Agenda packet — Palm Springs City Council, July 24, 2023 (part 4 of 5)

b. At the discretion of the Contractor, each potential subcontractor may be required to submit a completed experience questionnaire and audited financial information or show proof of qualifications with the bid document.

c. The Contractor shall advertise all anticipated subcontract work for the purpose of publicizing available work using public means (e.g. newspaper) and public websites or in trade publications.

11. Subcontractor Selection:
a. The Contractor shall hold the subcontracts for all work it solicits. The subcontracts should specifically state that no contractual relationship will be created with the City. b. The Contractor is not an agent of the City with respect to any subcontractor. The Contractor shall provide a copy of all proposed subcontracts, including general supplementary conditions to the City.
c. The City requires a transparent public bidding and award process. d. The Contractor shall award subcontracts to the lowest responsive and responsible bidders after the bids are reviewed by the Contractor unless otherwise approved by the City.
e. The City will provide the procurement process to the Contractor for selecting bidders.

The Contractor shall schedule pre-bid conferences for subcontractors, material suppliers, equipment suppliers and others interested in the project. f. The Contractor shall analyze and evaluate the results of the various bids and their relationships to budgeted and estimated amounts, and prepare a bid tabulation analysis and other supporting data as necessary to document the comparison of the Item 3A - Page 138
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various bids, their responsiveness to the desired scope of work, and the basis for the g. The Contractor and the City should review together the bid results and concur before announcing a subcontract award.

12. Guaranteed Maximum Price (GMP)
a. The Pre-Construction Phase Fee including the Overhead and Profit make up the initial cost of the project along with the initial GMP (IGMP) which will be based on the will evolve as the project design progresses and
subtrades are awarded subcontracts to begin the work.
b. The Contractor shall develop the GMP during the Pre-Construction phase and present it to the City for review and negotiation. It should be based on information collected and analyzed during the Pre-Construction phase and justified in part by market conditions, material costs, subcontractor interest, and scope of work estimates.
c. The items to be included in the GMP are the Pre-Construction Phase Fee, Construction Phase Fee, Adjustments, Overhead and Profit, Direct Cost Items, Allowances, and Contingencies.
d. The Contractor shall transfer the existing previously priced cost items including the Pre-Construction Phase Fee, the General Conditions and Overhead and profit amounts into the GMP. The GMP should identify the remaining balances of these line items.

13. Compensation:
a. Pre-Construction Phase Fee The Pre-Construction Phase Fee includes profit and overhead related to Pre-Construction Services which will become a fixed fee for Pre- Construction Services work. Also included as part of the preconstruction phase fee but line itemed out separately will be the cost of the premiums for all insurance and for all bonds specifically required for the project. Casualty Insurance (including general liability) should include a fixed amount. The bond premium for the Contractor should include a amount. Pre-Construction Services for a Project should include all services relating to constructability review through 100% Construction Documents for the project and other services the City may specify (e.g. estimates, schedules, bidder interest, etc.). The City should pay the Pre-Construction Phase Fee in installments at the completion of specified Preconstruction Phase Services or deliverables. Alternatively, the City may pay the Pre-Construction Phase Fee by lump sum in two or more equal payments, where the first payment is at the delivery of the cost model, other payments occur at the delivery of intermediate milestones, and the last payment takes place at the time of GMP acceptance. b. Construction Phase Fee The Construction Phase Fee which is the primary part of the GMP includes a number of cost items. The first is the General Conditions to set up and run the jobsite. All of the trade costs that will come from bidding out packages of work, any allowances built in to complete the work that are used in the course of Item 3A - Page 139
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 Contractor's selection.

City's estimate for construction and

the work, overhead and profit on the work and any contingencies held for the work.

The components of these fees are better defined as follows:
i. General Conditions The Contractor's compensation for General Conditions work or services performed during the Construction Services Phase should be a fixed lump sum amount negotiated as part of the project GMP, based on a detailed schedule of General Conditions costs and services provided by the Contractor. The items include salaries or other compensation assigned to the project), and management employees at the project job site. Job office costs including job site trailers, utilities, supplies, such as paper, pencils, paper clips, file folders, staples, etc., computers and phones, and janitorial supplies used in connection with the project and any other costs related to running the jobsite should. Along with other direct cost items such as:

Wages paid for labor not included in the Construction Management Fee, but that is in the direct employ of the Contractor in the performance of the construction work for the project, times a fixed multiplier for salaried and hourly staff to cover benefits, payroll taxes, and payroll insurance.

Cost of all materials, supplies, and equipment incorporated in the Project, including costs of transportation and storage.

Cost of materials, supplies, equipment, and temporary facilities used but not consumed in the performance of the work and which will be provided to the City at the end of the project.

Cost less salvage value on materials, supplies, equipment, and temporary facilities used but not consumed and which remains the property of the Contractor.

Rental charges consistent with those prevailing in the area on all necessary machinery and equipment, exclusive of hand tools used on the project, regardless of source. Rental charges include installation, repairs and replacements, dismantling, removal, costs of lubrication, transportation and delivery costs, which are used to support performance of the work.

Laydown area and field office: The Contractor shall be responsible for securing its own laydown area and field office within the site.

Sales, use, gross receipts or similar taxes paid by the Contractor or its subcontractors related to allowable direct costs for the project imposed by any governmental authority.

The cost of corrective work directed and authorized by the City with the exception of the cost of any corrective work made necessary because of defective workmanship or other causes created by the Contractor or its subcontractors or suppliers should not be paid by the City. Nor should the City pay the Contractor for any costs to correct defective workmanship or to correct any work not in conformance with the Plans and Specifications or to meet Item 3A - Page 140
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 Contractor's employees at its principal office and branch offices (for staff

applicable construction- related codes or to correct any deficiency or damage caused by negligent acts by the Contractor.

Costs for trash and debris control and removal from the project site.

Costs incurred due to an emergency affecting the safety of persons and property.

Legal costs reasonably and properly resulting from prosecution of the project for the City, including handling claims for changes by subcontractors and vendors, subject to the following limitations: the City approved incurring such costs in advance, which approval should not be unreasonably denied; and the legal costs and claims were not incurred as result of the Contractor's own negligence or misconduct.

Costs for security services and temporary fencing for the project.

Costs for efficient logistical control of the project site, including horizontal and vertical transportation of materials and staff, adequate storage, temporary roads and parking for the project.

Costs for any project items not otherwise included in this list but should be provided by the Contractor as required to complete the work.

Cost of providing one set of as-constructed documents to the City. Information required on these as-constructed documents should be described in the GMP Contract.

The costs of data processing (information technology support) for the project.

The City retains the right to review the need and effectiveness of any employee assigned by the Contractor at-Risk Contractor or any costs and services included in the Construction Phase Fee, and renegotiate the fee if the City determines that the employee, costs, or services are not necessary for the successful completion of the work.
ii. Subcontracted Trade Work Payments due to subcontractors from the Contractor or made by the Contractor to subcontractors for work performed in accordance with subcontracts issued by the Contractor. Cost, including transportation and maintenance, of all materials, supplies, equipment, temporary facilities, and hand tools not owned by the workmen, which are employed or consumed in the performance of the work.
iii. Allowances and Contractor Contingency The Contractor will be allowed to build in allowances into trade packages for work that may be identified that is necessary to complete the scope of work. These allowances are not guarantees but will be used in the event the scope of work cannot be completed based on the trade package that was provided to the Contractor. Any unused allowance funds remaining in a trade package that are not needed will be moved Contractor related unforeseen conditions when performing the work on a package. The Contingencies are not guaranteed to the Contractor, and unused Item 3A - Page 141
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on the Contractor's contingency. The Contractors contingency is to cover any

contingency will be returned to the City at the end of the project. Any allowance or contingency money that is allowed to be used will change ordered into the prime or subcontracts as approved by the City.
iv. Overhead and Profit for Construction Phase overhead, and profit will be allowed as a percentage of the initial GMP and the City should pay these indirect fees in an amount proportional to approved expenditures for General Conditions and Subtrade costs known as Direct Cost Items. Once the GMP is set the overhead and profit will be set as a fixed fee. Any balance of the fixed fee for the Project should be paid upon substantial completion of the project.

14. Monthly Invoices:
a. The Contractor should submit to the City monthly invoices along with the cost reports required in the GMP Contract showing in detail all monies paid out, all releases of liens and waivers for subcontractors and suppliers who have been paid, and the amount of the Contractor's fees due for each monthly invoice for the project. b. The Estimate and Request for Payment form should list individually, each instrument of change to the work in the GMP or Contingency, its approved value, the amount previously requested, the amount sought in the current request, the total value of completed work and, if requested by the
City, the Estimate and Request for Payment
form should, for each instrument of change to the work in the GMP or Contingency, be further detailed to provide a breakdown, by trade, of the values and requested amounts for each trade, for each change instrument.
c. The Construction Phase Fee will be invoiced and paid monthly as agreed in the project GMP. The first monthly payment will become due 30 days following the acceptance of the GMP by the City and the final monthly payment should be paid only when construction of the project is completed and accepted by the City. If construction is authorized for only a part of the project, the Construction Phase Fee paid should be proportionate to the amount of work authorized by the City. The Contractor may invoice and the City may pay the Construction Phase Fee in monthly payments as agreed between the Contractor and the City as set forth in the project GMP. The first monthly payment should become due thirty days following the acceptance of the GMP and the final monthly payment should be paid upon final acceptance of the project.
d. The
City should withhold retainage on all payments at a rate specified in the GMP Contract and as established in the contract. Additional retainage should not be -Construction Services Fee,
Construction Phase Fee (which includes General Conditions and Trade Costs which shall be itemized) and Overhead & Profit for the Project should be shown as separate line items on the Schedule of Contract Values for the project. e. Payment of the Contractor at-
calculated based on approved invoiced amounts for General Conditions and Subtrade completed work and justification should be attached to the monthly invoice.

The City should pay the Contractor after receipt of evidence of satisfactory Item 3A - Page 142
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 withheld on services or fees. The Contractor's Pre
Risk Contractor's Overhead and Profit should be

performance that is in conformance with applicable GMP Contract provisions governing testing, inspection and acceptance.
f. Final Payment Final payment consisting of the unpaid balance of the GMP for the project, retainage and the Contractor's fee should be due and payable upon substantial completion of the project. Final Payment should not relieve Contractor of any obligation under Contract warranty, guaranty and indemnification provisions and any other provisions that remain in effect after termination of the Contract. Retainage will be paid and will be issued in the final payment after acceptance by the City of
the work on each Phase.
g. Payments for Materials and Equipment may be invoiced by the Contractor, and the City will pay for materials and equipment received on the project site or another location before being used during construction or incorporated into the work, if the equipment and materials are in conformance with the Contract requirements, are received, inventoried and stored properly, the City approves, accepts, and acquires title upon payment for them. The Contractor retains responsibility for the care, custody and control of these materials and equipment.

15. Buyout Process:
a. As bids are obtained a buyout report shall be created by the Contractor to track costs against the initial GMP. If subcontract bids for project work come in below the applicable line item amounts in the project initial GMP, the surpluses will be added comes in above the applicable line item amounts in a project initial GMP, the These cost accounting actions may increase the overall initial project GMP. b. Any increased costs to construct the project and incurred by the Contractor resulting f
submitted to the City as a change request. The decision to make any changes, and to incur the costs from these changes, is within the authority of the City. c. Any increased project costs incurred by the Contractor resulting from other actions to be a responsibility of the City. If the City disagrees with the cost allocation, and the responsibility, the Contractor may submit documentation establishing responsibility be deemed the responsibility of the City if the City subsequently agrees in writing to grant the claim and accept responsibility for the increased costs, or if the claim is granted and responsibility assigned to the City pursuant to the claim process. d. If the Contractor anticipates that such costs may be incurred, it should, if feasible, provide the City with sufficient advance notice (no less than 14 days), to allow the City a reasonable opportunity to avoid such costs. The City may increase the GMP in lieu of charging the cost to the City Contingency.

16. Negotiation and Award of GMP
Item 3A - Page 143
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 to the Contractor's Contingency for the project. If subcontractor bids for project work deficiencies should be subtracted from the Contractor's Contingency for the project. rom the City's express written changes in plans, specifications or work should of the City should be charged to the City's Contingency, if these costs are deemed Contractor cannot secure written agreement that these costs are the City's for these costs in its claim for appeal of the City's initial decision. Such costs should

a. The Contractor shall refine the initial GMP into a final GMP that will be set for the duration of the job once all bid packages have been bid out or when the Contractor is confident that the estimate remaining on the project will allow for the job to be completed successfully. The City will allow for adjustments in the initial GMP for increases in the actual costs of the bid packages by the subtrades that could not have been anticipated the overhead and profit will be remain at the percentage priced with the initial GMP. The timing of negotiations for the GMP is flexible and may occur before 100% complete design. A decision on the timing will be made by the project team which includes the Contractor.

b. The Contractor shall propose a GMP amount to complete the project. The City has the option of accepting or rejecting the project GMP as presented by the Contractor and negotiated between the Contractor and the City. If the City accepts the GMP, the City will issue an acceptance notice to the Contractor.

c. If the negotiations of the GMP are unsuccessful, the City will pay the Contractor any remaining undisputed Contractor Fee, and may proceed as follows:

i. Reject the GMP and direct the Contractor to investigate or develop for the cost savings, and re-submit a new, reduced amount GMP proposal. This may, e reduction in scope;
Or,
ii. Reject the GMP and take possession of all Contractor work product, then select a new Contractor for the project using Contractor at-Risk delivery, or advertise the project using design-bid-build delivery, or otherwise complete the project with other forces or take such action that the City may determine is in the

17. a. The Contractor shall establish and maintain lines of authority for their personnel and should provide this definition to the City. This will ensure that information flow and issue identification and resolution involves the appropriate City staff other stakeholder personnel.
b. The Contractor should provide a Superintendent who has authority to represent the written document describing the delegation of complete project authority to its Superintendent to act on behalf of and to bind the Contractor in all matters pertaining to the work.
c. The Contractor should establish and maintain lines of authority for its company and project personnel, and provide this definition to its Superintendent and to the City, its subcontractors, and any other stakeholders associated with the project. d. The Superintendent shall provide general direction for the work and manage the resources necessary to provide satisfactory progress of the various phases of the work, including satisfactory progress provided by subcontractors. The Item 3A - Page 144
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 City's approval, other value engineering options, and other areas of potential at the City's option, includ
public's best interest.

