Blog

Health and Safety Receivership in Arizona: An Evolving Tool for Property Remediation

old-abandoned-motel-sign-in-arizona-picture-id1150592141?b=1&k=6&m=1150592141&s=170667a&w=0&h=pcUBhqBUh3vDTeVmGv9d3e5wb8xgfKuLPS6hsMrlMmY=

While there is no specific health and safety receivership statute in Arizona, courts have shown flexibility in using existing receivership laws to protect public safety.

As Arizona communities continue to grapple with the dangers of substandard buildings, neglected assisted living facilities, and chronically blighted properties, municipalities are turning to a powerful legal remedy: receivership. Though Arizona doesn’t yet have a dedicated “health and safety receivership” statute like California, its courts and legislators are increasingly using receivership powers to address serious threats to public welfare.

Legal Foundation for Health and Safety Receivership in Arizona

Arizona law allows courts to appoint receivers under certain statutes, even though there is no specific language for “health and safety receivership”:

  • A.R.S. § 12-1241 gives courts the authority to appoint a receiver to preserve or protect property and the interests of parties involved. This general statute serves as the legal basis for many receivership appointments, including those addressing health and safety concerns.

  • A.R.S. § 46-455(G) specifically allows the court to appoint a receiver for facilities that endanger vulnerable adults. This provision has been instrumental in cases where assisted living centers and similar properties have fallen into serious disrepair, threatening the safety of residents.

These statutes provide a flexible framework that courts can adapt to protect the public from unsafe conditions tied to mismanaged or abandoned properties.

Case Spotlight: Heritage Village Receivership 

A recent example demonstrating the application of these laws is the Heritage Village case in Mesa, Arizona. In early 2024, the Arizona Attorney General filed a petition to place this assisted living facility under receivership due to egregious violations of care standards that endangered residents. The court agreed and appointed a receiver to take control of the facility’s operations.

This marked a pivotal moment, as it reinforced the court’s willingness to intervene swiftly when public health is at risk—particularly in facilities housing vulnerable populations.

Source: Arizona Attorney General Court Filing: https://www.azag.gov/press-release/attorney-general-mayes-sues-heritage-village-assisted-living-asks-court-take-control?utm_source=chatgpt.com

 
Legislative Developments: A Step Toward Formalization

Arizona lawmakers have begun recognizing the broader utility of receivership beyond traditional financial cases. In early 2025, House Bill 2915 was introduced to allow school districts to be placed under court-appointed receivership in cases of gross financial mismanagement.

While HB 2915 focuses on public education, its underlying principle—the state stepping in to protect the public interest when institutional management fails—sets a precedent for expanding receivership use across other sectors, including public health and safety enforcement.

Source: HB2915 on LegiScan: https://legiscan.com/AZ/text/HB2915/id/3111500

Financing Property Rehabilitation 

Arizona statutes also allow receivers to prioritize payments for necessary repairs using income from the property. This is crucial for situations where owners abandon deteriorating buildings that create fire hazards or attract crime. By empowering receivers to manage property finances and rehabilitation, the state enables real progress on even the most distressed sites—without burdening public budgets.

 
What’s Next for Arizona?  

Though not yet as robust as California’s health and safety receivership framework, Arizona’s legal environment is moving in that direction. Courts have demonstrated flexibility in using existing receivership laws to protect public safety, and legislators are showing interest in codifying the remedy for broader application.

Municipalities and enforcement agencies in Arizona can:

  • Proactively identify high-risk properties

  • Explore legal partnerships with experienced receivers

  • Educate staff and local stakeholders on how to initiate a receivership action under current laws

Receivership is a vital tool in Arizona’s effort to address neglected and hazardous properties. Whether it’s a fire-damaged building, a failing assisted living center, or a long-abandoned motel, courts and lawmakers are increasingly embracing this remedy to protect communities. As legislative support grows, Arizona could soon develop its own formal health and safety receivership laws—bringing structure and strength to this already promising strategy.

Contact Us

If you find yourself in a neighborhood that is experiencing this problem, our receivers can help guide you on how to legally resolve the issue. Whether you’re located in California, Arizona, or Nevada, we specialize in the health and safety receivership remedy, and know the ins and outs of this powerful tool to address and remediate substandard housing problems. Contact us today to discuss your concerns.


Contact Us

  • There are no suggestions because the search field is empty.

Categories

See all

Recent Posts

favicon