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AN ORDINANCE AMENDING TITLE XVIII HOUSING CODE OF THE REVISED GENERAL ORDINANCES OF THE CITY OF NEWARK BY ESTABLISHING THE PROPERTY COMPLIANCE COST RECOVERY PROGRAM TO AUTHORIZE THE RECOVERY OF EXTRAORDINARY MUNICIPAL COMPLIANCE COSTS RESULTING FROM EXTRAORDINARY MUNICIPAL INTERVENTION
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WHEREAS, the City of Newark has a substantial interest in protecting the public health, safety, and welfare by ensuring that residential, commercial, mixed-use, vacant, and other properties are maintained in compliance with applicable federal, State, and local laws, ordinances, regulations, and codes; and
WHEREAS, the Municipal Council finds that certain properties require extraordinary municipal resources beyond the ordinary provision of governmental services due to repeated or significant violations of applicable laws, ordinances, regulations, or conditions affecting the public health, safety, and welfare; and
WHEREAS, the Municipal Council further finds that such conditions frequently require coordinated enforcement efforts, engineering and technical services, legal action, emergency response, property stabilization, environmental remediation, receivership proceedings, and other extraordinary municipal activities necessary to protect residents and surrounding neighborhoods; and
WHEREAS, the Municipal Council finds that the extraordinary municipal expenditures associated with such properties are presently absorbed by the taxpayers of the City of Newark rather than recovered from the Responsible Property Owners whose actions or omissions necessitated those expenditures; and
WHEREAS, the Municipal Council further finds that existing enforcement remedies are intended to secure compliance with applicable laws but do not establish a comprehensive mechanism for recovering documented Extraordinary Municipal Compliance Costs incurred by the City in responding to such conditions; and
WHEREAS, the Municipal Council recognizes that, in appropriate circumstances, the City may initiate or participate in receivership proceedings pursuant to applicable law, resulting in additional expenditures necessary to preserve, secure, stabilize, rehabilitate, or otherwise protect affected properties and surrounding neighborhoods; and
WHEREAS, the Municipal Council finds that establishing a Property Compliance Cost Recovery Program and a dedicated Property Compliance Cost Recovery Reserve will promote fiscal responsibility by authorizing the recovery of documented Extraordinary Municipal Compliance Costs and ensuring that recovered monies are used exclusively for purposes authorized by this Ordinance.
NOW, THEREFORE, BE IT ORDAINED by the Municipal Council of the City of Newark, County of Essex, State of New Jersey, as follows:
SECTION 1. PURPOSE
The purpose of this Ordinance is to establish the Property Compliance Cost Recovery Program and the Property Compliance Cost Recovery Reserve to authorize the recovery of documented Extraordinary Municipal Compliance Costs incurred by the City beyond the ordinary provision of governmental services as a result of Extraordinary Municipal Intervention.
This Ordinance is intended to:
A. Authorize the recovery of documented Extraordinary Municipal Compliance Costs from the Responsible Property Owner to the fullest extent permitted by law.
B. Establish a uniform process for assessing, recovering, administering, and collecting Extraordinary Municipal Compliance Costs.
C. Establish the Property Compliance Cost Recovery Reserve for the receipt, administration, and expenditure of monies recovered pursuant to this Ordinance.
D. Preserve and supplement all remedies otherwise available to the City under federal law, State law, and the Code of the City of Newark.
This Ordinance shall be liberally construed to effectuate its remedial purposes.
SECTION 2. DEFINITIONS
For purposes of this Ordinance, the following words and phrases shall have the meanings set forth below unless the context clearly indicates otherwise.
A. Extraordinary Municipal Compliance Costs
"Extraordinary Municipal Compliance Costs" shall mean documented and reasonable expenditures incurred by the City that exceed the ordinary provision of governmental services and are directly attributable to Extraordinary Municipal Intervention.
Such costs may include, but are not limited to:
1. Inspection and code enforcement services;
2. Engineering, technical, or professional services;
3. Legal services, litigation, and receivership proceedings;
4. Emergency stabilization, securing, maintenance, remediation, or preservation of property;
5. Public safety services;
6. Administrative costs directly related to Extraordinary Municipal Intervention; and
7. Any other documented expenditure reasonably necessary to protect the public health, safety, or welfare or to carry out the purposes of this Ordinance.
Extraordinary Municipal Compliance Costs shall not include routine governmental services ordinarily provided by the City in the normal course of municipal operations.
B. Extraordinary Municipal Intervention
"Extraordinary Municipal Intervention" shall mean municipal action requiring specialized, emergency, repeated, or coordinated governmental services beyond those ordinarily required for routine municipal operations or code enforcement.
