Most city attorneys, when working with municipalities to deal with abandoned, vacant, and dilapidated properties, typically become involved in code enforcement actions when property owners fail to comply with municipal orders to remedy serious violations. A city attorney's role is pivotal, explains Mark Adams, President of California Receivership Group, in facilitating the enforcement process from administrative remedies to legal action. Blighted properties lower property values, increase crime, risk public safety, impact municipality revenue, and discourage community investment.
City Attorneys Partner with Municipalities to Remedy Distressed Properties
City attorneys frequently collaborate with city inspectors, planning departments, and public health officials. They will file legal actions on behalf of the city or county to enforce code compliance, negotiate settlements or consent agreements with property owners to bring buildings into compliance without having to go to trial, and advocate for public interests in court, ensuring that health, safety, and environmental standards are met, notes Adams.
When these actions fail, and they unfortunately do for several reasons, city attorneys can tap into another solution that has proved effective time and time again in getting blighted properties rehabilitated, according to Mark Adams, Receiver.
A Solution with a Track Record: Petition for Receivership Under California's Health and Safety Code
Many city attorneys may not realize that they can draft and argue court petitions to appoint a receiver if the property is in severe disrepair when standard code enforcement efforts have failed to bring the property into compliance.
The process, according to Mark Adams of the California Receivership Group, begins when persistent code violations are identified in properties with hazardous conditions, uninhabitable structures, illegal construction, or environmental risks, and the owner has failed to address them despite repeated notices or orders from the code enforcement agency.
Prior to a court petition for receivership, the property owner is provided with notice of the violations and a reasonable opportunity to rectify them. If the owner fails to act, a city attorney can
file a petition in Superior Court asking for the appointment of a receiver under Health & Safety Code §17980.7. According to Receiver Mark Adams, the petition must include evidence of the violations, documentation of efforts made to notify and work with the owner, and a proposed plan or justification for why a receiver is necessary.
A judge will review the petition and, if they find that violations exist and the owner is unwilling or unable to correct them, they can appoint a receiver. The receiver is a neutral third party with experience in property rehabilitation.
The Receiver's Role
Once appointed, the receiver has broad authority to take control of the property, secure financing or place liens for necessary repairs, oversee or contract construction and code compliance work, collect rent or manage tenants (if applicable), and ultimately sell the property (with court approval) if necessary to recover costs.
Taxpayer Funds Are Not Used to Rehabilitate Blighted Properties Under Receivership
There is no cost to taxpayers with a receivership. Mark Adams, President of California Receivership Group, explains that the receivership repairs are funded by the property itself, not by city funds or taxpayer money.
Receiverships have proven to be a highly effective legal remedy for municipalities, with city attorneys playing a central role in initiating the process and ensuring that legal standards are met.
About Mark Adams, Receiver
Mark Adams of California Receivership Group has earned appointments from 198 state and federal judges across 36 counties and 135 cities throughout California, successfully rehabilitating more than 415 properties. His proven expertise has led to expansion into Tennessee, Virginia, and Texas.
