Exeter City Council
January 27, 2026

EXETER CITY COUNCIL

REGULAR MEETING AGENDA
January 27, 2026, 6:00 PM
City Hall, 137 North F Street
Exeter, California 93221
Mayor
Jacob Johnson
Mayor Pro Tem
Jeff Wilson
Council Members
Vicki Riddle
Frankie Alves
Bobby Lentz
Notice is hereby given that the Exeter City Council will hold a Regular Meeting on Tuesday, January 27, 2026, at 6:00 p.m. in person at Exeter City Hall located at 137 N. F St. in Exeter California, 93221.

Staff Reports related to items on the agenda are available on the City’s website at https://cityofexeter.ca.gov/ and available for viewing at City Hall. 6:00 p.m.

A. CALL TO ORDER CLOSED SESSION
B. PUBLIC COMMENTS REGARDING CLOSED SESSION MATTERS
Comments from the public are limited to items listed on the closed session matters (GC 54954.3a). Speakers will be allowed three (3) minutes. Please begin your comments by stating your name and providing your City of residence.

C. ADJOURN TO CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION(S)

1. GC 54956.9(d)(2) Conference with Legal Counsel
Re: Anticipated Litigation – Significant Exposure to Litigation: One (1) Case (facts not known to potential plaintiffs)

2. GC 54957.6 Conference with Labor Negotiations
Agency Negotiator: City Administrator
Employee Groups: All Represented and Unrepresented Employees 7:00 p.m.

D. CALL TO ORDER REGULAR SESSION
E. INVOCATION
F. PLEDGE OF ALLEGIANCE
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

G. PUBLIC COMMENTS
This is the time for citizens to comment on subject matters that are not on the agenda that are within the jurisdiction of the Exeter City Council. In compliance with public meeting laws, Council cannot discuss topics that are not included on the published agenda. This is also the time for citizens to comment on items listed on the Consent Calendar or to request an item from the Consent Calendar be pulled for discussion purposes. Public comments related to all pulled Consent Calendar Items and all Individual Business or Public Hearing Items that are listed on this agenda will be heard at the time that item is discussed or at a time the Public Hearing is opened for comment.

In fairness to all who wish to speak tonight, comments shall be limited to five (5) minutes for each individual, ten (10) minutes for an individual representing a group, and thirty (30) minutes overall for the entire public comment period, unless otherwise indicated by the Mayor. Although not required, speakers are asked to begin their comments by stating their name and city of residence.

H. CONSENT CALENDAR
Items listed under the Consent Calendar are considered routine and will be enacted by one motion. There will be no separate discussion of these matters unless a request is made and then the item will be removed from the Consent Calendar to be discussed and voted upon by a separate motion.

1. Approval of January 13, 2026, Regular Meeting Minutes (pp. 5 – 9)

2. Approval of the Payment of Bills for January 9, 2026 (pp. 10 – 16)

3. Approval of Payroll for the Period of December 29, 2025, to January 11, 2026 (pp. 17 – 24)

4. Approval of a Facility Use Request, Street Closure, and a Special Event Fee Waiver in the Amount of $171.00 from the Exeter Chamber of Commerce for the 2026 Weekly Farmer’s Market beginning March 4, 2026 (pp. 25 – 33)

5. Approval of a Special Event, Facility Use, Intersection Closure, and Traffic Control for a 2- Mile Foot Race on Various City Streets hosted by FYE Events on Saturday, March 7, 2026, between the hours of 6:00 a.m. and 12:00 p.m. (pp. 34 – 39)

6. Approval of Amendment No. 2 to Professional Services Agreement for Contract Services for the City of Exeter’s Wastewater Treatment Plant and Water Distribution System with Central Cal Waterworks Inc. extending contracted services through June 30, 2026 (pp. 40 – 59)

7. Quarterly Update of the Internal Review for City of Exeter Landscape and Lighting Maintenance Assessment Districts (LLMADs) (pp. 60 – 61) January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

I. INDIVIDUAL BUSINESS ITEMS
Comments related to Individual Business and Public Hearing Items are limited to three (3) minutes per speaker, for a maximum of 30 minutes per item. The Mayor may reasonably limit or extend the public comment period to preserve the Council's interest in conducting efficient, orderly meetings.

1. Consider Adoption of Resolution No. 2026-03, A Resolution of the City Council of the City of Exeter, Approving Guidelines for the Owner-Occupied Housing Rehabilitation Program and First-time Homebuyer Program (pp. 62 – 178) Presented by Eekhong Franco, Finance Director

2. Discussion and Direction Regarding Potential Updates to Animal Control–Related Fees and the City’s Fee Schedule (pp. 179 – 236)
Presented by Jason Ridenour, City Administrator

3. Provide Direction Regarding the Appointment Process to Fill a Vacancy on the Measure P Citizens Oversight Committee (pp. 237 – 244)
Presented by Francesca Quintana, City Clerk/Human Resources Manager

4. Consider Authorizing Staff to Enter Into Negotiations with A&M Consulting Engineers for Contract City Engineer Services for the City of Exeter in Accordance with Request for Proposals No. 25-03 (pp. 245 – 304)
Presented by Zachary Boudreaux, Public Works Director

5. Consider Authorizing the Transition of Park and Landscape and Lighting Maintenance Assessment District (LLMAD) Maintenance Services to In-House Operations (pp. 305 – 337)
Presented by Zachary Boudreaux, Public Works Director
J. CITY COUNCIL ITEMS OF INTEREST
K. CITY ADMINISTRATOR/DEPARTMENT COMMENTS
L. REGULAR MEETING ADJOURNMENT
State of California )
County of Tulare ) ss.

City of Exeter )
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

I declare under penalty of perjury that I am employed by the City of Exeter, in the Administrator’s Office; and that I posted this Agenda on the bulletin board outside of City Hall 137 N. F St. Exeter CA 93221 on January 23, 2026, and online on the City of Exeter website. _______________________________________________
Francesca Quintana, City Clerk
In compliance with the Americans with Disabilities Act, and the California Ralph M. Brown Act, if you need special assistance to participate in this meeting, or to be able to access this agenda and documents in the agenda packet, please contact the City Clerk (559)592-9244. Notification prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting and/or provision of an appropriate alternative format of the agenda and documents in the agenda packet. (28 CFR 35.102-35. 104 ADA Title II).

Materials related to an item on this Agenda submitted to the legislative body after distribution of the agenda packet are available for public inspection at City of Exeter, Administration Office 314 W. Firebaugh, Exeter CA 93221 during normal business hours.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

EXETER CITY COUNCIL

REGULAR MEETING AGENDA

ACTION MINUTES
January 13, 2026, 6:00 PM
City Hall, 137 North F Street
Exeter, California 93221
Mayor
Jacob Johnson
Mayor Pro Tem
Jeff Wilson
Council Members
Vicki Riddle
Frankie Alves
Bobby Lentz
Notice is hereby given that the Exeter City Council will hold a Regular Meeting on Tuesday, January 13, 2026, at 6:00 p.m. in person at Exeter City Hall located at 137 N. F St. in Exeter California, 93221.

Staff Reports related to items on the agenda are available on the City’s website at https://cityofexeter.ca.gov/ and available for viewing at City Hall. 6:00 p.m.

A. CALL TO ORDER CLOSED SESSION
Mayor Pro Tem called the closed session to order at 6:00 p.m.

B. PUBLIC COMMENTS REGARDING CLOSED SESSION MATTERS
City Administrator noted for the record that Council Member Vicki Riddle was unable to attend the meeting in person due to illness and requested Council approval for her to participate via teleconference pursuant to SB 707 meeting requirements. Council approved the request. Members of the public were advised that teleconference participation was also available, with connection information provided by the City Clerk.

Approval for Council Member Riddle to attend via teleconference pursuant to SB 707 1st 2nd Result JONHSON WILSON ALVES RIDDLE LENTZ
WILSON ALVES (3-0) ABSENT AYE AYE ABSTAINED AYE
No public comments were presented.

C. ADJOURN TO CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION(S)

1. GC 54956.9(d)(2) – Conference with Legal Counsel
Re: Anticipated Litigation/Significant Exposure to Litigation – Three (3) Cases: Facts Not Known to Potential Plaintiffs

2. GC 54956.9(d)(4) Conference with Legal Counsel
Re: Anticipated Litigation – Initiation of Litigation: One (1) Case January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

3. 54956.9(d)(1) Conference with Legal Counsel
Re: Existing Litigation – One (1) Case:

City of Exeter v. Sandra Kay Bumgarner, et al., Tulare County Superior Court No.

VCU323368
7:00 p.m.

D. CALL TO ORDER REGULAR SESSION
Mayor Pro Tem called the regular session to order at 7:01 p.m.

E. INVOCATION
Led by Mayor Pro Tem Wilson.

F. PLEDGE OF ALLEGIANCE
Led by Mayor Pro Tem Wilson.

G. PUBLIC COMMENTS
Public comment from George Eddy, Superintendent of Exeter Unified School District (EUSD), and Virginia Padilla EUSD Board President. Both speakers expressed their support for current City staff, commended the work performed since their respective appointments, and praised the School Resource Officer (SRO) program and the positive relationships that have been established.

H. SPECIAL PRESENTATIONS

1. Service Recognition of Operations Manager Dan Espinola (pp. 5 – 6) Presented by Mayor Pro Tem Wilson

2. Employee of the Quarter Award (pp. 7 – 8)
Presented by Mayor Pro Tem Wilson
I. CONSENT CALENDAR
Items listed under the Consent Calendar are considered routine and will be enacted by one motion. There will be no separate discussion of these matters unless a request is made and then the item will be removed from the Consent Calendar to be discussed and voted upon by a separate motion.

1. Approval of December 9, 2025, Regular Meeting Minutes (pp. 9 – 14)

2. Approval of the Payment of Bills for December 8, 2025, December 12, 2025, and December 26, 2025 (pp. 15 – 29)

3. Approval of Payroll for the Periods of November 17, 2025, to November 30, 2025; December 1, 2025, to December 14, 2025, and December 15, 2025, to December 28, 2025 (pp. 30 – 49)
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

4. Approval of a Temporary Street Closure and the Use of Joyner Park for a High School Reunion Special Event hosted by the Center for Art Culture & History (CACHE) on Saturday April 18, 2026 (pp. 50 – 55)

5. Approval of a Temporary Street Closure, Temporary No Parking and a Special Event Fee Waiver Request for the 2026 Rocky Hill Triathlon on March 14, 2026 (pp. 56 – 61)

6. Approval of a Facility Use Request, Temporary Street Closure and a Fee Waiver Request for the Annual Motorfest on March 14, 2025, from the Exeter Chamber of Commerce (pp. 62 – 69)

7. Approval of a Facility Use Request and a Special Event Fee Waiver for a ‘Downtown Second Saturday’ Event beginning February 14, 2026, from the Exeter Mural Committee and Exeter Mural Store (pp. 70 – 75)

8. Adoption of Resolution No. 2026-01, A Resolution of the City Council of the City of Exeter for Fiscal Year 2025-26 Transportation Development Act Claim by the City of Exeter and Concurrence to a Claim by City of Visalia, Tulare County Regional Transit Agency, and Tulare County Association of Governments (TCAG) (pp. 76 – 80)

9. Consider authorizing the Exeter Little League to Place an Additional Cargo Container for Storage at Dobson Field Adjacent to their Existing Seatrain (pp. 81 – 83)

10. Adoption of Resolution No. 2026-02, A Resolution of the City Council of the City of Exeter, Approving the Request of a 3-Year Pilot Project to Utilize $35,000 a Year of Measure R Funding for the Maintenance of Bike and Pedestrian Trail/Walking Path Improvements within the City of Exeter and Authorization to Sign a Supplemental Agreement with Tulare County Transportation Authority (TCTA) (pp. 84 – 87)

11. Approval of Addendum No. 1 to the 2024–2026 School Resource Officer Agreement with Exeter Unified School District to Reduce SRO Staffing from Two Officers to One Officer for the 2025–2026 School Year and Adjust Costs Accordingly (pp. 88 – 102) Approval of Consent Calendar
1st 2nd Result JONHSON WILSON ALVES RIDDLE LENTZ
ALVES LENTZ (4-0) ABSENT AYE AYE AYE AYE
J. INDIVIDUAL BUSINESS ITEMS
Comments related to Individual Business and Public Hearing Items are limited to three (3) minutes per speaker, for a maximum of 30 minutes per item. The Mayor may reasonably limit or extend the public comment period to preserve the Council's interest in conducting efficient, orderly meetings.

1. Second Reading: Ordinance No. 717, An Ordinance of the City of Exeter Repealing and Replacing Title 6 Animals, Chapters 6.04 through 6.16, and Adding Chapters 6.20, 6.22,

6.24 and 6.28 to the City of Exeter Code of Ordinances, Regarding Comprehensive Updates to the City’s Animal Control Regulations (pp. 103 – 160) Presented by Julia Lew, City Attorney
January 27, 2026 Regular Meeting of the Exeter City Council Agenda Packet

City Attorney provided a report for the City Council and members of the public.

Mayor Pro Tem opened the public hearing at 7:15 p.m. Receiving no public comment, Mayor Pro Tem closed the public hearing at 7:15 p.m.

City Attorney provided second reading of Ordinance No. 717 by title only.

Approval of Ordinance No. 717, An Ordinance of the City of Exeter Repealing and Replacing Title 6 Animals, Chapters 6.04 through 6.16, and Adding Chapters 6.20, 6.22, 6.24 and 6.28 to the City of Exeter Code of Ordinances, Regarding Comprehensive Updates to the City’s Animal Control Regulations
1st 2nd Result JONHSON WILSON ALVES RIDDLE LENTZ
WILSON ALVES (4-0) ABSENT AYE AYE AYE AYE

2. Consideration of Design of New Mike Germaine Bark Park Sign in Honor of Mike Germaine and Park Sign Construction Material (pp. 161 – 170) Presented by Zachary Boudreaux, Public Works Director
Public Works Director provided a report for the City Council and members of the public.

Public comment from Sherri Wilson. Wilson asked clarifying questions about the signs and the Public Works Director and City Administrator provided responses.

Council provided direction to update the painted Bark Park sign, update the brick Bark Park sign, install a new interior sign featuring the City of Exeter aerial design, and include a plaque honoring Mr. Germaine. Council also directed that future park sign replacements follow the City of Exeter aerial sign design.

Approval of Design of New Mike Germaine Bark Park Sign in Honor of Mike Germaine and Park Sign Construction Material
1st 2nd Result JONHSON WILSON ALVES RIDDLE LENTZ
WILSON ALVES (4-0) ABSENT AYE AYE AYE AYE

3. Council Review and Direction Regarding Downtown Parking Improvements (pp. 171 – 179)
Presented by Kevin Gross, Contract City Engineer
No action was taken on this item as it was for informational purposes only.

K. CITY COUNCIL ITEMS OF INTEREST
Council Member Alves requested that the Mike Germaine plaque be placed on a future agenda for discussion and congratulated Mayor Johnson on the birth of his new baby.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

Council Member Lentz had no report and also congratulated the Mayor.

Council Member Riddle announced that meetings for TCAG, TCRTA, and Downtown Merchants are scheduled for the upcoming week.

Mayor Pro Tem Wilson congratulated Mayor Johnson on the birth of his new baby, reported attending the Tooleville meeting, and noted that December was a busy month.

L. CITY ADMINISTRATOR/DEPARTMENT COMMENTS
City Administrator, Public Works Director, Chief of Police, Finance Director, City Attorney and City Clerk/Human Resources Manager provided comments/reports.

M. REGULAR MEETING ADJOURNMENT
Mayor Pro Tem Wilson adjourned the meeting at 8:24 p.m. _________________________
Francesca Quintana, City Clerk
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

Agenda Item Staff Report
Meeting Date:

January 26, 2026
Wording for Agenda:

Approval of the Payment of Bills for January 9, 2026.

Submitting Department:

Finance
Contact Name:

Eekhong Franco, Finance Director
Staff recommends that the City Council approve the payment of bills in the following amount. • $381,512.44 dated January 9, 2026
The Finance Department has reviewed and compiled invoices and expenses for city operations for approval by the City Council, which are summarized and attached to this report. This action authorizes the disbursement of funds for routine and approved expenditures necessary to continue city services.

The payment of bills is a recurring action presented to the City Council to ensure transparency and fiscal oversight of city expenditures. The item reflects payments made for various city services, supplies, utilities, and obligations incurred in the normal course of business. All bills have been reviewed by the Finance Department and are within budgeted appropriations. • Total amount: $381,512.44 dated January 9, 2026
• Funding sources: Various city departmental budgets
• Budget implications: All payments are within the approved Fiscal Year 2025–2026 budget. No additional appropriations are necessary.

For action by:
☒City Council
Regular Session:
☒Consent Calendar
☐Regular Item
☐Public Hearing
Review:

City Administrator
(Initials Required)
__J.R___
Agenda Item Number: H.2.

Department Recommendation:

Summary:

Background:

Fiscal Impact:

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

The City Council routinely approves payment of bills during regular meetings. This item is part of the standard financial reporting and authorization process. • Payments for Publication Report dated January 9, 2026.

I move to approve the payment of bills in the amount of $381,512.44 dated January 9, 2026.

Prior City Council Actions:

Attachments:

Recommended motion to be made by the City Council:

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

AVENU FINANCIAL SYSTEM CITY OF EXETER
01/12/2026 15:31:52 Payments for Publication GL050S-V08.23 COVERPAGE GL335R
Report Selection:

Run Group... 010926 Comment... 010926 CHECK RUN
Approval Date for Report........... 01 09 2026
Payments Through Date.............. 01 09 2026
Cutoff Amount to be Used........... 0000000
RUN GROUP... 010926 COMMENT... 010926 CHECK RUN

DATA-JE-ID DATA COMMENT
-------------- ------------------------
D-01092026-504 CHECK RUN 01/09/2026
Run Instructions:

Jobq Banner Copies Form Printer Hold Space LPI Lines CPI CP SP RT L 01 LASERHP4 Y S 6 066 10
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

AVENU FINANCIAL SYSTEM CITY OF EXETER
1/12/2026 15:31:52 Payments for Publication GL335R-V08.23 PAGE Approved on 1/09/2026 for Payments Through 1/09/2026
Vendor Name Description Amount
A.R.E AUTO PARTS INC. NAPA COMMER BTRY-BACKHOE 2,299.31 ABLE INDUSTRIES, INC 12/25 BLMNT BIKE PATH 967.50
ADVENTIST HEALTH TULARE NOV LAB FEES 258.00
ALTA LANGUAGE SERVICES INC MORALES, S-IVR TEST SPAN 58.00 ANDERSON FENCE COMPANY REPROGRAM ENTRANCE GATE 585.00
AT&T NOV 2025 LIVESCAN 112.19
BANC OF AMERICA LEASING PAYMENT 47 PRINCIPAL 46,351.61
BASIC JAN 2026 COBRA FEE 35.01
BLUE SHIELD OF CALIFORNIA 1/1/26-1/31/26 47,282.64
C.L.E.A. JAN 2026 LT DISABILITY 128.00
CENTRAL CAL WATERWORKS, INC CPO DEC 2025 WWTP 35,364.92 CENTRAL VALLEY BUSINESS FORMS NO PARKING-SIGN 11X14 190.31 CITY OF EXETER 11/18-12/18/25 MUSEUM 879.42
CONSOLIDATED ELECTRICAL DISTRI SINGLE PORT CABLE-PD/ADM 190.04 COUNTY OF TULARE NOV PRINT MONTHLY 4,739.36
COZADAMS CLEANING LLC CLEANING SERVICES-PD/ADM 910.00
CULLIGAN DEC FD WTR SERVICE 161.70
DATA TICKET, INC NOV CITATION PROCESSING 163.65
DOOLEY ENTERPRISES INC 9MM 124 GR FULL METAL J 1,606.73 ELITE CORPORATE MEDICAL SERV MEDICAL CLINIC FEE-53 1,404.50 EXETER IRRIGATION DISTRICT RH DR BOLLARD REPAIR 138.08
EXETER MERCANTILE CO. BRAKE LABOR-FD ENG 11 937.30
EXETER MOTORS, INC. COVER ASY-SE- E14 757.71
FERGUSON US HOLDINGS, INC 4-1/2 UPPER STEM F/ A423 1,824.41 FRESNO OXYGEN STD LRG FOWS CYLS 175.29
GOVERNMENT REVENUE SOLUTIONS DEC 2025 APP HOSTING 3,564.77 GREEN BOX RENTALS INC 12/15/25-1/14/26 STRG 228.38
HIGH SIERRA LUMBER CO. DRYWALL 1/2X4/8-PD/ADMIN 527.46
HPS WEST, INC 1" BLMJ METER LF BODY 12,107.50
JACK GRIGGS INC DEC 2025 GAS 10,045.07
MID VALLEY DISPOSAL, LLC DEC 2025 MID VALLEY 122,332.43 MOORE TWINING ASSOCIATES, INC TITLE 22 10 DAY 10,464.00 PACE SUPPLY CORP. 3/4 LF COP X FIP-PD/ADMI 825.80
PENA'S DISPOSAL INC PD DEC 2025 SHRED 152.12
PROFORCE SBA OUTER CARRIER 576.31
QUAD KNOPF ENGINEERING 250008 25 GEN ENG SERVIC 13,383.86 SEQUOIA DOOR, INC. REKEY/REPLACE FRNT DR-CH 313.82
SERVIAM BY WRIGHT LLP NOV 2025-333 PALM 2,368.80
SIERRA SANITATION, INC 12/29-1/25/26 300 S E ST 1,121.51 SOUTHERN CALIFORNIA EDISON 7269-12/1/25-12/31/25 9,182.44 SOUTHERN CALIFORNIA GAS CO. 0891- 11/26/25-12/29/25 2,765.90 STANDARD INSURANCE CO. JAN 2026 LIFE INSURANCE 2,388.12 STIMPEL CONSTRUCTION INC PW RESTROOM IMPROVEMENTS 19,739.55 TECHNOFLO SYSTEMS EMRGNCY REP WELL 13-MTR 7,937.19
TRANSUNION RISK & ALTERNATIVE DEC 2025 PERSON SEARCH 100.00 USA BLUEBOOK BLEED VALVE ASSEMBLY 224.51
VALLEY EXPETEC JAN MONTHLY BILLING 7,891.42
VAST NETWORKS JAN 2026 FD INTERNET 2,500.00
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

AVENU FINANCIAL SYSTEM CITY OF EXETER
1/12/2026 15:31:52 Payments for Publication GL335R-V08.23 PAGE Approved on 1/09/2026 for Payments Through 1/09/2026
Vendor Name Description Amount
WEST COAST TOW TOWING FEE-LIC #9TIX882 600.00
4CREEKS, INC 22164 EXETER CITY STANDA 2,650.80
** Final Totals... 381,512.44
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

AVENU FINANCIAL SYSTEM CITY OF EXETER
1/12/2026 15:31:52 Payments for Publication GL335R-V08.23 PAGE TOTAL NUMBER OF RECORDS PRINTED 231
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

AVENU FINANCIAL SYSTEM CITY OF EXETER
01/12/2026 15:31:52 Payments for Publication GL060S-V08.23 RECAPPAGE GL335R
FUND RECAP:

FUND DESCRIPTION DISBURSEMENTS
---- ----------------------------
104 GENERAL FUND 56,595.00
105 WATER FUND 99,051.51
106 SANITATION FUND 123,083.67
107 SEWER FUND 40,616.30
109 GAS TAX FUND 9,182.44
121 INSURANCE FUND 51,110.27
131 MEASURE R 967.50
140 LANDSCAPE AND LIGHTING DISTR 905.75
TOTAL ALL FUNDS 381,512.44
BANK RECAP:

BANK NAME DISBURSEMENTS
---- ----------------------------
BANK BANK OF THE SIERRA 381,512.44
TOTAL ALL BANKS 381,512.44
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

Agenda Item Staff Report
Meeting Date:

January 27, 2026
Wording for Agenda:

Approval of Payroll for the Period of December 29, 2025, to January 11, 2026.

Submitting Department:

Finance
Contact Name:

Eekhong Franco, Finance Director
Staff recommend that the City Council approve payroll for the period of December 29, 2025 to January 11, 2026, in the following amounts.
• $94,467.41 for December 29, 2025, to January 11, 2026, period with a check date of January 16, 2026.

This item requests City Council approval of payroll expenditures incurred during the pay period of December 29, 2025, to January 11, 2026. Timely approval ensures the city remains compliant with labor obligations and continues uninterrupted compensation to employees.

The City of Exeter processes payroll on a biweekly basis. City Council approval is required for each payroll cycle as part of the city’s fiscal oversight procedures. The current payroll covers all regular full-time, part-time, and temporary employees for the specified pay period. • Total payroll amount: $94,467.41 (for December 29, 2025 to January 11, 2026, payroll period period)
• Funding source: Approved departmental salary budgets
For action by:
☒City Council
Regular Session:
☒Consent Calendar
☐Regular Item
☐Public Hearing
Review:

City Administrator
(Initials Required)
__J.R. __
Agenda Item Number: H.3.

