Court Appointed Receivership Proves to be a Solution to Tackling Lawless Mobile Home Park
A menace to the local community, this 52-unit mobile home park was left to rot by those who were legally responsible for it, including its owner and the lenders who financed it. Years passed where the park existed in anarchy, with no one in place to ensure it was operating in compliance with local and state health and safety laws. During this time the park subsisted under perilous conditions, which endangered the lives of residents and the surrounding community. The onsite violations of health and safety codes were so severe that the park lost its operating permit, yet occupants continued to live in unsafe, dangerous and unregistered units onsite, in violation of multiple laws.
The lack of oversight onsite allowed unauthorized occupants to take advantage of their peers and illegally charge rent.
Called “rent skimming”, an individual onsite was criminally profiting from the dire situation by demanding and collecting payments from fellow occupants without paying utility bills, property taxes, or any other operating expenses to ensure the smooth and safe functioning of the mobile home park.
Receiver Appointed to Reduce the Risk of Wildfires in a Community Threatened by Them
The biggest issue at the park was the risk of fire, which was exacerbated by the large accumulation of junk and debris scattered throughout it, the unpermitted wood-burning appliances residents kept in their units, the fact that residents were pirating electricity, and the overgrown vegetation onsite. Considering the park’s location in a county that is at risk of wildfires and which does not have a full-time fire department, since fires are addressed by heroic volunteers, a fire at the park could have caused catastrophic damage.
California Receivership Group Works Hard to Help Unauthorized Occupants Find Alternative Housing
Upon our appointment as the Receiver of this property by a Superior Court Judge, we immediately acted to take control of the perilous situation. In less than a month we completely shut down the park. During this time, we relocated individuals occupying thirty of the units onsite. Although it was not required, as they were not lawful residents, we informed occupants of the facts of the situation and made sure they were given a reasonable amount of time to find alternative housing. Acting in the most humane way possible to reduce the disruption caused to people living at receivership properties is an imperative aspect of how we do business. We were able to provide occupants with funding to help them take their next steps, and we spoke to many of them individually to assess their specific needs and determine what other resources our staff could apply to assist them.
The Immediate Positive Effects of Receivership and the Next Steps for this Property
We have been informed by the Sierra County Sheriff that there has been a dramatic drop in crime in the area since California Receivership Group was appointed as the Receiver of this property. Where local police used to have to come and arrest people virtually daily, there have been no reported arrests since we secured this property and they have not had to respond to any calls thus far in 2018. We have begun the process of removing trash and debris from the property and once we have finished clearing the park, we will determine what the best step forward is for this unique property.
