2023 District of Columbia Code › Title 42 - Real Property › Chapter 36A - Tenant Receivership › § 42–3651.05. Appointment of a receiver; continuation of ex parte appointment

§ 42–3651.05. Appointment of a receiver; continuation of ex parte appointment.
(a)(1) After a hearing, the Court may appoint a receiver for a rental housing accommodation or continue the appointment of a receiver made ex parte if it finds that the petitioner has proven, by a preponderance of the evidence, the existence of the grounds for receivership as set forth in § 42-3651.02 and finds that the respondent has not provided the Court with a sufficient plan for abatement of the conditions alleged in the petition. As part of any order granting a receivership, the Court may also enjoin the respondent from continuing any of the actions, practices, or patterns of neglect at the rental housing accommodation and at any other rental accommodations owned, managed, or controlled by the respondent.
(2) Upon acceptance of a respondent's plan, the Court shall retain the case for purposes of monitoring respondent's execution of the plan. The monitoring shall continue until the Court, on its own motion or that of any party:
(A) Dismisses the petition on grounds that all conditions that constituted a serious threat to the health, safety, or security of the tenants have been abated; or
(B) Finds the respondent has not made sufficient progress to complete the plan, in which event it may order appointment of a receiver under this section.
(b) Except as provided in subsection (c) of this section, the Court may appoint as a receiver any person or entity who has demonstrated to the Court the capacity and expertise to develop and supervise a viable financial and construction plan for the satisfactory rehabilitation of the rental housing accommodation.
(c) The Court shall not appoint as a receiver:
(1) An employee of a District of Columbia government agency that licenses or provides a financial payment to the type of housing accommodation being placed in receivership;
(2) A person who has a financial interest in any other real property in common with the owner of the property being placed under receivership; or
(3) A parent, child, grandchild, spouse, or domestic partner as defined in § 32-701(3), sibling, first cousin, aunt, or uncle of the owner of the property being placed under receivership or a tenant of the property being placed under receivership, whether the relationship arises by blood, marriage, or adoption.
(d)(1) Before a receiver takes charge of a rental housing accommodation, the receiver shall post a bond, the premiums of which may be paid in installments, with the Court, which bond:
(A) Does not exceed the value of the rental housing accommodation and its furnishings, records, and other related personal property and goods; and
(B) Is held by the Court for the benefit of all persons interested in the faithful performance of the receivership.
(2) Unless the Court directs otherwise, the receiver may pay the premium of the bond from the rental housing accommodation’s income.
(3) The bond requirement of this subsection may be waived by the Court for good cause.
(e) Any person authorized to file a petition under § 42-3651.03 may petition the Court to appoint a substitute if a receiver:
(1) Dies;
(2) Has or develops a disability which impedes his or her ability to carry out the receivership;
(3) Has or develops a conflict of interest; or
(4) Fails to make reasonable progress in carrying out the receivership.
(f)(1) As part of any proceeding commenced for the appointment of a receiver, or in any plan for abatement presented by a respondent, the Court shall order that the respondent or any owner of the subject rental housing accommodation, or both, contribute funds in excess of the rents collected from the rental housing accommodation for any or all of the following purposes:
(A) Abating housing code violations;
(B) Reimbursing the District of Columbia for any abatements undertaken;
(C) Assuring that any conditions that are a serious threat to the health, safety, or security of the occupants or public are corrected;
(D) Relocating and maintaining tenants displaced during the implementation of any abatement plan into comparable units including paying any difference in the rent due to relocation;
(E) Satisfying the up-front receivership costs, including posting a bond pursuant to subsection (d) of this section, reasonable up-front compensation to the receiver, and any costs associated with obtaining professional studies or evaluations of the property's condition and abatement needs;
(F) Refunding prior rents paid of at least one-half of any month's rent up to 3 years prior to the date the receivership was granted for any period of time that the District of Columbia presents evidence that the rental housing accommodation suffered from a serious state of disrepair; and
(G) For other purposes reasonably necessary in the ordinary course of business of the property, including maintenance and upkeep of the rental housing accommodation, payment of utility bills, mortgages and other debts, and payment of the receiver's fees.
(2) For the purpose of this section, "owner" shall mean any person or entity who, alone or jointly or severally with others, meets either of the following criteria:
(A) Has legal title to the subject rental housing accommodation; or
(B) Has charge, care, or control of the subject rental accommodation, whether as owner or member, in whole or in part, of the legally titled owner, as agent of the legally titled owner, or as a fiduciary of the estate of the legally titled owner or any officer appointed by the court.
(Apr. 27, 2001, D.C. Law 13-281, § 505, 48 DCR 1888; Sept. 8, 2004, D.C. Law 15-176, § 4, 51 DCR 5707; Mar. 21, 2009, D.C. Law 17-319, § 5(b), 56 DCR 214; Sept. 26, 2012, D.C. Law 19-171, § 106, 59 DCR 6190; Mar. 16, 2021, D.C. Law 23-207, § 2(e), 67 DCR 13899.)
Effect of Amendments
D.C. Law 15-176, in par. (3) of subsec. (c), substituted “spouse, or domestic partner as defined in § 32-701(3),” for “spouse”.
D.C. Law 17-319 added subsec. (f).
The 2012 amendment by D.C. Law 19-171 validated a previously made technical correction in (f).
Emergency Legislation
For temporary (90 day) amendment, see § 5(b) of Abatement of Nuisance Properties and Tenant Receivership Emergency Amendment Act of 2008 (D.C. Act 17-420, July 8, 2008, 55 DCR 7703).
For temporary (90 day) amendment of section, see § 5(b) of Abatement of Nuisance Properties and Tenant Receivership Congressional Review Emergency Amendment Act of 2008 (D.C. Act 17-563, October 27, 2008, 55 DCR 12019).
Temporary Legislation
For temporary (225 day) amendment of section, see § 5(b) of Abatement of Nuisance Properties and Tenant Receivership Temporary amendment Act of 2008 (D.C. Law 17-237, October 21, 2008, law notification 55 DCR 11700).
Editor's Notes
Applicability of D.C. Law 15-176: Section 7 of D.C. Law 15-176 provided: “Sections 2 through 6 shall apply as of October 1, 2003.”