A 794 — 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.

A794 1R [First Reprint] ASSEMBLY, No.

  CURRENT VERSION OF TEXT      IntroducedAs Pendingreported Technicalby Reviewthe byAssembly LegislativeHousing Counsel.Committee on May 14, 2026, with amendments.

            2.  2.    As used in P.L.    , c.     (C.         ) (pending before the Legislature as this bill):

          "Abandoned" or "vacant" means, with respect to real property:

          (1) (1)   that at least four of the following conditions exist with respect to the property:

          (a) (a)   overgrown or neglected vegetation;

          (b) (b)   the accumulation of newspapers, circulars, flyers, or mail on the property;

          (c) (c)   disconnected gas, electric, or water utility services to the property;

          (d)(d)   the accumulation of hazardous, noxious, or unhealthy substances or materials on the property;

          (e) (e)   the accumulation of junk, litter, trash, or debris on the property;

          (f) (f)   the absence of window treatments such as blinds, curtains, or shutters;

          (g) (g)   the absence of furnishings and personal items;

          (h) (h)   statements of neighbors, delivery persons, representatives of an association of a planned real estate development, or government employees indicating that the residence is vacant and abandoned;

          (i)  (i)    windows or entrances to the property that are boarded up or closed off or multiple window panes that are damaged, broken, and unrepaired;

          (j)  (j)    doors to the property that are smashed through, broken off, unhinged, or continuously unlocked;

          (k) (k)   a risk to the health, safety, or welfare of the public, or any adjoining or adjacent property owners, exists due to acts of vandalism, loitering, criminal conduct, or the physical destruction or deterioration of the property;

          (l)  (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)(m)  a written statement issued by the most recent owner expressing a clear intent to abandon the property;

or           (n) (n)   any other reasonable indicia of abandonment.

          (2) (2)   Real property shall not be considered "abandoned" or "vacant," if at least one of the following conditions exists on the property:

          (a) (a)   a building is unoccupied, 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) (b)   a building is occupied on a seasonal basis, but otherwise secure;

or           (c) (c)   a building is secure, but is the subject of a probate action, action to quiet title, or other ownership dispute.

          "Distressed municipality" means a municipality that has a municipal revitalization index distress score of 501[50] 451 or greater, as determined by the Department of Community Affairs.

1A municipality shall be considered distressed for a period of three years after receiving a distress score of 45 or greater, regardless of if the municipality falls below a score of 45 within that three-year period.1             3.  3.    a.

          b.  b.    For real property acquired by a distressed municipality pursuant to subsection a.

       4.   1 Thisd. act shall take effect immediately.

 Nothing  in STATEMENTthis  section      This bill permits a distressed municipality to obtain title to real property that is vacant,intended abandoned, or subject to unpaidsupersede taxes by purchasing the property for the fair market value, or bylimit exercisinga thesummary municipality’saction power of eminent domain and acquiring title to theforeclose realmortgages propertyon pursuantvacant toand theabandoned "Eminentproperties Domain Act of 1971," P.L.1971, c.361 (C.20:3-1 et seq.), in lieu of acquiring title to the real property pursuant to thesection "Abandoned1 Properties Rehabilitation Act," (APRA) P.L.2003, c.210 (C.55:19-78 et seq.), the "tax sale law," R.S.54:5-1 et seq., and the In Rem Tax Foreclosure Act (1948), P.L.1948, c.96 (C.54:5-104.29 et seq.).  The bill defines a "distressed municipality" as a municipality with a municipal revitalization index distress score of 50P.L. or greater.

2012, c.70 (C.2A:50-73) or the "New Jersey Foreclosure Fairness Act," P.L.2009, c.296 (C.2A:50-69 et seq.).1        The14.   billa.         furtherIf specifies,a distressed municipality seeks to purchase a property for real propertymarket acquiredvalue by aexercising the distressed municipalitymunicipality's power of eminent domain pursuant to section 3 of P.L.    , c.     (C.         ) (pending before the bill,Legislature as this bill), the municipality isshall permittedpost its intention to subtractexercise this power in the amountofficial newspaper of anythe unpaidmunicipality taxesor andon municipalthe liensmunicipality’s fromInternet thewebsite, amountwhich thepublication municipalityshall wouldconstitute otherwisepublic benotice requiredand, towithin pay10 days after publication, shall send a notice, by certified mail, return receipt requested, and by regular mail, to the owner of record of the realvacant or abandoned property.  The published and mailed notices shall identify property indetermined compensation. to Additionally,be thevacant billor imposesabandoned certainsetting requirementforth onthe aowner distressedof municipalityrecord, if known, the municipalitytax islot unable,and afterblock makingnumber goodand faithstreet andaddress.  diligentThe efforts,municipality, toin locateconsultation with the ownertax ofcollector, realshall propertyalso subjectsend out a notice by regular mail to municipalany actionmortgagee, servicing organization, or property tax processing organization that receives a duplicate copy of the tax bill pursuant to thesubsection bill.d.

    of TheR.S.54:4-64.  billWhen providesthe owner of record is not known for a differentparticular definitionproperty and cannot be ascertained by the exercise of reasonable diligence by the termstax "abandoned"collector, ornotice "vacant"shall thannot isbe providedmailed but instead shall be posted on the property in the APRA. manner Underas provided in section 5 of P.L.1942, c.112 (C.40:48-2.7).  The mailed notice shall indicate the bill,factual basis for the termsmunicipality's "abandoned"finding orthat "vacant"the meansproperty realis vacant or abandoned property as that exhibitsterm atis leastdefined fourin section 2 of 14P.L.    qualifiers, indicatingc.     abandonment(C.         or) vacancy,(pending before the Legislature as specifiedthis inbill) specifying the bill. information     relied upon in making such finding.  The billnotice providesshall thatbe realindexed propertyby isthe notname "abandoned"of the owner as defendant and the name of the municipality as plaintiff, as though an action had been commenced by the municipality against the owner.       b.    An owner or "vacant"lienholder if,may onchallenge the property:determination of their property as vacant or abandoned pursuant to subsection a.

§ of therethis existssection anby unoccupiedappealing building,that determination to the municipality within 30 days of receipt of certified notice or 40 days from the date upon which isthe undergoingnotice construction,was renovation,sent.  An owner whose identity was not known to the municipality shall have 40 days from the date upon which notice was published or rehabilitationposted, thatwhichever is proceedinglater, diligentlyto challenge the determination of their property as vacant or abandoned property.  A property be presumed to completion,be andvacant or abandoned property unless the buildingowner, through the submission of an affidavit or certification by the property owner, can demonstrate that the property is innot compliancevacant withor allabandoned applicableby ordinances,remediating codes,conditions regulations,or andby statutes;showing intent to remediate the conditions that caused the property to be determined as vacant or abandoned.

§      therec.     isIf awithin building30 occupieddays onof areceipt seasonalof basis,certified butnotice otherwisethe secure;owner has remediated conditions that caused the property to be determined vacant or abandoned, or if in the municipality’s good faith determination has taken action indicative of intention to remediate, the real property shall not be considered vacant or abandoned.1        1[4.] 5.1     This act shall take effect immediately.

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