HomeMy WebLinkAbout12 Power Point CFD Foreclosures
Action Item # 12 October 5, 2011 Community Facilities Districtsin the Consideration of Foreclosures
CFD Foreclosures 2 assessmentsLaw firm, Sherman & Feller, retained to collect delinquent •interestParcel owners assessed annually to pay bond principal and –Gray’s Crossing 2004 and
2005–Old Greenwood 2003–Formed to sell bonds to pay for infrastructure–Community Facilities Districts (CFD’s)•
New Information CFD Foreclosures 3 Foreclosure documents need to be filed for 1 delinquency–2 parcels need to be scheduled by the Sherriff’s Office for auction–2 parcels are scheduled
for auction in October 2011–Writ of sale has been received for 4 of the 5 delinquencies–Today 5 assessments from the prior years remain unpaid–August 2010 there were 114 delinquent
assessments–delinquenciesSherman & Feller has been successful in collecting •
New Information CFD Foreclosures 4$628,000 in Gray’s Crossing–$14,000 in Old Greenwood––4 in Old Greenwood & 16 in Gray’s Crossing–5 from prior years & 15 new delinquencies–20 delinquencies
remain–Reminder letters sent by Willdan Financial Services–2010/11 second installment was due April 10, 2011•(cont)
New Information CFD Foreclosures 5 The total delinquency is more than 5% of billed assessments–proceed with foreclosure in Gray’s CrossingmustThe Board •The total delinquency is less
than 5% of billed assessments–No delinquent parcel assessment exceeds $7,500–proceed with foreclosure in Old GreenwoodmayThe Board •assessmentsOn all parcels if total delinquency exceeds
5% of billed –On parcels with delinquent assessments more than $7,500–proceed with foreclosuremustBoard •(cont)
New Information CFD Foreclosures 6 Coordinate collection efforts of any open cases–Initiate collection efforts on new delinquencies–Staff recommends Burke, Williams & Sorensen, LLP–Staff
requested proposals form several foreclosure law firms –New foreclosure attorney needed•Beginning foreclosure process on 15 new delinquencies from this year–Filing foreclosure documents
on last delinquent parcel from prior years––Sherman & Feller is closing their office at end of 2011•(cont)
Fiscal Impact CFD Foreclosures 7 responsibility of the property owners in the CFD’sPayment of the CFD collection fees and legal fees is the •There is no direct fiscal impact to the TDPUD•
Recommendation CFD Foreclosures 8 in both Old Greenwood and Gray’s Crossing CFD’stheir work relating to their foreclosure on delinquent parcels for legal services with Burke, Williams,
& Sorensen, LLP for Authorize the Board President to enter into a fee agreement •parcels in both Old Greenwood and Gray’s Crossing CFD’sproceed with the foreclosure process on all delinquent
Adopt the resolution authorizing staff and special counsel to •