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A 5373

Modifies procedures for determination and payment of fair market value in distressed municipalities; concerns real property that is abandoned, vacant, or subject to unpaid taxes.*

2024-2025 Regular Session Introduced by Dave Bailey and 3 co-sponsors

Distressed municipalities can acquire vacant, abandoned, or tax‑delinquent property by paying fair market value or via eminent domain to accelerate remediation and redevelopment.

Reported out of Assembly Committee with Amendments, 2nd Reading
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Bill Summary · A 5373

Bill Summary — A5373 (Reprint A) — Acquisition of Abandoned, Vacant, or Tax‑delinquent Property by Distressed Municipalities

Status: Reported out of Assembly Housing Committee with amendments, 2nd Reading
Introduced: February 13, 2025 — Printed as A5373A (June 9, 2025)
Primary sponsor: Catalina Cruz; multiple cosponsors (see below)
Related: S4735, S4222 (companions)
Effective date: Immediately upon enactment

Main purpose

A5373 authorizes certain "distressed municipalities" to acquire title to real property that is vacant, abandoned, or subject to unpaid taxes either by: (1) purchasing it for fair market value, or (2) using eminent domain under the Eminent Domain Act of 1971. The bill provides an alternative to existing acquisition routes (the Abandoned Properties Rehabilitation Act, the tax sale law, and In Rem tax foreclosure) to streamline municipal remediation and reuse of blighted properties.

Key provisions

  • Limits authority to "distressed municipalities," defined as municipalities with a municipal revitalization index distress score of 50 or greater (as determined by the Department of Community Affairs).
  • Allows a distressed municipality, in lieu of APRA, tax sale, or In Rem foreclosure procedures, to:
    • Purchase the property by paying the owner fair market value; or
    • Acquire title via eminent domain under P.L.1971, c.361.
  • Permits the municipality to deduct unpaid property taxes and municipal liens from the compensation otherwise due to the owner.
  • If the municipality cannot locate the owner after good‑faith, diligent efforts, it must hold the owed compensation in trust for one year (per R.S.46:30B‑41.2); thereafter the funds are treated under the Uniform Unclaimed Property Act.
  • Defines "abandoned" or "vacant" property as one exhibiting at least four of 14 specified indicators (examples include overgrown vegetation; accumulation of mail/newspapers; disconnected utilities; boarded/damaged windows; uncorrected code violations). Provides exceptions where property is not considered abandoned (e.g., active construction/rehab proceeding diligently, seasonal occupancy, or properties secure but subject to probate/quiet title actions).

Who is affected

  • Distressed municipalities (those with a score ≥50) gain a new tool to obtain and remediate problem properties.
  • Property owners of vacant/abandoned or tax‑delinquent parcels in qualifying municipalities may receive fair market compensation reduced by unpaid taxes/municipal liens.
  • Neighbors and local stakeholders may see faster remediation and redevelopment of blighted properties.

Procedural/timeline notes

  • The bill takes effect immediately upon enactment.
  • Committee amendments narrowed the bill’s scope to distressed municipalities and added the distress‑score definition.
  • Current status: reported with committee amendments; next legislative steps include additional Assembly readings and concurrence in the Senate.

This summary is intended to describe the bill’s substantive provisions and likely practical effects; legal interpretations (e.g., about “good faith” searches or eminent domain takings) would depend on implementing regulations and court decisions.

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

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