This does not mean that the public officer can arbitrarily pick and choose from among the abandoned properties in the community for the list. > V X M N O P Q R S T U 5@ W1 bjbj22 X X V T k
l j Common forms of unclaimed property are savings and checking accounts, traveler's checks, unredeemed money orders or gift certificates, insurance . The public officer and tax collector are notified and given the opportunity to submit information to the court. There may be five or six vacant single family homes on the same block, which should be rehabilitated at the same time in order to stabilize the block. Legal authority for municipalities to use eminent domain and reconvey property to a private entity is granted by a number of different laws, each of which applies to a different set of circumstances:
The Local Redevelopment and Housing Law, N.J.S.A.40A-12A-8(c) authorizes the taking of property in redevelopment areas for the purpose of carrying out plans for the physical, social and economic development of the community;
The Fair Housing Act, N.J.S.A.52:27D-325, authorizes the taking of property for the construction or rehabilitation of low and moderate income housing or conversion to low and moderate income housing; and
The Urban Redevelopment Act, N.J.S.A.55:19-56(c)(2) authorizes the taking of individual properties for clearance, development, redevelopment or repair of abandoned properties. Recognizing this reality, the law provides that the abandoned property list shall become effective [] at such time as any one property has been placed on the list. (N.J.S.A.55:19-102.h.). Therefore, the owner must, in addition, post a bond equal to 125 percent of the amount determined by the public officer to be the projected cost of rehabilitation. You can explore additional available newsletters here. A change in ownership as a result of foreclosure while a receiver is in possession does not affect the status of the receivership. This section first provides a short overview of the tax foreclosure process under New Jersey law, and then
discusses specific provisions of the law that target abandoned properties. If justified by the volume of boarding activity, the city may want to establish an in-house boarding crew to deal with the citys properties, while retaining a private contractor, who is available 24/7 to board privately owned properties and for emergencies. Different property types in the same location may be subject to different market conditions. If the owner fails to do so, the municipality can step in and correct, or abate, the conditions itself. While advanced technology is not required to conduct an abandoned property strategy, the larger and more complex the strategy, and the more abandoned properties involved, the more valuable it becomes. The process is divided into three steps, as follows:
Authorizing the list
Creating the list
Providing notice and offering owners the opportunity to appeal inclusion on the list
The process is depicted in graphic form in Chart 2.2. To announce a plan to rehabilitate 200 houses, when funds are only realistically available for 50, is a self-destructive exercise. The starting point for the list is the definition of abandoned property. Under provisions of the Abandoned Properties Rehabilitation Act, municipalities can also go after other assets of the property owner to recover these costs in many cases (see Section 4.3 below). 5
1.3 Turning abandoned properties into opportunities 7
2. In municipalities operating under a Faulkner Act strong mayor form, the public officer is designated by the mayor and the ordinance should not include provisions for designation of the public officer. The order must specify:
The actions that the owner must take to abate the nuisance. The law recognizes an important city planning principle; namely, that a building does not have to be architecturally or historically distinguished in itself to be worthy of preservation. In so doing, however, the public officer must carefully weigh the impact of allowing the nuisance conditions to continue against the good faith effort of the owner. In order to recoup the value of unpaid property taxes, the statute requires that each municipality must hold an annual tax sale of properties in arrears on their property taxes. The law, loosely modeled after a law enacted by Maryland for the city of Baltimore, gives the municipality broad discretion to establish standards and procedures for special tax sales in order to achieve that goal. A court could also potentially dismiss a complaint brought by an entity designated by the municipality if it found (perhaps as a result of a motion by the owner or lienholder) that the entity bringing the complaint was not qualified to do so. A property used on a seasonal basis is deemed to be abandoned only if it meets any TWO of the Secondary Criteria listed in Part 2 above. Since some properties are likely to be in tax arrears, a special tax sale and/or accelerated foreclosure by a CDC purchasing tax liens may be an important part of the strategy, but the municipality should plan to use spot blight eminent domain to capture key properties that are not eligible for tax foreclosure. 31. a. The list consists of those properties that the public officer determines to be abandoned, based on the statutory definition. Creating a property information system
