Agenda packet — Grand Terrace City Council, September 9, 2025 (part 3 of 4)

APPENDIX 1
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City Martinez Contra Costa 0.012% 0.0098593%
City Moraga Contra Costa 0.004% 0.0031007%
City Oakley Contra Costa 0.010% 0.0079416%
City Orinda Contra Costa 0.005% 0.0038157%
City Pinole Contra Costa 0.013% 0.0110909%
City Pittsburg Contra Costa 0.053% 0.0436369%
City Pleasant Hill Contra Costa 0.013% 0.0106309%
City Richmond Contra Costa 0.146% 0.1201444%
City San Pablo Contra Costa 0.018% 0.0148843%
City San Ramon Contra Costa 0.021% 0.0176459%
City Walnut Creek Contra Costa 0.026% 0.0212132%
County Del Norte County Del Norte 0.114% 0.140% 0.1189608% County El Dorado County El Dorado 0.768% 0.939% 0.7980034% City Placerville El Dorado 0.015% 0.0127642%
City South Lake Tahoe El Dorado 0.081% 0.0665456%
County Fresno County Fresno 1.895% 2.318% 1.9693410%
City Clovis Fresno 0.065% 0.0536211%
City Coalinga Fresno 0.012% 0.0098554%
City Fresno Fresno 0.397% 0.3270605%
City Kerman Fresno 0.005% 0.0042534%
City Kingsburg Fresno 0.008% 0.0066167%
City Mendota Fresno 0.002% 0.0019387%
City Orange Cove Fresno 0.004% 0.0035607%
City Parlier Fresno 0.008% 0.0069755%
City Reedley Fresno 0.012% 0.0098804%
City Sanger Fresno 0.018% 0.0146135%
City Selma Fresno 0.015% 0.0127537%
County Glenn County Glenn 0.107% 0.131% 0.1116978%
County Humboldt County Humboldt 1.030% 1.260% 1.0703185% Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Arcata Humboldt 0.054% 0.0447660%
City Eureka Humboldt 0.117% 0.143% 0.1216284%
City Fortuna Humboldt 0.032% 0.0266837%
County Imperial County Imperial 0.258% 0.315% 0.2679006% City Brawley Imperial 0.011% 0.0087986%
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City Calexico Imperial 0.019% 0.0152799%
City El Centro Imperial 0.158% 0.1302522%
City Imperial Imperial 0.006% 0.0048791%
County Inyo County Inyo 0.073% 0.089% 0.0754413%
County Kern County Kern 2.517% 3.079% 2.6159145%
City Arvin Kern 0.006% 0.0046425%
City Bakersfield Kern 0.212% 0.1747198%
City California City Kern 0.009% 0.0070820%
City Delano Kern 0.030% 0.0249316%
City McFarland Kern 0.003% 0.0025644%
City Ridgecrest Kern 0.015% 0.0120938%
City Shafter Kern 0.013% 0.0103417%
City Tehachapi Kern 0.009% 0.0073580%
City Wasco Kern 0.008% 0.0069861%
County Kings County Kings 0.293% 0.2413469%
City Avenal Kings 0.007% 0.0056335%
City Corcoran Kings 0.013% 0.0107032%
City Hanford Kings 0.027% 0.0226038%
City Lemoore Kings 0.016% 0.0131900%
County Lake County Lake 0.795% 0.6545389%
City Clearlake Lake 0.041% 0.050% 0.0426253%
City Lakeport Lake 0.021% 0.026% 0.0222964%
County Lassen County Lassen 0.319% 0.391% 0.3320610%
City Susanville Lassen 0.027% 0.0219295%
County Los Angeles County Los Angeles 13.896% 16.999% 14.4437559% Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Agoura Hills Los Angeles 0.005% 0.0040024%
City Alhambra Los Angeles 0.042% 0.0343309%
City Arcadia Los Angeles 0.033% 0.0267718%
City Artesia Los Angeles 0.001% 0.0005100%
City Azusa Los Angeles 0.026% 0.0210857%
City Baldwin Park Los Angeles 0.027% 0.0218520%
City Bell Los Angeles 0.008% 0.0068783%
City Bellflower Los Angeles 0.002% 0.0014485%
City Bell Gardens Los Angeles 0.014% 0.0114301%
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City Beverly Hills Los Angeles 0.065% 0.0534897%
City Burbank Los Angeles 0.100% 0.0823132%
City Calabasas Los Angeles 0.006% 0.0048948%
City Carson Los Angeles 0.019% 0.0159805%
City Cerritos Los Angeles 0.005% 0.0039682%
City Claremont Los Angeles 0.010% 0.0082584%
City Commerce Los Angeles 0.000% 0.0002971%
City Compton Los Angeles 0.044% 0.0361882%
City Covina Los Angeles 0.028% 0.0229127%
City Cudahy Los Angeles 0.001% 0.0006020%
City Culver City Los Angeles 0.055% 0.0449894%
City Diamond Bar Los Angeles 0.001% 0.0006993%
City Downey Los Angeles 0.052% 0.0429994%
City Duarte Los Angeles 0.003% 0.0027261%
City El Monte Los Angeles 0.031% 0.038% 0.0318985%
City El Segundo Los Angeles 0.033% 0.0268020%
City Gardena Los Angeles 0.034% 0.0278088%
City Glendale Los Angeles 0.166% 0.1366586%
City Glendora Los Angeles 0.016% 0.0134411%
City Hawaiian Gardens Los Angeles 0.005% 0.0040549%
City Hawthorne Los Angeles 0.050% 0.0407833%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Hermosa Beach Los Angeles 0.018% 0.0145307%
City Huntington Park Los Angeles 0.023% 0.0190667%
City Inglewood Los Angeles 0.059% 0.0489195%
City La Canada Flintridge Los Angeles 0.003% 0.0025565% City Lakewood Los Angeles 0.005% 0.0039971%
City La Mirada Los Angeles 0.010% 0.0081572%
City Lancaster Los Angeles 0.045% 0.0369689%
City La Puente Los Angeles 0.002% 0.0012999%
City La Verne Los Angeles 0.024% 0.0194190%
City Lawndale Los Angeles 0.002% 0.0017731%
City Lomita Los Angeles 0.004% 0.0031940%
City Long Beach Los Angeles 0.439% 0.3614151%
City Los Angeles Los Angeles 2.715% 3.321% 2.8218811%
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City Lynwood Los Angeles 0.016% 0.0134345%
City Malibu Los Angeles 0.002% 0.0019269%
City Manhattan Beach Los Angeles 0.032% 0.0260686%
City Maywood Los Angeles 0.004% 0.0035528%
City Monrovia Los Angeles 0.031% 0.0254455%
City Montebello Los Angeles 0.030% 0.0250670%
City Monterey Park Los Angeles 0.031% 0.0256677%
City Norwalk Los Angeles 0.031% 0.0258228%
City Palmdale Los Angeles 0.046% 0.0375827%
City Palos Verdes Estates Los Angeles 0.006% 0.0053102% City Paramount Los Angeles 0.011% 0.0091483%
City Pasadena Los Angeles 0.146% 0.1200524%
City Pico Rivera Los Angeles 0.022% 0.0183333%
City Pomona Los Angeles 0.111% 0.0911933%
City Rancho Palos Verdes Los Angeles 0.002% 0.0012645%
City Redondo Beach Los Angeles 0.062% 0.0506992%
City Rosemead Los Angeles 0.003% 0.0028260%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City San Dimas Los Angeles 0.003% 0.0022016%
City San Fernando Los Angeles 0.013% 0.0104837%
City San Gabriel Los Angeles 0.018% 0.0147726%
City San Marino Los Angeles 0.009% 0.0073791%
City Santa Clarita Los Angeles 0.022% 0.0178167%
City Santa Fe Springs Los Angeles 0.031% 0.0257531%
City Santa Monica Los Angeles 0.158% 0.1298513%
City Sierra Madre Los Angeles 0.006% 0.0048646%
City Signal Hill Los Angeles 0.010% 0.0084884%
City South El Monte Los Angeles 0.005% 0.0039603%
City South Gate Los Angeles 0.020% 0.0166272%
City South Pasadena Los Angeles 0.012% 0.0095334%
City Temple City Los Angeles 0.005% 0.0039498%
City Torrance Los Angeles 0.112% 0.0919820%
City Walnut Los Angeles 0.006% 0.0047305%
City West Covina Los Angeles 0.049% 0.0404521%
City West Hollywood Los Angeles 0.013% 0.0108517%
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APPENDIX
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City Whittier Los Angeles 0.032% 0.0260581%
County Madera County Madera 0.349% 0.427% 0.3630669%
City Chowchilla Madera 0.012% 0.0097332%
City Madera Madera 0.039% 0.0318441%
County Marin County Marin 0.564% 0.690% 0.5861325%
City Larkspur Marin 0.015% 0.0124697%
City Mill Valley Marin 0.020% 0.0168401%
City Novato Marin 0.028% 0.0229824%
City San Anselmo Marin 0.009% 0.0078062%
City San Rafael Marin 0.089% 0.0729823%
County Mariposa County Mariposa 0.084% 0.103% 0.0876131% County Mendocino County Mendocino 0.439% 0.536% 0.4558394% City Ukiah Mendocino 0.039% 0.0317153%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Merced County Merced 0.551% 0.674% 0.5724262%
City Atwater Merced 0.024% 0.0195846%
City Livingston Merced 0.006% 0.0045873%
City Los Banos Merced 0.020% 0.0165142%
City Merced Merced 0.061% 0.0500762%
County Modoc County Modoc 0.065% 0.080% 0.0678250%
County Mono County Mono 0.023% 0.029% 0.0242606%
County Monterey County Monterey 0.908% 1.111% 0.9437083% City Greenfield Monterey 0.006% 0.0050552%
City King City Monterey 0.005% 0.0037355%
City Marina Monterey 0.017% 0.0144098%
City Monterey Monterey 0.041% 0.0336540%
City Pacific Grove Monterey 0.009% 0.0074842%
City Salinas Monterey 0.094% 0.0776576%
City Seaside Monterey 0.023% 0.0191772%
City Soledad Monterey 0.007% 0.0060870%
County Napa County Napa 0.288% 0.352% 0.2994325%
City American Canyon Napa 0.017% 0.0136869%
City Napa Napa 0.078% 0.0642783%
County Nevada County Nevada 0.441% 0.539% 0.4579827%
City Grass Valley Nevada 0.024% 0.0197805%
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APPENDIX
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City Truckee Nevada 0.003% 0.0023843%
County Orange County Orange 4.364% 5.339% 4.5363576%
City Aliso Viejo Orange 0.014% 0.0113841%
City Anaheim Orange 0.554% 0.678% 0.5759282%
City Brea Orange 0.086% 0.0708897%
City Buena Park Orange 0.087% 0.0714352%
City Costa Mesa Orange 0.124% 0.152% 0.1288366%
City Cypress Orange 0.033% 0.0271937%
City Dana Point Orange 0.001% 0.0005560%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Fountain Valley Orange 0.055% 0.0455980%
City Fullerton Orange 0.137% 0.168% 0.1425744%
City Garden Grove Orange 0.213% 0.1752482%
City Huntington Beach Orange 0.247% 0.302% 0.2568420%
City Irvine Orange 0.139% 0.170% 0.1442350%
City Laguna Beach Orange 0.047% 0.058% 0.0493043%
City Laguna Hills Orange 0.014% 0.0115457%
City Laguna Niguel Orange 0.001% 0.0007071%
City Laguna Woods Orange 0.001% 0.0006546%
City La Habra Orange 0.060% 0.073% 0.0621049%
City Lake Forest Orange 0.012% 0.0101249%
City La Palma Orange 0.012% 0.0095439%
City Los Alamitos Orange 0.008% 0.0069190%
City Mission Viejo Orange 0.014% 0.0117560%
City Newport Beach Orange 0.179% 0.1470134%
City Orange Orange 0.150% 0.1231320%
City Placentia Orange 0.029% 0.035% 0.0298912%
City Rancho Santa Margarita Orange 0.001% 0.0006296%
City San Clemente Orange 0.008% 0.010% 0.0086083%
City San Juan Capistrano Orange 0.008% 0.0065510%
City Santa Ana Orange 0.502% 0.614% 0.5213866%
City Seal Beach Orange 0.020% 0.0165891%
City Stanton Orange 0.035% 0.0291955%
City Tustin Orange 0.073% 0.0600341%
City Westminster Orange 0.104% 0.127% 0.1082721%
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City Yorba Linda Orange 0.044% 0.0362223%
County Placer County Placer 1.045% 1.278% 1.0861002%
City Auburn Placer 0.017% 0.0141114%
City Lincoln Placer 0.031% 0.0255599%
City Rocklin Placer 0.076% 0.0625485%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Roseville Placer 0.196% 0.1616559%
County Plumas County Plumas 0.205% 0.251% 0.2128729%
County Riverside County Riverside 4.534% 5.547% 4.7128296% City Banning Riverside 0.017% 0.0143848%
City Beaumont Riverside 0.021% 0.0171135%
City Blythe Riverside 0.012% 0.0096714%
City Canyon Lake Riverside 0.000% 0.0001761%
City Cathedral City Riverside 0.067% 0.0553614%
City Coachella Riverside 0.021% 0.0173054%
City Corona Riverside 0.147% 0.1207083%
City Desert Hot Springs Riverside 0.024% 0.0200433%
City Eastvale Riverside 0.000% 0.0002747%
City Hemet Riverside 0.051% 0.0421792%
City Indio Riverside 0.056% 0.0457794%
City Jurupa Valley Riverside 0.001% 0.0008991%
City Lake Elsinore Riverside 0.021% 0.0172949%
City La Quinta Riverside 0.063% 0.0516732%
City Menifee Riverside 0.032% 0.0260909%
City Moreno Valley Riverside 0.137% 0.1130348%
City Murrieta Riverside 0.048% 0.059% 0.0497423%
City Norco Riverside 0.016% 0.0134542%
City Palm Desert Riverside 0.083% 0.0682465%
City Palm Springs Riverside 0.076% 0.0629862%
City Perris Riverside 0.009% 0.0076774%
City Rancho Mirage Riverside 0.052% 0.0431098%
City Riverside Riverside 0.268% 0.2206279%
City San Jacinto Riverside 0.010% 0.0085936%
City Temecula Riverside 0.022% 0.0180086%
City Wildomar Riverside 0.008% 0.0062500%
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APPENDIX 1
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County Sacramento County Sacramento 3.797% 4.645% 3.9465887% Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057% 0.0465312%
City Elk Grove Sacramento 0.130% 0.1066994%
City Folsom Sacramento 0.108% 0.0890850%
City Galt Sacramento 0.017% 0.0143704%
City Rancho Cordova Sacramento 0.008% 0.0067679%
City Sacramento Sacramento 0.721% 0.882% 0.7496530%
County San Benito County San Benito 0.106% 0.130% 0.1101417% City Hollister San Benito 0.027% 0.0225355%
County San Bernardino County San Bernardino 3.259% 3.987% 3.3878124% City Adelanto San Bernardino 0.008% 0.0066640%
City Apple Valley San Bernardino 0.025% 0.0207360%
City Barstow San Bernardino 0.015% 0.0122056%
City Chino San Bernardino 0.064% 0.0525893%
City Chino Hills San Bernardino 0.001% 0.0006388%
City Colton San Bernardino 0.031% 0.0253443%
City Fontana San Bernardino 0.112% 0.0920543%
City Grand Terrace San Bernardino 0.006% 0.0051051%
City Hesperia San Bernardino 0.035% 0.0291522%
City Highland San Bernardino 0.004% 0.0029061%
City Loma Linda San Bernardino 0.009% 0.0071188%
City Montclair San Bernardino 0.039% 0.0322108%
City Ontario San Bernardino 0.179% 0.1472934%
City Rancho Cucamonga San Bernardino 0.084% 0.0689431%
City Redlands San Bernardino 0.057% 0.0469150%
City Rialto San Bernardino 0.073% 0.0603206%
City San Bernardino San Bernardino 0.178% 0.1461880%
City Twentynine Palms San Bernardino 0.002% 0.0012605%
City Upland San Bernardino 0.052% 0.0424460%
City Victorville San Bernardino 0.033% 0.0269400%
City Yucaipa San Bernardino 0.016% 0.0128772%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
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City Yucca Valley San Bernardino 0.003% 0.0021228%
County San Diego County San Diego 5.706% 6.980% 5.9309748% City Carlsbad San Diego 0.128% 0.1050485%
City Chula Vista San Diego 0.189% 0.231% 0.1961456%
City Coronado San Diego 0.044% 0.0359095%
City El Cajon San Diego 0.113% 0.0933582%
City Encinitas San Diego 0.061% 0.074% 0.0630289%
City Escondido San Diego 0.145% 0.1192204%
City Imperial Beach San Diego 0.014% 0.0118283%
City La Mesa San Diego 0.055% 0.068% 0.0575593%
City Lemon Grove San Diego 0.022% 0.0183911%
City National City San Diego 0.080% 0.0656808%
City Oceanside San Diego 0.213% 0.1753428%
City Poway San Diego 0.062% 0.0511040%
City San Diego San Diego 1.975% 2.416% 2.0531169%
City San Marcos San Diego 0.089% 0.0733897%
City Santee San Diego 0.033% 0.0268401%
City Solana Beach San Diego 0.017% 0.0138564%
City Vista San Diego 0.052% 0.0425144%
Consolidated San Francisco San Francisco 3.026% 3.702% 3.1457169% County San Joaquin County San Joaquin 1.680% 2.055% 1.7460399% City Lathrop San Joaquin 0.009% 0.0075394%
City Lodi San Joaquin 0.053% 0.0439484%
City Manteca San Joaquin 0.054% 0.0443454%
City Ripon San Joaquin 0.013% 0.0104219%
City Stockton San Joaquin 0.313% 0.383% 0.3256176%
City Tracy San Joaquin 0.084% 0.0692047%
County San Luis Obispo County San Luis Obispo 0.816% 0.999% 0.8484126% City Arroyo Grande San Luis Obispo 0.024% 0.0199053%
City Atascadero San Luis Obispo 0.029% 0.0240680%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles) San Luis Obispo 0.043% 0.0353456% City Grover Beach San Luis Obispo 0.017% 0.0137881%
City Morro Bay San Luis Obispo 0.020% 0.0160922%
City San Luis Obispo San Luis Obispo 0.077% 0.0637841%
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County San Mateo County San Mateo 1.074% 1.313% 1.1159599% City Belmont San Mateo 0.021% 0.0169860%
City Burlingame San Mateo 0.019% 0.0152537%
City Daly City San Mateo 0.044% 0.0363880%
City East Palo Alto San Mateo 0.013% 0.0103982%
City Foster City San Mateo 0.020% 0.0166101%
City Half Moon Bay San Mateo 0.004% 0.0031638%
City Hillsborough San Mateo 0.013% 0.0110029%
City Menlo Park San Mateo 0.015% 0.0126209%
City Millbrae San Mateo 0.013% 0.0105836%
City Pacifica San Mateo 0.016% 0.0130625%
City Redwood City San Mateo 0.056% 0.0463511%
City San Bruno San Mateo 0.021% 0.0172161%
City San Carlos San Mateo 0.013% 0.0108885%
City San Mateo San Mateo 0.052% 0.0425841%
City South San Francisco San Mateo 0.043% 0.0353943%
County Santa Barbara County Santa Barbara 1.132% 1.385% 1.1768968% City Carpinteria Santa Barbara 0.001% 0.0008938%
City Goleta Santa Barbara 0.004% 0.0028969%
City Lompoc Santa Barbara 0.047% 0.0389379%
City Santa Barbara Santa Barbara 0.122% 0.1004559%
City Santa Maria Santa Barbara 0.058% 0.0479179%
County Santa Clara County Santa Clara 2.404% 2.941% 2.4987553% City Campbell Santa Clara 0.014% 0.0112566%
City Cupertino Santa Clara 0.008% 0.0066824%
City Gilroy Santa Clara 0.025% 0.0202891%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013% 0.0103338%
City Los Gatos Santa Clara 0.013% 0.0103220%
City Milpitas Santa Clara 0.036% 0.0298120%
City Morgan Hill Santa Clara 0.015% 0.0124619%
City Mountain View Santa Clara 0.041% 0.0334608%
City Palo Alto Santa Clara 0.039% 0.0323080%
City San Jose Santa Clara 0.294% 0.360% 0.3054960%
City Santa Clara Santa Clara 0.067% 0.0549723%
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City Saratoga Santa Clara 0.004% 0.0034161%
City Sunnyvale Santa Clara 0.053% 0.0434069%
County Santa Cruz County Santa Cruz 0.783% 0.957% 0.8135396% City Capitola Santa Cruz 0.020% 0.0168191%
City Santa Cruz Santa Cruz 0.143% 0.1180348%
City Scotts Valley Santa Cruz 0.015% 0.0126525%
City Watsonville Santa Cruz 0.063% 0.0520136%
County Shasta County Shasta 1.095% 1.339% 1.1380191%
City Anderson Shasta 0.024% 0.0198896%
City Redding Shasta 0.284% 0.2334841%
City Shasta Lake Shasta 0.004% 0.0031993%
County Siskiyou County Siskiyou 0.228% 0.279% 0.2373393% County Solano County Solano 0.760% 0.6260795%
City Benicia Solano 0.031% 0.0253903%
City Dixon Solano 0.016% 0.0130849%
City Fairfield Solano 0.109% 0.0897317%
City Suisun City Solano 0.021% 0.0176183%
City Vacaville Solano 0.119% 0.0976497%
City Vallejo Solano 0.167% 0.1373644%
County Sonoma County Sonoma 1.218% 1.490% 1.2661290%
City Healdsburg Sonoma 0.032% 0.0266929%
City Petaluma Sonoma 0.081% 0.0667507%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Rohnert Park Sonoma 0.041% 0.0340759%
City Santa Rosa Sonoma 0.184% 0.1519070%
City Sonoma Sonoma 0.022% 0.0183438%
City Windsor Sonoma 0.016% 0.0129298%
County Stanislaus County Stanislaus 1.722% 1.4182273%
City Ceres Stanislaus 0.041% 0.0340260%
City Modesto Stanislaus 0.217% 0.1788759%
City Newman Stanislaus 0.006% 0.0046964%
City Oakdale Stanislaus 0.018% 0.0145531%
City Patterson Stanislaus 0.015% 0.0126590%
City Riverbank Stanislaus 0.010% 0.0085699%
City Turlock Stanislaus 0.065% 0.0531966%
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County Sutter County Sutter 0.306% 0.374% 0.3179548%
City Yuba City Sutter 0.074% 0.0606242%
County Tehama County Tehama 0.213% 0.261% 0.2216654%
City Red Bluff Tehama 0.014% 0.0117771%
County Trinity County Trinity 0.082% 0.101% 0.0855476%
County Tulare County Tulare 0.809% 0.990% 0.8410949%
City Dinuba Tulare 0.014% 0.0116929%
City Exeter Tulare 0.004% 0.0032479%
City Farmersville Tulare 0.003% 0.0027879%
City Lindsay Tulare 0.007% 0.0057111%
City Porterville Tulare 0.021% 0.0171845%
City Tulare Tulare 0.037% 0.0302273%
City Visalia Tulare 0.066% 0.0545872%
County Tuolumne County Tuolumne 0.486% 0.594% 0.5047621% County Ventura County Ventura 2.192% 2.681% 2.2781201%
City Camarillo Ventura 0.002% 0.0012815%
City Fillmore Ventura 0.002% 0.0020294%
City Moorpark Ventura 0.008% 0.0067337%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Oxnard Ventura 0.156% 0.190% 0.1617338%
City Port Hueneme Ventura 0.021% 0.0174145%
City San Buenaventura (Ventura) Ventura 0.085% 0.0702181% City Santa Paula Ventura 0.014% 0.0119072%
City Simi Valley Ventura 0.065% 0.0533043%
City Thousand Oaks Ventura 0.022% 0.0179902%
County Yolo County Yolo 0.357% 0.437% 0.3713319%
City Davis Yolo 0.055% 0.0451747%
City West Sacramento Yolo 0.066% 0.0544321%
City Woodland Yolo 0.058% 0.0477904%
County Yuba County Yuba 0.214% 0.262% 0.2225679%
City Marysville Yuba 0.014% 0.0112079%
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APPENDIX 2

CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT
On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate Litigation, MDL 2804, addressing contingent attorney fee contracts between political subdivisions eligible to participate in the Sun Settlement and their counsel.