The Contractor's Construction Team and Lines of Authority:

Contractor. Upon the City's written request, the Contractor should give the City a

Superintendent will coordinate project activities and communicate with the City as appropriate for the successful completion of the work.

18. Quality Control The Contractor is responsible and accountable for the quality control of the work including quality control testing and inspection. The Contractor shall supervise the work of all subcontractors, reviewing construction means, methods, techniques, sequences and procedures to ensure that the work is performed in accordance with the Contract requirements.

19. Final Inspection The City should make a final inspection on all completed phases of the project with the Contractor.

20. Final Payment The Final Application for Payment should be accompanied by final releases of all waivers or liens from the Contractor and all subcontractors for work performed and services provided to the project.

21. Approval of Final Payment If the City, on the basis of observations and review of the work during construction, the final inspection and review of the final estimate and requisition for payment, as required by the GMP Contract, finds that the work has been completed in accordance with the GMP Contract, and that the Contractor has fulfilled all obligations under the GMP Contract, the City should approve the final payment to the Contractor.

22. Final Accounting Costs Final accounting of costs of the work should be provided by the Contractor in the form of a detailed cost report showing vendor, invoice number and date of invoice for all costs, all sorted by trade division cost code as is maintained in the Contractor accounting system. The City should require access to all accounting records accountant.

23. Close-Out and Audit The City should require a final external audit of the project within a specified period of time. The Contractor should retain all project cost records for six years from the close out date of the project.

1.3 Prevailing Wages:

A. Certain labor categories under this project may be subject to prevailing wages as identified in the State of California Labor Code commencing at sections 1720 et seq. and 1770 et seq. If applicable, employees working in these categories at the site must be paid not less than the basic hourly rates of pay and fringe benefits established by the California are available for review at www.dir.ca.gov/dlsr/. In addition, a copy of the prevailing rate of per diem wages will be made available at City Hall upon request. The Contractor shall post a copy of the prevailing wage rates at each job site. It shall be mandatory upon the selected Contractor, and upon any subcontractors, to comply with all Labor Code provisions, which include but are not limited to the payment of not less than the said specified prevailing wage rates to all workers employed by them in the execution of the Agreement, employment of apprentices, hours of labor and debarment of contractors and subcontractors.

B. Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to enter into a contract to perform public work must be registered with the DIR at the time of contract award. If awarded a contract, the Consultant and its subcontractors, of any tier, shall maintain active registration with the DIR for the duration of the project.

Item 3A - Page 145
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 at the Contractor's place of business for review and reporting purposes by the City Department of Industrial Relations ("DIR"). Copies of the State of California wage schedules

Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1. The contract awarded pursuant to this RFP may also be subject to compliance monitoring and enforcement by the DIR.

1.4 Project Labor Agreement:

A.
,
available upon request, and incorporated herein by reference as if fully set forth herein. The Contractor will be required to agree to the provisions set forth in the Agreement.

1.5 Federal Provisions:

A. The Project will be funded in whole or in part by a FAA grant the following funding source in addition to City funds: The Contractor shall comply with all state and federal requirements including, but not limited to, 2 C.F.R. Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which is expressly incorporated herein by reference, and the grant and federal provisions in the Agreement.

B. Additionally, shall be subject to 2 CFR § 200.321 and will take affirmative steps to assure that minority firms, women
when possible and will not be discriminated against on the grounds of race, color, religious creed, sex, or national origin in consideration for an award. Affirmative steps shall include:

1. Placing qualified small and minority businesses and women's business enterprises on solicitation lists;

2. Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources;

3. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority business, and women's business enterprises;

4. Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority business, and women's business enterprises; and

5. Using the services/assistance of the Small Business Administration (SBA), and the Minority Business Development Agency (MBDA) of the Department of Commerce.

Item 3A - Page 146
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 The Work is subject to the City's Community Workforce Agreement dated August 31, 2021 ("CWA" or "Project Labor Agreement" or "PLA"), a copy of which is on file with the City 's business enterprises, and labor surplus area firms are used

1.6 Schedule/Period of Performance:

Work is anticipated to start on this project around November of 2023. The Contractor shall complete work in eighteen months or approximately December of 2025. The Contractor shall complete a baseline project schedule within the first 30 days of the project for approval. The Contractor shall keep the schedule updated each month and submit updates with the requests for payment.

1.7 Compensation:

The Guaranteed Maximum Price will be broken down into a schedule of values and work will be compensated based on a percentage of the work completed. The GMP for the construction phase may be adjusted if there are unusual circumstances that are beyond the Contractors control or if the City chooses to expedite materials or subcontract work. Initial construction contract pricing will be based on an estimate provided by the City for the work and will be refined as the bid packages are awarded to the subtrades at such time such pricing will include all labor, expenses, and incidentals to complete the work outlined in the contract scope. The Contractor may request monthly payments based on the percentage of work completed for the previous month as long as a detailed schedule of values and progress report is provided to support the amount requested which includes breakdowns for the subtrades also. No additional compensation will be due by the City unless the contract is modified for additional work requested by the City.

Item 3A - Page 147
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Item 3A - Page 148
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 Existing Conditions Photos
North portion of the terminal where the proposed building will be expanded.

Item 3A - Page 149
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 Possible relocation of the rental car counters.

Item 3A - Page 150
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 Proposed baggage claim demolition and restoration.

Additional view of entire Baggage Claim Area
Item 3A - Page 151
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Additional view of entire Baggage Claim Area

Item 3A - Page 152
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PRICING

Item 3A - Page 154
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 EXHIBIT "C"
ATTACHMENT "G"

COST PROPOSAL
REQUEST FOR PROPOSAL (RFP 34-23)

INBOUND BAGGAGE CLAIM CONSTRUCTION MANAGER AT RISK SERVICES ITEM DESCRIPTION Quantity Unit of Unit Cost or SUBTOTAL Measure Percentage
Preconstruction Services Fee
1 Bonds and Insurance $24,500 ,000 Percentage 3.80% $931,000 2 Preconstruction Services Lumpsum $255,169
3 Overhead and Profit for Lumpsum $7,655 Preconstruction Services Subtotal Preconstruction Services $1,193,824
Construction Services Fee
4 Initial City Estimate IGMP $24,500,000
5 General Condit ions (Prime) 18 Months 9.97% $2,442,650 Subtotal IGMP and GCs $26,942,650
6 CMAR Fee (Overhead and Profit
as a percentage of Construction
Percentage 3.36% $905,273
Services (applied to subtotal
above will be fixed fee at GM P
stage)
Subtotal Construction Services $27,847,923
Total (Preconstruction Services+ Construction Services) $29,041,747 Certified by: Dave Christensen
Firm Name : Skanska USA Building inc.

DIR No: 1000004112 ~
Signature of Authorized Person : ---'cz'-"'~l .. '-\::~-..... ....,;iii=:=;.__=;------- Printed Name: Dave Christensen
Title : Vice President - Operations Manager
Date : June 28, 2023

Page 47 of 50 ends

BOND FORMS

Performance Bond
KNOW ALL PERSONS BY THESE PRESENTS:

THAT WHEREAS, the City of Palm Springs has awarded to

WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated ________________, (hereinafter referred to as reference; and
WHEREAS, the Contractor is required by the Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of the Contract Documents.

NOW, THEREFORE, we, _______________, the undersigned Contractor and _____________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the City in the sum of ___________________________ DOLLARS, ($____________), the sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one-year guarantee of all materials and workmanship; and shall indemnify and save harmless the City, its officers and agents, as stipulated in the Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

As a condition precedent to the satisfactory completion of the Project, unless otherwise provided for in the Contract Documents, the guarantee obligation shall hold good for a period of one (1) year after the acceptance of the work by City, during which time if Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect City from loss or damage resulting from or caused by defective materials or faulty workmanship the above obligation in penal sum thereof shall remain in full force and effect. However, anything in this paragraph to the contrary notwithstanding, the obligations of Surety hereunder shall continue so e
California Code of Civil Procedure section 337.15.

Item 3A - Page 155
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 EXHIBIT "D"
(hereinafter referred to as "City")
________ _, (hereinafter referred to as the "Contractor'') an agreement for _____________ (hereinafter referred to as the "Project"). "Contract Documents"), the terms and conditions of which are expressly incorporated herein by long as any obligation of Contractor remains. Nothing herein shall limit City 's rights or th Contractor or Surety's obligations under the Contract, law or equity, including, but not limited to,

As a part of the obligation secured hereby and in addition to the face amount specified therefor, ther
fees, incurred by City in enforcing such obligation.

Whenever Contractor shall be, and is declared by City to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall

Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or
Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and City, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. total amount payable to Contractor by City under the Contract and any modification thereto, less any amount previously paid by City to the Contractor and any other set offs pursuant to the Contract Documents.

Permit City to complete the Project in any manner consistent with California law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other of the
Contractor by City under the Contract and any modification thereto, less any amount previously paid by City to the Contractor and any other set offs pursuant to the Contract Documents.

Surety expressly agrees that City may reject any contractor or subcontractor which may be proposed by Surety in fulfillment of its obligations in the event of default by the Contractor.

Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid from Contractor for completion of the Project if City, when declaring the Contractor in default, notifies

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract to be performed thereunder, shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of Contract. including but not limited to the provisions of Sections 2819 and 2845 of the California Civil Code. [Remainder of Page Left Intentionally Blank.]
Item 3A - Page 156
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 e shall be included costs and reasonable expenses and fees including reasonable attorney's promptly, at City's option:
•
•
The term "balance of the contract price" as used in this paragraph shall mean the •
costs and damages for which Surety may be liable. The term "balance contract price" as used in this paragraph shall mean the total amount payable to Surety of City 's objection to Contractor's further participation in the completion of the Project.

IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20___.
_________________________________________

CONTRACTOR/PRINCIPAL
_________________________________________
Name
By_______________________________________
SURETY:

By: ______________________________________
Attorney-In-Fact
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached.

The rate of premium on this bond is ____________ per thousand. The total amount of premium charges, $_______________________________.
(The above must be filled in by corporate attorney.)

THE FOLLOWING INFORMATION IS MANDATORY
Any claims under this bond may be addressed to:
(Name and Address of Surety) ___________________________________________ ___________________________________________
___________________________________________
(Name and Address of Agent or ___________________________________________ Representative for service of
process in California, if different ___________________________________________ from above)
___________________________________________
(Telephone number of Surety and ___________________________________________ Agent or Representative for service
of process in California)

Item 3A - Page 157
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Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally

appeared , who proved to me on the basis of satisfactory

evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s ) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT Individual
Corporate Officer
Title(s) Title or Type of Document
Partner(s) Limited
General Number of Pages
Attorney-In-Fact
Trustee(s)
Guardian/Conservator Date of Document
Other:

Signer is representing:

Name Of Person(s) Or Entity(ies)

Signer(s) Other Than Named Above

END OF PERFORMANCE BOND
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Payment Bond (Labor and Materials).

KNOW ALL PERSONS BY THESE PRESENTS:

THAT WHEREAS, the City of Palm Springs to
_______________________ an agreement for ______________________________

WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated ________________, (hereinafter referred to as reference; and
WHEREAS, Principal is required to furnish a bond in connection with the contract described above; providing that if Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth.

NOW THEREFORE, we, the Principal and __________________________ as Surety, are held and firmly bound unto City in the penal sum of ______________ Dollars ($___________) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH that if Principal, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Section 9100 of the Civil Code, fail to pay for any materials, provisions or other supplies, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of the contractor and his subcontractors pursuant to Section 18663 of the Revenue and Taxation Code, with respect to such work and labor the Surety or Sureties will pay for the same, in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, all litigation expenses incurred by City in such suit, including reasonable

This bond shall inure to the benefit of any of the persons named in Section 9100 of the Civil Code so as to give a right of action to such persons or their assigns in any suit brought upon this bond.

It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any Item 3A - Page 159
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 (hereinafter referred to as "City ") has awarded
(hereinafter referred to as the "Contractor'')
(hereinafter referred to as the "Project").
"Contract Documents"), the terms and conditions of which are expressly incorporated herein by attorneys' fees, court costs, expert witness fees and investigation expenses.

scheme or work of improvement herein above described, nor by any rescission or attempted rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between City and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 9100 of the Civil Code, and has not been paid the full amount of his claim.

IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original thereof, have been duly executed by the Principal and Surety above named, on the _____ day of ______________________ 20______ the name and corporate seal of each corporate party being hereto affixed and these presents duly signed by its undersigned representative pursuant to authority of its governing body. (Corporate Seal of Principal,
if corporation) Principal (Property Name of Contractor) By
(Signature of Contractor)
(Seal of Surety)
Surety
By
Attorney in Fact
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached. A Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.

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STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally

appeared , who proved to me on the basis of satisfactory

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)

Signer(s) Other Than Named Above

END OF PAYMENT (LABOR AND MATERIALS) BOND
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FEDERAL FUNDING REQUIREMENTS

FEDERAL AVIATION ADMINISTRATION

FEDERAL PROVISIONS

Provision
Reference Provision Description
Page
No.

