Agenda packet — Lancaster City Council, July 8, 2025 (part 3 of 3)

WHEREAS, staff has performed the necessary investigations to ensure the proposed division of land would be consistent with the purpose of the City’s Subdivision Ordinance, the State Subdivision Map Act, and the regulations of the LMC; prepared a written report, and recommended approval of the TTM and CUP subject to conditions and recommended approval of the GPA and ZC by City Council; and
WHEREAS, an Initial Study (SCH#2024080570) was prepared for the proposed project in compliance with the California Environmental Quality Act (“CEQA”) and circulated for public review ending on September 30, 2024; and
WHEREAS, comments were received on the Initial Study from residents, local and state agencies, non-governmental organizations, and law firms during the public comment period; and WHEREAS, a Revised Initial Study was prepared for the proposed project in compliance with CEQA and circulated for public review ending on April 18, 2025; and WHEREAS, public notice was published and given as required by law, and a public hearing was held on April 21, 2025; and
WHEREAS, all comment letters received during and after the comment periods were reviewed by staff, provided to the members of the Planning Commission, and discussed during the public hearing on April 21, 2025;
WHEREAS, the Planning Commission approved the TTM and CUP and recommended approval of the GPA and ZC to the City Council on April 21, 2025; and WHEREAS, Lozeau Drury, representing Supporters Alliance for Environmental Responsibility (SAFER) subsequently filed an appeal of the Planning Commission action in accordance with Chapter 2.44 of the Lancaster Municipal Code on April 25, 2025; and WHEREAS, three additional appeals were filed on the Planning Commission action from Adams Broadwell, representing Coalition for Responsible Equitable Economic Development Los Angeles (CREED LA), White Fence Farms Homeowners, and Jordan R Sisson Law Firm, representing UNITE HERE 11; and
WHEREAS, a notice of intention to consider the upholding of the Planning Commission approval of TTM No. 24-001 (84317) and CUP No. 21-001 and approval of GPA No. 21-001 and ZC No. 21-001 has been given, as required in Article V of Chapter 17.32 of the LMC and in Section 65905 of the Government Code of the State of California; and WHEREAS, on July 8, 2025, the City Council held a duly noticed public hearing on the appeal, reviewed and considered the staff report prepared regarding the appeal, and considered testimony presented during the public hearing;
WHEREAS, this Council hereby adopts the following General Plan Amendment findings, pursuant to Sections 17.24.140 and 17.24.170 of the LMC, in support of this application:

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a. Information presented at public hearing shows that such amendment is necessary to implement the general plan and/or the public convenience, the general welfare or good zoning practice justifies such action.

There are no goals, objectives, policies, or specific actions of the General Plan that would conflict with the proposed amendment. The subject property is located along Avenue L which is a major arterial with a mix of residential, commercial, park, and medical uses in the immediate vicinity. The mix of uses has been changing over time with more commercial uses being added to the mix in the central portion of the City (i.e., Challenger Way to 40 th Street West). The Antelope Valley Freeway is immediately east of the project site.

The proposed amendment would allow for development of the project site in accordance with goals of the City and provide for additional residential and commercial uses along a major roadway in a mixed-use setting. The proposed amendment would not adversely affect the economic health of the City, as the development of the project would not require a major investment to provide access or public infrastructure to the site. Access already exists from Avenue L and 15th Street West and the developer would be required to install the necessary improvements to ensure that these roadways continue to operate in a smooth and efficient manner. Additionally, public utilities including water, sewer, and electricity exist in the vicinity of the project site and can be extended to provide service.

Additionally, development features of the proposed project including block walls on the southern boundary, site landscaping and the placement of the parking either underground or in the center of the project site would minimize impacts on the immediately adjacent neighbors. The site has also been designed in a way to ensure the safety of employees, visitors and neighboring residents including adequate site lighting and clear visibility throughout the site and into the main entrances of structures. The placement of parking within the center of the site with the multi-family and hotel buildings along the western and southern boundaries of the site is consistent with the requirements of the zone and will assist in blocking the surrounding residential land uses from activities and noise generated on-site. The property directly north of the project site at the northeast corner of Avenue L and 15th Street West is zoned OP (Office Professional) which is meant for office and related commercial uses and the property at the northwest of Avenue L and 15 th Street West is zoned HDR (High Density Residential, 15.1-30 units to the acre) and developed with townhomes. As such, the proposed amendment would be compatible with the surrounding land uses and the general plan designations.

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WHEREAS, this Council hereby adopts the following Zone Change findings, pursuant to Section 17.24.120 of the LMC, in support of this application:
a. That modified conditions warrant a revision in the zoning plan as it pertains to the area or district under consideration.

Modified conditions warrant a revision in the zoning plan in order to allow for the permitting of the project. The subject site is located at the southeast corner of Avenue L and 15th Street West along a major arterial in the central portion of the city. The uses along this arterial have been changing from a mix of residential and commercial uses to include more commercial uses and higher density, particularly close to the freeway. Rezoning of the project site would continue the commercial zoning east of the freeway and further connect it with the commercial zoning to the west of the project site (20 th Street West and Ave L). It would also provide a higher density mixed -use buffer between the existing residential uses and Avenue L and additional commercial uses. Therefore, the zoning would be compatible with the surrounding zoning designations and land uses. b. That a need for the proposed zone classification exists within such area or district.

A need for the MU-C zoning on the subject property exists in order to provide for the mix of residential and commercial uses along a major arterial. The zoning would allow for the provision of 181 multi-family residential units, a 235 room hotel with associated 3,800 square foot club house, and 12,800 square feet of retail/restaurant space in a mixed-use environmental. No alcohol sales are proposed as part of the hotel or restaurant operations and any future sale of alcohol would require additional approvals. The subject site’s location provides for easy access to and from the freeway and is consistent with other commercial and residential uses in the area. The MU-C zoning would allow for the type of development proposed and would be compatible with the surrounding uses and zoning. c. That the particular property under consideration is a proper location for said zone classification within such area or district.

The particular property under consideration is a suitable location for the MU-C zone as several properties in the immediate vicinity are also zoned for commercial and higher density residential uses. These locations include the northeast corner of Avenue L and 15th Street West (zoned OP), the properties on the north and south side of Avenue L east of the freeway, and the northeast and southeast corners of Avenue L and 20 th Street West. The northwest corner of Avenue L and 15th Street West is zoned HDR as well as the southwest and southeast corner of Avenue K-8 and 15th Street West. While there is a rural residential community located on the south side of Avenue L, development features of the project would provide buffers between the subject property and the surrounding uses such as a block wall along the southern boundary, perimeter and site landscaping and the height of the buildings would block noise generate by site activities and Avenue L. Additionally, access to the project site would be available 15 th Street West via two driveways and 15 th Street West would be improved along the site frontage to handle all traffic. The construction of additional roadways would not be required.

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d. That placement of the proposed zoned at such location will be in the interest of public health, safety, and general welfare and in conformity with good zoning practice.

Placement of the zone at this location will be in the interest of public health, safety, and general welfare and is in conformity with good zoning practice. The zone change would provide another location for higher density residential and commercial uses along a rapidly changing, major arterial in the central portion of the city. The zoning would be consistent with the commercial and residential zoning of various properties along Avenue L in the vicinity of the project site including the northeast corner of Avenue L and 15th Street West, properties on the north and south sides of Avenue L just east of the freeway, and the commercial properties at the northeast and southeast corners of Avenue L and 20 th Street West as well as the residential properties at the northwest corner of Avenue L and 15 th Street West and the southeast and southwest corners of Avenue K-8 and 15 th Street West.

The development would also be compatible with the neighboring residential uses and RR-

2.5 zoning with the incorporation of the design features proposed as part of the project.

WHEREAS, this Council hereby adopts the following Tentative Tract Map findings pursuant to Section 16.08.110 of the LMC, in support of approving this application:
a. The proposed subdivision is consistent with the general plan, any applicable specific plan, and is compatible with the general plan land uses, goals, objectives, policies, and specific actions specified in such plan.

The Project is a mixed-use development with a subdivision to create individual lots for each of the uses. The subdivision is consistent with the general plan land use designation of Mixed Use (MU) and with the policies, goals, objectives, and specific actions of the General Plan. The project is not located within the boundaries of a Specific Plan. b. The design and improvement of the proposed subdivision is consistent with the general plan, any applicable specific plan, Title 17, and this title.

The design and improvements of the subdivision are consistent with the General Plan land use designation of MU and the development standards identified in Sections 17.10.060 and

17.10.070 of the LMC. The project site is not located within the boundaries of a specific plan.
c. The site is physically suitable for the type and density of the development proposed.

The project site is physically suitable for the type and density of the development. Adequate roadway capacity and infrastructure exists in the vicinity of the project or can be provided to support the development.
d. The design of the subdivision or the proposed improvements are not likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat.

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The design of the subdivision and the improvements associated with the development of the project are not likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat. An initial study was prepared for the development to assess potential impacts to twenty-one (21) resource areas including biological resources. No wildlife species were observed on the project site; however, suitable habitat exists that may support nesting birds and burrowing owls. Additionally, Joshua trees are present on the project site and would be removed as part of the development. However, mitigation measures have been included requiring preconstruction survey to ensure no impacts to either nesting birds or burrowing owls would occur and an Incidental Take Permit from the California Department of Fish and Wildlife is required to remove the Joshua trees. Mitigation measures have also been provided for other resource areas such as air quality, cultural resources, geology and soils, noise, and transportation.

Additionally, the developer would be required to pay the City’s Biological Impact Fee, which is utilized to help conserve biological resources found throughout the Antelope Valley.
e. The design of the subdivision or the type of improvements will not cause serious public health problems.

The design of the subdivision and the associated improvements are not likely to cause serious public health problems as adequate sewer and water systems will be provided to the development. Additionally, all residences and businesses within the subdivision/Project are required to have trash collection services in accordance with the City of Lancaster’s Waste Management franchise agreement.
f. The design or the types of improvements of the subdivision will not conflict with easements acquired by the public at large, for access through, or use of, property within the subdivision. The city may approve the map if alternate easements will be provided in accordance with Section 66474(g) of the Subdivision Map Act.

There are no known public easements or access across the subject property; therefore, the design of the subdivision will not conflict with public access. Any utility can be accommodated within the design of the project or within the public right-of-way. g. The City’s action will not have an adverse effect on the housing needs of the region and the city has balanced these needs against the public service needs of its residents and available fiscal and environmental resources, in accordance with Section 66412.3 of the Subdivision Map Act.

The project would have a beneficial effect on the housing needs of the region because an additional 181 dwelling units could be provided. The project would not adversely affect the economic health of the City as the infrastructure to support the project, such as roadways and utility lines, currently exists in the vicinity of the project site and the maintenance of this infrastructure is already occurring. Additionally, as discussed under Finding “d”, the project would not have a significant impact on environmental resources.

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h. The design of the subdivision provides, to the extent feasible, for future passive or natural heating or cooling opportunities.

The project is not expected to have any significant impact on any future passive or natural heating or cooling opportunities. The project has been designed to take advantage of heating and cooling opportunities to the extent feasible. Additionally, the project is required to comply with Title 24, which includes requirements for solar energy.

WHEREAS, this Council hereby adopts the following Conditional Use Permit findings, pursuant to Section 17.32.090 of the LMC, in support of approving this application:
a. That the proposed use will not be in substantial conflict with the adopted general plan for the area.

The project would be in conformance with the General Plan Land Use Designation of MU (Mixed Use) with approval of the general plan amendment for the subject site. This general plan land use designation allows for a variety of commercial/ retail establishment and residential uses including apartment buildings, restaurants and hotels. In addition, the proposed development would be consistent with the goals, objectives, policies, and specific actions identified in the General Plan.
b. That the requested use at the location proposed will not:

1. Adversely affect the health, peace, comfort or welfare of persons residing or working in the surrounding area.

The project would be located on approximately 10 acres at the southeast corner of Avenue L and 15th Street West. The subject site would be developed with a mixed use development consisting of 181 multi-family residential units in two buildings, a 235 room hotel with associated 3,800 square foot club house, and 12,800 square feet of restaurant/retail space along with associated site improvements such as landscaping, block walls, parking, etc. While there is a rural residential community located south of Avenue L and the properties to the south of the subject site contain residential uses, the closest residence is approximately 300 feet south of the property line. Development features associated with the project including a block wall on the southern boundary, site landscaping, shielding of exterior/site lighting, the height of the hotel/multi-family residential buildings blocking site activities from the surrounding uses and conditions of approval would ensure that any potential impacts to the health, peace, comfort or welfare of persons residing in the surrounding area would be minimal.

2. Be materially detrimental to the use, enjoyment, or valuation of property of other persons located in the vicinity of the site.

The development would not be materially detrimental to the use, enjoyment, or valuation of property of other persons located in the vicinity. The subject site is Resolution No.

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located along a major arterial and adjacent to the Antelope Valley Freeway. The mixed-use development is compatible with other uses in the area and the conditions of approval would ensure that Project would not detrimentally impact neighboring properties.

3. Jeopardize, endanger or otherwise constitute a menace to the public health, safety, or general welfare.

The project is consistent with the General Plan’s Mixed Use designation as well as the development standards and requirements identified for residential and commercial uses in the Mixed-Use zones of the Lancaster Municipal Code. The project was reviewed by staff and conditions of approval have been placed on the project to ensure that the use would not adversely affect or jeopardize public health and safety.
c. That the proposed site is adequate in size and shape to accommodate the yards, walls, fences, parking and loading facilities, landscaping and other development features prescribed in this title, or as is otherwise required in order to integrate said use with the uses in the surrounding area.

The project site is approximately 10 acres and is adequate in size and shape to accommodate all necessary improvements including walls, landscaping, parking, outdoor dining areas, setbacks, and travel paths.
d. The proposed site is adequately served:

1. By highways or streets of sufficient width and improved as necessary to carry the kind and quantity of traffic such use would generate.

The project site would be served by both Avenue L and 15 th Street West. Avenue L is a major arterial which is currently improved to handle the existing traffic in the area. The project would be required to make any necessary improvements to ensure the safe and efficient operation of the roadway once the project has been constructed. 15th Street West is currently a private, dirt road. The road would be dedicated and become public along the frontage of the property. This roadway would also be fully improved for the length of the project site. This includes curb, gutter, meandering sidewalk, travels and painted median. With these improvements, the adjacent roadways would be of sufficient width and improved as necessary to carry the traffic generated by the project.

2. By other public or private service facilities as are required.

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would be required to comply with all of the Mutual Water Company’s requirements. However, there is also a possibility that the applicant will choose to annex the property into the Los Angeles County Waterworks District No. 14 and obtain the necessary water through that entity. Electrical and gas lines are also available in the vicinity of project site and can be extended to serve the development. As such all necessary services are available for the project site.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LANCASTER, DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS:

1. That the foregoing Recitals are true, correct and a substantive part of this Resolution.

2. This City Council denies the appeal for Tentative Tract Map No. 24-001 (84317) and Conditional Use Permit No. 21-001, upholding the Planning Commission decision.

3. This City Council hereby adopts the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program. Community Development staff is hereby authorized and directed to prepare, execute and file a Notice of Determination pursuant to CEQA (including its implementing guidelines).

4. That the City Council hereby adopts the following General Plan Amendment findings, pursuant to Sections 17.24.140 and 17.24.170 of the LMC, in support of approval of this application:
a. Information presented at the public hearing shows that such amendment is necessary to implement the general plan and/or that the public convenience, the general welfare or good zoning practice justifies such action.

4. That the City Council hereby approves GPA No. 21-001 to redesignate the subject property from NU to UR.

5. This resolution shall take effect immediately upon its passage.

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PASSED, APPROVED and ADOPTED this ______ day of ___________________, 2025, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST: APPROVED:
______________________________ ______________________________ ANDREA ALEXANDER R. REX PARRIS
City Clerk Mayor
City of Lancaster City of Lancaster

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss

CITY OF LANCASTER )

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._____________, 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)
____________________________________
1 Responses to Comments Raised on Appeal
An Initial Study (SCH# 2024080570) was prepared for the proposed project in accordance with the California Environmental Quality Act (CEQA) and circulated for a 30-day public review and comment period from August 14, 2024 to September 13, 2024. An extension to the public comment period was requested by Adams Broadwell and the end of the comment period was extended to September 30, 2024. During the public comment period a total of 35 comment letters were received from State agencies (Caltrans and the California Department of Fish and Wildlife), local agencies (Antelope Valley Air Quality Management District), two law firms (Adams Broadwell representing Coalition for Responsible Equitable Economic Development Los Angeles [CREED LA], and Lozeau Drury representing Supporters Alliance for Environmental Responsibility [SAFER]), and 30 letters from members of the public. After the close of the comment period letters were received from the Jordan R Sisson law firm representing UNITE HERE 11 and Advocates for the Environment.

Based on the comments received, the Initial Study was revised to provide additional information and clarification. The revised Initial Study was circulated for public review and comment from March 19, 2025 through April 18, 2025. Similar comment letters were received on the revised Initial Study from the law firms and the public. No additional comments were received from State/local agencies or Advocates for the Environment. The comment letters were reviewed by staff and provided to the Planning Commissioners in their packets; the issues raised in these letters discussed at the Planning Commission along with responses to issues raised by speakers. No additional revision to the Initial Study were deemed to be necessary. At the April 21, 2025 Planning Commission meeting, the project was approved by a 4-2-0-0-1 vote. This included approving the Revised Initial Study/Mitigated Negative Declaration and adopting the Mitigation Monitoring and Reporting Program.

Subsequent to the approval by the Planning Commission, a formal appeal was filed by Lozeau Drury on April 25, 2025. The appeal claimed that an Environmental Impact Report (EIR) was required due to significant impacts to biological resources, valley fever, noise and air quality including valley fever. In addition to the formal appeal, three other appeals were filed after the Planning Commission approval. These appeals were filed by Adams Broadwell, the White Fence Farms Homeowners, and Jordan R Sisson. In addition to the issues raised in the Lozeau Drury appeal, a variety of other issues were raised in the remaining appeals. A total of 12 broad issues were raised in the appeals. These issues are listed and addressed below:
Biological Resources
Air Quality (including greenhouse gas emissions)
Valley Fever
Noise
Vehicle Miles Traveled
Transportation
Public Services
Energy
2 Noise
Affordable Housing
General Plan (including Urban/Rural areas and plan consistency) Miscellaneous impacts (aesthetics, hydrology and water, wildfire) None of the issues raised in the appeal letter necessitates the revision and/or recirculation of the Initial Study nor is the preparation of an Environmental Impact Report (EIR) required. Although mitigation measures are identified for some resource areas, all impacts associated with the proposed project would be less than significant with the implementation of the identified mitigation measures.

Biological Resources
The appellant(s) state that the proposed project could have a significant impact to biological resources as the Initial Study did not account for the diversity of species, habitat loss, interference with wildlife movement, traffic mortality and bird-window collision.

The project site is approximately 10 acres consisting of highly disturbed habitat surrounded by Avenue L, the Antelope Valley Freeway, and single-family homes on large lots. As documented in the Initial Study, a biological resources report was prepared for the project site including a pedestrian survey. All species that were observed, along with those having the potential to occur on the project site were documented in the biological report. The Initial Study identifies 16 wildlife species that were either observed or their sign was present on the site. Additionally, the biological report identifies other species that have varying levels of the potential to occur on site. None of the species identified in biological report or Initial Study are listed or candidate species. While the bird species identified on site may vary over time, appropriate mitigation measures have been included to address both nesting birds and nesting raptors, burrowing owls, and legless lizards.

These mitigation measures were included as written per the request of CDFW. No revisions to biological resources are necessary.

The site does have 28 individual Joshua trees with two additional clusters of Joshua trees with three to six individuals. Western Joshua trees are a candidate species for listing under the California Endangered Species Act and are afforded all of the protections that a listed species receives. In order to remove, transplant, trim, etc. any Joshua tree a permit is required from the California Department of Fish and Wildlife. As part of that permit, mitigation measures are identified. The Western Joshua Tree Conservation Act that was adopted July 10, 2023 explicitly states that the mitigation is payment of a fee depending upon the height of the tree. No other mitigation measures, including transplanting the trees to another location, are required or necessary. Two mitigation measures were identified for Joshua trees on page 23 of the Initial Study. These mitigation measures reflect the requested wording from the California Department of Fish and Wildlife (CDFW). No changes with respect to Joshua trees are necessary.

The project site is a 10-acre parcel that does not connect to any other undeveloped properties. The southern boundary is developed with single family residences on large (2.5 acre) lots. The northern and eastern boundaries are adjoining Avenue L and the Antelope Valley Freeway, respectively while the western boundary is formed by 15th Street West which is dirt. The site’s location, 3 surrounding development and lack of connectivity prevent it from being utilized as a wildlife corridor. No changes to the Initial Study are warranted to address this issue. It is also possible that wildlife may be hit by vehicles or fly into structures. The potential for this to happen exists now with the roadways and surrounding development. The proposed project will not cause these issues to increase more than they area already occurring and to try and estimate it is speculative.

Air Quality (including greenhouse gas emissions)
The appellant(s) claim that the air quality analysis underestimates the construction and operational air emissions associated with the project and would exceed the thresholds established by the Antelope Valley Air Quality Management District (AVAQMD), would expose residents to diesel particulate matter from trucks, would generate indoor air quality impacts, and would be in conflict with the City’s Climate Action Plan.

An air quality study was prepared for the proposed project in accordance with the guidelines established by the AVAQMD. The study utilized CalEEMod to calculate the construction and operational criteria air pollutant emissions as well as the greenhouse gas (GHG) emissions associated with the project. The calculated emissions can be seen in the Initial Study in Tables 4 and 5 for criteria pollutants and Tables 8 and 9 for GHG emissions. The emission levels for criteria pollutants are substantially lower than the criteria pollutant emissions for the air district.

Additionally, the project would comply with all air quality rules and regulations during construction and operation including dust control requirements, VOCs, equipment permitting, etc.

The threshold established by the air district for GHG emissions is 100,000 tons per year or 548,000 pounds per day. If all GHG emissions associated with construction are added to the annual operational emissions, the total is 1,446 MTCO2e which is substantially below 100,000 MTCO2e.

As such, the emissions are less than significant.

A diesel particulate matter analysis and/or Health Risk Assessment was not conducted for the project as it does not trigger the requirement. According to the AVAQMD CEQA and Federal Conformity Guidelines, the following types of projects proposed for sites within the specified distance to an existing or planned (zoned) sensitive receptor land use must be evaluated for the potential to expose sensitive receptors to substantial pollutant concentrations, including those resulting in a cancer risk greater than or equal to 10 in a million and/or a HI [non-cancerous] greater than or equal to 1:
Any industrial project within 1,000 feet of a sensitive receptor land use; A distribution center (40 or more trucks per day) within 1,000 feet; A major transportation project (50,000 or more vehicles per day) within 1,000 feet; A dry cleaner using perchloroethylene within 500 feet; and A gasoline dispensing facility within 300 feet.

As shown by the project description, the proposed project does not contain any of the uses that would require a health risk assessment. Additionally, the uses in the proposed development do not require a lot of deliveries and most of vehicle traffic would be tenants of the multi-family buildings, 4 guests of the hotel, or visitors to the commercial/restaurant uses. As such, no changes to the analysis are required.

The multi-family units would be constructed in accordance with all requirements of the California Building Code and Green Building Code along with applicable requirements of the AVAQMD (e.g., amount of VOC in coatings). The building code requires that buildings be energy efficient with appropriate insulation and tight fitting windows. This ensures the air within the building is clean with minimal pollutants in the air. The project is conditioned to utilize high-efficiency air filters due to the proximity of the site to the freeway. Additionally, multi-family residential buildings are built with an exhaust system that draws the stale indoor air out along with any emissions released from building products. As such, no changes to the Initial Study are warranted.

The appellant(s) also claims that the project is inconsistent with the City’s adopted Climate Action Plan. The City’s Climate Action Plan was adopted in March 2017 and contains a total of 61 projects across eight sectors to reduce greenhouse gas emissions from uses within the City. The project was analyzed for consistency with the applicable projects in the climate action plan and with the goals and policies contained in the City’s General Plan. The applicable policies from the general plan (3.3.1, 3.3.2, 3.3.3, and 3.3.4) are analyzed on pages 45 through 46 of the Initial Study. The applicable projects from the Climate Action Plan include bike lanes/pedestrian amenities (transportation), renewable energy (energy), recycled water lines/sensor technology (water), recycling incentives (waste), and xeriscaping/habitat acquisition (community).

Valley Fever
The appellant(s) claim that there is a significant impact with respect to Valley Fever and that the mitigation measure provided is insufficient to reduce these impacts to less than significant levels.

There is a detailed valley fever discussion contained within the Initial Study on pages 16 through

19. This includes a description of what valley fever is, how it is transmitted, the impacts of valley fever and how it is typically treated. The analysis also includes two mitigation measures to ensure that impacts to construction workers and nearby receptors would be less than significant.

The first mitigation measure is compliance with the Antelope Valley Air Quality Management District’s Rule 403 with respect to dust control. This rule contains specific requirements regarding dust control including requiring stabilized surfaces, dust control plans with construction watering, posted signage, and stopping of construction activities during high winds (25 miles per hour or higher).

The second mitigation measure is specific to Valley Fever and was developed in conjunction with the Los Angeles County Department of Public Health to minimize exposure to Valley Fever during construction activities and is specific to the conditions that exist in the Antelope Valley. This mitigation measure has been required of all development projects in the City of Lancaster since 2018.

The appellant states that the Valley Fever mitigation measure only requires the preparation of a handout and training for construction workers. The appellant further states that is deferred mitigation and is not allowed under CEQA. The appellant is incorrect in their assumptions. The 5 mitigation measure does require a handout and training for the construction workers, but it also identifies other specific items that must be done including requirements for personal protective equipment, dust control, separate eating areas, clean up areas, etc. The City also requires the workers and residents in the surrounding area to be notified of the future construction and provides them with information regarding Valley Fever and ways in which they can minimize their exposure. With implementation of the identified mitigation measures, impacts would be less than significant and no further response is necessary.

Noise
The noise analysis for the proposed project is based on information contained with the General Plan and the General Plan Master Environmental Assessment as well as the distance from the project site (property line) to the nearest occupied residences. Construction noise would be audible in the general area but would also blend with the noise from automobile traffic along Avenue L and 15th Street West as well as distance site noise from nearby commercial, residential, and medical uses. This construction noise would only occur during hours permitted by the Lancaster Municipal Code. Operational noise would be similar to noise generated by surrounding land uses; however, much of the noise generated on site would be blocked by the height of the hotel and multi-family residential buildings. These buildings along with the perimeter/site landscaping would provide a buffer between the noise sources on the site and the surrounding uses to the south and west. The project also includes construction noise best management practices/mitigation measures that are applied to all construction projects in the City.

Since a project specific noise study was not conducted and the details regarding construction are not known at this time (e.g., subterranean parking – is it going to be included, etc.), a noise mitigation measure was included to require a specific noise study to be prepared to ensure that all noise levels do not exceed 65 dBA at the property lines, even though the standard for mixed- use/commercial uses is 70 dBA. The mitigation measure includes specific performance standards that have to be met for the project prior to the issuance of any construction-related permits. Since performance standards were included in the mitigation measure, it does not constitute deferred mitigation. Therefore, no changes to the analysis are necessary.

Vehicle Miles Traveled
In July 2020, the City of Lancaster adopted standards and thresholds for analyzing projects with respect to vehicle miles traveled (VMT). A series of screening criteria were adopted and if a project meets one of these criteria, a VMT analysis is not required. These criteria are: 1) project site – generates fewer than 110 trips per day; 2) locally serving retail – commercial developments of 50,000 sf or smaller; 3) project located in a low VMT area – 15% below baseline; 4) transit proximity; 5) affordable housing; and 6) transportation facilities.

The appellants claim that the Initial Study did not fully analyze or mitigate the project’s VMT impacts. A VMT study was prepared for the project in accordance with the City’s adopted policies and standards. This study was reviewed and approved by the City’s traffic engineer. For mixed- use developments, each type of use is analyzed separately; as a result the 12,800 square feet of commercial/retail uses screens out of a VMT analysis under criteria 2 – locally serving retail – 6 commercial developments of 50,000 square feet of smaller. The hotel and multi-family residential uses were fully analyzed in the approved VMT study.

The study showed that the VMT generated by the multi-family residential uses would be more than 15% below the City’s adopted thresholds. Therefore, the VMT associated with this use would be less than significant. In order to reduce the VMT generated by the hotel to be 15% or more below the AVPA baseline, the hotel would need to reduce its VMT by 185.7 VMT.

On January 24, 2023, the City of Lancaster City Council adopted the Vehicle Miles Traveled Impact Fee Mitigation Program and certified the accompanying Final Program Environmental Impact Report, Findings, and Statement of Overriding Considerations. The VMT mitigation program allows developers to pay $150 per VMT to mitigate their VMT impacts and tier off of the Program EIR. Pursuant to LMC Section 15.67.070, Administration of fee and allowable uses, fees acquired as part of the VMT mitigation program shall only be expended for the transportation demand management strategies and VMT-reducing projects identified in the Final Program Environmental Impact Report for the Vehicle Miles Traveled Impact Fee Mitigation Program and corresponding nexus study. Future implementation of the transportation demand strategies and VMT-reducing projects would contribute towards reducing overall Citywide VMT. Based on the City’s adopted program, the developer would be required to pay a total of $27,855 to mitigate the hotel’s VMT impact. With payment of the fee, the project’s VMT impacts would be less than significant.

The City does not have a requirement for a developer to reduce the VMT for a project to zero particularly given the City’s large land area. Additionally, the project site is located in close proximity to medical, commercial uses, large park, and the Antelope Valley Transit Authority (AVTA) transit center. Therefore, no revisions to the Initial Study are necessary and impacts would be less than significant with payment of the required mitigation fee.

Transportation
The standard for determining transportation impacts in CEQA documents was changed in 2013 with the passage of Senate Bill (SB) 743. Effective July 1, 2020 all CEQA documents utilizing VMT to determine transportation impacts. As seen from the above discussion, the VMT impacts of the proposed project would be mitigated by paying into the City’s VMT Mitigation Program.

However, many jurisdictions still utilize traditional traffic studies and Level of Service to help determine what improvements may be necessary to ensure the smooth flow of traffic. A traffic study was prepared and reviewed by the City’s traffic engineer. Conditions of approval have been added to the project specifying roadway and signal improvements that are required as part of the project to ensure the safe and smooth operation of the surrounding street network.

Additionally, 15th Street West between Avenue L and Avenue M is currently a private roadway.

With the construction of the project, 15 th Street West along the project frontage would become public. During the public outreach meetings held with the surrounding community, one of the issues that was raised was traffic utilizing 15th Street West as a short-cut, thereby disrupting the 7 neighborhood. The applicant has agreed to place a remote operated gate across 15th Street West at the southern end of his property to reduce traffic cut-through. This requirement is included in the conditions of approval.

Public Utilities
The appellant(s) claim that the Initial Study does not fully address impacts to public utilities such as water, sewer, and electricity. The project site is located within the boundaries of the White Fence Farm Mutual Water Company. Water service to the development can be provided in accordance with the conditions and procedures of the water company. Wastewater treatment is provided by Los Angeles County Sanitation District #14 at the Lancaster Wastewater Reclamation facility.

This facility has a capacity of 18 million gallons per day (mgd) and averages approximately 13 mgd. The local sewer lines are maintained by the City and the trunk sewer lines are maintained by the District. The development will connect to the local lines for conveyance to the Districts’ trunk sewers which have capacity to handle the additional flow.

Electrical service lines are located along Avenue L which the proposed development would be able to connect to. All three utilities routinely evaluate the service needs of existing and future developments in order to provide service. Processes and requirements are in place with all the providers to facilitate connection to water, sewer, and electricity. Therefore, no changes to the Initial Study are required.

Energy
The appellant(s) claim that the Initial Study does not fully analyze the energy usage of the project and does not provide mitigation for energy consumption beyond what is required by the Building Code.

The Initial Study identifies the types of energy that would be consumed by the project during construction and operation along with regulatory codes that the development is required to comply with. The Building Code and the Green Building Code are updated everything three years with the goal of increasing the efficiency of buildings with respect to energy consumption. This includes specifying insulation standards, prohibiting the use of natural gas in residential structures, and increasing reliance on alternative energy.

