Brisbane City Council
May 21, 2026

2 recorded on October 16, 2018, Instrument Number 2018-79966, Official Records of San Mateo County.

F. AUTHORITY and BRIDGE SENIOR have now terminated the GROUND LEASE and by reason of such termination, there is no continued need for the Declaration of Restrictions recorded on February 15, 2000 to remain of record and, with the consent of the AUTHORITY, BRIDGE SENIOR now wishes to terminate of record the 2000 Declaration of Restrictions.

NOW, THEREFORE, BRIDGE SENIOR declares:

1. The 2000 Declaration of Restrictions referenced in Recital D above is hereby terminated.

2. This Termination of Declaration of Restrictions shall be recorded in the official records of San Mateo County.

BRIDGE SENIOR HOUSING, INC.

The Brisbane Housing Authority, as owner of the LAND, hereby consents to the Termination of the 2000 Declaration of Restrictions,
Jeremy Dennis, Executive Director
Approved as to form:

Michael Roush, Legal Counsel

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Recording requested by:

Brisbane Housing Authority
When recorded, mail to:

Brisbane Housing Authority
25 Park Place
Brisbane, CA 94005
Attn: Board Secretary
_________________________________________Space above this line for Recorder’s use only Exempt from recording fees: Government Code, section 6103 The undersigned Grantor declares:

Documentary Tax: County $ 0; City $0

QUITCLAIM DEED
APN: 007-221-180
FOR A VALUABLE CONSIDERATION, receipt of which is acknowledged, Bridge Senior Housing, a California nonprofit public benefit corporation, (“Grantor”) does hereby remise, release, and forever quitclaim to the Brisbane Housing Authority, a public agency (“Grantee”) any and all right, title, or interest that Grantor has in the real property described in Exhibit A, attached hereto and incorporated herein by reference, and any and all right, title, or interest that Grantor has in the Improvements on such property.

Dated: BRIDGE SENIOR HOUSING

Brisbane Housing Authority accepts and consents to this Quitclaim Deed.

Dated: BRISBANE HOUSING AUTHORITY
_________________________
Jeremy Dennis, Executive Director
Brisbane Housing Authority
ATTACHMENT 4

Approved as to form:

Michael Roush, Legal Counsel
Brisbane Housing Authority
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2905 S. El Camino Real, San Mateo, CA 94403 | (650) 204-5640 | heartofsmc.org February 24, 2026
Julia Ayres, Principal Planner
50 Park Place
Brisbane, CA 94005
Re: Visitacion Garden Senior Apartment, 8 Visitacion Avenue/3 Inyo Street, Brisbane, CA (the "Project")
Dear Ms. Ayres,
This letter sets forth our revised proposal to enter into a new ground lease and management agreement for the Project. The purpose of this letter is to summarize the material terms of our mutual understanding regarding the ground lease and management of the Project by the Housing Endowment and Regional Trust of San Mateo County (“HEART” or “Buyer”) and its assignee, HEART-SV. The landowner is referred to as the “City.” For clarity, references to “acquisition” below refer to Buyer’s acquisition of the Project’s leasehold interest and improvements pursuant to the ground lease.

1. Debt Assumption HEART is willing to assume the existing City and County of San Mateo loans (“Debt”) via new loan agreements on the condition that an appraisal demonstrates that the leasehold interest and improvements have a value equal to or greater than the Debt. The current total Debt is $4,289,188. HEART engaged Bowery Valuation to appraise the Project and the valuation, $3,290,000, is less than the Debt. As a result, HEART requests a restructuring of the Debt through new loan agreements in the following amounts: $3,062,564 for the City loan and $227,436 for the County of San Mateo loan.

2. Acquisition Price The restructured Debt totaling $3,290,000 shall constitute the “Acquisition Price” of the Project leasehold interest and improvements.

3. Due Diligence Period HEART conducted a full due diligence review, including an appraisal, a capital needs assessment, a Phase I environmental report, three reroofing quotes, and two exterior painting quotes.

4. Assignment The City acknowledges that, immediately prior to closing, Buyer will assign the Project acquisition to HEART-SV, an affiliate of HEART, which will take title.

5. Financing Based on the information provided in the Request for Proposals and by the current Project operator, HEART believes that existing rental revenue is sufficient to cover general operating expenses. However, outstanding repairs and future capital needs identified in the capital ATTACHMENT 5

2905 S. El Camino Real, San Mateo, CA 94403 | (650) 204-5640 | heartofsmc.org needs assessment exceed projected revenues. To address this gap, HEART proposes a combination of a new City loan and a HEART loan, each in the amount of $390,250.

6. Rent Restriction HEART accepts and proposes to maintain the existing rent restrictions, while implementing subsidy “stacking” to ensure long-term project sustainability. HEART proposes one modification: replacing two 40% AMI units with one 30% AMI unit and one 50% AMI unit. This will allow rents to align with the State Department of Housing and Community Development (HCD) published rent levels.

To maintain viability, HEART intends to rent four units to incomequalified households at 80% AMI. However, Health & Safety Code §§50053 and 50052.5 requires that units restricted at 80% AMI be rented at 60% AMI rent levels. To serve 80% AMI households at appropriate rents, these units must instead be deed restricted at 120% AMI. Notwithstanding the 120% deed restriction level, HEART will continue to income-qualify and target tenants for these four units at 80% AMI. A table summarizing the proposed restrictions, target occupancy, and subsidy stacking is shown below.

Proposed Deed Restrictions
City Deed Restrictions County Deed
Restrictions
AMI Income Target Rent Stacked
30% 3 3 3
40% 0 0
50% 1 1
60% 6 6 1
80% 0 4 1
120% 4 0
Total 14 14 5

7. Current Tenants HEART will honor all existing leases and designated AMI rent levels for tenants currently residing at the Project.

8. Affordability Because the City’s original funding for the Project came from the former Redevelopment Agency, HEART understands that H&SC dictates the method for calculating rents for units regulated by the City deed restriction. HEART and the City further acknowledge that if City and County subsidies are stacked, five units will be subject to the lesser of HUD HOME Income Limits or H&SC-based limits.

9. Property Management HEART believes that the Project’s prior financial challenges stemmed in part from reliance on part-time, on-site management and maintenance. HEART proposes utilizing a capable, responsive off-site ATTACHMENT 5

2905 S. El Camino Real, San Mateo, CA 94403 | (650) 204-5640 | heartofsmc.org property management team to ensure both quality service for tenants and proper maintenance. Should this approach fall short, HEART is willing to adjust its strategy.

10. Repairs and Upgrades HEART proposes a $434,000 construction budget to address identified repairs needed over the next five years. In addition, HEART will capitalize a $100,000 reserve fund and contribute 10% of gross income annually for the first four years, beginning with approximately $21,000 in the first year. To fund the ongoing repair needs, HEART will increase the replacement reserve deposit to 15% of gross income annually in year five and again to 20% of gross income annually in year sixteen. In year twenty-four, HEART will reduce the replacement reserve deposit to 15% of gross income annually. The combination of the construction budget, capitalized reserves, and the annual deposits to the reserve is sufficient to address all repairs identified in the capital needs assessment.

11. Non-Binding Effect This proposal reflects the mutual understanding of the parties with respect to the general terms and conditions of the proposed transaction.

Except for provisions expressly intended to be binding (if any), this proposal is non-binding and subject to the negotiation and execution of mutually acceptable definitive agreements.

Thank you for considering this proposal. We look forward to further discussions and to working together to preserve and strengthen affordable housing in the City of Brisbane.

Sincerely,
Armando F. Sanchez
Executive Director.

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Statement of Intent
HEART is proposing a new 55-year ground lease to operate and manage the Project.

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HEART’s Proposed Approach
HEART proposes to assume the existing Debt on the condition that an appraisal demonstrates the leasehold interest and improvements have a value equal to or greater than the Debt. HEART will conduct an appraisal as part of its due diligence review and if the valuation is less than the Debt, HEART requests to restructure the Debt.

The provided 2024 Capital Needs Assessment by Integrated Property Analysis identifies $796,200 in capital needs. Completing the repairs based on the Assessment’s schedule, the future cost of these repairs with inflation will be approximately $980,460. However, the existing Project revenue does not support this level of repairs. To address this deficit, HEART proposes to establish a $363,000 construction budget to immediately finance the first 3 years of capital needs, fund a $90,000 capital reserve, and contribute 10% of gross income annually to the capital reserve fund. The immediate repairs, future repair schedule and total cost are subject to change based on the property needs assessment HEART will conduct once the City notifies HEART that the City Subcommittee is recommending HEART for the Project.

To pay for all costs associated with assuming the Project, including pay for the immediate repairs, the capital reserve, and the operating reserve, HEART is proposing a combination of a new $350,000 City loan and a 15-year $262,350 HEART loan.

SUPERSEDED. Please refer to 2/24/2026 Letter of Interest for updated capital improvement and Authority and HEART loan amounts requested.

ATTACHMENT 5

HEART MULTIFAMILY LOANS
HEART's role is to provide predeveldopment and/or permanent financing to multifamily projects for new construuction, preservation and predevelopment.

Development Developer Borrower Units
Afford.

Units Type Status
HEART Loan
Amount Note Date Repayment Type Total Devt Costs
Stambaugh HEART-SV HEART-SV 8 8 Preservation Completed $1,900,000 7/29/24 Residual Receipts $3,760,327 Stambaugh HEART-SV HEART-SV 8 8 Preservation Completed $450,000 2/29/24 Repaid Ridge at Ralston CRP
CRP Affordable
Communities
65 64 New Construction Predevelopment $1,000,000 7/1/24 Balloon, Interest annually $61,272,000
Ridge at Ralston CRP
CRP Affordable
Communities
65 64 New Construction Predevelopment $3,000,000 1/1/24 Balloon, Interest annually
Colibri MidPen Housing MP 965 Weeks
Street Ass.
136 135 New Construction Construnction $3,230,000 10/1/23 Residual Receipts $140,737,067 493 Eastmoor Ave CORE
Eastmoor
Multifamily 72 71 New Construction Predevelopment $3,000,000 9/18/23 Repaid $71,774,000 Kiku MidPen Housing Donwtown SM
Partners
225 223 New Construction Construnction $3,800,000 12/17/21 Residual Receipts $169,000,000 Nugent Square EDEN/

EPACANDO
Nugent Square
Partners
32 31 Rehabilitation Completed $850,000 9/13/21 Repaid $850,000 353 Main Street
Family Apartments ROEM
353 Main Street
Apartments
125 124 New Construction Completed $3,500,000 7/29/19 Repaid $87,894,313 PSD Oddstad Blvd. Pacifica School
District
Pacifica School
District
70 45 New Construction Predevelopment $900,000 7/1/18 Repaid $24,000,000 2821 El Camino Real
Unincorporated
(North Fair Oaks)
Palo Alto Housing 2821 ECR LLC 67 66 New Construction Completed $3,500,000 10/2/17 Repaid $33,899,243 Bay Meadows
Affordable
San Mateo
BRIDGE Winfield Hill, Inc. 68 67 New Construction Completed $500,000 2/21/17 Repaid $46,958,277 Jefferson Av.

Homeownership
Redwood City
Habitat for
Humanity
Habitat for
Humanity Greater
San Francisco
20 20 New Construction Completed $500,000 2/24/15 Repayment: $12,500 semi-annual $10,262,000
10 Year Totals: 961 926 $26,130,000 $650,407,227
Table 1: Experience Last 10 Years
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Project Units Affordable Purchase Price Year Purchased Years in Service Role Current Status 232 Miller Avenue, SSF 2 2 $700,000 2006 7
Acquisition, property
management
Demolished, New Parking
Structure
217-219 Grand Avenue, SSF 1 1 $1,500,000 2010 3
Acquisition, rehab,
property management
Demolished, New Affordable
Housing Development
310-314 Miller Avenue, SSF 12 12 $4,215,672 2001-2008 15 Acquisition, rehab,
property management
Demolished, New Affordable
Housing Development
714-718 Linden Ave, SSF 3 3 $755,118 2005 20
Acquisition, rehab,
property management Affordable 3-plex
339-341 Commecial Ave, SSF 4 4 $932,705 2007 18
Acquisition, rehab,
property management Affordable 4-plex
Table 2: Armando Sanchez Preservation Experience
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HEART Experience
HEART is a Joint Powers Authority founded in 2003 in collaboration with the County of San Mateo and its cities to address the region’s need for affordable housing for low- and moderate-income families. HEART operates a capital trust fund to provide short- and medium-term loans for the acquisition, predevelopment, and rehabilitation of affordable multifamily projects. Table 1 provides an overview of HEART’s loan portfolio over the last 10 years.

In 2024, HEART launched its Preservation Program and established an affiliate organization, HEART-SV, to acquire Naturally Occurring Affordable Housing (NOAH) properties and provide rent stability for existing tenants. In July 2024, HEART completed its first acquisition of an 8-unit property in Redwood City, propelling HEART into property acquisition and operations.

Armando Sanchez, Executive Director of HEART brings over 15 years of experience as a consultant with South San Francisco where he led the purchase and operations of 5 properties detailed in Table 2.

Key Principle
Armando Sanchez
[email protected]
(650) 204-5641
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HEART
Organization Chart
Board of Directors
Executive Director
Business &
Operations
Audrey
Washington

0.5 FTE
Bookkeper
Mid-Income
Housing Program
Developer Loan &
NOAH
Preservation
Boris Vatkin

0.7 FTE
Mac Hart

1.0 FTE
Audrey
Washington

0.5 FTE
First Time
Homebuyer / ADU
Programs
Boris Vatkin

0.2 FTE
Mobile Home
Loan Program
Boris Vatkin

0.1 FTE
Alex Waggoner

0.5 FTE
City Services
Tim Davis

1.0 FTE
Alex Waggoner

0.5 FTE
Leslie Valencia

1.0 FTE
Legal Counsel
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HEART-SV
Organization Chart
Board of
Directors
Executive
Director
A. Sanchez
Middle Income
Housing Program
RBC Capital
Markets
Manatt Housing
Solutions
NOAH
Preservation
Progam
Property
Manager
Legal Cousel HEART Staffing
Indicates consultants and outside services
ATTACHMENT 5

Joint Exercise of Powers Agreement

HEART-SV
This Agreement is entered into the ___ day of ___________ 2023, pursuant to the provisions of the Joint Exercise of Powers Act (Title 1, Division 7, Article 1, §6500 et seq. of the California Government Code), is by and between the Housing Endowment and Trust of San Mateo County (“HEART”) and those Counties, Cities and Towns, School Districts, College Districts and any other Public Agency who become signatories to this Agreement, and relates to the joint exercise of powers among the signatories hereto, each of which, including HEART, is hereafter individually referred to as “Member Agency” and collectively referred to “Member Agencies”.

RECITALS
A. The Member Agencies have determined that there is an undersupply of affordable housing for “low income,” “median income” and “moderate income” residents of the State of California and wish to provide for the public good and promote the health, safety, education, and/or welfare of the citizens of the State by making dwelling units available to such residents within their geographic boundaries.

B. Each Member Agency has the individual power to plan, acquire, construct, manage, regulate, operate, finance and control the development, construction and operation of housing programs generated within its jurisdictional boundaries, as well as to create and issue development agreements for such activities.

C. The Member Agencies find it in their mutual economic interest to address housing needs of their residents on a regional level.

D. An adequate supply of housing will provide social and economic benefits to residents and taxpayers of the Member Agencies.
23 May
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E. The Member Agencies desire to act in the public interest to lessen the burden on government by reducing the need for each Member Agency to act individually, and to provide charitable support for housing within their geographic boundaries.

F. California Government Code §6500 et seq. (“Joint Exercise of Powers Act” or “Act”) permits two or more public agencies to create joint powers authorities for the purposes cited herein, and permits the agencies to exercise jointly any power that the public agencies could exercise separately, and further grants certain additional powers to such joint powers authorities.

G. Local land-use decisions remain solely with the Member Agencies. Nothing in this Agreement deprives member agencies of their sovereign powers or transfers those powers to the joint powers authority.

NOW, THEREFORE BE IT RESOLVED that the Member Agencies do hereby establish the entity to be known as HEART-SV, to generate and/or maintain housing, disburse funding, and take other actions that will result in permanent additions to the housing stock within HEART-SV’s jurisdictional boundaries, and do hereby agree as follows:

1. Purpose.

1.1 The purpose of this Agreement is to establish an organization that shall be responsible for the joint acquisition, management, operation, fundraising, planning, adoption, financing, administration, review, monitoring and reporting of certain housing program activities in the region for the benefit of low, median and moderate income residents. By entering this joint powers authority, the Member Agencies earn economic benefits not realized when operating individually. Further, the establishment of this joint powers authority provides for the economic viability and coordination of housing program financing and facilities throughout HEART-SV’s jurisdictional boundaries.

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1.2. HEART-SV shall be an entity which is legally independent from the parties to this Agreement, and shall be responsible for the administration of this Agreement.

1.3 The assets, rights, debts, liabilities, and obligations of HEART-SV shall not constitute assets, rights, debts, liabilities, or obligations of any of the Member Agencies. However, nothing in this Agreement shall prevent any of the Member Agencies from separately contracting for, or assuming responsibility for, specific debts, liabilities, or obligations of HEART-SV, provided that both the Board and the Member Agency approve such contract or assumption.

2. Powers.

2.1 HEART-SV is authorized, but is in no way required, to act in its own name on any or all of the following matters, as each Member Agency could act separately, and as it deems in the best interest of its Members, to the extent permitted by any and all applicable laws, codes, ordinances, resolutions and regulations:
a. Facilitate and assist the Member Agencies and others in the housing sector to acquire, construct, rehabilitate, finance, refinance, operate, regulate and maintain low, median and moderate income and/or affordable housing programs, projects and facilities (“HEART-SV Housing Programs”).
b. Facilitate the planning, study, and recommendation of proper and appropriate HEART-SV Housing Programs, and management practices. Research and study issues related to housing, including without limitation workforce, affordable and special needs housing.
c. Educate the public, its Member Agencies, and other agencies and entities as to HEART-SV Housing Programs.
d. Provide for or enter into agreements to provide for financial, construction, engineering, legal, audit, and any other professional services supporting any of the HEART-SV Housing Programs or related activities.
e. Solicit, apply for, accept, and receive grants, gifts, donations, advances, and contributions.
f. Hire agents and employees, including consultants and legal counsel. g. Sue and be sued in its own name.

ATTACHMENT 5

h. Incur and discharge debts, liabilities, and obligations which may include but shall not be limited to being in the form of secured bonds, revenue bonds or other forms of secured or unsecured debt.
i. Issue bonds or notes and associated covenants, for designated purposes, subject to the provisions and limitations of the California Government Code. j. Acquire or protect any necessary security or leasehold interests involved in loans, bonds, notes, or other financing methods implemented to carry out the purposes of this Agreement.
k. Acquire, hold, lease, improve, construct, rehabilitate, maintain, pledge, assign, mortgage, operate and dispose of real and personal property as may be necessary and appropriate in connection with the creation, construction, financing, development, and maintenance of certain workforce and affordable housing, and the programmatic needs of HEART-SV.
l. Issue and receive loans.
m. Acquire such insurance protection as it deems necessary. n. Adopt, as authorized by California law, resolutions necessary to carry out the purposes of this Agreement
o. Utilize and establish advisory committees or subcommittees whenever necessary. p. Form wholly owned and controlled affiliate entities to accomplish any of its purposes.
p. Adopt bylaws and such other rules and procedures as may be deemed necessary. q. Convey real and/or personal property interests, and/or funds. r. Other acts necessary to carry out the actions identified above.

2.2 HEART-SV shall undertake, facilitate and encourage the acquisition, creation, construction, development, and maintenance of certain workforce, affordable and other public benefit housing, programs, projects and facilities.

3. Term and Termination

3.1 This Agreement shall be effective upon its execution by HEART and at least one Member Agency.

ATTACHMENT 5

3.2 This Agreement shall continue at least until May 22, 2033, and thereafter shall continue until terminated or dissolved pursuant to Section 3.3 of this Agreement. However, in no event shall the Member Agencies vote to terminate or dissolve HEART-SV if its termination or dissolution would conflict with or violate the terms or conditions of any bonds, financial instruments, or related documentation by or on behalf of HEART-SV, including, without limitation, indentures, resolutions, and letter of credit agreements.

3.3. This Agreement may be terminated by consent of all Member Agencies, and upon full and complete liquidation of all liabilities, including, but not limited to any bonds. Upon the date of termination (hereinafter “Termination Date”), payment of any and all obligations and division of any and all assets of HEART-SV shall be conducted subject to the then-applicable requirements of the law, pursuant to the following:
a. In the event of termination of HEART-SV, where there is a successor public agency that will conduct all of the activities of HEART-SV and will assume all of its obligations, any and all HEART-SV assets and liabilities remaining upon termination of HEART-SV shall be transferred to the successor public agency.
b. If there is no successor public agency that would conduct HEART-SV’s activities, all assets and liabilities shall be apportioned to each Member Agency in proportion to the contribution of each Member Agency’s total contribution during the term of this Agreement.

Notwithstanding the above, any real property assets shall be distributed to the Member Agency in which such real asset is located.
c. If there is a successor public agency that would conduct some of HEART-SV’s activities, then the Board shall allocate HEART-SV’s assets and liabilities between the successor public agency and the Member Agencies each in proportion to its total contribution during the term of this Agreement. Notwithstanding the above, any real property assets shall be distributed to the Member Agency in which such real asset was located. d. In the event HEART-SV is terminated under circumstances falling within (b) or (c) above, all decisions of the Board with regard to determinations of amounts to be transferred under the requirements of this Agreement to the Member Agencies or any successor shall be final.

ATTACHMENT 5

f. By unanimous agreement of all then current Member Agencies, said current Member Agencies may dispose of, divide, distribute, or return assets on a basis different from that established in this Section 3, but only in accordance with the terms of any financing related to such assets and if such financing was exempt from state and federal income taxation, only with an opinion of bond counsel that such disposition will not adversely affect such tax exemption.
g. The assets distributed pursuant to this Section 3 to Member Agencies will be used for public purposes and will not inure to the benefit of any private person.

4. Governance

4.1 HEART-SV is governed and administered by a Board of Directors (“Board”) that shall exercise all powers and authority on behalf of HEART-SV. The Board shall consist of no more than 31 voting members (hereinafter “Directors”), as follows:
21 No more than twenty-one (21) voting Public Directors and At Large Directors of the HEART Board of Directors (“HEART Directors”). 10 No more than ten (10) Member Agency representatives or individuals who are not representatives of a Member Agency, appointed by a majority vote of the Directors present at the meeting. These Directors shall be referred to as the “Regional Directors”.
15 The sum of all Directors representing a Public Agency, whether a HEART Director or a Regional Director, shall at all times be at least one more than the number of Directors from a non-public agency.

The number of HEART-SV Directors shall at all times be at least one more than the number of Regional Directors.

Additional ex-officio, non-voting, Affiliate Directors may be established by majority Board action, and such Affiliate Directors shall be referred to as “Affiliates”. Regular attendance by each Director and Affiliate shall be encouraged by the HEART-SV Board and the Member Agencies.

ATTACHMENT 5

4.2. Directors shall hold office as follows:
a. The HEART Directors’ terms shall be the same as their HEART Board terms, and shall be served concurrently with their HEART Board term. If a HEART Director is no longer serving on the HEART Board, they shall immediately be removed from the Board. b. The Regional Directors’ terms shall be three (3) calendar years, running from March of the first year through February of the third year. c. There shall be no limit to the number of terms that a Director may serve.

4.3. Directors shall receive no compensation from HEART-SV for serving on the Board.

HEART-SV may reimburse Directors for reasonable expenses necessarily incurred on the Board’s behalf, with prior approval of the Board.

4.4 The Board shall establish an Executive Committee to carry out any and all functions of the Board that the Board may delegate to said Executive Committee. Executive Committee members shall be Board members, but the exact composition of the Executive Committee shall be as determined by the Board.

4.5 The Board may establish an Advisory Committees to advise the Board or the Executive Committee. Advisory Committee members need not be Board members. The composition and role of an Advisory Committee shall be as determined by the Board.

5. Budgets and Financing.

5.1 The Board annually shall adopt, by a date HEART-SV designates by resolution, an operating budget for HEART-SV setting forth anticipated expenses, financing sources and proposed service levels necessary to carry out the purposes of this Agreement. The budget for HEART-SV shall distinguish between Administrative costs (i.e., the cost of operating HEARTSV) and Program costs (i.e., the financing of the programs funded or sponsored by HEART-SV).

HEART-SV shall establish its fiscal year by resolution. Contributions from private persons or entities and not-for-profit entities, whether or not their interests are represented by any Directors, are acceptable so long as they do not cause a violation of any applicable conflict of interest statutes, rules or regulations.

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5.2 The particular Programs and Program budget, funded, sponsored or operated by HEARTSV, as well as the level of, and mechanisms for, the involvement of HEART-SV and each Member Agency, in such Programs and Program budget, shall be determined and approved by the Board. A Member Agency’s individual contribution, involvement and role in any particular Program or the Program budget shall be as may be mutually agreed between the Member Agency and HEART-SV. By way of example only, said contributions, involvement or role may include: cash contributions, provision of services or staffing, use or transfer of title to real or personal property, pledges, guarantees or whatever other instruments or involvement the Member Agency and HEART-SV may agree to. Contributions of all kinds to the Program budget from private persons or entities and not-for-profit entities, whether or not their interests are represented by any Directors, are encouraged, so long as they do not cause a violation of any applicable conflict of interest statutes, rules or regulations.

6. Financial Management

6.1. HEART-SV may appoint a financial manager to manage, hold, invest and distribute the funds of HEART-SV (“Financial Manager”). The duties of the Financial Manager shall include those responsibilities as deemed necessary or appropriate by the Board. There shall be a strict accountability of all funds and report of all receipts and disbursements.

6.2. The public office or officers or person or persons who may be designated to have charge of, handle, or have access to any property of HEART-SV, shall file an official bond in an amount to be fixed by the Board.

7. Staffing.

7.1. It is understood that HEART-SV will require the support of administrative staff. When deemed necessary, the Board may employ or use a managing agent (“Managing Agent”), to implement the objectives of HEART-SV. The Managing Agent may consist of a separate entity or an executive director. The Board shall have responsibility for all employment decisions regarding said Managing Agent, who shall serve at the pleasure of the Board.

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7.2. The Managing Agent may be delegated authority as deemed necessary or appropriate by the Board.

7.3. The Managing Agent shall be responsible for the day-to-day administration of HEARTSV under the direction of the Board. The Managing Agent shall have the authority to employ or use administrative staff consistent with the goals, needs and approved budget of HEART-SV.

7.4 If there is a Managing Agent that is a separate entity, that Managing Agent shall designate who on its staff shall be the Executive Director of HEART-SV, but the acceptance of such choice shall be subject to the approval of the Board.

8. Meetings

8.1. The Board shall schedule by Resolution at least two (2) regular meetings each Fiscal Year.

8.2. Special meetings of the Board may be called by the Chairperson and otherwise as in accordance with provisions of California Government Code §54956 and/or HEART-SV’s bylaws.

8.3. All meetings of the Board shall be held subject to the provisions of California Government Code §54950 et seq. (the “Brown Act”) and other applicable laws of the State of California.

8.4 All meetings of the Board must be held within the County of San Mateo at a location determined by the Chairperson, except that the Board may hold a special meeting outside the County of San Mateo upon an affirmative vote in accordance with Section 8.8 of this Agreement.

8.5 The Secretary shall cause the taking and keeping of minutes of all Board meetings.

Promptly after each meeting, the Secretary shall cause a copy of the minutes to be forwarded to each Director, either electronically or in paper form.

8.6 A majority of the current and appointed Directors shall constitute a quorum for the transaction of business of the Board, except that Directors constituting less than a quorum may adjourn any meeting.

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8.7 Each Director is entitled to cast one vote on any matter presented to the Board for a vote.

8.8 All decisions and actions shall be by a majority of the total number of Directors, regardless of the number of Directors and/or Affiliate Directors present, unless otherwise provided in this Agreement. For example, with 21 total current Directors, 11 votes are required for a decision or action by the Board; and with 13 total current Directors, 7 votes would be required.

8.9 Meetings of the Board shall be conducted by a Chairperson, or in the Chairperson’s absence by the Vice Chairperson. In the absence of both the Chairperson and the Vice Chairperson, meetings shall be conducted by the HEART Director in attendance who represents the largest HEART Member Agency with Board representation, by population.

9. Bylaws. The Board from time to time may adopt and amend bylaws for the conduct of its affairs, provided that they are consistent with this Agreement and are necessary and appropriate in order to carry out HEART-SV’s purpose.

10. Officers and Employees.

10.1 Every two (2) years, the Board shall elect a Chairperson and a Vice Chairperson from among its members.

10.2 The Board shall appoint a Secretary who may, but need not be, a member of the Board.

10.3 The Board shall select a Treasurer, from one of the Member Agencies or a certified public accountant, who shall be the depository and have custody of all the money and property of HEART-SV from whatever source. The duties of HEART-SV Treasurer shall include those set forth in the Act, including those set forth in Government Code §6505.5. The Treasurer may, if the Board so elects, also serve as the Financial Manager.

10.4 HEART-SV shall designate its legal counsel.

ATTACHMENT 5

11. New Members. New Member Agencies may be added to HEART-SV by a majority vote of the Directors present at the meeting. Membership is effective immediately upon execution of this Agreement by the new Member.

12. Withdrawal. Any Member Agency may withdraw from this Agreement effective as of the end of any fiscal year, provided ninety (90) days prior written notice is provided to the other Member Agencies. The rights and obligations of such withdrawing Member Agency shall terminate as of the last day of the fiscal year. The withdrawal of any Member Agency from this Agreement shall in no way affect the rights and obligations of the remaining parties. If a Member Agency withdraws from this Agreement, such Member Agency shall not be entitled to the return of any funds contributed to HEART-SV nor to the return in cash or in kind of any materials or supplies until termination of this Agreement. If a withdrawing Member Agency has obligations under contracts or commitments, including bonds, that are independent from its obligations to HEART-SV, such withdrawal from HEART-SV shall have no impact on such independent obligations.

13. Amendments. Except as provided in Section 11, as needed to admit a new Member Agency, subject to all legal obligations of HEART-SV, this Agreement may be amended by one or more supplemental agreements executed by all of the Member Agencies of HEART-SV.

14. Filings. The Secretary shall cause to be filed all required notices with the California Secretary of State, in accordance with California Government Codes §6503.5 and §53051.

15. Notices.

15.1. All notices to the Member Agencies shall be deemed to have been given to the Member Agencies when mailed, postage prepaid by United States mail, or when hand delivered to the governing body of each Member Agency during usual business hours at the principal office, or to the person apparently in charge of that office.

15.2 All notices to HEART-SV shall be deemed to have been given to HEART-SV when mailed, postage prepaid by United States mail, or when hand delivered to each of the ATTACHMENT 5

Chairperson, Vice Chairperson, and any Executive Director of HEART-SV during usual business hours at the principal office, or to the person apparently in charge of that office.

