PETITION OF:

SECTION 1. The first paragraph of section 127A of chapter 111 of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by striking out, in lines 32 and 33, the words “and, in the cities of Boston, Worcester and Cambridge, by the commissioner of housing inspection” and inserting in place thereof the following:-
“, including any other local sanitary code enforcement agency,”.

SECTION 2. The second paragraph of said section 127A of said chapter 111, as so appearing, is hereby amended by inserting after the word “court”, in line 50, the following:-

“, housing court, and district court”.

SECTION 3. The first paragraph of section 127B of said chapter 111, as so appearing, is hereby amended by striking out, in lines 63 to 65, inclusive, the words “or, in the cities of Boston, Worcester and Cambridge, by the commission of housing inspection” and inserting in place thereof the following:- “including any other local sanitary code enforcement agency,”.

SECTION 4. Said first paragraph of said section 127B of said chapter 111, as so appearing, is hereby further amended by inserting after the word “court”, in line 87, the following:- “, housing court, or district court,”.

SECTION 5. The second paragraph of said section 127B of said chapter 111, as so appearing, is hereby amended by striking out, in lines 130 to 132, inclusive, the words “or, in the cities of Boston, Worcester and Cambridge, the commissioner of housing inspection” and inserting in place thereof the following:-“including any other local sanitary code enforcement agency,”.

SECTION 6. Section 127B of said chapter 111, as so appearing, is hereby further [MAC1] amended by striking out the words “and, in the cities of Boston, Worcester and Cambridge, by the commissioner of housing inspection, or local code enforcement agency” in the fifth paragraph and inserting in place thereof the following words:-

“, including any other local sanitary code enforcement agency,”.

SECTION 7. The first paragraph of section 127C of said chapter 111, as so appearing, is hereby amended by striking out, in lines 32 and 33, the words “or, in the cities of Boston, Worcester and Cambridge, by the commissioner of housing inspection” and inserting in place thereof the following:- “including any other local sanitary code enforcement agency,”.

SECTION 8. Section 127E of said chapter 111, as so appearing, is hereby amended by striking out, in lines 2 and 3, the words “or, in the cities of Boston, Worcester and Cambridge, the commissioner of housing inspection” and inserting in place thereof the following:- “including any other local sanitary code enforcement agency,”.

SECTION 9. The last paragraph of section 127F of said chapter 111, as so appearing, is hereby amended by inserting after the word “twenty-seven I”, in line 37, the following:- “or may order other appropriate legal or equitable relief, or both.”

SECTION 10. Said chapter 111 is hereby further amended by striking out section 127G, as so appearing, and inserting in place thereof the following new section:-

Section 127G. In lieu of the provisions of chapter 185C, at any time within fourteen days following service of a petition or of an order of notice in a case entered in the district court, upon application by any party for removal either to the superior court or the housing court and upon payment of any applicable removal fee, the clerk of the district court shall remove the case to the superior court or the housing court, and, upon payment of any applicable removal fee, the clerk of the district court shall remove the case to the superior court or the housing court for further proceedings therein in the same manner and to the extent as if the petition had originally been brought in said court. The clerk of the district court shall forthwith transmit any rents held by him together with the removal fee to the clerk of the superior or housing court. In the event that a removal request is made within seven days of a previously scheduled hearing in district court, the clerk shall not remove the case until the seventh day following the hearing date. Any order entered by the district court prior to removal shall remain in effect according to its terms unless vacated or amended by the court to which the case is removed, and any such order shall be subject to appeal in the same manner as if entered by the court to which the case is removed.

