[Adopted 9-22-2016 by Ord. No. 15-2016]
A.
ABANDONED PROPERTY
ABANDONED PROPERTY LIST
BUILDING
CITY COUNCIL
INTERESTED PARTIES
LIENHOLDER or MORTGAGE HOLDER
OWNER
PROPERTY
PROPERTY IN NEED OF REHABILITATION
PUBLIC OFFICER
QUALIFIED REHABILITATION ENTITY
VACANT PROPERTY
As used in this article, the following terms shall have the meanings
indicated:
Any property that is determined to be abandoned pursuant
to P.L. 2003, c. 210, N.J.S.A. 55:19-81.
An inventory list of abandoned property, created pursuant
to the Act.
Any building, or structure, or part thereof, whether used
for human habitation or otherwise, and includes any outbuildings,
and appurtenances belonging thereto.
The City Council of the City of Somers Point.
Includes any resident of the City of Somers Point, any owner
or operator of a business within the City of Somers Point, or any
organization representing the interests of residents or business owners
or otherwise engaged in furthering the revitalization and improvement
of the neighborhood in which the property is located.
Any person or entity holding a note, mortgage, or other interest
secured by a building or any part thereof.
The holder, or holders, of title to an abandoned property,
any foreclosing entity subject to the provisions of N.J.S.A. 46:10B-51
(P.L. 2008, c. 127, § 17, as amended by P.L. 2009, c. 296),
or any other entity determined by the City of Somers Point to have
authority to act with respect to the property.
Any building or structure and the land appurtenant thereto.
Improved, legally vacant property in a state of disrepair
as set forth in N.J.S.A. 40A:12A-3 or 40A:12A-14, except that it need
not be in an area in need of rehabilitation.
A person designated or appointed by resolution of the City
Council pursuant to N.J.S.A. 40:48-2.5, any officer of the municipality
qualified to carry out the responsibilities set forth in N.J.S.A.
55:19-78 et seq. as may be designated by resolution of the City Council,
the Code Enforcement Officer or his/her designee, and the Construction
Code Official or his/her designee.
An entity organized or authorized to do business under the
New Jersey statutes which shall have as one of its purposes the construction
or rehabilitation of residential or nonresidential buildings, the
provision of affordable housing, the restoration of abandoned property,
the revitalization and improvement of urban neighborhoods, or similar
purpose, and which shall be well qualified by virtue of its staff,
professional consultants, financial resources, and prior activities
to carry out the rehabilitation of vacant buildings, as set forth
under N.J.S.A. 55:19-80.
Any building used or to be used as a residence or commercial
or industrial structure which is not legally occupied or at which
substantially all lawful construction operations or occupancy has
ceased, and which is in such condition that it cannot legally be reoccupied
without repair or rehabilitation, including, but not limited to, any
property meeting the definition of "abandoned property" in N.J.S.A.
55:19-54, 55:19-78, 55:19-79, 55:19-80 and 55:19-81; provided, however,
that any property where all building systems are in working order,
where the building and grounds are maintained in good order, or where
the building is in habitable condition, and where the building is
being actively marketed by its owner for sale or rental, shall not
be deemed a vacant property for purposes of this article.
B.
All undefined terms in this article are given the definition set
forth in the Act or otherwise at law or their common dictionary meaning,
as the case may be.
A.
Except as otherwise provided in N.J.S.A. 55:19-83, any property that
has not been legally occupied for a period of six months and which
meets any one of the following additional criteria may be deemed to
be abandoned property upon a determination by the public officer that:
(1)
The property is in need of rehabilitation, in the reasonable judgment
of the public officer, and no rehabilitation has taken place during
that same six-month period; or
(2)
Construction was initiated on the property and was discontinued prior
to completion, leaving the building unsuitable for occupancy, and
no construction has taken place for at least six months as of the
date of a determination by the public officer; or
(3)
At least one installment of property tax remains unpaid and delinquent
on that property as of the date of a determination by the public officer;
or
(4)
The property has been determined to be a nuisance by the public officer,
in accordance with N.J.S.A. 55:19-82, for one or more of the following
reasons:
(a)
The property has been found to be unfit for human habitation,
occupancy or use pursuant to N.J.S.A. 40:48-2.3;
(b)
The condition and vacancy of the property materially increases
the risk of fire to the property and adjacent properties;
(c)
The property is subject to unauthorized entry leading to potential
health and safety hazards; the owner has failed to take reasonable
and necessary measures to secure the property; or the municipality
has secured the property in order to prevent such hazards after the
owner has failed to do so;
(d)
The presence of vermin or the accumulation of debris, uncut
vegetation or physical deterioration of the structure or grounds has
created potential health and safety hazards, and the owner has failed
to take reasonable and necessary measures to remove the hazards; or
(e)
The dilapidated appearance or other condition of the property
materially affects the welfare, including the economic welfare, of
the residents of the area in close proximity to the property, and
the owner has failed to take reasonable and necessary measures to
remedy the conditions.
