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.*

S725 1R

[First Reprint]

SENATE, No. 725

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Senator JOHN J. BURZICHELLI

District 3 (Cumberland, Gloucester and Salem)

Senator SHIRLEY K. TURNER

District 15 (Hunterdon and Mercer)

SYNOPSIS

���� 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.

CURRENT VERSION OF TEXT

���� As reported by the Senate State Government, Wagering,
Tourism & Historic Preservation Committee on June 11, 2026, with
amendments.

��

An Act
1
[
permitting
municipalities to acquire
]

concerning acquisition of
1
certain
real property
1
by
certain distressed municipalities, including procedures for determination and
payment of fair market value,
1

and supplementing P.L.1971, c.361 (C.20:3-1 et seq.).

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� The Legislature finds
and declares that:

���� a.���� Vacant and abandoned
properties create a greater risk of blight and can create a wide range of
problems for the communities in which they are located.� These problems can
include fostering criminal activity, creating public health problems, depressing
neighboring property values, reducing revenues for municipalities, and
otherwise diminishing the quality of life for residents and business operators
in those areas.

���� b.��� While the
"Abandoned Properties Rehabilitation Act," 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.),
enable a municipality to obtain title to real property that is abandoned,
vacant, or subject to unpaid taxes, the difficulty of proving abandonment or
vacancy, and the costs associated with obtaining title, pursuant to such laws,
and the debt owed on the real property to the municipality, often outweighs the
value of the property itself.

���� c.���� Therefore, it is
necessary, and shall constitute a public purpose, to enact legislation enabling
a municipality to obtain title to vacant and abandoned property or otherwise
retain the property for sale or other transfer, which would allow
municipalities to more easily sell or restore these properties, improve the
public health, raise neighboring property values, increase municipal revenue,
and increase the quality of life for residents and businesses in the
municipality.

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

���� (a)�� overgrown or neglected
vegetation;

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

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

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

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

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

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

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

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

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

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

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

���� (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)�� a building is occupied
on a seasonal basis, but otherwise secure; or

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

����
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"Distressed
municipality" means a municipality that has a municipal revitalization
index distress score of 45 or greater, as determined by the Department of
Community Affairs. �A 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.��� a. Notwithstanding any
other provision of the "Abandoned Properties Rehabilitation Act,"
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.), a
1
distressed
1

municipality may, for real property that is vacant, abandoned, or subject to
unpaid taxes pursuant to R.S.54:5-6, in lieu of acquiring title to the real
property pursuant to the "Abandoned Properties Rehabilitation Act,"
P.L.2003, c.210 (C.55:19-78 et seq.), the "tax sale law," R.S.54:5-1
et seq., or the In Rem Tax Foreclosure Act (1948), P.L.1948, c.96
(C.54:5-104.29 et seq.), either: purchase the property by paying the property
owner the fair market value of the property; or exercise the municipality�s power
of eminent domain and acquire the real property that is vacant, abandoned, or
subject to unpaid taxes, pursuant to the "Eminent Domain Act of
1971," P.L.1971, c.361 (C.20:3-1 et seq.).

���� b.��� For real property
acquired by a
1
distressed
1

municipality pursuant to subsection a. of this section, a
1
distressed
1

municipality may subtract the amount of any unpaid taxes and municipal liens
from the amount the
1
distressed
1

municipality would otherwise be required to pay to the owner of the real
property in compensation.

���� c.� If a
1
distressed
1

municipality is unable, after making good faith and diligent efforts, to locate
the owner of real property subject to municipal action pursuant to subsection
a. of this section, the
1
distressed
1

municipality shall hold the amount of compensation owed and payable to the real
property owner in trust for one year, as required of governmental entities
pursuant to R.S.46:30B-41.2, after which period of time that amount shall be
presumed abandoned and handled in accordance with the "Uniform Unclaimed
Property Act," R.S.46:30B-1 et seq.

����
1
d.�� Nothing
in this section is intended to supersede or limit a summary action to foreclose
mortgages on vacant and abandoned properties pursuant to section 1 of P.L.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

����
1
4.�� a.�������� If
a distressed municipality seeks to purchase a property for real market value by
exercising the distressed municipality's power of eminent domain pursuant to
section 3 of P.L.��� , c.���� (C.�������� ) (pending before the Legislature as
this bill), the municipality shall post its intention to exercise this power in
the official newspaper of the municipality or on the municipality�s Internet
website, which publication shall constitute public notice and, within 10 days
after publication, shall send a notice, by certified mail, return receipt
requested, and by regular mail, to the owner of record of the vacant or
abandoned property.� The published and mailed notices shall identify property
determined to be vacant or abandoned setting forth the owner of record, if
known, the tax lot and block number and street address.� The municipality, in
consultation with the tax collector, shall also send out a notice by regular
mail to any mortgagee, servicing organization, or property tax processing
organization that receives a duplicate copy of the tax bill pursuant to
subsection d. of R.S.54:4-64.� When the owner of record is not known for a
particular property and cannot be ascertained by the exercise of reasonable
diligence by the tax collector, notice shall not be mailed but instead shall be
posted on the property in the manner as provided in section 5 of P.L.1942,
c.112 (C.40:48-2.7).� The mailed notice shall indicate the factual basis for
the municipality's finding that the property is vacant or abandoned property as
that term is defined in section 2 of P.L.��� , c.���� (C.�������� ) (pending
before the Legislature as this bill) specifying the information relied upon in
making such finding.� The notice shall be indexed by the name 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
lienholder may challenge the determination of their property as vacant or
abandoned pursuant to subsection a. of this section by appealing that
determination to the municipality within 30 days of receipt of certified notice
or 40 days from the date upon which the notice was sent.� An owner whose
identity was not known to the municipality shall have 40 days from the date
upon which notice was published or posted, whichever is later, to challenge the
determination of their property as vacant or abandoned property.� A property be
presumed to be vacant or abandoned property unless the owner, through the
submission of an affidavit or certification by the property owner, can
demonstrate that the property is not vacant or abandoned by remediating conditions
or by showing intent to remediate the conditions that caused the property to be
determined as vacant or abandoned.

����
c.���� If within 30 days of
receipt of certified notice the 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.
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����
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[
4.
]

5.
1
���� This
act shall take effect immediately.