An abandoned property list can be used by the municipality to track the location of abandoned properties in the municipality and the steps being taken to address the problem. Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement (updated 4/4/2023), Privacy Policy and Cookie Statement, and Your Privacy Choices and Rights (updated 7/1/2023). Similarly, in the case of a moderate rehabilitation, which might take less than six months altogether, the actual time period between issuing the Notice of Completion and actual completion would be substantially less. Sec. The municipality may provide municipal funds to a receiver to carry out the purpose of the receivership, which is deemed a public purpose. In addition to being skilled in property management and rehabilitation, the receiver should have
a detailed knowledge of potential public sector financial resources, both with respect to the capital costs of restoring the building, and the needs of tenants that may be financially affected by the receivership. As soon as the receiver posts bond or other surety, it is authorized to exercise all of the powers of receivership, except that it shall not undertake major non-emergent repairs until the court has approved the receivers plan. To respond efficiently to community complaints. Three Bills Introduced in New Jersey Could Improve Property Tax Process An owner or party in interest has 30 days from the service of the order to seek an injunction barring the public officer from carrying out the order. The court may waive the bond requirement for good cause, and may set additional requirements as conditions of reinstatement to protect the interests of the tenants and/or the neighborhood. Indeed, the tax arrears could become another point of leverage over the owner. Buyers appear at the tax sale, and purchase the tax sale certificates by paying the back taxes to the municipality. Securing, demolishing and/or stabilizing vacant buildings
Vacant buildings can be more difficult to deal with than vacant lots. The second part deals with eminent domain, particularly spot blight eminent domain, while the third deals briefly with other means by which a municipality or CDC can acquire property. NATURE OF LIENAMOUNTDATE ENTEREDSTATUS
ABANDONED PROPERTY BACKGROUND INFORMATION FORM PAGE 3 OF 4
5. As with any legal procedure affecting property, the action takes place through a series of steps designed to ensure that parties receive notice, and have the opportunity to challenge the process. Once this information has been assembled for all of the properties, the public officer must then comply with the notice requirements of the law (see page ___). NJ Enacts Law Governing Foreclosed Vacant and Abandoned Properties As long as the tax lien holder has carried out certain obligations, a property is not considered abandoned property for purposes of the various legal remedies included in the Abandoned Properties Rehabilitation Act (N.J.S.A. Missouri and Illinois have enacted statutes specifically providing for possession of vacant properties, similar to the New Jersey statute. Agree to assume all legal obligations, including repayment of debt, incurred by the receiver. Once the court issues an order of possession, the entity has full control over the property, including the ability to borrow funds for rehabilitation, obtain construction permits, and the like. The order requires the owner to make the repairs or take other action within a reasonable time set by the public officer. To take action to repair, vacate or demolish properties, if the owner fails to do so. As noted earlier, it is triggered by the adoption of a municipal ordinance designating the public officer and granting her the powers set forth in state law. Box 1357Edison, NJ 08818-1357Contact Us, Statewide Legal Assistance HotlineCall or apply online for free legal assistance:1-888-LSNJ-LAW (1-888-576-5529)www.lsnjlawhotline.org, Use of this website signifies your agreement to our Terms of Use and Privacy Policy. In both cases, the complaint must show that the owner failed to take adequate and timely action. All rights reserved (About Us). The tools that can be used by local governments and others to manage vacant properties are summarized in Table 3.2 on the following page. Sec. Pemberton, NJ 08068 Public Outreach Events List Claims Search for Unclaimed Property The Claim Process Upload Claim Documentation Check your Claim Status Claim Documentation Claim FAQ Holder Reporting Submit a Report 29. The municipality can seek recovery of its costs for abating the nuisance by placing a lien on the property. Clifton - Abandoned, Abandoned These steps are shown in graphic form in Chart 2.1. The resources devoted to the strategy must be proportionate to the goals of the strategy. Few strategies can be carried out by a municipality or by a CDC without others being actively involved. This helps raise money for the municipal budget but can cause other problems, particularly with abandoned properties. Department of the Treasury - The Official Web Site for The State of New Pay or deposit with the court all funds needed to meet the obligations of the receivership. The receiver must maintain the building in good order, implement the plan approved by the court, and apply all revenues from the property to the extent necessary to implement the plan. The court may also impose additional requirements to protect the interests of the tenants and the residents of the neighborhood (N.J.S.A.2A:42-137 and 138). The standards are set forth in N.J.S.A.55:19-102. In many cases, however, success will depend on help from the municipality, either through direct financial assistance such as HOME or CDBG funds, or indirect financial assistance such as tax abatement. The families who may be willing to put their money into fixing up scattered abandoned houses where the other houses around them are in good condition will not put money into a similar house if it is on a block where half or more of the structures are vacant. The latter official should assist the tax collector to frame the bid criteria, and should be responsible for certifying the information provided by potential bidders to determine which entities are qualified to bid at the sale, since that information will fall outside the technical expertise of most tax collectors. This is likely to require proof either that the property is in fact legally occupied or that rehabilitation of the property is under way. Valuation of properties for spot blight takings
