Agenda packet — Lincoln City Council, October 28, 2025 (part 4 of 5)

Ownership TableUnitCommunityOwnershipTypical Lot Size (SF)Tax ZoneAssessedAppraisedNo. of LotsUnit 1RevereIndividual Homeowners5,00011211122Unit 2MonumentTri Pointe Homes and Individual Homeowners4,5002227092Unit 3HeartlandsIndividual Homeowners3,375398098Unit 4TraditionsIndividual Homeowners3,015497097Unit 5MonumentTri Pointe Homes and Individual Homeowners4,0005316192Unit 6JubileeTri Pointe Homes and Individual Homeowners3,8006385290Total407184591Total - City of Lincoln CFD No. 2019-1 (Independence at Lincoln) As of the effective date of value, September 1, 2025, the subject consists of a portion of the CFD (taxable parcels) comprising 184 finished lots, homes under construction and completed homes that have not been assigned an assessed value (or nominal value) for structural improvements for the 2025-2026 tax year. The balance of the CFD is 407 homes for which the County has already assigned an assessed value greater than $400,000 for the 2025-2026 tax year. A more detailed legal and physical description of the subject property is contained within the attached report.

The appraisal conforms to the Uniform Standards of Professional Appraisal Practice (USPAP), the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute, and applicable state appraisal regulations. The Appraisal Report is also prepared in accordance with the Appraisal Standards for Land Secured Financing published by the California Debt and Investment Advisory Commission (CDIAC) (2004).

Standards Rule 2-2 (Content of a Real Property Appraisal Report) contained in the Uniform Standards of Professional Appraisal Practice (USPAP) requires each written real property appraisal report to be prepared as either an Appraisal Report or a Restricted Appraisal Report. This report is prepared as an Appraisal Report as defined by USPAP under Standards Rule 2-2(a), and incorporates practical explanation of the data, reasoning, and analysis that were used to develop the opinion of value.

Based on the valuation analysis in the accompanying Appraisal Report, and subject to the hypothetical condition, definitions, assumptions, and limiting conditions expressed in the report, the concluded opinions of value, as of the date of value, September 1, 2025, is as follows:

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Market Value by OwnershipLots/Parcels/HomesLot/Home ValuePermits and FeesValue per ComponentMarket Value (Rd.)Tri Pointe Homes Holdings Inc.Finished LotsUnit 269$179,000 -$179,000 $12,351,000 Unit 540$173,000 -$173,000 $6,920,000 Unit 630$171,000 -$171,000 $5,130,000 Homes Under ConstructionUnit 512$173,000 $71,300 $244,300 $2,932,000 Unit 611$171,000 $71,300 $242,300 $2,665,000 Completed HomesUnit 53$535,000 -$535,000 $1,605,000 (Not-Less-Than)Unit 67$485,000 -$485,000 $3,395,000 (Not-Less-Than)Bulk Market Value - Tri Pointe Homes Holdings Inc.172$34,998,000 Individual HomeownersCompleted HomesUnit 11$465,000 -$465,000 $465,000 (Not-Less-Than)Unit 21$540,000 -$540,000 $540,000 (Not-Less-Than)Unit 56$535,000 -$535,000 $3,210,000 (Not-Less-Than)Unit 64$485,000 -$485,000 $1,940,000 (Not-Less-Than)Aggregate Value - Individual Homeowners12$6,155,000 Aggregate Appraised Value, subject to a hypothetical condition184$41,153,000 Assessed ValueUnit 1121---$80,861,776 Unit 222---$14,892,667 Unit 398---$55,416,187 Unit 497---$49,638,157 Unit 531---$20,453,706 Unit 638---$22,080,769 Aggregate, or Cumulative, Assessed Values407$243,343,262 Total Aggregate, or Cumulative, Value - City of Lincoln CFD No. 2019-1 (Independence at Lincoln)591 $284,496,262

Extraordinary Assumptions and Hypothetical Conditions(None)1. The value derived herein is based on the hypothetical condition that certain public improvements to be reimbursed by the CFD No. 2019-1 Special Tax Bonds, Series 2025, have been paid.The use of any extraordinary assumption or hypothetical condition may have affected the assignment results.The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.

The opinions of value represent a "not-less-than" value due to the fact we were requested to provide a market value for the smallest floor plan in each community improved with a completed home without a complete assessed improvement value reflected on the County of Placer Assessor's Tax Roll.

Please note the aggregate of the appraised values is not the market value of the appraised properties in bulk. As defined by The Dictionary of Real Estate Appraisal, an aggregate value is the "total of multiple market value conclusions." For purposes of this Appraisal Report, market value is estimated by ownership.
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As a condition of this assignment, the Assessed Values for certain Assessor's Parcels with completed and sold homes with a complete Assessed Value for both Land and Improvements greater than $400,000 for the 2025-2026 tax year is presented herein for illustration purposes only. As requested, these Assessor's Parcels are not appraised herein with a not-less-than market value; instead, the assigned County of Placer Assessor's value will be relied upon for underwriting purposes.

If you have any questions or comments, please contact the undersigned. Thank you for the opportunity to be of service.

Respectfully submitted,
Integra Realty Resources - Sacramento

Blake Fassler
California Certified General Real Estate
Appraiser #3007274
Telephone: 916-435-3883
Email: [email protected]
Kevin Ziegenmeyer, MAI
California Certified General Real Estate
Appraiser #AG013567
Telephone: 916.435.3883, ext. 224
Email: [email protected]

Eric Segal, MAI
California Certified General Real Estate
Appraiser #AG026558
Telephone: 916.435.3883, ext. 228
Email: [email protected]

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Table of Contents
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Executive Summary 1
Identification of the Appraisal Problem 2
Subject Description 2
Sale History 2
Pending Transactions 3
Appraisal Purpose 3
Value Type Definitions 3
Property Rights Definitions 4
Client and Intended User(s) 4
Intended Use 4
Applicable Requirements 4
Report Format 4
Prior Services 5
Appraiser Competency 5
Scope of Work 6
Economic Analysis 8
Placer County Area Analysis 8
Surrounding Area Analysis 17
Residential Market Analysis 21
Property Analysis 29
Land Description and Analysis 29
Improvements Description 41
Real Estate Taxes 45
Highest and Best Use 46
Valuation 48
Valuation Methodology 48
Market Valuation – Floor Plans 49
Residential Lot Valuation 60
Sales Comparison Approach 60
Land Residual Analysis 69
Reconciliation of Lot Value 76
Market Value by Ownership 77
Exposure Time 78
Marketing Time 79
Certification 80
Assumptions and Limiting Conditions 82
Addenda
A. Appraiser Qualifications
B. Definitions
C. Preliminary Title Report
D. Value by Parcel
E. Comparable Data
Land Sales

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Executive Summary 1
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Executive Summary
Property NameAddressProperty TypeOwner of RecordTax IDZoning DesignationHighest and Best UseExposure Time; Marketing Period9-12 months; 9-12 monthsEffective Date of the AppraisalSeptember 1, 2025Date of the ReportOctober 3, 2025Property Interest AppraisedValue ConclusionValue Type & Appraisal Premise Interest Appraised Date of Value Value ConclusionAggregate Appraised Value, subject to a hypothetical condition Fee Simple September 1, 2025 $41,153,000Aggregate, or Cumulative, Assessed Values--$243,343,262Total Aggregate, or Cumulative, Value - City of Lincoln CFD No. 2019-1 (Independence at Lincoln)Fee Simple September 1, 2025 $284,496,262City of Lincoln CFD No. 2019-1 (Independence at Lincoln)The values reported above are subject to the definitions, assumptions, and limiting conditions set forth in the accompanying report of which this summary is a part. No party other than City of Lincoln and its associated finance team may use or rely on the information, opinions, and conclusions contained in the report. It is assumed that the users of the report have read the entire report, including all of the definitions, assumptions, and limiting conditions contained therein.Residential useFee SimplePD-MDR and -LDR, Planned Development - Medium and Low Density ResidentialIndependence AvenueLincoln, Placer County, California 95648Land - Residential Subdivisions*Appraised and Assessed parcels can been seen in the Value by Parcel in the Addenda of the reportTri Pointe Homes Holdings Inc. and Individual Homeowners

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Subject Description 2
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Identification of the Appraisal Problem
Subject Description
The City of Lincoln Community Facilities District No. 2019-1 (Independence at Lincoln) (“CFD No. 2019- 1”) is generally located along the south line of Nicolaus Road, east of Nelson Lane and west of Lakeside Drive, within the city of Lincoln, Placer County, California. CFD No. 2019-1 is comprised of 591 residential lots within six villages (units). The lot sizes within the communities range from 3,015 to 5,000 square feet. Tri Pointe Homes is the only active homebuilder at the subject, as Richmond American Homes and DR Horton have fully sold out of their respective communities. The details of each unit are shown in the following table.

Ownership TableUnitCommunityOwnershipTypical Lot Size (SF)Tax ZoneAssessedAppraisedNo. of LotsUnit 1RevereIndividual Homeowners5,00011211122Unit 2MonumentTri Pointe Homes and Individual Homeowners4,5002227092Unit 3HeartlandsIndividual Homeowners3,375398098Unit 4TraditionsIndividual Homeowners3,015497097Unit 5MonumentTri Pointe Homes and Individual Homeowners4,0005316192Unit 6JubileeTri Pointe Homes and Individual Homeowners3,8006385290Total407184591Total - City of Lincoln CFD No. 2019-1 (Independence at Lincoln) As of the effective date of value, September 1, 2025, the subject consists of a portion of the CFD (taxable parcels) comprising 184 finished lots, homes under construction and completed homes that have not been assigned an assessed value (or nominal value) for structural improvements for the 2025-2026 tax year. The balance of the CFD is 407 homes for which the County has already assigned an assessed value greater than $400,000 for the 2025-2026 tax year. A legal description of the property is provided in the addenda.

Property IdentificationProperty NameCity of Lincoln CFD No. 2019-1 (Independence at Lincoln)AddressIndependence AvenueLincoln, California 95648Tax ID009-360-001 through -047, 009-370-001 through -062, 009-380-001 through -013, 021-910-001 through -092, 009-390-001 through -098, 009-400-001 through -097, 021-890-001 through -054, 021-900-001 through -038 and 021-920-001 through -090Owner of RecordTri Pointe Homes Holdings Inc. and Individual Homeowners Sale History
There are no known bulk lot sales or transfers of ownership taken place within a three-year period prior to the effective appraisal date. There were several bulk lot transfers prior to 2022 from the master developer Lewis Land Developers LLC to each respective homebuilder.

Based on the scope of work for this assignment, a detailed sales history was not performed on a parcel-by-parcel basis for the homes constructed and sold to individual homebuyers. From 715
Pending Transactions 3
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) information provided and the analysis included in this report, it is our understanding prior and pending home sales within the past 12 months were negotiated and transferred at prices consistent with market conditions as of the date of the sale.

Pending Transactions
Based on discussions with the appropriate contacts, the property is not subject to an agreement of sale or an option to buy, nor is it listed for sale, as of the effective appraisal date. However, some individual homes that are under construction are in contract from homebuilder to individual homeowners.

Appraisal Purpose
The purpose of this Appraisal Report is to estimate the market value (fee simple estate), by ownership, and the cumulative, or aggregate value of the appraised properties comprising City of Lincoln CFD No. 2019-1 (Independence at Lincoln), subject to the hypothetical condition certain proceeds from the 2025 Special Tax Bonds will be available to reimburse the master developer for various public improvements, as of the effective date of the appraisal, September 1, 2025. The date of the report is October 3, 2025. The appraisal is valid only as of the stated effective date. The home values are based on a “not-less-than” value for the smallest floor plan in each community with a completed home, without consideration for upgrades and lot premiums. Further, we have excluded any contributory value of unfinished homes, but consider the value of permits and impact fees paid for lots with either construction underway or not yet begun.

Value Type Definitions
The definitions of the value types applicable to this assignment are summarized below.

Market Value
The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

1. Buyer and seller are typically motivated;

2. Both parties are well informed or well advised, and acting in what they consider their own best interests;

3. A reasonable time is allowed for exposure in the open market;

4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and

5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 1

1 Code of Federal Regulations, Title 12, Chapter I, Part 34.42[h]; also, Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77472

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Property Rights Definitions 4
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Assessed Value
The value of a property according to the tax rolls in ad valorem taxation; may be higher or lower than market value, or based on an assessment ratio that is a percentage of market value. 2 Property Rights Definitions
The property rights appraised which are applicable to this assignment are defined as follows.

Fee Simple Estate
Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.3 Client and Intended User(s)
The client is City of Lincoln. The intended users are City of Lincoln and its associated finance team. No party or parties beyond the client and The Finance Team with this proposed issuance may use or rely on the information, opinions, and conclusions contained in this report; however, this appraisal report may be included in the offering document provided in connection with the issuance and sale of the Bonds.

Intended Use
The intended use of the appraisal is for bond underwriting purposes. The appraisal is not intended for any other use.

Applicable Requirements
This appraisal report conforms to the following requirements and regulations:
 Uniform Standards of Professional Appraisal Practice (USPAP);  Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute;  Applicable state appraisal regulations;
 Interagency Appraisal and Evaluation Guidelines issued December 10, 2010;  Appraisal Standards for Land Secured Financing published by the California Debt and Investment Advisory Commission (CDIAC) (2004).

Report Format
Standards Rule 2-2 (Content of a Real Property Appraisal Report) contained in the Uniform Standards of Professional Appraisal Practice (USPAP) requires each written real property appraisal report to be prepared as either an Appraisal Report or a Restricted Appraisal Report. This report is prepared as an Appraisal Report as defined by USPAP under Standards Rule 2-2(a), and incorporates practical explanation of the data, reasoning, and analysis used to develop the opinion of value.

2 Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022) 3 Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022) 717
Prior Services 5
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Prior Services
USPAP requires appraisers to disclose to the client any other services they have provided in connection with the subject property in the prior three years, including valuation, consulting, property management, brokerage, or any other services. We have previously appraised the property that is the subject of this report for the current client. We have provided no other services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding the agreement to perform this assignment.

Appraiser Competency
No steps were necessary to meet the competency provisions established under USPAP. The assignment participants have appraised several properties similar to the subject in physical, locational, and economic characteristics, and are familiar with market conditions and trends; therefore, appraiser competency provisions are satisfied for this assignment. Appraiser qualifications and state credentials are included in the addenda of this report.

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Appraiser Competency 6
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Scope of Work
Introduction
The appraisal development and reporting processes require gathering and analyzing information about the assignment elements necessary to properly identify the appraisal problem. The scope of work decision includes the research and analyses necessary to develop credible assignment results, given the intended use of the appraisal. Sufficient information includes disclosure of research and analyses performed and might also include disclosure of research and analyses not performed.

To determine the appropriate scope of work for the assignment, the intended use of the appraisal, the needs of the user, the complexity of the property, and other pertinent factors were considered. The concluded scope of work is described below.

Research and Analysis
The type and extent of the research and analysis conducted are detailed in individual sections of the report. Although effort has been made to confirm the arms-length nature of each sale with a party to the transaction, it is sometimes necessary to rely on secondary verification from sources deemed reliable.

Subject Property Data Sources
The legal and physical features of the subject property, including size of the site, flood plain data, seismic zone designation, property zoning, existing easements and encumbrances, access and exposure, and condition of the improvements (as applicable) were confirmed and analyzed.

Inspection
Details regarding the property inspection conducted as part of this appraisal assignment are summarized as follows:

Property InspectionPartyInspection TypeInspection DateBlake FasslerOn-siteSeptember 1, 2025Kevin Ziegenmeyer, MAINoneN/AEric Segal, MAINoneN/A Valuation Methodology
Three approaches to value are typically considered when developing a market value opinion for real property. These are the cost approach, the sales comparison approach, and the income capitalization approach. Use of the approaches in this assignment is summarized as follows:
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Appraiser Competency 7
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Approaches to ValueApproachApplicability to SubjectUse in AssignmentCost ApproachNot ApplicableNot UtilizedSales Comparison ApproachApplicableUtilizedIncome Capitalization ApproachApplicableUtilized The valuation began by employing the sales comparison approach to estimate the not-less-than market value for the completed single-family homes, based on the smallest floor plan being marketed within each project with a completed home.

The market value of the residential lots was estimated by utilizing the sales comparison approach and land residual analysis to value. In valuing the subject lots, we selected a benchmark lot category. In the sales comparison approach, adjustments were applied to the prices of comparable bulk lot transactions, and a market value for the benchmark lot category was concluded. Additionally, we utilized a land residual analysis (a variation of the cost approach and income capitalization approaches), in which all direct and indirect costs are deducted from an estimate of the anticipated gross sales price of the improved home product; the resultant net sales proceeds are then discounted to present value at an anticipated discount rate over the development and absorption period to indicate the residual value of the lots. After reconciling the two approaches to value, we apply a lot size adjustment factor to account for differing lot sizes from the benchmark lot category.

The market value estimates for the various taxable land use components described above were then assigned to the various assessor’s parcels comprising the appraised properties in order to derive the cumulative, or aggregate, value of the CFD. Our analysis excluded a typical cost approach since the subject property represents land. However, costs associated with home construction were taken into consideration as part of the land residual analysis and determination of financial feasibility. Given the limited, if any, income producing potential of the land, an income approach was not utilized.

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Placer County Area Analysis 8
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Economic Analysis
Placer County Area Analysis
Placer County is part of the four-county Sacramento Metropolitan Area, along with the counties of Sacramento, Yolo and El Dorado. The county is 1,407 square miles in size and has a population density of 300 persons per square mile. It is located in the north-central part of California, approximately 420 miles north of Los Angeles, 250 miles south of Oregon, 100 miles northeast of San Francisco, 80 miles west of Lake Tahoe and 100 miles southwest of Reno. The southernmost part of Placer County consists of a valley commonly referred to as South Placer, while the remainder of the county is divided into the Gold Country, where parts of Auburn and Colfax are located, and the High Country, which encompasses Tahoe City and Kings Beach along Lake Tahoe. Elevations in the county range from 165 feet above sea level in Roseville to 10,000 feet above sea level in the Sierra Nevada Mountains.

Placer County is developed with a mix of urban and rural uses. Placer’s largest cities are Roseville, Rocklin and Lincoln. The larger cities, namely Roseville and Rocklin, are mostly urban, while the smaller communities, such as Loomis, Newcastle and Colfax, have remained rural. Auburn and Lincoln both exhibit a combination of urban and rural settings. However, in recent years the city of Lincoln has experienced dramatic growth and development and has become one of the fastest-growing cities in California.

Population
Placer County has an estimated 2025 population of 422,203, which represents an average annual 0.8% increase over the 2020 census of 404,739. Placer County added an average of 3,493 residents per year over the 2020-2025 period, and its growth in population contrasts with the State of California which had a 0.3% average annual decrease in population over this time.

Looking forward, Placer County's population is projected to increase at a 0.4% annual rate from 2025- 2030, equivalent to the addition of an average of 1,820 residents per year. Placer County's growth contrasts with California, which is projected to decline at a 0.1% rate.

Population Compound Ann. % Chng2020 Census2025 Estimate2030 Projection2020 - 20252025 - 2030Placer County 404,739 422,203 431,305 0.8% 0.4%California 39,538,223 38,870,482 38,763,700 -0.3% -0.1%Source: ClaritasPopulation Trends

Employment
Total employment in Placer County was estimated at 187,746 jobs as of June 2024. Between year-end 2014 and 2024, employment rose by 43,109 jobs, equivalent to a 29.8% increase over the entire period. There were gains in employment in nine out of the past ten years. Placer County's rate of employment growth over the last decade surpassed that of California, which experienced an increase in employment of 13.1% or 2,103,735 jobs over this period. 721
Placer County Area Analysis 9
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) A comparison of unemployment rates is another way of gauging an area’s economic health. Over the past decade, the Placer County unemployment rate has been consistently lower than that of California, with an average unemployment rate of 4.5% in comparison to a 5.9% rate for California.

Recent data shows that the Placer County unemployment rate is 4.0% in comparison to a 5.2% rate for California, a positive sign that is consistent with the fact that Placer County has outperformed California in the rate of job growth over the past two years.

Employment TrendsTotal Employment (Year End) Unemployment Rate (Ann. Avg.)YearPlacer County% ChangeCalifornia% ChangePlacer CountyCalifornia2014 144,637 16,089,814 6.3% 7.6%2015 151,854 5.0% 16,606,038 3.2% 5.1% 6.3%2016 157,499 3.7% 16,930,563 2.0% 4.5% 5.5%2017 164,379 4.4% 17,263,084 2.0% 3.9% 4.8%2018 170,473 3.7% 17,573,378 1.8% 3.2% 4.3%2019 174,216 2.2% 17,857,719 1.6% 3.1% 4.1%2020 163,680 -6.0% 16,401,290 -8.2% 7.5% 10.2%2021 177,646 8.5% 17,641,250 7.6% 5.1% 7.3%2022 181,852 2.4% 18,066,913 2.4% 3.1% 4.3%2023 184,700 1.6% 18,146,497 0.4% 3.7% 4.8%2024* 187,746 1.6% 18,193,549 0.3% 4.2% 5.4%Overall Change 2014-2024 43,109 29.8% 2,103,735 13.1%Avg Unemp. Rate 2014-2024 4.5% 5.9%Unemployment Rate - December 2024 4.0% 5.2%Source: U.S. Bureau of Labor Statistics and Moody's Analytics. Employment figures are from the Quarterly Census of Employment and Wages (QCEW). Unemployment rates are from the Current Population Survey (CPS). The figures are not seasonally adjusted.*Total employment data is as of June 2024.

Employment Sectors
The composition of the Placer County job market is depicted in the following chart, along with that of California. Total employment for both areas is broken down by major employment sector, and the sectors are ranked from largest to smallest based on the percentage of Placer County jobs in each category.
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Placer County Area Analysis 10
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Employment Sectors - 202419.1%16.4%14.4%12.0%11.9%10.7%6.5%3.9%3.8%1.0%0.2%17.2%16.6%11.2%14.7%15.2%5.1%4.4%3.2%6.9%2.9%2.6%0% 5% 10% 15% 20% 25%Education and Health ServicesTrade; Transportation; and UtilitiesLeisure and HospitalityGovernmentProfessional and Business ServicesConstructionFinancial ActivitiesOther ServicesManufacturingInformationNatural Resources & MiningPlacer CountyCaliforniaSource: U.S. Bureau of Labor Statistics and Moody's Analytics

Placer County has greater concentrations than California in the following employment sectors:

1. Education and Health Services, representing 19.1% of Placer County payroll employment compared to 17.2% for California as a whole. This sector includes employment in public and private schools, colleges, hospitals, and social service agencies.

2. Leisure and Hospitality, representing 14.4% of Placer County payroll employment compared to

11.2% for California as a whole. This sector includes employment in hotels, restaurants, recreation facilities, and arts and cultural institutions.

3. Construction, representing 10.7% of Placer County payroll employment compared to 5.1% for California as a whole. This sector includes construction of buildings, roads, and utility systems.

4. Financial Activities, representing 6.5% of Placer County payroll employment compared to 4.4% for California as a whole. Banking, insurance, and investment firms are included in this sector, as are real estate owners, managers, and brokers.

Placer County is underrepresented in the following sectors:

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Placer County Area Analysis 11
City of Lincoln CFD No. 2019-1 (Independence at Lincoln)

1. Trade; Transportation; and Utilities, representing 16.4% of Placer County payroll employment compared to 16.6% for California as a whole. This sector includes jobs in retail trade, wholesale trade, trucking, warehousing, and electric, gas, and water utilities.

2. Government, representing 12.0% of Placer County payroll employment compared to 14.7% for California as a whole. This sector includes employment in local, state, and federal government agencies.

3. Professional and Business Services, representing 11.9% of Placer County payroll employment compared to 15.2% for California as a whole. This sector includes legal, accounting, and engineering firms, as well as management of holding companies.

4. Manufacturing, representing 3.8% of Placer County payroll employment compared to 6.9% for California as a whole. This sector includes all establishments engaged in the manufacturing of durable and nondurable goods.

Major Employers
Major employers in Placer County are shown in the following table.

NameNumber of Employees1Sutter Health6,6722Kaiser Permanente - Roseville6,0943 Placer County 2,6694 Thunder Valley Casino Resort 2,4005 Sierra Joint Community College District 1,9006 Roseville City School District 1,7837 City of Roseville 1,3868 Palisades Tahoe 1,3219 Safeway 1,21710 Pacific Gas & Electric Co 1,120Major Employers - Placer CountySource: Sacramento Business Journal, The List: Employers - Placer County, July 5, 2024

Gross Domestic Product
Gross Domestic Product (GDP) is a measure of economic activity based on the total value of goods and services produced in a defined geographic area, and annual changes in Gross Domestic Product (GDP) are a gauge of economic growth.

Economic growth, as measured by annual changes in GDP, has been somewhat higher in Placer County than California overall during the past decade. Placer County has grown at a 3.7% average annual rate while the State of California has grown at a 3.3% rate. However, Placer County has recently underperformed California. GDP for Placer County rose by 1.4% in 2023 while California's GDP rose by

2.0%.

Placer County has a per capita GDP of $63,799, which is 24% less than California's GDP of $83,373. This means that Placer County industries and employers are adding relatively less value to the economy than their counterparts in California.
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Placer County Area Analysis 12
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Gross Domestic ProductYear($,000s)Placer County% Change($,000s)California% Change2013 18,730,154 – 2,340,335,300 –2014 19,256,016 2.8% 2,428,675,700 3.8%2015 20,477,469 6.3% 2,545,979,500 4.8%2016 21,401,555 4.5% 2,623,711,700 3.1%2017 21,945,008 2.5% 2,740,550,300 4.5%2018 23,346,285 6.4% 2,850,970,300 4.0%2019 23,942,196 2.6% 2,969,609,000 4.2%2020 23,905,563 -0.2% 2,933,320,200 -1.2%2021 26,026,237 8.9% 3,154,188,600 7.5%2022 26,650,663 2.4% 3,184,007,800 0.9%2023 27,022,666 1.4% 3,248,656,600 2.0%Compound % Chg (2013-2023) 3.7% 3.3%GDP Per Capita 2023 $63,799 $83,373Source: U.S. Bureau of Economic Analysis and Moody's Analytics; data released December 2024.The release of state and local GDP data has a longer lag time than national data. The data represents inflation-adjusted "real" GDP stated in 2017 dollars.

Household Income
Placer County is more affluent than California. Median household income for Placer County is $112,036, which is 18.2% greater than the corresponding figure for California.

MedianPlacer County $112,036California $94,758Comparison of Placer County to California + 18.2%Source: ClaritasMedian Household Income - 2025

The following chart shows the distribution of households across twelve income levels. Placer County has a greater concentration of households in the higher income levels than California. Specifically, 36% of Placer County households are at the $150,000 or greater levels in household income as compared to 30% of California households. A lesser concentration of households is apparent in the lower income levels, as 21% of Placer County households are below the $50,000 level in household income versus 27% of California households.
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Placer County Area Analysis 13
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Household Income Distribution - 20257.6%5.5%5.7%8.5%13.3%11.7%9.9%7.8%10.5%5.4%7.7%6.3%4.6%4.6%4.9%6.8%12.0%11.9%10.4%8.3%13.1%7.0%9.5%6.8%0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%Less than $15,000$15,000 - $24,999$25,000 - $34,999$35,000 - $49,999$50,000 - $74,999$75,000 - $99,999$100,000 - $124,999$125,000 - $149,999$150,000 - $199,999$200,000 - $249,999$250,000 - 499,999$500,000 and morePlacer CountyCaliforniaSource: Claritas

Education
Residents of Placer County have a higher level of educational attainment than those of California. An estimated 42% of Placer County residents are college graduates with four-year degrees, versus 37% of California residents.

Education - 2025Source: Claritas
10%20%30%40%50%60%70%80%Placer County California42%37%Percent College Graduate

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Placer County Area Analysis 14
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Transportation
Interstate 80, State Highway 65 and State Highway 193 are the major routes traversing Placer County.

