Definitions relating to abandoned property (from
N.J.S.A. 55:19-54):
Any property that is determined to be abandoned pursuant
to P.L. 2003, c. 210 (N.J.S.A. 55:19-78 et al.);
A person designated or appointed by the municipal governing
body pursuant to Section 3 of P.L. 1942, c. 112 (N.J.S.A. 40:48-2.5).
Inventory of abandoned property; list to be
maintained; publication in official newspaper; notice to owner of
record; challenge by owner (from N.J.S.A. 55:19-55): The City of Hackensack
may direct the public officer to identify abandoned property for the
purpose of establishing an abandoned property list throughout the
City, or within those parts of the City as the governing body may
designate. Each item of abandoned property so identified shall include
the tax block and lot number, the name of the owner of record, if
known, and the street address of the lot.
A.
The public officer shall establish and maintain a
list of abandoned property, to be known as the "abandoned property
list." The City of Hackensack may add properties to the abandoned
property list at any time and may delete properties at any time when
the public officer finds that the property no longer meets the definition
of an abandoned property. An interested party may request that a property
be included on the abandoned property list following that procedure
set forth in Section 31 of P.L. 2003, c. 210 (N.J.S.A. 55:19-105).
B.
An abandoned property shall not be included on the
abandoned property list if rehabilitation is being performed in a
timely manner, as evidenced by building permits issued and diligent
pursuit of rehabilitation work authorized by those permits. A property
on which an entity other than the City of Hackensack 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 in accordance
with the provisions of Section 29 of P.L. 2003, c. 210 (N.J.S.A. 55:19-103).
C.
The public officer shall establish the abandoned property
list or any additions thereto by publication in the official newspaper
of the City of Hackensack, 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 mortgagee, servicing organization, or property tax processing
organization that receives a duplicate copy of the tax bill pursuant
to subsection d. of N.J.S.A. 54:4-64. 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 Section 5 of P.L. 1942, c. 112 (N.J.S.A. 40:48-2.7).
The mailed notice shall indicate the factual basis for the public
officer's finding that the property is abandoned property as that
term is defined in Section 35 of P.L. 1996, c. 62 (N.J.S.A. 55:19-54)
and the rules and regulations promulgated thereunder, specifying 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 county clerk or register of deeds and mortgages,
as the case may be, of the county wherein the property is situate.
This filing shall have the same force and effect as a notice of lis
pendens under N.J.S.A. 2A:15-6. The notice shall be indexed by the
name of the property owner as defendant and the name of the City as
plaintiff, as though an action had been commenced by the City against
the owner.
D.
An owner or lienholder may challenge the inclusion of his property on the abandoned property list determined pursuant to Subsection B of this section 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 pursuant to Subsection D of this section, 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 by the property owner averring that the property is not abandoned and stating the reasons for such averment, 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, and 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 in Section 35 of P.L. 1996, c. 62 (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.
E.
The property owner may challenge an adverse determination of an appeal with the public officer pursuant to Subsection E of this section, by instituting, in accordance with the New Jersey Court Rules, a summary proceeding in the Superior Court, Law Division, sitting in the county in which the property is located, 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 pursuant to Subsection E of this section. The sole ground for appeal shall be that the property in question is not abandoned property as that term is defined in Section 35 of P.L. 1996, c. 62 (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.
F.
The public officer shall promptly remove any property
from the abandoned property list that has been determined not to be
abandoned on appeal.
G.
The abandoned property list shall become effective,
and the City of Hackensack shall have the right to pursue any legal
remedy with respect to properties on the abandoned property list at
such time as any one property has been placed on the list in accordance
with the provisions of this section, upon the expiration of the period
for appeal with respect to that property or upon the denial of an
appeal brought by the property owner.
Sale of tax lien on abandoned property; remediation
costs (from N.J.S.A. 55:19-56):
A.
Notwithstanding 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 six or more quarters as of the
date of expiration of the right to appeal 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
in 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, as appropriate. The City of Hackensack 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 Section 36 of P.L. 1996, c. 62 (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 of Hackensack 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 Section 3 of P.L.
2003, c. 210 (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 pursuant to N.J.S.A.
54:4-67 of the City of Hackensack in effect for the time period when
the amounts were expended. The tax sale certificate purchaser, assignee
or transferee, under the auspices and with the Authority of the City
of Hackensack, 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 Hackensack harmless is filed with the public officer. If the tax
sale certificate is not purchased at the initial auction of the tax
sale certificate and the City of Hackensack purchases the certificate
pursuant to N.J.S.A. 54:5-34, then the City of Hackensack is authorized
and empowered to convey and transfer to the Authority or any of its
subsidiaries, without receiving compensation therefor, all of its
right, title and interest in that certificate; however, any portion
of the amount paid to the Tax Collector to redeem the tax sale certificate
that represents tax or other City lien delinquencies and subsequent
City liens, including interest, shall be returned by the Tax Collector
of the City of Hackensack.
B.
Remediation.
(1)
If the City of Hackensack or the Authority or its
subsidiaries 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
lis pendens notice under subsection d. of Section 36 of P.L. 1996,
c. 62 (N.J.S.A. 55:19-55), that entity 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 of Hackensack or Authority
or its subsidiary, as appropriate, 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 Hackensack or Authority or its subsidiaries,
as appropriate, 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 Hackensack
or the Authority or its subsidiaries pursuant to this subsection,
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 of Hackensack
or the Authority, except for City taxes, liens and assessments and
any lien imposed pursuant to the "Spill Compensation and Control Act,"
P.L. 1976, c. 141 (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 county clerk or
register of deeds and mortgages, as appropriate, in the county in
which the property is located.
C.
Failure to remediate.
(1)
Failure of an owner or lienholder to remove a property
from the abandoned property list within the period of time for appeal
of inclusion of the property on the list pursuant to Subsection e.
of Section 36 of P.L. 1996, c. 62 (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.
Removal of property from list of abandoned properties;
remediation (from N.J.S.A. 55:19-57):
A.
An owner may remove a property from the list of abandoned
properties prior to sale of the tax sale certificate by paying all
taxes and City liens due, including interest and penalties, and:
(1)
By posting cash or a bond equal to the cost of remediating
all conditions because of which the property has been determined to
be abandoned pursuant to Section 36 of P.L. 1996, c. 62 (N.J.S.A.
55:19-55) and posting cash 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 cash 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 to Section 36 of P.L. 1996, c. 62 (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 cash or a 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 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.
Acquisition of tax sale certificate for abandoned
property; action to foreclose right of redemption (from N.J.S.A. 55:19-58):
A.
When a person other than the City of Hackensack or
the Authority or its subsidiaries 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 six months following the date of the
sale of the tax sale certificate.
B.
When the City of Hackensack is the purchaser at tax
sale of any property on the abandoned property list pursuant to N.J.S.A.
54:5-34, or when the Authority or any of its subsidiaries acquires
the tax sale certificate pursuant to subsection a of Section 37 of
P.L. 1996, c. 62 (N.J.S.A. 54:5-104.34), 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 cash or a bond equal to the cost of remediating
the conditions because of which the property was determined to be
abandoned pursuant to Section 36 of P.L. 1996, c. 62 (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 Section
36 of P.L. 1996, c. 62 (N.J.S.A. 55:19-56) have been remedied in full.
Entry of final judgment barring right of redemption;
grounds for reopening judgment (from N.J.S.A. 55:19-59). 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 P.L. 1996, c. 62 (N.J.S.A. 55:19-20 et al.) shall
be construed liberally in favor of the purchaser, assignee or transferee
of the tax sale certificate.