Judge: Thomas Falls, Case: 22PSCP00344, Date: 2022-09-07 Tentative Ruling

Case Number: 22PSCP00344    Hearing Date: September 7, 2022    Dept: R

 CITY OF AZUSA vs VICTOR OLMEDO, et al (22PSCP00344)

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CITY OF AZUSA’s MOTION FOR APPOINTMENT OF A RECEIVER

Tentative Ruling

CITY OF AZUSA’s MOTION FOR APPOINTMENT OF A RECEIVER is GRANTED.

Background

On July 11, 2022, Petitioner City of Azusa (“City”) filed its RECEIVERSHIP PETITION (Health & Saf. Code, § 17980.7(c)) on the basis that Respondents Victor Olmedo’s and Maria Olmedo’s (“Respondents”) property is subject to hazardous and substandard conditions. The conditions include a “large accumulation of junk, trash, debris, occupational materials, and personal items in and around the property. The Subject Property is extremely dilapidated due to a complete lack of maintenance and contains multiple other substandard nuisance conditions, all of which have resulted in the structure being uninhabitable and placing any occupants and the neighbors’ safety at risk.”

On August 13, 2019, the property was deemed a public nuisance.

On August 15, 2019, the City sent Respondents a Public Nuisance Determination letter (“Determination Letter”) ordering them to “obtain the required City business license for the home occupation business remove all debris out of public view and in a manner so as not to create a fire hazard or a harborage of rodents, to remove all home occupation materials, remove the rocks away from the sidewalk, repaint all woodwork of the residence with peeling, chipping and damaged paint, repaint the front wrought iron fence that has rust or damaged paint, install an approved enclosure for the water heater, legalize or demolish the patio cover.”

Respondents have failed to respond.

On February 24, 2022, the City issued Respondents a Notice and Order to Repair or Abate (“Notice and Order”).

On July 5, 2022, counsel for the City issued a 3-Day Notice of Intent to File Receivership Petition letter (“3-Day Notice”).

On July 18, 2022, a NOTICE OF PENDENCY OF ACTION (LIS PENDENS) was filed.

On August 11, 2022, Petitioner filed the instant Motion.

On August 11, 2022, default was entered as to Respondents.

On August 30, 2022, the City filed a Notice of Non-Opposition to the Motion for Appointment of Receiver as opposition papers were due no later than Wednesday, August 24, 2022.

Legal Standard

Sections 17980.6 and 17980.7 of the Health and Safety Code compose a statutory scheme providing certain remedies to address substandard residential housing that is unsafe to occupy. Pursuant to section 17980.6, an enforcement agency may issue a notice to an owner to repair or abate property conditions that violate state or local building standards and substantially endanger the health and safety of residents or the public. Section 17980.7 provides that, if the owner fails to comply with the notice despite having been afforded a reasonable opportunity to do so, the enforcement agency may seek judicial appointment of a receiver to assume control over the property and remediate the violations or take other appropriate action. (City of Santa Monica v. Gonzalez (2008) 43 Cal.4th 905, 912.)  

Discussion

1. Compliance with Health & Safety Code § 17980.6 

Health & Safety Code § 17980.6 states:  

If any building is maintained in a manner that violates . . . any provision in a local ordinance that is similar to a provision in this part, and the violations are so extensive and of such a nature that the health and safety of residents or the public is substantially endangered, the enforcement agency may issue an order or notice to repair or abate pursuant to this part. Any order or notice pursuant to this subdivision shall be provided either by both posting a copy of the order or notice in a conspicuous place on the property and by first-class mail to each affected residential unit, or by posting a copy of the order or notice in a conspicuous place on the property and in a prominent place on each affected residential unit. The order or notice shall include, but is not limited to, all of the following: 

(a) The name, address, and telephone number of the agency that issued the notice or order. 

(b) The date, time, and location of any public hearing or proceeding concerning the order or notice. 

(c) Information that the lessor cannot retaliate against a lessee pursuant to Section 1942.5 of the Civil Code. 

Here, the Court concludes Plaintiff has presented sufficient evidence of building code violations and other state and local laws that endanger human life. Plaintiff also has presented sufficient evidence that it provided multiple notices to Respondents consistent with the requirements detailed above. Accordingly, the Court concludes Plaintiff has complied with Health & Safety Code § 17980.6. 

2. Compliance with Health & Safety Code § 17980.7 

Health & Safety Code § 17980.7(c) states, in relevant part:  

(c) The enforcement agency, tenant, or tenant association or organization may seek and the court may order, the appointment of a receiver for the substandard building pursuant to this subdivision. In its petition to the court, the enforcement agency, tenant, or tenant association or organization shall include proof that notice of the petition was served not less than three days prior to filing the petition, pursuant to Article 3 (commencing with Section 415.10) of Chapter 4 of Title 5 of Part 2 of the Code of Civil Procedure, to all persons with a recorded interest in the real property upon which the substandard building exists. 

(1) In appointing a receiver, the court shall consider whether the owner has been afforded a reasonable opportunity to correct the conditions cited in the notice of violation. 

(2) The court shall not appoint any person as a receiver unless the person has demonstrated to the court his or her capacity and expertise to develop and supervise a viable financial and construction plan for the satisfactory rehabilitation of the building. A court may appoint as a receiver a nonprofit organization or community development corporation. In addition to the duties and powers that may be granted pursuant to this section, the nonprofit organization or community development corporation may also apply for grants to assist in the rehabilitation of the building. 

Here, Plaintiff has satisfactorily provided evidence that all individuals with an interest in the property were properly served three days before the filing of the petition.

The court also concludes that Respondents have been provided a reasonable opportunity to correct the code violations. Inspections of the property, each of which led to notices that the property needed to be repaired, occurred on multiple occasions. Petitioner waited years before filing this action, as the first compliance letter was sent in 2008. Thus, Respondents have had ample opportunity to cure defects.

Finally, the Court concludes Plaintiff has demonstrated that Kevin Randolph is sufficiently qualified to serve as receiver. Randolph is a member of the California Receivership Forum and has been appointed as receiver or receiver’s representative in over two hundred (200) Health & Safety Code and related receivership cases by the California Superior Courts.