Major urban arterials in the southern part of the county include Douglas Boulevard, Roseville Parkway, Pleasant Grove Boulevard, Foothills Boulevard, Sunrise Avenue, Auburn-Folsom Road, Sierra College Boulevard, Sunset Boulevard, Rocklin Road and Stanford Ranch Road.

In addition to roadways within the county limits, South Placer County enjoys proximity to many of the Sacramento region’s freeways that provide access to the San Francisco Bay Area to the west, Central and Southern California to the south, Northern California and Oregon to the north, and Nevada to the east. Sacramento International Airport is situated about 10 miles west of the county border. The county is also home to a couple of small private airports. The region has good railroad service, including the transcontinental Union Pacific Railroad and Amtrak. The Capitol Corridor system provides high-speed commuter rail service from Roseville to San Jose and Placer County Transit provides seven fixed routes servicing areas from Colfax down to Watt Avenue in Sacramento.

Recreation & Community Services
Placer County has ample community services and recreational opportunities. The County, cities and various park districts operate numerous public parks, golf courses, aquatic centers, libraries and community centers. Many private golf courses are located in the region, and several ski resorts are located in the mountains. Within the county lies a portion of the Folsom Lake State Recreation Area, a boating, fishing, and swimming retreat.

In terms of higher education, Placer County is home to Sierra College in Rocklin, a two-year community college offering a wide range of day and evening classes serving over 25,000 students.

Sierra College also has an extension campus located in the Vernon District in Roseville and two additional campuses – the Nevada County and Tahoe-Truckee campuses. In 2004, William Jessup University, a private Christian college, moved from San Jose to a new facility in Rocklin. Additional university campuses within the county include Brandman University, National University and University of Phoenix, all located in Roseville.

The region offers good health services, including hospitals and medical office facilities. Two hospitals are located in Roseville – the Sutter Roseville Medical Center and Kaiser Permanente. In addition to the hospital, construction was completed at the end of 2019 for a new state-of-the-art, 194,000 square foot Kaiser Permanente medical campus to replace their existing campus on Riverside Avenue.

The city of Auburn is home to Sutter Auburn Faith Hospital, Sutter Medical Center-Auburn, UC Davis Medical Center, Foundation Medical Clinic and Heritage Medical Center Complex. The city of Lincoln contains medical offices/clinics operated by Sutter, UC Davis, Kaiser and Catholic Healthcare West. In addition to these institutional health care facilities, the county is home to a large and growing number of private physicians, dentists, clinics and other medical specialists.

The city of Roseville is South Placer’s hub for fine dining and entertainment. Several upscale restaurants are situated along Eureka Road, Roseville Parkway and Galleria Boulevard. Roseville and Rocklin both offer two multi-screen movie theatres, and Auburn has one theatre. Shopping centers are widespread, the largest of which are the Galleria at Roseville, a regional shopping mall that opened in 2000 and was expanded in 2008-2009, and the Fountains at Roseville, an outdoor lifestyle center that opened in June 2008.
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City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Conclusion
Placer County encompasses a diverse area, with growing cities, small towns and rural areas, and an abundance of open space. The cities of Roseville, Rocklin and Lincoln have experienced strong growth in population and development over the past several years. Placer County is one of the most affluent in the greater Sacramento region in terms of household income levels. The area has a number of positive attributes, including seismic stability, a well-educated work force, good transportation systems, relative affordability and availability of housing compared to the Bay Area, and an excellent level of community services.

The Placer County economy will benefit from a stable to slightly growing population base and higher income and education levels. Placer County experienced growth in the number of jobs and has maintained a consistently lower unemployment rate than California over the past decade. It is anticipated that the Placer County economy will improve and employment will grow, strengthening the demand for real estate.
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Placer County Area Analysis 16
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Area Map

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Surrounding Area Analysis 17
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Surrounding Area Analysis
Location
The subject property is located within the city of Lincoln, in Placer County. The subject’s neighborhood boundaries can generally be defined as the Lincoln city limits to the north and south, State Highway 65 to the east and Aviation Boulevard/Nelson Lane to the west. The subject property is located within the Lincoln submarket area.

The subject’s immediate neighborhood contains mostly single-family residential development, with retail and office development nearby. The Lincoln area has experienced significant urbanization over the past several years. Increased residential development has led to the expanded construction of retail, office, and industrial properties.

Access and Linkages
The subject property has access from Nicolaus Road, less than a mile west of Joiner Parkway, which represents a north-south, four-lane neighborhood thoroughfare through the city of Lincoln and connecting to the neighboring city of Rocklin to the south. It also provides access to State Highway 65 to the south via Ferrari Ranch Road and Lincoln Boulevard. State Highway 65 can also be accessed via Nelson Lane to the west of the subject. State Highway 65 is a north-south freeway that extends through Downtown Lincoln, Wheatland and the Marysville/Yuba City area to the north. To the south, State Highway 65 intersects with Interstate 80, a major east-west freeway that provides access to the Sacramento Central Business District, before continuing on to Davis, Vacaville, Fairfield and the San Francisco Bay Area. Approximately 80 miles to the east, Interstate 80 provides access to Reno, Nevada. Commute time from Lincoln to the Sacramento Central Business District is estimated at 30 to 45 minutes.

Demographics
A demographic profile of the surrounding area, including population, households, and income data, is presented in the following table.
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Surrounding Area Analysis 18
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Surrounding Area Demographics2025 Estimates3-Mile Radius5-Mile Radius10-Mile Radius95648 (Lincoln, CA)Placer County, CAPopulation 2020 33,993 51,723 241,530 54,402 404,739Population 2025 35,910 55,113 259,644 58,630 422,203Population 2030 37,377 57,481 269,360 61,049 431,305Compound % Change 2020-2025 1.1% 1.3% 1.5% 1.5% 0.8%Compound % Change 2025-2030 0.8% 0.8% 0.7% 0.8% 0.4%Households 2020 11,411 19,468 87,954 20,556 152,101Households 2025 11,962 20,467 93,744 21,869 158,079Households 2030 12,431 21,229 96,989 22,666 161,327Compound % Change 2020-2025 0.9% 1.0% 1.3% 1.2% 0.8%Compound % Change 2025-2030 0.8% 0.7% 0.7% 0.7% 0.4%Median Household Income 2025 $105,087 $103,981 $116,625 $105,405 $112,036Average Household Size 3.0 2.7 2.8 2.7 2.6College Graduate % 30% 35% 43% 36% 42%Owner Occupied % 76% 80% 73% 82% 72%Renter Occupied % 24% 20% 27% 18% 28%Median Owner Occupied Housing Value $625,997 $672,024 $699,217 $685,724 $711,487Median Year Structure Built 2003 2004 2001 2004 1994Average Travel Time to Work in Minutes 30 30 30 31 29Source: Claritas As shown above, the current population within a 5-mile radius of the subject is 55,113, and the average household size is 2.7. Population in the area has grown since the 2020 census, and this trend is projected to continue over the next five years. Compared to Placer County overall, the population within a 5-mile radius is projected to grow at a faster rate.

Median household income is $103,981, which is lower than the household income for Placer County.

Residents within a 5-mile radius have a similar level of educational attainment to those of Placer County, while median owner-occupied home values are lower.

Land Use
Most of the land uses in Lincoln are residential, with supporting commercial, industrial, and community uses. Generally, older construction is situated at the core of the city, and new construction is concentrated in the southern and western parts of the city. Thousands of new homes have been built in the past decade in southern Lincoln, in the master-planned communities of Lincoln Crossing, Sun City Lincoln Hills (age-restricted community), and Twelve Bridges.

Originally, most commercial development in the city of Lincoln was concentrated in the Downtown area, situated along both sides of State Highway 65/G Street between First and Ninth Streets. This area is characterized by a variety of brick, wood-frame and corrugated metal structures. Land uses in the Downtown area include commercial, public, industrial, service, and residential uses. This area also contains City Hall and municipal offices. Some older buildings in the Downtown area have recently been renovated and/or converted to new uses.

The subject is located in an area primarily of single-family residential development with a large amount of vacant land, planned for a mix of commercial and additional residential development.

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Surrounding Area Analysis 19
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) The bulk of the commercial development within the Lincoln area is located southeast of subject, along Lincoln Boulevard. Specifically, the Sterling Pointe Shopping Center, located at southeast quadrant of Joiner Parkway and Lincoln Boulevard, and represents a 144,000 square foot retail center anchored by a Raley’s supermarket. This center has several strip retail buildings as well as freestanding buildings, occupied by tenants such as Wells Fargo Bank, Chase Bank, Bank of America, KFC/A&W, and Taco Bell.

Tenants of the strip retail buildings include Sterling Café, California Sun Centers, Baskin Robbins, a dental office, Ninja Sushi, Casa Ramos, and Jamba Juice. The Villages at Sterling Pointe, located just south of this center, includes shops, restaurants and professional office buildings, and will total approximately 179,800 square feet at completion. Other tenants of the Villages at Sterling Pointe include Schools Financial Credit Union, BBVA Compass, Lincoln Medical Supply, Fantastic Sam’s, and Century 21 Real Estate, to name a few.

North of the Villages at Sterling Pointe, is a 21-acre, retail project identified as Parkway Plaza. This center is anchored by Lowe’s and includes additional tenants such as McDonalds, Red Robin Gourmet Burger, Big 5 Sporting Goods, and Dollar Tree. Across State Highway 65, at Ferrari Ranch Road and Joiner Parkway, Home Depot opened for business in October 2005. The Home Depot is part of the Lincoln Crossing Marketplace, a 368,615 square-foot retail center that also features several big-box retailers such as Target, T.J. Maxx, Ross, and Petsmart. Other occupants of this power center include Starbucks, Philly Nail & Spa, GNC, Kobe, Panda Express, Carl’s Jr., O’Reilly Auto Parts, and Holiday Inn.

Additionally, In-N-Out is also located at the corner of Ferrari Ranch Road and Groveland Lane.

Just south of the Lincoln city limits (south of the subject property) is Thunder Valley Casino, located along Athens Avenue at Industrial Avenue. This gaming facility opened in 2003 and offers slot machines, table games, and restaurants. An expansion of the casino, which included the development of a multi-story hotel tower and event theatre, was completed in July 2010.

Community Uses
The neighborhood is served by various community uses including schools, parks, religious facilities, libraries, and golf courses. Foskett Regional Park is located less than one-mile northwest of the subject property along Joiner Parkway. This 42-acre park includes a four-diamond lighted softball complex, four lighted soccer fields, concessions, pedestrian and bike path and three different children’s play equipment areas. Lincoln Hills Golf Course is located southeast of the subject property within the Sun City development, and Catta Verdera Country Club is further south. Turkey Creek Golf Course is located just northeast of the city limits, along State Highway 193. Just west of the subject is the Lincoln Regional Airport, which accommodates a wide scope of private, corporate and executive aircraft.

Outlook and Conclusions
The subject is located within a balanced neighborhood developed primarily with residential and limited commercial uses in the immediate area. The Lincoln area experienced rapid growth over the last expansionary period. The subject property benefits from good transportation characteristics, including good freeway access and its location along a major neighborhood thoroughfare. The characteristics of the subject neighborhood relative to other locales in the region are average, and demand for residential development is projected over the long term. 732
Surrounding Area Analysis 20
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Surrounding Area Map

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Residential Market Analysis 21
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Residential Market Analysis
Given prevailing land use patterns and the subject’s zoning, a likely use of the property is for residential development. In the following paragraphs, we examine supply and demand indicators for residential development in the subject’s area.

Homebuilders are seeing the signs of slowing pace of sales nationally; however, California has been a bright spot for many national homebuilders. Orange County as well as Sacramento region have been the best performing areas in California. Specifically, south Placer County has been the best performing area in the region as home prices and absorption have remained steady.

Submarket Overview
The subject is located in the city of Lincoln. The subject is adjacent to newer home construction and planned future development and is considered to have good transportation linkages. The neighborhood is characterized as a suburban area that appeals to both local workers and commuters.

Based on existing surrounding homes and new projects under development, the subject characteristics best support a project designed for a combination of entry-level and/or first-time move-up home buyers.

Single-Family Building Permits
Single-family building permits for the city of Lincoln as well as Placer County totals are shown in the following table. When we compare the trend in permitting, population and price, there can be a relationship. More supply of homes could eventually mean lower prices, whereas conversely a lower number of permits pulled could eventually mean higher prices. Further, the number of permits pulled shows builder confidence in the current market when compared to other years.

Single-Family Building PermitsYearCity of Lincoln% ChangeCounty of Placer% Change2015233--1,996--2016217-6.87%2,1075.56%2017181-16.59%2,50018.65%201892-49.17%1,881-24.76%2019260182.61%2,0458.72%2020546110.00%2,62728.46%20211,01686.08%4,07355.04%2022826-18.70%3,506-13.92%2023627-24.09%2,852-18.65%2024585-6.70%2,828-0.84%Source: SOCDS Building Permits Monthly Request 734
Residential Market Analysis 22
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Single-Family Building Permits: 2025 Preliminary DataMonthCity of LincolnCounty of PlacerJanuary17166February18215March27243April59252May47167June36236Total2041,279Source: SOCDS Building Permits Monthly Request New Home Pricing and Sales
The Gregory Group surveys active new home projects in California and Nevada. Below we present a table containing indicators for active single-family residential projects in Placer County for the past three years. The data include both attached and detached projects, but the vast majority of units are detached homes.

New Home Sales HistoryQuarterAverage Price% Change Average PriceAverage Home Size (SF)Avg. Price / Avg. SF% Change Price / SFQuarter SoldNumber of ProjectsSold per Project per Month1Q 2023$736,396--2,452$300.32 --778783.322Q 2023$755,8232.64%2,470$306.00 1.89%683763.003Q 2023$773,5932.35%2,508$308.45 0.80%732783.134Q 2023$766,227-0.95%2,454$312.24 1.23%378711.771Q 2024$792,7923.47%2,511$315.73 1.12%719783.072Q 2024$805,0691.55%2,509$320.87 1.63%617762.713Q 2024$803,843-0.15%2,478$324.39 1.10%481722.234Q 2024$800,134-0.46%2,440$327.92 1.09%451682.211Q 2025$799,155-0.12%2,444$326.99 -0.29%580692.802Q 2025$806,9450.97%2,497$323.17 -1.17%447722.07Source: The Gregory Group In terms of the number of home sales in Placer County, over the last 12 months, the average was 2.33 sales per month per project, which was slightly down from the average for the prior 12-month period of 2.67 sales per month per project.

Active New Home Projects Pricing and Absorption
There are 21 active projects in the market areas of Lincoln. These projects are considered to be most competitive with the subject property given their locations and lot sizes. These projects are summarized in the tables on the following page, based on data from the Second Quarter of 2025. 735
Residential Market Analysis 23
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Active Projects (as of 2Q 2025)Project NameMaster PlanCommunityAge RestrictedDeveloperAverage PriceAvg. Home Size (SF)Average Price/SFTypical Lot Size (SF)Units PlannedUnits OfferedUnits SoldUnits UnsoldAurora HeightsTwelve BridgesLincolnNoKB Home$457,977 1,612$284.10 1,85522481774Copper RidgeNoLincolnNoKB Home$655,776 2,035$322.25 5,5002811481435Esplanade -- ClassicTurkey CreekLincolnYesTaylor Morrison Homes$607,666 1,792$339.10 5,5002461531485Esplanade -- CottagesTurkey CreekLincolnYesTaylor Morrison Homes$517,666 1,529$338.57 4,50018196933Esplanade -- EstatesTurkey CreekLincolnYesTaylor Morrison Homes$843,999 2,747$307.24 7,0001751321275Esplanade -- PremierTurkey CreekLincolnYesTaylor Morrison Homes$689,666 2,262$304.89 6,0002631501446Freedom 40 CollectionBickford RanchLincolnYesShea Homes$523,499 1,535$341.04 5,000144231013Freedom 45 CollectionBickford RanchLincolnYesShea Homes$653,666 2,041$320.27 5,50031223815Freedom 50 CollectionBickford RanchLincolnYesShea Homes$721,999 2,236$322.90 6,82511018108Freedom 60 CollectionBickford RanchLincolnYesShea Homes$956,999 2,698$354.71 7,3509336279HavenwoodNoLincolnNoCresleigh Homes$734,750 2,809$261.57 6,6008380719JasperNoneLincolnNoD.R. Horton Homes$583,490 1,836$317.81 5,500198404JubileeIndependenceLincolnNoTri Pointe Homes$599,902 1,934$310.19 3,6009045396Magnolia VillageNoLincolnNoWilliams Homes$419,433 1,604$261.49 Attached3222157MillauTwelve BridgesLincolnNoCentury Communities$575,323 1,934$297.48 2,60010548399MonumentIndependenceLincolnNoTri Pointe Homes$650,258 2,570$253.02 4,00015934268MountaingateBickford RanchLincolnNoTri Pointe Homes$862,713 3,264$264.31 4,500651367RialtoTwelve BridgesLincolnNoCentury Communities$587,495 2,022$290.55 2,8607942393RidgelineBickford RanchLincolnNoToll Brothers$1,135,245 3,625$313.17 8,250103563422Turkey Creek EstatesTurkey CreekLincolnNoElliott Homes$1,048,750 3,046$344.30 9,7502401129814VelareTwelve BridgesLincolnNoLGI Homes$534,400 1,550$344.77 2,2751591301255Minimum$419,433 1,529$253.02 1,855Maximum$1,135,245 3,625$354.71 9,750Average$683,842 2,223$309.23 5,248Source: The Gregory Group AbsorptionProject NameMaster PlanCommunityAge RestrictedDeveloperAvg. Home Price (2Q 2025 Only)Avg. Home Size (2Q 2025 Only)Typical Lot Size (SF)2Q 20251Q 20254Q 20243Q 202412-Month TotalAverage per QuarterAverage per MonthAurora HeightsTwelve BridgesLincolnNoKB Home$457,977 1,6121,85516131184812.04.0Copper RidgeNoLincolnNoKB Home$655,776 2,0355,50002-1561.50.5Esplanade -- ClassicTurkey CreekLincolnYesTaylor Morrison Homes$607,666 1,7925,500413514369.03.0Esplanade -- CottagesTurkey CreekLincolnYesTaylor Morrison Homes$517,666 1,5294,50084511287.02.3Esplanade -- EstatesTurkey CreekLincolnYesTaylor Morrison Homes$843,999 2,7477,0003957246.02.0Esplanade -- PremierTurkey CreekLincolnYesTaylor Morrison Homes$689,666 2,2626,000214712358.82.9Freedom 40 CollectionBickford RanchLincolnYesShea Homes$523,499 1,5355,000302-141.00.3Freedom 45 CollectionBickford RanchLincolnYesShea Homes$653,666 2,0415,5002-10-100.00.0Freedom 50 CollectionBickford RanchLincolnYesShea Homes$721,999 2,2366,825111251.30.4Freedom 60 CollectionBickford RanchLincolnYesShea Homes$956,999 2,6987,3506405153.81.3HavenwoodNoLincolnNoCresleigh Homes$734,750 2,8096,6006605174.31.4JasperNoneLincolnNoD.R. Horton Homes$583,490 1,8365,5000---00.00.0JubileeIndependenceLincolnNoTri Pointe Homes$599,902 1,9343,6008868307.52.5Magnolia VillageNoLincolnNoWilliams Homes$419,433 1,604Attached645-155.01.7MillauTwelve BridgesLincolnNoCentury Communities$575,323 1,9342,600101067338.32.8MonumentIndependenceLincolnNoTri Pointe Homes$650,258 2,5704,0003665205.01.7MountaingateBickford RanchLincolnNoTri Pointe Homes$862,713 3,2644,500230161.50.5RialtoTwelve BridgesLincolnNoCentury Communities$587,495 2,0222,860111165338.32.8RidgelineBickford RanchLincolnNoToll Brothers$1,135,245 3,6258,25013867348.52.8Turkey Creek EstatesTurkey CreekLincolnNoElliott Homes$1,048,750 3,0469,7504059184.51.5VelareTwelve BridgesLincolnNoLGI Homes$534,400 1,5502,275151621-5217.35.812313196109212020185.96.64.86.12.02.21.62.01.9Average Monthly Pro-RataMonthly Pro-RataSource: The Gregory GroupTotalNo. of Active ProjectsQuarterly Pro-Rata

Copper Ridge and Jasper are considered to be most similar to the subject; however, Copper Ridge has a lower absorption rate compared to the other projects in the region because the project is nearing selling out and absorption typically slows as the project sells out. Jasper has just begun selling homes at the very end of the second quarter. Historical trends for these two communities as well as the subject communities, are further detailed in the following tables.

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Residential Market Analysis 24
City of Lincoln CFD No. 2019-1 (Independence at Lincoln)

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Residential Market Analysis 25
City of Lincoln CFD No. 2019-1 (Independence at Lincoln)

Resale Pricing
The following table shows historical resale data for more recently built homes (2020 and newer) in the city of Lincoln. We restricted our search to lot sizes with less than 10,000 square feet. The resale market is analyzed as a further gauge of buyer demand for housing. Often home buyers are considering housing purchase options that cover both the new home market, as well as the resale market.
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Residential Market Analysis 26
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) ResalesAddressSale DateLiving Area (SF)Sale PriceLast List PriceSales Price/SFSale/ListYear BuiltDays on MarketLot Size (SF)1466 Avila Ln1/28/20252,698$670,000$670,000$248100.00%2021685,401242 Martos Ct2/14/20252,188$645,000$650,000$29599.23%20221175,201108 Tortosa Ct1/2/20252,768$700,000$707,000$25399.01%2022496,978613 O St2/3/20252,580$643,000$654,000$24998.32%2020757,501656 Franklin St4/4/20252,161$619,900$619,900$287100.00%2022815,0571439 Sanders St2/19/20252,020$595,000$579,900$295102.60%2023603,960721 Lincolnshire Cir1/28/20252,237$555,000$569,000$24897.54%2020263,4122132 3rd St2/24/20252,207$775,000$795,000$35197.48%2024448,5161299 Tucker Swallow Dr2/28/20251,862$613,456$598,227$329102.55%2024397,222696 Riley Way6/26/20252,266$830,000$849,000$36697.76%20211586,1591318 Donner Ln3/7/20251,408$585,000$580,000$415100.86%2024344,073782 Havenwood Dr4/1/20252,627$768,689$768,689$293100.00%2024626,600892 Lincolnshire Cir3/28/20251,630$520,000$515,000$319100.97%2020442,9192962 Lindbergh Ln2/3/20251,928$574,900$574,900$298100.00%202154,0421342 Donner Ln5/6/20251,651$549,900$549,900$333100.00%2024904,225673 Lincolnshire Cir3/24/20251,853$500,000$510,000$27098.04%2020263,476758 Papermill Rd3/7/20252,183$650,000$625,000$298104.00%202054,334573 Papermill Rd3/31/20252,473$657,000$659,000$26699.70%2021414,848101 toledo3/5/20252,376$699,000$699,000$294100.00%202276,9962914 Lindbergh Ln3/26/20251,570$565,000$565,000$360100.00%2021353,9511185 Shea Falls Dr4/11/20252,622$710,000$719,900$27198.62%2024276,0901375 Carson River Loop5/8/20251,651$549,999$549,999$333100.00%2024414,643520 Lodge Ct6/4/20252,985$1,230,000$1,255,000$41298.01%2021719,357671 Independence Ave4/3/20252,409$689,000$689,000$286100.00%2022274,495880 Lincolnshire4/21/20251,853$540,000$525,500$291102.76%2020102,993410 Confederation Ct4/1/20252,127$760,000$750,000$357101.33%202266,909601 Tower Ct6/17/20252,321$715,000$710,000$308100.70%2022237,231579 Bartonville Rd4/10/20252,111$635,000$650,000$30197.69%2020124,0821129 Amelia Way4/10/20252,145$635,000$635,000$296100.00%202366,8873051 Ridgecrest Dr4/29/20252,321$705,000$710,000$30499.30%2021195,5322161 Hunter Creek Dr5/15/20252,050$641,499$634,900$313101.04%202476,451557 Blair Bridge Rd6/3/20251,953$650,000$650,000$333100.00%202095,018108 Le Bourget Cir4/30/20251,252$525,000$518,000$419101.35%202123,6811524 Citrus St5/29/20251,630$515,000$515,000$316100.00%202112,8121159 Kanon Clover Way4/30/20251,862$625,000$610,000$336102.46%202356,329412 Confederation Ct7/18/20252,783$880,000$889,000$31698.99%2022747,5402166 Hunter Creek Dr7/29/20251,862$571,031$569,900$307100.20%2024456,090303 Amelia Ct7/18/20253,312$720,000$740,000$21797.30%2023726,8352948 Fontana Dr6/5/20254,017$1,230,000$1,269,000$30696.93%2020299,156841 Lincolnshire Cir7/8/20252,118$539,888$539,888$255100.00%2020383,5373066 Anastasia Way6/9/20253,030$1,200,000$1,225,000$39697.96%202179,579570 Chiselville Ln6/18/20252,527$668,250$675,000$26499.00%202145,009123 Seatac Ct6/5/20251,832$648,000$640,000$354101.25%202099,0781687 Carson River Loop6/20/20251,529$575,000$579,000$37699.31%2022154,0033087 Ridgecrest Dr5/23/20251,820$661,000$669,000$36398.80%202135,5321337 Esplanade Ln7/3/20252,157$775,000$799,900$35996.89%2022197,240504 Kadel Ct7/11/20251,910$587,000$575,000$307102.09%2021216,599880 Lodge Way7/9/20252,528$1,024,000$1,024,900$40599.91%202388,8513233 America Dr7/15/20251,811$555,000$569,900$30697.39%2021293,554708 Chiselville Ln8/8/20251,606$610,000$610,000$380100.00%202084,7922944 Romano Dr8/8/20252,543$1,041,000$1,000,000$409104.10%202069,583Total Sales512,184$688,755$690,908$31999.83%2022345,772(avg.)(avg.)(avg.)(avg.)(avg.)(avg.)(avg.)(avg.)Source: Local Multiple Listing Service (MLS) 739
Residential Market Analysis 27
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Ability to Pay
In this section, we will examine the ability to pay among prospective buyers for an estimated average home with a representative price point of $560,000 on Unit 2, based on the indicators from the competing projects. First, we will estimate the required annual household income based on typical mortgage parameters in the subject’s market area. Specifically, we will employ a loan-to-value ratio of 80% (down payment of 20%), mortgage interest rate of 6.50%, 360 monthly payments, and a 40% ratio for the housing costs as a percent of monthly income (inclusive of principal, interest, all taxes and insurance). Property tax payments are accounted for in the analysis as well as homeowner’s insurance. The following table shows the estimate of the annual household income that would be required to afford homes priced at the representative price point.

Income RequiredHome Price$560,000 Loan % of Price (Loan to Value)80%Loan Amount$448,000 Interest Rate6.50%Mortgage Payment$2,832 Property Taxes$613 Based on1.040201%and direct charges of $1,525City of Lincoln CFD No. 2019-1 (Independence at Lincoln)$266 Property Insurance$117 Total Monthly Obligation$3,827 Mortgage Payment % of Income40%Monthly Income$9,568 Annual Income$114,811 We have obtained income data from Claritas Spotlight by Environics Analytics, for a 10-mile radius surrounding the subject property, which is considered representative of typical buyers for the subject property. In the following table we show the income brackets within the noted area, along with estimates of the percentage of households able to afford homes priced at the representative price point within each income bracket.

