KEY STATUTES

     

Since 1989, the Network has worked with state legislators and other policy advocates to design legislation that revitalizes neighborhoods, protects homeowners and empowers municipalities to effectively address problem properties in their jurisdictions. Below you will find descriptions and links on key pieces of legislation that have proven critical to the stabilization of neighborhoods through New Jersey.

The Abandoned Properties Rehabilitation Act is intended to facilitate the efforts of municipalities and other appropriate entities to obtain control over abandoned properties and return them to productive use.  

The Urban Redevelopment Act created the New Jersey Redevelopment Authority to assist in the revitalization of Urban Properties while also establishing the abandoned property list. 

The Multifamily Preservation and Receivership Act provides a broader scope for use of receivership as a tool to preserve distressed properties, and clarifies the powers and responsibilities of the receiver, the circumstances under which properties under receivership can be sold, and the conditions under which the owner can obtain restoration of his or her rights. 

The Mortgage Relief & Stabilization Act created the Mortgage Stabilization Program and the Housing Assistance and Recovery Program.  It also imposed additional requirements on lender foreclosing mortgage and appropriated $40 million from the “Long Term Obligation and Capital Expenditure Fund.”  

The NJ Foreclosure Fairness Act strengthens protections to tenants and owners of residential properties facing foreclosure, clarifies forbearance provision in the Mortgage Stabilization and Relief Act, and modifies creditor liability for vacant properties in foreclosure.  

Nuisance Abatement Law establishes an administrative procedure by which municipalities in the person of the public officer can abate nuisance conditions on problem properties. Over and above the provisions of the statute, local officials also have recourse to the courts, particularly in emergency situations, to address nuisance conditions.

Out-of-State Creditor Law (formerly the Creditor Responsibility Law) allows municipalities to level daily fines against foreclosing creditors of residential property. Initial fines start at $2,500 per day for every day and out-of-state creditor fails to appoint an in-state point of contact for the municipality, and $1,500 thereafter for every day they fail to maintain the exterior of the property.  For in-state creditors, the $1,500 per day fine still applies for failure to maintain the exterior of the property.