In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel [COUNSEL], and the California Attorney General, on behalf of the State of California, are entering into this California-Subdivision Backstop Agreement (Backstop Agreement). [SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State BackStop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys’ Fees, Costs, and Expenses) of the Sun Settlement Agreement.

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Sun Settlement Agreement and CA Sun Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Sun Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL] from [SUBDIVISION’S] CA Subdivision Fund allocation will not exceed [PERCENTAGE NOT TO EXCEED ONE-THIRD OR 5% OUT OF THE 15%] out of the [SUBDIVISION’S] 15% CA Subdivision Fund allocation; provided further that such payments, together with any contingency-fees that [COUNSEL] may receive from the Attorney Fee Fund will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Sun Settlement Agreement.
[COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Sun Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the Sun Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
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1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Zydus Settlement

1. Introduction
Pursuant to the Zydus Settlement Agreement, dated as of April 4, 2025, and any revision thereto (the “Zydus Settlement Agreement”), including Section VI and Exhibit O, the State of California proposes this agreement (the “CA Zydus Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections V and VI of the Zydus Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Section X of the Zydus Settlement Agreement.

Pursuant to Exhibit O, Paragraph 4, of the Zydus Settlement Agreement, acceptance of this CA Zydus Allocation Agreement is a requirement to be an Initial Participating Subdivision.

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Zydus Settlement Agreement. b) CA Litigating Special District means a Litigating Special District located in California.
c) Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. d) Opioid Defendant means any defendant including but not limited to Alvogen, Inc.

Amneal Pharmaceuticals LLC; Apotex Corp., Hikma Pharmaceuticals USA Inc. f/k/a West-Ward Pharmaceuticals Corp.; Indivior Inc.; Viatris Inc. (“Mylan”); Sun Pharmaceutical Industries, Inc.; Zydus Pharmaceuticals (USA) Inc.; Kroger Co., Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., Cencora, Inc. f/k/a AmerisourceBergen Corporation, McKesson Corporation, Dr.

Richard S. Sackler, Beverly Sackler, Jonathan Sackler, David Sackler, Marianna Sackler, Theresa Sackler, Ilene Sackler Lefcourt, Dr. Kathe Sackler, and Mortimer D.A. Sackler) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020.

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2 3. General Terms
This agreement is subject to the requirements of the Zydus Settlement Agreement, as well as applicable law, and the Zydus Settlement Agreement governs over any inconsistent provision of this CA Zydus Allocation Agreement. Terms used in this CA Zydus Allocation Agreement have the same meaning as in the Zydus Settlement Agreement unless otherwise defined herein.

Pursuant to Section VI(D)(1) of the Zydus Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section VI(B)(2) of the Zydus Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation.

This Agreement does not apply to funds received by California1 pursuant to Section X of the Zydus Settlement Agreement, including payments for Private Attorney Fees and the Additional Remediation Amount.

4. State Allocation
The Settlement Fund payments to California, pursuant to the Zydus Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlement Fund shall be combined pursuant to this CA Zydus Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”).

A. State of California Allocation
Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation.

B. CA Abatement Accounts Fund
i. Allocation of CA Abatement Accounts Funds
a) Seventy percent of the total Settlement Fund payments will be allocated to the CA Abatement Accounts Fund. The funds in the CA Abatement Accounts Fund will be allocated based on the allocation model developed in connection with the proposed negotiating class in the National Prescription Opiate Litigation (MDL No. 2804), as adjusted to reflect only those cities and counties that are eligible, based on population or litigation status, to become a CA Participating Subdivision. The percentage from the CA Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in 1 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit.

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3 Appendix 1 in the column entitled abatement percentage (the “Local Allocation”). For the avoidance of doubt, CA Litigating Special Districts and California towns, cities, and counties with a population less than 10,000 are not eligible to receive an allocation of CA Abatement Accounts Funds.
b) A CA Participating Subdivision that is a county, or a city and county, will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision, and will receive payments as provided in the Zydus Settlement Agreement. c) A CA Participating Subdivision that is a city will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision. The Local Allocation share for a city that is a CA Participating Subdivision will be paid to the county in which the city is located, rather than to the city, so long as the county is a CA Participating Subdivision; provided, however, that if a city currently receives direct payment of its share of funds in the National Opioids Settlement with Distributors Cencora, Inc. (f/k/a AmerisourceBergenCorporation), Cardinal Health, Inc., and McKesson Corporation (the “Distributors Settlement”), that city’s Local Allocation amount will be paid directly to the city. If a city later changes or has already changed its distribution election in the Distributors Settlement, that change in election will apply here, provided that the change in election is received by the settlement administrator at least 60 days prior to a Payment Date. A Local Allocation share allocated to a city but paid to a county is not required to be spent exclusively for abatement activities in that city, but will become part of the county’s share of the CA Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). d) A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Zydus Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions.
e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision.
f) Funds received by a CA Participating Subdivision, and not expended or encumbered within five years of receipt and in accordance with the Zydus Settlement Agreement and this CA Zydus Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State.

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4 ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Zydus Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction;
(5) interventions to prevent drug addiction in vulnerable youth, including but not limited to, youth in foster care, juvenile justice-impacted youth, youth experiencing adversities related to socioeconomic status, and unhoused youth; and/or (6) the purchase of naloxone for distribution and efforts to expand access to naloxone for opioid overdose reversals.
c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list. d) For the avoidance of doubt, and subject to the requirements of the Zydus Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Zydus Settlement Agreement and this CA Zydus Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Docusign Envelope ID: 126C18EE-E893-4B5D-BEE1-424AD3F34DC2

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5 Subdivision and any CA Participating Subdivision must agree to their share being reallocated.
iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Zydus Settlement Agreement and this CA Zydus Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Zydus Settlement Agreement or this CA Zydus Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Zydus Settlement Agreement or this CA Zydus Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement.
e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions.

C. CA Subdivision Fund
i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the Zydus Settlement Agreement and this CA Zydus Allocation Agreement, to fund future Opioid Remediation and reimburse past opioidrelated expenses, which may include fees and expenses related to litigation.

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6 However, in no event shall more than one third (5% out of the 15%) of CA Subdivision Funds be used for litigation-related fees and expenses.

D. Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the settlement agreements with other Opioid Defendants.

A Plaintiff Subdivision may separately agree to use up to one-third (5% out of the 15%) of its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(X), of the Zydus Settlement Agreement and the MDL Fees Order, provided that: (1) such payments, together with any payments to contingency-fee counsel from the Private Attorneys Fee amount related to such Plaintiff Subdivision, do not exceed 15% of a Plaintiff Subdivision’s total gross recovery under this Zydus Settlement Agreement; and (2) the Plaintiff Subdivision certifies that any payments made under a State Back-Stop agreement will be made in accordance with the 95% Opioid Abatement use requirements under Section VI(B)(1) of the Zydus Settlement Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Zydus Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments.

To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of Appendix 2 may be entered into by a Plaintiff Subdivision, private counsel, and the California Office of the Attorney General. The California Office of the Attorney General shall, upon the request of a Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and its private counsel if it is in the form of Appendix 2. The California Office of the Attorney General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms.

For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General.
///
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7 5. State and Subdivision Reporting
a) DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site.
b) Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the Zydus Settlement Agreement and this CA Zydus Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Zydus Settlement Agreement and this CA Zydus Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section VI(B)(2) of the Zydus Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Zydus. e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions.

6. Miscellaneous
a) The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Zydus Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa.
b) Except as provided in the Zydus Settlement Agreement, this CA Zydus Allocation Agreement is not enforceable by any party other than the State and the CA Participating Docusign Envelope ID: 126C18EE-E893-4B5D-BEE1-424AD3F34DC2

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8 Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party.
c) Except as provided in the CA Zydus Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. d) Except as provided in the Zydus Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

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9 The undersigned, Grand Terrace city, CA, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds –Zydus Settlement is a requirement to be an Initial Participating Subdivision in the Zydus Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Zydus Settlement.

Signature: /signer_1_som/
Name: /name_1_som/
Title: /title_1_som/
Date: /date_1_som/
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APPENDIX 1
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Zydus Settlement, whereas the percentages shown in the Abatement Percentage column should not change.

Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change. Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C.

Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage.

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APPENDIX 1
1of15
100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Alameda County Alameda 2.332% 2.853% 2.4237952%
City Alameda Alameda 0.069% 0.0570162%
City Albany Alameda 0.013% 0.0107768%
City Berkeley Alameda 0.152% 0.1249656%
City Dublin Alameda 0.033% 0.040% 0.0338810%
City Emeryville Alameda 0.023% 0.0185765%
City Fremont Alameda 0.108% 0.0888576%
City Hayward Alameda 0.117% 0.0966218%
City Livermore Alameda 0.054% 0.0446740%
City Newark Alameda 0.026% 0.0217626%
City Oakland Alameda 0.486% 0.595% 0.5055601%
City Piedmont Alameda 0.014% 0.0114064%
City Pleasanton Alameda 0.067% 0.0554547%
City San Leandro Alameda 0.039% 0.0321267%
City Union City Alameda 0.043% 0.0352484%
County Amador County Amador 0.226% 0.277% 0.2349885%
County Butte County Butte 1.615% 1.975% 1.6783178%
City Chico Butte 0.216% 0.264% 0.2246499%
City Oroville Butte 0.079% 0.0646595%
County Calaveras County Calaveras 0.226% 0.277% 0.2351644% County Colusa County Colusa 0.059% 0.0489221%
County Contra Costa County Contra Costa 2.102% 2.571% 2.1844585% City Antioch Contra Costa 0.037% 0.0301879%
City Brentwood Contra Costa 0.026% 0.0215339%
City Clayton Contra Costa 0.002% 0.0018060%
City Concord Contra Costa 0.055% 0.0456676%
City Danville Contra Costa 0.010% 0.0082255%
City El Cerrito Contra Costa 0.023% 0.0189024%
City Hercules Contra Costa 0.010% 0.0078273%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Lafayette Contra Costa 0.006% 0.0046030%
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APPENDIX 2

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Zydus Settlement Agreement and CA Zydus Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Zydus Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL] from [SUBDIVISION’S] CA Subdivision Fund allocation will not exceed [PERCENTAGE NOT TO EXCEED ONE-THIRD OR 5% OUT OF THE 15%] out of the [SUBDIVISION’S] 15% CA Subdivision Fund allocation; provided further that such payments, together with any contingency-fees that [COUNSEL] may receive from the Attorney Fee Fund will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Zydus Settlement Agreement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Zydus Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the Zydus Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
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01247.0001 2032900.1
RESOLUTION NO. 2025-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND

TERRACE, CALIFORNIA, AUTHORIZING THE CITY OF GRAND

TERRACE TO ENTER INTO THE MASTER SETTLEMENT

AGREEMENTS WITH ALVOGEN, AMNEAL, APOTEX, HIKMA,

INDIVIOR, MYLAN, SUN, AND ZYDUS (INCLUDING THE RELATED
PARTICIPATION AGREEMENTS); AGREE TO THE TERMS OF THE

RELATED STATE-SUBDIVISION AGREEMENTS AND AUTHORIZE

ENTRY INTO THE RELATED STATE-SUBDIVISION ALLOCATION
AGREEMENTS WITH THE ATTORNEY GENERAL; AND AUTHORIZING

THE CITY MANAGER TO CARRY OUT FURTHER RELATED ACTS
WHEREAS, the United States is facing an ongoing public health crisis of opioid abuse, addiction, overdose, and death, forcing the State of California and California counties and cities to spend billions of dollars each year to address the direct consequences of this crisis; and,
WHEREAS, pending in the U.S. District Court for the Northern District of Ohio is a multidistrict litigation (“MDL”) being pursued by numerous public entity plaintiffs against the retailers and manufacturers of various opioid products based on the allegation that the defendants’ unlawful conduct caused the opioid epidemic; and, WHEREAS, on or about April 4, 2025 a proposed nationwide tentative settlement agreement was reached between plaintiffs in the MDL and Alvogen, Inc., Amneal Pharmaceuticals LLC, Apotex Corp., Hikma Pharmaceuticals USA Inc. (f/k/a West-Ward Pharmaceuticals Corp.), Indivior Inc., Vistris Inc. (formerly Mylan), Sun Pharmaceutical Industries, Inc., and Zydus Pharmaceuticals (USA) Inc.; and WHEREAS, Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus shall be referred in this Resolution as “Settling Defendants”; and WHEREAS, as part of the settlement with the Settling Defendants, local subdivisions, including certain cities, that are not plaintiffs in the MDL may participate in the settlements in exchange for a release of the Settling Defendants (“Participating Subdivision”); and,
WHEREAS, copies of the proposed terms of those proposed nationwide settlements have been set forth in the Master Settlement Agreements with the Settling Defendants; and,
WHEREAS, copies of the Master Settlement Agreements have been made available to the City Council with this Resolution (“Master Settlement Agreements”); and, WHEREAS, the Master Settlement Agreements provide, among other things, for the payment of a certain sum to settling government entities in the United States, including to the State of California and Participating Subdivisions upon occurrence of certain events as defined in the Master Settlement Agreements (“California Opioid Funds”); and,

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01247.0001 2032900.1
WHEREAS, in order to become a Participating Subdivision, the City must enter into “Participation Agreements” which allow participation in the Master Settlement Agreements; and,
WHEREAS, California local governments in the MDL have engaged in extensive discussions with the State Attorney General’s Office (“AGO”) as to how the California Opioid Funds will be allocated, which has resulted in the Proposed California StateSubdivision Agreements Regarding Distribution and Use of Settlement Funds (“Allocation Agreements”) from the settlements with the Settling Defendants; and, WHEREAS, copies of the Allocation Agreements for all of the settlements with the Settling Defendants have been made available to the City Council with this Resolution; and,
WHEREAS, the Allocation Agreements allocate the California Opioid Funds as follows: 15% to the State Fund; 70% to the Remediation Accounts Fund; and 15% to the California Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlements shall be combined pursuant to the Allocation Agreements, and 15% of total from each settlement shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Remediation Accounts Fund (“CA Remediation Fund”), and 15% to eligible subdivisions through the California Subdivision Fund (“CA Subdivision Fund”); and,
WHEREAS, under the Master Settlement Agreements, certain local subdivisions that did not file a lawsuit against the Settlement Defendants may qualify to participate in the settlements and obtain funds from the Remediation Accounts Fund; and, WHEREAS, the City is eligible to participate in the Master Settlement Agreements and become a CA Participating Subdivision; and,
WHEREAS, City’s share of the CA portion of the settlement funds will be determined based upon a final calculation as provided in the California Opioid Settlements Allocation Agreements (the “Local Allocation”); and, WHEREAS, a CA Participating Subdivision that is a city will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision. The Local Allocation share for a city that is a CA Participating Subdivision will be paid to the county in which the city is located, unless the city elects to take a direct election of the settlement funds, so long as: (a) the county is a CA Participating Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date; and,
WHEREAS, the intent of this Resolution is to authorize the City to enter into the Master Settlement Agreements with the Settling Defendants by executing the Participation Agreements and to enter into the Allocation Agreements by executing the signature pages to those agreements.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE,

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01247.0001 2032900.1
CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.

2. The City Manager, or his designee, is hereby approved and authorized to settle and release the City’s claims against the Settling Defendants in exchange for the consideration set forth in the Master Settlement Agreements, Participation Agreements, Allocation Agreements, and all exhibits thereto.

3. The City Manager, or his designee, is hereby authorized to carry out all necessary acts such that the City can participate in the Master Settlement Agreements, including, without limitation, execution (as necessary) of the Participation Agreements, Master Settlement Agreements, Allocation Agreements, and all related documents; and the transmittal thereof as necessary and appropriate.

4. All actions heretofore taken by the City Council and other appropriate public officers and agents of the City with respect to the matters contemplated under this Resolution are hereby ratified, confirmed and approved.

5. It is the intent of the City Council that these funds which are provided to the City are allocated directly to, and administered by, the County of San Bernardino on behalf of the City. Accordingly, the City Manager and/or his designee are authorized and directed to take all necessary actions and to cooperate with the County of San Bernardino and any relevant parties to effectuate the allocation of the funds to the County for administration in accordance with the requirements and restrictions on said funds.

6. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED and ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 9th day of September, 2025. _______________________________
Bill Hussey
Mayor
ATTEST:
________________________________
Daysi Alcocer
City Clerk
APPROVED AS TO FORM:

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01247.0001 2032900.1
________________________________
Adrian R. Guerra
City Attorney

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AGENDA REPORT
MEETING DATE: September 9, 2025
TITLE: Subordination of Deed of Trust recorded on July 2, 2003, regarding the property located at 22565 Franklin Street, Grand Terrace PRESENTED BY:

RECOMMENDATION: ADOPT A RESOLUTION OF THE BOARD OF DIRECTORS OF THE

GRAND TERRACE HOUSING AUTHORITY APPROVING MODIFICATION

TO AN EXISTING PROMISSORY NOTE AND DEED OF TRUST AGAINST THE RESIDENTIAL PROPERTY LOCATED AT 22565 FRANKLIN

STREET, GRAND TERRACE, TO ALLOW (I) A MODIFIED PAYOFF
UNDER THE NOTE; AND (II) THE EQUITY SHARE PAYMENT TO

CONTINUE UNDER THE NOTE SECURED BY A DEED OF TRUST IN

SECOND LIEN POSITION AND (III) THAT THE MODIFIED TRUST DEED

MAY BE SUBORDINATED TO A REFINANCE LOAN IN THE AMOUNT OF $265,000 ISSUED BY AMERICAN NETWORK SERVICES; AND

AUTHORIZING THE CHAIRMAN AND HOUSING AUTHORITY LEGAL

COUNSEL TO PREPARE THE REVISED RDA LOAN DOCUMENTS AND

TO EXECUTE SUCH ADDITIONAL DOCUMENTS AS REASONABLY

NECESSARY TO COMPLETE THE REFINANCE LOAN
2030 VISION STATEMENT:

BACKGROUND:

On July 2, 2003, the Community Redevelopment Agency of the City of Grand Terrace (“RDA”) made a non-interest bearing loan (“RDA Loan”), in the original principal amount of $44,000 (“Principal Amount”), secured by a Deed of Trust (“DOT”). The proceeds were used by Michelle Boustedt (“Original Owner”) to make a downpayment to purchase a single family home located at 22565 Franklin Street, Grand Terrace (“Property”). The RDA Loan did not bear interest and did not require any monthly payments but did provide that the entire principal balance would be due upon sale or encumbrancing (refinancing) of the Property PLUS a share of the equity equal to 22.336% of the appreciation in value of the Property above the initial purchase price (“Equity Share Payment”).

On or around 2012, the Community Redevelopment Agency of the City of Grand Terrace was dissolved. Ownership of the RDA Loan was transferred to the City of Grand Terrace as Successor Agency, and subsequently delegated to the City of Grand Terrace Housing Authority (“Housing Authority”) pursuant to Housing Authority Resolution No. 2012-01.

In March of 2019, the Original Owner transferred title of the Property into an intervivos family trust, with her spouse, Robert Boustedt who became the sole trustee upon her passing (“Current Owner”) and who is now seeking to refinance the Property with a loan from American Financial Network (“Refi Lender”) in the amount of Two Hundred Sixty-Five Thousand Dollars ($265,000) (“Refinance

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Loan”).

Due to debt resulting from ailing health and limited borrowing power, the Current Borrower cannot qualify for an amount which fully satisfies both the Principal Balance of $44,000 plus the Equity Share Payment due under the RDA Loan. Besides paying off existing loans, the Refi Lender is requiring that some of the Current Borrower’s unsecured debt be paid off as a condition to the Refinance Loan.

The Current Borrower is requesting that the Housing Authority modify the RDA Loan to (i) allow the Principal Amount ($44,000) to be paid now, (ii) the RDA Loan be modified to have the Equity Share Payment continue as a lien against the Property (“Modified RDA Loan”) AND (iii) that the Modified RDA Loan be subordinated to the Refinance Loan so that the Refinance Loan will be paid first in the event of a sale or foreclosure.

DISCUSSION:

The Property was originally purchased in 2003 for $197,000 and is currently worth approximately $570,000. Accordingly, the Equity Share Payment currently due to the Housing Authority is approximately $83,313. Therefore, the total amount currently due to the Housing Authority under the RDA Loan is $44,000 + $83,313 = $127,313.