The project would be required to comply with the requirements of the building code including roof top solar and EV charging stations/wiring for additional stations. There is no legal requirement that a development must exceed the requirements of the building code with respect to energy consumption. The project would comply with the code requirements in place at the time the building permits are issued. Additionally, all power would be obtained from Lancaster Choice Energy (LCE) in accordance with City requirements. LCE has two plans: ClearChoice and SmartChoice. ClearChoice meets or exceeds the state mandates for renewable energy and SmartChoice is 100% renewable energy. As such, the proposed development would utilize energy resources in an efficient manner and no modifications to the Initial Study are required. 8 Affordable Housing
The City has a current Housing Element that was adopted by the City Council and certified by the California Department of Housing and Community Development (HCD) in 2023. The appellant(s) claim that the project is inconsistent with the Housing Element of the General Plan as it does not provide any affordable housing. To substantiate their claim, they cite Policies H-1.1, H-1.2, and H-1.6, which states the following:

Policy H-1.1 Provide for adequate sites that will enable the production of 9,023 housing units through October 2029 to meet the demands of present and future residents, including an adequate number and range of new dwelling types affordable to extremely low-, very low-, low-, moderate-, and above moderate-income households.

Policy H-1.2 Encourage a mix of housing types are provided, including single- and multi- family housing within a variety of price ranges to provide a range of housing options for Lancaster residents.

Policy H-1.6 Encourage affordable mixed-use and multi-family residential housing developments on mixed-use zoned sites.

With the adopted and certified Housing Element, the City identified suitable sites to accommodate the 9,023 housing units, including affordable housing. The subject property is not one of these sites. None of the policies in the Housing Element or the requirements of Zoning Code specify that a certain percentage of the units in any housing development are required to be affordable.

Additionally, as indicated in the annual reports to HCD, the City is making substantial progress towards meeting its Regional Housing Needs Assessment (RHNA) numbers. Many housing developments have received certificate of occupancy within the past two years, including affordable housing developments, with several others under construction. As such, the proposed development is not required to provide affordable housing and is not inconsistent with the Housing Element.

General Plan Consistency
The appellant(s) claims that the project is inconsistent with the general plan designation for Non- Urban and with the policies identified in the General Plan.

The General Plan was adopted in 2009 based on information and input available between 2005 and 2008. However, General Plans are not stagnant documents and are continually updated to reflect the needs of the community and requirements from the State. For example, the Housing Element is required to be updated every eight years, the Safety Element and Circulation Element have been updated twice, and the Environmental Justice Element was adopted. The 2030 General Plan established an Urban Core with Avenue L being the southern boundary. Development is encouraged to occur within the Urban Core to the extent feasible. However, this does not mean that development cannot occur outside of the Urban Core. 9 The project site is located at the southwest corner of the Antelope Valley Freeway and Avenue L, with a mix of vacant land, residential (single family and high density residential), commercial, park, and medical uses in the immediate vicinity. Avenue L is a major arterial meant to move traffic efficiently from one side of the City to the other. The northern side of Avenue L is located within the Urban Core and the southern side of Avenue L is located just outside of it. However, the needs and uses along Avenue L have been changing over the past 10 years with increased commercial uses being developed/approved along the corridor from 10th Street West towards 40th Street West, including the gas station development at 20th Street West and Avenue L, mini-storage facility approval at 22 nd Street West and the Raising Cane’s/Quick Quack development at 10 th Street West and Avenue L. As a result, both sides of Avenue L are more commercial in nature and will continue to evolve in that manner.

While the proposed development would not be consistent with the existing Non-Urban land use designation, the applicant has requested a general plan amendment to change the designation to Mixed Use and a zone change to Mixed Use – Commercial. With the approval of these changes, the proposed project would be consistent with the General Plan and would be compatible with the surrounding single-family/high density residential, commercial and medical uses along Avenue L.

Additionally, the appellants claim that the proposed project is not consistent with the policies identified in the general plan. The Initial Study analyzed the project’s consistency with applicable general plan policies on pages 44 through 48. With approval of the general plan amendment and zone change, the project would be consistent with the general plan’s policies. Not all policies in the general plan were listed in the analysis as not all policies apply to the project. Some policies are directives for City staff and others to do not apply as they are for different types of development or are location specific (e.g., within an airport land use plan, pertain to farmland of statewide importance, etc.). Therefore, no change to the Initial Study general plan analysis is required.

Miscellaneous
Several other issues were generally mentioned as having significant impacts in one of the appeals but no specific impact was identified for these resource areas. The following summarizes the potential less than significant impacts under these resource areas. Aesthetics – The project site is not located along a State scenic highway. While the development would change the look of the site from an undeveloped vacant lot to a mixed- use development, the buildings’ looks and heights would be compatible with the surrounding uses in the general area including the Kaiser facilities, multi-family developments, and commercial uses. The buildings would also be consistent with the adopted Design Guidelines. The site is located adjacent to freeway and Avenue L which are both busy roadways resulting in moderate ambient lighting in the area. While the site would generate additional lighting from the uses on the site, all lighting would be screened and focused downward.
Hydrology – The project site is not located in a flood zone. Per the FEMA flood map 06037C0420F a portion of the site is located in the X zone, which is outside both the 100 and 500 year flood zones, and a portion of the site is zoned X-shaded, which is within the 500-year flood zone but outside of the 100-year flood zone. Neither of these are designated 10 as a special flood hazard area which triggers additional requirements. Additionally, the project has been conditioned to install drainage improvements, including master planned facilities.
Wildfire – The project site is not located in or adjacent to a Fire Severity Hazard zone based on the currently adopted fire maps. Additionally, the project site is located within the service boundaries of Fire Station No. 134 located at 43225 25th Street West with additional support available from other fire stations.

ATTACHMENT TO PC RESOLUTION NO. 24-22
GENERAL PLAN AMENDMENT NO. 21-001
ZONE CHANGE NO. 21-001
TENTATIVE TRACT MAP NO. 24-001 (84317)
CONDITIONAL USE PERMIT NO. 21-001

CONDITIONS LIST
APRIL 21, 2025 (REVISED JULY 8, 2025)

GENERAL

1. Unless otherwise indicated herein, the development of the site shall be in substantial conformance with approved site plans on file in the Community Development Department.

2. The approval of this tentative map shall expire 24 months from the date of conditional approval.

The applicant may file for three one-year extensions of the conditionally approved map prior to the date of expiration. If such extension is requested, it must be filed no later than 60 days prior to expiration.

3. This Conditional Use Permit must be used within two (2) years from the date of approval; otherwise the Conditional Use Permit will expire. The applicant may, not less than sixty (60) days prior to the expiration date, request a total of three one-(1)-year extensions in writing to the Community Development Director. Modifications to the plan, including timing of on- and off-site improvements that do not raise significant new issues or extend the overall time frame beyond the approval period may be approved by the Community Development Director.

Note: Issuance of building permits, installation of off-site improvements, and grading of the site do not constitute “use” of the conditional use permit. Under the Zoning Ordinance, construction or other development authorized by the conditional use permit must have commenced.

Generally, the City requires that the slab of a major building in the project be poured and inspected in order to consider the permit used, although the circumstances of each case may vary depending on the land use involved. For the sale of alcohol within an existing building, the City generally requires that a license has been issued by the State of California Alcoholic Beverage Control to constitute “use” of the conditional use permit.

4. The applicant shall defend, indemnify, and hold harmless the City, its elected officials, officers, employees and representatives from any claim, action, or proceeding against the City or its elected officials, officers, employees and representatives to attack, set aside, void, or annul, an approval of the City concerning this subdivision, which action is brought within the time period provided for in Section 66499.37 of the Subdivision Map Act, or an approval of the City concerning this site plan review and the use(s) and development permitted by its approval. The City shall promptly notify the subdivider of any claim, action, or proceeding and shall cooperate fully in the defense; this condition shall not be imposed if the City fails to promptly notify the subdivider or fails to cooperate fully in the defense.

5. All requirements of the Municipal Code and the specific zoning of the subject property must be complied with unless otherwise set forth in the permit or shown on the approved site plan.

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6. All construction and/or installation of improvements shall be undertaken to the specification of the Lancaster Municipal Code.

7. The applicant shall contact the Los Angeles County Fire Department to determine the improvements that may be required to protect the property from fire hazards and shall provide and install at their expense such improvements as may be deemed necessary by the Los Angeles County Fire Department. Fire protection improvements shall be completed to the satisfaction of the Public Works Director prior to certification of completion and occupancy of the subject buildings.

8. The following items/plans shall be submitted to the Public Works and Community Development Departments for concurrent review and approval prior to issuance of permits:
a. Lighting Plan
b. Building Plan
c. Grading Plan
d. Landscape Plan
e. Trash Enclosure Plan

9. All necessary permits shall be obtained from the Community Development and Public Works Departments prior to any construction, remodeling, or replacement of buildings or other structures.

10. Prior to building permit issuance, the applicant shall pay all applicable development fees including, but not limited to, the following: 1) Los Angeles County Sanitation District Sewer Connection Fee; 2) Interim School Facilities Financing Fee; 3) Traffic Signal Fee; 4) Planned Local Drainage Facilities fee; 5) Dwelling Unit Fee; 6) Traffic Impact Fees; 7) Urban Structure Program Fee (Park Development Fee, Administrative Office Fee, Corporate Yard Fee, and Operations Impact Fee, etc.); and 8) Landscape Fee.

11. If any provision of this permit is held or declared to be invalid, the permit shall be void, and the privileges granted hereunder shall lapse.

12. It is further declared and made a condition of this permit that if any condition hereof is violated, or if any law, statute, or ordinance is violated, the permit shall be suspended and the privileges granted hereunder shall lapse provided that the applicant has been given written notice to cease such violation and has failed to do so within the time period indicated in the notice.

13. Prior to building/grading permit issuance, whichever comes first, the applicant shall submit a geotechnical report as detailed in Chapter 18 of the latest edition of the California Building Code and as required by the Public Works Department. The geotechnical report shall be completed in accordance with the County of Los Angeles, Department of Public Works, Manual for Preparation of Geotechnical Reports.

14. Prior to occupancy of any buildings or structures, the permittee shall request, no less than forty- eight (48) hours in advance, that on-site inspection be made by the Community Development Conditions List
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Department to verify that development of the property has occurred in conformity with conditions as enumerated in this permit.

15. If the project is developed in phases, all the development requirements shall be met for each phase including parking, landscaping, trash enclosures, drainage, etc. The developer shall provide a phasing plan and phasing condition/mitigation measure matrix to the Community Development Department for approval prior to the issuance of construction-related permits.

16. The applicant shall be responsible for notifying the Community Development Department in writing of any change in ownership, designation of a new engineer, or change in the status of the developer, within thirty (30) days of said change.

17. Expansion or intensification of the use beyond the approval specified herein would require subsequent review and possible application for amendment. The Community Development Director is authorized to approve modifications to the site plan provided such modifications do not substantially change the intent of the approved use, avoid issues raised at the public meeting, or raise new issues not previously addressed.

18. An encroachment permit shall be obtained from the Public Works Department prior to doing any work within the public right-of-way.

19. The first check of the final map shall be submitted at least 180 days prior to the expiration date of the tentative map.

20. Prior to permit issuance, the applicant by agreement with the Public Works Director, may guarantee installation of improvements as determined by the Public Works Director through faithful performance bonds, letters of credit, or any other acceptable means acceptable to the Public Works Director, Finance Director, and/or City Attorney.

FEES, ASSESSMENTS, AND ANNEXATIONS

21. Prior to recordation of the final map and/or building occupancy, the property shall be annexed into the Lancaster Drainage Maintenance District.

22. Prior to recordation of the final map and/or building occupancy, the property shall be annexed into the Lancaster Lighting Maintenance District.

23. Prior to recordation of the final map and/or building occupancy, the property shall be annexed into the Lancaster Sewer Maintenance District.

24. Prior to recordation of the final map and/or building occupancy, the property shall be annexed into the Lancaster Landscape Maintenance District.

25. The applicant is hereby advised that this project is subject to 1 st year’s assessment fees for the following maintenance districts, as applicable, prior to issuance of related permits (grading, building, sewer, etc.): 1) Lancaster Drainage Maintenance District, 2) Lancaster Lighting Maintenance District, 3) Lancaster Sewer Maintenance District, and 4) Lancaster Landscape Maintenance District.

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26. Prior to site plan approval, the applicant shall pay all required CEQA VMT analysis and/or Local Transportation Assessment review fees as outlined under II-Public Works, Section 2: Engineering Fees, Traffic Study Review in the City’s most current Fee Schedule.

STREETS

27. Prior to issuance of building permit, the applicant shall dedicate sidewalk easements sufficient to encompass ADA requirements for sidewalks installed with drive approaches.

28. Provide letter(s) of slope easement(s) as directed by the Public Works Director.

29. Prior to building occupancy, the applicant shall repair or replace any broken, damaged, and/or non-ADA compliant pavement, curb, gutter, and sidewalk on streets within or abutting the project to street centerline to the satisfaction of the Public Works Director.

30. The applicant shall comply with City Municipal Code, Chapter 13.20, Article II, entitled Installation/Relocation for New/Expanded Development of Overhead Utilities as directed by the Public Works Director. (Ordinance No. 361)

31. The proposed project shall comply with the City of Lancaster Holiday Moratorium Policy. No excavation or work shall occur within the public right-of-way on Primary Arterials, Secondary Arterials, and Collector Streets between November 15th and January 2nd, except work pertaining to public safety or with the written permission of the City Manager. Work commenced prior to the restriction period must be in such a condition that it will be resurfaced prior to November 15th.

TRAFFIC IMPROVEMENT PLANS

32. Prior to issuance of the street improvement encroachment permit, the applicant shall obtain approval of a signing and striping plan. The signing and striping plan shall be completed in accordance with all City of Lancaster standards, as directed by the Public Works Director.

33. Prior to issuance of the street improvement encroachment permit, the applicant shall obtain approval of a traffic signal plan. The traffic signal plan shall be completed in accordance with all City of Lancaster standards, as directed by the Public Works Director.

34. Prior to issuance of the street improvement encroachment permit, the applicant shall obtain approval of temporary traffic control plan and allowable working hours, as directed by the Public Works Director.

STREET IMPROVEMENTS

35. Prior to issuance of building permits, improve and offer for dedication:
15 th Street West at 66 feet of an ultimate 80-foot right-of-way Conditions List
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36. Prior to issuance of building permits, the applicant shall dedicate a corner cutoff at all intersections, as defined in the City of Lancaster Engineering Design Guidelines Section 2.2.10.6.1 (residential) or Section 2.2.10.6.2 (arterial).

37. Prior to building occupancy, the applicant shall construct the following street improvements within/along the frontage of the project site, as directed by the Public Works Director:

Street Name
Curb &
Gutter
Base &
Paving
Street
Lights
Street
Trees
Sidewalk
(5’min)
Raised
Median
Painted
Median
Class I/IV
Bike Lane
Class II
Bike Lanes
LMD
Easement
Avenue L X X X X X X
15th Street West X X X X X X

38. Prior to issuance of building permits, improve 15 th Street West to include:
7-foot painted median
19 feet of pavement from the painted median to the top of curb 14-foot meandering sidewalk

39. Prior to building occupancy, the applicant shall construct base and paving, if existing conditions are determined to be substandard or do not meet City of Lancaster current pavement condition standards, or if this condition is applied to a new facility. The base and paving shall be constructed along the property frontage up to centerline and include additional improvements beyond centerline as follows:
7-foot painted median and 19 feet of pavement on 15 th Street West.

40. Prior to building occupancy, the applicant shall construct additional pavement as required to transition to the existing pavement in accordance with City of Lancaster Engineering Design Guidelines (Section 2.2.10.24), to the satisfaction of the Public Works Director.

41. Prior to building occupancy, the applicant shall install conduit, pull rope, and pull boxes along regional, primary and secondary arterials to the nearest arterial intersection to be used for future Traffic Signal Communication Interconnect. The interconnect system shall be installed in accordance with the specifications approved by the Traffic Section, to the satisfaction of the Public Works Director.

42. Prior to occupancy, the applicant shall design and construct City owned and maintained street lighting systems (LS-3 rate schedule). The Developer’s engineer shall prepare all plans necessary to build said street lighting system in accordance with Southern California Edison and City of Lancaster standards.

43. Prior to issuance of building permits, the applicant shall dedicate the right to restrict direct vehicular ingress and egress on all streets having a project volume of 2,000 vehicle trips each day Conditions List
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and within 100 feet of any secondary or primary arterial, on the Tract Map or by separate document.

44. Prior to building occupancy, a reciprocal access agreement shall be recorded for all driveways on 15th Street West to provide access to all parcels located immediately to the east.

45. If at any time during the operation of any business on this parcel there are frequent and/or persistent situations where vehicles attempting to access said business queue back onto a public facility, the property/business owner is required to submit a mitigation plan to the City. The plan will be implemented and monitored by and at the expense of the property/business owner until conditions are deemed acceptable by the City Traffic Engineer.

46. All traffic signal improvements shall be constructed to the satisfaction of the Public Works Director.

47. Prior to issuance of the street improvement encroachment permit, the applicant shall obtain approval of a traffic signal plan. The traffic signal plan shall be completed in accordance within all City of Lancaster standards, as directed by the Public Works Director.

48. Prior to building occupancy, the applicant shall install all traffic signal upgrades at the following location:
Southeast corner of the intersection of Avenue L and 15 th Street West Any infrastructure or operating equipment deemed necessary due to the addition of the southern leg of the intersection.

49. Applicant will be responsible for the installation of all pavement transitions, pavement markings, signage and street lighting deemed necessary for the installation of the south leg of the intersection of 15th Street West and Avenue L.

50. Prior to final certificate of occupancy, the applicant shall pay a deposit to cover the cost for the City to conduct a traffic signal retiming study.

51. Prior to building occupancy, the applicant shall provide and install street name signs, as directed by the Public Works Director.

52. Prior to building occupancy, the applicant shall design and construct ADA-compliant curb ramps at the following locations, to the satisfaction of the Public Works Director:
Southeast corner of Avenue L and 15 th Street West

53. The curb ramp(s) shall comply with the requirements of Title II of the American with Disabilities Act (ADA) relating to curb ramps and pedestrian crossings.

54. Prior to building occupancy, the applicant shall construct all operational or safety improvements identified in the approved Local Transportation Assessment Report.

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55. Prior to final certificate of occupancy of each phase, the applicant shall construct or pay a fair- share contribution for all improvements as identified in the approved CEQA VMT Analysis / Local Transportation Assessment Report required to adequately serve this development, to the satisfaction of the Public Works Director.

DRIVEWAY REQUIREMENTS

56. Prior to issuance of the street improvement encroachment permit, the applicant shall show on the street plan drive approaches using a modified commercial driveway design (SPPWC 110-2, Type C or equivalent) with a minimum radius of 15 feet and that will provide a street/drive approach transition with a maximum algebraic grade difference of 10%. Construction details shall be shown on the street plan providing a transition no greater than this maximum.

57. Prior to building occupancy, the applicant shall remove the existing driveway on Avenue L fronting the project site and replace it with sidewalk.

58. Prior to building occupancy, the applicant shall design and construct ADA “walk arounds” at all driveway locations on 15th Street West, to the satisfaction of the Public Works Director.

DRAINAGE/GRADING

59. Provide for contributory drainage from adjoining properties and return drainage to its natural conditions or secure off-site drainage acceptance letters from affected property owners.

60. Prior to issuance of a grading permit, the applicant shall submit a grading plan consistent with the approved site plan and conditions of approval. The grading plan shall be based on an approved drainage area study and hydrology/hydraulic report, detailed recent topographic survey, and a detailed engineering soils report specifically approved by the geologist and/or soils engineer that addresses all submitted recommendations.

61. Prior to grading permit issuance, the applicant shall obtain approval of the final hydrology/hydraulic study. The final drainage facilities shall be based on the approved hydrology/hydraulic study and will be designed based on the City of Lancaster Engineering Design Guidelines Policies and Procedures Sections 2.7 and 3, and/or to the satisfaction of the Public Works Director. Any on-site and/or off-site mitigation measures required by the approved hydrology/hydraulic study shall be constructed prior to first occupancy.

62. Prior to first occupancy, the applicant shall construct all drainage improvements required by the City of Lancaster’s Master Plan of Drainage Facilities (MPDF) when warranted by upstream development and/or if identified as “critical” by the Master Plan of Drainage or City Engineer to the satisfaction of the Public Works Director. This may be include but not be limited to a 42-inch reinforced concrete pipe(s) in 15 th Street West. The hydrology/hydraulic report prepared for the project shall provide calculations demonstrating the proposed improvements will be of sufficient size and capacity to mitigate and convey interim and ultimate watershed flow from the project site and surrounding off-site tributary areas. The hydrology/hydraulic report shall also include analyses to determine if and when the MPDF will be warranted and identify any interim MPDF Conditions List
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and/or local improvements required with the project. The applicant is hereby advised that this project is subject to Planned Local Drainage Facilities Fees at the time of building permit issuance as part of their fair share of future cost. If ultimate MPDFs are warranted at the time of development, the applicant may enter into a reimbursement agreement with the City and be credited fees per the City’s Drainage Reimbursement Policy.

63. Prior to building occupancy, all drainage facilities are to be constructed and approved prior to occupancy of any structure within the project to the satisfaction of the Public Works Director. If the project is phased, all drainage facilities required for each phase will be constructed and approved prior to occupancy of any structure within that phase.

64. Prior to final map approval or grading permit issuance, the streets shall be designed to avoid creating sump conditions to the satisfaction of the Public Works Director. If a sump condition is unavoidable, design streets so that secondary overflow is through the streets and, as needed, design and install redundant drainage systems (i.e., additional storm drain line and catch basin systems). Secondary overland overflow shall not be allow through lot easements. Secondary overland overflow shall be allowed through fee title dedicated drainage paths, paseos or other pedestrian walkways and passageways.

65. The project shall comply with the Best Management Practices (BMPs) of the National Pollutant Discharge Elimination System (NPDES) and all NPDES Permit Requirements.

66. Prior to building occupancy, install BMPs to treat first flush.

67. Prior to issuance of any construction related permits (grading, building, etc.), a Dust Control Plan shall be prepared and submitted to the Antelope Valley Air Quality Management District (AVAQMD) in accordance with Rule 403 of the AVAQMD. An approved copy of the Dust Control Plan shall be submitted to the Community Development and Public Works Departments for residential projects of 10 acres and larger and for commercial/industrial projects of 5 acres and larger. In lieu of an approved plan, a letter from the AVAQMD waiving this requirement shall be submitted.

68. Prior to commencing hauling operations for this project, the applicant shall obtain a hauling permit for an import/export of > 100 CY of hauling material to/from the project within the public right-of-way including the export/receiving site and an exhibit of the proposed haul route. The applicant is responsible to obtain approval from all applicable agencies for the material hauling operation. The designated haul route shall be designed to the requirements of the City of Lancaster Design Guidelines, Standards, and Municipal Code and to the satisfaction of the Public Works Director.
a. The applicant shall comply with the following requirements for the material hauling operation:
i. The hours of operation shall be approved by the Public Works Director. ii. Provide non-stop street sweeping service on all City streets along the haul route during all hours of work to the satisfaction of the Public Works Director.

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iii. Provide traffic control and flagging personnel along the haul route to the satisfaction of the Public Works Director.
iv. When required by the Public Works Director, the applicant shall post a security to serve as surety of repair in the event facilities within the City right-of-way are adversely impacted by the hauling operations.
b. Prior to building occupancy/release of security, the applicant shall repair any pavement damaged by the material hauling operation to the satisfaction of the Public Works Director. The security will not be reduced or released or building occupancy given until the completion of the repair work. The limits of the road repairs shall be consistent with the approved haul route and determined by the Public Works Director.

SEWER

69. Prior to issuance of a sewer permit, the applicant shall submit a sewer plan consistent with the approved site plan and conditions of approval. The sewer plan shall be based on an approved Sewer Area Study.

70. Prior to sewer plan/lateral connection approval, and/or sewer encroachment permit issuance, the applicant shall submit a public sewer plan consistent with the approved site plan and conditions of approval. The sewer plan shall be based on an approved Sewer Area Study.

71. Prior to sewer plan/lateral connection approval, and/or sewer encroachment permit issuance, whichever comes first, the applicant shall obtain approval of the final sewer area study. The final sewer facilities shall be based on the approved sewer area study and will be designed based on the City of Lancaster Engineering Design Guidelines Policies and Procedures Section 2.4, and/or to the satisfaction of the Public Works Director. Any on-site and/or off-site mitigation measures required by the approved sewer area study shall be constructed prior to first occupancy.

72. Prior to building occupancy, approval of this project is contingent upon the installation and dedication of local main line sewers and separate laterals to serve each structure at such time as the permanent structures are constructed on the site.

73. Prior to sewer plan approval, the streets shall be designed to avoid creating sump conditions to the satisfaction of the Public Works Director. Local main line sewers shall not be allowed through lot easements. Local main line sewers shall be allowed through fee title dedicate drainage paths, paseos, or other pedestrian walkways and passageways.

WATER

74. The project shall be served by adequately sized water system facilities, including fire hydrants, of sufficient size to accommodate the total domestic and fire flows required for the land division.

Domestic flows required are to be determined by the Public Works Director. Fire flows required are to be determined by the Fire Chief.

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75. There shall also be filed with this project a statement from the water purveyor indicating that water service shall be provided to each lot and that the proposed water mains and any other required facilities will be operated by the purveyor and that under normal operating conditions the system will meet requirements for the land division.

76. Per the direction of the Community Development Director and the Public Works Director, the applicant shall be required to comply with all Ordinances in effect at the time of project construction to address the balance of water supply to water demand.

77. In order to obtain a conditional will-serve letter, the Project applicant must secure permanent water supply entitlements sufficient to meet the Project’s annual water demands as determined by the White Fence Farms Mutual Water Company (District). This entitlement may be secured through entering an agreement with the District to purchase new State Water Project Table A or other permanent water supply through the Antelope Valley-East Kern Water Agency.

78. In addition to the condition above, the District may require that: (1) various charges/fees be paid by the owner/developer of the property; (2) on-site and off-site water system facilities be installed by a State licensed contractor retained by the owner/developer, and inspected and accepted by the District, using plans prepared by a licensed engineer that are reviewed by the District; or (3) a combination of (1) and (2). Once constructed to the satisfaction of the District, the water system facilities are to be dedicated gratis to the District for subsequent operation and maintenance.

COMMUNITY DEVELOPMENT

79. The applicant is hereby advised that the use of any signs, strings of pennants, banners or streamers, clusters of flags and similar attention-getting devices are prohibited, except where there has been prior written approval from the Community Development Department.

80. Elevations and architectural details of the future buildings are subject to review and approval by the City of Lancaster Community Development Department to ensure that they are compatible with the established architectural design guidelines. This includes, but is not limited to, architectural style, color, exterior materials, material and type of walls. The applicant shall provide 360-degree architectural treatments for all proposed buildings.

81. Three (3) copies of a signage plan shall be submitted for approval by the Community Development Department at the time of building permit issuance. Such plan shall be comprehensive and shall include location, height, square-footage, method of attachment, construction materials and colors of each sign proposed. The signs shall be in compliance with the Lancaster Municipal Code and Design Guidelines.

82. All mechanical equipment, both rooftop and ground-mounted, shall be screened from view.

83. Roof access ladders shall be located and accessed from interior to the building. Roof access ladders shall not be located on the exterior of the building.

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84. All electrical equipment shall be located interior to the building and shall not be located in attached electrical closets.

85. Any future sales of alcohol shall require additional approvals from the Community Development Department.

86. The applicant shall install high-efficiency air filters in all multi-family residential units.

87. Additional landscaping shall be provided throughout the outdoor patio and pool areas of the multi-family residential buildings, clubhouse building, and any outdoor dining patios of any future commercial use.

88. The applicant shall work with the White Fence Farms Mutual Water Company to secure the water easement located south of the project site through a mutually agreeable method (e.g., fencing, etc.) to minimize the potential for damage to the infrastructure.

89. The applicant shall work with the surrounding community members, including the White Fence Farms Neighborhood Watch, to provide a remotely operated gate on 15 th Street West at the southern end of the project site. The proposed gate shall be reviewed and comply with all City of Lancaster and Los Angeles County Fire Department requirements and standards prior to installation.

LANDSCAPING

90. Prior to landscape encroachment permit, landscape plans shall be prepared in accordance with Ordinance No. 1070 and submitted to the Development Engineering Section of the Public Works Department, along with required plan check fees, for review and approval prior to the installation of landscaping or irrigation systems. Such plans are to be incorporated into development of the site and shall show size, type, and location of all plants, trees, and irrigation facilities.

91. Prior to building occupancy, developer shall install a “purple pipe” irrigation system in all landscape maintenance districts to provide for future connection to a recycled water system to the satisfaction of the Public Works Director.

92. Landscape materials, once approved, shall be maintained in good condition in perpetuity.

OTHER

93. Prior to first issuance of building permit, adjust lots (Assessor Parcel Numbers 3109-026-032, - 040, -042, and -044) to ensure structures are not crossing lot lines and meet setbacks. Applicant shall file and record separate instrument such as final map or lot line adjustment.

94. The applicant shall pay a fee to the City of Lancaster in the sum of $770.00 per gross acre, to be held in the biological mitigation fund as established by the City Council. Payment of said fee shall occur prior to Final Map for Parcel/Tract Maps and prior to or concurrent with the approval of a grading permit for all other projects. Additionally, should the applicant be required to pay Conditions List
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mitigation fees under the California Department of Fish and Wildlife, these fees can be deducted from the amount collected by the City of Lancaster.

95. Prior to first certificate of occupancy, the applicant shall record a covenant for easement and/or a reciprocal access easement and maintenance agreement for all shared driveways and drive aisles, private drainage devices, and common landscaping maintenance areas, within the project site and along the property frontage as directed by the Public Works Director. This condition may be satisfied by incorporating the appropriate provisions into the CC&Rs.

96. Prior to first certificate of occupancy, the applicant shall obtain approval from the Public Works Director and the City Attorney for Covenants, Conditions, and Restrictions (CC&Rs) for this development. The applicant shall reimburse the City for the City Attorney’s review fee. The CC&Rs shall grant the City the authority to review and approve/disapprove amendments (including dissolution) of the CC&Rs/association. The CC&Rs shall grant the City the right (though not the obligation) to enforce the CC&Rs (at a minimum those provisions related to City-required items).

97. Prior to first certificate of occupancy, the applicant shall establish a Property/Home Owners’ Association (POA/HOA), or similar entity, to ensure the continued maintenance of all shared/common lots, and private drainage devices.

ENVIRONMENTAL/MITIGATION MEASURES

98. Prior to ground disturbance activities, the project operator shall provide evidence to the Community Development Director that the project operator and/or construction manager has developed a “Valley Fever Training Handout”, training, and schedule of sessions for education to be provided to all construction personnel. All evidence of the training session materials, handout(s) and schedule shall be submitted to the Community Development Director within 24 hours of the first training session. Multiple training sessions may be conducted if different work crews will come to the site for different stages of construction; however, all construction personnel shall be provided training prior to beginning work. The evidence submitted to the Community Development Director regarding the “Valley Fever Training Handout” and Session(s) shall include the following:
A sign-in sheet (to include the printed employee names, signature, and date) for all employees who attended the training session.
Distribution of a written flier or brochure that includes educational information regarding the health effects of exposure to criteria pollutant emissions and Valley Fever. Training on methods that may help prevent Valley Fever infection. A demonstration to employees on how to use personal protective equipment, such as respiratory equipment (masks), to reduce exposure to pollutants and facilitate recognition of symptoms and earlier treatment of Valley Fever. Where respirators are required, the equipment shall be readily available and shall be provided to employees for use during work. Proof that the demonstration is included in the training shall be Conditions List
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submitted to the county. This proof can be via printed training materials/agenda, DVD, digital media files, or photographs.

