Attachment No. 7- Appraisal Report CFD 113.pdf — Fontana City Council, October 13, 2026

APPRAISAL REPORT

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 113
(The Gardens Phase Two)
City of Fontana, San Bernardino County, California
(Appraisers’ File No. 2026-1318)
Prepared For
City of Fontana
8353 Sierra Avenue
Fontana, California 92335
Prepared By
Kitty Siino & Associates, Inc.
115 East Second Street, Suite 100
Tustin, California 92780

KITTY SIINO & ASSOCIATES, INC.

REAL ESTATE APPRAISERS & CONSULTANTS
September 22, 2026
Jessica Brown, Chief Financial Officer
City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
Reference: Appraisal Report
City of Fontana Community Facilities District No. 113 (The Gardens Phase Two) Southeast of Duncan Canyon Road and Cypress Avenue, Fontana, California Dear Ms. Brown:

At the request and authorization of the City of Fontana, we have completed an Appraisal Report for the City of Fontana Community Facilities District No. 113 (The Gardens Phase Two) (“Fontana CFD No. 113”) which consists of a portion of the Gardens community within the Arboretum master plan, located in the northern portion of the City of Fontana. The Gardens Phase Two includes a total of 388 proposed homes being built-out into four neighborhoods by two homebuilders. The first homebuilder is The New Home Company Southern California LLC, doing business as Risewell Homes (“Risewell Homes”) which is building out two neighborhoods including Trellis and Marigold. Trellis is proposed for 90 single family homes in a detached-triplex format while Marigold is proposed for 124 homes in a detached-alley loaded format. Risewell Homes is using TPG AG EHC III (NWHM) CA 2, L.P., a Delaware limited liability company (“TPG AG”) as a Landbank company for these two neighborhoods. Richmond American Homes of Maryland, Inc (“Richmond American”) is developing the neighborhoods of Iris and Flora. Iris is proposed for 88 detached homes in a cluster format while Flora is proposed for 86 homes, in an alley load/cluster format. Richmond American has been purchased by Sekisui House U.S. Inc. Out of the total 388 proposed homes within The Gardens Phase Two, 120 have closed to individual homeowners to date with an additional five in escrow. The remaining property is held by Richmond American, Risewell Homes and TPG AG. The builder or landbank-owned properties range from completed models and production homes to homes under construction to physically finished pads.

The valuation methods used in this report are the Sales Comparison Approach, a Discounted Cash Flow Analysis and a Mass Appraisal Technique as defined within this report. The fee simple estate of the subject property has been valued, subject to the Fontana CFD No. 113 special tax lien. This report is written with the hypothetical condition that the subject property is enhanced by the improvements and/or fee credits to be funded by the Special Tax Bonds of Fontana CFD No. 113. As a result of our investigation, the concluded minimum market value for the subject property is shown below.

The Gardens Phase Two:

Risewell Homes (35 pads & 16 houses) $ 14,326,560
TPG AG (142 pads) $ 31,302,856
Richmond American (38 pads & 37 houses) $ 27,745,624
Individual Owners (120 houses) $ 71,503,520
Total Aggregate Value CFD No. 113 $144,878,560
The values are stated subject to the Assumptions and Limiting Conditions of this report, the Appraiser’s Certification and as of August 7, 2026.
115 East Second Street, Suite 100, Tustin, California 92780 (714) 544-9978 - Phone, (714) 544-9985 – Fax, E-Mail: [email protected] Jessica Brown
City of Fontana
September 22, 2026
Page Two
Some supporting documentation concerning the data, reasoning and analyses may be retained in the appraiser’s files. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. This Appraisal Report is intended to comply with both the Uniform Standards of Professional Appraisal Practice (“USPAP” January 2024) and with the Appraisal Standards of the California Debt and Investment Advisory Commission (“CDIAC”). The appraiser is not responsible for unauthorized use of this report.

This letter of transmittal is part of the attached report, which sets forth the data and analyses upon which our opinion of value is, in part, predicated.

Respectfully submitted,
KITTY SIINO & ASSOCIATES, INC.

Kitty S. Siino, MAI
California State Certified General
Real Estate Appraiser (AG004793)

TABLE OF CONTENTS
Assumptions and Limiting Conditions............................................................................... i Hypothetical Condition .................................................................................................... iii Extraordinary Assumption ............................................................................................... iii Aerial Photo of Fontana CFD No. 113 (The Gardens Phase Two) .................................. iv Purpose of the Appraisal ................................................................................................ 1 The Subject Property ...................................................................................................... 1 Intended Use of the Report ............................................................................................. 2 Definitions ...................................................................................................................... 3 Property Rights Appraised ............................................................................................. 5 Effective Date of Value ................................................................................................... 5 Date of Report ................................................................................................................ 5 Scope of Appraisal ........................................................................................................ 5 Regional Area Map.......................................................................................................... 8 County of San Bernardino Area Description ................................................................... 9 City of Fontana Area Map & Description ....................................................................... 19 The Arboretum Specific Plan / Immediate Surroundings ............................................... 24 Community Facilities District No. 113 ........................................................................... 28 Subject Property Description ......................................................................................... 31 Inland Empire Housing Market ...................................................................................... 48 Highest and Best Use Analysis ..................................................................................... 59 Valuation Analysis and Conclusions ............................................................................. 64 Appraisal Report Summary ......................................................................................... 104 Appraiser’s Certification ............................................................................................. 105

ADDENDA
Fontana CFD No. 113 Boundary Map
Tract Map Nos. 20362 and Site Plans
California Fire Hazard Map
Discounted Cash Flow Analyses
Finished Lot Land Sales Map and Summary Chart
Improved Residential Sales Map and Summary Chart
Appraiser’s Qualifications
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ASSUMPTIONS AND LIMITING CONDITIONS

1. This report might not include full discussions of the data, reasoning and analyses that were used in the appraisal process to develop the appraiser’s opinion of value. Some supporting documentation concerning the data, reasoning and analyses may be retained in the appraiser’s files. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraiser is not responsible for unauthorized use of this report.

2. No responsibility is assumed for legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated in this report.

3. It is assumed that the subject property is subject to the special tax lien of Fontana CFD No. 113.

4. Responsible ownership and competent property management are assumed unless otherwise stated in this report.

5. The information furnished by others is believed to be reliable; however, no warranty is given for its accuracy.

6. All engineering is assumed to be correct. Any plot plans and illustrative material used in this report are included only to assist the reader in visualizing the property and may not be to scale.

7. It is assumed that there are no hidden or unapparent conditions of either property, subsoil or structures that would render them more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them.

8. It is assumed that there is full compliance with all applicable federal, state and local environmental regulations and laws unless otherwise stated in this report.

9. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless nonconformity has been stated, defined and considered in this appraisal report.

10. It is assumed that all required licenses, certificates of occupancy or other legislative or administrative authority from any local, state or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this report are based.

11. Any sketch or photograph included in this report may show approximate dimensions and is included only to assist the reader in visualizing the properties. Maps, photographs and exhibits found in this report are provided for reader reference purposes only. No guarantee regarding accuracy is expressed or implied unless _________________________________________________________________________________________________________ Appraisal Report
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otherwise stated in this report. No survey has been made for the purpose of this report.

12. It is assumed that the utilization of the land and improvements (if any) are within the boundaries or property lines of the property described and that there is no encroachment or trespass unless otherwise stated in this report.

13. The appraiser is not qualified to detect hazardous waste and/or toxic materials. Any comment by the appraiser that might suggest the possibility of the presence of such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such a determination would require investigation by a qualified expert relating to asbestos, urea-formaldehyde foam insulation or other potentially hazardous materials that may affect the value of the property. The appraiser’s value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value unless otherwise stated in this report. No responsibility is assumed for any environmental conditions or for any expertise or engineering knowledge required to discover them. The appraiser’s descriptions and resulting comments are the result of the routine observations made during the appraisal process.

14. Proposed improvements, if any, are assumed to be completed in a good workmanlike manner in accordance with the submitted plans and specifications.

15. The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings, if any, must not be used in conjunction with any other appraisal and are invalid if so used.

16. The Americans with Disabilities Act (“ADA”) became effective on January 26, 1992, and have been updated several times since then. The appraiser has made no specific compliance survey and analysis of the property to determine whether they conform to the various detailed requirements of the ADA, nor is the appraiser a qualified expert regarding the requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the ADA. If so, this fact could have a negative effect upon the value of the property.

Since the appraiser has no direct evidence relating to this issue, a possible noncompliance with requirements of the ADA in estimating the value has not been considered.

17. It is assumed there are no environmental concerns that would slow or thwart development of the subject property and that the soils are adequate to support the highest and best use conclusions.

18. It is assumed that homebuyers and the homeowner’s associations within Fontana CFD No. 113 can obtain fire insurance. The property is within a recommended Very High Fire Severity Zone by CalFire. While fire breaks and fire roads have been incorporated into the development, recently insurance companies have been leaving California high fire zones. It is the appraiser’s understanding fire insurance is currently available on the subject homes. Due to the current insurance atmosphere in California, it is an extraordinary assumption that fire insurance will continue to be available.

19. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event, only with proper qualification and only in its entirety. Permission is given for this appraisal to be published as a part of the Official Statement or similar document for the Fontana CFD No. 113 special tax bonds.

HYPOTHETICAL CONDITION

1. It is assumed that all improvements and benefits to the subject property, which are to be funded by the City of Fontana CFD No. 113 Special Tax Bond Proceeds are completed and in place.

EXTRAORDINARY ASSUMPTION

1. It is assumed that the sales information and remaining development costs as reported by the builder and summarized in the report are correct. Regarding sales, we have reviewed samples of closed sales against public record when available; however, we have not reviewed escrow documents on each sale. Regarding costs, we have not received detailed remaining land development costs and fees and are relying on the builder and their representatives as we are not experts in the field of construction estimation. If actual costs differ, it may change the value conclusions. _________________________________________________________________________________________________________ Appraisal Report
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PURPOSE OF THE APPRAISAL
The purpose of this appraisal report is to estimate the value of the fee simple interest of the subject property, subject to the special tax lien of Fontana CFD No. 113.

THE SUBJECT PROPERTY
The subject property consists of 388 proposed single-family homes being developed into Phase Two of the community known as The Gardens within the master planned community known as The Arboretum in the City of Fontana (“City”). The Gardens Phase Two is located at the southeast corner of Duncan Canyon Road and Cypress Avenue.

The lands are being built into four neighborhoods, two by Risewell Homes and two by Richmond American. Trellis by Risewell Homes is proposed for 90 detached triplex homes (with one model upstairs over the three, two-car garages) with sizes ranging from 1,530 to 1,667 square feet, and Marigold by Risewell Homes is proposed for 124 detached alley-loaded homes with sizes from 1,656 to 1,979 square feet. Iris by Richmond American is proposed for 88 cluster format detached homes with sizes from 1,750 to 1,950 square feet while Flora by Richmond American is proposed for 86 cluster format detached homes with sizes from 1,850 to 2,120 square feet.

The Gardens Phase Two is encompassed by a portion of Tract Map 20362 along with subsequent condominium maps on Lots 1 through 4 of Tract 20362, which subdivide the property into 388 residences. Risewell uses a land bank company (TPG AG) to fund the lots with options to purchase them back at certain intervals. The lots vary in status from completed models and production homes, to homes under construction to generally finished lots/pads. The description, ownership and condition of the lands are detailed in the chart on the following page.

Units
Owner Product / Condition / Status
Trellis (Detached Triplex) Units 1-90 on Lot 2 of Tract 20362 Units 1-7 and 19-23 12 Individuals Completed Homes
Units 61-63 3 Risewell Model Homes (0 in escrow)
Units 24-30 7 Risewell Homes over 95% (3 in esc)
Units 8-15 and 31-33 11 Risewell Homes Under Construction (none in escrow)
Units 16-18 3 Risewell Finished Pads
Units 34-60 and 64-90 54 TPG AG Finished Pads
Subtotal Trellis 90
Marigold (Condo Lots Detached) Units 1-124 on Lot 1 of Tract 20362 Units 16-22 and 25-26 9 Individuals Completed Homes
Units 109-112 4 Risewell Model Homes
Units 23-24 2 Risewell Homes over 95%
None 0 Risewell Homes Under Construction
Units 1-2, 7-15, 27-34 and 123-124 21 Risewell Finished Pads Units 3-6, 35-108 and 113-122 88 TPG AG Finished Pads
Subtotal Marigold 124
Iris (Condo Lots Detached) Units 1-88 of Lot 3 of Tract 20362 Units 1-10, 12-17, 19-35, 49, 52-56, 58-
59, 61, 63-64, 67-69, 73-74 and 78
50 Individuals Completed Homes
Units 43, 46-48 4 Richmond American Model Homes
Units 11, 18, 57, 60, 62, 65-66, 70-72,
75-7750-51,
15 Richmond American Homes over 95% (1 in esc)
None 0 Richmond American Homes Under Construction
(none in escrow)
Units 36-42, 44-45 and 79-88 19 Richmond American Finished Pads Subtotal Iris 88
Flora (Condo Lots Detached) Units 1-86 on Lot 4 of Tract 20362.

Units 14, 16-17, 19, 22, 24, 26-29, 31-
38, 40, 42, 44, 48-51, 54-63, 65-78
49 Individuals Completed Homes
Units 2-3, 10-11 4 Richmond American Model Homes
Units 15, 18, 23, 25, 30, 39, 41, 43, 45-
47, 52-53 and 64
14 Richmond American Homes over 95% (1 In escrow)
None 0 Richmond American Homes Under Construction
Units 1, 4-6, 7-9, 12-13, 20-21 and 79-
86 19 Richmond American Finished Pads
Subtotal Flora 86
TOTAL CFD No. 113 388

INTENDED USE OF THE REPORT
It is the appraiser’s understanding that the client, the City of Fontana, will utilize this report in disclosure documents related to the sale of the Fontana CFD No. 113 Special Tax Bonds. This report may be included in the Official Statement or similar documents to be distributed in connection with the marketing and offering of the bonds. It is the appraiser’s understanding that there are no other intended uses of this report.

DEFINITIONS
Market Value
The term “Market Value” as used in this report is defined as:
"The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

1. buyer and seller are typically motivated;

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

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

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

5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.”1
Inherent in the Market Value definition is exposure time or the time the subject property would have been exposed on the open market prior to the appraisal in order to sell at the concluded values. In the case at hand and considering current market conditions, the exposure time for each individually owned property or each builder-owned property or investor-owned property (TPG AG), in a bulk sale, is less than one year.

Finished Lot/Pad
The term “Finished Lot/Pad” is defined as:
“A parcel which has legal entitlements created by a recorded subdivision or condominium map, whose physical characteristics are a fine graded level pad per lot/pad with infrastructure contiguous to each individual lot/pad, asphalt paved roads and the necessary utilities. This term assumes the payment of all applicable development fees with the exception of building permit and plan check fees.”
Minimum Market Value
The term “Minimum Market Value” as used in this report is defined as:
1 The Appraisal of Real Estate, 13th Edition
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“The base market value of a new home. That is, most buyers purchase some upgrades, options and/or lot premiums when purchasing a new home.

The sales price for the new home typically includes the base price for the plan, plus any upgrades, options or lot premiums, less concessions, if any, which were given or paid for by the builder. The concluded minimum market value is for the base value of the plan only, not taking into consideration any upgrades, options or premiums and taking into consideration all concessions and incentives, including financing incentives.” Mass Appraisal Technique
The term “Mass Appraisal” as used in this report is defined as:
“The process of valuing a universe of properties as of a given date using standard methodology employing common data and allowing for statistical testing”2
In the case at hand, the statistical testing included reviewing all original builder sales and reviewing the Multiple Listing Service (“MLS”) for any resales and/or current listings of each plan type. In addition, we have determined the actual range of sales prices for each plan type which will be utilized in the valuation process. The search of the MLS resulted in one home currently listed for resale and no resale of homes at this time.

Hypothetical Condition
The term “Hypothetical Condition” is defined by USPAP as:
“A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis” The Hypothetical Condition within this report is that subject property is enhanced by the improvements and/or fee credits to be funded by bonds issued by Fontana CFD No. 113.

Extraordinary Assumptions
The term “Extraordinary Assumption” is defined by USPAP as:
“An assignment specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions”
2 USPAP 2024 Edition
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The Extraordinary Assumption within this report is that the sales information and the cost information received from the builders and/or their representatives are true and accurate.

Regarding the sales information, we have reviewed sample closings against public record and the information appears reasonable, however we have not reviewed escrow documents on the sales. Regarding costs, we have received a high summarized cost with no detail to review from the builder. We are not experts in the field of cost estimating. It should be noted that these costs were relied upon for the value conclusion and, if the remaining costs differ, it may change the value conclusion.

PROPERTY RIGHTS APPRAISED
The property rights being appraised are of a fee simple estate interest, subject to easements of record and the special tax lien of Fontana CFD No. 113. The definition of “fee simple estate” is defined as:
“absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.”3

EFFECTIVE DATE OF VALUE
The subject property is valued as of August 7, 2026.

DATE OF REPORT
The date of this report is September 22, 2026.

SCOPE OF APPRAISAL
As previously stated, the purpose of this appraisal is to report the appraiser’s best estimate of the market value for the subject property, Fontana CFD No. 113, which is known as Phase Two of The Gardens within the master plan known as The Arboretum.

Risewell Homes and Richmond American are the builders and are actively marketing four neighborhoods. The Gardens Phase Two offers mostly two-story floorplans which are 3 The Appraisal of Real Estate, 13th Edition
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generally detached, ranging in size from 1,530 to 2,120 square feet with product types ranging from one unit upstairs over three, two-car garages to single-family detached homes on condominium lots. There are a total of 388 proposed homes within The Gardens Phase Two. This appraisal will be presented in the following format:
 County of San Bernardino Description
 City of Fontana Description
 The Arboretum Specific Plan / Immediate Surroundings Description  Brief Description of Fontana CFD No. 113
 Subject Property Description
 Inland Empire Residential Market Analysis
 Highest and Best Use Analysis
 Valuation Procedure, Analysis and Conclusions
 Appraisal Report Summary
In valuing the subject property, the value estimates will be based upon the highest and best use conclusion, using the Sales Comparison Approach. The Sales Comparison Approach to value is defined as:
“…a set of procedures in which a value indication is derived by comparing the property being appraised to similar properties that have been sold recently, then applying appropriate units of comparison and making adjustments to the sales prices of the comparables based on the elements of comparison. The Sales Comparison Approach may be used to value improved properties, vacant land or land being considered as though vacant; it is the most common and preferred method of land valuation when an adequate supply of comparables is available.”4 In the Sales Comparison Approach, market value is estimated by comparing properties similar to the subject that have recently been sold, are listed for sale or are under contract.

Neither a cost or income approach was utilized as they were not considered necessary to arrive at credible results. In addition, we have utilized a mass appraisal technique which included reviewing all builder sales and searching the MLS for any resales and/or resale listings.

The due diligence of this appraisal report included the following:

1. Compiled demographic information and related that data to the subject property to perform a feasibility/demand analysis.
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2. Gathered and analyzed information on the subject marketplace, reviewed several real estate brokerage publications on historical and projected growth in the subject market and researched the micro- and macro-economic outlook within San Bernardino County and the Fontana area.

3. Inspected the subject property between July 1, 2026, and August 7, 2026.

4. Had the site flown by an aerial photographer on July 22, 2026.

5. Interviewed representatives from Risewell Homes and Richmond American, or their consultants, in order to obtain project information.

6. Reviewed preliminary title reports on the subject property.

7. Reviewed The Arboretum Specific Plan, the controlling land use document on the subject property.

8. Searched the area for relevant comparable residential land sales, inspected and verified each sale with a buyer or seller or broker familiar with the transaction.

9. Searched the area for relevant comparable new home residential projects, including sales prices and concessions, and interviewed representatives from each comparable project.

10. Reviewed the sales brochures and websites for the subject communities.

11. Reviewed developer sales information on each home within each neighborhood in the community along with reviewing public record on sample lots in each community.

12. Reviewed Multiple Listing Service information to determine if there are any resales, pending resales or listings of resale homes.

REGIONAL AREA MAP
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COUNTY OF SAN BERNARDINO AREA DESCRIPTION
Location
The subject property is located in the southwestern portion of San Bernardino County, in the northern most portion of the City of Fontana, at the southeast corner of Duncan Canyon Road and Cypress Avenue.

San Bernardino County (the “County”) is the largest county in the United States by area containing over 20,100 square miles, and includes large expanses of undeveloped deserts, valleys, canyons and mountains with mountains and deserts comprising about 90 percent of the acreage. The County is a major beneficiary of outward urban pressure from Los Angeles, Orange and Riverside Counties. Although located at the periphery of most urban activity in Southern California, the southwestern portion of San Bernardino County has been a major growth area and is perceived by most observers as an area expected to continue to grow. Riverside and San Bernardino Counties are considered distinct from Los Angeles and Orange Counties and belong to the same Metropolitan Statistical Area (“MSA”). This area, consisting of San Bernardino and Riverside Counties, is commonly referred to as the Inland Empire.

Transportation
The subject property is situated about one mile east of I-15, approximately 1.5 miles north of the 210 Freeway, five miles south of the intersection of I-15 and I-215, and about 6.5 miles north of Interstate 10 (“I-10”). The I-15 and I-10 are the nearest interstates providing access to the subject from the employment areas of Orange, Los Angeles and Riverside Counties. From I-15 there is good access from Duncan Canyon Road, east under one mile to Cypress Avenue. I-15 travels in a northerly/southerly direction and provides access to Barstow and Nevada to the north and San Diego to the south. I-10 begins from the west in Los Angeles and provides access into Arizona to the east. In the vicinity of the subject, I-210 provides additional east/west access about two miles north of I-10 beginning in Santa Clarita in Los Angeles County and provides access near the City of San Bernardino. The subject is located about four miles north of the historical Route 66, the original Los Angeles to Chicago cross country route. _________________________________________________________________________________________________________ Appraisal Report
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The County is served by Amtrak and Metrolink as well as several rail-freight lines. The Ontario International Airport provides regional international air service and is located approximately ten miles southwest of the subject property. San Bernardino International Airport is located approximately 12 miles southeast of the subject. In addition, the County has extensive trucking corridors along the previously referred to interstates, highways and state freeways.

Population
The County has experienced population growth for several decades and is anticipated to continue to do so in the foreseeable future. Per the California Department of Finance, the January 1, 2026, County population was 2.216 million. This represents a one-year increase of 0.1 percent. This compares to an average annual growth rate over the past 16 years (2010 to 2026) of about 0.5 percent and an average annual population growth of the previous 20 years of 1.82 percent. Current projections for San Bernardino County per the California Department of Finance suggest the population is anticipated to reach approximately 2.240 by 2030 indicating an average annual increase of approximate 0.3 percent over the next four years. The forecasted population for 2030 was reduced from an estimated one percent annual growth rate predicted in 2024. Future growth is predicted to assume a more stable market than was seen prior to the Great Recession.

Economy
The U.S. economy has experienced challenging times in the past five years due to reactions from the COVID disruption, changes in the federal administration and most currently, the war with Iran. These economic challenges include significant inflation, volatile interest rates, banks’ instability, the unknowns on tariff agreements, oil prices and reaching an agreement on the debt ceiling which shut down the government in late 2025 for 43 days.

