Dublin City Council
September 3, 2024

2023. Staff continues to work with the developers of the Regional Street Senior Affordable Housing project and the Amador Station project to facilitate funding and development of both projects.

The Alameda County Surplus Property Authority continued to work with the City on the future development of an affordable housing project adjacent to the construction of the new parking garage at the East Dublin Transit Center. The future project can accommodate up to 99 units.

Staff continued to work with Trumark on the affordable housing at the Francis Ranch development. The City Council authorized an affordability plan for the Francis Ranch project off Croak Road and Central Parkway, which will include 77 units of for-rent affordable housing, of which 22 units will be for Sunflower Hill to help meet the needs of the intellectual and developmentally disabled (IDD) community. Additionally, the project will have 50 low-income accessory dwelling units, along with 18 for-sale moderate-income housing units.

The City negotiated the dedication of land for the development of the SCS Property on the east side of Tassajara Road for an affordable housing project, currently anticipated to serve the IDD community. The project, which can accommodate up to 100 units, will be fully integrated with the rest of the project and is consistent with the City Council’s Preferred Plan for the property.

Staff continued to work with Landsea Homes to subdivide The DC Project to create a legal parcel for the affordable housing site. Staff is having ongoing discussion with Sunflower Hill and Eden Housing regarding the Francis Ranch project. Staff is also working with Eden Housing on financing the senior affordable housing project on Regional Street, including a $1 million preconstruction loan from the City.

Objective E: Review the housing market analysis and establish a strategy to meet the “middle market” demand, if needed, to ensure right mix.

This objective has been completed.

Staff completed the analysis of middle-market housing demand and prepared a report outlining the findings and recommendations. The report was provided to the City Council via memorandum in May 2023.

Objective F: Review ownership programs for first-time buyers and explore alternative options.

Staff made progress on amendments to the First Time Homebuyer Loan Program that will broaden the program and ensure compatibility with other loan programs. The City Council will consider this item in summer 2024.

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Strategy 3: Infrastructure Maintenance and Reinvestment Objective A: Use surplus and lump sum funding to increase the City’s internal service funds.

The FY 22-23 and FY 23-24 budgets included a $2 million transfer to the Internal Service Fund (ISF) for facilities preventative maintenance. Additionally, the FY 2024-26 two-year budget was approved on June 4 and included a $2 million annual contribution to the ISF equipment fund and $4.5 million annually for pavement management. The two-year budget also included the strategic use of Internal Service Funds previously set aside to address maintenance and replacement issues through the Capital Improvement Program.

This includes $17.85 million in Internal Service Funding for nine projects over the course of the next Five-Year Capital Improvement Program.

Objective B: Provide on-going condition assessments of aging city facilities and assets.

The City successfully recruited and hired a Maintenance Coordinator, who joined the Dublin team in January 2023. The position is supporting the Maintenance Division in monitoring work on City assets.

The City’s maintenance contractor continued conducting quarterly inspections of parks and facilities to evaluate the condition of equipment and infrastructure to help make informed decisions about repair, replacement, and maintenance schedules. The Parks and Community Services Department Park Monitors assist in providing weekly inspections of City parks and outdoor facilities, which helps deliver a faster response to maintenance needs.

Infrared thermographic electrical inspections were completed to gather electrical equipment condition information at several City buildings. This effort augments the preventive maintenance program by identifying areas with increased risk of equipment and electrical failure.

Condition assessments and inspections of City bridges and large storm drain culverts continued. This effort resulted in recommended maintenance or minor repair of the facilities. Staff began the process of selecting a consultant to provide an assessment of conditions at The Wave, and based on that assessment, will create a maintenance plan for the facility and equipment. Lastly, as a part of the FY 2024- 25 Budget and Five-Year CIP, the City Council approved allocation of funds to allow Staff to begin the condition assessments of various City water features and the City’s three Fire Stations.

Objective C: Explore finance options for long-term pavement management needs.

The City received approval from the Metropolitan Transportation Commission (MTC) for $48,000 in grant funding though the Pavement Management Technical Assistance Program (P-TAP), Round 24. Public Works Staff has begun working with MTC’s consultant to do the pavement condition assessment and prepare for the resulting analysis. Public Works Staff is also working with a pavement engineering consultant to develop recommendations for a multi-year pavement preservation program and a pavement condition index goal.

Staff continues to work with the pavement engineering consultant to evaluate the pavement network and condition, to develop various 155
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strategies for resurfacing and rehabilitation, and to update the City’s StreetSaver program cost estimates. This effort will result in a recommended pavement condition index goal and multi-year pavement preservation program.

Staff included additional funding in the proposed Five-Year CIP to gradually increase the amount of General Fund Revenue required to meet long-term pavement management needs.

Staff continues to work with the pavement engineering consultant on the two-year paving plan and will begin the design in the first quarter of FY 2024-25. Additionally, the new Five-Year CIP includes $4.5 million annually for pavement management, including an estimated $8.8 million total contribution from the General Fund.

Objective D: Explore use of funding mechanisms like community facilities districts for capital and on-going maintenance needs.

Staff is collaborating with the developer of the East Ranch project and City financial consultants to develop a Community Fac ilities District (CFD) for facility infrastructure and a CFD for services (maintenance of public improvements).

The Branaugh property project was approved, including a Development Agreement that requires the developer to cooperate in the formation of a services CFD for maintenance and the facilities CFD for the mitigation of Dublin Boulevard extension.

The Francis Ranch (formerly East Ranch) CFD for facility infrastructure and services (maintenance of public improvements) has started the initial formation process. The City Council approved a CFD for facility infrastructure and services for the Francis Ranch project.

Staff is currently negotiating a Development Agreement for the Righetti property project, which could require the developer to cooperate in the formation of a services CFD for maintenance and the facilities CFD for the mitigation of the Dublin Boulevard extension.

The GH PacVest property project has approved deal terms that could result in the formation of a services CFD for maintenance of public improvements. Staff began negotiating a Development Agreement for the GH PacVest property, which could require the developer to cooperate in the formation of a CFD for maintenance and facilities, including for the mitigation land acquisition for the Dublin Boulevard Extension project.

The DC project is required by the Development Agreement to form a services CFD for maintenance of public improvements. Staff continues to work with them on the formation of the CFD.

Objective E: Continue to implement measures identified in the Climate Action Plan (CAP).

Two Climate Action Plan (CAP) 2030 Reach Codes were adopted as part of the 2022 Building Code: all-electric new construction (Measure EE-1) and electric vehicle charging stations (Measure SM-1) codes.

Consistent with CAP Measure MM-2: Reduce the Embodied Greenhouse Gas Emissions Associated with Building Materials, a low carbon 156
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concrete specification has been implemented and installed in one location with more locations planned.

Staff continued working on CAP Measure SM-2: Develop an Electric Vehicle Infrastructure Plan. Staff also initiated an update on the Municipal Fleet Electrification Plan, consistent with CAP 2030 Measure ML-3: Electrify Municipal Vehicle Fleet and Equipment.

Additionally, work on a potential low carbon concrete building code continues, consistent with Measure MM-2: Reduce the Embodied Greenhouse Gas Emissions Associated with Building Materials.

In September, the City Council authorized the City Manager to purchase electric fleet vehicles, which helps meet CAP Measure ML-3:

Electrify Municipal Vehicle Fleet and Equipment. Five electric vehicles, three Ford Lightning trucks, and two Chevrolet Bolt EUVs were purchased to replace internal combustion engine vehicles within the City fleet.

Staff is preparing amendments to Dublin Green Building Ordinance for consideration by the City Council, to include requirements to use low carbon concrete.

The City received MTC’s Local Public Fleet Electrification Planning Technical Assistance grant. The grant provides local public agencies with consultant assistance for fleet electrification planning, including assessing fleets, fueling and charging needs, costs and transition actions. Work with MTC’s consultant team is scheduled to start in fall 2024.

Staff and the City’s CivicSpark Fellow worked with a consultant to develop the Dublin Climate Challenge, which is an online platform to allow individuals, households, and businesses learn about and commit to various sustainable actions to lower their climate change footprint. Staff will present the Dublin Climate Challenge to City Council in July.

Staff started development of an existing building electrification plan, as described in CAP 2030 Measure EE-4: Develop an Existing Building Electrification Plan. Components of the plan will include an inventory of existing building types, potential technologies that could facilitate electrification, the pros/cons of such technology, and estimated costs of implementation.

Strategy 4: Organizational Health
Objective A: Use existing reserves to address the unfunded Dougherty Regional Fire Authority (DRFA) pension liability.

The FY22-23 Budget included a lump-sum payment of $3.46 million from the designated reserve to address the Dougherty Regional Fire Authority (DRFA) unfunded pension liability. Staff worked with the City of San Ramon on a Memorandum of Understanding (MOU) for the methodology to split each City’s allocated share of DRFA’s unfunded liabilities, assets, and annual payment amounts. The MOU was approved by the Dublin City Council in May 2023 and the payment was made in June 2023. Staff continues to monitor DRFA’s liabilities, and the City currently has $2.11 million set aside in a reserve should there be a need to address any future pension liabilities.

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Objective B: Complete an update to the Public Facility Fee Program.

This objective has been completed.

Staff retained the services of Willdan to assist with the update to the program. Willdan compiled all the necessary data to inform the various fee amounts by category, and Staff presented the report to the City Council in September 2023 with the new fees taking effect on January 1, 2024.

Objective C: Make annual contributions to reserves for the early payoff of the energy efficiency bonds.

The City Council approved a shift of $2 million from the FY 21-22 General Fund surplus to the existing reserve for bond payoff. The special designation of General Fund Reserves for FY 22-23 included an additional $1 million to towards early payoff, and on November 7, 2023, the City Council confirmed the payoff reserve balance of $7 million. On June 25, 2024, the City Council approved the additional $1,000,000 to the reserve for the bond payoff, bringing the balance to $8 million. The bonds can be paid off as early as June 1, 2029 at the remaining principal of $12.9 million, saving the City about $3.1 million in interest payments over the course of the remaining 12 years.

Objective D: Conduct a feasibility study into fiber connectivity between City facilities.

IT Staff has monitored AT&T Switched Ethernet (ASE) circuits for the past year. ASE links deliver up to 50 megabits/second (Mbps). This has significantly increased the reliability of Shannon, Senior, Heritage, and Corp Yard facilities.

IT Staff is working to finalize a municipal fiber master plan RFP for the future City-owned municipal fiber connectivity to facilities. The release of the RFP for a municipal fiber master plan was delayed to fall 2024 due to the incorporation of an analysis of community fiber into the plan, as well as IT Staff dedicating more time to the Dublin Arts Center project needs.

The upgrade of the Traffic Operations Center at City Hall, as part of the Dublin Arts Center Project, is currently underway. This project is in preparation for the second phase of the fiber optic communications upgrades along Dublin Boulevard from San Ramon Road to City Hall.

Public Works Staff continues to look for opportunities to close the gap in the network by installing fiber optic infrastructure as part of other Capital Improvement Projects and Development projects.

Objective E: Complete an update to the User Fee Study.

This objective has been completed.

The City Council approved an agreement with Matrix Consulting Group in December 2023. The study took three months to complete and calculated the cost of providing services by studying staff time and identifying all costs associated with providing services. The User Fee Study report and updated Master Fee Schedule were approved in June 2024.

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Strategy 5: Safe and Accessible Community
Objective A: Evaluate the feasibility and strategies for a community-wide fiber network.

The fiber master plan (refer to Objective 4D update) will include examining the need for expanding high-speed internet to sections of the community.

Objective B: Continue to engage with the community using all appropriate methods to share and exchange information.

Following the completion of a language survey, Communications Staff has been issuing press releases in three alternate languages – Hindi, simplified Chinese, and Spanish. The translated press releases have been sent to news outlets catering to these communities.

Staff has implemented a chatbot with Artificial Intelligence (AI) for the City’s website. Clover, the AI chatbot, allows Staff to have live chat conversations with customers in hundreds of languages, and customers can receive 24/7 assistance from Clover. In Q3, Clover had 559 interactions with customers, and Staff had 24 interactions via live chat with customers.

Staff created “Story Map,” an online, interactive tool highlighting the Adopt-A-Bench program. Story Map is now available online for residents to view park bench inventory, adoption status and availability, and locations. This move towards digital accessibility enhances community engagement and ensures a seamless experience for those interested in honoring a family member, friend, or organization.

The Parks and Community Services and Public Works Departments have begun the design and community input process for two neighborhood parks in the Francis Ranch development. The community input process will utilize diverse communication strategies to effectively engage residents. This will include an online survey, a virtual meeting, and an in-person interactive concept plan showcase to be held at the annual Splatter event.

Staff at The Wave waterpark worked to expand its outreach by leveraging the Spotify app for marketing and information sharing. This innovative approach allowed community members to discover details about the Wave's opening weekend in a fresh and engaging way, enhancing communication, and broadening our connection with the local audience.

Staff continued to improve the Pioneer Cemetery GIS and Otocast digital guide. These online programs bring a dynamic and interactive dimension to the visitor experience and how they receive site information. With these additions, residents have more access to information, enhancing community engagement.

The Parks and Community Services Department Staff have begun the process of adding communication boards at City facilities, including playgrounds (Fallon, Emerald Glen, Dublin Sports Grounds, and Don Biddle) and the Wave waterpark. These communication boards are signs filled with various symbols, pictures, or photos that can help those with limited spoken language ability receive information and communicate with those around them. Communication boards foster an inclusive environment, supporting everyone regardless of their communicative abilities while they utilize public spaces and amenities. The boards will be installed by the end of calendar year 2024. 159
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Objective C: Provide more opportunities for residents to complete transactions with the City online, with appropriate security measures.

Staff is implementing the new enterprise resource planning software, which will allow residents and businesses to pay for non-recreation services through the web-based portal upon completion. Completion of all modules and implementation will take place in July 2024.

Objective D: Ensure programs remain affordable and accessible to all members of the community, especially lower income families and seniors.

Staff partnered with KTVU Channel 2 to host a free admission day at The Wave on August 12, 2022. The event allowed those with certain financial constraints to visit The Wave at no charge. Roughly 400 participants attended the event, many enjoying the award-winning facility for the first time.

As part of the "3 for 3 in 2023" Summer campaign, a Dublin household won a 2023 Wave waterpark family season pass for up to four family members (a $208 value) after meeting the entry criteria and participating in the drawing. The Summer campaign was highlighted in the 2023 Camps and Aquatics Activity guide, and the entry deadline was March 31, 2023.

A total of $11,988 was awarded through the Youth Fee Assistance Program, benefiting 61 children and affording them the opportunity to participate in activities ranging from swim lessons to various summer camp programs. The Senior Fee Assistance Program awarded punch cards to seniors for a value totaling $1,015. From July 2023 through June 2024, $422 was donated to the Youth Fee Assistance Program and $296 to the Senior Fee Assistance Program. An additional $2,600 raised through the 15th Annual Pee Wee Walk-a-thon was donated to support both Fee Assistance Programs.

The Parks and Community Services Department introduced a 10% Military Discount for all programs, with the discount being implemented with the publishing of the 2024 Spring Activity Guide. The active-duty military discount program has provided $1,416 in discounts to service members during this period.

The City partnered with Futures Explored, an organization that works with individuals who have intellectual and/or developmental disabilities (IDD). Together, the City and the Futures Explored program, Workforce Inclusion Network (WIN) for All, enable the hiring of IDD individuals in a variety of City positions in the Parks and Community Services Department. The program has facilitated the hiring of eight new staff members from the IDD community. The City has entered the second year of partnership with Futures Explored.

The Wave offered several opportunities for families to save money during the summer months, such as:
• Wave Goodbye to Summer (August 4, 2023) allowed families to enjoy one free Youth Admission by purchasing a regular-price youth or adult admission. 75 Coupons were processed for a total discounted amount of $1,232. • 840 Dublin students and Dublin athletic $2.00 coupons were processed for a total discount of $1,680 for Dublin residents. 160
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• The Wave provided discounted admission to active or retired military individuals. 517 military admission tickets were sold at $10 each, saving families $5 – $9 per admission ticket.

After receiving feedback from the Parks and Community Services Commission, The Wave will reintroduce three buy-one-get-one promotional days in summer 2024 and coupon offers to Dublin students and participants in Dublin sports leagues for the summer 2024 waterpark season.

Staff developed a summer promotional event called Programs Palooza. This provided residents and community members with an interactive way for summer instructors to showcase their classes and programs. To further enhance accessibility, we introduced a special discount of $20.24 per class, making our programs more affordable. Five families took advantage of this opportunity. The Parks and Community Services Department plans to expand on this event for next year, ensuring that everyone can participate in and enjoy our programs.

Staff are exploring the possibility of adding self-service equipment rental lockers into various City parks. The lockers would store recreational equipment such as bocci balls, volleyballs, and badminton sets available for rent at an affordable rate. This initiative aims to provide residents and visitors with easy access to a variety of activities, offering a low-cost opportunity to try new sports without needing to purchase equipment.

Staff will unveil a new exhibit "The Memories Within: Seeing Heritage" at the Heritage Park and Museums. This exhibit will be available for free public viewing from August 2024 through February 2025, giving community access to additional no cost activities.

The Wave is implementing a new affordable and accessible recreation swim program for individuals with special needs and their families to visit The Wave in a calm, sensory-friendly environment. Sensory Splash is offered each month from October through April and takes place in our indoor pool. The music will be turned off, and lifeguards will only use whistles in emergencies. Sensory-friendly toys and a designated quiet space will be provided. The goal is to help those with special needs and their families enjoy recreational swimming in a calm environment.

Objective E: Support existing and innovative public safety efforts, like the DPS Behavioral Health Unit.

Dublin Police Services (DPS) hired a second clinician to complete its Behavioral Health Unit staffing and they are working closely with the deputies and with the community in need. Staff successfully submitted a Community Project Funding Request with Congressman Swalwell to fund the hiring of an additional clinician to focus on providing services for school-aged youth. The Unit continues to be successful, averaging a caseload of approximately 20 clients monthly.

DPS hosted the first Trunk or Treat event for the community in October 2022. The event was well attended by the community. DPS hosted the 2nd Annual Trunk or Treat in October 2023, which was well attended with more than 3,000 members of the community participating.

DPS facilitated a ‘Stuff the Cruiser’ Toy Drive at Target, bringing a trailer full of toys for donation. The toys were given to the Dublin Hively Family Resource center to be given to those less fortunate in our community. 161
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DPS was awarded an $81,000 grant from the California Office of Traffic Safety. The grant funds will be used for both education and enforcement to reduce the number of injury accidents and accidents involving impaired drivers.

Additionally, DPS hosted the 40th Annual National Night Out, visiting 31 neighborhood locations with more than a thousand community members in attendance.

DPS facilitated a Town Hall meeting with the Boulevard Community over growing concerns about individuals being released from Santa Rita Jail. About 150 people were in attendance and in response, temporary situational awareness cameras were deployed, and permanent situational cameras were ordered.

The City purchased additional FLOCK license plate reader cameras, which will assist in both in-progress crimes and on-going investigations. The City also purchased FLOCK Situational Awareness Cameras to be deployed on parks and school areas, and specifically on Arnold Road to address the growing concerns from the Boulevard Community about individuals being released from Santa Rita Jail.

The City purchased ‘Star Chase’ technology to be deployed on two Dublin Police vehicles. This technology launches a GPS dart at a vehicle attempting to flee from police. The fleeing vehicle can then be monitored via GPS without having to initiate a pursuit and put the safety of the public at risk.

The City purchased 170 additional doses of Narcan, the drug to treat individuals who overdose on opioid narcotics. These additional doses of Narcan allow for each Officer to deploy at least two doses on every one of their shifts.

Objective F: Support community awareness of protected and preserved open space in and around Dublin.

The Dublin Trail Challenge started in Summer 2023 and encouraged community members to walk, run, or hike all 26 miles of trails in Dublin. The event is free and open to all ages, and those that completed the challenge received a free shirt. The Dublin Trail Challenge returned in Summer 2024. This year's event introduces a new element, the Trail Challenge “Passport,” which encourages participants to explore the various trails and open spaces throughout the city, including the Alamo Creek Trail, Dublin Hills Regional Open Space Preserve, and Iron Horse Trail to name a few.

The City hosted another Goosechase game that encouraged people to visit places all around Dublin using pictures of those sites from years ago and photograph the sites to see how they have changed. The game encouraged residents to visit parks and places of historical interest all around Dublin.

The community bike ride on May 25 started at Civic Center, stopped at Don Biddle Community Park, and ended at the Farmers’ Market, where participants received a $5 coupon to use with the vendor of their choosing. There were eight participants in the event.

The People of the Parks (POP) Program was created as an ongoing, incentivized program encouraging community efforts to “Keep 162
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Dublin Clean & Green.” The program is designed for residents frequenting parks, sidewalks, and trails and empowers them to support City beautification efforts by carrying a litter stick and bag and keeping those areas free of litter and debris. The program is also designed for people who might not actively use City facilities and amenities but want to start getting involved in taking care of their community, and for businesses interested in promoting clean commercial areas. POP launched in early September 2023 and initial participation in the program was 200 individual volunteers and 19 organizations assisting in keeping Dublin clean and green.

The POP Program completed its first quarter review. In total, there were an estimated 316 pounds of trash collected during 138 logged hours of volunteer time. The program continued to grow in its second quarter, with 232 individuals and 10 organizations registering.

Staff is working on the Program’s new component, which will acknowledge Dublin businesses that take on the Clean and Green challenge, committing to ensuring their premises are clear of litter and pollutants. Currently, participants used the City-provided litter clean-up kits to support picking up trash at City facilities including parks, trails, and open spaces.

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STAFF REPORT

CITY COUNCIL

Agenda Item 7.2
DATE: September 19, 2023
TO: Honorable Mayor and City Councilmembers
FROM: Linda Smith, City Manager
SUBJECT: Strategic Plan Update – First Year
Prepared by: Jordan Foss, Management Analyst II
EXECUTIVE SUMMARY:

The City Council will receive its annual status update on the City’s Two-Year Strategic Plan.

STAFF RECOMMENDATION:

Receive the report and presentation.

FINANCIAL IMPACT:

None.

DESCRIPTION:

The City Council adopted the City’s Two-Year Strategic Plan on April 19, 2022. This Plan sets the overall direction for the City, guiding resources and setting specific objectives to drive City action. The Plan coincides with Fiscal Years 2022-23 and 2023-24.

This report presents the Year 1 Strategic Plan update, covering the period of July 1, 2022 through June 30, 2023. Detailed updates for the strategies and objectives are provided in Attachment 1. Key highlights for each strategy are summarized below.

Strategy 1: Downtown Dublin and Economic Development
• The primary property owner of the Dublin Place Shopping Center has submitted a Planning Application for the North Project (former credit union building at the corner of Amador Valley Boulevard and Amador Plaza Road). The North Project will pave the way for the redevelopment of the current Dublin Place shopping center with a town square, retail, housing, and life science buildings.

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• Avalon West, which is nearing the end of construction, located along St. Patrick Way will include 499 units and a new section of St. Patrick Way, completing its connection from Golden Gate Drive to Regional Street. To date, the new moniker of St. Pat’s Row was created for the events street, and public artwork was selected. • The Dublin Marketplace Loyalty Rewards Program was launched to help support Dublin small businesses. The City also attracted new tenants including Angus the Butcher Shop, Anjappar, AT&T, Cloves, Dave’s Hot Chicken, Dublin Taqueria, Five Below, Pizza My Heart, Serendipity Labs, Silver Oven & Grill, and VinFast. • The former Hexcel Corporation campus on Dublin Blvd., just west of San Ramon Road, was successfully purchased by Overton Moore Properties. Staff assisted the buyers with their due diligence in purchasing the site. The new owners plan to demolish the existing building and redevelop the site into a new business park to support advanced manufacturing and life science tenants.
• Progress has been made over the last year on the Dublin Boulevard Extension Project, which will connect Dublin Boulevard to North Canyons Parkway in Livermore.

Drawings have reached the 65% level, a funding plan has been developed and approved by the City Council, and the first developer agreement with BEX Development (Branaugh) has been executed.

Strategy 2: Housing Affordability

• Eden Housing, a non-profit housing developer, has submitted a building permit to construct an affordable housing project at 6513 Regional Street which will serve 113 low- and very low-income seniors and special needs individuals. Construction is anticipated to commence in December 2023.
• The Alameda County Surplus Property Authority continued to work with the City on the future development of an affordable housing project adjacent to the construction of the new parking garage at the East Dublin Transit Center. The future project can accommodate up to 99 units.
• At the West Dublin BART Station, Related Companies took over an all-affordable project that will include 300 units with ground-floor retail, amenity space, and parking. • The City Council approved the Francis Ranch affordability plan off Croak Road and Central Parkway in Dublin, which will include 77 units of for-rent affordable housing, of which 22 units will be for Sunflower Hill to help meet the needs of the intellectual and developmentally disabled (IDD) community. Additionally, the project will have 50 low-income accessory dwelling units, along with 18 for-sale moderate-income housing units.
• The City negotiated a land dedication for affordable housing at the DC Project (SCS property). The project is on the east side of Tassajara Road and is anticipated to serve the IDD community. The project, which can accommodate up to 100 units, will be fully integrated with the rest of the DC project and is consistent with the City Council’s Preferred Plan for the property.
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Strategy 3: Infrastructure Maintenance and Reinvestment

• Staff started its assessment of its maintenance services provided through contract with the expectation that this assessment will be presented to the City Council this current fiscal year.
• Staff continued to work with developers of and consultants for Francis Ranch and BEX Development to provide a Community Facilities District for on-going maintenance needs in those residential areas.
• In the previous fiscal year and current fiscal year budgets, the City included $2 million in funds for preventative maintenance of City facilities. • The City received approval from Metropolitan Transportation Commission (MTC) for $48,000 in grant funding through the Pavement Management Technical Assistance Program (P-TAP), Round 24. Utilizing this funding, Staff began working with MTC’s consultant to do a pavement condition assessment to develop recommendations for a multi-year pavement preservation program and pavement condition index goal.

Strategy 4: Organizational Health

• In Fiscal Year 2022-23, a lump-sum payment of $3.46 million was made to the Dublin Regional Fire Authority for the City’s portion of the unfunded pension liability, saving the City more than $2 million over a 20-year period.
• Staff prepared an update to the Public Facilities Fee to keep up with changes in development. This was presented to the City Council in September 2023. Approval of the updated fees will ensure the City is collecting adequate funding from development to support new parks and facilities.

Strategy 5: Safe and Accessible Community

• This past year, the City completed a language survey to understand how best to serve the community, and as a result, is issuing press releases in a variety of languages which best reflect community needs.
• The City partnered with Futures Explored, an organization that works with individuals who have intellectual and/or developmental disabilities (IDD). Together, the City and the Futures Explored program, Workforce Inclusion Network (WIN) for All, enable the hiring of IDD individuals in a variety of City positions in the Parks and Community Services Department. The program has facilitated the hiring of eight new staff members from the IDD community.
• To provide greater website accessibility, Staff purchased chatbot with artificial intelligence (AI) for the City’s website. The chatbot will be available 24/7, while a live agent will be available during the City’s normal business hours. The chatbot will allow customers to connect with staff via a live agent or AI in their chosen language. 166

• Dublin Police Services (DPS) hired a second clinician to complete staffing for the Behavioral Health Unit. DPS also successfully submitted a Community Project Funding Request with Congressman Swalwell to fund the hiring of an additional clinician to focus on providing services for school-age youth.
• The City purchased additional situational awareness cameras for key intersections in Dublin, with a focus on parks and school areas.
• The City provided many avenues to enhance community awareness of protected and preserved open space in Dublin through programs like: the Dublin Trails Challenge, which encourages community members of all ages to walk, run, or hike all 26 miles of trails in Dublin; the Goosechase app game, which inspires people to visit parks and places of historical interest all around Dublin; and the annual “Nature in Our Backyard” photography contest, which celebrates natural beauty found in Dublin.

In Year 2, which covers July 1, 2023 through June 30, 2024, Staff will continue to work on completing the strategic goals outlined in the 2022-24 Strategic Plan. Below are examples of how the City will continue to meet the objectives:

Strategy 1: Downtown Dublin and Economic Development

• Staff will continue to work with the majority owner of the Dublin Place shopping center to revise their master site plan and enter into a binding agreement for the development of the site. Amendments to the Downtown Dublin Specific Plan (DDSP) to implement the DPV will be brought to the City Council in fall 2023. • The City will continue to pursue discussions with developers to gauge interest in mixed-use opportunities in other areas of the DDSP.
• The City will work with developers of the GH PacVest and Righetti properties in order to continue the Fallon-East development strategy.
• Staff will proactively engage potential businesses, reach out to retailers and food/beverage tenants regarding second-generation restaurant spaces available, and continue to host business roundtables.

Strategy 2: Housing Affordability

• The City is actively working with the California Department of Housing and Community Development with the intention of achieving a certified Housing Element as soon as possible.
• The City will complete the Inclusionary Zoning Regulations, Affordable Housing In- lieu Fee determination, and Commercial Linkage Fee nexus study, and will implement new fee structure prior the beginning of Fiscal Year 2024-25. • Staff will continue to work with the developers of the Regional Street Senior Affordable Housing and Amador Station projects to facilitate funding and development.

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Strategy 3: Infrastructure Maintenance and Reinvestment

• Monthly inspections of parks and facilities will continue to be conducted in order to evaluate the condition of City infrastructure. Maintenance and replacement schedules will be utilized when developing the Fiscal Year 2024-26 capital and operating budgets. • Staff will work to identify financing options to support long-term pavement management needs in the City, including working with Townsend Public Affairs to identify grant opportunities in the pavement management field. • Staff will continue to collaborate with developers and financial consultants to develop Community Facilities Districts for facilities and for maintenance of public improvements in conjunction with projects coming online east of Fallon Road, and in conjunction with the extension of Dublin Boulevard.
• Staff will utilize the low carbon concrete specification for construction to continue implementation of the measures identified in the Climate Action Plan. Staff will also develop an Electric Vehicle Infrastructure Plan.

Strategy 4: Organizational Health

• Staff will finalize a municipal fiber master plan RFP for future City-owned municipal fiber connectivity to facilities, which will be released in fall 2023 and include an evaluation of the feasibility of community-wide broadband. • A new User Fee Study be competed and will be the basis for an updated fee structure that will be proposed to the City Council in May/June 2024.

Strategy 5: Safe and Accessible Community

• Staff will implement the new chatbot Artificial Intelligence (AI) software for use on the City’s website by October 2023.
• Staff will complete the implementation of the new enterprise resource planning software, which will allow residents and businesses to utilize the web-based portal for non-recreation services.
• Dublin Police Services will continue to support public safety efforts such as the existing DPS Behavioral Health Unit, as well as innovative new efforts, such as a first-responder drone program.
• The City will continue to provide programs to enhance community awareness of protected and preserved open space in Dublin through the Parks and Community Services Department. This includes the launch of the People of the Parks Program, which will promote the use and care of such areas.

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STRATEGIC PLAN INITIATIVE:

None.

NOTICING REQUIREMENTS/PUBLIC OUTREACH:

The City Council Agenda was posted.

ATTACHMENTS:

1) Year 1 Strategic Plan Update

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FY2022-24 Strategic Plan
Final Report
September 3, 2024
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Background
• T wo-Year Strategic Plan adopted on April 19, 2022
• Period Covered: July 1, 2022 – June 30, 2024
• Adopted Strategies include:
– Strategy 1: Downtown Dublin and Economic Development
– Strategy 2: Housing Affordability
– Strategy 3: Infrastructure Maintenance and Reinvestment – Strategy 4: Organizational Health
– Strategy 5: Safe and Accessible Community
171
Accomplishments
• Strategy 1: Downtown Dublin and Economic
Development
– Downtown Preferred Vision
– Avalon West
– Business Support and Attraction
– Fallon-East Development
– Dublin Boulevard Extension
172
Accomplishments, 2
• Strategy 2: Housing Affordability
– Certified Housing Element
– Inclusionary Zoning Regulations/Affordable Housing In-Lieu Fees
– Affordable Housing Projects
• Eden Housing
• Related Companies
• Francis Ranch
• The Dublin Centre
173
Accomplishments, 3
• Strategy 3: Infrastructure Maintenance and
Reinvestment
– Maintenance Services Assessment
– Community Facilities Districts
– Preventative Maintenance
– Climate Action Plan Implementation
174
Accomplishments, 4
• Strategy 4: Organizational Health
– DRFA Lump Sum Payment
– Public Facilities Fee Update
– User Fee Study
175
Accomplishments, 5
• Strategy 5: Safe and Accessible Community
– Language Survey
– Futures Explored
– Clover AI
– Dublin Police Services Programs
– Situational Awareness Cameras
– Open Space Community Awareness
176
Recommendation
• Receive the report and presentation
• Questions
177

STAFF REPORT

CITY COUNCIL

Agenda Item 7.2
DATE: September 3, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Linda Smith, City Manager
SUBJECT: Dublin Commons Affordable Housing Proposal
Prepared by: Hazel L. Wetherford, Deputy City Manager
EXECUTIVE SUMMARY:

The City Council will review the Dublin Commons Affordable Housing proposal for the future development of the site.

STAFF RECOMMENDATION:

Review and provide direction on the Dublin Commons Affordable Housing proposal.

FINANCIAL IMPACT:

There are no financial impacts associated with reviewing the proposal.

DESCRIPTION:

Background
On August 20, 2024, the City Council received a presentation on the proposed framework for the Dublin Commons Development Agreement for the future development of the site as further detailed in Attachments 1 and 2.

As part of the framework, the affordable housing section proposed American Realty Advisors (ARA) and Hines’ (together the Applicant) request for an alternative method of compliance to dedicate Block H, just east of the Dublin Senior Center, to the City and/or designee. This approximately 1.1-acre site was contemplated by the City Council as part of its Memorandum of Understanding with ARA in 2019 for a senior affordable housing project. The site is estimated to accommodate between 80-170 units, and 80 of these units are included in the overall request for the project.

At the August 20, 2024 City Council meeting, by consensus, the City Council directed Staff to look into including affordable housing units within the apartment buildings in the Dublin Commons 178

project. Staff has since worked with the Applicant on an affordable housing proposal that would achieve the direction provided by the City Council.

Affordable Housing Proposal
There are 1,510 units available on the site. There are 1,270 units available in the Downtown Dublin Specific Plan (DDSP) Residential Development Pool (Development Pool). The additional 240 units are from the two 2023-2031 Housing Element sites.

When the Housing Element was adopted in 2022, the City Council, as required by the Housing Element Law for sites that had been included in previous cycles, amended the DDSP to make these sites available without accessing the Development Pool provided that 20% of the units in such projects are affordable to lower-income households (see Table 6.2 and accompanying text in the DDSP). Two of those housing element sites, identified as Site #4 and Site #20 in the Housing Element, are on the Developer’s property. Site #4, 80 DDSP-development-pool-exempt units, is adjacent to the Senior Center. Site #20, 160 DDSP-development-pool-exempt units, is the parcel just south of the Target site as shown in Attachment 3.

The Applicant is requesting 1,392 units for the Dublin Commons project of which 1,270 would be allocated from the DDSP Residential Development Pool. The applicant is proposing an additional 122 units from Housing Element Site #20, which requires it to provide 20% lower-income units on those 122 units. The inclusionary housing obligation for each category of requested units is described in Table 1 below.

Table 1. Dublin Commons Inclusionary Housing Obligations Units
Requested
Affordable Housing
Requirement (%) Income Level Affordable Unit
Obligation
DDSP Residential
Development Pool 1,270 10% Low-income
households 127
Housing Element
Site 122 10% Low- income
households 12
Total 1,392 139
Because the Developer is using 122 exempt units, it has a separate obligation, as noted above, to provide 24 “lower-income” units if it uses the 122 exempt units. Because lower-income units are the low-income units under the Inclusionary Zoning Regulations, those units would satisfy the 12- unit Inclusionary Housing Obligation for those 122 units.

It should be noted that the 122 exempt units were identified to a specific parcel where the units are assigned. Through the redevelopment of the project site, the Applicant is instead proposing to reconfigure the parcels and spread these units across three parcels. Spreading the units across three parcels achieves the overall requirement to provide affordable units in accordance with the Housing Element and DDSP even though less than 20% of the units on these parcels will be affordable. This appears to meet the intent of State law, the Housing Element and the DDSP to achieve at least 24 affordable units.
179

The Applicant’s “alternative method” affordable housing proposal is the following:
 Applicant will improve (grade and stub utilities) and enter into an Affordable Housing Agreement with the City for the transfer/dedication of an approximately 1.1-acre site (Parcel H) prior to the issuance of a residential building permit for the Dublin Commons project. Parcel H will be designated for the development of an affordable housing project which would accommodate at a minimum 80 units for lower-income households (Parcel H can accommodate more than 80 units).
 Upon transfer/land dedication, the Applicant will be allowed to build and occupy up to 600 market rate units in the Dublin Commons project.
 If, prior to the 601st occupancy permit in the Dublin Commons project, construction of an affordable housing project has commenced on Parcel H for a minimum of 80 lower-income units, then no additional lower-income units will be required for the first 1,270 units in the Dublin Commons project.
 If, prior to the 601st occupancy permit in the Dublin Commons project, construction of an affordable housing project has not commencedon Parcel H, then five percent of the units in the Dublin Commons project between 601 and 1,270 will be low-income units (34 units with Inclusionary Zoning Ordinance rounding). However, upon the start of construction of Parcel H, the low-income restriction on these units would be released.  In addition, 10 of the units in each building of the Dublin Commons project will be moderate income units (for a total of 30 units).
 Any units above 1,270 would be subject to the DDSP requirement that 20% of the units be affordable to lower-income. If, as anticipated, the total number of units constructed is 1,392, it would result in an additional 24 lower-income units in the Dublin Commons project.
 Lastly, the Applicant would be entitled to receive affordable housing credit for each unit above 151. This provision creates an incentive for the Developer to increase the number of affordable units on the Parcel H site.

In total, the Dublin Commons project would provide a total of 134 affordable units as shown in Table 2 below with the exception of the deed restricted units since the restriction can be released with the start of construction of Parcel H.

Table 2. Dublin Commons “Alternative Method” Affordable Housing Proposal Affordable Units
Parcel H 80*
Onsite Moderate Income 30
Onsite Lower-Income 24
Total 134
180

*Parcel H could accommodate up to 118 units while still remaining within the 1,510 units available.

To summarize, Staff is recommending that the City Council provide direction on the affordable housing proposal to be included in the development and community benefit agreement.

