Crescent City City Council
May 4, 2026

EXHIBIT A
Prohousing Incentive Program (PIP)
NOFA Date: 01/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024

AUTHORITY, PURPOSE AND SCOPE OF WORK

1. Authority
Pursuant to Health and Safety Code section 50470, subdivision (b)(2)(C)(i), the State of California Department of Housing and Community Development (the “Department” or “State”) has established the Prohousing Incentive Program (“PIP” or the “Program” as defined in Attachment C of the Guidelines) for Local Governments and Localities. This Standard Agreement, along with all its exhibits (the “Agreement”), is entered into under the authority of, and in furtherance of, the purpose of the Program. Pursuant to Health and Safety Code Section 50470, subdivision (d) (“PIP Statute”), the Department has issued the Prohousing Incentive Program Guidelines and Notice of Funding Availability (“NOFA”) dated January 23, 2024, to govern administration of the fund and carry out the Program.

2. Purpose
In accordance with the authority cited above, the Grantee has been awarded financial assistance in the form of a grant from the Program. The Department has agreed to make the grant to provide financial assistance to accelerate housing production for housing related projects and programs that assist in addressing the unmet housing needs of their local communities pursuant to the terms of the PIP Statute, Guidelines and NOFA, and Permanent Local Housing Allocation (PLHA) Statute and Guidelines, and this Agreement. By entering into this Agreement and thereby accepting the award of the Program funds, the Grantee agrees to comply with the terms and conditions of the PIP Statute, Guidelines and NOFA, and PLHA Statute and Guidelines, and this Agreement, the representations contained in the application, and the requirements of the authority cited above. Based on the representations made by the Grantee, the State shall provide a grant in the amount shown in Exhibit B, Section 2, Grant and Reimbursement Limit.

3. Definitions
Terms not otherwise defined herein shall have the same meaning as definitions set forth in Health and Safety Code Section 50470 and Attachment C of the PIP Guidelines and Definition Section (Section 101) of the PLHA Guidelines.

4. Scope of Work
City of Crescent City
23-PIP-18478

EXHIBIT A
Prohousing Incentive Program (PIP)
NOFA Date: 01/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024
The “Scope of Work” or “Work” for this Agreement shall be used to accelerate housing production for housing related projects and programs that assist in addressing the unmet housing needs of their local communities. Uses shall consist of one or more of the eligible uses described in Guidelines set forth in the PIP Application, Exhibit E of this Agreement and any other supplemental forms prescribed by the Department in full accordance with this Agreement, PIP Guidelines and PLHA Guidelines Section 301.

Where eligible uses in PIP Guidelines Section 601 differ from PLHA Guidelines Section 301, the Department will defer to PLHA Guidelines except for eligible uses 7 (accessibility modifications) and 10 (fiscal incentives).

A Local government that receives an allocation shall use no more than five percent of the allocation for costs related to the administration of the Activity(ies) for which the allocation was made. Staff and overhead costs directly related to carrying out the eligible activities described in the PIP and PLHA Statute and Guidelines are “activity costs” and not subject to the cap on “administrative costs.” A Local government may share any funds available for administrative costs with entities that are administering its allocation.

The Scope of Work may in no event be revised or altered without the Department’s prior written consent and approval, and such consent and approval is within the Department’s sole and absolute discretion. The Department reserves the right, but assumes no obligation, to review and approve any and all Work.

5. Department Contract Coordinator
The Department’s Contract Coordinator of this Agreement is the Housing Policy Development Senior Program Manager, or the Manager’s designee. Unless otherwise informed, any notice, report, or other communication required by this Agreement shall be sent by email to the Department Contract Coordinator at [email protected]. 6. Grantee Contract Coordinator The Grantee’s Contract Coordinator for this Agreement is the Authorized Representative listed below.

Authorized Representative
Name:

Eric Wier
Authorized Representative
Title:

City Manager
Agency Name: City of Crescent City
City of Crescent City
23-PIP-18478

EXHIBIT A
Prohousing Incentive Program (PIP)
NOFA Date: 01/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024
Address: 377 J Street
Crescent City, CA 95531
Phone Number: (707) 464-7483
Email Address: [email protected]
City of Crescent City
23-PIP-18478

EXHIBIT B
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024

BUDGET DETAIL AND PAYMENT PROVISIONS

1. Application for Funds
A. Grantee has submitted to the Department an Application for a Grant under the Program. The Department is entering into this Agreement on the basis of, and in reliance on fact, information, assertions and representations contained in the Application and any subsequent modifications or additions thereto approved by the Department. The Application and any approved modifications and additions thereto are hereby incorporated into this Agreement.

B. The Grantee warrants that all information, facts, assertions, and representations contained in the Application and approved modifications and additions thereto are true, correct, and complete to the best of the Grantee’s knowledge. In the event that any part of the Application and any approved modification and addition thereto is untrue, incorrect, incomplete, or misleading, in such a manner that would substantially affect the Department's approval, disbursement, reimbursement, or monitoring of the funding and the grant or activities governed by this Agreement, the Department may declare a breach hereof and take such action or pursue such remedies as are provided for breach hereof.

2. Grant and Reimbursement Limit
The Department’s decision to approve or deny an application or request for funding pursuant to the Program, and its determination of the amount of funding provided, shall be final. The maximum total amount granted and disbursable to the Grantee pursuant to this Agreement shall not exceed $650,000.

3. Grant Timelines
A. This Agreement is effective upon approval by all parties and the Department, which is evidenced by the date signed by the Department on page one, Standard Agreement, STD 213 (the “Effective Date”).

B. The grant term begins on the day the Department and the grantee have fully executed the Standard Agreement as described in Exhibit D(1).

C. All reimbursement requests for Grant funds must be submitted to the Department no later than March 30, 2026.

D. Upon completion of all deliverables within the Standard Agreement and prior to processing final invoicing, the awardee shall submit a Close Out Report.

City of Crescent City
23-PIP-18478

EXHIBIT B
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024
E. The Grantee shall deliver to the Department all supporting documents of Work performed on or before March 30, 2026, to ensure meeting the June 30, 2026, expenditure deadline. Under special circumstances, as determined by the Department, the Department may modify the March 30, 2026, reimbursement deadline but may not go beyond the expenditure deadline.

F. It is the responsibility of the Grantee to monitor the project and timeliness of requests for reimbursement before the expenditure deadline.

G. The grant term ends on June 30, 2027.

4. Conditions of Reimbursement
A. The Department shall not award or disburse funds unless it determines that the grant funds shall be expended in compliance with the terms and provisions of the Guidelines, the NOFA, and this Agreement.

B. Grant funds shall only be used by the Grantee for project activities approved by the State that involve the preparation and adoption of project activities as stated in the Scope of Work.

C. A Grantee that receives funds under this Program may use a subcontractor. The subcontractor shall provide for compliance with all the requirements of the Program. The subcontract shall not relieve the Grantee of its responsibilities under the Program.

D. After the contract has been executed by the Department and all parties, approved and eligible costs for eligible activities may be reimbursed for the project(s) upon completion of deliverables as set forth in the PIP Application, Exhibit E of this Agreement, and any other supplemental forms prescribed by the Department and subject to the terms and conditions of this Agreement.

Applicants may request disbursements in advance of activity initiation under unique and/or unusual circumstances including but not limited to feasibility, lack of resources, or unavailability of funds.

E. Only approved and eligible costs incurred for work after the NOFA date, continued past the date of execution and acceptance of the Standard Agreement and completed during the grant term until the expenditure deadline will be reimbursable.

F. Approved and eligible costs incurred prior to the NOFA date are ineligible, unless otherwise approved by the Department.

City of Crescent City
23-PIP-18478

EXHIBIT B
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024
G. The Contractor may request that eligible uses or grant funds may be revised without an amendment to this Agreement. This request must be made in writing to HCD and shall be effective only upon written HCD approval. HCD’s decision to approve or deny any such request shall be final.

5. Performance
The Grantee shall take such actions, pay such expenses, and do all things necessary to complete the scope of work and within the terms and conditions

6. Fiscal Administration
A. The Grantee is responsible for maintaining records which fully disclose the activities funded by the PIP grant. Adequate documentation for each reimbursable transaction shall be maintained to permit the determination, through an audit if requested by the State, of the accuracy of the records and the allowability of expenditures charged to Prohousing Incentive Program grant funds. If the allowability of expenditure cannot be determined because records or documentation are inadequate, the expenditure may be disallowed, and the State shall determine the reimbursement method for the amount disallowed. The State’s determination of the allowability of any expense shall be final.

B. Prior to receiving grants, the Grantee shall submit the following documentation:
1) Government Agency Taxpayer ID Form (GovTIN; Fi$cal form). 2) A Request for Funds on a form and manner provided by the Department; and
3) Any and all additional documentation that may be requested by the Department in the prescribed form and manner.

C. Grant fund payment will be made on a reimbursement basis. Project invoices will be submitted to the Department by the grantee on a quarterly basis or, if earlier, upon completion of deliverables.

D. The Department recognizes that budgeted deliverable amounts are based upon estimates. Grantees may request, in writing, a budget adjustment across deliverables subject to written approval by the Department, as long as the total budget does not exceed the maximum amount awarded to the Grantee.

E. Work must be completed prior to requesting reimbursement, unless otherwise approved by the Department.

City of Crescent City
23-PIP-18478

EXHIBIT B
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024
F. Grant funds cannot be reimbursed until this Standard Agreement has been fully executed.

G. The Grantee will be responsible for compiling all invoices and supporting documentation and reporting documents. Invoices must be accompanied by reporting materials where appropriate. Invoices without the appropriate reporting materials will not be paid. Failure to provide requested documentation to HCD could result in exclusion from consideration for grants in future program years.

H. Supporting documentation may include but is not limited to purchase orders, receipts, progress payments, subcontractor invoices, timecards, or any other documentation as deemed necessary by the Department to support the reimbursement to the Grantee for expenses in accordance with the Grantee’s PIP Application and the PIP Guidelines.

I. The Grantee will submit documentation to the Department detailing actual costs incurred, which must be based on clear and completed objectives and deliverables as outlined in the PIP Application, Exhibit E of this Agreement, and any other supplemental forms prescribed by the Department J. In unique and/or unusual circumstances, the Department may consider alternative arrangements (e.g., disbursements in advance of activity initiation) to reimbursement and payment methods. Unusual circumstances include but are not limited to feasibility, unavailable funds or lack of resources and substantial progress in expenditure.

K. The Department may withhold Grant funds until the grant terms have been fulfilled.

L. The Department may withhold eligible Program Grants in future program years until terms of this Agreement have been fulfilled to the satisfaction of the Department.

7. Budget Contingency Clause
A. The Department’s provision of funding to Grantee pursuant to this Agreement is contingent on the continued availability of PIP funds and continued state authorization for PIP activities. The Department’s provision of funding is subject to amendment or termination due to lack of funds or proper authorization. This Agreement is subject to written modification or termination, as necessary, by the Department in accordance with requirements contained in any future state legislation and/or regulations. If funding for any fiscal year is reduced or deleted City of Crescent City
23-PIP-18478

EXHIBIT B
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024
for purposes of this program, the Department shall have the sole discretion to cancel this Agreement without cause, no liability occurring to the Department, or amend the current Agreement and amount allocated to Grantee.

City of Crescent City
23-PIP-18478

EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024

PIP TERMS AND CONDITIONS

1. Effective Date, Commencement of Work
This Agreement is effective upon the date of the Department representative’s signature on page one of the full executed Standard Agreement, STD 213. Grantee agrees that work under this Agreement shall not commence until execution of the STD 213, (the “Effective Date”).

2. Strict Compliance
Grantee will strictly comply with the terms, conditions and requirements of the PIP Statute, Guidelines and NOFA, and PLHA Statute and Guidelines, and this Agreement.

3. Contractor’s Application for Funds
A. Grantee has submitted to the Department an Application for a Grant under the Program.

B. Grantee warrants that all information, facts, assertions and representations contained in the Application and approved modifications and additions thereto are true, correct, and complete to the best of Grantee’s knowledge.

4. Eligible Activities
A. Grant funds awarded to the Grantee and expended by either the Grantee or any entity to which Grantee awards funds shall be used for the eligible activities set forth in Exhibit A(4). The following additional requirements shall apply:

B. Each Grantee shall submit a Plan contained in Exhibit E detailing:
1) The manner in which allocated funds will be used for eligible activities. 2) A description of how the Plan is consistent with the programs set forth in the Local government’s Housing Element.
3) The following for each proposed Activity:
a) A description of each proposed Activity and the percentage of funding allocated to it.
b) A description of major steps/actions and a proposed schedule required for the implementation and completion of the Activity.

City of Crescent City
23-PIP-18478

EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024
c) Where applicable, the period of affordability and level of affordability for each Activity. Rental Projects are required to have affordability periods of at least fifty-five years.

C. If funds are used for the acquisition, construction, or rehabilitation of for-sale housing projects or units within for-sale housing projects, the grantee shall record a deed restriction against the property that will ensure compliance with one of the following requirements if the property is no longer the primary residence of the homeowner due to sale, transfer or lease, unless it is in conflict with the requirements of another public funding source or law:
1) PIP loan and any interest thereon shall be reused consistent with the Eligible Activities specified in Exhibit A(4); or,
2) The initial owner and any subsequent owner shall sell the home at an Affordable housing cost to a qualified Lower-Income or ModerateIncome household; or, 3) The homeowner and the Local government shall share the equity in the unit pursuant to an equity-sharing agreement. The grantee shall reuse the proceeds of the equity-sharing agreement consistent with the Eligible Activities specified in Exhibit A(4).

D. If funds are used for the development of an affordable rental housing project, and the Local government makes the PIP assistance in the form of a loan to the Sponsor of the project, the loan shall be evidenced through a Promissory Note secured by a Deed of Trust.

E. If funds are used as a loan, Grantees are required to implement a program income reuse plan describing how repaid loans and any interest thereon shall be reused for Eligible Activities specified in Exhibit A(4).

5. Scope of Work Revisions and Terms/Amendments
A. Adjustments to the terms within this Agreement must be completed as a contract amendment. Contract amendments must be approved by the Department prior to implementation. If approved, contract amendments shall automatically be deemed a part of, and incorporated into, this Agreement. Approval shall be provided in writing, as appropriate. Contract amendments shall include but not be limited to:
1) Changes in the total grant amount;
City of Crescent City
23-PIP-18478

EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024
2) Changes in Payee(s);
3) Changes in the expiration date of this Agreement;
4) Changes to the grant term date;
5) Changes to the Reimbursement Deadline.

B. Revisions to the Scope of Work that may not require a contract amendment will be subject to the review and approval of the Housing Policy Development Senior Program Manager, or Manager’s Designee. Such revisions must be approved by the Department prior to implementation. Approval shall be provided in writing, as appropriate. Adjustments to the Scope of Work (Exhibit E) shall include but not be limited to:
1) An increase or reduction of activity scope;
2) Changes to or reallocations among activities that do not change the total award amount;
3) Changes in affordability and level of affordability for each activity; 4) Changes to activity start and/or completion dates.

6. Core Practices
A Grantee or Subrecipient must provide eligible activities in a manner consistent with the housing first practices described in California Code of Regulations, title 25, section 8409(b)(1)-(6). A Grantee or Subrecipient allocated funds for eligible activities that provide permanent housing shall incorporate the core components of Housing First as provided in Section 8255(b) of the Welfare and Institutions Code.

7. Monitoring Grant Activities
A. Grantee shall monitor the activities selected and awarded by them to ensure compliance with PIP requirements. An onsite monitoring visit of Subrecipients and any other service providers may occur whenever determined necessary by the Grantee, but at least once during the Grant period.

B. The Department will monitor the performance of the Grantee based on a risk assessment and according to the terms of this Agreement. The Department may City of Crescent City
23-PIP-18478

EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024
also monitor any Subrecipients of the Grantee as the Department deems appropriate based on a risk assessment.

C. As requested by the Department, the Grantee shall submit to the Department all PIP monitoring documentation necessary to ensure that Grantee and its Subrecipients are in continued compliance with PIP requirements. Such documentation requirements and the submission deadline shall be provided by the Department at the time such information is requested from the Grantee.

8. Reporting/Audits
A. During the term of the Standard Agreement, the Department may request a performance report that demonstrates satisfaction of all requirements identified in the Standard Agreement and other Program requirements with emphasis on eligible activities, eligible uses, ineligible uses, and expenditures, according to timelines and budgets referenced herein.

B. Grantees shall submit a report, in the form and manner prescribed by the Department, by April 1 of the year following the receipt of funds, and annually thereafter until funds are expended. The annual report shall contain a detailed report which must include, at a minimum:
1) Identification of the Eligible Activities to which the Grantee committed program funds, and the income levels of households assisted; 2) Amounts awarded to Subrecipients with the activity(ies) identified; 3) Identification of the Eligible Activities upon which the Contractor expended program funds, and the income levels of households assisted and the affordability level for any units assisted; and 4) Close out report for contracts that were fully expended and in which all activities funded were completed during the fiscal year.

C. The Department may request additional information, as needed.

D. At any time during the term of the Standard Agreement, the Department reserves the right to perform or cause to be performed a financial audit. At the Department’s request, the Contractor shall provide, at its own expense, a financial audit prepared by a certified public accountant. The State of California has the right to review project documents and conduct audits during and over the project life.

City of Crescent City
23-PIP-18478

EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024
E. If a financial audit is required by the Department, the audit shall be performed by an independent certified public accountant. Selection of an independent audit firm shall be consistent with procurement standards contained in 24 CFR 85.36. 1) The Contractor shall notify the Department of the auditor's name and address immediately after the selection has been made. The contract for the audit shall allow access by the Department to the independent auditor's working papers.
2) The Contractor is responsible for the completion of audits and all costs of preparing audits.
3) If there are audit findings, the Contractor must submit a detailed response acceptable to the Department for each audit finding within ninety (90) days from the date of the audit finding report.

9. Retention and Inspection Records
A. The Contractor is responsible for maintaining records, which fully disclose the activities funded by the Grant. Adequate documentation of each transaction shall be maintained to permit the determination, through an audit if requested by the State, of the accuracy of the records and the allowability of expenditures charged to Grant funds.

B. The Grantee, its staff, contractors and subcontractors shall establish and maintain an accounting system and reports that properly accumulate incurred project costs by line. The accounting system shall conform to Generally Accepted Accounting Principles (GAAP), enable the determination of incurred costs at interim points of completion, and provide support for payment vouchers and invoices.

C. The Eligible Applicant shall maintain documentation of its normal procurement policy and competitive bid process (including the use of sole source purchasing), and financial records of expenditures incurred during the project in accordance with GAAP.

D. The Eligible Applicant must establish a separate ledger account for receipts and expenditures of grant funds and maintain expenditure details in accordance with the scope of work, project timeline and budget. Separate bank accounts are not required.

E. The Contractor agrees that the Department or its designee shall have the right to review, obtain, and copy all records and supporting documentation pertaining to City of Crescent City
23-PIP-18478

EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024
performance of this Agreement. The Contractor agrees to provide the Department or its designee, with any relevant information requested. 1) The Contractor agrees to permit the Department or its designee access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees who might reasonably have information related to such records and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with the PLHA Statutes, the NOFA, and this Agreement.

F. The Contractor further agrees to retain all records for a period of five years after the end of the term of this Agreement:
1) If any litigation, claim, negotiation, audit, monitoring, inspection or other action has been started before the expiration of the required record retention period, all records must be retained until completion of the action and resolution of all issues, which arise from it. 2) The Contractor also agrees to include in any contract that it enters in an amount exceeding $10,000, the Department’s right to audit the contractor’s records and interview their employees. The Contractor shall comply with the caveats and be aware of the penalties for violation of fraud and for obstruction of investigation as set forth in California Public Code Section 10115.10.

G. The determination by the Department of the eligibility of any expenditure shall be final. If the eligibility of any expenditure cannot be determined because records or documentation are inadequate, the expenditure may be disallowed, and the Department shall determine the reimbursement method for the amount disallowed.

H. The Contractor shall retain all books and records relevant to this Agreement for a minimum of five years after the end of the term of this Agreement. Records relating to any and all audits or litigation relevant to this Agreement shall be retained for five years after the conclusion or resolution of the matter.

I. Subcontractors employed by the Grantee and paid with moneys under the terms of this Standard Agreement shall be responsible for maintaining accounting records as specified above. The Grantee shall monitor and enforce subcontracts accordingly.

City of Crescent City
23-PIP-18478

EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024

10. Breach and Remedies of Non-Performance
A. The Department may monitor expenditures and activities of an applicant, as the Department deems necessary, to ensure compliance with Program requirements.

B. Any dispute concerning a question of fact arising under this Standard Agreement that is not disposed of by agreement shall be decided by the Department’s Housing Policy Development Manager, or the Manager’s designee, who may consider any written or verbal evidence submitted by the Grantee. The decision of the Department’s Housing Policy Development Manager or Designee shall be the Department’s final decision regarding the dispute.

C. Neither the pendency of a dispute nor its consideration by the Department will excuse the Grantee from full and timely performance in accordance with the terms of this Standard Agreement.

D. In the event that it is determined, at the sole discretion of the Department, that the Grantee is not meeting the terms and conditions of the Standard Agreement, immediately upon receiving a written notice from the Department to stop work, the Grantee shall cease all work under the Standard Agreement. The Department has the sole discretion to determine that the Grantee meets the terms and conditions after a stop work order, and to deliver a written notice to the Grantee to resume work under the Standard Agreement.

E. Both the Grantee and the Department have the right to terminate the Standard Agreement at any time upon 30 days written notice. The notice shall specify the reason for early termination and may permit the Grantee or the Department to rectify any deficiency(ies) prior to the termination date. The Grantee will submit any requested documents to the Department within 30 days of the early termination notice.

F. At any time, if the Department finds the applicant falsely proposed information in the application or as part of the application review, including documentation related to incentive payments (e.g., affordability, enhancements), the Department may require the repayment of funds or decline reimbursement.

G. The Department may, as it deems appropriate or necessary, require the repayment of funds from a grantee, or pursue any other remedies available to it by law for failure to comply with Program requirements (Health and Safety Code section 50515.04(e).

H. The following shall constitute a breach of this Agreement:

City of Crescent City
23-PIP-18478

EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024
1) Grantee’s failure to comply with any of the terms and conditions of this Agreement.
2) Use of, or permitting the use of, grant funds provided under this Agreement for any ineligible costs or for any activity not approved under this Agreement.
3) Any failure to comply with the deadlines set forth in this Agreement unless approved by the Program Manager.

I. In addition to any other remedies that may be available to the Department in law or equity for breach of this Agreement, the Department may at its discretion, exercise the following remedies:
1) Disqualify the Grantee from applying for future Program Funds or other Department administered grant programs;
2) Revoke existing PIP award(s) to the Grantee;
3) Decline reimbursement of funds;
4) Require the return of unexpended Program funds disbursed under this Agreement;
5) Require repayment of Program funds disbursed and expended under this Agreement;
6) Require the immediate return to the Department of all funds derived from the use of Program funds including, but not limited to recaptured funds and returned funds;
7) Seek, in a court of competent jurisdiction, an order for specific performance of the obligation defaulted upon, or the appointment of a receiver to complete the obligations in accordance with the PIP requirements; and
8) Other remedies available at law, or by and through this Agreement.

J. All remedies available to the Department are cumulative and not exclusive.

K. The Department may give written notice to the Grantee to cure the breach or violation within a period of not less than fifteen (15) days.

City of Crescent City
23-PIP-18478

EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024

11. Termination
A. The Department may terminate this Agreement at any time for cause by giving a minimum of thirty days’ notice of termination, in writing, to the Grantee. Cause shall consist of, violations of any terms and/or special conditions of this Agreement, the PIP Statutes, Guidelines or NOFA. Upon termination of this Agreement, unless otherwise approved in writing by the Department, any unexpended funds received by the Grantee shall be returned to the Department within thirty days of the notice of termination.

