Agenda packet — Grand Terrace City Council, September 23, 2025

Tuesday, September 23, 2025 1

CITY OF GRAND TERRACE
City Council and Grand Terrace Housing
Authority
AGENDA ● September 23, 2025
Council Chambers Regular Meeting 6:00 PM
Grand Terrace Civic Center ● 22795 Barton Road

COMMENTS FROM THE PUBLIC
The public is encouraged to address the City Council on any matter posted on the agenda or on any other matter within its jurisdiction. If you wish to address the City Council, please complete a Request to Speak card located at the front entrance and provide it to the City Clerk. Speakers will be called upon by the Mayor at the appropriate time and each person is allowed three (3) minutes speaking time.

The City wants you to know that you can also submit your comments by email to [email protected]. To give the City Clerk adequate time to print out your comments for consideration at the meeting, please submit your written comments prior to 5:00 p.m.; or if you are unable to email, please call the City Clerk’s Office at (909) 954-5207 by 5:00 p.m.

If you wish to have your comments read to the City Council during the appropriate Public Comment period, please indicate in the Subject Line “FOR PUBLIC COMMENT” and list the item number you wish to comment on. Comments that you want read to the City Council will be subject to the three (3) minute time limitation (approximately 350 words).

Pursuant to the provisions of the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The City Council may direct staff to investigate and/or schedule certain matters for consideration at a future City Council meeting.

PLEASE NOTE: Copies of staff reports and supporting documentation pertaining to each item on this agenda are available for public viewing and inspection at City Hall, 1st Floor Lobby Area and 2nd Floor Reception Area during regular business hours and on the City’s website www.grandterraceca.gov. For further information regarding agenda items, please contact the office of the City Clerk at (909) 954-5207, or via e-mail at [email protected].

Any documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection in the City Clerk’s office at City Hall located at 22795 Barton Road during normal business hours. In addition, such documents will be posted on the City’s website at www.grandterrace-ca.gov.

AMERICANS WITH DISABILITIES ACT
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office, (909) 954-5207 at least 48 hours prior to the advertised starting time of the meeting. This will enable the City to make reasonable arrangements to ensure accessibility to this meeting. Later requests will be accommodated to the extent feasible [28 CFR 34.102.104 ADA Title II].

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Tuesday, September 23, 2025 2
Call to Order
Invocation
Pledge of Allegiance
AB 2449 Disclosures
Remote participation by a member of the legislative body for just cause or emergency circumstances.

Roll Call
A. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA B. PUBLIC COMMENT
This is the opportunity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law, the City Council may not discuss or act on any item not on the agenda, but may briefly respond to statements made or ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting.

C. SPECIAL PRESENTATIONS - NONE
D. CONSENT CALENDAR
The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon by the City Council at one time without discussion. Any Council Member, Staff Member, or Citizen may request removal of an item from the Consent calendar for discussion.
1) Waive Full Reading of, and Direct the City Attorney to Read by Title only for, Ordinances on the Agenda
2) Approval of Minutes - Regular Meeting - September 9, 2025 3) Measure I Five Year Capital Improvement Plan for FY 2026-2030 DEPARTMENT: Public Works
RECOMMENDATION: APPROVE THE MEASURE I FIVE-YEAR (FY 2025/26–2029/30) CAPITAL IMPROVEMENT PLAN and; ADOPT RESOLUTION NO. 2025-XX

APPROVING THE MEASURE I FIVE-YEAR CAPITAL IMPROVEMENT PLAN AND

EXPENDITURE STRATEGY
E. PUBLIC HEARINGS - NONE
F. UNFINISHED BUSINESS - NONE

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Tuesday, September 23, 2025 3
G. NEW BUSINESS
4) Future Agenda Item Request — Consideration of Ordinance to Impose Fees for Excessive Non-False Alarm 911 Responses
RECOMMENDATION: THAT THE CITY COUNCIL NOT ADOPT AN ORDINANCE

IMPOSING FINES OR FEES ON PROPERTY OWNERS OR BUSINESSES FOR “EXCESSIVE” BUT LEGITIMATE 911 CALLS. INSTEAD, STAFF RECOMMENDS

ADDRESSING CHRONIC PROBLEM LOCATIONS THROUGH BUSINESS LICENSING /

CONDITIONAL USE PERMIT (CUP) CONDITIONS AND GOOD NEIGHBOR AGREEMENTS, AND THE SAN BERNARDINO COUNTY SHERIFFS DEPT. CRIME

FREE HOUSING PROGRAM
DEPARTMENT: City Manager
H. FUTURE AGENDA ITEMS
At this time, the City Council may propose items for discussion and/or action at a future duly agendized City Council meeting. A consensus of a majority of the quorum is required to place an item on a future agenda.

