17062
. (a) Any state or local agency which participated in the
investigation and enforcement pursuant to this part shall be
reimbursed for its investigative and legal costs prior to and
subsequent to the judgment.
(b) Notwithstanding any other provision of law, upon motion by the
enforcement agency, the operator, or the tenants, the court may
issue an order which would result in correction of defects, rather
than closure of the employee housing. The order may provide,
notwithstanding subdivision (a), that fines and penalties be paid for
improvements, or that a lien be levied against the property to pay
the costs of an independent receiver to complete repairs, or any
other just and reasonable procedures.
(c) (1) (A) If employee housing is maintained in a manner that
violates any provision of this part, including any rule, standard, or
regulation promulgated pursuant to this part, and the violation is
so extensive and of such a nature that the health and safety of
residents or the public is substantially endangered, and if the owner
or operator does not, within a reasonable time after issuance of the
notice or order by the enforcement agency, correct the condition
that is the cause of the violation, the enforcement agency, tenant,
or tenant association or organization may, in addition to any other
remedies provided by law, seek the appointment of a receiver pursuant
to this subdivision.
(B) In its petition to the court, the enforcement agency, tenant,
or tenant association or organization shall include proof that notice
of the petition was served not less than five days prior to filing
the petition, pursuant to Article 3 (commencing with Section 415.10)
of Chapter 4 of Title 5 of Part 2 of the Code of Civil Procedure, to
all persons with a recorded interest in the real property upon which
the substandard employee housing exists.
(C) In appointing a receiver, the court shall consider whether the
owner has been afforded a reasonable opportunity to correct the
conditions cited in the notice of violation. The court shall not
appoint any person as a receiver unless the person has demonstrated
to the court his or her capacity, willingness, and expertise to
develop and supervise a viable financial and construction plan for
the satisfactory rehabilitation of the employee housing. If a
receiver is appointed, the owner and his or her agent of the
substandard employee housing shall be enjoined from collecting rents
from the tenants, interfering with the receiver in the operation of
the substandard employee housing, and encumbering or transferring the
substandard employee housing or real property upon which the
employee housing is situated.
(2) Any receiver appointed pursuant to this section shall have all
of the following powers and duties in the order of priority listed
in this paragraph, unless the court otherwise permits:
(A) To take full and complete control of the substandard employee
housing.
(B) To manage the substandard employee housing and pay expenses of
the operation of the substandard employee housing and real property
upon which the employee housing is located, including taxes,
insurance, utilities, general maintenance, and debt secured by an
interest in the real property. However, the receiver shall not
operate the employee housing for a longer period each year than the
period it previously was operated as employee housing each year by
the operator or owner.
(C) To secure a cost estimate and construction plan from a
licensed contractor for the repairs necessary to correct the
conditions cited in the notice of violation.
(D) To enter into contracts and employ a licensed contractor as
necessary to correct the conditions cited in the notice of violation.
(E) To collect all rents and income from the substandard employee
housing.
(F) To use all rents and income from the substandard employee
housing to pay for the cost of rehabilitation and repairs determined
by the court as necessary to correct the conditions cited in the
notice of violation.
(G) To borrow funds to pay for repairs necessary to correct the
conditions cited in the notice of violation and to borrow funds to
pay for any relocation benefits authorized by paragraph (4) and
secure that debt, with court approval, with a lien on the real
property upon which the substandard employee housing is located. The
lien shall be recorded in the county recorder's office in the county
within which the employee housing is located.
(H) To exercise the powers granted receivers under Section 568 of
the Code of Civil Procedure.
(3) The receiver shall be entitled to the same fees, commissions,
and necessary expenses as receivers in actions to foreclose
mortgages.
(4) If the conditions of the employee housing or the repair or
rehabilitation thereof significantly affect the safe and sanitary use
of the substandard employee housing by any tenant, to the extent
that the tenant cannot safely reside in his or her unit, then the
receiver shall provide relocation benefits in accordance with
paragraph (3) of subdivision (d).
(5) The relocation compensation provided for in this section shall
not preempt any local ordinance that provides for greater relocation
assistance.
(6) In addition to any reporting required by the court, the
receiver shall prepare monthly reports to the state or local
enforcement agency which shall contain information on at least the
following items:
(A) The total amount of rent payment received.
(B) Nature and amount of contracts negotiated relative to the
operation or repair of the property.
(C) Payments made toward the repair of the premises.
(D) Progress of necessary repairs.
(E) Other payments made relative to the operation of the employee
housing.
(F) Amount of tenant relocation benefits paid.
(7) The receiver shall be discharged when the conditions cited in
the notice of violation have been remedied in accordance with the
court order or judgment and a complete accounting of all costs and
repairs has been delivered to the court. Upon removal of the
condition, the owner, the mortgagee, or any lienor of record may
apply for the discharge of all moneys not used by the receiver for
removal of the condition and all other costs authorized by this
section.
(8) The prevailing party in an action pursuant to this section
shall at the court's equitable discretion be entitled to reasonable
attorney's fees and court costs as may be fixed by the court.