The $265,000 loan proceeds from the Refinance Loan are to be allocated as follows:
• $68,000 to pay off existing 1st trust deed
• $52,000 to pay off existing 2nd trust deed
• $44,000 to Housing Authority (RDA Loan) (3rd lien position) • $35,000 mandatory debt to be paid through escrow per the loan underwriter • $15,500 loan fees and costs
• $50,500 to be paid to Current Owner to payoff other unsecured debt and obtain a new HVAC ($10,500).

The Board has three options:

1. The Board may require immediate repayment of the Equity Share Payment ($83,313).

However, doing so will prevent the Current Owner from securing the Refinance Loan, resulting in the RDA Loan remaining in place as a third-priority lien against the Property;

2. The Board may consider amending the RDA Loan to (i) accept immediate repayment of the Principal Amount of $44,000, and (ii) modify the RDA Loan to allow payment of only a portion of the Equity Share Payment; and

3. The Board may (i) accept immediate repayment of the Principal Amount of $44,000, and (ii) modify the RDA Loan to allow the entire Equity Share Payment to continue to be secured by the DOT against the Property in second lien position.

With options 2 or 3 the modified RDA loan will need to be subordinated to the Refinance Loan placing the modified RDA Loan in second lien position. Of course, subordination carries risk. In the event of a foreclosure of the Refinance Loan in the future, the RDA Loan could be partially or fully extinguished if foreclosure sale proceeds are insufficient to cover all outstanding senior obligations and the modified RDA Loan. However, the current RDA Loan is already subordinate to 2 senior loans.

RECOMMENDATION:

Staff recommends the Board:

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• Consent to modify the RDA Loan to provide for the current payoff of the Principal Amount ($44,000) and to permit the Equity Share Payment to continue to be secured by the RDA deed of trust against the Property in second lien position. The revised RDA Loan should be insured by an ALTA loan title insurance policy insuring it is in second lien position with the costs of the title policy paid by the Current Owner as part of the closing of the Refinance Loan. • Require that the remaining $50,500 be allocated as follows: (i) $40,000 be used to pay-off the Current Owner’s unsecured debt through the escrow; and (ii) $15,500 be paid to the Current Owner for the new HVAC.
• Authorize the Chairman of the Housing Authority and the Housing Authority’s legal counsel to prepare the revised RDA Loan documents and to execute such additional documents as reasonably necessary to complete the Refinance Loan.

ATTACHMENTS:
1) Proposed Resolution
2) Current Appraisal
3) RDA Original Loan Documents
4) Housing Authority Resolution No. 2012-01
ENVIRONMENTAL IMPACT:

None.

FISCAL IMPACT:

The Housing Authority will receive the $44,000 loan principal immediately, but the Equity Share Payment will continue to be secured by the modified RDA trust deed against the Property which shall be due and payable upon the future sale or refinancing of the Property. The Equity Share Payment will continue to increase as the Property increases in value.

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01247.0001 2033181.2
RESOLUTION NO. 2025-____

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE GRAND TERRACE

HOUSING AUTHORITY, APPROVING MODIFICATION TO AN EXISTING

PROMISSORY NOTE AND DEED OF TRUST AGAINST THE RESIDENTIAL PROPERTY LOCATED AT 22565 FRANKLIN STREET, GRAND TERRACE, TO ALLOW (i) A MODIFIED PAYOFF UNDER THE NOTE; AND (ii) THE EQUITY

SHARE PAYMENT TO CONTINUE UNDER THE NOTE SECURED BY A DEED OF TRUST IN SECOND LIEN POSITION; AND (iii) THAT THE MODIFIED TRUST

DEED MAY BE SUBORDINATED TO A REFINANCE LOAN IN THE AMOUNT OF $265,000 ISSUED BY AMERICAN NETWORK SERVICES; AND AUTHORIZING

THE CHAIRMAN AND HOUSING AUTHORITY LEGAL COUNSEL TO PREPARE

THE REVISED RDA LOAN DOCUMENTS AND TO EXECUTE SUCH ADDITIONAL

DOCUMENTS AS REASONABLY NECESSARY TO COMPLETE THE REFINANCE LOAN.

WHEREAS, on July 2, 2003, the Community Redevelopment Agency of the City of Grand Terrace (“RDA”) made a non-interest bearing loan (“RDA Loan”), in the original principal amount of $44,000 (“Principal Amount”) secured by a Deed of Trust (“DOT”), with the proceeds used by Michelle Boustedt (“Original Owner”) to make a downpayment to purchase a single family home located at 22565 Franklin Street, Grand Terrace (“Property”); and WHEREAS, the RDA Loan did not bear interest and did not require any monthly payments but did provide that the entire principal balance would be due upon sale or encumbrancing (refinancing) of the Property PLUS a share of the equity equal to 22.336% of the appreciation in value of the Property above the initial purchase price (“Equity Share Payment”); and WHEREAS, on or around 2012, the Community Redevelopment Agency of the City of Grand Terrace was dissolved, and ownership of the RDA Loan was transferred to the City of Grand Terrace as Successor Agency, then subsequently delegated to the City of Grand Terrace Housing Authority (“Housing Authority”).

WHEREAS, in March of 2019, the Original Owner transferred title of the Property into an intervivos family trust, with her spouse, Robert Boustedt who became the sole trustee upon her passing (“Current Owner”) and who is now seeking to refinance the Property with a loan from American Financial Network (“Refi Lender”) in the amount of Two Hundred Sixty-Five Thousand Dollars ($265,000) (“Refinance Loan”); and
WHEREAS, due to debt resulting from ailing health and limited borrowing power, the Current Borrower cannot qualify for an amount which fully satisfies both the Principal Balance of $44,000 plus the Equity Share Payment due under the RDA Loan; and WHEREAS, the Current Borrower is requesting that the Housing Authority modify the RDA Loan to (i) allow the Principal Amount ($44,000) to be paid now, and (ii) the RDA Loan be modified to have the Equity Share Payment continue as a lien against the Property (“Modified RDA Loan”) AND that (iii) the Modified RDA Loan be subordinated to the Refinance Loan.

NOW, THEREFORE, THE GRAND TERRACE HOUSING AUTHORITY, DOES HEREBY RESOLVE AS FOLLOWS:

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01247.0001 2033181.2

1. The Housing Authority hereby approves and consents to modify the RDA Loan to provide for the current payoff of the Principal Amount ($44,000) and to permit the Equity Share Payment to continue to be secured by the RDA deed of trust against the Property in second lien position.

2. The Housing Authority’s aforementioned approval is contingent on the satisfaction of the following: (a) The revised RDA Loan should be insured by an ALTA loan title insurance policy insuring it is in second lien position with the costs of the title policy paid by the Current Owner as part of the closing of the Refinance Loan, and (b) that $50,500 of the Refinance Loan be allocated as follows: (i) $40,000 be used to pay-off the Current Owner’s unsecured debt through the escrow; and (ii) $15,500 be paid to the Current Owner for the new HVAC.

3. The Housing Authority authorizes the Chairman and the Housing Authority’s attorney to prepare the revised RDA Loan documents and to execute such additional documents as reasonably necessary to complete the Refinance Loan.

4. If any section, subsection, sentence, clause, phrase, or portion of this Resolution is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The Board of Directors of the Grand Terrace Housing Authority hereby declares that it would have adopted this Resolution and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.

5. The Secretary shall certify to the adoption of this Resolution.

6. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED and ADOPTED by the Board of Directors of the Grand Terrace Housing Authority at a regular meeting held on the ___ day of September 2025.

Bill Hussey
Chairman
ATTEST:

Daysi Alcocer
Secretary
APPROVED AS TO FORM:

Adrian R. Guerra
General Counsel

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Serial# 6E2160D8
esign.alamode.com/verify
Boustedt, Robert Lynn & Julie Ann 3429-25
22565 Franklin St
Grand Terrace San Bernardino CA 92313
American Financial Network, Inc
USPAP Identification ..........................................................................................................................................................................................................................................................

UAD Definitions Addendum ................................................................................................................................................................................................................................................

Cover Page ........................................................................................................................................................................................................................................................................

Letter of Transmittal ...........................................................................................................................................................................................................................................................

Summary of Salient Features ..............................................................................................................................................................................................................................................

GLB Act Privacy Notification ...............................................................................................................................................................................................................................................

URAR .................................................................................................................................................................................................................................................................................

Additional Comparables 4-6 ...............................................................................................................................................................................................................................................

Additional Listings 1-3 .......................................................................................................................................................................................................................................................

Market Conditions Addendum to the Appraisal Report ........................................................................................................................................................................................................

Supplemental Addendum ...................................................................................................................................................................................................................................................

Location Map .....................................................................................................................................................................................................................................................................

Satelllite Image of Subject ..................................................................................................................................................................................................................................................

Legal Description Map ........................................................................................................................................................................................................................................................

Plat Map ............................................................................................................................................................................................................................................................................

Building Sketch ..................................................................................................................................................................................................................................................................

Subject Photos ...................................................................................................................................................................................................................................................................

Photograph Addendum .......................................................................................................................................................................................................................................................

Comparable Photos 1-3 .....................................................................................................................................................................................................................................................

Comparable Photos 4-6 .....................................................................................................................................................................................................................................................

Listings Photos 1-3 ............................................................................................................................................................................................................................................................

Copy of Appraisers License ................................................................................................................................................................................................................................................

Copy of E & O Insurance .................................................................................................................................................................................................................................................... 1 2
5 6
7 8
9 15
16 17
18 24
25 26
27 28
29 30
31 32
33 34
35 36
37 Form TOCNP - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Borrower
Lender/Client
File No.

Property Address
City County State Zip Code

TABLE OF CONTENTS
Serial# 6E2160D8
esign.alamode.com/verify

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Serial# 6E2160D8
esign.alamode.com/verify
Boustedt, Robert Lynn & Julie Ann 3429-25
22565 Franklin St
Grand Terrace San Bernardino CA 92313
American Financial Network, Inc

APPRAISAL AND REPORT IDENTIFICATION
2-2(a)
2-2(b)
Comments on Standards Rule 2-3
I certify that, to the best of my knowledge and belief:
- The statements of fact contained in this report are true and correct. - The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.
- Unless otherwise indicated, I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. - Unless otherwise indicated, I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.
- I have no bias with respect to the property that is the subject of this report or the parties involved with this assignment. - My engagement in this assignment was not contingent upon developing or reporting predetermined results. - My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. - My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice that were in effect at the time this report was prepared.
- Unless otherwise indicated, I have made a personal inspection of the property that is the subject of this report. - Unless otherwise indicated, no one provided significant real property appraisal assistance to the person(s) signing this certification (if there are exceptions, the name of each individual providing significant real property appraisal assistance is stated elsewhere in this report).

Under current market conditions the reasonable exposure time for the subject property is approximately zero to three months. This is based on the analyses of current market trends in the general area and takes into account the size, condition and price range of the subject property and surrounding area. It presupposes that the listed price would be at or near the appraised value. It also assumes aggressive professional marketing by reputable local real estate offices.

Comments on Appraisal and Report Identification
Note any USPAP-related issues requiring disclosure and any state mandated requirements:

Dennis Galassi
AR037515
CA 07/22/2027
08/11/2025
08/10/2025
08/10/2025
Form ID14E - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Borrower
Lender/Client
File No.

Property Address
City County State Zip Code
This Report is one of the following types:

Appraisal Report (A written report prepared under Standards Rule , pursuant to the Scope of Work, as disclosed elsewhere in this report.) Restricted
Appraisal Report
(A written report prepared under Standards Rule , pursuant to the Scope of Work, as disclosed elsewhere in this report, restricted to the stated intended use by the specified client or intended user.) Reasonable Exposure Time (USPAP defines Exposure Time as the estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal.) My Opinion of Reasonable Exposure Time for the subject property at the market value stated in this report is:

APPRAISER:

Signature:

Name:

State Certification #:
or State License #:

State: Expiration Date of Certification or License:

Date of Signature and Report:

Effective Date of Appraisal:

Inspection of Subject: None Interior and Exterior Exterior-Only Date of Inspection (if applicable):

SUPERVISORY or CO-APPRAISER (if applicable):

Signature:

Name:

State Certification #:
or State License #:

State: Expiration Date of Certification or License:

Date of Signature:

Inspection of Subject: None Interior and Exterior Exterior-Only Date of Inspection (if applicable):

Serial# 6E2160D8
esign.alamode.com/verify

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Serial# 6E2160D8
esign.alamode.com/verify
3429-25
3429-25
Form UADDEFINE1A - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE File No.

UNIFORM APPRAISAL DATASET (UAD) DEFINITIONS ADDENDUM
(Source: Fannie Mae UAD Appendix D: UAD Field-Specific Standardization Requirements) Condition Ratings and Definitions
C1
The improvements have been recently constructed and have not been previously occupied. The entire structure and all components are new and the dwelling features no physical depreciation.

Note: Newly constructed improvements that feature recycled or previously used materials and/or components can be considered new dwellings provided that the dwelling is placed on a 100 percent new foundation and the recycled materials and the recycled components have been rehabilitated/remanufactured into like-new condition. Improvements that have not been previously occupied are not considered “new” if they have any significant physical depreciation (that is, newly constructed dwellings that have been vacant for an extended period of time without adequate maintenance or upkeep).

C2
The improvements feature no deferred maintenance, little or no physical depreciation, and require no repairs. Virtually all building components are new or have been recently repaired, refinished, or rehabilitated. All outdated components and finishes have been updated and/or replaced with components that meet current standards. Dwellings in this category are either almost new or have been recently completely renovated and are similar in condition to new construction.

Note: The improvements represent a relatively new property that is well maintained with no deferred maintenance and little or no physical depreciation, or an older property that has been recently completely renovated.

C3
The improvements are well maintained and feature limited physical depreciation due to normal wear and tear. Some components, but not every major building component, may be updated or recently rehabilitated. The structure has been well maintained.

Note: The improvement is in its first-cycle of replacing short-lived building components (appliances, floor coverings, HVAC, etc.) and is being well maintained. Its estimated effective age is less than its actual age. It also may reflect a property in which the majority of short-lived building components have been replaced but not to the level of a complete renovation.

C4
The improvements feature some minor deferred maintenance and physical deterioration due to normal wear and tear. The dwelling has been adequately maintained and requires only minimal repairs to building components/mechanical systems and cosmetic repairs. All major building components have been adequately maintained and are functionally adequate.

Note: The estimated effective age may be close to or equal to its actual age. It reflects a property in which some of the short-lived building components have been replaced, and some short-lived building components are at or near the end of their physical life expectancy; however, they still function adequately. Most minor repairs have been addressed on an ongoing basis resulting in an adequately maintained property.

C5
The improvements feature obvious deferred maintenance and are in need of some significant repairs. Some building components need repairs, rehabilitation, or updating. The functional utility and overall livability is somewhat diminished due to condition, but the dwelling remains useable and functional as a residence.

Note: Some significant repairs are needed to the improvements due to the lack of adequate maintenance. It reflects a property in which many of its short-lived building components are at the end of or have exceeded their physical life expectancy but remain functional.

C6
The improvements have substantial damage or deferred maintenance with deficiencies or defects that are severe enough to affect the safety, soundness, or structural integrity of the improvements. The improvements are in need of substantial repairs and rehabilitation, including many or most major components.

Note: Substantial repairs are needed to the improvements due to the lack of adequate maintenance or property damage. It reflects a property with conditions severe enough to affect the safety, soundness, or structural integrity of the improvements.

Quality Ratings and Definitions
Q1
Dwellings with this quality rating are usually unique structures that are individually designed by an architect for a specified user. Such residences typically are constructed from detailed architectural plans and specifications and feature an exceptionally high level of workmanship and exceptionally high-grade materials throughout the interior and exterior of the structure. The design features exceptionally high-quality exterior refinements and ornamentation, and exceptionally high-quality interior refinements. The workmanship, materials, and finishes throughout the dwelling are of exceptionally high quality.

Q2
Dwellings with this quality rating are often custom designed for construction on an individual property owner’s site. However, dwellings in this quality grade are also found in high-quality tract developments featuring residence constructed from individual plans or from highly modified or upgraded plans. The design features detailed, high quality exterior ornamentation, high-quality interior refinements, and detail. The workmanship, materials, and finishes throughout the dwelling are generally of high or very high quality.

UAD Version 9/2011 (Updated 1/2014)
Serial# 6E2160D8
esign.alamode.com/verify

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Serial# 6E2160D8 Form UADDEFINE1A - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE esign.alamode.com/verify

UNIFORM APPRAISAL DATASET (UAD) DEFINITIONS ADDENDUM
(Source: Fannie Mae UAD Appendix D: UAD Field-Specific Standardization Requirements) Quality Ratings and Definitions (continued)
Q3
Dwellings with this quality rating are residences of higher quality built from individual or readily available designer plans in above-standard residential tract developments or on an individual property owner’s site. The design includes significant exterior ornamentation and interiors that are well finished. The workmanship exceeds acceptable standards and many materials and finishes throughout the dwelling have been upgraded from “stock” standards.

Q4
Dwellings with this quality rating meet or exceed the requirements of applicable building codes. Standard or modified standard building plans are utilized and the design includes adequate fenestration and some exterior ornamentation and interior refinements. Materials, workmanship, finish, and equipment are of stock or builder grade and may feature some upgrades.

Q5
Dwellings with this quality rating feature economy of construction and basic functionality as main considerations. Such dwellings feature a plain design using readily available or basic floor plans featuring minimal fenestration and basic finishes with minimal exterior ornamentation and limited interior detail. These dwellings meet minimum building codes and are constructed with inexpensive, stock materials with limited refinements and upgrades.

Q6
Dwellings with this quality rating are of basic quality and lower cost; some may not be suitable for year-round occupancy. Such dwellings are often built with simple plans or without plans, often utilizing the lowest quality building materials. Such dwellings are often built or expanded by persons who are professionally unskilled or possess only minimal construction skills. Electrical, plumbing, and other mechanical systems and equipment may be minimal or non-existent. Older dwellings may feature one or more substandard or non-conforming additions to the original structure
Definitions of Not Updated, Updated, and Remodeled
Not Updated
Little or no updating or modernization. This description includes, but is not limited to, new homes.

Residential properties of fifteen years of age or less often reflect an original condition with no updating, if no major components have been replaced or updated. Those over fifteen years of age are also considered not updated if the appliances, fixtures, and finishes are predominantly dated. An area that is ‘Not Updated’ may still be well maintained and fully functional, and this rating does not necessarily imply deferred maintenance or physical/functional deterioration.

Updated
The area of the home has been modified to meet current market expectations. These modifications are limited in terms of both scope and cost.

An updated area of the home should have an improved look and feel, or functional utility. Changes that constitute updates include refurbishment and/or replacing components to meet existing market expectations. Updates do not include significant alterations to the existing structure.

Remodeled
Significant finish and/or structural changes have been made that increase utility and appeal through complete replacement and/or expansion.

A remodeled area reflects fundamental changes that include multiple alterations. These alterations may include some or all of the following: replacement of a major component (cabinet(s), bathtub, or bathroom tile), relocation of plumbing/gas fixtures/appliances, significant structural alterations (relocating walls, and/or the addition of) square footage). This would include a complete gutting and rebuild.

Explanation of Bathroom Count
Three-quarter baths are counted as a full bath in all cases. Quarter baths (baths that feature only a toilet) are not included in the bathroom count. The number of full and half baths is reported by separating the two values using a period, where the full bath count is represented to the left of the period and the half bath count is represented to the right of the period.

Example:

3.2 indicates three full baths and two half baths.

UAD Version 9/2011 (Updated 1/2014)
Serial# 6E2160D8
esign.alamode.com/verify

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Serial# 6E2160D8 Form UADDEFINE1A - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE esign.alamode.com/verify

UNIFORM APPRAISAL DATASET (UAD) DEFINITIONS ADDENDUM
(Source: Fannie Mae UAD Appendix D: UAD Field-Specific Standardization Requirements) Abbreviations Used in Data Standardization Text
Abbreviation Full Name Fields Where This Abbreviation May Appear A Adverse Location & View
ac Acres Area, Site
AdjPrk Adjacent to Park Location
AdjPwr Adjacent to Power Lines Location
ArmLth Arms Length Sale Sale or Financing Concessions
AT Attached Structure Design (Style)
B Beneficial Location & View
ba Bathroom(s) Basement & Finished Rooms Below Grade
br Bedroom Basement & Finished Rooms Below Grade
BsyRd Busy Road Location
c Contracted Date Date of Sale/Time
Cash Cash Sale or Financing Concessions
Comm Commercial Influence Location
Conv Conventional Sale or Financing Concessions
cp Carport Garage/Carport
CrtOrd Court Ordered Sale Sale or Financing Concessions CtySky City View Skyline View View
CtyStr City Street View View
cv Covered Garage/Carport
DOM Days On Market Data Sources
DT Detached Structure Design (Style)
dw Driveway Garage/Carport
e Expiration Date Date of Sale/Time
Estate Estate Sale Sale or Financing Concessions
FHA Federal Housing Authority Sale or Financing Concessions g Garage Garage/Carport
ga Attached Garage Garage/Carport
gbi Built-in Garage Garage/Carport
gd Detached Garage Garage/Carport
GlfCse Golf Course Location
Glfvw Golf Course View View
GR Garden Design (Style)
HR High Rise Design (Style)
in Interior Only Stairs Basement & Finished Rooms Below Grade Ind Industrial Location & View
Listing Listing Sale or Financing Concessions
Lndfl Landfill Location
LtdSght Limited Sight View
MR Mid-rise Design (Style)
Mtn Mountain View View
N Neutral Location & View
NonArm Non-Arms Length Sale Sale or Financing Concessions o Other Basement & Finished Rooms Below Grade
O Other Design (Style)
op Open Garage/Carport
Prk Park View View
Pstrl Pastoral View View
PwrLn Power Lines View
PubTrn Public Transportation Location
Relo Relocation Sale Sale or Financing Concessions
REO REO Sale Sale or Financing Concessions
Res Residential Location & View
RH USDA - Rural Housing Sale or Financing Concessions
rr Recreational (Rec) Room Basement & Finished Rooms Below Grade RT Row or Townhouse Design (Style)
s Settlement Date Date of Sale/Time
SD Semi-detached Structure Design (Style)
Short Short Sale Sale or Financing Concessions
sf Square Feet Area, Site, Basement
sqm Square Meters Area, Site
Unk Unknown Date of Sale/Time
VA Veterans Administration Sale or Financing Concessions w Withdrawn Date Date of Sale/Time
wo Walk Out Basement Basement & Finished Rooms Below Grade Woods Woods View View
Wtr Water View View
WtrFr Water Frontage Location
wu Walk Up Basement Basement & Finished Rooms Below Grade UAD Version 9/2011 (Updated 1/2014)
Serial# 6E2160D8
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Serial# 6E2160D8
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APPRAISAL OF REAL PROPERTY
22565 Franklin St
Grand Terrace, CA 92313
Tract# 8018 Lot# 13 M.B.# 112 Pages: 24 - 25
American Financial Network, Inc
10 Pointe Drive, Suite 330
Brea, CA 92821
570,000
08/10/2025
Dennis Galassi
High Speed Appraisals
10121 Palo Alto Street
Rancho Cucamonga, CA 91730
626-550-9630
[email protected]
Form GA1VL - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE

LOCATED AT
FOR

OPINION OF VALUE
AS OF
BY
Serial# 6E2160D8
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Serial# 6E2160D8
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Dennis Galassi
High Speed Appraisals
10121 Palo Alto Street
Rancho Cucamonga, CA 91730
American Financial Network, Inc
10 Pointe Drive, Suite 330
Brea, CA 92821
Re: Property: 22565 Franklin St
Grand Terrace, CA 92313
Borrower: Boustedt, Robert Lynn & Julie Ann
File No.: 3429-25
In accordance with your request, we have appraised the above referenced property. The report of that appraisal is attached.

