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HomeMy WebLinkAbout8 CFDs ACTION ITEM #8Updatesthe CFDs and CFD Delinquency Consideration of Foreclosures in Updatesthe CFDs and CFD Delinquency Consideration of Foreclosures in October 04, 2017 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 delinquent parcels in Old Greenwood 6•family parcels-again the three largest multiare delinquent assessments argest L•Crossingdelinquent parcels in Gray’s 31 •This year•parcels have since paid 16 parcels, 19 the remaining Of •lotsremaining parcels were single family residential The •Each failed to obtain minimum bids at the last Sheriff's sale •family parcels -of those parcels were large undeveloped multiThree •delinquencies in Gray’s Crossingparcels with 22 •yearLast •BACKGROUND / HISTORY Community Facilities Districts Update Community Facilities Districts Update NEW INFORMATION Community Facilities Districts Update Community Facilities Districts Update 7,500billed and no owner is past due more than $not exceed 5% of the amount total $11,342 and do assessments Delinquent •delinquentare Greenwood property owners in Old 6 •parcelsproceed with foreclosure on all the mustBoard The •billed5% of the amount total $567,447 and exceed assessments Delinquent •delinquent are Crossing property owners in Gray’s 31 •foreclosureare subject to more than 5% of the amount billed is past due, all past due parcels If B)A parcel or property owner is past due more than $7,500, or)Aforeclosure: proceed with mustBoard •applydefines when the foreclosure proceedings Bond covenant •NEW INFORMATION Community Facilities Districts Update Community Facilities Districts Update delinquenciesexcellent job in collecting most of the SYCR has done an •(SYCR)RauthCarlson & YoccaStradlingSpecial Counsel contracted with has annually District foreclosure the with To proceed •lettersand demand reminder All of the property owners have received •NEW INFORMATION Community Facilities Districts Update Community Facilities Districts Update parcels, remains largely undevelopedfamily and commercial -Gray’s Crossing development, specifically the multi•of the bonds ending in 2032 Greenwood CFD, saving the property owners over $3 million over the term In 2014, the Board authorized the District to refinance the bonds of the Old •payments overall risk of insufficient funds to make debt service Low •mostly completeGreenwood development is Old •NEW INFORMATION Community Facilities Districts Update Community Facilities Districts Update requirement of $3.3MCurrent reserve balance is just under $2.9M compared to a reserve •payment of just under $1.5M debt the recent make to reserve funds CFD drew $368,272 from •year 2009/2010 tax since unpaid Tax assessments remain •Results in a 20% annual special tax delinquency •tax delinquency (97%)CFD total the Majority of •undeveloped remain family parcels -three large multiThe •bankruptcy development agreement and filed for developer, East West Partners, defaulted on their The initial •a challengeremains the Gray’s Crossing CFD of dministration A•NEW INFORMATION Community Facilities Districts Update FISCAL IMPACT Not legally or fiscally responsible for any losses •District is a separate legal entity from the CFDs The •CFD of the property owners within the responsibility the process are 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 FISCAL IMPACT District in September, 2017report was completed by the A •eventfrom the Reserve Fund is a reportable Drawing •paymentmillion bond 1.5 Fund to make the $was drawn from the Gray’s Crossing Reserve Approximately $368,272 •Community Facilities Districts UpdateCommunity Facilities Districts Update RECOMMENDATION parcelsthe foreclosure on delinquent for their work relating to RauthCarlson & YoccaStradlingservices with b) Authorize the General Manager to execute the agreement for legal CFDsdelinquent assessments within the counsel to proceed with the foreclosure process on all parcels with staff and special 12 authorizing -2017Resolution a) Adopt foreclosure Community Facilities Districts UpdateCommunity Facilities Districts Update Backup Slides Community Facilities Districts UpdateCommunity Facilities Districts Update Backup Slides Community Facilities Districts UpdateCommunity Facilities Districts Update Backup Slides Community Facilities Districts UpdateCommunity Facilities Districts Update