What is the Community Enhancement Fee in Playa Vista?

Many of the people who originally purchased homes in Playa Vista from the developer didn't realize, in the huge amount of paperwork that they signed, that they had agreed to pay what is called the Community Enhancement Fee or CEF.  

Pursuant to the Community Enhancement Fee Agreement, which encumbers each lot/unit within Playa Vista Maintenance Association, the Community Enhancement Fee (‘CEF’) is to be paid to PVCS in connection with each property transfer. The fee is three-quarters of a percent (.0075%) times the Purchase Price (or total consideration) for each transaction resulting in a resale transfer. If your property is sold a statement of account must be requested from Merit Property Management by your escrow officer.  

The CEF is paid at the close of escrow and it is determined through the purchase process who will be responsible for the Fee, the buyer or the Seller.  In a hot market a smart Listing agent will negotiate for the Buyer to pay for the CEF and will include it in the purchase contract.  In a slower market it can be harder to get this fee paid for by the Buyer and the Seller will need to cover the fee.  If the CEF is not discussed in the purchase agreement it will be the responsibility of the Seller to pay and it will be taken out of the Sellers proceeds by Escrow and paid directly to PVCS.  If there are no proceeds from the sale, the Seller will have to come in with the funds in order to close escrow.  Escrow should not close without this fee being paid.  If for some reason it does PVCS can legally come after both the buyer and the seller for payment of the fee and can use all legal means available to them to collect the debt.  Much better to get this settled in escrow.  I've seen this come back to haunt homeowners who have used agents that were unaware of this requirement.
 
In case you were wondering what the Community Enhancement Fee pays for I have included a summary of the benefits:

In addition to funding cultural and social programs in Playa Vista (movies at moonlight, concerts in the park, bagels and brew, the fall festival, holiday party, etc.), these fees pay for Playa Vista’s community intranet (PlayaLink), operation of the Playa Vista Shuttle Bus and other programs that focus on enhancing the quality of life in Playa Vista through community events.


Some residents of Playa Vista think that all of the wonderful events in Playa Vista are either paid for by Playa Capital (the Master Developer) or by their Master Association Fees. As you now know, unfortunately they are not!   Hopefully, now that you know how these wonderful events and services are paid for you will go and get your monies worth!  If you can't hang out to chat at Bagels and Brew or the Holiday Party make sure you stop by and get some food to-go!  If you can't make a concert or a movie.... invite your friends and family to enjoy it in your stead.  One way or another you will have paid for all of the events and services in Playa Vista.  Have fun and use them!  Hope to see you on the Beach Shuttle this summer......