Clovis City Council
November 3, 2025

November 03, 2025 - 1 - 2:45 PM A G E N D A • C I T Y C O U N C I L M E E T I N G

November 3, 2025 6:00 PM Council Chamber

In compliance with the Americans with Disabilities Act, if you need special assistance to access the City Council Chamber to participate at this meeting, please contact the City Clerk or General Services Director at (559) 324 -2060 (TTY – 711). Notificatio n 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the Council Chamber.

The Clovis City Council meetings are open to the public at the physical address listed above. There are numerous ways to participate in the City Council meetings: you are able to attend in person; you may submit written comments as described below; and you may view the meeting which is webcast and accessed at www.clovisca.gov/agendas.

Written Comments

 Members of the public are encouraged to submit written comments at:
www.clovisca.gov/agendas at least two (2) hours before the meeting (4:00 p.m.). You will be prompted to provide:

 Council Meeting Date
 Item Number
 Name
 Email
 Comment

 Please submit a separate form for each item you are commenting on.

 A copy of your written comment will be provided to the City Council noting the item number.

If you wish to make a verbal comment, please see instructions below.

 Please be aware that any written comments received that do not specify a particular agenda item will be marked for the general public comment portion of the agenda.

 If a written comment is received after 4:00 p.m. on the day of the meeting, efforts will be made to provide the comment to the City Council during the meeting. However, staff cannot guarantee that written comments received after 4:00 p.m. will be provided to City Council during the meeting. All written comments r eceived prior to the end of the meeting will be made part of the record of proceedings.

Council Chamber, 1033 Fifth Street, Clovis, CA 93612 (559) 324-2060 www.clovisca.gov
1 November 03, 2025 - 2 - 2:45 PM CAMPAIGN CONTRIBUTION PROHIBITIONS AND MANDATORY DISCLOSURE – Pursuant to Government Code section 84308, a Councilmember shall not accept, solicit, or direct a campaign contribution of more than $500 from any party or their agent, or from any participant or their agent, while a proceeding involving a license, permit, contract, or other entitlement for use is pending before the City or for 12 months after a final decision is rendered in that proceeding. Any Councilmember who has received a campaign contribution of more than $500 within the preceding 12 months from a pa rty or their agent, or from a participant or their agent, must disclose that fact on the record of the proceeding and shall not make, participate in making, or in any way attempt to use their official position to influence the decision.

Pursuant to Government Code section 84308, subdivision (e), any party to a covered proceeding before the City Council is required to disclose on the record of the proceeding any campaign contribution, including aggregated contributions, of more than $500 made within the pre ceding 12 months by the party or their agent to any Councilmember. The disclosure shall be made as required by Government Code Section 84308, subdivision (e)(1) and California Code of Regulations, Title 2, section 18438.8. No party or their agent, and no p articipant or their agent, shall make a campaign contribution of more than $500 to any Councilmember during the covered proceeding or for 12 months after a final decision is made in that proceeding. The foregoing statements do not constitute legal advice, and parties and participants are urged to consult with their own legal counsel regarding the applicable requirements of the law.

CALL TO ORDER

FLAG SALUTE - Mayor Pro Tem Pearce

ROLL CALL

PRESENTATIONS/PROCLAMATIONS

1. Presentation of Proclamation Honoring MachineHead Brewery for Its Outstanding Achievement at the 2025 Great American Beer Festival.

PUBLIC COMMENTS - This is an opportunity for the members of the public to address the City Council on any matter within the City Council’s jurisdiction that is not listed on the Agenda. In order for everyone to be heard, please limit your comments to 3 minutes or less, or 10 minutes per topic. Anyone wishing to be placed on the Agenda for a specific top ic should contact the City Manager’s office and submit correspondence at least 10 days before the desired date of appearance.

CONSENT CALENDAR - Items considered routine in nature are to be placed upon the Consent Calendar. They will all be considered an d voted upon in one vote as one item unless a Councilmember requests individual consideration. A Councilmember’s vote in favor of the Consent Calendar is considered and recorded as a separate affirmative vote in favor of each action listed. Motions in fa vor of adoption of the Consent Calendar are deemed to include a motion to waive the reading of any ordinance or resolution on the Consent Calendar. For adoption of ordinances, only those that have received a unanimous vote upon introduction are considered Consent items.

2. Administration - Approval - Minutes from the October 13, 2025, Joint Meeting with CUSD and the October 20, 2025, Council Meeting.
2 November 03, 2025 - 3 - 2:45 PM

3. Administration – Approval – Approve the Affordable Housing Program Loan Repayment Policies and Procedures Manual for loans made with Local Program Funds.

4. Administration – Approval – HOME First-Time Homebuyer Program Guidelines, and accompanying implementing documents.

5. Administration – Approval – Res. 25 -___, Authorizing the City of Clovis to Renew participation in the Fresno/Clovis Tourism Business Improvement District (FCTBID).

6. General Services - Approval - Waive the City’s Usual Purchasing Requirements and Authorize the City Manager to Approve the Purchase of Four (4) Electric Dodge Ram ProMasters for $1,361,697.48, Utilizing the California Association for Cooperative Transportation (CalACT) Competitive Bid Award ; and Approval – Res. 25 -___, Amending the FY 2025 -26 General Services Department Transit Fund Budget to Include CMAQ and STA Funding for the Vehicle Purchase.

7. General Services – Approval – Authorize the City Manager to Execute the Second Amendment to Spare Labs, Inc., Agreement for an Amount Not to Exceed $60,000 to Account for Additional Vehicles on the Spare Platform; and add the Spare One Trip Module for Fixed-Route and Microtransit Service Expansion.

8. General Services – Approval - Res. 25 -___, Authorizing Amendments to the City’s Classification and Compensation Plans to Adopt a Lead Community Service Officer with a Salary Range of $6,357 - $7,727 per month; and Approval – Res. 25 -___, Amending the City’s FY 2025 -26 Position Allocation Plan by adding three (3) Lead Community Service Officer positions and deleting three (3) Community Service Officer positions.

9. General Services – Approval - Claim Rejection of the General Liability Claim on behalf of Mercedes Trevino.

10. Planning and Development Services – Approval – Final Acceptance for CIP 20-12, Peach and Shepherd Traffic Signal, with a final contract cost of $757,424.94.

11. Planning and Development Services – Approval – Final Acceptance for CIP 25-03 Peg Bos Plaza Improvements, for a final contract cost of $149,643.99.

12. Planning and Development Services – Approval – Final Acceptance for Final Map for Tract 6284, acceptance of public improvements with authorization to record the Notice of Completion, and authorize the release of sureties, located at the southwest area of Teague Avenue and Fowler Avenue (Woodside 06N, LP (Woodside Homes)).

13. Planning and Development Services – Approval – Final Acceptance for Final Map for Tract 5168 acceptance of public improvements with authorization to record the Notice of Completion, and release of sureties as required, located at the southeast corner of Gettysburg Avenue and Locan Avenue (Pulte Group).

14. Planning and Development Services - Approval – Res. 25 -___, Annexation of Miscellaneous Properties to the Landscape Maintenance District No. 1.

15. Public Utilities – Approval – Award the Request for Proposals and Approve the Purchase of the Fleet Asset Management Software Five (5) Year Subscription from AssetWorks, Inc., for a Total of $344,051.37.

3 November 03, 2025 - 4 - 2:45 PM PUBLIC HEARINGS - A public hearing is an open consideration within a regular or special meeting of the City Council, for which special notice has been given and may be required. When a public hearing is continued, noticing of the adjourned item is required as per Government Code 54955.1.

16. Consider Approval - Res. 25 -___, Resolution of Necessity to determine that public interest and necessity require acquisition of property for public purposes and; authorizing proceedings in eminent domain for property located North of Nees Avenue, West of Armstrong Avenue.

Staff: Ryan C. Burnett, AICP, Engineering Program Supervisor Recommendation: Approve

ADMINISTRATIVE ITEMS - Administrative Items are matters on the regular City Council Agenda other than Public Hearings.

17. Workshop – Presentation on Draft 2025 Water Rate Study Findings.

Staff: Kevin Tuttle, Assistant Public Utilities Director Recommendation: Receive and File

CITY MANAGER COMMENTS

COUNCIL COMMENTS

CLOSED SESSION - A “closed door” (not public) City Council meeting, allowed by State law, for consideration of pending legal matters and certain matters relat ed to personnel and real estate transactions.

18. Government Code Section 54956.9(d)(2)

CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Significant exposure to litigation
One potential case

RECONVENE INTO OPEN SESSION AND REPORT FROM CLOSED SESSION

ADJOURNMENT

FUTURE MEETINGS

Regular City Council Meetings are held at 6:00 P.M. in the Council Chamber. The following are future meeting dates:

Nov. 10, 2025 (Mon.)
Nov. 17, 2025 (Mon.)
Dec. 1, 2025 (Mon.)
Dec. 8, 2025 (Mon.)
Dec. 15, 2025 (Mon.)

4 Honoring MachineHead Brewing Co. for Its Outstanding
Achievement at the 2025 Great American Beer Festival

WHEREAS, On November 14, 2020, Robert and Jennifer Arabian proudly opened MachineHead Brewing Co., bringing exceptional craft beer, community spirit, and local pride to the residents and visitors of Clovis; and

WHEREAS, since its founding, MachineHead Brewing Co. has become a cornerstone of the Clovis craft beer community, recognized for its innovation, craftsmanship, and dedication to excellence in brewing; and

WHEREAS, MachineHead Brewing Co. recently earned national recognition by winning the Bronze Medal at the 2025 Great American Beer Festival for its beer “Punk Fuzz” in the Contemporary Gose category; and

WHEREAS, this achievement is particularly remarkable given that the 2025 Great American Beer Festival featured 8,315 entries from 273 breweries and cideries in 108 categories; and

WHEREAS, MachineHead Brewing Co. is the first and only brewery in the City of Clovis to earn a medal at this prestigious national competition, thereby bringing home an award of excellence and distinction to our community; and

WHEREAS, the City of Clovis is proud to recognize and commend MachineHead Brewing Co. for its significant contribution to the local economy, its commitment to quality and creativity, and for representing Clovis with pride on a national stage.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Clovi s does hereby recognize and congratulate
MachineHead Brewing Co.

for its outstanding achievement at the 2025 Great American Beer Festival and extends sincere appreciation for its continued contributions to the community and the craft beer industry.

IN WITNESS THEREOF, I hereunto set my hand and cause the official seal of the City of Clovis to be affixed this 3rd day of November 2025.

_______________________________
Vong Mouanoutoua, Mayor
5 AGENDA ITEM NO. 1.

PRELIMINARY - SUBJECT TO APPROVAL

CLOVIS CITY COUNCIL / CLOVIS UNIFIED SCHOOL DISTRICT GOVERNING

BOARD JOINT MEETING

October 13, 2025 6:00 P.M. Council Chamber

Meeting called to order by Mayor Mouanoutoua at 6:00

Flag Salute led by Board President Yolanda Moore

Roll Call: Present: Councilmembers Ashbeck, Basgall, Bessinger, Mayor Pro Tem Pearce Mayor Mouanoutoua

Roll Call: Present: Board Members Madsen, Oliver, Hashimoto, President Moore.

Superintendent Folmer, Ed.D.

Absent Board members Fogg, Awtrey, Combs-Flores.

INTRODUCTIONS - 6:02
Members of the Clovis City Council and the Clovis Unified School District Board of Trustees, along with the Superintendent, were introduced.

PRESENTATION – 6:06

6:06 – ITEM 1 - Presentation of Proclamation declaring “Clovis on Tour” The Official Children’s Book of the City of Clovis.

6:20 – ITEM 2 - Presentation by Miss California Rachel Axt on her Miss America Pageant experience.

PUBLIC COMMENTS – 6:26

Eric Rollins, resident, thanked both the City Council and School Board for working together and emphasized how their collaboration benefits the community.

Marcos Rodriguez , student, asked how the recent federal government shutdown might affect student financial aid and scholarships.

Christopher Flores, Clovis West student, requested that water be made more accessible to students at Clovis West High School without paying for it.

Magdalena, Clovis West student , s uggested making basic medications like Tyl enol or allergy medicine more accessible for students who may struggle to get a doctor’s appointment.

Lorenzo Rios CEO with Clovis Veterans Memorial District, expressed gratitude for community support of “The Wall That Heals” event and shared upcoming memorial district initiatives and community collaborations.
6 AGENDA ITEM NO. 2.

PRELIMINARY - SUBJECT TO APPROVAL

Steven Trevino, resident, suggested adding flowers near the Civic Center sign, raised concerns about swings in parks due to safety, and recommended creating a YouTube video to explain how City Council meetings and the Brown Act work for the public.

Dr. Ken Smith with California Health Sciences University, requested collaboration opportunities with the school district to encourage students to pursue medical careers and promote the local medical program.

6:38 ITEM 1. Partnership on parades (buses, bands participating).

Superintendent Dr. Folmer explained the strong partnership between the City and the School District, highlighting the use of school buses for parades both for safety and community pride and the participation of student bands and performing groups. Superintendent Dr. Folmer emphasized how proud the district is of its transportation team and students and shared that Clovis High’s band was selected to perform in the 2027 Rose Parade.

Upon call, there was no public comment.

6:40 ITEM 2. Evolve security at large scale events in CUSD.

Associate Superintendent, Administrative Services Johnston presented on the implementation of the Evolve security screening system at large events such as football games and swim meets. He explained that the system is used in major venues like SoFi Stadium, speeds up entry, can detect weapons while allowing normal items like phones and keys, and provides visual alerts so security knows exactly where to check. He also noted that officers are stationed at every entry point and that similar security measures like security film on windows are being added across schools.

Upon call, there was no public comment.

6:46 ITEM 3. E-bikes and scooters; update on communication sent out and report on Youth Commission project.

Chief Fleming; Economic Development, Housing, and Communications Director McCollum, and Corporal O’Brien outlined a joint City –Clovis Unified education effort on e -bike and e -scooter safety, including a summer social media campaign, media outreach, and upcoming Youth Commission projects. Economic Development, Housing, and Communications Director McCollum mentioned the Youth Commission is developing youth-focused ideas such as helmet giveaways, tagging bikes with safety flyers, and student -led social content. Corporal O’Brien reviewed basic legal distinctions among e-bike classes, e-motorcycles, golf carts, and low-speed electric vehicles, plus where each can operate.

Brian Wilson, resident, asked how many citations have been issued for e-bike/e-scooter violations in the past year.

Steven Trevino, resident, suggested a bike license or permit program with police -led safety education like the city offered in the past.

7 AGENDA ITEM NO. 2.

PRELIMINARY - SUBJECT TO APPROVAL

Erin Wink, resident, described unsafe pickup/drop-off behavior near Clovis Elementary after road widening and urged stronger parent education and traffic enforcement.

7:02 ITEM 4. City of Clovis Police Department Mental Health & Drug Awareness Efforts.

Chief Fleming presented the item to Council and spoke regarding the long-standing partnership with Clovis Unified, noting that school buses have been used since 2017 as security barriers for parade safety, and thanked the district for continued collaboration. He outline d the Police Department’s new mental health initiatives, including the addition of a Mental Health Liaison Officer who follows up with individuals and families outside of crisis situations, resulting in a 30% reduction in mental health calls. He shared tha t the Youth Commission will also be addressing youth mental health issues in the youth community. He spoke about the opioid settlement that allowed the department to hire a Community Service Officer to provide drug education in schools.

Additional settlement funds will be used to purchase software to track overdoses and integrate school district and city cameras into the real -time information center, improving emergency response. The City Council encouraged including cyberbullying as part of mental health e fforts and emphasized that Measure Y and the partnership with Clovis Unified make these investments possible

Upon call, there was no public comment.

7:09 ITEM 5. Updates on Projects/Construction.

City Engineer Avery discussed the City completed a high volume of street work over the summer, focusing on neighborhoods and streets near schools, including Cape Seal projects around Sierra Vista and Gettysburg and repaving eight street segments. A new traffic signal at Shepherd and Peach is now operational, an d next summer the city expects fewer major repairs overall but several key projects near Clovis East: widening Ashlan west of Leonard, sidewalk and curb/gutter at Gettysburg and Leonard, and potential Shaw Avenue improvements between Leonard and DeWolf. Larger regional projects such as widening Shepherd between Fowler and Sunnyside and improvements north of Minnewawa are expected to begin next spring and will require coordinated traffic management to lessen public impact. Additional work includes a water li ne on Clovis Avenue near Nees and ongoing coordination with developers for infrastructure in growing areas.

Assistant Superintendent Stairs reported its busiest construction summer in recent history, including opening Phase 1 of the Terry Bradley Educatio nal Center and continuing work on Phases 3–6, with more openings coming over the next few years . He mentioned a t Fowler and Herndon, Phase 1 is complete, and Phase 2 (Plant Operations relocation) will open in March; Phase 3 Child Development offices is in design and expected to bid in December . The district is working with the City on approval of a warehouse to store visual and performing arts sets so they can be reused instead of destroyed. The transportation facility will undergo a major modernization once Plant Ops relocates . Security upgrades funded by prior bond measures are ongoing, including Catapult emergency alerts, districtwide lockdown technology with automatic door locks, and installation of delayed-entry security window film tested with Clovis P olice Department. The district is also advancing the Gettysburg fence solution and preparing to launch multiple school modernization projects with bond funds beginning this summer.

8 AGENDA ITEM NO. 2.

PRELIMINARY - SUBJECT TO APPROVAL

City Council stressed the importance of long -awaited sidewalks near school s especially around Clovis East, Reagan Elementary/Ashlan, and Freedom/Armstrong areas and acknowledged safety concerns for students walking in muddy or narrow areas. They highlighted past collisions on Fowler/Barstow and emphasized keeping route safety a priority. Measure C was discussed as a future funding source for “Safe Routes to School” projects, which would allow the City and District to partner on sidewalks and crossings near campuses. Concerns were raised about traffic impacts when Shepherd is clos ed and whether Fowler could become a dangerous detour; staff noted enforcement is often the only effective speed control. Additional concerns were raised about missing sidewalks on Armstrong between Gettysburg and Ashlan, and staff discussed how development or Measure C could be used to fill those gaps.

Brian Wilson, resident, expressed concern about traffic at Fowler and Herndon, asking why there isn’t a northbound turn lane into the new facility, how much traffic future phases will add, and whether access to Herndon will be available.

7:27 ITEM 6. Update on State Meets.

Superintendent Dr. Folmer discussed Clovis Unified currently hosts the State Swim & Dive Meet, operates the State Cross Country Meet at Woodward Park for Fresno County, and hosts the State Track & Field Championships. Dr. Fulmer explained that the bids to host these events will reopen soon, and Clovis Unified intends to reapply because hosting benefits the community economically, highlights local facilities, and allows student-athletes to compete at home. She shared that these events draw state and national -level athletes, set records, and rely on hundreds of community volunteers, making it a meaningful partnership with the City of Clovis.

Upon call, there was no public comment.

7:32 ITEM 7. CITY MANAGER / SUPERINTENDENT COMMENTS

City Manager Haussler praised the partnership with Clovis Unified, highlighted how rare and special this level of collaboration is, and expressed appreciation for the relationship and shared goals that benefit the community.

Superintendent Dr. F olmer echoed gratitude, emphasized how both entities proactively work together to address community needs as both the city and district grow, and shared the importance of preserving tradition while planning for the future and supporting youth.

7:35 ITEM 8. COUNCIL / BOARD COMMENTS

School Board Members thanked the City for hosting, praised the strong partnership and ability to solve problems together quickly (e.g., e-bikes), and noted that this collaboration is rare compared to other cities. They also appreciated community support for programs like Miss Clovis and bond measures that fund facilities.

Council Members shared personal experiences of Clovis Unified’s positive statewide/national reputation, emphasized a ccessibility and teamwork between city and district, and reported on community events such as the Wall That Heals, senior center issues, economic development efforts, and youth mentorship programs. The Council highlighted the importance of planning long- 9 AGENDA ITEM NO. 2.

PRELIMINARY - SUBJECT TO APPROVAL

term together (50 years out), supporting Measure C, addressing traffic and recreation needs, and ensuring future growth north of Shepherd stays within Clovis Unified.

ADJOURNMENT – 7:56

Mayor Mouanoutoua adjourned the meeting of the Council to October 20, 2025.

Meeting adjourned: 7:56 p.m.

______________________________ ________________________________ Vong Mouanoutoua, Mayor Briana Parra, City Clerk
10 AGENDA ITEM NO. 2.

PRELIMINARY - SUBJECT TO APPROVAL

CLOVIS CITY COUNCIL MEETING

October 20, 2025 6:00 P.M. Council Chamber

Meeting called to order by Mayor Mouanoutoua at 6:00
Flag Salute led by Councilmember Bessinger

Roll Call: Present: Councilmembers Ashbeck, Basgall, Bessinger, Mayor Pro Tem Pearce Mayor Mouanoutoua

PUBLIC COMMENTS – 6:01

Steven Trevino, resident, commended the Council for last week’s CUSD Joint meeting and requested that the City consider placing a memorial at the corner of Sunnyside to honor Andrew Reese, Mr. Perkins, and other longtime community members who contributed to Clovis.

CONSENT CALENDAR – 6:05

Bill Scott, resident, commented on Consent Calendar items 9 -12, expressing concern about revisions, renaming, and adoptions of positions, urging caution in how funds and staffing changes are handled.

Motion by Councilme mber Ashbeck, seconded by Councilmember Bessinger, that the items on the Consent Calendar be approved. Motion carried by unanimous vote.

1. Administration - Approval - Minutes from the October 6, Council Meeting.

2. Administration - Receive and File – Annual Report regarding status of the Affordable Housing Development Impact Fee Deferral Program for the 2024-2025 Fiscal Year.

3. Finance – Receive and File – Investment Report for the Month of June 2025.

4. Finance – Receive and File – Treasurer’s Report for the Month of June 2025.

5. Finance - Approval – Res. 25-106, Amending the 2025 -26 Budget to reappropriate carryover funding from the 2024-25 budget.

6. General Services – Approval - Claim Rejection of the General Liability Claim by LaToya Lewis.

7. General Services – Approval - Claim Rejection of the General Liability Claim on behalf of April Gallardo.

8. General Services – Approval - Claim Rejection of the General Liability Claim on b ehalf of Delilah Casarez.

9. General Services – Approval – Res. 25 -107, Authorizing Amendments to the City’s Classification and Compensation Plans by Revising and Renaming the Classification of Building Inspector to Building Inspector I with a Monthly Salary Range of $6,219 to $7,560, Revising the Senior Building Inspector with a Monthly Salary Range of $8,227 to $10,000, and by Adopting the Classification of Building Inspector II with a Monthly Salary Range of $6,969 to $8,470, in the Planning and Development Services Department, and Approval – Res. 25-108, Amending the City’s FY 25-26 Position Allocation Plan.

10. General Services – Approval – Res. 25 -109, Authorizing Amendments to the City’s Classification and Compensation Plans by Revising and Renaming the Classification of 11 AGENDA ITEM NO. 2.

PRELIMINARY - SUBJECT TO APPROVAL

Permit Technician to Permit Technician I with a Monthly Salary Range of $4,869 to $5,918, Adopting the Classification of Permit Technician II with a Salary Range of $5,869 to $7,134, and Adopting the Classification of Senior Permit Technician with a Monthly Salary Range of $6,474 to $7,870, in the Planning and Development Department, and Approval – Res. 25-110, Amending the City’s FY 25-26 Position Allocation Plan.

11. General Services – Approval – Res. 25 -111, Authorizing Amendments to the City’s Classification and Compensation Plans by Revising and Renaming the Classification of Plans Examiner to Plans Examiner I with a Monthly Salary Range of $6,321 to $7,683, Adopting the Classification of Plans Examiner II with a Salary Range of $7,321 to $8,899, and Adopting the Classification of Senior Plans Examiner with a Monthly Salary Range of $8,227 to $10,000, in the Planning and Development Department, and Approval – Res. 25- 112, Amending the City’s FY 25-26 Position Allocation Plan.

12. General Services – Approval - Res. 25 -113, Authorizing Amendments to the City’s Classification and Compensation Plans to Adopt a Communications and Marketi ng Specialist with a Salary Range of $6,021- $7,319 per month; and Approval – Res. 25-114, Amending the City’s FY 2025 -26 Position Allocation Plan by adding one (1) Communications and Marketing Specialist.

13. Planning and Development Services – Approval – Final Acceptance for CIP 24-05 Barstow Avenue Street Improvements, for a final contract cost of $714,181.14.

14. Public Utilities – Approval – Bid Award for CIP 24 -28 Loma Vista Recharge Basin Park Demo to David Knott, Inc., in the Amount of $178,128; and Authorize the City Manager to Execute the Contract on Behalf of the City.

15. Public Utilities – Approval – Waive Formal Bidding Requirements and Authorize the Purchase of a Landfill Automatic Tarping Machine from Tarp O Matic, Inc., in the Total Amount of $90,831.90.

16. Public Utilities – Approval – Waive Formal Bidding Requirements and Authorize the Purchase of a Vactor Hydro -Excavator Truck from Haaker Equipment Company Utilizing the Sourcewell Purchasing Contract in the Total Amount of $723,753.10.

17. Public Utilities – Approval – Waive Formal Bidding Requirements and Award a Contract to Aqua-Metric Sales Company for the Purchase and Installation of Two Sensus Base Stations and Associated Software in the Amount of $181,787.63, and Authorize the City Manager to Execute the Contract on Behalf of the City.

18. Public Utilities – Approval – Res. 25-115, Authorizing the Public Utilities Director to Approve and Execute Agreements and Other Instruments Incidental to Right -of-Way, Regulatory, Operational, and Maintenance Programs and Projects Approved by the City Council, and Accept and Consent to Recording Grants of Real Property Interests to the City for Public Purposes as Authorized by Government Code Section 27281.

PUBLIC HEARINGS – 6:10

6:10 ITEM 19 - Consider Approval - Res. 25-116, SPR2025-029, Adopting a Class 1 Categorical Exemption from further environmental review under the California Environmental Quality Act; and Approving a site plan review for the site layout and design of the Big Dry Creek Trail Improvements at Letterman Park, Barstow Avenue and Villa Avenue. City of Clovis, Owner and Applicant.

Steven Trevno, resident, asked several questions regarding Leon Park and the nearby trail project.

12 AGENDA ITEM NO. 2.

PRELIMINARY - SUBJECT TO APPROVAL

Motion for approval by Councilmember Ashbeck, seconded by Councilmember Basgall. Motion carried by unanimous vote.

6:27 ITEM 20 - Consider Approval - Res. 25 -117, Resolution of Necessity to determine that public interest and necessity require acquisition of property for public purposes; and Authorize proceedings in eminent domain for property located North of Shepherd Avenue, West of Fowler Avenue.

Upon call, there was no public comment.

Motion for approval by Councilmember Ashbeck, seconded by Councilmember Bessinger. Motion carried by unanimous vote.

ADMINISTRATIVE ITEMS – 6:34

6:34 ITEM 21 - Consider Approval – Res. 25-118, Amending License Fees for Gaming Clubs and Card Rooms in the City.

Jarrod with Clovis 500 Club spoke on behalf of the Clovis 500 Club, thanking city staff for their continued support and collaboration.

Motion for approval by Councilmember Bessinger, seconded by Mayor Pro Tem Pearce. Motion carried by unanimous vote.

CITY MANAGER COMMENTS – 6:43

City Manager Haussler reported the installation of a new sign at David McDonald Park, honoring McDonald’s contributions to Clovis, including his support for Miss Winkle’s Pet Adoption Center and local job creation. He invited the public to upcoming events and meetings, including the Planning Commission meeting, a counte rtop compost pail giveaway at Letterman Park, the General Plan Advisory Committee meeting on October 30 , 2025, and encouraged residents to participate in the Community Needs Survey for the next five-year Community Development Block Grant plan.

COUNCIL COMMENTS – 6:45

There was no formal Council direction for staff.

CLOSED SESSION – 6:51

Upon call, there was no public comment.

ITEM 22 - GOVERNMENT CODE SECT ION 54957.6 CONFERENCE WITH LAB OR NEGOTIATORS AGENCY DESIGNATED RE PRESENTATIVES: ANDREW HAUSSLER, PAUL

ARMENDARIZ, AMY HANC E, JAY SCHENGEL, SCO TT CROSS EMPLOYEE ORGANIZATIONS: TRANS IT EMPLOYEES BARGAIN ING UNIT, CLOVIS PUB LIC SAFETY

EMPLOYEES ASSOCIATION, CLOVIS POLICE OFF ICERS ASSOCIATION, C LOVIS PUBLIC

WORKS EMPLOYEES ASSOCIATION, AND UNREPRESENTED EMPLOYEES 13 AGENDA ITEM NO. 2.

PRELIMINARY - SUBJECT TO APPROVAL

ITEM 23 - GOVERNMENT CODE SECTION 54956.8 CONFERENCE WITH REAL PROPERTY NEGOTIATORS PROPERTY : APN 580 -072-41S, S OUTHWEST CORNER OF MINNEWAWA/INTERNATIONAL AGENCY NEGOTIATO RS: ANDREW HAUSSLER, SCOTT CROSS, RYAN BURNETT, AND AMY HANCE NEGOT IATING PARTIES: HGCL OVIS, LLC UNDER NEGOTIATION: PRICE AND TERMS OF PAYMENT

RECONVENE INTO OPEN SESSION AND REPORT FROM CLOSED SESSION

No action taken.

ADJOURNMENT

Mayor Mouanoutoua adjourned the meeting of the Council to November 3, 2025.

Meeting adjourned: 7:25 p.m.

______________________________ ________________________________ Mayor City Clerk
14 AGENDA ITEM NO. 2.

TO: Mayor and City Council
FROM: Administration
DATE: November 3, 2025
SUBJECT: Administration – Approval – Approve the Affordable Housing Program Loan Repayment Policies and Procedures Manual for loans made with Local Program Funds.

ATTACHMENTS: 1. Affordable Housing Program Loan Repayment Policies and Procedures Manual

RECOMMENDATION
For the City Council to Approve the Affordable Housing Program Loan Repayment Policies and Procedures Manual for loans previously made with Local Program Funds.

