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HomeMy WebLinkAbout11 CFD Consideration of Annual Foreclosure Process and Council ACTION ITEM #11Foreclosures in the CFDs21, in Regards to -Resolution 2019Annual Consideration ofForeclosures in the CFDs21, in Regards to -Resolution 2019Annual Consideration of BACKGROUND / HISTORY CFDs parcels with delinquent assessments in both proceed with the foreclosure process on all to staff Authorizing •resolutionBoard has adopted a foreclosure Since 2010 the •bonds pay the principal and interest on the through their property tax bill to Property owners are annually assessed •finance infrastructure to CFDs were formed Both •developmentGray’s Crossing for 2004, the Board formed a CFD In •developmentOld Greenwood for In 2003, the Board formed a CFD •Community Facilities Districts UpdateCommunity Facilities Districts Update Community Facilities Districts Update The Board has routinely proceeded with foreclosure on all parcels in the past•proceed with foreclosure on all parcelsmayThe Board •billednot exceed 5% of the amount total $12,001 and do assessments Delinquent •delinquent are Greenwood Old properties in 4•all parcelsproceed with foreclosure on mustBoard The •billed5% of the amount total $351,525 and exceed assessments Delinquent •delinquent are Crossing Gray’s 11 properties in •foreclosuresubject to more than 5% of the amount billed is past due, all past due parcels are If B)past due more than $7,500, oris A parcel )A foreclosureproceed with mustBoard •applydefines when the foreclosure proceedings Bond covenant •NEW INFORMATION Community Facilities Districts Update Community Facilities Districts Update delinquencies excellent job in collecting SYCR has done an •(SYCR)RauthCarlson & YoccaStradlingounsel cpecial swithcontracted has annually District foreclosure the with To proceed •NEW INFORMATION Community Facilities Districts Update Community Facilities Districts Update District Drawing from the reserve is a reportable event, the report has completed by the •of $3.3MCurrent reserve balance is just under $2.7M compared to a reserve requirement •%)Majority of the total CFD tax delinquency (99•family parcels remain undeveloped-The three large multi•CFD drew $238,694 from reserve funds to make the 9/1/2019 debt payment •Gray’s Crossing CFD: •make debt service paymentsCFD is solvent there is low risk of insufficient funds to Greenwood Old •NEW INFORMATION Community Facilities Districts Update FISCAL IMPACT District is a separate legal entity from the CFDs The •CFDof the property owners within the responsibility the process are the foreclosure charges incurred related to All •itemwith this action There is no fiscal impact to the Truckee Donner Public Utility District •Community Facilities Districts UpdateCommunity Facilities Districts Update RECOMMENDATION parcelsto the foreclosure on delinquent for their work relating RauthCarlson & YoccaStradlingservices with the General Manager to execute the agreement for legal Authorize 2.CFDsdelinquent assessments within the counsel to proceed with the foreclosure process on all parcels with staff and special 21 authorizing -2019Resolution Adopt foreclosure 1.Community Facilities Districts UpdateCommunity Facilities Districts Update Community Facilities Districts UpdateCommunity Facilities Districts Update BACKGROUND / HISTORY TDPUD adopts recordedTax Roll/Notice is removed from County Delinquent taxes are demand letterproperty owners; 30 day A second letter is sent to No Responsepays delinquenciesowner responds and Property -Response Owners of recordsent to Property A reminder letter is of DelinquenciesTDPUD is notified Special Tax Delinquency process •Community Facilities Districts UpdateCommunity Facilities Districts Update BACKGROUND / HISTORY auction held by Sheriff.Sale of Property at foreclosure Dept.Notice of Sale posted by Sheriff’s instructions.Send to Sheriff’s Dept. with levy Obtain Writ of Execution/Sale. default judgment or summary judgment).SYCR obtains a judgment of judicial foreclosure (via judgmentof default and request for default SYCR prepares entry –No Response motion for summary judgment.defense is payment. SYCR prepares a Property owner’s only –Response delinquencies.responds and pays Property owner –Response property owner has 30 days to respond.. Once served, the pendenslisrecords a SYCR files a judicial foreclosure action and Guarantee, prepares lawsuit.notice letter and orders a Litigation SYCR sends final –No Response letter.SYCR. SYCR sends final demand Delinquency information sent to ) con’tSpecial Tax Delinquency process (•Community Facilities Districts UpdateCommunity Facilities Districts Update Community Facilities Districts UpdateCommunity Facilities Districts Update Community Facilities Districts UpdateCommunity Facilities Districts Update