|
DATE: |
December 10, 2024 |
21 |
SUBJECT
Title
CHAPTER VIII AGREEMENT NO. 7092 TO PURCHASE TAX-DEFAULTED LAND BY HOUSEPALS (DISTRICTS: 4 AND 5)
Body
OVERVIEW
When a property owner fails to pay property taxes by the end of the fiscal year, the property becomes tax defaulted. If the property remains tax defaulted for five years, the property then becomes subject to the Treasurer-Tax Collector’s Power to Sell. Statutory requirements are met pursuant to Revenue and Taxation Code § 3691, et seq. prior to the property being offered at sale. Prior to Sale, taxing agencies including the County of San Diego and eligible non-profit organizations are notified of the scheduled sale and provided an opportunity to object to the sale of any properties being offered at public auction to acquire that property for public purpose, in accordance with § 3695 and Chapter VIII of the California Revenue and Taxation Code and County of San Diego Board Policy F-1 Screening of Tax-Deeded Land for Possible Public Use.
Housepals has offered to purchase two (2) parcels for the purpose of acquiring single-family dwellings for rehabilitation and sale or rent to low-income persons, or for other use to serve low-income persons, to acquire vacant land for construction of residential dwellings and subsequent sale or rent to low-income persons, or for other use to serve low-income persons and to conduct charitable activities which includes relief of the poor, the distressed or the underprivileged. In accordance with Chapter VIII of the California Revenue and Taxation Code, we have prepared the proposed agreement for your approval.
RECOMMENDATION(S)
TREASURER-TAX COLLECTOR
1. Adopt the Resolution entitled:
A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO CONCERNING THE PROPOSED CHAPTER VIII AGREEMENT SALE NO. 7092 OF TAX-DEFAULTED PROPERTY TO HOUSEPALS
2. Adopt the Agreement approving the sale by Chapter VIII Agreement No. 7092 of two (2) parcels of land, subject to the Treasurer-Tax Collector’s Power to Sell for Defaulted Taxes to Housepals and authorize execution of said Agreements (two copies) by the Chairperson, attested by the Clerk of the Board of Supervisors.
EQUITY IMPACT STATEMENT
The Treasurer-Tax Collector recognizes the systemic impacts that inequitable policies may create for residents of the County of San Diego. Impacts have historically included outcomes related to racial justice and issues of belonging that are reflected in the programs, services and resources allocated to communities. To more proportionally serve the community, Housepals has agreed to purchase two (2) parcels for the purpose of acquiring single-family dwellings for rehabilitation and sale or rent to low-income persons, or for other use to serve low-income persons, to acquire vacant land for construction of residential dwellings and subsequent sale or rent to low-income persons, or for other use to serve low-income persons and to conduct charitable activities which includes relief of the poor, the distressed, or the underprivileged. It is anticipated that these actions will have a positive impact on all equity-seeking groups to include Black, Indigenous, People of Color (BIPOC), women, people with disabilities, immigrants, youth and the LGBTQ community as the mission of Housepals is to help make affordable and suitable housing for all economic segments, with emphasis on the housing needs of lower-income households and households with special needs.
SUSTAINABILITY IMPACT STATEMENT
The proposed actions to conduct an online public auction, collect unpaid property taxes and return the properties to a revenue generating status are appropriate as they support the County of San Diego’s Strategic Initiative of Sustainability to align the County’s available resources with services to maintain fiscal stability and ensure long-term solvency. The proposed actions to sell property to Housepals for rehabilitation and sale or rent to low-income persons, or for other use to serve low-income persons, align with the County of San Diego’s Sustainability Goal of ensuring the capability to respond and recover to immediate needs for individuals, families, and the region.
FISCAL IMPACT
If approved, proceeds of $128,500.00 from the sale of two (2) parcels to Housepals will be used to redeem the delinquent prior year and current year taxes, costs and fees. Any funds remaining after satisfaction of all taxes, fees and costs of sale will be retained in the delinquent tax sale trust fund for a period of one year following the recordation of the tax deed to the purchaser of the property. During that period, any party of interest in the property at the time of the sale may apply for the proceeds by submitting a claim. Any excess proceeds remaining after processing valid claims will be transferred to the General Fund. There will be no additional change in net General Fund cost and no additional staff years.