STRATEGIC PLAN INITIATIVE:

Strategy 1: Economic Development, Small Business Support, and Downtown Dublin Objective B: Work with ARA and Hines on the development of the Dublin Commons project, including associated public improvements, relocation of tenants, development agreement and appropriate incentives to effectuate physical changes to the area, as well as support for small businesses.

NOTICING REQUIREMENTS/PUBLIC OUTREACH:

The City Council Agenda was posted, and a copy of the Staff Report was shared with the Applicant.

ATTACHMENTS:
1) Dublin Commons Site Plan
2) August 20, 2024 City Council Staff Report (without attachments) 3) Housing Element Downtown Site Map
181

DUBLIN COMMONS

SITE PLAN

RESTAURANT/ CAFE

RESIDENTIAL
LOBBY
OFFICE

FITNESS

PARKING
RETAIL
Attachment 1
D3

FIRST STREET

SECOND STREET

THIRD STREET

WOODLAND AVENUE

GOLDEN GATE DRIVE

COMMONS DRIVE

PLAZA DRIVE

SECOND STREET

DUBLIN BOULEVARD
N
182

STAFF REPORT

CITY COUNCIL

Agenda Item 8.2
DATE: August 20, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Linda Smith, City Manager
SUBJECT: Proposed Framework for Dublin Commons Development Agreement Prepared by: Hazel L. Wetherford, Deputy City Manager
EXECUTIVE SUMMARY:

The City Council will review the proposed framework for the Dublin Commons Development Agreement for the future development of the site.

STAFF RECOMMENDATION:

Review and provide direction on the proposed framework for the Dublin Commons Development Agreement.

FINANCIAL IMPACT:

There are no financial impacts associated with app
roving the proposed framework.

DESCRIPTION:

Background
Over the last several years, the City Council has made significant progress towards realizing the goal of delivering a downtown project to the community through the Downtown Dublin Preferred Vision. There have been at least 10 public meetings and subsequent actions during that period.

Following is a summary of those meeting dates and actions taken:

October 15, 2019 Resolution No. 107-19 which approved a Memorandum of Understanding (MOU) between the City and American Realty Advisors (ARA), the primary property owner of the Dublin Place shopping center.

November 5, 2019 Resolution No. 115-19 which approved the Downtown Dublin Preferred Vision (DPV) and its three main principles (siting of the town square, a new street grid network, and the downtown character).

Attachment 2
183

December 3, 2019 Resolution No. 126-19 which amended the General Plan and Downtown Dublin Specific Plan (DDSP) to allow an increase in the allowable commercial floor area ratio (FAR) in the Transit Oriented and Retail Districts, combined new residential dwelling unit allocation into one pool for all three districts, and amended the parking standards for the Village Parkway and Transit Oriented Districts.

July 21, 2020 Resolution No. 79-20 which amended the DDSP to create a new street grid in the Retail District, site a town square, combine the remaining allocation of new non-residential square footage from the Transit Oriented and Retail Districts into one pool, allow lodging in the Retail District, and update the design guidelines for the Core Area of the Retail District.

November 17, 2020 Resolution No. 121-20 which adopted the Downtown Dublin Streetscape Plan and amended the City of Dublin Streetscape Master Plan.

April 6, 2021 Resolution No. 26-21 which approved a First Amendment to the MOU with ARA, providing a 12-month term extension.

April 5, 2022 Resolution No. 30-22 which approved a Second Amendment to the MOU with ARA, providing a 14-month term extension.

November 6, 2023 Received a presentation from Staff, the City’s consultant Urban Field Studio, and ARA on the proposed implementation of the DPV. After the presentation, the City Council provided direction to Staff on additional DDSP Amendments required to support the DPV.

December 19, 2023 Resolution No. 134-23 amending the General Plan and DDSP to further implement the Downtown DPV. The amendments consisted of adding Research and Development as a new land use, increasing the residential allocation by 465 units, decreasing the non-residential allocation by 300,000 square feet, increasing the building height and floor area ratio in the Core Area of the Retail District, and changing setbacks.

July 16, 2024 Received a presentation from Staff on updates to the Downtown Dublin efforts, including the ongoing work on the development of the Dublin Commons project, which includes the town square, living options, commercial uses, and the proposed life science buildings.

Upon adoption of the DDSP amendments in December 2023, ARA and Hines (Applicant) submitted a Planning Application for the Dublin Commons project which is the redevelopment and rebranding of the Dublin Place shopping center consistent with the core tenants of the Preferred Vision. Dublin Commons is a mixed-use project of up to 275,000 square feet of retail (consisting of 155,000 square feet of new retail and 120,000 square feet of existing retail), 535,000 square feet 184

of Research and Development (Life Science), up to 1,510 multifamily residential units (inclusive of the affordable housing site units) and a new Town Square.

As Staff has shared in previous presentations, the City has partnered with ARA to bring the City’s Preferred Vision to reality. The City approached ARA with the opportunity for a public-private partnership to deliver a project that neither the City nor the property owner could accomplish alone. Based on this partnership, ARA has made significant commitments exceeding $90 million as further detailed in Attachment 2.

Framework for Development Agreement and Community Benefit Agreement As part of the proposed project, the Applicant is requesting approval of a Development Agreement and Community Benefit Agreement (Agreement). The Agreement would provide security to the Applicants that the City will not change its zoning and other laws applicable to the project for a stated period. Additionally, it is a mechanism for the City to obtain commitments from the Applicants that the City might not otherwise be able to obtain. Below is the framework for the Agreement.
 Term
o An initial 25-year term with options to extend one-year increments for up to 10 additional years.
o Applicant would make a community benefit payment to the City of $250,000 per year unless, at the time of the extension request, the City Manager determines that significant process is being made on the project.
 Phasing
o The project will be phased over time and the initial phase will include the Town Square and the surrounding commercial development around the Town Square, both of which will be completed prior to or concurrently with the first residential development.
 Downtown Dublin Specific Plan Residential Development Pool o Applicant is requesting a reservation of the remaining 1,270 units from the Downtown Dublin Specific Plan Residential Development Pool. o In order to pull units from the Pool, community benefits must be considered. The Staff has included the following benefits:
 Project will generate significant new revenue for the City, anticipated to be $130 million over 30 years.
 Project is estimated to generate 1,400 jobs at build out.  Project will serve as a catalyst for future economic development around the Downtown area and is consistent with the goals and objective of the Downtown Preferred Vision.
 City has requested from the Applicant to designate Dublin as the point of sale for the general contractor and sub-contractors so any sales tax derived from such activities during construction can be allocated to the City. 185

One item still under discussion is the ability to utilize future square feet within the Life Science/Office buildings for use as a lab and coworking center.  Affordable Housing
o Applicant would enter into an affordable housing agreement with the City, which would include an alternative method of compliance to dedicate Block H, just east of the Dublin Senior Center, to the City and/or designee. This 1.1-acre site was contemplated by the City Council as part of its Memorandum of Understanding with ARA in 2019 for a senior affordable housing project. The site can accommodate between 80-170 units and 80 of these units are included in the overall request for the project. It should be noted that there are additional obligations outlined in the Housing Element for this location that have been codified in the DDSP that would need to be addressed as part of any agreed upon affordable housing program for this site.
 Public Infrastructure and Improvements
The public infrastructure and improvements are a vital part of the overall project and the City’s involvement in participating in these costs is key to the overall feasibility. Following is a summary of the items and obligations being discussed:
o Applicant will receive fee credits and reimbursements for certain public improvements made on behalf of the City. These include:
 Town square dedication and improvements
 Construction of new public streets
 Modifications to existing intersections
 Bicycle and pedestrian improvements
 Other improvements identified in the Western Dublin Transportation Impact Fee program
o Staff is recommending an allocation of public art fees to the project area, as well as a future gateway sign.
o Public Parking Garage: The garage is extremely important to the overall project at a later phase once the second life science building is constructed. The Applicant and Staff propose the following:
 City acquisition of the 2-acre public parking garage site (Block E2).  Applicant to improve surface parking during the intervening period.  Improvement of the public parking garage site upon approval of the second life science building.

The number of parking stalls, 1,100, was vetted by the City’s parking consultant.

This number will provide adequate market-based parking for life science users as well as daytime and weekday use. The capacity will also be necessary to handle the 186

more intense use during the evenings and weekends.

The parking garage site is estimated to cost $6 million, and the garage improvement is estimated to cost $75 million. Staff is recommending a financial commitment to support these public improvements through available grant funding, financing, and use of the General Fund Reserves. Staff will continue to allocate future annual surpluses and other lump-sum funding to the General Fund Downtown Public Improvements Reserve towards the project during the initial phase and during later phases (public parking garage) to help offset costs associated with these public infrastructure improvements.
 Marketing and Promotion
o The Agreement will also anticipate language to have the Applicant formalize a marketing and promotion effort to support the businesses surrounding the Town Square, as well as events within the Town Square.
 Maintenance
o The Agreement will also address ongoing maintenance of the private and public infrastructure in Dublin Commons with consideration of the Applicant agreeing to funding maintenance for public infrastructure. The Applicant may propose an alternate method, to be approved by the City Engineer.
 Small Business Support
o Staff and Applicant proposed to work together to provide small business support programs to help incentivize the attraction of high-quality restaurants and retailers.

Currently, the City has sewer capacity set aside for the Downtown area that could be provided to the project and to specific restaurant tenants at the City Council’s discretion. Additional support could come from the use of the Small Business Assistance Program that has been in use by the City to support improvements related to Title 24/ADA and/or trash enclosure requirements.  Commercial Retail Development
o To ensure high-quality restaurants and retailers, Staff and the Applicant agree that the Site Development Review will include:
 Minimum ground floor commercial height of 18’
 Minimum of 100,000 square feet of retail spaces surrounding the Town Square
 Provide several outdoor dining areas to support a vibrant dining experience  Funding Mechanisms
o Staff and the Applicant agree to work on possible funding mechanisms to support the project including, but not limited to:
 Use of the General Fund Reserve for public infrastructure and improvements  Lease revenue bond (finance the construction of the parking garage)  Available Grant Funding
187

 Fee Deferrals
 Tax Sharing Options (Property/Sales)
 Statewide Communities Infrastructure Program
 Enhanced Infrastructure Financing Districts
 Community Facilities District
 City’s existing programs, including Sewer Capacity, Commercial Façade Grants and Small Business Assistance programs.

To summarize, Staff is recommending receiving feedback and direction from the City Council so that Staff can proceed with the preparation of the Agreement. Should the City Council authorize Staff to move forward, a Development Agreement and Community Benefit Agreement will be formalized and will be brought to the Planning Commission for review and recommendation to the City Council.

STRATEGIC PLAN INITIATIVE:

Strategy 1: Economic Development, Small Business Support, and Downtown Dublin Objective B: Work with ARA and Hines on the development of the Dublin Commons project, including associated public improvements, relocation of tenants, development agreement and appropriate incentives to effectuate physical changes to the area, as well as support for small businesses.

NOTICING REQUIREMENTS/PUBLIC OUTREACH:

The City Council Agenda was posted, and a copy of the Staff Report was shared with the Applicant.

ATTACHMENTS:
1) Site Plan
2) July 16, 2024 City Council Staff Report
188
Appendix D: Adequate Sites Analysis D-21
2023-2031 Housing Element
Figure D-1: 2023-2031 RHNA Sites Inventory Map
Attachment 3
189
Dublin Commons Affordable
Housing Proposal
September 3, 2024
190
Background
• 8-20-2024 - Proposed Framework for
Development Agreement
– City Council direction to include affordable housing
units within the Dublin Commons project
191
Affordable Housing Proposal
• 1,510 units available
– 1,270 units
DDSP Residential Development Pool
– 240 units
Housing Element Sites: #4 - 80u and #20 – 160u
192
Affordable Housing Proposal, 2
Site # Net Potential
Units
Units by Income
Category
4 80 80 Low
20 160 110 Low
50 Moderate
193
Affordable Housing Proposal, 3
• 1,392 units have been requested by Applicant
– 1,270 units from DDSP Residential Development Pool
– 122 units from Housing Element Site #20
• Housing Element sites require 20% lower-income units
194
Affordable Housing Proposal, 4
• Dublin Commons Inclusionary Housing Obligations
195
Affordable Housing Proposal, 5
• Alternative Method Request Includes:
– Applicant will improve (grade and stub utilities) and transfer/dedicate Parcel H (approx. 1.1-acre site)
– Upon transfer/dedication, the Applicant will be allowed to occupy up to 600 market rate units
– If, prior to the 601st occupancy permit,
• construction has commenced on Parcel H, then no additional lower-income units will be required for the first 1,270 units
• construction has not commenced on Parcel H, then five percent of the units between 601 and 1,270 will be low-income units (34 units with rounding). However, upon start of construction, the low-income restriction would be released on those units. 196
Affordable Housing Proposal, 6
• In addition, 10 of the units in each residential building of the Dublin Commons project will be moderate income
units (30 units)
• Any units above 1,270 would be subject to the DDSP
20% requirement (24 units)
• Lastly, the Applicant would be entitled to receive
affordable housing credit for each unit above their
obligation
197
Affordable Housing Proposal, 7
• In total, the Applicant would provide 134
affordable units
198
Recommendation
• Receive and provide direction on the Dublin
Commons Affordable Housing proposal
• Questions
199

STAFF REPORT

CITY COUNCIL

Agenda Item 8.1
DATE: September 3, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Linda Smith, City Manager
SUBJECT: Amendments to the First Time Homebuyer Loan Program Guidelines Prepared by: Jason Earl, Senior Management Analyst
EXECUTIVE SUMMARY:

The City Council will consider amendments to the First Time Homebuyer Loan Program Guidelines. The proposed changes are intended to increase the use of the program and to ensure it is compatible with other loan programs. The proposed changes include: 1) lowering the interest rate to 3 percent; 2) lowering the required minimum downpayment to 3 percent; 3) increasing the maximum loan amount to 20 percent of the purchase price for below market rate and market rate units and increasing the not-to-exceed loan amount to $100,000; 4) allowing subordination of the City’s lienholder position when other government homebuyer assistance programs are utilized in conjunction with a City loan; and 5) making other minor edits and clarifications to the text of the program.

STAFF RECOMMENDATION:

Adopt the Resolution Amending the First Time Homebuyer Loan Program Guidelines, and approve the budget change.

FINANCIAL IMPACT:

As proposed, the budget for the loan program would be increased from $320,000 to $500,000, to account for the higher proposed loan limit for the First Time Homebuyer Loan Program. There is sufficient money available in the City’s Affordable Housing Fund to accommodate the budget change.

DESCRIPTION:

The City Council adopted the First Time Homebuyer Loan Program (FTHLP) in 2006 (Resolution 31-06). The program addressed a 2003 Housing Element policy that the City should provide financial assistance and education for first-time homebuyers. The creation of the FTHLP was also included in the City Council Goals and Objectives in Fiscal Year 2005-06. Since then, the City 200

Council has periodically approved amendments to the program. This includes changing the interest rate from a variable rate to 3.5 percent in 2007 (Resolution No. 107-07) and setting the maximum loan at 10 percent of the market-rate sales price, and up to 15 percent of the below market rate sales price and a not-to-exceed loan amount of $40,000 in 2011 (Resolution No. 23- 11).

The FTHLP provides financial assistance in the form of a deferred loan to income-qualified first- time homebuyers. With a deferred loan, no principal or interest payments are due during the life of the loan which is paid off when the property is sold or refinanced. The FTHLP can be used by income-qualified households to purchase market-rate or below-market-rate (BMR) units. The FTHLP currently requires that applicants meet the following:
 Secure a primary home loan through a lending institution.  Successfully complete a City-approved First Time Homebuyer class.  Use a fixed mortgage of 40 years or less.
 Make a minimum downpayment of 3.5 percent of the purchase price.  Have a household income that does not exceed Moderate Income.  Have $250,000 or less in assets.
 Have not owned any real property in the last three years.  Occupy the home as a primary residence.
 Have a minimum FICO credit score of at least 620.
 Meet citizenship requirements.
 Have a debt-to-income ratio (including housing costs and unsecured debt) that cannot exceed 45 percent.

The City of Dublin Strategic Plan for Fiscal Years 2024 – 2026 includes Strategy 3: Housing Inclusivity and Affordability which includes the following two objectives:
 Objective A: Implement the goals, policies and programs in the 2023-2031 Housing Element; and
 Objective C: Support programs that facilitate homeownership such as the First Time Homebuyer Loan Program.

In addition, the 2023-2031 Housing Element includes Program E.7 which indicates the City will review the FTHLP for opportunities to broaden the use of the program and to ensure compatibility with similar loan programs.

Staff reviewed the existing FTHLP, researched loan programs in other communities, and considered how to structure the FTHLP to better align with County and State programs. Based on this review, Staff is proposing modifications to the FTHLP to increase the use of the program and enable more residents to become first-time homebuyers.

Analysis
The City has issued 67 loans totaling $2,382,649, and 28 of those loans totaling $1,035,112 have been repaid since the inception of the FTHLP. Of the total loans, 59 have been for below-market- rate (BMR) properties, and eight have been for market-rate properties. Two FTHLP loans were for very-low-income households, two loans were for low-income households, and 63 loans were for 201

moderate-income households.

In more recent years, the loan program has been underutilized. For example, there have only been eight new loans in the last five years. There appears to be a variety of reasons the program has not been used as much in recent years, including historically low interest rates, increasing home prices, and compatibility issues with County and State financing programs. It is worth noting that the City has seen an uptick in loan activity in the last fiscal year, which also coincides with increasing interest rates. Table 1 shows the loans that have been issued by fiscal year.

Table 1 - First Time Homebuyer Loan Program by Fiscal Year Loan Start
Date
Number of Loans
Issued
Total
Amount of
Loans Issued
FY2006-07 3 $136,454
FY2007-08 15 $469,456
FY2008-09 8 $292,851
FY2009-10 2 $69,595
FY2010-11 4 $134,200
FY2011-12 11 $365,713
FY2012-13 9 $317,492
FY2013-14 5 $196,888
FY2014-15 0
-
FY2015-16 1 $40,000
FY2016-17 0
-
FY2017-18 1 $40,000
FY2018-19 0
-
FY2019-20 2 $80,000
FY2020-21 0
-
FY2021-22 1 $40,000
FY2022-23 1 $40,000
FY2023-24 4 $160,000
Totals 67 $2,382,649
Staff reviewed the terms of similar loan programs in surrounding cities. Table 2 below compares the City of Dublin’s program terms with those of other surrounding communities. 202

Table 2 - City Comparison of First Time Homebuyer Loan Programs City
Interest
Rate
Loan
Term in
years
Max Loan
Amt
BMR Unit
(% of price)
Max Loan
Amt Market
Rate Unit
(% of price)
Max Loan
Amt
($)
Min Down
payment
required
(% of price)
Dublin 3.5% 30 15% 10% $40,000 3.5%
Concord 0.0% 15 20% 20% $40,000 3.0%
Danville N/A N/A N/A N/A N/A N/A
Fremont N/A N/A N/A N/A N/A N/A
Hayward N/A N/A N/A N/A N/A N/A
Livermore - BEGIN 3.0% 30 20% 20% $30,000 3.0%
Livermore -
CalHome 3.0% 30 20% 20% $60,000 3.0%
Livermore -
Non-CalHome
(MAP) 3.0% 20 20% 20% $60,000 3.0%
Pleasanton 0.0% 30 20% 20% $100,000 3.0%
Alameda County -
AC Boost 0.0% 30 10% 50% $210,000 0.0%
San Ramon N/A N/A N/A N/A N/A N/A
Walnut Creek -
not BEGIN 0.0% 45 17% 17% $65,000 3.0%
Walnut Creek -
BEGIN 1.0% 30 20% 20%
Not
specified 3.0%
Napa 1.0% 30 30% 30% $150,000 1.0%
Average 1.4% 31 20% 20% $ 83,000 2.8%
Recommended Amendments
Based on the evaluation of the programs of other agencies, Staff recommends the following changes to Dublin’s program.
 Lower the interest rate from 3.5 percent to 3 percent.This would make Dublin’s FTHLP more comparable to programs in other cities in the Tri-Valley and surrounding areas. It would also help first-time homebuyers build more equity over time because they would accrue less interest which must be paid when they pay off their loan.  Lower the minimum downpayment from 3.5 percent to 3 percent.This aligns with other similar programs such as the Alameda County AC Boost program. Similarly, conventional loans require a minimum downpayment of 3 percent, and VA loans require zero downpayment. This change is also comparable to the downpayment required by loan programs offered in peer communities. Additionally, research has shown that higher down payments make it harder for minorities to enter the housing market. Lowering the down payment requirement provides increased and more equitable opportunities for 203

homeownership.
 Increase the loan amount as a percentage of purchase price from 15 percent to 20 percent for BMR properties and from 10 percent to 20 percent for market-rate properties and increase the not-to-exceed loan amount from $40,000 to $100,000.In 2011 the maximum loan amount was set at $40,000, which was approximately 8 percent of the then current median home price in Dublin of $462,000. Currently, the median home price in Dublin is $1.3 million, more than double the former median housing price. Increasing the maximum loan amount to $100,000 would be approximately 8 percent of the cost, keeping up with housing inflation. Similarly, the cities of Pleasanton and Napa both offer a maximum loan amount of $100,000 or more.
 Allow the City loan position to be subordinated behind the primary mortgage and other public downpayment assistance programs to be in a third or fourth lienholder position.

Lienholder position is the order of seniority in which the law recognizes a lender’s claims against a property and determines the sequence of repayment in the event of a foreclosure.

Typically, the primary lender is in the first lienholder position. The FTHLP requires the City loan to be in the second lienholder position. However, buyers often seek to layer in financial assistance from more than one loan assistance program, such as Alameda County Boost, the California Housing Finance Authority (CalHFA), or other County, State and Federal government loan programs. These loan programs have rigid subordination requirements that often conflict with the City second lienholder position. Therefore, Staff recommends amending the FTHLP to allow the City loan position to be subordinated behind the primary mortgage and other public downpayment assistance programs to allow the City to be in a third or fourth lienholder position when County, State, or governmental downpayment assistance programs require the second and/or third lienholder position.

Allowing the City’s subordination will allow buyers to access the FTHLP and County, State and Federal loan programs to layer in more assistance, enabling more buyers to afford a home purchase.
 Make other non-substantive edits and clarifications to the text.The FTHLP Guidelines have received minor and non-substantive edits such as grammatical and formatting updates.

These changes can be seen in the redline version of the guidelines (Attachment 3). In addition, clarification has been added to align with current practices, such as establishment of administrative fees and program income limits being set by the California Department of Housing and Community Development (HCD), limiting the primary loan to a term of 30 years, and updating the preference point program.

A resolution approving the proposed amendments to the First Time Homebuyer Loan Program Guidelines is included as Attachment 1, with the amended Guidelines included as Attachment 2.

Attachment 3 provides the proposed amendments in redline format where underlined text is proposed to be added and text with a strikethrough is proposed to be deleted.

FTHLP Buyer Scenarios
Below are several scenarios of how the FTHLP loan may be used and what home prices the loan 204

would enable potential buyers to purchase.

In the first set of scenarios, a couple buying a condominium or townhouse would have the following purchasing limits based on an Adjusted Median Income (AMI) of 100 or 120. These scenarios are for a FTHLP buyer who provides a 3 percent down payment and applies for the full $100,000 loan.

Median Income – AMI of 100
Family of 2 First Time
Homebuyers
As of
8/14/2024
Median income - Annual Income $124,550
Assumes HOA Dues, Property Taxes and
Homeowners Insurance
30-year term at 6% interest
Buyer puts 3% down and gets $100k in FTHLP
funds
Maximum Home Purchase Price of $541,650
Moderate Income – AMI of 120
Family of 2 First Time
Homebuyers
As of
8/14/2024
Moderate income - Annual Income $149,500
Assumes HOA Dues, Property Taxes and
Homeowners Insurance
30-year term at 6% interest
Buyer puts 3% down and gets $100k in FTHLP
funds
Maximum Home Purchase Price
of $647,770
In the second set of scenarios, a family of four buying a single-family residence would have the following purchasing limits based on an Adjusted Median Income (AMI) of 100 or 120. These scenarios are for a FTHLP buyer who provides a 3 percent down payment and applies for the full $100,000 loan.

Median Income – AMI of 100
Family of 4 First Time
Homebuyers
As of
8/14/2024
Median Income - Annual Income $155,700
Assumes HOA Dues, Property Taxes and
Homeowners
Insurance
30-year term at 6% interest
Buyer puts 3% down and gets $100k in FTHLP
funds
Maximum Home Purchase Price
of $674,140
Moderate Income – AMI of 120
Family of 4 First Time
Homebuyers
As of
8/14/2024
Median Income - Annual Income $186,850
Assumes HOA Dues, Property Taxes and
Homeowners Insurance
30-year term at 6% interest
Buyer puts 3% down and gets $100k in FTHLP
funds
Maximum Home Purchase Price of $806,600
STRATEGIC PLAN INITIATIVE:

Strategy 3: Housing Inclusivity and Affordability
Objective A: Implement the goals, policies, and programs in the 2023-2031 Housing Element.

Objective C: Support programs that facilitate homeownership such as the First Time Home Buyer Loan Program.
205

ENVIRONMENTAL DETERMINATION:

The California Environmental Quality Act (CEQA), together with State Guidelines and City of Dublin CEQA Guidelines and Procedures require that certain projects be reviewed for environmental impacts and that environmental documents be prepared. The proposed Amendments are exempt from the requirements of CEQA pursuant to CEQA Guidelines Section 15061(b)(3) as the amendments would not result in any physical changes and it can be seen with certainty that the amendments would not have a significant effect on the environment, and the amendments do not involve any commitment to any specific project.

NOTICING REQUIREMENTS/PUBLIC OUTREACH:

The City Council Agenda was posted.

ATTACHMENTS:
1) Resolution Amending the First Time Homebuyer Loan Program Guidelines 2) Exhibit A to the Resolution – First Time Homebuyer Loan Program Guidelines 3) Redline Version of Amendments to the First Time Homebuyer Loan Program Guidelines 4) Budget Change
206
Attachment 1
Reso. No. XX-24, Item X.X, Adopted XX/XX/2024 Page 1 of 2 RESOLUTION NO. XX – 24

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF DUBLIN

AMENDING THE FIRST TIME HOMEBUYER LOAN PROGRAM GUIDELINES WHEREAS, the City of Dublin Strategic Plan for Fiscal Years 2024-26 includes Objective 3A to implement the goals, policies and programs in the 2023-2031 Housing Element and Objective 3C to support programs that facilitate homeownership such as the First Time Homebuyer Loan Program; and
WHEREAS, the City of Dublin 2023-2031 Housing Element includes Program E.7: First Time Homebuyer Loan Program indicating the City will review the FTHLP and update as opportunities become available to expand the program and ensure compatibility with similar loan programs; and
WHEREAS, a goal of the Housing Element is to expand housing opportunities for all segments of Dublin’s population; and
WHEREAS, on March 21, 2006, the City Council approved a First Time Homebuyer Loan Program (FTHLP); and
WHEREAS, on June 19, 2007, and March 1, 2011, the City Council approved amendments to the First Time Homebuyer Loan Program Guidelines to update practices and procedures, change the interest rate from a variable rate to 3.5 percent (Resolution No. 107-07), and establish the maximum loan at 10 percent of market rate sales price or 15 percent of below market rate sales price, and a maximum loan amount not to exceed $40,000 in 2011 (Resolution No. 23-11); and
WHEREAS, on September 2, 2014, the City Council approved changes to the First Time Homebuyer Loan Program Guidelines to improve the management and administration of the First Time Homebuyer Loan Program; and
WHEREAS, pursuant to California Environmental Quality Act (CEQA) and CEQA Guidelines Section 15378(b)(4), revising the First-Time Homebuyer Loan Program Guidelines is not a project and would not result in any physical changes it can be seen with certainty that the amendments would not have a significant effect on the environment, and the amendments do not involve any commitment to any specific project, therefore, exempt from the requirements of CEQA; and
WHEREAS, a Staff Report was submitted to the City Council recommending approval of amendments to the First Time Homebuyer Loan Program Guidelines; and WHEREAS, on September 3, 2024, the City Council met to consider the Amendments to the First Time Homebuyer Loan Program Guidelines; and
WHEREAS, on September 3, 2024, the City Council did hear and use independent judgment and considered all said reports, recommendations and testimony. 207
Reso. No. XX-24, Item X.X, Adopted XX/XX/2024 Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED that the Dublin City Council hereby adopts the amended First Time Homebuyer Loan Program Guidelines attached hereto as Exhibit A.

PASSED, APPROVED AND ADOPTED this 3rd day of September 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________
Mayor
ATTEST:
_________________________________
City Clerk
208
— SEPTEMBER 2024 —

FIRST TIME HOMEBUYER

LOAN PROGRAM GUIDELINES
City of Dublin
Housing Division
100 Civic Plaza
Dublin, CA 94568
925-833-6610
[email protected]
www.dublin.ca.gov/housing/fthlp
Attachment 2
209

TABLE OF CONTENTS
First Time Homebuyer Loan Program Guidelines September 3, 2024 i
1 INTRODUCTION 1
2 DEFINITION OF TERMS 2
3 LOAN TERMS 5

3.1 Overview of Loan Terms 5

3.2 Financing Requirements 6

3.2.1 Acceptable Primary Loan Products 6

3.2.2 Prohibited Primary Loan Products and Unacceptable Mortgage Features 6

3.2.3 Down Payment 6

3.3 Property Inspection Reports 7

3.4 Recorded Loan Documents 7

3.4.1 Loan Documents for Below Market Rate Homes 7

3.4.2 Loan Documents for Market Rate Homes 7

3.5 Equity Share 7

3.5.1 Below Market Rate Units 7

3.5.2 Market Rate Units 7
4 HOUSEHOLD QUALIFICATIONS 9

4.1 Household Qualifications 9

4.2 Description of Qualification Requirements 10

4.2.1 Household Income 10

4.2.2 Credit Score 13

4.2.3 Homebuyer Education Program 13

4.2.4 Debt to Income Ratio 13

4.2.5 Preference Points 13
5 PROCEDURES 15

5.1 Loan Application, Approval, and Funding Procedures 15

5.2 Pre-Qualification 16
Attachment 2
210

TABLE OF CONTENTS
September 3, 2024 First Time Homebuyer Loan Program Guidelines ii

5.3 BMR Unit Refinancing 16

5.4 Loan Payoffs 17
6 EXCEPTIONS 18
E

XHIBITS
Exhibit 1 Sample Loan, Occupancy, Refinancing, and Resale Restriction Agreement with Option to Purchase (for loans on Below Market Rate homes)
Exhibit 2 Sample Deed of Trust, Assignment of Rents, Fixture Filing, and Security Agreement (for loans on Below Market Rate homes)
Exhibit 3 Sample Secured Promissory Note (for loans on Below Market Rate homes) Exhibit 4 Sample Loan and Equity Share Agreement (for loans on Market Rate homes) Exhibit 5 Sample Deed of Trust, Assignment of Rents, Fixture Filing and Security Agreement (for loans on Market Rate homes)
Exhibit 6 Sample Secured Promissory Note (for loans on Market Rate homes)

LIST OF TABLES
TABLE 1. LOAN TERMS AND REQUIREMENTS 5
TABLE 2. APPLICANT HOUSEHOLD QUALIFICATIONS 9
TABLE 3. PROGRAM INCOME LIMITS BY HOUSEHOLD SIZE (2024) 10 TABLE 4. ANNUAL INCOME CALCULATIONS BY PAY FREQUENCY 12

LIST OF FIGURES
FIGURE 1. LOAN APPLICATION PROCESS 15
FIGURE 2. LOAN PAYOFF PROCESS 17
FIGURE 3. EXCEPTION REQUEST PROCEDURE 18

LIST OF EXAMPLES
Example 1. Equity Share Calculation 8
Example 2. Determining Income with Assets 13
Attachment 2
211
First Time Homebuyer Loan Program Guidelines September 3, 2024 1 1 INTRODUCTION
The City of Dublin (City) First Time Homebuyer Loan Program (Program, FTHLP) provides financial assistance, in the form of a deferred loan, to income-qualified first time buyers who wish to buy a home in the City.

These FTHLP Guidelines (Guidelines) describe loan terms, eligibility requirements, and procedures. Users of these Guidelines are encouraged to seek their own legal counsel to aid in understanding the requirements of the FTHLP. For any general questions regarding the Program or these Guidelines, users may call the City’s Housing Division at (925) 833-6610.

The effective date of these Guidelines is September 3, 2024. The City will review and, to the extent necessary, update these Guidelines annually. The City Manager may approve minor revisions, interpretations, or clarifications to these Guidelines. Any such revision, interpretation, or clarification shall become effective when posted on the City’s website.

Non-Discrimination
All persons have the right to file a written application for a mortgage loan. An eligible Borrower is a person (or persons) who is obligated to the repayment of a loan by the signing of the note. Loans to corporations, partnerships, or syndications are not acceptable.

The City does not discriminate in granting or denying loans or in setting terms and conditions of a loan, with regard to race, color, age, religion, gender, marital status, sexual orientation, national origin, or ancestry of the Applicant; nor with regard to the racial or ethnic composition of the neighborhood, geographic areas surrounding the property or with regard to income derived from any public assistance program.

Attachment 2
212
First Time Homebuyer Loan Program Guidelines September 3, 2024 2 2 DEFINITION OF TERMS
As used in these Guidelines, the following terms shall be defined as follows:

Administration Fees:
• The City Council shall, by resolution, establish a fee charged by the City to the loan recipient for the underwriting, processing, and serving of the approved loan. • A reimbursement fee charged by the City to the Applicant at the time of application for a credit report.

The fee amount varies based on actual cost.

F
ees may be adjusted from time to time by the City.

Applicant: A household that has submitted an application for a loan under the City’s First Time Homebuyer Loan Program.

Area Median Income (AMI): The Area Median Income adjusted for household size as published annually for Alameda County by the California Department of Housing and Community Development (HCD).

Below Market Rate (BMR) Units: A Below Market Rate or BMR Unit is a unit that is reserved for sale to Low- or Moderate-Income households. BMR Units have restrictions recorded against them to ensure they remain affordable for a set period of time. For additional information regarding BMR Units in the City, refer to the Guidelines to the Inclusionary Zoning Regulations Ordinance.

Borrower: A household that has been approved for or has received an FTHLP loan.

CalHFA: The California Housing Finance Agency.

City: The City of Dublin.

City Council: The legislative body of the City of Dublin.

City Staff: An employee or designee of the City of Dublin responsible for actions related to the Program or these Guidelines.

First Time Homebuyer: A person who has not owned any interest in real property during the three-year period prior to the date of the household’s loan application, including without limitation, real property in which a household member’s name appears on the title regardless of whether the member’s interest in such property results in a financial gain, such property is located in another state or country, or the member has occupied such property as his or her primary residence. If any person has had his or her name on the title of a property, but the property was sold more than three years ago from the date of application, the person is considered a First Time Homebuyer.

Gross Household Income: All income, from whatever source derived, of all adult household members (18 years of age and older), whether or not such income is exempt from federal income tax. Refer to Section 4.2.1 for a list of income sources and exceptions.

Guidelines: These First Time Homebuyer Loan Program Guidelines.

HCD: The California Department of Housing and Community Development.

Attachment 2
213
2 DEFINITION OF TERMS
September 3, 2024 First Time Homebuyer Loan Program Guidelines 3 HOA: Homeowners Association.

Homebuyer Class: A United States Department of Housing and Urban Development, Fannie Mae, or City- approved course designed to provide basic education for First Time Homebuyers. Refer to the City’s website (https://www.dublin.ca.gov/housing/education) for organizations that may offer this course. The date on the completion certificate for the class must be within six months of the date of application for a Loan.

Housing Expenses: P rincipal, interest, private mortgage insurance, taxes, insurances, and HOA dues.

HUD: The United States Department of Housing and Urban Development.

Immediate Family Member: A mother, father, brother, sister, child, grandparent, or grandchild.

Legal Resident: A citizen or other national of the United States or a qualified alien as defined by the Federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996.

Loan Committee: The Loan Committee is appointed from time to time by the City Manager and generally consists of senior staff from the City’s Community Development and Finance Departments as well as a representative from the City Manager’s office. The Loan Committee reviews loan applications and approves, conditionally approves, or denies loan applications. Decisions require a two-thirds vote.

Low Income: Total Household Income that is 51% to 80% of Area Median Income (AMI), adjusted for actual household size.

Maximum Income: The Maximum Income for the Moderate Income category determined periodically by HCD based on AMI. See Section 4.2.1 of these Guidelines for Maximum Incomes.

Moderate Income: Total Household Income that is 81% to 120% of AMI, adjusted for actual household size.

Preference Points: Points assigned to persons employed in the City of Dublin, public service employees working for a public agency within the City of Dublin, Dublin residents, Seniors (62+), Veterans, persons who are permanently disabled (with written verification from a physician or show receipt of Supplemental Security Income or Social Security Disability Insurance), persons who are Immediate Family Members of a Dublin resident, and persons who are required to relocate from a Dublin residence due to demolition of the residence or conversion of the residence from a rental to an ownership unit. Persons with Preference Points are given priority over other Qualified Households in the disbursement of loan funds.

Principal Residence: The place where a person resides on a substantially full-time basis during not less than 10 months per year. Children attending college and not living at home as their Principal Residence may not be counted as a household member.

Program: Activities related to the City of Dublin First Time Homebuyer Loan Program.

Qualified Household: A “Qualified Household” means an Applicant household that satisfies the requirements listed in Section 4 of these Guidelines.

Senior: A person 62 years of age or older for the purpose of qualifying for Preference Points.

Total Household Income: All Gross Household Income and assets received (as calculated pursuant to Section

4.2.1).

Attachment 2
214
2 DEFINITION OF TERMS
First Time Homebuyer Loan Program Guidelines September 3, 2024 4 Veteran: A person who served in the active military, naval, or air service and who was discharged or released therefrom under conditions other than dishonorable, for the purpose of qualifying for Preference Points.

Attachment 2
215
First Time Homebuyer Loan Program Guidelines September 3, 2024 5 3 LOAN TERMS

3.1 Overview of Loan Terms
The terms, requirements, and conditions for loans approved through the FTHLP are outlined in Table 1 and described further below.

Table 1. Loan Terms and Requirements
Term or Requirement Below Market Rate Homes Market Rate Homes Loan Amount Up to 20% of the purchase price, with a
maximum of $100,000.

Up to 20% of the home purchase price,
with a maximum of $100,000.

Interest Rate 3%, simple interest
Loan Term 30 year, deferred payment
Repayment Repayment of principal and interest is due
upon the sale of the property, upon the
formal filing and recording of a notice of
default, or the expiration of the loan term
(whichever is earliest).

