This bill modifies the procedures for distressed municipalities in New Jersey to determine and pay fair market value for real properties that are vacant, abandoned, or subject to unpaid taxes. It allows these municipalities to either purchase the property at fair market value or exercise their power of eminent domain to acquire the property, bypassing the traditional methods outlined in the "Abandoned Properties Rehabilitation Act," the "tax sale law," and the In Rem Tax Foreclosure Act. The bill defines a "distressed municipality" as one with a municipal revitalization index distress score of 50 or greater and establishes a new definition for "abandoned" or "vacant" properties based on specific conditions that must be met.

Additionally, the bill permits distressed municipalities to deduct any unpaid taxes and municipal liens from the compensation owed to the property owner. If a municipality cannot locate the property owner after making diligent efforts, it must hold the compensation amount in trust for one year before it is considered abandoned under the "Uniform Unclaimed Property Act." The bill aims to facilitate the acquisition and rehabilitation of distressed properties, thereby improving public health, property values, and municipal revenues.