflator for State and Local Government Purchases of Goods and Services, computed and published quarterly by the United States Department of Commerce, Bureau of Economic Analysis, calculating the annual increase therein at the second calendar quarter which occurred in the next preceding State fiscal year. The Director of the Division of Local Government Services shall promulgate annually the index rate to apply in the next following State fiscal year which shall be the same as the index rate determined pursuant to section 4 of P.L.1983, c.49 (C.40A:4-45.1a).  Any amount of aid distributed to a municipality in excess of the amount distributed to the municipality from the "Energy Tax Receipts Property Tax Relief Fund" during the State fiscal year 2002 shall be used solely and exclusively by each municipality for the purpose of reducing the amount the municipality is required to raise by local property tax levy for municipal purposes.

     f.     Notwithstanding any other provision of this section or any other provision of law to the contrary, if any municipality paid a county for an amount for county purposes from the amount it received from its apportionment of taxes according to the limitations on the municipalities apportionment under section 4 of P.L.1980, c.11 (C.54:30A-61.1), the highest amount of that payment during calendar years 1994, 1995, and 1996 shall be paid annually directly to that county by the State Treasurer and be deducted from that municipality's distribution otherwise determined pursuant to paragraph (2) of subsection b. of this section.

     g.    A municipality shall not receive monies from the "Energy Tax Receipts Property Tax Relief Fund" pursuant to the provisions of subsection b. of this section during any fiscal year in which the municipality does not comply with the provisions of section 2 or section 3 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).

(cf: P.L.2002, c.3, s.1)

 

     7.    Section 2 of P.L.1999, c.168 (C.52:27D-442) is amended to read as follows:

     2.    a.     In each State fiscal year, each municipality shall receive Consolidated Municipal Property Tax Relief Aid equal to the amount of Consolidated Municipal Property Tax Relief Aid received in the prior State fiscal year multiplied by the sum of 1.0 and the index rate or zero, whichever is greater.  However, any municipality that did not receive a distribution of Consolidated Municipal Property Tax Relief Aid during fiscal year 1999 shall receive aid equal to the amount of Consolidated Municipal Property Tax Relief Aid received in the prior State fiscal year plus the product of the base year amount and the index rate or zero, whichever is greater.  As used in this section, "base year amount" means the sum of aid received by the municipality in fiscal year 1995 under those State aid programs which were consolidated in P.L.1995, c.164, the fiscal year 1996 annual appropriations act, under the Consolidated Municipal Property Tax Relief Aid distribution. As used in this section, "index rate" means the rate of annual percentage increase, rounded to the nearest half-percent, in the Implicit Price Deflator for State and Local Government Purchases of Goods and Services, computed and published quarterly by the United States Department of Commerce, Bureau of Economic Analysis, calculating the annual increase therein at the second calendar quarter which occurred in the next preceding State fiscal year. The Director of the Division of Local Government Services shall promulgate annually the index rate to apply in the next following State fiscal year which shall be the same as the index rate determined pursuant to section 4 of P.L.1983, c.49 (C.40A:4-45.1a).

     Any amount of aid distributed to a municipality in excess of the amount distributed to the municipality for Consolidated Municipal Property Tax Relief Aid during the State fiscal year 1999 shall be used solely and exclusively by each municipality for the purpose of reducing the amount the municipality is required to raise by local property tax levy for municipal purposes.  If the amount of the increased distribution exceeds the amount required to be raised by local property tax levy for municipal purposes, the balance of the increased distribution shall be used to reduce the amount the municipality is required to collect for county purposes, notwithstanding the provisions of this or any other law to the contrary.  The Director of the Division of Local Government Services in the Department of Community Affairs shall certify annually that each municipality has complied with the requirements set forth herein.

     b.    The amount appropriated for Consolidated Municipal Property Tax Relief Aid in a State fiscal year shall be sufficient to fully fund the distribution to municipalities as determined pursuant to subsection a. of this section, except that a municipality shall not receive Consolidated Municipal Property Tax Relief Aid during any fiscal year in which the municipality does not comply with the provisions of section 2 or section 3 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).

