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JOINT COMMUNITY FACILITIES AGREEMENT
THIS JOINT COMMUNITY FACILITIES AGREEMENT (the “Agreement”) is entered into effective as of the 1 st day of June, 2026, by and amo ng THE CITY OF MURRIETA, a general law city organized and existing under the laws and Constitution of the State of California (“City”), the WESTERN MUNICIPAL WATER DIST RICT, a public agency organized and existing pursuant to Division 20 of the California Water Code (“ WMWD”), and CENTURY COMMUNITIES OF CALIFORNIA, LLC, a Delaware limited liability company (“Developer”). This Agreement is being made in connection with and for the purpose of financing certain public facili ties to be owned, operated or maintained by WMWD from proceeds of bonds issued by Community Facilitie s District No. 2026-1 (Gierson Ranch) of the City (the “CFD”). Capitalized terms used in the Agreement that are not defined in this preamble or in the Recitals shall have the meanings given such terms in Section 2 of this Agreement.
R E C I T A L S:
A. The property depicted in Exhibit “A” he reto, which is located in the City of Murrieta, State of California, constitutes th e land within the boundaries of the CFD (the “Property”). The Property is described in Exhibit “B” hereto.
B. Developer intends to develop the Prope rty into approximately 107 dwelling units pursuant to Tract Map 39271 (“Project”).
C. The City is forming, or has formed, th e CFD for the purpose of financing, among other things, certain facilities to be owned, operated or mainta ined by the City as well as facilities to be owned a nd operated by WMWD (the “ WMWD Facilities”) in satisfaction of the payment of WMWD Fees (defined herein).
D. In conjunction with the i ssuance of building permits for the construction of homes on the Property and/or receipt of water meters for such homes, the Developer has elected to advance WMWD Facilities costs in satisfaction of payment of WMWD Fees (the “ Advances”) before CFD Proceeds are available in sufficient amounts to pay for WMWD Facilities. In such case, the Developer (i) shall be entitled to re imbursement of such Advances solely from CFD Proceeds allocated to WMWD by the City and (ii) shall be deemed to have satisfied WMWD Fees in the amount of such Advances which would otherwise be due to WMWD for WMWD Facilities, all as further described herein.
E. The City will have sole discretion and responsibility for the administration of the CFD.
F. The City is authorized by Section 53313.5 of the Act to assist in the financing of the acquisition and/or construction of the WMWD F acilities. This Agreement constitutes a joint community facilities agreement, within the meaning of Sec tion 53316.2 of the Act, by and among WMWD, the City (on behalf of itself and th e CFD) and the Developer, pursuant to which the CFD will be authorized to finance the acquis ition and/or construction of all or a portion of ‐2‐
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the WMWD Facilities. As authorized by S ection 53316.6 of the Act, responsibility for constructing, providing for and operating the WMWD Facilities is delegated to WMWD.
G. The Parties hereto find and determine that the residents residing within the boundaries of WMWD, the City and the CFD w ill be benefited by the construction and/or acquisition of the WMWD Facilities and that this Agreement is beneficial to the interests of such residents.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the Parties hereto agree as follows:
1. Recitals. Each of the above recitals is incorporated herein and is true and correct.
2. Definitions. Unless the context clearly ot herwise requires, the terms defined in this Section shall, for all purposes of this Agreement, have the meanings herein specified. a. “Act” means the Mello-Roos Community Facilities Act of 1982, Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code.
b. “Advances” means an amount paid by Developer for WMWD Facilities in satisfaction of payment of WMWD Fees prior to the availability of sufficient CFD Proceeds. c. “Agreement” means this Joint Community Facilities Agreement, dated as of June 1, 2026, by and among WMWD, the City (for itself and on behalf of the CFD), and the Developer.
d. “Bond Proceeds” shall mean those net funds generated by the sale of the Bonds and investment earnings thereon.
e. “Bond Resolution” means that Resolution, Resolution Supplement, Fiscal Agent Agreement, Indenture of Trust or other e quivalent document(s) providing for the issuance of the Bonds.
