The City of Citrus Heights confirmed Monday that the ownership group of Sunrise Mall is facing hefty fines stemming from significant code violations they have been accruing since 2024. 

"The City's records indicate Sunrise Mall Realty/ Namdar paid approximately $7,780, leaving unresolved fines totaling approximately $498,211," a city spokesperson said Monday.

The mall's majority owner, Namdar Realty Group, is actively working to sell the property.

An inspection warrant was served at the mall in May and the city formally issued a notice to abate, meaning the violations must be addressed.

A 50-page city report on the inspection outlines that city code enforcement, health officials, local police and the Sacramento Metro Fire department, for three days, served the warrant.

"The purpose of the inspection was to document numerous violations of building and health and safety codes. This has been precipitated by many complaints from the community and proactive inspections from CE [code enforcement], and lack of responsive corrective measures from the ownership of the properties," the report reads.

Officials say they found dozens of plumbing and electrical violations, water damage, moldy ceilings, structural damage, destroyed walls in the old Macy's, excessive water pooling on the roof and many other problems outlined in the report. There were noted issues like exposed electrical, non-compliant extension cords, trip hazards, an overflowing water fountain in the mall's common areas and a rodent carcass and droppings.

They also found evidence that homeless people were living in the vacant mall properties, including the closed movie theater and the Elephant Bar.

Multiple photos in the report showed makeshift sleeping arrangements, shopping carts inside, clothing hanging up, fire damage and drug paraphernalia and a modified door to grant access to the area.

"A couple of years ago, in the movie theater, I did walk in there and you could tell it's being lived in. After that, I didn't see anybody coming in and out, didn't see anybody walking around the mall, anything like that," said Kevin Cadinha, owner of Perfumes Luxe inside the mall.

Cadinha says they went nearly unnoticed, and still, he and other small business owners feel safe at the mall. They want their customers to feel safe, too.

"We do rely on the community to support us, we need people to understand the mall is open, it's safe to come in," said Cadinha.

It's no secret Sunrise Mall does not look like it used to. With many businesses now closed up and less foot traffic, the businesses still inside are fighting to stay open.

"We are still in here trying to survive. We don't know what the next thing is, when the mall is closing, if it's closing," said Cadinha.

For Cadinha, with the mall's fate uncertain, it was another gut punch to see what violations the city report uncovered.

In March, CBS13 reported that the city council shut down an offer to purchase and redevelop the mall property. The city said the developer's vision did not align with their established "Sunrise Tomorrow" plan, prioritizing the property's long-term future.

"Even without ownership of the property, the City has taken proactive steps to lay the groundwork for redevelopment. That includes completing infrastructure planning, securing environmental clearance, approving a flexible parcel map, and streamlining zoning entitlements. These efforts make the site investment-ready and are especially helpful in attracting hospitality and entertainment partners. The City is using the tools available to local governments to protect the community's interests and move this project forward," said Citrus Heights City Manager Ash Feeney in an update posted online.

He added that maintaining safety and upkeep of the site is not optional for the property owners.

"Regardless of occupancy or ownership status, we are committed to holding property owners accountable and protecting the community's quality of life," said Feeney.

CBS13 reached out to Namdar Realty Group on Monday for comment but has not yet heard back.