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For years, California’s cities and counties have faced a conundrum when attempting to have a receiver appointed for substandard properties. Previously, the California Health and Safety Code § 17980.7(c) required an enforcement agency to provide a “3 Day Notice” to any property owner that they were going to petition the court for the appointment of a receiver.

Nuisance properties are a problem across all communities–decreasing property values, increasing crime rates, and posing a risk to the health and safety of property occupants and others in the neighborhood.

Abandoned properties don’t resolve themselves. California has several laws governing the management of distressed properties, including the role that court-appointed receivers can play in the rehabilitation of such properties. A court-appointed receiver is a neutral third party whose role it is to manage real property that is in distress or disputed between multiple parties.

California Health and Safety Code § 17980.7(c) permits a judge to appoint a health and safety receiver in circumstances that warrant it. Specifically, the health and safety receivership remedy allows a receiver to take over real property that has become unsafe or hazardous due to abandonment, code violations, hoarding, illegal conversions, etc.

As we approach the end of 2023, there might be questions about the relevance of recently passed laws affecting code enforcement in the upcoming year. For those in the legal industry and/or involved in a receivership matter, it’s important to keep an eye out for changes to California receivership laws. In this article, we’ll highlight potential updates to current laws, and how it may affect code enforcement and the receivership remedy.

Court-appointed receivers are a valuable asset to the California court system. Litigants in a variety of legal conflicts may benefit from the appointment of a receiver. But first, parties must determine whether the receivership remedy is appropriate under the circumstances. Because receivers are responsible for carrying out the orders of the court, their role is incredibly valuable to litigants and their attorneys who are worried about uncooperative, absent, or non-compliant parties and stakeholders.