Household AbilityHousehold IncomeHouseholdsPercent of HouseholdsPercent Able to PayHouseholdsHouseholds Able to Pay< $15,0008,4125.9%0.0%00.0%$15,000 - $24,9996,3254.5%0.0%00.0%$25,000 - $34,9996,3104.5%0.0%00.0%$35,000 - $49,99910,7627.6%0.0%00.0%$50,000 - $74,99919,54213.8%0.0%00.0%$75,000 - $99,99917,75112.5%0.0%00.0%$100,000 - $124,99915,75511.1%40.8%6,4214.5%$125,000 - $149,99912,9469.1%100.0%12,9469.1%$150,000 - $199,99917,08412.1%100.0%17,08412.1%$200,000 - $249,9999,9947.1%100.0%9,9947.1%$250,000 - $499,99910,6687.5%100.0%10,6687.5%$500,000+6,1094.3%100.0%6,1094.3%141,658100.0%63,22244.6% 740
Residential Market Analysis 28
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Conclusions
Demand for homes in the subject’s market area is considered to be dynamic at the current time as indicated by the overall trend of building permit activity, new home sales prices and activity in recent quarters as well as the absorption rate within new home projects in the subject’s area. Current interest rates for new home loans continues to challenge the new home buyers and Builders. Builders are adjusting continuously their sales programs and incentive offerings to either maintain or add momentum to their sales pace. The predominate expectation from knowledgeable market participants is that market conditions will be steady over the near term. 741
Land Description and Analysis 29
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Property Analysis
Land Description and Analysis
Location and Project Details
The subject is generally located along the south line of Nicolaus Road, east of Nelson Lane and west of Lakeside Drive, within the city of Lincoln, Placer County, California.

The Assessor’s Parcel Numbers comprising the subject property are 009-360-001 through -047, 009- 370-001 through -062, 009-380-001 through -013, 021-910-001 through -092, 009-390-001 through - 098, 009-400-001 through -097, 021-890-001 through -054, 021-900-001 through -038, and 021-920- 001 through -090. These parcels comprise the appraised and assessed portion of the subject property.

The Value by Parcel within the addenda of the report depicts which parcels are assessed or appraised as well as the corresponding development status reported by the developer. Note these parcels do not include the tax-exempt parcels that comprise the master planned community.

Shape and Dimensions
The site is irregular in shape; however, the completed individual single-family lots are also generally rectangular in shape. Site utility based on shape and dimensions is average.

Topography
The site is generally level and at street grade. The topography does not result in any particular development limitations.

Drainage
No particular drainage problems were observed or disclosed at the time of field inspection. This appraisal assumes that surface water collection, both on-site and in public streets adjacent to the subject, is adequate.

Flood Hazard Status
The following table provides flood hazard information.
742
Land Description and Analysis 30
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) `Flood Hazard StatusCommunity Panel Number06061C-0714HDate November 2, 2018Zone XDescriptionOutside of 500-year floodplainInsurance Required?No Seismic Hazards
All properties in California are subject to some degree of seismic risk. The Alquist-Priolo Earthquake Fault Zoning Act was enacted by the State of California in 1972 to regulate development near active earthquake faults. The Act required the State Geologist to delineate “Earthquake Fault Zones” (formerly known as “Special Studies Zones”) along known active faults in California. Cities and counties affected by the identified zones must limit certain development projects within the zones unless geologic investigations demonstrate that the sites are not threatened by surface displacement from future faulting.

According to information from the California Department of Conservation and the California Geological Survey, the subject is not located within an Alquist-Priolo Special Studies Zone. The subject is not located in a liquefaction zone.

Fire Hazard Risk
The Fire and Resource Assessment Program of CAL FIRE has classified areas of the subject’s County by Fire Hazard Severity Zone. As shown in the following map, a portion of the subject’s area has been classified as an area of moderate concern. However, as development of the area continues in the area, the classification will likely change.
743
Land Description and Analysis 31
City of Lincoln CFD No. 2019-1 (Independence at Lincoln)

Subject
744
Land Description and Analysis 32
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Environmental Hazards
An environmental assessment report was not provided for review, and during our inspection, we did not observe any obvious signs of contamination on or near the subject. However, environmental issues are beyond our scope of expertise. It is assumed that the property is not adversely affected by environmental hazards.

Ground Stability
A soils report was not provided for our review. Based on our inspection of the subject and observation of development on nearby sites, there are no apparent ground stability problems. However, we are not experts in soils analysis. We assume that the subject’s soil bearing capacity is sufficient to support the existing improvements.

Utilities
The availability of utilities to the subject is summarized in the following table.

UtilitiesServiceProviderWaterCity of LincolnSewerCity of LincolnElectricityPacific Gas and ElectricNatural GasPacific Gas and ElectricLocal PhoneVarious providers Zoning
The subject is zoned PD-MDR and -LDR, Planned Development - Medium and Low Density Residential, by City of Lincoln Planning Department. The following table summarizes our understanding and interpretation of the zoning requirements that affect the subject.

Zoning SummaryZoning JurisdictionCity of Lincoln Planning DepartmentZoning DesignationPD-MDR and -LDRDescriptionPlanned Development - Medium and Low Density ResidentialLegally Conforming?Appears to be legally conformingZoning Change Likely?NoPermitted UsesResidential uses According to the local planning department, there are no pending or prospective zoning changes. It appears that the current use of the site is a legally conforming use. We are not experts in the interpretation of zoning ordinances. An appropriately qualified land use attorney should be engaged if a determination of compliance is required.

Other Land Use Regulations
We are not aware of any other land use regulations that would affect the property. 745
Land Description and Analysis 33
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Easements, Encroachments and Restrictions
We have reviewed a preliminary title report prepared by First American Title Company dated April 1, 2022, March 17, 2022, and May 11, 2022, for Units 2, 5, and 6, respectively. The report identifies exceptions to title, which include various utility and access easements that are typical for a property of this type. Such exceptions would not appear to have an adverse effect on value. Our valuation assumes no adverse impacts from easements, encroachments or restrictions and further assumes that the subject has clear and marketable title.

Development/Construction Status
The subject’s current development/construction status from the information provided by the developer is shown in the following table.

Appraised Property Summary by UnitUnitsFinished SFR LotsPartially Completed HomesCompleted Homes*Homes Sold to Individuals*Appraised ParcelsAssessed ParcelsUnit 1---11121Unit 2690017022Unit 3----098Unit 4----097Unit 54012366131Unit 63011745238TOTAL139231012184407*Completed homes without a complete assessment for structural improvements by County Assessor As noted, Unit 1 was developed by Richmond American Homes, who has completely sold out this community. The details of all of the floor plans offered in the community developed by Richmond American Homes are shown in the Improvements Description section.

Permits and Fees
Based on information provided by the developer, permits and fees due at building permit average $71,251 per lot ($71,300 rounded). This figure is generally consistent with other projects in the area.

Site Development Costs
The site development costs at the subject have been completed and all the lots are in finished condition.
746
Land Description and Analysis 34
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Conclusion of Site Analysis
Overall, the physical characteristics of the site and the availability of utilities result in functional utility suitable for a variety of uses including those permitted by zoning. Uses permitted by zoning include residential uses. We are not aware of any other particular restrictions on development. 747
Land Description and Analysis 35
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Parcel Maps

748
Land Description and Analysis 36
City of Lincoln CFD No. 2019-1 (Independence at Lincoln)

749
Land Description and Analysis 37
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) 750
Land Description and Analysis 38
City of Lincoln CFD No. 2019-1 (Independence at Lincoln)

751
Land Description and Analysis 39
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Land Use Plan

752
Land Description and Analysis 40
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Aerial
*Boundaries are approximate and outline the entire master planned community, inclusive of non- taxable parcels
753
Improvements Description 41
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Improvements Description
Overview
There are two active communities at the subject being developed by Tri Pointe Homes and the details of the communities are presented in the following table.

Floor Plan SummaryFloor PlanLiving Area (SF)BedroomBathroomStoriesGarageTypical Lot Size (SF)Developer's Base PriceAzure 1,590 2-3 2 One 2-Car 5,000-Ruby 1,780 4 2 One 2-Car 5,000-Slate 2,070 4 3 One 2-Car 5,000-Lapis 2,170 3-4 2.5 Two 2-Car 5,000-Moonstone 2,630 4-6 2.5 Two 2-Car 5,000-Alan II 1,990-2,080 3-4 2.5-3 One 2-Car 5,000-Sienna 2,300 3-4 2.5-3 Two 2-Car 5,000-Ammolite 3,040 4-6 2.5-3 Two 2-Car 5,000-Sutherland 2,530 3-4 2.5-3 Two 2-Car 5,000-Andrea 2,770 3-5 2.5-3 Two 2-Car 5,000-Seth 3,030-3,200 4-6 2.5-3 Two 3-Car 5,000-Plan 12,15832.5Two2-Car4,000 & 4,500$552,000Plan 22,48143.0Two2-Car4,000 & 4,500$652,319Plan 32,72143.0Two2-Car4,000 & 4,500$668,103Plan 42,92153.0Two2-Car4,000 & 4,500$649,000Plan 11,75232.5Two2-Car3,800$528,000Plan 21,92332.5Two2-Car3,800$519,000Plan 32,12943.0Two2-Car3,800$619,971Monument at Independence (Unit 2 and 5)Revere at Independence (Unit 1)Jubilee at Independence (Unit 6)

The interior finish profile is considered to be of a typical quality for the area, which generally average to good overall quality. Tri Pointe Homes initially marketed two communities, Barrington and Lansdale at Independence; however, after a slow start, Tri Pointe pivoted to the two current active communities (Monument and Jubilee) and has maintained steady pace of sales since opening. Based on conversations with sales agents at the time, it appears the homes Tri Pointe was offering were priced higher than the other competing projects within the master plan, which led to a slow pace of sales. Note the reported developers base price are taken from the homebuilder’s website and the base prices reported may include lot premiums and/or options; therefore, the base prices are given guarded reliance. There is no homeowner’s association (HOA) encumbering the subject. The subject’s floor plans can be seen on the developer’s website.
754
Improvements Description 42
City of Lincoln CFD No. 2019-1 (Independence at Lincoln)

755
Improvements Description 43
City of Lincoln CFD No. 2019-1 (Independence at Lincoln)

756
Improvements Description 44
City of Lincoln CFD No. 2019-1 (Independence at Lincoln)

757
Real Estate Taxes 45
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Real Estate Taxes
The property tax system in California was amended in 1978 by Article XIII to the State Constitution, commonly referred to as Proposition 13. It provides for a limitation on property taxes and for a procedure to establish the current taxable value of real property by reference to a base year value, which is then modified annually to reflect inflation (if any). Annual increases cannot exceed 2% per year.

The base year was set at 1975-76 or any year thereafter in which the property is substantially improved or changes ownership. When either of these two conditions occurs, the property is to be re- appraised at market value, which becomes the new base year assessed value. Proposition 13 also limits the maximum tax rate to 1% of the value of the property, exclusive of bonds and direct charges.

Bonded indebtedness approved prior to 1978, and any bonds subsequently approved by a two-thirds vote of the district in which the property is located, can be added to the 1% tax rate.

Ad Valorem Taxes
The existing ad valorem taxes are of nominal consequence in this appraisal, primarily due to the fact these taxes will be adjusted substantially as the remaining property improvements are completed and in consideration of the definition of market value employed in this appraisal, which assumes a sale of the appraised properties. According to the Placer County Treasurer-Tax Collector’s Office, the subject has a tax rate of 1.040201% for tax year 2025-2026 (latest available), based on assessed value. In addition, the appraised properties are subject to direct charges. Based on residential properties within the subject property, direct charges average approximately $1,525 per lot.

Special Assessments
All of the appraised properties are encumbered by the Special Tax Lien of City of Lincoln CFD No. 2019-1 (Independence at Lincoln) that also increases 2% per year. With respect to special taxes, we have relied upon information provided by the special tax consultant, for the annual special tax levy on the appraised properties, which are shown as follows for tax year 2025-2026:

Special Tax Table (Fiscal Year 2025-2026)Residential PropertyVillageTax Zone 1Unit 1$3,024 per unitTax Zone 2Unit 2$3,194 per unitTax Zone 3Unit 3$2,295 per unitTax Zone 4Unit 4$2,001 per unitTax Zone 5Unit 5$3,102 per unitTax Zone 6Unit 6$2,902 per unitSource: Rate and Method of Apportionment of Special TaxesAssigned Special Tax

758
Highest and Best Use 46
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Highest and Best Use
Process
Before a property can be valued, an opinion of highest and best use must be developed for the subject site, both as if vacant, and as improved or proposed. By definition, the highest and best use must be:
 Legally permissible under the zoning regulations and other restrictions that apply to the site.  Physically possible.
 Financially feasible.
 Maximally productive, i.e., capable of producing the highest value from among the permissible, possible, and financially feasible uses.

Highest and Best Use As If Vacant
Legally Permissible
The site is zoned PD-MDR and -LDR, Planned Development - Medium and Low Density Residential.

Permitted uses include residential uses. To our knowledge, there are no legal restrictions such as easements or deed restrictions that would effectively limit the use of the property. The subject property and balance of CFD No. 2019-1 has an approved final map for 591 single-family homes on individual lots and associated improvements. The subject's present entitlements are the result of significant planning and review, and any rezone or land use different than currently approved is unlikely. Given prevailing land use patterns in the area, only residential use is given further consideration in determining highest and best use of the site, as though vacant.

Physically Possible
The physical characteristics of a site that affect its possible use include, but are not limited to, location, street frontage, visibility, access, size, shape, topography, availability of utilities, offsite improvements, easements and soil and subsoil conditions. The legally permissible test has resulted in single-family residential development; at this point the physical characteristics are examined to see if they are suited for the legally permissible use.

Based on our physical inspection of the subject property, we know of no reason why the property would not support development. All utilities are available to the perimeter of the site. The property is not located within an adverse earthquake or flood zone. However, the subject is located in a moderate area of concern fire zone and as development of the area continues in the area, the classification will likely change. Further, the subject is proximate to new development and development appears possible. Surrounding land uses are compatible and/or similar. Development within the Independence at Lincoln project and on adjacent properties provides support that soils are adequate for development. Based on the physical characteristics of the subject property, residential development is considered physically possible and most appropriate
Financially Feasible
Financial feasibility depends on supply and demand influences. With respect to financial feasibility of single-family residential development, in recent months merchant builders have acquired unimproved 759
Highest and Best Use 47
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) lots for near term construction, and there are multiple active projects in the area that demonstrate demand for new homes. Finished lots are transferring for prices that exceed the sum of unimproved lots and site development costs, which reflects completion of site development is financially feasible.

Maximally Productive
Legal, physical, and market conditions have been analyzed to evaluate the highest and best use of the appraised properties as vacant. The analysis is presented to evaluate the type of use(s) that will generate the greatest level of future benefits possible to the property. Based on the factors previously discussed, the maximally productive use of the appraised properties, and their highest and best use as vacant, is for near-term single-family residential development.

As Improved (Proposed)
As with the highest and best use as though vacant, the four tests of highest and best use must also be applied to the subject property considering the in-place improvements. Consideration must be given to the continued as-is use of the subject, as well as alternative uses for the subject. The potential alternative uses consist of demolition, expansion, conversion or renovation.

In the case of undeveloped land under development, consideration must be given to whether it makes sense to demolish existing improvements (either on-site or off-site improvements) for replacement with another use. The time and expense to demolish existing improvements, re-grade, reroute utilities or re-map must be weighed against alternative uses. If the existing or proposed improvements are not performing well, then it may produce a higher return to demolish existing improvements, if any, and re-grade the site for development of an alternative use.

Based on the current condition, the improvements completed contribute to the overall property value. The value of the subject property as improved exceeds its value as vacant less demolition. The highest and best use of the subject property as improved is for continuing construction of homes, as dictated by demand.

Most Probable Buyer
In conjunction with the definition of market value, this appraisal assumes a hypothetical sale of the subject properties to a probable buyer/user, as of the date of value. The subject is considered to have good appeal for production homes. The most probable buyer would be a developer/homebuilder for the finished lots and homes under construction. The most probable buyer for the completed homes would be an individual homeowner.
760
Valuation Methodology 48
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Valuation
Valuation Methodology
Appraisers usually consider three approaches to estimating the market value of real property. These are the cost approach, sales comparison approach and the income capitalization approach.

The cost approach assumes that the informed purchaser would pay no more than the cost of producing a substitute property with the same utility. This approach is particularly applicable when the improvements being appraised are relatively new and represent the highest and best use of the land or when the property has unique or specialized improvements for which there is little or no sales data from comparable properties.

The sales comparison approach assumes that an informed purchaser would pay no more for a property than the cost of acquiring another existing property with the same utility. This approach is especially appropriate when an active market provides sufficient reliable data. The sales comparison approach is less reliable in an inactive market or when estimating the value of properties for which no directly comparable sales data is available. The sales comparison approach is often relied upon for owner-user properties.

The income capitalization approach reflects the market’s perception of a relationship between a property’s potential income and its market value. This approach converts the anticipated net income from ownership of a property into a value indication through capitalization. The primary methods are direct capitalization and discounted cash flow analysis, with one or both methods applied, as appropriate. This approach is widely used in appraising income-producing properties.

Additional analyses often undertaken in the valuation of subdivisions include extraction, land residual analysis, and the subdivision development method.

Reconciliation of the various indications into a conclusion of value is based on an evaluation of the quantity and quality of available data in each approach and the applicability of each approach to the property type.

The methodology employed in this assignment is summarized as follows:

Approaches to ValueApproachApplicability to SubjectUse in AssignmentCost ApproachNot ApplicableNot UtilizedSales Comparison ApproachApplicableUtilizedIncome Capitalization ApproachApplicableUtilized

761
Market Valuation – Floor Plans 49
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Market Valuation – Floor Plans
The market value of the subject’s smallest floor plans within each community with a completed home, Revere, Jubilee, and Monument at Independence, are estimated in this section. The objective of the analysis is to estimate the base price, net of incentives, upgrades and lot premiums. Incentives can take the form of direct price reductions or non-price incentives such as upgrades, interest rate buydowns, or non-recurring closing costs. The sales comparison approach to value is employed in order to provide an opinion of market value for the smallest floor plan offered in the communities.

This approach is based on the economic principle of substitution. According to The Appraisal of Real Estate, 15th Edition (Chicago: Appraisal Institute, 2020), “The principle of substitution holds that the value of property tends to be set by the cost of acquiring a substitute or alternative property of similar utility and desirability within a reasonable amount of time.” The sales comparison approach is applicable when there are sufficient recent, reliable transactions to indicate value patterns or trends in the market.

The proper application of this approach requires obtaining recent sales data for comparison with the appraised properties. In order to assemble the comparable sales, we searched public records and other data sources for leads, then confirmed the raw data obtained with parties directly related to the transactions (primarily brokers, buyers and sellers). Attempts were made to obtain comparable sales from surrounding communities; however, none of those attempts were returned. Further, we searched the Multiple Listing Service (MLS) for resales of comparable properties. The comparables utilized in the following analysis are from sales within the subject’s active communities within the subject property. For the homes with various options of the number of bedrooms or bathrooms, consistent with the “not-less-than” valuation, we will utilize the lesser of the two options. The floor plans within the communities are shown in the following table. 762
Market Valuation – Floor Plans 50
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Floor Plan SummaryFloor PlanLiving Area (SF)BedroomBathroomStoriesGarageTypical Lot Size (SF)Developer's Base PriceAzure 1,590 2-3 2 One 2-Car 5,000-Ruby 1,780 4 2 One 2-Car 5,000-Slate 2,070 4 3 One 2-Car 5,000-Lapis 2,170 3-4 2.5 Two 2-Car 5,000-Moonstone 2,630 4-6 2.5 Two 2-Car 5,000-Alan II 1,990-2,080 3-4 2.5-3 One 2-Car 5,000-Sienna 2,300 3-4 2.5-3 Two 2-Car 5,000-Ammolite 3,040 4-6 2.5-3 Two 2-Car 5,000-Sutherland 2,530 3-4 2.5-3 Two 2-Car 5,000-Andrea 2,770 3-5 2.5-3 Two 2-Car 5,000-Seth 3,030-3,200 4-6 2.5-3 Two 3-Car 5,000-Plan 12,15832.5Two2-Car4,000 & 4,500$552,000Plan 22,48143.0Two2-Car4,000 & 4,500$652,319Plan 32,72143.0Two2-Car4,000 & 4,500$668,103Plan 42,92153.0Two2-Car4,000 & 4,500$649,000Plan 11,75232.5Two2-Car3,800$528,000Plan 21,92332.5Two2-Car3,800$519,000Plan 32,12943.0Two2-Car3,800$619,971Monument at Independence (Unit 2 and 5)Revere at Independence (Unit 1)Jubilee at Independence (Unit 6)

The comparable sales are summarized in the following table.

Comparable Home Sale SummaryNo.AddressContract DateSale PriceClose of EscrowLiving Area (SF)BedroomBathroomGarageYear BuiltLot Size (SF)13031 United Drive7/13/2025$584,387 Pending1,75232.52-Car20253,60023067 United Drive5/17/2025$585,380 6/18/20251,75232.52-Car20253,60033090 Paine Street3/18/2025$579,841 4/22/20251,75232.52-Car20253,8004215 United Court2/15/2025$572,364 6/3/20251,75232.52-Car20253,62353006 Paine Street2/11/2025$589,474 4/30/20251,75232.52-Car20253,8006248 United Court5/23/2025$707,228 Pending2,12943.02-Car20254,3817227 United Court4/27/2025$640,999 7/16/20252,12943.02-Car20253,67682986 Delegate Drive8/14/2025$625,763 Pending2,15832.52-Car20254,00092849 Delegate Drive3/17/2025$640,923 Pending2,15832.52-Car20254,340103010 Delegate Drive12/19/2024$633,532 2/12/20252,15832.52-Car20254,000 Discussion of Adjustments
The sales are compared to the subject and adjusted to account for material differences that affect value. Adjustments are considered for the following factors, in the sequence shown below. 763
Market Valuation – Floor Plans 51
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Adjustment Factor Accounts For Comments
Special Taxes Bond debt has a direct impact on
the amount for which the end
product will sell. In an effort to
account for the impact of bond
indebtedness on the sales price, we
establish a present value amount
for the difference in the bond
encumbrance between the subject
and comparables based on the
annual assessment, and the
estimated average holding period of
a single-family home, which is
estimated at 12 years.

The subject and all of the
comparables have a bond
encumbrance and are adjusted
accordingly.

Upgrades and
Incentives
The objective of the analysis is to
estimate the base value per floor
plan, net of incentives. Incentives
can take the form of direct price
reductions or non-price incentives
such as upgrades or non-recurring
closing costs.

Incentives and upgrades included in
the sales have been considered and
adjusted for in this analysis.

Real Property Rights Fee simple, leased fee, leasehold, partial interest, etc.

All the comparables represent fee
simple estate transactions.

Therefore, adjustments for property
rights are not necessary.

Financing Terms Seller financing, or assumption of
existing financing, at non-market
terms.

The comparable sales were cash to
the seller transactions and do not
require adjustments.

Conditions of Sale Extraordinary motivation of buyer
or seller, assemblage, forced sale.

The comparables did not involve
any non-market or atypical
conditions of sale. Adjustments for
this factor do not apply.

Market Conditions
(Date of Sale, Phase
Adjustment)
The market conditions vary over
time, but the date of this appraisal
is for a specific point in time. In a
dynamic economy – one that is
undergoing changes in the value of
the dollar, interest rates and
economic growth or decline – extra
attention needs to be paid to assess
changing market conditions.

Significant monthly changes in price
levels can occur in several areas of a
neighborhood, while prices in other
areas remain relatively stable.

As demonstrated in the previous
market analysis section, new home
pricing on a dollar per square foot
basis has been fluctuating over the
past several quarters in the
subject’s market area, as well as
within the region overall. Home
pricing over the past several months
has moderated and/or remained
steady as homebuilders have
adjusted to shifting demand; as
such, no adjustments are warranted
for market conditions.
764
Market Valuation – Floor Plans 52
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Adjustment Factor Accounts For Comments
Although the adjustment for market
conditions is often referred to as a
time adjustment, time is not the
cause of the adjustment.

Location Location is a very important factor
to consider when making
comparisons. The comparables
need not be in the same
neighborhood but should be in
neighborhoods that offer the same
advantage and have, in general, the
same overall desirability to the
most probable buyer or user.

The subject and all of the
comparables are located in a similar
location and no adjustments are
warranted.

Community Appeal Community characteristics that may
influence sale prices include a gated
amenity or the condition of
surrounding development.

The subject and all of the
comparables have similar
community appeal and do not
require adjustments.

Lot Size The lot size adjustment pertains to
the differences between the
subject’s average lot size and
comparables with either larger or
smaller lots. It does not include any
lot premium adjustments, which are
adjusted for separately. The
amount of the adjustment used in
the comparison of the base lot sizes
comes from a survey of premiums
paid for larger lots.

Considering the average lot size
adjustment factors indicated by the
comparable sales utilized in this
analysis, lot size adjustment factor
of $12.00 /SF is considered
reasonable for the subject’s
residential lots. This figure is
supported by observations of sales
in the subject’s market area.

Lot Premiums/
Discounts
Properties sometimes achieve
premiums for corner or cul-de-sac
positioning, or proximity to open
space or views. Adjustments for lot
position premiums would be in
addition to lot size adjustments
previously considered.

Appropriate adjustments are
applied based upon lot placement
and configuration within their
respective projects.

Design and Appeal Design and appeal of a floor plan is
consumer specific. One exterior
may appeal to one buyer, while
another appeals to a different
buyer. These types of features for
new homes with similar functional
utility are not typically noted in the
base sales prices.

All of the comparables are similar to
the subject in regard to design and
appeal.
765
Market Valuation – Floor Plans 53
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Adjustment Factor Accounts For Comments
Quality of
Construction
Construction quality can differ from
slightly to substantially between
projects and is noted in the exterior
and interior materials and design
features of a standard unit. In terms
of quality of construction, the
subject represents good
construction quality.

All of the comparable sales feature
similar construction quality and do
not require adjustments. However,
slight adjustments are made to
those comparables with superior or
inferior quality finishes.

Age/Condition When comparing resale to resale,
the market generally reflects a
difference of 1% per year of
difference in effective age.

All of the comparable sales
represent new construction; thus,
no adjustments are required.

Functional Utility Ability to adequately provide for its intended purpose.

The appraised properties and
comparables represent traditional
detached single-family residential
construction on similar lot size
categories as the subject.

Adjustments for this factor do not
apply.

Room Count For similar size units the differences
between room count is a buyer
preference. One buyer might prefer
two bedrooms and a den versus a
three-bedroom unit. Extra rooms
typically result in additional building
area and are accounted for in the
size adjustment. Therefore, no
adjustments are made for number
of total rooms or bedrooms.

Because bathrooms are a functional
item for each floor plan and add
substantial cost due to the number
of plumbing fixtures, an adjustment
is made for the difference in the
number of fixtures between the
subject and the comparable sales.

The adjustment is based on an
amount of $10,000 per fixture (or
half-bath) and is supported by cost
estimates for an average quality
home in the Residential Cost
Handbook, published by the
Marshall and Swift Corporation.

Considering the fact that plumbing
upgrades for existing bathrooms
generally range from $5,000 to over
$25,000 for the various fixtures, the
$10,000 per fixture, or half-bath, is
supported. Consequently, a factor
of $20,000 per full bath is also
applied in our analysis.

Unit Size/Living Area Units similar (in the same
development), except for size, were
compared to derive the applicable
The typical range indicated by the
paired units in this analysis
generally demonstrated a value
766
Market Valuation – Floor Plans 54
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Adjustment Factor Accounts For Comments
adjustment for unit size. Those used
for comparison purposes, are units
within similar projects. Units within
the same project were used since
they have a high degree of similarity
in quality, workmanship, design and
appeal. Other items such as a single
level or two-story designs, number
of bathrooms and number of garage
spaces were generally similar in
these comparisons, in order to
avoid other influences in price per
square foot. Where differences
exist, they are minor and do not
impact the overall range or average
concluded.
range from approximately $50 to
upwards of $100 per square foot.

Considering the information cited
above, a factor of $85.00 per square
foot is concluded to be appropriate
and reasonable for the difference in
living area between the subject and
the comparables, given the quality
of the product.

Number of Stories For similar size units, the
differences between the number of
stories is typically a buyer
preference. One buyer might prefer
a single-story versus a two-story
unit.

In current market conditions, single
story floor plans typically demand a
slight premium; as such, an
adjustment of 2% is applied for
story differences.

Parking/Garage Number of garage spaces The subject and all of the comparables have two-car garages;
therefore, no adjustments are
warranted for number of
parking/garages.