Repayment of principal and interest or
equity share is due upon the sale of the
property, payoff, or refinance of the first
mortgage, upon the formal filing and
recording of a notice of default, or the
expiration of the loan term (whichever is
earliest).

Equity Share Loans on BMR homes are subject to an
equity share provision only upon the first
sale of the home following the expiration of
the restricted affordability period.

Upon the events described in “Repayment”
above, Borrowers of loans for market rate
properties are subject to a payment of
either accrued interest or equity share,
whichever is greater. See Section 3.5 for a
description of equity share.

Prepayment Borrower(s) may prepay the Loan at any time without penalty (provided that the payment covers the principal as well as the accrued interest or equity share).

Acceptable Primary
Mortgages
See Section 3.2.

Position on Title/Layered
Financing
The City must be in second position on title, behind only a primary mortgage , except when the borrower is also using other similar County, State, or governmental programs, such as the Alameda County AC Boost, CalHFA, etc., that require a second position on title, at which time the City may subordinate in a third or fourth position on title. Borrowers may utilize assistance loans other than those listed above, but they must be subordinate to the City’s FTHLP loan.

Co-Signatories (not
allowed)
The loan shall contain no co-signatories. Only the approved Borrower’s name(s) may be on the deed.

Fees Applicants are subject to the following fees:

Fee for a credit check, due at the time of application (reimbursement, based on actual cost).

Fee established by City Council resolution for loan underwriting, processing, and servicing, due upon close of escrow.

Attachment 2
216
3 LOAN TERMS
September 3, 2024 First Time Homebuyer Loan Program Guidelines 6 Use of Loan Funds Loan funds may be used for down payment assistance and to pay for non -recurring closing costs associated with the home purchase. Loans may not be used for repairs, room additions, or non-real property purchases.

Property Eligibility Properties must be located in the City of Dublin and may be a single-family home, condominium, or a manufactured home (subject to secondary market eligibility requirements).

Inspection Reports The Applicant must provide home and pest inspection reports (see Section 3.3).

3.2 Financing Requirements
All Applicants must be able to secure a primary home loan through a lending institution. Applicants may use a lender of their choice, provided that the lender adheres to the City’s Guidelines for acceptable loan products.

Applicants must provide a pre-approval letter, truth in lending statement, and good faith estimate from their chosen lender at the time of application for a FTHLP loan.

3.2.1 Acceptable Primary Loan Products
The City reserves the right to deny a loan or reject loan products for primary loans if the City believes in its sole discretion that there is a stronger likelihood that the loan product would potentially result in loss of loan funds due to the purchasers’ inability to comply with the terms of the loan.

Following is a nonexclusive list of the loan products that are generally acceptable to the City. The list is not intended to be exhaustive, and other loan products may be evaluated upon request.

Acceptable Primary Mortgage Loan Products
• Fixed mortgages up to 30 years
• M
aximum 100% combined loan to value

3.2.2 Prohibited Primary Loan Products and Unacceptable Mortgage Features The following loan products and mortgage features are generally unacceptable to the City:
• Interest-only loans
• Negative amortizing loans
• Adjustable rate loans
• Balloon payment loans
• Lines of credit that exceed the resale price of the unit • Stated income loans
• Excessive points and fees (more than what is typical of the market at the time)

3.2.3 Down Payment
The Borrower is required to make a minimum down payment of at least 3% of the sales price. Funds must be placed into escrow prior to the close of escrow and must come from acceptable sources and be verified and properly documented per Federal Housing Administration guidelines.

Attachment 2
217
3 LOAN TERMS
First Time Homebuyer Loan Program Guidelines September 3, 2024 7 3.3 Property Inspection Reports
The Applicant must obtain and provide pest inspection and home inspection reports for the property from licensed professionals. The pest inspection report must confirm that the structure is sound and any noted pest infestations must be resolved as recommended in the report. The home inspection report must cover all major systems, including, but not limited to, electrical, plumbing, drainage, the foundation, paint, and appliances. Reports should be provided to the City as early as possible during the escrow period to ensure funding and a timely close of escrow.

3.4 Recorded Loan Documents
The City will prepare and the Borrower will sign a set of documents that describe agreed-upon loan terms and ongoing Program requirements. These documents will be executed at the close of escrow and recorded on the property’s title. City Staff will discuss the basic provisions of these documents with the Borrower(s) at the in- person consultation prior to the close of escrow; however, Borrowers should review these documents thoroughly prior to signing.

3.4.1 Loan Documents for Below Market Rate Homes
Sample loan documents for FTHLP loans on BMR Units are provided in Exhibits 1, 2, and 3. Documents include the Loan, Occupancy, Refinancing, and Resale Restriction Agreement with Option to Purchase (Exhibit 1), Deed of Trust, Assignment of Rents, Fixture Filing and Security Agreement (Exhibit 2), and Secured Promissory Note (Exhibit 3). BMR Units are also subject to the provisions described in the Guidelines to the Inclusionary Zoning Regulations Ordinance.

3.4.2 Loan Documents for Market Rate Homes
Sample loan documents for FTHLP loans on market rate units are provided in Exhibits 4, 5, and 6. Documents include the Loan and Equity Share Agreement (Exhibit 4), Deed of Trust, Assignment of Rents, Fixture Filing and Security Agreement (Exhibit 5), and Secured Promissory Note (Exhibit 6).

3.5 Equity Share

3.5.1 Below Market Rate Units
BMR Units are not subject to an equity share provision upon resale or prepayment or in the occurrence of default; however, BMR Units must pay an equity share to the City upon the first sale of the property following the expiration of the restricted resale period. This requirement is described in the Guidelines to the Inclusionary Zoning Regulations Ordinance and in the Loan, Occupancy, Refinancing, and Resale Restriction Agreement with Option to Purchase (Exhibit 1).

3.5.2 Market Rate Units
Upon the sale of the property, repayment of the loan (due to a refinance or as an optional prepayment), or the occurrence of any default event, the Borrower must pay the City the loan principal as well as the greater of the accrued simple interest or an equity share. The equity share is based on the amount of the FTHLP loan in proportion to the value of the property and the amount by which the property has increased in value, based on an appraisal or resale purchase contract. The calculation is described in detail in the Loan and Equity Share Agreement in Exhibit 4 and demonstrated in a sample calculation in Example 1.

Attachment 2 218
3 LOAN TERMS
September 3, 2024 First Time Homebuyer Loan Program Guidelines 8 Example 1. Equity Share Calculation
The Borrower purchased a property for $700,000 and the City provided an FTHLP loan of $70,000. The loan amount ($70,000) is equivalent to 10% of the sale price.

The Borrower sells the property 20 years later for $1,100,000. The property has appreciated by $400,000 ($1,100,000 - $700,000 = $400,000).

The City portion of the increased value is 10%, which equals $ 40,000 ($400,000 X 10% = $40,000).

If the $40,000 City share is greater than the accrued simple interest on the loan, the Borrower would owe the City a total of $110,000 ($70,000 in principal and $40,000 in equity share).

Attachment 2
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First Time Homebuyer Loan Program Guidelines September 3, 2024 9 4 HOUSEHOLD QUALIFICATIONS

4.1 Household Qualifications
A household must meet the requirements stated in Table 2 to qualify for a Loan. Section 4.2 provides additional detail on certain requirements.

Table 2. Applicant Household Qualifications
Qualification Requirement Description
Income The household’s Total Household Income must not exceed the i ncome limit set forth in Section 4.2.1.

Assets The household may have no more than $250,000 in total assets, excluding pensions and federally approved pre-tax savings accounts.

First-Time Homebuyer No member of the household may have owned any interest in real property during the three-year period prior to the household’s BMR Unit application date.

Owner Occupancy The household will occupy the unit as its Principal Residence within 6 0 days of the close of escrow on the unit.

Homebuyer Education All title holders of the property must take a HUD or Fannie Mae-approved or City-approved First Time Homebuyer class and receive a certificate of completion. The certificate of completion must be dated within one year of the date of application.

Credit All Applicants have a minimum FICO credit score of 620 (see Section 4.2.2) and must not have filed for bankruptcy in the last three years. Persons with records of deeds-in-lieu of foreclosure or judicial or non-judicial foreclosure are subject to a seven-year waiting period before they may be considered for an FTHLP loan.

Residency/Citizenship All household members must be either a citizen or national of the United States or a qualified alien defined by the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996.

Loan Preapproval Homebuyers must be preapproved for a home loan that conforms to the requirements established in Section 3.2.

Debt to Income Ratio Homebuyers’ proposed debt (based on current liabilities and proposed housing payment) may not exceed 45% of the household’s monthly income (see Section 4.2.4).

Applicant households may request exceptions to qualification requirements. Procedures for exception requests are described in Section 6.

Attachment 2
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4 HOUSEHOLD QUALIFICATIONS
September 3, 2024 First Time Homebuyer Loan Program Guidelines 10 4.2 Description of Qualification Requirements

4.2.1 Household Income

4.2.1.1 Maximum Total Household Income
To be eligible for a FTHLP loan, the Applicant’s Total Household Income must not exceed the current Moderate- Income limit. Total Household Income means the household’s Gross Household Income (see Section 4.2.1.2) plus assets calculated pursuant to Section 4.2.1.4. Maximum Income is determined annually by HCD based on Area Median Income. Table 3 shows the Maximum Income limits for Alameda County for 2024.

Table 3. Program Income Limits by Household Size (2024) Household Size Income Limit
1 person $130,800
2 persons $149,500
3 persons $168,150
4 persons $186,850
5 persons $201,800
6 persons $216,750
7 persons $231,700
8 persons $246,650
Source: HCD State Income Limits for Moderate-Income Households, 2024

4.2.1.2 Gross Household Income
Gross Household Income means all income from all adult household members (18 years of age and older) derived from all sources as provided in the Internal Revenue Code (Title 26, Subtitle A, Chapter 1, Subchapter B, Part I, Section 61), whether or not such income is exempt from federal income tax. Such income includes, but is not limited to, the following:
• Compensation received from an employer. Compensation includes, but is not limited to, salary, overtime pay, and other pay
• Other pay can include, but is not limited to, compensation for special working conditions or one-time pay- out of unused vacation and sick leave
• Alimony, spousal, and child support
• Cash
• Pensions, if at an age where pension is being received as income • Public benefits including, but not limited to, CalWorks, Social Security Income, and disability income • All interest, dividends, and royalties
• Income derived from private businesses
• Rental income
• Income from pensions
Attachment 2
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4 HOUSEHOLD QUALIFICATIONS
First Time Homebuyer Loan Program Guidelines September 3, 2024 11 • Compensation for services rendered including fees, fringe benefits, commissions, tips, and bonuses • Stipend received for participation in a mentor, learning, or education opportunity • Gains from dealings in private and/or commercial property • Gambling winnings
• Annuities, life insurance, and endowment contracts
• Income from discharge of indebtedness
• Gross partnership contributions or distributions
• Income from an interest in an estate or trust
For purposes of determining Gross Household Income, each person 18 years of age or older must present all of the following:
• A complete set of federal and state income tax returns for the past three years, including all schedules (
signed and dated) and W-2 forms (in the case where taxes have not been filed for any of the past three years, a letter of verification of non-filing from the Internal Revenue Service is required). • Four most recent and consecutive pay stubs.
• T
hree recent and consecutive statements for all financial accounts, including, but not limited to, savings accounts, checking accounts, retirement accounts, 401(k) accounts, stock accounts, and other accounts h
eld in the Applicant(s) name(s), whether held individually or together.

If a household member is self-employed, in addition to the information above, the member must submit profit and loss statements for the past three years (if applicable), and a current profit and loss statement for the year.

Exceptions:

1. Gross Household Income does not include income earned by a household member who is between the ages of 18 and 26 and meets both of the following criteria:
• Is claimed as a dependent of a household member on such member’s federal income taxes. • Is a full-time student (12+ units; school transcript must be provided).

2. Gross Household Income does not include payments to a household member from a governmental fund if all of the following requirements are satisfied:
• The payments are based on the recipient’s or the recipient’s family’s financial need. • T
he payments do not represent compensation for services rendered. • The payments are part of a governmental housing subsidy program including, but not limited to, Housing C
hoice Voucher (Section 8) federal housing assistance payments.

4.2.1.3 Income Calculation
a. Wage and Salary. If an Applicant is a full-time employee (usually 30 to 40 hours per week) or an employee with consistent regular hours or income, or income with overtime or adjustments as a regular part of their job, one of the formulas listed in Table 4 will be used to determine the Applicant’s salary. Bonuses, commissions, a
nd limited overtime may be calculated into the annual income calculation. In the case of unclear income or income that is somewhat difficult to calculate, please contact the City. The City will make the final de
termination as to which income calculation formula to use.

Attachment 2
222
4 HOUSEHOLD QUALIFICATIONS
September 3, 2024 First Time Homebuyer Loan Program Guidelines 12 Table 4. Annual Income Calculations by Pay Frequency Pay Frequency Annual Income Calculation
Monthly Monthly income amount x 12
Twice Monthly Twice monthly income amount x 24
Biweekly Biweekly income amount x 26
Weekly Weekly income amount x 52
Hourly Hourly income x 40 (or whatever normal hours per week may be) x 52 b. Variable Income. For Applicants who are part-time employees or employees with variable hours every pay pe
riod (or variable hours less than 40 hours per week), inconsistent income or hours, frequent overtime, bonus
es and commissions, etc., their annual salary will be calculated using year-to-date income, plus the pr
evious year’s income (from same income source or employer), divided by the number of months reviewed (UP
TO BUT NOT EXCEEDING 12 MONTHS) times 12 to arrive at their annual income. If there is no p
revious year income from the same employer, or the job was started mid-year, the current income year to date using the calculation explained in (b) above will be used. If an Applicant works consistently 40 hours per week and has occasional or regular overtime, the calculation listed in (b) above will be used to calculate income.
c. In
consistent or Temporary Change in Income Due to a Temporary Circumstance. If an Applicant has a t
emporary situation (seven months or less) that makes income calculation difficult, a verification of em
ployment may be used to calculate the Applicant’s income based on a normal annual time period. Or, the income may be calculated based on the person’s hourly rate times their normal working hours (as shown in ite
m (b) above).
d. Self-Employed or Non-Corporation. A self-employed Applicant is also considered to have variable income.

Gross annual income calculations will be based on the previous two years’ net income shown on Schedule C of the federal income tax returns, plus net income before taxes from the Applicant’s signed, year-to-date Profit and Loss Statement, divided by the appropriate number of months (NOT TO EXCEED 12 MONTHS) times 12 to arrive at the annual income.

4.2.1.4 Assets
An asset test will be applied to all Applicants to determine whether they satisfy the income requirements. If an Applicant has assets that exceed $30,000, the following amounts will be added to the Applicant’s Gross Household Income to determine the household’s Total Household Income:
• 10% of all assets valued at between $30,001 and $130,000 • 30%
of all assets valued over $130,000
T
he maximum assets allowed are $250,000. Households with assets in excess of $250,000 will be disqualified.

Assets include, but are not limited to, cash, all savings and checking accounts, stocks, bonds, real estate, gifts, and other sources of money. Pensions and federally approved retirement savings accounts, such as IRAs, Roth IRAs, and 401ks, are excluded; however, retired Applicants who receive income from their retirement account must include such income as Gross Household Income on their application. Example 2 illustrates the calculation for determining income with assets.

Attachment 2
223
4 HOUSEHOLD QUALIFICATIONS
First Time Homebuyer Loan Program Guidelines September 3, 2024 13 Example 2. Determining Income with Assets
Example 2.A A household of 3 earns $100,000 a year and has $150,000 in total household assets $150,000 - $30,000 = $120,000 (which is less than $130,000) 10% of $120,000 = $12,000
New Total Household Income: $100,000 + $12,000 = $112,000 Example 2.B A household of 4 earns $150,000 a year and has $200,000 in total household assets $200,000 - $30,000 = $170,000 (which is more than $130,000) 10% of $130,000 = $13,000
30% of balance of $40,000 = $12,000
New Total Household Income: $150,000 + $13,000 + $12,000 = $175,000

4.2.2 Credit Score
A credit check will be conducted on all adults (other than dependents) in the household. Applicants must have sufficient creditworthiness to qualify. Creditworthiness means that:

1. A
ll household individuals shall have a minimum of seven years since Chapter 7 or Chapter 13 bankruptcy d
ischarge date and/or foreclosure or short sale and evidence of reestablished credit is provided.

2. A
ll persons appearing on the mortgage shall have a minimum FICO credit rating of 620 points from all three credit agencies.
4 .2.3 Homebuyer Education Program
Borrower(s) must successfully complete a HUD, Fannie Mae-, or City-approved First Time Homebuyer class prior to the close of escrow and must provide the City with evidence of completion. The completion date must be within one year of the proposed date of loan funding.

4.2.4 Debt to Income Ratio
Applicant(s) must have a debt to income ratio of no greater than 45%. This is determined by calculating the Applicants’ monthly debt obligations, including (but not limited to) estimated monthly housing expenses, car payments, and other loan obligations and comparing it to the Applicants’ monthly Household Income.

Student loan debt may be excluded from the monthly debt obligation calculation if the Applicant can provide documentation that repayment of the loan is deferred for a period of at least three years from the application date.

4.2.5 Preference Points
The Preference Point system provides priority to certain households who are deemed to have a priority need for housing in Dublin. Priority criteria are shown in Table 5. Loans may be approved for households who are not eligible for any Preference Points.

Preference Points vary based on category and do not distinguish between adults and children. See Table 5 for details and requirements. If two persons in the household qualify for Preference Points for the same category, the maximum preference points for that category would be two points. For example, if a husband and wife are both employed in Dublin, the couple receives only 2 Preference Points for being employed in Dublin. However, if two Seniors make up a household, they would be entitled to only 1 Preference Point, as that category has a maximum of one preference point for household.

Preference Points
Attachment 2
224
4 HOUSEHOLD QUALIFICATIONS
September 3, 2024 First Time Homebuyer Loan Program Guidelines 14 Priority Points Proof Required
Employed in Dublin 3 points
maximum,
one per
household
member
Copy of recent pay stub establishing employment in Dublin; If self-employed in Dublin, then the business must have a current City business license.

Must have been employed within the City of Dublin for at least six months.

Public service employee in
Dublin*
1 per
household
Copy of recent pay stub or letter from employer, on company letterhead, establishing public service in Dublin; or
For a newly hired teacher at a state-accredited school, who will be working in Dublin, a copy of employment contract; and
A letter from employer confirming employment and employer contact information.

Resides in Dublin 3 points
maximum,
one per
household
member
Copy of utility bill (PG&E or water), showing the Applicant with a Dublin address; or
Copy of a current rental agreement.

Must have been a resident of the City of Dublin for at least one-year.

Seniors (62 and over) 1 per
household
A valid state driver license; or
A valid state identification card (with photo); or
A valid passport.

Permanently disabled 1 per
household
Doctor’s note confirming that Applicant is permanently disabled; or Other verification from a state agency establishing permanent disability status; or
Verification of receipt of SSI or SSDI.

Veteran 1 per
household
A military department record of service such as an original military service record or certified copy. The document must contain the length, time, and character of the service.

Has an immediate family member
who is a Dublin resident
1 per
household
Copy of utility bill (PG&E or water), showing the immediate family member with a Dublin Address; or
Copy of the immediate family member’s current rental agreement; and Copy of birth certificates for self and immediate family member, establishing relationship; or
Other legal document establishing relationship.

Must move because housing is to
be demolished or converted to
condo
1 Letter from apartment owner or management firm verifying the imminent condominium conversion or demolition of the unit; and Confirmation from the City’s Community Development Department. * A public service employee is a person who is employed by a public agency such as the City of Dublin, a firefighter or police officer assigned to work in Dublin, BART, DSRSD, or USPS working in Dublin.

Attachment 2
225
First Time Homebuyer Loan Program Guidelines September 3, 2024 15 5 Procedures

5.1 Loan Application, Approval, and Funding
Procedures
The following are the general steps for qualifying for and finalizing a loan (see Figure 1 for an overview):

1. Review qualification requirements. Potential
A
pplicants should review these Guidelines and
c
onfirm that they meet established qualification
r
equirements (see Section 4).

2. Pr
e-qualify with a lender. Potential Applicants
should work with a lender of their choosing to get
pre-qualified to purchase a home. Potential
financing must meet the requirements described in
Se
ction 3. This will be necessary for preparing a
c
omplete application and will give the buyers a
c
lear understanding of the amount of money they
ar
e eligible to borrow for a home purchase. The
City is available to speak with lenders to clarify
Program terms and requirements.

3. Homebuyer education. Potential Applicants must
c
omplete a First Time Homebuyer Class (see
Se
ction 4.2.3)

4. Execute a purchase contract. Potential
A
pplicants should work with a real estate agent to
find a desirable home for sale in the City. Homes
m
ay be BMR Units (most available BMR Units
ar
e listed on the City’s website) or market rate
pr
operties. Prepare an offer and execute a purchase
a
greement on the home of your choosing.

5. Subm
it a FTHLP application. Prepare and
submit a complete FTHLP application packet to
t
he City’s Housing Division. Be sure to include
s
upporting documentation for income and asset
verification (contact City Staff or view the City’s
w
ebsite for an application package). The
a
pplication should be submitted at least four weeks
prior to the scheduled close of escrow.

6. Ci
ty Staff/Loan Committee review and
qua
lification determination. The City will make
every effort to review the application and
q
ualification materials and determine eligibility
within 10 working days of receipt of a complete

9. Borrower signs City documents at close of
es
crow

8. City provides escrow instructions and releases
funds and submits loan documents when
r
equirements are met

7. If qualified, meet with the City

6. City review and qualification, within 10 days of
receipt of complete application

5. Submit an FTHLP application

4. Choose a home in Dublin and execute a
p
urchase contract

3. Complete a homebuyer education class
(see Section 4.2.3)

2. Pre-q ualify for a primary home loan (see
financing requirements in Section 3)

1. Review qualification requirements (see S ection
4)
Figure 1. Loan Application Process
Attachment 2
226
5 PROCEDURES
September 3, 2024 First Time Homebuyer Loan Program Guidelines 16 application. The application will be considered by City Staff in the Housing Division (to determine application completeness and basic qualification) and the City’s Loan Committee. If approved, the City will send the Applicant a conditional approval letter. Applicants who are determined to be ineligible will receive a denial letter.

7. Buyer consultation. All adult members of the approved Borrower household must schedule and c
omplete a consultation with City Staff to discuss loan terms, restrictions, and ongoing requirements. At the meeting, Borrowers will review and sign a truth in lending statement and a good faith estimate.

8. L
oan documents. Following completion of the consultation, City Staff will prepare escrow instructions and submit them to the escrow officer. The instructions will describe the documentation the City will ne
ed in order to prepare loan agreements and fund the loan. Documents will include (but may not be limited to) a title report, home and pest inspection reports, an appraisal, and documents regarding the primary loa
n.

9. Si
gn paperwork. Following receipt of required paperwork from the escrow company, the City will prepare the appropriate loan documents for the Borrower to sign at closing (see Section 3.4). Once the Borrower has signed, the paperwork will be delivered to the City for signature. The City will forward this paperwork as well as a request for notice of default on the Borrower’s primary loan to the escrow officer for recordation.

10. M
onitoring and correspondence. The Borrower must complete annual surveys to the City and should c
ontact City Staff with any questions. Any default on the signed agreements may result in the City calling the loan due immediately. Borrowers must contact the City when contemplating a sale or refinance.

5.2 Pre-Qualification
The City will accept applications for preliminary review and pre-qualification. This review will confirm that the Applicant meets the qualifications described in Section 4, with the exception of the debt-to-income ratio, which cannot be determined until the City is provided with an estimate of monthly housing costs for a specific home.

Applications for pre-qualification are subject to costs to reimburse the City’s direct cost to obtain a credit report.

Pre-qualification applications are reviewed by City Staff in the Housing Division but are not reviewed by the Loan Committee. Following the review, City Staff will issue a letter of eligibility. Note that Program funding is limited and a letter of eligibility does not guarantee that funds will be available to the Applicant if/when they are requested.

5.3 BMR Unit Refinancing
BMR Unit Borrowers may keep the FTHLP loan intact through a refinance, provided that the new loan meets City standards. BMR Unit Borrowers must notify the City of their intent to refinance and follow the refinance procedures outlined in the Guidelines to the Inclusionary Zoning Regulations Ordinance.

Attachment 2
227
5 PROCEDURES
First Time Homebuyer Loan Program Guidelines September 3, 2024 17 5.4 Loan Payoffs
Market rate home Borrowers must pay off the FTHLP loan
in the event of a refinance or resale and have the option to prepay the loan at any time. BMR Unit Borrowers must
pay off the FTHLP loan in the event of a resale and have the option to pay off the loan during a refinance or may choose to prepay the loan at any time. An overview of the payoff process is outlined in Figure 2.

The following are the general steps for the loan payoff process (see Figure 2 for an overview):

1. Provide notice and documentation. The
Borrower must provide the City with the
following:
a. A written notification of the Borrower’
s
i
ntended action.
b. A current property appraisal or a resal e
p
urchase contract.
c. T
he name and contact information of the escrow officer managing the transaction, as well as an e
scrow number.

2. C
ity prepares payoff demand. The City will calculate the accrued interest and equity share, if applicable, and prepare a payoff demand for the greater of the two. The equity share calculation is de
scribed in Section 3.5. The City will provide a copy of the payoff demand to the Borrower and submit t
he demand to the escrow officer.

3. Funds disbursed to the City. The escrow officer will disburse repayment funds to the City as stated in the payoff demand upon the close of the transaction.

4. R
elease and reconveyance. The City will prepare appropriate documents to release the loan documents (as described in Section 3.4) from the property.

Figure 2. Loan Payoff Process

4. The City releases loan-related restrictions from
the property

3. Repayment funds are disbursed to the City at
t
he close of the transaction

2. The City prepares a payoff demand and
provides it to the escrow officer

1. Notify the City of your intended action
(refinance, resale, or prepayment) and required
information
Attachment 2
228
First Time Homebuyer Loan Program Guidelines September 3, 2024 18 6 Exceptions
Any applicant believing that his/her situation warrants an exception to any part of these Guidelines due to
circumstances outside of his/her household’s control, such as refugee status, special needs, or other hardships or special circumstances, may request an exception by
submitting a written letter to the City prior to submitting an application of any kind. The exception request
procedure is outlined in Figure 3.

The exception request must specify which particular
guideline or requirement the household cannot meet for
reasons beyond their control or other valid reasons, and/or describe the household’s unique circumstances which
warrant one or more specific exceptions to be identified in the letter, referencing the page(s) and section(s) of these Guidelines and/or application form related to the request.

Exceptions related to disabilities (reasonable
accommodations) may be requested according to this procedure, with a brief description of the exception(s) needed due to the Applicant’s disability. Such requests will be handled in accordance with the City’s reasonable accommodations policy and these Guidelines.

Exceptions will be considered by City Staff, including authorized persons in the Housing Division and/or members of the Loan Committee. The City will provide a letter response within 10 calendar days, stating whether the requested exception can be granted in full or part and the reason for such decision.

3. City Staff (Housing Division and/or Loan
Committee) review and response (within 10 days)

2. Submit exceptions request letter to the City

1. Review requirements and regulations
Figure 3. Exception Request Procedure
Attachment 2
229
EXHIBIT 1. LOAN, OCCUPANCY, REFINANCING, AND RESALE RESTRICTION

AGREEMENT WITH OPTION TO PURCHASE
Exhibit 1_FTHLP_BMR_LORRA-2024 Page 1 Rev 8|2024
Recording requested by and when
recorded mail to:

City of Dublin
100 Civic Plaza
Dublin, CA 94568
Attn: City Clerk

EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383

Space above this line for Recorder’s Use

LOAN, OCCUPANCY, REFINANCING AND RESALE RESTRICTION AGREEMENT

WITH OPTION TO PURCHASE

City of Dublin First-Time Homebuyer Program
(Inclusionary Units)

NOTICE: THIS DOCUMENT CONTAINS RESTRICTIONS ON THE USE, SALE AND REFINANCING OF THIS PROPERTY.

This Loan, Occupancy, Refinancing and Resale Restriction Agreement with Option to Purchase (this “Agreement”) is entered into as of Date of Signing and Borrower(s) Name (collectively, “Owner”) regarding certain improved real property located at Property Address , Dublin, California 94568, and further described in Exhibit A attached hereto (the “Property”).

RECITALS

WHEREAS, to further its goal of creating affordable home ownership opportunities for low- and moderate- income persons and families, the City has initiated a First- Time Homebuyers Program (the “ Program”) pursuant to which the City provides deferred payment loans to assist first-time buyers to purchase homes in the City of Dublin at a restricted below-market price;

WHEREAS, Owner qualifies as an eligible low - or moderate- income purchaser under the Program, has certified that Owner intends to live in the Property as an owner occupant, and has agreed to maintain the Property as Owner’s Principal Residence (as defined below);

WHEREAS, pursuant to the Program (i) Owner will purchase the Property at a below -market price, and (ii) City will provide a low -interest, deferred payment loan (the “Loan”) to Owner upon the terms and conditions set forth herein. The Loan will be evidenced by a Secured Promissory Note executed by Owner and dated as of the date hereof (the “Note”) and secured by a Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing executed by Owner, dated as of the date hereof, and recorded against the Property substantially concurrently herewith in the Official Records of Alameda County (the “Deed of Trust”);

WHEREAS, in order to maintain and preserve the Property as housing affordable to low - and moderate- income households consistent with the goals of the Program, it is necessary to restrict the use and resale of the Property through imposition of the occupancy and resale restrictions set forth herein. These restrictions are intended to prevent initial and subsequent purchasers from using the Property for purposes incompatible with the Program and realizing unwarranted gains from sales of the Property at unrestricted prices. The restrictions set forth in this Agreement Attachment 2
230
EXHIBIT 1. LOAN, OCCUPANCY, REFINANCING, AND RESALE RESTRICTION

AGREEMENT WITH OPTION TO PURCHASE
Exhibit 1_FTHLP_BMR_LORRA-2024 Page 3 Rev 8|2024

“ Owner” is defined in the preamble to this Agreement.

“ Permitted Transfer” is defined in Section 4.3.1.

“Principal Residence” means the place where a person resides on a substantially full -time basis during not less than ten (10) months per year.

“ Program” is defined in the Recitals.

“ Property” is defined in the preamble to this Agreement.

“ Resale Restrictions” means collectively, the restrictions upon the sale price of the Property as set forth in Sections 4.1, 4.3, 12 and 13 and the requirement that the Property may only be conveyed to an Eligible Household, a permitted transferee or the City as more particularly set forth in Section 4.1.

“ Term of the Resale Restrictions and Option” means in perpetuity / 55 years/ 30 years commencing upon the date the unit was placed into service as an inclusionary unit (original owner’s date of signing).

“ Transfer” is defined in Section 4.3.

2. Loan. City has agreed to provide a loan in the amount of loan amount written dollars ($00,000) (the “Loan”) upon the terms and conditions set forth in the City Documents to assist Owner to purchase the Property. Owner acknowledges that the City Documents provide for, among other requirements, owner -occupancy requirements, restrictions on assignment of the Loan, and restrictions on refinancing of the Property. As more particularly set forth herein and in the Note, the Loan terms include the following:

(a) Interest Rate. Interest accrues on the principal balance of the Loan commencing upon the date of origination of the Note at the rate of three percent (3%) simple interest per annum.

(b) Loan Term; Due on Sale. The entire principal balance of the Loan together with all interest and other sums accrued pursuant to the City Documents is due and payable in full in one lump sum upon the earliest of: (i) the thirtieth (30 th) anniversary of the date of the Note, (ii) the sale , or other transfer of the Property (other than as permitted pursuant to the City Documents ), or (iii) the refinancing of any senior mortgage secured by the Property which results in “cash out” to Owner, or (iv) the occurrence of an Event of Default.

(c) Due Upon Refinancing: The Loan is payable in full upon the refinancing of any mortgage secured by the Property in violation of the City Documents or upon the encumbrance of the Property in violation of the City Documents. Section 4.4 of this Agreement provides further information regarding restrictions on the refinancing and encumbrance of the Property.

(d) Prepayment. The Loan may be prepaid in full at any time without penalty or premium provided that all interest and other sums payable pursuant to the City Documents are paid in full. The City’s option to purchase the Property pursuant to this Agreement and the resale, occupancy and other restrictions set forth in this Agreement survive the repayment or prepayment of the Loan.

(e) Occupancy and Resale Restrictions. The restrictions on the resale price of the Property, the occupancy restrictions, and City’s option to purchase the Property (as more fully described below) shall continue for in perpetuity/ 55 years/ 30 years commencing upon the date the unit was placed into service Attachment 2
231
EXHIBIT 1. LOAN, OCCUPANCY, REFINANCING, AND RESALE RESTRICTION

AGREEMENT WITH OPTION TO PURCHASE
Exhibit 1_FTHLP_BMR_LORRA-2024 Page 4 Rev 8|2024
as an inclusionary unit (original owner’s date of signing) , regardless of any prepayment or repayment of the Loan.

3. Owner Representations, Warranties and Covenants. Owner hereby represents, warrants and covenants that all of the following are true: (i) the financial and other information provided to City in order to qualify to purchase the Property is true and correct as of the Effective Date; (ii) Owner is a first time homebuyer as described in the City of Dublin First-Time Homebuyer Program Guidelines; and (iii) Owner will fully cooperate by promptly providing to the City all information requested by the City to assist in monitoring Owner's compliance with this Agreement.

3.1 Maintenance and Insurance Requirements

3.3.1 Maintenance.
(1) The Owner shall maintain the Property, including landscaping, in good repair and in a neat, clean and orderly condition (and, as to landscaping, in a healthy condition) and in accordance with all applicable laws, rules, ordinances, orders and regulations of all federal, state, county, municipal, and other governmental agencies and bodies having or claiming jurisdiction and all their respective departments, bureaus, and officials. Owner will not commit waste or permit deterioration of the Property, and shall make all repairs and replacements necessary to keep the Property in good condition and repair.

Failure by the Owner to maintain the Property shall constitute a default under this Agreement for which the City may exercise the remedies provided to City hereunder, including without limitation, the City Option to purchase the Property.

(2) In the event that the Owner breaches any of the covenants contained in this Section 3.1 and such default continues for a period of ten (10) days after written notice from the City with respect to graffiti, debris, waste material, and general maintenance or thirty (30) days after written notice from the City with respect to landscaping and building improvements, then in addition to any other remedy City may have at law or in equity, City shall have the right to enter the Property and perform or cause to be performed all such acts and work necessary to cure the default. Pursuant to such right of entry, the City shall be permitted (but is not required) to enter the Property and perform all acts and work necessary to protect, maintain, and preserve the improvements and landscaped areas, and to attach a lien on the Property, or to assess the Property, in the amount of the expenditures arising from such acts and work of protection, maintenance, and preservation by the City and/or costs of such cure, which amount shall be promptly paid by the Owner to the City, plus an administrative charge equal to fifteen percent (15%) of the cost of such work upon demand.

3.3.2 Insurance. The Owner shall maintain a standard all risk property insurance policy equal to the replacement value of the Property (adjusted every five (5) years by appraisal, if requested by City) naming the City and its elected and appointed officers, officials, employees, representatives and agents as additional insureds. Additional insurance requirements are set forth in the Deed of Trust. The Owner shall provide the City with evidence of required insurance coverage upon City’s request.

4. Program Requirements.

4.1 Affordability Restrictions. Owner hereby covenants and agrees that during the T erm of the Resale Restrictions and Option, the Property shall be sold or otherwise transferred only in accordance with the terms and conditions set forth herein and only to (i) Eligible Households at a price not to exceed the Adjusted Resale Price, (ii) a permitted transferee pursuant to Section 4.3 .1, or (iii) the City pursuant to the exercise of the Option or otherwise in accordance with the terms hereof.

4.2 Principal Residence Requirement. Owner covenants and agrees that Owner shall occupy the Property as Owner’s Principal Residence throughout the period of time that Owner owns the Property, and shall not Attachment 2
232
EXHIBIT 1. LOAN, OCCUPANCY, REFINANCING, AND RESALE RESTRICTION

AGREEMENT WITH OPTION TO PURCHASE
Exhibit 1_FTHLP_BMR_LORRA-2024 Page 5 Rev 8|2024
rent or lease the Property or portion thereof during the Term of the Resale Restrictions and Option. Owner shall occupy the Property as Owner's Principal Residence within sixty (60) days of close of escrow for the Property. Owner shall be considered as occupying the Property as a Principal Residence if the Owner is living in the Property for at least ten (10) months out of each calendar year. Upon request of City made from time to time, Owner shall provide a written certification to the City, in form provided by City, that Owner is occupying the Property as Owner’s Principal Residence and that Owner is not renting or leasing the Property to another party, and shall provide such documents and other evidence as City may reasonably request to verify compliance with the requirements of this Section. During the Term of the Resale Restrictions and Option, successor owners of the Property shall be obligated to use the Property as such successor’s Principal Residence for the duration of the successor’s ownership.

4.3 Restrictions on Transfer and Resale. Except as provided in Section 4.3.1, throughout the Term of the Resale Restrictions and Option, the Property may only be sold or otherwise conveyed only to Eligible Households at a price not to exceed the Adjusted Resale Price. As more particularly described in Section 13, the Adjusted Resale Price may not exceed the Affordable Unit Cost. There shall be no Transfer of the Property without City’s certification that the transferee is an Eligible Household and that the Property is being transferred at a price not to exceed the Adjusted Resale Price. “Transfer” means any sale, assignment or transfer, voluntary or involuntary, of any interest in the Property. Any sale or other Transfer of the Property in violation of the requirements of this Section is prohibited and shall constitute an Event of Default and an Option Event entitling City to exercise its Option to purchase the Property.

4.3.1 Permitted Transfers. Provided that the transferee assumes, within 30 days following written request by City, all of Owner’s duties and obligations under this Agreement pursuant to a written assumption agreement in a form acceptable to City, or at City’s election, execution of an agreement substantially similar to this Agreement, t he following transfers (“Permitted Transfers”) of title to the Property, or of any estate or interest therein shall not trigger the exercise of the Option and shall not be considered Option Events : (i) a transfer by devise or inheritance to Owner's spouse or domestic partner following the death of Owner ; (ii) a transfer by Owner to a spouse or domestic partner where the spouse or domestic partner becomes the co - owner of the Property ; (iii) the transfer of title to a spouse as part of a divorce or marriage dissolution proceeding; and (iv) a transfer by Owner into an inter vivos trust in which the Owner is a beneficiary; provided however, in every case: (a) written notice of each such transfer shall be provided to City, and (b) Owner shall continue to occupy the Property as his or her principal place of residence (except where the transfer occurs pursuant to subsection (i) or (iii) above, in which event the transferee shall owner -occupy the Property).

