[HISTORY: Adopted by the Borough Council of the Borough of Medford Lakes 11-9-2022 by Ord. No. 691.[1] Amendments noted where applicable.]
[1]
Editor's Note: This ordinance also repealed former Ch. 180, Properties, Abandoned, adopted 3-24-2016 by Ord. No. 631.
It is the purpose and intent of Council to establish a process to address the deterioration, crime, and decline in value of Borough neighborhoods caused by property with foreclosing or foreclosed mortgages located within the Borough, and to identify, regulate, limit and reduce the number of these properties located within the Borough. It has been determined that owner-occupied structures are generally better maintained when compared to vacant structures, even with a diligent off-site property owner. Vacant structures or structures owned by individuals who are economically strained and unable to meet their mortgage obligations are often not properly or diligently maintained, which contributes to blight, declined property values, and has a negative impact on social perception of the residential areas where they are located. It is Council's further intent to establish a registration program as a mechanism to help protect neighborhoods from becoming blighted through the lack of adequate maintenance of properties that are in foreclosure or foreclosed and to provide a mechanism to avert foreclosure actions through timely intervention, education, or counseling of property owners. The Borough may contract with a third-party administrator selected in accordance with state law.
The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning.
ABANDONED or ABANDONED REAL PROPERTY
Any real property located in the municipality that it is not legally occupied by a mortgagor or tenant, which is in such condition that it cannot be legally reoccupied, because of the presence or finding of at least two of the following:
A. 
Overgrown or neglected vegetation;
B. 
The accumulation of newspapers, circulars, flyers, or mail on the property;
C. 
Disconnected gas, electric, or water utility services to the property;
D. 
The accumulation of hazardous, noxious, or unhealthy substances or materials on the property;
E. 
The accumulation of junk, litter, trash, or debris on the property;
F. 
The absence of window treatments such as blinds, curtains, or shutters;
G. 
The absence of furnishings and personal items;
H. 
Statements of neighbors, delivery persons, or government employees indicating that the property is vacant and abandoned;
I. 
Windows or entrances to the property that are boarded up or closed off, or multiple window panes that are damaged, broken, and unrepaired;
J. 
Doors to the property that are smashed through, broken off, unhinged, or continuously unlocked;
K. 
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;
L. 
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;
M. 
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;
N. 
A written statement issued by a mortgagor expressing the clear intent of all mortgagors to abandon the property; or
O. 
Any other reasonable indicia of abandonment.
APPLICABLE CODES
To include, but not be limited to, the municipality's Zoning Code, the municipality's Code of Ordinances ("Municipality Code"), and the New Jersey Building Code.
BLIGHTED PROPERTY
A. 
Properties that have broken or severely damaged windows, doors, walls, or roofs which create hazardous conditions and encourage trespassing; or
B. 
Properties whose maintenance is not in conformance with the maintenance of other neighboring properties causing a decrease in value of the neighboring properties; or
C. 
Properties cited for a public nuisance pursuant to the Municipality Code; or
D. 
Properties that endanger the public's health, safety, or welfare because the properties or improvements thereon are dilapidated, deteriorated, or violate minimum health and safety standards or lack maintenance as required by the Municipality and Zoning Codes.
CREDITOR or FORECLOSING CREDITOR
A mortgagee or an agent or assignee of a mortgagee, such as the servicer, who has filed a complaint in the Superior Court seeking to foreclose upon a residential or commercial mortgage. If the entity seeking to foreclose upon the residential or commercial mortgage changes as a result of an assignment, transfer, or otherwise after the filing of the foreclosure complaint in the Superior Court, the new entity shall be deemed the creditor for purposes of this section. For purposes of this section, a creditor shall not include the state, a political subdivision of the state, a state, county, or local government entity, or their agent or assignee, such as the servicer.
ENFORCEMENT OFFICER
Any law enforcement officer, building official, zoning inspector, code enforcement officer, fire inspector or building inspector, or other person authorized by the municipality to enforce the requirements of this chapter and any applicable code(s).
MUNICIPALITY
The Borough of Medford Lakes.
OWNER
Any person, legal entity or other party having any ownership interest, whether legal or equitable, in real property. This term shall also apply to any person, legal entity or agent responsible for the construction, maintenance or operation of the property involved.
PROPERTY MANAGEMENT COMPANY
A local property manager, property maintenance company or similar entity responsible for the maintenance of abandoned real property.
VACANT PROPERTY
Abandoned or abandoned real property as defined above.
These sections shall be considered cumulative and not superseding or subject to any other law or provision for same, but rather be an additional remedy available to the municipality above and beyond any other state, county or local provisions for same.
Pursuant to the provisions of this chapter, the municipality or designee shall administer this registration program either directly or through a third-party administrator including cataloging each abandoned property within the municipality, containing the information required by this chapter.
A. 
