Abandoned housing is a significant problem in many Massachusetts communities. A single abandoned property can pull down the housing values and, more important have a significant impact on public safety for an entire neighborhood. Long before the current foreclosure crisis, the AGO began working to assist communities to use several code enforcement mechanisms to gain control over abandoned properties, make necessary repairs and bring the property back to full use.
The number of abandoned properties has increased as a result of the current financial and credit markets. However, the problem of abandoned properties is nothing new, and not the sole result of the increase in foreclosures. In the 1990's, in response to concerns over crime and safety issues, the AGO developed protocols using the State Sanitary Code and other applicable code enforcement tools to have a receiver appointed to rehabilitate dangerous, abandoned homes and address the blight created by an abandoned home in otherwise viable neighborhoods.
As the Federal Government works to grasp the extent of damage caused by the flood of foreclosures throughout the United States, local Municipalities are left to deal with the blight caused by the properties themselves. In many cases, where it is more cost-effective for owners to walk away from properties than maintain them, the properties sit vacant, subject to vandalism and used for illegal purposes. They present problems throughout the community. They are an eye sore for neighbors and local residents, and present a significant public safety risk to the community. Absentee owners put a strain on municipal revenue, leaving taxes unpaid and affecting the values of occupied properties. In 2009, the AGO expanded the resources dedicated to the AHI to support municipalities currently affected by the large number of foreclosures in the Commonwealth.
How the Program Works
The program starts with the municipality. Interested municipalities should begin by identifying all problem properties in the municipality. Problem properties include those which have fallen into disrepair and for which there has been no response from the owner of record when the municipality seeks repair. Depending upon the ownership status and the responsiveness of an owner of record, the strategy employed by the municipality will be different and the degree to which the AGO program is applicable will need to be assessed.
Inspectional Services or other municipal staff may contact the Attorney General's Office at any time during this process of identification of properties for assistance in assessing the property's feasibility for the program, locating absentee owners, contacting owners or, in the alternative, petition the Housing Court to appoint a receiver.
The appointment of a receiver works whether or not an owner is located. A receiver is a person, appointed by a court and given the authority to take appropriate actions to bring the property back to code. There are several methods by which the expenses incurred by the receiver can be paid, but in any event those expenses will be secured by a so-called "super lien" against the property.
The goal of the program is code enforcement and public safety. The preference and priority should always be to work with the owner and/or the existing creditors to work out a solution for the situation, whereby the owner of record agrees to assume responsibility for the work required to bring the property back up to acceptable standards with their own resources. If the owner is unable to assume responsibility, they may choose to utilize the Receivership Statute in support of the same end.
If an owner can be found, it is often likely that the prospect or threat of a receivership encourages the owner to take responsibility. If a negotiated settlement cannot be achieved at this phase, suit can be filed in the appropriate Housing Court (or a local District Court) seeking the appointment of a receiver who can, under court supervision and authority, take all action necessary to rehabilitate the property.
As the municipal staff develops the lists of properties, they should gather all documentation of inspections and code violations. As the process of the appointment of a receiver moves forward in a court, inspectional staff will serve as witnesses. In addition, municipal staff should consider who in the community might serve as a receiver.
For more information, contact the AHI Program Director.
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