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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />SEPTEMBER 5, 2017 <br />TITLE: <br />AUTHORIZATION TO FILE AND <br />PROSECUTE RECEIVERSHIP <br />ACTIONS AGAINST OWNERS OF <br />REAL PROPERTIES LOCATED IN THE <br />CITY OF SANTA ANA <br />{STRATEGIC PLAN NO. 3, 3} / <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1B1 Reading <br />❑ Ordinance on 2"d Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the filing and prosecution of receivership actions against the owners of the following <br />properties based on nuisance conditions resulting from health and safety violations of the City's <br />Municipal Code for an amount not to exceed $90,000: <br />1. 533 E. Washington — General Code Enforcement <br />2. 1020 S. Hickory — General Code Enforcement <br />3. 3604 W. Hazard — General Code Enforcement <br />4. 1244 S. Parton — General Code Enforcement <br />5. 1029 W. 2nd — General Code Enforcement <br />DISCUSSION <br />The City has successfully resolved several difficult code enforcement matters by using the <br />California Health and Safety Code Receivership process. California Health and Safety Code <br />section 17980.7 allows a city to seek the appointment of a receiver over a substandard property <br />that has been previously cited for violations which pose health and safety risks. The powers <br />granted to a receiver are broad, the receiver may: (1) take full and complete control of the <br />property; (2) manage the property and pay expenses of the operation of the property; (3) secure <br />a cost estimate and construction plan from a licensed contractor for the repairs necessary to <br />correct the substandard conditions; (4) enter into contracts and employ a licensed contractor <br />as necessary to correct substandard conditions; (5) borrow funds to pay for repairs necessary <br />to correct substandard conditions; and (6) secure debt, with Court approval, with a recorded <br />first lien on the property, first in priority to all other liens. (Ibid., Code Civ. Proc. § 568.) <br />The use of the receivership option is a dramatic, immediate and comprehensive process that <br />eliminates slum conditions or habitually substandard properties at no expense to the referring <br />agency when it is the prevailing property. This process also communicates to the public that <br />the City is actively protecting resident and tenants from dangerous conditions created by <br />absentee and recalcitrant property owners <br />'19F-1 <br />