16. Assignments; Other Agreements. This Agreement shall be binding upon and shall inure to the benefit of the successors of any Member Agency. No Member Agency may assign any right or obligation hereunder without the written consent of all other Member Agencies.

Participation in HEART-SV is not intended to preclude Member Agencies from entering into similar agreements with other jurisdictions.

17. Severability. If any provision of this Agreement or its application to any person or circumstances is held invalid or illegal by a final judgment of a court of law in the State of California, the remainder of this Agreement and the application of the provision to other persons or circumstances shall not be affected.

18. Headings. All section headings contained in this Agreement are for convenience and reference only. They are not intended to define or limit the scope of any provision of this Agreement.

19. Confirmation of Jurisdictional Authority. By signing this Agreement, the Member Agencies retain all jurisdictional authority granted to them by the State and/or their respective Charters. The powers and/or authority granted to HEART-SV pursuant to this Agreement shall in no way serve to limit or restrict an individual Member Agency’s jurisdictional authority.

ATTACHMENT 5

ATTACHMENT 5

IN WITNESS WHEREOF, the parties hereto by their duly authorized representative, have affixed their signatures on this Agreement, effective as of the date first stated above.

HOUSING ENDOWMENT AND

REGIONAL TRUST OF SAN MATEO
COUNTY
By_________________________________
ATTEST: Executive Director
______________________________
Secretary of the Board

COUNTY OF SAN MATEO
By_________________________________
ATTEST: President of the Board of Supervisors
______________________________
Clerk of the Board
Armando F. Sanchez
5/4/23
Resolution No. 079645
Date: May 23, 2023
ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST

OF SAN MATEO COUNTY
Financial Statements and
Independent Auditors’ Report
June 30, 2023 and 2022
ATTACHMENT 5

ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST

OF SAN MATEO COUNTY
JUNE 30, 2023 and 2022

TABLE OF CONTENTS
Independent Auditors’ Report 1 - 4
Management’s Discussion and Analysis 5 - 10
Basic Financial Statements:

Government-Wide Financial Statements
Statements of Net Positions 13
Statements of Activities 14
Fund Financial Statements
Balance Sheets – governmental fund 17
Statements of Revenues, Expenditures and
Changes in Fund Balance – governmental fund 18
Reconciliation of the Statements of Revenues,
Expenditures and Changes in Fund Balance of
Governmental Fund to the Statements of Activities 18
Notes to the Financial Statements 21 - 30
Required Supplementary Information:

Schedule of Revenues, Expenditures and
Changes in Fund Balance – Budget and Actual
Governmental Fund 33
Notes to the Required Supplementary Information 34
Supplementary Information:

Status of Funds 37
Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ............................................................. 39-41 ATTACHMENT 5

ATTACHMENT 5

INDEPENDENT AUDITOR’S REPORT
To the Board of Directors
of the Housing Endowment and Regional Trust
of San Mateo County
San Mateo, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities and each major fund of the Housing Endowment and Regional Trust of San Mateo County, California (HEART), as of and for the years ended June 30, 2023 and 2022, and the related notes to the financial statements, which collectively comprise HEART’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of HEART, as of June 30, 2023 and 2022, and the respective changes in financial position thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of HEART and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements HEART’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about HEART’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 1 ATTACHMENT 5

To the Board of Directors
of the Housing Endowment and Regional Trust
of San Mateo County
San Mateo, California

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
x Exercise professional judgment and maintain professional skepticism throughout the audit. x Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
x Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of HEART’s internal control. Accordingly, no such opinion is expressed. x Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
x Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about HEART’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
2 ATTACHMENT 5

To the Board of Directors
of the Housing Endowment and Regional Trust
of San Mateo County
San Mateo, California

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information on pages 5-9 and 33-34 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise HEART’s basic financial statements. The status of funds schedule is presented for purposes of additional analysis and is not a required part of the basic financial statements.

The status of funds schedule is the responsibility of management and is derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the status of funds schedule is fairly stated, in all material respects, in relation to the basic financial statements as a whole. 3 ATTACHMENT 5

To the Board of Directors
of the Housing Endowment and Regional Trust
of San Mateo County
San Mateo, California

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 4, 2024 on our consideration of HEART’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering HEART’s internal control over financial reporting and compliance.

Badawi and Associates, CPAs
Berkeley, California
March 4, 2024
4 ATTACHMENT 5

Housing Endowment and Regional Trust of San Mateo County Management’s Discussion and Analysis
As management of the Housing Endowment and Regional Trust of San Mateo County (HEART), we offer our readers of HEART’s financial statements this narrative overview and analysis of its financial activities for the fiscal year ended June 30, 2023. We encourage readers to consider the information presented here in conjunction with the basic financial statements and related notes.

Financial Highlights
x HEART’s total net position as of June 30, 2023 amounted to $17,146,533, an increase of $1,716,882 from the prior year. This was the result of receiving $1.7 million in grant to its Trust Fund to assist in the development of affordable housing.
x Consistent with prior years, HEART’s net position primarily made up of $11.1 million in outstanding interest and loan receivables from affordable housing developers. x Cash and cash equivalents are $10,130,466. This amount is largely comprised of $4,620,000 in borrowed funds from the County of San Mateo Measure-K loan, $5,095,506 in HEART Trust Funds, and $414,960 in restricted funds. $9.1 million in cash and cash equivalents can only be used to develop affordable housing.
x During the fiscal year HEART made two preliminary loans commitments totaling $6 million dollars to support the development of affordable housing, but these funds will not be disbursed until the next fiscal year. During the year, HEART received one loan repayment in the amount of $678,726 from Nugent Square Partners.
x Total operating and program revenue for the year amounted to $2,064,968 comprised of $1.7 million in grants restricted for affordable housing, $236,286 in contributions from member agencies and the balance of $119,082 from loan origination fees, interest received, and donor contributions.

Overview of the Financial Statements
HEART’s basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-Wide Financial Statements
The government-wide financial statements are designed to provide the reader with a broad overview of HEART’s finances, in a manner similar to a private-sector business.

The statements of net positions present information on HEART’s assets and liabilities, with the difference reported as net positions. Over time, increases or decreases in net positions may serve as a useful indicator of whether the financial position of HEART is improving or deteriorating.

The statements of activities report how HEART’s net positions changed during the most recent two fiscal years. Changes in net positions are reported as soon as underlying events occur, regardless of the timing of the related cash flows. Thus, some revenues and expenses reported in this statement may result in cash flows only in future periods. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

The government-wide financial statements can be found on pages 13 and 14 of this report. 5 ATTACHMENT 5

Housing Endowment and Regional Trust of San Mateo County Management’s Discussion and Analysis
Fund Financial Statements
A fund is a group of related accounts that is used to control resources that have been segregated for specific activities or objectives. HEART uses fund accounting to ensure compliance with various legal requirements, such as the annually adopted budget. Accordingly, a budgetary comparison schedule has been included in the supplementary information section of the financial statements to demonstrate compliance with budget.

Fund financial statements report essentially the same information as the government-wide financial statements. However, unlike the government-wide financial statements, fund financial statements focus on near-term inflows and outflows of expendable resources, as well as on balances of expendable resources available at the end of the fiscal year.

As required by accounting principles, the financial transactions of HEART are accounted for in a Special Revenue Fund, a governmental fund, as monies received by it are legally restricted to specific use. Monies allocated and disbursed to HEART can be expended only for purposes authorized under the Agreement.

The fund financial statements can be found on pages 17 through 18 of this report.

Notes to the Financial Statements
The notes to the financial statements on pages 21 through 30 provide additional information that is essential to the full understanding of the data provided in the government-wide and fund financial statements.

Other information
This report also presents certain required supplementary information concerning compliance with HEART’s annual budget. This information, as well as associated notes, immediately follows the basic financial statements and the accompanying notes.
6 ATTACHMENT 5

Housing Endowment and Regional Trust of San Mateo County Management’s Discussion and Analysis
Financial Analysis – Government-Wide Financial Statements Assets
Cash and cash equivalents
Receivables, net:

Interest
Loans
Accounts
Restricted assets:

Temporarily restricted:

Cash and cash equivalents
Total Assets
Liabilities
Accounts payable
Long-term liabilities
San Mateo County Measure-K Loan
Paycheck Protection Program Loan
Total Liabilities
Net Position
Restricted for:

Homebuyer Assistance Loan Program – pledge
account
Unrestricted
Total Net Positions
2023
$ 10,130,466
1,311,665
9,809,489
162,343
414,960
21,828,923
62,390
4,620,000
0 4,620,000
411,960
16,731,573
$ 17,146,533
2022
$ 8,053,608
1,118,907
10,512,573
533
411,932
20,097,553
47,902
4,557,500
62,500
4,667,902
411,932
15,017,719
$ 15,429,651
x HEART’s total assets are $21,828,960, an increase of $1,731,370. This is an increase of 9% compared to the prior year. A $1.7 million grant from the City of East Palo Alto is largely responsible for the net $1.7 million asset increase from the previous year. x Cash and cash equivalents increased from $8 million to approximately $10.1 million. The increase in cash and cash equivalents is largely to the $1.7 million grant from the City of East Palo Alto and the repayment of a $678,726 loan from Nugent Square Partners. x Loans outstanding decrease $703,084 due to the Nugent Square Partners loan repayment and a few other small loan repayments from other borrowers.
x Total liabilities for the current year are $4,682,390. This represents a small increase of $14,488 from the previous year. HEART’s total Measure-K loan from the county stands at $4,620,000. The remaining $62,390 in liabilities includes $57,792 in payroll liabilities and payroll tax payments due and $4,598 in accounts payable to consultants and miscellaneous vendors. 7 ATTACHMENT 5

Housing Endowment and Regional Trust of San Mateo County Management’s Discussion and Analysis
x Net position of governmental activities is $17,146,533, an increase of $1,716,882, or 11% more compared to the previous fiscal year. The increase in net position was due to a $1.7 million grant from the City of East Palo Alto that is slated for a loan to for the development of Colibri Commons, and affordable housing development in the City of East Palo Alto.

Changes in Net Positions
Changes in Net Positions
Revenues:

Program Revenues:

Operating grants and contributions
Member Agencies
Donors
Charges for Services
Total Program Revenues
Expenses:

General management and admin support
Legal services
Interest on long-term debt
Miscellaneous
Total Expenses
Net Program Revenue
General Revenues – Investment Earnings
Change in Net Positions
Net positions – beginning
Net positions – ending
2023
$ 236,286
1,823,882
4,800
2,064,968
671,139
9,773
44,960
135
764,259
1,300,709
416,173
1,716,882
15,429,651
$17,146,533
2022
$ 236,280
4,165,177
23,078
4,424,535
524,837
24,816
44,960
-
594,613
3,829,922
58,889
3,951,311
11,478,240
$ 15,429,651
x Total operating and program revenue during the current period was $2,064,968, lower than the prior year’s amount of $4,424,535. This reflects a decrease in grants received to support the development of affordable housing. Grants received decreased from $4 million to $1.7 million. x Excluding the $1.7 grant from the City of East Palo Alto, operating and program revenue was $364,968. This amount is comprised of $236,286 from Member Agency contributions and $128,682 from other donations and program service fees.
x Total expenses incurred during the current period amounted to $764,259, an increase of $169,682, or 28.5% more, than the previous year. The vast majority (86%) of the increase in expenses is due to the addition of more staff at HEART to meet the increased program work load. 8 ATTACHMENT 5

Housing Endowment and Regional Trust of San Mateo County Management’s Discussion and Analysis
Budgetary Analysis
Total Revenues and Other
Financing Sources
Total Expenditures and Other
Financing Uses
Net Change in Fund Balance
Budgeted Amount
Final
$ 798,848
798,848
$ - x
Actual Amount –
Budgetary Basis
$ 2,279,140
764,259
$ 1,514,259
Variance -Positive
(Negative)
$ 1,658,882
(34,589)
$ 1,514,881
Actual revenues were higher than budgeted by $1,658,882. While HEART’s individual revenue sources fluctuated and differed from the budgeted amounts, the $1.7 million grant awarded to HEART for affordable housing development was responsible for generating the large positive variance. Operating expenses were slightly below the amount budgeted by $34,589. Expenses were lower largely due the lower utilization of outside contract and consulting services.

Beyond FY 2023
In 2024 HEART is planning to continue making loans to affordable housing developers with its Trust Fund.

Currently, it is planning to make $6 million in loans to two affordable housing developments. Additional funds will be available to make more loans throughout 2024. These loans will help HEART achieve its mission of creating more affordable housing units, while increasing its revenue from developer loan origination fees.

Over the next year HEART will also expend significant resources creating new programs to create and preserve affordable housing by financing the acquisition of privately owned, existing apartment buildings and by providing staffing help to cities to assist them with carrying out their affordable housing programs.

HEART will also explore the possibility of developing a loan program to help mobile homeowners replace their units with new ones.

Due to continuing high interest rates, it is likely HEART’s first-time homebuyer down payment loan program, “Opening Doors,” will continue to see low demand for its loans. HEART will continue to present community workshops for first time homebuyers and work with realtors and cities to help buyers prepare for a time when homebuying becomes feasible again.

Requests for Information
This financial report is designed to provide a general overview of HEART’s finances for all those interested.

Questions concerning any of the information provided in this report, or requests for additional financial information should be addressed to Housing Endowment and Regional Trust of San Mateo County, Attn:

Executive Director, 2905 S. El Camino Real, San Mateo, CA 94403. 9 ATTACHMENT 5

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10 ATTACHMENT 5

BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
11 ATTACHMENT 5

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12 ATTACHMENT 5

Housing Endowment and Regional Trust of San Mateo County Statements of Net Position
June 30, 2023 and 2022
2023 2022
Assets
Cash and investments $ 10,130,466 $ 8,053,608
Receivables, net:

Interest 1,311,665 1,118,907
Loans 9,809,489 10,512,573
Accounts 162,343 533
Restricted assets:

Temporarily restricted:

Cash and cash equivalents 414,960 411,932
Total Assets 21,828,923 20,097,553
Liabilities
Accounts payable 62,390 47,902
Long-term liabilities:

San Mateo County Measure K loan 4,620,000 4,620,000
Total Liabilities 4,682,390 4,667,902
Net Position
Restricted for:

Home Buyer Assistance Loan Program -
pledge account 414,960 411,932
Unrestricted 16,731,573 15,017,719
Total Net Position $ 17,146,533 $ 15,429,651
Governmental Activities
The notes to the financial statements are an integral part of this statement. 13 ATTACHMENT 5

2023 2022
Expenses
General management and administrative support 669,638 $ 524,837 Legal services 11,274 24,816
Interest on long-term debt 83,212 44,960
Miscellaneous 135 -
Total Expenses 764,259 594,613
Program Revenues
Operating grants and contributions:

Member agencies 236,286 236,280
Donors 1,823,882 4,165,177
Charges for Services 4,800 23,078
Total Program Revenues 2,064,968 4,424,535
Net Program Revenue (Expenses) 1,300,709 3,829,922
General Revenues
Investment earnings 416,173 58,889
PPP Loan forgiveness 0 62,500
Total General Revenues 416,173 121,389
Change in Net Positions 1,716,882 3,951,311
Net Positions - beginning 15,429,651 11,478,340
Net Positions - ending $ 17,146,533 $ 15,429,651
Housing Endowment and Regional Trust of San Mateo County Statements of Activities
For the Years Ended June 30, 2023 and 2022
Governmental Activities
The notes to the financial statements are an integral part of this statement. 14 ATTACHMENT 5

BASIC FINANCIAL STATEMENTS
Fund Financial Statements
15 ATTACHMENT 5

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16 ATTACHMENT 5

2023 2022
Assets
Cash and investments $ 10,130,466 $ 8,053,608
Receivables, net:

Interest 1,311,665 1,118,907
Loans 9,809,489 10,512,573
Accounts 162,343 533
Cash - restricted 414,960 411,932
Total Assets $ 21,828,923 $ 20,097,553
Liabilities, Deferred Inflows of
Resources, and Fund Balance
Liabilities
Accounts payable $ 62,390 $ 47,902
Total Liabilities 62,390 47,902
Deferred Inflows of Resources
Unavailable revenues 1,311,665 1,118,907
Total Deferred Inflows of Resources 1,311,665 1,118,907 Fund Balance
Nonspendable 9,809,489 10,512,573
Restricted 414,960 411,932
Unassigned 10,230,419 8,006,239
Total Fund Balance 20,454,868 18,930,744
Total Liabilities, Deferred Inflows of Resources, and Fund Balance $ 21,828,923 $ 20,097,553 Reconciliation of Fund Balance Sheets to the Statements of Net Position:

Total Fund Balance - Governmental Fund $ 20,454,868 $ 18,930,744 Long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the fund
Interest receivable 1,311,665 1,118,907
Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Fund Balance Sheet Paycheck Protection Program loan - -
County of San Mateo-Measure-K loan (4,620,000) (4,620,000) Net position of governmental activities $ 17,146,533 $ 15,429,651 Housing Endowment and Regional Trust of San Mateo County Balance Sheets - Governmental Fund
June 30, 2023 and 2022
The notes to the financial statements are an integral part of this statement. 17 ATTACHMENT 5

Housing Endowment and Regional Trust of San Mateo County Statements of Revenues, Expenditures, and Changes in Fund Balance For the Years Ended June 30, 2023 and 2022
2023 2022
Revenues
Member agency contributions $ 236,286 $ 236,280
Donor contributions 1,823,882 4,165,177
Charges for services 4,800 23,078
Investment earnings 223,415 87,819
Total Revenues 2,288,383 4,512,354
Expenditures
General management and administrative support 669,638 524,837 Legal services 11,274 24,816
Miscellaneous 135 -
Debt service:

Interest and fiscal charges 83,212 44,960
Total Expenditures 764,259 594,613
Excess (Deficit) of Revenues Over Expenditures 1,524,124 3,917,741 Other Financing Sources (Uses)
Loan proceeds - 1,120,000
Total Other Financing Sources (Uses) - 1,120,000
Net Change in Fund Balance 1,524,124 5,037,741
Fund Balance - Beginning 18,930,744 13,893,003
Fund Balance - Ending $ 20,454,868 $ 18,930,744
Reconciliation of the Statements of Revenues, Expenditures, and Changes in Fund Balance of Governmental Fund to the Statements of Activities (page 14)
Net change in fund balance - governmental fund $ 1,524,124 $ 5,037,741 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 192,758 (28,930) Gain due to the PPP loan forgiveness recognized as revenue in the government-wide statement of activities, but no long-term debt transactions recorded in the governmental fund statement of revenues, expenditures, and changes in fund balance - 62,500
Loan proceeds provided current financial resources to governmental funds, but increased long-term liabilities in the government-wide statemem of net position. - (1,120,000)
Change in net positions of governmental activities $ 1,716,882 $ 3,951,311 The notes to the financial statements are an integral part of this statement. 18 ATTACHMENT 5

Notes to the Basic Financial Statements
19 ATTACHMENT 5

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20 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST OF SAN MATEO COUNTY

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2023 AND 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Reporting Entity
On February 26, 2002, the County of San Mateo (County) approved establishment of a housing trust fund for the County and set aside $3 Million from reserves to be used as the initial capitalization for the fund.

A Joint Powers Agreement (Agreement) between the County and certain cities and towns within the County (Member Agencies) established the Housing Endowment and Regional Trust (HEART) in 2003 under the Joint Exercise of Powers Act per California Government Code Sections 6500 et seq. The Agreement was in effect at least until March 30, 2013 and can be terminated thereafter according to the terms specified in the Agreement. HEART’s general purpose is to support and generate funding that will result in permanent additions to workforce housing needs in San Mateo County. HEART obtained a determination from the Internal Revenue Service of its tax-exempt status and classification as a public charity under Section 501(c)(3) of the Internal Revenue Code (Code), effective January 8, 2008.

Contributions to HEART are tax deductible under Section 170 of the Code.

HEART is an entity separate from each participating entity and is under the direction of a Board of Directors (Board). The Board is comprised of 11 elected officials from the County and Member Agencies and 10 at-large members who are not publicly elected officials. The Board appoints a managing agent who is responsible for the day-to-day administration of HEART under its direction.

The County also made an initial allocation of $75,000 for administrative costs in addition to the $3 Million initial capitalization. HEART received $2.075 Million in fiscal year 2004 and the remaining $1 Million was paid in equal installments from fiscal years 2005 through 2009. The Member Agencies support HEART by contributing annual dues. The dues were assessed annually through fiscal year 2009 based upon Member Agency’s population information used by City/County Association of Governments of San Mateo County (C/CAG). The dues remained fixed from fiscal years 2009 through 2011. The dues were reduced by 10% annually in FY 2012, and remained fixed in FY 2014 through FY 2023 at the lower rate.

Monies allocated and disbursed to HEART can be expended only for purposes authorized under the Agreement.
(b) Measurement Focus, Basis of accounting, and Financial Statement Presentation Under the new financial reporting model, governments are required to present government-wide and fund financial statements along with reconciliation from the fund financial statements to the governmentwide statements. The government-wide financial statements are reported on a basis of accounting similar to a commercial enterprise, which is different from the traditional basis of accounting used for the fund financial statements.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred regardless of when the related cash flows take place. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. 21 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST OF SAN MATEO COUNTY

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2023 AND 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (b) Measurement Focus, Basis of accounting, and Financial Statement Presentation (continued) Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized as soon as they are both measurable and available. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. Revenues from reimbursement type programs are considered to be available when they are collectible within two months of the end of the current fiscal period in order to properly match revenues with related expenditures. Expenditures are recognized in the accounting period in which the liability is incurred.

Cash and Cash Equivalents: Cash and cash equivalents include all monies held in banks, highly liquid investments with maturities of less than three months and cash held in the San Mateo County Investment Pool (County Pool). A portion of the cash balance is pooled with other funds of the County to earn a higher rate of return than could be earned by investing the funds individually. HEART considers its equity in the County’s investment pool to be cash equivalents.

Receivables: All receivables are reported at their gross value and, where appropriate, are reduced by the estimated portion that is expected to be uncollectible.

Restricted Assets: Amounts maintained in separate bank accounts are classified as restricted assets on the balance sheet because uses of the funds are externally restricted by the lending agencies to maintain a minimum balance in the Pledge Account for financing eligible housing developers and homeowners.

Long-term Obligations: Long-term debts are reported as liabilities in the government-wide financial statements. In the fund financial statements, governmental fund types report the face amount of the debt issued as other financing sources and interest and principal payments made in the current period are reported as debt service expenditures.
(c) Use of Estimates
The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results based on subsequent events could differ from those estimates.
(d) Budgetary Information
HEART adopts an annual budget that can be amended throughout the year. The basis used to prepare the budget is the same as the basis used to reflect actual revenues and expenditures except that unrealized gains and losses are not included in the budget. See Note 1 of the notes to the required supplementary information for detail.
22 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST OF SAN MATEO COUNTY

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2023 AND 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (e) New Pronouncements
In fiscal year 2022-23, HEART adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board Statements:
 GASB Statement No. 91, Conduit Debt Obligations – The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. The requirements of this statement did not apply to the HEART for the current fiscal year.
 GASB Statement 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements – The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP in an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. The requirements of this statement did not apply to the HEART for the current fiscal year.  GASB Statement No. 96, Subscription-based Information Technology Arrangements – This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset – an intangible asset – and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. The requirements of this Statement did not apply to the HEART for the current fiscal year.
23 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST OF SAN MATEO COUNTY

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2023 AND 2022

2. CASH AND INVESTMENTS
(a) Cash and Investments
As of June 30, 2023 and 2022, HEART’s cash and investments consisted of:

Cash Deposits
The carrying amount of HEART’s cash deposits were a total of $1,921,961. Bank balances before reconciling items were a positive amount of $1,921,961 as of June 30, 2023. The carrying amount of HEART’s cash deposits were a total of $286,210. Bank balances before reconciling items were a positive amount of $292,991 as of June 30, 2022.

The California Government Code requires California banks and savings and loan associations to secure HEART’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in HEART’s name. The fair value of pledged securities must equal at least 110% of HEART’s cash deposits. California law also allows institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of the total cash deposits. HEART’s cash deposit was fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The remaining amount was not collateralized San Mateo County Investment Pool
Investment in the County Pool is reported at fair value. The change in fair value for the year is recorded as unrealized gain or loss and reported as part of investment earnings. Fair value is based on information provided by the County Treasurer. The fair value in HEART's investment in the County Pool as of June 30, 2023 and 2022 was $8,208,505 and $7,764,308 respectively. The fair value factor of 0.9715 and

0.9688 was used to calculate the fair value of the investments in the County Pool for fiscal year 2023 and fiscal year 2022.

HEART does not have a formally adopted investment policy.

FY 22-23 FY 21-22
Cash and investments:

Cash on hand $ - $ 3,090
Wells Fargo Checking and Savings Accounts 1,833,816 47,343 Meriwest Committed Account 88,145 238,867
San Mateo County Investment Pool 8,208,505 7,764,308
Total unrestricted cash and investments 10,130,466 8,053,608 Meriwest Restricted Account 414,960 411,932
Total cash and investments $ 10,545,426 $ 8,465,540
24 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST OF SAN MATEO COUNTY

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2023 AND 2022

2. CASH AND INVESTMENTS (CONTINUED)
(b) Risk Disclosures
Interest Risk: Interest rate risk is the market value fluctuation due to overall changes in the interest rates.

It is mitigated by limiting the average maturity of HEART’s portfolio.

Investments held in HEART grouped by maturity date as of June 30, 2023 and 2022 are shown below:

Credit Risk: Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of an issuer to repay its debt. As of June 30, 2023, HEART’s deposits and investments were rated as follow:

Custodial Credit Risk: Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside.

3. RECEIVABLES
(a) Interest Receivable
The interest receivable balance reported at June 30, 2023 and 2022 of $1,311,665 and $1,118,907 respectively represent uncollected interest on loans receivable and fourth quarter interest due from the County Treasurer on investments made by HEART in the County Pool.

FY2023
Investment Type Total 1 year or Less 1 - 2 years 2- 3 years San Mateo County Investment Pool $ 8,208,505 $ 8,208,505 $ - $ - Total Investments $ 8,208,505 $ 8,208,505 $ - $ -
FY2022
Investment Type Total 1 year or Less 1 - 2 years 2- 3 years San Mateo County Investment Pool $ 7,764,308 $ 7,764,308 $ - $ - Total Investments $ 7,764,308 $ 7,764,308 $ - $ -
Investment Maturities (in years)
Investment Maturities (in years)
Moody's S&P % of Portfolio Moody's S&P % of Portfolio
San Mateo County Investment Pool Not Rated Not Rated 100% Not Rated Not Rated 100% Total 100% 100%
FY2023 Credit Quality Ratings FY2022 Credit Quality Ratings 25 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST OF SAN MATEO COUNTY

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2023 AND 2022

3. RECEIVABLES (CONTINUED)
(b) Loans Receivable
Loans receivable as of June 30, 2023and 2022 consist of the following:
2023 2022
In September 2006, HEART loaned $1,730,000 of program funds to The Crossings Phase II, L.P. for the development of the 113-unit The Village at the Crossing project in San Bruno, CA, which will provide housing for very-low and extremely-low income households. The loan has a term of 55 years from the issuance of the Certificate of Occupancy and bears interest at a rate of 3% per annum. The Certificate of Occupancy was issued on January 10, 2008. $ 1,709,866 $ 1,721,724 In June 2006, HEART signed a loan agreement with Hillcrest Senior Housing Corporation (HSHC) for $510,000 to assist with construction financing of the 39-unit Hillcrest Gardens project in Daly City, CA, which will provide housing for very-low and extremely-low income seniors. The loan has a term of 55 years from the issuance of the Certificate of Occupancy and/or Notice of Completion for the development, whichever is earlier, and bears interest at a rate of 3% per annum. The Notice of Completion was issued on December 11, 2008.
510,000 510,000
In February 2015, HEART signed a loan agreement with Habitat for Humanity for $500,000 to assist in the acquisition of the land and improvements located at 612 Jefferson Avenue, Redwood City (“Property”) to build a multifamily development. The loan is secured by a Deed of Trust recorded against the property. The loan has a term of 5 years with an option to extending for a term of one year and bears interest at a rate 0% for the first five years and at a rate of 3% if the borrower fails to achieve the project completion milestone at maturity.
487,500 500,000
In December 2007, HEART signed a loan agreement with Trestle Glen Associates for $1,760,000 to assist with the development of a 119-unit rental housing project in Colma, CA, which will provide housing for very-low and extremely-low income households. The loan has a term of 55 years from the issuance of the Certificate of Occupancy and/or Notice of Completion for the development, whichever is later, and bears interest at a rate of 3% per annum. The Certificate of Occupancy was issued on December 30, 2009. 1,760,000 1,760,000 In October 2015, Bridge Housing Ventures assumed National Church Residences loan including accrued interest for the amount of $542,123, to assist with the one hundred units of rental housing affordable to low-income households, commonly known as Ocean View Senior Apartments, located at 555 Crespi Drive in Pacifica, California. The loan has a term of 57 years from the date of the modification agreement, which bears interest at a rate of 3% per annum commencing on October 16, 2016. 542,123 542,123 Sub-total carried forward $ 5,009,489 $ 5,033,847
26 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST OF SAN MATEO COUNTY

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2023 AND 2022

3. RECEIVABLES (CONTINUED)
(b) Loans Receivable
2023 2022
Sub-total carried forward $ 5,009,489 $ 5,033,847
In March 2011, HEART signed a loan agreement with Mid-Peninsula South City, L.P. for $600,000, which was funded by the Genetech Foundation South Francisco Fund to assist with the development of 62-units of a 109-unit rental housing project in South San Francisco, CA, which will provide housing for low and very-low income households. The loan has a term of 55 years from the issuance of the Certificate of Occupancy, which evidences project completion and bears interest at a rate of 3% per annum commencing upon project completion. The Certificate of Occupancy was issued on October 19, 2012. 600,000 600,000
In March 2011, HEART signed a loan agreement with Mid-Peninsula South City II, L.P. for $400,000, which was funded by the Genetech Foundation South Francisco Fund to assist with the development of 47-units of a 109-unit rental housing project in South San Francisco, CA, which will provide housing for low and very-low income households. The loan has a term of 55 years from the issuance of the Certificate of Occupancy, which evidences project completion and bears interest at a rate of 3% per annum commencing upon project completion. The Certificate of Occupancy was issued on October 19, 2012. 400,000 400,000
In September 2021, HEART signed a loan agreement with Nugent Square Partners, L.P. for $850,000 to rehabilitate an existing affordable housind development in need of emergency repairs. Nugent Square apartments is located in the City of East Palo Alto and consists of 32 units affordable to very low- and extremely low-income households. The loan has a term of two years and bears interest at a rate of 3% commencing on October 19, 2021. - 678,726
In December 2021, HEART signed a Deveopment Loan Agreement with MP Downtown San Mateo Associates, L.P. to provide $3,800,000 for the development of 225 rental homes for extremely low- very low- and low-income individuals and families. The project is located in the City of San Mateo. The loan has a term of 55 years from and bears an interest rate of 3% commencing in March 2022. 3,800,000 3,800,000 Total Loans Receivable $ 9,809,489 $ 10,512,573
27 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST OF SAN MATEO COUNTY

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2023 AND 2022

4. ACCOUNTS PAYABLE
Accounts payable comprises of the following:

5. NON-CURRENT LIABILITIES
The following is summary of non-current liability activity of HEART:

San Mateo County: Measure-K loan
On August 1, 2017 HEART entered into a loan agreement with the County of San Mateo for an amount of $5,000,000 with a maturity date of July 31, 2024. Interest rate will be paid annually based on the amount of interest that the loan would have earned had it been invested in the San Mateo County Pooled Investment rate starting twelve months from the date of the initial disbursement. The proceeds of the loan will to be used to make predevelopment, acquisition, construction and bridge loans that are consistent with the terms of HEART’s Quick Start Loan Program. As of June 30, 2023 HEART drawn an amount of $4,620,000 from the total loan agreement of $5,000,000. 2023 2022
Payable for contractor service $ 4,598 $ 12,039
Accrued payroll 57,792 35,863
Total Accounts payable $ 62,390 $ 47,902
Balance at Balance at
July 1, 2022 Additions Deletions June 30, 2023
San Mateo County:Measure-K $ 4,620,000 $ - $ - $ 4,620,000 Total $ 4,620,000 $ - $ - $ 4,620,000
Balance at Balance at
July 1, 2021 Additions Deletions June 30, 2022
San Mateo County:Measure-K $ 3,500,000 $ 1,120,000 $ - $ 4,620,000 Paycheck Protection Program loan:

Loan # 9780199-02 62,500 - (62,500) -
Total $ 3,562,500 $ 1,120,000 $ (62,500) $ 4,620,000
28 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST OF SAN MATEO COUNTY

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2023 AND 2022

6. REVENUES
(a) Operating Grants and Contributions
Operating grants and contributions consist of the following:

Member Agencies Dues
Member Agencies are billed annually for dues to cover administrative expenses.

