HomeMy WebLinkAbout10 Power Point CFD Consideration of Annual Foreclosure Process and Council
September 2, 2020 Foreclosures in the CFDsin Regards to , 22-2020Resolution Annual Consideration of 10ACTION ITEM #
•BACKGROUND / HISTORYBACKGROUND / HISTORY Community Facilities Districts UpdateCommunity Facilities Districts Update parcels with delinquent assessments in both CFDs Authorizing staff
to proceed with the foreclosure process on all •Since 2010 the Board has adopted a foreclosure resolution•bill to pay the principal and interest on the bonds Property owners are annually
assessed through their property tax •Both CFDs were formed to finance infrastructure •In 2004, the Board formed a CFD for Gray’s Crossing development•In 2003, the Board formed a CFD
for Old Greenwood development
•NEW INFORMATIONNEW INFORMATION Community Facilities Districts UpdateCommunity Facilities Districts Update the pastThe Board has routinely proceeded with foreclosure on all parcels in
•The Board may proceed with foreclosure on all parcels•amount billedand do not exceed 5% of the $3,674 Delinquent assessments total •delinquent is in Old Greenwood 1 property •The Board
must proceed with foreclosure on all parcels•billed5% of the amount total $249,523 exceed Delinquent assessments •properties in Gray’s Crossing are delinquent 14 •parcels are subject
to foreclosuremore than 5% of the amount billed is past due, all past due If B)•A parcel is past due more than $7,500, orA)•Board must proceed with foreclosure•Bond covenant defines
when the foreclosure proceedings apply
•NEW INFORMATIONNEW INFORMATION Community Facilities Districts UpdateCommunity Facilities Districts Update SYCR has done an excellent job in collecting delinquencies •(SYCR)RauthCarlson
& YoccaStradlingspecial counsel •To proceed with foreclosure the District has annually contracted with
•NEW INFORMATIONNEW INFORMATION Community Facilities Districts UpdateCommunity Facilities Districts Update by the District completed been Drawing from the reserve is a reportable event,
the report has •requirement of $3.3Mcompared to a reserve 2.6M Current reserve balance is just under $•Majority of the total CFD tax delinquency (99%)•family parcels remain undeveloped
The three large multi•NV County.three parcels as part of parcel auction proceeds applied by Decreased draw due primarily to partial 19/20 payment (indirectly) by the large •($238,694
in 2019) payment debt 9/1/2020 from reserve funds to make the $132,640 CFD drew •Crossing CFD: Gray’s •to make debt service paymentsOld Greenwood CFD is solvent there is low risk of
insufficient funds
•FISCAL IMPACTFISCAL IMPACT Community Facilities Districts UpdateCommunity Facilities Districts Update The District is a separate legal entity from the CFDs •CFDresponsibility of the
property owners within the All charges incurred related to the foreclosure process are the •with this action itemThere is no fiscal impact to the Truckee Donner Public Utility District
•RECOMMENDATIONRECOMMENDATION Community Facilities Districts UpdateCommunity Facilities Districts Update to the foreclosure on delinquent parcelsfor their work relating RauthCarlson
& YoccaStradlingservices with Authorize the General Manager to execute the agreement for legal •delinquent assessments within the CFDscounsel to proceed with the foreclosure process
on all parcels with authorizing staff and special 22 2020Adopt foreclosure Resolution
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