FAA - 01 Access to Records and Reports 2
FAA - 02 Affirmative Action Requirement * 3
FAA 03 Breach of Contract Terms 5
FAA 04 Buy American Preference * 6
FAA 05 Civil Rights General 7
FAA 06 Civil Rights Title VI Assurances * 8
FAA 07 Clean Air and Water Pollution Control 11
FAA 08 Contract Work Hours and Safety Standards Act Requirements 12 FAA 09 Copeland Anti-Kickback Act 14
FAA 10 Davis Bacon Requirements 15
FAA 11 Debarment and Suspension * 22
FAA 12 Disadvantaged Business Enterprise * 23
FAA 13 Distracted Driving 25
FAA 14 Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment
26 FAA 15 Drug Free Workplace Requirements (not applicable to Contractors)
27 FAA 16 Equal Employment Opportunity 28
FAA 17 Federal Fair Labor Standards Act * 36
FAA 18 Lobbying and Influencing Federal Employees 37
FAA 19 Prohibition of Segregated Facilities 38
FAA 20 Occupational Safety and Health Act of 1970 39
FAA 21 Procurement of Recovered Materials * 40
FAA 22 Right to Inventions 41
FAA 23 Seismic Safety 42
FAA 24 Tax Delinquency and Felony Convictions* 43
FAA 25 Termination of Contract 44
FAA 26 Trade Restriction Certification (Foreign) * 45
FAA 27 47
FAA 28 Domestic Preferences for Procurements * 48

*Solicitation Clause also
Updated 2.8.2023
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DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 EXHIBIT "E"
-
-
-
- -
-
-
-
-
--
-
-
-
-
-
--
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-
-
-
-
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- Veteran's Preference
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FAA - 01 Access to Records and Reports
APPLICABILITY pertains to all contracts.

The Contractor must maintain an acceptable cost accounting system. The Contractor agrees to provide the City, the Federal Aviation Administration and the Comptroller General of the United States or any of their duly authorized representatives access to any books, documents, papers and records of the Contractor which are directly pertinent to the specific contract for the purpose of making audit, examination, excerpts and transcriptions. The Contractor agrees to maintain all books, records and reports required under this contract for a period of not less than three years after final payment is made and all pending matters are closed.

Reference: 2 CFR § 200.334, 2 CFR § 200.337, FAA Order 5100.38 Item 3A - Page 163
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FAA - 02 Affirmative Action Requirement
ARTICLE 3NOTICE OF REQUIREMENT FOR AFFIRMATIVE ACTION TO

ENSURE EQUAL EMPLOYMENT OPPORTUNITY
APPLICABILITY pertains to all contracts over $10,000 as follows:

Construction AIP funded construction work contracts and subcontracts that exceed $10,000.

Construction work means construction, rehabilitation, alteration, conversion, extension, demolition or repair of buildings, highways or other changes or improvements to real property, including facilities providing utility services. The term also includes the supervision, inspection and other onsite functions incidental to the actual construction.

Equipment any equipment project exceeding $10,000 that involves installation of equipment onsite (e.g., electrical vault equipment). This provision does not apply to equipment acquisition (e.g., firefighting and snow removal vehicles).

Professional Services
any professional service agreement if the professional services agreement includes tasks that meet the definition of construction work [as defined by the U.S.

Department of Labor (DOL)] and exceeds $10,000. Examples include installation of monitoring systems (e.g., noise, environmental, etc.).

Property/Land any agreement associated with land acquisition if the agreement includes construction work (defined above) that exceeds $10,000. Examples include demolition of structures or installation of boundary fencing.

REQUIREMENTS -

2. The goals and timetables for minority and female participation, expressed in construction work in the covered area, are as follows:

Timetables
Goals for minority participation for each trade: 19%
Goals for female participation in each trade: 6.9%
Federal or federally assisted) performed in the covered area. If the Contractor performs construction work in a geographical area located outside of the covered area, it shall apply the goals established for such geographical area where the work is actually performed. With regard to this second area, the Contractor also is subject to the goals for both its federally involved and nonfederally involved construction.
-4
shall be based on its implementation of the Equal Opportunity Clause, specific affirmative action Item 3A - Page 164
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 projects where the manufacture of the equipment takes place offsite at a manufacturer's plant

1. The Contractor's attention is called to the "Equal Opportunity Clause" and the "Standard Federal Equal Employment Opportunity Construction Contract Specifications" set forth herein.
percentage terms for the Contractor's aggregate workforce in each trade on all These goals are applicable to all of the Contractor's construction work (whether or not it is The Contractor's compliance with the Executive Order and the regulations in 41 CFR Part 60

obligations required by the specifications set forth in 41 CFR 60-4.3(a) and its efforts to meet the goals. The hours of minority and female employment and training must be substantially uniform throughout the length of the contract, and in each trade, and the Contractor shall make a good faith effort to employ minorities and women evenly on each of its projects. The transfer of minority or female employees or trainees from Contractor to Contractor or from project to project for the sole purpose of mee
the Executive Order and the regulations in 41 CFR Part 60-4. Compliance with the goals will be measured against the total work hours performed.

The Contractor shall provide written notification to the Director of the Office of Federal Contract Compliance Programs (OFCCP) within 10 working days of award of any construction subcontract in excess of $10,000 at any tier for construction work under the contract resulting from this solicitation. The notification shall list the name, address, and telephone number of the subcontractor; employer identification number of the subcontractor; estimated dollar amount of the subcontract; estimated starting and completion dates of the subcontract; and the geographical area in which the subcontract is to be performed.

California, Riverside County, Palm Springs.

Reference: 41 CFR Part 60-4

Item 3A - Page 165
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 ting the Contractor's goals shall be a violation of the contract, As used in this notice and in the contract resulting from this solicitation, the "covered area" is

FAA 03 Breach of Contract
APPLICABILITY required for all contracts that exceed the simplified acquisition threshold as stated in 2 CFR Part 200, Appendix II (A). This threshold is occasionally adjusted for inflation and is $250,000.

REQUIREMENT -
See Section 4.5 of the Agreement.

Reference: 2 CFR § 200 Appendix II(A)
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FAA 04 Buy American Preferences
APPLICABILITY required for contracts defined as follows:

Construction Projects involving the replacement, rehabilitation, reconstruction of airfield surfaces such as on runways, taxiways, taxilanes, aprons, roadways, parking lots, etc.

Insert the Certificate of compliance to FAA Buy American Preference based on Construction Projects.

Equipment and Buildings Projects involving and including the acquisition of equipment such as snow removal equipment, navigational aids, wind cones, and the construction of buildings such as hangars, terminal development, lighting vaults, aircraft rescue & firefighting buildings, etc. - Insert the Certificate of Compliance with FAA Buy American Preference Based on Equipment/Building Projects.

REQUIREMENT -
The Contractor certifies that all constructions materials, defined to mean an article, material, or supply other than an item of primarily iron or steel; a manufactured product; cement and cementitious materials; aggregates such as stone, sand, or gravel; or aggregate binding agents or additives that are or consist primarily of: non-ferrous metals; plastic and polymer-based products (including polyvinylchloride, composite building materials, and polymers used in fiber optic cables); glass (including optic glass); lumber; or drywall used in the project are manufactured in the U.S.

Reference: Title 49 USC § 50101
Item 3A - Page 167
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 •
•

FAA 05 Civil Rights General
APPLICABILITY required for all contracts regardless of funding source.

REQUIREMENT -
In all its activities within the scope of its airport program, the Contractor agrees to comply with pertinent statutes, Executive Orders, and such rules as identified in Title VI List of Pertinent Nondiscrimination Acts and Authorities to ensure that no person shall, on the grounds of race, color, national origin (including limited English proficiency), creed, sex (including sexual orientation and gender identity), age, or disability be excluded from participating in any activity conducted with or benefiting from Federal assistance. The above provision binds the Contractor and subcontractors from the bid solicitation period through the completion of the contract.

This provision is in addition to that required by Title VI of the Civil Rights Act of 1964.

Reference: 49 USC § 47123
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FAA 06 Civil Rights Title VI Assurances
APPLICABILITY required for all contracts.

REQUIREMENT -
Title VI List of Pertinent Nondiscrimination Acts and Authorities During the performance of this contract, the Contractor, for itself, its assignees, and successors -
discrimination statutes and authorities; including but not limited to:
discrimination on the basis of race, color, national origin); -discrimination in Federally-Assisted programs of the Department of Transportation Effectuation of Title VI of the Civil Rights Act of 1964); § 4601) (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); discrimination on the basis of disability); and 49 CFR part 27 (Nondiscrimination on the Basis of Disability in Programs or Activities Receiving Federal Financial Assistance); discrimination on the basis of age);
s amended (prohibits
discrimination based on race, creed, color, national origin, or sex); -259) (broadened the scope, coverage and
applicability of Title VI of the Civil Rights Act of 1964, the Age Discrimination Act of 1975 and -aid recipients, sub-recipients
and contractors, whether such programs or activities are Federally funded or not); discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities) as implemented by U.S. Department of Transportation regulations at 49 CFR parts 37 and 38; 23) (prohibits
discrimination on the basis of race, color, national origin, and sex); Populations and Low-Income Populations (ensures nondiscrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations); ited English
Proficiency, and resulting agency guidance, national origin discrimination includes discrimination Item 3A - Page 169
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 in interest (hereinafter referred to as the "Contractor'') agrees to comply with the following non • Title VI of the Civil Rights Act of 1964 (42 USC § 2000d et seq., 78 stat. 252) (prohibits • 49 CFR part 21 (Non
• The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 USC • Section 504 of the Rehabilitation Act of 1973 (29 USC § 794 et seq.), as amended (prohibits • The Age Discrimination Act of 1975, as amended (42 USC § 6101 et seq.) (prohibits • Airport and Airway Improvement Act of 1982 (49 USC § 47123), a • The Civil Rights Restoration Act of 1987 (PL 100
Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms "programs or activities" to include all of the programs or activities of the Federal • Titles II and Ill of the Americans with Disabilities Act of 1990 (42 USC§ 12101, et seq) (prohibit • The Federal Aviation Administration's Nondiscrimination statute (49 USC § 471 • Executive Order 12898, Federal Actions to Address Environmental Justice in Minority • Executive Order 13166, Improving Access to Services for Persons with Lim

because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs [70 Fed.

Reg. 74087 (2005)];
discriminating because of sex in education programs or activities (20 USC § 1681, et seq).

Compliance with Nondiscrimination Requirements:

During the performance of this contract, the Contractor, for itself, its assignees, and successors

1. Compliance with Regulations: The Contractor (hereinafter includes consultants) will comply with the Title VI List of Pertinent Nondiscrimination Acts and Authorities, as they may be amended from time to time, which are herein incorporated by reference and made a part of this contract.

2. Nondiscrimination: The Contractor, with regard to the work performed by it during the contract, will not discriminate on the grounds of race, color, national origin (including limited English proficiency), creed, sex (including sexual orientation and gender identity), age, or disability in the selection and retention of subcontractors, including procurements of materials and leases of equipment. The Contractor will not participate directly or indirectly in the discrimination prohibited by the Nondiscrimination Acts and Authorities, including employment practices when the contract covers any activity, project, or program set forth in Appendix B of 49 CFR part 21.

3. Solicitations for Subcontracts, including Procurements of Materials and Equipment:

In all solicitations, either by competitive bidding or negotiation made by the Contractor for work to be performed under a subcontract, including procurements of materials, or leases of equipment, each potential subcontractor or supplier will be notified by the Contractor of the on the grounds of race, color, or national origin.

4. Information and Reports: The Contractor will provide all information and reports required by the Acts, the Regulations, and directives issued pursuant thereto and will permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by the City or the Federal Aviation Administration to be pertinent to ascertain compliance with such Nondiscrimination Acts and Authorities and instructions. Where any information required of a Contractor is in the exclusive possession of another who fails or refuses to furnish the information, the Contractor will so certify to the City or the Federal Aviation Administration, as appropriate, and will set forth what efforts it has made to obtain the information.

5. Sanctions for Noncompliance: -
discrimination provisions of this contract, the City will impose such contract sanctions as it or the Federal Aviation Administration may determine to be appropriate, including, but not limited to:
a. Withholding payments to the Contractor under the contract until the Contractor complies; and/or
Item 3A - Page 170
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 • Title IX of the Education Amendments of 1972, as amended, which prohibits you from in interest (hereinafter referred to as the "Contractor''), agrees as follows:

Contractor's obligations under this contract and the Nondiscrimination Acts and Authorities In the event of a Contractor's noncompliance with the non

b. Cancelling, terminating, or suspending a contract, in whole or in part.

6. Incorporation of Provisions: The Contractor will include the provisions of paragraphs one through six in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Acts, the Regulations, and directives issued pursuant thereto. The Contractor will take action with respect to any subcontract or procurement as the City or the Federal Aviation Administration may direct as a means of enforcing such provisions including sanctions for noncompliance. Provided, that if the Contractor becomes involved in, or is threatened with litigation by a subcontractor, or supplier because of such direction, the Contractor may request the City to enter into any litigation to protect the interests of the City. In addition, the Contractor may request the United States to enter into the litigation to protect the interests of the United States.

Reference: 49 USC § 47123, FAA Order 1400.11
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FAA 07 Clean Air/Water Pollution Control
APPLICABILITY This provision is required for all contracts and lower tier contracts that exceed $150,000.

REQUIREMENT -
If the Agreement exceeds $150,000, Contractor agrees to comply with all applicable standards, orders, and regulations issued pursuant to the Clean Air Act (42 USC § 7401-7671q) and the Federal Water Pollution Control Act as amended (33 USC § 1251-1387). The Contractor agrees to report any violation to the City immediately upon discovery. The City assumes responsibility for notifying the Environmental Protection Agency (EPA) and the Federal Aviation Administration.

Contractor must include this requirement in all subcontracts that exceeds $150,000.

