South Guilford News

Since the City’s pilot Vacant Housing Receivership Program has been up and running, no cases have gone to court. City officials say that is a very good thing.

The 20 properties initially selected for this program in 2020 have been rehabilitated by their owners and returned to the community as safe and affordable housing. This was and still is the program’s goal.

Vacant, dilapidated, or deteriorating structures qualify for the City’s program after a code official determines a property unfit for human habitation and the decision is upheld by the Greensboro Minimum Housing Standards Commission (MHSC).

If the MHSC upholds the code official’s decision, it issues an “Ordinance to Repair” to the property owner and directs City staff to use receivership if the property remains out of compliance 90 days after the ordinance was issued.

A Guilford County Superior Court judge appoints receivers to carry out the needed repairs or demolition of an unsafe structure.
Since 2020, City staff have qualified five receivers based on the NC General Statutes. Each is prepared for a court appointment when needed and is a certified M/WBE business.

A receiver prepares a “Plan of Action” outlining the work needed to bring a structure into compliance and a timeline for the project’s completion. This plan is presented to a Superior Court judge during a hearing.

According to the City’s Neighborhood Impact Manager Troy Powell, a receiver has yet to present a Plan of Action to the court.

“We often seem to be a litigious society,” says Powell, who established and runs the receivership program. “But this pilot program has shown us owners of abandoned, dilapidated and deteriorating properties will bring them up to the minimum housing standards when they face the real risk of losing control of their properties otherwise.”

After the City notifies property owners it is proceeding with the assignment of receivership, owners quickly make the necessary repairs to meet minimum standards, which Powell says is how the City’s Housing and Neighborhood Development Department envisioned it would happen.

If a court hearing is required and a qualified receiver is appointed, the receiver gains control of the property and is authorized to bring it into compliance. After the rehab period, the receiver can rent the property to a tenant and has exclusive rights to collect all rents and income from the property. That money is used to pay for current operating expenses and repayment of outstanding rehabilitation or demolition expenses.

The receiver can maintain control of a property for two years after rehab is completed and may place the cost and fees incurred as a lien against the property. If the income collected is not enough to reimburse the receiver for the liens, and the owner fails to pay the liens when so ordered by the court, the receiver can foreclose on the lien or accept a deed in lieu of foreclosure.

The court has the right to order the sale of the property to compensate the receiver’s liens and unpaid taxes. Any additional profits from the sale are returned to the property owner.

According to Powell, several NC cities have reached out to Housing and Neighborhood Development about receivership, expressing interest in creating a similar program. 

Original source can be found here