Department Recommendation:

Summary:

Background:

Fiscal Impact:

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

• Budget implications: Payroll is within the adopted Fiscal Year 2025-2026 budget; no additional funds are required.

Payroll approval is a standing item brought to the City Council regularly to ensure accountability and continuity of operations.
• Payroll Register for the period December 29, 2025, to January 11, 2026 I move to approve payroll for the period of $94,467.41 for December 29, 2025, to January 11, 2026, period.

Prior City Council Actions:

Attachments:

Recommended motion to be made by the City Council:

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

PAYROLL........S BI-WEEKLY RUN-01/15/2026 12.31.11 PAGE 1 CHECK FORM..CHEK CHECK REGISTER PR311R-V14.25 Paymate
PERIOD 2 DATING 12/29/2025- 1/11/2026 CHECK DATE 1/16/2026

DIRECT DEPOSIT IS TURNED ON

CHECK CHECK EMPLOYEE/BANK/VENDOR CHECK

NUMBER AMOUNT NAME CODE SEQ
1786 63.69 CA STATE DISBURSEMENT UN 2 1 VENDOR CHECK
1787 27.70 JOHNSON/JACOB 739 1
1788 1,496.35 ROBLES JR/EVERARDO 744 1
1789 5,359.66 ROBLES JR/EVERARDO 744 2
1790 349.08 PATTISON/LESLIE ALDENE 781 1
1791 721.34 CREECH/JACE W 777 1
1792 271.51 O'SHAUGHNESSY/BRIDGET E 751 1
1793 1,586.23 O'SHAUGHNESSY/BRIDGET E 751 2
TOTALS FOR CHECK FORM: CHEK

NEGOTIABLE CHECKS COUNTS
9,811.87 *EMPLOYEE CHECKS 7

63.69 *VENDOR CHECKS 1

0.00 *BANK CHECKS 0
9,875.56 **TOTAL NEGOTIABLE CHECKS 8

OTHER CHECKS

0.00 *MANUAL CHECKS 0

0.00 *CANCELLED CHECKS 0
9,875.56 **TOTAL FOR CHECK FORM

NON-NEGOTIABLE CHECKS

0.00 *DIRECT DEPOSIT STUBS 0

0.00 *VENDOR DIR DEP STUBS 0
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

PAYROLL........S BI-WEEKLY RUN-01/15/2026 12.31.11 PAGE 2 CHECK FORM..STUB CHECK REGISTER PR311R-V14.25 Paymate
PERIOD 2 DATING 12/29/2025- 1/11/2026 CHECK DATE 1/16/2026

DIRECT DEPOSIT IS TURNED ON

CHECK CHECK EMPLOYEE/BANK/VENDOR CHECK

NUMBER AMOUNT NAME CODE SEQ
54482 175.50 CLOCEA 4 1 VENDOR STUB ONLY
54483 336.00 EXETER POLICE OFFICER AS 3 1 VENDOR STUB ONLY 54484 210.48 EXETER POLICE OFFICER AS 3A 1 VENDOR STUB ONLY 54485 2,250.82 ARIAS/CHRISTINA 730 1 STUB ONLY
54486 2,706.61 QUINTANA FRANCESCA N 742 1 STUB ONLY
54487 4,709.32 RIDENOUR/JASON CHARLES 763 1 STUB ONLY
54488 1,511.01 CARTER/AMY JO 502 1 STUB ONLY
54489 4,285.83 FRANCO/EEKHONG 304 1 STUB ONLY
54490 18.93 HERNANDEZ/XOCHITL 306 1 STUB ONLY
54491 1,266.61 MILLER/CATHEY RENE 734 1 STUB ONLY
54492 1,488.11 RAMOS LEON/YOSENIA 776 1 STUB ONLY
54493 1,699.28 TOBIAS/ANTHONY JORDAN 746 1 STUB ONLY
54494 554.05 VEGA/ASHLEY MAKAYLA 753 1 STUB ONLY
54495 2,146.71 BROWN/ANDREW EUGENE 762 1 STUB ONLY
54496 3,035.38 BRYANT/EZRA JOSEPH 752 1 STUB ONLY
54497 1,710.73 CARRETERO/VANESSA 402 1 STUB ONLY
54498 2,873.43 GREEN GROVE/BRAYDEN TAY 767 1 STUB ONLY
54499 3,366.25 HEINKS/RYAN DAVID 765 1 STUB ONLY
54500 2,040.20 HERNANDEZ/ANDY 780 1 STUB ONLY
54501 1,322.11 HILL/HANNAH GRACE 747 1 STUB ONLY
54502 2,034.53 LINARES/FRANCISCO JR 772 1 STUB ONLY
54503 2,040.26 MAGANA MARTINEZ JOEL 773 1 STUB ONLY
54504 3,449.46 MOORE/ROBERT HARRY 764 1 STUB ONLY
54505 2,468.61 MORALES/SKYLEENA ROSE 779 1 STUB ONLY
54506 2,590.27 PRIDEAUX/TRACI 448 1 STUB ONLY
54507 4,363.36 SCHIMPF/ROBERT BRIAN 766 1 STUB ONLY
54508 2,096.00 SHIELDS/ZION 708 1 STUB ONLY
54509 2,657.77 VILLARREAL/ISIDRO 707 1 STUB ONLY
54510 263.39 YARBER/ISABEL 422 1 STUB ONLY
54511 468.42 YARBER/ISABEL 422 2 STUB ONLY
54512 1,825.20 ALDRIDGE/GARY 618 1 STUB ONLY
54513 3,548.17 BOUDREAUX/ZACHARY MICHA 756 1 STUB ONLY
54514 85.46 GOLDSTROM/NORMAN 629 1 STUB ONLY
54515 1,845.52 HUGGINS/KYLE AARON 621 1 STUB ONLY
54516 1,898.14 RIVERA/RYAN 733 1 STUB ONLY
54517 741.83 WENDT/EDDIE 626 1 STUB ONLY
54518 1,607.49 GARVER/ELIJAH 712 1 STUB ONLY
54519 1,808.88 ARROYO/MARIE 623 1 STUB ONLY
54520 2,443.86 MILLAN/MARCUS 622 1 STUB ONLY
54521 1,533.56 QUIROZ/PATRICK P 512 1 STUB ONLY
54522 1,616.81 RAMIREZ/GABRIEL GRACILI 761 1 STUB ONLY
54523 1,555.22 RAMIREZ/JUAN 608 1 STUB ONLY
54524 721.34 RANGEL/JOSE A 775 1 STUB ONLY
54525 3,220.94 HIFNER/CHRISTOPHER 736 1 STUB ONLY
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

PAYROLL........S BI-WEEKLY RUN-01/15/2026 12.31.11 PAGE 3 CHECK FORM..STUB CHECK REGISTER PR311R-V14.25 Paymate
PERIOD 2 DATING 12/29/2025- 1/11/2026 CHECK DATE 1/16/2026

DIRECT DEPOSIT IS TURNED ON

CHECK CHECK EMPLOYEE/BANK/VENDOR CHECK

NUMBER AMOUNT NAME CODE SEQ
TOTALS FOR CHECK FORM: STUB

NEGOTIABLE CHECKS COUNTS

0.00 *EMPLOYEE CHECKS 0

0.00 *VENDOR CHECKS 0

0.00 *BANK CHECKS 0

0.00 **TOTAL NEGOTIABLE CHECKS 0

OTHER CHECKS

0.00 *MANUAL CHECKS 0

0.00 *CANCELLED CHECKS 0

0.00 **TOTAL FOR CHECK FORM

NON-NEGOTIABLE CHECKS
83,869.87 *DIRECT DEPOSIT STUBS 41
721.98 *VENDOR DIR DEP STUBS 3
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

PAYROLL........S BI-WEEKLY RUN-01/15/2026 12.31.11 PAGE 4 RECAP BY FUND CHECKS/STUBS/MANUAL/CANC'D PR311R-V14.25 Paymate PERIOD 2 DATING 12/29/2025- 1/11/2026 CHECK DATE 1/16/2026

EMPLOYER FUND HOME WORKED WORKED

CODE CODE TOTALS TOTALS DIR DEP
1 104 78,202.05 59,382.69 52,149.90
1 105 10,401.01 14,671.24 14,310.56
1 106 .00 853.45 853.45
1 107 .00 11,608.28 11,247.62
1 121 .00 2,087.40 2,087.40
1 141 5,078.68 5,078.68 3,220.94
NOTE--"HOME TOTALS" CHECK AMOUNT CAN BE RECONCILED TO THE FIGURES OF THE FOLLOWING REPORTS:
#1 CALCULATION TOTALS BY HOME FUND (NET PAY + REIMB. EXP.) #2 PAYROLL REGISTER (CHECK AMOUNT)
NOTE--"WORKED TOTALS" CHECK AMOUNT CAN BE RECONCILED TO THE FIGURES OF THE FOLLOWING REPORTS:
#1 CALCULATION TOTALS BY FUND WORKED (NET PAY + REIMB. EXP.) #2 LABOR DISTRIBUTION (NET PAY + REIMB. EXP.)
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

PAYROLL........S BI-WEEKLY RUN-01/15/2026 12.31.11 PAGE 5 RECAP BY DEPT CHECKS/STUBS/MANUAL/CANC'D PR311R-V14.25 Paymate PERIOD 2 DATING 12/29/2025- 1/11/2026 CHECK DATE 1/16/2026

EMR FUND DEPT HOME FULL PART TEMP FEMALE

CODE CODE CODE TOTALS EMPLOYEE COUNTS
1 104 401 CITY COUNCIL 27.70 1
1 104 402 ADMINISTRATION 9,666.75 3 2
1 104 403 FINANCE 10,823.82 5 1 1 6
1 104 421 POLICE 45,782.89 17 5
1 104 431 STREET 9,944.32 4 2
1 104 471 RECREATION 1,956.57 1 1 1
1 105 461 WATER 10,401.01 5 2 1
1 141 421 POLICE 3,220.94 1
1 141 471 RECREATION LEADER 1,857.74 1 1
TOTAL 93,681.74 37 7 1 16
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

PAYROLL........S BI-WEEKLY RUN-01/15/2026 12.31.11 PAGE 6 RECAP BY DEPT CHECKS/STUBS/MANUAL/CANC'D PR311R-V14.25 Paymate PERIOD 2 DATING 12/29/2025- 1/11/2026 CHECK DATE 1/16/2026

EMPLOYER FUND HOME WORKED WORKED

CODE CODE TOTALS TOTALS DIR DEP

GRAND TOTALS

NEGOTIABLE CHECKS COUNTS
9,811.87 *EMPLOYEE CHECKS 7

63.69 *VENDOR CHECKS 1

0.00 *BANK CHECKS 0
9,875.56 **TOTAL NEGOTIABLE CHECKS 8

OTHER CHECKS

0.00 *MANUAL CHECKS 0

0.00 *CANCELLED CHECKS 0
9,875.56 ***GRAND TOTAL

NON-NEGOTIABLE CHECKS
83,869.87 *DIRECT DEPOSIT STUBS 41
721.98 *VENDOR DIR DEP STUBS 3
84,591.85 **TOTAL NON-NEGOTIABLE CHECKS 44

NEGOTIABLE CHECKS/NON-NEGOTIABLE CHECKS
9,811.87 *EMPLOYEE CHECKS 7

63.69 *VENDOR CHECKS 1

0.00 *BANK CHECKS 0
83,869.87 *DIRECT DEPOSIT STUBS 41
721.98 *VENDOR DIR DEP STUBS 3
94,467.41 ***TOTAL NEGOTIABLE & NON-NEGOT 52

0.00 *OTHER CHECKS 0
94,467.41 ***TOTAL NEG, NON-NEG, OTHER CHECKS
TOTAL SEQ 1 FEMALES 16
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

Agenda Item Staff Report
Meeting Date:

January 27, 2026
Wording for Agenda:

Approval of a Facility Use Request, Street Closure, and a Special Event Fee Waiver in the Amount of $171.00 from the Exeter Chamber of Commerce for the 2026 Weekly Farmer’s Market beginning March 4, 2026.

Submitting Department:

Public Works
Contact Name:

Marie Arroyo, Senior Administrative Assistant
Staff recommends the City Council approve of a facility use request, street closure, no parking and a Special Event fee waiver in the amount of $171.00 from Exeter Chamber of Commerce for the weekly Farmer’s Market.

The Exeter Chamber of Commerce is requesting continued support for the 2026 Farmer’s Market which is scheduled to kick off March 4, 2026, and operate each Wednesday in 2026, weather permitting.

The original request for the Farmer’s Market was approved by the City Council on March 26, 2024. Following the inaugural season and subsequent operational experience, event organizers and downtown merchants collaborated to refine the street closure layout, with modifications approved by the City Council on February 25, 2025.

Based on public safety considerations, vendor spacing requirements, and feedback from downtown businesses, the Chamber is requesting minor adjustments to the previously approved street closure configuration. The proposed layout includes No Parking on E Street from Palm Street to 130 N. E Street (Bell Craft Brewery), with the street then closing from that point to Pine Street while keeping the intersection open. E Street would also be closed from For action by:
☒City Council
Regular Session:
☒Consent Calendar
☐Regular Item
☐Public Hearing
Review:

City Administrator
(Initials Required)
__J.R.____
Agenda Item Number: H.4.

Department Recommendation:

Background/Summary:

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

Pine Street to the public parking lot adjacent to the Mural Gallery between the hours of 4:00 p.m. and 9:00 p.m.

This configuration allows Pine Street to remain open to traffic, provides designated vendor parking on the north end of E Street, and ensures appropriate separation between craft vendors and hot food vendors, including food trucks, in compliance with Tulare County Health Department requirements. Farm food, cottage food vendors, and entertainment would continue to be located on the south end of E Street and within Mixter Park.

The Weekly Farmer’s Market has proven to be a successful community event that brings consistent foot traffic and economic activity to downtown Exeter. Event organizers work closely with downtown merchants each year to ensure vendors offer noncompetitive products, supporting local businesses while enhancing the overall vibrancy of the downtown area.

Conditions of Approval:

Approval of the event is subject to the following conditions:

1. City of Exeter will post all required street closure notifications, open and close streets at designated times.

2. Exeter Police Department will provide public safety.

3. City of Exeter will provide extended hours of the public bathrooms located behind City Hall.

4. Insurance: The event organizer must provide a Certificate of Liability Insurance naming the City of Exeter as an additional insured with the required limits prior to the event.

5. Amplified Sound: Amplified sound is allowed consist with approved permit

6. Applicant will submit approved signature page prior to event.

7. Alcohol Regulations: This is an alcohol-free event

8. Event organizers are responsible for post event clean-up and debris removal.

9. Event organizers are responsible for managing all vendor licenses and required food handling permits.

The total estimated permit fee associated with the event is $171.00, as outlined below:
• Special Event Permit: $171.00
If approved, the city will forgo this revenue.

The City Council last approved related items for this event on March 26, 2024, and February 25, 2025.
• Facility Use Application
• Approved Amplified Sound Request
Fiscal Impact:

Prior City Council Actions:

Attachments:

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

• Street Closure Application
• Fee Waiver Request
I move to approve a facility use request, street closure, no parking and a Special Event fee waiver in the amount of $171.00 from Exeter Chamber of Commerce for the weekly Farmer’s Market beginning March 4, 2026.

Recommended motion to be made by the City Council:

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of P,X_eter
100 Jf011fi C Street
1£,,(eter, c;I 93221
l'(\0.5_~€)1€-\c¥c~i\<JJ,l
IPft 11559-592-JJ0J 'FIL,# 559-592-3346
Title 5, Chapter 5.48 -
Sound-Amplifying Systems, Meetings, Assemblies, Parades & Processions Application for assemblies and parades on public streets. sidewalks and parks, also the use of sound amplifying equipment. within the City of Exeter. This application must be filed within ten ( l 0) days nor more than sixty (60) days prior to the date of the assembly, parade or meeting.

A copy of this permit must be at the operating premises of the amplifying equipment for which this permit is issued.

Name of Applicant \- , , Vi l ,
Address \( I \"1.·.,,
Phone No. 5!8-553-3lfq0
9 Name of Organization ~:ifW ::fo.~ \~ \:'\Cl.r'(l1. ~ Phone No. SQ.,~~~--- Address \(' . ·, -t • ·' \' • C;:., ~v, • ' . \
Type of Event C'e1-b::ned ::fa.n~:<~ocation of Event ~M i\ r\,;1,½(Yt"lv"l. ',,)·"rtS~ (no0¥C>.\('('\-,O -_,\)p \lt_ \X"''c,>1",~l(,t ec- . . c;.~ l"b, ~ 5'\Va.:I,-., , Date ofEvent{i\"-:.h.:=_ StnrtT1me J .,. , End Tune ,-~ Type of equipment to be used ~~"in~.....;;in.~\\:fi-1.D 1 {l"\\l,~\(Q,_£_jr.5-\roV""1M~ .5 Additional lnfonnat1c>11 ______________________ _
I. ~ , HEREBY AGREE TO ABIDE BY ALL PROVISIONS
SET FORTH [N CITY ORDJNAJ'\ICE 5.48 AND ALL OTHER APPLICABLE ORDJNANCES OF THE CITY OF EXETER.
'---k

1..,,/..' ' . /"' • J:.. -::J-. • I, ,,J ' . '
G c~~~r,PrChief of Police
\ l\lo / 1(>'.'l\o
Date
[ ] Pennit Denied
[ ] Permit Approved
I THI$ OCJTSJOE ~uFIER PERMfT HAS eEEN APPROVED.

HOWEVER. ~•le VilGE YO(J TO REMAIN CONSIDEJU.iE OF THE
GENERAL PEAc.E ANO ORDER OF THE NEIGHBORS If\' THE
AREA. FAILURE TO ABIDE BY THESE REGULAilONS CAN RESULT IN REVOCATION OF THE PERMIT.) January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 20, 2026
Dear City of Exeter,
On behalf of the Exeter Farmers Market, we would like to respectfully request a waiver of the special event permit fee in the amount of $171 for our Farmers Market.

The Exeter Farmers Market is a weekly community-focused event that provides ongoing enrichment for residents and visitors. Each week, the market features community engagement opportunities, children’s activities, or live entertainment, all aimed at fostering a vibrant and welcoming downtown atmosphere. As a free and family-friendly event, the market supports local vendors, encourages community connection, and contributes positively to the overall economic and social vitality of Exeter.

We are truly grateful for the City’s continued support of the Chamber and our efforts to offer inclusive events that benefit the community. A fee waiver would greatly assist us in continuing to provide these weekly activities throughout the season.

Thank you for your consideration. Please feel free to reach out if you need any additional information.

Sincerely,
Heather Ritter
Exeter Chamber of Commerce
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

Agenda Item Staff Report
Meeting Date:

January 27, 2026
Wording for Agenda:

Approval of a Special Event, Facility Use, Intersection Closure, and Traffic Control for a 2-Mile Foot Race on Various City Streets hosted by FYE Events on Saturday, March 7, 2026, between the hours of 6:00 a.m. and 12:00 p.m.

Submitting Department:

Public Works
Contact Name:

Marie Arroyo, Senior Administrative Assistant
Staff recommends that the City Council approve a special event, facility use, intersection closure and traffic control plan for FYE Events to host a 2-mile foot race on various city streets on Saturday March 7, 2026, between the hours of 6:00 a.m. and 12:00 p.m. subject to the terms and conditions provided.

Organizers of the Fall Scarecrow 2.0 race are requesting use of the intersection of Cedar Street and D Street, along with Exeter City Park, as the start and finish location for a 2-mile fun run to be held on Saturday, March 7, 2026.

For several years, 10K and 2-mile races have been held as part of Exeter’s annual Fall Festival.

Event organizers, Forever Young Events (FYE), are responding to participant interest by proposing additional running events throughout the year. This event is proposed as a standalone race and will be limited to a 2-mile distance.

Other than the requested intersection closure, no formal street closures are proposed. All runners will travel with the flow of traffic along designated shoulders, with safety volunteers stationed at key locations along the route to assist with traffic awareness and participant safety.

For action by:
☒City Council
Regular Session:
☒Consent Calendar
☐Regular Item
☐Public Hearing
Review:

City Administrator
(Initials Required)
_J.R.__
Agenda Item Number: H.5.

Department Recommendation:

Background/Summary:

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

Conditions of Approval:

Approval of the event is subject to the following conditions:

1. Insurance: The event organizer must provide a Certificate of Liability Insurance naming the City of Exeter as an additional insured with the required limits prior to the event.

2. Notifications: Event organizers will provide race notice signage along route 24 hours in advance.

3. Amplified Sound: Amplified sound is allowed only between 8:00 a.m. and 10:30 am consistent with the approved sound permit.

4. Alcohol Regulations: This is an alcohol-free event

5. Permits and Fees: Event hosts are responsible for obtaining all required permits for food handling and vendors if applicable.

A Special Event Permit Fee of $171 will be paid by the applicant upon approval.

On October 28, 2025, the City Council approved items related to the 2025 Scarecrow 2.0 event. • Facility Use Application
• Approved Amplified Sound Permit
• 2 Mile Race Route Map
I move to approve a special event, facility use, intersection closure and traffic control plan for FYE Events to host a 2-mile foot race on various city streets on Saturday March 7, 2026, between the hours of 6:00 a.m. and 12:00 p.m. subject to the terms and conditions provided.

Fiscal Impact:

Prior City Council Actions:

Attachments:

Recommended motion to be made by the City Council:

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

Agenda Item Staff Report
Meeting Date:

January 27, 2026
Wording for Agenda:

Approval of Amendment No. 2 to Professional Services
Agreement for Contract Services for the City of Exeter’s Wastewater Treatment Plant and Water Distribution System with Central Cal Waterworks Inc. extending contracted services through June 30, 2026.

Submitting Department:

Public Works
Contact Name:

Zachary Boudreaux, Director of Public Works
Staff recommend that the City Council approve Amendment No. 2 to the Professional Services Agreement for Contract Services for the City of Exeter’s Wastewater Treatment Plant and Water Distribution System with Central Cal Waterworks Inc. extending contracted services again through June 30, 2026, and grant City Administrator authority to execute any documents thereto to continue uninterrupted service for the community.

The City of Exeter contracts with Central Cal Waterworks (CCW) for water and wastewater operation. The existing contract term was from April 1, 2022, to March 31, 2025. Since the expiration of the contract term, CCW has continued to operate on a month-to-month basis, and the existing contract was extended through January 30, 2026 via Amendment No. 1. Due to unexpected delays, staff advises that the contract be extended once more on a month to month basis through the end of the fiscal year until June 30, 2026.

For action by:
☒City Council
Regular Session:
☒Consent Calendar
☐Regular Item
☐Public Hearing
Review:

City Administrator
(Initials Required)
__J.R.___
Agenda Item Number: H.6.

Department Recommendation:

Summary:

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

As the City of Exeter system operator, CCW performs routine sampling and required state reporting of results and system information. The City of Exeter currently doesn’t have staff that have both required state certifications to operate the water and wastewater systems. This temporary contract extension will give staff time to formulate a plan going forward in the new fiscal year.

The City of Exeter pays CCW $17,084.50 per month, paid from the water and sewer funds. This cost would remain the same through June 30, 2026.

On October 24, 2017, the Council authorized the execution of an initial agreement with Central Cal Waterworks, Inc. for Contract Chief Operator services for the City’s Wastewater Treatment Plant and Water Distribution System.

On May 22, 2018, the City Council authorized an amendment to the initial agreement.

On March 22, 2022, the City Council authorized the City Administrator to enter into the current agreement with Central Cal Waterworks, Inc. for Contract Chief Operator services for the City’s Wastewater Treatment Plant and Water Distribution System.

On October 14, 2025, the City Council approved Amendment No. 1 to the agreement, extending the term through January 31, 2026.

Background:

The City of Exeter drinking water and wastewater operations are performed by a contractor, Central Cal Waterworks (CCW). The City of Exeter has contracted with CCW since 2017. The City of Exeter’s water distribution system is classified as a D3 system which requires that someone with a minimum of a Water Distribution Operator 3 (D3) certificate act as the Chief Operator. In 2013, the State Water Resources Control Board re-classified the City’s wastewater treatment plant (WWTP) from a Class II to a Class III. The re-classification changed the minimum operator certification requirement from a Grade II to a Grade III.

Until September of 2014, the City employed an in-house Chief Operator who held the state required certifications for both the WWTP and the Water Distribution System. That operator, who held a D3 certification in water and a Grade II in Wastewater retired prior to the compliance deadline. After the in-house Chief Operator’s retirement, the City hired a private contractor to serve as its contact Chief Operator for both the WWTP and the Water Distribution System. The contractor held all of the required certifications and, as a former City of Exeter employee, was very familiar with the City’s water system and WWTP. After serving as the City’s contract Chief Operator for three years, the contractor resigned in October of 2017.

