Municipalities of all sizes across the United States grapple with health and safety issues related to real property. The challenges and dangers posed by nuisance properties are generally similar, as are the consequences of neglecting them. However, the approach taken by each state to address these issues varies. For example, the Health and Safety Receivership remedy in California differs from the remedy in Nevada or in Arizona.
Many states permit and advocate for the appointment of a receiver under specific conditions. Other states have more restrictive measures regarding third-party interventions. Some states only allow receiverships in relation to certain types of properties. This overview will explore how some state statutes affect the involvement and effectiveness of health and safety receivers.
What is a Health and Safety Receivership?
A health and safety receivership is a legal mechanism whereby a court appoints a third party (the receiver) to manage a property that has become a nuisance due to neglect, criminal activity, or other safety concerns. The receiver is responsible for rehabilitating the property and, in some cases, collecting income from it to cover the costs of repairs. Cities and counties are able to utilize the expertise of the receiver to bring the property back up to code expeditiously, thereby redirecting resources for other pressing concerns while the receiver supervises the rehabilitation of the property at the property’s expense. The result restores safety, confidence, and value to communities
Key Aspects of State Receivership Statutes
While many states have general receivership laws, some include specific provisions tailored for properties that pose health and safety risks. While this post is not meant to be entirely exhaustive, we will highlight some interesting key aspects found in various states:
1. Statutory Authority
States have designated statutes that delineate when and how a receiver can be appointed. Most states allow both attorneys and non-attorneys to act as receivers. By contrast, in Oregon, there are limitations – an appointed Receiver must be a housing authority, an urban renewal agency, a not-for-profit corporation focused on housing improvement, or a designated city or county agency responsible for property rehabilitation. Regardless of who is appointed, all appointments of and actions by receivers are authorized and supervised by the court.
2. Priority of Receivership
Some states grant priority payment status to receivers, enabling them to recover costs from property income before most, if not all, other creditors. To name a few, Arizona's receivership statute allows priority payments from property-generated revenue but has exceptions for taxes. North Carolina and New York also permit tax payments to take precedence over receivership costs. Notably, California’s receivership statute allows for remediation loans by receivers appointed under Health and Safety Code section 17980.7 to gain priority over all existing private liens despite being established after such liens. This has made health and safety receiverships in California to be a particularly effective tool state wide, and a blueprint for other states who are looking to expand their laws governing receiverships.
3. Types of Properties Covered
In California, recently-enacted SB1465 clarifies the definition of "substandard building" to encompass all types of buildings, regardless of zoning or approved uses. This significant clarification empowers local governments to address health and safety issues from a broader perspective. Elsewhere, Arizona has specific laws targeting crime or nuisance properties to prevent abandoned buildings from becoming centers of illegal activity. Similarly, Iowa's statutes regarding receivership focus on abandoned or unsafe building abatement.
4. Additional Relevant Statutes
Many states supplement general receivership statutes with additional laws addressing matters like mortgage protection and property maintenance. For example, Arkansas includes provisions designed to protect mortgage interests during receivership proceedings. Mississippi laws applicable to receivership are governed under public utilities and carriers, and mainly apply to neglected utility services such as water, sewer, and electric. Each state operates under a different body of law that governs the receivership process, determining which types of properties are eligible for receivership.
5. Introduction of New Legislation
In February 2025, Nevada introduced Assembly Bill 211 which amends existing provisions related to substandard properties to permit the appointment of a health and safety receiver. Currently, local governments have limited options, such as imposing fines on property owners or shutting down buildings, which only exacerbate the housing crisis. AB211 draws inspiration from successful legislation in 20 other states and establishes a process for holding property owners and landlords accountable. If the responsible party does not respond within a reasonable amount of time, municipalities may seek a court order, allowing the district court to appoint a health and safety receiver. This new piece of proposed legislation is an important advocate for health and safety receivership in Nevada.
Why These Laws Matter
Understanding the differences in health and safety receivership statutes across states is crucial for legal professionals, property owners, and community advocates looking to make a positive change. Whether dealing with abandoned homes, crime-ridden properties, or general neglect, these laws provide a window into how states navigate their own unique challenges surrounding the effects of substandard properties on community safety.
Contact Griswold Law today to discuss the benefits of using the health and safety receivership remedy.
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Contact us today to discuss any potential nuisances your community is facing, from California to Arizona and Nevada and beyond.
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