Agenda packet — Lancaster City Council, June 14, 2022 (part 5 of 5)

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Section 6. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is held for any reason to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional.

Section 7. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance, and shall cause the same to be published and posted pursuant to the provisions of law in that regard and this Ordinance shall take effect 30 days after adoption.

I, , City Clerk of the City of Lancaster, do hereby certify that the foregoing ordinance was regularly introduced and placed upon its first reading on the __________ day of ________________, 2022, and placed upon its second reading and adoption at a regular meeting of the City Council on the ____ day of ________________, 2022, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST: APPROVED:
____________________________ ______________________________ R. REX PARRIS
City Clerk Mayor
City of Lancaster City of Lancaster
STATE OF CALIFORNIA }
COUNTY OF LOS ANGELES }ss
CITY OF LANCASTER }
Ordinance No. 1090

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CERTIFICATION OF ORDINANCE

CITY COUNCIL
I, ________________________________, ___________________________________ City of Lancaster, California, do hereby certify that this is a true and correct copy of the original Ordinance No. 1090, for which the original is on file in my office.

WITNESS MY HAND AND THE SEAL OF THE CITY OF LANCASTER, on this _________ day of ________________, ________.
(seal)
___________________________________

Ordinance No. 1090

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ZONE TEXT AMENDMENT 21-01

HOUSING DENSITY OVERLAY
Chapter 17.20 – Public, Open Space and Special Purpose Zones NEW Article IX - Housing Density Overlay (HD-O) Zone

17.20.730 - Purpose and intent.

The purpose and intent of the Housing Density Overlay Zone (HD-O) is to provide flexibility and opportunities for additional housing types by providing means to achieve a higher maximum allowed density than would otherwise be allowed by the underlying zoning.

17.20.740 - Applicability of standards.

The Housing Density Overlay Zone standards apply only to locations designated on the zoning map with a Housing Density Overlay Zone. A Housing Density Overlay Zone may only be applied to properties within the HDR, C, and CPD zones, upon application by a project proponent or the City, consistent with the provisions of Chapter 17.24.

17.20.750- Development regulations.

Properties designated with the Housing Density Overlay zone shall conform to all standards established within the underlying zone where the overlay is applied, with the following exception:

1. Maximum Density. Residential density shall not exceed 50 dwelling units per acre.

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STAFF REPORT
City of Lancaster
JPH 1
6/14/2022
JC
Date: June 14, 2022
To: Mayor Parris and City Council Members
From: Jeff Hogan, Senior Director - Development Services Chenin Dow, Senior Manager - Real Estate & Economic Development Christopher Aune, Housing Manager - Real Estate & Economic Development Subject: Residential Purchase Agreement and Joint Escrow Instructions for the Sale of the Property to Adrian Godjali
Recommendations:

1. Adopt Resolution No. 22-19, approving a Residential Purchase Agreement and Joint Escrow Instructions for the sale of 45534 5th Street East, accepting the Health and Safety Code Section 33433 Report, and making certain findings pursuant to Health and Safety Code 33433.

2. Authorize the City Manager, or his designee, to execute all related documents.

That the Housing Authority:

1. Adopt Resolution No. HA 2-22, approving a Residential Purchase Agreement and Joint Escrow Instructions for the sale of 45534 5th Street East, accepting the Health and Safety Code Section 33433 Report, and making certain findings pursuant to Health and Safety Code 33433.

2. Authorize the City Manager, or his designee, to execute all related documents.

Fiscal Impact:

Approval of the agreement would provide for revenue ($362,700±) to the Low Moderate-Income Housing Asset Fund (LMIHAF) account number 306-3606-100. The amount of revenue would be the effective purchase price of $390,000.00, minus commissions, report costs, and other smaller costs that are deducted from the purchase price at the close of escrow.

Background:
9 3
8 On August 14, 2007, the Agency Board approved the implementation of the Neighborhood Foreclosure Preservation Home Ownership Program (the “Program”) citywide. The goal of the Program was to reclaim vacant, abandoned properties for affordable housing, strengthen blocks and neighborhoods by eliminating the blighting effects of vacant properties, and enforce the city codes and city building code requirements. The Program was designed to preserve sustainable homeownership for Lancaster residents by reclaiming foreclosed homes as neighborhood assets.

In 2007, the Former Redevelopment Agency purchased 45534 5th Street East and rehabilitated the house under the Foreclosure Program to help offset the impact resulting from foreclosures on the local real estate and housing market.

On July 28, 2009, the City Council and Agency Board Members approved a disposition strategy for properties acquired by the Lancaster Redevelopment Agency Under the Piute Master Vision Plan. The property located at 45534 5 th Street East is included in that disposition strategy.

In 2010, the City of Lancaster created its second community Wellness Home located at 45534 5th Street East. The new Piute Wellness Home was designed to provide neighborhood residents access to pertinent wellness information, as well as a variety of health-related services.

Meanwhile, on January 24, 2012, the Lancaster City Council, adopted Resolution 12-08 assigning the housing functions of the former Lancaster Redevelopment Agency to the Lancaster Housing Authority.

Eventually, due to changing needs, the services for the Wellness Home located at 45534 5th Street East were consolidated at other locations. The home has remained vacant for the past several years.

Earlier this year, staff began receiving ongoing reports regarding vandalism to the house. The staff recommended it would be in the best interest of the neighbors and the City to sell the home and have it occupied immediately.

In May 2021, the City advertised a Request for Qualifications for real estate brokerage services. On July 27, 2021, the City Council selected (4) brokerages to place on a pre-qualified list. Coldwell Banker Commercial A Hartwig Company was on the pre-qualified list, and Dennis Greer was selected to represent the City in the sale of 45534 5th Street East. Mr. Greer proceeded to market the property and received offers for its purchase.

The City had originally received two offers and one applicant has stopped responding. The remaining offer came from Adrian Godjali.

Analysis:

The purchase information for this offer is as follows:
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8 Listing Price $390,000.00
Offer Price $390,00.00
Credit Request $0.00
Effective Purchase Price $390,000.00
Difference from Listing Price $0.00
Loan Type FHA
Down Payment 20%
Escrow Period 30
Occupancy Type Owner-Occupied
Closing Costs $27,300.00
Estimated Net at Close $362,700.00
The Buyer has provided in the purchase agreement that this house will be their primary residence, making the home owner-occupied.

Environmental Review:

Approval of the purchase agreement is exempt from the California Environmental Quality Act (CEQA) as it does not constitute a project pursuant to Section 15378 of the CEQA Guidelines.

The agreement proposes the sale and transfer of the home and does not disturb or impact the physical environment.

CA/sm

Attachments:

Resolution No. 22-19
Resolution No. HA 2-22
Exhibit A: Health and Safety Code 33433 Report
Exhibit B: Residential Purchase Agreement and Joint Escrow Instructions RESOLUTION NO. 22-19

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LANCASTER APPROVING THE RESIDENTIAL PURCHASE

AGREEMENT AND JOINT ESCROW INSTRUCTIONS FOR

THE SALE OF THE PROPERTY TO ADRIAN GODJALI
WHEREAS, California Health and Safety Code Sections 33334.2 and 33334.6 formerly authorized and directed the Lancaster Redevelopment Agency (“Redevelopment Agency”) to expend a certain percentage of all taxes which are allocated to the Redevelopment Agency pursuant to Section 33670 of the California Health and Safety Code for the purposes of increasing, improving and preserving the community’s supply of low- and moderate-income housing available at affordable housing cost to persons and families of low- and moderate-income, lower-income, and very low-income; and
WHEREAS, pursuant to applicable law, the Redevelopment Agency established a Low- and Moderate-Income Housing Fund (“Housing Fund”) and acquired a certain property with the purpose of using such property for the provision of affordable housing development opportunities; and
WHEREAS, by ABx1 26 enacted by the California Legislature during 2011 (“2011 Dissolution Act”), the California Legislature disbanded all redevelopment agencies within the State of California effective as of February 1, 2012, including without limitation the Redevelopment Agency; and
WHEREAS, the 2011 Dissolution Act provides, in part, that the host city of a redevelopment agency was to designate a housing entity to receive the housing assets of the former redevelopment agency within such city; and
WHEREAS, the City Council of the City of Lancaster (“City”) designated the Lancaster Housing Authority (“Authority”) as the housing entity to receive the housing assets of the former Redevelopment Agency; and
WHEREAS, the City Council desires to enter into California Residential Purchase Agreement and Joint Escrow Instructions (the “Agreement”) in order to implement Health & Safety Code Sections 34200-34380 by providing for the sale of property located at 45534 5th Street East, and which development of the Property is consistent with previous uses of the Property as well as existing uses of other real property in the surrounding neighborhood; and WHEREAS, the Agreement does not include affordable housing restrictions, the Project does not require voter approval under Article XXXIV of the State Constitution; and WHEREAS, the site’s status as a former Redevelopment property enables the City to follow redevelopment law’s disposition requirements for market-rate returns and exempts the City from the Surplus Land Act (AB 2135 & AB 1486); and
Resolution No. 22-19

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WHEREAS, the price to be received by the City Council under the Agreement is not less than the fair reuse value of the Site; and
WHEREAS, the City Council is authorized to dispose of interests in Site in the manner prescribed by the California Housing Authorities Law (Division 24, Part 2 of the California Health and Safety Code); and
WHEREAS, a joint public hearing of the Authority and City Council on the proposed Agreement was duly noticed; and
WHEREAS, the proposed Agreement, and a summary report substantially in the form described by Health and Safety Code Section 33433 (“Summary Report”), were available for public inspection prior to the joint public hearing; and WHEREAS, on May 24, 2022, the governing board of the Authority and the City Council held a public hearing on the proposed Agreement, at which time the City Council and the Authority reviewed and evaluated all of the information, testimony, and evidence presented during the joint public hearing; and
WHEREAS, all actions required by all applicable law with respect to the proposed Agreement have been taken in an appropriate and timely manner; and WHEREAS, the City Council has reviewed the Summary Report and has evaluated other information provided to it pertaining to the findings proposed to be made hereunder; and WHEREAS, the City Council has previously determined, in its adoption of the ordinance approving the Redevelopment Project, that the Site is a portion of a blighted area, and is underutilized, as further set forth in the Implementation Plan as previously adopted and amended by the former Redevelopment Agency; and
WHEREAS, the Agreement does not create any new or additional environmental impacts or any environmental requirements applicable to the proposed use of the Property pursuant to the City’s Zoning Ordinance. The Agreement to dispose of the Property and the intended use of the real property is similar in nature to the previous uses of the Property. The use is permitted and is consistent with the General Plan land use designation. The proposed project is not expected to produce any significant impacts on the environment; and WHEREAS, the Authority and the City Council have duly considered all of the terms and conditions of the proposed Agreement and believe that the redevelopment of the Site pursuant to the Agreement is in the best interests of the City of Lancaster and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local laws and requirements.

Resolution No. 22-19

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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LANCASTER, AS FOLLOWS:

Section 1. The City Council finds and determines that the statements set forth in the Recitals above are true, correct, and a substantive part of this Resolution.

Section 2. The City Council hereby determines that voter approval is not required by Article XXXIV of the State Constitution for the reasons set forth above. This Resolution is hereby deemed to constitute final approval of a proposal that may result in housing assistance benefiting persons of low income, within the meaning of Health and Safety Code Section 36005.

Section 3. The City Council finds and determines that, based upon substantial evidence provided in the record before it, the consideration for the City Council’s disposition of the Site pursuant to the terms and conditions of the Agreement is not less than the fair reuse value at the use and with the covenants and conditions and development costs authorized by the Agreement.

Section 4. The City Council hereby finds and determines that the Agreement is consistent with the provisions and goals of the Implementation Plan as previously adopted by the Redevelopment Agency.

Section 5. The City Council hereby approves the Agreement in substantially the form presented to the City Council, subject to such revisions as may be made by the City Manager or his designee. The City Manager is hereby authorized to execute the Agreement (including without limitation all attachments thereto) on behalf of the City. A copy of the Agreement when executed by the City shall be placed on file in the office of the City Clerk of the City.

Section 6. The City Manager (or his designee) is hereby authorized, on behalf of the City, to make revisions to the Agreement which do not materially or substantially increase the City’s obligations thereunder or materially or substantially change the uses or development permitted on the Site, to sign all documents, to make all approvals and take all actions necessary or appropriate to carry out and implement the Agreement and to administer the City’s obligations, responsibilities, and duties to be performed under the Agreement and related documents.

Section 7. Approval of the Agreement is exempt from the California Environmental Quality Act (CEQA) as it does not constitute a project pursuant to Section 15378 of the CEQA Guidelines. The Agreement proposes the sale and transfer of the home and does not disturb or impact the physical environment. City staff has, therefore, determined that this project is not subject to additional environmental review.

Section 8. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end, the provisions of this Resolution are declared to be severable.

Section 9. Effective Date. This Resolution shall become effective immediately.

Resolution No. 22-19

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PASSED, APPROVED, and ADOPTED this _____ day of ______ 2022, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST: APPROVED:

ANDREA ALEXANDER
City Clerk
City of Lancaster
R. REX PARRIS
Mayor
City of Lancaster

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES

CITY OF LANCASTER
)
) ss
)

CERTIFICATION OF RESOLUTION

CITY COUNCIL
I, , City of Lancaster, California, do hereby certify that this is a true and correct copy of the original Resolution No. 22-19, for which the original is on file in my office.

WITNESS MY HAND AND THE SEAL OF THE CITY OF LANCASTER, on this ____ day of _________, 2022.
(seal)
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1 5
RESOLUTION NO. HA 2-22

A RESOLUTION OF THE HOUSING AUTHORITY OF THE

CITY OF LANCASTER APPROVING THE RESIDENTIAL

PURCHASE AGREEMENT AND JOINT ESCROW

INSTRUCTIONS FOR THE SALE OF PROPERTY TO ADRIAN

GODJALI
WHEREAS, California Health and Safety Code Sections 33334.2 and 33334.6 formerly authorized and directed the Lancaster Redevelopment Agency (“Redevelopment Agency”) to expend a certain percentage of all taxes which are allocated to the Redevelopment Agency pursuant to Section 33670 of the California Health and Safety Code for the purposes of increasing, improving and preserving the community’s supply of low- and moderate-income housing available at affordable housing cost to persons and families of low- and moderate-income, lower-income, and very low-income; and
WHEREAS, pursuant to applicable law, the Redevelopment Agency established a Low- and Moderate-Income Housing Fund (“Housing Fund”) and acquired the certain property with the purpose of using such property for the provision of affordable housing development opportunities; and
WHEREAS, by ABx1 26 enacted by the California Legislature during 2011 (“2011 Dissolution Act”), the California Legislature disbanded all redevelopment agencies within the State of California effective as of February 1, 2012, including without limitation the Redevelopment Agency; and
WHEREAS, the 2011 Dissolution Act provides, in part, that the host city of a redevelopment agency was to designate a housing entity to receive the housing assets of the former redevelopment agency within such city; and
WHEREAS, the City Council of the City of Lancaster (“City”) designated the Lancaster Housing Authority (“Authority”) as the housing entity to receive the housing assets of the former Redevelopment Agency; and
WHEREAS, the Authority desires to enter into California Residential Purchase Agreement and Joint Escrow Instructions (the “Agreement”) in order to implement Health & Safety Code Sections 34200-34380 by providing for the sale of property located at 45534 5 th Street East, and which development of the Property is consistent with previous uses of the Property as well as existing uses of other real property in the surrounding neighborhood; and WHEREAS, the Agreement does not include affordable housing restrictions, the Project does not require voter approval under Article XXXIV of the State Constitution; and WHEREAS, the site’s status as a former Redevelopment property enables the City to follow redevelopment law’s disposition requirements for market-rate returns and exempts the City from the Surplus Land Act (AB 2135 & AB 1486); and 2 5
1 5
WHEREAS, the price to be received by the Authority under the Agreement is not less than the fair reuse value of the Site; and
WHEREAS, the Authority is authorized to dispose of interests in Site in the manner prescribed by the California Housing Authorities Law (Division 24, Part 2 of the California Health and Safety Code); and
WHEREAS, a joint public hearing of the Authority and City Council on the proposed Agreement was duly noticed; and
WHEREAS, the proposed Agreement, and a summary report substantially in the form described by Health and Safety Code Section 33433 (“Summary Report”), were available for public inspection prior to the joint public hearing; and WHEREAS, on May 24, 2022, the governing board of the Authority and the City Council held a public hearing on the proposed Agreement, at which time the City Council and the Authority reviewed and evaluated all of the information, testimony, and evidence presented during the joint public hearing; and
WHEREAS, all actions required by all applicable law with respect to the proposed Agreement have been taken in an appropriate and timely manner; and WHEREAS, the Authority has reviewed the Summary Report and has evaluated other information provided to it pertaining to the findings proposed to be made hereunder; and WHEREAS, the City Council has previously determined, in its adoption of the ordinance approving the Redevelopment Project, that the Site is a portion of a blighted area, and is underutilized, as further set forth in the Implementation Plan as previously adopted and amended by the former Redevelopment Agency; and
WHEREAS, the Agreement does not create any new or additional environmental impacts or any environmental requirements applicable to the proposed use of the Property pursuant to the City’s Zoning Ordinance. The Agreement to dispose of the Property and the intended use of the real property is similar in nature to the previous uses of the Property. The use is permitted and is consistent with the General Plan land use designation. The proposed project is not expected to produce any significant impacts on the environment; and WHEREAS, the Authority and the City Council have duly considered all of the terms and conditions of the proposed Agreement and believe that the redevelopment of the Site pursuant to the Agreement is in the best interests of the City of Lancaster and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local laws and requirements.
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NOW, THEREFORE, BE IT RESOLVED BY THE HOUSING AUTHORITY OF THE CITY OF LANCASTER, AS FOLLOWS:

Section 1. The Authority finds and determines that the statements set forth in the Recitals above are true, correct, and a substantive part of this Resolution.

Section 2. The Authority hereby determines that voter approval is not required by Article XXXIV of the State Constitution for the reasons set forth above. This Resolution is hereby deemed to constitute final approval of a proposal that may result in housing assistance benefiting persons of low income, within the meaning of Health and Safety Code Section 36005.

Section 3. The Authority finds and determines that, based upon substantial evidence provided in the record before it, the consideration for the Authority’s disposition of the Site pursuant to the terms and conditions of the Agreement is not less than the fair reuse value at the use and with the covenants and conditions and development costs authorized by the Agreement.

Section 4. The Authority hereby finds and determines that the Agreement is consistent with the provisions and goals of the Implementation Plan as previously adopted by the Redevelopment Agency.

Section 5. The Authority hereby approves the Agreement in substantially the form presented to the Authority, subject to such revisions as may be made by the City Manager or his designee. The City Manager is hereby authorized to execute the Agreement (including without limitation all attachments thereto) on behalf of the Authority. A copy of the Agreement when executed by the Authority shall be placed on file in the office of the Secretary of the Authority.

Section 6. The City Manager (or his designee) is hereby authorized, on behalf of the Authority, to make revisions to the Agreement which do not materially or substantially increase the Authority’s obligations thereunder or materially or substantially change the uses or development permitted on the Site, to sign all documents, to make all approvals and take all actions necessary or appropriate to carry out and implement the Agreement and to administer the Authority’s obligations, responsibilities, and duties to be performed under the Agreement and related documents.

Section 9. Effective Date. This Resolution shall become effective immediately. 2 5
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Resolution No. HA 2-22

Page 2 ends

PASSED, APPROVED, and ADOPTED this ____day of ______, 2022, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST: APPROVED:

ANDREA ALEXANDER
City Clerk
Lancaster Housing Authority

KITY KIT SZETO
Chair
Lancaster Housing Authority

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES

CITY OF LANCASTER
)
) ss
)

CERTIFICATION OF RESOLUTION

LANCASTER HOUSING AUTHORITY
I, , City of Lancaster, California,
do hereby certify that this is a true and correct copy of the original Resolution No. HA 2-22, for which the original is on file in my office.

WITNESS MY HAND AND THE SEAL OF THE CITY OF LANCASTER, on this _____ day of _______, 2022.
(seal)
INFORMATION SUMMARY (33433 REPORT)

FOR THE

SALE OF REAL PROPERTY

WITH PROPOSED HOMEBUYERS

This summary is prepared pursuant to Section 33433 of the California Health and Safety Code.

1. Background:

On August 14, 2007, the Agency Board approved the implementation of the Neighborhood Foreclosure Preservation Home Ownership Program (the “Program”) citywide. The goal of the Program was to reclaim vacant, abandoned properties for affordable housing, strengthen blocks and neighborhoods by eliminating the blighting effects of vacant properties, and enforce the city codes and city building code requirements. The Program was designed to preserve sustainable homeownership for Lancaster residents by reclaiming foreclosed homes as neighborhood assets.

Eventually, due to changing needs, the services for the Wellness Home located at 45534 5th Street East were consolidated at other locations. The home has remained vacant for the past several years.

Earlier this year, staff began receiving ongoin g reports regarding vandalism to the house. The staff recommended it would be in the best interest of the neighbors and the City to sell the home and have it occupied immediately.

2. Cost of the Project to the former Agency/Authority:

The total acquisition price was $202,500.

Improvement costs to the project home included substantial rehabilitation including drought- tolerant landscaping, energy -efficient dual paned windows, and energy - efficient appliances. Property rehabilitation costs were approximately $108,773

The total cost to the former Agency and the Authority is approximately $311,273.

3. Estimated value of interest to be conveyed at the highest and best use permitted by the Redevelopment Plan:

The estimated value of the interest to be conveyed is $390,000, which is based on an independent appraisal.

4. The estimated value of interest to be conveyed at the use and with the conditions, covenants, and restrictions required by the transfer of the property:

The property will be sold at a market rate without affordability covenants. Proceeds will be deposited in the LMIHAF account, and provide leverage for future permanent affordable housing projects.

5. The acquisition price which the homebuyer will be required to pay for the Real Property Transfer Agreement:

The homebuyer will receive title to the property subject to the terms and conditions as outlined within the Sale Agreement. The disposition price of this property is approximately $390,000.

6. Explanation as to the reason why the sale of the Site will assist in the elimination of blight:

The Foreclosure Rehabilitation Program preserved housing and removed blight in the City's mature neighborhoods through substantial rehabilitation. Without encouraging homeownership, the value attributed to the land as a resource would otherwise experience conditions of physical deterioration and blight due to poor use of the property, squatting, and illegal dumping.

CALIFORNIA

ASSOCIATTON
OF REALTORSs)
ln accordance with the terms and conditions of the Purchase And Reply To Request For Repair (C.A.R. Form RRRR), ! Other CONTINGENCY REMOVAL No.
(C.A.R. Form GR, Revised 12121)
7-A865.8F3494EF01 01
1 Agreement, OR ! Request For Repair (C.A.R. Form RR), Response dated 04/29/2022 ("Agreement"),
45534 E sth .sf cA 93535 ("Property"),on property known as between Adrian Godiali
and
("Buyer")
("Seller").

Buyer and Seller are referred to as the "Parties."

1. BUYER REMOVAL OF BUYER CONTINGENGIES: With respect to any contingency and cancellation right that Buyer removes, unless Othenvise Agreed in a separate written agreement between Buyer and Seller, Buyer shall conclusively be deemed to have:
(i) completed all Buyer lnvestigations and review of reports and other applicable information and disclosures; (ii) elected to proceed with the transaction; and (iii) assumed all liability, responsibility and, expense, if any, for Repairs, corrections, or for the inability to obtain financing. Waiver of statutory disclosures is prohibited by law.

2. Buyer removes ONLY the following individually checked Buyer contingencies:

A. fi t-oan (Paragraph 3L(1) and 8A)
B. I Appraisal (Paragraph 3L(2) and 88)
C. lnvestigation of Property (Paragraph 3L(3), 8C, and 12) (1) n Entire Buyer's lnvestigation Contingency (Paragraph 12) OR (2) l__lOnty the part of the lnvestigation related to inspections concerning physical attributes of the Property (Paragraph ))
oR (3)
oR (4)
All Buyer lnvestigations other than the physical attributes (Paragraph 128,(2) and (3)) Entire Buyer's lnvestigation Contingency, EXCEPT
D. Review of Seller Documents:
(1)
oR (2)
Review of All Seller Documents (Paragrap L(4),8D,98(6), 10A, and 11) Review of All Seller Documents, EXCEPT Government Reports (Paragraph 1 0A); Statutory and other Disclosures (Paragraph 11); Other
1 3.

4. 5.

NOTE:
(c.A.R
(c.A.R
to C.A.

Preliminary ("Title") Report (Paragraph 3L(5), 8E, and 13) Common lnterest (HOA or OA) Disclosures (Paragraph 3L(6), 8F and 11K(1)) Review of leased or liened items (Paragraph 3L(7), 8G, and 98(6)) lf this form is attached to a Request for Repairs (C.A.R. Form RR), Seller Response and Buyer Reply to A
51312022 1 1 :08:02 AM PDT Date
Request
Existing
for Repairs
Agreement
mbers refer
Form RRRR), or another form or document such as an addendum (C.A.R. Form ADM) or Amendment to it is only valid if Buyer and Seller agree to the requests made on that form or document. (Paragraph nu icable paragraph numbers may be different for different forms.) Buyer
Buyer
Date 05to3t2022

6. SELLER REMOVAL OF SELLER CONTINGENGIES:

NOTE: This section is solely for the purpose of removing Seller contingencies and should only be signed by Seller if they are removing Seller contingencies.

Seller hereby removes the following Seller contingencies:

Finding of replacement property (C.A.R. Form SPRP);! Closing on replacement property (C.A.R. Form SPRP) Other
Seller
Seller
Date
Date
@ 2021, California Association.of REALTORS@, lnc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS@. NO REPRESENTATION IS MADE AS To THE LEGAL VALIDITY oR AccURAcY oF ANY PRoVISIoN IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the Californid Association of REALTORS@. lt is not intended to identify the user as a REALTOR@. REALTOR@ is a registered c-ollective-membership mar( which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS@ who subscribe to its Code of Ethics Published and Distributed by:

REAL ESTATE BUSINESS SERVICES, LLC.
a subsidiary of the CALIFORNIA ASSOC/ALON OF REALIORS@
525 South Virgil Avenue, Los Angeles, Califomia 90020
L
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CONTINGENCY REMOVAL RPAGElOFl
HomcDash Rcalty,3705 W Pico Blvd Stc 800 Los Angeler CA 90019 Phone: (3t0) 90$,5999 Fax:

Endy Lin Produced with Lone Wolf Transaclions (zipForm Edition) 717 N HaMood St, Suite 2200, Dallas, TX 75201 w.lwolf.com cA 93535
F-91 8641 17-A865.8F3494EF01 01

CALIFORNIA
ASSOC]AT]ON
OF RE,\LTORSS
I euyer ! setler! Landlord I Tenant
! euyer ! Setter ! Landlord ! Tenant

DISCLOSURE REGARDING

REAL ESTATE AGENCY RELATIONSHIP
(As required by the Civil Code)
(C.A.R. Form AD, Revised 12121)
Adrian
513t2022 1 1 :09:09 AM PDT
HomeDash
Real Estate Broker (Firm)
DRE Lic. # 01954276
! (lf cneckeO) This form is being provided in connection with a transaction for a leasehold interest exceeding one year as per Civil Code section 2079.13(i), (k), and (l).

