                                 CODE OF VIRGINIA

AUTHORITY OF LOCALITY OR LAND BANK ENTITY TO BE APPOINTED TO ACT AS A RECEIVER
TO REPAIR DERELICT AND BLIGHTED BUILDINGS IN CERTAIN LIMITED CIRCUMSTANCES (§
15.2-907.2)

A. Any locality that has adopted an ordinance pursuant to § 15.2-907.1 may
petition the circuit court for the appointment of the locality or a land bank
entity created pursuant to the Land Bank Entities Act (§ 15.2-7500 et seq.) to
act as a receiver to repair real property that contains residential dwelling
units only in accordance with all of the following:

   1. The locality has properly declared the subject property to be a derelict
   building in compliance with the provisions of &#xA7; 15.2-907.1;

   2. The property owners are in noncompliance with the provisions of &#xA7;
   15.2-907.1;

   3. The locality has properly declared the subject property to be blighted in
   compliance with the provisions of &#xA7; 36-49.1:1 for spot blight abatement,
   and the subject property is itself blighted;

   4. The property owners are in noncompliance with the provisions of &#xA7;
   36-49.1:1 requiring abatement of the blighted condition of the property;

   5. The locality has made bona fide efforts to ensure compliance by the
   property owners of the subject property with the requirements of &#xA7;&#xA7;
   15.2-907.1 and 36-49.1:1;

   6. The repairs to the subject property are necessary to bring the subject
   property into compliance with the provisions of the Uniform Statewide Building
   Code;

   7. The repairs to the subject property necessary to satisfy the requirements
   of subdivision 6 shall not result in a change of use for zoning purposes of
   the subject property;

   8. Upon appointment by the circuit court to serve as a receiver, the locality
   or land bank entity shall have the authority to contract for all reasonable
   repairs necessary to bring the property into compliance with the provisions of
   the Uniform Statewide Building Code, subject to all applicable requirements of
   state and local procurement laws. Such repairs shall be made in a time period
   established by the court, but in no event shall a receivership exceed two
   years;

   9. Notwithstanding any other provision of law, the provisions of this section
   are subject to the requirements of the Servicemembers Civil Relief Act (50
   U.S.C. &#xA7; 3901 et seq.); and

   10. Notwithstanding any other provisions of law, the subject property shall be
   eligible for any real estate abatement programs that exist in the locality.

B. A petition by the locality to be appointed, or to appoint a land bank entity
created pursuant to the Land Bank Entities Act (&#xA7; 15.2-7500 et seq.), to
act as a receiver shall include affirmative statements that the locality has
satisfied each of the requirements of this section and further state that the
locality has recorded a memorandum of lis pendens simultaneously with the filing
of said petition. The costs of the receivership, along with reasonable attorney
fees, incurred by the locality or land bank entity as receiver shall constitute
a lien in favor of the locality or land bank entity against the subject property
in accordance with the provisions of &#xA7; 58.1-3340, and shall be on par with
and collectible in the same manner as delinquent real estate taxes owed to the
locality. The judicial proceedings herein shall be held in accordance with the
requirements, statutory or arising at common law, relative to effecting the sale
of real estate by a creditor&#8217;s bill in equity to subject real estate to
the lien of a judgment creditor.

C. The locality or land bank entity created pursuant to the Land Bank Entities
Act (&#xA7; 15.2-7500 et seq.) appointed to be a receiver may enforce the
receiver&#8217;s lien by a sale of the property at public auction, but only upon
application for and entry of an order of sale by the circuit court. The court
shall appoint a special commissioner to conduct the sale, and an attorney
employed by the locality may serve as special commissioner. Such sale shall be
upon order of the court entered after notice as required by the Rules of the
Supreme Court of Virginia and following publication of notice of the sale three
times in a newspaper of general circulation, with the first notice appearing no
more than 35 days before and the third notice appearing no less than seven days
before the sale. Following such public auction, the special commissioner shall
file an accounting with the court and seek confirmation of the sale. Upon
confirmation, the special commissioner shall be authorized to execute a deed
conveying title, which shall pass free and clear to the purchaser at public
auction. Following such sale, the former owner or owners, or any heirs,
assignees, devisees, or successors in interest to the property shall be entitled
to the surplus received in excess of the receiver&#8217;s lien, taxes,
penalties, interest, reasonable attorney fees, costs, and any recorded liens
chargeable against the property. At any time prior to confirmation of the sale
provided for herein, the owner shall have the right to redeem the property, as
provided for in subsection D. The character of the title acquired by the
purchaser of the property at public auction shall be governed by the principles
and rules applicable to the titles of purchases at judicial sales of real estate
generally.

D. The owner of any property subject to receivership may redeem the property at
any time prior to the expiration of the two-year period or prior to confirmation
of sale at public auction by paying the receiver&#8217;s lien in full and the
taxes, penalties, interest, reasonable attorney fees, costs, and any recorded
liens chargeable against the property. Partial payment shall not be sufficient
to redeem the property and shall not operate to suspend the receivership.

E. In lieu of appointment of a receiver, the circuit court shall permit repair
by a property owner or a person with an interest in the property secured by a
deed of trust properly recorded upon the following conditions:

   1. Demonstration of the ability to complete the repair within a reasonable
   amount of time to be determined by the court; and

   2. Entry of a court order setting forth a schedule for such repair.

HISTORY: 2012, cc. 220, 761; 2017, c. 381; 2024, cc. 225, 242.