SECTION 11. Said chapter 111 is hereby further amended by striking out section 127I, as so appearing, and inserting in place thereof the following new section:-

Section 127I. Upon the filing of a petition to enforce the provisions of the sanitary code, or any civil action concerning violations of the sanitary code by any affected occupants or public agency, whether begun in the district, housing or superior court, and whether brought under section 127C or otherwise, the court may: issue temporary restraining orders, preliminary or permanent injunctions; order payment by any affected occupants to the clerk of the court, in accordance with the provisions of section 127F; or appoint a receiver whose rights, duties and powers shall be specified by the court in accordance with the provisions of this section.
Unless otherwise specifically provided herein, any service of process or notice to any person in interest or party in interest, as hereinafter defined, which is required by the terms of this section, shall be deemed sufficient if made to the last and usual address or address of record of the person in interest or party in interest.
At least fourteen days prior to any hearing in which the appointment of a receiver is sought, the petitioner shall serve by certified or registered mail a copy of the petition and notice of hearing on all mortgagees and lienors of record and all mortgagees and lienors of whom petitioners has actual knowledge. Upon motion by the petitioner, the court may order such shorter periods of prior notice as may be justified by the facts of the case. Any such mortgagee or lienor shall be entitled to become a party within fourteen days following such service or such other time as the court may allow, by filing an appearance and a statement setting out the mortgagee’s or lienor’s interest in the litigation. Thereafter, with permission of the court for good cause shown, such a mortgagee or lienor may become a party but shall not be entitled to remove the case pursuant to section 127G; a mortgagee of a mortgage granted by the receiver shall be entitled to become a party at any time but shall not be entitled to remove the case pursuant to said section one hundred and twenty-seven G. A receiver shall not be appointed, except following a court hearing, until after notice has been given to all parties, mortgagees and lienors of record.
Whenever a petitioner shows that violations of the sanitary code will not be promptly remedied unless a receiver is appointed and the court determines that such appointment is in the best interests of occupants who reside or in the future may reside in the property, or any abutter for whom the property poses an immediate and material risk to health or safety, the court shall appoint a receiver of the property. A receiver may be appointed for occupied or unoccupied residential property, vacant lots, or commercial premises so long as the subject property poses an immediate and material risk to the health or safety of an occupant.
Any receiver appointed under the above paragraph may be removed by the court upon a showing that the receiver is not diligently carrying out the work necessary to bring the property into compliance with the code, or that it is in the best interest of any tenants residing in the property or any abutter thereto that removal occur. A receivership may be terminated, after hearing, upon a showing that the property has been brought into substantial compliance with the code and upon reasonable assurance by the owner of continued compliance, or that there is other good reason warranting termination of the receivership.
In determining the necessity for a receiver, the court shall determine whether one or more mortgagees or lienors are willing and able to make the necessary repairs within a reasonable time as determined by the court. In the event that a state authority, state agency or instrumentality thereof is a mortgagee or lienor, and the court determines that it is willing and able to make the necessary repairs, the court shall permit such authority, agency or instrumentality to make the necessary repairs. If there is no such state authority, state agency or instrumentality thereof willing and able to make the repairs, the court shall permit such mortgagees or lienors the opportunity to do so upon such terms as the court deems reasonable, unless there is good cause not to give such permission. If the court determines that a mortgagee or lienor is willing and able to make said repairs and permits such mortgagee and lienor to do so, then the court shall not appoint a receiver unless the mortgagee or lienor thereafter fails to promptly make the repairs.
Prior to appointment, the receiver shall furnish a bond with or without sureties in an amount deemed adequate by the court unless the court waives the bond requirement for good cause shown. Upon appointment, the receiver shall record or file a copy of the appointment in the registry of deeds or land registration office, as appropriate, for the district in which the property is located, and the appointment shall be indexed in the grantor index of the registry of deeds under the name of the property owner and noted on the certificate of title for the property, if the title is registered. Such appointment shall not be effective with respect to third parties until such recording or filing. In the event the court appoints a receiver and general liability insurance is available and affordable, the receiver shall obtain, as soon as reasonably practicable, general liability insurance, with or without exclusion of certain risks, and the receiver shall cause the property to be repaired and brought into compliance with the state sanitary code. Until such repairs are completed, the receiver shall operate and maintain the property and may insure it against casualty, if casualty insurance is available and affordable. Upon completion of repairs and restoration of compliance with the sanitary code, the receiver shall so advise the court and all parties to the action.
In order to pay for repairs to the property, necessary operating and maintenance costs during repairs, taxes and other municipal charges, and for reasonable expenses of the receivership, including compensation of the receiver, the receiver shall be authorized to collect rents and any insurance proceeds payable on account of casualty to the property, whether such casualty is incurred before or after appointment of the receiver. If such collections are insufficient to pay the costs necessary for repairs to the property, necessary operating and maintenance costs during repairs, taxes and other municipal charges, and for reasonable expenses of the receivership, including compensation of the receiver, the receiver shall, in order to secure payment of such costs, have a lien with priority over all other liens or mortgages except municipal liens, and such lien priority may be assigned to lenders for the purpose of securing loans for repair, operation, maintenance or management of the property. The receiver shall have full power to borrow funds and to grant security interests on the affected property as hereinafter provided, to make such contracts as the receiver may deem necessary, and, notwithstanding any special or general law to the contrary, shall not be subject to any public bidding law nor be considered a state, county or municipal employee for any purpose.