C. Property Compliance Cost Recovery Assessment
"Property Compliance Cost Recovery Assessment" shall mean the assessment issued pursuant to this Ordinance for the recovery of Extraordinary Municipal Compliance Costs.
D. Property Compliance Cost Recovery Reserve
"Property Compliance Cost Recovery Reserve" shall mean the dedicated municipal reserve established pursuant to this Ordinance for the receipt, administration, and expenditure of monies recovered under this Ordinance.
E. Receivership Proceeding
"Receivership Proceeding" shall mean any judicial proceeding authorized by applicable law in which a receiver is appointed to preserve, secure, manage, rehabilitate, or otherwise administer real property.
F. Responsible Property Owner
"Responsible Property Owner" shall mean any individual, partnership, corporation, limited liability company, trust, estate, or other legal entity holding legal or equitable title to, or otherwise legally responsible for, the maintenance, operation, or management of a property at the time Extraordinary Municipal Compliance Costs are incurred.
SECTION 3. AUTHORITY TO RECOVER EXTRAORDINARY MUNICIPAL COMPLIANCE COSTS
A. Authority
Whenever Extraordinary Municipal Intervention results in Extraordinary Municipal Compliance Costs, the City is authorized to recover such documented costs from the Responsible Property Owner to the fullest extent permitted by law.
The authority granted by this Ordinance is intended solely to reimburse the City for Extraordinary Municipal Compliance Costs incurred beyond the ordinary provision of governmental services and shall not be construed as imposing an additional fine or penalty unless otherwise authorized by law.
The remedies established by this Ordinance are cumulative and shall supplement all other remedies and enforcement authority available to the City under federal law, State law, and the Code of the City of Newark.
B. Documentation
Extraordinary Municipal Compliance Costs recovered pursuant to this Ordinance shall be supported by documentation sufficient to demonstrate:
1. That Extraordinary Municipal Intervention occurred;
2. That the City incurred the costs;
3. That the costs are recoverable pursuant to this Ordinance; and
4. That the costs are reasonably attributable to the property giving rise to the Extraordinary Municipal Intervention.
Documentation may include inspection reports, departmental records, invoices, contracts, procurement records, photographs, engineering reports, correspondence, court filings, accounting records, time records, or other records reasonably necessary to substantiate the costs incurred.
The absence of documentation from one municipal department shall not preclude the recovery of documented Extraordinary Municipal Compliance Costs incurred and supported by another municipal department.
SECTION 4. PROPERTY COMPLIANCE COST RECOVERY ASSESSMENTS
A. Authority to Assess
Whenever the City incurs Extraordinary Municipal Compliance Costs as a result of Extraordinary Municipal Intervention, the Director of Finance shall prepare a Proposed Property Compliance Cost Recovery Assessment identifying the documented costs eligible for recovery pursuant to this Ordinance.
A Property Compliance Cost Recovery Assessment issued pursuant to this Ordinance is intended solely to reimburse the City for documented Extraordinary Municipal Compliance Costs and shall not be construed as a fine, penalty, or substitute for any enforcement action otherwise authorized by law.
B. Recoverable Costs
Extraordinary Municipal Compliance Costs recoverable under this Ordinance may include, but are not limited to, documented expenditures within the following categories:
1. Inspection and code enforcement services;
2. Engineering, technical, or professional services;
3. Legal services and litigation;
4. Emergency stabilization, securing, preservation, maintenance, or remediation of property;
5. Public safety services;
6. Receivership proceedings;
7. Administrative costs directly related to Extraordinary Municipal Intervention; and
8. Any other documented expenditure reasonably necessary to protect the public health, safety, or welfare or to carry out the purposes of this Ordinance.
C. Municipal Cost Recovery Schedule
The Director of Finance shall establish and maintain a Municipal Cost Recovery Schedule identifying recoverable cost categories and methodologies consistent with this Ordinance.
The Municipal Cost Recovery Schedule may be amended from time to time to reflect changes in municipal operations, personnel classifications, contractual costs, accounting practices, or other administrative requirements, provided such amendments remain consistent with this Ordinance.
D. Limitation
No Property Compliance Cost Recovery Assessment shall include costs associated solely with routine governmental services ordinarily provided by the City in the normal course of municipal operations.
Nothing contained herein shall preclude the City from recovering any additional costs, assessments, penalties, liens, damages, or other remedies otherwise authorized by federal law, State law, or the Code of the City of Newark.
SECTION 5. DEDICATED ACCOUNTING OF RECOVERED MONIES
A. Authorization
The Director of Finance is authorized to establish and maintain, in accordance with applicable law, a dedicated accounting mechanism for the receipt, administration, and expenditure of monies recovered pursuant to this Ordinance.
