CFD 2022-3 IA 1 Appraisal Report — Menifee City Council, May 6, 2026

APPRAISAL REPORT

COMMUNITY FACILITIES DISTRICT NO. 2022-3 IMPROVEMENT AREA 1

OF THE CITY OF MENIFEE
(Legado, Improvement Area 1)
2026 Series Bonds

City of Menifee, Riverside County, California
(Appraiser’s File No. 2026-1313)

Prepared For
City of Menifee
29844 Haun Road
Menifee, California 92586

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

KITTY SIINO & ASSOCIATES, INC.

REAL ESTATE APPRAISERS & CONSULTANTS

April 2, 2026

Travis Hickey, Chief Financial Officer
City of Menifee
29844 Haun Road
Menifee, California 92586

Reference: Appraisal Report – City of Menifee
Community Facilities District No. 2022-3 Improvement Area 1 Legado Improvement Area 1 (2026 Bond Financing)
Menifee, California

Dear Mr. Hickey:

At the request and authorization of the City of Menifee, we have completed an Appraisal Report for Community Facilities District No. 2022-3 (Legado Improvement Area 1) of the City of Menifee (“Menifee CFD No. 2022-3 IA 1”) for the 2026 series bonds. Menifee CFD No. 2022-3 IA 1 consists of Improvement Area 1 of the new master planned community known as Legado being developed by Lennar Homes of California, LLC (“Lennar”). It is our understanding this is the first of two issues of bonds to be sold on Menifee CFD No. 2022-3 IA 1. Improvement Area 1 of Legado includes a total of 491 proposed single-family detached homes within four neighborhoods known as: Sonrisa at Legado (“Sonrisa”), Tesoro at Legado (“Tesoro”), Armonia at Legado (“Armonia”) and Belleza at Legado (“Belleza”). Sonrisa includes 162 proposed homes and is the smallest product line. Tesoro includes 99 proposed homes and are all single-story homes. Armonia includes 119 proposed homes while Belleza includes 111 proposed homes which are the largest sized homes. Out of the total 491 homes within Menifee CFD No. 2022-3 IA 1, 127 have closed to individuals and an additional 32 are in escrow and due to close upon completion. The lots which have not yet closed are owned by Lennar or KL LB Buy 1 LLC, a Delaware limited liability company (“KL LB”), a land bank company working with Lennar. The condition of these Lennar or KL LB owned lots range from model homes to production homes over 95 percent complete to production homes under construction and to generally finished lots. The valuation method used in this report is the Sales Comparison Approach along with a mass appraisal technique as defined within this report. The fee simple estate of the subject property has been valued subject to the Menifee CFD No. 2022-3 IA 1 special tax lien. This report is written with the hypothetical condition that the subject property is enhanced by the improvements and/or fee credits to be funded by bonds issued by City of Menifee CFD No. 2022-3 IA 1. As a result of our investigation, the concluded market value for the subject property is shown on the following page.

115 East Second Street, Suite 100, Tustin, California 92780 (714) 544-9978 - Phone, (714) 544-9985 – Fax, E-Mail: [email protected] Travis Hickey

CITY OF MENIFEE
April 2, 2026

Page 2 ends

Legado Improvement Area 1
Lennar Ownership (36 lots & 38 houses) $ 19,748,119 KL LB Ownership (290 lots) 45,766,480
Individual Owners (127 houses) 68,723,148
Total Aggregate Value Menifee CFD No. 2022-3 IA 1 $ 134,237,747

The above values are stated subject to the Assumptions and Limiting Conditions of this report, the Appraiser’s Certification and as of March 3, 2026.

Some supporting documentation concerning the data, reasoning and analyses may be retained in the appraiser’s files. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. This Appraisal Report is intended to comply with both the Uniform Standards of Professional Appraisal Practice (“USPAP” January 2022) and with the Appraisal Standards of the California Debt and Investment Advisory Commission (“CDIAC”). The appraiser is not responsible for unauthorized use of this report. The appraised value contained within this report is being estimated with the hypothetical condition of the special tax lien of the 2026 series of Menifee CFD No. 2022-3 IA 1 bonds.

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

Respectfully submitted,

KITTY SIINO & ASSOCIATES, INC.

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

TABLE OF CONTENTS

Assumptions and Limiting Conditions............................................................................... i Hypothetical Condition .................................................................................................... iii Extraordinary Assumption ............................................................................................... iii Aerial Photo of Menifee CFD No. 2022-3 IA 1 ................................................................. iv Purpose of the Appraisal ................................................................................................ 1 The Subject Property ...................................................................................................... 1 Intended Use of the Report ............................................................................................ 3 Definitions ...................................................................................................................... 3 Property Rights Appraised ............................................................................................. 5 Effective Date of Value ................................................................................................... 6 Date of Report ................................................................................................................ 6 Scope of Appraisal ........................................................................................................ 6 Regional Area Map.......................................................................................................... 9 County of Riverside Area Description ........................................................................... 10 Menifee Area Map ......................................................................................................... 19 City of Menifee Description ........................................................................................... 20 Legado Specific Plan and Immediate Surroundings ...................................................... 24 Community Facilities District No. 2022-3 ....................................................................... 27 Subject Property Description ......................................................................................... 30 Riverside County Housing Market ................................................................................. 39 Highest and Best Use Analysis ..................................................................................... 52 Valuation Analyses and Conclusions ............................................................................ 57 Appraisal Report Summary ........................................................................................... 85 Appraiser’s Certification ............................................................................................... 86

ADDENDA
CFD No. 2022-3 IA 1 Boundary Map
Tract Map Nos. 37408-1, 37408-2, 37408-3, 37408-4, 37409-1, 37409-2 and 37409-3 Cal Fire High Fire Hazard Severity Map
Discounted Cash Flow Analyses
Residential Land Sales Map and Summary Chart
Improved Residential Sales Map and Summary Chart
Appraiser’s Qualifications
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ASSUMPTIONS AND LIMITING CONDITIONS

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

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

3. The property is appraised subject to the special tax lien of the 2026 series of bonds for City of Menifee CFD No. 2022-3 IA 1.

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

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

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

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

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

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

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

11. Any sketch included in this report may show approximate dimensions and is included only to assist the reader in visualizing the properties. Maps and exhibits found in this report are provided for reader reference purposes only. No guarantee regarding accuracy is expressed or implied unless otherwise stated in this report. No survey has been made for the purpose of this report.
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12. It is assumed that the utilization of the land and improvements are within the boundaries or property lines of the property described and that there is no encroachment or trespass unless otherwise stated in this report.

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

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

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

16. The Americans with Disabilities Act (“ADA”) became effective on January 26, 1992.

The appraiser has made no specific compliance survey and analysis of the property to determine whether they conform to the various detailed requirements of the ADA, nor is the appraiser a qualified expert regarding the requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the ADA. If so, this fact could have a negative effect upon the value of the property. Since the appraiser has no direct evidence relating to this issue, a possible noncompliance with requirements of the ADA in estimating the value has not been considered.

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

18. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event, only with proper qualification and only in its entirety. Permission is given for this appraisal to be published as a part of the Official Statement or similar document in association with the Menifee CFD No. 2022-3 IA 1 Special Tax Bonds.

HYPOTHETICAL CONDITION

1. It is assumed that all improvements and/or benefits to the subject property, which are to be funded by the 2026 series of the Menifee CFD No. 2022-3 IA 1 Special Tax Bond proceeds, are completed and in place or have accrued to the property.

EXTRAORDINARY ASSUMPTION

1. It is an extraordinary assumption that the reported sales and remaining land development costs as received from the builder are true and accurate. We have reviewed both the sales and cost information and they appear reasonable. We have reviewed sample sales against public records in order to verify the sample sales, however we have not reviewed each sale against public record. Additionally, we are not experts in cost estimating and if the cost estimates change, it may change the value conclusions.

It is an extraordinary assumption that the two parks, Westside Park and Eastside Park along with the recreation center are completed in a timely manner and do not slow or thwart development, sale or closing of any homes within Menifee CFD No. 2022-3 IA 1.
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PURPOSE OF THE APPRAISAL

The purpose of this appraisal report is to estimate the value of the fee simple interest of the subject property, subject to the special tax lien of the City of Menifee CFD No. 2022- 3 IA 1, 2026 Series Special Tax Bonds.

THE SUBJECT PROPERTY

The subject property is located along the south side of Rouse Road, east of I-215. The subject is encompassed by Menifee CFD No. 2022-3 IA 1 and is proposed for 491 single- family detached homes spread over seven tract maps (Tract Map Nos. 37408-1, 37408- 2, 37408-3, a portion of 37408-4, 37409-1, 37409-2 and 37409-3) being built out as Improvement Area 1 of the master planned community of Legado. Legado is proposed for 1,022 single family detached homes with Improvement Area 1 generally the northern portion of the entire master plan. Within Improvement Area 1 Lennar is now building and selling homes within four product lines: Sonrisa, Tesoro, Armonia and Belleza. Within Improvement Area No. 1, Sonrisa consists of 162 proposed homes; Tesoro consists of 99 proposed homes; Armonia consists of 119 proposed homes and Belleza consists of 111 proposed homes, for a total of 491 proposed homes. KL LB Buy 1 LLC (a related entity to Kennedy Lewis) is a holding company which Lennar is using as the land banker.

As of the date of value, Lennar has taken down 201 Lots (127 of those have been closed to homebuyers) with 290 lots under the KL LB Buy 1 LLC ownership. As of the date of value of this report, Legado Improvement Area No. 1 (including all four product lines) has a total of 127 completed homes closed to individuals, eight model homes, 30 production homes over 95 percent complete (21 in escrow), 77 houses under construction (11 in escrow), and 249 additional finished lots (none in escrow). On the following page is a more detailed table showing the status and ownership of each lot _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 2

Description No. Lots Owner Condition/Status
Sonrisa - Lots 1-73 of Tract 37408-1, Lots 1-3 of Tract 37408-2 and Lots 1-86 of 37409-1 Lots 1-22, 44-50, 65-73 of Tract 37408-1 38 Individuals Completed Homes Lots 1-3 of Tract 37408-2 3 Lennar Model Homes (0 in escrow) Lots 51-52 and 63-64 of Tract 37408-1 4 Lennar Over 95% Complete (4 in escrow)
Lots 23-27, 39-43, 53-54 and 61-62 of
Tract 37408-1
14 Lennar Under Constr. (6 in escrow
Lots 28-31 and 35-38 of Tract 37408-1 8 KL LB Under Const. (0 in escrow) Lot 32-34 and 55-60 of Tract 37408-1 and
1-86 of Tract 37409-1
95 KL LB Finished Lots
Sonrisa Subtotal 162
Tesoro Lots 8-47 of Tract 37408-2 and Lots 1-59 of Tract 37409-3 Lots 9-29, 36-42 of Tract 37408-2; 28 Individuals Completed Homes Lot 45 of Tract 37408-2 1 Lennar Model Home
Lots 41-42 and 57-59 of Tract 37409-3 5 Lennar Over 95% Complete (5 in escrow)
Lots 43-56 of Tract 37409-3 14 Lennar Under Const. (1 In escrow) Lots 17-22 and 39-40 of Tract 37409-3 8 KL LB Under Const. (0 in escrow) Lots 8, 30-35, 43-44 and 46-47 of Tract
37408-2 and 1-16, 23-38 of Tract 37409-3
43 KL LB Finished Lots
Tesoro Subtotal 99
Armonia – Lots 6-7 and 48-49 of Tract 37408-2 and Lots 1-115 of Tract 37408-3 Lots 1-24 and 77-81, 87, 88-89 of Tract
37408-3

32 Individuals

Completed Homes
Lots 6-7 of 37408-2 2 Lennar Model Homes
Lots 82-86, 90-96 of Tract 37408-3 12 Lennar Over 95% Complete (4 in escrow)
Lots 97-100 of Tract 37408-3 4 Lennar Under Const. (0 in escrow) Lots 58-61 and 72-76 of Tract 37408-3 9 KL LB Under Const. (0 in escrow) Lots 48-49 of Tract 37408-2, Lots 25-57,
62-71 and 101-115 of Tract 37408-3.
60 KL LB Finished Lots
Armonia Subtotal 119
Belleza – Lots 4-5 of Tract 37408-2; Lots 1-42 of Tract 37408-4 and Lots 1-67 of Tract 37409-2 Lots 1-26 and 40-42 pf Tract 37408-4 29 Individuals Completed Homes Lots 4-5 of 37408-2 2 Lennar Model Homes
Lots 27-31, 36-39 of Tract 37408-4 9 Lennar Over 95% Complete (8 in escrow)
Lots 32-35 of Tract 37408-4 4 Lennar Under Const. (1 in escrow) Lots 42-47 and 58-67 of Tract 37409-2 16 KL LB Under Const. (3 in escrow Lots 1-41 and 48-57 of Tract 37409-2 51 KL LB Finished Lots Belleza Subtotal 111
Menifee CFD No. 2022-3 IA 1 Total 491
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INTENDED USE OF THE REPORT

It is the appraiser’s understanding that the client, the City of Menifee, will utilize this report in disclosure documents associated with selling the first series of bonds for Menifee CFD No. 2022-3 IA 1 and that this report is to be included in the Official Statement or similar document to be distributed in connection with the offering of the bonds. It is the appraiser’s understanding that there are no other intended uses of this report.

DEFINITIONS

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

1. buyer and seller are typically motivated;

2. both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest;

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

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

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

Inherent in the Market Value definition is exposure time or the time the property would have had to have been exposed on the open market prior to the appraisal in order to sell at the concluded values. In the case at hand and considering current market conditions the exposure time for the builder-owned lots and houses or for an individually owned home is under one year.

1 The Appraisal of Real Estate, 13th Edition
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Minimum Market Value
The term “Minimum Market Value” as used in this report is defined as:
“The base market value of a home. That is, most buyers purchase some upgrades, options and/or lot premiums when purchasing a new home. The sales price for the new home typically includes the base price for the plan, plus any upgrades, options or lot premiums, less concessions, if any, which were given or paid for by the builder. The concluded minimum market value is for the base value of the plan only, not taking into consideration any upgrades, options or premiums; however, does take into consideration concessions given by the builder.”
Mass Appraisal
The term “Mass Appraisal” as used in this report is defined as:
“The process of valuing a universe of properties as of a given date using standard methodology employing common data and allowing for statistical testing”2

In the case at hand, the statistical testing included reviewing all original builder sales, reviewing the Multiple Listing Service for re-sales and current escrows (if any) and determining the actual range of sales and escrow prices for each plan type which is utilized in the valuation process.

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

The Hypothetical Condition within this report is that subject property is enhanced by the improvements and/or fee credits to be funded by bonds issued by the 2026 series of bonds for Menifee CFD No. 2022-3 IA 1.

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

2 USPAP 2020-2021 Edition
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The first extraordinary assumption in this report is that the reported sales information and remaining land development cost information, as received from the builder, are true and accurate. We have reviewed the sales information and verified samples against public record information; however, all sales have not been verified through public record. In addition, we have reviewed the costs and they appear reasonable; however, we are not experts in the field of cost estimating. It should be noted that these costs were relied upon in the valuation of the subject properties and if the actual costs differ, it could alter the value conclusions.

The second extraordinary assumption in this report is that the completion of Westside and Eastside parks along with the completion of the recreation center does not slow or thwart the obtaining of building permits or certificate of occupancy permits on the homes.

Per the current development agreement Lennar can obtain 200 occupancy permits in the west side tracts (37408-1, 37408-2, 37408-3 and 37408-4) prior to Westside Park being completed and 95 occupancy permits in the eastside tracts (37409-1, 37409-2 and 37409-3) prior to Eastside Park being completed. Westside Park is currently estimated to be completed in the fall of 2026 and Eastside Park by year-end. The builder does not believe this condition of development will hinder the project and believes the parks will be completed or the city will work with the builder to release permits prior to the parks being completed. To date, individuals own 127 homes in the west side tracts and no homes in the east side tracts within Legado, Improvement Area No. 1. It is assumed that construction, completion and occupancy of the homes is not affected by this issue.

PROPERTY RIGHTS APPRAISED

The property rights being appraised are of a fee simple interest, subject to easements of record and both series of Menifee CFD No. 2022-3 IA 1 bonds. The definition of “fee simple estate” is defined by USPAP as:
“absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.”

EFFECTIVE DATE OF VALUE

The subject property is valued as of March 3, 2026.

DATE OF REPORT

The date of this report is April 2, 2026.

SCOPE OF APPRAISAL

As previously stated, the purpose of this appraisal is to report the appraiser’s best estimate of the market value for the subject properties. This appraisal will be presented in the following format:

 County of Riverside Description
 City of Menifee Description
 Immediate Surroundings
 Brief Description of City of Menifee CFD No. 2022-3 IA 1  Subject Property Description
 Riverside County Housing Market Discussion
 Highest and Best Use Analysis
 Valuation Procedures, Analyses and Conclusions
 Appraisal Report Summary

The subject property consists of 491 proposed single-family houses within seven contiguous tract maps being built out into four communities. Between all four communities there are 127 homes completed and closed to individuals, eight models, 30 production homes over 95 percent complete (21 in escrow), 77 homes under construction (11 in escrow), and 249 lots. In valuing the subject property, the value estimates will be based upon the highest and best use conclusion using the Sales Comparison Approach. The Sales Comparison Approach to value is defined as:

“…a set of procedures in which a value indication is derived by comparing the property being appraised to similar properties that have been sold recently, then applying appropriate units of comparison and making adjustments to the sale prices of the comparables based on the elements of comparison. The sales comparison approach may be used to value improved properties, vacant land, or _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 7
land being considered as though vacant; it is the most common and preferred method of land valuation when an adequate supply of comparable sales is available.”3

In the Sales Comparison Approach, market value is estimated by comparing properties similar to the subject property that have recently been sold, are listed for sale or are under contract. Along with the Sales Comparison Approach, a Discounted Cash Flow Analysis is considered for the builder-owned existing homes. Due to the number of homes under a single ownership, a bulk value is needed in order to determine the current market value.

Neither a cost nor income approach was utilized as they were not considered necessary to arrive at credible results.

The due diligence of this appraisal assignment included the following:

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

2. Gathered and analyzed information on the subject marketplace, reviewed several real estate brokerage publications on historical and projected growth in the subject market and researched the micro and macroeconomics within Riverside County and the Menifee area.

3. Inspected the subject property between January 15, 2026, and March 3, 2026.

4. Had the property flown for an aerial photograph on February 12, 2026.

5. Interviewed representatives from the builder to obtain available information on the subject property.

6. Reviewed Preliminary Title Reports on the subject property.

7. Reviewed the City of Menifee General Plan Land Use Map, Zoning Map, tentative map/site plan and recorded Tract Maps regarding entitlements and allowances on the subject site.

8. Reviewed the Legado Specific Plan.

9. Searched the area for relevant comparable new home residential projects, including sales prices and concessions and interviewed representatives from each comparable neighborhood.

3Dictionary of Real Estate Appraisal, 4th Edition, 2002 _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 8

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

11. Reviewed actual builder sales information on all closed homes and current escrows for each neighborhood.

12. Reviewed Multiple Listing Service (“MLS”) information on re-sales and current listings of existing homes within City of Menifee CFD No. 2022-3 IA 1.