Landscaping Included landscaping The subject and all of the comparables include only front yard
landscaping. Therefore, no
adjustment is warranted for
landscaping.

Adjustment Grids
The following pages include grids reflecting the aforementioned adjustments.

767
Market Valuation – Floor Plans 55
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Azure - Revere at IndependenceProject InformationSubject PropertyProject Name Revere at Independence Jubilee at Independence Jubilee at Independence Jubilee at Independence Jubilee at Independence Jubilee at IndependencePlan Azure Plan 1 Plan 1 Plan 1 Plan 1 Plan 1Address/Lot Number 3031 United Drive 3067 United Drive 3090 Paine Street 215 United Court 3006 Paine StreetCity/Area Lincoln Lincoln Lincoln Lincoln Lincoln LincolnPrice N/Ap $584,387 $585,380 $579,841 $572,364 $589,474Price Per SF N/Ap $333.55 $334.12 $330.96 $326.69 $336.46Special Taxes (12-year hold at 5.5%)$26,063$25,007$25,007$25,007$25,007$25,007Adjustment-$1,056-$1,056-$1,056-$1,056-$1,056Adjusted Price (Including Bonds) $583,331 $584,324 $578,785 $571,308 $588,418Total Consideration per SF $332.95 $333.52 $330.36 $326.09 $335.85Data Source Project sales agent Project sales agent Project sales agent Project sales agent Project sales agentIncentives N/Ap Yes ($50,434) Yes ($68,877) Yes ($60,879) Yes ($20,000) Yes ($25,000)Upgrades Base Yes ($45,397) Yes ($44,390) Yes ($42,851) Yes ($41,374) Yes ($56,484)Effective Base Sales Price $487,500 $471,057 $475,055 $509,934 $506,934Adjustments: Factor Description +/(-) Description +/(-) Description +/(-) Description +/(-) Description +/(-)Property Rights Fee Simple Similar Similar Similar Similar SimilarFinancing Terms Cash Equivalent Similar Similar Similar Similar SimilarConditions of Sale Market Market Market Market Market MarketMarket ConditionsContract Date 9/1/2025 7/13/2025 5/17/2025 3/18/2025 2/15/2025 2/11/2025Project Location Lincoln Lincoln Lincoln Lincoln Lincoln LincolnCommunity Appeal Average Similar Similar Similar Similar SimilarLot Size $12.00 5,000 3,600 $16,800 3,600 $16,800 3,800 $14,400 3,623 $16,524 3,800 $14,400Lot Premium N/Ap Similar Similar Similar Similar SimilarDesign and Appeal Average Similar Similar Similar Similar SimilarQuality of Construction Good Similar Similar Similar Similar SimilarAge (Total/Effective) New Similar Similar Similar Similar SimilarCondition Good/New Similar Similar Similar Similar SimilarFunctional Utility Average Similar Similar Similar Similar SimilarRoom CountBedrooms 3 3 3 3 3 3Baths $20,000 2.0 2.5 ($10,000) 2.5 ($10,000) 2.5 ($10,000) 2.5 ($10,000) 2.5 ($10,000)Living Area (SF) $85.00 1,590 1,752 ($13,770) 1,752 ($13,770) 1,752 ($13,770) 1,752 ($13,770) 1,752 ($13,770)Number of Stories One Two ($9,750) Two ($9,421) Two ($9,501) Two ($10,199) Two ($10,139)Heating/Cooling Central/Forced Similar Similar Similar Similar SimilarGarage $15,000 2-Car 2-Car 2-Car 2-Car 2-Car 2-CarLandscaping Front Similar Similar Similar Similar SimilarPool/Spa None Similar Similar Similar Similar SimilarPatios/Decks Patio Similar Similar Similar Similar SimilarFencing Rear Similar Similar Similar Similar SimilarKitchen EquipmentAverageSimilarSimilarSimilarSimilarSimilarOther None Similar Similar Similar Similar SimilarGross Adjustments $50,320 $49,991 $47,671 $50,493 $48,309Net Adjustments ($16,720) ($16,391) ($18,871) ($17,445) ($19,509)Adjusted Retail Value $470,780 $454,665 $456,184 $492,489 $487,425Concluded Retail Value $465,000Indicated Value Per SF $292.45 Comparable 1Comparable 2Comparable 5Comparable 3Comparable 4

Adjustments were necessary to account for differences between these homes and the subject’s floor plan. The sales provide a range of indicators of $454,665 to $492,489 . All of the comparables represent good indicators of value. Given the current market conditions, an estimate of value slightly below the average of the comparables, $472,309, is considered to be reasonable. We have concluded an estimate of value of $465,000 for Azure at Revere at Independence. 768
Market Valuation – Floor Plans 56
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Plan 1 - Jubilee at IndependenceProject InformationSubject PropertyProject Name Jubilee at Independence Jubilee at Independence Jubilee at Independence Jubilee at Independence Jubilee at Independence Jubilee at IndependencePlan Plan 1 Plan 1 Plan 1 Plan 1 Plan 1 Plan 1Address/Lot Number 3031 United Drive 3067 United Drive 3090 Paine Street 215 United Court 3006 Paine StreetCity/Area Lincoln Lincoln Lincoln Lincoln Lincoln LincolnPrice N/Ap $584,387 $585,380 $579,841 $572,364 $589,474Price Per SF N/Ap $333.55 $334.12 $330.96 $326.69 $336.46Special Taxes (12-year hold at 5.5%)$25,007$25,007$25,007$25,007$25,007$25,007Adjustment$0$0$0$0$0Adjusted Price (Including Bonds) $584,387 $585,380 $579,841 $572,364 $589,474Total Consideration per SF $333.55 $334.12 $330.96 $326.69 $336.46Data Source Project sales agent Project sales agent Project sales agent Project sales agent Project sales agentIncentives N/Ap Yes ($50,434) Yes ($68,877) Yes ($60,879) Yes ($20,000) Yes ($25,000)Upgrades Base Yes ($45,397) Yes ($44,390) Yes ($42,851) Yes ($41,374) Yes ($56,484)Effective Base Sales Price $488,556 $472,113 $476,111 $510,990 $507,990Adjustments: Factor Description +/(-) Description +/(-) Description +/(-) Description +/(-) Description +/(-)Property Rights Fee Simple Similar Similar Similar Similar SimilarFinancing Terms Cash Equivalent Similar Similar Similar Similar SimilarConditions of Sale Market Market Market Market Market MarketMarket ConditionsContract Date 9/1/2025 7/13/2025 5/17/2025 3/18/2025 2/15/2025 2/11/2025Project Location Lincoln Lincoln Lincoln Lincoln Lincoln LincolnCommunity Appeal Average Similar Similar Similar Similar SimilarLot Size $12.00 3,800 3,600 $2,400 3,600 $2,400 3,800 $0 3,623 $2,124 3,800 $0Lot Premium N/Ap Similar Similar Similar Similar SimilarDesign and Appeal Average Similar Similar Similar Similar SimilarQuality of Construction Good Similar Similar Similar Similar SimilarAge (Total/Effective) New Similar Similar Similar Similar SimilarCondition Good/New Similar Similar Similar Similar SimilarFunctional Utility Average Similar Similar Similar Similar SimilarRoom CountBedrooms 3 3 3 3 3 3Baths $20,000 2.5 2.5 $0 2.5 $0 2.5 $0 2.5 $0 2.5 $0Living Area (SF) $85.00 1,752 1,752 $0 1,752 $0 1,752 $0 1,752 $0 1,752 $0Number of Stories Two Two Two Two Two TwoHeating/Cooling Central/Forced Similar Similar Similar Similar SimilarGarage $15,000 2-Car 2-Car 2-Car 2-Car 2-Car 2-CarLandscaping Front Similar Similar Similar Similar SimilarPool/Spa None Similar Similar Similar Similar SimilarPatios/Decks Patio Similar Similar Similar Similar SimilarFencing Rear Similar Similar Similar Similar SimilarKitchen EquipmentAverageSimilarSimilarSimilarSimilarSimilarOther None Similar Similar Similar Similar SimilarGross Adjustments $2,400 $2,400 $0 $2,124 $0Net Adjustments $2,400 $2,400 $0 $2,124 $0Adjusted Retail Value $490,956 $474,513 $476,111 $513,114 $507,990Concluded Retail Value $485,000Indicated Value Per SF $276.83 Comparable 1Comparable 2Comparable 3Comparable 4Comparable 5

Adjustments were necessary to account for differences between these homes and the subject’s floor plan. The sales provide a range of indicators of $474,513 to $513,114 . All of the comparables represent good indicators of value. Given the current market conditions, an estimate of value slightly below the average of the comparables, $492,537, is considered to be reasonable. We have concluded an estimate of value of $485,000 for Plan 1 at Jubilee at Independence. 769
Market Valuation – Floor Plans 57
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Plan 1 - Monument at Independence (Unit 2)Project InformationSubject PropertyProject Name Monument at Independence Jubilee at Independence Jubilee at Independence Monument at Independence Monument at Independence Monument at IndependencePlan Plan 1 Plan 3 Plan 3 Plan 1 Plan 1 Plan 1Address/Lot Number 248 United Court 227 United Court 2986 Delegate Drive 2849 Delegate Drive 3010 Delegate DriveCity/Area Lincoln Lincoln Lincoln Lincoln Lincoln LincolnPrice N/Ap $707,228 $640,999 $625,763 $640,923 $633,532Price Per SF N/Ap $332.19 $301.08 $289.97 $297.00 $293.57Special Taxes (12-year hold at 5.5%)$27,528$25,007$25,007$26,739$26,739$26,739Adjustment-$2,522-$2,522-$790-$790-$790Adjusted Price (Including Bonds) $704,706 $638,477 $624,973 $640,133 $632,742Total Consideration per SF $331.00 $299.90 $289.61 $296.63 $293.21Data Source Project sales agent Project sales agent Project sales agent Project sales agent Project sales agentIncentives N/Ap Yes ($20,000) Yes ($23,829) Yes ($76,763) Yes ($20,000) Yes ($30,432)Upgrades Base Yes ($94,238) Yes ($51,009) Yes ($41,273) Yes ($49,933) Yes ($50,542)Effective Base Sales Price $590,468 $563,639 $506,937 $570,200 $551,768Adjustments: Factor Description +/(-) Description +/(-) Description +/(-) Description +/(-) Description +/(-)Property Rights Fee Simple Similar Similar Similar Similar SimilarFinancing Terms Cash Equivalent Similar Similar Similar Similar SimilarConditions of Sale Market Market Market Market Market MarketMarket ConditionsContract Date 9/1/2025 5/23/2025 4/27/2025 8/14/2025 3/17/2025 12/19/2024Project Location Lincoln Lincoln Lincoln Lincoln Lincoln LincolnCommunity Appeal Average Similar Similar Similar Similar SimilarLot Size $12.00 4,500 4,381 $1,428 3,676 $9,888 4,000 $6,000 4,340 $1,920 4,000 $6,000Lot Premium N/Ap Similar Similar Similar Similar SimilarDesign and Appeal Average Similar Similar Similar Similar SimilarQuality of Construction Good Similar Similar Similar Similar SimilarAge (Total/Effective) New Similar Similar Similar Similar SimilarCondition Good/New Similar Similar Similar Similar SimilarFunctional Utility Average Similar Similar Similar Similar SimilarRoom CountBedrooms 3 4 4 3 3 3Baths $20,000 2.5 3.0 ($10,000) 3.0 ($10,000) 2.5 $0 2.5 $0 2.5 $0Living Area (SF) $85.00 2,158 2,129 $2,465 2,129 $2,465 2,158 $0 2,158 $0 2,158 $0Number of Stories Two Two Two Two Two TwoHeating/Cooling Central/Forced Similar Similar Similar Similar SimilarGarage $15,000 2-Car 2-Car 2-Car 2-Car 2-Car 2-CarLandscaping Front Similar Similar Similar Similar SimilarPool/Spa None Similar Similar Similar Similar SimilarPatios/Decks Patio Similar Similar Similar Similar SimilarFencing Rear Similar Similar Similar Similar SimilarKitchen EquipmentAverageSimilarSimilarSimilarSimilarSimilarOther None Similar Similar Similar Similar SimilarGross Adjustments $13,893 $22,353 $6,000 $1,920 $6,000Net Adjustments ($6,107) $2,353 $6,000 $1,920 $6,000Adjusted Retail Value $584,361 $565,992 $512,937 $572,120 $557,768Concluded Retail Value $540,000Indicated Value Per SF $250.23 Comparable 6Comparable 7Comparable 8Comparable 9Comparable 10

Adjustments were necessary to account for differences between these homes and the subject’s floor plan. The sales provide a range of indicators of $512,937 to $584,361 . Comparable 8 represents a low indicator of value compared to the other comparables and is given secondary reliance. Given the stated base price on the developer’s website is $552,000, an estimate of value slightly less than the reported base price is considered to be reasonable. We have concluded an estimate of value of $540,000 for Plan 1 Monument at Independence (Unit 2).

770
Market Valuation – Floor Plans 58
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Plan 1 - Monument at Independence (Unit 5)Project InformationSubject PropertyProject Name Monument at Independence Jubilee at Independence Jubilee at Independence Monument at Independence Monument at Independence Monument at IndependencePlan Plan 1 Plan 3 Plan 3 Plan 1 Plan 1 Plan 1Address/Lot Number 248 United Court 227 United Court 2986 Delegate Drive 2849 Delegate Drive 3010 Delegate DriveCity/Area Lincoln Lincoln Lincoln Lincoln Lincoln LincolnPrice N/Ap $707,228 $640,999 $625,763 $640,923 $633,532Price Per SF N/Ap $332.19 $301.08 $289.97 $297.00 $293.57Special Taxes (12-year hold at 5.5%)$26,739$25,007$25,007$26,739$26,739$26,739Adjustment-$1,732-$1,732$0$0$0Adjusted Price (Including Bonds) $705,496 $639,267 $625,763 $640,923 $633,532Total Consideration per SF $331.37 $300.27 $289.97 $297.00 $293.57Data Source Project sales agent Project sales agent Project sales agent Project sales agent Project sales agentIncentives N/Ap Yes ($20,000) Yes ($23,829) Yes ($76,763) Yes ($20,000) Yes ($30,432)Upgrades Base Yes ($94,238) Yes ($51,009) Yes ($41,273) Yes ($49,933) Yes ($50,542)Effective Base Sales Price $591,258 $564,429 $507,727 $570,990 $552,558Adjustments: Factor Description +/(-) Description +/(-) Description +/(-) Description +/(-) Description +/(-)Property Rights Fee Simple Similar Similar Similar Similar SimilarFinancing Terms Cash Equivalent Similar Similar Similar Similar SimilarConditions of Sale Market Market Market Market Market MarketMarket ConditionsContract Date 9/1/2025 5/23/2025 4/27/2025 8/14/2025 3/17/2025 12/19/2024Project Location Lincoln Lincoln Lincoln Lincoln Lincoln LincolnCommunity Appeal Average Similar Similar Similar Similar SimilarLot Size $12.00 4,000 4,381 ($4,572) 3,676 $3,888 4,000 $0 4,340 ($4,080) 4,000 $0Lot Premium N/Ap Similar Similar Similar Similar SimilarDesign and Appeal Average Similar Similar Similar Similar SimilarQuality of Construction Good Similar Similar Similar Similar SimilarAge (Total/Effective) New Similar Similar Similar Similar SimilarCondition Good/New Similar Similar Similar Similar SimilarFunctional Utility Average Similar Similar Similar Similar SimilarRoom CountBedrooms 3 4 4 3 3 3Baths $20,000 2.5 3.0 ($10,000) 3.0 ($10,000) 2.5 $0 2.5 $0 2.5 $0Living Area (SF) $85.00 2,158 2,129 $2,465 2,129 $2,465 2,158 $0 2,158 $0 2,158 $0Number of Stories Two Two Two Two Two TwoHeating/Cooling Central/Forced Similar Similar Similar Similar SimilarGarage $15,000 2-Car 2-Car 2-Car 2-Car 2-Car 2-CarLandscaping Front Similar Similar Similar Similar SimilarPool/Spa None Similar Similar Similar Similar SimilarPatios/Decks Patio Similar Similar Similar Similar SimilarFencing Rear Similar Similar Similar Similar SimilarKitchen EquipmentAverageSimilarSimilarSimilarSimilarSimilarOther None Similar Similar Similar Similar SimilarGross Adjustments $17,037 $16,353 $0 $4,080 $0Net Adjustments ($12,107) ($3,647) $0 ($4,080) $0Adjusted Retail Value $579,151 $560,782 $507,727 $566,910 $552,558Concluded Retail Value $535,000Indicated Value Per SF $247.91 Comparable 6Comparable 7Comparable 8Comparable 9Comparable 10

Adjustments were necessary to account for differences between these homes and the subject’s floor plan. The sales provide a range of indicators of $507,727 to $579,151 . Similar to the prior analysis, Comparable 8 represents a low indicator of value compared to the other comparables and is given secondary reliance. Given the stated base price on the developer’s website is $552,000, an estimate of value slightly less than the reported base price is considered to be reasonable. We have concluded an estimate of value of $535,000 for Plan 1 Monument at Independence (Unit 5). 771
Market Valuation – Floor Plans 59
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Conclusion of Home Values
Based on the analysis herein, the market value conclusions for the homes are summarized in the following table.

Floor Plan Value ConclusionsFloor PlanCommunityUnitLiving Area (SF)BedroomBathroomStoriesGarageTypical Lot Size (SF)Concluded Base Retail ValueAzureRevereUnit 11,59032.0One2-Car5,000$465,000Plan 1JubileeUnit 61,75232.5Two2-Car3,800$485,000Plan 1MonumentUnit 22,15832.5Two2-Car4,500$540,000Plan 1MonumentUnit 52,15832.5Two2-Car4,000$535,000

772
Residential Lot Valuation 60
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Residential Lot Valuation
For the purpose of estimating the value of the subject’s lots, we have identified the benchmark lot category of Unit 2. Following the conclusion of value for the benchmark lots we will address the differences between the benchmark lot category compared to the remaining lot categories comprising the subject property. The following table presents all of the subject lots.

Ownership TableUnitCommunityOwnershipTypical Lot Size (SF)Tax ZoneAssessedAppraisedNo. of LotsUnit 1RevereIndividual Homeowners5,00011211122Unit 2MonumentTri Pointe Homes and Individual Homeowners4,5002227092Unit 3HeartlandsIndividual Homeowners3,375398098Unit 4TraditionsIndividual Homeowners3,015497097Unit 5MonumentTri Pointe Homes and Individual Homeowners4,0005316192Unit 6JubileeTri Pointe Homes and Individual Homeowners3,8006385290Total407184591Total - City of Lincoln CFD No. 2019-1 (Independence at Lincoln) We will utilize the sales comparison approach and a land residual analysis to estimate the market value of the lots for the benchmark lot category. The estimate of value assumes the lots would sell on a bulk, or wholesale, basis. That is, a group of lots would transfer in one transaction to a single buyer.

Later in this report, we apply a lot size adjustment factor to account for differing lot sizes within the subject.

Sales Comparison Approach
In this section of the report, we will utilize the sales comparison approach to estimate the market value of the subject lots. This value estimate assumes the subject property would sell on a bulk, or wholesale, basis. That is, it would transfer in one transaction to a single buyer. This approach develops an indication of value by researching, verifying, and analyzing sales of similar properties. Our sales research focused on transactions within the following parameters:
 Location: Lincoln and surrounding areas
 Typical Lot Size: 3,000 to 6,000 square feet
 Number of Lots: 40 to 250 lots
 Transaction Date: 2023 or later
The bulk lot sales are analyzed on a loaded lot basis. Loaded lot is the equivalent of underlying land, any remaining site development costs and all fees paid through the building permit for home construction. The most relevant sales are summarized in the following table:
773
Sales Comparison Approach 61
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Summary of Comparable Land SalesNo.Name/AddressSale Date;StatusSale Price; Bond Consideration/LotTypical Lot Size Number of Lots$/LotExpenditures After Purchase1Village 15/16 - Phase 1C Placer OneMay-25$25,746,9753,102201$128,094$136,806Sunset Blvd. Closed$6,000Placer CountyPlacer County2Freedom at LibertyJan-25$14,960,0003,82588$170,000$70,694Tribute Ln. Closed$6,200LincolnPlacer County3Noble at LibertyJan-25$9,900,0004,25060$165,000$69,708Liberty Pky. Closed$6,700LincolnPlacer County4Villages 2 - 7 - Phase 1A Placer OneDec-24$91,335,0005,466626$145,903$80,200Sunset Blvd. In-Contract$5,602Placer CountyPlacer County5Legacy at LibertyDec-24$15,750,0004,40096$164,063$72,326Liberty Pky.Closed$6,800LincolnPlacer County6Winding Creek - Villages C-6 & C-8Nov-24$15,280,0004,05080$191,000$92,423E/O Westbrook Blvd., N/O Blue Oaks Blvd. Closed$6,474RosevillePlacer County7Villages 12/13 - Phase 1B Placer OneNov-24$21,180,0005,011141$150,213$134,246Foothills Blvd. Closed$6,000Placer CountyPlacer County8Placer One - Villages 8 through 11Sep-24$23,591,5004,426253$93,247$147,263Momentum Dr. Closed$6,000Placer CountyPlacer County9Amoruso Ranch - Phase 1 (AR-12, 13, 21, 22, 24, 25Dec-23$52,324,3923,992343$152,549$88,501Amoruso Ranch Rd. Closed$6,800RosevillePlacer CountySubject4,500 92City of Lincoln CFD No. 2019-1 (Independence at Lincoln)Lincoln, CA Comments: 201 residential lots with a typical lot size of 3,102 square feet sold in bluetop condition for $128,094 per lot. The site development costs to bring the lots to finished condition is estimated at $64,906 per lot. Permits and fees are estimated at $71,900 per lot. We were not provided with an estimated bond encumbrance. Therefore, based on a survey of surrounding properties, it is estimated the subject would have a bond encumbrance of $3,000 per lot. The purchase price is in addition to a Master Marketing Fee of 0.50% of the purchase price in connection with the closing of each individual home.Comments: This is a sale of 88 finished lots with a typical lot size of 3,825 square feet within Liberty at Lincoln. Permits and fees are estimated at $70,694 per lot, while special taxes are estimated at $3,100 per lot per year. The community is located proximate to the City of Lincoln Wastewater Treatment Plant.Comments: This is the first phase of the transaction of 60 finished lots with a typica lot size of 4,250 at Liberty at Lincoln. The second phase consists of nine lots and will transfer upon completion of dry-utility improvements and final map recordation. Permits and fees are estimated at $69,708 per lot, while special taxes are estimated at $3,350 per lot per year. The community is located proximate to the City of Lincoln Wastewater Treatment Plant.Comments: 626 residential lots with a typical lot size of 5,466 square feet sold in finished condition for $145,903 per lot. The lots will transfer in three takedowns with the first one occurring on December 18, 2024 (238 lots), and each year thereafter. The final two takedowns will have 273 and 115 lots. Permits and fees are estimated at $80,200 per lot, while special taxes are estimated at $2,801 per lot. The purchase price is in addition to a Master Marketing Fee of 0.50% of the purchase price in connection with the closing of each individual home.Comments: This is a sale of 96 finished lots with a typical lot size of 4,400 square feet within Liberty at Lincoln. Permits and fees are estimated at $72,326 per lot, while special taxes are estimated at $3,400 per lot per year.Comments: This comparable represents the sale of 80 finished lots with a typical lot size of 4,050 square feet. Permits & fees average $92,423 per lot and annual special assessments are $3,237 per lot. The purchase price is in addition to a Master Marketing Fee of 0.75% of HUD Purchase Price which is to be paid in connection with each home closing.Comments: 141 residential lots with a typical lot size of 5,011 square feet sold in bluetop condition for $150,213 per lot. The property was purchased by a land bank, who subsequently went under contract to Pulte Homes. The site development costs to bring the lots to finished condition is estimated at $54,246 per lot. Permits and fees are estimated at $80,000 per lot. We were not provided with an estimated bond encumbrance. Therefore, based on a survey of surrounding properties, it is estimated the subject would have a bond encumbrance of $3,000 per lot. The purchase price is in addition to a Master Marketing Fee of 0.50% of the purchase price in connection with the closing of each individual home.Comments: This is a sale of 253 bluetop lots consisting of Villages 8 through 11 in Placer One. Village 8 consists of 82 residential lots with an estimated 2,500 square foot typical lot size and have a four-pack configuration. The remaining villages have a traditional lot configuration. The remaining site development costs were estimated by the seller at $63,863 per lot, while permits and fees are estimated at $83,400 per lot. Based on other projects in the area, the special taxes are estimated at $3,000 per lot.Comments: This transaction represents the sale of 343 finished lots (151 - 5,000 SF, 192 - 3,200 SF), with an average lot size of 3,992 square feet, 204 of which transferred to D.R. Horton and the remaining 139 lots to Amoruso P1A – Roseville, L.P., which will serve as a Landbank for D.R. Horton to acquire lots at a stipulated takedown schedule. Permits & fees average $88,501 per lot and annual special taxes average $3,300 per lot.

774
Sales Comparison Approach 62
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Comparable Land Sales Map
775
Sales Comparison Approach 63
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Loaded Lot Analysis
Prior to the application of adjustments, the following items are added to the per lot sale price.

Loaded Lot Analysis
Remaining Site Dev. Cost We apply adjustments for remaining site development costs (if any).

Permits and Fees Permits and fees due upon building permit are included on a dollar-for- dollar basis.

Bond Encumbrance If applicable, we consider the annual special tax and typical holding time for a developer (2 years) for each comparable (if bond debt exists).

Adjustment Factors
The sales are compared to the subject and adjusted to account for material differences that affect value. Adjustments are considered for the following factors, in the sequence shown below.

Adjustment Factor Accounts For Comments
Real Property Rights Fee simple, leased fee, leasehold, partial interest, etc.

All the comparables represent fee
simple estate transactions.

Therefore, adjustments for property
rights are not necessary.

Financing Terms Seller financing, or assumption of
existing financing, at non-market
terms.

All of the comparables are all cash
or cash to seller transactions and do
not warrant an adjustment.

Conditions of Sale Extraordinary motivation of buyer
or seller, assemblage, forced sale.

All of the comparables are market
transactions and do not warrant an
adjustment for conditions of sale.

Market Conditions Changes in the economic
environment over time that affect
the appreciation and depreciation
of real estate.

Home values increased significantly
leading up to the first quarter of
2022, when mortgage interest rates
began a steady increase from
historical lows (below 3%) to over
7%. While some price appreciation
was offset by rising construction
costs (materials) and labor
shortages during the pandemic,
construction costs have since
moderated. As the inventory of
available new homes continues to
deplete, and demand remains
strong, despite the higher mortgage
interest rates, home prices appear
776
Sales Comparison Approach 64
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Adjustment Factor Accounts For Comments
to be stabilizing; though, increased
incentives towards financing costs
(interest rate buy-downs) remains
prevalent in the market. Market
participants have noted that current
market values are similar to late
First Quarter 2022, which
represented the top of the market
with land values subsequently
declining due to the rising interest
rates and other economic
conditions. This has been short-
lived, as recent market interviews
suggest merchant builders were
very active leading up to the
beginning of 2025, but have been
more cautious as homebuilders are
reacting to shifting demand from
homebuyers. Comparables that
transferred in the beginning of 2024
and prior warrant an upward
adjustment unless the contract was
negotiated in the first quarter of
2022. Several sales were negotiated
prior to the dates of sale. The
contract dates of each sale were
accounted for in this analysis. For
more information of the sales
comparables, please refer to the
addenda of the report.

Location/Community
Appeal
Market or submarket area
influences on sale price;
surrounding land use influences.

The subject is located in the city of
Lincoln. All of the comparables
except Comparable 2, 3, and 5 are
considered to be in superior
locations and warrant a downward
adjustment. Conversely,
Comparables 2, 3, and 5 are located
in a slightly inferior location in the
city of Lincoln given its location
proximate to the City of Lincoln
Wastewater Treatment Plant and
warrant an upward adjustment.
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Sales Comparison Approach 65
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Adjustment Factor Accounts For Comments
Number of Lots Generally, there is an inverse
relationship between the number of
lots and price per lot such that
larger projects (with a greater
number of lots) achieve a lower
price per lot.