During COVID, the Federal, State, County and City Governments (“Governments”) originally shut down non-essential businesses and areas where social gatherings occur in order to slow the spread of the virus. This created a strain on small and large _________________________________________________________________________________________________________ Appraisal Report
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businesses alike. Restaurants and hotels were hit hard and travel reduced drastically as citizens were urged to stay home. Layoffs occurred with reports of 40 million people filing for unemployment in the first few months of the pandemic. The Governments attempted to curtail the job losses and hardships with the approval of over $5.6 trillion in COVID relief to our nation. In addition, the Federal Reserve Board (“Board”) reduced interest rates and started quantitative easing by buying bonds. This legislation helped shore up the U.S. economy; however, due to the significant amount of new money introduced into the economy, inflation began occurring at a rate not seen for 40 years. In June 2022, the national inflation rate hit a peak of 9.1 percent with the current (July 2026) rate at 3.4 percent. This compares to a 1.4 percent annual inflation rate for 2020, a 4.7 percent annual rate for 2021, an 8.0 percent annual rate for 2022, a 4.1 percent annual rate for 2023, a 2.9 percent annual rate for 2024 and a 2.7 percent annual rate of 2025. This compares to an average of 1.74 percent annual rate for 2010 until 2020. Thus far in 2026 the inflation rate has been volatile, mostly due to the increase in oil prices due to the Iran war going from 2.4 percent in January and February, up to 3.3% in March, 3.8 percent in April, 4.2 percent in May and down to 3.4 percent in July. The Iran war was thought to be reaching a conclusion in June which brought oil prices down, however economists then thought inflation would rise in July, however it actually dropped 0.1 percent from June.

Whether it was a result of world turmoil, supply chain issues due to the COVID disruption, additional money entering the economy or tariffs, inflation hit Americans hard.

In an effort to curb inflation, the Board began raising interest rates. Between March 2022 and August 2023, there were eleven interest rate increases rising the Federal Funds Rate (“FFR”) from 0.25 – 0.50 percent to 5.25 – 5.50 percent. The Board kept rates at 5.25 –

5.50 percent from September 2023 until September 2024 with three decreases occurring in late 2024, and three decreases in late 2025 bringing the FFR to 3.50 – 3.75 percent.

Thus far in 2026, they have kept the rate steady, however they are closely watching all signs of the economy. The head of the Federal Reserve has recently changed; however, it is too early to tell what the new chairman will do. Wall Street currently is anticipating up to two increases by the end of the year. While the FFR increases appeared to help slow inflation, the quick, significant increases strained bank balance sheets and created _________________________________________________________________________________________________________ Appraisal Report
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significant volatility on home mortgages. The FFR increases, which occurred between March 2022 and August 2023, increased a typical 30-year fixed mortgage rate from 2.98 percent as of November 10, 2021, to the high of 7.79 percent as of October 2023. The rates hit a low in February 2026 at 5.98 percent but since the Iran war began, the rate has increased to 6.69 percent as of August 6, 2026 (per Federal Reserve Economic DataSt. Louis). Mortgage rates have generally ranged between 6.0 and 6.75 percent since October 2025. This steep increase which occurred in mortgage interest rates significantly affected the real estate market. The first-time homebuyer pool grew up thinking interest rates were always sub-four percent and are still reeling from shock over the recent 6.0 to

7.0 percent rates. Existing homeowners with 3-4 percent mortgages are not moving as they typically would which has put pressure on pricing as supply is lower than in a normal market. In order to combat the unaffordability of these higher rates on new homes, many homebuilders have been “buying down” the mortgage rates in order to keep new home sales going. This will be discussed further in the Inland Empire Housing Market section later within this report.

The COVID disruption to the economy also caused extreme volatility in the stock market with the Dow Jones Industrial Average (“DJIA”) dropping from 29,398 in February 2020 to 19,174 in March 2020, a drop of 37 percent. Government interventions resulted in a bounce back in the DJIA to 27,111 by June 2020 with the stock market then climbing up to a peak of 36,799 in January 2022. In February 2022, Russia began invading Ukraine which caused volatility in world economics followed by Israel declaring war on Hamas in October 2023 resulting in a 20 percent drop in 2022 (28,150) and a low in 2023 to 32,417.

The FFR rate increases began helping to stabilize the economy (reducing inflation) to a point where analysts began predicting decreases in the FFR which occurred in late 2024 and 2025 which helped boost the stock market, mostly due to the NASDAQ (tech heavy index) increasing about 50 percent, partially due to the race for Artificial Intelligence (“AI”) with a new high of 54,349 on August 4, 2026. Current concerns on the U.S. economy include the inflation, global wars, tariff uncertainties and the debt limit which can only be increased through government approvals.
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The significant increase in mortgage rates between 2022 and 2023 is just one part of the puzzle affecting the impact of new housing on the broader economy. Additional risks include homebuilders trying to find balanced inventory levels, supply chain issues, both wage and price increases, unknown tariffs on building materials, construction workers immigration status, the affordability index at all-time lows, consumer confidence and persistent inflation. Over the past 25 years, the Inland Empire economy saw significant cycles with home prices almost doubling from 1995 to 2005, then falling by over 50 percent during the Great Recession, taking prices back to 2002 levels in 2011. Home values appeared to hit bottom in 2009 then remained essentially flat for two to three years with the majority of the Inland Empire housing market seeing an improvement beginning in mid-2012.

Contrary to homebuilders’ original thoughts of a slowdown due to the COVID pandemic, new home buyers stepped up in the spring of 2020 and new home sales were significantly higher during the second half of 2020 versus the previous year and continued extremely strong throughout 2021. This exceptional activity in new home sales was the one bright spot in the COVID disruption and is thought to be due to several factors, including: a tight supply of resale homes; historically low interest rates; millennials finally buying homes; and the work from home factor which began during the pandemic and allowed residents to live in more suburban areas without long commutes. As rates began increasing in early 2022, there was a significant slowdown in existing home sales as homeowners did not want to give up their low-interest mortgages. The scarcity of existing home listings put pressure on pricing as the demand for homes continued with median home prices in the Inland Empire increasing about 50 percent from 2019 levels into 2024. In 2025 incentives began rising and thus far in 2026, many areas are showing a slight decrease in pricing.

While most jobs have come back, job losses were significant during the COVID recession as the Nation’s unemployment rate went from 3.5 percent in February 2020 to 14.4 percent in April 2020 with decreases through the fall season of 2020. Since that time, the national unemployment rate generally ranged between 3.5 percent and 4.5 percent between December 2021 and today with the June 2026 National unemployment rate at _________________________________________________________________________________________________________ Appraisal Report
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4.4 percent. The unemployment rate for the MSA was estimated at 5.3 percent (as of June 2026, most recent available per the Employment Development Department). This reflects a decrease from the peak during the Great Recession of 15.1 percent in 2010 and a decrease from the peak during COVID of 14.9 percent. As of June 2026, San Bernardino County’s unemployment rate was 5.2 percent, and Riverside County had a

5.4 percent unemployment rate. The current unemployment rate for the MSA of 5.3 percent is similar to the California rate at 5.2 percent and higher than the June 2026 National rate of 4.4 percent. Below is a table comparing San Bernardino County’s unemployment rate to the unemployment rates of the surrounding counties as of June 2026.

Jurisdiction As of Unemployment Rate*
Los Angeles County June-2026 5.3%
Riverside County June-2026 5.4%
San Bernardino County June-2026 5.2%
Orange County June-2026 4.1%
San Diego County June-2026 4.4%
Source: State of California E.D.D.; *Not Seasonally Adjusted The latest UCLA Anderson Forecast (“Forecast”) was June 3, 2026, with a finding that the economy is confronting another inflationary shock driven by the war in Iran. In the last Forecast in March 2026, the essence was that tariff-driven inflation had appeared to peak and the labor market began to stabilize, however with the Strait of Hormuz closed down due to the war in Iran, rising energy prices are creating a new source of pressure on households, businesses and the Federal Reserve. The National Forecast states “the 2020s are beginning to look eerily similar to the 1970s”, a decade marked by high inflation, slow growth and the reemergence of the term “stagflation”. The current Forecast does not predict a repeat of the 1970s but the comparison reflects the sequence of supply shocks this economy as experienced since 2020: pandemic-era supply-chain disruptions, the war in Ukraine, tariffs, and now the war in Iran. The primary economic impact of the oil shock is inflation. CPI inflation rose from 2.4 percent in January and February, to 3.3 percent in March and 3.8 percent in April. Since the Forecast, the May 2026 inflation rate came out _________________________________________________________________________________________________________ Appraisal Report
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at 4.2 followed by a 3.5 percent rate in June and 3.4 percent rate in July 2026. The Forecast states inflation should peak at 4.5 percent by the end of 2026. The labor market has held up better than expected but remains more stagnant than strong. They anticipate unemployment to increase to 4.5 percent (national rate) by the end of the year (currently

4.4 percent). Regarding the Federal Reserve, they anticipate the central bank to hold rates steady for the remainder of the year. GDP growth grew at 2.1 percent in 2025 with the same 2.1 percent growth anticipated this year followed by a weaker 1.8 percent growth rate in 2027. The main counterweight for higher inflation and slower growth is the surge in artificial intelligence investment. Combined with tax cuts, this investment is anticipated to help the U.S. economy absorb the oil shock without falling into a recession.

In summary, the national economy is being tested with another supply shock with the central risk shifted from tariff-driven inflation to energy-driven inflation. The baseline forecast does not call for a recession, but it does anticipate slower growth, higher inflation and a Federal Reserve with little room to cut interest rates.

The California Forecast describes a state economy that remains bifurcated. California continues to outperform the U.S. in output and income growth, but employment remains weak and uneven. The bifurcation is not geographic, but sectoral, with AI, aerospace and other tech on one side, and the rest of the economy on the other. Increased demand for commercial aircraft, defense goods and space products is expected to continue into late 2026, 2027 and 2028. At the same time, California’s labor market remains weak with an over 5.0 percent unemployment rate for over 27 months (currently at 5.2 percent). The logistics sector had been a large part of the employment growth over the past few years is anticipated to show little growth in 2026 and 2027 due to lower consumer demand, higher fuel costs and supply chain interruptions. Housing remains a major constraint with new home permits remaining relatively flat at around 110,000 new units over the past year, significantly below what is needed to address the State’s housing affordability problem. The Forecast estimates 115,000 new permits for the 2026 year increasing up to 122,000 new permits in 2028. It should be noted that these estimates are significantly lower than the Forecast estimates of one year ago.
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The California Forecast includes estimated unemployment rates of 5.5 percent for 2026,

5.1 percent for 2027 and 4.2 percent for 2028. This compares with real personal income growth estimated at 2.3 percent for 2026, 2.4 percent for 2027 and 2.5 percent for 2028.

In summary, California continues to benefit from AI, aerospace and high-productivity sectors, but its labor market remains weak and its exposure to fuel prices, logistics disruption, deportations and housing constraints makes the outlook weaker than it was three months ago.

As a final indicator of overall economic activity for the region, we have reviewed the rise and fall of TEUs (Twenty-foot Equivalent Units – i.e., containers) being processed in the local ports. This is especially important for the Inland communities, as it represents much of the growth in development of West Coast distribution centers and warehouses in the Inland Empire linked to supply-chain nodes in the Pacific Rim. The chart below shows TEU activity at the Port of Long Beach. Generally, there had been increases since 2009 except for slight dips in 2016, 2019, 2022 followed by an over 12 percent dip in 2023 due to cooling consumer demand. The calendar year 2024 saw an over 20 percent increase while in 2025 there was a 2.5 percent increase, back to a typical overall trendline. Thus far in calendar year 2026 the overall TEUs are running 1.7 percent above 2025, however it should be noted that the loaded outbound TEUs are showing a 10.7 percent increase compared to year to date in 2025.

Government
A Board of Supervisors oversees the County as the governing body of the County, certain County special districts, and the County Housing Authority. The Supervisors enact

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'09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 25 TEU's (millions) Year
Port of Long Beach TEUs
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ordinances and resolutions, adopt the annual budget, approve contracts, and appropriate funds, determine land use zoning for unincorporated areas, and appoint certain County officers and members of various boards and commissions. The Board of Supervisors is elected from five different districts within the County.

Education
The subject area is served by the Fontana Unified School District (“FUSD”). FUSD serves students with five high schools, seven middle schools, one preparatory academy (opening in 2026 with grades 6-9 and expanding to grades 6-12 over the next three years), and 30 elementary schools along with three alternative schools and one adult school. The subject is assigned to Sierra Lakes Elementary School, the newly opening Oak Grove Preparatory Academy (6-9th grade in 2026 and expanding to high school over the next three years), and Summit High School. Community Colleges are available near the subject at Chaffey College in Rancho Cucamonga (seven miles west), at Chaffey College’s Fontana campus, (five miles south), and San Bernardino Valley College (10 miles southeast). Higher education is available approximately seven miles east of the subject at California State University San Bernardino, about 15 miles southeast is University of California at Riverside, 15 miles southwest in the private Claremont Colleges (which include Claremont McKenna College, Pitzer College, Harvey Mudd College, Pomona College, and Scripps College) and 22 miles to the southwest at Cal Poly Pomona.

Conclusion
Population in the County has increased over the past 25 years with predictions for continued population growth. The Nation’s economy has been slowing after the Board increased the FFR by over five percent to fight historical inflation which began during COVID. One bright spot during COVID was housing; the region’s relative affordability and low interest rates, coupled with the rising prices in the coastal market and the demand for housing, set up a new housing boom. This was followed by a significant drop in sales due to increasing mortgage rates and existing homeowners being unwilling to give up their low-rate mortgages. Current concerns for the Inland Empire economy include stubborn _________________________________________________________________________________________________________ Appraisal Report
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inflation, the high prices of homes, higher interest rates, supply chain issues, and global wars, which are all creating volatility in both local and global financial markets. How long the Iran war will go on and what it will do to the economy is unknown at this time. In conclusion, the County is expected to continue to grow in population due to its Southern California location, the availability of land, and the relatively lower land and housing prices in comparison to adjacent Orange, Los Angeles, Riverside and San Diego Counties.

CITY OF FONTANA DESCRIPTION
General Area
The subject property is located in the northern portion of the City of Fontana (“City”) in southwestern San Bernardino County. The City is situated at the base of the San Gabriel Foothills, east of the cities of Rancho Cucamonga and Ontario, north of Jurupa Valley, west of the City of Rialto and the community of Bloomington, and south of the San Bernardino Mountains. The City encompasses an estimated 43 square miles with generally the northern border the San Gabriel Mountains and the southern border the Jurupa Mountains. The black star on the below map shows the approximate location of Fontana CFD No. 113 within the City limits.
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History
Fontana was founded in 1913 and is the second largest city in San Bernardino County and the 20th largest city in the State of California. The area was originally a rural farming community with citrus orchards, vineyards and chicken ranches that ran along U.S. Route 66 which is now known as Foothill Boulevard. The historic Route 66, which was built in 1926 to connect Los Angeles to Chicago, is a commercial corridor that runs east/west through the City. During World War II, Henry J. Kaiser opened the Kaiser Steel Mill near Fontana, the only steel mill west of the Mississippi River, which brought industrial employment to the area during the war. To provide for the worker’s health needs, Kaiser constructed the Fontana Kaiser Permanente Medical Facility which now employs more than 5,000 people. In 1994 the San Bernardino Freeway, which later became Interstate 10, was completed connecting Los Angeles to San Bernardino and making accessibility to Fontana relatively easy. This led to substantial growth as Fontana became an industrial hub for the County.

In the 1950s and 1960s the area of Fontana was home to a drag racing strip which served as a significant venue in the National Hot Rod Association (“NHRA”) circuit. In 1997, Roger Penske built the Fontana Speedway, also known as the Auto Club Speedway, which became a major NASCAR sanctioned tract. In 2006, the Auto Club Speedway opened a new NHRA sanctioned drag strip on site to resurrect Fontana’s drag racing heritage. The Auto Club Speedway was purchased by NASCAR in 2019 and hosts at least one major NASCAR race each year. It was recently announced the existing raceway will close due to the redevelopment of the lands; however, a smaller short-track will be developed on a portion of the lands keeping car racing in the area of Fontana.

Population
The January 2026 population of Fontana (per the California Department of Finance) was 219,774, which represents an increase of 0.6 percent over the previous year. The 2000 population of Fontana was 128,928, suggesting the population has increased over 70 percent over the past 26 years or an average rate of 2.03 percent per year. The City population represents 9.9 percent of the County population. The 0.6 percent growth _________________________________________________________________________________________________________ Appraisal Report
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compares to an increase of 0.1 percent in the County year-over-year and a decrease of

0.1 percent in the State year-over-year. The State hit a peak population of 39.54 million in 2020 with a drop in 2021 and 2022, a slight increase in 2023 and 2024, level in 2025 and a slight decrease in 2026 to 39.35 million. The City has several new home communities currently under construction, especially in the northern portion of the City.

Per the U.S. Census Bureau, the average household size in Fontana is 3.75 persons while in overall San Bernardino County the average household size is 3.26 persons. Over 78 percent of the population of the City are high school graduates and over 28 percent of the population of the City are under 18 years old.

Housing
According to the Southern California Association of Governments (“SCAG”), the City of Fontana has an estimated 57741 housing units as of 2024 (latest data available), with a growth rate of over 50 percent since the year 2000. This compares to the County’s housing growth rate of 22.2 percent during this time. This further illustrates Fontana’s growth spurt due to land available for development over the past 20 years. Fontana hosts over eight percent of the total number of households in the County. Over the past 25 years Fontana has gone from a high of 1,908 residential building permits in 2002, to a low of 209 in 2008, slowly increasing to 498 residential building permits in 2018, then increasing to 865 in 2020, 1,182 in 2021, 1,029 in 2022 and 1,185 in 2023 before dropping to 582 in 2024 and 700 in 2025. Per SCAG, over 66 percent of the housing stock is owner occupied and 34 percent are renters. Only 22 percent of the housing stock in the City was built before 1970 and 78 percent was built since that time. There are several residential projects currently under construction in Northern Fontana including the 484-unit community of Narra Hills; Ventana a mixed-use neighborhood proposed for 1,671 residential units along with retail, office and hotel uses; the Arboretum Specific Plan which is ongoing and will eventually create 3,500 new homes which includes the subject 388 units, Sierra Vista (132 new homes) and Citrus Lane (65 new homes), both by D.R.

Horton. There are additional planned projects according to the City. According to Redfin Market Trends, the May 2026 median home price in overall Fontana was $670,000 (median of 301 homes) which is 1.5 percent higher than one year prior while the median _________________________________________________________________________________________________________ Appraisal Report
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home price in North Fontana was $719,000 (median of 69 homes) which was 0.83 percent lower than one year prior.

Access
Fontana has good access with I-15 generally forming the northwest border of the City.

The 210 Freeway provides east-west access through the upper third of the City; Route 66 (also known as Foothill Boulevard) provides east-west access through the approximate middle of the City and the I-10 provides east-west access through the bottom third of the City. Major on/off ramps to the City from I-15 include Foothill Boulevard, Baseline Avenue, the 210 Freeway, Summit Avenue, Duncan Canyon Road and Sierra Avenue. On/off ramps from the 210 Freeway within the City include Cherry Avenue, Citrus Avenue and Sierra Avenue. Route 66/Foothill Boulevard has stop lights at major intersections while the major on/off ramps from I-10 in the City include Etiwanda Avenue, Cherry Avenue, Citrus Avenue and Sierra Avenue. Access to the subject is via I-15 to Duncan Canyon Road and east to Cypress Avenue at the subject. Additional access is via I-210 to Sierra, north to Casa Grande Avenue at the subject.

Economy
Existing commercial property within the City of Fontana is generally along the major thoroughfares including I-10, Route 66/Foothill Boulevard, Sierra Avenue and the 210 Freeway. There are several large shopping centers including Sierra Lakes Marketplace and Falcon Ridge Town Center, both which serve the subject property. There is planned retail at Citrus Avenue and Duncan Canyon Road in the Ventana Specific Plan. The City is home to an Amazon Distribution Center, a Target Distribution Center and a FedEx transfer station. The intersection of the I-10 and I-15 is a major industrial hub which extends into the City of Fontana with generally industrial use south of I-10. The Fontana Speedway is located along Cherry Avenue north of I-10 and the Metrolink station is located along Sierra Avenue.
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Summary
Fontana is located at the base of the San Gabriel Mountains and was incorporated over 100 years ago as a rural farming community. Kaiser Steel brought jobs to the area during World War II and the opening of the I-10 Freeway in the 1950s made it an easy commute to Los Angeles and Orange Counties. Almost 80 percent of the housing stock within the City was built since 1970. Between April 2020 and March 2022 residential building permits grew significantly after a lull in the first 10 years since the Great Recession. In 2022 permits slowed as sales decreased due to increasing mortgage rates. The area has excellent access via I-15. The area’s central location, reasonable land prices and the availability of land for development combine to make the location a prime area for future growth.

THE ARBORETUM SPECIFIC PLAN / IMMEDIATE SURROUNDINGS
The Arboretum Specific Plan was approved in October 2009 and amended in June 2021.

The Specific Plan covers 525.7 gross acres allowing for 3,532 residential units. The entire Specific Plan is shown on the land use map below with the subject property (a portion of The Gardens) and surrounding streets and social club, consisting of about 36 gross acres, outlined in yellow on the map below. The site has convenient freeway access to the I-15 via Duncan Canyon Road with both on and offramps to I-15.

The Arboretum is divided into four distinct villages which include The Meadows, The Gardens, The Resort and the Arboretum. The Meadows is developed and sold out except for a 24-acre school site at the southwest corner of the planning area. The Gardens Phase Two is outlined in yellow above and includes the subject property with Phase One _________________________________________________________________________________________________________ Appraisal Report
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generally to the east and built-out. The Resort is located north of the Gardens while The Arboretum, which will contain a 10.7-acre park that will provide the heart of the overall Arboretum community, is located northwest. It appears both are at the beginning stages of land development. Per the Specific Plan, The Gardens has an overall average gross density of 7.8 dwelling units per acre. The subject Phase Two of the Gardens encompasses 36.4 acres and houses 388 dwelling units which equates to an overall density of 10.7 dwelling units per acre.

The entire Arboretum project is surrounded by Grapeland Street to the north, Sierra Avenue to the east, Casa Grande Avenue to the south, Citrus Avenue to the west and a high wire Edison easement to the northwest. North of Grapeland Street are vacant lands, the I-15 and Lytle Creek beyond which is the community known as Devore. West of Citrus Avenue are vacant lands and existing residential uses. South of Casa Grande Avenue are existing residences while east of Sierra Avenue are existing residences north of Duncan Canyon Road and large industrial buildings south of Duncan Canyon Road.

Below is the Gardens land use map per the Specific Plan. The subject is shown as G-1, G-2 (Marigold and Trellis by Risewell Homes) and G-3 and G-4 (Iris and Flora by Richmond American).
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Below is the site plan as shown on The Gardens marketing website which identifies the four subject neighborhoods.

The subject is generally along the east side of Cypress Avenue, south of Duncan Canyon Road. To both the east and south of Flora are existing homes while north of Duncan Canyon Road is vacant lands proposed for the Resort phase of the Arboretum. There is a strip of vacant undeveloped lands that is located south of Marigold/Trellis and north of Iris. The main pool and clubhouse for The Gardens is shown on the above map at the northeast corner of Cassava and Fieldcress Drives, however there are smaller community social areas in both Trellis/Marigold and Iris/Flora which also serve the subject communities. The Gardens at the Arboretum Clubhouse and meeting area includes basketball courts, pickleball courts, a dog park, a playground, a pool and clubhouse and a large grassy area along with several picnicking areas, one with a large shade cover.

The Gardens Clubhouse will serve all of the residents within The Gardens.

Within a mile west of the subject on the north side of Duncan Canyon Road is a luxury apartment complex which recently opened known as Vasari at Ventana. Ventana will eventually include residential, retail and commercial land uses. KB Homes recently _________________________________________________________________________________________________________ Appraisal Report
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purchased residential land in Ventana for a for sale project. Across I-15 the master planned community of Narra Hills is currently selling with four actively selling communities (however two are in the final sale stage), ranging from attached homes to single-family detached on 10,000 square foot minimum lots.

Schools that serve The Gardens include Sierra Lakes Elementary School, the newly opening Oak Grove Preparatory Academy (6-9th grade in 2026 and expanding to high school over the next three years), and Summit High School.

The City Council of the City of Fontana adopted a resolution of intention for Fontana CFD No. 113 (The Gardens Phase Two) on April 9, 2024.

The exterior boundaries of Fontana CFD No. 113 per the Proposed Boundary map are shown below.

