[HISTORY: Adopted by the City Council of the City of Salem 7-17-2017 by Ord. No. 16-15. Amendments noted where applicable.]
The City declared the entire City in need of rehabilitation
due to the extent of the pattern of vacancy, abandonment and underutilization
of properties in the area. A program of rehabilitation may be expected
to prevent further deterioration and promote overall development of
the community. This chapter is intended to define programs and policies
that will enable the City to identify properties that can be sold
under an initiative of programs that will encourage the transfer and
rehabilitation of residential properties to responsible and invested
homeowners. It is the purpose of these initiatives, by encouraging
homeownership, to rebuild Salem's neighborhoods as thriving communities.
This chapter is enacted in accordance with the Five-Year Exemption
and Abatement Law, N.J.S.A. 40A:21-1 et seq., as amended; the Urban
Homesteading Act, N.J.S.A. 40A:12-31 et seq., as amended; the Redevelopment
Housing Law, N.J.S.A. 40A:12A-I et seq., as amended, and the Local
Lands and Buildings, N.J.S.A. 40A:12-1 et seq., as amended.
As used in this chapter, the following terms shall have the
following meanings unless the context clearly indicates that a different
meaning is intended:
All information required of the City of an applicant in order
make a determination regarding the sale of City-owned property.
The Department of Commerce and Development established by
ordinances of the City of Salem.
A structure or part thereof used for the manufacturing, processing
or assembling of material or manufactured products, or for research,
office, industrial, commercial, retail, recreational, hotel or motel
facilities, or warehousing purposes, or for any combination thereof.
The governing body must determine that said structure will tend to
maintain or provide gainful employment within the municipality, assist
in the economic development of the municipality, maintain or increase
the tax base of the municipality, and maintain or diversify or expand
commerce within the municipality. It shall not include any structure,
or part thereof, used or to be used by any business relocated from
another qualifying municipality.
An agreement between the City of Salem and an investor whereby
the investor agrees to purchase property from the City with the purpose
of rehabilitating it and reselling it to a buyer who will occupy the
property as a dwelling. The agreement may provide that the resale
of the property may be by purchase or lease-purchase and some percentage
allocated between purchase and lease purchase arrangements where an
Investor has purchased multiple properties.
Substantially ready for the intended use for which a building
or structure is constructed, improved or converted.
The provision of a commercial or industrial structure, a
new dwelling, or multiple dwelling, or the enlargement of the volume
of any such structure by more than 30%. However, it shall not mean
the conversion of an existing building or structure to another use.
The alteration or renovation of a nonresidential building
or structure, hotel or motel, or motor hotel or guesthouse, in such
a manner as to convert the building or structure from its previous
use to use as a dwelling or multiple dwelling.
When used with respect to abatement for dwellings or multiple
dwellings, only the cost or fair market value of direct labor and
materials used in improving a multiple dwelling, or of converting
another building or structure to a multiple dwelling, or of constructing
a dwelling, or of converting another building or structure to a dwelling.
The cost shall include any architectural, engineering, and contractors
fees associated therewith, as the owner of the property shall cause
to be certified to the governing body by an independent and qualified
architect after completion of the project.
A building or part of a building used, to be used, or held
for use as a home or residence, including accessory buildings located
on the same premises together with the land upon which such buildings
are erected and which may be necessary for the fair enjoyment of the
property, but it shall not mean any building or part of a building
defined as a multiple dwelling pursuant to the Hotel and Multiple
Dwelling Law, N.J.S.A. 55:13A-1 et seq.
The enforcing agency in any municipality designed to administer
and enforce the State Uniform Construction Code Act pursuant to Section
8 of P.L. 1975, c. 217 (N.J.S.A. 52:27D-126) and regulations promulgated
thereunder.
That portion of the Assessor's full and true value of
any improvement, conversion, or construction not regarded as increasing
the taxable value of a property pursuant to applicable state law.
A modernization, rehabilitation, renovation, alteration or
repair which produces a physical change in an existing building or
structure that improves the safety, sanitation, or attractiveness
of the building or structure as a place for human habitation or work
and which does not change its permanent use. In the case of a multiple
dwelling, it includes only improvements which affect common areas
or elements, or three or more dwelling units within the multiple dwelling.
In the case of a multiple dwelling or commercial or industrial structure,
it shall not include ordinary painting, repairs and replacement of
maintenance items, or an enlargement of the volume of an existing
structure by more than 30%. In no chase shall it include the repair
of fire or other damage to a property for which payment of a claim
was received by any person from an insurance company at any time during
the three-year period immediately preceding the filing of an application
for tax exemption and abatement.
Any residential property consisting of less than five dwelling
units, to which a municipality acquired through the In Rem Tax Foreclosure
Act (1948), P.L. 1948, c. 96 (N.J.S.A. 54:5-104.29 et seq).
A building or structure meeting the definition of "multiple
dwelling" set forth in the Hotel and Multiple Dwelling Law, N.J.S.A.
55:13A-1 et seq. It means for the purpose of improvement or construction
the general common elements and common elements of a condominium,
a cooperative, or a horizontal property regime.
