Receivership is Used to Address Home with Unpermitted Construction
CRG was appointed to abate the nuisance conditions at this single-family home after multiple instances of unpermitted construction were discovered along with other dangerous conditions so severe that the municipality issued a red-tag for the property. Yet, the owner and their associates ignored the red-tag and continued to reside in the property, using a generator and unsafe electrical wiring to get power inside.
Photos of the Property Prior to Receivership
CRG Works to Find the Best Solution for All Parties
As a third party brought into a case to carry out the orders of the court, a receiver’s job is to find the best solution for all parties and to balance the needs of the owner with the health and safety of the surrounding community.
Wary of the existing encumbrances against the property, it became clear that if the receivership carried out the abatement work the owner would not have the means to stay at the property, as was her wish. We worked with all parties and the court to find a plan that would both remedy the dangers onsite as well as allow her to remain in her home. Our initial plan relied on a local contractor generously offering to go out of pocket for the materials and time to complete the repairs, with the petitioner waiving their legal fees, and CRG keeping our involvement to a minimum. Unfortunately, that arrangement soon became unworkable. The contractor informed us that they no longer felt safe at the property where the owner and her associates remained, that their tools and materials went missing, and that the home was continually broken into.
After Setback, CRG's Team Renovates the Property and Remedies All Code Violations
We ultimately had to request an emergency motion to fund the abatement work and relocate the owner to safe, alternative housing while the construction work was carried out by our team. With it unlikely that the owner would be able to remain at the property, the goal was to maximize the sale proceeds to try and pay the liens and something to her. We brought in a renovation specialist to find ways to add value to the property and maximize the eventual sale proceeds for the owner. Once the municipality signed off on our team’s work and confirmed that all Health and Safety Code violations had been addressed, the court approved a sale of the property to a new buyer committed to maintaining it for years to come and the remaining sale proceeds were distributed to the owner.