EXECUTIVE SUMMARY
The Repayment Policies and Procedures will provide processing procedures for loans that are due and payable through the City’s Affordable Housing Program, and who have received funding from local resources. The loans were made with funding previously referred to as Tax Increment Financing or Redevelopment Agency Loans.

BACKGROUND
Currently there are approximately 66 loans in the local funding portfolio still due, for a total of $3,254,485 due to the City. Of these, 10 loans are currently due and payable, or will become due and payable in the next two months.

As loans made from local financing have become due and payable, staff has found the need to delay the request for payments due to borrowers expressing their financial hardship. The City currently does not have written policies and procedures that guide repayment processes for these loans, including additional remedies for low -income borrowers and those with fi nancial hardship. The Repayment Policies and Procedures Manual for City Council consideration will provide clear guidance to staff on implementing loan repayment policies for those loans made with local financing.

For loans currently due, City staff will send the borrower a Demand for Payment, and present financial hardship remedies, if applicable. The Repayment Policies and Procedures outline when and how borrowers can request additional assistance based on the Borrower’s current financial situation and hardships.

15 AGENDA ITEM NO. 3.

The following scenarios are included in the repayment guidelines:

IF AT LOAN DUE DATE:

Borrower is low
income (80% or
below AMI) AND
continues to live in
home:

Borrower has income
between 80-120%
AMI AND continues
to live in home:

Borrower has income
over 120% AMI, has
financial hardship
AND continues to live
in home:

Borrower no longer
lives at assisted
home, Borrower
unwilling to provide
income information, or
other Borrower
Default:
- Extend loan for 20
years
- All other terms
remain the same

- Restructure loan to
require payments
over 15 years
(payments made
twice a year)
- All other terms
remain the same
- Restructure loan to
require payments
over 10 years
(payments made
twice a year)
- All other terms
remain the same
Loan is immediately
due and payable

Borrowers requesting modifications to their loans will be required to submit income verification documents to be reviewed and verified by City staff. The City may send the loan to a collection agency if Borrower fails to make payment(s) on time, or if there is no response from Borrower within 90 days of the loan due date . The City may also have the option of foreclosing on the property, as may be allowed in the Original Loan Documents.

These guidelines to not apply to state or federally funded loans, as those must follow funding agency repayment guidelines.

FISCAL IMPACT
There is no fiscal impact related to approval of the Manual. Any loans repaid are treated as program income and re-utilized for new affordable housing loans.

REASON FOR RECOMMENDATION
Staff recommends approval of the Repayment Policies and Procedures Manual to provide staff uniform policies in the implementation of local Loan Repayment Guidelines.

ACTIONS FOLLOWING APPROVAL
Several loans have become due and payable. These borrowers will be contacted and provided the repayment options available through this action.

CONFLICT OF INTEREST
None.

Prepared by: Claudia Cazares, Housing Program Manager

Reviewed by: City Manager AH
16 AGENDA ITEM NO. 3.

Attachment 1 Page 1 of 10

City of Clovis – Affordable Housing Program
Loan Repayment Policies and Procedures Manual
“LOCAL PROGRAM FUNDS”

The City of Clovis ("City") administers affordable housing programs that provide financial assistance to low -income families to either purchase their first home or repair their existing home. Assistance is provided as a loan, and the loans are typically in the form of silent second financing, down payment assistance, closing cost assistance, home improvement loans, or other similar loan products (“loan(s)”).

The City has adopted this Loan Repayment Policies and Procedures Manual (“Manual”) to provide staff guidance on actions needed when servicing loans and processing payments due only on loans assisted with “local program funds”. Loans made with “local program funds” refers to loans provided through programs previously referred to as Tax Increment Program F unds, Redevelopment Agency (RDA) Program F unds, C lovis Community Development Agency Program F unds, or any other local source that excludes any funds originating from the State of California or the Federal government, as those carry their own repayment policies and procedures.

Loans may carry various due dates, affordability periods, terms, conditions, and rates. This Manual will address various loan repayment circumstances, as found below.

I. Required/Amortized Loan Repayments:

For Promissory Notes that require regular (e.g. monthly) payments during the life of the loan, Borrower will be required to submit the monthly payments to the City of Clovis, as identified in Section VII below.

Late fees will be charged for payments received after the identified regular due date(s), as may be identified in the Promissory Note.

Any repayments received will be credited to the appropriate fund for future use. 17 AGENDA ITEM NO. 3.

II. Voluntary Loan Repayments
For Promissory Notes that do not require regular (e.g. monthly) payments (e.g. deferred payment loans) and for which Borrowers desire to make voluntary loan payments, the City will accept voluntary payments on the loan , on an annual basis, made payable to the City of Clovis, as identified Section VII below. The City may accept bi-annual payments, if pre-approved in writing by the City Manager, or designee, in advance.

The Borrower may repay the loan balance, and any interest as applicable, at any time with no penalty. Voluntary loan payments will be credited to any principal amount due first, then any interest due, then any penalties due. Partial /voluntary repayments will be an notated in the City’s loan portfolio, and individual homeowner file.

Any repayments received will be credited to the appropriate fund for future use.

III. Loan Repayments at Loan Due Date

When a Promissory Note becomes due and payable, Borrower will be required to immediately repay the entire amount of the loan, plus any interest and penalties.

This Section applies to Promissory Notes that have become due and payable for the following causes:

 End of loan term
 Borrower’s failure to maintain home as their principal place of residence during the affordability period as defined in the promissory note and/or loan agreement
 Borrower’s failure to provide annual proof of o ccupancy, property hazard insurance and property tax payment information, to the City, as required by the Promissory Note
 Borrower’s failure to meet other requirements of the Promissory Note, Loan Agreement, and/or Deed of Trust
 Upon death of Borrower(s) (for exception see Section IV.B below)  Other causes, as may be identified by City Staff in accordance with the Promissory Note, Loan Agreement and/or Deed of Trust.

NOTE: In some cases, Promissory Notes may specifically identify loan repayment guidelines at sale or transfer, including the treatment of net proceeds. In these cases, the requirements found in the Promissory Note will take precedence over this Manual.

18 AGENDA ITEM NO. 3.

A. The following steps are to be followed when loans are due and payable:

1. The City will send Borrower a Payoff Demand Letter, including a calculation of the loan amount due, plus applicable interest and/or penalties when the Note become s due and payable . The City will allow the Borrower ninety (90) days to repay the loan or seek additional assistance as may be provided below in Section III.B. below. City will send the loan to a collection agency if Borrower fails to make payment(s) on time, or if there is no response from Borrower within 90 days of the loan due date. The City may also have the option of foreclosing on the property, as may be allowed in the Original Loan Documents.

2. Borrower, or Borrower’s representative, shall issue a check made out to the City of Clovis, as identified in Section VII below.

3. Once the loan is paid in full, the City will draft and execute a Full Reconveyance and have the notarized reconveyance recorded at the County Recorder’s Office. The City will also locate the original Promissory Note and return it to Borrower, with “ PAID IN FULL ” noted on the face of the Note.

4. The loan will be noted as “PAID OFF” on the City‘s loan portfolio and the amount credited to the appropriate fund for future use.

B. Borrower(s) may request additional assistance when loans are due and payable, under the circumstances below.

1. Additional Assistance Scenario #1:

If original Borrower , and their household members (if any), is/are low- income (80% or below the Area Median Income (AMI)) at the time the loan becomes due and payable, and they are UNABLE to repay the loan due to financial hardship related to their income level, AND they continue to live in the home as their principal place of residence:

a. Borrower may request an extension of the term of the loan for up to an additional twenty (20) years.
b. The request for the term extension shall be in writing , be submitted to the City within 45 days of the Payoff Demand Letter, and include verification of income documents (see Exhibit A – Income Verification Requirements).
c. City staff will review the income verification documents submitted and compute the Borrower’s household income.
d. If City staff confirms Borrower’s household income is at or below 80% of the AMI, the loan extension request will be submitted to the Economic Development, Housing, and Communications
Director (“Director”) for review first, and subsequently to the City Manager, or designee, for approval and execution of loan documents.
19 AGENDA ITEM NO. 3.

e. All requirements, excluding the loan payment term, of the original Promissory Note, including but not limited to principal place of residency, payment of property taxes, maintenance of property hazard insurance, and annual proof of occupancy will remain in place under the extended loan terms.
f. City staff will then re-evaluate loan repayment due at the time the extension expires.
g. The loan will be noted as “term extended for 20 years ” on the City‘s loan portfolio and the loan due date updated.
h. Borrower may make voluntary loan repayments at any time. i. Any repayments received will be credited to the appropriate fund for future use.

2. Additional Assistance Scenario #2

If original Borrower , and their household members (if any), have income between 80 -120% of the AMI at the time the loan becomes due and payable, and they experience financial hardship in repaying the loan, AND they continue to live in the home as their principal place of residence:

a. Borrower may request a res tructure of the loan to require bi- annual payments amortized over a fifteen (15) year period. That is, any principal, interest, and penalties due at the time the loan is due and payable will be divide d by 30 payments to start after , and no later than 60 days after, the execution of the revised loan documents.
 Example: Principal, interest, and penalties due at the time loan is due and payable equals $45,000.00.
i. Calculation: $45,000 ÷ 30 (payments) =
$1,500 payment due twice a year for 15 years
b. The request for the restructure and loan extension shall be in writing, submitted to the City within 45 days of the Payoff Demand Letter, include a justification for Financial Hardship, and include verification of income documents (see Exhibit A – Income Verification Requirements).
c. City staff will review the income verification documents submitted and compute the Borrower’s household income.
d. If City staff confirms Borrower’s household income is between 80- 120% of the AMI, the loan amortization and extension request will be submitted to the Director for review first, and subsequently to the City Manager, or designee, for approval and execution of loan documents.

20 AGENDA ITEM NO. 3.

e. All requirements, excluding the loan payment term, of the original Promissory Note, including but not limited to principal place of residency, payment of property taxes, maintenance of property hazard insurance, and annual proof of occupancy will remain in place under the extended loan terms.
f. City staff will then re-evaluate loan repayment due at the time the extension expires.
g. The loan will be noted as “term extended to include bi -annual payment for 15 years ” on the City‘s loan portfolio and the loan due date updated.
h. City staff will add the loan to a bi-annual loan payment list for the issuance of bi -annual invoicing and/or issuance of payment coupons.
i. City will send the loan to a collection agency if Borrower fails to make payment(s) on time, or if there is no response from Borrower within 90 days of the loan due date , as may be amended. The City may also have the option of foreclosing on the property, as may be allowed in the Original Loan Documents. j. Borrower may make voluntary loan repayments or payment in full at any time.
k. Any repayments received will be credited to the appropriate fund for future use.

3. Additional Assistance Scenario #3

If original Borrower, and their household members (if any), have income that is over 120% of the AMI at the time the loan becomes due and payable, and they experience financial hardship in repaying the loan, AND they continue to live in the home as their principal place of residence:

a. Borrower may request a restructure of the loan to require bi - annual payments amortized over a ten (10) year period. That is, any principal, interest , and penalties due at the time the lo an is due and payable will be divided by 20 payments to start after, and no later than 60 days after , the execution of the revised loan documents.
 Example: Principal, interest and penalties due at the time loan is due and payable equals $45,000.00.
i. Calculation: $45,000 ÷ 20 (payments) =
$2,250 payment due twice a year for 10 years
b. The request for the restructure and loan extension shall be in writing, submitted to the City within 45 days of the Payoff Demand Letter, and include a justification for Financial Hardship. Income verification will only be required in Scenario 1 and 2 above.

21 AGENDA ITEM NO. 3.

c. City staff will review the request, including the justification for Financial Hardship.
d. The loan amortization and extension request will be submitted to the Director for review first, and subsequently to the City Manager, or designee, for approval and execution of loan documents.
e. All requirements, excluding the loan payment term, of the original Promissory Note, including but not limited to principal place of residency, payment of property taxes, maintenance of property hazard insurance, and annual proof of occupancy will remain in place under the extended loan terms.
f. City staff will then re-evaluate loan repayment due at the time the extension expires.
g. The loan will be noted as “term extended to include bi -annual payment for 1 0 years” on the City‘s loan portfolio and the loan due date updated.
h. City staff will add the loan to a bi-annual loan payment list for the issuance of bi-annual invoicing.
i. City will send the loan to a collection agency if Borrower fails to make payment(s) on time, or if there is no response from Borrower within 90 days loan due date, as may be amended. The City may also have the option of foreclosing on the property, as may be allowed in the Original Loan Documents.
j. Borrower may make voluntary loan repayments or payment in full at any time.
k. Any repayments received will be credited to the appropriate fund for future use.

IV. Failure to Retain Assisted Home as Owner Occupied Housing and/or Refusal to Submit Income Documentation
A. The loan is immediately due and payable if Borrower fails to retain the assisted home as Owner Occupied Housing.

B. The loan is immediately due and payable if Borrower does not request Additional Loan Repayment Assistance as identified in Section III.B above.

C. City will send the loan to a collection agency if Borrower fails to make payment(s) on time, or if there is no response from Borrower within 90 days of the loan due date, as may be amended. The City may also have the option of foreclosing on the property, as may be allowed in the Original Loan Documents.

22 AGENDA ITEM NO. 3.

V. Selling or Transferring Title of an Assisted Home

This policy will be followed upon sale or transfer of title of an assisted home. The sale/transfer of the home can include (but is not limited to):
 Voluntary Sale or Transfer, such as the decision of a Borrower to sell the property, or when the Borrower moves to another residence , where new owner is not low -income, and/or new owner will not live in the home as their principal place of residence.
 Transfer or sale can include selling the property , or transferring through inheritance, to a new low-income owner who will utilize the home as their principal place of residence
 Involuntary such as a foreclosure, a deed in lieu of foreclosure, or a short sale.

A. The following steps are to be followed before the Voluntary Sale or Transfer of the assisted home when the new owner is not low-income and/or will not live in the home as their principal place of residence:

1. Borrower, or Borrower’s representative, will submit a written Request for Payoff Demand to the City before the close of escrow or final transfer of property.

2. City will process the Request for Payoff Demand by calculating loan payoffs, including any applicable interest schedules, and/or penalties.

3. City will provide the calculation to the Borrower, Borrower’s representative, or escrow officer, with a “good until” date. a. If the loan repayment calculated amount isn’t paid off in full by the “good until” date, the Borrower will have to submit a new Request for Payoff Demand from the City.

4. Borrower, Borrower’s representative, or Title Company shall issue a check made out to the City of Clovis, as identified in Section VII below by the “good until” date.

5. Once the loan is paid in full, the City will draft and execute a Full Reconveyance and have the notarized reconveyance recorded at the Co unty Recorder’s Office. The City will locate the original Promissory Note and return it to Borrower, with “PAID IN FULL” noted on the face of the Note.

6. The loan will be noted as PAID OFF on the City‘s loan portfolio and the amount credited to the appropriate fund for future use.

B. The following steps are to be taken before transfer or sale of the assisted home, or transfer through inheritance, to a new low -income first-time homebuyer who will utilize the home as their principal place of residence (“eligible new owner”), who requests to assume the loan.

23 AGENDA ITEM NO. 3.

1. Borrower, or Borrower’s representative, will submit notification to the City that the Borrower proposes to sell/transfer the property to an “eligible” new owner.
a. An “eligible” new owner refers to a first-time eligible homebuyer, whose household income qualifies as low-income (80% or below the AMI)
b. This notification must be submitted before close of escrow, and/or before transfer of the property, and provide City staff with sufficient time (minimum of 20 working days) to qualify the new owner as “eligible.”
c. This notification must also include an application on a City approved form for assuming the loan, as well as income
verification documents (see Exhibit A – Income Verification Requirements).

2. City staff will review the application and income verification documents submitted to verify the eligibility of the new proposed buyer.

3. If City staff confirms the new buyer’s eligibility, the request to assume the loan will be submitted to the Director for review first, and subsequently to the City Manager, or designee, for approval and execution of loan documents.

4. All requirements , excluding the loan payment term, of the original Promissory Note, including but not limited to principal place of residency, p ayment of property taxes, maintenance of property hazard insurance, and annual proof of occupancy will remain in place under the assumed loan. A revised loan term of thirty (30) years will then be approved for the new eligible owner(s).

C. The following steps are to be taken when an involuntary transfer occurs, such as a foreclosure, auction, a deed in lieu of foreclosure or a short sale.

1. City shall be notified immediately if the Borrower is in default.

2. Remedies will be as allowed in the Original Borrower Loan Documents and as allowed by the State of California.

D. Upon sale/transfer of an assisted home that requires repayment of the City loan, the City will recapture the entire amount of the subsidy (the repayment), or assistance provided, plus any interest and penalties, before the Borrower receives a return. The recaptured amount is limited to the net proceeds available from the sale or foreclosure. In some cases, such as in declining housing markets, net proceeds available at the time of sale/transfer may not be sufficient to recapture the entire City subsidy plus interest/penalties due. The City will re capture only what is available from net proceeds.

E. In cases where there is appreciation in the value of the assis ted property, Borrower may retain any net proceeds exceeding the amount of the City subsidy plus interest/penalties due.
24 AGENDA ITEM NO. 3.

F. NOTE: In some cases, Promissory Notes may specifically identify loan repayment guidelines at sale or transfer, including the treatment of net proceeds. In these cases, the requirements found in the Promissory Note will take precedence over this Manual.

VI. Other Loan Requirements

When a transfer/sale from Borrower to owner-occupant occurs, including through inheritance, and the n ew owner-occupant is not low-income (80% or below the AMI), the loan is not assumable and the loan balance becomes immediately due and payable.

A c hange from owner -occupant to owner -investor occurs when an owner - occupant decides to move out and rent the assisted property, or if the property is sold to an investor. If the owner converts any assisted unit from owner -occupied to rental, the loan is due in full immediately.

Conversion to use other than residential use is not allowable where the full use of the property is changed from residential to commercial or other. In some cases, Borrowers may request that the City allow for a partial conversion where some of the residence is used for a business , but the household still resides in the property. Partial conversions can be allowed if reviewed and approved by any and all agencies required by local statute. If the use of the property is converted to a fully non-residential use, the loan balance is due and payable.

This policy is not applicable to rental properties.

VII. Review and Appeals
The Department Director overseeing the Affordable Housing Programs will provide final staff level recommendation for approval of any requests included in this Manual. Recommendations for approval will be submitted to the City Manager, or designee, for final approval.

Requests/applications not recommended for City Manager approval will be provided a detailed explanation in writing identifying an explanation for the denial.

Appeals may be submitted in writing to the City Manager’s office within 30 days of the decision by staff. The City Manager , or designee, will review the appeal and provide a final determination. The determination by the City Manager shall be final.

VIII. Loan Payments

Any loan payments shall be made to:

City of Clovis
1033 Fifth Street
Clovis, CA 93612

*Borrower’s First and Last Name, Property Address and Loan Number (if available) should be identified in the repayment paperwork so that it may be applied correctly. 25 AGENDA ITEM NO. 3.

EXHIBIT A

INCOME VERIFICATION REQUIREMENTS

Insert from OOR Program

26 AGENDA ITEM NO. 3.

Exhibit A

INCOME VERIFICATION

1. Borrower is required to complete an application form, which asks for information concerning income, assets, employment, household members, and income of household members to establish eligibility for participation.

2. All applications will be processed in accordance with state and federal fair lending regulations to ensure nondiscriminatory treatment, outreach, and access to the Program.

No person shall be excluded or denied participation in the program on the grounds o f age, ancestry, color, creed, physical or mental disability or handicap, marital or familial status, medical condition, national origin, race, religion, gender or sexual orientation.

3. Applications are date/time stamped when received by the City and reviewe d for completeness and eligibility. Incomplete applications are returned to the borrower with an opportunity for the borrower to resubmit. The City will request any additional documentation to determine income eligibility, as needed. a. If the City encounter s material discrepancies and/or misrepresentations, during Program eligibility confirmation, and/or there is income, asset, household composition, or other important questions that can't be resolved, the City reserves the right to deny assistance to the borrower.

4. The City will confirm borrower eligibility, by verifying income qualification, homeownership and owner-occupancy.

5. Verifying Income Qualification - To be eligible to participate in the Program, gross household annual income must not as identified in the Program guidelines , which is adjusted for household size and reported in the most current income guidelines published by HCD.

6. Income Documentation
a. Income will be determined by examining source documents evidencing gross income. Third -party verification of employment forms sent to employers is the preferable method to determine income. Other source documents will be used to assist in income determina tion (i.e. tax returns, copies of wage receipts, subsidy checks, and bank statements). When collecting income verification documentation, City will consider any known or upcoming changes. b. If third -party verification of employment/income isn ’t available, other types of documentation will be used, such as pay stubs, tax returns and/or three months of bank statements.
27 AGENDA ITEM NO. 3.
c. Undocumented income or “stated income ” will not be utilized but will be investigated and documented when possible.
d. All documentation shall be dated within six months prior to funding/project approval and kept in the borrower file and held in strict confidence. If the borrower was previously qualified for the program and more than 6 months have lapsed, they must be re-qualified.

7. The following te rms are key to understanding the requirements for calculating gross income.
a. Gross amount. The amount earned before any deductions have been taken. b. Projected to be received. Projected earnings rather than past earnings will be used when estimating annual income for income-eligibility purposes. c. Household. All persons in the residence are considered household members for the purpose of income eligibility. Household members are not restricted to immediate family.
d. Household income . The borrower’s income combined with the income of all household members, related or non-related, aged 18 and older. e. ADU/JADU related income. The definition of “Annual Income” has been modified to exempt ADU or JADU related income from the income calculation since this rental income will help low-income families achieve or maintain homeownership. f. Income inclusions and exclusions . Detailed guidance pertaining to what types of incomes must be included or excluded when calculating gross annual income can be found in Attachment A, as identif ied in Part 5, Appendix B Annual Income Inclusions and Exclusions, as stated in the HUD Technical Guide for Determining Income and Allowances. The information can also be found at:
https://www.hcd.ca.gov/grants-funding/income-limits/income-calculation-and- determination-guide.shtml. The borrower’s file will be documented for any exceptions or exclusions from the gross income calculation.

8. Calculating Gross Income – Gross Income means all anticipated eligible income of a person or household for the 12 -month period following the date of determination of income. City will complete the Gross Income Worksheet, using the guidelines below, to determine borrower’s eligibility.
a. Income qualification for self-employed persons is based on prior year income tax returns. Net income plus depreciation from the operation of a business or profession will be used. Any withdrawal of cash or assets from the operation of a business will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family. Income averaging is allowed only when the borrowers are seasonal employees with fluctuating incomes.
b. For a seasonal worker, the City will determine the flow of pay and relate it to the paystub’s year-to-date (YTD) figure. The YTD may only cover either the period of 28 AGENDA ITEM NO. 3.
time when the season is strong and the figure is high, or during the off -season period when the figure is low – this will be taken into consideration, and income will be adjusted to anticipate earnings for the next 12 months. c. Per diem income is not counted, as it is considered a reimbursement to the employee for expenses, he/she had to pay out of pocket to perform work for the employer.
d. City is to ascertain the basis on which employees are paid (hourly, weekly, or monthly, with or without overtime or bonuses or if on commission, or seasonal work). An employee who gets paid “twice a month” may actually be paid twice a month (24 times a year) or every two weeks (26 times a year). e. It is important to clarify whether overtime is sporadic or a predictable component of an employee’s income.
f. An annual salary is counted as annual income regardless of the payment schedule. For example, if a teacher’s annual salary is $30,000, this is the annual income regardless if the teacher is paid over a 9- or 12- month period. g. Gross income from all sources must be used, including:
 Overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services (before any payroll deductions).
 If an upcoming raise is shown on the Verification of Employment, it must be calculated as current income.
 Wages from a second job.
 The regular amount of peri odic payments received from Social Security, Supplemental Security Income (SSI), annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts. These amounts should not be grossed up.
 Payments in lieu of earnings, such as unemployment and disability compensation, worker’s compensation and severance pay.
 Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from persons not residing in the dwelling.

9. Treatment of Assets - An asset is a cash or non-cash item that can be converted to cash (i.e. checking and savings and money market accounts, stocks, bonds, and other forms of capital investments), and recognized as part of annual income. a. When a household has household assets in excess of $5,000, gross income will include the greater of:
29 AGENDA ITEM NO. 3.
 Actual amount of income, if any, derived from all the household assets, or  HUD Passbook rate of the value of all such assets.

b. If the assets are less than $5,000 no income is counted from assets. If the assets are $5,000 or greater, count the income from all of the assets. c. Note: it is the income earned from the assets that is counted – e.g. interest on a savings account – not the asset value.
d. If there is no regular income from assets, the income is imputed by using the HUD Passbook rate.
e. The City does not have a requirement to spend down the borrower ’s assets to qualify for a loan and the program encourages a borrower to retain adequate emergency funds (3-6 months of expenses).
f. For checking accounts, City will use the average 3-month balance. g. Retirement accounts are not counted as assets for Income verification if they are not accessible to the borrower without retiring or terminating employment. h. The value of equity in real property, value of gems, art collections, etc. is not to be considered in the asset base because the value fluctuates until sold. However, income from the property must be separately considered. i. The value of necessary items such as furniture and automobiles shall be excluded. j. City will utilize Part 5, Annual Income Asset Inclusions and Exclusions, as stated in the HUD Technical Guide for Determining Income and Allowances, to identif y what types of assets must be included or excluded when calculating gross annual income. The guidance can also be found at: https://www.hcd.ca.gov/grants- funding/income-limits/income-calculation-and-determination-guide.shtml. k. The borrower’s file will be documented for any exceptions or exclusions from the asset base.

10. Owner-Occupancy – Borrowers must live in the property, be on title and inte nd to continue occupying the home as a principal place of residence, as stated in the Program guidelines. In some cases, there may be owners on title not living in the property, such as a parent who co-owns the home with their son or daughter. If the child ren do not live on the property, do not deduct the property on their income taxes, and can document a different place of residence, their income may be excluded, and they would not be counted as household members. However, if they are on title, they must s ign the loan modification documents. City staff will determine owner -occupancy by researching electronic City data, mobile home park space tenancy, or other means, and cross - referencing it with recorded title documentation/deed.
30 AGENDA ITEM NO. 3.

TO: Mayor and City Council
FROM: Administration
DATE: November 3, 2025
SUBJECT: Administration – Approval – HOME First -Time Homebuyer Program Guidelines, and accompanying implementing documents.

ATTACHMENTS: 1. HOME First-Time Homebuyer (FTHB) Program Guidelines

2. HOME FTHB Homebuyer Written Agreement

3. HOME FTHB Loan Deed of Trust

4. HOME FTHB Loan Promissory Note

RECOMMENDATION
For the City Council to approve the HOME Program funded First -Time Homebuyer (FTHB) Program Guidelines, and accompanying implementing documents.

EXECUTIVE SUMMARY
City Council approval of the HOME Program FTHB Guidelines, and implementing documents, is required by the funding agency, the State of California Department of Housing and Community Development to authorize the implementation and use of HOME Program funds for first -time homebuyer loans.

BACKGROUND
The City has administered HOME Program funded First Time Homebuyer (FTHB) assistance since 2009. The HOME Program is federally funded through the U.S. Department of Housing and Urban Development (HUD), but is distributed to communities such as Clovis, throug h a competitive grant program administered by the State of California Department of Housing and Community Development (HCD).

In July 2022, HCD advised the City that HUD was requiring a state-wide pause on funding until revised FTHB Program guidelines were completed. Although the City did not have a then current award of HOME Program funds to administer, the City did have program income ( funds from previously paid off HOME Program loans) now in the amount of $257,096 to administer a FTHB program.

State HCD staff worked with HUD staff from 2022 through 2024 to draft and distribute new guidelines and documents. The City was required to review and request City Council approval 31 AGENDA ITEM NO. 4.
of the documents. Upon our internal review, City staff and the City Attorney requested several edits to the documents, which were submitted back to the State HCD in December 2024. After several rounds of review, the Program Guidelines and implementing documents have now been finalized for City Council review and approval.

The HOME FTHB Program guidelines and implementing documents follow federal regulations in the implementation of the HUD funded FTHB loans. Adoption of the documents will allow City staff to implement the HOME FTHB Program with the program income currently held by the City, as well as any future HOME Program awards received by the City.

City staff will work with local lenders to market the program and commence administration of the FTHB program once again. Borrowers will be required to apply and qual ify for a primary mortgage from a mortgage lender before applying for City assistance.

HOME FTHB Loans will be provided as a silent second, 45-year deferred payment loans. Interest rates are tiered, and start at 3% if the loan is repaid in years 1-5, 2% if repaid in years 6-10, 1% if repaid in years 11-20 and finally 0% if repaid in years 21-45. The maximum loan amount will not exceed the maximum subsidy limits as authorized by HUD . The maximum HOME Program authorized loan for a 3-bedroom home is $327,293. The City anticipates funding HOME Program loans in the range of $100,000 to $200,000.

FISCAL IMPACT
There is no fiscal impact related to approval of the Program guidelines and implementing documents. HOME Program Income is available in the City budget for the issuance of new FTHB loans.

REASON FOR RECOMMENDATION
Staff recommends approval of the HOME First -Time Homebuyer Program Guidelines, and accompanying implementing documents for final submittal to the State HCD, and upon their approval, implementation of the HOME FTHB Program.

ACTIONS FOLLOWING APPROVAL
Staff will submit the approved documents to the State HCD for their approval. Once approval from HCD is received, staff will commence implementation of the HOME FTHB Program.

CONFLICT OF INTEREST
None.

