12/18/2001 RA RPT 17 - Laserfiche WebLink

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People Serving People CITY OF RIVERSIDE CITY/AGENCY MEMORANDUM Riverside AII-Amedca City HONORABLE MAYOR AND CITY COUNCIL REDEVELOPMENTAGENCY DATE: December 18, 2001 ITEM NO: 17 SUBJECT: RETENTION OF BEST BEST & KRIEGER LLP FOR LEGAL REPRESENTATION FOR THE APPPOINTMENT OF A RECEIVER TO OVERSEE THE REHABILITATION OF SUBSTANDARD PROPERTY IN THE DOWNTOWN AREA BACKGROUND: On March 13, 2001, the City Council authorized the Code Compliance Department and the City Attorney's Office to utilize the appointment of a receiver as a remedy for problems of substandard housing. Staff believes that this remedy is a valuable tool to remedy the problem of such housing in the Downtown area and the Code Compliance Division has now identified at least one property that is suitable for the use of this remedy. Staff now seeks authorization to hire the law firm of Best Best & Krieger to implement this remedy in the Downtown area. CURRENTISSUE: Briefly, this remedy is available under Health and Safety Code sections 17980 et seq., which authorize the court to appoint a receiver to oversee the rehabilitation of substandard properties. Prior to seeking the appointment, the municipality must first issue a notice to the property owner of the violations and requesting correction. The notice must contain two things: (1) that the building is either a nuisance or is maintained in violation of the State Building Standards Code; and (2) the violations are such that "the health and safety of residents or the public is substantially endangered." If the owner does not make the necessary repairs after receiving the notice to correct, the public entity then requests that the court appoint the receiver. The receiver is empowered to take control of the property, collects any rents, and makes any necessary repairs. The receiver, with court approval, can borrow money to rehabilitate the property. After the property is rehabilitated, the receiver provides a full accounting to the court of all of the receiver's costs, including any repairs, loans and the receivers's services. The court charges the total cost as a lien on the property. Such liens take priority over any other loans or charges against the property, with the exception of tax liens. The public entity can also request that the court award its attorneys' fee against the property owner, which also constitutes a lien against the property, with the same priorities. 17-1