§ 56-608. Appointment of party in interest as a receiver.

(a)

A party in interest may be appointed to rehabilitate, demolish, or sell the property to a qualified buyer if that person:

(1)

Requests the appointment to be a receiver;

(2)

Demonstrates the financial ability to complete the rehabilitation, demolition, or sale within a reasonable time;

(3)

Agrees to comply with a specified schedule and scope of work for rehabilitation, demolition, or sale and abatement of vacancy; and

(4)

Unless waived by the court, posts bond or enters an escrow agreement, in an amount determined by the court as security for performance of the required work in compliance with the specified schedule and scope of work.

(b)

On appointment of a party in interest as a receiver to rehabilitate, demolish, or sell the property, all other parties in interest are divested of any authority to take any actions regarding the property without court approval.

(c)

If it appears to the city that the party in interest appointed as the receiver is not proceeding with due diligence or in compliance with the court-ordered schedule and scope of work, the city may apply to the court for immediate revocation of that person's appointment and for appointment of a new receiver. The bond posted under this section must then be applied to the subsequently appointed receiver's expenses in rehabilitating, demolishing, or selling the property.

(Ord. No. 140983 , § 1, 12-4-14)