Notwithstanding any Permitted Transfer, the Option shall remain effective with respect to the Property for the duration of the Term of the Resale Restrictions and Option.

For purposes of this section, "domestic partner" shall mean two unmarried people, at least eighteen (18) years of age, who have lived together continuously for at least one year and who are jointly responsible for basic living expenses incurred during their domestic partnership. Domestic partners may not be persons related to each other by blood or adoption such that their marriage would be barred in the state of California. For purposes of this section, an individual shall be considered a domestic partner of Owner upon presentation of an affidavit or other acceptable evidence by Owner to the City.

4.3.2 Inheritance. In the event a Transfer occurs by devise or inheritance due to death of the Owner, the administrator of the Owner's estate or the person inheriting the Property shall provide written notice to the City of the Owner's death within thirty (30) days of the date of death, and the following procedures shall apply:

(i) If the person inheriting the Property (the "Inheriting Owner") is the child or stepchild of the deceased Owner (an "Inheriting Child"), he or she shall provide the City with documentation that he or she is the child or stepchild of the deceased Owner together with income information, to be verified by the City, so that the City may determine if the Inheriting Child is an Eligible Household. If the Inheriting Child fails to Attachment 2
233
EXHIBIT 1. LOAN, OCCUPANCY, REFINANCING, AND RESALE RESTRICTION

AGREEMENT WITH OPTION TO PURCHASE
Exhibit 1_FTHLP_BMR_LORRA-2024 Page 6 Rev 8|2024
provide required documentation of his or her relationship to the Owner or financial information, he or she shall be deemed not to qualify as an Inheriting Child and/or Eligible Household, as applicable. If the Inheriting Child qualifies as an Eligible Household, he or she shall succeed to the Owner's interest and obligations under this Agreement, the City Note, and the City Deed of Trust , and new documents shall be executed between the Inheriting Child and the City and recorded against the Property . If the Inheriting Child fails to qualify as an Eligible Household, he or she shall be required to Transfer the Property t o an Eligible Household at a price not exceeding the Adjusted Resale Price, pursuant to the procedures set forth in this Agreement and the City may exercise its Option; provided however, the Inheriting Child may occupy the Property for up to twelve (12) months provided that the Inheriting Child remains in compliance with the requirements of this Agreement and the Deed of Trust.

(ii) If the Inheriting Owner is not the child or stepchild of the deceased Owner, he or she shall Transfer the Property to an Eligible Purchaser at a price not exceeding the Adjusted Resale Price, pursuant to the procedures set forth in this Agreement, and the City may exercise its Option. In this event, the Inheriting Owner shall provide the City with a Notice of Intent to Transfer within sixty (60) days of the date of death of the Owner.

(iii) Failure of an Inheriting Owner to follow the procedures and file the notices described in this Section 4.3.2 shall constitute an Event of Default under this Agreement, and the City may then exercise any of the remedies set forth in this Agreement or available to City under law or equity, including, without limitation, exercise of the City Option.

4.3.3 Changes to Title. Notwithstanding Sections 4.3.1 and 4.3.2 above, Owner shall obtain City's written approval prior to making any changes to the title of the Property, including but not limited to, the addition or deletion of the names of any person to or from title to the Property.

4.4 Restrictions on Financing Secured by Property. Owner shall permit no mortgage, deed of trust or other security instrument to be recorded against the Property other than the following: (i) a fixed rate conventional mortgage with a term of up to 30 years , (ii) any California Housing Finance Agency ("CalHFA") product; (iii) the City Documents, (iv) other loan products approved by City, and ( v) encumbrances permitted pursuant to Sections 4.4.1 through 4.4.3.

4.4.1 Initial Financing . Owner's aggregate purchase money financing for the Property ("Initial Financing") shall not exceed an amount equal to one hundred percent (100%) of the Base Resale Price calculated as provided in Section 12.

4.4.2 Junior Loans. Mortgage loans or equity lines of credit junior in lien priority to the Deed of Trust are not permitted, except when expressly approved by the City in writing. The City shall only approve junior mortgage loans or equity lines of credit as follows:

i. the loan or equity line of credit does not cause the Property’s loan to value ratio (calculated by comparing the total debt secured by the Property to the Adjusted Resale Price of the Property ) to exceed 100%.

ii. the proceeds of such loan or equity line of credit are used only for Eligible Capital Improvements; and

iii. the total outstanding balance of principal and any accrued interest on all loans secured by the Property does not exceed the Adjusted Resale Price.

Attachment 2
234
EXHIBIT 1. LOAN, OCCUPANCY, REFINANCING, AND RESALE RESTRICTION

AGREEMENT WITH OPTION TO PURCHASE
Exhibit 1_FTHLP_BMR_LORRA-2024 Page 7 Rev 8|2024
In the event that the encumbrance of the Property by a junior mortgage results in “cash out” to Owner in violation of this Agreement, the Loan shall be due and payable.

4.4.3 Restrictions on Refinancing. Any prepayment and refinance of the Initial Financing shall not be permitted unless expressly approved by the City in writing, and the City may approve such refinancing only if all of the following conditions are met:

i. the refinance reduces Owner's interest rate and monthly payments of principal and interest on the Initial Financing or shall be used to finance Eligible Capital Improvements;

ii. the refinance does not cause the principal amount of all debt secured by the Property to exceed the then outstanding balance (plus refinancing and closing costs) of the Initial Financing plus the cost of any Eligible Capital Improvements that shall be made by Owner;

iii. the refinance does not result in Owner receiving any cash from the refinance except for Eligible Capital Improvements;

iv. the refinance does not cause the Property’s loan to value ratio (calculated by comparing the total debt secured by the Property to the Adjusted Resale Price of the Property ) to exceed 100% if the Owner does not receive any cash from the refinance or 97% if the Owner receives cash from the refinance for Eligible Capital Improvements.

v. the total outstanding balance of principal and any accrued interest on all loans secured by the Property does not exceed the Adjusted Resale Price.

In the event that the refinancing of any senior mortgage secured by the Property results in “cash out” to Owner in violation of this Agreement, the Loan shall be due and payable.

For purposes of this Section 4.4, the Adjusted Resale Price shall be calculated by the City pursuant to Section 13 of this Agreement as of the earlier of (a) the date on which the deed of trust or mortgage securing the new mortgage is filed for recordation in the Official Records of the County of Alameda, or (b) the date the City receives Notice of Intent to Transfer pursuant to Section 7.1)

5. Grant of Option to Purchase; Assignment of Option. Owner hereby grants to the City an option (“ Option”) to purchase the Property at the Adjusted Resale Price upon the occurrence of an Option Event, subject to the terms and conditions contained herein. The City may assign the Option to another government entity, a non -profit affordable housing provider, or a person or family who qualifies as an Eligible Household. The assignment of the Option shall not extend any time limits contained herein with respect to the Option exercise period or the period within which the Property must be purchased following exercise of the Option.

6. Events Giving Rise to Right to Exercise Option. The City shall have the right to exercise the Option upon the occurrence of any of the following events (each, an “Option Event”):

(a) Receipt of a Notice of Intent to Transfer;

(b) Any actual, attempted or pending sale, conveyance, transfer, lease or other attempted disposition of the Property or of any estate or interest therein, except as provided in Section 4.3.1;

(c) Any actual, attempted or pending encumbrance of the Property, including without limitation by mortgage, deed of trust, judgment lien, mechanics lien, or tax or other lien, except as provided in Section 4.4 and the subsections thereof;
Attachment 2
235
EXHIBIT 1. LOAN, OCCUPANCY, REFINANCING, AND RESALE RESTRICTION

AGREEMENT WITH OPTION TO PURCHASE
Exhibit 1_FTHLP_BMR_LORRA-2024 Page 8 Rev 8|2024

(d) Recordation of a notice of default and/or notice of sale pursuant to California Civil Code section 2924 (or successor provisions) under any deed of trust or mortgage with a power of sale encumbering the Property;

(e) Commencement of a judicial foreclosure proceeding regarding the Property;

(f) Execution by Owner of any deed in lieu of foreclosure transferring ownership of the Property;

(g) Commencement of a proceeding or action in bankruptcy, whether voluntary or involuntary, pursuant to Title 11 of the United States Code or any other bankruptcy statute, or any other insolvency, reorganization, arrangement, assignment for the benefit of creditors, receivership or trusteeship, concerning the Owner; or

(h) The occurrence of an Event of Default as described in Section 23.1.

7. Notice of Intended Transfer; Consent to Transfer; Exercise of Option.

7.1 Notice of Intent to Transfer. If Owner desires to sell, convey, transfer, lease, encumber or otherwise convey the Property or any estate or interest therein (other than pursuant to Sections 4.3.1, 4.4.1 through 4.4.3), Owner shall deliver written notice to City of such intent (“Notice of Intent to Transfer ”) by certified mail not less than 45 days prior to the date of such proposed sale, conveyance, transfer, lease, encumbrance or disposition. The Notice of Intent to Transfer shall state the street address of the Property, Owner's full name or names, the address and telephone number at which Owner may be contacted if not at the Property; and shall be delivered personally or deposited in the United States mail, postage prepaid, certified-return receipt requested, addressed to the City of Dublin, 100 Civic Plaza, Dublin, California 94568, Attn: Housing Division. The Notice of Intent to Transfer shall be in substantially the form attached hereto as Exhibit B or such substitute form in use by City at such time. In the case of a proposed sale of the Property to an identified prospective purchaser, the Owner shall submit to the City, together with the Notice of Intent to Transfer, a copy of the prospective purchaser's income certification, and all other information reasonably requested by City to establish that the prospective purchaser is an Eligible Household, in a form approved by the City, along with the income certification to be provided to any lender making a loan to the prospective purchaser, a copy of the proposed sales contract and all related documents setting forth the terms of sale, the name of th e title c ompany and escrow information. The City or its authorized designee may require the prospective purchaser to provide documentation evidencing and supporting the income and other financial information contained in the certifications.

7.2. Notice of Exercise. Upon the occurrence of any Option Event, the City may exercise its Option by delivering, within the time period specified in Section 7.4, notice (“Notice of Exercise” ) to Owner of City’s intent to exercise the Option. The Notice of Exercise may be in the form attached hereto and incorporated herein as Exhibit C or in such other form as the City may from time to time adopt. The Notice of Exercise shall be delivered by deposit in the United States mail, postage prepaid, first-class, addressed to Owner at the Property, or at such other address as may be indicated on the Notice of Intent to Transfer, and delivery shall be deemed effective five (5) calendar days following the date of deposit. If the Option Event relates to the potential foreclosure of a mortgage, then the City shall also deliver the Notice of Exercise to the mortgagee or beneficiary under such mortgage, at such mortgagee's or beneficiary's address of record in the Official Records of Alameda County and the City shall not complete the purchase of the Property if the default is cured within the time periods permitted by law.

7.3 Notice of Consent to Transfer. If the Option Event involves a transfer of the Property and the City does not exercise the Option, the City may consent to the transfer (“Consent to Transfer”) provided all of the following requirements are satisfied: (i) the proposed purchaser qualifies as an Eligible Household; (ii) the sale of the Property is at a price not to exceed the Adjusted Resale Price; (iii) the proposed purchaser executes a Disclosure Statement in Attachment 2
236
EXHIBIT 1. LOAN, OCCUPANCY, REFINANCING, AND RESALE RESTRICTION

AGREEMENT WITH OPTION TO PURCHASE
Exhibit 1_FTHLP_BMR_LORRA-2024 Page 9 Rev 8|2024
the form attached hereto as Exhibit D or such other form or forms as may be promulgated by the City; (iv) the proposed purchaser executes an agreement substantially similar to this Agreement in a form approved by the City and such substitute agreement is recorded in the Official Records of Alameda County concurrently with the close of escrow for the sale of the Property (provided however, the Term of the Resale Restrictions and the Option will be for that portion of such term remaining as of the date of close of escrow for the sale of the Property to the prospective purchaser); (v) if the proposed purchaser will be obtaining a Program loan, the proposed purchaser executes and delivers a promissory note in form approved by City and the proposed purcha ser executes a deed of trust substantially in the form of the Deed of Trust in a form approved by the City and such deed of trust is recorded concurrently with the close of escrow for the sale of the Property; and (vi) if the proposed purchaser will not be obtaining a Program loan, the proposed purchaser executes a Performance Deed of Trust in form provided by City and such Performance Deed of Trust is recorded concurrently with the close of escrow for the sale of the Property. The Performance Deed of Trust will secure the performance of the resale, refinancing, and occupancy restrictions set forth herein, the other obligations of the Property owner, and the obligation for payment of the City’s Equity Share in connection with the first sale of the Property following the expiration of the Term of the Resale Restrictions and Option.

If the prospective purchaser (i) fails to qualify as an Eligible Household, or (ii) fails to execute and deliver any of the required documents specified above within the time period set forth in the Consent to Transfer, then the Consent to Transfer shall expire, and the City may, at its option, either notify Owner of the disqualification, thereby entitling Owner to locate another purchaser who qualifies as Eligible Household, or City may exercise the Option, as if no Consent to Transfer had been delivered.

7.4 Time Period for Notice. The City shall deliver a Consent to Transfer, if applicable, not later than thirty (30) days after the date that it receives notification of an Option Event. The City shall deliver a Notice of Exercise, if applicable, on or before the date which is the later to occur of the following: (i) thirty (30) days after the date that the City receives notification of an Option Event or (ii) fifteen (15) days after a Consent to Transfer has expired; provided, however, that if the City delivers a Notice of Exercise to Owner upon occurrence of an Option Event described in Paragraphs 3.c.iv, 3.c.v, or 3.c.vi, the City shall deliver the Notice of Exercise on or before sixty (60) days after the date that the City receives notice of the Option Event, and the City or its assignee shall close escrow for the purchase of the Property no later than 90 days after the date the City receives notification of such Option Event, unless extended by mutual agreement of Owner and the City. For purposes of computing commencement of the delivery periods, the City shall be deemed to have received notification of an Option Event on the date of delivery of a Notice of Intent to Transfer, pursuant to the terms of Paragraph 17 below or on the date it actually receives notice of default, summons and complaint or other pleading, or other writing specifically stating that an Option Event has occurred. The City shall have no obligation to deliver a Notice of Exercise or Consent to Transfer, and the applicable time period for exercise of the Option shall not commence to run, unless and until the City has received notification of an Option Event in the manner specified in this subparagraph. If there is a stay or injunction imposed by court order precluding the City from delivering its Consent to Transfer or Notice of Exercise within the applicable time period, then the running of such period shall cease until such time as the stay is lifted or the injunction is dissolved and the City has been given written notice thereof, at which time the period for delivery of a Consent to Transfer or Notice of Exercise shall again begin to run.

7.5 No Waiver. If the City in its sole discretion determines not to exercise the Option in any particular instance, or fails to deliver a Notice of Exercise or Consent to Transfer within the time periods set forth in Section 7.4, such determination or failure shall not affect City’s rights to exercise the Option upon the occurrence of any future Option Event.

7.6 Payment of Excess Sale Proceeds.

7.6.1 Upon Sale in Violation of Agreement. If Owner sells or otherwise transfers the Property in violation of the price restrictions set forth herein, and if City chooses not to exercise its Option, then City shall be entitled to receive from Owner without any deduction, offset or recoupment, one hundred percent (100%) of the difference (the “Excess Sale Proceeds”) between (a) the actual sales price net of reasonable and Attachment 2
237
EXHIBIT 1. LOAN, OCCUPANCY, REFINANCING, AND RESALE RESTRICTION

AGREEMENT WITH OPTION TO PURCHASE
Exhibit 1_FTHLP_BMR_LORRA-2024 Page 10 Rev 8|2024
customary real estate commissions paid (such commissions not to exceed six percent (6%) of the actual sales price), and (b) the Adjusted Resale Price, calculated as of the earlier of (i) the date of close of escrow for the sale of the Property to the third party, or (ii) the date the City receives Notice of Intent to Transfer pursuant to Section 7.1. This amount shall be a debt of Owner to City and shall be evidenced by the Note in addition to all other sums payable pursuant to the Note, and shall be secured by the Deed of Trust. Owner acknowledges that City shall have no obligation to reconvey the Deed of Trust or this Agreement unless and until the Excess Sale Proceeds are paid to City. City shall use the Excess Sale Proceeds fo r affordable housing programs.

The Owner acknowledges that the formula used to determine the amount of the Excess Sale Proceeds is intended to cause Owner to receive the same or less net sale proceeds from the unrestricted sale of the Property as Owner would have received if the Property had been sold to an Eligible Household at the p rice permitted pursuant to this Agreement.

7.6.2 Upon Foreclosure. If the Property is sold at a foreclosure sale and the proceeds of such sale are distributed to Owner, any surplus of proceeds remaining after payment of the senior liens and encumbrances on the Property shall be distributed as follows: that portion of the surplus up to, but not to exceed, the net amount Owner would have received pursuant to Sections 12 and 13 had the City exercised its Option on the date of such sale shall be distributed to Owner, and the balance of such surplus, if any, shall be distributed to the City.

8. Right to Reinstatement . If the Option Event is the recordation of a notice of default, then the City shall be deemed to be Owner's successor in interest under California Civil Code Section 2924c (or successor section) solely for purposes of reinstatement of any mortgage on the Property that has led to the recordation of the notice of default.

As Owner's deemed successor in interest, the City shall be entitled to pay all amounts of principal, interest, taxes, assessments, homeowners' association fees, insurance premiums, advances, costs, attorneys' fees and expenses required to cure the default. If the City exercises the Option, then any and all amounts paid by the City pursuant to this Section shall be treated as Adjustments to the Base Resale Price for the Property, as defined in Section 13, below.

9. Inspection of Property. After receiving a Notice of Intent to Transfer or delivering a Notice of Exercise, the City shall be entitled to inspect the Property one or more times prior to the close of escrow to determine the amount of any Adjustments to the Base Resale Price. Before inspecting the Property, the City shall give Owner not less than forty - eight (48) hours written notice of the date, time and expected duration of the inspection. The inspection shall be conducted between the hours of 9:00 a.m. and 5:00 p.m., Monday through Friday, excluding court holidays, unless the parties mutually agree in writing to another date and time. Owner shall make the Property available for inspection on the date and at the time specified in the City's request for inspection.

10. Escrow. Promptly after delivering a Notice of Exercise, the City shall open an escrow with a title company of City’s choosing. Close of escrow shall take place on the date which is the later to occur of the following: (a) sixty (60) days after a Notice of Exercise has been delivered, or (b) ten (10) days after Owner has performed all acts and executed all documents required for close of escrow; provided however, if the City exercises the Option upon the occurrence of an Option Event described in Sections 6(d) – (f) close of escrow shall take place no later than 90 days after the date the City receives notification of such Option Event. Prior to the close of escrow, the City shall deposit into escrow, the Adjusted Resale Price and all escrow fees and closing costs to be paid by City. Commissions (not to exceed 6% of the actual sales price), costs and title insurance premiums shall be paid pursuant to the custom and practice in the County of Alameda at the time of the opening of escrow, or as may otherwise be provided by mutual agreement. Owner agrees to perform all acts and execute all documents reasonably necessary to effectuate the close of escrow and transfer of the Property to the City.

11. Proceeds of Escrow; Removal of Exceptions to Title. Prior to close of escrow, Owner shall cause the removal of all exceptions to title to the Property that were recorded after the Effective Date with the exception of (i) non - delinquent taxes for the fiscal year in which the escrow closes, which taxes shall be prorated as between Owner and City as of the date of close of escrow, (ii) quasi-public utility, public alley, public street easements, sidewalks, and rights Attachment 2
238
EXHIBIT 1. LOAN, OCCUPANCY, REFINANCING, AND RESALE RESTRICTION

AGREEMENT WITH OPTION TO PURCHASE
Exhibit 1_FTHLP_BMR_LORRA-2024 Page 11 Rev 8|2024
of way of record, and (iii) such other liens, encumbrances, reservations and restrictions as may be approved in writing by City (“Permitted Exceptions ”). The purchase price deposited into escrow by the City shall be applied first to the payoff of the permitted encumbrances (as described in Section 4.4 and the subsections thereof) recorded against the Property in order of lien priority, and thereafter to the payment of Owner’s share of escrow fees and closing costs. Any amounts remaining after the purchase price has been so applied, if any, shall be paid to Owner upon the close of escrow. If the purchase price is insufficient to satisfy all liens and encumbrances recorded against the Property, the Owner shall deposit into escrow such additional sums as may be required to remove such liens and encumbrances.

In the event that the City agrees to proceed with close of escrow prior to the date that Owner has caused all exceptions to title other than Permitted Exceptions to be removed, then Owner shall indemnify, defend and hold City harmless from any and all costs expenses or liabilities (including attorneys' fees) incurred or suffered by City that relate to such exceptions and their removal from title to the Property.

12. Base Resale Price. Prior to adjustment pursuant to Section 13 the base resale price (“Base Resale Price”) of the Property shall be the lesser of:

(a) Indexed Value. The Indexed Value of the Property means the original price paid by the Owner for acquisition of the Property which the Parties agree is the sum of sale amount written dollars ($000,000) (the “Base Price”), increased (but not decreased) by an amount, if any, equal to the Base Price multiplied by the percentage increase in the Area Median Income between the Effective Date and the date that the City receives notification of an Option Event.

(b) Fair Market Value. The Fair Market Value of the Property means the value of the Property as determined by a qualified appraiser, certified by the State of California, selected and paid for by Owner and approved in writing by the City. Nothing in this Section shall preclude the Owner and the City from establishing the Fair Market Value by mutual agreement instead of by appraisal.

13. Adjustments to Base Resale Price. Subject to the Affordable Unit Cost restriction described in subsection (d) below, the Base Resale Price shall be increased or decreased, as applicable, by the following adjustment factors (“Adjustments”):

(a) Capital Improvements. An increase for Eligible C apital Improvements (as defined in Section 14) made to the Property, but only if the amount of such improvements has been previously approved in writing by the City after Owner has submitted original written documentation of the cost to the City for verification. The amount of the Adjustment shall equal the original cost of any such Eligible Capital Improvements.

(b) Damage. A decrease by the amount necessary to repair damage to the Property, if any, and to place the Property into saleable condition as reasonably determined by the City upon City’s exercise of its Option hereunder, including, without limitation, amounts attributed to cleaning; painting; replacing worn carpeting and draperies; making necessary structural, mechanical, electrical and plumbing repairs; and repairing or replacing built-in appliances and fixtures. Owner covenants to, at Owner’s expense, maintain the Property in the same condition as in existence on the date of City’s Notice of Exercise, reasonable wear and tear excepted.

(c) Advances by the City. A decrease in an amount equal to the sum of all costs advanced by the City for the payment of mortgages, taxes, assessments, insurance premiums, homeowner's association fees and/or associated late fees, costs, penalties, interest, attorneys’ fees, pest inspections, resale inspections, fixing violations of applicable building, plumbing, electric, fire, or other codes, and other expenses related to the Property , which Owner has failed to pay or has permitted to become delinquent.

Attachment 2
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EXHIBIT 1. LOAN, OCCUPANCY, REFINANCING, AND RESALE RESTRICTION

AGREEMENT WITH OPTION TO PURCHASE
Exhibit 1_FTHLP_BMR_LORRA-2024 Page 12 Rev 8|2024
(d) Adjusted Resale Price Not to Exceed Affordable Unit Cost. The Base Resale Price as adjusted by the factors set forth in this Section 13, is herein referred to as the “Adjusted Resale Price.” Notwithstanding any other provision hereof to the contrary, in no event shall the Adjusted Resale Price exceed the Affordable Unit Cost.

14. Eligible Capital Improvements. In the exercise of reasonable discretion in accordance with the Guidelines to the Inclusionary Ordinance Regulations adopted by the City from time to time, the City will approve capital improvements that will improve adverse health and safety conditions. To receive such approval, the Owner must submit evidence to the City showing the purpose and cost of the capital improvements. If the City approves the capital improvements they shall be deemed “Eligible Capital Improvements.”

15. Priority of this Agreement and Effectiveness of the Option.

(a) Recordation. This Agreement shall be recorded in the Official Records of Alameda County on or as soon as practicable after the Effective Date. The Option shall have priority over any subsequent sale, conveyance, transfer, lease, or other disposition or encumbrance of the Property, or of any estate or interest therein, and in the event of exercise of the Option by City, the City shall take the Pr operty subject only to Permitted Exceptions. As further described in Section 16, the exercise of the Option by the City at any time and from time to time shall not extinguish the Option or cause a merger of the Option into any estate or other interest in the Property, and the Option shall continue to exist and be effective with respect to the Property against any and all subsequent owners exercisable by City in accordance with the terms and conditions hereof.

(b) Request for Notice of Default. The City shall file a Request for Notice of Default for recordation in the Official Records of Alameda County promptly upon execution of this Agreement (see Exhibit E).

(c) Subordination. The City agrees that in order to assist qualified purchasers to secure purchase money financing for the acquisition of the Property, the City will enter into a subordination agreement with a senior purchase money lender to subordinate this Agreement under such terms as the City and the senior purchase money lender shall negotiate. Any subordination agreement to be executed by City shall include notice and cure rights for City regarding any defaults in the mortgage to which the City is subordinating.

16. Survival of Option Upon Transfer.

(a) In General. The City's right to exercise the Option shall survive any transfer of the Property by Owner.

Each transferee, assignee or purchaser of the Property during the T erm of the Resale Restrictions and Option shall be required to assume the obligations hereunder or to execute an agreement substantially in the form of this Agreement; provided however, any such new agreement shall specify that the term of the Option and the resale, refinancing and other restrictions set forth herein shall endure for the number of years remaining in the Term of the Resale Restrictions and Option as of the date of any such transfer, assignment, or sale. The City may exercise the Option at any time during the T erm of the Resale Restrictions and Option upon the occurrence of an Option Event, regardless of whether the Property is owned, possessed or occupied by (i) an Eligible Household, (ii) a successor, transferee, assignee, heir, executor, or administrator of an Eligible Household, including a debtor-in-possession, debtor or trustee pursuant to Title 11 of the United States Code, or (iii) any person owning, possessing or occupying the Property who does not meet the eligibility criteria established by the City under the Program. Notwithstanding the foregoing, the Option shall not survive (a) the sale and transfer of the Property to a third-party purchaser under a judicial or non- judicial foreclosure or a deed-in-lieu of foreclosure pursuant to a mortgage or deed of trust recorded against the Property senior in priority to this Agreement, provided that the City has received timely Attachment 2
240
EXHIBIT 1. LOAN, OCCUPANCY, REFINANCING, AND RESALE RESTRICTION

AGREEMENT WITH OPTION TO PURCHASE
Exhibit 1_FTHLP_BMR_LORRA-2024 Page 13 Rev 8|2024
notice of such Option Event and has failed to either reinstate the mortgage or deed of trust or complete the purchase of the Property pursuant to the exercise of the Option prior to the date of the foreclosure sale, or (b) the recordation of an instrument conveying Owner's interest in the Property to the City or its assignee.

(b) CalHFA Mortgages. If Owner has acquired the Property using financing secured by a mortgage held by the California Housing Finance Agency (CalHFA), then the Option shall automatically terminate if title to the Property is transferred by a foreclosure conducted on behalf of CalHFA or by a deed-in- lieu of such foreclosure, or if the insured mortgage is assigned to CalHFA, provided that the City has received timely notice of such Option Event (which notice may include a notice of default recorded pursuant to California Civil Code Section 2924 or successor provision).

17. Voidable Transfers. Any actual or attempted sale, conveyance, transfer or other disposition of the Property or of any estate or interest therein, in violation of the terms and conditions of this Agreement, shall be voidable at the election of the City.

18. Limits on Liability. In no event shall the City become liable or obligated in any manner to Owner by reason of the assignment of this Agreement or the Option, nor shall City be in any way liable or obligated to Owner for any failure of the City's assignee to consummate a purchase of the Property or to comply with the terms of this Agreement or the Option, or any escrow instructions or agreement for the purchase of the Property.

19. Insurance Proceeds and Condemnation Awards. If the Property is destroyed and insurance proceeds are distributed to Owner instead of being used to rebuild the Property, or, in the event of condemnation, if the proceeds thereof are distributed to Owner, any surplus of proceeds remaining after payment of the senior liens and Permitted Encumbrances shall be distributed as follows: that portion of the surplus up to, but not to exceed, the net amount Owner would have received pursuant to Sections 12 and 13 had the City exercised its Option on the date of the destruction or the condemnation valuation date shall be distributed to Owner, and the balance of such surplus, if any, shall be distributed to the City.

20. Covenants Running with the Land.

A. Owner hereby subjects the Property to the covenants and restrictions set forth in this Agreement.

Owner hereby declares its express intent that the covenants and restrictions set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon all parties having any interest in the Property throughout the Term of the Resale Restrictions and Option . Each and every contract, deed, lease or other instrument covering, conveying or otherwise transferring the Property or any interest therein, as the case may be, shall conclusively be held to have been executed, delivered and accepted subject to this Agreement regardless of whether the other party or parties to such contract have actual knowledge of this Agreement.

B. The Owner and the City hereby declare their understanding and intent that: (i) the covenants and restrictions contained in this Agreement shall be construed as covenants running with the land pursuant to California Civil Code Section 1468 and not as conditions which might result in forfeiture of title by Owner; (ii) the burden of the covenants and restrictions set forth in this Agreement touch and concern the Property in that the Owner's legal interest in the Property may be rendered less valuable thereby; and (iii) the benefit of the covenants and restrictions set forth in this Agreement touch and concern the land by enhancing and increasing the enjoyment and use of the Property by Eligible Households who may purchase the Property, the intended beneficiaries of such covenants and restrictions.

C. All covenants and restrictions contained herein without regard to technical classification or designation shall be binding upon Owner for the benefit of the City and such covenants and restrictions shall run in favor of such parties for the entire period during which such covenants and restrictions shall be in force and effect, Attachment 2
241
EXHIBIT 1. LOAN, OCCUPANCY, REFINANCING, AND RESALE RESTRICTION

AGREEMENT WITH OPTION TO PURCHASE
Exhibit 1_FTHLP_BMR_LORRA-2024 Page 14 Rev 8|2024
without regard to whether the City is an owner of any land or interest therein to which such covenants and restrictions relate.

21. Owner's Acknowledgement of Resale Restriction.

Owner hereby acknowledges and agrees that:

A. Owner hereby subjects the Property to certain restrictions, and limits the price for which Owner may sell the Property and the persons to whom Owner may sell the Property. The resale price limitations, and other provisions contained in this Agreement, restrict the full benefits of owning the Property; Owner may not enjoy the same economic or other benefits from owning the Property that Owner would enjoy if this Agreement did not exist.

B. Absent the provisions of the Program and the provisions of this Agreement, the Property could not be made available to Eligible Households, including Owner, at an affordable price.

C. Owner has read and understands all of the provisions of this Agreement. Owner accepts and agrees to the provisions of this Agreement and understands that this Agreement (including without limitation the effectiveness of the Resale Restrictions and the City’s Option) will remain in full force in perpetuity despite any Transfer of the Property.

D. OWNER UNDERSTANDS THAT THE DETERMINATION OF THE MAXIMUM AFFORDABLE RESALE

PRICE OF THE PROPERTY TO AN ELIGIBLE HOUSEHOLD CAN BE MADE ONLY AT THE TIME OF THE

PROPOSED TRANSFER, TAKING INTO CONSIDERATION INCREASES IN MEDIAN INCOME, MORTGAGE

INTEREST RATES, PROPERTY TAXES AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED

AND THAT THE SALES PRICE PE RMITTED HEREUNDER MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY THIS AGREEMENT. OWNER

FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE SALES PRICE OF THE PROPERTY THE

PRIMARY OBJECTIVE OF THE CITY AND THIS AGREEMENT IS TO PROVIDE HOUSING TO ELIGIBLE HOUSEHOLDS AT AFFORDABLE HOUSING COST. THE MAXIMUM RESTRICTED RESALE PRICE WILL ALMOST CERTAINLY BE LESS THAN OTHER SIMILAR PROPERTIES THAT HAVE NO RESTRICTIONS.

________ ________
*initialed by Owner(s)*

22. Equity Share Payable Upon First Transfer After Expiration of Restrictions and Option. The restrictions set forth in this Agreement and the Option shall remain in effect for a period of fifty- five (55) years commencing on the Effective Date. Notwithstanding the expiration of such conditions at the end of such term, upon the first transfer of the Property occurring after the expiration of the Term of the Resale Restrictions and Option, Owner (or Owner’s successor in interest) shall pay to City an amount (the “City’s Equity Share”) equal to twenty-five percent (25%) of the difference between (a) the actual sales price net of reasonable and customary real estate commissions paid (such commissions not to exceed six percent (6%) of the actual sales price), and (b) the Adjusted Resale Price as determined for the date of the expiration of the Term of the Resale Restrictions and Option. The City ‘s Equity Share shall be paid to the City concurrently with close of escrow for the sale of the Property, or upon Owner’s receipt of the sale proceeds, whichever shall first occur. The requirement to pay the City’s Equity Share shall survive the expiration of the Term of the Resale Restrictions and Option. Following completion of a sale and payment of the City’s Equity Share in compliance with this Section 22, this Agreement shall terminate, and City shall release and reconvey this Agreement.

23. Default and Remedies.

23.1 Events of Default. The following shall constitute the occurrence of an Event of Default hereunder, and shall entitle City to exercise the Option or to pursue any other remedy provided herein or at law or in equity:

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(i) Owner’s failure to use the Property as Owner’s Principal Residence;

(ii) The sale, conveyance, or other transfer of the Property (including a foreclosure sale) if the remaining ownership interest of the Owner in the Property is less than fifty percent (50%), except as provided in Section 4.3.1.

(iii) A default occurs under the terms of a senior deed of trust and such default is not cured within sixty (60) days following the recordation of notice of default under the senior deed of trust.

(iv) Owner refinances the Property in violation of this Agreement.

(v) Owner fails to observe or perform any covenant, condition, or agreement to be observed or performed by Owner pursuant to the City Documents, including but not limited to failure to pay indebtedness, failure to pay property taxes, or failure to maintain insurance, and such breach remains uncured beyond the expiration of any applicable cure period.

23.2 Specific Performance. Owner acknowledges that any breach in the performance of its obligations under this Agreement shall cause irreparable harm to the City. Owner agrees that the City is entitled to equitable relief in the form of specific performance, including without limitation, upon City’s exercise of the Option, and that an award of damages shall not be adequate to compensate the City for Owner's failure to perform according to the terms of this Agreement.

23.3. Other Remedies. City shall be entitled to pursue any other remedy provided for at law or equity, all of which shall be cumulative, including without limitation, the acceleration of the Note, and the pursuit of any remedy available pursuant to the City Documents, including foreclosure of the Deed of Trust.

24. Notices. Except as otherwise specified in this Agreement, all notices to be sent pursuant to this Agreement shall be made in writing, and sent to the Parties at their respective addresses specified below or to such other address as a Party may designate by written notice delivered to the other Party in accordance with this Section. All such notices shall be sent by:

a. personal delivery, in which case notice shall be deemed delivered upon receipt;

b. certified or registered mail, return receipt requested, in which case notice shall be deemed delivered two (2) business days after deposit, postage prepaid in the United States mail;

c. nationally recognized overnight courier, in which case notice shall be deemed delivered one (1) day after deposit with such courier; or

d. facsimile transmission, in which case notice shall be deemed delivered on transmittal, provided that a transmission report is generated reflecting the accurate transmission thereof.

City: City of Dublin
c/o Housing Division
100 Civic Plaza
Dublin, California 94568

Owner: Borrower(s)
Mailing Address
Dublin, CA 94568

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25. General Provisions.

a. Attorneys’ Fees. If either party initiates legal proceedings to interpret or enforce its rights under this Agreement, the prevailing party in such action shall be entitled to an award of reasonable attorneys’ fees and costs in additions to any other recovery to which it is entitled under this Agreement.

b. No Joint Venture; No Third-Party Beneficiary. No joint venture or other partnership exists or is created between the Parties by virtue of this Agreement. Except as expressly stated herein, this Agreement is not intended to benefit any third party.

c. Successors; Assignment. This Agreement shall inure to the benefit of and shall be binding upon the parties to this Agreement and their respective heirs, executors, administrators, successors and assigns. City shall have the right to assign any or all of its rights and obligations under this Agreement without the consent of Owner.

d. Entire Agreement; Amendment . This Agreement together with the Note and the Deed of Trust constitutes the entire agreement of the parties with respect to the subject matter hereof, and supersedes any and all other prior negotiations, correspondence, understandings and agreements with respect thereto. There are no representations, promises, agreements or other understandings between the parties relating to the subject matter of this Agreement that are not expressed herein. This Agreement may be modified only by an instrument in writing executed by the parties or their respective successors in interest.

e. Survival; No Merger. All of the terms, provisions, representations, warranties and covenants of the parties under this Agreement shall survive the close of escrow of any sale of the Property and shall not be merged in any deed transferring the Property.

f. Authority and Execution. Each party represents and warrants that it has full power and authority to enter into this Agreement and to undertake all of its obligations hereunder, that each person executing this Agreement on its behalf is duly and validly authorized to do so.

g. Severability. The invalidity or unenforceability of any term or provision of this Agreement shall not impair or affect the remainder of this Agreement, and the remaining terms and provisions hereof shall not be invalidated but shall remain in full force and effect.

h. Waiver; Modification. No waiver or modification of this Agreement or any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith. No evidence o f any waiver or modification shall be offered or received in evidence in any proceeding, arbitration, or litigation between the parties arising out of or affecting this Agreement or the rights or obligations of any party hereunder, unless such waiver or modification is in a duly executed writing. The provisions of this section may not be waived except as herein set forth. A waiver or breach of any covenant, condition or provision of this Agreement shall not be deemed a waiver of any other covenant, condition or provision hereof.

i. Construction. The section headings and captions used in this Agreement are for convenience of reference only and shall not modify, define, limit or amplify any of the terms or provisions hereof. This Agreement shall not be construed as if it had been prepared by one of the parties, but rather as if both parties have prepared it.

j. Governing Law. This Agreement shall in all respects be governed by and construed in accordance with the laws of the State of California.

k. Time of the Essence. Time is of the essence in this Agreement as to each provision in which time is an element of performance.