Fiscal Impact:

Prior City Council Actions:

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

• Professional Services Agreement for Contract Chief Operator Services for the City of Exeter’s Wastewater Treatment Plant and Water Distribution System – Executed April • Amendment No. 1 to Professional Services Agreement for Contract Chief Operator Services for the City of Exeter’s Wastewater Treatment Plant and Water Distribution System
• Draft Amendment No. 2 to Professional Services Agreement for Contract Chief Operator Services for the City of Exeter’s Wastewater Treatment Plant and Water Distribution System
I move to approve Amendment No. 2 to the Professional Services Agreement for Contract Services for the City of Exeter’s Wastewater Treatment Plant and Water Distribution System with Central Cal waterworks Inc. through June 30, 2026, and grant City Administrator authority to execute any documents thereto.

Attachments:

Recommended motion to be made by the City Council:

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

1 AMENDMENT NO.2 TO
PROFESSIONAL SERVICES AGREEMENT FOR CONTRACT SERVICES FOR THE CITY OF EXETER’S

WASTEWATER TREATEMENT PLANT AND WATER DISTRIBUTION SYSTEM This Amendment is entered into this ____ day of _________, 2026, by and between CENTRAL CAL WATERWORKS, INC. (“CONSULTANT”) and THE CITY OF EXETER (“CITY”), amending the Professional Services Agreement entered into on April 1, 2022.

NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows:

1. Revised Term. Paragraph II. of the Professional Services Agreement is hereby revised and amended to extend the expiration date of the Service Agreement to June 30, 2026.

2. Joint Preparation. This Amendment is deemed to have been prepared jointly by the Parties. Any uncertainty or ambiguity regarding the provisions of this Amendment shall not be interpreted against any Party as a drafter of such document, but shall be resolved by application of all other principles of law regarding interpretation of contracts.

3. Controlling Document; No Other Amendment. In the event of any conflict between the terms of this Amendment and the Professional Services Agreement, the terms of this Amendment shall control. Except as amended by this Amendment, all terms of the Professional Services Agreement shall remain in full force and effect.

2. Counterparts. This Amendment may be signed by the Parties in different counterparts and the signature pages combined to create one document binding on both Parties.

IN WITNESS WHEREOF, the Parties hereto have executed this Amendment as of the day and year first above written.

CITY OF EXETER
By: ________________________________
Name: ______________________________
Title: _______________________________
CENTRAL CAL WATERWORKS INC.

By: ________________________________
Name: ______________________________
Title: _______________________________
Approved as to Form:
_________________________________
City Attorney
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

Agenda Item Staff Report
Meeting Date:

January 27, 2026
Wording for Agenda:

Quarterly Update of the Internal Review for City of Exeter Landscape and Lighting Maintenance Assessment Districts (LLMADs).

Submitting Department:

Finance
Contact Name:

Eekhong Franco, Finance Director
Background/Summary:

In July 2025, staff began an internal review of the Landscape and Lighting Maintenance Assessment Districts as requested by the City Council. City Staff set up general ledger accounts to track revenue and expenditure data for each district. Further, fund balances were set up to carry each district’s fund balance forward to the following fiscal year.

This project was approached in two ways. First, revenue review. Direct Charge Reports from Tulare County were downloaded. The County does not maintain revenue by district, so each year had to be sorted by district and summarized as the County reports the assessments received by parcel number. Staff were able to download direct charge schedules for years ending June 30, 2020, through June 30, 2025. Revenue received and revenue assessed are not the same. The County removes their charges for service from the tax payment to the City.

During those years, the City posted the total received to the L&L Fund. Now, staff will have to allocate the County assessment for services to the districts as the reports from the County show the gross amount not the net amount paid.

Second, expenditure review. Expenditures have always been summarized by district in Excel.

Usually, it only covers ten months as the engineer needs the numbers to prepare the engineer For action by:
☒City Council
Regular Session:
☒Consent Calendar
☐Regular Item
☐Public Hearing
Review:

City Administrator
(Initials Required)
__J.R.___
Agenda Item Number: H.7.

Department Recommendation:

Staff recommend that the City Council receive a quarterly update of the Landscape and Lighting Maintenance Assessment Districts internal review as requested at the July 22, 2025, City Council meeting.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

reports. For this project, staff used these annual schedules to review charges and obtain balances. All the expenditures for the years ending, June 30, 2021, through June 30, 2025, were traced to actual invoices paid. There were a few charges that were missing invoices in that case the original number was left as it was contemporaneously entered. The months that were estimated were changed to reflect actual. The totals obtained by this process were compared to the general ledger and reconciled.

Staff summarized expenditures and revenues by district for the years ending June 30, 2021, through June 30, 2025. During this review, staff determined that not all expenditure invoices were available. Some invoices may have been temporarily removed for audits or special projects and subsequently misfiled. In addition, expenditures reflected in the Engineer’s Reports may differ slightly from the City’s general ledger because the Engineer’s Reports include estimated incidental costs as part of annual engineering expenses that are not always reflected as actual payments in the general ledger.

During the review Staff found that fund balance differences exist between the general ledger and the Engineer’s Reports. The primary factors contributing to these differences include: (1) the Engineer’s Reports reflecting estimated expenditures for the months of April, May, and June, as actual costs are not yet available at the time the reports are prepared; and (2) the Engineer’s Reports assuming 100 percent collection of assessments, whereas in practice, a portion of assessments remain unpaid each year, along with related parcel-specific fees. Staff will continue with the review process and inform the City Council of the findings and recommendations after the review is completed.

None is associated with this action.

On July 22, 2025, the City Council requested staff to begin an internal review of the LLMADs.

On October 14, 2025, Staff provided the first update of the internal review for Landscape and Lighting Maintenance Assessment Districts.

N/A
No action needed to be made by the City Council. This is an informational item only.

Fiscal Impact:

Prior City Council Actions:

Attachments:

Recommended motion to be made by the City Council:

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

Agenda Item Staff Report
Meeting Date:

January 27, 2025
Wording for Agenda:

Consider Adoption of Resolution No. 2026-03, A Resolution of the City Council of the City of Exeter, Approving Guidelines for the Owner-Occupied Housing Rehabilitation Program and Firsttime Homebuyer Program.

Submitting Department:

Finance
Contact Name:

Eekhong Franco, Finance Director
Staff recommend that City Council adopt Resolution No. 2026-03, approving the City’s FirstTime Homebuyer (FTHB) and Owner-Occupied Rehabilitation (OOR) Program Guidelines as presented and approved by the California Department of Housing and Community Development (HCD)
To meet HOME Investment Partnerships Program (HOME) readiness requirements, the City must have Council-approved program guidelines for both the FTHB and OOR programs.

Guideline templates are provided by California Department of Housing and Community Development (HCD), with limited flexibility for jurisdictions to specify underwriting and loan terms as permitted under per State/Federal regulations. The guidelines are reviewed and approved by HCD prior to adoption by the City’s governing body.

The Owner-Occupied Rehabilitation (OOR) Program provides funding to eligible owneroccupied households with incomes at or below 80% of Area Median Income (AMI) (Page 23 Attachment C of the Program Guidelines) to address deficiencies within their homes. Assisted units must be clear of all code violations, and all major components of the unit must have a useful life of at least five years upon completion of work. All rehabilitation work must be completed by a licensed contractor and meet applicable building code standards. Units are eligible for reconstruction when the cost to repair the unit exceeds the cost to construct a new unit in its place. Reconstructed units must be replaced by a like-unit, additions of bedrooms or bathrooms are not allowed unless justified due to overcrowding. Assistance shall not exceed For action by:
☒City Council
Regular Session:
☐Consent Calendar
☒Regular Item
☐Public Hearing
Review:

City Administrator
(Initials Required)
__J.R.__
Agenda Item Number: I.1.

Department Recommendation:

Background and Summary:

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

the HOME maximum per-unit subsidy limit as established by HUD. Properties’ afterrehabilitation value may not exceed the maximum value limit set by HUD annually. Financial assistance is provided as deferred payment, zero-interest loans with a 30-year term, due and payable upon sale or transfer of title.

The First-Time Homebuyer (FTHB) program provides secondary financing to first-time homebuyers, with household incomes at or below 80% of AMI, for downpayment assistance, as well as closing costs and gap financing as needed. Assistance shall not exceed the HOME maximum per-unit subsidy limit as established by HUD. Assistance is provided as deferred payment, zero-interest loans with a term of 45 years and become due and payable upon sale or transfer of title. The amount of assistance provided is based on household size/income, housing and debt ratios, maximum funding the borrower qualifies for with a primary lender, and the purchase price of the unit. Homes purchased may not exceed the maximum purchase price limits established by HUD annually.

In March 2022, the City submitted a HOME funding application to HCD for FTHB and OOR programs. In July 2022, HCD awarded the City two (2) HOME grants totaling $700,000, including $150,000 for FTHB and $550,000 for OOR. The HCD OOR Standard Agreement was executed in May 2025, and the FTHB Standard Agreement was executed in October 2025.

To satisfy the HOME General Set-Up Conditions required before the programs can be implemented, the City’s FTHB and OOR Program Guidelines were submitted to HCD in November 2025 for final review and approval. Approval of the General Set-Up Conditions, including both sets of program guidelines, was issued by HCD on December 16, 2025.

An executed Subrecipient Agreement between the City of Exeter and the programs’ administrator, Self-Help Enterprises, is currently in place for the term of the grants.

There is no fiscal impact to the City’s General Fund. All grant administration and implementation activities will be covered by the HOME grant awards.

On March 22, 2022, the City Council approved an initial version of the program guidelines submitted as a part of the HOME funding application. HCD subsequently required several rounds of revisions prior to issuing final approval.
• First-Time Homebuyer Program Guidelines
• Owner-Occupied Rehabilitation Program Guidelines
• HOME Homeownership Value Limits for the Tulare County • Resolution No. 2022-08
• Resolution No. 2026-03
Fiscal Impact:

Prior City Council Actions:

Attachments:

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

I move to adopt Resolution No. 2026-03, A Resolution of the City Council of the City of Exeter, Approving Guidelines for the Owner-Occupied Housing Rehabilitation Program and First-time Homebuyer Program.

Recommended motion to be made by the City Council:

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

HCD Version 12.2024
City of Exeter

HOME Investment Partnerships Program
(HOME)
First-Time Homebuyer
Program Guidelines
Serving the City of Exeter
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 2

FIRST-TIME HOMEBUYER PROGRAM GUIDELINES
Table of Contents

1.0. GENERAL

1.1. PROGRAM OUTREACH AND MARKETING

1.2. APPLICATION PROCESS AND SELECTION

1.3. THE HOME PURCHASE PROCESS

1.4. HOMEBUYER COSTS

1.5. HOMEBUYER EDUCATION

1.6. CONFLICT OF INTEREST REQUIREMENTS

1.7. NON-DISCRIMINATION REQUIREMENTS

2.0. APPLICANT QUALIFICATIONS

2.1. CURRENT INCOME LIMITS

2.2. INCOME QUALIFICATION CRITERIA

2.3. DEFINITION OF AN ELIGIBLE HOMEBUYER

3.0. HOUSING UNIT ELIGIBILITY

3.1. LOCATION AND CHARACTERISTICS

3.2. CONDITIONS

3.3 ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE

3.4. PROPER NOTIFICATION AND DISCLOSURES

4.0. PURCHASE PRICE LIMITS

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

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

7.0. PROGRAM LOAN REPAYMENT

7.1. PAYMENTS ARE VOLUNTARY

7.2. RECEIVING LOAN REPAYMENTS

7.3. DUE UPON SALE OR TRANSFER

7.4. LOAN SERVICING POLICIES AND PROCEDURES

7.5. LOAN MONITORING PROCEDURES

8.0. PROGRAM LOAN UNDERWRITING AND APPROVAL

8.1. COMPLETION OF UNDERWRITING AND APPROVAL OF PROGRAM LOAN

8.2. PRIMARY AND PROGRAM LOAN DOCUMENT SIGNING

8.3. ESCROW PROCEDURES

9.0. SUBORDINATE FINANCING

10.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES

10.1. DEFINITION OF EXCEPTION

10.2. PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES

11.0. DISPUTE RESOLUTION AND APPEALS PROCEDURE
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 3

TABLE OF CONTENTS (CONTINUED)

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

PURCHASE OFFER
ATTACHMENT G: INSTRUCTIONS TO HOMEBUYER
ATTACHMENT H: LEAD-BASED PAINT NOTICE OF PRESUMPTION AND HAZARD REDUCTION FORM
ATTACHMENT I: HOMEBUYER PROGRAM LEAD COMPLIANCE DOCUMENT CHECKLIST January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 4

CITY OF EXETER

HOME PROGRAM FIRST-TIME HOMEBUYER PROGRAM GUIDELINES

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

1.1. PROGRAM OUTREACH AND MARKETING
All outreach efforts will be done in accordance with state and federal fair lending regulations to ensure nondiscriminatory treatment, outreach, and access to the Program. No person shall, on the grounds of race, color, ancestry, national origin, citizenship, immigration status, primary language, religion, disability (mental or physical), sex and gender, sexual orientation, gender identity, gender expression, genetic information, marital status, familial status (families with children under 18 or people who are pregnant), source of income, military or veteran status, or age be excluded, denied benefits, or subjected to discrimination under the Program. The Sponsor will ensure that all persons, including those qualified individuals with disabilities, have access to the Program and will take steps to ensure effective communication with and marketing to applicants, residents, and members of the public with disabilities.

A. The Fair Housing Lender and Accessibility logos will be placed on all outreach materials.

Affirmative marketing efforts will be based upon a comparison (census data will be used) of the Program’s eligible area compared to the demographic characteristics of the population served by the Program. This includes tracking separately all applications, including subsets for those which result in denial of assistance or withdrawal, and for those which result in assistance), and an explanation and analysis of any underserved segments of the population. This information is used to show that protected classes (listed above) are not being intentionally or unintentionally excluded from the Program. Flyers or other outreach materials, in English and any other languages that are the primary languages of a significant portion of the area’s residents, in accordance with Sponsor’s Limited English Proficiency (LEP) Plan, or equivalent, will be widely distributed in the Program-eligible area and will be provided to any local social service agencies. The Program may sponsor homebuyer seminars to help educate homebuyers about the homebuying process and future responsibilities.

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

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 5 C. The following statement will be included in all outreach and marketing materials: Section 504 of the Rehabilitation Act of 1973 prohibits the exclusion of an otherwise qualified individual, solely by reason of disability, from participation under any program receiving Federal funds.

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

1.2. APPLICATION PROCESS AND SELECTION
A. Interested households are provided with a Program Brochure, the Instructions to Homebuyer (Attachment G), and a Pre-Application. They are also directed to the Program Operator’s HUD-approved Homebuyer Counseling and Education Program. Once the household completes and submits the Pre-Application, they are placed on a waiting list.

The waitlist is updated regularly to ensure accuracy. Households may be removed from the list under the following circumstances:
• They have successfully completed the program and purchased a home. • They fail to meet eligibility requirements during further review. • They request to be removed from the list.
• They do not respond after three communication attempts (telephone, email, mail) when given a 10-day timeframe to respond for each attempt.

The waitlist is reviewed and updated periodically, and households are contacted to confirm their continued interest and eligibility.

B. Once funds are available and the interested household’s name comes to the top of the waiting list, via phone we will go over the pre-application’s information and either a preliminary eligibility or withdrawal letter will be sent to potential household. The potential homebuyer is advised to interview and compare lenders to start the prequalification process for a primary loan. Potential homebuyers are advised that funds will be available on a first-come, first-served basis upon receipt of a complete application package and pre-qualification letter from the interested household’s primary lender.

C. The Program Operator will provide the submission form/lender cover letter and application, income and assets form, to the potential homebuyer’s primary lender for completion and signatures. In addition to these documents, the primary lender must submit a complete application package and pre-qualification letter to the Program Operator on behalf of the applicant. Complete applications are processed on a first-come, first-served basis. Applications are deemed complete only if all information is completed the application is signed, dated, along with primary lender’s pre-qualification information. Incomplete applications cannot be processed and are not deemed complete.

If the Program Operator encounters material discrepancies and/or misrepresentations, and/or there is income, asset, household composition, or other important questions that cannot be resolved, the Sponsor reserves the right to deny assistance to the household. In this case, the applicant may re-apply after six months, as stated in a written assistance denial letter.

D. Upon eligibility confirmation, the Program Operator will send both the potential homebuyer and primary lender the following documents: pre-qualification letter, condition list, Program Brochure, Attachment (G) Instructions to Homebuyer, January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 6 Attachment (E) Seller’s Lead-Based Paint Disclosure and the EPA Booklet (Protect Your Family from Lead in Your Home) and (F) Notice to Seller.

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

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

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

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

OTHER HOUSEHOLD DEBT SERVICE
Car Payment $ 150
Credit Card Payment_ 50
Total Other Debt $ 200
A $865 per month loan payment equates to borrowing $143,000 at 5.88% for a 30-year term.

SUBSIDY CALCULATION
FOR A FAMILY OF FOUR EARNING $3,388 PER MONTH
Purchase Price of Property $ 280,000
Less Primary loan amount 143,000
Less down payment of 1% 2,800

Equals “GAP” $ 134,200
Plus estimated allowable settlement charges 8,400
Equals Total Subsidy $ 142,600
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 7 B. The housing unit selection process will be conducted by the homebuyers. Prior to making an offer to purchase an eligible housing unit (see Section 3.0), homebuyer shall provide seller with a disclosure containing the following provisions (see Attachment F for Disclosure to Seller form):
1) Homebuyer has no power of eminent domain and, therefore, will not acquire the property if negotiations fail to result in an amicable agreement. 2) Homebuyer’s offer is an estimate of the fair market value of the housing unit, to be finally determined by a state-licensed appraiser.
3) The housing unit will be subject to inspection. In accordance with 24 CFR section

92.251(c), the housing unit must be decent, safe, sanitary, and in good repair. The standards must provide that the housing meets all applicable State and local housing quality standards and code requirements and the housing does not contain the specific deficiencies established by HUD based on the applicable standards in 24 CFR section 5.703 and published in the Federal Register for HOME assisted projects and units;
4) All housing units built prior to January 1, 1978, will require a lead paint disclosure to be signed by both the homebuyer and Seller (Attachment E); 5) Since the sale is voluntary, seller is not eligible for relocation payments or other relocation assistance;
6) Seller understands that the housing unit must be either: currently owner-occupied, newly constructed, bought by the current tenant, or vacant for three months prior to submission of the purchase offer.
7) If the seller is not provided with a statement of the above six provisions prior to or with the purchase offer, the seller may withdraw from the agreement after this information is provided.

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

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

E. Program Operator, where Program Operator is not the Sponsor, submits recommendation to the Sponsor for approval or denial, including the reasons for the recommendation.

Sponsor determines Applicant’s approval or denial and instructs Program Operator to notify Applicant. Program Operator provides written notification to Applicant of approval or denial with reason and, if denied, a copy of the Program’s appeal procedures.

See Section 11 of these Program Guidelines.

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

G. At the time of escrow closing, the Sponsor shall be named as an additional loss payee on fire, flood (if required), and extended coverage insurance for the length of the loan and in January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 8 an amount sufficient to cover all encumbrances or full replacement cost of the housing unit. A policy of Title Insurance naming the Sponsor as insured is also required.

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

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

C. Sponsor will provide a subsidy that is no greater than the applicable HOME Maximum Per-Unit Subsidy Limit for the State of California. The subsidy will reduce the amount of the primary lender’s loan so that the payments of principal, interest, taxes, insurance, and mortgage insurance and HOA dues, if any, are within approximately 25 to 35% of the household’s gross monthly household income. In addition, the borrower’s total debt must be within the ranges in Section 5.0. of these Program Guidelines.

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

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

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

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

Housing Counseling defined: Housing counseling is independent, expert advice customized to the need of the consumer to address the consumer's housing barriers and to help achieve their housing goals and must include the following processes: Intake; financial and housing affordability analysis; an action plan, and a reasonable effort to have follow-up communication with the client when possible. The content and process of housing counseling must meet the standards outlined in 24 CFR Part 214, which include:
• addressing unique financial circumstances or housing issues; • focusing on ways of overcoming specific obstacles to achieving a housing goal such as repairing credit;
• addressing a rental dispute, purchasing a home, locating cash for a down payment, and being informed of fair housing and fair lending requirements of the Fair Housing Act; January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 9 • finding units accessible to persons with disabilities; • avoiding foreclosure;
• resolving a financial crisis; and
• the creation of an action plan.

1.6. CONFLICT OF INTEREST REQUIREMENTS
The applicable Conflict of Interest requirements of 24 CFR section 92.356 of the HOME Final Rule shall be followed for HOME assistance, as follows:
(a) Conflicts prohibited. No persons described in paragraph (b) of this section who exercises or has exercised any functions or responsibilities with respect to activities assisted with HOME funds or who are in a position to participate in a decision making process or gain inside information with regard to these activities, may obtain a financial interest or benefit from a HOME-assisted activity, or have a financial interest in any contract, subcontract or agreement with respect to the HOME-assisted activity, or the proceeds from such activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter. Immediate family ties include (whether by blood, marriage, or adoption) the spouse, parent (including stepparent), child (including stepchild), brother, sister (including a stepbrother or stepsister), grandparent, grandchild, and in-laws of a covered person. (b) Persons covered. The conflict-of-interest provisions of paragraph (a) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the participating jurisdiction, State recipient, or subrecipient receiving HOME funds. (c) Exceptions: Threshold requirements. Upon the written request of the participating jurisdiction to HCD, HUD may grant an exception to the provisions of paragraph (a) of this section on a case-by-case basis when it determines that the exception will serve to further the purposes of the HOME Investment Partnerships Program and the effective and efficient administration of the participating jurisdiction's program or project. See 24 CFR sections

92.356(d)(1-6) for details on the documentation needed in order to submit an exception request to HUD.

1.7. NON-DISCRIMINATION REQUIREMENTS
The Program will be implemented in ways consistent with the Sponsor’s commitment to nondiscrimination. No person shall be excluded from participation in, denied the benefit of, or be subject to discrimination under any program or activity funded in whole or in part with State or federal funds on the basis of race, color, ancestry, national origin, citizenship, immigration status, primary language, religion, disability (mental or physical), sex and gender, sexual orientation, gender identity, gender expression, genetic information, marital status, familial status (families with children under 18 or people who are pregnant), source of income, military or veteran status, or age.

2.0 APPLICANT QUALIFICATIONS

2.1. CURRENT INCOME LIMITS FOR THE AREA, BY HOUSEHOLD SIZE All applicants must certify that they meet the household income eligibility requirements for the applicable HCD program(s) and have their household income documented. The income limits in place at the time of loan approval will apply when determining applicant income eligibility.

All applicants must have incomes at or below 80% of the County’s area median income (AMI), adjusted for household size, as published by HCD.
(See Attachment C for current income limits).

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 10 Household: Means one or more persons who will occupy a housing unit. Unborn children: count in family size determination.

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

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

A. HOUSEHOLD INCOME DEFINITION:

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

See Attachment A: Income Inclusions and Exclusions
B. ASSETS:

There is no asset limitation for participation in the Program. Income, or imputed income from assets, however, is recognized as part of annual income under the 24 CFR Part 5 regulations (included as Attachments A and B). An asset is a cash or non-cash item that can be converted to cash. The value of necessary items such as furniture and automobiles are not included. (Note: it is the income earned – e.g., interest on a savings account – or in some cases imputed income, not the asset value, which is counted in annual income.) An asset’s cash value is the market value, less reasonable expenses required to convert the asset to cash, including, for example, penalties or fees for converting financial holdings, and costs for selling real property. The cash value (rather than the market value) of an item is counted as an asset.

See Attachment B: Asset Inclusions and Exclusions
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 11

2.3. DEFINITION OF AN ELIGIBLE HOMEBUYER
Program Operators are required to use the following definition of an eligible homebuyer, which is a “first-time homebuyer” from 8201(m) Title 25 California Code of Regulations:
“First-time homebuyer” means an individual or individuals, or an individual and his or her spouse who have not owned a home during the three-year period before the purchase of a home with subsidy assistance, except that the following individual or individuals may not be excluded from consideration as a first-time homebuyer under this definition:

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

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

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

3.0. HOUSING UNIT ELIGIBILITY

3.1. LOCATION AND CHARACTERISTICS
A. Housing units to be purchased must be located within the eligible area. The eligible area is described as follows: “Within the City of Exeter.”
B. Housing unit types eligible for the Homebuyer Program are new or previously-owned single-family residences; condominiums; or manufactured homes in mobile home parks, in common-interest developments or on a single-family lot and placed on a permanent foundation system. HOME does not allow manufactured homes unless on a permanent foundation system.