BUSINESS IMPACT STATEMENT
N/A
Details
ADVISORY BOARD STATEMENT
N/A
BACKGROUND
Pursuant to the California Revenue and Taxation Code, Division 1, Part 6, Chapter 8, public and non-profit agencies are eligible to purchase tax-defaulted properties which are subject to public auction. Upon Board approval, the Chairperson will execute the attached Chapter VIII Agreement No. 7092 for Housepals to purchase two (2) parcels which is more than five years tax-defaulted and has become subject to the Treasurer-Tax Collector’s Power to Sell for Defaulted Taxes.
This agreement includes two (2) parcels 112-030-36-00 and 501-233-03-00. This acquisition is part of an on-going effort of Housepals to acquire single-family dwellings for rehabilitation and sale or rent to low-income persons.
These parcels are fully described in Exhibit “A”. The sale price includes, at a minimum, the amount to pay taxes and assessments including penalties and fees plus all costs of the sale per § 3793.1 of the California Revenue and Taxation Code.
Existing state law provides power for the Treasurer-Tax Collector to sell properties that are tax-defaulted for five or more years, or, in the case of a nuisance abatement, three or more years pursuant to Revenue and Taxation Code § 3691. For property damaged or destroyed by calamity and /or by a state, county, or federally declared disaster such as the Lilac Fire of December 2017, state law provides that the property not be offered at sale until five years from the date of the state, county or federally declared disaster. The Treasurer-Tax Collector makes a review of the parcels subject to and scheduled for sale to identify and remove properties affected by such declared disasters from the list of parcels to be offered at sale.
Prior to sale, the Treasurer-Tax Collector’s office thoroughly researches tax-defaulted property to identify parties of interest. Rigorous efforts are made to contact the owners and other parties of interest to provide them notice of sale, the effect of the sale on their interest in the property, and their right of redemption. All contact with parties of interest is purposed on facilitating the redemption (payment in full) of defaulted taxes.
Owners of record are sent notices each year starting with the first year of default. These notices consist of a defaulted tax bill in July and the regular tax bill in October, which contains the statement, “IN DEFAULT ON JUN 30 YYYY, PRIOR YRS TAXES DELINQUENT.” Defaulted tax statements for parcels, which are delinquent for five years or more, are mailed together with a notice advising the taxpayer of the tax sale status and fees that have or will attach to the parcel prior to mailing. All owners mailing addresses are researched prior to mailings for a more current address. Notices of the Treasurer-Tax Collector’s Power to Sell for Defaulted Taxes are recorded, in accordance with § 3691.1, § 3691.2 and § 3691.4 of the Revenue and Taxation Code, and legal advertisement of the property’s Tax-Default and Impending Power of the Treasurer-Tax Collector’s Power to Sell is made for each of the properties itemized on the attached Exhibit. Prior to sale, taxing agencies are notified of the scheduled sale and provided an opportunity to object to the sale of individual property scheduled for public auction and acquire that property for public purpose, in accordance with § 3695 of the Revenue and Taxation Code. Additionally, prior to any tax sale, notice of the impending sale is mailed out to all known parties of interest, individually, and is also published in local newspapers. It is only after all such means have been exhausted by the Treasurer-Tax Collector staff that property is scheduled for auction.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s proposed action to approve the sale of tax-defaulted property supports the Sustainability of Economy, Climate and Environment, Health Equity, and Community Quality of Life, initiatives in the County of San Diego’s 2024-2029 Strategic Plan by collecting validly assessed tax revenue which is turned over to the General Fund and made available to fund County programs; and for the preservation of the natural environment providing parks, recreation and quality of life for people in the community.
Respectfully submitted,
DAN MCALLISTER
Treasurer-Tax Collector
ATTACHMENT(S)
Attachment A: A Resolution of the Board of Supervisors of the County of San Diego Concerning the Proposed Chapter VIII Agreement Sale No. 7092 of Tax-Defaulted Property to Housepals
Attachment B: Agreement for Sale and Purchase of Tax-Defaulted Real Property and Covenants, Conditions and Restrictions Agreement No. 7092 - Housepals
Attachment C: Exhibit “A” for Chapter VIII Agreement No. 7092, Housepals