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

REGIONAL AREA MAP

COUNTY OF RIVERSIDE AREA DESCRIPTION

Location
The subject property is located in the southwestern portion of Riverside County (the “County”) east of I-215 along the south side of Rouse Road, north of McCall Boulevard at Sherman Road in the northern portion of the City of Menifee (“City”). The County encompasses approximately 7,300 square miles, and includes large expanses of undeveloped deserts, valleys, canyons, and mountains. The County is a major beneficiary of outward urban pressure from Orange and Los Angeles Counties as well as growth from San Diego County to the south. Although located at the periphery of most urban activity in Southern California, Riverside County, particularly the western area, has been a major growth area and is perceived by most observers as an area expected to continue to grow. Riverside and San Bernardino Counties are considered distinct from Los Angeles and Orange Counties and belong to the same Metropolitan Statistical Area (“MSA”). This area, consisting of San Bernardino and Riverside Counties, is commonly referred to as the Inland Empire.

Transportation
The subject property is situated northeast of I-15, just east of I-215, along the south side of Rouse Road in the northern portion of the City. I-15 travels in a generally northerly/southerly direction and provides access to Barstow and Nevada to the north and San Diego to the south. The intersection of Highway 74 and I-15 is about nine miles southwest of the subject. Highway 74 provides access to the west into Orange County on what is also known as Ortega Highway and access to the east into the cities of Perris and Hemet. Interstate 215 is approximately 0.20 miles west, travels in a northerly/southerly direction within the County, branching off from I-15 and heading generally north where it parallels I-15 to the east and merges back into I-15 approximately 35 miles northwest of the subject in San Bernardino County. In addition, the 60 Freeway runs in an east-west direction approximately 15 miles north of the subject providing access into Los Angeles County to the west and merges with Interstate 10 to the east which provides access across California and into Arizona.
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The County is served by Amtrak and Metrolink as well as several rail freight lines. The Ontario International Airport provides regional air service and is located approximately 30 miles northwest of the subject property while the Orange County Airport is located approximately 40 miles west and the San Diego International Airport is located about 55 miles south. In addition, the County has extensive trucking corridors along the previously referred to interstates, highways, and state freeways.

0.2 percent following three years of decreasing population statewide. Current State projections for Riverside County suggest the population is anticipated to reach approximately 2.533 million by 2030, indicating an average annual increase of approximately 0.26 percent over the next five years. The forecasted population for 2030 was reduced from an estimated 0.7 percent annual growth rate over the past year. Future growth is predicted assuming a more stable market than was seen prior to the Great Recession.

Economy
The U.S. economy has experienced challenging times in the past five years due to reactions from the COVID disruption and changes in the federal administration. These economic challenges include significant inflation, volatile interest rates, banks’ instability, the unknowns on tariff agreements and reaching an agreement on the debt ceiling which shut down the government for 43 days ending November 12, 2025.

During COVID, the Federal, State, County and City Governments (“Governments”) originally shut down non-essential businesses and areas where social gatherings occur _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 12
in order to slow the spread of the virus. This created a strain on small and large businesses alike. Restaurants and hotels were hit hard and travel reduced drastically as citizens were urged to stay home. Layoffs occurred with reports of 40 million people filing for unemployment in the first few months of the pandemic. The Governments attempted to curtail the job losses and hardships with the approval of over $5.6 trillion in COVID relief to our nation. In addition, the Federal Reserve Board (“Board”) reduced interest rates and started quantitative easing by buying bonds. This legislation helped shore up the U.S. economy; however, due to the significant amount of new money introduced into the economy, inflation began occurring at a rate not seen for 40 years. In June 2022 the national inflation rate hit a peak of 9.1 percent with the current (January 2026) rate at 2.4 percent. This compares to a 1.4 percent annual inflation rate for 2020, a 4.7 percent annual rate for 2021, a 8.0 percent annual rate for 2022, a 4.1 percent annual rate for 2023, a 2.9 percent annual rate for 2024 and a 2.7 percent annual rate of 2025. This compares to an average of 1.74 percent annual rate for 2010 until 2020. Whether it was a result of world turmoil, supply chain issues due to the COVID disruption, additional money entering the economy or tariffs, inflation hit Americans hard.

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

5.50 percent from September 2023 until September 2024 with three decreases occurring through December 2024, ending with the rate at 4.25 – 4.50 percent. This rate continued until September, October and December 2025, with three additional decreases bringing the current FFR to 3.50 – 3.75 percent. At the first Board meeting of 2026, they kept the rate steady as they are closely watching all signs of the economy and do not want to create additional inflation. While the eleven increases appeared to help slow inflation, the quick, significant increases strained bank balance sheets and created significant volatility on home mortgages. The FFR increases which occurred between March 2022 and August 2023, increased a typical 30-year fixed mortgage rate from 2.98 percent as of November 10, 2021, to the high of 7.79 percent as of October 2023; however, the rate has dropped to 6.1 percent as of January 29, 2026 (per Federal Reserve Economic Data- St. Louis) with mortgage rates generally between 6.0 and 6.5 percent since October 2025. _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 13
This steep increase which occurred in mortgage interest rates significantly affected the real estate market. The first-time homebuyer pool grew up thinking interest rates were always sub-four percent and are still reeling from shock over the recent 6.0 to 7.0 percent rates. In order to combat the unaffordability of these higher rates, many homebuilders however, have been “buying down” the mortgage rates in order to keep new home sales going. This will be discussed further in the Riverside County Housing Market section later within this report.

On October 1, 2025, the US government shut down due to the government being unable to reach agreement on a spending plan. The main issue was the extension of health care subsidies which began during the COVID pandemic due to healthcare costs skyrocketing.

After a 43-day shutdown, an agreement was reached which extended money for most federal agencies until January 30, 2026, along with funding for food aid, the Department of Agriculture, Congress and veterans affairs until September 2026. While the government is again open and working, it appears there may be an additional partial shutdown as Congress cannot agree on Department of Homeland Security funding. No long-term decisions have been reached.

The COVID disruption to the economy also caused extreme volatility in the stock market with the Dow Jones Industrial Average (“DJIA”) dropping from 29,398 in February 2020 to 19,174 in March 2020, a drop of 37 percent. Government interventions resulted in a bounce back in the DJIA to 27,111 by June 2020 with the stock market then climbing up to a peak of 36,799 in January 2022. In February 2022, Russia began invading Ukraine which caused volatility in world economics followed by U.S. inflation resulting in a 20 percent drop to a low on September 30, 2022 (28,150) with a bounce back to between 33,000 and 34,000 throughout the majority of 2023. On October 7, 2023, Israel declared war on Hamas which added to the strain causing another drop of around eight percent with the low on October 27, 2023, to 32,417. The FFR rate increases began helping to stabilize the economy (reducing inflation) to a point where analysts began predicting decreases in the FFR in 2024. This occurred in late 2024 with three reductions which buoyed the stock market with a new high of 44,910 which was reached in late 2024. In 2025 the stock market saw volatility due to the new administration’s uncertain tariffs (hit _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 14
annual low of 38,315 in April), followed by a generally steady increase mostly due to the NASDAQ (tech heavy index) increasing about 50 percent, partially due to the race for Artificial Intelligence (“AI”). On February 28, 2026, the U.S. and Israel launched airstrikes on Iran, and it is too soon to tell how this will affect the U.S. economy. As of March 3, 2026, the DJIA is at 48,501, near the all-time high of 49,590 on January 12, 2026. It should be noted that the dollar has weakened with gold and silver at or near all-time highs.

Current concerns on the U.S. economy include the nation’s debt, global wars, tariff uncertainties and the debt limit which can only be increased through government approvals.

The significant increase in mortgage rates between 2022 and 2023 is just one part of the puzzle affecting the impact of new housing on the broader economy. Additional risks include homebuilders trying to find balanced inventory levels, supply chain issues, both wage and price increases, unknown tariffs on building materials, construction workers immigration status, the affordability index at all-time lows and persistent inflation. Over the past 25 years, the Inland Empire economy saw significant cycles with home prices almost doubling from 1995 to 2005, then falling by over 50 percent during the Great Recession, taking prices back to 2002 levels in 2011. Home values appeared to hit bottom in 2009 then remained essentially flat for two to three years with the majority of the Inland Empire housing market seeing an improvement beginning in mid-2012. Contrary to homebuilders’ original thoughts of a slowdown due to the pandemic, new home buyers stepped up in the spring of 2020 and new home sales were significantly higher during the second half of 2020 versus the previous year and continued extremely strong throughout 2021. This exceptional activity in new home sales was the one bright spot in the COVID recession and is thought to be due to several factors, including: a tight supply of resale homes; historically low interest rates; millennials finally buying homes; and the work from home factor which began during the pandemic and allowed residents to live in more suburban areas without long commutes. As rates began increasing in early 2022, there was a significant slowdown in home sales within the Inland Empire, with year-over-year decreases in home listings of about 30 percent between October 2022 and October 2023 as homeowners did not want to give up their low-interest mortgages. The scarcity of existing home listings put pressure on pricing as the demand for homes continued with _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 15
median home prices in the Inland Empire increasing about 50 percent from 2019 levels.

It should be noted however, the increase in pricing has slowed substantially with most indexes reporting a slight decrease over the past year.

While most jobs have come back, job losses were significant during the COVID recession as the Nation’s unemployment rate went from 3.5 percent in February 2020 to 14.4 percent in April 2020 with decreases through the fall season of 2020. Since that time the national unemployment rate generally ranged between 3.5 percent and 4.5 percent between December 2021 and today with the December 2025 National unemployment rate at 4.4 percent. The unemployment rate for the MSA was estimated at 5.1 percent (as of December 2025, most recent available per the Employment Development Department). This reflects a decrease from the peak during the Great Recession of 15.1 percent in 2010 and a decrease from the peak during COVID of 14.9 percent. As of December 2025, Riverside County’s unemployment rate was 5.2 percent and San Bernardino County had a 5.0 percent unemployment rate. The current unemployment rate for the MSA of 5.1 percent is the same as the California rate at 5.1 percent and higher than the December 2025 National rate of 4.4 percent. Below is a table comparing Riverside County’s unemployment rate to the unemployment rates of the surrounding counties as of December 2025.

Jurisdiction As of Unemployment Rate*
Los Angeles County Dec-2025 5.0%
Riverside County Dec-2025 5.2%
San Bernardino County Dec-2025 5.0%
Orange County Dec-2025 3.9%
San Diego County Dec-2025 4.4%
Source: State of California E.D.D.; *Not Seasonally Adjusted

The latest UCLA Anderson Forecast (“Forecast”) was issued December 3, 2025, with conflicting information as AI-driven investment continues to fuel growth however they state tariffs, immigration policy and weak labor markets are restraining momentum across key sectors. They anticipate a US economy which is expected to soften through the first quarter of 2026 before regaining strength later in the year. The AI-related investment was originally estimated at $250 billion in 2025 had surpassed $405 billion in December with further increases expected in 2026. Offsetting this, employment growth has slowed _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 16
sharply, they predict inflation to peak at 3.5 percent in early 2026, driven by pass-throughs from earlier tariff hikes. Overall GDP growth is anticipated to soften in early 2026, partly due to the temporary effects from the federal government shutdown, however later in 2026, GDP growth is expected to rebound.

California’s economy continues to outpace the nation’s in high-productivity sectors such as AI, aerospace and advanced manufacturing. Nearly 70 percent of all U.S. venture funding in early 2025 went to California and seven of the ten largest investment deals in the Americas in 2025 occurred in-state. This strength masks a growing divide as construction, non-durable goods manufacturing, retail and leisure and hospitality remain under pressure from federal spending reductions, tariffs, elevated costs and the early effects of deportation policies. Payroll job losses through the first eight months of 2025 (latest available at time of the Forecast) marked the first sustained decline since the pandemic. Housing remains a significant constraint within the State. Building permits have stayed subdued despite the elevation in home prices and the urgent need for new construction following the December 2024 and January 2025 wildfires. Workforce shortages tied to deportations, tariff-driven input costs and persistently high financing costs all contribute to slow progress in residential building. Goods movement offers a bright spot as air cargo volume is reflecting steady demand in higher-income households and businesses linked to the state’s technology sector. The Forecast calls for a gradual improvement beginning in late 2026 with unemployment rates averaging 5.5 percent in 2025, 5.5 percent in 2026 and 4.6 percent in 2027, employment growth at 0.6 percent in 2025, 0.7 percent in 2026 and 2.0 percent in 2027. Higher interest rates, shortages of construction labor and the rebuilding of damaged and destroyed homes lowered the residential construction forecast which is now anticipated to be 101,000 new permits in 2025 and grow to 121,000 by the end of 2027. These permit estimates are significantly down from the June 2024 Forecast when they anticipated 155,000 new homes in 2025.

As interest rates rose in 2022, existing homeowners didn’t want to give up their sub-four percent mortgages, so existing home listings slowed substantially which increased new home sales. This increase in sales was in addition to the COVID disruption increase in _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 17
new home sales. While new homes historically captured 10–13 percent of total home sales; over the past few years, new homes captured 25-30 percent of total home sales.

As a final indicator of overall economic activity for the region, we have reviewed the rise and fall of TEUs (Twenty-foot Equivalent Units – i.e., containers) being processed in the local ports. This is especially important for the Inland communities, as it represents much of the growth in development of West Coast distribution centers and warehouses in the Inland Empire linked to supply-chain nodes in the Pacific Rim. The chart below shows TEU activity at the Port of Long Beach. Generally, there had been increases since 2009 except for slight dips in 2016, 2019, 2022 followed by an over 12 percent dip in 2023 due to cooling consumer demand. The calendar year 2024 saw an over 20 percent increase while in 2025 there was a 2.5 percent increase, back to a typical overall trendline.

Government

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

4.05.06.07.08.09.010.011.0'09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 25TEU's (millions)YearPort of Long Beach TEUs _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 18
Education
Menifee Union School District (K thru 8th) and the Perris Union High School District serve the subject area. The Menifee Union School District operates 11 elementary schools and four middle schools, one K-8 school (Harvest Hill STEAM Academy), two alternative schools and one preschool. It should be noted that Hans Middle School (which serves the subject area) will be teaching K-8 beginning in the 2026/27 school year. Perris Union High School District covers a larger area than Menifee Union and operates five high schools, four alternative high schools and one alternative middle school to serve the greater Perris area including Menifee. Higher education is available within an hour’s drive at the University of California campuses at Riverside and Irvine or California State University campuses in San Bernardino, San Marcos, Fullerton, and Pomona along with several additional private colleges. The closest community college is Mt. San Jacinto College, which has a campus in Menifee.

Conclusion
Population in the County has increased over the past 20 years with predictions for continued population growth. The Nation’s economy has been slowing after the Federal Reserve Board increased the Federal Funds Rate over five percent to fight historical inflation which began during COVID. One bright spot during COVID was housing. The region’s relative affordability and low interest rates, coupled with the rising prices in the coastal market and the demand for housing, set up a new housing boom in the Inland Empire. This was followed by a significant drop in existing home sales due to existing homeowners being unwilling to give up their low-rate mortgages, which turned out to be a boon for new homes. Current concerns for the Inland Empire economy include the unknowns of the new Administration, inflation, the high prices of homes, mortgage interest rates, supply chain issues, unknowns of labor, and world conflicts, which are all creating volatility in both local and global financial markets. In conclusion, the County is expected to continue to grow in population due to its Southern California location, the availability of land, and the relatively lower land and housing prices in comparison to adjacent Orange, Los Angeles, and San Diego Counties.
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MENIFEE AREA MAP

CITY OF MENIFEE DESCRIPTION

The subject property is situated in the northern portion of the City of Menifee, which is located in the southwestern portion of the County. Menifee became a city in October 2008 after voting to incorporate. Menifee was the 26th city within the County of Riverside and is located along both sides of I-215 between Murrieta and Perris. The City includes the diverse lifestyle communities of Menifee, Sun City, Quail Valley, and portions of Romoland. The City is bordered by unincorporated lands and the City of Murrieta to the south, the cities of Lake Elsinore and Canyon Lake to the west, the City of Perris, area of Winchester and unincorporated lands to the north and unincorporated lands (portion known as the French Valley and portion known as Winchester) to the east.

In the 1960s, early development of the Menifee Valley began when the concept of an active retirement community was envisioned for Sun City. Since that time the Menifee Valley has grown substantially. At incorporation in 2008, the City of Menifee had a total population of 60,000 residents. The Menifee Valley includes some portions of Romoland that are not included within the city limits. Although this area currently serves as a bedroom community for the workforces of North San Diego County, Temecula, Riverside, Corona and Orange County, economic development groups are in the process of recruiting future quality employers to relocate in the Menifee Valley. Per the City’s website, the “Business Friendly” City is investing more than $484 million in infrastructure and traffic improvement projects over the next five years. There have been many new commercial developments in the past 15 years on the I-215 corridor south of McCall Boulevard. In addition, there are about twenty residential projects either under construction or in planning or engineering with Legado (subject property - proposed for 1,022 new homes) and Underwood (543 new homes) at McCall and I-215, Menifee Valley (1,718 residential units) at Matthews and Briggs, Salt Creek (325 proposed units) at Briggs and Simpson, the Menifee Village SPA Amendment to increase residential units, Banner Park II (182 new homes), Rockport Ranch (305 units), Nautical Cove (239 proposed units) and 394 proposed units in the Cantalena Specific Plan. This list includes only the larger (150 or more units) developments on the east side of I-215 in Menifee, _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 21
which total over 4,500 proposed single family residential units either under construction or in the planning stages.

Between 1990 and 2003, there was an extraordinary growth rate of 48 percent in the community of Menifee. The population is estimated at 115,316 as of January 2025 per the California Department of Finance (most recent available), representing a growth of

1.3 percent year-over-year. This compares to the Riverside County past year’s growth of

0.2 percent from January 2024 to January 2025. The City’s higher growth rate than the County is due to the wide expanses of land available for development within the city, and because of the currently selling planned communities such as Cimarron Ridge (Pulte), Ladera (KB Home) and Quartz Trail (Lennar) west of I-215 and east of I-215 is Legado (subject - Lennar), Banner Park II (Pulte) and Nautical Cove (KB Home). Additionally, just outside of the city limits to the east in the unincorporated area of Winchester there is Acadia (Beazer), La Ventana (DR Horton), Creekstone (KB Home), Leon Ridge (Beazer), The Woods (Richmond American and Foremost) and Outlook (TriPointe) while in the French Valley area (south of Winchester) there are Canterwood (DR Horton and KB Home) and Brevarde (Richmond American).