C. All housing units must be in compliance with property standards in Section 1.3.B.3 of these Program Guidelines. The buyers will obtain a Certified Home Inspection, or a Sponsor Representative or Program Operator will inspect the unit for any health/safety and code compliance violations, and any deficiencies must be corrected and documented prior to the close of escrow.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 12 D. Housing units located within a 100-year flood zone will be required to provide proof of flood insurance with an endorsement naming the City of Exeter as loss payee in order to close escrow.

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

3.2. CONDITIONS
A. Construction Inspection and Determining Need for Repairs.

Once the participating homebuyer has executed a purchase agreement for a housing unit and, prior to a commitment of Program funds, the following steps must be taken for the housing unit to be eligible for purchase under the Program:
1) When the Sponsor’s Program utilizes Federal funds and if the housing unit was constructed prior to 1978 then the lead-based paint requirements of Section 3.2.C will apply.

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

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

Upon completion of all work required by the Program Operator, Sponsor, appraiser, pest inspector and/or certified housing inspector, a final inspection will be conducted prior to close of escrow. The inspector will sign off on all required construction work assuring that each housing unit receiving Program assistance complies with Section 1.3.B.3. requirements of these Program Guidelines that the unit is decent, safe, sanitary, and in good repair, and that it meets all applicable State and local housing quality standards and code requirements and does not contain the specific deficiencies established by HUD based on the applicable standards in 24 CFR section 5.703 and published in the Federal Register for HOME-assisted projects and units, at the time of purchase and prior to occupancy.
2) Only new construction and homes built within the previous 12 months and not previously occupied are not subject to a home inspection.

B. Per 24 CFR section 92.214(a)(6), no additional HOME assistance, including rehabilitation funds, may be provided after the 1-year anniversary of the filing of the Project Completion Report through the end of the HOME Affordability Period. The HOME Affordability Period is as follows (amount does not include Activity Delivery and Administration Costs paid to the State Recipient by HCD):

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 13 Amount of HOME Assistance Period of Affordability in Years Under $15,000 5 years
$15,000 to $40,000 10 years
Over $40,000 15 years
During the HOME Affordability Period, the home must remain occupied by the borrower or an eligible heir, as their primary residence, or else all HOME assistance becomes due and payable.

C. Lead-Based Paint Hazards: All housing units built prior to 1978 for which HOME funding is anticipated are subject to the requirements of this section 3.2.C. Such homes must undergo a visual assessment by a person who has taken HUD’s online Visual Assessment course. Deteriorated paint must be stabilized using work safe methods.

Clearance must be obtained after paint stabilization by a DHS-certified LBP Risk Assessor/Inspector. HOME general administrative and activity delivery funds may be used to pay for lead-based paint visual assessments, and if lead mitigation and clearance costs are incurred, these programs may incorporate the costs into the calculation of Program assistance.

D. The following requirements must be met:
1) Notification: a) Prior to homebuyer’s obligation to purchase a home built prior to 1978, the Buyer will be given the most recent copy of and asked to read the EPA pamphlet “Protect Your Family From Lead in Your Home”. (EPA 747-K-94-001).

A signed receipt of the pamphlet will be kept in the Sponsor’s homebuyer file; b) A notice to residents is required following a risk assessment/inspection using form DHS 8552, which is provided by the DHS-certified Risk Assessor/Inspector; c) a notice to residents is required following lead-based paint mitigation work using Visual Assessment and Lead-based Paint Notice of Presumption and Hazard Reduction form, LBP – 1 (Attachment H).
2) Disclosure: Prior to the homebuyer’s obligation to purchase a home built prior to 1978, the HUD disclosure (Attachment E), “Seller’s Lead-based Paint Disclosure” notice must be provided by the seller to the homebuyer. 3) Inspections: The Inspector shall conduct a “Visual Assessment” of all the dwelling unit’s painted surfaces to identify deteriorated paint. All deteriorated paint will be stabilized in accordance with CFR 35.1330 (a) and (b); and a Clearance shall be made in accordance with CFR 35.1340.
4) Mitigation: If stabilization is required, the contractor performing the mitigation work must use appropriately-trained workers. Prior to the contractor starting mitigation work, the Program Operator shall obtain copies of the contractor’s and workers’ appropriate proof of LBP training, as applicable to the job, to assure that only qualified contractors and workers are allowed to perform the mitigation.

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

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 14 F. Environmental Review: Program Operator conducts an Environmental Review in accordance with 24 CFR Part 58, and Sponsor’s NEPA Certifying Officer signs the appropriate form before any commitment of funds are made to the homebuyer. An acquisition must not include rehabilitation immediately after transfer of title, and requires completion of a HUD CENST form from the Environmental Review - HUD Exchange webpage.

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

A. Uniform Relocation Assistance (URA) and Real Property Acquisition Policies Act of 1970
The federal URA and Real Property Acquisition Policies Act of 1970, as amended, contains requirements for carrying out real property acquisition or the displacement of a person, regardless of income status, for a project or program for which HUD financial assistance (including HOME) is provided. Requirements governing real property acquisition are described in HUD’s CPD Handbook 1378.0. The implementing regulations, 49 CFR Part 24, require developers and owners to take certain steps regarding tenants of housing to be acquired, rehabilitated, or demolished, including tenants who will not be relocated even temporarily.

B. Section104(d) of the Housing and Community Development Act of 1974 Section 104(d) requires each contractor (CHDO or State Recipient), as a condition of receiving assistance under HOME, to certify that it is following a residential antidisplacement plan and relocation assistance plan. Section 104(d) also requires relocation benefits to be provided to low-income persons who are physically displaced or economically displaced as the result of a HOME-assisted project, and requires the replacement of low-income housing, which is demolished or converted. The implementing regulations for Section 104(d) can be found in 24 CFR Part 42, subpart (C).

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

B. All owners who wish to sell their housing units must receive an acquisition notice (Attachment F) prior to submission of the homebuyer’s original offer. This notice will be included in the contract and must be signed by all owners on title. The disclosure must contain the items listed in 1.3.B. (required for federally-funded programs).

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 15

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

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

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

A. QUALIFYING RATIOS
The front-end (housing) debt-to-income ratio shall be between 25% and 35% and is the percentage of a borrower’s gross monthly income (before deductions) that would cover the cost of the loan principal and interest payment, property taxes, property insurance, and mortgage insurance and HOA dues, if any.

The back-end (total) debt-to-income ratio shall be between 28% and 42% and is the percentage of a borrower’s gross monthly income that would cover the cost of housing as described in the paragraph above, plus any other monthly debt payments like auto or personal loans, credit card debt, and student debt, as well as child support and alimony payments.

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

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

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

The applicable Freddie Mac rate should be from the date the primary mortgage rate was locked, or else the date of HOME loan approval. No temporary interest rate buy-downs are permitted.

The loan file must contain this documentation for Department monitoring purposes.

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

D. IMPOUND ACCOUNT
All households will be required to have impound accounts for the payment of taxes and insurance to ensure they remain current.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 16

6.0. THE PROGRAM LOAN
A. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE
For HOME, the amount of Program assistance to a homebuyer toward purchase of a home shall not exceed the HOME Maximum Per-Unit Subsidy Limits (“Subsidy Limits”) for the State of California. See Attachment C of these Program Guidelines for current Subsidy Limits. Any approved “grant” amount for lead-based paint evaluation and reduction activities or for relocation assistance shall be included in the Subsidy Limits evaluation, as shall Activity Delivery Costs.

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

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

D. RATE AND TERMS FOR PROGRAM LOAN
All Program assistance to individual households shall be made in the form of a deferred payment (of principal and interest) loan (DPL).

The Program loan’s term shall be for as long as the primary loan, plus 15 years. If the primary mortgage is a Rural Development USDA Direct 502 loan, the Programs loan’s term shall be 48 or 53 years.

The Program loan’s interest rate shall be 0% simple interest.

All Program loan payments shall be deferred because the borrowers will have their repayment ability fully utilized under the primary loan. Loan principal shall not be forgiven, and the loan period cannot be extended, except for loans that are resubordinated when a rate and term refinance is approved, per Attachment D.

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

7.0. PROGRAM LOAN REPAYMENT (HOME RECAPTURE TERMS)
Recapture of Entire Direct Subsidy
The Program Lender recaptures the entire amount of the direct HOME subsidy provided to the homebuyer, plus any interest due according to the terms of the HOME Promissory Note, before the homebuyer receives a return. The recapture amount is limited to the net proceeds available from the sale or foreclosure.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 17 In cases where there is appreciation, (see definition of Appreciation), the homebuyer would retain any net proceeds exceeding the direct HOME assistance plus interest due that is recaptured.

In some cases, such as in declining housing markets, net proceeds available at the time of sale may be insufficient to recapture the entire direct HOME subsidy plus interest due provided to the homebuyer. Since the HOME Final Rule limits recapture to available net proceeds, the Program Lender can recapture only what is available from net proceeds. In a scenario where recapture provisions state that the entire direct HOME subsidy plus interest will be recaptured, and there are insufficient net proceeds available at sale, the Program Lender is not required to repay to the Department, and the Department is not required to pay back to HUD the difference between the total direct HOME subsidy and the amount available for recapture from net proceeds.

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

7.1. PAYMENTS ARE VOLUNTARY
Borrowers may begin making voluntary payments at any time, without penalty. Payments will be applied to principal, thus reducing accrual of simple interest.

7.2. RECEIVING LOAN PAYMENTS
A. Voluntary Program loan payments, and loan payoffs, shall be made to:

City of Exeter
137 N. F. Street
Exeter, CA 93221
B. The Sponsor shall be the receiver of loan payments or recaptured funds and will maintain a financial record-keeping system to record payments and file statements on payment status. Payments shall be deposited and accounted for in the Sponsor’s Program Income Account, as required by the HOME program. The Program lender will accept loan payments from borrowers prepaying deferred loans, and from borrowers making payments in full upon sale or transfer of the property. All loan payments are payable to the Sponsor. The Sponsor may, at its discretion, enter into an agreement with a third party to collect and distribute payments and/or complete all loan servicing aspects of the Program.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 18

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

Notwithstanding the foregoing, if the owner of the property dies, even after the HOME Affordability Period expires, an heir may assume the HOME loan at the same rate and terms, if the heir’s household meets each of the following requirements:
• does not exceed the current HOME income limits; and
• will immediately occupy the home as their principal residence.

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

The loan will be in default if the borrower fails to maintain required fire or flood insurance or fails to pay property taxes. See Attachment D on loan defaults for further information on property restrictions.

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

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

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

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

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 19 B. Creditworthiness
Qualifying ratios are only a rough guideline in determining a potential borrower’s creditworthiness. Many factors such as credit history, amount of down payment, and size of loan will influence the decision of the primary lender to approve or disapprove a particular loan. The borrower’s credit history will be reviewed by the Sponsor and documentation of such maintained in the loan file. The Sponsor may elect to obtain a credit report or rely on a current copy obtained by the primary lender. The Sponsor must use the information on the credit report for each adult borrower for its calculations of front-end and back-end debt-to-income ratios.

C. Documents from Primary Lender
After initial review of the qualified homebuyer's application packet, the Program Operator will request any additional documents needed. Documents may be e-mailed or faxed. Based on receipt and review of the final documents, the Program Operator will complete, sign, and date an income certification (using the most-recent HCD program’s guidance on income calculation and determination), and homebuyer certification (review of credit report and income taxes). Documentation of affordability shall then be verified, and a subsidy amount will be determined by the Program Operator.

D. Disclosure of Program and Loan Information to Homebuyers The Program will inform the borrower of the results of the income determination process, including the permissible range of primary mortgage payments and the maximum purchase price possible. Information on the Program’s application will be documented with third-party verifications and/or documents in the file. For example, the sales contact will provide the final purchase price and outline how much of the closing costs are to be paid by the seller, etc. The appraisal, termite, and title reports provide information to substantiate the information in the sales contract and guide the construction inspection.

The Program loan application provides current debt and housing information and will be documented by the credit report and income/asset verifications. The primary lender’s approval letter and estimated closing cost statement should reflect all the information in the loan package and show any contingencies of loan funding. Reviewing the primary lender’s loan underwriting documentation will provide basic information about the qualification of the applicant and substantiate the affordability provided by the Program loan. By reviewing and cross-checking all the primary lender information, the final Program loan amount approved will fall within the affordability parameters of the Program.

8.1. COMPLETION OF UNDERWRITING AND APPROVAL OF PROGRAM LOAN Once the loan approval package has been completed, the Program Operator will submit it to the Sponsor for approval. Sponsor will review the request and may approve it with or without conditions. Upon approval, a final closing date for escrow is set, and Program funds are provided to the homebuyer.

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

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 20

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

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

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

10.1. DEFINITION OF EXCEPTION
Any case to which a standard policy or procedure, as stated in the guidelines, does not apply or an applicant treated differently from others of the same class would be an exception.

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

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

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

11.0. DISPUTE RESOLUTION AND APPEALS PROCEDURE
Any applicant denied assistance from the Program has the right to appeal. Complaints concerning the Program should be made to the Program Operator first. If unresolved in this manner, the complaint or appeal must be made in writing and filed with the Sponsor. The Sponsor will then schedule a meeting with the Loan Review Committee. Their written response will be made within thirty (30) working days. If the applicant is not satisfied with the Committee's decision, a request for an appeal may be filed with the Sponsor’s governing body.

Final appeal must be filed in writing with HCD within one year after denial.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 21

ATTACHMENT A
Income Inclusions and Exclusions
The Program Operator shall access the current federal income determination regulations online at https://www.ecfr.gov/current/title-24/subtitle-A/part-5/subpart-F/subject-groupECFR174c6349abd095d/section-5.609,regarding income inclusions and exclusions.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 22

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

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 23

ATTACHMENT C
HOME HOMEOWNERSHIP VALUE LIMITS FOR TULARECOUNTY*
(Limits effective 9/1/2024)

EXISTING

CONSTRUCTION

NEW CONSTRUCTION
(less than 12 months old)
$371,000 $392,000
[Note from HOME to remove: if you have exception limits approved by HOME, modify this table as needed and indicate from/through date of the exception]

HOME MAXIMUM PER-UNIT SUBSIDY LIMITS FOR CALIFORNIA
(Limits effective 2/13/2024)
O-BDR 1-BDR 2-BDR 3-BDR 4-BDR
$181,488 $208,049 $252,994 $327,293 $359,263
HOME INCOME LIMITS FOR TULARE COUNTY*
(Limits effective 6/1/2025)
Number of Persons in Household
1 2 3 4 5 6 7 8
80%
of
AMI
$52,600 $60,100 $67,600 $75,100 $81,150 $87,150 $93,150 $99,150 *Sponsor will insert these limits for the county in which the Program is located and will update the limits annually as HCD provides new information. The link to the official, HCDmaintained Value, Subsidy, and income limits is: State and Federal Income, Rent, and Loan/Value Limits | California Department of Housing and Community Development (for HOME limits, choose “CDBG, HOME and NHTF/HHC Article I - Income, Value, Subsidy and Rent Limits”).

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 24

ATTACHMENT D

LOAN SERVICING POLICIES AND PROCEDURES

FOR CITY OF EXETER

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

1. Loan Repayments:

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

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

City of Exeter
137 N. F Street
Exeter, Ca. 93221

2. Payment of Property Taxes and Insurance:

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

If a property is located in a 100-year floodplain, the Borrower will be required to obtain flood insurance.

A certificate of insurance for both flood and standard property insurance, with an endorsement naming the City of Exeter as “Lender” and listing them as the lender loss payee, will be required at the close of escrow. The Lender will verify the insurance coverage annually.

Property taxes must be kept current during the term of the loan. The Lender requires Borrower to have impound accounts set up with their first mortgagee wherein they pay their taxes and insurance as part of their monthly mortgage payment.

3. Required Request for Notice of Default:

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

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 25

4. Annual Occupancy Restrictions and Certifications:

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

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

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

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

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

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

6. Requests for Subordinations:

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

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

Also, the loan must:

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

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

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

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

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

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 26

7. Process for Loan Foreclosure:

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

When a senior lienholder starts a foreclosure process and the Lender is notified via a Request for Notice of Default, the Lender, who is the junior lienholder, may cancel the foreclosure proceedings by "reinstating" the senior lienholder. The reinstatement amount or payoff amount must be obtained by contacting the senior lienholder. This amount will include all delinquent payments, late charges, and fees to date. Lender must confer with Borrower to determine if, upon paying the senior lienholder current, the Borrower can provide future payments. If this is the case, then the Lender may cure the foreclosure and add the costs to the balance of the loan with a Notice of Additional Advance on the existing note. HOME funds may not be used for this purpose.

If the Lender determines, based on information on the reinstatement amount and status of Borrower, that bringing the loan current will not preserve the loan, then staff must determine if it is cost effective to protect their position by paying off the senior lienholder in total and restructuring the debt such that the unit is made affordable to the Borrower. If the Lender does not have sufficient funds to pay the senior lienholder in full, then they may choose to cure the senior lienholder and foreclose on the property themselves. If there is sufficient value in the property, then the Lender can afford to pay for the foreclosure process, pay off the senior lienholder, and retain some or all of its investment.

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

Lender as Senior Lienholder
When the Lender is first position as a senior lienholder, active collection efforts will begin on any loan that is 31 or more days in arrears. Attempts will be made to assist the homeowner in bringing and keeping the loan current. These attempts will be conveyed in an increasingly urgent manner until loan payments have reached 90 days in arrears, at which time the Lender may consider foreclosure. Lender’s staff will consider the following factors before initiating foreclosure:
1) Can the loan be cured, and can the rates and terms be adjusted to allow for affordable payments such that foreclosure is not necessary?
2) Can the Borrower refinance with a private lender and pay off the Lender? 3) Can the Borrower sell the property and pay off the Lender? 4) Does the balance warrant foreclosure? (If the balance is under $5,000, the expense to foreclose may not be worth pursuing.)
5) Will the sales price of home "as is" cover the principal balance owing, necessary advances, (maintain fire insurance, maintain or bring current delinquent property taxes, monthly yard January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 27 maintenance, periodic inspections of property to prevent vandalism, etc.) foreclosure, and marketing costs?
If the balance is substantial and all the above factors have been considered, the Lender may opt to initiate foreclosure. The Borrower must receive, by certified mail, a thirty-day notification of foreclosure initiation. This notification must include the exact amount of funds to be remitted to the Lender to prevent foreclosure (such as, funds to bring a delinquent BMIR current or pay off a DPL).

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

When the process is completed, and the property has "reverted to the beneficiary" at the foreclosure sale, the Lender could sell the home themselves under a homebuyer program or use it for an affordable rental property managed by a local housing authority or use it for transitional housing facility or other eligible use. The Lender could contract with a local real estate broker to list and sell the home and use those funds for program income eligible uses.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 28

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

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

Purchaser’s Acknowledgment (initial)
(c)____Purchaser has received copies of all information listed above. (d)____Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. (e)____Purchaser has received a 10-day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards; or Agent’s Acknowledgment (initial)
(f)____ Agent has informed the seller of the seller’s obligations under 42 U.S.C. 4852d and is aware of his/her responsibility to ensure compliance.

Certification of Accuracy
The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate. —————————— —————————— ————————— —————————
Seller Date Seller Date
—————————— —————————— ————————— —————————
Purchaser Date Purchaser Date
—————————— —————————— ————————— —————————
Agent Date Agent Date
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 29

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

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

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

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

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

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

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

Sincerely,
____________________________________
Title
_________________________________ _____________________ Buyer Date
_________________________________ _____________________ Buyer Date
Form continues on next page with Seller’s Acknowledgment January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 30 Disclosure to Seller with Voluntary, Arm's Length Purchase Offer (Page 2) Acknowledgement
As the Seller I/we understand that will inspect the property for health and safety deficiencies. I/we also understand that public funds may be involved in this transaction and, as such, if the property was built before 1978, a lead-based paint disclosure must be signed by both the buyer and seller, and that a Visual Assessment will be conducted to determine the presence of deteriorated paint.

As the Seller, I/we understand that the property must meet one of the following conditions at the time of submitting the purchase offer: it must be currently owner-occupied, vacant for at least three months, newly constructed (never occupied), or being purchased by the current renter. I/we hereby certify that the property is:
☐ Vacant at least 3 months; ☐ Owner-occupied; ☐ New; or ☐ Being Purchased by its Occupant I/we hereby certify that I have read and understand this “Declaration” and:
☐ a copy of said Notice was given to me prior to the offer to purchase.

If received after presentation of the purchase offer, I/We choose:
☐ to withdraw, or ☐ not to withdraw, from the Purchase Agreement. __________________________________ _______________________ Seller Date
__________________________________ _______________________ Seller Date
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 31

ATTACHMENT G

CITY OF EXETER

INSTRUCTIONS TO HOMEBUYER

1. Homeownership can be a complicated process for first time homebuyers, to help navigate you and prepare you for homeownership, we recommend you first contact the Program Operator’s Homebuyer Counseling and Education (Gateway) Department at 559-651-1000.

2. You should then contact the Program Operator’s First-Time Homebuyer Loan Processor at 559- 802-1640 to verify funding availability and program information. If funds are available, you can move directly into the workload. If funds are not available you will be sent a pre-application to complete, sign and return to then be added to a waiting list for future funding.

3. Once funds are available and your name comes to the top of the waiting list, you will then be able to select a primary lender (Mortgage Company, Bank or Credit Union) of your choice to determine financing eligibility. Upon successful prequalification with a primary lender, your primary lender will submit a complete loan application package to Program Operator for review.

This package must be submitted along with a completed Submission Form/Lender Cover Letter and Application, provided by the Program Operator via the Program Operator’s website. Items to be included are proof of income, credit report and household size.

4. During the financing and Program eligibility review by Program Operator, household size, income, and Sponsor loan amount are determined. Prior to issuance of the prequalification letter the family, the following must occur:
a. Application package must be reviewed and signed by Program Operator b. Application package must be reviewed and signed by Sponsor Upon completion by all parties, Program Operator will issue a prequalification letter to the applicant and the primary lender on behalf of the Sponsor. Program Operator will contact or meet with qualified applicant to provide information relative to Program requirements and the lending process. In addition, Program Operator will issue a condition list to both parties requesting final and additional income and asset documentation, including verification of employment and all income sources.

5. Applicant works with Licensed Real Estate broker to find an eligible property. Properties are subject to the following requirements:
a. Properties must be located within the Sponsor’s eligible area (Program Operator will verify)
b. Properties must meet maximum sales price limits, as applicable c. Properties must be Vacant at least 3 months; ☐ Owner-occupied; ☐ New; or ☐ Being Purchased by its Occupant
Primary lender will submit accepted purchase agreement to Program Operator for review.

6. Applicant will work with primary lender to provide Program Operator all terms on the conditions list. The items include, but are not limited to:
a. Income documentation (3 months paystubs, 3 years tax returns and W-2’s, child support, verification of employment, verification of rent, etc.) b. Credit Report
c. Asset documents (6 months bank statements, 401K, etc.) January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 32 d. Property information (appraisal with photos, preliminary title report, home inspection, termite report and clearance, etc.)
e. Real Estate Sales Contract (contingent upon receiving Program loan approval) f. Residential loan application
g. Lead Base Paint Disclosure/Disclosure statement

7. A certified housing inspector, or a Sponsor representative will document health & safety and code compliance as well as conduct Lead-Based Paint Inspections. Seller must correct all deficiencies prior to the close of escrow.

8. Upon receipt of all conditions, Program Operator will prepare participant file for final loan approval with Sponsor. The primary lender should request the date of loan approval one week prior to the date of anticipated loan signing. At loan approval, Program Operator will present the application to Sponsor for review. Following loan approval, Program Operator will give loan documents to Sponsor for signatures. Loan documents are then forwarded to escrow company to coordinate loan signing.

9. Signed documents are returned to Program Operator for review. Upon review and confirmation of all conditions of final funding, Program Operator will wire funds to escrow.

10. Once loan is funded and recorded, escrow company provides a copy of all documents to Program Operator. Program Operator then closes out the loan file.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 33

ATTACHMENT H

LEAD-BASED PAINT

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

Visual Assessment Date: Report Date:

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

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

Date of Presumption Notice:

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

Section 4: Notice of Lead-Based Paint Hazard Reduction Activity. Fill out Sections 1, 4, 5, and 6.

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

Date of Hazard Reduction Notice:

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

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

Attachment C: Activity locations and types.

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

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

Section 6: Contact Information Organization:

Contact Name: Contact Signature:

Date: Address: Phone:

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter HOME Program First-Time Homebuyer Program Guidelines Page 34

ATTACHMENT I
Homebuyer Program Lead Compliance Document Checklist
The following documents should be in each Homebuyer unit file to document compliance with the lead requirements:

Document Name Purpose ✔
Lead Safe Housing Rule Screening Sheet Documents exemptions Physical inspection form (HQS or equivalent) Documents visual assessment results
Seller Certification Seller certifies that
paint was stabilized by
qualified workers and
that safe work practices
were followed during
paint stabilization
Clearance Report and Clearance Review Worksheet Documents that unit passed clearance
Lead-Based Paint and/or Lead-Based Paint Hazards
Disclosure Form DOC_12345.PDF (hud.gov)
Documents that buyer
received disclosure and
pamphlet.

