Susan R. Rubright, member of Brach Eichler. LLC

New Jersey Governor Phil Murphy has signed into law a bill that will allow municipalities to create land banks that will help assemble and sell “blighted properties.” The measure, known as the “New Jersey Land Banking Law,” provides that land bank entities, which can be a municipality or designated nonprofit organization or public entity, will be able to acquire properties and act as a municipality's agent to purchase liens at a tax sale, carry out lien foreclosures and take individual abandoned properties. The law requires a publicly accessible database of information on properties, as well the preparation of an annual report by the community advisory board on the database.

Governor Christie vetoed similar legislation in the past, but the current administration believes that land banks will help turn around neglected properties to revitalize communities throughout the State.  But will they?

In the past, the primary means for municipalities to address abandoned or neglected properties was to include them in an area designated as one in need of “redevelopment” or “rehabilitation” under the provisions of the Local Redevelopment and Housing Law (“LRHL”), N.J.S.A. 40A:12A-1 et seq. Unless a developer was interested in the area or unless the municipality or the local redevelopment entity were actively pursuing a redeveloper or doing it themselves, the subject properties could remain “as is” for an indeterminate time.