Typically, variances in per lot prices,
all else being equal, are not
observed in transactions between
40 and 250 lots. Comparables 4, 8,
and 9 transacted with a greater
number of lots than a typical
transaction and warrants upward
adjustments. No further
adjustments for the number of lots
is required.

Lot Size Adjustments for differences in lot
size between the comparables and
subject are considered.

Those comparables with discernably
larger lot sizes relative to the
subject’s typical lot size of 4,500
square feet, are adjusted
downward. Conversely,
comparables with smaller lot sizes
are adjusted upward.

Site Utility

Differences in contour, drainage,
soil conditions, as well as project
design, can affect the utility and
therefore, the market value of the
properties.

The subject property is considered
to have average utility. Each of the
comparables are considered to offer
similar site utility as the subject and
no additional adjustment for this
characteristic are required.

Lot Premiums/
Discounts Primary physical factors that affect
desirability of lots.

The subject has average lot
premiums/discounts. All of the
comparables have average lot
premiums/discounts and no
adjustments are warranted.

The following table summarizes the adjustments we make to the comparable sales. 778
Sales Comparison Approach 66
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Land Sales Adjustment Grid SubjectComparable 1Comparable 2Comparable 3Comparable 4Comparable 5Comparable 6Comparable 7Comparable 8Comparable 9Name City of Lincoln CFD No. 2019-1 (Independence at Lincoln)Village 15/16 - Phase 1C Placer OneFreedom at Liberty Noble at Liberty Villages 2 - 7 - Phase 1A Placer OneLegacy at Liberty Winding Creek - Villages C-6 & C-8Villages 12/13 - Phase 1B Placer OnePlacer One - Villages 8 through 11Amoruso Ranch - Phase 1 (AR-12, 13, 21, 22, 24, 25CityLincolnPlacer CountyLincolnLincolnPlacer CountyLincolnRosevillePlacer CountyPlacer CountyRosevilleCountyPlacerPlacerPlacerPlacerPlacerPlacerPlacerPlacerPlacerPlacerSale DateMay-25Jan-25Jan-25Dec-24Dec-24Nov-24Nov-24Sep-24Dec-23Sale StatusClosedClosedClosedIn-ContractClosedClosedClosedClosedClosedSale Price$25,746,975$14,960,000$9,900,000$91,335,000$15,750,000$15,280,000$21,180,000$23,591,500$52,324,392Number of Lots9220188606269680141253343Price per Lot$128,094$170,000$165,000$145,903$164,063$191,000$150,213$93,247$152,549Expenditures After Purchase$136,806$70,694$69,708$80,200$72,326$92,423$134,246$147,263$88,501Bond Consideration$6,000$6,200$6,700$5,602$6,800$6,474$6,000$6,000$6,600Price per Lot (Loaded)$270,900$246,894$241,408$231,705$243,189$289,897$290,459$246,510$247,650Property RightsFee SimpleFee SimpleFee SimpleFee SimpleFee SimpleFee SimpleFee SimpleFee SimpleFee SimpleRanking – – – – – – – – –Financing TermsCash to sellerCash to sellerCash to sellerCash to sellerCash to sellerCash to sellerCash to sellerCash to sellerCash to sellerAdjustment – – – – – – – – –Conditions of SaleMarketMarketMarketMarketMarketMarketMarketMarketMarketAdjustment – – – – – – – – –Market Conditions9/1/2025May-25Jan-25Jan-25Dec-24Dec-24Nov-24Nov-24Sep-24Dec-23Adjustment – – – Inferior – – – Inferior InferiorProperty AdjustmentsLocation/CommunityLincolnPlacer CountyLincolnLincolnPlacer CountyLincolnRosevillePlacer CountyPlacer CountyRosevilleAdjustment Superior Inferior Inferior Superior Inferior Superior Superior Superior SuperiorNumber of Lots 92 201 88 60 626 96 80 141 253 343Adjustment – – – Inferior – – – Inferior InferiorTypical Lot Size4,5003,1023,8254,2505,4664,4004,0505,0114,4263,992Adjustment Very Inferior Inferior – Superior – – – – –Site Utility Average Average Average Average Average Average Average Average Average AverageAdjustment – – – – – – – – –Lot Premiums/Discounts Average Average Average Average Average Average Average Average Average AverageAdjustment – – – – – – – – –Overall Ranking Superior Inferior Inferior Inferior Inferior Superior Superior Inferior Similar 779
Sales Comparison Approach 67
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Land Value Conclusion
The comparables reflect a range of sales prices of $93,247 to $191,000 per lot. The wide disparity in the unadjusted range is largely attributable to lot condition at time of sale (unimproved lots, partially improved lots and improved lots), as well as differences in permits and fees and bonds encumbrances.

After accounting for remaining site development costs, permits and fees and bond encumbrances, the comparables exhibit a loaded lot range of $231,705 to $290,459 per loaded lot. The following table summarizes the loaded lot values (unadjusted) and our conclusion of loaded lot value for the subject property.

Bulk Lot Ranking Summary ComparableSale Date$/ Loaded Lot (Unadjusted)Net Adjustment7Nov-24$290,459Superior6Nov-24$289,897Superior1May-25$270,900SuperiorSubject--$250,000--9Dec-23$247,650Similar2Jan-25$246,894Inferior8Sep-24$246,510Inferior5Dec-24$243,189Inferior3Jan-25$241,408Inferior4Dec-24$231,705InferiorEstimated Unit Value $250,000 There is one other recent bulk lot transfers within the city of Lincoln, located east of the subject along Nicolaus Road, there is a rolling takedown of 198 residential lots from Taylor Builders to DR Horton. A portion of the lots have transferred, while the remaining lots are anticipated to transfer in 2026. We were provided with the details of this transaction, but we were asked to keep the transaction confidential given there are remaining lots to transfer. This transaction was also considered in our determination of finished lot value for the subject’s benchmark lot category.

Primary reliance is placed on the Comparables located within the city of Lincoln as they warranted the least number of gross adjustments. The remaining comparables are considered to be good indicators of value and support the conclusion of finished lot value for the benchmark lot category.

A loaded lot indicator of $250,000 per lot appears reasonable. Deducting the subject’s permits and fees due at building permit ($71,300 per lot), yields a lot value for the subject property of $178,700 ($179,000 per lot, rounded), as calculated below.
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Sales Comparison Approach 68
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Conclusion of Value: Sales Comparison ApproachConcluded Loaded Lot Value$250,000Less: Permits & Fees($71,300)Estimated Finished Lot Value$178,700Rounded$179,000

781
Land Residual Analysis 69
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Land Residual Analysis
The land residual analysis is employed as an additional indicator of market value for the subject’s lots.

This valuation method is used in estimating land value in which all direct and indirect costs are deducted from an estimate of the anticipated gross sales price of the improved product; the resultant net sales proceeds are then discounted to present value at an anticipated rate over the development and absorption period to indicate the value of the land. The land residual analysis is conducted on a quarterly basis. As a discounted cash flow analysis, the land residual analysis consists of four primary components summarized as follows:

Revenue – the gross income is based on the sale of completed homes.

Absorption Analysis – the time frame required for sell off. Of primary importance in this analysis is the allocation of the revenue over the absorption period – including the estimation of an appreciation factor (if any).

Expenses – the expenses associated with the sell-off are calculated in this section – including direct and indirect construction costs, administration, marketing, and commission costs, as well as taxes and special taxes (if any).

Discount Rate – an appropriate discount rate is derived employing a variety of data.

Discussions of these four concepts follows below, with the discounted cash flow analysis offered at the end of this section.

Revenue
The projected sales price for the average unit within the project will vary, as the ultimate sales price is affected by unit size, location within the project, site influences, construction costs, anticipated premiums achievable at the point of retail sale, as well as external influences such as adjacent land uses.

The benchmark lot category has 92 lots with a typical lot size of 4,500 square feet. Based on the Residential Market section of this report and considering current asking prices, we estimate a typical average-sized home on the subject would contain approximately 2,250 square feet and would have a corresponding base price of $560,000. These estimates will be utilized in the analysis.

Closing Projections
The typical time required for the construction of units has been approximately three to six months from start to closing. It is assumed that initial closings will occur within three to six months of the date of sale. The premise is that the builder constructs efficiently as homes are sold. These assumptions are reflected in the projected construction schedule shown in the land residual models at the end of this section. Since the land residual analysis is conducted on a quarterly basis, closings are reflected in the following period, as most construction will be substantially completed prior to initiation of sales.

Changes in Market Conditions (Price Increases or Decreases) The subject’s market area has experienced rapid market appreciation in home prices for the past few years; however, since early 2022 the Federal Reserve Bank began raising the benchmark federal-funds 782
Land Residual Analysis 70
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) rate (from near zero in March 2022) in an effort to manage rising inflation. The fed-funds rate ranges from 4.25% to 4.50%, which has resulted in a substantial rise in mortgage interest rates, which now are approximately 6.50% and have moderated from 8.0% in October of 2023. The rise in mortgage interest rates has impacted the affordability of homes for a certain segment of the homebuyer market, which may impact pricing in the near term. Consequently, under current market conditions, forecasting home appreciation during the absorption period is speculative, and several homebuilders surveyed indicate they typically do not trend/forecast home appreciation during the sell-off period.

Therefore, for purposes of this analysis, the home price revenue will be held constant during the sell- off period.

Absorption
Typically, multiple product lines would be marketed in a subdivision to create characteristics appealing to as many potential purchasers as possible. Offering home products within a subdivision to different market segments is done with the aim of increasing absorption and reducing the overall development holding period for a project.

Based on the typical marketing and absorption rate data presented in the Residential Market overview, we estimate an absorption rate of approximately 3.0 units per month or 9 units per quarter.

Home sales begin in Period 1, and the subject lots sell out in Period 10, with Period 11 needed to complete construction and close escrow. Following the estimated absorption, this would leave two remaining units to be sold. These two units are applied to the first two periods as most homebuilders premarket their respective communities. Our disposition period for the subject lots is over the course of 2.75 years. Market conditions are anticipated to remain stable over this time.

Expense Projections
As part of an ongoing effort to assemble market information, the table below reflects survey responses and developer budget information for numerous single-family residential subdivisions throughout the Northern California region.

Information from the survey above will contribute to the estimate of development expenses classified as follows.

Subdivision BudgetsDeveloper Classification MunicipalityBudget DateNo. of Units QualityAvg. Home Size (SF)Typical Lot SizeG & A % of RevenueMkt & Sales % of RevenueDirect Costs/SFIndirect Costs/SFIndirect % of Direct CostsSite Costs/LotPermits & Fees/UnitCost per ModelProfit % of Revenue IRRProjected Sales/Mo.NationalManteca2025172Average2,5376,1470.2%0.4%N/AvN/AvN/Av$94,186$66,600N/Av14.50%25.0%5NationalRancho Cordova202555Average3,1316,300N/AvN/Av$89.90N/AvN/Av$72,436$82,900N/AvN/AvN/Av3NationalFolsom2025211Good3,2675,5463.3%1.0%N/AvN/Av10.0%$166,943$56,500N/Av26.00%N/Av4NationalPlacer County2024107Good3,6269,0002.0%1.0%$104.58N/AvN/AvN/Av$89,819N/AvN/Av20.0%N/AvNationalLincoln2024862Average2,0565,280N/AvN/Av$99.56N/AvN/Av$161,203$60,400 N/AvN/AvN/Av2.8NationalStockton2024236Average1,5005,9406.0%6.0%$119.00N/AvN/Av$131,355$42,660N/AvN/Av25.0%6NationalLincoln2024184Average2,0982,7464.5%4.5%$92.00$11.4412.43%$98,293$28,400N/Av19.00%7.0%N/AvNationalRoseville2024120Average2,1703,8253.5%3.5%$129.00N/AvN/Av$88,501$63,700N/Av13.00%N/Av4NationalDixon202485Average2,1474,800N/Av4.5%$95.47$9.7810.24%N/Av$96,000N/AvN/AvN/Av3National Elk Grove2023606Average 2,2675,784N/Av N/Av$109.88N/Av N/Av $145,000$50,798N/Av N/Av N/Av N/AvNational Elk Grove2023435Average 2,7796,096N/Av N/Av$100.15N/Av N/Av $120,000$84,203N/Av N/Av N/Av N/AvLocal Carmichael202346Average 1,4113,400N/AvN/Av$130.00$18.0013.85%$94,565$38,000N/AvN/AvN/AvN/AvNational Roseville202363Average 2,2003,9952.0%5.0%N/AvN/AvN/Av$66,480$60,883N/Av10.0%N/Av4NationalElk Grove202385Average1,8443,000N/AvN/Av$96.00N/AvN/Av$65,855 $48,588N/AvN/AvN/AvN/AvRegionalElk Grove202352Average2,6076,200N/Av5.80%$101.86$6.866.73%$164,076 $73,595N/Av10.06%N/Av4NationalRancho Cordova2023573Average2,3275,232N/AvN/Av$99.86N/Av2.50%$126,003$98,422N/Av20.00%N/Av3NationalFolsom2022919Good1,8774,7823.0%3.0%$143.00N/AvN/AvN/Av$78,522 N/AvN/Av25.0%4NationalLincoln2022159Average1,5752,275N/AvN/Av$145.64N/AvN/Av$41,811$54,100 N/Av28.0%25.0%6NationalLincoln202265Average3,4475,200N/AvN/Av$110.00N/AvN/AvN/Av$71,290 N/AvN/AvN/AvN/Av 783
Land Residual Analysis 71
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) General and Administrative
These expenses consist of management fees, liability and fire insurance, inspection fees, appraisal fees, legal and accounting fees and copying or publication costs. This expense category typically ranges from 2.5% to 4.0%, depending on length of project and if all of the categories are included in a builder’s budget. We have used 3.0% for general and administrative expenses.

Marketing and Sale
These expenses typically consist of advertising and promotion, closing costs, sales operations, and sales commissions. The expenses are expressed as a percentage of the gross sales revenue. The range of marketing and sales expenses typically found in projects within the subject’s market area is 5.0% to

6.5%. A figure of 5.0%, or 2.50% for marketing and 2.50% for sales, is estimated in the marketing and sales expense category.

Property Taxes (Ad Valorem and Special Taxes)
The subject is located within an area with an effective tax rate of 1.0402%. This amount is applied to the estimated market values and divided by the total number of units to yield an estimate of ad valorem taxes/unit/year for each phase. The tax amounts are applied to unclosed inventory over the sell-off period. Property taxes are increased by 2% per year.

The subject is within the boundary of the City of Lincoln CFD No. 2019-1 (Independence at Lincoln).

Special Taxes associated with the District, for the most recently available tax year amount to $3,194 per unit, which is utilized in the analysis, in addition to $1,525 of additional direct charges per unit.

The total tax expense is gradually reduced over the absorption period, as the land components are sold off.

HOA
There is no homeowner’s association related to the subject property.

Permits and Fees
Based on the information provided, the estimate of permits and fees for the subject are estimated at $71,300 per lot.

Direct and Indirect Construction Costs
Construction costs are generally classified into direct and indirect costs. Direct costs reflect the cost of labor and materials to build the project. Direct costs generally are lower per square foot for larger floor plans, all else being equal, due to economies of scale. Indirect items are the carrying costs and fees incurred in developing the project and during the construction cycle. Construction quality and market-segment are significant factors that affect direct construction costs. In addition, national/public builders, which are able to achieve lower costs due to the larger scale in which orders are placed, routinely achieve lower direct costs.

Conversations with homebuilders construction costs increased significantly over the course of the pandemic, but have since moderated and stabilized over the last several quarters. However, there is more uncertainty in the market as homebuilders adjust with the new tariffs. Based on the cost 784
Land Residual Analysis 72
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) comparables, and considering the product line under development, a direct cost estimate of $85.00 per square foot is applied the estimated home. This estimate is generally consistent with comparables in the market.

Regarding indirect costs, the following list itemizes some of the typical components that generally comprise indirect costs:
• Architectural and engineering fees for plans, plan checks, surveys and environmental studies • Appraisal, consulting, accounting and legal fees
• The cost of carrying the investment in land and contract payments during construction. If the property is financed, the points, fees or service charges and interest on construction loans are considered
• All-risk insurance
• The cost of carrying the investment in the property after construction is complete, but before sell-out is achieved
• Developer fee earned by the project coordinator
• Interest reserve
Conversations with homebuilders indicate the indirect costs generally range anywhere from 10% to 15% of the direct costs (excluding marketing, sales, general and administrative expenses, taxes, which are accounted for separately). An estimate of 12% is considered reasonable for the subject.

Model Complex
The developer constructed two model homes to service the subject property, which is considered to be reasonable and will be utilized in our analysis. Model upgrade expenses can vary widely depending upon construction quality, targeted market and anticipated length of time on the market. These upgrades, exterior and interior, including furniture, can range from $20,000 per model to over $250,000 per model for executive homes.

Based on the quality of the subject’s proposed improvements and the targeted buyer segment, a model upgrade cost of $50,000 per model is considered reasonable for the subject’s lots. Of this amount approximately 40% will be recaptured with the sale of the models reflecting a recapture of $20,000 per model. Model costs will be incurred in the first period while the recapture amount will be applied evenly over the disposition period.

Summary
The following chart summarizes the revenue and expenses discussed on the preceding pages. 785
Land Residual Analysis 73
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Revenue & Expense SummaryREVENUE SUMMARYNo. of Unit Base RetailFloor Plan UnitsSize (SF)$/SFValue Per UnitExtensionAverage Unit 92 2,250 $249 $560,000 $51,520,000Model Recapture (@ 40% of cost) $40,00092 2,250(weighted avg.)Total Revenue Before Appreciation: 51,560,000$ $560,435 /unitTotal Revenue After Appreciation: 51,560,000$ $560,435 /unitEXPENSES SUMMARYTotal Over Sell-Off PeriodGeneral and Administrative 3.0% of total revenue 1,546,800$ Marketing and Sales 5.0% of total revenue 2,578,000$ Ad Valorem Taxes $1,714 /unit/year 216,618$ (from cash flow)Direct Charges $1,525 /unit/year 192,724$ (from cash flow)Special Taxes/Assessments $3,194 /unit/year 403,659$ (from cash flow)Homeowner's Association Fees $0 /unit/month -$ (from cash flow)Model Costs 2 models 100,000$ $50,000 (per model)Permits and Fees 6,559,600$ $71,300 (per unit)Subtotal: 11,597,400$ Direct Construction Costs (Before Appreciation) SFUnitsCost/SFExtensionAverage/Typical Floor Plan 2,250 92 $85.00 17,595,000$ $191,250 /unitIndirect Construction Costs 12% of Direct Costs 2,111,400$ $22,950 /unitSubtotal: 19,706,400$ Total Expenses Before Appreciation: 31,303,800$ Internal Rate of Return and Discount Rate
Positive attributes of the subject property include steady demand in the market area and limited new construction. There are some “negative” attributes associated with the subject such as rising construction costs, in addition to the potential for deterioration in market conditions in the residential sector that would result from a change in macroeconomic factors (ex. continued high inflation, unemployment rates, interest rates, etc.).

Using a 5.00% present value factor and 7.00% for developer’s incentive, results in an implied internal rate of return (IRR) of 16.300%. Realty Rates provides expected Developer IRR for California developments as follows:
786
Land Residual Analysis 74
City of Lincoln CFD No. 2019-1 (Independence at Lincoln)

The survey above is primarily focused on raw land development; whereas, the subject property is analyzed herein as if improved (finished lot, or improved site, condition), which carries less risk.

Furthermore, each implied IRR for the benchmark lot category is within the range presented by the RealtyRates survey and are considered to be reasonable.

Conclusion
The land residual analysis is presented as follows:

California/Pacific Islands: Subdivisions & PUDsMinMaxAvgMinMaxAvgSite-Built Residential17.52% 38.61% 26.04% 16.82% 37.06% 25.00%-100 Units17.52%33.28%24.89%16.82%31.95%23.90%100-500 Units 17.96% 36.61% 26.19% 17.24% 35.15% 25.15%500+ Units 18.40% 38.27% 26.64% 17.66% 36.74% 25.57%Mixed Use 18.84% 38.61% 26.42% 18.08% 37.06% 25.37%Manufactured Housing18.06%42.18%27.94%17.34%40.49%26.82%-100 Units 18.06% 36.68% 26.82% 17.34% 35.21% 25.75%100-500 Units 18.51% 40.34% 28.25% 17.77% 38.73% 27.12%500+ Units18.97%42.18%28.74%18.21%40.49%27.59%Business Parks18.04% 40.29% 27.08% 17.32% 38.68% 25.99%-100 Acres 18.04% 35.04% 26.01% 17.32% 33.63% 24.97%100-500 Acres18.50%38.54%27.38%17.76%37.00%26.28%500+ Acres 18.95% 40.29% 27.84% 18.19% 38.68% 26.73%Industrial Parks18.15% 34.00% 24.28% 17.42% 32.64% 23.31%-100 Acres 18.15% 29.56% 23.38% 17.42% 28.38% 22.44%100-500 Acres18.60%32.52%24.54%17.86%31.22%23.56%500+ Acres 19.05% 34.00% 24.93% 18.29% 32.64% 23.94%3California/Pacific Islands: CA, Guam, HI Actual Rates Pro-Forma Rates*3nd Quarter 2024 DataRealty Rates Developers Survey 2024 Q4 787
Land Residual Analysis 75
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Land Residual AnalysisQuarter:01234567891011TotalABSORPTIONSales 10 10 9 9 9 9 9 9 9 9 0 92Close of Escrow (COE) 0 10 10 9 9 9 9 9 9 9 9 92Unsold Inventory928272635445362718900Sales Revenue (Before Appreciation) $ 5,604,348 $ 5,604,348 $ 5,043,913 $ 5,043,913 $ 5,043,913 $ 5,043,913 $ 5,043,913 $ 5,043,913 $ 5,043,913 $ 5,043,913 $ - Annual Appreciation Factor0%1.00001.00001.00001.00001.00001.00001.00001.00001.00001.00001.0000Sales Revenue (After Appreciation) $ 5,604,348 $ 5,604,348 $ 5,043,913 $ 5,043,913 $ 5,043,913 $ 5,043,913 $ 5,043,913 $ 5,043,913 $ 5,043,913 $ 5,043,913 $ - $ 51,560,000 Total Sales Revenue (at Close of Escrow) $ - $ 5,604,348 $ 5,604,348 $ 5,043,913 $ 5,043,913 $ 5,043,913 $ 5,043,913 $ 5,043,913 $ 5,043,913 $ 5,043,913 $ 5,043,913 $ 51,560,000 EXPENSES AND CASH FLOWSGeneral and Administrative3.0% $ (140,618) $ (140,618) $ (140,618) $ (140,618) $ (140,618) $ (140,618) $ (140,618) $ (140,618) $ (140,618) $ (140,618) $ (140,618) $ (1,546,800)Marketing and Sales5.0% $ - $ (280,217) $ (280,217) $ (252,196) $ (252,196) $ (252,196) $ (252,196) $ (252,196) $ (252,196) $ (252,196) $ (252,196) $ (2,578,000)Ad Valorem Taxes ($/unit/yr)$1,714 $ (39,424) $ (35,314) $ (31,163) $ (27,404) $ (23,606) $ (19,770) $ (15,895) $ (11,981) $ (8,027) $ (4,034) $ - $ (216,618)Direct Charges ($/unit/yr)$1,525 $ (35,075) $ (31,419) $ (27,725) $ (24,381) $ (21,002) $ (17,589) $ (14,142) $ (10,659) $ (7,142) $ (3,589) $ - $ (192,724)Special Taxes/Assessments ($/unit/yr)$3,194 $ (73,464) $ (65,807) $ (58,070) $ (51,066) $ (43,989) $ (36,841) $ (29,620) $ (22,326) $ (14,959) $ (7,517) $ - $ (403,659)Homeowner's Association Fees ($/unit/mo)$0 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Model Costs $ (100,000) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ (100,000)Permits and Fees $ (713,000) $ (713,000) $ (641,700) $ (641,700) $ (641,700) $ (641,700) $ (641,700) $ (641,700) $ (641,700) $ (641,700) $ - $ (6,559,600)Subtotal: $ (1,101,581) $ (1,266,375) $ (1,179,494) $ (1,137,364) $ (1,123,112) $ (1,108,715) $ (1,094,171) $ (1,079,481) $ (1,064,642) $ (1,049,653) $ (392,814) $(11,597,400)Direct Construction Costs $ (956,250) $ (1,912,500) $ (1,816,875) $ (1,721,250) $ (1,721,250) $ (1,721,250) $ (1,721,250) $ (1,721,250) $ (1,721,250) $ (1,721,250) $ (860,625)Annual Appreciation Factor0%1.00001.00001.00001.00001.00001.00001.00001.00001.00001.00001.0000Direct Construction Costs (Appreciated) $ (956,250) $ (1,912,500) $ (1,816,875) $ (1,721,250) $ (1,721,250) $ (1,721,250) $ (1,721,250) $ (1,721,250) $ (1,721,250) $ (1,721,250) $ (860,625) $(17,595,000)Indirect Construction Costs12% $ (114,750) $ (229,500) $ (218,025) $ (206,550) $ (206,550) $ (206,550) $ (206,550) $ (206,550) $ (206,550) $ (206,550) $ (103,275) $ (2,111,400)Subtotal: $ (1,071,000) $ (2,142,000) $ (2,034,900) $ (1,927,800) $ (1,927,800) $ (1,927,800) $ (1,927,800) $ (1,927,800) $ (1,927,800) $ (1,927,800) $ (963,900) $(19,706,400)Total Expenses $ (2,172,581) $ (3,408,375) $ (3,214,394) $ (3,065,164) $ (3,050,912) $ (3,036,515) $ (3,021,971) $ (3,007,281) $ (2,992,442) $ (2,977,453) $ (1,356,714) $(31,303,800)NET INCOME BEFORE DEVELOPER'S INCENTIVE $ (2,172,581) $ 2,195,973 $ 2,389,954 $ 1,978,749 $ 1,993,001 $ 2,007,398 $ 2,021,942 $ 2,036,632 $ 2,051,471 $ 2,066,460 $ 3,687,199 $ 20,256,200 Developers Incentive7.00% $ - $ (392,304) $ (392,304) $ (353,074) $ (353,074) $ (353,074) $ (353,074) $ (353,074) $ (353,074) $ (353,074) $ (353,074) $ (3,609,200)NET INCOME BEFORE DISCOUNTING $ (2,172,581) $ 1,803,668 $ 1,997,650 $ 1,625,675 $ 1,639,927 $ 1,654,325 $ 1,668,868 $ 1,683,559 $ 1,698,398 $ 1,713,386 $ 3,334,125 $ 16,647,000 Present Value FactorsDiscount Rate5.00%0.987650.975460.963420.951520.939780.928170.916720.905400.894220.883180.87228Discounted Cash Flow $ (2,145,759) $ 1,759,408 $ 1,924,572 $ 1,546,870 $ 1,541,166 $ 1,535,502 $ 1,529,878 $ 1,524,291 $ 1,518,742 $ 1,513,230 $ 2,908,282 $ 15,156,183 Net Present Value (Rounded) $ 15,160,000 per unit:$164,783 $ (2,172,581) $ 2,195,973 $ 2,389,954 $ 1,978,749 $ 1,993,001 $ 2,007,398 $ 2,021,942 $ 2,036,632 $ 2,051,471 $ 2,066,460 $ 3,687,199 Implied Internal Rate of Return (IRR)16.300%0.960850.923220.887080.852340.818970.786900.756090.726490.698040.670710.64445 $ (15,160,000) -2087514.996 2027375.089 2120070.596 1686572.761 1632207.936 1579628.897 1528775.506 1479589.707 1432015.461 1385998.667 2376216.389 $ 936 788
Reconciliation of Lot Value 76
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Reconciliation of Lot Value
The concluded estimates of lot value via each approach are shown on the following table. In our opinion the land residual analysis is primarily a supportive indicator for the results of sales comparison approach. We will rely on the indication of the sales comparison approach and conclude a finished lot value as follows:

Reconciliation of Finished Lot ValueSales Comparison Approach$179,000 per finished lotLand Residual Analysis$164,783 per finished lot% Difference8.63%Average$171,891 Concluded Finished Lot Value$179,000 per finished lot The subject has additional lot categories with varying lot sizes. The details of each lot category are shown in the following table. In consideration of paired sales analyses and sales agent interviews regarding premiums achieved for home sales when isolating lot size, a lot size adjustment factor of $12.00 per square foot of difference in lot area is applied to the benchmark lot values. In the following table, adjustments for differences in lot size are made to the above-concluded benchmark typical lot and applied to the subject’s additional lot size categories.