B. This Agreement is subject to any additional restrictions, limitations or conditions, or statute, regulations or any other laws, whether federal or those of the State of California, or of any agency, department, or any political subdivision of the federal or the State of California governments, which may affect the provisions, terms or funding of this Agreement in any manner.

C. The Department has the option to terminate this Agreement under the thirty-day cancellation clause or to amend this Agreement to reflect any reduction of funds.

12. Waivers
No waiver of any breach of this Agreement shall be held to be a waiver of any prior or subsequent breach. The failure of the Department to enforce at any time the provisions of this Agreement, or to require at any time, performance by the Grantee of these provisions, shall in no way be construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of the Department to enforce these provisions.

13. Relocation
Grantee shall comply with all requirements of applicable California relocation law (Gov.

Code, § 7260 et seq. and the regulations promulgated thereunder at Cal. Code Regulations, Title. 25, § 6000 et seq.). Any relocation plan for the Development shall be subject to the review and approval by the State.

14. Relationship of Parties
It is expressly understood that this Standard Agreement is an agreement executed by and between two independent governmental entities and is not intended to, and shall not be construed to, create the relationship of agent, servant, employee, partnership, joint venture or association, or any other relationship whatsoever other than that of an independent party.

City of Crescent City
23-PIP-18478

EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024

15. Third-Party Contracts
A. All state-government funded procurements must be conducted using a fair and competitive procurement process. The Grantee may use its own procurement procedures as long as the procedures comply with all City/County laws, rules and ordinances governing procurement, and all applicable provisions of California state law.

B. Any contract entered into as a result of this Agreement shall contain all the provisions stipulated in the Agreement to be applicable to the Grantee’s subrecipients, contractors, and subcontractors. Copies of all agreements with subrecipients, contracts, and subcontractors must be submitted to the Department’s program manager upon request.

C. The Department does not have a contractual relationship with the Grantee’s subrecipients, contractors, or subcontractors, and the Grantee shall be fully responsible for all work performed by its sub-recipients, contractors, or subcontractors.

D. In the event the Grantee is partnering with another jurisdiction or forming a collaborative effort between the Grantee and other jurisdictions who are grantees of the PIP, the Grantee acknowledges that each partner and/or all entities forming the SB 2 PIP collaborative are in mutual written agreement with each other but are contractually bound to the Department under separate, enforceable contracts.

E. In the event the Grantee is partnering with another jurisdiction or forming a collaborative effort with other entities that are not grantees of the Prohousing Incentive Program, the Department shall defer to the provisions as noted in subsections 8(B) and 8(C) of this Section.

F. The Grantee agrees to comply with all conditions of this Agreement including the Special Conditions set forth in Exhibit E. These conditions shall be met to the satisfaction of the Department prior to disbursement of funds. The Grantee shall ensure that all Subrecipients are made aware of and agree to comply with all conditions of this Agreement and the applicable State requirements governing the use of Grant funds. The Grantee shall ensure that all Subrecipients are qualified to do business and in good standing with the California Secretary of State and the California Franchise Tax Board. Failure to comply with these conditions may result in cancellation of this Agreement.

City of Crescent City
23-PIP-18478

EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024

16. Compliance with State and Federal Laws, Rules, Guidelines and Regulations A. The Grantee agrees to comply with all state and federal laws, rules and regulations that pertain to construction, health and safety, labor, fair employment practices, equal opportunity, and all other matters applicable to the grant, the Grantee, its contractors or subcontractors, and any other grant activity.

B. During the performance of this Agreement, the Grantee assures that no otherwise qualified person shall be excluded from participation or employment, denied program benefits, or be subjected to discrimination based on race, color, ancestry, national origin, sex, gender, gender identity, gender expression, genetic information, age, disability, handicap, familial status, religion, or belief, under any program or activity funded by this contract, as required by Title VI of the Civil Rights Act of 1964, the Fair Housing Act (42 USC 3601-20) and all implementing regulations, and the Age Discrimination Act of 1975 and all implementing regulations.

C. The Grantee shall include the nondiscrimination and compliance provisions of this clause in all agreements with its sub-recipients, contractors, and subcontractors, and shall include a requirement in all agreements with all of same that each of them in turn include the nondiscrimination and compliance provisions of this clause in all contracts and subcontracts they enter into to perform work under the Prohousing Incentive Program.

D. The Grantee shall, in the course of performing project work, fully comply with the applicable provisions of the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.) E. The Grantee shall adopt and implement affirmative processes and procedures that provide information, outreach and promotion of opportunities in the Prohousing Incentive Program project to encourage participation of all persons regardless of race, color, national origin, sex, religion, familial status, or disability.

This includes, but is not limited to, a minority outreach program to ensure the inclusion, to the maximum extent possible, of minorities and women, and entities owned by minorities and women, as required by 24 CFR 92.351.

17. Litigation
City of Crescent City
23-PIP-18478

EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024
A. If any provision of this Agreement, or an underlying obligation, is held invalid by a court of competent jurisdiction, such invalidity, at the sole discretion of the Department, shall not affect any other provisions of this Agreement and the remainder of this Agreement shall remain in full force and effect. Therefore, the provisions of this Agreement are, and shall be, deemed severable.

B. The Grantee shall notify the Department immediately of any claim or action undertaken by or against it, which affects or may affect this Agreement or the Department, and the Grantee shall take such action with respect to the claim or action as is consistent with the terms of this Agreement and the interests of the Department.

18. Special Conditions
The State reserves the right to add any special conditions to this Agreement it deems necessary to assure that the policy and goals of the Program are achieved.

City of Crescent City
23-PIP-18478

EXHIBIT E
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024

PROGRAM-SPECIFIC PROVISIONS AND SPECIAL CONDITIONS

1. Program-specific Provisions
The following are project-specific terms and conditions and shall inform the references made to project-specific information not contained in the Standard Agreement.

2. Budget Detail:

Grantee has been awarded the following grant activity amounts: $650,000 Estimated allocation may not exceed: $650,000
Payees: City of Crescent City
The authorized Payee(s) is/are specified below:

Name: City of Crescent City Amount:$650,000

3. Consistency with Housing Element Programs:

Provide a description of how the Plan is consistent with the programs set forth in the Local government’s Housing Element.

The City’s plan to use Prohousing Incentive Program funds to increase the amount of affordable housing and assist potential applicants with the new construction of affordable housing is found in more than 10 of the 21 key programs in the City’s 6th Cycle Certified Housing Element. In particular, Implementation Program P-4 requires the City to promote the rehabilitation of existing housing stock, and Implementation Programs P-1, P-3, P-7, P-10 and P-17 list steps the City will be taking to encourage the use of private-initiated and/or publiclyfunded programs to provide housing for low- and moderate-income families, and to facilitate the housing production and affordability goals set forth in the RHNA requirements of the 6th Cycle Housing Element Cycle (2022-2030). The City will offer PIP funds to assist developers in building units that will meet the local RHNA goals. The City of Crescent City operates numerous programs aimed at maintaining and expanding affordable housing opportunities in the community. The City’s Housing Authority was established in 1965 with a goal to provide decent, safe, and sanitary housing in Crescent City and surrounding areas of the County.

City of Crescent City
23-PIP-18478

EXHIBIT E
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024
Project Timeline, Budget, and Statement of Work (Plan):

PROJECT TIMELINE AND BUDGET AND STATEMENT OF WORK
Objective
Responsible
Party Est. Cost Begin End Deliverable Notes
OBJECTIVE: The
predevelopment,
development,
acquisition,
rehab and
preservation of
multifamily,
residential livework, rental
housing that is
affordable to
extremely low-,
very low-, low-,
or moderateincome
households,
including
necessary
operating
subsidies.

City of
Crescent City
$650,000 11/18/24 02/28/26 The
predevelopment
of at least four
affordable
housing units.

SUBTASK:

Execute grant
agreement with
State and ensure
that all
obligations are
being met
throughout the
duration of the
project. Meet with
staff and attend
any necessary
webinars to learn
the required
reporting process.

City $21,500 7/8/24 6/30/26 Fully executed
standard
agreement and
all required
reporting
materials.

SUBTASK:

Release RFP
City $1,000 10/2/24 10/31/24 Proof of
publication
SUBTASK:

Evaluate
proposals,
interview
developers if
necessary
City $3,000 11/4/24 11/6/24 Proposals,
scoring sheets
City of Crescent City
23-PIP-18478

EXHIBIT E
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024
SUBTASK: Draft
contract and
award developer
City $2,000 11/7/24 11/18/24 Fully executed
contract
SUBTASK:
predevelopment
activities.

Developer $620,000 11/18/24 2/28/26 The
predevelopment
of least four
affordable
housing unit.

SUBTASK:

Complete Funds
Request #2
City $500 4/15/25 4/30/25 Funds Request
SUBTASK:

Complete Funds
Request #3
City $500 9/15/25 9/30/25 Funds Request
SUBTASK:

Complete Funds
Request #4
City $500 10/15/25 10/31/25 Funds Request
SUBTASK:

Complete Funds
Request #5
City $500 1/15/26 1/30/26 Funds Request
SUBTASK:

Complete Funds
Request #6
City $500 3/15/26 3/31/26 Funds Request
Total
Estimated
Cost: 650,000
City of Crescent City
23-PIP-18478

EXHIBIT E
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 10/15/2024

4. Special Terms and Conditions
The following Special Conditions are applicable to this Standard Agreement:

None.

Exhibit B-2: Prohousing Incentive Program Guidelines
[see attached]
Prohousing Incentive Program
Guidelines
State of California
Governor Gavin Newsom
Tomiquia Moss, Secretary
Business, Consumer Services and Housing Agency
Gustavo Velasquez, Director
California Department of Housing and Community
Development
Megan Kirkeby, Deputy Director
Division of Housing Policy Development
651 Bannon Street, Suite 400
Sacramento, CA 95811
Website: https://www.hcd.ca.gov/grants-and-funding/programs-active/prohousing-incentive-program Email: [email protected]
August 2024
Contents
Section 100: Introduction .........................................................................................................0 Section 101: Scope and Authority................................................................................................... 0 Section 200: Eligibility..............................................................................................................1 Section 201: Eligible Applicants ...................................................................................................... 1 Section 202: Threshold Requirements........................................................................................... 1 Section 300: Application Requirements.................................................................................. 2 Section 301: Application Content.................................................................................................... 2 Section 302: Application Submittal................................................................................................. 3 Section 400: Application Review .............................................................................................3 Section 401: Application Process.................................................................................................... 3 Section 402: Base Award and Bonus Award Calculation ......................................................... 4 Section 403: Scoring – Tie Breaker................................................................................................. 4 Section 404: Geographic Categories.............................................................................................. 4 Section 500: Eligible Award Calculation ................................................................................. 5 Section 600: Uses of Funds .....................................................................................................6 Section 601: Eligible Uses................................................................................................................. 6 Section 700: Administration.....................................................................................................7 Section 701: Fiscal Administration ................................................................................................. 7 Section 702: Accounting Records, Audits, Remedies of Non-performance, and Reporting................................................................................................................................................ 9 Section 800: Right to Modify or Suspend and Final Decision-making................................13 Attachment A: Enabling Legislation......................................................................................14 Attachment B: Required Resolution Template ....................................................................... 0 Attachment C: Definitions ........................................................................................................0 Prohousing Incentive Program
Section 100: Introduction
The California Department of Housing and Community Development (Department/HCD) is pleased to release program guidelines (Guidelines) for funding through the Prohousing Incentive Program (Program). The Prohousing Incentive Program is designed to encourage cities and counties to obtain Prohousing Designation.

The Program is funded through Chapter 364, Statutes of 2017 (SB 2, Atkins), which established the Building Homes and Jobs Trust Fund (Fund). The Fund utilizes real estate transaction fees collected at a county level to establish a permanent source of funding. Five percent of annual collections are deposited in a fund to be used for an incentive program.

The Program awards funds based on the Eligible Applicant’s Prohousing Designation Program Score (as codified in the California Code of Regulations Title 25 Housing and Community Development, Division 1, Chapter 6, Subchapter 6.6, Sections 6600 through 6608, Consecutive Prohousing Designation Program). This round of program funding provides awards for Eligible Applicants to use towards planning and implementation activities related to housing and community development. The content and structure of future rounds of Program funding is subject to change at the Department’s sole discretion.

Section 101: Scope and Authority
These Guidelines are authorized pursuant to Chapter 2.5 of Health and Safety Code (Sections 50470 to 50475). The Guidelines implement, interpret, and make specific provisions for purposes of implementing an incentive program pursuant to Health and Safety Code section 50470, subdivision (b)(2)(C)(i), (hereinafter “Prohousing Incentive Program” or “PIP”).

The Guidelines provide the Department’s plan for the expenditure of PIP funds and the administration of the Program. As such, these Guidelines establish terms, conditions, forms, procedures, and other mechanisms as the Department deems necessary to exercise the powers and perform the duties conferred by Chapter 2.5.

The matters set forth herein are regulatory mandates, and are adopted in accordance with the authorities set forth below:

Section 50470 (d) of the Health and Safety Code states “In consultation with stakeholders, the department may adopt guidelines to implement this section, including to determine allocation methodologies. Any guideline, rule, policy, or standard of general application employed by the department in implementing this chapter shall not be subject to the requirements of the Administrative Procedures Act.” 1 These guidelines are mandated and have the dignity of statutes. (Ramirez v. Yosemite Water Co., 20 Cal. 4th 785, 800 (1999) [stating "“Quasi-legislative regulations … have the dignity of statutes … [and]… delegation of legislative authority includes the power to elaborate the meaning of key statutory terms…”].

Ramirez v. Yosemite Water Co., 20 Cal. 4th 785, 800 (1999) The Department reserves the right, at its sole discretion, to suspend or amend the provisions of these Guidelines, including, but not limited to, grant award amounts.

Section 200: Eligibility
Section 201: Eligible Applicants
(A) Eligible Applicants are limited to cities, counties, and cities and counties. (B) Only Eligible Applicants may submit an application. (C)Eligible Applicants may partner through legally binding agreements with other forms of governments or entities. This includes, but is not limited to, partnerships with other localities, regional governments, housing authorities, school districts, special districts, community-based organizations, Tribal Entities or any duly constituted governing body of an Indian Reservation or Rancheria. (D)Eligible Applicants in partnerships may determine the amount of incentive payments between Eligible Applicants participating in the partnership in consultation with the Department.
(E) Eligible Applicants forming partnerships must submit separate, completed, and signed application packages, including resolutions and a copy of the signed agreement between partners to the Department in order to be awarded funds.

Section 202: Threshold Requirements
Eligible Applicants must meet all of the following threshold requirements for participation in the Program:
(A) An adopted housing element in substantial compliance, as determined by the Department, pursuant to Housing Element Law (Article 10.6 of Gov. Code) in accordance with Government Code section 65585, subdivision (h).

1. Applicants not meeting housing element requirements may be considered to meet this threshold requirement at the discretion of the Department on 2 a case-by-case basis. Criteria for consideration include but are not limited to significant progress in meeting housing element requirements (e.g., a draft found to meet statute, rezoning near completion), proposing activities to meet housing element requirements (e.g., rezoning to accommodate housing needs pursuant to Gov. Code Section 65583(c)(1)) and adoption of a compliant element prior to the award of funds.
(B) Housing Element Annual Progress Report submittal pursuant to Government Code Section 65400 for the current or prior year, as applicable. (C)Prohousing Designation: A completed Prohousing Designation application (per the regulations codified in the California Code of Regulations Title 25 Housing and Community Development, Division 1, Chapter 6, Subchapter 6.6, Sections 6600 through 6608, Consecutive Prohousing Designation Program), with an authorizing resolution, must be submitted prior to or in conjunction with the applicant’s PIP application. PIP awards cannot be made until a Prohousing Designation is obtained, as determined by the Department. (D)A complete application as determined by the Department. (E) A resolution authorizing submittal of the application to the Program that materially comports with the Program’s requirements and is legally sufficient as determined in the Department’s reasonable discretion, including an authorized representative. See Attachment B for required resolution format. (F) Compliance with state and federal housing laws as determined by the sole discretion of HCD.
(G)Demonstration of meeting threshold criteria shall be determined by the Department in its sole and absolute discretion. No documentation of meeting threshold requirements is required in the application unless requested by the Department.

Section 300: Application Requirements
Section 301: Application Content
(A) Eligible Applicants may request an allocation of funds by submitting a complete application to the Department.
(B) Application must utilize the forms and manner prescribed in the Department’s application.
3 (C)The application can be found on the Department’s website at https://www.hcd.ca.gov/grants-and-funding/programs-active/prohousingincentive-program. (D)Eligible Applicants must submit a Government Agency Taxpayer Identification Form for an application to be considered complete.
(E) The Department may request additional information and documentation as appropriate.
(F) The Department may consult with and gather relevant information from any individual, entity, or public agency.

Section 302: Application Submittal
(A) An applicant must submit a completed, signed original application in electronic form.
(B) The Department encourages early applications and will accept applications up to the date and time noted on the cover letter of the Notice of Funding Availability (NOFA).
(C)All applications must be submitted by email to: [email protected].

Section 400: Application Review
Section 401: Application Process
(A) Applications will be reviewed for completeness, eligibility, and for meeting threshold requirements.
(B) Eligible Applicants will have until the date specified in the NOFA to obtain Prohousing Designation. After the specified date, HCD will rank Eligible Applicants that met threshold requirements according to their Prohousing Designation Score, as determined by the Department.
(C)Ranked applications will be sorted by geographic category, as described in Section 404 of these Guidelines.
(D)Priority will be given to Eligible Applicants that have not received PIP funds in prior funding rounds. Eligible Applicants awarded in prior funding rounds will only be eligible to receive an award once all previously unfunded Eligible Applicants receive an award.
4 Section 402: Base Award and Bonus Award Calculation
(A) Eligible Applicants will receive a base award according to population size (see Section 500). In addition, Eligible Applicants may receive a bonus award up to $500,000.
(B) For the purpose of calculating the bonus award, an Eligible Applicant’s Prohousing Designation Score will be multiplied by 10,000. For example, an Eligible Applicant with a Prohousing Designation Score of 35 points will be eligible to receive up to a $350,000 bonus award in addition to the base award.

The bonus award amount shall not exceed $500,000.

Section 403: Scoring – Tie Breaker
(A) Eligible Applicants that submit complete applications that meet threshold requirements will be awarded in order of rank and priority, as described in Section 401(D), until funding is depleted.
(B) In the event of a tie (i.e., two or more Eligible Applicants have the same Prohousing Designation Score), the Eligible Applicant with the smaller population size will receive funding first.

Section 404: Geographic Categories
(A) Ranked applications will be considered for awards according to six geographic categories, as follows:

1. Southern California: Imperial, Los Angeles, Orange, Riverside, San Bernardino, Ventura, and San Diego

2. Bay Area: Alameda, Contra Costa, Marin, Napa, San Mateo, Santa Clara, Solano, Sonoma, San Francisco

3. San Joaquin Valley: Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, Tulare

4. Sacramento Area: Amador, El Dorado, Placer, Sacramento, Sutter, Yolo, Yuba

5. Central Coast: Monterey, San Benito, San Luis Obispo, Santa Barbara, Santa Cruz

6. North State and Sierra Nevada: Alpine, Butte, Calaveras, Colusa, Del Norte, Glenn, Humboldt, Inyo, Lake, Lassen, Mariposa, Mendocino, Modoc, Mono, Nevada, Plumas, Shasta, Sierra, Siskiyou, Tehama, Trinity, Tuolumne
5 (B) Funds are made available to each geographic category based upon the percentage of 2030 population projections, as determined by the Department of Finance (see the NOFA).
(C)The total proportion of available funds in geographic categories will not exceed 75 percent of the total amount of the NOFA.
(D) Awards will be funded from each geographic category’s total available funding amount until the funds for that category are depleted. If Eligible Applicants’ awards exceed the funding available to a geographic category, Eligible Applicants may qualify to fulfill their eligible award from the 25 percent residual set-aside in ranking order.

1. In the event of funds being depleted such that a partial award is indicated, the residual set-aside may be utilized to enhance the award at the discretion of the Department.
(E) If both an Eligible Applicant’s geographic category and the residual set-aside have been depleted, that Eligible Applicant may be eligible for remaining funds at the sole discretion of the Department. Remaining funds will come from unutilized money from geographic categories only after Eligible Applicants located in those geographic categories have been awarded.
(F) When all funds have been depleted, the final Eligible Applicant in the ranking will only be eligible for the award amount that remains in the coffer. Eligible Applicants in this position may opt to pull their PIP application until additional funds are made available to fulfill their eligible award amount in potential future funding rounds.
(G)The Department reserves discretion to alter funding amounts and the distribution methodology to advance Program goals and achieve an equitable outcome.

Section 500: Eligible Award Calculation
(A) This program will make funding available to jurisdictions as Prohousing Incentive grants as determined by the NOFA.
(B) Maximum total award amounts will be no greater than $2 million per Eligible Applicant. Total potential award amounts are determined by adding an Eligible Applicant’s base award amount with an Eligible Applicant’s bonus award amount, as established by the criteria described in Section 402 of these Guidelines. 6 (C)Base award amounts are based on population estimates as of January 1 of the NOFA year1. See the NOFA for the maximum base award amount that a jurisdiction may receive pursuant to this subdivision2. (D)Eligible Applicants in partnerships with other cities or counties, as allowed by section 201(C) of these Guidelines, may qualify for up to the sum of individual Eligible Applicant base award amounts. For example, two jurisdictions between 50,000 and 99,999 people could submit a proposal for up to $1 million in base awards.

Section 600: Uses of Funds
Section 601: Eligible Uses
Eligible Applicants must use award funds towards planning or implementation activities related to housing and community development limited to activities that conform with eligible uses pursuant to Health and Safety Code section 50470(b)(2)(D):

1. The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-, very low-, low-, and moderate-income households, including necessary operating subsidies.

2. Affordable rental and ownership housing that meets the needs of a growing workforce earning up to 120 percent of area median income, or 150 percent of area median income in high-cost areas.

3. Matching portions of funds placed into local or regional housing trust funds.

4. Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of Section 34176 of the Health and Safety Code.

5. Capitalized reserves for services connected to the creation of new permanent supportive housing, including, but not limited to, developments funded through the Veterans Housing and Homelessness Prevention Bond Act of 2014.
1 Population estimates are based on the Department of Finance E-1 report:
https://dof.ca.gov/Forecasting/Demographics/estimates-e1/. 2 Maximum and minimum award amounts may be adjusted by the Department based on demand for the Program.
7 6. Assisting persons who are experiencing or at risk of homelessness, including providing rapid rehousing, rental assistance, navigation centers, emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.

7. Accessibility modifications.

8. Efforts to acquire and rehabilitate foreclosed or vacant homes.

9. Homeownership opportunities, including, but not limited to, down payment assistance.

10.Fiscal incentives or matching funds to local agencies that approve new housing for extremely low, very low, low-, and moderate-income households.

Section 700: Administration
Section 701: Fiscal Administration
(A) Grant Execution and Term

1. The Department will notify the grantee if they have been selected for a grant award:
i. After the Standard Agreement has been drawn, the grantee will be provided instructions for signing all required
documents. The grantee must submit all supporting materials and a signed Standard Agreement within the timeline provided in the instructions, or risk forfeiting the grant award; ii. The grant term begins on the day the Department and the grantee have fully executed the Standard Agreement. The Department will notify the grantee and partners when work may proceed under the agreement. However, eligible activities that are approved by the Department may be retroactively reimbursed to the date of the NOFA; and
iii. The end of the grant term will be determined by the state based on the availability of grant funds and the administrative requirements for liquidation.
(B) Payment and Accounting of Grant Funds

1. Grant funds cannot be reimbursed until the Standard Agreement has been fully executed.
8 2. The grantee will be responsible for compiling and submitting all invoices and reporting documents. Invoices must be accompanied by reporting materials where appropriate. Invoices without the appropriate reporting materials will not be paid. Failure to provide requested documentation to HCD could result in exclusion from consideration for grants in future program years.