In the past 15 years Menifee has had exceptional growth in the commercial and retail sector. Prior to the Great Recession several shopping centers were either constructed or planned. Included are the Town Center Marketplace, which is anchored by Aldi Market, PetSmart, and several national restaurants (located at the southwest corner of Haun and Newport Roads), and the popular Menifee Countryside Marketplace, which is anchored by Target, Lowe’s, Kohls, Ulta, TJ Maxx, Best Buy and Home Goods along with numerous restaurants (located at the southwest quadrant of I-215 and Newport Road). The Town Center Specific Plan (“TCSP”) includes 170 acres of mixed use with a proposed City Hall, a Fairfield Inn & Suites by Marriott on Town Center Drive (now open), the Family and Civil Courthouse, along with several completed new home neighborhoods and Riverwalk Village at Town Center by Richmond American which is currently selling. While the Krikorian retail center and partially completed theaters were demolished in 2025 after several years of litigation, other new commercial development has proceeded within TCSP, with both Center Pointe (retail northwest of the theaters) and Menifee Plaza (retail _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 22
northeast of theaters), which front Newport Road, opening in 2025. Along the north side of Newport at Haun Road is a newer commercial area that houses the Menifee Union School District’s administration building, the existing City Hall, a Post Office, and several national chain restaurants. In the subject’s immediate area, WalMart has proposed a new store at the northeast quadrant of I-215 and McCall Boulevard.

The Menifee community also benefits from its proximity to Diamond Valley Lake, which was dedicated on March 18, 2000, and initially filled by the end of 2002. Diamond Valley Lake is located approximately five miles east of the City and is a 13,000-acre site with a 4,500-acre reservoir for boating and fishing. There is no swimming, water skiing or personal watercraft allowed in Diamond Valley Lake. The reservoir contains 800,000 acre-feet (260 billion gallons) of water and is owned by the Metropolitan Water District.

Access to Diamond Valley Lake is via Newport Road which becomes Domenigoni Parkway about 1.5 miles east of I-215 near Winchester.

Land prices in the Menifee area have been historically lower than prices in the Murrieta and Temecula areas. As housing prices increased during the COVID disruption, the price difference narrowed between Menifee and Murrieta/Temecula, however, there is still a variance. The price difference appears to be due to the Murrieta/Temecula area being along the I-15 corridor, which commands a premium due to easier commuting to adjacent counties. Menifee is located along the I-215 corridor, which creates a slightly longer commute to employment centers.

As discussed under the economy section under County of Riverside Area Description, new home sales had prospered during the COVID pandemic and Menifee is no exception.

Per the February 22, 2026, Ryness Report (a new home sales tracking and research company), there are 44 new home projects currently selling in the South Riverside submarket with 19 of the 44 new home projects located in Menifee. This compares to 46 new home projects within the South Riverside submarket selling one year ago, with 16 in Menifee. In further review, nine of the communities in Menifee in February 2025 have sold out and closed and 12 new communities have opened, suggesting Menifee is a strong market with new home communities opening in the past year. The average sales rate per _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 23
project year to date for the week ending February 22, 2026, in the South Riverside submarket was 3.4 homes per month which is the same as in 2025. In comparing the South Riverside Submarket with the overall Inland Empire, the average sales rate per project year to date as of February 22, 2026, the sales rate per month was 3.0 sales while the average 2025 sales rate per project was slightly higher at 3.3 sales per month.

In summary, the future growth of Menifee should continue. While there are a slightly higher number of new home communities currently selling in the city compared to one year ago, several have sold out and closed and new communities have opened.

Additionally, there are a significant number of new home communities in the planning stages, suggesting population growth. Housing is less expensive than the Murrieta/Temecula neighboring communities, which is attractive to homebuyers as price points are important in today’s Inland Empire housing market. Diamond Valley Lake is another asset to the Menifee Valley area. The lower land prices and the availability of land for development combine to make Menifee an excellent candidate for future growth.

LEGADO SPECIFIC PLAN / IMMEDIATE SURROUNDINGS

The subject property is located within The City of Menifee Legado Specific Plan (SP2017- 187 “Specific Plan”) which was adopted June 17, 2020. The entire Specific Plan covers an estimated 331 acres and is proposed for 1,061 total dwelling units. This appraisal is for Improvement Area 1 of Legado or generally the northern portion of the entire Specific Plan. Below is an outline of the entire Legado Specific Plan with the subject area outlined in red.

The entire Specific Plan is generally bounded by Encanto Drive and I-215 to the west, Rouse Road to the north, Antelope Road to the east and Chambers Avenue to the south (with the exception of the community park site and a commercial site which are along the south side of Chambers Avenue). Per the Specific Plan, there are 20.1 acres of commercial use (along the west side of the project with I-215 Freeway visibility) and 216 acres of residential use. In the above map, the red areas along Encanto Drive on the western border are zoned for commercial use. Below is a table showing the residential Planning Areas, their acreage, number of units allowed and minimum lot size with the subject property in shaded grey.

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P.A. Min. Lot Size Acres Density # DUs
West Village
1 5,000 sf 14.2 5.2 74
2 6,000 sf 10.6 4.7 50
3 5,500 sf 23.8 4.9 117
4 7,000 sf 10.9 3.9 43
5 7,000 sf 4.3 4.7 20
6 5,000 sf 17.9 5.5 99
7 6,000 sf 17.2 4.7 80
East Village
8 5,000 sf 15.6 5.6 88
9 7,000 sf 18.0 3.8 68
10 5,500 sf 12.9 4.7 60
11 5,500 sf 18.7 5.1 96
12 7,000 sf 12.4 4.5 56
13 5,000 sf 14.6 5.5 81
14 7,000 sf 12.5 4.7 59
15 5,500 sf 13.3 5.3 70
Totals 216 4.9 Avg. 1,061

While there are 500 dwelling units allowed within the subject seven planning areas, the recorded tract maps allow for 491 residential units which is within the allowed number of units. The Legado master planned community’s amenities include a proposed pool, playground, soccer field, clubhouse, tot lot, community center, sport court, picnic area, dog park, greenbelt, trail and BBQ areas.

The subject site is located along the southern side of Rouse Road, east of I-215 in the northern portion of the City of Menifee. The project has access from I-215, east on McCall Boulevard, north on Encanto Drive to Rouse Road and east to the subject site. There are three entrances into the subject property off Rouse Road, which are Rockabilly Road, Sherman Road and Ballad Boulevard. North of the Specific Plan beyond Rouse Road are existing residences and a vacant parcel proposed for residential development. To the west is the commercial designated parcel which is vacant and a detention basin, beyond which is Encanto Road, beyond which is I-215 with existing residences in the area known as Sun City west of I-215. To the south is the Hans Middle School (expanding to a K-8 school in the 2026/27 school year), existing residences, a skilled nursing facility, a mobile home park and a vacant parcel on the southeastern border. East of the Specific Plan are existing residences and a vacant hilly parcel which is open space within Shadow Mountain, the master plan to the east which was developed by KB Home over the past five years.
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Access is excellent with an offramp from I-215 at McCall Boulevard and east to Encanto Drive (frontage road to I-215) and north to Rouse Road, or east to Sherman Road and north to the subject. South of McCall Boulevard is generally existing residential along with some vacant commercial zoned parcels. There is a gas station at the northeast corner of I-215 and McCall Boulevard with a large vacant parcel at the northeast corner of Encanto Drive and McCall Boulevard which is planned for a new WalMart. Further east on McCall Boulevard is the Menifee Global Medical Center Hospital, the aforementioned Shadow Hills Development by KB Home, Boulder Ridge Elementary, Heritage Village, which was developed by Lennar and Heritage Lake, a large master planned development which was built out by several homebuilders over the past 20 years.

The nearest shopping center is available about one-half mile west at a Stater Bros. anchored neighborhood shopping center which is adjacent to a Von’s Supermarket anchored center, both located generally at the southwest quadrant of I-215 and McCall Boulevard. More regional shopping is available within three miles south at the southwest quadrant of I-215 and Newport Road at Countryside Marketplace which is anchored by Home Goods, Lowe’s Home Improvement, Target and Kohls along with many national restaurant chains. In addition, there is an Aldi supermarket across from the Countryside Marketplace beyond which is Menifee Town Center with a new Sprouts Farmers Market.

Approximately twelve miles south is Promenade Temecula, a major shopping mall anchored by Macy’s and JC Penney, located off the I-15 near the intersection of I-215 and Winchester Road (State Route 79). Future neighborhood shopping is anticipated to be at the proposed WalMart center at I-215 and McCall Boulevard.

The subject property is located within the Menifee Union School District (K-8th) and the Perris Union High School District (9th -12th). The community is served by Heritage High School, about two miles northeast; Hans Middle School located adjacent to the Legado Specific Plan to the south at Sherman Road and Chambers Avenue and Freedom Crest Elementary School located about 2.5 miles southeast of the subject. Beginning in the 2026/27 school year, Hans Middle School will house both TK – 5th grade and 6-8th graders and will be known as Hans Christensen Academy and is located adjacent to the Legado Specific Plan.
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CITY OF MENIFEE CFD NO. 2022-3 IA 1 (LEGADO)

Menifee CFD No. 2022-3 IA 1 (Legado) Improvement Areas 1 and 2 was formed per the Resolution of Formation of the City Council of the City of Menifee dated September 21, 2022. Additionally, the City Council adopted a change of proceedings to divide Improvement Area 2 into Improvement Areas 2 and 3. Per the City of Menifee CFD No. 2022-3 CFD Report, the CFD is comprised of approximately 263 gross acres anticipated to include a total of 1,022 residential properties at buildout. The commercial lands within Legado are not included. Menifee CFD No. 2022-3 IA 1 is divided into three tax zones and is encompassed by Tract Maps 37408-1, 37408-2, 37408-3, Lots 1-42 of 37408-4, 37409-1, 37409-2 and 37409-3 which total 491 proposed single family detached residential properties (subject property). The boundary map is shown below with a red star on Improvement Area 1, generally the north portion. A larger version of the boundary map is located in the Addenda.

Per the CFD Report prepared by Spicer Consulting Group and dated November 6, 2024, the types of facilities that are proposed by Menifee CFD No. 2022-3 consist of the

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construction, purchase, modification, rehabilitation, expansion and/or improvement of (i) drainage, library, park, roadway, traffic, administration and general government facilities, animal shelter facilities, fire and safety and other public facilities of the City including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended (the “City Facilities”); (ii) water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of the Eastern Municipal Water District which are included in EMWD’s water and sewer capacity and connection fee programs (the “Water District Facilities”) and (iii) interim and permanent school facilities of the Menifee Union School District and Perris Union High School District, including classrooms, multi-purpose facilities, administration and auxiliary space at school facilities, athletic fields, playgrounds and recreational facilities and improvements thereto, landscaping, access roadways, drainage, sidewalks and gutters and utility lines, furniture, equipment and technology, including technology upgrades and mobile devices and infrastructure therefore, with a useful life of at least five (5) years at such school facilities (the “School Facilities” and together, with the City Facilities and the Water Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities. In addition, incidental expenses include the cost of engineering, planning and designing the Facilities; and all costs including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District and any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.

Per the CFD Report, the Cost Estimate of facilities to be financed through the issuance of CFD No. 2022-3 bonds is estimated to be $23,079,160 for Improvement Area 1, $9,595,492 for Improvement Area 2 and $14,954,029 for Improvement Area 3. The Estimated Bond Allocation per the CFD Report is as shown on the following page.

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IA 1 IA 2 IA 3 Bond
Allocation
Total Eligible Fees/Improvements $23,079,160 $9,595,492 $14,954,029 $47,628,681 Incidental Financing Costs $3,565,840 $1,649,508 $2,410,971 $7,626,319 Total Funded by Bond Proceeds $26,645,000 $11,245,000 $17,365,000 $55,255,000

The above amounts are allocated based upon estimated bond sizing and may change based upon market conditions at time of bond issuance. The above dollars are based on fiscal year 2024/2025 dollars. It is the appraiser’s understanding that the Improvement Area 1 bonds will be issued in two series, and this appraisal is for the first series of bonds.

Per the CFD Report, the Assigned Special Tax within Menifee CFD No. 2022-3 IA 1 for Tax Zone 1 ranges from $2,588 to $3,139 per residential unit; for Tax Zone 2 ranges from $2,731 to $3,195 per residential unit and for Tax Zone 3 ranges from $2,847 to $3,484 per residential unit with all amounts based on building square footage. For Improvement Area 1, on each July 1, commencing on July 1, 2023, the assigned special tax shall increase by two percent of the amount in effect in the prior fiscal year.

Per the latest sources and uses of funds for the first series of bonds for Menifee CFD No. 2022-3 IA 1 (Legado) dated April 2, 2026, they are projecting a bond par amount of $15,445,000 which is adjusted by the Net Original Issue Discount amount of $84,713, plus the collected net special taxes of $92,639 totaling $15,452,926. The expenditures include $13,618,680 of project fund deposits, a debt service reserve fund of $1,376,183 and costs of issuance and underwriter’s discount of $458,062 (all estimated amounts subject to change).

SUBJECT PROPERTY DESCRIPTION

The subject property consists of 491 proposed single-family homes which is comprised of Improvement Area 1 of the Legado Specific Plan. Lennar is building and marketing the homes. The 491 lots are divided among seven tract maps and include four single-family detached neighborhoods within the Legado master plan: Sonrisa, Tesoro, Armonia and Belleza. Below is a phasing map showing all of Legado with the subject property outlined in red.

Location: South side of Rouse Road at Sherman Road, Menifee, California

Legal Description: Lots 1-73 of Tract No. 37408-1; Lots 1-49 of Tract No. 37408-2; Lots 1-115 of Tract 37408-3; Lots 1-42 of Tract 37408-4; Lots 1-86 of Tract 37409-1; Lots 1-67 of Tract 37409-2 and Lots 1-59 of Tract 37409-3, all located in City of Menifee, County of Riverside, California.

Owner of Record: Individual owners as to 1-22, 44-50 and 65-73 of Tract 37408-1; Lots 9-29, 36-42 of Tract 37408-2; Lots 1-24, 77-81 and 87-89 of Tract 37408-3; Lots 1-26 and 40-42 of Tract 37408-4.

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Lennar Homes of California LLC as to Lots 23-27, 39-43, 51-54 and 61-64 of Tract 37408-1; Lots 1-7 and 45 of Tract 37408-2; Lots 82- 86 and 90-100 of Tract 37408-3; Lots 27-39 of Tract 37408-4; Lots 41-59 of Tract 37409-3

KL LB Buy 1 LLC as to Lots 28-38 and 55-60 of Tract 37408-1; Lots 8, 30-35, 43-44 and 46-49 of Tract 37408-2; Lots 25-76 and 101-115 of Tract 37408-3; Lots 1-86 of Tract 37409-1; Lots 1-67 of Tract 37409-2; Lots 1-40 of Tract 37409-3.

Three-Year
Sales History: Lennar Homes of California, LLC, a California limited liability company purchased the entire subject property (Improvement Area 1 of Legado) from BLC Fleming LLC, a Delaware limited liability company with the date of contract being August 2023. The transaction was reportedly based on a finished lot price of $232,000 per representatives of Lennar Homes. The condition of the property at time of sale was rough graded. Lennar then transferred the property to KL LB Buy 1 LLC, a Delaware limited liability company (a land bank entity related to Kennedy Lewis). As of March 3, 2026, Lennar Homes of California, LLC has “taken down” 201 lots from KL LB Buy 1 LLC. Between August 20, 2025 and March 2, Lennar has closed 127 completed homes to individuals with an additional 32 homes in escrow.

It should be noted that Improvement Areas 2 and 3 were originally anticipated to be purchased by Lennar, however they have decided not to purchase the remaining Improvement Areas. They will be marketed to Lennar at a later date or to other builders.

Assessor’s Parcel
Numbers: The subject 491 lots encompass Assessor’s Parcel 344-020-001 thru 012; 344-021-001 thru 061; 344-030-001 thru 019; 344-031-001 thru 030; 344-040-001 thru 007; 344-041-001 thru 018; 344-042-001 thru 020; 344-043-001 thru 020; 344-050-001 thru 011; 344-051-001 thru 012; 344-052-001 thru 018; 344-053-001 thru 009; 344-060-001 thru 007; 344-061-001 thru 035; 344-410-001 thru 026; 344-411-001 thru 027; 344-412-001 thru 033; 344-430-001 thru 059; 344-420-001 thru 031; 344-421-001 thru 020 and 344-422-001 thru 016.

Property Taxes: We have reviewed the Riverside County Tax Collector’s 2025 tax bill for APN 344-030-002 which is one of the model homes owned by Lennar. There are two 2025 tax bills, one original and one supplemental. The total taxes for both tax invoices are $2,337.87 for ad valorem taxes, $307.81 for debt (total for M. San Jacinto Jr.

College, MWD East, Perris Union HS and Menifee School) and Special Assessments of $4,879.88 which includes $3,019.00 for CFD 2022-3 (subject), $1,076.14 for CFD 2017-1 (City Maintenance for Tax Zone 12), $420.08 for Menifee USD 2022-1 and $342.98 for _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 32
Perris Union HS CFD 92-1 along with $21.68 for miscellaneous services. It appears there will be a further updated supplement as the assessed value was based on $233,788. It is the appraiser’s understanding that the subject homes will have overall tax rates in the 1.90 – 2.00 percent range which is typical for new homes in the subject market area.

Flood Zone: Per FEMA Flood Map 06065C2060H effective August 18, 2014, the subject site is shown as Flood Hazard Zone X (area of minimal flood hazard).

Size and Shape: The subject site is irregular in shape and contains approximately 148.99 gross acres and 104.47 net acres per recorded tract maps.

It should be noted that the acreage for 37408-4 is estimated as it is a portion of the tract map. The difference between the gross and net acreages reported above includes internal streets, water quality and detention basins, two parks and the social club parcel along with some open space/landscaping lots, surrounding streets and setback areas.

Zoning: Per the City of Menifee Land Use Map, the subject site is shown as within the Legado Specific Plan (SP2017-187) which was adopted June 17, 2020. The Specific Plan designates the subject property as Planning Areas 1, 2, 3, 4, 8, 9 and 10 which when combined allow for up to 500 single family detached residential units on lot sizes ranging from 5,000 to 7,000 square feet. Per SP2017-187 the acreage for these planning areas totals 106.00 which suggests an overall density of 4.72 dwelling units per acre.

Entitlements: The subject property is covered by Tract Map Nos. 37408-1, 37408- 2, 37408-3, a portion of 37408-4, all recorded November 21, 2024, and Tract Nos. 37409-1, 37409-2 and 37409-3 which all recorded April 23, 2025. The maps are detailed in the table below

Tract No. Gross Ac. Net Ac. No. Lots Density
37408-1 15.87 10.47 73 4.6
37408-2 13.11 8.11 49 3.7
37408-3 45.88 36.73 115 2.5
37408-4* 15.43* 9.07* 42 2.9*
37409-1 23.35 15.61 86 3.7
37409-2 20.18 13.67 67 3.3
37409-3 16.17 10.81 59 3.6
Totals 148.99* 104.47* 491 4.7
*It should be noted that only a portion of Tract 37408-4 is within the subject property. The acreage has been adjusted downwards of 5.96 gross acres and 4.3 net acres from the actual -4 recorded tract map due to estimates on the acreage that is within Improvement Area 2.

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Dividing the 491 total lots over the 148.99 gross acres equates to an overall density of 3.3 dwelling units per acre which is within the allowed density per the Specific Plan. Copies of the above tract maps are located within the Addenda of this report.