The owners in fee of the property or a lesser estate therein,
a mortgagee or vendee in possession, an assignee of rents, receive,
executor, trustee, lessee, or any other person, firm or corporation,
directly or indirectly in control of a building, structure or real
property.
An applicant for a homestead who is at least 18 years of
age upon application.
A person who has been granted title to an in rem property
under conditions set forth in this Act.
The governmental entity designated to administer a homesteading
program.
The process to which title to in rem property is conveyed
by the City to an urban homesteader.
The Commerce Department shall serve as the City of Salem's
Homesteading Agency.
The Agency shall be permitted to administer the homesteading
program, as part of the City's Neighborhood Transformation Initiative
in accordance with this chapter.
A.
The City will identify vacant residential properties that are owned
by the City to be redeveloped, torn down and rebuilt and/or substantially
improved. Within 30 days of the enactment of this chapter, the Tax
Collector shall provide the homesteading agency with a certified list
of all in rem properties within the City. At least quarterly, the
Tax Collector shall update the certified list and report any changes
to the homesteading agency.
B.
The Homesteading Agency will publish a notice in the newspaper having
general circulation in the county in which the property which is suitable
for rehabilitation is available. The notice will contain: (1) that
certain property is available for acquisition; (2) that in order to
be considered eligible to acquire the property, applicants must fulfill
criteria set for the notice as established by the Homesteading Agency;
(3) the procedures for applying for an urban homestead and the deadline
for submitting an application. There shall be a second notice published
not less than two weeks before the deadline. Within 30 days after
the application deadline, the Homesteading Agency shall recommend
to the governing body the transfer of in rem property to a qualified
applicant who has demonstrated their ability to acquire the necessary
financial and technical resources to rehabilitate, own and manage
urban homestead property under the terms and conditions established
under the N.J.S.A. 40A:12-30 et seq. and any other terms and conditions
established by the Homesteading Agency.
C.
In order for an applicant to be considered eligible to purchase an in rem property pursuant to this act, an applicant shall demonstrate, to the satisfaction of the homesteading agency, that the applicant has the financial means to acquire the property. The Homesteading Agency will establish objective criteria for the selection of applicants. The applicant who proposes to purchase the property shall provide three independent appraisals of the proposed work to be completed in order to bring the property within compliance of applicable state and local codes. The appraisals shall detail the work to be performed and hours needed to complete the work. Any transfer shall be pursuant to a contract of sale that shall provide that the rehabilitation is intended for residential use and must be brought into and in conformity with all applicable state and local codes in the time frame set forth in Subsection D of this section. It is the intention of the Neighborhood Transformation Initiative to facilitate individual homeowners as end users of the properties. To achieve that end, the Salem City Commerce Department will provide assistance to inform applicants about USDA mortgage programs and other services that might be available to low-income end users, along with information for nonprofits and self-help grants.
D.
This program provides for the transfer, pursuant to a contract of
sale and rehabilitation between the municipality and the transferee
which shall provide:
(1)
That the transfer is for a nominal sum between $500 and $1,500 (as determined by the Homesteading Agency upon selection of the property to be transferred based upon size, condition and other criteria it may establish), plus settlement costs and appraisal costs as set forth in Subsection C above;
(2)
The rehabilitation shall commence and be completed within 18 months
and one six-month extension if agreed upon by the Homesteading Agency;
(3)
The property transferred is for residential use and must be brought
into and maintained in accordance with all state and local codes and
zoning regulations;
(4)
The applicant is responsible for all taxes, water and sewer from
the time they acquire the property;
(5)
The transfer is conditional and if the conditions of the program
are not met, the property shall revert to the City;
(6)
Representatives of the Urban Homesteading agency, the municipality,
and where state or federal assistance is involved, representatives
of state and federal governments shall have access to the property
during normal business hours for the purpose of inspecting for compliance
with the provisions of the program; and
(7)
The applicants who obtain property through this program shall agree
to participate in a program of homeowner education regarding the responsibilities
of homeownership such as budgeting, maintenance and quality of life
resources.
E.
All successful applicants may make an application under the Five
Year Abatement and Exemption Act, which information shall be provided
to the applicant at the time the application is made.
In addition to the Homesteading Program, as part of the City's
overall Neighborhood Transformation Initiative, the City, with input
of the Commerce Department, may transfer its vacant properties to
developers/investors who will agree to rehabilitate and resell residential
properties to owner/occupants. Such transfers may be made pursuant
to a redevelopment agreement or otherwise pursuant to the Local Lands
and Buildings Law with such conditions. Any transfer to an investor/developer
may be subject to a community benefit agreement that will require
an eighteen-month term for rehabilitation and resale or otherwise
place restrictions on the use of the property to carry out the purposes
of the Neighborhood Transformation Initiatives to promote individual
home ownership and ensure that a greater portion of the investment
results in home ownership
Should any provision of this chapter be deemed unlawful, the
remainder shall not be affected and shall remain in full force and
effect.
Within 30 days following the enactment of this chapter establishing
an Urban Homesteading program, the Clerk shall file a copy with the
Director of the Division of Local Government Services and the Director
of the Division of Housing and Development of the Department of Community
Affairs.
This chapter shall become effective upon publication after final
adoption as provided by law.
