Modifies procedures for determination and payment of fair market value in distressed municipalities; concerns real property that is abandoned, vacant, or subject to unpaid taxes.*
What changed between versions
The power to acquire vacant or abandoned property is now limited to 'distressed municipalities' rather than all municipalities. A distressed municipality is defined as one with a municipal revitalization index distress score of 45 or greater, determined by the Department of Community Affairs, and remains classified as distressed for three years after receiving that score even if it later falls below the threshold.
New subsection 3(d) clarifies that nothing in the act supersedes or limits summary actions to foreclose mortgages on vacant and abandoned properties under P.L.2012, c.70 or the New Jersey Foreclosure Fairness Act (P.L.2009, c.296).
The bill's short title changed from 'An Act permitting municipalities to acquire certain real property' to 'An Act concerning acquisition of certain real property by certain distressed municipalities, including procedures for determination and payment of fair market value,' reflecting the narrowed scope and new procedural focus.
New definition of 'distressed municipality' added to Section 2: a municipality with a municipal revitalization index distress score of 45 or greater as determined by the Department of Community Affairs, considered distressed for three years regardless of whether the score later drops below 45.
New Section 4(a) establishes notice requirements before a distressed municipality can exercise eminent domain: must post intention in the official newspaper or on its website, send certified mail notice within 10 days to the owner of record, notify mortgagees and servicing organizations, and if the owner is unknown, post notice on the property. The notice must identify the property, owner, tax lot/block number, street address, and factual basis for the vacant or abandoned determination.
New Section 4(b) creates a challenge process: owners or lienholders may appeal the vacant/abandoned determination within 30 days of receiving certified notice (or 40 days from the date sent). Unknown owners have 40 days from publication or posting. Property is presumed vacant or abandoned unless the owner demonstrates otherwise through remediation or showing intent to remediate.
New Section 4(c) provides a safe harbor: if within 30 days of receiving notice the owner has remediated the conditions that caused the property to be determined vacant or abandoned, or has taken action indicative of intention to remediate in the municipality's good faith determination, the property shall not be considered vacant or abandoned.