When you enter into a discussion with a real estate agent regarding a real estate transaction, you should from the outset understand what type of agency relationship or representation you wish to have with the agent in the transaction.

SELLER'S AGENT
A Seller's agent under a listing agreement with the Seller acts as the agent for the Seller only. A Seller's agent or a subagent of that agent has the following affirmative obligations:

To the Seller: A Fiduciary duty of utmost care, integrity, honesty and loyalty in dealings with the Seller.

To the Buyer and the Seller:
(a) Diligent exercise of reasonable skill and care in performance of the agent's duties. (b) A duty of honest and fair dealing and good faith.
(c) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties. An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above.

BUYER'S AGENT
A Buyer's agent can, with a Buyer's consent, agree to act as agent for the Buyer only. ln these situations, the agent is not the Seller's agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Seller. An agent acting only for a Buyer has the following affirmative obligations:

To the Buyer: A fiduciary duty of utmost care, integrity, honesty and loyalty in dealings with the Buyer.

AGENT REPRESENTING BOTH SELLER AND BUYER
A real estate agent, either acting directly or through one or more salespersons and broker associates, can legally be the agent of both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer. ln a dual agency situation, the agent has the following affirmative obligations to both the Seller and the Buyer:
(a) A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either the Seller or the Buyer. (b) Other duties to the Seller and the Buyer as stated above in their respective sections. ln representing both Seller and Buyer, a dual agent may not, without the express permission of the respective party, disclose to the other party confidential information, including, but not limited to, facts relating to either the Buyer's or Seller's financial position, motivations, bargaining position, or other personal information that may impact price, including the Seller's willingness to accept a price less than the listing price or the Buyer's willingness to pay a price greater than the price offered.

SELLER AND BUYER RESPONSIBILITIES
Either the purchase agreement or a separate document will contain a confirmation of which agent is representing you and whether that agent is representing you exclusively in the transaction or acting as a dual agent. Please pay attention to that conflrmation to make sure it accurately reflects your understanding of your agent's role.

The above duties of the agent in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect his or her own interests. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent is a person qualified to advise about real estate. lf legal or tax advice is desired, consult a competent professional. lf you are a Buyer, you have the duty to exercise reasonable care to protect yourself, including as to those facts about the property which are known to you or within your diligent attention and observation.

Both Sellers and Buyers should strongly consider obtaining tax advice from a competent professional because the federal and state tax consequences of a transaction can be complex and subject to change.

Throughout your real property transaction you may receive more than one disclosure form, depending upon the number of agents assisting in the transaction. The law requires each agent with whom you have more than a casual relationship to present you with this disclosure form. You should read its contents each time it is presented to you, considering the relationship between you and the real estate agent in your specific transaction. This disclosure form includes the provisions of Sections 2079.13 1o2079.24, inclusive, of the Civil Code set forth on page 2. Read it carefully. l/WE ACKNOWLEDGE RECEIPT OF A COPY OF THIS DISCLOSURE AND THE PORTIONS OF THE GIVIL ON THE SECOND PAGE.

Qddmt 05r03t2022
Date
Date
By
DRE Lic. # 02131714
05t03t2022
Date
St3t2O221 1:1 1:05 A(Fpb?person or Broker-Associate, if any) @ 2021 , Califomia Association of REALTORS@, lnc.

AD REVTSED 12t21 (PAGE 1 OF 2l
HomeDash R€alty,3705 W Pico Blvd Ste 800 Los Angele| CA 90019 Phone: (310) 90S5999 Endy Lira Produced with Lone Wolf Transactions (zipForm Edition) 71 7 N HaMood St, Suite 2200, Dallas, TX 7520 1 Fax:
w.lwolf.com
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DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP PAGE 1 OF Autheotisisn rD: 4EDFD61F-e186-4117-ABqg9t119€Fg[9L -iCTIONS 2079.13 - 2079.24 (2079.16 APPEARS ON THE FRONT) 2079J3. As used in Sections 2079.7 and2079.141o2079.24, inclusive, the following terms have the following meanings:
(a) "Agent" means a person acting under provisions of Title 9 (commencing with Section 2295) in a real property transaction, and includes a person who is licensed as a real estate broker under Chapter 3 (commencing with Section ,l0130) of Part 1 of Division 4 of the Business and Professions Code, and under whose license a listing is executed or an offer to purchase is obtained. The agent in the real property transaction bears responsibility for that agent's salespersons or broker associates who perform as agents of the agent. When a salesperson or broker associate owes a duty to any principal, or to any buyer or seller who is not a principal, in a real property transaction, that duty is equivalent to the duty owed to that party by the broker for whom the salesperson or broker associate functions. (b) "Buye/' means a transferee in a real property transaction, and includes a person who executes an offer to purchase real property from a seller through an agent, or who seeks the services of an agent in more than a casual, transitory, or preliminary manner, with the object of entering into a real property transaction. "Buye/' includes vendee or lessee of real property. (c) "Commercial real property" means all real property in the state, except (1) single-family residential real property, (2) dwelling units made subject to Chapter 2 (commencing with Section '1940) of Title 5, (3) a mobilehome, as defined in Section 798.3, (4) vacant land, or (5) a recreational vehicle, as defined in Section 799.29. (d) "Dual agent" means an agent acting, either directly or through a salesperson or broker associate, as agent for both the seller and the buyer in a real property transaction. (e) "Listing agreement" means a written contract between a seller of real property and an agent, by which the agent has been authorized to sell the real property or to find or obtain a buyer, including rendering other services for which a real estate license is required to the seller pursuant to the terms of the agreement. (f) "Seller's agent" means a person who has obtained a listing of real property to act as an agent for compensation. (g) "Listing price" is the amount expressed in dollars specifled in the listing for which the seller is willing to sell the real property through the seller's agent. (h) "Offering price" is the amount expressed in dollars specified in an offer to purchase for which the buyer is willing to buy the real property. (i) "Offer to purchase" means a wriften contract executed by a buyer acting through a buyer's agent that becomes the contract for the sale of the real property upon acceptance by the seller. fi) "Real property" means any estate specified by subdivision (1)or (2) of Section 761 in property, and includes (1) single-family residential property, (2) multiunit residential property with more than four dwelling units, (3) commercial real property, (4) vacant land, (5) a ground lease coupled with improvements, or (6) a manufactured home as defined in Section 18007 of the Health and Safety Code, or a mobilehome as defined in Section 18008 of the Health and Safety Code, when offered for sale or sold through an agent pursuant to the authority contained in Section 10131 .6 of the Business and Professions Code. (k) "Real property transaction" means a transaction for the sale of real property in which an agent is retained by a buyer, seller, or both a buyer and seller to act in that transaction, and includes a listing or an offer to purchase. (l) "Sell," "sale," or "sold" refers to a transaction for the transfer of real property from the seller to the buyer and includes exchanges of real property between the seller and buyer, transactions for the crealion of a real property sales contract within the meaning of Section 2985, and transactions for the creation of a leasehold exceeding one year's duration. (m) "Selle/' means the transferor in a real property transaction and includes an owner who lists real propefi with an agent, whether or not a transfer results, or who receives an offer to purchase real property of which he or she is the owner from an agent on behalf of another. "Selle/' includes both a vendor and a lessor of real property. (n) "Buyefs agent" means an agent who represenis a buyer in a real property transaction. 2079.14. A seller's agent and buyer's agent shall provide the seller and buyer in a real property transaction with a copy of the disclosure form specified in Section 2079.16, and shall obtain a signed acknowledgment of receipt from that seller and buyer, except as provided in Section 2079.15, as follows: (a) The seller's agent, if any, shall provide the disclosure form to the seller prior to entering into the listing agreement. (b) The buyer's agent shall provide the disclosure form to the buyer as soon as practicable prior to execution of the buyer's offer to purchase. lf the offer to purchase is not prepared by the buyer's agent, the buyer's agent shall present the disclosure form to the buyer not later than the next business day after receiving the offer to purchase from the buyer.
2079.15. ln any circumstance in which the seller or buyer refuses to sign an acknowledgment of receipt pursuant to Section 2079.14, the agent shall set forth, sign, and date a written declaration of the facts of the refusal. 2079.16 Reproduced on Page 1 of this AD form.
2079.17(a) As soon as practicable, the buyeds agent shall disclose to the buyer and seller whether the agent is acting in the real property transaction as the buyer's agent, or as a dual agent representing both the buyer and the seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller, the buyer, and the buyer's agent prior to or coincident with execution of that contract by the buyer and the seller, respectively. (b) As soon as practicable, the seller's agent shall disclose to the seller whether the seller's agent is acting in the real property transaction as the seller's agent, or as a dual agent representing both the buyer and seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller and the seller's agent prior to or coincident with the execution of that contract by the seller.

CONFIRMATION: (c) The confirmation required by subdivisions (a) and (b) shall be in the following form:

Seller's Brokerage Firm DO NOT COMPLETE. SAMPLE ONLY License Number ls the broker of (check one): l__l the seller; or fJ both the buyer and seller. (dual agent) Seller's Agent DO NOT COMPLETE. SA _ License Number
ls (check one): ! the Seller's Agent. (salesperson or broker associate) n both the Buyer's and Sellefs Agent. (dual agent) Buyer's Brokerage Firm DO NOT COMPLETE. SAMPLE ONLY License Number ls the broker of (check one): ! the buyer; or ! botn the buyer and seller. (dual agent) Buyer's License Number
specifically prohibited by this article if the requirements of Section 2079.14 and Section 2079.'17 are complied with. 2079.21 (a) A dual ageni may not, without the express permission of the seller, disclose to the buyer any confidential information obtained from the seller. (b) A dual agent may not, without the express permission of the buyer, disclose to the seller any confidential information obtained from the buyer. (c) "Confidential information" means facts relating to the client's financial position, motivations, bargaining position, or other personal information that may impact price, such as ihe seller is willing to accept a price less than the listing price or the buyer is willing to pay a price greater than the price offered. (d) This section does not alter in any way the duty or responsibility of a dual agent to any principal with respect to confidential information other than price. 2079.22 Nothing in this article precludes a seller's agent from also being a buyer's agent. lf a seller or buyer in a transaction chooses to not be represented by an agent, that does not, of itself, make that agent a dual agent. 2079,23 A contract between the principal and agent may be modified or altered to change the agency relationship at any time before the performance of the act which is the object of the agency with the written consent of the parties to the agency relationship. 2079.24 Nothing in this article shall be construed to either diminish the duty of disclosure owed buyers and sellers by agents and their associate licensees, subagents, and employees or to relieve agents and their associate licensees, subagents, and employees from liability for their conduct in connection with acts governed by this article or for any breach of a fiduciary duty or a duty of disclosure. @ 2021, California Association of REALTORS@, lnc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS@. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made the California Association of REALTORS@. lt is not intended
of the NATIONAL ASSOCIATION OF
to identify the
REALTORS@
user as
available to real estate professionals through an agreement with or purchase from a REALTOR@. REALTOR@ is a registered collective membership mark which may be who subscribe to its Code of Ethics
used only by
A,l=l
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Published and Distributed by:

REAL ESTATE BUSINESS SERVICES, LLC,
a subsidiary of the CALIFORNIA ASSOC,ATON OF REALIORS@
525 South Virgil Avenue, Los Angeles, California 90020
AD REVISED 12t21(PAGE2OF 2l
DtscLosuRE REGARDTNG REAL ESTATE AGENCY RELATTONSHTP (AD PAGE 2OF 2l Produced with Lone Wolf Transactions (zipForm Edition) 717 N HaMood St, Suite 2200, Dallas, TX 7520'1 M.lwolf.com cA 93s35 Authentisisn ISS$lDPlftq1 Rq-fl
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FAIR HOUSING & DISCRIMINATION ADVISORY
(C.A.R. Form FHDA, 10/20)

1. EQUAL ACCESS TO HOUSING FOR ALL: All housing in California is available to all persons. Discrimination as noted below is prohibited by law. Resources are available for those who have experienced unequal treatment under the law.

2. FEDERAL AND STATE LAWS PROHIBIT DISCRIMINATION AGAINST IDENTIFIED PROTECTED CLASSES:

A. FEDERAL FAIR HOUSING ACT ("FHA") Title Vlll of the Civil Rights Act; 42 U.S.C. SS 3601-3619; Prohibits discrimination in sales, rental or financing of residential housing against persons in protected classes; B. CALIFORNIA FAIR EMPLOYMENT AND HOUSING ACT ('FEHA') California Government Code ("GC") SS12900- 12996,12955; 2 California Code of Regulations ('CCR') SS12005-12271; Prohibits discrimination in sales, rental or financing of housing opportunity against persons in protected classes by providers of housing accommodation and financial assistance services as relaled to housing;
C. CALIFORNIA UNRUH CIVIL RIGHTS ACT ("Unruh") California Civil Code ("CC") 551; Prohibits business establishments from discriminating against, and requires full and equal accommodation, advantages, facilities, privileges, and services to persons in protected classes;
D. AMERICANS WITH DISABILITIES ACT ('ADA') 42 U.S.C. SS12181-12189; Title lll of the ADA prohibits discrimination based on disability in public accommodations; and
E. OTHER FAIR HOUSING LAWS: Section 504 of Rehabilitation Act of 1973 29 U.S.C. 5794; Ralph Civil Rights Act CC 551.7.; California Disabled Persons Act; CC SS54-55.32; any local city or county fair housing ordinances, as applicable.

3. POTENTIAL LEGAL REMEDIES FOR UNLAWFUL DISCRIMINATION: Violations of fair housing laws may result in monetary civil fines, injunctive relief, compensatory and/or punitive damages, and attorney fees and costs.

4. PROTECTED CLASSES/CHARACTERISTIGS: Whether specified in Federal or State law or both, discrimination against persons if based on that person's belonging to, association with, or perceived membership to, any of the following classes or categories is

5. THE CALIFORNIA DEPARTMENT OF REAL ESTATE REQUIRES TRAINING AND SUPERVISION TO PREVENT HOUSING DISCRIMINATION BY REAL ESTATE LICENSEES:

A. California Business & Professions Code ("B&PC') 510170.5(aX4) requires 3 hours of training on fair housing for DRE license renewal; Real Estate Regulation 52725(0 requires brokers who oversee salespersons to be familiar with the requirements of federal and state laws relating to the prohibition of discrimination.

B. Violation of DRE regulations or real estate laws against housing discrimination by a real estate licensee may result in the loss or suspension of the licensee's real estate license. B&PC S10177(lX1); 10 CCR 52780

6. REALTOR@ ORGANIZATIONS PROHIBIT DISCRIMINATION: NAR Code of Ethics Article 10 prohibits discrimination in employment practices or in rendering real estate license services against any person because of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity by REALTORS@.

7. WHO IS REQUIRED TO COMPLY WITH FAIR HOUSING LAWS?
Below is a non-exclusive list of providers of housing accommodations or financial assistance services as related to housing who are most likely to be encountered in a housing transaction and who must comply with fair housing laws. o Sellers o Landlords o Sublessors
o Real estate licensees o Real estate brokerage firms o Property managers o Mobilehome parks o Homeowners Associations ("HOAs"); o Banks and Mortgage lenders o lnsurance companies o Government housing services

8. EXAMPLES OF CONDUCT THAT MAY NOT BE MOTIVATED BY DISCRIMINATORY INTENT BUT COULD HAVE A DISCRIMINATORY EFFECT:

A. Prior to acceptance of an offer, asking for or offering buyer personal information or letters from the buyer, especially with photos.

Those types of documents may inadvertently reveal, or be perceived as revealing, protected status information thereby increasing the risk of (i) actual or unconscious bias, and (ii) potential legal claims against sellers and others by prospective buyers whose offers were rejected.

B. Refusing to rent (i) an upper level unit to an eldedy tenant out of concern for the tenant's ability to navigate stairs or (ii) a house with a pool to a person with young children out of concern for the children's safety.

9. EXAMPLES OF UNLAWFUL OR IMPROPER CONDUCT BASED ON A PROTEGTED CLASS OR CHARACTERISTIG:

A. Refusing to negotiate for a sale, rental or financing or otherwise make a housing opportunity unavailable; failing to present offers due to a person's protected status;
B. Refusing or failing to show, rent, sell or finance housing; "channeling" or "steering" a prospective buyer or tenant to or away from a particular area due to that person's protected stiatus or because of the racial, religious or ethnic composition of the neighborhood; C. "Blockbusting" or causing "panic selling" by inducing a listing, sale or rental based on the grounds of loss of value of property, increase in crime, or decline in school quality due to the entry or prospective entry of people in protected categories into the neighborhood;
D. Making any statement or advertisement that indicates any preference, limitation, or discrimination; @ 2020, California Association of REALTORS@, lnc.

FHDA 10/20 (PAGE 1OF 2l
Race Color Ancestry National Origin Religion
Sex Sexual Orientation Gender Gender ldentity Gender Expression Marital Status Familial Status (family with a
child or children under 18)
Source of lncome (e.9.,
Section 8 Voucher)
Disability (Mental &
Physical) Medical Condition
Citizenship Primary Language lmmigration Status MilitaryAr/eteran Status Age Criminal History (non-relevant convictions) Any arbitrary characteristic FAIR HOUSING & DISGRIMINATION ADVISORY HDA PAGE 1 OF
HomeDash Realty, 3705 W Pico Blvd Ste 800 Los Angeles CA 90019 Phone: (310) 905-5999 Fax:

Endy Lira Produced with Lone Wolf Transactions (zipForm Edition) 717 N HaMood St, Suite 2200, Dallas, TX 7520'l w.lwolf.com cA 93535
Authentisign lD: 4EDFD61F-91 8641'17-A865-8F3494EF0101
E. lnquiring about protected characteristics (such as asking tenant applicants if they are married, or prospective purchasers if they have children or are planning to start a family);
F. Using criminal history information before otherwise affirming eligibility, and without a legally sufficient justification; G, Failing to assess financial standards based on the portion of the income responsible by a tenant who receives government subsidies (such as basing an otheruvise neutral rent to income ratio on the whole rent rather than just the part of rent that is the tenant's responsibility);
H. Denying a home loan or homeowner's insurance;
l. Offering inferior terms, conditions, privileges, facilities or services; J. Using different qualification criteria or procedures for sale or rental of housing such as income standards, application requirements, application fees, credit analyses, sale or rental approval procedures or other requirements; K. Harassing a person;
L. Taking an adverse action based on protected characteristics; M. Refusing to permit a reasonable modification to the premises, as requested by a person with a disability (such as refusing to allow a wheel chair bound tenant to install, at their expense, a ramp over front or rear steps, or refusing to allow a physically disabled tenant from installing, at their own expense, grab bars in a shower or bathtub); N. Refusing to make reasonable accommodation in policies, rules, practices, or services for a person with a disability (such as the following, if an actual or prospective tenant with a disability has a service animal or support animal):
(i) Failing to allow that person to keep the service animal or emotional support animal in rental property, (ii) Charging that person higher rent or increased security deposit, or (iii) Failing to show rental or sale property to that person who is accompanied by the service animal or support animal, and; O. Retaliating for asserting rights under fair housing laws.

10. EXAMPLES OF POSITIVE PRACTICES:

A. Real estate licensees working with buyers or tenants should apply the same objective property selection criteria, such as location/neighborhood, property features, and price range and other considerations, to all prospects.

B. Real estate licensees should provide complete and objective information to all clients based on the client's selection criteria.

C. Real estate licensees should provide the same professional courtesy in responding to inquiries, sharing of information and offers of assistance to all clients and prospects.

D. Housing providers should not make any statement or advertisement that directly or indirectly implies preference, limitation, or discrimination regarding any protected characteristic (such as "no children" or "English-speakers only").

E. Housing providers should use a selection process relying on objective information about a prospective buyer's offer or tenant's application and not seek any information that may disclose any protected characteristics (such as using a summary document, e.g. C.A.R. Form SUM-MO, to compare multiple offers on objective terms).

11. FAIR HOUSING RESOURCES: lf you have questions about your obligations or rights under the Fair Housing laws, or you think you have been discriminated against, you may want to contact one or more of the sources listed below to discuss what you can do about it, and whether the resource is able to assist you.

A. Federal: https://www.hud.gov/program_offices/fair_housing_equal_opp B. State: https://www.dfeh.ca.gov/housing/
C. Local: local Fair Housing Council office (non-profit, free service) D. DRE: https://www.dre.ca.gov/Consumers/FileGomplaint.html E. Local Association of REALTORS@. List available at: https://www.car.org/en/contactus/rosters/localassociationroster.

F. Any qualified California fair housing attorney, or if applicable, landlord-tenant attorney.

12. LIMITED EXCEPTIONS TO FAIR HOUSING REQUIREMENTS: No person should rely on any exception below without first seeking legal advice about whether the exception applies to their situation. Real estate licensees are not qualified to provide advice on the application of these exceptions.

A. Legally compliant senior housing is exempt from FHA, FEHA and Unruh as related to age or familial status only; B. An owner of a single-family residence who resides at the property with one lodger may be exempt from FEHA for rental purposes, PROVIDED no real estate licensee is involved in the rental; C. An owner of a single-family residence may be exempt from FHA for sale or rental purposes, PROVIDED (i) no real estate licensee is involved in the sale or rental and (ii) no discriminatory advertising is used, and (iii) the owner owns no more than three si ngle-family residences. Other restrictions apply; D. An owner of residential property with one to four units who resides at the property, may be exempt from FHA for rental purposes, PROVIDED no real estate licensee is involved in the rental; and E. Both FHA and FEHA do not apply to roommate situations. See, Fair Housing Councilv Roommate.com tLC, 666 F.3d 1216 (2019).

F. Since both the 14th Amendment of the U.S. Constitution and the Civil Rights Act of 1866 prohibit discrimination based on race; the FHA and FEHA exemptions do not extend to discrimination based on race.

Aolblltbrdlord have read, understand and acknowledge receipt of a copy of this Fair Housing & Discrimination AdvisoryBuyerffenant Buyer/Tenant
Buyerffenant 51312022 1 1 :08:06 AM PDT
Adrian
05t03t2022
uate
Date
any portion thereot by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS@. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the Califomia Association of REALTORS@. lt is not intended to identify the user as a REALTOR@. REALTOR@ is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS@ who subscribe to its Code of Ethics Seller/Landlord Date
Seller/Landlord Date
Published and Dishibuted by:

REAL ESTATE BUSINESS SERVICES, LLC.
a subsidiary of the CALIFORNIA ASSOG/AZON OF REALrORS@
525 South Virgil Avenue, Los Angeles, California 90020
FHDA 10/20 (PAGE 2OF 2)
FAIR HOUSTNG & DTSCRTMTNAT|ON ADV|SORY (FHDA PAGE 2OF 2l Produced with Lone Wolf Transactions (zipForm Edition) 717 N HaMood St, Suite 2200, Dallas, TX 75201 M.lwolf.com cA 93535 ^''^""'A-K:l':--'"* PosslB
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LE REPRESENTATION OF MORE THAN ONE BUYER
OR SELLER . DISCLOSURE AND CONSENT
(C.A.R. Form PRBS, Revised 12121)
A real estate broker (Broker), whether a corporation, partnership or sole proprietorship, may represent more than one buyer or seller. This multiple representation can occur through an individual licensed as a broker or salesperson or through different individual broker's or salespersons (associate licensees) acting under the Broker's license. The associate licensees may be working out of the same or different office locations.

Multiple Buyers: Broker (individually or through its associate licensees) may be working with many prospective buyers at the same time. These prospective buyers may have an interest in, and make offers on, the same properties. Some of these properties may be listed with Broker and some may not. Broker will not limit or restrict any particular buyer from making an offer on any particular property whether or not Broker represents other buyers interested in the same property.

Multiple Sellers: Broker (individually or through its associate licensees) may have listings on many properties at the same time. As a result, Broker will attempt to find buyers for each of those listed properties. Some listed properties may appeal to the same prospective buyers. Some properties may attract more prospective buyers than others. Some of these prospective buyers may be represented by Broker and some may not. Broker will market all listed properties to all prospective buyers whether or not Broker has another or other listed properties that may appeal to the same prospective buyers.

Dual Agency: lf Seller is represented by Broker, Seller acknowledges that broker may represent prospective buyers of Seller's property and consents to Broker acting as a dual agent for both seller and buyer in that transaction. lf Buyer is represented by Broker, buyer acknowledges that Broker may represent sellers of property that Buyer is interested in acquiring and consents to Broker acting as a dual agent for both buyer and seller with regard to that property. ln the event of dual agency, seller and buyer agree that: a dual agent may not, without the express permission of the respective party, disclose to the other party confidential information, including, but not limited to, facts relating to either the buyer's or seller's financial position, motivations, bargaining position, or other personal information that may impact price, including the seller's willingness to accept a price less than the listing price or the buyer's willingness to pay a price greater than the price offered; and except as set forth above, a dual agent is obligated to disclose known facts materially affecting the value or desirability of the Property to both parties.

Offers not necessarily confidential: Buyer is advised that seller or listing agent may disclose the existence, terms, or conditions of buyer's offer unless all parties and their agent have signed a written confidentiality agreement. Whether any such information is actually disclosed depends on many factors, such as current market conditions, the prevailing practice in the real estate community, the listing agent's marketing strategy and the instructions of the seller.

Buyer and seller understand that Broker may represent more than one buyer or more than one seller and even both buyer and seller on the same iransaction and consents to such relationships.

Seller and/or Buyer acknowledges reading and understanding this Possible Representation of More Than One Buyer or Seller - Disclosure and Consent and agrees to the agency possibilities disclosed.

Seller
Seller
Buyer
Buyer
Authcnlisra'
51312022'l 1 :08:10 AM PDT
Adrian
Date
Date
Date
Date
Date
Date
05t0312022
By
Fim HomeDash Realty
lq$qntODr
Seller's Brokerage Firm Coldwell Banker-A Hartwig Co
DRE Lic # 02131714
DRE Lic # 01954276
DRE Lic # 00450461
05t0312022
By
Date
DateDRE Lic # 00758955
Dennis Greer
or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS@. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TMNSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS@. lt is not intended to identify the user as a REALTOR@. REALTOR@ is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS@ who subscribe to its Code of Ethics.

Published and Distributed by:

REAL ESTATE BUSINESS SERVICES, LLC.
a subsidiary of the CALIFORNIA ASSOC,AZOIV OF REALTORS@ 525 South Virgil Avenue, Los Angeles, California 90020
REVTSED 12t21(PAGE 1 OF 1)
I
I
c
PRBS
POSSIBLE REPRESENTATION OF MORE THAN ONE BUYER OR SELLER PAGE 1 OF 1 HomeDash Rcalty,3705 W Pico Blvd Ste 800 Los Angclcs CA 90019 Phone: (310) 905-5999 f,ndyLira ProducedwithLoneWolf Transactions(zipFormEdition) 717NHaruoodSt,Suite2200,Dallas,TX 75201 Fax:
ww.lwolf.com
cA 93535
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WIRE FRAUD AND ELECTRONIC FUNDS

TRANSFER ADVISORY
(C.A.R. Form WFA, Revised 12121)
Property Address: 45534 E ith St,lg4cagter, CA 93535 ("Property") WIRE FRAUD AND ELEGTRONIG FUNDS TRANSFERS ADVISORY:

The ability to communicate and conduct business electronically is a convenience and reality in nearly all parts of our lives.

At the same time, it has provided hackers and scammers new opportunities for their criminal activity. Many businesses have been victimized and the real estate business is no exception.

While wiring or electronically transferring funds is a welcome convenience, we all need to exercise extreme caution.