(cf: P.L.1999, c.168, s.2)

     8.    Section 1 of P.L.2011, c.144 (C.52:27D-118.42a) is amended to read as follows: 

     1.    a.   [The]    Except as otherwise provided in subsection c. of this section, the Director of the Division of Local Government Services in the Department of Community Affairs shall determine conditions, requirements, orders, and oversight for the receipt of any amount of grants, loans, or any combination thereof, provided to any municipality through the Transitional Aid to Localities program or any successor discretionary aid programs for municipalities in fiscal distress.  Conditions, requirements, or orders deemed necessary by the director may include, but not be limited to, the implementation of government, administrative, and operational efficiency and oversight measures necessary for the fiscal recovery of the municipality, including but not limited to requiring approval by the director of personnel actions, professional services and related contracts, payment in lieu of tax agreements, acceptance of grants from State, federal or other organizations, and the creation of new or expanded public services.

     b.    An additional amount not to exceed one percent of the amount appropriated in any State Fiscal Year beginning on or after July 1, 2012 for the Transitional Aid to Localities program or any successor discretionary aid programs for municipalities in fiscal distress shall be appropriated for administrative costs of that program, and for administrative costs associated with the oversight of any municipalities under State supervision pursuant to Article 4 of the "Local Government Supervision Act (1947)," P.L.1947, c.151 (C.52:27BB-54 et seq.), subject to the approval of the Director of the Division of Budget and Accounting in the Department of the Treasury.

     c.     A municipality shall not be awarded aid through the Transitional Aid to Localities program, or any successor discretionary aid programs for municipalities in fiscal distress, during any fiscal year in which the municipality does not comply with the provisions of section 2 or section 3 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).

(cf: P.L.2011, c.144, s.1)

 

     9.    This act shall take effect on the first day of the sixth month following the date of enactment.

 

 

STATEMENT

 

     This bill requires municipalities to take certain actions relating to abandoned properties.  Specifically, municipalities would be required to maintain a registry of all abandoned properties and contact the owner of each abandoned property concerning the status of rehabilitation efforts prior to receiving municipal aid.  The bill also requires the Department of Community Affairs (DCA) to publish a Statewide database of all abandoned properties.

     This bill requires every municipality to maintain a registry of all abandoned properties located within the municipality.  The registry is to include the following information for each abandoned property: (1) the tax block and lot number; (2) the street address; (3) the owner or owners of the property; (4) the person or entity responsible for rehabilitating the property; and (5) the rehabilitation efforts, if any, completed on the property.  The registry would be distinct from the abandoned property list currently maintained by certain municipalities, and the inclusion of a property on the registry would not confer any additional powers to the municipality. 

     Under the bill, each municipality is required to annually submit its abandoned property registry to the Division of Local Government Services in the DCA.  The division would be required to make available on its Internet website a Statewide database of all abandoned properties located in the State.  The database is to include the information contained in each municipal registry submitted to the division.  The database also would be searchable by municipality and by the type of entity owning each abandoned property, including financial institutions, municipalities, private residents, and other public or private entities as deemed appropriate.

     The bill also requires each municipality to deliver, on a quarterly basis, a notice to the owner of each abandoned property located in the municipality in order to solicit information concerning the status of any rehabilitation efforts.  The owner of the property is required to respond by documenting any rehabilitation efforts completed on the property within the previous 12 month period.  If the owner of an abandoned property has designated an agent to manage the property, the notice may be delivered to that agent, who may also respond on behalf of the property owner.

     In addition, the bill authorizes a municipality to hold a special tax sale concerning any abandoned property pursuant to the "Abandoned Properties Rehabilitation Act," if: (1) the property is eligible for tax sale pursuant to R.S.54:5-19; and (2) the owner of the property fails to verify the receipt of the notice, the owner of the property fails to respond within 30 days of the date of receipt, or the response is inaccurate or incomplete.  However, an abandoned property would not be eligible for a special tax sale if the owner of the property adequately responds to the notice prior to the date of the special tax sale.

     In order defray the costs associated with implementing this bill, municipalities would be authorized to impose and collect an annual fee on the owner of each abandoned property.  The unpaid fees would constitute a lien on the property and would be collected in the same manner as property taxes. 

     The bill also provides that a municipality will not receive any of the following forms of municipal aid during any fiscal year in which it fails to comply with the provisions of the bill: Energy Tax Receipts Property Tax Relief Aid; Consolidated Municipal Property Tax Relief Aid; Transitional Aid to Localities, or any successor discretionary aid program for municipalities in fiscal distress. 

     Given the deleterious effects of abandoned properties on neighboring communities, municipalities currently possess broad powers to rehabilitate abandoned properties.  It is the intent of the sponsor to encourage accountability amongst municipalities and the owners of abandoned properties as it relates to the rehabilitation of those properties.

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