LEHCs are a special type of stock cooperative that are created to provide affordable housing. There are typically maximum annual increases permitted on the cost and resale value of the stock or membership interest of resident owners, and the property must be held for public or charitable purposes and must revert to a public or charitable entity or charitable corporation when the LEHC is dissolved. See Civil Code section 817 and Business and Professions Code section 11003.4.
Litigation
The act or process of bringing a legal action in court. It entails filing a lawsuit, defending against a lawsuit, conducting discovery, filing motions, a trial before a judge and/or jury, any post-trial motions and appeals.
Lump Sum (Fixed Price) Contracts
When the contract price is stated as a lump sum, the contract is referred to as a fixed price contract. Under a fixed price contract, the contractor bears all of the risks associated with the actual cost of completing the project. If the actual construction costs exceed the fixed price, the contractor is responsible for such excess costs and is obligated to complete the work for the fixed price. On the other hand, if the actual construction costs are less than anticipated, the contractor is entitled to the entire fixed price amount. The cost savings accrue to the contractor, increasing the contractor’s profit on the project.