The Health & Safety Receivership process is highly effective because once a receiver is appointed, the property is placed under the control of the court.   The court-appointed receiver becomes the court’s instrument to effectuate compliance with health and safety codes, state and municipal housing codes, building codes, and municipal ordinances.   The receiver develops a “Rehabilitation Plan” for the court’s approval to address the property’s offending issues in the most economically viable way.  Part of the Rehabilitation Plan should include a proposal on how to pay for the plan and related costs of operating the receivership estate.  Under California law, the court has much latitude to grant receivers the authority needed to address the issues at hand, including authorizing significant measures to fund the Rehabilitation Plan. 

The receivership assets are first used to pay the receivership estate’s debts, including any rehabilitation.  This means the receiver will first look to the property to fund any Rehabilitation Plan, using any equity in the Property to pay for the abatement and corrections to make the property safe. These steps are carried out under orders issued by the court.

Receiverships are most effective when a receiver has the necessary skills and experience to quickly address the numerous and varied problems associated with nuisance properties.  An efficient receivership is often the most successful because it not only keeps costs down but also allows it to be nimble to adjust to changes/surprises.