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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.

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.

Health and safety violations in multifamily housing are not merely regulatory matters—they are lived experiences that impact the well-being of residents across the United States. When multifamily properties fall into disrepair, the consequences reach far beyond code books and inspection reports. Mold, vermin infestations, exposed wiring, structural decay—these are not abstract problems. They affect real people and families in real time.

Receivership petitions succeed when cities present photos, timelines, and official records showing properties pose real public health and safety risks.

It’s a common theme to see properties stuck in probate, owned by unreachable heirs, or occupied by vulnerable individuals. These properties can end up spiraling into disrepair, becoming a drain on city resources and a threat to surrounding neighborhoods. Cities can respond proactively by leveraging court-appointed receiverships, which place control in the hands of neutral professionals empowered to stabilize and restore these properties.

Nuisance and dilapidated properties often place a significant burden on public safety agencies. Fire departments responding to incidents at vacant or unsafe structures can incur thousands of dollars per call, depending on the severity and resources required. These costs cover personnel time, apparatus use, equipment wear, and liability risk. Repeated calls due to fires, squatting, overdoses, or hazardous conditions can result in annual emergency response costs of thousands of dollars in high-impact areas, overwhelming city resources that could be directed toward other areas. The receivership remedy offers cities a structured way to intervene before these costs spiral further. By appointing a receiver to handle the work under court supervision, abatement costs come out of the property’s equity rather than burdening the city’s resources or taxpayers.

Receivership is a court-ordered remedy that puts a disputed asset—be it real property or a troubled business—under the control of a third-party neutral receiver. When applied strategically, the receivership remedy can be very effective. Our team has been able to solve a wide range of complex cases that required creativity, compliance, and community-minded leadership.

Health and Safety Receiverships are a remedy for distressed properties, which are known as a public nuisance under the law. In a receivership, a receiver is appointed by the court to revitalize nuisance properties after a lawsuit has been filed against the property owner. In these situations under public nuisance law, the receiver will often work with local law enforcement and fire departments until the situation is resolved.