The project operator also shall consult with the Los Angeles County Public Health to develop a Valley Fever Dust Management Plan that addresses the potential presence of the Coccidioides spore and mitigates for the potential for Coccidioidomycosis (Valley Fever). Prior to issuance of permits, the project operator shall submit the Plan to the Los Angeles County Public Health for review and comment. The Plan shall include a program to evaluate the potential for exposure to Valley Fever from construction activities and to identify appropriate safety procedures that shall be implemented, as needed, to minimize personnel and public exposure to potential Coccidioides spores. Measures in the Plan shall include the following:
Provide HEP-filters for heavy equipment equipped with factory enclosed cabs capable of accepting the filters. Cause contractors utilizing applicable heavy equipment to furnish proof of worker training on proper use of applicable heavy equipment cabs, such as turning on air conditioning prior to using the equipment. Provide communication methods, such as two-way radios, for use in enclosed cabs. Require National Institute for Occupational Safety and Health (NIOSH)-approved half-face respirators equipped with minimum N-95 protection factor for use during worker collocation with surface disturbance activities, as required per the hazard assessment process.
Cause employees to be medically evaluated, fit-tested, and properly trained on the use of the respirators, and implement a full respiratory protection program in accordance with the applicable Cal/OSHA Respiratory Protection Standard (8 CCR 5144). Provide separate, clean eating areas with hand-washing facilities. Install equipment inspection stations at each construction equipment access/egress point. Examine construction vehicles and equipment for excess soil material and clean, as necessary, before equipment is moved off-site.
Train workers to recognize the symptoms of Valley Fever, and to promptly report suspected symptoms of work-related Valley Fever to a supervisor. Work with a medical professional to develop a protocol to medically evaluate employees who develop symptoms of Valley Fever.
Work with a medical professional, in consultation with the Los Angeles County Public Health, to develop an educational handout for on-site workers and surrounding residents within three miles of the project site, and include the following information on Valley Fever: what are the potential sources/ causes, what are the common symptoms, what are the options or remedies available should someone be experiencing these symptoms, and where testing for exposure is available. Prior to construction permit issuance, this handout shall have been created by the project operator and reviewed by the project operator and reviewed by the Community Development Director. No less than 30 days prior to any work commencing, this handout shall be mailed to all existing residences within a specified radius of the project boundaries as determined by the Community Conditions List
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Development Director. The radius shall not exceed three miles and is dependent upon the location of the project site.
When possible, position workers upwind or crosswind when digging a trench or performing other soil-disturbing tasks.
Prohibit smoking at the worksite outside of designated smoking areas; designated smoking areas will be equipped with handwashing facilities. Post warnings on-site and consider limiting access to visitors, especially those without adequate training and respiratory protection.
Audit and enforce compliance with relevant Cal OSHA health and safety standards on the job site.

99. The project applicant shall obtain a Western Joshua Tree Conservation Act permit from the California Department of Fish and Wildlife to remove the Joshua trees on the project site. As part of obtaining the Western Joshua Tree Act Conservation permit, the project applicant shall follow all measures outlined in the executed permit and pay all mitigation fees identified in the Western Joshua Tree Conservation Act. A copy of the fully executed permit shall be provided to the City of Lancaster prior to the issuance of any construction-related permits. 100. The project applicant shall comply with the conservation measures identified in the Western Joshua Tree Conservation Plan upon adoption by the California Fish and Game Commission, to the extent feasible.
101. A nesting bird and raptor survey shall be conducted by a qualified biologist within 7 days prior to the start of construction/ground disturbing activities. The qualified biologist shall survey the entire project site and areas within a biologically defensive buffer zone surrounding the project site. If project activities are delayed or suspended for more than 7 days during the nesting season, the nesting bird and raptor survey shall be repeated. If active bird nests are identified during the survey, the species shall be identified and a no-disturbance buffer shall be established around the active nest. At a minimum, a buffer of 500 feet around active raptor nests and 100 feet around migratory bird species nests shall be established. Personnel working on the project, including all contractors working onsite, shall be instructed on the presence of nesting birds, restricted areas, and adherence to no-disturbance buffers. A qualified biologist shall periodically monitor any active bird nests to determine if project-related activities occurring outside the “no-disturbance” buffer disturbs the birds and if the buffer shall be increased. Once the young have fledged and left the nest, or the nest otherwise becomes inactive under natural conditions, project activities within the “no-disturbance” buffer may occur following an additional survey by the qualified biologist to search for any new bird nests in the restricted areas. 102. A pre-construction burrowing owl clearance survey shall be conducted no more than 14 days prior to any vegetation removal or ground disturbing activities to avoid impacts to burrowing owls and/or occupied burrows. The pre-construction clearance survey shall be conducted by a qualified biologist and in accordance with the methods outlined in the Staff Report on Burrowing Owl Mitigation (CDFG 2012). Documentation of surveys and findings shall be submitted to the City of Conditions List
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Lancaster for review and file. If no burrowing owls or occupied burrows are detected, project activities may begin, and no additional avoidance and minimization measures shall be required.

If an occupied burrow is found outside, but within 500 feet, of the development footprint, the qualified biologist shall establish a “no-disturbance” buffer around the burrow location(s). The size of the “no-disturbance” buffer shall be determined in consultation with CDFW and be based on the species status (i.e., breeding, non-breeding) and proposed level of disturbance. If an occupied burrow is found within the development footprint, the qualified biologist shall prepare an Impact Assessment and Burrowing Owl Mitigation Plan in accordance with CDFW’s Staff Report on Burrowing Owl Mitigation. The project proponent shall contact CDFW to develop appropriate mitigation and management procedures and a final Burrowing Owl Mitigation Plan shall be submitted to the City and CDFW for review and approval prior to project activities.

If burrowing owl presence is confirmed, the Project proponent shall offset impacts by acquiring CDFW-approved mitigation lands for the species. The potential mitigation land shall have the following: 1) have presence of burrowing owl; 2) replace the impacted burrowing owl habitat area at a minimum of 2:1 ratio to ensure no net loss of habitat; and 3) be of equivalent or greater habitat value than that of the project site. Prior to acquisition of potential mitigation land, the project proponent shall provide CDFW with the appropriate documentation for property eligibility. Requested documentation may include, but is not limited to, a biological report, preliminary title report, mineral risk assessment report, and Phase I Environmental Site Assessment report. Following CDFW written approval of potential mitigation land, the project proponent shall protect the land in perpetuity under a conservation easement dedicated to a local land conservancy or other appropriate entity that has been approved to hold and manage mitigation lands pursuant to Assembly Bill 1094. Recordation of the conservation easement shall occur prior to commencement of project activities. An appropriate endowment, to be determined by CDFW, shall also be provided for the long-term monitoring and management of mitigation lands.
103. Within 72 hours of the start of project-related activities, a qualified biologist with the appropriate handling permits shall conduct a survey to determine presence of the northern California legless lizard. The qualified biologist shall survey the proposed impact areas and a 50-foot buffer. Surveys shall incorporate appropriate methods to detect these species, including individuals that could be concealed in burrows, beneath leaf litter, or in loose soil prior to any project activities in areas that have or may have the potential to support these species. If any special-status species is found, the qualified biologist shall contact CDFW and the species shall be passively ushered out of harm’s way to an area that is unaffected by the project. If the project requires SCC to be removed, disturbed, or otherwise handled, the qualified biologist shall obtain all appropriate permits and prepare a species-specific list (or plan) of proper handling and passive relocation protocols. The list (or plan) of protocols shall be implemented during project construction. 104. In the event that cultural resources are discovered during project activities, all work in the immediate vicinity of the find (with a 60-foot buffer) shall cease and a qualified archaeologist meeting Secretary of Interior standards shall be hired to assess the find. Work on the other Conditions List
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portions of the project outside of the buffered area may continue during this assessment period.

Additionally, the Yuhaaviatam of San Manuel Nation Cultural Resources Department (YSMN) shall be contacted, regarding any pre-contact finds and be provided information after the archaeologist makes his/her initial assessment of the nature of the find, so as to provide Tribal input with regards to significance and treatment.
105. If significant pre-contact cultural resources, as defined by CEQA (as amended, 2015), are discovered and avoidance cannot be ensured, the archaeologist shall develop a Monitoring and Treatment Plan, the drafts of which shall be provided to YSMN for review and comment. The archaeologist shall monitor the remainder of the project and implement the Plan accordingly. 106. If human remains or funerary objects are encountered during any activities associated with the project, work in the immediate vicinity (within a 100-foot buffer of the find) shall cease and the County Coroner shall be contacted pursuant to State Health and Safety Code §7050.5 and that code enforced for the duration of the project.
Inadvertent discoveries of human remains and/or funerary object(s) are subject to California State Health and Safety Code Section 7050.5, and the subsequent disposition of those discoveries shall be decided by the Most Likely Descendant (MLD), as determined by the Native American Heritage Commission (NAHC), should those findings be determined as Native American in origin.
Should human remains and/or cremations be encountered on the surface or during any and all ground-disturbing activities (i.e., clearing, grubbing, tree and bush removal, grading, trenching, fence post placement and removal, construction excavation, excavation for all water supply, electrical, and irrigation lines, and landscaping phases of any kind), work in the immediate vicinity of the discovery shall immediately stop within a 100-foot perimeter of the discovery. The area shall be protected; project personnel/observers will be restricted. The County Coroner is to be contacted within 24 hours of discovery. The County Coroner has 48 hours to make his/her determination pursuant to State and Safety Code §7050.5. and Public Resources Code (PRC) § 5097.98. In the event that the human remains and/or cremations are identified as Native American, the Coroner shall notify the Native American Heritage Commission within 24 hours of determination pursuant to subdivision (c) of HSC §5097.98. The Native American Heritage Commission shall immediately notify the person or persons it believes to be the Most Likely Descendant (MLD). The MLD has 48 hours, upon being granted access to the Project site, to inspect the site of discovery and make his/her recommendation for final treatment and disposition, with appropriate dignity, of the remains and all associated grave goods pursuant to PRC §5097.98. If the Morongo Band of Mission Indians has been named the Most Likely Descendant (MLD), the Tribe may wish to rebury the human remains and/or cremation and sacred Conditions List
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items in their place of discovery with no further disturbance where they will reside in perpetuity. The place(s) of reburial will not be disclosed by any party and is exempt from the California Public Records Act (California Government Code § 6254[r]). Reburial location of human remains and/or cremations will be determined by the Tribe’s Most Likely Descendant (MLD), the landowner, and the City Planning Department.
107. The Yuhaaviatam of San Manuel Nation Cultural Resources Department (YSMN) shall be contacted of any pre-contact and/or historic-era cultural resources discovered during project implementation, and be provided information regarding the nature of the find, so as to provide Tribal input with regards to significance and treatment. Should the find be deemed significant, as defined by CEQA (as amended, 2015), a cultural resources Monitoring and Treatment Plan shall be created by the archaeologist, in coordination with YSMN, and all subsequent finds shall be subject to this Plan. This Plan shall allow for a monitor to be present that represents YSMN for the remainder of the project, should YSMN elect to place a monitor on-site. 108. Any and all archaeological/cultural documents created as a part of the project (isolate records, site records, survey reports, testing reports, etc.) shall be supplied to the applicant and Lead Agency for dissemination to YSMN. The Lead Agency and/or applicant shall, in good faith, consult with YSMN throughout the life of the project.
109. If cultural resources are discovered during project activities, all work in the immediate vicinity of the find (within a 60-foot buffer) shall cease and a qualified archaeologist meeting Secretary of Interior standards retained by the project applicant shall assess the find. Work on the portions of the Projects outside of the buffered area may continue during this assessment period. Should the find be deemed significant, as defined by CEQA (as amended, 2015), the Project applicant shall retain a professional Tribal Monitor procured by the FTBMI to observe all remaining ground- disturbing activities including, but not limited to, clearing, grading, excavating, digging, trenching, plowing, drilling, tunneling, quarrying, leveling, driving posts, auguring, blasting, stripping topsoil or similar activity, and archaeological work.
110. The Lead Agency and/or applicant shall, in good faith, consult with FTBMI on the disposition and treatment of any Tribal Cultural Resource encountered during all ground disturbing activities. 111. Prior to the issuance of grading permits, the applicant shall enter into a Tribal Monitoring Services Agreement with the Morongo Band of Mission Indians (MBMI) for the Project. The Tribal Monitor shall be on-site during all ground-disturbing activities (including, but not limited to, clearing, grubbing, tree and bush removal, grading, trenching, fence post placement and removal, construction excavation, excavation for all utility and irrigation lines, and landscaping phases of any kind). The Tribal Monitor shall have the authority to temporarily divert, redirect, or halt the ground-disturbing activities to allow identification, evaluation, and potential recovery of cultural resources.
112. Prior to any ground-disturbing activities (including, but not limited to, clearing, grubbing, tree and bush removal, grading, trenching, fence post replacement and removal, construction excavation, Conditions List
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excavation for all utility and irrigation lines, and landscaping phases of any kind), and prior to the issuance of grading permits, the Applicant shall retain a Qualified Archaeologist who meets the U.S. Secretary of the Interior Standards (SOI). The Archaeologist shall be present during all ground-disturbing activities to identify any known or suspected archaeological and/or cultural resources. The Archaeologist will conduct a Cultural Resource Sensitivity Training, in conjunction with the Tribe[s] Tribal Historic Preservation Officer (THPO), and/or designated Tribal Representative. The training session will focus on the archaeological and tribal cultural resources that may be encountered during ground-disturbing activities as well as the procedures to be followed in such an event.
113. Prior to any ground-disturbing activities the project Archaeologist shall develop a Cultural Resource Management Plan (CRMP) and/or Archaeological Monitoring and Treatment Plan (AMTP) to address the details, timing, and responsibilities of all archaeological and cultural resource activities that occur on the project site. This Plan shall be written in consultation with the consulting Tribe[s] and shall include the following: approved Mitigation Measures/Conditions of Approval, contact information for all pertinent parties, parties’ responsibilities, procedures for each mitigation measure or condition of approval, and an overview of the project schedule. 114. The retained Qualified archeologist and Consulting Tribe[s] representative shall attend the pre- grade meeting with the grading contractors to explain and coordinate the requirements of the monitoring plan.
115. During all ground-disturbing activities the Qualified Archaeologist and the Tribal Monitor shall be on-site full-time. The frequency of inspections shall depend on the rate of excavation, the materials excavated, and any discoveries of Tribal Cultural Resources as defined in California Public Resources Code Section 21074. Archaeological and Tribal Monitoring will be discontinued when the depth of grading and the soil conditions no longer retain the potential to contain cultural deposits. The Qualified Archaeologist, in consultation with the Tribal Monitor, shall be responsible for determining the duration and frequency of monitoring. 116. In the event that previously unidentified cultural resources are unearthed during construction, the Qualified Archaeologist and the Tribal Monitor shall have the authority to temporarily divert and/or temporarily halt ground-disturbance operations in the area of discovery to allow for the evaluation of potentially significant cultural resources. Isolates and clearly non-significant deposits shall be minimally documented in the field and collected so the monitored grading can proceed.

If a potentially significant cultural resource(s) is discovered, work shall stop within a 60-foot perimeter of the discovery and an Environmentally Sensitive Area (ESA) physical demarcation/barrier constructed. All work shall be diverted away from the vicinity of the find, so that the find can be evaluated by the Qualified Archaeologist and Tribal Monitor[s]. The Archaeologist shall notify the Lead Agency and consulting Tribe[s] of said discovery. The Qualified Archaeologist, in consultation with the Lead Agency, the consulting Tribe[s], and the Tribal Monitor, shall determine the significance of the discovered resource. A recommendation for the Conditions List
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treatment and disposition of the Tribal Cultural Resource shall be made by the Qualified Archaeologist in consultation with the Tribe[s] and the Tribal Monitor[s] and be submitted to the Lead Agency for review and approval. Below are the possible treatments and dispositions of significant cultural resources in order of CEQA preference:
Full avoidance
If avoidance is not feasible, preservation in place.
If preservation in place is not feasible, all items shall be reburied in an area away from any future impacts and reside in a permanent conservation easement or deed restriction.
If all other options are proven to be infeasible, data recovery through excavation and then curation in a curation facility that meets the Federal Curation Standards (CFR 79.1) 117. The final report(s) created as a part of the project (AMTP, isolate records, site records, survey reports, testing reports, etc.) shall be submitted to the Lead Agency and Consulting Tribes(s) for review and comment. After approval of all parties, the final reports are to be submitted to the appropriate Information Center and the Consulting Tribe(s). 118. The applicant shall submit the required Construction Excavation Fee to the Antelope Valley Air Quality Management District (AVAQMD) prior to the issuance of any grading and/or construction permits. This includes compliance with all prerequisites outlined in District Rule 403, Fugitive Dust, including submission and approval of a Dust Control Plan, installation of signage and the completion of a successful onsite compliance inspection by an AVAQMD field inspector. Proof of compliance shall be submitted to the City.
119. Prior to the submittal of any grading and/or building permits, the applicant shall have a construction and operational noise study prepared which identifies the existing/future noise and any necessary design features to ensure that noise levels adjacent to residences do not exceed 65 dBA during construction or operation. Specifically, the noise study shall:
Short and long-term noise readings at the adjacent residential uses and on the project site.
Identification of location and material or any necessary noise barriers to be utilized during construction.
Any design features to be incorporated into the hotel and apartment buildings to ensure operations of these facilities do not exceed the noise standards established by the general plan.
A vibration noise analysis which identifies appropriate mitigation/management strategies to prevent impacts to neighboring residential properties and damage of structures based on the construction type and any subterranean parking.

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This information shall be contained within a stand alone document and all recommendations and measures identified in the report shall be followed. Additionally, the measures shall be indicated on all construction and grading plans.
120. Construction operations shall not occur between 8 p.m. and 7 a.m. on weekdays or Saturday or at any time on Sunday. The hours of any construction-related activities shall be restricted to the periods and days permitted by local ordinance.
121. The on-site construction supervisor shall have the responsibility and authority to receive and resolve complaints. A clear appeal process to the owner shall be established prior to construction commencement that will allow for resolution of noise problems that cannot be immediately solved by the site supervisor.
122. Electrically powered equipment shall be used instead of pneumatic or internal combustion power equipment, where feasible.
123. Material stockpiles and mobile equipment staging, parking and maintenance areas shall be located as far away as practicable from noise sensitive receptors. 124. The use of noise producing signals, including horns, whistles, alarms, and bells shall be for safety warning purposes only.
125. No project-related public address or music system shall be audible at any adjacent receptor. 126. All noise producing construction equipment and vehicles using internal combustion engines shall be equipped with mufflers, air-inlet silencers where appropriate, and other shrouds, shields, or other noise-reducing features in good operating condition that meets or exceeds original factory specifications. Mobile or fixed “package” equipment (e.g., arc-welders, air compressors, etc.) shall be equipped with shrouds and noise controls features that are readily available for the type of equipment.
127. In accordance with the City of Lancaster’s Vehicle Miles Traveled Impact Fee Mitigation Program, the applicant shall pay a total of $27,855 to reduce VMT impacts prior to issuance of any construction related permits.

ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

LANCASTER, CALIFORNIA, AMENDING THE CITY ZONING
PLAN FOR 10 GROSS ACRES OF LAND LOCATED AT THE
SOUTHEAST CORNER OF AVENUE L AND 15 TH STREET
WEST (ASSESSOR PARCEL NUMBERS: 3109-026-032, 3109-
026-040, 3109-026-042, 3109-026-044) FROM RR-2.5 (RURAL RESIDENTIAL, MINIMUM LOT SIZE 2.5 ACRES) TO MIXED
USE – COMMERCIAL (MU-C) KNOWN AS ZONE CHANGE
NO. 21-001
WHEREAS, pursuant to Section 17.24.060 of the Lancaster Municipal Code, an application (“Zone Change No. 21-001”) has been filed by Julian Torkan on behalf of Westlanc Partners, LLC (“Applicant”) to change the zoning designation on 10 acres of land located at the southeast corner of Avenue L and 15th Street West (Assessor Parcel Numbers 3109-026-032, 3109- 026-040, 3109-026-042, 3109-026-044) (hereinafter “Subject Property”) from RR-2.5 (Rural Residential, minimum lot size 2.5 acres) to MU-C (Mixed Use - Commercial); and WHEREAS, a notice of intention to consider a zone change for the Subject Property was given, as required by Section 17.24.110 of the Lancaster Municipal Code (“LMC”) and Sections 65854 and 65905 of the Government Code; and
WHEREAS, on April 21, 2025, the City of Lancaster’s Planning Commission held a public hearing on Zone Change No. 21-001, notice of which was published and provided as required by law, and adopted Resolution No. 25-04 (the “Planning Commission Recommendation”) recommending to the City of Lancaster City Council (“City Council”) approval of Zone Change No. 21-001; and
WHEREAS, staff has performed the necessary investigations, prepared a written report, and recommended that the zone change request be approved; and WHEREAS, the City Council desires to approve the Applicant’s request as set forth herein.

THE CITY COUNCIL OF THE CITY OF LANCASTER, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. The foregoing Recitals are true, correct and a substantive part of this Ordinance.

Section 2. The City Council hereby makes the following findings for Zone Change No. 21-001 in accordance with Section 17.24.120 of the LMC:
a. That modified conditions warrant a revision in the zoning plan as it pertains to the area or district under consideration; and Ordinance No.

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b. That a need for the proposed zone classification exists within such area or district; and
c. That the particular property under consideration is a proper location for said zone classification within such area or district; and d. That placement of the proposed zone at such location will be in the interest of public health, safety and general welfare and in conformity with good zoning practice
Section 3. City Council hereby approves Zone Change No. 21-001 to reclassify the zoning for the subject property from RR-2.5 to MU-C.

Section 4. Any ordinance previously adopted by the City Council shall be and hereby is repealed if and to the extent inconsistent with this Ordinance; provided, however, that each such ordinance shall otherwise remain in full force and effect.

Section 5. 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 6. 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.

Ordinance No.

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I, Andrea Alexander, 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 ____________, ______, and placed upon its second reading and adoption at a regular meeting of the City Council on the _______ day of __________, ______, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST: APPROVED:
__________________________________________________________ ANDREA ALEXANDER R. REX PARRIS
City Clerk Mayor
City of Lancaster City of Lancaster
STATE OF CALIFORNIA }
COUNTY OF LOS ANGELES }ss
CITY OF LANCASTER }

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. , 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)
___________________________________
AGENDA ITEM: 3.

DATE: 04/21/25

STAFF REPORT
GENERAL PLAN AMENDMENT NO. 21-001
ZONE CHANGE NO. 21-001
TENTATIVE TRACT MAP NO. 24-001 (84317)
CONDITIONAL USE PERMIT NO. 21-001
DATE:April 21, 2025
TO:Lancaster Planning Commission
FROM:Jocelyn Swain, Senior Planner
Community Development Department
APPLICANT:Westlanc Partners, LLC/ Julian Torkan
LOCATION:±10 gross acres at the southeast corner of Avenue L and 15 th Street West (Assessor Parcel Numbers [APNs] 3109-026-032, -040, -042, -044).

REQUEST:General Plan Amendment to change the general plan designation from NU (Non-Urban) to MU (Mixed Use), a Zone Change from RR-2.5 (Rural Residential, minimum lot size 2.5 acres) to MU-C (Mixed Use-Commercial), a Tentative Tract Map to subdivide the subject property into six lots, and a Conditional Use Permit to allow for the construction and operation/occupancy of a mixed use development consisting of 181 multi- family residential units, a 235 room hotel, 12,800 square feet of retail/restaurant space, and 3,800 square foot clubhouse RECOMMENDATION:Adopt Resolution No. 25-04 recommending approval to the City Council for General Plan Amendment (GPA) No. 21-001 to change the general plan designation to MU and Zone Change (ZC) No. 21-001 to change the zoning to MU-C; approving Tentative Tract Map (TTM) No. 24-001 (84317) subdividing the subject property into six lots, approving Conditional Use Permit (CUP) No. 21-001 for the construction and operation/occupancy of a mixed use development consisting of 181 multi-family residential units, a 235 room hotel, 12,800 square feet of retail/restaurant space, and a 3,800 square foot clubhouse located on approximately 10 gross acres at the southeast corner of Avenue L and 15 th Street West (APNs: 3109-026-032, - 040, -042, -044), adopting the Initial Study/Mitigated Negative Declaration (SCH# 2024080570), approving the Mitigation Monitoring and Reporting

PC Staff Report
GPA 21-001/ZC 21-001
TTM 24-001 (84317)/CUP 21-001
April 21, 2025

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Program and authorizing staff to execute and file the Notice of Determination. Approval of the tentative tract map and conditional use permit will not become effective until approval of the General Plan Amendment and Zone Change.
______________________________________________________________________________

BACKGROUND
A Planning Commission hearing for the project was noticed for October 21, 2024. In order to allow for public outreach by the applicant, the hearing was continued to a date uncertain.

GENERAL INFORMATION
Table 1 summarizes the general information concerning this project.

Table 1: General Information

ITEM DESCRIPTION
APNS 3109-026-032, 3109-026-040, 3109-026-042, 3109-026-044 LOCATION ±10 gross acres at the southeast corner of Avenue L and 15 th Street West
ZONING AND LAND USE The subject property is zoned RR-2.5 (rural residential, minimum lot size 2.5 acres) and is currently vacant.

SURROUNDING LAND USES

AND ZONING
North: Vacant; Office Professional (OP)
South: Single family residences, RR-2.5
East: Caltrans right-of-way/freeway, two single family residences (east of freeway); Commercial (C)/Commercial Planned
Development (CPD)
West: Vacant; RR-2.5
CURRENT DEVELOPMENT The project site is currently vacant.

ENVIRONMENTAL REVIEW
An initial study/mitigated negative declaration (SCH #2024080570) was prepared for the project and circulated for a 30-day public review period in accordance with the California Environmental Quality Act (CEQA). The public review period started on August 14, 2024 and was scheduled to end on September 13, 2024. A one week extension was granted for the comment period to September 20, 2024. A revised initial study/mitigated negative declaration was prepared for the project and circulated for a 30-day public review period ending on April 18, 2025.

PC Staff Report
GPA 21-001/ZC 21-001
TTM 24-001 (84317)/CUP 21-001
April 21, 2025

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Effective January 1, 1991, applicants whose projects have the potential to result in the loss of fish, wildlife or habitat through urbanization and/or land use conversion are required to pay filing fees as set forth under Section 711.4 of the Fish and Game Code.

Pursuant to Section 21089(b) of the Public Resources Code, the approval of a project is not valid, and no development right is vested, until such fees are paid.

PROJECT DESCRIPTION:

Conditional Use Permit
The Project is a mixed use development consisting of a total of 181 multi-family residential units in two buildings, a 235-room hotel, a 3,800 square foot club house with pool, and 3 retail/restaurant pads totaling 12,800 square feet. A water feature/fountain would be located in the central portion of the development with small bench areas for seating. No alcohol sales are currently proposed by the hotel and/or retail/restaurant pads. Future alcohol sales on the site would be subject to additional reviews.

Details regarding each of the individual components are provided below.

Landscaping would be provided around the perimeter of the project site, in the surface parking areas, around the buildings on site. A total of 71,776 square feet of landscaping or 16% would be provided. This landscaping would provide an additional buffer between the nearby residential and the project site and between the project site and the roadways/freeway adjacent to the development. Open space areas would also be provided throughout the site including the three pool areas, outdoor patios associated with the multi-family residential buildings, restaurants, and club house along with seating areas scattered throughout the site, particularly near the central water feature. A total of 38,662 square feet of open space is provided through these amenities.

A total of 799 parking spaces, inclusive of ADA and EV parking spaces, would be provided. These spaces would be located central portion of the development and screened from public review by the hotel and multi-family residential buildings. The remainder of the parking spaces, specifically for residents and hotel visitors, would be located in subterranean parking garages below the buildings. Access to the project site would be from two driveways located on 15 th Street West, one in the middle of the site and one on the southern boundary. The driveway on the southern boundary lines up with the driveway for the development on the west side of 15 th Street West. This driveway would run along the south property boundary, on the south side of the hotel and would ultimately end in a turn-around point which can accommodate any hotel delivery trucks and fire trucks. Both driveways would allow for full turning movements. A block wall and landscaping would be located along the southern boundary.

Multi-Family Residential Buildings
The Project would contain two multi-family residential buildings located along 15 th Street West. The development would contain 90 and 91 multi-family residential units in each building and these units are proposed to be market rate. The units would range in size from studios to two-bedrooms. All units would have a private balcony or patio area. The breakdown of unit sizes is as follows: 24 two-bedroom, 98 one- bedroom, and 59 studios would be provided between the buildings. A total of 330 parking spaces of the PC Staff Report
GPA 21-001/ZC 21-001
TTM 24-001 (84317)/CUP 21-001
April 21, 2025

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799 spaces on site would be dedicated to the residential uses. 269 of these spaces would be located on the ground floor or subterranean levels of the residential buildings. This accounts for 2 parking spaces for each two bedroom unit, 1.5 parking spaces for each studio/one bedroom unit and 46 guest parking spaces.

Both of the multi-family residential buildings would be four-stories in height or 58’ 8”. The Lancaster Municipal Code (LMC) allows multi-family residential buildings in the mixed-use zones to be up to four stories in height; however, multi-family residential buildings located along major arterials, such as Avenue L, to be up to five stories. These two buildings fall within the height requirements of the LMC. A large outdoor, open space patio area, with a private pool area, would be provided along the eastern entrance of each building. Landscaping and sidewalks would be provided around the perimeter of each building.

Pedestrian entrances into the buildings would be located on the north, west, and south elevations. The entrance to each building’s subterranean parking garage is provided on the eastern side underneath the pool area. Internal staircases and elevators provide access from the parking area to the residential floors.

The architecture of the multi-family buildings consists of a combination of primarily light grey and secondarily dark grey concrete planes that alternate in height creating visual interest at the roofline. This effect breaks the overall massing of the buildings in order to prevent a “boxy” building shape. The buildings also feature dark brown accents that frame sections of the façade along the upper floors. Grey slate stone would form the base of the building and pool deck area. The buildings would be off-set both vertically and horizontally to provide visual interest. Large windows would be located along the eastern and western expanses of the buildings
Hotel and Clubhouse
The 235-room hotel would be located along the southern boundary of the project site with the main entrance located on the northern elevation. The hotel would be five stories with a maximum height of 58’ 8”, the same height as the multi-family residential buildings. The building height would vary from a low point of 52’ 9” to the maximum to provide vertical articulation. The mixed-use zone limits commercial buildings to a maximum height of 50’; however, the LMC allows buildings to be higher with the approval of a CUP. The hotel would be setback 42 feet from the property line. A 6-foot block wall would be located on the property line, followed by a landscape buffer, drive aisle, additional building landscaping, and building. While single family residences are located on the properties to the south, the closest residential structure is approximately 300 feet from the property line providing additional separation.

An outdoor pool/seating area would be located at the northeast corner of the hotel just north of the turn- around area and provide a recreational amenity to hotel guest. Additionally, a 3,800 square foot clubhouse would be associated with the hotel. The clubhouse would provide both indoor and outdoor areas and would be located north of the hotel along the eastern boundary of the site.

Access to the underground parking for the hotel would be provided from the drive aisle on the southern end of the property with the ramps located at the western and eastern ends of the hotel. A turn around area would be located at the eastern end of the hotel providing an area for delivery trucks and fire trucks.

Required parking for commercial uses defaults to the standards of the commercial zone which does not have minimum parking standards. The project would provide a total of 255 parking spaces for the hotel and 19 spaces for the clubhouse. The hotel parking was calculated as one space for every room plus 20 PC Staff Report
GPA 21-001/ZC 21-001
TTM 24-001 (84317)/CUP 21-001
April 21, 2025

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spaces for employees. These spaces would be located in both the underground parking area and surface parking lot.

The architecture of the hotel building is designed to complement the architecture of the multi-family buildings and overall commercial center. The hotel is designed in sections with alternating colors and textures, similar to the overall commercial center. Some sections would be a medium grey-brown color (Pearl 86) with a limestone texture finish, while the alternating sections would be a dark cream color (Beaver Blend) with a brick type finish. The base of the building would alternate between the Pearl color and a grey-brown cast stone. Aluminum sun shades in a dark grey would be placed above the base level.

The clubhouse is located on the eastern portion of the commercial center and designed with a mix of light and dark grey with dark grey slate stone. The entrance to the building would have bronze metal accents and a covered patio with the same materials would be located on the east side of the building.

Restaurant/Retail Buildings
Three restaurant/retail pads, for a total of 12,800 square feet, would be located along the northern/north- eastern property line adjacent to Avenue L and the Antelope Valley Freeway. Two of pads would be for quick-serve restaurants with drive-thru lanes. The restaurant buildings on these pads would each be approximately 2,650 square feet. In between these two pads would be a retail/restaurant pad which would allow for the development of an approximately 7,500 square foot building. This building could be utilized for one or more retail uses, sit-down restaurant or mix of the two. No drive-thru would be permitted at this location. All three of the buildings would be a maximum height of 23 feet which is well below the maximum height of 50 feet for commercial buildings in MU-C zone.

The restaurant buildings with the drive-thrus would be predominantly cream colored with grey slate/stone along the foundation and entry ways to the buildings with bronze metal trim along the roof line and south/west edges of the buildings. Large windows would be placed along the south, north and east elevations with bronze metal awnings. Vertical articulation is provided along the roofline with grey slate/stone tower elements. The larger retail/restaurant building would be a dark grey brown with lighter grey bands. Bronze metal accents would be provided along the north elevation along the roofline and on the west elevation as an accent strip in the middle of the building.

