Attachment 7 - Appraisal Report — Lake Elsinore City Council, November 18, 2025

APPRAISAL REPORT

CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(Alberhill Ranch)

City of Lake Elsinore, Riverside County, California
(Appraisers’ File No. 2025-1310)

Prepared For
City of Lake Elsinore
130 S. Main Street
Lake Elsinore, CA 92530

Prepared By
Kitty Siino & Associates, Inc.
115 East Second Street, Suite 100
Tustin, California 92780

KITTY SIINO & ASSOCIATES, INC.

REAL ESTATE APPRAISERS & CONSULTANTS

November 4, 2025

Mr. Jason Simpson, City Manager
City of Lake Elsinore
130 S. Main Street
Lake Elsinore, CA 92530

Reference: Appraisal Report – City of Lake Elsinore
Community Facilities District No. 2022-1 (Alberhill)
SEC Alberhill Ranch Road and Nichols Road, City of Lake Elsinore

Dear Mr. Simpson:

At the request and authorization of the City of Lake Elsinore, we have completed an Appraisal Report for Community Facilities District No. 2022-1 ( Alberhill), of the City of Lake Elsinore (“Lake Elsinore CFD No. 2022-1”). Lake Elsinore CFD No. 2022-1 consists of a portion of the master planned community being marketed as Alberhill Ranch with four neighborhoods, all being developed by Pulte Home Company LLC (“Pulte Homes”). One of the four neighborhoods, Crestly, is being marketed under Pulte Homes’s Centex Brand.

There is a total of 344 proposed homes within Lake Elsinore CFD 2022- 1. The four neighborhoods are known as C restly by Centex and Ridgeline, Fairfield and Linden by Pulte Homes. Within the total 344 proposed homes, 224 are completed and have closed to individual homeowners to date, with an additional 31 homes in escrow which are due to close upon completion. The builder -owned property ranges from completed model homes to homes under construction to generally finished lots.

The valuation method used in this report is the Sales Comparison Approach along with a Discounted Cash Flow Analysis and a Mass Appraisal Technique as defined within this report. The fee simple estate of the subject property has been valued subject to the lien of the Lake Elsinore CFD No. 2022-1 Special Tax Bonds. This report is written with the hypothetical condition that the subject property is enhanced by the improvements and/or fee credits to be funded by the Lake Elsinore CFD No. 2022-1 Special Tax Bonds.

As a result of our investigation, the concluded Minimum Market Value (as defined within this report) for the subject property is:

Alberhill – Lake Elsinore CFD No. 2022-1
Pulte Ownership (35 Homes & 85 lots) $ 39,739,289
Individual Owned (224 homes) $ 145,705,820

Aggregate Value of Lake Elsinore CFD No. 2022-1 $ 185,445,109

The values are stated subject to the Assumptions and Limiting Conditions of this report, the Appraiser’s Certification and as of October 7, 2025.

115 East Second Street, Suite 100, Tustin, California 92780 (714) 544-9978 - Phone, (714) 544-9985 – Fax, E-Mail: [email protected] Mr. Jason Simpson
City of Lake Elsinore
November 4, 2025
Page Two

Some supporting documentation concerning the data, reasoning and analyses may be retained in the appraiser’s files. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. This Appraisal Report is intended to comply with both the Uniform Standards of Professional Appraisal Practice (“USPAP” 2024) and with the Appraisal Standards of the California Debt and Investment Advisory Commission (“CDIAC”). The appraiser is not responsible for unauthorized use of this report.

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

Respectfully submitted,

KITTY SIINO & ASSOCIATES, INC.

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

TABLE OF CONTENTS

Assumptions and Limiting Conditions............................................................................... i Hypothetical Condition .................................................................................................... iii Extraordinary Assumption ............................................................................................... iii Aerial Photo of Lake Elsinore CFD No. 2022-1 ............................................................... v Purpose of the Appraisal ................................................................................................ 1 The Subject Property ...................................................................................................... 1 Intended Use of the Report ............................................................................................ 2 Definitions ...................................................................................................................... 2 Property Rights Appraised ............................................................................................. 4 Effective Date of Value ................................................................................................... 4 Date of Report ................................................................................................................ 4 Scope of Appraisal ........................................................................................................ 5 Regional Area Map.......................................................................................................... 8 County of Riverside Area Description ............................................................................. 9 Lake Elsinore Description and Map ............................................................................... 18 Alberhill Ranch Specific Plan / Surrounding Area ......................................................... 24 Community Facilities District No. 2022-1 ....................................................................... 26 Subject Property Description ......................................................................................... 28 Riverside County Housing Market ................................................................................. 40 Highest and Best Use Analysis ..................................................................................... 51 Valuation Analyses and Conclusions ............................................................................ 55 Appraisal Report Summary ........................................................................................... 79 Appraiser’s Certification ............................................................................................... 80

ADDENDA

Lake Elsinore CFD No. 2022-1 Boundary Map
Tract Map No. 28214-9
Discounted Cash Flow Analyses
Finished Lot Land Sales Map and Summary Chart
Improved Residential Sales Map and Summary Chart
Appraiser’s Qualifications
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ASSUMPTIONS AND LIMITING CONDITIONS

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

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

3. It is assumed that the subject property is subject to the special tax lien of Lake Elsinore CFD No. 2022-1.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

18. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event, only with proper qualification and only in its entirety. Permission is given for this appraisal to be published as a part of the Official Statement or similar document for the Lake Elsinore CFD No. 2022-1 Special Tax Bonds.

HYPOTHETICAL CONDITION

1. It is assumed that all improvements and benefits to the subject properties, which are to be funded by the Lake Elsinore CFD No. 2022-1 Special Tax Bond proceeds, are completed and in place.

EXTRAORDINARY ASSUMPTION

1. It is assumed that the cost and sales information provided by the homebuilder are true and accurate. We have reviewed the sales and checked some against public record, however we have not reviewed actual sales documents on each sale. We have reviewed and analyzed the remaining land development costs and they appear reasonable; however, we do not have expertise in cost estimating. If the sales or the costs differ, it will affect the value of the property.

PURPOSE OF THE APPRAISAL

The purpose of this appraisal report is to estimate the value of the fee simple interest of the subject property, subject to the special tax lien of the Lake Elsinore CFD No. 2022-1 Special Tax Bonds.

THE SUBJECT PROPERTY

The subject property is encompassed by Lake Elsinore CFD No. 2022-1 and is proposed for 344 single-family residences within the northern-most portion of the City of Lake Elsinore located at the southeast corner of Nichols Road and Alberhill Ranch Road. The subject property is known as a portion of the master planned community of Alberhill Ranch, with the subject portion being developed by Pulte Homes. The subject property is planned for 344 homes being built into four neighborhoods as detailed below.

Description
No.

Lots

Ownership

Condition/Status

Crestly – Lots 1-6, 9, 12-15, 18-32, 88-92, 99-112, 121-142, 154-163 of Tract 28214-9 Lots 18-32, 88-92, 99-112, 121-123, 125, 128,
134-135, 137-142, 154-163
57 Individuals Completed Houses / Closed
Lot 1 1 Pulte Homes Model Homes
Lots 124, 126-127, 129-133 and 136 9 Pulte Homes Homes over 95% complete (4 in escrow)
N/A Pulte Homes Homes U/C (none in escrow)
Lots 2-6, 9 and 12-15 10 Pulte Homes Finished Lots (none in escrow) Subtotal Crestly 77

Ridgeline – Lots 16-17, 207-227, 232-235, 237-240, 246-265, 267-292, 308, 339-344 of Tract 28214-9 Lots 218-221, 224-227, 232-235, 237-240, 246-
265, 267-283, 285, 308, 339, 341-344
60 Individuals Completed Houses / Closed
Lot 16-17 2 Pulte Homes Model Homes
Lots 217, 222-223, 284 and 340 5 Pulte Homes Homes over 95% complete (5 In escrow)
Lots 213-216 and 286-287 6 Pulte Homes Homes U/C (3 in escrow) Lot 207-212 and 288-292 11 Pulte Homes Finished Lots (5 in escrow) Subtotal Ridgeline 84

Fairfield – Lots 7-8, 33-87, 93-98, 113-120, 143-153, 164-168 of Tract 28214-9 Lots 33-43, 82-87, 93-96, 98, 114-120. 143-153,
164-168
45 Individuals Completed Houses / Closed
Lot 7 and 8 2 Pulte Homes Model Homes
Lots 44-45, 80-81, 97 and 113 6
Pulte Homes
Homes over 95% complete (6 In
escrow)
Lot 46-50 and 78-79 7 Pulte Homes Homes U/C (3 in escrow) Lots 51-77 27 Pulte Homes Finished Lots (none in escrow) Subtotal Fairfield 87
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Linden – Lots 10-11, 169-206, 228-231, 236, 241-245, 266, 293-307, 309-338 of Tract 28214-9 Lots 169-186, 189, 191, 228-231, 236, 241-245,
266, 305-307, 309-322, 324-332, 334-338
62 Individuals Completed Houses / Closed
Lots 10 and 11 2 Pulte Homes Model Homes
Loys 187-188, 190, 192-194, 323 and 333 8
Pulte Homes
Homes over 95% complete (4 In
escrow)
Lots 195 and 302-304 4 Pulte Homes Homes U/C (none in escrow) Lots 196-206 and 293-301 20 Pulte Homes Finished Lots (1 in escrow) Subtotal Linden 96
Total Lots 344

INTENDED USE OF REPORT

It is the appraiser’s understanding that the client, the City of Lake Elsinore, will utilize this report in disclosure documents related to the sale of the Special Tax Bonds of Lake Elsinore CFD No. 2022-1. This report may be included in the Official Statement or similar document to be distributed in connection with the marketing and offering of the bonds.

It is the appraiser’s understanding that there are no other intended uses of this report.

DEFINITIONS

Market Value
The term “Market Value” as used in this report is defined as:

"The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the co nsummation 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.”
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1 1 The Appraisal of Real Estate, 13th Edition
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Inherent in the Market Value definition is exposure time or the time the subject property would have been exposed on the open market prior to the appraisal in order to sell at the concluded values. In the case at hand and considering current market conditions , the exposure time for each single home or the builder’s ownership in a bulk sale is less than one year.

Aggregate Retail Proceeds
As used in the Discounted Cash Flow Analysis, Aggregate Retail Proceeds is defined:
“The sum of the appraised values of the individual units over 95 percent and builder-owned, at date of value. The sum includes an allowance for lot premiums, when applicable. This is not the market value of the project in bulk.”
Bulk Value
Bulk Value is defined as:

The value of a group of lots, parcels, or homes to a single purchaser, on a specified date, under the terms and conditions of the definition of market value.

Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow Analysis is:

The procedure in which a discount rate is applied to a set of projected income streams and a reversion. The analys is specifies the quantity, variability, timing, and duration of the income streams as well as the quantity and timing of the reversion and discounts each to its present value at a specified yield rate.

Finished Lot
The term “Finished Lot” is defined as:
“A parcel which has legal entitlements created by a recorded subdivision map, whose physical characteristics are a fine graded level pad per lot with infrastructure contiguous to each individual lot, asphalt paved roads and the necessary utilities. This term assumes the payment of all applicable development fees with the exception of building permit and plan check fees.”

Hypothetical Condition
The Term “Hypothetical Condition” is defined by USPAP as:
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“That which is contrary to what exists but is supposed for the purpose of the analysis”

The Hypothetical Condition within this report is that subject property is enhanced by the improvements and/or fee credits to be funded by bonds issued by Lake Elsinore CFD No. 2022-1.

Extraordinary Assumption
The term “extraordinary assumption” is defined by USPAP as:
“An assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser’s opinions or conclusion”

The Extraordinary Assumption used in this report is that the cost and sales information provided by the homebuilder are true and accurate. We have reviewed the sales and checked some against public record, however, we have not reviewed actual sales documents on each sale. We have reviewed a summary of the remaining land development costs and they appear reasonable, however, we are not experts in the field of cost estimating. If the sales or costs differ, it will affect the value of the property.

PROPERTY RIGHTS APPRAISED

The property rights being appraised are of a fee simple estate interest , subject to easements of record and subject to the Lake Elsinore CFD No. 2022-1 special tax lien.

The definition of “fee simple estate” is defined as:
“absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.”
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2 EFFECTIVE DATE OF VALUE

The subject properties are valued as of October 7, 2025.

DATE OF REPORT

The date of this report is November 4, 2025.

2 The Appraisal of Real Estate, 13th Edition
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SCOPE OF APPRAISAL

As previously stated, the purpose of this appraisal is to report the appraiser ’s best estimate of the market value for the subject property, Lake Elsinore CFD No. 2022-1 , which encompasses the four neighborhoods known as Crestly, Ridgeline, Fairfield and Linden within the master planned community of Alberhill Ranch in Lake Elsinore. The entire Murdock portion of the Alberhill Ranch is approved for 1,536 single family detached homes while the subject is known as Sub Areas F and G of the Murdock portion of the Alberhill Ranch which are mapped for 344 single family detached lots with a minimum lot size of 6,000 square feet (however the majority of the lots are larger) which are being built out into four neighborhoods by Pulte Homes. This valuation is for the residential property in its current condition assuming the improvements to be funded by the bonds of Lake Elsinore CFD No. 2022-1 are in place or have accrued to the property.

All four neighborhoods are currently selling homes. Out of the total 344 proposed homes, 224 homes have closed to individuals at this time and an additional 31 are in escrow and due to close upon completion. This appraisal will be presented in the following format:
• County of Riverside Description
• City of Lake Elsinore Description
• Alberhill Ranch / Immediate Surroundings Description
• Brief Description of CFD No. 2022-1
• Subject Property Description
• Riverside County Residential Market Analysis
• Highest and Best Use Analysis
• Valuation Procedure, Analyses and Conclusions
• Appraisal Report Summary

In valuing the subject propert y, the value estimates will be based upon the highest and best use conclusion using the Sales Comparison Approach. The Sales Comparison Approach to value is defined as:

“…a set of procedures in which a value indication is derived by comparing the property being appraised to similar properties that have been sold recently, then applying appropriate units of comparison and making adjustments to the sales prices of the comparables based on the elements of comparison. The Sales Comparison Approach may be used to value improved properties, vacant land _________________________________________________________________________________________________________ Appraisal Report
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or land being considered as though vacant; it is the most common and preferred method of land valuation when an adequate supply of comparables is available.”
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3 In the Sales Comparison Approach, market value is estimated by comparing properties similar to the subject that have recently been sold, are listed for sale or are under contract. Neither a cost or income approach was utilized as they were not considered necessary to arrive at credible results.

The due diligence of this appraisal report included the following:

1. Compiled demographic information and related that data to the subject propert ies to perform a feasibility/demand analysis.

2. Gathered and analyzed information on the subject marketplace, reviewed several real estate brokerage publications on historical and projected growth in the subject market and researched the micro and macro- economic outlook within Riverside County and the Lake Elsinore area.

3. Toured and inspected the subject propert y between August 15 and October 7, 2025.

4. Had the site flown by an aerial photographer on September 25, 2025.

5. Interviewed representatives from the builder in order to obtain project information.

6. Reviewed the Murdock Alberhill Ranch Specific Plan which was adopted by the City of Lake Elsinore in June 1992 and amended in December 27, 2005 and again on November 25, 2008.

7. Reviewed land development cost information from the builders in order to ascertain the remaining costs to complete the development of the lands to true finished lots.

8. Reviewed mapping on the subject property.

9. Reviewed title reports on the subject property.

10. Reviewed sales brochures on each of the subject neighborhoods.

11. Reviewed actual sales information from the builder on all closed homes and current escrows.

3 Dictionary of Real Estate Appraisal, Fourth Edition, 2002 _________________________________________________________________________________________________________ Appraisal Report
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12. Searched the area for relevant comparable new home residential projects, including sales prices and concessions and interviewed representatives from each comparable neighborhood.

13. Searched the area for relevant comparable residential land sales and interviewed representatives regarding the transactions when available.

14. Reviewed Multiple Listing Service (“MLS”) information on re- sales and current listings of existing homes within Lake Elsinore CFD No. 2022-1.

15. Inspected the subject property for any for-sale or property listing signs that may not be listed on the MLS yet.

Regional Map
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COUNTY OF RIVERSIDE AREA DESCRIPTION

Location
The subject property is located in the northwestern portion of Riverside County (the “County”), about one mile south of Interstate 15 (“I-15”) off Nichols Road in the City of Lake Elsinore (“City”). The County encompasses approximately 7,300 square miles, and includes large expanses of undeveloped deserts, valleys, canyons, and mountains. The County is a major beneficiary of outward urban pressure from Orange and Los Angeles Counties as well as growth from San Diego County to the south. Although located at the periphery of most urban activity in Southern California, Riverside County, particularly the western area, has been a major growth area and is perceived by most observers as an area expected to continue to grow. Riverside and San Bernardino Counties are considered distinct from Los Angeles and Orange Counties and belong to the same Metropolitan Statistical Area (“MSA”). This area, consisting of San Bernardino and Riverside Counties, is commonly referred to as the Inland Empire.

Transportation
The subject property is situated approximately one mile south of I-15 via Lake Drive to Nichols Ranch Road, to Alberhill Ranch Road, about one mile northwest of the Lake Elsinore (“Lake”). Additional access is via I -15 to Nichols Road exit, west to Alberhill Ranch Road. I- 15 travels in a northerly/southerly direction east of the subject and provides access to Barstow and Nevada to the north and San Diego to the south. The 91 Freeway is generally in a southwest to northeast direction about 15 miles northeast of the subject and provides access into Los Angeles to the west and to the San Bernardino mountains to the north when it merges with Interstate 215 (“I-215”).

The County is served by Amtrak and Metrolink as well as several rail freight -lines. The Ontario International Airport provides regional air service and is located approximately 25 miles northwest of the subject property while the Orange County Airport is located about 27 miles to the west. In addition, the County has extensive trucking corridors along the previously referred to interstates, highways, and state freeways. The Inland Empire is the major hub in Southern California for logistics with major distribution centers located _________________________________________________________________________________________________________ Appraisal Report
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along these interstates and freeways which are supplied from both the Los Angeles and Long Beach ports.

