Agenda packet — Mountain House City Council, August 26, 2026 (part 5 of 11)

The Supplemental Fiscal Agent Agreement pursuant to which Additional Bonds are issued shall specify whether a parity reserve fund or a separate reserve fund is being established, and the Reserve Requirement shall be calculated accordingly, provided that in no event shall the Reserve Requirement be in excess of the amount permitted by the applicable provisions of the Code without having to restrict the yield of any investment purchased with any portion of such deposit and, in the event the amount of any such deposit into the Reserve Fund is so limited, the Reserve Requirement shall, in connection with the issuance of such Additional Bonds, be increased only by the amount of such deposit as permitted by the Code. “Resolution” means Resolution No. 2026-_____, adopted by the City Council of the City on __________, 2026, which resolution authorized the issuance of the Bonds. “Resolution of Formation” means Resolution No. R-2024-04, adopted by the Board of Directors of the Mountain House Community Services District, as predecessor to the City, establishing the District and a Future Annexation Area, including to the extent the context requires, parcels subject to the Resolution of Formation as originally adopted pursuant to concluded annexation into the District by unanimous approval. “Series” means any series of bonds authorized for Improvement Area No. 13 pursuant to this Fiscal Agent Agreement or any Supplemental Agreement. “Special Tax Administrator” means Goodwin Consulting Group, Inc., Sacramento, California, or any other entity which may at any time be substituted in its place by the City. “Special Tax Fund” means the fund by that name established by Section 3.03(A) hereof. “Special Taxes” means the “Facilities Special Tax” as defined in the Rate and Method, levied within Improvement Area No. 13 pursuant to the Act, the Ordinance and this Agreement. “Special Tax Revenues” means the proceeds of the Special Taxes annually received by the City, excluding any interest and penalties thereon collected in connection with delinquent Special Taxes, less an amount equal to the Administrative Expense Priority, including all scheduled payments and delinquent payments thereof, and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes.

Item 8.1
Mountain House Page 1051 of 1946 11 “Supplemental Agreement” means an agreement which is amendatory of or supplemental to this Agreement, but only if and to the extent that such agreement is specifically authorized hereunder.
“Surplus Account” means the account of the Special Tax Fund by that name established by Section 3.03(A) hereof.

Item 8.1
Mountain House Page 1052 of 1946 12 ARTICLE II

THE BONDS
Section 2.01. Principal Amount; Designation. Bonds in the aggregate principal amount of $____________ are hereby authorized to be issued by the City for Improvement Area No. 13 under and subject to the terms of the Resolution and this Agreement, the Act and other applicable laws of the State of California. The Bonds shall be designated the “Improvement Area No. 13 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) Special Tax Bonds Series 2026.”
Section 2.02. Terms of Bonds.
(A) Form; Denominations. The Bonds shall be issued as fully registered Bonds without coupons in the denomination of $5,000 or any integral multiple of $5,000 in excess thereof. The Bonds shall be lettered and numbered in a customary manner as determined by the Fiscal Agent.
(B) Date of Bonds. The Bonds shall be dated the Closing Date for the Bonds. (C) CUSIP Identification Numbers. So long as the Bonds are registered to the Original Purchaser no “CUSIP” identification numbers shall be assigned to the Bonds. (D) Maturities. The Bonds shall be issued as serial bonds and shall mature and become payable as follows:

Maturity Date
(September 1)
Principal
Amount
Interest
Rate
Maturity Date
(September 1)
Principal
Amount
Interest
Rate
(E) Interest. The Bonds shall bear interest at the rates set forth above payable on the Interest Payment Dates in each year. Interest shall be calculated on the basis of a 360-day year composed of twelve 30-day months. Each Bond shall bear interest from the Interest Payment Date next preceding the date of authentication thereof unless (i) it is authenticated on an Interest Payment Date, in which event it shall bear interest from such date of authentication, or (ii) it is authenticated prior to an Interest Payment Date and after the close of business on the Item 8.1
Mountain House Page 1053 of 1946 13 Record Date preceding such Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or (iii) it is authenticated prior to the Record Date preceding the first Interest Payment Date, in which event it shall bear interest from the Closing Date; provided, however, that if at the time of authentication of a Bond, interest is in default thereon, such Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment thereon.
(F) Method of Payment. The principal of and interest on the Bonds and any premium thereon are payable in lawful money of the United States of America. So long as the Original Purchaser is the owner of the Bonds the Fiscal Agent may transfer payments to the Authority Trustee in whatsoever manner the Fiscal Agent and Authority Trustee deem expeditious.

All Bonds paid by the Fiscal Agent pursuant to this Section shall be cancelled by the Fiscal Agent. The Fiscal Agent shall destroy the cancelled Bonds and issue a certificate of destruction thereof to the City.

Section 2.03. Redemption.
(A) Redemption Dates.
(i) Optional Redemption. The Bonds maturing on and after September 1, ______ are subject to redemption prior to their respective stated maturities at the option of the City, from moneys deposited by the Authority or the City from any source of available funds, as a whole or in part (in such maturities as may be specified by the City and at random within a maturity) on any date on and after September 1, ______ at the following respective redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed), plus accrued interest thereon to the date of redemption:

Redemption Dates
Redemption
Price
September 1, _____ through August 31, _____ 103%
September 1, _____ through August 31, _____ 102
September 1, _____ through August 31, _____ 101
September 1, _____ and any date thereafter 100
(ii) Mandatory Redemption From Prepayments. The Bonds are subject to mandatory redemption from prepayments of the Special Tax by property owners, in whole or in part among maturities as shall be specified by the City and by lot within a maturity, on any Interest Payment Date at the following respective redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed), plus accrued interest thereon to the date of redemption:

Redemption Dates
Redemption
Price
Interest Payment Dates through March 1, _____ 103%
September 1, _____ and March 1, _____ 102
September 1, _____ and March 1, _____ 101
September 1, _____ and thereafter 100
Item 8.1
Mountain House Page 1054 of 1946 14 The proceeds of any such prepayment shall be deposited in the Prepayment Account of the Bond Fund and applied by the Fiscal Agent to pay the redemption price of the Bonds.

In lieu of redemption under this Section 2.03, moneys in the Bond Fund may be used and withdrawn by the Fiscal Agent for purchase of Outstanding Bonds, upon the filing with the Fiscal Agent of an Officer’s Certificate requesting such purchase, at public or private sale as and when, and at such prices (including brokerage and other charges) as such Officer’s Certificate may provide, but in no event may Bonds be purchased at a price in excess of the principal amount thereof, plus interest accrued to the date of purchase. (B) Notice to Fiscal Agent. The City shall give the Fiscal Agent an Officer’s Certificate containing notice of its intention to redeem Bonds pursuant to subsections (A)(i) and (A)(ii) not less than 45 days prior to the applicable redemption date. (C) Redemption Procedure by Fiscal Agent. The Fiscal Agent shall cause notice of any redemption to be mailed by first class mail, postage prepaid, at least 20 days but not more than 60 days prior to the date fixed for redemption, to the respective registered Owners of any Bonds designated for redemption, at their addresses appearing on the Bond registration books in the Principal Office of the Fiscal Agent; but such mailing shall not be a condition precedent to such redemption and failure to mail or to receive any such notice, or any defect therein, shall not affect the validity of the proceedings for the redemption of such Bonds. Notwithstanding the foregoing, so long as the Original Purchaser is the owner of the Bonds giving of notice shall notice shall not be required.

The City has the right to rescind any notice of the redemption of Bonds under Section

2.03(A)(i) by written notice to the Fiscal Agent on or prior to two Business Days prior the date fixed for redemption. Any notice of redemption shall be cancelled and annulled if for any reason funds will not be or are not available on the date fixed for redemption for the payment in full of the Bonds then called for redemption, and such cancellation shall not constitute an event of default. The City and the Fiscal Agent have no liability to the Owners or any other party related to or arising from such rescission of redemption. The Fiscal Agent shall mail notice of such rescission of redemption in the same manner as the original notice of redemption was sent under this Section.

Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for such purpose shall, to the extent practicable, bear the CUSIP number, if any, identifying, by issue and maturity, of the Bonds being redeemed with the proceeds of such check or other transfer.

Whenever provision is made in this Agreement for the redemption of less than all of the Bonds of any maturity, the Fiscal Agent shall select the Bonds to be redeemed, from all Bonds or such given portion thereof of such maturity by lot in any manner which the Fiscal Agent in its sole discretion shall deem appropriate.

Upon surrender of Bonds redeemed in part only, the City shall execute and the Fiscal Agent shall authenticate and deliver to the registered Owner, at the expense of the City, a new Bond or Bonds, of the same series and maturity, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond or Bonds. (D) Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the principal of, and interest and any premium on, the Bonds so called for redemption shall have been deposited in the Bond Fund, such Bonds so called shall cease to Item 8.1
Mountain House Page 1055 of 1946 15 be entitled to any benefit under this Agreement other than the right to receive payment of the redemption price, and no interest shall accrue thereon on or after the redemption date specified in such notice.

All Bonds redeemed and purchased by the Fiscal Agent pursuant to this Section shall be canceled by the Fiscal Agent. The Fiscal Agent shall destroy the cancelled Bonds and issue a certificate of destruction thereof to the City.

Section 2.04. Form of Bonds. The Bonds, the form of Fiscal Agent’s certificate of authentication and the form of assignment, to appear thereon, shall be substantially in the forms, respectively, set forth in Exhibit A attached hereto and by this reference incorporated herein, with necessary or appropriate variations, omissions and insertions, as permitted or required by this Agreement, the Resolution and the Act.

Section 2.05. Execution of Bonds. The Bonds shall be executed on behalf of the City by the Mayor and the City Clerk of the City who are in office on the date of adoption of this Agreement or at any time thereafter, and the seal of the City shall be impressed, imprinted or reproduced by facsimile signature thereon. If any officer whose signature appears on any Bond ceases to be such officer before delivery of the Bonds to the Owner, such signature shall nevertheless be as effective as if the officer had remained in office until the delivery of the Bonds to the Owner. Any Bond may be signed and attested on behalf of the City by such persons as at the actual date of the execution of such Bond shall be the proper officers of the City although at the nominal date of such Bond any such person shall not have been such officer of the City.

Only such Bonds as shall bear thereon a certificate of authentication in substantially the form set forth in Exhibit A, executed and dated by the Fiscal Agent, shall be valid or obligatory for any purpose or entitled to the benefits of this Agreement, and such certificate of authentication of the Fiscal Agent shall be conclusive evidence that the Bonds registered hereunder have been duly authenticated, registered and delivered hereunder and are entitled to the benefits of this Agreement.

Section 2.06. Transfer of Bonds. Any Bond may, in accordance with its terms, be transferred, upon the books required to be kept pursuant to the provisions of Section 2.08 by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Bond for cancellation, accompanied by delivery of a duly written instrument of transfer in a form acceptable to the Fiscal Agent. The cost for any services rendered or any expenses incurred by the Fiscal Agent in connection with any such transfer shall be paid by the City. The Fiscal Agent shall collect from the Owner requesting such transfer any tax or other governmental charge required to be paid with respect to such transfer.

Whenever any Bond or Bonds shall be surrendered for transfer, the City shall execute and the Fiscal Agent shall authenticate and deliver a new Bond or Bonds, for a like aggregate principal amount of Bonds of authorized denominations and of the same maturity.

No transfers of Bonds shall be required to be made (i) within fifteen (15) days prior to the date established by the Fiscal Agent for selection of Bonds for redemption or (ii) with respect to a Bond after such Bond has been selected for redemption.

Section 2.07. Exchange of Bonds. Bonds may be exchanged at the Principal Office of the Fiscal Agent for a like aggregate principal amount of Bonds of authorized denominations and of the same maturity. The cost for any services rendered or any expenses incurred by the Fiscal Item 8.1
Mountain House Page 1056 of 1946 16 Agent in connection with any such exchange shall be paid by the City. The Fiscal Agent shall collect from the Owner requesting such exchange any tax or other governmental charge required to be paid with respect to such exchange.

No exchanges of Bonds shall be required to be made (i) within fifteen (15) days prior to the date established by the Fiscal Agent for selection of Bonds for redemption or (ii) with respect to a Bond after such Bond has been selected for redemption.

Section 2.08. Bond Register. The Fiscal Agent will keep or cause to be kept, at its Principal Office, sufficient books for the registration and transfer of the Bonds (the “Bond Register”), which books shall show the series number, date, amount, rate of interest and Owner of each Bond and shall at all times be open to inspection by the City during regular business hours upon reasonable notice; and, upon presentation for such purpose, the Fiscal Agent shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said books, the ownership of the Bonds as hereinbefore provided.

Section 2.09. Temporary Bonds. The Bonds may be initially issued in temporary form exchangeable for definitive Bonds when ready for delivery. The temporary Bonds may be printed, lithographed or typewritten, shall be of such denominations as may be determined by the City, and may contain such reference to any of the provisions of this Agreement as may be appropriate.

Every temporary Bond shall be executed by the City upon the same conditions and in substantially the same manner as the definitive Bonds. If the City issues temporary Bonds it will execute and furnish definitive Bonds without delay and thereupon the temporary Bonds shall be surrendered, for cancellation, in exchange for the definitive Bonds at the Principal Office of the Fiscal Agent or at such other location as the Fiscal Agent shall designate, and the Fiscal Agent shall authenticate and deliver in exchange for such temporary Bonds an equal aggregate principal amount of definitive Bonds of authorized denominations. Until so exchanged, the temporary bonds shall be entitled to the same benefits under this Agreement as definitive Bonds authenticated and delivered hereunder.

Section 2.10. Bonds Mutilated, Lost, Destroyed or Stolen. If any Bond shall become mutilated, the City shall execute, and the Fiscal Agent shall authenticate and deliver, a new Bond of like tenor and principal amount in exchange and substitution for the Bond so mutilated, but only upon surrender to the Fiscal Agent of the Bond so mutilated. Every mutilated Bond so surrendered to the Fiscal Agent shall be canceled by it and destroyed by the Fiscal Agent who shall deliver a certificate of destruction thereof to the City. If any Bond shall be lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Fiscal Agent and, if such evidence be satisfactory to it and indemnity for the Fiscal Agent and the City satisfactory to the Fiscal Agent shall be given, the City shall execute, and the Fiscal Agent shall authenticate and deliver, a new Bond of like tenor and principal amount in lieu of and in substitution for the Bond so lost, destroyed or stolen. The City may require payment of a sum not exceeding the actual cost of preparing each new Bond delivered under this Section and of the expenses which may be incurred by the City and the Fiscal Agent for the preparation, execution, authentication and delivery. Any Bond delivered under the provisions of this Section in lieu of any Bond alleged to be lost, destroyed or stolen shall constitute an original additional contractual obligation on the part of the City whether or not the Bond so alleged to be lost, destroyed or stolen is at any time enforceable by anyone, and shall be equally and proportionately entitled to the benefits of this Agreement with all other Bonds issued pursuant to this Agreement.

Section 2.11. Limited Obligation. All obligations of the City under this Agreement and the Bonds shall be special obligations of the City, payable solely from the Special Tax Revenues Item 8.1
Mountain House Page 1057 of 1946 17 and the funds pledged therefore hereunder. Neither the full faith and credit nor the taxing power of the City (except to the limited extent set forth herein) or the State of California or any political subdivision thereof is pledged to the payment of the Bonds.

Section 2.12. No Acceleration. The principal of the Bonds shall not be subject to acceleration hereunder. Nothing in this Section 2.13 shall in any way prohibit the redemption of Bonds under Section 2.03 hereof, or the defeasance of the Bonds and discharge of this Agreement under Section 9.03 hereof.

Item 8.1
Mountain House Page 1058 of 1946 18 ARTICLE III

ISSUANCE OF BONDS
Section 3.01. Issuance and Delivery of Bonds. At any time after the execution of this Agreement, the City may issue the Bonds in the aggregate principal amount set forth in Section 2.01 or as authorized in any supplemental agreement and deliver such Bonds to the Original Purchaser. The Authorized Officers of the City are hereby authorized and directed to deliver any and all documents and instruments necessary to cause the issuance of Bonds in accordance with the provisions of the Act, the Resolution and this Agreement, to authorize the payment of Costs of Issuance of the Bonds from the proceeds of the Bonds and to do and cause to be done any and all acts and things necessary or convenient for delivery of the Bonds to the Original Purchaser.

Section 3.02. Application of Proceeds of Sale of Bonds.

The proceeds of the purchase of the Bonds by the Original Purchaser in the amount of $___________, calculated as the principal amount thereof ($____________.00) plus net original issue premium of $___________ and less allocated costs of the Underwriter’s discount, costs of issuance, capitalized interest and Reserve Requirement Allocation for the Authority Revenue Bonds totaling $___________, shall be paid to the Fiscal Agent, who shall forthwith deposit all of such proceeds on the Closing Date into the Improvement Fund.

Section 3.03. Special Tax Fund.
(A) Establishment of Special Tax Fund. There is hereby established as a separate fund to be held by the Finance Director, known as Improvement Area No. 13 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) Special Tax Bonds, Series 2026, Special Tax Fund. Within the Special Tax Fund, the Finance Director shall establish and maintain two accounts, (i) the Debt Service Account, to the credit of which the City shall deposit, immediately upon receipt, all Special Tax Revenues received by the City, and any amounts required by Section 3.05(B) to be deposited in the Special Tax Fund, and (ii) the Surplus Account, to the credit of which the City shall deposit surplus Special Tax Revenues described in Section 3.03(B) below. Moneys in the Special Tax Fund shall be held in trust by the City for the benefit of the City and the Owners of the Bonds, shall be disbursed as provided below and, pending any disbursement, shall be subject to a lien in favor of the Owners of the Bonds.
(B) Disbursements. All Special Tax Revenues shall be deposited in the Debt Service Account upon receipt. No later than 10 Business Days prior to each Interest Payment Date, the City shall withdraw from the Debt Service Account and transfer (i) to the Authority Trustee for deposit into the Authority Reserve Fund, an amount, but only to the extent that a draw on the Authority Reserve Fund has occurred which is attributable to deficiencies in the payment of the Bonds such that the amount then on deposit therein is equal to the Reserve Requirement Allocation, and (ii) to the Fiscal Agent for deposit in the Bond Fund an amount, taking into account any amounts then on deposit in the Bond Fund such that the amount in the Bond Fund equals the principal, premium, if any, and interest due on the Bonds on the next Interest Payment Date, provided, however, that as soon as practicable after the receipt by the City of any prepayments of Special Taxes, but no later than 30 Business Days after such receipt, the City shall transfer such prepayments to the Fiscal Agent for deposit into the Prepayment Account of the Bond Fund to be used for the redemption of bonds as instructed by the City. After the Item 8.1
Mountain House Page 1059 of 1946 19 transfers under subsections (i) and (ii) have been made, the City may, on or after September 2 of each year, transfer to the Surplus Account the amount remaining in the Debt Service Account.

From time to time, the City may withdraw from the Surplus Account of the Special Tax Fund, to be used for any lawful purpose related to the District. (C) Investment. Moneys in the Special Tax Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits resulting from such investment and deposit shall be retained in the Special Tax Fund to be used for the purposes thereof.

Section 3.05. Improvement Fund.
(A) Establishment of Improvement Fund. There is hereby established as a separate fund to be held by the Fiscal Agent, known as Improvement Area No. 13 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) Special Tax Bonds Improvement Fund to the credit of which a deposit shall be made as required by Section 3.02 and as required by Section 3.03. Moneys in the Improvement Fund shall be held in trust by the Fiscal Agent and shall be disbursed as provided in subsection (B) of this Section. (B) Procedure for Disbursement. Disbursements from the Improvement Fund shall be made as determined by an Authorized Officer for the payment or reimbursement of the costs of the Project, including for costs of acquisition of portions of the Project in accordance with the Acquisition Agreement, authorized administrative expenses of the City, debt service on the Bonds in the event of default in the payment of Special Taxes by the Developer (as defined in the Acquisition Agreement), and/or otherwise as authorized by the City, by submission of an Officer’s Certificate to the Fiscal Agent requesting disbursement of moneys. The Fiscal Agent need not make any such payment if it has received notice of any lien, right to lien or attachment upon, or claim affecting the right to receive payment of, any of the moneys to be so paid, that has not been released or will not be released simultaneously with such payment. The Fiscal Agent shall not incur any liability for any disbursement from the Improvement Fund made in reliance upon any Officer’s Certificate.
(C) Investment. Moneys in the Improvement Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits from the investment of amounts in the Improvement Fund shall be retained in the Improvement Fund to be used for the purposes of the Improvement Fund.
(D) Closing of Fund. Upon the filing of an Officer’s Certificate stating that the portion of the Project to be financed from the Improvement Fund has been completed and that all costs of such portion of the Project have been paid or are not required to be paid from the Improvement Fund, the Authorized Officer shall request the Fiscal Agent to transfer the amount, if any, remaining in the Improvement Fund to the Bond Fund for application to the payment of principal of and interest on the Bonds in accordance with Section 4.02 and the Improvement Fund shall be closed.

Item 8.1
Mountain House Page 1060 of 1946 20 ARTICLE IV
SPECIAL TAX REVENUES; BOND FUND
Section 4.01. Pledge of Special Tax Revenues and Other Amounts. All of the Special Tax Revenues and, until disbursed as provided herein, all moneys deposited in the Special Tax Fund and in the Bond Fund are hereby pledged to secure the repayment of the Bonds. In addition, the 2025 Bonds shall be secured by a pledge of all amounts in the Reserve Fund, and a series of Additional Bonds may be secured by a reserve account within the Reserve Fund or a separate reserve fund, as provided in the applicable Supplemental Agreement for such Series.

Such pledge shall constitute a first lien on the Special Tax Revenues and said amounts.

The Special Tax Revenues and all moneys deposited into such funds (except as otherwise provided herein) are hereby dedicated in their entirety to the payment of the principal of, and interest and any premium on, the Bonds as provided herein and in the Act until all of the Bonds have been paid and retired or until moneys or Federal Securities have been set aside irrevocably for that purpose in accordance with Section 9.03.

Amounts in the Surplus Account, the Improvement Fund and the Costs of Issuance Fund are not pledged to the repayment of the Bonds. The facilities acquired with the proceeds of the Bonds are not in any way pledged to the repayment of the Bonds. Any proceeds of condemnation, destruction or other disposition of any facilities financed with the proceeds of the Bonds are not pledged to the repayment of the Bonds and are free and clear of any lien or obligation imposed hereunder.

Section 4.02. Bond Fund.
(A) Establishment of Bond Fund. There is hereby established as a separate fund to be held by the Fiscal Agent, known as Improvement Area No. 13 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) Special Tax Bonds Bond Fund, to the credit of which deposits shall be made as required by Section 3.03(B)(ii), Section 4.03 and any other amounts required to be deposited therein by this Agreement or the Act. Within the Bond Fund, the Fiscal Agent shall establish a Prepayment Account and deposit therein moneys received, if any, from prepayments of the Special Tax pursuant to Section

2.03(A)(ii). Moneys in the Bond Fund shall be held in trust by the Fiscal Agent for the benefit of the Owners of the Bonds, shall be disbursed for the payment of the principal of, and interest and any premium on, the Bonds as provided below, and, pending such disbursement, shall be subject to a lien in favor of the Owners of the Bonds.
(B) Disbursements. On each Interest Payment Date, the Fiscal Agent shall withdraw from the Bond Fund and pay to the Owners of the Bonds the principal of, and interest and any premium, then due and payable on the Bonds, including any amounts due on the Bonds by reason of any redemption of the Bonds as provided under Section 2.03(A)(i) or 2.03(A)(ii).

Moneys in the Prepayment Account shall be disbursed for redemption of Bonds as instructed by the City.

In the event that amounts in the Bond Fund are insufficient to pay regularly scheduled payments of principal of and interest on the Bonds, the Fiscal Agent shall notify the Authority that a withdrawal from the Authority Reserve Fund may be necessary, the amount of such insufficiency, and the Fiscal Agent shall provide written notice to the Finance Director and the Special Tax Administrator of the insufficiency.

Item 8.1
Mountain House Page 1061 of 1946 21 If, after the foregoing transfer, there are insufficient funds in the Bond Fund to make the payments provided for to pay regularly scheduled payments of principal of and interest on the Bonds, the Fiscal Agent shall apply the available funds first to the payment of interest on the Bonds, then to the payment of principal due on the Bonds. (C) Investment. Moneys in the Bond Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits resulting from such investment and deposit shall be retained in the Bond Fund to be used for the purposes of such fund. (D) Deficiency. If ten days before any Interest Payment Date it appears to the Fiscal Agent that there is a danger of deficiency in the Bond Fund and that the Fiscal Agent may be unable to pay regularly scheduled debt service on the Bonds in a timely manner, the Fiscal Agent shall report to the Finance Director such fact. The City covenants to increase the levy of the Special Taxes in the next Fiscal Year (subject to the maximum amount authorized for Improvement Area No. 13) in accordance with the procedures set forth in the Act for the purpose of curing Bond Fund deficiencies.

If on any Interest Payment Date the Fiscal Agent is unable to pay principal, interest and premium, if any, due on any Interest Payment Date for the Bonds due to insufficient funds in the Bond Fund, or if funds are needed to fully fund the Reserve Requirement Allocation, the Fiscal Agent shall notify the Finance Director in writing of such fact, and the Finance Director shall notify CDIAC of such fact within 10 days of such Interest Payment Date. The Fiscal Agent has no obligation under this Agreement to provide notice or disclosure to the Bondowners of insufficient funds or anticipation of deficiency in the Bond Fund.

Item 8.1
Mountain House Page 1062 of 1946 22 ARTICLE V

OTHER COVENANTS OF THE CITY
Section 5.01. Punctual Payment. The City will punctually pay or cause to be paid the principal of, and interest and any premium on, the Bonds when and as due in strict conformity with the terms of this Agreement, and it will faithfully observe and perform all of the conditions, covenants and requirements of this Agreement and all Supplemental Agreements and of the Bonds.

Section 5.02. Limited Obligation. The Bonds are limited obligations of the City on behalf of Improvement Area No. 13 of the District and are payable solely from and secured solely by the Special Tax Revenues and the amounts in certain funds and accounts as described herein.

Section 5.03. Extension of Time for Payment. In order to prevent any accumulation of claims for interest after maturity, the City shall not, directly or indirectly, extend or consent to the extension of the time for the payment of any claim for interest on any of the Bonds and shall not, directly or indirectly, be a party to the approval of any such arrangement by purchasing or funding said claims for interest or in any other manner. In case any such claim for interest shall be extended or funded, whether or not with the consent of the City, such claim for interest so extended or funded shall not be entitled, in case of default hereunder, to the benefits of this Agreement, except subject to the prior payment in full of the principal of all of the Bonds then Outstanding and of all claims for interest which shall not have been so extended or funded.

Section 5.04. Against Encumbrances. The City will not encumber, pledge or place any charge or lien upon any of the Special Tax Revenues or other amounts pledged to the Bonds superior to or on a parity with the pledge and lien herein created for the benefit of the Bonds, except as permitted by this Agreement.

Section 5.05. Books and Accounts. The City will keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the City, in which complete and correct entries shall be made of all transactions relating to the expenditure of amounts disbursed from the Special Tax Fund and to the Special Tax Revenues. Such books of record and accounts shall at all times during business hours be subject to the inspection of the Owners of not less than ten percent (10%) of the principal amount of the Bonds then Outstanding, or their representatives duly authorized in writing.

The Fiscal Agent will keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the Fiscal Agent, in which complete and correct entries shall be made of all transactions of the Fiscal Agent relating to the expenditure of amounts disbursed from funds and accounts held by the Fiscal Agent hereunder. Such books of record and accounts shall at all times during business hours and upon reasonable prior notice, be subject to the inspection of the City and the Owners of not less than ten percent (10%) of the principal amount of the Bonds then Outstanding, or their representatives duly authorized in writing.

Section 5.06. Protection of Security and Rights of Owners. The City will preserve and protect the security of the Bonds and the rights of the Owners, and will warrant and defend their rights against all claims and demands of all persons. From and after the delivery of any of the Bonds by the City, the Bonds shall be incontestable by the City.

Item 8.1
Mountain House Page 1063 of 1946 23 Section 5.07. Compliance with Law; Completion of Project. The City will comply with all applicable provisions of the Act and the law in completing the acquisition and construction of the Project; provided that the City shall have no obligation to advance any funds to complete the Project in excess of the amounts available therefor in the Improvement Fund.

Section 5.08. Private Activity Bond Limitation. The City shall assure that the proceeds of the Bonds are not so used as to cause the Authority Revenue Bonds to satisfy the private business tests of Section 141(b) of the Code or the private loan financing test of Section 141(c) of the Code.

Section 5.09. Federal Guarantee Prohibition. The City shall not take any action or permit or suffer any action to be taken if the result of the same would be to cause any of the Authority Revenue Bonds to be “federally guaranteed” within the meaning of Section 149(b) of the Code.

Section 5.10. Collection of Special Tax Revenues. The City shall comply with all requirements of the Act so as to assure the timely collection of Special Tax Revenues, including without limitation, the enforcement of delinquent Special Taxes.

On or within five Business Days of each June 1, the Fiscal Agent shall provide the Finance Director with a notice stating the amount then on deposit in the Bond Fund and any insufficiency of the amount of the Reserve Requirement Allocation. The receipt of such notice by the Finance Director shall in no way affect the obligations of the Finance Director under the following two paragraphs. Upon receipt of such notice, the Finance Director shall ascertain the relevant parcels on which the Special Taxes are to be levied, taking into account any parcel splits during the preceding and then current year.

The City shall effect the levy of the Special Taxes each Fiscal Year in accordance with the Ordinance such that the computation of the levy is complete before the final date on which the County Auditor will accept the transmission of the Special Tax amounts for the parcels within Improvement Area No. 13 for inclusion on the next secured real property tax roll. Upon the completion of the computation of the amounts of the levy, the City shall prepare or cause to be prepared, and shall transmit to the Finance Director, such data as the County Auditor requires to include the levy of the Special Taxes on the next secured real property tax roll.

The City shall fix and levy the amount of Special Taxes within Improvement Area No. 13 required for the payment of principal of and interest on any Outstanding Bonds becoming due and payable during the ensuing year, including any necessary replenishment or expenditure of the Reserve Requirement Allocation and an amount estimated to be sufficient to pay the Administrative Expenses during such year, all in accordance with the Rate and Method and the Ordinance.

The Special Taxes shall be payable and be collected in the same manner and at the same time and in the same installment as the general taxes on real property are payable, and have the same priority, become delinquent at the same times and in the same proportionate amounts and bear the same proportionate penalties and interest after delinquency as do the general taxes on real property. Notwithstanding the foregoing, the Special Taxes may be collected in such other manner as the City shall prescribe if necessary to pay the debt service on the Bonds.

Section 5.11. Further Assurances. The City will adopt, make, execute and deliver any and all such further resolutions, instruments and assurances as may be reasonably necessary or proper to carry out the intention or to facilitate the performance of this Agreement, and for the Item 8.1
Mountain House Page 1064 of 1946 24 better assuring and confirming unto the Owners of the rights and benefits provided in this Agreement.

Section 5.12. No Arbitrage. The City shall not take, or permit or suffer to be taken by the Fiscal Agent or otherwise, any action with respect to the gross proceeds of the Bonds which if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the Closing Date would have caused the Authority Revenue Bonds to be “arbitrage bonds” within the meaning of Section 148 of the Code and Regulations.

Section 5.13. Maintenance of Tax-Exemption. The City shall take all actions necessary to assure the exclusion of interest on the Authority Revenue Bonds from the gross income of the Owners of the Authority Revenue Bonds to the same extent as such interest is permitted to be excluded from gross income under the Code as in effect on the date of issuance of the Authority Revenue Bonds.

Section 5.14. Annual State Reports. The following requirements shall apply to the Bonds:
(A) Annual Reporting. Not later than October 30 of each calendar year, beginning with the October 30 first succeeding the date of the Bonds, and in each calendar year thereafter until the October 30 following the final maturity of the Bonds, the Finance Director shall prepare and supply the California Debt and Investment Advisory Commission, by mail, postage prepaid, with the information required under Section 53359.5(c) of the Act. The annual reporting shall be made using such form or forms as may be prescribed by CDIAC. (B) Other Reporting. If within 10 days prior to any Interest Payment Date it appears to the Fiscal Agent that there is a danger of deficiency in the Bond Fund and that the Fiscal Agent may be unable to pay regularly scheduled debt service on the Bonds in a timely manner or if the Fiscal Agent is unable to pay principal, interest and premium, if any, due on any Interest Payment Date for the Bonds due to insufficient funds in the Bond Fund, the Finance Director shall make the reports required under Section 4.02(D) hereof. (C) Amendment. The reporting requirements of this Section 5.14 shall be amended from time to time, without action by the City or the Fiscal Agent, to reflect any amendments to Section 53359.5(b) or Section 53359.5(c) of the Act.
(D) No Liability. None of the City and its officers, agents and employees, the Finance Director or the Fiscal Agent shall be liable for any inadvertent error in reporting the information required by this Section 5.14.

Section 5.15. Covenant to Foreclose. The City hereby covenants with and for the benefit of the Owners of the Bonds that it will annually on or before September 1 of each year review the public records of the County related to the collection of the Special Tax in order to determine the amount of the Special Tax collected in the prior Fiscal Year, and if the City determines on the basis of such review that:
(a) the amount so collected is deficient by more than 5% of the total amount of the Special Tax for Improvement Area No. 13 levied in such Fiscal Year, then the City will institute, prosecute and pursue such foreclosure proceedings against each parcel in Improvement Area No. 13 for which any installment of the Special Tax is delinquent in the time and manner provided below; or
Item 8.1
Mountain House Page 1065 of 1946 25 (b) the amount so collected is deficient by less than 5% of the total amount of the Special Tax for Improvement Area No. 13 levied in such Fiscal Year, but property owned by any single property owner is delinquent cumulatively by an amount equal to three installment payments with respect to the current and past Special Tax due, then the City will institute, prosecute and pursue such foreclosure proceedings against each such property owner in the time and manner provided below.

The Finance Director of the City shall within 60 days thereafter send or cause to be sent a written demand letter to the delinquent parcel(s) and lender of record, if any, as the first step in instituting foreclosure proceedings as authorized by the Mello-Roos Act in order to enforce the lien of the delinquent installment of the Special Tax on each such parcel, and shall thereafter diligently prosecute and pursue such foreclosure proceedings to judgment and sale in such manner and upon such timing as advised by legal counsel, taking into account the amounts delinquent, the estimate cost of legal proceedings, the status of Special Tax collections and available debt service reserves; provided, that the City shall not be obligated to commence proceedings against any delinquent parcels in any Fiscal Year in which the City has received or expects to receive one hundred percent (100%) of the amount of such installment from a so-called “Teeter Plan.”
Notwithstanding the foregoing, in certain instances the amount of a Special Tax delinquency on a particular parcel in relation to the cost of appropriate foreclosure proceedings may be such that the costs do not warrant the foreclosure proceedings costs. In such cases, foreclosure proceedings may be delayed by the City until there are sufficient Special Tax delinquencies accruing to such parcel (including interest and penalties thereon) to warrant the cost of such foreclosure proceedings.

Section 5.16. Continuing Disclosure to Owners. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate for the Authority Revenue Bonds. Notwithstanding any other provision of this Agreement, failure of the City to comply with the Continuing Disclosure Certificate shall not be considered a default hereunder; however, any Participating Underwriter or any holder or beneficial owner of the Authority Revenue Bonds may take such actions as may be necessary and appropriate to compel performance by the City of its obligations thereunder, including seeking mandate or specific performance by court order.

Section 5.17. Additional Bonds.
(a) In addition to the 2026 Bonds, the City may, by a Supplemental Fiscal Agent Agreement, authorize the issuance of one or more additional series of special tax bonds (the “Additional Bonds”), payable from Special Taxes and secured by the Special Tax Revenues equally and ratably with the 2026 Bonds, and the City may issue, and the Fiscal Agent may authenticate and deliver to the purchaser thereof, such Additional Bonds in the principal amount as shall be determined by the City, subject to the following specific conditions, which are hereby made conditions precedent to the issuance of any such Additional Bonds:
(i) No default in the Bonds Outstanding shall have occurred and then be continuing.

Item 8.1
Mountain House Page 1066 of 1946 26 (ii) The issuance of the Additional Bonds shall have been duly authorized by the City, and not exceed the maximum bonded indebtedness authorized for Improvement Area No. 13, which is $30,110,000.
(iii) There shall be deposited into the Reserve Fund, or separate reserve fund established for such Additional Bonds, an amount sufficient so that following issuance of the Additional Bonds, the amount therein shall equal the Reserve Requirement. The Supplemental Fiscal Agent Agreement pursuant to which the Additional Bonds are issued shall specify whether a parity reserve fund or a separate reserve fund is being established. (iv) For each Bond Year that the Additional Bonds will be Outstanding, projected net maximum Special Tax Revenues (maximum Special Taxes authorized to be levied, net of Priority Administrative Expenses) in each Fiscal Year are equal to or greater than 110% of Debt Service due in the Bond Year that begins in the corresponding Fiscal Year.
(v) After giving effect to the issuance of the Additional Bonds, the aggregate value of all parcels in Improvement Area No. 13 subject to the Special Tax, which value shall include the then existing improvements and any facilities to be constructed or acquired with the proceeds of the Additional Bonds, as determined by an MAI appraisal or the assessed value of such parcels as shown on the then current County tax roll, or by a combination of both methods, is at least 4.00 times the sum of (A) the aggregate principal amount of the Additional Bonds proposed to be issued and the Bonds then outstanding plus (B) the aggregate principal amount of any bonds then outstanding and payable from assessments which are a lien against property in Improvement Area No. 13, plus (C) a portion of the aggregate principal amount of all bonds issued under the MelloRoos Act then outstanding, and payable at least partially from special taxes to be levied on parcels of land subject to the Special Tax within Improvement Area No. 13 (the “Other Mello-Roos Bonds”) equal to the aggregate principal amount of the Other Mello-Roos Bonds multiplied by a fraction, the numerator of which is the amount of special taxes levied for the Other Mello-Roos Bonds on parcels of land within Improvement Area No. 13 subject to the Special Tax, and the denominator of which is the total amount of special taxes levied for the Other Mello-Roos Bonds on all parcels of land subject to the Special Tax within Improvement Area No. 13 against which the special taxes are levied to pay the Other Mello-Roos Bonds (such fraction to be determined based upon the special taxes which could be levied the year in which the change is to occur), based upon information from the most recent available fiscal year.
(b) Additional Bonds may be issued for the purpose of refunding any outstanding Bonds without meeting the foregoing clauses (a)(iv) and (a)(v), so long as debt service on the refunding Bonds in each Bond Year is less than debt service on the Bonds refunded. Additional Bonds issued for refunding purposes shall not count against the maximum bonded indebtedness authorized for Improvement Area No. 13.
(c) Nothing in this Fiscal Agent Agreement shall be interpreted to prohibit issuance of bonds, notes or obligations secured by the Special Tax Revenues on a subordinate basis to the Bonds or to prevent any Supplemental Fiscal Agent Agreement providing for the issuance of Additional Bonds from pledging or otherwise providing, in addition to the security given or intended to be given by this Fiscal Agent Agreement, additional security for the benefit of such Additional Bonds or any portion thereof.

Item 8.1
Mountain House Page 1067 of 1946 27 Section 5.18. Yield of the Bonds. In determining the yield of the Bonds to comply with Section 5.13 hereof, the City will take into account optional and mandatory prepayment redemption (including premium, if any) in advance of maturity based on the reasonable expectations of the City, as of the Closing, without regard to whether or not redemption moneys are received or Bonds are redeemed.

Item 8.1
Mountain House Page 1068 of 1946 28 ARTICLE VI
INVESTMENTS; DISPOSITION OF INVESTMENT PROCEEDS;

LIABILITY OF THE CITY
Section 6.01. Deposit and Investment of Moneys in Funds. Subject in all respects to the provisions of Section 6.02, moneys in any fund or account created or established by this Agreement and held by the Fiscal Agent, shall be invested by the Fiscal Agent in Permitted Investments, as directed pursuant to an Officer’s Certificate filed with the Fiscal Agent at least two (2) Business Days in advance of the making of such investments. In the absence of any such Officer’s Certificate, the Fiscal Agent shall invest any such moneys in Permitted Investments described in clause (vii) of the definition thereof which by their terms mature prior to the date on which such moneys are required to be paid out hereunder. Subject in all respects to the provisions of Section 6.02, moneys in any fund or account created or established by this Agreement and held by the Finance Director shall be invested by the Finance Director in any lawful investments that the City may make, which by their terms mature prior to the date on which such moneys are required to be paid out hereunder. Obligations purchased as an investment of moneys in any fund shall be deemed to be part of such fund or account, subject, however, to the requirements of this Agreement for transfer of interest earnings and profits resulting from investment of amounts in funds and accounts.

The Fiscal Agent or Finance Director may act as principal or agent in the acquisition or disposition of any investment. Neither the Fiscal Agent nor the Finance Director shall incur any liability for losses arising from any investments made pursuant to this Section. Any losses arising from any investments made pursuant to this Section shall be offset against interest earnings and profits retained in the same fund.

Except as otherwise provided in the next sentence, all investments of amounts deposited in any fund or account created by or pursuant to this Agreement, or otherwise containing gross proceeds of the Bonds (within the meaning of Section 148 of the Code), shall be acquired, disposed of, and valued (as of the date that valuation is required by this Agreement or the Code) at Fair Market Value. For purposes of any Fair Market Value determination hereunder, the Fiscal Agent shall be entitled to conclusively rely on an Officer’s Certificate of the City and shall be fully protected in relying thereon. Investments in funds or accounts (or portions thereof) that are subject to a yield restriction under applicable provisions of the Code (unless valuation is undertaken at least annually) shall be valued at their present value (within the meaning of Section 148 of the Code).

Investments in any and all funds and accounts may be commingled in a separate fund or funds for purposes of making, holding and disposing of investments, notwithstanding provisions herein for transfer to or holding in or to the credit of particular funds or accounts of amounts received or held by the Fiscal Agent or the Finance Director hereunder, provided that the Fiscal Agent or the Finance Director, as applicable, shall at all times account for such investments strictly in accordance with the funds and accounts to which they are credited and otherwise as provided in this Agreement.

The Fiscal Agent or the Finance Director, as applicable, shall sell or present for redemption, any investment security whenever it shall be necessary to provide moneys to meet any required payment, transfer, withdrawal or disbursement from the fund or account to which such investment security is credited and neither the Fiscal Agent nor the Finance Director shall Item 8.1
Mountain House Page 1069 of 1946 29 be liable or responsible for any loss resulting from the acquisition or disposition of such investment security in accordance herewith.

The City acknowledges that to the extent regulations of the Comptroller of the Currency or other applicable regulatory entity grant the City the right to receive brokerage confirmations of security transactions as they occur, the City specifically waives receipt of such confirmations to the extent permitted by law. The Fiscal Agent will furnish the City periodic cash transaction statements which include detail for all investment transactions made by the Fiscal Agent hereunder.

Section 6.02. Rebate of Excess Investment Earnings to the United States. The City covenants to calculate and rebate to the federal government, if and to the extent required in connection with the Authority Revenue Bonds, in accordance with the Regulations, excess investment earnings to the extent required by Section 148(f) of the Code.

In order to provide for the administration of this Section 6.02, the City may provide for the employment of independent attorneys, accountants and consultants compensated on such reasonable basis as the City may deem appropriate.

Section 6.03. Limited Obligation. The City’s obligations hereunder are limited obligations of the City on behalf of Improvement Area No. 13 of the District and are payable solely from and secured solely by the Special Tax Revenues and the amounts in the Special Tax Fund and the Bond Fund created hereunder.

Item 8.1
Mountain House Page 1070 of 1946 30 ARTICLE VII

THE FISCAL AGENT
Section 7.01. Appointment of Fiscal Agent. Computershare Trust Company, N.A., at its Principal Office, is hereby appointed Fiscal Agent for the Bonds. The Fiscal Agent undertakes to perform such duties, and only such duties, as are specifically set forth in this Agreement, and no implied covenants or obligations shall be read into this Agreement against the Fiscal Agent.

Any company into which the Fiscal Agent may be merged or converted or with which it may be consolidated or any company resulting from any merger, conversion or consolidation to which it shall be a party or any company to which the Fiscal Agent may sell or transfer all or substantially all of its corporate trust business, provided such company shall be eligible under the following paragraph of this Section, shall be the successor to such Fiscal Agent without the execution or filing of any paper or any further act, anything herein to the contrary notwithstanding.

The City may remove the Fiscal Agent initially appointed, and any successor thereto, and may appoint a successor or successors thereto, but any such successor shall be a bank or trust company having a combined capital (exclusive of borrowed capital) and surplus of at least $50,000,000, including, for such purpose, the combined capital and surplus of any parent holding company, and subject to supervision or examination by federal or state authority. If such bank or trust company publishes a report of condition at least annually, pursuant to law or to the requirements of any supervising or examining authority above referred to, then for the purposes of this Section 7.01, combined capital and surplus of such bank or trust company shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.

The Fiscal Agent may at any time resign by giving written notice to the City and by giving to the Owners notice by mail of such resignation. Upon receiving notice of such resignation, the City shall promptly appoint a successor Fiscal Agent by an instrument in writing. Any resignation or removal of the Fiscal Agent shall become effective upon acceptance of appointment by the successor Fiscal Agent.

If no appointment of a successor Fiscal Agent shall be made pursuant to the foregoing provisions of this Section within 30 days after the Fiscal Agent shall have given to the City written notice or after a vacancy in the office of the Fiscal Agent shall have occurred by reason of its inability to act, the Fiscal Agent or any Bondowner may apply to any court of competent jurisdiction to appoint a successor Fiscal Agent. Said court may thereupon, after such notice, if any, as such court may deem proper, appoint a successor Fiscal Agent.

Section 7.02. Liability of Fiscal Agent. The recitals of facts, covenants and agreements herein and in the Bonds contained shall be taken as statements, covenants and agreements of the City, and the Fiscal Agent assumes no responsibility for the correctness of the same, or makes any representations as to the validity or sufficiency of this Agreement or of the Bonds, or shall incur any responsibility in respect thereof, other than in connection with the duties or obligations herein or in the Bonds assigned to or imposed upon it. The Fiscal Agent shall not be liable in connection with the performance of its duties hereunder, except for its own negligence or willful default. The Fiscal Agent assumes no responsibility or liability for any information, statement or recital in any offering memorandum or other disclosure material prepared or distributed with respect to the issuance of the Bonds. The Fiscal Agent has no liability regarding the use of the proceeds from the purchase of the Bonds deposited in funds held by the City.

Item 8.1
Mountain House Page 1071 of 1946 31 In the absence of bad faith, the Fiscal Agent may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Fiscal Agent and conforming to the requirements of this Agreement, including all Officer’s Certificates of the City meeting such requirements; but in the case of any such certificates or opinions by which any provision hereof are specifically required to be furnished to the Fiscal Agent, the Fiscal Agent shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Agreement. Except as provided above in this paragraph, the Fiscal Agent shall be protected and shall incur no liability in acting or proceeding, or in not acting or not proceeding, in good faith, reasonably and in accordance with the terms of this Agreement, upon any resolution, order, notice, request, consent or waiver, certificate, statement, affidavit, or other paper or document which it shall in good faith reasonably believe to be genuine and to have been adopted or signed by the proper person or to have been prepared and furnished pursuant to any provision of this Agreement, and the Fiscal Agent shall not be under any duty to make any investigation or inquiry as to any statements contained or matters referred to in any such instrument.

The Fiscal Agent shall not be liable for any error of judgment made in good faith by a responsible officer unless it shall be proved that the Fiscal Agent was negligent in ascertaining the pertinent facts.

No provision of this Agreement shall require the Fiscal Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

The Fiscal Agent shall be under no obligation to exercise any of the rights or powers vested in it by this Agreement at the request or direction of any of the Owners pursuant to this Agreement unless such Owners shall have offered to the Fiscal Agent reasonable security or indemnity against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.

The Fiscal Agent may become the owner of the Bonds with the same rights it would have if it were not the Fiscal Agent.

Section 7.03. Information. The Fiscal Agent shall provide to the City such information relating to the Bonds and the funds and accounts maintained by the Fiscal Agent hereunder as the City shall reasonably request, including but not limited to quarterly statements reporting funds held and transactions by the Fiscal Agent.

Section 7.04. Notice to Fiscal Agent. The Fiscal Agent may rely and shall be protected in acting or refraining from acting upon any Officer’s Certificate, notice, resolution, request, consent, order, certificate, report, warrant, Bond or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or proper parties and given in accordance with the requirements hereof. The Fiscal Agent may execute any of the powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Fiscal Agent shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder. The Fiscal Agent may consult with counsel, who may be counsel to the City, with regard to legal questions, and the opinion of such Item 8.1
Mountain House Page 1072 of 1946 32 counsel shall be full and complete authorization and protection in respect of any action taken or suffered by it hereunder in good faith and in accordance therewith.

The Fiscal Agent shall not be bound to recognize any person as the Owner of a Bond unless and until such Bond is submitted for inspection, if required, and his title thereto satisfactorily established, if disputed.

Whenever in the administration of its duties under this Agreement the Fiscal Agent shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of willful misconduct on the part of the Fiscal Agent, be deemed to be conclusively proved and established by a certificate of the City, and such certificate shall be full warrant to the Fiscal Agent for any action taken or suffered under the provisions of this Agreement or any Supplemental Agreement upon the faith thereof, but in its discretion the Fiscal Agent may, in lieu thereof, accept other evidence of such matter or may require such additional evidence as to it may seem reasonable.

Section 7.05. Compensation, Indemnification. The City shall pay to the Fiscal Agent, but only from Special Tax Revenues, from time to time reasonable compensation for all services rendered as Fiscal Agent under this Agreement, and also all reasonable expenses, charges, counsel fees and other disbursements, including those of their attorneys, agents and employees, incurred in and about the performance of their powers and duties under this Agreement, but the Fiscal Agent shall not have a lien therefor on any funds at any time held by it under this Agreement. The City further agrees, to the extent permitted by applicable law, and only from Special Tax Revenues as the source of funds, to indemnify and save the Fiscal Agent, its officers, employees, directors and agents harmless against any costs, claims, expenses or liabilities, including, without limitation, fees and expenses of its attorneys which it may incur in the exercise and performance of its powers and duties hereunder which are not due to its negligence or willful misconduct. The obligation of the City under this Section shall survive resignation or removal of the Fiscal Agent under this Agreement and payment of the Bonds and discharge of this Agreement.

Item 8.1
Mountain House Page 1073 of 1946 33 ARTICLE VIII

MODIFICATION OR AMENDMENT OF THIS AGREEMENT
Section 8.01. Amendments Permitted. This Agreement and the rights and obligations of the City and of the Owners of the Bonds may be modified or amended at any time by a Supplemental Agreement pursuant to the affirmative vote at a meeting of Owners, or with the written consent without a meeting, of the Owners of at least 60% in aggregate principal amount of the Bonds then Outstanding, exclusive of Bonds disqualified as provided in Section 8.04. No such modification or amendment shall (i) extend the maturity of any Bond or reduce the interest rate thereon, or otherwise alter or impair the obligation of the City to pay the principal of, and the interest and any premium on, any Bond, without the express consent of the Owner of such Bond, or (ii) permit the creation by the City of any pledge or lien upon the Special Taxes superior to or on a parity with the pledge and lien created for the benefit of the Bonds (except as otherwise permitted by the Act, the laws of the State of California or this Agreement), or reduce the percentage of Bonds required for the amendment hereof. No such amendment may modify any of the rights or obligations of the Fiscal Agent without its written consent.

This Agreement and the rights and obligations of the City and of the Owners may also be modified or amended at any time by a Supplemental Agreement, without the consent of any Owners, only to the extent permitted by law and only for any one or more of the following purposes:
(A) to add to the covenants and agreements of the City in this Agreement contained, other covenants and agreements thereafter to be observed, or to limit or surrender any right or power herein reserved to or conferred upon the City; (B) to make modifications not adversely affecting any outstanding series of Bonds of the City in any material respect;
(C) to make such provisions for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained in this Agreement, or in regard to questions arising under this Agreement, as the City and the Fiscal Agent may deem necessary or desirable, and which shall not adversely affect the rights of the Owners of the Bonds; or
(D) to make such additions, deletions or modifications as may be necessary or desirable to assure compliance with Section 148 of the Code relating to required rebate of excess investment earnings to the United States or otherwise as may be necessary to assure exclusion from gross income for federal income tax purposes of interest on the Bonds or to conform with the Regulations; (E) to facilitate the issuance of Additional Bonds, to the extent permitted by Section 5.17.