Tentative Tract Map
The applicant is proposing to subdivide the subject property into six individual lots. Each use on the site would occupy its own parcel with the hotel and clubhouse sharing the same parcel. The parcels would range in size from 25,962 square feet (.60 acres) to 197,207 square feet (4.5 acres) and would meet the minimum width and depths for the zone. While the tentative tract map would create individual lots for the uses, the parking, access, drive aisles, landscaping, drainage improvements, etc., would be shared and subject to CC&Rs, POA/HOA and reciprocal access/shared parking agreements.

General Plan Amendment
In order to facilitate the development of the project, the applicant is requesting a general plan amendment. The current general plan designation for the subject property is Non-Urban (NU). The proposed project includes a general plan amendment (GPA No. 21-001) to change the designation of the PC Staff Report
GPA 21-001/ZC 21-001
TTM 24-001 (84317)/CUP 21-001
April 21, 2025

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subject property to Mixed Use (MU). This designation is required in order to allow for the development of the site with a mix of residential, hotel, and commercial uses. The current designation of NU would only allow for the development of the site with low density residential and would not allow for the mix of uses proposed.

Zone Change
The applicant is also requesting a zone change for the proposed development. The current zoning for the subject property is RR-2.5 (Rural Residential, minimum lot size 2.5 acres). The proposed project includes a zone change request (ZC No. 21-001) to change the zoning of the subject property to MU-C (Mixed Use - Commercial) which is consistent with the requested general plan designation. The purpose of the MU-C zone is to provide “a more fully integrated residential and commercial mixed use development characterized by designation features and social gathering areas. Mixed use commercial developments are typically located along major arterial streets and are intended to contribute to the local streetscape through vertical elements of multi-storied structures, built closer to the front property line.”

PUBLIC OUTREACH
A variety of public outreach has been conducted to ensure that the community is informed about the proposed project. The public outreach opportunities included the following:
•Agency mailings: a project description and site plans were sent to a variety of agencies and public interest groups to receive their input on the project at the time of project submittal. These included Southern California Edison, SoCal Gas, Verizon, Spectrum, AV Union High School District, Westside Union School District, AV Schools Transportation Agency, White Fence Farms Mutual Water Company, Fire Department, Sanitation District, Sheriff’s Department, LA County Regional Planning and Public Works, Antelope Valley Transit Authority, Antelope Valley Air Quality Management District, City of Palmdale, and the California Department of Fish and Wildlife. •Notice of Availability/Notice of Intent: The Notice of Availability/Notice of Intent of the Initial Study, and revised Initial Study, for the project was sent to all property owners/occupants within 1,500 feet of the project site, local entities (Library, City of Palmdale, County of Los Angeles, AVAQMD, and two law firms), Los Angeles County Clerk, State Clearinghouse (for State Agencies), posted on the City’s website and published in the Antelope Valley Press. The Notice of Availability/Notice of Intent for the revised Initial Study was also sent to Advocates for the Environment and the Law Offices of Jordan R Sisson.
•Meeting with local residents: On August 27, 2024, staff met with two members of the neighboring community to discuss the project, explain the comment/hearing process and answer questions. •A public outreach letter was sent by the applicant to all residents within 1,500 feet of the project site by the applicant on September 28, 2024. The letter introduces the project applicant and describes the Project. The letter also provides the applicant’s contact information for residents to share their concerns regarding the project with the applicant. •Public Outreach meetings: Public outreach meetings were held by the on February 3, 2025 and PC Staff Report
GPA 21-001/ZC 21-001
TTM 24-001 (84317)/CUP 21-001
April 21, 2025

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February 26, 2025 at the Residence Inn from 3 p.m. to 7 p.m. •Public Hearing Notices: The public hearing notice for the October 21, 2024 hearing was mailed to all property owners/occupants within 1,500 feet of the project site, published in the Antelope Valley Press on October 11, 2024, posted on the project site, at the library, and City Hall. The public hearing notice for the April 21, 2025 hearing was mailed on March 27, 2025 to all property owner/occupants within 1,500 feet, published in the Antelope Valley Press on April 1, 2025, posted on the project site, at the library, and City Hall.

CEQA COMPLIANCE
An Initial Study/Mitigated Negative Declaration was prepared for the project based on publicly available information and technical reports authored by consultants. The technical reports included database searches along with field surveys. The Initial Study (SCH #2024080570) was circulated for public review in accordance with the California Environmental Quality Act (CEQA) Guidelines. The Initial Study was posted at the Clearinghouse and on the City’s website. The Notice of Availability/Notice of Intent was published in the Antelope Valley Press on August 14, 2024, posted with the Los Angeles County Clerk, mailed to all property owners/occupants within 1,500 feet of the project site along with other interested organizations (e.g., library and AVAQMD).

The 30-day public review period started on August 14, 2024 and was scheduled to close on September 13, 2024. During this time, a request for a time extension came in for the project from Adams Broadwell. A one-week extension of the public review period was granted for the project and the comment period was extended to September 20, 2024.

During the public review period, comment letters were received from the following entities:
•State Agencies (Caltrans, California Department of Fish and Wildlife) •Local Agencies (Antelope Valley Air Quality Management District) •Law firms: Adams Broadwell representing Coalition for Responsible Equitable Economic Development Los Angeles (CREED LA) and Lozeau Drury representing Supporters Alliance for Environmental Responsibility (SAFER)
•30 comment letters from members of the public
•Petition opposing the project totaling 23 pages
Subsequent to the closing of the public comment period, letters were received from Advocates for the Environment and the Law Offices of Jordan R. Sisson representing UNITE HERE Local 11. All comments received on the Initial Study were reviewed.

A revised Initial Study/Mitigated was prepared for the project to address comments that were raised. The revised document was released for public review on March 19, 2025 and the comment period closed on April 18, 2025.

PC Staff Report
GPA 21-001/ZC 21-001
TTM 24-001 (84317)/CUP 21-001
April 21, 2025

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ANALYSIS:

General Plan Consistency
In order to grant a General Plan Amendment, Section 17.24.140 of the Lancaster Municipal Code states that the Planning Commission must show that such amendment is necessary to implement the General Plan and/or that public convenience, the general welfare, or good zoning practice justifies such action.

The proposed project is consistent with the following policies contained within the City of Lancaster 2030 General Plan:

Policy 3.1.1:Ensure that development does not adversely affect the groundwater supply.

Policy 3.1.3:Encourage the use of recycled tertiary treated wastewater when possible.

Policy 3.2.1:Promote the use of water conservation measures in the landscape plans of new developments.

Policy 3.2.5:Promote the use of water conservation measures in the design of new development.

Policy 3.3.1:Minimize the amount of vehicular miles traveled.

Policy 3.3.2:Facilitate the development and use of public transportation and travel modes such as bicycle riding and walking.

Policy 3.3.3:Minimize air pollutant emissions generated by new and existing development.

Policy 3.3.4:Protect sensitive uses such as homes, schools, and medical facilities, from the impacts of air pollution.

Policy 3.4.4:Ensure that development proposals, including City sponsored projects, are analyzed for short- and long-term impacts to biological resources and that appropriate mitigation measures are implemented.

Policy 3.5.1:Minimize erosion problems resulting from development activities.

Policy 3.6.1:Reduce energy consumption by establishing land use patterns which would decrease automobile travel and increase the use of energy efficient modes of transportation.

Policy 3.6.2:Encourage innovative building, site design, and orientation techniques PC Staff Report
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April 21, 2025

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which minimize energy use.

Policy 3.6.3:Encourage the incorporation of energy conservation measures in existing and new structures.

Policy 3.6.6:Consider and promote the use of alternative energy such as wind energy and solar energy.

Policy 3.8.1:Preserve views of surrounding ridgelines, slope areas and hilltops, as well as other scenic vistas.

Policy 4.3.1:Ensure that noise sensitive land uses and noise generators are located and designed in such a manner that City noise objectives will be achieved.

Policy 4.5.1:Ensure that activities within the City of Lancaster transport, use, store, and dispose of hazardous materials in a responsible manner which protects the public health and safety.

Policy 4.6.2:Ensure that the design of development discourages opportunities for criminal activities to the maximum extent possible.

Policy 4.7.2:Ensure that the design of new development minimizes the potential for fire.

Policy 14.1.1:Design the City’s street system to serve both the existing population and future residents.

Policy 14.1.4:Encourage the design of roads and traffic controls to optimize the safe traffic flow by minimizing turning movements, curb parking, uncontrolled access, and frequent stops.

Policy 14.2.2:Manage the City’s roadway network so that it is aesthetically pleasing through the development and maintenance of streetscapes.

Policy 15.1.2:Cooperate with local water agencies to provide an adequate water supply system to meet the standards for domestic and emergency needs.

Policy 16.3.1Promote development patterns which will minimize the costs of infrastructure development, public facilities development and municipal service cost delivery.

Policy 18.2.2:Encourage appropriate development to locate so that municipal services can be efficiently provided.

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of residential, commercial, park, and medical uses in the immediate vicinity. The mix of uses has been changing over time with more commercial uses being added to the mix in the central portion of the City (i.e., Challenger Way to 40th Street West). The Antelope Valley Freeway is immediately east of the project site.

The proposed amendment would allow for development of the project site in accordance with goals of the City and provide for additional residential and commercial uses along a major roadway in a mixed-use setting. The proposed amendment would not adversely affect the economic health of the City, as the development of the project would not require a major investment to provide access or public infrastructure to the site. Access already exists from Avenue L and 15 th Street West and the developer would be required to install the necessary improvements to ensure that these roadways continue to operate in a smooth and efficient manner. Additionally, public utilities including water, sewer, and electricity exist in the vicinity of the project site and can be extended to provide service.

The proposed development is consistent with the residential and commercial uses in the immediate vicinity. While the subject property is adjacent to existing residential uses and the height of the multi- family residential and hotel uses are taller than many of the structures in the general area (with the exception of the Kaiser Butterfly building), the height falls within the development standards of the MU- C zone. Additionally, development features of the proposed project including block walls on the southern boundary, site landscaping and the placement of the parking either underground or in the center of the project site would minimize impacts on the immediately adjacent neighbors. The site has also been designed in a way to ensure the safety of employees, visitors, and neighboring residents including adequate site lighting and clear visibility throughout the site and into the main entrances of structures.

The placement of parking within the center of the site with the multi-family and hotel buildings along the western and southern boundaries of the site is consistent with the requirements of the zone and will assist in blocking the surrounding residential land uses from activities and noise generated on-site. The property directly north of the project site at the northeast corner of Avenue L and 15 th Street West is zoned OP (Office Professional) which is meant for office and related commercial uses and the property at the northwest of Avenue L and 15 th Street West is zoned HDR (High Density Residential, 15.1-30 units to the acre) and developed with townhomes. As such, the proposed amendment would be compatible with the surrounding land uses and the general plan designations.

No environmental impacts were identified in the initial study that cannot be reduced with the implementation of the identified mitigation measures.

Housing Element Consistency/No Net Loss
The Project supports the goals and objectives of the City of Lancaster’s 2022 Housing Element (revised and certified 2023). Specifically, the Housing Element identifies objectives and policies to provide a variety of housing types and affordability levels to the residents of Lancaster. The Project would provide a total of 181 multi-family residential units in two buildings are described above. This development would support the following policies from the City’s Housing Element and would help the City meet its current Regional Housing Needs Assessment (RHNA) overall numbers of 9,023 housing units. The Project would be consistent with the Housing Element policies listed below and would increase the amount of housing produced over what the site is currently zoned for. As currently zoned, a maximum of 12 housing units could be developed (one single family housing, accessory dwelling unit and junior ADU per parcel). The PC Staff Report
GPA 21-001/ZC 21-001
TTM 24-001 (84317)/CUP 21-001
April 21, 2025

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Project would allow for an increase of 169 units over current zoning.

Policy H-1.1:Provide for adequate sites that will enable the production of 9,023 housing units through October 2029 to meet the demands of present and future residents, including an adequate number and range of new dwelling types affordable to extremely low-, very low-, low-, moderate-, and above moderate-income households.

Policy H-1.2:Encourage a mix of housing types are provided, including single- and multi-family housing within a variety of price ranges to provide a range of housing options for Lancaster residents.

Policy H-3.7:Encourage energy conservation and sustainable living building measures in new and existing homes and the addition of energy conservation devices/practices in existing developments.

Compliance with the Lancaster Municipal Code (LMC)
The proposed project complies with the development standards for residential and commercial uses in the MU-C zone as identified in Sections 17.10.060 and 17.10.070 of the LMC.

Compliance with the City of Lancaster Design Guidelines The proposed project complies with the intent of the Design Guidelines with respect to site design and layout for mixed use, residential, and commercial developments. Pedestrian connectivity is provided throughout the project site and along the project frontage through the installation of meandering sidewalks and walkways. The elevations and floor plans for the proposed development have been reviewed and are in compliance with the Design Guidelines. Outdoor patios, pool areas and private balconies are provided for the residential uses as well as dining patios, sitting areas, and recreational amenities for the hotel and commercial uses.

ZONE CHANGE FINDINGS
In order to grant a Zone Change (ZC), Section 17.24.120 of the Lancaster Municipal Code states that the Planning Commission must make all of the following findings:
a. That modified conditions warrant a revision in the zoning plan as it pertains to the area or district under consideration.

Modified conditions warrant a revision in the zoning plan in order to allow for the permitting of the project. The subject site is located at the southeast corner of Avenue L and 15 th Street West along a major arterial in the central portion of the city. The uses along this arterial have been changing from a mix of residential and commercial uses to include more commercial uses and higher density, particularly close to the freeway. Rezoning of the project site would continue the commercial zoning east of the freeway and further connect it with the commercial zoning to the west of the project site (20th Street West and Ave L). It would also provide a higher density mixed PC Staff Report
GPA 21-001/ZC 21-001
TTM 24-001 (84317)/CUP 21-001
April 21, 2025

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-use buffer between the existing residential uses and Avenue L and additional commercial uses.

Therefore, the zoning would be compatible with the surrounding zoning designations and land uses.
b. That a need for the proposed zone classification exists within such area or district.

The MU-C zoning would allow for the type of development proposed and would be compatible with the surrounding uses and zoning.
c. That the particular property under consideration is a proper location for said zone classification within such area or district.

The particular property under consideration is a suitable location for the MU-C zone as several properties in the immediate vicinity are also zoned for commercial and higher density residential uses. These locations include the northeast corner of Avenue L and 15 th Street West (zoned OP), the properties on the north and south side of Avenue L east of the freeway, and the northeast and southeast corners of Avenue L and 20 th Street West. The northwest corner of Avenue L and 15th Street West is zoned HDR as well as the southwest and southeast corner of Avenue K-8 and 15th Street West. While there is a rural residential community located on the south side of Avenue L, development features of the project would provide buffers between the subject property and the surrounding uses such as a block wall along the southern boundary, perimeter and site landscaping and the height of the buildings would block noise generate by site activities and Avenue L. Additionally, access to the project site would be available 15 th Street West via two driveways and 15 th Street West would be improved along the site frontage to handle all traffic.

The construction of additional roadways would not be required. d. That placement of the proposed zone at such location will be in the interest of public health, safety, and general welfare and in conformity with good zoning practice.

Placement of the zone at this location will be in the interest of public health, safety, and general welfare and is in conformity with good zoning practice. The zone change would provide another location for higher density residential and commercial uses along a rapidly changing, major arterial in the central portion of the city. The zoning would be consistent with the commercial and residential zoning of various properties along Avenue L in the vicinity of the project site including the northeast corner of Avenue L and 15 th Street West, properties on the north and south sides of Avenue L just east of the freeway, and the commercial properties at the northeast and southeast corners of Avenue L and 20 th Street West as well as the residential properties at the northwest corner of Avenue L and 15 th Street West and the southeast and southwest corners of Avenue K-8 and 15 th Street West. The development would also be compatible with the PC Staff Report
GPA 21-001/ZC 21-001
TTM 24-001 (84317)/CUP 21-001
April 21, 2025

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neighboring residential uses and RR-2.5 zoning with the incorporation of the design features proposed as part of the project.

TENTATIVE TRACT MAP FINDINGS
In order to grant a tentative tract map, Section 16.08.110 of the Lancaster Municipal Code states that the Planning Commission must make all of the following findings:
a. The proposed subdivision is consistent with the general plan, any applicable specific plan, and is compatible with the general plan land uses, goals, objectives, policies, and specific actions specified in such plan.

The project is a mixed-use development with a subdivision to create individual lots for each of the uses. The subdivision is consistent with the general plan land use designation of Mixed Use (MU) and with the policies, goals, objectives, and specific actions of the General Plan. The project is not located within the boundaries of a specific plan.
b. The design and improvement of the proposed subdivision is consistent with the general plan, any applicable specific plan, Title 17, and this title.

The design and improvements of the subdivision are consistent with the General Plan land use designation of MU and the development standards identified in Sections 17.10.060 and 17.10.070 of the LMC. The project site is not located within the boundaries of a specific plan. c. The site is physically suitable for the type and density of the development proposed.

PC Staff Report
GPA 21-001/ZC 21-001
TTM 24-001 (84317)/CUP 21-001
April 21, 2025

Page 14 of 17 ends

e. The design of the subdivision or the type of improvements will not cause serious public health problems.

The design of the subdivision and the associated improvements are not likely to cause serious public health problems as adequate sewer and water systems will be provided to the development. Additionally, all residences and businesses within the subdivision/project are required to have trash collection services in accordance with the City of Lancaster’s Waste Management franchise agreement.
f. The design or the types of improvements of the subdivision will not conflict with easements acquired by the public at large, for access through, or use of, property within the subdivision.

The city may approve the map if alternate easements will be provided in accordance with Section 66474(g) of the Subdivision Map Act.

CONDITIONAL USE PERMIT FINDINGS
In order to grant a conditional use permit, Section 17.32.090 of the Lancaster Municipal Code states that the Planning Commission must make all of the following findings:
a. That the proposed use will not be in substantial conflict with the adopted general plan for the area.

The project would be in conformance with the General Plan Land Use Designation of MU (Mixed PC Staff Report
GPA 21-001/ZC 21-001
TTM 24-001 (84317)/CUP 21-001
April 21, 2025

Page 15 of 17 ends

Use) with approval of the general plan amendment for the subject site. This general plan land use designation allows for a variety of commercial/ retail establishment and residential uses including apartment buildings, restaurants and hotels. In addition, the proposed development would be consistent with the goals, objectives, policies, and specific actions identified in the General Plan.

The conditional use permit would not become effective until the general plan amendment and zone change is approved by the City Council.
b. That the requested use at the location proposed will not:

1. Adversely affect the health, peace, comfort or welfare of persons residing or working in the surrounding area.

Development features associated with the project including a block wall on the southern boundary, site landscaping, shielding of exterior/site lighting, the height of the hotel/multi-family residential buildings blocking site activities from the surrounding uses and conditions of approval would ensure that any potential impacts to the health, peace, comfort or welfare of persons residing in the surrounding area would be minimal.

2. Be materially detrimental to the use, enjoyment, or valuation of property of other persons located in the vicinity of the site.

The development would not be materially detrimental to the use, enjoyment, or valuation of property of other persons located in the vicinity. The subject site is located along a major arterial and adjacent to the Antelope Valley Freeway. The mixed-use development is compatible with other uses in the area and the conditions of approval would ensure that Project would not detrimentally impact neighboring properties.

3. Jeopardize, endanger or otherwise constitute a menace to the public health, safety or general welfare.

Page 16 of 17 ends

area.

1. By highways or streets of sufficient width and improved as necessary to carry the kind and quantity of traffic such use would generate.

The project site would be served by both Avenue L and 15 th Street West. Avenue L is a major arterial which is currently improved to handle the existing traffic in the area. The project would be required to make any necessary improvements to ensure the safe and efficient operation of the roadway once the Project has been constructed. 15 th Street West is currently a private, dirt road. The road would be dedicated and become public along the frontage of the property. This roadway would also be fully improved for the length of the project site. This includes curb, gutter, meandering sidewalk, travels and painted median. With these improvements, the adjacent roadways would be of sufficient width and improved as necessary to carry the traffic generated by the project.

2. By other public or private service facilities as are required.

The project site is located within the service area of the Los Angeles County Fire, Los Angeles County Sheriff’s Department and the City of Lancaster Police Department and adequate fire and police services exist to serve the project. Water for the development is anticipated to be provided by the White Fence Farms Mutual Water Company as the site is located within Company’s boundaries. The project would be required to comply with all of the Mutual Water Company’s requirements. However, there is also a possibility that the applicant will choose to annex the property into the Los Angeles County Waterworks District No. 14 and obtain the necessary water through that entity. Electrical and gas lines are also available in the vicinity of project site and can be extended to serve the development. As such all necessary services are available for the project site.

LEGAL NOTICE
A notice of Public Hearing was mailed to all property owners within a 1,500-foot radius of the project, posted in three places, posted on the subject property, and noticed in Antelope Valley Press on April 1, 2025.

RECOMMENDATION
Adopt Resolution No. 25-004 recommending approval to the City Council for General Plan Amendment (GPA) No. 21-001 to change the general plan designation to MU and Zone Change (ZC) No. 21-001 to change the zoning to MU-C; approving Tentative Tract Map (TTM) No. 24-001 (84317) subdividing the subject property into six lots, approving Conditional Use Permit (CUP) No. 21-001 for construction and PC Staff Report
GPA 21-001/ZC 21-001
TTM 24-001 (84317)/CUP 21-001
April 21, 2025

Page 17 of 17 ends

operation/occupancy of a mixed use development consisting of 181 multi-family residential units, a 235 room hotel, 12,800 square feet of retail/restaurant space, and 3,800 square foot clubhouse located on approximately 10 gross acres at the southeast corner of Avenue L and 15th Street West (APNs: 3109-026- 032, -040, -042, -044), adopting the Initial Study/Mitigated Negative Declaration (SCH# 2024080570), approving the Mitigation Monitoring and Reporting Program and authorizing staff to execute and file the Notice of Determination.

Attachments:

A. Resolution No. 25-04
B. Draft Ordinance
C. Tentative Tract Map No. 24-001 (84317) Plans
D. Conditional Use Permit No. 21-001 Site Plans
E. Revised Initial Study

STAFF REPORT
City of Lancaster
NB 1
7/8/2025
TN
Date: July 8, 2025
To: Mayor Parris and City Council Members
From: Rodrick Armalin, Chief of Police - Lancaster Police Department Subject: School Law Enforcement Services Agreement for School Resource Officer Program – City of Lancaster and Westside Union School District Recommendations:

1. Approve School Law Enforcement Services Agreement for School Resource Officer Program By and Between City of Lancaster and Westside Union School District.

2. Authorize the City Manager, or his designee, to sign all documents related to the agreement and all amendments, including amendments to extend the term, and add additional services as desired, subject to City Attorney approval.

G.C. Section 84308: No
Fiscal Impact:

Estimated revenue amount of $467,369.60 to general fund account 10131000.4306 to offset Officer and Patrol Vehicle costs. No impact to expenditure budget. Staff will utilize two currently budgeted FTE’s to fulfill contract.

Background:

In 2023 the City Council created the City of Lancaster Police Department as a community led policing agency to address quality-of-life issues related to public safety. Since that time, there have been expressed needs from school districts for a School Resource Officer Program. The Westside Union School District desires to contract with the City of Lancaster Police Department for these services.

School Resource Officers (SROs) work in partnership with schools and community-based organizations to maintain a positive and visible law enforcement presence on school campuses.

Their role is not only to ensure safety but also to build meaningful relationships with teachers, 2 1
0 8
administrators, students, and families. SROs should strive to be approachable and responsive, making every effort to be available when their assistance is needed.

Primary Responsibilities:
Law Enforcement: Enforce laws and investigate crimes occurring on or around school campuses. SROs are responsible for addressing any disorderly conduct and ensuring a safe learning environment. SROs should consider all available options prior to using citation and/or arrest of students. School administrators shall be notified when a student is detained or arrested on school grounds.
Relationship Building: Foster strong, trust-based relationships with students, staff, and parents to create a supportive and trusting school climate. Serve as informal life counselors and mentors to students. SROs also act as liaisons to community services, working with school administrators and staff in providing support and resources to youth and families. Education and Outreach: Deliver classroom presentations and serve as guest speakers to enhance students’ understanding of law enforcement and public safety. Play a key role in educating the school community on topics such as drug awareness, conflict resolution, and other relevant public safety concerns.
Emergency Preparedness: Develop and implement emergency response protocols and comprehensive School Safety Plans. SROs coordinate closely with other first responders and are essential members of the school’s threat assessment team.

CM:rc
Attachment:

School Law Enforcement Services Agreement for School Resource Officer Program By and Between City of Lancaster and Westside Union School District

SCHOOL LAW ENFORCEMENT SERVICES AGREEMENT

FOR SCHOOL RESOURCE OFFICER PROGRAM

BY AND BETWEEN

CITY OF LANCASTER POLICE DEPARTMENT AND

WESTSIDE UNION SCHOOL DISTRICT

TABLE OF CONTENTS

1.0 SCOPE OF SERVICES

2.0 ADMINISTRATION OF PERSONNEL

3.0 DEPLOYMENT OF PERSONNEL

4.0 PERFORMANCE OF AGREEMENT

5.0 INDEMNIFICATION

6.0 INSURANCE

7.0 TERM OF AGREEMENT

8.0 RIGHT OF TERMINATION

9.0 BILLING RATES

10.0 PAYMNET PROCEDURES

11.0 AMENDMENTS

12.0 ASSIGNMENT, DELEGATION, AND SUBCONTRACTING

13.0 AUTHORIZATION WARRANTY

14.0 GOVERNING LAW, JURISDICTION, AND VENUE

15.0 NOTICES

16.0 VALIDITY

17.0 WAIVER

18.0 ENTIRE AGREEMENT

SIGNATURES
EXHIBIT A – SCOPE OF WORK
EXHIBIT B – RATE SCHEDULE

SCHOOL LAW ENFORCEMENT SERVICES AGREEMENT

FOR SCHOOL RESOURCE OFFICER PROGRAM

BY AND BETWEEN

CITY OF LANCASTER AND

WESTSIDE UNION SCHOOL DISTRICT
This School Law Enforcement Services Agreement for School Resource Officer Program ("Agreement") is made and entered into this ____ day of _____, 2025, by and between the CITY OF LANCASTER, a municipal corporation and charter city (“City”) and the WESTSIDE UNION SCHOOL DISTRICT ("District") (collectively, sometimes referred to hereinafter as the “Parties”).

RECITALS
(a) Whereas, the City of Lancaster Police Department “Department” operates a School Resource Officer Program which provides full-time law enforcement services to schools and school districts within the City of Lancaster and Los Angeles County; and (b) Whereas, the District is desirous of contracting with the City for the performance of law enforcement services by the Department as described herein; and (c) Whereas, the City is agreeable to rendering such services on the terms and conditions set forth in this Agreement; and
(d) Whereas, this Agreement is authorized by California Government Code Sections 53060 and 53069.8, and/or California Education Code Section 35160.

NOW THEREFORE, in consideration of the mutual covenants contained herein, and for good and valuable consideration, the parties hereby agree as follows:

Parties to the Agreement
The parties to this Agreement are:

A. City: City of Lancaster
B. District: Westside Union School District

1.0 SCOPE OF SERVICES

1.1 The City agrees, through the City of Lancaster’s Police Department, to provide law enforcement services for the District to the extent and in the manner set forth in this Agreement, including Exhibit A, Scope of Work. Exhibit A, Scope of Work, delineates the responsibilities of the School Resource Officers.

1.2 Except as otherwise specifically set forth in this Agreement, law enforcement services shall encompass duties and functions of the type coming within the jurisdiction of and customarily rendered by the Department under the Charter of the City and the statutes of the State of California.

2.0 ADMINISTRATION OF PERSONNEL

2.1 The rendition of the services performed by the Department, the standards of performance, the discipline of Officers, and other matters incidental to the performance of such services and the control of personnel so employed shall remain with the City.

2.2 In the event of a dispute between the parties to this Agreement as to the extent of the duties and functions to be rendered hereunder, or the minimum level or manner of performance of such service, the District shall be consulted, and a mutual determination thereof shall be made by both the Department and the District.

2.3 With regard to sections 2.1 and 2.2 above, the Department, in an unresolved dispute, shall have final and conclusive determination as between the parties hereto.

2.4 All District employees who work in conjunction with the Department pursuant to this Agreement shall remain employees of the District and shall not have any claim or right to employment, civil service protection, salary, or benefits or claims of any kind from the City based on this Agreement. No District employees shall become employees of the City.

2.5 For the purpose of performing services and functions pursuant to this Agreement and only for the purpose of giving official status to the performance thereof, every Department Officer and/or employee engaged in performing any such service and function shall be deemed to be a representative of the District while performing such service for the District, as long as the service is within the scope of this Agreement.

2.6 The District shall not be called upon to assume any liability for the direct payment of any Department salaries, wages, or other compensation to any City personnel performing services hereunder for said District. Except as herein otherwise specified, the District shall not be liable for compensation or indemnity to any City employee or agent of the City for injury or sickness arising out of his/her employment as a contract employee of the District.

2.7 As part of its compliance with all applicable laws and regulations relating to employee hiring, the City agrees that the City Civil Service Rules to which it is subject, and which prohibit discrimination on the basis of non-merit factors, shall for purposes of this Agreement be read and understood to prohibit discrimination on the basis of sexual orientation.

3.0 DEPLOYMENT OF PERSONNEL

3.1 As requested by the District, law enforcement services under this Agreement may be performed on all Westside Union School District Campuses. The Lancaster Police Department shall assign two dedicated School Resource Officers to the District.

The District consists of 12 schools, serving TK through 8th Grade. SROs will be primarily assigned at Hillview Middle School and Joe Walker Middle School, however, will respond to any of the 10 elementary schools as requested by District administration.

3.2 This Agreement covers 190 days of the regularly scheduled academic school year. The Department’s School Resource Officer (SRO) daily working hours are eight hours per day, five days per week, excluding weekends and holidays. SRO hours are typically 7:00 am to 3:00 pm. Each school and the Department command may agree to adjust the normal start time for the SRO to be within one hour of the typical start time.

3.3 SRO summer school coverage is available via this Agreement at the then- applicable rate set forth in Exhibit B- Rate Schedule, upon request and subject to availability of Department personnel.

3.4 If summer school coverage is provided hereunder, SRO summer school coverage would be provided eight hours per day, typically from 7:00 am to 3:00 pm.

Each school and the Department command may agree to adjust the normal start time for the SRO to be within one hour of the typical start time. There are no minimum days per week for SRO summer school coverage. If a change occurs to a scheduled SRO summer school session shift (cancellation, change of start time, etc.), the school shall notify the Department command at least twenty-four hours before the start of the shift to be changed.

3.5 SRO hours are not adjustable to provide coverage for after school special events; however, the District may request additional hours of service in order to obtain as needed supplemental law enforcement services for said special events, for which the District shall pay the then-applicable rate set forth in Exhibit B- Rate Schedule.

3.6 As requested by the District, the Department shall provide personnel to perform services under this Agreement as set forth In Exhibit A – Scope of Work.

3.7 A new Exhibit A – Scope of Work of this Agreement and Exhibit B - Rate Schedule, shall be authorized and signed annually by the District and the City on or before July 1, and attached hereto as an Amendment to this Agreement, to reflect the level of service and hourly rate for the upcoming Agreement year.

3.8 Should the District request a change in the level of service other than pursuant to the annual July 1 readjustment, an additional Exhibit A - Scope of Work, shall be signed and authorized by the District and the City and attached hereto as an Amendment to this Agreement, to reflect the revised level of service.

3.9 The Exhibit A - Scope of Work, and Exhibit B – Rate Schedule attached to this Agreement shall be the staffing level in effect between the Department and the District unless and until amended by written agreement of the Parties.

4.0 PERFORMANCE OF AGREEMENT

4.1 For the purpose of performing law enforcement services, the City shall furnish and supply all necessary labor, supervision, equipment, communication facilities, and supplies necessary to maintain the agreed level of service to be rendered hereunder.

4.2 Notwithstanding the foregoing, the District may provide additional resources for the City to utilize in the performance of the services.

4.3 It is mutually agreed that in all instances where special supplies, stationery, notices, forms, and the like must be issued in the name of said District, the same shall be supplied by the District at its own cost and expense.