The purpose of this appraisal is to estimate the market value of the property described in this appraisal report, as improved, in unencumbered fee simple title of ownership.

This report is based on a physical analysis of the site and improvements, a locational analysis of the neighborhood and city, and an economic analysis of the market for properties such as the subject. The appraisal was developed and the report was prepared in accordance with the Uniform Standards of Professional Appraisal Practice.

The value conclusions reported are as of the effective date stated in the body of the report and contingent upon the certification and limiting conditions attached.

It has been a pleasure to assist you. Please do not hesitate to contact me or any of my staff if we can be of additional service to you.

Sincerely,
Dennis Galassi
Serial# 6E2160D8
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Page 374 of 451 ends

Serial# 6E2160D8 Form SSD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE esign.alamode.com/verify 22565 Franklin St
Tract# 8018 Lot# 13 M.B.# 112 Pages: 24 - 25
Grand Terrace
San Bernardino
CA
92313
0071.04
40140
Boustedt, Robert Lynn & Julie Ann
American Financial Network, Inc
1,505
N;Res;
53 C4
6 3

2.0 Dennis Galassi
08/10/2025
570,000
Borrower
Lender/Client

SUMMARY OF SALIENT FEATURES

SUBJECT INFORMATION
Subject Address
Legal Description
City
County
State
Zip Code
Census Tract
Map Reference

SALES PRICE
Sale Price
Date of Sale
$

CLIENT DESCRIPTION OF IMPROVEMENTS
Size (Square Feet)
Price per Square Foot
Location
Age
Condition
Total Rooms
Bedrooms
Baths
$

APPRAISER
Appraiser
Date of Appraised Value
VALUE
Final Estimate of Value $
Serial# 6E2160D8
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Serial# 6E2160D8
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In the course of performing appraisals, we may collect what is known as "nonpublic personal information" about you. This information is used to facilitate the services that we provide to you and may include the information provided to us by you directly or received by us from others with your authorization.

We do not disclose any nonpublic personal information obtained in the course of our engagement with our clients to nonaffiliated third parties, except as necessary or as required by law. By way of example, a necessary disclosure would be to our employees, and in certain situations, to unrelated third party consultants who need to know that information to assist us in providing appraisal services to you. All of our employees and any third party consultants we employ are informed that any information they see as part of an appraisal assignment is to be maintained in strict confidence within the firm.

A disclosure required by law would be a disclosure by us that is ordered by a court of competent jurisdiction with regard to a legal action to which you are a party.

We will retain records relating to professional services that we have provided to you for a reasonable time so that we are better able to assist you with your needs. In order to protect your nonpublic personal information from unauthorized access by third parties, we maintain physical, electronic and procedural safeguards that comply with our professional standards to insure the security and integrity of your information.

Please feel free to call us an any time if you have any questions about the confidentiality of the information that you provide to us.

High Speed Appraisals Services
Form PRV_LG - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE

PRIVACY NOTICE
Pursuant to the Gramm-Leach-Bliley Act of 1999, effective July 1, 2001, Appraisers, along with all providers of personal financial services are now required by federal law to inform their clients of the policies of the firm with regard to the privacy of client nonpublic personal information. As professionals, we understand that your privacy is very important to you and are pleased to provide you with this information.

Types of Nonpublic Personal Information We Collect
Parties to Whom We Disclose Information
Confidentiality and Security
Serial# 6E2160D8
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Serial# 6E2160D8
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High Speed Appraisals Services
3429-25
3429-25
22565 Franklin St Grand Terrace CA 92313
Boustedt, Robert Lynn & Julie Ann Boustedt Family Trust San Bernardino Tract# 8018 Lot# 13 M.B.# 112 Pages: 24 - 25
1178-171-25-0000 2024 3,413
Grand Terrace 40140 0071.04
0 0
American Financial Network, Inc 10 Pointe Drive, Suite 330, Brea, CA 92821 CRMLS, Owner
400
810
605
7 124
49 75
15 10
Northern - Brentwood Street / Southern - Main Street / Western - 215 Freeway / Eastern - Honey Hill Drive (north of Palm Ave) & Blue Mountain (south of Palm Ave.) The subject is located in the city of Grand Terrace. The neighborhood is comprised primarily of one and two-story single family residences of average to good quality, condition, appeal, and marketability. No adverse influences affecting the marketability of the subject or surrounding properties in the neighborhood were noted.

Market trends indicate property values have remained stable within the prior 12 months of the effective date of appraisal. Demand/Supply levels appear to be in balance. The average marketing times of homes listed for sale in the prior 12 months to the effective date of appraisal is under 3 months.

67.5' x 107' (See Plat Map) 7222 sf Rectangular N;Res;
R-1 7.2 / Residential Single Family Residential (minimum lot size 7200 Sq.Ft.) Paved Asphalt
None
X 06071C8693H 08/28/2008
Only typical utility easements noted.

The site is an interior lot of average size and graded at street level. No adverse easements or encroachments were noted. The title report was not reviewed.
1 Ranch
1972
20 0
0 None Noted
Concrete / Average
Stucco / Average
CompShingle / Avg.
1Ft Eve / Average
Vinyl / Average
None
Screens / Average
Tile,WdLmnt / Avg.

Drywall / Average
Wood-Paint / Avg.

Tile,WdLmnt / Avg.

Tile-Drywall / Avg.

Gas 0
Cvrd
None
0 Vinyl,Blk
Cvrd Entry
None
2 Concrete
2 0
6 3 2.0 1,505
Dual pane vinyl windows througout
C4;Kitchen-not updated;Bathrooms-updated-six to
ten years ago;Primary bathroom updated with wood laminate flooring within prior 10 years. The improvements feature some minor deferred maintenance and physical deterioration due to normal wear and tear. The dwelling has been adequately maintained and requires only minimal repairs to building components/mechanical systems and cosmetic repairs. All major building components have been adequately maintained and are functionally adequate.

No physical deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property noted.

The subject property generally conforms to the neighborhood in terms of functional utility, style, condition, use, and construction.

Form 1004UAD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Uniform Residential Appraisal Report File #

SUBJECT C
ONTR
A

CT NEIGHBO
RHO

OD SITE IMPR
O
VEMENTS The purpose of this summary appraisal report is to provide the lender/client with an accurate, and adequately supported, opinion of the market value of the subject property.

Property Address City State Zip Code
Borrower Owner of Public Record County
Legal Description
Assessor's Parcel # Tax Year R.E. Taxes $
Neighborhood Name Map Reference Census Tract
Occupant Owner Tenant Vacant Special Assessments $ PUD HOA $ per year per month Property Rights Appraised Fee Simple Leasehold Other (describe) Assignment Type Purchase Transaction Refinance Transaction Other (describe) Lender/Client Address
Is the subject property currently offered for sale or has it been offered for sale in the twelve months prior to the effective date of this appraisal? Yes No Report data source(s) used, offering price(s), and date(s).

I did did not analyze the contract for sale for the subject purchase transaction. Explain the results of the analysis of the contract for sale or why the analysis was not performed.

Contract Price $ Date of Contract Is the property seller the owner of public record? Yes No Data Source(s) Is there any financial assistance (loan charges, sale concessions, gift or downpayment assistance, etc.) to be paid by any party on behalf of the borrower? Yes No If Yes, report the total dollar amount and describe the items to be paid.

Note: Race and the racial composition of the neighborhood are not appraisal factors.

Neighborhood Characteristics
Location Urban Suburban Rural
Built-Up Over 75% 25-75% Under 25%
Growth Rapid Stable Slow
One-Unit Housing Trends
Property Values Increasing Stable Declining
Demand/Supply Shortage In Balance Over Supply
Marketing Time Under 3 mths 3-6 mths Over 6 mths
One-Unit Housing
PRICE
$ (000)
AGE
(yrs)
Low
High
Pred.

Present Land Use %
One-Unit %
2-4 Unit %
Multi-Family %
Commercial %
Other %
Neighborhood Boundaries
Neighborhood Description
Market Conditions (including support for the above conclusions) Dimensions Area Shape View
Specific Zoning Classification Zoning Description
Zoning Compliance Legal Legal Nonconforming (Grandfathered Use) No Zoning Illegal (describe) Is the highest and best use of subject property as improved (or as proposed per plans and specifications) the present use? Yes No If No, describe Utilities Public Other (describe) Public Other (describe) Electricity
Gas
Water
Sanitary Sewer
Off-site Improvements - Type Public Private
Street
Alley
FEMA Special Flood Hazard Area Yes No FEMA Flood Zone FEMA Map # FEMA Map Date Are the utilities and off-site improvements typical for the market area? Yes No If No, describe Are there any adverse site conditions or external factors (easements, encroachments, environmental conditions, land uses, etc.)? Yes No If Yes, describe General Description
Units One One with Accessory Unit
# of Stories
Type Det. Att. S-Det./End Unit
Existing Proposed Under Const.

Design (Style)
Year Built
Effective Age (Yrs)
Foundation
Concrete Slab Crawl Space
Full Basement Partial Basement
Basement Area sq.ft.

Basement Finish %
Outside Entry/Exit Sump Pump
Evidence of Infestation
Dampness Settlement
Exterior Description materials/condition
Foundation Walls
Exterior Walls
Roof Surface
Gutters & Downspouts
Window Type
Storm Sash/Insulated
Screens
Interior materials/condition
Floors
Walls
Trim/Finish
Bath Floor
Bath Wainscot
Attic None
Drop Stair Stairs
Floor Scuttle
Finished Heated
Heating FWA HWBB Radiant
Other Fuel
Cooling Central Air Conditioning
Individual Other
Amenities
Fireplace(s) #
Patio/Deck
Pool
Woodstove(s) #
Fence
Porch
Other
Car Storage None
Driveway # of Cars
Driveway Surface
Garage # of Cars
Carport # of Cars
Att. Det. Built-in
Appliances Refrigerator Range/Oven Dishwasher Disposal Microwave Washer/Dryer Other (describe) Finished area above grade contains: Rooms Bedrooms Bath(s) Square Feet of Gross Living Area Above Grade Additional features (special energy efficient items, etc.).

Describe the condition of the property (including needed repairs, deterioration, renovations, remodeling, etc.).

Are there any physical deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property? Yes No If Yes, describe Does the property generally conform to the neighborhood (functional utility, style, condition, use, construction, etc.)? Yes No If No, describe Freddie Mac Form 70 March 2005 UAD Version 9/2011 Page 1 of 6 Fannie Mae Form 1004 March 2005 Serial# 6E2160D8
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Serial# 6E2160D8
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3429-25
3429-25
12 515,000 680,000
28 540,000 700,000
22565 Franklin St
Grand Terrace, CA 92313
N;Res;
Fee Simple
7222 sf
N;Res;
DT1;Ranch
Q4
53 C4
6 3 2.0
1,505
0sf
Average

FAU / CA
Standard
2ga2dw
Patio / Porch
Fireplace(s) None
Pool/Spa None
GuestHouse/Bonus RoomEtc. None
per ParcelQuest/Realist
08/10/2025
22564 Pico St
Grand Terrace, CA 92313

0.02 miles S
580,000
431.55
MLS# IV25082187;DOM 20
ParcelQuest / DOC# 132341
ArmLth
Conv;24500 -10,000
s06/25;c05/25
A;FrntsNeighTr; +7,500
Fee Simple
7276 sf 0
N;Res;
DT1;Ranch
Q4
53 C3 -25,000
6 4 2.0 0
1,344 +12,075
0sf
Average

FAU / CA
Standard
2ga2dw
Patio / Porch
None
None
None
-15,425

2.7 9.4 564,575
per ParcelQuest/Realist
08/10/2025
22565 Robin Way
Grand Terrace, CA 92313

0.26 miles S
565,000
497.36
MLS# IG25062264;DOM 20
ParcelQuest / Listing Agent
ArmLth
Conv;15622 -2,910
s08/25;c05/25
N;Res;
Fee Simple
7605 sf 0
N;Res;
DT1;Ranch
Q4
49 0
C3 -25,000
5 3 2.0 0
1,136 +27,675
0sf
Average

FAU / CA
Standard
2ga2dw
Patio / Porch
None
None
None
-235

0.0 9.8 564,765
per ParcelQuest/Realist
08/10/2025
12794 Reed Ave
Grand Terrace, CA 92313

0.37 miles SW
570,000
413.64
MLS# IG25055863;DOM 6
ParcelQuest / DOC# 94022
ArmLth
Conv;8550
s04/25;c03/25
N;Res;
Fee Simple
7350 sf 0
N;Res;
DT1;Ranch
Q4
53 C5 0
6 4 2.0 0
1,378 +9,525
0sf
Average

FAU / CA
Standard
2ga2dw
Patio / Porch
None
None
None
9,525

1.7 1.7 579,525
per ParcelQuest/Realist
08/10/2025
Appraiser researched the sale and/or
transfer history of the subject property and the comparable sales through ParcelQuest, Realist and the local MLS.

ParcelQuest; Realist ; MLS
ParcelQuest; Realist ; MLS
The subject property does not appear to have sold or transferred within the prior 36 months to the effective date of appraisal.

In addition, none of the sales comparables appear to have sold/transferred within the prior 12 months to recent date of sale.

Comparables 1 - 4 are verified closed sales. The most weight given to sales comparables #1, #2 and #3 due to to recent dates of sale, close proximity and overall similarity to the subject.

SEE SUPPLEMENTAL ADDENDUM FOR ADDITIONAL COMMENT
570,000
570,000 577,000
The most weight was given to the Sales Comparison Approach as it best reflects the present action of buyers and sellers in the marketplace, little consideration was given to the Cost Approach, and no consideration was given to the Income Approach. 570,000 08/10/2025
Form 1004UAD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Uniform Residential Appraisal Report File #

SALES C
O
MPA

RISON APPR
O
A
CH REC

ONCILIATION
There are comparable properties currently offered for sale in the subject neighborhood ranging in price from $ to $ .

There are comparable sales in the subject neighborhood within the past twelve months ranging in sale price from $ to $ .

FEATURE SUBJECT COMPARABLE SALE # 1 COMPARABLE SALE # 2 COMPARABLE SALE # 3 Address
Proximity to Subject
Sale Price $ $ $ $
Sale Price/Gross Liv. Area $ sq.ft. $ sq.ft. $ sq.ft. $ sq.ft.

Data Source(s)
Verification Source(s)
VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment Sales or Financing
Concessions
Date of Sale/Time
Location
Leasehold/Fee Simple
Site
View
Design (Style)
Quality of Construction
Actual Age
Condition
Above Grade Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Room Count
Gross Living Area sq.ft. sq.ft. sq.ft. sq.ft.

Basement & Finished
Rooms Below Grade
Functional Utility
Heating/Cooling
Energy Efficient Items
Garage/Carport
Porch/Patio/Deck
Net Adjustment (Total) + - $ + - $ + - $
Adjusted Sale Price
of Comparables $ $ $
Net Adj. %
Gross Adj. %
Net Adj. %
Gross Adj. %
Net Adj. %
Gross Adj. %
I did did not research the sale or transfer history of the subject property and comparable sales. If not, explain My research did did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal.

Data Source(s)
My research did did not reveal any prior sales or transfers of the comparable sales for the year prior to the date of sale of the comparable sale.

Data Source(s)
Report the results of the research and analysis of the prior sale or transfer history of the subject property and comparable sales (report additional prior sales on page 3).

ITEM SUBJECT COMPARABLE SALE #1 COMPARABLE SALE #2 COMPARABLE SALE #3 Date of Prior Sale/Transfer
Price of Prior Sale/Transfer
Data Source(s)
Effective Date of Data Source(s)
Analysis of prior sale or transfer history of the subject property and comparable sales Summary of Sales Comparison Approach
Indicated Value by Sales Comparison Approach $
Indicated Value by: Sales Comparison Approach $ Cost Approach (if developed) $ Income Approach (if developed) $ This appraisal is made "as is", subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been completed, subject to the following repairs or alterations on the basis of a hypothetical condition that the repairs or alterations have been completed, or subject to the following required inspection based on the extraordinary assumption that the condition or deficiency does not require alteration or repair:

Based on a complete visual inspection of the interior and exterior areas of the subject property, defined scope of work, statement of assumptions and limiting conditions, and appraiser's certification, my (our) opinion of the market value, as defined, of the real property that is the subject of this report is $ , as of , which is the date of inspection and the effective date of this appraisal.

Freddie Mac Form 70 March 2005 UAD Version 9/2011 Page 2 of 6 Fannie Mae Form 1004 March 2005 Serial# 6E2160D8
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Serial# 6E2160D8
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3429-25
3429-25
ADDITIONAL COMMENTS (SPECIFIC CLIENT REQUIREMENTS):

The subject's water heater was properly double strapped as of the effective date of appraisal.

The subject was properly equipped with a carbon monoxide detectors as of the effective date of appraisal, a minimum of one carbon monoxide detector is required on each level per state laws. Carbon monoxide detectors are to be installed in any hallways/rooms adjacent to sleeping areas. The appraiser noted a dual carbon monoxide / smoke detector was installed in hallway adjacent to bedrooms.

The subject was properly equipped with smoke detectors as of the effective date of appraisal. The number and location of smoke alarms is specified in section 310.9.1.4 of the California Building Code. One smoke alarm should be placed on each floor in non-sleeping areas. In addition, one smoke alarm must be installed in each room where sleeping occurs and one smoke alarm should be located in each hallway that leads directly to sleeping rooms. The subject was equipped with a dual carbon monoxide / smoke detector in hallway adjacent to bedrooms, additional smoke detectors noted in each of the three bedrooms.

ADDITIONAL COMMENTS: (PUBLIC RECORDS DISCEPANCY - BEDROOM COUNT):

Per ParcelQuest and public records the subjects is noted as featuring a total of 4-bedrooms. However, upon inspection the appraiser noted the subjects features a total of 3-bedrooms plus office (no closet). It appears interior has been re-configured after purchase in March 2024 with 2 additional bedrooms created from original family room area. It appears ParcelQuest and public records is incorrect and/or not yet updated, for the purposes of completing this report the subject has been noted as featuring a total of 3 bedrooms.

ADDITIONAL COMMENTS (CONCESSIONS):

Concession adjustments were made for closing cost and repair credits. No adjustments utilized for concessions labeled or described as "buyer broker fee" as these types of concessions or seller fees can be typical for the subject market area.

Land to value ratio in western areas of Southern
California's San Bernardino County areas is typically 40 to 80 percent.

Marshall & Swift
Average July 2025
335,000
1,505 175.00 263,375
0 Patio / Porch 15,000
492 50.00 24,600
302,975
75,975 75,975
227,000
15,000
577,000
The factors for "Replacement Cost New" were obtained from "Marshall & Swift Residential Cost Handbook" Land value abstracted from area home sales due to the lack of available vacant land market sales. Land to value ratio typical for the area.
60 N/A
Form 1004UAD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Uniform Residential Appraisal Report File #

ADDITIONAL C
O
M

MENTS C

OST APPR
O
A
CH INC
O

ME PUD INFO
R
M
ATION
COST APPROACH TO VALUE (not required by Fannie Mae)
Provide adequate information for the lender/client to replicate the below cost figures and calculations.

Support for the opinion of site value (summary of comparable land sales or other methods for estimating site value)

ESTIMATED REPRODUCTION OR REPLACEMENT COST NEW
Source of cost data
Quality rating from cost service Effective date of cost data Comments on Cost Approach (gross living area calculations, depreciation, etc.) OPINION OF SITE VALUE =$
DWELLING Sq.Ft. @ $ =$
Sq.Ft. @ $ =$
=$
Garage/Carport Sq.Ft. @ $ =$
Total Estimate of Cost-New =$
Less Physical Functional External
Depreciation =$( )
Depreciated Cost of Improvements =$
"As-is" Value of Site Improvements =$
Estimated Remaining Economic Life (HUD and VA only) Years INDICATED VALUE BY COST APPROACH =$ INCOME APPROACH TO VALUE (not required by Fannie Mae)
Estimated Monthly Market Rent $ X Gross Rent Multiplier = $ Indicated Value by Income Approach Summary of Income Approach (including support for market rent and GRM) PROJECT INFORMATION FOR PUDs (if applicable)
Is the developer/builder in control of the Homeowners' Association (HOA)? Yes No Unit type(s) Detached Attached Provide the following information for PUDs ONLY if the developer/builder is in control of the HOA and the subject property is an attached dwelling unit.

Legal Name of Project
Total number of phases Total number of units Total number of units sold Total number of units rented Total number of units for sale Data source(s) Was the project created by the conversion of existing building(s) into a PUD? Yes No If Yes, date of conversion.

Does the project contain any multi-dwelling units? Yes No Data Source Are the units, common elements, and recreation facilities complete? Yes No If No, describe the status of completion.

Are the common elements leased to or by the Homeowners' Association? Yes No If Yes, describe the rental terms and options.

Describe common elements and recreational facilities.

Freddie Mac Form 70 March 2005 UAD Version 9/2011 Page 3 of 6 Fannie Mae Form 1004 March 2005 Serial# 6E2160D8
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Serial# 6E2160D8
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3429-25
3429-25
Form 1004UAD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Uniform Residential Appraisal Report File #
This report form is designed to report an appraisal of a one-unit property or a one-unit property with an accessory unit; including a unit in a planned unit development (PUD). This report form is not designed to report an appraisal of a manufactured home or a unit in a condominium or cooperative project.