Conclusion of Finished Lot ValueUnitLot Size (SF)Benchmark Lot ValueLot Size AdjustmentAdjusted Finished Lot Value (Rounded)Unit 24,500Benchmark$179,000$179,000Unit 54,000$179,000($6,000)$173,000Unit 63,800$179,000($8,400)$171,000 789
Market Value by Ownership 77
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Market Value by Ownership
In this section, the previously concluded market values will be allocated to each ownership group comprising the appraised properties in order to provide a market value of the appraised properties by ownership and parcel. A summary of the ownership group holdings along with the current development status is provided in the following table.

Appraised Property Summary by UnitUnitsFinished SFR LotsPartially Completed HomesCompleted Homes*Homes Sold to Individuals*Appraised ParcelsAssessed ParcelsUnit 1---11121Unit 2690017022Unit 3----098Unit 4----097Unit 54012366131Unit 63011745238TOTAL139231012184407*Completed homes without a complete assessment for structural improvements by County Assessor To arrive at the market value by ownership, we apply the previously concluded finished lot value to the homes under construction because we do not consider any contributory value related to structural improvements. However, we do add the value of the permits and fees ($71,300) that have been incurred for the homes under construction.

Based on the previous analyses, the estimates of market value, by ownership, subject to the impact of the Lien of the Special Tax securing the City of Lincoln CFD No. 2019-1 (Independence at Lincoln), Series 2025 bonds, as of the date of value, September 1, 2025, are presented in the following table. 790
Market Value by Ownership 78
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Market Value by OwnershipLots/Parcels/HomesLot/Home ValuePermits and FeesValue per ComponentMarket Value (Rd.)Tri Pointe Homes Holdings Inc.Finished LotsUnit 269$179,000 -$179,000 $12,351,000 Unit 540$173,000 -$173,000 $6,920,000 Unit 630$171,000 -$171,000 $5,130,000 Homes Under ConstructionUnit 512$173,000 $71,300 $244,300 $2,932,000 Unit 611$171,000 $71,300 $242,300 $2,665,000 Completed HomesUnit 53$535,000 -$535,000 $1,605,000 (Not-Less-Than)Unit 67$485,000 -$485,000 $3,395,000 (Not-Less-Than)Bulk Market Value - Tri Pointe Homes Holdings Inc.172$34,998,000 Individual HomeownersCompleted HomesUnit 11$465,000 -$465,000 $465,000 (Not-Less-Than)Unit 21$540,000 -$540,000 $540,000 (Not-Less-Than)Unit 56$535,000 -$535,000 $3,210,000 (Not-Less-Than)Unit 64$485,000 -$485,000 $1,940,000 (Not-Less-Than)Aggregate Value - Individual Homeowners12$6,155,000 Aggregate Appraised Value, subject to a hypothetical condition184$41,153,000 Assessed ValueUnit 1121---$80,861,776 Unit 222---$14,892,667 Unit 398---$55,416,187 Unit 497---$49,638,157 Unit 531---$20,453,706 Unit 638---$22,080,769 Aggregate, or Cumulative, Assessed Values407$243,343,262 Total Aggregate, or Cumulative, Value - City of Lincoln CFD No. 2019-1 (Independence at Lincoln)591 $284,496,262

Exposure Time
Exposure time is the length of time the subject property would have been exposed for sale in the market had it sold on the effective valuation date at the concluded market value. Exposure time is always presumed to precede the effective date of the appraisal. Based on our review of recent sales transactions for similar properties and our analysis of supply and demand in the local residential land market, it is our opinion that the probable exposure time for the subject at the concluded market 791
Market Value by Ownership 79
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) values stated previously is 9-12 months. As it relates to the completed home component of the subject, current market conditions indicate that 30-to-60-day exposure period is reasonable.

Marketing Time
Marketing time is an estimate of the amount of time it might take to sell a property at the concluded market value immediately following the effective date of value. As we foresee no significant changes in market conditions in the near term, it is our opinion that a reasonable marketing period for the subject in bulk is likely to be the same as the exposure time. Accordingly, we estimate the subject’s marketing period at 9-12 months.

792
Certification 80
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Certification
We certify that, to the best of our knowledge and belief:

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

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

3. We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved.

4. We have previously appraised the property that is the subject of this report for the current client. We have provided no other services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding the agreement to perform this assignment.

5. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

6. Our engagement in this assignment was not contingent upon developing or reporting predetermined results.

7. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

8. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice as well as applicable state appraisal regulations.

9. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.

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

11. Blake Fassler and Eric Segal, MAI, made a personal inspection of the property that is the subject of this report. Kevin Ziegenmeyer, MAI, has not personally inspected the subject.

12. No one provided significant real property appraisal assistance to the person(s) signing this certification.

13. We have experience in appraising properties similar to the subject and are in compliance with the Competency Rule of USPAP.

14. As of the date of this report, Kevin Ziegenmeyer, MAI, and Eric Segal, MAI, have completed the continuing education program for Designated Members of the Appraisal Institute.

793
Certification 81
City of Lincoln CFD No. 2019-1 (Independence at Lincoln)

15. As of the date of this report, Blake Fassler, has completed the Standards and Ethics Education Requirements for Candidates/Practicing Affiliates of the Appraisal Institute.

Blake Fassler
Certified General Real Estate Appraiser
California Certificate # 3007274
Kevin Ziegenmeyer, MAI
Certified General Real Estate Appraiser
California Certificate # AG013567

Eric Segal, MAI
Certified General Real Estate Appraiser
California Certificate # AG026558

794
Assumptions and Limiting Conditions 82
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Assumptions and Limiting Conditions
This appraisal and any other work product related to this engagement are limited by the following standard assumptions, except as otherwise noted in the report:

1. The title is marketable and free and clear of all liens, encumbrances, encroachments, easements and restrictions. The property is under responsible ownership and competent management and is available for its highest and best use.

2. There are no existing judgments or pending or threatened litigation that could affect the value of the property.

3. There are no hidden or undisclosed conditions of the land or of the improvements that would render the property more or less valuable. Furthermore, there is no asbestos in the property.

4. The revenue stamps placed on any deed referenced herein to indicate the sale price are in correct relation to the actual dollar amount of the transaction.

5. The property is in compliance with all applicable building, environmental, zoning, and other federal, state and local laws, regulations and codes.

6. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy.

This appraisal and any other work product related to this engagement are subject to the following limiting conditions, except as otherwise noted in the report:

1. An appraisal is inherently subjective and represents our opinion as to the value of the property appraised.

2. The conclusions stated in our appraisal apply only as of the effective date of the appraisal, and no representation is made as to the effect of subsequent events.

3. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated.

4. No environmental impact studies were either requested or made in conjunction with this appraisal, and we reserve the right to revise or rescind any of the value opinions based upon any subsequent environmental impact studies. If any environmental impact statement is required by law, the appraisal assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies.

5. Unless otherwise agreed to in writing, we are not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the property without compensation relative to such additional employment.

6. We have made no survey of the property and assume no responsibility in connection with such matters. Any sketch or survey of the property included in this report is for illustrative purposes only and should not be considered to be scaled accurately for size. The appraisal

795
Assumptions and Limiting Conditions 83
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) covers the property as described in this report, and the areas and dimensions set forth are assumed to be correct.

7. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and we have assumed that the property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in our appraisal.

8. We accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations such as soils and seismic stability; and civil, mechanical, electrical, structural and other engineering and environmental matters. Such considerations may also include determinations of compliance with zoning and other federal, state, and local laws, regulations and codes.

9. The distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context.

10. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the persons signing the report.

11. Information, estimates and opinions contained in the report and obtained from third-party sources are assumed to be reliable and have not been independently verified.

12. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute predictions of future operating results.

13. If the property is subject to one or more leases, any estimate of residual value contained in the appraisal may be particularly affected by significant changes in the condition of the economy, of the real estate industry, or of the appraised property at the time these leases expire or otherwise terminate.

14. Unless otherwise stated in the report, no consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property; only the real property has been considered.

15. The current purchasing power of the dollar is the basis for the values stated in the appraisal; we have assumed that no extreme fluctuations in economic cycles will occur.

16. The values found herein are subject to these and to any other assumptions or conditions set forth in the body of this report but which may have been omitted from this list of Assumptions and Limiting Conditions.

17. The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic 796
Assumptions and Limiting Conditions 84
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by our analysis will vary from our estimates, and the variations may be material.

18. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific survey or analysis of the property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. We claim no expertise in ADA issues, and render no opinion regarding compliance of the subject with ADA regulations.

Inasmuch as compliance matches each owner’s financial ability with the cost to cure the non- conforming physical characteristics of a property, a specific study of both the owner’s financial ability and the cost to cure any deficiencies would be needed for the Department of Justice to determine compliance.

19. The appraisal report is prepared for the exclusive benefit of the Client, its subsidiaries and/or affiliates. It may not be used or relied upon by any other party. All parties who use or rely upon any information in the report without our written consent do so at their own risk.

20. No studies have been provided to us indicating the presence or absence of hazardous materials on the subject property or in the improvements, and our valuation is predicated upon the assumption that the subject property is free and clear of any environment hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the subject property. Integra Realty Resources – Sacramento, Integra Realty Resources, Inc., Integra Strategic Ventures, Inc. and/or any of their respective officers, owners, managers, directors, agents, subcontractors or employees (the “Integra Parties”), shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of environmental conditions, the appraisal report cannot be considered as an environmental assessment of the subject property.

21. The persons signing the report may have reviewed available flood maps and may have noted in the appraisal report whether the subject property is located in an identified Special Flood Hazard Area. We are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the value of the property, and the value conclusion is predicated on the assumption that wetlands are non- existent or minimal.

22. Integra Realty Resources – Sacramento is not a building or environmental inspector. Integra Sacramento does not guarantee that the subject property is free of defects or environmental problems. Mold may be present in the subject property and a professional inspection is recommended.

23. The appraisal report and value conclusions for an appraisal assume the satisfactory completion of construction, repairs or alterations in a workmanlike manner.

24. It is expressly acknowledged that in any action which may be brought against any of the Integra Parties, arising out of, relating to, or in any way pertaining to this engagement, the 797
Assumptions and Limiting Conditions 85
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) appraisal reports, and/or any other related work product, the Integra Parties shall not be responsible or liable for any incidental or consequential damages or losses, unless the appraisal was fraudulent or prepared with intentional misconduct. It is further acknowledged that the collective liability of the Integra Parties in any such action shall not exceed the fees paid for the preparation of the appraisal report unless the appraisal was fraudulent or prepared with intentional misconduct. Finally, it is acknowledged that the fees charged herein are in reliance upon the foregoing limitations of liability.

25. Integra Realty Resources – Sacramento, an independently owned and operated company, has prepared the appraisal for the specific intended use stated elsewhere in the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided. Accordingly, the appraisal report is addressed to and shall be solely for the Client’s use and benefit unless we provide our prior written consent. We expressly reserve the unrestricted right to withhold our consent to your disclosure of the appraisal report or any other work product related to the engagement (or any part thereof including, without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless our prior written consent is obtained, no third party may rely on the appraisal report (even if their reliance was foreseeable).

26. The conclusions of this report are estimates based on known current trends and reasonably foreseeable future occurrences. These estimates are based partly on property information, data obtained in public records, interviews, existing trends, buyer-seller decision criteria in the current market, and research conducted by third parties, and such data are not always completely reliable. The Integra Parties are not responsible for these and other future occurrences that could not have reasonably been foreseen on the effective date of this assignment. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. While we are of the opinion that our findings are reasonable based on current market conditions, we do not represent that these estimates will actually be achieved, as they are subject to considerable risk and uncertainty. Moreover, we assume competent and effective management and marketing for the duration of the projected holding period of this property.

27. All prospective value opinions presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph, several events may occur that could substantially alter the outcome of our estimates such as, but not limited to changes in the economy, interest rates, and capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future.

28. The appraisal is also subject to the following:
798
Assumptions and Limiting Conditions 86
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Extraordinary Assumptions and Hypothetical Conditions(None)1. The value derived herein is based on the hypothetical condition that certain public improvements to be reimbursed by the CFD No. 2019-1 Special Tax Bonds, Series 2025, have been paid.The use of any extraordinary assumption or hypothetical condition may have affected the assignment results.The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.

799
Addenda
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Addendum A
Appraiser Qualifications
800
Integra Realty Resources -
Sacramento
irr.com
516 Gibson Drive
Suite 290
Roseville, CA 95678
Blake Fassler
Experience
Mr. Fassler is a licensed appraiser with Integra Realty Resources, a real estate appraisal firm that engages in a wide variety of real estate valuation and consultation assignments.

He began his appraisal career in March 2017 with Seevers Jordan Ziegenmeyer in Rocklin, California. Currently, Mr. Fassler is obtaining experience in the valuation and analysis of various types of real estate by working on a wide variety of property typed including, but not limited to: multifamily, office, retail, industrial, vacant land, and residential subdivisions. He also specializes in the
appraisal of residential master planned communities and subdivision, as well as Mello Roos and Assessment Districts for land secured municipal financings.

Licenses
California, California Certified General Real Estate Appraiser, 3007274, Expires February 2026
Education
Bachelor of Science in Management Science University of California, San Diego Appraisal Courses Completed are as follows:

Basic Appraisal Principles
Basic Appraisal Procedures
General Appraiser Market Analysis & Highest and Best Use (USPAP), Uniform Standards of Professional Appraisal Practice General Appraiser Report Writing and Case Studies
General Appraiser Site Valuation and Cost Approach
General Appraiser Sales Comparison Approach
General Appraiser Income Approach Part 1
General Appraiser Income Approach Part 2
4-Hour Federal and California Statutory and Regulator Laws [email protected] - 916-435-3883
801
802
Integra Realty Resources -
Sacramento
irr.com
T 916.435.3883
F 916.435.4774
516 Gibson Drive
Suite 290
Roseville, CA 95678
Kevin Ziegenmeyer, MAI
Experience
Mr. Ziegenmeyer is a Certified General real estate appraiser and holds the Appraisal Institute's MAI designation. In 1989, Mr. Ziegenmeyer began his career in real estate as a controller for a commercial and residential real estate development corporation. In 1991 he began appraising and continued to be involved in appraisal assignments covering a wide variety of properties, including office, retail, industrial, residential income and subdivisions throughout the state of California, and Northern Nevada. Mr. Ziegenmeyer handles many of the firm’s master planned property appraisals and over the past two decades has developed expertise in the valuation of Community Facilities Districts and Assessment Districts.In fact, Mr. Ziegenmeyer was one of five appraisers to collaborate with other professionals in developing the appraisal guidelines for the California Debt and Investment Advisory Commission (Recommended Practices in the Appraisal of Real Estate for Land Secured Financing 2004). He has developed the experience and background necessary to deal with complex assignments covering an array of property types, with a particular focus on urban redevelopment in the cities and counties of San Francisco, Dublin, Monterey, Newport Beach, Alameda, Napa and San Mateo. In early 2015, Mr. Ziegenmeyer obtained the Appraisal Institute's MAI designation. Mr.

Ziegenmeyer is currently Senior Managing Director of the Integra-Sacramento office, and Managing Director of the Integra-Orange County, Integra-San Francisco and Integra-Los Angeles offices.

Licenses
California, California Certified General Real Estate Appraiser, AG013567, Expires June 2027
Education
Academic:

Bachelor of Science in Accounting, Azusa Pacific University, California

Appraisal and Real Estate Courses:

Standards of Professional Practice, Parts A, B & C
Basic Valuation Procedures
Real Estate Appraisal Principles
Capitalization Theory and Techniques, Part A
Advanced Income Capitalization
Report Writing and Valuation Analysis
Advanced Applications
IRS Valuation Summit I & II
2008, 2009, 2010 & 2011 Economic Forecast
Business Practices and Ethics
Contemporary Appraisal Issues with Small Business Administration Financing General Demonstration Appraisal Report Writing Seminar
7-Hour National USPAP Update Course
Valuation of Easements and Other Partial Interests
2009 Summer Conference
Uniform Appraisal Standards for Federal Land Acquisitions (Yellowbook) 2008 Economic Update
Valuation of Conservation Easements
[email protected] - 916.435.3883 x224
803
Integra Realty Resources -
Sacramento
irr.com
T 916.435.3883
F 916.435.4774
516 Gibson Drive
Suite 290
Roseville, CA 95678
Kevin Ziegenmeyer, MAI
Education (Cont'd)
Subdivision Valuation
2005 Annual Fall Conference
General Comprehensive Exam Module I, II, III & IV
Advanced Income Capitalization
Advanced Sales Comparison & Cost Approaches
2004 Central CA Market Update
Computer-Enhanced Cash Flow Modeling
Forecast 2000, 2001, 2002, 2003 & 2004
Land Valuation Assignments
Land Valuation Adjustment Procedures
Highest & Best Use and Market Analysis
Entitlements, Land Subdivision & Valuation
Real Estate Value Cycles
El Dorado Hills Housing Symposium
Federal Land Exchanges
M & S Computer Cost-Estimating, Nonresidential
[email protected] - 916.435.3883 x224
804
805
Integra Realty Resources - Los
Angeles (219)
irr.com
T 916.435.3883
F 916.435.4774
12100 Wilshire Blvd
Suite 800
Los Angeles, CA 90025
Eric Segal, MAI
Experience
Mr. Segal is a Certified General real estate appraiser and holds the Appraisal Institute's MAI designation. In 1998, Mr. Segal began his career in real estate as a research analyst/appraiser trainee for Richard Seevers and Associates. By 1999, he began writing narrative appraisal reports covering a variety of commercial properties, with an emphasis on residential master planned communities and subdivisions. Today, Mr. Segal is a partner in the firm and is involved in appraisal assignments covering a wide variety of properties including office, retail, industrial, multifamily housing, master planned communities, and specializes in the appraisal of Mello Roos Community Facilities Districts and Assessment Districts for land secured municipal financings, as well as multifamily developments under the U.S. Department of Housing and Urban Development’s Multifamily Accelerated Processing (MAP) Guide. He has developed the experience and background necessary to deal with complex assignments covering an array of property types, with a particular focus on urban redevelopment in the cities of San Francisco, Oakland, Monterey, Alameda and San Mateo. He has developed the experience and background necessary to deal with complex assignments covering an array of property types. Eric is currently Senior Managing Director of the Integra Los Angeles office, and Managing Director of the Integra Orange County, Integra-San Francisco and Integra-Sacramento offices.

Professional Activities & Affiliations
MAI Designation, Appraisal Institute Appraisal Institute, January 2016 Licenses
California, Certified General Real Estate Appraiser, AG026558, Expires February 2027 Nevada, Certified General, A.0207666-CG, Expires January 2027 Arizona, Certified General, CGA - 1006422, Expires January 2026 Washington, Certified General, 20100611, Expires June 2025 Education
Academic:

Bachelor of Science in Business Administration (Concentrations in Finance and Real Estate & Land Use Affairs), California State University, Sacramento

Appraisal and Real Estate Courses:

Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book) Uniform Standards of Professional Appraisal Practice
Appraisal Principles
Basic Income Capitalization
Highest & Best Use and Market Analysis
Advanced Income Capitalization
Report Writing and Valuation Analysis
Self Storage Economics and Appraisal Seminar
Appraisal Litigation Practice and Courtroom Management
Hotel Valuations: New Techniques for today’s Uncertain Times Computer Enhanced Cash Flow Modeling
Advanced Sales Comparison & Cost Approaches
[email protected] - 916.435.3883 x228
806
Integra Realty Resources - Los
Angeles (219)
irr.com
T 916.435.3883
F 916.435.4774
12100 Wilshire Blvd
Suite 800
Los Angeles, CA 90025
Eric Segal, MAI
Education (Cont'd)
Advanced Applications
Subdivision Valuation
Appraisal of Self-Storage Facilities
Appraisal of Fast Food Facilities
Appraisal of Limited Service Hotels
How Tenants Create or Destroy Value: Leasehold Valuation and its Impact on Value Appraisal of Manufactured Homes Featuring Next Generation Manufactured Homes Appraisal and Real Estate Courses (cont’d):

Business Practices and Ethics
IRS Valuation Update
[email protected] - 916.435.3883 x228
807
808

About IRR
Integra Realty Resources, Inc. (IRR) provides world-class commercial real estate valuation, counseling, and advisory services. Routinely ranked among leading property valuation and consulting firms, we are now the largest independent firm in our industry in the United States, with local offices coast to coast and in the Caribbean.

IRR offices are led by MAI-designated Senior Managing Directors, industry leaders who have over 25 years, on average, of commercial real estate experience in their local markets. This experience, coupled with our understanding of how national trends affect the local markets, empowers our clients with the unique knowledge, access, and historical perspective they need to make the most informed decisions.

Many of the nation's top financial institutions, developers, corporations, law firms, and government agencies rely on our professional real estate opinions to best understand the value, use, and feasibility of real estate in their market.

Local Expertise...Nationally!
irr.com

809
Addenda
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Addendum B
Definitions
810
Addenda
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Definitions
The source of the following definitions is the Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015), unless otherwise noted.

As Is Market Value
The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.

Disposition Value
The most probable price that a specified interest in property should bring under the following conditions:

1. Consummation of a sale within a specified time, which is shorter than the typical exposure time for such a property in that market.

2. The property is subjected to market conditions prevailing as of the date of valuation.

3. Both the buyer and seller are acting prudently and knowledgeably.

4. The seller is under compulsion to sell.

5. The buyer is typically motivated.

6. Both parties are acting in what they consider to be their best interests.

7. An adequate marketing effort will be made during the exposure time.

8. Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto.

9. The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

This definition can also be modified to provide for valuation with specified financing terms.

Effective Date

1. The date on which the appraisal or review opinion applies.

2. In a lease document, the date upon which the lease goes into effect.

Entitlement
In the context of ownership, use, or development of real estate, governmental approval for annexation, zoning, utility extensions, number of lots, total floor area, construction permits, and occupancy or use permits.

Entrepreneurial Profit

1. A market-derived figure that represents the amount an entrepreneur receives for his or her contribution to a project and risk; the difference between the total cost of a property (cost of

811
Addenda
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) development) and its market value (property value after completion), which represents the entrepreneur’s compensation for the risk and expertise associated with development. An entrepreneur is motivated by the prospect of future value enhancement (i.e., the entrepreneurial incentive). An entrepreneur who successfully creates value through new development, expansion, renovation, or an innovative change of use is rewarded by entrepreneurial profit. Entrepreneurs may also fail and suffer losses.

2. In economics, the actual return on successful management practices, often identified with coordination, the fourth factor of production following land, labor, and capital; also called entrepreneurial return or entrepreneurial reward.

Exposure Time

1. The time a property remains on the market.

2. The estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective opinion based on an analysis of past events assuming a competitive and open market.

Floor Area Ratio (FAR)
The relationship between the above-ground floor area of a building, as described by the zoning or building code, and the area of the plot on which it stands; in planning and zoning, often expressed as a decimal, e.g., a ratio of 2.0 indicates that the permissible floor area of a building is twice the total land area.

Highest and Best Use

1. The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity.

2. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset’s existing use or for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willing to bid. (ISV)

3. [The] highest and most profitable use for which the property is adaptable and needed or likely to be needed in the reasonably near future. (Uniform Appraisal Standards for Federal Land Acquisitions)

812
Addenda
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Investment Value

1. The value of a property to a particular investor or class of investors based on the investor’s specific requirements. Investment value may be different from market value because it depends on a set of investment criteria that are not necessarily typical of the market.

2. The value of an asset to the owner or a prospective owner for individual investment or operational objectives.

Lease
A contract in which rights to use and occupy land, space, or structures are transferred by the owner to another for a specified period of time in return for a specified rent.

Leased Fee Interest
The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires.

Leasehold Interest
The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease.

Liquidation Value
The most probable price that a specified interest in real property should bring under the following conditions:

1. Consummation of a sale within a short time period.

2. The property is subjected to market conditions prevailing as of the date of valuation.

3. Both the buyer and seller are acting prudently and knowledgeably.

4. The seller is under extreme compulsion to sell.

5. The buyer is typically motivated.

6. Both parties are acting in what they consider to be their best interests.

7. A normal marketing effort is not possible due to the brief exposure time.

8. Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto.

9. The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

This definition can also be modified to provide for valuation with specified financing terms.

Marketing Time
An opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of an appraisal.

Marketing time differs from exposure time, which is always presumed to precede the effective date of an appraisal.

813
Addenda
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Market Value
The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
 buyer and seller are typically motivated;
 both parties are well informed or well advised, and acting in what they consider their own best interests;
 a reasonable time is allowed for exposure in the open market;  payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and
 the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (Source: Code of Federal Regulations, Title 12, Chapter I, Part 34.42[g]; also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77472) Prospective Opinion of Value
A value opinion effective as of a specified future date. The term does not define a type of value.

Instead, it identifies a value opinion as being effective at some specific future date. An opinion of value as of a prospective date is frequently sought in connection with projects that are proposed, under construction, or under conversion to a new use, or those that have not yet achieved sellout or a stabilized level of long-term occupancy.

814
Addenda
City of Lincoln CFD No. 2019-1 (Independence at Lincoln) Addendum C
Preliminary Title Report
815

CLTA Preliminary Report Form Order Number: 0192-6820878 (Rev. 11/06) Page Number: 1

First American Title

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First American Title Company
1001 Galaxy Way, Suite 315
Concord, CA 94520
California Department of Insurance License No. 151

Title Officer: Julie Grace
Phone: (925)738-4053
Fax No.: (925)671-9437
E-Mail: [email protected]

Owner: Arroyo Cap III-1, LLC

Property: Independence at Lincoln Unit No. 2, Portion APNs 021-740- 025-000, 021-740-026-000
Lincoln, CA

PRELIMINARY REPORT
In response to the above referenced application for a policy of title insurance, this company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception below or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said Policy forms.

The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said policy or policies are set forth in Exhibit A attached. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the CLTA and ALTA Homeowner's Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in Exhibit A. Copies of the policy forms should be read. They are available from the office which issued this report.

Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Exhibit A of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered.

It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land.

Please be advised that any provision contained in this document, or in a document that is attached, linked or referenced in this document, that under applicable law illegally discriminates against a class of individuals based upon personal characteristics such as race, color, religion, sex, sexual orientation, gender identity, familial status, disability, national origin, or any other legally protected class, is illegal and unenforceable by law.

This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested.

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Page Number: 2

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Dated as of April 01, 2022 at 7:30 A.M.

The form of Policy of title insurance contemplated by this report is:

To Be Determined
A specific request should be made if another form or additional coverage is desired.

Title to said estate or interest at the date hereof is vested in:

ARROYO CAP III-1, LLC, A DELAWARE LIMITED LIABILITY COMPANY The estate or interest in the land hereinafter described or referred to covered by this Report is:

Fee
The Land referred to herein is described as follows:

(See attached Legal Description)

At the date hereof exceptions to coverage in addition to the printed Exceptions and Exclusions in said policy form would be as follows:

1. General and special taxes and assessments for the fiscal year 2022-2023, a lien not yet due or payable.

2. All taxes - secured, supplemental, defaulted, escaped and including bonds and assessments are not available at this time. Please verify any/all tax amounts and assessment information with the County Tax Collector prior to the close of the contemplated transaction.

