Ventura County Grand Jury
• 2018-2019
Transparency in the Sale of Tax-Defaulted Property to Nonprofits
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and Recommendations 12 findings
F01
Defaulted-tax sales are scheduled to occur once each year; however, due to redemption of properties, they are held infrequently. An auction was held February 13, 2019. Prior to that, the last auction was held in 2015. At the discretion of the Treasurer-Tax Collector, if too few properties remain to warrant the expense of an auction, the sale may be cancelled and those remaining properties will be carried over until the next sale. (Ref-03)
No recommendations for this finding
F02
In the last 10 years, the only properties sold through the Chapter 8 procedure were two vacant parcels of land purchased by the City of Thousand Oaks.
No recommendations for this finding
F03
As of the date of this report, two nonprofits have initiated Chapter 8 purchases of two additional parcels. Completion of these transactions is pending.
No recommendations for this finding
F04
Nonprofits intending to participate in a negotiated-sale Chapter 8 process must be incorporated in the State for at least one of the following purposes: • Acquiring single-family dwellings for rehabilitation and sale to low- income persons • Acquiring vacant land for construction of low-income housing • Acquiring vacant land to be dedicated to public use (Ref-01)
No recommendations for this finding
F05
A nonprofit’s proposal to commence purchase of a tax-defaulted property through Chapter 8 must include the following documents: • An application to purchase a tax-defaulted property (Ref-04, Att-01) • A letter declaring an objection to a parcel that is scheduled for sale at an upcoming public auction. An objection letter is only required if the parcel in question is currently scheduled for a Chapter 7 sale. The letter 2 Transparency in the Sale of Tax-Defaulted Property to Nonprofits must provide compelling evidence that the tax-defaulted property is needed or may be needed for public use. (Ref-05, Att-02) • Articles of Incorporation in the State • A document listing each parcel under consideration and its intended use (Ref-04)
No recommendations for this finding
F06
If a nonprofit organization submits a proposal to the Treasurer-Tax Collector to purchase a property currently in tax default, and the property has not yet been approved for any other type of tax sale, i.e., has not yet been scheduled for public auction or sealed-bid sale, the Chapter 8 process may move forward. (Ref-01)
No recommendations for this finding
F07
If a nonprofit submits a proposal to purchase a property that has been approved for public auction or sealed-bid sale, the proposal must be filed with the Treasurer-Tax Collector’s office before the date of the first published or posted notice of sale at auction or sealed bid. (Ref-01)
No recommendations for this finding
F08
The published or posted notice of sale must be at least 21 days prior to the sale. However, the Treasurer-Tax Collector may post notice of a sale at any earlier time. (Ref-01)
No recommendations for this finding
F09
If the nonprofit’s application for purchase is filed with the Treasurer-Tax Collector’s office after the date of the first published or posted notice of sale, the application is not valid. In that case, the nonprofit may not purchase the property under the Chapter 8 process. The nonprofit may bid on the property at a public auction. (Ref-06)
No recommendations for this finding
F10
The State provides guidelines to the County regarding the process for selling tax-defaulted properties. (Ref-01, Ref-02, Ref-06)
No recommendations for this finding
F11
The Treasurer-Tax Collector’s website provides information for people who want to purchase property at the County’s public auction. The County provides no information regarding the Chapter 8 process, including deadlines.(Ref-03)
Related Recommendations (1)
R01