This appraisal report is subject to the following scope of work, intended use, intended user, definition of market value, statement of assumptions and limiting conditions, and certifications. Modifications, additions, or deletions to the intended use, intended user, definition of market value, or assumptions and limiting conditions are not permitted. The appraiser may expand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisal assignment. Modifications or deletions to the certifications are also not permitted. However, additional certifications that do not constitute material alterations to this appraisal report, such as those required by law or those related to the appraiser's continuing education or membership in an appraisal organization, are permitted.

SCOPE OF WORK: The scope of work for this appraisal is defined by the complexity of this appraisal assignment and the reporting requirements of this appraisal report form, including the following definition of market value, statement of assumptions and limiting conditions, and certifications. The appraiser must, at a minimum: (1) perform a complete visual inspection of the interior and exterior areas of the subject property, (2) inspect the neighborhood, (3) inspect each of the comparable sales from at least the street, (4) research, verify, and analyze data from reliable public and/or private sources, and (5) report his or her analysis, opinions, and conclusions in this appraisal report.

INTENDED USE: The intended use of this appraisal report is for the lender/client to evaluate the property that is the subject of this appraisal for a mortgage finance transaction.

INTENDED USER: The intended user of this appraisal report is the lender/client.

DEFINITION OF MARKET VALUE: 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. *Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgment.

STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS: The appraiser's certification in this report is subject to the following assumptions and limiting conditions:

1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it, except for information that he or she became aware of during the research involved in performing this appraisal. The appraiser assumes that the title is good and marketable and will not render any opinions about the title.

2. The appraiser has provided a sketch in this appraisal report to show the approximate dimensions of the improvements.

The sketch is included only to assist the reader in visualizing the property and understanding the appraiser's determination of its size.

3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in this appraisal report whether any portion of the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination.

4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand, or as otherwise required by law.

5. The appraiser has noted in this appraisal report any adverse conditions (such as needed repairs, deterioration, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the research involved in performing the appraisal. Unless otherwise stated in this appraisal report, the appraiser has no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of the property (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) that would make the property less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist.

Because the appraiser is not an expert in the field of environmental hazards, this appraisal report must not be considered as an environmental assessment of the property.

6. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that the completion, repairs, or alterations of the subject property will be performed in a professional manner.

Freddie Mac Form 70 March 2005 UAD Version 9/2011 Page 4 of 6 Fannie Mae Form 1004 March 2005 Serial# 6E2160D8
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Page 380 of 451 ends

1. I have, at a minimum, developed and reported this appraisal in accordance with the scope of work requirements stated in this appraisal report.

2. I performed a complete visual inspection of the interior and exterior areas of the subject property. I reported the condition of the improvements in factual, specific terms. I identified and reported the physical deficiencies that could affect the livability, soundness, or structural integrity of the property.

3. I performed this appraisal in accordance with the requirements of the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal report was prepared.

4. I developed my opinion of the market value of the real property that is the subject of this report based on the sales comparison approach to value. I have adequate comparable market data to develop a reliable sales comparison approach for this appraisal assignment. I further certify that I considered the cost and income approaches to value but did not develop them, unless otherwise indicated in this report.

5. I researched, verified, analyzed, and reported on any current agreement for sale for the subject property, any offering for sale of the subject property in the twelve months prior to the effective date of this appraisal, and the prior sales of the subject property for a minimum of three years prior to the effective date of this appraisal, unless otherwise indicated in this report.

6. I researched, verified, analyzed, and reported on the prior sales of the comparable sales for a minimum of one year prior to the date of sale of the comparable sale, unless otherwise indicated in this report.

7. I selected and used comparable sales that are locationally, physically, and functionally the most similar to the subject property.

8. I have not used comparable sales that were the result of combining a land sale with the contract purchase price of a home that has been built or will be built on the land.

9. I have reported adjustments to the comparable sales that reflect the market's reaction to the differences between the subject property and the comparable sales.

10. I verified, from a disinterested source, all information in this report that was provided by parties who have a financial interest in the sale or financing of the subject property.

11. I have knowledge and experience in appraising this type of property in this market area.

12. I am aware of, and have access to, the necessary and appropriate public and private data sources, such as multiple listing services, tax assessment records, public land records and other such data sources for the area in which the property is located.

13. I obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report from reliable sources that I believe to be true and correct.

14. I have taken into consideration the factors that have an impact on value with respect to the subject neighborhood, subject property, and the proximity of the subject property to adverse influences in the development of my opinion of market value. I have noted in this appraisal report any adverse conditions (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) observed during the inspection of the subject property or that I became aware of during the research involved in performing this appraisal. I have considered these adverse conditions in my analysis of the property value, and have reported on the effect of the conditions on the value and marketability of the subject property.

15. I have not knowingly withheld any significant information from this appraisal report and, to the best of my knowledge, all statements and information in this appraisal report are true and correct.

16. I stated in this appraisal report my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the assumptions and limiting conditions in this appraisal report.

17. I have no present or prospective interest in the property that is the subject of this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or opinion of market value in this appraisal report on the race, color, religion, sex, age, marital status, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property or on any other basis prohibited by law.

18. My employment and/or compensation for performing this appraisal or any future or anticipated appraisals was not conditioned on any agreement or understanding, written or otherwise, that I would report (or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of any party, or the attainment of a specific result or occurrence of a specific subsequent event (such as approval of a pending mortgage loan application).

19. I personally prepared all conclusions and opinions about the real estate that were set forth in this appraisal report. If I relied on significant real property appraisal assistance from any individual or individuals in the performance of this appraisal or the preparation of this appraisal report, I have named such individual(s) and disclosed the specific tasks performed in this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in this appraisal report; therefore, any change made to this appraisal is unauthorized and I will take no responsibility for it.

20. I identified the lender/client in this appraisal report who is the individual, organization, or agent for the organization that ordered and will receive this appraisal report.

Freddie Mac Form 70 March 2005 UAD Version 9/2011 Page 5 of 6 Fannie Mae Form 1004 March 2005 Serial# 6E2160D8
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Serial# 6E2160D8
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3429-25
3429-25
Dennis Galassi
Dennis Galassi
High Speed Appraisals
10121 Palo Alto Street
Rancho Cucamonga, CA 91730
626-550-9630
[email protected]
08/11/2025
08/10/2025
AR037515
CA
07/22/2027
22565 Franklin St
Grand Terrace, CA 92313
570,000
Amerimac Appraisal Management
American Financial Network, Inc
10 Pointe Drive, Suite 330, Brea, CA 92821
Form 1004UAD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Uniform Residential Appraisal Report File #

21. The lender/client may disclose or distribute this appraisal report to: the borrower; another lender at the request of the borrower; the mortgagee or its successors and assigns; mortgage insurers; government sponsored enterprises; other secondary market participants; data collection or reporting services; professional appraisal organizations; any department, agency, or instrumentality of the United States; and any state, the District of Columbia, or other jurisdictions; without having to obtain the appraiser's or supervisory appraiser's (if applicable) consent. Such consent must be obtained before this appraisal report may be disclosed or distributed to any other party (including, but not limited to, the public through advertising, public relations, news, sales, or other media).

22. I am aware that any disclosure or distribution of this appraisal report by me or the lender/client may be subject to certain laws and regulations. Further, I am also subject to the provisions of the Uniform Standards of Professional Appraisal Practice that pertain to disclosure or distribution by me.

23. The borrower, another lender at the request of the borrower, the mortgagee or its successors and assigns, mortgage insurers, government sponsored enterprises, and other secondary market participants may rely on this appraisal report as part of any mortgage finance transaction that involves any one or more of these parties.

24. If this appraisal report was transmitted as an "electronic record" containing my "electronic signature," as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature.

25. Any intentional or negligent misrepresentation(s) contained in this appraisal report may result in civil liability and/or criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Section 1001, et seq., or similar state laws.

SUPERVISORY APPRAISER'S CERTIFICATION: The Supervisory Appraiser certifies and agrees that:

1. I directly supervised the appraiser for this appraisal assignment, have read the appraisal report, and agree with the appraiser's analysis, opinions, statements, conclusions, and the appraiser's certification.

2. I accept full responsibility for the contents of this appraisal report including, but not limited to, the appraiser's analysis, opinions, statements, conclusions, and the appraiser's certification.

3. The appraiser identified in this appraisal report is either a sub-contractor or an employee of the supervisory appraiser (or the appraisal firm), is qualified to perform this appraisal, and is acceptable to perform this appraisal under the applicable state law.

4. This appraisal report complies with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal report was prepared.

5. If this appraisal report was transmitted as an "electronic record" containing my "electronic signature," as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature.

APPRAISER
Signature
Name
Company Name
Company Address
Telephone Number
Email Address
Date of Signature and Report
Effective Date of Appraisal
State Certification #
or State License #
or Other (describe) State #
State
Expiration Date of Certification or License

ADDRESS OF PROPERTY APPRAISED
APPRAISED VALUE OF SUBJECT PROPERTY $

LENDER/CLIENT
Name
Company Name
Company Address
Email Address

SUPERVISORY APPRAISER (ONLY IF REQUIRED)
Signature
Name
Company Name
Company Address
Telephone Number
Email Address
Date of Signature
State Certification #
or State License #
State
Expiration Date of Certification or License

SUBJECT PROPERTY
Did not inspect subject property
Did inspect exterior of subject property from street
Date of Inspection
Did inspect interior and exterior of subject property
Date of Inspection

COMPARABLE SALES
Did not inspect exterior of comparable sales from street Did inspect exterior of comparable sales from street
Date of Inspection
Freddie Mac Form 70 March 2005 UAD Version 9/2011 Page 6 of 6 Fannie Mae Form 1004 March 2005 Serial# 6E2160D8
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Serial# 6E2160D8
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3429-25
3429-25
22565 Franklin St
Grand Terrace, CA 92313
N;Res;
Fee Simple
7222 sf
N;Res;
DT1;Ranch
Q4
53 C4
6 3 2.0
1,505
0sf
Average

FAU / CA
Standard
2ga2dw
Patio / Porch
Fireplace(s) None
Pool/Spa None
GuestHouse/Bonus RoomEtc. None
per ParcelQuest/Realist
08/10/2025
12784 Dutch St
Grand Terrace, CA 92313

0.15 miles S
585,000
440.51
MLS# IG25075004;DOM 8
ParcelQuest / DOC# 106965
ArmLth
Conv;11700
s05/25;c04/25
N;Res;
Fee Simple
10350 sf -15,640
N;Res;
DT1;Ranch
Q4
47 0
C4
6 4 2.0 0
1,328 +13,275
0sf
Average

FAU / CA
Standard
2ga2dw
Patio / Porch
None
None
None
-2,365

0.4 4.9 582,635
per ParcelQuest/Realist
08/10/2025
4 5 6
4 5 6
Form 1004UAD.(AC) - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Uniform Residential Appraisal Report File #

SALES C
O
MPA

RISON APPR
O
A

CH SALE HISTO
RY

ANALYSIS / C
O
M
MENTS
FEATURE SUBJECT COMPARABLE SALE # COMPARABLE SALE # COMPARABLE SALE # Address
Proximity to Subject
Sale Price $ $ $ $
Sale Price/Gross Liv. Area $ sq.ft. $ sq.ft. $ sq.ft. $ sq.ft.

Basement & Finished
Rooms Below Grade
Functional Utility
Heating/Cooling
Energy Efficient Items
Garage/Carport
Porch/Patio/Deck
Net Adjustment (Total) + - $ + - $ + - $
Adjusted Sale Price
of Comparables $ $ $
Net Adj. %
Gross Adj. %
Net Adj. %
Gross Adj. %
Net Adj. %
Gross Adj. %
Report the results of the research and analysis of the prior sale or transfer history of the subject property and comparable sales (report additional prior sales on page 3).

ITEM SUBJECT COMPARABLE SALE # COMPARABLE SALE # COMPARABLE SALE # Date of Prior Sale/Transfer
Price of Prior Sale/Transfer
Data Source(s)
Effective Date of Data Source(s)
Analysis of prior sale or transfer history of the subject property and comparable sales Analysis/Comments
Freddie Mac Form 70 March 2005 UAD Version 9/2011 Fannie Mae Form 1004 March 2005 Serial# 6E2160D8
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Page 383 of 451 ends

Serial# 6E2160D8
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3429-25
3429-25
22565 Franklin St
Grand Terrace, CA 92313
N/A
N;Res;
Fee Simple
7222 sf
N;Res;
DT1;Ranch
Q4
53 C4
6 3 2.0
1,505
0sf
Average

FAU / CA
Standard
2ga2dw
Patio / Porch
Fireplace(s) None
Pool/Spa None
GuestHouse/BonusRoom None
per ParcelQuest/Realist
08/10/2025
22554 Pico St
Grand Terrace, CA 92313

0.03 miles SW
575,900
447.13
06/27/2025 (reduced)
Parcelquest / Realist / Lsting Agnt
MLS# IG25126994
No Discount
Under Contract
65 A;FrntsNeighTr; +7,500
Fee Simple
7276 sf
N;Res;
DT1;Ranch
Q4
53 C3 -25,000
5 3 2.0
1,288 +15,200
0sf
Average

FAU / CA
Standard
2ga2dw
Patio / Porch
None
None
None
-2,300

0.4 8.3 573,600
per ParcelQuest/Realist
08/10/2025
12807 Reed Ave
Grand Terrace, CA 92313

0.35 miles SW
589,000
395.30
N/A
Parcelquest / Realist / Lsting Agnt
MLS# IG25165933
No Discount
Pending Sale
4 N;Res;
Fee Simple
7215 sf
N;Res;
DT1;Ranch
Q4
49 C3 -25,000
6 3 2.0
1,490 0
0sf
Average

FAU / CA
Standard
2ga2dw
Patio / Porch
None
None
None
-25,000

4.2 4.2 564,000
per ParcelQuest/Realist
08/10/2025
22361 Raven Way
Grand Terrace, CA 92313

0.34 miles SW
615,000
440.54
N/A
Parcelquest / Realist / Lsting Agnt
MLS# IV25155557
No Discount
Under Contract
29 N;Res;
Fee Simple
8540 sf -6,590
N;Res;
DT1;Ranch
Q4
47 C3 -25,000
5 3 2.0
1,396 +7,600
0sf
Average

FAU / CA
Standard
2ga2dw
Patio / Porch
None
Pool/Spa -30,000
None
-53,990

8.8 11.3 561,010
per ParcelQuest/Realist
08/10/2025
1 2 3
1 2 3
Listing #1 is currently noted as under contract for sale, no adjustment utilized to reflect probable sales price per conversation with listing agent.

Listing #2 is currently noted as a pending sale, no adjustment utilized to reflect probable sales price per conversation with listing agent.

Listing #3 is currently noted as under contract for sale, no adjustment utilized to reflect probable sales price per conversation with listing agent.

Form 1004UAD.(AL) - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Additional Listings File #
FEATURE SUBJECT LISTING # LISTING # LISTING #
Address
Proximity to Subject
List Price $ $ $ $
List Price/Gross Liv. Area $ sq.ft. $ sq.ft. $ sq.ft. $ sq.ft.

Last Price Revision Date
Data Source(s)
Verification Source(s)
VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjust. DESCRIPTION +(-) $ Adjust. DESCRIPTION +(-) $ Adjust.

Sales or Financing
Concessions
Days on Market
Location
Leasehold/Fee Simple
Site
View
Design (Style)
Quality of Construction
Actual Age
Condition
Above Grade Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Room Count
Gross Living Area sq.ft. sq.ft. sq.ft. sq.ft.

Basement & Finished
Rooms Below Grade
Functional Utility
Heating/Cooling
Energy Efficient Items
Garage/Carport
Porch/Patio/Deck
Net Adjustment (Total) + - $ + - $ + - $
Adjusted List Price
of Comparables $ $ $
Net %
Gross %
Net %
Gross %
Net %
Gross %
Report the results of the research and analysis of the prior sale or transfer history of the subject property and comparable sales (report additional prior sales on page 3).

ITEM SUBJECT LISTING # LISTING # LISTING #
Date of Prior Sale/Transfer
Price of Prior Sale/Transfer
Data Source(s)
Effective Date of Data Source(s)
Comments:

March 2005
Serial# 6E2160D8
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Serial# 6E2160D8
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3429-25
3429-25
22565 Franklin St Grand Terrace CA 92313
Boustedt, Robert Lynn & Julie Ann
13 2.17
$580,000
13 0
7 2.33
$575,000
9 0
8 2.67
12 4.5
$582,500
20 $584,500
25 99.5%
ParcelQuest, Realist ,MLS
Market trends indicate property values have remained stable in the subject's neighorhood in the prior 12 months to the effective date of appraisal and demand/supply levels appear to be in balance. The average marketing times of homes listed for sale in the prior 12 months to the effective date of appraisal is under 3 months. Appraiser’s "Inventory Analysis," "Median Sale & List Price, DOM" and other observations in this addendum are based on the data source identified above, which appraiser generally believes to be an acceptable source of market data. However, the appraiser cannot verify all of the information in that data source and cannot guarantee the accuracy of such data or conclusions based thereon. The appraiser also cannot guarantee future market conditions affecting the subject property. Due to configuration of Multiple Listing Service, the appraiser is unable to accurately analyze active listing inventory for time periods of 7-12 months and 4-6 months. The appraiser is also unable to accurately determine median comparable list price and median comparable listings days on market for time periods of 7-12 months and 4-6 months. Therefore the shaded areas for listing inventory time periods of 7-12 months and 4-6 months have been left blank per Fannie Mae guidelines.

Dennis Galassi
High Speed Appraisals
10121 Palo Alto Street, Rancho Cucamonga, CA 91730
AR037515 CA
[email protected]
Form 1004MC2 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Market Conditions Addendum to the Appraisal Report File No.

M
A
R

KET RESEA
R
CH &

ANALYSIS C
ONDO/C

O-OP PR

OJECTS APPR
AISER
The purpose of this addendum is to provide the lender/client with a clear and accurate understanding of the market trends and conditions prevalent in the subject neighborhood. This is a required addendum for all appraisal reports with an effective date on or after April 1, 2009.

Property Address City State ZIP Code
Borrower
Instructions: The appraiser must use the information required on this form as the basis for his/her conclusions, and must provide support for those conclusions, regarding housing trends and overall market conditions as reported in the Neighborhood section of the appraisal report form. The appraiser must fill in all the information to the extent it is available and reliable and must provide analysis as indicated below. If any required data is unavailable or is considered unreliable, the appraiser must provide an explanation. It is recognized that not all data sources will be able to provide data for the shaded areas below; if it is available, however, the appraiser must include the data in the analysis. If data sources provide the required information as an average instead of the median, the appraiser should report the available figure and identify it as an average. Sales and listings must be properties that compete with the subject property, determined by applying the criteria that would be used by a prospective buyer of the subject property. The appraiser must explain any anomalies in the data, such as seasonal markets, new construction, foreclosures, etc.

Inventory Analysis Prior 7–12 Months Prior 4–6 Months Current – 3 Months Overall Trend Median Sale & List Price, DOM, Sale/List % Prior 7–12 Months Prior 4–6 Months Current – 3 Months Total # of Comparable Sales (Settled)
Absorption Rate (Total Sales/Months)
Total # of Comparable Active Listings
Months of Housing Supply (Total Listings/Ab.Rate)
Median Comparable Sale Price
Median Comparable Sales Days on Market
Median Comparable List Price
Median Comparable Listings Days on Market
Median Sale Price as % of List Price
Increasing Stable Declining
Increasing Stable Declining
Declining Stable Increasing
Declining Stable Increasing
Overall Trend
Increasing Stable Declining
Declining Stable Increasing
Increasing Stable Declining
Declining Stable Increasing
Increasing Stable Declining
Seller-(developer, builder, etc.)paid financial assistance prevalent? Yes No Declining Stable Increasing Explain in detail the seller concessions trends for the past 12 months (e.g., seller contributions increased from 3% to 5%, increasing use of buydowns, closing costs, condo fees, options, etc.).

Are foreclosure sales (REO sales) a factor in the market? Yes No If yes, explain (including the trends in listings and sales of foreclosed properties).

Cite data sources for above information.

Summarize the above information as support for your conclusions in the Neighborhood section of the appraisal report form. If you used any additional information, such as an analysis of pending sales and/or expired and withdrawn listings, to formulate your conclusions, provide both an explanation and support for your conclusions.

If the subject is a unit in a condominium or cooperative project , complete the following: Project Name:

Subject Project Data Prior 7–12 Months Prior 4–6 Months Current – 3 Months Overall Trend Total # of Comparable Sales (Settled)
Absorption Rate (Total Sales/Months)
Months of Unit Supply (Total Listings/Ab.Rate)
Total # of Active Comparable Listings
Increasing Stable Declining
Increasing Stable Declining
Declining Stable Increasing
Declining Stable Increasing
Are foreclosure sales (REO sales) a factor in the project? Yes No If yes, indicate the number of REO listings and explain the trends in listings and sales of foreclosed properties.

Summarize the above trends and address the impact on the subject unit and project.

Signature
Appraiser Name
Company Name
Company Address
State License/Certification # State
Email Address
Signature
Supervisory Appraiser Name
Company Name
Company Address
State License/Certification # State
Email Address
Freddie Mac Form 71 March 2009 Page 1 of 1 Fannie Mae Form 1004MC March 2009 Serial# 6E2160D8
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Page 385 of 451 ends

Sales Comparison Comments Continued:

Search parameters for the data entered on the 1004MC form and the top of page 2 of this report were expanded to to gross living area ranging from 1,100 - 1,700 Sq.Ft., lot sizes ranging from 7,000 - 12,000 Sq.Ft., properties built between 1954 - 1989 with search confined within the subject's market boundaries as noted on page 1 of this report.Market boundaries are based on the appraisers familiarity and expertise in this market and have not been expanded just to encompass the comparables selected.

The subject’s market has remained stable over the past 12 months. Median comparable sale prices have shown minimal variation, moving from $580,000 in the 7-12 month period to $575,000 in the 4-6 month period, and increasing slightly to $582,500 in the most recent 0-3 month period. This reflects an overall stable trend in property values.

The absorption rate has increased from 2.17 to 2.67 during the same period, indicating slightly faster sales activity.

However, active listings have risen to 12 in the most recent quarter, increasing the months of housing supply from 0 in prior periods to 4.5 months, suggesting inventory growth.

