After extensive public comment, board delays Diablo Grande tax‑default auction

Stanislaus County supervisors voted unanimously to postpone action on a proposed tax‑default auction that included Diablo Grande parcels, following more than an hour of public testimony from residents, water‑district officials and community leaders who said the liabilities stem from prior developers and that ongoing negotiations merit delay.

Donna Riley, Stanislaus County Treasurer‑Tax Collector, outlined the Chapter 7 tax‑default auction process under the Revenue and Taxation Code and said the county’s revised auction schedule would include a February date unless the board acted; she presented prior and proposed auction totals, saying the May 2025 list had included 56 parcels totaling about $4.2 million and the February list would include 173 parcels totaling about $5.2 million. Riley noted legal timelines for notice and the state controller’s manual that govern the sale process.

Multiple witnesses representing Diablo Grande — including Mark Kovich, board president of the Western Hills Water District, and a succession of residents and elected local advocates — asked supervisors to pause or remove Diablo Grande parcels from the sale. They argued unpaid obligations stemmed from World International and Angels Crossing, developers that allegedly defaulted on tax obligations and left residents bearing the consequences. Mark Kovich told the board the district and residents are working through litigation and negotiations and asked the board to ‘‘exercise your authority under California law to pause or prevent this action.’’

Western Hills Water District representatives explained the district foreclosed as custodian trustee and now controls 91 parcels; they said foreclosure changed tax status for those parcels and contended much of the $5.2 million figure is attributable to prior developer obligations rather than current residents. The district urged the board to allow time for negotiations with Kern County Water Agency, the City of Patterson and prospective developers; residents warned a sale would fragment ownership and deter any developer from completing infrastructure projects needed to lower water rates.

Supervisors questioned legal constraints and the county counsel cautioned that removing parcels individually is complex and could require detailed findings that parcels lack county value. After debate, a motion to continue consideration and return with additional information at the Board’s Dec. 9 meeting passed unanimously. The Treasurer‑Tax Collector said the office previously postponed the sale and that substantial administrative steps (publication, notification and research) must occur to reschedule.

The action halts immediate auction steps for the affected parcels, while staff, the treasurer’s office and supervisors agreed to follow up with additional briefings and legal analysis. No parcel waivers or tax forgiveness were granted.