[Adopted 11-10-2009 by Ord. No. 09-034; amended in its entirety 7-29-2014 by Ord. No.
14-034]
The Director of the Division of Community Improvements, as public
officer designated by the Mayor pursuant to N.J.S.A. 55:19-80, is
hereby directed to identify abandoned properties within the municipality,
place said properties on an abandoned property list established as
provided in Section 36 of P.L. 1996, c. 62 (N.J.S.A. 55:19-55), as
amended by Section 28 of P.L. 2003, c. 210, and provide such notices
and carry out such other tasks as are required to effectuate an abandoned
property list as provided by law.
The abandoned property list shall apply to the City of Paterson
as a whole.
The Director of the Division of Community Improvements, designated
by the Mayor as the public officer, shall carry out the responsibilities
established by this article and shall have all the related responsibilities
and powers provided by law.
The public officer shall provide a report to the Mayor and Municipal
Council every six months with respect to the number and location of
properties on the abandoned property list, the status of those properties,
and any actions taken by the municipality or by any qualified rehabilitation
entity designated pursuant to the authority granted the public officer
with respect to any property on the list or any other abandoned property
within the City of Paterson.
For purposes of this article, the following terms are defined
as set forth herein:
Includes any property that is determined to be abandoned
pursuant to the Abandoned Properties Rehabilitation Act, N.J.S.A.
55:19-78.
Includes any person or entity holding a note, mortgage or
other interest secured by the building or any part thereof.
Includes the holder or holders to the title of an abandoned
property.
Includes any building or structure and the land appurtenant
thereto.
Includes the person designated by the municipality pursuant
to N.J.S.A. 40:48-2.5 or any other officer of the municipality qualified
to carry out the responsibilities set forth in the Abandoned Property
Rehabilitation Act and designated by the Mayor.
Includes any entity organized and authorized to do business
under the State of New Jersey which shall have as one of its purposes
the construction or rehabilitation of residential or nonresidential
buildings, the provisions 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 set forth in N.J.S.A. 55:19-78 et seq., to carry out the
rehabilitation of vacant buildings in urban areas.
The City of Paterson may direct the public officer to identify
abandoned properties for the purpose of establishing an abandoned
property list throughout the City. Each abandoned property so identified
shall include the block and lot, the name of the owner of record,
the street address of the lot, and the basis for the determination
that the property is abandoned.
A.
The public officer shall establish and maintain a list of abandoned properties, to be known as the "Abandoned Property List." The City of Paterson may add properties to the 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, as set forth in § 157-36.
B.
Any interested party may request that a property be included on the
abandoned property list following that procedure set forth in N.J.S.A.
55:19-105.
A.
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 an 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 six-month period;
(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 determination by the public officer pursuant to this section;
(3)
At least one installment of property taxes remains unpaid and delinquent
on that property in accordance with N.J.S.A. 54:4-1 et seq., as of
the date of determination of the public officer pursuant to this section;
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 City 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 have
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.
Exceptions.
(1)
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 buildings
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.
(2)
A property used on a seasonal basis shall be abandoned only if it
meets any two of the additional criteria set forth in N.J.S.A. 55:19-81.
A.
The public officer shall identify abandoned properties within the
City of Paterson 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 the 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 Paterson has purchased or taken assignment from the
City of a tax sale certificate which has been placed on the abandoned
list may be removed if the owner of the certificate pays all municipal
taxes and liens due on the property within 30 days after the property
is placed on the list; provided, however, that if the owner and 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.
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 Paterson, which
publication shall include 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 notice 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(d). 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 or posted
notice shall indicate the factual basis for the public officer's finding
that the property is abandoned, 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 Passaic 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 Paterson 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.
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 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, the public
officer shall schedule a hearing for redetermination of the matter.
Any property included on the list shall be presumed to be an abandoned
property unless the owner, through his 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 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 reasons
therefor.
E.
The property owner may challenge an adverse determination of an appeal with the public officer pursuant to Subsection D of this section by instituting, in accordance with the New Jersey Court Rules, a summary trial proceedings in the Superior Court, Passaic County. Such action shall be instituted within 20 days of the date of 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 on
appeal not to be abandoned and may, in his discretion, remove properties
from said list whenever he deems such removal appropriate under the
circumstances.