Population
The County has experienced population growth for several decades and is anticipated to continue to do so in the foreseeable future. Per the California Department of Finance, January 1, 2025, the County population was 2.495 million, representing a one- year increase of 0.2 percent. This compares to an average annual growth rate over the previous four years of about 0.7 percent, and an average annual growth rate of approximately 2.3 percent for the previous twenty -year period. It should be noted however, that California’s overall population decreased between 2020 and 2022 (during COVID) with the current population still not back up to the peak of 2020. Current State projections for Riverside County suggest the population is expected to reach approximately 2.533 million by 2030, indicating an average annual increase of approximately 0.3 percent over the next five years. It should be noted that the forecasted population for 2030 was recently reduced from an estimated 0.7 percent annual growth rate to 0.3 percent in the past year.

Economy
The U.S. economy in the past five years has experienced challenging times due to reactions from the COVID disruption and changes in the federal administration. These economic challenges include significant inflation, increasing interest rates, banks’ instability, the unknowns on tariff agreements and reaching an agreement on the debt ceiling. During COVID, the Federal, State, County and City Governments (“Governments”) originally shut down non-essential businesses and areas where social gatherings occur in order to slow the spread of the virus. This created a strain on small and large businesses alike. Restaurants and hotels were hit hard and travel reduced drastically as citizens were urged to stay home. Layoffs occurred with reports of 40 million people filing for unemployment the first few months of the pandemic. The Governments attempted to curtail the job losses and hardships with the approval of over $5.6 trillion in COVID relief to our nation. In addition, the Federal Reserve Board _________________________________________________________________________________________________________ Appraisal Report
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(“Board”) reduced interest rates and started quantitative easing by buying bonds. This legislation helped shore up the U.S. economy; however, due to the significant amount of new money introduced into the economy, inflation began occurring at a rate not seen for 40 years. In June 2022 the national inflation rate hit a peak of 9.1 percent with the current rate at 2.7 percent. This compares to a 1.4 percent annual inflation rate for 2020 and an average of 1.74 percent annual rate for the previous ten years. Whether it is a result of world turmoil, supply chain issues due to COVID or from the additional money entering the economy, inflation has been hitting Americans hard.

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

5.25 – 5.50 percent from September 2023 until August 2024 when small decreases occurred with the rate at 4.25 – 4.50 percent in January 2025 followed by a September 2025 decrease of 0.25 percent with the current rate at 4.0 – 4.25 percent. While the eleven increases appeared to help slow inflation, the quick, significant increases strained bank balance sheets. Three major banks failed in early 2023 with the government taking unprecedented action to help shore them up. In the notes from the most recent Board meeting in September 2025, they discussed there could be additional small rate decreases this year. While the economy is struggling, the Board does not want to decrease the rate too much, partly due to uncertainties about possible future inflation due to the tariff negotiations. Most analysts are still predicting two small decreases in the FFR by the end of the year which is what Wall Street says is “built-in” to current market rates. The FFR increases which occurred between March 2022 and August 2023, increased a typical 30- year fixed mortgage rate from 2.98 percent as of November 10, 2021, to the high of 7.79 percent as of October 2023; however, the rate has dropped to

6.3 percent as of October 9, 2025 (per Federal Reserve Economic Data- St. Louis) with mortgage rates generally between 6.0 and 7.0 percent since December 2023. This steep increase which occurred has significantly affected the real estate market. The first -time homebuyer pool grew up thinking interest rates were always sub- four percent and are still reeling from shock over the current 6. 0-7.0 percent rates. In order to combat the _________________________________________________________________________________________________________ Appraisal Report
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unaffordability of these higher rates, many homebuilders are “buying down” the mortgage rates in order to keep new home sales going. This will be discussed further in the Riverside County Housing Market section later within this report.

The COVID disruption to the economy also caused extreme volatility in the stock market with the Dow Jones Industrial Average (“DJIA”) dropping from 29,398 in February 2020 to 19,174 in March 2020, a drop of 37 percent. The Government interventions resulted in a bounce back in the DJIA to 27,111 by June 2020 with the stock market then climbing up to a peak of 36,799 in January 2022. In February 2022, Russia began invading Ukraine which caused volatility in world economics followed by U.S. inflation resulting in a 20 percent drop to a low on September 30, 2022 (28,150) with a bounce back to between 33,000 and 34,000 throughout the majority of 2023. On October 7, 2023, Israel declared war on Hamas which added to the strain causing another drop of around eight percent with the low on October 27, 2023, to 32,417. The FFR rate increases began helping to stabilize the economy (reducing inflation) to a point where analysts began predicting some decreases in the FFR in 2024. This occurred in late 2024 with a one- half rate reduction followed by two quarter point reductions which buoyed the stock market with a new high of 44,910 which was reached in late November 2024. Since then the DJIA has bounced generally between 38,000 and 44,000 as the new administration has created some uncertainties due to tariffs among other issues with the October 9, 2025 rate at 46, 395. Current concerns on the U.S. economy include the nation’s debt, global wars, tariff uncertainties and the debt limit which can only be increased through government approvals. The current partisanship in our government caused a stand- off in increasing the debit limit which has been in danger of being reached numerous times with several temporary deals being reached, however, no permanent agreements at this time.

The significant increase in mortgage rates between 2022 and 2023 is just one part of the puzzle affecting the impact of new housing on the broader economy. Additional risks include homebuilders trying to find balanced inventory levels, supply chain issues, both wage and price increases, unknown tariffs on building materials, construction workers _________________________________________________________________________________________________________ Appraisal Report
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immigration status and persistent inflation. Over the past 25 years, the Inland Empire economy saw significant cycles with home prices almost doubling from 1995 to 2005, then falling by over 50 percent during the Great Recession, taking prices back to 2002 levels in 2011. Home values appeared to hit bottom in 2009 then remained essentially flat for two to three years with the majority of the Inland Empire housing market seeing an improvement beginning in mid-2012. Contrary to homebuilder’s original thoughts of a slowdown due to the pandemic, new home buyers stepped up in the spring of 2020 and new home sales were significantly higher during the second half of 2020 versus the previous year and continued extremely strong throughout 2021. This exceptional activity in new home sales was the one bright spot in the COVID recession and is thought to be due to several factors, including: a tight supply of resale homes; historically low interest rates; millennials finally buying homes; and the work from home factor which began during the pandemic and allowed residents to live in more suburban areas without long commutes. As rates began increasing in early 2022, there was a significant slowdown in home sales within the Inland Empire, with year -over-year decreases in sal es as of October 2023 of almost 10 percent. The high mortgage rates significantly slowed existing homeowners from moving. The limited availability of existing homes on the market has resulted in new homes capturing a much larger share of the total home sales; however, new home sales are also down.

While most jobs have come back, job losses were significant during the COVID recession as the Nation’s unemployment rate went from 3.5 percent in February 2020 to 14.4 percent in April 2020 with decreases through the fall season of 2020. Since that time the national unemployment rate generally ranged between 3.5 percent and 4.5 percent between December 2021 and today with the August 2025 National unemployment rate at 4.5 percent (Employment Development Department, not seasonally adjusted). The unemployment rate for the MSA was estimated at 6.1 percent (as of August 2025, per the Employment Development Department). This reflects a decrease from the peak during the Great Recession of 15.1 percent in 2010 and a decrease from the peak during COVID of 14.9 percent. As of August 2025, Riverside County’s unemployment rate was

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unemployment rate for the MSA of 6.1 percent is slightly higher than the California rate at 5.8 percent and higher than the August 2025 National rate of 4.5 percent. Below is a table comparing Riverside County’s unemployment rate to the unemployment rates of the surrounding counties as of August 2025.

Jurisdiction As of Unemployment Rate*
Los Angeles County Aug-2025 6.3%
Riverside County Aug-2025 6.3%
San Bernardino County Aug-2025 5.9%
Orange County Aug-2025 4.6%
San Diego County Aug-2025 5.0%
Source: State of California E.D.D.; *Not Seasonally Adjusted

The latest UCLA Anderson Forecast (“Forecast”) was issued June 18, 2025, and in it, they predict a sobering view of the economic landscape for both the United States and for California. They believe their forecast is subject to numerous risks given the levels of economic and geopolitical uncertainty. As the trajectory of tariffs remains unpredictable, tensions between the U.S. and China have increased. As tariff uncertainty shook financial markets, a rapid sell -off in the Treasury market prompted the administration to pause most of the newly announced tariffs. These uncertainties are causing volatility in most markets. Within the national outlook, while the spring of 2025 brought robust job growth and low unemployment claims, the momentum is not expected to last. The forecast believes the U.S. unemployment rate will rise to 4.6 percent by year- end (currently at 4.5 percent) and that inflation will increase to exceed 4.0 percent in the second half of 2025 (latest inflation rate shows CPI rose 2. 9 percent year-over-year for August and 3.1 percent – less food and energy - for the same period). Finally, they believe Real GDP growth, which contracted slightly in the first quarter or 2025, will slow to near zero in the second half of the year with only a modest recovery anticipated through 2027.

The UCLA Forecast for California is typically more positive than the overall Nation, however they predict the California economy to grow slower than the U.S. economy in 2025 with several quarters of negative job growth. California is typically stronger due to technology, durable goods manufacturing, entertainment and logistics growth; however, these sectors are currently either stagnant or contracting. They believe that health care, _________________________________________________________________________________________________________ Appraisal Report
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education and government, which supported growth in the State in 2024, have all likely reached their peak. The housing sector is also under pressure with deportations reducing the construction workforce and the uncertainty on tariffs and high interest rates constraining new development. The unemployment rate is expected to peak at 6.1 percent this year (currently at 5. 8 percent) with the averages for 2025, 2026 and 2027 predicted to be 5.8 percent, 5.6 percent and 4.4 percent respectively. The high interes t rates, shortage of construction labor and the rebuilding of damaged and destroyed homes (due to fires) lowered California’s residential construction forecast from March with 102,000 new homes predicted for 2025 and 115,000 per year by the end of 2027.

This compares to estimates of 155,000 new homes estimated in 2025 at their June 2024 Forecast.

One unexpected bright spot which occurred during the COVID pandemic was the increase in the sales of new homes as millennials finally entered the housing market, renters wanted their own space, and the work from home factor allowed workers to live further from their office. As interest rates rose in 2022, existing homeowners didn’t want to give up their sub -four percent mortgages, so existing home listings slowed substantially which further increased new home sales. While new homes historically captured 10– 13 percent of total home sales; over the past few years, new homes captured 25-30 percent of total home sales. However, as economic uncertainty began in the spring of 2025, nationwide new home sales dropped 14 percent (from April to May) as homebuyers are concerned about high home prices, elevated mortgage rates and economic concerns. This has increased the standing inventory of new homes making many builders pull back on future development. While California and especially Southern California had been isolated from the new home slowdown due to the shortage of housing supply in the area, existing home listings are now increasing which is giving buyers more choices.

As a final indicator of overall economic activity for the region, we have reviewed the rise and fall of TEUs (Twenty-foot Equivalent Units – i.e., containers) being processed in the local ports. This is especially important for the Inland communities, as it represents much _________________________________________________________________________________________________________ Appraisal Report
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of the growth in development of West Coast distribution centers and warehouses in the Inland Empire linked to supply -chain nodes in the Pacific Rim. The chart below shows TEU activity at the Port of Long Beach. Generally, there had been increases since 2009 except for slight dips in 2016, 2019, 2022 followed by an over 12 percent dip in 2023 due to cooling consumer demand. The calendar year 2024 saw an over 20 percent increase which wiped out the negative growth years and put TEU’s back on a more normal growth trend. Thus far in 2025 total calendar year TEUs are showing an 8.3 percent increase over the first eight months of the year. This increase was anticipated as companies ordered increased inventory ahead of the proposed tariffs.

Government

A Board of Supervisors oversees the County as the governing body of the County, certain County special districts, and the County Housing Authority. The Supervisors enact ordinances and resolutions, adopt the annual budget, approve contracts, and appropriate funds, determine land use zoning for unincorporated areas, and appoint certain County officers and members of various boards and commissions. The Board of Supervisors is elected from five different districts within the County.

Education
The subject area is served by the Lake Elsinore Unified School District which operates 13 elementary schools, two K-8 schools, four middle schools and four high schools along with a continuation high school, one adult school and one academy. Higher education is available within an hour’s drive at the University of California campuses at Los Angeles,

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Riverside and Irvine or California State University campuses in San Bernardino, San Marcos, Fullerton, and Pomona along with several additional private colleges. The closest public community college is Mount San Jacinto College along I -215 in Menifee, and the Riverside Community College District with Riverside City College, Moreno Valley College and Norco College.

The subject property is served by Alberhill Elementary School (adjacent to the north of the model complex ), Terra Cotta Middle School ( about one mile southwest), and Lakeside High School (about two miles south).

Conclusion
Population in the County has increased over the past 30 years with predictions for continued population growth, even though the State lost population for a few years. The Nation’s economy is facing some volatility due to the uncertainties of tariffs and immigration issues (affecting the labor force) along with the Russian/Ukraine and Isreal/Palestine conflicts. Higher interest rates and high inflation affected Americans over the past three years. One bright spot had been sales of new homes, which stayed strong despite interest rate increases. However, new home sales are now slowing with builders pulling back on future development. While sales of new homes are down, they are still occurring as builders offer concessions and rate buy -downs to help the consumer s.

Current concerns for the Inland Empire economy include the possible tariffs and how they will affect pricing, the high prices of homes, elevated interest rates, the construction work force issues along with the current unrest around the world, all which are creating volatility in both local and global financial markets. In conclusion, the County is expected to continue to grow in population due to its Southern California location, the availability of land, and the relatively lower land and housing prices in comparison to adjacent Orange, Los Angeles, and San Diego Counties.
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LAKE ELSINORE AREA MAP

CITY OF LAKE ELSINORE DESCRIPTION

The subject property is located in the northernmost portion of the City of Lake Elsinore (“City”), east of I-15 at the southeast corner of Nichols Road and Alberhill Ranch Road.

Lake Elsinore is approximately half -way between the cities of Los Angeles and San Diego, about 25 miles east of the Pacific Ocean. Downtown Riverside, which houses the County seat, is approximately 20 miles north of the City. The City is situated along I -15 at the intersection of State Route 74 and encompasses an estimated 41 square miles. It is surrounded by unincorporated County lands to the north and east, the City of Wildomar to the south, and the Ortega Mountains and the Cleveland National Forest to the west.

History
The Luiseno Native Americans are the earliest known inhabitants of the Elsinore Valley, prior to when settlers came in the early 1800s due to the region’s natural springs which were said to have healing qualities. In the 1850s, the area housed a stagecoach stop for the Butterfield Overland Mail route between the Temecula station (20 miles south) and the Temescal Station (10 miles north). The rich and fertile farmlands and natural resources of clay, coal, sand and gravel within the Elsinore Valley kept peopl e in the area. At incorporation in 1888 the City was originally in San Diego County; however, became part of Riverside County upon its creation in 1893. The City was named Elsinore after a city in Denmark which is featured in the Shakespeare play, Hamlet. In the 1920s and 1930s, the area became a Hollywood getaway with many stars building homes in the hills surrounding the Lake.

Lake Elsinore (the “Lake”) was originally known as Laguna Grande and is the largest natural lake in Southern California. The Lake is situated at the lowest point within the 750-mile San Jacinto River watershed with headwaters from the western slopes of San Jacinto Peak and Lake Hemet. Lake Elsinore levels are at 1,244 feet above sea level with a volume of 30,000-acre feet that use to change substantially prior to federal grants to prevent the flooding and ebbing of the lake. The largest flooding came in the 1930s when the Lake rose from 8,000-acre feet to 92,000-acre feet. In 1951 the Lake dried up _________________________________________________________________________________________________________ Appraisal Report
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and remained dry for about 10 years. In 1981 and 1983 the El Nino rains again flooded the area and in 1984 the City was successful in obtaining Federal grants for the major project to regulate the Lake and end the cycle of flooding and drying. Now at 1,255 feet, the Lake spills into the outflow channel known as the Temescal Wash, flowing northwest along I-15 to Temescal Creek which dumps into the Santa Ana River near the city of Corona and flows to Orange County and out into the Pacific Ocean.

Population
The City had enjoyed rapid population growth in the mid- 2000’s, which altered the appearance of the City from a small lakeside town of 3,800 people in 1976, to a bedroom community of upper middle-class professionals. From 2000 to 2008 the City was the 12th fastest growing city in the State going from 28,928 residents in 2000 to 51,821 residents in 2010, suggesting an average annual increase of 6.0 percent. Between 2010 and 2015 the city increased to 59,142 residents (average annual increase of 2.67 percent), with a most recent January 2025 population estimate of 73,783 per the Department of Finance, which represents an annual increase of 1.0 percent since January 2024. This compares to the overall Riverside County growth of 0.2 percent during the past year. The significant growth between 2000 and 2010 includes the residential boom prior to the Great Recession. The population forecast for 2030 per the City of Lake Elsinore website shows approximately 80,700 which suggests an average annual growth of approximately two percent over the next five years. The slower growth in the City over the past year was partially due to limited availability of new homes for sale. More recently, new home supply int the city has grown substantially, from only two new home communities selling in early 2022, to ten currently selling as we enter the fourth quarter of 2025 (per Ryness Report dated September 28, 2025) . This increased housing supply has and will continue to affect the population growth. Lake Elsinore also typically has positive population growth due to the convenient access along the I-15 corridor providing access to the employment centers in Riverside, Orange, Los Angeles, and San Diego Counties.

The subject is currently four of ten actively selling communities in the City of Lake Elsinore. Alberhill Ranch (subject), is currently selling Fairfield, Linden and Ridgeline by _________________________________________________________________________________________________________ Appraisal Report
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Pulte Homes along with Crestly by Centex (also owned by Pulte). KB Home is selling their Carrera and Villa Real communities at Terracina, just south of the subject property, along with their Crimson Hills neighborhood. DR Horton is selling their Laguna Pointe community, an attached project that recently opened for sale. Meritage Homes is selling Highland (and previously its sister project Hilltop, which recently sold out) at their Nichols Ranch master plan and TriPointe Homes is selling their Echo Highlands project. For many years previously, Lake Elsinore featured several actively selling new master planned communities including Canyon Hills which sold out in early 2020, and Summerly, which is located on the south side of the Lake and sold out in 2021.

Summerly, including The Links golf course consists of a total of 700 acres, was proposed for over 1,600 residential units and is now fully built out. Canyon Hills includes approximately 4,300 residential units and is also fully built out.

Economy
The City of Lake Elsinore has enjoyed industrial and commercial development along the I-15 Corridor including the Lake Elsinore Outlet Center at Nichols Road which was opened in the 1990s as one of the first Outlet Malls in Southern California. The City has been promoting its economic platform by becoming more business friendly. The City website shows an estimated average household income of $124,000 (lakeelsinorebusiness.com), and a median income of $96,527 in 2023 (most recent data available, datausa.io). This compares to a 2023 median household income of $89,672 for Riverside County, and $96,334 for the state (most recent data available, datausa.io).