Reference: 2 CFR § 200, Appendix II(G); 42 USC § 7401; 33 USC § 1251

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FAA 08 Contract Work Hours and Safety Standards
APPLICABILITY This provision is required for contracts as follows:

Contract Work Hours and Safety Standards Act Requirements (CWHSSA) (40 USC §§ 3702 & 3704) requires contractors and subcontractors on covered contracts to pay laborers and mechanics employed in the performance of the contracts not less than one and one-half times their basic rate of pay for all hours worked over 40 in a workweek. CWHSSA prohibits unsanitary, hazardous, or dangerous working conditions on federally-assisted projects. The Wage and Hour Division (WHD) within the U.S. Department of Labor (DOL) enforces the compens
Administration (OSHA) enforces the safety and health requirements.

Contract Types
Construction This provision applies to all contracts and lower tier contracts that exceed $100,000, and employ laborers, mechanics, watchmen, and guards.

Equipment This provision applies to any equipment project exceeding $100,000 that involves installation of equipment onsite (e.g., electrical vault equipment). This provision does not apply to equipment acquisition projects where the manufacture of the equipment takes place offsite at the vendor plant (e.g., ARFF and SRE vehicles).

Professional Services This provision applies to professional service agreements that exceed $100,000 and employs laborers, mechanics, watchmen, and guards. This includes members of survey crews and exploratory drilling operations.

Property While most land transactions do not involve employment of laborers, mechanics, watchmen, and guards, under certain circumstances, a property acquisition project could require such employment. Examples include the installation of property fencing or testing for environmental contamination

CONTRACT WORKHOURS AND SAFETY STANDARDS ACT REQUIREMENTS

1. Overtime Requirements.

No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic, including watchmen and guards, in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek.

2. Violation; Liability for Unpaid Wages; Liquidated Damages.

In the event of any violation of the clause set forth in paragraph (1) of this clause, the Contractor and any subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph (1) of this clause, in the sum of $29 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph (1) of this clause.

3. Withholding for Unpaid Wages and Liquidated Damages.

Item 3A - Page 173
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 ation requirements of this Act, while DOL's Occupational Safety and Health

The Federal Aviation Administration (FAA) or the City shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld, from any moneys payable on account of work performed by the Contractor or subcontractor under any such contract or any other Federal contract with the same prime Contractor, or any other federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime Contractor, such sums as may be determined to be necessary to satisfy any liabilities of such Contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (2) of this clause.

4. Subcontractors.

The Contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraphs (1) through (4) and also a clause requiring the subcontractor to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs (1) through (4) of this clause.

Reference: 2 CFR Part 200, Appendix II(E); 2 CFR § 5.5(b); 40 USC § 3702; 40 USC § 3704
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FAA 09 Copeland Anti-Kickback

APPLICABILITY -
The Copeland (Anti-Kickback) Act (18 USC § 874 and 40 USC § 3145) makes it unlawful to induce by force, intimidation, threat of dismissal from employment, or by any other manner, any person employed in the construction or repair of public buildings or public works, financed in whole or in part by the United States, to give up any part of the compensation to which that person is entitled under a contract of employment. The Copeland Act also requires each contractor and subcontractor to furnish weekly a statement of compliance with respect to the wages paid each employee during the preceding week.

Contract Types
Construction This provision applies to all construction contracts and subcontracts financed under the AIP that exceed $2,000.

Professional Services The emergence of different project delivery methods has created situations where Professional Service Agreements (PSAs) include tasks that meet the definition of construction, alteration, or repair as defined in 29 CFR Part 5. If such tasks result in work that qualifies as construction, alteration, or repair and it exceeds $2,000, the PSA must incorporate the Copeland Anti-kickback provision.

Property Ordinarily, land acquisition projects would not involve employment of laborers or mechanics and thus the Copeland Anti-Kickback provision would not apply. However, land projects that involve installation of boundary fencing and demolition of structures would involve laborers and mechanics. The City must include this provision if the land acquisition project involves employment of laborers or mechanics for a contract exceeding $2,000.

REQUIREMENT -
-
874 and 40 USC 3145), as supplemented by Department of Labor regulation 29 CFR part

3. Contractor and subcontractors are prohibited from inducing, by any means, any person employed on the project to give up any part of the compensation to which the employee is entitled. The Contractor and each Subcontractor must submit to the City, a weekly statement on the wages paid to each employee performing on covered work during the prior week. City must report any violations of the Act to the Federal Aviation Administration.

Reference: 2 CFR Part 200, Appendix II(D); 29 CFR Parts 3 and 5 Item 3A - Page 175
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 apply to equipment acquisitions where the equipment is manufactured at the vendor's Contractor must comply with the requirements of the Copeland "Anti Kickback" Act (18 USC

FAA 10 Davis Bacon Requirements

APPLICABILITY -
The Davis-Bacon Act (40 USC §§ 3141-3144, 3146, and 3147) ensures that laborers and mechanics employed under the contract receive pay no less than the locally prevailing wages and fringe benefits as determined by the Department of Labor.

Contract Types
Construction all construction contracts and subcontracts that exceed $2,000 and include funding from the AIP.

Equipment
This provision applies to all equipment installation projects (e.g., electrical vault improvements) financed under the AIP that exceed $ 2,000. This provision does not apply to and ARFF vehicles)
Professional Services
The emergence of different project delivery methods has created situations where Professional Service Agreements (PSAs) includes tasks that meet the definition of construction, alteration, or repair as defined in 29 CFR Part 5. If such tasks result in work that qualifies as construction, alteration, or repair and it exceeds $2,000, the PSA must incorporate this clause.

Property Ordinarily, land acquisition projects would not involve employment of laborers or mechanics and thus the provision would not apply. However, land projects that involve installation of boundary fencing and demolition of structures would involve laborers and mechanics. The City must include this provision if the land acquisition project involves employment of laborers or mechanics for a contract exceeding $2,000.

Fencing Projects Fencing projects that exceed $2,000 must include this provision.

DAVIS-BACON REQUIREMENTS

1. Minimum Wages.
(i) All laborers and mechanics employed or working upon the site of the work will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by the Secretary of Labor under the Copeland Act (29 CFR Part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalent thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the Contractor and such laborers and mechanics.

Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1(b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph (1)(iv) of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination Item 3A - Page 176
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for the classification of work actually performed, without regard to skill, except as provided in 29 CFR § 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein:
classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under (1)(ii) of this section) and the Davis-Bacon poster (WH-1321) shall be posted at all times by the Contractor and its subcontractors at the site of the work in a prominent and accessible place where it can easily be seen by the workers. (ii)(A) The contracting officer shall require that any class of laborers or mechanics, including helpers, which is not listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. The contracting officer shall approve an additional classification and wage rate and fringe benefits therefore only when the following criteria have been met:
(1) The work to be performed by the classification requested is not performed by a classification in the wage determination;
(2) The classification is utilized in the area by the construction industry; and (3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination. (B) If the Contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the contracting officer agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of the action taken shall be sent by the contracting officer to the Administrator of the Wage and Hour Division, U.S. Department of Labor, Washington, DC 20210. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary.
(C) In the event the Contractor, the laborers, or mechanics to be employed in the classification, or their representatives, and the contracting officer do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the contracting officer shall refer the questions, including the views of all interested parties and the recommendation of the contracting officer, to the Administrator for determination. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary.
(D) The wage rate (including fringe benefits where appropriate) determined pursuant to subparagraphs (1)(ii) (B) or (C) of this paragraph, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification.
(iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof.

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(iv) If the Contractor does not make payments to a trustee or other third person, the Contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, that the Secretary of Labor has found, upon the written request of the Contractor, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the Contractor to set aside in a separate account assets for the meeting of obligations under the plan or program.

2. Withholding. The Federal Aviation Administration or the CIty shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld from the Contractor under this contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime contractor, so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the Contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the work, all or part of the wages required by the contract, the Federal Aviation Administration may, after written notice to the Contractor, City, Applicant, or Owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased.

3. Payrolls and Basic Records.
(i) Payrolls and basic records relating thereto shall be maintained by the Contractor during the course of the work and preserved for a period of three years thereafter for all laborers and mechanics working at the site of the work. Such records shall contain the name, address, and social security number of each such worker; his or her correct classification; hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in 1(b)(2)(B) of the Davis-Bacon Act); daily and weekly number of hours worked; deductions made; and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(1)(iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in section 1(b)(2)(B) of the Davis-Bacon Act, the Contractor shall maintain records that show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual costs incurred in providing such benefits. Contractors employing apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs. (ii)(A) The Contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the Federal Aviation Administration if the agency is a party to the contract, but if the agency is not such a party, the Contractor will submit the payrolls to the applicant, the City, or Owner, as the case may be, for transmission to the Federal Aviation Administration. The payrolls submitted shall set out accurately and completely all of the information required to be maintained under 29 CFR § 5.5(a)(3)(i), except that full social security numbers and home addresses shall not be included on weekly transmittals. Instead the payrolls shall only need to Item 3A - Page 178
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include an individually identifying number for each employee (e.g., the last four digits of the any form desired. Optional Form WH 347 is available for this purpose from the Wage and Hour Division Web site at http://www.dol.gov/esa/whd/forms/wh347instr.htm or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors.

Contractors and subcontractors shall maintain the full social security number and current address of each covered worker and shall provide them upon request to the Federal Aviation Administration if the agency is a party to the contract, but if the agency is not such a party, the Contractor will submit them to the applicant, the City, or Owner, as the case may be, for transmission to the Federal Aviation Administration, the Contractor, or the Wage and Hour Division of the Department of Labor for purposes of an investigation or audit of compliance with prevailing wage requirements. It is not a violation of this section for a prime contractor to require a subcontractor to provide addresses and social security numbers to the prime contractor for its own records, without weekly submission to the sponsoring government agency (or the applicant, City, or Owner).
(B) Each payroll submitted shall be accompanied by a "Statement of Compliance," signed by the Contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and shall certify the following:
(1) That the payroll for the payroll period contains the information required to be provided under 29 CFR § 5.5(a)(3)(ii), the appropriate information is being maintained under 29 CFR § 5.5 (a)(3)(i), and that such information is correct and complete; (2) That each laborer and mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in Regulations, 29 CFR Part 3;
(3) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the contract. (C) The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH-

(D) The falsification of any of the above certifications may subject the Contractor or subcontractor to civil or criminal prosecution under Section 1001 of Title 18 and Section 231 of Title 31 of the United States Code.
(iii) The Contractor or subcontractor shall make the records required under paragraph (3)(i) of this section available for inspection, copying, or transcription by authorized representatives of the City, the Federal Aviation Administration, or the Department of Labor and shall permit such representatives to interview employees during working hours on the job. If the Contractor or subcontractor fails to submit the required records or to make them available, the Federal agency may, after written notice to the Contractor, the City, applicant, or Owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds.

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DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 employee's social security number). The required weekly payroll information may be submitted in 347 shall satisfy the requirement for submission of the "Statement of Compliance" required by paragraph (3)(ii)(B) of this section.

Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR § 5.12.

4. Apprentices and Trainees.
(i) Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Office of Apprenticeship Training, Employer and Labor Services, or with a State Apprenticeship Agency recognized by the Office, or if a person is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually registered in the program, but who has been certified by the Office of Apprenticeship Training, Employer and Labor Services or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be greater than the ratio permitted to the contractor as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. Where a contractor is performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed in p apprentice must be paid at not less than the rate specified in the registered program for the gress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that determination. In the event the Office of Apprenticeship Training, Employer and Labor Services, or a State Apprenticeship Agency recognized by the Office, withdraws approval of an apprenticeship program, the Contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved.
(ii) Trainees. Except as provided in 29 CFR § 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered in a program which has received prior approval, evidenced by formal certification by the U.S. Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the Employment and Training Administration. Every trainee must be paid at not less than the rate spec
a percentage of the journeyman hourly rate specified in the applicable wage determination.

Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Item 3A - Page 180
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 ercentages of the journeyman's hourly
rate) specified in the Contractor's or subcontractor's registered program shall be observed. Every apprentice's level of pro
ified in the approved program for the trainee's level of progress, expressed as

Division determines that there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination that provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate that is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the Contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved.
(iii) Equal Employment Opportunity. The utilization of apprentices, trainees, and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30.

5. Compliance with Copeland Act Requirements.

The Contractor shall comply with the requirements of 29 CFR Part 3, which are incorporated by reference in this contract.

6. Subcontracts.

The Contractor or subcontractor shall insert in any subcontracts the clauses contained in 29 CFR §§ 5.5(a)(1) through (10) and such other clauses as the Federal Aviation Administration may by appropriate instructions require, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in 29 CFR § 5.5.

7. Contract Termination: Debarment.

A breach of the contract clauses in paragraph 1 through 10 of this section may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR § 5.12.

8. Compliance with Davis-Bacon and Related Act Requirements.

All rulings and interpretations of the Davis-Bacon and Related Acts contained in 29 CFR Parts 1, 3, and 5 are herein incorporated by reference in this contract.

9. Disputes Concerning Labor Standards.

Disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR Parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the Contractor (or any of its subcontractors) and the contracting agency, the U.S. Department of Labor, or the employees or their representatives.

10. Certification of Eligibility.

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(i) By entering into this contract, the Contractor certifies that neither it (nor he or she) nor any s a person or firm ineligible to be
awarded Government contracts by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR §

5.12(a)(1).
(ii) No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR § 5.12(a)(1). (iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 USC § 1001.

Reference: 2 CFR Part 200, Appendix II(D); 29 CFR Part 5; 49 USC § 47112(b); 40 USC §§ 3141- 3144, 3146, and 3147
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FAA 11 Debarment and Suspension
APPLICABILITY - This requirement applies to covered transactions, which are defined in 2 CFR part 180 (Subpart B). AIP funded contracts are non-procurement transactions, as defined by 2 CFR § 180.970. Covered transactions include any AIP-funded contract, regardless of tier, that is awarded by a contractor, subcontractor, supplier, consultant, or its agent or representative in any transaction, if the amount of the contract is expected to equal or exceed $25,000. This includes contracts associated with land acquisition projects.

