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Construction done without the proper permits continues to be one of the most common reasons cities and counties turn to health and safety receiverships. What begins as a seemingly small, well-intentioned improvement—a room addition, a converted garage, new plumbing or electrical—can quickly escalate into a serious safety concern when it’s performed outside the permitting process.

On January 1, 2026, Illinois will implement the Illinois Receivership Act, a new law that modernizes how commercial receiverships are appointed and administered. The Act creates a streamlined, uniform process for protecting, managing, and selling distressed assets—offering creditors faster, clearer remedies through receivership services in Illinois.

Across the nation, millions of renters live in units that fail to meet basic safety and health standards, intensifying an already critical housing shortage. Aging buildings, deferred maintenance, and chronic code violations create environments that endanger tenants while constraining the state’s limited affordable housing supply. Substandard multifamily properties not only threaten residents’ well-being but also strain the local governments responsible for enforcement. Health and safety receivership offers a structured, legal solution to restore these properties efficiently, protecting tenants and preserving housing stock.

Health and safety receivers have many tools available to them to aid in the rehabilitation of nuisance properties, but arguably nothing is more important than the availability of super-priority funding. Though super-priority liens have been authorized by courts in California since at least 1915 (Title Ins. & Trust Co. v. California Development Co. (1915) 171 Cal. 227), the 2019 case of City of Sierra Madre v. SunTrust Mortgage Inc. is a landmark development, because it brings this authorization into the 21st century by explicitly reiterating the availability of super-priority funding to receivers.

For nearly a decade, the City of Banning, CA had to endure the challenges brought on by six unfinished commercial buildings spread over 9 acres of land located just off the 10 Freeway.

Abandoned and blighted properties are a difficult reality for countless communities. If these problem properties are not dealt with quickly, they can become a perfect environment for criminal behavior, health risks, nuisance animals and pests, and fire. Sometimes, a property has such extensive damage that demolishing the existing structure so something better can be built in its place is the most prudent path forward.

Municipalities of all sizes across the United States grapple with health and safety issues related to real property. The challenges and dangers posed by nuisance properties are generally similar, as are the consequences of neglecting them. However, the approach taken by each state to address these issues varies. For example, the Health and Safety Receivership remedy in California differs from the remedy in Nevada or in Arizona.

Partition referees play an important role in California’s real estate industry. However, not everyone knows what the partition remedy is or how it works. Understanding this useful tool is the first step in utilizing it effectively to solve conflicts and protect client assets.