Prepared by: Claudia Cazares, Housing Program Manager

Reviewed by: City Manager AH

32 AGENDA ITEM NO. 4.
33 AGENDA ITEM NO. 4.

City of Clovis HOME Program First-Time Homebuyer Program Guidelines

HOME FIRST-TIME HOMEBUYER PROGRAM GUIDELINES

Table of Contents

1.0. GENERAL

1.1. PROGRAM OUTREACH AND MARKETING

1.2. APPLICATION PROCESS AND SELECTION

1.3. THE HOME PURCHASE PROCESS

1.4. HOMEBUYER COSTS

1.5. HOMEBUYER EDUCATION

1.6. CONFLICT OF INTEREST REQUIREMENTS

1.7. NON-DISCRIMINATION REQUIREMENTS

2.0. APPLICANT QUALIFICATIONS

2.1. CURRENT INCOME LIMITS

2.2. INCOME QUALIFICATION CRITERIA

2.3. DEFINITION OF AN ELIGIBLE HOMEBUYER

3.0. HOUSING UNIT ELIGIBILITY

3.1. LOCATION AND CHARACTERISTICS

3.2. CONDITIONS

3.3 ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE

3.4. PROPER NOTIFICATION AND DISCLOSURES

4.0. PURCHASE PRICE LIMITS

5.0. THE PRIMARY LOAN
A. QUALIFYING RATIOS
B. INTEREST RATE
C. LOAN TERM
D. IMPOUND ACCOUNT

6.0. THE PROGRAM LOAN
A. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE
B. NON-RECURRING CLOSING COSTS
C. AFFORDABILITY PARAMETERS FOR HOMEBUYERS
D. RATES AND TERMS FOR PROGRAM LOANS
E. LOAN-TO-VALUE RATIO

7.0. PROGRAM LOAN REPAYMENT

7.1. PAYMENTS ARE VOLUNTARY

7.2. RECEIVING LOAN REPAYMENTS

7.3. DUE UPON SALE OR TRANSFER

7.4. LOAN SERVICING POLICIES AND PROCEDURES

7.5. LOAN MONITORING PROCEDURES

8.0. PROGRAM LOAN UNDERWRITING AND APPROVAL

8.1. COMPLETION OF UNDERWRITING AND APPROVAL OF PROGRAM LOAN

8.2. PRIMARY AND PROGRAM LOAN DOCUMENT SIGNING

8.3. ESCROW PROCEDURES

9.0. SUBORDINATE FINANCING

10.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES

10.1. DEFINITION OF EXCEPTION

10.2. PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES

11.0. DISPUTE RESOLUTION AND APPEALS PROCEDURE

34 AGENDA ITEM NO. 4.

City of Clovis HOME Program First-Time Homebuyer Program Guidelines

TABLE OF CONTENTS (CONTINUED)

ATTACHMENTS

ATTACHMENT A: INCOME INCLUSIONS AND EXCLUSIONS
ATTACHMENT B: ASSET INCLUSIONS AND EXCLUSIONS
ATTACHMENT C: MAXIMUM PURCHASE PRICE/AFTER-REHAB VALUE LIMITS; HOME MAXIMUM PER-UNIT SUBSIDY LIMITS; CURRENT INCOME LIMITS
ATTACHMENT D: LOAN SERVICING POLICIES AND PROCEDURES
ATTACHMENT E: SELLER'S LEAD-BASED PAINT DISCLOSURE
ATTACHMENT F: DISCLOSURE TO SELLER WITH VOLUNTARY, ARM'S-LENGTH

PURCHASE OFFER
ATTACHMENT G: INSTRUCTIONS TO HOMEBUYER
ATTACHMENT H: LEAD-BASED PAINT NOTICE OF PRESUMPTION AND HAZARD REDUCTION FORM
ATTACHMENT I: HOMEBUYER PROGRAM LEAD COMPLIANCE DOCUMENT CHECKLIST

35 AGENDA ITEM NO. 4.

City of Clovis HOME Program First-Time Homebuyer Program Guidelines

CITY OF CLOVIS

HOME PROGRAM FIRST-TIME HOMEBUYER PROGRAM GUIDELINES

1.0. GENERAL

The above-named entity, hereinafter referred to as the “Sponsor” or “Lender,” has entered into a contractual relationship with the California Department of Housing and Community Development (“HCD”) to administer a HOME First -Time Homebuyer program. The homebuyer program described herein (the “Program”) is designed to assist eligible homebuyers in purchasing homes, also referred to herein as “housing units”, located within the Program’s eligible area, as described in Section 3.1.A. The Program provides thi s assistance in the form of a 30+ year deferred payment “silent” junior priority loan as “Gap” financing toward the purchase price and closing costs of an affordable housing unit that will be occupied by the homebuyers as their primary residence during the HOME Affordability Period. The Program will be administered by the City of Clovis , (the “Program Operator”).

1.1. PROGRAM OUTREACH AND MARKETING

All outreach efforts will be done in accordance with state and federal fair lending regulations to ensure nondiscriminatory treatment, outreach, and access to the Program. No person shall, on the grounds of race, color, ancestry, national origin, citizenship, immigration status, primary language, religion, disability (mental or physical), sex and gender, sexual orientation, gender identity, gender expression, genetic information, marital status, familial stat us (families with children under 18 or people who are pregnant), source of income, military or veteran status, or age be excluded, denied benefits, or subjected to discrimination under the Program.

The Sponsor will ensure that all persons, including those qualified individuals with disabilities, have access to the Program and will take steps to ensure effective communication with and marketing to applicants, residents, and members of the public with disabilities.

A. The Fair Housing Lender and Accessibility logos will be placed on all outreach materials. Affirmative marketing efforts will be based upon a comparison (census data will be used) of the Program’s eligible area compared to the demographic characteristics of the population served by the Program. T his includes tracking separately all applications , including subsets for those which result in denial of assistance or withdrawal, and for those which result in assistance), and an explanation and analysis of any underserved segments of the population. This information is used to show that protected classes ( listed above ) are not being intentionally or unintentionally excluded from the Program. Flyers or other outreach materials, in English and any other language s that are the primary 36 AGENDA ITEM NO. 4.

City of Clovis HOME Program First-Time Homebuyer Program Guidelines

languages of a significant portion of the area’s residents, in accordance with Sponsor’s L imited English Proficiency (L EP) Plan, or equivalent, will be widely distributed in the Program -eligible area and will be provided to any local social service agencies. The Program may sponsor homebuyer seminars to help educate homebuyers about the homebuying process and future responsibilities.

B. The Program Operator will market the Program to local real estate agents and primary lenders to explain the Program requirements for eligible housing units and homebuyers, and to review Program processes. Local real estate agents and primary lenders will also be invited to have their customers participate in the Program.

C. The following statement will be included in all outreach and marketing materials: Section 504 of the Rehabilitation Act of 1973 prohibits the exclusion of an otherwise qualified individual, solely by reason of disability, from participation under any program receiving Federal funds.

D. The Sponsor will ensure that all Personally-Identifiable Information remains confidential and is properly protected.

1.2. APPLICATION PROCESS AND SELECTION

A. The Sponsor will market and open the Program for applications contingent on funding availability. Applicants are asked to complete an application form, which asks for sufficient information concerning income, employment, and credit history to establish preliminary eligibility for Program participation. Completed applications are processed on a first -come-first- served basis. Applications are deemed complete only if all information is completed and the application is signed and dated. Incomplete applications are returned to the applicant and will not be date/time stamped until complete.

B. Once the application is deemed complete and an applicant is deemed eligible, they will then be invited to a briefing regarding participation in the Program. At the briefing , the application is reviewed and the potential homebuyer is given a “Preliminary Eligibility Letter” for the Program , along with the following forms: Program Brochure, Attachment (G) Instructions to Homebuyer, List of lenders familiar with the Program, Attachment (E) Seller’s Lead-Based Paint Disclosure and the EPA Booklet “Protect Your Family from Lead in Your Home”, and (F) Notice to Seller.

If the Program Operator encounters material discrepancies and/or misrepresentations, and/or there are income, asset, household composition, or other important questions that can not be resolved, the 37 AGENDA ITEM NO. 4.

City of Clovis HOME Program First-Time Homebuyer Program Guidelines

Sponsor reserves the right to deny assistance to the household. In this case, the applicant may re -apply after six months, as stated in a written assistance denial letter, contingent on funding availability.

C. Each applicant must participate in individual Homebuyer Counseling consistent with the requirements in Section 1.5 of these Program Guidelines.

D. The potential homebuyer is given 90 days to find a qualified home and secure a primary loan for the housing unit. If during the 90-day timeframe, the potential homebuyer is unable to achieve this, an extension may be given. However, if the potential homebuyer cannot meet the requirements of finding a qualified housing unit and closing a primary loan within the allotted time to participate in the Program, the reservation of funds expires and the next person on the waiting list will be given an opportunity to participate in the Program.

1.3. THE HOME PURCHASE PROCESS

A. The following is a simplified example of how a primary lender would analyze a homebuyer’s finances to determine how much the homebuyer could afford to borrow from the primary lender towards homeownership.

DEBT SERVICE
FOR A FAMILY OF FOUR EARNING $3,388 PER MONTH

HOUSING PAYMENTS TOTAL OVERALL PAYMENTS
Principal & Interest Payment $ 865 $ 1,180 Housing Insurance 82 + 200 Other Debt Service
Taxes 233 $1,380 Total Debt Service
Total Housing Expense $1,180 (Overall debt service per month is 41% of $3,388) (PITI is 35% of $3,388)

OTHER HOUSEHOLD DEBT SERVICE
Car Payment $ 150
Credit Card Payment_ 50
Total Other Debt $ 200

A $865 per month loan payment equates to borrowing $143,000 at 5.88% for a 30-year term.

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City of Clovis HOME Program First-Time Homebuyer Program Guidelines

B. The housing unit selection process will be conducted by the homebuyers.

Prior to making an offer to purchase an eligible housing unit (see Section

3.0), homebuyer shall provide seller with a disclosure containing the following provisions (see Attachment F for Disclosure to Seller form):

1) Homebuyer has no power of eminent domain and, therefore, will not acquire the property if negotiations fail to result in an amicable agreement;
2) Homebuyer’s offer is an estimate of the fair market value of the housing unit, to be finally determined by a state-licensed appraiser; 3) The housing unit will be subject to inspection. In accordance with 24 CFR section 92.251(c), t he housing unit must be decent, safe, sanitary, and in good repair. The standards must provide that the housing meets all applicable State and local housing quality standards and code requirements and the housing does not contain the specific deficiencies established by HUD based on the applicable standards in 24 CFR section 5.703 and published in the Federal Register for HOME assisted projects and units;
4) All housing units built prior to January 1, 1978, will require a lead paint disclosure to be signed by both the homebuyer and Seller (Attachment E);
5) Since the sale is voluntary, seller is not eligible for relocation payments or other relocation assistance;
6) Seller understands that the housing unit must be either: currently owner-occupied, newly constructed, bought by the current tenant, or vacant for three months prior to submission of the purchase offer; 7) If the seller is not provided with a statement of the above six provisions prior to or with the purchase offer, the seller may withdraw from the agreement after this information is provided.

SUBSIDY CALCULATION
FOR A FAMILY OF FOUR EARNING $3,388 PER MONTH

Purchase Price of Property $ 280,000 Less Primary loan amount 143,000 Less down payment of 1% 2,800

Equals “GAP” $ 134,200

Plus estimated allowable settlement charges 8,400

Equals Total Subsidy $ 142,600

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City of Clovis HOME Program First-Time Homebuyer Program Guidelines

C. Applicant submits an executed Standard Form Purchase and Sale Agreement, along with a primary lender pre-qualification letter to Program Operator. The purchase and sale agreement will be contingent on the household and housing unit meeting Program eligibility requirements and receiving Program loan approval. Program Operator verifies applicant eligibility, housing unit and loan eligibility and amount of assistance to be provided consistent with these guidelines.

D. Program Operator conducts an Environmental Review in accordance with 24 CFR Part 58, and Sponsor’s NEPA Certifying Officer signs the appropriate form before any commitment of funds are made to the homebuyer. An acquisition cannot and must not include rehabilitation immediately after transfer of title, and requires completion of a HUD CENST form from the Environmental Review - HUD Exchange webpage.

E. Program Operator, where Program Operator is not the Sponsor, submits recommendation to the Sponsor for approval or denial, including the reasons for the recommendation. Sponsor determines Applicant’s approval or denial and instructs Program Operator to no tify Applicant. Program Operator provides written notification to Applicant of approval or denial with reason and, if denied, a copy of the Program’s appeal procedures. See Section 11 of these Program Guidelines.

F. When primary lender requirements are met, Program funds are deposited into escrow, with required closing instructions and loan documents.

G. At the time of escrow closing, the Sponsor shall be named as an additional loss payee on fire, flood (if required), and extended coverage insurance for the length of the loan and in an amount sufficient to cover all encumbrances or full replacement cost of the housing unit. A policy of Title Insurance naming the Sponsor as insured is also required.

1.4. HOMEBUYER COSTS

A. Eligible households must document that they have the funds necessary for down payment and closing costs as required by the primary lender and the Sponsor. The Program’s down payment requirement (below) is in place even if the primary lender has a lower down payment requirement. If the primary lender has a higher down payment requirement, there is no additional down payment requirement required by the Program.

B. Homebuyer must contribute a minimum down payment of one percent (1%) of the purchase price but may contribute more if desired.

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City of Clovis HOME Program First-Time Homebuyer Program Guidelines

C. Sponsor will provide a subsidy that is no greater than the applicable HOME Maximum Per-Unit Subsidy Limit for the State of California, and no greater than the amount of the primary loan. The subsidy will reduce the amount of the primary lender’s loan so that the payments of principal, interest, taxes, insurance, and mortgage insurance and HOA dues, if any, are within approximately 25 to 30% of the household’s gross monthly household income. In addition, the borrower’s total debt must be within the ranges in Section 5.0. of these Program Guidelines.

D. The Program Operator will determine the level of subsidy and affordability during underwriting of the Program’s loan to make sure that it conforms to the requirements of the HCD funding Program.

1.5. HOMEBUYER EDUCATION
All Program participants are required to receive housing counseling prior to Program approval, delivered by a HUD-certified housing counselor who works for an organization certified by HUD to perform housing counseling. The Program Operator will provide the homebuyer with the needed counselor information. A list of such counseling entities is available at:
https://hud4.my.site.com/housingcounseling/s/?language=en_US.

A copy of the applicant’s certificate of completion must be placed into the homebuyer file maintained by the Program Operator. In addition, the Program Operator must include evidence that the counseling provider was HUD -certified when the counseling certification was issued.

Acceptable forms of housing counseling include in-person, phone, and/or internet, provided the client and counselor have an individualized dialogue, with guidance and advice tailored to client’s needs. This includes creating a client budget, financial analysis, an action plan, and referrals to relevant resources such as down payment assistance programs or legal services.

Housing Counseling defined: Housing counseling is independent, expert advice customized to the need of the consumer to address the consumer's housing barriers and to help achieve their housing goals and must include the following processes: Intake; financial and housing affordability analysis; an action plan, and a reasonable effort to have follow-up communication with the client when possible.

The content and process of housing counseling must meet the standards outlined in 24 CFR Part 214, which include:

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City of Clovis HOME Program First-Time Homebuyer Program Guidelines

● addressing unique financial circumstances or housing issues; ● focusing on ways of overcoming specific obstacles to achieving a housing goal such as repairing credit;
● addressing a rental dispute, purchasing a home, locating cash for a down payment, and being informed of fair housing and fair lending requirements of the Fair Housing Act;
● finding units accessible to persons with disabilities; ● avoiding foreclosure;
● resolving a financial crisis; and
● the creation of an action plan.

1.6. CONFLICT OF INTEREST REQUIREMENTS
The applicable Conflict of Interest requirements of 24 CFR section 92.356 of the HOME Final Rule shall be followed for HOME assistance, as follows:

(a) Conflicts prohibited. No persons described in paragraph (b) of this section who exercises or has exercised any functions or responsibilities with respect to activities assisted with HOME funds or who are in a position to participate in a decision making process or gain inside information with regard to these activities, may obtain a financial interest or benefit from a HOME-assisted activity, or have a financial interest in any contract, subcontract or agreement with respect to the HOME-assisted activity, or the proceeds from such activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter. Immediate family ties include (whether by blood, marriage, or adoption) the spouse, parent (including stepparent), child (including stepchild), brother, sister (including a stepbrother or stepsister), grandparent, grandchild, and in-laws of a covered person.

(b) Persons covered. The conflict of interest provisions of paragraph (a) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the participating jurisdiction, State recipient, or subrecipient receiving HOME funds.

(c) Exceptions: Threshold requirements. Upon the written request of the participating jurisdiction to HCD, HUD may grant an exception to the provisions of paragraph (a) of this section on a case-by-case basis when it determines that the exception will serve to further the purposes of the HOME Investment Partnerships Program and the effective and efficient administration of the participating jurisdiction's program or project. See 24 CFR sections 92.356(d)(1-6) for details on the documentation needed in order to submit an exception request to HUD.

1.7. NON-DISCRIMINATION REQUIREMENTS

The Program will be implemented in ways consistent with the Sponsor’s commitment to non-discrimination. No person shall be excluded from participation 42 AGENDA ITEM NO. 4.

City of Clovis HOME Program First-Time Homebuyer Program Guidelines

in, denied the benefit of, or be subject to discrimination under any program or activity funded in whole or in part with State or federal funds on the basis of race, color, ancestry, national origin, citizenship, immigration status, primary language, religion, disability (mental or physical), sex and gender, sexual orientation, gender identity, gender expression, genetic information, marital status, familial stat us (families with children under 18 or people who are pregnant), source of income, military or veteran status, or age.

2.0 APPLICANT QUALIFICATIONS

2.1. CURRENT INCOME LIMITS FOR THE AREA, BY HOUSEHOLD SIZE

All applicants must certify that they meet the household income eligibility requirements for the applicable HCD program(s) and have their household income documented. The income limits in place at the time of loan approval will apply when determining applicant income eligibility. All applicants must have incomes at or below 80% of the County’s area median income (AMI), adjusted for household size, as published by HCD.
(See Attachment C for current income limits).

Household: Means one or more persons who will occupy a housing unit. Unborn children don’t count in family size determination.

Annual Income: Generally, this is the gross amo unt of income of all adult household members that is anticipated to be received during the coming 12-month period.

2.2. INCOME QUALIFICATION CRITERIA

Projected annual gross income of the applicant household will be used to determine whether they are above or below the HCD-published HUD income limits.

The annual income definition found at 24 CFR Part 5, as detailed in the most recent HCD program -specific guidance at https://www.hcd.ca.gov/grants-and- funding/income-limits/income-calculation-and-determination-guide, will be used to independently determine and certify the household’s annual gross income. The Program Operator should compare this annual gross income to the income the primary lender used when qualifying the household. The primary lender is usually underwriting to FHA or conventional guidelines and may not calculate the household income or assets in the same way as required by the Program. Income will be verified by examining at least 2 months of source documents evidencing annual income (e.g., wage st atement, interest statement, unemployment compensation statement) and six months of checking statements for the household. All documentation shall be dated within six months prior to loan closing and kept in the applicant file and held in strict confidence.

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City of Clovis HOME Program First-Time Homebuyer Program Guidelines

A. HOUSEHOLD INCOME DEFINITION:

Household income is the annual gross income of all adult household members that is projected to be received during the coming 12 -month period and will be used to determine program eligibility. For those types of income counted, gross amounts (before any d eductions have been taken) are used. The income of live-in aides and the earned income of minors are not included in annual gross income calculations. Certain other household members living apart from the household also require special consideration.

The household’s projected income must be used, rather than past earnings, when calculating income.

See Attachment A: Income Inclusions and Exclusions

B. ASSETS:

There is no asset limitation for participation in the Program. Income , or imputed income from assets, however, is recognized as part of annual income under the 24 CFR P art 5 regulations (included as Attachment s A and B). An asset is a cash or non-cash item that can be converted to cash.

The value of necessary items such as furniture and automobiles are not included. (Note: it is the income earned – e.g., interest on a savings account – or in some cases imputed income, not the asset value, which is counted in annual income.)

An asset’s cash value is the market value , less reasonable expenses required to convert the asset to cash, including, for example, penalties or fees for converting financial holdings, and costs for selling real property.

The cash value (rather than the market value) of an item is counted as an asset.

See Attachment B: Asset Inclusions and Exclusions

2.3. DEFINITION OF AN ELIGIBLE HOMEBUYER

Program Operators are required to use the following definition of an eligible homebuyer, which is a “first -time homebuyer” from 8201(m) Title 25 California Code of Regulations:

“First-time homebuyer” means an individual or individuals , or an individual and his or her spouse who have not owned a home during the three -year period before the purchase of a home with subsidy assistance, except that the following individual or individuals may not be excluded from consideration as a first-time homebuyer under this definition:

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City of Clovis HOME Program First-Time Homebuyer Program Guidelines

1. a displaced homemaker who, while a homemaker, owned a home with his or her spouse or resided in a home owned by the spouse.

A displaced homemaker is an adult who has not, within the preceding two years, worked on a full-time basis as a member of the labor force for a consecutive twelve -month period and who has been unemployed o r underemployed, experienced difficulty in obtaining or upgrading employment and worked primarily without remuneration to care for his or her home and family;

2. a single parent who, while married, owned a home with his or her spouse or resided in a home owned by the spouse. A single parent is an individual who is unmarried or legally separated from a spouse and has one or more minor children for whom the individual has custody or joint custody or is pregnant; or

3. an individual or individuals who owns or owned, as a principal residence during the three -year period before the purchase of a home with assistance, a dwelling unit whose structure is:
a. not permanently affixed to a permanent foundation in accordance with local or state regulations; or
b. not in compliance with state, local, or model building codes and cannot be brought into compliance with such
codes for less than the cost of constructing a permanent structure.

3.0. HOUSING UNIT ELIGIBILITY

3.1. LOCATION AND CHARACTERISTICS

A. Housing units to be purchased must be located within the eligible area.

The eligible area is described as follows: “Within the City of Clovis.”

B. Housing unit types eligible for the Homebuyer Program are new or previously-owned single -family residences; condominiums; or manufactured homes in mobile home parks, in common -interest developments or on a single -family lot and placed on a permanent foundation system. HOME does not allow manufactured homes unless on a permanent foundation system.

C. All housing units must be in compliance with property standards in Section

1.3.B.3 of these Program Guidelines.

D. Housing units located within a 100 -year flood zone will be required to provide proof of flood insurance with an endorsement naming the City of Clovis as loss payee in order to close escrow.

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City of Clovis HOME Program First-Time Homebuyer Program Guidelines

E. Housing must be “modest”, in accordance with the federal HOME regulations at 24 CFR section 92.254(a)(2).

3.2. CONDITIONS

A. Construction Inspection and Determining Need for Repairs.

Once the participating homebuyer has executed a purchase agreement for a housing unit and , prior to a commitment of Program funds, the following steps must be taken for the housing unit to be eligible for purchase under the Program:

1) When the Sponsor’s Program utilizes Federal funds and if the housing unit was constructed prior to 1978 then the lead -based paint requirements of Section 3.2.C will apply.

The Program Operator is responsible to ensure that a certified housing inspector walks through the housing unit, determines if it is structurally sound, and identifies any code -related and health and safety deficiencies that need to be corrected. A list of ne cessary repair items will be given to the homebuyers and their Realtor to present to the seller’s agent.

If there are one or more health and safety deficiencies, and/or violations of applicable building codes noted in the written report, the Sponsor will approve the subsidy only if prior to close of escrow, and seller agrees to have necessary repairs made to the dwelling unit prior to transfer of property ownership, at the seller’s expense.

Upon completion of all work required by the Program Operator, Sponsor, appraiser, pest inspector and/or certified housing inspector, a final inspection will be conducted prior to close of escrow. The inspector will sign off on all required construction work assuring that each housing unit receiving Program assistance complies with Section 1.3.B.3. requirements of these Program Guidelines that the unit is decent, safe, sanitary, and in good repair, and that it meets all applicable State and local housing quality standards and code requirements and does not contain the specific deficiencies established by HUD based on the applicable standards in 24 CFR section 5.703 and published in the Federal Register for HOME - assisted projects and units, at the time of purchase and prior to occupancy.

2) Only new construction and homes built within the previous 12 months and not previously occupied are not subject to a home inspection.

B. Per 24 CFR section 92.214(a)(6), no additional HOME assistance, including rehabilitation funds, may be provided after the 1 -year anniversary of the 46 AGENDA ITEM NO. 4.

City of Clovis HOME Program First-Time Homebuyer Program Guidelines

filing of the Project Completion Report through the end of the HOME Affordability Period. The HOME Affordability Period is as follows (amount does not include Activity Delivery and Administration Costs paid to the State Recipient by HCD):

Amount of HOME Assistance Period of Affordability in Years Under $25,000 5 years
$25,000 to $50,000 10 years
Over $50,000 15 years

During the HOME Affordability Period, the home must remain occupied by the borrower or an eligible heir, as their primary residence, or else all HOME assistance becomes due and payable.

C. Lead-Based Paint Hazards : All housing units built prior to 1978 for which HOME funding is anticipated are subject to the requirements of this section

3.2.C. Such homes must undergo a visual assessment by a person who has taken HUD’s online Visual Assessment course. Deteriorated paint must be stabilized using work safe methods. Clearance must be obtained after paint stabilization by a DHS-certified LBP Risk Assessor/Inspector. HOME general administrative and activity delivery funds may be used to pay for lead-based paint visual assessments, and if lead mitigation and clearance costs are incurred, these programs may incorporate the costs into the calculation of Program assistance.

D. The following requirements must be met:

1) Notification: a) Prior to homebuyer’s obligation to purchase a home built prior to 1978, the Buyer will be given the most recent copy of and asked to read the EPA pamphlet “ Protect Your Family From Lead in Your Home”. (EPA 747-K-94-001). A signed receipt of the pamphlet will be kept in the Sponsor’s homebuyer file; b) A notice to residents is required following a risk assessment/inspection using form DHS 8552, which is provided by the DHS -certified Risk Assessor/Inspector; c) a notice to r esidents is requ ired following lead -based paint mitigation work using Visual Assessment and Lead -based Paint Notice of Presumption and Hazard Reduction form, LBP – 1 (Attachment H).

2) Disclosure: Prior to the homebuyer’s obligation to purchase a home built prior to 1978, the HUD disclosure (Attachment E), “Seller’s Lead - based Paint Disclosure” notice must be provided by the seller to the homebuyer.

3) Inspections: The Inspector shall conduct a “Visual Assessment” of all the dwelling unit’s painted surfaces to identify deteriorated paint. All 47 AGENDA ITEM NO. 4.

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deteriorated paint will be stabilized in accordance with CFR 35.1330 (a) and (b); and a Clearance shall be made in accordance with CFR

35.1340.

4) Mitigation: If stabilization is required, the contractor performing the mitigation work must use appropriately -trained workers. Prior to the contractor starting mitigation work, the Program Operator shall obtain copies of the contractor’s and workers’ appropriate proof of LBP training, as applicable to the job , to assure that only qualified contractors and workers are allowed to perform the mitigation.

E. The Program Operator will: 1) confirm that the housing unit is within the eligible area, 2) will review each proposed housing unit to ensure that it meets all eligibility criteria before funding, and 3) ensure a completed Lead Compliance Document Checklist is placed in each purchaser’s file (see Attachment I).

F. Environmental Review: Program Operator conducts an Environmental Review in accordance with 24 CFR Part 58, and Sponsor’s NEPA Certifying Officer signs the appropriate form before any commitment of funds are made to the homebuyer. An acquisition must not include rehabilitation immediately after transfer of title, and requires completion of a HUD CENST form from the Environmental Review - HUD Exchange webpage.

3.3. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE

Eligible homes will be those that are currently owner-occupied or have been vacant for three months prior to the acceptance of a contract to purchase. A unit is ineligible if its purchase would result in the displacement of a tenant. It is not anticipated that the implementation of the Program will result in the displacement of any persons, households, or families. However, if tenant -occupied homes are inadvertently included in the Program and relocation becomes necessary, the activity will be carried ou t in compliance with Sponsor’s relocation plan, which describes how those permanently displaced will be relocated and paid benefits in accordance with the following Federal laws.

A. Uniform Relocation Assistance (URA) and Real Property Acquisition Policies Act of 1970

The federal URA and Real Property Acquisition Policies Act of 1970 , as amended, contains requirements for carrying out real property acquisition or the displacement of a person, regardless of income status, for a project or program for which HUD financial assistance (including HOME) is provided. Requirements governing real property acquisition are described in HUD’s CPD Handbook 1378.0. The implementing regulations, 49 CFR 48 AGENDA ITEM NO. 4.

City of Clovis HOME Program First-Time Homebuyer Program Guidelines

Part 24, require developers and owners to take certain steps regarding tenants of housing to be acquired, rehab ilitated, or demolished, including tenants who will not be relocated even temporarily.

B. Section104(d) of the Housing and Community Development Act of 1974

Section 104(d) requires each contractor (CHDO or State Recipient), as a condition of receiving assistance under HOME, to certify that it is following a residential anti-displacement plan and relocation assistance plan. Section 104(d) also requires relocat ion benefits to be provided to low -income persons who are physically displaced or economically displaced as the result of a HOME -assisted project, and requires the replacement of low - income housing, which is demolished or converted. The implementing regulations for Section 104(d) can be found in 24 CFR Part 42, subpart (C).

3.4. PROPER NOTIFICATION AND DISCLOSURES

A. Upon selection of a housing unit, a qualified seller and homebuyer will be given the necessary disclosures for the Program. The homebuyer must have read and signed all Program disclosure forms. All property disclosures must be reviewed and signed by the homebuyer and seller.

B. All owners who wish to sell their housing units must receive an acquisition notice (Attachment F) prior to submission of the homebuyer’s original offer.

This notice will be included in the contract and must be signed by all owners on title. The disclosure must contain the items listed in 1.3.B. (required for federally-funded programs).

4.0. PURCHASE PRICE LIMITS

The purchase price limits for this Program shall not exceed the HOME Homeownership Value Limit for the Sponsor’s County as updated by HCD, or a temporary waiver limit approved by HUD and the Department.

Attachment C: HOME HOMEOWNERSHIP VALUE LIMITS *Sponsor will update these limits annually as HCD provides new information.