Per the CFD Report, at time of formation, Fontana CFD No. 113 encompassed approximately 36.4 gross acres of which 25.3 are estimated to be taxable. There are 388 proposed single-family homes at time of report which is the same as the current mapping.

At time of the report, they were comprised of 388 detached condominium units ranging in size from 1,567 to 2,121 square feet while actual square footage is from 1,530 to 2,120.

Per the CFD Report, the types of facilities to be eligible for funding are streets, including grading, paving, curbs and gutters, sidewalks, street signalization and signage, _________________________________________________________________________________________________________ Appraisal Report
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streetlights and parkway and landscaping related thereto, sewers, storm drains, flood control facilities, fire protection facilities, police facilities, public facilities, landscaping, library facilities, park and recreational facilities, water distribution, treatment and storage facilities and land, rights-of-way, and easements necessary for any of such facilities. The types of public facilities proposed to be eligible to be purchased as completed facilities by CFD No. 113 are streets, including grading, paving, curbs and gutters, sidewalks, street signalization and signage, streetlights and parkway and landscaping related thereto, sewers, storm drains, water distribution, treatment and storage facilities and land, rights of way and easements necessary for any such facilities. The types of public services to be financed by CFD No. 113 are fire protection and suppression services, maintenance and lighting of parks, parkways, streets, roads and open space, flood and storm protection services and maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the City. Incidental expenses also included are the cost of planning and designing public facilities to be financed, including the cost of environmental evaluations of those facilities; the costs associated with the creation of CFD No. 113, issuance of bonds, determination of the amount of taxes, collection of taxes, payment of taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 113; and, any other expenses incidental to the construction, completion, and inspection of the authorized work.

The estimated cost of public facilities at the time the Fontana CFD No. 113 Report was created were estimated as:

PUBLIC FACILITIES AMOUNT
Acquisition Facilities: $28,332,492(1)
Storm Drain Improvements $7,556,747
Landscape Improvements $6,414,403
Street Improvements $7,213,962
Traffic Signal Improvements $2,894,465
Sewer Improvements $1,445,003
Water System Improvements $2,562,451
Right-of-Way Acquisition $245,461
Other Public Facilities: $8,753,540(2)
Water System Capacity Improvements $7,460,557
Circulation Facility Improvements $546,393
Police Facility Improvements $183,136
Public Facility Improvements $139,028
Fire Facility Improvements $63,632
Library Facility Improvements $38,412
Additional Circulation Facility Improvements (3) $322,382 Advance and Reimbursement Agreement Fee $1,000,000
TOTAL ESTIMATED COSTS $38,086,032
(1) Estimates provided by Project Developer and subject to review and confirmation. (2) Estimated amount of permit fees subject to review and confirmation. (3) Represents additional circulation facilities per Second Amendment to Development Agreement. _________________________________________________________________________________________________________ Appraisal Report
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The assigned Special Taxes per the CFD Report range from $3,198 to $4,604. In addition, CFD 113 is expected to finance the annual costs to provide fire protection and suppression services, maintenance and lighting of parks, parkways, streets, roads and open space, flood and storm protection services and maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the City. The Services Special Tax within CFD 113 has been established to pay for these public services at approximately $550 per detached condominium per year. These amounts are subject to change based on the actual need that arises as development progresses within CFD No. 113 and shall be subject to an annual increase as specified in the Rate and Method of Apportionment. The maximum bonded indebtedness for CFD No. 113 is $24,000,000.

Per the latest sources and uses of funds (dated September 10, 2026) for the proposed bond issuance, there will be an estimated $18,450,000 in Bond Par Amount and a Net Original Issue Discount of $218,625, along with previous Special Tax Collections of $533,144 for a total deposit of $18,764,519 with $17,011,984 going to the Improvement Fund, $1,302,071 in Debt Service Reserve Fund and Capitalized Interest Fund and $450,464 in Underwriter’s Discount and Cost of Issuance (all amounts subject to change).

A larger copy of the Fontana CFD No. 113 boundary map is located in the Addenda for your review.

SUBJECT PROPERTY DESCRIPTION
The subject property consists of 388 proposed units being developed as The Gardens Phase Two within four neighborhoods. The neighborhoods include Trellis and Marigold by Risewell Homes and Iris and Flora by Richmond American. Below we will describe each neighborhood under ownership.

Risewell Homes – Trellis and Marigold
Location: Southeast corner of Duncan Canyon Road and Cypress Avenue, Fontana, California
Legal Property
Description: Trellis - Lot 2 of Tract 20362, City of Fontana, County of San Bernardino, California – subdivided into 90 condominium units Marigold – Lot 1 of Tract 20362, City of Fontana, County of San Bernardino, California – subdivided into 124 Units
Property Owner: Trellis:

Individual Owners as to Units 1-7 and 19-23 of Lot 2 of Tract 20362.

Risewell Homes as to Units 8-18, 24-33 and 61-63, Lot 2 of Tract 20362 and TPG AG as to Units 34-60 and 64-90 of Lot 2 of Tract 20362.

Marigold:

Individual Owners as to Units 16-22 and 25-26 of Lot 1 of Tract 20362. Risewell Homes as to Units 1-2, 7-15, 23-24, 27-34, 109-112 and 123-124 of Lot 1 of Tract 20362. TPG AG as to Units 3-6, 35- 108 and 113-122 of Lot 1 of Tract 20362.

Assessor’s
Parcel Nos.: The San Bernardino County Assessor’s office does not have the maps for Trellis or Marigold available to the public at this time.

Property Taxes: We have not been able to review property taxes on any of the above assessor parcel numbers. Our review of the Assessor’s Office does not yet show any taxes on the subdivided parcels. It is an assumption of this report that the overall property taxes and special assessments are not over two percent.

Three-Year
Sales History: Per Risewell Homes representatives, The New Home Company Southern California LLC (dba Risewell Homes) purchased Lot 1 (Marigold) and Lot 2 (Trellis) together October 1, 2024 for $35,814,227 from North Fontana Investment Company, LLC (a related entity to Lewis). TPG AG EHC III (NWHM) CA 2, L.P., a Delaware limited liability company (a land bank company for Risewell Homes) took title to the property and Risewell Homes began taking _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 32
down pads as needed for construction. It is the appraiser’s understanding that they have completed take-downs of 72 total pads as of August 10, 2026. Per Risewell Homes representatives, the scheduled take-downs are anticipated to be completed in December 2027. Risewell Homes began closing homes within the subject property to individual owners in January 23, 2026, and has closed 21 houses (12 In Trellis and 9 in Marigold) between January 23, 2026, and August 7, 2026.

Size and Shape: Trellis is irregular in shape and contains 6.891 acres per Tract Map No. 20362.

Marigold is generally rectangular in shape and contains 10.835 acres per Tract Map No. 20362.

Zoning: We have reviewed a letter from the Planning Division of Fontana dated July 14, 2021, which states MCN 20-096 Specific Plan Amendment (SPA 20-005) which allows for a density transfer within The Gardens and introduction of two new housing products, Tentative Parcel Map 20362 is comprised of five parcels that will be subdivided to create lots for the development of residential units have all been approved, subject to the conditions of approval. Attached to the letter were the conditions of approval for the project.

Per the current City of Fontana General Plan and the current City of Fontana Zoning Map, the subject is shown as located within The Arboretum Specific Plan. Per the Arboretum Specific Plan adopted October 14, 2009, and amended June 2021, Tract Maps 20362 is designated as RMF (Residential – Multi-Family with 8.1-16.1 dwelling units an acre. The current City of Fontana Zoning Map is consistent with the General Plan.

Entitlements: Per the Arboretum Specific Plan, Trellis is shown as G2 and has entitlements for 98 units while Marigold is shown as G1 with entitlements for 100 units. Per the above referenced letter from the Planning Division, density transfers were allowed and Trellis has been approved for 90 total units while Marigold has been approved for 124 units. This results in a density of 13.06 dwelling units per acre for Trellis and a density of 11.44 dwelling units per acre for Marigold.

Both densities are within the allowed densities per the Zoning and General Plan. A copy of Tract No. 20362 along with the site plans are located in the Addenda for your review.

Homeowner’s
Association: Per Lewis Management Corporation, the master developer of The Arboretum, the Master HOA dues which apply to all units is $192 per month. In addition, there are additional assessments of $285 per _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 33
month for Trellis (attached/detached Triplex format) and $54 per month for Marigold (detached condominiums) which includes common driveways and landscaping. The overall HOA covers maintenance of the community gates, swimming pool, spa, barbeques, clubhouse and restrooms, community parks, as well as all walkways and community landscaping. The pool, spa, clubhouse and park areas were in excellent condition and were open for use.

Topography: The subject lands are generally level at grade of surrounding streets of Cavassa Drive, Cypress Avenue and Duncan Canyon Road, all which are improved at the site. In addition, the site has been graded into 214 residential lots and/or pads. Drainage appears to be within an engineered street drainage system that ties with surrounding lands to alleviate any drainage issues on the property. This is suggested by the City approvals for the construction of the homes.

Fire Hazard Zone: Per the City’s General Plan and Zoning Map, the site is within a fire overlay zone. Per the State of California’s Fire Hazard Map, the site is within a LRA (Local Responsibility Area) with the recommendation for the site to be in a very high fire severity zone. A copy of the CalFire Fire Hazard Zone map is located in the Addenda. It is an assumption of this report that all Fire Safety Conditions which are required by code have been incorporated into both the construction of the homes and the development of the lands and that the homebuyers are able to obtain fire insurance.

Soils Condition: We have reviewed a Rough Grading Compaction Report which covers Lots 1-o6 Tract 20362, Lots 1-249 Tract 20363 and Lots 1- 109 of Tract 20364 (the entire Gardens portion of the Arboretum), prepared by RMA and dated April 5, 2022. The report concludes that the rough grading performed was in substantial compliance to the recommendations of the approved geotechnical report and applicable sections of the California Building Code for the proposed development residential use.

It is an assumption of this appraisal that the soils are adequate to support the highest and best use conclusion and that all recommendations made within any and all reports were adhered to during construction. The appraiser is not a soils expert, and it is recommended that any concerns relating to soils should be addressed to the appropriate experts.

Seismic
Information: Within the reviewed Geotechnical Reports, it states the site is not located within the boundaries of an Earthquake Fault Zone. The nearest faults are located 1,600 feet to the northwest along the Cucamonga fault zone and about 800 feet northeast along the San _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 34
Jacinto fault zone. There is a discussion in the report about a possible concealed fault, however after further research, it was concluded in the report that it appears unlikely that there was past surficial faulting. The appraiser is not an earthquake expert, and it is recommended that any concerns relating to earthquake faults should be addressed to the appropriate experts.

Environmental
Concerns: We have reviewed a Phase I Environmental Site Assessment for Lot 1 and Lot 2 of Tract 20362 prepared by EnviroApplications, Inc. and dated July 22, 2024. Upon their review of regulatory agency records, there were no open release cases or regulatory listings for adjacent properties that would pose an environmental risk. Upon their physical inspection, no indication of any potential adverse environmental impacts to the subject property were observed. The assessment revealed no evidence of known or suspected RECs, CRECs, or HRECs in connection with the subject property, thus no additional investigations were recommended. It is an assumption of this report that there are no environmental issues which would slow or thwart development of the subject property and that all proposed mitigation efforts were completed. This is evidenced by construction of homes on the site and City inspectors on site during construction.

Flood Information: Per FEMA Map No. 06071C7915H dated August 28, 2008, the property is shown as being in Zone X which states areas determined to be outside of the 0.2 percent annual chance floodplain.

Easements and
Encumbrances: We have reviewed a Preliminary Title Report prepared by First American Title Company which covers Lot 1 and 2 of Tract 20362 (both Trellis and Marigold). The Report Order Number is NHSC7198503 and the report is dated June 18, 2026. While the exceptions appear typical for subject-type lands, it is an assumption of this appraisal report that the subject lands are free and clear of any liens and/or encumbrances other than CFD No. 113. The appraiser is not a title expert, and it is recommended that any concerns relating to title should be addressed to the appropriate experts.

Utilities: All normal utilities are available to serve the subject site by the following companies:

Electrical: Southern California Edison Company
Natural Gas: SoCal Gas
Sewer: City of Fontana
Water: West Valley Water District
Schools: Fontana Unified School District
Streets/Access: Access to the subject property is convenient via I-15 to Duncan Canyon Road, east about 0.9 mile to Cypress Avenue. The gated _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 35
entrances are on both the north and west side of the Arboretum at Cassava Drive from the north and at Gardens Street off Cypress Avenue from the west. Additional access is via I-15 from Sierra Avenue and south about one mile to Duncan Canyon or from I-210 exit Sierra Avenue and north about 1.9 miles to Duncan Canyon Road.

I-15 is a major north/south freeway, which provides access to both international borders with Mexico and Canada.

Duncan Canyon Road is an east/west access road with on/off ramps to I-15. To the east Duncan Canyon currently terminates at Sierra Avenue, about 1.5 miles east of I-15, providing access to North Fontana. To the west Duncan Canyon Road is the main entrance into Hunter’s Ridge, a master plan southwest of the subject.

Sierra Avenue is the eastern boundary of the subject property. Sierra Avenue is a major north/south arterial through Fontana. Sierra Avenue has on/off ramps from the I-15, the I-210 and the I-10 (about six miles south of the subject. North of the subject Sierra Avenue becomes Lytle Creek Road past I-15 and to the south, it provides access throughout the City of Fontana and into Jurupa Valley. Sierra Avenue is a commercial corridor through most of Fontana.

Cassava Drive is a main entrance into The Gardens off of Duncan Canyon Road and providing access into the community.

Gardens Street is an east/west access street and the western entrance into the subject site. Gardens Street is an approximate ½ mile access street providing the west gated entrance into The Gardens and providing access into The Meadows neighborhood within The Arboretum to the west.

Internal streets include Bay Tree Lane, Trowel Lane, Bulb Way, Forest Lane, Peat Moss Lane, Mace Way, Stone Pine Lane, Bracken Way and Wind Break Lane within Marigold and Burlap Lane, Thorn Way, Bottlebrush Lane, Flaxleak Way, Courtyard Lane, Impatiens Lane, Ficus Lane and Osage Way within Trellis.

Current Condition: The subject is being developed into 90 triplex homes (generally two detached and a one-story upstairs above the three, 2-car garages) within Trellis and 124 detached small-lot homes in an alley load and cluster format within Marigold. All internal streets were paved and utilities were pulled to each pad within both neighborhoods. There was some rock stockpiled on about 16 of the pads within Marigold.

There is a pool/park area which is complete and open to serve both _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 36
Marigold and Trellis, along with a dog park. Upon our inspection, 22 of the 90 proposed homes within Trellis are over 95 percent complete including 12 individually owned homes, 3 models homes, 7 production homes (3 in escrow), 11 homes under construction, and 57 remaining finished pads (three owned by Risewell and 54 owned by TPG AG). Within Marigold there are 15 homes over 95 percent complete including nine individually owned homes, four models and two production homes, no homes under construction and 109 remaining finished pads (21 owned by Risewell and 88 owned by TPG AG).

Costs to Complete: Trellis has been developed into 90 finished lots/pads with internal streets generally complete and utilities stubbed to each lot/pad. Per Risewell representatives, the remaining hard costs include no remaining land development hard costs, however, there are $1,140,000 in remaining DIF fees which are not included in the CFD (this appraisal assumes the bonds are in place). It is our understanding that these costs are the builder’s responsibility and will be spread between the builder and investor-owned lots as the individual owners are not responsible. Out of the total 90 lots/pads, 12 are individually owned leaving 78 pads, homes under construction or completed homes owned by the builder and/or investor. Dividing the $1,140,000 by the 78 homes/pads results in remaining land development costs of $14,615.38 per lot/pad.

Marigold has been generally developed into 124 finished lots/pads with internal streets complete and utilities stubbed to each lot/pad.

Per Risewell representatives, the remaining hard costs include no remaining land development hard costs, however, there are $1,670,000 in remaining DIF fees which are not included in the CFD (this appraisal assumes the bonds are in place). It is our understanding that these costs are the builder’s responsibility and will be spread between the builder and investor-owned lots as the individual owners are not responsible. Out of the total 124 pads, nine are individually owned leaving 115 pads, homes under construction or completed homes owned by the builder and/or investor. Dividing the $1,670,000 by the 115 homes/pads results in remaining land development costs of $14,521.74 per unit.

These costs will be considered under the valuation section later within this report.

Improvement
Description: Below is a site plan followed by a brief description for each of the neighborhoods.
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Trellis
Trellis is made up of 90 proposed triplex homes, however within the majority of the pods, two homes are detached and one is upstairs over the three, two-car garages. The three plans range in size from 1,530 to 1,667 square feet. Plan 1 is an upstairs unit over their own 2-car garage (with access from the garage) along with over two additional two-car garages which are attached. The upstairs unit (or “carriage house”) has three bedrooms and two baths. Thus, Plan 1 has an attached 2-car garage while Plans 2 and 3 have detached 2- car garages with a small courtyard between the house and the garage. Trellis Plan 2 and 3 each have four bedrooms (one downstairs) and 3 bathrooms with sizes from 1,567 to 1,667 square feet. Three of the triplex plans have a fourth home, an extra Plan 3 which has its own detached garage. The plans are offered with Mediterranean and American influenced architecture detailing.

Architectural and Interior Design includes designer selected paint and materials, Therma Tru front door entry door, Kwikset interior door handles and LED lighting throughout. Kitchens include GE Stainless appliances, quartz slab countertops, recycle binds, under cabinet lighting, a stainless-steel side-by-side refrigerator, stainless steel undermount sinks, white thermofoil cabinets and luxury vinyl _________________________________________________________________________________________________________ Appraisal Report
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plank flooring. The tech and wellness (known at Risewell as “Evo”) includes a Gateway all in one smart hub panel, an alarm video doorbell, a Honeywell smart thermostat, a washer and dryer, a smart garage door opener and a Kwikset smart entry door lock.

The Trellis models are located at Courtyard and Impatiens Lanes.

There are three model homes, one for each plan. Twelve of the homes have closed escrow to homebuyers and there are three models and seven homes over 95 percent complete (three in escrow). There are 11 homes under construction. The project opened for sale September 20, 2025, with base pricing $526,000 to $580,000 while current base pricing is $506,000 to $565,000 a reduction between 2.6 to 5.2 percent. The homes began closing January 23, 2026, with actual closed net sales prices (as reported by the builder) ranging from $514,490 to $577,990. These reported prices include all premiums, options and incentives. It should be noted that the “net prices” include the financing incentives including rate buy-downs that are not included in the reported sales prices, however, are a cost to the builder, thus we are including them in our analysis. Our search of the MLS revealed no resales and no current resale listings. Our physical search noted all homes appear to be in excellent condition. It should be noted that the seller is offering varying concessions, including some interest rate buydowns, on a case-by-case basis. The total incentives including closing cost/rate buy downs have ranged from $10,000 to $47,000. The houses which are over 95 percent complete are shown in the table following the Marigold description.

Marigold
Marigold is made up of 124 proposed detached homes on
condominium lots. The four plans range in size from 1,656 to 1,979 square feet. All are detached on alley-load lots with attached 2-car garages. Plan 1 and 2 have stepped, single car garages rather than a typical 2-car garage. All plans have 3-4 bedrooms and 2.5 to 3 bathrooms. The plans are offered with Mediterranean and American influenced architecture detailing. All features are the same as within Trellis.

The Marigold models are located at Forest Lane and Windbreak Lane. There are four model homes, one for each plan. Nine of the homes have closed escrow to homebuyers and there are four models and two homes over 95 percent complete. There are no homes under construction at this time. The project opened for sale September 20, 2025, with base pricing $630,000 to $658,000 (however only included Plans 1 through 3) while current base pricing for Plans 1-3 _________________________________________________________________________________________________________ Appraisal Report
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is $567,000 to $635,000, a reduction between 3.5 to 10 percent. Plan 4 has a current base price of $665,000. The homes began closing December 18, 2025, with actual closed net sales prices (as reported by the builder) ranging from $608,364 to $654,490. These reported prices include all premiums, options and incentives. It should be noted that the “net prices” include the financing incentives including rate buy-downs that are not included in the reported sales prices, however, are a cost to the builder, thus we are including them in our analysis. Our search of the MLS revealed no resales and no current resale listings. Our physical search noted all homes appear to be in excellent condition. It should be noted that the seller is offering varying concessions, including some interest rate buydowns, on a case-by-case basis. The total incentives including closing cost/rate buy downs have ranged from $15,000 to $55,035. The houses which are over 95 percent complete are shown in the table below.

*One of each of these is a model. There are an additional 11 homes under construction and 166 additional pads with 24 owned by Risewell and 142 owned by TPG AG, not shown on the above table.

Richmond American – Iris and Flora
Location: East side of Cypress Avenue, both north and south side of Gardens Street, Fontana, California
Legal Property
Description: Iris - Lot 3 of Tract 20362, City of Fontana, County of San Bernardino, California – subdivided into 88 condominium units
Flora – Lot 4 of Tract 20362, City of Fontana, County of San Bernardino, California – subdivided into 86 Units
Property Owner: Iris:

Individual Owners as to Units 1-10, 12-17, 19-35, 49, 52-56, 58-59, 61, 63-64, 67-69, 73-74 and 78 of Lot 3 of Tract 20362. Richmond The Gardens Phase Two by Risewell
Plan Bd/Ba
Floors/
Parking Sq. Ft.

Ind.

Owned
Bldr.

Owned
Trellis
1 3 / 2 1 / 2 1,530 4 3*
2 4 / 3 2 / 2 1,567 4 3*
3 4 / 3 2 / 2 1,667 4 4*
Subtotal Trellis 12 10
Marigold
1 3 / 2.5 2 / 2 1,656 4 2*
2 3 / 2.5 2 / 2 1,760 3 2*
3 4 / 2.5 2 / 2 1,870 2 1*
4 4 / 3 2 / 2 1,979 0 1*
Subtotal Marigold 9 6
Total Risewell The Gardens Phase Two 21 16
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American as to Units 11, 18, 36-48, 50-51, 57, 60, 62, 65-66, 70-72, 75-77 and 79-88, Lot 3 of Tract 20362.

Flora:

Individual Owners as to Units 14, 16-17, 19, 22, 24, 26-29, 31-38, 40, 42, 44, 48-51, 54-63 and 65-78 of Lot 4 of Tract 20362. Richmond American as to Units 1-13, 15, 18, 20-21, 23, 25, 30, 39, 41, 43, 45- 47, 52-53, 64 and 79-86 of Lot 4 of Tract 20362.

Assessors
Parcel Nos.: Iris: 1118-421 and 1118-422 - various parcels.

Flora: 1118-441 and 1118-443 - various parcels.

Property Taxes: We have reviewed the 2025/26 property tax statement for Assessor Parcel Number 1118-421-25-0000, a sample home within Iris. The property has an assessed value of $509,907; however this does not take into account the current value of the lot, thus there should be a supplemental tax bill. The overall taxes include $5,099.07 for the ad valorem tax along with miscellaneous charges totaling $1,101.90 (Chaffey Community College, Fontana Unified and San Bernardino Valley Municipal Water District) for a total tax invoice of $6,200.97.

The tax invoice does not include Fontana CFD 113. At this time the overall tax rate, based on the assessed value, is 1.216 percent. It is an assumption of this report that the overall property taxes and special assessments are not over two percent.

Three-Year
Sales History: Per Richmond American Homes representatives, Richmond American Homes of Maryland, Inc. purchased both Lot 3 and Lot 4 on January 2, 2024 for $28,789,376 from North Fontana Investment Company, LLC (a related entity to Lewis). On April 19, 2024 a subsidiary of Sekisui House, Ltd., a Japanese kabushiki kaisha (“SHL”) merged with and into M.D.C. Holdings, Inc., a Delaware corporation (“MDC”), Richmond American’s then parent, with MDC being the surviving entity. Following the merger, MDC changed its name to Sekisui House U.S., Inc., a Delaware corporation (“SHUS”). The landowning entity continues to be Richmond American, whose direct parent is SHUS and ultimate parent is SHL.

