HomeMy WebLinkAbout9 Delinquency Updates for Old Greenwood and Grays Crossing Agenda Item # 9
TRUCKEE DONNER
PublicDistrict
ACTION
To: Board of Directors
From: Robert Mescher
Date: August 20, 2014
Subject: Consideration of Foreclosures in the Community Facilities Districts;
and Delinquency Updates for Old Greenwood and Gray's Crossing
1. WHY THIS MATTER IS BEFORE THE BOARD
Adoption of a foreclosure resolution and contracting with a foreclosure attorney are the
next steps in the collection of delinquent Community Facilities District (CFD)
assessments.
2. HISTORY
In 2003, the Board formed a CFD for the Old Greenwood development. In 2004, the
Board formed a CFD for the Gray's Crossing development. Both CFDs were formed
for the purpose of selling bonds to pay for portions of the infrastructure in both the Old
Greenwood and Gray's Crossing developments.
The property owners in each CFD have been annually assessed through their property
tax bill to pay the principal and interest on the bonds.
Each year since 2010, the Board has adopted a foreclosure resolution authorizing staff
and special counsel to proceed with the foreclosure process on all parcels with
delinquent assessments in both CFDs.
Last year, there were approximately sixteen parcels with delinquencies. Three of those
parcels were large undeveloped multi-family parcels owned by the developers LDK
and Gray's Station. The parcels have income restrictions and the developers have no
intent to pay future and delinquent assessments. Previous Sheriffs sales failed to
obtain the minimum bid on those parcels.
The remaining parcels were single-residential lots owned by individuals.
3. NEW INFORMATION
STATUS OF PRIOR DELINQUENCIES
No status has changed with the three large undeveloped parcels. The developers
LDK and Gray's Station have no intent on paying future or past delinquencies due to
the income restrictions on the parcels.
Of the remaining thirteen parcels, six parcels have paid and are now current. Two
parcels are scheduled for a Sheriff sale on 9/10/14. The District is either in process or
has received Writs-of-Sale from the court for the remaining parcels. After receiving the
Writs-of-Sale, the Nevada County Sheriffs Office will schedule a sale. Obtaining the
Writs-of-Sales and scheduling the auctions has taken longer than expected due to
budget cuts at Nevada County leaving the county staff short handed.
Stradling Yocca Carlson and Rauth is continuing to work with Nevada County to obtain
the Writs-of-Sale and schedule Sheriff sales .
NEW DELINQUENCIES
Attachment 1 lists the parcels that did not pay their assessments this past year. There
are forty-six delinquent parcels in Gray's Crossing and five delinquent parcels in Old
Greenwood. This list includes the ten parcel owners described above. The three
largest delinquent assessments from Gray's Crossing are the three largest parcels
mentioned above.
Attachment 2 and Attachment 3 are maps of the delinquent parcels in Old Greenwood
and Gray's Crossing.
FORECLOSURE CRITERIA
The bond covenant defines when the foreclosure proceedings apply. The criteria for
when the Board must proceed with foreclosure are:
A) A parcel or property owner is past due more than $7,500, or
B) If more than 5% of the amount billed is past due, all past due parcels are subject to
foreclosure.
There are five property owners in Old Greenwood with delinquent assessments. Two
are from prior years and three are from the 2013/2014 levy. The total past due for Old
Greenwood 2013/2014 assessments is $10,995. One parcel has a total delinquency
including prior year's assessments that is more than $7,500. The Board must proceed
with foreclosure on that parcel and may proceed with foreclosure on the other four.
There are forty-six property owners in Gray's Crossing that are delinquent. The
delinquent assessments totaling $720,554 exceeds 5% of the amount billed. The
Board must proceed with foreclosure on all of the parcels.
All of the property owners have received reminder letters and demand letters prepared
by Willdan Financial, the firm that administers the collection of the assessments.
Willdan has also sent a letter to the lenders and copied the property owners.
SPECIAL COUNSEL
Stradling Yocca Carlson & Rauth has six offices throughout California and they have
done an excellent job in collecting most of the delinquencies from last year.
4. FISCAL IMPACT
There is no fiscal impact to Truckee Donner Public Utility District with this action item.
All charges incurred related to the judicial foreclosure process are the responsibility of
the property owners in the CFD.
Approximately $280,000 will need to be drawn from the Gray's Crossing Reserve Fund
to make the $1.3 million bond payment because of the accumulated Gray's Crossing
delinquencies. Most of the total assessment delinquencies are due to the three large
undeveloped parcels with income restrictions. Drawing from the Reserve Fund is a
reportable event to the bond holders.