Section 8.02. Owners’ Meetings. The City may at any time call a meeting of the Owners.

In such event the City is authorized to fix the time and place of said meeting and to provide for the giving of notice thereof and to fix and adopt rules and regulations for the conduct of said meeting.

Item 8.1
Mountain House Page 1074 of 1946 34 Section 8.03. Procedure for Amendment with Written Consent of Owners. The City and the Fiscal Agent may at any time enter into a Supplemental Agreement amending the provisions of the Bonds or of this Agreement or any Supplemental Agreement, to the extent that such amendment is permitted by Section 8.01, to take effect when and as provided in this Section. A copy of such Supplemental Agreement, together with a request to Owners for their consent thereto, if such consent is required under Section 8.01, shall be mailed by first class mail, by the Fiscal Agent to each Owner of Bonds Outstanding, but failure to mail copies of such Supplemental Agreement and request shall not affect the validity of the Supplemental Agreement when assented to as in this Section provided.

If consent of the Owners is required under Section 8.01, such Supplemental Agreement shall not become effective unless there shall be filed with the Fiscal Agent the written consents of the Owners of at least 60% in aggregate principal amount of the Bonds then Outstanding (exclusive of Bonds disqualified as provided in Section 8.04) and a notice shall have been mailed as hereinafter in this Section provided. Each such consent shall be effective only if accompanied by proof of ownership of the Bonds for which such consent is given, which proof shall be such as is permitted by Section 9.04. Any such consent shall be binding upon the Owner of the Bonds giving such consent and on any subsequent Owner (whether or not such subsequent Owner has notice thereof) unless such consent is revoked in writing by the Owner giving such consent or a subsequent Owner by filing such revocation with the Fiscal Agent prior to the date when the notice hereinafter in this Section provided for has been mailed.

After the Owners of the required percentage of Bonds shall have filed their consents to the Supplemental Agreement, the City shall mail a notice to the Owners in the manner hereinbefore provided in this Section for the mailing of the Supplemental Agreement, stating in substance that the Supplemental Agreement has been consented to by the Owners of the required percentage of Bonds and will be effective as provided in this Section (but failure to mail copies of said notice shall not affect the validity of the Supplemental Agreement or consents thereto). Proof of the mailing of such notice shall be filed with the Fiscal Agent. A record, consisting of the papers required by this Section 8.03 to be filed with the Fiscal Agent, shall be proof of the matters therein stated until the contrary is proved. The Supplemental Agreement shall become effective upon the filing with the Fiscal Agent of the proof of mailing of such notice, and the Supplemental Agreement shall be deemed conclusively binding (except as otherwise herein above specifically provided in this Article) upon the City and the Owners of all Bonds at the expiration of 60 days after such filing, except in the event of a final decree of a court of competent jurisdiction setting aside such consent in a legal action or equitable proceeding for such purpose commenced within such 60-day period.

Section 8.04. Disqualified Bonds. Bonds owned or held for the account of the City, excepting any pension or retirement fund, shall not be deemed Outstanding for the purpose of any vote, consent or other action or any calculation of Outstanding Bonds provided for in this Article VIII, and shall not be entitled to vote upon, consent to, or take any other action provided for in this Article VIII. Upon request, the City shall provide an Officer’s Certificate to the Fiscal Agent listing those Bonds which are disqualified pursuant to this Section 8.04.

Section 8.05. Effect of Supplemental Agreement. From and after the time any Supplemental Agreement becomes effective pursuant to this Article VIII, this Agreement shall be deemed to be modified and amended in accordance therewith, the respective rights, duties and obligations under this Agreement of the City and all Owners of Bonds Outstanding shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such Supplemental Item 8.1
Mountain House Page 1075 of 1946 35 Agreement shall be deemed to be part of the terms and conditions of this Agreement for any and all purposes.

Section 8.06. Endorsement or Replacement of Bonds Issued After Amendments. The City may determine that Bonds issued and delivered after the effective date of any action taken as provided in this Article VIII shall bear a notation, by endorsement or otherwise, in form approved by the City, as to such action. In that case, upon demand of the Owner of any Bond Outstanding at such effective date and presentation of his Bond for that purpose at the Principal Office of the Fiscal Agent or at such other office as the City may select and designate for that purpose, a suitable notation shall be made on such Bond. The City may determine that new Bonds, so modified as in the opinion of the City is necessary to conform to such Owners’ action, shall be prepared, executed and delivered. In that case, upon demand of the Owner of any Bonds then Outstanding, such new Bonds shall be exchanged at the Principal Office of the Fiscal Agent without cost to any Owner, for Bonds then Outstanding, upon surrender of such Bonds.

Section 8.07. Amendatory Endorsement of Bonds. The provisions of this Article VIII shall not prevent any Owner from accepting any amendment as to the particular Bonds held by him, provided that due notation thereof is made on such Bonds.

Section 8.08. Opinion of Counsel Regarding Supplemental Agreement. The Fiscal Agent shall be furnished an opinion of counsel that any Supplemental Agreement entered into by the City and the Fiscal Agent complies with the provisions of this Article VIII, and the Fiscal Agent may conclusively rely upon such opinion.

Item 8.1
Mountain House Page 1076 of 1946 36 ARTICLE IX

MISCELLANEOUS
Section 9.01. Benefits of Agreement Limited to Parties. Nothing in this Agreement expressed or implied, is intended to give to any person other than the City, the Fiscal Agent and the Owners, any right, remedy, claim under or by reason of this Agreement. Any covenants, stipulations, promises or agreements in this Agreement contained by and on behalf of the City shall be for the sole and exclusive benefit of the Owners and the Fiscal Agent.

Section 9.02. Successor is Deemed Included in All References to Predecessor.

Whenever in this Agreement or any Supplemental Agreement either the City or the Fiscal Agent is named or referred to, such reference shall be deemed to include the successors or assigns thereof, and all the covenants and agreements in this Agreement contained by or on behalf of the City or the Fiscal Agent shall bind and inure to the benefit of the respective successors and assigns thereof whether so expressed or not.

Section 9.03. Discharge of Agreement. If the City shall pay and discharge the entire indebtedness on all or any portion of the Bonds Outstanding in any one or more of the following ways:
(A) by well and truly paying or causing to be paid the principal of, and interest and any premium on, such Bonds Outstanding, as and when the same become due and payable;
(B) by depositing with the Fiscal Agent or other fiduciary, at or before maturity, money which, together with (in the event that all of the Bonds are to be defeased) the amounts then on deposit in the funds and accounts provided for in Sections 4.02 and

4.03, is fully sufficient to pay such Bonds Outstanding, including all principal, interest and redemption premiums; or
(C) by irrevocably depositing with the Fiscal Agent or other fiduciary, cash and Federal Securities in such amount as the City shall determine as confirmed by an independent certified public accountant will, together with the interest to accrue thereon and (in the event that all of the Bonds are to be defeased) moneys then on deposit in the fund and accounts provided for in Sections 4.02 and 4.03, be fully sufficient to pay and discharge the indebtedness on such Bonds (including all principal, interest and redemption premiums) at or before their respective maturity dates; and if such Bonds are to be redeemed prior to the maturity thereof notice of such redemption shall have been given as in this Agreement provided or provision satisfactory to the Fiscal Agent shall have been made for the giving of such notice, then, at the election of the City, and notwithstanding that any Bonds shall not have been surrendered for payment, the pledge of the Special Taxes and other funds provided for in this Agreement and all other obligations of the City under this Agreement with respect to such Bonds Outstanding shall cease and terminate, except only the obligations of the City under Section 5.13 and to pay or cause to be paid to the Owners of the Bonds not so surrendered and paid all sums due thereon and all amounts owing to the Fiscal Agent pursuant to Section 7.05; and thereafter Special Taxes shall not be payable to the Fiscal Agent. Notice of such election shall be filed with the Fiscal Agent.

Item 8.1
Mountain House Page 1077 of 1946 37 Any funds thereafter held by the Fiscal Agent upon payments of all fees and expenses of the Fiscal Agent, which are not required for said purpose, shall be paid over to the City.

Section 9.04. Execution of Documents and Proof of Ownership by Owners. Any request, declaration or other instrument which this Agreement may require or permit to be executed by Owners may be in one or more instruments of similar tenor, and shall be executed by Owners in person or by their attorneys appointed in writing.

Except as otherwise herein expressly provided, the fact and date of the execution by any Owner or his attorney of such request, consent, declaration or other instrument, or of such writing appointing such attorney, may be proved by the certificate of any notary public or other officer authorized to take acknowledgments of deeds to be recorded in the state in which he purports to act, that the person signing such request, declaration or other instrument or writing acknowledged to him the execution thereof, or by an affidavit of a witness of such execution, duly sworn to before such notary public or other officer.

Except as otherwise herein expressly provided, the ownership of registered Bonds and the amount, maturity, number and date of holding the same shall be proved by the registry books.

Any request, consent, declaration or other instrument or writing of the Owner of any Bond shall bind all future Owners of such Bond in respect of anything done or suffered to be done by the City or the Fiscal Agent in good faith and in accordance therewith.

Section 9.05. Waiver of Personal Liability. No member, officer, agent or employee of the City shall be individually or personally liable for the payment of the principal of, or interest or any premium on, the Bonds; but nothing herein contained shall relieve any such member, officer, agent or employee from the performance of any official duty provided by law.

Section 9.06. Notices to and Demands on City and Fiscal Agent. Any notice or demand which by any provision of this Agreement is required or permitted to be given or served by the Fiscal Agent to or on the City may be given or served by being deposited postage prepaid in a post office letter box, by overnight courier or by facsimile (with receipt confirmed by telephone) addressed (until another address is filed by the City with the Fiscal Agent) as follows:

City of Mountain House
Attention: Finance Director
251 E Main Street
Mountain House, California 95391
Any notice or demand which by any provision of this Agreement is required or permitted to be given or served by the City to or on the Fiscal Agent may be given or served by being deposited postage prepaid in a post office letter box, by overnight courier or by facsimile (with receipt confirmed by telephone) addressed (until another address is filed by the Fiscal Agent with the City) as follows:

Item 8.1
Mountain House Page 1078 of 1946 38 Computershare Trust Company, N.A.

Attention: Corporate Trust
1505 Energy Park Drive
St. Paul, Minnesota 55108
Section 9.07. Partial Invalidity. If any Section, paragraph, sentence, clause or phrase of this Agreement shall for any reason be held illegal or unenforceable, such holding shall not affect the validity of the remaining portions of this Agreement. The City hereby declares that it would have adopted this Agreement and each and every other Section, paragraph, sentence, clause or phrase hereof and authorized the issue of the Bonds pursuant thereto irrespective of the fact that any one or more Sections, paragraphs, sentences, clauses, or phrases of this Agreement may be held illegal, invalid or unenforceable.

Section 9.08. Unclaimed Moneys. Anything contained herein to the contrary notwithstanding, any moneys held by the Fiscal Agent in trust for the payment and discharge of the principal of, and the interest and any premium on, the Bonds which remains unclaimed for two (2) years after the date when the payments of such principal, interest and premium have become payable, if such moneys was held by the Fiscal Agent at such date, shall be repaid by the Fiscal Agent to the City as its absolute property free from any trust, and the Fiscal Agent shall thereupon be released and discharged with respect thereto and the Bond Owners shall look only to the City for the payment of the principal of, and interest and any premium on, such Bonds.

Section 9.09. Applicable Law. This Agreement shall be governed by and enforced in accordance with the laws of the State of California applicable to contracts made and performed in the State of California.

Section 9.10. Conflict with Act. In the event of a conflict between any provision of this Agreement with any provision of the Act as in effect on the Closing Date, the provision of the Act shall prevail over the conflicting provision of this Agreement.

Section 9.11. Conclusive Evidence of Regularity. Bonds issued pursuant to this Agreement shall constitute conclusive evidence of the regularity of all proceedings under the Act relative to their issuance and the levy of the Special Taxes.

Section 9.12. Payment on Business Day. In any case where the date of the maturity of interest or of principal (and premium, if any) of the Bonds or the date fixed for redemption of any Bonds or the date any action is to be taken pursuant to this Agreement is other than a Business Day, the payment of interest or principal (and premium, if any) or the action need not be made on such date but may be made on the next succeeding day which is a Business Day with the same force and effect as if made on the date required and no interest shall accrue for the period from and after such date.

Section 9.13. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original. The exchange of copies of this Agreement and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Agreement as to the parties hereto and may be used in lieu of the original Agreement and signature pages for all purposes.

Section 9.14. U.S.A. Patriot Act. The City and the District acknowledge that in accordance with Section 326 of the U.S.A. Patriot Act, the Fiscal Agent, like all financial Item 8.1
Mountain House Page 1079 of 1946 39 institutions and in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Fiscal Agent. The City and the District agree that they will provide the Fiscal Agent with such information as it may request in order for the Fiscal Agent to satisfy the requirements of the U.S.A. Patriot Act.
[Signature Page Follows]
Item 8.1
Mountain House Page 1080 of 1946 [Signature page to Fiscal Agent Agreement dated as of _____________ 1, 2026] IN WITNESS WHEREOF, the City has caused this Agreement to be executed in its name and the Fiscal Agent has caused this Agreement to be executed in its name, all as of _____________ 1, 2026.

CITY OF MOUNTAIN HOUSE, for itself and on
behalf of its MOUNTAIN HOUSE COMMUNITY
FACILITIES DISTRICT NO. 2024-1 (PUBLIC

FACILITIES AND SERVICES)
By:

City Manager
COMPUTERSHARE TRUST COMPANY, N.A.,
as Fiscal Agent
By:

Authorized Officer
Item 8.1
Mountain House Page 1081 of 1946 A-1

EXHIBIT A

FORM OF BOND

UNITED STATES OF AMERICA

STATE OF CALIFORNIA
No. ___ ***$__________***
IMPROVEMENT AREA NO. 9 OF

CITY OF MOUNTAIN HOUSE
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC FACILITIES AND SERVICES)
SPECIAL TAX BONDS SERIES 2026
INTEREST RATE: MATURITY DATE: BOND DATE: CUSIP:
% September 1, 20__ ______________ 1,
2026
N/A
REGISTERED OWNER: COMPUTERSHARE TRUST COMPANY, N.A., as assignee the Mountain House Financing Authority
PRINCIPAL AMOUNT: ***______________ DOLLARS***
The City of Mountain House (the “City”) for and on behalf of its City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) (the “District”) for Improvement Area No. 13 of the District, for value received, hereby promises to pay solely from the Special Tax (as hereinafter defined) or amounts in certain funds and accounts held under the Agreement (as hereinafter defined), to the Registered Owner named above, or registered assigns (the “Owner”), on the Maturity Date set forth above, unless redeemed prior thereto as hereinafter provided, the Principal Amount set forth above, and to pay interest on such principal amount from the Bond Date shown above, or from the most recent Interest Payment Date (as hereinafter defined) to which interest has been paid or duly provided for, semiannually on March 1 and September 1, commencing March 1, 2027 (the “Interest Payment Dates”), at the Interest Rate set forth above, until the principal amount hereof is paid or made available for payment. The principal of this Bond is payable to the Owner hereof in lawful money of the United States of America upon presentation and surrender of this Bond at the principal corporate trust office of Computershare Trust Company, N.A. in St. Paul, Minnesota (the “Fiscal Agent”). Interest on this Bond shall be paid by check of the Fiscal Agent mailed by first class mail on each Interest Payment Date to the Owner hereof as of the close of business on the 15th day of the month preceding the month in which the Interest Payment Date occurs (the “Record Date”) at such Owner’s address as it appears on the registration books maintained by the Fiscal Agent, or by wire transfer made on such Interest Payment Date upon written instructions delivered to the Fiscal Agent by the applicable Record Date of any Owner of $1,000,000 or more in aggregate principal amount of Bonds.

Item 8.1
Mountain House Page 1082 of 1946 A-2
This Bond is one of a duly authorized issue of “Improvement Area No. 13 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) Special Tax Bonds, Series 2026” (the “Bonds”) issued in the aggregate principal amount of $____________ pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Sections 53311, et seq., of the California Government Code (the “Act”) for the purpose of financing certain public improvements and paying certain costs related to the issuance of the Bonds. The issuance of the Bonds and the terms and conditions thereof are provided for by a resolution adopted by the City Council of the City acting in its capacity as the legislative body of the District on March 25, 2026 and a Fiscal Agent Agreement dated as of _____________ 1, 2026 (the “Fiscal Agent Agreement”), and this reference incorporates the Fiscal Agent Agreement herein, and by acceptance the Registered Owner of this Bond assents to said terms and conditions. The Fiscal Agent Agreement is adopted under and this Bond is issued under, and both are to be construed in accordance with, the laws of the State of California.

Pursuant to the Mello-Roos Act, the Agreement and the Resolution, the principal of and interest on this Bond are payable solely from the “Special Tax Revenues,” being the proceeds of the facilities special taxes annually received by the City for Improvement Area No. 13 of the District (the “Special Taxes”), excluding any interest and penalties thereon collected in connection with delinquent Special Taxes, less an amount equal to the Administrative Expense Priority, including all scheduled payments and delinquent payments thereof, and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes, and certain funds held under the Agreement.

Interest on this Bond shall be payable from the Interest Payment Date next preceding the date of authentication hereof, unless (i) it is authenticated on an Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or (ii) such date of authentication is after a Record Date but on or prior to an Interest Payment Date, in which event interest will be payable from such Interest Payment Date, or (iii) such date of authentication is prior to the first Record Date, in which event interest will be payable from the Bond Date shown above; provided however, that if at the time of authentication of this Bond, interest is in default hereon, this Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment hereon.

Any tax for the payment hereof shall be limited to the Special Tax, except to the extent that provision for payment has been made by the City as may be permitted by law. The Bonds do not constitute obligations of the City for which the City is obligated to levy or pledge, or has levied or pledged, general or special taxation other than described herein above.

The Bonds maturing on and after September 1, ____ are subject to optional redemption from any source of available funds (other than prepayments of the Special Tax by property owners), in whole or in part among maturities as specified by the City and by lot within a maturity, on any date on and after September 1, ____ at the following respective redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed), plus accrued interest thereon to the date of redemption:

Item 8.1
Mountain House Page 1083 of 1946 A-3
Redemption Dates
Redemption
Price
September 1, _____ through August 31, _____ 103%
September 1, _____ through August 31, _____ 102
September 1, _____ through August 31, _____ 101
September 1, _____ and any date thereafter 100
The Bonds are subject to mandatory redemption from prepayments of the Special Tax by property owners, in whole or in part among maturities as shall be specified by the City and by lot within a maturity, on any Interest Payment Date at the following respective redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed), plus accrued interest thereon to the date of redemption:

Redemption Dates
Redemption
Price
Interest Payment Dates through March 1, _____ 103%
September 1, _____ and March 1, _____ 102
September 1, _____ and March 1, _____ 101
September 1, _____ and thereafter 100
Notice of redemption with respect to the Bonds to be redeemed shall be given to the Owners thereof, in the manner, to the extent and subject to the provisions of the Agreement.

This Bond shall be registered in the name of the Owner hereof, as to both principal and interest. Each registration and transfer of registration of this Bond shall be entered by the Fiscal Agent in books kept by it for this purpose and authenticated by its manual signature upon the certificate of authentication endorsed hereon.

No transfer or exchange hereof shall be valid for any purpose unless made by the registered owner, by execution of the form of assignment endorsed hereon, and authenticated as herein provided, and the principal hereof, interest hereon and any redemption premium shall be payable only to the registered owner or to such Owner’s order. The Fiscal Agent shall require the Owner requesting transfer or exchange to pay any tax or other governmental charge required to be paid with respect to such transfer or exchange. No transfer or exchange hereof shall be required to be made (i) within 15 days prior to the date established by the Fiscal Agent for selection of Bonds for redemption or (ii) with respect to a Bond after such Bond has been selected for redemption.

The Agreement and the rights and obligations of the City thereunder may be modified or amended as set forth therein. The principal of the Bonds is not subject to acceleration upon a default under the Agreement or any other document.

This Bond shall not become valid or obligatory for any purpose until the certificate of authentication hereon endorsed shall have been dated and manually signed by the Fiscal Agent.

It is hereby certified, recited and declared that all acts, conditions and things required by law to exist, happen and be performed precedent to and in the issuance of this Bond have existed, happened and been performed in due time, form and manner as required by law, and that the amount of this Bond, together with all other indebtedness of the City, does not exceed any debt limit prescribed by the laws or Constitution of the State of California.

Item 8.1
Mountain House Page 1084 of 1946 A-4
Item 8.1
Mountain House Page 1085 of 1946 A-5
IN WITNESS WHEREOF, the City of Mountain House has caused this Bond to be executed in its name by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of its City Clerk.

CITY OF MOUNTAIN HOUSE
By:

Mayor
Attested:

By:

City Clerk
FISCAL AGENT’S CERTIFICATE OF AUTHENTICATION
This is one of the Bonds described in the Resolution and the Agreement.

Dated: _____________, 2026
COMPUTERSHARE TRUST COMPANY, N.A.,
as Fiscal Agent
By:

Authorized Officer
Item 8.1
Mountain House Page 1086 of 1946 A-6

FORM OF ASSIGNMENT
FOR VALUE RECEIVED, the undersigned do(es) hereby sell, assign and transfer unto (Name, address and Tax Identification Number of Assignee) the within-mentioned registered Bond and hereby irrevocably constitute(s) and appoint(s) attorney,
to transfer the same on the registration books of the Fiscal Agent with full power of substitution in the premises.

Dated: ________________
Signature Guaranteed:

NOTE: Signature(s) must be guaranteed by an eligible
guarantor institution with membership in an approved
signature guarantee medallion program pursuant to
Securities and Exchange Commission Rule 17A(d)15.

NOTE: The signature(s) on this Assignment must
correspond with the name(s) as written on the face
of the within Bond in every particular without
alteration or enlargement or any change whatsoever.

Item 8.1
Mountain House Page 1087 of 1946 Jones Hall Draft 8.14.26

LOCAL OBLIGATIONS PURCHASE AGREEMENT
$_________
Improvement Area No. 8 of
City of Mountain House
Community Facilities District No. 2024-1
(Public Facilities and Services)
Special Tax Bonds Series 2026
$_________
Improvement Area No. 13 of
City of Mountain House
Community Facilities District No. 2024-1
(Public Facilities and Services)
Special Tax Bonds Series 2026

1. This LOCAL OBLIGATIONS PURCHASE AGREEMENT (this “Purchase Agreement”), dated as of ____________ 1, 2026, is by and between the Mountain House Financing Authority (the “Authority”), a joint powers authority organized and existing under the laws of the State of California, and the City of Mountain House (the “City”), a general law city and municipal corporation organized and existing under and by virtue of the Constitution and laws of the State of California, for and on behalf of its Community Facilities District 2024-1 (Public Facilities and Services) (the “District”) located within the City and the following improvement areas therein (collectively, the “Improvement Areas”):
(i) Improvement Area No. 8 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services);
(ii) Improvement Area No. 13 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services).

BACKGROUND:

WHEREAS, the Authority is a joint exercise of powers authority duly organized and existing under the provisions of Articles 1 through 4 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the “Act”), and is authorized pursuant to Article 4 of the Act (the “Bond Law”) to borrow money for the purpose of financing the acquisition of bonds, notes and other obligations to provide financing or refinancing for public capital improvements of local agencies within the State of California; and WHEREAS, the City is issuing the following Special Tax Bonds (the “Local Obligations”) for each Improvement Area for the purpose of financing authorized improvements:
(i) “Improvement Area No. 8 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) Special Tax Bonds, in the principal amount of $__________; and
(ii) Improvement Area No. 13 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) Special Tax Bonds, in the principal amount of $__________; and
WHEREAS, the Authority has authorized the issuance of its Special Tax Revenue Bonds, Series 2026 in the aggregate principal amount of $__________ (the “Authority Bonds”), Item 8.1
Mountain House Page 1088 of 1946 -2-
pursuant to an Indenture of Trust, dated as of ____________ 1, 2026 (the “Indenture”), by and between the Authority and Computershare Trust Company, N.A., as trustee (the “Trustee”), for the purpose of providing the funds required to acquire the Local Obligations; and WHEREAS, the Authority and the City desire to enter into this Purchase Agreement providing for the sale of the Local Obligations by the City to the Authority, and the purchase thereof by the Authority, and containing the other agreements herein set forth.

NOW, THEREFORE, in consideration of the mutual agreements herein contained, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Authority and the City agree as follows:

AGREEMENT:

1. Upon the terms and conditions and upon the basis of the representations, warranties and agreements hereinafter set forth, the City hereby commits to sell to the Authority and does hereby sell to the Authority, and the Authority hereby commits to purchase from the City and does hereby purchase from the City, with the proceeds of the Authority Bonds, all of the Local Obligations. The Local Obligations will bear the annual interest rates and mature at the times set forth in Exhibit A attached hereto and hereby made a part hereof. The purchase price of the Local Obligations is set forth below.

2. All terms not herein defined will have the meanings given such terms in the Indenture authorizing the issuance of the Authority Bonds.

3. The City confirms that there are no substantial conditions precedent to the issuance by the City and to the sale (as provided herein) and the delivery to the Authority of the Local Obligations.

4. The parties hereto hereby specify _________, 2026, as the date of closing of the purchase of the Local Obligations hereunder (the “Closing Date”). The Local Obligations will be registered in the name of the Trustee, as assignee of the Authority. On the Closing Date, the City will issue and deliver the Local Obligations to the Trustee upon payment by the Trustee of the purchase price of the Local Obligations in the aggregate amount of $________, calculated as the $________ aggregate principal amount of Local Obligations, plus a net original issue premium of $________, less allocable shares of the costs related to Underwriter’s discount, capitalized interest, reserve fund deposit and costs of issuance, in each case as paid by the Authority in connection with the Authority Bonds. Said purchase price will be paid from the proceeds of sale of the Authority Bonds, and will be paid by the Trustee from the Purchase Fund established under the Indenture.

5. The Local Obligations will be as described in the Official Statement dated as of the date hereof, relating to the Authority Bonds (the “Official Statement”) and will be issued and secured under the provisions of the resolution adopted by the City on ________, 2026 (the “Resolution”) and a Fiscal Agent Agreement dated as of ____________ 1, 2026 for each Improvement Area (each a “Fiscal Agent Agreement”), by and between the City and Computershare Trust Company, N.A., as fiscal agent. The Local Obligations and interest thereon will be payable from Special Taxes levied and collected in accordance with the Resolution and the applicable Fiscal Agent Agreement.

Item 8.1
Mountain House Page 1089 of 1946 -3-

6. Any action under this Purchase Agreement taken by the Authority, including payment for and acceptance of the Local Obligations, and delivery and execution of any receipt for the Local Obligations and any other instruments in connection with the closing on the Closing Date, will be valid and sufficient for all purposes and binding upon the Authority, provided that any such action will not impose any obligation or liability upon the Authority other than as may arise as expressly set forth in this Purchase Agreement.

7. It is a condition to the City’s sale and delivery of the Local Obligations to the Authority, and to the Authority’s purchase of the Local Obligations and the obligations of the Authority to accept delivery of and to pay for the Local Obligations, that the entire aggregate principal amount of the Local Obligations authorized by the Resolution and the Fiscal Agent Agreement will be delivered by the City, and accepted and paid for by the Authority, on the Closing Date.

8. The City has furnished some, but not all, of the information contained in the Official Statement and hereby authorizes the use of that information by the Authority in connection with the public offering and sale of the Authority Bonds.

9. The City represents and warrants to the Authority that:
(a) The City is a general law city and municipal corporation organized and existing under the Constitution and laws of the State of California, and has, and on the Closing Date will have, full legal right, power and authority (i) to enter into this Purchase Agreement, the Continuing Disclosure Certificate relating to the Authority Bonds and the Local Obligations (the “Continuing Disclosure Certificate”) and the Fiscal Agent Agreement (collectively, the “City Documents”), (ii) to adopt the Resolution, (iii) to issue, sell and deliver the Local Obligations to the Authority as provided herein, and (iv) to carry out and consummate the transactions contemplated by the Resolution, the City Documents and the Official Statement;
(b) By all necessary official action of the City, the City has duly authorized and approved the execution and delivery of, and the performance by the City of the obligations contained in, the City Documents and as of the date hereof, such authorizations and approvals are in full force and effect and have not been amended, modified or rescinded. When executed and delivered, the City Documents will constitute the legally valid and binding obligations of the City enforceable in accordance with their respective terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles relating to or affecting creditors’ rights generally;
(c) The City has complied, and will at the Closing be in compliance in all respects, with the terms of the City Documents;
(d) The execution and delivery of City Documents and the Local Obligations, the adoption of the Resolution and compliance with the provisions of each thereof, and the carrying out and consummation of the transactions contemplated by the Official Statement, will not conflict with or constitute a breach of or a default under any applicable law or administrative regulation of the State of California or the United States, or any applicable judgment, decree, agreement or other instrument to which the City is a party or is otherwise subject;
Item 8.1
Mountain House Page 1090 of 1946 -4-
(e) To the knowledge of the City, at the time of the City’s acceptance hereof and at all times subsequent thereto up to and including the Closing Date, with respect to information describing the City, the District, the City Documents and the Resolution and other resolutions relating to the District, the Official Statement does not and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (f) Except as may be described in the Official Statement, there is no action, suit, proceeding or investigation before or by any court, public board or body pending or, to the knowledge of the City, threatened, wherein an unfavorable decision, ruling or finding would: (i) affect the creation, organization, existence or powers of the City or the titles of its members and officers to their respective offices, (ii) enjoin or restrain the issuance, sale and delivery of the Local Obligations, the levy and receipt of the Special Taxes which secure the Local Obligations, or the pledge thereof, (iii) in any way question or affect any of the rights, powers, duties or obligations of the City with respect to the moneys pledged or to be pledged to pay the principal of, premium, if any, or interest on the Local Obligations, (iv) in any way question or affect any authority for the issuance of the Local Obligations, or the validity or enforceability of the Local Obligations, the Resolution or the City Documents, or (v) in any way question or affect the City Documents or the transactions contemplated by the City Documents, the Official Statement, the Resolution, the other documents referred to in the Official Statement, or any other agreement or instrument to which the City is a party relating to the Local Obligations;
(g) The City will furnish such information, execute such instruments and take such other action in cooperation with the Authority, as the Authority may reasonably request, to qualify the Authority Bonds for offer and sale under the Blue Sky or other securities laws and regulations of such states and other jurisdictions of the United States as the Authority may designate, and will assist, if necessary therefor, in the continuance of such qualifications in effect as long as required for the distribution of the Authority Bonds; provided, however, that the City will not be required to qualify as a foreign corporation or to file any general consents to service of process under the laws of any state;
(h) The issuance and sale of the Local Obligations is not subject to any transfer or other documentary stamp taxes of the State of California or any political subdivision thereof;
(i) Any certificate signed by any official of the City authorized to do so will be deemed a representation and warranty by the City to the Authority as to the statements made therein.

10. Up to and including 25 days after the End of the Underwriting Period (as defined below), the City will advise the Authority promptly of any proposal to amend or supplement the Official Statement. The City will advise the Authority promptly of the institution of any proceedings known to it by any governmental agency prohibiting or otherwise materially affecting the use of the Official Statement in connection with the offering, sale or distribution of the Authority Bonds or the Local Obligations. As used herein, the term “End of the Underwriting Period” means the later of such time as: (a) the Authority Bonds are delivered to the Original Purchaser (as defined in the Indenture); or (b) the Original Purchaser does not retain, directly or Item 8.1
Mountain House Page 1091 of 1946 -5-
as a member of an underwriting syndicate, an unsold balance of the Authority Bonds for sale to the public. Unless the Authority or the Original Purchaser gives notice to the contrary, the End of the Underwriting Period shall be deemed to be the Closing Date. Any notice delivered pursuant to this provision shall be written notice delivered to the City at or prior to the Closing Date and shall specify a date (other than the Closing Date) to be deemed the “End of the Underwriting Period.”

11. At 8:00 a.m., Pacific Time, on the Closing Date, or at such other time or on such other date as is mutually agreed by the City and the Authority, (a) the City will deliver the Local Obligations to the Trustee in definitive form, duly executed, together with the other documents hereinafter mentioned, (b) subject to the terms and conditions hereof, the Trustee solely from moneys held under the Indenture will accept such delivery and pay the purchase price of the Local Obligations as referenced in paragraph 1 hereof by wire transfer or other funds which are good funds on the Closing Date, (c) the Trustee will deposit into the funds established under the Fiscal Agent Agreement the amounts described in the Fiscal Agent Agreement. Delivery and payment, as aforesaid, will be made at such place as will have been mutually agreed upon by the City, the Trustee and the Authority.

12. The Authority has entered into this Purchase Agreement in reliance upon the representations, warranties and agreements of the City contained herein and to be contained in the documents and instruments to be delivered on the Closing Date, and upon the performance by the City of its obligations hereunder, both as of the date hereof and as of the Closing Date.

Accordingly, the Authority’s obligations under this Purchase Agreement to purchase, to accept delivery of and to pay for the Local Obligations will be subject to the performance by the City of its obligations to be performed hereunder and under such documents and instruments at or prior to the Closing Date, and will also be subject to the following conditions:
(a) The representations and warranties of the City contained herein will be true, complete and correct on the date hereof and on and as of the Closing Date, as if made on the Closing Date;
(b) On the Closing Date, the Resolution and the City Documents will be in full force and effect, and will not have been amended, modified or supplemented, and the Official Statement will not have been amended, modified or supplemented, except in either case as may have been agreed to by both the Authority and the Original Purchaser;
(c) As of the Closing Date, all official action of the City relating to the Local Obligations, including but not limited to the Resolution, will be in full force and effect, and there will have been taken all such actions as, in the opinion of Jones Hall LLP (“Bond Counsel”), will be necessary or appropriate in connection therewith, with the issuance of the Authority Bonds and the Local Obligations, and with the transactions contemplated hereby, all as described in the Official Statement;
(d) The Authority will have the right to terminate the Authority’s obligations under this Purchase Agreement to purchase, to accept delivery of and to pay for the Local Obligations by notifying the City of its election to do so if, after the execution hereof and prior to the Closing: (i) either the marketability of the Authority Bonds or the market price of the Authority Bonds, in the opinion of the Authority, has been materially and adversely affected by any decision issued by a court of the United States (including the United States Tax Court) or of the State of California, by any ruling or regulation Item 8.1
Mountain House                                               Page 1092 of 1946 -6-
(final, temporary or proposed) issued by or on behalf of the Department of the Treasury of the United States, the Internal Revenue Service, or other governmental agency of the United States, or any governmental agency of the State of California, or by a tentative decision with respect to legislation reached by a committee of the House of Representatives or the Senate of the Congress of the United States, or by legislation enacted by, pending in, or favorably reported to either the House of Representatives or the Senate of the Congress of the United States or either house of the Legislature of the State of California, or formally proposed to the Congress of the United States by the President of the United States or to the Legislature of the State of California by the Governor of the State of California in an executive communication, affecting the tax status of the Authority or the City, their property or income, their bonds (including the Authority Bonds) or the interest thereon, or any tax exemption granted or authorized by the Bond Law; (ii) the United States will have become engaged in: hostilities which have resulted in a declaration of war or national emergency, or there will have occurred any other outbreak of hostilities, or a local, national or international calamity or crisis, financial or otherwise, the effect of such outbreak, calamity or crisis being such as, in the reasonable opinion of the Authority, would affect materially and adversely the ability of the Authority to market the Authority Bonds (it being agreed by the Authority that there is no outbreak, calamity or crisis of such a character as of the date hereof); (iii) there will have occurred a general suspension of trading on the New York Stock Exchange or the declaration of a general banking moratorium by the United States, New York State or California State authorities; (iv) there will have occurred a withdrawal or downgrading of any rating assigned to any securities of the City by a national municipal bond rating agency; (v) any Federal or California court, authority or regulatory body will take action materially and adversely affecting the ability of a developer to proceed with the development as contemplated by the Official Statement; (vi) an event described in paragraph 12 hereof occurs which in the opinion of the Authority requires a supplement or amendment to the Official Statement, and such supplement or amendment is not agreed to by the City; and
(e) On or prior to the Closing Date, the Authority will have received each of the following documents:
(1) All documents and opinions required to be received by the Trustee prior to the application of proceeds of the Authority Bonds to the purchase of the Local Obligations;
(2) Opinions, in form and substance satisfactory to the City and the Authority, dated as of the Closing Date, of Bond Counsel, approving, without qualification, the validity of the Local Obligations;
(3) A letter of Bond Counsel, dated the date of the Closing and addressed to the Authority and the Original Purchaser, to the effect that the opinion referred to in the preceding subparagraph (2) may be relied upon by the Authority to the same extent as if such opinion were addressed to it; (4) A supplemental opinion, dated the Closing Date and addressed to the City, the Authority and the Original Purchaser, of Bond Counsel to the effect that this Purchase Agreement has been duly authorized, executed and delivered by, and, assuming due authorization, execution and delivery by the Authority, constitutes a legal, valid and binding agreement of the City enforceable in Item 8.1
Mountain House                                               Page 1093 of 1946 -7-
accordance with its terms, except as such enforceability may be limited by the application of equitable principles if equitable remedies are sought, and that the statements contained in the Official Statement (including the cover page and the Appendices thereto), insofar as such statements purport to summarize certain provisions of the Local Obligations, the City Documents or the Resolution, accurately summarize the information presented therein; (5) A certificate dated the Closing Date, addressed to the Authority and the Original Purchaser, signed by a City official having knowledge of the facts to the effect that:
(i) The representations and warranties of the City contained herein are true and correct in all material respects on and as of the Closing Date as if made on the Closing Date;
(ii) Except as described in the Official Statement, there is no action, suit, proceeding or investigation before or by any court, public board or body pending or threatened, wherein an unfavorable decision, ruling or finding would: (A) affect the creation, organization, existence or powers of the City, or the titles of its members and officers to their respective offices, (B) enjoin or restrain the issuance, sale and delivery of the Local Obligations, the levy or collection of the Special Taxes or any other moneys or property pledged or to be pledged under the Resolution or the Fiscal Agent Agreement, or the pledge thereof, (C) in any way question or affect any of the rights, powers, duties or obligations of the City with respect to the moneys and assets pledged or to be pledged to pay the principal of, premium, if any, or interest on the Local Obligations, (D) in any way question or affect any authority for the issuance of the Local Obligations, or the validity or enforceability of the Local Obligations, the Resolution or the City Documents, or (E) in any way question or affect this Purchase Agreement or the transactions contemplated by the City Documents, the Resolution, the Official Statement or the documents referred to in the Official Statement;
(iii) The City has complied with all agreements, covenants and arrangements, and satisfied all conditions, on its part to be complied with or satisfied on or prior to the Closing Date; and
(iv) To the best of its knowledge, no event affecting the City has occurred since the date of the Official Statement which should be disclosed in the Official Statement for the purposes for which it is necessary to disclose therein in order to make the statements not misleading in any respect;
(6) An opinion, dated the Closing Date and addressed to the City, the Authority and the Original Purchaser, of the City Attorney, to the effect that (A) the City Documents have been duly authorized, executed and delivered by, and, assuming due authorization, execution and delivery, constitute the legal, valid and binding agreement of the City enforceable in accordance with their terms, except as such enforceability may be limited by the application of equitable principles if equitable remedies are sought, (B) the Resolution has been duly adopted, is in full Item 8.1
Mountain House                                               Page 1094 of 1946 -8-
force and effect and has not been modified, amended or rescinded, and (C) except as described in the Official Statement, there is no action, suit, proceeding or investigation before or by any court, public board or body pending or threatened, wherein an unfavorable decision, ruling or finding would: (i) affect the creation, organization, existence or powers of the City or the District; (ii) enjoin or restrain the issuance, sale and delivery of the Local Obligations, the levy and collection of the Special Taxes or the pledge of the Special Taxes and other amounts pledged or to be pledged under the Fiscal Agent Agreement or the pledge thereof; (iii) in any way question or affect any of the rights, powers, duties or obligations of the City with respect to the moneys and assets pledged or to be pledged to pay the principal of, premium, if any, or interest on the Local Obligations; (iv) in any way question or affect any authority for the issuance of the Local Obligations, or the validity or enforceability of the Local Obligations, the Resolution or the City Documents; (v) in any way question or affect this Purchase Agreement or the transactions contemplated by the City Documents, the Official Statement or the documents referred to in the Official Statement and (vi) the statements in the Official Statement relating to the City are true and accurate; (7) Such additional legal opinions, certificates, instruments and documents as the Authority may reasonably request to evidence the truth and accuracy, as of the date hereof and as of the Closing Date, of the City’s representations and warranties contained herein and of the statements and information contained in the Official Statement;
(8) An executed copy of the Fiscal Agent Agreement, as
supplemented; and
(9) The Resolution, certified by authorized officers as a true copy and/or as having been adopted or executed (as applicable), with only such amendments, modifications or supplements as may have been agreed to by the Authority and the Original Purchaser.

All of the opinions, letters, certificates, instruments and other documents mentioned above or elsewhere in this Purchase Agreement will be deemed to be in compliance with the provisions hereof if, but only if, they are in form and substance satisfactory to the Authority, but the approval of the Authority will not be unreasonably withheld. Receipt of, and payment for, the Local Obligations will constitute evidence of the satisfactory nature of such as to the Authority.

The performance of any and all obligations of the City hereunder and the performance of any and all conditions contained herein for the benefit of the Authority may be waived by the Authority in its sole discretion.

If the City will be unable to satisfy the conditions to the obligations of the Authority to purchase, accept delivery of and pay for the Local Obligations contained in this Purchase Agreement, or if the obligations of the Authority to purchase, accept delivery of and pay for the Local Obligations will be terminated for any reason permitted by this Purchase Agreement, this Purchase Agreement will terminate, and neither the Authority nor the City will be under further obligation hereunder, except that the respective obligations of the City and the Authority set forth in paragraphs 14 and 15 hereof will continue in full force and effect.

Item 8.1
Mountain House Page 1095 of 1946 -9-

13. The Authority and the City will determine which portion of expenses incurred in connection with issuance of the Authority Bonds and the Local Obligations will be paid by each respective entity, in such proportion as is in compliance with all applicable laws.

14. To the extent permitted by law, the City will indemnify and hold harmless the Authority and the Trustee, and their respective officers, directors, employees and agents, against any and all losses, claims, damages, liabilities, costs and expenses (including without limitation fees and disbursements of counsel and other expenses) incurred by them or any of them in connection with investigating or defending any loss, claim, damages, liability or any suit, action or proceeding, joint or several, to which they or any of them may become subject under the laws of the State of California or under federal tax law, insofar as such losses, claims, damages, liabilities, costs and expenses (or any suit, action or proceeding in respect thereof) arise out of or are based upon the issuance and sale of the Local Obligations or any untrue statement or alleged untrue statement of a material fact contained in the Official Statement or in any amendment or supplement thereto, or any omission or alleged omission to state therein a material fact relating to the City, the District or the Local Obligations which is required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. This indemnity agreement will be in addition to any liability which the City or the District may otherwise have.

15. This Purchase Agreement is made solely for the benefit of the City and the Authority (including their successors and assigns), and no other person will acquire or have any right hereunder or by virtue hereof. All of the City’s representations, warranties and agreements contained in this Purchase Agreement will remain operative and in full force and effect regardless of: (i) any investigations made by or on behalf of the Authority or (ii) delivery of and payment for the Local Obligations pursuant to this Purchase Agreement. The agreements contained in this paragraph and in paragraph 14 will survive any termination of this Purchase Agreement.

16. This Purchase Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered will be an original, but all such counterparts will together constitute but one and the same instrument.

17. In case any one or more of the provisions contained herein will for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other provision hereof.

18. The validity, interpretation and performance of this Purchase Agreement will be governed by the laws of the State of California.

Item 8.1
Mountain House Page 1096 of 1946 [Signature Page to District Bond Purchase Agreement dated as of _________, 2026] IN WITNESS WHEREOF, the Authority and the City have caused this Purchase Agreement to be executed by their duly authorized officers all as of the date first above written.

MOUNTAIN HOUSE FINANCING AUTHORITY
By:

Executive Director
CITY OF MOUNTAIN HOUSE, on behalf of
each Improvement Area
By:

City Manager
Item 8.1
Mountain House Page 1097 of 1946 A-1

EXHIBIT A
Schedule of Bond Maturities, Principal Amounts and Interest Rates Improvement Area No. 8 Local Obligations
Maturity Date
(September 1)
Principal
Amount
Interest
Rate
Maturity Date
(September 1)
Principal
Amount
Interest
Rate
Improvement Area No. 13 Local Obligations
Maturity Date
(September 1)
Principal
Amount
Interest
Rate
Maturity Date
(September 1)
Principal
Amount
Interest
Rate
Item 8.1
Mountain House Page 1098 of 1946 Jones Hall Draft 8.14.26

CFD FEE FUNDING AGREEMENT
Relating to Certain Impact Fees Payable With Respect to:

IMPROVEMENT AREA NO. 13 OF

CITY OF MOUNTAIN HOUSE
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC FACILITIES AND SERVICES)
This Community Facilities District Funding Agreement (this “Agreement”), dated as of _________ 1, 2026, is by and between the City of Mountain House, a California municipal corporation and general law city (the “City”), for itself and on behalf of City of Mountain House Community Services District Community Facilities District No. 2024-1 (Public Facilities and Services) (“CFD No. 2024-1”), and Lennar Homes of California LLC, a California limited liability company (the “Developer”).

RECITALS:

A. CFD No. 2024-1 was formed by the Board of Directors of the Mountain House Community Services District (“MHCSD”) prior to incorporation of the City, pursuant to the MelloRoos Community Facilities Act of 1982, as amended, Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code (the “Act”) for the financing, among other things, of the public facilities (and services) described in Resolution No. 2024-07 adopted by the Board of Directors of MHCSD on April 10, 2024 (the “Resolution of Formation”). Upon incorporation of the City in July 2024, CFD No. 2024-1 officially became a community facilities district of the City.

B. Pursuant to the Act and the Resolution of Formation, CFD No. 2024-1 was formed with five initial improvement areas, and a future annexation area (the “Future Annexation Area”), from which property has been annexing into CFD 2024-1.

C. The Developer has annexed property from the Future Annexation Area into CFD No. 2024-1 as “Improvement Area No. 13 of City of Mountain House Community Services District Community Facilities District No. 2024-1 (Public Facilities and Services)” (“Improvement Area No. 13”).

D. The Rate and Method of Apportionment of Special Tax for Improvement Area No. 13 provides for the levy of a “Facilities Special Tax,” which may be used to pay debt service on bonds issued by the City for Improvement Area No. 13 (the “Bonds”).

E. The City is authorized to issue Bonds in a maximum principal amount of $30,110,000.

F. CFD Amounts (defined herein) generated for Improvement Area No. 13 are authorized to be used to pay certain impact fees of the City (“Authorized Fees”) attributable to new development within Improvement Area No. 13, and the Developer has requested the City to issue Bonds for the purpose of financing such fees. The Authorized Fees eligible to be financed pursuant to this Agreement are described in Exhibit A.

Item 8.1
Mountain House Page 1099 of 1946 2 AGREEMENT:

1. Agreement to Hold Available Moneys. The City shall, at its discretion and with Developer’s approval, issue Bonds to finance Authorized Fees paid or to be paid by Developer as a condition to construction of homes within Improvement Area No. 13, the proceeds of which are used by the City to be applied toward the cost of public facilities authorized under the Act and the Resolution of Formation. Upon issuance of the Bonds, City shall hold or cause to be held the Bond proceeds available for the payment of the Authorized Fees and any special tax revenues available determined by the City to be available for Authorized Fees (together, the “CFD Amounts”) within a separate fund, account or subaccount (the “Improvement Fund”).

Notwithstanding anything in this Agreement to the contrary, the Developer shall pay each Authorized Fee to, or for the benefit of, the City at the time it is due.

2. Use of CFD Amounts to Pay Authorized Fees.
a. Prioritization. Upon issuance of the Bonds, the CFD Amounts available for the Improvement Fund shall be allocated in the following priority: (i) First, to reimburse Developer for Authorized Fees paid prior to the issuance of Bonds as a reimbursement to Developer; (ii) Second, to the City in an amount requested by the Developer equal to the Community Facilities Fee amount applicable on the date of issuance of the Bonds times the number of units for which the Developer determines to prepay the Community Facilities Fee, thus creating a “Fee Credit” for each such unit; and (iii) Third, to fund Transportation Improvement Fees. The foregoing use of CFD Amounts shall at all times be subject to and conditioned upon compliance with the tax-exemption requirements applicable to the CFD Amounts. b. Developer Request for Payment; Use of Fee Credits. The CFD Amounts in the Improvement Fund shall be disbursed pursuant to written request of the Developer, once approved by the City Manager, Finance Director, Administrative Services Director, or any designee of the foregoing (each, a “City Officer”), as described below. All disbursements from the Improvement Fund to the City shall be made by wire transfer of immediately available funds or by check payable to the Developer or the City, as appropriate, unless another method of payment is requested in writing by the intended recipient. Upon issuance of Bonds, the Developer shall request reimbursement of the Community Facilities Fees paid prior to the issuance of the Bonds and the City, upon and subject to verification of the amount of such fees so paid, shall disburse proceeds of the Bonds to the Developer in the amount of such reimbursement. As the Developer seeks additional building permit(s) for the project, building permits to be issued first following the date of issuance of the Bonds shall not require payment of the Community Facilities Fee to the extent a Fee Credit is available, which Fee Credit shall be applied by the City to the issuance of such building permit(s) in lieu of cash payment. c. City Response to Developer Request for Payment. Any request for payment by the Developer for Authorized Fees shall be made to the applicable City Officer in a form acceptable to the City and include the supporting documentation herein specified. The applicable City Officer shall promptly review such request to determine that disbursement thereunder would not violate tax-exemption requirements applicable to the CFD Amounts to be used for payment. If tax-exemption requirements can be met, the applicable City Officer shall promptly review such request to: (i) determine that it is complete; or (ii) determine that the request is incomplete and to request in writing additional information and documentation reasonably necessary for the applicable City Officer to complete the review. Within 30 calendar days after the date a request is determined to be complete, the applicable City Officer will review the request to confirm that all conditions in this Agreement for the payment of Authorized Item 8.1
Mountain House Page 1100 of 1946 3 Fees have been satisfied, to the extent applicable, and provide notice to Developer either that:
(i) the request is approved (which will be confirmed by counter-signing the request); or (ii) the request is disapproved in whole or in part, specifying in the notice the portion of the request that is disapproved and the reason(s) for disapproval. If the request is disapproved in part, the applicable City Officer will process the request for partial payment under subsection d. below.

Developer may resubmit any request disapproved in whole or in part with additional supporting documentation, which resubmission shall be processed by the City in the same manner as an original request for payment under this subsection c.
d. Timing of Payments. Within 15 calendar days after approving a request for Authorized Fees (in whole or in part), the City shall authorize payment of such Authorized Fees to be made exclusively from the CFD Amounts pursuant to the applicable provisions of the applicable Fiscal Agent Agreement or other agreement governing the Improvement Fund. If there are insufficient CFD Amounts to pay the full amount of a payment request, then the City shall authorize payment of as much of the amount on the payment request for Authorized Fees as there are CFD Amounts available, and the payment of the balance of the payment request for such Authorized Fees shall be deferred until there are sufficient CFD Amounts available to pay the remaining balance of the payment request; provided, however, in the event and to the extent there are or will be insufficient CFD Amounts to provide payment in full the City shall have no obligation to fund the shortfall from any other sources.

Promptly following the availability of CFD Amounts, the City shall, from time to time and in as many installments as necessary, authorize payment of the remaining balance of the payment request for Authorized Fees. Any provision in this Agreement to the contrary notwithstanding, in response to any request for payment under this Section 2, the City shall not be required to make any payments from CFD Amounts held and maintained by the City if the CFD Amounts held and maintained by the Fiscal Agent may not be applied to pay for the any Authorized Fee that would violate federal tax law or City policy. Payment requests may be paid (i) in any number of installments as CFD Amounts become available and (ii) irrespective of the length of time of such deferral of payment. In no event shall the City be required to authorize or make payments for Authorized Fees from any funding CFD Amounts other than the CFD Amounts.
e. Deposits. To the extent Authorized Fees are paid prior to the availability of CFD Amounts, the amounts paid to the City shall be deemed to be deposits (each a “Deposit”) that are subject to refund by the City to Developer (and the Developer only, regardless of the entity that paid the Deposits). Any Deposits made to the City shall be deposited in a separate capital facilities account(s) for Improvement Area No. 13 and may be expended by the City in the ordinary course of business. The Developer acknowledges that the City may finance Authorized Fees with proceeds of tax-exempt bonds only if the City can meet certain requirements of federal tax law.

