New Jersey § 55:19-91

§ 55:19-91.

a. If a municipality has been granted possession of a property pursuant to section

12 of P.L.2003, c. 210 ( C.55:19-89 ), that municipality shall be deemed to have an ownership interest in the property

for the purpose of filing plans with public agencies and boards, seeking and obtaining

construction permits and other approvals, and submitting applications for financing

or other assistance to public or private entities. For the purposes of any State program of grants or loans, including but not limited

to programs of the Department of Community Affairs and the New Jersey Housing and

Mortgage Finance Agency, possession of a property under this section shall be considered

legal control of the property. Notwithstanding the granting of possession to a municipality, nothing in P.L.2003, c. 210 ( C.55:19-78 et al.) shall be deemed to relieve the owner of the property of any obligation the

owner or any other person may have for the payment of taxes or other municipal liens

and charges, or mortgages or liens to any party, whether those taxes, charges or liens

are incurred before or after the granting of possession. The granting of possession shall not suspend any obligation the owner may have as

of the date of the granting of possession for payment of any operating or maintenance

expense associated with the property, whether or not billed at the time of the granting

of possession. b. The court may approve the borrowing of funds by a municipality to rehabilitate

the property and may grant a lien or security interest with priority over all other

liens or mortgages other than municipal liens. Prior to granting this lien priority, the court shall find that (1) the municipality

sought to obtain the necessary financing from the senior lienholder, which declined

to provide such financing on reasonable terms; (2) the municipality sought to obtain

a voluntary subordination from the senior lienholder, which refused to provide such

subordination; and (3) lien priority is necessary in order to induce another lender

to provide financing on reasonable terms. No lien authorized by the court shall take effect unless recorded in the office of

the clerk of the county in which the property is located. For the purposes of this section, the cost of rehabilitation shall include reasonable

non-construction costs such as architectural fees or construction permit fees customarily

included in the financing of the rehabilitation of residential property. c. Where the municipality has been granted possession by the court in the name of

the municipality, the municipality may seek the approval of the court to assign its

rights to another entity, which approval shall be granted by the court when it finds

that: (1) the entity to which the municipality's rights will be assigned is a qualified

rehabilitation entity; and (2) the assignment will further the purposes of this section. d. Where a municipality has designated a qualified rehabilitation entity to act on

its behalf, the qualified rehabilitation entity shall provide quarterly reports to

the municipality on its activities and progress toward rehabilitation and reuse of

the property. The municipality or qualified rehabilitation entity, as the case may be, shall provide

such reports to the court as the court determines to be necessary. If the court finds that the municipality or its designee have failed to take diligent

action toward rehabilitation of the property within one year from the grant of possession,

then the court may request the municipality to designate another qualified rehabilitation

entity to exercise its rights, or if the municipality fails to do so, may terminate

the order of possession and return the property to its owner. e. The municipality

shall file a Notice of Completion with the court, and shall also serve a copy on the

owner and any mortgage holder or lien holder, at such time as the municipality has

determined that no more than six months remain to the anticipated date on which rehabilitation

will be complete. This notice shall include an affidavit of the public officer attesting that rehabilitation

can realistically be anticipated to be complete within that time period, and a statement

setting forth such actions as it plans to undertake to ensure that reuse of the property

takes place consistent with the plan.