HomeMy WebLinkAbout7, CFD ForeclosuresAction Item # 7
Consideration of
Foreclosures in the
Community Facilities Districts
September 4, 2013
Background / History
• Community Facilities Districts (CFDs or Mello -Roos)
— CFDs were formed to sell bonds to pay for infrastructure
— Old Greenwood 2003
— Gray's Crossing 2004 and 2005
— Parcel owners within the CFDs are annually assessed to pay
bond principal and interest
— TDPUD administers CFD assessments and debt service
• Since 2010, Board has annually authorized foreclosures on
all parcels with delinquent assessments
• In 2012, Stradling Yocca Carlson & Rauth were retained to
collect delinquent assessments
2
Background / History
• In 2012, there were five delinquent parcels in Old Greenwood
— 5 single -residential lots
• In 2012, two developers owned the majority of delinquent
parcels in Gray's Crossing
— 84 owned by Gray's Station LLC
— 81 single -residential lots sold to LDK and paid delinquent assessments
— 2 large multi -residential parcels sold to LDK; no intent to pay future and
delinquent assessments; Sheriff's sale unsuccessful
— 1 large multi -residential parcel; no intent to pay future and delinquent
assessments; Sheriff's sale unsuccessful
— 22 owned by UDC, a developer from Texas
— 22 single -residential lots; paid all delinquent assessments
3
New Information
• Three delinquencies in Old Greenwood
— Two prior -year delinquencies
— One single -residential lot, new Writ of Sale; Sheriff's sale pending
— One single -residential lot; collection efforts continue;
foreclosure anticipated
— One new delinquency
— One single -residential lot; collection efforts continue
0
New Information
• Thirteen delinquencies in Gray's Crossing
— Nine prior -year delinquencies
— Three large multi -family parcels owned by LDK and Gray's Station;
no intent to pay future and delinquent assessments;
Sheriff's sale unsuccessful
— Three single -residential lots; new Writs of Sale; Sheriff's sale pending
— Three singe -residential lots; collection efforts continue;
foreclosure anticipated
— Four new delinquencies
— Four singe -residential lots; collection efforts continue
5
New Information
CFD bond covenant compliance
• Board must proceed with foreclosure
— On parcels with delinquent assessments more than $7,500
— On all parcels if delinquency exceeds 5% of all
assessments
• Board may proceed with foreclosure on all other
delinquencies
• Old Greenwood
— Board may proceed on 1 new delinquencies
• Gray's Crossing
— Board must proceed on 4 new delinquencies
a
New Information
• District may continue the contract with Stradling Yocca
Carlson & Rauth to process foreclosures
• Old Greenwood refinancing
— Adverse change in market conditions
— Postponed
— Continue to monitor
7
Fiscal Impact
• There is no direct fiscal impact to the TDPUD
• Payment of the CFD collection fees and legal fees is the
responsibility of the property owners in the CFDs
Recommendation
• Adopt Resolution 2013-20 authorizing staff and special
counsel to proceed with the foreclosure process on all
delinquent parcels in both Old Greenwood and Gray's
Crossing Community Facilities Districts
• Authorize the continuation of the contract for legal services
with Stradling Yocca Carlson & Rauth
I
Gray's Crossing + FD
AP N
Owner
19-770-02
Gray's Station LLC
19-770-13
Frank. Seelig
19-780-03
Douglas Sumaraga
19-780-17
John & Margaret Daul
19-800-15
Douglas Sumaraga
19-800-23
Robert Sala
19-870-09
Drake & Nannette Niven
19-870-13
Gerald Quinlan
19-880-08
Paul Buncke
19-900-22
Alan & Beverly Schnobrich
19-910-02
Gary & Cherene Ifland
43-010-05
LD'K GC 81, LLC Gray's Station LLC
43-010-07
LD'K GC 81, LLC Gray's Station LLC
Tota I
R -
AP N Owner
19-740-21 Ezekiel & Susan 'Straw
19-740-0 Abounader Hany Trste
19-750-39 JlamesWogan
11 Tolta I
Amount
201,922.20
3,397.80
3,514.98
3,632.14
3,632.14
3,397.80
4,393.72
2,123.63,
4,393.72
4,833.08,
4,686.64
93,847.30
161,017.90
494,793.05
Amount
1,757.48
1,757.48
3,514.96
7,029.92
Old
Greenwood
12
Grays
Crossing
13