Receivership

Notice of Receivership Auctions

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Receivership

38 Leyfred Terrace, Springfield, MA: Before and After Receivership

A Receivership is the use of the statutory power authorized in M.G.L. Chapter 111, Section 127I, to seize buildings to ensure enforcement of the state sanitary code. The law provides for the property to be placed under the control of a judicially supervised receiver who has the power to collect rents, make repairs, and borrow money when necessary.

In a typical scenario the City of Springfield’s Code Enforcement Department, working in conjunction with the law department, petitions the housing court for the appointment of a receiver after having exhausted all other remedies to secure a property’s compliance with health and safety codes. If the court deems the City’s request valid, it then appoints a receiver to step in to stabilize and manage the distressed property. The receiver arranges for repairs and management of the property and funds this through rents or by borrowing money using the statute’s priority lien provision. Receivers may be property management firms, Community Development Corporations, lawyers or other responsible parties qualified by the court. Ideally, a property owner steps back in to take control of the building but in the absence of a responsive owner, the receiver can foreclose on the property to collect outstanding debts. Receivers may place a priority lien on the property for the total costs incurred.

Receivership can expedite a community’s intervention when a property poses a hazard because it has been abandoned and/or when tenants are at risk. Receiverships are part of the City of Springfield’s overall housing strategy and used only when all other efforts to secure the owner’s cooperation have failed.

Receiver Responsibilities & Priority Lien

82 Temple Street, Springfield, MA: Before and After Receivership

Pursuant to M.G.L. Chapter 111, Section 127I, Receivers must (1) provide proof of liability insurance, (2) promptly repair the property and maintain it in a safe and healthful condition, and (3) file bimonthly reports detailing a full accounting of all funds received by and owed to the Receiver. Under the statute, Receivers also have the right to (1) borrow funds, (2) enter into contacts, (3) place a priority lien on the property for the total costs incurred during the receivership, (4) collect rents, and (5) charge for necessary expenses. Receivers cannot be held personally liable but can be held liable for injuries to persons and property, but such liability is limited to the assets and income of the receivership.

How Can I Become a Receiver?

127 St James Ave, Springfield, MA: Before & After Receivership

The Western Division Housing Court maintains the primary list of qualified receivers. The application period for receivers generally runs from June 1st through July 31st. For more information on the application process, please contact Michael Doherty, First Assistant Clerk Magistrate at the Western Division Housing Court by phone at 413-748-7838 or by email at michael.doherty@jud.state.ma.us. Once you have been accepted as a Court approved receiver, you may contact Associate City Solicitor, Caitlin Castillo at the City of Springfield by phone at 413-750-2264 or by email at cmorris-castillo@springfieldcityhall.com for more information on how the City of Springfield selects qualified receivers from the Court’s approved list.

The City of Springfield's Receivership Program is funded in part through a grant from the Massachusetts Attorney Generals’ Office.

Receivership Training Materials:

_{Mayor Dominic J. Sarno and the City of Springfield’s law department in conjunction with the Western Division Housing Court hosted a training for Receivers, their counsel and local municipalities on June 7, 2017 at the UMass Center in Springfield. Please click on the links below to access the reference materials provided at the event.}