Per the City of Lake Elsinore’s 2024 Comprehensive Annual Financial Report (fiscal year ending June 30, 2024), the top employers were as reported below.

Summary of Major Employers
Employer No. of Employees
Lake Elsinore Unified School District 2,688
M & M Framing 512
Stater Bros (3 locations) 346
Costco 323
Walmart 290
Lake Elsinore Hotel & Casino 246
Riverside County (Dept. of Social Services) 217
EVMWD 180
Home Depot 156
City of Lake Elsinore 163
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Entertainment
While Lake Elsinore served as a get-away for the movie industry in the 1920s, the area also began emerging as an entertainment/sports area when it hosted Olympic teams for training along with high- speed boat racing on the Lake. In 1964 the Skylark Airport (located southeast of the subject) emerged as a world class skydiving drop zone due to the thermals from the surrounding mountains. This is still one of the most prominent drop zones in Southern California. The Lake Elsinore Motorsports Park for off -road racing is located directly east of the Airport. In 1991 the Lake Elsinore Outlet Center opened boasting 100 outlets (currently 38 stores) and in 1994 Diamond Stadium was constructed which is the home of the Lake Elsinore Storm , an affiliate of minor league baseball.

Diamond Stadium is located adjacent to the master planned community of Summerly, southeast about five miles from the subject. The major commercial centers are along I- 15 at Central Avenue (Highway 74) with Walmart, Costco, Home Depot and Lowes as anchor tenants.

Transportation
Interstate 15 is the major arterial with access to the City, with State Route 91 approximately 20 miles north and I -215 about 10 miles south. I -15 provides access to State borders to the north in Nevada and to the south where it merges with I -5 before going into Mexico. State Route 91 (20 miles north on I-15) provides freeway access into Orange and Los Angeles Counties to the west and to San Bernardino County to the east.

I-215 provides northerly access connecting to State Route 60, which provides access to the west into Los Angeles and to the east where it merges with I-10 and provides access to the Arizona state border. The nearest freeway access points to the subject property is the I-15 Nichols Road on/off ramp, about one mile northeast of the subject. State Route 74 to the west is a winding road through the Ortega Mountains (also known as Ortega Highway west of Lake Elsinore) that provides a more direct access into South Orange County, which is located approximately 20 miles southwest.

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Schools
The subject property is served by the Lake Elsinore Unified School District (LEUS D) which has 13 elementary schools, two K -8th grade schools, four middle schools along with four high schools and one continuing education high school. In addition, LEUSD has a child development pre-school and two alternative schools. The subject will be served by Alberhill Elementary School (adjacent to the north), Terra Cotta Middle School (about one mile west) and Lakeside High School (approximately two miles southwest)

Conclusion
In summary, the City of Lake Elsinore experienced above average growth over the past 20 years, however, experienced a slowdown in 2022 which is thought to be due to the limited availability of new homes. Since then, population growth has picked up and new home availability has increased as there are currently ten actively selling new home communities in the City. While the region as a whole has experienced a slowdown, Lake Elsinore’s housing market is currently healthy and the subject is being well receive d in the marketplace at this time. Unknowns include the effect of a slowing U.S. and global economy. The City’s abundant recreation, expanding employment opportunities, location, reasonable land and home prices and the availability of land for development combine to make the City a prime area for future growth.

ALBERHHILL RANCH SPECIFIC PLAN / SURROUNDING AREA

The original Alberhill Ranch Specific Plan 89-2 was approved in 1989 and included 1,853 acres under three ownerships. Subsequently, the Murdock ownership processed Amendment No. 1 of Specific Plan 89-2 which pertained to about 511 acres which they owned in June 1992. Subsequently Vesting TTM’s 28214 (covers subject plus additional lands) and 30836 were approved on portions of the 511 acres in January 2004. In December 2005, there was an administrative amendment approved while on November 25, 2005, Amendment No. 2 to Specific Plan 89-2 was approved along with the approval of vesting TTM 35773. Amendment No. 2 is the controlling land use document for the subject property and additional lands. Amendment No. 2 of Specific Plan 89- 2 pertains to 511 acres entitled to up to 1,819 dwelling units which includes the subject property and additional lands. Amendment No. 2 to Specific Plan 89-2 is shown below with the subject two planning areas outlined in yellow dashes.

The subject property is known as Sub Area F & G of Amendment No. 2 of Specific Plan 89-2 which have entitlements for 413 residential lots, however per the recorded tract map, they have subdivided the area into 344 single-family detached residential lots. The site is bounded by Alberhill Ranch Road to the northwest beyond which is the existing

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portion of Alberhill Ranch which was developed in the 2010s, Nichols Road to the northeast beyond which are vacant lands and I-15, Terra Cotta Road, to the east beyond which are vacant parcels interspersed with older existing housing along with an Edison substation and the new master planned community of Terracina, a vacant parcel and a portion of Terracina currently being developed to the southeast, and, vacant lands beyond which is Apple Blossom Lane and existing housing to the south.

Per Amendment No. 2 of the 89-2 Specific Plan, the subject irregular-shaped 118 acres are designated R-SF (Residential Single Family allows for a density of up to 3.8 dwelling units per acre and R -M (Medium Residential) which allows for a density of up to 3.6 dwelling units per acre. Per recorded Tract Map 28214-9 the site totals 134.06 acres and is subdivided into 344 single family detached lots with a minimum size of 6,000 square feet, or an overall density of 2.57 dwelling units per acre with the majority of the lots are significantly larger than 6,000 square feet. The site was extremely hilly which has provided for significant views on approximately one-quarter of the lots.

Access to Alberhill Ranch is considered to be good with access from the north exiting I- 15 at Lake Street, south about 1.25 miles to Nichols Road, east about one-third mile to Alberhill Ranch Road. The subject is at the southeast corner of Nichols Road and Alberhill Ranch Road with the model complex near the intersection. Additional access is via I-15 from the south, exit Nichols Road and head west about 1.5 miles to Alberhill Ranch Road. At the Nichols Road exit on I-15 is the Lake Elsinore Outlets, a large outlet shopping center. The outlet center includes national brands such as Gap Outlet , Levi’s Outlets, Oneill, Lids, Guess Factory, Van’s, The Children’s Place, Carter’s and Bath and Body Works along with several local smaller in- line stores and restaurants along with some interspersed offices and church locations . Neighborhood shopping is available within 1.5 miles along Lakeshore Drive with two shopping centers, one anchored by Stater Bros. Markets and the other by Albertson’s Market. More regional shopping is available at Central Avenue and I -15 about 2.5 miles away with three major shopping centers with anchors of Walmart, Costco and Lowes and a Home Depot.

On March 22, 2022, the City Council of the City of Lak e Elsinore adopted a Resolution of Intention to form Community Facilities District No. 2022-1 (Alberhill Ranch) (“District”).

At the time of formation, Lake Elsinore CFD No. 2022-1 comprised five parcels totaling 138 gross acres and was encompassed by Tract Map 28214 -9 proposed for 344 residential lots. According to the CFD Report (“Report”), the types of Facilities that are proposed to be financed by the proceeds from CFD No. 2022-1 consist of the construction, purchase , modification, expansion, rehabilitation and/or improvement of drainage, library, park, roadway, traffic, administration and community center facilities, marina and animal shelter facilities, and other public facilities of the City of Lake Elsinore, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended (“City Facilities”) and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, and construction management and supervision for such Facilities. In addition, Incidental Expenses to be financed by the District include the cost of engineering, planning and designing the Facilities, all costs including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District, and any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities

The cost of Facilities, at time of the CFD Report were estimated to be $11,230,000 based on fiscal year 2022-23 dollars. The costs, as shown in the Report are as follows:

Description Total
I - Eligible City Fees & Facilities
A - City of Lake Elsinore Fees $2,324,174
B – City of Lake Elsinore Facilities $7,318,476
Total Eligible Facility/Fees $9,642,650
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Incidental Financing Costs $1,587,350
Total Funded by Bond Proceeds $11,230,000
II – Unfunded Eligible Facility/Improvement Fees
A – City of Lake Elsinore Fees $0
B – City of Lake Elsinore Facilities $4,576,318
Total Unfunded Eligible Facility/Improvement Fees $4,576,318

According to the Rate and Method of Apportionment, the assigned Special Tax for CFD No. 2022-1 is shown in the table below. It should be noted that all amounts are in 2022- 2023 fiscal year dollars.

Land Use Bldg Sq. Footage Special Tax
Single Family Residential Less than 2,000 SF $1,280
Single Family Residential 2,000 SF to 2,150 SF $1,363
Single Family Residential 2,151 SF to 2,300 SF $1,446
Single Family Residential 2,301 SF to 2,450 SF $1,529
Single Family Residential 2,451 SF to 2,600 SF $1,612
Single Family Residential 2,601 SF to 2,750 SF $1,695
Single Family Residential 2,751 SF to 2,900 SF $1,778
Single Family Residential 2,901 SF to 3,050 SF $1,861
Single Family Residential 3,051 SF to 3,200 SF $1,944
Single Family Residential Greater than 3,200 SF $2,027
Multli-Family Property N/A $8,175/Ac
Non-Residential Property N/A $8,175/Ac

Per the latest sources and uses for the Lake Elsinore CFD 2022-1 bonds (dated October 17, 2025), the project fund deposit is anticipated to be $8,779,700 with $889,935 in Debt Service Reserve Fund and $504,300 in costs of issuance and underwriters discount (all amounts subject to change). The boundary map showing Lake Elsinore CFD No. 2022- 1 is shown in the Addenda.
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SUBJECT PROPERTY DESCRIPTION

The subject property consists of a portion of the master planned community known as Alberhill Ranch which includes four neighborhoods, Crestly by Centex Homes and Ridgeline, Fairfield and Linden by Pulte Homes. The four neighborhood site plans are shown in the Addenda while below is a copy of Tract Map 28214-9 which covers the entire subject property portion of Alberhill Ranch. The property description begins on the following page.

Location: Southeast corner of Nichols Road and Alberhill Ranch Road, City of Lake Elsinore.

Legal Property
Description: The subject property is known as Lots 1- 344 of Tract 28214-9 with each neighborhood identified as follows:

Crestly: Lots 1-6, 9, 12-15, 18-32, 88-92, 99-112, 121-142 and 154- 163 of Tract Map No. 28214-9.

Ridgeline: Lots 16- 17, 207-227, 232-235, 237-240, 246-265, 267- 292, 308 and 339-344 of Tract Map 28214-9.

Fairfield: Lots 7-8, 33-87, 93-98, 113-120, 143-153 and 164-168 of Tract Map 28214-9.

Linden: Lots 10-11, 169-206, 228-231, 236, 241-245, 266, 293-307 and 309-338 of Tract Map 28214-9.

Property Owner: Individual Homeowners as to Lots 18 -43, 82-96, 98-112, 114-123, 125, 128, 134-135, 137-186, 189, 191, 218-221, 224-283, 285, 305- 322, 324-332, 334-339 and 341- 344 of Tract Map 28214-9 . Pulte Home Company LLC as to Lots 1-17, 44-81, 97, 113, 124, 126-127, 129-133, 136, 187-188, 190, 192-217, 222-223, 284, 286-304, 323, 333 and 340 of Tract Map 28214-9.

Assessors
Parcel Nos.: 389-790-001 thru 042; 389 -800-001 thru 023; 389- 801-001 thru 029; 389- 810-001 thru 030; 389- 811-001 thru 010; 389- 812-001 thru 016; 389- 820-001 thru 006; 389- 821-001 thru 006; 389- 822- 001 thru 034; 389- 823-001 thru 008; 389- 830-001 thru 021; 389- 831-001 thru 017; 389- 832-001 thru 010; 389- 840-001 thru 022; 389-841-001 thru 052;
Three-Year
Sales History: Per representatives from Pulte Homes, they purchased the property over three years ago. 224 homes have closed to individual homeowners between April 24, 2024, and October 6, 2025. There are an additional 31 homes in escrow (including four pending sales) which are due to close upon completion.

Size and Shape: The subject property is irregular in shape. Per recorded Tract Map 28214-9, the gross acreage is 134.06 acres and includes 344 residential lots and 55 lettered lots, with the lettered lots being open space, parks, setback areas and slopes. Tract Map 28214 -9 includes over 35 acres of open space, slopes, setback areas along with two small neighborhood parks, one being about one- half acre and one about three-quarters of an acre.

Zoning: The subject property is covered by City of Lake Elsinore Specific Plan 89-2 which is also known as the Alberhill Ranch Specific Plan.

Per the Specific Plan the subject is shown as R-SF (single family residential with a density of 3.8 dwelling units per acre and R -M _________________________________________________________________________________________________________ Appraisal Report
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(single family residential with a density of 3.6 du per acre. Per the City’s Zoning and General Plan Map, the site is shown as SP for Specific Plan.

Entitlements: The subject property is entitled by virtue of the previously summarized Alberhill Ranch Specific Plan (No. 89-2) which was originally adopted by the City Council on August 28, 1989 followed by the Adoption of an Amendment to the Specific Plan in June 1992, two Vesting Tentative Tract Maps which were approved January 13, 2004, an Administrative Amending approved on December 27, 2005 and Specific Plan Amendment No. 2 wh ich was approved
November 25, 2008. The Specific Plan covers the subject property and additional lands and allows for 1,485 residential units with the possibility of an additional 334 units (Multi -Family Overlay – not on the subject property) which would bring the total to 1,819 residential units. The subject property includes 344 of the 1,485 residential units. Tract Map 28214-9 was recorded on the property on November 23, 2021, dividing the subject 138+ - acres into 344 residential lots. The lots have a minimum size of 6,000 square feet however the majority of the lots are in the 7,200-8,000 square foot range, with some larger . The hilly topography allows for views on many of the lots.

Homeowner’s
Association: Per Pulte representatives, the HOA Fees within the subject portion of Alberhill Ranch a re estimated to be between $180 to $190 per month at build-out.

Topography: The subject property was hilly, sloping, undeveloped land. The site is along the southeast side of Alberhill Ranch Road, generally northwest of Terra Cotta Drive. The hilly topography allows for many good views from homesites. There are internal streets complete and two small parks which have been developed within the parcel. It appears there is an engineered street drainage system into a storm drain system which allows for water run-off. The site has been mass graded into 344 single-family det ached lots. The lots are each generally level with slopes between the various streets and lots where needed, some providing good to excellent views.

Soils Condition: We have reviewed a Geotechnical due diligence report on the Alberhill Ranch Project prepared by Leighton and Associates, Inc. of Temecula and dated January 14, 2022. The report states at time of report, the site had been previously rough graded (in 2006, prior to the Great Recession) for a different configuration of homes. The Report addressed the current 344 proposed homes and concluded that the overall site appears suitable for the intended residential use, provided the recommendations included within the report are properly incorporated during the design and construction phases of _________________________________________________________________________________________________________ Appraisal Report
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development. There was concern that there may be oversize rock which may require special handling. The grading is now complete which alleviates the oversize rock concern. It should be noted that the appraiser is not a soils expert and if questions arise, they should be addressed to the appropriate parties.

It is an assumption of this appraisal that the soils are adequate to support the highest and best use conclusion and that all recommendations made within all reports were or will be adhered to during construction.

Seismic
Information: Per the above referenced Geotechnical Due Diligence report, the site is not located within a currently designated Alquist -Priolo Earthquake Fault or County of Riverside Fault Zone and no evidence of active faulting was observed on the site. The appraiser is not an earthquake expert and refers the reader to both California and Riverside County for more detailed information.

Environmental
Concerns: We have not received an environmental report to review. Within the Approved Specific Plan, it refers to the associated Environmental Impact Report (SCH 88090517) which was approved concurrently with the Specific Plan.

It is an assumption of this appraisal that the subject property is free and clear of any environmental issues which would slow or thwart development of the site, that all recommendations contained in any such reports were adhered to. This is suggested by appropriate approvals provided by the C ity throughout planning and construction.

Flood Information: Per FEMA Map 0606 5C2009G dated 8/28/2008 the subject within an area of minimal flooding and is not located within a Federal Emergency Management Agency (FEMA) designated flood zone.

Fire Hazard: From the CalFire Fire Hazard Severity Zone Map, the subject property is within a Local Responsibility Area and their recommendation appears to be for a designation of a Very High Fire Severity Zone which requires certain construction materials. It is an assumption of this appraisal that the requirements have been included in the construction of the homes. This is suggested by the City approval of the house plans within Alberhill Ranch.

Easements and
Encumbrances: We have reviewed a Preliminary Title Report prepared by First American Title Company as Order Number NHSC-6814219 which covers Tract Map 28214-9 dated January 31, 2023. The exceptions are as follows.

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Item Nos. 1 (report was to follow, however we did not receive), 2 and 3 refer to taxes and assessments, including supplemental taxes. It is the appraiser’s understanding that the subject property is also located within City CFD 2005 -2, CFD 2015- 1 (Safety), CFD 2015-2 (Maintenance Services) and LEUSD CFD 2017- 1 (School District). Item Nos. 4-7, 9-11, 13, 15, 17-20, 23-24 and 26 refer to easements for public utilities, roads, HOA access and temporary operations and maintenance easements for the adjoining land- owner. Item No. 8 is in regard to an agreement between adjoining landowners. Item No. 12 refers to the development agreement. Item No. 14 pertains to CC & Rs while Item No. 16 is for a cooperative agreement. Item No. 21 refers to a drainage acceptance easement.

Item No. 22 is regarding abutter’s rights of ingress and egress. Item No. 25 refers to items disclosed on recorded Tract Map 28214- 9.

Item No. 27 is in regard to water rights. Item No. 28 pertains to the public’s rights within any public road, street, alley or highway.

It is an assumption of this appraisal report that the subject lands are free and clear of any liens and/or encumbrances other than Lake Elsinore CFD 2022-1. This is suggested by the approval by the City for development of the 344 lots.

Utilities: All normal utilities will serve the subject property by the following companies:

Electrical: Southern California Edison Company
Natural Gas: The Gas Company
Sewer/Water: Elsinore Valley Municipal Water District
Schools: Lake Elsinore Unified School District

Streets/Access: Access to the subject project is via I-15 to Lake Road, southwest

1.25 mile to Nichols Road, east 0.25 mile to Alberhill Ranch Road .

The subject is at the southeast corner of Nichols Road and Alberhill Ranch Road. The main entrance to the models is via Brianna Court and Alberhill Ranch Road. Additional access is via the Nichols Road exit from I-15 west about 1.25 miles to Alberhill Ranch Road.

