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A 3237

Exempts creditor from paying municipal property registration fee if property is subject to automatic stay under federal Bankruptcy Code.

2026-2027 Regular Session Introduced by Shama Haider and 2 co-sponsors

The bill waives annual property registration fees for foreclosed properties if a bankruptcy automatic stay (Chapter 7/13) is active, while expanding municipal oversight and mainten

Reported and Referred to Assembly Appropriations Committee
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Bill Summary · A 3237

Summary of Bill A 3237 (Session 222, New Jersey)

Purpose and intent

This bill amends the property registration framework established in P.L.2021, c.444. Its central goal is to regulate property registration fees tied to foreclosure properties and to clarify protections for creditors under the federal Bankruptcy Code, particularly regarding automatic stays. Notably, it includes a targeted provision to exempt creditors from paying municipal property registration fees when a property is subject to an automatic stay in bankruptcy.

Key provisions and changes

  • Additions to existing authority for municipalities:

    • Municipalities may adopt ordinances to create a property registration program for foreclosed properties, regulate exterior maintenance of vacant/abandoned properties, and impose annual or semi-annual property registration fees on creditors.

  • Creditors’ registration requirements:

    • Foreclosing creditors must register properties in foreclosure with the municipality, providing identifying information about the creditor, the foreclosure filing details (court, docket number), and whether the property is vacant and abandoned.
    • If creditor information changes (name, address, phone), the creditor must update the registration within 10 days.
    • If a registered property becomes vacant/abandoned after initial registration, the status must be updated.
    • Creditors must be responsible for exterior care, maintenance, and security if the property is vacant and abandoned while registered.
    • Out-of-state creditors must appoint an in-state representative/agent.

  • Enforcement and notices:

    • Municipal officers may issue notices for violations of the property maintenance requirements, with a 30-day cure period (or 10 days for imminent threats).

  • Administrative and contracting authority:

    • Municipalities, counties, or county improvement authorities may contract with private entities to administer the program, including registration, communications with creditors, invoicing, and fee collection.
    • Fees collected are treated as municipal charges under the tax sale law, with oversight and rules from the Local Finance Board.

  • Fee structure (subsection e):

    • Annual fees may be charged to creditors for foreclosed properties:
    • Up to $500 per property per year for properties that were foreclosed.
    • An additional up to $2,000 per property per year if the property is vacant or abandoned at the time of foreclosure or becomes vacant/abandoned during foreclosure.
    • Crucially, the bill provides a specific exemption:
    • A creditor shall not be charged these annual fees if the subject property is included in a bankruptcy under Chapter 7 or Chapter 13 and the automatic stay has not been vacated.

  • Penalties and fines (subsection g):

    • Out-of-state creditors violating the in-state representative requirement face a $2,500 daily fine.
    • Other violations incur a $1,500 daily fine, with commencement timelines depending on the nature of the violation.

  • Revenue use (subsection h):

    • At least 20% of collected fees must be used for municipal code enforcement purposes.

  • Definitions (subsection i):

    • The bill provides definitions for “creditor” (mortgagee or their agent/assignee) and “local unit” (municipality, county, or related authority).

Who is affected

  • Foreclosing creditors (including mortgagees and servicers/assignees) operating within New Jersey.
  • Municipalities, counties, and county improvement authorities implementing or administering property registration programs.
  • In-state and out-of-state creditors with foreclosure properties subject to New Jersey local ordinances.
  • Residents and neighboring property owners impacted by vacant/abandoned property maintenance requirements.

Procedural and timeline aspects

  • Effective date: The act takes effect immediately upon enactment.
  • Administrative timeline: Various 10-day and 30-day (or 10-day) timelines apply for updates, notices, and compliance.
  • Fee collection and disbursement: Fees collected via third-party entities must be paid to the municipality promptly, with annual certifications to assist tax lien enforcement.

Note on bankruptcy exemption

  • The standout provision: If a property is in bankruptcy (Chapter 7 or 13) and the automatic stay is in effect, the annual property registration fee may not be imposed on the creditor for that property.

This bill otherwise expands municipal oversight of foreclosed properties while offering targeted relief to creditors under bankruptcy protections.

Compiled from official sources — confirm details with the bill’s official record.

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