REQUIREMENT -
A11.3.1 Bidder or Offeror Certification
By submitting a bid/proposal under the solicitation for this contract, the Contractor must have certified that neither it nor its principals are presently debarred or suspended by any Federal department or agency from participation in this transaction.

A11.3.2 Lower Tier Contract Certification

CERTIFICATION OF LOWER TIER CONTRACTORS REGARDING DEBARMENT The
not presently debarred or otherwise disqualified from participation in this federally assisted project. The Contractor will accomplish this by:

1. Checking the System for Award Management at website: http://www.sam.gov.

2. Collecting a certification statement similar to the Certification of Offerer /Bidder Regarding Debarment, above.

3. Inserting a clause or condition in the covered transaction with the lower tier contract.

If the Federal Aviation Administration later determines that a lower tier participant failed to disclose to a higher tier participant that it was excluded or disqualified at the time it entered the covered transaction, the FAA may pursue any available remedies, including suspension and debarment of the non-compliant participant.

Reference: 2 CFR part 180 (Subpart B), 2 CFR part 200 Appendix II(H), 2 CFR Part 1200, DOT Order 4200.5; Executive Orders 12549 and 12689
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FAA 12 Disadvantaged Business Enterprise
APPLICABILITY all contracts with Airports that have a DBE program on file with the FAA.

Contract Assurance (§ 26.13)
The Contractor or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The Contractor shall carry out applicable requirements of 49 CFR part 26 in the award and administration of Department of Transportation-assisted contracts. Failure by the Contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the City deems appropriate, which may include, but is not limited to:
1) Withholding monthly progress payments;
2) Assessing sanctions;
3) Liquidated damages; and/or
4) Disqualifying the Contractor from future bidding as non-responsible.

Prompt Payment (§26.29)
The prime contractor agrees to pay each subcontractor under this prime contract for satisfactory performance of its contract no later than [10 days] days from the receipt of each payment the prime contractor receives from [the City]. The prime contractor agrees further to return retainage payments to each subcontractor within [30 days] days after the above referenced time frame may occur only for good cause following written approval of the [City]. This clause applies to both DBE and non-DBE subcontractors.

Termination of DBE Subcontracts (49 CFR § 26.53(f))
The prime Contractor must not terminate a DBE subcontractor listed in response to the solicitation (or an approved substitute DBE firm) without prior written consent of the City. This includes, but is not limited to, instances in which the prime contractor seeks to perform work originally designated for a DBE subcontractor with its own forces or those of an affiliate, a non-DBE firm, or with another DBE firm.

The prime Contractor shall utilize the specific DBEs listed to perform the work and supply the materials for which each is listed unless the Contractor obtains written consent of the City. Unless City consent is provided, the prime Contractor shall not be entitled to any payment for work or material unless it is performed or supplied by the listed DBE.

The City may provide such written consent only if the City agrees, for reasons stated in the concurrence document, that the prime Contractor has good cause to terminate the DBE firm. For purposes of this paragraph, good cause includes the circumstances listed in 49 CFR §26.53.

Before transmitting to the City its request to terminate and/or substitute a DBE subcontractor, the prime Contractor must give notice in writing to the DBE subcontractor, with a copy to the City, of its intent to request to terminate and/or substitute, and the reason for the request.

The prime contractor must give the DBE five days to respond to the prime contractor's notice and advise the City and the Contractor of the reasons, if any, why it objects to the proposed termination of its subcontract and why the City should not approve the prime Contractor's action. If required Item 3A - Page 184
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in a particular case as a matter of public necessity (e.g., safety), the City may provide a response period shorter than five days.

In addition to post-award terminations, the provisions of this section apply to preaward deletions of or substitutions for DBE firms put forward by offerors in negotiated procurements.

Reference: 49 CFR part 26
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FAA 13 Distracted Driving
APPLICABILITY - contracts that exceed the micro-purchase threshold of 2 CFR § 200.320 (currently set at $10,000).

REQUIREMENT -

TEXTING WHEN DRIVING
(12/30/2009), the Federal Aviation Administration encourages recipients of Federal grant funds to adopt and enforce safety policies that decrease crashes by distracted drivers, including policies to ban text messaging while driving when performing work related to a grant or subgrant.

In support of this initiative, the City encourages the Contractor to promote policies and initiatives for its employees and other work personnel that decrease crashes by distracted drivers, including policies that ban text messaging while driving motor vehicles while performing work activities associated with the project. The Contractor must include the substance of this clause in all sub- tier contracts exceeding $10,000 that involve driving a motor vehicle in performance of work activities associated with the project.

Reference: Executive Order 13513, DOT Order 3902.10
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DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 In accordance with Executive Order 13513, "Federal Leadership on Reducing Text Messaging While Driving", (10/1/2009) and DOT Order 3902.10, "Text Messaging While Driving",

FAA 14 Prohibition on Certain Telecommunications and Video Surveillance Services and Equipment
APPLICABILITY - all AIP funded contracts and lower-tier contracts.

REQUIREMENT -
Contractor and Subcontractor agree to comply with mandatory standards and policies relating to use and procurement of certain telecommunications and video surveillance services or equipment in compliance with the National Defense Authorization Act [Public Law 115-232 § 889(f)(1)].

Reference: 2 CFR § 200, Appendix II(K); 2 CFR § 200.216 Item 3A - Page 187
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FAA 15 Drug Free Workplace Requirements
APPLICABILITY - This provision applies to all AIP funded projects, but not to the contracts between the City and a contractor, subcontractors, suppliers, or subgrantees.

The Drug-Free Workplace Act of 1988 requires some Federal contractors and all Federal grantees to agree that they will provide drug-free workplaces as a condition of receiving a contract or grant from a Federal agency. The Act does not apply to contractors, subcontractors, or subgrantees, although the Federal grantees workplace may be where the contractors, subcontractors, or subgrantees are working.

Reference: 49 CFR part 32, Drug-Free Workplace Act of 1988 (41 U.S.C. 701 et seq., as amended)

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FAA 16 Equal Employment Opportunity
APPLICABILITY The purpose of this provision is to provide equal opportunity for all persons, without regard to race, color, religion, sex, or national origin who are employed or seeking employment with contractors performing under a federally-assisted construction contract. There

The equal opportunity contract clause applies to any contract or subcontract when the amount exceeds $10,000. Once the equal opportunity clause is determined to be applicable, the contract or subcontract must include the clause for the remainder of the year, regardless of the amount or the contract.

Contract Types

Construction all construction contracts and subcontracts as required above.

Equipment all equipment contracts as required above that involves installation of equipment onsite (e.g., electrical vault equipment). This provision does not apply to equipment acquisition projects where the manufacture of the equipment takes place offsite at the vendor plant (e.g., ARFF and SRE vehicles).

Professional Services all professional service agreements as required above.

Property all land acquisition projects that include work that qualifies as construction work as defined by 41 CFR part 60 as required above. An example is installation of boundary fencing.

REQUIREMENT -
A16.3.1 EEO Contract Clause
During the performance of this contract, the Contractor agrees as follows:
(1) The Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, or national origin. The Contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, sexual orientation, gender identify, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff, or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. (2) The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin.
(3) The contractor will not discharge or in any other manner discriminate against any employee or applicant for employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This provision shall not apply to instances in which an employee who has access Item 3A - Page 189
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 are two provisions - a construction clause and a specification clause.

to the compensation information of other employees or applicants as a part of such employee's essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such disclosure is in response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by the employer, or is consistent with the contractor's legal duty to furnish information. (4) The Contractor will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice to be provided by the agency contracting officer, advising the labor union or worker 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.
(5) The Contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. (6) The Contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the contracting agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.
contract or with any such rules, regulations, or orders, this contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. (8) The Contractor will include the provisions of paragraphs (1) through (8) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a means of enforcing such provisions, including sanctions for noncompliance:

Provided, however, that in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction, the Contractor may request the United States to enter into such litigation to protect the interests of the United States.

A16.3.2 EEO Specification

STANDARD FEDERAL EQUAL EMPLOYMENT OPPORTUNITY

CONSTRUCTION CONTRACT SPECIFICATIONS
a.
contract resulted;
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Contractor's commitments under this section 202 of Executive Order 11246 of September 24, (7) In the event of the Contractor's noncompliance with the nondiscrimination clauses of this "Covered area" means the geographical area described in the solicitation from which this

Compliance Programs (OFCCP), U.S.

Department of Labor, or any person to whom the Director delegates authority; Department Form 941;

(1) Black (all persons having origins in any of the Black African racial groups not of Hispanic origin);
(2) Hispanic (all persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish culture or origin, regardless of race);
(3) Asian and Pacific Islander (all persons having origins in any of the original peoples of the Far East, Southeast Asia, the Indian Subcontinent, or the Pacific Islands); and (4) American Indian or Alaskan native (all persons having origins in any of the original peoples of North America and maintaining identifiable tribal affiliations through membership and participation or community identification).

2. Whenever the Contractor, or any subcontractor at any tier, subcontracts a portion of the work involving any construction trade, it shall physically include in each subcontract in excess of $10,000 the provisions of these specifications and the Notice which contains the applicable goals for minority and female participation and which is set forth in the solicitations from which this contract resulted.

3. If the Contractor is participating (pursuant to 41 CFR part 60-4.5) in a Hometown Plan approved by the U.S. Department of Labor in the covered area either individually or through an association, its affirmative action obligations on all work in the Plan area (including goals and timetables) shall be in accordance with that Plan for those trades which have unions participating in the Plan. Contractors must be able to demonstrate their participation in and compliance with the provisions of any such Hometown Plan. Each contractor or subcontractor participating in an approved plan is individually required to comply with its obligations under the EEO clause and to make a good faith effort to achieve each goal under the Plan in each trade in which it has employees. The overall good faith performance by other contractors or subcontractors toward a goal in an approved Plan does not excuse any goals and timetables.

4. The Contractor shall implement the specific affirmative action standards provided in paragraphs 7a through 7p of these specifications. The goals set forth in the solicitation from which this contract resulted are expressed as percentages of the total hours of employment and training of minority and female utilization the Contractor should reasonably be able to achieve in each construction trade in which it has employees in the covered area. Covered construction contractors performing construction work in a geographical areas where they do not have a Federal or federally assisted construction contract shall apply the minority and female goals established for the geographical area where the work is being performed. Goals are published periodically in the Federal Register in notice form, and such notices may be obtained from any Office of Federal Contract Compliance Programs office or from Federal Item 3A - Page 191
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 b. "Director'' means Director, Office of Federal Contract c. "Employer identification number'' means the Federal social security number used on the Employer's Quarterly Federal Tax Return, U.S. Treasury
d. "Minority" includes:
covered contractor's or subcontractor's failure to take good faith efforts to achieve the Plan

procurement contracting officers. The Contractor is expected to make substantially uniform progress in meeting its goals in each craft during the period specified.

5. Neither the provisions of any collective bargaining agreement, nor the failure by a union with whom the Contractor has a collective bargaining agreement, to refer either minorities or 11246, or the regulations promulgated pursuant thereto.

6. In order for the nonworking training hours of apprentices and trainees to be counted in meeting the goals, such apprentices and trainees must be employed by the Contractor during the training period, and the Contractor must have made a commitment to employ the apprentices and trainees at the completion of their training, subject to the availability of employment opportunities. Trainees must be trained pursuant to training programs approved by the U.S. Department of Labor.

7. The Contractor shall take specific affirmative actions to ensure equal employment based upon its effort to achieve maximum results from its actions. The Contractor shall document these efforts fully, and shall implement affirmative action steps at least as extensive as the following:
a. Ensure and maintain a working environment free of harassment, intimidation, and to work. The Contractor, where possible, will assign two or more women to each construction project. The Contractor shall specifically ensure that all foremen, superintendents, and other onsite supervisory personnel are aware of and carry out the ligation to maintain such a working environment, with specific attention to minority or female individuals working at such sites or in such facilities. b. Establish and maintain a current list of minority and female recruitment sources, provide written notification to minority and female recruitment sources and to community organizations when the Contractor or its unions have employment opportunities

c. Maintain a current file of the names, addresses, and telephone numbers of each minority and female off-the-street applicant and minority or female referral from a union, a recruitment source, or community organization and of what action was taken with respect to each such individual. If such individual was sent to the union hiring hall for referral and was not referred back to the Contractor by the union or, if referred, not employed by the Contractor, this shall be documented in the file with the reason therefor, along with whatever additional actions the Contractor may have taken. d. Provide immediate written notification to the Director when the union or unions with which the Contractor has a collective bargaining agreement has not referred to the Contractor a minority person or woman sent by the Contractor, or when the Contractor efforts to meet its obligations.
e. Develop on-the-job training opportunities and/or participate in training programs for the area which expressly include minorities and women, including upgrading programs and Item 3A - Page 192
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 women shall excuse the Contractor's obligations under these specifications, Executive Order opportunity. The evaluation of the Contractor's compliance with these specifications shall be coercion at all sites, and in all facilities at which the Contractor's employees are assigned Contractor's ob
available, and maintain a record of the organizations' responses. has other information that the union referral process has impeded the Contractor's

especially those programs funded or approved by the Department of Labor. The Contractor shall provide notice of these programs to the sources compiled under 7b above.
f.
training programs and requesting their cooperation in assisting the Contractor in meeting its EEO obligations; by including it in any policy manual and collective bargaining agreement; by publicizing it in the company newspaper, annual report, etc.; by specific review of the policy with all management personnel and with all minority and female employees at least once a year; and by posting the company EEO policy on bulletin boards accessible to all employees at each location where construction work is performed.
g.
ligations
under these specifications with all employees having any responsibility for hiring, assignment, layoff, termination, or other employment decisions including specific review of these items with onsite supervisory personnel such superintendents, general foremen, etc., prior to the initiation of construction work at any job site. A written record shall be made and maintained identifying the time and place of these meetings, persons attending, subject matter discussed, and disposition of the subject matter. h.
the news media, specifically including minority and female news media, and providing h other contractors
and subcontractors with whom the Contractor does or anticipates doing business. i. Direct its recruitment efforts, both oral and written, to minority, female, and community organizations, to schools with minority and female students and to minority and female employment needs. Not later than one month prior to the date for the acceptance of applications for apprenticeship or other training by any recruitment source, the Contractor shall send written notification to organizations such as the above, describing the openings, screening procedures, and tests to be used in the selection process. j. Encourage present minority and female employees to recruit other minority persons and women and, where reasonable, provide after school, summer, and vacation employment force.
k. Validate all tests and other selection requirements where there is an obligation to do so under 41 CFR part 60-3.
l. Conduct, at least annually, an inventory and evaluation at least of all minority and female personnel, for promotional opportunities and encourage these employees to seek or to prepare for, through appropriate training, etc., such opportunities. m. Ensure that seniority practices, job classifications, work assignments, and other personnel practices do not have a discriminatory effect by continually monitoring all Item 3A - Page 193
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 apprenticeship and trainee programs relevant to the Contractor's employment needs, Disseminate the Contractor's EEO policy by providing notice of the policy to unions and Review, at least annually, the company's EEO policy and affirmative action ob Disseminate the Contractor's EEO policy externally by including it in any advertising in written notification to and discussing the Contractor's EEO policy wit recruitment and training organizations serving the Contractor's recruitment area and to minority and female youth both on the site and in other areas of a contractor's work

personnel and employment related activities to ensure that the EEO policy and the

n. Ensure that all facilities and company activities are nonsegregated except that separate or single-user toilet and necessary changing facilities shall be provided to assure privacy between the sexes.
o. Document and maintain a record of all solicitations of offers for subcontracts from minority and female construction contractors and suppliers, including circulation of solicitations to minority and female contractor associations and other business associations.
p.
s.

