[HISTORY: Adopted by the Township Council of the Township
of West Milford 3-15-2023 by Ord. No. 2023-006. Amendments noted
where applicable.]
It is the purpose and intent of the Council to establish a process
to address the deterioration, crime, and decline in value of Township
neighborhoods caused by property with foreclosure mortgages located
within the Township, and to identify, regulate, limit and reduce the
number of these properties located within the Township. It has been
determined that there exist within the Township structures and vacant
lots which are or may become in the future substandard with respect
to structural integrity, equipment or maintenance or, further, that
such conditions, including but not limited to structural deterioration;
lack of maintenance of exterior premises and vacant lots; infestation;
existence of fire hazards, constitute a menace to the health, safety,
welfare and reasonable comfort of the citizens and inhabitants of
the Township. It is further found and declared that, by reason of
lack of maintenance and ensuing progressive deterioration, certain
properties have the further effect of creating blighting conditions
and that, if the same are not curtailed and removed, the aforesaid
conditions will grow and spread and will necessitate in time the expenditure
of large amounts of public funds to correct and eliminate the same
and that, by reason of timely regulations and restrictions as herein
contained, the growth of blight may be prevented and the neighborhood
and property values thereby maintained, the desirability and amenities
of dwellings and neighborhoods enhanced, and the public health, safety
and welfare protected and fostered. It is the Council's further
intent to establish a registration program as a mechanism to help
protect neighborhoods from becoming blighted through the lack of adequate
maintenance of properties that are in foreclosure or foreclosed, and
to provide a mechanism to avert foreclosure actions through timely
intervention, education, or counseling of property owners.
The following words, terms, and phrases, when used in this chapter,
shall have the meanings ascribed to them in this section, except where
the context clearly indicates a different meaning:
Twelve months from the date of the first action that requires
registration, as determined by the Township, or its designee, and
every subsequent 12 months the property is registrable. The date of
the initial registration may be different than the date of the first
action that required registration.
Any law enforcement officer, building official, zoning inspector,
code enforcement officer, fire inspector, building inspector, or other
person authorized by the Township to enforce the applicable code(s).
Any condition that on its own, or combined with other conditions
present, would lead a reasonable person to believe that the property
is vacant. Such conditions may include, but are not limited to: overgrown
and/or dead vegetation; past-due utility notices and/or disconnected
utilities; accumulation of trash junk or debris; abandoned vehicles,
auto parts and/or materials; the absence of furnishings and/or personal
items consistent with habitation or occupancy; the presence of an
unsanitary, stagnant swimming pool; the accumulation of newspapers,
circulars, flyers and/or mail; statements by neighbors, passersby,
delivery agents or government agents; and/or the presence of boards
over doors, windows or other openings in violation of applicable code.
The legal process by which a mortgagee, or other lien holder,
terminates or attempts to terminate a property owner's equitable
right of redemption to obtain legal and equitable title to the real
property pledged as security for a debt or the real property subject
to the lien. This definition shall include, but is not limited to,
a complaint and summons filed with respect to foreclosure on a mortgage,
a lis pendens filed against it by the lender holding a mortgage on
the property, a deed in lieu of foreclosure, sale to the mortgagee
or lien holder, certificate of title and all other processes, activities
and actions, by whatever name, associated with the described process.
The legal process is not concluded until the property obtained by
the mortgagee, lien holder, or their designee, by certificate of title,
or any other means, is sold to a non-related bona fide purchaser in
an arm's length transaction to satisfy the debt or lien.
The creditor, including but not limited to trustees; mortgage
servicing companies; lenders in a mortgage agreement; any agent, servant,
or employee of the creditor; any successor in interest; or any assignee
of the creditor's rights, interests or obligations under the
mortgage agreement; or any other person or entity with the legal right
to foreclose on the real property, excluding governmental entities
as assignee or owner.
Every person, entity, or mortgagee who, alone or severally
with others, has legal or equitable title to any real property as
defined by this chapter; has legal care, charge, or control of any
such property; is in possession or control of any such property; and/or
is vested with possession or control of any such property. The property
manager shall not be considered the owner.
