MEETING DATE:
OCTOBER 28, 2014
SUBJECT:
Title
RESOLUTION NO. 2014-7994 - AUTHORIZATION TO FORECLOSE ON DELINQUENT PROPERTY OWNERS
Body
Recommendation
Recommendation
ADOPT a resolution authorizing foreclosure on property owners that are delinquent in the payment of Community Facilities District (CFD) special taxes.
Body
Board or Commission Action
Not applicable.
Relevant Council Strategic Theme
Good Governance
Relevant Department Goal
Not applicable.
Introduction
Property owners in the City's CFD 88-1 (Paloma/Santa Fe Hills), CFD 91-01 (Twin Oaks Valley Ranch), CFD 99-01 (San Elijo Hills), and CFD 2002-01 (University Commons) are taxed annually via the County property tax bill for their share of the debt service on bonds that their respective CFD has issued. The City has covenanted to the bondholders of these CFDs that judicial foreclosure proceedings will be initiated against property owners that are delinquent in the payment of their CFD special tax if certain requirements are met. For FY 2013-14 there are thirteen such property owners that have not paid their County property tax bill and have therefore not paid their corresponding CFD special tax.
Attached is a resolution that, when approved and adopted by the City Council, will authorize the City Manager to 1) have the delinquent CFD special taxes removed from the County property tax roll and relieve the County Treasurer/Tax Collector of further duty to collect on said delinquencies as they relate to all CFDs presently in existence that have outstanding bonded indebtedness; and 2) order foreclosure action to foreclose on the properties with delinquent FY 2013-14 CFD special taxes.
Discussion
Update on FY 2008-09 Delinquencies: Currently, all delinquencies have been cured except for one. The remaining property owner is in bankruptcy, thus delaying the city's ability to collect. To date, no foreclosures have been necessary.
Update on FY 2009-10 Delinquencies:...
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