ASSEMBLY HOUSING COMMITTEE

STATEMENT TO

ASSEMBLY, No. 5373

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 19, 2025

      The Assembly Housing Committee reports favorably and with committee amendments, Assembly Bill No. 5373.

      As amended, this bill permits a distressed municipality to obtain title to real property that is vacant, abandoned, or subject to unpaid taxes by purchasing the property for the fair market value, or by exercising the municipality’s power of eminent domain and acquiring title to the real property pursuant to the "Eminent 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 the "Abandoned 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 50 or greater.

      The bill further specifies, for real property acquired by a distressed municipality pursuant to the bill, the municipality is permitted to subtract the amount of any unpaid taxes and municipal liens from the amount the municipality would otherwise be required to pay to the owner of the real property in compensation.  Additionally, the bill imposes certain requirement on a distressed municipality if the municipality is unable, after making good faith and diligent efforts, to locate the owner of real property subject to municipal action pursuant to the bill.

      The bill provides a different definition of the terms "abandoned" or "vacant" than is provided in the APRA.  Under the bill, the terms "abandoned" or "vacant" means real property that exhibits at least four of 14 qualifiers indicating abandonment or vacancy, as specified in the bill. 

      The bill provides that real property is not "abandoned" or "vacant" if, on the property:

§ there exists an unoccupied building, 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;

§ there is a building occupied on a seasonal basis, but otherwise secure; or

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

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1)  limit the authority provided by the bill to distressed municipalities;

      (2)  define the term "distressed municipality" to mean a municipality that has a municipal revitalization index distress score of 50 or greater; and

      (3)  make corresponding changes to the title and synopsis.