Cal. Civ. Code § 127J
Petition by receiver to apply for financial assistance; notice and hearing; financial assistance; lien
Operative Text
Section 127J. A receiver may petition the court for leave to apply for financial assistance from the commonwealth to supplement funds otherwise available from rents, if he deems that the rents are insufficient to effectuate the necessary repairs or rehabilitation. Seven days' notice of a hearing on said petition shall be given to the respondent as well as any mortgagees or lien holders of record. The court, after hearing, may, by decree, authorize the receiver to apply for such financial assistance, if it finds such assistance is necessary, that it is in a reasonable amount and that the sum required to repair and rehabilitate the premises is not so excessive as to constitute an imprudent and unreasonable expenditure to accomplish the purpose. Application for financial assistance shall be made to the department of public health in such manner and on such forms as may be prescribed by said department. Said department may expend for such assistance such sums as may be appropriated therefor. The receiver shall return any unused portion of any sums received by him to the commonwealth. The balance owed by the receiver to the commonwealth shall, together with interest thereon at the rate of six per cent per annum, constitute a debt due the commonwealth, upon the rendering of an account therefor to the owner of record, and shall be recoverable from such owner in an action of contract. Any such debt, including interest thereon, shall constitute a lien on the property involved, if a notice of such lien is recorded on behalf of the commonwealth in the proper registry of deeds within ninety days after the debt becomes due. Any proceeding under this section may be advanced for speedy trial.
Mass. Gen. Laws c. 111 § 127J establishes a process by which a court-appointed receiver overseeing a residential property can seek state financial assistance when rental income alone is insufficient to fund necessary repairs or rehabilitation. The court must hold a noticed hearing and make specific findings—including that the assistance is necessary, reasonable in amount, and not an imprudent expenditure—before authorizing the receiver to apply to the Department of Public Health. Any funds advanced by the commonwealth that are not repaid become a debt bearing six percent annual interest, and if a lien notice is recorded in the appropriate registry of deeds within ninety days of the debt coming due, that debt attaches as a lien on the property itself.
Plain English — not legal advice.
Under Mass. Gen. Laws c. 111 § 127J, a property owner whose building is under receivership should be aware that a receiver can initiate a court process to obtain state rehabilitation funds without the owner's consent, though the owner is entitled to seven days' notice before any hearing on such a petition. Owners and any mortgagees or lienholders of record have the opportunity to appear at that hearing and be heard before the court issues any decree. Because any unreturned commonwealth funds—plus six percent annual interest—can become a lien on the property if properly recorded within ninety days, property owners and their lenders generally monitor receivership proceedings closely and review any accounts rendered to the owner of record.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Mass. Gen. Laws c. 111 § 127J can be relevant to tenants living in a property under court-ordered receivership, because it provides a mechanism for the receiver to access state funds when rents are not enough to cover the cost of bringing the building into habitable condition. Tenants in such buildings may find it useful to stay informed about receivership proceedings in their local court, as the availability of this funding pathway can affect the pace and scope of repairs. Tenant-rights organizations and legal aid offices familiar with Massachusetts housing law can help tenants understand how receivership proceedings under this section may affect their rights and living conditions.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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