3. The grantee will submit documentation to the Department detailing actual costs incurred, which must be based on clear and completed objectives and deliverables as outlined in the PIP application, Exhibit E of the Standard Agreement, and any other supplemental forms prescribed by the Department.

4. Supporting documentation may include, but is not limited to, receipts, progress payments, subcontractor invoices, timecards or any other documentation as deemed necessary by the Department to support the reimbursement to the grantee for expenses in accordance with the grantee’s PIP application and these PIP Guidelines.

5. The grantee must bill the state based on clear deliverables outlined in the Standard Agreement or budget timeline. Only approved and eligible costs incurred for work after the NOFA date, and completed and processed prior to the expenditure deadline, will be reimbursable. Approved and eligible costs incurred prior to the NOFA date are ineligible.

6. Work must be completed prior to requesting reimbursement, unless otherwise approved by the Department.

7. Grant fund payment will be made on a reimbursement basis. Project invoices will be submitted to the Department by the grantee on a quarterly basis or, if earlier, upon completion of deliverables.

8. In unique and/or unusual circumstances, the Department may consider alternative arrangements (e.g., disbursements in advance of activity initiation) to reimbursement and payment methods.

Unusual circumstances include but are not limited to feasibility, unavailable funds or lack of resources and substantial progress in expenditure.

9. The Department recognizes that budgeted deliverable amounts are based upon estimates. Grantees may request, in writing, a budget adjustment across deliverables subject to written approval by the Department, as long as the total budget does not exceed the maximum amount awarded to the grantee.
9 10.The Department may withhold grant funds until grant terms have been fulfilled.

11. The Department may withhold eligible program grants in future program years until terms of the Standard Agreement have been fulfilled to the satisfaction of the Department.

12.Each recipient of funds under the Program shall expend those funds no later than June 30, 2026. Final invoices shall be submitted to the Department three months prior to the expenditure deadline.

Section 702: Accounting Records, Audits, Remedies of Non-performance, and Reporting
(A) Accounting Records

1. The contractor is responsible for maintaining records which fully disclose the activities funded by the grant. Adequate documentation of each transaction shall be maintained to permit the determination, through an audit if requested by the state, of the accuracy of the records and the allowability of expenditures charged to grant funds. If the allowability of an expenditure cannot be determined because records or documentation are inadequate, the expenditure may be disallowed, and the state shall determine the reimbursement method for the amount disallowed. The state’s determination of the allowability of any expense shall be final.

2. The grantee, its staff, contractors, and subcontractors shall establish and maintain an accounting system and reports that properly accumulate incurred project costs by line. The accounting system shall conform to Generally Accepted Accounting Principles (GAAP), enable the determination of incurred costs at interim points of completion, and provide support for payment vouchers and invoices.

3. The grantee must establish a separate ledger account for receipts and expenditures of grant funds and maintain expenditure details in accordance with the scope of work, project timeline and budget. Separate bank accounts are not required.

4. The grantee shall maintain documentation of its normal procurement policy and competitive bid process (including the use of sole source purchasing), and financial records of expenditures incurred during the project in accordance with GAAP.

5. The grantee agrees that the Department or its designee shall have the right to review, obtain, and copy any records and supporting documentation pertaining to the performance of the Standard Agreement. 10 The grantee agrees to provide the Department or its designee with any relevant information requested.

6. The grantee agrees to permit the Department or the Department’s designee access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees who might reasonably have information related to such records and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with statutes, Program Guidelines, and the Standard Agreement.

7. Subcontractors employed by the grantee and paid with moneys under the terms of the Standard Agreement shall be responsible for maintaining accounting records as specified above. The grantee shall monitor and enforce subcontracts accordingly.
(B) Audits

1. At any time during the term of the Standard Agreement, the Department may perform or cause to be performed a financial audit of all phases of the award. At the Department’s request, the grantee shall provide, at its own expense, a financial audit prepared by a certified public accountant. The State of California has the right to review project documents and conduct audits during and over the project life.

2. The grantee agrees that the Department or the Department’s designee shall have the right to review, obtain, and copy all records and supporting documentation pertaining to performance of the Standard Agreement.

3. If a financial audit is required by the Department, the audit shall be performed by an independent certified public accountant. Selection of an independent audit firm shall be consistent with procurement standards contained in Exhibit D, Section 8 of the Standard Agreement.

4. The grantee shall notify the Department of the auditor’s name and address immediately after the selection has been made. The contract for the audit shall allow access by the Department to the independent auditor’s working papers.

5. The grantee is responsible for the completion of audits and all costs of preparing audits.

6. If there are audit findings, the grantee must submit a detailed response acceptable to the Department for each audit finding within 90 days from the date of the audit finding report.
11 7. The grantee agrees to maintain such records for possible audit after the final payment pursuant to Exhibit D, Sections 8 and 9 of the Standard Agreement, unless a longer period of records retention is stipulated.

8. The grantee shall include in any contract that it enters in an amount exceeding $10,000, the Department’s right to audit the contractor’s records and interview their employees.

9. The grantee shall comply with the caveats and be aware of the penalties for violation of fraud and for obstruction of investigation as set forth in California Public Contracts Code Section 10115.10.

10.The grantee shall retain all books and records relevant to the Standard Agreement for a minimum of five years after the end of the term of the Standard Agreement. Records relating to any and all audits or litigation relevant to the Standard Agreement shall be retained for five years after the conclusion or resolution of the matter.
i. If any litigation, claim, negotiation, audit, monitoring, inspection, or other action has been started before the expiration of the required record retention period, all records must be retained until completion of the action and resolution of all issues which arise from it.
(C)Remedies of Non-performance

1. In the event that it is determined, at the sole discretion of the Department, that the grantee is not meeting the terms and conditions of the Standard Agreement, the grantee shall cease all work under the Standard Agreement immediately upon receiving a written notice from the Department. The Department has the sole discretion to determine that the grantee meets the terms and conditions after a stop work order, and to deliver a written notice to the grantee to resume work under the Standard Agreement.

2. Both the grantee and the Department have the right to terminate the Standard Agreement at any time upon 30 days written notice. The notice shall specify the reason for early termination and may permit the grantee or the Department to rectify any deficiency(ies) prior to the early termination date. The grantee will submit any requested documents to the Department within 30 days of the early termination notice.

3. At any time, if the Department finds the applicant falsely proposed information in the application or as part of the application review, 12 including documentation related to incentive payments (e.g., affordability, enhancements), the Department may require the repayment of funds or decline reimbursement.

4. The Department may, as it deems appropriate or necessary, require the repayment of funds from a grantee, or pursue any other remedies available to it by law for failure to comply with Program requirements (Health and Safety Code section 50515.04(e).
(D)Reporting

1. At any time during the term of the Standard Agreement, the Department may request a performance report that demonstrates satisfaction of all requirements identified in the Standard Agreement with emphasis on eligible activities, eligible uses, ineligible uses, and expenditures, according to timelines and budgets referenced in the Standard Agreement.

2. Grantees shall submit a report, in the form and manner prescribed by the Department, by April 1 of the year following the receipt of funds, and annually thereafter until funds are expended. The annual report shall contain a detailed report which must include, at a minimum:
i. Identification of the eligible activities to which the Grantee committed program funds, and the income levels of households assisted;
ii. Amounts awarded to Subrecipients with the activity(ies) identified; iii. Identification of the eligible activities upon which the contractor expended program funds, and the income levels of households assisted and the affordability level for any units assisted; and iv. Close out report for contracts that were fully expended and in which all activities funded were completed during the fiscal year.

3. The Department may request additional information, as needed.

4. Upon completion of all deliverables within the Standard Agreement and prior to processing final invoicing, the awardee shall submit a closeout report.
13 Section 800: Right to Modify or Suspend and Final Decisionmaking The Department reserves the right, at its sole discretion, to suspend, amend, or modify the provisions of these Guidelines at any time, including, without limitation, the amount of funds available hereunder. If such an action occurs, the Department will notify all interested parties and will post the revisions to the Department’s website. You may subscribe to the Department’s email list here:
http://www.hcd.ca.gov/HCD_SSI/subscribe-form.html.

The Department’s decision to approve or deny an application or request for funding pursuant to the Program, and its determination of the amount of funding to be provided, shall be final.
14 Attachment A: Enabling Legislation
Building Homes and Jobs Act
Chapter 2.5 of the Health and Safety Code (Sections 50470 – 50475) (Chapter 364, Statutes of 2017)
Health and Safety Code 50470.
(a) (1) There is hereby created in the State Treasury the Building Homes and Jobs Trust Fund. All interest or other increments resulting from the investment of moneys in the fund shall be deposited in the fund, notwithstanding Section 16305.7 of the Government Code.
(2) Moneys in the Building Homes and Jobs Trust Fund shall not be subject to transfer to any other fund pursuant to any provision of Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, except to the Surplus Money Investment Fund.
(b) Moneys in the Building Homes and Jobs Trust Fund shall be appropriated either through the annual Budget Act, or as provided in this subdivision, in accordance with the following:
(1) Moneys collected on and after January 1, 2018, and until December 31, 2018, shall, upon appropriation by the Legislature, be allocated as follows:
(A) Fifty percent of deposits into the fund shall be made available for local governments to update planning documents and zoning ordinances in order to streamline housing production, including, but not limited to, general plans, community plans, specific plans, sustainable communities’ strategies, and local coastal programs. Eligible uses also include new environmental analyses that eliminate the need for project-specific review and local process updates that improve and expedite local permitting. (i) Five percent of the funds specified by this subparagraph shall be available for technical assistance to jurisdictions updating specified planning documents. Technical assistance shall be provided by the department and the Governor’s Office of Planning and Research. (ii) The funds to be allocated pursuant to this subparagraph shall be held by the department until a local government submits a request for use. The request shall include a description of the proposed use of the funds in the interest of accelerating housing production. The proposed use of these funds shall be included in the local government’s funding plan and annual reports pursuant to subclauses (II) and (III) of clause (ii) of subparagraph (B) of paragraph (2). Each recipient of funds under the program shall encumber the funds by December 31, 2020, and shall expend those funds no later than December 31, 2023. Any of these funds not allocated by the department within the first two years that those funds are available shall be made available by the department for the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675)).
(B) Fifty percent of deposits into the fund shall be made available to the department to assist persons experiencing or at risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, 15 navigation centers, and the new construction, rehabilitation, and preservation of permanent and transitional rental housing. (C) The department shall ensure geographic equity in the distribution and expenditure of funds allocated pursuant to this paragraph. (2) Moneys collected on and after January 1, 2019, shall be allocated as follows:
(A) Twenty percent of all moneys in the fund shall, upon appropriation by the Legislature, be expended for affordable owner-occupied workforce housing.
(B) (i) Seventy percent of moneys deposited in the fund shall, upon appropriation by the Legislature, be made available to local governments as follows:
(I) Ninety percent of the moneys specified in this
subparagraph shall be allocated based on the formula
specified in Section 5306 of Title 42 of the United States Code, in accordance with the distribution of funds pursuant to that formula for the federal Fiscal Year 2017, except that the portion allocated to nonentitlement areas pursuant to that section shall be distributed through a competitive grant program, administered by the department, as follows:
(ia) The department shall award priority points to a
county that has a population of 200,000 or less within
the unincorporated areas of the county, to a local
government that did not receive an award based on
the formula specified in Section 5306 of Title 42 of the United States Code in 2016, and to a local
government that pledges to use the money awarded
pursuant to a competitive grant under this subclause
to assist persons experiencing or at risk of
homelessness, including, but not limited to, providing
rapid rehousing, rental assistance, navigation centers, and the new construction, rehabilitation, and
preservation of permanent and transitional rental
housing.
(ib) Moneys awarded to a local government pursuant
to the competitive grant program shall be used for the
purposes specified in subparagraph (D).
(II) The remaining 10 percent of the moneys specified in this subparagraph shall be allocated equitably among local
jurisdictions that are nonentitlement areas pursuant to the formula specified in Section 5306 of Title 42 of the United States Code for federal Fiscal Year 2017.
(ii) To receive moneys pursuant to this subparagraph, local governments shall document minimum standards including the following:
(I) Submit a plan to the department detailing the manner in which allocated funds will be used by the local government in a manner consistent with this paragraph and to meet the 16 local government’s unmet share of the regional housing needs allocation.
(II) Have a compliant housing element with the state and submit a current annual report pursuant to Section 65400 of the Government Code.
(III) Submit an annual report to the department that provides ongoing tracking of the uses and expenditures of any
allocated funds.
(IV) Funds may be expended for the uses listed in
subparagraph (D). Two or more local governments that
receive an allocation pursuant to this subparagraph may expend those moneys on a joint project that is an authorized use under subparagraph (D).
(V) Prioritize investments that increase the supply of housing to households that are at or below 60 percent of area
median income, adjusted for household size.
(VI) If a local government does not have a documented plan to expend the moneys allocated to it pursuant to this
subparagraph within five years of that allocation, those moneys shall be exempt from the allocation requirements in this paragraph and shall revert to, and be paid and deposited in, the Housing Rehabilitation Loan Fund established
pursuant to Section 50661 to be used for the Multifamily Housing Program (Chapter 6.7 (commencing with Section
50675)) or for technical assistance for local governments. (VII) A local government may petition the department to return any moneys allocated to it pursuant to this
subparagraph. Any moneys returned pursuant to this clause shall be used for the Multifamily Housing Program (Chapter

6.7 (commencing with Section 50675)).
(C) Thirty percent of moneys deposited in the fund shall be made available to the department for use as follows:
(i) Five percent of the moneys deposited in the fund shall, upon appropriation by the Legislature, be used for state incentive programs, including loans and grants administered by the department. If the department receives insufficient funding applications for incentive programs financed pursuant to this clause, the department shall make those funds available for the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675)).
(ii) (I) Subject to subclause (II), 10 percent of the moneys deposited in the fund shall, upon appropriation by the
Legislature, be used to address affordable homeownership and rental housing opportunities for agricultural workers and their families.
(II) On and after January 1, 2020, housing funded pursuant to this clause shall not be rented, sold, or subleased to an 17 agricultural employer, as defined in Section 1140.4 of the Labor Code, or its agent, or a farm labor contractor, as defined in Section 1682 of the Labor Code, or its agent, who employs at least one H-2A worker, as defined in Section 50205, until the expiration of the regulatory agreement or affordability covenant, as applicable. A person or entity who receives funds made available pursuant to this clause on or after January 1, 2020, and expends any of those funds for the purpose of funding predevelopment of, developing, or operating any housing that is rented, sold, or subleased to an agricultural employer, as defined in Section 1140.4 of the Labor Code, or its agent, or a farm labor contractor, as defined in Section 1682 of the Labor Code, or its agent, and who employs at least one H-2A worker, as defined in Section 50205, until the expiration of the regulatory agreement or affordability covenant, as applicable, shall reimburse the department or other state agency that provided those funds, as provided in paragraph (2) of subdivision (b) of Section 50205. This subclause shall not apply to any contract
entered into or any financial assistance provided pursuant to this clause prior to January 1, 2020.
(III) A person or entity who receives funds made available pursuant to this section on and after January 1, 2020, and expends any of those funds for the purpose of funding
predevelopment of, developing, or operating any housing shall submit a declaration to the department declaring the following:
(ia) (Ia) The person or entity is not an agricultural
employer, as defined in Section 1140.4 of the
Labor Code, or its agent, or a farm labor
contractor, as defined in Section 1682 of the
Labor Code, or its agent, who employs at least
one H-2A worker, as defined in Section 50205.
(Ib) The person or entity will not rent, sell, or
sublease any housing funded pursuant to this
chapter to an agricultural employer, as defined
in Section 1140.4 of the Labor Code, or its
agent, or a farm labor contractor, as defined in
Section 1682 of the Labor Code, or its agent,
who employs at least one H-2A worker, as
defined in Section 50205, until the expiration of
the regulatory agreement or affordability
covenant, as applicable.
(ib) The declaration described in sub-subclause (ia)
can be met through the inclusion in a regulatory
agreement or affordability covenant, as applicable,
18 with the department that is signed by the person or
entity receiving funds pursuant to this chapter.
(iii) Fifteen percent of the moneys deposited in the fund shall, notwithstanding any other provision of this section or Section 13340 of the Government Code, be continuously appropriated to the California Housing Finance Agency for the purpose of creating mixed income multifamily residential housing for lower to moderateincome households pursuant to Chapter 6.7 (commencing with Section 51325) of Part 3.
(D) The moneys in the fund allocated to local governments may be expended for the following purposes:
(i) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low, very low, low-, and moderateincome households, including necessary operating subsidies. (ii) Affordable rental and ownership housing that meets the needs of a growing workforce earning up to 120 percent of area median income, or 150 percent of area median income in high-cost areas. (iii) Matching portions of funds placed into local or regional housing trust funds.
(iv) Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of Section 34176 of the Health and Safety Code.
(v) Capitalized reserves for services connected to the creation of new permanent supportive housing, including, but not limited to, developments funded through the Veterans Housing and
Homelessness Prevention Bond Act of 2014.
(vi) Assisting persons who are experiencing or at risk of homelessness, including providing rapid rehousing, rental assistance, navigation centers, emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.
(vii) Accessibility modifications.
(viii) Efforts to acquire and rehabilitate foreclosed or vacant homes. (ix) Homeownership opportunities, including, but not limited to, downpayment assistance.
(x) Fiscal incentives or matching funds to local agencies that approve new housing for extremely low, very low, low-, and moderate-income households.
(3) A state or local entity that receives an appropriation or allocation pursuant to this chapter shall use no more than 5 percent of that appropriation or allocation for costs related to the administration of the housing program for which the appropriation or allocation was made.
(c) Both of the following shall be paid and deposited in the fund:
(1) Any moneys appropriated and made available by the Legislature for purposes of the fund.
19 (2) Any other moneys that may be made available to the department for the purposes of the fund from any other source or sources.
(d) In consultation with stakeholders, the department may adopt guidelines to implement this section, including to determine allocation methodologies. Any guideline, rule, policy, or standard of general application employed by the department in implementing this chapter shall not be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).

Attachment B: Required Resolution Template
RESOLUTION NO. [insert resolution number]
A RESOLUTION OF THE [INSERT EITHER “CITY COUNCIL” OR “COUNTY BOARD OF
SUPERVISORS”] OF [INSERT THE NAME OF THE CITY OR COUNTY] AUTHORIZING APPLICATION FOR, AND RECEIPT OF, Prohousing Incentive Program funds.

WHEREAS, pursuant to Health and Safety Code 50470 et. Seq, the California Department of Housing and
Community Development (Department) is authorized to issue Guidelines as part of an incentive program (hereinafter referred to by the Department as the Prohousing Incentive Program or “PIP”); and
WHEREAS the [insert either “City Council” or “County Board of Supervisors”] of [insert the
name of the City or County] desires to submit a PIP grant application package (“Application”), on the forms provided by the Department, for approval of grant funding for eligible activities toward planning and implementation activities related to housing and community development as a result of meeting eligibility criteria including but not limited to Prohousing Designation; and
WHEREAS, the Department has issued Guidelines and Application on XXXXXXXXXXXXX in the
amount of $xxxxxxxx for PIP;
Now, therefore, the [insert either “City Council” or “County Board of Supervisors”] of
[insert the name of the city or county] (“Applicant”) resolves as follows:

SECTION 1. The [insert the authorized designee’s TITLE ONLY] is hereby authorized and
directed to submit an Application to the Department in response to the NOFA, and to apply for the PIP grant funds in a total amount not to exceed $__________; SECTION 2. In connection with the PIP grant, if the Application is approved by the Department,
the [insert the authorized designee’s TITLE ONLY] of the [insert the name of the City or
County] is authorized and directed to enter into, execute, and deliver on behalf of the Applicant, a State of California Agreement (Standard Agreement) for the amount of [$ enter the
dollar amount of the Applicant’s request], and any and all other documents required or
deemed necessary or appropriate to evidence and secure the PIP grant, the Applicant’s obligations related thereto, and all amendments thereto; and 1 SECTION 3. The Applicant shall be subject to the terms and conditions as specified in the Guidelines,
and the Standard Agreement provided by the Department after approval. The Application and
any and all accompanying documents are incorporated in full as part of the Standard Agreement.

Any and all activities funded, information provided, and timelines represented in the Application
will be enforceable through the fully executed Standard Agreement. Pursuant to the Guidelines and
in conjunction with the terms of the Standard Agreement, the Applicant hereby agrees to use the
funds for eligible uses and allowable expenditures in the manner presented and specifically
identified in the approved Application.

ADOPTED ON [insert the date of adoption], by the [insert either “City Council” or “County
Board of Supervisors”] of [insert the name of the City or County] by the following vote count:

AYES: NAYS: ABSENT: ABSTAIN:

ATTEST: APPROVED AS TO FORM:
[Signature of Attesting Officer]
___________________________________________APPROVED
[Signature of approval]
Attachment C: Definitions
Capitalized terms shall have the meanings set forth below:

A. “Department” means the California Department of Housing and Community Development.

B. “Designated Program Year” means the designated time period as indicated in the Notice of Funding Availability (“NOFA”) issued by the Department for each funding round.

C. “Eligible Applicant” means a city, county, or city and county that is in compliance with applicable housing laws as described in section 202(F) herein.

D. “Extremely Low-Income Households” has the meaning set forth in Health and Safety Code Section 50106.

E. “Low-Income Households” has the meaning set forth for lower-income households in Health and Safety Code Section 50079.5.

F. “Preserved” means units Preserved at affordable housing costs to lower-income households by acquisition of the units or the purchase of affordability covenants and restrictions as described in paragraph (2) of subdivision (c) of Section 65583.1 of the Government Code, except that the city, county, or city and county may have committed assistance at any time during the projection period.

G. “Program” means the Prohousing Incentive Program implemented by these Guidelines.

H. “Prohousing Designation” means the Eligible Applicant has fulfilled the criteria codified at CCR Title 25 HCD Div. 1, Chapter 6, Subchapter 6.6, Sections 6600 through 6607, consecutive prohousing-regulation-text.pdf (ca.gov).

I. “Prohousing Designation Score” means the number of points allocated to a jurisdiction as part of the Prohousing Designation Program for the purpose of determining whether the jurisdiction receives designation, per the regulations codified in the California Code of Regulations Title 25 Housing and Community Development, Division 1, Chapter 6, Subchapter 6.6, Sections 6600 through 6607, Consecutive Prohousing Designation Program.

J. “Substantially Rehabilitated” means units at imminent risk of loss to the housing stock which are Substantially Rehabilitated and therefore represent a net increase in the community’s affordable housing stock as described in paragraph (2) of subdivision (c) of Section 65583.1 of the Government Code, except that the city, county, or city and county may have committed assistance at any time during the projection period.

