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In August 2023, the City of Citrus Heights filed a petition in Sacramento County Superior Court to appoint a receiver for a severely substandard single-family home. This case highlights how cities across California, Arizona, Nevada, and beyond can use Health & Safety Receiverships to address dangerous, abandoned, or uninhabitable properties that threaten public health and neighborhood stability.

Background: Years of Neglect and Noncompliance

The subject property was built in 1986 and had a long history of code violations. Since 2021, the Citrus Heights Code Enforcement Division documented numerous issues including overgrown vegetation, junk and debris accumulation, inoperable vehicles, lack of utilities, and unauthorized occupancy.

Ownership of the property became unclear after the owner-in-trust passed away in 2020. His daughter continued to occupy the home but failed to provide documentation or initiate a probate proceeding to legally transfer ownership.

Fire Damage and Red-Tagging

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On August 3, 2021, a fire—allegedly caused by the occupant—seriously damaged the property, rendering it uninhabitable. The City immediately red-tagged the structure and later reissued the designation in October 2022 due to worsening conditions and lack of utilities.

Despite multiple notices and offers of assistance, the occupant refused to vacate or bring the property into compliance

Legal Basis for Receivership: California Health & Safety Code

To remedy the dangerous conditions, the City petitioned for a court-appointed receiver under California Health & Safety Code Sections 17980.6 and 17980.7(c). The petition satisfied all statutory requirements:

• The property had been declared substandard

• A formal Notice to Abate had been issued

• More than six months were given for voluntary compliance

• All other enforcement efforts had been exhausted

A receivership was presented as the only viable path to rehabilitate the property and restore neighborhood safety.

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Court-Appointed Receiver: Restoration Plan for the Property

Following the Court’s October 30, 2023 order, Richardson Griswold was appointed as receiver. His initial inspection revealed severe fire and structural damage, boarded-up access points, extensive debris and refuse, and ongoing safety risks. To address these conditions, the Receiver presented three possible options: full rehabilitation of the structure, demolition, or an as-is sale to a qualified buyer. 

Receiver’s Recommendation: As-Is Sale for Best Outcome

After reviewing cost estimates and potential returns, the receiver recommended an as-is sale. This option offered the highest net recovery after expenses for stakeholders, while also enabling swift transfer of responsibility to a new, capable owner.

To proceed, the Receiver requested additional funding and court approval to secure, market, and sell the property.

Sale and Compliance Agreement

The Court authorized the property to be listed for sale. A buyer was identified and entered into a compliance agreement with the City of Citrus Heights, agreeing to:

• Rehabilitate the property under receiver supervision

• Cure all code violations

• Obtain City sign-off upon project completion

In less than a year, the property was stabilized, violations resolved, and public safety restored.

Conclusion: A Roadmap for Other Cities

The saga of this property demonstrates the full lifecycle of a court-appointed receivership—from emergency intervention to restoration and closure. What began as a hazardous, fire-damaged property posing serious health and safety risks was ultimately transformed, and safety was restored to the community.

With the property restored and all code violations resolved, the receivership now awaits final court approval to close the matter. The case serves as a model of how cities can leverage the Health & Safety Receivership process to restore unsafe properties—and a reminder of the complex legal steps required to see such efforts through to completion. 

Cities facing similar challenges can look to this example as a blueprint for using receiverships to reclaim unsafe properties, enforce building codes, and promote safe, livable communities.

Specialization in Nuisance Properties

At Griswold Law, our receivers specialize in navigating various types of receiverships across California, Nevada and Arizona. Our devoted team has decades of experience implementing the receivership remedy.  

Contact us today. Whether you are a creditor seeking to protect your interests, a city tackling a nuisance property, or a business facing operational challenges, we are here to help you explore your options and achieve the best possible outcomes.