I. CITY COUNCIL COMMUNICATIONS
Council Member Matt Brown
Council Member Jeff Allen
Council Member Doug Wilson
Mayor Pro Tem Michelle Sabino
Mayor Bill Hussey
J. CITY MANAGER COMMUNICATIONS
K. CLOSED SESSION
CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code Section 54956.9.

Number of Cases: One potential case.

PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Section 54957(b)(1) Title: City Manager

PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Section 54957(b)(1) Title: City Attorney
L. ADJOURN
The next Regular City Council Meeting will be held on October 14, 2025, at 6:00 PM. Any request to have an item placed on a future agenda must be made in writing and submitted to the City Clerk’s office.

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Tuesday, September 23, 2025 4

HOUSING AUTHORITY
M. Call to Order
N. Roll Call
O. PUBLIC COMMENT
P. CONSENT CALENDAR
5) Approval of Minutes — Special Meeting — September 9, 2025 Q. NEW BUSINESS
6) Subordination of Deed of Trust recorded on July 2, 2003, regarding the property located at 22565 Franklin Street, Grand Terrace
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 EXECUTIVE DIRECTOR

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.”
DEPARTMENT: General Counsel
R. ADJOURN

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CITY OF GRAND TERRACE
City Council
MINUTES ● September 9, 2025
Council Chambers Regular Meeting 6:00 PM
Grand Terrace Civic Center ● 22795 Barton Road
Call to Order
Mayor Pro Tem Sabino convened the regular Meeting of the City Council for Tuesday, September 9, 2025 at 6:00 PM.

Invocation
The Invocation was given by Dan Flores, President of the Colton Joint Unified School District Board of Education, who opened with a few words for Grand Terrace Resident Bernardo Ojeda Sr. who passed away on July 30, 2025.

Pledge of Allegiance
The Pledge of Allegiance was led by Council Member Brown.

AB 2449 Disclosures
None.

Roll Call

Present: Mayor Pro Tem Michelle Sabino
Council Member Doug Wilson
Council Member Jeff Allen
Council Member Matt Brown

Absent: Mayor Bill Hussey
A. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA
Adrian Guerra, City Attorney, removed Item No. 15 from the Consent Calendar due to the item being discussed at a previous Housing Authority Meeting.

B. PUBLIC COMMENT
None.

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C. SPECIAL PRESENTATIONS
Crystal Wilson delivered a formal presentation to the council, highlighting Ariah Wilson’s distinguished attainment of the Silver Award.

Mayor Pro Tem Sabino and the council presented Ariah with a Certificate of Recognition, followed by photos with Ariah.

NO PUBLIC COMMENT
D. CONSENT CALENDAR

NO PUBLIC COMMENT
COUNCIL MEMBER ALLEN MOTIONED TO APPROVE ITEMS NO. 1–7, 9–12 ON

THE CONSENT CALENDAR, FOLLOWED BY A SECOND BY COUNCIL MEMBER BROWN.

RESULT: APPROVED 4 TO 0
MOVER: Council Member Allen
SECONDER: Council Member Brown
AYES: Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
ABSTAIN: None
NAYS: None
1) Waive Full Reading of, and Direct the City Attorney to Read by Title only for, Ordinances on the Agenda
2) Approval of Minutes - Regular Meeting - August 26, 2025 3) Historical & Cultural Committee Activities Member Removal and Authorization to Post Notice of Vacancy
4) Approval of the June-2025 Check Register in the Amount of $735,843.14 5) Approve Check #82610 to Mayor Hussey in the amount of $359.85 from the June 2025 Check Register
6) Approval of the July-2025 Check Register in the Amount of $1,251,362.00 7) Approve Check #82741 to Mayor Hussey in the amount of $359.85 from the July 2025 Check Register
8) Amendment No. 2 to Agreement for Contract Services with Willdan Engineering for On-Call Engineering and Building & Safety Services Council Member Brown pulled Item No. 8 for discussion.

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COUNCIL MEMBER BROWN MOTIONED TO APPROVE ITEM NO. 8, FOLLOWED

BY A SECOND BY COUNCIL MEMBER ALLEN
RESULT: APPROVED 4 TO 0
MOVER: Council Member Brown
SECONDER: Council Member Allen
AYES: Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
ABSTAIN: None
NAYS: None
9) Cancellation of City Council Meetings on November 25, 2025 and December 23, 2025
10) Grand Terrace City Hall Holiday Closure – 2025
11) Authorization to Utilize Sourcewell and Omnia Partners for Cooperative Purchasing
12) Annual Update to the Capital Project Needs Analysis (CPNA) for FY 2026- 2031
13) Approval of Additional National Opioid Settlements with Purdue Pharma L.P. & Sackler Family
Council Member Brown pulled Item No. 13 for discussion.

