San Bernardino Launches Property Receivership Program

A home on Bangor Avenue in Highland will be the first of several properties dubbed substandard by the City of San Bernardino to obtain receivership and rehabilitation actions after San Bernardino Superior Court Judge Donald Alvarez last month granted City Attorney Gary Saenz's first motion for the appointment of a receiver over the property to allow for rehabilitation and resale of the property. Rehabilitation of the the three-bedroom, two-bathroom single-story home at 2942 Bangor Ave. was slated to begin Dec. 1 with a renovation completion date of May 29, 2015, according to a city release issued through Westbound Communications. The home posed several "significant health and safety risk(s) to occupants and the neighborhood," the release stated, with over four years of failure to maintain the property by its owner, a trust and occupants, the release states. City municipal and fire code violations including debris blockage, improper storage, exposed electrical wiring and ceiling holes were cited. Numerous notices of violations and administrative citations went unanswered, according to the release. The project to receive and then sell identified blighted properties is known as Receiverships Empowering Neighborhood Upkeep (RENU San Bernardino). Saenz said in the news release, "Receivership is a significant step in helping the city increase its property values, reduce crime rates and protect residents by eradicating blighted properties." RENU San Bernardino is a collective effort between the City Attorney's Office, the San Bernardino City Police Department and Code Enforcement, Saenz said. "RENU San Bernardino will help better our neighborhoods and improve overall quality of life for our residents,” he said. The California Health and Safety Code mandates that when a property owner fails to bring identified substandard properties into compliance after being notified of the substandard conditions, the city may file a motion to have a receiver take control of the property, rehabilitate any existing structures and resell the property to a party who will make beneficial use of the land. A court-appointed receiver assumes responsibility of the property after a motion to appoint a receiver has been granted by the court. A receiver's duties include taking complete possession of the property, maintaining and managing the property and paying all operating expenses, taxes, insurance and utilities. Receivers may collect rents if there are any rental units on the property, and may use any income from the property to pay the costs of rehabilitation and operation. Receivers may also obtain court-approved financing to completely rehabilitate the property. Occupants at the property may be temporarily or permanently relocated to implement the receivership plan; after rehabilitation, the property is sold and proceeds from the sale are used to pay the costs of initiating and completing the receivership action. Remaining proceeds are used to pay off existing loans and any remainders are returned to the previous owner.