I-15 is a major north/south freeway providing access to international borders both north and south.

Lake Street is the first offramp providing access into Lake Elsinore from I-15 if traveling south. When entering the City of Lake Elsinore, Lake Street becomes Grand Avenue one of the main arterials through the northern portion of the City.

Nichols Road has on/off ramps at I -15. To the east is the new development of Nichols Ranch beyond which Nichols Road
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becomes El Toro Road. To the west Nichols Road provides access to the communities of Terracina and Alberhill Ranch and connects with Lake Street, a main entrance into the City of Lake Elsinore

Alberhill Ranch Road is the main access into the subject portion of Alberhill Ranch, beginning at Nichols Road and winding around to Lake Street.

Internal Streets within the project include Brianna Court, Lilah Circle, Douglas Circle, Ladrillo Street, Bentwood Court, Empressa Circle, Pioneer Lane, Myrtle Street, Merrifield Street, Hudson Lane, Madonna Circle, Larchwood Lane and Lynn Lane. Access into the northern portion of the subject site from Alberhill Ranch Road is via Brianna Court and Ladrillo Street while access into the southern portion is from Alberhill Ranch Road via Merrifield Street or Hudson Lane.

Current Condition: The subject property has been developed into 344 single-family detached lots. All internal streets are in place and paved with utilities stubbed to each lot. The pool and social club (which adjoin the subject property) are complete and there are two small
neighborhood parks which are complete within the subject portion of Alberhill Ranch. Two of the four communities are positioned with the majority of the view lots. The Linden and Fairfield communities have good to excellent views on about one- half of their lots. Out of the total 344 proposed homes 259 have houses that are over 95 percent complete with 224 closed to individuals. There are an additional 17 houses under construction (under 95 percent complete) and 68 remaining lots.

Costs to Complete: Per Pulte representatives there are $ 2,517,000 in remaining land development costs and $171,603 in remaining land development fees. Lake Elsinore CFD 2022- 1 will be funding $97,267 of these fees. It is a hypothetical condition of this report that Lake Elsinore CFD 2022-1 is funded, therefore, we are assuming these fees are paid which leaves $74,336 in remaining fees that the builder is responsible for. This suggests a total of $2,591,336 in remaining land development costs and fees. The remaining land development costs and fees are a cost to the builder and do not affect the individually owned homes. Out of the 344 proposed lots, 224 have closed to individuals leaving 120 lots and/or homes owned by Pulte Home. Dividing the total remaining costs of $ 2,591,336 by the 120 lots suggests an average per lot remaining cost of $21,594.47.

Improvement
Description: Alberhill includes 344 single family detached homes spread across four neighborhoods known as : Crestly (by Centex Homes), Ridgeline (by Pulte Homes), Fairfield (by Pulte Homes), and Linden _________________________________________________________________________________________________________ Appraisal Report
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(by Pulte Homes). Below is the site plan for each as well as a description of each neighborhood.

Crestly by Centex Homes:

Crestly includes 77 homes and offers three floor plans with three exterior elevation styles. The three floorplans range from 1,959 to 2,824 square feet, and offer four to five bedrooms and two to three bathrooms. The smallest floorplan in single story while the l arger two are two stories, and all three offer two car garages.

Exteriors at Crestly include Therma-Tru 8’ front doors with Schlage hardware, concrete tyle roof systems, one coast stucco system, illuminated address plates and garage doors with Wi -Fi openers.

Drought resistant front yard landscaping is also included. Interiors at Crestly include 9’ ceilings at first floor (8’ at second floor, per plan), vinyl and carpet flooring, bullnose corners, and ceiling fan prewiring at family room and owner’s suite. Kitchens feature white shaker thermofoil cabinetry, granite slab countertops with 6” backsplash, Whirlpool stainless steel appliances, and undermount stainless steel sinks with Moen chrome faucets. All floorplans also include walk in pantries and kitchen islands. Bathrooms include Eagle marble countertops, mirrored medicine cabinets, and acrylic bath and shower suite at owner’s bathroom. Centex also advertises their wireless access point and centrally located structured wiring enclosure with dedicated 15- amp outlet for improved Wi -Fi

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transmission, as well as CAT6 and 1 RG6 cable, Honeywell Wi -Fi thermostat, and Ring video doorbell. Homes come with advertised sustainable wall and ceiling insulation and spray foam insulation in attic, dual glaze, Low -E glass windows, and PEX plumbing. Solar with battery system is also available for lease or purchase, but is not included in the purchase price.

Ridgeline by Pulte Homes:

Ridgeline includes 84 homes and offers three floor plans with three exterior elevation styles. The three floorplans range from 2,070 to 2,641 square feet and offer three to six bedrooms and two to four bathrooms.. All three of the floorplans are single story, with the smallest offering two car garage and the larger two offering three car garages.

Exteriors at Ridgeline include Therma- Tru 8’ front doors with Schlage hardware, concrete tyle roof systems, one coast stucco system, illuminated address plates and garage doors with Wi -Fi openers. Drought resistant front yard landscaping is also included along with two hose bibs (one in front, and one in back). Interiors at Ridgeline include 9’ ceilings , tile at entry with vinyl and carpet flooring throughout, bullnose corners, and ceiling fan prewiring at family room and owner’s suite. Kitchens feature birch recessed panel cabinetry in a choice of two stain colors, granite slab countertops with 6” backsplash, Whirlpool stainless steel appliances, USB outlets, and undermount stainless steel sinks with Moen chrome faucets. All floorplans also include walk in pantries and kitchen islands. Bathrooms include Eagle marble countertops,

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mirrored medicine cabinets, and acrylic bath and shower suite at owner’s bathroom. Pulte also advertises their wireless access point and centrally located structured wiring enclosure with dedicated 15- amp outlet for improved Wi-Fi transmission, as well as CAT6 and 1 RG6 cable, a choice of either Honeywell or Nest Wi-Fi thermostat, and a choice of either Ring or Nest video doorbell. Homes come with advertised sustainable wall and ceiling insulation and spray foam insulation in attic, dual glaze, Low-E glass windows, and PEX plumbing. Solar with battery system is also available for lease or purchase, but is not included in the purchase price. Homes at Ridgeline offer a variety of room options, including covered patios, additional bedroom/bathroom combinations, and even an option for guest living quarters with a kitchenette and private entry. Room options increase the largest plan up to 6 bedrooms and four bathrooms.

Fairfield by Pulte Homes:

Fairfield includes 87 homes and offers three floor plans with three exterior elevation styles. The three floorplans range from 2, 191 to 2,824 square feet, and offer three to six bedrooms and two to four bathrooms. The smallest floorplan in single story while the larger two are two stories, and all three offer two car garages.

Exteriors at Fairfiled include Therma-Tru 8’ front doors with Schlage hardware, concrete tyle roof systems, one coast stucco system, illuminated address plates and garage doors with Wi -Fi openers.

Drought resistant front yard landscaping is also included along with two hose bibs (one in front, and one in back) . Interiors at Ridgeline include 9’ ceilings at first floor, and 8’ ceilings at second floor (per plan), tile at foyer with vinyl and carpet flooring throughout, bullnose corners, and ceiling fan prewiring at family room and owner’s suite.

Kitchens feature soft maple recessed panel cabinetry in a choice of two stain colors, granite slab countertops with 6” backsplash, Whirlpool stainless steel appliances, USB outlets, and undermount stainless steel sinks with Moen chrome faucets. All floorplans also include walk in pantries and kitchen islands. Bathrooms include Eagle marble countertops, mirrored medicine cabinets, and acrylic bath and shower suite at owner’s bathroom. Pulte also advertises their wireless access point and centrally located structured wiring enclosure with dedicated 15- amp outlet for improved Wi -Fi transmission, as well as CAT6 and 1 RG6 cable, a choice of either Honeywell or Nest Wi-Fi thermostat, and a choice of either Ring or Nest video doorbell. Homes come with advertised sustainable wall and ceiling insulation and spray foam insulation in attic, dual glaze, Low-E glass windows, and PEX plumbing. Solar with battery system is also available for le ase or purchase, but is not included in the purchase price. Homes at Fairfield offer a variety of room options, including covered patios, additional bedroom/bathroom
combinations, pony wall/stairwell options, and fireplace options .

Room options increase the largest plan up to 6 bedrooms and four bathrooms.

Linden by Pulte Homes:

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Linden offers the largest homes at Alberhill, and includes 96 homes while offering three floor plans with three exterior elevation styles.

About one- half of the lots within Linden have good to excellent views. The three floorplans range from 2,792 to 3,337 square feet and offer four to seven bedrooms and 2.5 to 4 bathrooms. All three of the floorplans have two- stories and three car garages. It should be noted that both Plan 2 and Plan 3 have an option to convert the tandem garage into a suite which would increase the livable square footage. The information on which homes included this option was unavailable to the appraiser, thus the smaller sized plan will be included in our valuation.

Exteriors at Linden include Therma-Tru 8’ front doors with Schlage hardware, concrete tyle roof systems, one coast stucco system, illuminated address plates and garage doors with Wi -Fi openers.

Drought resistant front yard landscaping is also included along with two hose bibs (one in front, and one in back) . Interiors at Linden include 9’ ceilings at both first and second floor, 13”x13” tile at foyer, kitchen, bathrooms and laundry plus Shaw carpet in all other areas, bullnose corners, and ceiling fan prew iring at family room, loft, and owner’s suite. Kitchens feature birch recessed panel cabinetry in a choice of two stain colors, granite slab countertops with 6” backsplash, Whirlpool stainless steel appliances, USB outlets, and undermount stainless steel sinks with Moen chrome faucets. All floorplans also include walk in pantries and kitchen islands.

Bathrooms include Eagle marble countertops, mirrored medicine cabinets, and acrylic bath and shower suite at owner’s bathroom.

Pulte also advertises their wireless access point and centrally located structured wiring enclosure with dedicated 15-amp outlet for improved Wi-Fi transmission, as well as CAT6 and 1 RG6 cable, a choice of either Honeywell or Nest Wi-Fi thermostat, and a choice of either Ring or Nest video doorbell. Homes come with advertised sustainable wall and ceiling insulation and spray foam insulation in attic, dual glaze, Low -E glass windows, and PEX plumbing. Solar with battery system is also available for lease or purchase, but is not included in the purchase price. Homes at Linden offer a variety of room options, including covered patios, door configurations, dens, kitchen island options, additional bedroom/bathroom combinations, pony wall/stairwell options, and fireplace options . Room options increase the largest plan up to 7 bedrooms and 5 bathrooms.

We have reviewed sales information for all of Alberhill from the builders which included the homes closing from April 24, 2024, through October 6, 2025. Actual net sales prices (less all concessions) ranged from $552,292 to $1,038,014. Per the Multiple Listing Service, there have been no re- sales, however there is _________________________________________________________________________________________________________ Appraisal Report
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currently one home listed for sale ( 4236 Ladrillo Street, a Plan 1 Fairfield listed for $675,000 and has been on the market for more than three months). Base asking prices currently range from $606,990 to $736,990 while at opening in September 2023 base pricing was $ 594,990 to $ 709,990. While the vast majority of floorplans have increased in base price since opening (0.6 to 7.9 percent increase, depending on the floorplan) all three floorplans at Fairfield have experienced nominal price decreases ($1,000 decrease) since opening, or -0.2 percent decrease. The base price change does not take into account options, premiums, or concessions given to the buyer , including as rate buy downs. The houses which are over 95 percent completed are detailed below.

In addition to the above detailed houses there are 17 houses under construction and 68 finished lots.

Plan
Room
Count
Floors/
Parking
Sq.

Ft.

Ind.

Own
Bldr.

Own
Crestly
1 4 / 2 1 / 2 1,959 22 3*
2 5 / 2.5 2 / 2 2,404 16 3
3 5 / 3 2 / 2 2,824 19 4
Crestly Total 57 10
Ridgeline:
1 3 / 2 1 / 2 2,070 22 2
2 3 / 2 1 / 3 2,304 20 2*
3 5 / 3 1 / 3 2,641 18 3*
Ridgeline 60 7
Fairfield
1 3 / 2 1 / 2 2,191 17 1
2 4 / 2.5 2 / 2 2,654 12 5*
3 5 / 3 2 / 2 2,824 16 2*
Fairfield 45 8
Linden
1 4 / 2.5 2 / 3 2,792 20 4*
2 4 / 3.5 2 / 3 2,988 21 3
3 5 / 4 2 / 3 3,337 21 3*
Linden total 62 10
Total 224 35
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RIVERSIDE COUNTY HOUSING MARKET

In analyzing the County’s housing market, population growth and economic conditions need to first be considered.

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

The average absorption rate for the Inland Empire from 2020 – 2024 was 4.3 sales per month per project. The Year-To-Date absorption rate for 2025 is currently 3.2 sales per month per project which is roughly a 25% decrease from the previous 5- year period (Ryness Report dated September 28, 2025).

Economic growth in the Inland Empire was strong generally between 2015 (after the Great Recession), and until the economic shutdown due to COVID. Post COVID (Q3 2020 – Q2 2025), The United States GDP has grown at annualized average rate of 3.0% with only Q 1 2022 and Q1 2025 having negative appreciation ( -1.0% and -0.5%). The US economy grew an annualized 3.0% in Q2 2025, rebounding from a 0.5% contraction in Q1 2025, and beating expectations of a 2.4% rise, according to the advanced estimate.

The most recent unemployment rate for the County is 6.3 percent (per the August 2025 EDD report). California’s non-farm payroll jobs increased by 3,800 jobs in August 2025, according to the latest Employment Development Department (EDD) data that comes from two separate surveys. August’s job increase follows a revised, lower job loss of 300 for July 2025. While unemployment rates are still near historical lows, the inflation factor has significantly affected the economy.

The housing market played a large role in the past two recessions. In the Great Recession, due to increased interest rates and rising home prices between June 2004 and mid-2006, the market reaction was to create non-conventional financing alternatives, such as sub-prime and non-conventional mortgages, to artificially maintain the booming housing market of 2004 and 2005. By 2007, the housing market saw a shake-up because of the problems in the sub-prime and non-conventional mortgage markets, which played a role in the 2008 upheaval of Wall Street and contributed significantly to the U.S. economic downturn of the Great Recession. Due to stricter income verification on new _________________________________________________________________________________________________________ Appraisal Report
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loans and the lack of available credit, coupled with job losses and declining home prices, sales of new homes slowed for the next few years and essentially remained flat until mid- 2012 when home prices began a steady climb.

During the COVID disruption, new home sales were one of the brightest spots in both the local and national economies. While new home sales slowed in March and April 2020 due to the onset of the COVID pandemic, both sales and prices increased significantly due to strong demand from May 2020 throughout COVID until spring 2022 when interest rate increases began affecting the home- buying market. A combination of increasing home prices and falling consumer confidence, added to the significant interest rate increases, slowing new home sales significantly beginning in mid- 2022. Due to the significantly higher mortgage interest rates, existing homeowners are not moving, which has stifled the existing home market, making the new home market the only option for some. Both new home and existing home sales have slowed considerably from mid- 2022 through 2025. In January 2022 mortgage rates were 3.22 percent (for a typical 30- year fixed conventional mortgage) while as of September 25, 2025, the rate for the same loan is 6. 30 percent. On a $500,000 mortgage, the monthly payment for this loan has increased from $2,167 to $3,095 or nearly 43 percent.

Per the Zonda National Economic and Housing Market Update in July 2025, Resale activity remains sluggish, and new home sales are down compared to this time last year.

Zonda Market Ranking held at “average” in June for the sixth consecutive month. While an “average” ranking may not signal a booming market, it does suggest that consumers are still showing some level of positive responsiveness to builder incentives and/or price cuts. Zonda data also reveals that both overall quick move-in (QMI) housing supply and QMIs per community are up year-over-year. Correspondingly, home prices are generally flat to trending down in many areas. Some pockets of the country, like the Midwest and Northeast, are faring better than high-production Sunbelt markets, where new and resale supply has risen more sharply. Zonda’s new home sales metric counts the number of new home contract sales each month and accounts for both cancellations and seasonality. This metric shows there were 8,680 new homes sold in the past 12 months _________________________________________________________________________________________________________ Appraisal Report
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in the Inland Empire. This was a drop of 24% from the previous year. For Riverside/San Bernardino, total annualized new home sales through the end of the second quarter were down noticeably. This is partially due to the Inland Empire’s new home affordability ratio which is currently running near its 10-year annual low.

The larger public homebuilders began offering significant interest rate buy-downs in early 2023 in order to keep absorption rates steady, which reportedly cost between $30,000 and $100,000 in incentives with the past few months increasing to the high- end of the range in some communities . The question is, how long can builders continue to offer these significant incentives. From conversations with active public homebuilders in the regions, they fully expect rate buy -downs to be prevalent in the new home buyi ng process until rates come down to the mid to low 5.0% range. Although rate-buy downs are setting new home community’s apart from the resale market, it is very costly for the builder to absorb which is greatly affecting their profitability.

Home loan mortgage rates have been and are still playing a huge part in the housing market. The Board held mortgage rates at all -time lows after the Great Recession and again after the COVID Recession in an attempt to assist the housing market’s recovery.

Low rates greatly helped home sales during this time. However, first-time buyers are now having a hard time entering the housing market due to rising prices and rising interest rates. Mortgage applications had been spiking in late 2020 and 2021 due to the low rates and the fear rates were going to start ticking up, which began happening in March 2022.

The Board increased the rate eleven times between March 2022 and August 2023, which increased the FFR from 0- 0.25 percent to 5.25- 5.50 percent. From August 2023 to August 2024 the FFR was held flat. From September 2024 through December 2024, The Board lowered rates from 5.25% - 5.50% to 4.25% - 4.50%. Rates had stayed unchanged between January 2025 and September 2025. By mid -2025, the committee opted for a cautious pause, with the September 2025 meeting delivering the first rate cut. Rate cuts are expected to continue with two additional cuts anticipated this year, depending on labor market and inflation data.

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Residential Land Development
While there had been little land development going on in most of the Inland Empire during the Great Recession years 2008-2011, the second half of 2012 saw a resurgence in the more coveted areas of the Inland Empire. The increase in housing prices since 2012 combined with the limited availability of supply made land development feasible once again for homebuilders. It is thought that the increase in regulations, which has significantly increased the timeline for processing entitlements, has limited the master developers’ further entitlement of developable land in California. While prior to the recession it was not unusual to see numerous large master-planned communities selling lots to various builders, there are few currently available in the subject area such as Bedford (Corona) and Terramor (Temescal Valley). The majority of land sales over the past few years include single tracts of land with maps ready to record (such as the subject portion of Alberhill Ranch) or a public builder purchasing a larger piece of land but develops the land for its own use. The lack of master-planned communities delivering finished lots to home builders has greatly decreased the new home supply in the Inland Empire and is not expected to change in the near future.