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AGREEMENT WITH OPTION TO PURCHASE
Exhibit 1_FTHLP_BMR_LORRA-2024 Page 17 Rev 8|2024
l. Further Assurances . Each party will, upon reasonable request of the other party, execute, acknowledge, and deliver, or cause to be executed, acknowledged, and delivered, such further instruments and documents as may be reasonably necessary in order to fulfill the intent and purpose of this Agreement.

m. Counterparts. This Agreement may be executed in counterparts, each of which shall be an original, and all which together shall constitute one and the same instrument.

SIGNATURES ON FOLLOWING PAGE
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

OWNER(S):

____________________________
Borrower

CITY:

City of Dublin, a California municipal corporation

City Manager

ATTEST:

City Clerk

SIGNATURES MUST BE NOTARIZED
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EXHIBIT 1. LOAN, OCCUPANCY, REFINANCING, AND RESALE RESTRICTION

AGREEMENT WITH OPTION TO PURCHASE

Exhibit 1_FTHLP_BMR_LORRA-2024 Notary Acknowledgment

NOTARY ACKNOWLEDGEMENT
[To be inserted]
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EXHIBIT 1. LOAN, OCCUPANCY, REFINANCING, AND RESALE RESTRICTION

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Exhibit 1_FTHLP_BMR_LORRA-2024 City Certificate of Acceptance

CERTIFICATE OF ACCEPTANCE
(Pursuant to Government Code §27281)

This is to certify that the interest in real property conveyed by the Resale Restriction Agreement and Option to Purchase dated Date of signing from Borrowers to the City of Dublin, a California municipal corporation, is hereby accepted by the undersigned office or agent on behalf of the City of Dublin pursuant to authority conferred by the Resolution No. 24-87 dated April 13, 1987; and the grantee consents to recordation thereof by its duly authorized officer.

Dated:

City Manager

Attest:

City Clerk
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EXHIBIT 1. LOAN, OCCUPANCY, REFINANCING, AND RESALE RESTRICTION

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Exhibit 1_FTHLP_BMR_LORRA-2024 Exhibit A: Legal Description

EXHIBIT A

LEGAL DESCRIPTION [Insert Here]
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EXHIBIT 1. LOAN, OCCUPANCY, REFINANCING, AND RESALE RESTRICTION

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Exhibit 1_FTHLP_BMR_LORRA-2024 Exhibit B: Notice of Intent to Transfer

EXHIBIT B

FORM OF NOTICE OF INTENT TO TRANSFER

To: City of Dublin
100 Civic Plaza
Dublin, CA 94568
Attn: City Clerk

Date:

Re: Notice of Intent to Transfer

Pursuant to the terms of the Resale Restriction Agreement and Option to Purchase, dated date of signing, the undersigned Owner(s), Borrower(s) , hereby give(s) notice of his/her/their intent to transfer the property located at Property Address, Dublin, California 94568 (the “Property”). Owner may be contacted at the Property or at the following address:

Telephone:

Email:

If applicable: The proposed transfer of the Property is to the following person(s):

Name:

Address:

Telephone:

The proposed transfer is (check one):

Sale

Other Specify:

Owner(s) signature(s):

Signature Signature

Print Name Print Name
Attachment 2
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EXHIBIT 1. LOAN, OCCUPANCY, REFINANCING, AND RESALE RESTRICTION

AGREEMENT WITH OPTION TO PURCHASE

Exhibit 1_FTHLP_BMR_LORRA-2024 Exhibit C: Notice of Exercise

EXHIBIT C

FORM OF NOTICE OF EXERCISE

Date:

To (Owner/Transferee):

Address:

Re: Notice of Exercise

The City of Dublin (" City") hereby gives notice that it is exercising its option to purchase the real property located at Property Address , Dublin, California 94568. The option has been granted to the City pursuant to the Loan, Occupancy, Refinancing and Resale Restriction Agreement with Option to Purchase executed by and between Owner and the City dated as of Date of Signing and recorded on as Instrument No. 201XXXXXXX (the City has assigned its option to purchase the real property to ).

An escrow for the purchase will be opened with T itle Company. .

Dated: CITY OF DUBLIN

________________________________
By:

Its:

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EXHIBIT 1. LOAN, OCCUPANCY, REFINANCING, AND RESALE RESTRICTION

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Exhibit 1_FTHLP_BMR_LORRA-2024 Exhibit D: Disclosure Statement

EXHIBIT D

FORM OF DISCLOSURE STATEMENT

THERE ARE RESTRICTIONS ON THE SALE AND REFINANCING OF THE PROPERTY YOU ARE BUYING.

EXCEPT FOR A TRANSFER OF THE PROPERTY TO THE CITY OF DUBLIN (“CITY”) FOLLOWING EXERCISE OF CITY’S OPTION TO PURCHASE, THIS PROPERTY MAY ONLY BE SOLD TO AN “ ELIGIBLE HOUSEHOLD” AT A PRICE NOT TO EXCEED THE ADJUSTED RESALE PRICE WHICH IS CAPPED AT AN “ AFFORDABLE UNIT COST.” THIS MEANS THAT YOU MAY NOT SELL THE PROPERTY FOR MARKET VALUE TO WHOMEVER YOU LIKE.

IN ADDITION, THIS PROPERTY IS REQUIRED TO BE OWNER- OCCUPIED AND MAY NOT BE LEASED OR RENTED TO THIRD PARTIES.

THESE RESTRICTIONS WILL BE IN EFFECT UNTIL 30 years/ 55 years from original owner’s signing date or perpetually.

ANY SALE OF THE PROPERTY IN VIOLATION OF THE RESTRICTIONS SET FORTH IN THE LOAN, OCCUPANCY, REFINANCING AND RESALE RESTRICTION AGREEMENT WITH OPTION TO PURCHASE (“RESALE RESTRICTION AGREEMENT”) WHICH HAS BEEN RECORDED AGAINST THE PROPERTY, SHALL BE VOIDABLE

AT THE ELECTION OF THE CITY, AND SHALL ENTITLE THE CITY TO EXERCISE ITS OPTION TO PURCHASE THE PROPERTY.

TO DETERMINE WHO AN ELIGIBLE HOUSEHOLD IS, AND WHAT THE ADJUSTED RESALE PRICE AND AFFORDABLE UNIT COST ARE, YOU SHOULD CONTACT THE HOUSING DIVISION OF THE CITY OF DUBLIN.

YOU SHOULD READ THE RESALE RESTRICTION AGREEMENT. YOU MAY OBTAIN A COPY FROM THE CITY OF DUBLIN OR FROM THE ESCROW COMPANY.

YOU SHOULD ALSO BE AWARE THAT A DEED OF TRUST HAS BEEN RECORDED AGAINST THE PROPERTY TO ENSURE COMPLIANCE WITH THE RESALE RESTRICTION AGREEMENT. YOU MAY OBTAIN COPIES OF THE DEED OF TRUST FROM THE CITY OF DUBLIN OR FROM THE ESCROW COMPANY.

IN CONNECTION WITH THE PURCHASE OF THIS PROPERTY, YOU WILL BE REQUIRED TO ASSUME THE OWNER’S OBLIGATIONS UNDER THE RESALE RESTRICTION AGREEMENT OR TO EXECUTE A SUBSTANTIALLY SIMILAR DOCUMENT.

I HAVE READ THE FOREGOING AND I UNDERSTAND WHAT IT MEANS.

Borrower Borrower
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Exhibit 1_FTHLP_BMR_LORRA-2024 Exhibit E: Request for Notice of Default

EXHIBIT E

FORM OF REQUEST FOR NOTICE OF DEFAULT

Recording requested by and when
recorded mail to:

City of Dublin
100 Civic Plaza
Dublin, CA 94568
Attn: City Clerk

EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383

(Space Above This Line For Recorder’s Use Only)
Escrow Number:

Loan Number:

REQUEST FOR NOTICE UNDER SECTION 2924b CIVIL CODE

In accordance with Section 2924b, Civil Code, request is hereby made that a copy of any Notice of Default and a copy of any Notice of Sale under the Deed of Trust recorded as Instrument No. 201XXXXXXX recorded concurrent herewith in the Official Records of Alameda County, California, and describing land therein as Address, Dublin, California 94568:

(See attached legal description)

Executed by Owner(s), as Trustor, in which Bank is named as Lender, with Trustee as Trustee, and Beneficiary as Beneficiary, be mailed to the City of Dublin, 100 Civic Plaza, Dublin, California 94568, Attn.:

City Manager

By: _____________________________
City Manager

NOTICE: A COPY OF ANY NOTICE OF DEFAULT AND OF ANY NOTICE OF SALE WILL BE SENT ONLY TO THE ADDRESS CONTAINED IN THIS RECORDED REQUEST. IF YOUR ADDRESS CHANGES, A NEW REQUEST MUST BE RECORDED.

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EXHIBIT 2. DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING, AND SECURITY

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Recording requested by and when
recorded mail to:

City of Dublin
100 Civic Plaza
Dublin, CA 94568
Attn: City Clerk

EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383

Space above this line for Recorder’s Use

DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING AND SECURITY

AGREEMENT

City of Dublin First-Time Homebuyer Program
(Inclusionary Units)

THERE ARE RESTRICTIONS ON THE USE OF THE PROPERTY ENCUMBERED BY THIS DEED OF TRUST.

THERE ARE LIMITATIONS ON THE EXTENT TO WHICH THIS PROPERTY MAY BE ENCUMBERED BY JUNIOR FINANCING AND UPON TRUSTOR’S RIGHTS TO REFINANCE EXISTING MORTGAGES . THE

SALE OF THIS PROPERTY IS LIMITED TO INCOME-ELIGIBLE HOUSEHOLDS AT A RESTRICTED PRICE PURSUANT TO THE CITY OF DUBLIN FIRST -TIME HOMEBUYER PROGRAM. CERTAIN OBLIGATIONS OF THE TRUSTOR SURVIVE THE REPAYMENT OF THE LOAN SECURED BY THIS INSTRUMENT.

This Deed of Trust, Assignment of Rents, Fixture Filing and Security Agreement (“Deed of Trust”) is made as of DATE (“Effective Date”) by BORROWER (collectively, “Trustor”) to TITLE COMPANY (the “Trustee”) whose business address is TITLE COMPANY ADDRESS for the benefit of The City of Dublin a municipal corporation (“Beneficiary”).

WHEREAS, Trustor is the owner of the real property located at PROPERTY ADDRESS in the City of Dublin, Alameda County, California, 94568 and more particularly described in Exhibit A attached hereto and incorporated herein;

WHEREAS, to assist Trustor in the acquisition of such property, Beneficiary provided a low -interest, deferred payment loan in the original principal amount of LOAN AMOUNT 00/100 Dollars ($00.00) (the “Loan”) funded by Beneficiary’s First-Time Homebuyer Program;

WHEREAS, in connection with the Loan, Trustor and Beneficiary entered into a Loan , Occupancy, Refinancing and Resale Restriction Agreement with Option to Purchase dated as of the Effective Date and recorded in the Official Records of Alameda County substantially concurrently herewith (the “Resale Restriction Agreement”), and Trustor executed and delivered to Beneficiary a Secured Promissory Note dated as of the Effective Date (the “Note”); and

WHEREAS, among other provisions, the Resale Restriction Agreement provides that (i) the Property may be sold only to an Eligible Household at a restricted affordable price (as such terms are defined in the

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Resale Restriction Agreement , (ii)Trustor and subsequent owners of the Property are obligated to use the Property as their Principal Residence (as defined in the Resale Restriction Agreement); (iii) there are restrictions on the ability of Trustor and subsequent Property owners to encumber and refinance the Property; (iv) Beneficiary has an option to purchase the Property upon the occurrence of specified events, including without limitation, the occurrence of an Event of Default under the Resale Restriction Agreement or the receipt of a Notice of Intent to Transfer the Property (as defined in the Resale Restriction Agreement ); and (v) an equity share is payable to Beneficiary upon the first sale or other conveyance of the Property following the expiration of the term of the resale price restrictions.

NOW THEREFORE, to secure repayment of the Loan and the full and timely performance of Trustor’s obligations under the Note and the Resale Restriction Agreement, it is agreed as follows.

1. Grant in Trust. Trustor, in consideration of the indebtedness herein recited and the trust herein created, hereby irrevocably and unconditionally grants, transfers, conveys and assigns to Trustee in trust for the benefit of Beneficiary, with power of sale and right of entry and possession, all of Trustor ’s right, title and interest now held or hereafter acquired in and to the following: (a) all of that certain real property located at PROPERTY ADDRESS in Dublin, California in the County of Alameda and the State of California, which is more particularly described in Exhibit A, attached hereto and incorporated herein by this reference(the “ Land”); (b) all buildings, improvements and fixtures now or hereafter erected on the Property and all replacements and additions thereto (“Improvements”); (c) all easements, rights of way, appurtenances and other rights used in connection with the Property or as a means of access thereto (“Appurtenances”); (d) all fixtures now or hereafter attached to or used in and about the Property or the Improvements or hereafter located or constructed on the Property, and all renewals or replacements thereof or articles in substitution therefor, whether or not the same are, or shall be attached to the Improvements in any manner (“Fixtures and Equipment”); and (e) all leases, subleases, licenses and other agreements relating to use or occupancy of the Property (“Leases”) and all rents or other payments which may now or hereafter accrue or otherwise become payable to or for the benefit of Trustor (“Rents”) (whether or not such Leases and Rents are permitted pursuant to the Resale Restriction Agreement).

All of the above- referenced Property, Improvements, Appurtenances, Fixtures and Equipment, Leases and Rents are herein referred to collectively as the “Property.”

2. Obligations Secured. This Deed of Trust is given for the purpose of securing payment and performance of all of the following (the “Secured Obligations”): (i) all present and future indebtedness evidenced by the Note (including all principal, interest, shared appreciation and all other amounts payable pursuant to the Note) and all amendments, modifications, extensions and renewals of the Note; (ii) all present and future obligations of Trustor set forth in this Deed of Trust or in the Resale Restriction Agreement; (iii) all additional present and future obligations of Trustor to Beneficiary under any other agreement or instrument acknowledged by Trustor (whether existing now or in the future) which states that it is or such obligations are, secured by this Deed of Trust; (iv) all modifications, supplements, amendments, renewals, and extensions of any of the foregoing, whether evidenced by new or additional documents; and (v) reimbursement of all amounts advanced by or on behalf of Beneficiary to protect Beneficiary’s interests under this Deed of Trust. Certain obligations set forth in the Resale Restriction Agreement survive the repayment of the Note, and this Deed of Trust secures such surviving obligations, which include, without limitation: the restrictions upon resale price and refinancing set forth in the Resale Restriction Agreement, and the obligation to pay an equity share payment to Beneficiary upon the first sale of the Property following the expiration of the resale price restrictions set forth in the Resale Restriction Agreement.

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AGREEMENT

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3. Assignment of Rents, Issues, and Profits. Trustor hereby irrevocably, absolutely, presently and unconditionally assigns to Beneficiary the rents, royalties, issues, profits, revenue, income and proceeds of the Property. This is an absolute assignment and not an assignment for security only. Subject to the prohibition on the lease or rental of the Property as set forth in the Resale Restriction Agreement, Beneficiary hereby confers upon Trustor a license to collect and retain such rents, royalties, issues, profits, revenue, income and proceeds as they become due and payable prior to any Event of Default hereunder. Upon the occurrence of any such Event of Default, Beneficiary may terminate such license without notice to or demand upon Trustor and without regard to the adequacy of any security for the indebtedness hereby secured, and may either in person, by agent, or by a receiver to be appointed by a court, enter upon and take possession of the Property or any part thereof, and sue for or otherwise collect such rents, issues, and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorneys’ fees, to any indebtedness secured hereby, and in such order as Beneficiary may determine. Beneficiary’s right to the rents, royalties, issues, profits, revenue, income and proceeds of the Property does not depend upon whether or not Beneficiary takes possession of the Property. The entering upon and taking possession of the Property, the collection of such rents, issues, and profits, and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. If an Event of Default occurs while Beneficiary is in possession of all or part of the Property and/or is collecting and applying Rents as permitted under this Deed of Trust, Beneficiary, Trustee and any receiver shall nevertheless be entitled to exercise and invoke every right and remedy afforded any of them under this Deed of Trust and at law or in equity, including the right to exercise the power of sale granted hereunder. Regardless of whether or not Beneficiary, in person or by agent, takes actual possession of the Land and Improvements, Beneficiary shall not be deemed to be a “mortgagee in possession,” shall not be responsible for performing any obligation of the lessor under any Lease, shall not be liable in any manner for the Property, or the use, occupancy, enjoyment or operation of any part of it , and unless due solely to the willful misconduct or gross negligence of Beneficiary, shall not be responsible for any dangerous or defective condition of the Property or any negligence in the management, repair or control of the Property.

4. Fixture Filing. This Deed of Trust is intended to be and constitutes a fixture filing pursuant to the provisions of the Uniform Commercial Code (“UCC”) with respect to all of the Property constituting fixtures, is being recorded as a fixture financing statement and filing under the UCC, and covers property, goods and equipment which are or are to become fixtures related to the Land and the Improvements. Trustor covenants and agrees that this Deed of Trust is to be filed in the real estate records of Alameda County and shall also operate from the date of such filing as a fixture filing in accordance with Section 9502 and other applicable provisions of the UCC.

This Deed of Trust shall also be effective as a financing statement covering minerals or the like (including oil and gas) and accounts subject to the UCC, as amended. Trustor shall be deemed to be the "debtor" and Beneficiary shall be deemed to be the "secured party" for all purposes under the UCC. The full name of Trustor and the mailing address of Trustor are set forth in Section 9.7 of this Deed of Trust.

5. TRUSTOR REPRESENTATIONS, WARRANTIES AND COVENANTS

5 .1. Trustor’s Estate. Trustor represents and covenants that Trustor is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property . Trustor agrees to warrant and defend generally the title of the Property against all claims and demands subject to any declarations, easements, or Attachment 2
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restrictions listed in the schedule of ex ceptions to coverage in any title insurance policy insuring Beneficiary’s interest in the Property.

5.2 Repayment of Sums Owed under Note and Resale Restriction Agreement .

Trustor will promptly pay to Beneficiary when due all sums payable under the Note and the Resale Restriction Agreement, including all principal, interest and other sums payable thereunder.

5.3 Performance of Covenants. Trustor will observe and perform all of Trustor’s covenants and agreements set forth in the Resale Restriction Agreement, the Note, this Deed of Trust and all other instruments secured by the Property.

5.4 Maintenance of the Property . Trustor agrees (a) to keep the Property in good repair and in decent, safe, sanitary, tenantable condition and repair and permit no waste thereof; (b) not to commit or suffer to be done or exist on or about the Land any condition causing the Property to become less valuable; (c) to repair, restore or rebuild promptly any buildings or improvements on the Land that may become damaged or be destroyed while subject to the lien of this Deed of Trust; (d) to comply with all applicable laws, ordinances and governmental regulations affecting the Property or requiring any alteration or improvement thereof, and not to suffer or permit any violations of any such law, ordinance or governmental regulation, nor of any covenant, condition or restriction affecting the Property; and (e) not to initiate or acquiesce in any change in any zoning or other land use or legal classification which affects any of the Property without the Beneficiary’s written consent.

If there arises a condition in contravention of this Section, and if the Trustor has not cured such condition within thirty (30) days after receiving a Beneficiary notice of such a condition, then in addition to any other rights available to the Beneficiary, the Beneficiary shall have the right (but not the obligation) to perform all acts necessary to cure such condition, and to establish or enforce a lien or other encumbrance against the Property to recover its cost of cure.

5.5 Appear and Defend. Trustor shall appear in and defend any action or proceeding purporting to affect the Property or the rights or powers of the Beneficiary or Trustee, and shall pay all costs and expenses, including cost of evidence of title and attorney’s fees in a reasonable sum, in any such action or proceeding in which the Beneficiary or Trustee may appear, and in any suit brought by the Beneficiary to foreclose this Deed of Trust.

5.6 Charges; Liens . Trustor shall pay prior to delinquency all taxes, assessments, and other charges, fines, and impositions affecting the Property directly to the payee thereof. Upon request of Beneficiary, Trustor shall promptly furnish to Beneficiary copies of all notices of such amounts due and shall promptly furnish to Beneficiary receipts evidencing all such payments made. Trustor shall pay when due each obligation secured by or reducible to a lien, charge or encumbrance which now does or later may encumber or appear to encumber all or part of the Property or any interest therein, whether or not such lien, charge or encumbrance is or would be senior or subordinate to this Deed of Trust. Trustor shall not be required to pay any tax, charge or assessment so long as Trustor is actively contesting its validity in good faith and by appropriate legal proceedings which will operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. Trustor shall post security for the payment of such contested claims as may be requested by the Beneficiary.

5.7 Insurance. Trustor shall keep the Land and the Improvements i nsured by a standard all -risk property insurance policy in an amount equal to the replacement value of the Property with loss payable to the Attachment 2
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Beneficiary. The insurance carrier providing such insurance shall be licensed to do business in the State of California and may be chosen by Trustor, subject to approval by Beneficiary. All insurance policies and renewals thereof will be in a form acceptable to the Beneficiary, and will include a standard mortgagee clause with standard lender's endorsement in favor of the holder of any senior lien and the Beneficiary as their interests may appear and in a form acceptable to the Beneficiary. The Beneficiary shall have the right to hold, or cause its designated agent to hold, the policies and renewals thereof, and Trustor shall promptly furnish to the Beneficiary, or its designated agent, the original insurance policies or certificates of insurance, all renewal notices and all receipts of paid premiums. In the event of loss, Trustor will give prompt notice to the insurance carrier and the Beneficiary or its designated agent. The Beneficiary, or its designated agent, may make proof of loss if not made promptly by Trustor. The Beneficiary shall receive thirty (30) days advance written notice of the cancellation, expiration or termination or any material change in the coverage afforded by any of the insurance policies required under this Section.

Unless otherwise permitted by the Beneficiary in writing, insurance proceeds, subject to the rights of the holder of any senior lien, will be applied to restoration or repair of the Property damaged. If the Property is abandoned by Trustor, or if Trustor fails to respond to the Beneficiary, or its designated agent, within thirty (30) days from the date notice is mailed by either of them to Trustor that the insurance carrier offers to settle a claim for insurance benefits, the Beneficiary, or its designated agent, is authorized to collect and apply the insurance proceeds at the Beneficiary's option either to restoration or repair of the Property or to pay amounts due under the Resale Restriction Agreement and the Note.

If the Property is acquired by the Beneficiary, all right, title and interest of Trustor in and to any insurance policy and in and to the proceeds thereof resulting from damage to the Property prior to the sale or acquisition will pass to the Beneficiary to the extent of the sums secured by this Deed of Trust immediately prior to such sale or acquisition, subject to the rights of the holder of any senior lien.

Renewal policies and any replacement policies, together with premium receipts satisfactory to the Beneficiary, shall be delivered to the Beneficiary at least thirty (30) days prior to the expiration of existing policies.

Neither Trustee nor the Beneficiary shall by reason of accepting, rejecting, approving or obtaining insurance incur any liability for the existence, nonexistence, form or legal sufficiency of such insurance, or solvency of any insurer for payment of losses.

5.8 Use of Property. Trustor shall not permit or suffer the use of any of the Property for any purpose other than as a single family residential dwelling.

6. IT IS MUTUALLY AGREED THAT:

6.1. Protection of Beneficiary’s Security. If Trustor fails to perform the covenants and agreements contained in this Deed of Trust, or if any action or proceeding is commenced which materially affects Beneficiary’s interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, arrangements or proceedings involving a bankrupt or decedent, foreclosure of any mortgage secured by the Property or sale of the Property under a power of sale of any instrument secured by the Property, then Beneficiary, at Beneficiary ’s option, upon notice to Trustor, may make such appearance, disburse such sums and take such action as is necessary to protect Beneficiary ’s interest, including, but not limited to, the purchase of insurance, disbursement of reasonable attorney’s fees and entry upon the Property to make repairs.

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Any amounts disbursed by Beneficiary pursuant to this Section, with interest thereon, shall become additional indebtedness of Trustor secured by this Deed of Trust. Unless Trustor and Beneficiary agree to other terms of payment, such amounts shall be payable upon notice from Beneficiary to Trustor requesting payment thereof, and shall bear interest from the date of disbursement at the highest rate permissible under applicable law.

Nothing contained in this Section shall require Beneficiary to incur any expense or take any action hereunder.

6.2 Inspection. Beneficiary or its agent may make or cause to be made reasonable entries upon and inspections of the Property. Beneficiary shall give Trustor notice at the time of or prior to any such inspection specifying reasonable cause for the inspection

6.3 Awards and Damages . All judgments, awards of damages, settlements and compensation made in connection with or in lieu of (a) taking of all or any part of or any interest in the Property by or under assertion of the power of eminent domain, (b) any damage to or destruction of the Property or any part thereof by insured casualty, and (c) any other injury or damage to all or any part of the Property, are hereby assigned to and shall be paid to the Beneficiary. The Beneficiary is authorized and empowered (but not required) to collect and receive any such sums and is authorized to apply them in whole or in part upon any indebtedness or obligation secured hereby, in such order and manner as the Beneficiary shall determine at its option. The Beneficiary shall be entitled to settle and adjust all claims under insurance policies provided under this Deed of Trust and may deduct and retain from the proceeds of such insurance the amount of all expenses incurred by it in connection with any such settlement or adjustment. All or any part of the amounts so collected and recovered by the Beneficiary may be released to Trustor upon such conditions as the Beneficiary may impose for its disposition. Application of all or any part of the amounts collected and received by the Beneficiary or the release thereof shall not cure or waive any default under this Deed of Trust. If the Property is abandoned by Trustor, or if, after notice by Beneficiary to Trustor that the condemnor offers to make an award or settle a claim for damages, Trustor fails to respond to Beneficiary within thirty (30) days after the date such notice is mailed, Beneficiary is authorized to collect and apply the proceeds, at Beneficiary’s option, either to restoration or repair of the Property or to the sum secured by this Deed of Trust.

6.4 Prohibition on Transfers of Interest. With the exception of the transfers permitted pursuant to Section 6.9 below, if all or any part of the Property or an interest therein is sold or transferred by Trustor without Beneficiary’s prior written consent, Beneficiary may, at Beneficiary’s option, declare all sums secured by this Deed of Trust to be immediately due and payable. If Beneficiary exercises such option to accelerate, Beneficiary shall mail Trustor notice of acceleration in accordance with Sections 7.2 and 9.7 hereof. Such notices shall provide a period of not less than 30 days from the date the notice is mailed within which Trustor may pay the sums declared due. If Trustor fails to pay such sums prior to the expiration of such period, Beneficiary may, without further notice or demand on Trustor, invoke any remedies permitted by Section 7.2(a) hereof.

6.5 Sale or Forbearance. No sale of the Property, forbearance on the part of Beneficiary or extension of the time for payment of the indebtedness hereby secured shall operate to release, discharge, waive, modify, change or affect the liability of Trustor either in whole or in part.

6.6 Beneficiary’s Rights to Release. Without affecting the liability of any person for payment of any indebtedness hereby secured (other than any person released pursuant hereto), including without limitation any one or more endorsers or guarantors, and without affecting the lien hereof upon any of the Property not released pursuant hereto, at any time and from time to time without notice: (a) Beneficiary may in its sole Attachment 2
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discretion: (i) release any person now or hereafter liable for payment of any or all such indebtedness, (iii) extend the time for or agree to alter the terms of payment of any or all of such indebtedness, and (iii) release or accept additional security for such indebtedness, or subordinate the lien or charge hereof; and (b) Trustee, acting pursuant to the written request of the Beneficiary , may reconvey all or any part of the Property , consent to the making of any map or plot of the Land, join in granting any assessment thereon, or join in any such agreement of extension or subordination.

6.7 Reconveyance. Upon payment of all sums secured by this Deed of Trust , Beneficiary shall request Trustee to reconvey the Property and shall surrender this Deed of Trust and all notes evidencing indebtedness secured by this Deed of Trust to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legally entitled thereto. Such person or persons shall pay all costs of recordation, if any. The recitals in the reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof.

6.8 Requirement of Owner-Occupancy. Trustor shall occupy the Property as Trustor’s principal place of residence in accordance with the Resale Restriction Agreement.

6.9 Permitted Transfers. The following transfers shall not be deemed to be a default hereunder:

(a) The transfer of the Property to the surviving joint tenant by devise, descent or operation of the law, on the death of a joint tenant.

(b) A transfer of the Property where the spouse or domestic partner of Trustor becomes a co-owner of the Property.

(c) A transfer of the Property resulting from a decree of dissolution of marriage, legal separation or from an incidental property settlement agreement by which the spouse of Trustor b ecomes an owner of the Property.

(d) A transfer to an inter vivos or living trust in which the Trustor is and remains the beneficiary of the trust and the occupant of the Property.

(e) A sale, conveyance, or other transfer when following such sale, conveyance or transfer, the original Trustor retains ownership of at least 50% of the Property.

(f) A transfer to an Eligible Household (as defined in the Resale Restriction Agreement) in accordance with Section 4.3.1 of the Resale Restriction Agreement.

7. EVENTS OF DEFAULT

7.1 Events of Default. Any one or more of the following events shall constitute a default under this Deed of Trust:

(a) Failure to use the Property as Trustor’s Principal Residence in violation of the Resale Restriction Agreement;
Attachment 2
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(b) The sale, conveyance, or other transfer of the Property (including a foreclosure sale), if following such sale, conveyance or transfer, Trustor’s remaining ownership interest in the Property is less than fifty percent (50%), except as provided in Section 6.9.

(c) An event of default arises under any other loan secured by the Property and such default remains uncured following the expiration of any applicable cure period.

(d) Trustor encumbers or refinances the Property in violation of the Resale Restriction Agreement.

(e) Trustor fails to observe or perform any other covenant, condition, or agreement to be observed or performed by Trustor pursuant to the Note, the Resale Restriction Agreement or this Deed of Trust, including without limitation, the failure to pay any sum due pursuant to any such document.

(f) Trustor declares bankruptcy or makes an assignment of assets for the benefit of creditors.

7 .2 A cceleration and Sale.

(a) Default; Remedies. U pon Trustor’s breach of any covenant or agreement of Trustor under the Note, the Resale Restriction Agreement or this Deed of Trust (including without limitation, Trustor’s encumbrance or refinancing of the Property in violation of the foregoing agreements) Beneficiary shall mail notice to Trustor as provided in Section 9.7 hereof specifying: ( i) the nature of the breach; ( ii) the action required to cure such breach; (iii) a date no less than thirty (30) days from the date the notice is mailed to Trustor by which such breach must be cured; and (iv) that failure to cure such breach on or before the date specified in the notice may result in acceleration of the Loan and the sale of the Property. The notice shall further inform Trustor of Trustor’s right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any other defense of Trustor to acceleration and sale. If the breach is not cured on or before the date specified in the notice, Beneficiary at Beneficiary’s option may: (a) declare all of the sums secured by this Deed of Trust to be immediately due and payable without further demand and may invoke the power of sale; (b) commence an action to foreclose this Deed of Trust as a mortgage; and (c) pursue any other remedy permitted under California law. Beneficiary shall be entitled to collect from the Trustor, or from the proceeds of the sale of the Property, all reasonable costs and expenses incurred in pursuing the remedies provided in this paragraph, including, but not limited to, reasonable attorneys’ fees.

(b) Trustor’s Right to Reinstate. Notwithstanding Beneficiary’s acceleration of the sums secured by this Deed of Trust, Trustor will have the right to have any proceedings begun by Beneficiary to enforce this Deed of Trust discontinued at any time prior to five (5) days before sale of the Property pursuant to the power of sale contained in this Deed of Trust or at any time prior to entry of the judgment enforcing this Deed of Trust if: (1) Trustor pays Beneficiary all sums which would be then due under this Deed of Trust and the Note, had no acceleration occurred; (2) Trustor pays all reasonable expenses incurred by Beneficiary and Trustee in enforcing the covenants and agreements of Trustor contained in this Deed of Trust, remedies including, but not limited to, reasonable attorneys’ fees; and (3) Trustor takes such action as Beneficiary may reasonably require Attachment 2
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to assure that the lien of this Deed of Trust, Beneficiary’s interest in the Property and Trustor’s obligation to pay the sums secured by this Deed of Trust shall continue unimpaired. Upon such payment and cure by Trustor, this Deed of Trust and the obligations secured hereby will remain in full force and effect as if no acceleration had occurred.

(c) Sale. After delivery to Trustee of a Notice of Default and Demand for Sale and after the expiration of such time and the giving of such notice of default and sale as may then be required by law, and without demand on Trustor, Trustee shall sell the Property at the time and place of sale fixed by it in said notice of sale, at public auction to the highest bidder for cash in lawful money of the United States of America, payable at time of sale. Trustee may postpone sale of all or any portion of the Property by public announcement at such time and place of sale and from time to time thereafter may postpone such sale by public announcement at the time and place fixed by the preceding postponement. Any person, including Trustor, Trustee or the Beneficiary, may purchase at such sale. Upon such sale by Trustee it shall deliver to such purchaser its deed conveying the Property so sold, but without any covenant or warranty expressed or implied. The recitals in such deed of any matters or facts shall be conclusive proof of their truthfulness. Upon sale by Trustee and after deducting all costs, expenses and fees of Trustee, Trustee shall apply the proceeds of sale to the payment of the indebtedness hereby secured, including without limitation the indebtedness evidenced by the Note, any advances made or costs or expenses paid or incurred by Beneficiary under this Deed of Trust, any indebtedness evidenced by any other instrument hereby secured, and all other sums then secured hereby, including without limitation, payment of interest, Excess Sale Proceeds and an equity share as provided in the Resale Restriction Agreement and the Note, in such order as the Beneficiary shall direct; and then the remainder, if any, shall be paid to the person or persons legally entitled thereto.

(d) Assignment of Rents; Appointment of Receiver; Beneficiary in Possession. Upon acceleration under Section 7.2(a) or abandonment of the Property, Beneficiary (in person, by agent or by judicially appointed receiver) shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the Property (if any) including those past due. All rents collected by Beneficiary or the Receiver shall be applied first to payment of the costs of management of the Property and collection of rents including, but not limited to, receiver’s fees, premiums on receiver’s bonds and reasonable attorney’s fees, and then to the sums secured by this Deed of Trust . Beneficiary and the receiver shall be liable to account only for those rents actually received. The provisions of this paragraph and Section 7.2(a) shall operate subject to the claims of prior lien holders.

7.3 Remedies Cumulative; No Waiver. No exercise of any right or remedy by the Beneficiary or Trustee hereunder shall constitute a waiver of any other right or remedy herein contained or provided by law, and no delay or forbearance by the Beneficiary or Trustee in exercising any such right or remedy hereunder shall operate as a waiver thereof or preclude the exercise thereof in any continued or subsequent default hereunder. All remedies provided in this Deed of Trust are distinct and cumulative to any other right or remedy under this Deed of Trust or any other document, or afforded by law or equity, and may be exercised concurrently, independently or successively.

7.4 Trustee Substitution. The irrevocable power to appoint a substitute trustee or trustees hereunder is hereby expressly granted to the Beneficiary, to be exercised at any time hereafter, without specifying any reason therefore, by filing for record in the office where this Deed of Trust is recorded a deed of appointment, and said power of appointment of successor trustee or trustees may be exercised as often as and Attachment 2
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whenever the Beneficiary deems advisable. The exercise of said power of appointment, no matter how often, shall not be deemed an exhaustion thereof, and upon recording of such deed or deeds of appointment, the trustee or trustees so appointed shall thereupon, without further act or deed of conveyance, succeed to and become fully vested with identically the same title and estate in and to the Property hereby conveyed and with all the rights, powers, trusts and duties of the predecessor in the trust hereunder, with the like effect as if originally named as trustee or as one of the trustees.

8. SUBORDINATION. This Deed of Trust shall be subordinate to the liens of the senior deeds of trust to be recorded against the Property, and any deed of trust held by the California Housing Finance Agency.

9. MISCELLANEOUS PROVISIONS

9.1 Successors and Assigns. The covenants and agreements contained in this Deed or Trust shall bind, and the benefit and advantages here under shall inure to, the respective heirs, executors, administrators, successors and assigns of the parties; provided however, nothing in this Section is intended to or shall modify any restrictions on assignment set forth herein or in the Note or Resale Restriction Agreement .

As used herein, the words “the Beneficiary” means the present Beneficiary or any future owner or holder, including a pledgee of the indebtedness secured hereby.

9 .2 Headings; Gender, Number . The captions and headings used in this Deed of Trust are inserted only for convenience of reference and in no way define, limit, or describe the scope or intent of this Deed of Trust, or of any particular provision thereof, or the proper construction thereof. Wherever used, the singular number shall include the plural, and the plural the singular, and the use of any gender shall be applicable to all genders.

9 .3 A pprovals in Writing. Except as otherwise specifically provided herein, whenever any approval, notice, direction, consent, request or other action by the Beneficiary is required or permitted under this Deed of Trust, such action shall be in writing.

9.4 Joint and Several O bligations. If more than one person has executed this Deed of Trust as Trustor, the obligations of all such persons hereunder shall be joint and several.

9.5 Severability. If any provision of this Deed of Trust shall be held by a court of competent jurisdiction to 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.

9.6 Indemnification. Trustor agrees to indemnify, defend (with counsel approved by Beneficiary) and hold the Beneficiary, its elected and appointed officers, officials, agents and employees (“Indemnitees”) harmless from and against any and all losses, damages, claims, actions, demands, judgments, penalties, costs and expenses (including reasonable attorneys’ fees) and liabilities (all of the foregoing, collectively “Claims”) which the Indemnitees may sustain or suffer directly or indirectly as a result of or arising in connection with (i) Trustor’s failure to perform any obligations as and when required by the Note, the Resale Restriction Agreement, or this Deed of Trust, (ii) the failure at any time of any of Trustor’s representations and warranties made in connection with the Loan to be true and correct, or (iii) any action or omission by Indemnitees in connection with Attachment 2
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this Deed of Trust, except to the extent any such Claim arises due to the gross negligence or willful misconduct of Indemnitees.

9.7 Notices. Except for any notice required under applicable law to be given in another manner (a) any notice to Trustor provided for in this Deed of Trust shall be given by mailing such notice by certified mail directed to the Property Address or any other address Trustor designates by notice to Beneficiary as provided herein; and, (b) any notice to Beneficiary shall be given by certified mail, return receipt requested, to Beneficiary’s mailing address stated herein or to such other address as Beneficiary may designate by notice to Trustor as provided herein. Any notice provided for in this Deed of Trust shall deem to have been given to Trustor or Beneficiary when given in the manner designated herein.

