New law increases towns' capability to manage vacant, foreclosed properties

Legislation that would permit towns to adopt ordinances to regulate the care, maintenance, security and upkeep for the exterior of vacant and abandoned residential properties that have been foreclosed on has been signed into law. The now-enacted S-1229/A-1257 bill was prime sponsored by Sen. Christopher J. Connors and cosponsored by Assemblyman Brian E. Rumpf and Assemblywoman DiAnne C. Gove of the 9th District delegation.

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Unmaintained, foreclosed properties
are an eyesore for neighbors.

Under the provisions of the legislation, an ordinance would also provide that the creditor liable for the residential property, if located out of state, would be accountable for assigning an in-state representative or agent to collaborate with the municipality. The provisions of the new law take effect immediately.

Upon the signing of S-1229/A-1257, the 9th District delegation released the following statement: “Unmaintained, vacant properties continue to cause deep frustration for residents who, as homeowners, want their property values protected in these difficult economic times, especially on the real estate front. Our delegation was strongly supportive of this initiative largely due to the concerns raised by residents of age-restricted communities for whom unmaintained, vacant properties serve as a consistent source of agitation. Residents with whom we have spoken took issue with the decision-making process by banks in that these properties will only be more difficult to sell if left unmaintained, especially for a prolonged period.

“Meanwhile, as banks did little to nothing in terms of maintenance, many vacant properties fell into disrepair and stood out as eyesores. Understandably, local residents and municipalities impacted by this issue called for action to hold banks accountable. Based on the broad bipartisan support for the legislation, which was passed overwhelmingly by both Houses, this is a serious issue throughout the state.

“Existing law already requires creditors in the process of foreclosing on properties to be responsible for the maintenance and upkeep of the property. However, requiring a bank to designate an agent streamlines the process and better enables municipalities to enforce local ordinances by avoiding certain jurisdictional issues. To that end, there is a greater likelihood of resolving serious issues linked to vacant properties that communities and municipalities were increasingly forced to contend with since the housing crisis hit.”

— Kelley Anne Essinger


This article was published in The SandPaper.