Land sales in the Inland Empire slowly grew from 2012 up to a peak in 2017, with 2018 and 2019 showing fewer land transactions. Once home sales exploded in May 2020, land sales followed with a significant number of residential land sales to builders in the Inland Empire during the second half of 2020 and throughout 2021. In late 2021 and early 2022, prior to the FFR increases, builders were paying significantly more for residential land that was ready to develop as demand was strong, and supply was shrinking. The beginning of 2022 continued with strong residential land sales until May, when land sales began to fall sharply due to climbing interest rates. Land Sales in the Inland Empire bounced back in a positive way in 2024, but 2025 has seen a significant decrease in builder land transaction activity and is currently on pace for the slowest year since 2019. According to the National Association for Home Builders (“NAHB”), Builder Confidence in the market for July 2025 was 33, up one point from June, which is one of the lowest ratings since the Great Recession. For reference, 2022 averaged a score of 59, 2023 averaged a score of 44, 2024 averaged a score of 45 and 2025 YTD has _________________________________________________________________________________________________________ Appraisal Report
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averaged a score of 38. The latest Housing Market Index survey also revealed that 38% of builders reported cutting prices in July, the highest percentage since NAHB began tracking this figure on a monthly basis in 2022. Sixty-two percent of builders stated they are using incentives in July, with the percentage unchanged from June.

New Home Sales and Pricing
We have researched new single-family homes within the subject market in order to reflect residential trends. It should be noted these sales numbers and prices pertain to new home sales while later in this section we discuss existing home sales. In reviewing new home sales in the Inland Empire market area, per the October 12, 2025, Ryness Report, the year-to-date average sales rate (3. 1 sales per month) is 1 8 percent lower than the same time period of the previous year (3. 8 sales per month). There are many r easons impacting the slow sales rates of 2025, but one of the main reasons is that the Inland Empire Metro has an affordability issue. According to Zonda, the new home affordability ratio is near its 10- year annual low. A few key reasons contributed to the affordability problem are increased mortgage rates, stagnant job and wage growth, inflation, tariffs, and increased insurance costs.

When comparing the October 12, 2025, Inland Empire Ryness Report to one year prior, there are two additional projects ( 231 in October 2024 and 233 in October 2025) but sales are about 18 percent lower year-to-date than the previous year with the average sales per community at 3.1 per month. Looking back, in 2024 the average sales rate per month was 4.1, in 2023 the average sales rate was 4.0, 2022 the average sales rate was

4.3, in 2021 the average sales rate was 4.9 homes per month, and in 2020 the average sales rate was 4.1 homes per month.

New single-family home pricing (combines both attached and detached) in the Inland Empire has also seen changes. The median new home price in the Inland Empire changed from the peak value of $437,200 in the third quarter of 2006 to $268,155 in early 2009 (during the Great Recession, a decrease of 39 percent) while the current Inland Empire median new home price is $626,500. The current median price reflects an increase of over 100 percent from the bottom of the cycle and an increase of more than _________________________________________________________________________________________________________ Appraisal Report
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40 percent over its peak during the Great Recession. However, builders are buying down interest rates which costs the builder at times, up to $100,000, but the amount is not reflected in the recorded sales price. New home sale prices fluctuate based on the land value and competition more than on the cost of building the home. While finishes and sizes of homes can change, the basic costs on a per square foot basis typically do not fluctuate as much as land values; however, there have been inflationary increases in construction costs adding to this increase. Construction materials have increased an estimated 50 percent since 2019.

Within our search for the most comparable actively selling new home communities, we searched the subject’s Ryness submarket of South Riverside which houses Lake Elsinore, Wildomar, Menifee, the French Valley and Winchester , and expanded to also include several projects in Temescal Valley and Perris due to close proximity (Temescal Valley projects) or similar sizes (Perris projects). The South Riverside submarket has 50 new home communities which have an average sales rate year to date of 3.2 homes per month. This is slightly stronger but generally consistent with the Inland Empire average of 3.1sales per month. Out of the 50 total new home communities in the South Riverside submarket, Lake Elsinore houses 10 of them. Pulte and Centex have four neighborhoods in Alberhill Ranch (subject), KB Home has two neighborhoods in Terracina as well as Crimson Hills, Meritage has one neighborhood at Nichols Ranch, Tri Pointe Homes has Echo Highlands, and DR Horton recently opened their attached project Laguna Pointe.

While there are a lot of communities currently selling within the City boundaries, we extended our search to include Temescal Valley and Wildomar communities that are close geographically to the subject, as well as two Perris community which have similar large square footages. We have utilized 14 comparable new home communities (including the subject’s four product lines) with base pricing ranging from $5 20,990 to $923,990, with the majority of base pricing in the $560 ,000 to $ 800,000 range. The subject’s most recent base pricing is from $606,990 to $736,990, which falls within the comparables price range.

Existing Homes Sales and Pricing

While the previous section looked at new home sales and pricing, this section refers to existing homes in the Inland Empire. According to the California Association of Realtors’ _________________________________________________________________________________________________________ Appraisal Report
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most recent sales data, within overall Southern California, the median price paid for an existing single-family home in August 2025 ($873,480) reflects an increase of 1.2 percent from the previous year ($863,500 in August 2024) and a slight drop of 0.2 percent from the previous month. Existing home sales in Southern California overall were down 3.7 percent year -over-year as of August 2025, and down 7.3 percent from the previous month. The overall Southern California numbers compare to Riverside County with $625,000 as the median price paid for an existing home in the County in August 2025, a

0.8 percent decrease from the previous month, but up 1.0 percent from one year ago.

The slower sales rates in the existing home sales market are reflective of homeowners not ready to sell due to the changing market. Historically, the new home market captures 10-13 percent of the overall home sales; however, in the past few years due to the limited availability of existing homes, new home sales are capturing closer to 25- 30 percent of total home sales. Below is a table showing the sales and prices for the Southern California area by County per the California Association of Realtors.

Southern California Existing Home Sales
County Aug. 2025 July 2025 Aug 2024
Price MTM
% Change
Price YTY
% Change
Sales YTY
% Change
Los Angeles $930,720 $930,720 $919,890 2.1% 1.2% -12.3% Orange $1,385,000 $1,385,000 $1,400,000 -1.1% -1.1% 1.4% Riverside $625,000 $625,000 $618,940 -0.8% 1.0% -7.0%
San Bernardino $503,030 $503,030 $499,000 3.4% 0.8% 3.6% San Diego $1,025,000 $1,025,000 $1,010,000 -1.4% 1.5% -0.6% Ventura $937,500 $937,500 $965,000 -1.3% -2.8% 16.7%
Southern Calif. $873,480 $873,480 $863,500 -0.2% 1.2% -3.7% Source: California Association of Realtors

Based on August 2025 median existing homes prices, in comparison to the majority of the surrounding counties, Riverside County has a definite price advantage. The “Riverside County Advantage” (price difference between Riverside and surrounding counties) is $305,720 as compared to Los Angeles County, $312,500 as compared to Ventura County, $400,000 as compared to San Diego County and $760,000 as compared to Orange County. That is, in August 2025, the median priced home in Riverside County was $760,000 less (or approximately 55 percent less) than the median priced home in Orange County ($1,385,000). However, San Bernardino County has a $121,970 price advantage over Riverside County. Typically, as the price advantage widens, homebuyers are more open to commuting to further out areas. With the work - _________________________________________________________________________________________________________ Appraisal Report
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from-home concept, the suburban areas have seen more growth which puts pressure on home prices in the Inland Empire. It’s worth noting that the majority of Southern California counties showed median price decreases from the previous month, however, this is also due to minimal inventory/supply which is upsetting the balance in the housing market coupled with the slow-down in the fall in home transactions.

In a separate attempt to capture the neighborhood specific price changes, the resale activity of existing homes in the subject area (per Redfin.com’s Housing Market Trends) has been reviewed. The number of sales and sale prices of existing homes within market areas in the immediate area of the subject are shown in the table below.

ZIP Code/Community
Name
Border
To
Subject
Sales of
Homes
Aug.
2025
Sales %
Change
from
Aug. 2024
August
2025 Price
Median
Price %
Change
from Aug.
2024
Aug.
2025
PSF
Median
92530 (Lake Elsinore) Subject 170 21.4% $565,000 -1.7% $322 92532 (East Lake Elsinore) East 77 -18.1% $640,000 0.4% $289 92883 (Temescal Valley) Northwest 137 -14.9% $775,000 3.3% $358 92587 (Canyon Lake) East 74 17.5% $628,000 -2.7% $479
92595 (Wildomar) Southeast 42 -48.8% $664,000 4.6% $254 92562 (Murrieta) South 233 13.1% $685,000 2.4% $351
Source: Redfin.com Housing Market Trends August 2025

The median home price of a detached resale home in the subject’s immediate market area is $565,000, which is the lowest of the sales in the subject market area. The above price fluctuations from year to year relate to the California Association of Realtors overall Riverside County detached home resale price increase of 1.0 percent year-over-year and 7.0 percent sales decrease from August 2024 to August 2025.

Alberhill - Sales, Pricing and Competition
Alberhill includes Crestly by Centex, as well as Ridgeline, Fairfield, and Linden all by Pulte Homes. All neighborhoods began selling their homes in late December 2023 with 255 houses sold to date suggesting a sales rate of 12.2 homes per month spread across all four neighborhoods. Detailing each neighborhood, Crestly has sold 61 homes, suggesting an average sales rate of 2.9 homes per month; Ridgeline has sold 73 homes, with a sales pace of 3.5 sales per month; Fairfield has sold 54 homes for a pace of 2.6 sales per month; while Linden has sold 67 homes for a sales pace of 3.2 homes per _________________________________________________________________________________________________________ Appraisal Report
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month. It should be noted that about one-half of the lots within Fairfield and Linden have good to excellent view potential. Original base pricing in Alberhill Ranged from $594,990 to $709,990 while current base pricing is $ 606,990 to $ 736,990, with the majority of floorplans reflecting an increase of 0.3 up to 7.9 percent. The exception is Fairfield, where all floorplans have decreased slightly ($1,000 or - 0.2 percent) since opening.

Actual net closed home pricing ranged from $ 552,292 to $ 1,038,014. Actual closed prices include options, upgrades, and premiums along with all concessions given by the builder. Reported escrow home pricing, also including all options, upgrades and premiums along with concessions given by the builder range from $ 598,990 to $1,001,737. It should be noted that the reported escrow prices do not include the mortgage incentives as they are finalized at the end of escrow. All four neighborhoods are closing with incentives, which are common in today’s marketplace.

All four projects are enjoying average to good sales rates, at or near the average in the area ranging from 2.6 sales per month ( Fairfield) to 3.5 sales per month ( Ridgeline), compared to the Inland Empire’s overall average sales rate ( 3.1 sales per month).

According to the Ryness Report dated October 12, 2025 , there are currently 50 new home projects in the South Riverside submarket which includes Lake Elsinore. The 50 projects include 10 communities in Lake Elsinore (including the subject ’s four). The average absorption rate within the 50 South Riverside communities’ year to date per the October 12, 2025 Ryness Report is 3.2 sales per month. The subject sales rates in the

2.6 to 3.5 sales per month range is near the overall average in the area.

Summary
Riverside County has seen a substantial increase in pricing since 2012 with most areas, including the subject, showing astronomical increases from Mid- 2020 through early 2022. While existing home sales were originally down when COVID began in spring/early summer 2020, new home sales subsequently shot up due to the existing home market supply being constrained and interest rates hitting all -time lows. The latest statistics suggest a slowdown in sales as interest rates have risen substantially; however, with rates now decreasing, buyers may be coming back to the market. While there are 50 _________________________________________________________________________________________________________ Appraisal Report
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new home projects in the South Riverside submarket, they are experiencing slightly higher overall sales rates than the overall Inland Empire. The subject market area saw an increase in pricing consistent with most of Southern California throughout 2020-2022.

From 2022 to present, elevated interest rates and inflation have greatly affected the region’s affordability. Overall, sales rates have slowed in 2025 and are considered below average. The subject communities are showing average to good sales rates. Although uncertainties are evident at the moment, most observers agree that the Inland Empire new home market will continue to expand in the coming years. It is believed that as the population continues to increase, housing growth will also continue, despite a slowdown.

HIGHEST AND BEST USE ANALYSIS

The highest and best use is a basic concept in real estate valuation due to the fact that it represents the underlying premise (i.e., land use) upon which the estimate of value is based. In this report, the highest and best use is defined as:

"the reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value”
4F
4 Proper application of this analysis requires the subject propert ies to first be considered “As If Vacant” in order to identify the “ideal” improvements in terms of use, size and timing of development. The existing improvements (if any) are then compared to the “ideal” improvements to determine if the use should be continued, altered or demolished preparatory to redevelopment of the site with a more productive or ideal use.

“As If Vacant”
In the following analysis, we have considered the sites probable uses, or those uses which are physically possible; the legality of use, or those uses which are allowed by zoning or deed restrictions; the financially feasible uses, or those uses which generate a positive return on investment; and the maximally productive uses, or those probable permissible uses which combine to give the owner of the land the highest net return on value in the foreseeable future.

Physically Possible Uses
The subject propert y consists of 134.06 gross acres per Tract Map 28214-9 which includes 344 residential lots and 55 lettered lots which includes over 35 acres of open space, slopes, and setback areas along with two small neighborhood parks. The site is irregular in shape with entrances off Alberhill Ranch Road creating a northern and a southern portion of the site. The site is hilly, providing for some good to excellent views.

We have reviewed a geotechnical report which states the site appears suitable to be developed into the proposed residential land use, assuming the recomm endations

4 The Appraisal of Real Estate, 11th Edition
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presented in the report are incorporated into the design, planning and construction of the site. In addition, grading has occurred on the site with 344 single-family detached residential lots graded and generally finished. We have not received an environmental report to review , however, within the Specific Plan it refers to the associated Environmental Impact Report which was approved by the City.

It is an assumption of this appraisal that the soils are adequate to support the highest and best use conclusion and that there are no environmental or condition issues which would slow or thwart development of the site. This is evidenced by City approvals along with City inspectors on site during construction and certificates of occupancy being obtained on homes within the site. An engineered drainage system has been designed into a street drainage system to alleviate any potential flooding problems and to control project water runoff. The site has good access from I-15 via Nichols Road or Lake Street.

Based on the physical analysis, the size, access and topography make the subject property physically suited for numerous types of development; however, the grading and development that has occurred on the site suggests single-family residential use.

Legality of Use
The subject property is located within the City of Lake Elsinore, the controlling entity to regulate land use. Per the C ity the subject property is covered by Specific Plan 89 -2 (Alberhill Ranch) with the subject property identified as R- SF (single-family residential with a density of 3.8 dwelling units per acre) and RM (single family residential with a density of 3.6 dwelling units per acre. Per both the City’s zoning map and the City’s general plan map, the subject is shown as SP (Specific Plan). In addition, Tract Map No. 28214-9 recorded on November 23, 2021, dividing the subject property into 344 single family detached residential lots, internal streets, setback areas, parks and open space areas. The approved mapping is consistent with the approved Specific Plan that has been approved on the property. Based on the legality of use analysis, the type of development for which the subject property can be utilized is narrowed to residential use.

This is consistent with the findings of the physically possible uses.

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Feasibility of Development
The third and fourth considerations in the highest and best use analysis are economic in nature, i.e., the use that can be expected to be most profitable. As discussed under the Riverside County Housing Market section earlier within this report, the City of Lake Elsinore new housing market and surrounding communities are showing good absorption over the past few years.

The subject portion of Alberhill Ranch opened for sale in late December 2023, with 255 homes sold to date, suggesting the need for new homes in the area. There are currently 10 new home communities in the City of Lake Elsinore, all selling between average to excellent sales rates. The sales of 255 homes within the past 21 months between the four subject neighborhoods suggest that there is a need for new homes in the City of Lake Elsinore.

Based on the above analysis, the highest and best use for the subject property appears to be for single-family residential development.

Maximum Productivity
Based on the market activity of residential lands in the immediate area, we have concluded there is a need/demand for residential lands. Based on the absorption of new homes in the area, coupled with population growth projected in the subject marketplace, it is our opinion that the subject property is feasible for residential development.

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

Highest and Best Use – “As Improved”
The subject property consists of the four neighborhoods of Crestly, Ridgeline, Fairfield and Linden at Alberhill Ranch. The four communities opened in late December 2023 and _________________________________________________________________________________________________________ Appraisal Report
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have sold 255 homes since that time, suggesting an average sales rate between the four communities of over 12 houses per month. Individually, Crestly has averaged 2.9 sales per month, Ridgeline has averaged 3.5 sales per month, Fairfield has averaged 2.6 sales per month and Linden has averaged 3.2 sales per month. The average year to date monthly sales per project in the Inland Empire is 3.1 sales per month while within the subject submarket of South Riverside the year-to-date average is 3.2 houses per month.

The range within the South Riverside submarket area is generally 1.0 to 7.0 year-to-date average sales per month for active projects. The four subject communities, with average sales ranging from 2.6 to 3.5 sales per month, are within the range of the average sales.

All of t he homes appear to be in excellent condition with no physical depreciation of structures visually apparent. The sales rate within the subject neighborhoods and the new home sales in the surrounding communit ies suggests there is demand for new homes in the current market with current financing rates at the correct price points. All of the homes are of good design and appear to be of good quality workmanship. Based on the overall sales rates within Alberhill Ranch, it is our conclusion that the highest and best use for the subject property is for the continued use, as improved. _________________________________________________________________________________________________________ Appraisal Report
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VALUATION ANALYSES AND CONCLUSIONS

The Sales Comparison Approach will be the primary approach used to value the subject property. This approach compares similar properties that have recently sold or are in escrow to the subject property . In determining the value for the property, a unit of comparison needs to be addressed. For detached single-family lots, the lots are typically sold on a finished lot basis with the condition of the land taken into consideration. That is, the sales price is determined by a finished lot value, then the remai ning costs to develop the property to a true finished lot condition are taken into consideration.