B. Deposit of Recovered Monies
Except as otherwise required by law, all monies recovered pursuant to this Ordinance, including but not limited to Property Compliance Cost Recovery Assessments, court-ordered reimbursements, receivership recoveries, judgments, settlements, grants, and any other monies lawfully recovered or received pursuant to this Ordinance, shall be deposited into the dedicated accounting mechanism established pursuant to this Section.
C. Authorized Uses
Monies accounted for pursuant to this Section shall be used exclusively for purposes authorized by this Ordinance, including:
1. Reimbursement of Extraordinary Municipal Compliance Costs;
2. Extraordinary Municipal Intervention activities;
3. Receivership proceedings and related expenditures;
4. Property stabilization and neighborhood protection activities directly related to Extraordinary Municipal Intervention; and
5. Other lawful expenditures authorized by this Ordinance.
Such monies shall not be appropriated or expended for unrelated municipal purposes except as otherwise required by applicable law.
D. Administration
The Director of Finance shall administer the accounting mechanism established pursuant to this Section and maintain records sufficient to account for all receipts and expenditures made pursuant to this Ordinance.
E. Relationship to Other Remedies
Nothing contained in this Section shall limit the City's authority to recover costs, impose penalties authorized by law, seek injunctive relief, pursue receivership proceedings, record municipal liens, or exercise any other remedy authorized by federal law, State law, or the Code of the City of Newark.
SECTION 6. PROPOSED ASSESSMENT; NOTICE AND OPPORTUNITY TO BE HEARD
A. Proposed Assessment
Upon determining that documented Extraordinary Municipal Compliance Costs have been incurred and are recoverable pursuant to this Ordinance, the Director of Finance shall prepare a Proposed Property Compliance Cost Recovery Assessment.
Prior to issuance, the Proposed Property Compliance Cost Recovery Assessment shall:
1. Be reviewed by the Business Administrator, or the Business Administrator's designee, who shall determine whether the proposed assessment is appropriate for administrative issuance; and
2. Be reviewed by the Law Department for legal sufficiency and compliance with this Ordinance.
Upon completion of the required administrative and legal review, the Director of Finance shall issue the Proposed Property Compliance Cost Recovery Assessment.
B. Contents of Proposed Assessment
The Proposed Property Compliance Cost Recovery Assessment shall include, at a minimum:
1. The property address and tax block and lot;
2. A summary of the Extraordinary Municipal Intervention giving rise to the assessment;
3. A summary of the documented Extraordinary Municipal Compliance Costs;
4. The total amount proposed for recovery;
5. Notice of the Responsible Property Owner's right to request an administrative review; and
6. The time within which such request must be submitted.
C. Notice
The Proposed Property Compliance Cost Recovery Assessment shall be served upon the Responsible Property Owner in a manner reasonably calculated to provide notice, including any method authorized by applicable law.
Failure of actual receipt shall not invalidate the assessment where the City has substantially complied with the notice requirements of this Ordinance and applicable law.
D. Request for Administrative Review
A Responsible Property Owner may request an administrative review by submitting a written request to the Department of Finance within thirty (30) days after service of the Proposed Property Compliance Cost Recovery Assessment.
The request shall identify the basis for disputing the proposed assessment and include any documentation the Responsible Property Owner wishes the City to consider.
E. Administrative Review
The City shall consider the documentation submitted by the Responsible Property Owner together with the documentation supporting the proposed assessment.
The Law Department may participate in the administrative review to address legal issues arising under this Ordinance.
Following completion of the review, the Director of Finance shall issue a written determination affirming, modifying, or withdrawing the Proposed Property Compliance Cost Recovery Assessment.
F. Final Assessment
The written determination issued following administrative review shall constitute the Final Property Compliance Cost Recovery Assessment.
If no request for administrative review is received within thirty (30) days following service of the Proposed Property Compliance Cost Recovery Assessment, the Proposed Property Compliance Cost Recovery Assessment shall automatically become the Final Property Compliance Cost Recovery Assessment.
G. Preservation of Remedies
Nothing contained in this Section shall limit the City's authority to pursue any additional remedy authorized by federal law, State law, or the Code of the City of Newark.
SECTION 7. COLLECTION AND ENFORCEMENT
A. Payment of Final Assessment
A Final Property Compliance Cost Recovery Assessment shall be due and payable within thirty (30) days following issuance of the Final Assessment unless an alternative payment arrangement is approved by the Director of Finance or otherwise authorized by law.