K. “Very Low-Income Households” has the meaning set forth in Health and Safety Code Section 5015.

Promissory Note Pg. 1

Exhibit C: Promissory Note

PLHA / PIP LOAN PROMISSORY NOTE
$1,032,371.43 [DATE]
FOR VALUE RECEIVED, COMMUNITY SYSTEM SOLUTIONS, a California nonprofit corporation (the “Maker”), having an address of 7806 Juarez Way, Fair Oaks, CA 95628, promises to pay CITY OF CRESCENT CITY (“Holder”), the principal sum not to exceed One Million Thirty-Two Thousand Three Hundred Seventy-One Dollars and Forty-Three Cents ($1,032,371.43), together with simple interest as detailed herein, pursuant to the terms and conditions set forth below.
§ 1. FUNDS. This Promissory Note (the “Note”) is made in connection with a Loan Agreement entered into by and between Holder and Maker utilizing two awards through the California Department of Housing and Community Development (“HCD”): (1) Permanent Local Housing Allocation (“PLHA”) funds to Holder pursuant to that certain Standard Agreement No. 23-PLHA-18498 between HCD and Holder dated 09/19/2024 (“PLHA Standard Agreement”); (2) Prohousing Incentive Program (“PIP”) funds to the Holder pursuant to that certain Standard Agreement No. 23-PIP-18478 between HCD and Holder dated 12/09/2024 (“PIP Standard Agreement”). Holder makes a loan of $383,099.10 in PLHA funds and $649,272.33 in PIP funds to Maker for the construction of affordable housing that will address the City’s housing needs (the “Housing Project”) on certain real property currently identified as 964 Third Street, Crescent City, California (the “Site”). § 2. SECURITY. Payment of this Note is secured by a Deed of Trust and Assignment of Rents (the “Deed of Trust”) from Maker to Holder to be recorded against the Site. § 3. PAYMENT. Payment on this Note is deferred for (10) years from June 1, 2026.

If the Note is not forgiven by Holder in accordance with § 4 hereof, then simple interest shall begin to accrue at the rate of 3.0% per annum and periodic payments shall commence July 1 st of that same year. Monthly payments of $5,7251.51 per month for 240 months. All payments made hereunder shall be credited first to any accrued but unpaid interest, then to current interest due and owing and lastly to principal. Interest not paid current shall accrue and shall not be compounded. All principal and interest due and payable on June 1, 2046.

Maker may pay any portion of the principal balance at any time without notice and without prepayment penalties or fees.

Any payments due hereunder shall be made in lawful money of the United States to the City of Crescent City, 377 J Street, Crescent City, California 95531. The place of payment may be changed from time to time as Holder may designate in writing.

Promissory Note Pg. 2
§ 4. FORGIVABLE. The Note will be determined to be forgivable if the following criteria are met:
a. The loaned funds were spent on one or more PLHA/PIP Program eligible activities: land acquisition, demolition and site improvements, off-site improvements, architectural fees, engineering fees, permits and development fees, accounting fees, title and recording fees, taxes and assessment, insurance costs, environmental review (including require studies), financing costs (appraisal / market study, performance bond, construction loan interest, lender inspections, lender legal costs, borrower legal costs, soft debt / total construction period interest, bond issuance costs, construction-permanent loan costs, capitalized operation / transition reserve), site and building construction costs, leaseup costs, contingencies and developer fees. b. The loaned funds were spent on a Housing Project that created at least 4 affordable housing units for very low, low, or moderate-income households. The units must be certified for occupancy prior to June 1, 2030.
c. The Maker is in compliance with this Promissory Note, the Deed of Trust and the Affordable Housing Covenant.
§ 5. DEFAULT. Notwithstanding anything to the contrary provided herein, in the event that the Housing Project is in material default under the terms of the Affordable Housing Covenant such that the affordability restrictions are no longer in effect, or if there shall have been an uncured event of default under this Note or the Deed of Trust securing this Note after the passage of applicable notice and cure periods, then the entire unpaid principal of this Note and accrued interest thereon shall be immediately due and payable. § 6. SITE MAINTENANCE. Maker hereby covenants and agrees that it shall maintain, or cause to be maintained, the Site in a manner consistent with the provisions set forth therefor in the Crescent City Municipal Code and shall keep the entire Site reasonably free from any accumulation of debris or waste materials prior to and after construction. If, at any time, Maker fails to maintain the Site, and has either failed to commence to cure such condition or to diligently prosecute to completion the condition or the condition is not corrected after expiration of thirty (30) days from the date of written notice from Holder to Maker, Holder may perform the necessary corrective maintenance, and Maker shall pay such costs as are reasonably incurred for such maintenance. Holder shall have the right to place a lien on the property should Maker not reimburse Holder for such costs within sixty (60) days following Holder's written demand to Maker for reimbursement of such costs.

Maker, on behalf of itself its heirs, successors and assigns, hereby grants to Holder and its officers, employees and agents, an irrevocable license to enter upon the Site to perform such maintenance during normal business hours after receipt of written notice Promissory Note Pg. 3
from Holder as hereinabove described and Maker's failure to cure or remedy such failure within sixty (60) days of such notice. Any such entry shall be made only after reasonable notice to Maker, and Holder shall indemnify and hold Maker harmless from any claims or liabilities pertaining to any such entry by Holder. Failure by Maker to maintain the Site in the condition provided in this Section may, in Holder's reasonable discretion, constitute a default under this Note and the related Deed of Trust.

The foregoing covenants shall remain in effect for the Site for a period of fiftyfive (55) years from the date of the Certificate of Completion is issued, or until all amounts due Holder hereunder are paid in full, whichever is later. § 7. DEFAULT. The occurrence of any of the following shall constitute an event of default under this Note: (i) Maker fails to pay any amount due hereunder within fifteen (15) days of its due date; (ii) Any default by Maker under this Note, the Deed of Trust, the City Loan Agreement, the PLHA Standard Agreement, or the PIP Standard Agreement after the expiration of applicable notice and cure periods; (iii) Any default by Maker under any other document affecting the Housing Project or Site after the expiration of any applicable notice or cure periods provided therein; (iv) except for transfers that are permitted pursuant to Section 2 of that certain Affordable Housing Covenant between Maker and Holder to be entered into concurrently herewith, the sale, transfer or other conveyance of all or any part of the Site or Housing Project, or any interest in it, without Holder's prior written consent, which shall not be unreasonably withheld.
§ 8. DEFAULT – IMMEDIATELY DUE & PAYABLE. Upon the occurrence of any event of default, or at any time thereafter, at the option of Holder hereof and without notice, the entire unpaid principal and interest owing on this Note shall become immediately due and payable. This option may be exercised at any time following any such event, and the acceptance of one or more installments thereafter shall not constitute a waiver of Holder's option. Holder's failure to exercise such option shall not constitute a waiver of such option with respect to any subsequent event. Holder's failure in the exercise of any other right or remedy hereunder or under any agreement which secures the indebtedness or is related thereto shall not affect any right or remedy and no single or partial exercise of any such right or remedy shall preclude any further exercise thereof.
§ 9. DEFAULT – PENALTY. At all times when Maker is in default hereunder by reason of Maker's failure to pay principal due under this Note or any amounts due under any loan documents securing this Note, the interest rate on the sums as to which Maker is in default (including principal, if Holder has elected to declare it immediately due and payable), shall be the lower of the highest rate then allowed by law or two percent (2%) over the prime interest rate announced by Wells Fargo Bank, N.A., as of the date of the default.

Promissory Note Pg. 4
§ 10. Maker and any endorsers hereof and all others who may become liable for all or any part of this obligation, severally waive presentment for payment, demand and protest and notice of protest, and of dishonor and nonpayment of this Note, and expressly consent to any extension of the time of payment hereof or of any installment hereof, to the release of any party liable for this obligation, and any such extension or release may be made without notice to any of said parties and without any way affecting or discharging this liability. § 11. Maker agrees to pay immediately upon demand all costs and expenses of Holder including reasonable attorneys' fees, (i) if after default this Note be placed in the hands of an attorney or attorneys for collection, (ii) if after a default hereunder or under the Deed of Trust, the Standard Agreement or under any loan document referred to herein Holder finds it necessary or desirable to secure the services or advice of one or more attorneys with regard to collection of this Note against Maker, any guarantor or any other party liable therefore or to the protection of its rights under this Note, the Deed of Trust, the PLHA Standard Agreement, the PIP Standard Agreement or other loan document, or (iii) if Holder seeks to have the Site abandoned by or reclaimed from any estate in bankruptcy, or attempts to have any stay or injunction prohibiting the enforcement or collection of the Note or prohibiting the enforcement of the Deed of Trust or any other agreement evidencing or securing this Note lifted by any bankruptcy or other court. § 12. If Holder shall be made a party to or shall reasonably intervene in any action or proceeding, whether in court or before any governmental agency, affecting the property or the title thereto or the interest of the Holder under the Deed of Trust, including, without limitation, any form of condemnation or eminent domain proceeding, Holder shall be reimbursed by maker immediately upon demand for all costs, charges and attorneys' fees incurred by Holder in any such case, and the same shall be secured by the Deed of Trust as a further charge and lien upon the Site.
§ 13. Payment of this Note is secured solely by the Deed of Trust recorded against the Site and all improvements thereon, without recourse of any kind against Maker or its constituent entities or limited partners.
§ 14. Any notices provided for in this Note shall be given by mailing such notice by certified mail, return receipt requested, at the address stated in this Note or at such other address as either party may designate in written notice. Copies of any notices given under this Note shall be sent as follows:

Promissory Note Pg. 5
To Holder: City of Crescent City
377 J Street
Crescent City, CA 95531
Attn: City Manager
To Maker: Community System Solutions
7806 Juarez Way
Fair Oaks, CA 95628
Attn: Michael Bahr, CEO
§ 15. This Note shall be binding upon Maker, its successors and assigns. § 16. This Note shall be construed in accordance with and be governed by the laws of the State of California.
§ 17. If any provision of this Note shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby.

IN WITNESS WHEREOF, the Maker has executed this Note effective as of the date first above written.

COMMUNITY SYSTEM SOLUTIONS
By:

MICHAEL BAHR, CEO
Deed of Trust Pg. 1
Exhibit D: Deed of Trust

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of Crescent City
377 J Street
Crescent City, CA 95531
Attn: City Clerk
TAX STATEMENTS: NO CHANGE
APN 118-120-025-000 Exempt from Recording Fees Per Gov. Code Section 27383 Exempt from SB 2 Fees per Gov. Code § 27388.1(a)(2)(D)

DEED OF TRUST AND ASSIGNMENT OF RENTS
THIS DEED OF TRUST, FIXTURE FILING, AND ASSIGNMENT OF RENTS (“Deed of Trust”) is made on this ____ day of ____ 20___ by COMMUNITY SYSTEM SOLUTIONS, a California nonprofit corporation, as trustor (“Borrower”), _______________________ (“Trustee”), for the benefit of CITY OF CRESCENT CITY, a California municipal corporation (“Lender”).

The Borrower, in consideration of the indebtedness recited and the trust created in this Deed of Trust, irrevocably grants and conveys to Trustee, in trust, with power of sale all of its right title and interest in and to that certain real property located in the City of Crescent City, County of Del Norte, State of California, legally described in “Exhibit A” attached hereto and made a part hereof.

Together with all of the improvements now or hereafter erected on said property, and all easements, rights, appurtenances, rents (subject, however, to the rights and authorities given in this Deed of Trust to the Lender to collect and apply such rents), royalties, mineral, oil and gas rights and profits, water, water rights, and water stock, and all fixtures now or hereafter attached to said property, all of which including replacements and additions thereto, shall be deemed to be and remain a part of the property covered by this Deed of Trust; and all of the foregoing, together with said property are referred to in this Deed of Trust as the “Property”;
To secure for the benefit of Lender the repayment of the indebtedness evidenced by the Borrower's promissory note dated _________________ (the “Note”) in the principal sum of $1,032,371.43 and the performance of the covenants and agreements of the Borrower contained in this Deed of Trust, the Note, and that certain Affordable Housing Covenant to Deed of Trust Pg. 2
be entered into between Lender and Borrower and recorded in the Official Records of Del Norte County concurrently herewith.

Borrower covenants and agrees as follows:

1. PAYMENT OF PRINCIPAL AND INTEREST. Borrower shall pay when due the interest and the principal of the indebtedness evidenced by the Note from the sources and pursuant to the terms of the Note.

2. COMPLIANCE WITH SENIOR DEED OF TRUST. Borrower covenants and agrees to comply with the terms and conditions of any senior deeds of trust recorded against the Property (collectively, the “Senior Encumbrances”).

3. CHARGES AND LIENS. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Deed of Trust. Borrower shall promptly pay when due all installments or payments required by Lender and comply with all obligations of any deed of trust that is prior to this Deed of Trust.

4. INSURANCE PROCEEDS. Any insurance proceeds received as a result of damage to the Property from fire or other calamity shall be first expended as required by any Senior Encumbrances.

5. PROTECTION OF LENDER'S SECURITY. If Borrower fails to perform the covenants and agreements contained in this Deed of Trust, or if any action or proceeding is commenced which materially affects the Lender's interest in the Property, including, but not limited to, default on or foreclosure of a prior deed of trust, eminent domain, insolvency, code enforcement, or arrangement or proceedings involving a bankrupt or decedent, then the Lender at Lender's option, upon notice to the Borrower, may make such appearances, disburse such sums and take such action as is necessary to protect the Lender's interest including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs, but shall have no right of reimbursement.

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

7. CONDEMNATION. Subject to the rights of the holder of a prior deed of trust, 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.

Deed of Trust Pg. 3
In the event of a total taking of the Property, the proceeds shall be treated as if received from a sale of the Property. The proceeds shall be applied to the sums to be repaid in the amount and manner described in the Senior Encumbrances and the documents evidencing the indebtedness secured thereby. Any part of the proceeds remaining after these amounts have been paid shall be paid to the Borrower. In the event of a partial taking of the Property, unless Borrower and Lender agree in writing, the proceeds shall be treated as if received from a sale of that portion of the Property which is taken in the condemnation. The percentage value of the portion taken, as compared to the full value of the entire Property, shall be determined by dividing the condemnation proceeds by the fair market value of the entire Property just prior to the taking. This percentage value, once determined, shall be used in the following manner to allocate the condemnation proceeds:
a. First, to the payment of any amount owing under the Senior Encumbrances and the documents evidencing the indebtedness secured thereby; b. Second, to payment of the Note;
c. Third, to the Borrower.

8. BORROWER NOT RELEASED. Extension of the time for payment or modification of amortization of the sums secured by this Deed of Trust granted by the Lender to any successor in interest of Borrower shall not operate to release, in any manner, the liability of the original Borrower and Borrower's successors in interest. Lender shall not be required to commence proceedings against such successor or refuse to extend time for payment or modification of 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.

9. FORBEARANCE BY LENDER NOT A WAIVER. Any forbearance by the Lender in exercising any right or remedy hereunder, otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any such right or remedy. The procurement of insurance or the payment of taxes or other liens or charges by Lender shall not be a waiver of Lender's right to accelerate the maturity of the indebtedness secured by this Deed of Trust.

10. REMEDIES CUMULATIVE. All remedies provided in this Deed of Trust are distinct and cumulative to any other right or remedy under this Deed of Trust or afforded by law or equity, and may be exercised concurrently, independently or successively.

11. SUCCESSORS AND ASSIGNS BOUND; CAPTIONS. The covenants and agreements contained in this Deed of Trust shall bind, and the rights hereunder shall, subject to Section 14 hereof, inure to the benefit of, the respective successors and assigns of Lender and Borrower. The captions and headings of the Sections of this Deed of Trust are for convenience only and are not to be used to interpret or define the provisions hereof.

Deed of Trust Pg. 4

12. NOTICE. Except for any notice required under applicable law to be given in another manner, any notice to Borrower or Lender provided for in this Deed of Trust shall be given at the addresses provided in the Note and may be given by certified mail or reputable overnight delivery service.

13. GOVERNING LAW; SEVERABILITY. This Deed of Trust shall be governed by the laws of the State of California. In the event that any provision or clause of this Deed of Trust or the Note as incorporated herein 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 provisions of the Deed of Trust and Note are declared to be severable.

14. TRANSFER OF THE PROPERTY. If all or any of the Property is sold or conveyed by Borrower, then the sums secured by this Deed of Trust shall be immediately due and payable. In the event of such an acceleration, Lender shall send Borrower written notice of the acceleration in accordance with Section 12 hereof. Such notice shall provide a period of not less than 60 days from the date the notice is mailed within which the Borrower may pay the sums due. If the Borrower fails to pay such sums prior to the expiration of such period, Lender may, without further notice or demand on Borrower, invoke any remedies permitted by Section 15 hereof.

15. OTHER ACCELERATION; REMEDIES Upon Borrower's breach of any covenant or agreement of Borrower in this Deed of Trust or the Note (including covenants to pay sums when due---but excluding the covenants to pay, when due, any sums secured by this Deed of Trust by acceleration upon sale or conveyance which is governed by Section 14 above and any sums payable upon the maturity date of the Note), Lender shall mail notice to Borrower as provided in Section 12 hereof specifying: (a) the breach; (b) a date by which such breach must be cured (which must be at least 30 days after the date of the notice); and (c) that failure to cure such breach on or before the date specified in the notice will result in acceleration of the sums secured by this Deed of Trust and sale of the Property. If the breach is not cured on or before the date specified in the notice, the Lender, at its option, may seek remedies under applicable law, including foreclosure. Lender shall be entitled to collect all reasonable costs and expenses incurred in pursuing such remedies, including, but not limited to, reasonable attorneys’ fees.

Subject to the terms and conditions provided herein, if Lender invokes the power of sale, the Lender shall also execute or cause Trustee to execute a written notice of the occurrence of an event of default and of Lender's election to cause 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 a 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 Deed of Trust Pg. 5
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. Lender or 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 prime 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 and attorneys' fees and costs of title evidence; (b) to all sums secured by this Deed of Trust, as evidenced by the Note; and (c) the excess, if any, to the person or persons legally entitled thereto.

16. BORROWER'S RIGHT TO REINSTATE. Notwithstanding Lender's acceleration of the sums secured by this Deed of Trust, Borrower shall have the right to have any proceedings begun by Lender to enforce covenants of this Deed of Trust relating to sums due and payable by Borrower discontinued at any time prior to five days before the Property is scheduled for sale pursuant to the power of sale contained in this Deed of Trust or at any time prior to entry of a judgment enforcing this Deed of Trust if: (a) Borrower pays Lender all sums which would be then due under this Deed of Trust, the Note and notes securing Future Advances, if any, had no acceleration occurred; (b) 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 Section 15 hereof, including, but not limited to reasonable attorneys' fees; (c) Borrower takes such actions 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.

17. ASSIGNMENT OF RENTS; APPOINTMENT OF RECEIVER; LENDER IN POSSESSION.

As additional security hereunder, subject to the rights of senior lien holders, Borrower hereby assigns to Lender the rents of the Property, provided that Borrower shall, prior to acceleration under Section 14 or 15 hereof (as applicable), have the right to collect such rents as they become due. Upon acceleration under Section 14 or 15 hereof (as applicable) or abandonment of the Property, Lender, in person, by agent or by judicially appointed receiver, shall be entitled to enter upon, take possession of, rent and manage the Property and to collect the rents of the Property.

All rents collected by the Lender or by a judicially appointed receiver shall be applied first to payment of the cost of management of the Property and collection of rents, including, but not limited to, receiver's fees, premiums on receiver's bonds and Deed of Trust Pg. 6
reasonable attorneys' fees, and then to the sums secured by this Deed of Trust.

Lender and the receiver shall be liable to account for those rents actually received and expenditures actually incurred.

18. RECONVEYANCE. Upon payment of all sums evidenced by the Note and secured by this Deed of Trust, 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.

19. SUBSTITUTE TRUSTEE. Lender, at Lender's option, may from time to time remove Trustee and appoint a successor trustee to act as Trustee under this Deed of Trust.

Without conveyance of the Property, the successor trustee shall succeed to all the title, power and duties conferred upon the Trustee in this Deed of Trust and by applicable law.

20. REQUEST FOR NOTICES. Borrower requests that copies of the notice of default and notice of sale be sent to the Borrower's address and to Borrower’s investor limited partners at the address set forth in Section 16 of the Note.

21. STATEMENT OF OBLIGATION. The Lender may collect a fee not to exceed $15.00 for furnishing the statement of obligation as provided by Section 2943 of the Civil Code of the State of California.

22. NO DISCRIMINATION. The Trustor covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall the Trustor itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the Property.

23. NONDISCRIMINATION CLAUSES. All deeds, leases or contracts made relative to the Property, the improvements thereon or any part thereof, shall contain or be subject to the nondiscrimination clauses set forth in California Health and Safety Code Section 33436.

24. HAZARDOUS SUBSTANCES.
a. As used in this Section, the following terms shall have the following meanings:

Deed of Trust Pg. 7
"Environmental Laws" means all statutes, ordinances, orders, rules, regulations, plans, policies or decrees and the like now or hereafter in effect relating to (A) Hazardous Substance Activity or Hazardous Substances; (B) the generation, use, storage, transportation or disposal of Hazardous Substances, or solid waste; or (C) occupational safety and health, industrial hygiene, land use or the protection of human, plant or animal health, safety or welfare, including, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. Section 9601 et seq.) ("CERCLA"); the Hazardous Material Transportation Act (49 U.S.C.

Section 180 et seq.); the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Section 136 et seq.); the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.); the Clean Air Act (42 U.S.C. Section 740 et seq.); the Federal Water Pollution Control Act (33 U.S.C. Section 1251 et seq.); the Occupational Safety and health Act (29 U.S.C. Section 651 et seq.); the Safe Drinking Water Act (42 U.S.C. Section 300f et seq.); the Porter-Cologne Water Quality Control Act (California Water Code Section 13020 et seq.); the Safe Drinking Water and Toxic Enforcement Act of 1986 (California Health & Safety Code Section 25249.5 et seq.); the Hazardous Substance Account Act (California Health & Safety Code Section 25300 et seq.); the Hazardous Waste Control Act (California Health & Safety Code Section 25100 et seq.); The California Environmental Quality Act (California Public Resources Code Section 2100 et seq.); and the rules, regulations and ordinances of the City or County of San Francisco or any applicable federal, state and local agencies or bureaus, as amended from time to time.
"Foreclosure Transfer" means the transfer of title to all or any part of the Property or the Trust Estate at a foreclosure sale under the Deed of Trust, either pursuant to judicial decree or the power of sale contained in the Deed of Trust, or by deed in lieu of such foreclosure.
"Hazardous Substances" means (A) any chemical, compound, material, mixture or substance that is now or hereafter defined or listed in, or otherwise classified pursuant to, any Environmental Laws as a "hazardous substance," "hazardous material," "hazardous waste," "extremely hazardous waste," "acutely hazardous waste," "radioactive waste," "infectious waste," "biohazardous waste," "toxic substance," "pollutant," "toxic pollutant," "contaminant" as well as any other formulation not mentioned herein intended to define, list, or classify substances by reason of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, toxicity, reproductive toxicity, "EP toxicity" or "TCLP toxicity"; (B) petroleum, natural gas, natural gas liquids, liquified natural gas, synthetic gas usable for fuel (or mixtures of natural gas and such synthetic gas) and ash produced by a resource recovery facility utilizing a municipal solid waste stream, and drilling fluids, produced waters and other wastes associated with the exploration, development or production of crude oil, natural gas, or geothermal resources; (C) "hazardous substance" as defined in Section 2782.6(d) of the California Deed of Trust Pg. 8
Civil Code; (D) "waste" as defined in Section 13050(d) of the California Water Code; (E) asbestos in any form; (F) urea formaldehyde foam insulation; (G) polychlorinated biphenyls (PCBs); (H) radon; and (I) any other chemical, material, or substance that, because of its quantity, concentration, or physical or chemical characteristics, exposure to which is limited or regulated for health and safety reasons by any governmental authority, or which poses a significant present or potential hazard to human health and safety or to the environment if released into the workplace or the environment.