COUNCIL MEMBER BROWN MOTIONED TO APPROVE ITEM NO. 13, FOLLOWED

BY A SECOND BY COUNCIL MEMBER ALLEN
RESULT: APPROVED 4 TO 0
MOVER: Council Member Brown
SECONDER: Council Member Allen
AYES: Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
ABSTAIN: None
NAYS: None
14) Approval of Additional National Opioid Settlements with Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus
Council Member Brown pulled Item No. 14 for discussion.

COUNCIL MEMBER BROWN MOTIONED TO APPROVE ITEM NO. 14, FOLLOWED

BY A SECOND BY COUNCIL MEMBER ALLEN

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RESULT: APPROVED 4 TO 0
MOVER: Council Member Brown
SECONDER: Council Member Allen
AYES: Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
ABSTAIN: None
NAYS: None
15) Subordination of Deed of Trust recorded on July 2, 2003, regarding the property located at 22565 Franklin Street, Grand Terrace Item No. 15 was removed from the Consent Calendar.

E. PUBLIC HEARINGS
16) 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
Shanita Tillman, Senior Management Analyst, presented the PowerPoint presentation for this item. Due to the temporary maintenance of the online documents on the City's website, the PowerPoint can be requested from the City Clerk's Office.

NO PUBLIC COMMENT
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 PASS-THROUGH CHARGES.

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F. UNFINISHED BUSINESS - NONE
G. NEW BUSINESS
17) First Reading & Introduction of the 2025 California Building Codes Patrick Johnson, Willdan Engineering, Current Acting Building Official for the City of Grand Terrace, presented the staff report for this item.

NO PUBLIC COMMENT
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
Adrian Guerra, City Attorney, read out the First Reading of an Ordinance to Consider Adoption of the 2025 California Building Codes.

RESULT: APPROVED 4 TO 0
MOVER: Council Member Allen
SECONDER: Council Member Brown
AYES: Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
ABSTAIN: None
NAYS: None
18) Future Agenda Item - Increase in Low-Altitude Overflights from San Bernardino International Airport (SBD)
Konrad Bolowich, City Manager, presented the staff report for this item.

PUBLIC COMMENT
Ken Henderson, Grand Terrace Resident, proposed to the council an additional recommendation for this item, and that is to include his neighbor, Justin Releford, as an alternate resident representative as Mr. Releford has expressed interest in this matter.

Johan Gallo, Grand Terrace Resident, expressed his concerns on this item.

RECOMMENDATION: THAT THE CITY COUNCIL DIRECT STAFF TO FACILITATE A MEETING BETWEEN A CITY DELEGATION—CONSISTING OF ONE (1)

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COUNCILMEMBER AND ONE (1) RESIDENT APPOINTED BY THE COUNCIL— AND SBD AIRPORT MANAGEMENT/OPERATIONS STAFF.

THE PURPOSE OF THE MEETING WILL BE TO PRESENT GRAND TERRACE RESIDENTS’ CONCERNS ABOUT INCREASED LOW-ALTITUDE OVERFLIGHTS AND AIRCRAFT NOISE, DISCUSS THE AIRPORT’S VOLUNTARY NOISEABATEMENT PROGRAMS, AND REQUEST SPECIFIC NEAR-TERM MITIGATIONS

AND FOLLOW-UP ACTIONS, AS OUTLINED IN THIS REPORT

COUNCIL MEMBER BROWN MOTIONED TO APPROVE THE ITEM WITH AN

AMENDMENT TO THE STAFF RECOMMENDATION, TO INCLUDE MAYOR

HUSSEY AS THE DELEGATE ALONG WITH COUNCIL MEMBER WILSON AND TO

HAVE KEN HENDERSON AS THE RESIDENT REPRESENTATIVE FOLLOWED BY

A SECONG FROM COUNCIL MEMBER ALLEN
RESULT: APPROVED 4 TO 0
MOVER: Council Member Brown
SECONDER: Council Member Wilson
AYES: Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
ABSTAIN: None
NAYS: None
19) Future Agenda Item Request - Consideration of Establishing a Citizens Committee for the Petta Family Community Center and Library Konrad Bolowich, City Manager, presented the staff report for this item. He also acknowledged that the name "Petta" was misspelled on the staff report.

