Huntington Park Municipal Code Ch. 13 Receivership Policy

The purpose of this chapter is to establish procedures, standards, and accountability measures for the management of properties under receivership within the City of Huntington Park. These regulations are intended to ensure that properties are rehabilitated responsibly, transparently, and ethically, to promote community well-being and protect public resources.

(Ord. 2025-12, 9/9/2025, eff. 10/9/2025)

For the purposes of this chapter, the following definitions shall apply:

Conflict of Interest,

A situation where a receiver or associated party has a personal, financial, or other interest that could improperly influence their duties and responsibilities.

Receiver,

A court-appointed individual or entity responsible for managing, rehabilitating, or selling a property under receivership.

Receivership Property,

Any property placed under the control of a receiver by a court order due to issues such as abandonment, code violations, unpaid taxes, or public nuisance.

(Ord. 2025-12, 9/9/2025, eff. 10/9/2025)

(a) Minimum Qualifications. Receivers must demonstrate experience in property management, real estate law, or construction management. Receivers must be licensed in good standing with the appropriate regulatory bodies.

(b) Background Checks. Receivers and their key personnel must undergo background checks to ensure there are no prior convictions related to fraud, corruption, or unethical business practices.

(c) Bonding and Insurance. Receivers must obtain a surety bond and maintain liability insurance to protect the City against potential financial losses due to negligence or fraud.

(Ord. 2025-12, 9/9/2025, eff. 10/9/2025)

(a) Segregated Accounts. Receivers are required to maintain separate bank accounts for each property under receivership to prevent commingling of funds and ensure transparency.

(b) Monthly Financial Reports. Receivers must submit detailed monthly financial reports to the City's oversight board, including all income, expenses, and financial transactions related to the property.

(c) Annual Independent Audit. Properties under receivership must undergo an annual independent audit, with the results submitted to the City Council and made publicly available.

(Ord. 2025-12, 9/9/2025, eff. 10/9/2025)

(a) Maintenance Guidelines. Receivers must adhere to standardized maintenance and safety guidelines to ensure properties are kept secure, clean, and in compliance with local building codes.

(b) Improvement Timelines. Receivers must submit a detailed improvement plan with specific timelines for addressing code violations, safety hazards, and necessary renovations within 30 days of appointment.

(c) Regular Inspections. The City will conduct bi-annual inspections of properties under receivership to verify compliance with maintenance and improvement standards.

(Ord. 2025-12, 9/9/2025, eff. 10/9/2025)

(a) Competitive Bidding. Receivers are required to use a competitive bidding process for all contracts exceeding $10,000 to ensure fair pricing and prevent favoritism.

(b) Conflict of Interest Disclosures. Receivers must disclose any potential conflicts of interest with contractors, vendors, or service providers. Receivers are prohibited from contracting with entities in which they have a financial interest.

(c) Approved Vendor List. The City will maintain a list of pre-approved vendors and contractors that meet quality and ethical standards. Receivers are encouraged to use vendors from this list.

(Ord. 2025-12, 9/9/2025, eff. 10/9/2025)

(a) Public Notice. Receivers must provide public notice of major actions related to the property, such as sales or significant renovations, in a local newspaper and on the City's website.

(b) Community Meetings. For properties located in residential areas, receivers must hold at least one community meeting to gather input and inform residents of plans for the property.

(c) Transparency Portal. The City will establish an online portal where the public can access information about properties under receivership, including financial reports, improvement plans, and meeting notices.

(Ord. 2025-12, 9/9/2025, eff. 10/9/2025)

(a) Ongoing Compliance Checks. Properties that exit receivership will be subject to ongoing compliance checks for a period of one year to ensure continued adherence to City codes and standards.

(b) Penalties for Noncompliance. Receivers who fail to meet the requirements of this chapter may face penalties, including fines, removal from their position, or legal action.

(Ord. 2025-12, 9/9/2025, eff. 10/9/2025)

(a) Mandatory Training. All receivers must complete City-approved training on ethical standards, legal responsibilities, and best practices for property management within 60 days of appointment.

(b) City Resources. Receivers will have access to City resources, including technical assistance, legal support, and funding opportunities, to aid in the effective management and rehabilitation of properties.

(Ord. 2025-12, 9/9/2025, eff. 10/9/2025)

(a) Oversight Committee. The City will establish an Oversight Committee consisting of City officials, legal advisors, and community representatives to monitor compliance with this ordinance and provide guidance.

(b) Review and Amendments. This chapter shall be reviewed annually by the City Council, with amendments made as necessary to address emerging issues and ensure effectiveness.

(Ord. 2025-12, 9/9/2025, eff. 10/9/2025)