Donors
Other operating grants and contributions include contributions from private donors. (b) Charges for Services
Charges for services are loan processing fees collected from home buyers upon close of escrow on each home loan.
(c) Investment Earnings
Investment earnings reported in the government fund statements of revenues, expenditures, and changes in fund balance comprise of quarterly interest received from the County Treasurer on investments made by HEART in the County Pool and interest collected from developers on cumulative interest receivable accrued. Interest is recorded in the year it is earned and is available to pay current liabilities.

Investment earnings reported in the government-wide statements of activities includes earnings from the County investments noted above plus interest earned in the current year on loans made to developers.

7. FUND BALANCES / NET POSITION
As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which HEART is bound to honor constraints on the specific purpose for which amount in the fund can be spent. As of June 30, 2023 and 2022, fund balance for the governmental fund consists of the following classifications respectively:
(a) Nonspendable Fund Balance – includes amounts that cannot be spent because they are not in spendable form, such as prepaid items and loans receivable. (b) Restricted Fund Balance – includes amounts that can be spent only for specific purposes stipulated by external resources providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers. (c) Unassigned Fund Balance – is the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications.

In circumstances when an expenditure is made for a purpose for which amounts are available in multiple fund balance classifications, fund balance is depleted in the order of restricted and then unassigned. 29 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST OF SAN MATEO COUNTY

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2023 AND 2022

7. FUND BALANCES / NET POSITION (CONTINUED)
At fiscal year-end, fund balance reported on the balance sheets on page 17 includes:

The amount shown as restricted above is also reported as restricted net position on the statement of net positions on page 13.

8. RISK MANAGEMENT
HEART is exposed to various risks of losses related to assets having a current or future benefit to HEART.

HEART has insurance coverage provided by the Hartford. In addition, HEART has special excess liability insurance coverage provided as part of the County's insurance coverage. The existing insurance policies are current as of the issuance of this report. Under an agreement with the County, the Department of Housing (DOH) of San Mateo County provides fiscal and program services to HEART. Agents of the DOH are covered by the County’s insurance provider. The County Counsel provides legal representation for any claims or litigation of HEART under a contract. For the years ended June 30, 2023 and 2022, the annual amount contracted with County Counsel for legal representation was $9,773 and $24,816 respectively.
2023 2022
Nonspendable $ 9,809,489 $ 10,512,573
Restricted:

Home Buyer Assistance Loan Program - pledge account
see Note 2(a) 414,960 411,932
Unassigned 10,230,419 8,006,239
Total Fund Balance $ 20,454,868 $ 18,930,744
30 ATTACHMENT 5

REQUIRED SUPPLEMENTARY INFORMATION
31 ATTACHMENT 5

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32 ATTACHMENT 5

Actual
Amount Variance with
Budgeted Budgeted Budgetary Final Budget
Amount Amount Basis Positive
Original Final (Note 1) (Negative)
Revenues
Member Agency contributions $ 236,280 $ 236,280 $ 236,286 $ 6 Other contributions 152,000 165,000 1,823,882 1,658,882 Investment earnings 111,996 111,996 138,219 26,223
Loan proceeds - interest 123,429 103,572 75,953 (27,619) Charges for services and other 658,100 182,000 4,800 (177,200) administrative support 1,281,805 798,848 2,279,140 1,480,292 Expenditures
General management and
administrative support 800,705 688,381 669,638 18,743
Legal services 25,000 15,000 11,274 3,726
Debt services
Interest and fiscal charges 95,467 95,467 83,212 12,255 Contingency 360,633 - 135 (135)
Total Expenditures 1,281,805 798,848 764,259 34,589
Net Change in Fund Balance $ - $ - 1,514,881 1,514,881
Fund Balance - beginning 19,180,792
Fund Balance - ending $ 20,695,673
Housing Endowment and Regional Trust of San Mateo County Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
33 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST OF SAN MATEO COUNTY

NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2023 and 2022

1. BUDGETS, BUDGETARY PROCESS, AND ENCUMBRANCES
HEART uses two funding sources to manage operations: Administrative Funds and Program Funds. The Board adopts an annual operating budget, which can be amended by the Board throughout the year. Actual revenues and expenditures presented reflect activity in both funds during the year. As discussed in Note 1(d) of the notes to the basic financial statements, the basis used to prepare the budget is the same as the basis used to reflect actual revenues and expenditures, except for unrealized gains and losses under GASB 31. The financial statements record unrealized gains and losses as required by Generally Accepted Accounting Principles (GAAP). Adjustments were made to certain budgeted accounts to reflect changes made in financial statement presentation.

HEART uses an encumbrance system to assist in controlling expenditures. Purchase orders, contracts, and other commitments for the expenditures of monies are recorded under this system in order to reserve applicable appropriations. Any encumbrances outstanding at year-end are recorded as reservations of fund balance as they do not constitute expenditures or liabilities.

The actual net change in fund balance under the budgetary basis on page 33 is reconciled to the change in fund balance under GAAP on page 18 as follows:

Explanation of difference between budgetary basis and GAAP basis:

FY 22-23
Ca Net Change in Fund Balance - budgetary basis $ 1,514,881 sh on hand - Net unrealized loss on cash in County Investment Pool
under GASB 31 9,243
Change in Fund Balance - GAAP basis $ 1,524,124
Fund Balance - budgetary basis $ 20,695,673
Unrealized loss on cash in County Investment Pool
under GASB 31 as of June 30, 2023 (240,805)
Fund Balance - GAAP basis $ 20,454,868
34 ATTACHMENT 5

SUPPLEMENTARY INFORMATION
35 ATTACHMENT 5

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36 ATTACHMENT 5

Program Administrative
Funds Funds Total
Revenues
Member agency contributions $ - $ 236,286 $ 236,286
Donor contributions 1,714,318 109,564 1,823,882
Investment earnings 59,089 79,130 138,219
Loan proceeds interest 17,130 58,823 75,953
Loan origination fees 4,800 - 4,800
Total Revenues 1,795,337 483,803 2,279,140
Expenditures
General management and
administrative support 490,081 179,557 669,638
Legal services 9,724 1,550 11,274
Debt services
Interest and fiscal charges 83,212 - 83,212
Total Expenditures 583,017 181,242 764,259
Net Change in Fund Balance 1,212,320 302,561 1,514,881
Fund Balance - beginning 18,141,589 1,039,203 19,180,792 Fund Balance - ending $ 19,353,909 $ 1,341,764 $ 20,695,673 required by generally accepted accounting principles.

Housing Endowment and Regional Trust of San Mateo County Status of Funds
For the Year Ended June 30, 2023
Notes:
(1) All income received from investment earnings is categorized to Program Funds (2) The above schedule does not include adjustments made for GASB No. 31 as 37 ATTACHMENT 5

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38 ATTACHMENT 5

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Board of Directors
of the Housing Endowment and Regional Trust
of San Mateo County
San Mateo, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and major fund of the Housing Endowment and Regional Trust of San Mateo County (HEART) as of and for the years ended June 30, 2023 and 2022, and the related notes to the financial statements, which collectively comprise HEART’s basic financial statements, and have issued our report thereon dated March 4, 2024.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered HEART’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of HEART’s internal control. Accordingly, we do not express an opinion on the effectiveness of HEART’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. 39 ATTACHMENT 5

To the Board of Directors
of the Housing Endowment and Regional Trust
of San Mateo County
San Mateo, California

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether HEART’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Badawi & Associates, CPAs
Berkeley, California
March 4, 2024
40 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST

OF SAN MATEO COUNTY
Financial Statements and
Independent Auditors’ Report
June 30, 2024 and 2023
ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST

OF SAN MATEO COUNTY
JUNE 30, 2024 and 2023

TABLE OF CONTENTS
Independent Auditors’ Report 1 - 4
Management’s Discussion and Analysis 5 - 10
Basic Financial Statements:

Government-Wide Financial Statements
Statements of Net Positions 13
Statements of Activities 14
Fund Financial Statements
Balance Sheets – governmental fund 17
Statements of Revenues, Expenditures and
Changes in Fund Balance – governmental fund 18
Reconciliation of the Statements of Revenues,
Expenditures and Changes in Fund Balance of
Governmental Fund to the Statements of Activities 18
Notes to the Financial Statements 21 - 30
Required Supplementary Information:

Schedule of Revenues, Expenditures and
Changes in Fund Balance – Budget and Actual
Governmental Fund 33
Notes to the Required Supplementary Information 34
Supplementary Information:

Status of Funds 37
Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ............................................................. 39-41 ATTACHMENT 5

INDEPENDENT AUDITOR’S REPORT
To the Board of Directors
of the Housing Endowment and Regional Trust
of San Mateo County
San Mateo, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities and each major fund of the Housing Endowment and Regional Trust of San Mateo County, California (HEART), as of and for the years ended June 30, 2024 and 2023, and the related notes to the financial statements, which collectively comprise HEART’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of HEART, as of June 30, 2024 and 2023, and the respective changes in financial position thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of HEART and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements HEART’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about HEART’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 1 ATTACHMENT 5

To the Board of Directors
of the Housing Endowment and Regional Trust
of San Mateo County
San Mateo, California

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of HEART’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about HEART’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
2 ATTACHMENT 5

To the Board of Directors
of the Housing Endowment and Regional Trust
of San Mateo County
San Mateo, California

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information on pages 5-9 and 33-34 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise HEART’s basic financial statements. The status of funds schedule is presented for purposes of additional analysis and is not a required part of the basic financial statements.

The status of funds schedule is the responsibility of management and is derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the status of funds schedule is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated August 31, 2025 on our consideration of HEART’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering HEART’s internal control over financial reporting and compliance.

Badawi and Associates, CPAs
Emeryville, California
August 31, 2025
3 ATTACHMENT 5

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4 ATTACHMENT 5

Housing Endowment and Regional Trust of San Mateo County Management’s Discussion and Analysis
As management of the Housing Endowment and Regional Trust of San Mateo County (HEART), we offer our readers of HEART’s financial statements this narrative overview and analysis of its financial activities for the fiscal year ended June 30, 2024. We encourage readers to consider the information presented here in conjunction with the basic financial statements and related notes.

Financial Highlights
• HEART’s total net position as of June 30, 2023 amounted to $19,627,530, an increase of $2,480,997 from the prior year. This increase was the result of receiving $1.8 million in grants to assist in the development of affordable housing, an increase of $354,000 in accrued interest, and the balance from operations.

• Consistent with prior years, HEART’s net position primarily made up of $14.5 million in outstanding interest and loan receivables from affordable housing developers. • Cash and cash equivalents are $9.68 million. This amount is largely comprised of $2,000,000 in borrowed funds from the County of San Mateo Measure-K loan, $7,258,787 in HEART Trust Funds, and $421,359 in restricted funds. Of the total $9.68 million in cash and cash equivalents, $8.5 million can only be used to develop or preserve affordable housing. • During the fiscal year HEART made two loans totaling $6 million dollars to support the development of affordable housing. During the year, HEART received one loan repayment in the amount of $3 million.
• Total operating and program revenue for the year amounted to $2,580,071 comprised of $2 million in grants restricted for affordable housing, $236,363 in contributions from member agencies and the balance of $262,225 from loan origination fees and charges to cities for HEART’s City staffing program.

Overview of the Financial Statements
HEART’s basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-Wide Financial Statements
The government-wide financial statements are designed to provide the reader with a broad overview of HEART’s finances, in a manner similar to a private-sector business.

The statements of net positions present information on HEART’s assets and liabilities, with the difference reported as net positions. Over time, increases or decreases in net positions may serve as a useful indicator of whether the financial position of HEART is improving or deteriorating.

The statements of activities report how HEART’s net positions changed during the most recent two fiscal years. Changes in net positions are reported as soon as underlying events occur, regardless of the timing of the related cash flows. Thus, some revenues and expenses reported in this statement may result in cash flows only in future periods. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

The government-wide financial statements can be found on pages 13 and 14 of this report. 5 ATTACHMENT 5

Housing Endowment and Regional Trust of San Mateo County Management’s Discussion and Analysis
Fund Financial Statements
A fund is a group of related accounts that is used to control resources that have been segregated for specific activities or objectives. HEART uses fund accounting to ensure compliance with various legal requirements, such as the annually adopted budget. Accordingly, a budgetary comparison schedule has been included in the supplementary information section of the financial statements to demonstrate compliance with budget.

Fund financial statements report essentially the same information as the government-wide financial statements. However, unlike the government-wide financial statements, fund financial statements focus on near-term inflows and outflows of expendable resources, as well as on balances of expendable resources available at the end of the fiscal year.

As required by accounting principles, the financial transactions of HEART are accounted for in a Special Revenue Fund, a governmental fund, as monies received by it are legally restricted to specific use. Monies allocated and disbursed to HEART can be expended only for purposes authorized under the Agreement.

The fund financial statements can be found on pages 17 through 18 of this report.

Notes to the Financial Statements
The notes to the financial statements on pages 21 through 30 provide additional information that is essential to the full understanding of the data provided in the government-wide and fund financial statements.

Other information
This report also presents certain required supplementary information concerning compliance with HEART’s annual budget. This information, as well as associated notes, immediately follows the basic financial statements and the accompanying notes.
6 ATTACHMENT 5

Housing Endowment and Regional Trust of San Mateo County Management’s Discussion and Analysis
Financial Analysis – Government-Wide Financial Statements Assets
Cash and cash equivalents
Receivables, net:

Interest
Loans
Accounts
Restricted assets:

Temporarily restricted:

Cash and cash equivalents
Total Assets
Liabilities
Accounts payable
Long-term liabilities
San Mateo County Measure-K Loan
Paycheck Protection Program Loan
Total Liabilities
Net Position
Restricted for:

Homebuyer Assistance Loan Program – pledge
account
Unrestricted
Total Net Positions

2024
$ 9,680,146

1,665,692
12,834,489
104,754

421,359
24,706,440

78,910

5,000,000
0 5,078,910

421,359
19,206,171
$ 19,627,530

2023
$ 10,130,466

1,311,665
9,809,489
162,343

414,960
21,828,923

62,390
4,620,000
0 4,620,000

411,960
16,731,573
$ 17,146,533
• HEART’s total assets are $24,706,440, an increase of $2,877,517 from the previous year. This is an increase of 11.6% compared to the prior year. A $1.7 million grant from the California Department of Housing and Community Development and a $1.3 million grant from the City of Daly City are largely responsible for the net $2.9 million asset increase from the previous year. • Cash and cash equivalents decreased from $10.1 million to approximately $9.7 million. HEART experienced large cash inflow and outflows during the fiscal year. This included receiving $3 million in grants, making $6 million in loans, receiving $3 million in loan repayments and drawing down a $380,000 loan from the County of San Mateo. The net effect of these flows and total operations was a net decrease of $450,300 in cash and cash equivalents. • Loans outstanding increased by a net amount of approximately $3 million due to a new loan to CRP The Ridge at Ralston for a development project in the City of Belmont.

• Total liabilities for the current year are $5,078,910. This represents an increase of $458,920 from the previous year. The increase is largely due to drawing $380,000 from HEART’s Measure-K loan from the County of San Mateo, bringing the total loan from the County to $5 million. The remaining 7 ATTACHMENT 5

Housing Endowment and Regional Trust of San Mateo County Management’s Discussion and Analysis
$78,910 in liabilities includes $65,923 in payroll liabilities for accrued vacation and payroll taxes, and $12,987 in accounts payable to consultants and miscellaneous vendors. • Net position of governmental activities is $17,146,533, an increase of $1,716,882, or 11% more compared to the previous fiscal year. The increase in net position was due to a $1.7 million grant from the California Department of Housing and Community Development for the development of Colibri Commons, and affordable housing development in the City of East Palo Alto.

Changes in Net Positions
Changes in Net Positions

Revenues:

Program Revenues:

Operating grants and contributions
Member Agencies
Donors
Charges for Services
Total Program Revenues

Expenses:

General management and admin support
Legal services
Interest on long-term debt
Miscellaneous
Total Expenses
Net Program Revenue
General Revenues – Investment Earnings
Change in Net Positions
Net positions – beginning
Net positions – ending

2024

$ 236,363
2,081,483
262,225
2,580,071
993,913
1,069
92,748
201
1,027,941

1,552,130
928,867

2,480,997

17,146,533
$ 19,627,530

2023

$ 236,286
1,823,882
4,800
2,064,968
669,638
11,274
83,212
135
764,259

1,300,709
416,173

1,716,882

15,429,651
$ 17,146,533
• Total operating and program revenue during the current period was $2,580,071, higher than the prior year’s amount of $2,064,968. This is an increase of 25% or $519,1033. The increase is due to an increase of $257,601 in contributions received and an increase of $257,425 in charges for services.

Grants of $1.7 million the previous year and a similar amount the current year for the Colibri Commons development in East Palo Alto round out the total program revenue. • The $257,601 in contribution noted above is the result of two contributions from the County of San Mateo: a contribution of $85,436 to HEART’s Trust Fund from the County’s impact fees and a contribution of $114,949 from the County to support the HEART’s City Staffing Program. 8 ATTACHMENT 5

Housing Endowment and Regional Trust of San Mateo County Management’s Discussion and Analysis
• The increase of $257,425 in charges for services is largely comprised of $171,000 in fees charged to cities for HEART’s City Staffing Program, and $90,069 in developer loan fees. • Total expenses incurred during the current period amounted to $1,027,941, an increase of $263,682, or 24.5% more, than the previous year. Most of the increase in expenses is due to the addition of more staff at HEART to meet the increased program work load of HEART’s City Staffing Program.

Budgetary Analysis
Total Revenues and Other
Financing Sources
Total Expenditures and Other
Financing Uses
Net Change in Fund Balance
Budgeted Amount
Final
$ 1,336,253
1,446,392
$ (110,139)
x
Actual Amount –
Budgetary Basis
$ 2,966,132
1,027,941
$ 2,318,191
Variance -Positive
(Negative)
$ 1,629,879
418,451
$ 2,428,330
• Actual revenues were higher than budgeted by $1,629,879. While HEART’s individual revenue sources fluctuated and differed from the budgeted amounts, the $1.7 million grant awarded to HEART for affordable housing development was responsible for generating the large positive variance.
• Operating expenses were lower than budgeted by $418,451. Expenses were lower largely due the lower utilization than expected of outside contract and consulting services.

Beyond FY 2024
In 2025 HEART is planning to continue making loans to affordable housing developers with its Trust Fund.

Currently, is planning on making $3 million in loans two affordable housing projects. Additional funds will be available to make more loans throughout 2025. These loans will help HEART achieve its mission of creating more affordable housing units, while increasing its revenue from developer loan origination fees.

Over the next year HEART will also expend significant resources creating new programs to create and preserve affordable housing by financing the acquisition of privately owned, existing apartment buildings and by providing staffing help to cities to assist them with carrying out their affordable housing programs.

HEART has also developed a loan program to help mobile homeowners replace their units with new ones and anticipates making $1 million in loans to mobile homeowners in 2025.

Due to continuing high interest rates, it is likely HEART’s first-time homebuyer down payment loan program, “Opening Doors,” will continue to see low demand for its loans. HEART will continue to present community workshops for first time homebuyers and work with realtors and cities to help buyers prepare for a time when homebuying becomes feasible again.
9 ATTACHMENT 5

Housing Endowment and Regional Trust of San Mateo County Management’s Discussion and Analysis
Requests for Information
This financial report is designed to provide a general overview of HEART’s finances for all those interested.

Questions concerning any of the information provided in this report, or requests for additional financial information should be addressed to Housing Endowment and Regional Trust of San Mateo County, Attn:

Executive Director, 2905 S. El Camino Real, San Mateo, CA 94403. 10 ATTACHMENT 5

BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
11 ATTACHMENT 5

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12 ATTACHMENT 5

Housing Endowment and Regional Trust of San Mateo County Statements of Net Position
June 30, 2024 and 2023
2024 2023
Assets
Cash and investments $ 9,680,146 $ 10,130,466
Receivables, net:

Interest 1,665,692 1,311,665
Loans 12,834,489 9,809,489
Accounts 104,754 162,343
Restricted assets:

Temporarily restricted:

Cash and cash equivalents 421,359 414,960
Total Assets 24,706,440 21,828,923
Liabilities
Accounts payable 78,910 62,390
Long-term liabilities:

San Mateo County Measure K loan 5,000,000 4,620,000
Total Liabilities 5,078,910 4,682,390
Net Position
Restricted for:

Home Buyer Assistance Loan Program -
pledge account 421,359 414,960
Unrestricted 19,206,171 16,731,573
Total Net Position $ 19,627,530 $ 17,146,533
Governmental Activities
The notes to the financial statements are an integral part of this statement. 13 ATTACHMENT 5

2024 2023
Expenses
General management and administrative support 933,913 $ 669,638 Legal services 1,069 11,274
Interest on long-term debt 92,758 83,212
Miscellaneous 201 135
Total Expenses 1,027,941 764,259
Program Revenues
Operating grants and contributions:

Member agencies 236,363 236,286
Donors 2,081,483 1,823,882
Charges for Services 262,225 4,800
Total Program Revenues 2,580,071 2,064,968
Net Program Revenue (Expenses) 1,552,130 1,300,709
General Revenues
Investment earnings 928,867 416,173
PPP Loan forgiveness - -
Total General Revenues 928,867 416,173
Change in Net Positions 2,480,997 1,716,882
Net Positions - beginning 17,146,533 15,429,651
Net Positions - ending $ 19,627,530 $ 17,146,533
Housing Endowment and Regional Trust of San Mateo County Statements of Activities
For the Years Ended June 30, 2024 and 2023
Governmental Activities
The notes to the financial statements are an integral part of this statement. 14 ATTACHMENT 5

BASIC FINANCIAL STATEMENTS
Fund Financial Statements
15 ATTACHMENT 5

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16 ATTACHMENT 5

2024 2023
Assets
Cash and investments $ 9,680,146 $ 10,130,466
Receivables, net:

Interest 1,665,692 1,311,665
Loans 12,834,489 9,809,489
Accounts 104,754 162,343
Cash - restricted 421,359 414,960
Total Assets $ 24,706,440 $ 21,828,923
Liabilities, Deferred Inflows of
Resources, and Fund Balance
Liabilities
Accounts payable $ 78,910 $ 62,390
Total Liabilities 78,910 62,390
Deferred Inflows of Resources
Unavailable revenues 1,665,692 1,311,665
Total Deferred Inflows of Resources 1,665,692 1,311,665 Fund Balance
Nonspendable 12,834,489 9,809,489
Restricted 421,359 414,960
Unassigned 9,705,990 10,230,419
Total Fund Balance 22,961,838 20,454,868
Total Liabilities, Deferred Inflows of Resources, and Fund Balance $ 24,706,440 $ 21,828,923 Reconciliation of Fund Balance Sheets to the Statements of Net Position:

Total Fund Balance - Governmental Fund $ 22,961,838 $ 20,454,868 Long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the fund
Interest receivable 1,665,692 1,311,665
Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Fund Balance Sheet County of San Mateo-Measure-K loan (5,000,000) (4,620,000) Net position of governmental activities $ 19,627,530 $ 17,146,533 Housing Endowment and Regional Trust of San Mateo County Balance Sheets - Governmental Fund
June 30, 2024 and 2023
The notes to the financial statements are an integral part of this statement. 17 ATTACHMENT 5

Housing Endowment and Regional Trust of San Mateo County Statements of Revenues, Expenditures, and Changes in Fund Balance For the Years Ended June 30, 2024 and 2023
2024 2023
Revenues
Member agency contributions $ 236,363 $ 236,286
Donor contributions 2,081,483 1,823,882
Charges for services 262,225 4,800
Investment earnings 574,840 223,415
Total Revenues 3,154,911 2,288,383
Expenditures
General management and administrative support 933,913 669,638 Legal services 1,069 11,274
Miscellaneous 201 135
Debt service:

Interest and fiscal charges 92,758 83,212
Total Expenditures 1,027,941 764,259
Excess (Deficit) of Revenues Over Expenditures 2,126,970 1,524,124 Other Financing Sources (Uses)
Loan proceeds 380,000 -
Total Other Financing Sources (Uses) 380,000 -
Net Change in Fund Balance 2,506,970 1,524,124
Fund Balance - Beginning 20,454,868 18,930,744
Fund Balance - Ending $ 22,961,838 $ 20,454,868
Reconciliation of the Statements of Revenues, Expenditures, and Changes in Fund Balance of Governmental Fund to the Statements of Activities (page 14)
Net change in fund balance - governmental fund $ 2,506,970 $ 1,524,124 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 354,027 192,758 Loan proceeds provided current financial resources to governmental funds, but increased long-term liabilities in the government-wide statemem of net position. (380,000) -
Change in net positions of governmental activities $ 2,480,997 $ 1,716,882 The notes to the financial statements are an integral part of this statement. 18 ATTACHMENT 5

Notes to the Basic Financial Statements
19 ATTACHMENT 5

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20 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST OF SAN MATEO COUNTY

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2024 AND 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(b) Reporting Entity
On February 26, 2002, the County of San Mateo (County) approved establishment of a housing trust fund for the County and set aside $3 Million from reserves to be used as the initial capitalization for the fund.

A Joint Powers Agreement (Agreement) between the County and certain cities and towns within the County (Member Agencies) established the Housing Endowment and Regional Trust (HEART) in 2003 under the Joint Exercise of Powers Act per California Government Code Sections 6500 et seq. The Agreement was in effect at least until March 30, 2013 and can be terminated thereafter according to the terms specified in the Agreement. HEART’s general purpose is to support and generate funding that will result in permanent additions to workforce housing needs in San Mateo County. HEART obtained a determination from the Internal Revenue Service of its tax-exempt status and classification as a public charity under Section 501(c)(3) of the Internal Revenue Code (Code), effective January 8, 2008.

Contributions to HEART are tax deductible under Section 170 of the Code.

HEART is an entity separate from each participating entity and is under the direction of a Board of Directors (Board). The Board is comprised of 11 elected officials from the County and Member Agencies and 10 at-large members who are not publicly elected officials. The Board appoints a managing agent who is responsible for the day-to-day administration of HEART under its direction.

The County also made an initial allocation of $75,000 for administrative costs in addition to the $3 Million initial capitalization. HEART received $2.075 Million in fiscal year 2004 and the remaining $1 Million was paid in equal installments from fiscal years 2005 through 2009. The Member Agencies support HEART by contributing annual dues. The dues were assessed annually through fiscal year 2009 based upon Member Agency’s population information used by City/County Association of Governments of San Mateo County (C/CAG). The dues remained fixed from fiscal years 2009 through 2011. The dues were reduced by 10% annually in FY 2012, and remained fixed in FY 2014 through FY 2024 at the lower rate.

Monies allocated and disbursed to HEART can be expended only for purposes authorized under the Agreement.
(c) Measurement Focus, Basis of accounting, and Financial Statement Presentation Under the new financial reporting model, governments are required to present government-wide and fund financial statements along with reconciliation from the fund financial statements to the governmentwide statements. The government-wide financial statements are reported on a basis of accounting similar to a commercial enterprise, which is different from the traditional basis of accounting used for the fund financial statements.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred regardless of when the related cash flows take place. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. 21 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST OF SAN MATEO COUNTY

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2024 AND 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (c) Measurement Focus, Basis of accounting, and Financial Statement Presentation (continued) Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized as soon as they are both measurable and available. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. Revenues from reimbursement type programs are considered to be available when they are collectible within two months of the end of the current fiscal period in order to properly match revenues with related expenditures. Expenditures are recognized in the accounting period in which the liability is incurred.

Cash and Cash Equivalents: Cash and cash equivalents include all monies held in banks, highly liquid investments with maturities of less than three months and cash held in the San Mateo County Investment Pool (County Pool). A portion of the cash balance is pooled with other funds of the County to earn a higher rate of return than could be earned by investing the funds individually. HEART considers its equity in the County’s investment pool to be cash equivalents.

Receivables: All receivables are reported at their gross value and, where appropriate, are reduced by the estimated portion that is expected to be uncollectible.

Restricted Assets: Amounts maintained in separate bank accounts are classified as restricted assets on the balance sheet because uses of the funds are externally restricted by the lending agencies to maintain a minimum balance in the Pledge Account for financing eligible housing developers and homeowners.

Long-term Obligations: Long-term debts are reported as liabilities in the government-wide financial statements. In the fund financial statements, governmental fund types report the face amount of the debt issued as other financing sources and interest and principal payments made in the current period are reported as debt service expenditures.
(d) Use of Estimates
The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results based on subsequent events could differ from those estimates.
(e) Budgetary Information
HEART adopts an annual budget that can be amended throughout the year. The basis used to prepare the budget is the same as the basis used to reflect actual revenues and expenditures except that unrealized gains and losses are not included in the budget. See Note 1 of the notes to the required supplementary information for detail.
22 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST OF SAN MATEO COUNTY

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2024 AND 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (f) New Pronouncements
In fiscal year 2022-23, HEART adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board Statements:
 GASB Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62 – The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability.

