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.
As an example, we consider California’s housing shortage. The California Housing Partnership estimates a deficit of 1.3 million affordable units for low-income renters. Compounding the crisis, over 538,000 homes have inadequate plumbing or heating systems, while 1–1.5 million homes report pest infestations or water leaks. These unsafe conditions increase health risks, create environmental hazards, and consume significant municipal resources.
California’s Laws Protect Tenants from Slum Housing
In California, Health & Safety Code §17980.7 provides a pathway for cities and counties to petition the court to appoint a receiver when conditions at multifamily buildings are substandard and property owners are unresponsive or uncooperative. In many cases, this tool is the only effective remedy after repeated citations, fines, or enforcement actions have failed. Receivership allows for court-ordered intervention to stabilize the property, collect rents, correct the violations, and—importantly —preserve occupancy for current tenants when feasible. In drastic cases, the appointed receiver will coordinate tenant relocation, ensuring a safe living environment while critical repairs are made.
Other States are Following California’s Blueprint
Other states are following California’s lead. Nevada’s Assembly Bill 211 (2025) will take effect on October 1, 2025, and expands the use of receivership for public nuisance and substandard conditions, specifically for multifamily housing. The law allows local governments to request court intervention when health, safety, or habitability issues persist. AB211 emphasizes public safety through health and safety receivership in Nevada while prioritizing the preservation of housing and tenant rights in cities and rural counties alike.
Similarly, Colorado’s Senate Bill 25-020 (2025) modernizes the state’s receivership framework and authorizes courts to appoint receivers in civil actions involving substandard multifamily rental properties. The bill underscores the importance of maintaining habitable housing and provides clear guidance for courts, owners, and receivers working to correct dangerous conditions. Like California’s model, it allows receivers to collect rent, make repairs, and provide written updates to tenants throughout the rehabilitation process.
These legal frameworks reflect a growing consensus: receivership is not just a remedy for code enforcement – it is a mechanism to protect housing stability, ensure public safety, and prevent the erosion of affordable housing stock.
In multifamily cases, the impact of health and safety receivership is immediate and measurable. Properties that have been neglected for years can be brought into compliance within months. Cities regain control over chronic problem sites. And most importantly, tenants regain safe, livable conditions without the fear of becoming homeless.
As more jurisdictions embrace receivership as a public safety and housing preservation tool, the focus must remain on what’s at stake: families, homes, and communities. The legal authority is there–either as an already-established remedy, or as a blueprint for other cities to replicate in their own communities.
How Health and Safety Receivership Works
When traditional code enforcement efforts fail, the receivership remedy allows courts to appoint a neutral third party—a receiver—to take control of substandard multifamily properties. This legal mechanism is designed for situations where traditional enforcement fails and provides:
|
Step |
Description |
Benefit |
|
Court Appointment |
Judge appoints a neutral receiver |
Legal authority to act on the property |
|
Immediate Action |
Remediation and security begins promptly |
Reduces ongoing health and safety risks |
|
Funding Mechanism |
Liens on property secure funds through Receivership Certificates |
Costs repaid via sale or refinancing, not taxpayers |
|
Scope of Work |
Security, structural repairs, environmental hazards, code compliance |
Restores habitability and compliance |
|
Accountability |
Receivers provide detailed reports to the court and obtain approval from a judge throughout the process |
Ensures transparency and trust with all stakeholders |
This framework addresses immediate hazards, mitigates long-term damage, and helps preserve housing affordability.
FAQ: Health and Safety Receivership
Q: What types of properties qualify for receivership?
A: Properties that pose a significant threat to public health or safety, often multifamily buildings with chronic code violations.
Q: Who appoints the receiver?
A: A court judge appoints a neutral receiver to act on the property’s behalf.
Q: How is remediation funded?
A: Funding comes from private sources through liens placed on the property, which are repaid upon final sign-off once the property is brought into compliance. This can be done through repayment by the property owner, sale, or refinancing—not through taxpayer dollars.
Q: How long does a receivership last?
A: Duration depends on the property’s condition and remediation needs, with the goal of restoring compliance as efficiently as possible.
Q: Why is receivership important?
A: It provides an effective, structured solution to restore substandard multifamily properties, protecting tenants, neighborhoods, and affordable housing stock. Oftentimes in receivership, the property is not only brought back into compliance – it is also improved in many areas, which positively contribute to property values.
The Griswold Receivers Way: Expertise in Restoring Safe, Habitable Housing
Griswold Receivers specializes in health and safety receiverships, guiding substandard multifamily properties from neglect to compliance. Our approach ensures that buildings are rehabilitated efficiently, transparently, and in full compliance with legal and safety standards.
Our Approach Combines:
- Expertise: Skilled professionals in both property rehabilitation and receivership law.
- Creativity: We believe there is no problem too complex to solve.
- Drive: We possess a relentless determination to carry projects across the finish line and restore safety and compliance.
- Transparency and Integrity: Regular updates and detailed reporting for stakeholders.
- Community Focus: Restores safe, habitable units while supporting affordable housing preservation with an empathetic approach.
If you’re facing challenges with substandard multifamily properties, Griswold Receivers can provide the guidance and execution necessary to restore safety and compliance.
Contact us today to discuss how our receivership services can protect tenants, revitalize properties, and help communities thrive.
.