Median days on market for settled sales have increased from 13 days to 20 days, pointing to a modest slowdown in buyer activity. The median sale price to list price ratio is 99.5%, consistent with market stability. No seller-paid financial assistance was reported as prevalent.

Based on this analysis, market conditions are considered stable, with supply and demand in balance and no significant upward or downward pressure on prices as of the effective date of this appraisal.

Comparable #1 - (22564 Pico Street) Per MLS listing the property was listed for sale on 04/18/2025 for $589,900 and was sold for $580,000 after 20 DOM. Per MLS listing, conversations with listing agent, and exterior inspection by the appraiser the property appears to have been in C3 overall condition at the time of sale (superior to the subject), and has been adjusted accordingly in the sales comparison approach. - Sales comparable #1 fronts directly to Pico Street (moderately travelled 2-lane traffic street) location adjustment due to external obsolescence was utilized in listing comparable grid.

Comparable #2 - (22565 Robin Way) Per MLS listing the property was listed for sale on 04/21/2025 for $565,000 and was sold for $565,000 after 20 DOM. Per MLS listing property features a newly renovated kitchen. Recently updated bathrooms. Per MLS listing, conversations with listing agent, and exterior inspection by the appraiser the property appears to have been in C3 overall condition at the time of sale (superior to the subject), and has been adjusted accordingly in the sales comparison approach.
- Sales comparables #2 is a recent sale. Sales comparable #1 per MLS listing was sold for $565,000 (COE Date of 08/01/2025), sales price confirmed with listing agent. Public records has not been updated to reflect sales price of sales comparable #1. Report has been completed utilizing extraordinary assumption that all information provided to the appraiser by listing agent and MLS listings of sales comparable #1 is accurate, if any items are found to be incorrect the appriaser reserves the right to change the opinion of value in this report..

Comparable #3 - (12794 Reed St) Per MLS listing the property was listed for sale on 03/18/2025 for $569,000 and was sold for $570,000 after 6 DOM. Per MLS listing, conversations with listing agent, and exterior inspection by the appraiser the property appears to have been in C4 overall condition at the time of sale (similar to the subject).

Comparable #4 - (12784 Dutch) Per MLS listing the property was listed for sale on 04/13/2025 for $585,000 and was sold for $585,000 after 8 DOM. Per MLS listing, conversations with listing agent, and exterior inspection by the appraiser the property appears to have been in C4 overall condition at the time of sale (similar to the subject).Per MLS listing, conversations with listing agent, and exterior inspection by the appraiser the property appears to have been in C4 overall condition at the time of sale (similar to the subject).

Listing #1 - (22554 Pico St) Per MLS listing the property was listed for sale on with original listing price of $595,900, the listing price has been reduced to current listing price of $575,900, currently noted as under contract for sale after 65 DOM. Per MLS listing property features new roof, remodeled kitchen and bathrooms. Per MLS listing, conversations with listing agent, and exterior inspection by the appraiser the property appears to be in C3 overall condition at the time of sale (superior to the subject), and has been adjusted accordingly in the sales comparison approach.

Listing #2 - (12807 Reed Ave) Per MLS listing the property was listed for sale on 07/25/2025 for current listing price of $589,000, currently noted as a pending sale after 4 DOM. Per MLS listing, conversations with listing agent, and exterior inspection by the appraiser the property appears to be in C3 overall condition at the time of sale (superior to the subject), and has been adjusted accordingly in the sales comparison approach.

Listing #3 - (22361 Raven Way) Per MLS listing the property was listed for sale on 07/12/2025 for current listing price of $615,000, currently noted as under contract for sale after 29 DOM. Per MLS listing, conversations with listing agent, and exterior inspection by the appraiser the property appears to be in C3 overall condition at the time of sale (superior to the subject), and has been adjusted accordingly in the sales comparison approach.

Differences in living area over 100 square feet were adjusted at $75.00 per square foot.

Differences in site area over 1,000 square feet were adjusted at $5.00 per square foot.

Pools adjusted at $25,000 and spas adjusted at $5,000.

Serial# 6E2160D8
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Supplemental Addendum
Form TADD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE 3429-25
Boustedt, Robert Lynn & Julie Ann
22565 Franklin St
Grand Terrace San Bernardino CA 92313
American Financial Network, Inc
Borrower
Lender/Client
Property Address
City County State Zip Code
File No.

Serial# 6E2160D8
esign.alamode.com/verify

Page 386 of 451 ends

No adjustment has been made for total bedroom count as the livable area adjustment is considered to be inclusive of the differences in size and the utility of different numbers of bedrooms.

Adjustments utilized are based on market analysis including match paired sales analysis within the subject's market within the prior 5 years. Not all adjustments in the Sales Comparison Approach can be directly extracted or supported by the available market data with a high degree of accuracy. Some adjustments have an element of subjectivity and professional judgment which the appraiser has applied based on prior observations of the reactions of typical/knowledgeable buyers' and sellers' in the marketplace.

Please note the appraiser has relied either upon paired sales analysis, market extraction, local builders, realtors, building cost databases, appraiser contributory databases and local MLS to develop adjustments. Regression analysis (RA) tools are available within this marketing area, however they tend to utilize public record data with only a limited number of data points within the analysis. The appraiser would concede that RA can be a powerful tool, however it requires that a high percentage of the potential variables (i.e. GLA, basement, external factors, etc..) must be included within the data sample to have a high degree of confidence. Given the high number of various factors that can affect the marketability of a home, the RA tools available are not currently proficient enough to provide reliable adjustment factors. Historically appraisers have relied upon "market knowledge" and paired sales analysis to determine the contributory value of any given feature of a home. As per recent changes in GSE and lender guidelines, the appraiser must provide transparency to the adjustment process. It is the opinion of the appraiser that field experience is still the primary component in the adjustment factor equation. In an ideal scenario an appraisal assignment features comparable sales that are very similar and that have very few differences. This allows the appraiser to isolate the differences in the price and features, and to assign "market driven" adjustment factors to each comparable to return an adjusted range of sale prices that supports the final reconciliation of estimated value. Unfortunately appraisal assignments rarely feature comparables without substantial differences and the need to adjust for multiple factors. In cases such as this, the appraiser must rely on best practices such as the use of research tools (i.e. MLS, Marshal and Swift) and interviews with realtors and builders. In addition, the completion of other appraisal assignments that allowed for an easier identification of adjustment amounts is also a contributing factor to the "experience" necessary to formulate adjustments. All remaining adjustments are deemed necessary and have been applied accordingly.

The condition rating for the comparables is based upon a driveby inspection of the sales and information obtained through sources such as the local MLS board, personal inspection, and/or conversations with listing agents, where applicable, as to the amenities and condition of the interior of the sales comparables.

All of the sales comparables and the subject, though varying in physical ages, were considered to have similar effective ages due to similar levels of regular maintenance and upgrading, and/or the differences in effective ages are accounted for in the condition adjustments. Therefore, no age adjustments were considered to be necessary or appropriate.

Several of the comparables were found to have different property characteristics in two or more data sources. The local MLS information were used, where applicable, in place of NDCData county assessor's records as they are considered to reflect more up-to-date information.

Verification: The primary verification that the comparables have closed and recorded are public records and/or title companies. A monthly update of these public records is provided by various online services and customer service departments of title companies are utilized. These sources provide (from the public records) the transaction price and current encumbrances. The MLS reports were used as part of the basis for the reporting and adjustment of the comparable sales/listings for determining the condition and amenities for the comparable sales and if there were any indications of a non-arms length transaction, financing concessions, or a distressed sale or other factors that might affect the value and marketability of the comps.

Environmental Addendum: Unless otherwise stated in this report, the existence of hazardous material, which or may not be present on the property was not observed by the appraiser. The appraiser has no knowledge of the existence of such material on the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, ureaformaldehyde foam insulation, or other potentially hazardous materials may effect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss of value. No responsibility is assumed for any conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired.

Appraiser Competency: The undersigned appraiser(s) hereby acknowledges that he/she is full qualified and competent by his/her training, knowledge and experienced to perform this appraisal. If after acceptance of the appraisal assignment and during the course of conducting the appraisal, the appraiser discovers that he/she is not fully competent to perform the appraisal, the appraiser must comply with the Competency Provision of USPAP.

Effective Date, Report Date: The effective date of the appraisal and the date of the report are the same, as shown on the report. Unless otherwise stated, this would be the date of the inspection. The date signed may be after the effective date of the appraisal but is valid for the effective date of the inspection and for that date only.

Purpose and Function of this Report:

1. The PURPOSE of this report is to estimate the "Market Value" as defined in the attached "Statement of Limiting Serial# 6E2160D8
esign.alamode.com/verify
Supplemental Addendum
Form TADD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE 3429-25
Boustedt, Robert Lynn & Julie Ann
22565 Franklin St
Grand Terrace San Bernardino CA 92313
American Financial Network, Inc
Borrower
Lender/Client
Property Address
City County State Zip Code
File No.

Serial# 6E2160D8
esign.alamode.com/verify

Page 387 of 451 ends

Conditions" and in accordance with the FHLBB.

2. The FUNCTION of this report is to assist an underwriter/investor in his/her lending decision. Therefore, this report may not be reproduced or transmitted for any use other than mortgage lending uses.

Property Rights Appraisal:

The property rights appraised are in FEE SIMPLE TITLE unless otherwise noted in the "SUBJECT PROPERTY" section of the appraisal report.

FEE SIMPLE TITLE, which is defined as follows: "AN ABSOLUTE FEE; A FEE WITHOUT LIMITATIONS TO A

PARTICULAR CLASS OF HEIRS OR RESTRICTIONS, BUT SUBJECT TO THE LIMITATIONS OF EMINENT DOMAIN, ESCHEAT, POLICE POWER, AND TAXATION AN INHERITABLE ESTATE." This definition is not intended to exclude the possibility of financing and the interest of tenants rights of occupancy; Therefore it can be thought of as an "ENCUMBERED FEE SIMPLE TITLE."
1 BOYCE, BYRL N., ED. REAL ESTATE APPRAISAL TERMINOLOGY, (CAMBRIDGE; BALLINGER PUBLISHED CO., 1984)
Flood Zone: Flood data reported in this appraisal was obtained from FEMA source maps; and the "NO" designation in the "FEMA FLOOD HAZARD" section of the report does not mean that the property cannot damage from flooding.

STANDARD SCOPE OF WORK DEFINED - Clarification of Assumptions, Limiting Conditions, Certifications and Scope of Work
The URAR appraisal form attached was used to report the results of my (our) appraisal. The scope of work discussed here and within the body of the report, further clarifies what the appraiser(s) did and or did not do in order to develop the appraisal and report the value opinion. The following is noted in order to comply with USPAP requirements and also to define terms as they are used in the appraisal report. This is not intended to be a modification of the certification, but a clarification, which is required to be in compliance with USPAP.

This addenda defines and clarifies the Scope of Work, terms used in the assumptions, limiting conditions, and certifications found on pages 4, 5, and 6 of the URAR and expands the scope of work to document any specific steps taken or not taken by the appraiser(s) based on the complexity of this appraisal assignment and or as a result of a supplementary Scope of Work Agreement and or Engagement Letter as accepted by the appraiser(s) and client identified within the appraisal report.

If no written specific and or supplemental Scope of Work was agreed upon with the client (prior to accepting the assignment and by formal engagement letter) the Scope of Work outlined within the report and here is considered to be representative of what typical users of appraisal services would require and in general, what appraisers would provide as reasonable, acceptable and sufficient for the stated intended user’s needs.

COMPLETE VISUAL INSPECTION (Pg 5, Cert. 2, URAR): Within the report under Scope of Work, item (1), where it states “perform a complete visual inspection of the interior and exterior areas of the subject property” it should be noted that the Appraiser(s) conducted a visual inspection of only the accessible areas of the property.

The appraiser(s) did not test the subject’s mechanical, plumbing and electrical systems as such tests were not a part of the clients stated requirements or within the standard guidelines of FNMA or FHLMC. The appraiser’s observations were limited to viewing those portions and components of the property, which were clearly visible from the ground or floor level.

Any statement in the report regarding the observed condition of the foundation, roof, exterior, interior, floors, mechanical, plumbing, electrical, insulation and all other matters relating to the construction of the subject property is based on a casual observation only and may have been limited further by the placement of personal property, furnishings, etc. so as to preclude observation of the items blocked by same. It did not include an observation of the attic, crawl space or other areas that would not be visible by the typical visitor to the home and or components that are hidden within walls.

Although the report may cite information regarding the adequacy and or condition, it should be clearly understood that these observations are a general guide for property valuation and are not a complete, detailed report on the physical and or operational condition of these items. The appraiser(s) is not an expert in these matters and any opinion stated is advisory based only upon observation. This report is not a home inspection. While others may choose to rely on the report, they should not rely on it to disclose condition and defects. Such knowledge goes beyond the scope of this appraisal and as such, comments on observed conditions given in this report should not be taken as a guarantee that a problem does not exist. The following chart is to assist the intended user in understanding the scope of a complete visual inspection:

Complete Visual Inspection Includes: Complete Visual Inspection Does NOT Include:

List the amenities Testing or activating mechanical systems View readily observable exterior areas Activating appliances View readily observable interior areas Observation of crawl spaces and attics Note quality of materials and workmanship Observation of areas not readily accessible Serial# 6E2160D8
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Supplemental Addendum
Form TADD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE 3429-25
Boustedt, Robert Lynn & Julie Ann
22565 Franklin St
Grand Terrace San Bernardino CA 92313
American Financial Network, Inc
Borrower
Lender/Client
Property Address
City County State Zip Code
File No.

Serial# 6E2160D8
esign.alamode.com/verify

Page 388 of 451 ends

Measure the exterior of the improvements Building Code compliance issues Observe the floor plan and room layout Moving furniture or personal property Assess the functional utility of the property Mold Assessment Note the subject’s conformity to the market area. Removing (or moving) floor coverings Note style / design. Testing or inspection of the well and septic.

Observe the general condition of the improvements Reporting personal property.

Observe a representative sampling of closets, windows, electrical switches, and doors.

Roof Condition report beyond an observation from ground level.

Photograph exterior and view site around the improvements Radon Assessment REPAIRS/DETERIORATION (Pg. 4, Condition 5, URAR) (Pg. 5, Cert. 2, URAR): The terms deficiency and livability have not been defined in the appraisal report. Effort has been made to report ONLY those repair items that, in the appraiser’s opinion, will affect safety, adequacy, and marketability of the property. Deterioration consistent with the age of the home has not been itemized.

COST APPROACH (Pg. 5, Cert. 4, URAR): The cost approach is typically utilized when improvements are new, near new or are of an unusual construction method. Additionally, the cost approach is only considered appropriate when sufficient land; building sites, etc. are available to a potential purchaser so as to make construction of improvements similar to the subject, a viable alternative to purchasing the subject.

In areas where vacant sites (similar to the subject property) are not available to a potential purchaser, use of the cost approach and reliability on the same as a value indicator could be misleading. In cases where the Cost Approach is not required (per USPAP) or deemed necessary to the development of a reliable value opinion, the cost approach has been excluded and such exclusion has been so stated with the body of the report.

If the cost approach was used it represents the “replacement cost estimates,” and is for “valuation purposes only. ” As such, it should not be relied upon for insurance purposes. The definition of “market value” on page 4 of this report is not consistent with “insurable value.” If the cost approach was presented, a cost service such as “Marshall & Swift” (or other similar source) was used to develop the estimate. The site value opinion is based on one of several methods: extraction, allocation, the developmental method or from a review and analysis of sales of similar sites within the market area.

INCOME APPROACH (Pg. 5, Cert. 4, URAR): The income approach is typically utilized when sufficient investor owned properties exist with the subject’s immediate area or neighborhood and when investors regularly acquire such properties that are similarly desirable to the subject for the express purpose of the investment income they provide. While rental properties may exist within any area, their existence alone should not be considered as evidence of a viable rental and investor marketplace. As such, in areas dominated by “owner occupied” units, it may not be appropriate to present or employ the income approach, unless the approach clearly represents the motivations and actions of investors in the marketplace as it relates to the subject property and immediate area.

If the approach is included within the report, it was because sufficient data was found to support conclusions by the appraiser(s) that it was appropriate and meaningful to the analysis and value opinion. If the approach was not included, it was the appraiser’s conclusion that the data was insufficient to conclude that the approach would provide a useful and meaningful conclusion.

EXTENT OF DATA RESEARCH – SALES/LISTINGS (Pg. 5, Cert. 5 and 6, URAR): Sales and listings of the subject property and comparables have been researched, verified, analyzed, and reported in compliance with Certifications 5 and 6 of this URAR. Sales data (including listed, closed, pending and expired listings) of properties that are geographically, physically, functionally and economically similar to the subject property and that are sufficiently recent to reflect current buyer and seller actions were researched and considered. If necessary and applicable, the appraiser(s) also researched data on comparable land and improved sales, income and expense information and construction costs; confirmed comparable sales information (as noted under #7 below); and analyzed the information in applying the approach(es) used.

Depending upon the availability and reliability of various data sources with respect to the subject property, the appraiser(s) used any combination of reasonably available information from city/county records, real estate agents, owner's comments, buyer's description, assessor's records, multiple listing service (MLS) data, brochures, web site listings and visual observation by the appraiser(s) to identify the relevant characteristics of the subject property.

Comparable information was selected based on physical, functional, economic and location characteristics and the data cited in the report was considered to be most similar and relevant to the analysis of subject property. The analysis may include, but is not limited to, the nature of the sale (arm’s-length); impact of reported concessions on the sales; time on the market; original and final list prices.

EXTENT OF INFORMATION VERIFICATION (Pg. 5, Cert. 10, URAR): Representative samples of disinterested sources for information and data verification include but are not limited to County/City online records – Recorder, Treasurer, Zoning, GIS, Online Assessor Property Databases – Sales, Property Characteristics, Personal observation – Condition, Location, Physical attributes, Real Estate Transaction Declaration documents – Sale date, Personal property. In addition, the subject's market area was examined to determine the existing and proposed inventory, as well as demand for and marketability of the property within the subject's classification.

The appraiser(s) was not supplied with a survey of the subject site and did not check the land records for recorded easements and have reported only apparent easements and encroachments. No effort was made to ascertain Serial# 6E2160D8
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Supplemental Addendum
Form TADD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE 3429-25
Boustedt, Robert Lynn & Julie Ann
22565 Franklin St
Grand Terrace San Bernardino CA 92313
American Financial Network, Inc
Borrower
Lender/Client
Property Address
City County State Zip Code
File No.

Serial# 6E2160D8
esign.alamode.com/verify

Page 389 of 451 ends

whether the subject is located within the appropriate setbacks, as dictated by zoning or building regulations.

When and where possible, the applicable information was verified with sources deemed to be reliable and from a disinterested party or corroborated with a 3rd party source and used at face value as is factually accurate. In some cases, the motivations of the parties and other factors (terms, arms-length transactions, etc.) may not have been available.

ADVERSE FACTORS (Pg 4 item 5 and Pg. 5, Cert. 14, URAR): As cited in the “Assumptions & Limiting Conditions” under item #5, is subjective and subject to broad interpretation. Many properties will have some form of physical depreciation, deficiency or livability issues, dependent upon the motivations and standards of the party observing the property. A property may also be impacted to varying degrees by a wide-range of factors internal or external to the property that could be considered “adverse” by someone.

Absent detailed written directives and specific guidelines from the lender/client, the appraiser(s) made a visual inspection of the property and its market environment (as cited elsewhere in the Scope of Work) and noted factors that may impact the marketability and livability to potential buyers based upon the appraiser’s knowledge of the market and or as evidenced by sales of properties with similar or comparable conditions. Such items noted in the report were considered within the valuation approaches that were applied to the analysis.

While some in the market may consider factors such as drug labs, registered sex offenders, criminal activity, interim rehabilitation facilities halfway houses or similar uses as “adverse, ” unless cited within the report, the appraiser(s) has made no attempt to investigate or discover such activities as part of this assignment, unless such factors were readily apparent and obviously impacting the subject property as evidenced by market data. If the intended user has concerns in these areas, it is highly recommended that they secure this information from a reliable source.

THE VALUE OPINION: The value opinion stated in the report is based on my (our) analysis as of the effective date shown in the report. The value opinion considers the productivity, economic and physical conditions of the property only as of the date of value cited. As market conditions change, this value opinion may not be valid in another time period.

The appraiser(s) has attempted to analyze the subject property from the perspective of the hypothetical, "most probable" buyers. The value opinions here in are based upon review and analysis of the market conditions affecting real property value, including land values, cost and depreciation estimates, the attributes of competitive properties, and sales data for geographically, economically and physically similar properties.

The estimate of market value 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, and knowledgeably, and assuming the price is not affected by undue stimulus.

Personal property such as furnishings, equipment or other items that may be included with a sale or transfer of the property were excluded from the value unless such items are necessary for the operations of the property (garage door remotes, pool remotes, etc) and would normally be a part of the mechanical or operational equipment that is considered realty.

DISCLOSURE/DISTRIBUTION (Pg. 6, Cert. 21, URAR) (Pg. 6, Cert. 23, URAR): Regardless of who paid for this assignment, the intended user is only the lender/client or its assignees, The appraisal and report may be inappropriate for use by parties other than the intended user and could place them at risk. Despite the means of possession of the report, this appraisal should not be used or relied on by anyone other than the stated intended user and for the stated/intended purpose.

Certification 23 – Per FNMA - “The Intended User of this appraisal report is the Lender/Client. The Intended Use is to evaluate the property that is the subject of this appraisal for a mortgage finance transaction, subject to the stated Scope of Work, purpose of the appraisal, reporting requirements of this appraisal report form, and Definition of Market Value. No additional Intended Users are identified by the appraiser.” Additional Comments (Highest and Best Use):

The subjects' lot size and location within this platted subdivision would make alternative uses such as commercial, industrial or agricultural physically, legally and economically impermissible and unfeasible. Based on the analysis of the property as presently developed, which is consistent with its Highest and Best Use as a vacant site, its present Highest and Best Use is considered to be a Single Family Residence.

Standards Compliance:

This appraisal has been completed in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP), the Office of the Controller of the Currency's (OCC), Minimum Appraisal Standards, the Board of Governors of the Federal Reserve System and compliance with the laws and directives enacted under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA).