Richmond American began closing homes within Iris and Flora to individual owners in April 25, 2025, and has closed 99 houses (50 In Iris and 49 in Flora) between April 25, 2025, and August 7, 2026.

Size and Shape: Iris is generally rectangular in shape and contains 9.097 acres per Tract Map No. 20362 (Lot 3).

Flora is generally rectangular in shape and contains 9.564 acres per Tract Map No. 20362 (Lot 4).
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Zoning: Per the current City of Fontana General Plan and the current City of Fontana Zoning Map, the subject is shown as located within The Arboretum Specific Plan. Per the Arboretum Specific Plan adopted October 14, 2009, and amended June 2021, Tract Maps 20362 is designated as RMF (Residential – Multi-Family with 8.1-16.1 dwelling units an acre. The current City of Fontana Zoning Map is consistent with the General Plan.

Entitlements: Per the Arboretum Specific Plan, Iris is shown as G3 and has entitlements for 90 units while Flora is shown as G4 with entitlements for 85 units. Iris has been approved for 88 total units while Flora has been approved for 86 units. It is the appraiser’s understanding that density transfers between planning areas are allowed. This results in a density of 9.89 dwelling units per acre for Iris and a density of 8.99 dwelling units per acre for Flora. Both densities are within the allowed densities per the Zoning and General Plan. A copy of Tract No. 20362 along with the site plans are located in the Addenda for your review.

Homeowner’s
Association: Per Richmond American representatives, the latest HOA budget shows a master association assessment of $192 per month with Iris having an additional $94 per month and Flora having an additional $77 per month. The community specific HOA covers the communityspecific common area landscape area and irrigation maintenance.

The master HOA covers maintenance of the community gates, swimming pool, spa, barbeques, clubhouse and restrooms, community parks, as well as all walkways and community
landscaping. The pool, spa, clubhouse and park areas were in excellent condition and were open for use.

Topography: The subject lands are generally level at grade of surrounding streets of Cavassa Drive, Cypress Avenue and Gardens Street, all which are improved at the site. In addition, the site has been graded into 174 residential pads. Drainage appears to be within an engineered street drainage system that ties with surrounding lands to alleviate any drainage issues on the property. This is suggested by the City approvals for the construction of the homes.

Fire Hazard Zone: Per the City’s General Plan and Zoning Map, the site is within a fire overlay zone. Per the State of California’s Fire Hazard Map, the site is within a LRA (Local Responsibility Area) with the recommendation for the site to be in a very high fire severity zone. A copy of the CalFire Fire Hazard Zone map is located in the Addenda. It is an assumption of this report that all Fire Safety Conditions which are required by code have been incorporated into both the construction _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 42
of the homes and the development of the lands and that the homebuyers are able to obtain fire insurance.

Soils Condition: We have reviewed a Rough Grading Compaction Report which covers Lots 1-6 Tract 20362, Lots 1-249 Tract 20363 and Lots 1-109 of Tract 20364 (the entire Gardens portion of the Arboretum), prepared by RMA and dated April 5, 2022. The report concludes that the rough grading performed was in substantial compliance to the recommendations of the approved geotechnical report and applicable sections of the California Building Code for the proposed development residential use.

Seismic
Information: Within the reviewed Geotechnical Reports, it states the site is not located within the boundaries of an Earthquake Fault Zone. The nearest faults are located 1,600 feet to the northwest along the Cucamonga fault zone and about 800 feet northeast along the San Jacinto fault zone. There is a discussion in the report about a possible concealed fault, however after further research, it was concluded in the report that it appears unlikely that there was past surficial faulting. The appraiser is not an earthquake expert, and it is recommended that any concerns relating to earthquake faults should be addressed to the appropriate experts.

Environmental
Concerns: We have not received an environmental site assessment for Lot 3 and 4. It is an assumption of this report that there are no environmental issues which would slow or thwart development of the subject property and that all proposed mitigation efforts were completed. This is evidenced by construction of homes on the site and City inspectors on site during construction.

Easements and
Encumbrances: We have reviewed a Preliminary Title Report prepared by Fidelity National Title which covers the Richmond American owned property within Lots 3 and 4 of Tract 20362 (both Iris and Flora). The Report Order Number is 996-30121871-G-KC1 and the report is dated July 16, 2026, and amended August 4, 2026. While the exceptions _________________________________________________________________________________________________________ Appraisal Report
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appear typical for subject-type lands, it is an assumption of this appraisal report that the subject lands are free and clear of any liens and/or encumbrances other than CFD No. 113. The appraiser is not a title expert, and it is recommended that any concerns relating to title should be addressed to the appropriate experts.

Utilities: All normal utilities are available to serve the subject site by the following companies:

I-15 is a major north/south freeway, which provides access to both international borders with Mexico and Canada.

Internal streets include Botanical Lane, Anise Way, Flower Bed Lane, Nettle Lane, Perennial Lane, Trellis Lane, Anise Way, Flower _________________________________________________________________________________________________________ Appraisal Report
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Lane, Dindle Lane, Sand Brier Street and Frond Lane within Iris and Poppy Seed Lane, Loquat Lane, Tomatillo Lane, Shallot Street, Kale Avenue, Jicama Lane and Sprout Way within Flora.

Current Condition: Iris has been developed into 88 single family detached condominium pads in a cluster load format while Flora has been developed into and 86 single family detached condominium pads in a cluster/alley load format. Internal streets were paved and utilities were pulled to each pad within both neighborhoods. There is a neighborhood park within both Iris and Flora which are complete and open. Upon our inspection, 69 of the 88 proposed homes within Iris are over 95 percent complete including 50 individually owned homes, 4 models homes and 15 production homes (1 in escrow). No homes were under construction and there are 19 remaining finished pads. Within Flora, 67 of the 86 proposed homes are over 95 percent complete including 49 individually owned homes, four models and 14 production homes. No homes were under construction and there are 19 remaining pads.

Costs to Complete: Iris has been developed into 88 finished pads with internal streets complete and utilities stubbed to each pad. Per Richmond American representatives, the remaining hard costs include no remaining land development hard costs, however, there are $232,312 in remaining DIF fees which are not included in the CFD (this appraisal assumes the bonds are in place). It is our understanding that these costs are the builder’s responsibility and will be spread between the builder and investor-owned lots as the individual owners are not responsible.

Out of the total 88 pads, 50 are individually owned leaving 38 pads, homes under construction or completed homes owned by the builder. Dividing the $232,312 by the 38 homes/pads results in remaining land development costs of $6,113.47 per home/pad.

Flora has been developed into 86 finished pads with internal streets complete and utilities stubbed to each pad. Per Richmond American representatives, the remaining hard costs include no remaining land development hard costs, however, there are $359,341 in remaining DIF fees which are not included in the CFD (this appraisal assumes the bonds are in place). It is our understanding that these costs are the builder’s responsibility and will be spread between the builder and investor-owned lots as the individual owners are not responsible.

Out of the total 86 pads, 49 are individually owned leaving 37 pads, homes under construction or completed homes owned by the builder. Dividing the $359,341 by the 37 homes/pads results in remaining land development costs of $9,711.92 per home/pad.

These costs will be considered under the valuation section later within this report.
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Improvement
Description: Below is a site plan for Iris followed by a brief description.

Iris
Iris is made up of 88 proposed single family detached homes in a cluster/alley-load format. The four plans range in size from 1,750 to 1,950 square feet. It should be noted that these square footages are what is reported in the marketing materials. Some permit square footage differs up to nine square feet per plan. For purposes of this analysis, we will utilize the marketing material square footages. All plans have 3-4 bedrooms and 2-3 bathrooms. The plans are offered with Mediterranean and American Farmhouse influenced
architecture detailing. Architectural and interior design includes professional design team selected paint and materials. Kitchens include quartz slab countertops, stainless steel undermount sinks, white thermofoil cabinets and wood laminate flooring. Interiors include 2-panel doors, carpet and 3-1/2” baseboards. Entrances include a Halo Wi-Fi enabled smart lock deadbolt.

The Iris models are located at Anise Way and Botanical Lane. There are four model homes, one for each plan. Fifty of the homes have closed escrow to homebuyers and there are four models and 15 production homes over 95 percent complete (one in escrow). There _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 46
are no homes under construction. The project opened for sale January 11, 2025, with base pricing $606,000 to $645,000 while current base pricing is $612,000 to $650,000 suggesting a slight increase in pricing over the past 18 months. The homes began closing April 25, 2025, with actual closed net sales prices (as reported by the builder) ranging from $540,992 to $707,892. These reported prices include all premiums, options and incentives. It should be noted that the “net prices” include the financing incentives including rate buy-downs that are not included in the reported sales prices, however, are a cost to the builder, thus we are including them in our analysis. Our search of the MLS revealed no resales and one current listing of a resale of a Plan 4. Our physical search noted all homes appear to be in excellent condition. It should be noted that the seller is offering varying concessions, including some interest rate buydowns, on a case-by-case basis. The total incentives including closing cost help and mortgage rate buy downs have ranged from $5,000 to $75,956. The houses which are over 95 percent complete are shown in the table following the Flora description.

Flora
Flora is made up of 86 proposed single family detached homes in a cluster/alley-load format. The four plans range in size from 1,850 to 2,120 square feet. It should be noted that these square footages are what is reported in the marketing materials. Some permit square _________________________________________________________________________________________________________ Appraisal Report
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footage differs up to nine square feet per plan. For purposes of this analysis, we will utilize the marketing material square footages. All plans have 3 to 4 bedrooms and 2 to 3.5 bathrooms. The plans are offered with Mediterranean and American influenced architecture detailing. Features are the same as within the Iris community The Flora models are located on Loquat Lane. There are four model homes, one for each plan. Forty-nine of the homes have closed escrow to homebuyers and there are four models and 14 production homes over 95 percent complete (one in escrow). There are no homes under construction. The project opened for sale March 22, 2025, with base pricing $635,000 to $674,000 while current base pricing is $673,990 to $722,990 suggesting an increase in pricing of

5.7 to 7.3 percent. The homes began closing May 29, 2025, with actual closed net sales prices (as reported by the builder) ranging from $606,674 to $733,703. These reported prices include all premiums, options and incentives. It should be noted that the “net prices” include the financing incentives including rate buy-downs that are not included in the reported sales prices, however, are a cost to the builder, thus we are including them in our analysis. Our search of the MLS revealed no resales and no current resale listings. Our physical search noted all homes appear to be in excellent condition.

It should be noted that the seller is offering varying concessions, including some interest rate buydowns, on a case-by-case basis.

The total incentives including closing cost help and mortgage rate buy downs have ranged from $12,000 to $87,076. The houses which are over 95 percent complete are shown in the table below.

*One of each of these is a model. There are an additional 38 additional pads (19 in Iris and 19 in Flora), not shown on the above table.

The Gardens Phase Two by Richmond American
Plan Bd/Ba
Floors/
Parking Sq. Ft.

Ind.

Owned
Bldr.

Owned
Iris
1 3 / 2.5 2 / 2 1,750 11 4*
2 3 / 2.5 2 / 2 1,830 4 6*
3 4 / 3 2 / 2 1,840 9 8*
4 4 / 3 2 / 2 1,950 26 1*
Subtotal Iris 50 19
Flora
1 4 / 3 2 / 2 1,850 7 5*
2 4 / 3.5 2 / 2 1,920 16 3*
3 4 / 3.5 2 / 2 2,070 14 8*
4 4 / 3.5 2 / 2 2,120 12 2*
Subtotal Flora 49 18
Total Richmond Am Gardens Phase II 99 37
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THE INLAND EMPIRE HOUSING MARKET
In analyzing the area’s housing market, population growth and economic conditions need to first be considered.

Population
The San Bernardino County population grew 0.1 percent between January 2025 and January 2026, and an average of about 0.5 percent the previous 16 years. Projections for the County’s growth over the next six years is currently about 0.3 percent per year.

This equates to an increase of approximately 6,500 residents per year suggesting the need for about 2,200 homes per year within the County.

Economic Conditions
Over the past twenty-five years the Inland Empire has seen various cycles in the housing market. The Great Recession impacted the Inland Empire significantly and resulted in a longer recovery period than that of other Southern California regions. The rise and then fall of housing prices in the Inland Empire between 2004 and 2009 were considerably steeper than almost anywhere in the State. Unfortunately, this meant that the people who bought near the peak of the market likely faced significant negative equity. After essentially remaining flat for a few years, housing prices began to increase in late 2012 through January 2020. Once the COVID pandemic hit in March 2020, the economy entered what is now known as the COVID disruption. The housing market slowed down significantly early on, but by May 2020, new homes were going under contract and selling at well above average absorption rates from May 2020 through Spring of 2022 in the region. Beginning in mid-2022, the new home market saw a slowdown in absorption rates due to the increasing interest rates, the high prices of homes, and the high rate of inflation which was shaking consumer confidence. As interest rates and home prices remain elevated, sales absorption rates for 2025 continued to perform slightly lower than average with 2026 seeing even slower sales thus far. The average absorption rate for the Inland Empire for 2020-2024 was 3.7 home sales per month per project while 2025 dropped to

3.0 home sales per month per project. Thus far in 2026, the average absorption rate in the Inland Empire is 2.8 home sales per month per project. _________________________________________________________________________________________________________ Appraisal Report
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Median housing prices (all types) in the County increased almost 300 percent from $120,406 at the lowest point in 2009 to the June 2024 peak of $522,500 while the July median price is $488.280 per the California Association of Realtors. This is 0.4 percent higher than one year ago, however 3.9 percent below last month.

Economic growth in the Inland Empire was strong generally between 2015, after the Great Recession, and until the economic shutdown due to COVID. The second half of 2020 and all of 2021 saw economic growth, however the first two quarters of 2022 saw GDP shrinking. The most July 2026 unemployment rate for the County is 5.2 percent (per the July 2026 EDD report).

The housing market played a large role in the past two recessions. In the Great Recession, due to increased interest rates and rising home prices between June 2004 and mid-2006, the market reaction was to create non-conventional financing alternatives, such as sub-prime and non-conventional mortgages, to artificially maintain the boom housing market of 2004 and 2005. By 2007, the housing market saw a shake-up because of the problems in the sub-prime and non-conventional mortgage markets, which played a role in the 2008 upheaval of Wall Street and contributed significantly to the U.S. economic downturn of the Great Recession. Due to stricter income verification on new loans and the lack of available credit, coupled with job losses and declining home prices, sales of new homes slowed for the next few years and essentially remained flat until mid2012 when home prices began a steady climb.

During the COVID disruption, new home sales were one of the brightest spots in both the local and national economies. While new home sales slowed in March and April 2020 due to the onset of the COVID pandemic, both sales and prices increased significantly due to strong demand from May 2020 throughout COVID until spring 2022 when interest rate increases began affecting the home-buying market. A combination of increasing home prices and falling consumer confidence, added to the significant interest rate increases, slowed new home sales significantly beginning in mid-2022. Due to the significantly higher mortgage interest rates, existing homeowners were not moving which stifled the _________________________________________________________________________________________________________ Appraisal Report
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existing home market, making the new home market the only option for some. Both new homes and existing home sales have slowed considerably from mid-2022 to now. In January 2022, mortgage rates were 3.22 percent (for a typical 30-year fixed conventional mortgage) while as of August 6, 2026, the rate for the same loan is 6.69 percent, after hitting a low of 5.98 in February 2026. On a $500,000 mortgage, the current monthly payment for this loan has increased from $2,162 to $3,205 or over 50 percent which has hit homebuyers hard.

Per the Zonda National Economic and Housing Market Update in January 2026, the new home market in 2025 remained essentially flat from 2024. Buyers remained paralyzed by poor affordability and low confidence. With affordability declining, sales struggled to gain traction. This forced builders to lean heavily on aggressive price cuts or financing incentives to maintain sales momentum, move standing inventory and sell future homesites. The year 2026 began with lower rates, however the war increased inflation with rates rising once again beginning in March. Builders have remained disciplined with supply which has helped prevent the types of surpluses we’ve seen in the past cycles.

On a more micro level in the Inland Empire Zonda believes affordability is the main driver of slow sales with current home prices 22 percent above the income supported prices (based on both new and existing sales). This has led to further slowing of sales, significant incentives including rate buy-downs and some builders lowering their pricing.

The public homebuilders began offering significant interest rate buy-downs in early 2023 in order to keep absorption rates steady, which reportedly cost between $30,000 and $100,000 in incentives. The question is, how long can builders continue to offer these significant incentives. As rates go higher, the extent that builders can buy-down the mortgage rates goes down. From conversations with active public homebuilders, they fully expect rate buy-downs to be prevalent in the new home buying process until rates come down to the mid-five percent to six percent range. Although rate buydowns are setting new home communities apart from the resale market, it is very costly to the builders to absorb which is greatly affecting their profitability. _________________________________________________________________________________________________________ Appraisal Report
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Home loan mortgage rates have been and are still playing a huge part in the housing market. The Board held mortgage rates at all-time lows after the Great Recession and again after the COVID Recession in an attempt to assist the housing market’s recovery.

Low rates helped home sales during this time. However, first-time buyers are now having a hard time entering the housing market due to rising prices and rising interest rates.

Mortgage applications had been spiking in late 2020 and 2021 due to the low rates and the fear rates were going to start ticking up, which began happening in March 2022. The Board increased the rate eleven times between March 2022 and August 2023, which increased the FFR from 0-0.25 percent to 5.25-5.50 percent. The Board kept rates steady from September 2024 until September 2024 with three decreases in late 2024 and three decreases in late 2025 bringing the FFR to the current rate of 3.5 – 3.75 percent. Thus far in 2026 there have been no rate increases, however, Wall Street is currently anticipating up to two increases before the end of the year.

Residential Land Development
While there had been little land development going on in most of the Inland Empire during the Great Recession years 2008-2011, the second half of 2012 saw a resurgence in the more coveted areas of the Inland Empire. The increase in housing prices since 2012 combined with the limited availability of supply made land development feasible once again for homebuilders. It is thought that the increase in regulations, which has significantly increased the timeline for processing entitlements, has limited the master developers’ further entitlement of developable land in California. While prior to the recession it was not unusual to see numerous large master-planned communities selling lots to various builders, there are few currently available in the subject area such as The Arboretum and in Ontario Ranch The Resort. The majority of land sales over the past few years include single tracts of land with maps ready to record or a public builder buying a larger piece of land but develops the land for its own use, such as Narra Hills by Risewell Homes and The Gardens Phase One at the Arboretum by Lennar which has sold out.

Land sales in the Inland Empire slowly grew from 2012 up to a peak in 2017, with 2018 and 2019 showing lower land transactions. Once home sales exploded in May 2020, land _________________________________________________________________________________________________________ Appraisal Report
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sales followed with a significant number of residential land sales to builders in the Inland Empire during the second half of 2020 and throughout 2021. In late 2021 and the beginning of 2022, prior to the FFR increases, builders were paying significantly more for residential land that was ready to develop as demand was strong and supply was shrinking. The beginning of 2022 continued with strong residential land sales until May when land sales began to fall sharply due to slowing new home sales. Land sales in the Inland Empire bounced back in 2024, were down about 50 percent in 2025 and thus far in 2026 are continuing to be slow. There have been 20 residential land sales to builders in the Inland Empire thus far in 2026 with ten occurring prior to May representing six homebuilders, however since May, Lennar was the only buyer of the additional ten sales.

Brokers familiar with the residential land market in the Inland Empire believe that the pipelines of the land held by builders other than Lennar has been drying up and that they will be back in the market in the next 12 months or so. Current new homes communities selling within North Fontana include: Narra Hills with two neighborhoods currently being marketed by Risewell Homes (formerly Landsea Homes), The Gardens/Arboretum with four neighborhoods (subject property) currently selling, two by Richmond American and two by Risewell, and the neighborhoods of Sierra Vista and Citrus Lane, both by DR Horton.

New Home Sales and Pricing
We have researched new single-family homes within the subject’s market in order to reflect residential trends. It should be noted these sales numbers and prices pertain to new home sales while later in this section we discuss existing home sales. In reviewing new home sales in the Inland Empire market area, per the August 9, 2026, Ryness Report, the year-to-date average sales rate (2.8 sales per month) is five percent below 2025 (3.0 sales per month per project) with previous averages of 4.2 sales per project per month in 2024, 3.9 sales per project per month in 2023, 5.5 sales per project per month in 2022 and 5.2 sales per project per month in 2021. There are many reasons impacting the slowing new home sales but one of the main reasons is the affordability issue.

According to Zonda, the new home affordability ratio is at its 10-year low. The key factors that contributed to the affordability problem are increased mortgage rates, stagnant job _________________________________________________________________________________________________________ Appraisal Report
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and wage growth, inflation, tariffs and increasing insurance costs. Surprisingly, even with the high pricing and mortgage rates, sales of new homes are still occurring, however at a slower rate than in the last few years. This is partially due to the extremely limited supply of existing homes on the market which is creating more demand for new homes.

When comparing the August 9, 2026, Inland Empire Ryness Report to one year prior, there are three additional projects (237 in August 2025 and 234 in August 2024) and sales are down with the monthly average year to date at 2.8 sales per month per project. New single-family home pricing (combines both attached and detached) in the Inland Empire has also seen changes. The median new home price in the Inland Empire changed from the peak value of $437,200 in the third quarter of 2006 to $268,155 in early 2009 (decrease of 39 percent) while the current Inland Empire median new home price is $610,480, down 0.2 percent from one year ago. In addition to decreasing prices, builders are offering significant incentives, some which don’t show up in the sales price. New home sale prices fluctuate based on the land value and competition more than on the cost of building the home. While finishes and sizes of homes can change, the basic costs on a per square foot basis typically do not fluctuate as much as land values; however, there have been inflationary increases in construction costs adding to this increase.

Construction materials have increased over 50 percent since 2019. The subject communities are utilizing incentives and concessions to close homes.

We have reviewed Empire Economics’ Price Point Review Study on Fontana CFD No. 113 (The Gardens Phase Two) dated August 19, 2026. Empire Economics did an original Price Point Study on the project in January 2024 in order to determine their price points for the various plans within The Gardens Phase Two. The “Review Study” is to ascertain if the prices have increased or decreased since the original Study. The Empire Economics Price Point Review Study concluded that all plans within The Gardens Phase Two have current base price conclusions which were above the original base price conclusions in January 2024. The 15 plans within the four neighborhoods in The Gardens Phase Two showed increases ranging from 3.0 percent to 12.0 percent. Overall, the plans average a

7.59 percent increase from the original January 2024 Price Point Study. The Review _________________________________________________________________________________________________________ Appraisal Report
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Study took into account the concessions which are included in their net prices even though some are not included in the reported sales prices. That is, interest rate buydowns and closing cost incentives are not reported in the sales prices, however, are considered in both the Price Point Review Study and in the appraisal analysis.

Within our search for the most comparable actively selling new home communities, we searched the subject area of North Fontana, which features a few actively selling new home communities. We found 12 communities we considered to be comparable to the homes at The Gardens Phase Two. The comparables have current base prices ranging from $506,000 to over $789,000. The Gardens Phase Two new homes have a range of base prices from $506,000 to $722,000, which falls within the range of comparable new homes in the area and includes the lowest of all the comparables price range for the carriage house single-story unit within Trellis which is up over garages.

Existing Homes Sales and Pricing
While the previous section looked at new home sales and pricing, this section refers to existing homes in the Inland Empire. According to the California Association of Realtors’ (“CAR”) most recent data, within overall Southern California, the median price paid for an existing single-family home in July 2026 ($899,000) is 0.1 percent lower than the month prior median home price ($900,000), and up 2.7 percent year-over-year from $875,030 in July 2025. These overall Southern California numbers compare to San Bernardino County with $488,280 as the median price paid for an existing home in the County in July 2026, down 3.1 percent from the previous month ($508,080), however up 0.4 percent on a year-over-year basis ($486,290). Below is a table showing the sales and prices for the Southern California area by County per CAR.

Typically, as the price advantage widens, homebuyers are more open to commuting to further out areas. Recently the San Bernardino County “price advantage” has widened for the majority of counties.

In a separate attempt to capture the amount of increase in home prices, the resale activity of existing homes in the subject’s immediate area (per Redfin.com) has been reviewed.