Any Deposits that have not been returned to the Developer at the time it is determined that there will be no further CFD Amounts available shall be retained by the City and may be used for the purposes for which the Authorized Fee was required, and the unrefunded Deposits shall constitute full and final payment for such Authorized Fees then-due.

The payment of Authorized Fees by the Developer prior to the availability of the CFD Amounts in the form of a Deposit shall not be construed as a dedication or gift of the Authorized Fees, or a waiver of the return of the Deposits, it being the intention that the CFD Amounts be available to the City in lieu of the Deposit to the extent of the CFD Amounts.

Item 8.1
Mountain House Page 1101 of 1946 4 f. Credits. The parties agree that the use of CFD Amounts to pay Authorized Fees that would otherwise be payable by the Developer (or its successors in interest in Improvement Area No. 13) and that were subsequently satisfied by the construction of related facilities shall not prevent the financing of such facilities through the CFD Amounts (i.e., the repayment of the impact fees and the funding of the facilities is not “double-dipping”).

5. Governing Law. This Agreement shall be governed by and enforced in accordance with the laws of the State of California applicable to contracts made and performed in the State of California.

6. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original.
[Signature Page Follows]
Item 8.1
Mountain House Page 1102 of 1946 5 IN WITNESS WHEREOF the Parties have caused this Agreement to be executed by their authorized representatives as of the effective date stated above.

CITY OF MOUNTAIN HOUSE, for itself and on behalf of

MOUNTAIN HOUSE COMMUNITY SERVICES DISTRICT
COMMUNITY FACILITIES DISTRICT NO. 2024-1 (PUBLIC

FACILITIES AND SERVICES)
By:________________________________
Name: Steve Pinkerton
Title: City Manager

LENNAR HOMES OF CALIFORNIA LLC,
a California limited liability company
By:________________________________
Name:

Title:

Item 8.1
Mountain House Page 1103 of 1946 A-1

EXHIBIT A
AUTHORIZED FEES*
Developer Name Lennar Homes of California LLC
Project Name
Estimated Units
Description of
Eligible Fee(s)
• Community Facilities Fees
• Transportation Improvement Fees
* May be amended by written consent of the City and Developer at any time.

Item 8.1
Mountain House Page 1104 of 1946 Jones Hall Draft of Aug. 17, 2026
PRELIMINARY OFFICIAL STATEMENT DATED AUGUST [28], 2026
NEW ISSUE–FULL BOOK ENTRY NOT RATED
In the opinion of Jones Hall LLP, Bond Counsel, subject, however, to certain qualifications described herein, under existing law, the interest on the Bonds is excluded from gross income for federal income tax purposes and such interest is not an item of tax preference for purposes of the federal alternative minimum tax. Interest on the Bonds may be subject to the corporate alternative minimum tax. In the further opinion of Bond Counsel, such interest is exempt from California personal income taxes. See “TAX MATTERS.” $10,175,000*

MOUNTAIN HOUSE FINANCING AUTHORITY

SPECIAL TAX REVENUE BONDS
SERIES 2026B
Dated: Date of Delivery Due: September 1, as shown on inside cover The bonds captioned above (the “Bonds”), are being issued by the Mountain House Financing Authority (the “Authority”) to assist the City of Mountain House (the “City”) finance certain improvements for Improvement Area Nos. 8 and 13 of its Community Facilities District No. 2024- 1 (Public Facilities and Services) (the “District” and “Improvement Area No. 8” and “Improvement Area No. 13” and together, the “Improvement Areas” as described herein). All of the proceedings of the City to form the District and the Improvement Areas and to levy the special taxes (described herein) for the construction and acquisition of the improvements have been undertaken pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being California Government Code Section 53311, et seq. (the “Mello-Roos Act”).

The Bonds are issued pursuant to the Marks-Roos Local Bond Pooling Act of 1985. The City Council of the City comprises the governing board of the Authority. Concurrently with the issuance of the Bonds, the City is issuing special tax bonds for each Improvement Area (collectively, the “Local Obligations,” as described herein) pursuant to a separate Local Obligation Fiscal Agent Agreements (described herein).

The Bonds are payable solely from “Revenues” pledged by the Authority under the Indenture (described herein), which consist primarily of payments received by the Authority from the City on the Local Obligations. Each respective series of Local Obligations is payable from special taxes (net of administration expenses) which special taxes are secured by liens authorized under the Mello-Roos Act and levied on taxable parcels in each respective Improvement Area. Installments of principal and interest sufficient to meet annual Local Obligations debt service are included on the regular county tax bills sent to owners of taxed parcels. The special taxes of each Improvement Area are the source of payment of debt service on the respective Local Obligations, and scheduled payments on the Local Obligations are calculated to be sufficient to permit the Authority to pay the principal of and interest on the Bonds when due. Unpaid special taxes do not constitute a personal indebtedness of the owners of the parcels within an Improvement Area. In the event of delinquency, proceedings may be conducted only against the parcel of real property securing the delinquent special tax. There is no assurance the owners will be able to pay the special tax or that they will pay a special tax even though financially able to do so. The special taxes and Local Obligations of each Improvement Area are not cross-collateralized. The Authority will establish a Reserve Fund for the Bonds, as described herein. Draws on the Reserve Fund are to be replenished only from Special taxes of the Improvement Area associated with the need for the draw. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS.”
Lennar Homes is the merchant builder developing all of the lots within each Improvement Area. As of July 18, 2026, 137 of the 503 taxable lots within Improvement Area No. 8 are single-family homes sold and closed to individual homeowners. There have been no closings within Improvement Area No. 13. See “THE IMPROVEMENT AREAS” for additional details.

The Bonds will be issued in denominations of $5,000 or any integral multiple of $5,000. Interest is payable semiannually on each March 1 and September 1, commencing March 1, 2027. The Bonds will be initially issued only in book-entry form and registered to Cede & Co. as nominee of The Depository Trust Company (“DTC”), which will act as securities depository of the Bonds. Principal and interest (and premium, if any) on the Bonds is payable by the Trustee to DTC, which remits such payments to its Participants for subsequent distribution to the registered owners as shown on the Trustee’s books. See “THE BONDS – Bond Terms” and “– Book-Entry Only System.” The Bonds are subject to optional redemption, mandatory sinking-fund redemption, and mandatory special redemption from the proceeds of early redemption of Local Obligations as a result of special tax prepayments. See “THE BONDS – Redemption.”

THE BONDS ARE SPECIAL LIMITED OBLIGATIONS OF THE AUTHORITY, PAYABLE FROM AND SECURED BY, THE SPECIAL TAX REVENUES AND FUNDS PLEDGED THEREFOR IN THE INDENTURE. THE BONDS ARE NOT A DEBT OR LIABILITY OF THE CITY, THE

STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF, OTHER THAN THE AUTHORITY TO THE LIMITED EXTENT DESCRIBED HEREIN. THE INFORMATION SET FORTH IN THIS OFFICIAL STATEMENT, INCLUDING INFORMATION UNDER THE HEADING “SPECIAL RISK FACTORS,” SHOULD BE READ IN ITS ENTIRETY.

This cover page contains certain information for general reference only. It is not a summary of all of the provisions of the Bonds.

Prospective investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision.

See “SPECIAL RISK FACTORS” herein for a discussion of the special risk factors that should be considered, in addition to the other matters and risk factors set forth herein, in evaluating the investment quality of the Bonds.

The Bonds are offered when, as and if issued and received by the Underwriter, subject to the approval as to their legality by Jones Hall LLP, San Mateo, California, as Bond Counsel. Jones Hall LLP is also serving as Disclosure Counsel to the City. Stradling Yocca Carlson & Rauth LLP is acting as counsel to the Underwriter. It is anticipated that the Bonds in definitive form will be available for delivery through the facilities of DTC on or about September ___, 2026*.
[Piper Sandler Logo]
The date of this Official Statement is: _______, 2026.
___________________
* Preliminary; subject to change.

This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the time the Official Statement is delivered in final form. Under no circumstances will this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy nor will there be any sale of these securities in any jurisdiction in which such offer solicitation or sale would be unlawful.

Item 8.1
Mountain House Page 1105 of 1946 $_________________

MOUNTAIN HOUSE FINANCING AUTHORITY

SPECIAL TAX REVENUE BONDS
SERIES 2026B

MATURITY SCHEDULE
Maturity
(Sept. 1)
Principal
Amount
Interest
Rate Yield Price
CUSIP†
(________)
$__________ _____% Term Bond Due September 1, 20___; Yield ____%; Price: ____% CUSIP†: _________
$__________ _____% Term Bond Due September 1, 20___; Yield ____%; Price: ____% CUSIP†: _________
† CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by FactSet Research Systems Inc. Copyright (c) 2026 CUSIP Global Services. All rights reserved. CUSIP® data herein is provided by CUSIP Global Services. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP® numbers are provided for convenience of reference only. None of the Authority, City, the Underwriter, the Municipal Advisor, or their agents or counsel take any responsibility for the accuracy of such numbers.

Item 8.1
Mountain House Page 1106 of 1946

MOUNTAIN HOUSE FINANCING AUTHORITY
(SAN JOAQUIN COUNTY, CALIFORNIA)
Board of Directors / City Council
Andy Su, Chair
Ronna Green, Vice Chair
Matt Disko, Member
Dan Harrison, Member
Bernice King Tingle, Member
Authority / City Staff
Steven J. Pinkerton, Executive Director / City Manager
Sarah Ragsdale, Treasurer / Administrative Services Director Thomas Retchless, City Finance Director
Margaret Wimberly, Secretary / City Clerk
John Bakker of Redwood Public Law, General Counsel / City Attorney ____________________________

SPECIAL SERVICES
Bond Counsel and Disclosure Counsel
Jones Hall LLP
San Mateo, California
Municipal Advisor
Kosmont Financial Services
El Segundo, California
Special Tax Consultant and Administrator
Goodwin Consulting Group, Inc.

Sacramento, California
Appraiser
Integra Realty Resources
Sacramento, California
Trustee and Fiscal Agent
Computershare Trust Company, N.A.

San Francisco, California
Item 8.1
Mountain House Page 1107 of 1946

GENERAL INFORMATION ABOUT THIS OFFICIAL STATEMENT
Use of Official Statement. This Official Statement is submitted in connection with the sale of the Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose.

This Official Statement is not to be construed as a contract with the purchasers of the Bonds.

Estimates and Forecasts. When used in this Official Statement and in any continuing disclosure by the Authority or the City, in any press release and in any oral statement made with the approval of an authorized officer of the Authority or the City, the words or phrases “will likely result,” “are expected to”, “will continue”, “is anticipated”, “estimate”, “project,” “forecast”, “expect”, “intend” and similar expressions identify “forward looking statements.” Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. Any forecast is subject to such uncertainties. Inevitably, some assumptions used to develop the forecasts will not be realized and unanticipated events and circumstances may occur. Therefore, there are likely to be differences between forecasts and actual results, and those differences may be material. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, give rise to any implication that there has been no change in the affairs of the Authority or the City since the date hereof.

Limit of Offering. No dealer, broker, salesperson or other person has been authorized by the Authority or the City to give any information or to make any representations in connection with the offer or sale of the Bonds other than those contained herein and if given or made, such other information or representation must not be relied upon as having been authorized by the Authority or the Underwriter.

This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale.

Involvement of Underwriter. The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, their responsibilities to investors under the Federal Securities Laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. The information and expressions of opinions herein are subject to change without notice and neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Authority or the City since the date hereof. All summaries of the documents referred to in this Official Statement are made subject to the provisions of such documents, respectively, and do not purport to be complete statements of any or all of such provisions.

IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERALLOT OR

EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME.

THE BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS

AMENDED, IN RELIANCE UPON AN EXCEPTION FROM THE REGISTRATION REQUIREMENTS CONTAINED IN SUCH ACT. THE BONDS HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE.

Item 8.1
Mountain House Page 1108 of 1946 i

TABLE OF CONTENTS
INTRODUCTION........................................ 1
SOURCES AND USES OF FUNDS........... 8
THE BONDS............................................... 9 Authority for Issuance ............................. 9
Description of the Bonds......................... 9
Redemption........................................... 10 Book-Entry Only System....................... 12
Transfer or Exchange of Bonds ............ 13
DEBT SERVICE SCHEDULES ................ 14

SECURITY AND SOURCES OF PAYMENT
FOR THE BONDS ................................ 18
Limited Obligation ................................. 18 Revenues; Flow of Funds ..................... 19
Reserve Fund ....................................... 21 Surplus Fund......................................... 22 Additional Local Obligations and Authority
Bonds ................................................ 22 Security for the Local Obligations ......... 23
Special Tax Methodology...................... 27
THE AUTHORITY..................................... 28
THE CITY ................................................. 28 THE IMPROVEMENT AREAS ................. 29

VALUE OF PROPERTY WITHIN THE
IMPROVEMENT AREAS...................... 30
General ................................................. 30 Estimated Value of Taxable Property ... 30
Overlapping Liens ................................. 34
Value to Special Tax Burden Ratios ..... 35
Priority of Lien....................................... 36 SPECIAL RISK FACTORS....................... 36
Limited Obligation to Pay Debt Service 36
Levy and Collection of the Special Taxes
.......................................................... 36 Payment of Special Taxes is not a
Personal Obligation of the Property
Owners ..............................................38 Concentration of Ownership of
Undeveloped Property.......................38
Property Values.....................................38
Other Possible Claims Upon the Property
Values................................................40 Enforcement of Special Taxes on
Governmentally Owned Properties....41
Depletion of Reserve Fund....................43
Bankruptcy Delays ................................43
Disclosure to Future Purchasers ...........43
No Acceleration; Right to Pursue
Remedies ..........................................44
Potential Early Redemption of Bonds from
Prepayments .....................................44
Loss of Tax Exemption..........................44
Voter Initiatives......................................44 Secondary Market for Bonds.................45
Pandemic Diseases...............................46
Cyber Security.......................................46

CONSTITUTIONAL LIMITATIONS ON
TAXATION AND APPROPRIATIONS...46
TAX MATTERS.........................................47
LEGAL OPINION ......................................49
NO RATINGS............................................49 NO LITIGATION........................................49 CONTINUING DISCLOSURE...................49
MUNICIPAL ADVISOR .............................51
UNDERWRITING......................................51
CONTINGENT FEES................................51
EXECUTION.............................................52 APPENDIX A-1 - Improvement Area No. 8 and Special Tax Bonds APPENDIX A-2 - Improvement Area No. 8 Appraisal
APPENDIX A-3 - Improvement Area No. 8 Rate and Method of Apportionment APPENDIX B-1 - Improvement Area No. 13 and Special Tax Bonds APPENDIX B-2 - Improvement Area No. 13 Appraisal
APPENDIX B-3 - Improvement Area No. 13 Rate and Method of Apportionment APPENDIX C - General Demographic Information about the Mountain House Area APPENDIX D - Summary of Certain Provisions of Principal Legal Documents APPENDIX E - Form of Bond Counsel Opinion
APPENDIX F - Form of Continuing Disclosure Certificates APPENDIX G - DTC and the Book-Entry-Only System
Item 8.1
Mountain House Page 1109 of 1946 1 OFFICIAL STATEMENT
$10,175,000*

MOUNTAIN HOUSE FINANCING AUTHORITY

SPECIAL TAX REVENUE BONDS
SERIES 2026B
This Official Statement, including the cover page and all Appendices hereto, is provided to furnish certain information regarding the issuance by the Mountain House Financing Authority (the “Authority”) of its Special Tax Revenue Bonds, Series 2026B (the “Bonds”) in the aggregate principal amount set forth above.

Any statements made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. Definitions of certain terms used herein and not defined herein have the meaning set forth in the Indenture or the respective Local Obligation Fiscal Agent Agreement described herein.

INTRODUCTION
This Introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in the entire Official Statement, including the cover page and appendices hereto, and the documents summarized or described herein. A full review should be made of the entire Official Statement.

The offering of the Bonds to potential investors is made only by means of the entire Official Statement.

Capitalized terms used but not defined in this Official Statement have the meanings set forth in the Indenture or respective Local Obligation Fiscal Agent Agreement (as defined below).

See “APPENDIX D – Summary of Certain Provisions of Principal Legal Documents.” The City. The City of Mountain House (the “City”) was incorporated by vote of its citizens at an election held on March 5, 2024, becoming the 483rd incorporated city admitted to the State of California in July 2024. As part of the incorporation process, the District, which had been formed by the City’s predecessor, Mountain House Community Services District, officially became a community facilities district of the City with the City Council as its legislative body.

The City is located in San Joaquin County (the “County”), north of Interstate 205, east of the Alameda County line and west of Mountain House Parkway approximately 6 miles northwest of the City of Tracy and west of the City of Lathrop. Regional access to the community is from Interstate 205, along the City’s southern boundary. Local access is via Grant Line Road and Byron Road, which traverse the community, and Mountain House Parkway along the eastern boundary. For economic and demographic information regarding the area in and around the City, see “APPENDIX C – GENERAL DEMOGRAPHIC INFORMATION ABOUT THE MOUNTAIN HOUSE AREA.”
Item 8.1
Mountain House Page 1110 of 1946 2 The Mountain House Community. Prior to incorporation of the City, much of the land which is now within the City boundary had been undergoing substantial residential development with the Mountain House unincorporated community. Homebuilding began in 2001 and as of the end of 2025, approximately 8,000 homes are within the City. Homebuilding continues to the present, with significant land holdings still undeveloped and expected to primarily become residential neighborhoods as homebuilding continues according to market demands.

The District and Improvement Areas. On February 14, 2024, the Board of Directors of the Mountain House Community Services District, as the then-legislative body for Community Facilities District No. 2024-1 (Public Facilities and Services) (the “CFD” or the “District”), adopted a Resolution of Intention to form the District, five improvement areas therein and a future annexation area, to levy a special tax (the “Facilities Special Tax,” also referred to herein as the “Special Tax”), and to incur bonded indebtedness for the purpose of financing certain authorized public facilities and services, all under the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”). After conducting a noticed public hearing, on April 10, 2024, the Board adopted a Resolution of Formation (the “Resolution of Formation”), which established the District, designed five initial improvement areas therein, and identified a future annexation area for the District (the “Future Annexation Area”), and established a bonded indebtedness limit for the District. The City also levies a “Services Special Tax” within each Improvement Area of the District, which amount is not pledged to the debt service on the Local Obligations or the Bonds.

Upon incorporation of the City in July 2024, the District officially became a community facilities district of the City with the City Council of the City (the “City Council”) as its legislative body. Subsequently, the following property within the Future Annexation Area was annexed into the District:
• 503 taxable parcels, including as of July 18, 2026 137 completed homes owned by individuals and 366 lots developed or developing into single-family homes, designated as Improvement Area No. 8 of the District (“Improvement Area No. 8”); and
• 330 taxable parcels developing into single-family homes, designated as Improvement Area No. 13 of the District (“Improvement Area No. 13”).

All of the lots in both Improvement Areas are planned for development into single-family homes by Lennar Homes of California LLC, as described herein.

Financing Plan. The Bonds are being issued by the Authority to assist the City in the financing certain improvements authorized for Improvement Area Nos. 8 and 13 (each, an “Improvement Area”), as described herein. See “SOURCES AND USES OF FUNDS.” The Authority has the ability to purchase special tax bonds issued for each Improvement Area and to pool payments received by the Authority on the bonds as security for payment of revenue bonds issued by the Authority. Concurrently with the issuance of the Bonds, the City is issuing a series of special tax bonds for each Improvement Area (collectively, the “Local Obligations,” as described herein). Proceeds of the Local Obligations will be used to finance authorized facilities (including facilities payable from impact fees), to contribute to a reserve fund for the Bonds, and to pay costs of issuance. Each respective series of Local Obligations is payable from special taxes (net of administration expenses) which special taxes are secured by liens authorized under the Mello-Roos Act and levied on taxable parcels in each respective Improvement Area.

Item 8.1
Mountain House Page 1111 of 1946 3 Installments of principal and interest sufficient to meet annual Local Obligations debt service are included on the regular county tax bills sent to owners of taxed parcels.

The special taxes of each Improvement Area are the source of payment of debt service on the respective Local Obligations, and scheduled payments on the Local Obligations are calculated to be sufficient to permit the Authority to pay the principal of and interest on the Bonds when due. The Local Obligations of Improvement Area Nos. 8 and 13 are only secured by Special Taxes within each respective Improvement Area. No pledge of Special Taxes to pay a series of Local Obligations is cross-collateralized to any other series of Local Obligations. See “DEBT SERVICE SCHEDULES.”
Authority for Issuance. The Bonds are issued pursuant to the Marks-Roos Local Bond Pooling Act of 1985, being Article 4 of Chapter 5, Division 7, Title 1 of the California Government Code (the “Bond Law”) and the terms of an Indenture dated as of September 1, 2026 (the “Indenture”) between the Authority and Computershare Trust Company, N.A., as trustee (the “Trustee”). The Local Obligations of Improvement Area No. 8 are issued by the City pursuant to the Mello-Roos Act and the terms of a Fiscal Agent Agreement, dated as of June 1, 2025 as amended and supplemented by a Supplemental Fiscal Agent Agreement, dated as of September 1, 2026 (the “Supplemental Agreement No. 1”) and the Local Obligations of Improvement Area No. 13 are issued by the City pursuant to the Mello-Roos Act and the terms of a Fiscal Agent Agreement, dated as of September 1, 2026 (as to each Improvement Area, the “Local Obligation Fiscal Agent Agreement” and together, the “Local Obligation Fiscal Agent Agreements”) between the City and Computershare Trust Company, N.A., as fiscal agent (the “Fiscal Agent”).

Security for the Bonds. The Bonds are special obligations of the Authority, payable from and secured by “Revenues” (as defined herein) of the Authority consisting primarily of payments received by the Authority as owner of the Local Obligations. Scheduled payments under the Local Obligations collectively are sufficient to provide the Authority with money to pay the principal of and interest on the Bonds when due. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS – Payment of the Local Obligations” below.

The Bonds are secured by a lien on and security interest in all of the Revenues and any other amounts (including proceeds of the sale of the Bonds) held in certain funds established under to the Indenture. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS – Revenues.”
To provide funds for payment of the Bonds, the Authority will establish a Reserve Fund, as described herein. Draws on the Reserve Fund are to be replenished only from Special Taxes of the Improvement Area associated with the need for the draw. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS – Reserve Fund.”
Security for the Local Obligations. The Local Obligations are issued upon and are secured by the Special Taxes (net of certain administrative expenses) levied against taxable property in each respective Improvement Area, and such unpaid special taxes constitute a trust fund for the redemption and payment of the principal of the respective Local Obligations and the interest thereon. The portion of special tax levies authorized to be levied for providing City services are not included in the references to “Special Taxes” herein.

The Special Taxes are to be levied by the City on taxable real property within the boundaries of each Improvement Area. As to each Improvement Area, the Local Obligations are Item 8.1
Mountain House Page 1112 of 1946 4 also payable from the proceeds of any foreclosure actions brought following a delinquency in payment of the Special Taxes of that Improvement Area, and from amounts held in certain funds and accounts related to the respective Local Obligations, all as more fully described herein. The Special Tax applicable to each taxable parcel in each Improvement Area will be levied and collected according to the tax liability previously determined by the City Council through the application of a rate and method of apportionment of Special Tax for each respective Improvement Area (each, a “Special Tax Formula”) which was approved in connection with the annexation of each Improvement Area into the District from the Future Annexation Area. The Special Taxes represent liens on the parcels of land subject to a Special Tax and failure to pay the Special Taxes could result in proceedings to foreclose the delinquent property. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS – Special Tax Methodology” and “APPENDIX A-3 and APPENDIX B-3 – RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.”
Unpaid Special Taxes do not constitute a personal indebtedness of the owners of the parcels within the respective Improvement Area and the owners have made no commitment to pay the principal of or interest on the Local Obligations or the Bonds or to support payment of the Bonds in any manner. In the event of delinquency, proceedings may be conducted only against the particular parcel securing the delinquent Special Tax.

No special taxes or funds of each Improvement Area is pledged to pay the Local Obligations of the other Improvement Area and no special taxes or funds of the Improvement Areas are pledged to pay the Local Obligations of any other Improvement Area.

Additional Local Obligations, Parity Debt and Additional Bonds. Bonds may be issued for each Improvement Area secured on parity with the respective Local Obligations, subject to meeting certain conditions, as described herein. The Improvement Area No. 8 Local Obligations are the second series of bonds issued and are secured by special taxes on a parity basis with a first series issued in 2025.

Additional Bonds secured by the Indenture may be issued but only for refunding purposes or for the purpose of facilitating the issuance of parity bonds for Improvement Area No. 8 and Improvement Area No. 13. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS – Additional Local Obligations and Authority Bonds.” Lennar Homes and the Land Banks. Lennar Homes of California, LLC, a California limited liability company (“Lennar Homes”) is the merchant builder developing all of the lots within each Improvement Area. As of July 18, 2026, 137 of the 503 taxable lots within Improvement Area No. 8 were sold and closed to individual homeowners. There have been no closings within Improvement Area No. 13.

In connection with the development of the property in the Improvement Areas, Lennar Homes has entered into land-banking arrangements with AG EHC II (LEN) CA 2, L.P. and AG EHC II (LEN) CA 4B, L.P. (for Improvement Area No. 8) and DRP Solaris CA 2, LLC (for Improvement Area No. 13) (collectively, the “Land Banks”). Under this arrangement, Lennar Homes has the option, but not the obligation, to acquire lots from the applicable Land Bank pursuant to a take-down schedule. See “THE IMPROVEMENT AREAS” for additional details on Lennar Homes’ development.

Value of Property in the Improvement Areas. Property in each Improvement Area is security for the respective Special Taxes levied by the City in each Improvement Area. The Item 8.1
Mountain House Page 1113 of 1946 5 Authority ordered preparation by Integra Realty Resources, Inc., Sacramento, California (the “Appraiser”) of a separate appraisal report for each Improvement Area (collectively, the “Appraisals”), of the estimated value of certain taxable land within each Improvement Area for Lennar Homes (described herein). Value conclusions (which for Improvement Area No. 8 includes the 2026-27 San Joaquin County assessed value for 113 completed homes) as of the July 18, 2026 date of value are as follows.

ESTIMATES OF MARKET VALUE AS SET FORTH IN APPRAISALS
As of July 18, 2026(1)
Improvement
Area
Merchant
Builder(2)
No.

Parcels
Assessed
Value Component
Appraised
Value Component
Combined
Value
No. 8 Lennar Homes 503 $108,285,289 $163,869,000 $272,154,289 No. 13(3) Lennar Homes 330 n/a 107,324,000 107,324,000
Totals 833 $108,285,289 $271,193,000 $379,478,289
(1) The City commissioned an appraisal of 390 (of the 503) taxable lots within Improvement Area No. 8 and all 330 taxable lots within Improvement Area No. 13. Of the 390 taxable lots appraised within Improvement Area No. 8, there were 69 completed single-family homes not currently assessed at or above $750,000 by the San Joaquin County Assessor; as such, a “not-less than” estimate of market value for the smallest floor plan per product line constructed within Improvement Area No. 8 was appraised and assigned to each respective Assessor’s parcel that meets this criteria. (2) Lennar Homes and the Land Banks have entered into option agreement pursuant to which Lennar Homes has the option, but not the obligation, to acquire lots within Improvement Area No. 8 and Improvement Area No. 13 according to a takedown schedule.

Accordingly, as of July 18, 2026, certain lots within each Improvement Area were owned by Lennar Homes and certain lots were owned by the applicable Land Bank. There is no guarantee that Lennar Homes will acquire the remaining lots owned by the applicable Land Banks as planned. As of July 18, 2026, 137 homes had been sold and closed to individual homeowners within Improvement Area No. 8 and 0 homes within Improvement Area No. 13. (3) The appraised value of the 330 taxable lots within Improvement Area No. 13 of $107,324,000 is lower than the $124,654,200 assessed valuation shown on the Fiscal Year 2026-27 County property tax roll. See APPENDIX B-1 and APPENDIX B-2 for additional details.

Source: Integra Realty Resources, Inc.

The Appraisals are set forth in their entirety in the respective Appendix for each Improvement Area attached hereto, which Appendices are a part of this Official Statement. The description herein of the Appraisals are intended for limited purposes only; each Appraisal should be read in its entirety. In considering the estimates of value evidenced by such Appraisal, it should be noted that the Appraisals are based upon a number of standard and special assumptions that affected the estimates as to value, in addition to the assumption of completion of the facilities and/or payment of the fees expected to be funded with the proceeds of the respective Bonds. See “VALUE OF PROPERTY WITHIN THE IMPROVEMENT AREAS – Estimated Value of Taxable Property.”
Allocation of Local Obligations. A summary of the allocation of the Local Obligations and current merchant builder (as described herein) is set forth in the following table.

ALLOCATION OF LOCAL OBLIGATIONS
Improvement
Area
No.

Parcels
Amount of Local
Obligations*
% of Aggregate
Local Obligations*
No. 8 503 $4,925,000 48.4%
No. 13 330 5,250,000 51.6
Totals 833 $10,175,000 100.0%
* Preliminary; subject to change.

Source: Piper Sandler & Co; Goodwin Consulting Group, Inc.

Item 8.1
Mountain House Page 1114 of 1946 6 Planned Development in the Improvement Areas. Lennar Homes intends that finished homes will be sold to individual homeowners in each Improvement Area, as further described herein. A summary of development as of the date indicated follows.

SUMMARY OF IMPROVEMENT AREA DEVELOPMENT STATUS(1)
As of July 18, 2026
Improvement
Area
Total Units
Planned
Completed
Homes Owned
by Lennar
Homes and AG
Land Banks
Partially
Completed
Homes
(Building
Permits)
Remaining
Partially
Improved/
Finished Lots
Homes Sold
and Closed
No. 8 503 45 26 295 137
No. 13 330 0 0 330 0
Totals 833 45 26 625 137
(1) See Appendix A-1 and Appendix B-1 for more detailed information regarding the development status within each Improvement Area and the land-banking arrangements applicable to each project.

Source: Lennar Homes.

Overlapping Land-Secured Indebtedness. Land in each of the Improvement Areas is also within one or more overlapping community facilities districts established by Lammersville Joint Unified School District, which have issued land-secured debt in the past and are anticipated to issue additional land-secured debt in the future. Land within each Improvement Area will be subject to increased future levies for these community facilities districts, which will reduce the value to lien ratios shown in this Official Statement. See “VALUE OF PROPERTY WITHIN THE IMPROVEMENT AREAS” and APPENDIX A-1 and APPENDIX B-1 for additional details.

Value-to-Lien Ratios. The combined value of all taxable land in Improvement Area No. 8 and Improvement Area No. 13, as of the July 18, 2026 date of value of the Appraisals, is $379,478,289. The principal amount of the direct and overlapping debt in the combined Improvement Areas and the 2025 Bonds is $50,057,491*, which consists of the Local Obligations and the 2025 Bonds ($15,975,000*) and overlapping debt ($34,082,491). The valueto-lien with respect to each respective Improvement Area (including applicable overlapping landsecured bonded debt, if any) is as follows:
• for Improvement Area No. 8, 8.1:1*, and
• for Improvement Area No. 13, 6.5:1*.

This is an average; individual parcels may have value-to-lien ratios that are substantially different. See also “OWNERSHIP AND VALUE OF PROPERTY WITHIN THE IMPROVEMENT AREAS – Value to Special Tax Burden Ratios.”

ALL OBLIGATIONS OF THE AUTHORITY UNDER THE INDENTURE AND THE

BONDS ARE SPECIAL OBLIGATIONS OF THE AUTHORITY, PAYABLE SOLELY FROM AND SECURED BY REVENUES. THE BONDS ARE LIMITED OBLIGATION BONDS UNDER THE

ACT AND ARE PAYABLE SOLELY FROM AND ARE SECURED SOLELY BY THE SPECIAL TAXES.
* Preliminary; subject to change.

Item 8.1
Mountain House Page 1115 of 1946 7 THE AUTHORITY AND THE CITY HAVE NO OBLIGATION TO ADVANCE MONIES TO PAY BOND DEBT SERVICE IN THE EVENT OF DELINQUENT SPECIAL TAXES.

BONDOWNERS SHOULD NOT RELY UPON THE CITY TO ADVANCE MONIES TO THE SPECIAL TAX FUND. NOTWITHSTANDING THE FOREGOING, THE CITY MAY, AT ITS

SOLE OPTION AND IN ITS SOLE DISCRETION ELECT TO ADVANCE AVAILABLE

SURPLUS FUNDS OF THE CITY TO PAY FOR ANY DELINQUENT SPECIAL TAXES

PENDING SALE, REINSTATEMENT, OR REDEMPTION OF ANY DELINQUENT PROPERTY AND BE REIMBURSED FROM SUBSEQUENT SPECIAL TAX LEVIES.

Risks of Investment. Investment in the Bonds involves risks that may not be appropriate for some investors. See “SPECIAL RISK FACTORS” for a discussion of special factors that should be considered, in addition to the other matters set forth herein, in considering the investment quality of the Bonds.

Limited Obligation of the Authority. The general fund of the Authority is not liable and the full faith and credit of the Authority or its members, including the City is not pledged for the payment of interest on, or principal of or redemption premiums, if any, on the Bonds or the Local Obligations. The Bonds are not secured by a legal or equitable pledge of or charge, lien or encumbrance upon any property of the Authority or the City or any of its or their income or receipts, except, as to the Bonds, the Revenues, and as to the Local Obligations, the Special Tax Revenues, and amounts in certain funds established under the Indenture as described herein. The Bonds are special limited obligations of the Authority, and neither the Authority nor the City nor any officer or employee thereof shall be liable for the payment of the interest on or principal of or redemption premiums, if any, on the Bonds or the Local Obligations, except, as to the Bonds, from the Revenues, and as to the Local Obligations, from the Special Tax Revenues, and amounts in certain funds established under each Local Obligation Fiscal Agent Agreement as described herein.

Limited Scope of Official Statement. There follows in this Official Statement descriptions of the Authority, the Bonds, the Local Obligations, the Indenture, the Local Obligation Fiscal Agent Agreements and certain other documents. The descriptions and summaries of documents herein do not purport to be comprehensive or definitive, and reference is made to each such document for the complete details of all its respective terms and conditions. All statements herein with respect to such documents are qualified in their entirety by reference to each such document for the complete details of all of their respective terms and conditions. All statements herein with respect to certain rights and remedies are qualified by reference to laws and principles of equity relating to or affecting creditors’ rights generally.

Terms not defined herein shall have the meanings set forth in the Indenture and the Local Obligation Fiscal Agent Agreements, as applicable.

The information and expressions of opinion herein speak only as of the date of this Official Statement and are subject to change without notice. Neither delivery of this Official Statement nor any sale made hereunder nor any future use of this Official Statement shall, under any circumstances, create any implication that there has been no change in the affairs of the Authority or the Improvement Areas since the date hereof.

Item 8.1
Mountain House Page 1116 of 1946 8 SOURCES AND USES OF FUNDS
General. The Bonds are being issued to acquire the Local Obligations, which will be issued by the City concurrently with the issuance of the Bonds by the Authority. Proceeds of the Bonds and the Local Obligations will be used primarily to finance certain public improvements authorized for each Improvement Area. Proceeds will also be used to pay the costs of issuance, and fund the Reserve Fund.

The Bonds. The estimated sources and uses of funds for the Bonds are as follows:

Sources:

Principal Amount of Bonds $
Plus: [Net] Original Issue Premium
Total Sources $
Uses:

Deposit to Purchase Fund(1) $
Deposit to Costs of Issuance Fund(2)
Deposit to Reserve Fund(3)
Total Uses $
(1) To be used to acquire the Local Obligations. Amount is net of the share of the Underwriter’s discount and costs of issuance allocable to the Local Obligations. (2) Costs of issuance include Trustee and Fiscal Agent fees, Bond Counsel fees, Disclosure Counsel fees, printing costs, and other related costs of issuing the Bonds and the Local Obligations.
(3) The Reserve Fund is being funded in an amount equal to the initial Reserve Requirement for the Bonds.

Local Obligations. The estimated sources and uses of funds for the Local Obligations are as follows:

Improvement
Area No. 8
Improvement
Area No. 13 Total
Sources:

Principal Amount of Local Obligations $ $ $
Plus: Share of [Net] Original Issue Premium
Less: Share of UWD and COI
Total Sources $ $ $
Uses:

Deposit to Improvement Fund(1) $ $ $
Total Uses $ $ $
(1) To be held by the Fiscal Agent and used for improvements authorized to be funded by the respective Improvement Area.

Item 8.1
Mountain House Page 1117 of 1946 9 THE BONDS
This section provides summaries of the Bonds and certain provisions of the Indenture.

See “APPENDIX D – Summary of Certain Provisions of Principal Legal Documents” for a more complete summary of the Indenture. Capitalized terms used but not defined in this section have the meanings given in APPENDIX D.

Authority for Issuance
The Bonds are being issued under the Bond Law, the Authority Resolution (which was adopted by the board of directors of the Authority on August [26], 2026) and the Indenture.

Description of the Bonds
General. The Bonds will be dated their date of delivery, and will be issued in the aggregate principal amounts set forth on the inside cover page hereof. The Bonds will bear interest from their dated date at the rates per annum set forth on the inside cover page hereof, payable semiannually on each March 1 and September 1, commencing March 1, 2027 (each, an “Interest Payment Date”), and will mature in the amounts and on the dates set forth on the inside cover page hereof.

The Bonds will be issued in fully registered form in denominations of $5,000 each or any integral multiple thereof.

Payment of Interest and Principal. Interest calculated on the basis of a 360-day year of twelve 30-day months on the Bonds will be payable on each Interest Payment Date to the person whose name appears on the Bond Register as the Owner of such Bond as of the fifteenth calendar day of the month preceding the month in which such Interest Payment Date occurs, whether or not such day is a Business Day (the “Record Date”) immediately preceding each such Interest Payment Date, such interest to be paid by check of the Trustee mailed on such Interest Payment Date by first class mail, postage prepaid, to the Owner at the address of such Owner as it appears on the Bond Register or by wire transfer to an account in the United States of America made on such Interest Payment Date upon instructions of any Owner of $1,000,000 or more in aggregate principal amount of Bonds of a Series provided to the Trustee in writing at least 5 Business Days before the Record Date for such Interest Payment Date.

Principal of and premium (if any) on any Bond will be paid upon presentation and surrender of such Bond, at maturity or the prior redemption of such Bond, at the Trust Office of the Trustee.

Calculation of Interest. Each Bond will bear interest from the Interest Payment Date next preceding the date of authentication thereof, unless (a) it is authenticated after a Record Date and on or before the following Interest Payment Date, in which event it will bear interest from such Interest Payment Date; or (b) it is authenticated on or before the first Record Date, in which event it will bear interest from the Closing Date; provided, however, that if, as of the date of authentication of any Bond, interest on such Bond is in default, such Bond will bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment on such Bond, or from the Closing Date if no interest has been paid or made available for payment.

Item 8.1
Mountain House Page 1118 of 1946 10 Redemption*
Optional Redemption. The Bonds are subject to optional redemption from any source of available funds (other than Prepayments of the Special Tax by property owners), in whole or in part among maturities as specified by the City and by lot within a maturity, on any date on and after September 1, 20__ at the following respective redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed), plus accrued interest thereon to the date of redemption:

Redemption Dates
Redemption
Price
September 1, 20__ through August 31, 20__ 103%
September 1, 20__ through August 31, 20__ 102
September 1, 20__ through August 31, 20__ 101
September 1, 20__ and any date thereafter 100
Mandatory Redemption from Prepayments. The Bonds are subject to mandatory special redemption on any Interest Payment Date from proceeds of early redemption of Local Obligations from prepayment of Special Taxes, in whole or in part, from maturities corresponding proportionately to the maturities of the Local Obligations simultaneously redeemed, at the principal amount thereof, plus a premium expressed below as a percentage of the principal amount so redeemed, plus accrued interest to the date of redemption thereof:

Redemption Date Redemption Price
Interest Payment Dates through March 1, _____ 103%
September 1, _____ and March 1, _____ 102
September 1, _____ and March 1, _____ 101
September 1, _____ and thereafter 100
The proceeds of any such prepayment shall be deposited in the Prepayment Account of the Bond Fund and applied by the Fiscal Agent under each Local Obligation Fiscal Agent Agreement to pay the redemption price of the Local Obligations, which will in turn be used to pay the redemption price on the Bonds under the Indenture.

See “SPECIAL RISK FACTORS – Potential Early Redemption of Bonds from Prepayments” for a discussion of the potential for the Bonds to be priced with original issue premium and then be redeemed from Special Tax prepayments prior to maturity.

Mandatory Sinking Fund Redemption. The Bonds maturing September 1, 20__ and September 1, 20__ (the “Term Bond”) are subject to mandatory sinking payment redemption in part on September 1, 20__ and September 1, 20__, respectively, and on each September 1 thereafter to maturity, by lot, at a redemption price equal to 100% of the principal amount thereof to be redeemed, without premium, in the aggregate respective principal amounts as set forth in the following tables:
* Preliminary; subject to change.

Item 8.1
Mountain House Page 1119 of 1946 11 Term Bonds Maturing September 1, 20__
Mandatory
Redemption Date
(Sept. 1)
Sinking Fund
Payment
(maturity)
Term Bonds Maturing September 1, 20__
Mandatory
Redemption Date
(Sept. 1)
Sinking Fund
Payment
(maturity)
The amounts in the foregoing tables will be reduced pro rata, in order to maintain substantially uniform debt service, as a result of any prior partial optional redemption or mandatory redemption of the Bonds.

Purchase In Lieu of Redemption. In lieu of redemption, funds may be used and withdrawn by the Trustee for purchase of Outstanding Bonds, upon the filing with the Trustee of an Officer’s Certificate requesting such purchase, at public or private sale as and when, and at such prices (including brokerage and other charges) as such Officer’s Certificate may provide, but in no event may Bonds be purchased at a price in excess of the principal amount thereof, plus interest accrued to the date of purchase.

Notice of Redemption. The Trustee on behalf, and at the expense, of the Authority will mail (by first class mail, postage prepaid) notice of any redemption to the respective Owners of any Bonds designated for redemption at their respective addresses appearing on the Bond Register, and to the Securities Depositories and to the Municipal Securities Rulemaking Board, at least 20 days but not more than 60 days prior to the date fixed for redemption. Neither failure to receive any such notice so mailed nor any defect therein will affect the validity of the proceedings for the redemption of such Bonds or the cessation of the accrual of interest thereon. Such notice will state the date of the notice, the redemption date, the redemption place and the redemption price and will designate the CUSIP numbers, the Bond numbers and the maturity or maturities (in the event of redemption of all of the Bonds of such maturity or maturities in whole) of the Bonds to be redeemed, and will require that such Bonds be then surrendered at the Trust Office of the Trustee for redemption at the redemption price, giving notice also that further interest on such Bonds will not accrue after the redemption date.

In addition to the foregoing notice, further notice will be given by the Trustee in said form by first class mail to any Bondowner whose Bond has been called for redemption but who has failed to submit his Bond for payment by the date which is sixty days after the redemption date, but no defect in said further notice nor any failure to give or receive all or any portion of such further notice will in any manner defeat the effectiveness of a call for redemption.

Item 8.1
Mountain House Page 1120 of 1946 12 Rescission of Redemption Notice. Any such redemption notice may specify that redemption on the specified date will be subject to receipt by the Authority of moneys sufficient to cause such redemption (and will specify the proposed source of such moneys), and neither the Authority nor the Trustee will have any liability to the Owners or any other party as a result of its failure to redeem the Bonds as a result of insufficient moneys. The Authority will have the right to rescind any redemption by written notice to the Trustee on or prior to the date fixed for redemption. Any notice of redemption will be cancelled and annulled if for any reason funds are not available on the date fixed for redemption for the payment in full of the Bonds then called for redemption, and such cancellation will not constitute an Event of Default. The Trustee will mail notice of rescission of redemption in the same manner notice of redemption was originally provided.

Selection of Bonds of a Maturity for Redemption. Unless otherwise provided under the Indenture, whenever provision is made in the Indenture or in the applicable Supplemental Indenture for the redemption of fewer than all of the Bonds of a maturity, the Trustee will select the Bonds to be redeemed from all Bonds of such maturity not previously called for redemption, by lot in any manner which the Trustee in its sole discretion will deem appropriate and fair. For purposes of such selection, all Bonds will be deemed to be comprised of separate $5,000 authorized denominations, and such separate authorized denominations will be treated as separate Bonds which may be separately redeemed.

Partial Redemption of Bonds. In the event only a portion of any Bond is called for redemption, then upon surrender of such Bond the Authority will execute and the Trustee will authenticate and deliver to the Owner thereof, at the expense of the Authority, a new Bond or Bonds of the same maturity date, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond to be redeemed.

Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the principal of and interest (and premium, if any) on the Bonds so called for redemption will have been duly provided, such Bonds so called will cease to be entitled to any benefit under the Indenture other than the right to receive payment of the redemption price, and no interest will accrue on such Bonds from and after the redemption date specified in such notice.

Certification of Independent Financial Consultant. In connection with a special mandatory redemption of Bonds, the Authority will deliver to the Trustee a certificate of an Independent Accountant verifying that, following such redemption of the Bonds, the principal and interest generated from the remaining Local Obligations is adequate to make the timely payment of principal and interest due on the Bonds that will remain Outstanding following such special mandatory redemption.

Book-Entry Only System
General. The Bonds will be issued as fully registered bonds, registered in the name of Cede & Co. as nominee of The Depository Trust Company, New York, New York (“DTC”), and will be available to actual purchasers of the Bonds (the “Beneficial Owners”) in the denominations set forth above, under the book-entry system maintained by DTC, only through brokers and dealers who are or act through DTC Participants (as defined in this Official Statement) as described in this Official Statement. Beneficial Owners will not be entitled to Item 8.1
Mountain House Page 1121 of 1946 13 receive physical delivery of the Bonds. See “APPENDIX G – DTC and the Book-Entry-Only System.”
If the book-entry-only system is no longer used with respect to the Bonds, the Bonds will be registered and transferred in accordance with the Indenture. See “–Registration, Transfer and Exchange of Bonds” below.

Payments Made to DTC. While the Bonds are subject to the book-entry system, the principal and interest with respect to a Bond will be paid by the Trustee to DTC, which in turn is obligated to remit such payment to its DTC Participants for subsequent disbursement to Beneficial Owners of the Bonds, as described in “APPENDIX G – DTC and the Book-Entry-Only System.”
Transfer or Exchange of Bonds
Bond Register. The Trustee will keep or cause to be kept at its Trust Office sufficient records for the registration and transfer of the Bonds, which will be the Bond Register and will at all times during regular business hours be open to inspection by the Authority upon reasonable notice; and, upon presentation for such purpose, the Trustee will, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said records, Bonds as provided under the Indenture.

Transfer of Bonds. Subject to the book-entry only provisions of the Indenture, any Bond may in accordance with its terms, be transferred, upon the Bond Register, by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Bond for cancellation, accompanied by delivery of a written instrument of transfer in a form approved by the Trustee, duly executed.

Whenever any Bond is surrendered for transfer, the Authority will execute and the Trustee will thereupon authenticate and deliver to the transferee a new Bond or Bonds of like Series, tenor, maturity and aggregate principal amount. No Bonds selected for redemption will be subject to transfer, nor will any Bond be subject to transfer during the 15 days prior to the selection of Bonds for redemption.

The cost of printing any Bonds and any services rendered or any expenses incurred by the Trustee in connection with any transfer or exchange will be paid by the Authority. However, the Owners of the Bonds will be required to pay any tax or other governmental charge required to be paid for any exchange or registration of transfer and the Owners of the Bonds will be required to pay the reasonable fees and expenses of the Trustee and Authority in connection with the replacement of any mutilated, lost or stolen Bonds.

Exchange of Bonds. Bonds may be exchanged at the Trust Office of the Trustee for Bonds of the same Series, tenor and maturity and of other authorized denominations. No Bonds selected for redemption will be subject to exchange, nor will any Bond be subject to exchange during the 15 days prior to the selection of Bonds for redemption. The Owners of the Bonds will be required to pay any tax or other governmental charge required to be paid for any exchange and the Owners of the Bonds will be required to pay the reasonable fees and expenses of the Trustee and Authority in connection with the exchange of any Bonds.

Item 8.1
Mountain House Page 1122 of 1946 14 DEBT SERVICE SCHEDULES
The Bonds. The table below presents the debt service schedule for the Bonds, assuming no special redemptions are made. The scheduled aggregate debt service on the Bonds is approximately equal to the aggregate of the scheduled debt service on the Improvement Areas Local Obligations.

Annual Debt Service Schedule for the Bonds
Year Ending
September 1 Principal Interest Total
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
TOTAL
________
Source: Piper Sandler & Co.

Item 8.1
Mountain House Page 1123 of 1946 15 The Local Obligations. The following table summarizes the debt service payments to be received by the Authority as the result of its ownership of the Local Obligations. The Local Obligations have different debt service profiles. Consequently, the source of security for debt service on the Bonds, and the concentration of the revenues derived from the different Improvement Areas, will change over time as the Bonds mature.

Annual Debt Service Schedules for the Local Obligations* Year Ending
September 1
Improvement
Area No. 8
Bonds
Improvement
Area No. 13
Bonds
Total Local
Obligations
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
TOTAL
________
*Preliminary, subject to change.

Source: Piper Sandler & Co.

Item 8.1
Mountain House Page 1124 of 1946 16 The Local Obligations. The following tables summarize the projected debt service coverage for each of the Improvement Areas for Fiscal Year 2026-27, based on the expected land uses at buildout. Development is ongoing in each Improvement Area.

Improvement Area No. 8 of
Community Facilities District No. 2024-1
(Public Facilities and Services)
Projected Debt Service Coverage(1)(2)
Year Ending
September 1
Buildout
Maximum
Facilities
Special Tax(3)
Priority
Administration(4)*
Series 2025
Debt Service
Series 2026
Net Debt Service*
Total Debt
Service*
Debt Service
Coverage*
2027(5) $384,242 ($39,519) $311,506 $0 $311,506 110.66% 2028 934,060 (44,737) 315,906 266,713 582,619 152.64
2029 952,741 (45,632) 325,106 271,113 596,219 152.14
2030 971,796 (46,545) 328,906 275,313 604,219 153.13
2031 991,232 (47,475) 337,506 279,313 616,819 153.00
2032 1,011,056 (48,425) 345,256 283,113 628,369 153.20
2033 1,031,278 (49,393) 352,506 291,363 643,869 152.50
2034 1,051,903 (50,381) 359,256 299,113 658,369 152.12
2035 1,072,941 (51,389) 365,506 301,363 666,869 153.19
2036 1,094,400 (52,417) 371,256 313,363 684,619 152.20
2037 1,116,288 (53,465) 381,506 314,613 696,119 152.68
2038 1,138,614 (54,534) 386,006 325,613 711,619 152.34
2039 1,161,386 (55,625) 395,006 330,863 725,869 152.34
2040 1,184,614 (56,738) 403,256 335,613 738,869 152.65
2041 1,208,306 (57,872) 415,756 339,863 755,619 152.25
2042 1,232,472 (59,030) 417,256 348,613 765,869 153.22
2043 1,257,122 (60,210) 428,256 356,613 784,869 152.50
2044 1,282,264 (61,415) 433,256 363,863 797,119 153.16
2045 1,307,909 (62,643) 442,506 370,363 812,869 153.19
2046 1,334,068 (63,896) 450,756 381,113 831,869 152.69
2047 1,360,749 (65,174) 462,688 385,863 848,550 152.68
2048 1,387,964 (66,477) 473,338 389,588 862,925 153.14
2049 1,415,723 (67,807) 482,706 397,544 880,250 153.13
2050 1,444,038 (69,163) 490,794 409,475 900,269 152.72
2051 1,472,918 (70,546) 502,600 415,125 917,725 152.81
2052 1,502,377 (71,957) 512,388 424,750 937,138 152.64
2053 1,532,424 (73,396) 520,600 432,688 953,288 153.05
2054 1,563,073 (74,864) 532,238 444,313 976,550 152.39
2055 1,594,334 (76,361) 542,038 449,363 991,400 153.11
2056 1,626,221 (77,889) -- 463,100 463,100 334.34
___________________
* Preliminary, subject to change.
(1) Pursuant to Section 53321(d) of the Government Code, the special tax levied against any assessor's parcel for which an occupancy permit for private residential use has been issued shall not be increased as a consequence of delinquency or default by the owner of any other assessor's parcel within the District by more than 10% above the amount that would have been levied in the fiscal year had there never been any such delinquencies or defaults.
(2) Based on currently-expected land uses in the Improvement Area. Subject to change pursuant to Section D of the RMA for the Improvement Area.
(3) Includes Maximum Facilities Special Tax revenues based on the recorded final maps. (4) As defined in the Fiscal Agent Agreement. Equals $43,000 in FY 2025-26 and escalates by two percent per year thereafter. (5) Represents the actual FY 2026-27 Facilities Special Tax levy of $384,242.42, which includes the debt service due in 2027 on the Series 2025 Special Tax Bonds in the amount of $311,506.26, estimated administrative expenses in the amount of $39,519.00, and authorized facilities in the amount of $33,217.16.