Beneficiary: City of Dublin
100 Civic Plaza
Dublin, CA 94568
Attn: City Treasurer

Trustor: BORROWER

MAILING ADDRESS
Dublin, CA 94568

9.8 Beneficiary Statement. Beneficiary may collect a fee for furnishing the beneficiary statement in an amount not to exceed the amount as provided by Section 2943 of the Civil Code of California.

9.9 Governing Law. This Deed of Trust shall be governed by the laws of the State of California.

IN WITNESS WHEREOF, Trustor has executed this Deed of Trust as of the date first written above.

TRUSTOR

BORROWER

SIGNATURES MUST BE NOTARIZED.

Attachment 2
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EXHIBIT 2. DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING, AND SECURITY

AGREEMENT

NOTARY ACKNOWLEDGMENT
[Insert Here]
Attachment 2
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EXHIBIT 2. DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING, AND SECURITY

AGREEMENT

Exhibit A: LEGAL DESCRIPTION
[Insert here]

Attachment 2
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EXHIBIT 3. SECURED PROMISSORY NOTE
FTH BMR PROMISSORY NOTE_SAMPLE -1- Rev 8|2024
NOTICE TO BORROWER: THIS DOCUMENT CONTAINS PROVISIONS RESTRICTING USE

OF THE PROPERTY, REFINANCING, AND ASSUMPTIONS

SECURED PROMISSORY NOTE

City of Dublin First-Time Homebuyer Program
(Inclusionary Units)

Loan No.: ##-## Borrower
Property Address
Dublin, California 94568

Loan Amount: $00.00 Date: Date
Together with Excess Sale Proceeds
and Equity Share

FOR VALUE RECEIVED, the undersigned, Borrower as appear on deed (collectively, “Borrower”) promises to pay to THE CITY OF DUBLIN, a municipal corporation (“Lender”) at 100 Civic Plaza, Dublin, California 94568, or such other place as Lender may from time to time designate by written notice to Borrower, in lawful money of the United States, the principal sum of Loan Amount Written 00/100 Dollars ($00.00), together with simple interest accruing at the rate of three percent (3%) per annum from the date of this Note until paid in full, plus (i) any amount payable to Lender pursuant to Section 7. 6 of the Resale Restriction Agreement (defined below) and (ii) any amount payable to Lender pursuant to Section 22 of the Resale Restriction Agreement. This Secured Promissory Note (this “Note”) is secured by that certain Deed of Trust, Assignment of Rents, Fixture Filing and Security Agreement (the “Deed of Trust”) dated as of the date hereof, executed by Borrower and recorded against the Property (defined below) in the Official Records of Alameda County. In addition to securing Borrower’s obligation to repay the sums payable pursuant to this Note, the Deed of Trust secures Borrower’s obligations set forth in that certain Loan, Occupancy, Refinancing and Resale Restriction Agreement with Option to Purchase (the “Resale Restriction Agreement”) dated as of the date hereof, executed by Borrower and Lender, and recorded against the Property.

1. Purpose of Loan. Borrower is purchasing the residential real property located at Property Address in the City of Dublin, Alameda County, California (the “Property”) as more particularly described in Exhibit A of the Deed of Trust. Lender has provided a loan in the principal amount of this Note (the “Loan”) to Borrower pursuant to Lender’s First-Time Homebuyer Program. The Resale Restriction Agreement restricts the resale price of the Property and provides that Borrower is obligated to pay Excess Sale Proceeds (as defined in Section 7. 6 of the Resale Restriction Agreement) to Lender if the Property is sold at a price greater than the restricted price. The Resale Restriction Agreement also provides that upon the first sale of the Property following the expiration of the resale price restrictions, a share of the appreciation (the “City’s Equity Share”) as defined in Section 22 of the Resale Restriction Agreement) is payable to Lender. This Note evidences

Attachment 2
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EXHIBIT 3. SECURED PROMISSORY NOTE
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Borrower’s obligation to pay to Lender: (i) the principal sum of this Note and the interest accrued thereon, (ii) any Excess Sale Proceeds owed to Lender pursuant to Section 7. 6 of the Resale Restriction Agreement, and (iii) any City’s Equity Share payable by Borrower pursuant to Section 22 of the Resale Restriction Agreement.

2. Loan Repayment. The entire outstanding principal balance of this Note, together with accrued interest and all other sums due hereunder, shall be due and payable in full in one lump sum upon the earliest to occur of: (i) the thirtieth (30 th) anniversary of the date of this Note, (ii) the sale, transfer, lease or encumbrance of all or any interest in the Property (other than as permitted pursuant to the Deed of Trust and the Resale Restriction Agreement), (iii) the refinancing of any senior mortgage secured by the Property or the encumbrance of the Property with junior financing which results in “cash out” to Borrower in excess of the cost of Eligible Capital Improvements approved by City in accordance with the Resale Restriction Agreement, or (iv) the occurrence of an Event of Default.

3. Due on Sale; Restrictions on Refinancing and Assumption. This Note is payable in full upon sale or refinancing of the Property (except as permitted pursuant to the Resale Restriction Agreement), and may not be assumed except under the limited circumstances set forth in Section

4.3.1 of the Resale Restriction Agreement.

4. Events of Default; Acceleration of Payment . An Event of Default permitting Lender to declare all sums payable hereunder (including, as applicable, any Excess Sale Proceeds and the City’s Equity Share) immediately due and payable and to exercise all remedies available to Lender pursuant to the Resale Restriction Agreement and the Deed of Trust shall arise upon the occurrence of any of the following:

(a) Borrower fails to use the Property as Borrower’s Principal Residence in accordance with the Resale Restriction Agreement;

(b) The sale, transfer, conveyance, lease or encumbrance of the Property in violation of the Resale Restriction Agreement or the Deed of Trust;

(c) An event of default arises under any other loan secured by the Property and such default remains uncured following the expiration of any applicable cure period;

(d) Borrower refinances the Property in violation of the Resale Restriction Agreement;

(e) Borrower fails to pay when due any sum payable pursuant to this Note and such failure remains uncured fifteen (15) days beyond the due date for such payment; or

(f) An Event of Default arises under the Deed of Trust or the Resale Restriction Agreement and remains uncured beyond any applicable cure period.

5. Default Rate of Interest. Upon the occurrence of an Event of Default, the interest rate payable hereunder shall increase to the rate of ten percent (10%) per annum commencing upon the date of such Event of Default.

Attachment 2
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EXHIBIT 3. SECURED PROMISSORY NOTE
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6. Application of Payments. All payments received on account of this Note shall be applied first to accrued interest, next to the reduction of principal, and the remainder shall be applied to Excess Sale Proceeds and City’s Equity Share (to the extent applicable).

7. Attorney’s Fees . Borrower agrees to pay all costs and expenses, including reasonable attorney’s fees, which Lender may incur in the collection or enforcement of this Note, whether or not suit is filed.

8. No Offset; Borrower’s Waivers. Borrower hereby waives any rights of offset it now has or may hereafter have against Lender, its successors and assigns, and agrees to make the payments called for hereunder in accordance with the terms of this Note. Borrower hereby waives diligence, presentment, protest, and demand, and notice of protest, notice of dishonor and notice of nonpayment of this Note, and expressly waives any rights to be released by reason of any extension of time or change in terms of payment, or change, alteration or release of any security given for the payments hereof, and expressly waives the right to plead any and all statutes of limitation as a defense to any demand on this Note.

9. Notices. Except as may be otherwise specified herein, any approval, notice, direction, consent, request or other action by the Lender shall be in writing and shall be communicated to the Borrower at the address of the Property, or at such other place or places as the Borrower shall designate to the Lender in writing, from time to time, for the receipt of communications from the Lender. Mailed notices shall be deemed delivered and received five (5) working days after deposit in the United States mail in accordance with this provision.

Lender: City of Dublin
100 Civic Plaza
Dublin, CA 94568
Attn: City Treasurer

Borrower: Borrower
Mailing Address
Dublin, CA 94568

10. Prepayment. Borrower may prepay this Note in full at any time without premium or penalty, so long as Borrower pays the entire outstanding principal balance together with the interest accrued thereon and all other sums payable hereunder.

11. Governing Law. This Note shall be construed in accordance with and be governed by the laws of the State of California.

12. Severability. If any provision of this Note shall be held by a court of competent jurisdiction to 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.

13. No Waiver by Lender; Remedies Cumulative. No waiver of any breach, default or failure of condition under the Note, the Resale Restriction Agreement, or the Deed of Trust shall be implied from Lender’s failure or delay in declaring a default or exercising any of Lender’s rights or remedies Attachment 2
269
EXHIBIT 3. SECURED PROMISSORY NOTE
FTH BMR PROMISSORY NOTE_SAMPLE -4- Rev 8|2024
with respect to such breach, default or failure, or from any previous waiver of any similar or unrelated breach, default or failure , nor shall acceptance by Lender of any payment hereunder constitute a waiver of Lender’s right to require prompt payment of any remaining amounts owed. Without limiting the generality of the foregoing, Lender’s failure or delay in declaring any amount due hereunder shall not constitute a waiver of Lender’s right to declare such sum due for the same or any subsequent event that triggers Borrower’s payment obligations hereunder. Any waiver of any term or provision of the Note, the Resale Restriction Agreement, or the Deed of Trust, or any of the obligations secured thereby must be made in writing and shall be limited to the express written terms of such waiver. The rights and remedies of the parties hereunder are cumulative, and the exercise or failure to exercise one or more of such rights or remedies by either party shall not preclude the exercise by it, at the same time or different times, of any right or remedy for the same default or any other default.

14. Joint and Several Obligations. If this Note is executed by more than one person as Borrower, the obligations of each shall be joint and several.

15. Assignment by Lender; Successors and Assigns. Lender may assign its rights to receive the proceeds under this Note to any person or entity, and upon notice to Borrower of such assignment, all payments shall be made to the assignee. The promises and agreements herein contained shall bind and inure to the benefit of, as applicable, the respective heirs, executors, administrators, successors and assigns of the parties; provided however, Borrower may not assign this Note without Lender’s written consent except in accordance with the Resale Restriction Agreement and the Deed of Trust.

16. Entire Agreement; Amendments in Writing. This Note, together with the Resale Restriction Agreement and the Deed of Trust sets forth the entire understanding and agreement of Borrower and Lender with respect to the subject matter hereof. Any amendment to this Note must be in writing signed by both Lender and Borrower.

17. Non-liability for Negligence, Loss or Damage. Borrower acknowledges and agrees that the relationship between Borrower and Lender is solely that of borrower and lender, and that Lender neither undertakes nor assumes any responsibility for or duty to Borrower to select, review, inspect, supervise, pass judgment on or inform Borrower of the quality, adequacy or suitability of the Property or any other matter. Lender owes no duty of care to protect Borrower against negligent, faulty, inadequate or defecti ve building or construction, or any condition of the Property, and Borrower agrees that neither Borrower nor any of Borrower’s heirs, successors or assigns shall ever claim, have or assert any right or action against Lender for any loss, damage or other matter arising out of or resulting from any condition of the Property.

Attachment 2
270
EXHIBIT 3. SECURED PROMISSORY NOTE
FTH BMR PROMISSORY NOTE_SAMPLE -5- Rev 8|2024
Executed as of the date first written above.

BORROWER

Borrower Date
Attachment 2
271
EXHIBIT 4. LOAN AND EQUITY SHARE AGREEMENT
Exhibit 4_FTHMR_Loan-and-Equity-Agmt-2024 -1- Rev 8|2024 Recording requested by and when
recorded mail to:

City of Dublin
100 Civic Plaza
Dublin, CA 94568
Attn: City Clerk

EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383

Space above this line for Recorder’s Use

LOAN AND EQUITY SHARE AGREEMENT

City of Dublin First-Time Homebuyer Program
(Market-Rate Units)

NOTICE TO BORROWER: THIS DOCUMENT CONTAINS PROVISIONS RESTRICTING USE OF THE

PROPERTY, REFINANCING, AND ASSUMPTIONS

This Loan and Equity Share Agreement (this “Agreement”) is entered into as of Date , (“Effective Date”) by and between the City of Dublin, a municipal corporation (“ City”) and Borrower(s) (collectively, “Borrower”) regarding certain improved real property located at Property Address, Dublin, California 94568 and further described in Exhibit A attached hereto (hereinafter the “Property”).

RECITALS

WHEREAS, to further its goal of creating affordable home ownership opportunities for first -time homebuyers whose household income does not exceed 12 0% of the Alameda County median income, the City has initiated a First-Time Homebuyer Program (the “Program”), pursuant to which City provides deferred payment loans to assist first-time buyers to purchase a home in the City of Dublin;

WHEREAS, Borrower qualifies as an Eligible Homebuyer under the Program, has certified that Borrower intends to live in the Property as an owner occupant, and has agreed to maintain the Property as Borrower’s Principal Residence (as defined below);

WHEREAS, City has agreed to provide a loan to Borrower upon the terms and conditions set forth herein which loan shall be evidenced by a Secured Promissory Note executed by Borrower and dated as of the date hereof (the “Note”) and secured by a Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing executed by Borrower, dated as of the date hereof, and recorded substantially concurrently herewith in the Official Records of Alameda County (the “Deed of Trust”); and

WHEREAS, in order to fulfill the goals of the Program and maintain the City’s ability to assist first - time homebuyers, it is necessary to restrict the use of the Property and under certain circumstances, to require payment of an equity share upon resale of the Property. These restrictions are intended to prevent purchasers from using the Property for purposes incompatible with the Program. The terms and conditions Attachment 2
272
EXHIBIT 4. LOAN AND EQUITY SHARE AGREEMENT
Exhibit 4_FTHMR_Loan-and-Equity-Agmt-2024 Rev 8|2024 set forth in this Agreement are intended to ensure that the Program loan is used for housing affordable to Eligible Homebuyers.

NOW THEREFORE , in consideration of the benefits received by the Borrower and the public purposes served by the Program, Borrower and City agree as follows.

1. Definitions. As used in this Agreement, the following terms shall have the meanings set forth below. Additional terms are defined in the Recitals and text of this Agreement.

(a) “ Borrower” is defined in the preamble to this Agreement.

(b) “ Eligible Homebuyer” means a homebuyer whose income does not exceed One Hundred and Twenty percent (120%) of the Area Median Income adjusted for household size as published by the California Department of Housing and Community Development (“HCD”) for the County of Alameda/Federal Housing Administration (115% AMI) and who otherwise meets the requirements of the Program.

(c) “ City Documents” means collectively, this Agreement, the Note and the Deed of Trust.

(d) “ Program” is defined in the Recitals.

(e) “ Property” is defined in the preamble to this Agreement.

(f) “ Principal Residence ” shall mean the place where the Borrower resides on a substantially full-time basis, for not less than ten (10) months per calendar year.

2. Loan Terms. City has agreed to provide a loan in the amount of amount dollars ($00,000) (the “Loan”) upon the terms and conditions set forth in the City Documents to assist Borrower to purchase the Property . B orrower acknowledges that the City Documents provide for, among other requirements, owner-occupancy requirements, restrictions on assignment of the Loan, and a requirement that under certain circumstances, Borrower shall pay to City a share of appreciation of the Property. As more particularly set forth herein and in the Note, the Loan terms include the following:

(a) Interest Rate. Interest shall accrue on the principal balance of the Loan commencing upon the date of origination of the Note at the rate of three percent (3%) simple interest per annum. As set forth in Section 5 below, Borrower shall be obligated to pay the greater of the accrued interest or the Equity Share.

(b) Repayment; Due on Sale or Refinancing. The entire principal balance of the Loan together with all interest and other sums accrued pursuant to the City Documents (including without limitation, the Interest or Equity Share payable pursuant to Section 5) shall be due and payable in full upon the date (the “Due Date”) which is the earliest of : (i) the thirtieth (30 th) anniversary of the date of the Note, (ii) the sale, transfer, lease or encumbrance of all or any interest in the Property (other than as permitted pursuant to the Deed of Trust and this Agreement), (iii) the occurrence of an Event of Default, or (iv) the refinancing or repayment in full of any senior mortgage secured by the Property.

Attachment 2
273
EXHIBIT 4. LOAN AND EQUITY SHARE AGREEMENT
Exhibit 4_FTHMR_Loan-and-Equity-Agmt-2024 Rev 8|2024

(c) Term of this Agreement. This Agreement shall continue in effect until the entire principal balance of the Loan together with all interest and other sums accrued pursuant to the City Documents (including without limitation, the Interest or Equity Share payable pursuant to Section 5) is paid in full.

(d) Prepayment. The Loan may be prepaid in full at any time without penalty or premium provided that all sums payable pursuant to the City Documents are paid in full, including without limitation, the Interest or Equity Share payable pursuant to Section 5.

3. Borrower Representations, Warranties a nd Covenants . Borrower hereby represents, warrants and covenants that all of the following are true: (i) the financial and other information provided to City in order to qualify to purchase the Property is true and correct as of the Effective Date; (ii) Borrower shall occupy the Property as his or her principal place of residence throughout the period during which the Loan is outstanding, (iii) Borrower is a first -time homebuyer as described in the City of Dublin Fir st-Time Homebuyer Program Guidelines; and (iv) Borrower will fully cooperate by promptly providing to the City all information requested by the City to assist in monitoring Borrower's compliance with this Agreement.

4. Occupancy of Property. Borrower covenants and agrees that Borrower shall occupy the Property as Borrower's principal place of residence throughout the term of the Loan, and shall not rent or lease the Property or portion thereof during the term of the Loan. Borrower shall be considered as occupying the Property as Borrower’s principal residence if Borrower is living in the Property for at least ten (10) months out of each calendar year. Borrower shall annually provide a written certification to the City, in form provided by City, that Borrower is occupying the Property as Borrower’s principal place of residence and that Borrower is not renting or leasing the Property to another party, and shall provide such documents and other evidence as City may reasonably request to verify compliance with the requirements of this Section.

5. Equity Share or Interest. On the Due Date (as defined in Section 2(b)), in addition to repaying the principal amount of the Loan, Borrower shall pay the greater of: (i) simple interest accruing on the outstanding principal balance of the Loan at the rate of three percent (3%) per year commencing upon the date of the Note and continuing until paid in full; or (ii) an equity share calculated in accordance with the formula set forth below (the “Equity Share”). Interest for any partial year during the term of the Note shall be calculated on the basis of a 365- day year. The Equity Share shall be considered contingent interest on the principal amount of the Loan.

The Equity Share shall be equal to the sum resulting from dividing the original principal amount of the Loan by the Original Purchase Price and then multiplying that percentage by the Appreciation Amount.

“Original Purchase Price ” means the purchase price paid by Borrower to purchase the Property. The parties agree that the Original Purchase Price equals the sum of amount dollars ($000,000).

“ Fair Market Value” means the greater of: (a) the contract sale price or the actual price paid for the Property (whichever is greater) by a bona fide third party purchaser in an arms length transaction, or (b) the fair market value of the Property as determined by an appraiser certified and licensed by the State of California, selected by Borrower and approved by City.

Attachment 2
274
EXHIBIT 4. LOAN AND EQUITY SHARE AGREEMENT
Exhibit 4_FTHMR_Loan-and-Equity-Agmt-2024 Rev 8|2024

“Appreciation Amount” means the amount calculated by subtracting the Original Purchase Price and the Cost of Eligible Capital Improvements (as defined in Section 5.1) from the Fair Market Value.

As an illustration, if the Original Purchase Price was $400,000 and the principal amount of the Loan was $40,000, then the percentage of appreciation that the Borrower would owe would be $400,000 divided by $40,000 = 10%. If upon resale the Fair Market Value of the Property is $600,000 and the Cost of Eligible Capital Improvements is $25,000, then the Appreciation Amount would be $600,000 minus $25,000 minus $400,000 = $175,000. The Equity Share payable by the Borrower would 10% of $175,000 = $17,500.

5.1 Eligible Capital Improvements. For purposes of calculating the Equity Share pursuant to Section 5, the “Cost of Eligible Capital Improvements” means the original actual cost of capital improvements made to the Property (i.e., improvements that add to the value of the home, prolong its useful life, or adapt it to new uses) only if (i) the work to install or construct the capital improvements has been performed with and pursuant to all required permits, and (ii) the cost of the capital improvements has been verified by City in writing no later than sixty (60) days following completion of the work. City agrees that it shall issue such written verification to Borrower within ten (10) business days following City’s receipt of all reasonably required documentation including copies of permits and proof of payment for the construction or installation of the capital improvements.

Exhibit B attached hereto includes a list of capital improvements that will be accepted by City .

Borrower may wish to consult Internal Revenue Service Publication 523 (2006) for additional information regarding capital improvements.

6. Assignment. The City may assign any or all of its rights and obligations under this Agreement, the Note, or the Deed of Trust, to any person or entity without the consent of Borrower, and after such assignment, references to the City herein shall be references to the assignee. Borrower may not assign any of its rights or obligations under this Agreement, the Note, or the Deed of Trust to any person or entity without the express prior written consent of the City.

7. Subordination/CalHFA Held Mortgage . This Agreement shall be subordinate to the lien of any purchase money deed of trust recorded contemporaneously herewith and any deed of trust recorded against the Property for the benefit of the California Housing Finance Agency. City agrees that in order to assist qualified purchasers to secure purchase money financing for the acquisition of the Property, the City will enter into a subordination agreement with a senior purchase money lender to subordinate this Agreement under such terms as the City and the senior purchase money lender shall negotiate. Any subordination agreement to be executed by City shall include notice and cure rights for City regarding any defaults in the mortgage to which the City is subordinating.

8. Default and Remedies . An Event of Default shall arise hereunder upon the occurrence of any of the following:

(a) Borrower’s representations made in this Agreement or in Borrower’s application for the Loan are determined to be materially false or misleading.

(b) Borrower fails to use the Property as Borrower’s Principal Residence; Attachment 2
275
EXHIBIT 4. LOAN AND EQUITY SHARE AGREEMENT
Exhibit 4_FTHMR_Loan-and-Equity-Agmt-2024 Rev 8|2024

(c) The sale, conveyance, or transfer of the Property (including a sale under a deed of trust in the event of foreclosure) if following such sale, conveyance or transfer, Borrower’s remaining ownership interest in the Property is less than fifty percent (50%) except as p ermitted pursuant to Section 6.9 of the Deed of Trust.

(d) An event of default arises under any other loan secured by the Property and such default remains uncured following the expiration of any applicable cure period;

(e) Borrower fails to pay when due any sum payable pursuant to th e Note or this Agreement, and such failure remains uncured fifteen (15) days beyond the due date for such payment;

(f) A lien is recorded against the Property other than the lien of a bona fide first mortgage loan or junior loan approved by City;

(g) An Event of Default arises under the Deed of Trust or the Note and remains uncured beyond any applicable cure period; or

(h) Borrower declares bankruptcy or makes an assignment of assets for the benefit of creditors.

Upon the occurrence of an Event of Default, City may exercise any remedies available under law or in equity, including without limitation, any or all of the following, none of which shall be an exclusive remedy:

(a) Declare the Loan immediately due and payable without further demand and accelerate payments due under the Note;

(b) Invoke the power of sale under the Deed of Trust;

(c) Apply to a court of competent jurisdiction for such relief at law or in equity as may be appropriate; and

(d) Declare a default under the Note and Deed of Trust and pursue all City remedies under such documents.

9. Notices. Except as otherwise specified in this Agreement, all notices required to be sent pursuant to this Agreement shall be made by personal delivery or by deposit in the United States mail, first - class, postage prepaid, and shall be deemed to have been delivered and received on the date of personal delivery or five (5) days after deposit in the mail, if sent to the following address:

City: City of Dublin
100 Civic Plaza
Dublin, CA 94568
Attn: Housing Division

Borrower: Name
Mailing Address
Attachment 2
276
EXHIBIT 4. LOAN AND EQUITY SHARE AGREEMENT
Exhibit 4_FTHMR_Loan-and-Equity-Agmt-2024 Rev 8|2024 Dublin, CA 94568

10. Attorneys' Fees. If either party initiates legal proceedings to interpret or enforce its rights under this Agreement, the prevailing party in such action shall be entitled to an award of reasonable attorneys' fees and costs in additions to any other recovery to which such party is entitled under this Agreement.

11. Nonliability for Negligence, Loss or Damage. Borrower acknowledges and agrees that the relationship between Borrower and City is solely that of a borrower and the administrator of a loan program, and that City neither undertakes nor assumes any responsibility for or duty to Borrower to select, revi ew, inspect, supervise, pass judgment on or inform Borrower of the quality, adequacy or suitability of the Property or any other matter. City owes no duty of care to protect Borrower against negligent, fault y, inadequate or defective building or construction, or any condition of the Property, and Borrower agrees that neither Borrower nor any of Borrower’s heirs, successors or assigns shall ever claim, have or assert any right or action against City for any loss, damage or other matter arising out of or resulting from any condition of the Property.

1 2. Governing Law. This Agreement shall be construed in accordance with and be governed by the laws of the State of California.

13. Severability. If any provision of this Agreement shall be held by a court of competent jurisdiction to 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.

14. No Waiver; Remedies Cumulative. No waiver of any breach, default or failure of condition under the City Documents, shall be implied from City’s failure or delay in declaring a default or exercising any of City’s rights or remedies with respect to such breach, default or failure, or from any previous waiver of any similar or unrelated breach, default or failure. Any waiver of any term or provision of the City Documents must be made in writing and shall be limited to the express written terms of such waiver. The rights and remedies of the parties hereunder are cumulative, and the exercise or failure to exercise one or more of such rights or remedies by either party shall not preclude the exercise by it, at the same time or different times, of any right or remedy for the same default or any other default.

15. Joint and Several Obligations. If this Agreement is executed by more than one person as Borrower, the obligations of each shall be joint and several.

16. Entire Agreement; Amendments in Writing. This Agreement, together with the Note and the Deed of Trust sets forth the entire understanding and agreement of Borrower and City with respect to the subject matter hereof. Any amendment to this Agreement must be in writing signed by both City and Borrower.

SIGNATURES ON NEXT PAGE

Attachment 2
277
EXHIBIT 4. LOAN AND EQUITY SHARE AGREEMENT
Exhibit 4_FTHMR_Loan-and-Equity-Agmt-2024 Rev 8|2024 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

BORROWER

Borrower

CITY
City of Dublin, a California municipal corporation

City Manager

ATTEST:

City Clerk

SIGNATURES MUST BE NOTARIZED.

Attachment 2
278
EXHIBIT 4. LOAN AND EQUITY SHARE AGREEMENT
Exhibit 4_FTHMR_Loan-and-Equity-Agmt-2024 Rev 8|2024

NOTARY ACKNOWLEDGMENT
[Insert Here]

Attachment 2
279
EXHIBIT 4. LOAN AND EQUITY SHARE AGREEMENT

Exhibit 4_FTHMR_Loan-and-Equity-Agmt-2024 Rev 8|2024 EXHIBIT A: LEGAL DESCRIPTION
[Insert here]
Attachment 2
280
EXHIBIT 4. LOAN AND EQUITY SHARE AGREEMENT

Exhibit 4_FTHMR_Loan-and-Equity-Agmt-2024 Rev 8|2024 EXHIBIT B: EXAMPLES OF CAPITAL IMPROVEMENTS

(Based upon Internal Revenue Service Publication 523.)

Improvements. These add to the value of the home, prolong its useful life, or adapt it to new uses. The cost of additions and other improvements is added to the owner’s basis in the property.

Examples.

Putting a recreation room or another bathroom in an unfinished basement, putting up a new fence, putting in new plumbing or wiring, putting on a new roof, or paving an unpaved driveway are improvements. An addition to the house, such as a new deck, a sunroom, or a new garage, is also an improvement.

The following chart lists some other examples of improvements.

Additions
Bedroom
Bathroom
Deck
Garage
Porch
Patio
Heating & Air Conditioning
Heating system
Central air conditioning
Furnace
Duct work
Central humidifier
Filtration system
Lawn & Grounds
Landscaping
Driveway
Walkway
Fence
Retaining wall
Sprinkler system
Swimming pool

Miscellaneous
Storm windows, doors
New roof
Central vacuum
Wiring upgrades
Satellite dish
Security system

Plumbing
Septic system
Water heater
Soft water system
Filtration system

Interior
Improvements
Built-in appliances
Kitchen modernization
Flooring
Wall-to-wall carpeting

Insulation
Attic
Walls
Floors
Pipes and duct work

Improvements no longer part of home. The adjusted basis does not include the cost of any improvements that are replaced and are no longer part of the home.

Attachment 2
281
EXHIBIT 5. DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING, AND SECURITY

AGREEMENT
Exhibit 5_FTHMR_Deed-of-Trust-2024 -1- Rev 8|2024
Recording requested by and when
recorded mail to:

City of Dublin
100 Civic Plaza
Dublin, CA 94568
Attn: City Clerk

EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383

Space above this line for Recorder’s Use

DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING AND SECURITY AGREEMENT

City of Dublin First-Time Homebuyer Program
(Market-Rate Units)

THERE ARE RESTRICTIONS ON THE USE OF THE PROPERTY ENCUMBERED BY THIS DEED OF TRUST. THERE ARE LIMITATIONS ON THE EXTENT TO WHICH THIS PROPERTY MAY BE ENCUMBERED BY JUNIOR FINANCING AND UPON TRUSTOR’S RIGHTS TO REFINANCE EXISTING

MORTGAGES

THIS DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING AND SECURITY AGREEMENT (“Deed of Trust”) is made as of Date of signing (“Effective Date”) by Borrower(s) Name (collectively, “Trustor”) to City of Dublin (the “Trustee”) whose business address is 100 Civic Plaza, Dublin, California 94568, for the benefit of THE CITY OF DUBLIN a municipal corporation (“Beneficiary”).

WHEREAS, Trustor is the owner of the real property located at Property Address in the City of Dublin, Alameda County, California, and more particularly described in Exhibit A attached hereto and incorporated herein;

WHEREAS, to assist Trustor in the acquisition of such property, Beneficiary provided a deferred payment loan in the original principal amount of Loan Amount Written dollars ($00,000) (the “Loan”) funded by Beneficiary’s First-Time Homebuyer Program;

WHEREAS, in connection with the Loan, Trustor and Beneficiary entered into a Loan and Equity Share Agreement dated as of the Effective Date and recorded in the Official Records of Alameda County substantially concurrently herewith (the “Loan Agreement”) and Trustor executed and delivered to Beneficiary a Secured Promissory Note dated as of the Effective Date (the “Note”);

WHEREAS, among other provisions, the Loan Agreement provides that during the term of the Loan:
(i)Trustor is obligated to use the Property as Trustor’s Principal Residence (as defined in the Loan Agreement); (ii) there are restrictions on Trustor’s ability to encumber the property and to refinance the existing loans secured thereby ; and (iii) upon repayment of the Loan and upon the occurrence of specified Attachment 2
282
EXHIBIT 5. DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING, AND SECURITY

AGREEMENT
Exhibit 5_FTHMR_Deed-of-Trust-2024 -2- Rev 8|2024
events, Trustor is obligated to pay to Beneficiary a sum equal to the greater of interest accrued on the Loan or an Equity Share (as defined in the Loan Agreement).

NOW THEREFORE, to secure repayment of the Loan and the full and timely performance of Trustor’s obligations under the Note and the Loan Agreement, it is agreed as follows.

1. Grant in Trust . Trustor, in consideration of the indebtedness herein recited and the trust herein created, hereby irrevocably and unconditionally grants, transfers, conveys and assigns to Trustee in trust for the benefit of Beneficiary, with power of sale and right of entry and possession, all of Trustor’s right, title and interest now held or hereafter acquired in and to the following: (a) all of that certain real property located at Property Address in Dublin, California in the County of Alameda and the State of California, which is more particularly described in Exhibit A, attached hereto and incorporated herein by this reference (the “Land”); (b) all buildings, improvements and fixtures now or hereafter erected on the Property and all replacements and additions thereto (“Improvements”); (c) all easements, rights of way, appurtenances and other rights used in connection with the Property or as a means of access thereto (“Appurtenances”); (d) all fixtures now or hereafter attached to or used in and about the Property or the Improvements or hereafter located or constructed on the Property, and all renewals or replacements thereof or articles in substitution therefor, whether or not the same are, or shall be attached to the Improvements in any manner (“Fixtures and Equipment”); and (e) all leases, subleases, licenses and other agreements relating to use or occupancy of the Property (“Leases”) and all rents or other payments which may now or hereafter accrue or otherwise become payable to or for the benefit of Trustor (“Rents”) (whether or not such Leases and Rents are permitted pursuant to the Loan Agreement).

All of the above- referenced Property, Improvements, Appurtenances, Fixtures and Equipment, Leases and Rents are herein referred to collectively as the “Property.”

2. Obligations Secured. This Deed of Trust is given for the purpose of securing payment and performance of all of the following (the “Secured Obligations”): (i) all present and future indebtedness evidenced by the Note (including all principal, interest, shared appreciation and all other amounts payable pursuant to the Note) and all amendments, modifications, extensions and renewals of the Note; (ii) all present and future obligations of Trustor set forth in this Deed of Trust or in the Loan Agreement; (iii) all additional present and future obligations of Trustor to Beneficiary under any other agreement or instrument acknowledged by Trustor (whether existing now or in the future) which states that it is or such obligations are, secured by this Deed of Trust; (iv) all modifications, supplements, amendments, renewals, and extensions of any of the foregoing, whether evidenced by new or additional documents; and (v) reimbursement of all amounts advanced by or on behalf of Beneficiary to protect Beneficiary’s interests under this Deed of Trust.

3. Assignment of Rents, Issues, and Profits. Trustor hereby irrevocably, absolutely, presently and unconditionally assigns to Beneficiary the rents, royalties, issues, profits, revenue, income and proceeds of the Property. This is an absolute assignment and not an assignment for security only. Subject to the prohibition on the lease or rental of the Property as set forth in the Loan Agreement, Beneficiary hereby confers upon Trustor a license to collect and retain such rents, royalties, issues, profits, revenue, income and proceeds as they become due and payable prior to any Event of Default hereunder. Upon the occurrence of any such Event of Default, Beneficiary may terminate such license without notice to or demand upon Trustor and without regard to the adequacy of any security for the indebtedness hereby secured, and may either in person, by agent, or by a receiver to be appointed by a court, enter upon and take possession of the Property Attachment 2
283
EXHIBIT 5. DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING, AND SECURITY

AGREEMENT
Exhibit 5_FTHMR_Deed-of-Trust-2024 -3- Rev 8|2024
or any part thereof, and sue for or otherwise collect such rents, issues, and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorneys’ fees, to any indebtedness secured hereby, and in such order as Beneficiary may determine.

Beneficiary’s right to the rents, royalties, issues, profits, revenue, income and proceeds of the Property does not depend upon whether or not Beneficiary takes possession of the Property. The entering upon and taking possession of the Property, the collection of such rents, issues, and profits, and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. If an Event of Default occurs while Beneficiary is in possession of all or part of the Property and/or is collecting and applying Rents as permitted under this Deed of Trust, Beneficiary, Trustee and any receiver shall nevertheless be entitled to exercise and invoke every right and remedy afforded any of them under this Deed of Trust and at law or in equity, including the right to exercise the power of sale granted hereunder. Regardless of whether or not Beneficiary, in person or by agent, takes actual possession of the Land and Improvements, Beneficiary shall not be deemed to be a “mortgagee in possession,” shall not be responsible for performing any obligation of the lessor under any Lease, shall not be liable in any manner for the Property, or the use, occupancy, enjoyment or operation of any part of it , and unless due solely to the willful misconduct or gross negligence of Beneficiary, shall not be responsible for any dangerous or defective condition of the Property or any negligence in the management, repair or control of the Property.

4. Fixture Filing. This Deed of Trust is intended to be and constitutes a fixture filing pursuant to the provisions of the Uniform Commercial Code (“UCC”) with respect to all of the Property constituting fixtures, is being recorded as a fixture financing statement and filing under the UCC, and covers property, goods and equipment which are or are to become fixtures related to the Land and the Improvements. Trustor covenants and agrees that this Deed of Trust is to be filed in the real estate records of Alameda County and shall also operate from the date of such filing as a fixture filing in accordance with Section 9502 and other applicable provisions of the UCC. This Deed of Trust shall also be effective as a financing statement covering minerals or the like (including oil and gas) and accounts subject to the UCC, as amended. Trustor shall be deemed to be the "debtor" and Beneficiary shall be deemed to be the "secured party" for all purposes under the UCC.

The full name of Trustor and the mailing address of Trustor are set forth in Section 9.7 of this Deed of Trust.

5. TRUSTOR REPRESENTATIONS, WARRANTIES AND COVENANTS

5 .1 Trustor’s Estate. Trustor represents and covenants t hat Trustor is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property . Trustor agrees to warrant and defend generally the title of the Property against all claims and demands subject to any declarations, easements, or restrictions listed in the schedule of ex ceptions to coverage in any title insurance policy insuring Beneficiary’s interest in the Property.

5.2 Repayment of Sums Owed under Note and Loan Agreement . Trustor will promptly pay to Beneficiary when due all sums payable under the Note and the Loan Agreement, including all principal, interest and shared appreciation required by the Note. The Note contains the following provisions concerning payment of interest and shared appreciation:

[On the Due Date], in addition to repaying the principal amount of this Note, Borrower shall pay the greater of: (i) simple interest accruing on the outstanding principal balance of the Loan at the rate of three percent (3%) per year commencing upon the date of this Note until paid in full (“Interest”); or (ii) an equity share calculated in accordance with the formula set forth below (the “Equity Share”).

Attachment 2
284
EXHIBIT 5. DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING, AND SECURITY

AGREEMENT
Exhibit 5_FTHMR_Deed-of-Trust-2024 -4- Rev 8|2024
Interest for any partial year during the term of this Note shall be calculated on the basis of a 365-day year. The Equity Share shall be considered contingent interest on the principal due hereunder.

The Equity Share shall be equal to the sum resulting from dividing the original principal amount of the Loan by the Original Purchase Price and then multiplying that percentage by the Appreciation Amount.

“Original Purchase Price ” means the purchase price paid by Borrower to purchase the Property. The parties agree that the Original Purchase Price equals the sum of Sale Amount Written dollars ($000,000).

“Fair Market Value” means the greater of: (a) the contract sale price or the actual price paid for the Property (whichever is greater) by a bona fide third party purchaser in an arms length transaction, or (b) the fair market value of the Property as determined by an appraiser certified and licensed by the State of California, selected by Borrower and approved by Lender.

“Appreciation Amount ” means the amount calculated by subtracting the Original Purchase Price and the Cost of Eligible Capital Improvements (as defined in Section 5.1 of the Loan Agreement) from the Fair Market Value.