5.0. THE PRIMARY LOAN

Prior to obtaining a loan from the Sponsor, a homebuyer must provide evidence of approval for the maximum amount the primary lender is willing to loan (the “primary loan”), although the Program may limit the primary loan amount based on the debt- to-income ratio maximums herein.

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City of Clovis HOME Program First-Time Homebuyer Program Guidelines

A. QUALIFYING RATIOS

The front-end (housing) debt-to-income ratio shall be between 25% and 30% and is the percentage of a borrower’s gross monthly income (before deductions) that would cover the cost of the loan principal and interest payment, property taxes, property insurance, and mortgage insurance and HOA dues, if any.

The back-end (total) debt-to-income ratio shall be between 25% and 40% and is the percentage of a borrower’s gross monthly income that would cover the cost of housing as described in the paragraph above, plus any other monthly debt payments like auto or personal loans, credit card debt, and student debt, as well as child support and alimony payments.

Exceptions to these maximums must be documented and placed into each loan file, to demonstrate compensating factors.

The Program Operator must complete the HOME Subsidy Calculation Worksheet and place it into the loan file to document that the HOME assistance amount was appropriate, based on compliance with the debt ratio ranges in the two preceding paragraphs of this subsection. The Worksheet is currently accessible on the HOME webpage at:
https://www.hcd.ca.gov/grants-funding/grants-
forms/docs/HOME_FTHB_Subsidy_Calculation_Worksheet_June_2013_Version.xls.

B. INTEREST RATE

The primary loan must have a fixed interest rate that does not exceed, by greater than one percent, the Freddie Mac 30-year Fixed Rate Mortgage rate at https://www.freddiemac.com/pmms.

The applicable Freddie Mac rate should be from the date the primary mortgage rate was locked, or else the date of HOME loan approval. No temporary interest rate buy-downs are permitted. The loan file must contain this documentation for Department monitoring purposes.

C. LOAN TYPE AND TERM

The primary loan shall be fully amortized and have a term “all due and payable” in no fewer than 30 years. There shall not be a balloon payment due before the maturity date of the Program loan.

D. IMPOUND ACCOUNT

All households will be required to have impound accounts for the payment of taxes and insurance to ensure they remain current.
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City of Clovis HOME Program First-Time Homebuyer Program Guidelines

6.0. THE PROGRAM LOAN

A. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE

For HOME, the amount of Program assistance to a homebuyer toward purchase of a home shall not exceed the HOME Maximum Per-Unit Subsidy Limits (“Subsidy Limits”) for the State of California and shall never exceed the amount of the primary loan, See Attachment C of these Program Guidelines for current Subsidy Limits.

Any approved “grant” amount for lead -based paint evaluation and reduction activities or for relocation assistance shall be included in th e Subsidy Limits evaluation, as shall Activity Delivery Costs.

B. NON-RECURRING CLOSING COSTS

Non-recurring costs such as credit report, escrow, closing and recording fees, and title report and title insurance, title updates and/or related costs may be included in the Program loan.

C. AFFORDABILITY PARAMETERS FOR HOMEBUYERS

The actual amount of a Homebuyer’s Program subsidy shall be computed according to the debt-to-income ratio parameters specified in Section 5.0.A. Each borrower shall receive only the subsidy needed to allow them to become homeowners (“the Gap”) while keeping their housing costs affordable. The Program Operator will use the “front -end ratio” of housing -expense-to-income to determine if the amount of the proposed primary loan is acceptable and, ultimately, the Program subsidy amount required, bridging the gap between the acquisition cost (purchase price plus closing costs) less down payment, and the amount of the primary loan.

D. RATE AND TERMS FOR PROGRAM LOAN

All Program assistance to individual households shall be made in the form of a deferred payment (of principal and interest) loan (DPL).

The Program loan’s term shall be for 45 years

The Program loan’s interest rate shall be:
3% if paid in first 5 years of the Promissory Note
2% if paid during years 6-10 of the Promissory Note
1% if paid during years 11-20 of the Promissory Note
0% if paid during years 21-45 of the Promissory Note

All Program loan payments shall be deferred because the borrowers will have their repayment ability fully utilized under the primary loan. Loan principal shall not be 51 AGENDA ITEM NO. 4.

City of Clovis HOME Program First-Time Homebuyer Program Guidelines

forgiven, subject to net proceed s availability. Net proceeds are the sales price minus superior loan repayment (other than HOME funds) and any closing costs. (24 C.F.R. 92.254 (a)(5)(ii)(A) . The loan period cannot be extended, except for loans that are resubordinated when a rate and term refinance is approved, per Attachment D.

E. COMBINED LOAN-TO-VALUE RATIO

The loan -to-value ratio for a Program loan, when combined with all other indebtedness to be secured by the property, shall not exceed 100 percent of the sales price plus a maximum of up to 5 percent of the sales price to cover actual closing costs.

7.0. PROGRAM LOAN REPAYMENT (HOME RECAPTURE TERMS)

Recapture of Entire Direct Subsidy

The Program Lender recaptures the entire amount of the direct HOME subsidy provided to the homebuyer, plus any interest due according to the terms of the HOME Promissory Note, before the homebuyer receives a return. The recapture amount is limited to the net proceeds available from the sale or foreclosure.

In cases where there is appreciation, (see definition of Appreciation), the homebuyer would retain any net proceeds exceeding the direct HOME assistance plus interest due that is recaptured.

In some cases, such as in declining housing markets, net proceeds available at the time of sale may be insufficient to recapture the entire direct HOME subsidy plus interest due provided to the homebuyer. Since the HOME Final Rule limits recapture to available net proceeds, the Program Lender can recapture only what is available from net proceeds.

In a scenario where recapture provisions state that the entire direct HOME subsidy plus interest will be recaptured, and there are insufficient net proceeds available at sale, the Program Lender is not required to repay to the Department, and the Department is not required to pay back to HUD the difference between the total direct HOME subsidy and the amount available for recapture from net proceeds.

Example: A homebuyer receives $10,000 of HOME down payment assistance to purchase a home. The direct HOME subsidy to the homebuyer is $10,000, which results in a five-year Period of Affordability. If the homebuyer sells the home after three years, the grantee or state would recapture, assuming that there are sufficient net proceeds, the entire $10,000 direct HOME subsidy plus any interest due according to the terms of the HOME Promissory Note. The homebuyer would receive any net proceeds in excess of that amount.
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City of Clovis HOME Program First-Time Homebuyer Program Guidelines

7.1. PAYMENTS ARE VOLUNTARY

Borrowers may begin making voluntary payments at any time, without penalty.

Payments will be applied to principal, thus reducing accrual of simple interest.

7.2. RECEIVING LOAN PAYMENTS

A. Voluntary Program loan payments, and loan payoffs, shall be made to:

City of Clovis
1033 Fifth Street
Clovis, CA 93612

B. The Sponsor shall be the receiver of loan payments or recaptured funds and will maintain a financial record-keeping system to record payments and file statements on payment status. Payments shall be deposited and accounted for in the Sponsor’s Program Income Account, as requi red by the HOME program. The Program lender will accept loan payments from borrowers prepaying deferred loans, and from borrowers making payments in full upon sale or transfer of the property. All loan payments are payable to the Sponsor. The Sponsor may, at its discretion, enter into an agreement with a third party to collect and distribute payments and/or complete all loan servicing aspects of the Program.

7.3. DUE UPON SALE OR TRANSFER

If an owner sells, transfers title, or discontinues principal residency in the purchased property during the HOME Affordability Period for any reason, the loan is immediately due and payable pursuant to the Recapture (loan repayment) terms in the HOME Loan Agreement.

Notwithstanding the foregoing, if the owner of the property dies, even after the HOME Affordability Period expires, an heir may assume the HOME loan at the same rate and terms , if the heir’s household meets each of the following requirements:

• does not exceed the current HOME income limits; and
• will immediately occupy the home as their principal residence.

During the HOME Affordability Period, if the property owner dies and the heir does not meet these HOME eligibility requirements, the loan is due and payable.

The loan will be in default if the borrower fails to maintain required fire or flood insurance or fails to pay property taxes. See Attachment D on loan defaults for 53 AGENDA ITEM NO. 4.

City of Clovis HOME Program First-Time Homebuyer Program Guidelines

further information on property restrictions.

7.4. LOAN SERVICING POLICIES AND PROCEDURES

See Attachment D for local loan servicing policies and procedures. While the attached policy outlines a system that can accommodate a crisis that restricts borrower repayment ability, it should in no way be misunderstood: The loan must be repaid. All leg al means to ensure the repayment of a delinquent loan as outlined in the Loan Servicing Policies and Procedures shall be pursued.

7.5. LOAN MONITORING PROCEDURES

Sponsor must monitor Borrowers and their homes annually to ensure adherence to Program requirements including, but not limited to, the following:

A. Owner-occupancy during the Period of Affordability
B. Property tax payment
C. Hazard insurance coverage
D. Good standing on Primary loans
E. General upkeep of home

8.0. PROGRAM LOAN UNDERWRITING AND APPROVAL

A. Loan Underwriting

All homebuyers or their representatives shall receive an eligibility packet with all the necessary forms, disclosures, information, and application. The homebuyer must submit a complete application packet with all the Sponsor’s Program loan documents executed, as well as all the information from the primary lender. The primary lender shall submit copies of the following to the Sponsor : 1) fully-executed property sales contract with proper seller notification; 2) mortgage application with good faith estimates and first mortgage disclosures; 3) full mortgage credit report and rent verification; 4) current third -party income verifications and verifications of assets; 5) homeownership education certificate, if applicable; and 6) signed underwriting transmittal summary and final signed loan application, both from primary lender. Staff will work with local lenders to ensure qualified participants receive only the benefit from the Sponsor’s Program needed to purchase the housing unit and that leveraged funds will be used when possible.

B. Creditworthiness

Qualifying ratios are only a rough guideline in determining a potential borrower’s creditworthiness. Many factors such as credit history, amount 54 AGENDA ITEM NO. 4.

City of Clovis HOME Program First-Time Homebuyer Program Guidelines

of down payment, and size of loan will influence the decision of the primary lender to approve or disapprove a particular loan. The borrower’s credit history will be reviewed by the Sponsor and documentation of such maintained in the loan file. The Sponsor may elect to obtain a credit report or rely on a current copy obtained by the primary lender. The Sponsor must use the information on the credit report for each adult borrower for its calculations of front-end and back-end debt-to-income ratios.

C. Documents from Primary Lender

After initial review of the qualified homebuyer's application packet, the Program Operator will request any additional documents needed.

Documents may be e-mailed or faxed. Based on receipt and review of the final documents, the Program Operator will complete, sign, and date an income certification ( using the most -recent HCD program’s guidance on income calculation and determination), and homebuyer certification (review of credit report and income taxes). Documentation of affordability shall then be verified, and a subsidy amount will be determined by the Program Operator.

D. Disclosure of Program and Loan Information to Homebuyers

The Program Operator will inform the borrower of the results of the income determination process, including the permissible range of primary mortgage payments and the maximum purchase price possible. Information on the Program’s application will be documented with third -party verifications and/or documents in the file. For example, the sales contact will provide the final purchase price and outline how much of the closing costs are to be paid by the seller, etc. The appraisal, termite , and title report s provide information to substantiate the information in the sales contract and guide the construction inspection. The Program loan application provides current debt and housing information and will be documented by the credit report and income/asset verifications. The primary lender’s approval letter and estimated closing cost statement should reflect all the information in the loan package and show any contingencies of loan funding. Reviewing the primary lender’s loan underwriting documentation will provide basic information about the qualification of the applicant and substantiate the affordability provided by the Program loan. By reviewing and cross - checking all the primary lender information, the final Program loan amount approved will fall within the affordability parameters of the Program.

8.1. COMPLETION OF UNDERWRITING AND APPROVAL OF PROGRAM LOAN

Once the loan approval package has been completed , the Program Operator will submit it to the Sponsor for approval. Sponsor will review the request and may 55 AGENDA ITEM NO. 4.

City of Clovis HOME Program First-Time Homebuyer Program Guidelines

approve it with or without conditions. Upon approval, a final closing date for escrow is set, and Program funds are provided to the homebuyer.

8.2. PRIMARY AND PROGRAM LOAN DOCUMENT SIGNING

The homebuyer(s) sign promissory notes, loan agreements, deeds of trust, and statutory lending notices (Truth In Lending (TIL), etc.); the Deeds of Trust are recorded with the County Clerk/Recorder at the same time, and the request(s) for a copy of Notice of Default are also recorded with the County Clerk/Recorder.

8.3. ESCROW PROCEDURES

The escrow/title company shall review the escrow instruction s provided by the Program Lender and shall issue California Land Title Association (CLTA) and American Land Title Association (ALTA) policies to the homebuyer and the Program Lender after closing. The CLTA policy is issued to the homebuyer and protects them against failure of title based on public records and against such unrecorded risks as forgery of a deed. The ALTA policy is issued to each lender providing additional coverage for the phy sical aspects of the property , as well as the homebuyer’s title failure. These aspects include anything which can be determined only through physical inspection, such as correct survey lines , encroachments, mechanics liens, mining claims, and water rights. The Program Lender instructs the escrow/title company in the escrow instructions what may show on the policy , the amount of insurance on the policy (all liens should be covered), and the loss payee (each lender should be listed as a loss payee and receive an original ALTA policy).

9.0. SUBORDINATE FINANCING

Subordinate loans may be used to cover mortgage subsidy costs that exceed the Program maximum loan amount. All subordinate liens must have the payments deferred, and the term must be for at least as long as the term of the Program loan.

10.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES

The Sponsor may make amendments to these Participation Guidelines. Any changes shall be made in accordance with regulations and approved by the Sponsor’s HOME Program Representative or Program Manage r. If internally required, the Sponsor’s Loan Committee and/or governing body would then need to approve said changes.

10.1. DEFINITION OF EXCEPTION

Any case to which a standard policy or procedure, as stated in the guidelines, does not apply or an applicant treated differently from others of the same class would 56 AGENDA ITEM NO. 4.

City of Clovis HOME Program First-Time Homebuyer Program Guidelines

be an exception.

10.2. PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES

A. The Sponsor or its agent may initiate consideration of an exception and prepare a report. This report shall contain a narrative, including the Sponsor's recommended course of action and any written or verbal information supplied by the applicant.

B. The Sponsor shall make a determination regarding the exception request based on the recommendation of the Program Operator. The request can be presented to the Sponsor’s loan committee and/or governing body for a decision.

C. Note: such exceptions may not directly or indirectly discriminate against protected classes under all current federal fair housing law and state statutes and regulations.

11.0. DISPUTE RESOLUTION AND APPEALS PROCEDURE

Any applicant denied assistance from the Program has the right to appeal.

Complaints concerning the Program should be made to the Program Operator first.

If unresolved in this manner, the complaint or appeal must be made in writing and filed with the Spo nsor. The Sponsor will then schedule a meeting with the Loan Review Committee. Their written response will be made within thirty (30) working days. If the applicant is not satisfied with the Committee's decision, a request for an appeal may be filed with the Sponsor’s City Manager or designee. Final appeal must be filed in writing with HCD within one year after denial.

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City of Clovis HOME Program First-Time Homebuyer Program Guidelines

ATTACHMENT A
Income Inclusions and Exclusions

The Program Operator shall access the current federal income determination regulations online at https://www.ecfr.gov/current/title-24/subtitle-A/part-5/subpart-F/subject- group-ECFR174c6349abd095d/section-5.609, regarding income inclusions and exclusions.

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City of Clovis HOME Program First-Time Homebuyer Program Guidelines

ATTACHMENT B
Asset Inclusions and Exclusions

The Program Operator shall access the current federal income determination regulations at https://www.ecfr.gov/current/title-24/subtitle-A/part-5/subpart-F/section-5.603 regarding the definition of Net family assets, to which the regulations at section 5.609 refer.

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City of Clovis HOME Program First-Time Homebuyer Program Guidelines

ATTACHMENT C

HOME HOMEOWNERSHIP VALUE LIMITS FOR FRESNO COUNTY
(Limits effective 9/1/2024)

EXISTING

CONSTRUCTION
NEW

CONSTRUCTION
(less than 12 months
old)
$390,000 $394,000

HOME MAXIMUM PER-UNIT SUBSIDY LIMITS FOR CALIFORNIA
(Limits effective 2/13/2024)
O-BDR 1-BDR 2-BDR 3-BDR 4-BDR
$181,488 $208,049 $252,994 $327,293 $359,263

HOME INCOME LIMITS FOR FRESNO COUNTY*
(Limits effective 6/1/2025)
Number of Persons in Household
1 2 3 4 5 6 7 8
80% of
AMI
$52,600 $60,100 $67,600 $75,100 $81,150 $87,150 $93,150 $99,150

The link to the official, HCD-maintained Value, Subsidy, and income limits is:
https://www.hcd.ca.gov/funding/income-limits/state-federal-income-limits/cdbg- home-nhtf

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City of Clovis HOME Program First-Time Homebuyer Program Guidelines

ATTACHMENT D

LOAN SERVICING POLICIES AND PROCEDURES

FOR THE CITY OF CLOVIS

The City of Clovis, hereafter called “Lender,” has adopted these policies and procedures to preserve its financial interest in properties whose “Borrowers” have been assisted with public funds. The Lender will , to the greatest extent possible , follow these policies and procedures, but each loan will be evaluated and handled on a case -by-case basis. The Lender has formulated this document to comply with state and federal regulations regarding the use of these public funds and the property restrictions associated with them.

The policies and procedures are broken down into the following areas: 1) making required monthly payments or voluntary payments on a loan’s principal and interest; 2) required payment of property taxes and insurance; 3) required Request for Notice of Default on all second mortgages; 4) loans with annual occupancy restrictions and certifications ; 5) required noticing and limitations on any changes in title or use of property; 6) required noticing and process for requesting a subordination during a refinance; and 7) processing of foreclosure in case of default on the loan.

1. Loan Repayments:

Promissory Notes are for deferred payment loans, but the Lender must accept voluntary payments on the loan. Loan payments will be credited to principal. The Borrower may repay the loan balance at any time with no penalty.

Program loan payments, and loan payoffs, shall be made to:

City of Clovis
1033 Fifth Street
Clovis, CA 93612

2. Payment of Property Taxes and Insurance:

As part of keeping the loan from going into default, borrower must maintain property insurance coverage naming the Lender as loss payee.

When a property is in a 100-year floodplain, the Borrower will be required to carry the necessary flood insurance. A certificate of insurance for flood and for standard property insurance with an endorsement naming the City of Clovis as lender loss payee will be required at close of escrow. The Lender will verify the insurance on an annual basis.

Property taxes must be kept current during the term of the loan. The Lender requires Borrower to have impound accounts set up with their first mortgagee wherein they pay their taxes and insurance as part of their monthly mortgage payment. 61 AGENDA ITEM NO. 4.

City of Clovis HOME Program First-Time Homebuyer Program Guidelines

3. Required Request for Notice of Default:

When the Borrower’s loan is in second position behind an existing first mortgage, it is the Lender's policy to prepare and record a "Request for Notice of Default" for each senior lien in front of Lender’s loan. This document requires any senior lienholde r listed in the notice to notify the Lender of initiation of a foreclosure action. The Lender will then contact the Borrower and assist them in bringing the first loan current, if possible. The Lender can also monitor the foreclosure process and go throu gh the necessary analysis to determine if the loan can be made whole or preserved. When the Lender is in a third position and receives notification of foreclosure from only one senior lienholder, it is in their best interest to contact any other senior li enholders regarding the status of their loans.

4. Annual Occupancy Restrictions and Certifications:

On owner-occupant loans, the Lender will require that Borrowers submit utility bills and/or other documentation annually to prove occupancy during the term of the loan. Annual occupancy verification will occur between October 1 and 15 of each year for the term of the loan.

5. Required Noticing and Restrictions on Any Changes of Title or Occupancy:

In all cases where there is a change in title , occupancy, and/or use, the Borrower must notify the Lender in writing of the change.

If a transfer of the property occurs through inheritance, the heir (as owner-occupant) may be provided the opportunity to assume the loan, provided the heir is income eligible. If the heir intends to occupy the property and is not low -income, the balance of the loan is due and payable.

If the owner moves out and converts the owner-occupied unit into a rental unit before the end of the HOME Affordability Period, the loan is due in full, unless the owner moves back in immediately.

Conversion to use other than residential use is not allowable where the full use of the property is changed from residential to commercial or other. In some cases, Borrowers may request that the Lender allow for a partial conversion where some of the resi dence is used for a business, but the household still resides in the property. Partial conversions can be allowed if it is reviewed and approved by all agencies required by local statute. If the use of the property is converted to a fully non-residential use, the loan balance is due and payable.

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6. Requests for Subordinations:

When a Borrower wishes to refinance their existing first mortgage, they must submit a subordination request to the Program Lender. Approved refinancing of senior debt will be limited by the Department to circumstances in which the original homebuyer is securing more favorable terms that reduce monthly housing costs, or if sufficient equity exists, to take cash out only for items such as immediate repairs to the property to correct identified health and safety violations.

There can be no third-party debt payoffs or additional encumbrances on the property. The total indebtedness on the property should not exceed the current market value , except when the borrower is obtaining a federally-sponsored refinance program loan. If said loan is approved and meets all other requirements, Combined Loan -To-Value will not be considered when reviewing the subordination request.

Also, the loan must:

1. be fully amortized and have a fixed interest rate that does not exceed the current market rate, as established by an index identified in these Program Guidelines;

2. not have a temporary interest rate buy-down;

3. have a term “all due and payable” that matures prior to or concurrently with the maturity date of the Promissory Note. Therefore, the maturity date of the existing Promissory Note shall be modified to coincide with the maturity date of the new first mortgage; and

4. not have a balloon payment due before the maturity date of the Program loan.

Upon receiving the proper documentation from the refinance lender, the request will be considered by the Sponsor’s loan committee for review and approval. Upon approval, the escrow company will provide the proper subordination document for execution and recordation by the Sponsor.

7. Process for Loan Foreclosure:

Upon any condition of loan default, such as non-payment, lack of insurance or property tax payment, change in title or use without approval, or default on senior loans, the Lender will send out a letter to the Borrower notifying them of the default status. If the default status continues, the Lender may start the formal process of foreclosure.

When a senior lienholder starts a foreclosure process and the Lender is notified via a Request for Notice of Default, the Lender, who is the junior lienholder, may cancel the foreclosure proceedings by "reinstating" the senior lienholder. The reinstatement amount or payoff amount must be obtained by contacting the senior lienholder. This amount will include all delinquent payments, late charges, and fees to date. Lender must confer with Borrower to determine if, upon paying the senior lienholder current, the Borrower can provide future payments. If this is the case , then the Lender may cure the foreclosure and add the costs to the balance of the loan with a Notice of Additional Advance on the existing note. HOME funds may not be used for this purpose. 63 AGENDA ITEM NO. 4.

City of Clovis HOME Program First-Time Homebuyer Program Guidelines

If the Lender determines, based on information on the reinstatement amount and status of Borrower, that bringing the loan current will not preserve the loan, then staff must determine if it is cost effective to protect their position by paying off the seni or lienholder in total and restructuring the debt such that the unit is made affordable to the Borrower.

If the Lender does not have sufficient funds to pay the senior lienholder in full, then they may choose to cure the senior lienholder and foreclose on the property themselves. If there is sufficient value in the property, then the Lender can afford to pay for the foreclosure process, pay off the senior lienholder, and retain some or all of its investment.

If the Lender decides to reinstate, the senior lienholder will accept the amount to reinstate the loan until five (5) days prior to the set "foreclosure sale date." This "foreclosure sale date" usually occurs about four (4) to six (6) months from the date of recording of the "Notice of Default." If the Lender fails to reinstate the senior lienholder before five (5) days prior to the foreclosure sale date, the senior lienholder will then require a full payoff of the balance, plus related foreclosure administrative costs, to cancel foreclosure. If the Lender determines the reinstatement and maintenance of the property is not cost effective and allows the senior lienholder to complete foreclosure, the Lender's lien may be released once net available proceeds are received, if any.

Lender as Senior Lienholder

When the Lender is in first position as a senior lienholder, active collection efforts will begin on any loan that is 31 or more days in arrears. Attempts will be made to assist the homeowner in bringing and keeping the loan current. These attempts will be conveyed in an increasingly urgent manner until loan payments have reached 90 days in arrears, at which time the Lender may consider foreclosure. Lender’s staff will consider the following factors before initiating foreclosure:

1) Can the loan be cured, and can the rates and terms be adjusted to allow for affordable payments such that foreclosure is not necessary?

2) Can the Borrower refinance with a private lender and pay off the Lender?

3) Can the Borrower sell the property and pay off the Lender?

4) Does the balance warrant foreclosure? (If the balance is under $5,000, the expense to foreclose may not be worth pursuing.)

5) Will the sales price of home "as is" cover the principal balance owing, necessary advances, (maintain fire insurance, maintain or bring current delinquent property taxes, monthly yard maintenance, periodic inspections of property to prevent vandalism, etc.) foreclosure, and marketing costs?

If the balance is substantial and a ll the above factors have been considered, the Lender may opt to initiate foreclosure. The Borrower must receive, by certified mail, a thirty-day 64 AGENDA ITEM NO. 4.

City of Clovis HOME Program First-Time Homebuyer Program Guidelines

notification of foreclosure initiation. This notification must include the exact amount of funds to be remitted to the Lender to prevent foreclosure (such as, funds to bring a delinquent BMIR current or pay off a DPL).

At the end of thirty calendar days, the Lender should contact a reputable foreclosure service or local title company to prepare and record foreclosure documents and make all necessary notifications to the owner and junior lienholders. The service will advise the Lender of all require d documentation to initiate foreclosure (Note and Deed of Trust usually) and funds required from the owner to cancel foreclosure proceedings. The service will keep the Lender informed of the progress of the foreclosure proceedings.

When the process is completed, and the property has "reverted to the beneficiary" at the foreclosure sale, the Lender could sell the home themselves under a homebuyer program or use it for an affordable rental property managed by a local housing authority or use it for transitional housing facility or other eligible use. The Lender could contract with a local real estate broker to list and sell the home and use those funds for program income eligible uses.
65 AGENDA ITEM NO. 4.

City of Clovis HOME Program First-Time Homebuyer Program Guidelines

ATTACHMENT E
SELLER’S LEAD-BASED PAINT DISCLOSURE
Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards

Lead Warning Statement
Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller’s possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase.

Seller’s Disclosure
(a) Presence of lead-based paint and/or lead-based paint hazards (check (i) or (ii) below):
(i) ____ Known lead-based paint and/or lead-based paint hazards are present in the housing (explain).
________________________________________________________ (ii)____ Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing.
(b) Records and reports available to the seller (check (i) or (ii) below):
(i) ____ Seller has provided the purchaser with all available records and reports pertaining to Lead-based paint and/or lead-based paint hazards in the housing (list documents below). ————————————————————————————————————————
(ii) ____Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing.

Purchaser’s Acknowledgment (initial)
(c)____Purchaser has received copies of all information listed above. (d)____Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. (e)____Purchaser has received a 10-day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards.

Agent’s Acknowledgment (initial)
(f)____ Agent has informed the seller of the seller’s obligations under 42 U.S.C. 4852d and is aware of his/her responsibility to ensure compliance.

Certification of Accuracy
The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate.

—————————— —————————— ————————— —————————
Seller Date Seller Date

—————————— —————————— ————————— —————————
Purchaser Date Purchaser Date

—————————— —————————— ————————— —————————
Agent Date Agent Date
66 AGENDA ITEM NO. 4.

City of Clovis HOME Program First-Time Homebuyer Program Guidelines

ATTACHMENT F

Disclosure to Seller with Voluntary, Arm's Length Purchase Offer

DECLARATION

This is to inform you that would like to purchase the property, located at , if a satisfactory agreement can be reached. We are prepared to pay $____________ for a clear title to the property under conditions described in the attached proposed contract of sale.

Because Federal funds may be used in the purchase, however, we are required to disclose to you the following information:

1. The sale is voluntary. If you do not wish to sell, the buyer, ___________________, thru the agency, _____________ will not acquire your property. The buyer does not have the power of eminent domain to acquire your property by condemnation (i.e., eminent domain) and the agency/Sponsor ________________________________ will not use the power of eminent domain to acquire the property.

2. The estimated fair market value of the property is $__________ and was estimated by _______________________________________, to be finally determined by a professional appraiser prior to close of escrow.

Since the purchase would be a voluntary, arm’s-length transaction, you would not be eligible for relocation payments or other relocation assistance under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), or any other law or regulation. Also, as indicated in the contract of sale, this offer is made on the condition that no tenant will be permitted to occupy the property before the sale is completed.

Again, please understand that if you do not wish to sell your property, we will take no further action to acquire it. If you are willing to sell the property under the conditions described in the attached contract of sale, please sign the contract, and return it to us at:
_______________________________________________. If you have any questions about this matter, please contact __________________________at ______________________.

Sincerely,
___________________________________
Title
_________________________________ _____________________ Buyer Date
_________________________________ _____________________ Buyer Date

Form continues on next page with Seller’s Acknowledgment 67 AGENDA ITEM NO. 4.

City of Clovis HOME Program First-Time Homebuyer Program Guidelines

Disclosure to Seller with Voluntary, Arm's Length Purchase Offer (Page 2)

Acknowledgement

As the Seller I/we understand that will inspect the property for health and safety deficiencies. I/we also understand that public funds may be involved in this transaction and, as such, if the property was built before 1978, a lead- based paint disclosure must be signed by both the buyer and seller, and that a Visual Assessment will be conducted to determine the presence of deteriorated paint.

As the Seller, I/we understand that under the City of Clovis’ program, the property must be currently owner-occupied, vacant for three months at the time of submission of purchase offer, new (never occupied), or renter purchasing the unit. I/we hereby certify that the property is:

☐ Vacant at least 3 months; ☐ Owner-occupied; ☐ New; or ☐ Being Purchased by its Occupant

I/we hereby certify that I have read and understand this “Declaration” and:
☐ a copy of said Notice was given to me prior to the offer to purchase.

