On this website in May, we asked La Costa Valley homeowners how much they would be willing to pay to simply buy the vacant land from the school district. (see the original article and poll results) Note: this is not a legally binding vote, does not represent all homeowners, and may not even be an option for us. Just the same, like every straw poll, it gives a better view of how things might turn out.
Based on the latest results, only a fraction of LCV homeowners have the will, interest or financial foresight to make any substantial committment.
Half said they would not be willing to pay any assessment. Just over a quarter (27%) said they’d pay up to $1,000 in the next 12 months. 12% said they’d pay up to $5,000. And 4% said they’d pay up to $10,000, 4% up to $25,000 and 4% up to $100,000. Taken all together, this amounts to about $6-$7 million dollars. Certainly a tidy sum, but only a fraction of the property’s value, even in these market conditions.
If you’re a strong supporter of FONC and want La Costa Valley Homeowners to take this property into their own hands, then you need to get involved and convince your neighbors to pony up a bit more.
If you’re a private property developer (many live in La Costa Valley), this straw poll shows will need to find additional financing beyond what the homeowners will come up with.
If you’re one of the 50% of homeowners that doesn’t want to pay your share, then talk to your neighbors and the HOA board. If there is an assessment, it is likely that every homeowner will need to pay their share.
However, think about it. What would you do with an extra $5,000 and $800 per year?
If, for some reason, the SDUHSD followed the original terms of the Mello-Roos Bond, yet sold the vacant property in La Costa Valley, they’d be obligated to pay the bond back. (Okay, you lawyers and finance types that know how to read bond-speak can sift through this and confirm or deny)
Those of you who may not like the Mello-Roos assessment may decide to do your civil protest thing and not pay it. Watch out! The CFD can force you into foreclosure a lot faster than typical property taxes. The CFD trustees don’t even have much choice about it.
Fortunately, La Costa Valley homeowners have been better than some other neighboring communities at paying their $800 per year.
Here are part of the minutes from a June 26, 2006 SDUHSD meeting.
While the number of permits issued and the incremental special tax revenue have slowed, delinquencies have continued to rise to levels not seen since the early 2000’s.
Historical Delinquency Rates
The aggregate 2006/07 delinquency rate is 1.7%. While no CFD is currently required to foreclose on homeowners due to delinquency, of concern are two CFDs which are experiencing higher than anticipated delinquency rates. Encinitas Ranch (CFD 94-3) and the communities of CFD 95-2 (Encinitas area) have delinquency rates of 2.3% and 3.5% respectively. Should the delinquency rate exceed 5% in these CFDs, the CFD will be required to take foreclosure action regardless of the amount or time of delinquency.
Staff has contacted MuniFinancial, and reminder/demand letters have been sent to the delinquent homeowners to address this concern.