Sources: Piper Sandler & Co.; Goodwin Consulting Group, Inc.

Item 8.1
Mountain House Page 1125 of 1946 17 Improvement Area No. 13 of
Community Facilities District No. 2024-1
(Public Facilities and Services)
Projected Debt Service Coverage(1)(2)
Year
Ending
September 1
Buildout
Maximum
Facilities
Special Tax(3)
Priority
Administration(4)*
Series 2026
Debt Service*
Debt Service
Coverage*
2028 $937,812 ($33,000) $283,344 319.33%
2029 956,568 (33,660) 287,744 320.74
2030 975,700 (34,333) 291,944 322.45
2031 995,214 (35,020) 300,944 319.06
2032 1,015,118 (35,720) 304,544 321.60
2033 1,035,420 (36,435) 312,544 319.63
2034 1,056,129 (37,163) 320,044 318.38
2035 1,077,251 (37,907) 322,044 322.73
2036 1,098,796 (38,665) 328,794 322.43
2037 1,120,772 (39,438) 335,044 322.74
2038 1,143,188 (40,227) 345,794 318.96
2039 1,166,051 (41,031) 350,794 320.71
2040 1,189,373 (41,852) 355,294 322.98
2041 1,213,160 (42,689) 364,294 321.30
2042 1,237,423 (43,543) 372,544 320.47
2043 1,262,172 (44,414) 380,044 320.43
2044 1,287,415 (45,302) 386,794 321.13
2045 1,313,163 (46,208) 392,794 322.55
2046 1,339,427 (47,132) 403,044 320.63
2047 1,366,215 (48,075) 412,294 319.71
2048 1,393,539 (49,036) 420,250 319.93
2049 1,421,410 (50,017) 427,181 321.03
2050 1,449,838 (51,017) 438,088 319.30
2051 1,478,835 (52,038) 442,713 322.29
2052 1,508,412 (53,078) 451,313 322.47
2053 1,538,580 (54,140) 463,200 320.47
2054 1,569,352 (55,223) 473,513 319.77
2055 1,600,739 (56,327) 482,250 320.25
2056 1,632,754 (57,454) 489,413 321.88
___________________
* Preliminary, subject to change.
(1) Pursuant to Section 53321(d) of the Government Code, the special tax levied against any assessor's parcel for which an occupancy permit for private residential use has been issued shall not be increased as a consequence of delinquency or default by the owner of any other assessor's parcel within the District by more than 10% above the amount that would have been levied in the fiscal year had there never been any such delinquencies or defaults. (2) Based on currently-expected land uses in the Improvement Area. Subject to change pursuant to Section D of the RMA for the Improvement Area.
(3) Includes Maximum Facilities Special Tax revenues based on the recorded final map. (4) As defined in the Fiscal Agent Agreement. Equals $33,000 in FY 2027-28 and escalates by two percent per year thereafter.

Sources: Piper Sandler & Co.; Goodwin Consulting Group, Inc.

Item 8.1
Mountain House Page 1126 of 1946 18 SECURITY AND SOURCES OF PAYMENT FOR THE BONDS
The Bonds are special limited obligations of the Authority, payable from and secured by Revenues (as defined herein), consisting primarily of payments received by the Authority from the City on the Local Obligations. Scheduled payments under the Local Obligations collectively are sufficient to provide the Authority with money to pay the principal of and interest on the Bonds when due. This section provides summaries of the security for the Bonds and certain provisions of the Indenture and each Local Obligation Fiscal Agent Agreement. See “APPENDIX D – Summary of Certain Provisions of Principal Legal Documents” for a more complete summary of the Indenture or the respective Local Obligation Fiscal Agent Agreement.

Capitalized terms used but not defined in this section have the meanings given in APPENDIX D.

Limited Obligation
In order to secure the payment of the principal of, premium, if any, and interest on the Bonds in accordance with their terms and the provisions of the Indenture, and subject only to the provisions of the Indenture permitting the application thereof for the purposes and on the terms and conditions set forth therein, the Authority pledges all of the Revenues and any other amounts (including proceeds of the sale of Bonds) held in any fund or account established pursuant to the Indenture, other than amounts on deposit in the Rebate Fund or Surplus Fund.

This pledge constitutes a first pledge of and charge and lien upon such assets for the payment of the Bonds in accordance with their terms and will be valid and binding from and after issuance of the Bonds, without any physical delivery thereof or further act. The pledge is also irrevocable until all of the bonds issued under the Indenture are no longer Outstanding.

Under the Indenture, the Authority unconditionally transfers, assigns, and sets over to the Trustee for the benefit of the Owners, without recourse, all of the right, title and interest of the Authority in the Local Obligations. Each series of Local Obligations are a limited obligation of the City and secured by an irrevocable pledge of certain revenues of the City, consisting primarily of monies received by the City as payment of special taxes levied against property within each respective Improvement Area which secures such Local Obligations. Scheduled payments under the Local Obligations are sufficient to provide the Authority with money to pay the principal of, premium, if any, and interest on the Bonds when due.

No Special Taxes or funds of the Improvement Areas are pledged to pay the Local Obligations of the other Improvement Areas.

All obligations of the Authority under the Indenture and the Bonds are special obligations of the Authority, payable solely from and secured by Revenues and the amounts in the funds established by the Indenture (except amounts in the Rebate Fund and Surplus Fund). All obligations of the City under each Local Obligation Fiscal Agent Agreement are not general obligations of the City, but are limited obligations, payable solely from the Special Taxes of the applicable Improvement Area and the funds pledged therefor under such Local Obligation Fiscal Agent Agreement. Neither the faith and credit of the City nor of the State of California or any political subdivision thereof is pledged to the payment of the Local Obligations.

The Local Obligations are payable solely from and secured solely by the Special Taxes of the applicable Improvement Area, net of administrative expenses, and the amounts in the Special Tax Fund created with respect to such Local Obligations (the “Special Tax Fund”) under the respective Local Obligation Fiscal Agent Agreement. The City is not obligated to advance available surplus funds from the City treasury to cure any deficiency in any Special Tax Item 8.1
Mountain House Page 1127 of 1946 19 Fund, provided, however, the City is not prevented, in its sole discretion, from so advancing funds. Moneys in each respective Improvement Area Special Tax Fund are available only for use with respect to the series of Local Obligations to which such Special Tax Fund relates.

Revenues; Flow of Funds
Definition of Revenues. The Bonds are secured by a lien on and pledge of Revenues made in the Indenture, which consist primarily of amounts received by the Authority as the result of its ownership of the Local Obligations.

The Indenture defines “Revenues” as follows:
(a) all amounts received from the Local Obligations;
(b) any proceeds of the Bonds originally deposited with the Trustee and all moneys deposited and held from time to time by the Trustee in the funds and accounts established under the Indenture with respect to the Bonds (other than the Rebate Fund and the Surplus Fund); and
(c) investment income with respect to any moneys held by the Trustee in the funds and accounts established under the Indenture with respect to the Bonds (other than investment income on moneys held in the Rebate Fund and the Surplus Fund).

Pledge of Revenues. The Bonds are secured by a first lien on and pledge of all of the Revenues. Under the Indenture, all of the Revenues and the amounts in the funds established by the Indenture are pledged by the Authority first to secure the payment of the principal of and interest on the Bonds, all in accordance with their terms and the provisions of the Indenture.

Said pledge constitutes a lien on and security interest in the Revenues upon the physical delivery thereof. In the Indenture, the Authority transfers in trust and assigns to the Trustee, for the benefit of the Owners from time to time of the Bonds, all of the Revenues and all of the right, title and interest of the Authority in the Local Obligations. The Trustee shall be entitled to and shall collect and receive all of the Revenues, and any Revenues collected or received by the Authority as the agent of the Trustee shall be deemed to be held, and to have been collected or received, by the Authority and shall be paid by the Authority to the Trustee. The Trustee also is entitled to and may take all steps, actions and proceedings reasonably necessary in its judgment to enforce, either jointly with the Authority or separately, all of the rights of the Authority and all of the obligations of the City under the Local Obligations.

Collection by the Trustee. The Trustee will collect and receive all of the Revenues, and any Revenues collected or received by the Authority will be deemed to be held, and to have been collected or received, by the Authority as the agent of the Trustee and will forthwith be paid by the Authority to the Trustee. Under the Indenture, the Trustee is directed to establish, maintain and hold in trust a special fund designated as the “Revenue Fund” and deposit the Revenues, when and as received by the Trustee, therein; provided that the Trustee shall deposit any Revenues that represent payment of the redemption price of any Local Obligations into the Redemption Fund. All moneys at any time held in the Revenue Fund shall be held in trust for the benefit of the Owners and shall be disbursed, allocated, and applied solely for payment of the Bonds and for any other uses and purposes set forth in the Indenture. Subject to the provisions of the Indenture regarding the remedies and rights of the Bond Owners, the Trustee is also entitled to and will take all steps, actions and proceedings reasonably necessary Item 8.1
Mountain House Page 1128 of 1946 20 in its judgment to enforce, either jointly with the Authority or separately, all of the rights of the Authority and all of the obligations of the City under the Local Obligations.

Application of Revenues. On each Interest Payment Date and date for redemption of the Bonds, the Trustee will transfer from the Revenue Fund, and deposit into the following respective accounts for the Bonds, the following amounts in the following order of priority, the requirements of each such account (including the making up of any deficiencies in any such account resulting from lack of Revenues sufficient to make any earlier required deposit) at the time of deposit to be satisfied before any transfer is made to any account subsequent in priority:

Interest Account. On each Interest Payment Date and redemption date, the Trustee will deposit in the Interest Account an amount required to cause the aggregate amount on deposit in the Interest Account to equal the amount of interest becoming due and payable on such Interest Payment Date on all Outstanding Bonds or to be paid on the Bonds being redeemed on such date.

No deposit need be made into the Interest Account if the amount contained in such account is at least equal to the interest becoming due and payable upon all Outstanding Bonds on the next succeeding Interest Payment Date or redemption date, as applicable.

All moneys in the Interest Account will be used and withdrawn by the Trustee solely for the purpose of paying interest on the Bonds as it becomes due and payable (including accrued interest on any Bonds redeemed prior to maturity).

If the amounts on deposit in the Interest Account on any Interest Payment Date or redemption date are insufficient for any reason to pay the aggregate amount of interest then coming due and payable on the Outstanding Bonds, the Trustee will apply such amounts to the payment of interest on each of the Outstanding Bonds on a pro rata basis.

Principal Account. On each Interest Payment Date and redemption date on which the principal of the Bonds will be payable, the Trustee will deposit in the Principal Account an amount required to cause the aggregate amount on deposit in the Principal Account to equal the principal amount of, and premium (if any) on, the Bonds coming due and payable on such Interest Payment Date, or required to be redeemed on such date; provided, however, that no amount will be deposited to effect a mandatory special redemption unless the Trustee has first received a certificate of an Independent Accountant certifying that such deposit to effect the redemption of the Bonds will not impair the ability of the Authority to make timely payment of the principal of and interest on the Bonds, assuming for such purposes that the City continues to make timely payments on all Local Obligations not then in default.

Reserve Fund. At such time as sufficient funds are in the Revenue Fund to pay the interest and principal becoming due on the Bonds on the next Interest Payment Date, the Trustee shall forward to the Authority the amount, if any, required to replenish the Reserve Fund to the Reserve Requirement, to the extent funds are available.

All moneys in the Principal Account will be used and withdrawn by the Trustee solely for the purpose of (i) paying the principal of the Bonds at the maturity thereof or (ii) paying the principal of any Bonds upon the redemption thereof.

Deficiencies. If on any Interest Payment Date or date for redemption the amount on deposit in the Revenue Fund is inadequate to make the transfers described above as a result of Item 8.1
Mountain House Page 1129 of 1946 21 a payment default on an issue of Local Obligations, the Trustee will immediately notify the City of the amount needed to make the required deposits under “– Application of Revenues” above.

In the event that within 5 Business Days of delivering such notice the Trustee receives additional payments from the City to cure such shortfall, the Trustee will deposit such amounts to the account designated in writing by the City.

Deposit into Rebate Fund. On each Interest Payment Date after making the transfers described above, upon receipt of a Request of the Authority to do so, the Trustee will transfer from the Revenue Fund to the Rebate Fund for deposit in the accounts in the Rebate Fund the amounts specified in such Request.

Surplus Fund. On September 1 of each year, after making the deposits described above, the Trustee will transfer all amounts remaining on deposit in the Revenue Fund to the Surplus Fund.

Reserve Fund
Under the Indenture the Trustee shall establish and maintain a debt service reserve fund (the “Reserve Fund”) for the Bonds in the initial amount of $________, which is the “Reserve Requirement,” defined as an amount which is equal to the lesser of (a) Maximum Annual Debt Service on the Bonds, (b) 125% of average Annual Debt Service for the Bonds, (c) 10% of the original principal amount of the Bonds provided, that—
a. the Reserve Requirement for the Bonds shall not increase after the date of issuance of the Bonds;
b. in no event shall the City be obligated to deposit an amount in any reserve account in excess of the amount permitted by the applicable provisions of the Code to be so deposited from the proceeds of tax-exempt bonds without having to restrict the yield of any investment purchased with any portion of such deposit and, if the amount of any such deposit is so limited, the Reserve Requirement shall be only the amount of such deposit as permitted by the Code; and
c. the City may meet all or a portion of the Reserve Requirement with respect to any series of Bonds by depositing a Qualified Reserve Fund Credit Instrument.

A portion of the proceeds of each series of Local Obligations will be contributed to the initial deposit into the Reserve Fund. If the amounts in the Interest Account or the Principal Account of the Revenue Fund are insufficient to pay the scheduled principal of or interest on the Bonds when due, the Trustee shall draw on the Reserve Fund, to the extent funds are available, for deposit in the Interest Account and the Principal Account, as applicable, in an amount necessary for such purposes.

In the event of a withdrawal of amounts from the Reserve Fund to make payments to the Interest Account or the Principal Account, the Trustee shall immediately notify the Finance Director of the City and the Special Tax Administrator of the need to increase the applicable Special Tax levy in future year(s). Upon receipt of any such moneys, the Trustee shall deposit in the Reserve Fund moneys necessary to restore the amount in the Reserve Fund to the Reserve Requirement, but only from the Revenues available to restore said amounts. To the extent that the transfer of such moneys from the Reserve Fund results in the amount on deposit in the Reserve Fund to be below the Reserve Requirement, the Authority is not obligated to pay the Item 8.1
Mountain House Page 1130 of 1946 22 Local Obligations, or supplement the Reserve Fund, however, draws on the Reserve Fund are required to be replenished by special taxes collected by the City for the Improvement Area or Improvement Areas whose deficient special taxes caused the withdrawal from the Reserve Fund to be needed.

Amounts transferred from the Reserve Fund to the Interest Account and the Principal Account pursuant to above, as a result of a deficiency in the collection of the Special Taxes, shall be restored by the Improvement Area for which the deficiency is attributable, from the collection of delinquent installments on the Special Taxes levied for such Improvement Area, whether in due course or by judicial foreclosure proceedings or otherwise, as soon as is reasonably possible following receipt by the Improvement Area of such delinquent installments, and from amounts which the City is obligated to include in the annual levy of the Special Tax in subsequent Fiscal Years.

The Authority has the right at any time to cause the Trustee to release funds from the Reserve Fund, in whole or in part, by tendering to the Trustee a Qualified Reserve Fund Credit Instrument (as defined in the Indenture) and an opinion of Bond Counsel stating that such release will not, of itself, cause the portion of the interest on the Bonds to become includable in gross income for purposes of federal income taxation.

Surplus Fund
Any amounts transferred to the Surplus Fund will no longer be considered Revenues and are not pledged to repay the Bonds. So long as Local Obligations are outstanding, on September 1 of each year, after setting aside any amount specified in a Request of the Authority as necessary to pay Administrative Expenses, any moneys remaining in the Surplus Fund will be transferred to the City and used for any lawful purpose.

Additional Local Obligations and Authority Bonds
Additional Authority Bonds for Refunding Only. The Authority may by Supplemental Indenture establish one or more additional Series of Bonds (“Additional Bonds”) secured on parity with the Bonds, provided that such Additional Bonds are issued only for the purpose of facilitating a refunding of the Local Obligations, and that after the issuance of the Additional Local Obligations, the Revenues to be received from all the Local Obligations supporting payment of the Bonds and any Additional Bonds will be sufficient in time and amount to satisfy the debt service requirements on all Bonds and Additional Bonds until the final maturity date of the Bonds.

Additional Local Obligations for Refunding or New Money Purposes. Under each Local Obligation Fiscal Agent Agreement, the City may issue additional local obligations on parity for both refunding and “new money” purposes. The maximum bonded indebtedness authorized for Improvement Area No. 8 is $29,400,000 and the 2025 Bonds were issued in the amount of $5,805,000. The maximum bonded indebtedness authorized for Improvement Area No. 13 is $30,110,000 and no bonds have been previously issued.

The City may, by a Supplemental Fiscal Agent Agreement, authorize the issuance of one or more additional series of special tax bonds (the “Additional Bonds”), payable from Special Taxes and secured by the Special Tax Revenues equally and ratably with the respective Local Obligations, subject to conditions set forth in the respective Local Obligations Fiscal Agent Agreement, including the following.

Item 8.1
Mountain House Page 1131 of 1946 23 (i) For each Bond Year that the Additional Bonds will be Outstanding, projected net maximum Special Tax Revenues (maximum Special Taxes authorized to be levied, net of Priority Administrative Expenses) in each Fiscal Year are equal to or greater than 110% of Debt Service due in the Bond Year that begins in the corresponding Fiscal Year.
(ii) After giving effect to the issuance of the Additional Bonds, the aggregate value of all parcels in the Improvement Area subject to the Special Tax, which value shall include the then existing improvements and any facilities to be constructed or acquired with the proceeds of the Additional Bonds, as determined by an MAI appraisal or the assessed value of such parcels as shown on the then current County tax roll, or by a combination of both methods, is at least 4.00 times the sum of (A) the aggregate principal amount of the Additional Bonds proposed to be issued and bonds then outstanding plus (B) the aggregate principal amount of any bonds then outstanding and payable from assessments which are a lien against property in the Improvement Area, plus (C) a portion of the aggregate principal amount of all bonds issued under the MelloRoos Act then outstanding, and payable at least partially from special taxes to be levied on parcels of land subject to the Special Tax within the Improvement Area (the “Other Mello-Roos Bonds”) equal to the aggregate principal amount of the Other Mello-Roos Bonds multiplied by a fraction, the numerator of which is the amount of special taxes levied for the Other Mello-Roos Bonds on parcels of land within the Improvement Area subject to the Special Tax, and the denominator of which is the total amount of special taxes levied for the Other Mello-Roos Bonds on all parcels of land subject to the Special Tax within the Improvement Area against which the special taxes are levied to pay the Other Mello-Roos Bonds (such fraction to be determined based upon the special taxes which could be levied the year in which the change is to occur), based upon information from the most recent available fiscal year.

Additional Bonds may be issued to refund any outstanding bonds without meeting the foregoing conditions for savings and will not count against the maximum bonded indebtedness authorized for the Improvement Area.

Security for the Local Obligations
The provisions of the Local Obligation Fiscal Agent Agreement for each Improvement Area with respect to security and sources of payment for the respective Local Obligations are substantially identical, and will be described together in this section except as otherwise set forth below. This section contains only a brief description of those provisions of each Local Obligation Fiscal Agent Agreement, which are further described in APPENDIX D. Capitalized terms used but not defined in this section have the meanings given in APPENDIX D.

The Local Obligations constitute a limited obligation of the City that is secured by a first lien on and pledge of, and is payable solely from, Special Tax Revenues (defined below) collected in each respective Improvement Area and amounts deposited by the City in each Special Tax Fund. The City’s limited obligation to pay the principal of and interest on the Local Obligations from Special Tax Revenues collected in each respective Improvement Area and amounts in each Special Tax Fund is absolute and unconditional.

The Local Obligations do not constitute a legal or equitable pledge, charge, lien or encumbrance upon the respective Improvement Area’s or City’s property, or upon any of its Item 8.1
Mountain House Page 1132 of 1946 24 income, receipts or revenues, except the Special Tax Revenues collected in the respective Improvement Area and other amounts in the respective Special Tax Fund.

Except for the Special Tax Revenues for each Improvement Area, neither the credit nor the taxing power of the City is pledged for the payment of the Local Obligations or related interest, and no Owner of the Bonds or Local Obligations may compel the exercise of taxing power by the City or the forfeiture of any of its property.

The principal of and interest on the Local Obligations are not a debt of the City, the State of California or any of its political subdivisions within the meaning of any constitutional or statutory limitation or restriction.

Special Taxes; Special Tax Revenues. The Special Taxes for each Improvement Area are levied and collected according to the special tax formula contained in the rate and method of apportionment established for that respective Improvement Area. “Special Taxes” means the “Facilities Special Tax” as defined in the Rate and Method, levied within the respective Improvement Area pursuant to the Mello-Roos Act. See “– Special Tax Methodology,” APPENDIX A-3 and APPENDIX B-3.

The “Special Tax Revenues” pledged by the City to the Local Obligations is defined in each Local Obligation Fiscal Agent Agreement as the proceeds of the Special Taxes annually received by the City, excluding any interest and penalties thereon collected in connection with delinquent Special Taxes, less an amount equal to the Administrative Expense Priority, including all scheduled payments and delinquent payments thereof, and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes.

The “Administrative Expense Priority” (which, for Fiscal Year 2026-27, is $39,519 for Improvement Area No. 8, and for Fiscal Year 2027-28, is $33,000 for Improvement Area No. 13, in each case the Administrative Expense Priority may escalate by 2% each Fiscal Year).

Allocation of Special Tax Revenues. Except for the portion of any Prepayment to be deposited to the Redemption Account, the Fiscal Agent will, on each date on which the Special Tax Revenues are received from the City, deposit the Special Tax Revenues in each Special Tax Fund to be held in trust for the Authority, as sole Owner of the Local Obligations. The Fiscal Agent will transfer the Special Tax Revenues on deposit in each Special Tax Fund on the dates and in the amounts set forth in each Local Obligation Fiscal Agent Agreement, in the following order of priority, to:
(1) the Interest Account of each Special Tax Fund;
(2) the Principal Account of each Special Tax Fund;
(3) the Redemption Account of each Special Tax Fund;
(4) each Surplus Fund.

No Debt Service Reserve for Local Obligations. A Reserve Fund for the Bonds is established under the Indenture and there is no separate reserve fund for the Local Obligations.

Each Improvement Area is required to contribute to the Reserve Fund established for the Bonds. See “– Reserve Fund” above.

In the event of a draw on the Reserve Fund Special Tax levies will be increased, but not above the maximum levy allowable, to the extent the Authority Trustee has notified the City that, due to an insufficiency of amounts forwarded to the Authority as owner of the Local Obligations a draw on the Reserve Fund established for the Bonds is required under the Indenture, provided however, that no Improvement Area is responsible for Reserve Fund draws or deficiencies Item 8.1
Mountain House Page 1133 of 1946 25 attributable to the other Improvement Area. Moneys so deposited shall be disbursed to the Trustee for replenishment of the Reserve Fund in accordance with the Indenture.

No series of Local Obligations is secured by Special Taxes from the other Improvement Area; the Special Taxes of each Improvement Area are available only to pay debt service on the respective Improvement Area Local Obligations.

Parity Local Obligations. Under each Local Obligation Fiscal Agent Agreement, the City covenants that it will not mortgage or otherwise encumber, pledge or place any charge upon any of the Special Tax Revenues (except as provided in each Local Obligation Fiscal Agent Agreement), and will not issue any obligation or security having a lien or charge upon the Special Tax Revenues superior to or on a parity with the Local Obligations, except for parity bonds issued for refunding purposes. See “– Additional Local Obligations and Bonds for Refunding Only” above.

Nothing in either Local Obligation Fiscal Agent Agreement prevents the City from issuing or incurring indebtedness payable from a pledge of Special Tax Revenues that is subordinate in all respects to the pledge of Special Tax Revenues to repay the related Local Obligations.

Priority of Lien. Each installment of the Special Taxes, and any interest and penalties on the Special Taxes, constitutes a lien on the parcel of land on which it was imposed until paid.

This lien is co-equal to and independent of the lien for general taxes, the lien of any other community facilities district special taxes and special assessment liens. See “VALUE OF PROPERTY WITHIN THE IMPROVEMENT AREAS,” APPENDIX A-1 and APPENDIX B-1, for additional details on overlapping debt.

Covenant to Commence Foreclosure Proceedings. Under the Mello-Roos Act, the City will covenant in each Local Obligation Fiscal Agent Agreement with and for the benefit of the Authority, as the owners of the Local Obligations, that it will order, and cause to be commenced as described below, and thereafter diligently prosecute to judgment (unless such delinquency is theretofore brought current), an action in the superior court to foreclose the lien of any Special Tax or installment thereof not paid when due as provided in the following two paragraphs.

In each Local Obligation Fiscal Agent Agreement, the City covenants with and for the benefit of the Owners of the Local Obligations that it will annually on or before September 1 of each year review the public records of the County related to the collection of the Special Tax in order to determine the amount of the Special Tax collected in the prior Fiscal Year, and if the City determines on the basis of such review that:
(a) the amount so collected is deficient by more than 5% of the total amount of the Special Tax for the Improvement Area levied in such Fiscal Year, then the City will institute, prosecute and pursue such foreclosure proceedings against each parcel in Improvement Area for which any installment of the Special Tax is delinquent in the time and manner provided below; or
(b) the amount so collected is deficient by less than 5% of the total amount of the Special Tax for the Improvement Area levied in such Fiscal Year, but property owned by any single property owner is delinquent cumulatively by an amount equal to three installment payments with respect to the current and past Special Tax due, then the City Item 8.1
Mountain House Page 1134 of 1946 26 will institute, prosecute and pursue such foreclosure proceedings against each such property owner in the time and manner provided below.

Under current law, a judgment debtor (property owner) has at least 140 days from the date of service of the notice of levy in which to redeem the property to be sold. If a judgment debtor fails to redeem and the property is sold, his or her only remedy is an action to set aside the sale, which must be brought within 90 days of the date of sale. If, as a result of such an action a foreclosure sale is set aside, the judgment is revived and the judgment creditor is entitled to interest on the revived judgment as if the sale had not been made (California Code of Civil Procedure Section 701.680).

Foreclosure by court action is subject to normal litigation delays, the nature and extent of which are largely dependent upon the nature of the defense, if any, put forth by the debtor and the condition of the calendar of the superior court of the county. Such foreclosure actions can be stayed by the superior court on generally accepted equitable grounds or as the result of the debtor’s filing for relief under the Federal bankruptcy laws. The Act provides that, upon foreclosure, the Special Tax lien will have the same lien priority as is provided for ad valorem taxes and special assessments.

No assurances can be given that the real property subject to a judicial foreclosure sale will be sold or, if sold, that the proceeds of sale will be sufficient to pay any delinquent Special Tax installment. The Act does not require the District to purchase or otherwise acquire any lot or parcel of property foreclosed upon if there is no other purchaser at such sale.

Section 53356.6 of the Mello-Roos Act requires that property sold pursuant to foreclosure under the Mello-Roos Act be sold for not less than the amount of judgment in the foreclosure action, plus post-judgment interest and authorized costs, unless the consent of the owners of 75% of the outstanding Bonds is obtained. However, under Section 53356.6 of the Mello-Roos Act, the District, as judgment creditor, is entitled to purchase any property sold at foreclosure using a “credit bid,” where the District could submit a bid crediting all or part of the amount required to satisfy the judgment for the delinquent amount of the Special Tax. If the District becomes the purchaser under a credit bid, the District must pay the amount of its credit bid into the redemption fund established for the Bonds, but this payment may be made up to 24 months after the date of the foreclosure sale.

Other Covenants of the City. In each Local Obligation Fiscal Agent Agreement, the City will make the following covenants (among others).

Punctual Payment. It will punctually pay or cause to be paid the principal of, and interest and any premium on, the Local Obligations when and as due in strict conformity with the terms of the Local Obligation Fiscal Agent Agreements, and it will faithfully observe and perform all of the conditions, covenants and requirements of the Local Obligation Fiscal Agent Agreements and of the Local Obligations.

Against Encumbrance. It will not encumber, pledge or place any charge or lien upon any of the Special Tax Revenues or other amounts pledged to the Local Obligations superior to or on a parity with the pledge and lien herein created for the benefit of the Local Obligations, except as permitted by the Local Obligation Fiscal Agent Agreement.

Item 8.1
Mountain House Page 1135 of 1946 27 Levy of Special Tax. The City will comply with all requirements of the Mello-Roos Act so as to assure the timely collection of Special Tax Revenues, including without limitation, the enforcement of delinquent Special Taxes.

The City shall effect the levy of the Special Taxes each Fiscal Year in accordance with the Ordinance such that the computation of the levy is complete before the final date on which the County Auditor will accept the transmission of the Special Tax amounts for the parcels within each Improvement Area for inclusion on the next secured real property tax roll. Upon the completion of the computation of the amounts of the levy, the City shall prepare or cause to be prepared, and shall transmit to the Finance Director, such data as the County Auditor requires to include the levy of the Special Taxes on the next secured real property tax roll.

The City shall fix and levy the amount of Special Taxes within each Improvement Area required for the payment of principal of and interest on any Outstanding Local Obligations becoming due and payable during the ensuing year, including any necessary replenishment or expenditure of the Reserve Requirement Allocation and an amount estimated to be sufficient to pay the Administrative Expenses during such year, all in accordance with the Rate and Method and the Ordinance.

Special Tax Methodology
The Special Tax authorized under the Mello-Roos Act applicable to land within each Improvement Area will be levied and collected according to the tax liability determined by the City through the application of the appropriate amount or rate as described in the respective Special Tax Formulas set forth in APPENDIX A-3 and APPENDIX B-3.

For each Fiscal Year, the City Council shall levy the Special Tax until the amount of the Special Tax levied equals the Special Tax Requirement. “Special Tax Requirement” means that amount required in any Fiscal Year for the Improvement Area to: (a) (i) pay debt service on all Outstanding Local Obligations for the calendar year that commences in such Fiscal Year; (ii) pay periodic costs on the Local Obligations, including but not limited to, credit enhancement and rebate payments on the Local Obligations; (iii) pay reasonable Administrative Expenses; (iv) pay any amounts required to establish or replenish any Local Obligation reserve accounts; (v) pay directly for acquisition or construction of authorized facilities to be constructed or acquired by the Improvement Area, except Special Taxes on Undeveloped Property shall not be levied for Item 8.1
Mountain House Page 1136 of 1946 28 this purpose; (vi) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (b) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture.

See the respective Rate and Method for each Improvement Area set forth in the respective Appendix for each Improvement Area attached hereto.

THE AUTHORITY
The Authority is a joint exercise of powers authority duly organized and operating pursuant to Article 1 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the California Government Code, and pursuant to a Joint Exercise of Powers Agreement, dated as of June 1, 2019, between the City and California Statewide Communities Development Authority, and is qualified to assist in financing projects and to issue the Bonds under the Bond Law. The governing board of the Authority is the City Council of the City. However, the Authority and the City are each separate and distinct legal entities, and the debts and obligations of one such entity are not debts or obligations of the other entity.

THE CITY
Incorporation in 2024. The City was incorporated by vote of its citizens at an election held on March 5, 2024, becoming the 483rd incorporated city admitted to the State of California in July 2024. As part of the incorporation process, the District, which had been formed by the City’s predecessor, Mountain House Community Services District, officially became a community facilities district of the City with the City Council as its legislative body, and the Mountain House Community Services District became a subsidiary district of the City.

The City is located in San Joaquin County, north of Interstate 205, south of Old River, east of the Alameda County line and west of Mountain House Parkway directly north and northwest of the City of Tracy. Regional access to the community is from Interstate 205, along the southern boundary. Local access is via Grant Line Road and Byron Road, which traverse the community and Mountain House Parkway along the eastern boundary. The population of the City as of January 1, 2026 was 30,687.

Origins of the Mountain House Community. In 1996, the County established the Mountain House Community Services District (“MHCSD”), which provided many, but not all, of the same services and received many, but not all, of the same revenues as an incorporated city in the State. Upon formation of the MHCSD, it was contemplated the territory in Mountain House community would someday incorporate.

The Mountain House community, as conceived by the original developer, Trimark Communities, LLC was approved for development under the Mountain House Master Plan (the “Master Plan”) for the community, and three specific plans thereunder. The Master Plan was adopted as an amendment to the County General Plan in 1993 and further amended in 1994.

The County certified a final environmental impact report (“EIR”) on the amendment to the County General Plan in 1992, a supplemental EIR in 1993 and a master EIR on the Master Plan and Specific Plan 1 in 1994. The Master Plan provided that essential public services, including streets, storm drain, water and sewer, were to be provided by MHCSD. Home development by Item 8.1
Mountain House Page 1137 of 1946 29 merchant builders commenced pursuant to the Master Plan and as of the end of 2024 approximately 8,000 homes have been built in what is now the City.

THE IMPROVEMENT AREAS
Pursuant to the Mello-Roos Act, the City has formed each Improvement Area within the District from land originally in a future annexation area. Proceeds of the Bonds will be used to purchase the Local Obligations, and the Local Obligations are being issued to finance public facilities to be owned by the City.

The Improvement Area No. 8 Local Obligations are secured on parity with a series of bonds issued in 2025. No bonds have been previously issued for Improvement Area No. 13.

Additional bonds are expected to be issued for each Improvement Area.

Taxable land in each Improvement Area is comprised of residential development at different stages of development. Lennar Homes intends that finished homes will be sold to individual homeowners in each Improvement Area, as further described herein. A summary of development as of the date indicated follows. See APPENDIX A-1 and APPENDIX B-1 for additional details.

SUMMARY OF IMPROVEMENT AREA DEVELOPMENT STATUS
As of July 18, 2026(1)
Improvement
Area
Total Units
Planned
Completed
Homes Owned
by Lennar
Homes and AG
Land Banks
Partially
Completed
Homes
(Building
Permits)
Remaining
Partially
Improved/
Finished Lots
Homes Sold
and Closed
No. 8 503 45 26 295 137
No. 13 330 0 0 330 0
Totals 833 45 26 625 137
(1) See Appendix A-1 and Appendix B-1 for more detailed information regarding the development status within each Improvement Area and the land-banking arrangements applicable to each project.

Source: Lennar Homes.

This Official Statement presents certain information describing the Improvement Areas on a combined basis for informational purposes. However, the Bonds are collectively secured by distinct revenue streams: debt service on each series of the Local Obligations.

The Special Taxes of each Improvement Area are available only to pay debt service on the Local Obligations of the respective Improvement Area and not available to pay debt service on the Local Obligations of any other Improvement Area. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS.”
Item 8.1
Mountain House Page 1138 of 1946 30 VALUE OF PROPERTY WITHIN THE IMPROVEMENT AREAS
Unpaid Special Taxes do not constitute a personal indebtedness of the owners of the parcels within each respective Improvement Area and the owners have made no commitment to pay the principal of or interest on the Local Obligations or the Bonds or to support payment of the Local Obligations or the Bonds in any manner. There is no assurance that the owners have the ability to pay the special taxes or that, even if they have the ability, they will choose to pay such taxes. An owner may elect to not pay the special taxes when due and cannot be legally compelled to do so. Neither the City nor any Bondholder will have the ability at any time to seek payment from the owners of property within the Improvement Areas of any special tax or any principal or interest due on the Local Obligations or the Bonds, or the ability to control who becomes a subsequent owner of any property within the Improvement Areas.

General
The value of the land within the Improvement Areas are a critical factor in determining the investment quality of the Bonds. If a property owner defaults in the payment of a Special Tax, the Authority’s only remedy is to foreclose on the delinquent property in an attempt to obtain funds with which to pay the delinquent Special Taxes. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS” and “SPECIAL RISK FACTORS.” Reductions in Improvement Area property values due to a downturn in the economy, natural disasters such as earthquakes, fires or floods, stricter land use regulations or other events could have an adverse impact on the value, and in turn the security for payment of the Special Taxes.

The Special Tax is levied on each taxable parcel within each Improvement Area and only the respective individual parcel is responsible for such Special Tax. In comparing the aggregate value of the real property within the Improvement Areas and the principal amount of the Bonds, it should be noted that only the Assessor’s parcel of real property upon which there is a delinquent Special Tax can be foreclosed upon and each Improvement Areas’ Special Taxes can only be used to pay for debt service and expenses of the respective Improvement Area. As to each Improvement Area, all of the real property within such Improvement Area cannot be foreclosed upon as a whole to pay delinquent Special Taxes unless all of the property in the Improvement Area is delinquent in the payment of Special Taxes. Individual parcels may be foreclosed upon to pay delinquent Special Taxes levied against such parcels only. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS.”
The annual Special Taxes for the Improvement Areas will be billed annually for each parcel within the Improvement Areas. Upon sale of developed parcels, the buyer typically acquires the property subject to the unpaid portion of any special taxes and special taxes levied against the parcel purchased. Unpaid Special Taxes are not required to be removed from the property and are not required to be, but may be, paid off in full upon transfer of property or upon development of the property.

Estimated Value of Taxable Property
The value of taxable property within the Improvement Areas is a critical factor in determining the investment quality of the Bonds.

Assessed Values and Appraised Valuations. The City has obtained the San Joaquin County Fiscal Year 2026-27 assessed value (the “Assessed Valuation”) of the taxable parcels in each Improvement Area, and, in order to obtain a more accurate estimate of the value of Item 8.1
Mountain House Page 1139 of 1946 31 taxable parcels in the Improvement Areas, the Authority ordered preparation of a separate appraisal report (each, as previously defined, an “Appraisal”) of (i) as to Improvement Area No. 13, the estimated value of all 330 taxable parcels within Improvement Area No. 13, and (ii) as to Improvement Are 8, the estimated value of the 390 taxable parcels which did not have a completed assessed valuation on the County Assessor’s roll for Fiscal Year 2026-27. The value estimate for Improvement Are No. 8 as set forth in the Appraisal includes the assessed value of the 113 parcels with completed homes, however those parcels were not independently appraised.

Assessed Values. The County assessed valuations are not in all cases reflective of most current development status, as is the case with certain properties in the District. As provided by Article XIII A of the California Constitution, county assessors' assessed values are to reflect market value as of the date the property was last assessed (or 1975, which ever is more recent), increased by a maximum of 2% per year. Properties may be reassessed by the County only upon a change of at least 51% ownership of existing property or upon new construction. The assessed values of parcels in the District thus reflect, for undeveloped parcels, the estimate of the County Assessor (the “Assessor”) of market value when acquired (or 1975, whichever is later), possibly increased by 2% per year, and for parcels on which construction has occurred since their date of acquisition, the Assessor's estimate of market value as of the time of construction, possibly increased by 2% per year. The actual market value of parcels in the District, if sold at foreclosure, may be higher or lower than the Assessor's assessed values, depending upon the date of the Assessor's most recent assessment. The actual fair market value of any parcel can often be more accurately established through an arms-length sale or an appraisal by an independent appraiser.

Because of the general limitation to 2% per year in increases in full cash value of properties which remain in the same ownership, the County tax roll does not reflect values uniformly proportional to actual market values. No assurance can be given that should a parcel with delinquent Special Taxes be foreclosed and sold for the amount of the delinquency, that any bid will be received for such property, or if a bid is received that such bid will be sufficient to pay such delinquent installments. The assessed valuation for the Improvement Areas for Fiscal Year 2026-27 is as follows:

Improvement Area No. 8
Fiscal
Year
Land
Assessed
Value
Improvement
Assessed
Value
Total
Assessed
Value
2026-27 $103,309,683 $68,955,476 $172,265,159(1)
Improvement Area No. 13
Fiscal
Year
Land
Assessed
Value
Improvement
Assessed
Value
Total
Assessed
Value
2026-27 $124,654,200 $0 $124,654,200
_______________
(1) The assessed value of the 113 completed homes not appraised is $108,285,289.

Sources: San Joaquin County Assessor’s Office; Goodwin Consulting Group, Inc.

Appraised Values. The Appraisals were prepared by the Appraiser. The Appraisals are set forth in the respective Improvement Area appendices hereto. The description herein of the Item 8.1
Mountain House Page 1140 of 1946 32 Appraisals is intended for limited purposes only; each Appraisal should be read in its entirety.

The conclusions reached in the Appraisals are subject to certain assumptions, conditions and qualifications which are set forth in the Appraisals. Of the 390 single-family residential lots appraised within Improvement Area No. 8, 69 lots were improved with completed single-family homes not currently assessed at or above $750,000 by the County Assessor; as such, a “notless- than” estimate of market value for the smallest floor plan per product line was appraised and assigned to each respective Assessor’s parcel that meets this criteria. The appraised valuation excludes the value of all portions of the property in the Improvement Areas designated for public and quasi-public purposes (non-taxable parcels) and assumes completion of infrastructure funded by the Local Obligations and accounts for the impact of the lien of the Special Tax of each Improvement Area.

Appraised Parcels. The aggregate valuation of the property in the Improvement Areas has been compiled using the Appraisals, using the methodologies described in the Appraisals and subject to the limiting and hypothetical conditions and general and special assumptions set forth in the Appraisals, and as described above and set forth in Appendices hereto. The principal amount of the Bonds allocated to each Improvement Areas is not based on the valuation of the property in each Improvement Area. The total appraised valuation of all property in the Improvement Areas subject to the Special Taxes as set forth in the Appraisals with a July 18, 2026 date of value, and allocation of the debt of the Bonds is shown in the table below. See APPENDIX A-1 and APPENDIX B-1 for additional details.

SUMMARY OF VALUATIONS
Improvement
Area
No.

Taxable
Parcels
Combined
Value
Estimate(1) (2)
Allocation of
Bonds *
% Allocation of
Bonds *
No. 8 503 $272,154,289 $4,925,000 48.4%
No. 13 330 107,324,000 5,250,000 51.6
Totals 833 $379,478,289 $10,175,000 100.0%
* Preliminary, subject to change.
(1) For Improvement Area No. 8, combined value means appraised value of 390 taxable lots (including 69 completed homes, 32 of which are owned by individuals but not yet on the County tax roll as completed homes) and assessed value of 113 taxable lots that have developed into completed homes. For the 69 completed homes not currently assessed at or above $750,000 by the County Assessor, a “not-less- than” estimate of market value for the smallest floor plan per product line was appraised and assigned to each respective Assessor’s parcel that meets this criteria. (2) The appraised value of the 330 taxable lots within Improvement Area No. 13 of $107,324,000 is lower than the $124,654,200 assessed valuation shown on the Fiscal Year 2026-27 County property tax roll. See APPENDIX B-1 and APPENDIX B-2 for additional details.

Source: Integra Realty Resources, Inc.

The Appraiser’s valuation process for other than the assessed valuation parcels employed the sales comparison approach and land residual analysis to estimate the market value of a benchmark lot category. In the sales comparison approach, adjustments are applied to the prices of comparable bulk lot transactions, and a market value for the benchmark lot category is concluded. Then, as a support of reasonableness, a land residual analysis is utilized, which is reconciled with the sales comparison approach conclusion. Adjustments are then applied to determine values, based upon lot size differences that exist from the lots within the benchmark lot category. The final estimate of market value is estimated by employing a discounted cash flow analysis, whereby the expected revenue, absorption period, expenses and discount rate associated with the sell-off of the lots were taken into account.

Hypothetical Condition. The market value estimated by the Appraiser is based on a hypothetical condition. A hypothetical condition is defined by USPAP as “a condition, directly Item 8.1
Mountain House Page 1141 of 1946 33 related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of the analysis.” It is a hypothetical condition of the Appraisals that the proceeds from the Bonds will be used to fund certain impact fees otherwise due. The market value estimated in each Appraisal is based on the hypothetical condition certain impact fees to be financed by the Bonds have been paid. The estimate of market value accounts for the impact of the lien of the Special Taxes securing the Bonds.

Assumptions and Limiting Conditions. In considering the estimate of value evidenced by the Appraisals, each Appraisal is based upon a number of limiting conditions and standard and extraordinary assumptions which affect the estimates as to value, including, among others, the following.
• The valuation analysis is based on developer-provided site development cost projections for the subject property. If, at some future date, it is determined that cost estimates or input factors yielding the anticipated developer contribution for building permits and fees are different than actual, the values contained herein could be affected. • The valuation analysis did not include review of a current title report of all properties to determine any possible conditions of title affecting the properties appraised.

The Appraiser accepts no responsibility for matters pertaining to title. • The Appraiser has also assumed that there is no hazardous material on or in the property that would cause a loss in value. Should future conditions and events involving hazardous material reduce the level of permitted development or delay the completion of any projected development, the value of the undeveloped land would likely be reduced from that estimated by the Appraiser. See “SPECIAL RISK FACTORS – Land Values” and “– Hazardous Substances” below. See the Appraisals contained in appendices hereto for a description of certain assumptions made by the Appraiser.

Accordingly, because the Appraiser arrived at an estimate of current market value based upon certain conditions and assumptions which may or may not be fulfilled, no assurance can be given that should the parcels become delinquent due to unpaid Special Taxes, and be foreclosed upon and offered for sale for the amount of the delinquency, that any bid would be received for such property or, if a bid is received, that such bid would be sufficient to pay such delinquent Special Taxes.

Limitations of Appraisal Valuation. Property values may not be evenly distributed throughout each Improvement Area; thus, certain parcels may have a greater value than others.

This disparity is significant because in the event of nonpayment of the Special Tax, the only remedy is to foreclose against the delinquent parcel.

No assurance can be given that the foregoing valuations can or will be maintained during the period of time that the Bonds are outstanding in that the Authority has no control over the market value of the property within the Improvement Areas or the amount of additional indebtedness that may be issued in the future by other public agencies, the payment of which, through the levy of a tax or an assessment, may be on a parity with the Special Taxes. See “– Priority of Lien” below. For a description of certain risks that might affect the assumptions made in the Appraisals, see “SPECIAL RISK FACTORS” herein.

Item 8.1
Mountain House Page 1142 of 1946 34 Overlapping Liens
General. Contained within the boundaries of each Improvement Area are certain overlapping local agencies providing public services and assessing property taxes, assessments, special taxes and other charges on the property in that Improvement Area. Many of these local agencies have outstanding debt. See the Appendices hereto for Overlapping Bonded Debt statements provided by California Municipal Statistics, Inc., with respect to each Improvement Area.

In addition, other public agencies whose boundaries overlap those of each Improvement Area could, without the consent of the Authority and in certain cases without the consent of the owners of the land within the Improvement Area, impose additional taxes or assessment liens on the land within the Improvement Area. The purpose would be to finance additional regional or local public improvements or services. The lien created on the land within such Improvement Area through the levy of such additional taxes or assessments would be co-equal and independent to the lien of the Special Tax. In addition, construction loans may be obtained by the developers of property in any Improvement Area or home loans may be obtained by ultimate homeowners. The deeds of trust securing such loans on property within an Improvement Area, however, will be in a junior position to the lien of the Special Tax.

Overlapping Lammserville Joint Unified School District CFDs. The Lammersville Joint Unified School District (“Lammersville JUSD”) has a bond financing program pursuant to which developing property within the Lammersville JUSD is annexed into community facilities districts (or improvement areas thereof) that issue land-secured debt to finance school facilities.

All of the land within Improvement Area No. 8 and Improvement Area No. 13 (except Tract 4212) is located within the Lammersville JUSD Community Facilities District No. 2024-1. Land comprising Tract 4212 is located within Improvement Area No. 1 of the Lammersville JUSD Community Facilities District No. 2007-1. Additional details on each of these community facilities districts follows.

Lammersville JUSD CFD No. 2024-1. All of the land within Improvement Area No. 8 and all of the land within Improvement Area No. 13 (except Tract 4212) is within Lammersville JUSD Community Facilities District No. 2024-1, which CFD covers a broader area and has a bond authorization of $250,000,000. Currently, a total of $65,890,000 in bonds is outstanding for this CFD. In the future, land within Improvement Area No. 8 and Improvement Area No. 13 (except Tract 4212) will be subject to increased future levies for this CFD, which will reduce the value to lien ratios shown herein. See the applicable value to lien tables herein.

Improvement Area No. 1 of the Lammersville JUSD CFD No. 2007-1. Land comprising Tract 4212 within Improvement Area No. 13 is within Improvement Area No. 1 of the Lammersville JUSD Community Facilities District No. 2007-1 (“Improvement Area No. 1”), which Improvement Area A covers a broader area and has a bond authorization of $200,000,000. Currently, a total of $20,720,000 in bonds is outstanding for Improvement Area No. 1. In the future, land comprising Tract 4212 within Improvement Area No. 13 will be subject to increased future levies for Improvement Area No. 1, which will reduce the value to lien ratios shown herein. See the applicable value to lien tables herein.

Item 8.1
Mountain House Page 1143 of 1946 35 Value to Special Tax Burden Ratios
Aggregate Valuation and Value-to-lien Table. The Appraisals set forth the Appraiser’s estimated combined value of all taxable property within the Improvement Areas to be 379,478,289 subject to the limiting conditions stated therein. (See “– The Appraisals” above and the appendices hereto.) In comparing the value of the real property within each Improvement Area to the principal amount of the respective Bonds and other direct and overlapping debt for the respective Improvement Area, it should be noted that only the real property upon which there is a delinquent Special Tax can be foreclosed upon, and the real property within a Improvement Area cannot be foreclosed upon as a whole to pay delinquent Special Taxes of the owners of such parcels within such Improvement Area unless all of the property is delinquent in the payment of the Special Tax. In any event, individual parcels may be foreclosed upon separately to pay delinquent Special Taxes levied against such parcels.

The following table shows aggregate appraised values within each Improvement Area and the allocated Bonds and overlapping land-secured debt, and value-to-lien ratios for each Improvement Area.

SUMMARY OF VALUATIONS AND VALUE-TO-LIEN RATIOS
Date of Appraised Value: July 18, 2026
Improvement
Area
FY 2027-28
Maximum
Facilities Special
Tax at Buildout
2025
Bonds
Allocated
Bonds*
Total CFD
Bonds
Overlapping
Debt (1) Total Debt*
Combined
Value(2)
Average
Combined
Value-toLien*
No. 8 $934,060 $5,800,000 $4,925,000 $10,725,000 $22,806,383 $33,531,383 $272,154,289 8.1 : 1 No. 13 937,812 0 5,250,000 5,250,000 11,276,109 16,526,109 107,324,000 6.5 : 1 Total $1,871,872 $5,800,000 $10,175,000 $15,975,000 $34,082,491 $50,057,491 $379,478,289 7.6 : 1 * Preliminary, subject to change.
(1) Includes the outstanding overlapping general obligation bonds of the San Joaquin Delta Community College District and Lammersville Joint Unified School District, as stated in the overlapping debt report prepared by California Municipal Statistics, Inc. The overlapping debt report is based on the parcels and assessed values as of FY 2025-26. Also includes the currently outstanding overlapping CFD debt of Improvement Area No. 1 of the Lammersville Joint Unified School District CFD No. 2007-1 and Lammersville Joint Unified School District CFD No. 2024-1, allocated based on the projected special tax levies for those CFDs as of July 18, 2026. The amount of overlapping CFD debt is subject to change as the School District issues more debt. (2) Includes assessed values for 113 parcels that were not appraised in Improvement Area No. 8. For all other parcels that were appraised, values were allocated to the individual lots based on the expected development and lot status for each, as reported in the Appraisal. The allocated appraised values may not be indicative of the market values of the villages or the individual lots. The appraised value of the 330 taxable lots within Improvement Area No. 13 of $107,324,000 is lower than the $124,654,200 assessed valuation shown on the Fiscal Year 2026-27 County property tax roll. See APPENDIX B-1 and APPENDIX B-2 for additional details.

Sources: Integra Realty Resources, Inc.; Piper Sandler & Co.; California Municipal Statistics, Inc.; Goodwin Consulting Group, Inc.

Item 8.1
Mountain House Page 1144 of 1946 36 Priority of Lien
The principal of and interest on the Local Obligations are payable from the Special Tax authorized to be collected within each respective Improvement Area, and payment of the Special Tax is secured by a lien on certain real property within such District. Such lien is coequal to and independent of the lien for general taxes and any other liens imposed under the Mello-Roos Act, regardless of when they are imposed on the property in the District. The imposition of additional special taxes, assessments and general property taxes will increase the amount of independent and co-equal liens which must be satisfied in foreclosure. The City, the County and certain other public agencies are authorized by the Mello-Roos Act to form other community facilities districts and improvement areas and, under other provisions of State law, to form special assessment districts, either or both of which could include all or a portion of the land within such District.