If received after presentation of the purchase offer, I/We choose:
☐ to withdraw, or ☐ not to withdraw, from the Purchase Agreement.

__________________________________ _______________________ Seller Date

__________________________________ _______________________ Seller Date
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City of Clovis HOME Program First-Time Homebuyer Program Guidelines

ATTACHMENT G

CITY OF CLOVIS

INSTRUCTIONS TO HOMEBUYER

A. Participant works with lender of choice to obtain the primary lender’s pre -qualification letter.

B. Program Operator reviews paperwork to determine program eligibility and financing affordability for participant.

C. Program Operator staff meets with qualified applicant to provide information relative to the program requirements, the lending process, and homeownership responsibilities.

D. After consultation with Program Operator regarding approved bedroom and bathroom maximums, if any, and HOME Value Limit, participant works with real estate agent to select home. Program disclosures are reviewed with agent for presentation to seller.

The HOME Program allows only homes vacant for three months or more prior to the date of the purchase offer, unless the current tenant is purchasing the home or the seller has been the only occupant during those three months, to prevent displacement of rental occupants.

E. Participant selects home and enters into a purchase contract, contingent upon receiving Program loan approval and achieving Environmental Review clearance (see Section

1.3.D). Primary lender provides the Program Operator with a copy of:
- real estate sales contract, including all addendums and counteroffers, all fully-executed
- residential loan application and credit report
- verified income documentation
- disclosure statement
- proof of personal funds for participation in program
- breakdown of closing costs
- structural pest control clearance
- appraisal with photos and preliminary title report

F. Program Operator has home inspected to document health & safety and code compliance. Notice of any deficiencies or needed corrections are given to participant's real estate agent, with recommended course of action. Only new construction and homes built within the previous 12 months and not previously occupied are exempt from the home inspection requirement.

G. Program Operator requests loan approval from Sponsor’s Loan Review Committee.

Following loan approval, Program Operator prepares Deed of Trust, Promissory Note, Request for Notice of Default, Grant Agreement, Owner-Occupant Agreement with City of Clovis and Escrow Instructions, and requests check and deposits same into escrow. 69 AGENDA ITEM NO. 4.

City of Clovis HOME Program First-Time Homebuyer Program Guidelines

H. Escrow company furnishes Program Operator with proof of documents to be recorded, and any escrow closeout information. After receipt of recorded loan documents, Final escrow Settlement Statement, Insurance Loss Payee Certification , and Final Title Insurance Policy, the Program Operator closes out the loan file. 70 AGENDA ITEM NO. 4.

City of Clovis HOME Program First-Time Homebuyer Program Guidelines

ATTACHMENT H

LEAD-BASED PAINT

VISUAL ASSESSMENT, NOTICE OF PRESUMPTION, AND HAZARD REDUCTION FORM

Section 1: Background Information
Property Address: No LBP found or LBP exempt □
Select one: Visual Assessment □ Presumption □ Hazard Reduction □ Section 2: Visual Assessment. Fill out Sections 1, 2, and 6. If paint stabilization is performed, also fill out Sections 4 and 5 after the work is completed.

Visual Assessment Date: Report Date:

Check if no deteriorated paint found □
Attachment A: Summary where deteriorated paint was found.

Section 3: Notice of Presumption. Fill out Sections 1, 3, 5, and 6. Provide to occupant w/in 15 days of presumption.

Date of Presumption Notice:

Lead-based paint is presumed to be present □ and/or Lead-based paint hazards are presumed to be present □
Attachment B: Summary of Presumption:

Section 4: Notice of Lead-Based Paint Hazard Reduction Activity. Fill out Sections 1, 4, 5, and

6. Provide to occupant w/in 15 days of after work completed.

Date of Hazard Reduction Notice:

Initial Hazard Reduction Notice? Yes □ No □ Start & Completion Dates:

If “No”, dates of previous Hazard Reduction Activity Notices:

Attachment C: Activity locations and types.

Attachment D: Location of building components with lead-based paint remaining in the rooms, spaces, or areas where activities were conducted.

Attachment E: Attach clearance report(s), using DHS form 8552 (and 8551 for abatement activities) Section 5: Resident Receipt of Notice for Presumption or Lead-Based Paint Hazard Reduction Activity
Printed Name: Signature: Date:

Section 6: Contact
Information
Organization:

Contact Name: Contact Signature:

Date: Address: Phone:

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City of Clovis HOME Program First-Time Homebuyer Program Guidelines

ATTACHMENT I

Homebuyer Program Lead Compliance Document Checklist

The following documents should be in each Homebuyer unit file to document compliance with the lead requirements:

Document Name Purpose
✔
Lead Safe Housing Rule Screening Sheet Documents
exemptions

Physical inspection form (HQS or equivalent) Documents visual assessment results

Seller Certification Seller certifies that
paint was stabilized
by qualified workers
and that safe work
practices were
followed during paint
stabilization

Clearance Report and Clearance Review Worksheet Documents that unit passed clearance

Lead-Based Paint and/or Lead-Based Paint Hazards
Disclosure Form DOC_12345.PDF (hud.gov)
Documents that
buyer received
disclosure and
pamphlet.

Lead Hazard Reduction Notice LSHR-Sample-Notice-of-
Lead-Hazard-Reduction.pdf (hudexchange.info)
Documents that
buyer received
required lead hazard
reduction notification.

This was taken from the HUD Website at:
http://portal.hud.gov/hudportal/documents/huddoc?id=20264_leadcompliance.doc

72 AGENDA ITEM NO. 4.
73 AGENDA ITEM NO. 4.

CITY OF CLOVIS HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)

City of Clovis HOME Program First-Time Homebuyer Written Agreement Approved by Department: 10/16/2025
Page: 2
RIDER: Your first mortgage LENDER may or may not have a Rider as part of your Mortgage. A Rider is a supplemental document that modifies or adds specific terms and conditions to the Deed of Trust. The Rider serves as an addendum to the Deed of Trust, customizing and clarifying the mortgage to accommodate specified needs and requirements of th e parties involved, including local requirements of primary mortgage LENDER that are not included in the Deed of Trust. Any Rider to the First -Time Homebuyer Deed of Trust must be approved in advance, in writing by the LENDER, to be valid.

SUBORDINATION: The process of ranking home loans by priority of repayment . First- Time HOMEBUYER loans are generally in a second lien position, behind a primary lender’s mortgage loan. In the event the primary mortgage is paid off, the secondary mortgage moves into first position, unless the Lender agrees to subordinate to a new primary mortgage loan.

THE AGREEMENT:

THIS AGREEMENT is entered into this XX day of MONTH, YEAR by and between the City of Clovis, a State of California municipal corporation (“ the CITY”), and BUYER NAME(S), (the “HOMEBUYER”) and the State of California Department of Housing and Community Development HOME Program as a third-party beneficiary.

WITNESSETH
WHEREAS:

A. The CITY is a current grantee under the State of California HOME Investment Partnerships Program (“ HOME” or “ HOME Program ”) administered by the United States Department of Housing and Urban Development (“ HUD”) through the State of California Department of Housing and Community Development (“Department”) and is authorized by the Department to provide HOMEBUYER assistance in accordance with the Department’s Consolidated Plan; and

B. The HOME regulations at 24 CFR Part 92 govern the CITY’s implementation of the HOME Program and are made a part this Agreement; and

C. The CITY has determined that the H OMEBUYER meets the HOME Program eligibility requirements to purchase the dwelling located at PROPERTYADDRESS (the “Property”) at the price of WRITTEN PURCHASE PRICE ($NUMERIC PURCHASE PRICE, the “ Purchase Price” ) and will assume fee simple ownership upon closing.

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Page: 3
NOW, THEREFORE, in accordance with the mutual understanding and agreements set forth herein, CITY and the HOMEBUYER agree as follows:

SECTION 1. FORM, AMOUNT, AND USE OF ASSISTANCE
The CITY will provide the H OMEBUYER an amount not to exceed WRITTEN DIRECT ASSISTANCE TOTAL ($NUMERIC DIRECT ASSISTANCE TOTAL, the “Loan”) to assist the HOMEBUYER with a down payment, closing costs, and/or a portion of the Purchase Price of the Property, which is considered the direct HOME Assistance to the HOMEBUYER.

The Homebuyer agrees that the HOME Assistance will be used at closing as gap financing to cover closing costs and down payment towards the Purchase Price of the Property. This will reduce the total amount the H OMEBUYER will be required to borrow from a bank, credit union, or other lender in order to purchase the Property.

The amount of HOME Assistance will not be final until the CITY has updated all necessary underwriting and subsidy layering requirements based on final Purchase Price and/or closing costs.

The assistance will be provided in the form of a forty-five-year (45 ) deferred loan . At closing, the Loan will be evidenced by a promissory note executed by the HOMEBUYER in favor of CITY (“Note”) and secured by a deed of trust securing the promissory note to be filed in the official real property records of the county in which the Property is located (“Deed of Trust”). The terms and duration of the Loan are specified in the Note and Deed of Trust, and the Note and Deed of Trust will be released upon repay ment of the Loan under the terms set forth therein. The HOMEBUYER may, but is not required to, prepay the Loan, in whole or in part, at any time.

SECTION 2. AGREEMENT TERM
This Agreement will automatically terminate if the Homebuyer does not close and take title to the Property on or before ABSOLUTE CLOSING DEADLINE.

Otherwise, this Agreement will expire upon expiration of the Affordability Period as defined in Section 6 or satisfaction of the Deed of Trust, whichever is later.

This Agreement shall survive any prepayment of the loan and/or any release of the Deed of Trust that does not include a transfer of the Property and shall continue for the full Affordability Period, as defined in Section 6.

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CITY OF CLOVIS HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)

City of Clovis HOME Program First-Time Homebuyer Written Agreement Approved by Department: 10/16/2025
Page: 4
SECTION 3. APPRAISED PROPERTY VALUE
The CITY certifies that a certified property appraiser has appraised the property that is the subject of this AGREEMENT at a value of WRITTEN APPRAISED VALUE ($NUMERIC APPRAISED VALUE) as evidenced by appraisal dated ENTER DATE.

SECTION 4. ELIGIBLE MODEST HOUSING
The CITY has verified that the purchase price of the housing unit does not exceed 95 percent (95%) of the median purchase price of homes for the area, as set forth in 24 CFR Part 92.254(a) and as codified in CITY’s HOME Program Guidelines and Resale and Recapture Policy.

SECTION 5. PRINCIPAL RESIDENCE REQUIREMENT
During the Affordability Period, barring a sale or transfer of title to the Property which shall be governed by Section 6 below, the H OMEBUYER shall, at all times , maintain the Property as their principal residence. Should the H OMEBUYER cease to maintain the Property as their principal residence, rent the residence to another party, or convert the Property to a non -residential use during the Affordability Period, the HOMEBUYER will be in breach of this Agreement and subject to the Default and Enforcement provisions under Section 13.

SECTION 6. AFFORDABILITY PERIOD
The Affordability Period for the Property will begin on the date of recordation of the grant deed and deed of trust (“Completion Date”) of the transaction and shall end: five (5) years if the amount of HOME assistance is less than twenty-five thousand dollars ($ 25,000); ten (10) years if the amount of HOME assistance is between twenty-five thousand dollars ($25,000) and fifty thousand dollars ($50,000); or fifteen (15) years if the amount of HOME assistance is greater than fifty thousand dollars ($50,000) after the Completion Date (the “Affordability Period ”). The C ITY will provide a formal written notice to the HOMEBUYER of the Completion Date and the resulting expiration date of this Affordability Period and this Agreement . Upon issuance of such notice, this Agreement shall be deemed amended to reflect the expiration date of the Affordability Period.

If the H OMEBUYER sells or transfers ownership of the Property voluntarily or involuntarily, including via foreclosure or deed in lieu of foreclosure, the Affordability Period will end upon the recapture of the full amount of the direct HOME Assistance by the C ITY subject to net proceed availability . Net proceeds are the sales price minus superior loan repayment (other than HOME funds) and any closing costs. 76 AGENDA ITEM NO. 4.

CITY OF CLOVIS HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)

City of Clovis HOME Program First-Time Homebuyer Written Agreement Approved by Department: 10/16/2025
Page: 5
SECTION 7. HOMEBUYER REPRESENTATIONS
By signing this Agreement, the HOMEBUYER attests to the following:
• The HOMEBUYER warrants that all information and documentation provided to the CITY is true and correct. The HOMEBUYER has fully disclosed all income and assets to the CITY and warrants that the HOMEBUYER’s household or financial situation has not changed materially since the application for HOME Assistance was made. The HOMEBUYER acknowledges that any material discrepancies or misstatements may result in the H OMEBUYER’s disqualification from participation in the program and shall be deemed a breach of this Agreement and the Loan, and the HOMEBUYER will be required to repay the entire HOME Loan.
• The H OMEBUYER has completed homeownership counseling as required by the CITY and will complete any post-closing counseling required by the CITY. • The Homebuyer has agreed to purchase a housing unit that meets HOME Program requirements, and that the housing unit must meet Program property standards prior to purchase.
• The HOMEBUYER understands and agrees to the requirements stated in this Agreement for the Agreement Term.

SECTION 8. HOMEBUYER RESPONSIBILITIES
The Homebuyer agrees to the following to meet the requirements of this assistance:
• The HOMEBUYER will provide at least the following buyer funds required for closing:

WRITTEN VALUE ($NUMERIC VALUE) in their own funds toward the purchase price and/or closing costs.
• The H OMEBUYER will occupy the property as the principal residence for the Affordability Period as described in Sections 5 and 6.
• The HOMEBUYER will maintain the property, maintain hazard insurance, and pay all required taxes during the term of this Agreement as described in Section 10. • The H OMEBUYER will provide information as required by the C ITY to monitor compliance with Program requirements.
• The HOMEBUYER will comply with the refinancing policy stated in Section 11. • In the event of sale of the property during the Agreement Term, the HOMEBUYER will notify the CITY and comply with Recapture requirements in Section 9.

SECTION 9. RECAPTURE OF DIRECT HOME ASSISTANCE
In compliance with the HOME Rule at 24 CFR 92.254(a)(5), if the HOMEBUYER sells or otherwise voluntarily or involuntarily transfers title to the Property during the Agreement Term, including transfer as a result of foreclosure or deed in lieu of foreclosure, then the 77 AGENDA ITEM NO. 4.

CITY OF CLOVIS HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)

City of Clovis HOME Program First-Time Homebuyer Written Agreement Approved by Department: 10/16/2025
Page: 6
outstanding direct HOME Assistance to the Homebuyer will be subject to recapture by the CITY.

The “Recapture Amount” will be determined as follows:

The Program Lender recaptures the entire amount of the direct HOME subsidy provided to the homebuyer, plus any interest due according to the terms of the HOME Promissory Note, before the homebuyer receives a return. The recapture amount is limited to the net proceeds available from the sale or foreclosure.

In cases where there is appreciation, (see definition of Appreciation), the homebuyer would retain any net proceeds exceeding the direct HOME assistance plus interest due that is recaptured.

In some cases, such as in declining housing markets, net proceeds available at the time of sale may be insufficient to recapture the entire direct HOME subsidy plus interest due provided to the homebuyer. Since the HOME Final Rule limits recapture to available net proceeds, the Program Lender can recapture only what is available from net proceeds .

In a scenario where recapture provisions state that the entire direct HOME subsidy plus interest will be recaptured, and there are insufficient net proceeds available at sale, the Program Lender is not required to repay to the Department, and the Department is not required to pay back to HUD the difference between the total direct HOME subsidy and the amount available for recapture from net proceeds.

If there are no net proceeds of sale or the net proceeds are insufficient to repay the Recapture Amount, then the entire net proceeds, if any, will be recaptured and retained by CITY to satisfy both this Agreement and the Loan. The term “net proceeds” is defined as the sale price less the balance due on superior secured debt and closing costs incurred by the Homebuyer at sale or transfer . In the event the net proceeds are less than the outstanding Loan balance, the C ITY reserves the right to determine wheth er the sales price is comparable to the sales price in an arms-length transaction for a similar housing unit and to evaluate the closing costs being charged to the Homebuyer to ensure they are reasonable and customary.

Example: A homebuyer receives $10,000 of HOME down payment assistance to purchase a home . The direct HOME subsidy to the homebuyer is $10,000, which results in a five-year Period of Affordability. If the homebuyer sells the home after three years, the grantee or state would recapture, assuming that there are sufficient net proceeds, the entire $10,000 direct HOME subsidy plus any interest due according to the terms of the HOME Promissory Note . The homebuyer would receive any net proceeds in excess of that amount.
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CITY OF CLOVIS HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)

City of Clovis HOME Program First-Time Homebuyer Written Agreement Approved by Department: 10/16/2025
Page: 7
Net proceeds of sale in excess of the outstanding direct HOME Assistance will be retained by the HOMEBUYER.

To facilitate the expeditious administration of this Section, the HOMEBUYER shall provide notice to the CITY of any anticipated transfer of title, including but not limited to a sale or foreclosure.

If the HOMEBUYER is determined to be in violation of this Agreement, the full amount of the Loan shall be due and payable as stated in Section 13.

SECTION 10. INSURANCE AND TAXES
At all times during the term of this Agreement, the H OMEBUYER shall maintain a valid and current hazard insurance policy on the Property for the current appraised value of the Property and naming the C ITY as an additional loss payee in primary coverage . Failure to maintain a valid and current insurance policy will be considered a breach of this Agreement, and the C ITY will have the right to secure insurance for the Property and charge such costs to the HOMEBUYER or to foreclose on its Deed of Trust, if necessary, to protect the HOME program investment. If the Propert y is in a 100-year floodplain, the HOMEBUYER shall maintain a current and valid flood insurance policy on the Property .

Evidence of insurance must be provided at closing of the Loan and annually thereafter upon request of the CITY.

At all times during the term of this Agreement, the HOMEBUYER shall pay property taxes and other assessments due to local taxing authorities.

SECTION 11. REFINANCING
During the Agreement Term, the H OMEBUYER will notify the C ITY of the intent to refinance any loan that is senior to the HOME Deed of Trust . The CITY will approve subordination of the HOME debt to only a new loan in compliance with its then -current refinancing policy.

SECTION 12. CITY RESPONSIBILITIES
As a State Recipient of the HOME Participating Jurisdiction Program, the C ITY is ultimately responsible to the State of California for compliance with all HOME requirements, including the ongoing enforcement of this Agreement regarding principal residency and recapture.
• The CITY has determined the H OMEBUYER to be eligible according to the HOME Program’s income limits and other eligibility requirements and will review any changes to eligibility at time of closing.
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CITY OF CLOVIS HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)

City of Clovis HOME Program First-Time Homebuyer Written Agreement Approved by Department: 10/16/2025
Page: 8
• The C ITY has determined the property to be eligible under the HOME Program’s requirements, including Program purchase price limits , Maximum Per -Unit Subsidy Limits, and property standards.
• The CITY has completed the environmental review required by 24 CFR Part 58 and determined that the property and assistance meet federal requirements. • The CITY has determined the amount of HOMEBUYER’s assistance to be reasonable and in compliance with Program requirements and its underwriting policy and may adjust the assistance based on final price, costs, and underwriting. • The CITY will provide any HOME funds required at closing. • The CITY will record the Deed of Trust and retain this Agreement and the Note for the Agreement Term.

The C ITY will review, monitor, or seek to confirm the H OMEBUYER’s ongoing compliance with the terms of this Agreement and the Loan, including but not limited to principal residency . The CITY will enforce the other provisions of this Agreement and the recorded documents.
• The C ITY may issue notices of violation, require corrective actions, or seek performance using any and all legal remedies available.

SECTION 13. DEFAULT AND ENFORCEMENT
In the event the H OMEBUYER violates any terms of this Agreement or any other agreement between the H OMEBUYER and the C ITY, the C ITY shall issue a notice of violation to the HOMEBUYER. Upon receipt of such a notice, the H OMEBUYER agrees to remedy the violation within 30 days or, in the case of violations requiring longer cure periods, the CITY may allow for a period of up to 90 days to correct the violation. In such cases, the HOMEBUYER must take action to begin corrections within 30 days of the date of the CITY’s notice of violation. Upon the HOMEBUYER’s failure to correct the violation within the allotted time, the CITY may take additional corrective action including suing for specific performance, declaring a default in the Loan, and initiating foreclosure proceedings, and seeking any other available legal remedies.

In the event of the HOMEBUYER’s uncured violation of the principal residency provisions of Section 5, the HOMEBUYER will be required to repay the entire HOME investment in the Property.

SECTION 14. ONGOING ANNUAL RECERTIFICATION REQUIREMENTS CITY is responsible for ensuring that First-Time HOMEBUYERS comply with the requirements of this AGREEMENT and as codified in the loan documents. This includes the requirement that the assisted home be maintained as the principal place of residence by HOMEBUYER for the entirety of the Affordability Period. The Department requires that the CITY performs annual recertification of compliance. The Department monitors the 80 AGENDA ITEM NO. 4.

CITY OF CLOVIS HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)

City of Clovis HOME Program First-Time Homebuyer Written Agreement Approved by Department: 10/16/2025
Page: 9
CITY to ensure that these requirements are met. HOMEBUYER acknowledges that annual reviews will be conducted, and that the HOMEBUYER must comply with the CITY’s recertification process and requirements as part of the conditions for receipt of HOME assistance and that failure to do so constitutes a breach of this AGREEMENT.

SECTION 15. MISCELLANEOUS
This Agreement shall be construed and interpreted in accordance with State of California law. In the event of legal action resulting from a dispute hereunder, the parties agree that the State and federal courts of the State of California shall have jurisdiction and that the proper forum for such action shall be Fresno County, California.

None of the rights and remedies conferred upon or reserved to the C ITY under this Agreement is intended to be exclusive of any other rights, and each right shall be cumulative and concurrent, and may be enforced separately, successively, or together, and may be exercised from time to time as often as may be deemed necessary by the CITY.

Each party has participated in negotiating and drafting this Agreement, so if an ambiguity or a question of interpretation arises, this Agreement is to be construed as if the parties had drafted it jointly. Any rules of construction relating to interpretation against the drafter of an agreement shall not apply to this Agreement and are expressly waived.

The paragraph headings contained herein are for convenience in reference to this Agreement and are not intended to define or to limit the scope of any provision of this Agreement. Where appropriate, all personal pronouns used herein, whether used in the masculine, feminine or neutral gender, shall include all other genders and singular nouns used herein shall include the plural and vice versa.

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First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)

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Page: 10
Executed and effective as of the day and year first above written and for the purposes herein expressed , by the C ITY, signing by and through its Authorized Signer, AUTHORIZED SIGNER NAME, CITY MANAGER, and by the HOMEBUYER(s).

DATE: _____________________________

_________________________ __________________________
Print Name of HOMEBUYER #1 Signature of HOMEBUYER #1

_________________________ __________________________
Print Name of HOMEBUYER #2 Signature of HOMEBUYER #2

CITY OF CLOVIS Authorized Signer

Signature: _______________________________________________

Print Name and Title: _______________________________________, City Manager

All signatures must be acknowledged by a notary.

82 AGENDA ITEM NO. 4.

CITY OF CLOVIS HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)

City of Clovis HOME Program First-Time Homebuyer Written Agreement Approved by Department: 10/16/2025
Page: 11
ATTEST:

By:

Briana Parra, City Clerk
Date:

APPROVED AS TO FORM:

By:

Scott G. Cross, City Attorney

Date:
83 AGENDA ITEM NO. 4.
84 AGENDA ITEM NO. 4.

2 TO SECURE to Lender the repayment of the indebtedness evidenced by Borrower’s Promissory Note dated ___________, 20XX and extensions and renewals thereof (herein “Note”), in the principal sum of _____________ Dollars ($ _________.___), with applicable interest thereon, providing a lump sum payment of principal and interest as applicable with the balance of the indebtedness, if not sooner paid, due and payable as provided in the Note; the payment of all other sums, with interest if applicable thereon, advanc es in accordance herewith to protect the security of this Deed of Trust; the covenants and agreements of that certain Affordable Housing Loan Agreement (herein “Agreement”) executed by Borrower and Lender; and the performance of the covenants and agreements of Borrower herein contained.

BORROWER covenants that Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property, and that the Property is unencumbered except for encumbrances of record. Borrower covenants that Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to encumbrances of record.

BORROWER shall fulfill all of Borrower’s obligations agreed to in th e Affordable Housing Loan Agreement, of even date herewith which Borrower entered into with Lender, which document is on file with Borrower and Lender and is incorporated herein by reference.

UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:

1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal and interest indebtedness.

2. Application of Payments. Unless applicable law provides otherwise, all voluntary payments received by Lender under the Note, and Paragraph 1 hereof, shall be applied by Lender to the payment of principal, then applied to any applicable interest.

3. Subordination. The provisions of this Deed of Trust and Assignment of Rents shall be subordinate to any first lien on the Property (“First Lien”) held by an institutional lender or investor and shall not impair the rights such lender, or investor or such lender’s or investor’s assignee or successor in interest, to exercise its remedies under the First Lien in the event of default under the First Lien by Borrower. Such remedies under the First Lien may include the right of foreclosure or acceptance of a deed or assignment in lieu of foreclosure. If the holder of the First Lien acquires title to the Property pursuant to a deed or assignment in lieu of foreclosure, the City Deed of Trust shall automatically terminate upon such acquisition of title, provided that; 1) the Beneficiary has been given not less than sixty (60) days written notice of a default and opportunity to cure under the First Lien, and (2) the Beneficiary shall not have cured the default under such First Lien within the period provided in such notice sent to the Beneficiary.

4. Prior Mortgages and Deed of Trust; Charges; Liens . Borrower shall perform all of Borrower’s obligations under any mortgage, deed of trust or other security agreements with a lien which has priority over this Deed of Trust, including Borrower ’s covenants to make payments when due.

Borrower shall pay or cause to be paid all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Deed of Trust, and leasehold payments or ground rents, if any.

5. Affordability Period. The Affordability Period for the assistance evidenced by the Note, is as prescribed by the Federal HOME Program, as follows: ______ years, ending on _______, 20__. 85 AGENDA ITEM NO. 4.

3 6. Covenants, Conditions, Restrictions, and Occupancy Requirements. In accordance with the Agreement, the following apply:
a. No transfer of title. Borrower shall not transfer title, sell any interest in the Property, or refinance the Property without City’s approval during the term of the Loan.

b. Principal residence. Borrower shall at all times reside in the unit as their principal residence during the HOME Affordability Period and provide evidence of such to the City on an annual basis.

c. No rental. Borrower shall not vacate the premises for the purposes of renting the unit during the HOME Affordability Period.

d. No commercial use. The property shall not be used for any non-residential or commercial use during the Affordability Period.

e. Maintenance. The Property shall be maintained for the entire 45-year loan period.

Maintenance shall mean compliance with building codes and standards including zoning compliance, most recently adopted by the City. No nuisance shall be maintained on the Property. If upon inspection or observation, the City determines that the Borrower is not maintaining the property and/or illegal construction has taken place or local code enforcement items exists on the Property, then Borrower shall be in default and the Loan principal, interest, and any penalty therewith shall be due and payable, as set forth in the Agreement.

f. Property taxes. Borrower shall at all times during the entire 45-year loan period maintain current the payment of property taxes and provide evidence of such to the City on an annual basis.

g. Insurance. Borrower shall at all times during the entire 45-year loan period maintain the insurance required by the Agreement and provide evidence of such to the City on an annual basis.

h. Proposed transfer or refinance . For the entire 45-year loan period, the Lender shall be notified in writing of any proposed transfer of the property or refinancing not less than sixty (60) days before the proposed transfer or refinancing.

7. Leaseholds; Condominiums; Planned Unit Developments. If this Deed of Trust is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower’s obligations under the declaration or covenants creating or governing the condominium or planned unit development, the by -laws and regulations of the condominium or planned unit development, and constituent documents.

8. Protection of Lender’s Security. If Borrower fails to perform the covenants and agreements contained in this Deed of Trust, Note and Agreement, or if any action or proceeding is commenced which materially affects Lender ’s interest in the Property, the Lender, at Lender ’s option, upon notice to Borrower, may make such appearances, disburse such sums, including reasonable attorney ’s fees, and take such action as is necessary to protect Lender’s interest. If Lender required mortgage insurance as a condition of making the loan secured by this Deed of Trust, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in 86 AGENDA ITEM NO. 4.

4 accordance with Borrower’s and Lender’s written agreement or applicable law. Any amounts disbursed by Lender pursuant to this Paragraph 8, with any applicable interest thereon, at the Note rate, shall become additional indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof Nothing contained in this Paragraph 8 shall require Lender to incur any expense or take any action hereunder.

9. Inspection. Lender may make or cause to be made reasonable entries upon and inspections of the Property, provided that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefore related to Lender’s interest in the Property.

10. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Deed of Trust.

11. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification or amortization of the sums secured by this Deed of Trust granted by Lender to any successors in interest shall not be a waiver of any such obligation. Lender shall not be required to commence proceedings against such successor or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Deed of Trust by reason of any demand made by the original Borrower and Borrower’s successors in interest. Any Forbearance by Lender in exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any such right or remedy.

12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of Lender and Borrower, subject to the restrictions on transfers set forth in this Deed of Trust and the Agreement. All covenants and agreements of Borrower shall be joint and several. Any Borrower who co-signs this Deed of Trust, but does not execute the Note, (a) is co-signing this Deed of Trust only to grant and convey that Borrower’s interest in the Property of Trustee under the terms of this Deed of Trust, (b) is not personally liable on the Note or under this Deed of Trust, and (c) agrees that Lender and any other Borrower hereunder may agree to extend, modify, forbear, or make any other accommodations with regard to the terms of this Deed of Trust or the Note, without that Borrower’s consent and without releasing that Borrower or modifying this Deed of Trust as to that Borrower’s consent and without releasing that Borrower or modifying this Deed of Trust as to that Borrower’s interest in the Property.

