All Around Pennsauken

By Tracey Howarth, Coordinator, Pennsauken’s Abandoned and Vacant Property Initiative

A bit of information can go a long way…

I recently had the pleasure of meeting with some of our town’s residents to discuss the Vacant and Abandoned Property program. It was mentioned that it would be a good idea to share the highlights of our meeting so that everyone can better understand what’s happening behind the scenes.

The best place to begin is with some of the more familiar terms that are used when discussing the issue of vacant and abandoned properties. The biggest reason a property becomes vacant is because the bank has begun foreclosure proceedings. When you think about a foreclosed property, it’s often assumed that the property is bank owned. That is not always the case. We have 202 foreclosed homes in town. That number represents the properties whose deed has been taken over by the bank. It does not mean that there aren’t more properties in the process of being foreclosed on. This is important to remember; a bank can begin the proceedings and evict the tenant, yet not transfer the deed into the bank’s name for many years. This leaves the original deed intact, thereby leaving us with no other ownership information except for the name on the deed. It also leaves the home owner thinking that they no longer have any responsibility to the property, when in fact they are still the owner on record. Also, just because a home is foreclosed on does not mean it is a vacant property. Many things can happen during the foreclosure process. A short sale can occur; a home owner can pay the back debt owed; or the owner and the bank can enter into a modified mortgage agreement for a limited amount of time. So it’s important to understand that having a property in foreclosure does not always point us in the right direction.

Many times, people think vacant properties are abandoned; in fact, a vacant property is not the same as an abandoned one. It’s a fine line but an important distinction. A vacant property has been empty for a minimum of six months and has had no construction done on it for six consecutive months. That’s where it all starts. We have 583 vacant properties in town. We have “zero” abandoned properties in town. To call a property abandoned, it must first be vacant. Then, you must prove one of four reasons: it’s a nuisance property; it has at least one quarter of delinquent taxes; construction started but then stopped, and nothing has happened in at least six months; or that the property needs to be rehabilitated but nothing has happened. When we have this proof, we then put the property through the court system to have the appropriate designation applied. Once that “abandoned” designation is in place, the door opens up for us to take further legal action.

One of the requirements of a vacant property owner is to register it with the Township. We currently have 303 properties in town registered as vacant. This is where we get the information on who owns the property; who is responsible for any correspondence on the property (the in state agent); and most importantly, who is the property maintenance company responsible for maintaining the structure. The owner is also responsible for paying a registration fee. Pennsauken’s registration structure is an annual fee that escalates as years pass. The first year is a $500 fee; the second is $1,000; the third is $1,500; and the fourth is $2,000. We are working to change not only the fee structure but converting the process to a semi-annual payment. If we raise the escalating fee structure, we create a more urgent situation for the owners to address. Also, changing the payment to a semi-annual structure will help us keep better track on the ever changing ownership of these properties, thereby helping us to continually hold the banks /owners accountable.

When a property goes vacant, it is the responsibility of the owner to identify the structure with notifications that are easily seen from a distance. Each of these properties is to be labeled with the owner and the property management company’s contact information. This is where you can help. If you believe that you have a vacant property on your block and you do not see any of the required labels, please call and let us know so that we can begin researching that property and get it appropriately registered and labeled.

It’s important to realize that as we move forward with this initiative, we as a municipality must use each of these terms as they are spelled out in our ordinances in order to be successful with any legal action we may want or need to take.

The number of vacant homes in Pennsauken changes on a daily basis. A property can change hands from bank to bank, owner to owner, multiple times in a few months. Since May, many properties in town have changed hands three or four times already. When that happens, it starts the cycle all over again.

Hopefully this helps residents understand the things that we must work with in order to achieve our target goals. Our next article will talk more about the actions that we are taking to address and hold accountable the banks and property management companies responsible for the vacant properties. Some exciting things to look forward to!

As always if you have any questions, please feel free to contact me at (856) 665-1000 ext.145.