The NJSBA expresses concerns with S1149 (Ruiz)/A2877 (Dancer) regarding the registration for vacant and abandoned properties. This bill is well intended, but overlaps significantly with other statutes and regulations such that the passage of this particular legislation may cause confusion and ultimately complicate the true intent of this bill.
Municipalities have a mechanism imposed on a creditor or a local agent of the creditor the responsibility for the care, maintenance, security and upkeep of the exterior of the vacant and abandoned residential property. N.J.S. 40:48-2.12s. Lenders are also required to notify the mayor and municipal clerk of a pending foreclosure on a residential property and provide contact information for a representative of the creditor who is responsible for receiving complaints of property maintenance and code violations. N.J.S. 46:10B-51. Similar notification is required for the owner of a non-owner occupied residential property that has been taken over as a result of a sheriff’s sale or deed in lieu of foreclosure. N.J.S. 10B-51.1. Finally, the NJ Urban Redevelopment Act (N.J.S. 55:19-20, et seq.) and the Abandoned Properties Rehabilitation Act (N.J.S. 55:19-78, et seq.), both allow municipalities to classify and rehabilitate abandoned properties and place liens on realty. This allows municipalities to remediate vacant and abandoned properties without the need for a lender to take title.
For the reasons set forth above, the New Jersey State Bar Association urges you to vote no on this bill.