13. Notice. Except for any notice required under applicable law to be given in another manner, (a) any notice to Borrower provided for in this Deed of Trust shall be given by delivering it or by mailing such notice by certified mail addressed to Borrower at the Property Address or at such other address as Borrower may designate by notice to Lender as provided herein, and (b) any notice to Lender shall be given by certified mail to Lender’s address stated herein or to such other address as Lender may designate by notice to Borrower as provided herein. Any notice provided for in this Deed of Trust shall be deemed to have been given to Borrower or Lender when given in the manner designated herein.

14. Governing Law; Severability. The state and local laws applicable to this Deed of Trust shall be the laws of the jurisdiction in which the Property is located. The foregoing sentence shall not limit the applicability of Federal law to this Deed of Trust. In the event that any provision or clause of this Deed of Trust or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Deed of Trust or the Note which can be given effect without the conflicting provision, and to this end the 87 AGENDA ITEM NO. 4.

5 provisions of this Deed of Trust and the Note are declared to be severable. As used herein, “costs”, “expenses” and “attorney’s fees” include all sums to the extent not prohibited by applicable law or limited herein.

15. Borrower’s Copy. Borrower shall be furnished a conformed copy of this Deed of Trust , the Agreement and the Note at the time of execution or after recordation hereof.

NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows:

16. Acceleration; Remedies. Borrower acknowledges that the Loan secured by this Deed of Trust is a Deferred Payment Loan and no payments are regularly due. Therefore, the remedies set forth in the Affordable Housing Loan Agreement shall apply. Nevertheless, to the extent acceleration and reinstatement remedies otherwise apply or are required by law, and Borrower is in default under this Deed of trust, the Note, or the Agreement, and that default triggers the payment of the Loan plus any interest due , the following Acceleration provisions shall apply, subject to section 17 governing Borrower’s Reinstatement rights:

Upon Borrower’s breach of any covenant or agreement of Borrower in this Deed of Trust, Note and Agreement, including the occupancy covenant and covenants to pay any sums secured by this Deed of Trust, Lender, prior to acceleration, shall give notice to Borrower as provided in Paragraph 13 hereof specifying: (1) the breach; (2) the action required to cure such a breach; (3) a date, not less than ten (10) days from the date the notice is mailed to Borrower, by which such breach must be cured; and (4) that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by this Deed of Trust and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or other defense of Borrower to acceleration and sale. Lender shall be entitled to collect all reasonable costs and expenses incurred in pursuing the remedies provided in this Paragraph 16, including, but not limited to, reasonable attorney’s fees.

If Lender invokes the power of sale, Lender shall execute or cause Trustee to execute a written notice of the occurrence of an event of default and of Lender’s election to cause the Property to be sold and shall cause such notice to be recorded in each county in which the Property or some part thereof is located.

Lender or Trustee shall mail copies of such notice in the manner prescribed by applicable law. After the lapse of such time as may be required by applicable law, Trustee, without demand on Borrower, shall sell the Property at public auction to the highest bidder at the time and place and under the terms designated in the notice of sale in one or more parcels and in such order as Trustee may determine. Trustee may postpone sale of all or any parcel of the Property by public announcement at the time and place of any previously scheduled sale. Lender or Lender’s designee may purchase the Property at any sale.

Trustee shall deliver to the purchaser Trustee’s deed conveying the Property so sold without any covenant or warranty, expressed or implied. The recitals in the Trustee’s deed shall be prima facie evidence of the truth of the statements made therein. Trustee shall apply the proceeds of the sale in the following order:
(a) to all reasonable costs and expenses of the sale, including, but not limited to, reasonable Trustee ’s and attorney’s fees and costs of title evidence; (b) to all sums secured by this Deed of Trust; and (c) the excess, if any, to the person or persons legally entitled hereto.

17. Borrower’s Right to Reinstate. Notwithstanding Lender’s acceleration of the sums secured by this Deed of Trust to Borrower’s breach, as set forth in Section 16, Borrower shall have the right to have any proceedings begun by Lender to enforce this Deed of Trust or at any time prior to entry of a judgment enforcing this Deed of Trust discontinued at any time prior to five (5) days before sale of the Property pursuant to the power of sale contained in this Deed of Trust or at any time prior to entry of a judgment 88 AGENDA ITEM NO. 4.

6 enforcing this Deed of Trust if: (a) Borrower pay s Lender all sums which would be then due under this Deed of Trust and Note had no acceleration occurred; (b) Borrower cure s all breaches of any other covenants or agreements of Borrower contained in this Deed of Trust; (c) Borrower pays all reasonable expenses incurred by Lender and Trustee in enforcing the covenants and agreements of Borrower contained in this Deed of Trust, and in enforcing Lender ’s and Trustee ’s remedies as provided in Paragraph 16 hereof, including, but not limited to, reasonable attorney’s fees; and (d) Borrower take s such action as Lender may reasonably require to assure that the lien of this Deed of Trust, Lender ’s interest in the Property and Borrower ’s obligation to pay the sums secured by this Deed of Trust shall continue unimpaired. Upon such payment and cure by Borrower, this Deed of Trust and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred.

18. Assignment of Rents: Appointment of Receiver; Lender in Possession. Notwithstanding the prohibition on Borrower renting the Property, and except as provided for in Section 19, as additional security hereunder, Borrower hereby assign s to Lender the rents of the Property, provided that the Borrower shall, prior to acceleration under Paragraph 16 hereof or abandonment of the Property, have the right to collect and retain such rents as they become due and payable. Upon acceleration under Paragraph 16 hereof or abandonment of the Property, Lender, in person, by agent or by judicially appointed receiver shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the Property including those past due. All rents collected by Lender or the receiver shall be applied first to premiums on receiver ’s bonds and reasonable attorney ’s fees, and then to the sums secured by this Deed of Trust. Lender and the receiver shall be liable to account only for those past due. All rents collected by Lender or the receiver shall be applied first to premiums on receiver ’s bonds and reasonable attorney’s fees, and then to the sums secured by this Deed of Trust. Lender and the receiver shall be liable to account only for those rents actually received.

19. Lease of Property . Notwithstanding the prohibition on Borrower renting the Property, i f Borrower rents or leases the Property in violation of this Deed of Trust, Agreement or Note, in addition to any other remedies Lender may have, the rents collected shall be automatically assigned to the Lender and the Borrower shall deliver all rents collected to the Lender until such time as Borrower satisfies its obligations under this Deed of Trust and the Agreement. The Lender may also direct the tenant to remit the rents directly to the Lender until such time as Trustor satisfies its obligations under this Deed of Trust and the Agreement. These rights shall exist regardless of the remedies in the Agreement and regardless of whether Lender initiates a foreclosure action under this Deed of Trust and irrespective of the assignment of rents clause. If the Lender elects to require the tenant to remit the rents directly to the Lender, the Lender shall notify the tenant in writing of the tenant’s obligation to remit the rents to the Lender. Tenant’s obligation to remit the rents directly to the Lender shall thereafter commence within five (5) days after service of the notice of this obligation if the notice is sent by first class mail or within two (2) days after service if the notice is personally served. The Lender shall provide the Borrower with a copy of any notice to the tenant.

The election by the Lender to require the tenant to pay rents to the Lender shall in no way place Lender in the position of landlord and the Lender shall not incur obligations of any kind to the tenant. The Borrower shall be solely responsible for all landlord obligations.

Collection of rents by Lender shall in no way be deemed to cure the default for renting the Property.

20. Reconveyance. Upon payment of all sums secured by this Deed of Trust, Lender shall request Trustee to reconvey the Property and shall surrender this Deed of Trust to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legally entitled thereto. Such person or persons shall pay all costs of recordation, if any. 89 AGENDA ITEM NO. 4.

7 21. Substitute Trustee. Lender, at Lender’s option, may from time to time appoint a successor trustee to any Trustee appointed hereunder by an instrument executed and acknowledged by Lender and recorded in the office of the Recorder of the county where the Property is located. The instrument shall contain the name of the original Lender, Trustee and Borrower, the book and page where this Instrument is recorded and the name and address of the successor trustee. The successor trustee shall, without conveyance of the Property, succeed to all the title, powers and duties conferred upon the Trustee herein and by applicable law. This procedure for substitution of trustee shall govern to the exclusion of all other provisions for substitution.

22. Request for Notices. Borrower requests that copies of the notice of default and notice of sale be sent to Borrower’s address, which is the Property Address. Lender requests that copies of notices of foreclosure from the holder of any lien which has priority over this Deed of Trust be sent to Lender ’s address, as set forth on page one of this Deed of Trust, as provided by Section 2924(b) of the Civil Code of California.

23. Statement of Obligation . Lender may collect a fee not to exceed $ 60 for furnishing the statement of obligation as provided by Section 2643 of the Civil Code of California.

24. Owner-Occupied. Borrower agrees that the Property subject to this Deed of Trust shall be owner-occupied by Borrower for the required Affordability Period, and failure to so occupy constitutes a default under the Deed of Trust, the Agreement and the Note.

25. Proof of Occupancy. Borrower shall be required to submit proof of occupancy and statement of use for each year between January 1 and 31, beginning in 20__. A letter will be sent to the Borrower requesting the information.

IN WITNESS WHEREOF, BORROWER has executed this Deed of Trust.

BORROWER

By: By:

ATTACH NOTARY ACKNOWLEDGMENTS ATTACH NOTARY ACKNOWLEDGMENTS

Name: Name:

Date: Date:

90 AGENDA ITEM NO. 4.

EXHIBIT A
Legal Description

91 AGENDA ITEM NO. 4.
92 AGENDA ITEM NO. 4.
2 5. INTEREST.

The Note Amount shall bear tiered interest rates as set forth below.

Interest shall accrue and be payable as follows:

If paid off during:

Years 1-5, three percent (3%) simple interest per annum.

Years 6-10, two percent (2%) simple interest per annum.

Years 11-20, one percent (1%) simple interest per annum.

Years 21-45, zero percent (0%) simple interest per annum.

The per annum interest is not compounded but is cumulative. Payments made during partial years will be prorated based upon a 360-day period.

6. LOAN PAYMENT; NOTICE.

At least ninety (90) calendar days before the Due Date, the Note Holder shall send written notice to the Borrower informing Borrower of the upcoming Due Date, the principal amount due on the Due Date, and any payment instructions. Borrower shall pay the Principal amount in full on the Due Date by making one lump sum payment in the amount of the outstanding Principal. Borrower shall make the payment to Note Holder at 1033 Fifth Street, Clovis, California, 93612 , unless a different place is stated by the Note Holder in the written notice including the payment instructions.

Notwithstanding anything to the contrary herein, the Note shall be immediately payable and due in full, including any accrued interest, and the principal amount and any interest accrued shall be paid in one lump sum payment upon notice from the Note Holder upon the occurrence of any of the following default events before the Due Date (“Earlier Due Date”):

A. If title is transferred on all, or any part, of the Property described in the Deed of Trust of even date; or

B. If the subject property ceases to be the primary residence of the Borrower during the Affordability Period; or

C. A violation of any of the other Covenants, Conditions, Restrictions, and Occupancy Requirements set forth in the Affordable Housing Loan Agreement.

The Note Holder shall send written notice to Borrower when any default event described above occurs, and the notice shall inform the Borrower of the default event, the Earlier Due Date upon which the principal amount and applicable interest must be paid, a calculation of the principal amount and applicable interest to be paid on the Earlier Due Date, and any payment instructions.

The Earlier Due Date will be selected by the Note Holder but shall be at least ninety (90) calendar days after the date the writ ten notice of the default event is sent to Borrower. Borrower shall pay the principal amount and applicable accrued interest in full on the Earlier Due Date by making one lump sum payment. Borrower shall make the payment to Note Holder at 1033 Fifth Street, Clovis, California, 93612, unless a different place is stated by the Note Holder in the written notice 93 AGENDA ITEM NO. 4.
3 including the payment instructions.

7. BORROWER’S FAILURE TO PAY AS REQUIRED.

Notice from Note Holder

If Borrower does not pay the full amount due under this Note by the Due Date or Earlier Due Date, as applicable, the Note Holder shall send a written notice to Borrower that the Borrower is in default and that the overdue amount must be paid by a certain date. That date must be at least ninety (90) calendar days after the date on which the notice is mailed to Borrower or, if it is not mailed, ninety (90) calendar days after the date on which it is delivered to Borrower.

Payment of Note Holder’s Costs and Expenses

If Borrower defaults under this Note and fails to pay the full amount due by the Due Date or Earlier Due Date, as applicable, the Note Holder shall have the right to recover from Borrower all costs and expenses incurred by the Note Holder to recover the amount owed from Borrower as allowed by applicable law, including reasonable attorney’s fees and costs.

8. PROPERTY STANDARDS.

As set forth in the Affordable Housing Loan Agreement, for the entire 30-year Loan Period, the Property shall be maintained in compliance with building codes and standards including zoning compliance, most recently adopted by the City of Clovis. No nuisance shall be maintained on the Property. If upon inspection or observation, the Lender determines that the Borrower is not maintaining the property and/or illegal construction has taken place or local code enforcement items exists on the Property, then Borrower shall be in default and the Loan principal, interest, and any penalty therewith shall be immediately due and payable, as set forth in the Agreement.

9. THIS NOTE SECURED BY A DEED OF TRUST.

In addition to the protections given to the Note Holder under this Note, a Deed of Trust, dated the same day as this Note, protects the Note Holder from possible losses, which might result if Borrower does not keep the promises which were made in this Note. That Deed of Trust, along with the Affordable Housing Loan Agreement, describes how and under what conditions Borrower may be required to make immediate payment in full of all amounts owed under this Note.

10. BORROWER’S PAYMENTS BEFORE THEY ARE DUE.

Borrower has the right to make payments at any time before they are due. Borrower may make a full pre-payment or a partial pre-payment. A pre-payment of only part of the unpaid Interest and Principal is known as a “partial pre-payment.” A pre-payment of the entire unpaid Interest and Principal is known as a “full pre-payment.” When Borrower makes a pre-payment, Borrower will tell the Note Holder in a letter that a pre-payment is being made.

The Note Holder will apply all pre-payments to principal that Borrower owes under this Note. If Borrower makes a partial pre-payment, there will be no extension to the Note Due Date unless the Note Holder agrees in writing to an extension.
94 AGENDA ITEM NO. 4.
4 11. ATTORNEYS FEES AND COSTS.

Borrower agrees that if any amounts due under this Note are not paid when due, to pay in addition, all costs and expenses of collection and reasonable attorney s fees paid or incurred in connection with the collection or enforcement of this Note, whether or not suit is filed.

12. BORROWER’S WAIVERS.

Borrower waives the right to require the Note Holder to do certain things. Those things are: (a) to demand payment of amounts due (known as “presentment”); (b) to give notice that amounts due have not been paid (known as “notice of dishonor”); and (c) to obtain an official certification of non-payment (known as a “protest”).

13. GIVING OF NOTICES.

Any notice that must be given to Borrower under this Note will be given by delivering it or by mailing it by certified mail addressed to Borrower at the Property Address above. Notices will be delivered or mailed to Borrower at a different address if the Note Holder is provided the address in a written notice.

14. RESPONSIBILITY OF PERSONS UNDER THIS NOTE.

If more than one person signs this Note, each of the persons is fully and personally obligated to pay the full amount owed and to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each of the Borrowers individually or against all of the Borrowers together. This means that any one of the Borrowers may be required to pay all of the amounts owed under this Note.

15. PROOF OF OCCUPANCY

Borrower shall be required to submit proof of occupancy and statement of use for each year between January 1 and 31, beginning in 20 __. A letter will be sent to the Borrower requesting the information.

NOTICE TO BORROWER

Do not sign this Note if it contains blank spaces. All spaces should be completed before you sign.

BORROWER

By: By:

Name: Name:

Date: Date:

95 AGENDA ITEM NO. 4.

TO: Mayor and City Council
FROM: Administration
DATE: November 3, 2025
SUBJECT: Administration – Approval – Res. 25-___, Authorizing the City of Clovis to Renew participation in the Fresno/Clovis Tourism Business Improvement District (FCTBID).

ATTACHMENTS: 1. Resolution 25-___

RECOMMENDATION
That the City Council approve Resolution 25 -___, authorizing the City of Clovis to renew participation in the Fresno/Clovis Tourism Business Improvement District (FCTBID).

EXECUTIVE SUMMARY
Since January 1, 2011, the City of Clovis has participated in the Fresno/Clovis Tourism Business Improvement District. This is an assessment district designed to generate fund ing for tourism- related marketing efforts.

This district includes all lodging businesses , such as hotels, motels, and short -term rentals.

Periodically, the owners of these properties choose, by vote, to renew the FCTBID. A successful renewal vote was held in 2024. Since funds are collected and processed by the City of Clovis, Council’s authorization for renewal is necessary.

BACKGROUND
The FCTBID was originally formed in 2011 as a benefit assessment district proposed to continue a revenue source to help fund destination sales and marketing promotions for Fresno and Clovis lodging businesses and short-term rentals. This approach has been used successfully in other destination areas throughout the state to improve tourism and drive additional room nights to assessed lodging businesses and short-term rentals. The renewed FCTBID includes all lodging businesses, including all short -term rentals, existing and in the future, available for public occupancy located within the boundaries of the cities of Fresno and Clovis. Because the renewed FCTBID will include the City of Clovis, consent must be requested by the City Council of Fresno and granted by the City Council of Clovis in order for the City of Clovis to be included in the creation, operation and future renewals of the FCTBID.

96 AGENDA ITEM NO. 5.

Lodging business owners decided to pursue renewal of the FCTBID in order to continue a revenue source devoted to marketing the cities of Fresno and Clovis as a tourist, meeting and event destination. If renewed, the FCTBID would genera te approximately $3,585,000 on an annual basis for promotion of travel and tourism specific to the cities of Fresno and Clovis.

Tourism Business Improvement Districts (TBIDs) utilize the efficiencies of private sector operation in the market -based promotion of tourism. These special assessment districts allow assessed business owners to organize their efforts to increase tourism. Business owners within the TBID fund the TBID, and those funds are used to provide services that are desired by and benefit the assessed businesses within the TBID.

TBID benefits:
 Funds cannot be diverted for other government programs;  They are customized to fit the needs of each destination;  They allow for a wide range of services , including destination marketing, tourism promotion, and sales lead generation;
 They are designed, created and governed by those who will pay the assessment; and  They provide a stable funding source for tourism promotion.

In California, TBIDs are primarily formed pursuant to the Property and Business Im provement District Law of 1994 (94 Law). This law allows for the creation of special benefit assessment districts to raise funds within a specific geographic area. The key difference between TBIDs and other special benefit assessment districts is that fund s raised are returned to the private non - profit corporation governing the TBID.

The Management District Plan (Attachment 2) includes the proposed boundary of the FCTBID, a service plan and budget and a proposed means of governance. The FCTBID includes all lodging businesses, including short -term rentals, existing and in the future, available for public occupancy within the boundaries of the cities of Fresno and Clovis.

The annual assessment rate is two percent (2%) of gross short -term room rental revenue in years one (1) and two (2) of the term. The assessment rate will automatically increase to two and one-half of one percent (2.5%) of gross short -term room rental revenue in years three (3) through six (6) and will subsequently increase to three percent (3%) of gross short -term room rental revenue in years seven (7) through ten (10) of the term, as outlined in the table below.

Years Assessment
Rate
1 - 2 2%
3 - 6 2.5%
7 - 10 3%

97 AGENDA ITEM NO. 5.

Based on the benefit received, assessments will not be collected on the following stays:
 Stays of more than thirty (30) consecutive days;
 Stays by railroad crews and airline crews;
 Stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty or any federal or California city, county or state government officer or employee when on official business; and  Stays by any occupant whose rent is of a value less than two dollars ($2.00) a day.

The renewed FCTBID will have a ten (10) year term, beginning January 1, 2026, or as soon as possible thereafter, and ending ten (10) years from its start date. The assessment will be implemented beginning January 1, 2026. Once per year beginning on the anniversary of FCTBID renewal there is a thirty (30) day period in which business owners paying fifty percent (50%) or more of the assessment may protest and begin proceedings to terminate the FCTBID.

The cities of Fresno and Clovis are responsible for collection of t he assessment not less than quarterly from each assessed business located in the FCTBID boundaries within each respective city. Clovis forwards the amount collected to the City of Fresno on a quarterly basis. The City of Fresno will forward the assessments received by each city to the Fresno/Clovis Convention and Visitors Bureau, which has the responsibility of managing FCTBID programs as provided in the Management District Plan. The cities of Fresno and Clovis shall be paid a fee equal to one percent (1%) of the amount of assessment collected to cover their costs of collection and administration.

FISCAL IMPACT
City of Clovis is positively impacted by the proposed events. Local businesses benefit from large numbers of people visiting their neighborhood and the City of Clovis benefits from the increased tax revenue.

There is no cost to the City. All necessary actions associated with the FCTBID will be paid by the Fresno/Clovis Conventions and Visitors Bureau. Clovis will be responsible for collecting the assessment from hoteliers and short-term rental owners and will pass the funds through to the FCTBID. The City will be reimbursed for administrative costs of collecting the assessment and transmitting it to the FCTBID.

REASON FOR RECOMMENDATION
The FCTBID is managed by the Fresno/Clovis Convention and Visitors Center (FCCVB), which has the sole responsibility of promoting the Fresno/Clovis region to all travel markets. In partnership with the hospitality industry, FCCVB generates increased visitor spending, local tax receipts and job development.

Since 2011, the City of Clovis’ hotel room inventory has grown from 508 to 1,251; currently, there are six additional properties in various stages of development which will add an addi tional 700 rooms; the average occupancy rate for hotels in Clovis is over 83%; and the combined average occupancy rate for the Fresno/Clovis market is below 65%. This illustrates the success of Clovis as a favored location for overnight stays by visitors.

98 AGENDA ITEM NO. 5.

The work of FCCVB is directly related to the success of Clovis’ tourism and travel program.

ACTIONS FOLLOWING APPROVAL

1. Staff will notify Fresno/Clovis Convention and Visitors Bureau and City of Fresno of Council’s decision.

2. Staff will continue to work with Clovis hoteliers and short -term rental owners on all matters related to FCTBID.

CONFLICT OF INTEREST
None.

Prepared by: Shawn Miller, Business Development Manager

Reviewed by: City Manager AH
99 AGENDA ITEM NO. 5.

Attachment 1
RESOLUTION 25-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVIS

APPROVING THE RENEWAL OF THE FRESNO/CLOVIS TOURISM BUSINESS

IMPROVEMENT DISTRICT

WHEREAS, the City Council of the City of Clovis desires to begin proceedings to renew the Fresno/Clovis Tourism Business Improvement District (FCTBID); and

WHEREAS, the owners of lodging businesses and short-term rental owners located in Clovis have requested that the Council renew the FCTBID; and

WHEREAS, a portion of the territory proposed to be include d in the FCTBID lies within the boundaries of the City of Clovis; and

WHEREAS, the area of the City of Clovis which lies within the boundaries of the proposed FCTBID will, in the opinion of the Council, benefit by the improvements and activities as set forth in the Management District Plan (Attachment A).

NOW, THEREFORE, BE IT RESOLVED by the City of Clovis as follows:

1. The above recitals are true and correct.

2. Consent of the City of Clovis, through its respective City Council, is hereby requested to renew the FCTBID, and to grant to the Council jurisdiction for all the purposes in connection with creation, operation, and future renewals of the proposed FCTBID.

3. The City Clerk of the Clovis City Council is hereby directed to transmit a certified copy of this Resolution to the City Clerk of the City of Fresno.

* * * * *

The foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Clovis held on November 3, 2025, by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED: November 3, 2025

______________________________ ______________________________ Mayor City Clerk

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2026-2035

FRESNO/CLOVIS TOURISM BUSINESS

IMPROVEMENT DISTRICT

MANAGEMENT DISTRICT PLAN
Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.

July 31, 2024
Attachment A
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Contents I. OVERVIEW ......................................................................................................................................... 3 II. BACKGROUND ................................................................................................................................. 5 III. BOUNDARY ........................................................................................................................................ 6 IV. ASSESSMENT BUDGET AND SERVICES ................................................................................ 8 A. Annual Service Plan .............................................................................................................................. 8 B. Annual Budget ..................................................................................................................................... 10 C. California Constitutional Compliance ............................................................................................. 10 D. Assessment ........................................................................................................................................... 12 E. Interest and Overdue Charges .......................................................................................................... 13 F. Time and Manner for Collecting Assessments .............................................................................. 13 V. GOVERNANCE ............................................................................................................................... 15 A. Owners’ Association ........................................................................................................................... 15 B. Brown Act and California Public Records Act Compliance ........................................................ 15 C. Annual Report ..................................................................................................................................... 15 APPENDIX 1 – LAW .................................................................................................................................... 16 APPENDIX 2 – ASSESSED BUSINESSES .............................................................................................. 28 Prepared by Civitas (800)999-7781 www.civitasadvisors.com
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FCTBID Management District Plan 3 July 31, 2024
I. OVERVIEW Developed by Fresno and Clovis lodging businesses and the Fresno/Clovis Convention and Visitors Bureau (FCCVB), the Fresno/Clovis Tourism Business Improvement District (FCTBID) is an assessment district proposed to continue to provide specific benefits to payors, by funding marketing and sales promotion efforts for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors. The FCTBID was initially created in 2010 for a five (5) year term and was subsequently renewed in 2016 for an additional ten (10) year term. The FCCVB and Fresno and Clovis lodging businesses now wish to renew the FCTBID for an additional ten (10) year term. Location: The FCTBID includes all lodging businesses, including all short-term rentals, existing and in the future, available for public occupancy located within the boundaries of the cities of Fresno and Clovis (collectively referred to herein as “assessed businesses”), as shown on the map in Section III. Services: The FCTBID is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales. Destination sales and marketing promotions will increase demand for overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales. Budget: The total FCTBID annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $3,585,000. A similar assessment budget is expected to apply to subsequent years, but this assessment budget is expected to fluctuate as room sales do, as businesses open and close, and as the assessment rate is increased over the duration of the FCTBID as detailed in Section IV. Cost: The annual assessment rate is two percent (2%) of gross short-term room rental revenue in years one (1) and two (2) of the term. The assessment rate will automatically increase to two and one-half of one percent (2.5%) of gross short-term room rental revenue in years three (3) through six (6) and will subsequently increase to three percent (3%) of gross short-term room rental revenue in years seven (7) through ten (10) of the term, as outlined in the table below and detailed in Section IV. Years Assessment Rate 1 - 2 2% 3 - 6 2.5% 7 - 10 3% Based on the benefit received, assessments will not be collected on the following stays: • Stays of more than thirty (30) consecutive days; • Stays by railroad crews and airline crews; • Stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty or any federal or California city, county or state government officer or employee when on official business; and • Stays by any occupant whose rent is of a value less than two dollars ($2.00) a day. 103
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FCTBID Management District Plan 4 July 31, 2024
…………………………………………………………….. Collection: The Cities of Fresno and Clovis will be responsible for collecting the assessment not less than quarterly (including any delinquencies, interest, and overdue charges) from each assessed business located in the boundaries of the FCTBID within each respective city. Each city shall take all reasonable efforts to collect the assessments from each assessed business. Duration: The FCTBID will have a ten (10) year life, beginning January 1, 2026 or as soon as possible thereafter, and ending ten (10) years from its start date. After ten (10) years, the FCTBID may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. (94 Law) if business owners support continuing the FCTBID programs. Management: The FCCVB shall continue to serve as the FCTBID Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Management District Plan (Plan) and must provide annual reports to Fresno City Council. 104
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FCTBID Management District Plan 5 July 31, 2024
II. BACKGROUND TBIDs are an evolution of the traditional Business Improvement District. The first TBID was formed in West Hollywood, California in 1989. Since then, over 100 California destinations have followed suit. In recent years, other states have begun adopting the California model –Illinois, Minnesota, Massachusetts, Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TBID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TBID. Additionally, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TBIDs without a state law. California’s TBIDs collectively raise over $300 million annually for local destination marketing. With competitors raising their budgets, and increasing rivalry for visitor dollars, it is important that businesses continue to invest in stable, commerce-specific marketing programs. TBIDs utilize the efficiencies of private sector operation in the market-based promotion of tourism districts. TBIDs allow tourism business owners to organize their efforts to increase commerce. Business owners within the TBID pay an assessment and those funds are used to provide services that increase commerce. In California, most TBIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TBIDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district. There are many benefits to TBIDs: • Funds must be spent on services and improvements that provide a specific benefit only to those who pay; • Funds cannot be diverted to general government programs; • They are customized to fit the needs of payors in each destination; • They allow for a wide range of services; • They are designed, created and governed by those who will pay the assessment; and • They provide a stable, long-term funding source for tourism promotion. 105
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FCTBID Management District Plan 6 July 31, 2024
III. BOUNDARY The renewed FCTBID will include all lodging businesses, including all short-term rentals, existing and in the future, available for public occupancy located within the boundaries of the cities of Fresno and Clovis (collectively referred to herein as “assessed businesses”), as shown in the map below. Lodging business means: any structure, or any portion of any structure which is occupied or intended or designed for occupancy by transients for dwelling, lodging, or sleeping purposes, and includes any hotel, motel, or bed and breakfast, or other similar structure or portion thereof. Short-term rental means: a dwelling unit, rented in whole or in part, to any persons(s) for transient use of 30 consecutive days or less and includes any tourist home or house, lodging house, rooming house, apartment house, or other similar structure. A dwelling unit within a hotel, motel, or bed and breakfast shall not be considered a short-term rental. A complete listing of assessed businesses within the FCTBID can be found in Appendix 2. The assessed business list was compiled from records provided by each jurisdiction. The list was developed with the most reliable information provided, however, the list may contain discrepancies due to any of the following reasons: 1)The short-term rentals included in the list are businesses that have obtained a permit or license to operate as a short-term rental at the time of renewal, and does not include short-term rentals that are not permitted or licensed to operate as a short-term rental; 2) Short-term rentals may cease operation with little or no notice, and may no longer be operating as a short-term rental; and 3) the short-term rental list was compiled based on the dates shown in Appendix 2, and may not include short-term rentals that began operation after the dates listed. 106
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FCTBID Management District Plan 7 July 31, 2024

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FCTBID Management District Plan 8 July 31, 2024
IV. ASSESSMENT BUDGET AND SERVICES A. Annual Service Plan Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the Cities of conferring the benefits or granting the privileges. The privileges and services provided with the FCTBID funds are destination sales & marketing programs available only to assessed businesses. A service plan assessment budget has been developed to deliver services that benefit the assessed businesses. A detailed annual assessment budget will be developed and approved by the FCCVB. The chart below illustrates the initial annual assessment budget allocations. These activities and budget percent allocations will also apply in subsequent years. The total initial assessment budget is estimated to be $3,585,000.

Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. However, the FCCVB Board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the FCTBID, any and all assessment funds may be used for the costs of defending the FCTBID. Each budget category includes all costs related to providing that service. For example, the destination sales & marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales and marketing program. Staff time dedicated purely to administrative tasks is allocated to the administration portion of the budget. The costs of an individual staff member may be allocated to multiple budget categories. The staffing levels necessary to provide the services below will be determined by the FCCVB on an as-needed basis.

Destination Sales & Marketing, $3,011,400,84%
Administration & Operations, $358,500,10%
Contingency/Renewal, $179,250, 5%
City Administration, $35,850, 1%
Initial Annual Assessment Budget -$3,585,000
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FCTBID Management District Plan 9 July 31, 2024
Destination Sales & Marketing A destination sales & marketing program will promote assessed businesses as tourist, meeting, and event destinations. The destination sales & marketing program will have a central theme of promoting Fresno and Clovis as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed businesses, and may include, but is not limited to, the following activities: • Development and maintenance of a website designed to promote assessed lodging businesses and other internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation and room sales to assessed businesses; • Print ads in magazines and newspapers, television and radio ads targeted at potential visitors to drive overnight visitation and room sales to assessed businesses; • Attendance of trade shows to promote assessed businesses; • Sales blitzes and familiarization tours for assessed businesses; • Preparation and production of collateral promotional materials such as brochures, visitor guides, flyers and maps featuring assessed businesses; • Attendance of professional industry conferences and affiliation events to promote assessed businesses; • Partnership with both local and state tourism organizations to target key international markets to increase overnight visitation at assessed businesses; • Development and implementation of a public relations and communications strategy, inclusive of social media outlets and press release distribution designed to drive overnight visitation at assessed businesses; • Director of Sales, Marketing and/or General Manager meetings to plan and coordinate tourism promotion efforts for assessed businesses; • Education of lodging business management and the owners’ association on marketing strategies best suited to meet assessed businesses’ needs; • Communications and advocacy activities to inform and educate key stakeholders and the public; • Acquisition/utilization of new technologies for novel marketing initiatives; • Development of Return on Investment (ROI) analysis on effectiveness of district funds to improve effectiveness and increase demand for overnight visitation at assessed businesses; • Research and development of a marketing plan to ensure district funds are strategically spent to market assessed lodging businesses; • Lead generation activities designed to attract tourists and group events to assessed businesses; • Maintaining an experienced sales staff of the Owner’s Association to target the meeting and conference market to generate overnight visitation and room sales to assessed businesses; • Maximizing alliances with professional organizations that target group business, or database services that track group opportunities to develop new leads for assessed businesses; • Incentivizing conferences and meetings to book at the destination to increase overnight visitation at assessed businesses; and • Promotion of sporting events to drive overnight visitation and room sales to assessed businesses. 109
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FCTBID Management District Plan 10 July 31, 2024
Administration and Operations The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, and other general administrative costs such as insurance, legal, and accounting fees. City Administration Fee The Cities of Fresno and Clovis shall be paid a fee equal to 1% of the amount of assessment collected to cover their costs of collection and administration. Contingency/Renewal A prudent portion of the budget will be allocated to a contingency fund, to account for lower than anticipated collections. If there are contingency funds collected and near the expiration of the district there are contingency funds remaining, and assessed business owners wish to renew the FCTBID, the contingency funds may be used for renewal costs. B. Annual Budget The total ten (10) year assessment budget is projected at approximately $3,585,000 annually, or $46,605,000 through 2035. A similar assessment budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do, as businesses open and close, and as the assessment rate is increased over the duration of the FCTBID as detailed below and shown on the chart below. The annual assessment rate is two percent (2%) of gross short-term room rental revenue in years one (1) and two (2) of the term. The assessment rate will automatically increase to two and one-half of one percent (2.5%) of gross short-term room rental revenue in years three (3) through six (6) and will subsequently increase to three percent (3%) of gross short-term room rental revenue in years seven (7) through ten (10) of the term. Year Destination Sales & Marketing Administration & Operations Contingency / Renewal City Administration Fee Total 2026 $3,011,400 $358,500 $179,250 $35,850 $3,585,000 2027 $3,011,400 $358,500 $179,250 $35,850 $3,585,000 2028 $3,764,250 $448,125 $224,063 $44,813 $4,481,250 2029 $3,764,250 $448,125 $224,063 $44,813 $4,481,250 2030 $3,764,250 $448,125 $224,063 $44,813 $4,481,250 2031 $3,764,250 $448,125 $224,063 $44,813 $4,481,250 2032 $4,517,100 $537,750 $268,875 $53,775 $5,377,500 2033 $4,517,100 $537,750 $268,875 $53,775 $5,377,500 2034 $4,517,100 $537,750 $268,875 $53,775 $5,377,500 2035 $4,517,100 $537,750 $268,875 $53,775 $5,377,500 Total $39,148,200 $4,660,500 $2,330,250 $466,050 $46,605,000 C. California Constitutional Compliance The FCTBID assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property.1 Rather, the FCTBID assessment is a business-based assessment, and is subject to 1 Jarvis v. the City of San Diego 72 Cal App. 4th 230 110
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FCTBID Management District Plan 11 July 31, 2024
Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the FCTBID, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the Cities of conferring the benefits or providing the services. 1. Specific Benefit Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific businesses within the FCTBID. The activities described in this Plan are specifically targeted to increase demand for short-term sleeping room sales for assessed businesses within the boundaries of the FCTBID, and are narrowly tailored. FCTBID funds will be used exclusively to provide the specific benefit of increased demand for short-term sleeping room sales directly to the assessees. Assessment funds shall not be used to feature non-assessed businesses in FCTBID programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses. Nothing in this Plan limits the ability of the Owners’ Association to enter into private contracts with non-assessed businesses for the provision of services to those businesses. The assessment imposed by this FCTBID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in demand for short-term sleeping room sales. The specific benefit of an increase in demand for short-term sleeping room sales for assessed businesses will be provided only to businesses paying the district assessment, with destination marketing & sales programs promoting businesses paying the FCTBID assessment. The destination marketing & sales programs will be designed to increase short-term sleeping room sales at each assessed businesses. Because they are necessary to provide the destination marketing & sales programs that specifically benefit the assessed businesses, the administration and contingency services also provide the specific benefit of increased demand for short-term sleeping room sales to the assessed businesses. Although the FCTBID, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3 2. Specific Government Service The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.”4 The legislature has recognized that marketing and promotions services like those to be provided by the FCTBID are government services within the meaning of Proposition 265. Further, the legislature has determined 2 Cal. Const. art XIII C § 1(e)(1) 3 Government Code § 53758(a) 4 Cal. Const. art XIII C § 1(e)(2) 5 Government Code § 53758(b) 111
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FCTBID Management District Plan 12 July 31, 2024
that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6 3. Reasonable Cost FCTBID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the FCCVB, and reports submitted on an annual basis to the City of Fresno. Only assessed businesses will be featured in marketing materials, receive sales leads generated from FCTBID-funded activities, be featured in advertising campaigns, and benefit from other FCTBID-funded services. Non-assessed businesses will not receive these, nor any other, FCTBID-funded services and benefits. The FCTBID-funded programs are targeted directly to benefit assessed businesses. It is, however, possible that there will be a spill over benefit to non-assessed businesses. If non-assessed businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-FCTBID funds. FCTBID funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses. D. Assessment The annual assessment rate is two percent (2%) of gross short-term (stays less than 31 days) sleeping room rental revenue, for years one- and two of the ten-year term. In years three through six, the annual assessment rate is two and one half of one percent (2.5%) of gross short-term (stays less than 31 days) sleeping room rental revenue. In years seven through ten, the annual assessment rate is three percent (3%) of gross short-term (stays less than 31 days) sleeping room rental revenue. The annual assessment rate is two percent (2%) of gross short-term room rental revenue in years one (1) and two (2) of the term. The assessment rate will automatically increase to two and one-half of one percent (2.5%) of gross short-term room rental revenue in years three (3) through six (6) and will subsequently increase to three percent (3%) of gross short-term room rental revenue in years seven (7) through ten (10) of the term. Based on the benefit received, assessments will not be collected on the following stays: • Stays of more than thirty (30) consecutive days; • Stays by railroad crews and airline crews; • Stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty or any federal or California city, county or state government officer or employee when on official business; and • Stays by any occupant whose rent is of a value less than two dollars ($2.00) a day. The assessment was calculated based on the total cost of the activities to be provided for the benefit of the assessed businesses within the FCTBID, with costs allocated based on the proportional benefit conferred to each business. Activities funded by the FCTBID, are specifically targeted to increase room nights at assessed businesses. All room night sales do not represent the same benefit to the payors. For example, a higher priced room night is of greater benefit than a lower priced room night because the assessee derives greater revenue. To account for this benefit differential and to make sure 6 Government Code § 53758(b) 112
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FCTBID Management District Plan 13 July 31, 2024
the benefits are proportional, an assessment formula based on a percentage of revenue has been selected. The proposed formula accurately reflects greater benefit to assessed businesses with higher priced room nights. The term “gross short-term sleeping room rental revenue” as used herein means: the consideration charged, whether or not received, for the occupancy of space in an assessed business valued in money, whether to be received in money, goods, labor, or otherwise, including all receipts, cash, credits, and property and services of any kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal, state or local taxes collected, including but not limited to transient occupancy taxes. The assessment is levied upon and a direct obligation of the assessed business. However, the assessed business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the FCTBID assessment is identified separately it shall be disclosed as the “FCTBID Assessment.” As an alternative, the disclosure may include the amount of the FCTBID assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed business even if it is passed on to transients. The assessment shall not be considered revenue for calculation of transient occupancy taxes. Bonds shall not be issued. E. Interest and Overdue Charges Assessed businesses which are delinquent in paying the assessment shall be responsible for paying: 1. Any assessed business which fails to remit any assessment imposed within the time required shall pay an overdue charge of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment. 2. Any assessed business which fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second delinquency overdue charge of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment and the ten percent (10%) overdue charge first imposed. 3. If either City determines that the non-payment of any remittance due under this plan is due to fraud or intent to evade the provisions thereof, an overdue charge of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the overdue charges stated in subsections 1 and 2 of this section. 4. In addition to the overdue charges imposed, any assessed business which fails to remit any assessment imposed shall pay interest at the rate of one percent (1%) per month or fraction thereof on the amount of the assessment, exclusive of overdue charges, from the date on which the remittance first became delinquent until paid. 5. Every overdue charge imposed and such interest as accrues under the provisions of this section shall be merged with and become a part of the assessment herein required to be paid. F. Time and Manner for Collecting Assessments The FCTBID assessment will be implemented beginning January 1, 2026 or as soon as possible thereafter, and ending ten (10) years from its start date. Each city will be responsible for collecting the 113
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FCTBID Management District Plan 14 July 31, 2024
assessment not less than quarterly (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the respective city, in the FCTBID, and forwarding the amount collected to the City of Fresno on a quarterly basis. Each city shall take all reasonable efforts to collect, or cause to be collected, the assessments from each lodging business located within its boundaries, within the FCTBID, including the collection of delinquent assessments. The assessment shall be collected using a return form developed and provided to the assessed businesses by the cities. The City of Fresno shall forward the assessment funds collected, including any delinquencies, penalties and interest, to the Owners’ Association. 114
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FCTBID Management District Plan 15 July 31, 2024
V. GOVERNANCE A. Owners’ Association The City Council, through adoption of this Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the FCTBID as defined in Streets and Highways Code §36612. The City Council of Fresno has determined that the FCCVB will continue to serve as the Owners’ Association for the FCTBID. B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the FCCVB Board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. C. Annual Report The FCCVB shall present an annual report at the end of each year of operation to the Fresno City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include: • Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district. • The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year. • The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. • The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part. 115
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APPENDIX 1 – LAW *** THIS DOCUMENT IS CURRENT THROUGH THE 2023 EXTRA SESSION CH 1, 2023 REGULAR SESSION CH. 890*** (ALL 2023 LEGISLATION) STREETS AND HIGHWAYS CODE DIVISION 18. PARKING PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1. General Provisions ARTICLE 1. Declarations 36600. Citation of part This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.” 36601. Legislative findings and declarations; Legislative guidance The Legislature finds and declares all of the following: (a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements. (d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits: (1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied. (2) Job creation. (3) Business attraction. (4) Business retention. (5) Economic growth. (6) New investments. (f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts. (1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. 116
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(2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore, for special benefits to exist as a separate and distinct category from general benefits, the incidental or collateral effects of those special benefits are inherently part of those special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined. 36602. Purpose of part The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. 36603. Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)). 36603.5 Part prevails over conflicting provisions Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part. 36604. Severability This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes. ARTICLE 2. Definitions 36606. “Activities” “Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district: (a) Promotion of public events. (b) Furnishing of music in any public place. (c) Promotion of tourism within the district. (d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5. “Assessment” “Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district. 117
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36607. “Business” “Business” means all types of businesses and includes financial institutions and professions. 36608. “City” “City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. “City council” “City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4. “Clerk” “Clerk” means the clerk of the legislative body. 36609.5. “General benefit” “General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5. 36610. “Improvement” “Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following: (a) Parking facilities. (b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms. (d) Lighting and heating facilities. (e) Decorations. (f) Parks. (g) Fountains. (h) Planting areas. (i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls. (l) Rehabilitation or removal of existing structures. 36611. “Management district plan”; “Plan” “Management district plan” or “plan” means a proposal as defined in Section 36622. 36612. “Owners’ association” “Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), for all records relating to activities of the district. 36614. “Property” 118
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“Property” means real property situated within a district. 36614.5. “Property and business improvement district”; “District” “Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part. 36614.6. “Property-based assessment” “Property-based assessment” means any assessment made pursuant to this part upon real property. 36614.7. “Property-based district” “Property-based district” means any district in which a city levies a property-based assessment. 36615. “Property owner”; “Business owner”; “Owner” “Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient. 36615.5. “Special benefit” [Effective January 1, 2023] (a) “Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value. (b) “Special benefit” also includes, for purposes of a property-based district, a particular and distinct benefit provided directly to each assessed parcel within the district. Merely because parcels throughout an assessment district share the same special benefits does not make the benefits general. 36616. “Tenant” “Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner. ARTICLE 3 Prior Law 36617. Alternate method of financing certain improvements and activities; Effect on other provisions This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part. CHAPTER 2. Establishment 36620. Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council 119
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A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621. Initiation of proceedings; Petition of property or business owners in proposed district (a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following: (1) A map showing the boundaries of the district. (2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request. (c) The resolution of intention described in subdivision (a) shall contain all of the following: (1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623. 36622. Contents of management district plan The management district plan shall include, but is not limited to, all of the following: (a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries. (b) The name of the proposed district. (c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the estimated cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities 120
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and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision. (e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision. (f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against their property or business. The plan also shall state whether bonds will be issued to finance improvements. (g) The time and manner of collecting the assessments. (h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k) (1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (3) In a property-based district, properties throughout the district may share the same special benefits. In a district with boundaries that define which parcels are to receive improvements, maintenance, or activities over and above those services provided by the city, the improvements, maintenance, or activities themselves may constitute a special benefit. The city may impose assessments that are less than the proportional special benefit conferred, but shall not impose assessments that exceed the reasonable costs of the proportional special benefit conferred. Because one or more parcels pay less than the special benefit conferred does not necessarily mean that other parcels are assessed more than the reasonable cost of their special benefit. (l) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (m) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment (a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing 121
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by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners. 36624. Changes to proposed assessments At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. Resolution of formation (a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following: (1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district. (4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received. (5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district. Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. 122
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(7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit. (8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district. (b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan. 36627. Notice and assessment diagram Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part. 36628. Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone. 36628.5. Assessments on businesses or property owners The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property-based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622. 36629. Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district. 36630. Expiration of district; Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part. CHAPTER 3: Assessments 36631. Time and manner of collection of assessments; Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties. 36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property 123
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(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part. (b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part. (c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part. 36633. Time for contesting validity of assessment The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment. 36634. Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of the resolution of intention (a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following: (1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing. (2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification. (b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention. 36637. Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627. 36638. Assessment as government improvised fee on Civ C § 1770 transaction [Operative July 1, 2024] (a) A business assessment pursuant to this part is a fee imposed by a government on the transaction for purposes of paragraph (29) of subdivision (a) of Section 1770 of the Civil Code. (b) This section shall become operative on July 1, 2024. 124
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CHAPTER 3.5 Financing 36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments (a) The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks–Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years. (c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt. CHAPTER 4. Governance 36650. Report by owners’ association; Approval or modification by city council (a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used. (b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information: (1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year. (4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year. (5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. (6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part. (c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636. The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651. Designation of owners’ association to provide improvements, maintenance, and activities 125
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The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services. CHAPTER 5. Renewal 36660. Renewal of district; Transfer or refund of remaining revenues; District term limit (a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district. CHAPTER 6. Disestablishment 36670. Circumstances permitting disestablishment of district; Procedure (a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances: (1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district (a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in 126
AGENDA ITEM NO. 5.

FCTBID Management District Plan 27 July 31, 2024
which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund. 127
AGENDA ITEM NO. 5.

FCTBID Management District Plan 28 July 31, 2024
APPENDIX 2 – ASSESSED BUSINESSES Business Name Business Address 212 Properties II LLC 5274 N Angus St 9163 Motel 6 4080 N Blackstone Ave 9170 Motel 6 4245 N Blackstone Ave Aaron E Corbin Sr. 6910 E Ramona Way Adam Merrill 4716 E Rialto Ave Ahmad Khattaie 2695 E Spice Way Aircasa LLC 1460 N Del Mar Ave Alexander Frosig and Co. 7181 E Harvard Ave Alexander Medina 2988 E Terrace Ave Alleha Navarro 1337 N Harrison Ave Ambassador Inn & Suites 1804 W Olive Ave Angel Roman Garcia 1430 E La Salle Ave Anissa K And Edward G Zuniga 4708 W Richert Ave Apex Realty Management LLC 2079 N Vahe Ave Arlene Ortiz 720 E Menlo Ave Asia Lovett - Short Term Rental 2617 E Teague Ave Avila Johnathon & Christina 2808 E Sierra Ave Ayres Motel 2710 S Orange Ave B1-66er LLC 1349 N St # B B1-66er LLC 1359 N St Best Western Fresno Airport Hotel 1551 N Peach Ave Best Western Fresno Inn 480 E Shaw Ave Best Western Village Inn 3110 N Blackstone Ave Better Staycation LLC 255 N Van Ness Ave Big Star Motel 2325 S G St Bill And Rose Ann Bogdanov 824 E Serena Ave Blake German 2881 Huntington Blvd Apt 137 Brandon Thomas Aleshire 1025 E Buckingham Way Brenda K Carlson Trs 744 E Birch Ave Brian Fausone 6699 N West Ave Brian Fausone 7089 W Scott Ave Brittney Alicia Watters 6883 E Erin Ave Brittney Boolootian 11625 N Bella Vita Ave Brittney Maldonado 5416 W Swift Ave Bulldog Lane Investments LLC 6020 N Gentry Ave Caitlyn Dervishian 11329 N Garden Sage Ave Capital Republic 3577 Lincoln Ave Catalina Meraz 3429 E Dakota Ave Cavalier California (La Quinta) 2926 Tulare St 128
AGENDA ITEM NO. 5.

FCTBID Management District Plan 29 July 31, 2024
Cayce Baierski 6538 N Valentine Ave Charles Newcomb 9598 N Sharon Ave Chennault bnb LLC 1807 E Chennault Ave Chris Healy 6468 N 7th St Clarion Pointe Fresno Yosemite 4061 N Blackstone Ave Comfort Suites 102 E Herndon Ave Country Inn 6065 N Thesta St Courtyard By Marriott - Fresno 140 E Shaw Ave Cozy Bertha 7138 W San Ramon Ave Cre LLC 3333 N Mariposa St Cre LLC 5901 E Dakota Ave Cre LLC 4465 W Avalon Ave Apt 101 Cre LLC 4465 W Avalon Ave Apt 201 Cre LLC 4465 W Avalon Ave Apt 102 Cre LLC 4636 N Fisher St Cre LLC 5182 E Illinois Ave CRMC Suites 1133 S St Crystal Arredondo Rodriguez 6236 E Farrin Ave Dang Hong Nhat Bui 3544 E Dayton Ave Danh Hong & Thuan T Nguyen Trustees 2321 S Bush Ave David G Pipes 558 S Renn Ave David Thalman 6219 E Sasha Dr Days Inn Fresno South Hwy 99 And Jensen 2640 S 2nd St Days Inn Yosemite Park 6090 N Blackstone Ave Deniz Delamora 1641 E Cole Ave Donald Williams 1006 W Cornell Ave Dorothy Francis 8153 N Cedar Ave Apt 119 Double Deck Stays LLC 214 E Pine Ave Dream Inn 2425 Merced St DT Rentals 68 W Norwich Ave Dye Laurie M 3610 N Wishon Ave Economy Inn 4290 N Blackstone Ave Eduardo Hernandez Mendoza 2446 E Simpson Ave El Muir Motel 2339 S G St Elvin T Tado 4458 W Langden Dr Emerald Oak Rea 3170 Redington Ave Eric Wilson 738 E Yale Ave Ernesto Vera 936 E Cortland Ave Ethel Walker 3746 W Palo Alto Ave Everardo Mendoza-Barragan 210 E Harvard Ave Everrett Chow 1080 E Sierra Ave Executive Inn 797 N Parkway Dr 129
AGENDA ITEM NO. 5.

FCTBID Management District Plan 30 July 31, 2024
Extended Stay America # 486 7135 N Fresno St Fairfield Inn & Suites 330 E Fir Ave Fairfield Inn & Suites Fresno Yosemite International 1535 N Peach Ave Farris 2504 N Farris Ave Federico Castro-Jimenez 5770 W Sample Ave Feil Bryan A & Kimberly R Trustees 430 N Calaveras St Fen Heng 2434 S Marion Ave Fernando Vargas Martinez 1589 E Roberts Ave Formosa Inn 4965 N Forestiere Ave Frank Sanchez Jr 6 E Cortland Ave Fresno Getaway 2489 S Judy Ave Fresno Hotel And Conference Center 2233 Ventura St Fresno Hoteliers, LLC 2570 S East Ave Fresno Ranch Vacation Home Retreat 5139 E Townsend Ave Fresno Short Term Rentals LLC 3339 N Van Ness Blvd Gables Motel 2833 E Church Ave Gabriela Romero Gonzalez 6060 N Lola Ave Garden Inn And Suites 4949 N Forestiere Ave Garden View Inn 7117 N Blackstone Ave Garrick Air Bnb 650 W Donner Ave German Zuniga 6568 E Atchison St German Zuniga 6067 E Dayton Ave German Zuniga 6019 E Hampton Way Good Manor Stays 1245 N Linden Ave Grace Kiburi 3606 N Douglas Ave Gregory Franklin 3073 E Simpson Ave Apt A Grigor & Aida Bursalyan 3259 N Dewey Ave Griselda Avila 5256 N Bond St Griselda G Sanchez 149 W Eden Ave Gruver Properties Gundas LLC 3710 N Maroa Ave Gurbax S Sidhu 3253 N Dante Ave Hampton Inn 1515 N Peach Ave Hampton Inn & Suites Fresno 327 E Fir Ave Hampton Inn And Suites 7194 W Kathryn Ave Hareesh Shankar 2718 E Pryor Dr Heather Lee 3945 N Ricewood Ave Hoan Le Do I Th 3581 Buckingham Ave Holiday Inn Express & Suites 2660 S 2nd St Holiday Inn Express & Suites 7115 N Howard St Holiday Inn Express And Suites 7191 W Kathryn Ave Hometowne Studios Fresno West # 3506 3460 W Shaw Ave 130
AGENDA ITEM NO. 5.

FCTBID Management District Plan 31 July 31, 2024
Homewood Suites Fresno 6820 N Fresno St Hotel Piccadilly 2305 W Shaw Ave Hyatt Place Fresno 7333 N Fresno St Ian Divinagracia 6610 E Berkeley Ave Imade & Moses Osaghae 1399 N Caesar Ave J & I Enterprises 4134 N Maroa Ave J L Marquez Properties LLC 1223 E Sarazen Ave Jacqueline Hensley 6780 E Cornell Ave Jaime Zaragoza And Monica Garcia Villanueva 6602 N West Ave Jason Kenny Chan 1001 E Sussex Way Jessica Galvan 589 E Vartikian Ave Jim Wu Chun Huang 1018 E Sierra Ave JM Holcomb Home 1902 E Deyoung Dr John Chijioke Ihejirika 10454 N Dearing Ave John Therampilly 4832 E San Gabriel Ave Johnathan Ausburn 5328 N Hazel Ave Jon Renge 1380 N Linden Ave Jose Gutierrez Air Bnb 2257 S Miami Ave Joseph & Priscilla Schiedel 5323 W Hampton Way Joseph Warren 1340 N Winery Ave Just Like Home 5340 N Silverado Ave Justin & Heather Aldi 5655 N 8th St Justin & Heather Aldi 687 E Paul Ave Justin & Heather Aldi 1888 E Lester Ave Justin Foraker 1533 N Harrison Ave Kelly And Anne Peck 9560 N Barton Ave Keng H Ng 7567 N 6th St Keng H Ng 3803 E Gettysburg Ave Keng Ng 6201 E Mono St Kevin Hinojosa 5563 W Menlo Ave Kevin Wynne 7064 E Weldon Ave Kim Lay 5764 E Pitt Ave Kings Canyon Motel 4770 E Kings Canyon Rd Kristie Chen 5656 E Lorena Ave Kristie Chen 5768 E Pitt Ave Kyle Woodall 1035 W Alamos Ave La Quinta Inn & Suites 5077 N Cornelia Ave La Quinta Inns # 650 2926 Tulare St Lc Development LLC 10705 N Lanes Rd Lee Houava 5760 N Callisch Ave Libia Espinoza Macias 4123 W Cortland Ave Libia Espinoza Macias 4003 W Dayton Ave 131
AGENDA ITEM NO. 5.

FCTBID Management District Plan 32 July 31, 2024
Lloyd & Kathryn Moritz 6593 E Lowe Ave Ly Hoy Tang 5172 E Balch Ave Mai Luong 8207 N Del Mar Ave Maria Delia Rodriguez 615 W University Ave # 2 Maria L Nou 1550 W Ashlan Ave Apt 223 Martin E Mercado Mercado 6310 N Glenn Ave Marvin A Hooker 1129 N Glenn Ave Melanie Halstead 122 W Cortland Ave Mg Hospitality LLC Dba Fairfield Inn & Suites 1710 W Shaw Ave Mid Century Vacation Home Retreat 5271 E Townsend Ave Mohammad And Maha Mhaissen 2954 E Brandon Ln Mohammad Reza Sabet Ghadam 10373 N Baird Ave Moonstone 35 Pollasky Ave Motel 6 5021 N Barcus Ave Motel 6 445 N Parkway Dr Motel 6 1087 N Parkway Dr Nadezhda & Viktar Korshun 1329 E San Ramon Ave Apt B Nhul Tom Ven 5773 E Lorena Ave Nicole Jones 1930 N Laureen Ave Apt 101 Nicole Jones 1930 N Laureen Ave Apt 102 Nicole Palmer 710 E Peralta Way Niko Homes Inc. 495 W Antonio Dr Nong Lee & Moua Vang 5046 N Annapolis Ave Oceanic Fresno LP 4141 N Blackstone Ave Of Sparta 3098 Poe Ave Old Town Hideaway 319 5th St Ste B Oliva & Associates LLC 126 E Harvard Ave Pablo Solis 6690 E Berkeley Ave Parkway Inn 959 N Parkway Dr Patel Sonal 6980 E Giavanna Ave Peach Avenue 65 Peach Ave Phuong Nguyen Nguyen 6591 E Christine Ave Piccadilly Inn Airport 5115 E Mckinley Ave Piccadilly Inn Express 5113 E Mckinley Ave Pine Tree Apartment 4569 E Alamos Ave Pishon LLC 353 N Diana St Pishon LLC 503 E Sooner Dr Plaza Motel 1940 Broadway St Polina & Ryan W Harbert 2658 E Alluvial Ave Apt 117 Premier Hospitality Services 1328 N Van Ness Ave Prudent And Martin Okoli 2710 N Laverne Ave Pryor Property Management LLC 1564 E Muncie Ave 132
AGENDA ITEM NO. 5.