Notwithstanding the foregoing, “Hazardous Substances” shall not include any chemical, compound, material, mixture or substance used in the normal course of constructing or operating an apartment complex, so long as such chemical, compound, material, mixture or substance is used in accordance with environmental laws
"Hazardous Substance Activity" means any actual, proposed, or threatened use, storage, holding, existence, location, release (including, without limitation, any spilling, leaking, leaching, pumping, pouring, emitting, emptying, dumping, disposing into the environment, and the continuing migration into or through soil, surface water, groundwater or any body of water or the air), discharge, deposit, placement, generation, processing, construction, treatment, abatement, removal, disposal, disposition, handling, or transportation of any Hazardous Substance from, under, in, into, or on the Property, including without limitation, the movement or migration of any Hazardous Substances from surrounding property, surface water, groundwater or any body of water, or the air under, in, into or onto the Property and any residual Hazardous Substances contamination in, on, or under the Property.
"Losses" means all charges, losses, liabilities, damages (whether actual, consequential, punitive, or otherwise denominated), costs, fees, demands, claims for personal injury or real or personal property damage), actions, administrative proceedings (including informal proceedings), judgments, causes of action, assessments, fines, penalties, costs, and expenses of any kind or character, foreseeable and unforeseeable, liquidated and contingent, proximate and remote, including, without limitation, the following: (A) the reasonable fees and expenses of outside legal counsel; (B) the reasonable fees and expenses of accountants, third-party consultants, and other independent contractors retained by an Beneficiary; (C) costs, including capital, operating and maintenance costs, incurred in connection with any investigation or monitoring of site conditions or any clean-up, remedial, removal or restoration work required or performed by any federal, state or local governmental agency or political subdivision or performed by any non-governmental entity or person that is required by Environmental Laws or administrative ruling or directive because of the presence, suspected presence, release or suspected release of Hazardous Substances in violation of Environmental Laws in the air, soil, surface water or groundwater at the Deed of Trust Pg. 9
Property; (D) any and all diminution in value of the Property, loss of use or damage to the Property, or loss of profits or loss of business opportunity; and (E) reasonable costs and expenses of enforcing this Section. "Environmental Losses" means Losses rising out of or as a result of: (A) the occurrence of any Hazardous Substance Activity; (B) any violation of any applicable Environmental laws relating to the Property or to the ownership, use, occupancy or operation thereof; (C) any investigation, inquiry, order, hearing, action, or other proceeding by or before any governmental agency in connection with any Hazardous Substance Activity; or (D) any claim, demand or cause of action, or any action or other proceeding, whether meritorious or not, brought or asserted against any Indemnitee which directly or indirectly relates to, arises from or is based on any of the matters described in clauses (A), (B), or (C), or any allegation of any such matters. b. Trustor represents and warrants to Beneficiary that Trustor has conducted as appropriate inquiry and investigation, and, to the best of Trustor's knowledge, based on such inquiry and investigation, no portion of the Property is being used or has ever been used at any previous time, for the disposal, storage, treatment, processing or other handling of Hazardous Substances, nor have any Hazardous Substances migrated onto or from the Property. Neither the Property nor Trustor is in violation of or subject to any existing, pending or threatened investigation by any governmental authority under any Environmental Law. Trustor's intended use of the Property will not result in the disposal or release of any Hazardous Substances on, under, about or to the Property or the migration of any Hazardous Substances from the Property. The foregoing representations and warranties shall be continuing and shall be true and correct for the period from the date hereof to the release of this Deed of Trust (whether by payment of the indebtedness secured hereby or foreclosure or action in lieu thereof), and these representations and warranties shall survive such release. c. Trustor represents and warrants to Beneficiary that Trustor has complied with all recommendations by any engineers retained by Trustor and all requirements of any applicable department of environmental resources, environmental protection agency or similar governmental agency, and there are no recommendations by said engineers or requirements ordered by said agency or any other governmental body for environmental investigation or cleanup with respect to the Property.
d. On and after the date hereof, Trustor shall not: (a) allow any Hazardous Substances to be installed, used, introduced, stored, treated, disposed of, generated, manufactured, discharged, dumped, transported or brought in, upon or over the Property in violation of applicable law; (b) allow any soil or ground water contamination or pollution with any Hazardous Substances on the Property in violation of applicable law; (c) allow any Hazardous Substances to migrate from the Property in violation of applicable law; (d) allow any Hazardous Substances to migrate onto the Property from any adjacent properties in violation of applicable law; or (e) allow or cause the Property to be in violation of, or to Deed of Trust Pg. 10
trigger a duly initiated and prosecuted investigation of the Property by any governmental authority under applicable limitations, restrictions, conditions, standards, prohibitions, requirements, obligations, schedules or timetables contained in any local, state and/or federal laws, regulations, codes, ordinances, plans, administrative or judicial orders, decrees, judgments, notices or demand letters issued, entered, promulgated or approved thereunder relating to the environment, land use, water and air quality and Hazardous Substances ("Environmental Requirements").
e. If the presence of any Hazardous Substances on the Property caused or permitted by Trustor results in any contamination of the Property, Trustor shall promptly take all actions, at its sole expense, as are necessary to return the Property to the condition existing prior to the introduction of any such Hazardous Substances to the Property; provided that Beneficiary's approval of such actions shall first be obtained, which approval shall not be unreasonably withheld so long as such actions would not potentially have any material adverse long-term or short-term effect on the Property.
f. At any time after the occurrence and during the continuance of any default under this Section, Beneficiary shall have the following rights and remedies, in addition to any other rights and remedies Beneficiary has under this Deed of Trust:
i. As provided in California Code of Civil Procedure Section 564, Beneficiary or its employees, acting by themselves or through a court appointed receiver may do any of the following: (i) enter upon, possess, manage, operate, dispose of, and contract to dispose of the Property or any part thereof; (ii) take custody of all accounts; (iii) negotiate with governmental authorities with respect to the Property's environmental compliance and remedial measures; (iv) take any action necessary to enforce compliance with environmental provisions, including spending Rent Payments to abate any environmental problem; (v) make, terminate, enforce or modify leases of part or all of the Property; (vi) contract for goods and services, hire agents, employees, and counsel, make repairs, alterations, and improvements to the Property necessary in Beneficiary's judgment to protect or enhance the security hereof; and/or (vii) take any and all other actions which may be necessary or desirable to comply with Trustor's obligations hereunder and under the Loan Documents. All sums realized by the receiver or Beneficiary under this subparagraph, less all costs and expenses incurred by either of them under this subparagraph, including attorneys' fees, and less such sums as Beneficiary or the receiver deems appropriate as a reserve to meet future expenses under this subparagraph, shall be applied on any indebtedness secured hereby in such order as Beneficiary shall determine. Neither application of said sums to said indebtedness, nor any other action taken by Beneficiary or the receiver under this subparagraph shall cure or waive any default or notice of default hereunder, or nullify the effect of any such notice of default. Beneficiary, or any employee or agent of Beneficiary, or a receiver Deed of Trust Pg. 11
appointed by a court, may take any action or proceeding hereunder without regard to the adequacy of the security for the indebtedness secured hereunder, the existence of a declaration that the indebtedness secured hereby has been declared immediately due and payable, or the filing of a notice of default.
ii. With or without notice, and without releasing Trustor from any obligation hereunder, to cure any default of Trustor or in connection with any such default, Beneficiary or its agents, acting by themselves or through a courtappointed receiver, may enter upon the Property or any part thereof and perform such acts and things as Beneficiary deems necessary or desirable to inspect, investigate, assess, and protect the security hereof, including of any of Beneficiary's other rights: (i) to obtain a court order to enforce Beneficiary's right to enter and inspect the Property under California Civil Code Section 2929.5 (in respect of which the decision of Beneficiary as to whether there exists a release or threatened release of hazardous substance, as defined therein, onto the Property shall be deemed reasonable and conclusive as between the parties hereto); and (ii) to have a receiver appointed under California Code of Civil Procedure Section 564 to enforce Beneficiary's right to enter and inspect the Property for hazardous substances as defined therein. All costs and expenses incurred by Beneficiary with respect to the audits, tests, inspections, and examinations which Beneficiary or its agents or employees may conduct, including the fees of engineers, laboratories, contractors, consultants, and attorneys, shall be paid by Trustor. All costs and expenses incurred by Trustee and Beneficiary pursuant to this subparagraph (including court costs, consultant fees and attorney fees, whether incurred in litigation or not and whether before or after judgment) shall bear interest at the Note Rate, from the date they are incurred until said sums have been paid. iii. Beneficiary may seek a judgment that Trustor has breached its covenants, representations and/or warranties with respect to the environmental matters set forth above in this Section, by commencing and maintaining an action or actions in any court of competent jurisdiction for breach of contract pursuant to California Code of Civil Procedure Section 736, whether commenced prior to foreclosure of the Property or after foreclosure of the Property, and to seek the recovery of any and all costs, damages, expenses, fees, penalties, fines, judgments, indemnification payments to third parties, and other out-of-pocket costs or expenses actually incurred by Beneficiary or advanced by Beneficiary (collectively, the "Environmental Costs") relating to the cleanup, remediation or other response action required by applicable law or which Beneficiary believes necessary to protect the Property, it being conclusively presumed between Beneficiary and Trustor that all such Environmental Costs incurred or advanced by Beneficiary relating to the cleanup, remediation, or other response action respecting the Property were made by Beneficiary Deed of Trust Pg. 12
in good faith. All Environmental Costs incurred by Beneficiary under this subparagraph (including court costs, consultant fees and attorney fees, whether incurred in litigation or not and whether before or after judgment) shall bear interest at the Note Rate, from the date of expenditure until said sums have been paid. Beneficiary shall be entitled to bid, at any sale of the Property held hereunder, the amount of said costs, expenses and interest in addition to the amount of the other obligations hereby secured as a credit bid, the equivalent of cash.
iv. As provided in California Code of Civil Procedure Section 726.5, Beneficiary may waive its lien against the Property or any portion thereof, to the extent such property is found to be environmentally impaired as defined therein, and to exercise any and all rights and remedies of an unsecured creditor against Trustor and all of Trustor's assets and property for the recovery of any deficiency and Environmental Costs, including seeking an attachment order under California Code of Civil Procedure Section 483.010. Beneficiary and Trustor each represents and warrants for itself that it has no actual knowledge of any release of any Hazardous Substance (as defined in Section 726.5) on, to or under the Property. As between Beneficiary and Trustor, for purposes of California Code of Civil Procedure Section 726.5, Trustor shall have the burden of proving that Trustor or any related party (or any affiliate or agent of Trustor or any related party) did not cause or contribute to, and was not in any way negligent in permitting, any release or threatened release of the Hazardous Substance.
v. Trustor acknowledges and agrees that notwithstanding any term or provision contained herein or in the Loan Documents, the Environmental Costs and all judgments and awards entered against Trustor pursuant to Section 24(f)(iv) above shall be exceptions to any nonrecourse or exculpatory provision of the Loan Documents, and Trustor shall be fully and personally liable for the Environmental Costs and such judgments and awards and such liability shall not be limited to the original principal amount of the obligations secured by this Deed of Trust, and Trustor's obligations shall survive the foreclosure, deed in lieu of foreclosure, release, reconveyance, or any other transfer of the Property or this Deed of Trust.
g. Trustor hereby agrees to indemnify, defend and hold harmless Beneficiary from and against any and all Environmental Losses.
[signature page to follow]
Deed of Trust Pg. 13
IN WITNESS THEREOF, Borrower has executed this Deed of Trust on the day and year first above written.

BORROWER:

COMMUNITY SYSTEM SOLUTIONS
By: __________________________
Michael Bahr, CEO
Deed of Trust Pg. 14
A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
) SS.

COUNTY OF _________________ )
On , before me, , a Notary
Public in and for said State, personally appeared, ,
who proved to me the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity(ies) upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal. [SEAL]
Signature of Notary Public
Deed of Trust Pg. 15

EXHIBIT A

LEGAL DESCRIPTION OF THE PROPERTY
Real property in the City of Crescent City, County of Del Norte, State of California, described as follows:

Affordable Housing Covenant Pg. 1
Exhibit E: Affordable Housing Covenant

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of Crescent City
377 J Street
Crescent City, CA 95531
Attn: City Clerk
TAX STATEMENTS: NO CHANGE
APN 118-120-025-000 Exempt from Recording Fees Per Gov. Code Section 27383 Exempt from SB 2 Fees per Gov. Code § 27388.1(a)(2)(D)

AFFORDABLE HOUSING COVENANT
For valuable consideration, the receipt of which is hereby acknowledged, CITY OF CRESCENT CITY ("City"), a California municipal corporation, hereby agrees with COMMUNITY SYSTEM SOLUTIONS, a California nonprofit corporation ("Developer"), with respect to that certain parcel of real property (the "Site") legally described on Exhibit A, that the Site and the residential units to be constructed thereon (the "Housing Project") will be subject to the conditions, restrictions, reservations and rights of City specified below.

This Covenant is entered into in connection with a promissory note executed by Developer in favor of the City in the amount of $1,032,371.43 (the “Note”) in connection with the award of Permanent Local Housing Allocation (“PLHA”) funds and Prohousing Incentive Program (“PIP”) funds from the California Department of Housing and Community Development (“HCD”) to the City and the loan of PLHA/PIP funds from the City to the Developer. The Note is secured by a deed of trust recorded against the Site.

1. USE OF THE SITE. The Developer hereby covenants and agrees, for itself, its lessees, successors and assigns, as follows:

A. Purpose. The City and Developer have executed this Agreement to assure the Site meets the affordability requirements. Developer must create 4 units reserved for moderateincome households (defined as those households earning up to 120% of the area median income adjusted for household size and set annually by HCD) and remains affordable for the longest feasible period, but for not for fewer than fifty-five (55) years from the date of certificate of occupancy. This Agreement is also required by HCD to restrict the rents and occupancy of the Housing Project in accordance with the requirements of the PLHA and PIP programs.

Affordable Housing Covenant Pg. 2
B. Rent and Income Restrictions. Four of the residential units to be developed on the Site (the "Affordable Units") shall be rented to moderate-income households and whose income does not exceed the limits set forth below ("Eligible Households"):
(1) All of the Affordable Units constructed on the Site shall be available to moderate-income households whose income does not exceed 120% of the area median income (adjusted for household size). These Affordable Units shall be available at rents that do not exceed 30% of 120% of the AMI, as adjusted by household size, less a utility allowance.
(2) The applicable income limits and Affordable Rents for Affordable Units, including utility allowances, or as determined by HUD with respect to any subsidy contract of HUD or the Housing Authority of the City on the Project.

It shall be the obligation of Developer to annually obtain from City or any other applicable source the applicable income limits and Affordable Rents, as they may be adjusted from time to time.

C. Tenant Qualification for Rental Units.
(1) Developer agrees to rent the Affordable Units solely to Income Eligible Households, at not more than the applicable Affordable Rent. (2) Developer must take reasonable steps to certify the income level of prospective occupants of an Affordable Unit, at the time of the initial rental, and annually thereafter. Developer may request an income certification from the proposed occupant of the Affordable Unit in one or more of the following methods:
(a) Obtain two (2) most recent paycheck stubs from all proposed occupants;
(b) Obtain a true copy of income tax returns from all proposed occupants for the most recent tax year in which a return was filed; (c) Obtain an income verification certification from the employer of all proposed occupants;
(d) Obtain an income verification certification from the Social Security Administration and/or the California Department of Social Services if any proposed occupants receive assistance from such agencies; or (e) Obtain an alternate form of income verification acceptable to the City Representative or under applicable HUD rules and requirements for any subsidy agreement for the Project.
(3) Developer shall apply the same rental terms and conditions to tenants of Affordable Units as are applied to all other tenants, except as otherwise required to comply with this Agreement (i.e., rent levels, occupancy restrictions and income requirements) and/or government subsidy programs.

Discrimination based on subsidies received by the prospective tenant is prohibited.

D. Changes in Tenant Income.
(1) If the income of a tenant occupying an Affordable Unit decreases below the category for which the tenant originally qualified, the tenant shall continue to Affordable Housing Covenant Pg. 3
have the right to reside in the Affordable Unit, provided the tenant pays the rent and performs his other obligations to Developer.
(2) If the income of a tenant occupying an Affordable Unit increases above the category for which the tenant originally qualified, the tenant may remain in the unit (the “Original Unit”) at the tenant’s new applicable Affordable Rent, as long as the next vacant unit is re-designated for the income category previously applicable to the Original Unit.
(3) Units may be re-designated per Section 1.D(2) of this Agreement by entering into and recording an amendment to this Agreement.
(4) So long as the Developer complies with the procedures set forth in this Section 1.D, Developer shall not be in violation of this Agreement due to a tenant’s income eventually exceeding the income limit for the Affordable Unit occupied by that tenant.

E. Utilization of Affordable Rental Units. All Affordable Units required by this Agreement shall be leased or rented and fully utilized in accordance with this Agreement; no Affordable Unit shall be withdrawn from the market or otherwise held vacant.

F. No Sublease. A tenant occupying an Affordable Unit may not sublet the unit without the written permission of both Developer and City, which may be withheld in its sole and absolute discretion. The City shall not grant permission to lease, rent, or sublet the unit if it finds that the prospective tenant or occupant is not an Income Eligible Household. Any individual who subleases an Affordable Unit in violation of the provisions of this Agreement shall be required to forfeit to City all monetary amounts so obtained.

G. Lease Agreement. The form of lease agreement between Developer or its agent and the tenant of any Affordable Unit shall include provisions providing for the implementation of Section 1.D of this Agreement. The City may request in writing to the Developer the current form of lease agreement utilized by the Developer for determination of compliance with the provisions under this Agreement. If the City has not approved compliance or responded within 10 business days of receipt of the form of lease agreement, the Developer shall submit a written reminder, and if the City does not confirm compliance or respond to such reminder within an additional 10 business days, then the form of lease agreement shall be deemed approved and confirmed.

Notwithstanding anything to the contrary herein, any approval or deemed approval of the lease agreement by the City shall not relieve the Developer of any of its obligations hereunder.

H. Maintenance of Units. Developer shall: (a) maintain and operate all units on the Property so as to provide decent, safe and sanitary housing consistent with federal housing quality standards; (b) make any required repairs or provide any required cleanup; and (c) provide the Affordable Units with the same levels of services and maintenance as are provided to the other dwelling units on the Property.

I. Affordable Unit Compliance Inspection and Certification. The City may inspect the Affordable Units (subject to the rights of tenant) and any documents or records relating Affordable Housing Covenant Pg. 4
thereto, at any reasonable time upon at least 48 hours prior written notice to determine Developer’s compliance with this Agreement. Moreover, upon written request from the City, the Developer agrees to submit an annual report (the “Annual Report”) certifying that all Affordable Units are being leased or rented in compliance with this Agreement no more than once per calendar year period during the term of this Agreement.

J. Reporting Requirements. Annual reports and annual income recertifications must be submitted to the City. The reports, at a minimum, shall include:
(1) The number of persons per unit
(2) Tenant name
(3) Initial occupancy date
(4) Rent paid per month
(5) Gross income per year
(6) Percent of rent paid in relation to income.

Annual income recertifications shall also contain those documents used to certify eligibility. City may, from time to time during the term of this Covenant, request additional or different information and Developer shall promptly supply such information in the reports required hereunder. Developer shall maintain all necessary books and records, including property, personal and financial records, in accordance with requirements prescribed by City with respect to all matters covered by this Covenant. Developer, at such time and in such forms as City may require, shall furnish to City statements, records, reports, data and information pertaining to matters covered by this Covenant. Upon request for examination by City, Developer, at any time during normal business hours, shall make available all of its records with respect to all matters covered by this Covenant. Developer shall permit City to audit, examine and make excerpts or transcripts from these records.

2. NO TRANSFER. The Developer shall not sell, transfer, convey, encumber, assign or lease the whole or any part of the Site without the prior approval of the City and HCD, which shall not be unreasonably withheld. Developer shall request approval by written notice at least ninety (90) days prior to any proposed transfer. This prohibition shall not be deemed to (i) prevent the granting of easements or permits to facilitate the development of the Site, (ii) prohibit or restrict the rental or leasing of units when the construction of the Housing Project is completed, or (iii) prohibit or restrict the grant and exercise of an option and/or right of first refusal to purchase the Site given by Developer to a general partner of Developer in accordance with the Developer’s Partnership Agreement on or around the expiration of the tax credit compliance period which shall not require the prior written approval of Developer, but Developer shall give notice of such transfer to City.

3. MANAGEMENT. During the term of this Covenant, Developer shall promptly notify the City in the event there is any change in the property management company managing the Housing Project. The property management agreement shall name the City as a third-party beneficiary permitting the City the right to enforce the Agreement. Developer shall submit a Affordable Housing Covenant Pg. 5
copy of such agreement to the City, provided the City shall not have the right to approve or disapprove such agreement except to ensure compliance of such agreement with the provisions of this paragraph.

4. NO DISCRIMINATION. The Developer covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, veteran or military status, or genetic information in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Site, nor shall the Developer itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the Site.

5. NONDISCRIMINATION AND NONSEGREGATION CLAUSES. All deeds, leases or contracts made relative to the Site, the improvements thereon or any part thereof, shall contain or be subject to substantially the following nondiscrimination and nonsegregation clauses:

All deeds, leases or contracts made relative to the Site, the improvements thereon or any part thereof shall contain or be subject to substantially the following nondiscrimination clauses:
(1) In deeds: (a) "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises herein conveyed, nor shall the grantee, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the premises herein conveyed. The foregoing covenants shall run with the land."
(b) Notwithstanding paragraph (a), with respect to familial status, paragraph (a) shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in paragraph (a) shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11 and 799.5 of the Civil Code, relating to housing for senior citizens.

Subdivisions (d) of Section 51 and Section 1360 of the Civil Code and Affordable Housing Covenant Pg. 6
subdivision (n), (o), and (p) of Section 12955 of the Government Code shall apply to paragraph (a).
(2) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions:
(a) "That there shall be no discrimination against or segregation of any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of
subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises herein leased, nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the premises herein leased."
(b) Notwithstanding paragraph (a), with respect to familial status, paragraph (a) shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status,
nothing in paragraph (a) shall be construed to affect Sections

51.2, 51.3, 51.4, 51.10, 51.11 and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivisions (d) of Section 51 and Section 1360 of the Civil Code and
subdivision (n), (o), and (p) of Section 12955 of the
Government Code shall apply to paragraph (a).
(3) In contracts: "There shall be no discrimination against or segregation of any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the premises."

6. NO IMPAIRMENT OF LIEN. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Covenant shall defeat or render invalid or in any way impair the lien or charge of any mortgage, deed of trust or other financing or security instrument; provided, however, that any successor of Developer to the Site shall be bound by Affordable Housing Covenant Pg. 7
such covenants, conditions, restrictions, limitations and provisions, whether such successor's title was acquired by foreclosure, deed in lieu of foreclosure, trustee's sale or otherwise.

7. DURATION. The covenants contained in Section 1 of this Covenant shall be deemed to run with the land and shall remain in effect for not less than fifty-five (55) years following the date the certificate of occupancy is issued for the Housing Project. The covenants against discrimination contained in Sections 4 and 5 of this Covenant shall be deemed to run with the land and shall remain in effect in perpetuity.

8. SUCCESSORS AND ASSIGNS. The covenants contained in this Covenant shall be binding for the benefit of the City and its respective successors and assigns, third party beneficiaries, and any successor in interest to the Site or any part thereof, and such covenants shall run in favor of the City and such aforementioned parties for the entire period during which such covenants shall be in force and effect, without regard to whether the City is or remains an Developer of any land or interest therein to which such covenants relate. The City, and such aforementioned parties, in the event of any breach of any such covenants, shall have the right to exercise all of the rights and remedies, and to maintain any actions at law or suits in equity or other proper proceedings to enforce the curing of such breach. The covenants contained in this Covenant shall be for the benefit of and shall be enforceable only by the City, and its respective successors and assigns, third party beneficiaries, and such aforementioned parties.