As an illustration, if the Original Purchase Price was $400,000 and the principal amount of the Loan was $40,000, then the percentage of appreciation that the Borrower would owe would be $40 0,000 divided by $40,000 = 10%. If upon resale the Fair Market Value of the Property is $600,000 and the Cost of Eligible Capital Improvements is $25,000, then the Appreciation Amount would be $600,000 minus $25,000 minus $400,000 = $175,000. The Equity Share payable by the Borrower would 10% of $175,000 = $17,500.

5.3 Performance of Covenants . Trustor will observe and perform all of Trustor’s covenants and agreements set forth in the Loan Agreement, the Note, this Deed of Trust and all other instruments secured by the Property.

5.4 Maintenance of the Property. Trustor agrees (a) to keep the Property in good repair and in decent, safe, sanitary, tenantable condition and repair and permit no waste thereof; (b) not to commit or suffer to be done or exist on or about the Land any condition causing the Property to become less valuable; (c) to repair, restore or rebuild promptly any buildings or improvements on the Land that may become damaged or be destroyed while subject to the lien of this Deed of Trust; (d) to comply with all applicable laws, ordinances and governmental regulations affecting the Property or requiring any alteration or improvement thereof, and not to suffer or permit any violations of any such law, ordinance or governmental regulation, nor of any covenant, condition or restriction affecting the Property; and (e) not to initiate or acquiesce in any change in any zoning or other land use or legal classification which affects any of the Property without the Beneficiary’s written consent. If there arises a condition in contravention of this Section, and if the Trustor has not cured such condition within thirty (30) days after receiving a Beneficiary notice of such a condition, then in addition to any other rights available to the Beneficiary , the Beneficiary shall have the right (but not the obligation) to perform all acts necessary to cure such condition, and to establish or enforce a lien or other encumbrance against the Property to recover its cost of cure.

Attachment 2
285
EXHIBIT 5. DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING, AND SECURITY

AGREEMENT
Exhibit 5_FTHMR_Deed-of-Trust-2024 -5- Rev 8|2024

5.5 Appear and Defend. Trustor shall appear in and defend any action or proceeding purporting to affect the Property or the rights or powers of the Beneficiary or Trustee, and shall pay all costs and expenses, including cost of evidence of title and attorney’s fees in a reasonable sum, in any such action or proceeding in which the Beneficiary or Trustee may appear, and in any suit brought by the Beneficiary to foreclose this Deed of Trust.

5.6 Charges; Liens. Trustor shall pay prior to delinquency all taxes , assessments, and other charges, fines, and impositions affecting the Property directly to the payee thereof. Upon request of Beneficiary, Trustor shall promptly furnish to Beneficiary copies of all notices of such amounts due and shall promptly furnish to Beneficiary receipts evidencing all such payments made. Trustor shall pay when due each obligation secured by or reducible to a lien, charge or encumbrance which now does or later may encumber or appear to encumber all or part of the Property or any interest therein, whether or not such lien, charge or encumbrance is or would be senior or subordinate to this Deed of Trust. Trustor shall not be required to pay any tax, charge or assessment so long as Trustor is actively contesting its validity in good faith and by appropriate legal proceedings which will operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. Trustor shall post security for the payment of such contested claims as may be requested by the Beneficiary.

5.7 Insurance. Trustor shall keep the Land and the Improvements insured by a standard all-risk property insurance policy in an amount equal to the replacement value of the Property with loss payable to the Beneficiary. The insurance carrier providing such insurance shall be licensed to do business in the State of California and may be chosen by Trustor, subject to approval by Beneficiary. All insurance policies and renewals thereof will be in a form acceptable to the Beneficiary, and will include a standard mortgagee clause with standard lender's endorsement in favor of the holder of any senior lien and the Beneficiary as their interests may appear and in a form acceptable to the Beneficiary. The Beneficiary shall have the right to hold, or cause its designated agent to hold, the policies and renewals thereof, and Trustor shall promptly furnish to the Beneficiary, or its designated agent, the original insurance policies or certificates of insurance, all renewal notices and all receipts of paid premiums. In the event of loss, Trustor will give prompt notice to the insurance carrier and the Beneficiary or its designated agent. The Beneficiary, or its designated agent, may make proof of loss if not made promptly by Trustor. The Beneficiary shall receive thirty (30) days advance written notice of the cancellation, expiration or termination or any material change in the coverage afforded by any of the insurance policies required under this Section.

Unless otherwise permitted by the Beneficiary in writing, insurance proceeds, subject to the rights of the holder of any senior lien, will be applied to restoration or repair of the Property damaged. If the Property is abandoned by Trustor, or if Trustor fails to respond to the Beneficiary, or its designated agent, within thirty (30) days from the date notice is mailed by either of them to Trustor that the insurance carrier offers to settle a claim for insurance benefits, the Beneficiary, or its designated agent, is authorized to collect and apply the insurance proceeds at the Beneficiary's option either to restoration or repair of the Property or to pay amounts due under the Loan Agreement and the Note.

If the Property is acquired by the Beneficiary, all right, title and interest of Trustor in and to any insurance policy and in and to the proceeds thereof resulting from damage to the Property prior to the sale or acquisition will pass to the Beneficiary to the extent of the sums secured by this Deed of Trust immediately prior to such sale or acquisition, subject to the rights of the holder of any senior lien.

Attachment 2
286
EXHIBIT 5. DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING, AND SECURITY

AGREEMENT
Exhibit 5_FTHMR_Deed-of-Trust-2024 -6- Rev 8|2024
Renewal policies and any replacement policies, together with premium receipts satisfactory to the Beneficiary, shall be delivered to the Beneficiary at least thirty (30) days prior to the expiration of existing policies. Neither Trustee nor the Beneficiary shall by reason of accepting, rejecting, approving or obtaining insurance incur any liability for the existence, nonexistence, form or legal sufficiency of such insurance, or solvency of any insurer for payment of losses.

5.8 Use of Property. Trustor shall not permit or suffer the use of any of the Property for any purpose other than as a single family residential dwelling.

6. IT IS MUTUALLY AGREED THAT:

6.1. Protection of Beneficiary ’s Security . If Trustor fails to perform the covenants and agreements contained in this Deed of Trust, or if any action or proceeding is commenced which materially affects Beneficiary’s interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, arrangements or proceedings involving a bankrupt or decedent, foreclosure of any mortgage secured by the Property or sale of the Property under a power of sale of any instrument secured by the Property, then Beneficiary, at Beneficiary’s option, upon notice to Trustor, may make such appearance, disburse such sums and take such action as is necessary to protect Beneficiary’s interest, including, but not limited to, the purchase of insurance, disbursement of reasonable attorney’s fees and entry upon the Property to make repairs. Any amounts disbursed by Beneficiary pursuant to this Section, with interest thereon, shall become additional indebtedness of Trustor secured by this Deed of Trust. Unless Trustor and Beneficiary agree to other terms of payment, such amounts shall be payable upon notice from Beneficiary to Trustor requesting payment thereof, and shall bear interest from the date of disbursement at the highest rate permissible under applicable law. Nothing contained in this Section shall require Beneficiary to incur any expense or take any action hereunder.

6.2 Inspection. Beneficiary or its agent may make or cause to be made reasonable entries upon and inspections of the Property. Beneficiary shall give Trustor notice at the time of or prior to any such inspection specifying reasonable cause for the inspection

6.3 Awards and Damages. All judgments, awards of damages, settlements and compensation made in connection with or in lieu of (a) taking of all or any part of or any interest in the Property by or under assertion of the power of eminent domain, (b) any damage to or destruction of the Property or any part thereof by insured casualty, and (c) any other injury or damage to all or any part of the Property, are hereby assigned to and shall be paid to the Beneficiary. The Beneficiary is authorized and empowered (but not required) to collect and receive any such sums and is authorized to apply them in whole or in part upon any indebtedness or obligation secured hereby, in such order and manner as the Beneficiary shall determine at its option. The Beneficiary shall be entitled to settle and adjust all claims under insurance policies provided under this Deed of Trust and may deduct and retain from the proceeds of such insurance the amount of all expenses incurred by it in connection with any such settlement or adjustment. All or any part of the amounts so collected and recovered by the Beneficiary may be released to Trustor upon such conditions as the Beneficiary may impose for its disposition. Application of all or any part of the amounts collected and received by the Beneficiary or the release thereof shall not cure or waive any default under this Deed of Trust. If the Property is abandoned by Trustor, or if, after notice by Beneficiary to Trustor that the condemnor offers to make an award or settle a claim for damages, Trustor fails to respond to Beneficiary within thirty (30) days after the date such notice is mailed, Beneficiary is authorized to collect and apply the proceeds, at Beneficiary ’s option, either to restoration or repair of the Property or to the sum secured by this Deed of Trust.

Attachment 2
287
EXHIBIT 5. DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING, AND SECURITY

AGREEMENT
Exhibit 5_FTHMR_Deed-of-Trust-2024 -7- Rev 8|2024

6.4 Prohibition on Transfers of Interest. With the exception of the transfers permitted pursuant to Section 6.9 below, if all or any part of the Property or an interest therein is sold or transferred by Trustor without Beneficiary’s prior written consent, Beneficiary may, at Beneficiary’s option, declare all sums secured by this Deed of Trust to be immediately due and payable. If Beneficiary exercises such option to accelerate, Beneficiary shall mail Trustor notice of acceleration in accordance with Sections 7 .2 and 9.7 hereof. Such notices shall provide a period of not less than 30 days from the date the notice is mailed within which Trustor may pay the sums declared due. If Trustor fails to pay such sums prior to the expiration of such period, Beneficiary may, without further notice or demand on Trustor, invoke any remedies permitted by Section

7.2(a) hereof.

6.5 Sale or Forbearance . No sale of the Property, forbearance on the part of Beneficiary or extension of the time for payment of the indebtedness hereby secured shall operate to release, discharge, waive, modify, change or affect the liability of Trustor either in whole or in part.

6.6 Beneficiary’s Rights to Release. Without affecting the liability of any person for payment of any indebtedness hereby secured (other than any person released pursuant hereto), including without limitation any one or more endorsers or guarantors, and without affecting the lien hereof upon any of the Property not released pursuant hereto, at any time and from time to time without notice: (a) Beneficiary may in its sole discretion : (i ) release any person now or hereafter liable for payment of any or all such indebtedness, (iii) extend the time for or agree to alter the terms of payment of any or all of such indebtedness, and (iii) release or accept additional security for such indebtedness, or subordinate the lien or charge hereof; and (b) Trustee, acting pursuant to the written request of the Beneficiary, may reconvey all or any part of the Property, consent to the making of any map or plot of the Land, join in granting any assessment thereon, or join in any such agreement of extension or subordination.

6.7 Reconveyance. Upon payment of all sums secured by this Deed of Trust, Beneficiary shall request Trustee to reconvey the Property and shall surrender this Deed of Trust and all notes evidencing indebtedness secured by this Deed of Trust to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legally entitled thereto. Such person or persons shall pay all costs of recordation, if any. The recitals in the reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof.

6.8 Requirement of Owner-Occupancy. Until such time as all sums payable pursuant to the Note are paid in full, Trustor shall occupy the Property as Trustor’s principal place of residence in accordance with the Loan Agreement.

6.9 Permitted Transfers. The following transfers shall not be deemed to be a default hereunder:

(a) The transfer of the Property to the surviving joint tenant by devise, descent or operation of the law, on the death of a joint tenant.

(b) A transfer of the Property where the spouse or domestic partner of Trustor becomes a co- owner of the Property.

Attachment 2
288
EXHIBIT 5. DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING, AND SECURITY

AGREEMENT
Exhibit 5_FTHMR_Deed-of-Trust-2024 -8- Rev 8|2024
(c) A transfer of the Property resulting from a decree of dissolution of marriage, legal separation or from an incidental property settlement agreement by which the spouse of Trustor b ecomes an owner of the Property.

(d) A transfer to an inter vivos or living trust in which the Trustor is and remains the beneficiary of the trust and the occupant of the Property.

(e) A sale, conveyance, or other transfer when following such sale, conveyance or transfer, the original Trustor retains ownership of at least 50% of the Property.

7. EVENTS OF DEFAULT

7.1 Events of Default. Any one or more of the following events shall constitute a default under this Deed of Trust:

(a) Failure to use the Property as Trustor’s Principal Residence in violation of the Loan Agreement;

(b) The sale, conveyance, or other transfer of the Property (including a foreclosure sale), if following such sale, conveyance or transfer, Trustor’s remaining ownership interest in the Property is less than fifty percent (50%), except as provided in Section

6.9. (c) An event of default arises under any other loan secured by the Property and such default remains uncured following the expiration of any applicable cure period.

(d) Trustor encumbers or refinances the Property in violation of the Loan Agreement.

(e) Trustor fails to observe or perform any other covenant, condition, or agreement to be observed or performed by Trustor pursuant to the Note, the Loan Agreement or this Deed of Trust, including without limitation, the failure to pay any sum due pursuant to any such document.

(f) Trustor declares bankruptcy or makes an assignment of assets for the benefit of creditors.

7 .2 A cceleration and Sale.

(a) Default; Remedies. Upon Trustor’s breach of any covenant or agreement of Trustor under the Note, the Loan Agreement or this Deed of Trust (including without limitation,Trustor’s encumbrance or refinancing of the Property in violation of the foregoing agreements), Beneficiary shall mail notice to Trustor as provided in Section 9.7 hereof specifying: (i) the nature of the breach; (ii) the action required to cure such breach; (iii) a date no less than thirty (30) days from the date the notice is mailed to Trustor , by which such breach must be cured; and (iv) that failure to cure such breach on or before the date specified in the notice may result in acceleration of the Loan and the sale of the Property. The notice shall further inform Trustor of Trustor’s right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any other defense of Trustor to acceleration and sale. If the breach is not cured on or before Attachment 2
289
EXHIBIT 5. DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING, AND SECURITY

AGREEMENT
Exhibit 5_FTHMR_Deed-of-Trust-2024 -9- Rev 8|2024
the date specified in the notice, Beneficiary at Beneficiary’s option may: (a) declare all of the sums secured by this Deed of Trust to be immediately due and payable without further demand and may invoke the power of sale; (b) commence an action to foreclose this Deed of Trust as a mortgage; and (c) pursue any other remedy permitted under California law. Beneficiary shall be entitled to collect from the Trustor , or from the proceeds of the sale of the Property , all reasonable costs and expenses incurred in pursuing the remedies provided in this paragraph, including, but not limited to, reasonable attorneys’ fees.

(b) Trustor’s Right to Reinstate . Notwithstanding Beneficiary’s acceleration of the sums secured by this Deed of Trust, Trustor will have the right to have any proceedings begun by Beneficiary to enforce this Deed of Trust discontinued at any time prior to five (5) days before sale of the Property pursuant to the power of sale contained in this Deed of Trust or at any time prior to entry of the judgment enforcing this Deed of Trust if: (1) Trustor pays Beneficiary all sums which would be then due under this Deed of Trust and the Note, had no acceleration occurred; (2) Trustor pays all reasonable expenses incurred by Beneficiary and Trustee in enforcing the covenants and agreements of Trustor contained in this Deed of Trust, remedies including, but not limited to, reasonable attorneys’ fees; and (3) Trustor takes such action as Beneficiary may reasonably require to assure that the lien of this Deed of Trust, Beneficiary ’s interest in the Property and Trustor’s obligation to pay the sums secured by this Deed of Trust shall continue unimpaired.

Upon such payment and cure by Trustor, this Deed of Trust and the obligations secured hereby will remain in full force and effect as if no acceleration had occurred.

(c) Sale. After delivery to Trustee of a Notice of Default and Demand for Sale and after the expiration of such time and the giving of such notice of default and sale as may then be required by law, and without demand on Trustor, Trustee shall sell the Property at the time and place of sale fixed by it in said notice of sale, at public auction to the highest bidder for cash in lawful money of the United States of America, payable at time of sale. Trustee may postpone sale of all or any portion of the Property by publ ic announcement at such time and place of sale and from time to time thereafter may postpone such sale by public announcement at the time and place fixed by the preceding postponement. Any person, including Trustor, Trustee or the Beneficiary, may purchase at such sale. Upon such sale by Trustee it shall deliver to such purchaser its deed conveying the Property so sold, but without any covenant or warranty expressed or implied. The recitals in such deed of any matters or facts shall be conclusive proof of their truthfulness. Upon sale by Trustee and after deducting all costs, expenses and fees of Trustee, Trustee shall apply the proceeds of sale to the payment of the indebtedness hereby secured, including without limitation the indebtedness evidenced by the Note, any advances made or costs or expenses paid or incurred by Beneficiary under this Deed of Trust, any indebtedness evidenced by any other instrument hereby secured, and all other sums then secured hereby, including without limitation, interest and shared appreciation as provided in th e Note and Loan Agreement, in such order as the Beneficiary shall direct; and then the remainder, if any, shall be paid to the person or persons legally entitled thereto.

(d) Assignment of Rents; Appointment of Receiver; Beneficiary in Possession.

Upon acceleration under Section 7.2(a) or abandonment of the Property, Beneficiary (in person, by agent or by judicially appointed receiver) shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the Property (if any) including those past due. All rents collected by Beneficiary or the Receiver shall be applied first to payment of the costs of management of the Property and collection of rents including, but not limited to, receiver’s fees, premiums on receiver’s bonds and reasonable attorney’s fees, and then to the sums secured by this Deed of Trust . Beneficiary and the receiver shall be liable to account only for those rents actually received. The provisions of this paragraph and Section 7.2(a) shall operate subject to the claims of prior lien holders.

Attachment 2
290
EXHIBIT 5. DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING, AND SECURITY

AGREEMENT
Exhibit 5_FTHMR_Deed-of-Trust-2024 -10- Rev 8|2024

7.3 Remedies Cumulative; No Waiver. No exercise of any right or remedy by the Beneficiary or Trustee hereunder shall constitute a waiver of any other right or remedy herein contained or provided by law, and no delay or forbearance by the Beneficiary or Trustee in exercising any such right or remedy hereunder shall operate as a waiver thereof or preclude the exercise thereof in any continued or subsequent default hereunder. All remedies provided in this Deed of Trust are distinct and cumulative to any other right or remedy under this Deed of Trust or any other document, or afforded by law or equity, and may be exercised concurrently, independently or successively.

7.4 Trustee Substitution. The irrevocable power to appoint a substitute trustee or trustees hereunder is hereby expressly granted to the Beneficiary, to be exercised at any time hereafter, without specifying any reason therefore, by filing for record in the office where this Deed of Trust is recorded a deed of appointment, and said power of appointment of successor trustee or trustees may be exercised as often as and whenever the Beneficiary deems advisable. The exercise of said power of appointment, no m atter how often, shall not be deemed an exhaustion thereof, and upon recording of such deed or deeds of appointment, the trustee or trustees so appointed shall thereupon, without further act or deed of conveyance, succeed to and become fully vested with identically the same title and estate in and to the Property hereby conveyed and with all the rights, powers, trusts and duties of the predecessor in the trust hereunder, with the like effect as if originally named as trustee or as one of the trustees.

8. SUBORDINATION. This Deed of Trust shall be subordinate to the lien of any purchase money deed of trust recorded contemporaneously herewith and any deed of trust held by the California Housing Finance Agency.

9. MISCELLANEOUS PROVISIONS

9.1 Successors and Assigns. The covenants and agreements contained in this Deed or Trust shall bind, and the benefit and advantages here under shall inure to, the respective heirs, executors, administrators, successors and assigns of the parties; provided however, nothing in this Section is intended to or shall modify any restrictions on assignment set forth herein or in the Note or Loan Agreement. As used herein, the words “the Beneficiary” means the present Beneficiary or any future owner or holder, including a pledgee of the indebtedness secured hereby.

9 .2 Headings; Gender, Number. The captions and headings used in this Deed of Trust are inserted only for convenience of reference and in no way define, limit, or describe the scope or intent of this Deed of Trust, or of any particular provision thereof, or the proper construction thereof. Wherever used, the singular number shall include the plural, and the plural the singular, and the use of any gender shall be applicable to all genders.

9 .3 A pprovals in Writing. Except as otherwise specifically provided herein, whenever any approval, notice, direction, consent, request or other action by the Beneficiary is required or permitted under this Deed of Trust, such action shall be in writing.

9.4 Joint and Several Obligations. If more than one person has executed this Deed of Trust as Trustor, the obligations of all such persons hereunder shall be joint and several.

Attachment 2
291
EXHIBIT 5. DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING, AND SECURITY

AGREEMENT
Exhibit 5_FTHMR_Deed-of-Trust-2024 -11- Rev 8|2024

9.5 Severability. If any provision of this Deed of Trust shall be held by a court of competent jurisdiction to 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.

9.6 Indemnification. Trustor agrees to indemnify, defend (with counsel approved by Beneficiary) and hold the Beneficiary, its elected and appointed officers, officials, agents and employees (“Indemnitees”) harmless from and against any and all losses, damages, claims, actions, demands, judgments, penalties , costs and expenses (including reasonable attorneys’ fees) and liabilities (all of the foregoing, collectively “Claims”) which the Indemnitees may sustain or suffer directly or indirectly as a result of or arising in connection with (i) Trustor’s failure to perform any obligations as and when required by the Note, the Loan Agreement, or this Deed of Trust, (ii) the failure at any time of any of Trustor’s representations and warranties made in connection with the Loan to be true and correct, or (iii) any action or omission by Indemnitees in connection with this Deed of Trust, except to the extent any such C laim arises due to the gross negligence or willful misconduct of Indemnitees.

9.7 Notices. Except for any notice required under applicable law to be given in another manner (a) any notice to Trustor provided for in this Deed of Trust shall be given by mailing such notice by certified mail directed to the Property Address or any other address Trustor designates by notice to Beneficiary as provided herein; and, (b) any notice to Beneficiary shall be given by certified mail, return receipt requested, to Beneficiary’s mailing address stated herein or to such other address as Beneficiary may designate by notice to Trustor as provided herein. Any notice provided for in this Deed of Trust shall deem to have been given to Trustor or Beneficiary when given in the manner designated herein.

Beneficiary: City of Dublin
100 Civic Plaza
Dublin, CA 94568
Attn: City Treasurer

Trustor: Borrower
Mailing Address
Dublin, CA 94568

9.8 Beneficiary Statement . Beneficiary may collect a fee for furnishing the beneficiary statement in an amount not to exceed the amount as provided by Section 2943 of the Civil Code of California.

9.9 Governing Law. This Deed of Trust shall be governed by the laws of the State of California.

Attachment 2
292
EXHIBIT 5. DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING, AND SECURITY

AGREEMENT
Exhibit 5_FTHMR_Deed-of-Trust-2024 -12- Rev 8|2024
IN WITNESS WHEREOF, Trustor has executed this Deed of Trust as of the date first written above.

TRUSTOR

Borrower

SIGNATURES MUST BE NOTARIZED.

Attachment 2
293
EXHIBIT 5. DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING, AND SECURITY

AGREEMENT
Exhibit 5_FTHMR_Deed-of-Trust-2024 -13- Rev 8|2024

NOTARY ACKNOWLEDGMENT
[Insert Here]
Attachment 2
294
EXHIBIT 5. DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING, AND SECURITY

AGREEMENT
Exhibit 5_FTHMR_Deed-of-Trust-2024 -14- Rev 8|2024
Exhibit A: LEGAL DESCRIPTION
[Insert here]

Attachment 2
295
EXHIBIT 6. SECURED PROMISSORY NOTE

Exhibit 6_FTHMR_Promissory_Note-2024 -1- Rev 8|2024

NOTICE TO BORROWER: THIS DOCUMENT CONTAINS PROVISIONS RESTRICTING USE OF THE

PROPERTY, REFINANCING, AND ASSUMPTIONS

SECURED PROMISSORY NOTE

City of Dublin First-Time Homebuyer Program
(Market Rate Units)

Loan No.: ## Borrower
Property Address
Dublin, CA 94568

Loan Amount: $00,000 Date: Date
Together with Excess Sale Proceeds
and Equity Share

FOR VALUE RECEIVED, the undersigned, Borrower(s) (collectively, “Borrower”) promises to pay to THE CITY OF DUBLIN, a municipal corporation (“Lender”) at 100 Civic Plaza, Dublin, California 94568, or such other place as Lender may from time to time designate by written notice to Borrower, in lawful money of the United States, the principal sum of amount dollars ($00,000) together with the greater of Interest or Equity Share, each as defined below. This Secured Promissory Note (this “Note”) is secured by that certain Deed of Trust, Assignment of Rents, Fixture Filing and Security Agreement (the “Deed of Trust”) dated as of the date hereof, executed by Borrower and recorded against the Property (defined below) in the Offi cial Records of Alameda County. In addition to securing Borrower’s obligation to repay the sums payable pursuant to this N ote, the Deed of Trust secures Borrower’s obligations set forth in that certain Loan and Equity Share Agreement (“Loan Agreement”) dated as of the date hereof, executed by Borrower and Lender, and recorded against the Property.

1. Purpose of Loan. Borrower is purchasing the residential real property located at Property Address in the City of Dublin, Alameda County, California (the “Property”) as more particularly described in Exhibit A of the Deed of Trust. Lender has provided a loan in the principal amount of this Note (the “Loan”) to Borrower pursuant to Lender’s First -Time Homebuyer Program. This Note evidences Borrower’s obligation to pay to Lender: (i) the principal sum of th is Note, and (ii) t he greater of Interest or the Equity Share determined pursuant to Section 3 of this Note.

2. Loan Repayment. The entire outstanding principal balance of this Note, together with the greater of Interest or Equity Share, and all other sums due hereunder, shall be due and payable in full in one lump sum upon the date (the “Due Date”) which is the earliest to occur of: (i) the thirtieth (30th) anniversary of the date of this Note, (ii) the sale, transfer, lease or encumbrance of all or any interest in the Property ( other than as permitted pursuant to the Deed of Trust and the Loan Agreement), (iii) the refinancing or repayment in full of any senior mortgage secured by the Property, or (iv) the occurrence of an Event of Default.

Attachment 2
296
EXHIBIT 6. SECURED PROMISSORY NOTE

Exhibit 6_FTHMR_Promissory_Note-2024 -2- Rev 8|2024

3. Equity Share and Interest. On the Due Date (as defined in Section 2), in addition to repaying the principal amount of this Note, Borrower shall pay the greater of: (i) simple interest accruing on the outstanding principal balance of the Loan at the rate of three percent (3%) per year commencing upon the date of this Note until paid in full (“Interest”); or (ii) an equity share calculated in accordance with the formula set forth below (the “Equity Share”). Interest for any partial year during the term of this Note shall be c alculated on the basis of a 365- day year. The Equity Share shall be considered contingent interest on the principal due hereunder.

The Equity Share shall be equal to the sum resulting from dividing the original principal amount of the Loan by the Original Purchase Price and then multiplying that percentage by the Appreciation Amount.

“Original Purchase Price ” means the purchase price paid by Borrower to purchase the Property. The parties agree that the Original Purchase Price equals the sum of amount dollars ($000,000).

“Fair Market Value” means the greater of: (a) the contract sale price or the actual price paid for the Property (whichever is greater) by a bona fide third party purchaser in an arms length transaction, or (b) the fair market value of the Property as determined by an appraiser certified and licensed by the State of California, selected by Borrower and approved by Lender.

“Appreciation Amount” means the amount calculated by subtracting the Original Purchase Price and the Cost of Eligible Capital Improvements (as defined in Section 5.1 of the Loan Agreement) from the Fair Market Value.

As an illustration, if the Original Purchase Price was $400,000 and the principal amount of the Loan was $40,000, then the percentage of appreciation that the Borrower would owe would be $400,000 divided by $40,000 = 10%. If upon resale the Fair Market Value of the Property is $600,000 and the Cost of Eligible Capital Improvements is $25,000, then the Appreciation Amount would be $600,000 minus $25,000 minus $400,000 = $175,000. The Equity Share payable by the Borrower would 10% of $175,000 = $17,500.

4. Due on Sale; Restrictions on Refinancing and Assumption. This Note is payable in full upon sale or refinancing of the Property, and may not be assumed except under the limited circumstances set forth in Section 6.9 of the Deed of Trust.

5. Events of Default; Acceleration of Payment. An Event of Default permitting Lender to declare all sums payable hereunder immediately due and payable and to exercise all remedies available to Lender pursuant to the Loan Agreement and the Deed of Trust shall arise upon the occurrence of any of the following:

(a) Borrower fails to use the Property as Borrower’s Principal Residence in accordance with the Loan Agreement;

(b) The sale, conveyance, or transfer of the Property (including a sale under a deed of trust in the event of foreclosure) if following such sale, conveyance or transfer, Borrower’s remaining ownership interest in the Property is less than fifty percent (50%) except as permitted pursuant to Section 6.9 of the Deed of Trust;

Attachment 2
297
EXHIBIT 6. SECURED PROMISSORY NOTE

Exhibit 6_FTHMR_Promissory_Note-2024 -3- Rev 8|2024

(c) An event of default arises under any other loan secured by the Property and such default remains uncured following the expiration of any applicable cure period;

(d) Borrower refinances the Property in violation of the Loan Agreement;

(e) Borrower fails to pay when due any sum payable pursuant to this Note and such failure remains uncured fifteen (15) days beyond the due date for such payment; or

(f) An Event of Default arises under the Deed of Trust or the Loan Agreement and remains uncured beyond any applicable cure period.

6. Default Rate of Interest. Upon the occurrence of an Event of Default, the interest rate payable hereunder shall increase to the rate of ten percent (10%) per annum commencing upon the date of such Event of Default.

7. Application of Payments . All payments received on account of this Note shall be applied first to accrued Interest or the Equity Share, as applicable, and the remainder shall be applied to the reduction of principal.

8. Attorney’s Fees. Borrower agrees to pay all costs and expenses, including reasonable attorney’s fees, which Lender may incur in the collection or enforcement of this Note, whether or not suit is filed.

9. No Offset; Borrower’s Waivers . Borrower hereby waives any rights of offset it now has or may hereafter have against Lender, its successors and assigns, and agrees to make the payments called for hereunder in accordance with the terms of this Note. Borrower hereby waives diligence, presentment, protest, and demand, and notice of protest, notice of dishonor and notice of nonpayment of this Note, and expressly waives any rights to be released by reason of any extension of time or change in terms of payment, or change, alteration or release of any security given for the payments hereof, and expressly waives the right to plead any and all statutes of limitation as a defense to any demand on this Note.

10. Notices. Except as may be otherwise specified herein, any approval, notice, direction, consent, request or other action by the Lender shall be in writing and shall be communicated to the Borrower at the address of the Property, or at such other place or places as the Borrower shall designate to the Lender in writing, from time to time, for the receipt of communications from the Lender. Mailed notices shall be deemed delivered and received five (5) working days after deposit in the United States mail in accordance with this provision.

Lender: City of Dublin
100 Civic Plaza
Dublin, CA 94568
Attn: City Treasurer

Borrower: Borrower
Mailing Address
Dublin, CA 94568

Attachment 2
298
EXHIBIT 6. SECURED PROMISSORY NOTE

Exhibit 6_FTHMR_Promissory_Note-2024 -4- Rev 8|2024

11. Prepayment. Borrower may prepay this Note in full at any time without premium or penalty, so long as Borrower pays the entire outstanding principal balance together with the greater of accrued Interest or the Equity Share as determined pursuant to Section 3 and all other sums payable hereunder.

12. Governing Law. This Note shall be construed in accordance with and be governed by the laws of the State of California.

13. Severability. If any provision of this Note shall be held by a court of competent jurisdiction to 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.

14. No Waiver by Lender; Remedies Cumulative. No waiver of any breach, default or failure of condition under the Note, the Loan Agreement, or the Deed of Trust shall be implied from Lender’s failure or delay in declaring a default or exercising any of Lender’s rights or remedies with respect to such breach, default or failure, or from any previous waiver of any similar or unrelated breach, default or failure, nor shall acceptance by Lender of any payment hereunder constitute a waiver of Lender’s right to require prompt payment of any remaining amounts owed. Without limiting the generality of the foregoing, Lender’s failure or delay in declaring any amount due hereunder shall not constitute a waiver of Lender’s right to declare such sum due for the same or any subsequent event that triggers Borrower’s payment obligations hereunder. Any waiver of any term or provision of the Note, the Loan Agreement, or the Deed of Trust, or any of the obligations secured thereby must be made in writing and shall be limited to the express written terms of such waiver. The r ights and remedies of the parties hereunder are cumulative, and the exercise or failure to exercise one or more of such rights or remedies by either party shall not preclude the exercise by it, at the same time or different times, of any right or remedy for the same default or any other default.

15. Joint and Several Obligations. If this Note is executed by more than one person as Borrower, the obligations of each shall be joint and several.

16. Assignment by Lender; Successors and Assigns . Lender may assign its rights to receive the proceeds under this Note to any person or entity , and upon notice to Borrower of such assignment, all payments shall be made to the assignee. The promises and agreements herein contained shall bind and inure to the benefit of, as applicable, the respective heirs, executors, administrators, successors and assigns of the parties; provided however, Borrower may not assign this Note without Lender’s written consent except in accordance with the Loan Agreement and the Deed of Trust.

17. Entire Agreement; Amendments in Writing. This Note, together with the Loan Agreement and the Deed of Trust sets forth the entire understanding and agreement of Borrower and Lender with respect to the subject matter hereof. Any amendment to this Note must be in writing signed by both Lender and Borrower.

18. Nonliability for Negligence, Loss or Damage. Borrower acknowledges and agrees that the relationship between Borrower and Lender is solely that of borrower and lender, and that Lender neither undertakes nor assumes any responsibility for or duty to Borrower to select, review, inspect, supervise, pass judgment on or inform Borrower of the quality, adequacy or suitability of the Property or any other matter.

Lender owes no duty of care to protect Borrower against negligent, faulty, inadequate or defective building or construction, or any condition of the Property, and Borrower agrees that neither Borrower nor any of Borrower’s heirs, successors or assigns shall ever claim, have or assert any right or action against Lender for any loss, damage or other matter arising out of or resulting from any condition of the Property.

Attachment 2
299
EXHIBIT 6. SECURED PROMISSORY NOTE

Exhibit 6_FTHMR_Promissory_Note-2024 -5- Rev 8|2024

Executed as of the date first written above.

BORROWER

Borrower

Attachment 2
300

CITY OF DUBLIN
First Time Homebuyer Loan Program Guidelines
September 32, 20214
Attachment 3
301

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302

TABLE OF CONTENTS
First Time Homebuyer Loan Program Guidelines September 3, 2024 i
1 INTRODUCTION 1
2 DEFINITION OF TERMS 3
3 LOAN TERMS 7

3.1 Overview of Loan Terms 7

3.2 Financing Requirements 8

3.2.1 Acceptable Primary Loan Products 8

3.2.2 Prohibited Primary Loan Products and Unacceptable Mortgage Features 8

3.2.3 Down Payment 8

3.3 Property Inspection Reports 9

3.4 Recorded Loan Documents 9

3.4.1 Loan Documents for Below Market Rate Homes 9

3.4.2 Loan Documents for Market Rate Homes 9

3.5 Equity Share 9

3.5.1 Below Market Rate Units 9

3.5.2 Market Rate Units 9
4 HOUSEHOLD QUALIFICATIONS 11

4.1 Household Qualifications 11

4.2 Description of Qualification Requirements 12

4.2.1 Household Income 12

4.2.2 Credit Score 15

4.2.3 Homebuyer Education Program 15

4.2.4 Debt to Income Ratio 15

4.2.5 Preference Points 15
5 PROCEDURES 19

5.1 Loan Application, Approval, and Funding Procedures 19

5.2 Pre-Qualification 20
303

TABLE OF CONTENTS
September 3, 2024 First Time Homebuyer Loan Program Guidelines ii

5.3 BMR Unit Refinancing 20

5.4 Loan Payoffs 21
6 EXCEPTIONS 23

EXHIBITS
Exhibit 1 Sample Loan, Occupancy, Refinancing, and Resale Restriction Agreement with Option to Purchase (for loans on Below Market Rate homes)
Exhibit 2 Sample Deed of Trust, Assignment of Rents, Fixture Filing, and Security Agreement (for loans on Below Market Rate homes)
Exhibit 3 Sample Secured Promissory Note (for loans on Below Market Rate homes) Exhibit 4 Sample Loan and Equity Share Agreement (for loans on Market Rate homes) Exhibit 5 Sample Deed of Trust, Assignment of Rents, Fixture Filing and Security Agreement (for loans on Market Rate homes)
Exhibit 6 Sample Secured Promissory Note (for loans on Market Rate homes)

LIST OF TABLES
Table 1. Loan Terms and Requirements 7
Table 2. Applicant Household Qualifications 11
Table 3. Program Income Limits by Household Size (2014) 12 Table 4. Annual Income Calculations by Pay Frequency 14 Table 5. Preference Points 16

LIST OF FIGURES
Figure 1. Loan Application Process 17
Figure 2. Loan Payoff Process 19
Figure 3. Exception Request Procedure 21

LIST OF EXAMPLES
Example 1. Equity Share Calculation 10
Example 2. Determining Income with Assets 15
304
First Time Homebuyer Loan Program Guidelines September 3, 2024 1 1 INTRODUCTION
The City of Dublin (City) First Time Homebuyer Loan Program (Program, FTHLP) provides financial assistance, in the form of a deferred loan, to income-qualified first time buyers who wish to buy a home in the City.

These FTHLP Guidelines (Guidelines) describe loan terms, eligibility requirements, and procedures. Users of these Guidelines are encouraged to seek their own legal counsel to aid in understanding the requirements of the FTHLP. For any general questions regarding the Program or these Guidelines, users may call the City’s Housing Division at (925) 833-6610.

The effective date of these Guidelines is SeptemberSeptember 32, 20214. The City will review and, to the extent necessary, update these Guidelines annually. The City Manager may approve minor revisions, interpretations, or clarifications to these Guidelines. Any such revision, interpretation, or clarification shall become effective when posted on the City’s website.

Non-Discrimination
All persons have the right to file a written application for a mortgage loan. An eligible Borrower is a person (or persons) who is obligated to the repayment of a loan by the signing of the note. Loans to corporations, partnerships, or syndications are not acceptable.