Any party designated by the owner as responsible for inspecting,
maintaining and securing the property as required in this chapter.
Any residential or commercial land and/or buildings, leasehold
improvements and anything affixed to the land, or portion thereof
identified by a property parcel identification number, located in
the Township limits.
Any real property located in the Township, whether vacant
or occupied, that is subject to an ongoing foreclosure action by the
mortgagee or trustee, has been the subject of a foreclosure action
by a mortgagee or trustee and a judgement has been entered, or has
been the subject of a foreclosure sale where the title was transferred
to the beneficiary of a mortgage involved in the foreclosure and any
properties transferred under a deed in lieu of foreclosure/sale. The
designation of a "foreclosure" property as "registrable" shall remain
in place until such time as the property is sold to a non-related
bona fide purchaser in an arm's length transaction or the foreclosure
action has been dismissed.
A web-based electronic database of searchable real property
records, used by the Township to allow mortgagees the opportunity
to register properties and pay applicable fees as required in this
chapter.
Any utility and/or service that is essential for a building
to be habitable and/or perform a service necessary to comply with
all Township codes. This includes, but is not limited to, electrical,
gas, water, sewer, lawn maintenance, pool maintenance, and snow removal.
Any parcel of land in the Township that contains any building
or structure that is not lawfully occupied or inhabited by human beings.
A property also shall be deemed vacant if it is occupied without a
valid, unexpired certificate of occupancy or other written authorization
for occupancy as may be required by applicable laws.
This chapter applies to foreclosing or foreclosed property within
the Township.
A.
Pursuant to this section and as set forth within the provisions of Chapter 285, the Township, or its designee, shall establish a registry cataloging each registrable property within the Township, containing the information required by this chapter.
B.
No less than 20% of any money collected shall be utilized by the
municipality for municipal code enforcement purposes.
A.
Any mortgagee who holds a mortgage on real property located within
the Township shall perform an inspection of the property upon the
filing of a foreclosure action or any evidence of an existing foreclosure
action or lien holder has obtained ownership of the real property
by the mortgagee.
B.
Property inspected pursuant to Subsection A above that remains in foreclosure shall be inspected every 30 days by the mortgagee or mortgagee's designee. If an inspection shows a change in the property's occupancy status the mortgagee shall, within 10 days of that inspection, update the occupancy status of the property registration.
C.
Within 10 days of the date any mortgagee files a foreclosure action,
the mortgagee shall register the real property with the Township registry,
and, at the time of registration, indicate whether the property is
vacant, and if so shall designate in writing a property manager to
inspect, maintain and secure the real property subject to the mortgage
in foreclosure when legally possible. A separate registration is required
for each registrable property.
D.
Initial registration pursuant to this section shall contain at a
minimum the name of the mortgagee, the mailing address of the mortgagee,
email address, telephone number and name of the property manager and
said person's address, email address, and telephone number, regardless
of whether it is occupied or vacant.
E.
At the time of initial registration, each registrant shall pay a nonrefundable annual registration fee as set forth in Chapter 135, Fees and Costs, for each occupied registrable property and for each vacant property. Subsequent nonrefundable annual registrations of properties and fees are due within 10 days of the expiration of the previous registration. Said fees shall be used to offset the costs of: 1) registration and registration enforcement; 2) code enforcement and mitigation related to foreclosure properties; 3) post-closing counseling and foreclosure intervention limited to owner-occupied persons in default, which may not include cash and mortgage modification assistance; and 4) for any related purposes as may be adopted in the policy set forth in this chapter. Said fees shall be deposited to a special account in the Township's department dedicated to the cost of implementation and enforcement of this chapter, and fulfilling the purpose and intent of this chapter. None of the funds provided for in this section shall be utilized for the legal defense of foreclosure actions.
F.
