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HomeMy WebLinkAbout13 Forclosure Update Agenda Item # 13 Public Utility District WORKSHOP To: Board of Directors From: Mary Chapman Date: November 17, 2010 Subject: Old Greenwood and Gray's Crossing Community Facilities Districts - Foreclosure Update 1. WHY THIS MATTER IS BEFORE THE BOARD This workshop item is intended to update the Board of Directors on the status of the delinquent 2009/10 assessments in Old Greenwood and Gray's Crossing Community Facilities Districts. 2. HISTORY In 2003, the Board formed a Community Facilities District (CFD) for the Old Greenwood development. In 2004, the Board formed a CFD for the Gray's Crossing development and authorized the sale of additional bonds in 2005. Both CFDs were formed for the purpose of selling bonds to pay for portions of the infrastructure in both the Old Greenwood and Gray's Crossing developments. Each year since their formation, the property owners of each development have been assessed such that there would be sufficient funds to pay the principal and interest on the bonds as they came due. Earlier this year, the Board hired Sherman & Feller to pursue foreclosure on delinquent assessments from 2008/09 and earlier. Sherman & Feller were very successful in their efforts. Only one delinquent parcel was not paid which resulted in Sherman & Feller filing a judicial foreclosure law suit against the property. The second installment of the 2009/10 assessments was due on April 10, 2010. Since that time, Willdan Financial Services has sent reminder, demand and pre- foreclosure letters to the owners and lien holders of the delinquent parcels. On August 4, 2010 the Board referred the 2009/10 delinquent parcels to Sherman & Feller to proceed with the foreclosure process. At that time there were 4 delinquent assessments in Old Greenwood for a total of $11,592.84 and 111 delinquent parcels in Gray's Crossing for a total of $516,742.12. 3. NEW INFORMATION Since August 4th, foreclosure letters were sent to the delinquent parcels by Sherman & Feller. The final deadline for making payments was October 31, 2010. At this time there is only one parcel still delinquent in Old Greenwood in the amount of $1,656.12 and 10 parcels in Gray's Crossing in the amount of $105,983.63. None of the amounts due include penalties, interest and fees. Attachment 1 is a list of the delinquent parcels. 4. FISCAL IMPACT There is no direct fiscal impact to the TDPUD with this workshop item. All charges incurred related to the judicial foreclosure process are the responsibility of the property owners. 5. RECOMMENDATION Review this report and provide comment. XvItiLAq Mary Chapman Mi ael D. Holley Administrative Services Manager General Manager ATTACHMENT 1 OLD GREENWOOD-DELINQUENCY REPORT AS OF 10/20/10 Period Assessment APN Owner Delinquent Amount 19-740-33 SUMARAGA 04/10 $1,656.12 Total Past Due $1,656.12 GRAY'S CROSSING-DELINQUENCY REPORT AS OF 10/20/10 Period Assessment APN Owner Delinquent Amount 19-770-02-000 GRAY'S STATION LLC 09/10 $33,919.66 19-780-03-000 SUMARAGA 09/10 3,312.24' 19-790-23-000 GRAY'S STATION LLC 09/10 3,422.64 19-790-25-000 TAHOE BUILDER LLC 09/10 3,312.24 19-800-07-000 BROOKS 09/10 1,600.91 19-800-15-000 SUMARAGA 09/10 3,422.64 19-860-11-000 PORTER 09/10 2,001.14 19-890-02-000 DELUCCHI 07/10 12,178.94 43-010-05-000 GRAY'S STATION LLC 09/10 15,764.82 43-010-07-000 GRAY'S STATION LLC 09/10 27,048.40 Total Past Due $105,983.63