Atlantic County scored another victory for its own taxpayers and those across the state when the New Jersey Appellate Division affirmed the Superior Court in Mercer County and ruled in favor of Atlantic County Sheriff Joseph O’Donoghue in a consolidated case that challenged the constitutionality of the NJ Community Wealth Preservation Program’s right of second refusal for nonprofits.
County Executive Dennis Levinson said he was especially proud to protect taxpayers at a vulnerable time in their lives when facing the loss of their properties.
The Appellate Division found that depriving dispossessed homeowners of their right for fair market value compensation was unconstitutional under the federal Constitution’s Fifth Amendment.
The original CWPP provided nonprofits with the right of second refusal to purchase foreclosed properties at the “upset price,” or minimal acceptable bid, thus removing any rights of the property owner to surplus equity.
This ruling will result in nonprofits being required to bid competitively at Sheriff’s Sales, according to Sheriff O’Donoghue.
“Losing a home is one of the most traumatic circumstances one may face,” he said. “We should not add to that burden by eliminating a property owner’s right to legitimate profits earned. None of us know when we may fall on hard times.”
Sheriff O’Donoghue thanked the county Law Department for its support after bringing this issue to the attention of County Counsel N. Lynne Hughes and Assistant County Counsel Arthur Murray. The Law Department moved to intervene under his name in two cases in Atlantic County where the original owner was being deprived of the remaining equity in his/her homes. These cases were consolidated with others from multiple counties.
“This is a win for homeowners throughout New Jersey,” concluded County Executive Levinson. “We live in the highest taxed state in the country, and the state would continue to take and take if allowed. We will not stand by and let that occur.”