The Grand Jury recommends that the Treasurer-Tax Collector’s office update its website, providing easy-to-follow information and instructions regarding the Chapter 8 procedure. This information should include, but not be limited to, complete information outlining all pertinent timelines and the properties available. The list of tax-defaulted properties should be updated in a regularly scheduled manner.(C-01, C-02) Response Response Required From: Ventura County Treasurer-Tax Collector (C-01, C-02) (R-01) References Ref-01. State of California “A Guide to Preparing the Chapter 8 Agreement Sale Package” https://sco.ca.gov/Files-ARD-Tax-Info/Tax-Collector-Ref- Man/Chapter8SaleGuide_2017.pdf Accessed April 3, 2019 Ref-02. State of California “County Tax Sale Procedural Manual, Volume II: Chapter 8 Tax Sales https://www.sco.ca.gov/Files-ARD-Tax-Info/Tax-Collector-Ref- Man/ctspm_v2_2016.pdf Accessed April 3, 2019 Ref-03. Office of the Ventura County Treasurer-Tax Collector https://www.ventura.org/ttc/current-auction/ Accessed April 3, 2019 Ref-04. California State Controller’s Office Form 8-16 https://www.sco.ca.gov/Files-ARD-Tax-Info/Tax-Collector-Ref- Man/sco8-16.pdf Accessed April 3, 2019 Ref-05. Revenue and Taxation Division 1. Property Taxation, Part 6. Tax Sales [3695.5] http://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?secti onNum=3695.5.&lawCode=RTC Accessed April 3, 2019 Ref-06. State of California “County Tax Sale Procedural Manual Volume I: Chapter 7 Tax Sales” https://www.sco.ca.gov/Files-ARD-Tax-Info/Tax-Collector-Ref- Man/ctspm_v1_2016.pdf Accessed April 3, 2019 4 Transparency in the Sale of Tax-Defaulted Property to Nonprofits Attachments Att-01. Sample Nonprofit Application Form Att-02. Sample Nonprofit Objection Letter Transparency in the Sale of Tax-Defaulted Property to Nonprofits 5 Glossary TERM DEFINITION Chapter 7 Sale of tax-defaulted property through the public-auction process Chapter 8 Sale of tax-defaulted property to a taxing agency or to a nonprofit through an agreement-sale process County County of Ventura Grand Jury 2018-2019 Ventura County Grand Jury Redemption The process whereby a tax-defaulted property is pulled from a scheduled sale because the owner has paid delinquent taxes and penalties. State State of California Tax-Defaulted Property Property on which taxes have been delinquent for five years for residential property and farmland and three years for nonresidential commercial property. Treasurer-Tax Collector Ventura County Treasurer-Tax Collector 6 Transparency in the Sale of Tax-Defaulted Property to Nonprofits Attachment 01 Sample Nonprofit Application Form Transparency in the Sale of Tax-Defaulted Property to Nonprofits 7 8 Transparency in the Sale of Tax-Defaulted Property to Nonprofits Attachment 02 Sample Nonprofit Objection Letter Transparency in the Sale of Tax-Defaulted Property to Nonprofits 9 10 Transparency in the Sale of Tax-Defaulted Property to Nonprofits
F12
If a nonprofit wants to participate in the Chapter 8 process, it needs to call the Treasurer-Tax Collector’s office for a list of properties in tax-defaulted status and the associated deadlines. (Ref-03) Conclusions C-01. The Grand Jury concluded that there is insufficient guidance to nonprofits seeking to purchase a tax-defaulted property through the Chapter 8 process. (FA-01, FA-02, FA-03, FA-04, FA-05, FA-06, FA-07, FA-08, FA-09) C-02. The Grand Jury concluded that an excessive burden is placed on the nonprofit to determine the procedures and all applicable and necessary Chapter 8 deadlines. (FA-10, FA-11, FA-12) Transparency in the Sale of Tax-Defaulted Property to Nonprofits 3 Recommendation R-01. The Grand Jury recommends that the Treasurer-Tax Collector’s office update its website, providing easy-to-follow information and instructions regarding the Chapter 8 procedure. This information should include, but not be limited to, complete information outlining all pertinent timelines and the properties available. The list of tax-defaulted properties should be updated in a regularly scheduled manner.(C-01, C-02) Response Response Required From: Ventura County Treasurer-Tax Collector (C-01, C-02) (R-01) References Ref-01. State of California “A Guide to Preparing the Chapter 8 Agreement Sale Package” https://sco.ca.gov/Files-ARD-Tax-Info/Tax-Collector-Ref- Man/Chapter8SaleGuide_2017.pdf Accessed April 3, 2019 Ref-02. State of California “County Tax Sale Procedural Manual, Volume II: Chapter 8 Tax Sales https://www.sco.ca.gov/Files-ARD-Tax-Info/Tax-Collector-Ref- Man/ctspm_v2_2016.pdf Accessed April 3, 2019 Ref-03. Office of the Ventura County Treasurer-Tax Collector https://www.ventura.org/ttc/current-auction/ Accessed April 3, 2019 Ref-04. California State Controller’s Office Form 8-16 https://www.sco.ca.gov/Files-ARD-Tax-Info/Tax-Collector-Ref- Man/sco8-16.pdf Accessed April 3, 2019 Ref-05. Revenue and Taxation Division 1. Property Taxation, Part 6. Tax Sales [3695.5] http://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?secti onNum=3695.5.