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HomeMy WebLinkAbout9, CFD Foreclosures Action Item # August 20, 2014 and Delinquency Updates Community Facilities Districts;Foreclosures in the Consideration of 9 CFD Foreclosures 2 retained to collect delinquent assessmentsIn 2012, Stradling Yocca Carlson & Rauth (SYCR) were •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-Ten single–sale unsuccessfulSheriff’s –StationLDK and Gray’s Owned by –family parcels-Three large multi–In 2013, there were 13 delinquent parcels in Gray’s Crossing•family residential parcels-All single–GreenwoodIn 2013, there were three delinquent parcels in Old • New Information CFD Foreclosures 4 Collection efforts continue–family residential parcels-Three single–Three new delinquencies–Foreclosure anticipated–Collection efforts continue–residential lot-One single–Scheduling another Sheriff sale–11/06/13 unsuccessful Sheriff sale–family residential parcel-One single–-Two prior–Five delinquencies in Old Greenwood• New Information CFD Foreclosures 5 Collection efforts continue–residential lots-Fourteen single–four parcels owned by The Village at Gray’s Crossing -Twenty–eight new delinquencies-Thirty–Sheriff’s sales anticipated soon–residential lots-Three singe–Sheriff’s sale scheduled 9/10/14–family residential parcels-Two single–Sheriff’s sale unsuccessful–owned by LDK and Gray’s Station–family parcels -Three large multi–-Eight prior–six delinquencies in Gray’s Crossing-Forty• New Information CFD Foreclosures 6 proceed on 38 new delinquenciesmustBoard –Gray’s Crossing•than $7,500on previous delinquency that now has delinquency total more proceed mustproceed on 3 new delinquencies but mayBoard –Old Greenwood•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 •CFD bond covenant compliance TP4 Slide 6 TP4 I CHANGED THE OG RECOMENDATION TO A MUST FOR THE PARCEL THAT HAS >7,500 DELIQ Tricia Phillips, 8/14/2014 New Information CFD Foreclosures 7 process foreclosuresStaff recommends continuing the contract with SYCR to •SYCR proficiently collects delinquencies • Fiscal Impact CFD Foreclosures 8 Reserve level will be below requirements–bondholdersReportable event to the –Fund to make the bond paymentReserve CFD Approximately $280,000 will need to be drawn from the –restricted, undeveloped properties -Primarily three large income–Accumulated Gray’s Crossing delinquencies–September 1, 2014 Gray’s Crossing bond payment due•responsibility of the property owners in the CFDsPayment of the CFD collection fees and legal fees is the •There is no direct fiscal impact to the TDPUD• Recommendation CFD Foreclosures 9 with Stradling Yocca Carlson & RauthAuthorize the continuation of the contract for legal services •Crossing Community Facilities Districtsdelinquent parcels in both Old Greenwood and Gray's counsel to proceed with the foreclosure process on all 19 authorizing staff and special -Adopt Resolution 2014•