By Amy Batista, Special Writer
HIGHTSTOWN — New regulations have been set for abandoned and vacant properties.
The Borough Council unanimously voted to adopt an ordinance on June 15 that defines standards for registering and maintaining such properties.
“It took us a while to get to this point,” resident Eugene Sarafin said. “Congratulations. Thank you all.”
He said he hopes the borough can get banks to abide by the new rules.
The New Jersey Legislature enacted a new law in August 2014 authorizing municipal governments to pass such an ordinance. According to the ordinance, mortgage foreclosures often result in the abandonment and neglect of residential properties.
A creditor filing a summons and complaint in an action to foreclose on a residential property within the borough will be immediately responsible for the care, maintenance, security and upkeep of the exterior of the property after the property becomes vacant and abandoned, according to the ordinance.
When a creditor is located out-of-state, the creditor will be responsible for appointing an in-state representative or agent to act on the creditor’s behalf, according to ordinance.
The initial registration fee for each vacant and abandoned property will be $500. The fee for the first renewal will be $1,500 and the fee for the second annual renewal will be $3,000. The fee for any subsequent annual renewal beyond the second renewal will be $5,000, according to the ordinance.
A creditor who is found by the municipal court or by any other court to be in violation of the ordinance will be subject to a fine of $1,500 for each day of the violation, according to the ordinance.
Keith Kahn, president of the Enchantment Homeowner’s Association, asked the council if the ordinance included the additional language he proposed at a previous meeting.
Borough Attorney Frederick Raffetto said, “The language, which would read when a vacant or abandoned home lies within a development to be maintained by a Homeowner’s Association, the creditor shall be responsible for normal monthly maintenance fees of the home.”
Mr. Raffetto said the new legislation does not authorize the language that was proposed.
“There is no provision in the state legislation to require the payment of maintenance fees,” he said.
He said “maintenance fees“ is a generic term that encompasses a lot more than keeping up the exterior of the units and usually includes the operating expenses associated with the homeowner association.
“I feel that if the borough were to incorporate this it would be overturned,” he said, adding that there are other remedies available to homeowner associations and suggesting that Mr. Kahn check the by-laws.
Mr. Kahn said the homeowner association has liens on certain properties but the banks that own the properties in foreclosure take everything and leave nothing left for the association.
“It doesn’t work out well for us,” he said. “The rest of the homeowners are forced to increase their monthly payments to make up for it.”
Mr. Raffetto suggested contacting state legislators to express these concerns.
“There is pending legislation right now,“ Councilwoman Susan Bluth said. “There is a pending bill in the Assembly and a companion bill in the Senate. If the unit is in foreclosure, the bank can file an expedite process and in the event that the bank does not file that motion the homeowner association can then force the bank to pay the association.”
She said that she has already reached out to Sen. Linda Greenstein.
“I suggest you do the same,” she said to Mr. Kahn.