Topography: The original topography was generally level to sloping. The property has been graded into 491 single family lots. The property is generally level with street grade of Rouse Road and Sherman Road, the northern border and central bisecting arterial. There is one hilly area to the northeast and the east which are open space areas within Shadow Mountain, a master plan built out by KB Home in the past few years. The lands have been graded and developed into single- family detached lots with sizes ranging from 5,000 to 7,000 square feet (minimum lot sizes). Drainage is within an engineered street drainage system with drainage outlets and retention basins where needed. There is a large water quality/detention basin located in Tract Map 37409-1 at the southeast corner of Sherman Road and Rouse Road. Ther are additional detention/water quality basins located outside of the subject property (Improvement Area 1), however within Legado which will serve the subject area.

Soils Condition: We have reviewed the Preliminary Geotechnical Evaluation for the 331-acre Fleming Ranch (former name of Legado) prepared by LGC Geotechnical Inc. and dated March 16, 2017. The report concludes that the proposed residential development is feasible from a geotechnical standpoint, provided that the recommendations presented in the report are incorporated in the design and construction of the project. It is an assumption of this report that the soils are adequate to support the highest and best use conclusion and that all recommendations made within any soil’s reports were adhered to during construction. This is supported by existing development on the subject lands which was overseen by City inspectors.

Seismic
Conditions: Per the County of Riverside, the subject is not located in a Fault Zone or in a Liquefaction Area.

Fire Hazard Map: Per the Cal Fire - Fire Hazard Severity Zone Map of Menifee, a small portion of the subject is located in a Very High Fire Hazard Severity Zone, a small portion of the site is located in a High Fire Hazard Severity Zone and a small portion of the site is located in a Moderate Fire Hazard Severity Zone while the major portion of the site is not located within a designated fire zone. A copy of the map with the subject property’s approximate boundary outlined in blue is located in the Addenda for your review.

Environmental
Conditions: We have received information regarding the 401 permit, the 404 permit, the burrowing owl survey and the cultural resources _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 34
monitoring program on the subject site. All appear to conclude that development of the subject site is feasible. We have not received a Phase I environmental assessment on the site. This appraisal assumes that there are no environmental issues that would slow or thwart development of the site. This is supported by existing development on the subject lands which was overseen by City inspectors.

Easements/
Encumbrances: We have reviewed seven Preliminary Title Reports which cover Tracts 37408-1, 37408-2, 37408-3, 37408-4. 37409-1, 37409-2 and 37409-3, all prepared by Lennar Title and dated September 15, 2025 (37408-2), December 2, 2025 (37409-2) and January 28, 2026 for the remaining of the tracts. The exceptions appear typical for subject- type lands in the area.

It is an assumption in this appraisal report that the subject lands are free and clear of any liens and/or encumbrances except for Menifee CFD No. 2022-3 IA 1 and the aforementioned assessments and CFDs. The appraiser is not a title expert, and it is recommended that any concerns relating to title should be addressed to the appropriate experts.

Utilities: All normal utilities serve the subject site by the following companies:
 Electrical: Southern California Edison Company
 Natural Gas: The Gas Company
 Sewer/Water: Eastern Municipal Water District
 Schools: Menifee Union School District /
Perris Union High School District

Streets/Access: Access to the subject property is via I-215 to McCall Boulevard, east to Encanto Drive (about 500 feet), then north about 0.75 miles to Rouse Road. There are three entrances off Rouse Road via Rockabilly Road, Sherman Road and Ballad Boulevard. The main access into the entire master plan of Legado will be from McCall Boulevard, east to Sherman Road and north to the entrance of Legado at Chambers Avenue which will take you into Improvement Area 3.

I-215 is a major Southern California Freeway beginning at the I-15 in Murrieta in Southern Riverside County and providing access north through Riverside and into San Bernardino where it combines with I- 15 once again.

McCall Boulevard is an east/west arterial with on/off ramps from I- 215 and provides access into the northern portion of Menifee. West of I-215 McCall provides access through the original Sun City area of Menifee and terminates at Valley Boulevard. To the east McCall Boulevard provides access to Legado and further east to Heritage _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 35
Lakes, a large master planned community and terminates at Briggs Road at the City limits.

Rouse Road is an east/west access road that begins from the east at Menifee Road in Heritage Lakes, provides access through Heritage Village, Shadow Mountain, Legado and stops at Encanto Road (at I-215). Across I-215 Rouse Road begins again providing access to residential areas and terminates at Byers Road.

Sherman Road is a north/south access road generally beginning at McCall Boulevard and providing access into the City of Perris, north of the subject site.

Internal streets within the subject site include Two Cellos Way, Sitar Circle, Ukulele Circle, Pennywhistle Way, Rockabilly Road, Cowbell Court, Fiddle Lane, Twist Street, Lute Lane, Zither Way, Duet Drive, Keyboard Court, Didgeridoo Drive, Lullaby Lane, Banjo Street, Paseo Legado, Sherman Road, Bongo Way, Maracas Way,
Tumbadora Drive, Ballad Boulevard, Percussion Road, Verato Drive, Allegro Court, Leggero Lane, Percussion Road, Flat Street, Stanza Lane, Glockenspiel Court, Timpani Place, Xaphoon Circle and Marimba Court.

Current Condition: The subject property has been developed into 491 single-family detached lots with minimum sizes ranging from 5,000 to 7,000 square feet. The lots have been graded with streets completed and utilities stubbed to each lot. As of March 3, 2026, 201 of the lots have closed to Lennar and 127 of those are completed homes which have closed to homebuyers. In addition, there are eight completed model homes, an additional 30 production homes over 95 percent complete, 77 homes under construction (under 95 percent complete) and 249 generally finished lots.

Conditions of
Approval: It is the appraiser’s understanding that there are three remaining conditions that may affect the subject property. Per Lennar representatives, Westpark has to be completed prior to the 200th certificate of occupancy within any of the 37408 tracts, Eastpark needs to be completed prior to the 95th certificate of occupancy on the lots within the 37409 tracts, and the recreation center needs to be completed prior to the 500th building permit being pulled. The builder anticipates that these three issues will not slow or thwart development, sales or closings within the subject property. It is an Extraordinary Assumption of this report that no building permits or certificates of occupancy are held up due to the completion of the parks or recreation center.

Remaining
Costs: The majority of the subject lots are in a physically finished lot condition with estimated remaining hard costs and fees for land _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 36
development including development fees (not funded by Menifee CFD 2022-3 2026 series bonds), parks/landscaping, walls, common area, streets, wet and dry utilities, grading, engineering costs and fees are estimated to be $29,915,179. This takes into account the CFD funded fees and improvements. The remaining costs for the subject property of $29,915,179 are associated with all of the builder/land bank-owned property which includes 364 lots (eight model homes, 30 homes over 95 percent complete, 77 lots with homes under construction and 249 remaining lots) suggesting an average amount of $82,184.55 per lot in remaining costs for each of the builder-owned parcels. These costs will be taken into consideration in the valuation section later within this report.

HOA Amounts: There is a Homeowner’s Association at Legado which will maintain the community pool and clubhouse, community lighting, the parks, the drainage basins landscaped areas and landscaping. The HOA monthly assessment for the overall community is currently estimated at $150 per month per home. Per Lennar representatives, the HOA amount may be reduced in the future if Lennar develops
Improvement Areas 2 and 3. For purposes of this analysis we are anticipating a $150 per month HOA fee.

Improvement
Description: Legado by Lennar includes four neighborhoods known as Sonrisa, Tesoro, Armonia and Belleza.
.

Sonrisa includes four floor plans on minimum 5,000 square foot lots with one single-story plan and three two-story plans with home sizes ranging from 1,539 to 2,069 square feet with two-car attached garages. Tesoro includes four floor plans which are all one-story on minimum 5,500 – 6,000 square feet lots. It should be noted that Tesoro Plan 1 is the same size and floorplan as Sonrisa Plan 1. The home sizes within Tesoro range from 1,539 to 2,231 square feet.

Armonia includes four floor plans with one single-story plan and three two-story plans, located on minimum 5,500 square foot lots. Armonia home sizes range from 1,936 to 2,589 with Plan 1 being identical to Plan 2 in Tesoro. Belleza includes four floor plans (however Plan 4 is not being offered at this time) with one single story plan and three two-story plans, all on minimum 7,000 square foot lots. Belleza home sizes range from 2,662 up to 4,184 square feet with the largest home being a next generation home which has a unit with a separate entrance and a kitchenette attached.

Sonrisa is more the “basic” model with additional upgrades included in Tesoro, Armonia and Belleza with Belleza having the most executive-type amenities. The information below is taken from the features listings on the Everything’s Included brochures for each neighborhood. All of the homes offer attached garages with finished walls, concrete tile roofs and roll-up insulated garage doors. Kitchens _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 37
include granite or quartz countertops, white thermofoil cabinets with finished interiors, concealed hinges and bar pulls, stainless steel appliances and a stainless sink. Upgrades in Tesoro and Armonia include double ovens while Belleza also includes upgraded appliances. All owner’s suites include dual top mounted sinks, Moen chrome faucets and 42” mounted mirrors along with a semi- frameless clear glass enclosed tub/shower and elongated toilets in a separate room and walk-in closets. The upper end homes include undermount sinks with some having separate soaking tubs and showers. Interiors include vinyl flooring at entry, kitchen, dining room, laundry and bathrooms, Shaw carpeting and upgraded 2-panel doors throughout and bullnose corners. The upper-end homes include ceramic tile flooring at entries Exteriors are either Spanish Colonial, Craftsman or Farmhouse influenced architecture for Sonrisa, Tesoro and Belleza with Armonia also having a Prairie option. All have side and rear vinyl fencing with a block return with vinyl gates and exterior coach lights. Energy efficiency includes electric water heaters, electric heat pump HVAC systems, dual glazed vinyl windows, low flow aerators on all bathroom faucets and low flow toilets. All homes have interior laundry rooms.

One hundred and twenty-seven of the 491 proposed homes have closed to individual homebuyers with closing dates between August 21, 2025, and March 2, 2026. Actual sales prices (including premium, upgrades, options, and all incentives) within Legado Improvement Area 1 ranged from $450,520 to $800,686. There are an additional 32 homes in escrow with estimated pricing from $601,990 to $826,377. Base pricing at Legado’s grand opening on April 26, 2025, ranged from $543,990 to $855,990 with current base pricing ranging from $534,990 to $851,990. It should be noted that Lennar is offering concessions including an interest rate buy-down for quick move-in homes. Total concessions per home within Legado have ranged from $0 to upwards of $130,000 with the average total concession equating to about $75,000 per home. All plans have seen small adjustments to base pricing ranging from a decrease of 2.5 percent to an increase of 1.4 percent.

Our search of the MLS revealed no closed resales and no homes listed on the resale market within Legado. Our physical search noted all homes appeared to be in excellent condition. The plans are detailed on the following page.

*One of each of these plans is a model home. There are an additional 77 homes under construction, and 249 additional finished lots.

Plan

Bd/Ba
Floors/
Parking

Sq. Ft.

Ind.

Owned
Homes
Bldr.

Owned
Homes
Sonrisa – 5,000 sf min lots
1 3 / 2 1 / 2 1,539 9 2*
2 3 / 2.5 2 / 2 1,696 10 1
3 3 / 2.5 2 / 2 1,862 10 2*
4 4 / 3 2 / 2 2,069 9 2*
Subtotal Sonrisa 38 7
Tesoro – 5,500 to 6,000 sf min lots
1 3 / 2 1 / 2 1,539 8 1
2 3 / 2 1 / 2 1,936 7 1
3 4 / 2 1 / 2 2,084 6 2
4 4 / 2 1 / 2 2,231 7 2*
Subtotal Tesoro 28 6
Armonia – 5,500 sf min. lots
1 3 / 2 1 / 2 1,936 9 3*
2 4 / 3 2 / 2 2,200 7 4
3 4 / 3 2 / 2 2,468 8 3*
4 4 / 3 2 / 2 2,589 8 4
Subtotal Armonia 32 14
Belleza – 7,000 sf lots
1 4 / 3 2 / 2 2,662 8 2
2 4 / 3.5 1 / 2 2,760 8 2
3 5 / 3 2 / 2 3,010 6 4*
4 5 / 3.5 2 / 3 4,184 7 3*
Subtotal Belleza 29 11
Total Legado 127 38
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RIVERSIDE COUNTY HOUSING MARKET

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

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

Economic Conditions
Over the past twenty-five years the Inland Empire has seen various cycles in the housing market. The Great Recession impacted the Inland Empire significantly and resulted in a longer recovery period than that of other Southern California regions. The rise and then fall of housing prices in the Inland Empire between 2004 and 2009 were considerably steeper than almost anywhere in the State. Unfortunately, this meant that the people who bought near the peak of the market likely faced significant negative equity. After essentially remaining flat for a few years, housing prices began to increase in late 2012 through January 2020. Once the COVID pandemic hit in March 2020, the economy entered what is now known as the COVID disruption. The housing market slowed down significantly early on, but by May 2020, new homes were going under contract and selling at well above average absorption rates from May 2020 through spring of 2022 in the region. Beginning in mid-2022, the new home market saw a slowdown in absorption rates _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 40
due to the increasing interest rates, the high prices of homes, and the high rate of inflation which was shaking consumer confidence. As interest rates and home prices remain elevated, sale absorption rates for 2025 continue to perform slightly lower than average.

While the economy is still challenging with inflation higher than two percent and unemployment generally on the rise, the new home market is holding steady with generally good absorption rates. The average absorption rate for the Inland Empire from 2020 – 2024 was 4.3 sales per month per project while the absorption rate for 2025 was

2.8 sales per project per month which is roughly a 33% decrease from the previous 5- year period average. The year-to-date monthly average for 2026 is 3.0 sales per project which suggests that sales may be picking up as January and February are typically slow sales months (Ryness Report dated February 22, 2026).

Economic growth in the Inland Empire was strong generally between 2015 (after the Great Recession), and until the economic shutdown due to COVID. The second half of 2020 and all of 2021 saw economic growth, however the first two quarters of 2022 saw GDP shrinking as interest rates rose and consumer confidence slowed. The most recent unemployment rate for the MSA is 5.1 percent (per the December 2025 EDD report most recent) which is lower than the previous month (5.4 percent) and slightly higher than one year prior (4.9%). While unemployment rates are still near historical lows, the inflation factor has significantly affected the economy.

The housing market played a large role in the past two recessions. In the Great Recession, due to increased interest rates and rising home prices between June 2004 and mid-2006, the market reaction was to create non-conventional financing alternatives, such as sub-prime and non-conventional mortgages, to artificially maintain the boom housing market of 2004 and 2005. By 2007, the housing market saw a shake-up because of the problems in the sub-prime and non-conventional mortgage markets, which played a role in the 2008 upheaval of Wall Street and contributed significantly to the U.S. economic downturn of the Great Recession. Due to stricter income verification on new loans and the lack of available credit, coupled with job losses and declining home prices, sales of new homes slowed for the next few years and essentially remained flat until mid- 2012 when home prices began a steady climb.
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During the COVID disruption, new home sales were one of the brightest spots in both the local and national economies. While new home sales slowed in March and April 2020 due to the onset of the COVID pandemic, both sales and prices increased significantly due to strong demand from May 2020 throughout COVID until spring 2022 when interest rate increases began affecting the home-buying market. A combination of increasing home prices and falling consumer confidence, added to the significant interest rate increases, began slowing new home sales significantly in mid-2022. Due to significantly higher mortgage interest rates, existing homeowners were not moving, which stifled the existing home market, making the new home market the only option for some. Both new home and existing home sales have slowed considerably from mid-2022 through the end of 2025. In January 2022 mortgage rates were 3.22 percent (for a typical 30-year fixed conventional mortgage) while as of February 26, 2026, the rate for the same loan is 5.98 percent, the lowest rate since late-2022. On a $500,000 fixed rate 30-year mortgage, the monthly payment for this loan has increased from $2,167 to $2,977 or over 37 percent.

The average 30-year fixed mortgage rate hit a high in November 2023 of 7.76 percent.

Per the Zonda National New Home Market Update in January 2026, the new home market in 2025 remained effectively flat relative to 2024. Buyers remained paralyzed by poor affordability and low confidence. With affordability improving, sales struggled to gain traction despite supply growth. This forced builders to lean heavily on aggressive price cuts and financing incentives to maintain sales momentum, move standing inventory and sell future homesites. They state that heading into 2026 the outlook is mixed. While the labor market is cooling, mortgage rates are finally showing signs of improvement.

Builders have also remained disciplined with supply which has helped prevent the type of surplus seen in past cycles. They believe that if lower rates succeed in drawing entry- level and high-equity buyers back into the market, the market may finally find its floor however the key unknown is employer hiring and firing plans.

On a more micro level, we have reviewed the Zonda Riverside-San Bernardino-Ontario (Inland Empire) Market Report dated January 2026. Per the New Home Pending Sales Index the year over Year change is a decrease of 9.4 percent, however the month-over- _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 42
month change is an increase of 8.7 percent. According to Zonda, affordability is the main driver in the slow sales with the current home price value 22 percent over the income supported price (based on both new and existing sales). The new home average closing price (both attached and detached houses) in the market is $595,000 or 4.9 percent below one year ago, while the average closing price of an existing home (again both attached and detached) was $565,000 which is a decrease of 0.9 percent from one year ago. Per Zonda there were 46,067 existing home closings during 2025 in the Inland Empire which is 1.6 percent higher than the prior year and 8,321 new home closings which is 26.5 percent lower than the prior year. Resale activity picked up in 2025, however remains sluggish once again, and new home sales are down compared to this time last year.

Zonda data also reveals that both overall quick move-in (QMI) housing supply and QMIs per community are up year-over-year. Correspondingly, home prices are generally trending down in many areas when you include all incentives being offered.

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

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

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

The Board increased the rate eleven times between March 2022 and August 2023, which _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 43
increased the FFR from 0-0.25 percent to 5.25-5.50 percent. From August 2023 to August 2024 the FFR was held flat. From September 2024 through December 2024, The Board lowered rates from 5.25% - 5.50% to 4.25% - 4.50%. Rates then stayed unchanged between January 2025 and September 2025, with the September, October and December meeting each delivering a 0.25 percent cut to the current FFR of 3.50-3.75% percent. At the January 2026 meeting the Board held rates steady.

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

Land sales in the Inland Empire slowly grew from 2012 up to a peak in 2017, with 2018 and 2019 showing fewer land transactions. Once home sales exploded in May 2020, land sales followed with a significant number of residential land sales to builders in the Inland Empire during the second half of 2020 and throughout 2021. In late 2021 and early 2022, prior to the FFR increases, builders were paying significantly more for residential land that was ready to develop as demand was strong, and supply was shrinking. The beginning of 2022 continued with strong residential land sales until May, when land sales began to fall sharply due to climbing interest rates which was slowing new home sales. _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 44
Land Sales in the Inland Empire bounced back in a positive way in 2024 with 12 residential land sales in the subject area, but 2025 saw a significant decrease in builder land transaction activity with six closings in the same area. Thus far in 2026 there have been two land sale closings in the subject market which would suggest a higher number of sales than in 2025. However, it should be noted that while Lennar was originally intending to purchase all of Legado, they have cancelled their options to purchase Improvement Areas 2 and 3 at this time. The seller has owned the property for a long time and can afford to wait out the bottom of this cycle. It is anticipated that as Improvement Area 1 in Legado builds and sells out, either Lennar or other homebuilders will be interested in purchasing Improvement Area 2 and 3.

