When Fire Strikes: What Rental Property Owners Should Know About Control

Pullman & Comley Real Estate and Business and Finance Attorney Daryl M. Johnson authored the BusinessWest article, “When Fire Strikes: What Rental Property Owners Should Know About Control.” In the piece, she explains how in cities like Springfield and other municipalities across Massachusetts, local ordinances can significantly limit what property owners and mortgage lenders may do with fire insurance proceeds after a building is damaged.

Daryl details how municipalities can intervene through housing court, impose liens, or even place a property into receivership, limiting the property owner's ability to refinance, repair, or sell: “When a building is declared uninhabitable, condemned, or becomes a blighted nuisance, local governments can, and will, step in.” She also notes that lenders are not exempt from these restrictions and may be required to escrow insurance funds or comply with code enforcement before satisfying a mortgage. The article provides guidance for owners and lenders, emphasizing early engagement with code enforcement officials, securing the property, and consulting legal counsel to navigate housing court procedures and municipal regulations.

To read the full article, please visit the BusinessWest website.