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

This was taken from the HUD Website at:
http://portal.hud.gov/hudportal/documents/huddoc?id=20264_leadcompliance.doc January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

CITY of EXETER HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
CITY of EXETER
HOME Program First-Time Homebuyer Written Agreement
Approved by Department: 8/21/2025
NOTICE TO HOMEBUYER:

This Agreement explains the terms of the purchase assistance you are receiving through the HOME Investment Partnerships Program (HOME). This Agreement is separately enforceable from the Note and Deed of Trust for the Term in Section 2, unless you sell and repay the balance specified in Section 7. Read each paragraph carefully and ask questions regarding any sections you do not fully understand before you sign. This agreement will be enforced by loan documents as set forth in Section 1 below. You should be sure that you thoroughly understand these documents before you sign them.

DEFINITIONS
DEED OF TRUST: A Deed of Trust is a legal document used in real estate transactions to secure a loan to purchase or refinance a property. If the borrower, in this case the FirstTime HOMEBUYER (FTHB), defaults on the loan or fails to comply with the terms of the Deed of Trust and this written AGREEMENT, foreclosure and sale of the property to repay the debt can be initiated by the LENDER and trustee.

HOMEBUYER: For the First-Time HOMEBUYER Program, the HOMEBUYER is a person(s) who meets the definition of a First-Time HOMEBUYER under Section 8201(m) of the State of California HOME Program Regulations, or successor policy, and who receives financial assistance in the form of downpayment assistance through the HOME program.

LENDER: Lender refers to the City or County operating the FTHB Program as a State Recipient of the Department of Housing and Community Development HOME Program and has received an award of HOME funds to operate a First-Time HOMEBUYER Program or to undertake a First-Time HOMEBUYER Project.

NET PROCEEDS: The sales price minus primary loan repayment (other than HOME funds) and any closing costs. Net proceed calculations are used to determine the total amount of funds available for recapture of HOME funds at the time of sale.

PRIMARY LENDER: A lender making the first trust deed mortgage to a First-Time HOMEBUYER under the program and to which any HOME FTHB loan will be subordinate.

RECAPTURE: Recaptured funds are HOME funds which are recouped by the LENDER when a housing unit assisted by the HOME program does not comply with the obligations of this AGREEMENT, and/or where the housing unit does not continue to be the principal place of residence of the assisted homebuyer for the full Affordability Period as required by federal statute.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

CITY of EXETER HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
CITY of EXETER
HOME Program First-Time Homebuyer Written Agreement
Approved by Department: 8/21/2025
RIDER: Your first mortgage LENDER may or may not have a Rider as part of your Mortgage. A Rider is a supplemental document that modifies or adds specific terms and conditions to the Deed of Trust. The Rider serves as an addendum to the Deed of Trust, customizing and clarifying the mortgage to accommodate specified needs and requirements of the parties involved, including local requirements of primary mortgage LENDER that are not included in the Deed of Trust. Any Rider to the First-Time Homebuyer Deed of Trust must be approved in advance, in writing by the LENDER, to be valid.

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

THE AGREEMENT:

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

WITNESSETH
WHEREAS:

A. The CITY is a current grantee under the State of California HOME Investment Partnerships Program (“HOME” or “HOME Program”) administered by the United States Department of Housing and Urban Development (“HUD”) through the State of California Department of Housing and Community Development (“Department”) and is authorized by the Department to provide HOMEBUYER assistance in accordance with the Department’s Consolidated Plan; and
B. The HOME regulations at 24 CFR Part 92 govern the CITY’s/COUNTY’s implementation of the HOME Program and are made a part this Agreement; and
C. The CITY has determined that the HOMEBUYER meets the HOME Program eligibility requirements to purchase the dwelling located at January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

CITY of EXETER HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
CITY of EXETER
HOME Program First-Time Homebuyer Written Agreement
Approved by Department: 8/21/2025
PROPERTYADDRESS (the “Property”) at the price of $PURCHSASEPRICE (the “Purchase Price”) and will assume fee simple ownership upon closing.

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

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

The Homebuyer agrees that the HOME Assistance will be used at closing as gap financing to cover closing costs and down payment towards the Purchase Price of the Property. This will reduce the total amount the HOMEBUYER will be required to borrow from a bank, credit union, or other lender in order to purchase the Property. {If signing the agreement prior to closing, the following provision can be used to clarify that the final HOME amount may change slightly.} The amount of HOME Assistance will not be final until the CITY has updated all necessary underwriting and subsidy layering requirements based on final Purchase Price and/or closing costs.

The assistance will be provided in the form of a thirty-year (30) deferred loan. At closing, the Loan will be evidenced by a promissory note executed by the HOMEBUYER in favor of CITY (“Note”) and secured by a deed of trust securing the promissory note to be filed in the official real property records of the county in which the Property is located (“Deed of Trust”). The terms and duration of the Loan are specified in the Note and Deed of Trust, and the Note and Deed of Trust will be released upon repayment of the Loan under the terms set forth therein. The HOMEBUYER may, but is not required to, prepay the Loan, in whole or in part, at any time.

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

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

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

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

CITY of EXETER HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
CITY of EXETER
HOME Program First-Time Homebuyer Written Agreement
Approved by Department: 8/21/2025
SECTION 3. APPRAISED PROPERTY VALUE
The CITY certifies that a certified property appraiser has appraised the property that is the subject of this AGREEMENT at a value of $ENTERAPPRAISED VALUE as evidenced by appraisal dated ENTERDATE.

SECTION 4. ELIGIBLE MODEST HOUSING
The CITY has verified that the purchase price of the housing does not exceed 95 percent (95%) of the median purchase price of homes for the area, as set forth in 24 CFR Part

92.254(a) and as codified in CITY’s HOME Program Guidelines and Resale and Recapture Policy.

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

SECTION 6. AFFORDABILITY PERIOD
The Affordability Period for the Property will begin on the date of recordation of the grant deed and deed of trust (“Completion date”) of the transaction as the date of recordation of the grant deed and deed of trust (“Completion Date”) and shall end five (5)/ten (10)/fifteen (15) years after the Completion Date (the “Affordability Period”). The CITY will provide a formal written notice to the HOMEBUYER of the Completion Date and the resulting expiration date of this Affordability Period and this Agreement. Upon issuance of such notice, this Agreement shall be deemed amended to reflect the expiration date of the Affordability Period.

If the HOMEBUYER sells or transfers ownership of the Property voluntarily or involuntarily, including via foreclosure or deed in lieu of foreclosure, the Affordability Period will end upon the recapture of the full amount of the direct HOME Assistance by the CITY as described in Section 9 below.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

CITY of EXETER HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
CITY of EXETER
HOME Program First-Time Homebuyer Written Agreement
Approved by Department: 8/21/2025
SECTION 7. HOMEBUYER REPRESENTATIONS
By signing this Agreement, the HOMEBUYER attests to the following:
• The HOMEBUYER warrants that all information and documentation provided to the CITY is true and correct. The HOMEBUYER has fully disclosed all income and assets to the CITY and warrants that the HOMEBUYER’s household or financial situation has not changed materially since the application for HOME Assistance was made. The HOMEBUYER acknowledges that any material discrepancies or misstatements may result in the HOMEBUYER’s disqualification from participation in the program and shall be deemed a breach of this Agreement and the Loan, and the HOMEBUYER will be required to repay the entire HOME investment amount. • The HOMEBUYER has completed homeownership counseling as required by the CITY and will complete any post-closing counseling required by the CITY. • The Homebuyer has agreed to purchase a dwelling unit that meets HOME Program requirements, and that the dwelling unit must meet Program property standards prior to purchase.
• The HOMEBUYER understands and agrees to the requirements stated in this Agreement for the Agreement Term.

SECTION 8. HOMEBUYER RESPONSIBILITIES
The Homebuyer agrees to the following to meet the requirements of this assistance:
• The HOMEBUYER will provide at least the following buyer funds required for closing:
$XXXX in their own funds toward the purchase price and/or closing costs. • The HOMEBUYER will occupy the property as the principal residence for the Affordability Period as described in Sections 5 and 6.
• The HOMEBUYER will maintain the property, maintain hazard insurance, and pay all required taxes during the term of this Agreement as described in Section 10. • The HOMEBUYER will provide information as required by the CITY to monitor compliance with Program requirements.
• The HOMEBUYER will comply with the refinancing policy stated in Section 11. • In the event of sale of the property during the Agreement Term, the HOMEBUYER will notify the CITY and comply with Recapture requirements in Section 9.

SECTION 9. RECAPTURE OF DIRECT HOME ASSISTANCE
In compliance with the HOME Rule at 24 CFR 92.254(a)(5), if the HOMEBUYER sells or otherwise voluntarily or involuntarily transfers title to the Property during the Agreement January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

CITY of EXETER HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
CITY of EXETER
HOME Program First-Time Homebuyer Written Agreement
Approved by Department: 8/21/2025
Term, including transfer as a result of foreclosure or deed in lieu of foreclosure, then the outstanding direct HOME Assistance to the Homebuyer will be subject to recapture by the CITY.

The “Recapture Amount” will be determined as follows:

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

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

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

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

Example: A homebuyer receives $10,000 of HOME down
payment assistance to purchase a home. The direct HOME
subsidy to the homebuyer is $10,000, which results in a fiveyear Period of Affordability. If the homebuyer sells the home after three years, the grantee or state would
recapture, assuming that there are sufficient net proceeds, the entire $10,000 direct HOME subsidy plus any interest due according to the terms of the HOME Promissory Note.

The homebuyer would receive any net proceeds in excess of that amount.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

CITY of EXETER HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
CITY of EXETER
HOME Program First-Time Homebuyer Written Agreement
Approved by Department: 8/21/2025
If there are no net proceeds of sale or the net proceeds are insufficient to repay the Recapture Amount, then the entire net proceeds, if any, will be recaptured and retained by CITY to satisfy both this Agreement and the Loan. The term “net proceeds” is defined as the sale price less the balance due on superior secured debt and closing costs incurred by the Homebuyer at sale or transfer. In the event the net proceeds are less than the outstanding Loan balance, the CITY reserves the right to determine whether the sales price is comparable to the sales price in an arms-length transaction for a similar unit and to evaluate the closing costs being charged to the Homebuyer to ensure they are reasonable and customary.

Net proceeds of sale in excess of the outstanding direct HOME Assistance will be retained by the HOMEBUYER.

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

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

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

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

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

SECTION 11. REFINANCING
During the Agreement Term, the HOMEBUYER will notify the CITY of the intent to refinance any loan that is senior to the HOME Deed of Trust. The CITY will approve January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

CITY of EXETER HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
CITY of EXETER
HOME Program First-Time Homebuyer Written Agreement
Approved by Department: 8/21/2025
subordination of the HOME debt to only a new loan in compliance with its then-current refinancing policy.

SECTION 12. CITY RESPONSIBILITIES
As a State Recipient of the HOME Participating Jurisdiction Program, the CITY is ultimately responsible to the State of California for compliance with all HOME requirements, including the ongoing enforcement of this Agreement regarding principal residency and recapture.
• The CITY has determined the HOMEBUYER to be eligible according to the HOME Program’s income limits and other eligibility requirements and will review any changes to eligibility at time of closing.
• The CITY has determined the property to be eligible under the HOME Program’s requirements, including Program purchase price limits, Maximum Per-Unit Subsidy Limits, and property standards.
• The CITY has completed the environmental review required by 24 CFR Part 58 and determined that the property and assistance meet federal requirements. • The CITY has determined the amount of HOMEBUYER’s assistance to be reasonable and in compliance with Program requirements and its underwriting policy and may adjust the assistance based on final price, costs, and underwriting. • The CITY will provide any HOME funds required at closing. • The CITY will record the Deed of Trust and retain this Agreement and the Note for the Agreement Term.

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

SECTION 13. DEFAULT AND ENFORCEMENT
In the event the HOMEBUYER violates any terms of this Agreement or any other agreement between the HOMEBUYER and the CITY, the CITY shall issue a notice of violation to the HOMEBUYER. Upon receipt of such a notice, the HOMEBUYER agrees to remedy the violation within 30 days or, in the case of violations requiring longer cure periods, the CITY may allow for a period of up to 90 days to correct the violation. In such cases, the HOMEBUYER must take action to begin corrections within 30 days of the date January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

CITY of EXETER HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
CITY of EXETER
HOME Program First-Time Homebuyer Written Agreement
Approved by Department: 8/21/2025
of the CITY’s notice of violation. Upon the HOMEBUYER’s failure to correct the violation within the allotted time, the CITY may take additional corrective action including suing for specific performance, declaring a default in the Loan and initiating foreclosure proceedings, and seeking any other available legal remedies.

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

SECTION 14. ONGOING ANNUAL RECERTIFICATION REQUIREMENTS CITY is responsible for ensuring that First-Time HOMEBUYERS comply with the requirements of this AGREEMENT and as codified in the loan documents. This includes the requirement that the assisted home be maintained as the principal place of residence by HOMEBUYER for the entirety of the Affordability Period. The Department requires that the CITY performs annual recertification of compliance. The Department monitors the CITY to ensure that these requirements are met. HOMEBUYER acknowledges that annual reviews will be conducted, and that the HOMEBUYER must comply with the CITY’s recertification process and requirements as part of the conditions for receipt of HOME assistance and that failure to do so constitutes a breach of this AGREEMENT.

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

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

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

The paragraph headings contained herein are for convenience in reference to this Agreement and are not intended to define or to limit the scope of any provision of this January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

CITY of EXETER HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
CITY of EXETER
HOME Program First-Time Homebuyer Written Agreement
Approved by Department: 8/21/2025
Agreement. Where appropriate, all personal pronouns used herein, whether used in the masculine, feminine or neutral gender, shall include all other genders and singular nouns used herein shall include the plural and vice versa.
(signature page follows)
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

CITY of EXETER HOME Program
First-Time Homebuyer Written Agreement
(Version 1 dated 8/30/24, effective until revised)
CITY of EXETER
HOME Program First-Time Homebuyer Written Agreement
Approved by Department: 8/21/2025
Executed and effective as of the day and year first above written and for the purposes herein expressed, by the CITY, signing by and through its Authorized Signer, AUTHORIZEDSIGNERNAME, TITLE, and by the HOMEBUYER(s).

DATE: _____________________________
_________________________ __________________________
Print Name of HOMEBUYER #1 Signature of HOMEBUYER #1
_________________________ __________________________
Print Name of HOMEBUYER #2 Signature of HOMEBUYER #2
CITY of EXETER Authorized Signer
Signature: _______________________________________________ Print Name and Title: _______________________________________ All signatures must be acknowledged by a notary.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

DO NOT DESTROY THIS NOTE: When paid, this Note and the Deed of Trust must be surrendered to the Trustee, listed below, with request for reconveyance.

PROMISSORY NOTE SECURED BY DEED OF TRUST
Deferred Payment Loan - Owner Occupant
LOAN HBL#LOAN #; LOAN $
CITY OF EXETER, California, DATE
FOR VALUE RECEIVED BORROWER(S) (hereinafter called “Trustor(s)”, jointly and severally promise(s) to pay to the CITY OF EXETER, the sum of LOAN $. At no time will interest be charged.

The restrictions will automatically terminate if the Title to the mortgaged property is transferred by foreclosure or deed-in-lieu of foreclosure, or if the mortgage is assigned to the Secretary of Housing and Urban Development.

The loan shall be at zero percent interest.

The Program’s loan term shall be PRIMARY LOAN PLUS 15 YEARS. The interest rate shall be 0%. All Program loan payments shall be deferred because the borrowers will have their repayment ability fully utilized under the primary loan. Loan principal shall not be forgiven, unless allowed by statute.

Principal Residence Requirement: During the Affordability Period, barring a sale or transfer of title to the Property which shall be governed by Section 6, Affordability Period of the First-Time Homebuyer Written Agreement, the Trustor shall at all times maintain the Property as their principal residence. Should the Trustor cease to maintain the Property as their principal residence, rent the residence to another party, or convert the Property to a non-residential use, the Trustor will be in breach and subject to the Default and Enforcement provisions under Section 13 of the First-Time Homebuyer Written Agreement.

Transfer of ownership of the property or cessation of residence on PROPERTY, California, shall constitute default, and the entire principal on the date of default will become immediately due and payable. Failure of the Lender to formally declare or act upon such default shall not constitute a waiver. Demand, protest and notice of demand and protest are hereby waived.

The undersigned reserve(s) the right to prepay at any time all or any part of this Note without the payment of penalties or premiums to the Lender. Any and all payments on this Note shall be applied to the principal due on the Note.

The Trustor shall abide by all covenants contained in the First-Time Homebuyer Written Agreement. In the event of any inconsistencies between this Note and the First-Time Homebuyer Written Agreement, the latter shall prevail.

Should suit be commenced to collect payments due under this Note or any portion thereof, the prevailing party may recover reasonable attorney's fees in addition to any other relief allowed by law. This Note is secured by a certain DEED OF TRUST to the TITLE COMPANY, a California Corporation, as TRUSTEE.

IN WITNESS WHEREOF, the Note has been duly executed by the undersigned, as of this date. _______________________________
Trustor – BORROWER Trustor – CO-BORROWER
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

RECORDING REQUESTED BY:

CITY OF EXETER
AND WHEN RECORDED MAIL TO:

SELF-HELP ENTERPRISES
ATTN: HOMEBUYER PROGRAM
P.O. BOX 6520
VISALIA CA 93290

SPACE ABOVE THIS LINE FOR RECORDER USE

THIS DOCUMENT IS RECORDED SOLELY FOR THE PURPOSE OF CITY OF EXETER WITHOUT FEE PURSUANT TO SECTION 6103 OF THE GOVERNMENTAL CODE.

REQUEST FOR NOTICE
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 (or mortgage) recorded 2024, in Book _____, Page _____, (or filed for record with recorder's serial number _________________) of official records of County of , California, executed by BORROWER(S) as trustor (or mortgagor) in which PRIMARY LENDER is named as beneficiary (or mortgagee) and TITLE COMPANY as trustee to be mailed to:

Self-Help Enterprises
P.O. Box 6520
Visalia, CA 93290
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.

CITY OF EXETER
by:___________________________________________
Date CITY OF EXETER SIGNER
=============================================================================== “A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.”

STATE OF CALIFORNIA

COUNTY OF TULARE
On _______ , 2024 before me, ,Notary Public, personally appeared BORROWER(S), who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

FOR NOTARY STAMP OR SEAL
WITNESS my hand and official seal.
____________________________________
Notary Public,
RECORDING REQUESTED BY:

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

CITY OF EXETER
AND WHEN RECORDED MAIL TO:

SELF-HELP ENTERPRISES
ATTN: HOMEBUYER PROGRAM
P.O. BOX 6520
VISALIA CA 93290

SPACE ABOVE THIS LINE FOR RECORDER

THIS DOCUMENT IS RECORDED SOLELY FOR THE PURPOSE OF THE CITY OF EXETER WITHOUT FEE PURSUANT TO SECTION 6103 OF THE GOVERNMENTAL CODE.

SHORT FORM DEED OF TRUST
Adopting and including by reference certain provisions of a deed of trust recorded in the counties named herein.

THIS DEED OF TRUST, made on DATE, between BORROWER(S) as TRUSTOR, whose address is PROPERTY, CA, California; and TITLE COMPANY, California, as TRUSTEE and the CITY OF EXETER as BENEFICIARY, this Deed of Trust being junior and subordinate to a new Deed of Trust in favor of PRIMARY LENDER in the amount of $. and any deed of trust in the name of or held by the California Housing Finance Agency, its successors and assigns, which was recorded concurrently herewith; WITNESSETH: That Trustor grants, transfers or assigns to Trustee in Trust, that property in the County of TULARE, State of California, described as:

LEGAL DESCRIPTION
The restrictions will automatically terminate if the Title to the mortgaged property is transferred by foreclosure or deed-in-lieu of foreclosure, or if the mortgage is assigned to the Secretary of Housing and Urban Development.

If the Trustor shall sell, convey or alienate said property or any part thereof, or any interest therein, or shall be divested of this title or any interest therein in any manner or way, whether voluntarily or involuntarily, without the written consent of the Beneficiary being first had and obtained, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby, immediately due and payable.

FOR THE PURPOSE of securing performance and payment of the sum of LOAN $ and of the monies that may be paid or advanced by or may otherwise be owing to the Trustee or the Beneficiary under this instrument, and also such additional monies as may be hereafter borrowed by the Trustor, or any of them, from the Beneficiary, and also the payment of all other monies and indebtedness now owing or to become owing, from the Trustor, or any of them, to the Beneficiary, according to the terms of the Promissory Notes, payable to Beneficiary on order and made by Trustor.

Said Promissory Note and First-Time Homebuyer Written Agreement, of even date herewith made by Trustor, delineated the Terms and Conditions of this Loan requiring security of this document. Demand is subject to change of title by any means.

Privilege is reserved to prepay at any time all or any part of the debt secured hereby without the payment of penalties or premiums. By executing and delivering this Deed of Trust, and the Note secured hereby, the parties agree that all provisions of that Promissory Note between BORROWER(S) and the CITY OF EXETER, dated DATE and the First-Time Homebuyer Written Agreement between BORROWER(S) as borrower(s) and the CITY OF EXETER, as Lender, dated DATE, and that portion of the Fictitious Deed of Trust hereinafter referred to commencing with paragraph 1 and ending with paragraph 31 thereof are hereby incorporated herein and made an integral part hereof for all purposes the same as if set forth herein at length. The Fictitious Deed of Trust above January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

referred to was recorded as follows:

COUNTY DATE BOOK PAGE
Kings December 6, 1983 1284 68
Madera January 13, 1984 1738 538
Merced December 2, 1985 2514 359
Stanislaus July 8, 1986 127 reel 1256 image
Tulare September 19, 1983 4111 913
Kern July 23, 1992 6704 867
Fresno March 17, 1997 Instrument No. 97035016
Signature of Trustor(s)

BORROWER CO-BORROWER
==================================================
“A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.”

STATE OF CALIFORNIA

COUNTY OF TULARE
On , 2024 before me, _________________, Notary Public, personally appeared BORROWER(S) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal. FOR NOTARY STAMP OR SEAL

Notary Public

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

FEDERAL TRUTH – IN – LENDING DISCLOSURE STATEMENT

DEFERRED PAYMENT LOAN
Lender: CITY OF EXETER Loan #LOAN#
Borrower: BORROWER(S)
Property Address: PROPERTY ADDRESS, CA
Annual Fixed Rate – The Program’s loan term, shall be 45 years. The interest rate shall be 0%. All Program loan payments shall be deferred because the borrowers will have their repayment ability fully utilized under the primary loan. Loan principal shall not be forgiven, unless allowed by statute.

Finance Charge: The dollar amount the credit will cost you. $0.00 Amount Financed: The amount of credit provided to you on $0.00 your behalf as of loan closing.

Total of Financing: The amount you will have paid after you $0.00 have remitted the lump sum payment.

Security Interest: You are giving a security interest in PROPERTY ADDRESS, CA.

Prepayment: If you pay off your loan early, you will not have to pay a penalty.

Insurance: Credit life, accident, health or loss of income insurance is not required in connection with this loan. This loan transaction requires fire and flood (if applicable) insurance.

If you fail to maintain the required insurance, such failure shall be considered a condition of default, whereby Lender may require immediate and full repayment of the loan upon notice.

Assumption: Loans are assumable, subject to the assumability of the primary loan, if the household assuming the loan meets Program eligibility requirements and the assumption is approved by Self-Help Enterprises.

Default: In the event of default, the recording of a “Notice of Default” with the County Recorder shall constitute a foreclosure upon this property. Borrower will be responsible for attorney’s fees and all costs of collection in the event of default.

There will be no filing or recording fees for any documents in connection with your loan. “The undersigned hereby acknowledges receiving and reading a completed copy of this disclosure along with copies of the documents provided. The delivery and signing of this disclosure do not constitute an obligation on the part of the lender to make or the borrower(s) to accept the loan as identified.” _________________________________ ____________________________________ BORROWER Date CO-BORROWER Date

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

CITY OF EXETER
Self-Help Enterprises

FAIR LENDING NOTICE
To: All applicants for financial assistance for the purchase, construction, rehabilitation, improvement or refinancing of one-to-four family residences
It is unlawful, under the Housing Financial Discrimination Act of 1977, for a public agency to consider any of the following in determining whether or not, or under what terms and conditions to provide or arrange for financial assistance:

1. Neighborhood characteristics (such as the average age of the homes or the income level in the neighborhood), except to a limited extent necessary to avoid an unsafe and unsound business practice.