2. CASH AND INVESTMENTS
(a) Cash and Investments
As of June 30, 2024 and 2023, HEART’s cash and investments consisted of:

Cash Deposits
The carrying amount of HEART’s cash deposits were a total of $3,752,129. Bank balances before reconciling items were a positive amount of $3,752,129 as of June 30, 2024. The carrying amount of HEART’s cash deposits were a total of $3,752,129. Bank balances before reconciling items were a positive amount of $3,752,129 as of June 30, 2023.

The California Government Code requires California banks and savings and loan associations to secure HEART’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in HEART’s name. The fair value of pledged securities must equal at least 110% of HEART’s cash deposits. California law also allows institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of the total cash deposits. HEART’s cash deposit was fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The remaining amount was not collateralized FY 23-24 FY 22-23
Cash and investments:

Cash on hand $ - $ -
Wells Fargo Checking and Savings Accounts 3,501,846 1,833,816 Meriwest Committed Account 250,283 88,145
San Mateo County Investment Pool 5,928,017 8,208,505
Total unrestricted cash and investments 9,680,146 10,130,466 Meriwest Restricted Account 421,359 414,960
Total cash and investments $ 10,101,505 $ 10,545,426
23 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST OF SAN MATEO COUNTY

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2024 AND 2023

2. CASH AND INVESTMENTS (CONTINUED)
(a) Cash and Investments, Continued
San Mateo County Investment Pool
Investment in the County Pool is reported at fair value. The change in fair value for the year is recorded as unrealized gain or loss and reported as part of investment earnings. Fair value is based on information provided by the County Treasurer. The fair value in HEART's investment in the County Pool as of June 30, 2024 and 2023 was $5,928,017 and $8,208,505 respectively. The fair value factor of 0.9913 and

0.9715 was used to calculate the fair value of the investments in the County Pool for fiscal year 2024 and fiscal year June 30, 2023.

HEART does not have a formally adopted investment policy. (b) Risk Disclosures
Interest Risk: Interest rate risk is the market value fluctuation due to overall changes in the interest rates.

It is mitigated by limiting the average maturity of HEART’s portfolio. Investments held in HEART grouped by maturity date as of June 30, 2024 and 2023 are shown below:

Credit Risk: Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of an issuer to repay its debt. As of June 30, 2024, HEART’s deposits and investments were rated as follow:

Custodial Credit Risk: Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside.

FY2024
Investment Type Total 1 year or Less 1 - 2 years 2- 3 years San Mateo County Investment Pool $ 5,928,017 $ 5,928,017 -$ -$ Total Investments $ 5,928,017 $ 5,928,017 -$ -$
FY2023
Investment Type Total 1 year or Less 1 - 2 years 2- 3 years San Mateo County Investment Pool $ 8,208,505 $ 8,208,505 -$ -$ Total Investments $ 8,208,505 $ 8,208,505 -$ -$
Investment Maturities (in years)
Investment Maturities (in years)
Moody's S&P % of Portfolio Moody's S&P % of Portfolio
San Mateo County Investment Pool Not Rated Not Rated 100% Not Rated Not Rated 100% Total 100% 100%
FY2024Credit Quality Ratings FY2023 Credit Quality Ratings 24 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST OF SAN MATEO COUNTY

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2024 AND 2023

3. RECEIVABLES
(a) Interest Receivable
The interest receivable balance reported at June 30, 2024 and 2023 of $1,665,692 and $1,311,665 respectively represent uncollected interest on loans receivable and fourth quarter interest due from the County Treasurer on investments made by HEART in the County Pool. (b) Loans Receivable
Loans receivable as of June 30, 2024and 2023 consist of the following:
2024 2023
In September 2006, HEART loaned $1,730,000 of program funds to The Crossings Phase II, L.P. for the development of the 113-unit The Village at the Crossing project in San Bruno, CA, which will provide housing for very-low and extremely-low income households. The loan has a term of 55 years from the issuance of the Certificate of Occupancy and bears interest at a rate of 3% per annum. The Certificate of Occupancy was issued on January 10, 2008. $ 1,709,866 $ 1,709,866 In June 2006, HEART signed a loan agreement with Hillcrest Senior Housing Corporation (HSHC) for $510,000 to assist with construction financing of the 39-unit Hillcrest Gardens project in Daly City, CA, which will provide housing for very-low and extremely-low income seniors. The loan has a term of 55 years from the issuance of the Certificate of Occupancy and/or Notice of Completion for the development, whichever is earlier, and bears interest at a rate of 3% per annum. The Notice of Completion was issued on December 11, 2008.
510,000 510,000
In February 2015, HEART signed a loan agreement with Habitat for Humanity for $500,000 to assist in the acquisition of the land and improvements located at 612 Jefferson Avenue, Redwood City (“Property”) to build a multifamily development. The loan is secured by a Deed of Trust recorded against the property. The loan has a term of 5 years with an option to extending for a term of one year and bears interest at a rate 0% for the first five years and at a rate of 3% if the borrower fails to achieve the project completion milestone at maturity.
462,500 487,500
In December 2007, HEART signed a loan agreement with Trestle Glen Associates for $1,760,000 to assist with the development of a 119-unit rental housing project in Colma, CA, which will provide housing for very-low and extremely-low income households. The loan has a term of 55 years from the issuance of the Certificate of Occupancy and/or Notice of Completion for the development, whichever is later, and bears interest at a rate of 3% per annum. The Certificate of Occupancy was issued on December 30, 2009. 1,760,000 1,760,000 Sub-total carried forward $ 4,442,366 $ 4,467,366
25 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST OF SAN MATEO COUNTY

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2024 AND 2023

3. RECEIVABLES (CONTINUED)
(b) Loans Receivable
2024 2023
Sub-total carried forward $ 4,442,366 $ 4,467,366
In October 2015, Bridge Housing Ventures assumed National Church Residences loan including accrued interest for the amount of $542,123, to assist with the one hundred units of rental housing affordable to low-income households, commonly known as Ocean View Senior Apartments, located at 555 Crespi Drive in Pacifica, California. The loan has a term of 57 years from the date of the modification agreement, which bears interest at a rate of 3% per annum commencing on October 16, 2016. 542,123 542,123 In March 2011, HEART signed a loan agreement with Mid-Peninsula South City, L.P. for $600,000, which was funded by the Genetech Foundation South Francisco Fund to assist with the development of 62-units of a 109-unit rental housing project in South San Francisco, CA, which will provide housing for low and very-low income households. The loan has a term of 55 years from the issuance of the Certificate of Occupancy, which evidences project completion and bears interest at a rate of 3% per annum commencing upon project completion. The Certificate of Occupancy was issued on October 19, 2012. 600,000 600,000
In March 2011, HEART signed a loan agreement with Mid-Peninsula South City II, L.P. for $400,000, which was funded by the Genetech Foundation South Francisco Fund to assist with the development of 47-units of a 109-unit rental housing project in South San Francisco, CA, which will provide housing for low and very-low income households. The loan has a term of 55 years from the issuance of the Certificate of Occupancy, which evidences project completion and bears interest at a rate of 3% per annum commencing upon project completion. The Certificate of Occupancy was issued on October 19, 2012. 400,000 400,000
In December 2021, HEART signed a Deveopment Loan Agreement with MP Downtown San Mateo Associates, L.P. to provide $3,800,000 for the development of 225 rental homes for extremely low- very low- and low-income individuals and families. The project is located in the City of San Mateo. The loan has a term of 55 years from and bears an interest rate of 3% commencing in March 2022. 3,800,000 3,800,000 In February 2024, HEART signed a Deveopment Loan Agreement with CRP Affordable Housing and Community Development CA LLC. to provide $3,000,000 for the development of 65 rental homes for low-income persons and households. The project is located in the City of San Mateo. The loan has a term of 55 years from and bears an interest rate of 5%. 3,000,000 -
In July 2024, HEART signed a Deveopment Loan Agreement with HEART-SV, a California Joint Powers Authority. to provide $450,000 for the development of 8 rental homes for low-income persons and households. The project is located in the City of San Mateo. The loan has a term of 55 years from and bears an interest rate of 3%. 50,000 - Total Loans Receivable $ 12,834,489 $ 9,809,489
26 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST OF SAN MATEO COUNTY

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2024 AND 2023

4. ACCOUNTS PAYABLE
Accounts payable comprises of the following:

5. NON-CURRENT LIABILITIES
The following is summary of non-current liability activity of HEART:

San Mateo County: Measure-K loan
On August 1, 2017 HEART entered into a loan agreement with the County of San Mateo for an amount of $5,000,000 with a maturity date of July 31, 2024. Interest rate will be paid annually based on the amount of interest that the loan would have earned had it been invested in the San Mateo County Pooled Investment rate starting twelve months from the date of the initial disbursement. The proceeds of the loan will to be used to make predevelopment, acquisition, construction and bridge loans that are consistent with the terms of HEART’s Quick Start Loan Program. As of June 30, 2024 HEART drawn an amount of $5,000,000 from the total loan agreement of $5,000,000. 2024 2023
Payable for contractor service $ 12,986 $ 4,598
Accrued payroll 65,924 57,792
Total Accounts payable $ 78,910 $ 62,390
Balance at Balance at
July 1, 2023 Additions Deletions June 30, 2024
San Mateo County:Measure-K $ 4,620,000 $ 380,000 $ - $ 5,000,000 Total $ 4,620,000 $ 380,000 $ - $ 5,000,000
Balance at Balance at
July 1, 2022 Additions Deletions June 30, 2023
San Mateo County:Measure-K $ 4,620,000 $ - $ - $ 4,620,000 Total $ 4,620,000 $ - $ - $ 4,620,000
27 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST OF SAN MATEO COUNTY

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2024 AND 2023

6. REVENUES
(a) Operating Grants and Contributions
Operating grants and contributions consist of the following:

Member Agencies Dues
Member Agencies are billed annually for dues to cover administrative expenses.

Donors
Other operating grants and contributions include contributions from private donors. (b) Charges for Services
Charges for services are loan processing fees collected from home buyers upon close of escrow on each home loan.
(c) Investment Earnings
Investment earnings reported in the government fund statements of revenues, expenditures, and changes in fund balance comprise of quarterly interest received from the County Treasurer on investments made by HEART in the County Pool and interest collected from developers on cumulative interest receivable accrued. Interest is recorded in the year it is earned and is available to pay current liabilities.

Investment earnings reported in the government-wide statements of activities includes earnings from the County investments noted above plus interest earned in the current year on loans made to developers.

7. FUND BALANCES / NET POSITION
As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which HEART is bound to honor constraints on the specific purpose for which amount in the fund can be spent. As of June 30, 2024 and 2023, fund balance for the governmental fund consists of the following classifications respectively:
(a) Nonspendable Fund Balance – includes amounts that cannot be spent because they are not in spendable form, such as prepaid items and loans receivable. (b) Restricted Fund Balance – includes amounts that can be spent only for specific purposes stipulated by external resources providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers. (c) Unassigned Fund Balance – is the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications.

In circumstances when an expenditure is made for a purpose for which amounts are available in multiple fund balance classifications, fund balance is depleted in the order of restricted and then unassigned. 28 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST OF SAN MATEO COUNTY

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2024 AND 2023

7. FUND BALANCES / NET POSITION (CONTINUED)
At fiscal year-end, fund balance reported on the balance sheets on page 17 includes:

The amount shown as restricted above is also reported as restricted net position on the statement of net positions on page 13.

8. RISK MANAGEMENT
HEART is exposed to various risks of losses related to assets having a current or future benefit to HEART.

HEART has insurance coverage provided by the Hartford. In addition, HEART has special excess liability insurance coverage provided as part of the County's insurance coverage. The existing insurance policies are current as of the issuance of this report. Under an agreement with the County, the Department of Housing (DOH) of San Mateo County provides fiscal and program services to HEART. Agents of the DOH are covered by the County’s insurance provider. The County Counsel provides legal representation for any claims or litigation of HEART under a contract. For the years ended June 30, 2024 and 2023, the annual amount contracted with County Counsel for legal representation was $1,069 and $9,773 respectively.
2024 2023
Nonspendable $ 12,834,489 $ 9,809,489
Restricted:

Home Buyer Assistance Loan Program - pledge account
see Note 2(a) 421,359 414,960
Unassigned 9,705,990 10,230,419
Total Fund Balance $ 22,961,838 $ 20,454,868
29 ATTACHMENT 5

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30 ATTACHMENT 5

REQUIRED SUPPLEMENTARY INFORMATION
31 ATTACHMENT 5

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32 ATTACHMENT 5

Actual
Amount Variance with
Budgeted Budgeted Budgetary Final Budget
Amount Amount Basis Positive
Original Final (Note 1) (Negative)
Revenues
Member Agency contributions $ 236,286 $ 236,286 $ 236,363 $ 77 Other contributions 355,000 355,000 2,081,483 1,726,483 Investment earnings 157,166 157,166 386,061 228,895
Charges for services and other 587,801 587,801 262,225 (325,576) administrative support 1,336,253 1,336,253 2,966,132 1,629,879 Expenditures
General management and
administrative support 1,274,392 1,274,392 933,913 340,479 Legal services 72,000 72,000 1,069 70,931
Debt services
Interest and fiscal charges 100,000 100,000 92,758 7,242 Contingency - - 201 (201)
Total Expenditures 1,446,392 1,446,392 1,027,941 418,451 Net Change in Fund Balance $ (110,139) $ (110,139) 2,318,191 2,428,330 Fund Balance - beginning 20,695,673
Fund Balance - ending $ 23,013,864
Housing Endowment and Regional Trust of San Mateo County Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2024
33 ATTACHMENT 5

HOUSING ENDOWMENT AND REGIONAL TRUST OF SAN MATEO COUNTY

NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2024 and 2023

1. BUDGETS, BUDGETARY PROCESS, AND ENCUMBRANCES
HEART uses two funding sources to manage operations: Administrative Funds and Program Funds. The Board adopts an annual operating budget, which can be amended by the Board throughout the year. Actual revenues and expenditures presented reflect activity in both funds during the year. As discussed in Note 1(d) of the notes to the basic financial statements, the basis used to prepare the budget is the same as the basis used to reflect actual revenues and expenditures, except for unrealized gains and losses under GASB 31. The financial statements record unrealized gains and losses as required by Generally Accepted Accounting Principles (GAAP). Adjustments were made to certain budgeted accounts to reflect changes made in financial statement presentation.

HEART uses an encumbrance system to assist in controlling expenditures. Purchase orders, contracts, and other commitments for the expenditures of monies are recorded under this system in order to reserve applicable appropriations. Any encumbrances outstanding at year-end are recorded as reservations of fund balance as they do not constitute expenditures or liabilities.

The actual net change in fund balance under the budgetary basis on page 33 is reconciled to the change in fund balance under GAAP on page 18 as follows:

Explanation of difference between budgetary basis and GAAP basis:

FY 23-24
Ca Net Change in Fund Balance - budgetary basis $ 2,318,191 sh on hand - Net unrealized loss on cash in County Investment Pool
under GASB 31 188,779
Change in Fund Balance - GAAP basis $ 2,506,970
Fund Balance - budgetary basis $ 23,013,864
Unrealized loss on cash in County Investment Pool
under GASB 31 as of June 30, 2024 (52,026)
Fund Balance - GAAP basis $ 22,961,838
34 ATTACHMENT 5

SUPPLEMENTARY INFORMATION
35 ATTACHMENT 5

This page intentionally left blank
36 ATTACHMENT 5

Program Administrative
Funds Funds Total
Revenues
Member agency contributions $ - $ 236,363 $ 236,363
Donor contributions 1,938,375 143,108 2,081,483
Investment earnings - 386,061 386,061
Loan origination fees 217,156 45,069 262,225
Total Revenues 2,155,531 810,601 2,966,132
Expenditures
General management and
administrative support 768,541 165,372 933,913
Legal services 553 516 1,069
Debt services
Interest and fiscal charges 92,758 - 92,758
Total Expenditures 861,852 166,089 1,027,941
Excess (Deficiency) of Revenues Over
(Under) Expenditures 1,293,679 644,512 1,938,191
Other Financing Sources (Uses)
Loan proceeds:
- San Mateo County Measure K Loan 380,000 - 380,000
Total Other Financing Sources (Uses) 380,000 - 380,000
Net Change in Fund Balance 1,673,679 644,512 2,318,191
Fund Balance - beginning 19,353,909 1,341,764 20,695,673 Fund Balance - ending $ 21,027,588 $ 1,986,276 $ 23,013,864 required by generally accepted accounting principles.

Housing Endowment and Regional Trust of San Mateo County Status of Funds
For the Year Ended June 30, 2024
Notes:
(1) All income received from investment earnings is categorized to Program Funds (2) The above schedule does not include adjustments made for GASB No. 31 as 37 ATTACHMENT 5

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38 ATTACHMENT 5

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Board of Directors
of the Housing Endowment and Regional Trust
of San Mateo County
San Mateo, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and major fund of the Housing Endowment and Regional Trust of San Mateo County (HEART) as of and for the years ended June 30, 2024 and 2023, and the related notes to the financial statements, which collectively comprise HEART’s basic financial statements, and have issued our report thereon dated August 31, 2025.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered HEART’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of HEART’s internal control. Accordingly, we do not express an opinion on the effectiveness of HEART’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. 39 ATTACHMENT 5

To the Board of Directors
of the Housing Endowment and Regional Trust
of San Mateo County
San Mateo, California

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether HEART’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Badawi & Associates, CPAs
Emeryville, California
August 31, 2025
40 ATTACHMENT 5

Property Management Company
HEART-SV has interviewed four (4) qualified property management companies and is still in the process of negotiating a property management agreement for the Project. Although we have not signed an agreement with the following company, we have included their qualifications to ensure Brisbane City Staff of the availability of qualified managers. The property management company is subject to change to a company other than the company listed below.

Prodesse Property Group has been in business for 29 years and currently manages over 200 properties. Prodesse Property Group’s most public affordable management portfolio is in the North Fair Oaks neighborhood, near Redwood City. There they oversee the St. Francis Center’s residential portfolio of smaller 2-20 unit affordable buildings as well as the 64-unit Renalto Court, which was purchased as a community benefit associated with the Malibu Grand Prix redevelopment application.

Prodesse Property Group has experience managing market rate, naturally occurring affordable, and deed restricted housing throughout the peninsula. Their experience with property management and the tenant income verification process is what attracted us to hire them for a property HEART-SV acquired in 2024 in Redwood City.

ATTACHMENT 5

Date Activity Notes
By October 2025 Subcommittee Review and Recommendation
November 1 - December 15, 2025 Due Diligence Period
HEART will expend funds on due
diligence consultants once recommend
by City Subcommittee
December 1, 2025 HEART Draft Loan Documents completed Available for City review December 1, 2025
Receive Draft Ground Lease and Loan
Documents from City
December 10, 2025 HEART Board loan approval & Project
acquisition by HEART-SV
January 2026 Authority Action
January 28, 2026 City and HEART deposit loan funds into escrow January 30, 2026 Closing
February, 01, 2026 Rehabilitation commences Per property needs assessment direction and weather permitting
Housing Endowment and Regional Trust of San Mateo County Visitacion Gardens
Proposed Schedule
ATTACHMENT 5

Property Inspections
HEART has not completed any due diligence as of this proposal date. HEART will only begin conducting a full due diligence review upon notification from the City that the City Subcommittee is recommending HEART for the Project.

SUPERSEDED. Please see capital needs report provided in separate attachment.

ATTACHMENT 5

14 19,998
17,138
100%
$ 3,452,814
$ 227,436
$ 454,983
$ 4,135,233
$ 207
$ 295,374
41%
59%
Occupancy at Purchase
RDA of the City of Brisbane/Authority Loans
County of San Mateo Loan
8 Visitacion Avenue, Brisbane

PROPERTY SUMMARY
Residential Unit Count
Building Size (SF)
Parcel Size (SF)
HEART Funds
Total Cost
Total Cost (not PP) per SF of buildling
Total Cost per Unit
Loan Term (yrs.)
Est. Interest Rate
Est. Interest-Only Period

AFFORDABILITY
Average BRIDGE AMI level
Average HEART AMI level

LOAN DETAILS
Bank:

Amortization (yrs.)
Interest-Only Period (yrs.)
Min. Debt Cov. Ratio
Max. Loan-to-Value
Proforma Loan-to-Value
ATTACHMENT 5

8 Visitacion Avenue, Brisbane
Income Limits YR: 2025
CA Annual Rent Cap: 5% + CPI or 10%, whichever is less
Assumptions: 30%
2025 Utility Allowance Schedule/mo. - San Mateo County
Studio 1BR 2BR 3BR
1P 1.5P 3P 4.5P
Natural Gas $ 26 $ 32 $ 37 $ 41
Electric $ - $ - $ - $ -
Natural Gas $ - $ - $ - $ -
Electric $ 11 $ 13 $ 18 $ 24
Other Electric (incl. climate credit) $ 34 $ 42 $ 62 $ 85 Air Conditioning $ - $ - $ - $ -
Natural Gas $ - $ - $ - $ -
Electric $ - $ - $ - $ -
Water $ - $ - $ - $ -
Trash $ - $ - $ - $ -
Range/Microwave $ 11 $ 11 $ 11 $ 11
Refrigerator $ 12 $ 12 $ 12 $ 12
Total $ 94 $ 110 $ 140 $ 173
2025 HCD Income Limits
Extremely Low-Income (30%) Very Low-Income (50%) Low-Income (60%) 30% of Max. 30% of Max. 30% of Max.

Household Annual Annual Monthly Household Annual Annual Monthly Household Annual Annual Monthly Size Income Income Rent Size Income Income Rent Size Income Income Rent 1 $ 41,150 $ 12,345 $ 1,029 1 $ 68,550 $ 20,565 $ 1,714 1 $ 82,260 $ 24,678 $ 2,057 2 $ 47,000 $ 14,100 $ 1,175 2 $ 78,350 $ 23,505 $ 1,959 2 $ 94,020 $ 28,206 $ 2,351 3 $ 52,900 $ 15,870 $ 1,323 3 $ 88,150 $ 26,445 $ 2,204 3 $105,780 $ 31,734 $ 2,645 4 $ 58,750 $ 17,625 $ 1,469 4 $ 97,900 $ 29,370 $ 2,448 4 $117,480 $ 35,244 $ 2,937 5 $ 63,450 $ 19,035 $ 1,586 5 $105,750 $ 31,725 $ 2,644 5 $126,900 $ 38,070 $ 3,173 6 $ 68,150 $ 20,445 $ 1,704 6 $113,600 $ 34,080 $ 2,840 6 $136,320 $ 40,896 $ 3,408 7 $ 72,850 $ 21,855 $ 1,821 7 $121,400 $ 36,420 $ 3,035 7 $145,680 $ 43,704 $ 3,642 8+ $ 77,550 $ 23,265 $ 1,939 8+ $129,250 $ 38,775 $ 3,231 8+ $155,100 $ 46,530 $ 3,878 Low-Income (80%) Median-Income (100%) Moderate-Income (120%) 30% of Max. 30% of Max. 30% of Max.

Household Annual Annual Monthly Household Annual Annual Monthly Household Annual Annual Monthly Size Income Income Rent Size Income Income Rent Size Income Income Rent 1 $ 109,700 $ 32,910 $ 2,743 1 $130,600 $ 39,180 $ 3,265 1 $156,750 $ 47,025 $ 3,919 2 $ 125,350 $ 37,605 $ 3,134 2 $149,300 $ 44,790 $ 3,733 2 $179,100 $ 53,730 $ 4,478 3 $ 141,000 $ 42,300 $ 3,525 3 $167,950 $ 50,385 $ 4,199 3 $201,500 $ 60,450 $ 5,038 4 $ 156,650 $ 46,995 $ 3,916 4 $186,600 $ 55,980 $ 4,665 4 $223,900 $ 67,170 $ 5,598 5 $ 169,200 $ 50,760 $ 4,230 5 $201,550 $ 60,465 $ 5,039 5 $241,800 $ 72,540 $ 6,045 6 $ 181,750 $ 54,525 $ 4,544 6 $216,450 $ 64,935 $ 5,411 6 $259,700 $ 77,910 $ 6,493 7 $ 194,250 $ 58,275 $ 4,856 7 $231,400 $ 69,420 $ 5,785 7 $277,650 $ 83,295 $ 6,941 8+ $ 206,800 $ 62,040 $ 5,170 8+ $246,300 $ 73,890 $ 6,158 8+ $295,550 $ 88,665 $ 7,389 of household income is the maximum monthly housing
payment, including utilities, insurance, taxes, and home Heating
Cooking
Water Heating
ATTACHMENT 5

8 Visitacion Avenue, Brisbane

HCD TCAC H&SC HUD HOME
Max Monthly Rent Max Rent Calculations Max Rent Calculations Max Rent Calculations Annual Income
30% of Annual
Income
Max Monthly
Rent
Annual Income 30% of Annual
Income
Max Monthly
Rent
$ 156,750 $ 47,025 $ 3,919 $ 143,660 $ 43,098 $ 3,592
$ 179,100 $ 53,730.00 $ 4,478 $ 164,230 $ 49,269 $ 4,106 $ 201,500 $ 60,450.00 $ 5,038 $ 184,745 $ 55,424 $ 4,619 Annual Income 30% of Annual
Income
Max Monthly
Rent
Annual Income 30% of Annual
Income
Max Monthly
Rent
Annual Income 30% of Annual
Income
Max Monthly
Rent
$ 130,600 $ 39,180 $ 3,265 $ 135,400 $ 40,620 $ 3,385 $ 130,600 $ 39,180 $ 3,265 $ 149,300 $ 44,790 $ 3,733 $ 154,800 $ 46,440 $ 3,870 $ 149,300 $ 44,790 $ 3,733 $ 167,950 $ 50,385 $ 4,199 $ 174,100 $ 52,230 $ 4,353 $ 167,950 $ 50,385 $ 4,199 Annual Income
30% of Annual
Income
Max Monthly
Rent Annual Income
30% of Annual
Income
Max Monthly
Rent Annual Income
30% of Annual
Income
Max Monthly
Rent
$ 109,700 $ 32,910 $ 2,743 $ 108,320 $ 32,496 $ 2,708 $ 78,360 $ 23,508 $ 1,959 $ 125,350 $ 37,605 $ 3,134 $ 123,840 $ 37,152 $ 3,096 $ 89,580 $ 26,874 $ 2,240 $ 141,000 $ 42,300 $ 3,525 $ 139,280 $ 41,784 $ 3,482 $ 100,770 $ 30,231 $ 2,519 Annual Income 30% of Annual
Income
Max Monthly
Rent
Annual Income 30% of Annual
Income
Max Monthly
Rent
Annual Income 30% of Annual
Income
Max Monthly
Rent
$ 82,260 $ 24,678 $ 2,057 $ 81,240 $ 24,372 $ 2,031 $ 78,360 $ 23,508 $ 1,959 $ 94,020 $ 28,206 $ 2,351 $ 92,880 $ 27,864 $ 2,322 $ 89,580 $ 26,874 $ 2,240 $ 105,780 $ 31,734 $ 2,645 $ 104,460 $ 31,338 $ 2,612 $ 100,770 $ 30,231 $ 2,519 Annual Income
30% of Annual
Income
Max Monthly
Rent Annual Income
30% of Annual
Income
Max Monthly
Rent Annual Income
30% of Annual
Income
Max Monthly
Rent
$ 68,550 $ 20,565 $ 1,714 $ 67,700 $ 20,310 $ 1,693 $ 65,300 $ 19,590 $ 1,633 $ 78,350 $ 23,505 $ 1,959 $ 77,400 $ 23,220 $ 1,935 $ 74,650 $ 22,395 $ 1,866 $ 88,150 $ 26,445 $ 2,204 $ 87,050 $ 26,115 $ 2,176 $ 83,975 $ 25,193 $ 2,099 Annual Income
30% of Annual
Income
Max Monthly
Rent Annual Income
30% of Annual
Income
Max Monthly
Rent Annual Income
30% of Annual
Income
Max Monthly
Rent
$ 41,150 $ 12,345 $ 1,029 $ 40,620 $ 12,186 $ 1,016 $ 39,180 $ 11,754 $ 980 $ 47,000 $ 14,100 $ 1,175 $ 46,440 $ 13,932 $ 1,161 $ 44,790 $ 13,437 $ 1,120 $ 52,900 $ 15,870 $ 1,323 $ 52,230 $ 15,669 $ 1,306 $ 50,385 $ 15,116 $ 1,260 Max Monthly Rent based on Household Size Max Monthly Rent based on Household Size Max Monthly Rent based on Household Size Max Monthly Rent based on Household Size 0BR 1BR 2BR 0BR 1BR 2BR 0BR 1BR 2BR 0BR 1BR 2BR
1 Person 1.5 Persons 3 Persons 1 Person 1.5 Persons 3 Persons 1 Person 2 persons 3 Persons Moderate 120% $ 3,919 $ 4,198 $ 5,038
Median 100% $ 3,265 $ 3,499 $ 4,199 Median 100% $ 3,385 $ 3,628 $ 4,353 Moderate 120% $ 3,592 $ 4,106 $ 4,619 Low 80% $ 2,743 $ 2,938 $ 3,525 Low 80% $ 2,708 $ 2,902 $ 3,482 Low 80% $ 1,959 $ 2,240 $ 2,519 Low 60% $ 2,057 $ 2,204 $ 2,645 Low 60% $ 2,031 $ 2,177 $ 2,612 Low 60% $ 1,959 $ 2,240 $ 2,519 High HOME Limit $ 2,208 $ 2,366 $ 2,842 VLI 50% $ 1,714 $ 1,959 $ 2,204 VLI 50% $ 1,693 $ 1,814 $ 2,176 VLI 50% $ 1,633 $ 1,866 $ 2,099 Low HOME Limit $ 1,713 $ 1,836 $ 2,203 ELI 30% $ 1,029 $ 1,102 $ 1,323 ELI 30% $ 1,016 $ 1,088 $ 1,306 ELI 30% $ 980 $ 1,120 $ 1,260 Net Max Monthly Rent based on Household Size & Utility Allowance Net Max Monthly Rent based on Household Size Net Max Monthly Rent based on Household Size Net Max Monthly Rent based on Household Size 0BR Utility Allowance $ 94 0BR Utility Allowance $ 94 0BR Utility Allowance $ 94 0BR Utility Allowance $ 94 1BR Utility Allowance $ 110 1BR Utility Allowance $ 110 1BR Utility Allowance $ 110 1BR Utility Allowance $ 110 2BR Utility Allowance $ 140 2BR Utility Allowance $ 140 2BR Utility Allowance $ 140 2BR Utility Allowance $ 140 0BR 1BR 2BR 0BR 1BR 2BR 0 BR 1BR 2BR 0 BR 1BR 2BR
1 Person 1.5 Persons 3 Persons 1 Person 1.5 Persons 3 Persons 1 Person 2 persons 3 Persons Moderate 120% $ 3,825 $ 4,088 $ 4,898
Median 100% $ 3,171 $ 3,389 $ 4,059 Median 100% $ 3,291 $ 3,518 $ 4,213 Moderate 120% $ 3,498 $ 3,996 $ 4,479 Low 80% $ 2,649 $ 2,828 $ 3,385 Low 80% $ 2,614 $ 2,792 $ 3,342 Low 80% $ 1,865 $ 2,130 $ 2,379 Low 60% $ 1,963 $ 2,094 $ 2,505 Low 60% $ 1,937 $ 2,067 $ 2,472 Low 60% $ 1,865 $ 2,130 $ 2,379 High HOME Limit $ 2,114 $ 2,256 $ 2,702 VLI 50% $ 1,620 $ 1,849 $ 2,064 VLI 50% $ 1,599 $ 1,704 $ 2,036 VLI 50% $ 1,539 $ 1,756 $ 1,959 Low HOME Limit $ 1,619 $ 1,726 $ 2,063 ELI 30% $ 935 $ 992 $ 1,183 ELI 30% $ 922 $ 978 $ 1,166 ELI 30% $ 886 $ 1,010 $ 1,120 52 26
52000
44200
Moderate-Income 120%
3 Household size
1 2
Household size
1 2
3 Household size
Median-Income 100%
3 Median-Income 100%
2 3
Household size
1 3
Household size
3 Household size
Household size
1 2
3 Low-Income 60%
Very Low-Income 50%
Extremely Low-Income 30%
1 Very Low-Income 50%
Extremely Low-Income 30%
3 1
2 3
Household size
1 2
Household size
1 2
1 2
2 3
2 3
Household size
1 1
2 3
Household size
1 2
3 Household size
1 Household size
1 2
Low-Income 80%
Low-Income 60%
Low-Income 80%
2 3
Median-Income 100%
Low-Income 80%
Low-Income 60%
Very Low-Income 50%
Extremely Low-Income 30%
Household size
1 2
3 Household size
1 2
3 Household size
Area Median Income
Area Median Income Area Median Income Area Median Income Area Median Income
Area Median Income
Area Median Income Area Median Income
Moderate-Income 120%
Household size
1 2
3 ATTACHMENT 5