(9) The county recorder may charge and collect fees for the
recording of all notices and other documents required by this section
pursuant to Article 5 (commencing with Section 27360) of Chapter 6
of Division 2 of Title 3 of the Government Code.
(10) Nothing in this section shall be construed to limit those
rights available to tenants and owners under any other provision of
the law.
(11) Nothing in this section shall be construed to deprive an
owner of substandard employee housing of all procedural due process
rights guaranteed by the California Constitution and the United
States Constitution, including, but not limited to, receipt of notice
of the violation claimed and an adequate and reasonable period of
time to comply with any orders that are issued by the enforcement
agency or the court.
(d) If the court finds that the employee housing is in a condition
that substantially endangers the health and safety of residents
pursuant to subdivision (a) of Section 17980.6, upon the entry of any
order or judgment, the court shall do all of the following:
(1) Order the owner to pay all reasonable and actual costs of the
enforcement agency including, but not limited to, inspection costs,
investigation costs, enforcement costs, attorney's fees or costs, and
all costs of prosecution.
(2) Order that the local enforcement agency shall provide the
tenants with notice of the court order or judgment.
(3) Order that, if the owner undertakes repairs or rehabilitation
as a result of being cited for a notice under this chapter, and if
the conditions of the premises or the repair or rehabilitation
thereof significantly affect the safe and sanitary use of the
premises by any lawful tenant, so that the tenant cannot safely
reside in the premises, then the owner shall provide or pay
relocation benefits to each lawful tenant as specified in subdivision
(b) of Section 17060.2. These benefits shall consist of actual
reasonable moving and storage costs and relocation compensation. The
actual moving and storage costs shall consist of all the following:
(A) Transportation of the tenant's personal property to the new
location. The new location shall be in close proximity to the
substandard premises, except where relocation to a new location
beyond a close proximity is determined by the court to be justified.
(B) Packing, crating, unpacking, and uncrating the tenant's
personal property.
(C) Insurance of the tenant's property while in transit.
(D) The reasonable replacement value of property lost, stolen, or
damaged (not through the fault or negligence of the displaced person,
his or her agent, or his or her employee) in the process of moving,
where insurance covering the loss, theft, or damage is not reasonably
available.
(E) The cost of disconnecting, dismantling, removing,
reassembling, reconnecting, and reinstalling machinery, equipment, or
other personal property of the tenant, including connection charges
imposed by utility companies for starting utility service.
(e) (1) The relocation compensation shall be an amount equal to
the differential between the contract rent and the fair market rental
value determined by the United States Department of Housing and
Urban Development for a unit of comparable size within the area for
the period that the unit is being repaired, not to exceed 120 days or
the duration that the camp is open, or the term of employment,
whichever is less.
(2) (A) If the court finds that a tenant has been substantially
responsible for causing or substantially contributing to the
substandard conditions, then the relocation benefits of this section
shall not be paid to this tenant. Each other tenant on the premises
who has been ordered to relocate due to the substandard conditions
and who is not substantially responsible for causing or contributing
to the conditions shall be paid these benefits and moving costs at
the time that he or she actually relocates.
(B) The court shall determine the date when the tenant is to
relocate, and order the tenant to notify the enforcement agency and
the owner of the address of the premises to which he or she has
relocated, within five days after the relocation.
(C) (i) The court shall order that the owner shall offer the first
right to occupancy of the premises to each tenant who received
benefits pursuant to paragraph (3) of subdivision (d), before letting
the unit for rent to a third party. The owner's offer on the first
right to occupancy to the tenant shall be in writing, and sent by
first-class certified mail to the address given by the tenant at the
time of relocation. If the owner has not been provided the tenant's
address by the tenant as prescribed by this section, the owner shall
not be required to provide notice under this section or offer the
tenant the right to return to occupancy.
(ii) The tenant shall notify the owner in writing that he or she
will occupy the unit. The notice shall be sent by first-class
certified mail no later than 10 days after the notice has been mailed
by the owner.
(D) The court shall order that failure to comply with any
abatement order under this chapter shall be punishable by civil
contempt penalties under Chapter 6 (commencing with Section 17995) of
Part 1.5, and any other penalties and fines as are available.
(f) The initiation of a proceeding or entry of a judgment pursuant
to this section or Section 17980.6 shall be deemed to be a
"proceeding" or "judgment" as provided by paragraph (4) or (5) of
subdivision (a) of Section 1942.5 of the Civil Code.
(g) The term "owner," for the purposes of this section, shall
include the owner, including any public entity that owns residential
real property, at the time of the initial notice or order and any
successor in interest who had actual or constructive knowledge of the
notice, order, or prosecution.
(h) The remedies authorized by this section shall be in addition
to those provided by any other law.
(i) Nothing in this section or in Section 17980.6 shall impair the
rights of an owner exercising his or her rights established pursuant
to Chapter 12.75 (commencing with Section 7060) of Division 7 of
Title 1 of the Government Code.