2. Race, sex, color, religion, marital status, national origin, or ancestry.

It is also unlawful to consider, in appraising a residence, the racial, ethnic, or religious compositions of a particular neighborhood or whether or not such a composition is undergoing change or is expected to undergo change.

If you wish to file a complaint, or if you have questions about your rights, contact:

Comptroller of the Currency
Administrator of National Banks
Fourteenth National Bank Region
Consumer Complaint Department
Stewart Street Tower, Suite 2101
One Market Plaza
San Francisco, California 94105
I (we) have received a copy of this notice.

BORROWER Date

CO-BORROWER Date
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 1 CITY OF EXETER

SINGLE-FAMILY HOUSING

REHABILITATION

ASSISTANCE PROGRAMS
(HOME, CDBG, CalHome)

PROGRAM DESIGN AND PROCESS

HCD Version November 2023
CalHome Approved (date)
CDBG Approved (date)
HOME Approved (12/12/2025)
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 2 CITY OF EXETER

HOUSING REHABILITATION

PROGRAM GUIDELINES

TABLE OF CONTENTS

1.0. GENERAL

1.1. PROGRAM OUTREACH AND MARKETING

1.2. APPLICATION PROCESS AND SELECTION

1.3. LOAN PROCESS

1.4. CONFLICT OF INTEREST REQUIREMENTS

2.0. APPLICANT QUALIFICATIONS

2.1. INCOME LIMITS

2.2. INCOME QUALIFICATION CRITERIA

2.3. HOMEOWNER ELIGIBILITY & RESIDENCY REQUIREMENTS

3.0. PROPERTY ELIGIBLITY

3.1. CONDITIONS

3.2. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE

3.3. NOTIFICATIONS AND DISCLOSURES

3.4. ENVIRONMENTAL REVIEW

4.0. THE PROGRAM LOAN

4.1. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE

4.2. AFFORDABILITY PARAMETERS FOR HOMEOWNERS

4.3. RATES AND TERMS

4.4. GRANTS

4.5. APPRAISAL

4.6. INSURANCE

5.0. PROGRAM LOAN SERVICING AND MAINTENANCE

5.1. PAYMENTS ARE VOLUNTARY

5.2. RECEIVING LOAN REPAYMENTS

5.3. LOAN SERVICING POLICIES AND PROCEDURES

5.4. LOAN MONITORING PROCEDURES

5.5. DEFAULT AND FORECLOSURE

5.6. SUBORDINATIONS

6.0. CONSTRUCTION

6.1. STANDARDS

6.2. ELIGIBLE CONSTRUCTION COSTS

6.3. ELIGIBLE PROJECT COSTS

6.4. REPAIR CALLBACKS

7.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES

7.1. AMENDMENTS

7.2. EXCEPTIONS

8.0. DISPUTE RESOLUTION AND APPEALS PROCEDURES

8.1. PROGRAM COMPLAINT AND APPEAL PROCEDURE

8.2. GRIEVANCES BETWEEN PARTICIPANTS AND CONSTRUCTION

CONTRACTOR
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 3 CITY OF EXETER

HOUSING REHABILITATION

PROGRAM GUIDELINES

ATTACHMENTS TABLE OF CONTENTS
ATTACHMENT A: 24 CFR PART 5 ANNUAL INCOME INCLUSIONS AND EXCLUSIONS – FOR CDBG & HOME
ATTACHMENT A-1: TITLE 25 SECTION 6914 GROSS INCOME INCLUSIONS – FOR

CALHOME
ATTACHMENT B: ANNUAL INCOME NET FAMILY ASSET INCLUSIONS AND EXCLUSIONS – FOR CDBG & HOME
ATTACHMENT B-1: TITLE 25 SECTION 6914 GROSS INCOME EXCLUSIONS – FOR

CALHOME
ATTACHMENT C: HOME PROGRAM HOMEOWNERSHIP VALUE LIMITS; HOME PER-UNIT SUBSIDY LIMITS; CURRENT INCOME LIMITS;

BEDROOM & BATHROOM ADDITION STANDARDS
ATTACHMENT D: MARKETING PLAN
ATTACHMENT E: RESIDENTIAL ANTIDISPLACEMENT AND RELOCATION

ASSISTANCE PLAN
ATTACHMENT F: LOAN SERVICING POLICIES AND PROCEDURES
ATTACHMENT G: FORECLOSURE POLICY
ATTACHMENT H: CERTIFICATION OF OCCUPANCY
ATTACHMENT I: LEAD-BASED PAINT NOTICE OF PRESUMPTION AND HAZARD

REDUCTION FORM
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 4 CITY OF EXETER

HOUSING REHABILITATION

PROGRAM GUIDELINES
Adopted date

1.0. GENERAL
The above-named entity, hereinafter referred to as the “Sponsor”, has entered into a contractual relationship with the California Department of Housing and Community Development (“HCD”) to administer one or more HCD-funded housing rehabilitation programs. The rehabilitation program described herein and hereinafter referred to as the “Program” is designed to provide assistance to eligible homeowners for correction of health and safety items, as well as code violations, located within the Program’s eligible area, as described in Section 3.0. The Program provides this assistance in the form of deferred payment loans used to finance the cost of necessary repairs that will provide the homeowner with a healthy, safe, sanitary and code compliant home, referred to herein as “housing unit”. The Program will be administered by Self-Help Enterprises, hereinafter referred to as the “Program Operator”.

1.1. PROGRAM OUTREACH AND MARKETING
All outreach efforts will be done in accordance with state and federal fair lending regulations to assure nondiscriminatory treatment, outreach and access to the Program. No person shall, on the grounds of age, ancestry, color, creed, physical or mental disability or handicap, marital or familial status, medical condition, national origin, race, religion, gender or sexual orientation, be excluded, denied benefits or subjected to discrimination under the Program. The Sponsor will ensure that all persons, including those qualified individuals with handicaps have access to the Program.

A. The Fair Housing Lender and Accessibility logos will be placed on all outreach materials. Fair housing marketing actions will be based upon a characteristic analysis comparison (census data may be used) of the Program’s eligible area compared to the ethnicity of the population served by the Program (includes, separately, all applications given out and those receiving assistance) and an explanation of any underserved segments of the population. This information is used to show that protected classes (age, gender, ethnicity, race, and disability) are not being excluded from the Program.

A Fair Housing Marketing Plan can be found as Attachment D. Flyers or other outreach materials, in English and any other language that is the primary language of a significant portion of the area residents, will be widely distributed in the Programeligible area and will be provided to any local social service agencies. The Program may sponsor homeownership education classes to help educate homeowners about credit, budgeting, predatory lending, foreclosure prevention and home maintenance, as well as future responsibilities.

B. Section 504 of the Rehabilitation Act of 1973 prohibits the exclusion of an otherwise qualified individual, solely by reason of disability, from participation under any program receiving Federal funds. The Program Sponsor will take appropriate steps to ensure effective communication with disabled housing applicants, residents and January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 5 members of the public.

1.2. APPLICATION PROCESS AND SELECTION
A. Waiting List/Homeowner Contact
The Sponsor will utilize a waiting list. In response to a homeowner’s request, the homeowner is placed on the waiting list. Homeowners are offered the opportunity to qualify for assistance by waiting list priority (a first-come, first served basis).

The Program Operator will contact homeowners by mail and/or by telephone to advise of funding availability. The homeowner has 30 days to complete and return the loan application and supporting documentation. Should a homeowner fail to respond to the initial contact for assistance or to provide any of the required documentation within the 30-day period, the homeowner’s name will be removed from the waiting list. If the homeowner desires assistance at a later time, he/she will be placed on the waiting list at that time.

Should the waiting list be exhausted, the Program will be marketed in accordance with the Sponsor’s Marketing Plan. See Attachment D.

B. Application/Interview
An application packet is provided to the homeowner for completion and submittal to the Program Operator, along with supporting documentation. An interview is scheduled with the applicant. The Program is fully explained; application forms and documentation are reviewed. Verifications are obtained for income, assets, employment, benefits, and mortgage. Title report and appraisals are also obtained.

If the Program Operator encounters material discrepancies and/or misrepresentations, and/or there are income, asset, household composition, or other important questions that can't be resolved, the Sponsor reserves the right to deny assistance to the household. In this case, the applicant may re-apply after six months have elapsed from the time of written assistance denial.

C. Household Selection
Households selected for participation in the Sponsor’s Housing Rehabilitation Program are those determined eligible upon completion of processes described in A. and B. above.

D. Initial Inspection/Work Write-Up/Estimate
Prospective units are inspected by the Program Operator, a certified housing inspector, or a Sponsor representative to determine eligibility and acceptability of properties for participation in the Program.

If the home is a pre-1978 unit, the initial inspection will also include paint testing by a certified Lead-Based Paint (LBP) inspector/assessor or presumption of LBP.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 6 Code deficiencies will be corrected and if presumption is used or lead hazards are found they will be properly treated according to HUD regulations (Section 6.1.E & F) and cleared by a certified LBP inspector/assessor. Note: CalHome-funded projects do not require LBP compliance. CDBG projects shall refer to Chapter 20, Lead-Based Paint Requirements for guidance in the CDBG Grant Management Manual.

Measurements and observations are noted about the property, including special conditions with potential cost consequences (dilapidated outbuildings, absence of curb and gutter when required by code, etc.). A floor plan and site plan, as needed, are drawn for the home and property, including all appurtenances.

Findings are noted on an inspection form, and later used by the Program Operator to prepare the work write-up. Estimated costs are determined by the Program Operator who has years of experience in the building industry, and in reviewing contractor bids and verifying cost with materials suppliers. The homeowner reviews the completed work write-up and cost estimate, and the approved write-up is incorporated into bid documents.

E. Bid Solicitation
A bid walk-through date and time are scheduled. The homeowner may choose to solicit his/her own bids or request that the Program Operator solicit bids on his/her behalf. Invitations to bid are mailed to all eligible contractors selected by the homeowner from the Active Contractor List provided by the Program Operator in efforts to obtain three reasonable bids. Homeowners are required to select a minimum of six contractors from the Active Contractor List and may add to the list as long as the contractor meets the requirements outlined in the Housing Rehabilitation/Reconstruction Program Contractor Guidelines and Information Sheet (see Attachment K). Contractors will be notified via telephone and/or in writing (email, fax, etc.) at least one week prior to each bid tour. Bid results will be provided to participating contractors.

Contractors must be licensed and bonded by the State of California Contractors Licensing Board. Contractors must also provide Program Operator with evidence of Workers’ Compensation Insurance and Comprehensive General Liability and Property Damage Insurance with Combined Single Limits of at least $1,000,000.

Recruitment for eligible contractors is done on an ongoing basis, via local advertising, website notification, and program marketing. It is the goal of the Program Operator to maintain an Active Contractor List of eligible, interested contractors located in the Sponsor’s County. Applications are available for those seeking to participate by calling the Program Operator or visiting the Program Operator’s website. The Program Operator will send notices to contractors on the Active Contractor List annually, which will request each contractor contact the Program Operator to confirm his or her interest in remaining on the Active Contractor List. Contractors who do not respond will be moved to the Inactive Contractor List.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 7 Cost reasonableness is determined by comparing the bids received with the cost estimate prepared by the Program Operator. Bids should be within 10% of the Program Operator’s cost estimate, otherwise an explanation must be provided to the file for any bid selected exceeding 10% of the estimate. The homeowner is encouraged to accept the lowest reasonable bid.

The Program Operator determines eligibility of the contractor by contacting the State Contractors License Board and checking the Federal List of Debarred Contractors. The contractor is also required to provide a self-certification stating that he/she is not on the Federal debarred list. Once determined eligible, the contractor is then notified of provisional award of bid (pending loan approval).

Notices of non-award are mailed to participating contractors.

F. Loan Request/Approval
A report and loan request are prepared on behalf of the homeowner by the Program Operator. The loan request includes the cost of construction, a contingency fund, and other project costs (listed in Section 6.3.). Note: For HOME and CDBG, the project costs listed in Section 6.3 are considered activity delivery costs to be paid by the Sponsor and may not be charged to the homeowner’s loan. A Loan Review Committee meeting is scheduled to hear the loan request. Section 1.3 provides additional information on the loan approval process. Once approved, loan documents are executed and the loan is funded.

G. Pre-Construction Conference
A pre-construction conference is scheduled with homeowner, contractor, and Program Operator. The Program Operator reviews the Owner-Contractor Construction Contract, including the work write-up, start date, pay schedule, and date of completion, with the homeowner and contractor. The construction contract and Notice to Proceed are executed.

H. Start-Up/Field Inspections
The Program Operator monitors date of start-up and performs field inspections on a regular basis. The Program Operator will visit the job site regularly in order to check the scope of work, inspect materials, and to confirm the job is on schedule and within budget. The Program Operator works with the Sponsor’s Building Inspector to ensure the work meets building codes, while not exceeding funding limits.

The Program Operator reviews the work status with the homeowner and with the contractor in order to remedy any developing problems quickly and to ensure that both are satisfied with the construction process. At the completion of each phase, the Program Operator inspects the work and the homeowner authorizes contractor payments.

The Program Operator will refer back to original plans and specifications to verify the work was completed as contracted.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 8 I. Change Orders
Written change orders are required when the homeowner requests any changes in the write-up, such as eliminating an item completely, eliminating one item and substituting another, or adding items. The change order will state the change and dollar value for the change. The change order must be signed by both the contractor and the homeowner, and submitted to the Program Operator for approval. If the change order exceeds the approved financing, the homeowner will be asked to provide additional funds or a report and request for additional funds may be presented to the Sponsor’s Loan Review Committee for approval prior to Program Operator signing-off on the change order.

J. Progress Payments
Ninety percent (90%) of the contract amount is distributed to the contractor in the form of progress payments during construction. The final ten-percent (10%) of the contract amount is set aside as a retention payment. The contractor requests a progress payment from the homeowner and notifies the Program Operator that he/she has done so. Upon favorable inspection by the homeowner, Program Operator, and Sponsor or Sponsor’s Building Inspector, the payment authorization is signed by the homeowner and submitted for payment.

K. Final Inspections/Notice of Completion/Final Payment When the project is completed, the Program Operator inspects the work item by item with the homeowner, the contractor, and/or the Sponsor. The Sponsor’s Building Inspector performs a final inspection. Any corrections or deficiencies are noted and corrected by the contractor. Upon favorable final inspections, a Notice of Completion is prepared, signed by the homeowner, and then recorded. The final ten-percent (10%) retention payment is released 35 days after the recording of the Notice of Completion.

1.3. LOAN PROCESS
The Sponsor’s Loan Review Committee must approve all loans and grants. The Loan Review Committee may approve assistance with CDBG financing exceeding 100 percent of after-rehabilitation value as needed in cases where no other financial resources are available to cover the cost of the repairs and where clear and convincing documentation exists, justifying why the exception is needed.

However, if the project is CalHome-funded, the total financing cannot be more than 105 percent of the after- rehabilitation value. For HOME-funded loans, the total financing cannot be more than 100 percent of the after-rehabilitation value, unless per HOME Management Memorandum 13-01 at https://www.hcd.ca.gov/grants-funding/grantsmanagement-memos/docs/Memo_13-01_re_grants_for_OOR.doc the entire HOME assistance amount is granted rather than loaned, due to a lack of any equity after rehabilitation, based on existing loans on the property and an after-rehabilitation value appraisal. In addition, the amount of HOME assistance, including Sponsor’s claimed Activity Delivery Costs, cannot exceed the Sponsor’s County HOME Per-Unit Subsidy January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 9 Limits and the after-rehabilitation value cannot exceed the HOME Homeownership Value Limits. See Attachment C for current limits and a link to the HCD Limits webpage.

In order to obtain financing, applicants must meet all property and eligibility guidelines in effect at the time the application is considered. Homeowners will be provided written notification of approval or denial. Any reason for denial will be provided to the applicant in writing.

1.4. CONFLICT OF INTEREST REQUIREMENTS
When the Sponsor’s program contains Federal funds, the applicable Conflict of Interest requirements of 24 CFR section 570.611 shall be followed for CDBG assistance. For CalHome-funded Programs, the applicable Conflict of Interest requirements of Public Contract Code sections 10410, 10411, and 10430 (e) shall be followed.

For HOME assistance, section 92.356 of the HOME Final Rule shall be followed, as follows:
(a) Conflicts prohibited. No persons described in paragraph (b) of this section who exercises or has exercised any functions or responsibilities with respect to activities assisted with HOME funds or who are in a position to participate in a decision making process or gain inside information with regard to these activities, may obtain a financial interest or benefit from a HOME-assisted activity, or have a financial interest in any contract, subcontract or agreement with respect to the HOME-assisted activity, or the proceeds from such activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter. Immediate family ties include (whether by blood, marriage or adoption) the spouse, parent (including stepparent), child (including stepchild), brother, sister (including a stepbrother or stepsister), grandparent, grandchild and in-laws of a covered person. (b) Persons covered. The conflict of interest provisions of paragraph (a) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the participating jurisdiction, State recipient, or subrecipient which are receiving HOME funds.
(c) Exceptions: Threshold requirements. Upon the written request of the participating jurisdiction to HCD, HUD may grant an exception to the provisions of paragraph (a) of this section on a case-by-case basis when it determines that the exception will serve to further the purposes of the HOME Investment Partnerships Program and the effective and efficient administration of the participating jurisdiction's program or project. See 24 CFR section 92.356(d)(1-6) for details on the documentation needed in order to submit an exception request to HUD.

A contractor with a vested interest in the property cannot bid on a rehabilitation job. Such a contractor may act as owner/builder, subject to standard construction procedures.

Owner/builders are reimbursed for materials purchased which are verified by invoice/receipt and used on the job. Reimbursement occurs after the installation is verified January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 10 by the Program Operator to be part of the scope of work. Owner/builders are not reimbursed for labor.

2.0. APPLICANT QUALIFICATIONS

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

Household: means one or more persons who will occupy a housing unit. Unborn children count in family size determination. For CalHome, unborn children are not counted.

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

2.1.1 OWNER-OCCUPIED REQUIREMENTS
Owner-Occupant - to be eligible, household income must be equal to or less than the applicable HCD income limits. Owner will be required to provide income documentation.

Refer to Income Inclusions and Exclusions for further guidance to the types of incomes to be included or excluded when calculating gross annual income. See Attachment A for HOME and CDBG. See Attachment A-1 for CalHome. Refer to Asset Inclusions and Exclusions for further guidance to the types of assets to be included or excluded when calculating gross annual income. See Attachment B.

Owner-occupants’ housing and/or debt ratios are not considered, nor is a credit report required, as the funding provided creates no additional monthly financial obligation. If an owner-occupant has a mortgage, it is verified that all payments are current and that no late payments have been received in the past twelve months.

2.2. INCOME QUALIFICATION CRITERIA
Projected annual gross income of the applicant household will be used to determine whether they are above or below the published HCD income limits. Income qualification criteria for HOME and CDBG, as shown in the most recent HCD program-specific guidance at https://www.hcd.ca.gov/grants-and-funding/income-limits/incomecalculation-and-determination-guide, will be followed to independently determine and certify the household’s annual gross income. Income will be verified by reviewing and documenting tax returns, copies of wage receipts, subsidy checks, bank statements and third-party verification of employment forms sent to employers. All documentation shall be dated within six months prior to loan closing and kept in the applicant file and held in strict confidence.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 11 A. HOUSEHOLD INCOME DEFINITION:

Household income is the annual gross income of all adult household members that is projected to be received during the coming 12-month period, and will be used to determine program eligibility. Refer to Income Inclusions and Exclusions for further guidance to the types of incomes to be included or excluded when calculating gross annual income. For those types of income counted, gross amounts (before any deductions have been taken) are used. Two types of income that are not considered would be income of minors and of live-in aides. Certain other household members living apart from the household also require special consideration. The household’s projected ability to pay must be used, rather than past earnings, when calculating income.

Housing and/or debt ratios are not considered as the funding provided creates no additional monthly financial obligation. If a homeowner has a mortgage, creditworthiness is verified by ensuring that all payments are current and that no late payments have been received in the past twelve months.

See Attachment A: HOME and CDBG 24 CFR Part 5 Annual Income Inclusions and Exclusions and Attachment A-1: CalHome Title 25 Section 6914 Annual Income inclusions and Exclusions (State)
B. ASSETS:

There is no asset limitation for participation in the Program. Income from assets is, however, recognized as part of annual income under the Part 5 definition. An asset is a cash or non-cash item that can be converted to cash. The value of necessary items such as furniture and automobiles are not included. (Note: it is the income earned – e.g. interest on a savings account – not the asset value, which is counted in annual income.)
An asset’s cash value is the market value less reasonable expenses required to convert the asset to cash, including: Penalties or fees for converting financial holdings and costs for selling real property. The cash value (rather than the market value) of an item is counted as an asset.

See Attachment B: Part 5 Annual Income Net Family Asset Inclusions and Exclusions

2.3. HOMEOWNER ELIGIBILITY AND RESIDENCY REQUIREMENTS
The Sponsor’s Housing Rehabilitation Program allows for owner-occupied properties to participate in the Program. Owner-occupied units must be the owner’s principal place of residence. A photocopy of a recent utility bill will verify proof of occupancy. No unit to be rehabilitated will receive financial assistance if it is currently occupied by an overincome household or does not meet the eligibility standards outlined in these guidelines.

2.3.1 OWNER-OCCUPIED
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 12 A. Continued residency is monitored annually per Attachment F for the term of the loan. Occupancy will be verified by the submission of the following:

1. Proof of occupancy in the form of a copy of a current utility bill; and

2. Statement of unit's continued use as primary residence of the owner.

B. In the event that an homeowner sells, transfers title, or discontinues residence in the rehabilitated property for any reason, the loan becomes due and payable, unless the following conditions are met:

The homeowner who received the loan dies and the heir to the property meets income requirements and intends to occupy the home as his/her principal residence.

If the heir does not meet applicable eligibility requirements, the loan is due and payable. Note: Loans provided by CalHome are not assumable.

C. If a homeowner converts the property to a rental unit, or any commercial or nonresidential use, the loan is due and payable, unless the loan was funded with CDBG and tenant and homeowner meet eligibility requirements as described in Section

2.3.2. below.

If the loan is funded with a CalHome Loan it is not transferable except under the following limited circumstances:
(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 becomes an 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 becomes an owner of the Property; or
(d) A transfer to an inter vivos trust in which the Borrower is and remains the beneficiary and occupant of the property.

3.0. PROPERTY ELIGIBILITY

3.1. CONDITIONS
A. No unit will be eligible if a household’s income exceeds the prescribed income limits listed in Attachment C.

B. Units to be rehabilitated must be located within the THE OTHER  incorporated areas of the Sponsor’s jurisdiction.

C. Property must contain a legal residential structure intended for continued residential occupancy.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 13 D. All repair work will meet Local Building Code standards. At a minimum, health and safety hazards must be eliminated. For CDBG the priority will be the elimination of health and safety hazards. Sponsor may also require elimination of code deficiencies. When HOME funds are used for housing rehabilitation, the property must meet all applicable current codes, rehabilitation standards, ordinances, and zoning ordinances at the time of project completion. However, if certain components of the house are sound and were built to code prescribed at the time of installation, no repair or alteration will be made to those components.

Section 8 Housing Quality Standards may be required on rentals by Sponsor when CDBG funds are used.

3.2. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE Tenants will be informed of their eligibility for temporary relocation benefits if occupancy during rehabilitation constitutes a danger to health and safety of occupants or public danger or is otherwise undesirable because of the nature of the project. Relocated persons will receive increased housing costs, payment for moving and related expenses and appropriate advisory services, as detailed in the Sponsor's "Residential Anti-displacement and Relocation Assistance Plan" (Attachment E).

Owner-occupants are not eligible for temporary relocation benefits, unless health and safety threats are determined to exist by the Program Operator. In cases where relocation is determined to be necessary by the Sponsor/Program Operator, assistance may be provided for actual costs incurred from the applicant’s loan proceeds or as a grant (see Section 4.4. for allowable grants). HOME-funded projects will provide relocation assistance in the form of a grant, which shall be included in the maximum assistance amount.

Note: Relocation benefits are not a requirement under CalHome, but are acceptable and may be covered by loan proceeds.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 14 3.3.NOTIFICATION AND DISCLOSURES - Not required by CalHome A. Occupants of units constructed prior to 1978 will receive proper notification of Lead-Based Paint (LBP) hazards as follows:

The Lead Hazard Information Pamphlet published by the EPA/HUD/Consumer Product Safety Commission will be given to all owners regardless of the cost of rehabilitation or paint test findings. If lead-based paint is found through testing or if presumed, a Notice of Lead Hazard Evaluation or Presumption will also be supplied.

When Lead hazards are present, a Notice of Lead Hazard Reduction Activity and a Lead Hazard Evaluation Report will also be provided (Attachment I).

B. Tenants located in properties that will receive housing rehabilitation will be provided a notice outlining their relocation rights and benefits (Attachment E).