f. “Bonds” shall mean those bonds, or other securities, issued by, or on behalf of the CFD in one or more series, as authorized by the qualified electors within the CFD. g. “CFD” means Community Facilities District No. 2026-1 (Gierson Ranch) of the City of Murrieta.
h. “CFD Proceeds ” shall mean one or more of the following sources of funds: (i) Bond Proceeds; (ii) any prepayments of sp ecial taxes in the CFD that are to be applied to authorized facilities of the CFD, includi ng WMWD Facilities, pursuant to the Rate and Method; and (iii) the proceeds of special taxes levied to pay directly for WMWD Facilities. ‐3‐
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i. “Developer” means Century Communities of California, LLC, a Delaware limited liability company, and its successors and assigns. j. “Disbursement Request ” means a request for payment relating to WMWD Facilities in the form attached hereto as Exhibit “D.” k. “Other Facilities Accounts of the Improvement Fund ” means the funds, accounts or sub-accounts of the CFD (regardless of their designation within the Bond Resolution or otherwise) into which the CFD Pr oceeds may be deposited in accordance with the Bond Resolution to finance WMWD Facilities.
l. “Party” or “ Parties” shall mean anyone or all of the parties to this Agreement.
m. “Project” means the development by the Developer of approximately 107 residential units on the Property.
n. “Property” means the property that is contem plated to be in the CFD, as depicted in Exhibit “A” attached hereto and described in Exhibit “B” attached hereto. o. “Rate and Method” means the Rate and Method of Apportionment of the Special Tax for the CFD.
p. “Special Taxes ” means the special taxes aut horized to be levied and collected within the CFD pursuant to the Rate and Method. q. “State” means the State of California.
r. “WMWD” means the Western Municipal Water District, a public agency organized and existing pursuant to Division 20 of the California Water Code. s. “WMWD Facilities ” means those water and sewer facilities which are eligible to be funded with WMWD Fees.
t. “WMWD Fees ” means water capacity charge, meter fees, and sewer capacity fees and all components thereof imposed by WMWD upon the Property. u. “WMWD Representative ” means the WMWD General Manager or his designee.
3. Formation of the CFD. The City has form ed, or is in the processing of forming, the CFD to finance the WMWD Faci lities and other facilities. Th e Developer has requested that the City and WMWD enter into this Agreement in order to finance costs related to the WMWD Facilities.
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4. Use of CFD Proceeds. The City and the Developer shall, from time to time as CFD Proceeds become available, determine the amount of CFD Proceeds to be deposited in the Other Facilities Accounts of the Improvement Fund and each subaccount thereof.
5. Disbursements for WMWD Facilities.
a. Upon the funding of the Other Facil ities Accounts of the Improvement Fund, the City shall notify WMWD of the amount of CFD Proceeds to be reserved to fund WMWD Facilities and WMWD may execute and submit a Disbursement Request for payment to the City requesting disbursement of such amount from the Other Facili ties Accounts of the Improvement Fund to the extent such funds are av ailable in the Other Faci lities Accounts of the Improvement Fund. Upon WMWD's receipt of f unds pursuant to such Disbursement Request, Developer shall receive reimbursement of the Advances from WMWD to the extent of the amount of CFD Proceeds received for WMWD Facilities. Upon such notice and WMWD's receipt of such disbursement relating to WMWD Facilities, Developer shal l be deemed to have satisfied the applicable WMWD Fees with respect to the number of dwelling units or lots for which the WMWD Fees would otherwise have b een required in an amount equal to such disbursement.