8 Visitacion Avenue, Brisbane
$ 4,075,233 Loan Int. Rate 3%
Sources and Uses Daily Int. Rate 0.0082191781%
Acquisition/Rehab Sources Acquisition Perm Per Unit Term (yr.) Rate LTV Lien Pos. Notes RDA of the City of Brisbane/Authority Loan 1 City of Brisbane/Housing Authority Loan $ 3,452,814 $ 246,630 55 3% 104.9% 1 Existing City of Brisbane/Housing Authority Loan $ 3,062,564 $ 218,755 n/a n/a 93.1% n/a Outstanding Debt as of Principal Remaining Loan Amt Accrued Interest Date of Calc. Days Accrued Interest Outstanding Debt New City Loan $ 390,250 $ 27,875 n/a n/a 11.9% n/a
County of San Mateo Loan $ 227,436 $ 16,245 55 3% 6.9% 2 7/1/2025 $ 1,000,000 $ 899,873 $ 600,700 4/16/2026 289 $ 21,375.07 $ 1,521,948 HEART Loan $ 394,983 $ 28,213 15 3% 12.0% 3 $ 3,290,000 Deferred developer's Fee - HEART SV $ 60,000 $ 4,286 n/a 3% 1.8% n/a RDA of the City of Brisbane/Authority Loan 2 Outstanding Debt as of Principal Remaining Loan Amt Accrued Interest Date of Calc. Days Accrued Interest Outstanding Debt % of Oustanding Debt to Total Debt Proposed Loan Value Dif. btwn Oustanding Debt & Proposed Loan Value TOTAL $ 4,135,233 $ 295,374 7/1/2025 $ 1,500,000 $ 1,436,214 $ 1,000,402 4/16/2026 289 $ 34,115.00 $ 2,470,731 DSCR: #DIV/0!
Uses Total Cost Per Unit Rate Notes County of San Mateo (HOME funds) Acquisition Outstanding Debt as of Principal Remaining Loan Amt Accrued Interest Date of Calc. Days Accrued Interest Outstanding Debt Property Acquisition (PURCHASE PRICE) $ 3,290,000 $ 235,000 7/1/2025 $ 175,000 $ 175,000 $ 117,352 4/16/2026 289 $ 4,157 $ 296,509 Closing Costs - Escrow $ 14,275 $ 1,020 0.3% Old Title Republic Relocation/Temp. Relocation $ - $ -
Total Acquisition $ 3,304,275 $ 236,020 Total Debt
$ 4,289,188
Construction
Rehabilitation Costs $ 434,063 $ 31,005 Year 1 - 5 CNA Jan 2026 Rehab overhead & profit $ - $ - 15.0% COST SUMMARY Total Costs $/unit Rehabilitation Contingency $ 86,813 $ 6,201 20.0% 20% hard cost contigency Brisbane requirement Total Acquisition $ 3,304,275 $ 236,020 Total Construction $ 520,876 $ 37,205 TOTAL REHABILITATION $ 531,293 $ 37,950 TOTAL OTHER SOFT COSTS $ 23,757 $ 1,697
SOFT COSTS TOTAL FINANCING $ 8,199 $ 586
Architecture & Design TOTAL DEVELOPER FEE $ 120,000 $ 8,571 Architect $ - $ - TOTAL RESERVES $ 147,709 $ 10,551
Third-party Design Consultants $ - $ - $ 4,135,233 $ 295,374 Total Architect & Design $ - $ -
Eng. & Env. Studies
Engineering $ - $ -
Survey $ - $ -
Property Needs Assessment & Walkways Inspection $ 4,100 $ 293 Association Reserves Seismic Study $ - $ - Jaime Neilson Structural Eng.

Other Environmental Consultants $ 2,050 $ 146 CRETelligent Phase I Report Est. Closing Costs Based on Stambaugh Total Eng. & Env. Studies $ 6,150 $ 439 $ 3,000 County
$ 3,000 City
Other Soft Development Costs $ 1,800 HEART
Appraisal $ 4,500 $ 321 Bowery $ 3,800 Owner
Construction Management Fee $ - $ - 5.0% % of hard cost $ 2,375 Escrow Fee Permits $ 10,418 $ 744 2.0% % of hard cost $ 300 Mobile Signing Relocation Consultant $ - $ - $ 14,275
Utilities Fees $ - $ -
Insurance $ - $ -
Marketing $ - $ -
Property Taxes $ - $ -
Total Other Soft Development Costs $ 14,918 $ 1,066
Legal Costs
Borrower/Project Legal Costs $ 10,000 $ 714
Other Legal Costs $ - $ -
$ - $ -
Total Legal Costs $ 10,000 $ 714
Soft Cost Contingency $ 3,107 $ 222 10% 10% soft cost contigency Brisbane requirement TOTAL SOFT COSTS $ 34,174 $ 2,441

FINANCING COSTS
Conv. Loan Fee $ - $ -
Prepaid Interest Bank Loan $ - $ -
LHTF Loan Fee $ - $ - 1.5%
HEART - Trust Funds Loan Fee $ 5,925 $ 423 1.5%
County Loan Fee $ 2,274 $ 162 1.0%
Local City Loan Fee $ - $ -
Total Financing Costs $ 8,199 $ 586

DEVELOPER COSTS
Developer Fee $ 120,000 $ 8,571 2.50% Greater of 2.5% or $120,000 TOTAL DEVELOPER FEE $ 120,000 $ 8,571

RESERVES
Vacancy Reserve $ - $ - 0.0% Only fund if there is a vacancy at time of purchase. If vacancy, use 3.5% of Eff. Gross Income Operating Reserve $ 47,709 $ 3,408 3 mo. expenses + reserves + debt obligation Replacement Reserve $ 100,000 $ 7,143
Debt Service Coverage Reserve $ - $ -
TOTAL RESERVES $ 147,709 $ 10,551
TOTAL DEVELOPMENT COST $ 4,135,233 $ 295,374
Sources - Uses $0
Year 30 reserve balance $ 220,958
$ 69,073
Appraised Value
County of San
Mateo
93%
7%
$ 3,062,564
$ 227,436
RDA of the City
of Brisbane/
Authority
$ 930,115
ATTACHMENT 5

8 Visitacion Avenue, Brisbane
County County Current Utility Current Current Current Section 8 Current Year Year Year Year Year Year Year Year Year Year BHC Low High City Designated Gross Rent Allowance Paid Rent Paid Rent Tenant Rent Voucher Lease Start Rent Paid 1 2 3 4 5 6 7 8 9 10 Unit # Bed Bath HOME HOME AMI% $/mo. AMI% HCD $/mo. Income HH Size AMI% HCD Unit # 2026 Annually 6/1/2026 6/1/2027 6/1/2028 6/1/2029 6/1/2030 6/1/2031 6/1/2032 6/1/2033 6/1/2034 6/1/2035 V1 1 1 80% 120% 80% $ 1,371 87 $ 1,284 42% $ 1,284 $ 33,044 1 25% V1 2017 9 $ 15,408 $ 15,408 $ 15,870 $ 16,346 $ 16,837 $ 28,761 $ 29,624 $ 30,513 $ 31,428 $ 32,371 $ 33,342 V10 1 1 80% 30% 30% $ 665 87 $ 578 20% $ 578 $ 17,697 1 14% V10 2003 23 $ 6,936 $ 6,936 $ 7,144 $ 12,855 $ 13,241 $ 13,638 $ 14,047 $ 14,468 $ 14,902 $ 15,349 $ 15,810 V2 1 1 80% 80% 50% $ 1,187 87 $ 1,100 36% $ 1,100 $ 25,094 1 19% V2 2019 7 $ 13,200 $ 13,200 $ 13,596 $ 14,004 $ 14,424 $ 14,857 $ 15,302 $ 25,165 $ 25,920 $ 26,697 $ 27,498 V4 1 1 80% 60% 80% 50% $ 1,187 87 $ 1,100 36% $ 1,100 $ 27,355 1 21% V4 2020 6 $ 13,200 $ 13,200 $ 13,596 $ 14,004 $ 14,424 $ 14,857 $ 15,302 $ 15,761 $ 16,234 $ 32,371 $ 33,342 V5 1 1 80% 120% 80% $ 1,371 87 $ 1,284 42% $ 1,284 $ 30,301 1 23% V5 2020 6 $ 15,408 $ 15,408 $ 15,870 $ 16,346 $ 16,837 $ 17,342 $ 17,862 $ 18,398 $ 18,950 $ 19,518 $ 33,342 V6 1 1 80% 50% 30% 30% $ 1,103 87 $ 1,016 34% $ 1,016 $ - V6 $ 12,192 $ 12,192 $ 12,558 $ 12,934 $ 13,323 $ 13,722 $ 14,134 $ 14,558 $ 14,995 $ 15,444 $ 33,342 V8 1 1 80% 60% 40% 40% $ 926 87 $ 839 28% $ 839 $ 45,793 1 35% V8 2000 26 $ 10,068 $ 10,068 $ 10,370 $ 27,110 $ 27,924 $ 28,761 $ 29,624 $ 30,513 $ 31,428 $ 32,371 $ 33,342 V9 1 1 80% 120% 60% $ 1,283 87 $ 1,196 39% $ 1,196 $ 16,754 1 13% V9 2021 5 $ 14,352 $ 14,352 $ 14,783 $ 15,226 $ 15,683 $ 16,153 $ 16,638 $ 17,137 $ 17,651 $ 18,181 $ 33,342 I1 2 1 80% 120% 60% $ 2,645 117 $ 2,528 71% $ 509 Voucher $ 24,946 2 17% I1 2016 10 $ 30,336 $ 30,336 $ 31,246 $ 32,183 $ 31,198 $ 32,134 $ 33,098 $ 34,091 $ 35,114 $ 36,168 $ 37,253 I2 2 1 80% 60% 120% 60% $ 1,713 117 $ 1,596 46% $ 1,596 $ 59,206 2 40% I2 2023 3 $ 19,152 $ 19,152 $ 19,727 $ 20,318 $ 20,928 $ 21,556 $ 22,202 $ 22,868 $ 23,555 $ 24,261 $ 37,253 I3 1 1 80% 40% 40% $ 926 87 $ 839 28% $ 839 $ 25,651 1 20% I3 2020 6 $ 10,068 $ 10,068 $ 10,370 $ 10,681 $ 11,002 $ 11,332 $ 11,672 $ 12,022 $ 12,382 $ 12,754 $ 15,810 I4 1 1 80% 60% 120% 50% $ 1,187 87 $ 1,100 36% $ 1,100 $ 22,844 1 17% I4 2019 7 $ 13,200 $ 13,200 $ 13,596 $ 14,004 $ 14,424 $ 14,857 $ 15,302 $ 15,761 $ 14,902 $ 15,349 $ 15,810 I5 1 1 80% 120% 60% $ 2,352 87 $ 2,265 72% $ 621 Voucher $ 42,292 1 32% I5 2023 3 $ 27,180 $ 27,180 $ 27,995 $ 28,835 $ 29,700 $ 30,591 $ 31,509 $ 32,454 $ 33,428 $ 34,431 $ 33,342 I6 1 1 80% 120% 50% $ 1,187 87 $ 1,100 36% $ 1,100 $ 74,155 1 57% I6 2018 8 $ 13,200 $ 13,200 $ 13,596 $ 14,004 $ 14,424 $ 14,857 $ 29,624 $ 30,513 $ 31,428 $ 32,371 $ 33,342 16 14 53% $ 1,273 41% $ 1,012 Awaiting 26% $ 213,900 $ 213,900 $ 220,317 $ 248,852 $ 254,367 $ 273,418 $ 295,942 $ 314,223 $ 322,318 $ 347,637 $ 416,170 Average AMI Average Rent Average AMI updated Average AMI 2 BD income
verifications
Deed Restrictions per Existing Agreements
AMI City County Rent Growth 0.03 Current Current Year Year Year Year Year Year Year Year Year Year 30% 2 AMI Income Target Rent Rent Paid Rent Paid 1 2 3 4 5 6 7 8 9 10 40% 2 30% 3 3 3 Unit # Monthly Annually 6/1/2026 6/1/2027 6/1/2028 6/1/2029 6/1/2030 6/1/2031 6/1/2032 6/1/2033 6/1/2034 6/1/2035 50% 0 1 40% 0 0 V1 80% $ 1,284 $ 15,408 $ 15,408 $ 15,870 $ 16,346 $ 16,837 $ 17,342 $ 17,862 $ 18,398 $ 18,950 $ 19,518 $ 20,104 60% 0 4 50% 1 1 V10 30% $ 578 $ 6,936 $ 6,936 $ 7,144 $ 7,358 $ 7,579 $ 7,807 $ 8,041 $ 8,282 $ 8,530 $ 8,786 $ 9,050 80% 2 60% 6 6 1 V2 50% $ 1,100 $ 13,200 $ 13,200 $ 13,596 $ 14,004 $ 14,424 $ 14,857 $ 15,302 $ 15,761 $ 16,234 $ 16,721 $ 17,223 120% 8 80% 0 4 1 V4 50% $ 1,100 $ 13,200 $ 13,200 $ 13,596 $ 14,004 $ 14,424 $ 14,857 $ 15,302 $ 15,761 $ 16,234 $ 16,721 $ 17,223 Total 14 5 120% 4 0 V5 80% $ 1,284 $ 15,408 $ 15,408 $ 15,870 $ 16,346 $ 16,837 $ 17,342 $ 17,862 $ 18,398 $ 18,950 $ 19,518 $ 20,104 Total 14 14 5 V6 30% $ 1,016 $ 12,192 $ 12,192 $ 12,558 $ 12,934 $ 13,323 $ 13,722 $ 14,134 $ 14,558 $ 14,995 $ 15,444 $ 15,908 V8 40% $ 839 $ 10,068 $ 10,068 $ 10,370 $ 10,681 $ 11,002 $ 11,332 $ 11,672 $ 12,022 $ 12,382 $ 12,754 $ 13,136 V9 60% $ 1,196 $ 14,352 $ 14,352 $ 14,783 $ 15,226 $ 15,683 $ 16,153 $ 16,638 $ 17,137 $ 17,651 $ 18,181 $ 18,726 I1 60% $ 2,528 $ 30,336 $ 30,336 $ 31,246 $ 32,183 $ 33,149 $ 34,143 $ 35,168 $ 36,223 $ 37,309 $ 38,429 $ 39,582 Current Current I2 60% $ 1,596 $ 19,152 $ 19,152 $ 19,727 $ 20,318 $ 20,928 $ 21,556 $ 22,202 $ 22,868 $ 23,555 $ 24,261 $ 24,989 Tenant Rent Section 8 Income I3 40% $ 839 $ 10,068 $ 10,068 $ 10,370 $ 10,681 $ 11,002 $ 11,332 $ 11,672 $ 12,022 $ 12,382 $ 12,754 $ 13,136 Unit # AMI% AMI% Voucher Income Rent Income Rent Income Rent Unit Deed Restriction Target Rent Limit I4 50% $ 1,100 $ 13,200 $ 13,200 $ 13,596 $ 14,004 $ 14,424 $ 14,857 $ 15,302 $ 15,761 $ 16,234 $ 16,721 $ 17,223 V1 25% 42% 80% 60% 120% 110% V1 60% 60% H&SC I5 60% $ 2,265 $ 27,180 $ 27,180 $ 27,995 $ 28,835 $ 29,700 $ 30,591 $ 31,509 $ 32,454 $ 33,428 $ 34,431 $ 35,464 V10 14% 20% 80% 60% 50% 50% 30% 50% V10 30% 30% H&SC I6 50% $ 1,100 $ 13,200 $ 13,200 $ 13,596 $ 14,004 $ 14,424 $ 14,857 $ 15,302 $ 15,761 $ 16,234 $ 16,721 $ 17,223 V2 19% 36% 80% 60% 60% 60% 40% 50% V2 50% 50% H&SC $ 17,825 $ 213,900 $ 213,900 $ 220,317 $ 226,927 $ 233,734 $ 240,746 $ 247,969 $ 255,408 $ 263,070 $ 270,962 $ 279,091 V4 21% 36% 80% 60% 120% 110% V4 60% 60% H&SC
V5 23% 42% 80% 60% 120% 110% V5 120% 80% H&SC
V6 0% 34% 80% 60% 120% 110% V6 60% 60% H&SC Rent Growth 0.03 Current Current Year Year Year Year Year Year Year Year Year Year V8 35% 28% 80% 60% 120% 110% V8 120% 80% H&SC Potential Rent Potential Rent 1 2 3 4 5 6 7 8 9 10 V9 13% 39% 80% 60% 120% 110% V9 60% 60% H&SC Unit # Monthly Annually 6/1/2026 6/1/2027 6/1/2028 6/1/2029 6/1/2030 6/1/2031 6/1/2032 6/1/2033 6/1/2034 6/1/2035 I1 17% 71% Voucher 80% 60% 60% 60% 80% 60% I1 60% 60% H&SC V1 60% $ 2,130 $ 25,554 $ 25,554 $ 26,321 $ 27,110 $ 27,924 $ 28,761 $ 29,624 $ 30,513 $ 31,428 $ 32,371 $ 33,342 I2 40% 46% 80% 60% 120% 110% I2 120% 80% H&SC V10 30% $ 1,010 $ 12,117 $ 12,117 $ 12,481 $ 12,855 $ 13,241 $ 13,638 $ 14,047 $ 14,468 $ 14,902 $ 15,349 $ 15,810 I3 20% 28% 80% 60% 60% 60% 30% 50% I3 30% 30% H&SC V2 50% $ 1,756 $ 21,075 $ 21,075 $ 21,707 $ 22,358 $ 23,029 $ 23,720 $ 24,432 $ 25,165 $ 25,920 $ 26,697 $ 27,498 I4 17% 36% 80% 60% 60% 60% 40% 50% I4 30% 30% H&SC V4 60% $ 2,130 $ 25,554 $ 25,554 $ 26,321 $ 27,110 $ 27,924 $ 28,761 $ 29,624 $ 30,513 $ 31,428 $ 32,371 $ 33,342 I5 32% 72% Voucher 80% 60% 80% 60% I5 60% 60% H&SC V5 80%* $ 2,130 $ 25,554 $ 25,554 $ 26,321 $ 27,110 $ 27,924 $ 28,761 $ 29,624 $ 30,513 $ 31,428 $ 32,371 $ 33,342 I6 57% 36% 80% 60% 120% 110% I6 120% 80% H&SC V6 60% $ 2,130 $ 25,554 $ 25,554 $ 26,321 $ 27,110 $ 27,924 $ 28,761 $ 29,624 $ 30,513 $ 31,428 $ 32,371 $ 33,342 59% V8 80%* $ 2,130 $ 25,554 $ 25,554 $ 26,321 $ 27,110 $ 27,924 $ 28,761 $ 29,624 $ 30,513 $ 31,428 $ 32,371 $ 33,342 V9 60% $ 2,130 $ 25,554 $ 25,554 $ 26,321 $ 27,110 $ 27,924 $ 28,761 $ 29,624 $ 30,513 $ 31,428 $ 32,371 $ 33,342 I1 60% $ 2,379 $ 28,551 $ 28,551 $ 29,408 $ 30,290 $ 31,198 $ 32,134 $ 33,098 $ 34,091 $ 35,114 $ 36,168 $ 37,253 I2 80%* $ 2,379 $ 28,551 $ 28,551 $ 29,408 $ 30,290 $ 31,198 $ 32,134 $ 33,098 $ 34,091 $ 35,114 $ 36,168 $ 37,253 I3 30% $ 1,010 $ 12,117 $ 12,117 $ 12,481 $ 12,855 $ 13,241 $ 13,638 $ 14,047 $ 14,468 $ 14,902 $ 15,349 $ 15,810 I4 30% $ 1,010 $ 12,117 $ 12,117 $ 12,481 $ 12,855 $ 13,241 $ 13,638 $ 14,047 $ 14,468 $ 14,902 $ 15,349 $ 15,810 I5 60% $ 2,130 $ 25,554 $ 25,554 $ 26,321 $ 27,110 $ 27,924 $ 28,761 $ 29,624 $ 30,513 $ 31,428 $ 32,371 $ 33,342 I6 80%* $ 2,130 $ 25,554 $ 25,554 $ 26,321 $ 27,110 $ 27,924 $ 28,761 $ 29,624 $ 30,513 $ 31,428 $ 32,371 $ 33,342 $ 26,580 $ 318,960 $ 318,960 $ 328,529 $ 338,385 $ 348,536 $ 358,992 $ 369,762 $ 380,855 $ 392,281 $ 404,049 $ 416,170 Loss to Affordable Potential $ 105,060 $ 108,212 $ 89,533 $ 94,169 $ 85,575 $ 73,820 $ 66,632 $ 69,963 $ 56,412 $ - 30% and 40%
income units
at 50%; and
120% income
units at 110%
Occupancy since
move-in
Average Tenant
Rent
BRIDGE Rent Roll: AS-IS Rent Restrictions
Current
Tenant
BRIDGE Rent Roll: AS-IS Rents & Tenancy 10 Years: HEART Program Rents Notes
H&S
50079.5
says "lower
income"
means
Lower as
per Section
8 Senior Household means: at least 1
resident is 62 years or older, and all
other residents are either: (a) at least
45 years old, or (b) provide primary
physical or economic suppport to a
resident who is at least 62
Current Occupany
BHC
H&SC
Deed Restrictions per Existing Agreeements
If 30% AMI become over 30%
AMI, then rent is 40%;
If 40% AMI becomes over 40%,
then rent is lessor of 50% of
gross income or moderate
income level
If 120% units become over
110% AMI, then rent is 30% of
gross income. If tenant over
120% AMI, then market rent
4 units at
HOME or
120% of Very
Low;
1 unit at
Very Low
4 units at High
HOME or SMC
HOME;
1 unit at Low
HOME or SMC
Very Low
Definition
Low, or
Lower as per
H&S
50079.5
30% of 60%
AMI Income
HOME
*For
modeling
purposes,
HEART is
running H&SC
80% at 60%
City Deed Restrictions
Proposed Deed Restrictions
County Deed
Restrictions
60%: H&SC rent is lower than High HOME rent
County City
HEART Designations
Current Rent $/year
HEART Program Rent $/year
Current
Target Rent
H&SC
2 at 30%;
2 at 40%;
2 at 80%; and
rest (8) at 120%
ATTACHMENT 5

8 Visitacion Avenue, Brisbane
Current Rents Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Unit # 6/1/2026 7/1/2026 8/1/2026 9/1/2026 10/1/2026 11/1/2026 12/1/2026 1/1/2027 2/1/2027 3/1/2027 4/1/2027 5/1/2027 Y1 Total V1 $ 1,284 $ 1,284 $ 1,284 $ 1,284 $ 1,284 $ 1,284 $ 1,284 $ 1,284 $ 1,284 $ 1,284 $ 1,284 $ 1,284 $ 15,408 V10 $ 578 $ 578 $ 578 $ 578 $ 578 $ 578 $ 578 $ 578 $ 578 $ 578 $ 578 $ 578 $ 6,936 V2 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 13,200 V4 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 13,200 V5 $ 1,284 $ 1,284 $ 1,284 $ 1,284 $ 1,284 $ 1,284 $ 1,284 $ 1,284 $ 1,284 $ 1,284 $ 1,284 $ 1,284 $ 15,408 V6 $ 1,016 $ 1,016 $ 1,016 $ 1,016 $ 1,016 $ 1,016 $ 1,016 $ 1,016 $ 1,016 $ 1,016 $ 1,016 $ 1,016 $ 12,192 V8 $ 839 $ 839 $ 839 $ 839 $ 839 $ 839 $ 839 $ 839 $ 839 $ 839 $ 839 $ 839 $ 10,068 V9 $ 1,196 $ 1,196 $ 1,196 $ 1,196 $ 1,196 $ 1,196 $ 1,196 $ 1,196 $ 1,196 $ 1,196 $ 1,196 $ 1,196 $ 14,352 I1 $ 2,528 $ 2,528 $ 2,528 $ 2,528 $ 2,528 $ 2,528 $ 2,528 $ 2,528 $ 2,528 $ 2,528 $ 2,528 $ 2,528 $ 30,336 I2 $ 1,596 $ 1,596 $ 1,596 $ 1,596 $ 1,596 $ 1,596 $ 1,596 $ 1,596 $ 1,596 $ 1,596 $ 1,596 $ 1,596 $ 19,152 I3 $ 839 $ 839 $ 839 $ 839 $ 839 $ 839 $ 839 $ 839 $ 839 $ 839 $ 839 $ 839 $ 10,068 I4 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 13,200 I5 $ 2,265 $ 2,265 $ 2,265 $ 2,265 $ 2,265 $ 2,265 $ 2,265 $ 2,265 $ 2,265 $ 2,265 $ 2,265 $ 2,265 $ 27,180 I6 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 13,200 Gross Rent $ 17,825 $ 17,825 $ 17,825 $ 17,825 $ 17,825 $ 17,825 $ 17,825 $ 17,825 $ 17,825 $ 17,825 $ 17,825 $ 17,825 $ 213,900 Reserve Interest $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 4,431 Commercial Unit Utilities $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 3,602 Parking $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Laundry $ 3 $ 3 $ 3 $ 3 $ 3 $ 3 $ 3 $ 3 $ 3 $ 3 $ 3 $ 3 $ 33 Vacancy $ (1,070) $ (1,070) $ (1,070) $ (1,070) $ (1,070) $ (1,070) $ (1,070) $ (1,070) $ (1,070) $ (1,070) $ (1,070) $ (1,070) $ (12,834) $ 17,428 $ 17,428 $ 17,428 $ 17,428 $ 17,428 $ 17,428 $ 17,428 $ 17,428 $ 17,428 $ 17,428 $ 17,428 $ 17,428 $ 209,132 Other Income Per Month Proforma
Reserve Int. 3% $ 369 2026 2025 Budget 2024 2023 2022 2021 Commercial Unit Utilities $ 3,602 $ 300
Parking $ 33 $ 32 $ 52 $ 51 $ 44 $ 21
Laundry 33 $ 3
Compl. Vac. (%) -6% -38.46% 1.96% 15.91% 109.52%
Current Vac. (%) 0%
# Vacant Units 0 Ann. Increase
# Occupied Units 14 Rate Proforma 3% 2025 Budget
Gas 20% $ 1,053 $ 5,265 $ 5,112
Electricity 20% $ 1,204 $ 6,019 $ 5,844
Water 10% $ 1,015 $ 10,148 $ 9,852
Sewer 10% $ 330 $ 3,300 $ 3,204
Total $ 3,602
First Year
Sourced from audited financial statements and budget
Laundry
Commercial Unit Utilities
ATTACHMENT 5

8 Visitacion Avenue, Brisbane Proforma Date 6/2026
2026
6 1 2 3 4 5 6 7 8 9 10 11 12
INCOME 6/1/2026 7/1/2026 8/1/2026 9/1/2026 10/1/2026 ######## 12/1/2026 1/1/2027 2/1/2027 3/1/2027 4/1/2027 5/1/2027 Y1 TOTAL Comments Program Income
Rent Revenue $ 17,825 $ 17,825 $ 17,825 $ 17,825 $ 17,825 17,825$ $ 17,825 17,825$ 17,825$ $ 17,825 $ 17,825 $ 17,825 $ 213,900 Vacancy (%) $ (1,070) $ (1,070) $ (1,070) $ (1,070) $ (1,070) $ (1,070) $ (1,070) $ (1,070) $ (1,070) $ (1,070) $ (1,070) $ (1,070) $ (12,834) Rent Revenue Total $ 16,756 $ 16,756 $ 16,756 $ 16,756 $ 16,756 16,756$ $ 16,756 16,756$ 16,756$ $ 16,756 $ 16,756 $ 16,756 $ 201,066 Other Rental Property Income
Storage Rents $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Application Fees $ 4 $ 4 $ 4 $ 4 $ 4 $ 4 $ 4 $ 4 $ 4 $ 4 $ 4 $ 4 $ 50 Late Fees $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Renters Insurance - Prodesse's 3rd Party Plan $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Laundry 3% $ 3 $ 3 $ 3 $ 3 $ 3 $ 3 $ 3 $ 3 $ 3 $ 3 $ 3 $ 3 $ 33 Parking $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial Unit Utilities $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 3,602 Total Other Rental Property Income $ 307 $ 307 $ 307 $ 307 $ 307 $ 307 $ 307 $ 307 $ 307 $ 307 $ 307 $ 307 $ 3,685 Total Program Income $ 17,063 $ 17,063 $ 17,063 $ 17,063 $ 17,063 17,063$ $ 17,063 17,063$ 17,063$ $ 17,063 $ 17,063 $ 17,063 $ 204,751 Investments
Interest-Savings, Short-term CD $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 4,431 Total Investments $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 4,431 Miscellaneous Revenue $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - GROSS EFFECTIVE INCOME $ 17,432 $ 17,432 $ 17,432 $ 17,432 $ 17,432 17,432$ $ 17,432 17,432$ 17,432$ $ 17,432 $ 17,432 $ 17,432 $ 209,182