NO PUBLIC COMMENT
RECOMMENDATION: THAT THE CITY COUNCIL DEFER FORMATION OF A

COMMUNITY CENTER CITIZENS COMMITTEE AT THIS TIME AND DIRECT STAFF

TO RETURN FOLLOWING THE OUTCOME OF THE UPCOMING SALES TAX

BALLOT INITIATIVE WITH A RECOMMENDATION ON COMMITTEE STRUCTURE,

MEMBERSHIP, AND SCOPE OF WORK
RESULT: APPROVED 4 TO 0
MOVER: Council Member Brown
SECONDER: Council Member Allen
AYES: Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
ABSTAIN: None
NAYS: None

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20) Future Agenda Item Request - Direction to Prepare for Formation of a Firewise Committee and Return with Establishing Documents Konrad Bolowich, City Manager, presented the staff report for this item.

PUBLIC COMMENT
Jarrod Dowden, Grand Terrace Resident and Wildland Fuels Specialist with SBCFD, provided background information on Firewise principles and funding.

RECOMMENDATION: 1. EXPLORE AND DESIGN THE CITY OF GRAND TERRACE

FIREWISE COMMITTEE (COMMITTEE STRUCTURE, MEMBERSHIP, SCOPE OF WORK, AND OPERATING PROCEDURES);

2. PREPARE ALL NECESSARY ESTABLISHING DOCUMENTS (RESOLUTION,

BYLAWS/CHARTER, MEMBERSHIP APPLICATION PROCESS, BROWN ACT

COMPLIANCE FRAMEWORK, MEETING CALENDAR, AND REPORTING

TEMPLATES), PLUS DRAFT WORK PLANS, RISK-ASSESSMENT SCOPE, AND A THREE-YEAR ACTION PLAN TEMPLATE; AND

3. RETURN TO THE CITY COUNCIL WITH A COMPLETE PACKAGE READY FOR

ADOPTION TO FORMALLY ESTABLISH THE FIREWISE COMMITTEE AND LAUNCH THE CITY’S FIREWISE USA® PROGRAM EFFORTS
RESULT: APPROVED 4 TO 0
MOVER: Council Member Allen
SECONDER: Council Member Brown
AYES: Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
ABSTAIN: None
NAYS: None
H. FUTURE AGENDA ITEMS
None.

I. CITY COUNCIL COMMUNICATIONS
Council Member Matt Brown reported on the following:
• Nothing to Report.

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Council Member Jeff Allen reported on the following:
• Attended the San Bernardino County Homeless Partnership Central Valley Regional Steering Committee on September 3, 2025
• Announced the American Cancer Society Relay for Life Race taking place on September 27, 2025
Council Member Doug Wilson reported on the following:
• Attended the Water Resources Meeting
• Attended the 45th Composite Squadron MARCH ARB for the Promotion of Ava Firnkoess on September 8, 2025
Mayor Pro Tem Michelle Sabino reported on the following:
• Emphasized the importance of residents reporting concerns or emergencies to the appropriate authorities
J. CITY MANAGER COMMUNICATIONS
Konrad Bolowich, City Manager, announced the following:
• Emphasized the importance of residents reporting concerns or emergencies to the appropriate authorities
• Expressed gratitude to the Riverside Highland Water District for their exceptional response following the water line break on Michigan Street • Thanked the residents for their continued use of the dumpster that is on site at City Hall
Fire Department Communications
• Nothing to Report
Sheriff Department Communications
• Nothing to Report
K. CLOSED SESSION - NONE

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L. ADJOURN
Mayor Pro Tem Sabino adjourned the Regular Meeting of the City Council at 7:25 p.m. and requested a moment of silence in remembrance of Grand Terrace Resident Bernardo Ojeda, who passed away on July 30, 2025. The next Regular City Council Meeting will be held on Tuesday, September 23, 2025, at 6:00 p.m. _______________________________ _______________________________ Bill Hussey, Mayor Daysi Alcocer, City Clerk

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AGENDA REPORT
MEETING DATE: September 23, 2025
TITLE: Measure I Five Year Capital Improvement Plan for FY 2026-2030 PRESENTED BY: Shanita Tillman, Sr. Management Analyst
RECOMMENDATION: APPROVE THE MEASURE I FIVE-YEAR (FY 2025/26–2029/30) CAPITAL IMPROVEMENT PLAN and; ADOPT RESOLUTION NO. 2025-XX

APPROVING THE MEASURE I FIVE-YEAR CAPITAL IMPROVEMENT

PLAN AND EXPENDITURE STRATEGY
2030 VISION STATEMENT:

This staff report aligns with Goal #1, Ensure Our Fiscal Viability, by securing regional transportation revenues to support infrastructure investments, and Goal #2, Maintain Public Safety, by addressing street, sidewalk, and tree maintenance improvements that enhance mobility and safety.

BACKGROUND:

San Bernardino County voters approved Measure I, a one-half cent transportation sales tax administered by the San Bernardino County Transportation Authority (SBCTA). Each local jurisdiction is required to adopt a Five-Year Capital Improvement Plan (CIP) and corresponding Expenditure Strategy to remain eligible for Local Street Program funding.