Any creditor filing a summons and complaint in an action to foreclose shall, in addition to the notice provided to the municipality pursuant to Section 17 of P.L. 2008, c. 127 (N.J.S.A. 46:10B-51) or Section 2 of P.L. 2021, c. 444 (N.J.S.A. 40:48-2.12s2), register the residential or commercial property with the municipality's property registration program as a property in foreclosure and, as part of that registration:
(1) 
Provide the municipality with the information regarding the creditor required by paragraph (1) of Subsection a of Section 17 of P.L. 2008, c. 127 (N.J.S.A. 46:10B-51) or paragraph (1) of Subsection a of Section 2 of P.L. 2021, c. 444 (N.J.S.A. 40:48-2.12s2);
(2) 
Identify the date the summons and complaint in an action to foreclose on a mortgage was filed against the subject property, the court in which it was filed, and the docket number of the filing; and
(3) 
Identify whether the property is vacant and abandoned in accordance with the definition in the ordinance required by this subsection.
B. 
If there is any change in the name, address, or telephone number for a representative, agent, or individual authorized to accept service on behalf of a creditor required to register pursuant to the property registration program following the filing of the summons and complaint, the creditor shall update the property registration program within 10 days of the change in that information.
C. 
If the registered property becomes vacant or abandoned (as defined in this chapter) after the property is initially registered with the municipality, the creditor filing a summons and complaint in an action to foreclose shall update the property registration with the municipality to reflect the change in the property's status.
D. 
A foreclosing creditor located outside of the State of New Jersey shall appoint a representative or agent in the State of New Jersey to act for said foreclosing creditor. Notwithstanding anything to the contrary herein, an out-of-state creditor found by the Municipal Court of the municipality, or by any other court of competent jurisdiction, to be in violation of the requirement to appoint an in-state representative or agent pursuant to the ordinance shall be subject to a fine of $2,500 for each day of the violation. Any fines imposed on a creditor for the failure to appoint an in-state representative or agent shall commence on the day after the ten-day period set forth in paragraph (1) of Subsection a of Section 17 of P.L. 2008, c. 127 (N.J.S.A. 46:10B-51) or paragraph (1) of Subsection a of Section 2 of P.L. 2021,c. 444 (N.J.S.A. 40:48-2.12s2) for providing notice to the Municipal Clerk that a summons and complaint in an action to foreclose on a mortgage has been served.
E. 
A nonrefundable annual registration fee in the amount of $500 per property shall accompany the registration. An additional $2,000 registration fee per property shall be due annually if the property is vacant or abandoned (as defined in this chapter) when the summons and complaint in an action to foreclose is filed, or becomes vacant and abandoned (as defined in this chapter) at any time thereafter while the property is in foreclosure.
F. 
All fees must be paid directly from foreclosing creditor.
G. 
This section shall also apply to properties that have been the subject of a foreclosure sale where the title was transferred to the beneficiary of a mortgage involved in the foreclosure and any properties transferred under a deed in lieu of foreclosure/sale.
H. 
Properties subject to this section shall remain under the annual registration requirement, and the requirements of this chapter, as long as they remain in foreclosure.
I. 
Any foreclosing creditor that has registered a property under this section must report any change of information contained in the registration within 10 days of the change.
J. 
Failure of the foreclosing creditor to properly register or to modify the registration form as required herein to reflect a change of circumstances as required by this chapter is a violation of the chapter and shall be subject to enforcement.
K. 
Pursuant to any administrative or judicial finding and determination that any property is in violation of this chapter, the municipality may take the necessary action to ensure compliance with and place a lien on the property for the cost of the work performed to benefit the property and bring it into compliance consistent with this Code and the statutes of the State of New Jersey.
A creditor filing a summons and complaint in an action to foreclose shall be responsible for the care, maintenance, security, and upkeep of the exterior of the property if the property is vacant and abandoned at any time while the property is registered with the property registration program, including but not limited to the following:
A. 
Properties shall be kept free of weeds, overgrown brush, dead vegetation, trash, junk, debris, building materials, any accumulation of newspapers, circulars, flyers, notices, except those required by federal, state or local law, discarded personal items including, but not limited to, furniture, clothing, large and small appliances, printed material or any other items that give the appearance that the property is abandoned.
B. 
The property shall be maintained free of graffiti or similar markings by removal or painting over with an exterior-grade paint that matches the color of the exterior structure.
C. 
Front, side, and rear yards, including landscaping, shall be maintained in accordance with the applicable code(s) at the time registration was required.
D. 
Yard maintenance shall include, but not be limited to, grass, weeds, ground covers, bushes, shrubs, hedges or similar plantings, decorative rock or bark or artificial turf/sod designed specifically for residential installation. Acceptable maintenance of yards and/or landscape shall not include gravel, broken concrete, asphalt or similar material.
E. 
Maintenance shall include, but not be limited to, watering, irrigation, cutting and mowing of required ground cover or landscape and removal of all trimmings.