FCTBID Management District Plan 33 July 31, 2024
Quality Inn & Suites 5455 W Shaw Ave Quality Inn North 6051 N Thesta St Radisson Hotel Fresno Conference Center 1055 Van Ness Ave Rafael Jimenez 4444 E Buckingham Way Rafaela's Cleaning Service Inc. 1168 E Menlo Ave Rall Airbnb 1691 Rall Ave Ramada Fresno 324 E Shaw Ave Ramada Fresno Northwest 5046 N Barcus Ave Raquel Gonzalez 512 E Simpson Ave Rayzon Corporation 306 W Barstow Ave Rayzon Corporation 6413 N Constance Ave Rayzon Corporation 2881 Huntington Blvd Apt 225 Rebekah Donaldson 942 N Harrison Ave Regency Inn 3844 N Blackstone Ave Residence Inn By Marriott - Fresno 5322 N Diana St Revathi Dubagunta 836 E Serena Ave Reyes Real Esta 2496 Los Altos Ave Richard & Vickie Jimenez 5402 N Salinas Ave Richard Lay 5276 E Geary St Robert Klaus Dorn Jr 773 E Birch Ave Rockhouse Investments 2565 E Portland Ave Rodeo Lodge (America's Best) 1616 Clovis Ave Ronisha Lee 6860 E Fedora Ave Rosimeri Gomes Tran 5836 E Erin Ave Ross Bowling 410 E Brown Ave Ruben Navarro 4549 N Glenn Ave Apt 108 S & S Express 9791 N Woodrow Ave Salazar, Nicole & Ruben 1123 E Dakota Ave Salazar, Nicole & Ruben 7441 E Robinson Ave Salvador Palafox 1247 N Thorne Ave Salvador Palafox 3006 N Mariposa St Samurai Properties Inc 1011 N Arthur Ave Samurai Properties Inc 3471 W Roberts Ave Samurai Properties Inc 972 N Arthur Ave Samurai Properties Inc 1536 N Carruth Ave Samurai Properties Inc 1116 W Dakota Ave Samurai Properties Inc 3354 E Simpson Ave Samurai Properties Inc 3337 E Cornell Ave Samurai Properties Inc 4337 N Brooks Ave Samurai Properties Inc 831 W Swift Ave Samurai Properties Inc 1644 W Lansing Way Samurai Properties Inc 1033 W Holland Ave 133
AGENDA ITEM NO. 5.

FCTBID Management District Plan 34 July 31, 2024
Samurai Properties Inc 1581 N Durant Way Samurai Properties Inc 1570 N Durant Way Samurai Properties Inc 939 W Dayton Ave Samurai Properties Inc 2846 N Vagedes Ave Samurai Properties Inc 837 W Harvard Ave San Joaquin Hotel 1309 W Shaw Ave Sanchez Investments & Real Estate LLC 6208 N Fisher St Sands Motel 1441 N Motel Dr Sandy Chong & Connie Chong 1525 N Ferger Ave Santa Fe Hotel, Inc. Dba Shepherd's Inn 935 Santa Fe Ave Scholcomb Family LLC 9244 N Whitney Ave Selena Mitchell 124 E Michigan Ave Sequoia Motel 4707 E Kings Canyon Rd Serena Rimorin & Paul Yang 2918 E Fremont Ave Sergio Avalos & Lilia Barragan 7097 W San Madele Ave Sergio Avalos Ayala & Lilia Barragan 2802 N Brix Ave Shanell Wingfield 5326 E Lyell Ave Shann Hogue 9547 N Sharon Ave Short Term Rental Lisa Schauer 5572 W Home Ave Shuguang Tong 6676 N Nantucket Ave Sierra Inn 949 N Parkway Dr Simonian Property 628 Oxford Ave Smooth Water Properties LLC 548 W Twain Ave Smooth Water Properties LLC 1331 E Loftus Ln Sneha Swarup & Sridhar Lakshminarasimha 9445 N Garden Ave Sobaje 805 Woodworth Ave Soch Dt Fresno, LLC 2926 Tulare St Sonesta Es Suites Fresno 5322 N Diana St Soukanya Xayavong 3227 E Ashlan Ave Spacious Private Suite 947 E Birch Ave Springhill Suites Fresno 6844 N Fresno St Star2 Hotels Inc 6090 N Blackstone Ave Studio 6 Motel 6 Fresno Yosemite 6730 N Blackstone Ave Summerfield Inn 6309 N Blackstone Ave Susie Air LLC 1715 W Clinton Ave Apt 105 Susie Air LLC 1715 W Clinton Ave Apt 111 Susie Air LLC 1715 W Clinton Ave Apt 112 Susie Air LLC 1715 W Clinton Ave Apt 126 Sylvia Mata 744 E Voorman Ave T & G Furnished Rentals LLC 6952 E Simpson Ave T & G Furnished Rentals LLC 6206 E Fedora Ave Tania Hernandez 642 E Garland Ave 134
AGENDA ITEM NO. 5.

FCTBID Management District Plan 35 July 31, 2024
Tejinder Randhawa 2824 E Teaberry Dr The Mission Investment Group 136 W Sierra Ave The Morris Resort 7253 W Morris Ave Thuan Duong 2170 E Sawgrass Ave Tony Rodriguez 255 W Locust Ave Tourig Properties LLC 4334 N Emerson Ave Apt 101 Tourig Properties LLC 4334 N Emerson Ave Apt 102 Towneplace Suites By Marriott 7127 N Fresno St Travel Inn 1444 W White Ave Travelodge 2127 Inyo St Travelodge Fresno Yosemite 3876 N Blackstone Ave Tri Wade Homes Inc 2416 S Preuss Ave Tri Wade Homes Inc 3368 E Hampton Way Tri Wade Homes Inc 1418 W Alluvial Ave Tripp Elmer D & Teofila B 2361 N Gilroy Ave Twenty Nineteen LLC 386 N Calaveras St University Inn 2655 E Shaw Ave University Square Hotel 4961 N Cedar Ave Upscale Tropical Home 5160 W Oslin Ave Valley Inn 933 N Parkway Dr Venture Enterprise LLC 3611 N Douglas Ave Vernon Mello 2975 E Austin Way Vicente C Sanchez 6109 N Caspian Ave Victoria Lay And Fen Heng 5765 E Truman Ave Villa Motel 817 N Parkway Dr Wesley Fu 4481 E Ashlan Ave Wyndham Garden Fresno Yosemite Airport 5090 E Clinton Way Xiong Paradise Stay 5022 N Annapolis Ave Xj Properties LLC 3331 E Palo Alto Ave Xj Properties LLC 5327 N El Sol Ave Xj Properties LLC 5693 N Raisina Ave Xj Properties LLC 842 W Pine Ave Xu Yi Qiang 1483 East Portals Avenue Zheng Xiaolian & Zhen Xu 9133 N Stoneridge Ln 135
AGENDA ITEM NO. 5.

TO: Mayor and City Council
FROM: General Services
DATE: November 3, 2025
SUBJECT: General Services - Approval - Waive the City’s Usual Purchasing Requirements and Authorize the City Manager to Approve the Purchase of Four (4) Electric Dodge Ram ProMasters for $ 1,361,697.48, Utilizing the California Association for Cooperative Transportation (CalACT) Competitive Bid Award; and Approval – Res. 25-___, Amending the FY 2025-26 General Services Department Transit Fund Budget to Include CMAQ and STA Funding for the Vehicle Purchase.

ATTACHMENTS: 1. Resolution 25-___, Budget Amendment

2. Vehicle Quote – RO Bus Sales

RECOMMENDATION
For City Council to waive the usual purchasing requirements and authorize the City Manager to approve the purchase of four (4) electric Dodge Ram ProMasters for $1,361,697.48, utilizing the CalACT competitive bid award ; and Approve a Resolution Amending the FY 2025 -26 General Services Department Transit Fund Budget.

EXECUTIVE SUMMARY
The City of Clovis was awarded the FY 2025 -26 CMAQ Improvement Program Grant for the Zero Emission Vehicle Purchase Project . The proposal includes the purchase of four (4) zero - emission vehicles. Staff recommends the purchase of four (4) electric Dodge Ram ProMasters.

These zero-emission vehicles will serve as replacements for Clovis Transit's existing fleet. This purchase will enhance Clovis T ransit’s fleet, improving its overall state of good repair, and advancing our transition to a zero-emission fleet. The cost of the four (4) Dodge Ram ProMasters is $1,361,697.48. Clovis Transit’s use of the CalACT bid is within the City of Clovis Purchasing Policy, Section IV, C, 1, b, (1).

BACKGROUND
In March of 2025, Clovis Transit submitted three projects for the Fresno Council of Governments (FCOG) call for projects under the CMAQ Improvement Program, Clovis Transit was awarded the Zero Emission Vehicle Purchase Project. This project will support Clovis Transit’s transition to a zero-emission fleet. The selected vehicles will reduce greenhouse gas emissions, improve air quality, and provide a safer, more reliable, and more comfortable experience for our passengers. Over the last four years, Clovis Transit has experienced a significant increase in 136
AGENDA ITEM NO. 6.
demand for both services: 164% for paratransit services and 112% for fixed-route services. The purchase of these four (4) zero-emission vehicles will support our effort to serve our community's needs with reliable, environmentally friendly, and safe vehicles.

In 2010, following the end of the Caltrans purchasing cooperative, CalACT created a purchasing cooperative administered by Basin Transit Authority to assist small and medium -sized transit agencies with vehicle procurements.

The CalACT purchasing cooperative awards bid positions in accordance with the Federal Transit Administration (FTA) and California Department of Transportation regulations and has been audited by both agencies with no findings. The purchasing cooperative is also compliant with Buy America requirements. The purchase of transit vehicles requires technical expertise and a broad scope of knowledge of bus manufacturing concepts. By utilizing the cooperative and most recent agreement RFP No. 20-01, Clovis Transit can purchase the vehicles our operation needs at a competitive cost for a 1.5% procurement fee.

Vehicle specifications and options were listed in the CalAC T request for proposal and the vendor’s proposals. These specifications meet or exceed our transit operation’s desired vehicle design and capacity. The Dodge Ram ProMaster is a low -floor, zero-emissions electric vehicle with an estimated city range of 150-175 miles. The capacity of this vehicle is eight (8) passengers or six (6) passengers with two (2) mobility devices. The vehicle will be equipped with level three (3) fast charging capabilities to facilitate charging with the existing charging infrastructure.

FISCAL IMPACT
The purchase of four (4) electric Dodge Ram ProMaster vehicles will be predominantly funded with CMAQ funds, and the City will provide a local match of 11.47% of the project cost with Transportation Development Act (TDA) STA funds.

The breakdown of the funding is as follows:

CMAQ Funding: $1,205,511
Local Match - TDA (STA) $156,187
Total Project Cost: $1,361,698

Pricing for the recommended purchase is as follows:

 Proposed four (4) electric Dodge Ram ProMasters, including options, tax, and procurement fee: $1,361,697.48.
__________________________________________________________________________

REASON FOR RECOMMENDATION
The City of Clovis was awarded CMAQ funding to replace transit fleet vehicles and support its transition to a zero-emission fleet. Clovis Transit has an aging fleet with more than twenty (20) vehicles exceeding their useful life . CMAQ funding will facilitate the purchase of four (4) zero- emission vehicles that will provide cleaner alternatives, decrease pollution, and enhance air quality. These zero -emission vehicles will support Clovis T ransit in our transition to a zero- emission fleet.
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ACTIONS FOLLOWING APPROVAL
Following approval, finance staff will update the budget , transit staff will prepare a purchase order for the City Manager’s approval, and vehicles will be ordered. Vehicles are expected to be delivered within six to nine months.

CONFLICT OF INTEREST
None.

Prepared by: Susanna Herrera, Management Analyst

Reviewed by: City Manager AH

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AGENDA ITEM NO. 6.

ATTACHMENT 1
RESOLUTION 25-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVIS
APPROVING AN AMENDMENT TO THE FY2025-26 GENERAL SERVICES

DEPARTMENT BUDGET

WHEREAS, the City Council adopted the FY2025-26 city budget on June 9, 2025; and

WHEREAS, additional funding for Transit became available throughout the year; and

WHEREAS, these revenues and expenditures were not included in the original adopted budget; and

WHEREAS, the additional funds are intended for the Transit fund.

NOW, THEREFORE BE IT RESO LVED, that the City of Clovis hereby approves the budget amendment as shown in the “Summary of Expenditures/Revenues by Department” and “Summary of Expenditures/Revenues by Fund” as Attachment A.

* * * * *

The foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Clovis held on November 3, 2025, by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED: November 3, 2025

_____________________________ __________________________ Mayor City Clerk

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AGENDA ITEM NO. 6.

ATTACHMENT A

SUMMARY OF EXPENDITURES BY DEPARTMENT

DEPARTMENT – GENERAL SERVICES

Transit – 34700-68725 $1,361,700

TOTAL DEPARTMENT $1,361,700

SUMMARY OF EXPENDITURES BY FUND

Transit Fund – 34700-68725 $1,361,700

TOTAL TRANSIT FUND $1,361,700

___________________________________________________________________

SUMMARY OF REVENUES BY DEPARTMENT

DEPARTMENT – GENERAL SERVICES

Transit
CMAQ Federal Funding CAP – Account 34700-45053 $1,205,500 State Transit Assistance (STA) – Account 34700-45066 $156,200

TOTAL DEPARTMENT $1,361,700

SUMMARY OF REVENUES BY FUND

Transit Fund
CMAQ Federal Funding CAP – Account 34700-45053 $1,205,500 State Transit Assistance (STA) – Account 34700-45066 $156,200

TOTAL TRANSIT FUND $1,361,700

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AGENDA ITEM NO. 6.

VIN: TBD
Invoice: TBD
Stock Number: TBD
Date: 10/10/2025
Agency: Vehicle Type:

Contact: Year:

Address: Manufacturer:

City/ST/Zip: Model:

Phone/Fax: Type:

Email: Passenger:

P.O. # Lift Manufacturer:

Sales Person: Lift Type:

Ford GPC Seat Type:

Quantity: Price Ext. Price ADA
1 $284,337.05 $284,337.05 $78,139.48
Published Options
1 $1,239.23 $1,239.23
1 $1,921.88 $1,921.88
1 $9,609.38 $9,609.38
Non-Published Options
1 $4,150.00 $4,150.00
1 $560.00 $560.00 $560.00
1 $750.00 $750.00 $750.00
1 $1,240.00 $1,240.00 $1,240.00
1 $1,500.00 $1,500.00
2 $165.00 $330.00
1 $1,415.70 $1,415.70
6 $235.00 $1,410.00
1 $507.48 $507.48
1 $3,991.71 $3,991.71
Subtotal
Class P - Base Price $284,337.05
Published Options $12,770.49
DISCLAIMER OF DELIVERY Non-Published Options $15,854.89 Total $312,962.43 $80,689.48
Doc Prep Fee $470.75
Non-Taxable $80,689.48
Taxable Amount $232,272.95
Tax Total $20,846.50 8.975%
Subtotal $334,279.68
Calact Fee $4,694.44 1.5%
DMV Fee $80.00
Tire Fee $7.00
Delivery Fee $1,363.25 Zone 3
Total $340,424.37
Number of Units 4
Final Total $1,361,697.48
10/10/2025
Date Date RO Limited Warranty (30 Days)
(Check Box)
THE SIGNER OF THE ABOVE AGREEMENT MUST BE AUTHORIZED TO SIGN ON x Factory Certified Warranty BEHALF OF THE PURCHASING ENTITY AND OR INDIVIDUAL (Check Box) As Is, No Warranty
Make Check Payable to: R O Bus Sales
Mpower Assist Grab Handle
Horizontal Wall Grabrail at Wheelchair position - Stainless Steel Upgrade Storage Pod to Technology Cabinet: Storage Box, Slide-Out Shelves, Electronics In Co-Pilot Seat Area (Requires Co-Pilot Seat Removal), (2) Power Block Prewire City of Clovis
Nick Chin
1033 5th St
Clovis, CA 93612
(559) 324-2130
Diagnostic Tool (One bus, hardware package) Telematics Support Pkg - Free for the first Year, Cost per year
Fast Charge Upgrade, RAM 159 BEV, Level 3 Charging Kit, for DC Fast Charger RO Bus Sales expressly disclaims all
warranties—express or implied—including,
but not limited to, any implied warranties of
merchantability or fitness for a particular
purpose. No agent or fitness for a particular
purpose. No agent or employee of RO Bus
Sales is authorized to assume or modify any
warranty obligations on behalf of the
company.

Delivery is expected within 365 days from the
date of order. However, delivery may occur
sooner depending on production schedules.

Delivery timelines may be extended if delays
occur due to OEM production, supply chain
disruptions, or other unforeseen circumstances
beyond the control of RO Bus Sales.

Sales Representative's Signature
Nick Chin
Purchaser Name
Purchaser's Signature
Additional programmed key fobs
MorRyde Suspension
Dual USB Charging Ports
Rear 10 Inch Step Riser (From Flat Floor to Back Row)
Sportworks - Apex 2 Bike Rack Kit
CalACT RFP 20-01 ZEB - Quote Form

DISCLAIMER OF WARRANTIES
Joe Machin
Class Z1 LF - Ram Promaster (159)
Sunset Vans - Class Z1 LF - Ram Promaster 159" Lowfloor Step in Side Wheelchair Position, (2) Wheelchair Positions, 46" Plug Door, Interior Dome Lights, Door Entrance LED Lighting, ABS Interior, Driver Heavy Duty Running Board, Rear A/C System, Docket 90, 6 GO-ES Seats Freedman, Manual Swing 32" Ramp, Interlock for Ramp, Back Up Alarm, Entrance Grab Bar, Safety Kit, Window Tint. Range: Mid-Range Highway: 125–150 Miles | Urban: 150–175 Miles Vehicle Description
2025
Ram
Quote Valid For 30 Days
Sales Representative
L-Track floor anchors and restraints.

Full Graphics & Wrap Installation
GO-ES Seats
Front Passenger Seat Delete Includes Shunt Pin for Disable of Airbag Light and Seatbelt Light N/A
Promaster 159
159 ELECTRIC
6 Passenger / (2) Wheelchair Positions
MPower
32" Manual Swing Ramp
[email protected]
TBD
Joe Machin
RO Bus Sales
2701 Westwood Dr, Las Vegas NV, 89109
Phone/Fax: (702) 798-0029 / (702) 835-1434
ATTACHMENT 2
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AGENDA ITEM NO. 6.
142
AGENDA ITEM NO. 6.

TO: Mayor and City Council
FROM: General Services
DATE: November 3, 2025
SUBJECT: General Services – Approval – Authorize the City Manager to Execute the Second Amendment to Spare Labs, Inc., Agreement for an Amount Not to Exceed $60,000 to Account for Additional Vehicles on the Spare Platform; and add the Spare One Trip Module for Fixed -Route and Microtransit Service Expansion.

ATTACHMENTS: 1. Original Agreement

2. First Amendment

3. Second Amendment

RECOMMENDATION
For City Council to approve and authorize the City Manager to execute the Second Amendment to the agreement with Spare Labs, Inc. (Spare), agreement to account for additional vehicles needed to meet the increased paratransit ridership, to add the Spare One trip planning module to assist with the fixed -route and microtransit service expansion , and to increase the not-to- exceed amount of the agreement by $60,000.

EXECUTIVE SUMMARY
Staff recommends approval and execution of the Second Amendment to the agreement with Spare. Clovis Transit and Spare entered into a n agreement on June 1, 2022, for an initial term of three (3) years for Spare’s dispatch software (Software -as-a-Service “SaaS”) to be used for Round Up paratransit services . On June 1, 2025, the First Amendment to the agreement extended the Agreement by two (2) years and provided additional funds to support the increased number of vehicles needed to meet growing service demands.

The Second Amendment to the agreement increases the agreement amount to account for additional vehicles needed to meet continuously growing paratransit ridership and to incorporate the Spare One trip planning module, which will assist dispatch with the expansion of fixed-route and microtransit services. The costs for adding vehicles to the Spare Platform, the new Spare One module, and associated expenses will be paid through State Transit Assistance (STA) funds already received.

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BACKGROUND
In 2021, Clovis Transit introduced new paratransit dispatch software after determining the existing program no longer met operational requirements. Spare’s innovative platform aligned with Clovis Transit’s objectives by enhancing service, improving efficiency, and reducing costs.

With the upcoming fixed route expansion from two (2) to eight (8) routes, Clovis Transit is launching a microtransit service to bring passengers in outlying areas to designated fixed route stops. Microtransit passengers will be able to book rides with the Clovis Transit app from the Spare Platform.

The Spare One module provides seamless coordination between microtransit and fixed -route services to support comprehensive trip planni ng within the Clovis Transit app. Passengers will be provided with accurate, up-to-date arrival and departure information, as well as real-time bus locations and service notifications. The module will also collect data and provide comprehensive reporting to support ongoing service improvements.

FISCAL IMPACT
Existing State Transit Assistance (STA) funds are held in the City’s Transit account and will be utilized to fund Spare’s second agreement amendment in the amount of $60,000.

REASON FOR RECOMMENDATION
Since its implementation three years ago, the Spare Platform has improved efficiency, reduced operational costs, and enhanced paratransit services for passengers. Based on the proven success of Spare’s innovative platform, Clovis Transit recommends adding the Spare One module to integrate both paratransit and fixed -route services into the Clovis Transit App. The addition of Spare One will offer microtransit and fixed -route passengers a streamlined trip planning experience. Without Spare One, microtransit passengers would be required to book a trip through the Clovis Transit app and then utilize a third-party app to plan the rest of their fixed- route trip.

ACTIONS FOLLOWING APPROVAL
The City Manager will execute the Second Amendment to the agreement with Spare Labs, Inc., to account for the use of additional vehicles on the Spare Platform and the Spare One trip planning module, which will support the expansion of fixed-route and microtransit service s.

Clovis Transit staff will issue a purchase order for the software.

CONFLICT OF INTEREST
None.

Prepared by: Nick Chin, Transit Manager

Reviewed by: City Manager AH
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CITY OF CLOVIS

SECOND AMENDMENT TO

CONTRACT SERVICES AGREEMENT
This Second Amendment to Contract Services Agreement ("Second Amendment") is entered into between the City of Clovis, a California general law city ("City") and Spare Labs Inc. ("Contractor") with respect to the following recitals, which are a substantive part of this Second Amendment. This Second Amendment shall be effective on November 4, 2025 (“Effective Date”).

RECITALS
WHEREAS, City and Contractor entered into that certain Contract Service Agreement dated June 1, 2022 ("Agreement") to provide the Spare Platform (Software -as-a-Service “SAAS” ), the terms of which are incorporated herein by this reference; and WHEREAS, Contractor and City entered into a First Amendment to the Agreement effective on June 1, 2025 (“First Amendment”), which is incorporated herein by this reference; and WHEREAS, Contractor has been diligently undertaking its responsibilities as identified in the Agreement since that time : and
WHEREAS, City has determined that additional services are necessary and requested an updated Scope of Services proposal from Con tractor to include all services under the Agreement and the additional services desired by the City , the updated Scope of Services is attached hereto as Exhibit A and incorporated here in by this reference; and WHEREAS, Contractor proposes and desires to perform the additional services reflected in the updated Scope of Services for an amount not to exceed sixty thousand dollars ($ 60,000), which additional amount is acceptable to City but will result in the total compensation payable to Contractor exceeding the previously authorized amount in the Agreement; and WHEREAS, Contractor understands that, if City receives funding from the Federal Transit Administration (FTA), Contractor will cooperate with City to ensure compliance with all applicable federal requirements in performing services under the A greement.

WHEREAS, City and Contractor desire to amend the Agreement to reflect the changes in the Scope of Services and the authorized amount payable to Contractor and add a section to reflect the City’s and Contractor’s responsibilities to ensure compliance with federal requirements as provided herein.

NOW THEREFORE, in consideration of the mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and Contractor agree as follows:

ATTACHMENT 3
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2 AGREEMENT:

1. Recitals. The Recitals stated above are true and correct and are a substantive part of this Second Amendment.

2. Change in Scope of Services. The Services to be performed by Con tractor shall be those services described in the Exhibits attached to the Agreement and Exhibit A attached to this Second Amendment and incorporated herein by reference.

Such changes include providing the Spare Platform for additional vehicles as required by the City’s public transit system for the term of th e Agreement. Contractor further grants the City the right to implement and utilize its Spare One trip planning module to assist with the fixed-route and microtransit service expansion for the term of th e Agreement. Contractor hereby acknowledges and agrees to the addition of such terms and Services and the revised compensation rates included in Exhibit A attached hereto.

Contractor and City understand that the compensation rates set forth in Exhibit A attached hereto may change during the term of th e Agreement. Any change in compensation shall be subject to the maximum payment for services in Section 3 below, unless otherwise agreed to in writing signed by the parties.

3. Payment for Services. The payment for Services referenced in Section 4 of th e Agreement is hereby increased under this Second Amendment by an amount not to exceed sixty thousand dollars ($ 60,000), to account for the additional services reflected in the updated Scope of Services and potential future rate changes. The total compensation payable to Con tractor for all Services performed under the Agreement and this Second Amendment shall not exceed the sum total of four hundred twenty-five thousand dollars ($ 425,000).

4. Addition of New Section. The Agreement is amended to include the following new section, which shall be inserted as Section 45 of the Agreement as follows:

45. Incorporation of Federal Transit Administration Terms. In the event the City receives funding from the Federal Transit Administration (“FTA”), and City determines FTA funds will be used to pay compensation to Contractor under this Agreement, the Contractor shall cooperate with the City in amending this Agreement, as City determines to be reasonably necessary, to ensure this Agreement complies with all applicable federal laws, regulations, and requirements when using federal funds.

5. All Other Terms Remain in Effect. Except as expressly set forth herein, all other terms of the Agreement and the First Amendment shall remain unchanged and in full force and effect, including all capitalized terms defined in the Agreement and the First Amendment , unless otherwise defined in this Second Amendment, and the Agreement shall be interpreted so as to give full force and effect to this Second Amendment.
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3 Now, therefore, the City and Contractor have executed this Second Amendment to be effective on the Effective Date provided above.

CONTRACTOR CITY OF CLOVIS
By: ___________________________ By: ______________________________ James McCarthy, VP of Growth Andrew Haussler, City Manager Date: __________________ Date: ______________________
ATTEST
_______________________________
Briana Parra, City Clerk

APPROVED AS TO FORM
_______________________________
Scott G. Cross, City Attorney
10 / 15 / 2025
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4 EXHIBIT A

UPDATED SCOPE OF SERVICES
Spare Platform (SaaS), including Spare One—a streamlined mobility management solution designed for efficient single-vehicle or small-scale deployments in the City of Clovis (the “Service(s)”). Spare One offers access to all essential platform features via a City of Clovis-branded app.

The Service(s) specifically incorporate features for a unified mobility experience:
• Fixed Route and Real-Time Integration: Full integration with fixed route GTFS and real-time (GTFS-RT) feeds, providing users with accurate, up-to-date arrival and departure information directly in the Spare App.
• Multimodal Connectivity: Features enabling seamless coordination between on-demand services, fixed-route transit, and other transportation options to support comprehensive trip planning.
• Advanced Journey Planning: Empowers riders to view, select, and combine various mobility modes within the app. Dynamic routing and optimized trip accuracy are ensured by real-time traffic data from Google Live Traffic.

Service Capacity
Service includes:
• Full access to the City of Clovis branded Rider app and Spare Driver app. • Spare Platform administration panel and system administrator training. • Integrated fixed route data (GTFS/GTFS-RT)and multimodal trip booking capability. • Real-time journey planning and routing informed by Google Live Traffic information.

Google Live Traffic Integration
Background:

With the City of Clovis committing to use of Spare One, Spare is willing to offer the first-gen Google Live Traffic integration completely free for all of City of Clovis’on-demand vehicles.

Services:

Spare Platform (SaaS)with Google Live Traffic integration (“Google Live Traffic Integration”), which enhances Spare Engine’s optimization logic and the Driver App experience using real-time Google Maps traffic data. This integration dynamically adjusts trip manifests based on live road conditions, ensuring more intelligent, real-time routing for the City of Clovis (the “Service(s)”).

Service Capacity:

The service includes Spare Engine’s optimization enhancements powered by Google Live Traffic, turn- by-turn Google Maps navigation in the Driver App, dynamic trip reshuffling based on real-time disruptions (e.g., road closures, traffic, accidents), and continuous manifest updates with more accurate travel durations. This service is activated for all active vehicles under the City of Clovis' on-demand operations.
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5 Statement of Work
Provisioning of Administrator User Accounts
Company will supply administrative user accounts with proper privileges to administrators of the Spare Platform system, as may be agreed between Company and Customer. Users and customers of Spare Platform are bound by Spare Platform terms, as outlined at https://spare.com/terms-of-use, and Spare Open API terms, as outlined at https://developers.sparelabs.com/docs/public/terms-of-use.

Customer Training (On-site or via Webinar)
Company will supply administrator training through a two-hour training course via webinar. Training can be set at a time convenient for Customer, as may be agreed between Company and Customer.

Supply Service Documentation
Company will supply documentation on the Spare Platform, including the web-based administration panel, the Spare Open API, and the Spare Driver app, as may be agreed between Company and Customer.

Service Provisioning
Company will deploy the Spare Platform with the Spare Pooled OnDemand (Spare Driver app, Spare Open API, and Spare Platform administration panel), and Spare Smart Matching and Dispatching Algorithm (Spare Engine) on an independent, secure, and scalable datacenter and web server system with disaster recovery capability, as may be agreed between Company and Customer.

Compensation and Rates:

Miscellaneous Fees/Services: Fee
Additional Service Capacity $2000 per vehicle per year
Additional Voice Package $360 per vehicle per year
Services: Year 1 Year 2
Spare One Feature $17,354.17 $29,750
One-Time Implementation Fee 0
Spare Google Live Traffic Integration
$.25 per trip / 100% discount 0 0
Annual Total $17,354.17 $29,750
These rates/fees represent the total cost for all Services provided under this Amendment to the original contract, including labor, equipment, materials, costs and expenses, taxes, and overhead to be paid for Services satisfactorily performed.

Total compensation, including expense reimbursement, for the term of the Agreement, including the extended term by this Second Amendment, shall not exceed:

SECOND AMENDMENT TO ORIGINAL CONTRACT TOTAL: $425,000.00 182
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6 EXHIBIT B
CONTRACTOR’S PROPOSAL
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SPARE ORDER FORM #SL7362
Prepared By: Ryan Powel
Expires on October 31st, 2025
Customer Information
Customer Name City of Clovis
Customer Legal Name N/A
Primary Contact Name Nick Chin
Title Transit Manager
Phone Number 5593242770
Email [email protected]
Accounts Payable Information
Billing Address City of Clovis
1033 Fifth Street
Clovis, California 93612
United States
AP Contact Name Nick Chin
Title Transit Manager
Phone Number 5593242770
Email [email protected]
Order Summary
Order Number #SL7362
Initial Contract Term November 1st, 2025 - June 30th, 2027 Billing Frequency Annually
Billing Method Email
Payment Terms Net 30
Currency USD
Client User Where Applicable