Therefore, in determining a current market value for the lands, the current condition of the lots will be considered. In the case of the existing home valuations, a single new - home sale is the unit of comparison. Our search will include all new home projects within the Lake Elsinore area in order to find comparable new homes for sale. In determining the value for each house, a base value will be concluded for each plan which will be considered a minimum market value as most buyers typically purchase some premiums, upgrades or options which increase the price of the home. In addition, concessions given by builders will also be considered.

In the case of the completed (over 95 percent complete) builder -owned models and production units, the homes will be valued using the Sales Comparison Approach to value to conclude on a retail value for each plan, followed by a Discounted Cash Flow (“DCF”) Analysis due to the single ownership of multiple homes by the builder. The DCF will consider the retail market value of the completed homes (utilizing the Sales Comparison Approach), remaining development costs (if any), the marketing and carrying costs associated with selling off the homes, a profit due to the developer of the homes, and a discount rate reflecting both the risk associated with selling off the homes along with the time value of money during the estimated absorption period. In the case of the individually owned homes, a concluded base value will be used for each plan and a mass appraisal technique will be used. In determining the concluded base value, new home sales in the area will be reviewed and compared with sales of the subject completed homes using standard methodology and statistical testing. All of the value _________________________________________________________________________________________________________ Appraisal Report
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conclusions will assume that the improvements funded by the Lake Elsinore CFD No. 2022-1, Special Tax Bonds are completed and in place and that the property is subject to the Special Tax Lien.

The valuation will be presented as follows: First, a discussion of the comparable residential market data will be given. Each of the transactions will be detailed along with a comparison discussion of their relationship to the subject property based on a per lot price. Following the land value conclusions, a value analysis for each house plan within the four subject communities will be completed along with a discounted cash flow analysis for the builder -owned completed homes . A summary of the final value conclusions will be reported at the end of this valuation section.

Market Data Discussion –Residential Lots

Within Alberhill, out of 344 total proposed homes, there are currently 224 closed to individual homeowners, seven models and 28 production homes over 95 percent complete owned by the builder ( 19 in escrow) , 17 houses under construction ( six in escrow) and 68 generally finished lots ( six in escrow). We will value a home under construction (under 95 percent complete) as a finished lot rather than give value to a partially complete improvement, therefore, we will value 85 lots in this section.

We have searched the area for land sales that are similar to the subject lands. Due to the limited availability of recent sales in Lake Elsinore, we have expanded our search to include land sales within the surrounding communities of Temescal Valley and Wildomar.

Our search resulted in the seven transactions summarized below and, in the Addenda, to be most comparable to the subject property. The sales are reported both on a purchase price basis (when available) and on a finished lot basis (when available).

Although some sales refer to “finished lots,” they are typically physically finished lots with some fees remaining to be paid in order to be considered true finished lots. In addition, approximately one- quarter of the subject lots have good to excellent views. This is considered in our analysis. Below are the details of each of the comparable land sales along with a discussion of each transaction in relationship to the subject lands. _________________________________________________________________________________________________________ Appraisal Report
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Land Sale No. 1 refers to the most recent residential land transaction in Lake Elsinore.

The New Home Company purchased the site located roughly 5.0 miles south of the subject property on Mission Trail in the City of Lake Elsinore in May 2025. The lands were unimproved with an approved Final Map for 191 detached courtyard cluster lots.

The New Home Company purchased the 191 lots for $16,300,000 or $85,340 per lot based on an estimated finished lot price of $211,000 assuming a similar CFD. This site does not allow for views. In comparison to the subject site, this site is considered inferior in view potential, lot size/product type as traditional single-family homes hold a premium to small lot/cluster product. In addition, the location in south Lake Elsinore is slightly inferior to the subject’s location in north Lake Elsinore.

Land Sale No. 2 refers to a recent sale within the Unincorporated Riverside County known as Temescal Valley with Trumark Homes purchasing 224 lots known as Saddleback located northwest of De Palma Road and Horsethief Canyon Road about

4.0 miles north of the subject site. Trumark Homes purchased the 224 lots from Diversified Pacific with the closing occurring in December 2024. Trumark Homes paid $16,500,000 or $73,661 per lot based on an estimated finished lot price of $400,000 per brokers familiar with the transaction. The site closed with an approved Final Map in an unimproved condition with minimal view potential. Saddleback has a minimum lot size of 6,000 square feet. The finished lot price assumes a similar CFD on this transaction. In comparison to the subject property, this site is considered to be at a superior location.

Land Sale No. 3 refers to the purchase of 335 single family detached lots with a minimum lot size of 5,000 square feet located about 4.0 miles east of the subject site at Greenwald Avenue and Little Valley Road in Lake Elsinore. KB Home purchased the 335 lots from Shopof f Realty Investments in October 2024 for $13,000,000 or for $38,806 per lot based on a reported finished lot cost of $247,000. The lands were in an unimproved condition with an approved Final Map. This site has minimal view potential.

The reported finished lot price reflects a proposed CFD on the property , similar to the subject’s CFD. In comparison to the subject property, this transaction is considered to _________________________________________________________________________________________________________ Appraisal Report
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be slightly inferior in lot size , location and view potential as this area does not have as good access as the subject area does.

Land Sale No. 4A/4B refers to the two -takedown sale of the property known as Sycamore Highlands which is located east of Towhee Lake and Quince Court in the Unincorporated Riverside area known as Temescal Valley located about 5.5 miles north of the Subject Property with minimal view potential. D.R. Horton purchased the 1 st
takedown of 25 lots in May 2024 for $7,863,233 of $314,529 a lot. D.R. Horton purchased the 2
nd takedown of 24 lots in July 2024 for $7,548,703 of $314,529 a lot. The property was with a Recorded Final Map and delivered in a finished lot condition on reported finished lot price of $361,300. Sycamore Highlands has a minimum lot size of 4,050 square feet. The community has a similar CFD as the subject with similar overall tax rates. In comparison to the subject property, this transaction is considered to be superior in location, however slightly inferior in lot size and view potential.

Land Sale No. 5 refers to the purchase of Phase 1 at JBJ Ranch in the Unincorporated Riverside area known as Temescal Valley by KB Home. Mission Pacific Land Company entitled and sold the property located at Bosley Lane and Horsethief Canyon Road about

4.0 miles north of the subject property. The lots had an approved Final Map and were in an unimproved condition at the time of sale. The site has minimal view potential. KB Home purchased the 203 lots which had a minimum lot size of 5,000 square feet in December 2023 for $27,539,637 or $135,663 per lot based on a reported finished lot of $295,000. JBJ Ranch Phase 1 (now called Monteverdi) has a similar CFD to the subject property. In comparison to the subject property, these lots are considered to be superior due to location and inferior in lot size and view potential.

Land Sale No. 6 refers to the sale of 117 lots located northwest of Palomar Street and Starbuck Circle in the City of Wildomar about 10.0 miles south of the subject property.

D.R Horton purchased the 7,200 square foot lots in an unimproved condition with an approved Final Map for $7,000,000 or $59,829 per lot based on a reported finished lot price of $265,000. D.R. Horton bought the property from R&R Wildomar in June 2023. _________________________________________________________________________________________________________ Appraisal Report
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The property is located within a planned CFD with similar overall proposed tax rates to the subject property. This site has minimal view potential. In comparison to the subject property this site is considered to be superior due to the lot size and inferior due to views.

Land Sale No. 7 refers to the purchase of 399 lots at Terracina located in Lake Elsinore by KB Home. Spectrum Communities entitled and sold the property located at Terra Cotta Road and Terracina Lane less than 0.25 miles south of the subject property. The lots closed with an approved Final Map and were in an unimproved condition at the time of sale. KB Home purchased the 399 lots which had a minimum lot size of 4,500 square feet in June 2021 for $24,000,000 or $60,150 per lot based on a reported finished lot of $195,000. Terracina has a similar CFD to the subject property. While this site does have some views, they are inferior to the view potential of the subject property. In comparison to the subject property, these lots are considered to be similar due to location but slightly inferior due to lot size.

The chart below summarizes the considerations used in adjusting the market data to the subject lot.

Data
No.

Location
Date
of
Sale
Lot Size Finished
Lot Price Comparison to Subject
1 Lake Elsinore 05/25 3,000 $211,000
Inferior – Views, Lot Size and
Product Type
Slightly Inferior - Location
2 Temescal Valley 12/24 6,000 $400,000 Superior – Location Inferior - Views
3 Lake Elsinore 10/24 5,000 $247,000 Slightly Inferior – Location, views and lot size
4 Temescal Valley 05/24
07/24 4,050 $361,300 Superior – Location
Inferior – Lot Size & Views
5 Temescal Valley 12/23 5,000 $295,000 Superior – Location Inferior Views and Lot Size
6 Wildomar 06/23 7,200 $265,000 Superior – Lot Size
Inferior - Views
7 Lake Elsinore 06/21 4,500 $195,000
Similar – Location
Slightly Inferior – Lot Size &
Views

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The market data has an overall finished lot range from $195,000 to $400,000. Data No. 2, at the high end of the range refers to a recent transaction that sold at the top of the market with the location considered to be superior. Data No. 7 which sold for $195,000 finished in June 2021, is considered to be the most similar to the subject property, due to location, and deal size, but is also the oldest transaction (more than 3 years old) and does not have the views that the subject has. The decrease in housing prices in the past few months due to the significant increase in interest rates suggests that residential land prices would also decrease, however we have not seen that in the market data yet. While residential land transactions in the Lake Elsinore area have slowed and some stopped, we do not have evidence of a decrease in pricing at this time. The latest sale occurred in May 2025 (Data No. 1 at $211,000 for a finished lot) which is a detached courtyard cluster format, considered significantly inferior to the subject due to the lot size, product type and views. The subject has been graded with the majority of the lots having good views, with some about one- quarter of the lots having good to excellent views. While the minimum lot size in the subject development is 6,000 square feet, the majority of the lots range in size from 7,200 to 8,000 square feet.

Based on the market data , we have concluded at a finished lot value for the subject property of $280,000. As discussed above under the Property Description Section there are $21,594.47 in remaining land development costs and fees per lot. The concluded value for the lots is as follows:

85 Lots x $280,000 $ 23,800,000
Less Rem. Costs ($21,594.47 x 85) (1,835,530)
As Is value for the 85 Lots $ 21,964,470

Retail House Valuation

Due to the single ownership of multiple houses by Pulte , a Discounted Cash Flow (“DCF”) analysis is needed in order to arrive at a bulk value for the homes. First, a retail value for each plan will be concluded, followed by a DCF for the builder which will take into consideration the absorption time to sell off the builder owned houses, the costs associated with selling off the homes and any remaining development costs to be paid _________________________________________________________________________________________________________ Appraisal Report
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by the builder within each neighborhood. The resulting revenue will be discounted using an appropriate rate to determine the builder-owned bulk value.

Between the four neighborhoods of Crestly , Ridgeline, Fairfield and Linden at Alberhill Ranch, Pulte currently owns seven model homes and 28 production homes (over 95 percent complete), 19 of which are in escrow and due to close upon completion. In this analysis we will value each plan within each neighborhood and then use a discounted cash flow analysis to conclude at a bulk value for the builder-owned homes.

Below is a summary of the floor plans within Alberhill. A listing of the improved residential comparable properties is located in the Addenda of this report.

In addition to the above detailed houses there are 17 houses under construction and 68 finished lots.

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

Plan
Room
Count
Floors/
Parking
Sq.

Ft.

Ind.

Own
Bldr.

Data Plan Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 1 4 / 2 1 / 2 1,959 --
2 1 3 / 2 1 / 2 2,070 $296.13
3 1 3 / 2 1 / 2 2,191 $272.47
5 3 3 / 2 1 / 2 1,840 $301.08
5 4 3 / 2.5 2 / 2 1,976 $283.90
6 3 4 / 2 1 / 2 2,027 $280.71
8 3 3 / 2 1 / 2 1,941 $304.31
9 4 3 / 2 1 / 2 2,026 $294.17
11 2 3 / 2 1 / 2 1,882 $372.47
11 3 4 / 2 1 / 2 2,026 $355.87

There have been 22 closings of Plan 1 with net sale prices ranging from $288.72 to $335.71 per square foot. The net sale price refers to the base price plus options, upgrades and premiums, less all concessions including the mortgage concessions and any additional sales allowance. There is currently one escrow of Crestly Plan 1 with a sales price of $329.58 per square foot. It should be noted that most homebuyers purchase some upgrades, premiums and options and most sales in today’s market include concessions given by the builder. The escrow amounts do not reflect the mortgage concessions which ranged from zero to $54,606 on the closed sales. Our concluded price is based on the base price of the home with no upgrades, premiums, or options, less all concessions. All homes appear to be in excellent condition with no depreciation visible. It has been concluded that Crestly Plan 1 has a base current market value of $300.00 per square foot.

This calculates as follows:
1,959 sf x $300.00 = $587,700

The most appropriate new home comparable data for Crestly Plan 2 are shown below.

Data Plan Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 2 5 / 2.5 2 / 2 2,404 --
2 2 3 / 2 1 / 3 2,304 $280.81
5 6 4 / 3 2 / 2 2,389 $252.40
6 5 4 / 3 2 / 2 2,453 $249.08
7 1 4 / 3 2 / 2 2,308 $281.20
7 2 4 / 3 2 / 2 2,532 $267.50
9 6 4 / 2.5 2 / 2 2,519 $261.61
10 3 5 / 3 2 / 3 2,537 $307.45
11 4 3 / 2.5 2 / 2 2,283 $323.25
12 3 5 / 3 2 / 2 2,537 $364.21

There have been 16 closings of Plan 2 with net sale prices ranging from $229.74 to $271.75 per square foot. The net sale price refers to the base price less allowance, if any, the lot premium (less premium allowance), the net options (takes into account option allowance), the mortgage concessions and any additional sales allowance. There are currently no escrows of Crestly Plan 2. It should be noted that most hom ebuyers purchase some upgrades, premiums and options and most sales in today’s market include concessions given by the builder. Our concluded price is based on the base price of the home with no upgrades, premiums, or options, less all concessions. All homes appear to be in excellent condition with no depreciation visible. It has been concluded that Crestly Plan 2 has a base current market value of $250.00 per square foot. This calculates as follows:

2,404 sf x $250.00 = $601,000

The most appropriate new home comparable data for Crestly Plan 3 are shown below.

_________________________________________________________________________________________________________ Appraisal Report
City of Lake Elsinore CFD No. 2022-1 (Alberhill)
Kitty Siino & Associates, Inc. Page 64
Data Plan Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 3 5 / 3 2 / 2 2,824 --
3 3 5 / 3 2 / 2 2,824 $233.35
4 1 4 / 2.5 2 / 3 2,792 $246.77
7 3 4 / 3 2 / 2 2,744 $241.25
7 4 5 / 3 2 / 2 2,932 $238.40
9 8 5 / 3 2 / 2 2,874 $228.25
10 4 5 / 4 2 / 3 2,929 $283.37
11 6 5 / 3 2 / 2 2,874 $276.61

There have been 19 closings of Plan 3 with net sale prices ranging from $222.20 to $262.28 per square foot. The net sale price refers to the base price less allowance, if any, the lot premium (less premium allowance), the net options (takes into account option allowance), the mortgage concessions and any additional sales allowance. There are currently three escrows of Crestly Plan 3 with a sales price range of $222.85 to $236.54 per square foot.

It should be noted that most homebuyers purchase some upgrades, premiums and options and most sales in today’s market include concessions given by the builder. The escrows do not reflect the mortgage concessions which ranged from zero to $51,326 on the closed sales. Our concluded price is based on the base price of the home with no upgrades, premiums, or options, less all concessions. All homes appear to be in excellent condition with no depreciation visible. It has been concluded that Crestly Plan 3 has a base current market value of $230.00 per square foot. This calculates as follows:

2,824 sf x $230.00 = $649,520

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

Data Plan Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 1 3 / 2 1 / 2 2,070 --
1 1 4 / 2 1 / 2 1,959 $309.85
3 1 3 / 2 1 / 2 2,191 $272.47
5 3 3 / 2 1 / 2 1,840 $301.08
5 4 3 / 2.5 2 / 2 1,976 $283.90
6 3 4 / 2 1 / 2 2,027 $280.71
8 3 3 / 2 1 / 2 1,941 $304.31
9 4 3 / 2 1 / 2 2,026 $294.17
9 5 4 / 2 1 / 2 2,198 $298.45
11 2 3 / 2 1 / 2 1,882 $372.47
11 3 4 / 2 1 / 2 2,026 $355.87

The new home comparables are all located within the subject’s City of Lake Elsinore, Temescal Valley and Wildomar. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The comparable new home base prices range from $272.47 to $375.47 per square foot. The asking base price for Ridgeline Plan 1 is currently $296.13 per square foot. There have been 22 closings of Plan 1 with net sale prices ranging from $273.81 to $372.11 per square foot. The net sale price refers to the base price less allowance, if any, the lot premium (less premium allowance), the net options (takes into account option allowance), the mortgage concessions and any additional sales allowance. There are currently four escrows of Ridgeline Plan 1 with a sales price range of $301.93 to $341.91 per square foot. It should be noted that most homebuyers purchase some upgrades, premiums and options and most sales in today’s market include concessions given by the builder. The escrows do not reflect the mortgage concessions which ranged from zero to $48,193 on the closed sales. Our concluded price is based on the base price of the home with no upgrades, premiums, or options, less all concessions. All homes appear to be in excellent condition with no depreciation visible. It has been concluded that Ridgeline Plan 1 has a base current market value of $285.00 per square foot. This calculates as follows:

2,070 sf x $285.00 = $589,950

The most appropriate new home comparable data for Ridgeline Plan 2 are shown below. _________________________________________________________________________________________________________ Appraisal Report
City of Lake Elsinore CFD No. 2022-1 (Alberhill)
Kitty Siino & Associates, Inc. Page 66
Data Plan Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 2 3 / 2 1 / 3 2,304 --
2 1 3 / 2 1 / 2 2,070 $296.13
2 3 5 / 3 1 / 3 2,641 $268.46
3 1 3 / 2 1 / 2 2,191 $272.47
5 6 4 / 3 2 / 2 2,389 $252.40
6 4 3 / 2.5 2 / 2 2,218 $262.39
8 4 4 / 3 2 / 2 2,216 $269.40
9 5 4 / 2 1 / 2 2,198 $298.45
10 2 4 / 3 2 / 3 2,239 $330.50
11 4 3 / 2.5 2 / 2 2,283 $323.25

The new home comparables are all located within the subject’s City of Lake Elsinore, Temescal Valley and Wildomar. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The comparable new home base prices range from $ 252.40 to $330.50 per square foot. The asking base price for Ridgeline Plan 2 is currently $280.81 per square foot. There have been 20 closings of Plan 2 with net sale prices ranging from $257.37 to $368.13 per square foot. The net sale price refers to the base price less allowance, if any, the lot premium (less premium allowance), the net options (takes into account option allowance), the mortgage concessions and any additional sales allowance. There are currently three escrows of Ridgeline Plan 2 with a sales price range of $275.60 to $294.92 per square foot. It should be noted that most homebuyers purchase some upgrades, premiums and options and most sales in today’s market include concessions given by the builder. The escrows do not reflect the mortgage concessions which ranged from zero to $53,956 on the closed sales. Our concluded price is based on the base price of the home with no upgrades, premiums, or options, less all concessions. All homes appear to be in excellent condition with no depreciation visible. It has been concluded that Ridgeline Plan 2 has a base current market value of $270.00 per square foot. This calculates as follows:

2,304 sf x $270.00 = $622,080

The most appropriate new home comparable data for Ridgeline Plan 3 are shown below.

