What is Lennar Charitable Housing Foundation?
Lennar Charitalbe Housing Foundation(“LCHF”) is a non-profit organization whose mission is to end homelessness by investing in shelter and supportive services benefiting vulnerable families and individuals.
Is LCHF controlled by Lennar?
LCHF is an independently directed, fully qualified, non-profit, tax-exempt 501(c)(3) public benefit corporation under state and federal law. While “Lennar” is in the name, the LCHF Board is comprised of professionals with business, law, government, finance and non-profit experience.
Is LCHF’s program a tax shelter for Lennar?
No. LCHF is neither a tax shelter nor does it provide a tax break for Lennar.
HOMEOWNER
FREQUENTLY ASKED QUESTIONS
What is the Charitable Housing Agreement?
The Charitable Housing Agreement Imposing Endowment Fee on Transfer and Lien (“CHA” or“Agreement”) is a legally recorded contract initiated by the builder and LCHF that records a transfer fee (the “Fee”) agreement and lien on real property (“Participating Homesite”). This contract affords LCHF the right to collect the Fee — 0.05% of the gross sales price of a home — on the original sale (as defined in the CHA) and all subsequent sales of a Participating Homesite. Should you require a copy of the Agreement, please contact your Escrow Company and/or Title Company. If you are unable to obtain a copy of the CHA from your Escrow Company and/or Title Company, please email us at lchf-info@lennar.com (reference community name, tract & lot in the subject line).
What is the endowment fee and how is it calculated?
The Fee is equal to 0.05% of the gross purchae price of the Participating Homesite at the time of closeing. If, for example, a Participating Homesite is purchased for $250,000.00 the Fee equates to $125.00.
Is the Fee required mitigation for developmental impacts?
No. The Fee does not mitigate developmental impacts for affordable housing, environment or other exactions typically required by local governments prior to project approval.
How do I find out if an obligation to pay has been met?
Review your closing report – reference sections “Lennar Charitable Housing Foundation”, Miscellaneous” or “Other Fees” usually located under the section “Additional Settlements” – or contact your Escrow Company and/or Title Company.
What do I do if I have already paid the fee?
Please send us a copy of the closing report indicating payment was made and a proof of payment -payment sub or a copy of the wire transfer confirmation from the bank. If your Escrow Company or Title Company paid on your behalf, please have them send us said documents.
I was not made aware of the Fee by the seller, Escrow Company or Title Company, nor did I sign anything acknowledging that I was aware of the fee, am I free of obligation?
No. Though each owner of a Participating Homesite shall (a) notify all prospective buyers of said fee, (b) provide a copy of the CHA to all prospective buyers, and (c) notify all prospective buyers that they are obligated to comply with the CHA, the buyer is NOT free of obligation. Though Escrow Companies and Title Companies have a professional obligation to disclose encumbrances (including the Fee), ignorance to an encumbrance resulting from said parties failing to disclose said encumbrances, or for any other reason, does not free the obligated party or parties of burden.