8. Contractors are encouraged to participate in voluntary associations, which assist in fulfilling one or more of their affirmative action obligations (7a through 7p). The efforts of a contractor association, joint contractor-union, contractor-community, or other similar group of which the Contractor is a member and participant may be asserted as fulfilling any one or more of its obligations under 7a through 7p of these specifications provided that the Contractor actively participates in the group, makes every effort to assure that the group has a positive impact on the employment of minorities and women in the industry, ensures that the concrete participation, makes a good faith effort to meet its individual goals and timetables, and can provide access to documentation which demonstrates the effectiveness of actions taken on

noncompliance.

9. A single goal for minorities and a separate single goal for women have been established. The Contractor, however, is required to provide equal employment opportunity and to take affirmative action for all minority groups, both male and female, and all women, both minority and non-minority. Consequently, the Contractor may be in violation of the Executive Order if a particular group is employed in a substantially disparate manner (for example, even though the Contractor has achieved its goals for women generally, the Contractor may be in violation of the Executive Order if a specific minority group of women is underutilized).

10. The Contractor shall not use the goals and timetables or affirmative action standards to discriminate against any person because of race, color, religion, sex, sexual orientation, gender identity, or national origin.

11. The Contractor shall not enter into any subcontract with any person or firm debarred from Government contracts pursuant to Executive Order 11246.

12. The Contractor shall carry out such sanctions and penalties for violation of these specifications and of the Equal Opportunity Clause, including suspension, termination, and cancellation of existing subcontracts as may be imposed or ordered pursuant to Executive Order 11246, as amended, and its implementing regulations, by the Office of Federal Contract Compliance Programs. Any contractor who fails to carry out such sanctions and penalties shall be in violation of these specifications and Executive Order 11246, as amended.

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DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 Contractor's obligations under these specifications are being carried out.

Conduct a review, at least annually, of all supervisor's adherence to and performance under the Contractor's EEO policies and affirmative action obligation benefits of the program are reflected in the Contractor's minority and female workforce behalf of the Contractor. The obligation to comply, however, is the Contractor's and failure of such a group to fulfill an obligation shall not be a defense for the Contractor's

13. The Contractor, in fulfilling its obligations under these specifications, shall implement specific affirmative action steps, at least as extensive as those standards prescribed in paragraph 7 of these specifications, so as to achieve maximum results from its efforts to ensure equal employment opportunity. If the Contractor fails to comply with the requirements of the Executive Order, the implementing regulations, or these specifications, the Director shall proceed in accordance with 41 CFR part 60-4.8.

14. The Contractor shall designate a responsible official to monitor all employment related activity to ensure that the company EEO policy is being carried out, to submit reports relating to the provisions hereof as may be required by the Government, and to keep records. Records shall at least include for each employee, the name, address, telephone numbers, construction trade, union affiliation if any, employee identification number when assigned, social security number, race, sex, status (e.g., mechanic, apprentice, trainee, helper, or laborer), dates of changes in status, hours worked per week in the indicated trade, rate of pay, and locations at which the work was performed. Records shall be maintained in an easily understandable and retrievable form; however, to the degree that existing records satisfy this requirement, contractors shall not be required to maintain separate records.

15. Nothing herein provided shall be construed as a limitation upon the application of other laws which establish different standards of compliance or upon the application of requirements for the hiring of local or other area residents (e.g. those under the Public Works Employment Act of 1977 and the Community Development Block Grant Program).

Reference: 2 CFR 200, Appendix II(C), 41 CFR § 60-1.4, 41 CFR § 60-4.3, Executive Order 11246

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FAA 17 Federal Fair Labor Standards Act
APPLICABILITY Contract Types Per the Department of Labor, all employees of certain enterprises having workers engaged in interstate commerce; producing goods for interstate commerce; or handling, selling, or otherwise working on goods or materials that have been moved in or produced for such commerce by any person are covered by the FLSA.

All consultants, sub-consultants, contractors, and subcontractors employed under this federally assisted project must comply with the FLSA.

Professional Services 29 CFR § 213 exempts employees in a bona fide executive, administrative or professional capacity. Because professional firms employ individuals that are not covered by this exemption, the agreement with a professional services firm must include the FLSA provision.

REQUIREMENT -
The provisions of 29 CFR part 201, the Federal Fair Labor Standards Act (FLSA), are incorporated by reference with the same force and effect as if given in full text. The FLSA sets minimum wage, overtime pay, recordkeeping, and child labor standards for full and part-time workers.

The Contractor has full responsibility to monitor compliance to the referenced statute or regulation. The Contractor must address any claims or disputes that arise from this requirement directly with the U.S. Department of Labor Wage and Hour Division.

Reference: 29 USC § 201, et seq; 2 CFR § 200.430
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FAA 18 Lobbying and Influencing Federal Employees
APPLICABILITY- all contracts exceeding $100,000.

REQUIREMENT -
Consultants and contractors that apply or bid for an award of $100,000 or more must have certified that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant, or another award covered by 31 USC §1352. Each tier must also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award.

For an award over $100,00, the bidder or offeror certifies by signing and submitting this bid or proposal, to the best of his or her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the bidder or offeror, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-

(3) The undersigned shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, sub-grants, and contracts under grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

Reference: 31 USC § 1352 Byrd Anti-Lobbying Amendment, 2 CFR part 200, Appendix II(I), 49 CFR part 20, Appendix A
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Lobbying," in accordance with its instructions.

FAA 19 Prohibition of Segregated Facilities
APPLICABILITY - The Contractor must comply with the requirements of the EEO clause by ensuring that facilities they provide for employees are free of segregation on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin. This clause must be included in all contracts that include the equal opportunity clause, regardless of the amount of the contract.

Contract Types any contract containing the Equal Employment Opportunity clause of 41 CFR § 60-1.4. This obligation flows down to subcontract and sub-tier purchase orders containing the Equal Employment Opportunity clause.

Construction Construction work means construction, rehabilitation, alteration, conversion, extension, demolition or repair of buildings, highways, or other changes or improvements to real property, including facilities providing utility services. The term also includes the supervision, inspection, and other onsite functions incidental to the actual construction.

Equipment On site installation of equipment such as airfield lighting control equipment meets the definition of construction and thus this provision would apply. This provision does not apply example would be the manufacture of a SRE or ARFF vehicle.

Professional Services Professional services that include tasks that qualify as construction work as defined by 41 CFR part 60-1. Examples include the installation of noise monitoring equipment.

Property/Land Land acquisition contracts that include tasks that qualify as construction work as defined by 41 CFR part 60-1. Examples include demolition of structures or installation of boundary fencing.

REQUIREMENT -
(a) The Contractor agrees that it does not and will not maintain or provide for its employees any segregated facilities at any of its establishments, and that it does not and will not permit its employees to perform their services at any location under its control where segregated facilities are maintained. The Contractor agrees that a breach of this clause is a violation of the Equal Employment Opportunity clause in this contract. (b)
rooms and wash rooms, restaurants and other eating areas, time clocks, locker rooms and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas, transportation, and housing facilities provided for employees that are segregated by explicit directive or are in fact segregated on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin because of written or oral policies or employee custom. The term does not include separate or single-user rest rooms or necessary dressing or sleeping areas provided to assure privacy between the sexes. (c) The Contractor shall include this clause in every subcontract and purchase order that is subject to the Equal Employment Opportunity clause of this contract.

Reference: 2 CFR Part 200, Appendix II (C); 41 CFR Part 60-1 Item 3A - Page 198
DocuSign Envelope ID: 43CA5BEC-7883-44E2-BDA0-1822497C7AE4 to equipment projects involving manufacture of the item at a vendor's manufacturing plant. An "Segregated facilities," as used in this clause, means any waiting rooms, work areas, rest

FAA 20 Occupational Safety and Health Act
APPLICABILITY Contract Types All contracts and subcontracts must comply with the Occupational Safety and Health Act of 1970 (OSH). The U.S. Department of Labor Occupational Safety and Health Administration (OSHA) oversees the workplace health and safety standards wage provisions from OSH.

REQUIREMENT -
All contracts and subcontracts that result from this solicitation incorporate by reference the requirements of 29 CFR Part 1910 with the same force and effect as if given in full text. The employer must provide a work environment that is free from recognized hazards that may cause death or serious physical harm to the employee. The employer retains full responsibility to monitor Occupational Safety and Health Act of 1970 (29 CFR Part 1910). The employer must address any claims or disputes that pertain to a referenced requirement directly with the U.S. Department of Labor Occupational Safety and Health Administration.

Reference: 29 CFR part 1910
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FAA 21 Procurement of Recovered Materials
APPLICABILITY Contract Types This provision applies to any contracts that include procurement of products designated in subpart B of 40 CFR part 247 where the purchase price of the item exceeds $10,000 or the value of the quantity acquired by the preceding fiscal year exceeded $10,000.

Construction and Equipment all construction and equipment projects.

Professional Services and Property if the agreement includes procurement of a product that exceeds $10,000.

REQUIREMENT -
Contractor and subcontractor agree to comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act, and the regulatory provisions of 40 CFR Part 247. In the performance of this contract and to the extent practicable, the Contractor and subcontractors are to use products containing the highest percentage of recovered materials for items designated by the Environmental Protection Agency (EPA) under 40 CFR Part 247 whenever:
1) The contract requires procurement of $10,000 or more of a designated item during the fiscal year; or
2) The contractor has procured $10,000 or more of a designated item using Federal funding during the previous fiscal year.

The list of EPA-designated items is available at www.epa.gov/smm/comprehensive-procurement- guidelines-construction-products.

Section 6002(c) establishes exceptions to the preference for recovery of EPA-designated products if the contractor can demonstrate the item is:
a) Not reasonably available within a timeframe providing for compliance with the contract performance schedule;
b) Fails to meet reasonable contract performance requirements; or c) Is only available at an unreasonable price.

Reference: 2 CFR § 200.323, 2 CFR Part 200, Appendix II (J); 40 CFR part 247, 42 USC § 6901, et seq (Resource Conservation and Recovery Act)
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FAA 22 Rights to Inventions
APPLICABILITY Contract Types This provision applies to all contracts and subcontracts with small business firms or nonprofit organizations that include performance of experimental, developmental, or research work. This clause is not applicable to construction, equipment, or professional service contracts unless the contract includes experimental, developmental, or research work.

REQUIREMENT -
Contracts or agreements that include the performance of experimental, developmental, or research work must provide for the rights of the Federal Government and the City in any resulting invention as established by 37 CFR part 401, Rights to Inventions Made by Non-profit Organizations and Small Business Firms under Government Grants, Contracts, and Cooperative Agreements. This contract incorporates by reference the patent and inventions rights as specified within 37 CFR §401.14. Contractor must include this requirement in all sub-tier contracts involving experimental, developmental, or research work.

Reference: 2 CFR § 200, Appendix II(F), 37 CFR 401

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FAA - 23 Seismic Safety
APPLICABILITY Contract Types This provision applies to construction of new buildings and additions to existing buildings financed in whole or in part through the Airport Improvement Program.

Professional Services any contract involved in the construction of new buildings or structural addition to existing buildings.

Construction any contract involved in the construction of new buildings or structural addition to existing buildings.

Equipment
if the project involves construction or structural addition to a building such as an electrical vault project to accommodate or install equipment.

Land This provision will not typically apply to a property/land project.

REQUIREMENT -
A23.3.1 Professional Service Agreements for Design

SEISMIC SAFETY
In the performance of design services, the Consultant agrees to furnish a building design and associated construction specification that conform to a building code standard that provides a level of seismic safety substantially equivalent to standards as established by the National Earthquake Hazards Reduction Program (NEHRP). Local building codes that model their building code after the current version of the International Building Code (IBC) meet the NEHRP equivalency level for seismic safety. At the conclusion of the design services, the Consultant design and the construction specifications with the seismic standards of NEHRP or an equivalent building code.

A23.3.2 Construction Contracts

SEISMIC SAFETY
The Contractor agrees to ensure that all work performed under this contract, including work performed by subcontractors, conforms to a building code standard that provides a level of seismic safety substantially equivalent to standards established by the National Earthquake Hazards Reduction Program (NEHRP). Local building codes that model their code after the current version of the International Building Code (IBC) meet the NEHRP equivalency level for seismic safety.