9. NOTICES. Any notices or reports required by this Agreement shall be deemed received on: (i) the day of delivery if delivered by hand, facsimile or overnight courier service during Consultant’s and City’s regular business hours; or (ii) on the third business day following deposit in the United States mail if delivered by mail, postage prepaid, to the addresses listed below:

To City:

City of Crescent City
377 J Street
Crescent City, CA 95531
Attn: City Manager
To Developer:

Community System Solutions
7806 Juarez Way
Fair Oaks, CA 95628
Attn: Michael Bahr, CEO
The parties may subsequently change addresses by providing written notice of the change in address to the other parties in accordance with this Section.

Affordable Housing Covenant Pg. 8

10. GOVERNING LAW. The laws of the State of California shall govern this Agreement. Any legal action brought under this Agreement must be instituted in the Superior Court of the County of Del Norte, State of California or in Federal District Court in the Northern District of California.

11. DEFAULT. Failure or delay by either party to perform any term or provision of this Agreement, which is not cured within thirty (30) days after receipt of notice from the other party, constitutes a default under this Agreement. The party who so fails or delays must immediately commence to cure, correct or remedy such failure or delay, and shall complete such cure, correction or remedy with due diligence. The injured party shall give written notice of default to the party in default specifying the default complained of by the injured party.

Except as required to protect against further damages, the injured party may not initiate proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default.

12. REMEDIES. Upon a violation by Developer of its obligations and covenants in this Agreement, after providing the requisite notice and cure period as set forth in Section 11 hereof, City may institute any appropriate legal actions or proceedings necessary and seek any remedies available at law or in equity to ensure compliance with this Agreement, including but not limited to actions for specific performance, injunctive relief or damages. Any provision hereunder providing for a specific remedy shall not be deemed a waiver of any other right or remedy available to the City.

13. ATTORNEY’S FEES. In any action brought to declare the rights granted herein or to enforce or to interpret any of the terms of this Agreement, the prevailing party shall be entitled to an award of reasonable attorney’s fees in an amount determined by the court.

14. COSTS AND EXPENSES. The Developer shall pay all costs and expenses incurred to comply with its obligations arising from this Agreement and incurred by the City or any of its departments and arising from this Agreement, including the review of any requests for approvals made by the Developer.

15. NON-WAIVER. Failure to exercise any right City may have or be entitled to, in the event of default hereunder shall not constitute a waiver of such right or any other right in the event of a subsequent default.

16. FURTHER ASSURANCES AND RECORDATION. Developer shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form and do such further acts as may be necessary, desirable or proper as City shall from Affordable Housing Covenant Pg. 9
time to time finds necessary or appropriate to effectuate its purpose in entering into this Agreement.

17. ENTIRE AGREEMENT. The text herein and attachments, constitutes the entire agreement between the parties with respect to the matter described herein. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that any other agreement, statement or promise not contained in this Agreement shall not be valid or binding.

18. AMENDMENT OF THIS AGREEMENT. This Agreement may be amended from time to time in whole or in part by mutual consent of the original parties or their successors in interest, in accordance with this Agreement, the Crescent City Municipal Code and California law.

19. TERM OF AGREEMENT. The covenants and restrictions contained in the Agreement shall remain in effect for fifty-five (55) years from the date of Certificate of Occupancy issuance for the Housing Project, including all of the Affordable Units.

20. SEVERABILITY. If any article, section, subsection, term or provision of this Agreement, or the application thereof to any party or circumstance, shall, to any extent, be invalid or unenforceable, the remainder of the article, section, subsection, term or provision of this Agreement, or the application of the same to parties or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby, and each remaining article, section, subsection, term or provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.
[SIGNATURES FOLLOW ON NEXT PAGE]
Affordable Housing Covenant Pg. 10
IN WITNESS WHEREOF, the City and Developer have caused this instrument to be executed on their behalf by their respective officers thereunto duly authorized, this ____day of ______________ 20_____.

CITY:

CITY OF CRESCENT CITY, a municipal
corporation of the State of California
By:

Eric Wier, City Manager
Approved as to Form:

By:

Martha D. Rice, City Attorney
Affordable Housing Covenant Pg. 11
DEVELOPER:

COMMUNITY SYSTEM SOLUTIONS
By: ______________________________________
Michael Bahr, CEO
Affordable Housing Covenant Pg. 12
STATE OF CALIFORNIA }
COUNTY OF DEL NORTE }
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

On _________________________ before me, ______________________________________, a Notary Public, personally appeared ____________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal. [seal]
__________________________________
Signature
Affordable Housing Covenant Pg. 13
STATE OF CALIFORNIA }
COUNTY OF DEL NORTE }
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

On _________________________ before me, ______________________________________, a Notary Public, personally appeared ____________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal. [seal]
__________________________________
Signature
Affordable Housing Covenant Pg. 14

EXHIBIT A
Legal Description of the Site
Real property in the City of Crescent City, County of Del Norte, State of California, described as follows:

CITY COUNCIL AGENDA REPORT
TO: MAYOR WRIGHT AND MEMBERS OF THE CITY COUNCIL
FROM: ERIC WIER, CITY MANAGER
BY: SARA BARBOUR, HUMAN RESOURCES MANAGER

BILL GILLESPIE, INTERIM FIRE CHIEF
DATE: MAY 4, 2026
SUBJECT: FIRE CHIEF RECRUITMENT –JOB DESCRIPTION, RECRUITMENT

FLYER AND RELOCATION ASSISTANCE UPDATES
______________________________________________________________________

RECOMMENDATION
• Hear staff report
• Technical questions from the Council
• Receive public comment
• Further Council discussion
• Approve the updated Fire Chief Job Description and Recruitment Flyer • Authorize the City Manager to offer a relocation assistance benefit of up to $10,000 for the Fire Chief position, subject to final terms and conditions in the employment agreement.

BACKGROUND
The position of Fire Chief has been vacant since the departure of Fire Chief Carey on December 27, 2025. Since December 29, 2025, the role has been filled on a part time basis by Interim Fire Chief Gillespie. A full time, permanent Fire Chief is necessary for long term leadership, administration and support of the fire department. The last recruitment for the Fire Chief position was conducted in 2022. Since that time, the department has experienced operational changes and evolving service demands, including expanded coordination between the City and District and an increased emphasis on administrative oversight, training, and fire prevention functions.

The Fire Chief Job Description has been amended to reflect the current operational, administrative, and leadership needs of Crescent City Fire & Rescue and the Crescent Fire Protection District. The position serves as a contract management role under the direction of the City Manager and is responsible for overseeing all fire department operations, including fire suppression, emergency medical services, fire prevention, and administrative functions for both the City and District.

FIRE CHIEF RECRUITMENT
MAY 4, 2026
2 As the department continues to evolve as a combination agency (volunteer and career fire personnel) serving both City and District responsibilities, it is important that the job description and recruitment materials accurately reflect the expectations, duties, and qualifications necessary for effective leadership. In conjunction with the updated job description, staff have developed a two-page recruitment flyer to support outreach efforts and attract qualified candidates for the Fire Chief position.

ITEM ANALYSIS
The updated job description includes several key revisions to better align with current and future operational needs:

Clarification of Roles and Responsibilities:
• Emphasizes the Fire Chief’s role in overseeing both City and District operations under a contractual service model
• Reinforces responsibility for coordination with partner agencies, regional stakeholders, and governing bodies
• Clarifies that the Fire Chief serves as Fire Marshal or designee, responsible for fire prevention, code enforcement, inspections, and plan review activities Operational and Administrative Updates:
• Updates language related to leadership, training, and personnel management • Clarifies expectations for reporting, budgeting, and strategic planning for both City and District functions
• Improves consistency and readability throughout the document Certification Requirements Update:
• Requires Fire Inspector 1 or Plans Examiner certification within 24 months of hire, with the alternate certification to be obtained within 48 months, subject to course availability and department needs
• Maintains existing requirements for Firefighter I, Company Officer, and EMS certification
Recruitment Flyer:

The proposed two-page recruitment flyer highlights key elements of the position, including minimum qualifications, desirable experience, department structure, and community attributes. The flyer is designed to support recruitment efforts by providing a clear and

FIRE CHIEF RECRUITMENT
MAY 4, 2026
3 visually engaging summary of the opportunity while directing interested candidates to additional materials.

Relocation Assistance:

To support recruitment efforts and attract qualified candidates, staff is recommending the inclusion of a relocation assistance benefit of up to $10,000. This benefit is intended to offset moving and relocation-related expenses for the selected candidate. The cost of this benefit would be shared equally between the Crescent Fire Protection District and the City of Crescent City and administered in accordance with the terms outlined in the final employment agreement.

On Tuesday, April 28, 2026, the Crescent Fire Protection District Board held a special meeting to review the updated Fire Chief Job Description, Fire Chief Recruitment Flyer, and the request to add a relocation benefit of up to $10,000 for the Fire Chief recruitment process. The Board approved the documents and supported the relocation benefit, with the request that the relocation benefit be part of the Fire Chief employment contract as a reimbursement or payment of moving costs with approval of submitted invoices and/or receipts.

FISCAL ANALYSIS
The proposed relocation assistance benefit of up to $10,000 will be incorporated into the Fire Chief employment agreement. Costs will be shared equally between the City of Crescent City and the Crescent Fire Protection District, consistent with the existing costsharing structure. Funding will be included in the Fire Department operating budget.

Actual costs will be dependent on candidate selection and utilization of the benefit.

STRATEGIC PLAN ANALYSIS
This item is consistent with the following strategic plan goals:
• Goal 1: Support Quality Services, Community Safety, and Health to Enhance the Quality of Life and Experience of Our Resident and Visitors o C. Empower and utilize Police, Fire, and Public Works departments to make Crescent City one of the safest cities in the United States • Goal 3: Obtain the Highest Levels of Organizational Excellence o D. Seek methods to create efficiencies and add additional value without compromising safety or performance

ATTACHMENTS

1. Updated Fire Chief Job Description

2. Fire Chief Recruitment Flyer
FIRE- Fire Chief, rev. 03-2026
City of Crescent City
Classification: Fire Chief EEO Classification:1
Employee Association: None- contracted position FLSA Status: Exempt __________________________________________________________________ DEFINITION: This is a contract management position. Under administrative direction of the City Manager, the Fire Chief plans, organizes, directs and administers all activities and operations of the Crescent City Volunteer Fire Department and other neighboring fire districts or agencies which have contracted for services including Crescent Fire Protection District. Ensures that the department incorporates up-to-date and efficient fire prevention, fire suppression, hazardous incident mitigation, emergency medical response technologies, and emergency preparedness into its procedures, equipment and methods.

This classification may be designated as either part-time or full-time depending upon the existence of any agreement for fire chief services which may be in effect with other fire districts or agencies.

For purposes of this classification, references to the “City” mean the City of Crescent City as the employing agency and all related municipal functions, not solely the Crescent City Volunteer Fire Department. References to the “District” mean the Crescent Fire Protection District and its fire service operations conducted under contract with the City.

ESSENTIAL FUNCTIONS / KNOWLEDGE, SKILLS & ABILITIES: The following duties are typical for this classification. Incumbents may perform all or some of the key responsibilities listed below and/or may be required to perform additional or different duties from those set forth below to address business needs and changing business practices. Incumbents may be required to have all or some of the specialized knowledge, skills, and abilities listed. Management reserves the right to add, modify, change, or rescind the work assignments of different positions and to make reasonable accommodation so that qualified employees can perform the essential functions of the job.

Examples of Essential Job Functions (including but not limited to the following):
• Provides administrative management, leadership, support and motivation to all Fire Department personnel to facilitate the delivery of efficient and effective public safety measures, the maintenance of a positive quality of life for all City and District residents, and to ensure professional standards are maintained by Department personnel at all times.
• Responds to fire, medical and other emergencies and exercises incident management for fire suppression and other emergency activities. Actively participates in department duty coverage assignment.
• Coordinates fire department operations with the activities of other City departments, Crescent Fire Protection District and other public safety agencies; including developing cooperative working relationships and mutual aid agreements.
• Participates in agency meetings, including but not limited to City Council meetings, District Board meetings, department head and staff meetings, emergency planning meetings, budget meetings, County Fire Chiefs Association meetings, fire department association meetings, etc. • Conducts periodic inspections of commercial and public buildings for compliance with applicable fire and life safety codes, and per state mandate, as required.

FIRE- Fire Chief, rev. 03-2026
• Ensures that safety regulations and procedures are followed and proper safety equipment is worn and utilized by fire personnel at the scene of any emergency, and other times where safety and personal protective equipment (PPE) may be required.
• Directs and participates in the development and administration of the department’s budget, including staffing levels, equipment, and supplies; monitors expenditures and ensures fiscal oversight for both the City of Crescent City and the Crescent Fire Protection District. Prepares and updates short- and long-range strategic plans to ensure the department’s contribution to the City and District’s overall plans.
• Prepares and maintains emergency incident and fire reports, including fire investigation reports.

Ensures timely data reporting to state and federal agencies as applicable and required. • Reviews project referrals, construction plans and specifications to determine compliance with fire and life safety codes.
• Prepares comprehensive reports, department materials and correspondence. • Develops, directs, coordinates and communicates the development and implementation of departmental goals, policies, procedures and work standards for the department; establishes within City and Crescent Fire Protection District policy, appropriate service and staffing. Continuously monitors and evaluates the efficiency and effectiveness of service delivery methods and procedures, the distribution of work, support systems and internal reporting relationships. • Evaluates and reviews work for acceptability and conformance with department standards through regular performance evaluations. Plans and administers a comprehensive program of staff development and training in accordance with all requirements within limitations of laws and regulations.
• Performs mandated reporting of fire department activities to state agencies in a timely manner, including submission of incident reports, and state mandated facility inspections. • Assigns and directs firefighting, rescue and disaster control activities. • Supports and leads the delivery of effective, timely, and up-to-date training programs. • Ensures accurate training and incident response records are maintained for all personnel. • Investigates complaints regarding departmental activities and reports findings to the City Manager and District Board as appropriate.
• Coordinates activities with the County Office of Emergency Services functions and other emergency services of the City and District and maintains communication with the City Manager and District Board as necessary.
• Confers with City Manager, District Board and elected officials on planning and implementation of efficient and effective public safety measures designed to meet community expectations and needs. • Has the authority to report to district boards for which the City and District has contracted services to. The Fire Chief may report and facilitate meetings and discussions as necessary. • Cultivates good community relations by appearing before civic, fraternal, and other community groups. This may also include participating on a variety of boards, commissions and professional group meetings; attending a variety of community events and other public relations activities. • Makes regular reports of departmental activities through use of the news media and is a liaison between the general public and the Fire Department to promote goodwill, cooperation and open communication between the department and the community. • Stays abreast of new trends in the fire service and up-to-date on legal issues affecting the fire service, regulatory requirements, court decisions and technological and societal changes that may affect the work of the department.

FIRE- Fire Chief, rev. 03-2026
• Presents staff reports and informational updates from direction of the City Manager. Presents staff reports and informational updates to Crescent Fire Protection District as necessary. • Performs other related work as assigned.
• Serves as Fire Marshal or designee, responsible for fire prevention, code enforcement, inspections, and plan review activities.

Knowledge of:
• Management and supervisory principles and practices to provide effective leadership & supervision, and support effective communication with supervisors, elected officials, subordinates, and others as required. • Servant leadership, employee and coworker empowerment, team building, and principles and practices of employee development.
• Applicable Federal, State and local laws, codes, court decisions and regulations concerning fire and life safety, fire suppression, fire prevention and emergency services administration. • Techniques for dealing with and solving issues and concerns presented by a variety of individuals from various socio-economic, cultural and ethnic backgrounds; often when relations may be confrontational or stressed.
• Principles, practices, and procedures of equipment used in fire suppression, fire prevention, first aid, emergency medical services and hazardous materials response. • Fire science, fire behavior and fire investigation procedures. • Rules and regulations of the fire department, geography of the community, jurisdictional boundaries, location of streets, target hazard buildings and water hydrant systems. • Modern principles, practices and techniques of the leadership and management of a fire agency; • Current personnel practices, personnel law and knowledge of risk management related to the functions of the assigned area.
• Accident investigation and reporting, harassment policies and procedures, personnel injury reporting procedures, progressive discipline practices, California Firefighter Procedural Bill of Rights process, and other applicable information.
• Safety regulations and accepted safety standards as they relate to the work and equipment. • Principles of public and business administration, organization, and budgetary control. • Grants and funding sources for fire and rescue agencies. • Emergency services management and safety training;
• Techniques for providing a high level of customer service to the public, City staff, Crescent Fire Protection District Board Members, and fire department personnel in all forms of communication and correspondence.
• Computers and modern office technologies, iPad, VHF radios, and fire service software in common use.

Ability to:
• Lead by a positive and professional example.
• Motivate and inspire a combination fire department made up of volunteer firefighters, career and administrative staff.
• Successfully complete a medical exam, physical performance assessment and SCBA fit test on an annual basis.
• Plan, direct, supervise and coordinate the operations of the fire department by communicating effectively, and providing leadership and Leader’s Intent to fire department members.

FIRE- Fire Chief, rev. 03-2026
• Develop and administer sound department policies and maintain accurate records. • Establish and maintain positive, cooperative and effective working relationships with public agencies, officials, fire department personnel, and the general public. • Prepare clear, concise and comprehensive written and oral reports, and other required records and documents;
• Analyze and interpret data, statistics and reports.
• Enforce applicable regulations with fairness, firmness and tact; • Interpret codes and regulations;
• Communicate clearly and concisely, orally and in writing to provide a clear direction to others; in person, over the telephone, and through email and other electronic communication methods. • Receive input effectively.
• Think and act quickly and appropriately in emergencies and assess situations and people accurately. • Make decisions based on fire service best practices.
• Handle stressful and possibly hazardous situations both physically and mentally. • Plan and carry out department programs and operations, including training and development, fire prevention and investigation activities.
• Work flexible hours, subject to be called out for emergency incidents and/or duty coverage needs. • Work in extreme weather conditions and hazardous environments, including smoke-filled areas, during all hours of the day and night. Meet physical requirements necessary to safely and effectively perform the assigned duties.

SUPERVISION: This position works under the policy guidance and direction of the City Manager. This position exercises supervision over all department volunteers and career personnel, either directly or indirectly through the Fire Department Chain of Command. When providing Fire Chief services by contract to another fire district or agency this position may take general direction from the contracting district or agency.

WORK LOCATION: Due to emergency response responsibilities, the Fire Chief must reside within the Crescent City Fire District or relocate within the district within 6 months of appointment.

QUALIFICATIONS: Any combination equivalent to experience and education that would provide the required skills, knowledge and abilities may qualify. A typical way to obtain the skills, knowledge and abilities would be:

Education and Experience:
• Completion of a certificate program in fire technology, fire protection engineering or fire science or
• Graduation from an accredited four-year college or university with a degree in fire science, public safety or closely related field.
or
• Any equivalent combination of education, experience and training that provides the required knowledge, skills and abilities.

Experience: Ten (10) or more years of progressively responsible service with a volunteer, combination or career fire department, including a minimum of three (3) years of previous experience as a Battalion Chief or higher level chief officer.

FIRE- Fire Chief, rev. 03-2026
License: Must possess and maintain a valid commercial Class A or Class B driver’s license, or a Class C license with a Firefighter Endorsement (or ability to obtain within 6 months of hire).

Required Certifications: First Aid and CPR Certification; First Responder Certification; Firefighter I Certification; Company Officer Certification (or Fire Officer 2); Fire Inspector 1 or Plans Examiner Certification (or equivalent) required within 24 months of hire. The alternate certification shall be obtained within 48 months of hire, subject to course availability and department needs; California State certification or National Registry certification as an Emergency Medical Technician 1 or Paramedic (or ability to obtain within 24 months of hire).

Highly Desirable: Completion of Chief Officer, or Fire Officer 3, or Fire Marshal, or Fire Investigator certification; Executive Fire Officer Program completion; or Fire Chief certification through the California State Fire Marshal Office or Center for Public Safety Excellence.

PHYSICAL, MENTAL, ENVIRONMENTAL AND COMMUNICATION DEMANDS: Essential duties require the following physical, mental, environmental and communication demands:

Physical: Must possess sufficient mobility with or without reasonable accommodation, to work in a standard office setting and use standard office equipment, including a computer; Finger dexterity is needed to access, enter and retrieve data using a computer keyboard or calculator and to operate fire service equipment. Must possess mobility to work in the field setting and upon emergency scenes, including but not limited to multi-story buildings with stairs, construction sites, up and down hills, along roadways, fields, beaches, and other locations as necessary. Ability to frequently bend, stoop, kneel, reach, stand and climb to perform work and inspect work sites. Must possess the ability to lift, carry, push, and pull materials in excess of 100 pounds and objects necessary to perform job functions. Must have the ability to operate a motor vehicle and wear/use a selfcontained breathing apparatus and required firefighter personal protective equipment (PPE).

Mental: Must possess the ability to perform a variety of highly responsible, complex and difficult duties as found in emergency service response work, using good discretion and good independent judgment; must have good conflict resolution skills and the ability to respond quickly in high stress situations.

Vision: Must maintain sufficient visual acuity with or without reasonable accommodation, corrected or noncorrected, far and near, depth, perception, field of vision, color vision and night vision to obtain impressions of shape, size, distance, motion, color and other characteristics of objects. Must be able to read the English language, read reports, data sheets, meeting agendas and agenda summaries, budgets, and mobile and portable VHF radio displays to identify channels.

Hearing: Must maintain sufficient hearing clarity with or without reasonable accommodation, corrected or noncorrected, of hearing within speech frequencies to maintain two-way communications in person, on the telephone and by radio with other firefighters and the public.

Speech: Must maintain sufficient speech clarity and the ability to communicate verbally in a clear and concise manner with or without reasonable accommodation, with other firefighters and the public. Must be able to communicate via telephone, cell phone, and portable and mobile radios.

Writing: Sufficient to prepare a variety of complex reports, personnel, and administrative documents, correspondence and related documents.

Reading: Sufficient to research, understand, comprehend and interpret laws, regulations, policies, procedures and processes, as well as other specific material related to the position.

FIRE- Fire Chief, rev. 03-2026
While performing duties, the employee is regularly required to use written and oral communication skills; analyze community service, budget and technical reports; interpret and evaluate staff reports; know laws, regulations and codes; observe performance and evaluate staff; problem solve community service issues; remember personnel rules, legal and code requirements; and explain and interpret codes, policies and procedures, interact with City management, other governmental officials, contractors, vendors, employees and the public.

ENVIRONMENTAL ELEMENTS: Employees work indoors and outdoors, and are exposed to loud noise levels, cold and hot temperatures, inclement weather conditions, vibration, confining workspace, chemicals, mechanical and/or electrical hazards, and hazardous physical substances and fumes. Duties may be performed in adverse environmental conditions, including exposure to intense heat, heavy smoke, dust and fumes. Employees may interact with upset staff and/or public and private representatives in interpreting and enforcing departmental policies and procedures.

WORKING CONDITIONS: Must be willing to work duty coverage and extended shifts or be called back in emergency situations and work with exposure to stressful and difficult circumstances, including exposure to dangerous situations with strong conflict resolution skills.

The City of Crescent City is seeking a dynamic and experienced Fire Chief to lead a combination fire department serving both the City and Crescent Fire Protection District.

Located along California’s northern coastline, Crescent City offers a rare combination of professional opportunity and unmatched natural beauty. From rugged Pacific Ocean views to the towering redwoods of Redwood National and State Parks, this is a place where leadership and lifestyle come together.

LEAD A COMBINATION

DEPARTMENT
Volunteer, career, and admin
personnel

SERVE MULTIPLE

AGENCIES
City & District

COMMAND EMERGENCY

OPERATIONS
Fire, EMS, HazMat &
disaster response

DRIVE STRATEGY &

ACCOUNTABILITY
Budget, planning, and
department performance
Salary Range: $127,961 – $163,321 annually, depending on experience. This range reflects the current salary schedule and will increase by a 3.0% COLA effective July 2026.