The receiver shall file a list of estimated expenses and a statement of the maximum loan amount, if any, sought by the receiver for court approval after hearing. The receiver shall provide fourteen days notice of said hearing to all parties. Upon motion of the petitioner the court may order such shorter period of prior notice as may be justified by the facts of the case. Such notice shall be accompanied by a list of estimated expenses and a statement of the maximum loan amount for which court approval is sought. If, after hearing, the court finds that the amount sought or a lesser amount appears to be fair and reasonably necessary for purposes of the receivership, the court shall enter an order authorizing the receiver to borrow funds up to such an amount and to grant a mortgage or assign its priority lien with respect to the property under receivership to secure repayment of the loan and interest thereon. Within ninety days following entry of the order or such further time as the court may order, the receiver may borrow funds up to the amount authorized and assign its priority lien to the lender or grant to the lender a mortgage on the property under receivership upon such terms as are reasonable. In selecting a lender, the receiver shall give preference to the existing mortgagees and lienors in order of their priority, unless there is good cause, including uncompetitive or unreasonable loan terms, not to do so.
The receiver shall file with the court and with all parties on record, on a bimonthly basis, an accounting of all funds received by and owed to the receiver and all funds disbursed and shall comply with such other reporting requirements mandated by the court, unless, for cause shown, the court determines that less frequent or less detailed reports are appropriate.
Upon assignment of the receiver’s priority lien pursuant to the terms of this section, the amount of the lien assignment shall be limited to the amount of funds which have been expended for repairs to the property, necessary operating and maintenance costs during repairs, taxes and other municipal charges, and for reasonable expenses of the receivership, including compensation of the receiver.
If the receiver grants a mortgage to borrow funds and assigns its priority lien to a lender to secure repayment of the loan with applicable interest in accordance with the provisions of this section, such mortgage or lien assignment shall be recorded or filed within twenty days from the date of making of the loan in the registry of deeds or land registration office, as appropriate, for the district in which the property is located. No such mortgage or lien assignment shall be effective unless so recorded. If properly recorded with the registry of deeds or filed with the land registration office, as appropriate, for the district in which the property is located, such mortgage or lien assignment shall have priority over all other liens or mortgages except municipal liens and prior lien assignments and mortgages granted by the receiver or by a predecessor receiver or receivers appointed under this section. The mortgage or lien assignment shall recite: (i) the names of the property owners, the receiver and the mortgagee or assignee; (ii) the deed to the property; (iii) the court’s order creating the receivership; (iv) the court’s order authorizing the borrowing; and (v) the amount and terms of the loan secured by the mortgage or lien assignment. A certified copy of the order authorizing such mortgage or lien assignment shall be recorded or filed with the mortgage or lien assignment.
The mortgage or lien assignment shall reference both the property owner and the receiver as grantors but need not be executed by the property owner. The deed shall bear a marginal reference or entry reflecting the mortgage or lien assignment and the mortgage or lien assignment shall be indexed in the grantor index of the registry of deeds under the names of the property owner and the receiver and shall also be indexed on the list of encumbrances on the certificate of title, as appropriate. In the event that a receiver grants a mortgage or lien assignment to a lender pursuant to this section, prior to termination of the receivership for the reasons set forth herein, the court shall enter an order obligating the owner to repay the balance of the loan with interest according to its terms.
Notwithstanding any other provisions of law, a lien upon land established under the terms of this section may be enforced by motion to the court which has ordered the appointment of the receiver. No such motion shall be filed until written demand for payment has been made to all parties in interest, and such parties in interest have failed to make payment within thirty days of such demand. A copy of the motion shall be served upon all parties in interest at least fourteen days prior to the court’s hearing of such motion, and all parties in interest may appear and have their rights determined pursuant to such motion. The terms “party in interest” and “person in interest,” as used in this section, shall include mortgagees and attaching creditors.
When the amount of a lien under this section has been established by the court, the court shall enter an order authorizing the sale of the real estate by public auction to satisfy such lien. An attested copy of the court’s order shall be filed and recorded in the registry of deeds or land registration office, as appropriate, for the district in which the property is located, where it shall be open to public inspection. The lienor may do all acts authorized by such order, but no sale pursuant to such order shall be effective unless, prior to such sale, notice thereof has been given in the same manner as set forth in section 5A of chapter 254. Unless otherwise ordered by the court, such sale of the property shall convey the property free from all existing mortgages and liens, excepting municipal liens.
The assignee of a priority lien created by the terms of this section who seeks to enforce his interest shall follow the same procedures set forth in this section for the enforcement of a priority lien by the assigning receiver. A mortgagee who, under the terms of this section, receives a mortgage on the property which is subject to the receivership may, upon breach of the conditions of the mortgage, foreclose on his interest pursuant to the terms set forth in chapter 244.