3.4.ENVIRONMENTAL REVIEW
The Program Operator must conduct an environmental review in order to comply with 24 CFR section 92.352(a), which requires that the environmental effects of, and upon, each activity carried out with HOME funds be assessed in accordance with the provision of the National Environmental Policy Act of 1969 (NEPA) and the related authorities listed in HUD’s implementing HOME regulations at 24 CFR Part 58.

The Program Operator must use the Categorically Excluded, Subject To 58.5 (“CEST”) format found on the HUD Environmental Review page at
https://www.hudexchange.info/programs/environmental-review/, and Sponsor’s NEPA Certifying Officer must sign the completed certification. Sponsor must also use applicable worksheets at https://www.hudexchange.info/programs/environmental-review/federalrelated-laws-and-authorities/,for each CEST factor.

The Sponsor’s HOME Standard Agreement requires that HOME Program written approval of each project’s environmental review package is received, prior to committing funds to any rehabilitation project. HCD recommends that Program pre-approval of the environmental review package is obtained prior to the NEPA Certifying Officer signature.

The default NEPA Certifying Officer, until and unless delegated by an individual still in that position or by the governing body, is only the mayor, City Manager or City Administrator, County Administrative Officer or equivalent, or the Chair of the Board of Supervisors. NEPA Certifying Officer delegations must contain HUD-required language, and must be separate from other signatory delegations. Required language is available from the HOME Program.

The Sponsor must also document in each project file and its Environmental Review Record compliance with, or project or programmatic exemption from, California Environmental Quality Act (CEQA) requirements.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 15 4.0. THE PROGRAM LOAN

4.1. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE
An eligible homeowner may qualify for the full cost of rehabilitation/reconstruction work needed to comply with State and local codes and ordinances. Maximum assistance shall not exceed the Sponsor’s County HOME Maximum Per-Unit Subsidy Limits in Attachment C, which has a link to the HCD Limits webpage. For CDBG-funded programs, the maximum assistance for rehabilitation/reconstruction will not exceed $320,000. For CalHome-funded programs, the maximum assistance for rehabilitation/reconstruction shall not exceed the maximum amount as described in the most current CalHome NOFA.

4.2. AFFORDABILITY PARAMETERS FOR HOMEOWNERS
A. Total indebtedness against property shall not exceed 100 percent of after-rehabilitation value as determined by “Estimates of value” or an appraisal, for CDBG or HOME projects. The exception for HOME loans is per HOME Management Memorandum 13-01 at https://www.hcd.ca.gov/grants-funding/grants-managementmemos/docs/Memo_13-01_re_grants_for_OOR.doc wherein the entire HOME assistance amount is granted rather than loaned, due to a lack of any after-rehabilitation equity based on existing loans on the property. An estimate of after-rehab value will be made prior to making a commitment of funds using the method outlined in Section

4.5. Note: This does not apply to CalHome projects.

B. HOME-funded units’ after-rehabilitation values shall not exceed the HOME Program’s Homeownership Value Limits for Sponsor’s County as updated by HUD and published on the HCD WebsiteSee Attachment C for current limits, which may reflect temporary waivers not published on the HCD Website, and for a link to the HCD Limits webpage.

For CalHome-funded Programs, the maximum after-rehab value of a home shall be set at 100% of the current median sales price of a single family home located in the county the CalHome Program is serving, which is established by comparable sales or information provided by the California Real Estate Association. https://www.car.org/en/marketdata/data/countysalesactivity C. Total indebtedness against property shall not exceed 105 percent of the afterrehabilitation value as determined by an appraisal for CalHome projects. An estimate of After-Rehab Value will be made prior to making a commitment of funds using the method outlined in Section 4.5. Note: This does not apply to HOME or CDBG projects.

D. Costs may be supplemented with personal financing, or with other loan or grant programs, which are sources of leverage for the Sponsor.

E. Any bid within 10% of the Program Operator’s estimate may be selected, otherwise an explanation must be provided to the file for a bid selected exceeding 10% of the estimate.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 16 4.3. RATES AND TERMS

4.3.1. OWNER-OCCUPANTS
A. Homeowners are eligible for Deferred Payment Loans (DPL), at zero interest, evidenced by a Promissory Note and secured by a Deed of Trust, with no payback required for 30 years unless the borrower sells or transfers title or discontinues residence in the dwelling.

Payments may be made voluntarily on a DPL. Note: If it is determined by the Sponsor that repayment of a CalHome or CDBG Program loan at the maturity date causes a hardship to the homeowner, the Sponsor may opt the following:

1. Amend the note and deed of trust to defer repayment of the amount due at maturity, that is balance of the original principal plus the accrued interest, for up to an additional 30 years (at 0% additional interest). This may be offered one time;

2. Convert the debt at loan maturity; that is the balance of the original principal plus any accrued interest, to an amortized loan, repayable in 15 years at 0% additional interest.

B. If the homeowner dies, and if the heir(s) to the property live(s) in the house and is/are income eligible, the heir(s) may be permitted, upon approval of the Sponsor, to assume the loan at the rate and terms the heir(s) qualifies for under current participation guidelines.

Note: CalHome loans are not assumable.

C. If the homeowner dies and the heir(s) is/are not income eligible, the loan becomes all due and payable.

D. If a homeowner converts the rehabilitated property to any residential-rental, commercial or non-residential use, the loan becomes all due and payable, unless they meet requirements outlined in Section 2.3.2.

E. As specified in the Rehabilitation Loan Agreement, all applicants who participate in the Program must maintain the property at post-rehabilitation conditions for the term of the loan. Should the property not be maintained accordingly, the loan shall be considered in default and becomes all due and payable, and if necessary, foreclosure proceedings will be initiated. A method of inspection will be established by the Sponsor.

F. For CalHome, loans are not assumable. The following transfers of interest shall not require the repayment of the CalHome Program loan:
1) transfer to a surviving joint tenant by devise, descent, or operation of law on the death of a joint tenant;
2) a transfer in which the transferee is a person who occupies or will occupy the property, which is:
(i) a transfer where the spouse becomes an owner of the property; January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 17 (ii) a transfer resulting from a decree of dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement by which the spouse becomes an owner of the property; or (iii) a transfer into an inter vivos trust in which the Borrower is and remains the beneficiary and occupant of the property.

4.4. GRANTS
A. CDBG-funded programs may provide grants as follows:

1. A grant of up to $50,000 is available for any one of the following qualifying factors:
a) Senior Citizen - at least 62 years old; or
b) Handicapped – for only handicap modifications to a house with one or more physically handicapped occupants who would function more independently if such modifications were installed; or
c) Lowest Targeted Income Group – with gross annual income less than 50 percent of County median income; or
d) Equity maintenance – if financing rehabilitation entirely with a loan would cause indebtedness to exceed 100% of after-rehabilitation value; or
e) Curb, gutter and sidewalk – when curb, gutter and/or sidewalk are required by City code; or
f) Building permit, school fees, appraisals, property report/title insurance, building permits, termite report, land survey, grading plans, recording fees and/or flood insurance; or
g) Emergencies – failure of a major household component that would require the participant to live without basic plumbing, electrical, heating, cooling, or security. (These funds are not for use during a normal rehabilitation, they are for true emergency situations, such as a failed sewer line or water heater, blown electrical panel, etc.)

2. Grants of up to $10,000 are available for Fire Sprinkler installation and associated costs – for reconstruction projects, as required by CCR, Title 24, Part

2.5 of the 2010 California Residential Code.

3. Grants are available for the repair, replacement, or abandonment of domestic water wells and/or associated costs (such as water pump lowering) based on invoices from contracted well drillers and/or water pump installers. The Program Operator must approve a total cost estimate from a contracted well driller and/or water pump installer prior to financing approval to ensure cost reasonableness.

4. Grants of up to $7,500 are available for Asbestos containment and/or removal.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 18 B. HOME and CDBG provide grants for all actual costs of lead-based paint evaluation and reduction activities.

C. HOME and CDBG provide grants for relocation assistance. See Relocation Assistance Plan, Attachment E.

1. Owner-Occupant – Limit of $3,000.

2. Residential Tenant – Assistance will be provided at the level necessary to comply with the Uniform Relocation Act (URA) and Section 104(d) of the Housing and Community Development Act of 1974. Note: HOME funds cannot be used for tenant-occupied units.

D. HOME-funded projects include grants, if necessary, to cover the costs of financing in excess of available equity. Available equity will be determined by subtracting the current total indebtedness from the after-rehabilitation value. Grants provided may be up to 25 percent of the applicable HUD Per-Unit Subsidy Limits established pursuant to 24 CFR 92.250 (a). This grant amount is in addition to any grant funds provided pursuant to Section 4.4.B. and 4.4.C.

E. Grants are not available in CalHome-funded programs.

4.5. APPRAISAL
A. The After-Rehab Value for rehabilitation projects is determined using the “Estimates of value” method. The Sponsor or Program Operator determines estimates of value based on the sale prices of at least three (3) comparable properties, sold within the last six months (within one year of the assistance date, which is the date the promissory note is signed), and located within one mile of the subject property. The participants’ file will include the estimate of value and document the basis for the value estimates.

The purpose of the “Estimates of value” is to determine that the After-Rehabilitation Value Limit of the housing unit will not exceed the permitted amount per HCD Program regulations (See Attachment C). If three comparable properties cannot be found, or if there is any question regarding the After-Rehab Value, the ARV will be determined by a licensed appraiser, as described in Section 4.5.B. below.

B. A licensed appraiser determines the After-Rehab Value for rehabilitation projects, when the “Estimates of value” method cannot be used. For rehabilitation projects the appraiser determines the value of the unit with the rehabilitation building plans and specifications included. For HOME only, the cost of the appraisal will be paid by the Sponsor, not by the homeowner. The purpose of the appraisal is to determine that the after-rehabilitation value of the housing unit will not exceed the permitted amount per HCD Program regulations (See Attachment C), and that the combined loans will not exceed the maximum combined loan-to-value limit, as described in Section 4.2.A above.

C. The After-Rehab Value for reconstruction projects is determined by a licensed appraiser. The After-Rehab Value for reconstruction projects is determined by an appraisal completed off the building plans and specifications for the new home. For HOME only, the cost of the appraisal will be paid by the Sponsor, not by the homeowner. The purpose of the appraisal is to determine that the After-Rehabilitation January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 19 Value Limit of the housing unit will not exceed the permitted amount per HCD Program regulations (See Attachment C).

4.6. INSURANCE

4.6.1. HAZARD INSURANCE
The homeowner shall maintain hazard insurance on the property for the duration of the Program loan(s). This insurance must be an amount adequate to cover all encumbrances on the property. The insurer must identify the Sponsor as Loss Payee for the amount of the Program loan(s). Evidence of this shall be provided to the Sponsor.

In the event the applicant fails to make the hazard insurance premium payments in a timely fashion, the Sponsor at its option, may make such payments for a period not to exceed 60 days. The Sponsor may, in its discretion and upon the showing of special circumstances, make such premium payments for a longer period of time. Should the Sponsor make any payments, it may, in its sole discretion, add such payments to the principal amount that the applicant is obligated to repay the Sponsor under this Program. The premium may be paid by the Program loan for one year. Note: HOME and CDBG funds cannot be used to pay insurance cost beyond those identified as initial loan costs. Note: CalHome funds can not be used to pay insurance at any time.

4.6.2. FLOOD INSURANCE
For homes in a 100-year flood zone, the owner is required to maintain flood insurance in an amount adequate to secure the Program loan and all other encumbrances. This policy must designate the Sponsor as Loss Payee and a binder shall be provided to the Sponsor and maintained in the borrowers file. The premium may be paid by the Program loan for one year. Note: HOME funds cannot be used to pay insurance cost beyond those identified as initial loan costs. Note: CalHome funds can not be used to pay insurance at any time.

4.7. LOAN SECURITY
A. Loan security for all owner-occupied rehabilitation stick-built homes will be secured by the real property and improvements, and will also include a Deed of Trust, Promissory Note and Loan Agreement in favor of the Sponsor.

B. A manufactured home in a mobile home park or on leased land that is not on a permanent foundation will be secured by an HCD 480.7 or an HCD 484 Statement of Lien, and will also include a Promissory Note and Loan Agreement.

C. Entering a subordinate lien is acceptable. However, the Sponsor will not subordinate a first lien position once established.

5.0. PROGRAM LOAN SERVICNG AND MAINTENANCE

5.1. PAYMENTS ARE VOLUNTARY
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 20 Borrowers may begin making voluntary payments at any time.

5.2. RECEIVING LOAN REPAYMENTS
A. Program loan payments will be made to:

City of Exeter
137 N. F St.

Exeter, CA. 93221
B. The Sponsor will be the receiver of loan payments or recapture funds and will maintain a financial record-keeping system to record payments and file statements on payment status. Payments shall be deposited and accounted for in the Sponsor’s appropriate Program Income Account, as required by all three HCD programs. The Program Sponsor will accept loan payments from borrowers prepaying deferred loans, from borrowers making payments in full upon sale or transfer of the property, and homeowners of tenant-occupied units. All loan payments are payable to the Sponsor. The Sponsor may at its discretion, enter into an agreement with a third party to collect and distribute payments and/or complete all loan servicing aspects of the Program.

5.3. LOAN SERVICING POLICIES AND PROCEDURES
See Attachment F for local loan servicing policies and procedures. While the attached policy outlines a system that can accommodate a crisis that restricts borrower repayment ability, it should in no way be misunderstood: The loan must be repaid. All legal means to ensure the repayment of a delinquent loan as outlined in the Loan Servicing Policies and Procedures will be pursued.

5.4. LOAN MONITORING PROCEDURES
Homeowners will be required to submit each of the following to the Sponsor at the time of annual occupancy verification per Attachment F:
• Proof of occupancy in the form of a copy of a current utility bill; • Statement of unit's continued use as a residence;
• Declaration that other title holders do not reside on the premises; • Verification that Property Taxes are current; and
• Verification of current required insurance policies.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 21 5.5. DEFAULT AND FORECLOSURE
If an owner defaults on a loan, and foreclosure procedures are instituted, they shall be carried out according to the Program Foreclosure Policy adopted by the Sponsor, and attached to these guidelines as Attachment G.

5.6. SUBORDINATIONS
The Sponsor may approve a request to subordinate a loan, in order for the owner to refinance the property, under the following conditions:

A. The lien position of the Sponsor loan will remain the same or be advanced.

B. The new primary loan is no greater than the balance of the loan being refinanced, except the costs of refinancing the loan may be added to the principal balance.

C. The purpose of the new primary loan is to reduce the interest rate being paid and/or reduce the owner's payment.

D. The refinanced loan must have an impound account for taxes and insurances.

E. The refinancing terms must be acceptable to the Sponsor.

F. CDBG allows refinancing with CDBG funds in conjunction with only rehabilitation of the unit.

6.0. CONSTRUCTION

6.1. STANDARDS
A. All repair work will meet Local Building Code standards. At a minimum, health and safety hazards must be eliminated. For CDBG and CalHome the priority will be the elimination of health and safety hazards. Sponsor may also require elimination of code deficiencies. When HOME funds are used for housing rehabilitation, the property must meet all applicable current codes, rehabilitation standards, ordinances, and zoning ordinances at the time of project completion. However, if certain components of the house are sound and were built to code prescribed at the time of installation, no repair or alteration will be made to those components. Section 8 Housing Quality Standards may be required on rentals by Sponsor when CDBG funds are used.

B. Contracting Process

1. Contracting will be done on a competitive basis.

2. The homeowner will be the responsible agent, but the Sponsor and/or its Program Operator will prepare the work write-up, prepare and advertise the bid package, and assist the owner in negotiating the construction contract.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 22 3. The Sponsor does not warrant any construction work, or provide insurance coverage.

C. Approved Contractors

1. Contractors are required to be licensed with the State of California, and be active and in good standing with the Contractors’ License Board.

2. Contractors will be checked against HUD’s list of federally debarred contractors. No award will be granted to a contractor on this list.

3. Contractors must have public liability and property damage insurance, and worker’s compensation, unemployment and disability insurance, to the extent required by State law.

4. Contractor must agree to comply with all federal and state regulations.

D. Occupants of units constructed prior to 1978 will receive proper notification of LeadBased Paint (LBP) hazards as identified in Section 3.3.A. Note: Units funded solely with CalHome funds are not required to comply with LBP regulations.

E. Units constructed prior to 1978 will also be inspected according to the following HUD regulations. Note: Units funded solely with CalHome funds are not required to comply with LBP regulations. For CDBG-funded programs, please refer to Chapter 20, Lead-Based Paint Requirements for guidance in the CDBG Grant Management Manual.

1. If the total amount of Federal assistance or the total amount of rehabilitation hard cost is up to and including $5,000, the following is required:
(a) Paint testing or presume LBP;
(b) Clearance of disturbed work areas; and
(c) Notifications listed in Section 3.3.A.

2. If the amount of Federal assistance or the total amount of rehabilitation hard cost is more than $5,000 up to and including $25,000, the following is required:
(a) Paint testing or presume LBP;
(b) Risk assessment; and
(c) Clearance of unit.

If LBP hazards are identified, interim controls will be implemented. This level will also require a notice of “Abatement of Lead Hazards Notification” at least five days prior to starting work.

3. If the amount of Federal assistance or the total amount of rehabilitation hard cost is more that $25,000, the following is required:
(a) Items (a), (b), and (c) of 2. above;
(b) Abatement of all LBP hazards identified or produced; (c) Use of interim controls on exterior surfaces not disrupted by rehab; and all notices listed above in Sections 3.3.A. and 6.1.F.2.

4. All paint tests that result in a negative finding of lead-based paint are exempt from January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 23 any and all additional requirements. If defective paint surfaces are found, they will be properly treated or abated. A State-certified Inspector/Assessor will perform all paint testing, risk assessments, and clearances. A trained supervisor may oversee interim controls; however, a certified supervisor and workers will perform all abatement.

6.2. ELIGIBLE CONSTRUCTION COSTS
“Rehabilitation” means, in addition to the definition in Title 25, Section 50096 of the California Health and Safety Code, repairs and improvements to a manufactured home necessary to correct any condition causing the home to be substandard pursuant to Section 1704 of Title 25, California Code of Regulations. Rehabilitation also includes room additions to alleviate overcrowding. Rehabilitation also means repairs and improvements where necessary to meet any locally-adopted standards used in local rehabilitation programs. Rehabilitation does not include replacement of personal property.

Rehabilitation includes reconstruction. Federal law and policy allows the use of HOME funds to demolish and reconstruct owner-occupied residential structures. Reconstruction is defined as the demolition and construction of a structure. The Sponsor and/or Program Operator must document that the reconstruction costs are less than the cost to rehabilitate the existing substandard housing. This will be done using the State’s CDBG Test for Reconstruction, for projects funded with CDBG funds; or, using the State’s HOME Test for Reconstruction, for projects funded with HOME funds, for which advance HOME Program written approval is required.

Additionally, for HOME-funded projects, the Sponsor must determine that the project’s value after reconstruction (housing and land combined) is less that the HOME Homeownership Value Limits for the Sponsor’s jurisdiction (see Attachment C).

The residential structure to be reconstructed must be a structure with cooking, eating, sleeping, and sanitation facilities which has been legally occupied as a residence within the preceding 12 months. Fifth wheels or recreational vehicles, for example, are not considered dwellings and therefore are not eligible under this Program.

Like for like requires that the structure being demolished must be replaced with a like structure (replace manufactured housing with manufactured housing, for example).

However, additions may be approved by the HCD Program when required by Codes/Ordinances or to alleviate overcrowding (see Attachment C).

Temporary relocation benefits must be planned for and budgeted into the total allowable subsidy for the project, but if required would be in the form of a grant.

Depending on the outcome of the environmental review and completion of the HUD CEST form, any rehabilitation or reconstruction project may require an Authority to Use Grant Funds from the Department before funds are committed to the project.

Allowable rehabilitation\reconstruction costs include:

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 24 A. Cost of building permits and other related government fees.

B. Cost of architectural, engineering, and other consultant services which are directly related to the rehabilitation of the property.

C. For CDBG and CalHome, costs associated with the repair, replacement, or abandonment of domestic water wells and/or associated costs (such as water pump lowering).

D. Rehabilitation or Replacement of a manufactured home not on a permanent foundation. Rehabilitation of a manufactured home may include the replacement of the unit with a used manufactured home and the cost to repair it, as long as the unit has been occupied and not used as a demonstration model. Should the unit meet the criteria for reconstruction a new manufactured home can be used for replacement and all cost associated with the purchase and transportation can be added to the loan. For CalHome and CDBG, manufactured housing on permanent foundations may be replaced by stick-built structures.

CalHome requires the following for manufactured housing/mobile home to stick-built replacements:
1) Verification that the owner of the mobile home is also the landowner. The registration certificate and a preliminary title report must be submitted with the Borrower summary package. Any past due registration fees must be paid. 2) Provide written justification as to why the mobile home is being replaced and not repaired.

3. Ensure the new structure is “reasonable” for the size of the current household.

E. Owner-occupied rehabilitation activity delivery fees, pursuant to Section 7733(f), as reimbursement to the Sponsor for the actual costs of services rendered to the homeowner that are incidentally but directly related to the rehabilitation work (e.g. planning, engineering, construction management, including inspections and work write-ups).

F. Rehabilitation will address the following issues in the order listed. Eligible costs are included for each item.

1. Health and Safety Issues
Eligible costs include, but are not limited to, energy-related improvements, lead-based paint hazard evaluation and reduction activities, improvements for handicapped accessibility, and repair or replacement of major housing systems.

Per the federal HOME Regulations at 24 CFR section 92.251(b), Major Systems are:
•structural support
•roofing
•cladding and weatherproofing (e.g., windows, doors, siding, gutters) •plumbing
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 25 •electrical
•heating, ventilation, and air conditioning.

Upon project completion, each of the major systems must have a remaining useful life for a minimum of five (5) years, so these systems must be rehabilitated or replaced as part of the rehabilitation work in order to achieve this requirement.

A driveway may be considered part of rehabilitation if it is determined to be a health and safety issue.

2. Code and Regulation Compliance
Eligible costs include, but are not limited to, additional work required to rehabilitate and modernize a home to bring it into compliance with current building codes and regulations. Painting and weatherization are included.

3. Demolition
Eligible costs include, but are not limited to, the tear down and disposal of dilapidated structures when they are a part of the reconstruction of an affordable housing unit. If a garage or carport is detached, it may not be rehabilitated but may be demolished, if it is determined to be a health and safety issue.

4. Upgrades (based on overcrowding)
Eligible costs include additional bedrooms and bathrooms if the need can be demonstrated per HUD’s or Sponsor’s overcrowding guidelines listed in Attachment C. The Program will not fund additions to a home for a den or family room, or for any luxury items.

The CalHome Program’s requirement is that a bedroom or bathroom can be added to omit overcrowding, and this is up to the Recipient to decide what is overcrowding.

5. General Property Improvements
Eligible costs include, but are not limited to: addition or replacement of an oven, stove, dishwasher, or fixture; replacing floor coverings; painting; and repair or installation of fencing.

All improvements must be physically attached to the property and permanent in nature. Non-code general property improvements (including fencing, landscaping, driveway, etc.) will be limited to 15 percent of the rehabilitation loan amount. Any cash contribution by the property owner will be considered a general property improvement and be included in this percentage. Luxury items are not permitted. Items such as stoves and dishwashers that are not built-in January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 26 may be replaced due only to incipient failure or documented medical condition of the homeowner, and must be of moderate quality.

For HOME and CalHome, replacement of a refrigerator is not allowed. For CalHome, repair or installation of fencing is not allowed.

6. Rehabilitation Standards
All repair work related to health and safety conditions will meet Local Building Code standards. The priority will be the elimination of all health and safety hazards and code compliance, which is required for HOME-funded projects.

6.3. ELIGIBLE PROJECT COSTS
Examples of eligible project costs for all administrative expenses related to the paperwork for processing and insuring a loan application are listed below. For HOME, these costs are considered activity delivery costs and may not be charged to the homeowner’s loan. • Appraisal
• Property Report/Title Insurance
• Building Plan
• Termite Report
• Land Survey
• Grading Plan
• Recording Fees
• Hazard/Course of Construction Insurance
• Flood Insurance, as applicable (not allowed with CalHome or HOME funds)
Costs are based on charges currently incurred by the Sponsor, or its Program Operator, for these products and/or services. Except for HOME loans, any cost increases charged to the Sponsor/Program Operator for these products and/or services will be passed on to the homeowner and included in the loan. All fees are subject to change and are driven by the market.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 27 6.4. REPAIR CALLBACKS
Contractors will comply with State law regarding all labor and material warranties. All labor and material shall meet FHA minimum specifications.

7.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES

7.1. AMENDMENTS
The Sponsor may make amendments to these Participant Guidelines. Any changes made shall be in accordance with federal and state regulations, shall be approved by the Sponsor’s Loan Committee and/or local governing body and submitted to HCD for approval.