The number of sales and sale prices of both new and existing single family detached homes within market areas surrounding the subject are shown in the table below.

Source: Redfin Housing Market Trends July 2026
Community
Name
Location
To Subject
No. of
Sales
June ‘26
June ‘26
Median
Sale Price
Price %
Change
Y-O-Y
North Fontana Larger Subject Vicinity 49 $690,000 -1.8% All of Fontana Subject and South 320 $667,000 -1.0%
Rialto East 127 $590,000 -0.3%
Rancho Cucamonga West 291 $786,000 -2.9%
Jurupa Valley South 154 $687,000 1.7%
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The median home price of a detached home in the subject’s vicinity of North Fontana in July 2026 was $690,000, which is in the mid-range of the detached home prices in the subject area. The majority of the new homes currently selling in Fontana are in the northern area of the city. The low end of the range relates to the area which includes all of Fontana including the southern portion that includes older homes and the Rialto and Jurupa Valley areas which also have older homes. The above price fluctuations from year-to-year relate to the California Department of Real Estate’s overall San Bernardino County detached home resale price decrease of 3.9% percent year-over-year from July 2025 to July 2026.

According to the Ryness Report dated August 9, 2026, there are currently 16 new home projects in the subject’s Central-East San Bernardino submarkets, with the City of Fontana housing 11 of them (including the subject’s four).

The Gardens Phase Two - Sales and Pricing
The Gardens Phase Two is comprised of 388 proposed single-family homes with marketed sizes from 1,530 to 2,120 square feet with products ranging from attached triplex homes to single-family detached homes on condominium lots. The Gardens Phase Two is being developed by two homebuilders, Risewell Homes and Richmond American.

Risewell Homes opened their two communities on September 20, 2025, and have sold 24 total homes suggesting an average sales rate of 2.2 homes per month between the two projects. Richmond American opened their first neighborhood in January 2025 and has sold 101 homes suggesting an average sales rate of 5.3 homes per month between the two projects. Each of the four projects is further discussed below.

Trellis by Risewell Homes
Within Trellis they have closed 12 homes with an additional 3 in escrow since September 2025 resulting in an average absorption rate of 1.4 homes per month with base prices decreasing from 2.5 to 5.2 percent depending on the plan. Original base pricing was from $526,000 to $580,000 while current base pricing is from $506,000 to $565,000. Actual net sales prices on closed homes range from $514,490 to $577,990 (these prices include _________________________________________________________________________________________________________ Appraisal Report
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all premiums, options and a deduction of all incentives, including financing incentives).

Total incentives on the closed homes have ranged from $10,000 to $47,000 per home.

Marigold by Risewell Homes
Within Marigold they have sold nine homes since September 2025 resulting in an average absorption rate of 0.8 homes per month with base prices decreasing since September 2025 from 3.4 to 10.0 percent depending on the plan. Original base pricing was from $630,000 to $658,000 while current base pricing is from $567,000 to $635,000. It should be noted that Plan 4 of Marigold was not in the original plans, thus there was no original base price. The current base price for Plan 4 is $665,000. Actual net sales prices on closed homes range from $608,364 to $662,990 (these prices include all premiums, options and a deduction of all incentives, including financing incentives). Total incentives on the closed homes ranged from $15,000 to $55,035 per home.

Iris by Richmond American
Within Iris they have closed 50 homes with one in escrow since January 2025 resulting in an average absorption rate of 2.7 homes per month with base prices decreasing from

2.3 to 4.4 percent depending on the plan. Original base pricing was from $633,000 to $677,000 while current base pricing is from $628,000 to $669,000. Actual net sales prices on closed homes range from $540,992 to $707,892 (these prices include all premiums, options and a deduction of all incentives, including financing incentives). Total incentives on the closed homes ranged from $5,000 to $75,956 per home.

Flora by Richmond American
Within Flora they have closed 49 homes with one in escrow since March 2025 resulting in an average absorption rate of 2.7 homes per month with the majority of base prices decreasing from 0.7 to 1.3 percent depending on the plan. Plan 2 had a base price increase of 4.7 percent. Original base pricing was from $633,000 to $677,000 while current base pricing is from $628,000 to $669,000. Actual net sales prices on closed homes range from $606,674 to $733,703 (these prices include all premiums, options and _________________________________________________________________________________________________________ Appraisal Report
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a deduction of all incentives, including financing incentives). Total incentives ranged from $12,000 to $87,076 per home.

The sales rates for the four communities range from 0.8 to 2.9 sales per month per project, which is generally at or below the average of the various projects in both the Inland Empire and in the subject submarket. Per the Ryness Report, a new home tracking service, as of August 9, 2026, year-to-date average sales per project per month in the Inland Empire is 2.8 homes while within the subject’s submarket of Central San Bernardino the year-todate average sales per project per month is 2.9. The two Richmond American neighborhoods are performing at average rates while the two Risewell Home communities are performing below the average absorption rates for the area.

Summary
The Inland Empire had seen substantial increases in pricing since 2012 with most areas, including the subject, showing astronomical increases from mid-2020 into 2025, however there has been a softening of prices in the past year. Due to existing home sales being down when COVID began in spring/early summer 2020, new home sales subsequently shot up due to the existing home market supply being constrained and interest rates hitting all-time lows during COVID. The past four years have seen a slowdown in sales which appears to be due to limited inventory, high home pricing and high interest rates.

The Fontana new-home submarket has seen generally decreasing prices in the past year along with increased incentives. Despite uncertainty hitting the market due to uncertainty in the global economy, interest rates, consumer confidence and inflation, most observers agree that the Inland Empire housing market is healthy, and population growth is still estimated to occur in the area. It is believed that as the population continues to increase, housing growth will also continue, despite a possible economic slowdown. _________________________________________________________________________________________________________ Appraisal Report
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HIGHEST AND BEST USE ANALYSIS
The highest and best use is a basic concept in real estate valuation due to the fact that it represents the underlying premise (i.e., land use) upon which the estimate of value is based. In this report, the highest and best use is defined as:
"the reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value”5
Proper application of this analysis requires the subject property to first be considered “As If Vacant” in order to identify the “ideal” improvements in terms of use, size and timing of development. The existing improvements (if any) are then compared to the “ideal” improvements to determine if the use should be continued, altered or demolished preparatory to redevelopment of the site with a more productive or ideal use. “As If Vacant”
In the following analysis, we have considered the sites probable uses, or those uses which are physically possible; the legality of use, or those uses which are allowed by zoning or deed restrictions; the financially feasible uses, or those uses which generate a positive return on investment; and the maximally productive uses, or those probable permissible uses which combine to give the owner of the land the highest net return on value in the foreseeable future.

Physically Possible Uses
The subject property is irregular in shape, consisting of 36.4 gross acres in four separate parcels per recorded Tract Map No. 20362. The site is generally at the southeast corner of Duncan Canyon Road and Cypress Avenue, all located within the northern portion of the City of Fontana. The lands are essentially level at grade of surrounding streets. The site includes four graded sites, generally bounded by Cypress Avenue to the west, Cassava Drive to the east, Duncan Canyon Road to the north and existing homes south of Shallot Street being the southern boundary. Beyond the surrounding streets is vacant 5 The Appraisal of Real Estate, 11th Edition
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land north of Duncan Canyon Road (future section of Arboretum Specific Plan known as The Resort), The Gardens Phase One (developed by Lennar and sold out) and industrial use on the east. To the south below Casa Grande Road is the master plan of Gabion Ranch which is built and sold out while beyond Cypress Drive to the west is The Meadows, another section within The Arboretum Specific Plan which is built and sold out.

The subject site has been graded for 388 single-family homes, subdivided from four parcels known as Lots 1, 2, 3 and 4 of Tract 20362. The parcels contain 10.835 acres (Lot 1), 6.891 acres (Lot 2), 9.097 acres (Lot 3) and 9.564 acres (Lot 4 ) per the tract map.

Each site has been further subdivided and graded into pads for 388 single family units.

We have reviewed two Soils Reports on the subject sites which concluded that the development of the site into the proposed residential use is feasible; however, all mitigation measures recommended within the reports should be adhered to during construction. We have received some environmental reports to review. It is an assumption of this report that the soil is adequate to support the highest and best use, and that there are no soils or environmental issues which would slow or thwart development of the property. This is evidenced by existing homes on the site which were recently built with City inspectors on site during construction.

An engineered drainage system appears to have been designed into a street drainage system for the entire tract. All standard utilities are available to serve the subject property.

The site has excellent access via I-15, exit Duncan Canyon Road, and east about one mile to the subject. There are two neighborhood shopping centers within two miles of the subject at I-15 and Beech Avenue/Summit Avenue exit, one anchored by Target and Stater Bros. and one by Kohls.

Based on the physical analysis, the size and access make the subject property physically suited for numerous types of development; however, the grading that has occurred on the site suggests residential development.
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Legality of Use
The subject property is located within the City of Fontana in the County of San Bernardino.

We have reviewed a letter from the Planning Division of Fontana which allows for density transfers between planning areas within the Arboretum. Lots 1, 2, 3 and 4 of Tract Map 20362 is allowed to be developed into 388 single-family condominium units. Per the City of Fontana General Plan and their Zoning Map, the subject is shown as within The Arboretum Specific Plan. Per The Arboretum Specific Plan, the site is shown as RMF (Residential Multi-Family with varying densities ranging from 8.1 to 16.1 dwelling units per acre. Lot 1 (Marigold by Risewell Homes) is approved for 124 units with an overall density of 11.4 dwelling units per acre. Lot 2 (Trellis by Risewell Homes) is approved for 90 units for a density of 13.1 dwelling units per acre. Lot 3 (Iris by Richmond American) is approved for 88 units for a density of 9.9 dwelling units per acre while Lot 4 (Flora by Richmond American) is approved for 86 units for a density of 9.0 dwelling units per acre.

These are all within the allowed densities per the Specific Plan.

Based on the legality of use analysis, the type of development for which the subject property can be utilized is narrowed to residential use. This is consistent with the findings of the physically possible uses.

Feasibility of Development
The third and fourth considerations in the highest and best use analysis are economic in nature, i.e., the use that can be expected to be most profitable. As discussed under the Inland Empire Housing Market section earlier within this report, the market had shown strong increases in both sales and pricing since COVID until late 2022 when high home prices and increasing interest rates began to slow sales. Overall home sales have slowed down significantly, partially due to existing homeowners not moving due to the higher interest rates, which is stifling the existing home market, at times leaving new homes the only option for homebuyers. Within The Gardens Phase Two there have been 125 total sales to date with the first sale occurring in January 2025, suggesting an overall sales rate between the four communities of 6.5 sales per month with actual per project absorption rates between 0.8 and 2.9 homes per month with the Richmond American communities generally near the average year to date sales per month in both the Inland Empire (2.8) and the subject’s submarket (2.9). All structures appear to be in excellent _________________________________________________________________________________________________________ Appraisal Report
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condition with no physical depreciation apparent. Within the new home market in Fontana, we found 12 projects (including the four subject neighborhoods) to be most comparable to the subject property. While the market softened beginning the second half of 2022 due to interest rates rising, the Inland Empire is still seeing demand and new homes are still selling, however at slower rates. Our search for land sales found eight land sales within the past 30 months that we consider to be comparable. Population growth is still occurring in the area and will continue to create the need for housing. Based on the above analysis, the highest and best use for the subject property appears to be for single-family residential development at the right price points.

Maximum Productivity
Based on the market activity of residential lands in the immediate area, we have concluded there is a need/demand for residential lands.

Highest and Best Use Conclusion – “As If Vacant”
The final determinant of highest and best use, as if vacant, is the interaction of the previously discussed factors (i.e., physical, legal, financial feasibility and maximum productivity considerations). Based upon the foregoing analysis, it is our opinion that the highest and best use for the subject property is for residential land use.

Highest and Best Use – “As Improved”
The subject property consists of four neighborhoods within the community of The Gardens Phase Two being developed by two homebuilders; Risewell Homes and Richmond American. Risewell Homes began selling in September 2025 with 24 homes sold to date, reflecting a sales rate of 2.2 sales per month spread across the two product lines. Independently, Trellis has a sales rate of 1.4 homes per month and Marigold has an average sales rate of 0.8 homes per month. These rates are below average, however the homes are selling. Richmond American began selling Iris in January 2025 and has sold 51 homes suggesting an average sales rate of 2.7 homes per month while Flora opened for sale in March 2025 and has sold 50 homes suggesting an average sales rate of 2.9 homes per month. These rates are near or slightly above the averages in the area. _________________________________________________________________________________________________________ Appraisal Report
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Base prices at all four of the neighborhoods in The Gardens Phase Two have generally decreased since grand-opening with base price decreases ranging from 0.7 to 10.0 percent depending on the plan and one price increase of 4.7 percent. The absorption rates within the Risewell Homes communities are slower than the subject submarket average (2.9 homes per month) with the Richmond American communities having a similar sales rate to the average. In addition, prices on all plans have been decreasing as the builders try to find the market’s correct price points. Builders are offering concessions to increase absorption rates in the area. In marketing The Gardens Phase Two, the builders are all offering concessions, including rate buy-downs and help with closing costs, on a case-by-case basis, at times offering significant amounts if a house is standing inventory. These concessions have ranged from $5,000 to $87,076 with an average of $42,411 per closed sale for Richmond American and an average of $34,479 for Risewell Homes. Per Empire Economics’ Price Point Review Study, the plan pricing (including incentives being offered) has increased on all plans with an average increase of 7.59 percent between proposed pricing in January 2024 and current pricing. All of the homes are of good design and appear to be of good quality workmanship. It appears the homes by Richmond American within The Gardens Phase Two are being well received, and the neighborhoods are selling at or near the correct price points for the area. It appears the homes by Risewell Homes are selling at below average sales rates and may need additional concessions or price reductions; however, they are still selling. Based on the above information, it is concluded that the highest and best use for the subject property is for the continued use, as improved.
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VALUATION ANALYSIS AND CONCLUSIONS
The Sales Comparison Approach will be used to value the subject property. This approach compares similar properties that have recently sold or are in escrow. In determining the value for the subject lands, a unit of comparison needs to be addressed.

For single-family detached condominium lots, cluster residential lands and small lot lands, all are typically sold on the basis of a finished pad/lot per unit. That is, the sales price is determined by a finished pad or lot value and then the remaining costs to develop the property to a true finished condition are taken into account in the sales price. Therefore, in determining a current market value for the lands, the current condition of the pads will be considered. Our search revealed several transactions similar to the subject property in that they include either single-family detached cluster or detached condominium lots along with some attached product with the different densities typically driving the prices.

At times, the detached condominium and attached transactions are typically looked at on a blended price per unit, taking into consideration the overall density of the neighborhood.

The Risewell pads have a density range of 11.5 – 13.0 dwelling units per acre which is considered similar. The Richmond American pads have a density range of 9.0 to 9.7 which is considered similar. Thus, we will value each ownership separately based on density.

In the case of the completed home valuations, a single new home is the unit of comparison. Our search will include all new home projects within the subject’s immediate and surrounding market area to find comparable new homes for sale. In determining the value for each house, a base value will be concluded for each plan which will be considered a minimum market value as most buyers typically purchase some premiums, upgrades or options which increase the price of the home. The minimum market value also includes all concessions given by the builder including mortgage closing costs and buy-downs (which are not included in the reported sales prices), if applicable.

For the completed (over 95 percent complete) builder-owned models and production houses, the homes will be valued using the Sales Comparison Approach to conclude on _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 65
a retail value for each plan, followed by a Discounted Cash Flow (“DCF”) Analysis due to the single ownership. The DCF will take into account the fair market value of the completed homes (utilizing the Sales Comparison Approach), remaining development costs (if any), the marketing and carrying costs associated with selling off the homes, a profit due to the developer of the homes, and a discount rate reflecting both the risk associated with selling off the homes along with the time value of money during the estimated absorption period. A home under construction (under 95 percent complete) will be valued as a finished pad rather than attribute value to a partially complete improvement. In the case of individually owned homes, the concluded minimum market value will be used for each plan and a mass appraisal technique will be addressed. In determining the concluded base value, new home sales in the area will be reviewed and compared with sales of the subject completed homes using standard methodology and statistical testing. All of the value conclusions will take into consideration improvements and/or benefits to be funded by the Fontana CFD No. 113 Special Tax Bonds and their lien. A summary of the final value conclusions will be reported at the end of this valuation section.

Market Data Discussion – Residential Lots
Within The Gardens Phase Two there are 388 lots/pads in a generally physically finished condition with 173 being developed with homes either complete or over 95 percent complete. The completed homes will be valued later in this report. Deducting the 173 developed homes from the 388 total pads leaves 215 pads to be valued in this section, 177 under the Risewell or TPG AG ownership and 38 under the Richmond American ownership. The above total pads include homes under construction as a home under construction (under 95 percent complete) will be valued as a finished lot rather than attribute value to a partially complete improvement.

We have searched the area and found the eight transactions summarized in the Addenda to be most comparable to the subject property. The sales are reported both on a purchase price basis and on a finished lot/pad basis. The actual purchase price is typically less, depending on the condition of the land (lots or pads) at the time the property was acquired. _________________________________________________________________________________________________________ Appraisal Report
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Although some sales refer to “finished lots/pads,” these are typically physically finished lots/pads with some fees remaining to be paid to be considered true finished lots/pads.

Below are the details of each of the comparable land sales along with a discussion of each transaction in relationship to the subject property.

Land Sale No. 1 pertains to the most recent closed transaction in our search. The site is located about 2.5 miles southwest of the subject property along the south side of Highland Avenue at Knox Street in North Fontana, just south of the I-210. Lennar purchased the site which is mapped for 393 units with an overall density of 13 dwelling units per acre.

The product includes townhomes along with two cluster detached products. Lennar purchased the site in June 2026 from Fontana Investment 2023, LLC (a related entity to Diversified Pacific) for $43,161,500 or for $109,826 per unit based on a reported blended finished lot/pad price of $231,000. The site closed in an unimproved condition with an approved tentative tract map and a final map in process. In comparison to the subject property, this transaction is similar to the Risewell property due to the overall density of 13 dwelling units per acre. Overall, this location is considered to be slightly inferior as it is not associated with a master planned community with significant amenities like The Arboretum as is the subject and inferior in condition at lands at time of sale. While the development costs are taken into consideration in the finished lot/pad price, the risk associated with the development of the lands is not.

Land Sale Nos. 2, 5 and 6 refer to three land sales within the new area in Ontario Ranch known as The Resort. The resort is located northeast of Merrill and Bellegrave Avenues, just north of the City of Eastvale. The Lewis Group of Companies has obtained entitlements and developed the overall master plan and is selling planning areas to homebuilders. The Resort will have significant amenities with a pool/spa with cabanas, a clubhouse with a fitness center, pickleball courts, basketball court, dog park, tot lots, and an open lawn area.

Land Sale No. 2 pertains to Richmond American purchasing land for 100 detached units with an overall density of 17 dwelling units per acre (2 and 3 story motor court) in January _________________________________________________________________________________________________________ Appraisal Report
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2026 for $25,501,000 which equates to $255,010 per unit based on a finished lot value estimated at $350,000. Richmond American is marketing their 2 and 3-story detached homes as “coming soon” in the neighborhood known as Aspire with sizes from 1,471 to 1,816 square feet and no pricing available at this time.

Land Sale No. 5 pertains to Tripointe Homes purchased in October 2025, of lands for 58 proposed units which are attached townhomes with an overall density of 22 dwelling units per acre. Tripointe Homes purchased the site for $8,541,500 or $147,267 per unit based on a $205,000 finished lot. This is the first of two takedowns with the total lot count of 116 proposed units. TriPointe Homes is now selling their attached 3-story attached townhomes known as Reprise with sizes ranging from 1,271 to 2,330 square feet and pricing from the $500,000s to $700,000s.

Land Sale No. 6 refers to the Richmond American purchase of lands in October 2025, slated for 155 three-story detached condominiums with an overall density of 16 dwelling units per acre. Richmond American purchased the lands based on an estimated finished lot of $315,000. Richmond American is currently selling their Momentum neighborhood of 3-story detached homes ranging from 1,987 to 2,215 square feet with prices beginning in the $700,000s.

In comparison to the subject property, the amenities within The Resort are similar to the Arboretum, however these The Resort is located about 14.5 miles southwest of the subject property in a superior location, at the south-end of Ontario Ranch. The Resort will be adjacent to the City of Eastvale which is closer in to Orange, Los Angeles and Riverside for commuters which is considered superior to the subject’s Fontana location.

Land Sale No. 3 refers to the sale, closest in proximity to the subject property. KB Home purchased the lands proposed for 2 and 3-story townhomes with an overall density of 17 dwelling units per acre in January 2026. The lands are located in the master plan of Ventana which is located just west of the subject property at the SWC of Duncan Canyon Road and Citrus Avenue in Fontana. This sales location is about 0.5 miles immediately _________________________________________________________________________________________________________ Appraisal Report
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west of the subject property. The northern portion of Ventana has been developed with Vasari at Ventana, a successful executive-type apartment complex which is north of Duncan Canyon Road. KB Home will be developing 217 units in two product lines, both two-story and three-story townhomes. They purchased the lands for $23,250,000 or $107,143 per unit based on an estimated blended finished lot price of $209,000. The overall density of the site is 17 dwelling units per acre. In comparison to the subject lands, the density of this site is considered to be inferior to the subject property densities of 9 to 14 dwelling units per acre.

Land Sale No. 4 refers to the sale of an in-fill site entitled for 76 small lots located in Eastvale, approximately 18 miles southwest of the subject property at Grapewin Street, just east of Archibald. Richmond American Homes purchased the site in November 2025 for $5,900,000 or $77,632 per lot based on an estimated finished lot price of $380,000.

The land was in an unimproved condition at time of sale with an approved map. The site will be developed into 76 detached condominium lot homes with an overall density of 9 dwelling units per acre. In comparison to the subject property, this site is considered to be superior in location as it is in Eastvale, closer to Orange, Los Angeles and Riverside for commuters. This sale is considered to be inferior due to the unimproved condition.

While the cost of land development is taken into consideration, there is risk associated with unimproved land.

Land Sale No. 7 pertains to the purchase of a large site entitled for 351 homes, located in Ontario Ranch at the southwest corner of Eucalyptus and Haven Avenues. KB Home purchased the site in June 2024 and is now selling their master planned community of Compass Pointe. KB Homes purchased the site for $85,000,000 or $242,165 per unit based on a blended finished lot price of $380,000. The 351 proposed units are located on about 46 acres, however there is a high-wire Edison easement bisecting the site. The overall density of the site equates to about eight dwelling units per acre. There are three proposed products on the site which include 4,500 square foot conventional lots, detached cluster units and attached townhomes. Per brokers familiar with the transaction, the townhomes estimated finished unit price is $280,000, the cluster product finished pad _________________________________________________________________________________________________________ Appraisal Report
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price is $410,000 while the 4,500 square foot lots are estimated at a finished lot of $560,000. This is higher than previous sales in the area. KB Home is now selling Equinox (1,358 to 1,764 square feet attached townhomes) from the mid-$500,000s; Meridian (2,024-2,548 square feet detached) from the low $700,000s and Solstice (2,393 to 2,872 detached) from the high $800,000s. Ontario Ranch is considered to be superior to Fontana due to being located closer to Orange, Los Angeles and Riverside County employment centers for commuters. The high wire easement is considered to be inferior to the subject.

Land Sale No. 8 is located in Fontana, about 8.5 miles south of the subject property near the city of Jurupa Valley. The site is southeast of Live Oak Avenue and Cherry Avenue.

KB Home purchased the site in April 2024 for $31,100,000 or $121,961 per unit based upon a blended finished lot estimated price of $252,000. The site was unimproved at time of sale with an approved tentative map for two detached products, one 8-pack cluster product and one alley-load product with an overall density of eight dwelling units per acre.