Reasonable Exposure Time:

Exposure time is always presumed to precede the effective date of the appraisal. It is the estimated length of time the property would have been offered on the market, prior to the hypothetical sale, at the appraised value, on the Serial# 6E2160D8
esign.alamode.com/verify
Supplemental Addendum
Form TADD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE 3429-25
Boustedt, Robert Lynn & Julie Ann
22565 Franklin St
Grand Terrace San Bernardino CA 92313
American Financial Network, Inc
Borrower
Lender/Client
Property Address
City County State Zip Code
File No.

Serial# 6E2160D8
esign.alamode.com/verify

Page 390 of 451 ends

ppy , pyp, pp,
effective date of the appraisal. It is a retrospective estimate based on an analysis of past events assuming a competitive and open market. This includes not only adequate, sufficient and reasonable time, but adequate, sufficient and reasonable effort. It is often expressed as a range and is based on the following:

1. Statistical information about days on the market, most commonly obtained from the local Multiple Listing Service.

2. Information gathered through sales verification.

3. Interviews with market participants.

ADDITIONAL COMMENTS (Appraisal Independence): The appraiser certifies that the ordering and delivering of this appraisal report was completed in compliance with the Appraiser Independence Requirements (AIRS) as referenced in Fannie Mae Announcement SEL-2010-14, the Appraisal Independence guidance provided by HUD, including all future announcements and the USPAP standards. The appraiser(s) responsible for preparing the above referenced appraisal report hereby certify that the report was completed and the opinion of value developed in accordance with USPAP standards; and at no time did any employee, director, officer, or agent of the lender or any third party acting as joint venture partner, independent contractor, appraisal company appraisal management company or partnering on behalf of the lender, influence or attempt to influence the development, reporting, result or review of the report.

Serial# 6E2160D8
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Page 391 of 451 ends

Serial# 6E2160D8 Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE esign.alamode.com/verify Location Map
Boustedt, Robert Lynn & Julie Ann
22565 Franklin St
Grand Terrace San Bernardino CA 92313
American Financial Network, Inc
Borrower
Lender/Client
Property Address
City County State Zip Code
Serial# 6E2160D8
esign.alamode.com/verify

Page 392 of 451 ends

Serial# 6E2160D8 Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE esign.alamode.com/verify Satelllite Image of Subject
Boustedt, Robert Lynn & Julie Ann
22565 Franklin St
Grand Terrace San Bernardino CA 92313
American Financial Network, Inc
Borrower
Lender/Client
Property Address
City County State Zip Code
Serial# 6E2160D8
esign.alamode.com/verify

Page 393 of 451 ends

Serial# 6E2160D8 Form MAP.Legal - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE esign.alamode.com/verify Legal Description Map
Boustedt, Robert Lynn & Julie Ann
22565 Franklin St
Grand Terrace San Bernardino CA 92313
American Financial Network, Inc
Borrower
Lender/Client
Property Address
City County State Zip Code
Serial# 6E2160D8
esign.alamode.com/verify

Page 394 of 451 ends

Serial# 6E2160D8 Form MAP.PLAT - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE esign.alamode.com/verify Plat Map
Boustedt, Robert Lynn & Julie Ann
22565 Franklin St
Grand Terrace San Bernardino CA 92313
American Financial Network, Inc

SUBJECT SITE IS HIGHLIGHTED
Borrower
Lender/Client
Property Address
City County State Zip Code
Serial# 6E2160D8
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Page 395 of 451 ends

Serial# 6E2160D8 Form SKT.BLDSKI - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE esign.alamode.com/verify Building Sketch
Boustedt, Robert Lynn & Julie Ann
22565 Franklin St
Grand Terrace San Bernardino CA 92313
American Financial Network, Inc

INTERIOR WALLS UTILIZED TO PROVIDE GENERAL OVERVIEW OF FLOORPLAN AND ARE NOT TO SCALE Borrower
Lender/Client
Property Address
City County State Zip Code
Serial# 6E2160D8
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Page 396 of 451 ends

Serial# 6E2160D8 Form PIC3x5.SR - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE esign.alamode.com/verify Subject Photo Page
Boustedt, Robert Lynn & Julie Ann
22565 Franklin St
Grand Terrace San Bernardino CA 92313
American Financial Network, Inc
Subject Front
Sales Price
Gross Living Area
Total Rooms
Total Bedrooms
Total Bathrooms
Location
View
Site
Quality
Age
22565 Franklin St
1,505
6 3

2.0 N;Res;
N;Res;
7222 sf
Q4
53 Subject Rear
Subject Street
Borrower
Lender/Client
Property Address
City County State Zip Code
Serial# 6E2160D8
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Serial# 6E2160D8 Form PICSIX - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE esign.alamode.com/verify Photograph Addendum
Boustedt, Robert Lynn & Julie Ann
22565 Franklin St
Grand Terrace San Bernardino CA 92313
American Financial Network, Inc

LIVING ROOM KITCHEN

DINING AREA OFFICE

BEDROOM BEDROOM
Borrower
Lender/Client
Property Address
City County State Zip Code
Serial# 6E2160D8
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Serial# 6E2160D8 Form PICSIX2 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE esign.alamode.com/verify Photograph Addendum
Boustedt, Robert Lynn & Julie Ann
22565 Franklin St
Grand Terrace San Bernardino CA 92313
American Financial Network, Inc

BEDROOM BATHROOM

BATHROOM GARAGE INTERIOR

WATER HEATER CARBON MONOXIDE DETECTOR

HALLWAY ADJACENT TO BEDROOMS
Borrower
Lender/Client
Property Address
City County State Zip Code
Serial# 6E2160D8
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SMOKE DETECTOR

HALLWAY ADJACENT TO BEDROOMS

SMOKE DETECTOR - BEDROOM

SMOKE DETECTOR - BEDROOM SMOKE DETECTOR - BEDROOM
Borrower
Lender/Client
Property Address
City County State Zip Code
Serial# 6E2160D8
esign.alamode.com/verify

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Serial# 6E2160D8 Form PIC3x5.CR - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE esign.alamode.com/verify Comparable Photo Page
Boustedt, Robert Lynn & Julie Ann
22565 Franklin St
Grand Terrace San Bernardino CA 92313
American Financial Network, Inc
Comparable 1
Prox. to Subject
Sale Price
Gross Living Area
Total Rooms
Total Bedrooms
Total Bathrooms
Location
View
Site
Quality
Age
22564 Pico St

0.02 miles S
580,000
1,344
6 4

2.0 A;FrntsNeighTr;
N;Res;
7276 sf
Q4
53 Comparable 2
Prox. to Subject
Sale Price
Gross Living Area
Total Rooms
Total Bedrooms
Total Bathrooms
Location
View
Site
Quality
Age
22565 Robin Way

0.26 miles S
565,000
1,136
5 3

2.0 N;Res;
N;Res;
7605 sf
Q4
49 Comparable 3
Prox. to Subject
Sale Price
Gross Living Area
Total Rooms
Total Bedrooms
Total Bathrooms
Location
View
Site
Quality
Age
12794 Reed Ave

0.37 miles SW
570,000
1,378
6 4

2.0 N;Res;
N;Res;
7350 sf
Q4
53 Borrower
Lender/Client
Property Address
City County State Zip Code
Serial# 6E2160D8
esign.alamode.com/verify

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Serial# 6E2160D8 Form PIC3x5.CR - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE esign.alamode.com/verify Comparable Photo Page
Boustedt, Robert Lynn & Julie Ann
22565 Franklin St
Grand Terrace San Bernardino CA 92313
American Financial Network, Inc
Comparable 4
Prox. to Subject
Sale Price
Gross Living Area
Total Rooms
Total Bedrooms
Total Bathrooms
Location
View
Site
Quality
Age
12784 Dutch St

0.15 miles S
585,000
1,328
6 4

2.0 N;Res;
N;Res;
10350 sf
Q4
47 Comparable 5
Prox. to Subject
Sale Price
Gross Living Area
Total Rooms
Total Bedrooms
Total Bathrooms
Location
View
Site
Quality
Age
Comparable 6
Prox. to Subject
Sale Price
Gross Living Area
Total Rooms
Total Bedrooms
Total Bathrooms
Location
View
Site
Quality
Age
Borrower
Lender/Client
Property Address
City County State Zip Code
Serial# 6E2160D8
esign.alamode.com/verify

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Serial# 6E2160D8 Form DLSTRNT.DM#R - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE esign.alamode.com/verify Listing Photo Page
Boustedt, Robert Lynn & Julie Ann
22565 Franklin St
Grand Terrace San Bernardino CA 92313
American Financial Network, Inc
Listing 1
Proximity to Subject
List Price
Days on Market
Gross Living Area
Total Rooms
Total Bedrooms
Total Bathrooms
Age
22554 Pico St

0.03 miles SW
575,900
65 1,288
5 3

2.0 53
Listing 2
Proximity to Subject
List Price
Days on Market
Gross Living Area
Total Rooms
Total Bedrooms
Total Bathrooms
Age
12807 Reed Ave

0.35 miles SW
589,000
4 1,490
6 3

2.0 49
Listing 3
Proximity to Subject
List Price
Days on Market
Gross Living Area
Total Rooms
Total Bedrooms
Total Bathrooms
Age
22361 Raven Way

0.34 miles SW
615,000
29 1,396
5 3

2.0 47
Borrower
Lender/Client
Property Address
City County State Zip Code
Serial# 6E2160D8
esign.alamode.com/verify

Page 403 of 451 ends

Serial# 6E2160D8 Form MAP.PLAT - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE esign.alamode.com/verify Copy of Appraisers License
Boustedt, Robert Lynn & Julie Ann
22565 Franklin St
Grand Terrace San Bernardino CA 92313
American Financial Network, Inc
Borrower
Lender/Client
Property Address
City County State Zip Code
Serial# 6E2160D8
esign.alamode.com/verify

Page 404 of 451 ends

Serial# 6E2160D8 Form MAP.PLAT - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE esign.alamode.com/verify Copy of E & O Insurance
Boustedt, Robert Lynn & Julie Ann
22565 Franklin St
Grand Terrace San Bernardino CA 92313
American Financial Network, Inc
Borrower
Lender/Client
Property Address
City County State Zip Code
Serial# 6E2160D8
esign.alamode.com/verify

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r
RESOLUTION NO. 2012- 01

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE GRAND

TERRACE HOUSING AUTHORITY, ELECTING TO HAVE THE GRAND

TERRACE HOUSING AUTHORITY RETAIN THE HOUSING ASSETS

AND HOUSING FUNCTIONS PREVIOUSLY PERFORMED BY THE

GRAND TERRACE REDEVELOPMENT AGENCY PURSUANT TO
HEALTH AND SAFETY CODE SECTION 34176
WHEREAS, the Grand Terrace Redevelopment Agency (" Agency") is a public body, corporate and politic, organized and existing under the California Community Redevelopment Law ( Health & Safety Code § 33000 et seq.) (" CRL"); and WHEREAS, the City of Grand Terrace is a municipal corporation and a general law city under the California Government Code ("City"); and WHEREAS, the Grand Terrace Housing Authority (" Authority") is a public body, corporate and politic, organized and existing under the California Health and Safety Code sections 34200, et. seq., ( art 2, Chapter 1 of the Health and Safety Code); and WHEREAS, on December 29, 2011, in California Redevelopment Association v.

Matosantos, Case No. S194861, the California Supreme Court upheld ABX1 26, which dissolves all of the redevelopment agencies in California, and struck down ABX1 27, which allowed redevelopment agencies to remain in existence if City opted in to the Voluntary Alternative Redevelopment Program" (" VARP"); and WHEREAS, the City had opted into the VARP by adopting Ordinance No. 259, which by its own terms would be null and void if the VARP was struck down; and WHEREAS, because the Agency was going to remain in existence, the City was not required to decide whether it wished to be a Successor Agency to the Agency or . whether the City or Authority would retain the housing assets and functions previously performed by the Agency to the extent not previously assumed by the Authority; and WHEREAS, in footnote 25 of the Supreme Court's decision, the Court extended the deadline for making the election only to January 13, 2012; and WHEREAS, pursuant to Health & Safety Code Section 34176, the City could either opt to retain the housing assets and functions previously performed by the Grand Terrace Redevelopment Agency or, by default, allow those assets and functions to be assigned to and assumed in accordance with Section 34176; and WHEREAS, the City has previously adopted a resolution to have the City of Grand Terrace assume all rights, powers, assets, liabilities, duties, and obligations associated with the housing activities of the Grand Terrace Redevelopment Agency; and

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WHEREAS, the City has adopted a resolution delegating the rights, powers, assets, liabilities, duties, and obligations associated with housing activities of the Grand Terrace Redevelopment Agency to the Grand Terrace Housing Authority.

NOW THEREFORE, THE GRAND TERRACE HOUSING AUTHORITY DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS:

SECTION 1. The above recitals are true and correct and are adopted as the findings of the Authority Board.

SECTION 2. The Authority Board hereby assumes- all rights, powers, assets, liabilities, duties, and obligations associated with the housing activities of the Grand Terrace Redevelopment Agency in accordance with Health & Safety Code Section 34176.

SECTION 3. The Executive Director, or her designee, is hereby directed to file a copy of this resolution with the County Auditor-Controller.

SECTION 4. The Executive Director is hereby authorized and directed to take such additional actions, and to execute all documents necessary and appropriate, for the City to transfer the housing activities and assets of the Grand Terrace Redevelopment Agency to the Authority in accordance with the requirements of the Health and Safety Code.

SECTION 6. The Executive Director is hereby further authorized and directed to take such other and further actions, and sign such other further documents, as is necessary and proper in order to implement this Resolution in accordance with the requirements of the Health& Safety Code on behalf of the Authority.

SECTION 6. This resolution shall become effective immediately upon its adoption.

SECTION 7. The Authority Secretary shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions..

PASSED APPROVED AND ADOPTED this 30th day of January, 2012 by the following vote:

AYES: Board' 1Iembers McNaboe, Sandoval and Hays; Vice- Chairman Garcia and Chairman Stanckiewitz
NOES: None
ABSENT: None
ABSTAIN: None

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Walt Stanclkewtiz, Chairman
ATTEST:

Tracey R. Writink, Secret
APPROVED AS TO FORM:

Michard L. Adams, Housing Authority Attorney
State of California
County of San Bernardino ss.

State of California
I, Tracey R. Martinez, hereby certify that I am the duly appointed City Clerk of the City of Grand Terrace and the Secretary of the Housing Authority of the City of Grand Terrace and that the foregoing resolution was duly adopted at a special meeting of the City Council and the Housing Authority of the City of Grand Terrace held on the 30th day of January, 2012.

Tracey R. % riWei,-SecretakSr

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AGENDA REPORT
MEETING DATE: September 9, 2025
TITLE: First Reading & Introduction of Acknowledgment and Confirmation of Sewer Service Rates Adopted by the City of Colton (Ordinance No. O-07-24) and Their Prospective Application to Residential and Commercial Accounts in the City of Grand Terrace
PRESENTED BY: Shanita Tillman, Sr. Management Analyst
RECOMMENDATION: ADOPT A RESOLUTION ACKNOWLEDGING AND CONFIRMING THE

SEWER SERVICE RATES ADOPTED BY THE CITY OF COLTON UNDER ORDINANCE NO. O-07-24, AND AUTHORIZING PROSPECTIVE

APPLICATION OF SAID RATES TO RESIDENTIAL AND COMMERCIAL PROPERTIES WITHIN THE CITY OF GRAND TERRACE AS PASSTHROUGH CHARGES. 2030 VISION STATEMENT:

This report supports Goal #1: Ensure Our Fiscal Viability by formally acknowledging sewer service rates in a manner consistent with Proposition 218 requirements, ensuring continued cost recovery for essential utility services.

BACKGROUND:

The City of Grand Terrace does not operate its own municipal sewer utility. Instead, sewer services for both residential and commercial properties are provided through the City of Colton. Burrtec Waste Industries administers residential billing, while commercial sewer accounts are billed directly by the City of Colton.

The last time the City of Grand Terrace formally acknowledged sewer rates was on August 1, 2014, with scheduled increases adopted through July 1, 2017. Since the conclusion of that rate cycle, the City has not taken formal action on sewer rates until the most recent update adopted by the City of Colton.

DISCUSSION:

The City of Colton held a Proposition 218-compliant public hearing on June 18, 2024 to consider revisions to its sewer service rates. Notices were mailed to all affected property owners and directly liable tenants, including those in Grand Terrace, at least 45 days prior to the hearing.

Following the hearing, the Colton City Council adopted Ordinance No. O-07-24 on July 16, 2024, with the first revised rate scheduled to take effect September 1, 2024. Consistent with Colton’s effective date, Burrtec and the City of Colton applied the new rates to Grand Terrace residential and commercial accounts beginning September 1, 2024. However, because the City of Grand Terrace had not yet completed its own acknowledgment process, those charges cannot be considered validly imposed at that time.

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This resolution ensures that the City now formally acknowledges the Colton sewer rates and authorizes their continued application on a prospective basis. Overpayments collected from Grand Terrace accounts since September 1, 2024, will be credited back to affected customers. This action ensures compliance with Proposition 218 while maintaining alignment with Colton’s adopted rate schedule going forward.

ENVIRONMENTAL IMPACT:

This action is not a project under the California Environmental Quality Act (CEQA) and is therefore not subject to environmental review.

FISCAL IMPACT:

There is no fiscal impact to the City’s General Fund. The sewer rates are collected and administered as pass-through charges. Residential billing is conducted by Burrtec Waste Industries, and commercial billing is handled by the City of Colton. Because September 2024 rates were applied prior to Grand Terrace’s formal acknowledgment, payments collected in excess of the valid rate will be credited back to resident accounts. Burrtec has already remitted these amounts to the City of Colton, which will require coordination between Burrtec, Colton, and the City of Grand Terrace to reconcile account balances.

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01247.0001 2022694.2
RESOLUTION NO. 2025-xx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND

TERRACE ADOPTING THE SEWER SERVICE RATES ESTABLISHED

BY THE CITY OF COLTON AND CONFIRMING THEIR APPLICATION TO

GRAND TERRACE PROPERTIES
WHEREAS, the City of Grand Terrace does not operate a municipal sewer utility but receives sewer services for both residential and commercial properties through the City of Colton; and
WHEREAS, the City Council of the City of Grand Terrace entered into an agreement with the City of Colton in 2014 to provide wastewater services to properties within the City of Grand Terrace, including sewer service; and WHEREAS, sewer billing for residential properties within the City of Grand Terrace is administered by Burrtec Waste Industries, Inc., which includes sewer charges as part of its utility billing services; and
WHEREAS, the City of Colton manages and bills sewer accounts directly for commercial and industrial properties within the City of Grand Terrace; and WHEREAS, the City of Colton adopted Ordinance No. O-07-24 on July 16, 2024, establishing updated sewer service charges effective September 1, 2024, and additional annual increases on July 1 of each year through and including July 1, 2028; and WHEREAS, the City of Colton conducted a noticed public hearing on June 18, 2024, following mailed notice of the proposed rate increases mailed to all property owners and tenants directly liable for sewer service fees, not less than 45 days prior to the hearing, in compliance with Proposition 218; and
WHEREAS, the City of Colton applies four customer classes under its sewer rate structure: residential, multifamily, schools, and commercial/industrial; and WHEREAS, the City of Grand Terrace desires to adopt the City of Colton’s July 2024 sewer service rates, and future annual increases, as pass-through charges applicable to properties within the City of Grand Terrace; and WHEREAS, the City of Grand Terrace conducted a noticed public hearing on September 9, 2025, following mailed notice of the proposed rate increases mailed to all property owners and tenants directly liable for sewer service fees, not less than 45 days prior to the hearing, in compliance with Proposition 218; and WHEREAS, at the duly noticed public hearing on September 9, 2025, to consider the proposed sewer service rates, all written protests were received by the City Clerk, and the City Council determined that a majority protest against the proposed rates did not exist; and

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01247.0001 2022694.2
WHEREAS, the City Council of the City of Grand Terrace has determined that sewer service charges do not exceed the reasonable cost of providing service and are proportionally allocated among customer classes based on usage; and WHEREAS, pursuant to California Health & Safety Code § 5471, the City Council is authorized to prescribe and collect sewer service charges by resolution, provided that the charges do not exceed the reasonable cost of providing service and applicable procedural requirements are satisfied; and
WHEREAS, the City Council now desires to formally acknowledge and confirm the application of the City of Colton’s sewer service rates to properties within the City of Grand Terrace for administrative transparency and consistency, having complied with all procedural requirements under Proposition 218 to ensure lawful and consistent administration of these charges.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The facts set forth in the recitals in this Resolution are true and correct and are incorporated herein by this reference.

SECTION 2. The City Council held a duly noticed Proposition 218 protest hearing on September 9, 2025, during which all written protests were received by the City Clerk.

The City Council determined that a majority protest did not exist. Accordingly, the proposed sewer service rates may be adopted pursuant to Proposition 218.

SECTION 3. The City Council has evaluated and hereby acknowledges and confirms the sewer service fees adopted by the City of Colton under Ordinance No. O07-24, effective September 1, 2024, with future rate adjustments scheduled annually through July 1, 2028, as applicable to residential and commercial properties in the City of Grand Terrace. The rates shall be applied as pass-through charges consistent with billing practices currently in place through Burrtec Waste Industries, Inc. and the City of Colton.

The rates are as follows:

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01247.0001 2022694.2
SECTION 4. The City Manager, or their designee, is hereby authorized to coordinate with Burrtec Waste Industries, Inc. and the City of Colton to ensure implementation of the updated sewer rates in accordance with the adopted rate structure.

SECTION 5. This resolution shall become effective immediately upon its adoption.