B. Municipal Lien
If a Final Property Compliance Cost Recovery Assessment remains unpaid after the expiration of the payment period, the City may, to the fullest extent permitted by law, record the unpaid assessment as a municipal lien against the property.
Such lien may be enforced and collected in the same manner as any other municipal lien authorized under the laws of the State of New Jersey.
C. Additional Collection Remedies
The remedies provided by this Ordinance are cumulative.
Nothing contained herein shall prevent the City from pursuing any other remedy authorized by federal law, State law, or the Code of the City of Newark, including, but not limited to:
1. Civil actions to recover amounts due;
2. Receivership proceedings;
3. Injunctive relief;
4. Collection actions;
5. Recovery of court costs and attorneys' fees where authorized by law; and
6. Any other remedy authorized by applicable law.
D. Satisfaction of Lien
Upon payment in full of a Final Property Compliance Cost Recovery Assessment, together with any additional costs authorized by law, the City shall discharge or release the lien in accordance with applicable law.
SECTION 8. RECEIVERSHIP COST RECOVERY
A. Authority
Whenever the City incurs Extraordinary Municipal Compliance Costs in connection with a Receivership Proceeding, whether as petitioner, participating governmental entity, interested party, or otherwise as authorized by law, the City is authorized to recover such documented costs from the Responsible Property Owner to the fullest extent permitted by law.
B. Recoverable Costs
Recoverable costs associated with a Receivership Proceeding may include, but are not limited to:
1. Court costs and filing fees;
2. Receiver compensation approved by the court;
3. Legal services and litigation;
4. Engineering, architectural, environmental, financial, or other professional services;
5. Property inspections and evaluations;
6. Property management, stabilization, preservation, securing, maintenance, or remediation;
7. Emergency procurement of contractors or professional services; and
8. Any other documented expenditure authorized by law or approved by the court.
C. Deposit of Recovered Monies
Unless otherwise required by law or ordered by a court of competent jurisdiction, monies recovered pursuant to this Section shall be deposited into the Property Compliance Cost Recovery Reserve.
D. Preservation of Remedies
Nothing contained in this Section shall limit the City's authority to pursue any remedy otherwise authorized by federal law, State law, court order, or the Code of the City of Newark.
SECTION 9. ADMINISTRATION AND RESPONSIBILITIES
A. Municipal Departments
Any municipal department that incurs Extraordinary Municipal Compliance Costs shall document such costs and submit supporting documentation to the Director of Finance.
Nothing contained herein shall require Extraordinary Municipal Compliance Costs to be incurred by more than one municipal department before a Property Compliance Cost Recovery Assessment may be prepared or issued.
B. Department of Finance
The Department of Finance shall:
1. Receive and review documentation submitted pursuant to this Ordinance;
2. Determine the amount of Extraordinary Municipal Compliance Costs eligible for recovery;
3. Prepare the Proposed Property Compliance Cost Recovery Assessment;
4. Establish and maintain the Municipal Cost Recovery Schedule;
5. Administer the Property Compliance Cost Recovery Reserve;
6. Maintain records necessary to support assessments issued pursuant to this Ordinance; and
7. Issue the Proposed Property Compliance Cost clerk
8. Recovery Assessment following completion of the reviews required by this Ordinance.
C. Business Administrator
Prior to issuance of a Proposed Property Compliance Cost Recovery Assessment, the Business Administrator, or the Business Administrator's designee, shall review the proposed assessment and concur that it is appropriate for issuance from an administrative and operational perspective.
D. Law Department
Following review by the Business Administrator, the Law Department shall review the Proposed Property Compliance Cost Recovery Assessment for legal sufficiency and compliance with this Ordinance.
The Law Department may recommend revisions necessary to ensure that the proposed assessment is legally supportable prior to issuance.
E. Records
Municipal departments shall maintain documentation sufficient to support Extraordinary Municipal Compliance Costs submitted pursuant to this Ordinance.
Documentation may include inspection reports, invoices, contracts, procurement records, accounting records, engineering reports, photographs, correspondence, court filings, time records, or any other documentation reasonably necessary to substantiate the costs incurred.
SECTION 10. SEVERABILITY
If any section, subsection, sentence, clause, phrase, or provision of this Ordinance is declared invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance, which shall remain in full force and effect. The Municipal Council declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, and provision irrespective of the fact that any one or more portions may be declared invalid.
SECTION 11. REPEALER
All ordinances or parts of ordinances inconsistent with the provisions of this Ordinance are hereby repealed to the extent of such inconsistency.
SECTION 12. EFFECTIVE DATE
This Ordinance shall take effect upon final passage, approval, and publication in accordance with applicable law.