If the mortgage and/or servicing on a property is sold or transferred,
the new mortgagee is subject to all the terms of this chapter. Within
10 days of the transfer, the new mortgagee shall register the property
or update the existing registration. The previous mortgagee(s) will
not be released from the responsibility of paying all previous unpaid
fees, fines, and penalties accrued during that mortgagee's involvement
with the registrable property.
G.
If the mortgagee sells or transfers the registrable property in a
non-arm's length transaction to a related entity or person, the
transferee is subject to all the terms of this chapter. Within 10
days of the transfer, the transferee shall register the property or
update the existing registration. Any and all previous unpaid fees,
fines, and penalties, regardless of who the mortgagee was at the time
registration was required, including but not limited to unregistered
periods during the foreclosure process, are the responsibility of
the transferee and are due and payable with the updated registration.
The previous mortgagee will not be released from the responsibility
of paying all previous unpaid fees, fines, and penalties accrued during
that mortgagee's involvement with the registrable property.
H.
If the foreclosing or foreclosed property is not registered, or the
registration fee is not paid within 30 days of when the registration
or renewal is required pursuant to this section, a late fee equivalent
to 10% of the annual registration fee shall be charged for every thirty-day
period, or portion thereof, the property is not registered and shall
be due and payable with the registration.
I.
This section shall also apply to properties that have been the subject
of a foreclosure sale where title is transferred to the mortgagee
as well as any properties transferred to the mortgagee under a deed
in lieu of foreclosure or by any other legal means.
J.
Properties subject to this section shall remain subject to the annual
registration requirement, and the inspection, security, and maintenance
standards of this section as long as the property remains registrable.
K.
Failure of the mortgagee and/or property owner of record to properly
register or to modify the registration to reflect a change of circumstances
as required by this chapter is a violation of this chapter and shall
be subject to enforcement by any of the enforcement means available
to the Township.
L.
If any property is in violation of this chapter the Township may
take the necessary action to ensure compliance with and/or place a
lien on the property for the cost of the outstanding obligation and
any additional cost incurred to bring the property into compliance.
M.
Registration of foreclosure property does not alleviate the mortgagee
and/or owner from obtaining all required licenses, permits and inspections
required by applicable code or state statutes. Acquisition of required
licenses, permits and inspections or registration of rental property
does not alleviate the requirement for the property to be registered
under this section. Mortgagee and/or owner is expected to update the
status of the property in the event of a mortgagee managed rental.
A.
Properties subject to this chapter shall be maintained in a secure
manner so as not to be accessible to unauthorized persons.
B.
A "secure manner" shall include, but not be limited to, the closure
and locking of windows, doors, gates and other openings of such size
that may allow a child to access the interior of the property or structure.
Broken windows, doors, gates, and other openings of such size that
may allow a child to access the interior of the property or structure
must be repaired. Broken windows shall be secured by reglazing of
the window.
C.
If a property is registrable, and the property has become vacant
or blighted, a property manager shall be designated by the mortgagee
or owner to perform the work necessary to bring the property into
compliance with the applicable code(s), and the property manager must
perform regular inspections to verify compliance with the requirements
of this chapter, and any other applicable laws.
D.
In addition to the above, the property is required to be secured
in accordance with the applicable code(s) of the Township.
E.
When a property subject to this chapter becomes vacant, it shall
be posted with the name and twenty-four-hour contact telephone number
of the property manager. The property manager shall be available to
be contacted by the Township Monday through Friday between 9:00 a.m.
and 5:00 p.m., legal holidays excepted. The sign shall be placed in
a window facing the street and shall be visible from the street. The
posting shall be no less than 18 inches by 24 inches and shall be
of a font that is legible from a distance of 45 feet. The posting
shall contain the following language with supporting information:
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THIS PROPERTY IS MANAGED BY .
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AND IS INSPECTED ON A REGULAR BASIS.
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THE PROPERTY MANAGER CAN BE CONTACTED
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BY TELEPHONE AT
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OR BY EMAIL AT .
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F.