G.
The abandoned property list shall become effective, and the City
of Paterson shall have the right to pursue any legal remedy with respect
to the 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.
A.
An owner may request removal of his or her property from the abandoned
properties list prior to the 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. 55:19-54 and by posting cash or a bond to cover
the cost of any environmental cleanup required on that 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.
(2)
By demonstrating to the satisfaction of both the public officer and
the City Council 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
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 property owner.
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 required a remediation of
any known or suspected or threatened 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., or on the
90th day following the expiration of that time of appeal or final
determination on an appeal.
B.
The City of Paterson may, at its option, require that the sale of
tax sale certificates 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. 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 the 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. 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. The tax sale certificate purchaser,
assignee or transferee, with the authority of the City of Paterson,
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 works shall
be commenced, however, until proof of adequate liability insurance
and an indemnification agreement, holding the City of Paterson harmless,
has been filed with the public officer.
C.
If the City of Paterson acquired 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
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 has elected to perform that remediation itself; it shall
be required to post bond in favor of the City 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 Paterson, 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, 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 the cost shall be filed and recorded
as a lien by the entity incurring the cost with the Passaic County
Clerk.
E.
The clearance, development, redevelopment, or repair of the 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.
A.
The City of Paterson 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 advice and consent of the 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 the City's plans and regulations;
commitments by the bidder to rehabilitate or otherwise reuse the property,
consistent with the City's plans and regulations;
(2)
Commitments by the bidder to take action to foreclose on the tax
lien by a date certain; and
(3)
Such other criteria as the public officer, with the advice and consent
of the 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 advice and consent of the 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 advice and consent of the 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 public officer, with advice and consent of 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 forfeited 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 his or her 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 of Paterson 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 Paterson acquires
a tax sale certificate for a property on the abandoned property list
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 Paterson 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 N.J.S.A. 54:5-157(b).
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 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. 55:19-36, 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 remediated in full.
A.
If an entity other than the City of Paterson 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.
(2)
The owner of the certificates takes action to initiate foreclosure
proceedings within six months after the property is eligible for foreclosure
pursuant to either N.J.S.A. 54:5-86(a) or (b), as appropriate, and
diligently pursues foreclosure proceedings in a timely fashion thereafter.
B.
A determination that a property is abandoned 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 the
purposes of municipal zoning or land use regulation.
C.
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 N.J.S.A. 54:5-86(b), the public officer or the Tax Collector shall,
in a timely fashion, provide the requestor 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 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 Paterson
may be brought by the City in the Superior Court, Passaic County.
If the Court shall find that the property is abandoned and that the
owner or party in interest has failed to submit and initiate a rehabilitation
plan, then the Court may authorize the City to take possession and
control of the property and to develop its own rehabilitation plan
for the property.
B.
Where the City has been granted possession and control, the City
may commence and maintain those 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 pursuant to N.J.S.A. 55:19-92.
C.
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
that such funding within the initial six-month period shall be deemed
clear evidence that the owner has failed to take any action to further
rehabilitation of the property.
D.
An owner may defend against a complaint filed pursuant to N.J.S.A.
55:19-84 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.
E.
Any plan submitted by an owner to defend against a complaint shall
be submitted within 60 days after the complaint has been filed, unless
the court provides the owner with an extension of time for good cause
shown. A plan submitted by an owner pursuant to this section shall
include, but not be limited to:
(1)
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;
(2)
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;
(3)
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
(4)
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.
F.
Where 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 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 quarterly reports
to the public officer on its activities and progress toward rehabilitation
and reuse the property.
G.
If an owner is unsuccessful in defending against a complaint filed
pursuant to N.J.S.A. 55:19-84, the mortgage holder or lienholder may
seek to be designated in possession of the property by submitting
a plan and posting bond meeting the same condition as set forth in
N.J.S.A. 55:19-87. The plan must be submitted within 60 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's or lienholder's
plan, it shall designate that party to be in possession of the property
for purposes of ensuring its rehabilitation.