5.0 INDEMNIFICATION

5.1 Subject to the limitations stated in this Section 5.0, Indemnification, or elsewhere, the City shall indemnify, defend, and hold harmless the District, its officers, directors, employees, and agents (collectively, "District Indemnified Parties") from and against any and all liability, expense (including but not limited to defense costs and attorney's fees), claims, causes of action, and lawsuits for damages, including, but not limited to, bodily injury, death, personal injury or property damage (including property of the City) to the extent caused by any negligent, intentional, or reckless act or omission of the City, its Agencies and Departments, their respective Police Officers, elected and appointed officials, directors, employees, agents, or representatives while providing services under this Agreement. With respect to any action or claim within the scope of this Section 5.1, the City shall have the right to use counsel of its own choice, at its sole costs and expense, to defend District Indemnified Parties, and shall have the right to adjust, settle, or compromise any such action or claim without the prior consent of the District Indemnified Parties; provided, however, that such adjustment, settlement, or compromise in no manner whatsoever limits or circumscribe the City's indemnification of the District Indemnified Parties. The City's obligations hereunder shall be satisfied when the City has provided to the District Indemnified Parties the appropriate form of dismissal (or similar document) relieving the District from any and all liability for the action or claim involved.

5.2 Notwithstanding anything contained herein or stated elsewhere, the City shall have no obligation or liability, including any obligation to indemnify or defend any District Indemnified Parties (a) based or asserted upon any failure to prevent any crime or tortious act,(b) for any injury, loss, or damage caused directly or indirectly by a criminal or tortious act of anyone other than the City, its Agencies and Departments, their respective Police Officers, elected and appointed officials, directors, employees, agents, or representatives, while providing services under this Agreement, or (c) for any injury, loss or damage caused by any means whatsoever based or asserted upon any failure to be at any specific location at any time(s) while performing services under this Agreement

5.3 The District understands and agrees that the school law enforcement services and the school resource officers provided hereunder are not intended or expected to accomplish patrolling or law enforcement at any particular school at any particular time, or to prevent crime or wrongdoing from occurring at any particular place or time.

5.4 Notwithstanding anything contained herein, the City's obligations hereunder to the District or any District Indemnified Party shall be limited by any immunity or freedom from suit or liability provided by law, including but not limited to those stated in California Government Code sections 818.2 and 845, as if such immunity or legal provision were incorporated in full in this Agreement and made applicable to the District and all District Indemnified Parties.

5.5 The District shall indemnify, defend, and hold harmless the City, its Agencies and Departments, their respective Officers, elected and appointed officials, directors, employees, agents, and representatives (collectively, "City Indemnified Parties'') from and against any and all liability, expense (including, but not limited to defense costs and attorneys' fees), claims, causes of action, and lawsuits for damages of any nature whatsoever, including but not limited to bodily injury, death, personal injury or property damage (including property of the District), based or asserted upon any act or omission of the District, its officers, directors, employees, agents, or representatives arising out of or in any way relating to this Agreement. With respect to any action or claim within the scope of this Section 5.5, the District shall have the right to use counsel of its own choice, at its sole cost and expense, to defend the City Indemnified Parties and shall have the right to adjust, settle, or compromise any such action or claim without the prior consent of the City Indemnified Parties if the indemnity tender by the City Indemnified Parties is accepted without a reservation of rights; provided, however, that such adjustment, settlement, or compromise in no manner whatsoever limits or circumscribes District's indemnification of the City Indemnified Parties. The District's obligations hereunder shall be satisfied when the District has provided to the City Indemnified Parties the appropriate form of dismissal (or similar document) relieving the City Indemnified Parties from any and all liability for the action or claim involved. Any insurance coverage shall in no way limit or circumscribe the District's obligations to indemnify and hold harmless the City.

5.6 The District shall provide and maintain a program of liability insurance, which includes comprehensive general liability and comprehensive auto liability coverage, a program of self-insurance, or any combination thereof at the District's sole option and discretion, to satisfy the District's indemnity obligations under this Agreement.

5.7 This Section 5.0, Indemnification, shall survive termination of this Agreement and/or final payment thereunder.

6.0 INSURANCE

6.1 The District, at its expense, shall maintain in effect at all times during the term of this Agreement the following coverage and limits of insurance, which shall be maintained with insurers listed “A-, VIII” or better in the Best’s Key Rating Guide:

Commercial General Liability
Each Occurrence $1,000,000
Per Project General Aggregate $2,000,000
Including Products/Completed Operations; Contractual
Liability/Independent Contractors; Property Damage
(Coverage shall be at least as broad as ISO form CG2010 11/85 or CG2010 07/04 and CG2037 07/04 combined, or an equivalent providing ongoing and completed operations)

6.2 All insurance shall be primary and non-contributory as respects the City insured entities. Any insurance or self-insurance maintained by the City insured entities shall be in excess of the District’s insurance and shall not contribute with it.

6.3 District shall furnish the City with Certificates of Insurance and with endorsements effecting coverage required by this Agreement. Certificates of Insurance shall meet the following requirements:

6.3.1 Show that the insurance policy has been endorsed to state that coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except after 30 days’ prior written notice (10 days’ written notice for non-payment) to the City of Lancaster.

6.3.2 List in the “Descriptions of Operations/Locations/Vehicles” section:
“SCHOOL RESOURCE OFFICER PROGRAM”
The City of Lancaster, its elected officials, officers, employees and volunteers are included as additional covered parties, but only insofar as the operations under this contract are concerned.”

6.3.3 List in the “Certificate Holder” section:

The City of Lancaster, 44933 Fern Avenue, Lancaster, California 93534.

7.0 TERM OF AGREEMENT
The term of this Agreement shall commence July 31, 2025, through June 6, 2026, unless sooner terminated.

8.0 RIGHT OF TERMINATION

8.I This Agreement may be terminated at any time, with or without cause, by either party upon written notice given to the other party at least sixty (60) calendar days before the date specified for such termination.

8.2 In the event of a termination, each party shall fully discharge all obligations owed to the other party accruing prior to the date of such termination, and each party shall be released from all obligations, which would otherwise accrue subsequent to the date of termination.

9.0 BILLING RATES

8.1 For and in consideration of the rendition of the law enforcement services to be performed by the Department for the District under this Agreement, the District shall pay the City for said services provided by City under the terms of this Agreement at the appropriate and prevailing billing rates set forth on Exhibit B – Rate Schedule, as established by the City Senior Finance Director.

9.2 The billing rates set forth on Exhibit B – Rate Schedule, shall be readjusted annually by the Senior Finance Director effective July 1 of each year to reflect the cost of such service.

10.0 PAYMENT PROCEDURES

10.1 The City, through the Department, shall render to the District a summarized invoice which covers all services performed during said month, and the District shall pay City for all undisputed amounts within sixty (60) calendar days after the date of said invoice.

10.2 If such payment is not delivered to the City office, which is described on said invoice, within sixty (60) calendar days after the date of the invoice, the City is entitled to recover interest thereon.

10.3 In the event of any disputed amounts, the District shall provide the City with written notice of the dispute including the invoice date, amount, and reasons for dispute within ten (10) calendar days after receipt of the invoice. The parties shall memorialize the resolution of the dispute in writing. For any disputed amounts, interest shall accrue if payment is not received within sixty (60) calendar days after the dispute resolution is memorialized.

10.4 Said interest shall be at a rate of ten percent (10%) per annum or any portion thereof, calculated from the date payment was due pursuant to Section 10.2 and Section 10.3 above.

10.5 Notwithstanding the provisions of California Government Code section 907, if payment is not delivered to the City office which is described on said invoice within sixty (60) calendar days after date of the invoice or the date of memorialized resolution, then the City may satisfy such indebtedness, including interest thereon, from any funds of the District on deposit with the City without giving further notice to the District of the City's intention to do so.

11.0 AMENDMENTS
All changes, modifications, or amendments to this Agreement must be in the form of a written Amendment duly executed by authorized personnel of the City and the District.

12.0 ASSIGNMENT, DELEGATION, AND SUBCONTRACTING
A party shall not assign its rights and/or subcontract, or otherwise delegate, its duties under this Agreement, either in whole or in part, without the prior written consent of the other party, and any attempted assignment or delegation without such consent shall be null and void.

13.0 AUTHORIZATION WARRANTY
The District represents and warrants that the person executing this Agreement for the District is an authorized agent who has actual authority to bind the District to each and every term, condition, and obligation of this Agreement and that all requirements of the District have been fulfilled to provide such actual authority.

14.0 GOVERNING LAW, JURISDICTION, AND VENUE
This Agreement shall be governed by, and construed in accordance with, the laws of the State of California. The parties agree and consent to the exclusive jurisdiction of the courts of the State of California for all purposes regarding this Agreement and further agree and consent that venue of any action brought hereunder shall be exclusively in the County of Los Angeles.

15.0 NOTICES
Unless otherwise specified herein, all notices or demands required or permitted to be given or made under this Agreement shall be in writing and shall be hand delivered with signed receipt or mailed by first class registered or certified mail, postage prepaid, addressed to the parties at the following addresses and to the attention of the person named. Addresses and persons to be notified may be changed by either party by giving ten (10) calendar days prior written notice thereof to the other party.

Notices to the City shall be addressed as follows:

City of Lancaster Police Department
Attn: Rodrick Armalin, Police Chief
44933 Fern Avenue
Lancaster, California 93534
Notices to the District shall be addressed as follows:

Westside Union School District
Attn:
41914 50th Street West
Quartz Hill. CA 93536

16.0 VALIDITY
If any provision of this Agreement or the application thereof to any person or circumstance is held invalid, the remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected thereby.

17.0 WAIVER
No waiver by the parties of any breach of any provision of this Agreement shall constitute a waiver of any other breach or of such provision. Failure of the parties to enforce at any time, or from time to time, any provision of this Agreement shall not be construed as a waiver thereof.

18.0 ENTIRE AGREEMENT
This Agreement, including Exhibits A and B, and any executed Amendments hereto or thereto, constitute the complete and exclusive statement of understanding of the parties which supersedes all previous agreements, written or oral, and all communications between the parties relating to the subject matter of this Agreement. No change to this agreement shall be valid unless prepared pursuant to Section 11.0, Amendments, of this Agreement and signed by both parties.

IN WITNESS WHEREOF, the City of Lancaster City Council has caused this Agreement to be executed on its behalf by the Lancaster Police Department, and the District has caused this Agreement to be executed on its behalf by its duly authorized officer. on the dates written below.

CITY OF LANCASTER

LANCASTER, CALIFORNIA
By: ______________________________
Trolis Niebla, City Manager
Date: ______________________________

WESTSIDE UNION SCHOOL DISTRICT

QUARTZ HILL, CALIFORNIA
By: _______________________________

(Name, Title)
Date: _____________________________
ATTEST:

City Clerk
APPROVED AS TO FORM:

City Attorney

EXHIBIT A

SCOPE OF WORK

SCOPE OF WORK
The School Resource Officer (SRO) primary responsibilities are the following:

SAFETY AND SECURITY
Ensure Safety: Work to maintain a safe and secure environment on school premises.

This includes monitoring school grounds, surrounding areas, and responding promptly to any incidents of potential criminal conduct or emergencies.

Crisis Management: Respond to and handle crisis situations, such as lockdowns, threats, or other law-enforcement related emergencies.

Work with School Staff: Collaborate with school administrators, teachers, and counselors to be an active part of the school community. The SRO shall collaborate with the school administrators in maintaining a school safety plan.

LAW ENFORCEMENT DUTIES
Foster Positive Relationships: Build trust and positive relationships with students, faculty, and parents. SRO shall be approachable and accessible to address their concerns and work toward establishing a positive learning environment Trespass Prevention: Deter trespassers and unauthorized individuals from entering school property.

Enforce the Law: Detain or arrest persons who violate the law within the school premises. This includes laws encompassed by the California Penal Code, Vehicle Code, Health & Safety Code and Welfare & institutions Code.

The SRO shall adhere to Department policy as it relates to juvenile detention, transportation, booking, and release.

SROs shall follow all federal/state laws and regulations, Department Policy and Procedures, and any SRO Manual as may be adopted from time to time.

SROs shall not be present to enforce school rules or administrative discipline on students. SROs shall only take law enforcement action when criminal conduct is involved.

SROs are prohibited from participating in school-based discipline, including detentions, suspensions, expulsions, or truancy unless the truancy is for off-campus conduct (i.e., students off school grounds during school hours).

SRO response to school staff calls for service relating to student conduct shall only be for suspected criminal conduct.

LAW-RELATED RESOURCES
Community Outreach: Provide law related educational information to students, faculty, and parents. Topics can include but are not limited to information about the law, personal rights, free community programs, health awareness and youth & child safety.

LPD TRAINING RESPONSIBILITIES
All SROs shall attend the POST 40-hour School Resource Officer training. Topics may include, but are not limited to, youth de-escalation strategies, child and adolescent social emotional development and mental health Issues, cultural competency, federal and state disability, anti-discrimination, and special education laws, positive behavioral supports, strategies, and Interventions, restorative Justice practices, trauma-informed practices for youth, American with Disabilities training, mandatory reporting requirements, school safety planning, crisis response, ethics, adolescent mental health, juvenile law, community youth program, school safety and emergency operations.

EXHIBIT B

RATE SCHEDULE

SCHOOL LAW ENFORCEMENT SERVICES
FISCAL YEAR:2025-2026 EFFECTIVE DATE: July 1, 2025
Classification Hourly Rate
Officer w/ Patrol Vehicle $153.74

STAFF REPORT
Lancaster Housing Authority
HA CC 1
7/8/2025
TN
Date: July 8, 2025
To: Mayor Parris and City Council Members
From: Patti Garibay, Director - Community Development
Nicole Jones, Senior Analyst – Community Development
Subject: Approve Professional Services Agreement with Affordable Housing Solutions & Development of Southern California, LLC.

Recommendations:
a. Approve Professional Services Agreement with Affordable Housing Solutions & Development of Southern California, LLC. under the Housing Authority instead of the City of Lancaster through August 2026.
b. Authorize the Executive Director, or his designee, to finalize and execute all documents related to the Agreement.

G.C. Section 84308: No
Fiscal Impact:

No additional fiscal impact other than in previously approved amendment on April 8, 2025.

Background:

In May 2022, the City entered into an agreement with consultant Affordable Housing Solutions (AHS) following a Request for Proposals (RFP) process to procure technical assistance services related to affordable housing projects, programs, and funding sources. Examples of services provided to-date by AHS have included assistance with drafting Requests for Proposals consistent with the requirements of former state Redevelopment Law (RDA) and the state Surplus Land Act (SLA), providing technical services and assistance to draft and carry out Disposition & Development Agreements, monitoring emerging funding sources and Notice of Funding Availability (NOFA) schedules, preparing funding applications to state and federal sources, and providing expert advice to support miscellaneous programs and projects. The initial agreement and first amendment were approved by the City of Lancaster, with the second 2 1
1 0
amendment being approved by the Lancaster Housing Authority. Staff propose to move the agreement under the Lancaster Housing Authority due to consistency in the type of projects that AHS consistently works on. The terms of the agreement, first and second amendments, will stay in effect, and the new expiration date will be August 2026.

NJ/gb
Attachment:

Affordable Housing Solutions Professional Services Agreement_2025 Rev 1/2019

AGREEMENT FOR PROFESSIONAL CONSULTING SERVICES

THIS AGREEMENT FOR CONSULTING SERVICES (this “ AGREEMENT”) is made and entered into this 7 day of July, 2025, by and between the LANCASTER HOUSING AUTHOR ITY, a municipal corporation and charter city (the “OWNER”), and AFFORDABLE HOUSING SOLUTIONS & DEVELOPMENT OF SOU THERN CALIFORNIA, LLC, a California Limited Liability Company . (the “CONSULTANT”).

RECITALS

WHEREAS, OWNER desires to engage CONSULTANT to perform certain technical and professional services, as provided herein, identified as:

AFFORDABLE HOUSING FINANCIAL AND DEVELOPMENT ADVISOR

WHEREAS, the principal members of CONSULTANT are qualified and duly registered/licensed under the laws of the State of California, and CONSULTANT desires to accept such engagement.

NOW, THEREFORE, the parties agree as follows:

1. Parties.

The parties to this AGREEMENT are:

A. OWNER: City of Lancaster.

B. CONSULTANT: Affordable Housing Solutions and Development of Southern California, LLC

2. Notices. All written notices required by or related to this AGREEMENT shall be sent by Certified Mail, Return Receipt Requested, postage prepaid and addressed as listed below. Neither party to this AGREEMENT shall refuse to accept such mail; parties to this AGREEMENT shall promptly inform the other party of any changes of address. All notices required by this AGREEMENT are effective on the day of receipt, unless otherwise indicated herein.

OWNER Trolis Niebla, Executive Director
City of Lancaster
44933 North Fern Avenue
Lancaster, California 93534

CONSULTANT Timothy Sales
Affordable Housing Solutions and Development of Southern California, LLC
275 Anita Drive
Pasadena, CA 91105

3. Successors and Assigns. The terms hereof shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto; provided, however, that no party hereto shall assign Rev 1/2019
any of the benefits and burdens hereunder, whether voluntarily or by operation of law, without prior written consent of the other party, and any such assignments without said consent shall be void.

4. Incorporation by Reference. The CONSULTANT’S Proposal is hereby incorporated in and made a part of this AGREEMENT. CONSULTANT agrees to comply with all of the requirements set forth therein.

5. Precedence of AGREEMENT Documents . If there is a conflict between AGREEMENT documents, the document highest in precedence shall control. The precedence shall be:

First: This AGREEMENT
Second: The CONSULTANT’S Proposal

6. Description of Work. OWNER hereby engages CONSULTANT, and CONSULTANT accepts such engagement, to perform the technical and professional services set forth in the “Scope of Services” attached hereto as Exhibit “ A”. CONSULTANT shall perform and complete, in a manner satisfactory to OWNER, all work and services set forth in the Scope of Services. The Executive Director or his or her designee shall have the right to review and inspect the work during the course of its performance at such times as may be specified by the Executive Director, or his or her designee.

7. Obligations of the OWNER.

A. The total compensation to be paid by OWNER to CONSULTANT for all work and services described in the Scope of Services is not to exceed $190,200 for the term of the contract as stated in Exhibit “A” attached hereto. CONSULTANT’S fees and charges for the work and services performed shall in no event exceed those set forth in Exhibit “A” attached hereto and made a part hereof.

B. No payment made hereunder by OWNER to CONSULTANT, other than the final payment, shall be construed as an acceptance by OWNER of any work or materials, nor as evidence of satisfactory performance by CONSULTANT of its obligations under this AGREEMENT.

8. Obligations of the CONSULTANT.

A. CONSULTANT shall perform as required by this AGREEMENT.

CONSULTANT also warrants on behalf of itself and all subcontractors engaged for the performance of this AGREEMENT.

B. CONSULTANT shall be responsible for payment of all employees' and subcontractor's wages and benefits, and shall comply with all requirements pertaining to employer's liability, workers' compensation, unemployment insurance, and Social Security.

9. Audit. OWNER shall have the option of inspecting and/or auditing all records and other written materials used by CONSULTANT in preparing its statements to OWNER as a condition precedent to any payment to CONSULTANT.

10. Hold Harmless and Indemnification . Consultant agrees to indemnify and hold harmless the City, its elected officials, officers and employees, from and against any and all third -party claims, losses, obligations, or liabilities whatsoever, including reasonable attorney’s fees, incurred to the extent arising out of or related to Consultant’s negligent or willful wrongful acts, errors or omissions, or Rev 1/2019
those of its employees or agents. Consultant agrees to defend the City, its officers and employees from and against any and all claims covered by the indemnity in the preceding sentence.

11. Amendments. Any amendment, modification, or variation from the terms of this AGREEMENT shall be in writing and shall be effective only upon mutual written approval by the Executive Director, or his or her designee, and CONSULTANT.

12. Non-Discrimination and Equal Employment Opportunity.

A. In the performance of this AGREEMENT, CONSULTANT shall not discriminate against any employee, subcontractor, or applicant for employment because of race, color, religion, ancestry, sex, national origin, physical or mental disability or age. CONSULTANT will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment without regard to their race, color, religion, ancestry, sex, national origin, physical or mental disability or age. Affirmative action relating to employment shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment; layoff or termination; rates of pay or other forms of compensation; and selection for training including apprenticeship.

B. The provisions of subsection A above shall be included in all solicitations or advertisements placed by or on behalf of CONSULTANT for personnel to perform any services under this AGREEMENT. OWNER shall have access to all documents, data and records of C ONSULTANT and its subcontractors for purposes of determining compliance with the equal employment opportunity and non-discrimination provisions of this Section.

13. Termination for Convenience . The governing board of the OWNER may terminate this AGREEMENT at any time without cause by giving fifteen (15) days written notice to CONSULTANT of such termination and specifying the effective date thereof. In that event, all finished or unfinished documents and other materials shall, at the option of OWNER, become the OWNER's property. If this AGREEMENT is terminated by OWNER as prov ided herein, CONSULTANT will be paid a total amount equal to its costs as of the termination date, plus ten percent (10%) of that amount for profit. In no event shall the amount payable upon termination exceed the total maximum compensation provided for in this AGREEMENT.

14. Termination for Cause.

A. The governing board of the OWNER may, by written notice to CONSULTANT, terminate the whole or any part of this AGREEMENT in any of the following circumstances:

(1) If CONSULTANT fails to perform the services required by this AGREEMENT within the time specified herein or any authorized extension thereof; or

(2) If CONSULTANT fails to perform the services called for by this AGREEMENT or so fails to make progress as to endanger performance of this AGREEMENT in accordance with its terms, and in either of these circumstances does not correct such failure within a period of ten (10) days (or such longer period that OWNER may authorize in writing) after receipt of notice from OWNER specifying such failure.

B. In the event OWNER terminates this AGREEMENT in whole or in part as provided above in paragraph A of this Section, OWNER may procure, upon such terms and in such manner as it may deem appropriate, services similar to those terminated.

C. If this AGREEMENT is terminated as provided above in paragraph A, OWNER may require CONSULTANT to provide all finished or unfinished documents, data, studies, drawings, Rev 1/2019
maps, photographs, reports, etc., prepared by CONSULTANT. Upon such termination, CONSULTANT shall be paid an amount equal to the contract amount, less the cost of hiring another CONSULTANT to complete CONSULTANT's services. In the event no new CONSULTANT is employed, CONSULTANT shall be paid an amount equal to the value of the work performed. In ascertaining the value of the work performed up to the date of termination, consideration shall be given to completed work and work in progress, complete and inc omplete drawings, and other documents whether delivered to OWNER or in possession of CONSULTANT, and authorized reimbursement expenses.

D. If, after notice of termination of the AGREEMENT under the provisions of this Section, it is determined, for any reason, that CONSULTANT was not in default, or that the default was excusable, then the rights and obligations of the parties shall be the sam e as if the notice of termination had been issued pursuant to Section 14.

15. Independent Contractor. CONSULTANT is an independent contractor and shall have no power or authority to incur any debt, obligation or liability on behalf of the OWNER. It is expressly understood between the parties to this AGREEMENT that no employee/employer relationship is intended; CONSULTANT is an independent contractor.

16. Insurance.

A. The Consultant, at its expense, shall maintain in effect at all times during the term of this Agreement the following coverage and limits of insurance, which shall be maintained with insurers listed “A-, VIII” or better in the Best’s Key Rating Guide:

Commercial General Liability
Each Occurrence $1,000,000
Per Project General Aggregate $2,000,000
Including Products/Completed Operations ; Contractual Liability/Independent Contractors ; Property Damage
(Coverage shall be at least as broad as ISO form CG2010 11/85 or CG2010 07/04 and CG2037 07/04 combined, or an equivalent providing ongoing and completed operations)

Commercial Automobile Liability
Combined Single Limit per Accident for
Bodily Injury and Property Damage $1,000,000
(Coverage shall be at least as broad as ISO form CA00 01)

Workers Compensation
As Required by the State of California Statutory Limits

Employer’s Liability
Each Accident $1,000,000
Bodily Injury by Disease $1,000,000
Each Employee $1,000,000
(A Waiver of Subrogation must be provided on behalf of the Certificate Holder for the Workers Compensation & Employers’ Liability policies)

Professional Liability
Each Occurrence $1,000,000
General Aggregate $1,000,000

Rev 1/2019

B. The Consultant’s Commercial General Liability insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insured’s liability.

C. Professional liability insurance written on a “claims made” basis must be renewed for a period of three (3) years after this contract expires or is terminated. Such insurance must have the same coverage and limits as the policy that was in effect during the term of this contract and will cover Consultant for all claims made by the City insured entities arising out of any negligent acts or omissions of Consultant or its officers, employees, or agents during the time this Agreement was in effect.

D. Any deductibles or self-insurance retentions must be declared and approved by the City. At the City’s option, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City insured entities or the insurer shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.

E. All insurance shall be primary and non-contributory as respects the City insured entities. Any insurance or self-insurance maintained by the City insured entities shall be in excess of the Consultant’s insurance and shall not contribute with it.

F. Consultant shall furnish the City with Certificates of Insurance and with original endorsements effecting coverage required by this Agreement. Certificates of Insurance shall meet the following requirements:
(1) Show that the insurance policy has been endorsed to state that coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except after 30 days’ prior written notice (10 days’ written notice for non-payment) to the City of Lancaster.

(2) List in the “Descriptions of Operations/Locations/Vehicles/Special Items” section:

City of Lancaster, its elected officials, officers, employees and volunteers are included as additional covered parties, but only insofar as the operations under this contract are concerned.

(3) List in the “Certificate Holder” section:

The City of Lancaster, 44933 Fern Avenue, Lancaster, California 93534.

18. Commencement and Completion of Work. The Services to be provided by Consultant pursuant to this Agreement shall commence within 15 days after execution of this Agreement, and shall be completed upon the agreed upon timeline in the scope of work following commencement; provided however, that the Parties may agree to extend the time for completion upon mutual written agreement.

CONSULTANT shall have no claim for compensation for any services or work which has not been authorized by the OWNER's Notice to Proceed.

19. Extension of Time for Completion of Work.

A. If, at any time, the work is delayed due to suspension order by OWNER, or due to any other cause which, in the reasonable opinion of the OWNER, is unforeseeable and beyond the control Rev 1/2019
and not attributable to the fault or negligence of CONSULTANT, then CONSULTANT shall be entitled to an extension of time equal to said delay, subject to the OWNER's right to terminate this AGREEMENT pursuant to Section 14.

B. CONSULTANT shall submit to OWNER a written request for an extension of time within ten (10) days after commencement of such delay, and failure to do so shall constitute a waiver thereof. OWNER shall, in its sole discretion, determine whether and to what extent any extensions of time shall be permitted.

C. No extension of time requested or granted hereunder shall entitle CONSULTANT to additional compensation unless, as a consequence of such extension, additional work must be performed. In such event, OWNER shall in good faith consider any request for addit ional compensation submitted by CONSULTANT.

20. Ownership of Documents. All plans, specifications, reports, studies, tracings, maps and other documents prepared or obtained by CONSULTANT in the course of performing the work required by this AGREEMENT shall be the property of the OWNER. Basic survey notes, sketches, charts, computations and similar data prepared or obtained by CONSULTANT under this AGREEMENT shall, upon request, be made available to OWNER without restriction or limitation on their use.

21. Data Provided to CONSULTANT. OWNER shall provide to CONSULTANT, without charge, all data, including reports, records, maps and other information, now in the OWNER's possession which may facilitate the timely performance of the work described in the Scope of Services.

22. CONSULTANT's Warranties and Representations . CONSULTANT warrants and represents to OWNER as follows:

A. CONSULTANT has not employed or retained any person or entity, other than a bona fide employee working exclusively for CONSULTANT, to solicit or obtain this AGREEMENT.

B. CONSULTANT has not paid or agreed to pay any person or entity, other than a bona fide employee working exclusively for CONSULTANT, any fee, commission, percentage, gift, or any other consideration contingent upon or resulting from the execution of this AG REEMENT. Upon any breach or violation of this warranty, OWNER shall have the right, in its sole discretion, to terminate this AGREEMENT without further liability, or, in the alternative, to deduct from any sums payable hereunder the full amount or value of any such fee, commission, percentage or gift.

C. CONSULTANT has no knowledge that any officer or employee of the OWNER has any interest, whether contractual, noncontractual, financial, proprietary, or otherwise, in this transaction or in the business of the CONSULTANT, and that if any such interest comes to the knowledge of CONSULTANT at any time, a complete written disclosure of such interest will be made to OWNER, even if such interest would not be deemed a prohibited "conflict of interest" under applicable laws.

D. Upon the execution of this AGREEMENT, CONSULTANT has no interest, direct or indirect, in any transaction or business entity which would conflict with or in any manner hinder the performance of services and work required by this AGREEMENT, nor shall any such interest be acquired during the term of this AGREEMENT.

23. Resolution of Disputes.

A. Disputes regarding the interpretation or application of any provisions of this Rev 1/2019
Agreement shall, to the extent reasonably feasible, be resolved through good faith negotiations between the parties.

B. If the parties cannot resolve the dispute through good faith negotiations, either party may give Notice of Dispute to the other party. The Notice of Dispute shall state the nature of the dispute and the corrective action necessary to remedy the dispute.

After Notice of Dispute, the parties shall first attempt to resolve any disputes by mediation. The parties shall agree on a single mediator. Mediation shall be conducted in Lancaster, California. Each party shall pay its own attorneys’ fees and the costs of mediation shall be split equally between the parties.

If the dispute has not been resolved by mediation within 45 days after Notice of Dispute, or the parties are unable to agree to a mediator, within 15 days after Notice of Dispute, then, the dispute may, upon agreement of the parties be resolved by binding arbitration.

C. If any action at law or in equity is brought to enforce or interpret any provisions of this Agreement, each party shall bear its own attorney fees, costs and expenses.

24. Exhibits. The following exhibits to which reference is made in this AGREEMENT are deemed incorporated herein in their entirety:

Exhibit "A" Scope of Services and Term

25. Governing Law . This AGREEMENT shall be governed by the laws of the State of California.

26. Effective Date. This AGREEMENT shall become effective as of the date set forth below on which the last of the parties, whether OWNER or CONSULTANT, executes this AGREEMENT.

Rev 1/2019
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested by their respective officers thereunto duly authorized.

CITY OF LANCASTER

LANCASTER, CALIFORNIA

By:

Trolis Niebla, Executive Director

Dated:

AFFORDABLE HOUSING SOLUTIONS &

DEVELOPMENT OF SOUTHERN CALIFORNIA, LLC

By:

Timothy Sales

Dated:

ATTEST:

City Clerk

APPROVED AS TO FORM:

Risk Management Approved
City Attorney

CONTRACT SUBMISSION APPROVAL:

Director

For use with Licenses, Permits, POs, and RFPs

California Levine Act Statement
California Government Code Section 84308, commonly referred to as the "Levine Act," prohibits any Lancaster official from participating in any action related to a contract or application if he or she receives any political contributions totaling more than $250 within the previous twelve months, and for twelve months following the date a final decision is rendered.

The Levine Act also requires a Lancaster City official who has received such a contribution to disclose the contribution on the record of the proceeding.

Current Lancaster City Council Members are listed at:
https://www.cityoflancasterca.org/government/city-officials/city-council-copy

Current Planning Commissioners are listed at:
https://www.cityoflancasterca.org/government/commissions-appointments/planning

Proposers are responsible for accessing this link to review the names prior to answering the following questions.

1. Have you or your company, or any agent/board member on behalf of you or your company/entity, made any political contributions of more than $250 to any Lancaster City Council Member or other city official in the 12 months preceding the date of the submission of your proposal or application, or the anticipated date of any Council action?

YES If yes, please identify the Council Member(s)/city official(s):

2. Do you or your company/entity, or any agency on behalf of you or your company/entity, anticipate or plan to make any political contribution of more than $250 to any Lancaster City Council Member or other city official in the 12 months following any Council action related to your proposal or application?

YES If yes, please identify the Council Member(s) /city official(s):

NO (Please note that if this is a contract lasting more than one (1) year that you must update this form if there are any contributions made after the contract is awarded)

Answering yes to either of the two questions above does not preclude the Lancaster City Council from awarding a contract or approving an application or any subsequent action. It does however, preclude the identified Council Member (s) from participating in any actions related to your proposal or application.

_________________ _____________________________
Date Signature of authorized individual

_____________________________
Company/Applicant Name
X
X
Affordable Housing Solutions & Development
of Southern California, LLC
5/13/25
Rev 1/2019

EXHIBIT “A”

TERM AND SCOPE OF SERVICES

Term
This Agreement shall become effective and shall be in full force and effect upon the execution of the Agreement by the City and the CONTRACTOR. This Amendment shall continue in full force and effect until August 31, 2026.

