[HISTORY: Adopted by the Council of the City of Salem as indicated in article histories. Amendments noted where applicable.]
[Adopted 10-5-2020 by Ord. No. 20-11]
As used in this article, the following terms shall have the meanings indicated:
LIGHT REHABILITATION
Where the work performed is basic up keep such as window replacement, painting, priming, and carpentry.
MODERATE REHABILITATION
A project that does not include major systems or building envelope work as described for a substantial rehab.
SUBSTANTIAL REHABILITATION
Work performed that is considered substantial rehabilitation (gut rehab) and is required to comply with Energy Star® standards. A substantial rehab is defined as a project that includes the replacement and/or improvement of all the major systems of the building, including its envelope. The building envelope is defined as the air barrier and thermal barrier separating exterior from interior space. For substantial rehab projects, this could include either removing materials down to the studs or structural masonry on one side of the exterior walls and subsequently improving the building envelope to meet the whole-building energy performance levels for the project type, or creating a new thermal and air barrier around the building that allows the project to achieve building energy performance levels for the project type.
A. 
The Salem City Commerce Department has established tier levels that will be defined by the definitions of rehabilitation provided in the New Jersey RREM program for City-owned residential properties. The Commerce Department will evaluate each property on a case by case basis and visually assess the tier level of rehabilitation determined for each residential property. The Commerce Department has established the following tier levels: Tier 1 for substantial rehabilitation, Tier 2 for moderate rehabilitation, and Tier 3 for light rehabilitation. Each residential property will be placed into a tier level based on the anticipated level of rehabilitation work that will be needed. Each tier level will have its own established starting bid for the residential unit. Properties that are assigned as Tier 1, substantial rehabilitation, shall start with a minimum bid of $2,000; Tier 2, moderate rehabilitation shall start with a minimum bid of $4,000; and Tier 3, light rehabilitation, shall start with a minimum bid of $6,000. The tiers and definitions herein do not constitute the entirety of work to be performed by the purchaser of the property, but are intended to set an objective standard for minimum bids. Purchasers that are required through the bid process to rehabilitate the properties, shall rehabilitate the properties in accordance with property maintenance, construction and building codes, zoning requirements and any other law governing the same.
B. 
Any residential property that will begin with a starting bid that is not defined by this article must be approved by a two thirds majority vote of Salem City Council. This article has established the minimum bid for City-owned residential property that is in need of rehabilitation with an existing structure and does not include commercial, industrial property, lots without an existing structure or properties sold to tax exempt entities, such as the county, state, U.S. government or instrumentalities thereof, or where otherwise permitted by private sale or under the Redevelopment and Housing Law.
The governing body shall be prohibited from authorizing or approving the sale or transfer of municipal property to any person, partnership corporation, professional association, limited liability company or other taxable entity unless the Tax Collector shall certify that the purchaser, transferee, or any partner, shareholders in any corporation or principal or party in interest in any entity shall be free from monetary obligation owing to the City by way of municipal taxes, fees, water and sewer charges, assessments, judgments or any other indebtedness created by law.
The governing body shall be prohibited from authorizing or approving the sale or transfer of municipal property to any person, partnership, corporation, professional association, limited liability company or other taxable entity unless the Code Enforcement Official shall certify that the purchaser, transferee or any partner, shareholders in any corporation or principal or party in interest in any entity shall be free from violation of any property maintenance code, Uniform Construction Code, zoning ordinance, vacant property registration ordinance or any other regulation or ordinance regarding property that the person or entity owns in the City of Salem.
Notice of the requirements of §§ 41-3 and 41-4 of this chapter shall be provided in the advertisement for public sale and generally in any other transfer. Transferee shall execute an ownership disclosure statement and affidavit attesting to the absence of any liability to the City or violations as set forth in §§ 41-3 and 41-4 above at the time of the sale.