On a national scale, according to the National Association for Home Builders (“NAHB”), Builder Confidence in the market for January 2026 was 37, down two points from December but up from 32 in August 2025, one of the lowest ratings since the Great Recession. The NAHB/Wells Fargo Housing Market Index is designed to gauge and track the pulse of the single-family housing market and is based on a monthly survey of builders being asked to rate present sales of new single-family homes, expected sales of homes for the next six months and traffic of prospective buyers. For reference, 2022 averaged a score of 59, 2023 averaged a score of 44, 2024 averaged a score of 45 and 2025 averaged a score of 37. The latest Housing Market Index survey also revealed that 40% of builders reported cutting prices in January and sixty-five percent of builders stated they are using incentives in January, the 10th consecutive month this share has exceeded 60 percent.

New Home Sales and Pricing
We have researched new single-family homes within the subject market in order to reflect residential trends. It should be noted these sales numbers and prices pertain to new home sales while later in this section we discuss existing home sales. In reviewing new home sales in the Inland Empire market area, per the February 22, 2026, Ryness Report, the year-to-date average sales rate (3.0 sales per month) is three percent lower than the same time period of the previous year (3.1 sales per month). There are many reasons impacting the slow sales rates of 2025 and into 2026, but one of the main reasons is that _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 45
the Inland Empire Metro has an affordability issue. According to Zonda, the new home affordability ratio is near its 10-year annual low. A few key factors that contributed to the affordability problem are increased mortgage rates, stagnant job and wage growth, inflation, tariffs, and increased insurance costs.

When comparing the February 22, 2026, Inland Empire Ryness Report to one year prior, there are fifteen additional projects (215 in February 2025 and 230 in February 2026) and sales are about three percent lower year-to-date than the previous year with the current year at 3.0 per month. Looking back, in 2025 the average sales rate per project was 3.0 sales per month, in 2024 the average sales rate per month was 4.1, in 2023 the average sales rate was 4.0, 2022 the average sales rate was 4.3, in 2021 the average sales rate was 4.9 homes per month, and in 2020 the average sales rate was 4.1 homes per month.

Again, the slowdown is due to affordability problems, mortgage rates, stagnant job and wage growth and inflation.

New single-family home pricing (combines both attached and detached) in the Inland Empire has also seen changes. The median new home price in the Inland Empire changed from the peak value of $437,200 in the third quarter of 2006 to $268,155 in early 2009 (during the Great Recession, a decrease of 39 percent) while the current Inland Empire median new home price is $595,000 which is down 4.9 percent from one year ago. In addition to decreasing prices, builders are buying down interest rates which cost the builder at times, upwards of $100,000, however, this amount is not reflected in the recorded sales price. New home sale prices fluctuate based on the land value and competition more than on the cost of building the home. While finishes and sizes of homes can change, the basic costs on a per square foot basis typically do not fluctuate as much as land values; however, there have been inflationary increases in construction costs adding to this increase. Construction materials have increased an estimated 50 percent since 2019. The subject community has needed significant incentives to close homes and keep the absorption rates up. This has resulted in the builder dropping out of escrow on the purchase of the next two improvement areas within Legado.

Within our search for the most comparable actively selling new home communities, we searched the subject’s Ryness submarket of South Riverside which houses Lake _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 46
Elsinore, Wildomar, Menifee, the French Valley and Winchester. The South Riverside submarket has 44 new home communities which have an average sales rate year to date of 3.4 homes per month. This is slightly stronger than the Inland Empire average of 3.0 sales per month. Out of the 44 total new home communities in the South Riverside submarket, Menifee houses 19 of them. KB Home has three neighborhoods which includes two in Nautical Cove. Lennar has six new neighborhoods, including the subject four in the master plan of Legado, one known as Heritage Village and one known as Quartz Trail. Pulte has eight new home communities, three in Banner Park II and five in Cimarron Ridge which includes two Del Webb neighborhoods. Finally, Richmond American owns two neighborhoods, one in Town Center and one at Braverde (nearing sell-out). We are also including a portion of the area just north of Menifee known as Romoland which has one new project currently selling due to its close proximity to the subject property In our analysis we have utilized twelve comparable new home communities including the four subject neighborhoods in Legado, three new home communities in Cimarron Ridge in Menifee, three from Banner Park (also in Menifee), one stand alone project in central Menifee and one in Romoland. The comparable projects have base prices ranging from $517,990 to $916,936. The subject’s most recent base pricing is from $534,990 to $851,990, which falls within the comparables price range.

Existing Homes Sales and Pricing

While the previous section looked at new home sales and pricing, this section refers to existing homes in the Inland Empire. According to the California Association of Realtors’ most recent sales data within overall Southern California, the median price paid for an existing single-family home in January 2026 ($845,530) reflects a decrease of 1.1 percent from the previous month and a slight decrease (0.6 percent) from the previous year ($850,500 in January 2025). Existing home sales in Southern California overall in January 2026 were down 27.8 percent from December 2025 and down 4.4 percent year over year.

The significant decrease month to month in January is probably due to the record- breaking storms which occurred. The overall Southern California numbers compare to Riverside County with $639,440 as the median price paid for an existing home in the County in January 2026, a 0.7 percent increase from the previous month, however a 0.9 percent decrease for year-over-year. Sales within the County are down 26.7 percent month over month and down 0.9 percent year over year, again, the significant decrease _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 47
in month over month probably due to weather. Historically, the new home market captures 10-13 percent of the overall home sales; however, in the past few years due to the limited availability of existing homes, new home sales were capturing closer to 20-30 percent of total home sales. Below is a table showing the sales and prices for the Southern California area by County per the California Association of Realtors.

Southern California Existing Home Sales
County Jan 2026 Dec 2025 Jan 2025
Price MTM
% Change
Price YTY
% Change
Sales YTY
% Change
Los Angeles $879,720 $890,910 $886,400 -1.3% -0.8% -8.5% Orange $1,410,000 $1,390,000 $1,430,000 1.4% -1.4% -3.4% Riverside $639,440 $635,000 $645,000 0.7% -0.9% -9.0%
San Bernardino $500,990 $500,970 $505,000 0.0% -0.8% 25.1% San Diego $1,050,000 $1,000,000 $1,030,000 5.0% 1.9% -7.3% Ventura $917,500 $913,000 $875,000 0.5% 4.9% -2.4%
Southern Calif. $845,530 $855,000 $850,500 -1.1% -0.6% -4.4% Source: California Association of Realtors

Based on January 2026, median existing homes prices, in comparison to the majority of the surrounding counties, Riverside County has a definite price advantage. The “Riverside County Advantage” (price difference between Riverside and surrounding counties) is $240,280 as compared to Los Angeles County, $278,060 as compared to Ventura County, $410,560 as compared to San Diego County and $770,560 as compared to Orange County. That is, in January 2026, the median priced home in Riverside County was $770,560 less (or over 50 percent less) than the median priced home in Orange County ($1,410,000). However, San Bernardino County has a $138,450 price advantage over Riverside County. Typically, as the price advantage widens, homebuyers are more open to commuting to further out areas. With the work-from-home concept, the suburban areas have seen more growth which puts pressure on home prices in the Inland Empire.

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

ZIP Code/Community
Name
Border
To
Subject
Sales of
Homes
Jan
2026
Sales %
Change
from
Jan 2025
Jan 2026
Price
Median
Price %
Change
from Jan
2025
Jan.
2026
PSF
Median
92584 (Menifee proper) South 172 13.2% $615,000 -0.7% $282 92586 (Sun City/N. Menifee) Subject 103 -5.5% $389,000 4.9% $274 92587 (Canyon Lake) West 52 -10.3% $714,500 8.39% $307
92596 (Winchester) East 178 -7.3% $598,105 -1.9% $287
92563 (Murrieta Hot Springs) South 141 -10.2 $675,000 -1.5% $294 92595 (Wildomar) Southwest 47 34.3% $675,000 2.6% $262
92585 (Perris) North 88 8.6% $575,000 0.2% $298
Source: Redfin.com Housing Market Trends January 2026
The median price of a detached resale home in the subject’s ZipCode is $389,000, which is much lower than the surrounding areas as it includes the Sun City area which includes a significant number of mobile home neighborhoods and manufactured housing neighborhoods. The Menifee proper ZipCode with a median price of $615,000 better reflects the subject property. The above price fluctuations from year-to-year relate to the California Association of Realtors overall Riverside County detached home resale price of $639,440 decreasing 0.9 percent year-over-year.

Legado Improvement Area 1 Sales, Pricing and Competition Legado sales began in April 2025 with opening base pricing ranging from $543,990 to $855,990. The current base pricing at Legado ranges from $534,990 to $851,990, with all plans showing slight changes since the grand opening. It should be noted that the net- closed prices within Legado ranged from $450,520 to $800,686, significantly lower than base pricing. The net-closed prices include all upgrades, premiums and options purchased, less all concessions and incentives given by the builder including any mortgage rate buydown and closing cost help. The mortgage rate buy-downs and closing cost help do not show up in the recorded sales price, however it is a cost to the builder.

The four plans within Sonrisa at Legado had original base pricing from $543,990 to $578,990 while current base pricing is $534,990 to $572,990 reflecting slight decreases from $6,000 to $14,000 depending on the plan or decreases of 1.0 to 2.5 percent. Actual net-closed prices within Sonrisa including options, upgrades, and premiums, along with taking all concessions into consideration, ranged from $450,520 to $532,683 with the average net price for the 38 closed homes being $490,111. There are 10 Sonrisa homes in escrow with net pricing ranging from $475,866 to $552,720 with an average net escrow _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 49
price for the 10 homes being $511,272. It should be noted that the net escrow prices are as reported as of the date of value and may change prior to escrow closings as additional options are purchased and/or as additional concessions are given.

The four plans within Tesoro at Legado had original base pricing from $548,990 to $603,990 with current base pricing from $540,990 to $612,990 reflecting slight increases with one plan decreasing. The smallest plan had a decrease of $8,000 (1.4 percent) while the other three plans had increases from $2,000 to $9,000. Actual net-closed prices within Tesoro including options, upgrades, and premiums, along with taking all concessions into consideration, ranged from $464,443 to $575,106 with the average net price for the 28 closed homes being $524,643. There are six Tesoro homes in escrow with net pricing ranging from $498,369 to $565,567 with an average net escrow price for the six homes being $530,618. It should be noted that the net escrow prices are as reported as of the date of value and may change prior to escrow closings as additional options are purchased and/or as additional concessions are given.

The four plans within Armonia at Legado had original base pricing from $579,990 to $625,990 while current base pricing is $580,990 to $626,990 reflecting slight increases of $1,000 to $3,000 depending on the plan or increases of 0.2 to 0.5 percent. Actual net- closed prices within Armonia including options, upgrades, and premiums, along with taking all concessions into consideration, ranged from $500,846 to $603,768 with the average net price for the 32 closed homes being $550,890. There are four Armonia homes in escrow with net pricing ranging from $536,935 to $590,514 with an average net escrow price for the four homes being $556,632. It should be noted that the net escrow prices are as reported as of the date of value and may change prior to escrow closings as additional options are purchased and/or as additional concessions are given.

The four plans within Belleza at Legado had original base pricing from $664,990 to $855,990 while current base pricing is $651,990 to $851,990 reflecting slight decreases from $1,000 to $13,000 or from 0.1 percent to 1.9 percent. Actual net-closed prices within Belleza including options, upgrades, and premiums, along with taking all concessions into consideration, ranged from $545,075 to $800,686 with the average net price for the 29 _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 50
closed homes being $648,270. There are 12 Belleza homes in escrow with net pricing ranging from $605,194 to $804,717 with an average net escrow price for the 12 homes being $708,564. It should be noted that the net escrow prices are as reported as of the date of value and may change prior to escrow closings as additional options are purchased and/or as additional concessions are given.

Within Improvement Area 1 of Legado, Lennar has closed 127 homes to individuals with the first sale date being April 2025, with an additional 32 homes currently in escrow. The total of 159 sales over the past 11 months equates to an overall average absorption rate of 14.45 homes per month between the four communities. When looking at each project, Sonrisa has sold 48 homes, reflecting an average sales rate of 4.4 homes per month; Tesoro has sold 34 homes, reflecting an average sales rate of 3.1 homes per month; Armonia has sold 36 homes, reflecting an average sales rate of 3.3 and Belleza has sold 41 homes, reflecting an average sales rate of 3.7 homes per month. The homes within Tesoro are the single-story line and have sold at the lowest absorption rates. It should be noted that two miles west of the subject in Cimarron Ranch there are two Del Webb communities with all single-story homes in an age qualified community with significant amenities for seniors which may be pulling from the single-story buyers in Legado. The sales rates of the subject homes range from 3.1 to 4.4 sales per month. The average sales rates of the comparable projects range from 1.3 to 4.5 sales per month with the subject sales rates within the comparables’ range. The average for the Inland Empire for year-end 2025 was 3.0 average sales per project per month while thus far in 2026 the average in the Inland Empire has also been 3.0 sales per month. Within the subject sub- market area of South Riverside, the 2025 year-end average sales rate per project per month was 3.1 while thus far in 2026 the average sales per project per month in South Riverside is 3.4, slightly higher than the overall averages within the Inland Empire and slightly higher than the 2025 average in the submarket. All of the subject projects are selling at or above the average for the Inland Empire.

_________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 51
Summary
Riverside County has seen a substantial increase in pricing since 2012 with most areas, including the subject, showing astronomical increases from mid-2020 into 2025, however there have been some small decreases in the past year. While existing home sales were originally down when COVID began in spring/early summer 2020, new home sales subsequently shot up due to the existing home market supply being constrained and interest rates hitting all-time lows. The past three years have seen a slowdown in sales which appeared to be due to limited inventory, high pricing and high interest rates.

However, buyers appear to be resilient to the increases. The subject market area saw a slight increase in pricing while much of Southern California has seen prices decrease over the past year. While sales slowed and prices softened due to uncertainty in the economy over the past year, mortgage rates have been decreasing, which should help the new home market. Despite uncertainty hitting the housing market due to the uncertainty in the national administration, interest rates and inflation, most observers agree that the Inland Empire housing market is healthy, and population growth is still estimated to occur in the area. It is believed that as the population continues to increase, housing growth will also continue.

HIGHEST AND BEST USE ANALYSIS

The highest and best use is a basic concept in real estate valuation due to the fact that it represents the underlying premise (i.e., land use) upon which the estimate of value is based. In this report, the highest and best use is defined as:
"the reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value”4

Proper application of this analysis requires the subject properties to first be considered “As If Vacant” in order to identify the “ideal” improvements in terms of use, size and timing of development. The existing improvements (if any) are then compared to the “ideal” improvements to determine if the use should be continued, altered or demolished preparatory to redevelopment of the site with a more productive or ideal use.

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

Physically Possible Uses
The subject property consists of an estimated 148.99 gross acres in an irregular- shaped parcel at the southwest corner of Rouse Road and Antelope Road in Menifee. The site has access from I-215 via McCall Boulevard to Encanto Road to Rouse Road. The site was generally level at surrounding street grade. The property has been graded and developed into 491 generally level, finished lots with internal streets in and utilities stubbed to each lot. The property is surrounded by two hilly, undeveloped parcels to the north east along with Shadow Mountain, an existing residential master plan. To the south is the undeveloped portion of Legado known as Improvement Area 2 and Improvement

4 The Appraisal of Real Estate, 11th Edition
_________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 53
Area 3 beyond which is an undeveloped parcel, an existing residential neighborhood, a middle school, a mobile home park and a skilled nursing facility. To the west is the undeveloped commercial zoned parcel within Legado beyond which is Encanto Road (a frontage road along I-215), then I-215 beyond which is existing housing in the area known as Sun City. North of the subject is Rouse Road beyond which is existing housing. We have reviewed a geotechnical report which concluded that development of the site as proposed was feasible. We have not received a Phase I Environmental Assessment for our review. It is an assumption of this report that the soils are adequate to support the highest and best use conclusion and that there are no environmental issues which would slow or thwart development of the site. This is evidenced by City approvals along with City inspectors on site during construction. There are water quality/detention basins within the subject property to allow drainage into an engineered water system which appears to have been designed to alleviate any potential flooding problems and to control project water runoff. All standard utilities serve the subject property. There is neighborhood shopping and major shopping centers within two miles of the subject site.

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

Legality of Use
The subject property is located within the City of Menifee, the entity responsible for land use and zoning regulation. Per the City’s Land Use Map, the subject site is designated as within the Legado Specific Plan. Per the Specific Plan, the subject lands are referred to as Planning Areas 1, 2, 3 and 4, along with Planning Areas 8, 9 and 10 which allow for up to 500 single-family detached homes with an overall density of at most, 4.9 dwelling units per acre. In addition, recorded Tract Map Nos. 37408-1, 37408-2, 37408-3, a portion of 37408-4, 37409-1, 37409-2 and 37409-3 subdivide the subject 148.99 estimated gross acres into 491 single-family lots with sizes ranging from 5,000 square feet to upwards of 7,000 square feet. This equates to a density of 3.3 dwelling units per acre. The approved mapping is consistent with the current Specific Plan entitlements on the property. There is a limitation on the number of certificates of occupancy which can be issued prior to the _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 54
builder completing the neighborhood parks, however the builder does not anticipate any issues due to these conditions. It is an extraordinary assumption of this report that this limitation does not slow or thwart construction or sales of the homes as discussed under the property description section. Based on the legality of use analysis, the type of development for which the subject properties can be utilized is narrowed to residential use. This is consistent with the findings of the physically possible uses.

Feasibility of Development
The third and fourth considerations in the highest and best use analysis are economic in nature, i.e., the use that can be expected to be most profitable. As discussed under the Riverside County Housing Market section earlier within this report, the market had shown strong increases in both sales and pricing since COVID. There was a slowdown in sales in late 2022 when high home prices and increasing interest rates began to slow sales.

Overall home sales have slowed down significantly, partially due to existing homeowners not moving due to the higher interest rates, which stifled the existing home market, at times leaving new homes the only option for homebuyers. Interest rates have dropped by around 50 basis points in the past four months and appear to have stabilized in the 6.0 percent range which is bringing new home buyers back into the marketplace.

Within Menifee CFD No. 2022-3 IA 1, out of 491 proposed houses, there have been 159 home sales to date. All structures appear to be in excellent condition with no physical depreciation apparent. Within the new home market in Menifee and the surrounding area, we found eight additional projects to be comparable to the four subject communities within Legado. Homebuilding had not been able to keep up with the demand during COVID with low interest rates, millennials joining the home buying market and the work from home factor all adding to the demand. As interest rates increased, the market softened, however the limited supply of existing homes on the market increased the capture of new homes in the overall real estate market. The Menifee housing market is priced slightly higher when compared to the nearby areas of Perris and Lake Elsinore, however lower than Murrieta and Temecula (adjoining north San Diego County). Population growth is still occurring in the area and will continue to create the need for housing. Our search of the Menifee and immediately surrounding area for comparable land sales resulted in six land sales in the subject marketplace in the past 14 months, including neighboring Winchester _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 55
and Perris. It should be noted that Lennar, the buyer for Improvement Area No. 1 in Legado recently cancelled their escrow/option agreement to purchase Improvement Areas 2 and 3. This is due to the uncertainty in today’s consumer confidence. As Improvement Area No. 1 is built and sold out, it is thought that either Lennar or another homebuilder will purchase the remainder of the Legado Specific Plan.