7.2. EXCEPTIONS
Any case to which a standard policy or procedure, as stated in the guidelines, does not apply or an applicant treated differently from others of the same class would be an exception.

7.2.1 PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES
A. The Sponsor or its Program Operator may initiate consideration of an exception and prepare a report. This report shall contain a narrative, including the Sponsor’s/Program Operator’s recommended course of action and any written or verbal information supplied by the applicant.

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

8.0. DISPUTE RESOLUTION AND APPEALS PROCEDURES

8.1. PROGRAM COMPLAINT AND APPEAL PROCEDURE
Complaints concerning the Sponsor’s Rehabilitation Program should be made to the Program Operator first. If unresolved in this manner, the complaint or appeal shall be made in writing and filed with the Sponsor. The Sponsor will then schedule a meeting with the Sponsor’s Loan Review Committee. Their written response will be made within thirty (30) working days. If the applicant is not satisfied with the committee's decision, a request for an appeal may be filed with the local governing body. Final appeal may be filed in writing with HCD within one year after denial or the filing of the Project Notice of Completion.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 28 8.2. GRIEVANCES BETWEEN PARTICIPANTS AND CONSTRUCTION

CONTRACTOR
Contracts signed by the contractor and the participant include the following clause, which provides a procedure for resolution of grievances:

Any controversy arising out of or relating to this Contract, or the breach thereof, shall be submitted to binding arbitration in accordance with the provisions of the California Arbitration Law, Code of Civil Procedure 1280 et seq., and the Rules of the American Arbitration Association. The arbitrator shall have the final authority to order work performed, to order the payment from one party to another, and to order who shall bear the costs of arbitration. Costs to initiate arbitration shall be paid by the party seeking arbitration. Notwithstanding, the party prevailing in any arbitration proceeding shall be entitled to recover from the other all attorney's fees and costs of arbitration.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 29 ATTACHMENT A
24 CFR Part 5 ANNUAL INCOME INCLUSIONS AND EXCLUSIONS
24 CFR Part 5 Annual Income Inclusions
§5.609 Annual income.
(a) Annual income means all amounts, monetary or not, which:
(1) Go to, or on behalf of, the family head or spouse (even if temporarily absent) or to any other family member; or
(2) Are anticipated to be received from a source outside the family during the 12-month period following admission or annual reexamination effective date; and (3) Which are not specifically excluded in paragraph (c) of this section. (4) Annual income also means amounts derived (during the 12-month period) from assets to which any member of the family has access.
(b) Annual income includes, but is not limited to:
(1) The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services; (2) The net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family;
(3) Interest, dividends, and other net income of any kind from real or personal property.

Expenditures for amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation is permitted only as authorized in paragraph (b)(2) of this section. Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of $5,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD;
(4) The full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump-sum amount or prospective monthly amounts for the delayed start of a periodic amount (except as provided in paragraph (c)(14) of this section); (5) Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation and severance pay (except as provided in paragraph (c)(3) of this section); (6) Welfare assistance payments.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 30 (i) Welfare assistance payments made under the Temporary Assistance for Needy Families (TANF) program are included in annual income only to the extent such payments:
(A) Qualify as assistance under the TANF program definition at 45 CFR 260.31; and
(B) Are not otherwise excluded under paragraph (c) of this section. (ii) If the welfare assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the welfare assistance agency in accordance with the actual cost of shelter and utilities, the amount of welfare assistance income to be included as income shall consist of:
(A) The amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities; plus
(B) The maximum amount that the welfare assistance agency could in fact allow the family for shelter and utilities. If the family's welfare assistance is ratably reduced from the standard of need by applying a percentage, the amount calculated under this paragraph shall be the amount resulting from one application of the percentage.
(7) Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from organizations or from persons not residing in the dwelling;
(8) All regular pay, special pay and allowances of a member of the Armed Forces (except as provided in paragraph (c)(7) of this section).
(9) For section 8 programs only and as provided in 24 CFR 5.612, any financial assistance, in excess of amounts received for tuition and any other required fees and charges, that an individual receives under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), from private sources, or from an institution of higher education (as defined under the Higher Education Act of 1965 (20 U.S.C. 1002)), shall be considered income to that individual, except that financial assistance described in this paragraph is not considered annual income for persons over the age of 23 with dependent children. For purposes of this paragraph, “financial assistance” does not include loan proceeds for the purpose of determining income.
24 CFR Part 5 Annual Income Exclusions
(c) Annual income does not include the following:
(1) Income from employment of children (including foster children) under the age of 18 years; (2) Payments received for the care of foster children or foster adults (usually persons with disabilities, unrelated to the tenant family, who are unable to live alone); (3) Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses (except as provided in paragraph (b)(5) of this section); (4) Amounts received by the family that are specifically for, or in reimbursement of, the cost of medical expenses for any family member;
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 31 (5) Income of a live-in aide, as defined in §5.403;
(6) Subject to paragraph (b)(9) of this section, the full amount of student financial assistance paid directly to the student or to the educational institution; (7) The special pay to a family member serving in the Armed Forces who is exposed to hostile fire;
(8) (i) Amounts received under training programs funded by HUD; (ii) Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS); (iii) Amounts received by a participant in other publicly assisted programs which are specifically for or in reimbursement of out-of-pocket expenses incurred (special equipment, clothing, transportation, child care, etc.) and which are made solely to allow participation in a specific program;
(iv) Amounts received under a resident service stipend. A resident service stipend is a modest amount (not to exceed $200 per month) received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development. Such services may include, but are not limited to, fire patrol, hall monitoring, lawn maintenance, resident initiatives coordination, and serving as a member of the PHA's governing board. No resident may receive more than one such stipend during the same period of time;
(v) Incremental earnings and benefits resulting to any family member from participation in qualifying State or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives, and are excluded only for the period during which the family member participates in the employment training program;
(9) Temporary, nonrecurring or sporadic income (including gifts); (10) Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era; (11) Earnings in excess of $480 for each full-time student 18 years old or older (excluding the head of household and spouse);
(12) Adoption assistance payments in excess of $480 per adopted child; (13) [Reserved]
(14) Deferred periodic amounts from supplemental security income and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or in prospective monthly amounts.
(15) Amounts received by the family in the form of refunds or rebates under State or local law for property taxes paid on the dwelling unit;
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 32 (16) Amounts paid by a State agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member at home; or
(17) Amounts specifically excluded by any other Federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in 24 CFR 5.609(c) apply. A notice will be published in the FEDERAL REGISTER and distributed to PHAs and housing owners identifying the benefits that qualify for this exclusion. Updates will be published and distributed when necessary. [See https://www.federalregister.gov/documents/2014/05/20/2014- 11688/federally-mandated-exclusions-from-income-updated-listing for most recent notice] (d) Annualization of income. If it is not feasible to anticipate a level of income over a 12-month period (e.g., seasonal or cyclic income), or the PHA believes that past income is the best available indicator of expected future income, the PHA may annualize the income anticipated for a shorter period, subject to a redetermination at the end of the shorter period.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 33 ATTACHMENT A-1
Title 25 Section 6914 Gross Income Inclusions – For CalHome activities “Gross income” shall mean the anticipated income of a person or family for the twelve-month period following the date of determination of income.
“Income” shall consist of the following:
(a) Except as provided in subdivision (b), “Exclusions”, all payments from all sources received by the family head (even if temporarily absent) and each additional member of the family household who is not a minor shall be included in the annual income of a family. Income shall include, but not be limited to:
(1) The gross amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses;
(2) The net income from operation of a business or profession or from rental or real or personal property (for this purpose, expenditures for business expansion or amortization of capital indebtedness shall not be deducted to determine the net income from a business);
(3) Interest and dividends;
(4) The full amount of periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts;
(5) Payments in lieu of earnings, such as unemployment and disability compensation, worker’s compensation and severance pay;
(6) Public Assistance. If the public assistance payment includes any amount specifically designated for shelter and utilities which is subject to adjustment by the public assistance agency in accordance with the actual cost of shelter and utilities, the amount of public assistance income to be included as income shall consist of:
(A) The amount of the allowance or grant exclusive of the amount specifically designated for shelter and utilities, plus
(B) The maximum amount which the public assistance agency could in fact allow for the family for shelter and utilities,
(7) Periodic and determinable allowances such as alimony and child support payments, and regular contributions or gifts from persons not residing in the dwelling; All regular pay, special pay and allowances of a member of the Armed Forces (whether or not living in the dwelling) who is head of the family or spouse.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 34 ATTACHMENT B
PART 5 ANNUAL INCOME NET FAMILY ASSET INCLUSIONS AND EXCLUSIONS This table presents the Part 5 asset inclusions and exclusions as stated in the HUD Technical Guide for Determining Income and Allowances for HOME Program (Third Edition; January 2005).

Statements from 24 CFR Part 5 – Last Modified: January 2005 Inclusions

1. Cash held in savings accounts, checking accounts, safe deposit boxes, homes, etc. For savings accounts, use the current balance. For checking accounts, use the average 6-month balance. Assets held in foreign countries are considered assets.

2. Cash value of revocable trusts available to the applicant.

3. Equity in rental property or other capital investments. Equity is the estimated current market value of the asset less the unpaid balance on all loans secured by the asset and all reasonable costs (e.g., broker fees) that would be incurred in selling the asset. Under HOME, equity in the family's primary residence is not considered in the calculation of assets for owner-occupied rehabilitation projects.

4. Cash value of stocks, bonds, Treasury bills, certificates of deposit and money market accounts.

5. Individual retirement, 401(K), and Keogh accounts (even though withdrawal would result in a penalty).

6. Retirement and pension funds.

7. Cash value of life insurance policies available to the individual before death (e.g., surrender value of a whole life or universal life policy).

8. Personal property held as an investment such as gems, jewelry, coin collections, antique cars, etc.

9. Lump sum or one-time receipts, such as inheritances, capital gains, lottery winnings, victim's restitution, insurance settlements and other amounts not intended as periodic payments.

10. Mortgages or deeds of trust held by an applicant.

Exclusions

1. Necessary personal property, except as noted in number 8 of Inclusions, such as clothing, furniture, cars and vehicles specially equipped for persons with disabilities.

2. Interest in Indian trust lands.

3. Assets not effectively owned by the applicant. That is, when assets are held in an individual's name, but the assets and any income they earn accrue to the benefit of someone else who is not a member of the household and that other person is responsible for income taxes incurred on income generated by the asset.

4. Equity in cooperatives in which the family lives.

5. Assets not accessible to and that provide no income for the applicant.

6. Term life insurance policies (i.e., where there is no cash value).

7. Assets that are part of an active business. "Business" does not include rental of properties that are held as an investment and not a main occupation.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 35 ATTACHMENT B-1
Title 25 Section 6914 Gross Income Inclusions – For CalHome activities (b) The following items shall not be considered as income:
(1) Casual, sporadic or irregular gift items;
(2) Amounts which are specifically for or in reimbursement of the cost of medical expenses;
(3) Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker’s compensation), capital gains and settlement for personal or property losses; (4) Amounts of educational scholarships paid directly to the student or to the educational institution, and amounts paid by the government to a veteran for use in meeting the costs of tuition, fees, books and equipment. Any amounts of such scholarships, or payments to veterans not used for the above purposes of which are available for a subsistence are to be included in income;
(5) The special pay to a serviceman head of a family away from home and exposed to hostile fire;
(6) Relocation payments made pursuant to federal, state, or local relocation law; (7) Foster child care payments;
(8) The value of coupon allotments for the purchase of food pursuant to the Food Stamp Act of 1964 which is an excess of the amount actually charged the eligible household; (9) Payments received pursuant to participation of the following volunteer programs under the ACTION Agency:
(A) National Volunteer Antipoverty Programs which include VISTA, Service Learning Programs and Special Volunteer Programs.
(B) National Older American Volunteer Program for persons aged 60 and over which include Retired Senior Volunteer Programs, Foster Grandparent Program, older American Community Services Program, and National Volunteer Program to Assist Small Business Experience, Service Corps of Retired Executive (SCORE) and Active Corps of Executives (ACE).

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 36 ATTACHMENT C

HOME PROGRAM HOMEOWNERSHIP VALUE LIMITS FOR TULARE COUNTY (HOME Value Limits as of 09/01/2024)
COUNTY NAME One-Family
TULARE $371,000
[Note from HOME to remove: if you have exception limits approved by HOME, modify this table as needed and indicate from/through date of the exception]

CALHOME MAXIMUM SALES PRICE / VALUE LIMIT
1 as established by comparable sales or information provided by the California Real Estate Association. https://www.car.org/en/marketdata/data/countysalesactivity

HOME MAXIMUM PER-UNIT SUBSIDY LIMITS FOR STATE OF CALIFORNIA (Limits are effective 02-13-2024)
O-BDR 1-BDR 2-BDR 3-BDR 4-BDR
$181,488 $208,049 $252,994 $327,293 $359,263
CALHOME SUBSIDY LIMIT (as of 12/12/2024 NOFA, amended 01/17/2025) Maximum assistance per unit is established by the most current CalHome NOFA. Current limits are $200,000 for housing rehabilitation, and $250,000 for reconstruction projects.

HOME PROGRAM HOUSEHOLD INCOME LIMITS FOR TULARE COUNTY* (Limits are effective 06/01/2025)
Number of Persons in Household
1 2 3 4 5 6 7 8
80% of
AMI
$52,600 $60,100 $67,600 $75,100 $81,150 $87,150 $93,150 $99,150 HCD 04/23/2025 INCOME LIMITS FOR CALHOME

ADJUSTED FOR FAMILY SIZE FOR TULARE COUNTY
Income
Level
Household Size
1 2 3 4 5 6 7 8
80% $52,600 $60,100 $67,600 $75,100 $81,150 $87,150 $93,150 $99,150 Sponsor will insert the limits for the county in which the Program is located, and will update the income limits annually as HCD provides new information. The link to the official, HCDmaintained Value, Subsidy, and Income limits is: State and Federal Income, Rent, and Loan/https://www.hcd.ca.gov/funding/income-limits/state-federal-income-limits/cdbghome-nhtf for HOME and CDBG limits, choose “State CDBG, HOME, and NHTF/HHC Article I - Income, Value , Subsidy and Rent Limits”; for CalHome income limits, choose “Official State Income Limits”).

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 37 SPONSOR STANDARDS FOR BEDROOM AND BATHROOM ADDITIONS TO

ALLEVIATE OVERCROWDING
Maximum No.
of Persons in
the Household
Number of
Bedrooms
Number of
Bathrooms
1 SRO 1
1 0-BR 1
2 1-BR 1
4 2-BR 2
6 3-BR 2
8 4-BR 3
10 5-BR 3
12 6-BR 4
• Opposite sex children under 6 years of age may share a bedroom, up to 2 children per bedroom.
• Opposite-sex children 6 years of age and older may have their own bedroom. • Children shall be permitted a separate bedroom from their parents. • Same-sex children of any age may share a bedroom, up to 2 children per bedroom. • Adults not in a partner relationship may have their own bedroom. • 4 or more people – a second bathroom may be added.
• 8 or more people – a third bathroom may be added.
• Same rules apply to mobile home units.

The chart above is used as a guide to overcrowding.

January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 38 ATTACHMENT D

HOUSING REHABILITATION MARKETING PLAN

SUMMARY
The Sponsor will continue its efforts to market the Housing Rehabilitation Program in a manner that will reach all community members.

All marketing related to the Housing Rehabilitation Program is publicized in both English and Spanish. All marketing materials include information identifying the Sponsor’s commitment to fair housing laws and affirmative marketing policy, and are widely distributed. Equal opportunity is emphasized in written materials and oral presentations. A record is maintained by the Sponsor identifying what marketing materials are used, and when and where they are distributed.

Forms of marketing may include fliers, brochures, newspaper ads, articles and public service announcements. Fliers and brochures are distributed at local government buildings, other public buildings and through the mail, as well as to businesses that assist those not likely to apply without special outreach.

Advertisements and articles are published in newspapers that are widely circulated within the community.

Established working relationships with local lending agencies also aid in informing the public by facilitating the distribution of informational fliers to households seeking financial assistance for repairs that are unable to obtain conventional financing.

Informational meetings are offered to potential participants to explain Program requirements. Often, minimal formal outreach efforts are required as the need for assistance generally exceeds funds available. However, marketing measures are actively performed in order to maintain a healthy interest list.

Characteristics on all applicants and participants are collected and compared with the Sponsor’s demographics. Should the Sponsor find that there are underserved segments of the population, a plan to better serve them will be developed and implemented.

MARKETING FORMS
Fliers
Brochures
Newspaper Ads and Articles
Public Service Announcements
Public Informational Meetings

MARKETING VENUES
Local Government Buildings
Local Public Services Buildings
Private Businesses
Lending Agencies
Real Estate Offices
Newspaper
Radio
Mail
January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 39 ATTACHMENT E

RESIDENTIAL ANTI-DISPLACEMENT AND TEMPORARY RELOCATION PLAN Version 2
The Housing and Community Development Act of 1974, as amended, and the National Affordable Housing Act of 1990, require all grantees of Community Development Block Grant (CDBG) funds or Home Investment Partnership (HOME) funds to follow a written Residential Anti-displacement and Relocation Assistance Plan (Plan) for any activities which could lead to displacement of occupants whose property is receiving funds from these or other federal funding source. Having been developed in response to both aforesaid federal legislations, this Plan is intended to inform the public of the compliance of the CITY OF EXETER (Sponsor) with the requirements of federal regulations 24 CFR section 570.606 under state recipient requirements, Section 104(d) of the Housing and Community Development Act of 1974, and 24 CFR section 92.353 and other parts of the HOME federal regulations. The Plan will outline reasonable steps, which the Sponsor will take to minimize displacement and ensure compliance with all applicable federal and state relocation requirements. The Sponsor’s governing body has adopted this plan via a formal resolution.

This Plan will affect rehabilitation activities funded by the U.S. Department of Housing and Urban Development (HUD) under the following program titles: HOME, CDBG, Urban Development Action Grant (UDAG), Special Purpose Grants, Section 108 Loan Guarantee Program, and such other grants as HUD may designate as applicable, which take place with in the Sponsor’s jurisdiction limits.

The Sponsor will provide permanent relocation benefits to all eligible “displaced” households either owner-occupied or renter-occupied units which are permanently displaced by the housing rehabilitation program (See Section E below.). In addition, the Sponsor will replace all eligible occupied and vacant occupiable low-income group dwelling units demolished or converted to a use other than low income group housing as a direct result of rehabilitation activities. This applies to all units assisted with funds provided under the Housing and Community Development Act of 1974, as amended, and as described in the Federal Regulations 24 CFR section 570.496(a), Relocation, Displacement and Acquisition: Final Rule dated July 18, 1990 (Section 104(d)) and 49 CFR Part 24, Uniform Relocation Assistance (URA) and Real Property Acquisition Regulations Final Rule and Notice (URA) dated March 2, 1989.

All Sponsor programs/projects will be implemented in ways consistent with the Sponsor’s commitment to Fair Housing. Participants will not be discriminated against on the basis of race, color, religion, age, ancestry, national origin, sex, familial status, or handicap. The Sponsor will provide equal relocation assistance available 1) to each targeted income group household displaced by the demolition or rehabilitation of housing or by the conversion of a targeted income group dwelling to another use as a direct result of assisted activities; and 2) to each separate class of targeted income group persons temporarily relocated as a direct result of activities funded by HUD programs.

A. Minimizing Permanent Displacement and Temporary Relocation Resulting from Housing Rehabilitation or Reconstruction Activities
Consistent with the goals and objectives of activities assisted under the Act, the Sponsor will take the following steps to minimize the displacement of persons from their homes during housing rehabilitation or reconstruction funded by HUD programs:

1. Provide proper notices with counseling and referral services to all tenants so that they January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 40 understand their relocation rights and receive the proper benefits. When necessary assist permanently displaced persons to find alternate housing in the neighborhood.

2. Stage rehabilitation of assisted households to allow owner-occupants and/or tenants to remain during minor rehabilitation.

3. Encourage owner investors to temporarily relocate tenants to other available safe and sanitary vacant units on the project site area during the course of rehabilitation or pay expenses on behalf of replaced tenants.

4. Work with area landlords, real estate brokers, and/or hotel/motel managements to locate vacancies for households facing temporary relocation.

5. When necessary, use public funds, such as CDBG funds, to pay moving costs and provide relocation/displacement payments to households permanently displaced by assisted activities.

B. Lead Based Paint Mitigation Which Causes Temporary Relocation:

On September 15, 2000, the Final Rule for Lead Based Paint Hazard Control went into effect. Among other things, it requires that federally-funded rehabilitation must use safe work practices so that occupants and workers can be protected from lead hazards. At no time should the tenantoccupant(s) be present in work areas or designated adjacent areas while LHC activities are taking place in any dwelling unit interior, common area, or exterior. As such, occupants may not be allowed to remain in their units during the time that lead-based paint hazards are being created or treated. Once work that causes lead hazards has been completed, and the unit passes clearance, the occupants can return. The tenant-occupants may not reoccupy a work area or adjacent area until post-lead hazard reduction clearance standards have been achieved and verified with laboratory results. The final rule allows for certain exceptions: programs:

1. The work will not disturb lead-based paint, or create dust-lead or soil-lead hazard; or

2. The work is on exterior only and openings are sealed to prevent dust from entering the home, the work area is cleaned after the work is completed, and the residents have alternative lead free entry; or

3. The interior work will be completed in one period of less than 8-daytime hours and the work site is contained to prevent the release of dust into other areas of the home; or

4. The interior work will be completed within five (5) calendar days, the work site is contained to prevent the release of dust, the worksite and areas within 10 feet of the worksite are cleaned at the end of each day to remove any visible dust and debris, and the residents have safe access to kitchen and bath and bedrooms.

If temporary relocation benefits are not provided because the Sponsor believes that the project meets one of the above criteria, then proper documentation must be provided in the rehabilitation project file to show compliance. It is up to the Sponsor to ensure that the owner-occupant or tenant in the project does not get impacted by lead paint mitigation efforts. In most cases where lead paint mitigation is taking place, occupants (tenants or owners) will be strongly encouraged to relocate even for just a few days until a final lead clearance can be issued by a certified lead based paint assessor.

Occupants who are temporarily relocated because of lead based paint mitigation are entitled to the January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet

City of Exeter Housing Rehabilitation Program Guidelines 41 same relocation benefits as those who are relocated because of substantial rehabilitation or reconstruction activities.

C. Temporary Relocation of Owner-Occupants:

Owner-occupants are not allowed to stay in units which are hazardous environments during lead based paint mitigation. When their home is having lead based paint mitigation work done which will not make it safe to live in, then they are eligible for temporary relocation benefits up to $5,000, which will be provided as a grant. In the same way, in a unit requiring substantial rehabilitation (with or without lead-based paint mitigation) which will not allow the family to access a bath or kitchen facility, or if the unit is being demolished and reconstructed, the family will be eligible for temporary relocation benefits up to $5,000, which will be provided as a grant. In no case shall the grant for temporary relocation exceed $5,000.

Owner-occupants will be encouraged to move in with family or friends during the course of rehabilitation, since they are voluntarily participating in the Program. The housing rehabilitation loan specialist and/or the rehabilitation construction specialist will complete a temporary relocation benefits form (See Appendix C) to document that the owner-occupant understands that they must relocate during the course of construction and what benefits they wish to be reimbursed for as part of their relocation.

D. Temporary Relocation of Residential Tenants:

If continued occupancy during rehabilitation is judged to constitute a substantial danger to health and safety of the tenant or the public, or is otherwise undesirable because of the nature of the project, the tenant may be required to relocate temporarily. The contract administrator or rehabilitation specialist will make determination of the need for temporary relocation. The temporary relocation period will not exceed 180 days. All conditions of temporary relocation will be reasonable. Any tenant required to relocate temporarily will be helped to find another place to live which is safe, sanitary and of comparable value and they have the first right to move back into the original unit being rehabilitated at the same rent or lower. He or she may move in with family and friends and still receive full or partial temporary assistance based on eligible cost incurred. The housing rehabilitation loan specialist and/or the rehabilitation specialist will ensure that each tenant-occupied unit under the Program will receive a General Information Notice (GIN) (as soon as possible after a loan application is received) and the tenant will receive a Notice of Non-displacement (after loan approval), and each tenant-occupied unit will have a temporary relocation benefits form completed for them. (See Appendix C). These notices will document that each tenant understands what their relocation rights are, and if they must relocate during the course of construction, that they receive the proper counseling and temporary relocation benefits.

A tenant receiving temporary relocation shall receive the following:

1. Increased housing costs (e.g. rent increase, security deposits) and

2. Payment for moving and related expenses, as follows:
a. Transportation of the displaced persons and personal property within 50 miles, unless the grantee determines that farther relocation is justified; b. Packing, crating, unpacking, and uncrating of personal property; January 27, 2026 Rewgular Meeting of the Exeter City Council Agenda Packet