Why the City Would Seek a Receivership

The City always seeks voluntary compliance first. In most cases, property owners address issues quickly after receiving a notice. But when problems persist for months or years and create dangerous conditions, the City must step in to protect public health and safety.

For example, the City recently petitioned the court to appoint a receiver for the property at 1150 Laurel Lane, after:

  • Nearly five years of engagement with the property owner,
  • Multiple inspections, formal notices, and repair orders,
  • Ongoing fire, structural, and life-safety hazards, and
  • A failed obligation by the owner to complete renovations or secure the site, even after the building was declared unsafe and ordered vacated.

Steps the City Takes Before Going to Court

Receivership is never the first step. The City generally follows a clear and progressive process before seeking court intervention:

  1. Notice of Violation
    The City identifies the problem and gives the owner time to fix it.
  2. Fines for Ongoing Violations
    If the issue continues, daily fines may be issued to encourage action.
  3. Order to Make Repairs
    A formal order is issued with a specific deadline for fixing the problem.
  4. Unsafe Building Notice
    The City may formally declare the building unsafe or substandard if the condition poses a risk.
  5. Vacate or Condemnation Order
    If the danger is serious, the City may require occupants to vacate.
  6. Petition for Receivership
    If other efforts have failed, the City may ask a judge to appoint a receiver.
  7. Cost Recovery: When the City or a Court appointed receiver has to step in to clean up or secure a property the costs to the public to remediate the private property will be paid by the owner or from the value of the property, either through direct billing to the owner, property liens or through a receiver, by court order.

What Happens After a Receiver is Appointed

  • The receiver gains temporary control of the property.
  • They work under the direction of the court to make necessary repairs, funded by court approved loans against the property.
  • The property owner still retains ownership, but cannot make decisions about the property during this time.
  • Once the property is safe and code-compliant, the receivership is concluded.