H.
The mortgage holder or lienholder, as the case may be, shall provide
quarterly reports to the Court and the public officer on its activities
and progress toward rehabilitation and reuse of the property. 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.
I.
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 attorney's 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.
J.
If no mortgage holder or lienholder meets the conditions of N.J.S.A.
55:19-88, then the City may 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.
A.
The public officer, with advice and consent of the City Council,
may designate a qualified rehabilitation entity for the purpose of
exercising the City's rights where that designation will further the
rehabilitation or reuse of the property consistent with the City's
plans and objectives.
B.
Regardless of whether the City exercises its rights directly or the
public officer designates a qualified rehabilitation entity pursuant
to this section, while in possession of a property, the City shall
maintain, safeguard, and maintain insurance on the 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.
The Court may approve the borrowing of funds by the City of Paterson
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:
(1)
The City sought to obtain the necessary financing from the senior
lienholder which declined to provide such financing on reasonable
terms.
(2)
The City sought to obtain a voluntary subordination from the senior
lienholder which refused to provide such subordination.
(3)
Lien priority is necessary in order to induce another lender to provide
financing on reasonable terms. No lien authorized by the Court shall
take effect unless recorded with the Clerk of Passaic County.
D.
Where the City has designated a qualified rehabilitation entity to
act on its behalf, the qualified rehabilitation entity shall provide
quarterly 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 the City to 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.
E.
The City of Paterson shall file notice of completion with the Court,
and shall also service 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.
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 the sale in escrow with the
Court.
C.
The Court may authorize the City of Paterson to sell the 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 provision 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.
D.
Upon approval by the Court, the City shall sell the property on such
terms and at such price as the Court shall approve, and may place
the proceeds of the sale in escrow with the Court. The Court shall
order a distribution of the proceeds of the sale after paying Court
costs in the order of priority set forth in N.J.S.A. 55:19-97.
E.
With 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.
[Added 5-12-2015 by Ord.
No. 15-026; amended 12-20-2016 by Ord. No. 16-087]
A.
A lienholder, mortgage holder or mortgagee (collectively "creditor"),
serving a summons and complaint in an action to foreclose on a mortgage
on residential property, shall, within 10 days of serving the summons
and complaint, notify the Municipal Clerk that a summons and complaint
in an action to foreclose on a mortgage has been filed against this
property.
B.
The notice shall contain the name and contact information for the
representative of the creditor, who is responsible for receiving complaints
of property maintenance and code violations, may contain information
about more than one property, and shall be provided by mail or electronic
communication, at the discretion of the Municipal Clerk. The notice
shall also include the street address lot and block number of the
property and the full name and contact information of an individual
located within the State of New Jersey who is authorized to accept
service on behalf of the creditor and who shall be immediately responsible
for the care, maintenance, security, and upkeep of the exterior of
the vacant and abandoned residential property. The Municipal Clerk
shall provide a copy of the notice to the Public Officer.
C.
In the event the creditor that has served a summons and complaint
in an action to foreclose on a residential property is located out
of state, the notice shall also contain the full name and contact
information of an in-state representative or agent who shall be responsible
for the care, maintenance, security, and upkeep of the exterior of
the abandoned property.
D.
Any creditor that has initiated a foreclosure proceeding on any residential
property which is pending in Superior Court shall provide to the Municipal
Clerk, within 30 days, a listing of all residential properties in
the City of Paterson for which the creditor has foreclosure action
pending by street address and lot and block number. The Municipal
Clerk shall provide a copy of the listing to the Public Officer.
E.
By designating an authorized agent under the provisions of this section,
the owner consents to receive any and all notices of code violations
concerning the registered vacant property and all process in any court
proceeding or administrative enforcement proceeding brought to enforce
code provisions concerning the registered building by service of the
notice or process on the authorized agent. Any owner who has designated
an authorized agent under the provisions of this section shall be
deemed to consent to the continuation of the agent's designation for
the purposes of this section until the owner notifies the City of
Paterson in writing of a change of the authorized agent.
F.