We doThe City does not discriminate in granting or denying loans or in setting terms and conditions of a loan, with regard to race, color, age, religion, gender, marital status, sexual orientation, national origin, or ancestry of the Applicant; nor with regard to the racial or ethnic composition of the neighborhood, geographic areas surrounding the property or with regard to income derived from any public assistance program. 305

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First Time Homebuyer Loan Program Guidelines September 3, 2024 3 2 DEFINITION OF TERMS
As used in these Guidelines, the following terms shall be defined as follows:

Administration Fees:
 A $1,500 fee charged by the City to the loan recipientThe City Council shall, by resolution, establish a fee charged by the City to the loan recipient for the for the underwriting, processing, and serving of the approved loan..
 A reimbursement fee charged by the City to the Applicant at the time of application for a credit report.

The fee amount varies based on actual cost.
 Fees may be adjusted from time to time by the City.

Fees may be adjusted from time to time by the City.

Applicant: A household that has submitted an application for a loan under the City’s First Time Homebuyer Loan Program.

Area Median Income (AMI): The Area Median Income adjusted for household size as published annually for Alameda County by the California Department of Housing and Community Development (HCD).

Below Market Rate (BMR) Units: A Below Market Rate or BMR Unit is a unit that is reserved for sale to Llow- or Moderate-Income households. BMR Units have restrictions recorded against them to ensure they remain affordable for a set period of time. For additional information regarding BMR Units in the City, refer to the Guidelines to the Inclusionary Zoning Regulations Ordinance.

Borrower: A household that has been approved for or has received an FTHLP loan.

CalHFA: The California Housing Finance Agency.

City: The City of Dublin.

City Council: The legislative body of the City of Dublin.

City Staff: An employee or designee of the City of Dublin responsible for actions related to the Program or these Guidelines.

First Time Homebuyer: A person who has not owned any interest in real property during the three-year period prior to the date of the household’s loan application, including without limitation, real property in which a household member’s name appears on the title regardless of whether the member’s interest in such property results in a financial gain, such property is located in another state or country, or the member has occupied such property as his or her primary residence. If any person has had his or her name on the title of a property, but the property was sold more than three years ago from the date of application, the person is considered a First Time Homebuyer.

Gross Household Income: All income, from whatever source derived, of all adult household members (18 years of age and older), whether or not such income is exempt from federal income tax. Refer to Section 4.2.1 for a list of income sources and exceptions.

Guidelines: These First Time Homebuyer Loan Program Guidelines. 307
2 DEFINITION OF TERMS
September 3, 2024 First Time Homebuyer Loan Program Guidelines 4 HCD: The California Department of Housing and Community Development.

HOA: Homeowners Association.

Homebuyer Class: A United States Department of Housing and Urban DevelopmentHUD, Fannie Mae, or City- approved course designed to provide basic education for First Time Homebuyers. Refer to the City’s website (https://www.dublin.ca.gov/housing/education() for organizations that may offer this course. The date on the completion certificate for the class must be within six months of the date of application for a Loan.

Housing Expenses: Principal, interest, private mortgage insurance, taxes, insurances, and HOA dues.

HUD: The United States Department of Housing and Urban Development.

Immediate Family Member: A mother, father, brother, sister, child, grandparent, or grandchild.

Legal Resident: A citizen or other national of the United States or a qualified alien as defined by the Federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996.

Loan Committee: The Loan Committee is appointed from time to time by the City Manager and generally consists of senior staff from the City’s Community Development and Finance Departments as well as a representative from the City Manager’s office. The Loan Committee reviews loan applications and approves, conditionally approves, or denies loan applications. Decisions require a two-thirds vote.

Low Income: Total Household Income that is 51% to 80% of Area Median Income (AMI), adjusted for actual household size.

Maximum Income: The Maximum Income for the Moderate Income category determined periodically by HCD based on AMI. See Section 4.2.1 of these Guidelines for Maximum Incomes.

Moderate Income: Total Household Income that is 81% to 120% of AMI, adjusted for actual household size.

Preference Points: Points assigned to persons employed in the City of Dublin, public service employees working for a public agency within the City of Dublin, Dublin residents, Seniors (62+), Veterans, persons who are permanently disabled (with written verification from a physician or show receipt of Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI)), persons who are Immediate Family Members of a Dublin resident, and persons who are required to relocate from a Dublin residence due to demolition of the residence or conversion of the residence from a rental to an ownership unit, and persons who are buying a foreclosed or Real Estate Owned (REO) home. Persons with Preference Points are given priority over other Qualified Households in the disbursement of loan funds.

Principal Residence: The place where a person resides on a substantially full-time basis during not less than 10 months per year. Children attending college and not living at home as their Principal Residence may not be counted as a household member.

Program: Activities related to the City of Dublin First Time Homebuyer Loan Program.

Qualified Household: A “Qualified Household” means an Applicant household that satisfies the requirements listed in Section 4 of these Guidelines.

Senior: A person 62 years of age or older for the purpose of qualifying for Preference Points. 308
2 DEFINITION OF TERMS
First Time Homebuyer Loan Program Guidelines September 3, 2024 5 Total Household Income: All Gross Household Income and assets received (as calculated pursuant to Section

4.2.1).

Veteran: A person who served in the active military, naval, or air service and who was discharged or released therefrom under conditions other than dishonorable, for the purpose of qualifying for Preference Points. 309

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First Time Homebuyer Loan Program Guidelines September 3, 2024 7 3 LOAN TERMS

3.1 Overview of Loan Terms
The terms, requirements, and conditions for loans approved through the FTHLP are outlined in Table 1 and described further below.

Table 1. Loan Terms and Requirements
Term or Requirement Below Market Rate Homes Market Rate Homes Loan Amount Up to 2015% of the purchase price, with a
maximum of $10040,000.

Up to 210% of the home purchase price,
with a maximum of $10040,000.

Interest Rate 3 .5%, simple interest
Loan Term 30 year, deferred payment
Repayment Repayment of principal and interest is due
upon the sale of the property, upon the
formal filing and recording of a notice of
default, or the expiration of the loan term
(whichever is earliest).

Repayment of principal and interest or
equity share is due upon the sale of the
property, payoff, or refinance of the first
mortgage, upon the formal filing and
recording of a notice of default, or the
expiration of the loan term (whichever is
earliest).

Equity Share Loans on BMR homes are subject to an
equity share provision only upon the first
sale of the home following the expiration of
the restricted affordability period.

Upon the events described in “Repayment”
above, Borrowers of loans for market rate
properties are subject to a payment of
either accrued interest or equity share,
whichever is greater. See Section 3.5 for a
description of equity share.

Prepayment Borrower(s) may prepay the Loan at any time without penalty (provided that the payment covers the principal as well as the accrued interest or equity share).

Acceptable Primary
Mortgages
See Section 3.2.

Position on Title/Layered
Financing
The City must be in second position on title, behind only a primary mortgage, except when the borrower is also using other similar County, State, or governmental programs, such as the Alameda County AC Boost, CalHFA, etc., that require a second position on title, at which time the City may subordinate in a third or fourth position on title. . Borrowers may utilize other assistance loans other than those listed above, but they must be subordinate to the City’s FTHLP loan.

Co-Signatories (not
allowed)
The loan shall contain no co-signatories. Only the approved Borrower’s name(s) may be on the deed.

Fees Applicants are subject to the following fees:

FFee for a credit check, due at the time of application (reimbursement, based on actual cost).

Fee established by City Council resolution for
$1,500 fee for loan underwriting, processing, and servicing, due upon close of escrow. 311
3 LOAN TERMS
September 3, 2024 First Time Homebuyer Loan Program Guidelines 8 Use of Loan Funds Loan funds may be used for down payment assistance and to pay for non-recurring closing costs associated with the home purchase. Loans may not be used for repairs, room additions, or non- real property purchases.

Property Eligibility Properties must be located in the City of Dublin and may be a single-family home, condominium, or a manufactured home (subject to secondary market eligibility requirements).

Inspection Reports The Applicant must provide home and pest inspection reports (see Section 3.3).

3.2 Financing Requirements
All Applicants must be able to secure a primary home loan through a lending institution. Applicants may use a lender of their choice, provided that the lender adheres to the City’s Guidelines for acceptable loan products.

Applicants must provide a pre-approval letter, truth in lending statement, and good faith estimate from their chosen lender at the time of application for a FTHLP loan.

3.2.1 Acceptable Primary Loan Products
The City reserves the right to deny a loan or reject loan products for primary loans if the City believes in its sole discretion that there is a stronger likelihood that the loan product would potentially result in loss of loan funds due to the purchasers’ inability to comply with the terms of the loan.

Following is a nonexclusive list of the loan products that are generally acceptable to the City. The list is not intended to be exhaustive, and other loan products may be evaluated upon request.

Acceptable Primary Mortgage Loan Products
 Fixed mortgages up to 3040 years
 Maximum 100% combined loan to value

3.2.2 Prohibited Primary Loan Products and Unacceptable Mortgage Features The following loan products and mortgage features are generally unacceptable to the City:
 Interest-only loans
 Negative amortizing loans
 Adjustable rate loans
 Balloon payment loans
 Lines of credit that exceed the resale price of the unit  Stated income loans
 Excessive points and fees (more than what is typical of the market at the time)

3.2.3 Down Payment
The Borrower is required to make a minimum down payment of at least 3.5% of the sales price. Funds must be placed into escrow prior to the close of escrow and must come from acceptable sources and be verified and properly documented per Federal Housing Administration guidelines. 312
3 LOAN TERMS
First Time Homebuyer Loan Program Guidelines September 3, 2024 9 3.3 Property Inspection Reports
The Applicant must obtain and provide pest inspection and home inspection reports for the property from licensed professionals. The pest inspection report must confirm that the structure is sound and any noted pest infestations must be resolved as recommended in the report. The home inspection report must cover all major systems, including, but not limited to, electrical, plumbing, and drainage, as well as the foundation, paint, and appliances.

Reports should be provided to the City as early as possible during the escrow period to ensure funding and a timely close of escrow.

3.4 Recorded Loan Documents
The City will prepare and the Borrower will sign a set of documents that describe agreed-upon loan terms and ongoing Program requirements. These documents will be executed at the close of escrow and recorded on the property’s title. City Staff will discuss the basic provisions of these documents with the Borrower(s) at the in- person consultation prior to the close of escrow; however, Borrowers should review these documents thoroughly prior to signing.

3.4.1 Loan Documents for Below Market Rate Homes
Sample loan documents for FTHLP loans on BMR Units are provided in Exhibits 1, 2, and 3. Documents include the Loan, Occupancy, Refinancing, and Resale Restriction Agreement with Option to Purchase (Exhibit 1), Deed of Trust, Assignment of Rents, Fixture Filing and Security Agreement (Exhibit 2), and Secured Promissory Note (Exhibit 3). BMR Units are also subject to the provisions described in the Guidelines to the Inclusionary Zoning Regulations Ordinance.

3.4.2 Loan Documents for Market Rate Homes
Sample loan documents for FTHLP loans on market rate units are provided in Exhibits 4, 5, and 6. Documents include the Loan and Equity Share Agreement (Exhibit 4), Deed of Trust, Assignment of Rents, Fixture Filing and Security Agreement (Exhibit 5), and Secured Promissory Note (Exhibit 6).

3.5 Equity Share

3.5.1 Below Market Rate Units
BMR Units are not subject to an equity share provision upon resale or prepayment or in the occurrence of default; however, BMR Units must pay an equity share to the City upon the first sale of the property following the expiration of the restricted resale period. This requirement is described in the Guidelines to the Inclusionary Zoning Regulations Ordinance and in the Loan, Occupancy, Refinancing, and Resale Restriction Agreement with Option to Purchase (Exhibit 1).

3.5.2 Market Rate Units
Upon the sale of the property, repayment of the loan (due to a refinance or as an optional prepayment), or the occurrence of any default event, the Borrower must pay the City the loan principal as well as the greater of the accrued simple interest or an equity share. The equity share is based on the amount of the FTHLP loan in proportion to the value of the property and the amount by which the property has increased in value, based on an appraisal or resale purchase contract. The calculation is described in detail in the Loan and Equity Share Agreement in Exhibit 4 and demonstrated in a sample calculation in Example 1. 313
3 LOAN TERMS
September 3, 2024 First Time Homebuyer Loan Program Guidelines 10 Example 1. Equity Share Calculation
The Borrower purchased a property for $ 7400,000 and the City provided an FTHLP loan of $ 740,000. The loan amount ($740,000) is equivalent to 10% of the sale price.

The Borrower sells the property 20 years later for $ 1,1600,000. The property has appreciated by $ 4200,000 ($1,1600,000 - $7400,000 = $4200,000).

The City portion of the increased value is 10%, which equals $ 420,000 ($4200,000 X 10% = $420,000).

If the $420,000 City share is greater than the accrued simple interest on the loan, the Borrower would owe the City a total of $1160,000 ($740,000 in principal and $420,000 in equity share). 314

First Time Homebuyer Loan Program Guidelines September 3, 2024 11 4 HOUSEHOLD QUALIFICATIONS

4.1 Household Qualifications
A household must meet the requirements stated in Table 2 to qualify for a Loan. Section 4.2 provides additional detail on certain requirements.

Table 2. Applicant Household Qualifications
Qualification Requirement Description
Income The household’s Total Household Income must not exceed the income limit set forth in Section 4.2.1.

Assets The household may have no more than $250,000 in total assets, excluding pensions and federally approved pre-tax savings accounts.

First-Time Homebuyer No member of the household may have owned any interest in real property during the three-year period prior to the household’s BMR Unit application date.

Owner Occupancy The household will occupy the unit as its Principal Residence within 630 days of the close of escrow on the unit.

Homebuyer Education All title holders of the property must take a HUD or Fannie Mae-approved or City-approved First Time Homebuyer class and receive a certificate of completion. The certificate of completion must be dated within six months one year of the date of application.

Credit All Applicants have a minimum FICO credit score of 620 (see Section 4.2.2) and must not have filed for bankruptcy in the last three years. Persons with records of deeds-in-lieu of foreclosure or judicial or non-judicial foreclosure are subject to a seven-year waiting period before they may be considered for an FTHLP loan.

Residency/Citizenship All household members must be either a citizen or national of the United States or a qualified alien defined by the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996.

Loan Preapproval Homebuyers must be preapproved for a home loan that conforms to the requirements established in Section 3.2.

Debt to Income Ratio Homebuyers’ proposed debt (based on current liabilities and proposed housing payment) may not exceed 45% of the household’s monthly income (see Section 4.2.4).

Applicant households may request exceptions to qualification requirements. Procedures for exception requests are described in Section 6.
315
4 HOUSEHOLD QUALIFICATIONS
September 3, 2024 First Time Homebuyer Loan Program Guidelines 12 4.2 Description of Qualification Requirements

4.2.1 Household Income

4.2.1.1 Maximum Total Household Income
To be eligible for a FTHLP loan, the Applicant’s Total Household Income must not exceed the current Moderate- Income limit. Total Household Income means the household’s Gross Household Income (see Section 4.2.1.2) plus assets calculated pursuant to Section 4.2.1.4. Maximum Income is determined annually by HCD based on Area Median Income. Table 3 shows the Maximum Income limitss for Alameda County for 20214.

Table 3. Program Income Limits by Household Size (20 214) Household Size Income Limit
1 person $130,80078,550
2 persons $149,50089,750
3 persons $168,150101,000
4 persons $186,850112,200
5 persons $201,800121,200
6 persons $216,750130,150
7 persons $231,700139,150
8 persons $246,650148,100
Source: HCD State Income Limits for Moderate-Income Households, 20214

4.2.1.2 Gross Household Income
Gross Household Income means all income from all adult household members (18 years of age and older) derived from all sources as provided in the Internal Revenue Code (Title 26, Subtitle A, Chapter 1, Subchapter B, Part I, Section 61), whether or not such income is exempt from federal income tax. Such income includes, but is not limited to, the following:
 Compensation received from an employer. Compensation includes, but is not limited to, salary, overtime pay, and other pay
 Other pay can include, but is not limited to, compensation for special working conditions or one-time pay- out of unused vacation and sick leave
 Alimony, spousal, and child support
 Cash
 Pensions, if at an age where pension is being received as income  Public benefits including, but not limited to, CalWorks, Social Security Income, and disability income  All interest, dividends, and royalties
 Income derived from private businesses
 Rental income
 Income from pensions
316
4 HOUSEHOLD QUALIFICATIONS
First Time Homebuyer Loan Program Guidelines September 3, 2024 13  Compensation for services rendered including fees, fringe benefits, commissions, tips, and bonuses  Stipend received for participation in a mentor, learning, or education opportunity  Gains from dealings in private and/or commercial property  Gambling winnings
 Annuities, life insurance, and endowment contracts
 Income from discharge of indebtedness
 Gross partnership contributions or distributions
 Income from an interest in an estate or trust
For purposes of determining Gross Household Income, each person 18 years of age or older must present all of the following:
 A complete set of federal and state income tax returns for the past three years, including all schedules (signed and dated) and W-2 forms (in the case where taxes have not been filed for any of the past three years, a letter of verification of non-filing from the Internal Revenue Service is required).  Four most recent and consecutive pay stubs.
 Three recent and consecutive statements for all financial accounts, including, but not limited to, savings accounts, checking accounts, retirement accounts, 401(kK) accounts, stock accounts, and another other accounts held in the Applicant(s) name(s), whether held individually or together.

If a household member is self-employed, in addition to the information above, the member must submit profit and loss statements for the past three years (if applicable), and a current profit and loss statement for the year.

Exceptions:

1. Gross Household Income does not include income earned by a household member who is between the ages of 18 and 26 and meets both of the following criteria:
 Is claimed as a dependent of a household member on such member’s federal income taxes.  Is a full-time student (12+ units; school transcript must be provided).

2. Gross Household Income does not include payments to a household member from a governmental fund if all of the following requirements are satisfied:
 The payments are based on the recipient’s or the recipient’s family’s financial need.  The payments do not represent compensation for services rendered.  The payments are part of a governmental housing subsidy program including, but not limited to, Housing Choice Voucher (Section 8) federal housing assistance payments.

4.2.1.3 Income Calculation
a. Wage and Salary. If an Applicant is a full-time employee (usually 30 to 40 hours per week) or an employee with consistent regular hours or income, or income with overtime or adjustments as a regular part of their job, one of the formulas listed in Table 4 will be used to determine the Applicant’s salary. Bonuses, commissions, and limited overtime may be calculated into the annual income calculation. In the case of unclear income or income that is somewhat difficult to calculate, please contact the City. The City will make the final determination as to which income calculation formula to use. 317
4 HOUSEHOLD QUALIFICATIONS
September 3, 2024 First Time Homebuyer Loan Program Guidelines 14 Table 4. Annual Income Calculations by Pay Frequency Pay Frequency Annual Income Calculation
Monthly Monthly income amount x 12
Twice Monthly Twice monthly income amount x 24
Biweekly Biweekly income amount x 26
Weekly Weekly income amount x 52
Hourly Hourly income x 40 (or whatever normal hours per week may be) x 52 b. Variable Income. For Applicants who are part-time employees or employees with variable hours every pay period (or variable hours less than 40 hours per week), inconsistent income or hours, frequent overtime, bonuses and commissions, etc., their annual salary will be calculated using year-to-date income, plus the previous year’s income (from same income source or employer), divided by the number of months reviewed (UP TO BUT NOT EXCEEDING 12 MONTHS) times 12 to arrive at their annual income. If there is no previous year income from the same employer, or the job was started mid-year, the current income year to date using the calculation explained in (b) above will be used. If an Applicant works consistently 40 hours per week and has occasional or regular overtime, the calculation listed in (b) above will be used to calculate income.
c. Inconsistent or Temporary Change in Income Due to a Temporary Circumstance. If an Applicant has a temporary situation (seven months or less) that makes income calculation difficult, a verification of employment may be used to calculate the Applicant’s income based on a normal annual time period. Or, the income may be calculated based on the person’s hourly rate times their normal working hours (as shown in item (b) above).
d. Self-Employed or Non-Corporation. A self-employed Applicant is also considered to have variable income.

Gross annual income calculations will be based on the previous two years’ net income shown on Schedule C of the federal income tax returns, plus net income before taxes from the Applicant’s signed, year-to-date Profit and Loss Statement, divided by the appropriate number of months (NOT TO EXCEED 12 MONTHS) times 12 to arrive at the annual income.

4.2.1.4 Assets
An asset test will be applied to all Applicants to determine whether they satisfy the income requirements. If an Applicant has assets that exceed $30,000, the following amounts will be added to the Applicant’s Gross Household Income to determine the household’s Total Household Income:
 10% of all assets valued at between $30,001 and $130,000  30% of all assets valued over $130,000
The maximum assets allowed are $250,000. Households with assets in excess of $250,000 will be disqualified.

Assets include, but are not limited to, cash, all savings and checking accounts, stocks, bonds, real estate, gifts, and other sources of money. Pensions and federally approved retirement savings accounts, such as IRAs, Roth IRAs, and 401kKs, are excluded; however, retired Applicants who receive income from their retirement account must include such income as Gross Household Income on their application. Example 2 illustrates the calculation for determining income with assets.
318
4 HOUSEHOLD QUALIFICATIONS
First Time Homebuyer Loan Program Guidelines September 3, 2024 15 Example 2. Determining Income with Assets
Example 2.A A household of 3 earns $ 1050,000 a year and has $150,000 in total household assets $150,000 - $30,000 = $120,000 (which is less than $130,000) 10% of $120,000 = $12,000
New Total Household Income: $ 1050,000 + $12,000 = $1162,000 Example 2.B A household of 43 earns $150,000 a year and has $200,000 in total household assets $200,000 - $30,000 = $170,000 (which is more than $130,000) 10% of $130,000 = $13,000
30% of balance of $40,000 = $12,000
New Total Household Income: $ 150,000 + $13,000 + $12,000 = $175,000

4.2.2 Credit Score
A credit check will be conducted on all adults (other than dependents) in the household. Applicants must have sufficient creditworthiness to qualify. Creditworthiness means that:

1. All household individuals shall have a minimum of seven years since Chapter 7 or Chapter 13 bankruptcy discharge date and/or foreclosure or short sale and evidence of reestablished credit is provided.

2. All persons appearing on the mortgage shall have a minimum FICO credit rating of 620 points from all three credit agencies.

4.2.3 Homebuyer Education Program
Borrower(s) must successfully complete a HUD, Fannie Mae-, or City-approved First Time Homebuyer class prior to the close of escrow and must provide the City with evidence of completion. The completion date must be within six monthsone year of the proposed date of loan funding.

4.2.4 Debt to Income Ratio
Applicant(s) must have a debt to income ratio of no greater than 45%. This is determined by calculating the Applicants’ monthly debt obligations, including (but not limited to) estimated monthly housing expenses, car payments, and other loan obligations and comparing it to the Applicants’ monthly Household Income.

Student loan debt may be excluded from the monthly debt obligation calculation if the Applicant can provide documentation that repayment of the loan is deferred for a period of at least three years from the application date.

4.2.5 Preference Points
The Preference Point system provides priority to certain households who are deemed to have a priority need for housing in Dublin. Priority criteria are shown in Table 5. Loans may be approved for households who are not eligible for any Preference Points.

Each household may only claim Preference Points vary based on category and do not distinguish between adults and children. See Table 5 for details and requirements. If once for any given category. Even if two persons in the household qualify for Preference Points for the same category, the maximum preference points for that category would be two points are only awarded for one person. For example, if a husband and wife are both employed in Dublin, the couple receives only 23 Preference Points for being employed in Dublin. However,Similarly, if two Seniors make up a household, they would be entitled to only 1 Preference Point, as that category has a maximum of one preference point for household.
319
4 HOUSEHOLD QUALIFICATIONS
September 3, 2024 First Time Homebuyer Loan Program Guidelines 16 INTENTIONALLY LEFT BLANK
320
4 HOUSEHOLD QUALIFICATIONS
First Time Homebuyer Loan Program Guidelines September 3, 2024 17 Preference Points
Priority Points Proof Required
Employed in Dublin for at least 6
months
3 points
mMaximum,
one per
household
member
Copy of first and most recent pay stub establishing length of employment in Dublin;; or
Letter from employer, on company letterhead, indicating continuous employment for the past six months; or
If self-employed in Dublin, then the business must have a current City business license for at least 6 months at the time of application.

Must have been employed within the City of Dublin for at least six months.

Public service employee in
Dublin*
1 per
household
additional
Copy of first and most recent pay stub establishing length of employment; or
Copy of recent pay stub or lLetter from employer, on company letterhead, establishing public service in Dublin indicating continuous employment for the past six months ; or
For a newly hired teacher at a state-accredited school, who will be working in Dublin, a copy of employment contract; and
A letter from employer confirming employment and employer contact information.

Has resided inResides in Dublin
for at least one year
3 points
mMaximum,
one per
household
member
Copy of two utility bills (PG&E or water), one from at least one year ago and one most recent utility bill both showing the Applicant with a Dublin address; or
Copy of a current rental agreement.

Must have been a resident of the City of Dublin for at least one- year.

Seniors (62 and over) 1 per
household
A valid state driver license; or
A valid state identification card (with photo); or
A valid passport.

Permanently disabled 1 per
household
Doctor’s note confirming that Applicant is permanently disabled; or Other verification from a state agency establishing permanent disability status; or
Verification of receipt of SSI or SSDI.

Veteran 1 per
household
A military department record of service such as an original military service record or certified copy. The document must contain the length, time, and character of the service.

Has an immediate family member
who is a Dublin resident
1 per
household
Copy of utility bill (PG&E or water), showing the immediate family member with a Dublin Address; or
Copy of the immediate family member’s current rental agreement; and Copy of birth certificates for self and immediate family member, establishing relationship; or
Other legal document establishing relationship.
321
4 HOUSEHOLD QUALIFICATIONS
September 3, 2024 First Time Homebuyer Loan Program Guidelines 18 Priority Points Proof Required
Must move because housing is to
be demolished or converted to
condo
1 Letter from apartment owner or management firm verifying the imminent condominium conversion or demolition of the unit; and Confirmation from the City’s Community Development
Department.

Foreclosed/REO Property 1 A sales contract showing that the bank is selling the property and has accepted the Applicant’s purchase offer.
* A public service employee is a person who is employed by a public agency such as the City of Dublin, a firefighter or police officer assigned to work in Dublin, BART, DSRSD, or USPS working in Dublin.
322
First Time Homebuyer Loan Program Guidelines September 3, 2024 19 5 Procedures

5.1 Loan Application, Approval, and Funding
Procedures
The following are the general steps for qualifying for and finalizing a loan (see Figure 1 for an overview):

1. Review qualification requirements. Potential
Applicants should review these Guidelines and
confirm that they meet established qualification
requirements (see Section 4).

2. Pre-qualify with a lender. Potential Applicants
should work with a lender of their choosing to get
pre-qualified to purchase a home. Potential
financing must meet the requirements described in
Section 3. This will be necessary for preparing a
complete application and will give the buyers a
clear understanding of the amount of money they
are eligible to borrow for a home purchase. The
City is available to speak with lenders to clarify
Program terms and requirements.

3. Homebuyer education. Potential Applicants must
complete a First Time Homebuyer Class (see
Section 4.2.3)

4. Execute a purchase contract. Potential
Applicants should work with a real estate agent to
find a desirable home for sale in the City. Homes
may be BMR Units (most available BMR Units
are listed on the City’s website) or market rate
properties. Prepare an offer and execute a purchase
agreement on the home of your choosing.

5. Submit a FTHLP aApplication. Prepare and
submit a complete FTHLP application packet to
the City’s Housing Division. Be sure to include
supporting documentation for income and asset
verification (contact City Staff or view the City’s
website for an application package). The
application should be submitted at least four weeks
prior to the scheduled close of escrow.

6. City Staff/Loan Committee review and
qualification determination. The City will make
every effort to review the application and
qualification materials and determine eligibility
within 10 working days of receipt of a complete

9. Borrower signs City documents at close of
escrow

8. City provides escrow instructions and releases
funds and submits loan documents when
requirements are met

7. If qualified, meet with the City

6. City review and qualification, within 10 days of
receipt of complete application

5. Submit an FTHLP application

4. Choose a home in Dublin and execute a
purchase contract

3. Complete a homebuyer education class
(see Section 4.2.3)

2. Pre-qualify for a primary home loan (see
financing requirements in Section 3)

1. Review qualification requirements (see Section
4)
Figure 1. Loan Application Process
323
5 PROCEDURES
September 3, 2024 First Time Homebuyer Loan Program Guidelines 20 application. The application will be considered by City Staff in the Housing Division (to determine application completeness and basic qualification) and the City’s Loan Committee. If approved, the City will send the Applicant a conditional approval letter. Applicants who are determined to be ineligible will receive a denial letter.

7. In-personBuyer consultation. All adult members of the approved Borrower household must schedule and complete an in-persona consultation with City Staff to discuss loan terms, restrictions, and ongoing requirements. At the meeting, Borrowers will review and sign a truth in lending statement and a good faith estimate.

8. Loan documents. Following completion of the consultation, City Staff will prepare escrow instructions and submit them to the escrow officer. The instructions will describe the documentation the City will need in order to prepare loan agreements and fund the loan. Documents will include (but may not be limited to) a title report, home and pest inspection reports, an appraisal, and documents regarding the primary loan.

9. Sign paperwork. Following receipt of required paperwork from the escrow company, the City will prepare the appropriate loan documents for the Borrower to sign at closing (see Section 3.4). Once the Borrower has signed, the paperwork will be delivered to the City for signature. The City will forward this paperwork as well as a request for notice of default on the Borrower’s primary loan to the escrow officer for recordation.

10. Monitoring and correspondence. The Borrower must complete annual surveys to the City and should contact City Staff with any questions. Any default on the signed agreements may result in the City calling the loan due immediately. Borrowers must contact the City when contemplating a sale or refinance.

5.2 Pre-Qualification
The City will accept applications for preliminary review and pre-qualification. This review will confirm that the Applicant meets the qualifications described in Section 4, with the exception of the debt-to-income ratio, which cannot be determined until the City is provided with an estimate of monthly housing costs for a specific home.

Applications for pre-qualification are subject to costs to reimburse the City’s direct cost to obtain a credit report.

Pre-qualification applications are reviewed by City Staff in the Housing Division but are not reviewed by the Loan Committee. Following the review, City Staff will issue a letter of eligibility. Note that Program funding is limited and a letter of eligibility does not guarantee that funds will be available to the Applicant if/when they are requested.

5.3 BMR Unit Refinancing
BMR Unit Borrowers may keep the FTHLP loan intact through a refinance, provided that the new loan meets City standards. BMR Unit Borrowers must notify the City of their intent to refinance and follow the refinance procedures outlined in the Guidelines to the Inclusionary Zoning Regulations Ordinance. 324
5 PROCEDURES
First Time Homebuyer Loan Program Guidelines September 3, 2024 21 5.4 Loan Payoffs
Market rate home Borrowers must pay off the FTHLP loan
in the event of a refinance or resale and have the option to prepay the loan at any time. BMR Unit Borrowers must
pay off the FTHLP loan in the event of a resale and have the option to pay off the loan during a refinance or may choose to prepay the loan at any time. An overview of the payoff process is outlined in Figure 2.

The following are the general steps for the loan payoff process (see Figure 2 for an overview):

1. Provide notice and documentation. The
Borrower must provide the City with the
following:
a. A written notification of the Borrower’s
intended action.
b. A current property appraisal or a resale
purchase contract.
c. The name and contact information of the escrow officer managing the transaction, as well as an escrow number.

2. City prepares payoff demand. The City will calculate the accrued interest and equity share, if applicable, and prepare a payoff demand for the greater of the two. The equity share calculation is described in Section 3.5. The City will provide a copy of the payoff demand to the Borrower and submit the demand to the escrow officer.

3. Funds disbursed to the City. The escrow officer will disburse repayment funds to the City as stated in the payoff demand upon the close of the transaction.

4. Release and reconveyance. The City will prepare appropriate documents to release the loan documents (as described in Section 3.4) from the property.

Figure 2. Loan Payoff Process

4. The City releases loan-related restrictions from
the property

3. Repayment funds are disbursed to the City at
the close of the transaction

2. The City prepares a payoff demand and
provides it to the escrow officer

1. Notify the City of your intended action
(refinance, resale, or prepayment) and required
information
325

INTENTIONALLY LEFT BLANK
326
First Time Homebuyer Loan Program Guidelines September 3, 2024 23 6 Exceptions
Any applicant believing that his/her situation warrants an exception to any part of these Guidelines due to
circumstances outside of his/her household’s control, such as refugee status, special needs, or other hardships or special circumstances, may request an exception by
submitting a written letter to the City prior to submitting an application of any kind. The exception request
procedure is outlined in Figure 3.

The exception request must specify which particular
guideline or requirement the household cannot meet for
reasons beyond their control or other valid reasons, and/or describe the household’s unique circumstances which
warrant one or more specific exceptions to be identified in the letter, referencing the page(s) and section(s) of these Guidelines and/or application form related to the request.

Exceptions related to disabilities (reasonable
accommodations) may be requested according to this procedure, with a brief description of the exception(s) needed due to the Applicant’s disability. Such requests will be handled in accordance with the City’s reasonable accommodations policy and these Guidelines.

Exceptions will be considered by City Staff, including authorized persons in the Housing Division and/or members of the Loan Committee. The City will provide a letter response within 10 calendar days, stating whether the requested exception can be granted in full or part and the reason for such decision.

3. City Staff (Housing Division and/or Loan
Committee) review and response (within 10 days)

2. Submit exceptions request letter to the City

1. Review requirements and regulations
Figure 3. Exception Request Procedure
327
Budget Change Reference #:

From Un-Appropriated Reserves X Budget Transfer Between Funds From Designated Reserves Other
Account Amount Account Amount
29018100.66101 $180,000
9/3/2024As Presented at the City Council Meeting

CITY OF DUBLIN
Enhance the City's FTHLP by increasing the number of First Time Homebuyer Loan Program loans that the City can provide. F unding will come from the Affordable Housing Fund Balance.

REASON FOR BUDGET CHANGE
FISCAL YEAR 2024-25

BUDGET CHANGE FORM

DECREASE BUDGET AMOUNT INCREASE BUDGET AMOUNT
Affordable Housing Fund - Housing - First Time
Homeowner Loans
City Council's Approval Required
Attachment 4
328
Amendments to the First-Time
Homebuyer Loan Program Guidelines
City Council
September 3, 2024
329
Background
• 2006: City Council adopted the First Time
Homebuyer Loan Program (FTHLP)
• 2007: Changed the interest rate from a
variable interest rate, to a fixed rate of

3.5%
• 2011: Set maximum loan amount for
market rate at 10%, and below market
rate at 15% with a not to exceed loan
amount of $40,000
330
Background
• FTHLP provides deferred loan to income qualified
first-time homebuyers
– Household of Moderate Income (120% AMI) or below
– No principal or interest payment due
– Use to purchase market rate or below market rate unit 331
Background
City of Dublin Strategic Plan
• Strategy 3: Housing Inclusivity and Affordability
– Objective A: Implement the goals, policies and programs in the 2023-2031 Housing Element
– Objective C: Support programs that facilitate homeownership such as the First Time Homebuyer Loan Program
2023-2031 Housing Element
• Program E.7: Review FTHLP for opportunities to broaden use of the program and to ensure compatibility with similar loan programs 332
Program Review
Loan History
• 67 loans issued totaling $2.4 million
• 28 loans repaid totaling $1 million
• 59 loans were for Below Market-Rate (BMR) properties
• 8 loans were for Market-Rate properties
Households T ypes
• 63 loans for moderate-income households
• 2 loans for low-income households
• 2 loans for very-low-income households
333
Program Review
• Program underutilized in recent years
– Historically low interest rates
– Increasing home prices
– Compatibility with other programs
• Uptick in activity in last fiscal year
– Coincides with increasing interest rates
334
FTHLP Peer Comparison
City
Interest
Rate
Loan Term in
years
Max Loan Amt
BMR Unit
(% of price)
Max Loan Amt
Market Rate Unit
(% of price)
Max Loan Amt
($)
Min Down
payment
(% of price)
Dublin 3.5% 30 15% 10% $40,000 3.5%
Concord 0.0% 15 20% 20% $40,000 3.0%
Livermore - BEGIN 3.0% 30 20% 20% $30,000 3.0%
Livermore - CalHome 3.0% 30 20% 20% $60,000 3.0%
Livermore -
Non-CalHome (MAP) 3.0% 20 20% 20% $60,000 3.0%
Pleasanton 0.0% 30 20% 20% $100,000 3.0%
Alameda County - AC
Boost 0.0% 30 10% 50% $210,000 0.0%
Walnut Creek - not
BEGIN 0.0% 45 17% 17% $65,000 3.0%
Walnut Creek - BEGIN 1.0% 30 20% 20% Not specified 3.0% Napa 1.0% 30 30% 30% $150,000 1.0%
Average 1.4% 31 20% 20% $ 83,000 2.8%
335
Recommendations for the FTHLP
• Lower the interest rate from 3.5% to 3%
• Lower the minimum downpayment from 3.5% to 3%
• Increase loan amount to 20% for market rate and BMR properties • Increase the not-to-exceed loan amount from $40k to $100k • Allow the City loan position to be subordinated behind the primary mortgage and other public downpayment assistance programs • Minor edits and clarifications to the Guidelines
336
FTHLP Family of 2 Buyer Scenario
• Median Income – AMI of 100 • Moderate Income – AMI of 120 Family of 2 First Time Homebuyers
As of
8/14/2024
Median income - Annual Income $124,550
Assumes HOA Dues, Property Taxes and Homeowners
Insurance
30-year term at 6% interest
Buyer puts 3% down and gets $100k in FTHLP funds
Maximum Home Purchase Price of $541,650

Family of 2 First Time Homebuyers
As of
8/14/2024
Moderate income - Annual Income $149,500
Assumes HOA Dues, Property Taxes and
Homeowners Insurance
30-year term at 6% interest
Buyer puts 3% down and gets $100k in FTHLP funds
Maximum Home Purchase Price of $647,770

337
FTHLP Family of 4 Buyer Scenario
• Median Income – AMI of 100 • Moderate Income – AMI of 120 Family of 4 First Time Homebuyers
As of
8/14/2024
Median Income - Annual Income $155,700
Assumes HOA Dues, Property Taxes and Homeowners
Insurance
30-year term at 6% interest
Buyer puts 3% down and gets $100k in FTHLP funds
Maximum Home Purchase Price of $674,140

Family of 4 First Time Homebuyers
As of
8/14/2024
Median Income - Annual Income $186,850
Assumes HOA Dues, Property Taxes and
Homeowners Insurance
30-year term at 6% interest
Buyer puts 3% down and gets $100k in FTHLP funds
Maximum Home Purchase Price of $806,600

338
Recommendation
Adopt the Resolution Amending the First Time Homebuyer Loan Program Guidelines, and approve the budget change.
339
Questions
340