§ 224-19. Title; definitions; creditor responsibility; notice; violations and penalties.

A. 

Title. The title of this § 224-19 shall be "Vacant and abandoned residential properties on which a summons and complaint of foreclosure has been filed."

B. 

Definitions. The following words and terms, whenever used in this § 224-19, shall have the respective meanings herein assigned to them and shall be construed to include the plurals of these words. Words and terms in this § 224-19 which are defined elsewhere in the Code of the Borough of Fanwood are consistent in definition.

CREDITOR

(1) 

Any entity or person located in-state or out-of-state initiating, serving or filing a summons and complaint of foreclosure against a residential property located within the Borough, whether or not the residential property is "vacant and abandoned" as defined in this § 224-19; and

(2) 

Consistent with Section 3 of P.L. 2008, c.86, a state chartered bank, savings bank, savings and loan association or any credit union, any person required to be licensed under the provisions of the New Jersey Residential Mortgage Lending Act, any entity acting on behalf of the creditor named in the debt obligation, including, but not limited to, servicers, and any person or entity required to file quarterly reports with the New Jersey Department of Banking and Insurance (DOBI) consistent with Section 15 of the Mortgage Stabilization and Relief Act, P.L. 2008, c. 127 (N.J.S.A. 46:10B-49).

VACANT AND ABANDONED

(1) 

Consistent with Section 1 of P.L. 2010, c.70 (N.J.S.A. 2A:50-73), residential property shall be deemed "Vacant and Abandoned" if a notice of violation has been issued for the property pursuant to § 224-19.3 of this article and Subsection b. of Section 1 of P.L. 2014, c. 35.

(2) 

Where a notice of violation has not been issued pursuant to Subsection D of this article or Subsection b. of Section 1 of P.L. 2014, c.35, residential property shall be deemed vacant and abandoned where a mortgaged property is not occupied by a mortgagor or tenant as evidenced by a lease agreement entered into prior to the service of a notice of intention to commence foreclosure according to Section 4 of the Fair Foreclosure Act, P.L. 1995, c.244, and at least two of the following conditions exist:

(a) 

Overgrown or neglected vegetation;

(b) 

Accumulation of newspapers, circulars, flyers or mail;

(c) 

Disconnected gas, electric, or water utility services;

(d) 

Accumulation of hazardous, noxious, or unhealthy substances or materials;

(e) 

Accumulation of junk, litter, trash or debris;

(f) 

Absence of window treatments such as blinds, curtains or shutters;

(g) 

Absence of furnishings and personal items;

(h) 

Statements of neighbors, delivery persons, or government employees indicating that the residence is vacant and abandoned;

(i) 

Windows or entrances that are boarded up or closed off, or multiple windowpanes that are damaged, broken and unrepaired;

(j) 

Doors that are smashed through, broken off, unhinged, or continuously unlocked;

(k) 

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;

(l) 

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;

(m) 

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;

(n) 

A written statement issued by any mortgagor expressing the clear intent of all mortgagors to abandon the property;

(o) 

Any other reasonable indicia of abandonment.

(3) 

Residential property shall not be deemed vacant and abandoned under this § 224-19 where there is:

(a) 

An unoccupied building which is undergoing construction, renovation, or rehabilitation that is proceeding diligently to completion, and the building is in compliance with all applicable ordinances, codes, regulations, and statutes;

(b) 

A building occupied on a seasonal basis, but otherwise secure; or

(c) 

A building that is secure, but is the subject of a probate action, action to quiet title, or other ownership dispute.

C. 

Creditor responsibility for vacant and abandoned residential properties.

(1) 

A creditor filing a summons and complaint in an action to foreclose on a residential property within the Borough shall be responsible for the care, maintenance, security and upkeep of the exterior of the property immediately upon the property becoming vacant and abandoned as defined in this § 224-19, whether that occurs before or after the filing of the creditor's foreclosure action and whether the filing of the foreclosure action occurs before or after the effective date of this § 224-19.

(2) 

Where a creditor is located out-of-state, the creditor shall appoint an in-State representative or agent to act on the creditor's behalf for the purpose of satisfying the requirements of this § 224-19.

(3) 

A creditor serving a summons and complaint in an action to foreclose on a mortgage on residential property located within the Borough, whether or not such property is vacant and abandoned, shall, within 10 days of serving the summons and complaint, provide written notice to the Borough Clerk that a summons and complaint in an action to foreclose on a mortgage has been filed against the subject property. 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 Borough Clerk. If the creditor is located out-of-state, the notice shall also contain the full name and contact information of the creditor's in-state representative or agent as appointed pursuant to Subsection C(2) above, who shall be responsible for the care, maintenance, security, and upkeep of the exterior of the property if it becomes vacant and abandoned as defined in this § 224-19.

D. 

Notice.

(1) 

Any public officer designated by the Borough or authorized municipal official responsible for the administration of any property maintenance or public nuisance code shall be authorized to issue a notice to a creditor that has filed a summons and complaint in an action to foreclose on a residential property within the Borough, if the public officer determines that the creditor has violated this article by failing to provide for the care, maintenance, security, and upkeep of the exterior of the property. Where a creditor is located out-of-state, the notice shall be issued to his or her representative or agent that has been identified by the creditor pursuant to Subsection C of this article and the Save New Jersey Homes Act of 2008.

(2) 

The notice referenced in Subsection D(1) of this section shall require the creditor to correct the violation(s) 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.

(3) 

The issuance of a notice pursuant to this Subsection D shall constitute proof that a residential property is vacant and abandoned for the purposes of this article.

E. 

Violations and penalties.

(1) 

A creditor subject to this § 224-19 that is found by the municipal court of the Borough, 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 this § 224-19 shall be subject to a fine of $1,500 for each day of the violation. Any fines imposed pursuant to this Subsection E(1) shall commence 31 days following the creditor's receipt of the notice, except where 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.

(2) 

An out-of-state creditor subject to this § 224-19 that is found by the municipal court of the Borough, or by any other court of competent jurisdiction, to be in violation of the requirement to appoint an in-state representative or agent 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) for providing notice to the Municipal Clerk that a summons and complaint in an action to foreclose on a mortgage has been served.

(3) 

No less than 20% of any money collected by the Borough pursuant to this § 224-19 shall be utilized by the Borough for municipal code enforcement purposes.

(4) 

If the Borough expends public funds in order to abate a nuisance or correct a violation on a residential property for which the creditor was given notice pursuant to the provisions of this § 224-19 but failed to abate the nuisance or correct the violation as directed, the Borough shall have the same recourse against the creditor as it would have against the title owner of the property, including but not limited to the recourse provided under Section 23 of P.L.2003, c.210 (N.J.S.A. 55:19-100).