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Orders of Possession in New Jersey
In 2004, New Jersey authorized "orders of possession" (another term for vacant property receivership) in the Abandoned Property Rehabilitation Act. If neither the property owner nor other lien holders submit a realistic plan to quickly rehabilitate the property, the court can appoint an "entity in possession" to expedite rehabilitation. Repairs can be funded through loans or state grants, and the value of any loan becomes a lien on the property. If the owner does not regain possession of the property, the court can order the sale of the property at fair market value with the proceeds going toward the various liens on the property and providing a development fee to the entity in possession; any remaining proceeds go to the owner. The purchaser of a rehabilitated property can obtain it with a clear, marketable title.
Using NSP for Receivership in Massachusetts
Massachusetts allocated some of its Neighborhood Stabilization Program (NSP) money to support a receivership program for communities struggling with distressed foreclosed properties. The program started as a pilot project in the cities of New Bedford, Springfield, and Worcester, and was later expanded to dozens of additional cities across the state. The NSP funding was used by the Massachusetts Housing Partnership and the Attorney General's Office to provide training for receivers and help them identify loan sources.
In Springfield, Massachusetts, receivership was used to restore occupied multifamily properties with long histories of code violations. CDBG money helped to provide low-cost loans for the receivers.
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Use vacant property receivership laws for rehab and maintenance
Other pages in this section:
Restore curb appeal of foreclosed properties
Manage the post-violation process to achieve results
Engage in nuisance abatement or demolitions
Expand monitoring of foreclosed properties and locate owners