KB Home is now selling their Arbor at Parkview neighborhood (1,669 – 2,000 square feet) from the mid $500,000s and their Canopy at Parkview (1,791 to 2,320 square feet) from the high $500,000s. In comparison to the subject property, the density of this sale is similar to the Richmond American neighborhoods within the subject property, however the in-fill site is surrounded to the east by open space and to the west by developed homes which is considered to be slightly superior to the subject. In addition, the unimproved lands are considered to be inferior to the subject’s generally finished pads.

While the cost of development is considered, the risk is not.

The chart on the following page summarizes the considerations used in adjusting the market data to the subject property.

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Data
No. Location Date of Sale
Lot Size /
Density
Finished
Lot Price Comparison to Subject
1 Fontana 6/26 13 du/ac
Blended
$231,000
Blended
Inferior Product (some Attached) and
amenities and Condition
2 Ontario Ranch 1/26 17 du/ac $350,000 Superior – Location Inferior – Density
3 North Fontana 1/26 17 du/ac
Attached $209,000 Inferior – Product (Attached) & Density 4 Eastvale 11/25 9 du/ac $380,000 Superior – Location
Inferior - Condition
5 Ontario Ranch 10/25 22 du/ac $205,000 Superior – Location Inferior - Density
6 Ontario Ranch 10/25 16 du/ac $315,000 Superior – Location Inferior - Density
7 Ontario Ranch 6 / 24 8 du/ac
$380,000
($560,000/
$410,000/
$280,000)
Superior – Location,
Inferior – Highwire Easement
8 Fontana 4 / 24 8 du/ac $252,000 Inferior – Amenities & Condition All of the market data transactions are considered similar in density and have closed within the past 30 months with three closed transactions in Fontana, four in Ontario Ranch and one in Eastvale. The above reported finished lot values depict a wide range of lot/pad price from $205,000 to $560,000 with the majority of the differences being due to density on each site, product (attached or detached) and location. Sale Nos. 1, 3, 7 and 8 all pertain to blended transactions, with two or three products being developed within one master plan. The subject property includes Trellis and Marigold by Risewell with an overall density of 11.4 – 13.0 dwelling units per acre while Iris and Flora by Richmond American have overall densities of 9.7 and 8.9 dwelling units per acre. We will conclude at a blended value for each ownership. Data Nos. 2, 4, 5, 6 and 7 relate to sales either in Ontario Ranch or Eastvale which is considered a superior location as it is about 15 miles closer in for commuters to Orange, Los Angeles and Riverside. The Fontana sales (Nos. 1, 3 and 8) are considered to be most comparable in location and range from $209,000 to $252,000. Data No. 8 is a lower density sale in Fontana, however it sold over two years ago. The market was increasing until early 2026, with a softening since then. The attached sales (Nos. 3, 5 and a portion of 1 and 7) finished lot prices are at the low-end of the range from $205,000 to $280,000. The subject products are all detached with the exception of the carriage house (up above the garages) in Trellis. _________________________________________________________________________________________________________ Appraisal Report
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Trellis and Marigold are within a gated community with significant amenities including a pool, basketball courts, pickle ball courts and social club. The most recent sale (Data No. 1) has an overall density of 13 dwelling units per acre which is similar to Trellis and Marigold’s densities. However, Land Sale No. 1 has some detached product and some attached townhomes. It sold for a blended price of $231,000 per unit. Risewell purchased their lands in October 2024 based on an estimated finished lot price of $233,000 for the Marigold property (11.4 dwelling units per acre) and $200,000 for Trellis (13.1 dwelling units per acre. We have concluded on a blended finished pad price for Trellis and Marigold of $235,000.

Iris and Flora are within a gated community with significant amenities including a pool, basketball courts, pickle ball courts and a social club. The most recent sale has a higher overall density and sold for $231,000. Data No. 8 has a more similar overall density to Iris and Flora at 8.0 dwelling units per acre and sold for $252,000, however this transaction was back in 2024. Per Richmond American representatives, the lands sold in January 2024 at a reported blended finished lot price of $284,000. Land prices increased between January 2024 and March 2026 with a softening since then. We have concluded that Iris and Flora have a blended finished pad price of $285,000.

Trellis
The concluded value for the Trellis pads in a finished condition is $235,000. There are 68 pads (14 owned by Risewell and 54 owned by TPG AG). The homes under construction are valued on the basis of a finished lot rather than attribute value to a partially complete improvement. As discussed above, there are remaining land development costs/fees within Trellis are estimated at $14,615.38 per unit. The values are calculated as follows:

Risewell Ownership
14 pads x $235,000 $ 3,290,000
Less: $14,615.38 x 14 ( 204,615)
As is Value 14 Trellis Pads $ 3,085,385
TPG AG Ownership
54 pads x $235,000 $ 12,690,000
Less: $14,615.38 x 54 ( 789,231)
As is Value 54 Trellis Pads $ 11,900,769
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Marigold
The concluded value for the Marigold pads in a finished condition is $235,000. There are 109 pads (22 owned by Risewell and 87 owned by TPG AG). The homes under construction are valued on the basis of a finished lot rather than attribute value to a partially complete improvement. As discussed above, there are remaining land development costs/fees within Marigold are estimated at $14,521.74 per unit. The remaining land development costs/fees are considered in this valuation. The values are calculated as follows:

Risewell Ownership
21 pads x $235,000 $ 4,935,000
Less: $14,521.74 x 21 ( 304,956)
As is Value 21 Marigold Pads $ 4,630,044
TPG AG Ownership
88 pads x $235,000 $ 20,680,000
Less: $14,521.74 x 88 ( 1,277,913)
As is Value 88 Marigold Pads $ 19,402,087
Iris
The concluded value for the Iris pads in a finished condition is $285,000. There are 19 remaining pads. As discussed above, the remaining land development costs for Iris are $6,113.47 per unit. The remaining land development costs/fees are considered in this valuation. The values are calculated as follows:

Richmond American Ownership
19 pads x $285,000 $ 5,415,000
Less: $6,113.47 x 19 ( 116,156)
As is Value 19 Iris Pads $ 5,298,844
Flora
The concluded value for the Flora pads in a finished condition is $285,000. There are 19 remaining pads. As discussed above, the remaining land development costs for Flora are $9,711.92 per unit. The remaining land development costs/fees are considered in this valuation. The values are calculated as follows:
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Richmond American Ownership
19 pads x $285,000 $ 5,415,000
Less: $9,711.92 x 19 ( 184,526)
As is Value 19 Flora Pads $ 5,230,474
RETAIL HOUSE VALUATIONS – THE GARDENS PHASE TWO
Within The Gardens Phase Two there are four neighborhoods being marketed by two builders. Each neighborhood will be valued below. Within Trellis there are 12 individually owned homes, three models and seven production homes over 95 percent complete (3 in escrow) owned by Risewell Homes. Within Marigold there are nine individually owned homes, four models and two production homes over 95 percent complete owned by Risewell Homes. Within Iris there are 50 individually owned homes, four models and 15 production homes (1 in escrow) owned by Richmond American. Within Flora there are 49 individually owned homes, four model homes and 14 production homes over 95 percent complete (one in escrow), owned by Richmond American.

Due to the single ownership of multiple houses by a builder within the subject property, a Discounted Cash Flow (“DCF”) analysis is needed in order to arrive at a bulk value for the homes. This will be further discussed below. Prior to completing a DCF, the retail value of the homes needs to be determined. For purposes of this valuation, the retail value is based on actual sales prices less all concessions including rate buy-downs, along with reviewing all comparable homes in the subject marketplace.

Below is a summary of the floor plans within each neighborhood followed by a valuation for each plan and a discounted cash flow for each neighborhood. A listing of the improved residential comparable properties is located in the Addenda of this report. The majority of the new home comparables are located within the City of Fontana, which currently houses a multitude of actively selling new home communities with the addition of a master planned community in Rialto within about 3.5 miles of the subject property. Our search of the subject property and the local Multiple Listing Service (MLS) has resulted in no resales and one current resale listing within The Gardens Phase Two which will be discussed below. _________________________________________________________________________________________________________ Appraisal Report
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Trellis
Trellis by Risewell homes include Plan 1 which is a carriage house up over three, two-car garages. The homes are built in a triplex format, however, Plans 2 and 3 are detached with their garages under Plan 1 and are not attached to the homes, thus have a detached garage. *One of each of these plans is a model home. There are an additional 11 homes under construction, and 57 remaining pads (not shown on the above table).

The most appropriate new home comparable data for Trellis Plan 1 are shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 1 3 / 2 1 / 2 1,530 --
1 2 4 / 3 2 / 2 1,567 $345.25
1 3 4 / 3 2 / 2 1,667 $338.93
2 1 3 / 2.5 2 / 2 1,656 $342.39
6 1 3 / 2.5 2 / 2 1,669 $335.52
8 1 3 / 2.5 2 / 2 1,500 $342.79
12 1 3 / 2.5 2 / 2 1,478 $347.76
The comparable communities are all located in Fontana with the exception of the homes within Renaissance, a master plan which is located in the adjacent city of Rialto, about 3.5 miles southeast of the subject. All are of similar quality, design, and appeal. Plan 1 within Trellis is a carriage house single level above three attached two-car garages. There is no other carriage home product selling, thus we included a stacked flat condominium (Data No. 8), cluster and alley-load homes which are considered similar. Adjustments were considered (when applicable) for location, school districts, lot size, master plan amenities, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $335.52 to $347.76 per square foot. Trellis Plan 1 has a current base asking price of $330.72 per square foot, which is lower than the comparable ranges. This is due to the single floor home located upstairs over garages. It should be noted that the base prices do not take into consideration the mortgage concessions (either rate buy-downs or closing cost assistance).

The Gardens Phase Two
Plan Bd/Ba
Floors/
Parking Sq. Ft.

Ind.

Owned
Bldr.

Owned
Trellis by Risewell
1 3 / 2 1 / 2 1,530 4 3*
2 4 / 3 2 / 2 1,567 4 3*
3 4 / 3 2 / 2 1,667 4 4*
Subtotal Trellis 12 10
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There have been four closings of Trellis Plan 1 with net sales prices ranging from $336.27 to $339.86 per square foot. There are two current escrows of Trellis Plan 1 with a sales price range of $350.32 to $350.97, however rate buy-downs are estimated at $20,000 and there is no closing cost help anticipated in these escrows. It should be noted that the reported sales prices include upgrades, premiums, and options along with all concessions given by the builder, while the concluded value relates to a base price for the plan including closing cost concessions. Closing cost concessions do not show up in the reported sales price of the home, however, are a cost of selling the home and are included in this analysis. It has been concluded that Trellis Plan 1 has a base current market value of $325.00 per square foot. This calculates as follows:
1,530 sf x $325.00 = $497,250
The most appropriate new home comparable data for Trellis Plan 2 are shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 2 4 / 3 2 / 2 1,567 --
1 1 3 / 2.5 1 / 2 1,530 $330.72
1 3 4 / 3 2 / 2 1,667 $338.93
2 1 3 / 2.5 2 / 2 1,656 $342.39
2 2 3 / 2.5 2 / 2 1,760 $335.23
6 1 3 / 2.5 2 / 2 1,669 $335.52
10 1 3 / 2.5 2 / 2 1,665 $324.08
12 1 3 / 2.5 2 / 2 1,478 $347.76
12 2 3 / 2.5 2 / 2 1,639 $329.76
The comparable communities are all located in Fontana with the exception of the homes within Renaissance, a master plan which is located in the adjacent city of Rialto, about 3.5 miles southeast of the subject. All are of similar quality, design, and appeal. Plan 2 within Trellis is a detached home with a detached garage that supports the Plan 1 carriage house (single level above three two-car garages). We have included cluster and alley-load homes which are considered similar. Adjustments were considered (when applicable) for location, school districts, lot size, master plan amenities, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. _________________________________________________________________________________________________________ Appraisal Report
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The new home comparables have a base price range from $324.08 to $347.76 with the highest priced homes per square foot, being the smallest home. This is typical due to the economies of scale obtained during construction of the homes. Trellis Plan 2 has a current base asking price of $345.25 per square foot. It should be noted that the base prices do not take into consideration the mortgage concessions (either rate buy-downs or closing cost assistance). There have been four closings of Trellis Plan 2 with net sales prices ranging from $351.62 to $362.63 per square foot. There is one current escrow of Trellis Plan 2 with a sales price of $349.23. It should be noted that the reported sales prices include upgrades, premiums, and options along with all concessions given by the builder, while the concluded value relates to a base price for the plan including closing cost concessions. Closing cost concessions do not show up in the reported sales price of the home, however, are a cost of selling the home and are included in this analysis. It has been concluded that Trellis Plan 2 has a base current market value of $330.00 per square foot. This calculates as follows:
1,567 sf x $330.00 = $517,110
The most appropriate new home comparable data for Trellis Plan 3 are shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 3 4 / 3 2 / 2 1,667 --
1 1 3 / 2.5 1 / 2 1,530 $330.72
1 2 4 / 3 2 / 2 1,567 $345.25
2 1 3 / 2.5 2 / 2 1,656 $342.39
2 2 3 / 2.5 2 / 2 1,760 $335.23
3 1 3 / 2.5 2 / 2 1,750 $349.72
6 1 3 / 2.5 2 / 2 1,669 $335.52
10 1 3 / 2.5 2 / 2 1,665 $324.08
12 3 4 / 3 2 / 2 1,790 $313.69
The comparable communities are all located in Fontana with the exception of the homes within Renaissance, a master plan which is located in the adjacent city of Rialto, about 3.5 miles southeast of the subject. All are of similar quality, design, and appeal. Plan 3 within Trellis is a detached home with a detached garage that supports the Plan 1 carriage house (single level above three two-car garages). We have included cluster and alley-load homes _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 77
which are considered similar. Adjustments were considered (when applicable) for location, school districts, lot size, master plan amenities, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities.

The new home comparables have a base price range from $313.69 to $349.72 with the lowest priced home per square foot, being the largest home. This is typical due to the economies of scale obtained during construction of the homes. Trellis Plan 3 has a current base asking price of $338.93 per square foot. It should be noted that the base prices do not take into consideration the mortgage concessions (either rate buy-downs or closing cost assistance). There have been four closings of Trellis Plan 3 with net sales prices ranging from $341.57 to $346.72 per square foot. There are no current escrows of Trellis Plan 3. It should be noted that the reported sales prices include upgrades, premiums, and options along with all concessions given by the builder, while the concluded value relates to a base price for the plan including closing cost concessions. Closing cost concessions do not show up in the reported sales price of the home, however, are a cost of selling the home and are considered in this analysis. It has been concluded that Trellis Plan 3 has a base current market value of $320.00 per square foot. This calculates as follows:
1,667 sf x $320.00 = $533,440
Trellis Discounted Cash Flow Analysis
Due to the single ownership of multiple houses (ten houses) by the builder within Trellis, a Discounted Cash Flow (“DCF”) analysis is needed in order to arrive at a bulk value for the homes within each neighborhood. First, a retail value for each plan within Trellis will be concluded followed by a DCF for the builder owned homes which will take into account the absorption time to sell off the homes, the costs associated with selling off the homes and any remaining costs owed by the builder, if any. The resulting revenue will be discounted using an appropriate rate to determine the builder-owned bulk value for the builder-owned homes. The DCF builder-owned final value will be followed by a reporting of the concluded values for the individually owned homes within Trellis using the concluded base retail value for each plan with a separate check of the analysis utilizing a mass appraisal technique based on actual sales prices of the homes. Each neighborhood will be valued in a similar way following Trellis.
_________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 78
Builder Owned Retail Value – Trellis
Within the subject property, there are ten builder-owned houses over 95 percent complete, three of which are decorated models. Per interviews with builders, upgrades and landscape/hardscape of up to $100,000 are installed in the model homes, however, the builders generally consider this a marketing cost and do not anticipate recovering this investment on a dollar-for-dollar basis. Based on historical information, home sizes and fixtures, actual model home sales within the subject area and the current real estate market, a consideration of a $50,000 premium has been included with each of the model homes. As concluded above, the retail base value conclusions for the builder-owned homes within Trellis are calculated below:

Trellis Plan 1 (3 x $497,250) $ 1,491,750
Trellis Plan 2 (3 x $517,110) 1,551,330
Trellis Plan 3 (4 x $533,440) 2,133,760
Model Upgrades (3 x $50,000) 150,000
Total Trellis Retail Value $ 5,326,840
Absorption Period
In order to arrive at an absorption period for the ten builder-owned homes, the absorption rate for Trellis along with the surrounding developments has been reviewed. Trellis had an absorption period of 1.4 sales per month. The market comparables have a range of 0.8 to

8.7 sales per month. Taking into consideration the product, concluded sales prices and current escrows, along with the current interest rates, it has been concluded that the ten builder-owned homes within Trellis will be absorbed within a ten-month time period at the concluded values.

Remaining Costs
As discussed under the remaining costs section earlier within this report, there is $14,615.38 per home/lot/pad in remaining land development costs and fees associated with the Trellis builder-owned homes, which equates to a total of $146,154 for the subject ten homes. It is an assumption of this analysis that the remaining costs will be spread evenly over the ten-month absorption time period.
_________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 79
Expenses
In determining an expense rate, several builders in the subject area have been interviewed as to their expenses on selling existing inventory. Expenses include marketing and general administrative costs. These costs typically range from six to ten percent depending on varying factors such as absorption period, intensity of marketing, etc. Due to the current soft market, we are considering eight percent for marketing expenses and two percent for general and administrative costs for a total of ten percent in expenses for this analysis.

Profit
Several interviews with merchant builders in the area were conducted in order to determine an appropriate profit percentage for the subject property In the early 2000s, developers typically attempted to achieve a 10 to 12 percent profit based on gross sales proceeds. During the early great recession, this range was lowered considerably to six to 10 percent with some builders drastically lowering their profit potential in order to maintain their work force. A ten percent profit is considered appropriate in the analysis for this project.

Discount Rate
In selecting a discount rate, the following was completed:

1. Interviews with merchant builders in the San Bernardino area

2. Review of current market conditions including current market rates as well as yields reflected in other markets (i.e., municipal bonds, corporate bonds, etc.)

3. The quality, construction, historical sales and product on the subject property The homes within Trellis began selling in September 2025 with the product being slowly received in the marketplace with a 1.4 sales per month absorption. The market comparables have an absorption range from 0.8 to 8.7 sales per month, however the highest in the range of 8.7 sales per month is for a newly opened community in an in-fill neighborhood with minimal new homes surrounding it. The remaining data have sales per month ranging from

0.8 to 5.2. This compares to the overall Inland Empire average sales rate per community of

2.8 sales per month (year to date as of August 9, 2026). The subject is performing below the average of the overall market. Based on the sales rate within Trellis, the competition, the _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 80
product and location, and current market conditions, a twelve percent discount rate is considered appropriate for this analysis.

Discounted Cash Flow Summary
The discounted revenue (see DCF Analyses in addenda) for the builder-owned homes within Trellis is $3,937,834.

Trellis Builder/Investor Ownership Totals
Risewell owns 10 homes over 95 percent complete (including three models) along with 11 houses under construction and three finished pads. The homes under construction have been valued as a finished lot rather than attribute value to a partially complete improvement.

The concluded values are as follows:

Risewell Homes (14 pads “as is”) $ 3,085,385
Risewell Homes (10 Houses) 3,937,834
Subtotal Risewell Ownership Trellis $ 7,023,219

TPG AG Ownership (54 Pads – “as is”) $11,900,769
Trellis Individual Owners Value Conclusion
There are 12 individually owned homes within Trellis. Based on the concluded value for each plan, the individually owned homes within the subject property have a minimum market value of:

Trellis Plan 1 (4 x $497,250) $ 1,989,000
Trellis Plan 2 (4 x $517,110) 2,068,440
Trellis Plan 3 (4 x $533,440) 2,133,760
Total Trellis Individual Value $ 6,191,200
In additional review, we have reviewed the original builder sales prices for the homes within Trellis. Closings for the 12 homes occurred between January 23, 2026, and April 30, 2026. The reported closing prices by the builder for the 12 individually owned homes total $6,604,001 which is 6.3 percent higher than the concluded value. The builder’s reported prices include premiums, upgrades and purchased options as well as taking into consideration all concessions given by the builder, including closing costs and mortgage _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 81
buydowns. The above valuation is for the minimum market value, as it takes into consideration the base plan price only and does not take into account any options, premiums or upgrades which were purchased by the buyers; however, it does take all concessions into consideration. It is our conclusion that the original builder sales prices further substantiate the concluded minimum market value for the individually owned homes.

Marigold
Marigold by Risewell homes include four plans, however Plan 4 has not yet been built as a production home, just the model is complete. The homes are built in an alley load detached format with attached garages.
*One of each of these plans is a model home. There are an additional 109 pads (not shown on the above table).

The most appropriate new home comparable data for Marigold Plan 1 are shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 1 3 / 2.5 2 / 2 1,656 --
1 2 4 / 3 2 / 2 1,567 $345.25
1 3 4 / 3 2 / 2 1,667 $338.93
2 2 3 / 2.5 2 / 2 1,760 $335.23
3 1 3 / 2.5 2 / 2 1,750 $333.71
6 1 3 / 2.5 2 / 2 1,669 $335.52
10 1 3 / 2.5 2 / 2 1,665 $324.08
12 2 3 / 2.5 2 / 2 1,639 $329.76
The comparable communities are all located in Fontana with the exception of the homes within Renaissance, a master plan which is located in the adjacent city of Rialto, about 3.5 miles southeast of the subject. All are of similar quality, design, and appeal. Adjustments The Gardens Phase Two
Plan Bd/Ba
Floors/
Parking Sq. Ft.

Ind.

Owned
Bldr.

Owned
Marigold by Risewell
1 3 / 2.5 2 / 2 1,656 4 2*
2 3 / 2.5 2 / 2 1,760 3 2*
3 4 / 2.5 2 / 2 1,870 2 1*
4 4 / 3 2 / 2 1,979 0 1*
Subtotal Marigold 9 6
_________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 82
were considered (when applicable) for location, school districts, lot size, master plan amenities, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $324.08 to $349.72 per square foot. Marigold Plan 1 has a current base asking price of $342.39 per square foot, however, they haven’t offered one on the market since May. It should be noted that the base prices do not take into consideration the mortgage concessions (either rate buy-downs or closing cost assistance). There have been four closings of Marigold Plan 1 with net sales prices ranging from $367.37 to $372.79 per square foot. There are no current escrows of Marigold Plan 1. It should be noted that the reported sales prices include upgrades, premiums, and options along with all concessions given by the builder, while the concluded value relates to a base price for the plan including closing cost concessions. Closing cost concessions do not show up in the reported sales price of the home, however, are a cost of selling the home and are included in this analysis.

It has been concluded that Marigold Plan 1 has a base current market value of $325.00 per square foot. This calculates as follows:
1,656 sf x $325.00 = $538,200
The most appropriate new home comparable data for Marigold Plan 2 are shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 2 3 / 2.5 2 / 2 1,760 --
1 3 4 / 3 2 / 2 1,667 $338.93
2 1 3 / 2.5 2 / 2 1,656 $342.39
2 3 4 / 2.5 2 / 2 1,870 $339.57
3 1 3 / 2.5 2 / 2 1,750 $333.71
3 2 3 / 2.5 2 / 2 1,830 $328.42
6 1 3 / 2.5 2 / 2 1,669 $335.52
6 2 3 / 2.5 2 / 2 1,877 $309.52
7 1 3 / 2.5 2 / 2 1,791 $314.34
The comparable communities are all located in Fontana. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, school districts, lot size, master plan amenities, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 83
home comparables have a base price range from $309.52 to $349.72 per square foot.

Marigold Plan 2 has a current base asking price of $335.23 per square foot. It should be noted that the base prices do not take into consideration the mortgage concessions (either rate buy-downs or closing cost assistance). There have been three closings of Marigold Plan 2 with net sales prices ranging from $347.44 to $376.70 per square foot. There are no current escrows of Marigold Plan 2. It should be noted that the reported net sales prices include upgrades, premiums, and options along with all concessions given by the builder, while the concluded value relates to a base price for the plan including closing cost concessions. Closing cost concessions do not show up in the reported sales price of the home, however, are a cost of selling the home and are included in this analysis. It has been concluded that Marigold Plan 2 has a base current market value of $320.00 per square foot.