Reference: 49 CFR Part 41
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FAA 24 Tax Delinquency and Felony Conviction
APPLICABILITY This provision applies to all contracts funded in whole or part with AIP.

REQUIREMENT -
The Contractor must have certified under the procurement process that resulted in the award of this contract that:

Contractor has not been convicted of a Federal felony within the last 24 months; or Contractor does not have any outstanding tax liability for which all judicial and administrative remedies have lapsed or been exhausted.

Reference: Sections 8113 of the Consolidated Appropriations Act, 2022 (Public Law 117-103), and similar provisions in subsequent appropriations acts.

DOT Order 4200.6 Appropriations Act Requirements for Procurement and Non-Procurement Regarding Tax Delinquency and Felony Convictions

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•

FAA 25 Termination of Contract
APPLICABILITY All contracts and subcontracts in excess of $10,000.

REQUIREMENT -
See Section 4.5 of the Agreement.

Reference: 2 CFR § 200 Appendix II(B), FAA Advisory Circular 150/5370-10, Section 80-09 Item 3A - Page 204
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FAA 26 Foreign Trade Restriction
APPLICABILITY all AIP funded projects.

REQUIREMENT -

TRADE RESTRICTION CERTIFICATION
By accepting this contract the Contractor certifies the following statements are true 1) is not owned or controlled by one or more citizens of a foreign country included in the list of countries that discriminate against U.S. firms as published by the Office of the United States Trade Representative (USTR);
2) has not knowingly entered into any contract or subcontract for this project with a person that is a citizen or national of a foreign country included on the list of countries that discriminate against U.S. firms as published by the USTR; and
3) has not entered into any subcontract for any product to be used on the Federal project that is produced in a foreign country included on the list of countries that discriminate against U.S. firms published by the USTR.

This certification concerns a matter within the jurisdiction of an agency of the United States of America and the making of a false, fictitious, or fraudulent certification may render the maker subject to prosecution under Title 18 USC Section 1001.

The Contractor must provide immediate written notice to the City if the Contractor learns that its certification or that of a subcontractor was erroneous when submitted or has become erroneous by reason of changed circumstances. The Contractor must require subcontractors provide immediate written notice to the Contractor if at any time it learns that its certification was erroneous by reason of changed circumstances.

Unless the restrictions of this clause are waived by the Secretary of Transportation in accordance with 49 CFR 30.17, no contract shall be awarded to an Offeror or subcontractor:
1) who is owned or controlled by one or more citizens or nationals of a foreign country included on the list of countries that discriminate against U.S. firms published by the USTR or 2) whose subcontractors are owned or controlled by one or more citizens or nationals of a foreign country on such USTR list or
3) who incorporates in the public works project any product of a foreign country on such USTR list.

Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render, in good faith, the certification required by this provision. The knowledge and information of a contractor is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.

The Contractor agrees it will incorporate this provision for certification without modification in all lower tier subcontracts. The Contractor may rely on the certification of a prospective subcontractor that it is not a firm from a foreign country included on the list of countries that discriminate against Item 3A - Page 205
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U.S. firms as published by USTR, unless the Contractor has knowledge that the certification is erroneous.

This certification is a material representation of fact upon which reliance was placed when making an award. If it is later determined that the Contractor or subcontractor knowingly rendered an erroneous certification, the Federal Aviation Administration (FAA) may direct through the City cancellation of the contract or subcontract for default at no cost to the City or the FAA.

Reference: 49 USC § 50104, 49 CFR part 30

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FAA
APPLICABILITY This provision applies to all AIP funded projects that involve labor to carry out the project. This preference, which excludes executive, administrative, and supervisory positions, applies to covered veterans [as defined under § 47112(c)] only when they are readily available and qualified to accomplish the work required by the project.

REQUIREMENT -
In the employment of labor (excluding executive, administrative, and supervisory positions), the Contractor and all sub-tier contractors must give preference to covered veterans as defined within Title 49 United States Code Section 47112. Covered veterans include Vietnam-era veterans, Persian Gulf veterans, Afghanistan-Iraq war veterans, disabled veterans, and small business concerns (as defined by 15 USC 632) owned and controlled by disabled veterans. This preference only applies when there are covered veterans readily available and qualified to perform the work to which the employment relates.

Reference: 49 USC § 47112(c)
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FAA 28 Domestic Preferences for Procurements
APPLICABILITY all contracts and Purchase orders for work or products under the grant.

REQUIREMENT -
The Contractor certifies by signing and submitting its bid or proposal that, to the greatest extent practicable, the Contractor has provided a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States (including, but not limited to, iron, aluminum, steel, cement, and other manufactured products) in compliance with 2 CFR § 200.322.

Reference: 2 CFR § 200.322; 2 CFR Part 200, Appendix II(L)

(1)
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ATTACHMENT B

PUBLIC INTEGRITY BUSINESS DISCLOSURE
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PUBL

IC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

1. Name of Entity

2. Address of Entity (Principal Place of Business)

3. Local or California Address (if different than #2)

4. State where Entity is Registered with Secretary of State

If other than California, is the Entity also registered in California?  Yes  No

5. Type of Entity
 Corporation  Limited Liability Company  Partnership  Trust  Other (please specify)

6. Officers, Directors, Membe rs, Managers, Tru stees, Other F iduciaries (please specify) Note: If any response is not a natural person, please identify all off icers, directors, members, managers and other fiduciaries for the member, manager, trust, or other entity
________________________  Officer  Director  Member  Manager [name]  G eneral Partner  Limited Partner
Other ___________________________
_______________________________  Officer  Director  Member  Manager [name]  General Partner  Limited Partner
 Other __________________________
_______________________
_________  Officer  Director  Member  Manager
[name]  General Partner  Limited Partner
 Other __________________________
Skanska USA Building Inc.
633 W Fifth St, 68th Floor, Los Angeles, CA 90071
389 Interpace Parkway, 5th Floor, Parsippany, NJ 07054
389 Interpace Parkway, 5th Floor, Parsippany, NJ 07054
Paul Hewins, President and CEO
Leo Sinicin, VP, Treasurer and CFO
C. Clay Haden, Chief Administrative Officer
X
X
X
X
X
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PUBLI

C INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

1. Name of Entity

2. Address of Entity (Principal Place of Business)

3. Local or California Address (if different than #2)

4. State where Entity is Registered with Secretary of State If othe
r than California, is the Entity also registered in California?  Yes  No

5. Type of Entity
 Corporation  Limited Liability Company  Partnership  Trust  Other (please specify)

6. Officers, Directors, Membe rs, Managers, Tru stees, Other F iduciaries (please specify) Note: If any response is not a natural person, please identify all off icers, directors, members, managers and other fiduciaries for the member, manager, trust, or other entity
________________________  Officer  Director  Member  Manager [name]  Gener al Partner  Limited Partner
Other ___________________________
_______________________________  Officer  Director  Member  Manager [name]  General Partner  Limited Partner
 Other __________________________
________________________
________  Officer  Director  Member  Manager
[name]  General Partner  Limited Partner
 Other __________________________
Carrie Key, Deputy CFO X
Item 3A - Page 211
r l
'
-
-
'
-
I, I
June 28, 2023

7. O wners/Investors with a 5% beneficial interest in the Applicant Entity or a related entity

EXAMPLE
JANE
DOE
[name of owner /investor]
50%, ABC C
OMPANY, Inc.
[percentage of beneficial interest in entity and
name of entity]
A.

[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
B.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
C.
[name of owner/ investor] [percentage of beneficial interest in entity and name of entity]
D.
[name of owner/investor] [p ercentage of beneficial interest in entity and name of entity]
E.
[name of owner/investor] [percentage of beneficial interest i n entity and name of entity]
I DE

CLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

Signature of Disclosing Party, Printed
Name, Title
Date
N/A
Item 3A - Page 212

CITY COUNCIL STAFF REPORT
07/24/2023
SUBJECT:

APPROVE ADDITIONAL FUNDING IN THE AMOUNT OF $2,200,000 FOR THE

DEVELOPMENT AND CONSTRUCTION OF THE MONARCH PROJECT LOCATED AT 3290 N INDIAN CANYON DR, A 60-UNIT MULTI-FAMILY PROJECT IN THE

CITY OF PALM SPRINGS
RECOMMENDATION:

Appropriate funds in the amount of $2,200,000 from Housing Set-aside resources in the Fiscal Year 2024 Budget.

1. Approve a Funding Commitment in the amount of $2,200,000 for the Community Housing Opportunities Corporation for the Monarch Apartment Homes Project, subject to terms and conditions of the Disposition and Development Agreement; and

2. Authorize the City Manager to execute a Funding Commitment Letter for the Monarch Apartment Homes Project, including making minor, non-substantive changes, and to sign all documents necessary.

3. Attachments
Item 3B

CITY COUNCIL STAFF REPORT

DATE: JULY 24, 2023 BUSINESS & LEGISLATIVE

SUBJECT: APPROVE ADDITIONAL FUNDING IN THE AMOUNT OF $2,200,000 FOR

DEVELOPMENT AND CONSTRUCTION OF THE MONARCH PROJECT
LOCATED AT 3290 N INDIAN CANYON DR , A 60 -UNIT MULTI-FAMILY

PROJECT IN THE CITY OF PALM SPRINGS

FROM: Scott C. Stiles, City Manager

BY: Community & Economic Development Department

SUMMARY:

Community Housing Opportunities Corporation (Developer), Developer of the Monarch Apartment Homes 60-unit Affordable Housing Project (Project), located at 3290 N Indian Canyon Drive, is requesting additional construction funding in the amount of $2,857,871 (Attachment A). Developer has pursued and secured funding commitments from several sources that now total $36,122,197. Unfortunately, the Project costs have increased to $39,119,796 and thus a funding gap remains. The Project is intended to house families in need of affordable housing.

RECOMMENDATION:

1. Appropriate funds in the amount of $2,200,000 from Housing Set-aside resources in the Fiscal Year 2024 Budget.

2. Approve a Funding Commitment in the amount of $2,200,000 for the Community Housing Opportunities Corporation for the Monarch Apartment Homes Project, subject to terms and conditions of the Disposition and Development Agreement; and

3. Authorize the City Manager to execute a Funding Commitment Letter for the Monarch Apartment Homes Project , including making minor, non- substantive changes, and to sign all documents necessary.

BUSINESS PRINCIPAL DISCLOSURE
:

Community Housing Opportunities Corporation is a non- profit affordable housing organization that was founded in 1984. The following are the key Principals of the Item 3B - Page 1
City Council Staff Report
July 24, 2023 -- Page 2
Monarch Apartments Funding Request
Corporation:
• Manuela Silva, Chief Executive Officer
• Keith Prewitt, Chief Operating Officer
• Peter Lundberg, Chief Financial Officer
• Vincent Nicholas, Vice-President Real Estate Development • Joy Silver, Chief Strategy Officer
• Fabiola Ortiz, Vice-President of CHOC Energy
• Terri Smyth, Vice-President Community Impact
• James Mowdy, Director of Corporate Communications
CHOC completed the City’s Public Integrity Disclosure Form, attached to this report as Attachment B
BACKGROUND:

On F
ebruary 6, 2019 , the City Council approved the Disposition and Development Agreement (DDA) for the Project. The DDA was executed on April 4, 2019.

The Project will be subject to regulatory agreements that limit the amount of rent the Developer may charge tenants. The rents must be affordable to Extremely Low -Income households, and to Low -Income households – those ranging from 30% of the Area Median Income (AMI) to 60% AMI. H ousehold incomes must be certified and documented.

Accordingly, the Developer will restrict rents for 59 of the 60 units with the anticipated distribution of:
# Units % AMI 1 person 2 people 3 people 4 people 5 people 6 people 12 units 30% AMI $19,600 $22,400 $25,200 $30,000 $35,140 $40,280 12 units 50% AMI $32,650 $37,300 $41,950 $46,600 $50,350 $54,100 35 units 60% AMI $39,180 $44,760 $50,340 $55,920 $60,420 $64,920 1 unit Manager
The Project will include 28 one- bedroom units, 16 two- bedroom units, and 16 three- bedroom units.

The Project site was identified in the Housing Element as contributing towards meeting the City’s upcoming 6th Cycle Regional Housing Needs Allocation (RHNA) requirements.

Completion of the Project will provide 24 of the City’s 545- unit Very Low -Income Household Unit production goal (0- 50% AMI); and 35 of the City’s 408- unit Low-Income Household unit production goal (50-80% AMI). The Project will also inclu de one unit for property management staff at zero rent.

Item 3B - Page 2
City Council Staff Report
July 24, 2023 -- Page 3
Monarch Apartments Funding Request

Other amenities include a community building; park (Monarch Park); shaded grove (trees and benches); tree-lined central drive; water play area for children; dog park; BBQ grills; and environmentally sensitive landscaping. The Project includes parking for 72 vehicles, five of which are designated handicapped stalls. All units will have patios and balconies with access to the community building with computer classroom, rental office, and a community lounge adjacent to a kitchen for community group functions. A laundry room is also centrally located in the community building.

The Project will be constructed with sustainable construction methods and building materials. This includes use of e nergy efficient appliances; carport roof solar panels; water efficient plumbing fixtures; and drought tolerant landscaping. Furthermore, an Electric Vehicle Charging Station will be included which will assist in reducing the project’s overall carbon footprint.

STAFF ANALYSIS:

In accordance with the DDA, the City has provided the following assistance to the Project.

Land Contribution $ 840,000
Residual Receipts Loan 1,800,000
Total $ 2,640,000

Unfortunately, the Project incurred an increase in development costs of $7 ,059,000 as indicated in Developer’s June 29, 2023, letter requesting additional funds ( Attachment A). This includes hard costs in the amount of $4,325,000 and soft costs in the amount of $2,734,000.