Total Special Tax Fund $ 960,000
Total Surplus Fund 80,000
Available Funds $1,030,000
Reserve Fund Draw 280,000
Payment due 09/1/2014 $1,310,000
5. RECOMMENDATION
a) Adopt the attached foreclosure Resolution 2014-19 (Attachment 4) authorizing staff
and special counsel to proceed with the foreclosure process on all parcels with
delinquent assessments in both Old Greenwood and Gray's Crossing CFD.
b) Authorize the Board President to extend the agreement for legal services with
Stradling Yocca Carlson & Rauth for their work relating to the foreclosure on
delinquent parcels in both Old Greenwood and Gray's Crossing CFD.
Robert Mescher Michael D. Holley
Administrative Services Manager General Manager
CFD Delinquent Assessments ATTACHMENT 1
(Excludes penalty, interest, and fees)
Gray's Crossing CFD
2013 2014 Prior Years Total
APN Owner Past Due Past Due Past Due
19-770-02 Gray's Station 207,995 602,378 810,373
19-770-13 Frank Seelig 3,466 8,362 11,828
19-780-03 Douglas Sumaraga 3,585 3,515 7,100
19-800-04 Otis McGee 1,793 - 1,793
19-800-15 Douglas Sumaraga 3,705 14,107 17,812
19-840-08 Andree Wood 2,241 - 2,241
19-840-10 Travis Reich 2,241 - 2,241
19-840-11 Travis Reich 2,241 - 2,241
19-840-12 Travis Reich 2,315 - 2,315
19-840-14 No Name 11684 Kelly Dr. 2,315 - 2,315
19-850-03 Incline Land Co 2,241 - 2,241
19-870-02 Coral Quiet 2,315 - 2,315
19-870-09 Drake & Nannette Niven 4,482 10,812 15,294
19-870-13 Gerald Quinlan 4,332 - 4,332
19-910-02 Gary & Cherene Ifland 2,390 4,687 7,077
19-910-05 Grace Ferneynes 2,166 - 2,166
43-010-05 LDK GC 81, LLC Gray's Station LLC 96,670 279,967 376,637
43-010-07 LDK GC 81, LLC Gray's Station LLC 165,861 480,351 646,212
43-030-13 Trailside Builder Inc. 2,465 - 2,465
43-040-11 Grace Ferneynes 4,930 - 4,930
43-040-12 Trailside Builder Inc. 2,465 - 2,465
43-040-14 Russ Kaulback 2,465 - 2,465
43-050-02 Village at Gray's Crossing 846 - 846
43-050-03 Village at Gray's Crossing 564 - 564
43-050-04 Village at Gray's Crossing 986 - 986
43-050-05 Village at Gray's Crossing 846 - 846
43-050-06 Village at Gray's Crossing 564 - 564
43-050-07 Village at Gray's Crossing 986 - 986
43-050-08 Village at Gray's Crossing 846 - 846
43-050-09 Village at Gray's Crossing 986 - 986
43-050-17 Village at Gray's Crossing 846 - 846
43-050-18 Village at Gray's Crossing 986 - 986
43-050-19 Village at Gray's Crossing 846 - 846
43-050-20 Village at Gray's Crossing 986 - 986
43-050-21 Village at Gray's Crossing 14,233 - 14,233
43-060-01 Village at Gray's Crossing 11,273 - 11,273
43-060-02 Village at Gray's Crossing 11,555 - 11,555
43-060-04 Village at Gray's Crossing 20,010 - 20,010
43-060-05 Village at Gray's Crossing 17,333 - 17,333
43-060-06 Village at Gray's Crossing 7,891 - 7,891
43-060-08 Village at Gray's Crossing 5,778 - 5,778
43-070-01 Village at Gray's Crossing 60,313 - 60,313
43-070-02 Village at Gray's Crossing 4,650 - 4,650
43-070-03 Village at Gray's Crossing 8,314 - 8,314
43-070-05 Village at Gray's Crossing 15,924 - 15,924
43-070-06 Village at Gray's Crossing 8,314 - 8,314
46 Total 720,554 1,404,180 2,124,734
Old Greenwood
2013 2014 Prior Years Total
APN Owner Past Due Past Due Past Due
19-740-21 Ezekiel &Susan Straw - 5,204 5,204
19-750-19 Trevor &Jennifer Sanders 3,585 - 3,585
19-750-39 James Wogan 3,585 10,340 13,925
19-750-43 Charles Anderson 1,793 - 1,793
19-940-18 Mathew & Stephanie Hein 2,032 - 2,032
5 Total 10,995 15,544 26,539
Attachment 2
Failed Auction
New Delinquency
Sherif Sale Imminent
Writ of Sale
ay
10
�e5 ae
re�y���e O �dy0
� i�0�
�
Fr
eye oht��^
4.