Scope of Services

See Attached

EXHIBIT A

SCOPE OF SERVICES

AND RATES SCHEDULE
Consultant will provide professional affordable housing finance and development advisory services on an as-needed basis in the potential areas of engagement listed below. Services will be billed on a time & materials (T&M) basis against this contract authorization. Scope of Servi ces is illustrative and is to be prioritized based on Client needs and authorization. Consultant will manage work plan approach to each item in coordination with Client.

1. Manage RFP (Request for Proposal) processes and assist in selection of qualified real estate development firms or development-related contractors.
o HNR-1: On-going; services to be specifically covered by this contract include monitoring on- going environmental clean-up of site, selection of new developer, negotiation of a DDA and post- DDA required developer implementation support.

O HNR-3: Work with selected development team to negotiate ENA and DDA(s); finalize planning concepts for site; create federal, state, and local funding subsidy program strategy and schedule; identify other partners and stakeholder groups for participation in infrastructure improvements and community-based programs for the site and the surrounding neighborhoods, and other post- DDA required developer implementation support as necessary.

O
HNR-6, 7 & 9: Release RFP, select qualified developer, negotiate ENA and DDA(s), finalize planning concepts for site, create state and local funding strategy and schedule, and other post- DDA required developer implementation support as necessary.

2. Develop and implement Strategic Plan for marketing and development of LHA & City-owned properties, including:
o Other HNR scattered sites comprised located primarily in central and northeastern Lancaster O Herald Tract sites
O Other sites owned by City / Successor Agency

3. Work with developers of the HNR-sites to prepare applications for the Affordable Housing & Strategic Communities (AHSC) Program, including coordinating major transit improvements with local and regional transit agencies, and securing no-cost Technical Assistance though the state Housing & Community Development (HCD) Department.

4. Provide affordable housing finance and development advisory services in support of LHA- proposed affordable housing developments or affordable housing developments submitted by third- parties seeking financial or other assistance from City.

5. Provide assistance with motel conversions and other permanent supportive housing projects, including working with selected developers on potential funding opportunities for both acquisition/rehab and supportive services.

6. In early 2026, coordinate with City staff on the preparation of a new 5- Year Plan for the PLHA Program that meets state requirements for affordable homeownership, and includes an Activity for a Bolt & Brace Program for low- income homeowners.

7. Keep City staff apprised of local, state and HUD regulatory changes, as well as new resource opportunities.

8. Prepare annual reports and drawdowns (Requests for Funds), as well as assist with monitoring and compliance with state programs and regulations (I.e., PLHA 5-Year Plan, CalHome, etc.).

9. Prepare County, state and private funding applications, strategic plans, etc. as necessary.

10. Work with staff to implement Zoning Ordinance changes listed in Appendix 2 of the City's Prohousing application.

11. Provide other owners representative services in support of the needs of LHA efforts and site development.

Team Member Hourly Rates
Timothy Sales $225
Sue Sturmer $225
Allan D. Kotin $225

STAFF REPORT
City of Lancaster
HA CC 1
4/8/2025
TN
Date:April 8, 2025
To: Chair Parris and Housing Authority Members
From:Patti Garibay, Director - Community Development
Chris Aune, Housing Manager
Subject:Amendment to Professional Services Agreement with Affordable Housing Solutions & Development of Southern California, LLC.

Recommendation:

1. Approve the Second Amendment to the Affordable Housing Solutions & Development of Southern California, LCC Professional Services Agreement extending the term of the agreement by one (1) year for a total of five (5) years, increasing the annual not-to-exceed amount to $165,000 for the remainder of the contract, for a total contract amount not-to- exceed of $605,200, and updating and expanding the services to be provided to include those listed in Exhibit A.

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

G.C. Section 84308: No
Fiscal Impact:
$230,000 - an additional $25,200 for Year 3 (Aug 2024-Aug 2025), additional $40,000 for Year 4 (Aug 2025-Aug 2026), and $165,000 for Year 5 (Aug 2026-Aug 2027 - which is the proposed one-year extension of the contract) - all to be funded out of 31422000.5790.

Background:

Additional funding will be needed to compensate for the increase in the scope of work discussed in Exhibit “A”.

The updated and expanded services will include:
•Preparing a Strategic Plan for the Herald Tract sites and other miscellaneous vacant sites owned by the City;
•Coordinating the preparation of a new 5-Year Plan for the Permanent Local Housing Allocation (PLHA) Program;
•Monitoring the ongoing environmental clean-up of the HNR-1 site, then selecting a developer and negotiating a DDA in order to complete the disposition and development of the site;
•Finishing the process to secure a Prohousing designation for the City and then preparing an application for the City to receive an award of Prohousing Incentive Program (PIP) funds;
•Preparing annual reports for HCD programs and insuring timely and appropriate draw downs of funds; and
•Assisting developers and City staff with applications for the Affordable Housing & Strategic Communities (AHSC) Program, which involves significant funding for affordable workforce housing and local transit improvements.

Due to their extensive expertise, thorough familiarity with the City’s existing programs, experience with new funding sources, and current status assisting with the execution of several pending long- term projects, staff proposes to extend the existing Professional Services Agreement for a period of one (1) year.

CA/gb
Attachment:

Exhibit A – Amendment No. 2
Exhibit B – Amendment No. 1 and Original Professional Services Agreement AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT
This Amendment (“Amendment No. 1”) is hereby entered into effective August 8, 2023 by and between the City of Lancaster, a Municipal Corporation, in the State of California, and Affordable Housing Solutions & Development of Southern California, LLC (CONTRACTOR) with respect to Exhibit “B” of the Agreement for Services between the parties dated February 2, 2021 (“Agreement”).

The Parties agree as follows:

1. The term of the Agreement is extended to and including August 8, 2026.

2. Exhibit B to the Agreement is hereby deleted in its entirety and replaced with “Term, Payment and Time for Commencement and Completion Clause Update,” attached hereto as Exhibit “A”.

3. All other terms and provisions of the Agreement and subsequent amendments are hereby reaffirmed.

CITY OF LANCASTER CONTRACTOR
Affordable Housing Solutions
____________________________ __________________________ Jason Caudle, City Manager Timothy Sales, Principal
ATTEST:
____________________________
Andrea Alexander, City Clerk
____________________________
City Attorney
DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 X Risk Management Approval
Kathleen Stenback, Acting City Clerk

EXHIBIT “A”

EXHIBIT A - TERM, PAYMENT AND TIME FOR COMMENCEMENT AND

COMPLETION CLAUSE UPDATE
Term
This Agreement shall become effective and shall be in full force and effect upon the execution of the Agreement by the City and the CONTRACTOR. This Amendment shall continue in full force and effect for a period of three (3) additional years from the effective date of the Agreement (the “Term”), unless the Agreement is sooner terminated in accordance with the Terms and Conditions in the Original Agreement dated February 2, 2021; provided, however, that the City and the CONTRACTOR may mutually agree in writing to extend the Term of this Agreement for one (1) additional two-year period.

Payment
The City of Lancaster shall reimburse the CONTRACTOR for the performance of the work, in an amount not to exceed $125,000.00 per year, with a total of $375,000.00 for the length of the agreement.

Time for Commencement and Completion
CONTRACTOR shall commence performance of the work no later than three (3) calendar days following issuance of Notice to Proceed.

DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7

EXHIBIT A

SCOPE OF SERVICES

AND RATES SCHEDULE
Consultant will provide professional affordable housing finance and development advisory services on an as-needed basis in the potential areas of engagement listed below. Services will be billed on a time & materials (T&M) basis against this contract authorization. Scope of Services is illustrative and is to be prioritized based on Client needs and authorization. Consultant will manage work plan approach to each item in coordination with Client.

1. Manage RFP (Request for Proposal) processes and assist in selection of qualified real estate development firms or development-related contractors.
oHNR-1: On-going; services to be specifically covered by this contract include post-DDA required developer implementation support.

OHNR-3: Work with selected development team to negotiate ENA and DDA(s); finalize planning concepts for site; create federal, state, and local funding subsidy program strategy and schedule; identify other partners and stakeholder groups for participation in infrastructure improvements and community-based programs for the site and the surrounding neighborhoods, and other post- DDA required developer implementation support as necessary.

OScattered Site RFP: solicit proposals from potential developers seeking to develop smaller scale affordable home ownership units on sites throughout the City and negotiate DDA(s).

2. Develop scattered site strategy for marketing and development of LHA & City-owned properties, including:
oHNR-5 & HNR-7
oOther HNR scattered sites comprised located primarily in central and northeastern Lancaster OHerald Tract sites
OOther sites owned by City / Successor Agency

3. Conduct market, product & financial feasibility investigations, including outreach to prospective developers, management of RFP process in support of developer selection and negotiation of DDA(s), in support of sourcing alternative higher density products for HNR-6 & HNR-9.

4. Provide affordable housing finance and development advisory services in support of LHA- proposed affordable housing developments or affordable housing developments submitted by third-parties seeking financial or other assistance from City.

DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7

6. Keep City staff apprised of local, state and HUD regulatory changes, as well as new resource opportunities.

7. Assist with monitoring and compliance with state and HUD programs and regulations (I.e., PLHA 5- Year Plan, CalHome, Con Plan, etc.).

8. Prepare County, state and private funding applications, strategic plans, etc. as necessary.

9. Support and coordinate LHA site marketing and development efforts with on-going design and implementation of the proposed City Microgrid and Spot Muni efforts.

10. Provide other owners representative services in support of the needs of LHA efforts and site development.

Team MemberHourly Rates
Timothy Sales $225
Sue Sturmer $225
Allan D. Kotin $225
Faith Backus $185
DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7

STAFF REPORT
City of Lancaster
CC 7
8/08/2023
JC
Date:August 8, 2023
To: Mayor Parris and City Council Members
From:Larissa De La Cruz, Director – Community Development Chenin Dow, Assistant Director – Housing & Economic Development Christopher Aune, Manager – Housing
Subject:Amendment to Extend Professional Services Agreement with Affordable Housing Solutions & Development of Southern California, LLC for an Additional Three Years
Recommendations:

1. Approve the Amendment to the Professional Services Agreement with Affordable Housing Solutions & Development of Southern California, LLC (AHS) for an additional three (3) years.

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

Fiscal Impact:

Up to $125,000.00 annually for the three-year life of the contract, for a total not to exceed $375,000.00 in Housing funds.

Background:

In February 2021, the City entered into an agreement with consultant Affordable Housing Solutions (AHS) following a Request for Proposals (RFP) process to procure technical assistance services related to affordable housing projects, programs, and funding sources.

DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 1 3
3 7
Examples of services provides by AHS include assistance with drafting Requests for Proposals consistent with the requirements of various funding sources, providing technical services and assistance to draft and carry out Disposition & Development Agreements, monitoring emerging funding sources and Notice of Funding Availability (NOFA) schedules, monitoring and supporting the Zero Net Energy (ZNE) alliance project, and providing expert advice to support miscellaneous programs and projects.

Due to their extensive expertise, thorough familiarity with the City’s existing programs, and current status assisting with the execution of several pending long-term projects, staff proposes to extend the existing Professional Services Agreement for a period of three (3) years.

CD/CA/sm
Attachments:

Exhibit A – Amendment No.1
Exhibit B – Original Professional Services Agreement
DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7

ANY PROPRIETOR/PARTNER/EXECUTIVE
OFFICER/MEMBER EXCLUDED?

ADDL SUBRINSR

LTR INSD WVD

DATE (MM/DD/YYYY)
CONTACTPRODUCER NAME:

FAXPHONE
(A/C, No):(A/C, No, Ext):

E-MAIL
ADDRESS:

INSURER A :

INSURED INSURER B :

INSURER C :

INSURER D :

INSURER E :

INSURER F :

POLICY EFF POLICY EXPTYPE OF INSURANCE LIMITSPOLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY)

AUTOMOBILE LIABILITY

UMBRELLA LIAB

EXCESS LIAB

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Addit ional Remarks Schedule, may be attached if more space is required)

AUTHORIZED REPRESENTATIVE
EACH OCCURRENCE $

DAMAGE TO RENTED
CLAIMS-MADE OCCUR $PREMISES (Ea occurrence)
MED EXP (Any one person) $
PERSONAL & ADV INJURY $
GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $
PRO-POLICY LOC PRODUCTS - COMP/OP AGG $JECT
$OTHER:

COMBINED SINGLE LIMIT $(Ea accident)
ANY AUTO BODILY INJURY (Per person) $
OWNED SCHEDULED BODILY INJURY (Per accident) $AUTOS ONLY AUTOS HIRED NON-OWNED PROPERTY DAMAGE $(Per accident)AUTOS ONLY AUTOS ONLY $
EACH OCCURRENCE $OCCUR
CLAIMS-MADE AGGREGATE $
$DED RETENTION $

PER OTH-

STATUTE ER
E.L. EACH ACCIDENT $
E.L. DISEASE - EA EMPLOYEE $
If yes, describe under
E.L. DISEASE - POLICY LIMIT $DESCRIPTION OF OPERATIONS below INSURER(S) AFFORDING COVERAGE NAIC #

COMMERCIAL GENERAL LIABILITY
Y/N
N/A
(Mandatory in NH)

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

The ACORD name and logo are registered marks of ACORDACORD 25 (2016/03)

CERTIFICATE OF LIABILITY INSURANCE
Policy Number:

TIMOTHY SALES
275 ANITA DR.

PASADENA, CA 91105
Sandra Macdonald Agency
17141 Ventura Blvd., #202
Encino, CA 91316
(818)906-1042
Date Entered:
(818)906-0210
AFFORDABLE HOUSING SOLUTIONS & DEVELOPMENT OF S. CA LLC PSL0339610110 02/21/2023
A
PSL0339610110 02/21/2023 02/21/2024
2,000,000
1,000,000
1,000,000
1,000,000
1,000,000
5,000
A PSL0339610110 02/21/2023 02/21/2024
1,000,000

AFFORDABLE HOUSING FINANCIAL & DEVELOPMENT ADVISOR
“REQUEST FOR PROPOSALS - RFP”

ADDITIONAL COVERED PARTIES, BUT ONLY INSOFAR AS THE OPERATIONS UNDER THIS CONTRACT ARE CONCERNED

CITY OF LANCASTER
44933 FERN AVE

CERTIFICATE HOLDER AS ADDITIONAL INSURED
30 DAY NOTICE OF CANCELLATION AND 10 DAY FOR NON-PAYMENT OF PREMIUM 7/13/2023

THE CITY OF LANCASTER, ITS ELECTED OFFICIALS, OFFICERS, EMPLOYEES AND VOLUNTEERS ARE INCLUDED AS LANCASTER, CA 93834
1,000
B PREOFESSIONAL LIABILITY PSL0339610110 02/21/2023 02/21/2024 $1,000,000 $2,500

EACH CLAIM/OCCUR

DEDUCTIBLE

LLOYDS OF LONDON

ADDITIONAL INSURED ENDORSEMENT

ATTACHING TO
POLICY NUMBER:

PSL0339610110
THE INSURED: Affordable Housing Solutions and Development of Southern California LLC
WITH EFFECT FROM: 01 Aug 2023
It is understood and agreed that the following amendments are made to this Policy:

1. The following DEFINITION is added:
"Additional insured" means

THE LANCASTER HOUSING AUTHORITY C/O CITY OF LANCASTER
(Effective From: 21 Feb 2020)
44933 FERN AVE
LANCASTER, CA 93834
US

CITY OF PASADENA
100 GARFIELD AVENUE
PASADENA, CA 91101
US

2. Where an “Additional insureds” CONDITION exists in this Policy, additional insureds are included as a third party.

3. Where an “Additional insureds” CONDITION does not exist in this Policy, the following CONDITION is added:

Additional insureds
Additional insureds are indemnified under this Policy as if they were you, but only in respect of sums which they become legally obliged to pay (including liability for claimants' costs and expenses) as a result of any claim arising solely out of an act, error or omission committed by you or on your behalf, provided that had the claim been made against you, then you would be entitled to indemnity under this Policy.

Before we indemnify any additional insured, they must prove to us that the claim arose solely out of an act, error or omission committed by you or on your behalf and fully comply with CONDITION 1 as if they were you.

When this CONDITION applies, it will be primary and non- contributory to the additional insured's own insurance but only if you and the additional insured have entered into a contract that contains a provision requiring this.

Whilst additional insureds are indemnified under this Policy, any claim made by additional insureds against you will be treated by us as if they were a third party and not as a named insured.

4. The following CONDITION is added:

Notice of cancellation to additional insureds
If we give you notice of cancellation in accordance with the “Cancellation” CONDITION, we will endeavour to provide the same notice of cancellation to additional insureds; however, not doing so will not place any additional liability upon us.

SUBJECT OTHERWISE TO THE TERMS AND CONDITIONS OF THE
POLICY
Authorised Signatory
CFC Underwriting Ltd
DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7

275 Anita Drive | Pasadena, California | 91105-2168 13 July 2023 Risk Management City of Lancaster 44933 Fern Avenue Lancaster, California 93534 RE: Waiver of Workers Compensation Insurance Dear Sir or Madame: I, Timothy Sales, am sole proprietary of Affordable Housing Solutions & Development of Southern California, LLC (“AHS”) and swear under penalty of perjury that we are exempt from the State of California requirement to carry Worker’s Compensation insurance because we do not have any employees. We look forward to working with you! Please to contact me directly at [email protected] or 323-578-0550 if further information is required. Sincerely, Timothy Sales DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7 DocuSign Envelope ID: 002543CC-F07C-4C19-8299-70A1DED58FE7

STAFF REPORT
Lancaster Housing Authority
HA CC 2
7/8/2025
TN
Date: July 8, 2025
To: Chair Parris and Housing Authority Members
From: Patti Garibay, Director - Community Development
Nicole Jones, Senior Analyst - Community Development
Subject: Approve Loan Agreement between the Lancaster Housing Authority and Maison's Sierra Phase 2, LP, a California Limited Partnership
Recommendation:

1. Approve, in substantially the form provided, Loan Agreement between the Lancaster Housing Authority and Maison's Sierra Phase 2, LP, a California Limited Partnership in the amount of $3,509,756.67 to fund a portion of the costs associated with the construction of an 171 multifamily residential unit project (TTM 84221), consisting of 169 restricted rental units and 2 unrestricted manager's units. The project will have 132 one-bedroom units, and 39 two-bedroom units, serving tenants with rents affordable to households earning 30%-70% of area median income (AMI).

2. Approve Subordination of the Housing Authority Loan and Deed of Trust to construction loan and permanent loan in a total amount not to exceed $33,846,000.

3. Authorize the Executive Director, or his designee, to negotiate, finalize, and execute all documents necessary or appropriate to complete the transaction, in a form to be approved by the City Attorney.

G.C. Section 84308: No
Fiscal Impact:

The Lancaster Housing Authority will fund $2,319,361.98 (previously paid by Ravello Holdings, Inc. for the purchase of Authority-owned land for phase 1 of Maison’s Sierra) to Maison's Sierra Phase 2, LP and defer payment of the remaining $1,190,394.69 owed to the City for the land until repayment of the loan, for a total loan amount of $3,509,756.67. This Loan shall bear simple interest at the rate of 3.81% per year with an annual payment due in full in 21 years.

Background:

On March 14, 2023, the Housing Authority members approved an Exclusive Negotiating Agreement with Ravello Holdings, Inc. On May 9, 2023, the City Council and the 2 0
2 3
Lancaster Housing Authority authorized the execution of a Disposition and Development Agreement (DDA) with Ravello Holdings, Inc. (“Developer”) for the purchase and subsequent development of vacant parcels between Whit Carter Park and Avenue H and south of Avenue H- 8 between Sierra Highway and Cedar Avenue (3135-001-900-919, 3135-005-901, -904-914, 3135-006-900, -901, -903, -905-923, 3135-025-986, -987) (the “Site”). The 60-acre project has been broken down into three phases, consisting of a total of 450-499 affordable housing units (minus 1-2 manager units per phase).

On March 26, 2024, the City Council and the Lancaster Housing Authority approved a First Amendment to the DDA with the Developer and a Partial Assignment and Assumption Agreement in order to allow Developer to assign certain rights and responsibilities under the amended DDA to Maison’s Sierra Phase 1, LP. Lastly, the City Council also Approved a Subordination Agreement, in order to enable Developer to obtain construction financing.

On October 8, 2024, the Lancaster Housing Authority authorized the execution of a loan commitment letter with Ravello Holdings, Inc. stating that Maison’s Sierra envisioned three phases of development, with 196 units in the first phase; 171 units in the second phase; and 132 units in the final phase. All units (minus 1-2 units per phase which are reserved for manager units) are designed as affordable single-family detached homes for a combination of families and seniors with incomes at or below 80% of the area median income. The commitment letter also provided that the Housing Authority loan would be subordinate to the Developer’s construction loan and permanent loan.

Financing for Phase 1 has closed, and Ravello paid the Authority $2,319,361.98 for Authority land for this phase. The original appraised value was $2,466,680.83 and two credits were applied in Amendment No. 1 totaling $89,762.94, bringing the total value down to $2,376,917.89.

Construction on these units is underway. Ravello is now working to finalize financing for the next phase and has requested the financing of a portion of the Authority land costs (Phase 2a appraised value is $1,132,838.78), totaling $3,509,756.67, to bridge the gap between tax credit financing awarded and the total project cost. The APN’s for Phase 2a have been updated to 3135-001-912, -923, -925, -929, -927 (portion) and -920 (portion) from 3135-001-903-904, 907- 909 (“Phase 2A Site”).

The proposed deal structure would provide financing of the land costs in the form of a loan at an interest rate of 3.81%, equal to the 10-year United States Treasury yield. In order to secure the majority of the funding for the project, repayment of the Authority loan would be subordinate to the Developer’s construction loan and permanent loan. The proposed structure is a residual receipts format, with the primary loan and operational expenses funded from rents, while the Authority interest is repaid through 50% of any funds remaining after these financial obligations are satisfied. Any unpaid interest would compound annually, with a balloon payment for any outstanding interest as well as the principal due at the end of the 21-year term. This loan agreement will fund a portion of the costs associated with the construction of 171 multifamily residential units as part of Maison’s Sierra Phase 2, LP (TTM 84221), with the rental of all such units (except two reserved for manager units) restricted to tenants with rents affordable to households earning 30%-70% of area median income (AMI) and intended (but not required) for senior citizens.

The Authority funds are expressly non-forgivable, with the Developer prohibited from requesting a reduction or waiver of the balloon payment in the future. Should such a request be made, the entirety of the outstanding amount will become immediately due and payable. The funds would also become due and payable upon the sale of the property and/or the refinance of 2 0
2 3
the senior permanent loan.

Attachment:

Sierra Phase 2 Loan Agreement
SYCR Draft: 20250703

LOAN AGREEMENT
by and between

LANCASTER HOUSING AUTHORITY
and
MAISON’S SIERRA PHASE 2, LP
i

TABLE OF CONTENTS

1. Incorporation of Recitals....................................................................................................1

2. Use of Defined Terms; Definitions.....................................................................................1

3. Representations and Warranties of Borrower......................................................................5

4. Survival of Representations and Warranties........................................................................6

5. Agreement to Borrow and Lend; Use of Proceeds...............................................................6

6. Loan Documents................................................................................................................6

7. Interest Rate.......................................................................................................................7

8. Term of the Loan................................................................................................................7

9. Prepayment........................................................................................................................7

10. Conditions Precedent to Closing.........................................................................................7

11. Borrower’s Covenants........................................................................................................8

12. Financing Acquisition of Property and Construction of Project...........................................9

12.1 Lender Approval of Financing Plan........................................................................9

12.2 Financing Sources..................................................................................................9

12.3 Required Submissions............................................................................................9

12.4 Holder Performance of Development of Project....................................................10

12.5 Notice of Default to Mortgagee or Deed of Trust Holders; Right to Cure..............10

12.6 Failure of Holder to Complete Development........................................................11

12.7 Right of Lender to Cure Mortgage or Deed of Trust Default.................................11

13. Borrower’s Construction of the Project.............................................................................12

13.1 Cost of Construction; Use of Hydrogen................................................................12

13.2 Commencement of Construction...........................................................................12

13.3 Completion of Construction..................................................................................12

13.4 City and Other Governmental Agency Permits.....................................................12

13.5 Insurance..............................................................................................................12

13.6 Indemnity.............................................................................................................13

13.7 Compliance With Laws........................................................................................13

13.8 Changes in Laws..................................................................................................13

13.9 Taxes and Assessments........................................................................................13

13.10 Liens and Stop Notices.........................................................................................13

14. Project Operating Requirements.......................................................................................14

14.1 Senior Citizen Units.............................................................................................14

14.2 Income Level of Tenants......................................................................................14 ii

14.3 Income Verification..............................................................................................14

14.4 Annual Reports....................................................................................................15

14.5 Nondiscrimination................................................................................................15

14.6 Effect of Violation of the Terms and Provisions of this Agreement After Completion of Construction......................................................15

14.7 Maintenance of the Property.................................................................................15

14.8 Long Term Management of the Property..............................................................16

15. Events of Default.............................................................................................................16

16. Lender Remedies Upon Event of Default..........................................................................18

17. Non-Waiver of Remedies.................................................................................................18

18. General Provisions...........................................................................................................18

18.1 Captions...............................................................................................................18

18.2 Merger.................................................................................................................18

18.3 Notices.................................................................................................................18

18.4 Modification, Waiver...........................................................................................19

18.5 Governing Law....................................................................................................19

18.6 Acquiescence Not to Constitute Waiver of Lender’s Requirements.......................19

18.7 Disclaimers by Lender..........................................................................................19

18.8 Right of Lender to Make Advances to Cure Defaults............................................20

18.9 Definitions Include Amendments.........................................................................20

18.10 Time is of the Essence..........................................................................................20

18.11 Execution in Counterparts....................................................................................20

18.12 Waiver of Consequential Damages.......................................................................20

18.13 Claims Against Lender.........................................................................................20

18.14 Severability..........................................................................................................21 Exhibit “A” Property Legal Description
Exhibit “B” Site Map
Exhibit “C” Scope of Development
Exhibit “D” Schedule of Performance
Exhibit “E” Promissory Note
Exhibit “F” Deed of Trust
Exhibit “G” Form of Residual Receipts Report
1 LOAN AGREEMENT
THIS LOAN AGREEMENT (“Agreement”) is made as of [____], 2025 (“Effective Date”), by and between MAISON’S SIERRA PHASE 2, LP, a California limited partnership (“Borrower”), and LANCASTER HOUSING AUTHORITY, a public body, corporate and politic (“Lender”) (Borrower and Lender are each a “Party” and collectively the “Parties”).

R E C I T A L S
A. By this Agreement and in consideration of Borrower’s performance of the covenants set forth in this Agreement and otherwise subject to the terms and conditions herein, Lender desires to provide to the Borrower a loan to fund a portion of the costs associated with the construction of an at least 170 multifamily residential unit project, with the rental of all such units (excluding two (2) management units) restricted to lower income households and intended (but shall not be required) for senior citizens.

B. Lender and Borrower agree that this Loan is and shall be subject and subordinate in right of payment and lien priority to the Senior Loan (as defined in Section 18.15) pursuant to this Agreement and the Subordination Agreement (as defined herein).

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

1. Incorporation of Recitals. The foregoing Recitals are incorporated herein and constitute a substantive part of this Agreement.

2. Use of Defined Terms; Definitions. Defined terms may be used in the singular or the plural. When used in the singular preceded by “a,” “an,” or “any,” such term shall be taken to indicate one or more members of the relevant class. When used in the plural, such term shall be taken to indicate all members of the relevant class. Capitalized terms used, but not otherwise defined, herein shall have the respective meanings set forth in the Note defined below. The following terms as used herein shall have the following meanings:

2.1 “Agreement” means this Agreement, as originally executed, or as may be hereafter supplemented or amended from time-to-time in writing.

2.2 “Annual Project Revenue” shall mean all gross income and all revenues of any kind from the Project in a calendar year, including without limitation, Rent, late charges, vending machine income, and any other revenues of whatever kind or nature from the Project, except that interest on security deposits and required reserves shall not be considered Annual Project Revenue.

2.3 “CC&Rs” means that certain Residential Declaration of Conditions, Covenants and Restrictions and Regulatory Agreement, dated as of [___], 2025, made by [Ravello Holdings, Inc.] and recorded against the Property. 2 2.4 “Closing” means the disbursement of Loan proceeds, which shall occur on the date hereof, all of the conditions set forth in Section 10 of this Agreement having been satisfied or waived.

2.5 “Closing Date” means the date of the Closing.

2.6 “Construction Lender” means Merchants Bank of Indiana, an Indiana chartered bank, and its successors and assigns.

2.7 “Construction Loan” means that certain loan in a maximum principal amount of $[33,846,000.00] 1 made by Construction Lender to Borrower pursuant to the Construction Loan Documents.

2.8 “Construction Loan Agreement” means that certain [Construction Loan Agreement], dated the date hereof, by and between Construction Lender, as lender, and Borrower, as Borrower, as amended, modified or supplemented from time to time.

2.9 “Construction Loan Documents” means the Construction Loan Agreement and each other agreement, instrument or document given by Borrower to Construction Lender from time to time to evidence the Construction Loan.

2.10 “Debt Service” means regularly scheduled payments of principal and interest made in a calendar year pursuant to the Senior Loan, but excluding payments made pursuant to the Promissory Note.

2.11 “Deed of Trust” means the deed of trust described in Section 6 of this Agreement, as originally executed or as may be hereafter supplemented or amended from time- to-time in writing.

2.12 “Default” means any event which, if it were to continue uncured, would, with notice or lapse of time or both, constitute an Event of Default (as such term is defined in Section 15 of this Agreement).

2.13 “Event of Default” is defined in Section 15.

2.14 “Governmental Authority” means any federal, state, county or municipal government, or political subdivision thereof, any governmental or quasi- governmental agency, authority, board, bureau, commission, department, instrumentality, or public body, or any court or administrative tribunal.

2.15 “Housing Units” means the individual apartment units within the Project to be developed and operated by Borrower.

2.16 “Improvements” means the at least 170 multifamily residential unit project, along with all appurtenant on-site and off-site improvements and all fixtures and equipment to be constructed or installed on or about the Property. 1 Note: Amount to be adjusted upon finalization.
3 2.17 “Include(s)” or “including” means including but not limited to.

2.18 “Investor” means MCI Maison’s Sierra II, L.P., an Indiana limited partnership, its successors and or assigns.

2.19 “Knowledge” means, when used to modify a representation or warranty, actual knowledge or such knowledge as a reasonable person under the circumstances should have after diligent inquiry and investigation.

2.20 “Laws” means, collectively, all federal, state and local laws, statutes, codes, ordinances, orders, rules and regulations, including judicial opinions or precedential authority in the applicable jurisdiction.

2.21 “Loan” means the Three Million Five Hundred Nine Thousand, Seven Hundred Fifty-Six and 67/100 Dollar ($3,509,756.67) loan made by Lender to Borrower pursuant to this Agreement.

2.22 “Loan Documents” means this Agreement, the documents and instruments listed in Section 6 of this Agreement, any documents amending, restating, replacing, extending, or otherwise modifying this Agreement and/or the documents listed in Section 6 of this Agreement, and all the documents given to Borrower from time-to-time to evidence the Loan.

2.23 “Loan Maturity Date” means [closing date + 21 years ].

2.24 “Operating Expenses” shall mean actual, reasonable and customary (for comparable high quality rental housing developments in Los Angeles County) costs, fees and expenses directly incurred, paid, and attributable to the operation, maintenance and management of the Project in a calendar year, including: painting, cleaning, repairs, alterations, landscaping, utilities, refuse removal, certificates, permits and licenses, sewer charges, real and personal property taxes, assessments, insurance, security, advertising and promotion, janitorial services, cleaning and building supplies, purchase, repair, servicing and installation of appliances, equipment, fixtures and furnishings which are not paid from the capital replacement reserve, fees and expenses of property management, fees and expenses of accountants, attorneys and other professionals, the cost of social services, repayment of any completion or operating loans made to Borrower, its successors or assigns, and other actual, reasonable and customary operating costs and capital costs which are directly incurred and paid by Borrower, but which are not paid from the operating reserve or other reserve accounts.

Operating Expenses shall not in any event include expenses not related to the operation of the Project, including without limitation, depreciation, amortization, and accrued Debt Service.

Operating Expenses shall not include any fees of any type, kind or nature paid to Borrower, its subsidiaries, or its parent companies other than fees that are capitalized into the construction budget (including general contracting fees and non-deferred developer fees, which non- deferred developer fees shall in no event be in excess of $2,655,050). For avoidance of doubt, fees paid to Borrower or Ravello Holdings, Inc., their subsidiaries, or their parent companies, shall not be included in Operating Expenses and shall be paid exclusively out of Borrower’s share of Residual Receipts.
4 2.25 “Partnership Agreement” is defined in the definition of Permitted Transfer.