b. From time to time following the funding of the Other Facilities Accounts of the Improvement Fund from additional CFD Proceeds, the Developer may notify WMWD in writing and WMWD may request a further disbursement from th e Other Facilities Accounts of the Improvement Fund to fund WMWD Faciliti es by submitting an executed Disbursement Request to the CFD. Upon receipt of such Disb ursement Request completed in accordance with the terms of this Agreement, the CFD shall wi re transfer or otherw ise pay to WMWD such requested funds to the extent that CFD Proceeds are available in the Other Facilities Accounts of the Improvement Fund for such purpose. Upon such notice and WMWD's receipt of such disbursement relating to WMWD Facilities, Developer shall be deemed to have satisfied the applicable WMWD Fees with respect to the nu mber of dwelling units or lots for which the WMWD Fees would otherwise have been required in an amount equal to such disbursement. c. WMWD agrees that prior to submitting a Disbursement Request requesting payment from the CFD it shall review and approve all costs included in its request and will have already paid or incurred such co sts of WMWD Facilities from its own funds subsequent to the date of this Agreement, or will disburse su ch amounts to pay the costs of WMWD Facilities following receipt of funds from the CFD. In the event that WMWD does not disburse any CFD Proceeds received by it to third pa rties within five banking days of receipt, it will trace and report to the CFD all earnings, if any, earned by WMWD, from the date of receipt of such CFD Proceeds by WMWD to the date of expenditure by WMWD for capital costs of the WMWD Facilities. Such report shall be delivere d at least semiannually until all CFD Proceeds are expended by WMWD. WMWD agr ees that in processing the above disbursements it will comply with all legal requirements for the ex penditure of CFD Proceeds under the Internal Revenue Code of 1986 and any amendments thereto.
d. WMWD agrees to maintain adequate internal controls over its payment function and to maintain accounting records in accordance with generally accepted accounting procedures. WMWD will, upon request, provide the City and/or Developer with access to WMWD's records related to the WMWD Faciliti es and will provide to the City its annual ‐5‐
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financial report certified by an independent certified public acc ountant for purposes of assisting the City in calculating the arbitrage rebate obligation of the CFD, if any. e. The City or the CFD agrees to main tain full and accurate records of all amounts, and investment earnings, if any, expende d from the Other Facilities Accounts of the Improvement Fund. The City or the CFD will, upon request, provide WMWD and/or Developer with access to the City’s or the CFD's records related to the Other Facilities Accounts of the Improvement Fund.
f. Nothing herein shall supersede the oblig ation of an owner of the Property to make an Advance or pay WMWD Fees to WM WD when due. The purpose of this Agreement is to provide a mechanism by which the CFD may issue the Bonds to provi de a source of funds to finance WMWD Facilities in satisfaction of the payment of WMWD Fees. In the event that CFD Proceeds, including investment earnings ther eon, are not available or sufficient to satisfy the obligation, then the Developer shall remain obligated to make an Advance or pay WMWD Fees to WMWD as a condition of receiving water service to the Property.
6. Ownership of WMWD Facilities. At all times, the WMWD Facilities shall be and remain the property of WMWD.
7. Tax Matters. WMWD shall not use B ond Proceeds in any manner that would cause interest on the Bonds to become includab le in gross income for federal income tax purposes. WMWD represents the following with respect to the use of the Bond Proceeds:
a. Private Use. The Bond Proceeds will not be used for any activities that constitute a “Private Use,” meaning any activity that constitutes a trade or business that is carried on by persons or entities, other than governme ntal entities. The l easing of the facilities ꞏ or the access of a person or entity other than a government al unit to property or services on a basis other than as a member of the general public (“ General Public Use ”) shall constitute a Private Use unless WMWD obtains an opinion of bond counsel to the contrary. Use of the Bond Proceeds in a trade or business constitutes General Public Use only if the property is intended to be available and is in fact r easonably available for use on the sa me basis by natural persons not engaged in a trade or business.
b. Management and Service Contracts. The WMWD facilities financed with the Bond Proceeds shall not be subject to management contracts or other arrangements with private parties except in compliance with Internal Revenue Service Revenue Procedure 97-13. c. Expenditure of Bond Proceeds. WMWD reasonably expects to expend the Bond Proceeds on WMWD Facilities within three (3) years from the date of issuance of the Bonds. WMWD agrees that all Bond Proceeds will be expended on capital improvements or used to reimburse prior capital improvement expend itures. To the extent that Bond Proceeds are used to reimburse the Developer or other property owners for f ees previously paid to WMWD, those prepaid impact fees will be deemed to be replaced with Bond Proceeds, and the expenditure of those prepaid impact fees must comply with all of the requirements for the expenditure of Bond Proceeds under applicable law.