DISCUSSION:

The City of Grand Terrace anticipates receiving $332,936 in FY 2025/26 and a total of $1,760,736 through FY 2029/30 in Measure I Local Street Program revenue. Of this amount, $1,395,800 is allocated specifically to pavement management. While this funding is essential, it represents only a small fraction of the City’s overall roadway needs.

To put this into perspective, resurfacing a short residential cul-de-sac serving approximately 13 homes can cost $200,000 to $300,000, depending on condition and treatment type. Based on these costs, the City’s entire five-year pavement management allocation is equivalent to repaving only four to six cul-de-sacs, or less than 5% of the City’s 44 centerline miles of roadway.

Given this limited funding, the City’s strategy is to prioritize major arterials and heavily traveled streets that have the greatest impact on traffic circulation, public safety, and roadway condition. Local neighborhood streets will be considered once critical corridors are addressed and funding allows. The adopted CIP and Expenditure Strategy allocate:
• CIP Pavement Management Program – $1,395,800 over five years to continue critical roadway rehabilitation.
• Tree Program – $110,820 over five years to enhance safety and visibility through proactive

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tree maintenance.
• CIP Sidewalk Rehabilitation – $254,116 over five years to address ADA compliance and pedestrian infrastructure.

This approach ensures that limited Measure I funds are directed where they provide the greatest community benefit, keeps the City in compliance with SBCTA requirements, and positions the City to leverage other sources such as Gas Tax and RMRA for broader maintenance needs.

ENVIRONMENTAL IMPACT:

The adoption of the CIP is not a project under the California Environmental Quality Act (CEQA).

Individual projects will be evaluated for CEQA compliance at the time of design and construction.

FISCAL IMPACT:

The FY 2025/26 road rehabilitation project was completed in July 2025 by Onyx Paving, and a related concrete improvement project is currently underway by the same contractor. Both projects were funded and approved as part of the FY 2025/26 budget. Future year project costs and contract awards will be presented to the City Council for approval at the time of award. The City will continue to meet the Maintenance of Effort requirement of $115,156 in General Fund expenditures for transportation-related activities.

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RESOLUTION NO. 2025-XX

RESOLUTION OF THE CITY OF GRAND TERRACE, STATE OF

CALIFORNIA, ADOPTING THE MEASURE I FIVE-YEAR CAPITAL
IMPROVEMENT PLAN FOR FY2025/2026 THROUGH FY2029/2030
WHEREAS, San Bernardino County voters approved passage of Measure I in November 2004, authorizing the San Bernardino County Transportation Authority to impose a onehalf of one percent retail transactions and use tax applicable in the incorporated and unincorporated territory of the County of San Bernardino; and
WHEREAS, revenue from the tax can only be used for transportation improvement and traffic management programs authorized in the Expenditure Plans set forth in Ordinance No. 04-01 of the Authority; and
WHEREAS, the Strategic Plan requires each local jurisdiction applying for revenue from the Local Street Program to annually adopt and update a Five-Year Capital Improvement Plan; and WHEREAS, California Public Utilities Code 190300 and Ordinance No. 04-01 require each local jurisdiction to maintain General Fund expenditures for transportation-related construction and maintenance activities at the required Maintenance of Effort base year level in each fiscal year of the adopted Five-Year Capital Improvement Plan, which for the City of Grand Terrace is $115,156; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Grand Terrace, State of California, that the Measure I Five-Year Capital Improvement Plan for FY2025/26 through FY2029/30, and the corresponding Local Street Expenditure Strategy, attached hereto respectively as Exhibit A and Exhibit B, are hereby adopted as part of the City’s Measure I compliance documentation.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 23rd 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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Resolution Number:

Resolution Approval Date:

Contact Person/Title:

Phone:

Email:
6/30/25 Carryover Balance $0.00
FY2025/26 Est. Revenue FY2026/27 Est. Revenue FY2027/28 Est. Revenue FY2028/29 Est. Revenue FY2029/30 Est. Revenue Total Est. Rev. $332,936 $342,192 $351,773 $361,727 $372,108 $1,760,736 Projects:

CIP Pavement Management Program No No 0.0% 0.0% $15,000,000 $268,000 $267,192 $276,773 $286,727 $297,108 $1,395,800 Tree Program No No 0.0% 0.0% $238,734 $50,820 $15,000 $15,000 $15,000 $15,000 $110,820 CIP Sidewalk Rehabilitation No No 0.0% 0.0% $60,000,000 $14,116 $60,000 $60,000 $60,000 $60,000 $254,116

