Description Amount Land Acquisition $ 14,300,000 Home Construction 44,638,887 Fees/Permits 994,074 Site Improvements 19,125,748
Selling & Marketing 5,835,427
Interest 3,758,688
Warranty 1,030,032
Financial Other (Property Taxes) 776,040
Total Costs spent as of April 15, 2016 $ 90,458,895
Remaining costs to complete $ 763,327
Source: Lennar Homes.
History of Property Tax Payments; Loan Defaults; Litigation Lennar Homes has represented to the District as follows:
1. Except as described in this Official Statement, there is no material indebtedness of Lennar Homes that is secured by an interest in the Property (defined below). Lennar Homes is not in default on any obligation to repay borrowed money, which default is reasonably likely to materially and adversely affect Lennar Homes’ ability to complete the development of the Property as described in this Official Statement or to pay the Special Taxes due at any time with respect to the portion of the Property then owned by the Developer (to the extent the responsibility of the Developer) prior to delinquency.
2. Except as set forth in this Official Statement, no action, suit, proceeding, inquiry or investigation at law or in equity, before or by any court, regulatory agency, public board or body is pending against Lennar Homes (with proper service of process to Lennar Homes having been accomplished) or to the Actual Knowledge of Lennar Homes (as defined below) is threatened in writing against Lennar Homes which
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if successful, is reasonably likely to materially and adversely affect Lennar Homes’ ability to complete the development of the Property as described in this Official Statement or to pay the Special Tax or ad valorem tax obligations due at any time with respect to the portion of the Property then owned by the Developer (to the extent the responsibility of the Developer) prior to delinquency.
3. Lennar Homes has been developing or has been involved in the development of numerous projects over an extended period of time. It is likely that Lennar Homes has been delinquent at one time or another in the payment of ad valorem property taxes, special assessments or special taxes. To the Actual Knowledge of Lennar Homes, Lennar Homes is not delinquent to any material extent in the payment of ad valorem property taxes, special assessments or special taxes on the Property. To the Actual Knowledge of Lennar Homes, during the last five years, Lennar Homes (during its period of ownership) has not been delinquent to any material extent in the payment of any ad valorem property tax, special assessment or special tax on property in California owned by Lennar Homes (during the period of its ownership) included within the boundaries of a community facilities district or an assessment district that (a) would have caused a draw on a reserve fund relating to such assessment district or community facilities district financing or (b) resulted in a foreclosure action being filed against the delinquent Lennar Homes.
4. To the Actual Knowledge of Lennar Homes, there are no Affiliates of Lennar Homes the financial viability of which could have a materially adverse impact on the ability of Lennar Homes to complete its development within the District as described in this Official Statement or to pay the Special Tax or ad valorem tax obligations due at any time with respect to the portion of the Property then owned by the Developer (to the extent the responsibility of the Developer) prior to delinquency.
As used in the above representations of Lennar Homes, the following defined terms and phrases have the following meanings:
“Affiliate” means, with respect to the Developer, any other Person (i) who directly, or indirectly through one or more intermediaries, controlling, controlled by or under common control with the Developer, and (ii) for whom information, including financial information or operating data, concerning such Person referenced in clause (i) is material to an evaluation of the District and investment decision regarding the Bonds (i.e., information relevant to the Developer’s development plans with respect to its Property and the payment of its Special Taxes, or such Person’s assets or funds that would materially affect the Developer’s ability to develop its Property as described in the Preliminary Official Statement or to pay its Special Taxes due at any time with respect to the portion of the Property then owned by the Developer (to the extent the responsibility of the Developer) prior to delinquency).
“Person” means an individual, a corporation, a partnership, a limited liability company, an association, a joint stock company, a trust, any unincorporated organization or a government or political subdivision thereof. For purposes hereof, the term “control” (including the terms “controlling,” “controlled by” or “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.
“Actual Knowledge of Lennar Homes” means the knowledge that the individual signing on behalf of the Developer currently has as of the date of the representation or has obtained through (i) interviews with such current officers and responsible employees of the Developer and its Affiliates as the undersigned has determined are reasonably likely, in the ordinary course of their respective duties, to have knowledge of the matters set forth in the representation, and/or (ii) review of documents that were reasonably available to the undersigned and which the undersigned has reasonably deemed necessary for the undersigned to obtain knowledge of the matters set forth in the representation. The undersigned has not conducted any extraordinary inspection or inquiry other than such inspections or inquiries as are prudent and customary in connection with the ordinary course of the Developer’s current business and operations. The individual signing the
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representation has not contacted any individuals who are no longer employed by or associated with the Developer or its Affiliates.
“Property” means that portion of the taxable property within the District owned by Lennar Homes as of the date hereof (or as of the date otherwise indicated).