Why Receivership?

Abandoned, dilapidated and deteriorating properties affect the health, safety and welfare of those who live in this environment, as well as their neighbors who have to endure the blighted conditions. These situations often lead to decreased property values, health issues for children, and increased crime. 

Cities and towns across the US like Greensboro are moving to a receivership process to more quickly bring these properties up to the minimum housing standards so the properties may be returned to the community as safe and affordable housing. 

In the City's receivership pilot, properties not brought into compliance with the City's housing codes after the Greensboro Minimum Housing Standards Commission has ordered compliance will then qualify for the program.

Qualified receivers identified by the City may be appointed by a Guilford County Superior Court judge to serve as an independent authority authorized by general statute to carry out the needed repairs or demolition of an unsafe structure.

Initiative Benefits

• Quicker action to prevent the further deterioration of neighborhoods
• Increases in more available safe and affordable housing
• Creation of jobs in the construction and property management industry.

Greensboro's Receivership Program Overview

Structure/Property Selection

As of September 2020, 139 residential structures had been ordered to be demolished and 68 residential structures had been ordered to be repaired to City housing code standards by the Greensboro Minimum Housing Standards Commission. Review page three of the Receivership Pilot Program Overview for information on how a structure ultimately gets to this point.  

To kick off this initiative, 20 of the above properties were chosen by Housing & Neighborhood Development Department to be the first to go through this initiative. The properties were located in a reinvestment area and vacant with non-responsive ownership, and the rehabilitation of the properties will reduce or eliminate further blight to the neighborhoods.

Also, the properties selected were evaluated based on condition, value, ownership status, and location in high visibility areas. The Greensboro Minimum Housing Standards Commission first had to approve the selected properties for receivership.

Qualified Receiver Selection

Next, Housing & Neighborhood Development issued a Request for Qualifications (RFQs) from any interested person or entity to become a "Qualified Receiver" based on NC general statute requirements. To qualify, a receiver must have:

• Financial ability to complete the rehabilitation or purchase the property
• Knowledge of or experience in the rehabilitation of vacant structures
• Ability to obtain necessary liability insurance
• No building code violations issued by the City on any real property owned by the receiver or any member, principal, officer, major stockholder, parent, subsidiary, predecessor, or others affiliated with the receiver or the receiver’s business.

Receiver & Structure/Property Assignments

The Housing & Neighborhood Development Department’s Code Compliance Division places selected qualified receivers in alphabetical order of their business’ first name or receiver’s first name. Then the identified properties are placed in order from highest score to lowest. The first property is assigned to the first receiver on the list and so-on until all properties are assigned to a qualified receiver. 

If a receiver declines to work with an offered property, it is offered to the next receiver on the list until a receiver accepts that property. When a receiver declines a property, the receiver has to wait their turn on the list for another opportunity. It is possible that more than one receiver could be assigned to more than one property.

For each property a receiver is offered, the receiver must create a “Plan of Action” that outlines the work to be completed to bring the structure into compliance with all minimum housing code standards and a timeline for the project’s completion.

The qualifications of a receiver and their plan of action is presented to a Guilford County Superior Court judge for appointment as qualified receiver and to begin rehabilitation of the structure. The court reviews monthly reports from the receiver of their progress, receipts, and disbursements.

The Greensboro Minimum Housing Standards Commission can petition the court for the removal of any appointed receiver who is not performing or complying with the Order of the Court.