Private liens, such as deeds of trust securing loans obtained by owners of property in the District, may be placed upon property in the District at any time. Under California law, the Special Taxes have priority over all existing and future private liens imposed on property subject to the lien of the Special Taxes.

Parcels in the Improvement Areas are subject to a bonded special tax lien and nonbonded special taxes and assessments for services. See APPENDIX A-1 and APPENDIX B-1 for additional details.

SPECIAL RISK FACTORS
The purchase of the Bonds described in this Official Statement involves a degree of risk that may not be appropriate for some investors. The following includes a discussion of some of the risks which should be considered before making an investment decision. This discussion does not purport to be comprehensive or definitive and does not purport to be a complete statement of all factors which may be considered as risks in evaluating the credit quality of the Bonds.

Limited Obligation to Pay Debt Service
The Bonds. The Bonds are special obligations of the Authority payable solely from and secured solely by the Revenues and certain funds pledged therefor in the Indenture, consisting primarily of debt service on the Bonds.

The Local Obligations. The Local Obligations are special obligations of the City payable solely from and secured solely by the Special Tax Revenues. The Authority has no obligation to pay principal of or interest on the Bonds if Special Tax collections are delinquent or insufficient, other than from funds derived from the foreclosure and sale of parcels for Special Tax delinquencies. The Authority is not obligated to advance funds to pay debt service on the Bonds. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS.” Levy and Collection of the Special Taxes
General. The principal source of payment of principal of and interest on the Local Obligations is the proceeds of the annual levy and collection of the Special Tax against property within the applicable Improvement Area.

Item 8.1
Mountain House Page 1145 of 1946 37 Limitation on Special Tax Rate. The annual levy of the Special Tax on any parcel is limited to the maximum Special Tax rate authorized in the applicable Special Tax Formula. The levy cannot be made at a higher rate even if the failure to do so means that the estimated proceeds of the levy and collection of the Special Tax, together with other available funds, will not be sufficient to pay debt service on the Local Obligations.

Collection of Special Taxes in Event of Delinquencies. In addition to the Maximum Annual Special Tax rate limitation in each Rate and Method, Section 53321(d) of the MelloRoos Act provides that the Special Tax levied against any parcel within a Improvement Area for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within such Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. In cases of significant delinquency, these factors may result in defaults in the payment of principal of and interest on the Local Obligations and, in turn, the Bonds.

No Relationship Between Property Value and Special Tax Levy. Because the Special Tax Formula is not based on property value, the levy of the Special Tax will rarely, if ever, result in a uniform relationship between the value of particular parcels of Taxable Property and the amount of the levy of the Special Tax against those parcels. Thus, there will rarely, if ever, be a uniform relationship between the value of the parcels of Taxable Property and their proportionate share of debt service on the Local Obligations, and certainly not a direct relationship.

Factors that Could Lead to Special Tax Deficiencies. The following are some of the factors that might cause the levy of the Special Tax on any particular parcel of Taxable Property to vary from the Special Tax that might otherwise be expected:

Transfers to Governmental Entities. The number of parcels of Taxable Property could be reduced through the acquisition of Taxable Property by a governmental entity (by exercise of its rights as mortgage guarantor, or for other reasons) and failure of the government to pay the Special Tax based upon a claim of exemption or, in the case of the federal government or an agency thereof, immunity from taxation, thereby resulting in an increased tax burden on the remaining taxed parcels.

Property Tax Delinquencies. Failure of the owners of Taxable Property to pay property taxes (and, consequently, the Special Tax), or delays in the collection of or inability to collect the Special Tax by tax sale or foreclosure and sale of the delinquent parcels, could result in a deficiency in the collection of Special Taxes. For a summary of Special Tax collections in the Improvement Areas, see “OWNERSHIP AND VALUE OF PROPERTY WITHIN THE IMPROVEMENT AREAS – Tax Collections and Delinquencies.”
Delays Following Delinquencies and Foreclosure Sales. The Local Obligation Fiscal Agent Agreements provide that the Special Tax is to be collected in the same manner as ordinary ad valorem property taxes are collected and, except as provided in the special covenant for foreclosure described in “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS - Security for the Local Obligations” and in the Mello-Roos Act, is subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ordinary ad valorem property taxes.

Item 8.1
Mountain House Page 1146 of 1946 38 Under these procedures, if taxes are unpaid for a period of five years or more, the property is subject to sale by the County.

If sales or foreclosures of property are necessary, there could be a delay in payments to the Authority, as owner of the Local Obligations, pending such sales or the prosecution of foreclosure proceedings and receipt by the City of the proceeds of sale.

See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS - Security for the Local Obligations.”
Payment of Special Taxes is not a Personal Obligation of the Property Owners Property Owners are not personally obligated to pay their respective Special Taxes.

Rather, the Special Taxes are obligations only against the respective parcels against which they are levied. If, after a default in the payment of the Special Tax and a foreclosure sale, the resulting proceeds are insufficient, taking into account other obligations also constituting a lien against the parcel, the City has no personal recourse against the parcel owner.

Concentration of Ownership of Undeveloped Property
Ownership of the land within each Improvement Area is currently highly concentrated.

Although there will be transfers of ownership of this property as development progresses and home sales are closed, the timely payment of the Bonds depends upon the willingness and ability of all of the owners of taxable property within the Improvement Area to pay the Special Taxes when due. The only assets of the owners of property within the Improvement Area which constitute security for the Bonds are such owners’ real property holdings located within the respective Improvement Area, and each parcel may only be foreclosed against for delinquent Special Taxes levied against such parcel. If the current landowners choose to pay some but not all of the Special Taxes, they may, as owners of parcels in the Improvement Areas, choose to default on payments of the Special Tax on parcels. Also see “– Bankruptcy Delays” below.

Development of undeveloped property within the Improvement Areas may be subject to unexpected delays, disruptions and changes which may affect the willingness and ability of the homebuilders or other property owners to pay the Special Taxes when due. Certain infrastructure improvements remain to be completed in order to complete construction of the homes in the Improvement Areas. No assurance can be given that the remaining proposed residential developments will be partially or fully completed, and for purposes of evaluating the investment quality of the Bonds, prospective purchasers should consider the possibility that such parcels will remain vacant and only partially improved.

Property Values
The value of Taxable Property within the Improvement Areas is a critical factor in determining the investment quality of the Bonds. If a parcel owner defaults in the payment of the Special Taxes, the Authority’s only remedy is to foreclose on the delinquent property. The following is a discussion of specific risk factors that could affect the value of property in the Improvement Areas.

Prolonged Economic Downturn. Land values are affected by economic conditions and to the extent that an economic downturn is prolonged, property values could decline or remain flat for an indefinite period. Declines in home values in the Improvement Areas could also result in property owner unwillingness or inability to pay Item 8.1
Mountain House Page 1147 of 1946 39 mortgage payments, as well as ad valorem property taxes and Special Taxes, when due. Under such circumstances, bankruptcies are likely to increase. Bankruptcy by homeowners with delinquent Special Taxes would delay the commencement and completion of foreclosure proceedings.

Natural Disasters. The value of the parcels in the Improvement Areas in the future can be adversely affected by a variety of natural occurrences, particularly those that may affect infrastructure and other public improvements and private improvements on the parcels in the Improvement Areas and the continued habitability and enjoyment of such private improvements. For example, the areas in and surrounding the Improvement Areas, like those in much of California, may be subject to earthquakes or other unpredictable seismic activity, however, the Improvement Areas are not located in a seismic special studies zone.

Other natural disasters could include, without limitation, landslides, floods, droughts or tornadoes. One or more natural disasters could occur and could result in damage to improvements of varying seriousness. The damage may entail significant repair or replacement costs and that repair or replacement may never occur either because of the cost, or because repair or replacement will not facilitate habitability or other use, or because other considerations preclude such repair or replacement. Under any of these circumstances there could be significant delinquencies in the payment of Special Taxes, and the value of the parcels may well depreciate.

Droughts. California has a history of experiencing drought conditions from time to time. Droughts show California facing water shortfalls and public officials taking necessary actions to prepare for these drought conditions. Even though the most recent drought conditions have ended, no assurance can be given that drought conditions will not return in the future, potentially impacting the Improvement Areas.

Wildfires. In recent years, drought conditions in the State (see “– Drought above”) have led to increased risk of wildfire. In particular, certain electrical operators in the State have seen their distribution/transmission lines cause billions of dollars in property damage and the loss of lives. In 2023, as in several prior years, for example, devastating wildfires burned in various communities in California, causing wide-spread damage. In 2025, communities in Los Angeles County, including Pacific Palisades, Malibu and Altadena, experienced widespread devastation from wildfires causing losses of life, thousands of burned homes, and billions of dollars in property damage. Although not located in a very high fire hazard severity zone, no assurance can be given that wildfires will not erupt in the Improvement Areas and negatively impact property in the Improvement Areas in the future.

Various insurance companies in the State have restricted the availability of fire insurance. Should homeowners within the Improvement Areas be unable to obtain fire insurance, they may not be able to qualify for a mortgage, which in turn may affect the rate of home values within the Improvement Areas. The Authority can provide no assurance going forward that fire insurance will be readily available to homeowners within the Improvement Areas. The inability to obtain adequate insurance coverage could impact the ability of the homeowners in the Improvement Areas to reconstruct their home in the event of damage due to fire.

Item 8.1
Mountain House Page 1148 of 1946 40 Hazardous Substances. One of the most serious risks in terms of the potential reduction in the property values is a claim with regard to a hazardous substance. In general, the owners and operators of property may be required by law to remedy conditions of the parcel relating to releases or threatened releases of hazardous substances. The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, sometimes referred to as “CERCLA” or the “Superfund Act,” is the most well-known and widely applicable of these laws, but California laws with regard to hazardous substances are also stringent and similar. Under many of these laws, the owner or operator is obligated to remedy a hazardous substance condition of property whether or not the owner or operator has anything to do with creating or handling the hazardous substance. The effect, therefore, should any of the Taxable Property in the Improvement Areas be affected by a hazardous substance, is to reduce the marketability and value of the parcel by the costs of remedying the condition, because the purchaser, upon becoming owner, will become obligated to remedy the condition just as is the seller.

Although the Authority is not aware that the owner or operator of any of the Taxable Property in the Improvement Areas has such a current liability, it is possible that such liabilities do currently exist. Further, it is possible that liabilities may arise in the future resulting from the existence, currently, on the parcel of a substance presently classified as hazardous but that has not been released or the release of which is not presently threatened, or may arise in the future resulting from the existence, currently on the parcel of a substance not presently classified as hazardous but that may in the future be so classified. Further, such liabilities may arise not simply from the existence of a hazardous substance but from the method of handling it. All of these possibilities could significantly affect the property values that would otherwise be realized upon a delinquency.

Other Factors. Other factors that could adversely affect property values in the Improvement Areas include, among others, relocation of employers out of the area, shortages of water, electricity, natural gas or other utilities, and destruction of property caused by man-made disasters.

Other Possible Claims Upon the Property Values
While the Special Taxes are secured by the Taxable Property in the Improvement Areas, the security only extends to the value of such property that is not subject to priority and parity liens and similar claims.

Tables listing of the outstanding governmental obligations affecting each Improvement Area are set forth above under “OWNERSHIP AND VALUE OF PROPERTY WITHIN THE IMPROVEMENT AREAS – Direct and Overlapping Governmental Liens.” In addition, other governmental obligations may be authorized and undertaken or issued in the future, the tax, assessment or charge for which may become an obligation of one or more of the parcels within the Improvement Areas, and may be secured by a lien on a parity with the lien of the Special Taxes securing the Local Obligations.

In general, the Special Taxes, and all other taxes, assessments and charges also collected on the tax roll, are on a parity, that is, are of equal priority. Questions of priority become significant when collection of one or more of the taxes, assessments or charges is Item 8.1
Mountain House Page 1149 of 1946 41 sought by some other procedure, such as foreclosure and sale. If proceedings are brought to foreclose a delinquency, the Special Taxes will generally be on parity with the other taxes, assessments and charges, and will share the proceeds of such foreclosure proceedings on a pro-rata basis.

Enforcement of Special Taxes on Governmentally Owned Properties General. The ability of the City to foreclose the lien of delinquent unpaid Special Tax installments may be limited with regard to properties in which the Federal Deposit Insurance Corporation (the “FDIC”), the Drug Enforcement Agency, the Internal Revenue Service, or other federal agency has or obtains an interest.

Federal courts have held that, based on the supremacy clause of the United States Constitution, in the absence of Congressional intent to the contrary, a state or local agency cannot foreclose to collect delinquent taxes or assessments if foreclosure would impair the federal government interest.

The supremacy clause of the United States Constitution reads as follows: “This Constitution, and the Laws of the United States which shall be made in Pursuance thereof; and all Treaties made, or which shall be made, under the Authority of the United States, shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any Thing in the Constitution or Laws of any State to the contrary notwithstanding.” This means that, unless Congress has otherwise provided, if a federal governmental entity owns a parcel that is subject to Special Taxes within the Improvement Areas, but does not pay taxes and assessments levied on the parcel (including Special Taxes), the applicable state and local governments cannot foreclose on the parcel to collect the delinquent taxes and assessments.

Moreover, unless Congress has otherwise provided, if the federal government has a mortgage interest in the parcel and the City wishes to foreclose on the parcel as a result of delinquent Special Taxes, the property cannot be sold at a foreclosure sale unless it can be sold for an amount sufficient to pay delinquent taxes and assessments on a parity with the Special Taxes and preserve the federal government’s mortgage interest. In Rust v. Johnson (9th Circuit; 1979) 597 F.2d 174, the United States Court of Appeal, Ninth Circuit held that the Federal National Mortgage Association (“FNMA”) is a federal instrumentality for purposes of this doctrine, and not a private entity, and that, as a result, an exercise of state power over a mortgage interest held by FNMA constitutes an exercise of state power over property of the United States.

Neither the City nor the Authority has undertaken to determine whether any federal governmental entity currently has, or is likely to acquire, any interest (including a mortgage interest) in any of the parcels subject to the Special Taxes within the Improvement Areas. No assurance can be given as to the likelihood that the risks described above will materialize while the Local Obligations are outstanding.

FDIC. If any financial institution making any loan secured by real property within the Improvement Areas is taken over by the FDIC, and prior thereto or thereafter the loan (or loans) goes into default, resulting in ownership of the property by the FDIC, then the ability of the City to collect interest and penalties specified by State law and to foreclose the lien of delinquent unpaid Special Taxes may be limited.

Item 8.1
Mountain House Page 1150 of 1946 42 The FDIC’s policy statement regarding the payment of state and local real property taxes (the “Policy Statement”) provides that property owned by the FDIC is subject to state and local real property taxes only if those taxes are assessed according to the property’s value, and that the FDIC is immune from real property taxes assessed on any basis other than property value.

According to the Policy Statement, the FDIC will pay its property tax obligations when they become due and payable and will pay claims for delinquent property taxes as promptly as is consistent with sound business practice and the orderly administration of the institution’s affairs, unless abandonment of the FDIC’s interest in the property is appropriate. The FDIC will pay claims for interest on delinquent property taxes owed at the rate provided under state law, to the extent the interest payment obligation is secured by a valid lien. The FDIC will not pay any amounts in the nature of fines or penalties and will not pay nor recognize liens for such amounts. If any property taxes (including interest) on FDIC-owned property are secured by a valid lien (in effect before the property became owned by the FDIC), the FDIC will pay those claims. The Policy Statement further provides that no property of the FDIC is subject to levy, attachment, garnishment, foreclosure or sale without the FDIC’s consent. In addition, the FDIC will not permit a lien or security interest held by the FDIC to be eliminated by foreclosure without the FDIC’s consent.

The Policy Statement states that the FDIC generally will not pay non-ad valorem taxes, including special taxes and assessments, on property in which it has a fee interest unless the amount of tax is fixed at the time that the FDIC acquires its fee interest in the property, nor will it recognize the validity of any lien to the extent it purports to secure the payment of any such amounts. Special taxes imposed under the Mello-Roos Act and a special tax formula, which determines the special tax due each year, are specifically identified in the Policy Statement as being imposed each year and therefore covered by the FDIC’s federal immunity. The Ninth Circuit issued a ruling on August 28, 2001, in which it determined that the FDIC, as a federal agency, is exempt from Mello-Roos special taxes.

The Authority and the City are unable to predict what effect the application of the Policy Statement would have in the event of a delinquency in the payment of Special Taxes on a parcel within the Improvement Areas, in which the FDIC has or obtains an interest, although prohibiting the lien of the Special Taxes to be foreclosed out at a judicial foreclosure sale could reduce or eliminate the number of persons willing to purchase a parcel at a foreclosure sale.

Exemptions Under Special Tax Formula and the Mello-Roos Act. Certain properties are exempt from the Special Tax in accordance with the Special Tax Formula and the MelloRoos Act, which provides that properties or entities of the state, federal or local government are exempt from the Special Tax; provided, however, that property within the Improvement Areas acquired by a public entity through a negotiated transaction or by gift or devise, which is not otherwise exempt from the Special Tax, will continue to be subject to the Special Tax.

In addition, although the Mello-Roos Act provides that if property subject to the Special Tax is acquired by a public entity through eminent domain proceedings, the obligation to pay the Special Tax with respect to that property is to be treated as if it were a special assessment, the constitutionality and operation of these provisions of the Mello-Roos Act have not been tested, meaning that such property could become exempt from the Special Tax. The Mello-Roos Act further provides that no other properties or entities are exempt from the Special Tax unless the properties or entities are expressly exempted in a resolution of consideration to levy a new special tax or to alter the rate or method of apportionment of an existing special tax.

Item 8.1
Mountain House Page 1151 of 1946 43 Depletion of Reserve Fund
The Trustee will establish and maintain a Reserve Fund for the Bonds, which is available to pay principal of and interest on the Bonds if insufficient funds are available in the Revenue Fund. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS – Reserve Fund.” If funds in the Reserve Fund are depleted, the funds can be replenished from the proceeds of the levy and collection of the respective Improvement Area’s Special Tax that are in excess of the amount required to pay all amounts to be paid to the Authority as owner of the Local Obligations, provided however that no Improvement Area is responsible for Reserve Fund draws or deficiencies attributable to the other Improvement Area; replenishment is limited to funds available from the Improvement Area or Improvement Areas that caused the deficiency.

Additionally, replenishment (including reimbursement to the Insurer in lieu of replenishment) from the proceeds of a Special Tax levy is limited by the maximum Special Tax rates and a 10% limitation under Section 53321(d) of the Mello-Roos Act due to delinquencies or defaults. In cases of significant delinquency, these factors may result in defaults in the payment of principal of and interest on the Local Obligations and, in turn, the Bonds, however replenishment can be facilitated through foreclosure of the lien of Special Taxes. See “– Levy and Collection of Special Taxes” above.

Bankruptcy Delays
The payment of the Special Taxes, and the ability of the City to foreclose the lien of a delinquent unpaid Special Tax, may be limited by bankruptcy, insolvency or other laws generally affecting creditors’ rights or by State laws relating to judicial foreclosure.

The various legal opinions to be delivered concurrently with the delivery of the Bonds (including Bond Counsel’s approving legal opinion) will be qualified as to the enforceability of the various legal instruments by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights, by the application of equitable principles and by the exercise of judicial discretion in appropriate cases.

Although bankruptcy proceedings would not cause the Special Taxes to become extinguished, bankruptcy of a property owner or any other person claiming an interest in the property could result in a delay in superior court foreclosure proceedings and could result in the possibility of Special Tax installments not being paid in part or in full. Such a delay would increase the likelihood of a delay or default in payment of the principal of and interest on the Local Obligations, as applicable.

Disclosure to Future Purchasers
The City has recorded, in the Office of the County Recorder, a notice of the Special Tax lien with respect to the Improvement Areas. While title companies normally refer to such notices in title reports, there can be no guarantee that such reference will be made or, if made, that a prospective purchaser or lender will consider the obligations represented by the Special Taxes in the purchase of a parcel of land or a home in the Improvement Areas, or the lending of money secured by property in the Improvement Areas.

Item 8.1
Mountain House Page 1152 of 1946 44 No Acceleration; Right to Pursue Remedies
Neither the Bonds nor the Local Obligations contain a provision allowing for acceleration if a payment default or other default occurs under the Indenture or the Local Obligation Fiscal Agent Agreements. See “APPENDIX D – Summary of Certain Provisions of Principal Legal Documents.”
So long as the Bonds are in book-entry form, DTC will be the sole Bond Owner and will be entitled to exercise all rights and remedies of Bond Owners under the Bonds and the Indenture.

Potential Early Redemption of Bonds from Prepayments
Property owners within the Improvement Area are permitted to prepay their Special Taxes at any time, subject to the following limitations: property owners within Improvement Area No. 8 may only prepay up to 75% of the Facilities Special Tax and property owners within Improvement Area No. 13 may only prepay up to 55% of the Facilities Special Tax. Such prepayments will result in a redemption of the Local Obligations on the first March 1 or September 1 which is more than 30 days following the receipt of the prepayment. The proceeds of the Local Obligations so redeemed will then be used to make a mandatory redemption of the Bonds. The Bonds will be called on a pro rata basis from the proceeds of the Local Obligations redeemed from prepayments. See “THE BONDS — Redemption — Special Mandatory Redemption.”
Loss of Tax Exemption
As discussed under the caption “LEGAL MATTERS – Tax Matters,” interest on the Bonds might become includable in gross income for purposes of federal income taxation retroactive to the date the Bonds were issued as a result of future acts or omissions of the Authority in violation of its covenants in the Indenture, or of the City in violation of its covenants in the Local Obligation Fiscal Agent Agreements.

The Indenture does not contain a special redemption feature triggered by the occurrence of an event of taxability. As a result, if interest on the Bonds were to be includable in gross income for purposes of federal income taxation, the Bonds would continue to remain outstanding until maturity unless earlier redeemed pursuant to mandatory redemption. See “THE BONDS – Redemption.”
In addition, Congress has considered in the past, is currently considering and may consider in the future, legislative proposals, including some that carry retroactive effective dates, that, if enacted, would alter or eliminate the exclusion from gross income for federal income tax purposes of interest on municipal bonds, such as the Bonds. Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending or proposed federal tax legislation.

Voter Initiatives
Under the California Constitution, the power of initiative is reserved to the voters for the purpose of enacting statutes and constitutional amendments. Since 1978, the voters have exercised this power through the adoption of Proposition 13 and similar measures, including Item 8.1
Mountain House Page 1153 of 1946 45 Proposition 218, which was approved in the general election held on November 5, 1996, and Proposition 26, which was approved on November 2, 2010.

Any such initiative may affect the collection of fees, taxes and other types of revenue by local agencies such as the City. Subject to overriding federal constitutional principles, such collection may be materially and adversely affected by voter-approved initiatives, possibly to the extent of creating cash-flow problems in the payment of outstanding obligations such as the Local Obligations.

Proposition 218—Voter Approval for Local Government Taxes—Limitation on Fees, Assessments, and Charges—Initiative Constitutional Amendment, added Articles XIIIC and XIIID to the California Constitution, imposing certain vote requirements and other limitations on the imposition of new or increased taxes, assessments and property-related fees and charges.

On November 2, 2010, California voters approved Proposition 26, entitled the “Supermajority Vote to Pass New Taxes and Fees Act”. Section 1 of Proposition 26 declares that Proposition 26 is intended to limit the ability of the State Legislature and local government to circumvent existing restrictions on increasing taxes by defining the new or expanded taxes as “fees.” Proposition 26 amended Articles XIIIA and XIIIC of the State Constitution. The amendments to Article XIIIA limit the ability of the State Legislature to impose higher taxes (as defined in Proposition 26) without a two-thirds vote of the Legislature. Article XIIIC requires that all new local taxes be submitted to the electorate before they become effective. Taxes for general governmental purposes require a majority vote and taxes for specific purposes (“special taxes”) require a two-thirds vote.

The Special Taxes and the Local Obligations were each authorized by not less than a two-thirds vote of the landowners within the Improvement Area who constituted the qualified electors at the time of such voted authorization. The City believes, therefore, that issuance of the Local Obligations does not require the conduct of further proceedings under the Mello-Roos Act, Proposition 218 or Proposition 26.

Like their antecedents, Proposition 218 and Proposition 26 are likely to undergo both judicial and legislative scrutiny before the impact on the Improvement Areas can be determined.

Certain provisions of Proposition 218 and Proposition 26 may be examined by the courts for their constitutionality under both State and federal constitutional law, the outcome of which cannot be predicted.

Secondary Market for Bonds
There can be no guarantee that there will be a secondary market for the Bonds or, if a secondary market exists, that any Bonds can be sold for any particular price. Prices of bond issues for which a market is being made will depend upon then-prevailing circumstances. Such prices could be substantially different from the original purchase price.

No assurance can be given that the market price for the Bonds will not be affected by the introduction or enactment of any future legislation (including without limitation amendments to the Internal Revenue Code), or changes in interpretation of the Internal Revenue Code, or any action of the Internal Revenue Service, including but not limited to the publication of proposed or final regulations, the issuance of rulings, the selection of the Bonds for audit examination, or the course or result of any Internal Revenue Service audit or examination of the Bonds or obligations that present similar tax issues as the Bonds.

Item 8.1
Mountain House Page 1154 of 1946 46 Pandemic Diseases
In recent years, public health authorities have warned of threats posed by outbreaks of disease and other public health threats. Pandemic diseases arising in the future could have significant adverse health and financial impacts throughout the world, leading to loss of jobs and personal financial hardships, and/or actions by federal, State and local governmental authorities to contain or mitigate the effects of an outbreak.

Taxpayer assistance measures may include deferral of due dates of property taxes, which was an assistance program during the COVID-19 pandemic, and with or without a deferral some taxpayers may be unable to make their property and Special Tax payments. No assurance can be given that the property tax payment dates will not be deferred in the future, which may cause a delay in the receipt of Special Taxes. In addition, home values may be affected by a reduction in demand stemming from personal finances, or general widespread economic circumstances resulting from pandemic diseases.

Cyber Security
The City (and in turn the Authority), like many other public and private entities, relies on computer and other digital networks and systems to conduct its operations. As a recipient and provider of personal, private or other sensitive electronic information, the City is potentially subject to multiple cyber threats, including without limitation hacking, viruses, ransomware, malware and other attacks. No assurance can be given that the City’s efforts to manage cyber threats and attacks will be successful in all cases, or that any such attack will not materially impact the operations or finances of the City or the Improvement Areas, or the administration of the Bonds or the Bonds. The City is also reliant on other entities and service providers in connection with the administration of the Bonds and the Local Obligations, including without limitation the County tax collector for the levy and collection of Special Taxes, the Trustee, and the dissemination agent. While the City has certain safeguards in place, no assurance can be given that the City, the Improvement Areas and governmental entities they rely upon for administration of the Improvement Areas, the Bonds and the Local Obligations will not be affected by cyber threats and attacks in a manner that may affect the Bond owners.

CONSTITUTIONAL LIMITATIONS ON TAXATION AND APPROPRIATIONS Article XIIIA of the California Constitution, commonly known as “Proposition 13,” provides that each county will levy the maximum ad valorem property tax permitted by Proposition 13 and will distribute the proceeds to local agencies in accordance with an allocation formula based in part on pre-Proposition 13 ad valorem property tax rates levied by local agencies.

Article XIIIA limits the maximum ad valorem tax on real property to 1% of “full cash value,” which is defined as the County Assessor’s valuation of real property as shown on the 1975-76 tax bill under full cash value, or, thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment. The full cash value may be adjusted annually to reflect increases of no more than 2% per year or decreases in the consumer price index or comparable local data, or declining property value caused by damage, destruction or other factors.

Item 8.1
Mountain House Page 1155 of 1946 47 Article XIIIA exempts from the 1% tax limitation any taxes to repay indebtedness approved by the voters prior to July 1, 1978, and requires a vote of two-thirds of the qualified electorate to impose Special Taxes or any additional ad valorem, sales, or transaction taxes on real property. In addition, Article XIIIA requires the approval of two-thirds of all members of the State Legislature to change any State laws resulting in increased tax revenues. On June 3, 1986, California voters approved an amendment to Article XIIIA of the California Constitution to allow local governments and school districts to raise their property tax rates above the constitutionally mandated 1% ceiling for the purpose of paying off certain new general obligation debt issued for the acquisition or improvement of real property and approved by two-thirds of the votes cast by the qualified electorate. If any such voter-approved debt is issued, it may be on a parity with the lien of the special tax levied on the parcels within each Improvement Area.

State and local government agencies in the State, and the State itself are subject to annual appropriation limits, imposed by Article XIIIB of the State Constitution. Article XIIIB prohibits government agencies and the State from spending “appropriations subject to limitation” in excess of the appropriations limits imposed. “Appropriations subject to limitation” are authorizations to spend “proceeds of taxes,” which consist of tax revenues, certain state subventions and certain other funds, including proceeds from regulatory licenses, user charges or other fees to the extent that such proceeds exceed the cost reasonably borne by such entity in providing the regulation, product or service. No limit is imposed on appropriations of funds which are not “proceeds of taxes” such as debt service on indebtedness existing or authorized before January 1, 1979, or subsequently authorized by the voters, appropriations required to comply with mandates of courts or the federal government, reasonable user charges or fees and certain other non-tax funds.

TAX MATTERS
Federal Tax Status. In the opinion of Jones Hall LLP, as Bond Counsel, subject, however to the qualifications set forth below, under existing law, the interest on the Bonds is excluded from gross income for federal income tax purposes and such interest is not an item of tax preference for purposes of the federal alternative minimum tax. Interest on the Bonds may be subject to the corporate alternative minimum tax.

The opinions set forth in the preceding paragraph are subject to the condition that the Authority complies with all requirements of the Internal Revenue Code of 1986, as amended (the “Tax Code”), that must be satisfied subsequent to the issuance of the Bonds. The Authority and the City ahve covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the inclusion of such interest in gross income for federal income tax purposes to be retroactive to the date of issuance of the Bonds.

Tax Treatment of Original Issue Discount and Premium. If the initial offering price to the public (excluding bond houses and brokers) at which a Bond is sold is less than the amount payable at maturity thereof, then such difference constitutes “original issue discount” for purposes of federal income taxes and State of California personal income taxes. If the initial offering price to the public (excluding bond houses and brokers) at which a Bond is sold is greater than the amount payable at maturity thereof, then such difference constitutes “original issue premium” for purposes of federal income taxes and State of California personal income taxes. De minimis original issue discount and original issue premium is disregarded.

Under the Tax Code, original issue discount is treated as interest excluded from federal gross income and exempt from State of California personal income taxes to the extent properly Item 8.1
Mountain House Page 1156 of 1946 48 allocable to each owner thereof subject to the limitations described in the first paragraph of this section. The original issue discount accrues over the term to maturity of the Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straightline interpolations between compounding dates). The amount of original issue discount accruing during each period is added to the adjusted basis of such Bonds to determine taxable gain upon disposition (including sale, redemption, or payment on maturity) of such Bond. The Tax Code contains certain provisions relating to the accrual of original issue discount in the case of purchasers of the Bonds who purchase the Bonds after the initial offering of a substantial amount of such maturity. Owners of such Bonds should consult their own tax advisors with respect to the tax consequences of ownership of Bonds with original issue discount, including the treatment of purchasers who do not purchase in the original offering, the allowance of a deduction for any loss on a sale or other disposition, and the treatment of accrued original issue discount on such Bonds under federal individual and corporate alternative minimum taxes.

Under the Tax Code, original issue premium is amortized on an annual basis over the term of the Bond (said term being the shorter of the Bond’s maturity date or its call date). The amount of original issue premium amortized each year reduces the adjusted basis of the owner of the Bond for purposes of determining taxable gain or loss upon disposition. The amount of original issue premium on a Bond is amortized each year over the term to maturity of the Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). Amortized bond premium is not deductible for federal income tax purposes. Owners of premium Bonds, including purchasers who do not purchase in the original offering, should consult their own tax advisors with respect to State of California personal income tax and federal income tax consequences of owning such Bonds.

California Tax Status. In the further opinion of Bond Counsel, interest on the Bonds is exempt from California personal income taxes.

Other Tax Considerations. Current and future legislative proposals, if enacted into law, clarification of the Tax Code or court decisions may cause interest on the Bonds to be subject, directly or indirectly, to federal income taxation or to be subject to or exempted from state income taxation, or otherwise prevent beneficial owners from realizing the full current benefit of the tax status of such interest. The introduction or enactment of any such legislative proposals, clarification of the Tax Code or court decisions may also affect the market price for, or marketability of, the Bonds. It cannot be predicted whether or in what form any such proposal might be enacted or whether, if enacted, such legislation would apply to bonds issued prior to enactment.

The opinions expressed by Bond Counsel are based upon existing legislation and regulations as interpreted by relevant judicial and regulatory authorities as of the date of such opinion, and Bond Counsel has expressed no opinion with respect to any proposed legislation or as to the tax treatment of interest on the Bonds, or as to the consequences of owning or receiving interest on the Bonds, as of any future date. Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending or proposed federal or state tax legislation, regulations or litigation, as to which Bond Counsel expresses no opinion.

Owners of the Bonds should also be aware that the ownership or disposition of, or the accrual or receipt of interest on, the Bonds may have federal or state tax consequences other than as described above. Other than as expressly described above, Bond Counsel expresses Item 8.1
Mountain House Page 1157 of 1946 49 no opinion regarding other federal or state tax consequences arising with respect to the Bonds, the ownership, sale or disposition of the Bonds, or the amount, accrual or receipt of interest on the Bonds.

LEGAL OPINION
The validity of the Bonds and certain other legal matters are subject to the approving opinion of Jones Hall LLP, as Bond Counsel. A complete copy of the proposed form of Bond Counsel opinion is contained in APPENDIX E to this Official Statement, and the final opinion will be made available to registered owners of the Bonds at the time of delivery. The fees of Bond Counsel are contingent upon the sale and delivery of the Bonds.

NO RATINGS
The Authority has not applied to a rating agency for the assignment of a rating to the Bonds and does not contemplate applying for a rating.

NO LITIGATION
At the time of delivery of and payment for the Bonds, the City Attorney will deliver his opinion that to the best of its knowledge there is no action, suit, proceeding, inquiry or investigation at law or in equity before or by any court or regulatory agency pending against the Authority or the City affecting its existence or the titles of its officers to office or seeking to restrain or to enjoin the issuance, sale or delivery of the Bonds or the Local Obligations, the application of the proceeds thereof in accordance with the Indenture and each Local Obligation Fiscal Agent Agreement, or the collection or application of the special taxes to pay the principal of and interest on the Bonds or the Local Obligations, or in any way contesting or affecting the validity or enforceability of the Bonds or the Local Obligations, the Indenture, each Local Obligation Fiscal Agent Agreement or any action of the Authority or City contemplated by any of said documents, or in any way contesting the completeness or accuracy of this Official Statement or any amendment or supplement thereto, or contesting the powers of the Authority or the City or its authority with respect to the Bonds or any action of the Authority or City contemplated by any of said documents.

CONTINUING DISCLOSURE
The City. The City has covenanted for the benefit of owners of the Bonds to provide certain financial information and operating data relating to the Bonds and each Improvement Area by not later than nine months after the end of the City’s fiscal year (presently June 30) in each year (the “City Annual Report”) commencing with its report for Fiscal Year 2025-26 (due April 1, 2027) and to provide notices of the occurrence of certain enumerated events.

The City Annual Report and notices of listed events will be filed with the Municipal Securities Rulemaking Board. The covenants of the City have been made in order to assist the Underwriter in complying with Securities Exchange Commission Rule 15c2-12(b)(5) (the “Rule”). The specific nature of the information to be contained in the Annual Report or the notices of listed events by the City is summarized in “APPENDIX F – FORM OF CONTINUING DISCLOSURE CERTIFICATE.”
Item 8.1
Mountain House Page 1158 of 1946 50 The City was incorporated on July 1, 2024, having previously encompassed all of the land within the Mountain House Community Services District (“MHCSD”) and much of the staff of MHCSD now holds staff positions at the City. MHCSD has previously entered into continuing disclosure undertakings under the Rule in connection with the issuance of other long-term obligations for which it is an obligated person.

During the previous five years, the City (and its predecessor MHCSD) has complied with its prior undertakings under the Rule.

The City has retained Kosmont Financial Services to monitor and disseminate its filing requirements under the Continuing Disclosure Certificate.

Lennar Homes. Lennar Homes is not an obligated party under the Rule but has voluntarily agreed to provide semi-annual continuing disclosure for the benefit of Bondowners and will enter into a separate Continuing Disclosure Certificate (Developer) for each Improvement Area covenanting to provide certain information regarding the development of its property within such Improvement Area, and notice of certain enumerated events as they occur until such time as the termination date in the Continuing Disclosure Certificate occurs. The specific nature of the information to be provided by Lennar Homes with respect to each Improvement Area is summarized in “APPENDIX F – FORM OF CONTINUING DISCLOSURE CERTIFICATE.”
With respect to Improvement Area No. 8, Lennar Homes’ continuing disclosure obligations shall terminate at such time as Lennar Homes owns (or is under option to own) less than 77 taxable parcels in Improvement Area No. 8.

With respect to Improvement Area No. 13, Lennar Homes’ continuing disclosure obligations shall terminate at such time as Lennar Homes owns (or is under option to own) less than [___] taxable parcels in Improvement Area No. 13.

Lennar Homes’ Northern California Division is the division which will be responsible for complying with its obligations under its Property Owner Continuing Disclosure Certificate.

Lennar Homes has advised the Authority that, based on a review of prior continuing disclosure obligations in Northern California, encompassing Lennar Homes’ Northern California Division, Lennar Homes represents that, other than as disclosed in this paragraph, to the actual knowledge of Lennar Homes, Lennar Homes has not failed in any material respect to comply with any previous undertaking by it to provide periodic continuing disclosure reports or notices of material events with respect to community facilities districts or assessment districts in California within the past five years. However, in connection with the $5,795,000 City of Rancho Cordova Grantline 208 Community Facilities District No. 2018-1 Special Tax Bonds, Series 2021B, Lennar Homes inadvertently failed to file the initial annual report by the due date of April 1, 2022, but filed a curative report on September 21, 2022.

Item 8.1
Mountain House Page 1159 of 1946 51 MUNICIPAL ADVISOR
The City, for itself and the Authority, has retained Kosmont Financial Services, El Segundo, California, as registered municipal advisor (the “Municipal Advisor”) in connection with the issuance of the Bonds. The Municipal Advisor is not obligated to undertake, and has not undertaken to make, an independent verification or assume responsibility for the accuracy, completeness, or fairness of the information contained in this Official Statement. The fees of the Municipal Advisor are contingent upon the sale and delivery of the Bonds.

UNDERWRITING
The Bonds were purchased through negotiation by Piper Sandler & Co., as underwriter (the “Underwriter”). The Underwriter agreed to purchase the Bonds at a price of $_____________ (which is equal to the par amount of the Bonds, plus/less an original issue premium/discount of $_____________ and less the Underwriter’s discount of $_____________). The initial public offering prices set forth on the cover page hereof may be changed by the Underwriter. The Underwriter may offer and sell the Bonds to certain dealers and others at a price lower than the public offering prices set forth on the cover page hereof.

CONTINGENT FEES
In connection with the issuance of the Bonds, some or all of the fees or other compensation payable to the City and certain professionals involved with the offering of the Bonds is contingent upon the issuance and delivery of the Bonds. Those entities include:
• The City, for itself and the Authority, as the issuer; • Piper Sandler & Co., as the Underwriter;
• Jones Hall LLP, as Bond Counsel and Disclosure Counsel; • Stradling Yocca Carlson & Rauth LLP, as Underwriter’s Counsel; • Goodwin Consulting Group, Inc., as Special Tax Consultant; • Kosmont Financial Services, as Municipal Advisor; and • Computershare Trust Company, N.A., as Fiscal Agent and Trustee.

Item 8.1
Mountain House Page 1160 of 1946 52 EXECUTION
The execution and delivery of this Official Statement have been duly authorized by the Authority and the City.

MOUNTAIN HOUSE FINANCING

AUTHORITY
By:

Steve Pinkerton
Executive Director

CITY OF MOUNTAIN HOUSE
By:

Steve Pinkerton
City Manager
Item 8.1
Mountain House Page 1161 of 1946 A-1-1
APPENDIX A-1
IMPROVEMENT AREA NO. 8 AND SPECIAL TAX BONDS
The City is issuing special tax bonds (the “Bonds”) for its City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) (the “District”) Improvement Area No. 8 (“Improvement Area No. 8”), located in San Joaquin County, California in the principal amount shown in the forepart of this Official Statement.

Use of Proceeds of the Bonds. The Bonds are being issued to finance impact fees payable by the owner Lennar Homes of California, LLC, a California limited liability company (“Lennar Homes”) or its land banks AG EHC II (LEN) CA 2, L.P., a Delaware limited partnership (the “AG CA 2 Land Bank”) and AG EHC II (LEN) CA 4B, L.P., a Delaware limited partnership (the “AG CA 4B Land Bank” and, collectively, the “AG Land Banks”), to be used for public improvements and/or public improvements being constructed, as a condition of development in Improvement Area No. 8. Proceeds will also be used to pay for a proportionate share of costs of issuance of the Bonds, capitalized interest and the Reserve Fund for the Bonds. The AG Land Banks are not affiliates of Lennar Homes.

Improvement Area No. 8 Location. Improvement Area No. 8 is located on the north side of Byron Road at N. Central Parkway, within the City of Mountain House, San Joaquin County, California.

Development Within the Improvement Area No. 8. The property within Improvement Area No. 8 consists of 503 detached residential lots comprising Tract Nos. 3968, 3969, 3970, 3971, and 3972. Lennar Homes development plan is to develop the lots into 503 single-family detached homes in four product lines known as “Lugano at Lakeshore,” “Maggiore at Lakeshore,” “Mezzano at Lakeshore,” and “Turano at Lakeshore.” The lots are the subject of two land bank arrangements whereby Lennar Homes has the option, but not the obligation, to acquire lots pursuant to separate takedown schedules. See “– Land Bank Arrangement – Improvement Area No. 8” below.

As of July 18, 2026, Lennar Homes had acquired 227 lots from the AG Land Banks and had conveyed 137 completed homes to individual homebuyers. The remaining 366 lots owned by Lennar Homes and the AG Land Banks consisted of 45 completed homes (including eight models), 26 partially completed homes (including homes with building permits but where vertical construction had not commenced) and 295 finished or partially improved lots without building permits issued. Construction of production homes began in October 2024, initial sales occurred in February 2025, the model homes opened in March 2025, and initial home closings occurred in April 2025. As of July 18, 2026, [___] homes were under contract with individual homebuyers but had not closed escrow. Buildout or final home closings are anticipated by the end of August 2027.

Additional details as of July 18, 2026 are set forth in the table below, which assumes Lennar Homes acquires all lots from the AG Land Banks:

Item 8.1
Mountain House Page 1162 of 1946 A-1-2
Lennar Homes – Status of Development
“Lugano, Maggiore, Mezzano and Turano @ Lakeshore”
(Improvement Area No. 8)
As of July 18, 2026
Product
Line
Approx.

Square
Footage
Range
Total
Units
Planned(1)
Completed
Homes owned
by Lennar
Homes and AG
Land Banks(2)
Partially
Completed
Homes
(Building
Permits)(3)
Remaining
Partially
Improved/Fin
ished Lots(4)
Homes Sold
and Closed
Estimated
Base Price Range(5)
Lugano 1,829 – 2,289 134 12 4 83 35 $826,880 - $914,880 Maggiore 2,356 – 2,772 113 14 6 64 29 $910,880 - $999,880 Mezzano 2,258 – 3,324 126 11 7 78 30 $926,880 - $1,168,880 Turano 2,710 – 3,711 130 8 9 70 43 $1,035,880 - $1,243,880 TOTAL: 503 45 26 295 137
_____________
(1) Includes 276 lots owned by the AG Land Banks and scheduled to be acquired by Lennar Homes pursuant to take down schedules.

There is no guarantee that Lennar Homes will acquire the lots owned by the AG Land Banks as planned. (2) Includes 8 completed model homes and 37 completed production homes, all owned by Lennar Homes as of August 18, 2026. (3) Represents [___] lots in various stages of construction and [__] lots with building permits but where vertical construction had not commenced as of August 18, 2026. Includes 20 lots owned by Lennar Homes and 6 lots owned by the AG Land Banks. (4) Represents remaining lots without building permits as of July 18, 2026, including 25 lots owned by Lennar Homes and 270 lots owned by the AG Land Banks.
(5) Estimated base sales prices are as of July 18, 2026 and subject to change. Base sales prices exclude lot premiums, options and extras and any incentives or price reductions.

Source: Lennar Homes.

As of July 18, 2026, all required backbone and in-tract infrastructure was substantially complete for the development and sale of all planned 503 single-family homes within Improvement Area No. 8. Remaining backbone infrastructure and in-tract infrastructure needed for the development of Improvement Area No. 8 consists of completion of in-tract streets, curb, gutters and sidewalks, street landscaping, lighting, striping, and storm water protection measures, and park and landscaping improvements, including the construction of an approximately five acre neighborhood park, a large portion of the Greenway Loop Park consisting of approximately 25 acres of open space trails, two mini-parks or playgrounds, and a trail system known as the Union Pacific Railroad Trail. All four park areas must be completed prior to the issuance by the City of more than 764 building permits for dwelling units in Neighborhood J proposed to be developed with approximately [___] residential units (including the 503 units in Improvement Area No. 8 being developed by Lennar Homes) unless prior exception is approved by City management. Construction of the Union Pacific Railroad Trail commenced in May 2026, construction of the mini-parks [is expected to commence][commenced] in summer 2026, and construction of the relevant portion of the Greenway Loop Park improvements and neighborhood park is expected to commence in the third or fourth quarter of 2026. The completion of all park improvements is expected to occur by late 2027 or early 2028, subject to plan approval and weather conditions. Lennar Homes expects to incur approximately $[33.5] million in remaining costs to complete the remaining backbone infrastructure and in-tract infrastructure for Improvement Area No. 8.

Lennar Homes reserves the right to change its development at any time without notice.

Additionally, homes under contract to be sold may not result in closed escrows as sales Item 8.1
Mountain House Page 1163 of 1946 A-1-3
contracts are subject to cancellation by the homebuyer. See “SPECIAL RISK FACTORS” in the forepart of this Official Statement for a discussion of risk factors.” Land Bank Arrangement – Improvement Area No. 8. Lennar Homes and Mountain House Developers, LLC, a Delaware limited liability company entered into a Purchase and Sale Agreement and Joint Escrow Instructions, dated July 28, 2023 (the “Purchase Agreement”) for the purchase by Lennar Homes of the 503 residential lots in Improvement Area No. 8, comprising Tract Nos. 3968, 3969, 3970, 3971, and 3972. Prior to the applicable close of escrow under the Purchase Agreement, Lennar Homes assigned its rights thereunder to the AG CA 2 Land Bank pursuant to that certain Nomination Agreement between the AG CA 2 Land Bank, as nominee, and Lennar Homes, dated August 22, 2023 (the “PSA Assignment”).

The PSA Assignment resulted in AG CA 2 Land Bank acquiring the land subject to the Purchase Agreement, in order to set up a land banking structure. The AG CA 2 Land Bank subsequently conveyed a portion of the lots to an affiliate, the AG CA 4B Land Bank. The AG Land Banks are not affiliates of Lennar Homes.

To facilitate the land banking structure, Lennar Homes and the AG CA 2 Land Bank entered into an Option Agreement (Mountain House 2, California), dated August 22, 2023 (as amended, the “AG 2 Option Agreement”) whereby Lennar Homes has the option, but not the obligation, to purchase the 231 residential lots within Tract Nos. 3968 and 3972 from the AG CA 2 Land Bank pursuant to a takedown schedule.

Additionally, Lennar Homes and the AG CA 2 Land Bank entered into an Option Agreement (Mountain House 3, California), dated August 22, 2023 (as amended, the “AG 3 Option Agreement” and, together with the AG 2 Option Agreement, the “AG Option Agreements”) whereby Lennar Homes has the option, but not the obligation, to purchase the 272 residential lots within Tract Nos. 3969, 3970 and 3971 from the AG CA 2 Land Bank. The AG CA 2 Land Bank subsequently assigned the AG 3 Option Agreement to an affiliate, the AG CA 4B Land Bank.

In addition to the AG Option Agreements, Lennar Communities, Inc. (the “Contractor”), a Lennar Homes affiliate, and the AG Land Banks entered into separate Construction Agreements (the “AG Construction Agreements”) granting Contractor the right to enter upon the land subject to the AG Option Agreements, for the purpose of, among other things, constructing related subdivision improvements thereon before Lennar Homes acquires the land subject to the AG Option Agreements from the AG Land Banks. Pursuant to the AG Option Agreements, Lennar Homes has the right to enter upon the land subject to the AG Option Agreements for the purpose of constructing homes thereon before Lennar Homes acquires the subject land.

Pursuant to the AG Option Agreements, Lennar Homes is required to, among other things, cause the completion and satisfaction of the certain on-site and offsite improvements.

During the term of the AG Option Agreements, Lennar Homes is obligated to pay all taxes on the subject land, including the Special Taxes. Upon termination or expiration thereof, the AG Land Banks would be solely responsible for the payment of taxes, including the Special Taxes, for any land that they own.

Item 8.1
Mountain House Page 1164 of 1946 A-1-4
Under the terms of the AG Option Agreements, the AG Land Banks granted Lennar Homes the exclusive right and option to purchase all 503 residential lots subject to the AG Option Agreements in consideration for (a) the covenants of Lennar Homes to timely pay monthly option payments; and (b) upon exercise of the option, the payment of the purchase price for each set of lots acquired.

The 503 lots in Improvement Area No. 8 are scheduled to be acquired by Lennar Homes pursuant to two takedown schedules, typically on the 18th calendar day of each month beginning June 18, 2024, through September 18, 2027, for the residential lots subject to AG 2 Option Agreement, and beginning September 18, 2024, through September 18, 2027, for the residential lots subject to the AG 3 Option Agreement, subject to Lennar Homes’ right to acquire more lots than scheduled and at earlier times so long as the lots identified in the takedown schedule are acquired by the applicable takedown date and Lennar Homes complies with the terms under the applicable AG Option Agreement for such accelerated closings, and further subject to Lennar Homes’ right to defer acquisition of a limited number of lots for a period of one month at a time so long as Lennar Homes pays a per lot hiatus fee each time Lennar Homes elects to defer such acquisition and complies with the terms under the applicable AG Option Agreement for such deferred lots. The failure to timely acquire lots according to the AG Option Agreements could result in a termination of the AG Option Agreements, as applicable, which could result in Lennar Homes no longer having a right to purchase any of the remaining lots under the AG Option Agreements, as applicable.

Through the 33rd option period ending May 18, 2026, Lennar Homes has acquired a total of 197 lots and deferred the acquisition of 43 lots under the AG Option Agreements.

Lennar Homes plans to commence home construction on the deferred lots, and acquire such lots closer to completion of home construction thereon. Lennar Homes is obligated to takedown all lots subject to the AG Option Agreements by the 49th option period ending September 18, 2027. No assurance can be given that the acquisition of the remaining 306 residential lots Lennar Homes plans to acquire under the AG Option Agreements will occur as expected.

The following tables reflect Lennar Homes’ takedown schedules for acquiring the remaining lots in Improvement Area No. 8:

Item 8.1
Mountain House Page 1165 of 1946 A-1-5
Lennar Homes Takedown Schedule
AG 2 Option Agreement
(As of July 18, 2026)
AG 2
Option
Period
Date Option
Period Expires
Cumulative
Lugano
Cumulative
Maggiore
Cumulative
Mezzano
Cumulative
Turano
Cumulative
Total (1)
1-35 Through 7/18/26 2 2 68 66 138
36 8/18/26 2 2 72 72 148
37 9/18/26 2 2 74 72 150
38 10/18/26 2 2 80 78 162
39 11/18/26 2 2 80 78 162
40 12/18/26 2 2 86 78 168
41 1/18/27 2 2 91 84 179
42 2/18/27 2 2 91 90 185
43 3/18/27 2 2 97 90 191
44 4/18/27 2 2 97 96 197
45 5/18/27 2 2 97 96 197
46 6/18/27 2 2 97 102 203
47 7/18/27 2 2 97 102 203
48 8/18/27 2 2 97 108 209
49 9/18/27 2 2 97 130 231
_____________
(1) As of July 18, 2026, Lennar Homes has acquired 117 lots and has elected to defer the takedown of 21 lots under the AG 2 Option Agreement.