&lawCode=RTC Accessed April 3, 2019 Ref-06. State of California “County Tax Sale Procedural Manual Volume I: Chapter 7 Tax Sales” https://www.sco.ca.gov/Files-ARD-Tax-Info/Tax-Collector-Ref- Man/ctspm_v1_2016.pdf Accessed April 3, 2019 4 Transparency in the Sale of Tax-Defaulted Property to Nonprofits Attachments Att-01. Sample Nonprofit Application Form Att-02. Sample Nonprofit Objection Letter Transparency in the Sale of Tax-Defaulted Property to Nonprofits 5 Glossary TERM DEFINITION Chapter 7 Sale of tax-defaulted property through the public-auction process Chapter 8 Sale of tax-defaulted property to a taxing agency or to a nonprofit through an
Related Recommendations (1)
R01
The Grand Jury recommends that the Treasurer-Tax Collector’s office update its website, providing easy-to-follow information and instructions regarding the Chapter 8 procedure. This information should include, but not be limited to, complete information outlining all pertinent timelines and the properties available. The list of tax-defaulted properties should be updated in a regularly scheduled manner.(C-01, C-02) Response Response Required From: Ventura County Treasurer-Tax Collector (C-01, C-02) (R-01) References Ref-01. State of California “A Guide to Preparing the Chapter 8 Agreement Sale Package” https://sco.ca.gov/Files-ARD-Tax-Info/Tax-Collector-Ref- Man/Chapter8SaleGuide_2017.pdf Accessed April 3, 2019 Ref-02. State of California “County Tax Sale Procedural Manual, Volume II: Chapter 8 Tax Sales https://www.sco.ca.gov/Files-ARD-Tax-Info/Tax-Collector-Ref- Man/ctspm_v2_2016.pdf Accessed April 3, 2019 Ref-03. Office of the Ventura County Treasurer-Tax Collector https://www.ventura.org/ttc/current-auction/ Accessed April 3, 2019 Ref-04. California State Controller’s Office Form 8-16 https://www.sco.ca.gov/Files-ARD-Tax-Info/Tax-Collector-Ref- Man/sco8-16.pdf Accessed April 3, 2019 Ref-05. Revenue and Taxation Division 1. Property Taxation, Part 6. Tax Sales [3695.5] http://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?secti onNum=3695.5.&lawCode=RTC Accessed April 3, 2019 Ref-06. State of California “County Tax Sale Procedural Manual Volume I: Chapter 7 Tax Sales” https://www.sco.ca.gov/Files-ARD-Tax-Info/Tax-Collector-Ref- Man/ctspm_v1_2016.pdf Accessed April 3, 2019 4 Transparency in the Sale of Tax-Defaulted Property to Nonprofits Attachments Att-01. Sample Nonprofit Application Form Att-02. Sample Nonprofit Objection Letter Transparency in the Sale of Tax-Defaulted Property to Nonprofits 5 Glossary TERM DEFINITION Chapter 7 Sale of tax-defaulted property through the public-auction process Chapter 8 Sale of tax-defaulted property to a taxing agency or to a nonprofit through an agreement-sale process County County of Ventura Grand Jury 2018-2019 Ventura County Grand Jury Redemption The process whereby a tax-defaulted property is pulled from a scheduled sale because the owner has paid delinquent taxes and penalties. State State of California Tax-Defaulted Property Property on which taxes have been delinquent for five years for residential property and farmland and three years for nonresidential commercial property. Treasurer-Tax Collector Ventura County Treasurer-Tax Collector 6 Transparency in the Sale of Tax-Defaulted Property to Nonprofits Attachment 01 Sample Nonprofit Application Form Transparency in the Sale of Tax-Defaulted Property to Nonprofits 7 8 Transparency in the Sale of Tax-Defaulted Property to Nonprofits Attachment 02 Sample Nonprofit Objection Letter Transparency in the Sale of Tax-Defaulted Property to Nonprofits 9 10 Transparency in the Sale of Tax-Defaulted Property to Nonprofits
Conclusions 1
-
CL1 Page 5C-01. The Grand Jury concluded that there is insufficient guidance to nonprofits seeking to purchase a tax-defaulted property through the Chapter 8 process. (FA-01, FA-02, FA-03, FA-04, FA-05, FA-06, FA-07, FA-08, FA-09) C-02. The Grand Jury concluded that an excessive burden is placed on the nonprofit to determine the procedures and all applicable and necessary Chapter 8 deadlines. (FA-10, FA-11, FA-12) Transparency in the Sale of Tax-Defaulted Property to Nonprofits 3
Agency Responses 1
Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.