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

Maximum Productivity
Based on the market activity of residential lands in the immediate area, we have concluded there is a need/demand for residential lands.

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

Highest and Best Use – “As Improved”
The subject property consists of Improvement Area 1 of the community known as Legado which has four neighborhoods known as Sonrisa, Tesoro, Armonia and Belleza, all being built, marketed, and sold by Lennar. Legado began sales in April 2025, suggesting a total combined rate over the four projects of 14.45 sales per month with each project’s sales ranging from 3.1 to 4.4 sales per month. This is generally higher than both the Inland Empire average and the subject’s South Riverside submarket’s average. There are 44 actively marketing new home communities in the subject’s South Riverside submarket (19 of those within Menifee) that have a year-to-date average absorption rate of about 3.4 sales per month (according to the Ryness Report dated February 22, 2026). Within the subject Tesoro has a sales rate lower than the submarket’s average while the other three have sales rates similar or higher than the average. It should be noted that substantial incentives and concessions are being offered which appear to keep Legado’s sales rates _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 56
up. It appears that Legado homes are selling at or near the correct price points for the area when considering the sales incentives and concessions. Our search within the subject area found eight additional projects considered to be comparable with similar sized homes in the Menifee market area. The absorption or sales rates within the comparable projects used in our analysis range from 1.3 to 4.5 sales per month.

Base pricing within the four neighborhoods within Legado have all had minimal base price adjustments from grand opening pricing (April 2025) and today’s pricing, ranging from a reduction of $14,000 to an increase of $9,000. These changes range from a decrease of

2.5 percent to an increase of 1.4 percent. Incentives within Legado have averaged a little over $75,000 per home. This is typical for public builders in the Inland Empire as they attempted to keep their absorption rates up as mortgage rates increased between mid- 2022 and late 2025. As interest rates have been declining for the past few months, you would expect incentives to get reduced; however, we have not seen this in Legado at this time.

The sales rates within the subject and the competitive projects in the immediate area suggest there is demand for the subject homes in the current market at the right price points. All of the homes are of good design and appear to be of good quality workmanship. In addition, there are a significant number of homes in escrow. Based on Legado’s sales rates, current demand and the condition of the homes, it is our conclusion that the highest and best use for the subject property is for the continued use of new homes for sale, as improved.

VALUATION ANALYSIS AND CONCLUSIONS

The Sales Comparison Approach will be used to value the subject property. This approach compares similar properties that have recently sold or are in escrow. In determining the value for the property, a unit of comparison needs to be addressed. For single-family detached lots, the lots are typically sold on a finished lot basis. That is, the sales price is determined by a finished lot value and then the remaining costs to develop the property to a finished lot condition are considered in the sales price. Therefore, in determining a current market value for the residential lands, the current condition of the lots will be considered. In the case of the existing home valuations, a single home sale is the unit of comparison. In determining the value for each existing house, a base value will be concluded for each plan which will be considered a minimum market value as most buyers typically purchase some premiums, upgrades or options which increase the price of the home. In addition, the incentives and/or concessions, including mortgage rate buy- downs and help with closing costs will be considered in the analysis as they are an additional cost to the homebuilder.

The valuation will be presented as follows. First, a discussion of the single-family detached lot market data will be given. Each of the comparable market data (on a finished lot basis) will be detailed along with a comparison discussion of their relationship to the subject property. The remaining construction costs and development fees for the subject site will be taken into consideration. This analysis will be followed by a finished lot value conclusion for the subject property. Houses which are under construction (under 95 percent complete) will be valued on the basis of a finished lot rather than attribute value to a partially complete improvement.

In the case of the completed (over 95 percent complete) builder-owned models and production units, the homes will be valued using a DCF due to the “bulk” or single ownership of the homes. The DCF will consider the fair market value of the completed homes (utilizing the Sales Comparison Approach), any remaining land development costs and fees, the marketing and carrying costs associated with selling off the homes, a profit due to the developer of the homes, and a discount rate reflecting both the risk associated _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 58
with selling off the homes along with the time value of money during the estimated absorption period.

In the case of the individually owned homes, a concluded base value will be used for each plan and a mass appraisal technique will be addressed. In determining the concluded base value, new home sales in the area will be reviewed and compared with sales of the subject completed homes using standard methodology and statistical testing. In addition, resales, if any, will be taken into consideration. All of the value conclusions will take into consideration improvements funded by the Menifee CFD No. 2022-3 IA 1 Special Tax Bonds and their lien. A summary of the final value conclusions will be reported at the end of this valuation section.

Market Data Discussion – Detached Residential Lots

Legado consists of 127 individually owned homes, eight model homes, 30 production homes over 95 complete (21 in escrow), 77 homes under construction (under 95 percent complete, 11 in escrow) and 249 remaining lots which are generally in a finished condition. The lots have a minimum size of 5,000 square feet, 5,500 square feet, 6,000 square feet and 7,000 square feet depending on the tract. We will utilize a blended price for the lots which generally range from 5,000 to 7,500 square feet. The homes under construction (under 95 percent complete) will be valued on the basis of a finished lot rather than attribute value to a partially completed improvement, therefore, we will value 326 lots (249 lots plus 77 lots with homes under construction that are under 95 percent complete) in this section. Lennar currently owns 36 of the lots and KL LB owns 290 of the lots. We have searched the area and found the six land transactions summarized in the Addenda. A discussion of each transaction in relation to the subject site is below.

Land Sale No. 1 refers to the most recent land closing in the immediate area. KB Home took down the final phase they purchased in a community known as Canterwood which consisted of 94 lots with a lot size of 5,500 square feet on February 6, 2026. D.R. Horton purchased the first phase within Canterwood back in 2022 based on an estimated finished lot of $175,000, significantly below market value due to the location and amount of infrastructure needed in the immediate area. The site is located about five miles southeast _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 59
of the subject. D.R. Horton began selling homes in Canterwood in late 2023 which brought people to the neighborhood. KB Home purchased what is known as Canterwood Phase 2 and Phase 3 in two takedowns with the first encompassing 53 lots and closing in June 2024 based on a finished lot price of $227,500. The second take-down which this land sale refers to was also based on the finished lot price of $227,500, however KB did renegotiate due to cost increases since 2024 which decreased the per lot price about $10,000 per lot with the finished lot price remaining the same. KB Home is now selling their Hudson and Willow Pointe neighborhoods with base pricing from $565,990 to $674,990. The property will have an overall tax rate in the 2 percent range, similar to the subject property. In comparison to the subject property this transaction is considered to be inferior due to the date of negotiation on the price back in 2024 however the market, which appeared stronger just a few months ago is softening once again. In addition, these lots are minimum 5,500 square feet which is considered slightly inferior to the subject lots which range from 5,000 to 7,000 minimum lot size.

Land Sale No. 2 refers to the final takedown of lots within the Nautical Cove neighborhood, about four miles southeast of the subject along Briggs Road at Holland Road. KB Home negotiated the transaction for a total of 243 lots with closings in three takedowns, the first in July 2024 for 120 lots, the second in August 2025 for 61 lots and this final purchase of 52 lots in January 2026. The finished lot price for the 6,000 square foot lots was negotiated back in 2024. The original takedown was at $253,000 per finished lot in July 2024, however when the second takedown occurred, it was renegotiated to $250,000 per finished lot for the second and third takedowns. The site is adjacent to an elementary school, making it a coveted location. KB Home is now selling their Amelia and Gatsby neighborhoods with base pricing from $584,990 to $741,990. The property will have an overall tax rate in the 2 percent range, similar to the subject property. In comparison to the subject property, this location is surrounded by recently closed homes and closer to the new shopping areas of Menifee which are where Newport Road and Scott Road intersect I-215. These facts make its location superior to the subject site.

While the original price was negotiated in 2024, the latest price was negotiated in August 2025.

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Land Sale No. 3 refers to the September 2025 closing of a large 150+ acre site just north of Canterwood, about five miles southeast of the subject property at the northeast corner of Leon and Holland Roads in unincorporated Riverside County in the area known as Winchester. The property was in an unimproved condition with major infrastructure needed and approved final mapping in place. KB Home purchased the entire site mapped for 510 lots which range from 4,000 to 6,000 square feet for $7,000,000 or $13,725 per lot, however due to the significant improvements needed, the finished lot was estimated at $240,000. The site is adjacent to Canterwood with homes currently selling by D.R.

Horton and KB Home. The property will have an overall tax rate in the 2 percent range, similar to the subject property. In comparison to the subject property this transaction is considered to be inferior due to the risk associated with the development and the lot size.

That is, while the estimated costs to finish the lots are taken into account, there is risk due to the significant off-site infrastructure which needs to be completed. In addition, the lots range in size from 4,000 to 6,000 square feet in size while the subject lots range from 5,000 to 7,000 square feet. Finally, this transaction is also considered slightly inferior due to the number of lots. Most builders expect a “bulk value” or a discount if there are more than 350 lots due to the time value of money during the absorption period.

Land Sale No. 4 refers to the Meritage Homes purchase of 310 lots located at the southwest corner of Briggs Road and Simpson Road about three miles southeast of the subject property. The site is mapped for 310 lots with cluster lots, 4,500 square foot lots and 5,000 square foot lots. Meritage purchased the site in May 2025 for $15,000,000 or $48,387 per lot based on a finished lot estimate of $228,000 assuming a similar overall tax rate. The property is just south of the master planned community of Heritage Lake in the northern portion of Menifee which is now built out. In comparison to the subject property this transaction is considered to be inferior due to lot size. The subject has 5,000 to 7,000 square foot lots, while these range from cluster (typically around 3,000 square feet) to 5,000 square feet.

Land Sale No. 5 refers to the May 2025 purchase of 96 mapped lots located northwest of Rouse Road and Byers Road in Menifee, about 1.5 miles west of the subject site.

Richmond American Homes purchased the 96 mapped lots for $10,055,000 or $104,740 _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 61
per lot based on a finished lot price of $260,000 assuming a similar CFD on the site. The lots closed with an approved final map in an unimproved condition. The site is adjacent to Pulte’s successful Cimarron Ridge, a currently selling master planned community with some age-qualified product. The lots have a minimum lot size of 7,200 square feet which is considered slightly superior to the subject’s 5,000 to 7,000 square foot lots.

Land Sale No. 6 pertains to the KB Homes purchase of 184 lots in December 2024, located south of Nuevo Road at Evans Road in Perris, about five miles north of the subject site. The property was in a blue-topped condition with an approved final map at time of sale. KB Home purchased the lots for $34,478,042 or $187,381 per lot based on a finished lot estimate of $257,500 per lot. The 184 lots have a minimum lot size of 5,000 square feet. KB Home is now selling their Lennox at Park West community with homes from $530,000 to $645,000. In comparison to the subject property, these lots are considered to be slightly inferior in lot size and slightly inferior in location as Perris is further out for commuters from San Diego and Orange Counties.

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

Data
No.

Location
Date of
Sale Lot Size Finished
Lot Price Comparison to Subject
1 Winchester 2 / 26 5,500 $227,500
Inferior – Date of Negotiation
Slightly Inferior – Location & Lot
Size
2 Menifee 1 / 26 6,000 $250,000 Inferior – Date of Negotiation 3 Winchester 9 / 25 4,000 –
6,000 $240,000 Inferior – Condition, Lot Size,
Location and Number of Lots
4 Menifee 5 / 25 Cluster –
5,000 $228,000 Inferior – Lot Size, Location
5 Menifee 5 / 25 7,200 $260,000 Inferior - Location
Superior – Lot Size
6 Perris 12 / 24 5,000 $257,500

Inferior – Location & Lot Size

The market data has an overall finished lot range from $227,500 to $260,000. Data No. 1, at the lowest end of the range, is located in Winchester, in a location that is considered to be slightly inferior due to it being further out for shopping in a less developed area.

Data No. 3 is adjacent to Data No. 1 (to the north) and sold for $240,000, partly due to _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 62
additional development in the area. It should be noted that Data No. 3 also has smaller lots when compared to the subject and was considered a bulk sale as KB purchased 510 lots in one purchase. Data No. 5, located about 2 miles west of the subject property is the most comparable transaction when compared to the subject property, however the lots are slightly superior in size. It should be noted that some builders have recently backed out of escrows and/or options and others have renegotiated the most recent takedowns to a lessor purchase price. The subject lots are generally in a physically finished condition with no remaining development risk. The above market data is considered to be good and plentiful. We have concluded that the subject lots have a current market value of $240,000 as a blended price for the subject 5,000 to 7,000 square foot lots. As discussed under the Property Description Section, there are remaining costs associated with developing the subject property into true finished lots. These costs are estimated at $82,184.55 per lot. The value conclusion for the lots within Legado is calculated below:

Lennar-Owned Lots –
36 Lots x $240,000 $ 8,640,000
Less: Remaining Costs ($82,184.55 x 36) ( 2,958,643) Current Value for Lennar Lots $ 5,681,357

KL LB-Owned Lots –
290 Lots x $240,000 $ 69,600,000
Less: Remaining Costs ($82,184.55 x 290) (23,833,520) Current Value for KL LB Lots $ 45,766,480

Retail House Valuations

Due to the single ownership of multiple houses by Lennar, including model homes and production homes over 95 percent complete, a Discounted Cash Flow (“DCF”) analysis is needed in order to arrive at a bulk sale value for each ownership. First, a retail value for each plan will be concluded followed by a DCF for the builder-owned lots, which will consider the absorption time to sell off the houses, the costs associated with selling off the homes and any remaining costs owed by the builder. The resulting revenue will be discounted using an appropriate rate to determine the builder-owned bulk value. The DCF analyses will be followed by a reporting of the concluded values for the individually owned homes using the concluded base retail value for each plan with a separate check of the analysis utilizing a mass appraisal technique based on actual sales prices of the homes and considering any re-sale market data.
_________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 63

Legado Improvement Area 1 consists of 127 individually owned homes, eight model homes, 30 homes over 95 percent complete (21 in escrow), 77 houses under construction owned by Lennar and KL LB (11 in escrow), and 249 additional finished lots owned by KL LB. The homes under construction and the lots have been valued above. The 38 builder-owned homes over 95 percent complete (including eight model homes) are addressed in this section with a separate valuation for each plan.

Below is a summary of the floor plans within Sonrisa, Tesoro, Armonia and Belleza at Legado. A listing of the improved residential comparable properties is located in the Addenda of this report. All of the improved residential properties are located within the subject area of Menifee or nearby in the Romoland area. Our search of the subject property and the local Multiple Listing Service (MLS) has resulted in no closed resales and no current resale listings within Legado. The plans are detailed below.

*One of each of these plans is a model home. There are an additional 77 homes under construction, and 249 additional finished lots.

Plan

Bd/Ba
Floors/
Parking

Sq. Ft.

Ind.

Owned
Homes
Bldr.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 1 3 / 2 1 / 2 1,539 --
1 2 3 / 2.5 2 / 2 1,696 $315.44
2 1 3 / 2 1 / 2 1,539 $351.52
2 2 3 / 2 1 / 2 1,936 $300.61
3 1 3 / 2 1 / 2 1,936 $300.10
5 2 5 / 3 1 / 2 2,118 $278.09
7 1 2 / 2 1 / 2 1,579 $328.05
9 1 3 / 2 1 / 2 2,191 $285.25
11 3 4 / 2 1 / 2 2,084 $283.39

All new home comparables are located within Menifee or Romoland. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, master plan amenities, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $278.09 to $351.52 per square foot with the smallest sized home at the high-end of the price per square foot range and the larger sized homes at the low-end of the price per square foot range. This is typical due to the economies of scale which are obtained during construction. Sonrisa Plan 1 has a current base asking price of $349.57 per square foot. There have been nine closings of Plan 1 with net sales prices ranging from $292.74 to $324.27 per square foot. It should be noted that the reported sales prices include upgrades, premiums, and options along with any concessions given by the builder while the concluded value relates to a base price for the plan, less concessions including interest rate buydowns. The average incentive/concession given by the builder within Sonrisa was $75,427 or $49.01 per square foot on Plan 1. There are currently three Plan 1 escrows with a price range of $322.65 to $334.68 per square foot, however all options and concessions may not be included in the escrow prices as negotiations may be ongoing. All of the homes appear to be in excellent condition with no depreciation visible. It has been concluded that Sonrisa Plan 1 has a base current market value of $315.00 per square foot. This calculates as follows:

1,539 sf x $315.00 = $484,785

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 2 3 / 2.5 2 / 2 1,696 --
1 1 3 / 2 1 / 2 1,539 $349.57
1 3 3 / 2.5 2 / 2 1,862 $299.14
1 4 4 / 3 2 / 2 2,069 $276.94
2 1 3 / 2 1 / 2 1,539 $351.52
3 1 3 / 2 1 / 2 1,936 $300.10
3 2 4 / 3 2 / 2 2,200 $270.45

The average incentive/concession given by the builder within Sonrisa was $75,427 or $44.47 per square foot on Plan 2. There are currently three Plan 2 escrows with a price range of $280.58 to $296.86 per square foot, however all options and concessions may not be included in the escrow prices as negotiations may be ongoing. All of the homes appear to be in excellent condition with no depreciation visible. It has been concluded that Sonrisa Plan 2 has a base current market value of $280.00 per square foot. This calculates as follows:
1,696 sf x $280.00 = $474,880

The most appropriate new home comparable data for Sonrisa Plan 3 is shown below.

_________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 66
Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 3 3 / 2.5 2 / 2 1,862 --
1 1 3 / 2 1 / 2 1,539 $349.57
1 2 3 / 2.5 2 / 2 1,696 $315.44
1 4 4 / 3 2 / 2 2,069 $276.94
2 1 3 / 2 1 / 2 1,539 $351.52
3 1 3 / 2 1 / 2 1,936 $300.10
3 2 4 / 3 2 / 2 2,200 $270.45
3 3 4 / 3 2 / 2 2,468 $250.81
4 1 4 / 3 2 / 2 2,662 $244.92

The average incentive/concession given by the builder within Sonrisa was $75,427 or $40.51 per square foot on Plan 3. There is currently one Plan 3 escrow with a price of $268.65 per square foot, however all options and concessions may not be included in the escrow prices as negotiations may be ongoing. All of the homes appear to be in excellent condition with no depreciation visible. It has been concluded that Sonrisa Plan 3 has a base current market value of $263.00 per square foot. This calculates as follows:

1,862 sf x $263.00 = $489,706

The most appropriate new home comparable data for Sonrisa Plan 4 is shown below.

