In July 2016, the City adopted a second tool, a program that allows the City to pursue remedies under the Oregon Housing Receivership Act in Oregon law. This is for properties that have already lost substantial value, but that are salvageable. In this program, the City investigates houses to identify houses where the program would make a positive impact. Ideal properties for the program are vacant and neglected homes, subject to a mortgage or not, in neighborhoods where the costs to remedy the violations are likely to be recovered. Other potential candidates may be homes that are beyond repair and demolition may be the best remedy.
Where a receiver might be beneficial, the City would give notice to the owners and mortgage companies. If the blight was not abated, the City would petition the Circuit Court to appoint a third-party receiver to remedy identified code enforcement and housing issues.
If the Circuit Court appoints a receiver, the City's formal involvement would end and a third party receiver would take control of the property. The Circuit Court supervises the abatement of identified code issues. The receiver would pay the taxes and address the issues causing the blight. At the completion of the abatement, the receiver would receive a super-priority lien with administrative fees, second only to taxes. If the mortgage company and owner fail to pay the lien, the receiver may foreclose its lien.
Since the receiver's lien is higher priority than the mortgage company's lien, it is the City's hope that mortgage companies will comply with the initial notice and a petition to Circuit Court is unnecessary. In other instances, the City will need to make a case by case determination on the likelihood of success.
The City will work with groups to become receivers qualified under the Oregon Housing Receivership Act. Currently, two groups have expressed interest. If no individuals step up to become receivers, the City will not pursue this program.