EXPENSES
Facilities and Equipment
Property Insurance $ 974 $ 974 $ 974 $ 974 $ 974 $ 974 $ 974 $ 974 $ 974 $ 974 $ 974 $ 974 $ 11,688 Quote Total Facilities and Equipment $ 974 $ 974 $ 974 $ 974 $ 974 $ 974 $ 974 $ 974 $ 974 $ 974 $ 974 $ 974 $ 11,688 $ 14,254 Property premium 82% $ 11,688
Contract Services General libaility premium 18% $ 2,566 Accounting Fees $ 592 $ 592 $ 592 $ 592 $ 592 $ 592 $ 592 $ 592 $ 592 $ 592 $ 592 $ 592 $ 7,105 BRIDGE Dec 2025 YTD Operating Statement - Audit Legal Fees $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Consultants $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Professional Services - Other $ 623 $ 623 $ 623 $ 623 $ 623 $ 623 $ 623 $ 623 $ 623 $ 623 $ 623 $ 623 $ 7,476 BRIDGE Dec 2025 YTD Operating Statement - Bookkeeping fees Total Contract Services $ 1,215 $ 1,215 $ 1,215 $ 1,215 $ 1,215 $ 1,215 $ 1,215 $ 1,215 $ 1,215 $ 1,215 $ 1,215 $ 1,215 $ 14,581 Property Operating Expenses
Repairs & Maintenance 3% $ 858 $ 858 $ 858 $ 858 $ 858 $ 858 $ 858 $ 858 $ 858 $ 858 $ 858 $ 858 $ 10,300 BRIDGE Dec 2025 YTD Operating Statement Fire Safety/Contracts 3% $ 287 $ 287 $ 287 $ 287 $ 287 $ 287 $ 287 $ 287 $ 287 $ 287 $ 287 $ 287 $ 3,441 BRIDGE Dec 2025 YTD Operating Statement HVAC Repairs 3% $ 28 $ 28 $ 28 $ 28 $ 28 $ 28 $ 28 $ 28 $ 28 $ 28 $ 28 $ 28 $ 332 BRIDGE Dec 2025 YTD Operating Statement Pest Control/Contracts 3% $ 150 $ 150 $ 150 $ 150 $ 150 $ 150 $ 150 $ 150 $ 150 $ 150 $ 150 $ 150 $ 1,806 BRIDGE Dec 2025 YTD Operating Statement Landscaping/tree/yard servicer 3% $ 984 $ 984 $ 984 $ 984 $ 984 $ 984 $ 984 $ 984 $ 984 $ 984 $ 984 $ 984 $ 11,806 BRIDGE Dec 2025 YTD Operating Statement Roof & Gutter Repairs/Maintenance 3% $ 172 $ 172 $ 172 $ 172 $ 172 $ 172 $ 172 $ 172 $ 172 $ 172 $ 172 $ 172 $ 2,060 Other Contracts 3% $ 271 $ 271 $ 271 $ 271 $ 271 $ 271 $ 271 $ 271 $ 271 $ 271 $ 271 $ 271 $ 3,254 BRIDGE Dec 2025 YTD Operating Statement Miscellaneous Operating & Maintenance 5% $ 872 $ 872 $ 872 $ 872 $ 872 $ 872 $ 872 $ 872 $ 872 $ 872 $ 872 $ 872 $ 10,459 Total Repairs & Maintenance Expenses $ 3,622 $ 3,622 $ 3,622 $ 3,622 $ 3,622 $ 3,622 $ 3,622 $ 3,622 $ 3,622 $ 3,622 $ 3,622 $ 3,622 $ 43,459 Unit Turnover Costs
Bath/Kitchen repairs
Painting
Total Unit Turnover Costs $ 292 $ 292 $ 292 $ 292 $ 292 $ 292 $ 292 $ 292 $ 292 $ 292 $ 292 $ 292 $ 3,500 Utilies Common Area Proforma
Gas 3.50% $ 515 $ 515 $ 515 $ 515 $ 515 $ 515 $ 515 $ 515 $ 515 $ 515 $ 515 $ 515 $ 6,183 BRIDGE Dec 2025 YTD Operating Statement 2026 2025 Budget 2024 2023 2022 2021 Electricity 3.50% $ 460 $ 460 $ 460 $ 460 $ 460 $ 460 $ 460 $ 460 $ 460 $ 460 $ 460 $ 460 $ 5,519 BRIDGE Dec 2025 YTD Operating Statement $ 24,012 $ 24,012 $ 23,549 $ 22,757 $ 25,639 $ 21,587 Water 3.50% $ 725 $ 725 $ 725 $ 725 $ 725 $ 725 $ 725 $ 725 $ 725 $ 725 $ 725 $ 725 $ 8,696 BRIDGE Dec 2025 YTD Operating Statement Sewer 3.50% $ 191 $ 191 $ 191 $ 191 $ 191 $ 191 $ 191 $ 191 $ 191 $ 191 $ 191 $ 191 $ 2,298 BRIDGE Dec 2025 YTD Operating Statement Rate change 1.97% 3.48% 5.42% Garbage 3.50% $ 219 $ 219 $ 219 $ 219 $ 219 $ 219 $ 219 $ 219 $ 219 $ 219 $ 219 $ 219 $ 2,632 Per Stambaugh 2025 Total Utilities Common Area $ 2,111 $ 2,111 $ 2,111 $ 2,111 $ 2,111 $ 2,111 $ 2,111 $ 2,111 $ 2,111 $ 2,111 $ 2,111 $ 2,111 $ 25,327 Dec 2025 YTD Operating Statement Updated Proforma Gas $ 5,974 $ 6,183
Property Management Fees 7.00% $ 1,269 $ 1,269 $ 1,269 $ 1,269 $ 1,269 $ 1,269 $ 1,269 $ 1,269 $ 1,269 $ 1,269 $ 1,269 $ 1,269 $ 15,227 Prodesse Property Group Electricity $ 5,332 $ 5,519 Onsite Personnel $ 7,280 $ 607 $ 607 $ 607 $ 607 $ 607 $ 607 $ 607 $ 607 $ 607 $ 607 $ 607 $ 607 $ 7,280 Property Manager Admin Fees $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 185 Per Stambaugh Water $ 8,402 $ 8,696 Lease-up Fee $ 83 $ 83 $ 83 $ 83 $ 83 $ 83 $ 83 $ 83 $ 83 $ 83 $ 83 $ 83 $ 1,000 Assuming average rent of $2,000 and 1 turnover per yr Sewer $ 2,220 $ 2,298 Total Property Management Fees $ 1,974 $ 1,974 $ 1,974 $ 1,974 $ 1,974 $ 1,974 $ 1,974 $ 1,974 $ 1,974 $ 1,974 $ 1,974 $ 1,974 $ 23,692 Total $ 21,928 $ 22,695 Licenses, Permits & Dues $ 53 $ 53 $ 53 $ 53 $ 53 $ 53 $ 53 $ 53 $ 53 $ 53 $ 53 $ 53 $ 631 Per Stambaugh Total Property Operating Expenses $ 8,051 $ 8,051 $ 8,051 $ 8,051 $ 8,051 $ 8,051 $ 8,051 $ 8,051 $ 8,051 $ 8,051 $ 8,051 $ 8,051 $ 96,610 Other Types of Expenses
Insurance - Liability, D and O $ 249 $ 249 $ 249 $ 249 $ 249 $ 249 $ 249 $ 249 $ 249 $ 249 $ 249 $ 249 $ 2,988 Nonprofit Insurace Alliance Total Other Types of Expenses $ 249 $ 249 $ 249 $ 249 $ 249 $ 249 $ 249 $ 249 $ 249 $ 249 $ 249 $ 249 $ 2,988 Travel and Meetings
Mileage, Tolls and Parking $ 17 $ 17 $ 17 $ 17 $ 17 $ 17 $ 17 $ 17 $ 17 $ 17 $ 17 $ 17 $ 200 Total Travel and Meetings $ 17 $ 17 $ 17 $ 17 $ 17 $ 17 $ 17 $ 17 $ 17 $ 17 $ 17 $ 17 $ 200 Business Expenses
Property Tax $ 63 $ 63 $ 63 $ 63 $ 63 $ 63 $ 63 $ 63 $ 63 $ 63 $ 63 $ 63 $ 750 Placeholder Project Asset Management Fee $15,000 $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 1,250 $ 15,000 Staffing, Admin & Management (HEART-SV) 12% $ 2,092 $ 2,092 $ 2,092 $ 2,092 $ 2,092 $ 2,092 $ 2,092 $ 2,092 $ 2,092 $ 2,092 $ 2,092 $ 2,092 $ 25,102 City Monitoring Fee $1,750 $ 146 $ 146 $ 146 $ 146 $ 146 $ 146 $ 146 $ 146 $ 146 $ 146 $ 146 $ 146 $ 1,750 County Monitoring Fee $1,250 $ 104 $ 104 $ 104 $ 104 $ 104 $ 104 $ 104 $ 104 $ 104 $ 104 $ 104 $ 104 $ 1,250 Total Business Expenses $ 3,654 $ 3,654 $ 3,654 $ 3,654 $ 3,654 $ 3,654 $ 3,654 $ 3,654 $ 3,654 $ 3,654 $ 3,654 $ 3,654 $ 43,852 SUB -TOTAL - EXPENSES $ 14,160 $ 14,160 $ 14,160 $ 14,160 $ 14,160 14,160$ $ 14,160 14,160$ 14,160$ $ 14,160 $ 14,160 $ 14,160 $ 169,919

RESERVES
Replacement Reserve Deposit 10.0% $ 1,743 $ 1,743 $ 1,743 $ 1,743 $ 1,743 $ 1,743 $ 1,743 $ 1,743 $ 1,743 $ 1,743 $ 1,743 $ 1,743 $ 20,918 Operating Reserve Deposit $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - SUB-TOTAL - RESERVES $ 1,743 $ 1,743 $ 1,743 $ 1,743 $ 1,743 $ 1,743 $ 1,743 $ 1,743 $ 1,743 $ 1,743 $ 1,743 $ 1,743 $ 20,918 TOTAL OPERATING EXPENSES $ 15,903 $ 15,903 $ 15,903 $ 15,903 $ 15,903 15,903$ $ 15,903 15,903$ 15,903$ $ 15,903 $ 15,903 $ 15,903 $ 190,837 NET OPERATING INCOME (INCOME minus OP EXPENSES) $ 1,529 $ 1,529 $ 1,529 $ 1,529 $ 1,529 $ 1,529 $ 1,529 $ 1,529 $ 1,529 $ 1,529 $ 1,529 $ 1,529 $ 18,345

HARD DEBT SERVICE
Debt A (1st position)
Debt B (2nd position)
Debt C (3rd position)
TOTAL - HARD DEBT SERVICE $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - NET CASH FLOW (NOI minus DEBT SERVICE) $ 1,529 $ 1,529 $ 1,529 $ 1,529 $ 1,529 $ 1,529 $ 1,529 $ 1,529 $ 1,529 $ 1,529 $ 1,529 $ 1,529 $ 18,345 Debt Service Coverage Ratio #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! [Ctrl + 8] outline on/off
$ 42,480
$ 5,230
$ 47,709 81%
1st Year of Operations
1st Month of Operations
Sourced from audited financial statements and budget
Utilities (electricity, gas,
water, sewer)
Stambaugh ratio
FY25-26 Insurance
ATTACHMENT 5

8 Visitacion Avenue, Brisbane
Annual Increase Notes Calc. Factors 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 INCOME
Program Income
Rent Revenue 3.00% $ 213,900 $ 220,317 $ 248,852 $ 254,367 $ 273,418 $ 295,942 $ 314,223 $ 322,318 $ 347,637 $ 416,170 $ 428,656 $ 441,515 $ 454,761 $ 468,404 $ 482,456 $ 496,929 $ 511,837 $ 527,192 $ 543,008 $ 559,298 $ 576,077 $ 593,360 $ 611,160 $ 629,495 $ 648,380 $ 667,831 $ 687,866 $ 708,502 $ 729,757 $ 751,650 Vacancy (%) -6.00% $ (12,834) $ (13,219) $ (14,931) $ (15,262) $ (16,405) $ (17,757) $ (18,853) $ (19,339) $ (20,858) $ (24,970) $ (25,719) $ (26,491) $ (27,286) $ (28,104) $ (28,947) $ (29,816) $ (30,710) $ (31,632) $ (32,580) $ (33,558) $ (34,565) $ (35,602) $ (36,670) $ (37,770) $ (38,903) $ (40,070) $ (41,272) $ (42,510) $ (43,785) $ (45,099) Rent Revenue Total $ 201,066 $ 207,098 $ 233,921 $ 239,105 $ 257,013 $ 278,185 $ 295,370 $ 302,979 $ 326,779 $ 391,200 $ 402,936 $ 415,024 $ 427,475 $ 440,299 $ 453,508 $ 467,114 $ 481,127 $ 495,561 $ 510,428 $ 525,740 $ 541,513 $ 557,758 $ 574,491 $ 591,725 $ 609,477 $ 627,762 $ 646,594 $ 665,992 $ 685,972 $ 706,551 Other Rental Property Income
Storage Rents $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Application Fees $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 Late Fees $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Renters Insurance - Prodesse's 3rd Party Plan $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Laundry 1.00% $ 33 $ 33 $ 34 $ 34 $ 34 $ 35 $ 35 $ 35 $ 36 $ 36 $ 36 $ 37 $ 37 $ 38 $ 38 $ 38 $ 39 $ 39 $ 39 $ 40 $ 40 $ 41 $ 41 $ 41 $ 42 $ 42 $ 43 $ 43 $ 44 $ 44 Parking 3.00% $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial Unit Utilities 3.00% $ 3,602 $ 3,710 $ 3,821 $ 3,936 $ 4,054 $ 4,175 $ 4,301 $ 4,430 $ 4,563 $ 4,699 $ 4,840 $ 4,986 $ 5,135 $ 5,289 $ 5,448 $ 5,611 $ 5,780 $ 5,953 $ 6,132 $ 6,316 $ 6,505 $ 6,700 $ 6,901 $ 7,108 $ 7,322 $ 7,541 $ 7,767 $ 8,000 $ 8,240 $ 8,488 Total Other Rental Property Income $ 3,685 $ 3,793 $ 3,905 $ 4,020 $ 4,138 $ 4,260 $ 4,386 $ 4,515 $ 4,648 $ 4,785 $ 4,927 $ 5,072 $ 5,222 $ 5,377 $ 5,536 $ 5,700 $ 5,868 $ 6,042 $ 6,221 $ 6,405 $ 6,595 $ 6,791 $ 6,992 $ 7,200 $ 7,413 $ 7,633 $ 7,860 $ 8,094 $ 8,334 $ 8,582 Total Program Income $ 204,751 $ 210,891 $ 237,826 $ 243,125 $ 261,151 $ 282,445 $ 299,755 $ 307,494 $ 331,427 $ 395,986 $ 407,863 $ 420,097 $ 432,697 $ 445,676 $ 459,044 $ 472,813 $ 486,995 $ 501,603 $ 516,649 $ 532,146 $ 548,108 $ 564,549 $ 581,483 $ 598,925 $ 616,891 $ 635,395 $ 654,454 $ 674,086 $ 694,306 $ 715,133 Investments
Interest-Savings, Short-term CD 3.00% $ 4,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 Total Investments $ 4,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 $ 1,431 Miscellaneous Revenue $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - GROSS EFFECTIVE INCOME $ 209,182 $ 212,322 $ 239,257 $ 244,556 $ 262,582 $ 283,877 $ 301,187 $ 308,925 $ 332,858 $ 397,417 $ 409,294 $ 421,528 $ 434,129 $ 447,107 $ 460,475 $ 474,244 $ 488,427 $ 503,034 $ 518,080 $ 533,577 $ 549,539 $ 565,980 $ 582,914 $ 600,356 $ 618,322 $ 636,826 $ 655,886 $ 675,517 $ 695,737 $ 716,564

EXPENSES
Facilities and Equipment
Property Insurance 3.00% $ 11 688 $ 12 039 $ 12 400 $ 12,772 $ 13,155 $ 13,550 $ 13,956 $ 14,375 $ 14,806 $ 15,251 $ 15,708 $ 16,179 $ 16,665 $ 17,165 $ 17,680 $ 18,210 $ 18,756 $ 19,319 $ 19,899 $ 20,495 $ 21,110 $ 21,744 $ 22,396 $ 23 068 $ 23 760 $ 24 473 $ 25 207 $ 25 963 $ 26 742 $ 27 544 Total Facilities and Equipment $ 11,688 $ 12,039 $ 12,400 $ 12,772 $ 13,155 $ 13,550 $ 13,956 $ 14,375 $ 14,806 $ 15,251 $ 15,708 $ 16,179 $ 16,665 $ 17,165 $ 17,680 $ 18,210 $ 18,756 $ 19,319 $ 19,899 $ 20,495 $ 21,110 $ 21,744 $ 22,396 $ 23,068 $ 23,760 $ 24,473 $ 25,207 $ 25,963 $ 26,742 $ 27,544 Contract Services
Accounting Fees 3.00% $ 7,105 $ 7,318 $ 7,538 $ 7,764 $ 7,997 $ 8,237 $ 8,484 $ 8,738 $ 9,000 $ 9,270 $ 9,549 $ 9,835 $ 10,130 $ 10,434 $ 10,747 $ 11,069 $ 11,401 $ 11,743 $ 12,096 $ 12,459 $ 12,832 $ 13,217 $ 13,614 $ 14 022 $ 14 443 $ 14 876 $ 15 323 $ 15 782 $ 16,256 $ 16 743 Legal Fees $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Consultants $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Professional Services - Other 3.00% $ 7,476 $ 7,700 $ 7,931 $ 8,169 $ 8,414 $ 8,667 $ 8,927 $ 9,195 $ 9,470 $ 9,754 $ 10,047 $ 10,349 $ 10,659 $ 10,979 $ 11,308 $ 11,647 $ 11,997 $ 12,357 $ 12,727 $ 13,109 $ 13,502 $ 13,908 $ 14,325 $ 14 755 $ 15 197 $ 15 653 $ 16 123 $ 16 606 $ 17,105 $ 17 618 Total Contract Services $ 14,581 $ 15,018 $ 15,469 $ 15,933 $ 16,411 $ 16,903 $ 17,410 $ 17,933 $ 18,471 $ 19,025 $ 19,596 $ 20,184 $ 20,789 $ 21,413 $ 22,055 $ 22,717 $ 23,398 $ 24,100 $ 24,823 $ 25,568 $ 26,335 $ 27,125 $ 27,939 $ 28,777 $ 29,640 $ 30,529 $ 31,445 $ 32,389 $ 33,360 $ 34,361 Property Operating Expenses
Repairs & Maintenance 3.00% $ 10,300 $ 10,609 $ 10,927 $ 11,255 $ 11,593 $ 11,941 $ 12,299 $ 12,668 $ 13,048 $ 13,439 $ 13,842 $ 14,258 $ 14,685 $ 15,126 $ 15,580 $ 16,047 $ 16,528 $ 17,024 $ 17,535 $ 18,061 $ 18,603 $ 19,161 $ 19,736 $ 20,328 $ 20,938 $ 21,566 $ 22,213 $ 22,879 $ 23,566 $ 24,273 Fire Safety/Contracts 3.00% $ 3,441 $ 3,544 $ 3,651 $ 3,760 $ 3,873 $ 3,989 $ 4,109 $ 4,232 $ 4,359 $ 4,490 $ 4,625 $ 4,763 $ 4,906 $ 5,054 $ 5,205 $ 5,361 $ 5,522 $ 5,688 $ 5,858 $ 6,034 $ 6,215 $ 6,402 $ 6,594 $ 6,792 $ 6,995 $ 7,205 $ 7,421 $ 7,644 $ 7,873 $ 8,109 HVAC Repairs 3.00% $ 332 $ 342 $ 353 $ 363 $ 374 $ 385 $ 397 $ 409 $ 421 $ 434 $ 447 $ 460 $ 474 $ 488 $ 503 $ 518 $ 533 $ 549 $ 566 $ 583 $ 600 $ 618 $ 637 $ 656 $ 676 $ 696 $ 717 $ 738 $ 760 $ 783 Pest Control/Contracts 3.00% $ 1,806 $ 1,860 $ 1,916 $ 1,973 $ 2,033 $ 2,093 $ 2,156 $ 2,221 $ 2,288 $ 2,356 $ 2,427 $ 2,500 $ 2,575 $ 2,652 $ 2,732 $ 2,813 $ 2,898 $ 2,985 $ 3,074 $ 3,167 $ 3,262 $ 3,359 $ 3,460 $ 3,564 $ 3,671 $ 3,781 $ 3,894 $ 4,011 $ 4,132 $ 4,256 Landscaping/tree/yard servicer 3.00% $ 11 806 $ 12 160 $ 12 525 $ 12,901 $ 13,288 $ 13,686 $ 14,097 $ 14,520 $ 14,955 $ 15,404 $ 15,866 $ 16,342 $ 16,832 $ 17,337 $ 17,857 $ 18,393 $ 18,945 $ 19,513 $ 20,099 $ 20,702 $ 21,323 $ 21,962 $ 22,621 $ 23 300 $ 23 999 $ 24 719 $ 25 460 $ 26 224 $ 27 011 $ 27 821 Roof & Gutter Repairs/Maintenance 3.00% $ 2,060 $ 2,122 $ 2,185 $ 2,251 $ 2,319 $ 2,388 $ 2,460 $ 2,534 $ 2,610 $ 2,688 $ 2,768 $ 2,852 $ 2,937 $ 3,025 $ 3,116 $ 3,209 $ 3,306 $ 3,405 $ 3,507 $ 3,612 $ 3,721 $ 3,832 $ 3,947 $ 4,066 $ 4,188 $ 4,313 $ 4,443 $ 4,576 $ 4,713 $ 4,855 Other Contracts 3.00% $ 3,254 $ 3,352 $ 3,452 $ 3,556 $ 3,663 $ 3,772 $ 3,886 $ 4,002 $ 4,122 $ 4,246 $ 4,373 $ 4,505 $ 4,640 $ 4,779 $ 4,922 $ 5,070 $ 5,222 $ 5,379 $ 5,540 $ 5,706 $ 5,877 $ 6,054 $ 6,235 $ 6,422 $ 6,615 $ 6,814 $ 7,018 $ 7,228 $ 7,445 $ 7,669 Miscellaneous Operating & Maintenance 3.00% 5% $ 10 459 $ 10 616 $ 11 963 $ 12,228 $ 13,129 $ 14,194 $ 15,059 $ 15,446 $ 16,643 $ 19,871 $ 20,465 $ 21,076 $ 21,706 $ 22,355 $ 23,024 $ 23,712 $ 24,421 $ 25,152 $ 25,904 $ 26,679 $ 27,477 $ 28,299 $ 29,146 $ 30 018 $ 30 916 $ 31 841 $ 32 794 $ 33 776 $ 34 787 $ 35 828 Total Repairs & Maintenance Expenses $ 43 459 $ 44 606 $ 46 972 $ 48,287 $ 50,270 $ 52,449 $ 54,462 $ 56,031 $ 58,446 $ 62,928 $ 64,813 $ 66,755 $ 68,756 $ 70,816 $ 72,938 $ 75,124 $ 77,376 $ 79,695 $ 82,083 $ 84,544 $ 87,078 $ 89,688 $ 92,376 $ 95 145 $ 97 997 $ 100,935 $ 103,961 $ 107,077 $ 110,287 $ 113,594 Unit Turnover Costs
Bath/Kitchen repairs
Painting
Total Unit Turnover Costs 3.00% $ 3,500 $ 3,605 $ 3,713 $ 3,825 $ 3,939 $ 4,057 $ 4,179 $ 4,305 $ 4,434 $ 4,567 $ 4,704 $ 4,845 $ 4,990 $ 5,140 $ 5,294 $ 5,453 $ 5,616 $ 5,785 $ 5,959 $ 6,137 $ 6,321 $ 6,511 $ 6,706 $ 6,908 $ 7,115 $ 7,328 $ 7,548 $ 7,775 $ 8,008 $ 8,248 Utilies Common Area
Gas 3.50% $ 6,183 $ 6,400 $ 6,624 $ 6,856 $ 7,096 $ 7,344 $ 7,601 $ 7,867 $ 8,142 $ 8,427 $ 8,722 $ 9,028 $ 9,344 $ 9,671 $ 10,009 $ 10,359 $ 10,722 $ 11,097 $ 11,486 $ 11,888 $ 12,304 $ 12,734 $ 13,180 $ 13 641 $ 14 119 $ 14 613 $ 15 124 $ 15 654 $ 16 202 $ 16 769 Electricity 3.50% $ 5,519 $ 5,712 $ 5,912 $ 6,118 $ 6,333 $ 6,554 $ 6,784 $ 7,021 $ 7,267 $ 7,521 $ 7,784 $ 8,057 $ 8,339 $ 8,631 $ 8,933 $ 9,245 $ 9,569 $ 9,904 $ 10,251 $ 10,609 $ 10,981 $ 11,365 $ 11,763 $ 12,175 $ 12,601 $ 13,042 $ 13,498 $ 13,971 $ 14,459 $ 14,966 Water 3.50% $ 8,696 $ 9,000 $ 9,315 $ 9,641 $ 9,979 $ 10,328 $ 10,689 $ 11,064 $ 11,451 $ 11,852 $ 12,266 $ 12,696 $ 13,140 $ 13,600 $ 14,076 $ 14,569 $ 15,078 $ 15,606 $ 16,152 $ 16,718 $ 17,303 $ 17,908 $ 18,535 $ 19,184 $ 19,855 $ 20,550 $ 21,270 $ 22,014 $ 22,785 $ 23,582 Sewer 3.50% $ 2,298 $ 2,378 $ 2,461 $ 2,548 $ 2,637 $ 2,729 $ 2,825 $ 2,923 $ 3,026 $ 3,132 $ 3,241 $ 3,355 $ 3,472 $ 3,594 $ 3,719 $ 3,850 $ 3,984 $ 4,124 $ 4,268 $ 4,417 $ 4,572 $ 4,732 $ 4,898 $ 5,069 $ 5,247 $ 5,430 $ 5,620 $ 5,817 $ 6,021 $ 6,231 Garbage 3.50% $ 2,632 $ 2,724 $ 2,819 $ 2,918 $ 3,020 $ 3,126 $ 3,235 $ 3,348 $ 3,465 $ 3,587 $ 3,712 $ 3,842 $ 3,977 $ 4,116 $ 4,260 $ 4,409 $ 4,563 $ 4,723 $ 4,888 $ 5,059 $ 5,236 $ 5,420 $ 5,609 $ 5,806 $ 6,009 $ 6,219 $ 6,437 $ 6,662 $ 6,895 $ 7,137 Total Utilities Common Area $ 25,327 $ 26,214 $ 27,131 $ 28,081 $ 29,063 $ 30,081 $ 31,134 $ 32,223 $ 33,351 $ 34,518 $ 35,726 $ 36,977 $ 38,271 $ 39,611 $ 40,997 $ 42,432 $ 43,917 $ 45,454 $ 47,045 $ 48,691 $ 50,396 $ 52,159 $ 53,985 $ 55,875 $ 57,830 $ 59,854 $ 61,949 $ 64,117 $ 66,361 $ 68,684 Property Management Fees 7.00% $ 15,227 $ 15,684 $ 17,689 $ 18,084 $ 19,425 $ 21,011 $ 22,299 $ 22,875 $ 24,656 $ 29,463 $ 30,347 $ 31,258 $ 32,195 $ 33,161 $ 34,156 $ 35,181 $ 36,236 $ 37,323 $ 38,443 $ 39,596 $ 40,784 $ 42,007 $ 43,267 $ 44,565 $ 45,902 $ 47,279 $ 48,697 $ 50,158 $ 51,663 $ 53,213 Onsite Personnel 3.00% $ 7,280 $ 7,280 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Property Manager Admin Fees 3.00% $ 185 $ 191 $ 196 $ 202 $ 208 $ 214 $ 221 $ 228 $ 234 $ 241 $ 249 $ 256 $ 264 $ 272 $ 280 $ 288 $ 297 $ 306 $ 315 $ 324 $ 334 $ 344 $ 354 $ 365 $ 376 $ 387 $ 399 $ 411 $ 423 $ 436 Lease-up Fee 3.00% $ 1,000 $ 1,115 $ 1,259 $ 1,287 $ 1,383 $ 1,497 $ 1,590 $ 1,631 $ 1,759 $ 2,106 $ 2,169 $ 2,234 $ 2,301 $ 2,370 $ 2,441 $ 2,514 $ 2,590 $ 2,667 $ 2,747 $ 2,830 $ 2,915 $ 3,002 $ 3,092 $ 3,185 $ 3,280 $ 3,379 $ 3,480 $ 3,585 $ 3,692 $ 3,803 Total Property Management Fees $ 23,692 $ 16,989 $ 19,145 $ 19,573 $ 21,017 $ 22,722 $ 24,110 $ 24,733 $ 26,650 $ 31,810 $ 32,765 $ 33,748 $ 34,760 $ 35,803 $ 36,877 $ 37,983 $ 39,122 $ 40,296 $ 41,505 $ 42,750 $ 44,032 $ 45,353 $ 46,714 $ 48,115 $ 49,559 $ 51,045 $ 52,577 $ 54,154 $ 55,778 $ 57,452 Licenses, Permits & Dues 3.00% $ 631 $ 650 $ 670 $ 690 $ 711 $ 732 $ 754 $ 776 $ 800 $ 824 $ 848 $ 874 $ 900 $ 927 $ 955 $ 984 $ 1,013 $ 1,044 $ 1,075 $ 1,107 $ 1,140 $ 1,174 $ 1,210 $ 1,246 $ 1,283 $ 1,322 $ 1,362 $ 1,402 $ 1,444 $ 1,488 Total Property Operating Expenses $ 96,610 $ 92,064 $ 97,631 $ 100,455 $ 105,001 $ 110,042 $ 114,639 $ 118,069 $ 123,680 $ 134,647 $ 138,857 $ 143,199 $ 147,677 $ 152,297 $ 157,061 $ 161,976 $ 167,045 $ 172,273 $ 177,667 $ 183,229 $ 188,967 $ 194,886 $ 200,991 $ 207,289 $ 213,784 $ 220,485 $ 227,396 $ 234,525 $ 241,879 $ 249,465 Other Types of Expenses
Insurance - Liability, D and O 3.00% $ 2,988 $ 3,078 $ 3,170 $ 3 265 $ 3 363 $ 3 464 $ 3 568 $ 3 675 $ 3 785 $ 3 899 $ 4 016 $ 4 136 $ 4 260 $ 4 388 $ 4 520 $ 4 656 $ 4 795 $ 4 939 $ 5 087 $ 5 240 $ 5 397 $ 5 559 $ 5 726 $ 5 898 $ 6 074 $ 6 257 $ 6 444 $ 6 638 $ 6 837 $ 7 042 Total Other Types of Expenses $ 2 988 $ 3 078 $ 3 170 $ 3 265 $ 3 363 $ 3 464 $ 3 568 $ 3 675 $ 3 785 $ 3 899 $ 4 016 $ 4 136 $ 4 260 $ 4 388 $ 4 520 $ 4 656 $ 4 795 $ 4 939 $ 5 087 $ 5 240 $ 5 397 $ 5 559 $ 5 726 $ 5 898 $ 6 074 $ 6 257 $ 6 444 $ 6 638 $ 6 837 $ 7 042 Travel and Meetings
Mileage Tolls and Parking 3 00% $ 200 $ 206 $ 212 $ 219 $ 225 $ 232 $ 239 $ 246 $ 253 $ 261 $ 269 $ 277 $ 285 $ 294 $ 303 $ 312 $ 321 $ 331 $ 340 $ 351 $ 361 $ 372 $ 383 $ 395 $ 407 $ 419 $ 431 $ 444 $ 458 $ 471 Total Travel and Meetings $ 200 $ 206 $ 212 $ 219 $ 225 $ 232 $ 239 $ 246 $ 253 $ 261 $ 269 $ 277 $ 285 $ 294 $ 303 $ 312 $ 321 $ 331 $ 340 $ 351 $ 361 $ 372 $ 383 $ 395 $ 407 $ 419 $ 431 $ 444 $ 458 $ 471 Business Expenses
Property Tax 2.00% $ 750 $ 765 $ 780 $ 796 $ 812 $ 828 $ 845 $ 862 $ 879 $ 896 $ 914 $ 933 $ 951 $ 970 $ 990 $ 1,009 $ 1,030 $ 1,050 $ 1,071 $ 1,093 $ 1,114 $ 1,137 $ 1,159 $ 1,183 $ 1,206 $ 1,230 $ 1,255 $ 1,280 $ 1,306 $ 1,332 Project Asset Management Fee 3.50% $ 15,000 $ 15,000 $ 15,525 $ 16,068 $ 16,631 $ 17,213 $ 17,815 $ 18,439 $ 19,084 $ 19,752 $ 20,443 $ 21,159 $ 21,900 $ 22,666 $ 23,459 $ 24,280 $ 25,130 $ 26,010 $ 26,920 $ 27,862 $ 28,838 $ 29,847 $ 30,891 $ 31,973 $ 33,092 $ 34,250 $ 35,449 $ 36,689 $ 37,974 $ 39,303 $ 40,678 Staffing Admin & Management (HEART-SV) 3 00% 12% $ 25 102 $ 25 479 $ 28 711 $ 29,347 $ 31,510 $ 34,065 $ 36,142 $ 37,071 $ 39,943 $ 47,690 $ 49,115 $ 50,583 $ 52,095 $ 53,653 $ 55,257 $ 56,909 $ 58,611 $ 60,364 $ 62,170 $ 64,029 $ 65,945 $ 67,918 $ 69,950 $ 72 043 $ 74 199 $ 76 419 $ 78 706 $ 81 062 $ 83 488 $ 85 988 City Monitoring Fee 3.00% $ 1 750 $ 1,750 $ 1,803 $ 1,857 $ 1,912 $ 1,970 $ 2,029 $ 2,090 $ 2,152 $ 2,217 $ 2,283 $ 2,352 $ 2,422 $ 2,495 $ 2,570 $ 2,647 $ 2,726 $ 2,808 $ 2,892 $ 2,979 $ 3,069 $ 3,161 $ 3,256 $ 3,353 $ 3,454 $ 3,557 $ 3,664 $ 3,774 $ 3,887 $ 4,004 $ 4,124 County Monitoring Fee 3.00% $ 1,250 $ 1,250 $ 1,288 $ 1,326 $ 1,366 $ 1,407 $ 1,449 $ 1,493 $ 1,537 $ 1,583 $ 1,631 $ 1,680 $ 1,730 $ 1,782 $ 1,836 $ 1,891 $ 1,947 $ 2,006 $ 2,066 $ 2,128 $ 2,192 $ 2,258 $ 2,325 $ 2,395 $ 2,467 $ 2,541 $ 2,617 $ 2,696 $ 2,777 $ 2,860 $ 2,946 Total Business Expenses $ 43 852 $ 44 859 $ 48 742 $ 50,052 $ 52,911 $ 56,186 $ 59,008 $ 60,706 $ 64,374 $ 72,944 $ 75,220 $ 77,568 $ 79,990 $ 82,488 $ 85,065 $ 87,723 $ 90,465 $ 93,293 $ 96,210 $ 99,220 $ 102,324 $ 105,527 $ 108,830 $ 112,238 $ 115,753 $ 119,380 $ 123,121 $ 126,980 $ 130,961 $ 135,067 SUB-TOTAL EXPENSES $ 169,919 $ 167,264 $ 177,625 $ 182,696 $ 191,066 $ 200,377 $ 208,821 $ 215,004 $ 225,370 $ 246,026 $ 253,665 $ 261,543 $ 269,666 $ 278,044 $ 286,683 $ 295,592 $ 304,780 $ 314,255 $ 324,026 $ 334,103 $ 344,495 $ 355,212 $ 366,265 $ 377,663 $ 389,419 $ 401,542 $ 414,044 $ 426,939 $ 440,237 $ 453,951

