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The coronavirus pandemic has flooded people’s minds with unquestionable doubts and uncertainty. For most, life and work have come to a complete and unexpected halt. The economy has plummeted, forcing countless businesses to temporarily close thus leaving numerous people out of work. For businesses lucky enough to keep their doors open are suffering at the hands of a reduced workload. The pandemic has caused, and continues to cause, distressed business owners and corporate shareholders to restructure and adapt to these challenging times. Big and small companies alike are trying to avert insolvency and utilize various relief options to mitigate the hardships. Unfortunately, we fear that we are still in the beginning stages of these struggles with no definite end in sight, and the somber truth is that while some companies will sustain, many others will not. For those that cannot, a Court-Appointed Receiver can help ease the difficult process of liquidating company assets and restructuring corporate frameworks.

Health and Safety Receiverships can successfully remedy substandard commercial properties in California. Substandard commercial properties may be neglected by absentee owners or landlords causing the property to fall into distress or disrepair. Maintenance needs of substandard income-producing commercial properties are often ignored by the owner to maximize profit by minimizing expenses on needed maintenance. A Court-Appointed Health and Safety Receiver can be the solution to protect communities and tenants from substandard commercial properties.

A Health and Safety Receivership is a legal remedy to combat neighborhood blight and transform problematic properties back into safe and habitable structures. A house or building within a community may be deteriorating due to various reasons ranging from severe hoarding, contaminated or unsafe living environments, or owner abandonment. Deteriorating properties are usually produced because no responsible party is willing or able to address the problems on the property. Whether due to an uncooperative property owner, quarreling heirs, disputes regarding title, or an owner that cannot be located, the structure or dwelling is poorly maintained making it an eyesore and hazard to the community. When a property is in severe disrepair and a danger to its tenants or neighboring residents, the property will affect the entire neighborhood.

Health and Safety Receiverships come in many shapes and sizes. Health and Safety Receiverships are implemented for distressed properties which include packrat/hoarding properties, substandard motels or apartments, fire damaged properties, illegal construction or habitation, drug/slum houses, and deceased owner or abandoned properties. Properties subject to Health and Safety Receiverships are often referred to the City by local fire departments or law enforcement who are routinely called to these properties.  A Health and Safety Receiver can be appointed by the Court to remedy health and safety hazards of substandard properties which have been neglected by property owners. A Court-Appointed Health and Safety Receiver will determine the proper course of action on a case by case (property by property) basis and will follow established policies, procedures and guidelines for each specific property or situation. A Receiver is responsible for general repairs and maintenance for the property and for ensuring that the property is brought into compliance with State and local laws.

Health and Safety Receivership actions often deal with homeowners who are packrats/hoarders, elderly, or mentally/physically disabled. These types of homeowners may not be able to properly maintain and care for their house, which leads to loss of control of the property and the commencing of a receivership action. A Court-Appointed Health and Safety Receiver is temporarily appointed by the court to address the health and safety concerns of substandard properties that have been neglected by property owners. A Health and Safety Receivership can successfully rehabilitate distressed properties when the homeowner is unwilling or unable to remedy code violations themselves.