Benefits include:
• Retirement through CalPERS
• Medical, dental, and vision coverage
• Paid vacation, sick leave, and holidays
• Professional development opportunities
• Leadership role with meaningful community impact
• *Relocation assistance up to $10,000
Our next Fire Chief will be:
• A visible and engaged leader in the community
• A mentor and team builder who invests in people
• A strategic thinker who can guide long-term
planning
• Comfortable working within a City–District
partnership model
• Adaptable, approachable, and solutions-oriented
• Bachelor’s degree in Fire Science, Public Safety, or a related field (or equivalent combination of education,
experience, and training)
• Minimum ten (10) years of progressively responsible
fire service experience
• At least three (3) years of experience as a Battalion Chief or higher-level officer
• Required certifications:
• Firefighter I
• EMT (or higher)
• Company Officer / Fire Officer II
• CPR / First Aid
• Fire Inspector 1 or Plans Examiner certification (or
equivalent) required within 24 months of hire; the
alternate certification shall be obtained within 48
months, subject to course availability
• Possession of a valid California driver’s license (Class A or Class B, or Class C with Firefighter Endorsement), or the ability to obtain within six (6) months of hire
We are seeking a leader who brings a balance of
operational experience, administrative capability, and
community focus.

The ideal candidate will demonstrate:
• Strong leadership and decision-making skills
• Experience managing budgets, policies, and
personnel
• Commitment to transparency and collaboration
• Ability to build relationships with elected officials, staff, and the public
• Forward-thinking approach to fire service delivery
Recruitment Opens:

Apply By:

Interviews:

Start Date:

RECRUITMENT TIMELINE

MINIMUM QUALIFICATIONS

COMPENSATION & BENEFITS IDEAL CANDIDATE
WHAT WE’RE LOOKING FOR
*Must establish residency within the jurisdiction
within 6 months of appointment
For more information about our area go to:

The City of Crescent City is an Equal Employment Opportunity Employer VisitDelNorteCounty.com

CITY COUNCIL AGENDA REPORT
TO: MAYOR WRIGHT AND MEMBERS OF THE CITY COUNCIL
FROM: ERIC WIER, CITY MANAGER
BY: SARA BARBOUR, HUMAN RESOURCES MANAGER

BILL GILLESPIE, INTERIM FIRE CHIEF
DATE: MAY 4, 2026
SUBJECT: FIRE DEPARTMENT VOLUNTEER STIPEND UPDATES
______________________________________________________________________

RECOMMENDATION
• Hear staff report
• Technical questions from the Council
• Receive public comment
• Further Council discussion
• Approve and adopt Resolution No. 2026-35, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF CRESCENT CITY APPROVING STIPENDS FOR CRESCENT CITY FIRE AND RESCUE VOLUNTEERS EFFECTIVE JULY 1, 2026

BACKGROUND
The City of Crescent City values the service, dedication and professionalism of the men and women serving as volunteer firefighters with Crescent City Fire & Rescue. Through written agreement, the City and the Crescent Fire Protection District utilize a volunteer stipend program to support recruitment, retention, and engagement of volunteer personnel within Crescent City Fire & Rescue. Stipends are a minimal reimbursement to the volunteer meant to offset their expenses to respond to the station for calls and training and acknowledge the time and work they are volunteering to the community.

The current stipend structure has remained largely unchanged for several years and no longer reflects the increasing demands placed on volunteer members. City and department staff have conducted a review of the existing stipend model and developed a proposed update to better align with responsibilities, time commitment, and market conditions.

FIRE DEPARTMENT VOLUNTEER STIPENDS
MAY 4, 2026
2 ITEM ANALYSIS
The proposed stipend adjustments include updates to three primary areas: shift stipends, response stipends, and monthly stipend caps.

All stipends, including shift and response stipends, are included within the monthly cap limits. Additionally, personnel assigned to duty shifts are not eligible to earn response stipends during those assigned shift periods. These adjustments are intended to:
• Improve volunteer recruitment and retention
• Recognize increased training and operational expectations • Maintain competitiveness with comparable agencies

FIRE DEPARTMENT VOLUNTEER STIPENDS
MAY 4, 2026
3 • Provide clearer structure and equity across ranks
On Tuesday, April 28, 2026, the Crescent Fire Protection Board held a special meeting to review the proposed volunteer stipend increase. The Board supported the proposed volunteer stipend increase and approved the rates shown.

FISCAL ANALYSIS
The proposed stipend increases will result in higher overall personnel costs depending on participation levels and utilization of shifts and responses.

Funding Source:
• City line-item budget via the Fire Department operating budget for City portion of increase.
• Crescent Fire Protection District for District share as per the response agreement.

Actual fiscal impact will vary based on:
• Number of volunteers participating in duty and sleeper shifts • Call volume and training activity
Under the agreement between the City and the Crescent Fire Protection District, expenses for volunteer stipends are split based on the annual percentage of calls within the City versus within the District. Staff has estimated the annual increase in stipends to be in the range of $30,000, of which the District is responsible for approximately twothirds. Actual costs will depend on the number and type of stipends paid out.

The proposed stipend adjustments will be incorporated into the FY 2026/2027 budget and reflected under Professional Services provided by the City, consistent with the City– District agreement and County budget coding requirements.

STRATEGIC PLAN ANALYSIS
This item is consistent with the following strategic plan goals:
• Goal 1: Support Quality Services, Community Safety, and Health to Enhance the Quality of Life and Experience of Our Resident and Visitors o C. Empower and utilize Police, Fire, and Public Works departments to make Crescent City one of the safest cities in the United States • Goal 3: Obtain the Highest Levels of Organizational Excellence o D. Seek methods to create efficiencies and add additional value without compromising safety or performance

ATTACHMENTS

1. Draft Resolution No. 2026-35
CITY OF CRESCENT CITY RESOLUTION NO. 2026-35 Page 1
RESOLUTION NO. 2026-35

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY

APPROVING STIPENDS FOR CRESCENT CITY FIRE AND RESCUE VOLUNTEERS EFFECTIVE JULY 1, 2026
WHEREAS, the Crescent City Fire Department and the Crescent Fire Protection District are both served by the same volunteer firefighters’ organization, known as Crescent City Fire and Rescue; and
WHEREAS, both the City and District fire departments are dependent upon the volunteerism of the men and women of our community in order to provide lifesaving and fire-suppression services; and
WHEREAS, Crescent City Fire and Rescue Battalion Chiefs have continued to provide weekly duty officer coverage opposite of the Fire Chief’s schedule, at great demand of their personal time; and
WHEREAS, Crescent Fire & Rescue has instituted a Station Staffing Program, wherein volunteers spend a 12-hour shift at the station ready to respond to calls for service; and WHEREAS, our community as well as the nation has been greatly impacted by rising rates of inflation and soaring gasoline prices; and
WHEREAS, the City Council has determined that an increase to volunteer stipends is warranted.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Crescent City, State of California, that:

1. The foregoing recitals are true and correct.

2. Effective July 1, 2026, the stipends for Crescent City Fire & Rescue Volunteer firefighters are as follows:
12 Hour Shift Stipends** Amount
Battalion Chief - Duty $200
Battalion Chief - Admin $200
Captain - Duty $115
Station Staffing / Training* – Captain $95
Station Staffing / Training*– Engineer $85
Station Staffing / Training*– Apparatus Operator $80
Station Staffing / Training* -- Firefighter $75
*Volunteer travels outside of Del Norte County for training **No response stipends for responses during a 12-hour shift CITY OF CRESCENT CITY RESOLUTION NO. 2026-35 Page 2
Response Stipends Amount
Medical - Non-EMT $11.00
Medical - EMT $16.50
Fire / Training - Firefighter $22.00
Fire / Training – Apparatus Operator / Engineer $25.00
Fire / Training – Captain / Battalion Chief $27.50
ARFF Shift $50.00

3. Effective July 1, 2026, each volunteer will have a maximum monthly cap on stipends, inclusive of both 12-hour shift stipends and response stipends. Upon reaching that amount, no more stipends may be accrued by the volunteer for that month. For ease of administration, the monthly caps will be measured by calendar months. The monthly stipend caps are as follows:

Monthly Stipend Cap Amount
Battalion Chief $3,092
Captain $2,204
Engineer $1,938
Firefighter / Apparatus Operator $1,737

4. If a volunteer that resides outside of Del Norte County travels to Del Norte County to provide Duty Shift Coverage as requested by the Fire Chief, then he or she will be eligible for mileage and per diem reimbursement at then-current IRS rates (in addition to the stipend). Reimbursements do not count toward the monthly stipend cap.

PASSED AND ADOPTED and made effective the same day by the City Council of the City of Crescent City, State of California this 4th day of May 2026, by the following polled vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
__________________________
Isaiah Wright, Mayor
ATTEST:
___________________________
Robin Altman, City Clerk

CITY COUNCIL AGENDA REPORT
TO: MAYOR WRIGHT AND MEMBERS OF THE CITY COUNCIL
FROM: ERIC WIER, CITY MANAGER
BY: RICHARD GRIFFIN, CHIEF OF POLICE
DATE: MAY 4, 2026
SUBJECT: 10-YEAR AXON ENTERPRISES, INC. AGREEMENT
______________________________________________________________________

RECOMMENDATION
• Hear staff report
• Technical questions from the Council
• Receive public comment
• Further Council discussion
• Approve and authorize the City Manager to sign a 10-year contract with Axon Enterprise, Inc. for Body Cameras, Tasers, In-Car Units, Software and Hardware in the Total Amount of $1,099,477.60

BACKGROUND
Currently the Crescent City Police Department has two separate contracts with Axon Enterprises which require multiple invoices due to the time frame of when equipment was added to the contract. The body camera and TASER contract was recently renewed and runs through 2031. The Fleet contract, covering the in-car cameras, is set to expire in early 2028 and currently has three separate invoices that cover a total of 11 vehicles.

Axon recently contacted Chief Griffin with a proposal to switch to a new 10-year contract that will save the city money over the period of the contract and bring all the current contracts and invoices into one contract and invoice per year.

ANALYSIS
Currently the Crescent City Police Department has two separate contracts that total the following:
• Current Annual Spend (TASER & Body Cameras): $59,645.46 • Current Annual Spend (Fleet): $35,063.81
• Total Current Spend: $94,709.27

CCPD AXON AGREEMENT
MAY 4, 2026
2 The proposed contract will renew the Fleet in-car units, consolidate all the current agreements, and keep the first five years of the contract aligned with what we currently have budgeted, with a budgeted increase in years 2031 to 2035.

Cost Breakdown:
• July 1, 2026: $94,065
• July 1, 2027–2030: $94,711 annually
• July 1, 2031–2035: $125,313.54 annually
• Total Investment over the 10-year contract: $1,099,477.60 The contract also comes with the following equipment upgrades included in the contract:

AXON TAP Program (Technology Assurance Plan):
• Full equipment refresh in 2031 with the latest technology at no additional cost • New TASER model in 2031
• New in-car units in 2031 and 2036
• New body cameras at years 2.5, 5, 7.5, and 10
The new contract will also include access to the Axon AI assistant program at no extra cost. Currently this program would allow the officer access to automatically translate speech from over 50 languages to help communicate clearly during traffic stops, calls for service, and other community interactions, all through the body-worn camera.

FINANCIAL IMPACT
If the City were to continue the current contracts and then negotiate new contracts at a later time, the new contract rates would depend on the level of inflation over the next several years. The Axon representative suggested an industry average of 5% to 8% increase per year. Depending on how much the assumed inflation ends up being over the 10 years, staff estimates this proposal would save the City approximately $175,000.

There would be no change in the first five years of the new contract, as the City has currently budgeted for the existing Axon contracts at the same cost. The contract does incur a $30,602 increase per year for the remaining five years of the contract. The contract total is $1,099,477.60.

STRATEGIC PLAN ANALYSIS
Attempting to acquire grant funding through these sources meets the goals and objectives of Goal 1 “Support quality services and community safety to enhance the lives of our citizens and visitors”, Subsection C. “Empower and utilize Police, Fire, and Public Works departments to make Crescent City one of the safest cities in the United States”

ATTACHMENTS

1. AXON Enterprise, Inc. 10-Year Agreement (Quote Q-832791-46134SB)

Q-832791-46134SB
Issued: 04/22/2026
Quote Expiration: 05/22/2026
Estimated Contract Start Date: 08/01/2026
Account Number: 116184
Payment Terms: N30
Mode of Delivery: AUTO-GND
Credit/Debit Amount: $0.00

SHIP TO BILL TO SALES REPRESENTATIVE PRIMARY CONTACT
Crescent City Police Dept. - CA
686 G St
Crescent City,
CA
95531-3738
USA
Crescent City Police Dept. - CA
686 G St
Crescent City
CA
95531-3738
USA
Email:

Spencer Brachman
Phone:

Email: [email protected]
Fax:

Robert Griffin
Phone: (215) 794-8089
Email: [email protected]
Fax:

Quote Summary Discount Summary
Program Length 120 Months Average Savings Per Year $21,805.90 TOTAL COST $1,073,173.20
ESTIMATED TOTAL W/ TAX $1,099,477.60 TOTAL SAVINGS $218,059.03 Axon Enterprise, Inc.
17800 N 85th St
Scottsdale, Arizona 85255
United States
VAT: 86-0741227
Domestic:(800) 978-2737
International: +1.800.978.2737

Payment Summary
Date Subtotal Tax Total
Jul 2026 $90,334.92 $3,730.91 $94,065.83
Jul 2027 $92,584.57 $2,126.44 $94,711.01
Jul 2028 $92,584.57 $2,126.44 $94,711.01
Jul 2029 $92,584.57 $2,126.44 $94,711.01
Jul 2030 $92,584.57 $2,126.44 $94,711.01
Jul 2031 $122,500.00 $2,813.54 $125,313.54
Jul 2032 $122,500.00 $2,813.54 $125,313.54
Jul 2033 $122,500.00 $2,813.54 $125,313.54
Jul 2034 $122,500.00 $2,813.54 $125,313.54
Jul 2035 $122,500.00 $2,813.57 $125,313.57
Total $1,073,173.20 $26,304.40 $1,099,477.60

Quote Unbundled Price: $1,272,344.60
Quote List Price: $1,181,402.60
Quote Subtotal: $1,073,173.20
Pricing
All deliverables are detailed in Delivery Schedules section lower in proposal Item Description Qty Term Unbundled List Price Net Price Subtotal Tax Total Program
100553 TRANSFER BALANCE - SOFTWARE AND SERVICES 1 $1.00 $15,630.24 $15,630.24 $0.00 $15,630.24 100552 TRANSFER BALANCE - GOODS 1 $1.00 $33,849.37 $33,849.37 $2,792.57 $36,641.94 HWCNAB4 AB4 CONNECTED HARDWARE BUNDLE 18 120 $0.00 $0.00 $0.00 $0.00 M00047 OFFICER SAFETY PLAN T7 PLUS 18 120 $407.18 $390.20 $355.08 $766,977.59 $18,950.89 $785,928.48 Fleet3ARe Fleet 3 Advanced Renewal 11 60 $230.68 $189.57 $189.57 $125,116.20 $2,280.47 $127,396.67 Fleet3ARe Fleet 3 Advanced Renewal 11 60 $230.68 $189.57 $189.57 $125,116.20 $2,280.47 $127,396.67 A la Carte Hardware
H00002 AB4 Multi Bay Dock Bundle 2 $1,638.90 $0.00 $0.00 $0.00 $0.00 A la Carte Software
102011 AXON AI ASSISTANT 18 120 $36.35 $0.00 $0.00 $0.00 $0.00 ProLicense Pro License Bundle 1 120 $54.52 $54.03 $6,483.60 $0.00 $6,483.60 A la Carte Warranties
73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED
WARRANTY 5 19 $0.00 $0.00 $0.00 $0.00 $0.00
73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED
WARRANTY 6 24 $0.00 $0.00 $0.00 $0.00 $0.00
Total $1,073,173.20 $26,304.40 $1,099,477.60
Delivery Schedule
Hardware
Bundle Item Description QTY Shipping Location Estimated Delivery Date AB4 CONNECTED HARDWARE BUNDLE 100147 AXON BODY 4 - CAMERA - NA US FIRST RESPONDER BLK RAPIDLOCK 18 1 07/01/2026
AB4 CONNECTED HARDWARE BUNDLE 100466 AXON BODY 4 - CABLE - USB-C TO USB-C 20 1 07/01/2026 AB4 CONNECTED HARDWARE BUNDLE 100775 AXON BODY 4 - MAGNETIC DISCONNECT CABLE 20 1 07/01/2026 OFFICER SAFETY PLAN T7 PLUS 100591 AXON TASER - CLEANING KIT 1 1 07/01/2026 OFFICER SAFETY PLAN T7 PLUS 100623 ENHANCED HOOK-AND-LOOP TRAINING (HALT) SUIT (V2) 1 1 07/01/2026 OFFICER SAFETY PLAN T7 PLUS 101886 SIGNAL SENSOR 18 1 07/01/2026 OFFICER SAFETY PLAN T7 PLUS 101889 AXON SIGNAL - BATTERY - CR2032 18 1 07/01/2026 OFFICER SAFETY PLAN T7 PLUS 22175 AXON TASER 7 - CARTRIDGE - LIVE STANDOFF (3.5-DEGREE) NS 90 1 07/01/2026
OFFICER SAFETY PLAN T7 PLUS 22176 AXON TASER 7 - CARTRIDGE - LIVE CLOSE QUART (12- DEGREE) NS 90 1 07/01/2026
OFFICER SAFETY PLAN T7 PLUS 22177 AXON TASER 7 - CARTRIDGE - HALT STANDOFF NS 36 1 07/01/2026 OFFICER SAFETY PLAN T7 PLUS 22178 AXON TASER 7 - CARTRIDGE - HALT CLOSE QUART NS 36 1 07/01/2026 OFFICER SAFETY PLAN T7 PLUS 22179 AXON TASER 7 - CARTRIDGE - INERT STANDOFF (3.5- 18 1 07/01/2026 Page
4 Q-832791-46134SB
Hardware
Bundle Item Description QTY Shipping Location Estimated Delivery Date

DEGREE) NS
OFFICER SAFETY PLAN T7 PLUS 22181 AXON TASER
7- CARTRIDGE- INERT CLOSE QUART (12-
DEGREE) NS 18
1 07/01/2026
OFFICER SAFETY PLAN T7 PLUS 80087 AXON TASER
- TARGET- CONDUCTIVE PROFESSIONAL

RUGGEDIZED
11 07/01/2026
OFFICER SAFETY PLAN T7 PLUS 80090 AXON TASER
- TARGET FRAME- PROFESSIONAL 27.5 INX 75
IN
11 07/01/2026
AB4 Multi Bay Dock Bundle 100206 AXON BODY4-8 BAY DOCK21 08/01/2026 AB4 Multi Bay Dock Bundle 70033 AXON- DOCK WALL MOUNT- BRACKET ASSY21 08/01/2026 AB4 Multi Bay Dock Bundle 71019 AXON BODY- DOCK POWERCORD- NORTH AMERICA21 08/01/2026 OFFICER SAFETY PLAN T7 PLUS 22175 AXON TASER
7- CARTRIDGE- LIVE STANDOFF (3.5-DEGREE)
NS 36
1 07/01/2027
OFFICER SAFETY PLAN T7 PLUS 22176 AXON TASER
7- CARTRIDGE- LIVE CLOSE QUART (12-
DEGREE) NS 36
1 07/01/2027
OFFICER SAFETY PLAN T7 PLUS 22175 AXON TASER
7- CARTRIDGE- LIVE STANDOFF (3.5-DEGREE)
NS 36
1 07/01/2028
OFFICER SAFETY PLAN T7 PLUS 22176 AXON TASER
7- CARTRIDGE- LIVE CLOSE QUART (12-
DEGREE) NS 36
1 07/01/2028
OFFICER SAFETY PLAN T7 PLUS 22177 AXON TASER7- CARTRIDGE- HALT STANDOFF NS 361 07/01/2028 OFFICER SAFETY PLAN T7 PLUS 22178 AXON TASER7- CARTRIDGE- HALT CLOSE QUART NS 361 07/01/2028 OFFICER SAFETY PLAN T7 PLUS 100210 AXON VR- TAP REFRESH1- TABLET11 01/01/2029 OFFICER SAFETY PLAN T7 PLUS 101009 AXON VR- TAP REFRESH1- HANDGUN CONTROLLER11 01/01/2029 OFFICER SAFETY PLAN T7 PLUS 101012 AXON VR- TAP REFRESH1- TASER CONTROLLER11 01/01/2029 OFFICER SAFETY PLAN T7 PLUS 20373 AXON VR- TAP REFRESH1- HEADSET11 01/01/2029 OFFICER SAFETY PLAN T7 PLUS 73309 AXON BODY- TAP REFRESH1- CAMERA 181 01/01/2029 OFFICER SAFETY PLAN T7 PLUS 73689 AXON BODY- TAP REFRESH1- DOCK MULTI BAY31 01/01/2029 OFFICER SAFETY PLAN T7 PLUS 22175 AXON TASER
7- CARTRIDGE- LIVE STANDOFF (3.5-DEGREE)
NS 36
1 07/01/2029
OFFICER SAFETY PLAN T7 PLUS 22176 AXON TASER
7- CARTRIDGE- LIVE CLOSE QUART (12-
DEGREE) NS 36
1 07/01/2029
OFFICER SAFETY PLAN T7 PLUS 22175 AXON TASER
7- CARTRIDGE- LIVE STANDOFF (3.5-DEGREE)
NS 36
1 07/01/2030
OFFICER SAFETY PLAN T7 PLUS 22176 AXON TASER
7- CARTRIDGE- LIVE CLOSE QUART (12-
DEGREE) NS 36
1 07/01/2030
Fleet3 Advanced Renewal 72040 AXON FLEET- TAP REFRESH1-2 CAMERA KIT 111 07/01/2031 OFFICER SAFETY PLAN T7 PLUS 100211 AXON VR- TAP REFRESH2- TABLET11 07/01/2031 OFFICER SAFETY PLAN T7 PLUS 101010 AXON VR- TAP REFRESH2- HANDGUN CONTROLLER11 07/01/2031 OFFICER SAFETY PLAN T7 PLUS 101013 AXON VR- TAP REFRESH2- TASER CONTROLLER11 07/01/2031 OFFICER SAFETY PLAN T7 PLUS 20242 AXON TASER
- CERTIFICATION PROGRAM YEAR 6-10
HARDWARE 18
1 07/01/2031
OFFICER SAFETY PLAN T7 PLUS 20374 AXON VR- TAP REFRESH2- HEADSET11 07/01/2031 OFFICER SAFETY PLAN T7 PLUS 73310 AXON BODY- TAP REFRESH2- CAMERA 181 07/01/2031 OFFICER SAFETY PLAN T7 PLUS 73688 AXON BODY- TAP REFRESH2- DOCK MULTI BAY31 07/01/2031 OFFICER SAFETY PLAN T7 PLUS 100212 AXON VR- TAP REFRESH3- TABLET11 01/01/2034 OFFICER SAFETY PLAN T7 PLUS 101011 AXON VR- TAP REFRESH3- HANDGUN CONTROLLER11 01/01/2034 OFFICER SAFETY PLAN T7 PLUS 101014 AXON VR- TAP REFRESH3- TASER CONTROLLER11 01/01/2034 OFFICER SAFETY PLAN T7 PLUS 20375 AXON VR- TAP REFRESH3- HEADSET11 01/01/2034 OFFICER SAFETY PLAN T7 PLUS 73345 AXON BODY- TAP REFRESH3- CAMERA 181 01/01/2034 OFFICER SAFETY PLAN T7 PLUS 73347 AXON BODY- TAP REFRESH3- DOCK MULTI BAY31 01/01/2034 Fleet3 Advanced Renewal 72040 AXON FLEET- TAP REFRESH1-2 CAMERA KIT 111 07/01/2036 OFFICER SAFETY PLAN T7 PLUS 73346 AXON BODY- TAP REFRESH4- CAMERA 181 07/01/2036 OFFICER SAFETY PLAN T7 PLUS 73348 AXON BODY- TAP REFRESH4- DOCK MULTI BAY31 07/01/2036