Emails attempting to induce fraudulent wire transfers have been received and have appeared to be legitimate. Reports indicate that some hackers have been able to intercept emailed transfer instructions, obtain account information and, by altering some of the data, redirect the funds to a different account. lt also appears that some hackers were able to provide false phone numbers for verifying the wiring or funds transfer instructions. ln those cases, the victim called the number provided to confirm the instructions, and then unwittingly authorized a transfer to somewhere or someone other than the intended recipient.

ACCORDINGLY, YOU ARE ADVISED:

1. Obtain phone numbers and account numbers only from Escrow Officers, Property Managers, or Landlords at the beginning of the transaction.

2. DO NOT EVER WIRE OR ELECTRONICALLY TRANSFER FUNDS PRIOR TO CALLING TO CONFIRM THE TRANSFER INSTRUCTIONS. ONLY USE A PHONE NUMBER YOU WERE PROVIDED PREVIOUSLY. Do not use any different phone number or account number included in any emailed transfer instructions.

3. Orally confirm the transfer instruction is legitimate and confirm the bank routing number, account numbers and other codes before taking steps to transfer the funds. 4, Avoid sending personal information in emails or texts. Provide such information in person or over the telephone directly to the Escrow Officer, Property Manager, or Landlord.

5. Take steps to secure the system you are using with your email account. These steps include creating strong passwords, using secure WiFi, and not using free services. lf you believe you have received questionable or suspicious wire or funds transfer instructions, immediately notify your bank, and the other party, and the Escrow Office, Landlord, or Property Manager. The sources below, as well as others, can also provide information:

Federal Bureau of lnvestigation: https://www.fbi.gov/; the FBI's lC3 at www.ic3.gov; or 310-477-6565 National White Collar Crime Center: http://www.nw3c.org/ On Guard Online: https://www.onguardonline.gov/
NOTE: There are existing alternatives to electronic and wired fund transfers such as cashier's checks.

By signing below, the undersigned acknowledge that each has read, understands and has received a copy of this
Buyer/Tenant
Buyer/Tenant
nd Electronic Funds Transfer Advisory
Date
05t03t2022
Adrian
5t3t2022 1 1 :08:12 AM PDT Date
Seller/Landlord Date
Seller/Landlord Date
@2021, California Association of REALTORS@, lnc- United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS@. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDIry OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS@. lt is not intended to identify the user as a REALTOR@. REALTOR@ is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS@ who subscribe to its Code of Ethics.

Published and Distributed by:

REAL ESTATE BUSINESS SERVICES, LLC,
a subsidiary of the CALIFORNIA ASSOC,AIION OF REAIIORS@ 525 South Virgil Avenue, Los Angeles, California 90020
wFA REVTSED 12t21(PAGE 1 OF 1)
L
L
c
WIRE FRAUD AND ELECTRONIC FUNDS TRANSFER ADVISORY 1
HomcDash Rcalty,3705 W Pico Blvd Stc 800 Los Angelcs CA 90019 Phone:

Endy Lira Produced with Lone Wolf Transactions (zipForm Edition) 717 N HaMood St, Suite 2200, (310) 905-5999 Fax:

Dallas, TX 75201 w.lwolf.com
cA 93535
Authentisign
3 7-A865-8F3494EF0101

CALIFORNIA

ASSOCIATION

OF REALTORSE
. : r :: : . r . . ,
il1..,!. !

CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS
(c.A.R. FORM RPA, 12121)
Date Prepared: April29,2022

1. OFFER:

A. THIS IS AN OFFER FROM Adrian Godiali ("Buyer")
B. THE PROPERfi to be acquired is 45534 E 5rh Sr situated tn Lancaster (City), Los Anseles (County), California, 93535 (Zip Code), Assessor's Parcel No(s). 3176012006 ("Property").
(Postal/Mailing address may be different from city jurisdiction. Buyer is advised to investigate.) C. THE TERMS OF THE PURCHASE ARE SPECIFIED BELOWAND ON THE FOLLOWING PAGES.

D. Buyer and Seller are referred to herein as the "Parties." Brokers and Agents are not Parties to this Agreement.

2. AGENCY:

A. DISCLOSURE: The Parties each acknowledge receipt of a "Disclosure Regarding Real Estate Agency Relationships" (C.A.R.

Form AD) if represented by a real estate licensee. Buyer's Agent is not legally required to give to Seller's Agent the AD form Signed by Buyer. Seller's Agent is not legally obligated to give to Buyer's Agent the AD form Signed by Seller.

B. CONFIRMATION: The following agency relationships are hereby confirmed for this transaction.

Seller's Brokerage Firm Coldwell Banker-A Hartwis Co License Number 00450461 ls the broker of (check one): I the Seller; or ! Ootn the Buyer and Seller (Ouat ngent).

Seller's Agent Dennis Greer License Number 00758955
ls(checkone):[theSeller'sAgent.(Salespersonorbrokerassociate);or[notntneeuyers and Seller's Agent (Dual Agent) Buyer's Brokerage Firm HomeDash Realtv License Number 02131714 ls the broker of (check one): l! the Buyer; or l l both the Buyer and Seller (Dual Agent).

Buyer's Agent Endv Lira Kusuma License Number 01954276
ls (check one): l! the Buyer's Agent. (Salesperson or broker associate); or l__.1 botn the Buyer's and Seller's Agent (Dual Agent).

C. ! wore than one Brokerage represents n Setter, ! euyer. See, Additional Broker Acknowledgement (G.A.R. Form ABA).

D. POTENTIALLY COMPETING BUYERS AND SELLERS: The Parties each acknowledge receipt of a [ "Possible Representation of More than One Buyer or

TERMS OF PURCHASE AND ALLOCATION
Seller - Disclosure and Consent' (C.A.R. Form PRBS).

OF COSTS: The items in this the Agreement.
de further anation. This form is 16 The
A 5, 58 (cash) Purchase Price $ 390.000.00 !Rttcasn
B Close of Escrow (COE) Days afterEJo
OR-onI )
c 32A- Expiration of Offer 3 calendar days after all Buyer at 5PM or _ L_l AM/ LJ PM
or
D(1) 5A(1) lnitial Deposit Amount $ 11,700.00 (_3.0_Yo of purchase price) (% number above is for calculation purposes
and is not a contractual term)
within 3 (or_) business days
after Acceptance by wire transfer
oRl I
D(2) 5A(2) ! lncreased Deposit
(Money placed into escrow after
the initial deposit. Use form DID at
time increased deposit is made.)
( Yo ofpurchase price)
(% number above is for calculation purposes
and is not a contractual term)
$ of all contingencies
OR
OR
(date)
E(1) 5C(1)
lf FHA or VA checked, Deliver list of
lender required repairs
Loan Amount(s):

Points
First
lnterest Rate
( 80.0 % ofpurchaseprice)
Fixed rate or l_l lnitial adjustable rate not to
exceed %
Buyer to pay zero points or up to _% of the
loan amount
17 (or _) Days after Acceptance
$ 312,000.00 Conventional or, if checked,
!rHn!vn
{QAR Forms FVAC, HID attached)
! seller Financing
l l other:

E(21 sc(2) Additional Financed Amount
lnterest Rate
Points
$ _ (_Yo of purchase price)
Fixed rate orI lnitial adjustable rate not to
exceed _%
Buyer to pay zero points or up to _% of the
loan amount
Conventional or, if checked,
Seller Financing
Other:

E(3) 7A Occupancy Type Primary, or if checked, lnvestmentSecondary F 5D Balance of Down Payment $ 66,300.00
PURCHASE PRICE TOTAL *j,',nntyl.nn
eq
@ 2021, California Association of REALTORS@, lnc.

RPA12|21(PAGE 1 OF 16) Buyefs tnitiats Seller's lnitials PAGE 1 OF 1CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS HomeDash Realty,3705 W Pico Blvd Ste 800 Los Angeles CA 90019 cA 93535 717 N Haruood
Fax:Phon€: (310) 905-5999
Suite Dallas, TX 75201Lira Produced with Lone Wolf Transactions Date:

G(l) 5E Seller Credit, if any, to Buyer ! $
-
(-Y" of purchase price)
(% number above is for calculation purposes
and is not a contractual term)
Seller credit to be applied to closing
costs OR
!other:

G(2) ADDITIONAL FINANCE TERMS:

H(r) 5B Verification of All Cash (sufficient
funds)
Attached to the offer or! 3 (or_) Days
after Acceptance
H(2) 6A Verification of Down Payment and
Glosing Costs
Attached to the offer or! 3 (or_) Days
after Acceptance
H(3)
E
J 16
6B
I
Verification of Loan Application
Final Verification of Condition
Attached to the offer or! 3 (or_) Days
after Acceptance
5 (or ) Days prior to COE
Prequalifi cation ! Preapproval
Fully underwritten preapproval
I No loan contingencyL(1)
K 23
8A
Assignment Request
Loan(s)
17 (or _) Days after Acceptance
'17 (or _l Days after Acceptance
L(2) 8B Appraisal: Appraisal contingency
based upon appraised value at a
of purchase price or
$
17 (or ) Days after Acceptance I No appraisal contingency Removal of appraisal contingency
does not eliminate appraisal
cancellation rights in FVAC.

Investigation of Property 17 (or 5 ) Days afterAcceptanceL(3) 8C,12 lnformational Access to Property 17 (or _) Days after Acceptance Buyer's right to access the Property for informational purposes is NOT a contingency, does NOT create cancellation rights, and applies even if contingencies are removed.

L(4) 8D, 14A Review of Seller Documents 17(or 5 )DaysafterAcceptance, or5Days after receipt, whichever is later
17(or 5 )DaysafterAcceptance,or5Days
after receipt, whichever is later
L(5) 8E, 13A Preliminary ("Title") Report
L(6) 8F,11K Common lnterest Disclosures
required by Civil Code $ 4525 or this
Aqreement
17 (or 5 ) Days afterAcceptance, or 5 Days
after receipt, whichever is later
L(7) 8G, eB(6) Review of leased or liened items
(Such as for solar panels or propane
tanks or PACE or HERO liens)
17(or 5 ) DaysafterAcceptance, or5 Days
after receipt, whichever is later

REMOVAL OR WAIVER OF
CONTINGENCY:

Any contingency in L(1)-L(7) may be
removed or waived by checking the
applicable box above or attaching a
Contingency Removal (C.A.R. Form
CR) and checking the applicable
box therein, Removal or Waiver at
time of offer is against Agent advice.

See paragraph 8H.

E cR attached
tn
Upon notice of
AM/
oR!6 PM or
PM on date specified, as
or attached TOPA.

M(1)
L(8) 8J Sale of Buyer's Property
Sale of Buyer's property is not a
g.ontingency, UNLESS checked here:
i iC.A.R. Form COP attached
Time of Possession
M(2) 7C Seller Occupied or Vacant units COE date or. if checked below _ days after COE (29 or fewer days)
_ days after COE (30 or more days)
C.A.R. Form SIP attached if 29 or
fewer days. C.A.R. Form RLAS
attached if 30 or more days.

N(1)
M(3)
144
Tenant Occupied units
Seller Delivery of Documents
See Tenant Occupied Property Addendum
(C.A.R. form TOPA)
7 (or ) Days afterAcceptance
N(2) 19B Sign and return Escrow Holder
Provisions and lnstructions
5 (or ) Days after receipt
N(3) 11K(2) Time to pay fees for ordering HOA
Documents
3 (or ) Days afterAcceptance
N(4) 10B(1) lnstall smoke alarm(s), CO detector(s),
water heater bracing
7 (or ) Days afterAcceptance
TOPA orlf tenant occupied
I lOtner, aftached
N(5) 28 Evidence of representative authority 3 Days after Acceptance 't.I r,l,l,i I.,J t:').1 1.1" 11 l,jit I ili.. r,l ir.r"iill.t.('j i r:li t1l I.ri: ii;,!,ir,,ii,ii,1ri. :,"ri ;i il,,li,i,r::il :l Jrrr ri ir)j.ii; ii.'i.ri l"t rii.1. i ii,il . :r:,,.ir.r i,',1 iil.,, ttri.,t li,:l'.1 irl(:.il : :,:t;1.rit. lli,j i:i '.1r 1,',( ,1'i.1 ) llr' I i,t I r,! ! 1t)l:i ,tii,t.i;i,tr 1, i i:111!1t.i '."i,lr1ilr.r::i iI i'l eq
RPA12t21(PAGE 2 OF 16) Buyer's lnitials Seller's lnitials GALTFORN|A RESIDENTTAL PURCHASE AGREEMENT AND JOTNT ESCROW TNSTRUCTIONS (RPA PAGE 2 OF 16) Produced with Lone Wolf Transactions (zipForm Edition) 717 N HaMood St, Suite 2200, Dallas, TX 75201 M.lwolfcom CA 93535 93535 Date 2022
RPA12|21(PAGE 3 OF 16) Buyer's Initials Seller's lnitials GALIFORNIA RESIDENTIAL PURCHASE AGREEMENT AND JOTNT ESCROW TNSTRUCTTONS (RpA PAGE 3 OF 16) ProducedwithLoneWolfTransactions(zipFormEdition)717NHaMoodSt,Suite2200,Dallas,TX 75201 w.lwdf.com CA93535 eq
P(1) 9 Items lncluded - All items specified in Paragraph gB are included and the following, if checked:
combo(s);
Refrigerato(s);
Wine Refrigerator(s);
Washer(s);
Dryer(s);
Dishwashe(s);
Microwave(s);
Video doorbell(s);
Security camera equipment;
Security system(s)/alarm(s), other than
separate video doorbell and camera
equipment;
Smart home control devices;
Wall mounted brackets for video or audio
equipment;
n
n
Additional ltems included
I Stove(s), oven(s), stove/oven
n!
Above-ground pool(s) / ! spa(s);
Bathroom mirrors, unless
excluded below;
! Electric car charging systems
and stations;
! Potteo trees/shrubs;
P(2) 9
!
Excluded ltems
a(1) Natural Hazard Zone Disclosure
Report, including tax information
Provided by: -Sallar'c l\hniaa
Environmental
Other
a(2) Report ! Buyer I setter n aoth
a(3)
10A, '11A
Report ! euyer I setter f ]aotn
a(4) 108(1) Smoke alarms, CO detectors, water
heater bracinq
! Buyer I setter ! aotn
a(5) 10A
108(2)
Government Required Point of Sale
inspections, reports ! Buyer fi setter ! aotn
o(6) 108(2XA) Government Required Point of Sale
corrective/remedial actions ! euyer I setter ! aotn
aF) 198 Escrow Fees ! euyer ! setter ! aotn
ffi each to pay their own t"".-
Escrow Holder:

Sellerb Chorce
o(8) 13 Owner's title insurance policy ! Buyer I setter ! aotn Title Company (lf different from Escrow Holder):

Seller's Choice
a(e) Buyer's Lender title insurance policy Buyer Unless Otherwise Agreed, Buyer shall purchase any title insurance
policy insuring Buyer's lender.
a(10) County transfer tax, fees f]Buyer Isetter !aotn
a(11) City transfer tax, fees ! auyer E Setter n goth
a(12) 11K(2) HOA fee for preparing disclosures Seller
o(13) HOA certification fee Buyer
o(14) HOA transfer fees ! Buyer ! setter ! eotn Unless Othenivise Agreed, Seller shall pay for separate HOA move-
out fee and Buyer shall pay for
separate move-in fee. Applies if
separately billed or itemized with
cost in transfer fee.
o(15) Private transfer fees Seller, or if checked, ! euyer ! eotn o(16) s500 Trans Coordinator fees or costs I Buyer ! Setter ! aotn HomeDash Realtv o(17) fees or costs ! euyer ! setter ! aotn
a(18)
I
R
10c Home warranty plan:
lssued by: First American HW CRES Uoorade -
Buyer
Buyer plan
Cost not to exceed $700.00
Sandi Franco 626-348-3046
iil.lr,r,t :; 1 1,1,1,i11.ir '.iji;liltr"trr:lr r,r,,,r .1 I (,1.i I i (,.1i. ,'j J r.. l,/j 1 l:
,iitt tt i.li.li rf,t:r ' :..ilr': ; r:,l,,itlrjl.t.,
,;.r;r,. I ii\'J .r'ifr',i;r .11;,r 1,,i,ir,t;:tl '., i ' , .'

1.rjji,r l,rr1 il!', l,'i,ii,l-:.' rilii lr.qt.( )/^,i.)la l Irl l.':tirrI)lri.{r1:r
AuthenlisiuUBi ff DABUf4 99'49 53g6E85ttl45[,0 EL t rc a s t e r, C A I 3 5 3 5 Date: April 29,2022

4. PROPERTY ADDENDA AND ADVISORIES: (check all that apply) A. PROPERTY TYPE ADDENDA: This Agreement is subject to the terms contained in the Addenda checked below; Probate Agreement Purchase Addendum (C.A.R. Form PA-PA) Manufactured Home Purchase Addendum (C.A.R. Form MH-PA) Tenant Occupied Property Addendum (C.A.R. Form TOPA) (Should be checked whether current tenants will remain or not.) Tenancy in Common Purchase Addendum (C.A.R. Form TIC-PA) Stock Cooperative Purchase Addendum (C.A.R. Form COOP-PA) Other
B. OTHER ADDENDA: This Agreement is subject to the terms contained in the Addenda checked below:

Addendum # (C.A.R. Form ADM) Short Sale Addendum (C.A.R. Form SSA) Court Confirmation Addendum (C.A.R. Form CCA)Back Up Offer Addendum (C.A.R. Form BUO) Septic, Wdl, Property Monument and Propane Addendum .A.R. Form SWPI) Buyer lntent to Exchange Addendum (C.A.R. Form B)(A) Seller lntent to Exchange Addendum (C.A.R. Form SXA) Other Other
C. BUYER AND SELLER ADVISORIES: (Note: All Advisories below are provided for reference purposes only and are not intended to be incorporated into this Agreement.)
Buyer's lnvestigation Advisory (C.A.R. Form BIA)
Wire Fraud Advisory (C.A.R. Form WFA)
Wildfire Disaster Advisory (C.A.R. Form WFDA)
Trust Advisory (C.A.R. Form TA)
REO Advisory (C.A.R. Form REO)
Other
Fair Housing and Discrimination Advisory (C.A.R. Form FHDA) Cal. Consumer Privacy Act Advisory (C.A.R. Form CCPA)
E
E
(Parties may also receive a privacy disclosure from their own Agent.) Statewide Buyer and Seller Advisory (C.A.R. Form SBSA)
Short Sale lnformation and Advisory (C.A.R. Form SSIA)
Probate Advisory (C.A.R. Form PA)
Other

5. ADDITIONAL TERMS AFFECTING PURCHASE PRICE: Buyer represents that funds will be good when deposited with Escrow Holder.

A. DEPOSIT:
(1) lNlTlAL DEPOSIT: Buyer shall deliver deposit directly to Escrow Holder. lf a method other than wire transfer is specified in paragraph 3D(1) and such method is unacceptable to Escrow Holder, then upon notice from Escrow Holder, delivery shall be by wire transfer.
(2) INCREASED DEPOSIT: lncreased deposit specified in paragraph 3D(2) is to be delivered to Escrow Holder in the same manner as the lnitial Deposit. lf the Parties agree to liquidated damages in this Agreement, they also agree to incorporate the increased deposit into the liquidated damages amount by signing a new liquidated damages clause (C.A.R. Form DID) at the time the increased deposit is delivered to Escrow Holder. (3) RETENTION OF DEPOSIT: Paragraph 29, if initialed by all Parties or otherwise incorporated into this Agreement, specifies a remedy for Buyer's default. Buyer and Seller are advised to consult with a qualified California real estate attorney before adding any other clause specifying a remedy (such as release or forfeiture of deposit or making a deposit non-refundable) for failure of Buyer to complete the purchase. Any such clause shall be deemed invalid unless the clause independently satisfies the statutory liquidated damages requirements set forth in the Civil Gode.

B. ALL CASH OFFER: lf an all cash offer is specified in paragraph 3A, no loan is needed to purchase the Property. This Agreement is NOT contingent on Buyer obtaining a loan. Buyer shall, within the time specified in paragraph 3H(1), Deliver written verification of funds sufficient for the purchase price and closing costs. c. LoAN(S):
(1) FIRST LOAN: This loan will provide for conventional financing UNLESS FHA, VA, Seller Financing (C.A.R. Form SFA), or Other is checked in paragraph 3E(1).
(2) ADDITIONAL FINANCED AMOUNT: lf an additional financed amount is specified in paragraph 3E(2), that amount will provide for conventional financing UNLESS Seller Financing (C.A.R. Form SFA), or Other is checked in paragraph 3E(2). (3) BUYER'S LOAN STATUS: Buyer authorizes Seller and Seller's Authorized Agent to contact Buyer's lender(s) to determine the status of any Buyer's loan specified in paragraph 3E, or any alternate loan Buyer pursues, whether or not a contingency of this Agreement. lf the contact information for Buyer's lende(s) is different from that provided under the terms of paragraph 68, Buyer shall Deliver the updated contact information within 1 Day of Seller's request. (4) FHA/VA: lf FHA or VA is checked in paragraph 3E(1), a FHAA/A amendatory clause (C.A.R. Form FVAC) shall be incorporated and Signed by all Parties. Buyer shall, within the time specified in paragraph 3E(1), Deliver to Seller written notice (C.A.R. Form RR or AEA) (i) of any lender requirements that Buyer requests Seller to pay for or otherwise correct or (ii) that there are no lender requirements. Notwithstanding Seller's agreement that Buyer may obtain FHA or VA financing, Seller has no obligation to pay or satisfy any or all lender requirements unless agreed in writing.

D. BALANCE OF PURCHASE PRICE (DOWN PAYMENT, paragraph 3F) (including all-cash funds) to be deposited with Escrow Holder pursuant to Escrow Holder instructions.

E. LIMITS ON CREDITS TO BUYER: Any credit to Buyer as specified in paragraph 3G(1) or Otherwise Agreed, from any source, for closing or other costs that is agreed to by the Parties ("Contractual Credit") shall be disclosed to Buyer's lender, if any, and made at Close Of Escrow. lf the total credit allowed by Buyer's lender ("Lender Allowable Credit") is less than the Contractual Credit, then (i) the Contractual Credit from Seller shall be reduced to the Lender Allowable Credit, and (ii) in the absence of a separate written agreement between the Parties, there shall be no automatic adjustment to the purchase price to make up for the difference between the Contractual Credit and the Lender Allowable Credit.

6. ADDITIONAL FINANCING TERMS:

RPA 1
GALIFORNIA RESIDENTIAL PURCHASE AGREEMENT AND JOTNT ESCROW INSTRUCTIONS (RPA PAGE 4 OF 16) ProducedwithLoneWolf Transactions(zipFormEdition) 717NHaMoodSt,Suite2200,Dallas,TX 75201 M.lwolf-com cA93535 Authenli'iQJuBiffDA0tlldJ€94U3$868851/l$[0l0Jrsaster, CA 93535 Date: April29, 2022 C. BUYER STATED FINANCING: Seller is relying on Buyer's representation of the type of financing specified (including, but not limited to, as applicable, all cash, amount of down payment, or contingent or non-contingent loan). Seller has agreed to a specific closing date, purchase price, and to sell to Buyer in reliance on Buyer's specified financing. Buyer shall pursue the financing specified in this Agreement, even if Buyer also elects to pursue an alternative form of financing. Seller has no obligation to cooperate with Buyer's efforts to obtain any financing other than that specified in this Agreement but shall not interfere with closing at the purchase price on the COE date (paragraph 38) even if based upon alternate financing. Buyer's inability to obtain alternate financing does not excuse Buyer from the obligation to purchase the Property and close escrow as specified in this Agreement.

7. CLOSING AND POSSESSION:

A. OCCUPANCY: Buyer intends to occupy the Property as indicated in paragraph 3E(3). Occupancy may impact available financing.

B. CONDITION OF PROPERW ON CLOSING:
(1) Unless Otherwise Agreed: (i) the Property shall be delivered "As-ls" in its PRESENT physical condition as of the date of Acceptance; (ii) the Property, including pool, spa, landscaping and grounds, is to be maintained in substantially the same condition as on the date of Acceptance; and (iii) all debris and personal property not included in the sale shall be removed by Close Of Escrow or at the time possession is delivered to Buyer, if not on the same date. lf items are not removed when possession is delivered to Buyer, all items shall be deemed abandoned. Buyer, after first Delivering to Seller written notice to remove the items within 3 Days, may pay to have such items removed or disposed of and may bring legal action, as per this Agreement, to receive reasonable costs from Seller. (2) Buyer is strongly advised to conduct investigations of the entire Property in order to determine its present condition. Seller and Agents may not be aware of all defects affecting the Property or other factors that Buyer considers important. Property improvements may not be built according to code, in compliance with current Law, or have had all required permits issued and/or finalized.

C. SELLER REMAINING lN POSSESSION AFTER CLOSE OF ESCROW: lf Seller has the right to remain in possession after Close Of Escrow pursuant to paragraph 3M(2) or as Otherwise Agreed, (i) the Parties are advised to consult with their insurance and legal advisors for information about liability and damage or injury to persons and personal and real property; (ii) Buyer is advised to consult with Buyer's lender about the impact of Seller's occupancy on Buyer's loan; and (iii) consult with a qualified California real estate attorney where the Property is located to determine the ongoing rights and responsibilities of both Buyer and Seller with regard to each other, including possible tenant rights, and what type of written agreement to use to document the relationship between the Parties.

D. At Close Of Escrow: (i) Seller assigns to Buyer any assignable warranty rights for items included in the sale; and (ii) Seller shall Deliver to Buyer available Copies of any such wananties. Agents cannot and will not determine the assignability of any warranties.

E. Seller shall, on Close Of Escrow unless Otherwise Agreed and even if Seller remains in possession, provide keys, passwords, codes and/or means to operate all locks, mailboxes, security systems, alarms, home automation systems, intranet and lnternet-connected devices included in the purchase price, garage door openers, and all items included in either paragraph 3P or paragraph 9. lf the Property is a condominium or located in a common interest development, Seller shall be responsible for securing or providing any such items for Association amenities, facilities, and access. Buyer may be required to pay a deposit to the Homeowners'Association ("HOA") to obtain keys to accessible HOA facilities.

8. CONTINGENCIES AND REMOVAL OF CONTINGENGIES:

A. LOAN(S):
(1) This Agreement is, unless otherwise specified in paragraph 3L(1) or an attached CR form, contingent upon Buyer obtaining the loan(s) specified. lf contingent, Buyer shall act diligently and in good faith to obtain the designated loan(s). lf there is no appraisal contingency or the appraisal contingency has been waived or removed, then failure of the Property to appraise at the purchase price does not entitle Buyer to exercise the cancellation right pursuant to the loan contingency if Buyer is otherwise qualified for the specified loan and Buyer is able to satisfy lender's non-appraisal conditions for closing the loan.
(2) Buyer is advised to investigate the insurability of the Property as early as possible, as this may be a requirement for lending. Buyer's ability to obtain insurance for the Property, including fire insurance, is part of Buyer's lnvestigation of Property contingency. Failure of Buyer to obtain insurance may justify cancellation based on the lnvestigation contingency but not the loan contingency.
(3) Buyer's contractual obligations regarding deposit, balance of down payment and closing costs are not contingencies of this Agreement, unless Otherwise Agreed.
(4) lf there is an appraisal contingency, removal of the loan contingency shall not be deemed removal of the appraisal contingency. (5) NO LOAN CONTINGENCY: lf "No loan contingency" is checked in paragraph 3L(1), obtaining any loan specified is NOT B. APP
a contingency of this Agreement. lf Buyer does not obtain the loan specified, and as a result is unable to purchase the Property, Seller may be entitled to Buyer's deposit or other legal remedies.