The posting required in Subsection E above shall be placed on the interior of a window facing the street to the front of the property so that it is visible from the street, or secured to the exterior of the building/structure facing the street to the front of the property so that it is visible from the street or, if no such area exists, on a stake of sufficient size to support the posting in a location that is at all times visible from the street to the front of the property but not readily accessible to vandals. Exterior posting shall be constructed of and printed with weather-resistant materials.
G.
Failure of the mortgagee and/or property owner of record to properly
inspect and secure a property subject to this chapter, and post and
maintain the signage noted in this section, is a violation and shall
be subject to enforcement by any of the enforcement means available
to the Township. The Township may take the necessary action to ensure
compliance with this section, and recover costs and expenses in support
thereof.
The provisions of this chapter are cumulative with and in addition
to other available remedies. Nothing contained in this chapter shall
prohibit the Township from collecting on fees, fines, and penalties
in any lawful manner; or enforcing its codes by any other means, including,
but not limited to, injunction, abatement, or as otherwise provided
by law or ordinance.
All registrable property is at risk of being a public nuisance
and if vacant or blighted can constitute a public nuisance, the abatement
of which pursuant to the police power is hereby declared to be necessary
for the health, welfare, and safety of the residents of the Township.
A.
If the enforcement officer has reason to believe that a property
subject to the provisions of this chapter is posing a serious threat
to the public health, safety, and welfare, the code enforcement officer
may temporarily secure the property at the expense of the mortgagee
or owner, and may bring the violations before the code enforcement,
Council or special magistrate as soon as possible to address the conditions
of the property. Nothing herein shall limit the Township from abating
any nuisance or unsafe condition by any other legal means available
to it.
B.
The Sheriff, code enforcement, Council or special magistrate shall
have the authority to require the mortgagee or owner affected by this
section to implement additional maintenance and/or security measures
including, but not limited to, securing any and all doors, windows
or other openings, employment of an on-site security guard or other
measures as may be reasonably required to help prevent further decline
of the property.
C.
If there is a finding that the condition of the property is posing
a serious threat to the public health, safety, and welfare, then the
Sheriff, code enforcement, Council or special magistrate may direct
the Township to abate the violations and charge the mortgagee or owner
with the cost of the abatement.
D.
If the mortgagee or owner does not reimburse the Township for the
cost of temporarily securing the property, or of any abatement directed
by the Sheriff, code enforcement officer, code enforcement, Council
or special magistrate, within 30 days of the Township sending the
mortgagee or owner the invoice, then the Township may lien the property
with such cost, along with an administrative fee as determined in
the Township's fee ordinance to recover the administrative personnel
services. In addition to filing a lien, the Township may pursue financial
penalties against the mortgagee or owner.
E.
The Township may contract with an entity to implement this chapter,
and, if so, any reference to the enforcement officer herein shall
include the entity the Township contracts with for that purpose.
Whoever opposes, obstructs or resists any enforcement officer
or any person authorized by the enforcement office in the discharge
of duties as provided in this chapter shall be punishable as provided
in the applicable code(s) or a court of competent jurisdiction.
Any enforcement officer or any person authorized by the Township
to enforce the sections here within shall be immune from prosecution,
civil or criminal, for reasonable, good-faith entry upon real property
while in the discharge of duties imposed by this chapter.
Unless otherwise provided for in this chapter, a violation of
this chapter is declared unlawful.
A.
Per P.L. 2021, Chapter 444, N.J.S.A. 40:48-2.12s3g(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 10-day
period set forth in paragraph (1) of subsection a. of section 17 of
P.L. 2008, c. 127 (C. 46:10B-51) or paragraph (1) of subsection a.
of section 2 of P.L. 2021, c. 444 (C. 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."
B.
Per P.L. 2021, Chapter 444, N.J.S.A. 40:48-2.12s3g(2): "A 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, excluding only
a violation addressed by paragraph (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 paragraph 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."
Registration fees and penalties outlined in this chapter may
be modified as an amendment to this chapter, passed and adopted by
the Council.
All ordinances or parts of ordinances in conflict herewith are
hereby repealed and replaced.