RESERVES
10% 10% 10% 10% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 20% 20% 20% 20% 20% 20% 20% 20% 15% 15% 15% 15% 15% 15% 15% Replacement Reserve Deposit $ 20,918 $ 21,232 $ 23,926 $ 24,456 $ 39,387 $ 42,581 $ 45,178 $ 46,339 $ 49,929 $ 59,613 $ 61,394 $ 63,229 $ 65,119 $ 67,066 $ 69,071 $ 94,849 $ 97,685 $ 100,607 $ 103,616 $ 106,715 $ 109,908 $ 113,196 $ 116,583 $ 90,053 $ 92,748 $ 95,524 $ 98,383 $ 101,328 $ 104,361 $ 107,485 Operating Reserve Deposit $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - SUB-TOTAL - RESERVES $ 20 918 $ 21 232 $ 23 926 $ 24,456 $ 39,387 $ 42,581 $ 45,178 $ 46,339 $ 49,929 $ 59,613 $ 61,394 $ 63,229 $ 65,119 $ 67,066 $ 69,071 $ 94,849 $ 97,685 $ 100,607 $ 103,616 $ 106,715 $ 109,908 $ 113,196 $ 116,583 $ 90 053 $ 92 748 $ 95 524 $ 98 383 $ 101,328 $ 104,361 $ 107,485 TOTAL OPERATING EXPENSES $ 190,837 $ 188,496 $ 201,550 $ 207,151 $ 230,454 $ 242,959 $ 253,999 $ 261,343 $ 275,299 $ 305,639 $ 315,059 $ 324,772 $ 334,786 $ 345,110 $ 355,754 $ 390,441 $ 402,465 $ 414,862 $ 427,642 $ 440,819 $ 454,403 $ 468,409 $ 482,848 $ 467,717 $ 482,167 $ 497,066 $ 512,427 $ 528,266 $ 544,597 $ 561,436 NET OPERATING INCOME (INCOME minus OP EXPENSES) $ 18,345 $ 23,826 $ 37,707 $ 37,405 $ 32,128 $ 40,918 $ 47,188 $ 47,582 $ 57,560 $ 91,778 $ 94,235 $ 96,756 $ 99,343 $ 101,997 $ 104,721 $ 83,803 $ 85,961 $ 88,172 $ 90,438 $ 92,758 $ 95,136 $ 97,572 $ 100,066 $ 132,640 $ 136,155 $ 139,761 $ 143,458 $ 147,251 $ 151,140 $ 155,128 HARD DEBT SERVICE Amount Rate Term
NONE
TOTAL HARD DEBT SERVICE $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - NET CASH FLOW (NOI minus DEBT SERVICE) $ 18,345 $ 23,826 $ 37,707 $ 37,405 $ 32,128 $ 40,918 $ 47,188 $ 47,582 $ 57,560 $ 91,778 $ 94,235 $ 96,756 $ 99,343 $ 101,997 $ 104,721 $ 83,803 $ 85,961 $ 88,172 $ 90,438 $ 92,758 $ 95,136 $ 97,572 $ 100,066 $ 132,640 $ 136,155 $ 139,761 $ 143,458 $ 147,251 $ 151,140 $ 155,128 Debt Service Coverage Ratio #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! DISTRIBUTION OF CASH FLOW T1 T2 T3
Deferred developer's Fee - HEART SV $ 60,000 55.6% $ 10 191 $ 13 236 $ 20 946 $ 20,779 $ 0 Residual Receipts Loans
HEART Loan $ 394 983 39.3% 67.5% $ 7,217 $ 9,373 $ 14 834 $ 14,715 $ 21,694 $ 27,629 $ 31,863 $ 32,129 $ 38,866 $ 61,971 $ 63,630 $ 65,333 $ 67,079 $ 68,872 $ 0 City of Brisbane/Housing Authority Loan $ 3,452,814 4.8% 30.5% 93.8% $ 879 $ 1,142 $ 1,808 $ 1,793 $ 9,789 $ 12,468 $ 14,378 $ 14,498 $ 17,538 $ 27,965 $ 28,713 $ 29,481 $ 30,270 $ 31,079 $ 98,249 $ 78,624 $ 80,649 $ 82,723 $ 84,849 $ 87,026 $ 89,257 $ 91,542 $ 93,882 $ 124,443 $ 127,741 $ 131,124 $ 134,593 $ 138,151 $ 141,800 $ 145,541 County of San Mateo Loan $ 227 436 0.3% 2.0% 6.2% $ 58 $ 75 $ 119 $ 118 $ 645 $ 821 $ 947 $ 955 $ 1,155 $ 1,842 $ 1,891 $ 1,942 $ 1,994 $ 2,047 $ 6,472 $ 5,179 $ 5,312 $ 5,449 $ 5,589 $ 5,732 $ 5,879 $ 6,030 $ 6,184 $ 8,197 $ 8,414 $ 8,637 $ 8,866 $ 9,100 $ 9,340 $ 9,587 100.00% 100.00% SUM $ 18,345 $ 23,826 $ 37,707 $ 37,405 $ 32,128 $ 40,918 $ 47,188 $ 47,582 $ 57,560 $ 91,778 $ 94,235 $ 96,756 $ 99,343 $ 101,997 $ 104,721 $ 83,803 $ 85,961 $ 88,172 $ 90,438 $ 92,758 $ 95,136 $ 97,572 $ 100,066 $ 132,640 $ 136,155 $ 139,761 $ 143,458 $ 147,251 $ 151,140 $ 155,128 SCHEDULE OF OUTSTANDING DEBT (EOY) Principal Interest Rate Deferred developer's Fee - HEART SV $ 60,000 3.00% $ 51,609 $ 39,922 $ 20,173 $ 0 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - HEART Loan $ 394 983 3.00% $ 399,616 $ 402,092 $ 399,108 $ 396,242 $ 386,398 $ 370,361 $ 349,609 $ 327,968 $ 298,941 $ 245,938 $ 189,686 $ 130,044 $ 66,866 $ 0 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - City of Brisbane/Housing Authority Loan $ 3,452,814 3.00% $ 3,555,519 $ 3,657,962 $ 3,759,739 $ 3 861 530 $ 3 955 325 $ 4 046 442 $ 4 135 648 $ 4 224 734 $ 4,310,780 $ 4 386 400 $ 4 461 271 $ 4 535 374 $ 4 608 689 $ 4 681 194 $ 4 686 530 $ 4 711 490 $ 4 734 425 $ 4 755 287 $ 4 774 022 $ 4 790 581 $ 4 804 908 $ 4,816,951 $ 4 826 653 $ 4,805,795 $ 4,781,639 $ 4,754,099 $ 4,723,091 $ 4,688,525 $ 4,650,309 $ 4,608,352 County of San Mateo Loan $ 227,436 3.00% $ 234,201 $ 240,949 $ 247,653 $ 254,358 $ 260,536 $ 266,538 $ 272,414 $ 278,282 $ 283,950 $ 288,931 $ 293,862 $ 298,743 $ 303,573 $ 308,349 $ 308,700 $ 310,344 $ 311,855 $ 313,229 $ 314,463 $ 315,554 $ 316,498 $ 317,291 $ 317,930 $ 316,556 $ 314,965 $ 313,151 $ 311,108 $ 308,831 $ 306,314 $ 303,550 ATTACHMENT 5

Fiscal Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Starting Reserve Balance $ 0 $ 594,373 $ 397,429 $ 314,298 $ 308,209 $ 322,372 $ 222,109 $ 220,546 $ 256,687 $ 265,147 $ 303,683 $ 320,332 $ 375,738 $ 434,513 $ 48,392 $ 98,582 $ 1,031 $ 82,996 $ 130,790 $ 17,337 $ 103,190 $ 119,150 $ 219,748 $ 326,349 $ 333,608 $ 413,598 $ 4,461 $ 26,098 $ 114,140 $ 192,813 Annual Reserve Funding $ 620,876 $ 20,918 $ 21,232 $ 23,926 $ 24,456 $ 39,387 $ 42,581 $ 45,178 $ 46,339 $ 49,929 $ 59,613 $ 61,394 $ 63,229 $ 65,119 $ 67,066 $ 69,071 $ 94,849 $ 97,685 $ 100,607 $ 103,616 $ 106,715 $ 109,908 $ 113,196 $ 116,583 $ 90,053 $ 92,748 $ 95,524 $ 98,383 $ 101,328 $ 104,361 Interest Earnings 2.5% $ 14,496.89 $ 9,183 $ 7,148 $ 6,934 $ 7,266 $ 4,457 $ 4,341 $ 5,159 $ 5,337 $ 6,189 $ 6,359 $ 7,667 $ 9,056 $ - $ 769 $ - $ - $ 807 $ - $ - $ 303 $ 2,679 $ 5,199 $ 5,293 $ 7,891 $ - $ - $ 384 $ 2,231 $ 2,844 Expenses $ 41,000 $ 227,045 $ 111,511 $ 36,948 $ 17,559 $ 144,108 $ 48,485 $ 14,195 $ 43,216 $ 17,581 $ 49,322 $ 13,655 $ 13,510 $ 451,241 $ 17,644 $ 166,623 $ 12,884 $ 50,699 $ 214,059 $ 17,763 $ 91,059 $ 11,989 $ 11,794 $ 114,617 $ 17,955 $ 501,885 $ 73,887 $ 10,725 $ 24,886 $ 79,059 Ending Reserve Balance $ 594,373 $ 397,429 $ 314,298 $ 308,209 $ 322,372 $ 222,109 $ 220,546 $ 256,687 $ 265,147 $ 303,683 $ 320,332 $ 375,738 $ 434,513 $ 48,392 $ 98,582 $ 1,031 $ 82,996 $ 130,790 $ 17,337 $ 103,190 $ 119,150 $ 219,748 $ 326,349 $ 333,608 $ 413,598 $ 4,461 $ 26,098 $ 114,140 $ 192,813 $ 220,958 # Component
Building Exteriors
104 Balcony Surfaces -
Resurface
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2,131 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 117 Walkway Decks -
Resurface
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 17,983 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 117 Walkway Decks -
Seal/Repair
$ - $ - $ - $ 2,025 $ - $ - $ - $ - $ 2,463 $ - $ - $ - $ - $ 2,997 $ - $ - $ - $ - $ 3,646 $ - $ - $ - $ - $ 4,436 $ - $ - $ - $ - $ 5,398 $ - 118 Balcony Railing - Replace $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 15,985 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 324 Exterior Lights - Replace $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 15,128 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 508 Exterior Railing -
Repair/Replace
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 19,981 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 703 Utility Doors - Replace $ - $ - $ - $ - $ - $ - $ - $ - $ 4,106 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 1115 Building Exterior - Repaint $ - $ - $ 96,724 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 143,175 $ - $ - $ - $ - $ - $ - $ 211,934 $ - $ - $ - $ - 1117 Exterior Surfaces - Repair $ - $ - $ - $ - $ - $ 24,181 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 35,794 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 52,983 $ - $ - $ - $ - 1137 Windows - Replace $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 314,699 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 1303 Comp Shingle Roofs -
Replace
$ - $ 126,547 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 1308 Flat Roof - Replace $ - $ 44,995 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 98,589 $ - $ - $ - $ - $ - $ - 1309 Metal Roof - Replace $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 20,813 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 1312 Gutters/Downspouts -
Partial Replace
$ - $ 17,000 $ - $ - $ - $ 20,683 $ - $ - $ - $ - $ 25,164 $ - $ - $ - $ - $ 30,616 $ - $ - $ - $ - $ 37,249 $ - $ - $ - $ - $ 45,319 $ - $ - $ - $ - Building Interiors, Common
325 Interior Lights - Replace $ - $ - $ - $ - $ - $ 3,650 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 909 Bathroom - Refurbish $ - $ - $ - $ - $ - $ 6,083 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 13,329 $ - $ - $ - $ - 911 Kitchen Appliances -
Replace
$ - $ - $ - $ - $ - $ 2,920 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 4,322 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 6,398 $ - $ - $ - $ - 912 Kitchen - Remodel $ - $ - $ - $ - $ - $ 12,775 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 27,991 $ - $ - $ - $ - 918 Office - Remodel $ - $ - $ - $ - $ - $ 4,258 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 9,330 $ - $ - $ - $ - 1110 Community Room -
Repaint
$ - $ - $ - $ - $ - $ 11,680 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 17,289 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 25,592 $ - $ - $ - $ - Building Interiors, Units
915 Unit - Remodel $ 15,000 $ 14,895 $ 14,787 $ 14,675 $ 14,561 $ 14,443 $ 14,321 $ 14,195 $ 14,066 $ 13,933 $ 13,796 $ 13,655 $ 13,510 $ 13,360 $ 13,206 $ 13,047 $ 12,884 $ 12,715 $ 12,541 $ 12,363 $ 12,179 $ 11,989 $ 11,794 $ 11,592 $ 11,385 $ 11,172 $ 10,952 $ 10,725 $ 10,492 $ 10,252 Common Area
202 Asphalt - Repave $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 54,650 $ - $ - $ - $ - 203 Asphalt -
Seal/Repair/Stripe
$ - $ - $ - $ - $ 2,998 $ - $ - $ - $ - $ 3,648 $ - $ - $ - $ - $ 4,438 $ - $ - $ - $ - $ 5,400 $ - $ - $ - $ - $ 6,570 $ - $ - $ - $ - $ 7,993 320 Pole Lights - Replace $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 21,611 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 322 Bollard Lights - Replace $ - $ - $ - $ - $ - $ 8,760 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 19,194 $ - $ - $ - $ - 403 Mailboxes - Replace $ - $ 4,368 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 11,644 $ - $ - $ - 404 Outdoor Furniture -
Replace
$ - $ - $ - $ - $ - $ 2,433 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 3,602 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5,332 $ - $ - $ - $ - 503 Metal Fence/Gate -
Replace
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 15,818 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 505 Wood Fence -
Repair/Replace
$ - $ 19,240 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 51,291 $ - $ - $ - 509 Decorative Arbor - Replace $ - $ - $ - $ 3,375 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 8,996 $ - 514 Wood Retaining Wall -
Replace/Repair
$ - $ - $ - $ - $ - $ - $ - $ - $ 22,581 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 750 Pedestrian Gates -
Replace
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 27,474 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Mechanical & Systems
704 Intercom - Replace $ - $ - $ - $ - $ - $ 23,725 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 37,984 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 60,814 803 Water Heaters - Replace $ - $ - $ - $ - $ - $ - $ 34,164 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 54,697 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 1001 Fire Backflow Preventer -
Replace
$ - $ - $ - $ 16,873 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 1811 Plumbing - Inspect/Repair $ 7,000 $ - $ - $ - $ - $ 8,517 $ - $ - $ - $ - $ 10,362 $ - $ - $ - $ - $ 12,607 $ - $ - $ - $ - $ 15,338 $ - $ - $ - $ - $ 18,661 $ - $ - $ - $ - 1819 Fire Alarm System -
Replace
$ 12,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 26,293 $ - $ - $ - $ - $ - $ - $ - $ - $ - 1844 Electrical System -
Inspect/Repair
$ 7,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 12,607 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Total Expenses $ 41,000 $ 227,045 $ 111,511 $ 36,948 $ 17,559 $ 144,108 $ 48,485 $ 14,195 $ 43,216 $ 17,581 $ 49,322 $ 13,655 $ 13,510 $ 451,241 $ 17,644 $ 166,623 $ 12,884 $ 50,699 $ 214,059 $ 17,763 $ 91,059 $ 11,989 $ 11,794 $ 114,617 $ 17,955 $ 501,885 $ 73,887 $ 10,725 $ 24,886 $ 79,059 Painting Quotes Roofing Quotes
Quote 1 Quote 1: American Standard Roofing Quote 2: IQV Quote 3: McCurdy Roofing Inc.

Urban Painting $ 63,500.00 Shingle Flat Estimated Useful Life Shingle Flat Gutters & DS Estimated Useful Life Shingle Flat - TPO Flat - Modified Gutter & DS Estimated useful life Building 1 (Red) $ 22,850 Building 1 $ 22,831 $ 38,975 $ 3,376 Building 1 $ 24,200 $ 3,160 Quote 2 Building 2 (Blue) $ 10,375 Building 2 $ 28,598 $ 4,414 Building 2 $ 24,200 $ 1,840 R.E. Broocker Co $ 97,500.00 Building 3 (Sky Blue) $ 10,375 Building 3 $ 24,695 $ 4,536 Building 3 $ 24,200 $ 1,840 Building 4 (Purple) $ 18,950 Building 4 $ 31,356 $ 4,195 Building 4 $ 5,670 $ 1,200 Building 5 (Green) $ 21,750 Total $ 107,480 $ 38,975 $ 16,521 $ 162,976 Building 5 $ 21,800 $ 2,700 Building 6 (Orange) $ 17,000 Building 6 $ 21,800 $ 2,700 Building 7 (Yellow) $ 10,450 Estimated Useful Life Building 7 $ 27,300 $ 18,900 $ 84,300 $ 27,450 $ 111,750 Flat Roofs Building 8 $ 14,400 $ 9,900 Total $ 121,870 $ 41,700 $ 28,800 $ 13,440 $ 164,110
Does not include laundry room Discount for $ 98,750
Includes gutters & DS doing all roofs See presentation for pictures and description of roof condition Shingled Roofs
Multiple Layer Tear-offs: $80 per 100 square feet
Wood Remediation: $15 per linear foot
$20.00 per linear foot for replacement of any 2x6 and 2x8 Fascia Boards Conclusion
Any damaged or dry rot fascia board & 1/2” plywood & siding will be replaced to new one with additional cost of material + labor ($120.00/h).

These appear to be at or beyond their useful service life. There are multiple areas of concern, especially where the membrane seams meet the walls. Several of these seams are showing signs of failure across both roof sections.

These are in better condition than the flat roofs, but there are still notable issues. I found multiple soft spots on several roof planes, which typically indicates moisture intrusion and deterioration of the underlying wood sheathing.

Given these conditions and perceived age, I’d estimate the shingled roofs may have another 1–3 years of useful life at best. Saying that though there is the risk of the roofs leaking at any moment.
30-Year Income/Expense Detail 58592-0
Full
2-3 years w/ maintenance
work
Recommend doing reroofing
this summer
Total
1-3 years
See below
ATTACHMENT 5

Financing Commitments
Based on the information provided in the RFP, and the resulting Project deficit, HEART staff is planning to provide a 15-year $262,350 loan to the Project. Final approval for this commitment is subject to the HEART Board’s approval. HEART staff is planning to obtain Board approval on December 10, 2025.

SUPERSEDED. Please see updated Letter of Interested dated 2/24/2026 for summary of requested HEART loan. HEART Board took action on the proposed acquisition in April 2026.

ATTACHMENT 5

Operating Subsidy Commitment
Not applicable.

ATTACHMENT 5

Relocation Plan and Budget
Not applicable.

ATTACHMENT 5

Enclosure B

Enclosure B – Proposer Certifications
Proposer hereby certifies:

1. Truth of Application
That the information submitted in the proposal and any supporting materials is true, accurate, and complete to the best of its knowledge. Proposer acknowledges and understands that if facts and/or information herein are found to be misrepresented, it shall constitute grounds for rejecting the proposal or ending negotiations.

2. Applications are Public Records
That Proposer acknowledges that the information submitted as part of this proposal may be made available to the public pursuant to a request under the California Public Records Act.

3. Legal Authority
The signatory has the legal authority to submit this proposal on behalf of the Proposer.

4. Civil and Legal Questions (include an explanation for any questions answered “Yes”)
a. Has the Proposer filed bankruptcy or receivership or had a bankruptcy or receivership commenced against it, defaulted on a loan, or been foreclosed against in the past ten years?
b. Is the Proposer currently a party to, or has it been notified that it may become a party to any civil litigation that may materially and adversely affect the financial condition of the Proposer’s business in this proposal?
c. Have there been any administrative or civil settlements, decisions, or judgements against the Proposer within the past 10 years that materially and adversely affected the financial condition of the Proposer’s business in this proposal?
d. Is the Proposer currently subject to, or been notified that it may become subject to, any civil or administrative proceeding, examination, or investigation by a local, state, or federal licensing or accreditation agency, a local, state, federal taxing authority, or a local, state, or federal regulatory or enforcement agency?
e. In the past 10 years, has the Proposer been subject to any civil or administrative proceeding, examination, or investigation by a local, state, or federal licensing or accreditation agency, a local, state, or federal taxing authority, or a local, ATTACHMENT 5

Enclosure B

state, or federal regulatory or enforcement agency that resulted in a settlement, decision, or judgment?
f. Is the Proposer currently a party to, or the subject of, or been notified that it may become a party to or the subject of, any criminal litigation, proceeding, charge, complaint, examination, or investigation, of any kind, involving, or that could result in felony charges against the Proposer?
g. Is the Proposer currently a party to, or the subject of, or been notified that it may become a party to or the subject of, any criminal litigation, proceeding, charge, complaint, examination or investigation, of any kind, involving, or that could result in misdemeanor charges against the Proposer for matters relating to the conduct of the Proposer’s business?
h. Is the Proposer currently a party to, or the subject of, or been notified that it may become a party to or the subject of, any criminal litigation, proceeding, charge, complaint, examination or investigation, of any kind, involving, or that could result in criminal charges against the Proposer for any financial or fraud related crime?
i. Is the Proposer currently a party to, or the subject of, or been notified that it may become a party to or the subject of, any criminal litigation, proceeding, charge, complaint, examination or investigation, of any kind, involving, or that could result in criminal charges against the Proposer that could affect the financial condition of the Proposer’s business?
j. Within the past 10 years, has the Proposer been convicted of any felony? k. Within the past 10 years, has the Proposer been convicted of any misdemeanor related to the conduct of the Proposer’s business?
l. Within the past 10 years, has the Proposer been convicted of any misdemeanor for any financial or fraud related crime?
Proposer Name and Title: Organization:
_____________________________________________________________ ____________ Signature Date
__________________________________________ _______________________ ATTACHMENT 5

Project Requirements
HEART requests the following changes to Table 5 of the RFP and the background tables referenced therein.

Income Limits & Maximum Rents. Consistent with the current owner’s practice, HEART intends to stack public subsidies on a limited number of units. Please note that neither HEART’s proposal nor the current owner’s existing rent table match the Table 1 or Table 2 of the RFP due to the stacking of public subsidies. This practice will allow HEART to operate a mixed-income project renting to tenants between 30% and 80% AMI. This will generate sufficient rental income to sustain the project in the long-run. Please see Item 6 on the Letter of Intent.

In addition, HEART proposes to replace the two 40% AMI units with one 30% AMI unit and one 50% AMI unit. This will enable HEART to implement the State Office of Housing and Community Development (HCD) published rent levels.

Debt Coverage Ratio. All proposed project loans are residual receipt loans with no hard debt payment requirements. Therefore, the project does not have a debt service coverage ratio.

Property Welfare Tax. HEART and its affiliate HEART-SV are public joint powers authorities and are not subject to ad valorem property taxes. Therefore, it is not necessary to include the property welfare tax exemption in the Project budget.

Insurance Requirements. HEART requests the City waive Professional Liability Coverage as this project does not constitute providing professional consulting services to the City. Second, we are requesting the City waive workers’ compensation for HEART-SV. As noted in the proposal, HEART intends to assign the acquisition of the property to its affiliate HEART-SV. HEART-SV serves as the legal entity holding title to assets acquired under HEART’s programs and as such it does not have any employees. HEART carries workers compensation and names HEART-SV as an additional insured. The City of Brisbane is also an additional insured on HEART’s insurance.

ATTACHMENT 5

APPRAISAL REPORT
A 14 Unit Affordable Housing Property
8 Visitacion Avenue
Brisbane, CA 94005
Multifamily Building

REQUESTED BY
Audrey Washington
HEART of San Mateo County
2905 South El Camino Real
San Mateo, CA 94403

DATE OF VALUE
Hypothetical : January 20, 2026

PREPARED BY
Bryson
Young, MAI
Sam
Cimino
ATTACHMENT 6

425 Page Mill Road, 2nd Floor PMB 2035
Palo Alto, CA 94306
January 28, 2026
Audrey Washington
HEART of San Mateo County
2905 South El Camino Real
San Mateo, CA 94403
Re: Appraisal File No. 2600045589
Multifamily Building
8 Visitacion Avenue
Brisbane, CA 94005
Dear Audrey Washington,
In accordance with your request, we have completed an appraisal of the subject located at 8 Visitacion Avenue, Brisbane, CA 94005 for the purpose of advancing an opinion of the Hypothetical Market Value of the Leasehold Interest in the subject.

The subject is a 2-story, walk-up, multifamily building consisting of 14 residential units with 19,998 square feet of gross building area. The property is currently operating as an affordable senior housing project property and consists of twelve, 1 BR / 1 BA units and two, 2 BR / 1 BA units. All of the units are deed restricted. Upon transfer of the property, HEART will update the rent restriction levels to include three 30% AMI units, one 50% AMI unit, six 60% AMI units, and four 120% AMI units. The property is currently encumbered by a ground lease with The Redevelopment Agency of the City of Brisbane. The existing ground lease expires in 2028. Based on the provided ground lease, the rental payments consist of any surplus cash associated with the operation of the property; however, there have reportedly never been any payments on the ground lease as there has never been surplus cash over the life of the lease. The current owner, BRIDGE, intends to sell the property to HEART of San Mateo County.

We note that this is not a traditional sale as HEART will essentially be assuming the remaining debt on the property, which totals $4,285,886. HEART is currently finalizing a new ground lease which will be $1 per year that will commence upon the existing ground lease expiration. The project also features a senior community center that is subleased for $1 per year. We note this sublease expires along with the existing ground lease and will be renewed upon expiration for $1 to match the 55 year term of the new ground lease. This community center provided a small amount of utility reimbursement income and will only be leased to this tenant for 55 years. We have included this reimbursement income within our analysis but the space is largely treated as amenity space. Overall, the property is considered to be in average condition. We note that at the request of the client, we have provided the hypothetical value of the subject property as if the subject is encumbered by the new ground lease and is leased at the proposed max affordable rents.

The subject is situated on a 17,138 square foot parcel in an (NCRO-2) Neighborhood Commercial zone and is identified in the city of Brisbane, San Mateo County tax maps as APN 007-221-180. The subject property is located along Visitacion Avenue in the Brisbane neighborhood of Daly City Brisbane.

