New Haven, Conn., Code of Ordinances tit. V § 508
Expenditures and application of funds (New Haven Housing Code)
Operative Text
All rents, issues and profits collected or received by the receiver shall be expended or applied in the following order of priority: (1) To pay the cost of removing or remedying the nuisance which was the subject to the rule to show cause; (2) To pay the expenses of the receiver and such reasonable fee or fees as he may be awarded by the court; (3) To pay the cost of repairing and maintaining the property in a safe and healthful condition and to pay the expenses reasonably necessary for the proper operation and management of the property, including the fees of the managing agent, if any; insurance premiums; and unpaid taxes, assessments, water and sewer rates, and penalties and interest properly imposed thereon; (4) To reimburse the tenement house operating fund for such monies as may have been received from it as provided herein. Excess funds, if any, held by the receiver, shall be paid over, in the order of entitlement, to mortgagees or other lienors whose mortgages or liens have been properly recorded in the land records of the City of New Haven.
New Haven, Conn., Code of Ordinances tit. V § 508 establishes a strict spending hierarchy for court-appointed receivers who collect rent from properties placed under receivership. The receiver must first use collected funds to address the nuisance that triggered the receivership, then cover the receiver's own expenses and fees, then maintain the property in safe and habitable condition (including taxes, insurance, and utilities), and finally repay the tenement house operating fund. Any money left over after these obligations are satisfied goes to recorded mortgagees or lienholders in order of their legal priority.
Plain English — not legal advice.
Under tit. V § 508, once a receiver is appointed over a property, the owner loses direct control over how rental income is spent, and the court-supervised spending order takes precedence over any other financial obligations the owner might have. Operators who keep properties free of code violations and nuisances generally avoid the receivership process that triggers this provision. Landlords whose properties are placed in receivership should be aware that funds will be disbursed according to the statutory priority list before any surplus reaches lienholders or the owner.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tit. V § 508 is designed to ensure that rent money collected during a receivership is directed first toward fixing the very conditions—nuisances and unsafe or unhealthy conditions—that led to the receivership in the first place. Tenants living in a property under receivership can monitor whether the receiver is fulfilling this obligation, since the court oversees the receiver's expenditures. Tenants who believe funds are not being applied in accordance with this priority order may raise that concern through the court overseeing the receivership or by contacting a local tenant-rights organization for guidance on available options.
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 17, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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