At any time during the existence of a receivership or one year following its termination, in the event the terms of the mortgage granted by the receiver are breached, the mortgagee shall be entitled to foreclose the mortgage and such mortgagee may petition the court for an order limiting such mortgagee’s liability on account of then existing conditions in the property. Following notice to all occupants of the property and a hearing, the court may order limitation of the mortgagee’s liability on account of such conditions for a period not to exceed sixty days upon a showing by the mortgagee that existing conditions in the property are not in accordance with the state sanitary code or applicable law, that the mortgagee must take possession in order to make the necessary repairs, and that a specified time period will be necessary for these repairs to be made. Prior to such an order limiting liability, in the event conditions in the property are unknown and a mortgage granted by the receiver is in default, upon petition by the mortgagee, following notice to all occupants and a hearing, the court may enter an order which establishes reasonable terms and conditions for the inspection of the property at the expense of the mortgagee. Following an order limiting liability, in the event the repairs are so extensive that with due diligence the repairs cannot be made within the applicable limitation period, upon petition by the mortgagee, the court, after notice to the occupants and a hearing, may extend the initial or extended period of limitation of liability for a further period of no more than sixty days.
No order limiting liability or extension thereof shall be interpreted to limit the right of any tenant or occupant in the mortgaged premises to: (i) withhold rent due to any defective conditions in the premises; (ii) raise,by defense or counterclaim, any claim allowed under section 8A of chapter 239; or (iii) bring any petition or action to enforce the provisions of the sanitary code or other health and safety laws.
Nothing in this section shall be deemed to relieve the owner of property of any civil or criminal liability or any duty imposed by reason of acts or omissions of the owner, nor shall appointment of a receiver suspend any obligation the owner or any other person may have for payment of taxes, of any operating or maintenance expenses, or of mortgages or liens, or for repair of the premises.
The receiver shall be liable for injuries to persons and property that accrue after the date of the appointment of the receiver to the same extent that the owner would have been liable; however, such liability shall be limited to assets and income of the receivership, including any proceeds of insurance purchased by the receiver in its capacity as the receiver. The receiver shall in no instance be personally liable for actions or inactions within the scope of the receiver’s capacity as receiver. No suit shall be brought in any court against the receiver except with the permission of the court which appointed the receiver. A plaintiff shall seek such permission by filing a request for permission to file a suit against the receiver, together with a copy of the proposed complaint. If, after hearing, the court which appointed the receiver finds that the proposed suit lacks substantial merit, the court shall enter an appealable judgment disapproving the suit. If, after hearing, the court finds that the proposed suit has substantial merit, the court shall permit the suit to be filed in a court with jurisdiction. While a request to file a suit against the receiver is pending or is on appeal, the applicable statute of limitations shall be tolled. Nothing herein shall be construed to limit the right of tenants to raise any counterclaims or defenses in any summary process or other action regarding possession brought by a receiver.
A tenant in or the owner of a condominium unit shall be entitled to file a petition under section 127C of this chapter against the organization of unit owners for conditions existing in common areas or in the common systems of the building. Following the filing of such a petition for receivership, if, after a hearing for which notice has been given to the organization of unit owners, the court determines that the allegations of the petition are nonfrivolous and concern matters for which appointment of a receiver would be appropriate, the court shall enter an appropriate order for service of the petition and issue notice of hearing to all unit owners of record, all holders of mortgages on the units who have given notice thereof to the organization of the unit owners pursuant to clause 5of section 4 of chapter 183A, and to any holder of a mortgage or lien of record of the interest of the organization of unit owners.
Any owner, mortgagee or lienor receiving or entitled to receive notice of such hearing shall be entitled to become a party thereto by filing an appearance and a statement of the person’s or entity’s interest in the litigation within fourteen days of notice to such person or such further time as the court may allow. Thereafter, with permission from the court for good cause shown, an owner, mortgagee or lienor may become a party but shall not be entitled to remove the case pursuant to said section 127G. In determining the necessity for a receiver the court shall consider whether one or more of such owners, mortgagees, or lienors are willing and able to promptly cause the necessary repairs to be made, and, if so, the court shall permit such owners, mortgagees, or lienors the opportunity to do so upon such terms as the court deems reasonable unless the court finds that there is good cause not to do so.
In the event a receiver is appointed hereunder for an organization of unit owners, the receiver shall have the powers provided in this section and the receiver shall have the powers and rights of the organization of unit owners provided in said chapter of 183 A. Notwithstanding the foregoing, the receiver shall not adopt a budget on which to base common expense assessments, shall not make special assessments, and shall not borrow from the organization of unit owners, except with the approval of the court after hearing and notice of the proposed budget and a determination of the court that said budget assessment or borrowing is reasonable and in the best interests of the organization of unit owners. Further, nothing under the provision of this statute is intended to create third party liability on the part of mortgagees or any other lienors of the receiver.
The Department of Housing and Community Development, in consultation with the State Office of the Attorney General, shall be directed to complete a study to establish suggested minimum qualifications for court-appointed housing receivers and said study shall be filed with the clerk of the Housing Court, along with any proposed legislation to implement said program.