_________________________________________________________________________________________________________ Appraisal Report
City of Lake Elsinore CFD No. 2022-1 (Alberhill)
Kitty Siino & Associates, Inc. Page 67
Data Plan Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 3 5 / 3 1 / 3 2,641 --
2 2 3 / 2 1 / 3 2,304 $280.81
3 2 4 / 2.5 2 / 2 2,654 $242.65
4 1 4 / 2.5 2 / 3 2,792 $246.77
7 2 4 / 3 2 / 2 2,532 $267.50
7 3 4 / 3 2 / 2 2,744 $241.25
8 5 5 / 3 2 / 3 2,532 $252.57
9 7 4 / 2.5 2 / 2 2,528 $296.28
10 3 5 / 3 2 / 3 2,537 $307.45
11 5 4 / 2.5 2 / 2 2,613 $294.29
12 4 4 / 3.5 2 / 2 2,617 $323.27

The new home comparables are all located within the subject’s City of Lake Elsinore, Temescal Valley and Wildomar. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The comparable new home base prices range from $241.25 to $323.27 per square foot. The asking base price for Ridgeline Plan 3 is currently $268.46 per square foot. There have been 18 closings of Plan 3 with net sale prices ranging from $260.71 to $315.95 per square foot. The net sale price refers to the base price less allowance, if any, the lot premium (less premium allowance), the net options (takes into account option allowance), the mortgage concessions and any additional sales allowance. There are currently six escrows of Ridgeline Plan 3 with a sales price range of $263.42 to $338.41 per square foot. It should be noted that most homebuyers purchase some upgrades, premiums and options and most sales in today’s market include concessions given by the builder. The escrows do not reflect the mortgage concessions which ranged from zero to $57,799 on the closed sales. Our concluded price is based on the base price of the home with no upgrades, premiums, or options, less all concessions. All homes appear to be in excellent condition with no depreciation visible. It has been concluded that Ridgeline Plan 3 has a base current market value of $255.00 per square foot. This calculates as follows:

2,641 sf x $255.00 = $673,455

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

Data Plan Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 1 3 / 2 1 / 2 2,191 --
1 1 4 / 2 1 / 2 1,959 $309.85
2 1 3 / 2 1 / 2 2,070 $296.13
5 3 3 / 2 1 / 2 1,840 $301.08
5 4 3 / 2.5 2 / 2 1,976 $283.90
6 3 4 / 2 1 / 2 2,027 $280.71
8 3 3 / 2 1 / 2 1,941 $304.31
9 4 3 / 2 1 / 2 2,026 $294.17
9 5 4 / 2 1 / 2 2,198 $298.45
11 2 3 / 2 1 / 2 1,882 $372.47
11 3 4 / 2 1 / 2 2,026 $355.87

There are currently three escrows of Fairfield Plan 1 with a sales price range of $273.39 to $366.13 per square foot with the highest escrow reflecting a very good view. It should be noted that most homebuyers purchase some upgrades, premiums and options and most sales in today’s market include concessions given by the builder. The escrows do not reflect the mortgage concessions which ranged from zero to $52,235 on the closed sales. Our concluded price is based on the base price of the home with no upgrades, premiums, or options, less all concessions. All homes appear to be in excellent condition with no depreciation visible. It has been concluded that Fairfield Plan 1 has a base current market value of $270.00 per square foot. This calculates as follows:

2,191 sf x $270.00 = $591,570
_________________________________________________________________________________________________________ Appraisal Report
City of Lake Elsinore CFD No. 2022-1 (Alberhill)
Kitty Siino & Associates, Inc. Page 69
The most appropriate new home comparable data for Fairfield Plan 2 are shown below.

Data Plan Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 2 4 / 2.5 2 / 2 2,654 --
2 3 5 / 3 1 / 3 2,641 $268.46
4 1 4 / 2.5 2 / 3 2,792 $246.77
6 6 4 / 2.5 2 / 2 2,517 $236.79
7 2 4 / 3 2 / 2 2,532 $267.50
7 3 4 / 3 2 / 2 2,744 $241.25
8 5 5 / 3 2 / 3 2,532 $252.57
9 7 4 / 2.5 2 / 2 2,528 $296.28
10 3 5 / 3 2 / 3 2,537 $307.45
11 5 4 / 2.5 2 / 2 2,613 $294.29
12 4 4 / 3.5 2 / 2 2,617 $323.27

It should be noted that approximately one-half of Fairfield homes have good to excellent views. There have been 12 closings of Plan 2 with net sale prices ranging from $242.27 to $271.54 per square foot. The net sale price refers to the base price less allowance, if any, the lot premium (less premium allowance), the net options (takes into account option allowance), the mortgage concessions and any additional sales allowance. There are currently five escrows of Fairfield Plan 2 with a sales price range of $239.63 to $274.68 per square foot. It should be noted that most homebuyers purchase some upgrades, premiums and options and most sales in today’s market include concessions given by the builder.

The escrows do not reflect the mortgage concessions which ranged from zero to $48,526 on the closed sales. Our concluded price is based on the base price of the home with no upgrades, premiums, or options, less all concessions. All homes appear to be in excellent condition with no depreciation visible. It has been concluded that Fairfield Plan 2 has a base current market value of $240.00 per square foot. This calculates as follows:

2,654 sf x $240.00 = $636,960
_________________________________________________________________________________________________________ Appraisal Report
City of Lake Elsinore CFD No. 2022-1 (Alberhill)
Kitty Siino & Associates, Inc. Page 70

The most appropriate new home comparable data for Fairfield Plan 3 are shown below.

Data Plan Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 3 5 / 3 2 / 2 2,824 --
1 3 5 / 3 2 / 2 2,824 $237.60
4 1 4 / 2.5 2 / 3 2,792 $246.77
7 3 4 / 3 2 / 2 2,744 $241.25
7 4 5 / 3 2 / 2 2,932 $238.40
9 8 5 / 3 2 / 2 2,874 $228.25
10 4 5 / 4 2 / 3 2,929 $283.37
11 6 5 / 3 2 / 2 2,874 $276.61

It should be noted that approximately one-half of Fairfield homes have good to excellent views. There have been 16 closings of Plan 3 with net sale prices ranging from $219.88 to $283.84 per square foot. The net sale price refers to the base price less allowance, if any, the lot premium (less premium allowance), the net options (takes into account option allowance), the mortgage concessions and any additional sales allowance. There is currently one escrow of Fairfield Plan 3 with a sales price of $235.30 per square foot. It should be noted that most homebuyers purchase some upgrades, premiums and options and most sales in today’s market include concessions given by the builder. The escrows do not reflect the mortgage concessions which ranged from zero to $54,040 on the closed sales. Our concluded price is based on the base price of the home with no upgrades, premiums, or options, less all concessions. All homes appear to be in excellent condition with no depreciation visible. It has been concluded that Fairfield Plan 3 has a base current market value of $230.00 per square foot. This calculates as follows:

2,824 sf x $230.00 = $649,520

Data Plan Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 1 4 / 2.5 2 / 3 2,792 --
1 3 5 / 3 2 / 2 2,824 $237.60
3 3 5 / 3 2 / 2 2,824 $233.35
7 3 4 / 3 2 / 2 2,744 $241.25
7 4 5 / 3 2 / 2 2,932 $238.40
9 8 5 / 3 2 / 2 2,874 $228.25
10 4 5 / 4 2 / 3 2,929 $283.37
11 6 5 / 3 2 / 2 2,874 $276.61

It should be noted that approximately one- half of Linden homes have good to excellent views. There have been 20 closings of Plan 1 with net sale prices ranging from $228.95 to $318.22 per square foot. The net sale price refers to the base price less allowance, if any, the lot premium (less premium allowance), the net options (takes into account option allowance), the mortgage concessions and any additional sales allowance. There is currently one escrow of Linden Plan 1 with a sales price of $243. 55 per square foot. It should be noted that most homebuyers purchase some upgrades, premiums and options and most sales in today’s market include concessions given by the builder. The escrows do not reflect the mortgage concessions which ranged from zero to $54,944 on the closed sales. Our concluded price is based on the base price of the home with no upgrades, premiums, or options, less all concessions. All homes appear to be in excellent condition with no depreciation visible. It has been concluded that Linden Plan 1 has a base current market value of $240.00 per square foot. This calculates as follows:

2,792 sf x $240.00 = $670,080

The most appropriate new home comparable data for Linden Plan 2 are shown below. _________________________________________________________________________________________________________ Appraisal Report
City of Lake Elsinore CFD No. 2022-1 (Alberhill)
Kitty Siino & Associates, Inc. Page 72
Data Plan Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 2 4 / 3.5 2 / 3 2,988 --
1 3 5 / 3 2 / 2 2,824 $237.60
3 3 5 / 3 2 / 2 2,824 $233.35
4 1 4 / 2.5 2 / 3 2,792 $246.77
7 4 5 / 3 2 / 2 2,932 $238.40
9 8 5 / 3 2 / 2 2,874 $228.25
10 4 5 / 4 2 / 3 2,929 $283.37
10 5 5 / 3 2 / 3 3,015 $284.24
11 6 5 / 3 2 / 2 2,874 $276.61

The new home comparables are all located within the subject’s City of Lake Elsinore, Temescal Valley and Wildomar. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. It should be noted that there is an option on Plan 2 to create a suite out of the tandem garage which increases the home size to 3,216 square feet. This information on a per lot basis was not available to the appraiser, thus the lower square footage was utilized in the valuation for Plan 2. The comparable new home base prices range from $228.25 to $284.24 per square foot. The asking base price for Linden Plan 2 is currently $235.94 per square foot. It should be noted that approximately one-half of Linden homes have good to excellent views. There have been 21 closings of Plan 2 with net sale prices ranging from $237.50 to $ 328.39 per square foot. The net sale price refers to the base price less allowance, if any, the lot premium (less premium allowance), the net options (takes into account option allowance), the mortgage concessions and any additional sales allowance.

There is currently one escrow of Linden Plan 2 with a sales price of $251.00 per square foot. It should be noted that most homebuyers purchase some upgrades, premiums and options and most sales in today’s market include concessions given by the builder. The escrows do not reflect the mortgage concessions which ranged from zero to $63,943 on the closed sales. Our concluded price is based on the base price of the home with no upgrades, premiums, or options, less all concessions. All homes appear to be in excellent condition with no depreciation visible. It has been concluded that Linden Plan 2 has a base current market value of $235.00 per square foot. This calculates as follows:

2,988 sf x $235.00 = $702,180
_________________________________________________________________________________________________________ Appraisal Report
City of Lake Elsinore CFD No. 2022-1 (Alberhill)
Kitty Siino & Associates, Inc. Page 73

The most appropriate new home comparable data for Linden Plan 3 are shown below.

Data Plan Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 3 5 / 4 2 / 3 3,337 --
4 2 4 / 3.5 2 / 3 2,988 $235.94
7 4 5 / 3 2 / 2 2,932 $238.40
10 4 5 / 4 2 / 3 2,929 $283.37
10 5 5 / 3 2 / 3 3,015 $284.24
13 6 5 / 3.5 2 / 2 3,040 $219.17
14 2 5 / 3 2 / 2 3,010 $197.78
14 3 5 / 3.5 2 / 2 4,134 $181.84

The new home comparables are all located within the subject’s City of Lake Elsinore, Temescal Valley, Wildomar and Perris. All are of similar quality, design, and appeal.

Adjustments were considered (when applicable) for location, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. It should be noted that there is an option on Plan 3 to create a suite out of the tandem garage which increases the home size to 3,610 square feet. This information on a per lot basis was not available to the appraiser, thus the lower square footage was utilized in the valuation for Plan 3. The comparable new home base prices range from $181.84 to $ 284.24 per square foot with the lowest priced plans located in Perris, an inferior location that has been included due to minimal homes with a similar size.

The asking base price for Linden Plan 1 is currently $220.85 per square foot. It should be noted that approximately one-half of Linden homes have good to excellent views. There have been 21 closings of Plan 3 with net sale prices ranging from $221.69 to $311.06 per square foot. The net sale price refers to the base price less allowance, if any, the lot premium (less premium allowance), the net options (takes into account option allowance), the mortgage concessions and any additional sales allowance. There are currently three escrows of Linden Plan 3 with a sales price range of $235.34 to $300.19 per square foot.

It should be noted that most homebuyers purchase some upgrades, premiums and options and most sales in today’s market include concessions given by the builder. The escrows do not reflect the mortgage concessions which ranged from zero to $59,750 on the closed sales. Our concluded price is based on the base price of the home with no upgrades, _________________________________________________________________________________________________________ Appraisal Report
City of Lake Elsinore CFD No. 2022-1 (Alberhill)
Kitty Siino & Associates, Inc. Page 74
premiums, or options, less all concessions. All homes appear to be in excellent condition with no depreciation visible. It has been concluded that Linden Plan 3 has a base current market value of $220.00 per square foot. This calculates as follows:

3,337 sf x $220.00 = $734,140

Builder Owned Retail Value

Within Alberhill Ranch there are 28 production homes over 95 percent complete and seven completed models for a total of 35 houses being valued in this section . Per interviews with builders, upgrades and landscape/hardscape of up to $100,000 are installed in the model homes, however, the builders generally consider this a marketing cost and do not anticipate recovering this investment on a dollar-for-dollar basis. Based on historical information, home sizes and fixtures, actual model home sales within the subject area and the current real estate market, a consideration of a $6 0,000 premium has been included with each of the model homes. In addition to the model upgrades, approximately one-half of the homes within Linden and Fairfield have good to excellent views. We have considered a $ 15,000 average view premium for the builder -owned homes within Fairfield and Linden (based on a $30,000 average view premium on one- half of the lots). The retail base value conclusions for the builder -owned homes are calculated below.

Crestly at Alberhill:

Plan 1 (3 x $587,700) $ 1,763,100
Plan 2 (3 x $601,000) 1,803,000
Plan 3 (4 x $649,520) 2,598,080
Model Upgrades (1 x $60,000) 60,000
Ridgeline at Alberhill:

Plan 1 (2 x $589,950) $ 1,179,900
Plan 2 (2 x $622,080) 1,244,160
Plan 3 (3 x 673,455) 2,020,365
Model Upgrades (2 x $60,000) 120,000
Fairfield at Alberhill:

Plan 1 (1 x $591,570) $ 591,570
Plan 2 (5 x $636,960) 3,184,800
Plan 3 (2 x $649,520) 1,299,040
Model View + Upgrades (2 x $75,000) 150,000
View Upgrades (6 x $15,000) 90,000
_________________________________________________________________________________________________________ Appraisal Report
City of Lake Elsinore CFD No. 2022-1 (Alberhill)
Kitty Siino & Associates, Inc. Page 75
Linden at Alberhill:

Plan 1 (4 x $670,080) $ 2,680,320
Plan 2 (3 x $702,180) 2,106,540
Plan 3 (3 x $734,140) 2,202,420
Model View + Upgrades (2 x 75,000) 150,000
View Upgrades (8 x $15,000) 120,000
Total Alberhill Builder-Owned Homes $ 23,363,295 Absorption Period
In order to arrive at an absorption period for the builder-owned homes within Alberhill, the absorption rates for the subject communities along with comparable projects have been reviewed. The average monthly sales rate in Alberhill (including all four neighborhoods) is

12.1 homes per month with the neighborhoods ranging each ranging from 2.6 to 3.5 sales per month. The comparable sales have average sales rates ranging from 3.0 to 5.7 sales per month. Nineteen of the 28 production homes over 95 percent complete are in escrow.

We have concluded that the 35 builder-owned homes will be absorbed over a six-month time period at the concluded prices.

Remaining Costs
As discussed under the property description section above there are $21, 594.47 in remaining land development costs and fees per lot. This equates to $7 55,806 in remaining land development costs associated with the 35 homes over 95 percent complete, owned by the builder. For purposes of our analysis, it is assumed these costs will be expended evenly over the six-month absorption time period.

Expenses
In determining an expense rate, several builders in the subject area have been interviewed as to their expenses on selling existing inventory. Expenses include marketing and general administrative costs. These costs typically range from six to ten percent depending on varying factors such as absorption period, intensity of marketing, etc. Eight percent has been estimated for marketing expenses and two percent for general and administrative costs for a total of ten percent in expenses for the subject neighborhood’s analyses. _________________________________________________________________________________________________________ Appraisal Report
City of Lake Elsinore CFD No. 2022-1 (Alberhill)
Kitty Siino & Associates, Inc. Page 76

Profit
Several interviews with merchant builders in the area were conducted in order to determine an appropriate profit percentage for the subject properties . D evelopers typically attempted to achieve a 10 to 12 percent profit based on gross sales proceeds.

During recessionary times, this range is typically lowered considerably to six to eight percent with some builders drastically lowering their profit margins in order to maintain their work force. As the market improved, so did the profits, however as the mark et slows, the profits decline. An eight percent profit is considered appropriate in the analysis for this community in today’s market.

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

1. Interviews with merchant builders in the Riverside County market area

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

3. The quality, construction, historical sales and product on the subject property

4. Discussed the project with equity investors and master plan community developers

The sales rate of homes within Alberhill which has been around the average on a per project basis has also been taken into consideration in the discount rate. Based on the above factors, a t welve percent discount rate is considered appropriate for the subject neighborhood.

Discounted Cash Flow Summary
The discounted revenue (see DCF Analyses in Addenda) for the builder owned homes resulted in the value of $17,774,819.