RAISAL:
(1) This Agreement is, unless otherwise specified in paragraph 3L(2) or an attached CR form, contingent upon a written appraisal of the Property by a licensed or certified appraiser at no less than the amount specified in paragraph 3L(2), without requiring repairs or improvements to the Property. Appraisals are often a reliable source to verify square footage of the subject Property. However, the ability to cancel based on the measurements provided in an appraisal falls within the lnvestigation of Property contingency. The appraisal contingency is solely limited to the value determined by the appraisal.

For any cancellation based upon this appraisal contingency, Buyer shall Deliver a Copy of the written appraisal to Seller, upon request by Seller.
(2) NO APPRAISAL CONTINGENGY: lf "No appraisal contingency" is checked in paragraph 3L(2), then Buyer may not use the loan contingency specified in paragraph 3L(1) to cancel this Agreement if the sole reason for not obtaining the loan is that the appraisal relied upon by Buyer's lender values the property at an amount less than that specified in paragraph 3L(2). lf Buyer is unable to obtain the loan specified solely for this reason, Seller may be entitled to Buyer's deposit or c.
other legal remedies.

INVESTIGATION OF PROPERTY: This Agreement is, as specified affecting, the Property. See
in paragraph 3L(3), contingent upon Buyer's acceptance
of the condition of, and other matter
D. REVIEW OF SELLER
any
DOC
Seller's documents requ ired
RPA12t21(PAGE 5 OF 16)
UMENTS: This Agreement is, as
in paragraph 14A. f -l
Buyer's lnitials W
paragraph 12.
specified in paragraph 3L(4), contingent upon Buyer's review of Seller's lnitials
GALIFORNIA RESIDENTTAL PURCHASE AGREEMENT AND JOTNT ESCROW TNSTRUCTTONS (RPA PAGE 5 OF 16) Produ@d with Lone Wolf Transactions (zipFom Edition) 717 N Haruood St, Suite 2200, Dallas, TX 75201 M.lwdf-com CA 93535 Authen$tt$UBiff DA8ff fet8f t$SSE6Es5tll$Elllncaster, cn e.3s3s.E. . TITLE:

Date: April29, 2022
(1) This Agreement is, as specified in paragraph 3L(5), contingent upon Buyer's ability to obtain the title policy provided for in paragraph 13G and on Buyer's review of a current Preliminary Report and items that are disclosed or observable even if not on record or not specified in the Preliminary Report, and satisfying Buyer regarding the current status of title. Buyer is advised to review all underlying documents and other matters affecting title, including, but not limited to, any documents or deeds referenced in the Preliminary Report and any plotted easements. (2) Buyer has 5 Days after receipt to review a revised Preliminary Report, if any, furnished by the Title Company and cancel the transaction if the revised Preliminary Report reveals material or substantial deviations from a previously provided Preliminary Report.

F. CONDOMINIUM/PLANNED DEVELOPMENT DISCLOSURES (lF APPLICABLE): This Agreement is, as specified in paragraph 3L(6), contingent upon Buyer's review of Common lnterest Disclosures required by Civil Code $ 4525 and under paragraph 11K ('Cl Disclosures").

G. BUYER REVIEW OF LEASED OR LIENED ITEMS CONTINGENCY: Buyer's review of and ability and willingness to assume any lease, maintenance agreement or other ongoing financial obligation, or to accept the Property subject to any lien, disclosed pursuant to paragraph 98(6), is, as specified in paragraph 3L(7), a contingency of this Agreement. Any assumption of the lease shall not require any financial obligation or contribution by Seller. Seller, after first Delivering a Notice to Buyer to Perform, may cancel this Agreement if Buyer, by the time specified in paragraph 3L(7), refuses to enter into any necessary written agreements to accept responsibility for all obligations of Seller-disclosed leased or liened items.

H. REMOVAL OR WAIVER OF CONTINGENCIES WITH OFFER: Buyer shall have no obligation to remove a contractual contingency unless Seller has provided all required documents, reports, disclosures, and information pertaining to that contingency. lf Buyer does remove a contingency without first receiving all required information from Seller, Buyer is relinquishing any contractual rights that apply to that contingency. lf Buyer removes or waives any contingencies without an adequate understanding of the Property's condition or Buyer's ability to purchase, Buyer is acting against the advice of Agent.

I. REMOVAL OF CONTINGENCY OR CANCELLATION:
(1) For any contingency specified in paragraph 3L or 8, Buyer shall, within the applicable period specified, remove the contingency or cancel this Agreement.
(2) For the contingencies for review of Seller Documents, Preliminary Report, and Condominium/Planned Development Disclosures, Buyer shall, within the time specified in paragraph 3L or 5 Days after receipt of Seller Documents or Cl Disclosures, whichever occurs later, remove the applicable contingency in writing or cancel this Agreement. (3) If Buyer does not remove a contingency within the time specified, Seller, after first giving Buyer a Notice to Buyer to Perform (C.A.R. Form NBP), shall have the right to cancel this Agreement.

J. SALE OF BUYER'S PROPERTY: This Agreement and Buyer's ability to obtain financing are NOT contingent upon the sale of any property owned by Buyer unless the Sale of Buyer's Property (C.A.R. Form COP) is checked as a contingency of this Agreement in paragraph 3L(8).

ITEMS INCLUDED IN AND EXCLUDED FROM SALE:

A. NOTE TO BUYER AND SELLER: ltems listed as included or excluded in the Multiple Listing Service (MLS), flyers, marketing materials, or disclosures are NOT included in the purchase price or excluded from the sale unless specified in this paragraph or paragraph 3P or as Otherwise Agreed. Any items included herein are components of the home and are not intended to affect the price. All items are transferred without Seller warranty.

B. ITEMS INCLUDED IN SALE:
(1) All EXISTING fixtures and fittings that are attached to the Property; (2) EXISTING electrical, mechanical, lighting, plumbing and heating fixtures, ceiling fans, fireplace inserts, gas logs and grates, solar power systems, built-in appliances and appliances for which special openings or encasements have been made (whether or not checked in paragraph 3P), window and door screens, awnings, shutters, window coverings (which includes blinds, curtains, drapery, shutters or any other materials that cover any portion of the window), attached floor coverings, television antennas, satellite dishes, air coolers/conditioners, pool/spa equipment (including, but not limited to, any cleaning equipment such as motorized/automatic pool cleaners, pool nets, pool covers), garage door openers/remote controls, mailbox, in-ground landscaping, water features and fountains, water softeners, water purifiers, light bulbs (including smart bulbs) and all items specified as included in paragraph 3P, if currently existing at the time of Acceptance.

Note: lf Seller does not intend to include any item specified as being included above because it is not owned by Seller, whether placed on the Property by Agent, stager or other third party, the item should be listed as being excluded in paragraph 3P or excluded by Seller in a counter offer.
(3) Security System includes any devices, hardware, software, or control units used to monitor and secure the Property, including but not limited to, any motion detectors, door or window alarms, and any other equipment utilized for such purpose. lf checked in paragraph 3P, all such items are included in the sale, whether hard wired or nol (4) Home Automation (Smart Home Features) includes any electronic devices and features including, but not limited to, thermostat controls, kitchen appliances not otherwise excluded, and lighting systems, that are connected (hard wired or wirelessly) to a control unit, computer, tablet, phone, or other "smart" device. Any Smart Home devices and features that are physically affixed to the real property, and also existing light bulbs, are included in the sale. Buyer is advised to use paragraph 3P(1) or an addendum to address more directly specific items to be included. Seller is advised to use a counter offer to address more directly any items to be excluded. (5) Non-Dedicated Devices: lf checked in paragraph 3P, all smart home and security system control devices are included in the sale, except for any non-dedicated personal computer, tablet, or phone used to control such features. Buyer acknowledges that a separate device and access to wifi or lnternet may be required to operate some smart home features (6)
(7)
RPA12t21(
GALTFORNIA RESIDENTTAL PURCHASE AGREEMENT AND JO|NT ESCROW TNSTRUCTTONS (RPA PAGE 6 OF 16) ProducedwithLoneWolf Transactions(zipFormEdition)717NHaruoodSt,Suite2200,Dallas,TX 75201 w.kolf.com cA93535

9. 2022
All items specified
if any such item is
not itself attached to the Property, even if a bracket or other mechanism attached to the component or item is attached to the Property; (iii) furniture and other items secured to the Property for earthquake or safety purposes. Unless otherwise specified in paragraph 3P(1), brackets attached to walls, floors or ceilings for any such component, furniture or item will be removed and holes or other damage shall be repaired, but not painted.

10. ALLOCATION OF COSTS:

A. INSPECTIONS, REPORTS AND CERTIFIGATES: Paragraphs 3Q(1), (2), (3), and (5) only determines who is to pay for the inspection, test, certificate or service ("Report") mentioned; it does not determine who is to pay for any work recommended or identified in the Report. Agreements for payment of required work should be specified elsewhere in paragraph 3Q, or 3R, or in a separate agreement (such as C.A.R. Forms RR, RRRR, ADM or AEA).

B. GOVERNMENT REQUIREMENTS AND CORRECTIVE OR REMEDIAL ACTIONS:
(1) LEGALLY REQUIRED INSTALLATIONS AND PROPERTY IMPROVEMENTS: Any required installation of smoke alarm or carbon monoxide device(s) or securing of water heater shall be completed within the time specified in paragraph 3N(4) and paid by the Party specified in paragraph 3A(4). lf Buyer is to pay for these items, Buyer, as instructed by Escrow Holder, shall deposit funds into escrow or directly to the vendor completing the repair or installation. Prior to Close Of Escrow, Seller shall Deliver to Buyer written statement(s) of compliance in accordance with any Law, unless Seller is exempt. lf Seller is to pay for these items and does not fulfill Seller's obligation in the time specified, and Buyer incurs costs to comply with lender requirements concerning those items, Seller shall be responsible for Buyer's costs. (2) POINT OF SALE REQUIREMENTS:
(A) Point of sale inspections, reports and repairs refer to any such actions required to be completed before or after Close Of Escrow that are required in order to close under any Law and paid by Party specified in paragraphs 3Q(5) and 3Q(6). Unless Parties Otherwise Agree to another time period, any such repair, shall be completed prior to final verification of Property. lf Buyer agrees to pay for any portion of such repair, Buyer, shall (i) directly pay to the vendor completing the repair or (ii) provide an invoice to Escrow Holder, deposit funds into escrow sufficient to pay for Buyer's portion of such repair and request Escrow Holder pay the vendor completing the repair. (B) Buyer shall be provided, within the time specified in paragraph 3N(1), unless Parties Otherwise Agree to another time period, a Copy of any required government-conducted or point-of-sale inspection report prepared pursuant to this Agreement or in anticipation of this sale of the Property. (3) REINSPECTION FEES: lf any repair in paragraph 10B(1) is not completed within the time specified and the lender requires an additional inspection to be made, Seller shall be responsible for any corresponding reinspection fee. lf Buyer incurs costs to comply with lender requirements concerning those items, Seller shall be responsible for those costs. (4) INFORMATION AND ADVICE ON REQUIREMENTS: Buyer and Seller are advised to seek information from a knowledgeable source regarding local and State mandates and whether they are point of sale requirements or requirements of ownership. Agents do not have expertise in this area and cannot ascertain all of the requirements or costs of compliance.

C. HOMEWARRANTY:
(1) Buyer shall choose the coverages, regardless of any optional coverages indicated, of the home warranty plan and Buyer shall pay any cost of that plan, chosen by Buyer, that exceeds the amount allocated to Seller in paragraph 3a(18). Buyer is informed that home warranty plans have many optional coverages, including but not limited to, coverages for Air Conditioner and Pool/Spa. Buyer is advised to investigate these coverages to determine those that may be suitable for Buyer. (2) lf Buyer waives the purchase of a home warranty plan in paragraph 3Q(18), Buyer may still purchase a home warran$l plan, at Buyer's expense, prior to Close Of Escrow.

11. STATUTORY AND OTHER DISCLOSURES (TNCLUDTNG LEAD-BASED PATNT HAZARD DTSCLOSURES) AND CANCELLATION RIGHTS:

A. TDS, NHD, AND OTHERSTATUTORYAND SUPPLEMENTAL DISCLOSURES:
(1) Seller shall, within the time specified in paragraph 3N(1), Deliver to Buyer: unless exempt, fully completed disclosures or notices required by SS 1102 el. seq. and 1103 et. seq. of the Civil Code ("Statutory Disclosures"). Statutory Disclosures include, but are not limited to, a Real Estate Transfer Disclosure Statement (C.A.R. Form TDS), Natural Hazard Disclosure Statement ('NHD"), notice or actual knowledge of release of illegal controlled substance, notice of special tax and/or assessments (or, if allowed, substantially equivalent notice regarding the Mello-Roos Community Facilities Act of 1982 and lmprovement Bond Act of 'l 915) and, if Seller has actual knowledge, of industrial use and military ordnance location (C.A.R. Form SPQ or ESD), and, if the Property is in a high or very high fire hazard severity area, the information, notices, documentation, and agreements required by SS 1 102.6(f) and 1102.19 of the Civil Code (C.A.R. Form FHDS). (2) The Real Estate Transfer Disclosure Statement required by this paragraph is considered fully completed if Seller has completed the section titled Coordination with Other Disclosure Forms by checking a box (Section l), and Seller has completed and answered all questions and Signed the Seller's lnformation section (Section ll) and the Seller's Agent, if any, has completed and Signed the Seller's Agent's section (Section lll), or, if applicable, an Agent Visual lnspection Disclosure (C.A.R. Form AVID). Section V acknowledgment of receipt of a Copy of the TDS shall be Signed after all previous sections, if applicable, have been completed. Nothing stated herein relieves a Buyer's Agent, if any, from the obligation to (i) conduct a reasonably competent and diligent visual inspection of the accessible areas of the Property and disclose, on Section lV of the TDS, or an AVID, material facts affecting the value or desirability of the Property that were or should have been revealed by such an inspection or (ii) complete any sections on all disclosures required to be completed by Buyer's Agent. (3) Seller shall, within the time specified in paragraph 3N(1), provide "Supplemental Disclosures" as follows: (i) unless exempt from the obligation to provide a TDS, complete a Seller Property Questionnaire (C.A.R. Form SPQ) by answering all questions and Signing and Delivering a Copy to Buyer; (ii) if exempt from the obligation to provide a TDS, complete an Exempt Seller Disclosure (C.A.R. Form ESD) by answering all questions and Signing and Delivering a Copy to Buyer. (4) ln the event Seller or Seller's Agent, prior to Close Of Escrow, becomes aware of adverse conditions materially affecting RPA12121
GALIFORNIA RESTDENTTAL PURCHASE AGREEMENT AND JO|NT ESCROW TNSTRUCTTONS (RpA PAGE 7 OF 16) Produced with Lone Wolf Transactions (zipForm Edition) 717 N HaMood St, Suite 2200, Dallas, TX 75201 w.lwolf.com CA 93535 cA 93535 Dale: April29,2022

LEAD DI
(1) Seller shall, within the time specified in paragraph 3N(1), for any residential property built before January 1,1978, unless exempted by Law, Deliver to Buyer a fully completed Federal Lead-Based Paint Disclosures (C.A.R. Form LPD) and pamphlet ("Lead Disclosures").
(2) Buyer shall, within the time specified in paragraph 3L(3), have the opportunity to conduct a risk assessment or to inspect for the presence of lead-based paint hazards.

C. HOME FIRE HARDENING DISCLOSURE AND ADVISORY: For any transaction where a TDS is required, the property is located in a high or very high fire hazard severity zone, and the home was constructed before January 1,2010 , Seller shall, within the time specified in paragraph 3N(1), Deliver to Buyer: (i) a home hardening disclosure required by law; and (ii) a statement of features of which the Seller is aware that may make the home vulnerable to wildfire and flying embers; and (iii) a final inspection report regarding compliance with defensible space requirements if one was prepared pursuant to Government Code $ 51182 (C.A.R. Form FHDS).

D. DEFENSIBLE SPAGE DISCLOSURE AND ADDENDUM: For any transaction in which a TDS is required and the property is located in a high or very high fire hazard severity zone, Seller shall, within the time specified in paragraph 3N(1), Deliver to Buyer (i) a disclosure of whether the Property is in compliance with any applicable defensible space laws designed to protect a structure on the Property from flre; and (ii) an addendum allocating responsibility for compliance with any such defensible space law (C.A.R. Form FHDS).

E. WAIVER PROHIBITED: Waiver of Statutory, Lead, and other Disclosures in paragraphs 11A(1), 11B, 11C, and 11D are prohibited by Law.

F. RETURN OF SIGNED GOPIES: Buyer shall, within the time specified in paragraph 3L(3) OR 5 Days after Delivery of any disclosures specified in paragraphs 11 A, B, C or D, and defensible space addendum in paragraph 11D, whichever is later, return Signed Copies of the disclosures, and if applicable, addendum, to Seller.

G. TERMINATION RIGHTS:
(1) Statutory and Other Disclosures: lf any disclosure specified in paragraphs 11A, B, G, or D, or subsequent or amended disclosure to those just specified, is Delivered to Buyer after the offer is Signed, Buyer shall have the right to terminate this Agreement within 3 Days after Delivery in person, or 5 Days after Delivery by deposit in the mail, or by an electronic record or email satisfying the Uniform Electronic Transactions Act (UETA), by giving written notice of rescission to Seller or Seller's Authorized Agent. lf Buyer does not rescind within this time period, Buyer has been deemed to have approved the disclosure and shall not have the right to cancel.
(2) Defensible Space Compliance: lf, by"the time specified in paragraph 11F, Buyer does not agree to the terms regarding defensible space compliance Delivered by Seller, as indicated by mutual signatures on the FHDS, then Seller, after first Delivering a Notice to Buyer to Perform, may cancel this Agreement.

H. WITHHOLDING TAXES: Buyer and Seller hereby instruct Escrow Holder to withhold the applicable required amounts to comply with federal and California withholding Laws and forward such amounts to the lnternal Revenue Service and Franchise Tax Board, respectively. However, no federal withholding is required if, prior to Close Of Escrow, Seller Delivers (i) to Buyer and Escrow Holder a fully completed affidavit (C.A.R. Form AS) sufficient to avoid withholding pursuant to federal withholding Law (FIRPTA); OR (ii) to a qudtifieO substitute'(usually a title company or an independent esdrow company) a fully completed affidavit (C.A.R. Form AS) sufficient to avoid withholding pursuant to federal withholding Law AND the qualified substitute Delivers to Buyer and Escrow Holder an affidavit signed under penalty of perjury (C.A.R. Form QS) that the qualified substitute has received the fully completed Seller's affidavit and the Seller states that no federal withholding is required; OR (iii) to Buyer other documentation satisfying thg requirements under lnternal Revenue Code $ 1445 (FIRPTA). No withholding is required under California Law if, prior to Close Of Escrow, Escrow Holder has received sufficient documentation from Seller that no withholding is required, and Buyer has been informed by Escrow Holder.

L MEGAN'S LAW DATABASE DISCLOSURE: Notice: Pursuant to g 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an lnternet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offender's criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides. (Neither Seller nor Agent are required to check this website. lf Buyer wants further information, Agent recommends that Buyer obtain information from this website during Buyer's investigation contingency period. Agents do not have expertise in this area.) J. NOTICE REGARDING GAS AND HAZARDOUS LIQUID TRANSMISSION PIPELINES: This notice is being provided simply to inform you that information about the general location of gas and hazardous liquid transmission pipelines is available to the public via the National Pipeline Mapping System (NPMS) lnternet Web site maintained by the United States Department of Transportation at http://www.npms.phmsa.dot.gov/. To seek further information about possible transmission pipelines near the Property, you may contact your local gas utility or other pipeline operators in the area. Contact information for pipeline operators is searchable by ZIP Code and county on the NPMS lnternet Website. (Neither Seller nor Agent are required to check this website. lf Buyer wants further information, Agent recommends that Buyer obtain information from this website during Buyer's investigation contingency period. Agents do not have expertise in this area.) K. CONDOMINIUM/PLANNED DEVELOPMENT DISCLOSURES:
(1) Seller shall, within the time specified in paragraph 3N(1), disclose to Buyer whether the Property is a condominium or is located in a planned development, other common interest development, or otherwise subject to covenanls, conditions, L.

RPA 1
GALIFORNIA RESIDENTIAL PURCHASE AGREEMENT AND JOTNT ESCROW TNSTRUCTTONS (RPA PAGE 8 OF 16) Produc€dwithLoneWolf Transactions(zipFormEdition)7l7NHaruoodSt,Suite2200,Dallas,TX 75201 w.lwolf.com C493535 AuthenlDiuUBffDA88fe38PlUSSloEsSlll$flttncaster, cn 93535 Date: Aprit 2e,2022 M. KNOWN MATERIAL FACTS: Seller shall, within the time specified in paragraph 3N(1), DISCLOSE KNOWN MATERIAL FACTS AND DEFECTS affecting the Property, including, but not limited to, known insurance claims within the past five years, or provide Buyer with permission to contact lender to get such information (C.A.R. Form ARC), and make any and all other disclosures required by Law.

12. BUYER'S INVESTIGATION OF PROPERTY AND MATTERS AFFECTING PROPERTY:

A. Buyer shall, within the time specified in paragraph 3L(3), have the right, at Buyer's expense unless Othenryise Agreed, to conduct inspections, investigations, tests, surveys and other studies ("Buyer lnvestigations").

B. Buyer lnvestigations include, but are not limited to:
(1) lnspections regarding any physical attributes of the Property or items connected to the Property, such as:
(A) A general home inspection.
) An inspection for lead-based paint and other lead-based paint hazards. ) An inspection specifically for wood destroying pests and organisms. Any inspection for wood destroying pests and organisms shall be prepared by a registered Structural Pest Control company; shall cover the main building and attached structures; may cover detached structures; shall NOT include water tests of shower pans on upper level units unless the owners of property below the shower consent, shall NOT include roof coverings; and, if the Property is a unit in a condominium or other common interest subdivision, the inspection shall include only the separate interest and any exclusive-use areas being transferred, and shall NOT include common areas, and shall include a report ("Pest Control Report") showing the findings of the company which shall be separated into sections for evident infestation or infections (Section 1) and for conditions likely to lead to infestation or infection (Section 2). (D) Any other specific inspections of the physical condition of the land and improvements. (2) All other Buyer lnvestigations, such as insurance, not specified above. See, Buyer's lnvestigation Advisory (C.A.R. Form BIA) for more.
(3) A review of reports, disclosures or information prepared by or for Seller and Delivered to Buyer pursuant to paragraphs 3, 10,11, and 14A.

C. Without Seller's prior written consent, Buyer shall neither make nor cause to be made: (i) invasive or destructive Buyer lnvestigations, except for minimally invasive testing required to prepare a Pest Control Report, which shall not include any holes or drilling though stucco or similar material; or (ii) inspections by any governmental building or zoning inspector or government employee, unless required by Law.

D. Seller shall make the Property available for all Buyer lnvestigations. Seller is not obligated to move any existing personal property.

Seller shall have water, gas, electricity and all operable pilot lights on for Buyer's lnvestigations and through the date possession is delivered to Buyer. Buyer shall, (i) by the time specified in paragraph 3L(3), complete Buyer lnvestigations and satisfu themselves as to the condition of the Property, and either remove the contingency or cancel this Agreement, and (ii) by the time specified in paragraph 3L(3) or 3 Days after receipt of any lnvestigation report, whichever is later, give Seller at no cost, complete Copies of all such reports obtained by Buyer, which obligation shall survive the termination of this Agreement. This Delivery of lnvestigation reports shall not include any appraisal, except an appraisal received in connection with an FHA or VA loan.

E. Buyer indemnity and Seller protection for entry upon the Property: Buyer shall: (i) keep the Property free and clear of liens; (ii) repair all damage arising from Buyer lnvestigations; and (iii) indemnify and hold Seller harmless from all resulting liability, claims, demands, damages and costs. Buyer shall carry, or Buyer shall require anyone acting on Buyer's behalf to carry, policies of liability, workers' compensation and other applicable insurance, defending and protecting Seller from liability for any injuries to persons or property occurring during any Buyer lnvestigations or work done on the Property at Buyer's direction prior to Close Of Escrow. Seller is advised that certain protections may be afforded Seller by recording a "Notice of Non-Responsibility" (C.A.R. Form NNR) for Buyer lnvestigations and work done on the Property at Buyer's direction. Buyer's obligations under this paragraph shall survive the termination of this Agreement.

13. TITLE AND VESTING:

A. Buyer shall, within the time specified in paragraph 3N(1), be provided a current Preliminary Report by the person responsible for paying for the title report in paragraph 3O(8). lf Buyer is responsible for paying, Buyer shall act diligently and in good faith to obtain such Preliminary Report within the time specified. The Preliminary Report is only an offer by the title insurer to issue a policy of title insurance and may not contain every item affecting title. The company providing the Preliminary Report shall, prior to issuing a Preliminary Report, conduct a search of the General lndex for all Sellers except banks or other institutional lenders selling properties they acquired through foreclosure (REOs), corporations, and government entities.

B. Title is taken in its present condition subject to all encumbrances, easements, covenants, conditions, restrictions, rights and other matters, whether of record or not, as of the date of Acceptance except for: (i) monetary liens of record unless Buyer is assuming those obligations or taking the Property subject to those obligations; and (ii) those matters which Seller has agreed to remove in writing. For any lien or matter not being transferred upon sale, Seller will take necessary action to deliver title free and clear of such lien or matter.

C. Seller shall within 7 Days after request, give Escrow Holder necessary information to clear title.

D. Seller shall, within the time specified in paragraph 3N(1), disclose to Buyer all matters known to Seller affecting title, whether of record or not.

E. lf Buyer is a legal entity and the Property purchase price is at least $300,000 and the purchase price is made without a bank loan or similar form of external financing, a Geographic Targeting Order (GTO) issued by the Financial Crimes Enforcement Network, U.S. Department of the Treasury, requires title companies to collect and report certain information about the Buyer, depending on where the Property is located. Buyer agrees to cooperate with the title company's effort to comply with the GTO.

F. Buyer shall, after Close Of Escrow, receive a recorded grant deed or any other conveyance document required to convey title (or, for stock cooperative or long{erm lease, an assignment of stock certificate or of Seller's leasehold interest), including oil, mineral and water rights if currently owned by Seller. Title shall vest as designated in Buyer's vesting instructions. The recording document shall contain Buyer's post-closing mailing address to enable Buyer's receipt of the recorded conveyance

AND TAX
GALIFORNTA RESTDENTIAL PURCHASE AGREEMENT AND JO|NT ESCROW TNSTRUCTTONS (RPA PAGE 9 OF 16) Produced with Lone Wolf Transactions (zipForm Edition) 717 N HaMood St, Suite 2200, Dallas, TX 75201 M.lwolf.com CA 93535 (B
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AuthenlriuuBitf DABfl tet8lts5386E8511f€[lf lncaster, cA e3s3s G. Buyer shall receive a "ALTA/CLTA Homeowner's Policy of Title lnsurance" or equivalent pol Date'. April29,2022
icy of title insurance, if applicable
to the type of property and buyer. Escrow Holder shall request this policy. lf a ALTA/CLTA Homeowner's Policy of Title lnsurance is not offered, Buyer shall receive a CLTA Standard Coverage policy unless Buyer has chosen another policy and instructed Escrow Holder in writing of the policy chosen and agreed to pay any increase in cost. Buyer should consult with the Title Company about the availability, and difference in coverage, and cost, if any, between a ALTA/CLTA Homeowner's Policy and a CLTA Standard Coverage policy and other title policies and endorsements. Buyer should receive notice from the Title Company on its Preliminary (Title) Report of the type of coverage offered. lf Buyer is not notified on the Preliminary (Title) Report or is not satisfied with the policy offered, and Buyer nonetheless removes the contingency for Review of the Preliminary Report, Buyer will receive the policy as specified in this paragraph.