2.26 “Permanent Lender” means Fannie Mae, a corporation organized and existing under the Federal National Mortgage Association Charter Act, 12 U.S.C. § 1716 et seq., as amended.

2.27 “Permanent Loan” means that certain loan in a maximum principal amount of $23,620,000.00 made by Permanent Lender to Borrower pursuant to the Permanent Loan Documents, as contemplated by that certain Letter of Engagement for a Forward Mortgage Loan under the Federal National Mortgage Association’s Multifamily Affordable Housing Mortgage-Bond Credit Enhancement Program.

2.28 “Permanent Loan Documents” means, collectively, the agreements, instruments and other documents given by Borrower to Permanent Lender from time to time to evidence the Permanent Loan.

2.29 “Permitted Exceptions” means those exceptions identified on Exhibit H hereto.

2.30 3.

2.31 “Promissory Note” means the promissory note described in Section 6 of this Agreement, as originally executed or as may be hereafter supplemented or amended from time-to-time in writing.

2.32 “Property” means the real property described on Exhibit “A” hereto.

2.33 “Rent” shall mean the total of monthly payments by the tenants of a Housing Unit for use and occupancy for the Housing Unit and facilities associated therewith, including a reasonable allowance for utilities for an adequate level of service, as defined in section 6918 of title 25 of the California Code of Regulations.

2.34 “Reserve Deposits” shall mean any payments to an operating reserve account or capital replacement reserve account that have been approved by Senior Lender.

2.35 “Residual Receipts” shall mean Annual Project Revenue less the sum of (i) Operating Expenses, (ii) Debt Service, and (iii) Reserve Deposits; provided, however, that if such calculation results in a negative number, Residual Receipts shall be zero for that year.

2.36 “Schedule of Performance” means that certain Schedule of Performance attached hereto as Exhibit “D”, which schedule sets forth the date by which Borrower shall commence and substantially complete (subject to events of force majeure) construction of the Project, as the same may be amended, modified or supplemented from time to time in accordance with the terms of the Senior Loan and (subject to the last paragraph of Section 13) by written agreement of the Parties.
3 Note: To be replaced with the specifics. Construction Loan Agreement does not provide for permitted transfers. 5 2.37 “Scope of Development” means that certain Scope of Development attached hereto as Exhibit “C”, as the same may be amended, modified or supplemented from time to time in accordance with the terms of the Senior Loan and (subject to the last paragraph of Section 13) by written agreement of the Parties.

2.38 “Senior Lender” means the Construction Lender or the Permanent Lender, as the context may require.

2.39 “Senior Loan” means the Construction Loan or the Permanent Loan, as the context may require.

2.40 “Senior Loan Documents” means the Construction Loan Documents or the Permanent Loan Documents, as the context may require.

2.41 “Subordination Agreement” means that certain Subordination Agreement, dated the date hereof, by and between Construction Lender, Lender and Borrower, as amended, modified, supplemented or replaced from time to time.

2.42 “Transfer” shall have the meaning ascribed to such term in the Senior Loan Agreement.

3. Representations and Warranties of Borrower. To induce Lender to execute this Agreement and perform the obligations of Lender hereunder, Borrower hereby represents and warrants to Lender, as of the date hereof, that:

3.1 No litigation or proceedings are pending, or to Borrower’ knowledge are threatened in writing, against Borrower or any Member: (i) which might affect the ability of Borrower to perform its obligations pursuant to and as contemplated by the terms and provisions of this Agreement and the other Loan Documents in any material respect; or (ii) which could materially affect the operations or financial condition of Borrower.

3.2 The execution, delivery and performance of this Agreement and the other Loan Documents have not constituted (and will not, upon the giving of notice or lapse of time or both, constitute) a breach or default under any other agreement to which Borrower is a party or may be bound or affected.

3.3 This Agreement and the other Loan Documents constitute legal, valid and binding obligations of Borrower, and are enforceable against Borrower and the Property in accordance with their respective terms, subject to the effect of bankruptcy, insolvency, reorganization, moratorium or similar laws affecting enforcement of creditors’ rights generally and limitations imposed by general principles of equity.

3.4 No brokerage fees or commissions are payable by or to any person in connection with this Agreement or the Loan to be disbursed hereunder.

3.5 No Default or Event of Default has occurred and is continuing.

3.6 No event has occurred and no circumstance exists as a result of which the information concerning Borrower or any Member that has been provided to Lender in 6 connection herewith would include an untrue statement of a material fact or omit to state any material fact or any fact necessary to make the statements contained therein, in the light of the circumstances under which they were made, not misleading in any material respect.

3.7 Borrower shall use the Loan proceeds for the purposes described in Section 12 hereof, and for no other purpose.

4. Survival of Representations and Warranties. Borrower agrees that the representations and warranties set forth in Section 3 of this Agreement and elsewhere in this Agreement will be true at the Closing Date and shall survive the making of the Loan.

5. Agreement to Borrow and Lend; Use of Proceeds. Subject to all of the terms, covenants and conditions which are set forth herein and upon satisfaction of the Conditions Precedent set forth in Section 10, Lender hereby agrees to (a) fund to Borrower the sum of Two Million Three Hundred Nineteen Thousand Three Hundred Sixty One and 98/100 Dollars ($2,319,361.98), and (b) defer receipt of One Million One Hundred Ninety Thousand Three Hundred Ninety Four and 67/100 Dollars ($1,190,394.69) until repayment of the Loan pursuant to this Agreement, for a total loan amount of Three Million Five Hundred Nine Thousand Seven Hundred Fifty-Six and 67/100 Dollars ($3,509,756.67) (the “Loan”).

Borrower’s obligation to repay the Loan shall be evidenced by the Promissory Note and secured by the Deed of Trust encumbering the Property and Improvements. The proceeds of the Loan shall be disbursed directly to Borrower or to vendors, contractors or sub-contractors designated by Borrower upon request. Said proceeds shall be used by Borrower for the purposes described herein, and for no other purpose. Except in the case of a Permitted Transfers or any other transfer approved by Lender, all interest and principal of the Loan is due and payable upon transfer of title or sale of the Property.

6. Loan Documents. In consideration of Lender’s entry into this Agreement and Lender’s agreement to make the Loan, Borrower agrees that it will, in sufficient time for review by Lender and its counsel prior to the Closing Date, execute and deliver or cause to be executed and delivered to Lender the following documents and instruments in form and substance acceptable to Lender:

6.1 A promissory note from Borrower payable to the order of Lender in the original principal amount of Three Million Five Hundred Nine Thousand Seven Hundred Fifty-Six and 67/100 Dollars ($3,509,756.67)in substantially the form attached hereto as Exhibit “E” (“Promissory Note”);

6.2 A deed of trust encumbering the Property and Improvements that secures Borrower’s obligations under this Agreement and the Promissory Note in substantially the form attached hereto as Exhibit “F” (“Deed of Trust”).

6.3 Such other papers and documents as may be required by this Agreement or as Lender may reasonably require.
7 3. Interest Rate. The Loan will bear interest for the period and at the rate set forth in the Promissory Note.

4. Term of the Loan. The unpaid principal balance, all accrued and unpaid interest and all other sums due and payable under the Promissory Note or other Loan Documents, if not sooner paid, shall be paid in full on the Loan Maturity Date. Borrower covenants that, if the Permanent Loan is repaid in full prior to the Loan Maturity Date stated herein, then Borrower shall repay the Loan in full on the date on which the Permanent Loan is repaid.

5. Prepayment. Borrower shall have the right to make prepayments of the Loan in whole or in part, without payment of any premium or penalty, at any time prior to the Loan Maturity Date.

6. Conditions Precedent to Closing. Borrower agrees that Borrower will perform and satisfy all of the following conditions precedent before Closing, and Borrower agrees that Lender’s obligation to disburse the proceeds of the Loan is conditioned upon the following:

6.1 Execution and Delivery of Documents. Borrower shall have executed and delivered to Lender the Promissory Note, Deed of Trust, and any other documents and instruments in connection with the Loan as may be reasonably required to be executed and delivered by Borrower to evidence the intentions of the Parties.

6.2 Recordation. The escrow holder selected by Borrower and reasonable accepted by Lender is prepared to record the Deed of Trust against the Property in the proper recording order pursuant to escrow instructions approved by Lender, at the time of the first disbursement of any of the proceeds of Loan.

6.3 Title to Land. Lender shall be satisfied that upon the disbursement of the Loan, Borrower will have good and marketable fee title to the Property, and there will exist thereon or with respect thereto no mortgage, lien, pledge or other encumbrance of any character whatsoever, other than liens for current real property taxes and assessments not yet due and payable, the lien of the Senior Loan to which the Loan shall be subject and subordinate, the Permitted Exceptions, and any other matters specifically approved in writing by Lender.

6.4 No Default. There shall exist no condition, event or act which would constitute an Event of Default (as hereinafter defined) hereunder or which, with the giving of notice or the passage of time, or both, would constitute an Event of Default.

6.5 Representations and Warranties. All representations and warranties of Borrower herein contained shall be true and correct as of the Closing in all material respects.

Borrower shall have furnished to Lender the following in sufficient time for review by Lender and its counsel prior to the Closing Date, all of which shall be in form and substance satisfactory to Lender and its counsel:
(a) Evidence satisfactory to Lender that the Loan is authorized and that the individuals executing this Agreement and the other Loan Documents on behalf of 8 Borrower have been duly authorized by all appropriate action to execute and deliver this Agreement and the Loan Documents on behalf of Borrower. (b) A copy of the organizational documents for Borrower.

10.6 Borrower shall have complied with all other applicable requirements of this Agreement.

11. Borrower’s Covenants. Borrower further covenants and agrees as follows:

11.1 Lender’s Attorney’s Fees and Expenses. If at any time hereafter prior to repayment of the Loan in full, Lender employs counsel for advice or other representation (whether or not any suit has been or shall be filed and whether or not other legal proceedings have been or shall be instituted and, if such suit is filed or legal proceedings instituted, through all administrative, trial, and appellate levels) with respect to the Loan, this Agreement or any of the Loan Documents, or to enforce any rights of Lender, or any obligations of Borrower, or any other person, firm or corporation which may be obligated to Lender by virtue of this Agreement or any other agreement, instrument or document heretofore or hereafter delivered to Lender by or for the benefit of Borrower, or to negotiate any proposed restructuring of the Loan, then, in any such event, all of the attorney’s reasonable fees and expenses arising from such services, and all reasonable expenses, costs and charges reasonably incurred and relating thereto, shall be paid by Borrower within 10 business days of written demand by Lender and if Borrower fails to pay such fees, costs and expenses, payment thereof by Lender shall be deemed to constitute additional indebtedness evidenced by the Note and the other Loan Documents (even if the total amount of indebtedness would exceed the face amount of the Note).

11.2 Documents of Further Assurance. Borrower shall, from time-to-time, upon Lender’s request, execute, deliver, record and furnish, or cause to be executed, delivered, recorded and furnished, such documents as Lender may reasonably deem necessary or desirable to: (a) correct any errors of a typographical nature or inconsistencies which may be contained in any of the Loan Documents; and (b) consummate fully the transaction contemplated under this Agreement, provided the same do not materially diminish the rights or materially increase the obligations of Borrower under the Loan Documents.

11.3 Indemnification. Borrower shall indemnify, defend and hold Lender, and its elected officials, officers, directors, employees, and agents harmless from and against all actual third-party claims for injury, damage, loss, costs (including attorney’s and expert witness fees and costs) and liability of any and every kind to any persons or property by reason of: (i) any action or negligent omission by, or matter which is the obligation of, Borrower hereunder or in connection herewith, and (ii) any breach of any representation or warranty or failure to fulfill any obligations of Borrower under this Agreement or any other Loan Document (except to the extent any such claim is caused by the negligence or misconduct of Lender or any of its elected officials, officers, directors, employees or agents).

11.4 Compliance with Laws. Borrower shall promptly comply with all applicable Laws of any Governmental Authority having jurisdiction over Borrower. 9 11.5 Organizational Documents. Without the prior written consent of Lender (which consent shall not be unreasonably withheld, conditioned or delayed), Borrower shall not permit or suffer any amendment or modification of Borrower’s organizational documents (except to the extent any such amendments or modifications (y) do not affect adversely the rights of Lender under the Loan Documents, or (z) are entered into to effectuate a Permitted Transfer).

11.6 Lost Note. Borrower shall, if the Note is mutilated, destroyed, lost, or stolen, promptly deliver to Lender, in substitution therefor, a new promissory note containing the same terms and conditions as the Note with a notation thereon of the unpaid principal and accrued and unpaid interest (and in any such case Lender shall execute and deliver to Borrower with a customary lost note affidavit and indemnity in form and substance satisfactory to Borrower).

12. Financing Acquisition of Property and Construction of Project.

12.1 Lender Approval of Financing Plan. On or prior to the date hereof Borrower submitted to Lender and Lender approved the Financing Plan, which plan contains:
(i) an acquisition and development budget for the Project, (ii) a sources and uses analysis for the period of the development of the Project, including an analysis of the additional subsidized financing which is necessary from other public bodies, (iii) a sources and uses analysis from the date of the origination of the permanent loan, if any, including an analysis of the additional subsidized financing which is necessary from other public entities, (iv) an operating budget for the Project, including without limitation an operating reserve fund and capital replacement reserve fund and (v) a description of all material underlying assumptions for each of the above in reasonable detail. Borrower shall also submit to Lender any revisions to the Financing Plan, which revisions (if and only if the same would have an adverse impact on Lender) shall be subject to Lender’s approval (which approval shall not be unreasonably withheld, conditioned or delayed).

12.2 Financing Sources. Upon completion of construction of the Project, Borrower shall perform a final reconciliation of the total sources of permanent financing and the costs of development of the Project (the “Reconciliation”), which Reconciliation shall be audited by Borrower’s accountants. If the Reconciliation determines that the total sources of permanent financing for the Project (including long-term permanent debt and equity) exceed the total cost of acquisition of the Property and development of the Project, the amount of any such excess shall be applied to the outstanding principal balance of the Loan to the extent the same is available after payment of any amounts due under the Senior Loan.

12.3 Required Submissions. On or prior to the date hereof Borrower submitted to Lender and Lender approved each of the following documents as evidence of financing:
(a) A copy of all loan commitment(s) obtained by Borrower from one or more financial institutions for the mortgage loan or loans for construction and permanent financing for the Project, subject to such lenders’ reasonable, customary and normal conditions and terms.
10 (b) A copy of applications to and financing approvals with respect to any affordable housing subsidy program(s) from which Borrower has applied to obtain financial subsidies.
(c) Such other documentation reasonably requested by Lender as evidence of other sources of capital, all of which together are sufficient to demonstrate that Borrower has adequate funds, together with the proceeds of any other financing to acquire the Property and develop the Project.

12.4 Holder Performance of Development of Project. The holder of any mortgage or deed of trust authorized by this Agreement, including without limitation the Senior Lender, shall not be obligated by the provisions of this Agreement to perform the development of the Project or any portion thereof, or to guarantee such construction or completion; nor shall any covenant or any other provision in this Agreement be construed so to obligate such holder.

12.5 Notice of Default to Mortgagee or Deed of Trust Holders; Right to Cure. With respect to any mortgage or deed of trust granted by Borrower as provided herein, whenever Lender may deliver any notice or demand to Borrower with respect to any breach or default by the Borrower hereunder or under any other Loan Document, Lender shall at the same time deliver to the Investor of the Borrower and to each holder of record of any mortgage or deed of trust authorized by this Agreement, including without limitation the Senior Lender, a copy of such notice or demand. Each such holder and the Investor of the Borrower shall (insofar as the rights granted by Lender are concerned) have the right, but not the obligation, at its option, within thirty (30) days after the receipt of the notice, to cure or remedy or commence to cure or remedy and thereafter to pursue with due diligence the cure or remedy of any such default and to add the cost thereof to the mortgage debt and the lien of its mortgage; provided, however, that, in the case of a non-monetary Event of Default that is not reasonably susceptible to cure within such 30-day period, such holder and/or Investor shall have such additional time as is reasonably needed to effectuate a cure of such Event of Default, provided such holder and/or Investor has promptly commenced efforts to cure such Event of Default and thereafter pursue such cure with diligence. Nothing contained in this Agreement shall be deemed to permit or authorize such holder to undertake or continue the construction or completion of the development of the Project, or any portion thereof (beyond the extent necessary to conserve or protect the improvements or construction already made) without first having expressly assumed Borrower's obligations to Lender by written agreement reasonably satisfactory to Lender. The holder, in that event, must agree to complete, or cause to be completed by a party which is reasonably acceptable to the Lender, in the manner provided in this Agreement, the improvements to which the lien or title of such holder relates. It is understood that a holder (or assignee approved by the Lender) shall be deemed to have satisfied the thirty (30) day time limit set forth above for commencing to cure or remedy a Borrower default which requires title and/or possession of the Project (or portion thereof), if and to the extent any such holder (or assignee approved by the Lender) has within such thirty (30) day period commenced proceedings to obtain title and/or possession and thereafter the holder diligently pursues such proceedings to completion and cures or remedies the default.

12.6 [Intentionally omitted].

12.7 [Intentionally omitted].
11 7. Borrower’s Construction of the Project. Borrower agrees to construct the Improvements on the Property with commercially reasonable diligence and care in accordance with this Section 13, the Scope of Development, the plans and specifications, applicable laws, and regulations.

7.1 Cost of Construction. Except for the proceeds of the Loan, the cost of the construction of the Project and any additional costs of completing the construction of the Project shall be the sole responsibility of Borrower. Borrower shall collaborate with Lender, City of Lancaster, and the First Public Hydrogen Authority (collectively, “City Partners”) to construct the Project as a hydrogen-powered community and continue partnerships with the City Partners, including the purchase of hydrogen. Borrower shall collaborate in good faith with the City Partners to establish a first-of-its-kind hydrogen community, to the extent it is economically and functionally viable and does not cause undue delays to the Project, and is approved by Borrower’s tax credit equity partner and lender. Notwithstanding anything herein to the contrary, once the Scope of Development, and the plans and specifications for the Project, have been approved by Lender, Borrower shall be deemed to have satisfied its obligations regarding the potential construction of the Project as a hydrogen-powered community, including without limitation under this Section 13.1.

7.2 Commencement of Construction. Borrower hereby covenants and agrees to use commercially reasonable efforts to ensure (subject to events of force majeure) the commencement of construction of the Improvements by the date specified in the Schedule of Performance.

7.3 Completion of Construction. Borrower hereby covenants and shall cause to be diligently prosecuted to completion, the construction of the Improvements and to use commercially reasonable efforts to cause (subject to events of force majeure) the completion of such construction work (it being agreed that the construction work shall be deemed to be complete when certificates of occupancy have been issued permitting occupancy of all of the Housing Units).

7.4 City and Other Governmental Agency Permits. Before commencement of the construction of the Improvements, Borrower shall, at its own expense, secure or cause to be secured any and all permits which may be required by any other governmental agency with jurisdiction over such construction, including, without limitation, building permits. It is understood that Borrower is obligated to submit to the City final drawings with final corrections to obtain such permits.

7.5 Insurance. Upon completion of construction of the Improvement, Borrower shall maintain, until Borrower has repaid the Loan in full (including any accrued interest), an all-risk property insurance policy insuring the multifamily housing project in an amount equal to the full replacement value of the real property, together with flood insurance in conformance with the Flood Disaster Protection Act, for the portion of the Property located in a flood zone. The policy shall contain a statement of obligation on behalf of the carrier to notify Lender of any material change, cancellation or termination of coverage at least thirty (30) days in advance of the effective date of such material change, cancellation or termination.

Borrower shall transmit a copy of the certificate of insurance to Lender within thirty (30) days of the Effective Date of this Agreement, and Borrower shall annually transmit to Lender a copy of the certificate of insurance, signed by an authorized agent of the insurance carrier setting 12 forth the general provisions of coverage. The copy of the certificate of insurance shall be transmitted to Lender at the address set forth in this Agreement. Any certificate of insurance must be in a form, content, and with companies customary for a multifamily housing project in the nature of the Project and otherwise reasonably acceptable to Lender. Notwithstanding anything herein to the contrary, provided Borrower is named as a loss payee under all property damage and liability insurance policies maintained by Borrower with respect to the Property.

13.6 Indemnity. Borrower shall, at its expense, defend, indemnify, and hold harmless the Lender and the City and their respective officials, officers, agents, employees and representatives from any and all actual losses, liabilities, claims, lawsuits, causes of action, judgments, settlements, court costs, attorneys' fees, and other legal expenses, costs of evidence of title, costs of evidence of value, and other damages of whatsoever nature arising out of any third-party claim arising out of, in connection with, or relating in any manner to any act or omission of Borrower or its agents, employees, contractors or subcontractors of any tier, or employees thereof, in connection with or arising from Borrower’s performance or nonperformance of its obligations under this Agreement, or the construction of the Improvements on the Property, except for any and all losses, liabilities, claims, lawsuits, causes of action, judgments, settlements, court costs, attorneys' fees, and other legal expenses, costs of evidence of title, costs of evidence of value and/or other damages of whatsoever nature to the extent caused by the negligence or misconduct of the Lender, City or any of their respective officials, officers, agents, employees, contractors or representatives.

13.7 Compliance With Laws. Borrower shall carry out the design, construction and operation of the Improvements in conformity with all applicable laws, including all applicable state labor standards, City zoning and development standards, building, plumbing, mechanical and electrical codes, and all other provisions of the City Municipal Code, the provisions of Labor Code Section 1720 et seq. relating to prevailing wages as to which Lender makes no representations and all applicable laws and regulations pertaining to disabled and handicapped access requirements, including without limitation (to the extent applicable) the Americans With Disabilities Act, 42 U.S.C. Section 12101, et seq., Government Code Section 4450, et seq. Government Code Section 11135, et seq., the Unruh Civil Rights Act, Civil Code Section 51, et seq., and the Fair Housing Act, 42 U.S.C. Section 3601, et seq.

13.8 Changes in Laws. Notwithstanding anything herein to the contrary, Lender shall not be responsible for any costs imposed upon Borrower pursuant to any changes in governmental requirements made after the date of this Agreement which impose additional requirements upon Borrower solely as a result of Borrower’s advance of the proceeds of the Loan to Borrower or Lender’s imposition of affordable housing requirements, including, without limitation, any requirement for the payment of prevailing wages with respect to the construction of the Improvements and off-site improvements.

13.9 Taxes and Assessments. Borrower shall pay prior to delinquency all ad valorem real estate taxes and assessments on the Property, subject to the Borrower’s right to contest in good faith any such taxes. Borrower shall remove or have removed any levy or attachment made on any of the Property or any part thereof, or assure the satisfaction thereof within a reasonable time upon Borrower acquiring knowledge thereof.

13.10 Liens and Stop Notices. Borrower shall not allow to be placed on the Property or any part thereof any lien or stop notice other than the lien(s) in connection with the 13 construction and permanent financing of the Project. If a claim of a lien or stop notice is given or recorded affecting the Improvements, Borrower shall within thirty (30) days of the earlier of Lender’s written demand and Borrower acquiring knowledge thereof:
(a) pay and discharge the same; or
(b) effect the release thereof by arranging a surety bond in sufficient form and amount, or otherwise, and in any such case providing Lender with reasonable evidence of such release; or
(c) provide to Lender such alternate assurance which Lender deems, in its reasonable discretion, to be satisfactory for the payment of such lien or bonded stop notice and for the full and continuous protection of Lender from the effect of such lien or bonded stop notice.

Notwithstanding anything to the contrary herein, any amendment or change to the Schedule of Performance, the Scope of Development, the plans and specifications for the construction of the Project, the acquisition and development budget for the Project or the operating budget for the Project shall be deemed to have been approved by Lender if (i) the same required the approval of the Senior Lender and the Senior Lender has approved the same, or (ii) the approval of the Senior Lender is not required under the Senior Loan Documents; provided, however, that, notwithstanding the foregoing, Lender’s written consent shall be required for any amendment or change to the Schedule of Performance, the Scope of Development, the plans and specifications for the construction of the Project, or (other than an increase of the budget that is or will be funded by Borrower or other source of funding that is subordinate to the Loan) the acquisition and development budget for the Project arising on or after the Closing Date that would have a material effect on (v) the date by which construction of the Improvements will be substantially complete, (w) the number of Housing Units, the Housing Unit mix and/or the type and/or size of the Housing Units to be constructed, (x) the business or operations of Borrower taken as a whole, (y) the ability of Borrower to pay and perform its obligations under the Loan Documents, or (z) the validity or enforceability of the Loan Documents. To the extent the approval of Lender is required hereunder, Lender hereby expressly delegates to its Executive Director the authority to approve any such matter.

14. Project Operating Requirements.

14.1 Affordability Units. Borrower shall restrict occupancy to, and rent at Affordable Rents all of the Housing Units (but two reserved for manager units) to lower income households. Units are intended (but shall not be required) for “Senior Citizens” and otherwise to other “Qualified Permanent Residents” (as those terms are or may be defined in section 51.3 of the California Civil Code) or as permitted under the CC&Rs.

14.2 CC&Rs. From and after completion of the construction of the Property until the expiration of the Affordability Period as defined in the CC&Rs, Borrower shall not cause a default or breach under the terms of the CC&Rs.

15. Events of Default. The occurrence of any one or more of the following shall constitute an “Event of Default,” as such term is used herein:

15.1 If Borrower fails to repay principal under the Note when due at maturity;
14 15.2 If Borrower defaults in the performance of any of its other covenants, agreements and obligations under this Agreement involving the payment of money and fails to cure such default within five (5) days of receipt of written notice thereof from Lender;

15.3 If Borrower defaults in the performance of any of its nonmonetary covenants, agreements and obligations under this Agreement and fails to cure such default within thirty (30) days after written notice thereof from Lender except that if such default is susceptible of cure but cannot reasonably be cured within said thirty (30) days, it shall not constitute an Event of Default if Borrower promptly commences the cure of such default and diligently and continuously pursues such cure to completion with completion occurring not later than ninety (90) days after the initial notice of default from Lender;

15.4 If at any time or times hereafter any representation or warranty (including the representations and warranties of Borrower set forth in this Agreement), statement, report or certificate now or hereafter made by Borrower, is not true and correct in any material respect;

15.5 If all or substantially all of the assets of Borrower are attached, seized, or are levied upon, or come into the possession of any receiver, trustee, custodian or assignee for the benefit of creditors, and the same is not vacated, stayed, dismissed, set aside or otherwise remedied within sixty (60) days after the occurrence thereof;

15.6 If a notice of lien, levy or assessment is filed of record by any Governmental Authority with respect to all or any part of the property of Borrower, which could materially affect the performance of the obligations of Borrower hereunder or under the other Loan Documents, as the case may be, or if any proceeding is filed or commenced seeking to enjoin, restrain or in any way prevent Borrower from conducting all or a substantial part of its business affairs and Borrower fails to vacate, stay, dismiss, set aside or remedy the same within thirty (30) days after the occurrence thereof;

15.7 If Borrower fails, within ten (10) business days after Lender’s written request therefor, to pay Lender any amount by which the indebtedness under this Agreement may, at any time, exceed the face amount of the Note (except as otherwise provided herein);

15.8 If any petition is filed by or against Borrower under the United States Bankruptcy Code or any similar state or federal Law, whether now or hereafter existing (and, in the case of involuntary proceedings, failure to cause the same to be vacated, stayed or set aside within sixty (60) days after filing);

15.9 [Intentionally omitted];

15.10 Any default (beyond any applicable notice and cure periods thereunder) declared by any lender under any loan document related to any loans, other than the Loan, secured by a deed of trust on the Property shall act to accelerate automatically, without the need for any action or notice by Lender, the indebtedness evidenced by the Note;

15.11 If any assignment, pledge, encumbrance, transfer, option to purchase, hypothecation, conveyance, divestment, or other disposition of all or any portion of the Property is made in violation of this Agreement, whether directly or indirectly, whether 15 voluntarily or involuntarily or by operation of law (it being agreed, for the avoidance of doubt, that neither a Permitted Transfer nor any other transfer approved by Lender shall be an assignment, pledge, encumbrance, transfer, hypothecation or other disposition in violation of this Agreement);

15.12 From and after completion of the construction of the Property until the expiration of the Affordability Period as defined in the CC&Rs, Borrower shall cause a default or breach under the terms of the CC&Rs (beyond any applicable cure period thereunder); and

15.13 Any request by Borrower that Lender waive, forgive, or otherwise accept as full payment any amount less than the unpaid principal balance, all accrued and unpaid interest and all other sums due and payable under the Promissory Note or other Loan Documents shall act to accelerate automatically, without the need for any action or notice by Lender, the indebtedness evidenced by the Note.

8. Lender Remedies Upon Event of Default. Upon the occurrence of any Event of Default, Lender shall, in addition to all remedies conferred upon Lender by law and by the terms of the Note and the other Loan Documents, have the right but not the obligation to pursue any one or more of the following remedies concurrently or successively, it being the intent hereof that all such remedies shall be cumulative and that no such remedy shall be to the exclusion of any other:

8.1 Take any action whatever which, in Lender’s sole judgment, is necessary or appropriate to fulfill the covenants, agreements and obligations of Borrower under this Agreement and the Loan Documents;

8.2 Declare the Note to be immediately due and payable without notice to Borrower;

8.3 Use and apply any monies deposited by Borrower with Lender, regardless of the purpose for which the same was deposited, to cure any such default or to apply on account of any indebtedness under this Agreement which is due and owing to Lender; and

8.4 Exercise or pursue any other right or remedy permitted under this Agreement or any of the Loan Documents or conferred upon Lender by operation of Law.

9. Non-Waiver of Remedies. No waiver of any breach or default hereunder shall constitute or be construed as a waiver by Lender of any subsequent breach or default or of any breach or default of any other provision of this Agreement.

10. General Provisions.

10.1 Captions. The captions and headings of various Sections of this Agreement and Exhibits pertaining hereto are for convenience only and are not to be considered as defining or limiting in any way, the scope or intent of the provisions hereof.

10.2 Merger. This Agreement and the Loan Documents and instruments delivered in connection herewith, as may be amended from time-to-time in writing, constitute 16 the entire agreement of the parties with respect to the Loan, and all prior discussions, negotiations and document drafts are merged herein and therein. Neither Lender nor any employee of Lender has made or is authorized to make any representation or agreement upon which Borrower may rely unless such matter is made for the benefit of Borrower and is in writing signed by an authorized officer of Lender. Borrower agrees that it has not and will not rely on any custom or practice of Lender, or on any course of dealing with Lender, in connection with the Loan unless such matters are set forth in this Agreement or the Loan Documents or in an instrument made for the benefit of Borrower and in a writing signed by an authorized officer of Lender.

18.3 Notices. Any notice, demand, request or other communication which any party hereto may be required or may desire to give hereunder shall be in writing, addressed as follows and shall be deemed to have been properly given if hand delivered, if sent by reputable overnight courier (effective the business day following delivery to such courier) or if mailed (effective upon the later of two business days after mailing or actual receipt) by United States registered or certified mail, postage prepaid, return receipt requested:

To Lender: Lancaster Housing Authority
44933 Fern Avenue
Lancaster, California 93534
Attn: Executive Director
Copy To: Stradling Yocca Carlson & Rauth
660 Newport Center Drive, Suite 1600
Newport Beach, California 92660
Attn: Allison E. Burns
To Borrower: Maison’s Sierra Phase 2, LP
c/o Ravello Holdings, Inc.
2007 Cedar Avenue
Manhattan Beach, CA 90266
Attention: Phil Ram
Copy to:

The Hornbaker Law Firm, LLC
745 Fifth Avenue, Suite 500
New York, New York 10151
And to:

MCI Maison’s Sierra II, L.P.
c/o Merchants Capital Investments, LLC
410 Monon Boulevard
Carmel, Indiana 46032
Attention: Asset Management
Email: [email protected]
17 or at such other address as the party to be served with notice may have furnished in writing to the party seeking or desiring to serve notice as a place for the service of notice. Notices given in any other fashion shall be deemed effective only upon receipt.

18.4 Modification, Waiver. No modification, waiver, amendment, discharge or change of this Agreement shall be valid unless the same is in writing and signed by the party against which the enforcement of such modification, waiver, amendment, discharge or change is sought.

18.5 Governing Law. This agreement shall be governed by and construed under the laws of the State of California.

18.6 Acquiescence Not to Constitute Waiver of Lender’s Requirements.

Each and every covenant and condition for the benefit of Lender contained in this Agreement may be waived by Lender, provided, however, that to the extent that Lender may have acquiesced in any noncompliance with any conditions precedent to the Closing or to any subsequent disbursement of Loan proceeds, such acquiescence shall not be deemed to constitute a waiver by Lender of such requirements with respect to any future disbursements of Loan proceeds.