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d. WMWD further agrees to maintain a separate accounting for the receipt and expenditure of Bond Proceeds, and to mainta in adequate controls over all Bond Proceeds received by it in accordance with generally acce pted accounting principles. WMWD will, upon request, provide the City with access to WMWD’s records related to the Bond Proceeds received by WMWD and WMWD Facilities financed with Bond Proceeds. If Bond proceeds remain unspent five years after their deposit into the Other Facilitie s Accounts of the Improvement Fund, City shall provide notice to WMWD requiring either the expe nditure or return of said proceeds to the City within a reasonable period of time thereafter.
8. Expectations of the Parties. The Partie s understand and agree that (i) Developer will be making Advances prior to the availability of CFD Proceeds that will be used to pay for WMWD Facilities, (ii) WMWD may be processing and completing payment requests for the payment on such Advances for WMWD Facilities w ith knowledge that there may be insufficient CFD Proceeds available at such time, and (iii) in any such case, the payment of any approved payment requests for such Advances on any WM WD Facilities will be deferred until there are sufficient CFD Proceeds available to pay the A dvances for such WMWD Facilities, at which time the CFD will make such payments in accord ance with this Agreement. At all times, Developer will be making Advances with the expect ation that such Advances will be returned when there are sufficient CFD Proceeds to fi nance WMWD Facilities. The payment of Advances prior to the availability of CFD Proceeds shall not be c onstrued as a dedication or gift of the Advances, or a waiver of the return of the Advances, it being the intention that the WMWD Facilities be paid by the CFD Proceeds to the extent of the availability of CFD Proceeds.
9. Amendment and Assignment. This Agreement may be amended at any time but only in writing signed by each Party hereto. This Agreement may be assigned, in whole or in part, by the Developer to the pu rchaser of any parcel of la nd within the Property, provided, however, such assignment shall not be effective unless and until WMWD and the City have been notified, in writing, of such assignment. Once th e Agreement is assigned to another party, the assignee shall be considered a party hereto, and the assignor shall be re leased of any and all obligations under this Agreemen t. Whenever this Agreement provides the Developer with a right, that right may be exercised by an assignee of that right to the same extent that the Developer could have exercised that right themselves under this Agreement.
10. Entire Agreement. This Agreement contai ns the entire agr eement between the Parties with respect to the matters provided for herein and supersedes all prior agreements and negotiations between the Parties with respect to the subject matter of this Agreement.
11. Notices. Any notice, payment or instrument required or permitted by this Agreement to be given or delivered to either Party shall be deemed to have received when personally delivered or seventy-two hours followi ng deposit of the same in any United States Post Office in California, registered or certified, postage prepaid, addressed as follows:
City: City of Murrieta
1 Town Square
Murrieta, California 92562
Attention: Director of Finance
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With a copy to: Stradling Yocca Carlson & Rauth
660 Newport Center Drive, Suite 1600
Newport Beach, California 92660
Attention: Brian Forbath
WMWD: Western Municipal Water District
14205 Meridian Parkway
Riverside, California 92518
Attention: General Manager
Developer: Century Communities of California, LLC
4695 MacArthur Court, Suite 300
Newport Beach, California 92660
Attention: Justin Brewer, Executive Vice President
With a copy to: O’Neil LLP
19800 MacArthur Boulevard, Suite 650
Irvine, California 92612
Attention: John Yeager
Each Party may change its address for delivery of notice by delivering written notice of such change of address to the other Party hereto.
12. Exhibits. All exhibits attached hereto are incorporated into this Agreement by reference.
13. Attorney’s Fees. In the event of the bringing of any action or suit by any Party against any other Party arising out of this Agr eement, the Party in whose favor final judgment shall be entered shall be entitled to recover from the losing Party all costs and expenses of suit, including reasonable attorneys’ fees.
14. Severability. If any part of this Agreemen t is held to be illegal or unenforceable by court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent reasonably possible.
15. Governing Law. This Agreement and a ny dispute arising hereunder shall be governed by interpreted in accordance with the la ws of the State of Ca lifornia. Any and all actions and other proceedings aris ing from this Agreement must be initiated and concluded in Riverside County, California.
16. Waiver. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party here to, or the failure by a Party to exercise its rights upon the default of another Party, shall not constitute a waiv er of such Party's right to insist and demand strict compliance by such other Party with the terms of this Agreement thereafter.