Software
Bundle Item Description QTY Estimated Start Date Estimated End Date Fleet 3 Advanced Renewal 80400 AXON EVIDENCE - FLEET VEHICLE LICENSE 11 08/01/2026 07/31/2031 Fleet 3 Advanced Renewal 80401 AXON FLEET 3 - ALPR LICENSE - 1 CAMERA 11 08/01/2026 07/31/2031 Fleet 3 Advanced Renewal 80402 AXON FLEET - LICENSE - REAL-TIME LOCATION, ALERTS, & LIVESTREAM 11 08/01/2026 07/31/2031
Fleet 3 Advanced Renewal 80410 AXON EVIDENCE - STORAGE - FLEET 1 CAMERA UNLIMITED 22 08/01/2026 07/31/2031 OFFICER SAFETY PLAN T7 PLUS 101180 AXON TASER - DATA SCIENCE PROGRAM 18 08/01/2026 07/31/2036 OFFICER SAFETY PLAN T7 PLUS 102610 AXON COMMUNITY LINK 18 08/01/2026 07/31/2036 OFFICER SAFETY PLAN T7 PLUS 20248 AXON TASER - EVIDENCE.COM LICENSE 1 08/01/2026 07/31/2036 OFFICER SAFETY PLAN T7 PLUS 20248 AXON TASER - EVIDENCE.COM LICENSE 18 08/01/2026 07/31/2036 OFFICER SAFETY PLAN T7 PLUS 20370 AXON VR - USER ACCESS - FULL VR 18 08/01/2026 07/31/2036 OFFICER SAFETY PLAN T7 PLUS 73447 AXON BODY - LICENSE - FUSUS LIVESTREAM 18 08/01/2026 07/31/2036 OFFICER SAFETY PLAN T7 PLUS 73478 AXON EVIDENCE - REDACTION ASSISTANT USER LICENSE 18 08/01/2026 07/31/2036 OFFICER SAFETY PLAN T7 PLUS 73638 AXON STANDARDS - LICENSE 18 08/01/2026 07/31/2036 OFFICER SAFETY PLAN T7 PLUS 73682 AXON EVIDENCE - AUTO TAGGING LICENSE 18 08/01/2026 07/31/2036 OFFICER SAFETY PLAN T7 PLUS 73683 AXON EVIDENCE - STORAGE - 10GB A LA CARTE 180 08/01/2026 07/31/2036 OFFICER SAFETY PLAN T7 PLUS 73686 AXON EVIDENCE - STORAGE - UNLIMITED (AXON DEVICE) 18 08/01/2026 07/31/2036 OFFICER SAFETY PLAN T7 PLUS 73739 AXON PERFORMANCE - LICENSE 18 08/01/2026 07/31/2036 OFFICER SAFETY PLAN T7 PLUS 73746 AXON EVIDENCE - ECOM LICENSE - PRO 18 08/01/2026 07/31/2036 Pro License Bundle 73683 AXON EVIDENCE - STORAGE - 10GB A LA CARTE 3 08/01/2026 07/31/2036 Pro License Bundle 73746 AXON EVIDENCE - ECOM LICENSE - PRO 1 08/01/2026 07/31/2036 A la Carte 102011 AXON AI ASSISTANT 18 08/01/2026 07/31/2036 Fleet 3 Advanced Renewal 80400 AXON EVIDENCE - FLEET VEHICLE LICENSE 11 08/01/2031 07/31/2036 Fleet 3 Advanced Renewal 80401 AXON FLEET 3 - ALPR LICENSE - 1 CAMERA 11 08/01/2031 07/31/2036 Fleet 3 Advanced Renewal 80402 AXON FLEET - LICENSE - REAL-TIME LOCATION, ALERTS, & LIVESTREAM 11 08/01/2031 07/31/2036
Fleet 3 Advanced Renewal 80410 AXON EVIDENCE - STORAGE - FLEET 1 CAMERA UNLIMITED 22 08/01/2031 07/31/2036 Services
Bundle Item Description QTY
Fleet 3 Advanced Renewal 73392 AXON FLEET 3 - INSTALLATION - UPGRADE (PER VEHICLE) 11 Fleet 3 Advanced Renewal 73392 AXON FLEET 3 - INSTALLATION - UPGRADE (PER VEHICLE) 11 OFFICER SAFETY PLAN T7 PLUS 101184 AXON INVESTIGATE - TRAINING - OPERATOR AND EXAMINER 1 OFFICER SAFETY PLAN T7 PLUS 101193 AXON TASER - ON DEMAND CERTIFICATION 1 OFFICER SAFETY PLAN T7 PLUS 11642 AXON INVESTIGATE - THIRD PARTY VIDEO SUPPORT 18 OFFICER SAFETY PLAN T7 PLUS 20246 AXON TASER 7 - REPLACEMENT ACCESS PROGRAM - DUTY CARTRIDGE 18 OFFICER SAFETY PLAN T7 PLUS 80190 AXON EVIDENCE - CHANNEL SERVICES 1 Warranties
Bundle Item Description QTY Estimated Start Date Estimated End Date Fleet 3 Advanced Renewal 80495 AXON FLEET 3 - EXT WARRANTY - 2 CAMERA KIT 11 08/01/2026 07/31/2031 OFFICER SAFETY PLAN T7 PLUS 80464 AXON BODY - TAP WARRANTY - CAMERA 18 08/01/2026 07/31/2036 OFFICER SAFETY PLAN T7 PLUS 80465 AXON BODY - TAP WARRANTY - MULTI BAY DOCK 3 08/01/2026 07/31/2036 A la Carte 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 6 08/01/2026 07/31/2028 A la Carte 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 5 08/01/2026 02/29/2028 OFFICER SAFETY PLAN T7 PLUS 101686 AXON SIGNAL - EXT WARRANTY - SIGNAL SENSOR 18 07/01/2027 07/31/2036 Fleet 3 Advanced Renewal 80495 AXON FLEET 3 - EXT WARRANTY - 2 CAMERA KIT 11 08/01/2031 07/31/2036

Shipping Locations
Location Number Street City State Zip Country
1 686 G St Crescent City CA 95531-3738 USA
Payment Details
Jul 2026
Invoice Plan Item Description Qty Subtotal Tax Total
Annual Payment 1 102011 AXON AI ASSISTANT 18 $0.00 $0.00 $0.00 Annual Payment 1 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 6 $0.00 $0.00 $0.00 Annual Payment 1 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 5 $0.00 $0.00 $0.00 Annual Payment 1 Fleet3ARe Fleet 3 Advanced Renewal 11 $4,993.35 $91.01 $5,084.36 Annual Payment 1 Fleet3ARe Fleet 3 Advanced Renewal 11 $4,993.35 $91.01 $5,084.36 Annual Payment 1 H00002 AB4 Multi Bay Dock Bundle 2 $0.00 $0.00 $0.00 Annual Payment 1 HWCNAB4 AB4 CONNECTED HARDWARE BUNDLE 18 $0.00 $0.00 $0.00 Annual Payment 1 M00047 OFFICER SAFETY PLAN T7 PLUS 18 $30,609.85 $756.32 $31,366.17 Annual Payment 1 ProLicense Pro License Bundle 1 $258.76 $0.00 $258.76 Transfer Value 100552 TRANSFER BALANCE - GOODS 1 $33,849.37 $2,792.57 $36,641.94 Transfer Value 100553 TRANSFER BALANCE - SOFTWARE AND SERVICES 1 $15,630.24 $0.00 $15,630.24 Total $90,334.92 $3,730.91 $94,065.83
Aug 2026
Invoice Plan Item Description Qty Subtotal Tax Total
Invoice Upon Fulfillment Fleet3ARe Fleet 3 Advanced Renewal 11 $0.00 $0.00 $0.00 Invoice Upon Fulfillment M00047 OFFICER SAFETY PLAN T7 PLUS 18 $0.00 $0.00 $0.00 Total $0.00 $0.00 $0.00
Jul 2027
Invoice Plan Item Description Qty Subtotal Tax Total
Annual Payment 2 102011 AXON AI ASSISTANT 18 $0.00 $0.00 $0.00 Annual Payment 2 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 6 $0.00 $0.00 $0.00 Annual Payment 2 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 5 $0.00 $0.00 $0.00 Annual Payment 2 Fleet3ARe Fleet 3 Advanced Renewal 11 $11,315.73 $206.25 $11,521.98 Annual Payment 2 Fleet3ARe Fleet 3 Advanced Renewal 11 $11,315.73 $206.25 $11,521.98 Annual Payment 2 H00002 AB4 Multi Bay Dock Bundle 2 $0.00 $0.00 $0.00 Annual Payment 2 HWCNAB4 AB4 CONNECTED HARDWARE BUNDLE 18 $0.00 $0.00 $0.00 Annual Payment 2 M00047 OFFICER SAFETY PLAN T7 PLUS 18 $69,366.72 $1,713.94 $71,080.66 Annual Payment 2 ProLicense Pro License Bundle 1 $586.39 $0.00 $586.39 Total $92,584.57 $2,126.44 $94,711.01
Jul 2028
Invoice Plan Item Description Qty Subtotal Tax Total
Annual Payment 3 102011 AXON AI ASSISTANT 18 $0.00 $0.00 $0.00 Annual Payment 3 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 6 $0.00 $0.00 $0.00 Annual Payment 3 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 5 $0.00 $0.00 $0.00 Annual Payment 3 Fleet3ARe Fleet 3 Advanced Renewal 11 $11,315.73 $206.25 $11,521.98 Annual Payment 3 Fleet3ARe Fleet 3 Advanced Renewal 11 $11,315.73 $206.25 $11,521.98 Page
7 Q-832791-46134SB
Jul 2028
Invoice Plan Item Description Qty Subtotal Tax Total
Annual Payment3 H00002 AB4 Multi Bay Dock Bundle2 $0.00 $0.00 $0.00 Annual Payment3 HWCNAB4 AB4 CONNECTED HARDWARE BUNDLE 18 $0.00 $0.00 $0.00 Annual Payment3 M00047 OFFICER SAFETY PLAN T7 PLUS 18 $69,366.72 $1,713.94 $71,080.66 Annual Payment3 ProLicense Pro License Bundle1 $586.39 $0.00 $586.39 Total $92,584.57 $2,126.44 $94,711.01
Jul 2029
Invoice Plan Item Description Qty Subtotal Tax Total
Annual Payment4 102011 AXON AI ASSISTANT 18 $0.00 $0.00 $0.00 Annual Payment4 73390 AXON FLEET- CRADLEPOINT ROUTER TRANSFERRED WARRANTY5 $0.00 $0.00 $0.00 Annual Payment4 73390 AXON FLEET- CRADLEPOINT ROUTER TRANSFERRED WARRANTY6 $0.00 $0.00 $0.00 Annual Payment4 Fleet3ARe Fleet3 Advanced Renewal 11 $11,315.73 $206.25 $11,521.98 Annual Payment4 Fleet3ARe Fleet3 Advanced Renewal 11 $11,315.73 $206.25 $11,521.98 Annual Payment4 H00002 AB4 Multi Bay Dock Bundle2 $0.00 $0.00 $0.00 Annual Payment4 HWCNAB4 AB4 CONNECTED HARDWARE BUNDLE 18 $0.00 $0.00 $0.00 Annual Payment4 M00047 OFFICER SAFETY PLAN T7 PLUS 18 $69,366.72 $1,713.94 $71,080.66 Annual Payment4 ProLicense Pro License Bundle1 $586.39 $0.00 $586.39 Total $92,584.57 $2,126.44 $94,711.01
Jul 2030
Invoice Plan Item Description Qty Subtotal Tax Total
Annual Payment5 102011 AXON AI ASSISTANT 18 $0.00 $0.00 $0.00 Annual Payment5 73390 AXON FLEET- CRADLEPOINT ROUTER TRANSFERRED WARRANTY5 $0.00 $0.00 $0.00 Annual Payment5 73390 AXON FLEET- CRADLEPOINT ROUTER TRANSFERRED WARRANTY6 $0.00 $0.00 $0.00 Annual Payment5 Fleet3ARe Fleet3 Advanced Renewal 11 $11,315.73 $206.25 $11,521.98 Annual Payment5 Fleet3ARe Fleet3 Advanced Renewal 11 $11,315.73 $206.25 $11,521.98 Annual Payment5 H00002 AB4 Multi Bay Dock Bundle2 $0.00 $0.00 $0.00 Annual Payment5 HWCNAB4 AB4 CONNECTED HARDWARE BUNDLE 18 $0.00 $0.00 $0.00 Annual Payment5 M00047 OFFICER SAFETY PLAN T7 PLUS 18 $69,366.72 $1,713.94 $71,080.66 Annual Payment5 ProLicense Pro License Bundle1 $586.39 $0.00 $586.39 Total $92,584.57 $2,126.44 $94,711.01
Jul 2031
Invoice Plan Item Description Qty Subtotal Tax Total
Annual Payment6 102011 AXON AI ASSISTANT 18 $0.00 $0.00 $0.00 Annual Payment6 73390 AXON FLEET- CRADLEPOINT ROUTER TRANSFERRED WARRANTY5 $0.00 $0.00 $0.00 Annual Payment6 73390 AXON FLEET- CRADLEPOINT ROUTER TRANSFERRED WARRANTY6 $0.00 $0.00 $0.00 Annual Payment6 Fleet3ARe Fleet3 Advanced Renewal 11 $14,972.00 $272.89 $15,244.89 Annual Payment6 Fleet3ARe Fleet3 Advanced Renewal 11 $14,972.00 $272.89 $15,244.89 Annual Payment6 H00002 AB4 Multi Bay Dock Bundle2 $0.00 $0.00 $0.00 Annual Payment6 HWCNAB4 AB4 CONNECTED HARDWARE BUNDLE 18 $0.00 $0.00 $0.00 Annual Payment6 M00047 OFFICER SAFETY PLAN T7 PLUS 18 $91,780.14 $2,267.76 $94,047.90 Annual Payment6 ProLicense Pro License Bundle1 $775.86 $0.00 $775.86 Total $122,500.00 $2,813.54 $125,313.54
Aug 2031
Invoice Plan Item Description Qty Subtotal Tax Total
Invoice Upon Fulfillment Fleet3ARe Fleet3 Advanced Renewal 11 $0.00 $0.00 $0.00 Total $0.00 $0.00 $0.00
Page
8 Q-832791-46134SB
Jul 2032
Invoice Plan Item Description Qty Subtotal Tax Total
Annual Payment7 102011 AXON AI ASSISTANT 18 $0.00 $0.00 $0.00 Annual Payment7 73390 AXON FLEET- CRADLEPOINT ROUTER TRANSFERRED WARRANTY5 $0.00 $0.00 $0.00 Annual Payment7 73390 AXON FLEET- CRADLEPOINT ROUTER TRANSFERRED WARRANTY6 $0.00 $0.00 $0.00 Annual Payment7 Fleet3ARe Fleet3 Advanced Renewal 11 $14,972.00 $272.89 $15,244.89 Annual Payment7 Fleet3ARe Fleet3 Advanced Renewal 11 $14,972.00 $272.89 $15,244.89 Annual Payment7 H00002 AB4 Multi Bay Dock Bundle2 $0.00 $0.00 $0.00 Annual Payment7 HWCNAB4 AB4 CONNECTED HARDWARE BUNDLE 18 $0.00 $0.00 $0.00 Annual Payment7 M00047 OFFICER SAFETY PLAN T7 PLUS 18 $91,780.14 $2,267.76 $94,047.90 Annual Payment7 ProLicense Pro License Bundle1 $775.86 $0.00 $775.86 Total $122,500.00 $2,813.54 $125,313.54
Jul 2033
Invoice Plan Item Description Qty Subtotal Tax Total
Annual Payment8 102011 AXON AI ASSISTANT 18 $0.00 $0.00 $0.00 Annual Payment8 73390 AXON FLEET- CRADLEPOINT ROUTER TRANSFERRED WARRANTY5 $0.00 $0.00 $0.00 Annual Payment8 73390 AXON FLEET- CRADLEPOINT ROUTER TRANSFERRED WARRANTY6 $0.00 $0.00 $0.00 Annual Payment8 Fleet3ARe Fleet3 Advanced Renewal 11 $14,972.00 $272.89 $15,244.89 Annual Payment8 Fleet3ARe Fleet3 Advanced Renewal 11 $14,972.00 $272.89 $15,244.89 Annual Payment8 H00002 AB4 Multi Bay Dock Bundle2 $0.00 $0.00 $0.00 Annual Payment8 HWCNAB4 AB4 CONNECTED HARDWARE BUNDLE 18 $0.00 $0.00 $0.00 Annual Payment8 M00047 OFFICER SAFETY PLAN T7 PLUS 18 $91,780.14 $2,267.76 $94,047.90 Annual Payment8 ProLicense Pro License Bundle1 $775.86 $0.00 $775.86 Total $122,500.00 $2,813.54 $125,313.54
Jul 2034
Invoice Plan Item Description Qty Subtotal Tax Total
Annual Payment9 102011 AXON AI ASSISTANT 18 $0.00 $0.00 $0.00 Annual Payment9 73390 AXON FLEET- CRADLEPOINT ROUTER TRANSFERRED WARRANTY6 $0.00 $0.00 $0.00 Annual Payment9 73390 AXON FLEET- CRADLEPOINT ROUTER TRANSFERRED WARRANTY5 $0.00 $0.00 $0.00 Annual Payment9 Fleet3ARe Fleet3 Advanced Renewal 11 $14,972.00 $272.89 $15,244.89 Annual Payment9 Fleet3ARe Fleet3 Advanced Renewal 11 $14,972.00 $272.89 $15,244.89 Annual Payment9 H00002 AB4 Multi Bay Dock Bundle2 $0.00 $0.00 $0.00 Annual Payment9 HWCNAB4 AB4 CONNECTED HARDWARE BUNDLE 18 $0.00 $0.00 $0.00 Annual Payment9 M00047 OFFICER SAFETY PLAN T7 PLUS 18 $91,780.14 $2,267.76 $94,047.90 Annual Payment9 ProLicense Pro License Bundle1 $775.86 $0.00 $775.86 Total $122,500.00 $2,813.54 $125,313.54
Jul 2035
Invoice Plan Item Description Qty Subtotal Tax Total
Annual Payment 10 102011 AXON AI ASSISTANT 18 $0.00 $0.00 $0.00 Annual Payment 10 73390 AXON FLEET- CRADLEPOINT ROUTER TRANSFERRED WARRANTY6 $0.00 $0.00 $0.00 Annual Payment 10 73390 AXON FLEET- CRADLEPOINT ROUTER TRANSFERRED WARRANTY5 $0.00 $0.00 $0.00 Annual Payment 10 Fleet3ARe Fleet3 Advanced Renewal 11 $14,972.00 $272.90 $15,244.90 Annual Payment 10 Fleet3ARe Fleet3 Advanced Renewal 11 $14,972.00 $272.90 $15,244.90 Annual Payment 10 H00002 AB4 Multi Bay Dock Bundle2 $0.00 $0.00 $0.00 Annual Payment 10 HWCNAB4 AB4 CONNECTED HARDWARE BUNDLE 18 $0.00 $0.00 $0.00 Annual Payment 10 M00047 OFFICER SAFETY PLAN T7 PLUS 18 $91,780.14 $2,267.77 $94,047.91 Annual Payment 10 ProLicense Pro License Bundle1 $775.86 $0.00 $775.86

Jul 2035
Invoice Plan Item Description Qty Subtotal Tax Total
Total $122,500.00 $2,813.57 $125,313.57

Tax is estimated based on rates applicable at date of quote and subject to change at time of invoicing. If a tax exemption certificate should be applied, please submit prior to invoicing.

Standard Terms and Conditions
Axon Enterprise Inc. Sales Terms and Conditions
Axon Master Services and Purchasing Agreement:

This Quote is limited to and conditional upon your acceptance of the provisions set forth herein and Axon’s Master Services and Purchasing Agreement (posted at https://www.axon.com/sales-terms-and-conditions), as well as the attached Statement of Work (SOW) for Axon Fleet and/or Axon Interview Room purchase, if applicable. In the event you and Axon have entered into a prior agreement to govern all future purchases, that agreement shall govern to the extent it includes the products and services being purchased and does not conflict with the Axon Customer Experience Improvement Program Appendix as described below.

ACEIP:

The Axon Customer Experience Improvement Program Appendix, which includes the sharing of de-identified segments of Agency Content with Axon to develop new products and improve your product experience (posted at www.axon.com/legal/sales-terms-and-conditions), is incorporated herein by reference. By signing below, you agree to the terms of the Axon Customer Experience Improvement Program.

Acceptance of Terms:

Any purchase order issued in response to this Quote is subject solely to the above referenced terms and conditions. By signing below, you represent that you are lawfully able to enter into contracts. If you are signing on behalf of an entity (including but not limited to the company, municipality, or government agency for whom you work), you represent to Axon that you have legal authority to bind that entity. If you do not have this authority, please do not sign this Quote.

Exceptions to Standard Terms and Conditions
Agency has existing contract(s) originated via Quote(s):

Q-355762, Q-457260, Q-459311, Q-655832, Q-701402,
Agency is terminating those contracts effective 8/1/2026. Any changes in this date will result in modification of the program value which may result in additional fees or credits due to or from Axon.

The parties agree that Axon is applying a Transfer Balance of $49,479.61 Any credits contained in this quote are contingent upon payment in full of the following amounts:

Outstanding Invoice - INUS419847 - 2/1/2026 - $3,950.04 --------------
Shipment Timing Shipment Variance. Estimated shipment dates are provided for planning purposes only and are not guarantees. Axon may ship hardware before or after the estimated shipment date, and failure to meet an estimated shipment date will not, by itself, constitute a breach, provided Axon uses commercially reasonable efforts to meet estimated shipment dates.
---
Refresh Shipment Timing Technology Assurance Plan (TAP) Refresh Prior to Renewal. For Customers with expiring agreements that include TAP refresh rights, Axon may, in its discretion, ship refresh hardware under the existing contract while renewal or replacement agreements are in progress. Any such shipments will be deemed made under the terms of the existing contract until the new contract is fully executed, after which any applicable updates, fees, or adjustments will apply. ---
Rewrite Estimates Estimated Amounts and Contract Terminations. Any amounts stated as due under existing or terminated contracts — including contract transfer balances carried forward to new or pending contracts — are estimates based on payments received as of the calculation date. These estimates may be adjusted if new contracts are not executed on the anticipated dates or if expected payments are not made.

Rewrite Estimates
Estimated Amounts and Contract Terminations. Any amounts stated as due under existing or terminated contracts — including contract transfer balances carried forward to new or pending contracts — are estimates based on payments received as of the calculation date. These estimates may be adjusted if new contracts are not executed on the anticipated dates or if expected payments are not made.

Refresh Shipment Timing

Technology Assurance Plan (TAP) Refresh Prior to Renewal. For Customers with expiring agreements that include TAP refresh rights, Axon may, in its discretion, ship refresh hardware under the existing contract while renewal or replacement agreements are in progress. Any such shipments will be deemed made under the terms of the existing contract until the new contract is fully executed, after which any applicable updates, fees, or adjustments will apply.

Shipment Timing
Shipment Variance. Estimated shipment dates are provided for planning purposes only and are not guarantees. Axon may ship hardware before or after the estimated shipment date, and failure to meet an estimated shipment date will not, by itself, constitute a breach, provided Axon uses commercially reasonable efforts to meet estimated shipment dates.
\s1\ \d1\
Signature Date Signed
4/22/2026