NJ A794

Distressed municipalities (those with a municipal revitalization index distress score of 50 or greater) may acquire vacant, abandoned, or tax-delinquent properties by paying fair market value or using eminent domain, as an alternative to existing foreclosure and rehabilitation procedures.

Municipalities can deduct unpaid taxes and municipal liens from the compensation owed to property owners when acquiring such properties.

Property is considered "abandoned" or "vacant" if it exhibits at least 4 of 14 specified conditions, including overgrown vegetation, disconnected utilities, boarded windows, accumulation of junk or debris, or uncorrected building code violations.

Properties undergoing active construction/renovation, occupied seasonally, or involved in probate or ownership disputes are exempt from the abandoned/vacant designation.

If a municipality cannot locate the property owner after good faith efforts, compensation must be held in trust for one year before being treated as abandoned property under state unclaimed property laws.