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City Council Regular
ACTIONS PURSUANT TO BOND COVENANTS
Adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, CALIFORNIA, ORDERING THE FILING OF FORECLOSURE ACTIONS ON DELINQUENT ASSESSMENT DISTRICT ASSESSMENTS AND DELINQUENT COMMUNITY FACILITIES DISTRICT SPECIAL TAXES PURSUANT TO BOND COVENANTS
The City of Chino Hills administers the Assessment Districts and Community Facilities Districts within the City limits. These administration responsibilities include the levy and collection of assessments and special taxes which are levied annually to pay debt service in the various districts. The debt was incurred through the issuance of bonds; the proceeds of which have been used to construct much of the City’s infrastructure.
Annually, pursuant to covenants contained in the bond documents for the various districts, the City is charged with the responsibility of reviewing the status of payments made in the various districts. If certain delinquency thresholds are reached, the City is charged with the task of commencing foreclosure actions to collect the delinquencies. The costs of pursuing such delinquencies are collected from the district funds or the delinquent property owner, depending upon the district.
As of November 7, 2018, delinquencies exist as follows:
Assessor’s Parcel Number
Existing Fiscal Year Delinquencies
FY 2013-14, 2014-15, 2015-16 & 2017-18
FY 2013-14, 2014-15, 2015-16, 2016-17 & 2017-18
The City Attorney’s office will send letters to the delinquent property owners advising them of the City’s obligations in this regard and suggesting that the delinquencies be cured to avoid the necessity of commencing foreclosure proceedings. At this time, City staff is unable to determine whether we will have to foreclose on any property owners this fiscal year, but this Resolution is needed in the event that such action is necessary.
It is now appropriate, pursuant to the bond documents, to commence foreclosure proceedings to collect such delinquencies. Pursuant to Streets and Highways Code section 8834 and Government Code section 53356.4, the City Council must satisfy the procedural requirement of ordering the foreclosure actions. The attached Resolution, if adopted, will authorize commencement of such actions as required by the bond documents and the covenants binding the City.
ENVIRONMENTAL (CEQA) REVIEW:
This proposed action is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.), because it does not involve any commitment to a specific project which could result in a potentially significant physical impact on the environment; and, constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this action does not constitute a "project" that requires environmental review (see specifically 14 CCR § 15378(b)(4-5)).
No direct financial impact will result from the adoption of this Resolution. Any costs associated with the actions are recoverable from the delinquent properties.
REVIEWED BY OTHERS:
This item has been reviewed by the City Attorney.
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