Alberhill Ranch – Builder Ownership Final Valuation

Pulte owns 85 lots, 17 which are under construction, along with 35 homes that are over 95 percent complete, including seven model homes. Nineteen of the production homes, over 95 percent complete are in escrow. The final value conclusion for the Builder owned property is shown below.
_________________________________________________________________________________________________________ Appraisal Report
City of Lake Elsinore CFD No. 2022-1 (Alberhill)
Kitty Siino & Associates, Inc. Page 77
85 lots $ 21,964,470
35 Pulte Owned Houses $1 7,774,819
Total Pulte Home Ownership Valuation $39,739,289

Alberhill - Individual Owners Value Conclusion

In determining the value for the individually owned homes, we have considered the concluded base price value for the homes (taking into consideration all concessions including mortgage concessions) which is considered a minimum market value. This is due to homebuyers typically purchasing some upgrades and options or paying premiums for the lot and in some cases views Within Alberhill, there are 224 individually owned homes. In addition, we have included a view premium of $30,000 for one half of the homes within Fairfield and Linden or for 54 homes. The concluded values are shown below:

Crestly at Alberhill:

Plan 1 (22 x $587,700) $ 12,929,400
Plan 2 (16 x $601,000) 9,616,000
Plan 3 (19 x $649,520) 12,340,880
Ridgeline at Alberhill:

Plan 1 (22 x $589,950) $ 12,978,900
Plan 2 (20 x $622,080) 12,441,600
Plan 3 (18 x $673,455) 12,122,190
Fairfield at Alberhill:

Plan 1 (17 x $591,570) $ 10,056,690
Plan 2 (12 x $636,960) 7,643,520
Plan 3 (16 x $649,520) 10,392,320
Linden at Alberhill:

Plan 1 (20 x $670,080) $ 13,401,600
Plan 2 (21 x $702,180) 14,745,780
Plan 3 (21 x $734,140) 15,416,940
View Upgrades (54 x 30,000) 1,620,000
Total Alberhill Individually Owned $ 145,705,820

In an additional analysis, we have reviewed the actual builder sales prices for the homes within Alberhill. Closings occurred between April 24, 2024, and October 6, 2025. The builder reported closing prices for the 224 individually owned homes total $158,204,855.

The actual sales prices include upgrades, premiums or options purchased by the homeowner along with all concessions given by the builder while our concluded value is _________________________________________________________________________________________________________ Appraisal Report
City of Lake Elsinore CFD No. 2022-1 (Alberhill)
Kitty Siino & Associates, Inc. Page 78
for the base value of the homes , plus view premiums less the concessions. The actual sales prices are about eight percent higher than the concluded base prices. This difference is due to the options, upgrades and premiums which were purchased which typically increase the actual home prices over the base value . It is our opinion these factors further substantiates the concluded minimum market values for the Alberhill individually owned homes.
_________________________________________________________________________________________________________ Appraisal Report
City of Lake Elsinore CFD No. 2022-1 (Alberhill)
Kitty Siino & Associates, Inc. Page 79

APPRAISAL REPORT SUMMARY

The appraisal assignment was to value the subject property within Lake Elsinore CFD No. 2022-1 which includes 344 proposed homes within the master planned community of Alberhill, located in Lake Elsinore. Alberhill is being developed by Pulte Homes into four neighborhoods known as Crestly by Centex (a subsidiary of Pulte Homes) and Ridgeline, Fairfield, and Linden by Pulte Homes . The lands have all been developed to generally finished lots and range from completed, individually owned houses to houses under construction to generally finished lots . The homes are currently being marketed with 224 of the proposed 344 houses closed to individuals and another 31 in escrow which are due to close upon completion.

The subject property was valued utilizing the Sales Comparison Approach to value along with a mass appraisal technique. In the case of multiple builder -owned properties, a Discounted Cash Flow was also utilized in the valuation process. The valuation took into consideration the improvements/benefits to be funded by Special Tax Lake Elsinore CFD No. 2022-1 Bond Proceeds along with the Lake Elsinore CFD No. 2022-1 special tax lien. The concluded aggregate value for the subject property, subject to their respective special tax lien, is:

Alberhill – Lake Elsinore CFD No. 2022-1
Pulte Ownership (35 Homes & 85 lots) $ 39,739,289
Individual Owned (224 homes) $ 145,705,820

Aggregate Value of Lake Elsinore CFD No. 2022-1 $ 185,445,109

The above values are stated as of said date of value and subject to the attached Assumptions and Limiting Conditions and Appraiser’s Certification. _________________________________________________________________________________________________________ Appraisal Report
City of Lake Elsinore CFD No. 2022-1 (Alberhill)
Kitty Siino & Associates, Inc. Page 80
APPRAISER’S CERTIFICATION

The appraiser certifies that to the best of his knowledge and belief:

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

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

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

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

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

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

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

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

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

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

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

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

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

ADDENDA

LAKE ELSINORE CFD NO. 2022-1

BOUNDARY MAP

TRACT MAP NO. 28214-9

DISCOUNTED CASH FLOW ANALYSES

Alberhill Pulte-Owned Houses Discounted Cash Flow Analysis

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

Retail Sales 23,363,295 $3,893,883 $3,893,883 $3,893,883 $3,893,883 $3,893,883 $3,893,883 $23,363,295

TOTAL INCOME $3,893,883 $3,893,883 $3,893,883 $3,893,883 $3,893,883 $3,893,883 $23,363,295

EXPENSES:

Remaining Costs ($125,967) ($125,968) ($125,968) ($125,967) ($125,968) ($125,968) ($755,806) Marketing & Carrying
Expenses 10% ($389,388) ($389,388) ($389,388) ($389,388) ($389,388) ($389,388) ($2,336,330) Profit 8% ($311,511) ($311,511) ($311,511) ($311,511) ($311,511) ($311,511) ($1,869,064)

TOTAL EXPENSES ($826,866) ($826,867) ($826,867) ($826,866) ($826,867) ($826,867) ($4,961,199)

NET CASH FLOW $3,067,017 $3,067,016 $3,067,016 $3,067,017 $3,067,016 $3,067,016 $18,402,096 Discount Factor 12% 0.9901 0.9803 0.9706 0.9610 0.9515 0.9420

DISCOUNTED CASH FLOW $3,036,650 $3,006,583 $2,976,815 $2,947,343 $2,918,160 $2,889,267 $17,774,819

CUMULATIVE DISCOUNTED $3,036,650 $6,043,233 $9,020,049 $11,967,391 $14,885,552 $17,774,819 $17,774,819

CASH FLOW

FINISHED LOT LAND SALES MAP
& SUMMARY CHART

FINISHED LOT LAND SALES MAP

FINISHED LOT LAND SALES SUMMARY CHART

Data
No. Location / APN / Buyer / Seller Sales #
Lots Lot Size Sales Price /
Est.

Finished Comments
Date Price per Lot Lot Price
Subject
Alberhill Ranch 344 / Southwest of
Nichols Road and Alberhill Ranch Road,
Lake Elsinore / Pulte Group / Lansing
Companies
May 2022 344 5,500 /
6,000
Closed with an approved
Final Map in an
unimproved condition.
1 Mission Trail / Northwest of Mission Trail
and Lemon Street, Lake Elsinore / 370-
050-019 / The New Home Company /
Coastal Commercial Partners
May 2025 191
Detached
Courtyard
Clusters
$16,300,000 /
$85,340 $211,000
Closed with an approved
Final Map in an
unimproved condition.

2 Saddleback / Northwest of De Palma
Road and Horsethief Canyon Road,
Temescal Valley / 393-642-014 / Trumark
Homes / Diversified Pacific
December
2024 224 6,000 $16,500,000 /
$73,661 $400,000
Closed with an approved
Final Map in an
unimproved condition.

3 Tuscany Crest / Southwest of Greenwald
Avenue and Little Valley Road, Lake
Elsinore / 349-240-054 / KB Home /
Shopoff Realty Investments
October
2024 335 5,000 $13,000,000 /
$38,806 $247,000
Closed with an approved
Final Map in an
unimproved condition.

4A
Sycamore Highlands 2nd Takedown /
East of Towhee Lane and Quince Court,
Temescal Valley / 393-710-007 / D.R.

Horton / Jen Partners
July
2024 24 4,050 $7,548,703/
$314,529 $361,300
Closed with a Recorded
Final Map in a Finished Lot
Condition.

4B
Sycamore Highlands 1st Takedown / East
of Towhee Lane and Quince Court,
Temescal Valley / 393-710-007 / D.R.

Horton / Jen Partners
May
2024 25 4,050 $7,863,233 /
$314,529 $361,300
Closed with a Recorded
Final Map in a Finished Lot
Condition.

5 JBJ Ranch Phase 1 / Northwest of
Bosley Lane and Horsethief Canyon
Road, Temescal Valley / 393-682-026 /
KB Home / Mission Pacific
December
2023 203 5,000 $27,539,637 /
$135,663 $295,000
Closed with an approved
Final Map in an
unimproved condition

6 Murrieta Creek Estates / Northwest of
Palomar Street and Starbuck Circle,
Wildomar / 380-550-001 / D.R. Horton /
R&R Wildomar
June
2023 117 7,200 $7,000,000/
$59,829

$265,000
Closed with an approved
Final Map in an
unimproved condition.

7 Terracina / Terra Cotta Road and
Terracina Lane, Lake Elsinore / 389-920-
022 / KB Home / Spectrum Communities
June
2021 399 4,500 /
5,000
$24,000,000 /
$60,150 $195,000
Closed with an approved
TTM in an unimproved
condition.

IMPROVED RESIDENTIAL SALES MAP
& SUMMARY CHART

IMPROVED RESIDENTIAL SALES MAP

IMPROVED RESIDENTIAL SALES SUMMARY CHART

Data
No.

Project Name
Location/Developer Plan Room
Count
Floors/
Parking Size (SF)
Lot Size or
Density /
Absorption
Base Sales
Price Price/SF
1 Crestly at Alberhill Ranch,SEC
Nichols Road and Alberhill Ranch
Road, Lake Elsinore / Centex Homes
1 4 / 2 1 / 2 1,959 6,000 sf lots $606,990 $309.85
2 5 / 2.5 2 / 2 2,404 2.9 sales/mo $633,990 $263.72
3 5 / 3 2 / 2 2,824 $670,990 $237.60
2 Ridgeline at Alberhill Ranch, South of
Alberhill Ranch Road at Hudson
Lane, Lake Elsinore / Pulte Homes
1 3 / 2 1 / 2 2,070 6,000 sf lots $612,990 $296.13
2 3 / 2 1 / 3 2,304 3.5 sales/mo $646,990 $280.81
3 5 / 3 1 / 3 2,641 $708,990 $268.46
3 Fairfield at Alberhill Ranch, SEC
Nichols Road and Alberhill Ranch
Road, Lake Elsinore / Pulte Homes
1 3 / 2 1 / 2 2,191 6,000 sf lots $596,990 $272.47
2 4 / 2.5 2 / 2 2,654 2.6 sales/mo $643,990 $242.65
3 5 / 3 2 / 2 2,824 $658,990 $233.35
4 Linden at Alberhill Ranch, South of
Alberhill Ranch Road at Merrifield
Street, Lake Elsinore / Pulte Homes
1 4 / 2.5 2 / 3 2,792 6,000 sf lots $688,990 $246.77
2 4 / 3.5 2 / 3 2,988 3.2 sales/mo $704,990 $235.94
3 5 / 4 2 / 3 3,337 $736,990 $220.85
5 Carrera at Terracina / NEC
Lakeshore Drive and Terra Cotta
Road, Lake Elsinore / KB Home
1 3 / 2 1 / 2 1,435 $520,990 $363.06
2 3 / 2 1 / 2 1,663 $540,990 $325.31
3 3 / 2 1 / 2 1,840 4,500 sf lots $553,990 $301.08
4 3 / 2.5 2 / 2 1,976 5.0 sales/mo $560,990 $283.90
5 3 / 2.5 2 / 2 2,139 $577,990 $270.22
6 4 / 3 2 / 2 2,389 $602,990 $252.40
6 Villa Real at Terracina / NEC
Lakeshore Drive and Terra Cotta
Road, Lake Elsinore / KB Home
1 3 / 2 1 / 2 1,539 $527,990 $343.07
2 3 / 2 1 / 2 1,742 $544,990 $312.85
3 4 / 2 1 / 2 2,027 4,500 sf lots $568,990 $280.71
4 3 / 2.5 2 / 2 2,218 5.4 sales/mo $581,990 $262.39
5 4 / 3 2 / 2 2,453 $610,990 $249.08
6 4 / 2.5 2 / 2 2,517 $595,990 $236.79
7 Highland at Nichols Ranch, SEC
Nichols Road and I-15, Lake Elsinore
/ Meritage Homes
1 4 / 3 2 / 2 2,308 $649,000 $281.20
2 4 / 3 2 / 2 2,532 5,000 sf lots $677,300 $267.50
3 4 / 3 2 / 2 2,744 3.0 sales/mo $662,000 $241.25
4 5 / 3 2 / 2 2,932 $699,000 $238.40
8 Echo Highlands / SEC Laguna
Avenue and Riverside Drive, Lake
Elsinore / Tri Pointe Homes
1 2 / 2 1 / 2 1,569 $573,647 $365.61
2 3 / 2 1 / 2 1,758 7,000 sf lots $580,500 $330.20
3 3 / 2 1 / 2 1,941 4.5 sales/mo $590,665 $304.31
4 4 / 3 2 / 2 2,216 $597,000 $269.40
5 5 / 3 2 / 3 2,532 $639,500 $252.57

9 Crimson Hills / Rosetta Canyon Drive
and Elsinore Hills Road, Lake
Elsinore / KB Home
1 3 / 2 1 / 2 1,552 $558,990 $360.17
2 3 / 2 1 / 2 1,743 $587,990 $337.34
3 3 / 2 1 / 2 1,751 7,200 sf lots $658,990 $376.35
4 3 / 2 1 / 2 2,026 3.7 sales/mo $595,990 $294.17
5 4 / 2 1 / 2 2,198 $655,990 $298.45
6 4 / 2.5 2 / 2 2,519 $658,990 $261.61
7 4 / 2.5 2 / 2 2,528 $748,990 $296.28
8 5 / 3 2 / 2 2,874 $655,990 $228.25
10 Avalino / Washington Avenue and
Olivet Way, Wildomar / D.R. Horton
1 4 / 3 1 / 3 1,898 $749,990 $395.15
2 4 / 3 2 / 3 2,239 7,200 sf lots $739,990 $330.50
3 5 / 3 2 / 3 2,537 5.1 sales/mo $779,990 $307.45
4 5 / 4 2 / 3 2,929 $829,990 $283.37
5 5 / 3 2 / 3 3,015 $856,990 $284.24
11 Monteverdi / NW Horsethief Canyon
Road and Mountain Road, Temescal
Valley / KB Home
1 3 / 2 1 / 2 1,618 $676,990 $418.41
2 3 / 2 1 / 2 1,882 $700,990 $372.47
3 4 / 2 1 / 2 2,026 5,500 sf lots $720,990 $355.87
4 3 / 2.5 2 / 2 2,283 3.6 sales/mo $737,990 $323.25
5 4 / 2.5 2 / 2 2,613 $768,990 $294.29
6 5 / 3 2 / 2 2,874 $794,990 $276.61
12 Sycamore Highlands / Towhee Lane
and Guffey Ranch Way, Temescal
Valley / D.R. Horton
1 3 / 2.5 2 / 2 1,983 $719,990 $363.08
2 4 / 3 2 / 2 2,079 4,050 sf lots $739,990 $355.94
3 5 / 3 2 / 2 2,537 3.3 sales/mo $923,990 $364.21
4 4 / 3.5 2 / 2 2,617 $845,990 $323.27
13 Seasons at Green Valley Ranch /
NWC Murrieta Rd and Green Valley
Pkwy, Perris / Richmond American
1 3 / 2 1 / 2 1,400 $559,988 $399.99
2 4 / 2 1 / 2 1,740 $568,990 $327.01
3 4 / 3 1 / 2 2,080 6,500 sf lots $599,990 $288.46
4 4 / 3.5 2 / 2 2,375 3.1 sales/mo $616,466 $259.56
5 4 / 3.5 2 / 2 2,680 $623,709 $232.73
6 5 / 3.5 2 / 2 3,040 $666,278 $219.17
14 Amber Ridge at Green Valley Ranch
/ NWC Murrieta Rd and Green Valley
Pkwy, Perris / Lennar
1 4 / 3 2 / 2 2,583 6,500 sf lots $557,335 $215.77
2 5 / 3 2 / 2 3,010 5.7 sales/mo $595,325 $197.78
3 5 / 3.5 2 / 2 4,134 $751,720 $181.84

APPRAISER’S QUALIFICATIONS

QUALIFICATIONS OF KITTY S. SIINO, MAI

Education

Bachelor of Arts in Business Administration, Financial Investments, California State University, Long Beach, California (1980)

Post-Graduate Study, Real Estate Development, University of California, Irvine, California

Appraisal Institute Classes: Uniform Standards of Professional Appraisal Practice, A & B; Appraisal Principles; Appraisal Procedures; Basic Income Capitalization; Advanced Income Capitalization; Narrative Report Writing; Advanced Applications, Case Studies.

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

Employment

1988 - Present:

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

1986-1988:

Project Manager of Development for Ferguson Partners, Irvine, California. Duties included land acquisitions; review of fee appraisals and valuations; analysis of proposed development; planning and design; and management of development, construction and lease-up. The types of properties developed were commercial and industrial. Duties ranged from raw, vacant site development through property management of recently developed projects.

1981 - 1986
Manager of Finance, Construction for Community Development Division, The Irvine Company, Irvine, California. Duties included originating and managing a newly formed division of finance to bridge between the accounting functions and project management functions. Worked with analysis and budgets for Community Development Division. Coordinated with cities in forming new Assessment Districts and Community Facilities Districts to finance major infrastructure improvements.

Types of properties were apartments and single- family residential lots on a for sale basis to apartment and homebuilders.

1980 - 1981
Investment Counselor, Newport Equity Funds, Newport Beach, California. Duties included obtaining private financing for residential properties, working with appraisals of properties and analyzing the investments.

Licenses
Real Estate Sales Person, State of California, 1980
Certified General Appraiser, State of California (#AG004793)

Organizations
MAI #11145 - The Appraisal Institute

Public Financing
CASTOFF Meetings, 2006, 2007, 2008, 2009, 2010, 2011, 2013, 2014, 2015, 2016, 2017 and 2018

Speaker, Mello- Roos & Special Assessment Financing, UCLA Extension Publi c Policy Program, February 2009 and March 2011

Lake Elsinore City CouncilNovember 18, 2025

Lake Elsinore City Council
November 18, 2025