Order distribution of excess proceeds following tax sale of the property at 3070 County Road 88B, Dunnigan, CA (APN 051-182-015-000). (No general fund impact) (Haynes)

Order the distribution of excess proceeds from the tax sale of the property at 3070 County Road 88B, Dunnigan, CA (APN 051-182-015-000) as follows: (a) 50% to Humboldt County Department of Child Support Services, and (b) 50% to the Yolo County Public Guardian on behalf of Bernice Shabazz.

In Support of All Goals (Internal Departments Only)

Whenever the Tax Collector sells a property at a tax sale due to delinquent taxes, any excess proceeds remaining following payment of taxes, fees, and interests “shall be distributed on order of the board of supervisors” [California Revenue and Taxation Code (RTC) § 4675(e)(1)]. The excess proceeds are distributed in their order of priority, first to lien holders of record, and then to any owners with title of record who filed valid claims within one year of recording of the tax deed (ibid.).

On December 7, 2020, the Department of Financial Services ("DFS"), in its role as the County Tax Collector, auctioned at a tax sale the property at 3070 County Road 88B in Dunnigan, APN 051-182-015-000 ("Property") for $165,461.10.  The excess proceeds amounted to $144,187.63.  A tax deed was recorded December 15, 2020.

DFS received three claims for the excess proceeds by the December 15, 2021, deadline (copies of the claims are on file with the Clerk of the Board):

1. Global Discoveries, Inc. for $100% of the excess proceeds, as the assignee of Patrick Spears, owner of record.
2. The Yolo County Public Guardian for 50% of the excess proceeds, as conservator for Bernice Shabazz, owner of record.
3. Humboldt County Department of Child Support Services ("HCDCSS") for 100% of the excess proceeds, based on over $350,000 that Mr. Spears owes in back child support payments and interest arising from a September 26, 2006, child support judgment.

Co-owners are entitled to a share of excess proceeds that corresponds to their ownership share [First Corp., Inc. v. Cty. of Santa Clara, 146 Cal. App. 3d 841 (1983)].  In this case, the property was co-owned by Mr. Spears and Ms. Shabazz based on a deed recorded on January 3, 2008.  (Note that the Assessor re-numbered the parcel number for the Property after the deed was recorded from APN 051-182-151-000 to APN 051-182-015-000.)  HCDCSS has demonstrated that it was a qualified lien holder of real property owned by Mr. Spears through the recording of an abstract of support judgment (copy on file with the Clerk of the Board) [see California Code of Civil Procedure §§ 697.320(a), 708.750 & 708.780(a); and Family Code § 291(a)].  HCDCSS therefore has priority of Mr. Spears’s share of the excess proceeds.  

Accordingly, DFS recommends that the Board order distribution of the excess proceeds as follows: (a) 50% to HCDCSS, and (b) 50% to the Yolo County Public Guardian as the conservator for Bernice Shabazz.  DFS provided notice of this item to the three interested parties who filed claims (Att. A).  Any interested party who objects to the proposed distribution, either in writing or oral comment prior to the Board’s vote, has 90 days to file an action to review the Board’s decision [see RTC § 4675(e)].  Failure to raise an objection to the Board will be considered a waiver of the objection and failure to exhaust administrative remedies.

County Counsel

Not applicable.