_________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 67
Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 4 4 / 3 2 / 2 2,069 --
1 2 3 / 2.5 2 / 2 1,696 $315.44
1 3 3 / 2.5 2 / 2 1,862 $299.14
2 3 4 / 2 1 / 2 2,084 $284.54
3 1 3 / 2 1 / 2 1,936 $300.10
3 2 4 / 3 2 / 2 2,200 $270.45
3 3 4 / 3 2 / 2 2,468 $250.81
4 1 4 / 3 2 / 2 2,662 $244.92

The average incentive/concession given by the builder within Sonrisa was $75,427 or $36.46 per square foot on Plan 4. There are currently three Plan 4 escrows with a price range of $247.65 to $267.14 per square foot, however all options and concessions may not be included in the escrow prices as negotiations may be ongoing. All of the homes appear to be in excellent condition with no depreciation visible. It has been concluded that Sonrisa Plan 3 has a base current market value of $245.00 per square foot. This calculates as follows:
2,069 sf x $245.00 = $506,905

Tesoro Plan 1 is identical to Sonrisa Plan 1. We have used the same analysis for the valuation. The most appropriate new home comparable data for Tesoro Plan 1 is shown below.

_________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 68
Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 1 3 / 2 1 / 2 1,539 --
1 1 3 / 2 1 / 2 1,539 $349.57
1 2 3 / 2.5 2 / 2 1,696 $315.44
2 2 3 / 2 1 / 2 1,936 $300.61
3 1 3 / 2 1 / 2 1,936 $300.10
5 2 5 / 3 1 / 2 2,118 $278.09
7 1 2 / 2 1 / 2 1,579 $328.05
9 1 3 / 2 1 / 2 2,191 $285.25
11 3 4 / 2 1 / 2 2,084 $283.39

All new home comparables are located within Menifee or Romoland. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, master plan amenities, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $278.09 to $349.57 per square foot with the smallest sized home at the high-end of the price per square foot range and the larger sized homes at the low-end of the price per square foot range. This is typical due to the economies of scale which are obtained during construction. Tesoro Plan 1 has a current base asking price of $351.52 per square foot. There have been eight closings of Plan 1 with net sales prices ranging from $301.78 to $329.92 per square foot. It should be noted that the reported sales prices include upgrades, premiums, and options along with any concessions given by the builder while the concluded value relates to a base price for the plan, less concessions including interest rate buydowns. The average incentive/concession given by the builder within Tesoro was $75,988 or $49.37 per square foot on Plan 1. There are currently two Plan 1 escrows with a price range of $323.83 to $327.37 per square foot, however all options and concessions may not be included in the escrow prices as negotiations may be ongoing. All of the homes appear to be in excellent condition with no depreciation visible. It has been concluded that Tesoro Plan 1 has a base current market value of $315.00 per square foot. This calculates as follows:

1,539 sf x $315.00 = $484,785

The most appropriate new home comparable data for Tesoro Plan 2 is shown below. _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 69

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 2 3 / 2 1 / 2 1,936 --
1 1 3 / 2 1 / 2 1,539 $349.57
1 2 3 / 2.5 2 / 2 1,696 $315.44
2 1 3 / 2 1 / 2 1,539 $351.52
2 3 4 / 2 1 / 2 2,084 $284.54
2 4 4 / 2 1 / 2 2,231 $274.76
3 1 3 / 2 1 / 2 1,936 $300.10
5 2 5 / 3 1 / 2 2,118 $278.09
7 1 2 / 2 1 / 2 1,579 $328.05
9 1 3 / 2 1 / 2 2,191 $285.25
11 3 4 / 2 1 / 2 2,084 $283.39

All new home comparables are located within Menifee or Romoland. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, master plan amenities, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $274.76 to $351.52 per square foot with the smallest sized home at the high-end of the price per square foot range and the larger sized homes at the low-end of the price per square foot range. This is typical due to the economies of scale which are obtained during construction. Tesoro Plan 2 has a current base asking price of $300.61 per square foot. There have been seven closings of Plan 2 with net sales prices ranging from $259.78 to $289.90 per square foot. It should be noted that the reported sales prices include upgrades, premiums, and options along with any concessions given by the builder while the concluded value relates to a base price for the plan, less concessions including interest rate buydowns. The average incentive/concession given by the builder within Tesoro was $75,988 or $39.25 per square foot on Plan 2. There is currently one Plan 2 escrow with a price of $263.65 per square foot, however all options and concessions may not be included in the escrow prices as negotiations may be ongoing.

All of the homes appear to be in excellent condition with no depreciation visible. It has been concluded that Tesoro Plan 2 has a base current market value of $262.00 per square foot.

This calculates as follows:
1,936 sf x $262.00 = $507,232
_________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 70

The most appropriate new home comparable data for Tesoro Plan 3 is shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 3 4 / 2 1 / 2 2,084 --
1 2 3 / 2.5 2 / 2 1,696 $315.44
2 4 4 / 2 1 / 2 2,231 $274.76
3 1 3 / 2 1 / 2 1,936 $300.10
5 2 5 / 3 1 / 2 2,118 $278.09
5 3 5 / 3 1 / 2 2,277 $267.09
6 1 5 / 3 1 / 2 2,641 $248.77
8 1 2 / 2 1 / 2 2,056 $271.40
9 1 3 / 2 1 / 2 2,191 $285.25
11 3 4 / 2 1 / 2 2,084 $283.39

All new home comparables are located within Menifee or Romoland. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, master plan amenities, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $248.77 to $315.44 per square foot with the smallest sized home at the high-end of the price per square foot range and the larger sized homes at the low-end of the price per square foot range. This is typical due to the economies of scale which are obtained during construction. Tesoro Plan 3 has a current base asking price of $284.54 per square foot. There have been six closings of Plan 3 with net sales prices ranging from $233.72 to $270.81 per square foot. It should be noted that the reported sales prices include upgrades, premiums, and options along with any concessions given by the builder while the concluded value relates to a base price for the plan, less concessions including interest rate buydowns. The average incentive/concession given by the builder within Tesoro was $75,988 or $36.46 per square foot on Plan 3. There are currently two Plan 3 escrows with a price range of $261.61 to $268.87 per square foot, however all options and concessions may not be included in the escrow prices as negotiations may be ongoing. All of the homes appear to be in excellent condition with no depreciation visible. It has been concluded that Tesoro Plan 3 has a base current market value of $245.00 per square foot. This calculates as follows:
2,084 sf x $245.00 = $510,580

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 4 4 / 2 1 / 2 2,231 --
1 4 4 / 3 2 / 2 2,069 $276.94
2 2 3 / 2 1 / 2 1,936 $300.61
2 3 4 / 2 1 / 2 2,084 $284.54
3 1 3 / 2 1 / 2 1,936 $300.10
5 2 5 / 3 1 / 2 2,118 $278.09
5 3 5 / 3 1 / 2 2,277 $267.09
6 1 5 / 3 1 / 2 2,641 $248.77
8 1 2 / 2 1 / 2 2,056 $271.40
9 1 3 / 2 1 / 2 2,191 $285.25
11 3 4 / 2 1 / 2 2,084 $283.39

All new home comparables are located within Menifee or Romoland. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, master plan amenities, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $248.77 to $300.61 per square foot with the smallest sized home at the high-end of the price per square foot range and the larger sized homes at the low-end of the price per square foot range. This is typical due to the economies of scale which are obtained during construction. Tesoro Plan 4 has a current base asking price of $274.76 per square foot. There have been seven closings of Plan 4 with net sales prices ranging from $240.30 to $257.78 per square foot. It should be noted that the reported sales prices include upgrades, premiums, and options along with any concessions given by the builder while the concluded value relates to a base price for the plan, less concessions including interest rate buydowns. The average incentive/concession given by the builder within Tesoro was $75,988 or $34.06 per square foot on Plan 4. There is currently one Plan 4 escrows with a price of $253.50 per square foot, however all options and concessions may not be included in the escrow prices as negotiations may be ongoing.

All of the homes appear to be in excellent condition with no depreciation visible. It has been concluded that Tesoro Plan 4 has a base current market value of $242.00 per square foot.

This calculates as follows:
2,231 sf x $242.00 = $539,902
_________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 72

Armonia Plan 1 is identical to Tesoro Plan 2 We have used the same analysis for the valuation. The most appropriate new home comparable data for Armonia Plan 1 is shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 1 3 / 2 1 / 2 1,936 --
1 1 3 / 2 1 / 2 1,539 $349.57
1 2 3 / 2.5 2 / 2 1,696 $315.44
2 1 3 / 2 1 / 2 1,539 $351.52
2 2 3 / 2 1 / 2 1,936 $300.61
2 3 4 / 2 1 / 2 2,084 $284.54
2 4 4 / 2 1 / 2 2,231 $274.76
3 1 3 / 2 1 / 2 1,936 $300.10
5 2 5 / 3 1 / 2 2,118 $278.09
7 1 2 / 2 1 / 2 1,579 $328.05
9 1 3 / 2 1 / 2 2,191 $285.25
11 3 4 / 2 1 / 2 2,084 $283.39

All new home comparables are located within Menifee or Romoland. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, master plan amenities, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $274.76 to $349.57 per square foot with the smallest sized home at the high-end of the price per square foot range and the larger sized homes at the low-end of the price per square foot range. This is typical due to the economies of scale which are obtained during construction. Armonia Plan 1 has a current base asking price of $300.10 per square foot. There have been nine closings of Plan 1 with net sales prices ranging from $258.70 to $280.35 per square foot. It should be noted that the reported sales prices include upgrades, premiums, and options along with any concessions given by the builder while the concluded value relates to a base price for the plan, less concessions including interest rate buydowns. The average incentive/concession given by the builder within Armonia was $74,962 or $38.72 per square foot on Plan 1. There is currently one Plan 1 escrow with a price of $277.34 per square foot, however all options and concessions may not be included in the escrow prices as negotiations may be ongoing.

All of the homes appear to be in excellent condition with no depreciation visible. It has been concluded that Armonia Plan 1 has a base current market value of $262.00 per square foot. _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 73
This calculates as follows:
1,936 sf x $262.00 = $507,232

The most appropriate new home comparable data for Armonia Plan 2 is shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 2 4 / 3 2 / 2 2,200 --
1 2 3 / 2.5 2 / 2 1,696 $315.44
1 3 3 / 2.5 2 / 2 1,862 $299.14
1 4 4 / 3 2 / 2 2,069 $276.94
2 3 4 / 2 1 / 2 2,084 $284.54
3 3 4 / 3 2 / 2 2,468 $250.81
3 4 4 / 3 2 / 2 2,589 $242.17
4 1 4 / 3 2 / 2 2,662 $244.92
10 1 4 / 2.5 2 / 2 2,391 $262.23

All new home comparables are located within Menifee. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, master plan amenities, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $242.17 to $315.44 per square foot with the smallest sized homes at the high-end of the price per square foot range and the larger sized homes at the low-end of the price per square foot range. This is typical due to the economies of scale which are obtained during construction. Armonia Plan 2 has a current base asking price of $270.45 per square foot. There have been seven closings of Plan 2 with net sales prices ranging from $235.47 to $247.96 per square foot. It should be noted that the reported sales prices include upgrades, premiums, and options along with any concessions given by the builder while the concluded value relates to a base price for the plan, less concessions including interest rate buydowns. The average incentive/concession given by the builder within Armonia was $74,962 or $34.07 per square foot on Plan 2. There is currently one Plan 2 escrow with a price of $241.84 per square foot, however all options and concessions may not be included in the escrow prices as negotiations may be ongoing. All of the homes appear to be in excellent condition with no depreciation visible. It has been concluded that Armonia Plan 2 has a base current market value of $240.00 per square foot. This calculates as follows:

The most appropriate new home comparable data for Armonia Plan 3 is shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 3 4 / 3 2 / 2 2,468 --
1 3 3 / 2.5 2 / 2 1,862 $299.14
1 4 4 / 3 2 / 2 2,069 $276.94
2 3 4 / 2 1 / 2 2,084 $284.54
3 2 4 / 3 2 / 2 2,200 $270.45
3 4 4 / 3 2 / 2 2,589 $242.17
4 1 4 / 3 2 / 2 2,662 $244.92
10 1 4 / 2.5 2 / 2 2,391 $262.23
10 2 4 / 2.5 2 / 2 2,654 $244.91

All new home comparables are located within Menifee. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, master plan amenities, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $242.17 to $299.14 per square foot with the smallest sized homes at the high-end of the price per square foot range and the larger sized homes at the low-end of the price per square foot range. This is typical due to the economies of scale which are obtained during construction. Armonia Plan 3 has a current base asking price of $250.81 per square foot. There have been eight closings of Plan 3 with net sales prices ranging from $221.13 to $239.28 per square foot. It should be noted that the reported sales prices include upgrades, premiums, and options along with any concessions given by the builder while the concluded value relates to a base price for the plan, less concessions including interest rate buydowns. The average incentive/concession given by the builder within Armonia was $74,962 or $30.37 per square foot on Plan 3. There are currently two Plan 3 escrows with a price range of $229.76 to 239.27 per square foot, however all options and concessions may not be included in the escrow prices as negotiations may be ongoing. All of the homes appear to be in excellent condition with no depreciation visible. It has been concluded that Armonia Plan 3 has a base current market value of $228.00 per square foot. This calculates as follows:
2,468 sf x $228.00 = $562,704

The most appropriate new home comparable data for Armonia Plan 4 is shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 4 4 / 3 2 / 2 2,589 --
1 4 4 / 3 2 / 2 2,069 $276.94
2 3 4 / 2 1 / 2 2,084 $284.54
3 2 4 / 3 2 / 2 2,200 $270.45
3 3 4 / 3 2 / 2 2,468 $250.81
4 1 4 / 3 2 / 2 2,662 $244.92
10 1 4 / 2.5 2 / 2 2,391 $262.23
10 2 4 / 2.5 2 / 2 2,654 $244.91
11 1 4 / 2.5 2 / 3 2,845 $239.36

All new home comparables are located within Menifee. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, master plan amenities, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $239.36 to $284.54 per square foot with the smallest sized homes at the high-end of the price per square foot range and the larger sized homes at the low-end of the price per square foot range. This is typical due to the economies of scale which are obtained during construction. Armonia Plan 4 has a current base asking price of $242.17 per square foot. There have been eight closings of Plan 4 with net sales prices ranging from $210.37 to $233.21 per square foot. It should be noted that the reported sales prices include upgrades, premiums, and options along with any concessions given by the builder while the concluded value relates to a base price for the plan, less concessions including interest rate buydowns. The average incentive/concession given by the builder within Armonia was $74,962 or $28.95 per square foot on Plan 4. There are no current escrows of Plan 4. All of the homes appear to be in excellent condition with no depreciation visible. It has been concluded that Armonia Plan 4 has a base current market value of $220.00 per square foot.

This calculates as follows:
2,589 sf x $220.00 = $569,580

The most appropriate new home comparable data for Belleza Plan 1 is shown below.

_________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 76
Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 1 4 / 3 2 / 2 2,662 --
1 4 4 / 3 2 / 2 2,069 $276.94
3 3 4 / 3 2 / 2 2,468 $250.81
3 4 4 / 3 2 / 2 2,589 $242.17
4 3 5 / 3 2 / 2 3,010 $232.22
5 5 6 / 3.5 2 / 2 3,280 $210.06
10 1 4 / 2.5 2 / 2 2,391 $262.23
10 2 4 / 2.5 2 / 2 2,654 $244.91
10 3 5 / 3 2 / 2 2,824 $235.48
11 1 4 / 2.5 2 / 3 2,845 $239.36
12 2 4 / 3.5 2 / 3 3,010 $231.98

All new home comparables are located within Menifee. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, master plan amenities, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $210.06 to $276.94 per square foot with the smallest sized homes at the high-end of the price per square foot range and the larger sized homes at the low-end of the price per square foot range. This is typical due to the economies of scale which are obtained during construction. Belleza Plan 1 has a current base asking price of $244.92 per square foot. There have been eight closings of Plan 1 with net sales prices ranging from $204.76 to $238.35 per square foot. It should be noted that the reported sales prices include upgrades, premiums, and options along with any concessions given by the builder while the concluded value relates to a base price for the plan, less concessions including interest rate buydowns. The average incentive/concession given by the builder within Belleza was $81,149 or $30.48 per square foot on Plan 1. There is currently one Plan 1 escrow with a price of $227.35 per square foot, however all options and concessions may not be included in the escrow prices as negotiations may be ongoing. All of the homes appear to be in excellent condition with no depreciation visible. It has been concluded that Belleza Plan 1 has a base current market value of $220.00 per square foot. This calculates as follows:

2,662 sf x $220.00 = $585,640

The most appropriate new home comparable data for Belleza Plan 2 is shown below.

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 1 4 / 3.5 1 / 2 2,760 --
2 3 4 / 2 1 / 2 2,084 $284.54
2 4 4 / 2 1 / 2 2,231 $274.76
4 1 4 / 2 2 / 2 2,662 $244.92
4 3 5 / 3 2 / 2 3,010 $232.22
5 3 5 / 3 1 / 2 2,277 $267.01
6 1 5 / 3 1 / 2 2,641 $248.77
8 3 3 / 2.5 1 / 2 2,311 $248.81
9 3 3 / 2.5 1 / 2 2,462 $268.88
12 1 4 / 3.5 1 / 2 2,760 $248.87

All new home comparables are located within Menifee or Romoland. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, master plan amenities, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $232.22 to $284.54 per square foot with the smallest sized homes at the high-end of the price per square foot range and the larger sized homes at the low-end of the price per square foot range. This is typical due to the economies of scale which are obtained during construction. Belleza Plan 2 has a current base asking price of $245.29 per square foot. There have been eight closings of Plan 2 with net sales prices ranging from $206.60 to $236.19 per square foot. It should be noted that the reported sales prices include upgrades, premiums, and options along with any concessions given by the builder while the concluded value relates to a base price for the plan, less concessions including interest rate buydowns. The average incentive/concession given by the builder within Belleza was $81,149 or $29.40 per square foot on Plan 2. There are currently two Plan 2 escrows with a price range of $227.56 to $235.07 per square foot, however all options and concessions may not be included in the escrow prices as negotiations may be ongoing. All of the homes appear to be in excellent condition with no depreciation visible. It has been concluded that Belleza Plan 2 has a base current market value of $222.00 per square foot. This calculates as follows:

2,760 sf x $222.00 = $612,720

The most appropriate new home comparable data for Belleza Plan 3 is shown below. _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 78

Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 3 5 / 3 2 / 2 3,010 --
3 4 4 / 3 2 / 2 2,589 $242.17
4 1 4 / 3 2 / 2 2,662 $244.92
4 4 5 / 3.5 2 / 3 4,184 $203.63
6 2 5 / 3.5 2 / 3 3,047 $225.46
6 3 5 / 4 2 / 3 3,336 $213.43
11 2 5 / 3.5 2 / 3 3,047 $232.03
11 3 5 / 3.5 2 / 3 3,237 $223.66
12 2 4 / 3.5 2 / 3 3,010 $231.98

The average incentive/concession given by the builder within Belleza was $81,149 or $26.96 per square foot on Plan 3. There are currently three Plan 3 escrows with a price range of $207.28 to $213.10 per square foot, however all options and concessions may not be included in the escrow prices as negotiations may be ongoing. All of the homes appear to be in excellent condition with no depreciation visible. It has been concluded that Belleza Plan 3 has a base current market value of $205.00 per square foot. This calculates as follows:
3,010 sf x $205.00 = $617,050

The most appropriate new home comparable data for Belleza Plan 4 is shown below.