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17. No Third Party Beneficiaries. No person or entity other than the CFD, when and if formed, shall be deemed to be a third party be neficiary hereof, and nothing in this Agreement (either express or implied) is intended to c onfer upon any person or en tity, other than WMWD, the City, the CFD, and Developer (and their respective successors and assigns, exclusive of individual homebuyers), any rights, remedies, oblig ations or liabilities under or by reason of this Agreement.
18. Singular and Plural; Gender. As used herein, the singular of any word includes the plural, and terms in the masculine gender shall include the feminine.
19. Counterparts. This Agreement may be ex ecuted in counterparts, each of which shall be deemed an original, but all of which shall constitute but one instrument.
[Signature Page Follows]
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year written above.
CITY OF MURRIETA
By:
Justin Clifton, City Manager
ATTEST:
By: _____________________________
Cristal McDonald, City Clerk
WESTERN MUNICIPAL WATER DISTRICT
Craig D. Miller, General Manager
ATTEST:
By: _____________________________
[ ]
DEVELOPER:
CENTURY COMMUNITIES OF CALIFORNIA, LLC ,
a Delaware limited liability company
By:
Name:
Title:
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EXHIBIT A
DEPICTION OF PROPERTY
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EXHIBIT B
DESCRIPTION OF PROPERTY
THE LAND REFERRED TO HEREIN BELO W IS SITUATED IN THE CITY OF
MURRIETA, COUNTY OF RIVERSIDE, STA TE OF CALIFORNIA, AND CONSISTS OF ASSESSOR’S PARCEL NO. 909-190-001.
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EXHIBIT C
WMWD FACILITIES DESCRIPTION
WMWD Facilities. The type of WMWD Facilities eligible to be financed by the CFD under the Act are as follows:
Those water facilities included in WMWD’s water capacity and connection fee programs used to finance expansion projects, including annexation fees. WMWD Facilities include, but are not limited to the following: water transm ission pipelines, pumping plants, water reservoirs, including all costs of site acqui sition, planning, design, engin eering, legal services, materials testing, coordination, surveying, construction st aking, construction, inspection and any and all appurtenant facilities and appurtenant work relating to the foregoing. Below is the exclusive list of the WMWD Fees payable by the Developer to be financed by the CFD.
Fee Description Rate*
Water Capacity Charge – Residential 4” Meter $ 323,210 Per Meter Water Meter Fee – Residential 4” Meter $ 4,506 Per Meter Water Capacity Charge – Irrigation 2” Meter $ 82,034 Per Meter Water Meter Fee – Irrigation 2” Meter $ 1,069 Per Meter Sewer Capacity Charge $ 8,080 Per EDU
*Fee amounts above are as of May 1st, 2026.
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EXHIBIT D
DISBURSEMENT REQUEST FORM
(WMWD Facilities)
1. Community Facilities District No. 2026-1 (Gierson Ranch) of the City of Murrieta (“CFD”) is hereby requested to pay from the CFD Proceeds to Western Municipal Water District (“WMWD”), as Payee, the sum set forth in 3 below.
2. The undersigned certifies that the amount requested for WMWD Facilities has not formed the basis of prior request or payment, and is being made with respect to the connection of the property described below to the WMWD system.
Amount requested:
For WMWD Facilities: $ ___________________
For Tract/Lot Nos: ___________________________
3. The amount set forth in 3 above is authorized and payable pursuant to the terms of the Joint Community Faci lities Agreement by and among the City of Murrieta (for itself and on behalf of the CFD), WMWD, and Century Communities of Calif ornia, LLC, dated ___________, 2026 (the “ Agreement”). Capitalized terms not defi ned herein shall have the meaning set forth in the Agreement. By requ isitioning CFD Proceeds as described above, WMWD is not passing upon, determining or assumi ng the tax-exempt status of the Bonds for federal or California income tax purposes.
CENTURY COMMUNITIES OF CALIFORNIA,
LLC, a Delaware limited liability company
B y :
N a m e :
Title:
D a t e :
WESTERN MUNICIPAL WATER DISTRICT
B y :
N a m e :
Title:
D a t e :