14. TIME PERIODS; REMOVAL OF CONTINGENGIES; CANCELLATION RIGHTS: The following time periods may only be extended, altered, modified or changed by mutual written agreement. Any removal of contingencies or cancellation under this paragraph by either Buyer or Seller must be exercised in good faith and in writing (C.A.R. Form CR or CC).

A. SELLER DELMRY OF DOCUMENTS: Seller shall, within the time specified in paragraph 3N(1), Deliver to Buyer all reports, disclosures and information ("Reports") forwhich Seller is responsible as specified in paragraphs 98(6), 10, 11A, 118,11C, 11D, 11H, 11K, 11L, 11M, 13A, and 13D.

B. BUYER REVIEW OF DOCUMENTS; REPAIR REQUEST; CONTINGENCY REMOVAL OR CANCELLATION (1) Buyer has the time specified in paragraph 3 to: (i) perform Buyer lnvestigations; review all disclosures, reports, lease documents to be assumed by Buyer pursuant to paragraph 98(6), and other applicable information, which Buyer receives from Seller; and approve all matters affecting the Property; and (ii) Deliver to Seller Signed Copies of Statutory and Other Disclosures Delivered by Seller in accordance with paragraph 11. (2) Buyer may, within the time specified in paragraph 3L(3), request that Seller make repairs or take any other action regarding the Property (C.A.R. Form RR). Seller has no obligation to agree to or respond to Buyer's requests (C.A.R.

Form RR or RRRR). lf Seller does not agree or does not respond, Buyer is not contractually entitled to have the repairs or other requests made and may only cancel based on contingencies in this Agreement. (3) Buyer shall, by the end of the times specified in paragraph 3L (or as Otherwise Agreed), Deliver to Seller a removal of the applicable contingency or cancellation of this Agreement (C.A.R. Form CR or CC). However, if any report, disclosure, or information forwhich Seller is responsible, otherthan those in paragraph 11A or 11B, is not Delivered within the time specified in paragraph 3N(1), then Buyer has 5 Days after Delivery of any such items, or the times specified in paragraph 3L, whichever is later, to Deliver to Seller a removal of the applicable contingency or cancellation of this Agreement. lf Delivery of any Report occurs after a contractual contingency pertaining to that Report has already been waived or removed, the Delivery of the Report does not revive the contingency but there may be a right to terminate for a subsequent or amended disclosure under paragraph 11G.
(4) Continuation of Gontingency: Even after the end of the time specified in paragraph 3L and before Seller cancels, if at all, pursuant to paragraph 14C, Buyer retains the right, in writing, to either (i) remove remaining contingencies, or (ii) cancel this Agreement based on a remaining contingency. Once Buyer's written removal of all contingencies is Delivered to Seller, Seller may not cancel this Agreement pursuant to paragraph 14C(1).

C. SELLERRIGHTTO GANCEL:
(1) SELLER RIGHT TO CANCEL; BUYER CONTINGENGIES: lf, by the time specified in this Agreement, Buyer does not Deliver to Seller a removal of the applicable contingency or cancellation of this Agreement, then Seller, after first Delivering to Buyer a Notice to Buyer to Perform (C.A.R. Form NBP), may cancel this Agreement. ln such event, Seller shall authorize the return of Buyer's deposit, except for fees incurred by Buyer. (2) SELLER RIGHT TO CANCEL; BUYER CONTRACT OBLIGATIONS: Seller, after first Delivering to Buyer a Notice to Buyer to Perform, may cancel this Agreement if, by the time specified in this Agreement, Buyer does not take the following action(s):
(i) Deposit funds as required by paragraph 3D(1 ) or 3D(2) or if the funds deposited pursuant to paragraph 3D(1) or 3D(2) are not good when deposited; (ii) Deliver updated contact information for Buyer's lender(s) as required by paragraph 5C(3); (iii) Deliver a notice of FHA or VA costs or terms, if any, as specified by paragraph 5C(4) (C.A.R. Form RR); (iv) Deliver verification, or a satisfactory verification if Seller reasonably disapproves of the verification already provided, as required by paragraph 58 or 6A; (v) Deliver a letter as required by paragraph 68; (vi) ln writing assume or accept leases or liens specified in paragraph 8G; (vii) Return Statutory and Other Disclosures as required by paragraph 11F; (viii) Cooperate with the title company's effort to comply with the GTO as required by paragraph tSE; (ix) Sign or initial a separate liquidated damages form for an increased deposit as required by paragraphs 5A(2) and 29; (x) Provide evidence of authority to Sign in a representative capacity as specified in paragraph 28; or (xi) Perform any additional Buyer contractual obligation(s) included in this Agreement. ln such event, Seller shall authorize the return of Buyer's deposit, except for fees incurred by Buyer and other expenses already paid by Escrow Holder pursuant to this Agreement prior to Seller's cancellation. (3) SELLER RIGHT TO GANCEL; SELLER CONTINGENGIES: Seller may cancel this Agreement by good faith exercise of any Seller contingency included in this Agreement, or Othenvise Agreed, so long as that contingency has not already been removed or waived in writing.

D. BUYER RIGHT TO CANCEL:
(1) BUYER RIGHT TO CANCEL; SELLER GONTINGENCIES: lf, by the time specified in this Agreement, Seller does not Deliver to Buyer a removal of the applicable contingency or cancellation of this Agreement, then Buyer, after first Delivering to Seller a Notice to Seller to Perform (C.A.R. Form NSP), may cancel this Agreement. ln such event, Seller shall authorize the return of Buyer's deposit, except for fees incurred by Buyer and other expenses already paid by Escrow Holder pursuant to this Agreement prior to Buyer's cancellation. (2) BUYER RIGHT TO CANCEL; SELLER CONTRACT OBLIGATIONS: lf, by the time specified, Seller has not Delivered any item specified in paragraph 3N(1) or Seller has not performed any Seller contractual obligation included in this Agreement by the time specified, Buyer, after first Delivering to Seller a Notice to Seller to Perform, may cancel this Agreement. (3) BUYER RIGHT TO CANCEL; BUYER CONTINGENCIES: Buyer may cancel this Agreement by good faith exercise of any Buyer contingency included in paragraph
removed in writing.

RPA12t21(PAGE 10 OF 16)
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GALTFORNTA RESTDENTTAL PURCHASE AGREEMENT AND JOINT ESCROW TNSTRUCTIONS (RPA PAGE 10 OF 16) ProducedwithLoneWolfTransactions(zipFormEdition)7l7NHaMoodSt,Suite2200,Dallas,TX 75201 M.lwolf.com CA93535 AuthenfeigHBitf DABfl tet5l1u53l6E8511l5[,0t]ncaster, cn gssgs E. NOTICE TO BUYER OR SELLER TO PERFORM: The Notice to Buyer to Perform or Notice Dale'. April29,2022
to Seller to Perform shall: (i) be in
writing; (ii) be Signed by the applicable Buyer or Seller; and (iii) give the other Party at least 2 Days after Delivery (or until the time specified in the applicable paragraph, whichever occurs last) to take the applicable action. A Notice to Buyer to Perform or Notice to Seller to Perform may not be Delivered any earlier than 2 Days prior to the Scheduled Performance Day to remove a contingency or cancel this Agreement or meet an obligation specified in paragraph 14, whether or not the Scheduled Performance Day falls on a Saturday, Sunday or legal holiday. lf a Notice to Buyer to Perform or Notice to Seller to Perform is incorrectly Delivered or specifies a time less than the agreed time, the notice shall be deemed invalid and void, and Seller or Buyer shall be required to Deliver a new Notice to Buyer to Perform or Notice to Seller to Perform with the specified timeframe.

F. EFFECT OF REMOVAL OF CONTINGENCIES:
(1) REMOVAL OF BUYER CONTINGENGIES: lf Buyer removes any contingency or cancellation rights, unless Othenivise Agreed, Buyer shall conclusively be deemed to have: (i) completed all Buyer lnvestigations, and review of reports and other applicable information and disclosures pertaining to that contingency or cancellation right; (ii) elected to proceed with the transaction; and (iii) assumed all liability, responsibility and expense for the non-delivery of any reports, disclosures or information outside of Seller's control and for any Repairs or corrections pertaining to that contingency or cancellation right, or for the inability to obtain financing. (2) REMOVAL OF SELLER CONTINGENCIES: lf Seller removes any contingency or cancellation rights, unless Otheruvise Agreed, Seller shall conclusively be deemed to have: (i) satisfied themselves regarding such contingency, (ii) elected to proceed with the transaction; and (iii) given up any right to cancel this Agreement based on such contingency.

G. DEMAND TO CLOSE ESCROW: Before Buyer or Seller may cancel this Agreement for failure of the other Party to close escrow pursuant to this Agreement, Buyer or Seller must first Deliver to the other Party a Demand to Close Escrow (C.A.R.

Form DCE). The DCE shall: (i) be Signed by the applicable Buyer or Seller; and (ii) give the other Party at least 3 Days after Delivery to close escrow. A DCE may not be Delivered any earlier than 3 Days prior to the Scheduled Performance Day for the Close Of Escrow. lf a DCE is incorrectly Delivered or specifies a time less than the above timeframe, the DCE shall be deemed invalid and void, and Seller or Buyer shall be required to Deliver a new DCE.

H. EFFECT OF CANCELLATION ON DEPOSITS: lf Buyer or Seller gives written notice of cancellation pursuant to rights duly exercised under the terms of this Agreement, the Parties agree to Sign and Deliver mutual instructions to cancel the sale and escrow and release deposits, if any, to the Party entitled to the funds, less (i) fees and costs paid by Escrow Holder on behalf of that Party, if required by this Agreement; and (ii) any escrow cancellation fee charged to that party. Fees and costs may be payable to service providers and vendors for services and products provided during escrow. A release of funds will require mutual Signed release instructions from the Parties, judicial decision or arbitration award. A Party may be subject to a civil penalty of up to $1,000 for refusal to Sign cancellation instructions if no good faith dispute exists as to which Party is entitled to the deposited funds (Civil Code S 1057.3). Note: Neither Agents nor Escrow Holder are qualified to provide any opinion on whether either Party has acted in good faith or which Party is entitled to the deposited funds. Buyer and Seller are advised to seek the advice of a qualified California real estate attorney regarding this matter.

15. REPAIRS: Repairs shall be completed prior to final verification of condition unless Otherwise Agreed. Repairs to be performed at Seller's expense may be performed by Seller or through others, provided that the work complies with applicable Law, including governmental permit, inspection and approval requirements. Repairs shall be performed in a good, skillful manner with materials of quality and appearance comparable to existing materials. Buyer acknowledges that exact restoration of appearance or cosmetic items following all Repairs may not be possible. Seller shall: (i) obtain invoices and paid receipts for Repairs performed by others; (ii) prepare a written statement indicating the Repairs performed by Seller and the date of such Repairs; and (iii) provide Copies of invoices and paid receipts and statements to Buyer prior to final verification of condition.

16. FINAL VERIFICATION OF CONDITION: Buyer shall have the right to make a final verification of the Property condition within the time specified in paragraph 3J, NOT AS A CONTINGENCY OF THE SALE, but solely to confirm: (i) the Property is maintained pursuant to paragraph 78; (ii) Repairs have been completed as agreed; and (iii) Seller has complied with Seller's other obligations under this Agreement (C.A.R. Form VP).

17. PRORATIONS OF PROPERTY TAXES AND OTHER ITEMS: Unless Othenrvise Agreed, the following items shall be PAID CURRENT and prorated between Buyer and Seller as of Close Of Escrow: real property taxes and assessments, interest, Seller rental payments, HOA regular assessments due prior to Close Of Escrow, premiums on insurance assumed by Buyer, payments on bonds and assessments assumed by Buyer, and payments on Mello-Roos and other Special Assessment District bonds and assessments that are now a lien. Seller shall pay any HOA special or emergency assessments due prior to Close Of Escrow. The following items shall be assumed by Buyer WITHOUT CREDIT toward the purchase price: prorated payments on Mello-Roos and other Special Assessment District bonds and assessments and HOA special or emergency assessments that are due after Close Of Escrow. Property will be reassessed upon change of ownership. Any supplemental tax bills delivered to Escrow Holder prior to closing shall be prorated and paid as follows: (i) for periods after Close Of Escrow, by Buyer; and (ii) for periods prior to Close Of Escrow, by Seller (see C.A.R.

Form SPT or SBSA for further information). Seller agrees all service fees, maintenance costs and utility bills will be paid current up and through the date of Close Of Escrow. TAX BILLS AND UTILITY BILLS ISSUED AFTER CLOSE OF ESCROW SHALL BE HANDLED DIRECTLY BETWEEN BUYER AND SELLER. Prorations shall be made based on a 30-day month.

18. BROKERSANDAGENTS:

A. COMPENSATION: Seller or Buyer, or both, as applicable, agree to pay compensation to Broker as specified in a separate written agreement between Broker and that Seller or Buyer. Compensation is payable upon Close Of Escrow, or if escrow does not close, as otherwise specified in the agreement between Broker and that Seller or Buyer.

B. SCOPE OF DUTY: Buyer and Seller acknowledge and agree that Agent: (i) Does not decide what price Buyer should pay or Seller should accept; (ii) Does not guarantee the condition of the Property; (iii) Does not guarantee the performance, adequacy or completeness of inspections, services, products or repairs provided or made by Seller or others; (iv) Does not have an obligation to conduct an inspection of common areas or areas off the site of the Property; (v) Shall not be responsible for identifying defects on the Property, in common areas, or offsite unless such defects are visually observable by an inspection of reasonably accessible areas of the Property or are known to Agent; (vi) Shall not be responsible for inspecting public records or permits concerning the title or use of Property; (vii) Shall not be responsible for identifying the location of boundary lines or other items affecting title; (viii) Shall not be responsible for verifying square footage, representations of others or information contained in lnvestigation reports, Multiple Listing Service, advertisements, flyers or other promotional material; (ix) Shall not be responsible for determining the fair market value of the Property or any personal property included in the sale; (x) Shall not be responsible for providing legal or tax advice regarding any aspect of a transaction entered into by Buyer or Seller; and (xi) Shall not be responsible for providing other advice or information that exceeds the knowledge, pducatQn and experience required to perform real estate licensed activity. *,o ,,,o" l;;il;li:;:;"'"'""n'"n"';;",""-,."u4 "'*"**' "::::;:J:J appropriate professionars H
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19. JOINT ESCROW INSTRUCTIONS TO ESCROW HOLDER;
A. The following paragraphs, or applicable portions thereof, of this Agreement constitute the joint escrow instructions of Buyer and Seller to Escrow Holder, which Escrow Holder is to use along with any related counter offers and addenda, and any additional mutual instructions to close the escrow: paragraphs 1,3A, 38,3D-G,3N(2),3Q, 3R, 4A,48,5A(1-2) 5D,5E, 108(2XA),108(3),10C,11H,11K(21,13 (except 13D),14H, 17,18A,19,23,25,27,28,32,33, and paragraph 3 ofthe Real Estate Brokers Section. lf a Copy of the separate compensation agreement(s) provided for in paragraph 18A or paragraph C of the Real Estate Brokers Section is deposited with Escrow Holder by Agent, Escrow Holder shall accept such agreement(s) and pay out from Buyer's or Selle/s funds, or both, as applicable, the Broker's compensation provided for in such agreement(s).

The terms and conditions of this Agreement not set forth in the specified paragraphs are additional matters for the information of Escrow Holder, but about which Escrow Holder need not be concerned.

B. Buyer and Seller will receive Escrow Holder's general provisions, if any, directly from Escrow Holder. To the extent the general provisions are inconsistent or conflict with this Agreement, the general provisions will control as to the duties and obligations of Escrow Holder only. Buyer and Seller shall Sign and return Escrow Holder's general provisions or supplemental instructions within the time specified in paragraph 3N(2). Buyer and Seller shall execute additional instructions, documents and forms provided by Escrow Holder that are reasonably necessary to close the escrow and, as directed by Escrow Holder, within 3 Days, shall pay to Escrow Holder or HOA or HOA management company or others any fee required by paragraphs 3, 8, 10, 11, or elsewhere in this Agreement.

C. A Copy of this Agreement including any counter offe(s) and addenda shall be delivered to Escrow Holder within 3 Days after Acceptance. Buyer and Seller authorize Escrow Holder to accept and rely on Copies and Signatures as defined in this Agreement as originals, to open escrow and for other purposes of escrow. The validity of this Agreement as between Buyer and Seller is not affected by whether or when Escrow Holder Signs this Agreement. Escrow Holder shall provide Seller's Statement of lnformation to Title Company when received from Seller, if a separate company is providing title insurance. lf Seller delivers an affidavit to Escrow Holder to satisfy Seller's FIRPTA obligation under paragraph 11H, Escrow Holder shall deliver to Buyer, Buyer's Agent, and Seller's Agent a Qualified Substitute statement that complies with federal Law. lf Escrow Holder's Qualified Substitute statement does not comply with federal law, the Parties instruct escrow to withhold all applicable required amounts under paragraph 1 1H.

D. Agents are not a party to the escrow, except for Brokers for the sole purpose of compensation pursuant to paragraph 18A and paragraph 3 of the Real Estate Brokers Section. lf a Copy of the separate compensation agreement(s) provided for in either of those paragraphs is deposited with Escrow Holder by Agent, Escrow Holder shall accept such agreement(s) and pay out from Buyer's or Seller's funds, or both, as applicable, the Broker's compensation provided for in such agreement(s).Buyer and Seller irrevocably assign to Brokers compensation specified in paragraph 18A, and inevocably instruct Escrow Holder to disburse those funds to Brokers at Close Of Escrow or pursuant to any other mutually executed cancellation agreement. Compensation instructions can be amended or revoked only with the written consent of Brokers. Buyer and Seller shall release and hold harmless Escrow Holder from any liability resulting from Escrow Holdeds payment to Broker(s) of compensation pursuant to this Agreement.

E. Buyer and Seller acknowledge that Escrow Holder may require invoices for expenses under this Agreement. Buyer and Seller, upon request by Escrow Holder, within 3 Days or within a sufficient time to close escrow, whichever is sooner, shall provide any such invoices to Escrow Holder.

F. Upon receipt, Escrow Holder shall provide Buyer, Seller, and each Agent verification of Buyer's deposit of funds pursuant to paragraphs 5A(1) and 5A(2). Once Escrow Holder becomes aware of any of the following, Escrow Holder shall immediately notify each Agent: (i) if Buye/s initial or any additional deposit or down payment is not made pursuant to this Agreement, or is not good at time of deposit with Escrow Holder; or (ii) if Buyer and Seller instruct Escrow Holder to cancel escrow.

G. A Copy of any amendment that affects any paragraph of this Agreement for which Escrow Holder is responsible shall be delivered to Escrow Holder within 3 Days after mutual execution of the amendment.

20. SELECTION OF SERVICE PROVIDERS: Agents do not guarantee the performance of any vendors, service or product providers ("Providers"), whether referred by Agent or selected by Buyer, Seller or other person. Buyer and Seller may select ANY Providers of their own choosing.

21. MULTIPLE LISTING SERVICE ("MLS"): Agents are authorized to report to the MLS that an offer has been accepted and, upon Close Of Escrow, the sales price and other terms of this transaction shall be provided to the MLS to be published and disseminated to persons and entities authorized to use the information on terms approved by the MLS. Buyer acknowledges that: (i) any pictures, videos, floor plans (collectively, "lmages") or other information about the Property that has been or will be inputted into the MLS or internet portals, or both, at the instruction of Seller or in compliance with MLS rules, will not be removed after Close Of Escrow; (ii) California Civil Code $ 1088(c) requires the MLS to maintain such lmages and information for at least three years and as a result they may be displayed or circulated on the lnternet, which cannot be controlled or removed by Seller or Agents; and (iii) Seller, Seller's Agent, Buyer's Agent, and MLS have no obligation or ability to remove such lmages or information from the lnternet.

22. ATTORNEY FEES AND COSTS: ln any action, proceeding, or arbitration between Buyer and Seller arising out of this Agreement, the prevailing Buyer or Seller shall be entitled to reasonable attorney fees and costs from the non-prevailing Buyer or Seller, except GALTFORNTA RESTDENTIAL PURCHASE AGREEMENT AND JOTNT ESCROW TNSTRUCTTONS (RPA PAGE 12 OF 16) ProducedwithLoneWolfTransactions(zipFormEdition)7l7NHamoodSt,Suile2200,Dallas,TX 75201 M.lwolf.com CA93535 Date: April29,2022
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D. "As-ls" condition: Seller shall disclose known material facts and defects as specified in this Agreement. Buyer has the right to inspect the Property and, within the time specified, request that Seller make repairs or take other corrective action, or exercise any contingency cancellation rights in this Agreement. Seller is only required to make repairs specified in this Agreement or as Otherwise Agreed.

E. "Authorized Agent" means an individual real estate licensee specified in the Real Estate Broker Section.

F. "C.A.R. Form" means the most current version of the specific form referenced or another comparable form agreed to by the Parties.

G. "Close Of Escrow", including 'COE', means the date the grant deed, or other evidence of transfer of title, is recorded for any real property, or the date of Delivery of a document evidencing the transfer of title for any non-real property transaction.

H. "Copy" means copy by any means including photocopy, facsimile and electronic. l. Counting Days is done as follows unless Otherwise Agreed: (1) The first Day after an event is the first full calendar date following the event, and ending at 11:59 pm. For example, if a Notice to Buyer to Perform (C.A.R. form NBP) is Delivered at 3 pm on the 7th calendar day of the month, or Acceptance of a counter offer is personally received at'12 noon on the 7th calendar day of the month, then the 7th is Day "0" for purposes of counting days to respond to the NBP or calculating the Close Of Escrow date or contingency removal dates and the 8th of the month is Day I for those same purposes. (2) All calendar days are counted in establishing the first Day after an event. (3) All calendar days are counted in determining the date upon which performance must be completed, ending at 11:59 pm on the last day for performance ("Scheduled Performance Day"). (a) After Acceptance, if the Scheduled Performance Day for any act required by this Agreement, including Close Of Escrow, lands on a Saturday, Sunday, or legal holiday, the performing party shall be allowed to perform on the next day that is not a Saturday, Sunday or legal holiday ("Allowable Performance Day"), and ending at 11:59 pm. (5) For the purposes of COE, any day that the Recorder's office in the County where the Property is located is closed, the COE shall occur on the next day the Recorder's office in that County is open. (6) COE is considered Day 0 for purposes of counting days Seller is allowed to remain in possession, if permitted by this Agreement.

J. "Day" or "Days" means calendar day or days. However, delivery of deposit to escrow is based on business days.

K. "Deliver", "Delivered" or "Delivery" of documents, unless Otherwise Agreed, means and shall be effective upon personal receipt of the document by Buyer or Seller or their Authorized Agent. Personal receipt means (i) a Copy of the document, or as applicable, link to the document, is in the possession of the Party or Authorized Agent, regardless of the Delivery method used (i.e. e-mail, text, other), or (ii) an Electronic Copy of the document, or as applicable, link to the document, has been sent to any of the designated electronic delivery addresses specified in the Real Estate Broker Section on page 16. After Acceptance, Agent may change the designated electronic delivery address for that Agent by, in writing, Delivering notice of the change in designated electronic delivery address to the other Party. Links could be, for example, to DropBox or GoogleDrive or other functionally equivalent program. lf the recipient of a link is unable or unwilling to open the link or download the documents or otherwise prefers Delivery of the documents directly, Recipient of a link shall notify the sender in writing, within 3 Days after Delivery of the link (C.A.R. Form RFR). ln such case, Delivery shall be effective upon Delivery of the documents and not the link. Failure to notify sender within the time specified above shall be deemed consent to receive, and Buyer opening, the document by link.

L. "Electronic Copy" or "Electronic Signature" means, as applicable, an electronic copy or signature complying with California Law. Buyer and Seller agree that electronic means will not be used by either Party to modify or alter the content or integrity of this Agreement without the knowledge and consent of the other Party.

M. "Law" means any law, code, statute, ordinance, regulation, rule or order, which is adopted by a controlling city, county, state or federal legislative, judicial or executive body or agency.

N. "Legally Authorized Signer" means an individual who has authority to Sign for the principal as specified in paragraph 32 or paragraph 33.

O. "Otheruvise Agreed" means an agreement in wdting, signed by both Parties and Delivered to each.

P. "Repairs" means any repairs (including pest control), alterations, replacements, modifications or retrofitting of the Property provided for under this Agreement.

O. "Sign" or "Signed" means either a handwritten or Electronic Signature on an original document, Copy or any counterpart.

26. TERMS AND CONDITIONS OF OFFER: This is an offer to purchase the Property on the terms and conditions herein. The individual Liquidated Damages and Arbitration of Disputes paragraphs are incorporated in this Agreement if initialed by all Parties or if incorporated by mutual agreement in a Counter Offer or addendum. lf at least one but not all Parties initial, a Counter Offer is required until agreement is reached. Seller has the right to continue to offer the Property for sale and to accept any other offer at any time prior to notification of Acceptance and to market the Property for backup offers after Acceptance. The Parties have read and acknowledge receipt of a Copy of the offer and agree to the confirmation of agency relationships. lf this offer is accepted and Buyer subsequently defaults, Buyer may be responsible for payment of Brokers' compensation. This Agreement and any supplement, addendum or modification, including any Copy, may be Signed in two or more counterparts, all of which shall constitute one and the same writing. By signing this offer or any document in the transaction, the Party Signing the document is deemed to have read the document in its entirety.

27. TIME OF ESSENCE; ENTIRE GONTRACT; CHANGES: Time is of the essence. All understandings between the Parties are incorporated in this Agreement. lts terms are intended by the Parties as a final, complete and exclusive expression of their GALTFORNTA RESTDENTTAL PURCHASE AGREEMENT AND JO|NT ESCROW TNSTRUCTTONS (RpA PAGE 13 OF 16) ProducedwithLoneWotfTransactions(zipFomEdition)717NHaNoodSt,Suite2200,Dallas,TX75201 w.lwolf.6m CA93535 g agreement between
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30. MEDIATION:

A. The Parties agree to mediate any dispute or claim arising between them out of this Agreement, or any resulting transaction, before resorting to arbitration or court action. The mediation shall be conducted through the C.A.R. Real Estate Mediation Center for Consumers (www.consumermediation.org) or through any other mediation provider or service mutually agreed to by the Parties.