The United States Constitution, as well as New Jersey law, requires that all takings of property under eminent domain be at fair market value. (A CDC holding a tax lien on an abandoned property should investigate whether the owner would be willing to make a gift of the property to the CDC, rather than go through the sometimes time-consuming tax foreclosure process, known as a grant of deed in lieu of foreclosure. 13 Han, supra note 5, at 9. . If it will cost more to fix up an abandoned house than it will be worth after rehabilitation, incentives are likely to be needed to motivate families to invest their own money in the job. 5 RECEIVERSHIP AND POSSESSION
Receivership is a powerful tool both for restoring abandoned properties to productive use and for preserving troubled rental property. Where the goal is to preserve a valuable building at risk of demolition by neglect, the goal is to gain speedy control of the building in order to restore it to productive use before it is too late. In either case, the court must find that the entity meets the standards for a 'qualified rehabilitation entity' as defined in the law before actually granting the entity possession of the property. Where the statute reads 'municipality', it refers to the municipal government, or any qualified rehabilitation entity designated by the municipality. L.2003,c.210,s.30. In cities around the United States which have had success in dealing with abandoned properties, from Atlanta to Minneapolis, the partnerships that have been forged between all of these players are the critical element that has made the difference. See Section 6.1 of this guidebook for a further discussion of the use of abandoned property inventories. (The length of time from the point an entity decides to bring an action for possession, and notifies the owner, until the order is likely to be issued, will vary widely, depending largely on whether the owner, and/or a lienholder, chooses to contest the action by proposing to carry out the rehabilitation themselves. 6 PUTTING IT ALL TOGETHER: USING THE TOOLKIT
TO CARRY OUT AN ABANDONED PROPERTY STRATEGY
Up to this point, we have described a variety of tools that are available to local governments, and in some cases to private entities such as CDCs, to tackle abandoned and problem properties in their cities, towns and neighborhoods. The city should establish and enact by ordinance minimum technical standards to govern all boarding by the city, as well as by any private owner of a vacant building. The law establishes four secondary criteria, which combined with the six month threshold, result in the building meeting the definition of abandoned property. While S3967 aims to refine the criteria for tax appeals, S3968 provides flexibility in judgment application, and S3972 tackles the timing of property assessments. The unclaimed property law is set forth in Title 46 of the New Jersey Statutes at N.J.S.A. ; . With the enactment of the possession provisions of the Abandoned Properties Rehabilitation Act, New Jersey joined the growing number of states that recognize vacant property as a subject for receivership. The use of the term negotiated in the process of selling to a non-profit entity means that the sale does not have to be competitive, such as an auction or open property listing. New Jersey Revised Statutes Section 55:19-105 (2021) - Justia Law One neighborhood may have abandoned single family houses, but not rental properties. The Multifamily Housing Preservation and Receivership Act also calls upon the Department of Community Affairs to establish a Preservation Loan Revolving Fund, for the purpose of making loans and grants to receivers in situations where private funds are inadequate to address the condition of the property. Ultimately, each community, its local officials, CDC leadership, and others, must frame the strategy that best addresses their particular needs. N.J.S.A.55:19-56(a) permits municipalities to require assignees to perform and conclude any rehabilitation or repairs necessary to remove the property from the abandoned property list [] and to post a bond in favor of the municipality to guarantee the rehabilitation or repair of the property as a condition of assignment of a tax sale certificate. Cessation of utilities, including gas and electric service and cessation of water service and draining the water lines. New Jersey - National Association of Unclaimed Property Administrators While state law does not give municipalities explicit authority to enact ordinances imposing fees or other obligations on property owners to address nuisance conditions, the Ridgefield decision indicates that such ordinances may be found to be within the municipal police power. Difficult as it may be, the rewards of a successful receivership are substantial. ; > j &( JD JD `D ( D D ' ' ' ' ' ' ' $ * R `, ' f ' b b D D : ' K K K ` b : D f D ' K ' K $ K o Y f D >D S .