0.0% 0.0% $0

0.0% 0.0% $0 $0 $0 $0 $0 $0 $0

0.0% 0.0% $0 $0 $0 $0 $0 $0 $0
$332,936 $342,192 $351,773 $361,727 $372,108 $1,760,736 Total Programming is currently 100% Total Estimated Programming: $1,760,736 2025-XX Jurisdiction:
9/23/2025
Shanita Tillman
951-295-4005
Measure I Local Pass-through Program

FIVE YEAR CAPITAL IMPROVEMENT PLAN
Fiscal Years 2025/2026 thru 2029/2030
[email protected]
Projects Total:

Grand Terrace
Current
Estimate
Current
Estimate Total CurrentEstimate
Current
Estimate
Current
Estimate
(Must not exceed 150% of Carryover Balance +
Total Estimated Revenue)
Is Project in
City's
Non-motorized
Transportation
Plan?
(Yes/No)
Does Project
have an ATP
Component?
(Yes/No)
Is the Project on the
City's Nexus Study List?
(Public/DIF Share %)
Estimated Total
Project Cost

Page 1 of 1 ends

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EXHIBIT B
FY2025/2026 to FY2029/2030 MICIP Expenditure Strategy

CITY OF GRAND TERRACE

MEASURE I CAPITAL IMPROVEMENT PLAN

EXPENDITURE STRATEGY
Fiscal Year 2025/26 to Fiscal Year 2029/30
The City of Grand Terrace does not have a carryover balance in the Measure I Local Street fund as of June 30, 2025, and anticipates receiving $332,936 in new revenue for FY25/26. In this next fiscal year, the City is planning to allocate $268,000 to its CIP Pavement Management Program to support critical street maintenance and rehabilitation. An additional $50,820 will fund the Tree Program, with a focus on enhancing visibility along roadways to improve safety. The City will also invest $14,116 in its CIP Sidewalk Rehabilitation efforts to address pedestrian infrastructure needs. Over the five-year period from FY25/26 through FY29/30, the City expects to receive a total of $1,760,736 in Measure I revenue to support the continued maintenance and improvement of public right-of-way infrastructure.

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AGENDA REPORT
MEETING DATE: September 23, 2025
TITLE: Future Agenda Item Request — Consideration of Ordinance to Impose Fees for Excessive Non-False Alarm 911 Responses
PRESENTED BY: Konrad Bolowich, City Manager
RECOMMENDATION: THAT THE CITY COUNCIL NOT ADOPT AN ORDINANCE IMPOSING

FINES OR FEES ON PROPERTY OWNERS OR BUSINESSES FOR
“EXCESSIVE” BUT LEGITIMATE 911 CALLS. INSTEAD, STAFF

RECOMMENDS ADDRESSING CHRONIC PROBLEM LOCATIONS

THROUGH BUSINESS LICENSING / CONDITIONAL USE PERMIT (CUP)

CONDITIONS AND GOOD NEIGHBOR AGREEMENTS, AND THE SAN
BERNARDINO COUNTY SHERIFFS DEPT. CRIME FREE HOUSING

PROGRAM
2030 VISION STATEMENT:

This staff report supports Goal #1, Ensure our Fiscal Viability This staff report supports Goal #2, Ensure Staff Levels for Police Service Remain Adequate for Our Community
BACKGROUND:

A request has been made to explore an ordinance charging fees when a property generates repeated 911 responses, even when the calls are not false alarms. State law already allows fees for false alarms (Gov’t Code §53069.85). The current request is different in that it is proposing charging for real or perceived emergencies that legitimately trigger a 911 call and response.

DISCUSSION:

Charging for legitimate 911 calls is unlawful, regardless of the frequency of calls. California courts have emphasized that fees must reflect cost recovery for nuisances, not punishment for emergency calls (People v. Lim (1941) 18 Cal.2d 872). Victim-driven calls (e.g., domestic violence) are explicitly protected and cannot form the basis for penalties.

A critical problem is that many 911 calls are legitimate in the caller’s mind but do not ultimately require police or fire intervention. In such cases, the caller acted reasonably under the circumstances, and dispatch protocols require response until the situation is verified. There is no lawful or reliable way for the City to proactively separate calls that are “true emergencies” from those that are “excessive but unnecessary.” Every call must be treated as potentially valid.

Charging for these calls would create serious risks of discouraging reporting, undermining public safety and exposing the City to liability if harm occurs after a discouraged call.

Broader approach may be applied under codes relating to chronic nuisance properties. These apply when a property generates repeated calls for service typically relating to disturbances, fights, noise, drug activity, etc.

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In such situations, typical enforcement steps include:
• Written notice to property owner.
• Mandatory corrective plan (security guards, lighting, tenant screening, etc.). • Cost recovery for future police responses if abatement not achieved.

There are, however, risks to this, and nuisance abatement must be carefully applied to avoid penalizing victims.