The Parties also agree to mediate any disputes or claims with Agents(s), who, in writing, agree to such mediation prior to, or within a reasonable time after, the dispute or claim is presented to the Agent. Mediation fees, if any, shall be divided equally among the Parties involved, and shall be recoverable under the prevailing party attorney fees clause. lf, for any dispute or claim to which this paragraph applies, any Party (i) commences an action without first attempting to resolve the matter through mediation, or (ii) before commencement of an action, refuses to mediate after a request has been made, then that Party shall not be entitled to recover attorney fees, even if they would otherwise be available to that Party in any such action. THIS MEDIATION PROVISION APPLIES WHETHER OR NOT THE ARBITRATION PROVISION IS INITIALED.

B. ADDITIONAL MEDIATION TERMS: (i) Exclusions from this mediation agreement are specified in paragraph 31B; (ii) The obligation to mediate does not preclude the right of either Party to seek a preservation of rights under paragraph 31G; and (iii) Agent's rights and obligations are further specified in paragraph 31D. These terms apply even if the Arbitration of Disputes paragraph is not initialed.

RPA12t21(PAGE 14 OF 16) Buyer's lnitials Sellefs lnitials CALTFORNTA RESTDENTTAL PURCHASE AGREEMENT AND JO|NT ESCROW TNSTRUCTTONS (RpA PAGE 14 OF 16) Produced with Lone Wolf Transactions (zipForm Edition) 717 N Haruood St, Suile 2200, Dallas, TX 75201 w.lwolf.com CA 93535 eq

29. LIQUIDATED DAMAGES (By initialing in the space below, you are agreeing to Liquidated Damages):
lf Buyer fails to complete this purchase because of Buyer's default, Seller shall retain, as liquidated damages, the deposit actually paid. lf the Property is a dwelling with no more than four units, one of which Buyer intends to occupy, then the amount retained shall be no more than 3% of the purchase price. Any excess shall be returned to Buyer. Release of funds will require mutual, Signed release instructions from both Buyer and Seller, judicial decision or arbitration award. AT THE TIME OF ANY INCREASED DEPOSIT BUYER AND SELLER SHALL SIGN A SEPABI\TE.LIQUIDATED DAMAGES PROVISION INCORPORATING THE INCREASED DEposrr As LTQUTDATEil:1pq1,:.A.*. FoRM DrD).

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31. ARBITRATION OF DISPUTES:

A. The Parties agree that any dispute or claim in Law or equity arising between them out of this Agreement or any resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration. The Parties also agree to arbitrate any disputes or claims with Agents(s), who, in writing, agree to such arbitration prior to, or within a reasonable time after, the dispute or claim is presented to the Agent. The arbitration shall be conducted through any arbitration provider or service mutually agreed to by the Parties, OR n The arbitrator shall be a retired judge or justice, or an attorney with at least 5 years of residential real estate Law experience, unless the Parties mutually agree to a different arbitrator.

Enforcement of, and any motion to compel arbitration pursuant to, this agreement to arbitrate shall be governed by the procedural rules of the Federal Arbitration Act, and not the California Arbitration Act, notwithstanding any language seemingly to the contrary in this Agreement. The Parties shall have the right to discovery in accordance with Gode of Civil Procedure S 1283.05. The arbitration shall be conducted in accordance with Title 9 of Part 3 of the Code of Civil Procedure. Judgment upon the award of the arbitrator(s) may be entered into any court having jurisdiction.

B. EXCLUSIONS: The following matters are excluded from mediation and arbitration: (i) Any matter that is within the jurisdiction of a probate, small claims or bankruptcy court; (ii) an unlawful detainer action; and (iii) a judicial or non- judicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage or installment land sale contract as defined in Civil Code $ 2985.

C. PRESERVATION OF ACTIONS: The following shall not constitute a waiver nor violation of the mediation and arbitration provisions: (i) the filing of a court action to preserve a statute of limitations; (ii) the filing of a court action to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, or other provisional remedies; or (iii) the filing of a mechanic's lien.

D. AGENTS: Agents shall not be obligated nor compelled to mediate or arbitrate unless they agree to do so in writing.

Any Agents(s) participating in mediation or arbitration shall not be deemed a party to this Agreement.

E. "NOTICE: BY INITIALING lN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING

OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION DECIDED BY

NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING

IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL,

UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU

MAY BE GOMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY.'' ..WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING

OUT OF THE MATTERS I
ARBITRATION."
Buyer's Initials

IN THE'ARBITRATION OF DISPUTES' PROVISION TO NEUTRALNCLUEED Vq) Seller's lnitials
Authenr$rijuuBitf DA8utet5P'4u531%s5fflsFltlncaster; cn egsss Date'. April 29.2022

32. BUYER'S OFFER
A. EXPIRATION OF OFFER: This offer shall be deemed revoked and the deposit, if any, shall be returned to Buyer unless by the date and time specified in paragraph 3G, the offer is Signed by Seller and a Copy of the Signed offer is Delivered to Buyer or Buyer's Authorized Agent. Seller has no obligation to respond to an offer made.

B. ! eruftfV BUYERS: (Note: lf this paragraph is completed, a Representative Capacity Signature Disclosure (C.A.R.

Form RCSD) is not required for the Legally Authorized Signers designated below.) (1) One or more Buyers is a trust, corporation, LLC, probate estate, partnership, holding a power of attorney or other entity. (2) This Agreement is being Signed by a Legally Authorized Signer in a representative capacity and not in an individual capacity. See paragraph 28 for additional terms.
(3) The name(s) of the Legally Authorized Signe(s) is/are: _(a) lf a trust, identifiy Buyer as trustee(s) of the trust or by simplified trust name (ex. John Doe, co-trustee, Jane Doe, co-trustee or Doe Revocable Family Trust). lf the entity is a trust or under probate, the following is the full name of the trust or probate case, including case #:

C. The RPA has 16 pages. Buyer acknowledges receipt of, and has read and understands, every page and all attachments that make up the Agreement.

D. BUYER
(Signature) By, Date: 05t03t2022
Printed
I erinteO Name of Legally Authorized Signer: Title, if applicable, Date:(Signature) By,
Printed name of BUYER:
! erinteO name of Legally Authorized Signer: Title, if applicable, ! tr vone THAN TWo SIGNERS, USE Additional signature Addendum (c.A.R. Form ASA).

33. ACCEPTANCE
A. ACCEPTANCE OF OFFER: Seller warrants that Seller is the owner of the Property or has the authority to execute this Agreement. Seller accepts the above offer and agrees to sell the Property on the above terms and conditions. Seller has read and acknowledges receipt of a Copy of this Agreement and authorizes Agent to Deliver a Signed Copy to Buyer.

Seller's acceptance is subject to the attached Counter Offer or Back-Up Offer Addendum, or both, checked below.

Seller shall return and include the entire agreement with any response.

Seller Counter Offer (C.A.R. Form SCO or SMCO)
Back-Up Offer Addendum (C.A.R. Form BUO)
B. ! entlty Sellers: (Note: lf this paragraph is completed, a Representative Gapacity Signature Disclosure form (C.A.R.

Form RCSD) is not required for the Legally Authorized Signers designated below.) (1) One or more Sellers is a trust, corporation, LLC, probate eslate, partnership, holding a power of attorney or other entity. (2) This Agreement is being Signed by a Legally Authorized Signer in a representative capacity and not in an individual capacity. See paragraph 28 for additional terms.
(3) The name(s) of the Legally Authorized Signe(s) is/are: _(4) ll a trust, identify Seller as hustee(s) of the trust or by simplified trust name (ex. John Doe, co{rustee, Jane Doe, co-trustee or Doe Revocable Family Trust). lf the entity is a trust or under probate, the following is the full name of the trust or probate case, including case #:

C. The RPA has 16 pages. Seller acknowledges receipt of, and has read and understands, every page and all attachments that make up the Agreement.

D. SELLERSTGNATURE(S):
(Signature) By, Date:

Printed name of SELLER:
! erinteO Name of Legally Authorized Signer: Title, if applicable, Date:(Signature) By,
Printed name of SELLER:
! erinteO Name of Legally Authorized Signer: Title, if applicable, ! tr vonr THAN TWo sIGNERS, USE Additional Signature Addendum (c.A.R. Form ASA).

RPA 12121 (PAGE 15 OF 16) Buyer's lnitials Seller's lnitials CALIFORNTA RESIDENTTAL PURCHASE AGREEMENT AND JOTNT ESCROW TNSTRUCTTONS (RpA PAGE 15 OF 16) Produced with Lone Wolf Transactions (zipForm Edition) 717 N HaMood St, Suite 2200, Dallas, TX 75201 M.lwolf.com CA 93535 eq
OFFER NOT AGCEPTED: / No Counter Offer is being made. This offer was not accepted by Seller (date) Seller's lnitials
Authen$ri{uHBitf DA8ff Feg8l1553l6E8511ltE0t}ncasrer, cn e3535 Dale: April29,2022 PRESENTATION OF OFFER: Seller's Brokerage Firm presented this offer to Seller on (date) Agent or Seller lnitials
O 2021, California Association of REALTORS@, lnc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS@, NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS@. lt is not intended to identify the user as a REALTOR@. REALTOR@ is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS@ who subscribe to its Code of Ethics.

Published and Distributed by:

REAL ESTATE BUSINESS SERVICES, LLC.
a subsidiary of the CALIFORNIA ASSOC/AIION OFREATIORS@
525 South Virgil Avenue, Los Angeles, California 90020
RPA12|21(PAGE 16 OF 16) Buyer's lnitials Seller's lnitials GALIFORNIA RESTDENTTAL PURCHASE AGREEMENT AND JO|NT ESCROW TNSTRUCTTONS (RpA PAGE 16 OF 16) ProducedwithLoneWolfTransactions(zipFormEdition)717NHaMoodSt,Suile2200,Dallas,TX 75201 M.lwolf.com CA93535 @
REAL ESTATE BROKERS SECTION:

1. Real Estate Agents are not parties to the Agreement between Buyer and Seller.

2. Agency relationships are confirmed as stated in paragraph 2.

3. Cooperating Broker Compensation: Seller's Broker agrees to pay Buyer's Broker and Buyer's Broker agrees to accept, out of Seller's Broker's proceeds in escrow, the amount specified in the MLS, provided Buyer's Broker is a Participant of the MLS in which the Property is offered for sale or a reciprocal MLS. lf Seller's Broker and Buyer's Broker are not both Participants of the MLS, or a reciprocal MLS, in which the Property is offered for sale, then compensation must be specified in a separate written agreement (C.A.R. Form CBC). Declaration of License and Tax (C.A.R. Form DLT) may be used to document that tax reporting will be required or that an exemption exists.

4. Presentation of Offer: Pursuant to the National Association of REALTORS@ Standard of Practice '1-7, if Buyer's Agent makes a written request, Seller's Agent shall confirm in writing that this offer has been presented to Seller.

5. Agents'Signatures and designated electronic delivery address:

A.B Firm HomeDash Realtv Lic. # 02131714
By Lic. # 01954276 Date 05t03t2022
By 51312022 t1 :11 :08 AM PDT Lic. # Date
More than one agent from the same firm represents Buyer. Additional Agent Acknowledgement (C.A.R. Form AAA) attached More than one brokerage firm represents Buyer. Additional Broker Acknowledgement (C.A.R. Form ABA) attached.

Designated Electronic Delivery Address(es)
Email Text #
Alternate
if checked, Delivery shall be made to the alternate designated electronic delivery address only Address City State _ Zip _
B. Seller's Brokerage Firm Coldwell Banker-A Hartwig Co Lic. # 00450461 By Dennis Greer Lic. # 00758955 Dale
By Lic. # Date
More than one agent from the same firm represents Seller. Additional Agent Acknowledgement (C.A.R. Form AAA) attached.

More than one brokerage firm represents Seller. Additional Broker Acknowledgement (C.A.R. Form ABA) attached.

Designated Electronic Delivery Address(es) (To be filled out by Selleis Agent):

Email Text #
Alternate
n if checked, Delivery shall be made to the alternate designated electronic delivery address only Address City State _ Zip
ESGROW HOLDER ACKNOWLEDGMENT:

EscrowHolderacknowledgesreceiptofaCopyofthisAgreement,(ifchecked,nadepositintheamountof$-),Counter Offernumbers and _, and agrees to act as Escrow Holder subject to paragraph 19 of this Agreement, any supplemental escrow instructions and the terms of Escrow Holder's general provisions.

Escrow Holder is advised by that the date of Acceptance of the Agreement is Escrow Holder Seller's Choice Escrow #
By Date
Address
Phone/Fax/E-mail
Escrow Holder has the following license number #
! Department of Financial Protection and lnnovation, ! Department of lnsurance, ! Department of Real Estate L
L
c
Authentisign B6-41'l 7-AB55-8F3494EF010'l

CALIFORNII

ASSOCIATION

OF RF,ALTORSO

BUYER'S INVESTIGATION ADVISORY
(C.A.R. Form BlA, Revised 12121)
Property Address 45534 E sth St, Lancaster, CA 93535

1. IMPORTANCE OF PROPERTY INVESTIGATION: The physical condition of the land and improvements being purchased is not guaranteed by either Seller or Brokers. You have an affirmative duty to exercise reasonable care to protect yourself, including discovery of the legal, practical and technical implications of disclosed facts, and the investigation and verification of information and facts that you know or that are within your diligent attention and observation. A general physical inspection typically does not cover all aspects of the Property nor items affecting the Property that are not physically located on the Property. lf the professionals recommend further investigations, including a recommendation by a pest control operator to inspect inaccessible areas of the Property, you should contact qualified experts to conduct such additional investigations.

2. BROKER OBLIGATIONS: Brokers do not have expertise in all areas and therefore cannot advise you on many items, such as those listed below. lf Broker gives you referrals to professionals, Broker does not guarantee their performance.

3. YOU ARE STRONGLY ADVISED TO INVESTIGATE THE CONDITION AND SUITABILITY OF ALL ASPECTS OF THE PROPERTY, INCLUDING BUT NOT LIMITED TO THE FOLLOWING. IF YOU DO NOT DO SO, YOU ARE ACTING AGAINST THE ADVICE OF BROKERS.

A. GENERAL CONDITION OF THE PROPERTY, ITS SYSTEMS AND COMPONENTS: Foundation, roof (condition, age, leaks, useful life), plumbing, heating, air conditioning, electrical, mechanical, security, pool/spa (cracks, leaks, operation), other structural and non-structural systems and components, fixtures, built-in appliances, any personal property included in the sale, and energy efficiency of the Property.

B. SQUARE FOOTAGE, AGE, BOUNDARIES: Square footage, room dimensions, lot size, age of improvements and boundaries. Any numerical statements regarding these items are APPROXIMATIONS ONLY and have not been verified by Seller and cannot be verified by Brokers. Fences, hedges, walls, retaining walls and other barriers or markers do not necessarily identify true Property boundaries.

C. WOOD DESTROYING PESTS: Presence of, or conditions likely to lead to the presence of wood destroying pests and organisms.

D. SOIL STABILITY: Existence of fill or compacted soil, expansive or contracting soil, susceptibility to slippage, settling or movement, and the adequacy of drainage.

E. WATER AND UTILITIES; WELL SYSTEMS AND COMPONENTS; WASTE DISPOSAL: Water and utility availability, use restrictions and costs. Water quality, adequacy, condition, and performance of well systems and components. The type, size, adequacy, capacity and condition of sewer and septic systems and components, connection to sewer, and applicable fees.

F. ENVIRONMENTAL HAZARDS: Potential environmental hazards, including, but not limited to, asbestos, lead- based paint and other lead contamination, radon, methane, other gases, fuel oil or chemical storage tanks, contaminated soil or water, hazardous waste, waste disposal sites, electromagnetic fields, nuclear sources, and other substances, materials, products, or conditions (including mold (airborne, toxic or otherwise), fungus or similar contaminants).

G. EARTHQUAKES AND FLOODING: Susceptibility of the Property to earthquake/seismic hazards and propensity of the Property to flood.

H. FIRE, HAZARD, AND OTHER INSURANCE: The availability and cost of necessary or desired insurance may vary.

The location of the Property in a seismic, flood or fire hazard zone, and other conditions, such as the age of the Property and the claims history of the Property and Buyer, may affect the availability and need for certain types of insurance. Buyer should explore insurance options early as this information may affect other decisions, including the removal of loan and inspection contingencies.
l. BUILDING PERMITS, ZONING, GOVERNMENTAL REQUIREMENTS, AND ADDRESS: Permits, inspections, certificates, zoning, other governmental limitations, restrictions, and requirements affecting the current or future use of the Property, its development or size. Postal/mailing address and zip code may not accurately reflect the city which has jurisdiction over the property.

J. RENTAL PROPERW RESTRICTIONS: The State, some counties, and some cities impose restrictions that limit the amount of rent that can be charged, the maximum number of occupants, and the right of a landlord to terminate a tenancy. Deadbolt or other locks and security systems for doors and windows, including window bars, should be examined to determine whether they satisfu legal requirements.

K. SECURITY AND SAFETY: State and local Law may require the installation of barriers, access alarms, self- latching mechanisms and/or other measures to decrease the risk to children and other persons of existing swimming pools and hot tubs, as well as various fire safety and other measures concerning other features of the Property.
@ 2021, California Association of REALTORS@, lnc.

BtA REVTSED 12t21 (PASE 1 OF 2)
BUYER'S I NVESTIGATION ADVISORY BIA PAGE 1 OF
HomeDash ReNlty,3?05 W Pico Blvd Ste 800 Los Angeles CA 90019 Phone:

Endy Lira Produced with Lone WolfTransactions (zipForm Edition) 717 N Haruood St, Suite 2200, (310) 901s999 Fax:

Dallas, TX 75201 w.lwolf.com
cA 93535
Authentisign lD: 4EOFD61 F-91 86-
L. NEIGHBORHOOD, AREA, SUBDIVISION CONDITIONS; PERSONAL FAGTORS: Neighborhood or area conditions, including schools, law enforcement, crime statistics, registered felons or offenders, fire protection, other government services, availability, adequacy and cost of internet connections or other technology services and installations, commercial, industrial or agricultural activities, existing and proposed transportation, construction and development that may affect noise, view, or traffic, airport noise, noise or odor from any source, wild and domestic animals, other nuisances, hazards, or circumstances, protected species, wetland properties, botanical diseases, historic or other governmentally protected sites or improvements, cemeteries, facilities and condition of common areas of common interest subdivisions, and possible lack of compliance with any governing documents or Homeowners' Association requirements, conditions and influences of significance to certain cultures and/or religions, and personal needs, requirements and preferences of Buyer.

By signing below, Buyers acknowledge that they have read, understand, accept and have received a Copy of this Advisorv. Buyers€re encouraged to read it carefully.

I
Buyer I Odrdan esdiali Adrian Godiati Dare 05t03t2022
L u, r, ror, r :og-ss nli p or
Buyer Date
@ 2Q21, California Association of REALTORS@, lnc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS@. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS@. lt is not intended to identify the user as a REALTOR@. REALTOR@ is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS@ who subscribe to its Code of Ethics.

Published and Distributed by:

REAL ESTATE BUSINESS SERVICES, LLC.
a suhsidiary of the CALIFORNIA ASSOC/AZON OF REALIORS@
525 South Virgil Avenue, Los Angeles, California 90020
BIA REVISED 12t21 (PAGE 2 OF 2l
BUYER'S |NVEST|GAT|ON ADV|SORY (BtA PAGE 2 OF 2l
Produced with Lone Wolf Transactions (zipForm Edition) 717 N Haruood St, Suite 2200, Dallas, TX 75201 w.kolf.com cA 93535 Authentisign lD: B6-41 I 7-AB65-8F3494EF0'r 01

CALIFORNIA
ASSOClATION

OF REALTORSO
l/we acknowledge receipt of
B uyer/Sel ler/Land lord/Ten ant
The California Consumer Privacy Act (commencing with Civil Code S 1798.100) ("CCPA') grants to California residents certain rights in their private, personal information ("P1") that is collected by companies with whom they do business.

Under the CCPA, Pl is defined broadly to encompass non-public records information that could reasonably be linked directly or indirectly to you. Pl could potentially include photographs of, or sales information about, your property.

During the process of buying and selling real estate your Pl will be collected and likely shared with others, including real estate licensees, a Multiple Listing Service, real estate internet websites, service providers, lenders, and title and escrow companies, to name several possibilities. Businesses that are covered by the CCPA are required to grant you various rights in your Pl, including the right to know what Pl is collected, "opt out" or stop the transfer of your Pl to others, and the right to request that the business delete your Pl entirely. You may get one or more notices regarding your CCPA rights from businesses you interact with in a real estate transaction. However, not all businesses that receive or share your Pl are obligated to comply with the CCPA. Also, even businesses that are otherwise covered under the CCPA may have a legal obligation to maintain Pl, notwithstanding your instruction to the contrary. For instance, regardless of whether they are covered by CCPA, under California law, brokers and Multiple Listing Services are required to maintain their records for 3 years. lf you wish to exercise your rights under CCPA, where applicable, you should contact the respective business directly.

You can obtain more information about the CCPA and your rights under the law from the State of California Department of Justice (oag.ca.gov/privacy/ccpa).

CALIFORNIA CONSUMER PRIVACY ACT ADVISORY,

DISCLOSURE AND NOTICE
(C.A.R. Form GGPA, Revised 12121)
1"ifilL,irl,llis Galifornia Consumer Privacy Act Advisory, Disclosure and Notice.

I AArrn, eod,fuili Date osrcsnozz
'Mdemgqc6!6a AM PDT
B uyer/Sel ler/Lan d lord/Tenant Date
@ 2O21, Calilornia Association of REALTORS@, lnc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or compuierized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS@. NO REPRESENTATION IS IVADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS@. lt is not intended to identify the user as a REALTOR@. REALTOR@ is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS@ who subscribe to its Code of Elhics.

Published and Dishibuted by:

REAL ESTATE BUSINESS SERVICES, LLC.
a subsidiary of the CALIFORNIA ASSOC/AIION OF REALTORS@ 525 South Virgil Avenue, Los Angeles, California 90020
ccPA REVTSED 12t21(PASE 1 OF 1)
A
HomeDash Realty,3705 W Pico Blvd Stc 800 t,os Angcles CA 90019 Phoner (310) 905-5999 Endy Lira Produced wilh Lone Wolf Transactions (zipForm Edition) 717 N Haruood St, Suite 2200, Dallas, TX 75201 Fax:
wwwlwolf.com
cA 93535
CALIFORNIA CONSUMER PRIVACY ACT ADVISORY CPA PAGE 1 OF 1

STAFF REPORT
City of Lancaster
California Choice Energy Authority
Date: June 14, 2022
To: Mayor Parris and City Council Members
From: Jason Caudle, City Manager
George Harris, Director of Finance
Subject:Review the Proposed Fiscal Year 2022-2023 Budgets and Five-Year Capital Improvement Program and conduct the Public Hearing
City Council Recommendation:

City Council and City Council acting as Lancaster Housing Authority, Lancaster Choice Energy, and Lancaster Power Authority conduct the public hearing and direct staff to schedule the Proposed the Fiscal Year 2022-2023 Budget and Five-Year Capital Improvement Plan (CIP) adoption for June 28, 2022.

California Choice Energy Authority (CCEA) Board Recommendation:

Conduct the public hearing and direct City of Lancaster staff to schedule the CCEA Proposed the Fiscal Year 2022-2023 Budget adoption for June 28, 2022.

Fiscal Impact:

The City of Lancaster Proposed Fiscal Year 2022-2023 Budget and Five-Year CIP totals $262.7 million, including $44.4 million for the Capital Improvement Program (CIP).

Background:

City of Lancaster Budget
By July 1 of each year, the City is required to adopt a budget, which establishes appropriations and estimates revenue for the coming fiscal year. The proposed budget is a culmination of many months of work by the City Council and staff in reviewing priorities and evaluating programs, with a focus on maintaining responsive and relevant services for residents.

City Council’s priorities address:
Sound fiscal foundation and resilience;
Protect city infrastructure;
Public safety;
Measure LC appropriations;
Economic development; and
New facilities, programs, and services
have been incorporated into the City’s Proposed FY 2022-2023 Budget.

JPH 2
06/14/22
JC
The following table summarizes the proposed citywide budget:

Expenditures by Category
FY 23 Proposed
Budget
Personnel $50.1 M
Operations, Capital Outlay, & Maintenance 168.2 Capital Projects 44.4
TOTAL $262.7 M
Estimating revenues for the upcoming fiscal year and forecasting out-years is essential. By reviewing past years’ actual revenue receipts, new revenue sources, fee-based program and service projections, grant opportunities, and the State’s economic outlook, the City can best determine the revenues available for spending allocations. The City estimated FY 2022-2023 revenues of $324.4 million.

The City’s largest unrestricted funding source is the General Fund, totaling $109.7 million, including transfers in. General Fund resources include property tax, sales tax, fees, grants, and others. Sales and Use tax is the top General Fund source, which is projected at $28.4 million.

The proposed General Fund appropriations total $128.0 million, including $19.5 million for the Capital Improvement Program (CIP) and $1.2 million in transfers out. The recently approved Measure LC budgeted to generate $21.5 million in revenue.

The City of Lancaster desires to maintain a prudent level of financial resources to guard its residents against service disruption in the event of unexpected, temporary revenue shortfalls or unanticipated expenditures. Reserves accumulated during years when revenues exceeded expenditures cushion the City’s transition to a lower revenue base and allow the City to adjust spending in response to economic downturns, emergencies, State revenue takeaways, and/or investment opportunities. The Proposed FY 2022-2023 Budget significantly recognizes and strengthens the City Council’s fiscal prudence and discipline priority with reserves totaling approximately 40%.

To continue transforming the City, we must continue focusing on the infrastructure in the City; we accomplish this through our Capital Improvement Program (CIP). We are persistent in our aggressive, proactive approach to allocating more capital improvement funding. The CIP for the Proposed FY 2022-2023 Budget totals $44.4 million.

The Proposed FY 2022-2023 Budget addresses community needs while maintaining healthy Reserves that will enable the City to continue providing the community with a full scope of high- quality municipal services, programs, and special events that enhance the quality of life of all Lancaster residents. It will also provide the required resources to construct significant capital improvement projects that will improve infrastructure and facilities and beautify the community.

California Choice Energy Authority Budget
The California Choice Energy Authority is a Joint Powers Authority (JPA) comprised of member municipalities. Formed in 2012, the CCEA provides its member’s economies of scale to support the activities of each Community Choice Aggregate. CCEA initiatives remain in providing long- term sustainable energy and cost containment for member Community Choice Aggregates.

The CCEA Proposed FY 2022-2023 Budget totals $8.7 million. The CCEA Proposed Budget projects an ending reserve totaling $0.2 million by the end of FY 2022-2023.

The City’s Proposed Fiscal Year 2022-2023 Budget and Five-Year Capital Improvement Plan and CCEA’s Proposed Fiscal Year 2022-2023 Budget will be presented to the City Council Board for final adoption on June 28, 2022.