This calculates as follows:
1,760 sf x $320.00 = $563,200
The most appropriate new home comparable data for Marigold Plan 3 are shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 3 4 / 2.5 2 / 2 1,870 --
1 3 4 / 3 2 / 2 1,667 $338.93
2 2 3 / 2.5 2 / 2 1,760 $335.23
2 4 4 / 3 2 / 2 1,979 $336.03
3 2 3 / 2.5 2 / 2 1,830 $328.42
3 3 4 / 3.5 2 / 2 1,840 $329.34
4 1 3 / 3 2 / 2 1,850 $339.46
6 2 3 / 2.5 2 / 2 1,877 $309.53
7 1 3 / 2.5 2 / 2 1,791 $314.34
The comparable communities are all located in Fontana Adjustments were considered (when applicable) for location, school districts, lot size, master plan amenities, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $309.53 to $339.46. Marigold Plan 3 has a current base asking price of $339.57 per square foot. It should be noted that the base prices do not take into consideration the mortgage _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 84
concessions (either rate buy-downs or closing cost assistance). There have been two closings of Marigold Plan 3 with net sales prices ranging from $348.90 to $349.99 per square foot. There are no current escrows of Marigold Plan 3. It should be noted that the reported net sales prices include upgrades, premiums, and options along with all concessions given by the builder, while the concluded value relates to a base price for the plan including closing cost concessions. Closing cost concessions do not show up in the reported sales price of the home, however, are a cost of selling the home and are included in this analysis. It has been concluded that Marigold Plan 3 has a base current market value of $315.00 per square foot. This calculates as follows:
1,870 sf x $315.00 = $589,050
The most appropriate new home comparable data for Marigold Plan 4 are shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 4 4 / 3 2 / 2 1,979 --
2 3 4 / 2.5 2 / 2 1,870 $339.57
3 3 4 / 3.5 2 / 2 1,840 $329.34
3 4 4 / 2.5 2 / 2 1,950 $316.92
4 3 4 / 3.5 2 / 2 2,070 $313.53
5 1 3 / 2.5 2 / 2 2,099 $348.26
6 3 4 / 2.5 2 / 2 2,000 $297.50
7 2 3 / 2.5 2 / 2 2,056 $288.91
The comparable communities are all located in Fontana. Adjustments were considered (when applicable) for location, school districts, lot size, master plan amenities, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $288.91 to $348.26 with the highest price per square foot being the smallest sized home.

This is typical due to the economies of scale obtained during construction. Marigold Plan 4 has a current base asking price of $336.03 per square foot. It should be noted that the base prices do not take into consideration the mortgage concessions (either rate buy-downs or closing cost assistance). There have not been any closings of Marigold Plan 4. The model is complete and they are planning on building Plan 4’s beginning in Phase 5 in the near _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 85
future. It should be noted that the reported sales prices include upgrades, premiums, and options along with all concessions given by the builder, while the concluded value relates to a base price for the plan including closing cost concessions. Closing cost concessions do not show up in the reported sales price of the home, however, are a cost of selling the home and are included in this analysis. It has been concluded that Marigold Plan 4 has a base current market value of $302.00 per square foot. This calculates as follows:
1,979 sf x $302.00 = $597,658
Marigold Discounted Cash Flow Analysis
Due to the single ownership of multiple houses (six houses) by the builder within Magnolia, a Discounted Cash Flow (“DCF”) analysis is needed in order to arrive at a bulk value for the homes within each neighborhood. Please refer to the description under the Trellis neighborhood DCF.

Builder Owned Retail Value – Marigold
Within the subject property, there are six builder-owned houses over 95 percent complete, four of which are model homes. Per interviews with builders, upgrades and landscape/hardscape of up to $100,000 are installed in the model homes, however, the builders generally consider this a marketing cost and do not anticipate recovering this investment on a dollar-for-dollar basis. Based on historical information, home sizes and fixtures, actual model home sales within the subject area and the current real estate market, a consideration of a $50,000 premium has been included with each of the model homes. As concluded above, the retail base value conclusions for the builder-owned homes within Marigold are calculated below:

Marigold Plan 1 (2 x $538,200) $ 1,076,400
Marigold Plan 2 (2 x $563,200) 1,126,400
Marigold Plan 3 (1 x $589,050) 589,050
Marigold Plan 4 (1 x $597,658) 597,658
Model Upgrades (4 x $50,000) 200,000
Total Marigold Retail Value $3,589,508
_________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 86
Absorption Period
In order to arrive at an absorption period for the six builder-owned homes, the absorption rate for Marigold along with the surrounding developments has been reviewed. Marigold had an absorption period of 0.8 sales per month. The market comparables have a range of

0.8 to 8.7 sales per month with Marigold at the low-end of the range. Taking into consideration the product, concluded sales prices and current escrows, along with the current interest rates, it has been concluded that the six builder-owned homes within Marigold will be absorbed within an eight-month time period at the concluded values.

Remaining Costs
As discussed under the remaining costs section earlier within this report, there is $14,521.74 per home/lot/pad in remaining land development costs and fees associated with the Marigold builder-owned homes, which equates to a total of $87,130 for the subject six homes. It is an assumption of this analysis that the remaining costs will be spread evenly over the eight-month absorption time period.

Expenses
In determining an expense rate, several builders in the subject area have been interviewed as to their expenses on selling existing inventory. Expenses include marketing and general administrative costs. These costs typically range from six to ten percent depending on varying factors such as absorption period, intensity of marketing, etc. Due to the current soft market, we are considering eight percent for marketing expenses and two percent for general and administrative costs for a total of ten percent in expenses for this analysis.

Profit
Several interviews with merchant builders in the area were conducted in order to determine an appropriate profit percentage for the subject property. In the early 2000s, developers typically attempted to achieve a 10 to 12 percent profit based on gross sales proceeds. During the early great recession, this range was lowered considerably to six to 10 percent with some builders drastically lowering their profit potential in order to maintain _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 87
their work force. A ten percent profit is considered appropriate in the analysis for this project.

Discount Rate
In selecting a discount rate, the following was completed:

1. Interviews with merchant builders in the San Bernardino area

2. Review of current market conditions including current market rates as well as yields reflected in other markets (i.e., municipal bonds, corporate bonds, etc.)

3. The quality, construction, historical sales and product on the subject property The homes within Marigold began selling in September 2025 with the product being slowly received in the marketplace with an 0.8 sales per month absorption. The market comparables have an absorption range from 0.8 to 8.7 sales per month, however the highest in the range of 8.7 sales per month is for a newly opened community in an in-fill neighborhood with minimal new homes surrounding it. The remaining data have sales per month ranging from 0.8 to 5.2. This compares to the overall Inland Empire average sales rate per community of 2.8 sales per month (year to date as of August 9, 2026). The subject is performing below the average of the overall market. Based on the sales rate within Marigold, the competition, the product and location, and current market conditions, a twelve percent discount rate is considered appropriate for this analysis.

Discounted Cash Flow Summary
The discounted revenue (see DCF Analyses in addenda) for the builder-owned homes within Marigold is $2,673,297.
.

Marigold Builder/Investor Ownership Totals
Risewell owns six homes over 95 percent complete (including four models) along with 22 finished pads. The concluded values are as follows:

Risewell Homes (21 pads “as is”) $ 4,630,044
Risewell Homes (6 Houses) 2,673,297
Subtotal Risewell Ownership Marigold $ 7,303,341

TPG AG Ownership (88 Pads – “as is”) $19,402,087
_________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 88
Marigold Individual Owners Value Conclusion
There are nine individually owned homes within Marigold. Based on the concluded value for each plan, the individually owned homes within the subject property have a minimum market value of:

Marigold Plan 1 (4 x $538,200) $ 2,152,800
Marigold Plan 2 (3 x $563,200) 1,689,600
Marigold Plan 3 (2 x $589,050) 1,178,100
Marigold Plan 4 (0 x $597,658) 0
Total Marigold Individual Value $5,020,500
In additional review, we have reviewed the original builder sales prices for the homes within Marigold. Closings for the nine homes occurred between December 18, 2025, and July 27, 2026. The reported closing prices by the builder for the nine individually owned homes total $5,645,884 which is 11.1 percent higher than the concluded value. The builder’s reported prices include premiums, upgrades and purchased options as well as taking into consideration all concessions given by the builder, including closing costs and mortgage buydowns. The above valuation is for the minimum market value, as it takes into consideration the base plan price only and does not take into account any options, premiums or upgrades which were purchased by the buyers; however, it does take all concessions into consideration. It is our conclusion that the original builder sales prices further substantiate the concluded minimum market value for the individually owned homes.

Iris
Iris by Richmond American includes four plans. The homes are built in a cluster/alley load detached format with attached garages. The plans are detailed in the chart below. *One of each of these plans is a model home. There are an additional 19 pads (not shown on the above table).

The Gardens Phase Two
Plan Bd/Ba
Floors/
Parking Sq. Ft.

Ind.

Owned
Bldr.

Owned
Iris by Richmond American
1 3 / 2.5 2 / 2 1,750 11 4*
2 3 / 2.5 2 / 2 1,830 4 6*
3 4 / 3 2 / 2 1,840 9 8*
4 4 / 3 2 / 2 1,950 26 1*
Subtotal Iris 50 19
_________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 89
The most appropriate new home comparable data for Iris Plan 1 are shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 1 3 / 2.5 2 / 2 1,750 --
1 3 4 / 3 2 / 2 1,667 $338.93
2 2 3 / 2.5 2 / 2 1,760 $335.23
3 2 3 / 2.5 2 / 2 1,830 $328.42
3 3 4 / 3.5 2 / 2 1,840 $329.34
6 1 3 / 2.5 2 / 2 1,669 $335.52
6 2 3 / 2.5 2 / 2 1,877 $309.53
7 1 3 / 2.5 2 / 2 1,791 $314.14
The comparable communities are all located in Fontana. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, school districts, lot size, master plan amenities, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $309.53 to $338.43 per square foot. Iris Plan 1 has a current base asking price of $333.71 per square foot. It should be noted that the base prices do not take into consideration the mortgage concessions (either rate buydowns or closing cost assistance). There have been 11 closings of Iris Plan 1 with net sales prices ranging from $309.14 to $360.04 per square foot. There are no current escrows of Iris Plan 1. It should be noted that the reported net sales prices include upgrades, premiums, and options along with all concessions given by the builder, while the concluded value relates to a base price for the plan including closing cost concessions. Closing cost concessions do not show up in the reported sales price of the home, however, are a cost of selling the home and are included in this analysis. The financing concessions for Iris Plan 1 ranged from zero to $50,998. It has been concluded that Iris Plan 1 has a base current market value of $325.00 per square foot. This calculates as follows:
1,750 sf x $325.00 = $568,750
The most appropriate new home comparable data for Iris Plan 2 are shown below.

Financing concessions ranged from zero to $63,956 on the closed sales of Plan 4. Financing concessions do not show up in the reported sales price of the home, however, are a cost of selling the home and are included in this analysis. It has been concluded that Iris Plan 4 has a net base current market value of $310.00 per square foot. This calculates as follows:
1,950 sf x $310.00 = $604,500

Builder Owned Retail Value – Iris
Within Iris, there are 19 builder-owned houses over 95 percent complete, four of which are model homes. Per interviews with builders, upgrades and landscape/hardscape of up to $100,000 are installed in the model homes, however, the builders generally consider this a marketing cost and do not anticipate recovering this investment on a dollar-fordollar basis. Based on historical information, home sizes and fixtures, actual model home sales within the subject area and the current real estate market, a consideration of a $50,000 premium has been included with each of the model homes. As concluded above, the retail base value conclusions for the builder-owned homes within Iris are calculated below:

Iris Plan 1 (4 x $568,750) $ 2,275,000
Iris Plan 2 (6 x $576,450) 3,458,700
Iris Plan 3 (8 x $588,800) 4,710,400
Iris Plan 4 (1 x $604,500) 604,500
Model Upgrades (4 x $50,000) 200,000
Total Iris Retail Value $11,248,600
Absorption Period
In order to arrive at an absorption period for the 19 builder-owned homes, the absorption rate for Iris along with the surrounding developments has been reviewed. Iris opened for sale January 11, 2025, and has sold 51 houses to date suggesting an average absorption rate of 2.7 sales per month. The market comparables have a range of 0.8 to 8.7 sales per month with Iris in mid-range. Taking into consideration the product, concluded sales prices and current escrows, along with the current interest rates, it has been concluded that the 19 builder-owned homes within Iris will be absorbed within an eight-month time period at the concluded values.
_________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 94
Remaining Costs
As discussed under the remaining costs section earlier within this report, there is $6,113.47 per home/lot/pad in remaining land development costs and fees associated with the Iris builder-owned homes, which equates to a total of $116,156 for the subject 19 homes. It is an assumption of this analysis that the remaining costs will be spread evenly over the eight-month absorption time period.

Discount Rate
In selecting a discount rate, the following was completed:

1. Interviews with merchant builders in the San Bernardino area

2. Review of current market conditions including current market rates as well as yields reflected in other markets (i.e., municipal bonds, corporate bonds, etc.)

3. The quality, construction, historical sales and product on the subject property The homes within Iris began selling in January 2025 with the product having an average absorption rate of 2.7 sales per month which is typical for the current market. The market _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 95
comparables have an absorption range from 0.8 to 8.7 sales per month, however the highest in the range of 8.7 sales per month is for a newly opened community in an in-fill neighborhood with minimal new homes surrounding it. The remaining data have sales per month ranging from 0.8 to 5.2. This compares to the overall Inland Empire average sales rate per community of 2.8 sales per month (year to date as of August 9, 2026). The subject is performing around the average of the overall market. Based on the sales rate within Iris, the competition, the product and location, and current market conditions, a ten percent discount rate is considered appropriate for this analysis.

Discounted Cash Flow Summary
The discounted revenue (see DCF Analyses in addenda) for the builder-owned homes within Iris is $8,572,254.
.

Iris Builder Ownership Totals
Richmond American owns 19 homes over 95 percent complete (including four models) along with 19 finished pads. The concluded values are as follows:

Richmond American (19 pads “as is”) $ 5,298,844
Richmond American (19 Houses) 8,572,254
Subtotal Richmond Ownership Iris $13,871,098

Iris Individual Owners Value Conclusion
There are fifty individually owned homes within Iris. Based on the concluded value for each plan, the individually owned homes within the subject property have a minimum market value of:

Iris Plan 1 (11 x $568,750) $ 6,256,250
Iris Plan 2 (4 x $576,450) 2,305,800
Iris Plan 3 (9 x $588,800) 5,299,200
Iris Plan 4 (26 x $604,500) $15,717,000
Total Iris Individual Value $29,578,250
In additional review, we have reviewed the original builder sales prices for the homes within Iris. Closings for the 50 homes occurred between April 25, 2025, and July 30, 2026.

The reported net closing prices by the builder for the 50 individually owned homes total $30,966,759 which is 4.4 percent higher than the concluded value. The builder’s reported _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 96
prices include premiums, upgrades and purchased options as well as taking into consideration all concessions given by the builder, including closing costs and mortgage buydowns. The above valuation is for the minimum market value, as it takes into consideration the base plan price only and does not take into account any options, premiums or upgrades which were purchased by the buyers; however, it does take all concessions into consideration. It is our conclusion that the original builder sales prices further substantiate the concluded minimum market value for the individually owned homes.

Flora
Flora by Richmond American includes four plans. The homes are built in a cluster/alley load detached format with attached garages. The plans are detailed in the chart below. *One of each of these plans is a model home. There are an additional 19 pads (not shown on the above table).

The most appropriate new home comparable data for Flora Plan 1 are shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 1 3 / 3 2 / 2 1,850 --
2 2 3 / 2.5 2 / 2 1,760 $335.23
2 3 4 / 2.5 2 / 2 1,870 $339.57
3 2 3 / 2.5 2 / 2 1,830 $328.42
3 3 4 / 3.5 2 / 2 1,840 $329.34
4 2 4 / 3.5 2 / 2 1,920 $346.35
6 2 3 / 2.5 2 / 2 1,877 $309.53
7 1 3 / 2.5 2 / 2 1,791 $314.14
7 2 3 / 2.5 2 / 2 2,056 $288.91
The comparable communities are all located in Fontana. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, school districts, lot size, master plan amenities, stories, sales concessions, CFD taxes, common area The Gardens Phase Two
Plan Bd/Ba
Floors/
Parking Sq. Ft.

Ind.

Owned
Bldr.

Owned
Flora by Richmond American
1 4 / 3 2 / 2 1,850 7 5*
2 4 / 3.5 2 / 2 1,920 16 3*
3 4 / 3.5 2 / 2 2,070 14 8*
4 4 / 3.5 2 / 2 2,120 12 2*
Subtotal Flora 49 18
_________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 97
benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $288.91 to $346.35 per square foot. Flora Plan 1 has a current base asking price of $339.46 per square foot. It should be noted that the base prices do not take into consideration the mortgage concessions (either rate buydowns or closing cost assistance). There have been seven closings of Flora Plan 1 with net sales prices ranging from $327.75 to $357.08 per square foot. There is one current escrow of Flora Plan 1 with a reported net sales price of $354.58, however this may not include all of the concessions. It should be noted that the reported net sales prices include upgrades, premiums, and options along with all concessions given by the builder, while the concluded value relates to a base price for the plan including closing cost concessions. Closing cost concessions do not show up in the reported sales price of the home, however, are a cost of selling the home and are included in this analysis. It has been concluded that Flora Plan 1 has a base current market value of $325.00 per square foot. This calculates as follows:
1,850 sf x $325.00 = $601,250
The most appropriate new home comparable data for Flora Plan 2 are shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 2 4 / 3.5 2 / 2 1,920 --
2 3 4 / 2.5 2 / 2 1,870 $339.57
2 4 4 / 3 2 / 2 1,979 $336.03
3 3 4 / 3.5 2 / 2 1,840 $329.34
3 4 4 / 2.5 2 / 2 1,950 $316.92
4 1 3 / 3 2 / 2 1,850 $339.46
4 3 4 / 3.5 2 / 2 2,070 $313.53
5 2 4 / 3 2 / 2 2,136 $343.63
6 3 4 / 2.5 2 / 2 2,000 $297.50
7 2 3 / 2.5 2 / 2 2,056 $288.91
The comparable communities are all located in Fontana. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, school districts, lot size, master plan amenities, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $288.91 to $343.63 per square foot. Flora Plan 2 has a current base asking price of $346.35 per square foot. It should be noted that _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 98
the base prices do not take into consideration the mortgage concessions (either rate buydowns or closing cost assistance). There have been 15 closings of Flora Plan 2 with net sales prices ranging from $316.35 to $362.28 per square foot. There are no current escrows of Flora Plan 2. It should be noted that the reported net sales prices include upgrades, premiums, and options along with all concessions given by the builder, while the concluded value relates to a base price for the plan including closing cost concessions. Closing cost concessions do not show up in the reported sales price of the home, however, are a cost of selling the home and are included in this analysis. It has been concluded that Flora Plan 2 has a base current market value of $320.00 per square foot. This calculates as follows:
1,920 sf x $320.00 = $614,400
The most appropriate new home comparable data for Flora Plan 3 are shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 3 4 / 3.5 2 / 2 2,070 --
2 4 4 / 3 2 / 2 1,979 $336.03
3 4 4 / 2.5 2 / 2 1,950 $316.92
4 2 4 / 3.5 2 / 2 1,920 $346.35
4 4 4 / 3.5 2 / 2 2,120 $316.03
5 2 4 / 3 2 / 2 2,136 $343.63
6 3 4 / 2.5 2 / 2 2,000 $297.50
7 2 3 / 2.5 2 / 2 2,056 $288.91
The comparable communities are all located in Fontana. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, school districts, lot size, master plan amenities, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $288.91 to $346.35 per square foot. Flora Plan 3 has a current base asking price of $313.53 per square foot. It should be noted that the base prices do not take into consideration the mortgage concessions (either rate buydowns or closing cost assistance). There have been 14 closings of Flora Plan 3 with net sales prices ranging from $300.11 to $352.45 per square foot. There are no current escrows of Flora Plan 3. It should be noted that the reported net sales prices include upgrades, premiums, and options along with all concessions given by the builder, while the concluded value relates to a base price for the plan including closing cost concessions. Closing cost _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 99
concessions do not show up in the reported sales price of the home, however, are a cost of selling the home and are included in this analysis. It has been concluded that Flora Plan 3 has a net base current market value of $305.00 per square foot. This calculates as follows:
2,070 sf x $305.00 = $631,350
The most appropriate new home comparable data for Flora Plan 4 are shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 4 4 / 3.5 2 / 2 2,120 --
2 4 4 / 3 2 / 2 1,979 $336.03
3 4 4 / 2.5 2 / 2 1,950 $316.92
4 3 4 / 3.5 2 / 2 2,070 $313.53
5 2 4 / 3 2 / 2 2,136 $343.63
5 3 4 / 3 2 / 2 2,311 $334.92
6 3 4 / 2.5 2 / 2 2,000 $297.50
7 2 3 / 2.5 2 / 2 2,056 $288.91
The comparable communities are all located in Fontana. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, school districts, lot size, master plan amenities, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $288.91 to $343.63 per square foot. Flora Plan 4 has a current base asking price of $316.03 per square foot. It should be noted that the base prices do not take into consideration the mortgage concessions (either rate buydowns or closing cost assistance). There have been 13 closings of Flora Plan 4 with net sales prices ranging from $301.95 to $345.76 per square foot. There are no current escrows of Flora Plan 4. It should be noted that the reported sales prices include upgrades, premiums, and options along with all concessions given by the builder, while the concluded value relates to a base price for the plan including closing cost concessions. Closing cost concessions do not show up in the reported sales price of the home, however, are a cost of selling the home and are included in this analysis. It has been concluded that Flora Plan 4 has a net base current market value of $308.00 per square foot. This calculates as follows:
2,120 sf x $308.00 = $652,960

Builder Owned Retail Value – Flora
Within Flora, there are 18 builder-owned houses over 95 percent complete, four of which are model homes. Per interviews with builders, upgrades and landscape/hardscape of up to $100,000 are installed in the model homes, however, the builders generally consider this a marketing cost and do not anticipate recovering this investment on a dollar-fordollar basis. Based on historical information, home sizes and fixtures, actual model home sales within the subject area and the current real estate market, a consideration of a $50,000 premium has been included with each of the model homes. As concluded above, the retail base value conclusions for the builder-owned homes within Flora are calculated below:

Flora Plan 1 (5 x $601,250) $ 3,006,250
Flora Plan 2 (3 x $614,400) 1,843,200
Flora Plan 3 (8 x $631,350) 5,050,800
Flora Plan 4 (2 x $652,960) 1,305,920
Model Upgrades (4 x $50,000) 200,000
Total Flora Retail Value $11,406,170
Absorption Period
In order to arrive at an absorption period for the 18 builder-owned homes, the absorption rate for Flora along with the surrounding developments has been reviewed. Flora opened for sale March 22, 2025, and has sold 50 houses to date suggesting an average absorption rate of 2.9 sales per month. The market comparables have a range of 0.8 to 8.7 sales per month with Flora in mid-range. Taking into consideration the product, concluded sales prices and current escrows, along with the current interest rates, it has been concluded that the 18 builder-owned homes within Flora will be absorbed within an eight-month time period at the concluded values.
_________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 101
Remaining Costs
As discussed under the remaining costs section earlier within this report, there is $9,711.92 per home/lot/pad in remaining land development costs and fees associated with the Flora builder-owned homes, which equates to a total of $174,815 for the subject 18 homes. It is an assumption of this analysis that the remaining costs will be spread evenly over the eight-month absorption time period.

Discount Rate
In selecting a discount rate, the following was completed:

1. Interviews with merchant builders in the San Bernardino area

2. Review of current market conditions including current market rates as well as yields reflected in other markets (i.e., municipal bonds, corporate bonds, etc.)

