HomeMy WebLinkAbout8, CFD Foreclosures
Action Item # 8 and Delinquency Updates Community Facilities DistrictsForeclosures in the
CFD Foreclosures 2 collect delinquent assessmentsIn 2012, Stradling Yocca Carlson & Rauth were retained to •all parcels with delinquent assessmentsSince 2010, Board has annually authorized
foreclosures on •TDPUD administers CFD assessments and debt service–bond principal and interestParcel owners within the CFDs are annually assessed to pay –Gray’s Crossing 2004 and 2005–Old
Greenwood 2003–CFDs were formed to sell bonds to pay for infrastructure–Roos)-Community Facilities Districts (CFDs or Mello•
CFD Foreclosures 3 family residential parcels-43 single–sale unsuccessfulSheriff’s –StationLDK and Gray’s Owned by –family parcels-Three large multi–In 2014, there were 46 delinquent
parcels in Gray’s Crossing•family residential parcels-All single–In 2014, there were five delinquent parcels in Old Greenwood•
New Information CFD Foreclosures 4 Collection efforts continue–residential lots-All single–13 new delinquencies–Sheriff’s sale unsuccessful–family residential parcels-Two single–Sheriff’s
sale unsuccessful–owned by LDK and Gray’s Station–family parcels -Three large multi–-Five prior–18 delinquencies in Gray’s Crossing•No delinquencies in Old Greenwood•
New Information CFD Foreclosures 5 assessments Potential buyers will be responsible for delinquent and future –liens are in par with County tax liensRoos-Mellos–the auctionFour of the
five previous years delinquencies will be included in –Tax Collector’s office conducting an online auction•
New Information CFD Foreclosures 6 delinquency exceeding 5% of all assessments. proceed on 13 new delinquencies due to the 2015 mustBoard –Gray’s Crossing•delinquenciesproceed with
foreclosure on all other mayBoard •On all parcels if delinquency exceeds 5% of all assessments–On parcels with delinquent assessments more than $7,500–proceed with foreclosuremustBoard
•bond covenant complianceRoos-Mellos
New Information CFD Foreclosures 7 to process foreclosuresRauth& CalrsonYoccaStradlingStaff recommends continuing the contract with •delinquencies has effectively collected Rauth& CalrsonYoccaStradli
ng•
Fiscal Impact CFD Foreclosures 8 Will result in the reserve fund being below the requirement–Reportable event to the bondholders–Fund to make the bond paymentApproximately $360,000 was
drawn from the CFD Reserve –Primarily three large undeveloped properties –Accumulated Gray’s Crossing delinquencies–September 1, 2015 Gray’s Crossing bond payment due•There is no direct
fiscal impact on this matter•
Recommendation CFD Foreclosures 9 with Stradling Yocca Carlson & RauthAuthorize the continuation of the contract for legal services •Districtdelinquent parcels in Gray's Crossing Community
Facilities counsel to proceed with the foreclosure process on all 19 authorizing staff and special -Adopt Resolution 2015•
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