B.
A property which contains both residential and nonresidential space
may be considered abandoned pursuant to N.J.S.A. 55:19-78 et seq.
so long as 2/3 or more of the total net square footage of the building
was previously legally occupied as residential space and none of the
residential space has been legally occupied for at least six months
at the time of the determination of abandonment by the public officer.
A.
The public officer shall identify abandoned property within the City
of Somers Point for the purpose of establishing an abandoned property
list. The abandoned property list shall include, for each abandoned
property identified, the tax block and lot number, the name of the
owner of record, if known, and the street address of the lot. The
public officer may add properties to the abandoned property list at
any time, and may delete properties at any time when he or she finds
that the property no longer meets the definition of an "abandoned
property."
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 Somers Point 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 calendar
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.
C.
Publication and notice.
(1)
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 Somers Point,
which publication shall constitute public notice, and, within 10 calendar
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 N.J.S.A. 54:4-64, Subdivision
d.
(2)
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 Somers
Point as "plaintiff" and the name of the property owner as "defendant,"
as though an action had been commenced by the City against the owner.
D.
Appeals.
(1)
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 calendar days of the owner's receipt
of the certified notice or 40 calendar 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.
(2)
For good cause shown, the public officer shall accept a late filing
of an appeal. Within 30 calendar 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.
E.
The property owner may challenge an adverse determination of an appeal by the public officer made pursuant to Subsection D of this § 169-84 by instituting, in accordance with the New Jersey Court Rules, a summary trial proceeding in the New Jersey Superior Court, Atlantic County. Such action shall be instituted within 20 calendar days of the date of the notice of decision mailed by the public officer. The sole ground for appeal and new hearing before the Superior Court 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.
F.
The public officer shall promptly remove any property from the abandoned
property list that has been determined by the public officer, or by
the court on appeal, not to be abandoned and may, in his/her discretion,
remove properties from said list whenever the public officer deems
such removal appropriate under the circumstances.
G.
The abandoned property list shall become effective, and the City
of Somers Point shall have the right to pursue any legal remedy with
respect to properties on the list, at any time after at least one
property has been placed on the list and following the expiration
of the period for appeal with respect to that first property or upon
the denial of an appeal brought by the property owner of that first
property; and such list shall continue as may be amended or supplemented
by the public officer.
A.
Any interested party may submit a written request to the public officer
asserting that any property within the City of Somers Point should
be included on the abandoned property list. The written request must
specify the street address and block and lot number of the property
to be included and the grounds for its inclusion. Within 30 calendar
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.
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 calendar days' notice of any such
hearing. The party shall provide the public officer with notice at
least 10 calendar 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.
A.
An owner may request removal of their property from the Abandoned
Properties 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 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 N.J.S.A. 55:19-55 55 and by 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 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 calendar 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
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.
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 calendar day following the expiration of that time of appeal
or final determination on an appeal.
B.
Rehabilitation and repairs.
(1)
The public officer may, at his/her 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.
(2)
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.
(3)
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 herein.
(4)
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.
(5)
The tax sale certificate purchaser, assignee or transferee, with
the authority of the City of Somers Point, 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, properly endorsed as
required by the City, and an indemnification agreement holding the
City of Somers Point harmless, have been filed with the public officer
and with the City Clerk.
(6)
If the tax sale certificate is not purchased at the initial auction
of the tax sale certificate and the City purchases the certificate
pursuant to N.J.S.A. 54:5-34, then the City is authorized and empowered
to convey and transfer to the City, 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.
C.
If the City of Somers Point acquires the tax sale, certificate for
a property on the abandoned property list, then, upon 10 calendar
days' written notice to the property owner and any mortgagee of record
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 a bond in favor
of the City of Somers Point in order to ensure performance. The amount
and conditions of the bond shall be determined by the public officer.
D.
The cost of remediation incurred by the City of Somers Point, or
as 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 also be filed and recorded
as a lien by the entity incurring the cost with the Atlantic County
Clerk.
E.
Failure of an owner or lienholder to cause the removal of a 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 or lienholder
to continue to maintain the property as abandoned property.
F.
The clearance, development, redevelopment, or repair of property
being maintained as an abandoned property pursuant to this article
shall be considered a public purpose and public use, for which the
power of eminent domain may be lawfully exercised pursuant to N.J.S.A.
