In order to secure payment of any costs incurred as a result of the receivership, including repair, operation, maintenance or management of the property, the statute grants the receiver a " super lien" on the property. These costs include:
- Administrative costs
- Parts and Labor costs
- Legal fees
- Consultant Fees
- Interest Charges
- Foreclosure and Auction Costs (If necessary)
The "super lien" is given priority over all other liens or mortgages except municipal liens. The statute allows that a receiver may borrow funds, grant mortgages on the property, and/or assign the priority lien to its creditor(s). Potential funding sources include:
Rental Income: During the course of the receivership, the receiver may rent the property or individual units to tenants to offset the receiver's expenses once the code violations have been eliminated.
Public, Federal, State or Municipal Programs: Certain community development funding may be available for receiverships based on the targeted community and neighborhood. For more information on the availability of funding, contact the municipal community development office where the receivership property is located.
Community Based Lenders: The Attorney General's Office is working with the Massachusetts Bankers Association to develop potential financing relationships between receivers and community banks. For a list of lenders who have expressed an interesting in working with the Abandoned Housing Initiative and serving the appointed area, contact the AHI Program Director.
Self Financing: A receiver may leverage their own funding or equity in their business to finance the receivership.
For more information on financing a receivership, contact the AHI Program Director.