Legae�
t
�6 �ttets fir\ c rsOn Range G
S�
ca LQ
r
a
J
J
• O
—! 0 Settlers Ln
t
Ave e e
YMPIC v
Attachment 3
15. d
- Failed Auction N �� White ail CtoaG`
New Delinquency �' R Inbow C Snow Sr Ida as
Sherif Sale Imminent
Writ of Sale U
a
gottcher Lp
CO
�a
o `gym
U
e
V �
gape\\e
e�
a� t
i
t0
Q
O�
Chi
10
h
F a
Uo Saad\ �4o dfi
Hinton Ln
6a
o6 to 80
Attachment 4
2. The District President of the Board is authorized to retain Stradling Yocca Carlson &
Rauth, a law firm, as special counsel on the terms set forth in the agreement
presented to the Board to prosecute the foreclosure actions and to collect on behalf
of the CFDs all amounts due on account of the special taxes listed in Exhibits Al
and any subsequent delinquent special taxes.
3. The Board finds that the Act provides for the payment of the costs and attorneys
fees for prosecution of the foreclosures authorized by the District and hereby
authorizes Attorneys to require payment on its behalf of all costs and all attorneys
fees incurred as to each delinquent parcel as a condition of such redemption as
provided in the agreement.
Adopted by the Board of Directors of the Truckee Donner Public Utility District acting on its
own behalf and as the Legislative Body of all of its Community Facilities Districts at a
regular meeting held on August 20, 2014, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Tony Laliotis, President
ATTEST:
Michael D. Holley, PE. Clerk of the Board
Resolution 2013-XX 2
Attachment 4
TRUCKEE DONNER
Public Utility District
RESOLUTION NO. 2014 - 19 LF
RESOLUTION OF THE BOARD OF DIRECTORS OF
THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT
ACTING ON ITS OWN BEHALF AND AS THE GOVERNING BODY OF ALL
OF ITS COMMUNITY FACILITIES DISTRICTS
(OLD GREENWOOD No. 03-1 AND GRAYS CROSSING No. 04-1)
AUTHORIZING RETENTION OF SPECIAL COUNSEL
WHEREAS, the Truckee Donner Public Utility District (the "TDPUD") has conducted
proceedings resulting in the formation of Community Facilities Districts ("CFDs"; the
District and the CFDs are collectively referred to as "District") and the issuance and sale of
bonds or debt pursuant to the Mello-Roos Community Facilities Act of 1982 (Cal. Gov.
Code Section 53311, et seq.; the "Act"); and
WHEREAS, pursuant to the Act, the District has duly recorded Notices of Special Tax Lien
and has duly and regularly levied CFD special taxes, which special taxes and interest and
penalties thereon constitute a lien against the parcel of the land against which it was levied
until the same are paid, which liens secure :in, whole or part debt issued pursuant to the
Act; and
WHEREAS, certain installments of the special taxes have not been paid when due, and
certain special taxes may not be'paid when due in the future; and
WHEREAS, pursuant to Section:53356.1(a) of the Act, the District is authorized to order
the special taxes collected by an action brought in the Superior Court to foreclose their
liens; and
WHEREAS, pursuant ,to Section 53356.1(b) of the Act, the District covenanted for the
benefit'of owners of the debt to file such foreclosure actions on behalf of the debt holders
and are authorized to order the County Auditor to credit the delinquent special taxes upon
the secured tax roll, thus relieving the County Tax Collector of further duty and regard
thereto; and,',
WHEREAS, the District wishes to retain experienced, qualified counsel to prosecute such
judicial foreclosure actions,
NOW THEREFORE, BE IT RESOLVED by the Board of Directors of the TDPUD acting on
its own behalf and as the Legislative Body of all of the District CFDs that:
1. The Board finds that the Act authorizes the commencement of judicial foreclosure
proceedings to collect delinquent special taxes, and hereby orders that the
delinquent special taxes listed on the attached Exhibits Al and all future delinquent
special taxes as to such property, be collected by action brought in the appropriate
Superior Court to foreclose the liens thereof.
Resolution 2014-19 1