Any creditor who fails to designate a registered agent under the
provisions of this section shall further be deemed to consent to receive,
by posting on the building, in plain view, and by service of notice
at the last known address of the owner of the property on record within
the City by regular and certified mail, any and all notices of code
violations and all process in an administrative proceeding brought
to enforce code provisions concerning the property.
G.
A creditor located in the State of New Jersey may designate itself
as an agent or as the entity responsible for maintaining the property.
[Added 5-12-2015 by Ord.
No. 15-026; amended 12-20-2016 by Ord. No. 16-087]
A.
A public officer, or any other local official responsible for administration
of any property maintenance or public nuisance code, is authorized
to issue a notice to the creditor filing the summons and complaint
in an action to foreclose, if the public officer or other authorized
municipal official determines that the creditor has violated the ordinance
by failing to provide for the care, maintenance, security, and upkeep
of the exterior of the property. Such notice shall require the person
or entity to correct the violation within 30 days of receipt of the
notice, or within 10 days of receipt of the notice if the violation
presents an imminent threat to public health and safety.
B.
A creditor found by the municipal court of the municipality in which
the property subject to the ordinance is located, or by any other
court of competent jurisdiction, to be in violation of the requirement
to correct a care, maintenance, security, or upkeep violation cited
in a notice issued pursuant to the ordinance shall be subject to a
fine of $1,500 for each day of the violation. Any fines imposed pursuant
to this subsection shall commence 31 days following receipt of the
notice, except if the violation presents an imminent risk to public
health and safety, in which case any fines shall commence 11 days
following receipt of the notice.
C.
An out-of-state creditor found by the municipal court of the municipality
in which the property subject to the ordinance is located, 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 N.J.S.A. 46:10B-51 for providing notice to the
municipal clerk that a summons and complaint in an action to foreclose
on a mortgage has been served.
[Added 12-20-2016 by Ord.
No. 16-087; amended 10-25-2022 by Ord. No. 22-071]
A.
"Creditor" means 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.
B.
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), must 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
C.
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 within 10 days
of the change in that information on a form provided by the City.
D.
The creditor filing a summons and complaint in an action to foreclose shall, if the registered property becomes vacant or abandoned in accordance with the definition in the City of Paterson's Ordinance § 271-47, et. seq., after the property is initially registered with the municipality, update the property registration with the municipality to reflect the change in the property's status.
E.
A creditor located out-of-state shall be responsible for appointing
an in-state representative or agent to act for the foreclosing creditor.
F.
A creditor, filing a summons and complaint in an action to foreclose
on a property, that is or becomes vacant or abandoned, is required
to adhere to all City of Paterson Ordinances including but not limited
to § 247-48, et. seq. The creditor shall have a continuing
duty to notify the City of any changes to information contained in
the registration.
G.
A property shall be considered vacant or abandoned if 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:
(1)
Overgrown or neglected vegetation;
(2)
The accumulation of newspapers, circulars, flyers, or mail on the
property;
(3)
Disconnected gas, electric, or water utility services to the property;
(4)
The accumulation of hazardous, noxious, or unhealthy substances or
materials on the property;
(5)
The accumulation of junk, litter, trash, or debris on the property;
(6)
The absence of window treatments such as blinds, curtains, or shutters;
(7)
The absence of furnishings and personal items;
(8)
Statements of neighbors, delivery persons, or government employees
indicating that the property is vacant or abandoned;
(9)
Windows or entrances to the property that are boarded up or closed
off, or multiple windowpanes that are damaged, broken, and unrepaired;
(10)
Doors to the property that are smashed through, broken off,
unhinged, or continuously unlocked;
(11)
A risk to the health, safety, or welfare of the public or any
adjoining or adjacent property owners due to acts of vandalism, loitering,
criminal conduct, or the physical destruction or deterioration of
the property;
(12)
An uncorrected violation of a municipal building, housing, or
similar code during the preceding year, or an order by municipal authorities
declaring the property to be unfit for occupancy and to remain vacant
and unoccupied;
(13)
The mortgagee or other authorized party has secured or winterized
the property due to the property being deemed vacant and unprotected
or in danger of freezing;
(14)
A written statement issued by a mortgagor expressing the clear
intent of all mortgagors to abandon the property; or
(15)
Any other reasonable indicia of abandonment.