JC: GH
Attachments:

City of Lancaster Proposed Fiscal Year 2022-2023 Budget CCEA Proposed Fiscal Year 2022-2023
6/8/2022
Citywide Budget Summary
Where the Revenue Comes From
Values
Category FY21 Actuals
FY22 Controlled
Budget
FY23 Proposed
Revenue
Taxes 60,977,060           78,020,695          81,023,619 Lancaster Choice Energy 46,576,989           44,378,806          60,511,745 Measure R Funds 7,305,716              39,869,650          20,417,608 TDA Article 8 7,727,738              15,179,265          20,300,130 Reimbursement From Other Funds 9,368,525              14,504,791          19,150,086 Federal Misc. Grants 4,069,203              3,509,040             18,082,874 Proposition C Fund 2,777,768              2,877,837             15,891,544 Proposition A Fund 3,312,644              3,520,618             11,707,698 Misc. State Grant Fund 4,623,545              6,515,217             10,238,471 Charges For Current Service 11,011,220           10,056,805          10,055,905 Measure M Funds 2,329,910              3,056,591             9,756,617 Gas Tax Fund 5,841,658              7,756,707             8,327,531 Lighting Maintenance District Fund 5,573,992              4,520,700             4,520,000 Sewer Maintenance Fund 4,584,509              4,275,456             4,230,500 Development Fees 3,350,467              3,234,000             3,084,000 MTA Grant ‐ Prop C 806,794                 4,101,603             2,723,811 Lancaster Housing Authority ‐ Successor 699,947                 885,220                1,975,253 Community Development Block Grant Fund 1,755,630              1,572,221             1,918,931 Parks, Recreation & Arts Revenue 695,279                 2,495,000             1,918,408 Landscape Maintenance District Fund 1,970,155              1,757,000             1,765,700 LA County Reimbursement Fund 386,801                 3,652,903             1,702,497 Drainage Maintenance District Fund 1,995,866              1,695,000             1,695,000 Lancaster Power Authority 1,896,981              1,500,000             1,500,000 Licenses & Permits 1,336,878              1,405,737             1,425,339 Home Grant Fund (238,841)                700,752                1,372,033 MTA Grant ‐ STPL Fund 513,261                 721,536                1,186,184 Measure A Funds 524,776                 623,040                1,091,700 Grants 682,443                 1,020,020             1,020,020 Use of Money & Property 1,920,190              869,825                881,281 Lancaster Performing Arts Center 20,326                   918,600                857,734 Fines & Forfeitures 550,007                 661,690                661,690 Other Revenues 17,527,777           20,215,801          482,000 Drainage Impact Fee Fund 7,646,451              450,000                450,000 TDA Article 3 Bikeway Fund 261,216                 389,361                429,841 Finance Authority 53,323                   400,160                400,160 Biological Impact Fee Fund 42,111                   260,000                300,000 Traffic Impact Fee Fund 812,589                 100,000                300,000 Traffic Safety Fund 167,197                 260,000                260,000 Revenue From Other Agencies 188,875                 177,902                170,000 Signal Impact Fee Fund 596,362                 160,000                160,000 Urban Structure Facilities Impact Fee Fund 1,132,698              110,000                110,000 Recycled Water Fund 164,190                 100,000                100,000 AB2766 Air Quality Improvement Fund 50,000                   99,810 State Recycling Grant Fund 100,360                 81,930                  98,977 Park Dwelling Unit Fee Fund 368,000                 40,000                  40,000 Used Oil Grant Fund 43,820                   40,773                  36,819 Still Meadow LN Sewer Assessment District 11,505                   11,000                  11,000 Urban Structure Yard Facilities Impact Fee Fund 27,545                   3,500                    3,500 Urban Structure Admin Facilities Impact Fee Fund 27,746                  3,500                    3,500 Proposition 1B 1,535
Grand Total 224,120,735         288,710,253        324,449,516 Taxes
25%
Lancaster Choice Energy
19%
Measure R Funds
6%
TDA Article 8
6%
Reimbursement From Other
Funds
6%
Federal Misc. Grants
6%
Proposition C Fund
5%
Proposition A Fund
4%
Misc. State Grant Fund
3%
Charges For Current Service
3%
Measure M Funds
3%
Gas Tax Fund
2%
All Other
12%
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Citywide Revenue Overview
Values
Fund Group FY21 Actuals
FY22 Controlled
Budget
FY23 Proposed
Revenue
General Fund 107,629,049         124,749,489        107,253,411 Devloper Fee Funds 10,653,501           1,127,000             1,367,000 Enterprise Funds 48,473,969           45,878,806          62,011,745 Finance Authority 53,323                   400,160                400,160 Internal Service Funds 8,831,377              13,476,671 Lancaster Housing Authority Funds 699,947                 885,220                1,975,253 Maintenance District Funds 14,124,522           12,248,156          12,211,200 Special Revenue Funds 42,486,425           94,590,044          125,754,076 Grand Total 224,120,735         288,710,253        324,449,516 $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $14 0 General Fund
Devloper Fee Funds
Enterprise Funds
Finance Authority
Internal Service Funds
ster Housing Authority Funds
Maintenance District Funds
Special Revenue Funds
Citywide ‐ All Funds
FY23 Proposed Revenue FY22 Controlled Budget FY21 Actuals H:\FY 21‐22 Budget\FY 2022 ‐ 2023 Budget Book\Citywide FY 2022‐2023 Revenue Review ‐ 06.07.22 Page 2 of 2 Row Labels FY21 Actuals
Year‐End
Estimate FY 2022
Proposed FY
2023
PERSONNEL COSTS 37,382,312           45,778,417          50,148,236 SHERIFF CONTRACT 26,088,590           26,381,595          26,381,595 OPERATING EXPENDITURES 99,752,215           142,362,891        138,527,468 CAPITAL OUTLAY and REPLACEMENTS 1,298,183             4,707,498            3,305,746 TRANSFERS OUT 12,142,643          28,451,549          21,689,436 CAPITAL IMPROVEMENTS 30,472,942           193,849,440        44,350,168 Total 195,197,709         441,531,390        284,402,649 Citywide Budget Summary
Where the Expenditures Go
‐
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
PERSONNEL COSTS SHERIFF CONTRACT OPERATING

EXPENDITURES
CAPITAL OUTLAY and

REPLACEMENTS
TRANSFERS OUT CAPITAL

IMPROVEMENTS
Where the Expenditures Go
FY21 Actuals Year‐End Estimate FY 2022 Proposed FY 2023 Excludes Transfers
Row Labels FY21 Actuals
Year‐End
Estimate FY 2022
Proposed FY
2023
PERSONNEL COSTS 37,382,312 45,778,417 50,148,236 OPERATING EXPENDITURES 125,840,805 168,744,486 164,909,063 CAPITAL OUTLAY and REPLACEMENTS 1,298,183 4,707,498 3,305,746 CAPITAL IMPROVEMENTS 30,472,942 193,849,440 44,350,168 Total 194,994,242 413,079,841 262,713,213 Excludes Transfers
Expenditures by Category
Percentage of Proposed FY 2023 Expenditures by
Category
19%
63%
1%
17%
PERSONNEL COSTS

OPERATING

EXPENDITURES
CAPITAL OUTLAY and

REPLACEMENTS

CAPITAL

IMPROVEMENTS
Excludes Transfers
Row Labels FY21 Actuals
Year‐End
Estimate FY 2022
Proposed FY
2023
City Manager's Office 10,097,905           15,454,540          16,483,661 Development Services 35,699,226           57,444,793          59,003,246 Finance 67,170,622           75,799,710          72,081,419 PARCS 17,085,817           30,875,611          27,944,666 Public Safety 34,467,731           39,655,747          42,850,053 Capital Improvements 30,472,942           193,849,440        44,350,168 Total 194,994,242         413,079,841        262,713,213 Excludes Transfers
Expenditures by Department/Function
Percentage of Proposed FY 2023 Expenditures by
Department
6%
23%
27%
11%
16%
17%
City Manager's Office
Development Services
Finance
PARCS
Public Safety
Capital Improvements
6/8/2022 @ 1:08 PM
Values
FUND_GROUP FUND DESCRIPTION
FY22 Beginning
Fund Balance
FY22 Estimated
Revenue
FY22 Estimated
Expenditures
FY22 Estimated
Capital
FY22 Estimated
Operating
Transfers Out
FY22 Estimated
Operating
Transfers In
FY22 Estimated
Ending Fund
Balance FY23 Revenue
FY23
Expenditures FY23 Capital
FY23 Transfers
Out FY23 Transfers In
FY23 Calc Ending
Fund Balance
General Funds ‐ Spendable 101 GENERAL FUND 44,071,739           124,518,516        106,622,366        10,481,393          8,081,906            4,480,552            47,885,142          107,253,411        104,955,360        19,544,781          1,194,915            1,525,432            30,968,929 104 CAPITAL REPLACEMENT FUND 368,680                 ‐                         273,549                ‐                         ‐                         ‐                         95,131                  ‐                         254,923                ‐                         ‐                         159,792                ‐ 109 GENERAL FUND RESERVES 22,173,349           230,973                2,004,375            ‐                         2,550,354            651,307                18,500,900          ‐                         2,043,128            ‐                         ‐                         805,073                17,262,845 General Funds ‐ Spendable Total 66,613,768          124,749,489        108,900,290        10,481,393          10,632,260          5,131,859            66,481,173          107,253,411        107,253,411        19,544,781          1,194,915            2,490,297            48,231,774 General Funds ‐ Nonspendable NON NONSPENDABLE 29,059,449           ‐                         ‐                         ‐                         ‐                         ‐                         29,059,449          ‐                         ‐                         ‐                         ‐                         ‐                         29,059,449 General Funds ‐ Nonspendable Total 29,059,449           ‐                         ‐                         ‐                         ‐                         ‐                         29,059,449          ‐                         ‐                         ‐                         ‐                         ‐                         29,059,449 Internal Service Funds 111 FLEET MAINTENACE ‐                        2,661,147            3,062,514            ‐                         ‐                         995,609                594,242                3,792,579            3,740,974            ‐                         47,450                  ‐                         598,397 112 INFORMATION TECHNOLOGY ‐                        3,112,273            8,261,859            120,000                ‐                         5,255,190            (14,396)                 4,574,019            5,374,892            290,000                83,565                  1,174,851            (13,983) 113 GENERAL LIABILITY ‐                        3,057,957            4,373,600            ‐                         ‐                         1,774,643            459,000                5,110,073            4,729,649            ‐                         33,479                  619,017                1,424,962 Internal Service Funds Total ‐                        8,831,377            15,697,973          120,000                ‐                         8,025,442            1,038,846            13,476,671          13,845,515          290,000                164,494                1,793,868            2,009,376 Special Revenue Funds 203 GAS TAX 1,542,390             7,756,707            13,387,448          4,898,023            1,005,437            7,780,369            (2,211,442)           8,327,531            13,259,785          5,032,649            1,034,737            13,212,283          1,201 204 AQMD (39,252)                  50,000                  50,000                  ‐                         5,279                    ‐                         (44,531)                 99,810                  50,000                  ‐                         5,279                    ‐                         ‐ 205 PROP 1B 7,171                     ‐                         ‐                         395                       ‐                         ‐                         6,776                    ‐                         ‐                         ‐                         ‐                         ‐                         6,776 206 TDA ARTICLE 8 FUND (1,446,513)            15,179,265          15,000                  4,254,912            8,332,792            ‐                         1,130,047            20,300,130          15,000                  7,055,389            12,276,847          ‐                         2,082,941 207 PROP "A" TRANSIT FUND 32,719                   3,520,618            603,908                8,502,727            90,003                  ‐                         (5,643,301)           11,707,698          2,194,656            1,678,000            21,955                  ‐                         2,169,786 208 TDA ARTICLE 3 BIKEWAY FUND (1,638)                    389,361                10,189                  313,814                ‐                         ‐                         63,720                  429,841                10,189                  483,372                ‐                         ‐                         ‐ 209 PROPOSITION "C" FUND 45,924                   2,877,837            ‐                         8,432,412            ‐                         ‐                         (5,508,651)           15,891,544          ‐                         1,702,141            ‐                         ‐                         8,680,752 210 MEASURE R FUND 79,146                   39,869,650          1,500                    58,201,084          1,081,200            ‐                         (19,334,988)         20,417,608          1,500                    ‐                         1,081,120            ‐                         ‐ 211 MEASURE M 19,350                   3,056,591            560,855                3,077,162            2,130,282            ‐                         (2,692,358)           9,756,617            344,548                2,949,139            3,670,401            ‐                         100,171 212 MEASURE A ‐                        623,040                ‐                         ‐                         121,038                ‐                         502,002                1,091,700            ‐                         1,191,874            316,452                ‐                         85,376 248 TRAFFIC SAFETY FUND 117,567                 260,000                ‐                         ‐                         260,000                ‐                         117,567                260,000                ‐                         ‐                         260,000                ‐                         117,567 252 PROP 42 CONGESTION MANAGEMENT 46,543                  ‐                         ‐                         46,544                  ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐ 261 LOS ANGELES COUNTY REIMB (179,569)               3,652,903            3,730,153            ‐                         ‐                         ‐                         (256,819)              1,702,497            1,445,678            ‐                         ‐                         ‐                         ‐ 321 MTA GRANT ‐  LOCAL (324,509)               4,101,603            ‐                         4,539,159            ‐                         ‐                         (762,064)              2,723,811            ‐                         ‐                         ‐                         ‐                         1,961,747 323 STATE GRANT ‐ STPL (764,338)               721,536                ‐                         784,987                ‐                         ‐                         (827,789)              1,186,184            ‐                         ‐                         ‐                         ‐                         358,395 324 STATE GRANT ‐ OTS (0)                            ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐ 330 STATE GRANT RECYCLING 137,704                 81,930                  128,682                ‐                         28,584                  ‐                         62,368                  98,977                  126,003                ‐                         2,373                    ‐                         32,969 331 STATE GRANT ‐ OIL RECYCLING 3,324                     40,773                  17,783                  ‐                         5,277                    ‐                         21,037                  36,819                  57,856                  ‐                         ‐                         ‐                         ‐ 349 MISC STATE GRANTS (866,950)               6,515,217            1,694,996            10,873,426          ‐                         8,000                    (6,912,154)           10,238,471          2,599,057            727,260                ‐                         ‐                         ‐ 361 CDBG (439,414)               1,572,221            1,002,244            994,000                51,550                  ‐                         (914,987)              1,918,931            1,000,765            ‐                         3,163                    ‐                         16 362 CDBG ‐ SECTION 108 ‐                        ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐ 363 NBRHD STABILIZATION PRGM 2,635,953             ‐                         ‐                         ‐                         ‐                         ‐                         2,635,953            ‐                         ‐                         ‐                         ‐                         ‐                         2,635,953 391 LANCASTER HOME PROGRAM 605,443                 700,752                676,132                ‐                         1,037                    ‐                         629,026                1,372,033            676,132                ‐                         1,037                    ‐                         1,323,890 399 FEDERAL MISCELLANEOUS GRANTS (452,858)              3,509,040            3,071,849            14,995,358          ‐                         ‐                         (15,011,025)         18,082,874          3,071,849            ‐                         ‐                         ‐                         ‐ 456 STILL MEADOW LN SWR ASSMNT DST 12,527                  11,000                  ‐                         ‐                         11,000                  ‐                         12,527                  11,000                  ‐                         ‐                         11,000                  ‐                         12,527 485 RECYCLED WATER FUND 116,360                 100,000                290,487                ‐                         22,353                  99,858                  3,378                    100,000                278,924                ‐                         21,802                  197,375                27 Special Revenue Funds Total 887,081                94,590,044          25,241,226          119,914,002        13,145,832          7,888,227            (54,935,707)         125,754,076        25,131,942          20,819,824          18,706,166          13,409,658          19,570,095 Maintenance District Funds 480 SEWER MAINT FUND 3,089,254             4,275,456            4,560,140            166,765                538,198                ‐                         2,099,606            4,230,500            4,782,847            530,000                521,524                ‐                         495,735 482 LANDSCAPE MAINTENANCE DISTRICT 1,288,200            1,757,000            2,281,195            ‐                         270,392                ‐                         493,613                1,765,700            2,012,163            ‐                         267,314                20,240                  76 483 LIGHTING MAINTENANCE DISTRICT 3,358,735            4,520,700            4,534,195            170,975                136,693                ‐                         3,037,572            4,520,000            4,487,406            ‐                         138,440                ‐                         2,931,726 484 DRAINAGE MAINTENANCE DISTRICT 1,860,820            1,695,000            2,684,539            90,663                  211,180                ‐                         569,438                1,695,000            2,491,486            ‐                         195,672                422,941                221 Maintenance District Funds Total 9,597,008            12,248,156          14,060,069          428,403                1,156,463            ‐                         6,200,229            12,211,200          13,773,902          530,000                1,122,950            443,181                3,427,758 Developer Fee Funds 213 PARKS DEVELOPMENT FUND 760,004                 40,000                  ‐                         592,004                ‐                         ‐                         208,000                40,000                  ‐                         248,000                ‐                         ‐                         ‐ 217 SIGNALS ‐ DEVELOPER FEES FUND 2,366,530            160,000                ‐                         2,090,169            ‐                         ‐                         436,361                160,000                ‐                         500,000                ‐                         ‐                         96,361 220 DRAINAGE ‐ DEVELOPER FEES FUND 10,984,244          450,000                ‐                         4,237,794            ‐                         ‐                         7,196,450            450,000                ‐                         650,000                ‐                         ‐                         6,996,450 224 BIOLOGICAL IMPACT FEE FUND 640,061                 260,000                ‐                         98,918                  ‐                         ‐                         801,143                300,000                ‐                         ‐                         ‐                         ‐                         1,101,143 226 URBAN STRUCTURE PROGRAM ‐ OPERATIO 2,569                    ‐                         ‐                         2,569                    ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐ 227 URBAN STRUCTURE PROGRAM ‐ PARKS 1,870,172            110,000                ‐                         1,115,051            42,419                  ‐                         822,702                110,000                ‐                         890,220                42,482                  ‐                         ‐ 228 URBAN STRUCTURE PROGRAM ‐ ADMIN 55,437                  3,500                    ‐                         39,691                  ‐                         ‐                         19,246                  3,500                    ‐                         22,746                  ‐                         ‐                         ‐ 229 URBAN STRUCTURE PROGRAM ‐ CORP YARD 181,655                3,500                    ‐                         86,573                  ‐                         ‐                         98,582                  3,500                    ‐                         102,082                ‐                         ‐                         ‐ 230 MARIPOSA LILY FUND 62,733                   ‐                         ‐                         ‐                         ‐                         ‐                         62,733                  ‐                         ‐                         ‐                         ‐                         ‐                         62,733 232 TRAFFIC IMPACT FEES FUND 1,419,618             100,000                ‐                         1,147,029            ‐                         ‐                         372,590                300,000                ‐                         472,590                ‐                         ‐                         200,000 233 ZERO NET ENERGY (Solar) 106,700                 ‐                         ‐                         ‐                         ‐                         ‐                         106,700                ‐                         ‐                         ‐                         ‐                         ‐                         106,700 Developer Fee Funds Total 18,449,722          1,127,000            ‐                         9,409,797            42,419                  ‐                         10,124,506          1,367,000            ‐                         2,885,638            42,482                  ‐                         8,563,386 City of Lancaster ‐ Fund Balance Report
H:\FY 21‐22 Budget\FY 2022 ‐ 2023 Budget Book\
Fund Balances ‐ FY22 ‐ As of 06.07.22 Page 1 of 2
6/8/2022 @ 1:08 PM
Values
FUND_GROUP FUND DESCRIPTION
FY22 Beginning
Fund Balance
FY22 Estimated
Revenue
FY22 Estimated
Expenditures
FY22 Estimated
Capital
FY22 Estimated
Operating
Transfers Out
FY22 Estimated
Operating
Transfers In
FY22 Estimated
Ending Fund
Balance FY23 Revenue
FY23
Expenditures FY23 Capital
FY23 Transfers
Out FY23 Transfers In
FY23 Calc Ending
Fund Balance
City of Lancaster ‐ Fund Balance Report
Lancaster Housing Authority Funds 301 LANCASTER HOUSING AUTH. OPS. 1,862,660            ‐                         ‐                         ‐                         ‐                         ‐                         1,862,660            ‐                         ‐                         ‐                         ‐                         ‐                         1,862,660 306 LOW & MOD INCOME HOUSING 9,910,550             885,220                1,612,188            139,965                3,178,192            ‐                         5,865,425            1,975,253            1,703,117            ‐                         163,767                ‐                         5,973,794 Lancaster Housing Authority Funds Total 11,773,209           885,220                1,612,188            139,965                3,178,192            ‐                         7,728,085            1,975,253            1,703,117            ‐                         163,767                ‐                         7,836,454 Enterprise Funds 486 LANCASTER POWER AUTHORITY 1,210,410             1,500,000            1,507,781            ‐                         884                       ‐                         1,201,745            1,500,000            1,156,625            ‐                         884                       ‐                         1,544,236 490 LANCASTER CHOICE ENERGY 8,396,326             44,378,806          48,379,567          ‐                         295,499                3,854,641            7,954,707            60,511,745          51,946,102          ‐                         293,778                ‐                         16,226,572 Enterprise Funds Total 9,606,736            45,878,806          49,887,348          ‐                         296,383                3,854,641            9,156,452            62,011,745          53,102,727          ‐                         294,662                ‐                         17,770,808 Finance Authority 701 FINANCE AUTHORITY 58,611,372           400,160                3,831,306            53,355,879          ‐                         3,551,380            5,375,726            400,160                3,552,431            279,925                ‐                         3,552,432            5,495,962 Finance Authority Total 58,611,372          400,160                3,831,306            53,355,879          ‐                         3,551,380            5,375,726            400,160                3,552,431            279,925                ‐                         3,552,432            5,495,962 Grand Total 204,598,346        288,710,253        219,230,401        193,849,440        28,451,549          28,451,549          80,228,758          324,449,516        218,363,045        44,350,168          21,689,436          21,689,436          141,965,061

H:\FY 21‐22 Budget\FY 2022 ‐ 2023 Budget Book\
Fund Balances ‐ FY22 ‐ As of 06.07.22 Page 2 of 2
California Choice Energy Authority
Fiscal Year 2021/22 Adopted & Fiscal Year 2022/23 Proposed Budget FY 2021/22
Adopted Budget
FY 2021/22
Estimates as of
5/31/22
FY 2022/23
Proposed Budget
Administrative Service Agreements
Total Estimated Revenue
AVCE ASA Revenue 838,384$ 820,767$ 867,336$ BPROUD ASA Revenue 772,768$ 580,971$ -$ EPIC ASA Revenue -$ -$ 1,090,440$ LCE ASA Revenue 1,486,056$ 1,482,283$ 1,510,784$ PCE ASA Revenue 1,398,052$ 1,311,136$ 1,363,100$ PRIME ASA Revenue 684,612$ 652,664$ 686,188$ RMEA ASA Revenue 751,968$ 740,408$ 740,408$ SBCE ASA Revenue -$ 555,667$ 1,133,076$ SJP ASA Revenue 624,016$ 608,488$ 656,440$ Total Administrative Service Agreements 6,555,856$ 6,752,382$ 8,047,772$ Grant/Program Funds
GHG Grant Revenue -$ 87,378$ 779,801$ Total Grant/Program Funds -$ 87,378$ 779,801$ Interest Income 3,500$ 921$ 2,000$ Net Revenue Avail for Operating Expenditures 6,559,356$ 6,840,682$ 8,829,573$

OPERATING EXPENDITURES
CalChoice Operating Expenditures
CPUC workshops/Seminars/Travel 40,000$ 5,000$ 40,000$ Promotion & Advertising (Marketing) -$ -$ 100,785$ CalCCA Annual Seminar Sponsorship 5,000$ -$ -$ Semi-Annual Associate Member Meetin 10,000$ -$ -$ Other Marketing 10,000$ 7,121$ -$ Website Updates 10,000$ -$ -$ Other Sponsorships 3,500$ -$ -$ Tripepi Smith Contract 60,471$ 75,697$ -$ Publications & Dues -$ 279$ 4,556$ CalCCA 3,000$ -$ -$ California Special Districts Assoc 1,482$ 1,556$ -$ Office Supplies -$ -$ -$ Insurance Expense 35,000$ 42,292$ 35,000$ Summary for Staff Report Page 1 of 3
California Choice Energy Authority
Fiscal Year 2021/22 Adopted & Fiscal Year 2022/23 Proposed Budget FY 2021/22
Adopted Budget
FY 2021/22
Estimates as of
5/31/22
FY 2022/23
Proposed Budget
Professional Services -$ -$ 851,500$ CalChoice Admin & Mgmt 690,000$ 681,305$ -$ Lobbyist 78,000$ 78,000$ -$ Website 600$ 680$ -$ Grasshopper VOiP 500$ 641$ -$ Bank Fees -$ 1,784$ 1,400$ Software & Support -$ -$ 8,130$ DocuSign 900$ 1,092$ -$ Dropbox 960$ 1,200$ -$ QuickBooks 5,800$ 6,163$ -$ Microsoft Office 400$ 420$ -$ Nord VPN 70$ -$ -$ Legal Services - General & Procurement 150,000$ 119,186$ 100,000$ Legal Services - Regulatory 350,000$ 439,406$ 470,000$ Lancaster Administrative Overhead 144,285$ 144,285$ 144,285$ Total CalChoice Operating Expenditures 1,599,968$ 1,606,108$ 1,755,656$ ASA Expenditures
AVCE ASA Expenditures 656,678$ 690,900$ 715,524$ BPROUD ASA Expenditures 599,728$ 569,173$ -$ EPIC ASA Expenditures -$ -$ 820,440$ LCE ASA Expenditures 1,099,356$ 1,131,712$ 1,146,428$ PCE ASA Expenditures 962,872$ 913,129$ 953,048$ PRIME ASA Expenditures 538,332$ 537,298$ 548,344$ RMEA - ASA Expenditures 539,328$ 560,121$ 576,272$ SBCE - ASA Expenditures -$ 525,251$ 880,260$ SJP - ASA Expenditures 507,376$ 522,117$ 546,520$ Total ASA Expenditures 4,903,670$ 5,449,700$ 6,186,836$ Grant/Program Funds
GHG Grant Expenses -$ 46,471$ 779,801$ Total Grant/Program Funds -$ 46,471$ 779,801$ TOTAL EXPENDITURES 6,503,638$ 7,102,279$ 8,722,293$ CHANGE IN NET POSITION 55,718$ (261,597)$ 107,279$ Summary for Staff Report Page 2 of 3
California Choice Energy Authority
Fiscal Year 2021/22 Adopted & Fiscal Year 2022/23 Proposed Budget FY 2021/22
Adopted Budget
FY 2021/22
Estimates as of
5/31/22
FY 2022/23
Proposed Budget

STATEMENT OF NET POSITION
Results of Operations: 55,718$ (261,597)$ 107,279$ Beginning Net Position 463,129$ 387,306$ 125,709$ NET POSITION, END OF FISCAL YEAR 518,846$ 125,709$ 232,988$

STATEMENT OF FUND BALANCE
Designated Reserves
Financial Stability Reserve 300,000$ 300,000$ 200,000$ Total Designated Reserves 300,000$ 300,000$ 200,000$ Undesignated Reserves 218,846$ (174,291)$ 32,988$ TOTAL RESERVES 518,846$ 125,709$ 232,988$ Energy Transactions pass Throughs:

Energy Revenues
Apple Valley - Energy Revenue 620,890$ 3,940,694$ 3,940,694$ Lancaster - Energy Revenue 932,982$ 7,504,197$ 7,504,197$ Palmdale - Energy Revenue -$ -$ (3,000,000)$ Pico Rivera - Energy Revenue 634,718$ 2,768,179$ 2,768,179$ Pomona - Energy Revenue 3,350,099$ -$ (5,025,148)$ Rancho Mirage - Energy Revenue 1,262,561$ 4,937,612$ 4,937,612$ San Jacinto - Energy Revenue 656,405$ 2,854,697$ 2,854,697$ Santa Barbara - Energy Revenue -$ (1,078,500)$ (1,438,000)$ Total Energy Revenues 7,457,655$ 20,926,878$ 12,542,230$ Energy Expenditures
Apple Valley - Energy Expense 620,890$ 3,940,694$ 3,940,694$ Lancaster - Energy Expense 932,982$ 7,504,197$ 7,504,197$ Palmdale - Energy Expense -$ -$ (3,000,000)$ Pico Rivera - Energy Expense 634,718$ 2,768,179$ 2,768,179$ Pomona - Energy Expense 3,350,099$ -$ (5,025,148)$ Rancho Mirage - Energy Expense 1,262,561$ 4,937,612$ 4,937,612$ San Jacinto - Energy Expense 656,405$ 2,854,697$ 2,854,697$ Santa Barbara - Energy Expense -$ (1,078,500)$ (1,438,000)$ Total Energy Expenditures 7,457,655$ 20,926,878$ 12,542,230$ Net Results of Energy Transactions -$ -$ -$ Summary for Staff Report Page 3 of 3

STAFF REPORT
City of Lancaster
CB
1 6/14/2022
JC
Date: June 14, 2022
To: Mayor Parris and City Council Members
From: Jeff Hogan, Senior Director - Development Services Chenin Dow, Senior Manager – Real Estate and Economic Development Sydney Yeseta, Assistant Manager – Economic Development Subject: Lancaster Tourism Business Improvement District Recommendation:

Open and receive public testimony to allow members of the public to provide comments on the proposed Lancaster Tourism Business Improvement District.