Source: Lennar Homes.

Lennar Homes Takedown Schedule
AG 3 Option Agreement
(As of July 18, 2026)
AG 3
Option
Period
Date Option
Period Expires
Cumulative
Lugano
Cumulative
Maggiore
Cumulative
Mezzano
Cumulative
Total (1)
1-35 Through 7/18/26 64 67 0 131
36 8/18/26 70 67 0 137
37 9/18/26 75 72 0 147
38 10/18/26 75 77 0 152
39 11/18/26 80 77 0 157
40 12/18/26 85 82 0 167
41 1/18/27 85 87 0 172
42 2/18/27 90 87 0 177
43 3/18/27 95 92 0 187
44 4/18/27 95 97 0 192
45 5/18/27 100 97 0 197
46 6/18/27 106 102 2 210
47 7/18/27 106 107 8 221
48 8/18/27 111 111 8 230
49 9/18/27 132 111 29 272
_____________
(1) As of July 18, 2026, Lennar Homes has acquired 110 lots and has elected to defer the takedown of 21 lots under the AG 3 Option Agreement.

Source: Lennar Homes.

The AG Land Banks are serving as the land banks for Lennar Homes and are not homebuilders. In the event Lennar Homes does not acquire all lots owned by the AG Land Banks, or the right to purchase the remaining lots expires or is terminated, the AG Land Banks would attempt to market and sell such lots to another homebuilder.

Item 8.1
Mountain House Page 1166 of 1946 A-1-6
The AG Land Banks. According to the AG Land Banks, the AG Land Banks are affiliates of, and managed by, Angelo Gordon & Co., L.P. (“Angelo Gordon”). Angelo Gordon is a privately-held alternative investment firm founded in 1988 and headquartered in New York, with associated offices across the United States, Europe and Asia. Angelo Gordon manages approximately $73 billion across a broad range of credit and real estate strategies. Affiliates of the AG Land Banks have entered into land banking arrangements with Lennar Corporation and its affiliated entities on more than 200 residential development projects. Neither the AG Land Banks nor Angelo Gordon are affiliated entities of Lennar Homes.

Flood Zone. The lots in Improvement Area No. 8 are not in a Special Flood Hazard Area and are located in FEMA-designated Flood Zone X (outside of the 500-year floodplain) per Community Panel No. 06077C0570F dated October 16, 2009.

Fire Hazard Zone. The Fire and Resource Assessment Program of CalFire has classified areas of the County by Fire Hazard Severity Zones. The CalFire Local Responsibility Area (“LRA”) Fire Hazard Severity Zone as identified by the State Fire Marshall in the newly revised map dated February 24, 2025 places the project within the “Incorporated City” LRA.

In recent years, wildfires have caused extensive damage throughout the State. Certain of these fires have burned thousands of acres and in some cases destroyed thousands of homes. In the case of the Los Angeles wildfires at the beginning of the year, entire neighborhoods were destroyed. There can be no assurances that wildfires will not affect the subject property whether or not it has been identified “at-risk” by CAL FIRE. Property damage due to wildfire could result in significant changes in the market value of subject property.

The Developer. Lennar Homes is based in Irvine, California and has been in the business of developing residential real estate communities in California since 1996. Lennar Homes is wholly-owned by U.S. Home, LLC, a Delaware limited liability company (“U.S.

Home”). U.S. Home is wholly-owned by Lennar Corporation, which is based in Miami, Florida (“Lennar Corporation”). Founded in 1954, Lennar Corporation completed its initial public offering in 1971 and listed its common stock on the New York Stock Exchange in 1972. Lennar Corporation’s Class A and Class B common stock are listed on the New York Stock Exchange under the symbols “LEN” and “LEN.B.” respectively. Lennar Corporation is one of the largest homebuilders in the United States based on home sales revenues and net earnings, and operates under a number of brand names, including Lennar Homes and U.S. Home. Lennar Homes primarily develops residential communities both within the Lennar Corporation family of builders and through consolidated and unconsolidated partnerships in which Lennar Homes maintains an interest.

Lennar Corporation is subject to the informational requirements of the Securities Exchange Act of 1934, as amended, and, in accordance therewith, files reports, proxy statements, and other information, including financial statements, with the Securities and Exchange Commission (the “SEC”). Such filings, particularly the Annual Report on Form 10-K and its most recent Quarterly Report on Form 10-Q, set forth, among other things, certain data relative to the consolidated results of operations and financial position of Lennar Corporation and its consolidated subsidiaries, including Lennar Homes, as of such dates.

The SEC maintains a website that contains reports, proxy and other information statements and other information regarding registrants that file electronically with the SEC, including Lennar Corporation. The address of such website is www.sec.gov. All documents filed Item 8.1
Mountain House Page 1167 of 1946 A-1-7
by Lennar Corporation pursuant to the requirements of the Exchange Act after the date of this Official Statement will be available for inspection in such manner as the SEC prescribes.

Copies of Lennar Corporation’s Annual Report and related financial statements, prepared in accordance with generally accepted accounting standards, are available from Lennar Corporation’s website at www.lennar.com.

The foregoing website addresses and references to filings with the SEC are given for reference and convenience only, and the information on such websites and on file with the SEC does not form a part of this Official Statement and is not incorporated by reference herein. No representation is made in this Official Statement as to the accuracy or adequacy of the information contained on such websites. Lennar Corporation and Lennar Homes are not obligated to advance funds for construction or development or to pay ad valorem property taxes or the Special Taxes and investors should not rely on the information and financial statements contained on such websites in evaluating whether to buy, hold or sell the CFD Bonds.

Financing Plan. To date, Lennar Homes has financed its various site development and homebuilding costs related to its development within Improvement Area No. 8 through internally generated funds (which may include funding from its parent company and home sales proceeds). However, home sales revenues from Lennar Homes’ activities in the District are not segregated and set aside for completing its development activities in the District.

Although Lennar Homes expects to have sufficient funds available to complete its development in Improvement Area No. 8as described in this Official Statement, no assurance can be given that amounts necessary to fund the remaining development costs will be available to Lennar Homes source when needed. Neither Lennar Homes, nor other entity or person is under any legal obligation of any kind to expend funds for the development of and construction of homes on Lennar Homes’ property in Improvement Area No. 8. Any contributions by Lennar Homes or any other entity or person to fund the costs of such development are entire voluntary.

Lennar Homes has no legal obligation to Bond Owners to make any such funds available for construction or development, or the payment of ad valorem property taxes or the Special Taxes.

If and to the extent the aforementioned sources of funds are inadequate to pay the costs to complete the planned development by Lennar Homes within Improvement Area No. 8and other financing is not put into place, there could be a shortfall in the funds required to complete the remaining planned development by Lennar homes or to pay ad valorem property taxes or Special Taxes related to Lennar Homes’ property in Improvement Area No. 8and the remaining portions of such development may not be completed. Many factors beyond Lennar Homes’ control, or a decision by Lennar Homes to alter its current plans, may cause the actual sources and uses to differ from the projections.

Item 8.1
Mountain House Page 1168 of 1946 A-1-8
Rate and Method. The Special Tax will be levied each year on parcels within Improvement Area No. 8 in an amount at least sufficient to pay debt service on outstanding Bonds and Administrative Expenses for Improvement Area No. 8, and the Bonds have been sized so that the Maximum Special Taxes that can be levied annually net of Priority Administrative Expenses will equal at least 110% of debt service on such Bonds. The Special Tax escalates at 2% per year. See APPENDIX A-3 for a complete copy of the Rate and Method.

The Special Tax rates for Fiscal Year 2027-28 are set forth in the following table:

Improvement Area No. 8 of
Community Facilities District No. 2024-1
(Public Facilities and Services)
Base Facilities Special Tax Rates – Fiscal Year 2027-28 Developed and Final Map Property
FY 2027-28
Base Facilities
Land Use Category Village Special Tax (1)(2)
Single Family Property Village 1 $1,279.82 per Residential Unit Single Family Property Village 2 $1,761.60 per Residential Unit Single Family Property Village 3 $1,944.14 per Residential Unit Single Family Property Village 4 $2,450.32 per Residential Unit Other Property N/A $16,676.88 per Acre
Undeveloped Property
FY 2027-28
Base Facilities
Special Tax Category Village Special Tax (1)(2)
Undeveloped Property N/A $16,676.88 per Acre
(1) On July 1 each fiscal year, the Maximum Facilities Special Taxes shall be increased by two percent of the amount in effect in the previous fiscal year.
(2) Represents the Maximum Facilities Special Tax rates based on currently-expected land uses in the Improvement Area. Subject to change pursuant to Section D of the RMA.

Source: Goodwin Consulting Group, Inc.

Item 8.1
Mountain House Page 1169 of 1946 A-1-9
Projected Special Tax Levy by Village. The following table shows the projected special tax levy among parcels in Improvement Area No. 8 for Fiscal Year 2027-28.

Improvement Area No. 8 of
Community Facilities District No. 2024-1
(Public Facilities and Services)
Projected Fiscal Year 2027-28 Facilities Special Tax Levy (1) Projected
Development Status Village
Projected
FY 2027-28
Maximum Facilities
Special Tax
Projected
FY 2027-28
Actual Facilities
Special Tax (2)*
Developed Property Village 1 $65,271 $65,271
Developed Property Village 2 86,318 86,318
Developed Property Village 3 93,319 93,319
Developed Property Village 4 147,019 147,019
Final Map Property Village 1 106,225 46,130
Final Map Property Village 2 112,742 48,960
Final Map Property Village 3 151,643 65,852
Final Map Property Village 4 171,522 74,486
$934,060 $627,355
*Preliminary, subject to change.
(1) As of July 18, 2026, the date of value, final maps had been recorded for all villages, and 208 building permits had been issued for construction of new homes. Assumes no additional development. (2) Includes debt service due in 2028 on the Series 2025 Special Tax Bonds, Series 2026 Special Tax Bonds, and estimated administrative expenses in the amount of $44,737. The Priority Administrative Expense for fiscal year 2027-28 is $44,737 and escalates by two percent per year.

Source: Goodwin Consulting Group, Inc.

Special Tax Levy; Delinquencies. Fiscal Year 2025-26 was the first year the special tax is levied in Improvement Area No. 8. The following table shows the collection and delinquency information for Improvement Area No. 8 as of the date shown.

Improvement Area No. 8 of
Community Facilities District No. 2024-1
(Public Facilities and Services)
Delinquency History as of August 12, 2026(1)
Fiscal Year
Total Facilities
Special Tax
Levied
Parcels
Subject to
Levy
Parcels
Delinquent (2)
Amount
Delinquent (2)
Delinquency
Rate (2)
2025-26 $350,135 195 2 $2,112 0.60%
*Preliminary, subject to change.
(1) Delinquent amounts do not include penalties, interest, or fees. The District is a participant in the County's Teeter Plan and as such receives from the County 100% of the proceeds of the Facilities Special Taxes levied but none of the penalties or interest in the case of delinquencies.
(2) Reflects unpaid Facilities Special Taxes from fiscal year 2025-26 as of August 12, 2026.

Sources: San Joaquin County Tax Collector's Office; Goodwin Consulting Group, Inc.

Valuation of Taxable Property. Property in Improvement Area No. 8 subject to the Special Tax is security for the Bonds. To ascertain the market value of taxable property within Improvement Area No. 8 the City commissioned an appraisal of 390 taxable lots without a complete assessed valuation on the Fiscal Year 2026-27 County property tax roll. In addition, Item 8.1
Mountain House Page 1170 of 1946 A-1-10
Improvement Area No. 8 also contains 113 taxable parcels comprising completed, and assessed, single-family homes, which were not a part of the property appraised. Together, the combined appraised value of the 390 properties appraised, plus the 113 properties with a complete assessed value is $272,154,289.

History of Assessed Valuation. The assessed valuation for Fiscal Years 2024-25 through 2026-27 is set forth in the following table:

Fiscal
Year
Land
Assessed
Value
Improvement
Assessed
Value
Total
Assessed
Value
Number of
Permits
Issued (1)(2)
2024-25 $61,402,980 $0 $61,402,980 0
2025-26 86,221,465 0 86,221,465 195
2026-27 103,309,683 68,955,476 172,265,159 208
(1) Represents the number of parcels for which a building permit for new construction was issued prior to June 30 of the prior fiscal year. As of June 30, 2026, 208 building permits had been issued. (2) As of July 18, 2026, the date of value, 208 building permits had been issued.

Sources: San Joaquin County Assessor’s Office; Goodwin Consulting Group, Inc.

The Appraisal. As noted above, City commissioned an appraisal of 390 taxable lots without a complete assessed valuation on the Fiscal Year 2026-27 County property tax roll. Of the 390 single-family residential lots appraised, there were 69 completed single-family homes within Improvement Area No. 8 not currently assessed at or above $750,000 by the San Joaquin County Assessor; as such, a “not-less than” estimate of market value for the smallest floor plan per product line constructed within Improvement Area No. 8 was appraised and assigned to each respective Assessor’s parcel that meets this criteria.

The appraisal report (the “Appraisal”), prepared by Integra Realty Resources, Sacramento, California indicates a value estimate of all the taxable land in Improvement Area No. 8 of $272,154,289 as of the July 18, 2026 date of value (which value includes the County assessed valuation of the 113 completed home parcels which were not separately appraised), subject to the conditions and qualifications set forth in the Appraisal, which include the value added from proceeds of the Bonds and the effect of the lien of the Special Taxes for Improvement Area No. 8. The Appraisal includes detailed information about the land within Improvement Area No. 8 including property characteristics, zoning, flood zone and seismic zone designations, utility providers, as well as a map, photos and entitlements in place and improvements as of the date of the valuation. The complete Appraisal is included as an appendix to this Official Statement and should be read in its entirety. The following table shows the conclusions of value in the Appraisal, by ownership.

Owner Value Conclusion
Individual Homeowners $30,235,000(1)
Lennar Homes 43,636,000(1)
AG CA 2 Land Bank 39,046,000
AG CA 4B Land Bank 50,952,000
Aggregate Appraised Value (390 parcels) $163,869,000
Aggregate Assessed Value (113 parcels) $108,285,289
Aggregate Cumulative Value (503 parcels) $272,154,289
__________
(1) Of the 390 single-family residential lots appraised, there were 69 completed single-family homes (owned by individual homeowners and Lennar Homes) not currently assessed at or above $750,000 by the San Joaquin County Assessor; as such, a “not-less than” estimate of market value for the smallest floor plan per product line constructed within Improvement Area No. 8 was appraised and assigned to each respective Assessor’s parcel that meets this criteria.

Source: The Appraisal.

Item 8.1
Mountain House Page 1171 of 1946 A-1-11
Value-to-Lien Ratios. The Appraisal sets forth the value of all taxable property within Improvement Area No. 8 to be $272,154,289, subject to the limiting conditions stated therein.

The principal amount of the Bonds and overlapping debt is $33,531,383*. Consequently, the estimated value of property in Improvement Area No. 8 subject to the Special Tax lien is approximately 8.1* times the principal amount of the Bonds and overlapping land-secured debt.

Other public agencies could impose additional taxes or assessment liens on the land within Improvement Area No. 8 to finance additional regional or local public improvements or services, which would result in a lower value-to-lien ratio.

Item 8.1
Mountain House Page 1172 of 1946 A-1-1
Projected Value-to-Lien Ratio by Ownership and Development Status. The following table shows the value-to-lien ratios in Improvement Area No. 8 for Fiscal Year 2027-28, based on ownership and development status. Value-to-lien ratios on individual parcels may vary considerably from any average used in the following table.

Improvement Area No. 8 of
Community Facilities District No. 2024-1
(Public Facilities and Services)
Projected Fiscal Year 2027-28 Special Tax Levy and Value-to-Lien Ratios Ownership(1) Development Status(2)
No. of
Units
Combined
Value(3)
Projected
FY 2027-28
Maximum
Facilities Special
Tax
Projected
FY 2027-28
Facilities
Special Tax
Levy (4)*
Percent of
Projected
FY 2027-28
Special Tax
Levy*
Allocated
Bonds(5)*
Overlapping
Debt(6)* Total Debt*
Average
Combined
Value-toLien*
Individual Homeowners Developed Property
Village 1 35 $29,554,619 $44,794 $44,794 7.1% $765,775 $1,555,693 $2,321,468 12.7 : 1 Village 2 29 26,766,516 51,086 51,086 8.1 873,352 1,242,291 2,115,643 12.7 : 1 Village 3 30 28,237,071 58,324 58,324 9.3 997,087 1,533,387 2,530,474 11.2 : 1 Village 4 43 46,053,431 105,364 105,364 16.8 1,801,256 2,206,448 4,007,704 11.5 : 1 Subtotal - Individual Homeowners 137 $130,611,637 $259,568 $259,568 41.4% $4,437,469 $6,537,819 $10,975,288 11.9 : 1 Lennar Homes of California, LLC Developed Property
Village 1 16 $9,917,745 $20,477 $20,477 3.3% $350,068 $700,082 $1,050,150 9.4 : 1 Village 2 20 13,291,846 35,232 35,232 5.6 602,312 869,768 1,472,080 9.0 : 1 Village 3 18 11,571,570 34,995 34,995 5.6 598,252 921,590 1,519,842 7.6 : 1 Village 4 11 8,672,491 26,954 26,954 4.3 460,786 571,872 1,032,658 8.4 : 1 Subtotal - Developed Property 65 $43,453,652 $117,657 $117,657 18.8% $2,011,419 $3,063,312 $5,074,731 8.6 : 1 Final Map Property
Village 1 6 $1,782,000 $7,679 $3,335 0.5% $57,008 $277,284 $334,293 5.3 : 1 Village 2 8 2,624,000 14,093 6,120 1.0 104,625 309,172 413,797 6.3 : 1 Village 3 11 3,685,000 21,386 9,287 1.5 158,764 474,047 632,811 5.8 : 1 Subtotal - Final Map Property 25 $8,091,000 $43,157 $18,742 3.0% $320,398 $1,060,504 $1,380,901 5.9 : 1 Subtotal - Lennar Homes of California, LLC 90 $51,544,652 $160,814 $136,399 21.7% $2,331,816 $4,123,815 $6,455,632 8.0 : 1 AG EHC II (LEN) CA 2, L.P. Developed Property
Village 4 6 $2,376,000 $14,702 $14,702 2.3% $251,338 $305,684 $557,022 4.3 : 1 Final Map Property
Village 3 38 12,730,000 73,877 32,082 5.1 548,459 1,589,199 2,137,658 6.0 : 1 Village 4 70 23,940,000 171,522 74,486 11.9 1,273,375 3,512,343 4,785,718 5.0 : 1 Subtotal - Final Map Property 108 $36,670,000 $245,400 $106,567 17.0% $1,821,834 $5,101,542 $6,923,376 5.3 : 1 Subtotal - AG EHC II (LEN) CA 2, L.P. 114 $39,046,000 $260,102 $121,269 19.3% $2,073,172 $5,407,226 $7,480,398 5.2 : 1 AG EHC II (LEN) CA 4B, L.P. Final Map Property
Village 1 77 $22,869,000 $98,546 $42,795 6.8% $731,607 $3,088,403 $3,820,010 6.0 : 1 Village 2 56 18,368,000 98,650 42,840 6.8 732,375 2,389,129 3,121,504 5.9 : 1 Village 3 29 9,715,000 56,380 24,484 3.9 418,561 1,259,991 1,678,551 5.8 : 1 Subtotal - AG EHC II (LEN) CA 4B, L.P. 162 $50,952,000 $253,576 $110,119 17.6% $1,882,542 $6,737,522 $8,620,065 5.9 : 1 Total 503 $272,154,289 $934,060 $627,355 100.0% $10,725,000 $22,806,383 $33,531,383 8.1 : 1 (Footnotes on Following Page)
Item 8.1
Mountain House Page 1173 of 1946 A-1-2
*Preliminary, subject to change.
(1) The ownership status is based on the Appraisal Report and as of the July 18, 2026 date of value. (2) The development status is as of the July 18, 2026 date of value and assumes no further development. Developed Property includes all parcels for which a building permit has been issued as of that date. Final Map Property includes all parcels within a Final Subdivision Map recorded by that date. (3) Includes assessed values for parcels that were not appraised. For parcels that were appraised, values were allocated to the individual lots based on the expected development and lot status for each, as reported in the Appraisal. The allocated appraised values may not be indicative of the market values of the villages or the individual lots. (4) Based on 208 building permits issued and 295 final mapped lots without permits issued in Tracts 3968, 3969, 3970, 3971, and 3972 prior to July 18, 2026. Assumes no further development. Includes debt service due in 2028 on the Series 2025 Special Tax Bonds, Series 2026 Special Tax Bonds, and estimated administrative expenses in the amount of $44,737. (5) Includes the $5,800,000 outstanding principal amount of the Series 2025 Special Tax Bonds and the $4,925,000 par amount of the Series 2026 Special Tax Bonds. Allocated based on the projected FY 2027-28 Facilities Special Tax Levy.
(6) Includes the outstanding overlapping general obligation bonds of the San Joaquin Delta Community College District and Lammersville Joint Unified School District, as stated in the overlapping debt report prepared by California Municipal Statistics, Inc. The overlapping debt report is based on the parcels and assessed values as of FY 2025-26. Also includes the currently outstanding overlapping CFD debt of Lammersville Joint Unified School District CFD No. 2024-1, allocated based on the projected special tax levy for that CFD as of July 18, 2026. The amount of overlapping CFD debt is subject to change as the School District issues more debt.

Sources: Integra Realty Resources, Inc.; Piper Sandler & Co.; California Municipal Statistics, Inc.; Goodwin Consulting Group, Inc.

Item 8.1
Mountain House Page 1174 of 1946 A-1-3
Summary of Value-to-Lien Ratios. The following table shows the stratification of value-to-lien ratios among parcels in Improvement Area No. 8.

Improvement Area No. 8 of
Community Facilities District No. 2024-1
(Public Facilities and Services)
Summary of Value-to-Lien Ratios
Value-toLien RangeNo. of
Units
Combined
Value(1)
Projected FY
2027-28
Facilities
Special Tax
Levy (2)*
Percent of
Projected
Facilities
Special Tax
Levy*
Allocated
Bonds(3)*
Overlapping
Debt (4)* Total Debt*
Average
Combined
Value-toLien*
15:1 to 20:1 2 $2,860,467 $4,901 0.8% $83,779 $105,727 $189,506 15.1 : 1 10:1 to 15:1 157 145,342,099 288,629 46.0 4,934,287 7,347,954 12,282,241 11.8 : 1 5:1 to 10:1 300 108,252,723 $269,057 42.9% 4,599,693 13,107,630 17,707,323 6.1 : 1 3:1 to 5:1 44 15,699,000 $64,768 10.3% 1,107,241 2,245,072 3,352,313 4.7 : 1 Total 503 $272,154,289 $627,355 100.0% $10,725,000 $22,806,383 $33,531,383 8.1 : 1 *Preliminary, subject to change.
(1) Includes assessed values for parcels that were not appraised. For parcels that were appraised, values were allocated to the individual lots based on the expected development and lot status for each, as reported in the Appraisal. The allocated appraised values may not be indicative of the market values of the villages or the individual lots. (2) Based on 208 building permits issued and 295 final mapped lots without permits issued in Tracts 3968, 3969, 3970, 3971, and 3972 prior to July 18, 2026. Assumes no further development. Includes debt service due in 2028 on the Series 2025 Special Tax Bonds, Series 2026 Special Tax Bonds, and estimated administrative expenses in the amount of $44,737.
(3) Includes the $5,800,000 outstanding principal amount of the Series 2025 Special Tax Bonds and the $4,925,000 par amount of the Series 2026 Special Tax Bonds. Allocated based on the projected FY 2027-28 Facilities Special Tax Levy. (4) Includes the outstanding overlapping general obligation bonds of the San Joaquin Delta Community College District and Lammersville Joint Unified School District, as stated in the overlapping debt report prepared by California Municipal Statistics, Inc. The overlapping debt report is based on the parcels and assessed values as of FY 2025-26. Also includes the currently outstanding overlapping CFD debt of Lammersville Joint Unified School District CFD No. 2024-1, allocated based on the projected special tax levy for that CFD as of July 18, 2026. The amount of overlapping CFD debt is subject to change as the School District issues more debt.

Sources: Integra Realty Resources, Inc.; Piper Sandler & Co.; California Municipal Statistics, Inc.; Goodwin Consulting Group, Inc.

Item 8.1
Mountain House Page 1175 of 1946 A-1-0
Illustrative Tax Bill. The following table shows the estimated tax bill for Village 1, Village 2, Village 3, and Village 4 within Improvement Area No. 8.

Improvement Area No. 8 of
Community Facilities District No. 2024-1
(Public Facilities and Services)
Illustrative Tax Bill
Village 1 Village 2 Village 3 Village 4
Net Taxable Value Amount Amount Amount Amount
Estimated Market Values (1) $815,000 $890,000 $900,000 $1,025,000 Less: Homeowner’s Exemption ($7,000) ($7,000) ($7,000) ($7,000) Net Taxable Value $808,000 $883,000 $893,000 $1,018,000 Ad Valorem Property Taxes (2) Rate Amount Amount Amount Amount Base Property Tax 1.0000% $8,080 $8,830 $8,930 $10,180
LAMMERSVL USD 2006 MEASURE E BOND 0.0082 $66 $72 $73 $83 LAMMERSVL USD 2016 MEASURE L BOND 0.0285 $230 $252 $255 $290 SJ DELTA COLL 2004 MEASURE L BOND 0.0110 $89 $97 $98 $112 DELTA COLL SFID1 2024 MEASURE K BOND 0.0146 $118 $129 $130 $149 Total Ad Valorem Property Taxes 1.0623% $8,583 $9,380 $9,486 $10,814 Parcel Charges, Assessments, and Special Taxes (2) Amount Amount Amount Amount Mountain House - Parks & Rec (3) $106 $125 $149 $127
Mountain House - Public Safety (3) $609 $723 $860 $737
Mountain House - Public Works (3) $111 $131 $156 $134
Mountain House - Road & Admin (3) $1,199 $1,422 $1,690 $1,439 SJC Mosq & Vctr Contr - Ben Asmt $2 $2 $2 $2
Water Zone 2 $1 $1 $1 $1
S Delta Water Agency $2 $2 $2 $2
Lammersville JUSD CFD 2024-1 (4)(5) $2,017 $2,017 $2,017 $2,608 Mountain House CFD No. 2024-1 (Public Facilities and Services) - Services (5) $546 $546 $546 $546 Mountain House CFD No. 2024-1 (Public Facilities and Services) - Facilities (5) $1,255 $1,727 $1,906 $2,402 Total Parcel Charges, Assessments, and Special Taxes $5,847 $6,695 $7,327 $7,996 Total Taxes $14,430 $16,075 $16,813 $18,810
Total Effective Tax Rate 1.77% 1.81% 1.87% 1.84%
(1) Represents the base home prices listed in the Appraisal Report for the Lugano, Maggiore, Mezzano, and Turano projects for Villages 1, 2, 3, and 4, respectively. (2) Based on fiscal year 2025-26 charges identified on the San Joaquin County-issued property tax bills. Charges subject to change in future years. (3) Not authorized to issue bonds.
(4) Authorized to issue up to $250 million in bonds. Currently, a total of $65,890,000 in bonds is outstanding for this CFD. (5) Equal to the applicable Maximum Special Tax rate in FY 2026-27.

Sources: San Joaquin County Tax Collector's Office; Integra Realty Resources, Inc.; Goodwin Consulting Group, Inc.

Item 8.1
Mountain House Page 1176 of 1946 A-1-1
Overlapping Liens and Priority of Lien. The principal of and interest on the Bonds are payable from the Special Tax authorized to be collected within Improvement Area No. 8, and payment of the Special Tax is secured by a lien on certain real property within Improvement Area No. 8. Such lien is co-equal to and independent of the lien for general taxes and any other liens imposed under the Mello-Roos Act, regardless of when they are imposed on the property in Improvement Area No. 8. The imposition of additional special taxes, assessments and general property taxes will increase the amount of independent and co-equal liens which must be satisfied in foreclosure. The County and certain other public agencies are authorized by the Mello-Roos Act to form other community facilities districts and, under other provisions of State law, to form special assessment districts, either or both of which could include all or a portion of the land within Improvement Area No. 8.

Set forth below is an overlapping debt table showing the existing direct and overlapping bonded debt payable with respect to property within Improvement Area No. 8. This table has been prepared by California Municipal Statistics Inc. as of the date indicated, and is included for general information purposes only. The Authority has not reviewed the data for completeness or accuracy and makes no representations in connection therewith.

Improvement Area No. 8 of
Community Facilities District No. 2024-1
(Public Facilities and Services)
Summary of Overlapping Debt
Description
%
Applicable Amount
2025-26 Local Secured Assessed Valuation $86,221,465
Direct and Overlapping Tax and Assessment Debt (1)
San Joaquin Delta Community College District 0.064% $69,413 San Joaquin Delta Community College District SFID No. 1 0.068% $104,888 Lammersville Joint Unified School District 0.884% $480,855 Lammersville Joint Unified School District Community Facilities District No. 2024-1 (3) 33.618% $22,151,226 IA No. 8 of Mountain House Community Facilities District No. 2024-1 100.000% $5,800,000 Total Direct and Overlapping Tax and Assessment Debt $28,606,383 Overlapping General Fund Debt (2)
San Joaquin County Certificates of Participation 0.070% $25,503 Lammersville Joint Unified School District General Fund Obligations 0.884% $123,130 Mountain House Community Services District General Fund Obligations 1.380% $457,603 Total Overlapping General Fund Debt $606,237
Combined Total Debt $29,212,620
Ratios to 2025-26 Assessed Valuation
Direct Debt 32.418%
Total Direct and Overlapping Tax and Assessment Debt 33.178% Combined Total Debt 33.881%
_________________________
(1) Excludes the Bonds to be sold.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and non-bonded capital lease obligations. (3) Allocated by projected fiscal year 2027-28 levy.

Source: California Municipal Statistics, Inc., as compiled by Goodwin Consulting Group, Inc.

Item 8.1
Mountain House                                               Page 1177 of 1946 A-2-1
APPENDIX A-2
IMPROVEMENT AREA NO. 8 APPRAISAL
Item 8.1
Mountain House                                               Page 1178 of 1946 A-3-1
APPENDIX A-3
IMPROVEMENT AREA NO. 8 RATE AND METHOD OF APPORTIONMENT Item 8.1
Mountain House                                               Page 1179 of 1946 B-1-1
APPENDIX B-1
IMPROVEMENT AREA NO. 13 AND SPECIAL TAX BONDS
The City is issuing special tax bonds (the “Bonds”) for its City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) (the “District”) Improvement Area No. 13 (“Improvement Area No. 13”), located in San Joaquin County, California in the principal amount shown in the forepart of this Official Statement.

Use of Proceeds of the Bonds. The Bonds are being issued to finance impact fees payable by the developer, Lennar Homes of California, LLC, a California limited liability company (“Lennar Homes”) or its land bank, DRP Solaris CA 2, LLC, a Delaware limited liability company (herein, the “DRP Solaris Land Bank”), to be used for public improvements and/or public improvements being constructed, as a condition of development in Improvement Area No. 13 of the District. Proceeds will also be used to pay for costs of issuance of the Bonds and the Authority Bonds and to fund capitalized interest and the Reserve Fund for the Bonds.

Improvement Area No. 13 Location. Improvement Area No. 13 is located on west of Mountain House Parkway, south of Byron Road, within the City of Mountain House, San Joaquin County, California.

Development Within the Improvement Area No. 13. The property within Improvement Area No. 13 consists of 330 residential lots encompassing tracts 4210, 4211 and 4212. Lennar Homes’ development plan is to develop the lots into 330 single-family detached homes in four product lines known as “Alder at Sable Ridge,” “Sutton at Sable Ridge,” “Linden,” and “Mahony,” across three noncontiguous project areas. The lots are the subject of a land bank arrangement whereby Lennar Homes has the option, but not the obligation, to acquire lots pursuant to a takedown schedule. See “– Land Bank Arrangement – Improvement Area No. 13” below.

As of July 18, 2026, all 330 residential lots in Improvement Area No. 13 were owned by the DRP Solaris Land Bank. Lennar Homes anticipates acquiring all 330 lots in a single takedown by September 30, 2026 (and may be extended), commencing construction of the models and first phase of production in [August] 2026, opening the models in [October] 2026, and closing escrow on the first homes in early 2027. Buildout or final home closings within Improvement Area No. 13 is anticipated by the end of 2030.

Additional details as of July 18, 2026 are set forth in the table below, which assumes Lennar Homes acquires all 330 lots from the Land Bank pursuant to the takedown schedule.

Item 8.1
Mountain House Page 1180 of 1946 B-1-2
Lennar Homes – Status of Development
“Alder at Sable Ridge, Sutton at Sable Ridge, Linden & Mahony” (Improvement Area No. 13)
As of July 18, 2026
Product Line
Approx.

Square
Footage
Range
Total
Units
Planned(1)
Completed
Homes
owned by
Lennar
Homes
Under
Construction
Finished
Lots(2)
Homes
Sold and
Closed
Estimated
Initial Base Price
Range(3)
Alder at Sable Ridge 2,705 – 3,331 53 0 0 53 0 $1,035,000 - $1,185,000 Sutton at Sable Ridge 2,390 – 2,769 53 0 0 53 0 $965,000 - $1,065,000 Linden 1,605 – 2,074 143 0 0 143 0 $795,000 - $920,000
Mahony 81 0 0 81 0 $965,000 - $1,275,000
TOTALS: 330 0 0 330 0
_____________
(1) As of July 18, 2026, all 330 lots were owned by the DRP Solaris Land Bank and scheduled to be acquired by Lennar Homes in a single takedown by September 30, 2026 (and may be extended) pursuant to the DRP Solaris Option Agreement. Lennar Homes has requested an extension of the takedown under the DRP Solaris Option Agreement to _____________, 2026. There is no guarantee that Lennar Homes will acquire the lots owned by the DRP Solaris Land Bank as planned or that the requested takedown extension will granted. (2) Represents lots without any vertical home construction, six with building permits issued as of July 18, 2026. (3) Estimated initial base sales prices are projected as of July 18, 2026. Actual base sales prices may be lower than estimated. Base sales prices exclude lot premiums, options and extras and any incentives or price reductions.

Source: Lennar Homes
As of July 18, 2026, all required backbone and in-tract infrastructure was in progress for the development and sale of all planned 330 single-family homes within Improvement Area No.

13. Remaining backbone infrastructure and in-tract infrastructure needed for the development of Improvement Area No. 13 consists of installation of the dry utilities, wet utilities, including storm water, paving of all in-tract streets, curb, gutters and sidewalks, street landscaping, lighting, striping, and storm water protection measures. Lennar Homes expects to incur approximately $[9.7] million in remaining costs to complete the remaining backbone infrastructure and in-tract infrastructure for Improvement Area No. 13.

Lennar Homes’ development expectations described above are based on Lennar Homes’ current plans, which may change due to changes in economic and market conditions or other factors. No assurance can be given that land acquisition, home construction and sales will be carried out on the schedule and according to the plans described herein, or that the land acquisition, home construction and sale plans or base prices set forth above will not change after the date of this Official Statement. Lennar Homes reserves the right to change its development at any time without notice. Additionally, homes under contract to be sold may not result in closed escrows as sales contracts are subject to cancellation by the homebuyer. See “SPECIAL RISK FACTORS” in the forepart of this Official Statement for a discussion of risk factors.”
Land Bank Arrangement – Improvement Area No. 13. Lennar Homes entered into a Purchase and Sale Agreement with Sunchaser Diversified One, LLC and Trimark Communities, LLC, dated May 29, 2024 (as amended, the “Purchase Agreement”) for the purchase by Lennar Homes of the 330 residential lots in Improvement Area No. 13, comprising Tract Nos. 4210, 4211 and 4212. Prior to the applicable close of escrow under the Purchase Agreement, Lennar Homes assigned its rights thereunder to the DRP Solaris Land Bank pursuant to that certain Nomination Agreement between the DRP SOlaris Land Bank, as nominee, and Lennar Homes, dated December 12, 2024 (the “PSA Assignment”).

Item 8.1
Mountain House Page 1181 of 1946 B-1-3
The PSA Assignment resulted in DRP Solaris Land Bank acquiring the land subject to the Purchase Agreement, in order to set up a land banking structure. The DRP Solaris Land Bank is not an affiliate of Lennar Homes.

To facilitate the land banking structure, Lennar Homes and the DRP Solaris Land Bank entered into an Option Agreement, dated December 12, 2024 (as amended, the “DRP Solaris Option Agreement”) whereby Lennar Homes has the option, but not the obligation, to purchase the 330 residential lots within Tract Nos. 4210, 4211 and 4212 from the DRP Solaris Land Bank in a single takedown by September 30, 2026 (and may be extended). No assurance can be given that Lennar Homes will acquire the 330 lots subject to the DRP Solaris Land Bank as planned.

In addition to the DRP Solaris Option Agreement, Lennar Communities, Inc. (the “Contractor”), a Lennar Homes affiliate, and the DRP Solaris Land Bank entered into a Construction Agreement (the “DRP Solaris Construction Agreement”) pursuant to which Contractor has, among other things, the right to construct specified improvements and perform specified work on the property subject to the DRP Solaris Option Agreement.

During the term of the DRP Solaris Option Agreement, Lennar Homes is obligated to pay all taxes on the subject land, including the Special Taxes. Upon termination or expiration thereof, the DRP Solaris Land Bank would be solely responsible for the payment of taxes, including the Special Taxes, for any land that they own.

The DRP Solaris Land Bank is serving as a land bank for Lennar Homes and is not a homebuilder. In the event Lennar Homes does not acquire all lots owned by the DRP Solaris Land Bank, or the right to purchase such lots expires or is terminated, the DRP Solaris Land Bank would attempt to market and sell such lots to another homebuilder.

The DRP Solaris Land Bank. According to the DRP Solaris Land Bank, the DRP Solaris Land Bank is the Domain Land Bank is affiliated with DW Partners, a New York–based investment firm founded in 2009. Since Domain’s founding in 2015, the company has invested in 680 communities nationwide, representing approximately $15 billion in total project costs.

With respect to Lennar, Domain has participated in land banking arrangements on more than 250 communities across the United States. The DRP Solaris Land Bank is not an affiliate of Lennar Homes.

Flood Zone. The lots in Improvement Area No. 13 are not in a Special Flood Hazard Area and are located in FEMA-designated Flood Zone X (outside of the 500-year floodplain) per Community Panel No. 06001C0220H dated May 26, 2026.

Item 8.1
Mountain House Page 1182 of 1946 B-1-4
The Developer. Lennar Homes is based in Irvine, California and has been in the business of developing residential real estate communities in California since 1996. Lennar Homes is wholly-owned by U.S. Home, LLC, a Delaware limited liability company (“U.S.

The SEC maintains a website that contains reports, proxy and other information statements and other information regarding registrants that file electronically with the SEC, including Lennar Corporation. The address of such website is www.sec.gov. All documents filed by Lennar Corporation pursuant to the requirements of the Exchange Act after the date of this Official Statement will be available for inspection in such manner as the SEC prescribes.

Financing Plan. To date, Lennar Homes has financed its various site development and homebuilding costs related to its development within Improvement Area No. 13 through internally generated funds (which may include funding from its parent company and home sales proceeds). However, home sales revenues from Lennar Homes’ activities in Improvement Area No. 13 are not segregated and set aside for completing its development activities in Improvement Area No. 13.

Although Lennar Homes expects to have sufficient funds available to complete its development in Improvement Area No. 13 as described in this Official Statement, no assurance Item 8.1
Mountain House Page 1183 of 1946 B-1-5
can be given that amounts necessary to fund the remaining development costs will be available to Lennar Homes source when needed. Neither Lennar Homes, nor other entity or person is under any legal obligation of any kind to expend funds for the development of and construction of homes on Lennar Homes’ property in Improvement Area No. 13. Any contributions by Lennar Homes or any other entity or person to fund the costs of such development are entire voluntary.

Lennar Homes has no legal obligation to Bond Owners to make any such funds available for construction or development, or the payment of ad valorem property taxes or the Special Taxes.

If and to the extent the aforementioned sources of funds are inadequate to pay the costs to complete the planned development by Lennar Homes within Improvement Area No. 13 and other financing is not put into place, there could be a shortfall in the funds required to complete the remaining planned development by Lennar homes or to pay ad valorem property taxes or Special Taxes related to Lennar Homes’ property in Improvement Area No. 13 and the remaining portions of such development may not be completed. Many factors beyond Lennar Homes’ control, or a decision by Lennar Homes to alter its current plans, may cause the actual sources and uses to differ from the projections.

Rate and Method. The Special Tax will be levied each year on parcels within Improvement Area No. 13 in an amount at least sufficient to pay debt service on outstanding Bonds and Administrative Expenses for Improvement Area No. 13, and the Bonds have been sized so that the Maximum Special Taxes that can be levied annually net of Priority Administrative Expenses will equal at least 110% of debt service on such Bonds. The Special Tax escalates at 2% per year. See APPENDIX B-3 for a complete copy of the Rate and Method.

The Special Tax rates for Fiscal Year 2027-28 are set forth in the following table:

Improvement Area No. 13 of
Community Facilities District No. 2024-1
(Public Facilities and Services)
Base Facilities Special Tax Rates – Fiscal Year 2027-28 Developed and Final Map Property
FY 2027-28 Base Facilities
Land Use Category Village Special Tax (1)(2)
Single Family Property Village 1 $2,689.44 per Residential Unit Single Family Property Village 2 $3,357.38 per Residential Unit Single Family Property Village 3 $2,554.18 per Residential Unit Single Family Property Village 4 $3,009.88 per Residential Unit Single Family Property Village 5 $1,919.54 per Residential Unit Single Family Property Village 6 $2,319.06 per Residential Unit Single Family Property Village 7 $3,235.64 per Residential Unit Single Family Property Village 8 $4,434.18 per Residential Unit Other Property N/A $30,269.40 per Acre
Undeveloped Property
FY 2027-28 Base Facilities
Special Tax Category Village Special Tax (1)(2)
Undeveloped Property N/A $30,269.40 per Acre
(1) On July 1 each fiscal year, the Maximum Facilities Special Taxes shall be increased by two percent of the amount in effect in the previous fiscal year.
(2) Represents the Maximum Facilities Special Tax rates based on currently-expected land uses in the Improvement Area. Subject to change pursuant to Section D of the RMA.

Source: Goodwin Consulting Group, Inc.

Item 8.1
Mountain House Page 1184 of 1946 B-1-6
Projected Special Tax Levy by Village. The following table shows the projected special tax levy among parcels in Improvement Area No. 13 for Fiscal Year 2027-28.

Improvement Area No. 13 of
Community Facilities District No. 2024-1
(Public Facilities and Services)
Projected Fiscal Year 2027-28 Facilities Special Tax Levy (1) Projected
Development Status Village
Projected FY 2027-28
Maximum Facilities
Special Tax
Projected FY 2027-28
Actual Facilities
Special Tax (2)*
Developed Property Village 1 $5,379 $5,379
Developed Property Village 2 3,357 3,357
Developed Property Village 3 5,108 5,108
Developed Property Village 4 3,010 3,010
Developed Property Village 5 0 0
Developed Property Village 6 0 0
Developed Property Village 7 0 0
Developed Property Village 8 0 0
Final Map Property Village 1 91,441 29,736
Final Map Property Village 2 53,718 17,469
Final Map Property Village 3 89,396 29,071
Final Map Property Village 4 45,148 14,682
Final Map Property Village 5 122,851 39,950
Final Map Property Village 6 183,206 59,577
Final Map Property Village 7 64,713 21,044
Final Map Property Village 8 270,485 87,960
$937,812 $316,343
*Preliminary, subject to change.
(1) As of July 18, 2026, the date of value, final maps had been recorded for all villages and 6 building permits had been issued for construction of new homes. Assumes no additional development. (2) Includes debt service due in 2028 on the Series 2026 Special Tax Bonds and estimated administrative expenses in the amount of $33,000. The Priority Administrative Expense for fiscal year 2027-28 is $33,000 and escalates by two percent per year.

Source: Goodwin Consulting Group, Inc.

Special Tax Levy; Delinquencies. Fiscal Year 2027-28 will be the first year the special tax is levied in Improvement Area No. 13. Accordingly, no delinquency information is available.

Valuation of Taxable Property. Property in Improvement Area No. 13 subject to the Special Tax is security for the Bonds. To ascertain the market value of taxable property within Improvement Area No. 13 the City commissioned an appraisal of all 330 taxable lots within Improvement Area No. 13. As of the July 18, 2026 date of value, the estimated market value concluded by the appraiser was $107,324,000, which is less than the total assessed value shown on the Fiscal Year 2026-27 County property tax roll for such property.

In accordance with Proposition 13, the assessed valuation of the taxable property within Improvement Area No. 13 is based on the most recent value at which the property transferred.

On December 9, 2024, Sunchaser Real Estate One, LLC sold the taxable property within Improvement Area No. 13 to the DRP Solaris Land Bank for $122,309,000. This is the most recent transfer and, accordingly, provides the basis for the current assessed valuation.

Item 8.1
Mountain House Page 1185 of 1946 B-1-7
History of Assessed Valuation. The assessed valuation for Fiscal Years 2025-26 and 2026-27 are set forth in the following table:

Fiscal
Year
Land
Assessed
Value
Improvement
Assessed
Value
Total
Assessed
Value
Number of
Permits
Issued (1)(2)
2025-26 $10,532,832 $0 $10,532,832 0
2026-27 124,654,200 0 124,654,200 0
(1) Represents the number of parcels for which a building permit for new construction was issued prior to June 30 of the prior fiscal year. As of June 30, 2026, no building permits had been issued. (2) As of July 18, 2026, the date of value, 6 building permits had been issued.

Sources: San Joaquin County Assessor’s Office; Goodwin Consulting Group, Inc.

The Appraisal. Property in Improvement Area No. 13 subject to the Special Tax is security only for the Bonds. The appraisal report, prepared by Integra Realty Resources, Sacramento, California indicates a value estimate of the land in Improvement Area No. 13 of $107,324,000 as of the July 18, 2026 date of value, subject to the conditions and qualifications set forth in the Appraisal, which include the value added from proceeds of the Bonds and the effect of the lien of the Special Taxes for Improvement Area No. 13. The Appraisal includes detailed information about the land within Improvement Area No. 13 including property characteristics, zoning, flood zone and seismic zone designations, utility providers, as well as a map, photos and entitlements in place and improvements as of the date of the valuation. The complete Appraisal is included as an appendix to this Official Statement and should be read in its entirety.

As noted above, the estimated market value concluded by the appraiser was $107,324,000, which is less than the total assessed value shown on the Fiscal Year 2026-27 County property tax roll for such property. The methodology utilized by the appraiser to estimate a current market value is very different than the methodology employed by the County assessor to conclude the assessed valuation of taxable property under Proposition 13 and applicable implementing laws of the State of California. See APPENDIX B-2 for additional details on the appraiser’s methodology.

Value-to-Lien Ratios. The Appraisal sets forth the value of all taxable property within Improvement Area No. 13 to be $107,324,000, subject to the limiting conditions stated therein.

The principal amount of the direct and overlapping debt is $16,526,109*. Consequently, the estimated value of property in Improvement Area No. 13 subject to the Special Tax lien is approximately 6.5* times the principal amount of the Bonds and overlapping land-secured debt.

Other public agencies could impose additional taxes or assessment liens on the land within Improvement Area No. 13 to finance additional regional or local public improvements or services, which would result in a lower value-to-lien ratio.

Item 8.1
Mountain House Page 1186 of 1946 B-1-0
Projected Value-to-Lien Ratio by Ownership and Development Status. The following table shows the value-to-lien ratios in Improvement Area No. 13 for Fiscal Year 2027-28, based on development status. Value-to-lien ratios on individual parcels may vary considerably from any average used in the following table.

Improvement Area No. 13 of
Community Facilities District No. 2024-1
(Public Facilities and Services)
Projected Fiscal Year 2027-28 Special Tax Levy and Value-to-Lien Ratios Ownership(1) Development Status(2)
No. of
Units
Appraised
Value(3)
Projected
FY 2027-28
Maximum
Facilities
Special Tax
Projected
FY 2027-28
Facilities
Special Tax
Levy (4)*
Percent of
Projected
FY 2027-28
Special Tax
Levy*
Series 2026
Bonds(5)*
Overlapping
Debt(6)* Total Debt*
Average
Appraised
Value-toLien*
DRP Solaris CA 2, LLC Developed Property
Village 1 2 $730,000 $5,379 $5,379 1.7% $89,267 $98,900 $188,168 3.9 : 1 Village 2 1 365,000 3,357 3,357 1.1 55,719 49,450 105,169 3.5 : 1 Village 3 2 724,000 5,108 5,108 1.6 84,778 76,643 161,421 4.5 : 1 Village 4 1 362,000 3,010 3,010 1.0 49,952 38,321 88,273 4.1 : 1 Subtotal - Developed Property 6 $2,181,000 $16,855 $16,855 5.3% $279,716 $263,315 $543,031 4.0 : 1 Final Map Property
Village 1 34 $10,540,000 $91,441 $29,736 9.4% $493,491 $1,414,130 $1,907,622 5.5 : 1 Village 2 16 4,960,000 53,718 17,469 5.5 289,911 635,400 925,311 5.4 : 1 Village 3 35 11,270,000 89,396 29,071 9.2 482,460 1,363,508 1,845,967 6.1 : 1 Village 4 15 4,830,000 45,148 14,682 4.6 243,661 597,079 840,740 5.7 : 1 Village 5 64 20,480,000 122,851 39,950 12.6 663,008 2,484,845 3,147,852 6.5 : 1 Village 6 79 25,280,000 183,206 59,577 18.8 988,735 3,092,227 4,080,962 6.2 : 1 Village 7 20 6,860,000 64,713 21,044 6.7 349,251 349,040 698,291 9.8 : 1 Village 8 61 20,923,000 270,485 87,960 27.8 1,459,768 1,076,564 2,536,333 8.2 : 1 Subtotal - Final Map Property 324 $105,143,000 $920,958 $299,489 94.7% $4,970,284 $11,012,794 $15,983,078 6.6 : 1 Total 330 $107,324,000 $937,812 $316,343 100.0% $5,250,000 $11,276,109 $16,526,109 6.5 : 1 *Preliminary, subject to change.
(1) The ownership status is based on the Appraisal Report and as of the July 18, 2026 date of value. (2) The development status is as of the July 18, 2026 date of value and assumes no further development. Developed Property includes all parcels for which a building permit has been issued as of that date. Final Map Property includes all parcels within a Final Subdivision Map recorded by that date. (3) Appraised values were allocated to the individual lots based on the expected development and lot status for each, as reported in the Appraisal. The allocated appraised values may not be indicative of the market values of the villages or the individual lots. (4) Based on 6 building permits issued and 324 final mapped lots without permits issued in Tracts 4210, 4211, and 4212 prior to July 18, 2026. Assumes no further development. Includes debt service due in 2028 on the Series 2026 Special Tax Bonds and estimated administrative expenses in the amount of $33,000. (5) Includes the $5,250,000 par amount of the Series 2026 Special Tax Bonds. Allocated based on the projected FY 2027-28 Facilities Special Tax Levy. (6) Includes the outstanding overlapping general obligation bonds of the San Joaquin Delta Community College District and Lammersville Joint Unified School District, as stated in the overlapping debt report prepared by California Municipal Statistics, Inc. The overlapping debt report is based on the parcels and assessed values as of FY 2025-26. Also includes the currently outstanding overlapping CFD debt of Improvement Area No. 1 of the Lammersville Joint Unified School District CFD No. 2007-1 and Lammersville Joint Unified School District CFD No. 2024-1, allocated based on the projected special tax levies for those CFDs as of July 18, 2026. The amount of overlapping CFD debt is subject to change as the School District issues more debt.

Sources: Integra Realty Resources, Inc.; Piper Sandler & Co.; California Municipal Statistics, Inc.; Goodwin Consulting Group, Inc.

Item 8.1
Mountain House Page 1187 of 1946 B-1-10
Summary of Value-to-Lien Ratios. The following table shows the stratification of value-to-lien ratios among parcels in Improvement Area No. 13.

