HomeMy WebLinkAbout17, CFD Foreclosures
Action Item # 17 September 5, 2012 Community Facilities Districtsin the Consideration of Foreclosures
CFD Foreclosures 2 was retained to collect delinquent assessmentsIn 2011 the law firm, Burke, Williams & Sorensen (BWS) •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–Roos-Community Facilities Districts (CFD’s) aka Mello•
New Information CFD Foreclosures 3 that payment will be made in full this month18 parcels are owned by one developer from Texas and has indicated ––3 Old Greenwood–31 additional delinquencies
from the 2011/2012 tax year•6 in Gray’s Crossing–2 in Old Greenwood–Begin litigation on remaining 8 parcels to perfect foreclosure––3 Large vacant parcels–Auctioned 4 Gray’s Crossing
parcels, but failed to receive bids–Today 12 assessments from prior years remain unpaid–October 2011 there were 20 delinquent assessments–BWS has been successful in collecting some
delinquencies•
Old Greenwood CFD Foreclosures 4
Gray’s CFD Foreclosures 5 Crossing
New Information CFD Foreclosures 6 proceed on 28 new delinquenciesmustBoard –Gray’s Crossing•proceed on 3 new delinquenciesmayBoard –Old Greenwood•delinquenciesproceed with foreclosure
on all other mayBoard •assessmentsOn all parcels if delinquency exceeds 5% of all –On parcels with delinquent assessments more than $7,500–proceed with foreclosuremustBoard •Conditions:(cont)
New Information CFD Foreclosures 7 auction 4 parcels-Re–28 in Gray’s Crossing–3 in Old Greenwood–Collect 31 new delinquencies–District’s bond counsel and recommended by Willdan–& Rauth
(SYCR)Hire new foreclosure attorney, Stradling, Yocca, Carlson •6 in Gray’s Crossing–2 in Old Greenwood–prior yearsExtend BWS contract to collect 8 delinquencies from •Next Steps:(cont)
Fiscal Impact CFD Foreclosures 8 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 9 form agreed to by the District's counselfor legal services with Stradling Yocca Carlson & Rauth in a Authorize the Board President to enter into a fee
agreement •form agreed to by the District's counsellegal services with Burke, Williams, & Sorensen, LLP, in a Authorize the Board President to extend the agreement for •Crossing Community
Facilities Districtsdelinquent parcels in both Old Greenwood and Gray's counsel to proceed with the foreclosure process on all XX authorizing staff and special -Adopt Resolution 2012•