The Huntington Park City Council on Aug. 18 approved on first reading an ordinance establishing a formal receivership policy for properties placed under court-appointed receivership.

City staff said the ordinance creates procedures and accountability steps to manage blighted properties that enter receivership, intending to prevent fraud, ensure financial oversight, set maintenance standards, require procurement rules for receivers and promote community involvement. The ordinance also includes training and oversight provisions for appointed receivers and requires reporting back to the city to protect public resources.

Council members emphasized the sensitivity of municipal involvement in receivership because court orders can transfer control of private property to a receiver. The city attorney noted that if a court order contains terms that conflict with the municipal policy, the court’s order takes precedence; the municipal ordinance is intended to guide city practice when the city is involved in receivership matters.

Supporters said the ordinance will add transparency and reduce the risk that receivership assets could be mismanaged or sold without appropriate oversight. The ordinance cleared first reading and will return for the required second reading for final adoption.