Improvement Area No. 13 of
Community Facilities District No. 2024-1
(Public Facilities and Services)
Summary of Value-to-Lien Ratios
Value-toLien RangeNo. of
Units
Appraised
Value(1)
Projected
FY 2027-28 Facilities
Special Tax Levy (2)*
Percent of
Projected
Facilities
Special Tax
Levy*
Series 2026
Bonds(3)*
Overlapping
Debt (4)* Total Debt*
Average
Appraised
Value-to-Lien*
10:1 to 15:1 6 $2,058,000 $6,313 2.0% $104,775 $82,815 $187,591 11.0 : 1 5:1 to 10:1 304 98,721,000 280,288 88.6 4,651,638 10,237,761 14,889,399 6.6 : 1 3:1 to 5:1 20 6,545,000 29,742 9.4 493,587 955,532 1,449,119 4.5 : 1 Total 330 $107,324,000 $316,343 100.0% $5,250,000 $11,276,109 $16,526,109 6.5 : 1 *Preliminary, subject to change.
(1) Appraised values were allocated to the individual lots based on the expected development and lot status for each, as reported in the Appraisal. The allocated appraised values may not be indicative of the market values of the villages or the individual lots. (2) Based on 6 building permits issued and 324 final mapped lots without permits issued in Tracts 4210, 4211, and 4212 prior to July 18, 2026. Assumes no further development.

Includes debt service due in 2028 on the Series 2026 Special Tax Bonds and estimated administrative expenses in the amount of $33,000. (3) Includes the $5,250,000 par amount of the Series 2026 Special Tax Bonds. Allocated based on the projected FY 2027-28 Facilities Special Tax Levy. (4) Includes the outstanding overlapping general obligation bonds of the San Joaquin Delta Community College District and Lammersville Joint Unified School District, as stated in the overlapping debt report prepared by California Municipal Statistics, Inc. The overlapping debt report is based on the parcels and assessed values as of FY 2025-26. Also includes the currently outstanding overlapping CFD debt of Improvement Area No. 1 of the Lammersville Joint Unified School District CFD No. 2007-1 and Lammersville Joint Unified School District CFD No. 2024-1, allocated based on the projected special tax levies for those CFDs as of July 18, 2026. The amount of overlapping CFD debt is subject to change as the School District issues more debt.

Sources: Integra Realty Resources, Inc.; Piper Sandler & Co.; California Municipal Statistics, Inc.; Goodwin Consulting Group, Inc.

Item 8.1
Mountain House Page 1188 of 1946 B-1-11
Illustrative Tax Bill. The following table shows the estimated tax bill for Village 3 and Village 8 within Improvement Area No. 13.

Improvement Area No. 13 of
Community Facilities District No. 2024-1
(Public Facilities and Services)
Illustrative Tax Bill
Village 3 Village 8
Net Taxable Value Amount Amount
Estimated Market Values (1) $1,000,000 $1,150,000
Less: Homeowner’s Exemption ($7,000) ($7,000)
Net Taxable Value $993,000 $1,143,000
Ad Valorem Property Taxes (2) Rate Amount Amount
Base Property Tax 1.0000% $9,930 $11,430
LAMMERSVL USD 2006 MEASURE E BOND 0.0082 $81 $94
LAMMERSVL USD 2016 MEASURE L BOND 0.0285 $283 $326
SJ DELTA COLL 2004 MEASURE L BOND 0.0110 $109 $126
DELTA COLL SFID1 2024 MEASURE K BOND 0.0146 $145 $167
Total Ad Valorem Property Taxes 1.0623% $10,549 $12,142 Parcel Charges, Assessments, and Special Taxes (2) Amount Amount Mountain House - Parks & Rec (3) $100 $101
Mountain House - Public Safety (3) $572 $576
Mountain House - Public Works (3) $104 $106
Mountain House - Road & Admin (3) $1,126 $1,138
SJC Mosq & Vctr Contr - Ben Asmt $10 $10
SJC Mosquito Abate $1 $1
Water Zone 2 $2 $2
CSA No. 53 - Haz Waste $4 $4
IA 1 Lammersville USD No. CFD 2007-1 (4)(6) $0 $2,123
Lammersville JUSD CFD No. 2024-1 (5)(6) $2,608 $0
Mountain House CFD No. 2024-1 (Public Facilities and Services) - Services (6) $546 $546 Mountain House CFD No. 2024-1 (Public Facilities and Services) - Facilities (6) $2,504 $4,347 Total Parcel Charges, Assessments, and Special Taxes $7,577 $8,955 Total Taxes $18,125 $21,097
Total Effective Tax Rate 1.81% 1.83%
(1) Represents the base home prices listed for medium density lots and low density lots per the Appraisal Report. Assumes a medium density lot for Village 3 and a low density lot for Village 8.
(2) Based on fiscal year 2025-26 charges identified on the San Joaquin County-issued property tax bills. Charges subject to change in future years. (3) Not authorized to issue bonds.
(4) Authorized to issue up to $200 million in bonds. Currently, a total of $20,720,000 in bonds is outstanding for this CFD. (5) Authorized to issue up to $250 million in bonds. Currently, a total of $65,890,000 in bonds is outstanding for this CFD. (6) Equal to the applicable Maximum Special Tax rate in FY 2026-27.

Sources: San Joaquin County Tax Collector's Office; Integra Realty Resources, Inc.; Goodwin Consulting Group, Inc.

Item 8.1
Mountain House Page 1189 of 1946 B-1-12
Overlapping Liens and Priority of Lien. The principal of and interest on the Bonds are payable from the Special Tax authorized to be collected within Improvement Area No. 13, and payment of the Special Tax is secured by a lien on certain real property within Improvement Area No. 13. Such lien is co-equal to and independent of the lien for general taxes and any other liens imposed under the Mello-Roos Act, regardless of when they are imposed on the property in Improvement Area No. 13. The imposition of additional special taxes, assessments and general property taxes will increase the amount of independent and co-equal liens which must be satisfied in foreclosure. The County and certain other public agencies are authorized by the Mello-Roos Act to form other community facilities districts and, under other provisions of State law, to form special assessment districts, either or both of which could include all or a portion of the land within Improvement Area No. 13.

Set forth below is an overlapping debt table showing the existing direct and overlapping bonded debt payable with respect to property within Improvement Area No. 13. This table has been prepared by California Municipal Statistics Inc. as of the date indicated, and is included for general information purposes only. The Authority has not reviewed the data for completeness or accuracy and makes no representations in connection therewith.

Improvement Area No. 13 of
Community Facilities District No. 2024-1
(Public Facilities and Services)
Summary of Overlapping Debt
Description
%
Applicable Amount
2025-26 Local Secured Assessed Valuation $10,532,832
Direct and Overlapping Tax and Assessment Debt (1)
San Joaquin Delta Community College District 0.008% $8,479 San Joaquin Delta Community College District SFID No. 1 0.008% $12,813 Lammersville Joint Unified School District 0.108% $58,741 IA No. 1 of the Lammersville School District Community Facilities District No. 2007-1 (3) 6.841% $1,417,424 Lammersville Joint Unified School District Community Facilities District No. 2024-1 (3) 14.841% $9,778,651 IA No. 8 of Mountain House Community Facilities District No. 2024-1 100.000% $0 Total Direct and Overlapping Tax and Assessment Debt $11,276,109 Overlapping General Fund Debt (2)
San Joaquin County Certificates of Participation 0.008% $3,116 Lammersville Joint Unified School District General Fund Obligations 0.108% $15,042 Mountain House Community Services District General Fund Obligations 0.169% $55,901 Total Overlapping General Fund Debt $74,058
Combined Total Debt $11,350,167
Ratios to 2025-26 Assessed Valuation
Direct Debt 106.297%
Total Direct and Overlapping Tax and Assessment Debt 107.057% Combined Total Debt 107.760%
_________________________
(1) Excludes the Bonds to be sold.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and non-bonded capital lease obligations. (3) Allocated by projected fiscal year 2027-28 levy.

Source: California Municipal Statistics, Inc., as compiled by Goodwin Consulting Group, Inc.

Item 8.1
Mountain House                                               Page 1190 of 1946 B-2-1
APPENDIX B-2
IMPROVEMENT AREA NO. 13 APPRAISAL
Item 8.1
Mountain House                                               Page 1191 of 1946 B-3-1
APPENDIX B-3
IMPROVEMENT AREA NO. 13 RATE AND METHOD OF APPORTIONMENT Item 8.1
Mountain House                                               Page 1192 of 1946 C-1

APPENDIX C

GENERAL DEMOGRAPHIC INFORMATION ABOUT THE MOUNTAIN HOUSE AREA The District is located in the City of Mountain House (the “City”), which is located in southwestern San Joaquin County (the “County”), California (the “State”). The following information is included only for the purpose of supplying general information regarding the general area surrounding the Mountain House Community. The 2026B Bonds are not a debt or obligation of the City, County or State, but are a limited obligation of the Authority, secured solely by the Revenues and other amounts pledged under the Indenture and each Local Obligation Fiscal Agent Agreement, all as described in more detail in this Official Statement.

The City was incorporated by vote of its citizens at an election held on March 5, 2024, becoming the 483rd incorporated city admitted to the State of California in July 2024.

The area encompassed by the City is directly north and northwest of the City of Tracy, located on the western edge of the Central Valley in San Joaquin County. The City is 60 miles east of San Francisco and 70 miles south of Sacramento, covering approximately 14.3 square miles.

Population
The population of the Mountain House community was estimated by the Department of Finance at 30,687 as of January 1, 2026. Population figures for cities in the County, the County and the State for the dates indicated over the last five years are shown in the following table.

COUNTY OF SAN JOAQUIN
Population Estimates
Calendar Years 2022 through 2026
Population Estimates
(As of January 1st)
Area 2022 2023 2024 2025 2026
Escalon 7,392 7,307 7,400 7,359 7,304
Lathrop 31,267 34,673 36,971 38,791 40,942
Lodi 67,012 66,910 68,047 68,468 68,513
Manteca 87,174 89,067 92,521 94,951 96,511
Mountain House - - - 29,048 30,687
Ripon 16,037 15,864 16,071 15,996 15,873
Stockton 320,079 317,486 322,799 323,077 322,436
Tracy 94,859 95,328 97,391 98,776 99,705
Balance of County 162,486 161,726 163,698 138,490 138,154 Incorporated 623,820 626,635 641,200 676,466 681,971
County Total 786,306 788,361 804,898 814,956 820,125
Source: California Department of Finance (Estimates are as of January 1).

Item 8.1
Mountain House Page 1193 of 1946 C-2
Employment and Industry
The unemployment rate in San Joaquin County was 6.2 percent in June 2026, up from a revised 5.6 percent in May 2026, and below the year-ago estimate of 6.8 percent. This compares with an unadjusted unemployment rate of 5.2 percent for California and 4.4 percent for the nation during the same period.

The City is included in the Stockton Metropolitan Statistical Area (“MSA”), which includes all of the County. Set forth on the following page is data from calendar years 2021 to 2025 reflecting the County’s industry employment and labor force, including the civilian labor force, employment and unemployment statistics. These figures are county-wide statistics and may not necessarily accurately reflect employment trends in the City.

STOCKTON-LODI MSA
(San Joaquin County)
Annual Average Labor Force and Employment by Industry
Calendar Years 2021 through 2025
(March 2025 Benchmark)
2021 2022 2023 2024 2025
Civilian Labor Force (1) 350,300 357,500 364,200 370,400 378,700 Employment 321,200 339,000 342,400 346,400 353,400
Unemployment 29,100 18,500 21,800 24,000 25,300
Unemployment Rate 8.3% 5.2% 6.0% 6.5% 6.7%
Wage and Salary Employment: (2)
Agriculture 14,200 13,800 14,500 14,200 13,300
Mining and Logging 100 0 0 0 0
Construction 13,900 14,900 14,000 14,600 14,300
Manufacturing 21,300 23,000 23,500 23,400 22,800
Wholesale Trade 10,800 11,600 12,300 12,500 12,500
Retail Trade 26,200 27,000 27,100 26,800 26,300
Transportation, Warehousing and Utilities 43,000 48,100 47,300 47,000 48,100 Information 1,200 1,200 1,100 1,000 900
Financial Activities 8,000 8,200 7,900 7,700 7,800
Professional and Business Services 22,500 24,100 23,100 22,900 23,100 Educational and Health Services 38,000 39,700 42,000 45,000 48,100 Leisure and Hospitality 21,300 24,300 24,500 24,300 24,700 Other Services 7,300 7,900 8,100 8,300 8,300
Federal Government 3,100 3,100 3,000 3,000 3,000
State Government 6,000 5,500 5,100 5,100 5,300
Local Government 32,900 34,000 35,300 37,400 40,700
Total All Industries (3) 269,800 286,200 288,700 293,200 299,200 (1) Labor force data is by place of residence; includes self-employed individuals, unpaid family workers, household domestic workers, and workers on strike.
(2) Industry employment is by place of work; excludes self-employed individuals, unpaid family workers, household domestic workers, and workers on strike.
(3) Totals may not add due to rounding.

Source: State of California Employment Development Department. .

Item 8.1
Mountain House Page 1194 of 1946 C-3
The following table lists the major public and private employers within the County, as of April 2026.

SAN JOAQUIN COUNTY
Major Employers
As of August 2026
Employer Name Location Industry
Amazon Fulfillment Ctr Stockton Mail Order Fulfillment Service Blue Shield of California Lodi Insurance
Dameron Hospital Stockton Hospitals
Foster Care Svc Stockton Foster Care
Leprino Foods Co Tracy Cheese Processors (mfrs)
Lodi Health Home Health Agency Lodi Home Health Service M & R Co Lodi Fruits & Vegetables-Growers & Shippers
Medline Tracy Physicians & Surgeons Equip & Supls-Whls
Morada Produce Stockton Ranches
NA Chaderjian Youth Stockton State Govt-Correctional Institutions O-G Packing & Cold Storage Co Stockton Fruits & Vegetables-Growers & Shippers Prima Frutta Packing Inc Linden Fruit & Produce Packers Safeway Distribution Ctr Tracy Distribution Centers (whls) San Joaquin County CA Pubc Stockton Government Offices-County San Joaquin County Human Svc Stockton Government Offices-County San Joaquin County Sch Stockton School Districts
San Joaquin General Hospital French Camp Hospitals
San Joaquin Sheriff's Office French Camp Government Offices-County Sjgov Stockton Government Offices-County
St Joseph's Regional Health Stockton Health Services
Stockton Police Dept Stockton Police Departments
Stockton Unified Sch Dist Stockton Facilities Management Stockton Unified School Dist Stockton Schools
Walmart Supercenter Stockton Department Stores
Waste Management-Lodi Transfer Lodi Solid Waste Collection Source: State of California Employment Development Department, extracted from The America’s Labor Market Information System (ALMIS) Employer Database, 2026 2nd Edition.

Item 8.1
Mountain House Page 1195 of 1946 C-4
Commercial Activity
Summaries of historic taxable sales within the City and the County during the past five years in which data is available are shown in the following table.

The total taxable sales during calendar year 2025 in the City were reported to be $18,529,412.

CITY OF MOUNTAIN HOUSE
Taxable Retail Sales
Number of Permits and Valuation of Taxable Transactions (Dollars in Thousands)
Retail Stores Total All Outlets
Number
of Permits
Taxable
Transactions
Number
of Permits
Taxable
Transactions
2021 -- -- -- --
2022 -- -- -- --
2023 -- -- -- --
2024 90 $4,033 141 $4,108
2025 152 15,639 238 18,529
Source: State of California, Board of Equalization.

The total taxable sales during calendar year 2025 in the County were reported to be $25,379,956,351, a 2.82% increase over the total taxable sales of $24,682,772,928 reported during calendar year 2024.

SAN JOAQUIN COUNTY
Taxable Retail Sales
Number of Permits and Valuation of Taxable Transactions (Dollars in Thousands)
Retail Stores Total All Outlets
Number
of Permits
Taxable
Transactions
Number
of Permits
Taxable
Transactions
2021 10,642 $15,153,915 17,665 $22,306,576
2022 10,884 15,342,203 18,100 23,625,470
2023 10,632 15,584,742 17,666 23,507,449
2024 10,831 16,862,302 18,099 24,682,773
2025 10,956 17,348,763 18,405 25,379,956
Source: State of California, Board of Equalization.

Item 8.1
Mountain House Page 1196 of 1946 C-5
Median Effective Buying Income
“Effective Buying Income” is defined as personal income less personal tax and nontax payments, a number often referred to as “disposable” or “after-tax” income. Personal income is the aggregate of wages and salaries, other labor-related income (such as employer contributions to private pension funds), proprietor’s income, rental income (which includes imputed rental income of owner-occupants of non-farm dwellings), dividends paid by corporations, interest income from all sources, and transfer payments (such as pensions and welfare assistance). Deducted from this total are personal taxes (federal, state and local), nontax payments (fines, fees, penalties, etc.) and personal contributions to social insurance.

According to U.S. government definitions, the resultant figure is commonly known as “disposable personal income.”
The following table summarizes the total effective buying income for the City, the County, the State of California, and the United States for the period 2022 through 2026.

CITY OF MOUNTAIN HOUSE, COUNTY OF SAN JOAQUIN,

STATE OF CALIFORNIA AND UNITED STATES
Effective Buying Income
2022 through 2026
Year Area
Total Effective
Buying Income
(000’s Omitted)
Median Household
Effective
Buying Income
2022 City of Mountain House $911,305 $134,611
San Joaquin County 21,672,926 68,971
California 1,452,426,153 77,058
United States 11,208,582,541 64,448
2023 City of Mountain House $1,330,321 $144,614
San Joaquin County 22,168,255 68,912
California 1,461,799,662 77,175
United States 11,454,846,397 65,326
2024 City of Mountain House $1,370,183 $143,573
San Joaquin County 24,445,200 76,847
California 1,510,708,521 80,973
United States 11,987,185,826 67,876
2025 City of Mountain House $1,411,554 $141,311
San Joaquin County 24,833,658 77,622
California 1,557,429,767 82,725
United States 12,525,577,707 69,687
2026 City of Mountain House $1,667,621 $152,413
San Joaquin County 28,892,491 85,982
California 1,730,654,738 90,403
United States 13,932,177,817 75,433
Source: Claritas, LLC.

Item 8.1
Mountain House Page 1197 of 1946 C-6
Education
The County has fourteen school districts within its boundaries, one County Office of Education and one California Youth Authority District. Lammersville Unified School District provides K-12 education for residents of Mountain House.

Community colleges in California are locally operated and administered two-year institutions of higher education. They offer Associate in Arts and Associate in Science degrees and have extensive vocational curricula. There is one community college district in the County, San Joaquin Delta Community College, with an enrollment of more than 17,500 students. In addition to the main Campus in Stockton, San Joaquin Delta Community College offers courses offsite in the cities of Lodi, Manteca, and Mountain House.

The primary institution of higher education offering bachelors and graduate programs in the County is the University of the Pacific, a private four-year institution. Approximately 5,000 students are enrolled at the university’s Stockton campus. Part-time students have options of attending California State University, Stanislaus, which has an enrollment of approximately 1,200 students at its center in Stockton, as well as programs offered locally by Chapman University, Humphrey’s College and School of Law, National University and the University of San Francisco.

Transportation
County residents and businesses are served by surface, sea, and air transportation facilities. Three interstate and eight state highways provide trucking access to major markets of the West. Additional ground transportation is provided by three long-haul and four short-haul railroads. The County has enjoyed commuter rail service since mid-1998. The Altamont Commuter Express (“ACE”) currently operates with three trains and provides commuter rail service between Stockton and San Jose.

The Tri-Valley/San Joaquin Valley Regional Rail Authority was created in 2018 to plan and deliver cost-effective and responsive transit connectivity between the BART system in the Tri-Valley and the ACE that meets the goals of the communities it will serve. The authority is the planning stages for Valley Link, a new 42-mile, 7-station passenger rail project that will establish rail connectivity between BART’s rapid transit system and ACE commuter service in San Joaquin County-linking nearly 500 miles of commuter and intercity rail with more than 130 stations in the Northern California megaregion. The Authority, at its April 12, 2023 meeting, selected a location at the southeast corner of the Mountain House Community as the preferred alternative location for its first station and layover facility in San Joaquin County. The station is contemplated to include 3000 parking spaces and a station platform that could accommodate 1000-passenger trains every fifteen minutes.

Stockton’s Metropolitan Airport is located approximately four miles south of the downtown area and provides passenger and freight jet service to the County. The facilities are owned and maintained by the County, which leases them to commercial airlines and other tenants. In addition, the County is in close proximity to the Oakland, San Francisco, and Sacramento airports.

The Port of Stockton is a deep-water port that provides inland access to shipping lines serving West Coast and world markets. The approximate 2,000 acres of the Port of Stockton includes over 7.7 million square feet of warehouse space and serves as a port of entry for steel and ammonia fertilizer shipments.

Item 8.1
Mountain House Page 1198 of 1946 E-1

APPENDIX D

SUMMARY OF CERTAIN PROVISIONS OF LEGAL DOCUMENTS
Item 8.1
Mountain House Page 1199 of 1946 E-1

APPENDIX E

FORM OF OPINION OF BOND COUNSEL
[Closing Date]
Board of Directors
Mountain House Financing Authority
251 E. Main Street
Mountain House, California 95391
OPINION: Mountain House Financing Authority
Special Tax Revenue Bonds Series 2026B
Members of the Board:

We have acted as bond counsel to the Mountain House Financing Authority (the “Authority”) in connection with the issuance by the Authority of its Special Tax Revenue Bonds Series 2026B (the “Bonds”), pursuant to the Marks-Roos Local Bond Pooling Act of 1985, being Article 4 of Chapter 5, Division 7, Title 1 of the California Government Code (the “Bond Law”) and an Indenture of Trust dated as of September 1, 2026 (the “Indenture”), by and between the Authority and Computershare Trust Company, N.A., as trustee. We have examined the law and such certified proceedings and other papers as we deem necessary to render this opinion.

As to questions of fact material to our opinion, we have relied upon representations of the Authority contained in the Indenture, and in the certified proceedings and other certifications of public officials and opinions furnished to us, without undertaking to verify the same by independent investigation.

Based upon the foregoing, we are of the opinion, under existing law, as follows:

1. The Authority is duly created and validly existing as a joint exercise of powers agency, with the power to adopt the resolution authorizing the issuance of the Bonds, enter into the Indenture and perform the agreements on its part contained therein, and to issue the Bonds.

2. The Bonds have been duly authorized, executed and delivered by the Authority and are valid and binding limited obligations of the Authority, payable solely from the sources provided therefor in the Indenture.

3. The Indenture has been duly entered into by the Authority and constitutes a valid and binding obligation of the Authority enforceable upon the Authority.

4. Pursuant to the Bond Law, the Indenture creates a valid lien on the funds pledged by the Indenture.

Item 8.1
Mountain House Page 1200 of 1946 E-2

5. The interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax. The opinions set forth in the preceding sentence are subject to the condition that the Authority comply with all requirements of the Internal Revenue Code of 1986, as amended, relating to the exclusion from gross income for federal income tax purposes of interest on obligations such as the Bonds. The Authority and the City of Mountain House have made certain representations and covenants in order to comply with each such requirement.

Inaccuracy of those representations, or failure to comply with certain of those covenants, may cause the inclusion of such interest in gross income for federal income tax purposes, which may be retroactive to the date of issuance of the Bonds.

6. The interest on the Bonds is exempt from personal income taxation imposed by the State of California.

Interest on the Bonds may be subject to the corporate alternative minimum tax. We express no opinion regarding other federal tax consequences arising with respect to the ownership, sale or disposition of, or the amount, accrual or receipt of interest on, the Bonds.

The rights of the owners of the Bonds and the enforceability of the Bonds and the Indenture are limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights generally, and by equitable principles, whether considered at law or in equity.

This opinion is given as of the date hereof, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention, or any changes in law that may hereafter occur. Moreover, our opinions are not a guarantee of a particular result, and are not binding on the Internal Revenue Service or any court; rather, our opinions represent our legal judgment based upon our review of existing law that we deem relevant to such opinions and in reliance upon the representations and covenants referenced above. Our engagement with respect to this matter has terminated as of the date hereof.

Respectfully submitted,
Item 8.1
Mountain House Page 1201 of 1946 F-1

APPENDIX F

FORM OF CONTINUING DISCLOSURE CERTIFICATE
[ISSUER CONTINUING DISCLOSURE CERTIFICATE]
$__________

MOUNTAIN HOUSE FINANCING AUTHORITY

SPECIAL TAX REVENUE BONDS
SERIES 2026B
This CONTINUING DISCLOSURE CERTIFICATE (this “Disclosure Certificate”) dated as of ___________, 2026, is executed and delivered by the City of Mountain House (the “City”) in connection with the issuance by the Mountain House Financing Authority of the bonds captioned above (the “Bonds”). The Bonds are being issued pursuant to the provisions of the Marks-Roos Local Bond Pooling Act of 1985, constituting Article 4 (commencing with Section 6584) of Chapter 5, Division 7, Title 1 of the Government Code of the State of California (the “Bond Law”), and under an Indenture of Trust, dated as of September 1, 2026 (the “Indenture”), by and between the Authority and Computershare Trust Company, N.A., as trustee (the “Trustee”).

The Bonds are primarily secured by revenues derived from debt service payments made by the City on the following local obligations (collectively, the “Local Obligations”):
(1) Improvement Area No. 8 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) Special Tax Bonds, Series 2026; and (2) Improvement Area No. 13 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) Special Tax Bonds, Series 2026.

The Local Obligations of Improvement Area No. 8 are being executed and delivered pursuant to a Fiscal Agent Agreement, dated as of June 1, 2025 as amended and supplemented by a Supplemental Fiscal Agent Agreement, dated as of September 1, 2026 ( “Supplemental Agreement No. 1”) and the Local Obligations of Improvement Area No. 13 are being executed and delivered pursuant to a Fiscal Agent Agreement, dated as of September 1, 2026 (the “Fiscal Agent Agreement” and together, the “Local Obligation Fiscal Agent Agreements”) by and between the City and Computershare Trust Company, N.A., as fiscal agent (the “Fiscal Agent”) for each of Improvement Area No. 8 and Improvement Area No. 13 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) (each, an “Improvement Area”).

The City covenants and agrees as follows:

Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the City for the benefit of the holders and beneficial owners of the Bonds and in order to assist the Participating Underwriter in complying with S.E.C. Rule 15c2- 12(b)(5).

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Section 2. Definitions. In addition to the definitions set forth above and in each Local Obligation Fiscal Agent Agreement, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section 2, the following capitalized terms shall have the following meanings:
“Annual Report” means any Annual Report provided by the City pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. “Annual Report Date” means the date that is nine months after the end of the City’s fiscal year (currently April 1 based on the City’s fiscal year end of June 30). “Dissemination Agent” means Kosmont Financial Services, or any successor Dissemination Agent designated in writing by the City and which has filed with the City a written acceptance of such designation.
“Listed Events” means any of the events listed in Section 5(a) of this Disclosure Certificate.
“MSRB” means the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule, or any other repository of disclosure information that may be designated by the Securities and Exchange Commission as such for purposes of the Rule in the future. “Official Statement” means the final official statement executed by the City in connection with the issuance of the Bonds.
“Participating Underwriter” shall mean the original underwriter of the Bonds. “Rule” means Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as it may be amended from time to time.

Section 3. Provision of Annual Reports.
(a) The City shall, or shall cause the Dissemination Agent to, not later than the Annual Report Date, commencing April 1, 2027, with the report for Fiscal Year 2025-26, provide to the MSRB, in an electronic format as prescribed by the MSRB, an Annual Report that is consistent with the requirements of Section 4 of this Disclosure Certificate. Not later than 15 Business Days prior to the Annual Report Date, the City shall provide the Annual Report to the Dissemination Agent (if other than the City). If by 15 Business Days prior to the Annual Report Date the Dissemination Agent (if other than the City) has not received a copy of the Annual Report, the Dissemination Agent shall contact the City to determine if the City is in compliance with the previous sentence. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the City may be submitted separately from the balance of the Annual Report, and later than the Annual Report Date, if not available by that date. If the City’s fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(b).

The City shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by the City hereunder.

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(b) If the City does not provide (or cause the Dissemination Agent to provide) an Annual Report by the Annual Report Date, the City shall provide (or cause the Dissemination Agent to provide) in a timely manner to the MSRB a notice to such effect, in an electronic format as prescribed by the MSRB.
(c) With respect to each Annual Report, the Dissemination Agent shall:
(i) determine prior to each Annual Report Date the then-applicable rules and electronic format prescribed by the MSRB for the filing of annual continuing disclosure reports; and
(ii) if the Dissemination Agent is other than the City, file a report with the City certifying that the Annual Report has been provided pursuant to this Disclosure Certificate, and stating the date it was provided.

Section 4. Content of Annual Reports. The City’s Annual Report shall contain or incorporate by reference the following:
(a) The City’s audited financial statements prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the City’s audited financial statements are not available by the Annual Report Date, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available.
(b) The following information, unless otherwise specified, as of September 30 of the preceding year:
(i) Principal amount of all outstanding Bonds and all outstanding Local Obligations.
(ii) Balance in each Improvement Fund related to the Local Obligations. (iii) Balance in Reserve Fund, and statement of the Reserve Requirement for the Bonds. Statement of projected draws on the Reserve Fund, if any. (iv) Balance in other funds and accounts held by the Authority or the Trustee related to the Bonds.
(v) The Special Tax levy, the delinquency rate, total amount of delinquencies, number of parcels delinquent in payment for the five most recent fiscal years for each Improvement Area.
(vi) Notwithstanding the September 30 reporting date, the following information shall be reported as of the last day of the month immediately preceding the date of the Annual Report rather than as of September 30. Identity of each delinquent taxpayer responsible for 5 percent or more of total Special Tax levied, and the following information: assessor parcel number, assessed value of applicable properties, amount of Special Tax levied, amount delinquent by parcel number and status of foreclosure Item 8.1
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proceedings. If any foreclosure has been completed, summary of results of foreclosure sales or transfers.
(vii) Most recently available total assessed value of all parcels subject to the Special Tax in each Improvement Area.
(viii) With respect to each Improvement Area, update table showing “Projected Special Tax Levy and Value-to-Lien Ratios” in the Official Statement using the most currently available assessed values.
(c) In addition to any of the information expressly required to be provided under this Disclosure Certificate, the City shall provide such further material information, if any, as may be necessary to make the specifically required statements, in the light of the circumstances under which they are made, not misleading.
(d) Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the City or related public entities, which are available to the public on the MSRB’s Internet web site or filed with the Securities and Exchange Commission. The City shall clearly identify each such other document so included by reference.

Section 5. Reporting of Significant Events.
(a) The City shall give, or cause to be given, notice of the occurrence of any of the following Listed Events with respect to the Bonds:
(1) Principal and interest payment delinquencies.
(2) Non-payment related defaults, if material.
(3) Unscheduled draws on debt service reserves reflecting financial difficulties.
(4) Unscheduled draws on credit enhancements reflecting financial difficulties.
(5) Substitution of credit or liquidity providers, or their failure to perform. (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security.
(7) Modifications to rights of security holders, if material. (8) Bond calls, if material, and tender offers.
(9) Defeasances.

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(10) Release, substitution, or sale of property securing repayment of the securities, if material.
(11) Rating changes.
(12) Bankruptcy, insolvency, receivership or similar event of the City or other obligated person.
(13) The consummation of a merger, consolidation, or acquisition involving the City or an obligated person, or the sale of all or substantially all of the assets of the City or an obligated person (other than in the ordinary course of business), the entry into a definitive agreement to undertake such an action, or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material. (14) Appointment of a successor or additional fiscal agent or the change of name of a fiscal agent, if material.
(15) Incurrence of a financial obligation of the City, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the City, any of which affect security holders, if material (for the definition of “financial obligation,” see clause (e)).
(16) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the City, any of which reflect financial difficulties (for the definition of “financial obligation,” see clause (e)).
(b) Whenever the City obtains knowledge of the occurrence of a Listed Event, the City shall, or shall cause the Dissemination Agent (if not the City) to, file a notice of such occurrence with the MSRB, in an electronic format as prescribed by the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the Listed Event.

Notwithstanding the foregoing, notice of Listed Events described in subsections (a)(8) and (9) above need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to holders of affected Bonds under the Indenture. (c) The City acknowledges that the events described in subparagraphs (a)(2), (a)(7), (a)(8) (if the event is a bond call), (a)(10), (a)(13), (a)(14) and (a)(15) of this Section 5 contain the qualifier “if material” and that subparagraph (a)(6) also contains the qualifier “material” with respect to certain notices, determinations or other events affecting the tax status of the Bonds.

The City shall cause a notice to be filed as set forth in paragraph (b) above with respect to any such event only to the extent that it determines the event’s occurrence is material for purposes of U.S. federal securities law. Whenever the City obtains knowledge of the occurrence of any of these Listed Events, the City will as soon as possible determine if such event would be material under applicable federal securities law. If such event is determined to be material, the City will cause a notice to be filed as set forth in paragraph (b) above. The Dissemination Agent shall not be responsible for determining whether an event is material. (d) For purposes of this Disclosure Certificate, any event described in paragraph (a)(12) above is considered to occur when any of the following occur: the appointment of a Item 8.1
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receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. (e) For purposes of Section 5(a)(15) and (16), “financial obligation” means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term financial obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule.

Section 6. Identifying Information for Filings with the MSRB. All documents provided to the MSRB pursuant to this Disclosure Certificate shall be accompanied by identifying information as prescribed by the MSRB.

Section 7. Termination of Reporting Obligation. The City’s obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the final maturity of the Bonds, the City shall give notice of such termination in the same manner as for a Listed Event under Section 5(b).

Section 8. Dissemination Agent. The City may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any Dissemination Agent, with or without appointing a successor Dissemination Agent. Any Dissemination Agent may resign by providing 30 days’ written notice to the City.

Section 9. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the City may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied:
(a) if the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Bonds, or type of business conducted; (b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) the proposed amendment or waiver either (i) is approved by holders of the Bonds in the manner provided in each Local Obligation Fiscal Agent Agreement for amendments to the Fiscal Agent Agreement with the consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Bonds.

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If the annual financial information or operating data to be provided in the Annual Report is amended pursuant to the provisions hereof, the first Annual Report filed pursuant hereto containing the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided.

If an amendment is made to this Disclosure Certificate modifying the accounting principles to be followed in preparing financial statements, the Annual Report for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison shall include a qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information, in order to provide information to investors to enable them to evaluate the ability of the City to meet its obligations. To the extent reasonably feasible, the comparison shall be quantitative.

A notice of any amendment made pursuant to this Section 9 shall be filed in the same manner as for a Listed Event under Section 5(b).

Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the City from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the City chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the City shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.

Section 11. Default. If the City fails to comply with any provision of this Disclosure Certificate, the Participating Underwriter or any holder or beneficial owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under each Local Obligation Fiscal Agent Agreement, and the sole remedy under this Disclosure Certificate in the event of any failure of the City to comply with this Disclosure Certificate shall be an action to compel performance.

Section 12. Duties, Immunities and Liabilities of Dissemination Agent. (a) The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the City agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which they may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys’ fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct. The Dissemination Agent shall have no duty or obligation to review any information provided to it by the City hereunder and shall not be deemed to be acting in any fiduciary capacity for the City, the Bond holders, or any other party. The obligations of the City under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds.

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(b) The Dissemination Agent shall be paid compensation by the City for its services provided hereunder in accordance with its schedule of fees as amended from time to time, and shall be reimbursed for all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder.

Section 13. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the City, the Dissemination Agent, the Participating Underwriter and the holders and beneficial owners from time to time of the Bonds, and shall create no rights in any other person or entity.

Section 14. Counterparts. This Disclosure Certificate may be executed in several counterparts, each of which shall be regarded as an original, and all of which shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have executed this Disclosure Certificate as of the date first above written.

CITY OF MOUNTAIN HOUSE, for and on
behalf of City of Mountain House
Community Facilities District No. 2024-1
(Public Facilities and Services)
By:

Name:

Title:

AGREED AND ACCEPTED:

KOSMONT FINANCIAL SERVICES
as Dissemination Agent
By:

Name:

Title:

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FORM OF CONTINUING DISCLOSURE CERTIFICATE
(Developer)
IMPROVEMENT AREA NO. ____OF

CITY OF MOUNTAIN HOUSE
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC FACILITIES AND SERVICES)
SPECIAL TAX BONDS SERIES 2026
THIS CONTINUING DISCLOSURE CERTIFICATE (Developer) (the “Disclosure Certificate”) dated as of __________, 2026, is executed and delivered by Lennar Homes of California LLC, a California limited liability company (the “Developer”) in connection with the issuance of the bonds captioned above relating to Improvement Area No. ____ of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) Special Tax Bonds Series 2026 (the “Bonds”). [As applicable: The Local Obligations of Improvement Area No. 8 are being executed and delivered pursuant to a Fiscal Agent Agreement, dated as of June 1, 2025 as amended and supplemented by a Supplemental Fiscal Agent Agreement, dated as of September 1, 2026 by and between the City and Computershare Trust Company, N.A., as fiscal agent (the “Fiscal Agent”) (together the, “Fiscal Agent Agreement”) or The Local Obligations of Improvement Area No. 13 are being executed and delivered pursuant to a Fiscal Agent Agreement, dated as of September 1, 2026 (the “Fiscal Agent Agreement”) by and between the City and Computershare Trust Company, N.A., as fiscal agent (the “Fiscal Agent”).] The Developer covenants and agrees as follows:

Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Developer for the benefit of the holders and beneficial owners of the Bonds.

Section 2. Definitions. In addition to the definitions set forth herein and in each Local Obligation Fiscal Agent Agreement, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Disclosure Certificate, the following capitalized terms shall have the following meanings:
“Affiliate” means with respect to the Developer, any other Person (i) who directly, or indirectly through one or more intermediaries, is currently controlling, controlled by or under common control with the Developer, and (ii) for whom information, including financial information or operating data, concerning such Person is material to potential investors in their evaluation of an Improvement Area and investment decision regarding the Bonds (i.e., information regarding such Person’s assets or funds that would materially affect the Developer’s ability to develop the Property as described in the Official Statement or to pay its Special Taxes on the Property (to the extent the responsibility of the Developer) prior to delinquency). For purposes hereof, the term “control” (including the terms “controlling,” “controlled by” or “under common control with”) means the present possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. The Land Banks are not Affiliates of the Developer.
“Assumption Agreement” means an undertaking of a Major Owner, or an Affiliate thereof, for the benefit of the holders and beneficial owners of the Bonds containing terms substantially similar to this Disclosure Certificate (as modified for such Major Owner’s development and financing plans with respect to each Improvement Area), whereby such Major Owner or Affiliate Item 8.1
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agrees to provide Periodic Reports and notices of significant events, setting forth the information described in sections 4 and 5 hereof, respectively, with respect to the portion of the property in each Improvement Area owned by such Major Owner and its Affiliates and, at the option of the Developer or such Major Owner, agrees to indemnify the Dissemination Agent (if any) pursuant to a provision substantially in the form of Section 11 hereof. As set forth in Section 6(b), the sale of property to a Major Owner shall not require the execution of an Assumption Agreement if such Major Owner is already a party to a continuing disclosure certificate in form and substance similar to this Disclosure Certificate with respect to the Bonds, and under which the property conveyed to such Major Owner will become subject to future Semi-Annual Reports. In addition, the conveyance of property from the Land Banks to the Developer under the Option Agreements is subject to this Disclosure Certificate and shall not require the Developer to enter into an Assumption Agreement.
“Dissemination Agent” means the Developer, or any successor Dissemination Agent designated in writing by the Developer and which has filed with the Developer, the City, and the Participating Underwriter a written acceptance of such designation, and which is experienced in providing dissemination agent services such as those required under this Disclosure Certificate. “District” means the City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services).
“EMMA” shall mean the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access System for municipal securities disclosures, maintained on the Internet at http://emma.msrb.org/.
“Improvement Area” means Improvement Area No. __ of the District. “Land Bank” means[as applicable: , together, AG EHC II (LEN) CA 2, L.P., a Delaware limited partnership, AG EHC II (LEN) CA 4B, L.P., a Delaware limited partnership, the land banks for the Developer pursuant to the Option Agreement or DRP Solaris CA 2, LLC. a Delaware limited liability company, the land bank for the Developer pursuant to the Option Agreement].
“Listed Events” means any of the events listed in Section 5(a) of this Disclosure Certificate.
“Major Owner” means, as of any date of determination, a Person that, together with the Person’s Affiliates, owns or is under option to acquire from the Land Banks, more than ____ taxable parcels in Improvement Area No. ___. During the term of the Option Agreement, the applicable Land Bank shall not be considered a Major Owner. “Official Statement” means the final official statement executed by the City in connection with the issuance of the Bonds.
“Option Agreement” means [as applicable: together, the Option Agreement (Mountain House 2, California) and the Option Agreement (Mountain House 3, California), each dated August 22, 2023, entered into between Developer and AG EHC II (LEN) CA 2, L.P., as they may be amended from time to time or the Option Agreement, dated December 12, 2024, entered into between the Developer and DRP Solaris CA 2, LLC, as amended and assigned and as it may be amended from time to time].

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“Periodic Report” means any Periodic Report provided by the Developer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. “Person” means an individual, a corporation, a partnership, a limited liability company, an association, a joint stock company, a trust, any unincorporated organization or a government or political subdivision thereof.
“Property” means, as of the date of determination, the real property in Improvement Area No. __ subject to the Special Tax that is owned by (i) the Developer, (ii) any Affiliate of the Developer, (iii) the Land Bank (during the term of the Option Agreement), and (iv) the property in Improvement Area No. __ that the Developer sold to a Major Owner who has not assumed the undertakings of this Disclosure Certificate under Section 6(b) that is owned by such Major Owner. For avoidance of doubt, any parcel that is exempt from the Special Taxes shall not be considered Property for purposes of this Disclosure Certificate. “Report Date” means April 1 and October 1 of each year, commencing April 1, 2027. If, in any year, the Report Date falls on a Saturday, Sunday, or a holiday, such Report Date shall be extended to the next following day that is not a Saturday, Sunday, or holiday. “Special Taxes” means the special taxes levied on taxable property in each respective Improvement Area.

Section 3. Provision of Periodic Reports.
(a) So long as the Developer’s obligations under this Disclosure Certificate have not been terminated pursuant to Section 6 below, the Developer shall, or, upon written direction of the Developer the Dissemination Agent shall, not later than the Report Date, commencing April 1, 2027, file or cause to be filed with EMMA a Periodic Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. Not later than 15 calendar days prior to the Report Date, the Developer shall provide the Periodic Report to the Dissemination Agent (if different from the Developer). The Developer shall provide a written certification with (or included as a part of) each Periodic Report furnished to the Dissemination Agent (if different from the Developer), to the effect that such Periodic Report constitutes the Periodic Report required to be furnished by it under this Disclosure Certificate. The Dissemination Agent (if other than the Developer), may conclusively rely upon such certification of the Developer and shall have no duty or obligation to review the Periodic Report. The Periodic Report may be submitted as a single document or as separate documents comprising a package and may incorporate by reference other information as provided in Section 4 of this Disclosure Certificate. (b) If the Dissemination Agent does not receive a Periodic Report by 15 calendar days prior to the Report Date, the Dissemination Agent shall send a reminder notice to the Developer that the Periodic Report has not been provided as required under Section 3(a) above. The reminder notice shall instruct the Developer to determine whether its obligations under this Disclosure Certificate have terminated (pursuant to Section 6 below) and, if so, to provide the Dissemination Agent with a notice of such termination in the same manner as for a Listed Event (pursuant to Section 5 below). If the Developer does not provide, or cause the Dissemination Agent to provide, a Periodic Report to EMMA by the Report Date as required in subsection (a) above, the Dissemination Agent shall send a notice to EMMA in the format prescribed by the MSRB, with a copy to City and the Participating Underwriter.

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(c) With respect to each Periodic Report, the Dissemination Agent shall, to the extent the Periodic Report has been furnished to it, file the Periodic Report with EMMA and file a report with the Developer (if the Dissemination Agent is other than the Developer), certifying that the Periodic Report has been provided pursuant to this Disclosure Certificate, stating the date it was filed with EMMA.
(d) Any Periodic Report required hereunder may be consolidated with any periodic report required by any other continuing disclosure undertaking of the Developer for Improvement Area No. ___.

Section 4. Content of Periodic Reports. Each Periodic Report shall contain or incorporate by reference the information set forth in Exhibit A relating to the Developer, any or all of which may be included by specific reference to other documents, including official statements of debt issues of the Developer or related public entities, which have been submitted to EMMA or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from EMMA. The Developer shall clearly identify each such other document so included by reference.

In addition to any of the information expressly required to be provided in Exhibit A, each Periodic Report shall include such further information, if any, as may be necessary to make the specifically required statements, in the light of the circumstances under which they are made, not misleading.

Section 5. Reporting of Significant Events.
(a) So long as the Developer’s obligations under this Disclosure Certificate have not been terminated pursuant to Section 6 below, the Developer shall give, or cause to be given, notice of the occurrence of any of the following Listed Events with respect to itself or the Property, if material:
(i) bankruptcy or insolvency proceedings commenced by or against the Developer and, if known, any bankruptcy or insolvency proceedings commenced by or against any Affiliate of the Developer that is reasonably likely to have a significant impact on the Developer’s ability to pay Special Taxes on the Property or to sell or develop the Property;
(ii) failure to pay any taxes, special taxes (including the Special Taxes) or assessments due with respect to the Property on or prior to the delinquency date to the extent such failure is not promptly cured by the Developer upon discovery thereof; (iii) filing of a lawsuit of which the Developer is aware against the Developer or an Affiliate seeking damages, which is reasonably likely to have a material and adverse impact on the Developer’s ability to pay Special Taxes on the Property prior to delinquency or to sell or develop the Property;
(iv) material damage to or destruction of any of the improvements on the Property; and
(v) the termination of the Option Agreement prior to the takedown of all Property subject to the Option Agreement; and
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(vi) any payment default or other material default by the Developer that continues to exist beyond any applicable notice and cure periods on any loan with respect to the construction of improvements on the Property. (b) Whenever the Developer obtains knowledge of the occurrence of a Listed Event, the Developer shall as soon as possible determine if such event would be material under applicable Federal securities law.
(c) If the Developer determines that knowledge of the occurrence of a Listed Event would be material under applicable Federal securities law, the Developer shall, or shall cause the Dissemination Agent to, promptly file a notice of such occurrence with EMMA, with a copy to the City and the Participating Underwriter.

Section 6. Duration of Reporting Obligation.
(a) All the Developer’s obligations hereunder shall commence on the date hereof and terminate (except as provided in Section 11) on the earliest to occur of the following:
(i) upon the legal defeasance, prior redemption or payment in full of all the Bonds; or
(ii) at such time as the Developer is no longer a Major Owner, and is no longer obligated hereunder as to any other Major Owner, including the Land Bank (in the event the Option Agreement is terminated and the Land Bank is then a Major Owner) pursuant to subsection (b) below; or
(iii) the date on which the Developer prepays in full all of the Special Taxes attributable to the Property.

The Developer shall give notice of the termination of its obligations under this Disclosure Certificate in the same manner as for a Listed Event under Section 5. (b) The Developer’s obligations hereunder shall terminate with respect to any portion of the Property on the date such portion of the Property is sold to a Person that is not a Major Owner. If any portion of the Property is sold to a Major Owner or if the Option Agreement is terminated and the Land Bank would be a Major Owner, the Developer shall remain obligated hereunder with respect to such Property unless the obligations have been assumed by the Major Owner or the Land Bank (if the Land Bank is then a Major Owner), as applicable], pursuant to an Assumption Agreement. The Developer’s obligations under this Disclosure Certificate with respect to a Major Owner or the Land Bank (in the event the Option Agreement is terminated and the Land Bank is then a Major Owner) that has not executed an Assumption Agreement shall terminate upon the earlier to occur of (i) the date on which the Developer’s obligations with respect to such Major Owner or the Land Bank are assumed under an Assumption Agreement entered into pursuant to this Section 6(b), or (ii) the date on which the Major Owner or the Land Bank is no longer considered a Major Owner. The Developer shall provide a copy of the executed Assumption Agreement to the City and the Participating Underwriter. However, a Major Owner shall not be required to enter into an Assumption Agreement if such Major Owner is already a party to a continuing disclosure certificate in form and substance similar to this Disclosure Certificate with respect to the Bonds, and under which the property conveyed to such Major Owner will become subject to future Periodic Reports. In addition, the conveyance of property from the Land Bank to the Developer under the Option Item 8.1
Mountain House Page 1214 of 1946 F-14
Agreement is subject to this Disclosure Certificate and shall not require the Developer to enter into an Assumption Agreement.

Section 7. Dissemination Agent. The Developer may, from time to time, appoint or engage a Dissemination Agent to assist the Developer in carrying out its obligations under this Disclosure Certificate, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The initial Dissemination Agent shall be the Developer. The Dissemination Agent may resign by providing thirty days’ written notice to the City, the Participating Underwriter and the Developer.

Section 8. No Amendment. The Developer may not amend this Disclosure Certificate.

Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Developer from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Periodic Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the Developer chooses to include any information in any Periodic Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the Developer shall have no obligation under this Disclosure Certificate to update such information or include it in any future Periodic Report or notice of occurrence of a Listed Event.

Section 10. Default. In the event of a failure of the Developer to comply with any provision of this Disclosure Certificate, the Participating Underwriter and any holder or beneficial owner of the Bonds may, take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Developer to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under each Local Obligation Fiscal Agent Agreement, and the sole and exclusive remedy under this Disclosure Certificate in the event of any failure of the Developer to comply with this Disclosure Certificate shall be an action to compel performance.

Neither the Developer nor the Dissemination Agent shall have any liability to any holder or beneficial owner of the Bonds or any other party for monetary damages or financial liability of any kind whatsoever arising from or relating to this Disclosure Certificate.

Section 11. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the Developer agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents (each, an “Indemnified Party”), harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the reasonable costs and expenses (including attorneys’ fees) of defending against any claim of liability, but excluding losses, liabilities, costs and expenses due to an Indemnified Party’s negligence or willful misconduct or failure to perform its duties hereunder. The Dissemination Agent (if other than the Developer) shall be paid compensation for its services provided hereunder from Special Taxes levied for administration of the applicable Improvement Area in accordance with its schedule of fees as amended from time to time, which schedule, as amended, shall be reasonably acceptable, and all reasonable expenses, reasonable legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent shall have no duty or obligation to review any information provided to it hereunder and shall not be deemed to be acting in any fiduciary capacity for the City, the Developer, the Fiscal Agent, the Item 8.1
Mountain House Page 1215 of 1946 F-15
Bond owners, or any other party. The obligations of the Developer under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds.

Section 12. Notices. Any notice or communications to be among any of the parties to this Disclosure Certificate may be given by regular, overnight or electronic mail as follows:

To the Developer Lennar Homes
2603 Camino Ramon, Suite 525
San Ramon, CA 94583
Attention: Leah Denman,
Senior Project Manager, Bay Area Division
Email: [email protected]
With a copy to:

O’Neil LLP
19800 MacArthur Blvd., Suite 650
Irvine, CA 92612
Attention: Sandra Galle
Email: [email protected]
To the City: City of Mountain House
Attn: CFD Administrator
251 E. Main Street
Mountain House, CA 95391
Email: [email protected]
To the Participating
Underwriter: Piper Sandler & Co.
3626 Fair Oaks Boulevard, Suite 100
Sacramento, CA 95864
Email: [email protected]
Any person may, by written notice to the other persons listed above, designate a different address or telephone number(s) to which subsequent notices or communications should be sent.

Item 8.1
Mountain House Page 1216 of 1946 F-16
Section 13. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the City, the Developer (its successors and assigns), the Dissemination Agent, the Participating Underwriter and holders and beneficial owners from time to time of the Bonds and shall create no rights in any other person or entity. All obligations of the Developer hereunder shall be assumed by any legal successor to the obligations of the Developer as a result of a sale, merger, consolidation or other reorganization.

IN WITNESS WHEREOF, the Developer has executed this Disclosure Certificate as of the date first above written.

Lennar Homes of California LLC,
a California limited liability company
By: ______________________________
Erin Epperson,
Vice President
Item 8.1
Mountain House Page 1217 of 1946 F-17

EXHIBIT A

PERIODIC REPORT
$______________

MOUNTAIN HOUSE FINANCING AUTHORITY

SPECIAL TAX REVENUE BONDS
SERIES 2026B
Relating to:

IMPROVEMENT AREA NO. ___ OF

CITY OF MOUNTAIN HOUSE
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC FACILITIES AND SERVICES)
SPECIAL TAX BONDS SERIES 2026
This Periodic Report is hereby submitted under Section 4 of the Continuing Disclosure Certificate (Developer) (the “Disclosure Certificate”) dated ________, 2026 executed by Lennar Homes of California LLC, a California limited liability company (the “Developer”) in connection with the issuance of the above-captioned bonds by the Mountain House Financing Authority with respect to Improvement Area No. __ of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) (the “District” and the “Improvement Area” therein).