18.7 Disclaimers by Lender.
(a) This Agreement is made for the sole benefit of Borrower and Lender, and no other person or persons shall have any benefits, rights or remedies under or by reason of this Agreement, or by reason of any actions taken by Lender or Borrower pursuant to this Agreement. Lender shall not be liable for any debts or claims accruing in favor of any such parties against Borrower or others. Borrower shall not be an agent of Lender for any purpose. Except as expressly set forth in the Loan Documents, Lender is not and shall not be an agent of Borrower for any purpose. Lender, by making the Loan or any action taken pursuant to any of the Loan Documents, shall not be deemed a partner or a joint venturer with Borrower or fiduciary of Borrower; and
(b) By accepting or approving anything required to be observed, performed, fulfilled or given to Lender pursuant to the Loan Documents, including any certificate, statement of profit and loss or other financial statement, Lender shall not be deemed to have warranted or represented the sufficiency, legality, effectiveness or legal effect of the same, or of any term provision or condition thereof, and such acceptance or approval thereof shall not constitute a warranty or representation to anyone with respect thereto by Lender.

18.8 Right of Lender to Make Advances to Cure Defaults. If Borrower shall fail to perform in a timely fashion any of its covenants, agreements or obligations contained in this Agreement or any of the Loan Documents and the performance thereof constitutes an Event of Default, Lender may (but shall not be required to) perform any of such covenants, agreements and obligations.

18.9 Definitions Include Amendments. Definitions contained in this Agreement which identify agreements, including the Loan Documents, shall be deemed to include all amendments and supplements to such documents from the date hereof, and all future amendments and supplements thereto entered into from time-to-time to satisfy the 18 requirements of this Agreement or otherwise with the consent of Lender. Reference to this Agreement contained in any of the foregoing documents shall be deemed to include all amendments and supplements to this Agreement.

18.10 Time is of the Essence. Time is hereby declared to be of the essence of this Agreement and of every part hereof.

18.11 Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

18.12 Waiver of Consequential Damages. In no event shall Lender be liable to Borrower for consequential damages, whatever the nature of a breach by Lender of its obligations under this Loan Agreement, or any of the Loan Documents, and Borrower hereby waives all claims for consequential damages.

18.13 Claims Against Lender. Lender shall not be in default under this Agreement, or under any other Loan Documents, unless a written notice specifically setting forth the claim shall have been given to Lender within six (6) months after Borrower first had knowledge of the occurrence of the event which Borrower alleges gave rise to such claim and Lender does not remedy or cure the default, if any there be, promptly thereafter. If it is determined in any proceedings that Lender has improperly failed to grant its consent or approval, where such consent or approval is required by this Loan Agreement or any other Loan Documents, the sole remedy of Borrower shall be to obtain declaratory relief determining such withholding to have been improper, and Borrower hereby waives all claims for damages or set off against Lender resulting from any withholding of consent or approval by Lender.

18.14 Severability. The Parties intend and believe that each provision in this Agreement comports with all applicable local, state and federal laws and judicial decisions.

However, if any provision or provisions, or if any portion of any provision or provisions, in this Agreement is found by a court of law to be in violation of any applicable local, state, or federal law, statute, ordinance, administrative or judicial decision, or public policy, and if such courts declare such portion, provision, or provisions of this Agreement to be illegal, invalid, unlawful, void or unenforceable as written, then it is the intent of all parties hereto that such portion, provision, or provisions shall be given force to the fullest possible extent that they are legal, valid and enforceable, and that the remainder of this Agreement shall be construed as if such illegal, invalid, unlawful, void, or unenforceable portion, provision, or provisions were not contained therein, and that the rights, obligations, and interests of the Parties under the remainder of this Agreement shall continue in full force and effect.

18.15 Subordination. Lender agrees that this Loan is and shall be subject and subordinate in right of payment and lien priority to (i) the Construction Loan pursuant to the Subordination Agreement (as defined herein) by and between Construction Lender and Lender and (ii) the Permanent Loan pursuant to a subordination agreement to be entered into between Lender and Permanent Lender. All of the terms and conditions of this Agreement pertaining to or affecting the Senior Loan shall inure to the benefit of the Senior Lender. If any (prospective) Senior Lender shall require (i) any modification(s) of the terms of this Agreement or the Subordination Agreement (including without limitation terms pertaining to the terms of the 19 subordination and the relative rights of Senior Lender and Lender) or (ii) a replacement subordination agreement in lieu of the Subordination Agreement, then Lender shall, at Borrower’s request, promptly execute and deliver to such Senior Lender such instruments or agreements effecting such modification(s) or replacement subordination agreement as such (prospective) Senior Lender requires, provided such modifications or replacement agreement do not materially diminish the rights of Lender or materially increase the obligations of Lender under the Loan Documents. If the context so requires, all references herein to the Construction Loan Documents and Construction Lender shall mean, respectively, the refinance loan documents pertaining to the Permanent Loan and the Permanent Lender, and all references to the Subordination Agreement shall mean, as applicable, such agreement as amended or any replacement subordination agreement between Lender and the Permanent Lender, as amended from time to time. Nothing in this Agreement shall require Lender to subordinate its rights under this Agreement or the Promissory Note to any loan, obligation, or requirement (other than the Construction Loan and Permanent Loan). For avoidance of doubt, Lender’s rights hereunder shall not be subordinate to any restructuring, refinancing or other modification of the Permanent Loan. [Signatures begin on next page.]
20 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first set forth above.

LENDER:

LANCASTER HOUSING AUTHORITY,
a public body, corporate and politic
By: ____________________________
Name: ____________________________
Its: ____________________________
BORROWER:

MAISON’S SIERRA PHASE 2, LP,
a California limited partnership
By: ____________________________
Name: ____________________________
Its: ____________________________
A-1
EXHIBIT “A”

PROPERTY LEGAL DESCRIPTION

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF LANCASTER, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

LOT 99 OF TRACT NO. 84221, IN THE CITY OF LANCASTER, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 1453, PAGES 1 THROUGH 12, INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

EXCEPTING THEREFROM ALL INTEREST OF GRANTOR IN OIL, GAS, HYDROCARBON

SUBSTANCES AND MINERALS OF EVERY KIND AND CHARACTER LYING MORE THAN FIVE HUNDRED (500) FEET BELOW THE SURFACE, TOGETHER WITH THE RIGHT TO

DRILL INTO, THROUGH AND TO USE AND OCCUPY ALL PARTS OF THE PHASE PARCEL LYING MORE THAN 500 HUNDRED (500) FEET BELOW THE SURFACE THEREOF FOR

ANY AND ALL PURPOSES INCIDENTAL TO THE EXPLORATION FOR AND THE

PRODUCTION OF OIL, GAS, HYDROCARBON SUBSTANCES OR MINERALS FROM SAID

PHASE PARCEL OR OTHER LANDS, BUT WITHOUT, HOWEVER, ANY RIGHT TO USE

EITHER THE SURFACE OF THE PHASE PARCEL OR ANY PORTION THEREOF WITHIN FIVE HUNDRED (500) FEET OF THE SURFACE FOR ANY PURPOSE OR PURPOSES

WHATSOEVER, OR TO USE THE PHASE PARCEL IN SUCH A MANNER AS TO CREATE A

DISTURBANCE TO THE USE OR ENJOYMENT OF THE PHASE PARCEL, AS RESERVED

BY LANCASTER HOUSING AUTHORITY, A PUBLIC BODY CORPORATE AND POLITIC, RECORDED MAY 10, 2024 AS INSTRUMENT NO. 20240310222, OF OFFICIAL RECORDS.

APN: 3135-001-912, APN: 3135-001-923, APN: 3135-001-925, APN: 3135-001-929, APN: 3135- 001-927 (PORTION) AND APN: 3135-001-920 (PORTION)
B-1
EXHIBIT “B”

SITE MAP
PHASE 2A ONLY

C-1
EXHIBIT “C”

SCOPE OF DEVELOPMENT
171 units of housing, consisting of 169 restricted rental units and 2 unrestricted manager's A mix of Housing Units as follows:

E-1
EXHIBIT “D”

SCHEDULE OF PERFORMANCE
Borrower shall cause construction of the Improvements to commence on or prior to the date that is 60 days following the date hereof.
Borrower shall cause construction of the Improvements to be substantially complete on or prior to the last day of the 36th month following the Effective Date (subject to events of force majeure), as the same may be amended, modified or supplemented from time to time by mutual written agreement of the Parties and in accordance with the terms of the Senior Loan.

E-2
EXHIBIT “E”

PROMISSORY NOTE
$4,000,000.00 ___, 2025
Lancaster, California
FOR VALUE RECEIVED, MAISON’S SIERRA PHASE 2, LP, a California limited partnership (“Borrower”), promises to pay to LANCASTER HOUSING AUTHORITY, a public body, corporate and politic (“Lender”), or order, at Lender’s office at 44933 Fern Avenue, Lancaster, California 93534, or such other place as Lender may designate in writing, the sum of Three Million Five Hundred Nine Thousand Seven Hundred Fifty-Six and 67/100 Dollars ($3,509,756.67) (the “Note Amount”), in currency of the United States of America, which at the time of payment is lawful for the payment of public and private debts.

1. Agreement. This Promissory Note (“Note”) is given in accordance with that certain Loan Agreement executed by Lender and Borrower, dated as of _________, 2025 (“Agreement”). The rights and obligations of Borrower and Lender under this Note shall be governed by the Agreement and by the additional terms set forth in this Note. In the event of any inconsistencies between the terms of this Note and the terms of the Agreement or any other document related to the Note Amount, the terms of this Note shall prevail.

2. Interest. The balance of the Note Amount outstanding from time to time shall bear simple interest at the rate of 3.81% per annum (the “Note Rate”) from the date hereof through and including the date of repayment.

3. Repayment of Note Amount. Accrued interest on the Note Amount shall be paid annually in arrears out of Residual Receipts (as defined below) (from the operation of the Project for the preceding calendar year) and shall be paid by Borrower in the form of a cashier’s check which shall be delivered to Lender on or before the ninetieth (90 th) day after the end of each calendar year for the full calendar year just ended, commencing with the first full calendar year during the term of this Note occurring following the date the Project is placed in service, until the Note Amount together with all accrued and unpaid interest thereon (including any Deferred Interest (as defined below)) has been repaid in full; provided, however, that the amount of each annual payment shall be limited to the lesser of (i) the sum of (A) the amount of interest on the Note Amount that accrued during the calendar year just ended (the “Current Accrued Interest Amount”) and (B) the amount of then unpaid Accumulated Deferred Interest (if any), and (ii) one-half of Residual Receipts for the calendar year just ended. For purposes of calculating Residual Receipts, partnership management fees, deferred developer fees, or repayments on loans to Borrower’s partners shall not constitute or be included in Operating Expenses or Debt Service and shall not be deduced from Annual Project Revenue. To the extent that the Current Accrued Interest Amount is greater than one-half of Residual Receipts for a particular fiscal year, the amount of such excess is referred to herein as “Deferred Interest.” The “Accumulated Deferred Interest” shall mean, as of the date of determination, the sum of all Deferred Interest from the year just ended (if any) and all prior years (if any), less the total amount of Deferred Interest that has been paid by Borrower to Lender. Any Deferred Interest from time to time outstanding shall bear interest at the Note Rate from and after the last day of the calendar year during which such Deferred Interest arose through and including the date on which such Deferred Interest is paid in full. Any remaining portion of the Note Amount and any unpaid Accumulated Deferred Interest shall be due and payable in full on E-3
the Loan Maturity Date. Notwithstanding the foregoing, the full Note Amount may be accelerated as set forth in Section 11 hereof.

As used herein, “Residual Receipts” shall have the meaning ascribed thereto in the Agreement.

On or before ninety (90) days after the end of the Borrower’s fiscal year, of each year commencing in the year of the issuance of a certificate of occupancy for the Project, Borrower shall annually provide Lender a Residual Receipts report, in the form attached to the Agreement as Exhibit “G” and that shall describe in detail the Annual Project Revenue, Debt Service, Operating Expenses, Reserve Deposits and Residual Receipts for that year. Borrower shall also submit to Lender, on or before ninety (90) days after the end of Borrower’s fiscal year, of each year commencing in the year of the issuance of a certificate of occupancy for the Project, annual financial statements with respect to the Project that have been prepared by Borrower and reviewed by an independent certified public accountants to confirm that said financial statements present the financial position, results of operations, and cash flows of Borrower fairly and in accordance with the income tax method of accounting (or such other method of accounting used by Borrower (and reasonably acceptable to Lender) consistently applied.

4. Security. This Note is secured by a Deed of Trust (“Deed of Trust”) dated as of the same date as this Note.

5. Waivers
a.Borrower expressly agrees that this Note or any payment hereunder may be extended from time to time at Lender’s sole discretion and that Lender may accept security in consideration for any such extension or release any security for this Note at its sole discretion all without in any way affecting the liability of Borrower. b.No extension of time for payment of this Note made by agreement by Lender with any person now or hereafter liable for the payment of this Note shall operate to release, discharge, modify, change or affect the original liability of Borrower under this Note, either in whole or in part. c.The obligations of Borrower under this Note shall be absolute and Borrower waives any and all rights to offset, deduct or withhold any payments or charges due under this Note for any reasons whatsoever.
d.Borrower waives presentment, demand, notice of protest and nonpayment, notice of default or delinquency, notice of acceleration, notice of costs, expenses or leases or interest thereon, notice of dishonor, diligence in collection or in proceeding against any of the rights of interests in or to properties securing of this Note, and the benefit of any exemption under any homestead exemption laws, if applicable.
e.No previous waiver and no failure or delay by Lender in acting with respect to the terms of this Note or the Deed of Trust shall constitute a waiver of any breach, default, or failure or condition under this Note, the Deed of Trust or the obligations secured thereby. A waiver of any term of this Note, the Deed of Trust or of any of the obligations secured thereby must be made in writing and shall be limited to the express written terms of such waiver.

E-4

6. Attorneys’ Fees and Costs. Borrower agrees that if any amounts due under this Note are not paid when due, to pay in addition, all costs and expenses of collection and reasonable attorneys’ fees paid or incurred in connection with the collection or enforcement of this Note, whether or not suit is filed.

7. Amendments and Modifications. This Note may not be changed orally, but only by an amendment in writing signed by Borrower and by Lender.

8. Lender May Assign. Lender may, at its option, assign its right to receive payment under this Note without necessity of obtaining the consent of the Borrower. Lender shall provide Borrower written notice of any such assignment, and Borrower shall be entitled to rely on such notice.

9. Borrower Assignment Prohibited. Except in the case of a Permitted Transfer, Borrower shall not assign or transfer any portion of this Note without the prior express written consent of Lender, which consent shall not unreasonably be withheld, conditioned or delayed.

10. Terms. Any terms not separately defined herein shall have the same meanings as set forth in the Agreement.

11. Acceleration and Other Remedies. Upon the occurrence of an Event of Default (as defined in the Agreement), Lender may, at Lender’s option by giving written notice thereof to Borrower, declare the outstanding principal amount of this Note, together with the then accrued and unpaid interest thereon (including any Accumulated Deferred Interest) and other charges hereunder, and all other sums secured by the Deed of Trust, to be due and payable immediately, and upon such declaration, such principal and interest and other sums shall immediately become and be due and payable without further demand or notice, all as further set forth in the Deed of Trust. All costs of collection, including, but not limited to, reasonable attorneys’ fees and all expenses incurred in connection with protection of, or realization on, the security for this Note, may be added to the principal hereunder, and shall accrue interest as provided herein. Lender shall at all times have the right to proceed against any portion of the security for this Note in such order and in such manner as Lender may consider appropriate, without waiving any rights with respect to any of the security. Any delay or omission on the part of Lender in exercising any right hereunder, under the Agreement or under the Deed of Trust shall not operate as a waiver of such right, or of any other right. No single or partial exercise of any right or remedy hereunder or under the Agreement or any other document or agreement shall preclude other or further exercises thereof, or the exercise of any other right or remedy. The acceptance of payment of any sum payable hereunder, or part thereof, after the due date of such payment shall not be a waiver of Lender’s right to either require prompt payment when due of all other sums payable hereunder or to declare an Event of Default for failure to make prompt or complete payment.

12. Intentionally omitted.

13. Successors and Assigns. Whenever “Lender” is referred to in this Note, such reference shall be deemed to include its successors and assigns, including, without limitation, any subsequent assignee or holder of this Note. All covenants, provisions and agreements by or on behalf of Borrower, and on behalf of any makers, endorsers, guarantors and sureties hereof which are contained herein shall inure to the benefit of Lender and Lender’s successors and assigns.

E-5

14. Miscellaneous. Time is of the essence hereof. This Note shall be governed by and construed under the laws of the State of California except to the extent Federal laws preempt the laws of the State of California. Borrower irrevocably and unconditionally submits to the jurisdiction of the Superior Court of the State of California for the County of Los Angeles or the United States District Court of the Central District of California, as Lender may deem appropriate, in connection with any legal action or proceeding arising out of or relating to this Note. Borrower also waives any objection regarding personal or in rem jurisdiction or venue.

15. Subordination. The indebtedness evidenced by this Note is and shall be subordinate in right of payment to the prior payment in full of the indebtedness evidenced by a (i) the promissory note dated as of even date herewith (“Construction Note”) in the original principal amount of up to $[33,846,000.00] (“Construction Loan”), executed by Borrower and payable to the order of Merchants Bank of Indiana, an Indiana chartered bank (“Construction Lender”), to the extent and in the manner provided in that certain Subordination Agreement dated as of even date herewith between the payee of this Note, Construction Lender and Lender (the “Construction Subordination Agreement”); and (ii) upon the repayment in full of the Construction Loan, the Amended and Restated Multifamily Note (and any schedules) (“Permanent Note”) in the original principal amount of $[23,620,000.00], executed by Borrower and payable to the order of California Municipal Finance Authority, as assigned to Fannie Mae (“Permanent Lender”) and U.S. Bank Trust Company, National Association, to the extent and in the manner provided in that certain Subordination Agreement between the payee of this Note, Permanent Lender and Lancaster Housing Authority, a public body corporate and politic (the “Permanent Subordination Agreement”). That certain Deed of Trust securing this Note (“Deed of Trust”) is and shall be subject and subordinate in all respects to the liens, terms, covenants and conditions of the (i) that certain Construction Deed of Trust, Assignment of Rents and Leases, Security Agreement and Fixture Filing, dated the date hereof, made by Borrower for the benefit of Construction Lender securing the Construction Note and the terms, covenants and conditions of the Construction Loan Agreement evidencing the terms of the Construction Note, as more fully set forth in the Construction Subordination Agreement; and (ii) upon the repayment in full of the Construction Loan, the Multifamily Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing (and any exhibits) securing the Permanent Note and the terms, covenants and conditions of the Reimbursement Agreement evidencing the terms of the Permanent Note, as more fully set forth in the Permanent Subordination Agreement. The rights and remedies of Lender and each subsequent holder of this Note under the Deed of Trust are subject to the restrictions and limitations set forth in the Construction Subordination Agreement or Permanent Subordination Agreement, whichever is in effect at the time. Each subsequent holder of this Note shall be deemed, by virtue of such holder’s acquisition of the Note, to have agreed to perform and observe all of the terms, covenants and conditions to be performed or observed by Lender named herein under the Construction Subordination Agreement or the Permanent Subordination Agreement, whichever is in effect at the time.

E-6
This Note shall be a nonrecourse obligation of the Borrower and is nonrecourse to the Borrower’s partners.

BORROWER:

MAISON’S SIERRA PHASE 2, LP,
a California limited partnership
By: ____________________________
Name: ____________________________
Its: ____________________________
F-1
EXHIBIT “F”

DEED OF TRUST

RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:

Lancaster Housing Authority
44933 N. Fern Avenue
Lancaster, California 93534
Attention: Executive Director
This document is exempt from the payment of a
recording fee pursuant to Government Code Section
6103.

DEED OF TRUST WITH ASSIGNMENT OF RENTS
(SHORT FORM)
This DEED OF TRUST, dated as of __________, 2025, between MAISON’S SIERRA PHASE 2, LP, a California limited partnership, herein called TRUSTOR, whose address is [trustor’s address], [trustee’s name], a California corporation, herein called TRUSTEE, and LANCASTER HOUSING AUTHORITY, a public body, corporate and politic, herein called BENEFICIARY, WITNESSETH: That Trustor grants to Trustee in trust, with power of sale, that property in the City of Lancaster, County of Los Angeles, State of California, described as:

See Attachment No. 1 attached hereto.
together with the rents, issues and profits thereof, subject, however, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits for the purpose of securing (1) Trustor’s performance of that certain Loan Agreement (“Agreement”) dated as of ___________, 2025, entered into by and between Trustor and Beneficiary, (2) Trustor’s performance of each agreement or other document attached to and incorporated in the Agreement and (3) payment of any sums and interest thereon which may hereafter be loaned to Trustor, or its successors or assigns, when evidenced by a promissory note or notes reciting that they are secured by this Deed of Trust.

To protect the security of this Deed of Trust, and with respect to the property above described, Trustor expressly makes each and all of the agreements, and adopts and agrees to perform and be bound by each and all of the terms and provisions set forth in subdivision A, and it is mutually agreed that each and all of the terms and provisions set forth in subdivision B of the fictitious deed of trust recorded in Orange County August 17, 1964, and in all other counties August 18, 1964, in the book and at the page of Official Records in the office of the county recorder of the county where said property is located, noted below opposite the name of such county, namely:
(continued on next page)
F-2

COUNTY BOOK PAGE COUNTY BOOK PAGE COUNTY BOOK PAGE COUNTY BOOK PAGE Alameda 1288 556 Kings 858 713 Placer 1028 379 Sierra 38 187 Alpine 3 130-31 Lake 437 110 Plumas 166 1307 Siskiyou 506 762 Amador 133 438 Lassen 192 367 Riverside 3778 347 Solano 1287 621 Butte 1330 513 Los Angeles T-3878 874 Sacramento 5039 124 Sonoma 2067 427 Calaveras 185 338 Madera 911 136 San Benito 300 405 Stanislaus 1970 56 Colusa 323 391 Marin 1849 122 San Bernardino 6213 768 Sutter 655 585 Contra Costa 4684 1 Mariposa 90 453 San Francisco A-804 596 Tehama 457 183 Del Norte 101 549 Mendocino 667 99 San Joaquin 2855 283 Trinity 108 595 El Dorado 704 635 Merced 1660 753 San Luis Obispo 1311 137 Tulare 2530 108 Fresno 5052 623 Modoc 191 93 San Mateo 4778 175 Tuolumne 177 160 Glenn 469 76 Mono 69 302 Santa Barbara 2065 881 Venture 2607 237 Humboldt 801 83 Monterey 357 239 Santa Clara 6626 664 Yolo 769 16 Imperial 1189 701 Napa 704 742 Santa Cruz 1638 607 Yuba 398 693 Inyo 165 672 Nevada 363 94 Shasta 800 633
Kern 3756 690 Orange 7182 18 San Diego SERIES 5 Book 1964, Page 149774 shall inure to and bind the parties hereto, with respect to the property above described. Said agreements, terms and provisions contained in said subdivisions A and B, (identical in all counties, and printed on pages 3 and 4 hereof) are by the within reference thereto, incorporated herein and made a part of this Deed of Trust for all purposes5 as fully as if set forth at length herein, and Beneficiary may charge for a statement regarding the obligation secured hereby, provided the charge therefor does not exceed the maximum allowed by law.

The undersigned Trustor, requests that a copy of any notice of default and any notice of sale hereunder be mailed to him at his address hereinbefore set forth.

Signature of Trustor

STATE OF CALIFORNIA
COUNTY OF _______________________________
On _____________________________________ before
me, Notary Public,
__________________________________________,
personally appeared
______________________________________ who
proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/here/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of
the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature ____________________________________
_______________________,
a __________________________
By: ____________________________
Name:___________________________
Title: ____________________________
(This area for official notarial seal)
5 Note: The incorporation of the covenants by reference is under review by Borrower. We think it will be helpful to chat about them as we get a little closer to closing.

F-3
(continued on next page)
F-4
DO NOT RECORD 7
The following is a copy of Subdivisions A and B of the fictitious Deed of Trust recorded in each county in California as stated in the foregoing Deed of Trust and incorporated by reference in said Deed of Trust as being a part thereof as if set forth at length therein.

A. To protect the security of this Deed of Trust, Trustor agrees:
(1) To keep said property in good condition and repair, not to remove or demolish any building thereon; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor, to comply with all laws affecting said property or requiring any alterations or improvements to be made thereon, not to commit or permit waste thereof; not to commit, suffer or permit any act upon said property in violation of law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character or use of said property may be reasonably necessary, the specific enumerations herein not excluding the general. (2) To provide, maintain and deliver to Beneficiary fire insurance satisfactory to and with loss payable to Beneficiary. The amount collected under any fire or other insurance policy may be applied by Beneficiary upon any indebtedness secured hereby and in such order as Beneficiary may determine, or at option of Beneficiary the entire amount so collected or any part thereof may be released to Trustor. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. (3) To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorney’s fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed.
(4) To pay: at least ten days before delinquency all taxes and assessments affecting said property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto; all costs, fees and expenses of this Trust.

Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary of Trustee, but without obligation so to do and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may: make or do the same is such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes; appear in and defeat any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees.
(5) To pay immediately and without demand all sums so expended by Beneficiary or Trustee, with interest from date of expenditure at the amount allowed by law in effect at the date hereof, and to pay for any statement provided for by law in effect at the date hereof regarding the obligation secured hereby any amount demanded by the Beneficiary not to exceed the maximum allowed by law at the time when said statement is demanded.

B. It is mutually agreed:
(1) That any award of damages in connection with any condemnation for public use of or injury to said property or any part thereof is hereby assigned and shall be paid to Beneficiary who may apply or release such monies received by him in the same manner and with the same effect as above provided for disposition of proceeds of fire or other insurance.
(2) That by accepting payment of any sum secured hereby after its due date, Beneficiary does not waive his right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay.
7 See footnote 2.

F-5
(3) That at any time or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of this Deed and said note for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, Trustee may: reconvey any part of said property; consent to the making of any map or plat thereof; join in granting any easement thereon, or join in any extension agreement or any agreement subordinating the lien or charge hereof. (4) That upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed and said note to Trustee for cancellation and retention or other disposition as Trustee in its sole discretion may choose and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. The Grantee in such reconveyance may be described as “the person or persons legally entitled thereto”. (5) That as additional security, Trustor hereby gives to and confers upon Beneficiary the right, power and authority, during the continuance of these Trusts, to collect the rents, issues and profits of said property, reserving unto Trustor the right, prior to any default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, to collect and retain such rents, issues and profits as they become due and payable. Upon any such default, Beneficiary may at any time without notice, either in person, by agent, or by a receiver to be appointed by a court, and without regard to the adequacy of any security for the indebtedness hereby secured, enter upon and take possession of said property or any part thereof, in his own name sue for or otherwise collect such rents, issues, and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorney’s fees, upon any indebtedness secured hereby, and in such order as Beneficiary may determine. The entering upon and taking possession of said property, the collection of such rents, issues and profits and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. (6) That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed, said note and all documents evidencing expenditures secured hereby.

After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale.

After deducting all costs, fees and expenses of trustee and of this Trust, including costs of evidence of title in connection with sale, Trustee shall apply the proceeds of sale to payment of: all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the person or persons legally entitled thereto. (7) Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where said property is situated shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties. Said instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed is recorded and the name and address of the new Trustee.

F-6
(8) That this Deed applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term Beneficiary shall mean the owner and holder, including pledgees, of the note secured hereby, whether or not named as Beneficiary herein. In this Deed, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural.
(9) That Trustee accepts this Trust when this Deed, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary or Trustee shall be a party unless brought by Trustee.

DO NOT RECORDREQUEST FOR FULL RECONVEYANCE
______________________________________, TRUSTEE:

The undersigned is the legal owner and holder of the note and of all indebtedness secured by the foregoing Deed of Trust. Said note, together with all other indebtedness secured by said Deed of Trust, have been fully paid and satisfied; and you are hereby requested and directed, on payment to you of any sums owing to you under the terms of said Deed of Trust, to cancel said note above mentioned, an all other evidences of indebtedness secured by said Deed of Trust delivered to you herewith, together with the said Deed of Trust, and to reconvey, without warranty, to the parties designated by the terms of said Deed of Trust, all the estate now held by you under the same.

Dated _______________________________________
________________________________________________________ ________________________________________________________ Please mail Deed of Trust,
Note and Reconveyance to
Do Not lose or destroy this Deed of Trust OR THE NOTE which it secures. Both must be delivered to the Trustee for cancellation before reconveyance will be made.

ATTACHMENT NO. 1

PROPERTY LEGAL DESCRIPTION
[INSERT]
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
) ss.

COUNTY OF ____________ )
On _________________________________, before me, ______________________________________, Notary Public, (Print Name of Notary Public)
personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT Individual
Corporate Officer
________________________________________________
Title(s)
________________________________________________
Title Or Type Of Document
________________________________________________
Number Of Pages
________________________________________________
Date Of Documents
Partner(s) Limited General
Attorney-In-Fact
Trustee(s)
Guardian/Conservator
Other:______________________________________
Signer is representing:

Name Of Person(s) Or Entity(ies)
________________________________________________
________________________________________________ ________________________________________________ Signer(s) Other Than Named Above
EXHIBIT “G”

FORM OF RESIDUAL RECEIPTS REPORT
Lancaster Housing Authority
__________________ Housing Project
Residual Receipts Report
for the Year Ending______________
Date Prepared ________________
Please complete the following information and execute the certification at the bottom of this form.

Annual Project Revenue
Please report Annual Project Revenue for the year ending ________________ on the following lines:

Rent Payments (including Section 8 tenant assistance payments, if any) (1) $ Interest Income (do not include interest income from replacement and operating reserves nor interest income on tenant security deposits) (2) $ Additional Income Related to Project Operations (for example, vending machine income, tenant forfeited deposits, laundry income not paid to the residents’ association)
(3) $
Total Annual Project Revenue (Add lines 1, 2, and 3) (4) $ Operating Expenses1
Please report Operating Expenses incurred in relation to the operations of the Project for the year ending ______________, on the following lines:

Operating and Maintenance Expenses (5) $
Utilities (6) $
Property management Expenses and On-Site Staff Payroll (7) $ Administrative Expenses Incurred by Project (8) $
Property Taxes (9) $
Insurance (10) $
Other Expenses Related to Operations of the Project
Please list these expenses:
(11) $
Total Annual Operating Expenses
(Add lines 5, 6, 7, 8, 9, 10, and 11)
(12) $
Net Operating Income (Subtract Line 12 from Line 4) (13) $ 1 Do not include expense unrelated to the Project’s operations, such as depreciation, amortization, accrued principal and interest expense on deferred payment debt, or capital expenditures.

Additional Cash Flow Payments
Obligated Debt Service Payments (as approved by the Lender and other parties that may have such approval rights)
(14) $
Scheduled Deposits to Reserves (as approved by the Lender) (15) $ Additional Payment Obligations (such as partnership management fees, deferred developer fees, or repayments on loans to partners, as approved by the Lender to have priority over Residual Receipt Payment to the Lender (16) $
Total Additional Cash Flow Payments (Add lines 14, 15, and 16) (17) $ Residual Receipts for Year Ending ________________________ (Subtract Line 17 from Line 13)
(18) $
Percentage of Residual Receipts to be Paid to the Lender (as shown in the Promissory Note by and between the Lender and Borrower dated ____________________________________)
(19) %
Amount Payable to the Lender (Multiply Line 18 by Line 19) (20) $ The amount payable to the Lender listed on Line 2 is subject to payment according to the terms of the Promissory Note by and between the Lender and Borrower dated ______________________. If Line 20 is $0.00 or negative, you owe nothing to the Lender this year. If Line 20 is a positive number, remit check payable to Lancaster Housing Authority and attach to this report.

Computation of Residual Receipts
for the Year Ending ______________________
The following certification should be executed by the Executive Director or Chief Financial Officer of the Borrower, or the Managing General Partner of the Borrower.

I certify that the information provided in this form is true, accurate, and correct in all respects.

Date: ________________ By: ____________________________ Name: ____________________________
Its: ____________________________
EXHIBIT “H”

PERMITTED EXCEPTIONS
[TO BEINSERT]

Lancaster City CouncilJuly 8, 2025

Lancaster City Council
July 8, 2025