_________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 79
Data Model Rm. Ct. Flrs/Pkg. Sq. Ft. Price/SF
Subj. 4 5 / 3.5 2 / 3 4,184 --
3 4 4 / 3 2 / 2 2,589 $242.17
4 3 5 / 3 2 / 2 3,010 $232.22
6 2 5 / 3.5 2 / 3 3,047 $225.46
6 3 5 / 4 2 / 3 3,336 $213.43
11 2 5 / 3.5 2 / 3 3,047 $232.03
11 3 5 / 3.5 2 / 3 3,237 $223.66
12 3 5 / 3 2 / 3 3,418 $220.42
12 4 5 / 3.5 2 / 3 4,134 $221.80

All new home comparables are located within Menifee. All are of similar quality, design, and appeal. Adjustments were considered (when applicable) for location, master plan amenities, lot size, stories, sales concessions, CFD taxes, common area benefits, total square footage, room count, garage space and other amenities. The new home comparables have a base price range from $213.43 to $242.17 per square foot with generally the smallest sized homes at the high-end of the price per square foot range and the larger sized homes at the low-end of the price per square foot range. This is typical due to the economies of scale which are obtained during construction. Belleza Plan 4 has a current base asking price of $203.63 per square foot. There have been seven closings of Plan 4 with net sales prices ranging from $167.06 to $191.37 per square foot. It should be noted that the reported sales prices include upgrades, premiums, and options along with any concessions given by the builder while the concluded value relates to a base price for the plan, less concessions including interest rate buydowns. The average incentive/concession given by the builder within Belleza was $81,149 or $19.40 per square foot on Plan 4. There are currently seven Plan 4 escrows with a price range of $182.80 to $192.33 per square foot, however all options and concessions may not be included in the escrow prices as negotiations may be ongoing.

All of the homes appear to be in excellent condition with no depreciation visible. It has been concluded that Belleza Plan 4 has a base current market value of $180.00 per square foot.

This calculates as follows:
4,184 sf x $180.00 = $753,120

Due to the number of homes under a single ownership (Lennar owns 30 production homes over 95 percent complete along with eight model homes), a Discounted Cash Flow Analysis needs to be considered.

Retail Value

Within Legado there are 38 builder-owned homes over 95 percent complete which includes eight model homes. Per interviews with builders, upgrades, and landscape/hardscape of up to $150,000 are installed in the model homes, however, the builders generally consider this a marketing cost and do not anticipate recovering this investment on a dollar-for-dollar basis. Based on actual sales information of the subject model homes and the current real estate market, a consideration of a $75,000 premium has been included with each of the model homes. As concluded above, the retail base value conclusions for the builder-owned homes are calculated as follows:

Sonrisa:

Plan 1 (2 x $484,785) $ 969,570 Plan 2 (1 x $474,880) 474,880
Plan 3 (2 x $489,706) 979,412
Plan 4 (2 x $506,905) 1,013,810
Tesoro:

Plan 1 (1 x $484,785) $ 484,785
Plan 2 (1 x $507,232) 507,232
Plan 3 (2 x $510,580) 1,021,160
Plan 4 (2 x $539,902) 1,079,804
Armonia:

Plan 1 (3 x $507,232) $ 1,521,696 Plan 2 (4 x $528,000) 2,112,000
Plan 3 (3 x $562,704) 1,688,112
Plan 4 (4 x $569,580) 2,278,320
Belleza:

Plan 1 (2 x $585,640) $ 1,171,280 Plan 2 (2 x $612,720) 1,225,440
Plan 3 (4 x $617,050) 2,468,200
Plan 4 (3 x $753,120) 2,259,360
Model Upgrades (8 x $75,000) 600,000

Retail Value $21,855,061
_________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 81

Absorption Period
In order to arrive at an absorption period for the 38 builder-owned homes, the absorption rate for the subject neighborhoods along with the surrounding developments has been reviewed. Legado had the first sale in April 2025, and 159 homes have sold to date which results in an overall average of 14.5 homes per month between the four communities. The average sales rate per community is 4.4 per month within Sonrisa, 3.1 sales per month within Tesoro, 3.3 sales per month within Armonia and 3.7 sales per month within Belleza.

Per the Ryness Report dated February 22, 2026, within the overall Inland Empire the average sales rate per project in 2025 was 3.1 sales per month. Within the subject’s market area of South Riverside, the average sales per project were also 3.1 sales per month in 2025. It appears that one community (Tesoro) is selling at the average rate with the other three communities selling at higher absorption rates than the area average. Twenty-one of the 38 builder-owned homes are in escrow with closings scheduled as the homes are completed. Taking into consideration the product and concluded sales prices along with the current escrows and current market conditions, it is the appraiser’s opinion that the 38 builder-owned homes will be absorbed within a four-month period at the concluded values.

Remaining Costs
As discussed under the property description section above, there is $82,184.55 per lot remaining for land development costs and fees associated with the builder-owned property. For the 38 builder-owned homes, this equates to $3,123,013 ($82,184.55 x 38) in remaining costs. For analysis purposes this will be spread evenly over the four-month absorption period.

Expenses
In determining the expense rate, several builders in the subject area have been interviewed as to their expenses on selling existing inventory. Expenses include marketing and general administrative costs. These costs typically range from six to ten percent depending on varying factors such as absorption period, intensity of marketing, etc. Due to the negotiations for possible buy-downs of interest and help with closing costs in the current market, an eight percent marketing cost is estimated along with two percent for general and administrative costs for a total of ten percent in expenses for this analysis. _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 82

Profit
Several interviews with merchant builders in the area were conducted in order to determine an appropriate profit percentage for the subject properties. In the early 2000s, developers typically attempted to achieve a 10 to 12 percent profit based on gross sales proceeds. During the Great Recession, this range was lowered considerably to six to 10 percent with some builders drastically lowering their profit potential in order to maintain their work force. The subject has experienced an above average sales rate. A ten percent profit is considered appropriate in the analysis for this project.

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

1. Interviews with merchant builders in the Menifee area

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

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

The homes within Legado began sales in April 2025, with the product being well received in the marketplace with over fourteen homes per month being sold to date between the four communities. Based on the sales rate within the subject project, the competition, the product and location, and our concluded values, a ten percent discount rate is considered appropriate for this analysis.

Discounted Cash Flow Summary
The discounted revenue (see DCF Analysis in addenda) for the Lennar-owned homes is $14,066,762.

Lennar Ownership Final Valuation
The Lennar-owned property within Legado Improvement Area 1 consists of eight models along with 30 production homes over 95 percent complete and 36 lots with homes under construction which have been valued as a finished lot rather than attribute value to a partially complete improvement. The final valuation of the Lennar owned property is shown on the following page.

KL LB Ownership Final Valuation
The KL LB-owned property within Legado Improvement Area 1 consists of 41 lots with homes under construction (under 95 percent complete) and 249 additional lots. The homes under construction have been valued on the basis of a finished lot rather than attribute value to a partially complete improvement. The final valuation of the KL LB owned property is shown below.

290 Lots $ 45,766,480
Total KL LB Ownership $ 45,766,480

Individual Owned Homes Valuation Conclusion
There are 127 individually owned homes within Legado Improvement Area 1. Based on the concluded value for each plan, the individually owned homes are valued as:

Sonrisa:

Plan 1 (9 x $484,785) $ 4,363,065 Plan 2 (10 x $474,880) 4,748,800
Plan 3 (10 x $489,706) 4,897,060
Plan 4 (9 x $506,905) 4,562,145
Tesoro:

Plan 1 (8 x $484,785) $ 3,878,280
Plan 2 (7 x $507,232) 3,550,624
Plan 3 (6 x $510,580) 3,063,480
Plan 4 (7 x $539,902) 3,779,314
Armonia:

Plan 1 (9 x $507,232) $ 4,565,088 Plan 2 (7 x $528,000) 3,696,000
Plan 3 (8 x $562,704) 4,501,632
Plan 4 (8 x $569,580) 4,556,640
Belleza:

Plan 1 (8 x $585,640) $ 4,685,120 Plan 2 (8 x $612,720) 4,901,760
Plan 3 (6 x $617,050) 3,702,300
Plan 4 (7 x $753,120) 5,271,840
Total Individual Owned $68,723,148

In additional review, we have reviewed the original builder sales prices for the homes within Legado Improvement Area 1. Closings for the 127 homes occurred between _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 84
August 20, 2025, and March 3, 2026. The reported closing prices by the builder for the homes total $69,686,541. The builder’s reported prices include premiums, upgrades and purchased options as well as taking into consideration all incentives and concessions given by the builder. All of the plans have had slight base price increases or decreases as the builder tried to find the correct price point with the largest increase on a plan being

1.4 percent and the largest decrease being 2.5 percent. The difference between the concluded value of $68,723,148 and the reported sales prices of $69,686,541 (which equates to 1.4 percent) is due to three factors. The premiums, upgrades and options purchased, the concessions given and the appreciation or depreciation of the homes. The above valuation is for the minimum market value as it takes into consideration the base plan price only and does not consider any options, premiums or upgrades which were purchased by the buyers; however, it does take into consideration the incentives and/or concessions which are needed in the subject marketplace to sell the homes. It is our conclusion that the original builder’s sales prices further substantiate the concluded minimum market value for the individually owned homes.

APPRAISAL REPORT SUMMARY

The appraisal assignment was to value the subject property which is within the boundaries of Menifee CFD No. 2022-3 IA 1. The property is being developed into Improvement Area 1 of Legado with four neighborhoods known as Sonrisa, Tesoro, Armonia and Belleza, all by Lennar Homes. All four communities have been well received in the marketplace and are selling with current escrows in place.

Legado Improvement Area 1 includes a total of 491 single-family proposed homes with 127 closed to individuals and an additional 32 houses in escrow to individuals which are due to close upon completion. We have reviewed the builder sales and reviewed the area’s Multiple Listing Service. Our search resulted in no closed resale homes and no current listings of resale homes within the subject property. All homes appear to be in excellent condition with no depreciation apparent. The 127 home closings occurred between August 20, 2025, and March 3, 2026. There are eight models and 30 production homes over 95 percent complete, with an additional 77 homes under construction and 249 finished lots. Lennar is using KL LB as a land banker on the project.

The subject property was valued using the Sales Comparison Approach to value and a mass appraisal technique. A minimum value was determined for the existing homes by concluding at a base value for each plan. The valuation considered the improvements/benefits to be funded by both the Menifee CFD No. 2022-3 IA 1 bond proceeds, along with the Menifee CFD No. 2022-3 IA 1 special tax lien. As a result of our investigation, the concluded market value for the subject property is:

The above values are stated subject to the Assumptions and Limiting Conditions of this report, the Appraiser’s Certification and as of March 3, 2026. _________________________________________________________________________________________________________ Menifee CFD No. 2022-3 IA 1 (Legado IA 1) - 2026 Series Bonds Kitty Siino & Associates, Inc. Page 86
APPRAISER’S CERTIFICATION

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ADDENDA

BOUNDARY MAP

CITY OF MENIFEE CFD NO. 2022-3
(Improvement Area 1 northern portion)

TRACT MAP NOS. 37408-1, 37408-2, 37408-
3, 37408-4, 37409-1, 37409-2 and 37409-3

CAL FIRE

HIGH FIRE HAZARD SEVERITY AREA MAP

Cal Fire High Fire Hazard Severity Map

(Blue outline approximate Subject Property Outline)
Red = Very High
Orange = High
Yellow = Moderate

RESIDENTIAL LAND SALES MAP
& SUMMARY CHART

RESIDENTIAL LAND SALES MAP

FINISHED LOT LAND SALES SUMMARY CHART

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

Finished Comments
Date Price per Lot Lot Price
1 Canterwood Phase 3 / NWC of
Leon Road and Craig Avenue,
Winchester / 466-310-026 / KB
Home / Ambient

Winchester

Feb-26

94 5,500

$10,650,000 /
$113,297

$227,500
Closing with a Final Map in process
in an unimproved condition. This
was the final phase at Canterwood.

Phase 2 closed in June 2024.

2 Nautical Cove Phase 3, NWC
Briggs Road and Holland Road,
Menifee / 364-200-009 / KB Home
/ Ambient

Menifee

January
2026

52 6,000

$2,506,110 /
$48,194

$250,000
Closed in an unimproved condition
with an approved final map. This
was the final takedown of three
(first 7/24 and second 8/25).

3 San Pedro Farms, NEC of Leon
Road and Holland Road,
Winchester / 466-350-019 / KB
Home / Rancon

Winchester

September /
2025

510

4,000 -
6,000

$7,000,000 /
$13,725

$240,000

Closed with an approved final map
and in an unimproved condition.

4 Salt Creek, SWC of Briggs Road
and Simpson Road, Menifee / 333-
200-062 / Meritage Homes /
Rancho De Los Cazadores
Menifee May 2025 310 Cluster
- 5,000
$15,000,000 /
$48,387 $228,000
Closed with an Approved Tentative
Tract Map in an unimproved
condition. Three Lot Segmentations
(Cluster, 4,500, 5,000 SF lots).

5 Menifee Vista, NW of Rouse Road
and Byers Road, Menifee / 330-
230-023 / Richmond American
Homes / JEN Partners
Menifee May 2025 96 7,200 $10,055,000 /
$104,740 $260,000 Closed with an approved Final Map
in an unimproved condition.

6 Park West Planning Area 4 / south
of Nuevo Road at Evans Road,
Perris / 310-180-072 / KB Home /
Mission Pacific Perris December
2024 184 5,000 $34,478,042 /
$187,381 $257,500
Closed in a blue-topped condition
with an approved final map. KB
Home now selling their Lennox at
Park West Community with homes
from $530K to $645K.

IMPROVED RESIDENTIAL SALES MAP
& SUMMARY CHART

IMPROVED RESIDENTIAL SALES MAP

IMPROVED RESIDENTIAL SALES SUMMARY CHART

Data
No.

Project Name
Location/Developer Plan Room
Count Floors/Parking Size
(SF)
Lot Size or
Density /
Absorption
Base Sales
Price Price/SF
1 Sonrisa at Legado / Rouse and
Sherman Roads, Menifee / Lennar
1 2
3 4
3 / 2
3 / 2.5
3 / 2.5
4 / 3
1 / 2
2 / 2
2 / 2
2 / 2
1,539
1,696
1,862
2,069
5,000 sf

4.4 sales/mo
$537,990
$534,990
$556,990
$572,990
$349.57
$315.44
$299.14
$276.94
2 Tesoro at Legado / Rouse and
Sherman Roads, Menifee / Lennar
1 2
3 4
3 / 2
3 / 2
4 / 2
4 / 2
1 / 2
1 / 2
1 / 2
1 / 2
1,539
1,936
2,084
2,231
5,500 sf

3.1 sales/mo
$540,990
$581,990
$592,990
$612,990
$351.52
$300.61
$284.54
$274.76
3 Armonia at Legado / Rouse and
Sherman Roads, Menifee / Lennar
1 2
3 4
3 / 2
4 / 3
4 / 3
4 / 3
1 / 2
2 / 2
2 / 2
2 / 2
1,936
2,200
2,468
2,589
5,500 sf

3.3 sales/mo
$580,990
$594,990
$618,990
$626,990
$300.10
$270.45
$250.81
$242.17
4 Belleza at Legado / Rouse and
Sherman Roads, Menifee / Lennar
1 2
3 4
4 / 3
4 / 3.5
5 / 3
5 / 3.5
2 / 2
1 / 2
2 / 2
2 / 3
2,662
2,760
3,010
4,184
7,000 sf

3.7 sales/mo
$651,990
$676,990
$698,990
$851,990
$244.92
$245.29
$232.22
$203.63
5 Pacific Parkview / NWC Mapes and
Antelope Road, Romoland / Pacific
Communities
1 2
3 4
5 4 / 2
5 / 3
5 / 3
5 / 3
6 / 3.5
1 / 2
1 / 2
1 / 2
1 / 2
2 / 2
1,974
2,118
2,277
2,661
3,280
6,500 sf
N/A
N/A
$588,990
$607,990
N/A
$688,990
N/A
$278.09
$267.01
N/A
$210.06
6 Trailview at Cimarron Ridge,
Goldenrod Ave and Valley Blvd,
Menifee / Pulte
1 2
3 5 / 3
5 / 3.5
5 / 4
1 / 2
2 / 3
2 / 3
2,641
3,047
3,336
7,000 sf lots

1.3 sales/mo

$656,990
$686,990
$711,990
$248.77
$225.46
$213.43
7 Arbor at Cimarron Ridge, NEC
Goetz Road and Valley Blvd,
Menifee / Del Webb
1 2
3 2 / 2
2 / 2
2 / 2
1 / 2
1 / 2
1 / 2
1,579
1,731
1,865
6,500 sf lots

1.4 sales/mo

$517,990
$532,990
$545,990
$328.05
$307.91
$292.76
8 Trellis at Cimarron Ridge, NWC
Goetz Road and Valley Blvd,
Menifee / Del Webb
1 2
3 2 / 2
3 / 2
3 / 2.5
1 / 2
1 / 2
1 / 2
2,056
2,191
2,311
7,000 sf lots

1.7 sales/mo

$557,990
$564,990
$574,990
$271.40
$257.87
$248.81
9 Heritage at Banner Park / Domenigoni
Pkwy and Lindenberger Road, Menifee
/ Pulte Homes
1 2
3 3 / 2
3 / 2.5
3 / 2.5
1 / 2
1 / 2
1 / 3
2,191
2,311
2,462
7,900 sf lots

2.2 sales/mo

$624,990
$637,990
$661,990
$285.25
$276.07
$268.88

10 Merit at Banner Park / Domenigoni
Pkwy and Lindenberger Road, Menifee
/ Pulte Homes
1 2
3 4 / 2.5
4 / 2.5
5 / 3
2 / 2
2 / 2
2 / 2
2,391
2,654
2,824
6,000 sf lots

1.9 sales/mo

$626,990
$649,990
$664,990
$262.23
$244.91
$235.48
11 Crest at Banner Park / Domenigoni
Pkwy and Lindenberger Road, Menifee
/ Pulte Homes
1 2 (NG)
3 (NG)
4 / 2.5
5 / 3.5
5 / 3.5
2 / 3
2 / 3
2 / 3
2,845
3,047
3,237
6,500 sf lots

2.0 sales/mo $680,990
$706,990
$723,990
$239.36
$232.03
$223.66
12 Quartz Trail / SEC Holland Road and
Evans Road, Menifee / Lennar
1 2
3 4
4 / 3.5
5 / 3
5 / 3
5 / 3.5
1 / 2
2 / 3
2 / 3
2 / 3
2,760
3,010
3,418
4,134

6,000 sf lots

4.5 sales/mo
$686,890
$698,265
$753,390
$916,936
$248.87
$231.98
$220.42
$221.80

APPRAISER’S QUALIFICATIONS

QUALIFICATIONS OF KITTY S. SIINO, MAI

Education

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

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

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

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

Employment

1988 - Present:

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

1986-1988:

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

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

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

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

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

Organizations
MAI #11145 - The Appraisal Institute

Public Financing
CASTOFF Meetings, 2006, 2007, 2008, 2009, 2010, 2011, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2022 and 2024
Speaker, Mello-Roos & Special Assessment Financing, UCLA Extension Public Policy Program, February 2009 and March 2011
Education

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

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

Menifee City CouncilMay 6, 2026

Menifee City Council
May 6, 2026