None
Purpose
Provide cities and towns with another tool to rid the community of hazardous properties and improve the economic conditions needed for job creation.
Use
The DBA can be used only after a town has exhausted its locally-adopted code enforcement procedures with no satisfactory result.
Cannot be used on
  • Owner-occupied property
  • Apartment buildings with up to four units if at least one is occupied
  • Property in foreclosure or bankruptcy
Who can be a receiver
  • An entity or individual with court-approved credentials
  • For historic properties, a nonprofit with historic preservation experience
  • Contractor with state-required credentials
Process
  1. The city provides a 60-day notice to property owners/lien holders before petitioning a court to appoint a receiver. Service via mail (or publication if no mail) and filing the suit against a property owner are required.
  2. Court appoints receiver for no more than two years or court-ruled period of time.
  3. Receiver files plan of action with court and updates every 45 days or more as determined by court.
  4. Receiver rehabilitates or demolishes property. If demolition is needed, court must hold a hearing and provide notice of hearing to owners/lien holders
  5. After rehabilitation is completed, receiver provides 90-day notice to owner to pay receiver's costs and fee.
  6. If owners do not pay receiver's costs and fee after 90-day notice, the receiver can ask court to order sale of the property.
  7. Net proceeds from a sale go to owner, and the owner retains ownership after sale or satisfaction of receiver's costs. If no net proceeds, receiver retains control of property until costs and fee are satisfied. Receiver may use costs as credit toward purchase.
 Owner/lien holder protections and due process provisions
  • Owner receives multiple notices and opportunities to take corrective actions during city/town's initial code enforcement process
  • 60-day notice required before city petitions court for a receiver
  • Report required to be submitted by receiver to the court prior to work beginning
  • Receiver must provide the court with an update on work every 45 days
  • 90-day notice required to owner that receiver desires to terminate the receivership and owner should pay receiver's costs and receivership fee
  • Lien holders can petition court to be receiver at any time during the process
  • Owner can pay receiver costs and fee then retain ownership of the property after receiver has petitioned court to terminate the receivership.
  • Net proceeds from the sale of property is distributed to owners and lien holders
 Action needed
  • Ask for more sponsors.
  • Show legislators a specific building(s) where this legislation could help.