55:19-56, Subdivision C(2).
A.
When a person other than the 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 six months following the date of the
sale of the tax sale certificate.
B.
When the 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 Subdivision b of N.J.S.A. 54:5-77. 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 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. 55:19-56
have been remedied in full.
A.
The City of Somers Point 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 public officer, with the approval of City Council, 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 rehabilitate or otherwise reuse the
property consistent with City plans and regulations;
(3)
Commitments by the bidder to take action to foreclose on the tax
lien by a date certain; and
(4)
Such other criteria as the public officer, with the approval of City
Council, 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 public officer, with the approval of City Council, may establish
minimum bid requirements for a special tax sale that are less than
the full amount of the taxes, interest and penalties due, to help
ensure that the properties will be rehabilitated or otherwise utilized
in a manner consistent with the public interest.
D.
The public officer, with the approval of City Council, 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 Council 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 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. 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 their 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.
G.
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.
When a person or entity other than the City of Somers Point 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.
When the City of Somers Point 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 Subdivision 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 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 have been remedied in full.
A.
If an entity other than the City of Somers Point 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 under the
following limited circumstances:
(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 Subsection 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 City Council 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 N.J.S.A.
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 Somers
Point may be brought by the City in the Superior Court, Atlantic County,
pursuant to N.J.S.A. 55:19-84, 55:19-85 and 55:19-86, for the relief
set forth in those statutes.
(1)
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, the court may authorize
the City to take possession and control of the property and to develop
its own rehabilitation plan for the property.
(2)
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.
(3)
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
clear evidence that the owner has failed to take any action to further
the rehabilitation of the property.
B.
A complaint filed pursuant to N.J.S.A. 55:19-85 and Subsection A of this section shall include:
(1)
Documentation that the property is on the City's abandoned property
list or a certification by the public officer that the property is
abandoned; and
(2)
A statement by an individual holding appropriate professional qualifications
that there are sound reasons that the building should be rehabilitated
rather than demolished based upon the physical, aesthetic or historical
character of the building or the relationship of the building to other
buildings and lands within its immediate vicinity.
C.
Filing of complaint.
(1)
Within 10 days of filing a complaint, the plaintiff shall file a
notice of lis pendens with the Atlantic County recording officer.
(2)
At least 30 days before filing the complaint, the City shall serve
a notice of intention to take possession of an abandoned building.
The notice shall inform the owner and interested parties that the
property has not been legally occupied for six months and of those
criteria that led to a determination of abandonment pursuant to N.J.S.A.
55:19-81.
(3)
The notice shall provide that, unless the owner or a party in interest
prepares and submits a rehabilitation plan to the appropriate City
officials, the City will seek to gain possession of the building to
rehabilitate the property and the associated cost shall be a lien
against the property, which may be satisfied by the sale of the property,
unless the owner applies to the court for reinstatement of control
of the property as provided in N.J.S.A. 55:19-92.
(4)
After the complaint is filed, the complaint shall be served on the
parties in interest in accordance with the New Jersey Rules of Court.
(5)
After serving the notice of intention pursuant to this subsection,
the City may enter upon that property, after written notice to the
owner by certified mail, return receipt requested, in order to secure,
stabilize or repair the property, or in order to inspect the property
for purposes of preparing the plan to be submitted to the court pursuant
to N.J.S.A. 55:19-89.
D.
An owner may defend against a complaint filed pursuant to N.J.S.A.
55:19-85 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.
(1)
Any plan submitted by an owner to defend against a complaint shall
be submitted within 60 calendar days after the complaint has been
filed, unless the court provides the owner with an extension of time
for good cause shown.
(2)
A plan submitted by an owner pursuant to this section shall include,
but not be limited to:
(a)
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;
(b)
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;
(c)
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
(d)
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.
E.
The court may 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 rehabilitation plan of the owner or other
party in interest, 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
and property to the City to complete the rehabilitation plan, and
to grant authorization to use the bond proceeds for the rehabilitation.
The owner or other party in interest shall provide monthly reports
to the court and to City Council on its activities and progress toward
rehabilitation and reuse of the property.
(2)
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 representatives or agents,
or both, lack the qualifications, background or other criteria necessary
to ensure that the plan will be carried out successfully.
F.
Plan of mortgage holder or lienholder; reports.
(1)
If an owner is unsuccessful in defending against a complaint filed
pursuant to N.J.S.A. 55:19-85, 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 calendar
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
compliance with the plan.
