How Assembly Bill A794 Could Change Abandoned Property Acquisition in New Jersey

Salem City, New Jersey is facing an abandoned property crisis. Once a thriving manufacturing city with an active residential community, Salem has been encumbered by abandoned properties with overgrown vegetation and boarded up windows. This has greatly impacted the city’s economy, municipal finances, and overall quality of life. Despite the City’s efforts to stop the trend, the abandoned property list has only grown longer. Thankfully, one local politician has proposed a bill which could turn things around, not only for Salem, but for distressed municipalities across the state.

Earlier this year, Assemblyman Dave Bailey introduced Bill A794. This act would provide distressed municipalities with a more streamlined path for acquiring and redeveloping blighted property. Here’s an overview of the bill and how it could affect the way distressed municipalities respond to the abandoned property issue.

Overview

Bill A794 provides distressed municipalities with a procedure to identify and obtain land that is vacant, abandoned, or tax-delinquent. Under the bill, a ‘distressed municipality’ is defined as having a municipal revitalization index distress score of 45 or greater as determined by the Department of Community Affairs. Once a municipality meets this threshold, it retains a distressed status for three years, even if its score later falls below 45.

Properties would be deemed vacant or abandoned if at least four of fourteen enumerated conditions are present. Some of these include accumulation of litter, disconnected utilities, boarded windows, and unresolved code violations. These criteria could assist municipalities in designating abandoned properties which can be a lengthy and complicated process.

Acquisition Methods and Compensation

Bill A794 is not a complete replacement for current statutory means of acquiring abandoned property. Rather, it would supplement existing statutes by saving time and cutting costs.

There are three main laws currently used to acquire abandoned property. One is the Abandoned Properties Rehabilitation Act (APRA). This act contains strict criteria for declaring abandonment. In addition, it is a court driven process that can be very time consuming and expensive. In addition, there is the Eminent Domain Act of 1971 (EDA). This allows local governments to take private property for a public use, provided they pay just compensation. This can also turn into a lengthy process. Finally, there is the In Rem Tax Foreclosure law. This only applies to tax delinquent properties and involves a foreclosure process.

Each of these laws would be supplemented by Bill A794 in several ways. For instance, the bill would ease the strict requirements of abandonment under the APRA. This would save time in identifying properties eligible for acquisition. The bill would also supplement the EDA by allowing municipalities to deduct unpaid taxes and municipal liens from fair market value, thereby reducing their financial burden. Finally, the bill would support In Rem Foreclosure by providing a faster means of acquiring tax delinquent property.

Ability to Challenge Abandonment Designation

The bill allows owners and lienholders to challenge a vacancy or abandonment determination. An owner or lienholder may appeal an abandoned property designation within 30 days after receiving a certified notice or 40 days from the date the notice was sent. If the identity of the record owner was unknown at the time of notice, then the owner has 40 days from the date the notice was published or posted to challenge it.

To successfully challenge a designation of abandonment, a person must submit an affidavit showing intent to remediate. Moreover, a successful challenge requires that either the conditions be remediated within 30 days of receiving the notice or the owner’s actions show intent to remediate as determined by the municipality.

Legislative Status and Public Reaction

Bill A794 is making strong progress. It passed the State Assembly on May 18, 2026, and has since been reported to the Senate Committee for a second reading.

Public sentiment online seems mostly positive. Many believe the bill will allow Salem City to redevelop abandoned lots. On the other hand, critics argue that the bill does not address a major problem: the struggle to attract businesses.

Conclusion

Assembly Bill A794 could provide distressed municipalities with a more efficient and cost-effective way to address blight. While the bill is advancing steadily toward enactment, its ability to facilitate reform for cities like Salem remains to be seen.

To check the status of the bill and its revisions, click here.