The challenge of upholding nuisance charges is that nuisance designations must show unreasonable interference with public peace or safety—a high evidentiary bar. Enforcement requires repeated documentation (police reports, testimony) and often ends up in litigation. Without strong safeguards, ordinances risk being overturned or creating liability for the City.

ALTERNATIVES CONSIDERED:

Business Licensing / CUP Conditions at the initiation of operations to address potential issues. Such conditions may include:
• On-site security personnel.
• Security cameras and lighting.
• Responsible alcohol service training.
• Limits on occupancy or hours.

Implementing good neighbor agreements. These are voluntary agreements negotiated with businesses that generate repeated calls. Typical commitments include:
• Security measures and staff training.
• Cooperation with law enforcement.
• Community engagement to address impacts.
• Community policing partnerships.
• Mediation before moving to formal nuisance designation.

The Sheriffs Department has a crime-free housing program which may be easily adapted. The San Bernardino County Sheriff’s Crime Free Multi-Housing Program is a voluntary partnership with rental property owners to reduce crime and improve safety. It includes manager training, a property safety inspection using CPTED standards, and a resident safety meeting with a crime-free lease addendum.

Certified properties receive recognition and ongoing support from the Sheriff’s Department, helping lower calls for service and creating safer communities.

ENVIRONMENTAL IMPACT:

This action does not meet the threshold of a project under CEQA and is exempt.

FISCAL IMPACT:

Rejecting a per-call fee ordinance avoids legal risk and enforcement costs. Licensing/CUP conditions and Good Neighbor Agreements shift responsibility to the operator rather than the City.

Page 20 of 76 ends

CITY OF GRAND TERRACE
Grand Terrace Housing Authority
MINUTES ● September 9, 2025
Council Chambers Special Meeting 5:30 PM
Grand Terrace Civic Center ● 22795 Barton Road
Call to Order
Vice-Chair Michelle Sabino convened the Special Meeting of the Grand Terrace Housing Authority at 5:30 p.m.

Roll Call

Present: Vice-Chair Michelle Sabino
Board Member Doug Wilson
Board Member Jeff Allen
Board Member Matt Brown

Absent: Chairman Bill Hussey
A. PUBLIC COMMENT
None.

B. NEW BUSINESS
1) Subordination of Deed of Trust recorded on July 2, 2003, regarding the property located at 22565 Franklin Street, Grand Terrace 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
Adrian Guerra, General Counsel, provided a PowerPoint Presentation on this item. Due to the temporary maintenance of the online documents on the City's website, this PowerPoint can be requested from the City Clerk's Office.

Page 21 of 76 ends

NO PUBLIC COMMENT

BOARD MEMBER JEFF ALLEN MOTIONED WITH A SECOND BY BOARD

MEMBER MATT BROWN TO BRING THIS ITEM BACK AT A FUTURE DATE RESULT: APPROVED 4 TO 0
MOVER: Council Member Allen
SECONDER: Council Member Brown
AYES: Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
ABSTAIN: None
NAYS: None
C. ADJOURN
Vice-Chair Sabino adjourned the Special Meeting of the Grand Terrace Housing Authority at 5:50 p.m.
_______________________________ _______________________________ Bill Hussey, Chair Daysi Alcocer, City Clerk

Page 22 of 76 ends

AGENDA REPORT
MEETING DATE:

TITLE:

PRESENTED BY:

September 23, 2025
Subordination of Deed of Trust recorded on July 2, 2003, regarding the property located at 22565 Franklin Street, Grand Terrace Adrian Guerra, General Counsel Coun
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 EXECUTIVE DIRECTOR 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:

This staff report supports Goal #4: Develop and Implement Successful Partnerships by facilitating a collaborative solution that balances fiscal responsibility with community support.

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

Page 23 of 76 ends

Lender”) in the amount of Two Hundred Sixty-Five Thousand Dollars ($265,000) (“Refinance 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.
$305,000 in equity shall remain available in the Property after execution of the Refinance Loan, and $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 ($15,500).

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. Option 2 reduces short-term risk by requiring partial repayment of the Equity Share now. However, the borrower has indicated he plans to refinance again in a few years to secure a better interest rate

Page 24 of 76 ends

which is supported by the significant equity which remains in the Property. Option 3 allows the borrower to pay off unsecured junior debt, which may improve his ability to fully repay the Equity Share after a future refinance.