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01247.0001 2022694.2
PASSED, APPROVED and ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 9th day of September 2025. __________________________
Bill Hussey
Mayor
ATTEST:
________________________________
Daysi Alcocer
City Clerk
APPROVED AS TO FORM:
________________________________
________________________________
Adrian R. Guerra
City Attorney

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ORDINANCE NO. 0-07-24
1 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
2 COLTON, CALIFORNIA ADOPTING RATE INCREASES TO CITY OF

COLTON SEWER SERVICE FEES AND TAKING OTHER ACTIONS
3 RELATED THERETO
4 WHEREAS, the City of Colton( the " City") operates a municipal sewer system and sewer treatment plant, and treats and disposes of the wastewater from properties located within the City 5 and certain unincorporated areas ofthe County; and
6 WHEREAS, the City undertook an evaluation of the capital infrastructure needs, programs, and operations and maintenance costs of its sewer system; and 7 8
WHEREAS, based on this evaluation, the City Council has determined to increase the rates for its sewer service charges effective September 1, 2024; and 9 WHEREAS, future rate increases, beginning each July 1 thereafter, through and 10 including July 1, 2028, will be necessary for all of the City' s sewer customers to enable the City to recover projected costs of providing sewer services and to ensure that it can safely treat and 11 dispose of sewage, maintain the operational and financial stability of the utility, and avoid operational deficits and depletion ofreserves; and
12 WHEREAS, the rates for the sewer service fees are comprised of four customer classes—

13. ( 1) residential (which includes single-family residences, mobile homes, and churches); ( 2) multi14 family (which includes apaitinent units and condominiums); ( 3) schools; and (4) commercial and industrial; and
15 WHEREAS, the rates for the monthly sewer service fees for residential and multi-family 16 properties are determined on an equivalent dwelling unit( EDU) basis; and 17 WHEREAS, the rates for schools are determined on the basis of the estimated sewer flow generated at an identified school in terms of the number of students attending ( in hundreds); and 18 19
WHEREAS, the rates for commercial and industrial customers are determined on the basis of the estimated sewer flow a property contributes to the sewer system ( using monthly 20 metered water use data) and the loads that a customer' s sewage discharges put on the system based on biochemical oxygen demand and total suspended solids); and 21 WHEREAS, the rates are calculated to proportionately allocate capital replacement, 22 operations, maintenance, treatment, and disposal costs to each customer class; and 23 WHEREAS, in accordance with the provisions of Article XIII D, section 6 of the 24 California Constitution, the City mailed out notices ofthe proposed sewer rate increases and such notices were provided to all property owners and tenants directly liable for sewer service fees 25 within the City not less than 45 days prior to the public hearing on the proposed establishment of rates and fees as set forth herein; and
26 27 WHEREAS, the City Council conducted a public hearing on June 18, 2024, in order to receive oral and written testimony regarding this Ordinance and the proposed rate increases. Said 28 public hearing date and time was not less than 45 days after the mailing of the notice; and

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WHEREAS, at the conclusion of the public hearing, written protests against the proposed 1 rate increases were not presented by a majority of the record owners of parcels upon which the sewer service fees are imposed and tenants directly responsible for the payment of sewer service 2 fees; and
3 WHEREAS, it is deemed to be in the best interests of the City to adopt the rate increases due to the fiscal impacts referenced above.
4 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COLTON, 5 CALIFORNIA DOES ORDAIN AS FOLLOWS:
6 Section 1. All of the foregoing Recitals are true and correct and the City Council so 7 finds and determines. The Recitals set forth above are incorporated herein, are made findings and determinations of the City Council, and are made an operative part of this Ordinance. 8 Section 2. The City Council hereby finds and determines that written protests against 9 the proposed rate increases were not presented by a majority ofthe record owners of parcels upon which sewer service fees are imposed and tenants directly responsible for the payment of sewer 10 service fees. The City Council therefore finds and determines that a majority protest does not 11 exist and it is authorized to impose the rate increases as set forth herein. 12 Section 3. The City Council has evaluated and hereby approves the rates for sewer service fees in the amounts and on the effective dates set forth in the tables below. 13 RESIDENTIAL AND MULTI-FAMILY CUSTOMERS
14 MONTHLY SEWER RATES ($/EDU)
Rates and Effective Dates
15 Customer Class 7/ 1/ 24 7/ 1/ 25 7/ 1/ 26 7/ 1/ 27 7/ 1/ 28 16 Residential' 45. 38 54.46 59.90 64.70 69. 87
Multi-Family2 38. 98 46.78 51. 45 55. 57 60.02
17 1. Includes single-family residences, homes/ mobile homes, and churches.

2. Includes apartment units and condominiums.
18 19 SCHOOLS
MONTHLY SEWER RATES ($/100 Students)
20 Rates and Effective Dates
21 Customer Class 7/ 1/ 24 ' 7/ 1/ 25 7/ 1/ 26 7/ 1/ 27 7/ 1/ 28 Schools 101. 40 121. 68 133. 84 144. 55 156. 12
22 23 COMMERCIAL/INDUSTRIAL CUSTOMERS
24 MONTHLY SEWER RATES ($/HCF)'
Rates and Effective Dates
25 Customer Class 7/ 1/ 24 7/ 1/ 25 7/ 1/ 26 7/ 1/ 27 7/ 1/ 28 Commercial/Industrial
26 Low Strength 2.36 2. 83 3. 11 3. 36 3. 63
27 Medium Strength 2.79 3. 34 3. 68 3. 97 4.29
High Strength 6.09 7. 30 8. 04 8. 68 9. 37
28 Municipal Moved to Commercial (Med)

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SIGNIFICANT COMMERCIAL/INDUSTRIAL CUSTOMERS
1 MONTHLY SEWER RATES ($/HCF) 1
Customer Class Rates and Effective Dates
2 Special Commercial 7/ 1/ 24 7/ 1/ 25 7/ 1/ 26 7/ 1/ 27 7/ 1/ 28 3 Emerald Moved to Commercial (Med)
Special Med Consumption
4 A-Z Bus Sales Moved to Commercial ( Low)
Inland Logistics, LLC Moved to Commercial (Low)
5 Nichols Egg Ranch Moved to Commercial (Low)
6 Rancho Coin Laundry Moved to Commercial (Low)
Wood Springs Hotel Moved to Commercial (Low)
7 Special High Consumption
Rise Baking Moved to Commercial (High)
8 Arrowhead Regional Med Moved to Commercial (Med)
C.R. England, Inc Moved to Commercial (High)
9 10 1. HCF means one hundred cubic feet.
11 Section 4. The City Council finds that the revenues derived from the sewer service charges established by this Ordinance: ( 1) do not exceed the funds required to provide sewer 12 service; ( 2) shall not be used for any other purpose than that for which the rates and charges are imposed; ( 3) do not exceed the proportional cost of the service attributable to each customer; ( 4) 13 provide services which are immediately available to the customer; and ( 5) are not levied for 14 general governmental purposes.
15 Section 5. The City Council further finds and determines that the administration, operation, maintenance and improvements of the City sewer system, which are to be funded by 16 the increased sewer service rates set forth herein, are necessary to maintain service within the City' s existing service area and are not in excess of the reasonable costs of providing the sewer 17 services.
18 Section 6. The City Manager is authorized and directed to take all actions necessary to implement the authorized rates as set forth herein.
19 20
Section 7. In accordance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines, City staff has determined that the increases in sewer service charges are 21 not a project subject to CEQA pursuant to Section 15378( b)( 4) because the charges constitute the creation of a funding mechanism or other governmental fiscal activity which does not involve any 22 commitment to any specific project which may result in a potentially significant physical impact on the environment. In addition, even ifthe action is considered a" project" subject to CEQA, it is 23 exempt under Section 15273 of the CEQA Guidelines and Public Resources Code section 24 21080(b)( 8) because the increased charges are for the purpose of meeting operational and maintenance expenses of the aforementioned services. The documents and materials that 25 constitute the record of proceedings on which these findings have been based are located at 650 N La Cadena Drive, Colton, CA 92324. The custodian for these records is the City Clerk. 26 Section 8. All ordinances, resolutions, or administrative actions by the City Council, 27 or parts thereof, that are inconsistent with any provision of this Ordinance are hereby superseded 28 only to the extent of such inconsistency.

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Section 9. Within 15 days after adoption of this Ordinance, a summary of the 1 Ordinance shall be published with the names ofthose members of the City Council voting for and against this Ordinance and a certified copy ofthe full text of this Ordinance, along with the names 2 of those City Council members voting for and against this Ordinance, shall be posted in the office of the City Clerk.
3 4
Section 10. If any section, subsection, clause or phrase in this Ordinance is for any reason held invalid, the validity of the remainder of this Ordinance shall not be affected thereby. 5 The City Council hereby declares that it would have passed this Ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that one or more sections, 6 subsections, sentences, clauses or phrases or the application thereof be held invalid. 7 Section 11. This Ordinance shall take effect thirty (30) days after its final passage. 8 9
PASSED, APPROVED, AND ADOPTED THIS 16th DAY OF JULY 2024. 10 11
12 16
13 ruip. NAVARRO
Mayor
14 15
16 ATTEST:
17 18
19 STEPHANIE M. VA GAS
20 Deputy City Clerk
21 22 APPROVED AS TO FORM:
23 24
25 Best Best : P
26 City Attorney
27 28

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1 STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO ss.
2 CITY OF COLTON
3 4 CERTIFICATION
5 6
I, STEPHANIE M. VARGAS, Deputy City Clerk for the City of Colton, California, do hereby certify that the foregoing is a full, true and correct copy of ORDINANCE NO. 0- 7 07-24, duly adopted by the City Council of said City, and approved by the Mayor of said City, 8 at its Regular Meeting of said City Council held on the 16th day of July 2024, and that it was 9 adopted by the following vote, to wit:
10 11 AYES: COUNCILMEMBER Toro, Gonzalez, Echevarria, Mayor Navarro 12 NOES: COUNCILMEMBER Chastain
13 ABSTAIN: COUNCILMEMBER None
14 ABSENT: COUNCILMEMBER None
15 16 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal 17 ofthe City of Colton, California, this day of
18 19
20 STEPHANIE M. VARGAS
21 Deputy City Clerk
City of Colton
22 23 (
SEAL)
24 25
26 27
28

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Notice of Public Hearing
City of Grand Terrace – Proposed Sewer Rate Adjustment
The City of Grand Terrace will hold a public hearing on Tuesday, September 9, 2025, at 6:00 p.m. in the City
Council Chambers, 22795 Barton Road, to consider
the formal adoption of updated sewer service rates.

These rates are direct pass-through costs from the
City of Colton, which operates the sewer system
serving Grand Terrace. Colton adopted the rates with
annual increases through July 1, 2028. The updated
rates have already been applied to customer accounts
as of September 1, 2024, and will be formally adopted
retroactively to align with the implementation date.

The charges are based on a per EDU (Equivalent
Dwelling Unit) rate structure as adopted by the City of Colton. The City of Grand Terrace is now required to
adopt these rates in accordance with Proposition 218.

Written protests must be received by the City Clerk
before the close of the public hearing.

For questions about sewer rate costs, contact the City
of Colton at (909) 370-5099. For general questions,
contact the City of Grand Terrace at (909) 954-5200.

RESIDENTIAL AND MULTI-FAMILY CUSTOMERS MONTHLY SEWER RATES ($/EDU) Rates and Effective Dates
Customer Class 7/1/24 7/1/25 7/1/26 7/1/27 7/1/28
Residential1 $45.38 $54.46 $59.90 $64.70 $69.87
Multi-Family2 $38.98 $46.78 $51.45 $55.57 $60.02

1. Includes single-family residences, homes/mobile homes, and churches.

2. Includes apartment units and condominiums.

COMMERCIAL/INDUSTRIAL CUSTOMERS MONTHLY SEWER RATES ($/HCF)1 Rates and Effective Dates
Customer Class
Commercial/
Industrial
7/1/24 7/1/25 7/1/26 7/1/27 7/1/28
Low Strength $2.36 $2.83 $3.11 $3.36 $3.63
Medium Strength $2.79 $3.34 $3.68 $3.97 $4.29
High Strength $6.09 $7.30 $8.04 $8.68 $9.37
Municipal Moved to Commercial (Med)
SCHOOLS MONTHLY SEWER RATES ($/100 STUDENTS)
Rates and Effective Dates
Customer Class 7/1/24 7/1/25 7/1/26 7/1/27 7/1/28
Schools $101.40 $121.68 $133.84 $144.55 $156.12

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Burrtec Waste Industries, Inc.
5455 Industrial Parkway
San Bernardino, CA 92407

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AGENDA REPORT
MEETING DATE: September 9, 2025
TITLE: First Reading & Introduction of the 2025 California Building Codes PRESENTED BY: Patrick Johnson, Building Official
RECOMMENDATION: THAT THE CITY COUNCIL CONDUCT A FIRST READING AND INTRODUCTION TO CONSIDER ADOPTION OF THE 2025 CALIFORNIA BUILDING CODES WITH AMENDMENTS TO CHAPTER 15.04, 15.08,

15.09, 15.10, 15.12, 15.16, 15.17, 15.18, 15.19, 15.20, 15.21, 15.22, AND ADDING CHAPTER 15.11 OF THE MUNICIPAL CODE. ONLY EDITORIAL

CHANGES DUE TO CODE YEARS AND SECTIONS THAT HAVE MOVED
ARE BEING AMENDED. THE ADDITION OF CHAPTER 15.11 IS DUE TO CALIFORNIA CODE OF REGULATIONS ADOPTING TITLE 24, PART 7;

CALIFORNIA WILDLAND-URBAN INTERFACE CODE
2030 VISION STATEMENT:

This staff report supports Goal #3, Promote Economic Development BACKGROUND:

The State’s Health and Safety Code, Section 17950, mandates the California Building Standards Commission adopt and publish the California Codes, Title 24, known as the California Code of Regulations.

Every three years, the codes are published to incorporate all code changes accepted by a majority vote of members at the annual code development meetings. As a result, the new codes will become effective statewide on January 1, 2026. (See below the Bulletin 25-01 from the Building Standards Commission). Each jurisdiction in the State is mandated to adopt the California Code of Regulations, Title 24, and make amendments to the codes that are reasonably necessary because of local climatic, geological, or topographical conditions.

DISCUSSION:

The following codes are mandated by the State of California Building Standards, Commission Information Bulletin 25-01, for local adoption by January 1, 2026, are:
2025 California Building Code, Volumes 1 and 2
2025 California Fire Code
2025 California Existing Building Code
2025 California Historical Code
2025 California Energy Code
2025 Administrative Code
2025 California Referenced Standards Code
2025 California Residential Code
2025 California Green Building Standards Code
2025 California Mechanical Code

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2025 California Electrical Code
2025 California Plumbing Code
2025 California Wildland-Urban Interface Code
2024 International Property Maintenance Code
1997 Uniform Code for Abatement of Dangerous Buildings
The State has established the 2024 Editions of the International Codes as the basis for the 2025 California Codes. Likewise, the 2024 Editions of the Uniform Mechanical and Plumbing Codes were developed by the International Association of Plumbing and Mechanical Officials as the basis for the 2025 California Plumbing and Mechanical Codes. The 2023 Edition of the National Electrical Code, developed by the National Fire Protection Association, is the basis of the corresponding 2025 Edition of the California Electrical Code.

The California Residential Code (CRC) will address the structural and life-safety aspects of one- and two-family dwellings and townhouses not more than three stories. Electrical, plumbing, and mechanical conditions will still be addressed by the appropriate California Code Books.

The California Green Building Standards Code addresses such conditions as site development, water savings, recycling, and material selection. In addition, issues such as moisture control, interior and exterior air quality and compliance with California Title 24 requirements as addressed. Environmental quality issues of concern involve the use of materials that produce volatile organic compounds, such as composite wood products, paints, adhesives, and carpets.

The proposed amendments are added to the existing chapters of the Grand Terrace Municipal Code Title 15, by adding the 2025, California Code of Regulations.

The California Wildland-Urban Interface Code is required to be adopted by all jurisdictions within the State of California and will only be enforced for areas that are in fire hazard severity zones as identified by the state fire marshal severity hazard zone maps. The intent of the California WildlandUrban Interface Code is to be able to construct new buildings and additions that are located in fire zones with fire-resistant materials such as noncombustible siding and overhangs, tempered or 20- minute rated glazing (windows), ember-resistive attic and crawl space vents as well as provide defensible spaces around the structure. The majority of the code requirements that are set forth in the California Wildland-Urban Interface Code are carried over from Chapter 7A of the California Building Code and Section R337 of the California Residential Code, which had previously been adopted.

ENVIRONMENTAL IMPACT:

None.

FISCAL IMPACT:

The City of Grand Terrace will purchase one (1) hard copy of the California Building Code where one (1) copy will be required to be available to the public. The estimated cost for one (1) complete set is $1,544 and will be coded to General Fund account 10-172-210-000-000.

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01247.0001 2037244.2
ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE AMENDING CHAPTERS 15.04 (GENERAL PROVISIONS
FOR BUILDING CODE), 15.08 (BUILDING CODE), 15.09 (EXISTING BUILDING CODE), 15.10 (RESIDENTIAL CODE), 15.12 (ELECTRICAL CODE), 15.16 (PLUMBING CODE), 15.17 (GREEN BUILDING
STANDARDS, 15.18 (CALIFORNIA FIRE CODE), 15.19 (HISTORIC BUILDING CODE), 15.20 (MECHANICAL CODE), 15.21 (REFERENCE STANDARDS), AND 15.22 (PROPERTY MAINTENANCE CODE) OF
TITLE 15 (BUILDINGS AND CONSTRUCTION) OF THE GRAND
TERRACE MUNICIPAL CODE, AND ADDING CHAPTER 15.11
(WILDLAND-URBAN INTERFACE CODE) OF TITLE 15 (BUILDINGS

AND CONSTRUCTION), OF THE GRAND TERRACE MUNICIPAL CODE, ADOPTING THE 2025 CALIFORNIA BUILDING CODE VOLUMES 1 AND 2, 2025 CALIFORNIA FIRE CODE, 2025 CALIFORNIA EXISTING
BUILDING CODE, 2025 CALIFORNIA HISTORIC CODE, 2025
CALIFORNIA ENERGY CODE, 2025 CALIFORNIA ADMINISTRATIVE
CODE, 2025 CALIFORNIA REFERENCED STANDARD CODE, 2025
CALIFORNIA RESIDENTIAL CODE, 2025 CALIFORNIA GREEN
BUILDING STANDARDS CODE, 2025 CALIFORNIA WILDLAND-URBAN INTERFACE CODE, 2025 CALIFORNIA ELECTRICAL CODE, 2025
CALIFORNIA PLUMBING CODE, 2025 CALIFORNIA MECHANICAL
CODE, 2024 INTERNATIONAL PROPERTY MAINTENANCE CODE,
AND 1997 UNIFORM CODE FOR ABATEMENT OF DANGEROUS

BUILDINGS
WHEREAS, the California Health and Safety Code Section 17950 mandates that the California Building Standards Commission adopt and publish the California Building Codes, known as Title 24 of the California Code of Regulations; and WHEREAS, the California Building Standards Commission publishes updated codes every three years to incorporate changes approved through the code development process, with the 2025 California Building Codes becoming effective statewide on January 1, 2026; and
WHEREAS, all jurisdictions in the State of California are required to adopt the updated California Building Codes, including any amendments reasonably necessary to address local climatic, geological, or topographical conditions; and WHEREAS, the 2025 California Building Codes incorporate updated editions of various codes including but not limited to the California Building Code, Fire Code, Residential Code, Green Building Standards Code, Mechanical Code, Electrical Code, Plumbing Code, and the California Wildland-Urban Interface Code; and

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01247.0001 2037244.2
WHEREAS, the City of Grand Terrace desires to adopt the 2025 California Building Codes with amendments to Chapters 15.04, 15.08, 15.09, 15.10, 15.12, 15.16,

15.17, 15.18, 15.19, 15.20, 15.21, and 15.22 of the Municipal Code, and to add Chapter

15.11 addressing the Wildland-Urban Interface Code; and WHEREAS, the California Wildland-Urban Interface Code is required to be adopted by all jurisdictions within the State of California and applies to fire hazard severity zones as identified by the State Fire Marshal, with the purpose of establishing construction standards for fire-resistant materials and defensible space around structures; and
WHEREAS, it is in the best interest of the public health, safety, and welfare of the residents of the City of Grand Terrace to adopt the 2025 California Building Codes and related amendments.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES ORDAIN AS FOLLOWS:

SECTION 1. The facts set forth in the recitals in this Ordinance are true and correct and incorporated herein by this reference.

SECTION 2. Chapters 15.04, 15.08, 15.09, 15.10, 15.12, 15.16, 15.17, 15.18,

15.19, 15.20, 15.21, 15.22 of Title 15 (Buildings and Construction) of the Grand Terrace Municipal Code are hereby amended as shown below. The following edits are limited to editorial changes resulting from reorganization of the applicable building codes. Only the portions of the municipal code sections that are being amended are shown.

Note: Red text (with underlining and italics) indicates added language; strikethrough text indicates deletions. The excerpts below are not full municipal code sections, but only the specific language being amended.

Title 15 - BUILDINGS AND CONSTRUCTION
Chapter 15.04 - GENERAL PROVISIONS FOR BUILDING UNIFORM CODES

15.04.040 - Permit fees.

Any and all references to fees in any of the building uniform codes adopted in this Title are deleted; such fees shall be set adopted by resolution of the City Council, which may be amended from time to time.

15.04.060 - Enforcement—Appeals.

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01247.0001 2037244.2
It shall be the duty of the Director of Building and Safety to enforce the provisions of the California Uniform Building Code, California Residential Code, California National Electrical Code, California Uniform Mechanical Code, California Uniform Plumbing Code, California Fire Code, California Energy Code, California Administrative Code, California Referenced Standards Code, California Green Building Standards Code, California Wildland-Urban Interface Code, and International Property Maintenance Code Uniform Solar Energy Code, respectively, and to determine the intent and meaning thereof. Any determination or decision, made by the Director of Building and Safety, which is in dispute, is subject to review and final decision by the City Council or by a board of appeals as established by the City pursuant to Section 113 of the California Building Code, as adopted and amended by the City.by Section 204 of the Uniform Building Code, 1979 Edition.

15.08.010 - Adoption.

For the purpose of prescribing regulations for erecting, construction, enlargement, alteration, repair, improving, removal, conversion, demolition, occupancy, equipment use, height, and area of buildings and structures, the following construction codes subject to the modifications set forth in this Chapter, are hereby adopted by reference: the 2025 2022 California Building Code, Volumes 1 and 2, including all appendixes in its entirety Appendix Chapter "C", "F", "G", "I", "J", "L", "N" and "O" based on the 2024 2021 International Building Code as published by the International Code Council. One copy of all the above codes and standards therefore are on file in the Office of the Building Department City Clerk and are made available for public inspection.

15.08.020 - Fences and high fire hazard severity zones.

The changes set forth herein are made to the 2022 Edition of the California Building Code Volume 1 & 2 as published by the International Code Council.

B. The requirements of Chapter 7A shall apply throughout the City's designated High Fire Hazard Severity Zones as designated by CAL FIRE's Fire Hazard Severity Zone Map and City Council.

15.08.060 - Amendment to Section 903.2.1.1 of the California Building Code.