HomeMy WebLinkAbout16 Old Greenwood Grays Crossing Foreclosure update Agenda Item # 16
TRUCKEE DONNE
Public Utility District
WORKSHOP
To: Board of Directors
From: Robert Mescher
Date: September 07, 2011
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 2010/11 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, the property owners of each CFD have been assessed to pay the principal
and interest on the bonds.
The Board retained Sherman & Feller to collect delinquent assessments from 2009/10
and earlier.
3. NEW INFORMATION
Sherman & Feller has been very successful in their collection efforts. Of the 114
delinquent parcels from last year, of which 85 were owned by East West Partners,
only five delinquent parcels remain unpaid from 2009/10 and earlier. A writ of sale
has been received on four of those five parcels. Two parcels are scheduled for auction
this month and two auctions need to be scheduled by the Nevada County Sheriff's
Office.
The second installment of the 2010/11 assessments was due on April 10, 2011.
Since that time, the CFD administrators, Willdan Financial Services, has sent
reminders, demand and pre-foreclosure letters to the owners and lien holders of the
delinquent parcels. As of September 1, 2011 there were 15 additional delinquencies.
Unfortunately, Sherman & Feller is closing their office later this year. The District will
need to select another attorney to process the fifth delinquent parcel and any
remaining 2010/11 delinquencies. Several law firms specializing in foreclosures have
been asked to submit proposals. The law firm selection will be on the Board Agenda
next month.
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.
`W -1-2
Robert Mescher Michael D. Holley
Acting Administrative Services Manager General Manager