Fiscal Impact:

None.

Background:

Since its inception in 2013, the Lancaster Tourism Business Improvement District (LTBID) has seen resounding success in attracting new tourism and generating increased hotel stays within the City of Lancaster. Dubbed “Destination Lancaster,” the organization encompasses nine hotels, and has established a dedicated revenue stream to be used exclusively for the promotion of tourism to benefit member hotels.

As the LTBID’s second five-year term of operation draws to a close, its success is clear. Under the leadership of Council Member Ken Mann and Antelope Valley Fair representative Ron Emard, member hotels have continued to see gains in the two key indicators of financial health in the hotel industry: occupancy rates and average daily rate. Meanwhile, the City of Lancaster has enjoyed significant transient occupancy tax revenues. Despite the devastating challenges of COVID-19 on hotels and tourism, Destination Lancaster hotels were able to recover much quicker than those in other cities and regions.

As a result of its remarkable success, Destination Lancaster’s member hotels have petitioned to renew the LTBID for a ten-year term beginning on February 1, 2023. As outlined in the Management District Plan, the LTBID will include all lodging businesses in the City of Lancaster 9 3
3 within the boundary indicated in the Plan. The proposed LTBID charge would increase from 2% to 3% of the nightly room rate. The Destination Lancaster Board of Directors will have the option to raise the rate to a maximum of 5% in future years, with a maximum increase per year of one- half percent (0.5%).

Destination Lancaster will continue to be governed by a Board of Directors, which represents a partnership between the City, member hotels, and key local stakeholders. The nine-member board will include two City representatives, two representatives of the Antelope Valley Fair, one representative of the Chamber of Commerce, and four representatives of member hotels.

At its May 3rd, 2022, meeting, the City Council approved the Resolution of Intention to renew the LTBID. This public meeting marks the second step in the renewal process. The third and final step is a public hearing, to be held at the June 28 th City Council meeting. If renewed, the district will continue its work to promote travel and tourism in the City of Lancaster.

SY/sm
Attachment:

Management District Plan
v

2023-2033

LANCASTER TOURISM BUSINESS

IMPROVEMENT DISTRICT

MANAGEMENT DISTRICT PLAN
February 4, 2022 Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.

CONTENTS
I. OVERVIEW ........................................................................................................................................ 2 II. BACKGROUND ................................................................................................................................ 3 III. BENEFITS ........................................................................................................................................... 4 IV. BOUNDARY ....................................................................................................................................... 5 V. ASSESSMENT BUDGET AND SERVICES ................................................................................ 6 A. Annual Service Plan ............................................................................................................ 6 B. Annual Budget .................................................................................................................... 8 C. California Constitutional Compliance ................................................................................ 9 D. Assessment ........................................................................................................................ 10 E. Penalties and Interest ........................................................................................................ 11 F. Time and Manner for Collecting Assessments ................................................................. 12 VI. GOVERNANCE ............................................................................................................................... 13 A. Owners’ Association ......................................................................................................... 13 B. Brown Act and California Public Records Act Compliance ............................................ 13 C. Annual Report ................................................................................................................... 13 APPENDIX 1 – LAW .................................................................................................................................... 14 APPENDIX 2 – ASSESSED BUSINESSES ............................................................................................. 25 APPENDIX 3 – BOUNDARY MAP ......................................................................................................... 26

Prepared by:

(800)999-7781
www.civitasadvisors.com

LTBID Management District Plan 2
February 4, 2022

I. OVERVIEW

Developed by the Visitors Bureau of Lancaster dba Destination Lancaster (DL) and Lancaster hoteliers, the Lancaster Tourism Business Improvement District (LTBID) is a n assessment district proposed to continue to provide specific benefits to payors, by funding marketing and sales promotion efforts for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provi de the benefit of additional room night sales directly to payors. The LTBID was formed in 2012 and renewed in 2017. DL and Lancaster lodging businesses now wish to renew the LTBID for a ten (10) year term.

Boundaries: The renewed LTBID includes all lodging businesses within the boundaries of portions of the City of Lancaster, as shown on the map in Section IV.

Services: The LTBID is designed to provide specific benefits directly to payors by increasing room night sales. Marketing, sales and promotions programs and visitor services will increase demand for overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales.

Budget: The total LTBID annual assessment budget for the in itial year of its ten (10) year operation is anticipated to be approximately $750,000. A similar assessment budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do, and if the assessment rate is increased pursuant to this Plan.

Cost: The initial annual assessment rate is three percent ( 3%) of gross short -term room rental revenue. During the ten (10) year term, the assessment rate may be increased by the Owners’ Association Board to a maximum of five percent (5%) of gross short- term room rental revenue. The maximum increase in any year shall be one-half of one percent (0.5%). Based on the benefit received, assessments will not be collected on :
stays of more th an thirty (30) consecutive days and stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.
.

Collection: The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the LTBID. T he City shall take all reasonable efforts to collect the assessments from each lodging business.

Duration: The renewed LTBID will have a ten (10) year life, beginning February 1, 2023 or as soon as possible thereafter, and end ten (10) years from its start date. Once per year, beginning on the anniversary of LTBID renewal, there is a 30 -day period in which owners paying more than fifty percent (50%) of the assessment may protest and initiate a City Council hearing on LTBID termination.

Management: Destination Lancaster (DL) will continue to serve as the LTBID’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide annual reports to the City Council.

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II. BACKGROUND

TBIDs are an evolution of the traditional Business Improvement District. The first TBID was formed in West Hollywood, California in 1989. Since then, over 110 California destinations have followed suit. In recent years, other states have begun adopting the California model – Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TBID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TBID. And, some cities, like Portla nd, Oregon and Memphis, Tennessee have utilized their home rule powers to cre ate TBIDs without a state law.

California’s TBIDs collectively
raise over $300 million annually
for local destination marketing.

With competitors raising their
budgets, and increasing rivalry
for visitor dollars, it is
important that Lancaster
lodging businesses continue to
invest in stable, lodging -
specific marketing programs.

TBIDs utilize the efficiencies of private sector operation in the market -based promotion of tourism districts. TBIDs allow lodging business owners to organize their efforts to increase demand for room night sales. Lodging business owners within the TBID pay an assessment and those funds are used to provide services that increase demand for room night sales.

In California, most TBIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TBIDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.

There are many benefits to TBIDs:

 Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
 Funds cannot be diverted to general government programs;  They are customized to fit the needs of payors in each destination;  They allow for a wide range of services;
 They are designed, created and governed by those who will pay the assessment; and  They provide a stable, long-term funding source for tourism promotion.

1 2 4 6 9 12 19 25 29 32 38 46
61 64
75 95 101109114
0 20
40 60
80 100
120
Number of Districts Operating in California

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III. BENEFITS

There are many benefits of a TBID in Lancaster:

 Lancaster’s TBID is an influential mechanism for boosting key performance indicators including increased occupancy, average daily rate, marketing penetration index and revenue generation index for assessed lodging businesses.
 Lancaster’s TBID governance is a partnership between assessed lodging businesses and community influencers to further the interests of tourism and to position the industry to shape local and regional policies.
 Lancaster’s TBID is customized to fit the specific needs of our unique community and assessed lodging businesses.
 Lancaster’s TBID provides a dedicated, long-term revenue stream for tourism promotion that must, by law, be spent on services and improvements that provide a specific benefit to those who pay. Funds cannot be diverted to general government programs.  Lancaster’s TBID allows for a wide range of services that increase the economic vitality of the region.

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IV. BOUNDARY

The renewed LTBID includes all lodging businesses within the boundaries of portions of the City of Lancaster, as shown on the map below.

Lodging business means: any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes and including any hotel, in tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mob ilehome or house trailer at a fixed location, or other similar structure or portion thereof.

The boundary, as shown in the map below, currently includes nine (9) lodging businesses. A complete listing of lodging businesses within the renewed LTBID can be found in Appendix 2. A large r boundary map can be found in Appendix 3.

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V. ASSESSMENT BUDGET AND SERVICES

A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the LTBID funds are sales, marketing & promotions programs and visitor services available only to assessed businesses.

A service plan assessment budget has been developed to deliver services that benefit the assessed businesses. A detailed annual assessment budget will be developed and approved by DL. The table below illustrates the initial annual assessment budget allocations. The total initial assessment budget is $750,000.

Although actual revenues will fluctuate due to market conditions and assessment rate changes , the proportional allocations of the budget shall remain the same. However, the City and the DL board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the LTBID, any and all assessment funds may be used for the costs of defending the LTBID.

Each budget category includes all costs related to providing that service. For example, the sales and marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales and marketing program. Staff time dedicated purely to administrative tasks is allocated to the administrative portion of the budget. The staffing levels necessary to provide the services below will be determined by DL on an as- needed basis.

Sales, Marketing & Promotions
A sales, marketing, and promotions program will promote assessed businesses as tourist, meeting, and event destinations. The sales, marketing, and promotions program will have a central theme of promoting the destination as a desirable place for overnight visits. The program will have the goal of Sales, Marketing &
Promotions,
$525,000, 70%
Visitor Services,
$75,000 , 10%
Administration,
$112,500 , 15%
Contingency/Reserve,
$37,500 , 5%
Initial Annual Assessment Budget - $750,000

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increasing demand for overnight visitation and room night sa les at assessed businesses, and may include the following activities:
 Internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation and room sales to assessed businesses;  Print ads in magazines and newspapers targeted at potential visitors to drive overnight visitation and room sales to assessed businesses;
 Digital ads targeted to include social platforms and TV streaming channels at potential visitors to drive overnight visitation and room sales to assessed businesses;  Radio ads & Streaming Music ads targeted at potential visitors to drive overnight visitation and room sales to assessed businesses;
 Attendance of trade shows to promote assessed businesses;  Familiarization tours of assessed businesses;
 Sponsorship of local events that drive overnight visitation  Preparation and production of collateral promotional materials such as brochures, visitor guides, flyers, and maps featuring assessed businesses;  Attendance of professional industry conferences and affili ation events to promote assessed businesses;
 Partnership with both local and state tourism organizations to target key international markets to increase overnight visitation at assessed businesses;  Development and implementation of a public relations and communications strategy, inclusive of social media outlets and press release distribution designed to drive overnight visitation at assessed businesses;
 Development of Return on Investment (ROI) analysis on the effectiveness of district funds to improve effectiveness and increase demand for overnight visitation at assessed businesses;  Development of a marketing plan to ensure district funds are strategically spent to market assessed lodging businesses.
 Lead generation activities designed to attract visitors and group events to assessed businesses;  Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed businesses; and
 Education of lodging business management and the owners’ association on marketing strategies best suited to meet assessed businesses’ needs.

Visitor Services
The Visitor Services program may include, but is not limited to, the following activities:
 A Security program for assessed businesses to improve the overall visitor experience;  Comprehensive and integrated wayfinding signage system including signage to assessed businesses, the visitor center and other points of interest;  Improvements to existing parks and sports facilities utilized by overnight visitors; and  Infrastructure improvements that enhance the destination’s competitive position to attract desirable special events year-round and attract overnight visitors.

Administration and Operations
The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, and other general administrative costs such as insurance, audit, legal, and accounting fees.

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Contingency/Reserve
The budget includes a contingency line item to account for uncollected assessments, or higher than anticipated program costs, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program or administration costs at the discretion of the TBID Committee. Policies relating to contributions to the reserve f und, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the Owners’ Association.

B. Annual Budget
The total ten (10) year improvement and service plan assessment budget is projected at approximately $750,000 annually, or $70,543,988 through 2033 if the maximum assessment rate increases are adopted. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do, and if the assessment rate is increased. The annual assessment rate is three percent (3%) of gross short-term room rental revenue. During the ten (10) year term, the assessment rate may be increased by the Owners’ Association Board to a maximum of five percent (5%) of gross short-term room rental revenue. The maximum increase in any year shall be one-half of one percent (0.5%). The assessment rate may or may not increase starting in FY 2024-25, the increases may be implemented in later years at the discretion of the Owners’ Association. The table below demonstrates the maximum budget with the assumption that the assessment rate will be increased by 0.5% each year from FY 2024-25 to FY 2027-28 to the maximum assessment rate, as it is a required disclosure, it is not the anticipated course o f action. Additionally, a three percent (3%) annual increase in the total budget is shown in both scenarios, to account for estimated increased room night sales as a result of LTBID efforts. This three percent (3%) annual increase is a conservative estim ate based on the effects of similarly sized TBID budgets.

Estimated Annual Budget If Maximum Assessment Rates Are Adopted 2023-2033
Year
Sales,
Marketing &
Promotions
Visitor
Services Admin Contingency
/Reserve Total Assessment
Rate
2023-24 $1,516,200 $216,600 $324,900 $ 108,300 $2,166,000 3.0% 2024-25 $2,416,798 $371,815 $669,267 $ 185,908 $3,718,151 3.5% 2025-26 $3,556,217 $547,110 $984,799 $ 273,555 $5,471,103 4.0% 2026-27 $4,578,630 $704,405 $1,267,928 $ 352,202 $7,044,046 4.5% 2027-28 $5,239,935 $806,144 $1,451,059 $ 403,072 $8,061,438 5.0% 2028-29 $5,397,133 $830,328 $1,494,591 $ 415,164 $8,303,281 5.0% 2029-30 $5,559,047 $855,238 $1,539,428 $ 427,619 $8,552,380 5.0% 2030-31 $5,725,818 $880,895 $1,585,611 $ 440,448 $ 8,808,951 5.0% 2031-32 $5,897,593 $907,322 $1,633,180 $ 453,661 $ 9,073,220 5.0% 2032-33 $6,074,521 $934,542 $1,682,175 $ 467,271 $ 9,345,416 5.0% Total $ 45,961,892 $ 7,054,399 $12,632,938 $ 3,527,199 $70,543,988

The table below demonstrates the annual improvement and service plan budget with the assumption that the rates will not be increased during the LTBID’s ten (10) year term. Additionally, a three percent (3%) annual increase in the total budget is shown, to account for estimated increased room night sales as a result of LTBID efforts.

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Estimated Annual Budget If Maximum Assessment Rates Are Not Adopted 2023-2033
Year Sales, Marketing
& Promotions
Visitor
Services Admin Contingency
/Reserve Total
2023-24 $1,516,200 $216,600 $324,900 $108,300 $2,166,000 2024-25 $1,561,686 $223,098 $334,647 $111,549 $2,230,980 2025-26 $1,608,537 $229,791 $344,686 $114,895 $2,297,909 2026-27 $1,656,793 $236,685 $355,027 $118,342 $2,366,847 2027-28 $1,706,496 $243,785 $365,678 $121,893 $2,437,852 2028-29 $1,757,691 $251,099 $376,648 $125,549 $2,510,988 2029-30 $1,810,422 $258,632 $387,948 $129,316 $2,586,317 2030-31 $1,864,735 $266,391 $399,586 $133,195 $2,663,907 2031-32 $1,920,677 $274,382 $411,574 $137,191 $2,743,824 2032-33 $1,978,297 $282,614 $423,921 $141,307 $2,826,139 Total $ 17,381,534 $ 2,483,076 $3,724,614 $1,241,538 $24,830,763

C. California Constitutional Compliance
The LTBID assessment is not a property-based assessment subject to the requirements of Proposition 218. The Court has found, “Proposition 218 limited the term ‘assessments’ to levies on real property.”1 Rather, the LTBID assessment is a business -based assessment, and is subject to Proposition 26.

Pursuant to Proposition 26 a ll levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the LTBID, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services.

1. Specific Benefit
Proposition 26 requires that assessment funds be expe nded on, “ a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed lodging businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment . These services are tailored not to serve the general public , businesses in general, or parcels of land, but rather to serve the specific lodging businesses within the LTBID. The activities described in this Plan are specifically targeted to increase demand for room night sales for assessed lodging businesses within the boundaries of the LTBID, and are narrowly tailored. LTBID funds will be used exclusively to provide the specific benefit of increased room night sales directly to the assessees. Assessment funds shall not be used to feature non -assessed lodging businesses in LTBID programs, or to directly generate sales for non -assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses.

1 Jarvis v. the City of San Diego 72 Cal App. 4th 230
2 Cal. Const. art XIII C § 1(e)(1)

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The assessment imposed by the LTBID is for a specific benefit conferred directly to the payors that is not provided to th ose not charged. The specific benefit conferred directly to the payors is an increase in room night sales. The specific benefit of an increase in room night sales for assessed lodging businesses will be provided only to lodging businesses paying the dist rict assessment, with sales, marketing & promotions and visitors services promoting lodging businesses paying the district assessment. The sales, marketing & promotions and visitors services programs will be designed to increase demand for room night sales at each assessed lodging businesses. Because they are necessary to provide the sales, marketing & promotions and visitors services programs that specifically benefit the assessed lodging businesses, the administration and contingency services also provide the specific benefit of increased room night sales to the assessed lodging businesses.

Although the LTBID, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3

2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.”4 The legislature has recognized that marketing and promotions services like those to be provided by the LTBID are government services within the meaning of Proposition 26 5. Further, the legislature has determined that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6

3. Reasonable Cost
LTBID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by DL, and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from district -funded activities, be featured in advertising campaigns, and benefit from other district-funded services. Non- assessed lodging businesses will not receive these, nor any other, district-funded services and benefits.

The LTBID-funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there wi ll be a spill over benefit to non -assessed businesses. If non-assessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-LTBID funds. LTBID funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses.

D. Assessment
The initial annual assessment rate is three percent (3 %) of gross sh ort-term room rental revenue.

During the ten (10) year term, the assessment rate may be increased by the Owners’ Association Board

3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)

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to a maximum of five percent (5%) of gross short-term room rental revenue. The maximum increase in any year shall be one -half of one percent (0.5%). Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days or stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

The term “gross room rental revenue” as used herein means: the consideration charged, whether or not received, for the occupancy of space in a lodging business valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits, and property and services of any kind or nature, without any deduction therefrom whatsoever . Gross room rental revenue shall not include any federal, state or local taxes collected, including but not limited to transient occupancy taxes.

The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each tra nsient shall receive a receipt for payment from the business. The assessment shall be disclosed as the “ LTBID Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to trans ients. The assessment shall not be considered revenue for any purposes, including calculation of transient occupancy taxes.

Bonds shall not be issued.

E. Penalties and Interest
The LTBID shall reimburse the City of Lancaster for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent LTBID assessment are sought to be recovered in the same collection action by the City, the LTBID shall bear its pro rata share of such collection costs.

Assessed businesses which are delinquent in paying the assessment shall be responsible for paying:

1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within the time required shall pay a penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment.

2. Continued Delinquency: Any lodging business that fails to remit any delinquent remittance on or before a period of thirty (30) days following the da te on which the remittance first became delinquent shall pay a second delinquency penalty of ten percent (10%) of the amount of the assessment in additional to the amount of the assessment and the ten percent (10%) penalty first imposed.

3. Fraud: If the City determines that the nonpayment of any remittance due is due to fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the penalties stated in subsections 1 and 2 above.

4. Interest: In addition t o the penalties imposed, any lodging business that fails to remit any assessment imposed shall pay interest at the rate of one -half of one percent per month or fraction thereof on the amount of the assessment, exclusive of penalties, from the data on which the remittance first became delinquent until paid.

5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues under the provisions of this section, shall become a part of the assessment herein required to be paid.

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F. Time and Manner for Collecting Assessments
The LTBID assessment will be implemented beginning February 1, 2023 or as soon as possible thereafter, and end ten (10) years from its start date. The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to the Owners’ Association.

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VI. GOVERNANCE

A. Owners’ Association
The City Council , through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the O wners’ Association of the LTBID as defined in Streets and Highways Code §36612. The City Council has determined that Visitors Bureau of Lancaster dba Destination Lancaster will serve as the Owners’ Association for the LTBID. DL’s Board of Directors shall be composed of nine (9) Directors as follows:
 Two (2) Directors representing the City of Lancaster;  Two (2) Directors representing the Antelope Valley Fairgrounds;  Four (4) Directors representing assessed lodging businesses; and  One (1) Director representing the Lancaster Chamber of Commerce.

B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the DL board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action.

C. Annual Report
DL shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
 Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
 The improvements and activities to be provided for that fiscal year.  An estimate of the cost of providing the improvements and the activities for that fiscal year.  The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business f or that fiscal year.
 The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
 The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.

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APPENDIX 1 – LAW

*** THIS DOCUMENT IS CURRENT THROUGH THE 2021 SUPPLEMENT *** (ALL 2020 LEGISLATION)

STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994

CHAPTER 1. General Provisions

ARTICLE 1. Declarations

36600. Citation of part

This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.”

36601. Legislative findings and declarations; Legislative guidance

The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed.

Therefore, for special benefits to exist as a separate and distinct category from general benefits, the

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incidental or collateral effects of those special benefits are inherently part of those special benefits.

The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.
(3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits.

Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.

36602. Purpose of part

The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.

36603. Preemption of authority or charter city to adopt ordinances levying assessments

Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).

36603.5. Part prevails over conflicting provisions

Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.

36604. Severability

This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

ARTICLE 2. Definitions

36606. “Activities”

“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district.

36606.5. “Assessment”

“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.

36607. “Business”

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“Business” means all types of businesses and includes financial institutions and professions.

36608. “City”

“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California.

36609. “City council”

“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part.

36609.4. “Clerk”

“Clerk” means the clerk of the legislative body.

36609.5. “General benefit”

“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.

36610. “Improvement”

“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.

36611. “Management district plan”; “Plan”

“Management district plan” or “plan” means a proposal as defined in Section 36622.

36612. “Owners’ association”

“Owners’ association” means a p rivate nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association sh all comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district. 36614. “Property”

“Property” means real property situated within a district.

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36614.5. “Property and business improvement district”; “District”

“Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.

36614.6. “Property-based assessment”

“Property-based assessment” means any assessment made pursuant to this part upon real property.

36614.7. “Property-based district”

“Property-based district” means any district in which a city levies a property-based assessment.

36615. “Property owner”; “Business owner”; “Owner”

“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this par t requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient.

36615.5. “Special benefit”

“Special benefit” means, for purposes of a property -based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benef it includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.

36616. “Tenant”

“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

ARTICLE 3. Prior Law

36617. Alternate method of financing certain improvements and activities; Effect on other provisions

This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provi sions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

CHAPTER 2. Establishment

36620. Establishment of property and business improvement district

A property and business improvement district may be established as provided in this chapter.

36620.5. Requirement of consent of city council

A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board

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of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city.

36621. Initiation of proceedings; Petition of property or business owners in proposed district

(a) Upon the submission of a writte n petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district.

The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall in clude a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information spec ifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activ ities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the impr ovements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consis tent with the requirements of Section 36623.

36622. Contents of management district plan

The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If t he assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, a nd activities are proposed for subsequent years shall satisfy the requirements of this subdivision.

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(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount propos ed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwi thstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k) (1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property -based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property -based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (l) In a property -based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district.
(m) In a property-based district, the total amount of general benefits, if any. (n) In a property -based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o) Any other item or matter required to be incorporated therein by the city council.

36623. Procedure to levy assessment

(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orall y or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest m ay be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a per son subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A writ ten protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay

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50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, sha ll be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.

36624. Changes to proposed assessments

At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627.

36625. Resolution of formation

(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as t o whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district sha ll not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the dist rict.

Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a p roperty-based district, that property within the district will receive a special benefit.
(8) In a property -based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.

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36627. Notice and assessment diagram

Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part.

36628. Establishment of separate benefit zones within district; Categories of businesses

The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also defin e categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone.

36628.5. Assessments on businesses or property owners

The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, mai ntenance, and activities, provided that any property - based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622.

36629. Provisions and procedures applicable to benefit zones and business categories

All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district.

36630. Expiration of district; Creation of new district

If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.

CHAPTER 3. Assessments

36631. Time and manner of collection of assessments; Delinquent payments

The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.
36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property

(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.

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(c) Properties zo ned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.

36633. Time for contesting validity of assessment

The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.

36634. Service contracts authorized to establish levels of city services

The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed.

36635. Request to modify management district plan

The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter.

36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention

(a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded wi th the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.

36637. Reflection of modification in notices recorded and maps

Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.

CHAPTER 3.5. Financing

36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments

(a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks -Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part.

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(b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution o f formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduce d or terminated if doing so would interfere with the timely retirement of the debt.

CHAPTER 4. Governance

36650. Report by owners’ association; Approval or modification by city council

(a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvement s, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributio ns to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the l evy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district.

36651. Designation of owners’ association to provide improvements, maintenance, and activities

The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.

CHAPTER 5. Renewal

36660. Renewal of district; Transfer or refund of remaining revenues; District term limit

(a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues

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shall be spent to benefit only the parcels or businesse s in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

CHAPTER 6. Disestablishment

36670. Circumstances permitting disestablishment of district; Procedure

(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30 -day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30 -day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.

36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district

(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.

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APPENDIX 2 – ASSESSED BUSINESSES

Business Name Business Address City, State, ZIP
Best Western Plus (Desert Poppy) 2038 W. Ave. I Lancaster, CA 93536 Comfort Inn & Suites 1825 W. Ave J-12 Lancaster, CA 93534 Hampton Inn & Suites 2300 Double Play Way Lancaster, CA 93536 Holiday Inn Express 43719 17th St. West Lancaster, CA 93534 Homewood Suites 2320 Double Play Way Lancaster, CA 93536 Marriott Springhill Suites 1811 W. Ave J-12 Lancaster, CA 93534 Oxford Inn & Suites 1651 W. Ave K Lancaster, CA 93534
Residence Inn by Marriott 847 W Lancaster Blvd Lancaster, CA 93534 TownePlace Suites 2024 W. Ave J-8 Lancaster, CA 93536
*Lodging list as of January 2022

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APPENDIX 3 – BOUNDARY MAP

Lancaster City CouncilJune 14, 2022

Lancaster City Council
June 14, 2022