Our analyses, opinions and conclusions were developed, and this report has been prepared, in conformance with the Standards of Professional Practice and Code of Professional Ethics of the Appraisal Institute, the Uniform Standard of Professional Appraisal Practice (USPAP), HEART of San Mateo County's appraisal guidelines, and applicable state appraisal regulations. To report the assignment results, we use the Appraisal Report option of Standards Rule 2-2(a) of USPAP.

ATTACHMENT 6

425 Page Mill Road, 2nd Floor PMB 2035
Palo Alto, CA 94306
Ms. Washington

January 28, 2026
After carefully considering all available information and factors affecting value, our opinion is:

Final Value Conclusion
Value Premise Date of Value Interest Appraised Value Conclusion As Is Market Value January 20, 2026 Leasehold Interest $3,290,000 As with any appraisal, the reader is reminded that the opinion of value is only valid as of the effective date(s). Our conclusions are predicated on the attitudes and expectations prevalent in the subject submarket and market on the date(s) of value. Bowery Valuation continuously monitors the markets where we are active and appropriate steps have been taken to ensure our analysis is based on the most recent, relevant data available. Changes in market conditions or associated with other unanticipated future events, could impact value.

ATTACHMENT 6

425 Page Mill Road, 2nd Floor PMB 2035
Palo Alto, CA 94306
Ms. Washington

January 28, 2026
The value conclusions are subject to the following Extraordinary Assumptions1. We note the use of this/these extraordinary assumption(s) may have affected the assignment results. If the assumption is found to be false as of the effective date of the appraisal, we reserve the right to modify our value conclusions:
• None.

The value conclusions are based on the following Hypothetical Conditions 2 . We note the use of this/these hypothetical conditions(s) may have affected the assignment results:
• We note the property is currently encumbered by a ground lease that expires in 2028. HEART intends to renew this ground lease at a rate of $1 per year upon expiration. We have valued the property as if it is already encumbered by the new ground lease.
• We note there is a community center lease that is coterminous with the ground lease that expires in 2028.

HEART intends to renew this sublease for $1 per year with expense reimbursements for their share of utilities. We have valued the property as if the new lease is in place. • HEART intends to apply for a new regulatory agreement with new maximum allowable rents. At the request of the client, we have valued the property as if the tenants are leasing the units at the proposed maximum allowable rents.

The opinion of value expressed herein is subject to the certification, assumptions and limiting conditions, and all other information contained in the following written appraisal report.

Thank you for the opportunity to serve you.

Sincerely,
Bryson Young, MAI
Senior Managing Director
Certified General Real Estate Appraiser
CA License No. AG044713
[email protected]
(650) 334-5404
Sam Cimino
Vice President
Certified General Real Estate Appraiser
CA License No. AG3007042
[email protected]
(408) 592-0697
1 The definition of Extraordinary Assumptions can be found in the Glossary of Terms, which is located in the Addenda. 2 The definition of Hypothetical Conditions can be found in the Glossary of Terms, which is located in the Addenda.

ATTACHMENT 6

Summary of Salient Facts & Conclusions
8 Visitacion Avenue, Brisbane, CA
Salient Facts
Property
Property Name A 14 Unit Affordable Housing Property
Address 8 Visitacion Avenue
City Brisbane
State California
County San Mateo
ATTACHMENT 6

APN 007-221-180
Highest and Best Use – Vacant Affordable Housing – Deed Restricted Highest and Best Use – As Improved Affordable Housing – Deed Restricted Date of Inspection January 20, 2026
Report Date January 28, 2026
Effective Date(s) of Value
Hypothetical January 20, 2026
Building Characteristics
Property Type Multifamily
GBA 19,998 sq. ft.

Year Built 2000
No. of Floors 2
Residential Units 14
Occupancy 100%
Condition Average
Total Economic Life 50 years
Effective Age 20 years
Remaining Economic Life 30 years
Site Characteristics
Site Area 17,138 sq. ft.

Site Shape Rectangular
Topography Generally level at street grade
Zoning (NCRO-2) Neighborhood Commercial
Flood Zone Zone X
ATTACHMENT 6

Financial Indicators
Total Per Unit
Potential Gross Income $324,215 $23,158
Effective Gross Income $317,731 $22,695
Operating Expense Ratio 28% -
Net Operating Income $230,072 $16,434
Capitalization Rate 7.00% -
Stabilized Residential Occupancy 98% -
Income Capitalization Approach As Is $3,290,000 $235,000 Sales Comparison Approach As Is $3,150,000 $225,000
Value Conclusion
Final Value Conclusion
Value Premise Date of Value Interest Appraised Value Conclusion As Is Market Value January 20, 2026 Leasehold Interest $3,290,000 The value conclusions are subject to the following Extraordinary Assumptions3. We note the use of this/these extraordinary assumption(s) may have affected the assignment results. If the assumption is found to be false as of the effective date of the appraisal, we reserve the right to modify our value conclusions:
• None.

The value conclusions are based on the following Hypothetical Conditions 4 . We note the use of this/these hypothetical conditions(s) may have affected the assignment results:
• We note the property is currently encumbered by a ground lease that expires in 2028. HEART intends to renew this ground lease at a rate of $1 per year upon expiration. We have valued the property as if it is already encumbered by the new ground lease.
• We note there is a community center lease that is coterminous with the ground lease that expires in 2028.

HEART intends to renew this sublease for $1 per year with expense reimbursements for their share of utilities. We have valued the property as if the new lease is in place. • HEART intends to apply for a new regulatory agreement with new maximum allowable rents. At the request of the client, we have valued the property as if the tenants are leasing the units at the proposed maximum allowable rents.
3 The definition of Extraordinary Assumptions can be found in the Glossary of Terms, which is located in the Addenda. 4 The definition of Hypothetical Conditions can be found in the Glossary of Terms, which is located in the Addenda.

ATTACHMENT 6

Table of Contents
Introduction........................................................................................................................................................................... 1 Purpose & Date of Value.................................................................................................................................................. 1 Identification of the Client................................................................................................................................................ 1 Intended Use & User ........................................................................................................................................................ 1 Property Rights Appraised............................................................................................................................................... 1 Property History ................................................................................................................................................................ 1 Exposure Time .................................................................................................................................................................. 2 Marketing Time................................................................................................................................................................. 2 General Assumptions ....................................................................................................................................................... 2 Definition of Market Value ............................................................................................................................................... 3 Scope of the Appraisal..................................................................................................................................................... 3 Data Sources ..................................................................................................................................................................... 3 Neighborhood & Demographic Overview ........................................................................................................................ 5 Zoning Summary ................................................................................................................................................................10 Assessed Value & Real Estate Taxes ................................................................................................................................. 11 Current Tax Liability........................................................................................................................................................11 Projected Tax Liability ....................................................................................................................................................12 Site Description ..................................................................................................................................................................13 Ground Lease..................................................................................................................................................................14 Description of Improvements............................................................................................................................................15 Building Description.......................................................................................................................................................15 Summary..........................................................................................................................................................................17 Floor Plans.......................................................................................................................................................................18 Submarket Analyses...........................................................................................................................................................20 Daly City/Brisbane: Multifamily Submarket Analysis ...................................................................................................20 Max Allowable Rents ......................................................................................................................................................26 Highest & Best Use.............................................................................................................................................................28 As Vacant.........................................................................................................................................................................28 As Improved....................................................................................................................................................................29 Appraisal Valuation Process ..............................................................................................................................................30 Income Capitalization Approach ......................................................................................................................................31 Income Analysis ..............................................................................................................................................................31 Operating Expense Analysis..........................................................................................................................................38 Stabilized Income & Expenses.......................................................................................................................................43 Income Capitalization.....................................................................................................................................................44 ATTACHMENT 6

Capitalization Rate Conclusion......................................................................................................................................44 Sales Comparison Approach.............................................................................................................................................46 Reconciliation & Final Value ..............................................................................................................................................51 Certification.........................................................................................................................................................................53 Addenda .............................................................................................................................................................................54 Contingent & Limiting Conditions ................................................................................................................................54 Subject Property Photos.................................................................................................................................................57 Map Gallery .....................................................................................................................................................................64 Rent Roll & Financial Statements...................................................................................................................................66 Provided Documents......................................................................................................................................................67 Insurable Replacement Cost........................................................................................................................................146 Insurable Value .............................................................................................................................................................147 Comparable Sales Outline...........................................................................................................................................148 San Mateo County Area Analysis ................................................................................................................................154 San Francisco: Multifamily Market Analysis................................................................................................................160 Qualifications ................................................................................................................................................................166 Licenses .........................................................................................................................................................................167 Letter of Engagement ..................................................................................................................................................169 Glossary of Terms .........................................................................................................................................................176 ATTACHMENT 6
Addenda not included in packet; available upon request.

Introduction
Bowery Valuation 2600045589 1
Introduction
Purpose & Date of Value
Value Premise Date of Value Interest Appraised
Hypothetical Market Value January 20, 2026 Leasehold Interest Identification of the Client
HEART of San Mateo County has engaged Bowery Valuation and is Bowery Valuation’s client for this assignment.

Intended Use & User
The Intended Use is for loan underwriting.

The Intended User is HEART of San Mateo County. This appraisal is not intended for any other use or user. No party or parties other than the intended user may use or rely on the information, opinions and conclusions contained in this report.

Property Rights Appraised5
In this appraisal we provide an opinion of Hypothetical Market Value of the leasehold interest.

Property History
According to public record, the owner of 8 Visitacion Avenue is BRIDGE Housing Corporation. The subject property has, to the best of our knowledge, not sold within the past three years.

We are aware of the contract for HEART to purchase this asset from BRIDGE Housing Corporation. This is not a traditional sale and is being treated more as a transfer of the existing remaining debt on the property. According to the buyer, the City of Brisbane sent out a call for offers of the improvements as BRIDGE wanted to offload the property. There were no other offers to purchase the asset. We are not aware of any additional bids, offers, or options to purchase for this asset.

We note the property is currently in the process of transferring ownership; however, this is not a typical sale. The property is ground leased and the current owner of the improvements wished to move on from the property. The City of Brisbane put out a call for offers and the buyer was the only interested party. We note that this is an assumption of existing debt, and not a true purchase. The remaining debt is $4,285,886. We note the buyer, HEART, ordered this appraisal in order to determine the difference between the outstanding debt and the value of the property, if any. This was done in order to try to gain a debt forgiveness of the difference between the two. We note our concluded value is $3,290,000, which is well below the existing debt. 5 The definitions of the various interests appraised can be found in the Glossary of Terms, which is located in the Addenda.

ATTACHMENT 6

Introduction
Bowery Valuation 2600045589 2
Exposure Time6
It is our opinion that given the current economic conditions, an exposure time for the subject property is between 6 months and 9 months. This conclusion is predicated on interviews with local brokers and other real estate industry sources, on information obtained in the verification process of recent sale transactions for similar properties, and our analysis of supply and demand forces in the local market. The value reported herein presumes such an exposure time.

Marketing Time7
It is our opinion that given the current economic conditions, a marketing time for the subject property is between 6 months and 9 months. This conclusion considers the property’s relative market position, as well as our market value conclusion and it is predicated on interviews with brokers, other real estate industry sources and on information obtained in the verification process.

General Assumptions
Various estimates of gross building area/gross leasable area and net rentable area were provided by the owner/client and/or their agents. This opinion of value reported herein assumes that the data provided are the most recent and accurate.

We note that our appraisers are not experts in the following domains:
• Technical Environmental Inspections: No Environmental Site Assessment report was provided in conjunction with this appraisal. If a report is commissioned and there are any environmental issues uncovered, they could affect our opinion of value reported. We recommend the services of a professional engineer for this purpose.
• Zoning Ordinances: We recommend an appropriately qualified land use attorney if a definitive determination of compliance is required.
• Building Inspections: We recommend an inspection by a building engineer or professional property inspector if a more thorough examination of the subject’s improvements is required. Any immediate expenditures that a trained professional may determine are needed, could affect our opinion of value reported.
• Easements, Encroachments, and Restrictions: Within our research and analysis we will examine the tax map, deed, legal description, and survey (if available) to determine the existence of any easements, encroachments or restrictions impacting the subject property. However, further research required to determine whether or not such restrictions exist is beyond the scope of this appraisal assignment. Deed restrictions are a legal matter and only a title examination by an attorney or title company can uncover such restrictive covenants. Thus, we recommend a title search to definitively determine if any such restrictions do exist.
• Building Health and Fire Codes: Our valuation assumes there are no known code violations. 6 The definition of Exposure Time can be found in the Glossary of Terms, which is located in the Addenda. 7 The definition of Marketing Time can be found in the Glossary of Terms, which is located in the Addenda.

ATTACHMENT 6

Introduction
Bowery Valuation 2600045589 3
Definition of Market Value8
The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

1. buyer and seller are typically motivated;

2. both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest;

3. a reasonable time is allowed for exposure in the open market;

4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and

5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

Scope of the Appraisal
Within the course of this assignment, we have:
• Inspected the building facade, exterior entrance, common areas and stairs of the subject property. • Researched and investigated the location in terms of its economic activity, development patterns, and future trends and related their impact in the market.
• Determined the Highest and Best Use of the subject property based on an analysis of all relevant factors. • Conducted a market survey of rent and vacancy levels of similar buildings. • Analyzed the subject's operating expense history and projections, as well as expense reports of comparable properties, in order to accurately project the stabilized cash flow. • Projected the net operating income under stabilized operation and applied a market-derived capitalization rate to develop an opinion of value by the income capitalization approach. • Researched and analyzed sales of competitive assets and applied the techniques of the sales comparison approach in providing an opinion of value.
• Advanced an opinion of the Hypothetical market value of the identified interest.

Data Sources
The data contained within this appraisal was compiled from market analysis utilizing the following sources (unless otherwise noted): the City Tax Assessor, state and county tax records, the Zoning Board, Claritas, CoStar, Attom, Federal Reserve, and FEMA. The subject photos were taken by Sam Cimino on 01/20/2026. When possible, we have confirmed the reported data with parties to the transactions or those who are intimately familiar with their critical details.
8 Code of Federal Regulations, Title 12, Chapter I, Part 34.42[h]; also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, April 9, 2018, page 77472
ATTACHMENT 6

Introduction
Bowery Valuation 2600045589 4
Resource Verification
Data Source/Verification
Site Size Public Record
Excess/Surplus Land Tax Map
Gross Size/Units Public Record
Residential SF Appraiser's Estimate; Inspection
Number of Buildings Inspection
Amenities Inspection
Deferred Maintenance Inspection
Area Analysis Bureau of Labor Statistics
Income Data Owner; Market Forecast
Expense Data Owner; Expense Comparables
Comparable Rental Data CoStar; Primary Source
Comparable Sales Data CoStar; Public Record; Primary Source ATTACHMENT 6

Neighborhood & Demographic Overview
Bowery Valuation 2600045589 5
Neighborhood & Demographic Overview
Source: Google Maps
Brisbane at a Glance
Brisbane is a residential and semi-suburban community located in San Mateo County, California, approximately 10 miles south of Downtown San Francisco. The area features established neighborhoods, light industrial and commercial corridors, and preserved open-space areas, reflecting a mix of suburban development and low-density residential character. Streets are primarily lined with single-family homes, while smaller clusters of duplexes and townhomes are located near local commercial and service areas. Large-lot rural properties are limited, consistent with the community’s suburban and semi-urban setting, though significant hillside open space and protected natural areas remain throughout the area.

Retail activity is concentrated along primary corridors such as Visitacion Avenue and Bayshore Boulevard, featuring grocery stores, restaurants, coffee shops, banks, and neighborhood service businesses. Additional retail and dining options are available in nearby communities including South San Francisco and Daly City, while larger regional shopping destinations such as Serramonte Center and downtown San Francisco are accessible within a short drive.

Recreational amenities in Brisbane include community parks and extensive open-space preserves, offering walking trails, scenic overlooks, and outdoor recreation opportunities. The area is adjacent to larger regional parks and waterfront areas, providing access to hiking, biking, and outdoor activities. Community facilities support local programs and events, and public open spaces contribute to neighborhood recreation and gatherings.

ATTACHMENT 6

Neighborhood & Demographic Overview
Bowery Valuation 2600045589 6
Brisbane benefits from strong regional and local transportation access. Major corridors include Bayshore Boulevard and U.S. Highway 101, while nearby interstates provide efficient connections throughout the San Francisco Peninsula and the broader Bay Area. Public transportation is available via SamTrans bus service and nearby BART and Caltrain stations, linking the community to major employment centers and transit hubs. Passenger rail service is accessible through Caltrain, offering connections throughout the Peninsula and to San Francisco and San Jose.

Air travel is served by San Francisco International Airport (SFO) and Oakland International Airport (OAK), providing extensive domestic and international flight options.

Population
The following demographic profile, including all of the following charts, were created with data from the U.S. Census Bureau, reflecting the subject's municipality and point of comparison. As of the 2010 Census, Brisbane had a population of 4,282 people and 1,821 households. 2020 Census data shows its population has grown by 1.3% per year to 4,851 residents.

Population and Household Growth
Area 2010 Census 2020 Census
Annual %
Change 2025 Forecast
Population Brisbane 4,282 4,851 1.3% 5,182
San Mateo County 718,451 764,442 0.6% 789,225
Households in Brisbane are, on average, smaller than those in San Mateo County. Households in Brisbane have an average size of 2.34 people, compared to 2.75 people in San Mateo County. 2 person households account for the largest share in both Brisbane and San Mateo County.

Source: U.S. Census Bureau
Households in Brisbane have a lower median income than those in San Mateo County. Households in Brisbane have a median income of $112,016, compared to $122,641 for households in San Mateo County. The chart below indicates the share of households by income brackets. In both Brisbane and San Mateo County, the most common household income is $200k or higher.

ATTACHMENT 6

Neighborhood & Demographic Overview
Bowery Valuation 2600045589 7
Source: U.S. Census Bureau
Housing
Single-family homes, followed by townhomes then 10-19-unit properties account for the most common forms of housing in Brisbane. 64% of the housing units in Brisbane are occupied by their owner. This percentage of owneroccupation is higher than the San Mateo County level of 59%.

Source: U.S. Census Bureau
Source: U.S. Census Bureau
ATTACHMENT 6

Neighborhood & Demographic Overview
Bowery Valuation 2600045589 8
Homes in Brisbane have a median value of $889,200, compared to $1,089,400 for San Mateo County. In Brisbane, the most common home value is between $750k - $1 million, compared to between $1 million - $1.5m for San Mateo County.

Source: U.S. Census Bureau
Homes in Brisbane have a median year built of 1980, compared to 1965 for San Mateo County. In Brisbane, the largest share of homes were built between 1990-1999, compared to between 1950-1959 for San Mateo County.

Source: U.S. Census Bureau
Transportation
In Brisbane, the majority of residents drive alone with 70% choosing to do so. The second most common method is public transit with 10%.

Commuters in Brisbane have a median commute time of about 32 minutes. In Brisbane, the most common commute time is between 45-59 minutes, compared to 30-34 minutes for San Mateo County.

ATTACHMENT 6

Neighborhood & Demographic Overview
Bowery Valuation 2600045589 9
Source: U.S. Census Bureau
Source: U.S. Census Bureau
Transportation Methods
Brisbane benefits from strong regional and local transportation access. Major corridors include Bayshore Boulevard and U.S. Highway 101, while nearby interstates provide efficient connections throughout the San Francisco Peninsula and the broader Bay Area.

Passenger rail service is accessible through Caltrain, offering connections throughout the Peninsula and to San Francisco and San Jose.

Public transportation is available via SamTrans bus service and nearby BART and Caltrain stations, linking the community to major employment centers and transit hubs.

Air travel is served by San Francisco International Airport (SFO) and Oakland International Airport (OAK), providing extensive domestic and international flight options.

Conclusion
Brisbane is a city in San Mateo County, California with access to US highways, public transportation, a range of housing options, recreational amenities, and businesses and retailers for everyday use. Brisbane has experienced moderate population growth over the past decade, a trend that will likely continue in the near term.

ATTACHMENT 6

Zoning Summary
Bowery Valuation 2600045589 10
Zoning Summary
8 Visitacion Avenue is in a (NCRO-2) Neighborhood Commercial zone. Below is a summary of the subject property's compliance with regard to use and bulk regulations.

Zoning Summary
Authority Classification
Property Jurisdiction Brisbane9
Existing Zoning Classification (NCRO-2) Neighborhood Commercial Special Permitting or Condition(s) (i.e., site plan
approval, PUD, or other variance)
None known
Summary of Use and Bulk Regulations
Permits Status
Current Use Accessory dwelling units and junior accessory dwelling units associated with an existing or proposed single family dwelling duplex or multiple family dwelling, financial institutions, home occupations, large family day care homes in a dwelling unit if part of a mixed use development, medical facilities, offices, personal services, restaurants, retail sales and rental, and small family day care homes in a dwelling unit if part of a mixed use development Conforming
Minimum Lot
Size
2500 Complying
Minimum Lot
Width / Frontage
25 Complying
Maximum Height
Of Structures Ft
28, Authorized by a design permit: 35 Complying
Minimum Front
Setback Ft
No requirement (0) Complying
Minimum Side
Setback Ft
No requirement (0), Abutting any residential district: 10 Complying Rear Setback 10 Complying
Density Of
Development
Density of Residential Use: Dwelling unit density in a mixed use shall be established by use permit
Complying
Min. Parking
Required
14 Complying
The (NCRO-2) Neighborhood Commercial zone permits accessory dwelling units and junior accessory dwelling units associated with an existing or proposed single family dwelling duplex or multiple family dwelling, financial institutions, home occupations, large family day care homes in a dwelling unit if part of a mixed use development, medical facilities, offices, personal services, restaurants, retail sales and rental, and small family day care homes in a dwelling unit if part of a mixed use development as of right. 8 Visitacion Avenue is a multifamily property, is conforming with regards to the allowable uses.

The subject is complying with regards to bulk regulations.

Based on the subject’s current zoning regulations, 14 parking spaces are required on the subject property. The subject has 14 available and is complying with regards to parking regulations. 9 The zoning map can be found in the Map Gallery, which is located in the Addenda.

ATTACHMENT 6

Assessed Value & Real Estate Taxes
Bowery Valuation 2600045589 11
Assessed Value & Real Estate Taxes
Current Tax Liability
Real property in California is assessed at a county level. With the passing of Proposition 13 in 1978, property taxes are limited in California to 1% of the assessed value plus local voter-approved bonded indebtedness and special assessments. Proposition 13 also provides for a maximum taxable assessment increase of 2.0% per year unless ownership to the respective property has been transferred or significant new construction occurs. When real property is sold, it becomes uncapped and the taxable assessed value is set at the sale price, and the 2.0% yearly cap becomes applicable for future years. The current real estate tax amount has been capped as described by Proposition 13. A sale of the subject would trigger a reassessment and increased real estate taxes if it sold for a price consistent with the value conclusions presented in this report. The table below outlines the current assessed value for the subject property.

Final Tax Assessment
Actual
Land $0.00
Building + $0.00
Total $0.00
ATTACHMENT 6

Assessed Value & Real Estate Taxes
Bowery Valuation 2600045589 12
Tax Liability
Total PSF
Taxable Assessed Value $0.00 $0.00
Tax Rate (Brisbane - Brisbane Class,
2019)
× 0% 0%
Special Assessment Row $20.82 $0.00
Tax Liability $20.82 $0.00
We note the property is 100% affordable and deed restricted. Ownership is only responsible for special assessments as the property is fully tax exempt.

Projected Tax Liability
In order to determine the projected tax liability, we have applied a tax rate of 0% to our projection of the assessed value.

We note the property is 100% affordable and is tax exempt. The only taxes ownership pays are the special assessments, which are projected at $20.82 annually.

Total PSF
Taxable Assessed Value (Provided) $2,332,684 $116.65
Tax Rate (Brisbane - Brisbane Class, 2019) × 0% 0%
Special Assessment Row $20.82 $0.00
Tax Liability (Projected) $21 $0.00
ATTACHMENT 6

Site Description
Bowery Valuation 2600045589 13
Site Description
Location The subject property is located along Visitacion Avenue in the Brisbane neighborhood of Daly City Brisbane.

Surrounding Uses It is located on a primarily residential and commercial block.

Transportation
Site Area 17,138 square feet
Shape Rectangular
Frontage Visitacion: 90 feet
San Francisco: 210 feet
Inyo: 84 feet
Access The primary access is from Visitacion Avenue
Topography Generally level at street grade
Drainage Assumed adequate
Paving All roads are paved with asphalt and are in satisfactory condition.

Street Lighting Adequate
Hazardous Substances We observed no evidence of toxic or hazardous substances during our inspection of the site. However, environmental issues are beyond our scope of expertise. It is assumed that the property is not adversely affected by environmental hazards.

ATTACHMENT 6

Site Description
Bowery Valuation 2600045589 14
Easements,
Encroachments, and
Restrictions
We did not receive a title report. We know of no deed restrictions, private or public, that further limit the subject property’s use. It is noted that any further research required to determine whether or not such restrictions exist, is beyond the scope of this appraisal assignment. Our valuation assumes no adverse impacts from easements, encroachments or restrictions, and further assumes that the subject has clear and marketable title.

Seismic Hazards
(Earthquake)
All properties in California are subject to some degree of seismic risk. The Alquist-Priolo special Studies Zone Act of 1972 was enacted by the State of California to regulate development near active earthquake faults. The Act required the State Geologist to delineate “special studies zones” along known active faults in California. Cities and Counties affected by the identified zones must limit certain development projects within the zones unless geologic investigation demonstrates that the sites are not threatened by surface displacement from future faulting. According to “Fault-Rupture Hazard Zones in California” published in 2018 by the California Department of Conservation, Department of Mines and Geology, the subject is not within an area affected by the Alquist-Priolo Special Studies Zone Act. Related development limitations do not apply. The subject is not within 1,000 feet of a Alquist Priolo earthquake zone.

Utilities & Services Water/Sewer and Refuse – City
Police & Fire Protection – City
Gas – PG&E
Electricity – PG&E
Flood Hazard Status According to National Flood Insurance Program Rate Map dated April 5, 2019 Community Panel #06081C0042F the subject is located within a Zone X flood zone.

Zone X is an area of minimal flooding. These areas are determined to be outside the 500-year floodplain and are determined to be outside the 1% and 0.2% annual chance floodplains.

Conclusion The site is similar to others in the vicinity, and there are no known negative external factors. Based on its current use, it is functionally adequate.

Ground Lease
The subject property is currently encumbered by a ground lease with The Redevelopment Agency of the City of Brisbane and BRIDGE Housing. The lease is set to expire in 2028. The existing rental agreement states that ground rent payments consists of any surplus cash associated with the operation of the property; however, to the best of our knowledge, no ground rent payments have ever been made.

HEART, the pending buyer of the property, intends to sign a new 55 year ground lease once the property is transferred to them. The lease rate for this ground lease will be $1 per year. At the request of the client, we have provided the hypothetical value of the subject property under the terms of this new ground lease agreement. While there is no official documentation of this lease agreement it is currently in the works and will be finalized before the expiration of the existing lease agreement.

ATTACHMENT 6

Description of Improvements
Bowery Valuation 2600045589 15
Description of Improvements
Building Description
The subject is a 2-story, walk-up, multifamily building consisting of 14 residential units with 19,998 square feet of gross building area. The property is currently operating as an affordable senior housing project property and consists of twelve, 1 BR / 1 BA units and two, 2 BR / 1 BA units. All of the units are deed restricted. Upon transfer of the property, HEART will update the rent restriction levels to include three 30% AMI units, one 50% AMI unit, six 60% AMI units, and four 120% AMI units.

The property is currently encumbered by a ground lease with The Redevelopment Agency of the City of Brisbane.

The existing ground lease expires in 2028. Based on the provided ground lease, the rental payments consist of any surplus cash associated with the operation of the property; however, there have reportedly never been any payments on the ground lease as there has never been surplus cash over the life of the lease. The current owner, BRIDGE, intends to sell the property to HEART of San Mateo County. We note that this is not a traditional sale as HEART will essentially be assuming the remaining debt on the property. HEART is currently finalizing a new ground lease which will be $1 per year that will commence upon the existing ground lease expiration. The project also features a senior community center that is subleased for $1 per year. We note this sublease expires along with the existing ground lease and will be renewed upon expiration for $1 to match the 55 year term of the new ground lease. This community center has been treated as an amenity given the lack of income associated with the space.

Overall, the property is considered to be in average condition.

It was built in 2000.

Building Inspection
On January 20, 2026, Sam Cimino of Bowery Valuation conducted an interior and exterior inspection of the subject property. The inspection included a tour of the building facade, exterior entrance, common areas, and stairs. We were able to inspect the stairs and they are in average condition. We were unable to inspect the roof, but assume it is in average condition. Nevertheless, we recommend a roof inspection by a qualified professional. Moreover, we did not observe any hazardous substances on the improvements or adverse environmental or physical conditions.

Unit Inspection
We inspected 3 one-bedroom units and 1 two-bedroom unit.

Structural, Utilities & Mechanicals
Structural
Foundation Poured concrete
Structural System We assume the structural system is adequate.

Exterior Walls Stucco
Windows Sliding
Roof Flat built-up roof
Utilities
Electricity Individual electric meters are located outside.

Hot Water Central hot water heater system located in the utility room.

ATTACHMENT 6

Description of Improvements
Bowery Valuation 2600045589 16
Gas Individual gas meters are located outside.

Heating/Cooling HVAC system located in the unit for heating and cooling.

Mechanicals
Elevators None
Plumbing We assume the plumbing is adequate and meets local building code requirements.

Sprinklers None
Layout & Finishes
Basement/Cellar The subject does not contain a basement or a cellar.

Entry & Hallways We have not inspected the entryway and interior hallways, but we assume they are in satisfactory condition.

Laundry The subject contains a laundry room as well as in unit washer/dryers.

Stairwell There ae exterior staircases that runs from the ground floor to the 2nd floor.

Security Door locks
Amenities
Building Amenities
Laundry Room There is a laundry room in the building with leased washers and dryers.

Storage Units There are no storage units in the building.

Parking There are 14 parking spaces on the property site.

Shared Recreation Room The building features a shared recreation room.

Unit Amenities
Washer/Dryer All units have washer/dryer hookups.

Residential Unit Finishes
We note that the finishes vary depending on the tenure of the in-place tenants and how recently the unit was renovated.

Kitchens The units generally feature average quality kitchen finishes relative to typical units in similar walk up buildings in the area. The units typically contain linoleum flooring, laminate counter tops, natural wood cabinets, standard oven range stovetops, and standard refrigerators.

Bathrooms The units generally feature average quality bathroom finishes relative to typical units in similar walk up buildings in the area. The units typically contain vinyl tile flooring, bathtub shower combo tubs, laminate top set in cabinet sinks, and ceramic toilets.

Bedrooms The units generally feature average quality bedroom finishes relative to typical units in similar walk up buildings in the area. The units typically contain vinyl plank and carpet flooring, and sheet rock walls.

ATTACHMENT 6