F. 
Pools and spas shall be maintained so the water remains free and clear of pollutants and debris and shall comply with the regulations set forth in the applicable code(s).
G. 
Failure to properly maintain the property may result in a violation of the applicable code(s) and issuance of a citation or notice of violation in accordance with Chapter 180 of the Borough of Medford Lakes' Code of Ordinances. Pursuant to a finding and determination by the municipality's Code Enforcement Officer or a court of competent jurisdiction, the municipality may take the necessary action to ensure compliance with this section.
H. 
In addition to the above, the property is required to be maintained in accordance with the applicable code(s).
A. 
Properties subject to this chapter shall be maintained in a secure manner so as not to be accessible to unauthorized persons.
B. 
A "secure manner" shall include, but not be limited to, the closure and locking of windows, doors, gates and other openings of such size that may allow unauthorized access to the interior of the property or structure. Broken windows, doors, gates and other openings of such size that may allow unauthorized access to the interior of the property or structure must be repaired. Broken windows shall be secured by reglazing of the window, and boarding of broken windows is prohibited.
C. 
A creditor filing a summons and complaint in an action to foreclose shall designate a property manager to perform the work necessary to bring the property into compliance with the applicable code(s), and the property manager must perform regular monthly inspections to verify compliance with the requirements of this chapter and any other applicable laws.
D. 
A creditor filing a summons and complaint in an action to foreclose shall post a sign affixed to the inside of the property and visible to the public indicating the name, address, and telephone number of the creditor or an out-of-state creditor's in-state representative or agent for the purpose of receiving service of process, or 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 while registered with the property registration program.
All abandoned real property is hereby declared to be a public nuisance, the abatement of which pursuant to the police power is hereby declared to be necessary for the health, welfare and safety of the residents of the municipality.
Any person who shall violate the provisions of this chapter may be cited and fined as provided in this Code and/or applicable New Jersey statutes. The following table shows violations of these sections, as may be amended from time to time, which may be enforced pursuant to the provisions of this regulation; and the dollar amount of civil penalty for the violation of these sections as it may be amended from time to time. The descriptions of violations below are for informational purposes only and are not meant to limit or define the nature of the violations or the subject matter of this Code, except to the extent that different types of violations of the Code may carry different civil penalties. For each Code section listed in the schedule of civil penalties, the entirety of the section may be enforced by the mechanism provided in this section, regardless of whether all activities prescribed or required are described in the "Description of Violation" column. To determine whether a particular activity is prescribed or required by this Code, the relevant Code section(s) shall be examined.
Description of Violation
Civil Penalty
Except as otherwise provided herein, failure to comply with the requirements of this chapter and/or any violation of the sections stated within this chapter
Up to $1,500 per each day of the violation
Adherence to this chapter does not relieve any person, legal entity or agent from any other obligations set forth in any applicable code(s) which may apply to the property. Upon sale or transfer of title to the property, the owner shall be responsible for all violations of the applicable code(s), and the owner shall be responsible for meeting with the municipality's Code Enforcement Officer within 45 days for a final courtesy inspection report.
A. 
If the enforcement officer has reason to believe that a property subject to the provisions of this chapter is posing a serious threat to the public health, safety and welfare, the Code Enforcement Officer may temporarily secure the property at the expense of the mortgagee and/or owner, and may bring the violations before a court of competent jurisdiction as soon as possible to address the conditions of the property.
B. 
A court of competent jurisdiction shall have the authority to require the mortgagee and/or owner of record of any property affected by this section to implement additional maintenance and/or security measure, including, but not limited to, securing any and all doors, windows or other openings, employment of an on-site security guard or other measures as may be reasonably required to help prevent further decline of the property.
C. 
If there is a finding that the condition of the property is posing a serious threat to the public health, safety and welfare, then a court of competent jurisdiction may direct the municipality to abate the violations and charge the mortgagee with the cost of the abatement.
D. 
If the mortgagee does not reimburse the municipality for the cost of temporarily securing the property, or of any abatement directed by the court of competent jurisdiction, within 30 days of the municipality sending the mortgagee the invoice, then, consistent with the applicable provisions of this Code or the statutes of the State of New Jersey, the municipality may lien the property with such cost, along with an administrative fee of $500 to recover the administrative personnel services.
Whoever opposes, obstructs or resists any enforcement officer or any person authorized by the Enforcement Office in the discharge of duties as provided in this chapter shall be punishable as provided in the applicable code(s) or a court of competent jurisdiction.
Any enforcement officer or any person authorized by the municipality to enforce the sections here within shall be immune from prosecution, civil or criminal, for reasonable, good faith entry upon real property while in the discharge of duties imposed by this chapter.
Registration and penalty fees outlined in this chapter may be modified by the Council for the Borough of Medford Lakes in accordance with applicable law.