Affects: Portion of the land and other property

3. The lien of special tax assessed pursuant to Chapter 2.5 commencing with Section 53311 of the California Government Code for Community Facilities District No. 2018-1 (CITY MAINTENANCE SERVICES), as disclosed by Notice of Special Tax Lien recorded October 10, 2018 as Instrument No. 2018-0073309 of official records.

Document(s) declaring modifications thereof recorded May 13, 2019 as Instrument No. 2019- 0031023 of Official Records.

4. The lien of special tax assessed pursuant to Chapter 2.5 commencing with Section 53311 of the California Government Code for Community Facilities District No. 2018-2 (PUBLIC SERVICES), as disclosed by Notice of Special Tax Lien recorded October 10, 2018 as Instrument No. 2018-0073310 of official records.
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Page Number: 3

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5. The lien of special tax assessed pursuant to Chapter 2.5 commencing with Section 53311 of the California Government Code for Community Facilities District No. 2019-1, as disclosed by Notice of Special Tax Lien recorded October 15, 2019 as Instrument No. 2019-0080492 of official records.

Document(s) declaring modifications thereof recorded May 18, 2021 as Instrument No. 2021- 0066582 of Official Records.

6. The lien of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with Section 75 of the California Revenue and Taxation Code.

7. An easement shown or dedicated on the Map as referred to in the legal description

For: Park, Public Utility and incidental purposes.

The City does not accept said irrevocable offers of dedication at this time, but reserves the right to do so in the future, as per City Clerk's Statement.

Affects: Portion of Lots A and B
The effect of a document entitled "Irrevocable Offer of Dedication for Park Lots", recorded October 18, 2021 as Instrument No. 2021-0128589 of Official Records.

8. An easement shown or dedicated on the Map as referred to in the legal description

For: Public road purposes and incidental purposes.

The City does not accept said irrevocable offers of dedication at this time, but reserves the right to do so in the future, as per City Clerk's Statement.

Affects: Lots 2 and 5
The terms and provisions contained in the document entitled "Certificate of Acceptance Easement for Public Road Purposes" recorded October 18, 2021 as Instrument No. 2021-0128583 of Official Records.

9. The following matters shown or disclosed by the filed or recorded map referred to in the legal description:

We hereby relinquish and waive our priority to any and all groundwater associated with the real property included within Lots 2, 5 and Lots A and B, as shown on this map of "Independence at Lincoln" as against any rights to this groundwater that may now or hereinafter be asserted by the City of Lincoln.

Development of any property within Lots 2 and 5 shown hereon, may require significant on and offsite improvements.

Property is subject to restrictions of the Lincoln Regional Airport Land Use Compatibility Plan.

10. The terms and provisions contained in the document entitled "City of Lincoln Mixed Use Parcel Annexation and Tax Authorization Deferral Agreement Independence at Lincoln" recorded September 26, 2019 as Instrument No. 2019-0073901 of official records. 818

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11. The terms and provisions contained in the document entitled "Public Improvement Agreement" recorded October 30, 2019 as Instrument No. 2019-0085892 of official records.

12. The Terms, Provisions and Easement(s) contained in the document entitled "Grant of Avigation Easement" recorded December 15, 2020 as Instrument No. 2020-0147211-00 of Official Records.

The location of the easement cannot be determined from record information.

13. Covenants, conditions, restrictions and easements in the document recorded December 15, 2020 as Instrument No. 2020-0147212-00 of Official Records, which provide that a violation thereof shall not defeat or render invalid the lien of any first mortgage or deed of trust made in good faith and for value, but deleting any covenant, condition, or restriction, if any, indicating a preference, limitation, or discrimination based on race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, familial status, marital status, disability, handicap, veteran or military status, genetic information, national origin, source of income as defined in subdivision (p) of Section 12955, or ancestry, to the extent that such covenants, conditions or restrictions violate applicable state or federal laws. Lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status.

14. The terms and provisions contained in the document entitled "Public Improvement Agreement" recorded June 9, 2021 as Instrument No. 2021-0076070 of Official Records.

15. The terms and provisions contained in the document entitled "Public Improvement Agreement" recorded June 09, 2021 as Instrument No. 2021-0076071 of Official Records.

Affects: Lot 5

16. The terms and provisions contained in the document entitled "Public Improvement Agreement" recorded June 09, 2021 as Instrument No. 2021-0076072 of Official Records.

Affects: Lot 5

17. The terms and provisions contained in the document entitled "Public Improvement Agreement" recorded June 09, 2021 as Instrument No. 2021-0076073 of Official Records.

Affects: Lot 5

18. An easement for Public Utility Easements and incidental purposes, recorded August 26, 2021 as Instrument No. 2021-0108385 of Official Records.

In Favor of: City of Lincoln, a Municipal corporation
Affects: Lots 2 and 5

19. An easement for Public Street and Highway and incidental purposes, recorded August 26, 2021 as Instrument No. 2021-0108386 of Official Records.

In Favor of: City of Lincoln, a Municipal corporation
Affects: Lots 2 and 5

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20. An easement for Public Waterline and Sewer Easement and incidental purposes, recorded August 26, 2021 as Instrument No. 2021-0108387 of Official Records.

In Favor of: City of Lincoln, a Municipal corporation
Affects: Lots 2 and 5

21. A deed of trust to secure the performance of an agreement or other obligation, recorded December 27, 2021 as Instrument No. 2021-0155223 of Official Records.

Dated: December 23, 2021
Trustor: Arroyo Cap III-1, LLC, a Delaware limited liability company Trustee: Fidelity Title Insurance Company
Beneficiary: Lewis Land Developers, LLC, a Delaware limited liability company

Affects: The land and other property.

a. If this deed of trust is to be eliminated in the policy or policies contemplated by this report/commitment, the company will require the following for review prior to the recordation of any documents or the issuance of any policy of title insurance:
i. Original note and deed of trust.
ii. Payoff demand statement signed by all present beneficiaries. iii. Request for reconveyance or substitution of trustee and full reconveyance must be signed by all present beneficiaries and must be notarized by a First American approved notary.

b. If the payoff demand statement or the request for reconveyance is to be signed by a servicer, we will also require a full copy of the loan servicing agreement executed by all present beneficiaries.

c. If any of the beneficial interest is presently held by trustees under a trust agreement, we will require a certification pursuant to Section 18100.5 of the California Probate Code in a form satisfactory to the Company.

22. A deed of trust to secure an original indebtedness of $40,710,651.00 recorded December 27, 2021 as Instrument No. 2021-0155224 of Official Records.

Dated: December 23, 2021
Trustor: Arroyo Cap III-1, LLC, a Delaware limited liability company Trustee: Fidelity National Title Company
Beneficiary: Lewis Land Developers, LLC, a Delaware limited liability company

Affects: The land and other property.

Order Number: 0192-6820878
Page Number: 6

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23. Covenants, conditions, restrictions and easements in the document recorded December 27, 2021 as Instrument No. 2021-0155225 of Official Records, which provide that a violation thereof shall not defeat or render invalid the lien of any first mortgage or deed of trust made in good faith and for value, but deleting any covenant, condition, or restriction, if any, indicating a preference, limitation, or discrimination based on race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, familial status, marital status, disability, handicap, veteran or military status, genetic information, national origin, source of income as defined in subdivision (p) of Section 12955, or ancestry, to the extent that such covenants, conditions or restrictions violate applicable state or federal laws. Lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status.

24. An option in favor of Tri Pointe Homes Holdings, Inc., a Delaware corporation as contained in or disclosed by a document recorded December 27, 2021 as Instrument No. 2021-0155226 of Official Records.

25. Rights of the public in and to that portion of the Land lying within any Road, Street, Alley or Highway.

26. Water rights, claims or title to water, whether or not shown by the Public Records.

27. Rights of parties in possession.

Prior to the issuance of any policy of title insurance, the Company will require:

28. With respect to ARROYO CAP III-1, LLC, a Delaware limited liability company:
a. A copy of its operating agreement and any amendments thereto; b. If it is a California limited liability company, that a certified copy of its articles of organization (LLC- 1) and any certificate of correction (LLC-11), certificate of amendment (LLC-2), or restatement of articles of organization (LLC-10) be recorded in the public records; c. If it is a foreign limited liability company, that a certified copy of its application for registration (LLC-5) be recorded in the public records;
d. With respect to any deed, deed of trust, lease, subordination agreement or other document or instrument executed by such limited liability company and presented for recordation by the Company or upon which the Company is asked to rely, that such document or instrument be executed in accordance with one of the following, as appropriate:
(i) If the limited liability company properly operates through officers appointed or elected pursuant to the terms of a written operating agreement, such document must be executed by at least two duly elected or appointed officers, as follows: the chairman of the board, the president or any vice president, and any secretary, assistant secretary, the chief financial officer or any assistant treasurer; (ii) If the limited liability company properly operates through a manager or managers identified in the articles of organization and/or duly elected pursuant to the terms of a written operating agreement, such document must be executed by at least two such managers or by one manager if the limited liability company properly operates with the existence of only one manager. e. Other requirements which the Company may impose following its review of the material required herein and other information which the Company may require

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INFORMATIONAL NOTES

Note: The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than the certain dollar amount set forth in any applicable arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. If you desire to review the terms of the policy, including any arbitration clause that may be included, contact the office that issued this Commitment or Report to obtain a sample of the policy jacket for the policy that is to be issued in connection with your transaction.

1. General and special taxes and assessments for the fiscal year 2021-2022.

First Installment: $5,023.92, PAID
Penalty: $0.00
Second Installment: $5,023.92, PAID
Penalty: $0.00
Tax Rate Area: 003005
A. P. No.: 021-740-016-000

(Affects Portion of the land and other property)

2. General and special taxes and assessments for the fiscal year 2021-2022.

First Installment: $4,984.49, PAID
Penalty: $0.00
Second Installment: $4,984.49, PAID
Penalty: $0.00
Tax Rate Area: 003005
A. P. No.: 021-740-019-000

(Affects Portion of the land and other property)

3. The property covered by this report is vacant land.

4. According to the public records, there has been no conveyance of the land within a period of twenty four months prior to the date of this report, except as follows:

A document recorded December 27, 2021 as Instrument No. 2021-0155222 of Official Records.

From: Lewis Land Developers, LLC, a Delaware limited liability company To: Arroyo Cap III-1, LLC, a Delaware limited liability company

A correction Grant Deed recorded to correct the legal description on May 3, 2022, Instrument No. 2022-0038205, Official Records.

The map attached, if any, may or may not be a survey of the land depicted hereon. First American expressly disclaims any liability for loss or damage which may result from reliance on this map except to the extent coverage for such loss or damage is expressly provided by the terms and provisions of the title insurance policy, if any, to which this map is attached. 822

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LEGAL DESCRIPTION

Real property in the City of Lincoln , County of Placer, State of California, described as follows:

BEING ALL OF LOT 2 OF THAT CERTAIN MAP TITLED "LARGE LOT FINAL MAP INDEPENDENCE AT LINCOLN", FILED IN BOOK EE OF MAPS, AT PAGE 65, OFFICIAL RECORDS OF PLACER COUNTY, SITUATED WITHIN SECTION 17, TOWNSHIP 12 NORTH, RANGE 6 EAST, MOUNT DIABLO MERIDIAN,

LOCATED IN THE CITY OF LINCOLN, COUNTY OF PLACER, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

TOGETHER WITH A PORTION OF LOT B, AS SHOWN ON SAID MAP, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT BEING THE NORTHWEST CORNER OF SAID LOT B; THENCE FROM SAID POINT OF BEGINNING, ALONG THE NORTH LINE OF SAID LOT B, NORTH 89°43'31" EAST, A DISTANCE OF

90.00 FEET; THENCE LEAVING SAID NORTH LINE AND THROUGH SAID LOT B THE FOLLOWING TWO (2) COURSES AND DISTANCES:

1. SOUTH 00°16'29" EAST, A DISTANCE OF 36.30 FEET;

2. SOUTH 89°43'31" WEST, A DISTANCE OF 90.00 FEET TO THE WEST LINE OF SAID LOT B;

THENCE ALONG SAID WEST LINE, NORTH 00°16'29" WEST, A DISTANCE OF 36.30 FEET TO THE POINT OF BEGINNING.

TOGETHER WITH A PORTION OF LOT A, AS SHOWN ON SAID MAP, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT BEING THE NORTHEAST CORNER OF SAID LOT A; THENCE FROM SAID POINT OF BEGINNING, ALONG THE EAST LINE OF SAID LOT A, SOUTH 00°16'29" EAST, A DISTANCE OF 290.00 FEET TO THE SOUTHEAST CORNER OF SAID LOT A; THENCE ALONG THE SOUTH LINE OF SAID LOT A, SOUTH 89°43'31" WEST, A DISTANCE OF 10.00 FEET; THENCE LEAVING SAID SOUTH LINE, THROUGH SAID LOT A, NORTH 00°16'29" WEST, A DISTANCE OF 290.00 FEET TO THE NORTH LINE OF SAID LOT A; THENCE ALONG SAID NORTH LINE, NORTH 89°43'31" EAST, A DISTANCE OF 10.00 FEET TO THE POINT OF BEGINNING.

TOGETHER WITH A PORTION OF LOT 5, AS SHOWN ON SAID MAP, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT BEING THE NORTHEAST CORNER OF LOT A ON SAID FINAL MAP, ALSO BEING THE NORTHWEST CORNER OF SAID LOT 5; THENCE FROM SAID POINT OF BEGINNING, THENCE ALONG THE NORTHERLY LINE OF SAID LOT 5, THE FOLLOWING THIRTY-THREE (33) ARCS, COURSES AND DISTANCES:

1. NORTH 89°43'31" EAST, A DISTANCE OF 59.00 FEET;

2. ALONG A TANGENT CURVE CONCAVE TO THE NORTH, HAVING A RADIUS OF 10.00 FEET, EASTERLY

5.79 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 33°09'50";

3. ALONG A REVERSE CURVE CONCAVE TO THE SOUTH, HAVING A RADIUS OF 10.00 FEET, EASTERLY

11.49 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 65°51'08";

4. ALONG A COMPOUND CURVE CONCAVE TO THE SOUTHWEST, HAVING A RADIUS OF 21.00 FEET, SOUTHEASTERLY 9.02 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 24°37'25";

5. ALONG A COMPOUND CURVE CONCAVE TO THE WEST, HAVING A RADIUS OF 10.00 FEET, SOUTHERLY 11.49 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 65°51'08";

6. ALONG A REVERSE CURVE CONCAVE TO THE EAST, HAVING A RADIUS OF 10.00 FEET, SOUTHERLY

5.79 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 33°09'50";

7. NORTH 89°43'31" EAST, A DISTANCE OF 53.00 FEET;

8. FROM A RADIAL LINE WHICH BEARS NORTH 89°43'31" EAST, ALONG A NON-TANGENT CURVE CONCAVE TO THE WEST, HAVING A RADIUS OF 10.00 FEET, NORTHERLY 5.79 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 33°09'50";
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9. ALONG A REVERSE CURVE CONCAVE TO THE EAST, HAVING A RADIUS OF 10.00 FEET, NORTHERLY

11.49 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 65°51'08";

10. ALONG A COMPOUND CURVE CONCAVE TO THE SOUTHEAST, HAVING A RADIUS OF 21.00 FEET, NORTHEASTERLY 9.02 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 24°37'25";

11. ALONG A COMPOUND CURVE CONCAVE TO THE SOUTH, HAVING A RADIUS OF 10.00 FEET, EASTERLY 11.49 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 65°51'08";

12. ALONG A REVERSE CURVE CONCAVE TO THE NORTH, HAVING A RADIUS OF 10.00 FEET, EASTERLY

5.79 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 33°09'50";

13. NORTH 89°43'31" EAST, A DISTANCE OF 138.00 FEET;

14. ALONG A TANGENT CURVE CONCAVE TO THE NORTH, HAVING A RADIUS OF 10.00 FEET, EASTERLY

5.79 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 33°09'50";

15. ALONG A REVERSE CURVE CONCAVE TO THE SOUTH, HAVING A RADIUS OF 10.00 FEET, EASTERLY

11.49 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 65°51'08";

16. ALONG A COMPOUND CURVE CONCAVE TO THE SOUTHWEST, HAVING A RADIUS OF 21.00 FEET, SOUTHEASTERLY 9.02 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 24°37'25";

17. ALONG A COMPOUND CURVE CONCAVE TO THE WEST, HAVING A RADIUS OF 10.00 FEET, SOUTHERLY 11.49 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 65°51'08";

18. ALONG A REVERSE CURVE CONCAVE TO THE EAST, HAVING A RADIUS OF 10.00 FEET, SOUTHERLY

5.79 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 33°09'50";

19. NORTH 89°43'31" EAST, A DISTANCE OF 53.00 FEET;

20. FROM A RADIAL LINE WHICH BEARS NORTH 89°43'31" EAST, ALONG A NON-TANGENT CURVE CONCAVE TO THE WEST, HAVING A RADIUS OF 10.00 FEET, NORTHERLY 5.79 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 33°09'50";

21. ALONG A REVERSE CURVE CONCAVE TO THE EAST, HAVING A RADIUS OF 10.00 FEET, NORTHERLY

11.49 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 65°51'08";

22. ALONG A COMPOUND CURVE CONCAVE TO THE SOUTHEAST, HAVING A RADIUS OF 21.00 FEET, NORTHEASTERLY 9.02 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 24°37'25";

23. ALONG A COMPOUND CURVE CONCAVE TO THE SOUTH, HAVING A RADIUS OF 10.00 FEET, EASTERLY 11.49 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 65°51'08";

24. ALONG A REVERSE CURVE CONCAVE TO THE NORTH, HAVING A RADIUS OF 10.00 FEET, EASTERLY

5.79 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 33°09'50";

25. NORTH 89°43'31" EAST, A DISTANCE OF 18.50 FEET;

26. ALONG A TANGENT CURVE CONCAVE TO THE NORTHWEST, HAVING A RADIUS OF 276.50 FEET, NORTHEASTERLY 434.33 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 90°00'00";

27. NORTH 00°16'29" WEST, A DISTANCE OF 100.50 FEET;

28. ALONG A TANGENT CURVE CONCAVE TO THE WEST, HAVING A RADIUS OF 10.00 FEET, NORTHERLY 5.79 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 33°09'50";

29. ALONG A REVERSE CURVE CONCAVE TO THE EAST, HAVING A RADIUS OF 10.00 FEET, NORTHERLY

11.49 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 65°51'08";

30. ALONG A COMPOUND CURVE CONCAVE TO THE SOUTHEAST, HAVING A RADIUS OF 21.00 FEET, NORTHEASTERLY 9.02 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 24°37'25";

31. ALONG A COMPOUND CURVE CONCAVE TO THE SOUTH, HAVING A RADIUS OF 10.00 FEET, EASTERLY 11.49 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 65°51'08";

32. ALONG A REVERSE CURVE CONCAVE TO THE NORTH, HAVING A RADIUS OF 10.00 FEET, EASTERLY

5.79 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 33°09'50";

33. NORTH 00°16'29" WEST, A DISTANCE OF 53.00 FEET TO THE SOUTH LINE LOT B OF SAID FINAL MAP;

THENCE ALONG SAID SOUTH LINE THE FOLLOWING TWO (2) ARC, COURSE AND DISTANCE:

1. NORTH 89°43'31" EAST, A DISTANCE OF 65.33 FEET;

2. ALONG A TANGENT CURVE CONCAVE TO THE NORTH, HAVING A RADIUS OF 223.50 FEET, EASTERLY

31.37 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 08°02'29";

THENCE LEAVING SAID SOUTH LINE AND THROUGH SAID LOT 5 THE FOLLOWING FORTY-THREE (43) 824

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ARCS, COURSES AND DISTANCES:

1. SOUTH 08°18'58" EAST, A DISTANCE OF 53.00 FEET;

2. NORTH 81°41'02" EAST, A DISTANCE OF 18.95 FEET;

3. ALONG A TANGENT CURVE CONCAVE TO THE NORTHWEST, HAVING A RADIUS OF 10.00 FEET, NORTHEASTERLY 6.01 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 34°24'53";

4. ALONG A REVERSE CURVE CONCAVE TO THE SOUTH, HAVING A RADIUS OF 10.00 FEET, EASTERLY

10.68 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 61°10'28";

5. ALONG A COMPOUND CURVE CONCAVE TO THE SOUTHWEST, HAVING A RADIUS OF 24.00 FEET, SOUTHEASTERLY 13.34 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 31°51'15";

6. ALONG A COMPOUND CURVE CONCAVE TO THE WEST, HAVING A RADIUS OF 10.00 FEET, SOUTHERLY 10.68 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 61°10'28";

7. ALONG A REVERSE CURVE CONCAVE TO THE EAST, HAVING A RADIUS OF 10.00 FEET, SOUTHERLY

6.01 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 34°24'53";

8. SOUTH 12°56'31" EAST, A DISTANCE OF 61.59 FEET;

9. ALONG A TANGENT CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF 276.50 FEET, SOUTHEASTERLY 128.20 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 26°33'53";

10.ALONG A COMPOUND CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF 10.00 FEET, SOUTHEASTERLY 5.95 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 34°06'53";

11. ALONG A REVERSE CURVE CONCAVE TO THE SOUTHWEST, HAVING A RADIUS OF 10.00 FEET, SOUTHEASTERLY 11.43 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 65°30'12";

12. ALONG A COMPOUND CURVE CONCAVE TO THE WEST, HAVING A RADIUS OF 21.00 FEET, SOUTHERLY 8.92 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 24°19'51";

13. ALONG A COMPOUND CURVE CONCAVE TO THE NORTHWEST, HAVING A RADIUS OF 10.00 FEET, SOUTHWESTERLY 11.49 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 65°51'08";

14. ALONG A REVERSE CURVE CONCAVE TO THE SOUTHEAST, HAVING A RADIUS OF 10.00 FEET, SOUTHWESTERLY 5.79 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 33°09'50";

15. SOUTH 48°54'04" WEST, A DISTANCE OF 76.42 FEET;

16. ALONG A TANGENT CURVE CONCAVE TO THE SOUTHEAST, HAVING A RADIUS OF 426.50 FEET, SOUTHWESTERLY 107.47 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 14°26'13";

17. SOUTH 34°27'51" WEST, A DISTANCE OF 292.53 FEET;

18. ALONG A TANGENT CURVE CONCAVE TO THE NORTHWEST, HAVING A RADIUS OF 233.50 FEET, SOUTHWESTERLY 225.21 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 55°15'40";

19. SOUTH 89°43'31" WEST, A DISTANCE OF 44.84 FEET;

20. ALONG A TANGENT CURVE CONCAVE TO THE SOUTH, HAVING A RADIUS OF 10.00 FEET, WESTERLY 5.79 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 33°09'50";

21. ALONG A REVERSE CURVE CONCAVE TO THE NORTH, HAVING A RADIUS OF 10.00 FEET, WESTERLY

11.49 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 65°51'08";

22. ALONG A COMPOUND CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF 21.00 FEET, NORTHWESTERLY 9.02 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 24°37'25";

23. ALONG A COMPOUND CURVE CONCAVE TO THE EAST, HAVING A RADIUS OF 10.00 FEET, NORTHERLY 11.49 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 65°51'08";

24. ALONG A REVERSE CURVE CONCAVE TO THE WEST, HAVING A RADIUS OF 10.00 FEET, NORTHERLY

5.79 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 33°09'50";

25. SOUTH 89°43'31" WEST, A DISTANCE OF 53.00 FEET;

26. FROM A RADIAL LINE WHICH BEARS SOUTH 89°43'31" WEST, ALONG A NON-TANGENT CURVE CONCAVE TO THE EAST, HAVING A RADIUS OF 10.00 FEET, SOUTHERLY 5.79 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 33°09'50";

27. ALONG A REVERSE CURVE CONCAVE TO THE WEST, HAVING A RADIUS OF 10.00 FEET, SOUTHERLY

11.49 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 65°51'08";

28. ALONG A COMPOUND CURVE CONCAVE TO THE NORTHWEST, HAVING A RADIUS OF 21.00 FEET, SOUTHWESTERLY 9.02 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 24°37'25";

29. ALONG A COMPOUND CURVE CONCAVE TO THE NORTH, HAVING A RADIUS OF 10.00 FEET, WESTERLY 11.49 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 65°51'08";

30. ALONG A REVERSE CURVE CONCAVE TO THE SOUTH, HAVING A RADIUS OF 10.00 FEET, WESTERLY 825

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5.79 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 33°09'50";

31. SOUTH 89°43'31" WEST, A DISTANCE OF 138.00 FEET;

32. ALONG A TANGENT CURVE CONCAVE TO THE SOUTH, HAVING A RADIUS OF 10.00 FEET, WESTERLY 5.79 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 33°09'50";

33. ALONG A REVERSE CURVE CONCAVE TO THE NORTH, HAVING A RADIUS OF 10.00 FEET, WESTERLY

11.49 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 65°51'08";

34. ALONG A COMPOUND CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF 21.00 FEET, NORTHWESTERLY 9.02 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 24°37'25";

35. ALONG A COMPOUND CURVE CONCAVE TO THE EAST, HAVING A RADIUS OF 10.00 FEET, NORTHERLY 11.49 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 65°51'08";

36. ALONG A REVERSE CURVE CONCAVE TO THE WEST, HAVING A RADIUS OF 10.00 FEET, NORTHERLY

5.79 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 33°09'50";

37. SOUTH 89°43'31" WEST, A DISTANCE OF 53.00 FEET;

38. FROM A RADIAL LINE WHICH BEARS SOUTH 89°43'31" WEST, ALONG A NON-TANGENT CURVE CONCAVE TO THE EAST, HAVING A RADIUS OF 10.00 FEET, SOUTHERLY 5.79 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 33°09'50";

39. ALONG A REVERSE CURVE CONCAVE TO THE WEST, HAVING A RADIUS OF 10.00 FEET, SOUTHERLY

11.49 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 65°51'08";

40. ALONG A COMPOUND CURVE CONCAVE TO THE NORTHWEST, HAVING A RADIUS OF 21.00 FEET, SOUTHWESTERLY 9.02 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 24°37'25";

41. ALONG A COMPOUND CURVE CONCAVE TO THE NORTH, HAVING A RADIUS OF 10.00 FEET, WESTERLY 11.49 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 65°51'08";

42. ALONG A REVERSE CURVE CONCAVE TO THE SOUTH, HAVING A RADIUS OF 10.00 FEET, WESTERLY

5.79 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 33°09'50";

43. SOUTH 89°43'31" WEST, A DISTANCE OF 59.00 FEET TO THE SOUTHEAST CORNER OF SAID LOT A;

THENCE ALONG THE EAST LINE OF SAID LOT A, NORTH 00°16'29" WEST, A DISTANCE OF 290.00 FEET TO THE POINT OF BEGINNING.

EXCEPTING THEREFROM THE AREA DESCRIBED AS FOLLOWS:

COMMENCING AT A POINT BEING THE NORTHWEST CORNER OF SAID LOT B; THENCE ALONG THE NORTH LINE OF SAID LOT B, NORTH 89°43'31" EAST, A DISTANCE OF 90.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE FROM SAID TRUE POINT OF BEGINNING, LEAVING SAID NORTH LINE AND THROUGH SAID LOT 2 THE FOLLOWING FIVE (5) COURSES AND DISTANCES:

1. NORTH 00°16'29" WEST, A DISTANCE OF 50.00 FEET;

2. NORTH 89°43'31" EAST, A DISTANCE OF 88.75 FEET;

3. SOUTH 67°45'33" EAST, A DISTANCE OF 46.55 FEET;

4. SOUTH 75°16'40" EAST, A DISTANCE OF 29.25 FEET;

5. NORTH 89°43'31" EAST, A DISTANCE OF 106.70 FEET TO THE EAST LINE OF SAID LOT 2;

THENCE ALONG SAID EAST LINE, SOUTH 00°16'29" EAST, A DISTANCE OF 24.61 FEET TO THE NORTH LINE OF SAID LOT B; THENCE CONTINUING ALONG SAID NORTH LINE THE FOLLOWING FIVE (5) ARC, COURSES AND DISTANCES:

1. SOUTH 89°43'31" WEST, A DISTANCE OF 109.57 FEET;

2. NORTH 25°57'58" WEST, A DISTANCE OF 16.00 FEET;

3. FROM A RADIAL LINE WHICH BEARS SOUTH 25°57'58" EAST, ALONG A NON-TANGENT CURVE CONCAVE TO THE NORTH, HAVING A RADIUS OF 42.00 FEET, WESTERLY 37.67 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 51°22'59";

4. SOUTH 25°25'00" WEST, A DISTANCE OF 16.00 FEET;

5. SOUTH 89°43'31" WEST, A DISTANCE OF 106.84 FEET TO THE TRUE POINT OF BEGINNING.

THIS LEGAL DESCRIPTION IS MADE PURSUANT TO THAT CERTAIN APPROVAL OF LOT LINE 826

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ADJUSTMENT NO. 2021-4/CERTIFICATE OF COMPLIANCE, SHOWN AS RESULTANT LOT 2, RECORDED DECEMBER 20, 2021, AS INSTRUMENT NO. 2021-0153198-00 OF OFFICIAL RECORDS.

