Celebrating Two Decades of Bringing Relief to California Communities Impacted by Nuisance Properties

California Receivership Group was founded twenty years ago to help the people and communities impacted by nuisance properties and their negative effects. These effects range from decreasing neighboring property values to compromising physical health and safety to increasing crime, extending far beyond the property line. In keeping with our mission, we wanted to celebrate our anniversary by finding a way to give back to the community surrounding our head office. Our team felt compelled to address the trash making its way onto our beaches and into our oceans.

Industry Leader: Health and Safety Receivership Used as a Remediation Remedy for the First Time

On August 2nd, we celebrated the 20th anniversary of our first appointment as receiver. On that date in 1999, a judge signed the order appointing us to address code violations at a 66-unit apartment complex in Los Angeles. Although receivership was an available remedy, listed in our state's Health and Safety Code to address substandard properties, this marked the first time it was used to tackle a nuisance abatement issue. On learning of the remedy from a UCLA professor in the early 90s, Mark Adams, founder of CRG, felt this was the answer for nuisance properties where no other code enforcement strategies had been successful. Since that first appointment, CRG has become the most experienced health and safety receiver in the state, working on over 220 projects throughout California and mentoring or training many other receivers in this field.

In the wake of a heartbreaking death, our first appointment was bittersweet

That first appointment came in the wake of a young child catching a respiratory infection at the apartment building. The infection was likely due to the deplorable conditions onsite, which included leaking plumbing and a carpet that struggled to stay dry. At 11-weeks old, the infant’s immune system was unable to fight the infection, and she tragically passed away. Her passing mobilized a coalition of organizations, including UCLA law students and one of LA's premier law firms, to act to have the dangerous Health and Safety Code violations addressed. The owner to this point had ignored code enforcement efforts to fix scores of issues; in addition to plumbing problems, the building had a broken elevator, rat and roach infestations, and an inoperable fire alarm system.

After Initial Setback, CRG Arranged First-of-Its-Kind Receiver’s Certificate Financing

Our first project was not easy, and we encountered multiple setbacks. The most pressing was the inability to find a financial institution willing to fund a Receiver’s Certificate to finance the emergency work needed onsite. In response to this challenge, we developed a financing plan that we’ve used on almost every project since. We’ve funded over $44 million in abatement work with no loss to our lenders to date.

The Los Angeles city attorney filed a criminal proceeding against the apartment owner. This culminated in his serving a 45-day jail term, which included 30 days for the perilous conditions. But the receivership, rather than the owner, remedied the hazards onsite. Experience has shown us that criminal and civil proceedings against recalcitrant owners are unlikely to secure lasting change. Through receivership, we ensured that the property was completely rehabilitated without displacing the tenants, and we enacted a plan for the long-term maintenance of the property before we were discharged.

Cleaning Up Our Local Beach

Microplastics, cigarette butts, and larger pieces of refuse are finding their way into the Pacific Ocean and endangering the wildlife we share it with. While making a small dent in this large problem, our team was able to see the effects of single-use containers on the environment, and how challenging they are to deal with when they break down into the tiny pieces that cause so much destruction to marine life. By the end of the day we had collected buckets and buckets of trash.

Organizing Your Own Cleanup

The benefits of a beach cleanup surpass the physical removal of trash; the activity encourages us to think critically about the waste we each generate. We partnered with LA Waterkeeper for our cleanup, and there are many organizations throughout California that will help if you’re considering a cleanup of your own.