GRAND TERRACE HOUSING AUTHORITY MEETING ON SEPTEMBER 9, 2025:

This matter was brought before the Grand Terrace Housing Authority at a meeting held on September 9, 2025. Answers to the questions that were raised are included below:

1. Will the ALTA loan title insurance policy protect against destruction of the property or bankruptcy? The ALTA loan title policy is to ensure that the new deed of trust is valid and is in second lien position as intended.
• Bankruptcy: The title policy will not protect against bankruptcy filing by the owner. It protects the City and ensures that its lien is only subject to the new senior loan. Given the City’s trust deed will be recorded, the Court will not remove that deed of trust as it’s a secured obligation.

Even if the owner (debtor) is discharged in bankruptcy, the trust deed will remain against the property. Further, with approximately $305,000 of equity remaining in the property after the refinance, the risk to a junior lienholder (i.e. the City) is relatively low. The Current Borrower has a strong incentive to continue making payments to avoid losing substantial equity, and the significant equity also increases the likelihood of a successful future refinance that could satisfy the subordinate debt.
• Property Damage: The trust deed will require property damage insurance be maintained.

This requirement will also be required by the senior trust deed. Under CA law, the proceeds for such insurance MUST be made available to rebuild the property. Normally earthquake insurance is NOT required as it is too expensive.

2. How will the deed of trust securing the remaining balance of the Equity Share Payment be structured?
• Procedure: The title officer for the Refinance Loan has requested that the City release the original DOT and record a new one in its place. The title policy will insure that the City’s new DOT is in second lien position subject only to the senior trust deed. • Sale of the Property: The Property cannot be sold without payment of both secured deeds of trust.
• Foreclosure: The City’s DOT will be wiped out if the senior loan was to foreclose. However, the City would have the right to keep the senior loan in full force by paying the delinquencies and then adding those amounts to its DOT and then the City foreclosing its DOT. If the City chooses not to do so and the Property is foreclosed, and at the foreclosure sale the Property is sold for more than the senior loan amount, any excess will be paid to the City as the second trust deed holder.
• Risk Analysis: Per the appraisal obtained by the senior lender, the Property is worth $570,000. Accordingly there is equity in the Property in excess of the amounts of both the senior loan and the City loan. The greater the equity the less likely that there would be a foreclosure of the senior loan.

3. If the City Manager is delegated authority to collect a portion of the Equity Share Payment, what amount would be recommended? If the Board elects to support the Refinance Loan, the City can require a partial payment up to $50,500 without jeopardizing the Refinance Loan. The primary consideration to determine the appropriate amount is that requiring partial repayment of the City’s Equity Share Payment at the time of refinance would allow the City to recover funds sooner. However, such a requirement could also delay the borrower’s ability to refinance again, potentially extending the period before full repayment is achieved

Page 25 of 76 ends

4. Why consider allowing the Current Borrower to use proceeds for unsecured debt and replacement of the HVAC? The decision to allow the borrower to use refinance proceeds for unsecured debt or to replace the HVAC system is a policy matter and is fully within the City Council’s discretion.

RECOMMENDATION:

Staff recommends the Board:
• 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 shall 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) $35,000 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 Executive Director 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.

ENVIRONMENTAL IMPACT:

No environmental impact.

FISCAL IMPACT:

The Housing Authority will receive the $44,000 loan principal immediately, but the Equity Share Payment, or a portion thereof, 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.

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

Page 26 of 76 ends

01247.0001 2033181.4
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 IN THE AMOUNT OF APPROXIMATELY $___________, PLUS ANY FUTURE APPRECIATION OF

VALUE OF THE PROPERTY AS OF THE DATE OF THIS RESOLUTION, 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 EXECUTIVE DIRECTOR 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 total Equity Share Payment in the amount of approximately $83,313 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:

Page 27 of 76 ends

01247.0001 2033181.4

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 in the amount of approximately $___________ plus any future appreciation of value of the Property as of the date of this Resolution, as set forth in more detail in the Modified RDA Loan, to continue to be secured by a 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 Modified RDA Loan shall 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 approximately $_________ of the Refinance Loan be allocated as follows: (i) $__________ be used to pay-off the Current Owner’s unsecured debt through the escrow; and (ii) $_________ be paid to the Current Owner for the new HVAC].

3. The Housing Authority authorizes the Executive Director and the Housing Authority’s attorney to prepare the Modified 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

Page 28 of 76 ends

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
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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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Page 34 of 76 ends

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 35 of 76 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 41 of 76 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 44 of 76 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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Page 45 of 76 ends

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 46 of 76 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 47 of 76 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
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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 48 of 76 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 49 of 76 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 50 of 76 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 51 of 76 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 52 of 76 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 53 of 76 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 54 of 76 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 55 of 76 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 56 of 76 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 57 of 76 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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Page 58 of 76 ends

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
esign.alamode.com/verify

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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
esign.alamode.com/verify

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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

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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

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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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Grand Terrace City CouncilSeptember 23, 2025

Grand Terrace City Council
September 23, 2025