3. The quality, construction, historical sales and product on the subject property The homes within Flora began selling in March 2025 with the product having an average absorption rate of 2.9 sales per month which is typical for the current market. The market _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 102
comparables have an absorption range from 0.8 to 8.7 sales per month, however the highest in the range of 8.7 sales per month is for a newly opened community in an in-fill neighborhood with minimal new homes surrounding it. The remaining data have sales per month ranging from 0.8 to 5.2. This compares to the overall Inland Empire average sales rate per community of 2.8 sales per month (year to date as of August 9, 2026). The subject is performing around the average of the overall market. Based on the sales rate within Flora, the competition, the product and location, and current market conditions, a ten percent discount rate is considered appropriate for this analysis.

Discounted Cash Flow Summary
The discounted revenue (see DCF Analyses in addenda) for the builder-owned homes within Flora is $8,644,052.

Flora Builder Ownership Totals
Richmond American owns 18 homes over 95 percent complete (including four models) along with 19 finished pads. The concluded values are as follows:

Richmond American (19 pads “as is”) $ 5,230,474
Richmond American (18 Houses) 8,644,052
Subtotal Richmond Ownership Flora $13,874,526

Flora Individual Owners Value Conclusion
There are 49 individually owned homes within Flora. Based on the concluded value for each plan, the individually owned homes within the subject property have a minimum market value of:

Flora Plan 1 (7 x $601,250) $ 4,208,750
Flora Plan 2 (16 x $614,400) 9,830,400
Flora Plan 3 (14 x $631,350) 8,838,900
Flora Plan 4 (12 x $652,960) 7,835,520
Total Individual Value Flora $30,713,570
In additional review, we have reviewed the original builder sales prices for the homes within Flora. Closings for the 49 homes occurred between May 29, 2025, and July 31, 2026. The reported net closing prices by the builder for the 49 individually owned homes total $32,606,296 which is 5.8 percent higher than the concluded value. The builder’s _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 103
reported prices include premiums, upgrades and purchased options as well as taking into consideration all concessions given by the builder, including closing costs and mortgage buydowns. The above valuation is for the minimum market value, as it takes into consideration the base plan price only and does not take into account any options, premiums or upgrades which were purchased by the buyers; however, it does take all concessions into consideration. It is our conclusion that the original builder sales prices further substantiate the concluded minimum market value for the individually owned homes.

APPRAISAL REPORT SUMMARY
The appraisal assignment was to value the subject property within Fontana CFD No. 113 which consists of 388 proposed residential units being built out by two builders in four neighborhoods. The 388 units are known as The Gardens Phase Two and are located in the northern portion of the City of Fontana. Risewell Homes is building and marketing 214 of the units as Trellis and Marigold. Trellis consists of 90 proposed triplex homes including a carriage house up over garages and two detached units in each configuration, while Marigold includes 124 proposed detached homes on alley load condominium lots.

Richmond American is building and marketing 174 of the units as Iris and Flora. Iris consists of 88 proposed single family detached homes on small lots while Flora consists of 86 proposed single family detached homes on small lots. As of August 7, 2026, individuals have purchased and closed 120 of the 388 proposed homes, with an additional five homes in escrow which are due to close in the near future. All structures appear to be in excellent condition with no visible depreciation. We have reviewed builder sales and reviewed the local MLS for current listings or resales and found one current resale listing.

The subject property was valued using the Sales Comparison Approach to value, a Discounted Cash Flow Analysis, and a Mass Appraisal Technique for the individually owned homes. A minimum value was determined by concluding at a base value for the individually owned homes. The valuation took into account the improvements/benefits to be funded by the special tax Fontana CFD No. 113 bond proceeds along with the Fontana CFD No. 113 special tax lien. The concluded aggregate value for the subject property, subject to their respective special tax lien, is:

The Gardens Phase Two:

Risewell Homes (35 lots/pads & 16 houses) $ 14,326,560
TPG AG (142 lots/pads) $ 31,302,856
Richmond American (38 lots/pads & 37 houses) $ 27,745,624 Individual Owners (120 houses) $ 71,503,520
Total Aggregate Value CFD No. 113 $144,878,560
The above values are stated as of said date of value and subject to the attached Assumptions and Limiting Conditions and Appraiser’s Certification. _________________________________________________________________________________________________________ Appraisal Report
City of Fontana CFD No. 113 (The Gardens Phase Two) – Risewell Homes and Richmond American Kitty Siino & Associates, Inc. Page 105
APPRAISER’S CERTIFICATION
The appraiser certifies that to the best of his knowledge and belief:

1. The statements of fact contained in this report are true and correct.

2. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased, professional analyses, opinions and conclusions.

3. The appraiser has no present or prospective interest in the property that is the subject of this report, and no personal interest or bias with respect to the parties involved.

4. The appraiser’s compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result or the occurrence of a subsequent event.

5. This appraisal was not based on a requested minimum valuation, a specific valuation or the approval of a loan.

6. The analyses, opinions and conclusions were developed, and this report was prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.

7. Kitty Siino has made a personal inspection of the property that is the subject of this report.

8. Kitty Siino has not performed any appraisal services on the subject property in the past three years.

9. No other appraisers have provided significant professional assistance to the persons signing this report.

10. The reported analyses, opinions and conclusions were developed, and this report was prepared, in conformity with the requirements of the Appraisal Institute’s Code of Professional Ethics and Standards of Professional Appraisal Practice, which include the Uniform Standards of Professional Appraisal Practice.

11. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

12. As of the date of this report, Kitty Siino has completed the requirements of the continuing education program of the Appraisal Institute.

Kitty S. Siino, MAI
State Certified General
Real Estate Appraiser (AG004793)

ADDENDA

FONTANA CFD NO. 113

BOUNDARY MAP

TRACT MAP No. 20362

AND PHASE MAPS
Blue Star-Marigold (Lot 1), Green Star-Trellis (Lot 2) by Risewell Homes Orange Star-Iris (Lot 3), Yellow Star-Flora (Lot 4) by Richmond American

California Fire Hazard Map
California Fire Hazard Map – Approximate Location of The Gardens Phase Two is Blue Star

DISCOUNTED CASH FLOW ANALYSES

MONTH Months MONTH 1 MONTH 2 MONTH 3 MONTH 4 MONTH 5 MONTH 6 MONTH 7 MONTH 8 MONTH 9 MONTH 10 TOTAL 10 INCOME:

Retail Sales 5,326,840 $532,684 $532,684 $532,684 $532,684 $532,684 $532,684 $532,684 $532,684 $532,684 $532,684 $5,326,840 TOTAL INCOME $532,684 $532,684 $532,684 $532,684 $532,684 $532,684 $532,684 $532,684 $532,684 $532,684 $5,326,840 EXPENSES:

Remaining Costs ($14,615) ($14,616) ($14,615) ($14,616) ($14,615) ($14,616) ($14,615) ($14,615) ($14,615) ($14,616) ($146,154) Marketing & Carrying Expenses 10% ($53,268) ($53,268) ($53,268) ($53,268) ($53,268) ($53,268) ($53,268) ($53,268) ($53,268) ($53,268) ($532,684) Profit 10% ($53,268) ($53,268) ($53,268) ($53,268) ($53,268) ($53,268) ($53,268) ($53,268) ($53,268) ($53,268) ($532,684) TOTAL EXPENSES ($121,152) ($121,153) ($121,152) ($121,153) ($121,152) ($121,153) ($121,152) ($106,537) ($106,537) ($106,537) ($1,167,676) NET CASH FLOW $411,532 $411,531 $411,532 $411,531 $411,532 $411,531 $411,532 $426,147 $426,147 $426,147 $4,159,164 Discount Factor 12% 0.9901 0.9803 0.9706 0.9610 0.9515 0.9420 0.9327 0.9235 0.9143 0.9053 DISCOUNTED CASH FLOW $407,458 $403,422 $399,429 $395,473 $391,559 $387,681 $383,844 $393,540 $389,643 $385,786 $3,937,834 CUMULATIVE DISCOUNTED $407,458 $810,880 $1,210,309 $1,605,783 $1,997,341 $2,385,022 $2,768,866 $3,162,406 $3,552,049 $3,937,834 $3,937,834

CASH FLOW
Fontana CFD 113 - Trellis Discounted Cash Flow Analysis Risewell Owned Units

MONTH Months MONTH 1 MONTH 2 MONTH 3 MONTH 4 MONTH 5 MONTH 6 MONTH 7 MONTH 8 TOTAL 8 INCOME:

Retail Sales 11,248,600 $1,406,075 $1,406,075 $1,406,075 $1,406,075 $1,406,075 $1,406,075 $1,406,075 $1,406,075 $11,248,600 TOTAL INCOME $1,406,075 $1,406,075 $1,406,075 $1,406,075 $1,406,075 $1,406,075 $1,406,075 $1,406,075 $11,248,600 EXPENSES:

Remaining Costs ($14,519) ($14,520) ($14,519) ($14,520) ($14,519) ($14,520) ($14,519) ($14,520) ($116,156) Marketing & Carrying Expenses 10% ($140,608) ($140,608) ($140,608) ($140,608) ($140,608) ($140,608) ($140,608) ($140,608) ($1,124,860) Profit 10% ($140,608) ($140,608) ($140,608) ($140,608) ($140,608) ($140,608) ($140,608) ($140,608) ($1,124,860) TOTAL EXPENSES ($295,734) ($295,735) ($295,734) ($295,735) ($295,734) ($295,735) ($295,734) ($281,215) ($2,351,356) NET CASH FLOW $1,110,341 $1,110,340 $1,110,341 $1,110,340 $1,110,341 $1,110,340 $1,110,341 $1,124,860 $8,897,244 Discount Factor 10% 0.9917 0.9835 0.9754 0.9673 0.9594 0.9514 0.9436 0.9358 DISCOUNTED CASH FLOW $1,101,165 $1,092,063 $1,083,039 $1,074,087 $1,065,211 $1,056,407 $1,047,677 $1,052,605 $8,572,254 CUMULATIVE DISCOUNTED $1,101,165 $2,193,228 $3,276,267 $4,350,354 $5,415,565 $6,471,972 $7,519,649 $8,572,254 $8,572,254

CASH FLOW
Fontana CFD 113 - Iris Discounted Cash Flow Analysis Richmond American Owned Units MONTH Months MONTH 1 MONTH 2 MONTH 3 MONTH 4 MONTH 5 MONTH 6 MONTH 7 MONTH 8 TOTAL 8 INCOME:

Retail Sales 11,406,170 $1,425,771 $1,425,771 $1,425,771 $1,425,771 $1,425,771 $1,425,771 $1,425,771 $1,425,771 $11,406,170 TOTAL INCOME $1,425,771 $1,425,771 $1,425,771 $1,425,771 $1,425,771 $1,425,771 $1,425,771 $1,425,771 $11,406,170 EXPENSES:

Remaining Costs ($21,852) ($21,852) ($21,852) ($21,852) ($21,852) ($21,852) ($21,852) ($21,851) ($174,815) Marketing & Carrying Expenses 10% ($142,577) ($142,577) ($142,577) ($142,577) ($142,577) ($142,577) ($142,577) ($142,577) ($1,140,617) Profit 10% ($142,577) ($142,577) ($142,577) ($142,577) ($142,577) ($142,577) ($142,577) ($142,577) ($1,140,617) TOTAL EXPENSES ($307,006) ($307,006) ($307,006) ($307,006) ($307,006) ($307,006) ($307,006) ($285,154) ($2,434,198) NET CASH FLOW $1,118,765 $1,118,765 $1,118,765 $1,118,765 $1,118,765 $1,118,765 $1,118,765 $1,140,617 $8,971,972 Discount Factor 10% 0.9917 0.9835 0.9754 0.9673 0.9594 0.9514 0.9436 0.9358 DISCOUNTED CASH FLOW $1,109,519 $1,100,349 $1,091,256 $1,082,237 $1,073,293 $1,064,423 $1,055,626 $1,067,350 $8,644,052 CUMULATIVE DISCOUNTED $1,109,519 $2,209,868 $3,301,124 $4,383,361 $5,456,654 $6,521,077 $7,576,702 $8,644,052 $8,644,052

CASH FLOW
Fontana CFD 113 - Flora Discounted Cash Flow Analysis Richmond American Owned Units

FINISHED LOT LAND SALES MAP
& SUMMARY CHART

FINISHED LOT LAND SALES MAP

FINISHED LOT LAND SALES SUMMARY CHART
Data
No. Location / APN / Buyer / Seller Sales # Lots Lot Size Sales Price / Est. Finished Comments Date Price per Lot Lot Price Subject
Marigold and Trellis (Gardens) at
Arboretum / SEC Duncan
Canyon Road and Cypress
Avenue, Fontana / 1118-401-15 /
Risewell Homes / Lewis Group of
Companies
October 2024 214 13 du/acre
blended
$35,814,500 /
$167,357 N/A
Closed with an approved
TTM with a Final Map in
Process in a sheet graded
condition.

Subject
Flora and Iris (Gardens) at
Arboretum / NEC and SEC of
Gardens Street and Cypress
Avenue, Fontana / 1118-421-22 /
Richmond American Homes /
Lewis Group of Companies
January 2024 174 9 du / acre
blended
$28,789,500 /
$165,457 N/A
Closed with an approved
TTM with a Final Map in
Process in a sheet graded
condition.
1 6668 Knox Avenue / NW of
Walnut Avenue and Almeria
Street, Fontana / 0228-061-25
various / Lennar / Diversified
Pacific
June 2026 393 13 du/acre
blended
$43,161,500 /
$109,826 $231,000
Closed with an approved
TTM with a Final Map in
Process in an unimproved
condition. Three Product
lines – Townhomes and
two cluster products.
2 The Resort PA 5 and 7 / NE of
Merrill Avenue and Bellegrave
Avenue, Ontario / Partial 1073-
171-04, -08, -09 / Richmond
American Homes / Lewis Group
of Companies
January 2026 100
17 du/ac (2/3
Story
Motocourt)
$25,501,000 /
$255,010 $350,000
Closed with a Final Map
Approved in a Finished Lot
condition.
3 Ventana at Duncan Canyon /
SWC of Duncan Canyon Road
and Citrus Avenue, Fontana /
1107-262-64 / KB Home /
Frontier Communities
January 2026 217
17 du/acre
blended
Attached
$23,250,000 /
$107,143 $209,000
Closed with an approved
TTM with a Final Map in
Process in an unimproved
condition. Two Product
Line – 2 Story Towns and
3 Story Towns
4 8312 Grapewin Street / SEC of
Wind River Road and Archibald
Street, Eastvale / 130-070-021 /
Richmond American Homes /
Warmington Residential
November 2025 76 9 du/ac (Smalllot Detached)
$5,900,000 /
$77,632 $380,000
Closed with an approved
Final Map in process in an
unimproved condition.
5 The Resort PA 4 / NE of Merrill
Avenue and Bellegrave Avenue,
Ontario / Partial 1073-171-04, -
08, -09 / Tri Pointe Homes /
Lewis Group of Companies
October 2025 58
22 du/ac (3-
Story Towns)
Attached
$8,541,500 /
$147,267 $205,000
First of two takedowns.

Total lot count is 116 lots.

Closed with a Final Map
Approved in a Finished Lot
condition.
6 The Resort PA 6 / NE of Merrill
Avenue and Bellegrave Avenue,
Ontario / Partial 1073-171-04, -
08, -09 / Richmond American
Homes / Lewis Group of
Companies
October 2025 115
16 du/ac (3-
Story Detached
Condos)
$23,388,000 /
$203,374 $315,000
Closed with a Final Map
Approved in a Finished Lot
condition.
7 Ontario 351, SWC Eucalyptus
Ave and Haven Ave, Ontario /
1073-171-02 / KB Home /
Richland Communities
June 2024 351 8 du/acre $85,000,000 /
$242,165 $380,000
Closed in unimproved
condition with approved
TTM. Blended FLV - KB
Home paid approximately
$560,000 FLV for 4,500
sf lots, $410,000 FLV for
cluster product, and
$280,000 FLV for
townhomes.
8 The Heights at Southridge, SE
Live Oak Ave and Cherry Ave,
Fontana / 0237-411-13 / KB
Home / New Bridge Homes
April 2024 255 8 du/acre $31,100,000 /
$121,961 $252,000
Closed in unimproved
condition with approved
TTM. Blended FLV -
consists of two product
types, including a
detached 8-pack cluster
and detached alley-load.

IMPROVED RESIDENTIAL

SALES MAP & SUMMARY CHART

IMPROVED RESIDENTIAL SALES MAP

IMPROVED RESIDENTIAL SALES SUMMARY CHART
Data
No.

Project Name
Location/Developer Plan Room Count
Floors/
Parking
Size
(SF)
Lot Size /
Absorption
Base
Sales
Price
Price/SF
1 Trellis at Arboretum, Gardens Street and
Cypress Avenue, Fontana / Risewell
Homes
1 3 / 2 1 / 2 1,530 Det. Cluster Plus $506,000 $330.72
2 4 / 3 2 / 2 1,567 Att. Carriage (1,530sf) $541,000 $345.25 3 4 / 3 2 / 2 1,667 1.4 sales/mo $565,000 $338.93
2 Marigold at Arboretum, Gardens Street
and Cypress Avenue, Fontana / Risewell
Homes
1 3 / 2.5 2 / 2 1,656 $567,000 $342.39
2 3 / 2.5 2 / 2 1,760 SFD Small Lots $590,000 $335.23
3 4 / 2.5 2 / 2 1,870 0.8 sales/mo $635,000 $339.57
4 4 / 3 2 / 2 1,979 $665,000 $336.03
3 Iris at Arboretum, Gardens Street and
Cypress Avenue, Fontana / Richmond
American
1 3 / 2.5 2 / 2 1,750 $584,000 $333.71
2 3 / 2.5 2 / 2 1,830 Det. Cluster $601,000 $328.42
3 4 / 3.5 2 / 2 1,840 2.7 sales/mo $605,990 $329.34
4 4 / 2.5 2 / 2 1,950 $617,990 $316.92
4 Flora at Arboretum, Gardens Street and
Cypress Avenue, Fontana / Richmond
American
1 3 / 3 2 / 2 1,850 $628,000 $339.46
2 4 / 3.5 2 / 2 1,920 Det. Cluster $665,000 $346.35
3 4 / 3.5 2 / 2 2,070 2.9 sales/mo $649,000 $313.53
4 4 / 3.5 2 / 2 2,120 $669,990 $316.03
5 Strata at Narra Hills, Lytle Creek Road
and Duncan Canyon Road, Fontana /
Landsea
1 3 / 2.5 2 / 2 2,099 2,700 sf lots $730,990 $348.26
2 4 / 3 2 / 2 2,136 (Det. Cluster) $733,990 $343.63
3 4 / 3 2 / 2 2,311 2.7 sales/mo $773,990 $334.92
4 4 / 3 2 / 2 2,552 $789,990 $309.56
6 Arbor at Parkview / Live Oak Avenue,
South of Village Drive, Fontana / KB
Home
1 3 / 2.5 2 / 2 1,669 Small Lot SFD $559,990 $335.52
2 3 / 2.5 2 / 2 1,877 8.7 sales/mo $580,990 $309.53
3 4 / 2.5 2 / 2 2,000 $594,990 $297.50
7 Canopy at Parkview / Live Oak Ave.,
South of Village Dr., Fontana / KB Home
1 3 / 2.5 2 / 2 1,791 Det. Cluster $562,990 $314.34
2 3 / 2.5 2 / 2 2,056 3.7 sales/mo $593,990 $288.91
3 5 / 3 2 / 2 2,320 $639,990 $275.86
8 Citrus Lane / Citrus Ave and Highland
Ave, Fontana / D.R. Horton
1 3 / 2.5 2 / 2 1,500 Row Townhomes $514,118 $342.75
2 4 / 2.5 2 / 2 1,602 3.3 sales/mo $563,786 $351.93

9 Aviator at Renaissance / N Ayala Drive,
south of Renaissance Parkway, Rialto /
Lennar
1 3 / 2.5 2 / 2 1,908 Det. Cluster $604,990 $317.08
2 4 / 3 2 / 2 2,152 4.0 sales/mo $627,155 $291.43
3 4 / 3 2 / 2 2,388 $630,990 $264.23
10 Outbound at Renaissance / N Ayala
Drive, south of Renaissance Parkway,
Rialto / Lennar
1 3 / 2.5 2 / 2 1,665 $539,590 $324.08
2 3 / 2.5 2 / 2 1,796 2,500 sf lots $554,890 $308.96
3 4 / 2.5 2 / 2 1,849 4.7 sales/mo $595,290 $321.95
4 4 / 3 2 / 2 1,960 $580,590 $296.22
11 Runway at Renaissance / N Ayala Drive,
south of Renaissance Parkway, Rialto /
Lennar
1 3 / 2.5 2 / 2 1,711 $542,628 $317.14
2 4 / 3 2 / 2 1,816 Det. Cluster $561,990 $309.47
3 4 / 3 2 / 2 1,924 5.2 sales/mo $578,490 $300.67
4 4 / 3 2 / 2 1,937 $579,889 $299.37
12 Tailwind at Renaissance / N Ayala Drive,
south of Renaissance Parkway, Rialto /
Lennar
1 3 / 2.5 2 / 2 1,478 Det. Cluster $513,990 $347.76
2 3 / 2.5 2 / 2 1,639 4.6 sales/mo $540,476 $329.76
3 4 / 3 2 / 2 1,790 $561,511 $313.69
APPRAISER’S QUALIFICATIONS
QUALIFICATIONS OF KITTY S. SIINO, MAI
Education
Bachelor of Arts in Business Administration, Financial Investments, California State University, Long Beach, California (1980)
Post-Graduate Study, Real Estate Development, University of California, Irvine, California Appraisal Institute Classes: Uniform Standards of Professional Appraisal Practice, A & B; Appraisal Principles; Appraisal Procedures; Basic Income Capitalization; Advanced Income Capitalization; Narrative Report Writing; Advanced Applications, Case Studies.

Successfully completed all classes in addition to successfully completing the writing of a Demonstration Report and taking the Comprehensive Exam. Became a Member of the Appraisal Institute in December 1996. Have completed over 100 hours of continuing education through the Appraisal Institute every five years.

Employment
1988 - Present:

Self-Employed Real Estate Appraiser. Duties include the appraisal of various types of properties such as commercial, retail, industrial and vacant land. More complex assignments include easements, right-of-ways and special assessment districts. From 1996 to present, specialized in special assessment districts and community facilities districts appraisals for public entities, including Jurupa Community Services District, Corona Norco Unified School District, City of Corona, City of Chula Vista, City of San Marcos and City of Moreno Valley.
1986-1988:

Project Manager of Development for Ferguson Partners, Irvine, California. Duties included land acquisitions; review of fee appraisals and valuations; analysis of proposed development; planning and design; and management of development, construction and lease-up. The types of properties developed were commercial and industrial. Duties ranged from raw, vacant site development through property management of recently developed projects.
1981 - 1986
Manager of Finance, Construction for Community Development Division, The Irvine Company, Irvine, California. Duties included originating and managing a newly formed division of finance to bridge between the accounting functions and project management functions. Worked with analysis and budgets for Community Development Division. Coordinated with cities in forming new Assessment Districts and Community Facilities Districts to finance major infrastructure improvements.

Types of properties were apartments and single-family residential lots on a for sale basis to apartment and homebuilders.
1980 - 1981
Investment Counselor, Newport Equity Funds, Newport Beach, California. Duties included obtaining private financing for residential properties, working with appraisals of properties and analyzing the investments.

Licenses
Real Estate Sales Person, State of California, 1980
Certified General Appraiser, State of California (#AG004793) Organizations
MAI #11145 - The Appraisal Institute
Public Financing
CASTOFF Meetings, 2006, 2007, 2008, 2009, 2010, 2011, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2022, 2023, 2024, 2025 and 2026
Speaker, Mello-Roos & Special Assessment Financing, UCLA Extension Public Policy Program, February 2009 and March 2011

Fontana City CouncilOctober 13, 2026

Fontana City Council
October 13, 2026