APN: Portions of 021-740-001-000, 021-740-002-000, 021-740-016-000 and 021-740-019-000 (Underlying); 021-740-025-000 (New APN, not yet assessed)

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NOTICE

Section 12413.1 of the California Insurance Code, effective January 1, 1990, requires that any title insurance company, underwritten title company, or controlled escrow company handling funds in an escrow or sub- escrow capacity, wait a specified number of days after depositing funds, before recording any documents in connection with the transaction or disbursing funds. This statute allows for funds deposited by wire transfer to be disbursed the same day as deposit. In the case of cashier's checks or certified checks, funds may be disbursed the next day after deposit. In order to avoid unnecessary delays of three to seven days, or more, please use wire transfer, cashier's checks, or certified checks whenever possible.

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EXHIBIT A

LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS (BY POLICY TYPE)

CLTA STANDARD COVERAGE POLICY – 1990

EXCLUSIONS FROM COVERAGE

The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of:

1. (a) Any law, ordinance or governmental regulation (including but not limited to building or zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien, or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy.
(b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy.

2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge.

3. Defects, liens, encumbrances, adverse claims or other matters:
(a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant;
(b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy;
(c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy.

4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated.

5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law.

6. Any claim, which arises out of the transaction vesting in the insured the estate of interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws.

EXCEPTIONS FROM COVERAGE - SCHEDULE B, PART I
This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of:

1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records.

Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public, records.

2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof.

3. Easements, liens or encumbrances, or claims thereof, not shown by the public records.

4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records.

5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records.

6. Any lien or right to a lien for services, labor or material unless such lien is shown by the public records at Date of Policy.

CLTA/ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (12-02-13)

EXCLUSIONS

In addition to the Exceptions in Schedule B, You are not insured against loss, costs, attorneys' fees, and expenses resulting from:

1. Governmental police power, and the existence or violation of those portions of any law or government regulation concerning:
a. building;
b. zoning;
c. land use;
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d. improvements on the Land;
e. land division; and
f. environmental protection.

This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23 or 27.

2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion does not limit the coverage described in Covered Risk 14 or 15.

3. The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered Risk 17.

4. Risks:
a. that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they are recorded in the Public Records at the Policy Date; c. that result in no loss to You; or
d. that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or 28.

5. Failure to pay value for Your Title.

6. Lack of a right:
a. to any land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land.

This Exclusion does not limit the coverage described in Covered Risk 11 or 21.

7. The transfer of the Title to You is invalid as a preferential transfer or as a fraudulent transfer or conveyance under federal bankruptcy, state insolvency, or similar creditors' rights laws.

8. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence.

9. Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances.

LIMITATIONS ON COVERED RISKS

Your insurance for the following Covered Risks is limited on the Owner's Coverage Statement as follows:

For Covered Risk 16, 18, 19, and 21 Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A.

The deductible amounts and maximum dollar limits shown on Schedule A are as follows:

Your Deductible Amount Our Maximum Dollar Limit of Liability

Covered Risk 16: 1% of Policy Amount Shown in Schedule A or $2,500 $10,000 (whichever is less)

Covered Risk 18: 1% of Policy Amount Shown in Schedule A or $5,000 $25,000 (whichever is less)

Covered Risk 19: 1% of Policy Amount Shown in Schedule A or $5,000 $25,000 (whichever is less)

Covered Risk 21: 1% of Policy Amount Shown in Schedule A or $2,500 $5,000 (whichever is less)

2006 ALTA LOAN POLICY (06-17-06)

EXCLUSIONS FROM COVERAGE

The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:

1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to

(i) the occupancy, use, or enjoyment of the Land;
(ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or
(iv) environmental protection;

or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5.
(b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6.

2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.

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(c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 13, or 14); or
(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage.

4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing-business laws of the state where the Land is situated.

5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth-in-lending law.

6. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage, is
(a) a fraudulent conveyance or fraudulent transfer, or
(b) a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy.

7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modify or limit the coverage provided under Covered Risk 11(b).

The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage:

EXCEPTIONS FROM COVERAGE
[Except as provided in Schedule B - Part II,[ t[or T]his policy does not insure against loss or damage, and the Company will not pay costs, attorneys' fees or expenses, that arise by reason of:
[PART I
[The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage:

1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.

2. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land.

3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records.

4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records.

6. Any lien or right to a lien for services, labor or material unless such lien is shown by the Public Records at Date of Policy.

PART II
In addition to the matters set forth in Part I of this Schedule, the Title is subject to the following matters, and the Company insures against loss or damage sustained in the event that they are not subordinate to the lien of the Insured Mortgage:]

2006 ALTA OWNER'S POLICY (06-17-06)

EXCLUSIONS FROM COVERAGE

The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:

1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to

(i) the occupancy, use, or enjoyment of the Land;
(ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or
(iv) environmental protection;

2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.

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(c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 9 or 10); or
(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title.

4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction vesting the Title as shown in Schedule A, is
(a) a fraudulent conveyance or fraudulent transfer, or
(b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy.

5. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A.

EXCEPTIONS FROM COVERAGE

This policy does not insure against loss or damage, and the Company will not pay costs, attorneys' fees or expenses, that arise by reason of:
[The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage:

3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records.

6. Any lien or right to a lien for services, labor or material unless such lien is shown by the Public Records at Date of Policy.

7. [Variable exceptions such as taxes, easements, CC&R's, etc. shown here.]

ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (07-26-10)

EXCLUSIONS FROM COVERAGE

The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:

1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to

(i) the occupancy, use, or enjoyment of the Land;
(ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or
(iv) environmental protection;

or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16.

2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.

3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); or
(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage.

4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing-business laws of the state where the Land is situated.

6. Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made after the 833

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Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11.

7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11(b) or 25.

8. The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in accordance with applicable building codes. This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6.

9. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage, is
(a) a fraudulent conveyance or fraudulent transfer, or
(b) a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy.

10. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence.

11. Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances.

834

Privacy Notice

Effective: October 1, 2019

Notice Last Updated: January 1, 2022

This Privacy Notice describes how First American Financial Corporation and its subsidiaries and affiliates (together referred to as “First American,” “we,” “us,” or “our”) collect, use, store, and share your information with the exception that a subsidiary or affiliate has their own privacy policy, that policy governs. This Privacy Notice applies to information we receive from you offline only, as well as from third parties, when you interact with us and/or use and access our services and products (“Products”). For more information about our privacy practices, including our online practices, please visit https://www.firstam.com/privacy-policy/. The practices described in this Privacy Notice are subject to applicable laws in the places in which we operate.

What Type Of Information Do We Collect About You? We collect a variety of categories of information about you.

To learn more about the categories of information we collect, please visit https://www.firstam.com/privacy-policy/.

How Do We Collect Your Information? We collect your information: (1) directly from you; (2) automatically when you interact with us; and (3) from third parties, including business parties and affiliates.

How Do We Use Your Information? We may use your information in a variety of ways, including but not limited to providing the services you have requested, fulfilling your transactions, comply with relevant laws and our policies, and handling a claim. To learn more about how we may use your information, please visit https://www.firstam.com/privacy- policy/.

How Do We Share Your Information? We do not sell your personal information. We only share your information, including to subsidiaries, affiliates, and to unaffiliated third parties: (1) with your consent; (2) in a business transfer; (3) to service providers; and (4) for legal process and protection. To learn more about how we share your information, please visit https://www.firstam.com/privacy-policy/.

How Do We Store and Protect Your Information? The security of your information is important to us. That is why we take commercially reasonable steps to make sure your information is protected. We use our best efforts to maintain commercially reasonable technical, organizational, and physical safeguards, consistent with applicable law, to protect your information.

How Long Do We Keep Your Information? We keep your information for as long as necessary in accordance with the purpose for which it was collected, our business needs, and our legal and regulatory obligations.

Your Choices We provide you the ability to exercise certain controls and choices regarding our collection, use, storage, and sharing of your information. You can learn more about your choices by visiting https://www.firstam.com/privacy- policy/.

International Jurisdictions: Our Products are offered in the United States of America (US), and are subject to US federal, state, and local law. If you are accessing the Products from another country, please be advised that you may be transferring your information to us in the US, and you consent to that transfer and use of your information in accordance with this Privacy Notice. You also agree to abide by the applicable laws of applicable US federal, state, and local laws concerning your use of the Products, and your agreements with us.

We may change this Privacy Notice from time to time. Any and all changes to this Privacy Notice will be reflected on this page, and where appropriate provided in person or by another electronic method. YOUR CONTINUED USE, ACCESS,

OR INTERACTION WITH OUR PRODUCTS OR YOUR CONTINUED COMMUNICATIONS WITH US AFTER THIS

NOTICE HAS BEEN PROVIDED TO YOU WILL REPRESENT THAT YOU HAVE READ AND UNDERSTOOD THIS PRIVACY NOTICE.

Form 10-PRIVACY22 (12-7-21) Page 1 of 2 Privacy Notice (2022 First American Financial Corporation) English

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For California Residents

If you are a California resident, you may have certain rights under California law, including but not limited to the California Consumer Privacy Act of 2018 (“CCPA”). All phrases used in this section shall have the same meaning as those phrases are used under California law, including the CCPA.

Right to Know. You have a right to request that we disclose the following information to you: (1) the categories of personal information we have collected about or from you; (2) the categories of sources from which the personal information was collected; (3) the business or commercial purpose for such collection and/or disclosure; (4) the categories of third parties with whom we have shared your personal information; and (5) the specific pieces of your personal information we have collected. To submit a verified request for this information, go to our online privacy policy at www.firstam.com/privacy-policy to submit your request or call toll-free at 1-866-718-0097. You may also designate an authorized agent to submit a request on your behalf by going to our online privacy policy at www.firstam.com/privacy- policy to submit your request or by calling toll-free at 1-866-718-0097

Right of Deletion. You also have a right to request that we delete the personal information we have collected from and about you. This right is subject to certain exceptions available under the CCPA and other applicable law. To submit a verified request for deletion, go to our online privacy policy at www.firstam.com/privacy-policy to submit your request or call toll-free at 1-866-718-0097. You may also designate an authorized agent to submit a request on your behalf by going to our online privacy policy at www.firstam.com/privacy-policy to submit your request or by calling toll-free at 1-866-718- 0097.

Verification Process. For either a request to know or delete, we will verify your identity before responding to your request. To verify your identity, we will generally match the identifying information provided in your request with the information we have on file about you. Depending on the sensitivity of the information requested, we may also utilize more stringent verification methods to verify your identity, including but not limited to requesting additional information from you and/or requiring you to sign a declaration under penalty of perjury.

Notice of Sale. We do not sell California resident information, nor have we sold California resident information in the past 12 months. To the extent any First American affiliated entity has a different practice, it will be stated in the applicable privacy policy. We have no actual knowledge of selling the information of minors under the age of 16.

Right of Non-Discrimination. You have a right to exercise your rights under California law, including under the CCPA, without suffering discrimination. Accordingly, First American will not discriminate against you in any way if you choose to exercise your rights under the CCPA.

Notice of Collection. To learn more about the categories of personal information we have collected about California residents over the last 12 months, please see “What Information Do We Collect About You” in https://www.firstam.com/privacy-policy. To learn about the sources from which we have collected that information, the business and commercial purpose for its collection, and the categories of third parties with whom we have shared that information, please see “How Do We Collect Your Information”, “How Do We Use Your Information”, and “How Do We Share Your Information” in https://www.firstam.com/privacy-policy.

Notice of Sale. We have not sold the personal information of California residents in the past 12 months.

Notice of Disclosure. To learn more about the categories of personal information we may have disclosed about California residents in the past 12 months, please see “How Do We Use Your Information” and “How Do We Share Your Information” in https://www.firstam.com/privacy-policy.

Form 10-PRIVACY22 (12-7-21) Page 2 of 2 Privacy Notice (2022 First American Financial Corporation) English

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CLTA Preliminary Report Form Order Number: 0192-6514432 (Rev. 11/06) Page Number: 1

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Updated

First American Title Company
1001 Galaxy Way, Suite 315
Concord, CA 94520
California Department of Insurance License No. 151

Title Officer: Julie Grace
Phone: (925)738-4053
Fax No.: (925)671-9437
E-Mail: [email protected]

Owner: Arroyo CAP III-1, LLC

Property: Independence Unit No. 5, Lot 5, APN 021-740-019-000 (PTN)
Lincoln, CA

It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land.

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Dated as of March 17, 2022 at 7:30 A.M.

The form of Policy of title insurance contemplated by this report is:

A specific request should be made if another form or additional coverage is desired.

Title to said estate or interest at the date hereof is vested in:

ARROYO CAP III-1, LLC, A DELAWARE LIMITED LIABILITY COMPANY The estate or interest in the land hereinafter described or referred to covered by this Report is:

A fee.

The Land referred to herein is described as follows:

(See attached Legal Description)

At the date hereof exceptions to coverage in addition to the printed Exceptions and Exclusions in said policy form would be as follows:

1. General and special taxes and assessments for the fiscal year 2022-2023, a lien not yet due or payable.

2. Assessment liens, if applicable, collected with the general and special taxes, including but not limited to those disclosed by the reflection of the following on the tax roll:

Community Facilities District City of Lincoln CFD No. 2018-1 MR.

Document(s) declaring modifications thereof recorded May 13, 2019 as Instrument No. 2019- 0031023 of Official Records.

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6. The lien of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with Section 75 of the California Revenue and Taxation Code.

7. An easement for sanitary sewer system, City utilities and operation and maintenance, ingress and egress and incidental purposes, recorded April 1, 2014 as Instrument No. 2014-0020186 of Official Records.

In Favor of: City of Lincoln, a Municipal corporation
Affects: a portion of said land

8. An easement shown or dedicated on the Map as referred to in the legal description

For: Public road purposes on, over, under and across Waverly Drive and Street 7 and incidental purposes.

The City does not accept said irrevocable offers of dedication at this time, but reserves the right to do so in the future, as per City Clerk's Statement.

9. The following matters shown or disclosed by the filed or recorded map referred to in the legal description:

Development of any property within Lots 2 and 5 shown hereon, may require significant on and offsite improvements.

Property is subject to restrictions of the Lincoln Regional Airport Land Use Compatibility Plan.

10. The terms and provisions contained in the document entitled "Public Improvement Agreement" recorded October 30, 2019 as Instrument No. 2019-0085892 of Official Records.

11. The Terms, Provisions and Easement(s) contained in the document entitled "Grant of Avigation Easement" recorded December 15, 2020 as Instrument No. 2020-0147211-00 of Official Records.

The location of the easement cannot be determined from record information.

12. Covenants, conditions, restrictions and easements in the document recorded December 15, 2020 as Instrument No. 2020-0147212-00 of Official Records, which provide that a violation thereof shall not defeat or render invalid the lien of any first mortgage or deed of trust made in good faith and for value, but deleting any covenant, condition, or restriction, if any, indicating a preference, limitation, or discrimination based on race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, familial status, marital status, disability, handicap, veteran or military status, genetic information, national origin, source of income as defined in subdivision (p) of Section 12955, or ancestry, to the extent that such covenants, conditions or restrictions violate applicable state or federal laws. Lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status.

13. The terms and provisions contained in the document entitled "Public Improvement Agreement" recorded June 9, 2021 as Instrument No. 2021-0076070 of Official Records. 839

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14. The terms and provisions contained in the document entitled "Public Improvement Agreement" recorded June 9, 2021 as Instrument No. 2021-0076071 of Official Records.

15. The terms and provisions contained in the document entitled "Public Improvement Agreement" recorded June 9, 2021 as Instrument No. 2021-0076072 of Official Records.

16. The terms and provisions contained in the document entitled "Public Improvement Agreement" recorded June 9, 2021 as Instrument No. 2021-0076073 of Official Records.

17. An easement for public waterline and sewer and incidental purposes, recorded August 26, 2021 as Instrument No. 2021-0108384 of Official Records.

In Favor of: The City of Lincoln, a municipal corporation Affects: as described therein

18. An easement for water, gas, sewer and drainage pipes, electrical facilities, communication facilities and traffic control facilities and incidental purposes, recorded August 26, 2021 as Instrument No. 2021-0108385 of Official Records.

In Favor of: The City of Lincoln, a municipal corporation Affects: as described therein

19. An easement for public street and highway and incidental purposes, recorded August 26, 2021 as Instrument No. 2021-0108386 of Official Records.

In Favor of: The City of Lincoln, a municipal corporation Affects: as described therein

20. An easement for waterline and sewer and incidental purposes, recorded August 26, 2021 as Instrument No. 2021-0108387 of Official Records.

In Favor of: The City of Lincoln, a municipal corporation Affects: as described therein

21. An easement for public waterline and sewer and incidental purposes, recorded August 26, 2021 as Instrument No. 2021-0108388 of Official Records.

In Favor of: The City of Lincoln, a municipal corporation Affects: as described therein

22. An easement for public waterline and sewer and incidental purposes, recorded August 26, 2021 as Instrument No. 2021-0108389 of Official Records.

In Favor of: The City of Lincoln, a municipal corporation Affects: as described therein

23. An easement for public waterline and sewer and incidental purposes, recorded August 26, 2021 as Instrument No. 2021-0108390 of Official Records.

In Favor of: The City of Lincoln, a municipal corporation Affects: as described therein

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24. A deed of trust to secure the performance of an agreement or other obligation, recorded December 27, 2021 as Instrument No. 2021-0155223 of Official Records.

Affects: The land and other property.

25. A Deed of Trust to secure an original indebtedness of $40,710,651.00 recorded December 27, 2021 as Instrument No. 2021-0155224 of Official Records.

Affects: The land and other property.

26. The terms and provisions contained in the document entitled "Declaration of Development Covenants, Conditions and Restrictions for Independence at Lincoln" recorded December 27, 2021 as Instrument No. 2021-0155225 of Official Records.

27. An option in favor of Tri Pointe Homes Holdings, Inc., a Delaware corporation as contained in or disclosed by a document recorded December 27, 2021 as Instrument No. 2021-0155226 of Official Records.

28. Rights of the public in and to that portion of the Land lying within any Road, Street, Alley or Highway.

29. Water rights, claims or title to water, whether or not shown by the Public Records.

30. Rights of parties in possession.

Prior to the issuance of any policy of title insurance, the Company will require:
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31. With respect to Arroyo CAP III-1, LLC, a Delaware limited liability company:
a. A copy of its operating agreement and any amendments thereto; b. If it is a California limited liability company, that a certified copy of its articles of organization (LLC- 1) and any certificate of correction (LLC-11), certificate of amendment (LLC-2), or restatement of articles of organization (LLC-10) be recorded in the public records; c. If it is a foreign limited liability company, that a certified copy of its application for registration (LLC-5) be recorded in the public records;
d. With respect to any deed, deed of trust, lease, subordination agreement or other document or instrument executed by such limited liability company and presented for recordation by the Company or upon which the Company is asked to rely, that such document or instrument be executed in accordance with one of the following, as appropriate:
(i) If the limited liability company properly operates through officers appointed or elected pursuant to the terms of a written operating agreement, such document must be executed by at least two duly elected or appointed officers, as follows: the chairman of the board, the president or any vice president, and any secretary, assistant secretary, the chief financial officer or any assistant treasurer; (ii) If the limited liability company properly operates through a manager or managers identified in the articles of organization and/or duly elected pursuant to the terms of a written operating agreement, such document must be executed by at least two such managers or by one manager if the limited liability company properly operates with the existence of only one manager. e. Other requirements which the Company may impose following its review of the material required herein and other information which the Company may require

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INFORMATIONAL NOTES

1. General and special taxes and assessments for the fiscal year 2021-2022.

First Installment: $4,984.49, PAID
Penalty: $0.00
Second Installment: $4,984.49, PAID
Penalty: $0.00
Tax Rate Area: 003-005
A. P. No.: 021-740-019-000

2. According to the public records, there has been no conveyance of the land within a period of twenty four months prior to the date of this report, except as follows:

A document recorded December 20, 2021 as Instrument No. 2021-0153325 Official Records

From: Lewis Land Developers, LLC, a Delaware limited liability company To: Lewis Land Developers, LLC, a Delaware limited liability company

A document recorded December 27, 2021 as Instrument No. 2021-0155222 Official Records

From: Lewis Land Developers, LLC, a Delaware limited liability company To: Arroyo Cap III-1, LLC, a Delaware limited liability company

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LEGAL DESCRIPTION

Real property in the City of Lincoln , County of Placer, State of California, described as follows:

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

Being all of Lot 5 of that certain map titled “Large Lot Final Map Independence at Lincoln”, filed in Book EE of Maps, at Page 65, Official Records of Placer County, situated within Section 17, Township 12 North, Range 6
East, Mount Diablo Meridian, located in the City of Lincoln, County of Placer, State of California, more particularly described as follows:

EXCEPTING THEREFROM the area described as follows:

BEGINNING at a point being the northeast corner of Lot A on said Final Map, also being the northwest corner of said Lot 5; thence from said POINT OF BEGINNING, thence along the northerly line of said Lot 5, the following
thirty-three (33) arcs, courses and distances:

1. North 89°43'31" East, a distance of 59.00 feet;

2. along a tangent curve concave to the north, having a radius of 10.00 feet, easterly 5.79 feet along said curve through a central angle of 33°09'50";

3. along a reverse curve concave to the south, having a radius of 10.00 feet, easterly 11.49 feet along said curve through a central angle of 65°51'08";

4. along a compound curve concave to the southwest, having a radius of 21.00 feet, southeasterly 9.02 feet along said curve through a central angle of 24°37'25";

5. along a compound curve concave to the west, having a radius of 10.00 feet, southerly 11.49 feet along said curve through a central angle of 65°51'08";

6. along a reverse curve concave to the east, having a radius of 10.00 feet, southerly 5.79 feet along said curve through a central angle of 33°09'50";

7. North 89°43'31" East, a distance of 53.00 feet;

8. from a radial line which bears North 89°43'31" East, along a non-tangent curve concave to the west, having a radius of 10.00 feet, northerly 5.79 feet along said curve through a central angle of 33°09'50";

9. along a reverse curve concave to the east, having a radius of 10.00 feet, northerly 11.49 feet along said curve through a central angle of 65°51'08";

10. along a compound curve concave to the southeast, having a radius of 21.00 feet, northeasterly 9.02 feet along said curve through a central angle of 24°37'25";

11. along a compound curve concave to the south, having a radius of 10.00 feet, easterly 11.49 feet along said curve through a central angle of 65°51'08";

12. along a reverse curve concave to the north, having a radius of 10.00 feet, easterly 5.79 feet along said curve through a central angle of 33°09'50";

13. North 89°43'31" East, a distance of 138.00 feet;

14. along a tangent curve concave to the north, having a radius of 10.00 feet, easterly 5.79 feet along said curve through a central angle of 33°09'50";

15. along a reverse curve concave to the south, having a radius of 10.00 feet, easterly 11.49 feet along said curve through a central angle of 65°51'08";

16. along a compound curve concave to the southwest, having a radius of 21.00 feet, southeasterly 9.02 feet along said curve through a central angle of 24°37'25";

17. along a compound curve concave to the west, having a radius of 10.00 feet, southerly 11.49 feet along said curve through a central angle of 65°51'08";

18. along a reverse curve concave to the east, having a radius of 10.00 feet, southerly 5.79 feet along said curve through a central angle of 33°09'50";
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19. North 89°43'31" East, a distance of 53.00 feet;

20. from a radial line which bears North 89°43'31" East, along a non-tangent curve concave to the west, having a radius of 10.00 feet, northerly 5.79 feet along said curve through a central angle of 33°09'50";

21. along a reverse curve concave to the east, having a radius of 10.00 feet, northerly 11.49 feet along said curve through a central angle of 65°51'08";

22. along a compound curve concave to the southeast, having a radius of 21.00 feet, northeasterly 9.02 feet along said curve through a central angle of 24°37'25";

23. along a compound curve concave to the south, having a radius of 10.00 feet, easterly 11.49 feet along said curve through a central angle of 65°51'08";

24. along a reverse curve concave to the north, having a radius of 10.00 feet, easterly 5.79 feet along said curve through a central angle of 33°09'50";

25. North 89°43'31" East, a distance of 18.50 feet;

26. along a tangent curve concave to the northwest, having a radius of 276.50 feet, northeasterly 434.33 feet along said curve through a central angle of 90°00'00";

27. North 00°16'29" West, a distance of 100.50 feet;

28. along a tangent curve concave to the west, having a radius of 10.00 feet, northerly 5.79 feet along said curve through a central angle of 33°09'50";

29. along a reverse curve concave to the east, having a radius of 10.00 feet, northerly 11.49 feet along said curve through a central angle of 65°51'08";

30. along a compound curve concave to the southeast, having a radius of 21.00 feet, northeasterly 9.02 feet along said curve through a central angle of 24°37'25";

31. along a compound curve concave to the south, having a radius of 10.00 feet, easterly 11.49 feet along said curve through a central angle of 65°51'08";

32. along a reverse curve concave to the north, having a radius of 10.00 feet, easterly 5.79 feet along said curve through a central angle of 33°09'50";

33. North 00°16'29" West, a distance of 53.00 feet to the south line Lot B of said Final Map;

Thence along said south line the following two (2) arc, course and distance:

1. North 89°43'31" East, a distance of 65.33 feet;

2. along a tangent curve concave to the north, having a radius of 223.50 feet, easterly 31.37 feet along said curve through a central angle of 08°02'29";

Thence leaving said south line and through said Lot 5 the following forty-three (43) arcs, courses and distances:

1. South 08°18'58" East, a distance of 53.00 feet;

2. North 81°41'02" East, a distance of 18.95 feet;

3. along a tangent curve concave to the northwest, having a radius of 10.00 feet, northeasterly 6.01 feet along said curve through a central angle of 34°24'53";

4. along a reverse curve concave to the south, having a radius of 10.00 feet, easterly 10.68 feet along said curve through a central angle of 61°10'28";

5. along a compound curve concave to the southwest, having a radius of 24.00 feet, southeasterly 13.34 feet along said curve through a central angle of 31°51'15";

6. along a compound curve concave to the west, having a radius of 10.00 feet, southerly 10.68 feet along said curve through a central angle of 61°10'28";

7. along a reverse curve concave to the east, having a radius of 10.00 feet, southerly 6.01 feet along said curve through a central angle of 34°24'53";

8. South 12°56'31" East, a distance of 61.59 feet;

9. along a tangent curve concave to the northeast, having a radius of 276.50 feet, southeasterly 128.20 feet along said curve through a central angle of 26°33'53";

10. along a compound curve concave to the northeast, having a radius of 10.00 feet, southeasterly 5.95 feet along said curve through a central angle of 34°06'53";

11. along a reverse curve concave to the southwest, having a radius of 10.00 feet, southeasterly 11.43 feet along said curve through a central angle of 65°30'12"; 845

Order Number: 0192-6514432
Page Number: 10

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Lincoln City CouncilOctober 28, 2025

Lincoln City Council
October 28, 2025