H.
All property registrations are valid for one year from the date of
registration. The initial registration fee is $500 and must accompany
the registration form as supplied by the City of Paterson. Subsequent
annual registrations fees are $5. Registration fees and renewal fees
will not be prorated or refunded.
I.
Once the property is no longer vacant or is sold or otherwise transferred,
the owner must provide proof of sale, transfer, or occupancy to the
enforcement authority within 30 days of sale, transfer or occupancy.
J.
The governing body shall authorize a public officer, designated or
appointed pursuant to P.L.1942, c. 112 (N.J.S.A. 40:48-2.3 et seq.),
or any other local official responsible for administration of any
property maintenance or public nuisance code to issue a notice to
the creditor filing the summons and complaint in an action to foreclose,
if the public officer or other authorized municipal official determines
that the creditor has violated the ordinance. In the case of a violation
for failure to provide care, maintenance, security, and upkeep of
the exterior of vacant or abandoned property, such notice shall require
the person or entity to correct the violation within 30 days of receipt
of the notice, or within 10 days of receipt of the notice if the violation
presents an imminent threat to public health and safety.
K.
Violations.
(1)
An out-of-state creditor subject to an ordinance adopted pursuant to subsection A. of this section found by the municipal court of the municipality in which the property subject to the ordinance is located, 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.
(2)
A creditor subject to this section found by the municipal court of the municipality in which the property subject to the ordinance is located, or by any other court of competent jurisdiction, to be in violation, excluding only a violation addressed by Subsection K(1) of this subsection, of the ordinance shall be subject to a fine of $1,500 for each day of the violation. Any fines imposed pursuant to this subsection shall commence 31 days following receipt of the notice of violation, except if the violation presents an imminent risk to public health and safety, in which case any fines shall commence 11 days following receipt of the notice.
[Added 12-20-2016 by Ord.
No. 16-087]
A.
Properties subject to the requirements of this article must be maintained
in accordance with all applicable federal, state and local laws, ordinances,
rules and regulations. The owner, creditor or local property management
company, as appropriate, must inspect the property once a month for
the duration of the vacancy or foreclosure.
B.
In addition to, and not in lieu of, meeting all other applicable
federal, state, and local laws, ordinances, rules and regulations:
(1)
Properties subject to the requirements of this article shall be kept
free of accumulated snow and ice, weeds, dry brush, dead vegetation,
trash, junk, debris, building materials, unregistered vehicles, any
accumulation of newspapers, circulars, flyers, notices (except those
required by law), and discarded personal items including but not limited
to furniture, clothing, large and small appliances, printed material
or any other items giving the appearance that the property is vacant.
(2)
Properties subject to the requirements of this article shall be maintained
free of graffiti, tagging or similar markings. In the event that any
graffiti, tagging or similar markings are placed on the property,
it shall either be removed or painted over with an exterior-grade
paint matching the color of the portion of the structure where the
graffiti, tagging or similar marking was placed.
(3)
Front yards, rear yards, and side yards of properties subject to
the requirements of this article shall be landscaped and maintained
to neighborhood standards. Landscaping and maintenance shall include,
but is not limited to, care of grass, mulch, decorative rock, artificial
turf/sod specifically designed for residential or commercial installation,
or other ground cover, bushes, shrubs, hedges, trees or similar plantings,
removal or repair of gravel, broken concrete, asphalt, decomposed
granite, plastic sheeting, mulch, indoor-outdoor carpet or any similar
material, in addition to regular watering, irrigation, cutting, pruning
and mowing of required vegetation and removal of all trimmings.
[Added 12-20-2016 by Ord.
No. 16-087]
Any person who violates any provision of this article shall,
upon conviction thereof, be punished by a fine not exceeding $1,000,
by imprisonment for a term not exceeding 90 days or by a period of
community service for not more than 90 days, or any combination thereof.
A separate offense shall be deemed committed on each day during or
on which a violation occurs or continues.