Capitalized terms used in this Periodic Report but not otherwise defined have the meanings given to them in the Disclosure Certificate.

I. Property Ownership and Development
The information in this section is provided as of ____________________ (this date must be not more than 60 days before the date of this Periodic Report).

A. Description of the Property in Improvement Area No. __ of the District (the “Property”), in substance and form similar to such information in APPENDIX [__]-1 to the Official Statement under the caption “Development Within Improvement Area No. __”:
________________________________________________________________________ ________________________________________________________________________ B. Updated information regarding land development and home construction activities with respect to the Property described in APPENDIX [__]-1 to the Official Statement under the caption “Development Within Improvement Area No. __” and “Land Banking Arrangement” or the Periodic Report last filed in accordance with the Disclosure Certificate, including the number of parcels acquired by the Developer from the Land Banks pursuant to the Option Agreements:
________________________________________________________________________ ________________________________________________________________________ Item 8.1
Mountain House Page 1218 of 1946 F-18
C. Status of building permits and any material changes to the description of land use or development entitlements for the Property described in APPENDIX [__]-1 to the Official Statement under the caption “Development Within Improvement Area No. __” or the Periodic Report last filed in accordance with the Disclosure Certificate:
________________________________________________________________________ ________________________________________________________________________ D. Status of any land purchase contracts with regard to the Property, including sales of land in Improvement Area No. ___ to other property owners (other than individual homeowners):
________________________________________________________________________ ________________________________________________________________________ II. Legal and Financial Status of Developer
Unless such information has previously been included or incorporated by reference in a Periodic Report, describe any change in the legal structure of the Developer or the financial condition and financing plan of the Developer that would materially and adversely interfere with its ability to complete its development plan described in the Official Statement. ________________________________________________________________________ ________________________________________________________________________ III. Change in Development or Financing Plans
Unless such information has previously been included or incorporated by reference in a Periodic Report, describe any development plans or financing plans relating to the Property that are materially different from the proposed development and financing plan described in the Official Statement.
________________________________________________________________________ ________________________________________________________________________ IV. Official Statement Updates
Unless such information has previously been included or incorporated by reference in a Periodic Report, describe any other significant changes in the information relating to the Developer or the Property contained in APPENDIX [__]-1 to the Official Statement under the captions “Use of Proceeds of the Bonds,” “Development within Improvement Area No. ____” and “The Developer,” that would materially and adversely interfere with the Developer’s ability to develop and sell the Property as described in the Official Statement. ________________________________________________________________________ ________________________________________________________________________ Item 8.1
Mountain House Page 1219 of 1946 F-19
V. Other Material Information
In addition to any of the information expressly required above, provide such further information, if any, as may be necessary to make the specifically required statements, in the light of the circumstances under which they are made, not misleading. ________________________________________________________________________ ________________________________________________________________________ Certification
The undersigned Developer hereby certifies that this Periodic Report constitutes the Periodic Report required to be furnished by the Developer under the Disclosure Certificate.

ANY STATEMENTS REGARDING THE DEVELOPER, THE DEVELOPMENT OF THE PROPERTY, THE DEVELOPER’S FINANCING PLAN OR FINANCIAL CONDITION, OR THE

BONDS, OTHER THAN STATEMENTS MADE BY THE DEVELOPER IN AN OFFICIAL

RELEASE, OR FILED WITH THE MUNICIPAL SECURITIES RULEMAKING BOARD, ARE NOT AUTHORIZED BY THE DEVELOPER. THE DEVELOPER IS NOT RESPONSIBLE FOR

THE ACCURACY, COMPLETENESS OR FAIRNESS OF ANY SUCH UNAUTHORIZED STATEMENTS.

THE DEVELOPER HAS NO OBLIGATION TO UPDATE THIS PERIODIC REPORT OTHER THAN AS EXPRESSLY PROVIDED IN THE DISCLOSURE CERTIFICATE.

Dated:

Lennar Homes of California LLC
a California limited liability company
FORM – DO NOT SIGN
By: ______________________________
Name: ___________________________
Title: _____________________________
Item 8.1
Mountain House Page 1220 of 1946 G-1

APPENDIX G

DTC AND THE BOOK-ENTRY ONLY SYSTEM
The following description of the Depository Trust Company (“DTC”), the procedures and record keeping with respect to beneficial ownership interests in the Bonds, payment of principal, interest and other payments on the Bonds (herein, the “Securities”) to DTC Participants or Beneficial Owners, confirmation and transfer of beneficial ownership interest in the Securities and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC. Accordingly, no representations can be made concerning these matters and neither the DTC Participants nor the Beneficial Owners should rely on the foregoing information with respect to such matters, but should instead confirm the same with DTC or the DTC Participants, as the case may be.

Neither the issuer of the Securities (the “Issuer”) nor the fiscal agent appointed with respect to the Securities (the “Agent”) takes any responsibility for the information contained in this Appendix.

No assurances can be given that DTC, DTC Direct Participants or Indirect Participants will distribute to the Beneficial Owners (a) payments of interest, principal or premium, if any, with respect to the Securities, (b) certificates representing ownership interest in or other confirmation or ownership interest in the Securities, or (c) redemption or other notices sent to DTC or Cede & Co., its nominee, as the registered owner of the Securities, or that they will so do on a timely basis, or that DTC, DTC Direct Participants or DTC Indirect Participants will act in the manner described in this Appendix. The current “Rules” applicable to DTC are on file with the Securities and Exchange Commission and the current “Procedures” of DTC to be followed in dealing with DTC Participants are on file with DTC.

1. The Depository Trust Company (“DTC”) will act as securities depository for the securities (the “Securities”). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Security certificate will be issued for each issue of the Securities, each in the aggregate principal amount of such issue, and will be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue.

2. DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934.

DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is Item 8.1
Mountain House Page 1221 of 1946 G-2
a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of AA+.

The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. The information contained on this Internet site is not incorporated herein by reference.

3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC’s records. The ownership interest of each actual purchaser of each Security (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry system for the Securities is discontinued.

4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.

5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.

6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.

Item 8.1
Mountain House Page 1222 of 1946 G-3

7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy).

8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from Issuer or Agent, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, Agent, or Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time.

Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of Issuer or Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.

9. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable notice to Issuer or Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed and delivered.

10. Issuer may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and delivered to DTC.

11. The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that Issuer and Agent believe to be reliable, but neither Issuer nor Agent takes no responsibility for the accuracy thereof.

Item 8.1
Mountain House Page 1223 of 1946 TITLE: Public Hearing to Consider the MHD C-R Land Use Changes Project North of Byron Road, Including Amendments to the General Plan, Master Plan, Specific Plan, Zoning, and Parks, Recreation and Leisure Plan, and Four Major Subdivision Applications
MEETING DATE: August 26, 2026
PREPARED BY: John B. Anderson and David Niskanen, Contract Planners

RECOMMENDATION
Staff recommends that the City Council take the following actions:

1. Adopt a Resolution approving an Addendum to the Mountain House 2004 Specific Plan II Initial Study for General Plan Amendment No. GPA-25-002, Master Plan Amendment No. MPA-25-002, Specific Plan Amendment No. SPA-25-002, Zone Reclassification No. ZR-25-001, the Parks, Recreation and Leisure Plan Amendment, and Major Subdivision Application Nos. TSM-25-002, TSM-25-003, TSM-25-005, and TSM-25-006 (Attachment A).

2. Adopt a Resolution approving General Plan Amendment No. GPA-25-002 and making the required findings (Attachment B).

3. Adopt a Resolution approving Master Plan Amendment No. MPA-25-002 and making the required findings (Attachment C).

4. Adopt a Resolution approving Specific Plan II Amendment No. SPA-25-002 and making the required findings (Attachment D).

5. Introduce and conduct the first reading of an Ordinance approving Zone Reclassification No. ZR25-001 and making the required findings (Attachment E).

6. Adopt a Resolution approving the Parks, Recreation and Leisure Plan Amendment and making the required findings (Attachment F).

7. Adopt a Resolution approving Major Subdivision Application No. TSM-25-002 (Tract 4265), located in Neighborhood I, subject to the Conditions of Approval, and making the required findings (Attachment G).

8. Adopt a Resolution approving Major Subdivision Application No. TSM-25-003 (Tract 4268), located in Neighborhood I, subject to the Conditions of Approval, and making the required findings (Attachment H).

Item 9.1
Mountain House Page 1224 of 1946

9. Adopt a Resolution approving Major Subdivision Application No. TSM-25-005 (Tract 4270), located in Neighborhood J, subject to the Conditions of Approval, and making the required findings (Attachment I).

10. Adopt a Resolution approving Major Subdivision Application No. TSM-25-006 (Tract 3935), located in Neighborhood K, subject to the Conditions of Approval, and making the required findings (Attachment J).

BACKGROUND
Mountain House Master Plan and Specific Plan II
Mountain House is a 4,780-acre master planned community located in western San Joaquin County. The Mountain House Master Plan was approved in 1994 following certification of the Final Environmental Impact Report (FEIR) (State Clearinghouse No. 190020776) for the Mountain House Master Plan and Specific Plan I.

Specific Plan II was subsequently approved in 2004 to implement the goals and objectives of the Master Plan for Neighborhoods C, D, H, I, J, K, and L, and the Town Center. An Initial Study and Mitigated Negative Declaration were approved prior to adoption of Specific Plan II.

Concurrent with the approval of Specific Plan II, the Master Developer, Trimark Communities, LLC, and San Joaquin County executed a Specific Plan II Development Agreement and approved related amendments to the Master Plan and other community approvals. Collectively, these approvals established vested development rights for the dwelling units and nonresidential acreage authorized under Specific Plan II. These vested rights include development under applicable County policies, standards, and ordinances in effect at the time of the Development Agreement, including the density and pace of development within Specific Plan II. The Development Agreement became effective December 1, 2000, and expires February 8, 2035.

Neighborhoods C, D, H, and portions of the Town Center have been fully developed in accordance with applicable community approvals. Significant infrastructure has also been installed by Mountain House Developers (MHD) to support development within Neighborhoods I, J, K, and L. As a result of mass grading and infrastructure installation, approximately 85% of the previously approved project area has been developed. Portions of Neighborhood J have also been completed with residential development and public uses.

Item 9.1
Mountain House Page 1225 of 1946 Prior Amendments and Development Approvals
Since adoption of Specific Plan II, the Master Plan, Specific Plan II, and related development approvals have been amended several times to respond to changing development conditions and community needs.

In 2007, Master Plan Amendment PA-0600335 and Specific Plan II Amendment PA-0600337 revised the Neighborhoods I and J land plans and included new tentative maps. The amendments revised lot and golf course layouts and eliminated previously proposed work within Dry Creek that would have required a U.S.

Army Corps of Engineers Section 404 permit, allowing the existing Dry Creek wetland areas to remain in place.

In 2017, Master Plan Amendment PA-1700002 and Specific Plan II Amendment PA-1700004 revised the Town Center land plan, including adjustments to the roadway network and relocation of various land uses.

Item 9.1
Mountain House Page 1226 of 1946 In 2019, Master Plan Amendment PA-1800039 and Specific Plan II Amendment PA-1800040 included lot layout revisions, conversion of the golf course to open space and commercial recreation uses, and reallocation of a portion of the age-restricted units within Neighborhoods J and K.

In 2021, the San Joaquin County Community Development Department approved MHD's request to determine that minor modifications to the approved tentative maps for Neighborhoods I and L were in substantial conformance with PA-0600327.

In 2022, Master Plan Amendment PA-2100205 and Specific Plan II Amendment PA-2100206 included lot layout revisions, reduced the number of age-restricted housing units from 2,587 to 870, eliminated the requirement that Neighborhood I be restricted to active-adult residents, relocated Community Park and Neighborhood Park sites, and added a 16-acre K-8 school site to accommodate additional students associated with allowing non-age-restricted housing in Neighborhood I.

In 2024, the San Joaquin County Board of Supervisors approved an amendment to the Subsequent Development Agreement (SDA) extending the life of approved and future tentative maps to align with the SDA. The action extended the tentative maps for Neighborhoods I, J, K, and L through February 8, 2035, with opportunities for up to 15 additional years of extensions as provided by the amended SDA (Board Resolution No. R-24-113 and Ordinance No. 464).

Also in 2024, the Mountain House City Council approved Master Plan Amendment PA-2300285 and Specific Plan II Amendment PA-2300284. These amendments revised the acreage of Residential Low, Residential Medium, Commercial Recreation, Community Park, Public Facilities, and Regional Park land use designations within Neighborhoods I, J, K, and L. The amendments also eliminated the requirement that portions of Neighborhoods J and K be restricted to active-adult residents and shifted the remaining age-restricted housing obligation to Neighborhood L.

DISCUSSION
Project Overview
The Applicant, Mountain House Developers, LLC (MHD), is requesting a series of land use and subdivision approvals affecting six locations within Neighborhoods I, J, K, and L, generally located north of Byron Road.

The Proposed Project includes amendments to the City's General Plan, Master Plan, Specific Plan II, zoning, and Parks, Recreation and Leisure Plan, together with four Major Tentative Subdivision Maps.

Specifically, the Proposed Project includes the following applications:

1. General Plan Amendment No. GPA-25-002

2. Master Plan Amendment No. MPA-25-002

3. Specific Plan II Amendment No. SPA-25-002

4. Zone Reclassification No. ZR-25-001
Item 9.1
Mountain House Page 1227 of 1946

5. Parks, Recreation and Leisure Plan Amendment

6. Four Major Subdivision Applications:
• TSM-25-002 (Tract 4265), Neighborhood I
• TSM-25-003 (Tract 4268), Neighborhood I
• TSM-25-005 (Tract 4270), Neighborhood J
• TSM-25-006 (Tract 3935), Neighborhood K
The areas associated with the Proposed Project are illustrated in the following exhibit.

Location Map
Proposed Land Use Changes and Subdivision Maps
The proposed amendments and subdivision applications are described below by Area and Neighborhood, corresponding to the locations identified in the Location Map above.

1. AREA 1 – NEIGHBORHOOD I (APN: 258-26-009, -010, -022, and -037) – AMENDMENTS TO

GENERAL PLAN, MASTER PLAN, SPECIFIC PLAN II, ZONE RECLASSIFICATION, PARKS, RECREATION, & LEISURE PLAN AMENDMENT, AND MAJOR SUBDIVISION APPLICATION NO.

TSM-25-002 (TRACT 4265)
Item 9.1
Mountain House Page 1228 of 1946 Area 1 is located west of Great Valley Parkway, north of Byron Road in Neighborhood I of Specific Plan II, near the western City limit line. The proposed Project consists of the following requests for Area 1:
• General Plan and Master Plan Amendments to change the land use designation of Area 1 from Recreation Commercial (C/R) and Community Park to Low and Medium Density Residential (R/L and R/M);
• Specific Plan II Amendment to modify the land use designation of Area 1 from Commercial Recreation (C-R) and Community Park to Medium Density Residential (R-M); • Zone Reclassification to rezone Area 1 from Recreation Commercial (C-R) and Community Park to Medium Density Residential (R-M)
• Major Tentative Subdivision Map (TSM-25-002) to subdivide approximately 8.54 net acres into 58 residential lots. Typical lot dimensions within the proposed Tentative Subdivision Map are 50’ x 120’ (6,000 SF lots) and all lots are proposed to front on “A Avenue” (currently under construction) The proposed new residential lots would back up to planned open space areas. • The R/M density range per the General Plan is between 6.1 and 10.0 dwelling units per acre. The proposed density for Area 1 / Tract 4265 is 6.8 dwelling units per net acre, which is consistent with the General Plan density range.

The proposed Major Tentative Subdivision Map for Tract 4265 is included as Attachment R.

2. AREA 2 – NEIGHBORHOOD I (APN: 258-26-003, -004, and -005) – AMENDMENTS TO GENERAL

PLAN, MASTER PLAN, SPECIFIC PLAN II, ZONE RECLASSIFICATION, PARKS, RECREATION & LEISURE PLAN AMENDMENT, AND MAJOR SUBDIVISION APPLICATION NO. TSM-25-003 (TRACT 4268)
Area 2 is located along the west side of Great Valley Parkway, north of Byron Road in Neighborhood I of Specific Plan II. Area 2 is located just north of the City’s Water Treatment Plant Expansion area at the northwest corner of Byron Road and Great Valley Parkway, and immediately east of the wetland/conservation areas along Dry Creek. The proposed Project consists of the following requests for Area 2:
• General Plan and Master Plan Amendments to change the land use designation of Area 2 from Recreation Commercial (C/R), Public (P/F), and Community Park to Low and Medium Density Residential (R/L and R/M);
• Specific Plan II Amendment to modify the Specific Plan land use designation of Area 2 from Commercial Recreation (C-R), Public Facilities (P-F), and Community Park to Low Density Residential (R-L);
• Zone Reclassification to rezone Area 2 from Recreation Commercial (C-R) and Public Facilities (PF) to Low Density Residential (R-L); • Major Tentative Subdivision Map (TSM-25-003) to subdivide approximately 17.12 net acres into 82 single-family residential lots. Typical lot dimensions are 50 feet by 100 feet (5,000 square feet).

Access would be provided by an interior roadway connecting to Great Valley Parkway. A sevenItem 9.1 Mountain House Page 1229 of 1946 foot-tall Community Wall is proposed along Great Valley Parkway and along the rear of lots nearest to the Water Treatment Plant Expansion area; and • The R/L density range under the General Plan is 2.1 to 8.0 dwelling units per acre. The proposed density for Area 2/Tract 4268 is 4.8 dwelling units per net acre, which is consistent with the General Plan density range.

The proposed Major Tentative Subdivision Map for Tract 4268 is attached to this Staff Report as Attachment S.

3. AREA 3 – NEIGHBORHOOD J (APN: 258-03-060 and -061) – AMENDMENTS TO GENERAL PLAN,

MASTER PLAN, SPECIFIC PLAN II, ZONE RECLASSIFICATION, PARKS, RECREATION, & LEISURE PLAN AMENDMENT, AND MAJOR SUBDIVISION APPLICATION NO. TSM-25-005 (TRACT 4270) Area 3 is located along Central Parkway, north of Byron Road in Neighborhood J of Specific Plan II and is divided by Kirpa Way. The proposed Project consists of the following requests for Area 3:
• General Plan and Master Plan Amendments to change the land use designation of Area 3 from Recreation Commercial (C/R) to Low and Medium Density Residential (R/L and R/M) and Commercial Neighborhood (C/N).
• Specific Plan II Amendment to modify the Specific Plan land use designation from Commercial Recreation (C-R) to Medium Density Residential (R-M) and Neighborhood Commercial (C-N). • Zone Reclassification to rezone Area 3 from Recreation Commercial (C-R) to Medium Density Residential (R-M) and Neighborhood Commercial (C-N).
• Major Tentative Subdivision Map (TSM-25-005) to subdivide approximately 2.47 net acres into 15 residential lots, plus one neighborhood commercial parcel approximately 1.65 acres in size.

Typical lot dimensions are 45 feet by 100 feet (4,500 square feet). Access would be provided by an interior roadway from Central Parkway to Kirpa Way. The Neighborhood Commercial parcel would have frontage along Central Parkway and Kirpa Way. Residential units would front Central Parkway, with garage access provided from the interior roadway. • The R/M density range under the General Plan is 6.1 to 10.0 dwelling units per acre. The proposed density for Area 3/Tract 4270 is 6.1 dwelling units per net acre, which is consistent with the General Plan density range.

The proposed Major Tentative Subdivision Map for Tract 4270 is attached to this Staff Report as Attachment T.

4. AREA 4 – NEIGHBORHOOD K (APN: 258-04-005, and -028) – AMENDMENTS TO GENERAL PLAN,

MASTER PLAN, SPECIFIC PLAN II, ZONE RECLASSIFICATION, AND MAJOR SUBDIVISION APPLICATION NO. TSM-25-006 (TRACT 3935)
Area 4 is located at the northeast corner of Central Parkway and Stockyard Drive in Neighborhood K of Specific Plan II, north of the Fire Station. The proposed Project consists of the following requests for Area 4:

Item 9.1
Mountain House Page 1230 of 1946 • General Plan and Master Plan Amendment to change the Land Use Designation of Area 4 from Community Commercial (C/C) to Low & Medium Density Residential (R/L & R/M). • Specific Plan II Amendment to modify the Specific Plan Land Use Designation from Community Commercial (C-C) to Medium Density Residential (R-M).
• Zone Reclassification to rezone Area 4 from Community Commercial (C-C) to Medium Density Residential (R-M).
• Major Tentative Subdivision Map (TSM-25-006) to subdivide approximately 9.72 net acres into 63 residential lots. Typical lot dimensions are 45 feet by 85 feet (3,825 square feet). Access would be provided from Stockyard Road and the future extension of Moana Avenue. • The R/M density range under the General Plan is 6.1 to 10.0 dwelling units per acre. The proposed density for Area 4/Tract 3935 is 6.5 dwelling units per net acre, which is consistent with the General Plan density range.

The proposed Major Tentative Subdivision Map for Tract 3935 is attached to this Staff Report as Attachment U.

5. AREA 5 – NEIGHBORHOOD K (APN: 258-040-25) – AMENDMENTS TO GENERAL PLAN, MASTER

PLAN, SPECIFIC PLAN II, ZONE RECLASSIFICATION, PARKS, RECREATION & LEISURE PLAN AMENDMENT.

Area 5 is located along Central Parkway in Neighborhood K within the Specific Plan II area and surrounds Fire Station No. 2 on three sides. Although there is no proposed Tentative Subdivision Map for Area 5, the proposed Project consists of the following requested actions:
• General Plan and Master Plan Amendment to change the Land Use Designation of Area 5 from Public (P/F) to Low Density & Medium Density Residential (R/L & R/M). • Specific Plan II Amendment to modify the Specific Plan Land Use Designation from Public (P-F) to Medium Density Residential (R-M).
• Zone Reclassification to rezone Area 5 from Public Facilities (P-F) to Medium Density Residential (R-M).

The Parks, Recreation and Leisure Plan currently identifies Area 5 as one of eight designated Trail Staging Areas supporting the Mountain House Creek and Old River Regional Park trail systems.

Approval of the proposed land use amendments would necessitate relocation of the Trail Staging Area planned along Mountain House Creek to a location farther north at the confluence of Old River and the planned Old River Regional Park. As part of any future implementation, the relocated staging area and associated park improvements would require further planning and refinement.

Staff requested that the applicant submit a conceptual design for Area 5 to assist in determining whether future residential development could reasonably be accommodated on the site. The conceptual design is for planning purposes only and is not a Tentative Subdivision Map or proposed for approval as part of the current Project. Staff has identified several planning considerations that would require additional evaluation as part of any future Tentative Subdivision Map entitlement process, including:

Item 9.1
Mountain House Page 1231 of 1946 • Access to the parcel from Stockyard Drive and the availability of a single point of access, particularly for emergency vehicles.
• Proximity to Fire Station No. 2 and potential noise impacts on future residences. • The Mountain House Master Plan includes Implementation Measure M, Staging Areas (Page 7.16), which requires two staging areas within the portion of the Mountain House Creek corridor between Great Valley Parkway on the southwest and Byron Road on the northeast. The proposed Project would relocate the “Northern MH Creek Staging Area” farther north along Old River Regional Park. A conceptual drawing of the combined staging area is presented below. • Consideration of public parking within any future subdivision design to provide access to Mountain House Creek. These parking spaces would be dedicated for public trail access and maintained by the project’s Homeowners Association (HOA). • Any future subdivision of Area 5 would be required to adhere to City standards, including, but not limited to, street widths, guest parking, and emergency access. • Conversion of land currently designated for public facilities.

The Conceptual Site Plan for Area 5 is attached to this Staff Report as Attachment V.

6. AREA 6 – NEIGHBORHOOD L (APN: Portions of 209-040-23 and 258-040-33) – AMENDMENTS TO

GENERAL PLAN, MASTER PLAN, SPECIFIC PLAN II, ZONE RECLASSIFICATION, PARKS, RECREATION & LEISURE PLAN AMENDMENT.

Area 6 is located along the east side of Central Parkway, immediately north of Byron Road and the railroad right-of-way, in Neighborhood L within the Specific Plan II area. Area 6 consists of portions of two parcels that also include the Mountain House Creek corridor between Byron Road and Old River. Although there is no proposed Tentative Subdivision Map associated with Area 6, the proposed Project consists of the following requests:

Item 9.1
Mountain House Page 1232 of 1946 • General Plan and Master Plan Amendments to change the land use designation of Area 6 from Public (P/F) to Low and Medium Density Residential (R/L and R/M). • Specific Plan II Amendment to modify the Specific Plan land use designation from Public (P-F) to Low Density Residential (R-L).
• Zone Reclassification to rezone Area 6 from Public Facilities (P-F) to Low Density Residential (R-L).

As noted above, Area 6 is designated as Public Facilities (P/F) and was originally planned as the North Community Park site under Specific Plan II. The North Community Park was located to a more centrally accessible location in a prior land use approval. The proposed amendments would modify the General Plan, Specific Plan II, and Zoning Map to allow for potential future subdivision and low-density residential development in this area.

Access to Area 6 is contemplated from Central Parkway to the west, as well as through a potential new Mountain House Creek crossing to the east near the existing Water Quality Basin. Final design options for access to the property from the east have not been fully evaluated at this time.

Staff requested a conceptual subdivision layout to assist in evaluating whether future residential development could reasonably be accommodated on the site. The conceptual layout is for planning purposes only and is not a Tentative Subdivision Map or proposed for approval as part of the current Project. Based on its review, staff identified several planning considerations that would require additional evaluation as part of any future Tentative Subdivision Map entitlement process, including:
• Development of permanent access from Central Parkway. • Feasibility and design of new combined pedestrian and vehicular crossing over Mountain House Creek. This new planned crossing would be mid-block, between Byron Road and the planned creek crossing of Toda Mal Drive’s extension of Mountain House Parkway north of Byron Road.

Figure 7.6, SPII Mountain House Creek Park
• Compatibility with the surrounding open space and Mountain House Creek corridor.

The Conceptual Site Plan for Area 6 is attached to this Staff Report as Attachment W.

Summary of Major Subdivision Maps
Area Acreage (Net) Number of Lots Density (Net)
Area 1 (Tract 4265) – TSM-25-002 8.54 58 6.8 du/ac
Area 2 (Tract 4268) – TSM-25-003 17.12 82 4.8 du/ac
Area 3 (Tract 4270) – TSM-25-005 2.47 15 6.1 du/ac
Area 4 (Tract 3935) – TSM-25-006 9.72 63 6.5 du/ac
Sub-Total 37.85 218
Area 5* 4.8 33 6.9 du/ac
Item 9.1
Mountain House Page 1233 of 1946 Area 6* 22.3 86 3.9 du/ac
Total 64.95 337
*These lot counts are based on conceptual lotting plans.

Amendments to the Master Plan and Specific Plan II
The proposed Project requires amendments to the text, tables, and figures of the Master Plan and Specific Plan II to reflect the proposed land use designation changes. The proposed amendments include the following:

Master Plan
• Update the text to remove references to “Village Centers” from Section 3.1.2, Overall Concepts; clarify school facilities objectives and adjacent parkland in Neighborhood J; and update Community Park policy regarding the location of the Community Park in Specific Plan II, which would be located centrally within the community.
• Update tables to reflect the proposed land use designation amendments, including Land Use Summary Tables, Student Generation, Recreation and Open Space acreages, and Water and Sewer Demand Tables.
• Update figures throughout the Master Plan to reflect the proposed land use designation amendments, including Master Plan Designations, Landscape Concept, Recreation and Open Space, Bicycle and Pedestrian Network, and Transit Routes and Facilities.

Specific Plan II
• Update the text to remove references to “Village Centers” from the Neighborhood Design Section and Master Plan Summary.
• Update tables to reflect the proposed land use designation amendments, including the Land Use Summary Table, Neighborhood Land Use Table, and Minimum/Maximum and Expected Residential Units by Neighborhood Table.
• Update figures throughout Specific Plan II to reflect the proposed land use designation amendments, including Master Plan Designations, Specific Plan II Land Use/Zoning, Neighborhood Land Use, Neighborhood L Community Commercial, and SPII Transit System figures.

The proposed amendments to the Master Plan and Specific Plan II are attached to this Staff Report as Attachments O and P, respectively.

Amendments to Parks, Recreation, and Leisure Plan
The Parks, Recreation, and Leisure Plan was adopted by the Mountain House Community Services District (MHCSD) Board in 2021 and carried forward by the City upon incorporation in July 2024.

The purpose of the Parks, Recreation, and Leisure Plan is to “refine the vision for parks and recreation and update its plan and guidelines for the park system.” The most significant proposed amendment involves Item 9.1
Mountain House Page 1234 of 1946 reconfiguring portions of the planned Greenway Loop Park to accommodate new residential development while maintaining the overall recreational function and connectivity of the loop park system.

The 2021 Parks, Recreation, and Leisure Plan envisions the Greenway Loop Park as a continuous open space and trail network supporting recreation, fitness, and community connectivity. Under the proposed project, portions of the planned park would be reconfigured, reducing designated Loop Park acreage from 148.3 acres to 126.7 acres (approximately 21.6 acres). In addition, the average width of the Greenway Loop Park would decrease from approximately 250 feet to 230 feet in certain locations. The preliminary plans for the Greenway Loop Park are attached to this Staff Report as Attachment X and Y. It is important to note that the Greenway Loop Park plans submitted as part of this application are preliminary in nature and the action by City Council does not “approve” the design. Final design of the Greenway Loop Park and Neighborhood Park(s) will be submitted to the City for review and approval at a later date.

The proposed Parks, Recreation, and Leisure Plan amendments include the following:
• Revise the park acreage for Old River Regional Park and Creek Park to be consistent with the Master Plan and Specific Plan II.
• Revise the park acreage for Greenway Loop Park to reflect the proposed land use changes and maintain consistency with the Master Plan and Specific Plan II. • Update Figures 1 and 2 to reflect revised land use designations, trail alignments, open space configurations, and the proposed relocation of the Trail Staging Area associated with Area 5.

The proposed amendments to the Parks, Recreation, and Leisure Plan are attached to this Staff Report as Attachment Q.

Residential Density Redistribution
One of the primary policy questions raised by the proposed Project is whether the additional residential lots would increase the City's overall residential capacity. The proposed Project does not increase the communitywide dwelling unit limit. The Mountain House Master Plan establishes a maximum of 16,105 dwelling units communitywide, and the proposed Project maintains compliance with that limit by redistributing anticipated residential density within Specific Plan II rather than increasing the total number of dwelling units.

Master Plan Policy 3.3.1 requires amendments to a Specific Plan to demonstrate consistency with the communitywide dwelling unit limit. To accomplish this, the applicant proposes to redistribute anticipated residential density from designated Medium High Density Residential (R-MH) areas within Neighborhoods I, K, and the Town Center. Specifically, the assumed density for most R-MH sites would be reduced from

14.0 dwelling units per acre to 10.7 dwelling units per acre, creating capacity for the additional residential lots proposed elsewhere within Specific Plan II while preserving the overall Master Plan dwelling unit cap.

Item 9.1
Mountain House Page 1235 of 1946 The active adult R-MH sites in Neighborhood K would continue to assume a residential density of 12 dwelling units per acre, consistent with prior planning assumptions and representations made to the Lammersville Unified School District.

The applicant submitted revised Master Plan and Specific Plan II tables documenting the proposed density redistribution and updated neighborhood dwelling unit counts. Staff reviewed the revised planning assumptions and determined that the proposed amendments remain consistent with Master Plan Policy

3.3.1 and the established communitywide dwelling unit limit.

Commercial Acreage
As noted above, Area 4 includes the proposed conversion of 9.72 net acres designated for Community Commercial uses to Medium Density Residential uses at the northeast corner of Central Parkway and Stockyard Drive in Neighborhood K. This represents a change from the land use program established in the Mountain House Master Plan and Specific Plan II, which envisioned a self-sustaining community supported by commercial and retail centers. Specifically, the Master Plan identified three village commercial areas, each approximately 20 acres in size, intended to provide community-serving commercial uses and services.

Since adoption of the Master Plan, retail patterns have changed significantly, including increased use of e-commerce, delivery services, and other alternatives to traditional brick-and-mortar retail. Although the proposed Project would reduce land designated for Community Commercial uses by 9.72 net acres, the City would continue to retain more than 200 acres of commercially designated land to accommodate future retail, office, and employment-generating uses.

In addition, in 2024, the City approved the conversion of approximately 6.5 acres from Industrial to Community Commercial at the northeast corner of Byron Road and the planned extension of Mountain House Parkway north of Byron Road. The City's remaining commercial areas are generally located along major transportation corridors, including Grant Line Road, Mountain House Parkway, and Byron Road, where they are positioned to serve existing and future residents.

Projected Student Enrollment
Although the proposed project remains consistent with the Master Plan's overall dwelling unit cap, the proposed redistribution of residential density is projected to increase student generation compared to the assumptions currently reflected in the Master Plan. Based on staff's review of the applicant's proposed land use changes and application of the student generation rates established in the Master Plan, buildout of Specific Plan II is projected to generate approximately 79 additional kindergartens through eighth grade students and 43 additional high school students beyond the existing Master Plan assumptions.

Chapter 5, Education, Child Care, and Library Services, of the Mountain House Master Plan establishes the policies and planning assumptions used to coordinate residential development with school facilities.

Student generation under the Master Plan is based on residential land use designations and the associated student generation rates for each housing type, rather than the total number of dwelling units alone.

Item 9.1
Mountain House Page 1236 of 1946 Consequently, changes in residential density assumptions can affect projected school enrollment even when the overall dwelling unit cap remains unchanged.

For context, the Existing Conditions Report prepared for the City's General Plan Update (March 2026) indicates that schools serving Mountain House enrolled approximately 7,949 students during the 2024- 25 school year, including approximately 5,521 students in kindergarten through eighth grade and 2,428 students in grades nine through twelve. Table 5.1 of the Mountain House Master Plan establishes the student generation rates used to estimate projected school enrollment at community buildout. The table is provided below for reference.

The increase in projected student generation results from the proposed redistribution of residential density within Specific Plan II. While the proposal maintains compliance with Master Plan Policy 3.3.1 by preserving the overall dwelling unit cap, it shifts anticipated residential development from Medium High Density Residential (R-MH) land to Low Density Residential (R-L) and Medium Density Residential (R-M) land uses. Under the Master Plan's adopted student generation methodology, lower-density residential land uses generate more students per dwelling unit than Medium High Density Residential land uses.

Accordingly, the proposed redistribution increases projected student enrollment even though the total number of dwelling units remains unchanged.

The following tables compare the existing Specific Plan II residential assumptions with the applicant's proposed amendments and illustrate the resulting changes in projected student generation.

Existing Specific Plan II Student Generation
Item 9.1
Mountain House Page 1237 of 1946 Proposed Specific Plan II Student Generation
The projected increase in student generation reflects the planning assumptions established by the Mountain House Master Plan for long-range land use planning. This analysis is intended to evaluate consistency with the Master Plan and inform the City's consideration of the proposed land use amendments. Questions regarding school facility capacity, future enrollment, school funding, and implementation of school mitigation requirements remain within the jurisdiction of the Lammersville Unified School District and will continue to be evaluated through applicable development review processes.

Lammersville Unified School District (LUSD) was consulted during the project review period for this project and has submitted comments which may be found in Attachment Z. The initial comments dated March 18, 2026 were based on a much larger student generation rate. After further review, it was determined that the student generation rate was significantly lower than the original estimate and there was additional correspondence on March 23, 2026. As of August 21, 2026 LUSD has not taken a stance opposing or supporting the project.

Utilities
Water
Item 9.1
Mountain House Page 1238 of 1946 The City’s current water supply is purchased from the Byron Bethany Irrigation District (BBID). BBID’s primary source of supply is the State Water Project (SWP), which diverts surface water from the Sacramento-San Joaquin Delta. The City’s Water Treatment Plant (WTP) treats the water to meet State requirements before it is distributed through the City’s water system, including water mains and storage facilities.

The proposed Project would install water utility connections within each subdivision and connect to existing City infrastructure located within adjacent roadways. CBG Engineers evaluated the impacts of the proposed Project on water system capacity and determined that the Project would result in a net increase of 29,770 gallons per day in domestic water demand and 31,259 gallons per day in water storage demand. The analysis concluded that the City’s existing and planned water infrastructure can accommodate the projected increase in demand associated with the proposed Project.

Water infrastructure serving the proposed subdivisions will be required to be designed and constructed in accordance with City standards. The Project is also conditioned to participate in the City’s Water Treatment Plant expansion.

Sewer
The City’s wastewater system includes collection, treatment, and disposal facilities. Approximately 80% of the service area drains by gravity through the backbone collection system to the Wastewater Treatment Plant (WWTP), while the remaining areas are or will be served by lift stations and force mains as development occurs. At buildout, the WWTP is planned for a capacity of 5.4 million gallons per day (MGD), with expansion occurring as development triggers additional capacity needs consistent with the Master Plan.

Development of each proposed Major Tentative Subdivision Map will require installation of in-tract sewer lines connecting to existing sewer infrastructure in A Avenue, Great Valley Parkway, and Central Parkway.

CBG Engineers evaluated the impacts of the proposed land use changes on sewer capacity and concluded that the proposed amendments would result in a net decrease of 54,745 gallons per day in projected wastewater demand, primarily because the commercial uses currently planned for portions of the Project area have higher estimated wastewater demand than the proposed residential uses.

Drainage
The Mountain House Master Plan establishes objectives, policies, and implementation measures for the City’s storm drainage system, including watershed drainage, primary and secondary storm drain facilities, Mountain House Creek, Best Management Practice (BMP) treatment, flood protection, and phasing of storm drainage improvements. Chapter 15, Storm Drainage and Flood Protection, of Specific Plan II further identifies the improvements necessary to implement these Master Plan requirements.

Pursuant to Specific Plan II, runoff from Neighborhoods I and J is routed through the Greenway Loop Park BMP system before ultimately reaching the lake/BMP system in Neighborhood K. Runoff from Neighborhood I is routed through the Greenway Loop Park BMPs to a detention basin near the terminus of Dry Creek, with flows exceeding basin capacity conveyed to the Neighborhood K lake/BMP system.

Item 9.1
Mountain House Page 1239 of 1946 Runoff from Neighborhood J is routed through the Greenway Loop Park BMPs and discharged to the Neighborhood K lake/BMP system.

The proposed Project will be required to design and construct storm drainage improvements in accordance with the City’s applicable storm drainage standards and requirements.

Traffic Generation
A Traffic Memorandum prepared by TJKM, dated August 20, 2026 (Attachment K), evaluates the proposed Project and associated land use changes. TJKM estimated trip generation using rates from the ITE Trip Generation Manual (11th Edition). Table 4 of the Traffic Memorandum compares estimated trip generation under the existing approved land use designations with the proposed land use designations.

The existing Land Use Designations include Commercial Recreation, Community Commercial, and Public Facility and the proposed Land Use Designations include Low Density Residential and Medium Density Residential.

As shown in the TJKM Traffic Memorandum, the proposed residential land uses are anticipated to generate 4,352 average daily trips (ADT), including 323 AM peak-hour trips and 428 PM peak-hour trips.

By comparison, the existing approved land use designations are estimated to generate 11,696 ADT.

Accordingly, the proposed Project is calculated to result in a net decrease of 7,344 ADT.

The reduction is attributable to the higher trip generation rates associated with the existing Commercial Recreation, Community Commercial, and Public Facilities land use designations compared with the proposed residential land uses, based on the ITE Trip Generation Manual (11th Edition).

Public Land Equity Program (PLEP)
Under the Public Land Equity Program (PLEP), each discretionary application is required to provide its fair share of public lands within the Mountain House community, equal to 21.2% of the mapped area.

If a parcel has a Public Land Deficit, the landowner is required to satisfy the deficit through one or more of the following methods:

1. Dedicating Public Land which is not on the subject parcel, but which is within the Mountain House Community to the Applicable Public Agency, sufficient in acreage to meet said Public Land Deficit;

2. Transferring fee title ownership of Private Land which is not needed for public facilities or services, but which is within the Mountain House Community to MHCSD sufficient in acreage to meet said Public Land Deficit.

3. Submitting land vouchers to the MHCSD, sufficient in acreage to meet said Public Land Deficit. (Mountain House Development Title, Division 12, Infrastructure and Services Financing, Chapter 3, Public Land Equity Program, and Division 1, General Provisions, Chapter, 3, Definitions, Section Item 9.1
Mountain House Page 1240 of 1946 9-1-304, Definitions for “Public Land Deficit”, “Applicable Public Agency”, “Private Land”, and “land voucher”.); and/or

4. Using any combination of the actions specified in (1) through (3).

As a Condition of Approval for each proposed Major Tentative Subdivision Map, the Project applicant shall meet the PLEP requirement. MHD is aware of this Condition of Approval and will meet the PLEP requirement prior to approval of each Final Map.

Consistency with Adopted Plans
Section 9-8-203.1 (General Plan Amendments), Section 9-8-303.1 (Master Plans), Section 9-8-503.1 (Specific Plans), and Section 9-8-703.1 (Zone Reclassifications) require specific studies associated with any change to the General Plan, Master Plan or associated Specific Plans.

Specifically, each of the cited Chapters states that prior to taking action on an application for a General Plan, Master Plan and/or a Specific Plan Amendment “the impact of the proposed Amendments on the jobs/housing program and on housing affordability shall be determined. In addition, the consistency with the policies of the Public Financing Plan shall be analyzed and the potential impact of the proposed Amendments on the financial and fiscal resources of the community and the City shall be determined.” Pursuant to those sections of the Development Title, staff reviewed the impact of the proposed amendments to the General Plan, the Mountain House Master Plan, and Specific Plan II documents, to determine the impact of each on the jobs/housing program and on housing affordability. Staff also reviewed the proposed amendments for consistency with the policies of the Public Financing Plan and financial and fiscal resources of the City. Staff found the following:

1. Based on the evidence supplied in this Staff Report, the proposed Amendments are supportive of the Mountain House Master Plan policies and Specific Plan II provisions regarding the development proposed;

2. The proposal does not adversely affect planned employment for the City of Mountain House;

3. The proposed project does not represent a significant change in jobs that are expected and does not adversely affect the number of jobs projected or the jobs/housing ratios anticipated for the community.

4. The proposal conforms to the applicable provisions of the Mountain House Design Manuals as amended, including provisions concerning standards for the site planning. Future residential units are required to adhere to applicable provisions of the Mountain House Design Manuals, including but not limited to landscape design and architectural styles;

5. The proposal does not increase the demand for public services; and

6. The proposal does not suggest amendments to the Jobs/Housing Program or Affordable Housing Programs.

Summary of Findings
Item 9.1
Mountain House Page 1241 of 1946 In order to approve the Project, the City Council must make several Findings in the affirmative for each application, pursuant to Mountain House Development Title 9-8-204 (General Plan Amendments), 9-8- 304 (Master Plan Amendments), 9-8-504 (Specific Plan II Amendments), 9-8-704 (Zone Reclassifications), and 9-8-1904 (Major Subdivision Maps). These Findings are relatively the same for each application and require that the project:

A. Maintain consistency with the applicable plans (General Plan, Master Plan, Specific Plans, Public Financing Plan, and Development Agreement);
B. Is reasonable and beneficial at the time;
C. Does not affect the Jobs/Housing Program and housing affordability; D. Shall not adversely affect the Public Financing Plan; and E. Meets all applicable provisions of the Mountain House Development Title.

Findings for each application are prepared for City Council consideration and are attached to this Staff Report as Attachments B through J.

Conditions of Approval
Staff prepared proposed Consolidated Conditions of Approval for each of the four Major Tentative Subdivision Map applications (TSM-25-002, TSM-25-003, TSM-25-005, and TSM-25-006). The Conditions of Approval establish the requirements governing development of each project area and will be adopted as part of the approval of each respective Tentative Subdivision Map.

Following approval of the Tentative Subdivision Maps, the applicant may submit Final Maps in substantial conformance with the approved Tentative Subdivision Maps. Applicable Conditions of Approval must be satisfied at the specified stages of development, including prior to Final Map approval, issuance of grading permits, approval of improvement plans, and issuance of building permits.

The Consolidated Conditions of Approval are organized by responsible department or division and by the applicable stage of development. The Conditions of Approval for each Tentative Subdivision Map are incorporated into the respective resolutions included as Attachments G through J.

The City also routed the proposed Project to applicable external agencies for review in March 2026.

Comments received from those agencies are included as Attachment Z.

Public Hearing Notice
A Notice of Public Hearing was published in the Tracy Press on July 31, 2026. On August 6, 2026, staff mailed the public hearing notice to property owners within a 500-foot radius of the Project boundary. The applicant also posted a Notice of Development Permit Application at each Project site on July 25, 2026, pursuant to Section 9-2-508 of the Mountain House Development Title. In addition, the public hearing notice was emailed to the City's Public Hearing subscribers and interested parties and posted at three locations accessible to the public.

Item 9.1
Mountain House Page 1242 of 1946 Project materials, including the Project Description and Tentative Subdivision Maps, are available on the City's Active Projects webpage at https://www.mountainhouseca.gov/388/Active-Projects. The majority of these materials have been publicly available since March 2025 and have been updated by City staff throughout the City's review of the proposed Project.

FISCAL IMPACT
There is no specific fiscal impact associated with the processing of the proposed Project. Staff costs are paid by the applicant via a Deposit Reimbursement Agreement (DRA).

STRATEGIC PLAN
The proposed Project supports the City’s Strategic Plan, adopted April 9, 2025, by advancing implementation of the Master Plan, supporting housing opportunities, and promoting thoughtful growth and development consistent with the City’s long-term land use vision.

CEQA
An Addendum to the 1994 Mountain House Master Plan Final Environmental Impact Report (1994 MEIR), prepared by ICF, dated August 2026 was prepared for the proposed Project and in compliance with the California Environmental Quality Act (CEQA).

The purpose and scope of the Addendum is to 1) describe the project; 2) evaluate the potential environmental impacts of the change in land use; and 3) determine whether there are significant new impacts not previously addressed in the 1994 MEIR or whether significant impacts previously identified in the 1994 MEIR would be substantially increased.

The Addendum to the 1994 Mountain House Master Plan FEIR found no new significant environmental effects, no substantial increases in the severity of previously identified environmental effects, and no new information of substantial importance that would require major changes to the 1994 Mountain House Master Plan FEIR pursuant to CEQA Guidelines Section 15162(a).

ACTION FOLLOWING CITY COUNCIL APPROVAL
The Community Development Department, Planning Division will update the published City General Plan, Mountain House Master Plan, Mountain House Specific Plan II, the City Zoning Maps and the Parks, Recreation and Leisure Plan as well as update the policy versions on the City’s website. The Planning Division will also file a Notice of Determination (NOD) with the San Joaquin County Clerk-Recorder and the State of California Office of Land Use and Climate Innovation (LCI).

Item 9.1
Mountain House Page 1243 of 1946

ATTACHMENTS
A. Resolution Approving the Addendum to the Mountain House EIR dated August 2026.

B. Resolution Approving General Plan Amendment No. GPA-25-002 including the Certain Findings and the amendment General Plan Map Exhibit
C. Resolution Approving the Mountain House Master Plan Amendment No. MPA-25-002 including the Certain Findings and the suggested amendments to the Mountain House Master Plan D. Resolution Approving the Mountain House Specific Plan II Amendment No. SPA-25-002 including Certain Findings and the suggested amendments to Mountain House Specific Plan II E. Introduction of an Ordinance for Zoning Reclassification including the Certain Findings and the suggested Zoning Exhibit
F. Resolution Approving the Parks, Recreation, and Leisure Plan Amendment including the suggested amendments to the Parks, Recreation, and Leisure Plan G. Resolution Approving Major Subdivision Application No. TSM-25-002 (Tract 4265) (NBHD I) including the Certain Findings, Vesting Tentative Subdivision Map and Conditions of Approval H. Resolution Approving Major Subdivision Application No. TSM-25-003 (Tract 4268) (NBHD I) including the Certain Findings, Vesting Tentative Subdivision Map and Conditions of Approval I. Resolution Approving Major Subdivision Application No. TSM-25-005 (Tract 4270) (NBHD J) including the Certain Findings, Vesting Tentative Subdivision Map and Conditions of Approval J. Resolution Approving Major Subdivision Application No. TSM-25-006 (Tract 3935) (NBHD K) including the Certain Findings, Vesting Tentative Subdivision Map and Conditions of Approval K. CEQA Addendum prepared by ICF dated August 2026, including the Environmental Noise Assessment, dated June 23, 2026, and Traffic Technical Memorandum, dated August 20, 2026 L. Location Map
M. General Plan Land Use Exhibits
N. Zone Reclassification Exhibits
O. Proposed changes to the Mountain House Master Plan Text, Tables and Figures P. Proposed changes to the Mountain House Specific Plan II Text, Tables and Figures Q. Proposed changes to the Mountain House Parks, Recreation and Leisure Plan, dated May 2021 R. Vesting Tentative Subdivision Map No. TSM-25-002 (Tract 4265) (NBHD I) S. Vesting Tentative Subdivision Map No. TSM-25-003 (Tract 4268) (NBHD I) T. Vesting Tentative Subdivision Map No. TSM-25-005 (Tract 4270) (NBHD J) U. Vesting Tentative Subdivision Map No. TSM-25-006 (Tract 3935) (NBHD K) V. Area 5 Conceptual Site Plan
W. Area 6 Conceptual Site Plan
X. Conceptual Neighborhood I Greenway Loop Park and Dry Creek Schematic Y. Conceptual Neighborhood J Greenway Loop Park Preliminary Landscape Plan Z. Agency Referral Responses

Item 9.1
Mountain House Page 1244 of 1946

ATTACHMENT A
RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOUNTAIN HOUSE APPROVING AN

ADDENDUM TO THE MOUNTAIN HOUSE MASTER PLAN EIR PREPARED BY ICF AND DATED JULY 2026 FOR GENERAL PLAN AMENDMENT GPA-25-002, MASTER PLAN AMENDMENT NO. MPA-25-002, SPECIFIC PLAN AMENDMENT NO. SPA-25-002, ZONE RECLASSIFICATION NO. ZR-25-001, PARKS, RECREATION AND LEISURE PLAN AMENDMENT, AND MAJOR SUBDIVISION APPLICATION NOS. TSM-25-002 (TRACT NO. 4265), TSM-25-003 (TRACT NO. 4268), TSM-25-005 (TRACT NO. 4270), AND TSM-25-006 (TRACT NO. 3835) WHEREAS, San Joaquin County adopted the Mountain House Master Plan on November 10, 1994, per Resolution No. 94-690 (“Master Plan”) as the authoritative land use document guiding the development and buildout of the Mountain House Community Services District; and WHEREAS, the City of Mountain House incorporated July 1, 2024; and WHEREAS, the City of Mountain House City Council adopted the San Joaquin County General Plan as the Interim City of Mountain House General Plan, the Mountain House Master Plan, Mountain House Specific Plans I, II, and II, and the Commercial, Office & Industrial, Multi-Family Development, and Single Family Residential Design Manuals on July 1, 2024 via City Council Resolution No. 2024-16; and WHEREAS, the Project includes General Plan Amendment No. GPA-25-002, Master Plan Amendment No. MPA-25-002, Specific Plan Amendment No. SPA-25-002, Zone Reclassification No. ZR-25- 001, Parks, Recreation, and Leisure Plan Amendment, and Major Subdivision Application Nos. TSM-25- 002 (Tract No. 4265), TSM-25-003 (Tract No. 4268), TSM-25-005 (Tract No. 4270), and TSM-25-006 (Tract No. 3835); and
WHEREAS, the Mountain House Master Plan Environmental Impact Report (EIR) (State Clearing House No. 1990020776) was certified in 1994 by the San Joaquin County Board of Supervisors; and WHEREAS, the City pursuant to CEQA Guidelines Section 15164 determined that an Addendum to the Mountain House Master Plan EIR was the appropriate document to evaluate the potential environmental effects of the proposed project; and
WHEREAS, the determination to prepare an Addendum was based on review of the proposed project that found no new significant environmental effects, no substantial increase in the severity of the previously identified environmental effects, and no new information of substantial importance that would require major changes to the proposed project pursuant to CEQA Guidelines Section 15162(a) and as a result, a Subsequent EIR is not warranted for the proposed project; and WHEREAS, on the basis of the whole record before the City Council, which is documented in the project files of the City of Mountain House Community Development Department, it was determined that although the proposed project could have a significant effect on the environment, the mitigation measures in the Mountain House Master Plan EIR will reduce these effects to a less than significant level; and
Item 9.1
Mountain House Page 1245 of 1946

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Mountain House City CouncilAugust 26, 2026

Mountain House City Council
August 26, 2026