SECTION 12. Section 3 of chapter 185C of the General Laws, as so appearing, is hereby amended by striking out, in line 13, the word “twenty-seven H” and inserting in place thereof the following:- “twenty-seven I”.

SECTION 13. Section 8A of chapter 239 of the General Laws, as so appearing, is hereby amended by striking out, in line 74, the word “twenty-seven H” and inserting in place thereof the following:- “twenty-seven I”.

SECTION 15. Section 59 of Chapter 143 of the General Laws, as so appearing, is hereby amended by adding after the first paragraph, a second paragraph as follows:-
”Whenever a petitioner shows that violations of the state building code will not be promptly remedied unless a receiver is appointed, and the court determines that such appointment is in the best interests of public safety, the court shall appoint a receiver of the property.”

SECTION 16. Section 13 of Chapter 79A of the General Laws, as most recently amended, is hereby stricken and replaced with the following:-

Section 13. Whenever a public agency displaces one or more persons by enforcing Article II of the state sanitary code, pursuant to section one hundred and twenty-seven B of chapter one hundred and eleven, the owner, mortgagee, or lienor or the managing agent of said property shall be responsible for all expenses incurred by any municipality or public agency for the purpose of carrying out such an order. The municipality or public agency shall, in order to secure payment of such costs, have a lien with priority over all other non-municipal liens or mortgages. Such lien priority may be assigned to lenders for the purpose of securing loans for repair, operation, maintenance or management of the property in instances where a receiver is appointed by the court to remedy violations of the sanitary code.