Legislation would allow distressed municipalities to acquire certain vacant or abandoned properties through purchase or eminent domain to address blight and unpaid taxes.
TRENTON, N.J. — A New Jersey Senate committee has advanced legislation that would give distressed municipalities new authority to acquire vacant, abandoned, and tax-delinquent properties through purchase or eminent domain as part of efforts to combat neighborhood blight and encourage redevelopment.
The Senate State Government, Wagering, Tourism & Historic Preservation Committee voted Thursday to report Assembly Bill A794 (1R) favorably, moving the measure forward in the legislative process.
Key Points
• A794 would allow distressed municipalities to acquire certain vacant or abandoned properties through purchase or eminent domain.
• The bill applies to municipalities with a Municipal Revitalization Index distress score of 45 or higher.
• Property owners and lienholders would be granted notice and appeal rights before a property could be acquired.
New Powers for Distressed Municipalities
Under the legislation, qualifying municipalities would be permitted to obtain title to properties deemed vacant, abandoned, or subject to unpaid taxes without relying solely on existing procedures under New Jersey’s abandoned property and tax foreclosure laws.
The bill defines a distressed municipality as one with a Municipal Revitalization Index distress score of 45 or greater. Once designated, a municipality would retain that status for three years even if its score later falls below the threshold.
Municipalities acquiring a property under the measure would be allowed to deduct unpaid taxes and municipal liens from any compensation otherwise owed to the property owner.
How Properties Would Be Classified
The legislation establishes a new standard for determining whether a property is vacant or abandoned. A property would need to meet at least four of 14 specified indicators of abandonment or vacancy before qualifying under the law.
Certain properties would be excluded from the designation. Those exemptions include buildings actively undergoing construction or rehabilitation, seasonal properties that remain secure, and buildings involved in probate proceedings, title disputes, or other ownership conflicts.
Lawmakers noted that the proposal would not alter existing foreclosure procedures available under New Jersey law for vacant and abandoned properties.
Notice and Appeal Process Included
The bill requires municipalities to notify property owners, lienholders, mortgage holders, and other interested parties before taking action. Notice would be published in an official newspaper or on a municipal website and mailed to affected parties.
Owners and lienholders would have an opportunity to challenge a property’s designation as vacant or abandoned. Appeals generally would need to be filed within 30 days of receiving certified notice or within 40 days of the notice being sent.
If an owner demonstrates that conditions have been corrected or that meaningful efforts are underway to rehabilitate the property, the municipality could not proceed with treating the property as vacant or abandoned under the bill.
Assembly Bill A794, as reported by the committee, is identical to Senate Bill 725, which was also amended and advanced by the committee on the same day.
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