§ 34-44-4 - Public nuisance determination – Show cause hearing – Appointment of receiver.
SECTION 34-44-4
§ 34-44-4 Public nuisance determination– Show cause hearing – Appointment of receiver. – (a) In any proceeding described in § 34-44-3 of this chapter, if the courtmakes the finding described in that section and additionally finds that thebuilding in question constitutes a public nuisance and that the owner of thebuilding has been afforded reasonable opportunity to begin correcting thedangerous or unsafe condition found or to begin eliminating the violation foundand has refused or failed to do so, the court shall cause notice of itsfindings to be served upon the owner, each mortgagee or other lienholder ofrecord, and any other interested party, and shall order the parties to showcause why a receiver should not be appointed to perform any work and to furnishany material that reasonably may be required to abate the public nuisance. Thenotice shall be served in the same manner as described in § 34-44-3 ofthis chapter.
(b) Before appointing a receiver to perform any work to abatea public nuisance under this chapter, the court shall conduct a hearing atwhich any mortgagee of record or lienholder of record, or other interestedparty in the order of his or her priority of interest in title shall be offeredthe opportunity to undertake the work and to furnish the materials as arenecessary to abate the public nuisance. The court shall require the partyselected to demonstrate the ability promptly to undertake the work required, toprovide the judge with a viable financial and construction plan for therehabilitation of the building, and to post security for the performance of thework. All amounts expended by the party toward abating the public nuisanceshall be a lien on the property if the expenditures were approved in advance bythe court and if the party desires such a lien. The lien shall bear theinterest, and shall be payable upon the terms approved by the court. The lienshall have the same priority as the mortgage of a receiver, as set forth in§ 34-44-6, if a certified copy of the court order that approved theexpenses, the interest, and the terms of payment of the lien, and a descriptionof the property in question are filed for record, within thirty (30) days ofthe date of issuance of the order, in the office of the recorder of deeds ofthe municipality in which the property is located. If the court determines atthe hearing that no party can undertake the work and furnish the materialsrequired to abate the public nuisance, or if the court determines at any timeafter the hearing that any party who is undertaking corrective work pursuant tothis chapter cannot or will not proceed, or has not proceeded with duediligence, the judge may appoint a receiver to take possession and control ofthe property. The receiver shall be appointed in the manner provided insubsection (c).
(c) No person shall be appointed a receiver unless he or shefirst has provided the court with a viable financial and construction plan forthe rehabilitation of the property in question and has demonstrated thecapacity and expertise to perform the required work in a satisfactory manner.Prior to the appointment of a receiver the court may grant access to theproperty in question to any person who applies to be appointed the receiver ofthe property, for the limited purpose of developing a viable financial andconstruction plan for the rehabilitation of the property which shall includethe items set forth in § 34-44-4.1. The appointed receiver may be afinancial institution that possesses an interest of record in the property, anonprofit corporation that is duly organized and has as one of its goals theimprovement of housing conditions for low and moderate income persons in themunicipality in which the property in question is located, or any otherqualified property manager who certifies that any rehabilitation of theproperty in question will not result in the long term displacement of low andmoderate income persons.