(2)
The mortgage holder or lienholder, as the case may be, shall provide
monthly reports to the court and the public officer on its activities
and progress toward rehabilitation and reuse of the property.
G.
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.
H.
Any sums incurred or advanced for the purpose of rehabilitating the
property by a mortgage holder or lienholder granted possession of
a property, including court costs and reasonable attorneys' fees,
may be added to the unpaid balance due to 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 shall submit a plan to the court which conforms
to 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 possession of the property if it finds
that:
(1)
The proposed rehabilitation and reuse of the property is appropriate
and beneficial;
(2)
The City is qualified to undertake the rehabilitation and reuse of
the property; and
(3)
The plan submitted by the City represents a realistic and timely
plan for the rehabilitation and reuse of the property.
C.
The City 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 findings pursuant to this section,
the court may consult with qualified parties, including the Department
of Community Affairs, and, upon request by a party in interest, may
hold a hearing on the plan.
A.
The City Council 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. The designation shall be made by a
resolution of City Council.
B.
Regardless of whether the City exercises its rights directly or the
City Council designates a qualified rehabilitation entity pursuant
to this section, the City shall maintain, safeguard, and maintain
insurance on the property while in possession of such property. Notwithstanding
the City's possession of the property, the owner of the property shall
not be relieved of any civil or criminal liability or any duty imposed
by reason of acts or omissions of the owner.
C.
If the City has been granted possession of a property, 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.
D.
For the purposes of any state program of grants or loans, including,
but not limited to, programs of the Department of Community Affairs
and the New Jersey Housing and Mortgage Finance Agency, possession
of a property under this section shall be considered legal control
of the property.
E.
Lien priority.
(1)
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:
(a)
The City sought to obtain the necessary financing from the senior
lienholder, which declined to provide such financing on reasonable
terms;
(b)
The City sought to obtain a voluntary subordination from the
senior lienholder, which refused to provide such subordination; and
(c)
Lien priority is necessary in order to induce another lender
to provide financing on reasonable terms.
(2)
No lien authorized by the Court shall take effect unless recorded
with the Clerk of Atlantic County.
F.
Where the City has designated a qualified rehabilitation entity to
act on its behalf, the qualified rehabilitation entity shall provide
monthly reports to the public officer 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.
G.
The public officer 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 six months, and a statement setting forth the actions as it
plans to undertake consistent with the plan.
H.
Notwithstanding the granting of possession to the City, nothing in
this article 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. The granting of possession shall
not suspend any obligation the owner may have as of the date of the
granting of 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.
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
grant of possession, but no later than 30 calendar days after the
City of Somers Point 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 calendar days after
the City has filed said notice. 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.
B.
Any petition for reinstatement of the owner's control and possession
of the property 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 assurances 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 and reuse of the
property, as determined by the public officer, which payment shall
be placed in escrow with the Clerk of the Court, County of Atlantic,
pending disposition of the petition.
C.
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.
Prior to the court granting a petition on the part of the owner pursuant to § 169-95 of this article, 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 the owner.
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.
A.
The public officer, 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 and property
to a third party 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.
D.
The court may further authorize the City to sell the building and
property 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.
E.
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.
With respect to any eminent domain proceeding carried out under N.J.S.A.
55:19-56, the fair market value of the property shall be determined
as provided in N.J.S.A. 55:19-102, established on the basis of an
analysis which determines independently:
(1)
The cost to rehabilitate and reuse the property for such purpose
as is appropriate under existing planning and zoning regulations governing
its reuse or to demolish the existing property and construct a new
building on the site, including all costs ancillary to rehabilitation,
such as, but not limited to, marketing and legal costs;
(2)
The realistic market value of the reused property after rehabilitation
or new construction, taking into account the market conditions particular
to the neighborhood or subarea of the City in which the property is
located; and
(3)
The extent to which the cost exceeds or does not exceed the market
value after rehabilitation, or demolition and new construction, and
the extent to which any "as is" value of the property prior to rehabilitation
can be added to the cost of rehabilitation or demolition and new construction
without the resulting combined cost exceeding the market value as
separately determined.
B.
If the appraisal finds that the cost of rehabilitation or demolition
and new construction, as appropriate, exceeds the realistic market
value after rehabilitation or demolition and new construction, there
shall be a rebuttable presumption in all proceedings under this subsection
that the fair market value of the abandoned property is zero and that
no compensation is due the owner.
Any person who opposes, obstructs, resists, or interferes with a public officer, City enforcement officer, or any person designated by the public officer in the discharge of duties as provided in this article shall be liable to punishment as provided in Article II of Chapter 1 of the Somers Point Municipal Code, or as may be determined by a court of competent jurisdiction.