Despite having secured an additional $4,201,129 in funding commitments, including two supplemental bond increases, Developer advises that there is still a f unding gap of $2,857,871, which Developer is requesting from the City of Palm Springs.

Funding Sources

A comparison of the Project’s October 28, 2021, Closing Pro Forma and the July 3, 2023, Pro Forma provided by the City’s financial consultant (LeSar Development Consultants) shows additional funding sources secured by Developer in the amount of $5,305,877, as detailed in the following table.

Funding Sources Comparison

Version: 10/28/21
Closing 7/3/23 Pro Forma Increase/
(Decrease)
City Housing Successor
Fund 1,800,000 1,800,000 - Item 3B - Page 3
City Council Staff Report
July 24, 2023 -- Page 4
Monarch Apartments Funding Request

Version: 10/28/21
Closing 7/3/23 Pro Forma Increase/
(Decrease)
City Land Residual Loan 840,000 840,000 - County HOME Funds 500,000 500,000 - Bank Perm Loan (at
closing) 5,260,000 5,260,000 - Bank Perm Loan
(additional) - 1,238,064 1,238,064 LIHTC Investor 13,777,507 17,531,550 3,754,043 GP Loan - Certificated
State Tax Credits 6,186,400 6,186,400 - Deferred Developer Fee
[1] 328,000 1,307,331 979,331 GP Equity 100 200,100 200,000 GP Loan [2] 883,695 - (883,695) Credit Suisse First
Boston 1,333,600 1,333,600 - Deferred Interest on Soft
Debt 32,240 50,375 18,135 Total Funding Sources 30,941,542 36,247,419 5,305,877

[1], [2] It should be noted that the increased Deferred Developer Fee in the amount of $979,331 is offset by the reduction in the General Partner Loan (GP Loan) in the amount of $883,495. The Project Resources are also shown in the Project Pro Forma (Attachment C) and Pro Forma Comparison (Attachment D).

Soft Costs Increases

As represented by Developer, Project Soft Costs have increased by $2,734,000. Soft costs are for non-tangible items such as services, fees, and insurance. Using the October 28, 2021, closing date the analysis provided LeSar Development Consultants shows an increase of soft costs in the amount of $ 4,567,096. Some of these soft costs increases may have already been covered by the increases in funding sources.

Soft Cost Comparison

Version: 10/28/21
Closing
7/3/23 Pro
Forma
Increase/
(Decrease)
Impact Fees (School fee) 200,000 240,000 40,000 Item 3B - Page 4
City Council Staff Report
July 24, 2023 -- Page 5
Monarch Apartments Funding Request

Version: 10/28/21
Closing
7/3/23 Pro
Forma
Increase/
(Decrease)
Permits and utility hookups 50,000 344,000 294,000 Architecture 1,401,805 1,440,000 38,195 Survey, engineering 200,000 530,000 330,000 Environmental (inc. NEPA and
Phase II mitigations) 20,000 26,102 6,102 Soft cost contingency 90,181 30,000 (60,181) Prevailing wage monitoring fee 25,000 72,075 47,075 Special Inspections & Energy
Consulting - 562,000 562,000 Costs of bond issuance 610,204 966,366 356,162 Construction Loan Interest during
construction 504,765 1,360,590 855,825 Construction loan interest post
construction 490,743 523,697 32,954 Construction period interest on soft
loans 32,240 50,376 18,136 Course of Construction Insurance 300,000 432,208 132,208 Construction period taxes 20,000 20,000 - Appraisal 10,000 10,000 - Tax Credit Allocation Committee
Fees 40,843 67,160 26,317
Legal Fees - Organization 5,000 5,000 - Legal Fees- Syndication & Investor
(Due Diligence) 105,000 202,519 97,519 Legal Fees- Sponsor 30,000 39,000 9,000 Legal - Permanent loan closing 15,000 25,000 10,000 Title - Permanent loan closing 15,000 5,000 (10,000) Market Study 24,800 34,800 10,000 Consultant – Syndication 55,000 55,000 - Marketing & Lease up 30,000 22,226 (7,774) Project Audit & Tax Prep 15,000 3,380 (11,620) Operating Reserves -- 6 months 346,441 415,619 69,178 Development Fee 800,000 2,522,000 1,722,000
Item 3B - Page 5
City Council Staff Report
July 24, 2023 -- Page 6
Monarch Apartments Funding Request

Version: 10/28/21
Closing
7/3/23 Pro
Forma
Increase/
(Decrease)

Total Soft Costs 5,437,022 10,004,118 4,567,096

Notable soft cost increases are as follows:

Permits and Utility Hookups – Increase of $294,000 from $50,000 to $344,000. This is attributed to significant power design changes as requested by Southern California Edison.

Survey, Engineering – Increase of $330,000 from $200,000 to $530,000. This is due to unforeseen site conditions discovered during the early phase of construction.

Special Inspections & Energy Consulting – New cost of $562,000. For Monarch to qualify for the CEC BUILD Program, there were significant design changes and energy certifications required that follow the CEC 2022 Energy Code (including: efficient electric heat pumps, electric -ready requirements for new homes, solar photovoltaic and battery storage standards, ventilation standards, and more). Developer was not required to utilize the CEC B UILD Program. Doing so, however, helps the Project achieve the City’s Major Themes/Principles of environmental stewardship and results in long-term energy savings.

Legal Fees – Syndication & Investor (Due Diligence) – Increase of $97,519 from $105,000 to $202,519. These increases are associated with the increased time required for these and additional work related to subsequent funding allocations.

Construction Loan Interest During Construction – Increase of $855,825 from $504,765 to $1,360,590. Construction loan interest rate increased from 3.90% to

7.75%. Associated with the construction loan, there is a nationwide trend in rising insurance costs for construction projects. COVID -19 delays also required extending insurance coverage for longer than originally expected.

Development Fee – Increase of total fee by $1,722,000 from $800,000 to $2,522,000.

This fee contains two portions: the deferred fee and the “at-risk” fee. The deferred fee is the fee which the developer will be paid from normalized operations from property cash flow once: A) the project is leased, and B ) the project is refinanced, thereby repaying the construction loan (a process also known as “conversion”). The at-risk fee is scheduled to be paid through escrow as part of the refinance (a.k.a., conversion) process; meaning that if other components of a project exceeded budget, then the at- risk fee may be used to cover cost overruns. The at -risk portion of the developer fee is shown separately in the Additional Information section of Attachment D . It increased by $742,669 from $472,000 to $1,214,669.

Item 3B - Page 6
City Council Staff Report
July 24, 2023 -- Page 7
Monarch Apartments Funding Request

An annotated analysis of the soft cost increases is provided in Attachment D.

Hard Costs Increases

Hard costs are associated with the physical construction of the Project such as building materials, site work, and labor. Developer has indicated the Project is being impacted by increased hard costs in the amount of $4,325,000. The LeSar analysis shows an increase of hard costs in the amount of $3,384,559. The difference in these amounts does not indicate Developer’s estimate is overstated, but rather their allocations of soft and hard costs may be different.

Hard Cost Comparison

Hard Costs 10/28/21
Closing
7/3/23 Pro
Forma
Increase/
(Decrease)
Demolition 71,048 71,048 - Offsite work 215,805 215,805 - Site work 2,881,415 3,000,000 118,585 New construction 16,686,224 20,315,000 3,628,776 Contractor general requirements,
overhead, profit, bond/insurance
2,762,444 3,000,000 237,556
Photovoltaics 648,000 1,000,000 352,000 Personal Property in Construction
Contract
182,225 182,225 -
Furniture Purchased by Owner 40,000 110,000 70,000 Construction contingency 1,172,358 150,000 (1,022,358) Total Hard Costs 24,659,519 28,044,078 3,384,559

Notable hard cost increases are as follows:

Site Work - Increase of $118,585 from $2,881,415 to $3,000,000. This represents an increase of 4% and is reasonable given the additional time and increased costs associated with this Project.

New Construction – Increase of $3,628,776 from $16,686,224 to $20,315,000. In addition, Statewide trends in unexpected and significant increases in construction costs are documented by the Terner Center for Housing Innovation. 1 1 https://ternercenter.berkeley.edu/research-and-policy/cost-to-build-housing-legislation-2022/ Item 3B - Page 7
City Council Staff Report
July 24, 2023 -- Page 8
Monarch Apartments Funding Request

General Contractor Requirement - Increase of $237,556 from $2,762,444 to $3,000,000.

Photovoltaics – Increase of $352,000, from $648,000 to $1,000,000. These increased costs are associated with the Project’s use of the CEC BUILD Program.

Solar, sustainability, and energy costs were an additional $2.5 million associated with Energy code changes. Developer was not required to utilize the CEC Build Program.

Doing so however, helps the Project achieve the City’s Major Themes/Principles of environmental stewardship. In addition, global supply disruptions related to switchgear increased material costs and extended construction timelines.

Construction contingency – Reduced by $1,022,358 from $1,172,358 to $150,000.

The contingency line item is understandably reduced as it is utilized.

An annotated analysis of the hard cost increases is provided in Attachment D.

Actual Remaining Funds and Remaining Contract Balance

A review of the construction resources ( Attachment E) shows an adjusted rem aining balance of funds (total resources minus amount drawn to date, minus interest reserves) to be $10,284,276 as shown in the “Available Sources” section, Total Column for “Adjusted Rem. (Remaining) Balance”.

The remaining balance on the General Contractor Contract and Solar Contract inclusive of pending change orders (in the “Costs left to finish the project” section) are $10,126,914, and $643,041 respectively, which total $10,769,955.

This review indicates that there is a deficit funds available to cover the costs of the remaining work on the General Contractor Contract and Solar Contract in the amount of $485,679. Thus, to complete the Project, it would require $485,679 of additional funds.

The Project, however, would also need additional funds to comfortably pass the Federal Tax Credit 50% Test (discussed in the following section).

Assuming the City provides the additional funds in the amount of $2,200,000 and Developer is successful in securing the Third Supplemental Bond, the Project would generate a surplus of funds in the amount of $667,074, as shown in the “New 3 rd
Supplemental Bond” section of Attachment E. Thus, to avoid providing more funding than the Project needs, the surplus amount of $667,074 has been subtracted from the request of $2,857,871 to $2,190,797, which has been rounded up to $2,200,000. The calculations are shown on Attachment E.

Based on this approach, Developer would have sufficient funds to complete the Project and to pass the Federal Tax Credit 50% Test.

Item 3B - Page 8
City Council Staff Report
July 24, 2023 -- Page 9
Monarch Apartments Funding Request

Federal Tax Credit 50% Test

For projects receiving Low Income Housing Tax Credits, the Federal Internal Revenue Code (IRC) requires at least 50% of the cost of the development be financed with the tax- exempt portion of the construction loans via tax -exempt bonds. After the project is complete, a cost certification will be conducted (as required by investors) to determine the final percentage. If it is not 50% or greater, and the Project will not meet the IRC requirements, the tax credits purchased by investors may be invalidated. If the tax credits are invalidated, the tax credit investors would not be able to utilize the tax credits to offset their tax liabilities and would likely pursue remedies for damages or reductions to their investment which would further exacerbate the budget shortfall.

Providing the additional City financing at conversion (for permanent financing after construction) increases the numerator of the percentage equation which increases the overall percentage (i.e., bond financing is the numerator and development costs are the denominator for the percentage).

Page 3 ends

funding the project will be approximately 48.58 %, failing the 50% test. With $2,200,000 of additional funds the Project is expected to score 5 1.13% to 52.00%, passing the 50% test as shown in Attachment E, “Test” row. However, these percentages offer very little margin for passing the 50% test.

Should the project not meet the 50% test requirement, Developer could request the investor help solve the problem before taking more drastic measures. This would be like a loan “workout” to restructure terms and c onditions. Developer could also ask the investor to delay the commencement of taking the tax credits, i.e., postponing the first tax credit year. In this case the investor will reduce the size of the investment and Developer will have to make up the difference.

Cost Per Unit Comparison

In comparison to other affordable housing projects in the City of Palm Springs, the Project received a lower amount of City financial assistance on a per unit basis. As noted above, the Project received $2,640,000 in assistance from the City. This is equivalent to $44,000 per unit (60 units). The Vista Sunrise II project (61 units) received $3,600,000 which is $59,016 per unit. The Aloe Palm Canyon project (71 units) received $7,004,300 which is $98,652 per unit. Developer’s Placita Dolores Huerta Apartments Project in the City of Coachella received city financial assistance in the amount of $67,750 per unit. Other examples of tax credit projects throughout California have received local contributions ranging from $41,000 per unit (Crossings at Palm Desert) to $218,000 per unit (Day Creek Crossing, San Jose). Increasing financial assistance for the Project would increase the level of assistance per unit to $80,666.

At the time of this report, the Monarch Apartment Homes project is at 70% complet ion, Item 3B - Page 9
City Council Staff Report
July 24, 2023 -- Page 10
Monarch Apartments Funding Request

with initial buildings scheduled to begin occupancy in August to 20 families. Completion of the remaining buildings would provide housing for 40 additional families. At the current construction pace, the construction loan could be exhausted by October.

Pending Request

As noted above, the request from Developer is for an additional $2,857,871. After a considerable amount of review and analysis (as discussed above), staff believes an appropriate amount to contribute to the Project is $2,200,000.

Developer, however, has represented that the entire $2,857,871 request, which is $657,871 more than the $2,200,000 being recommended, is required for the Project ’s completion. Staff has offered to continue working with the Developer to have them provide documentation and substantiate the need for the additional $657,871 of financial assistance, and to request of City Council at a future date to approve the additional funding if warranted.

Staff believes there are other resources and tools Developer may utilize to address the need for additional funding and the 50% requirement. These include:

• Funding reserves prior to conversion to increase the 50% test numerator. In doing so, the reserves will be the construction loan instead of perm anent sources of funding.

• The General Partner, Community Housing Opportunities Corporation, could make a loan to the Project.

• Fund some conversion costs early.

• Defer the first credit year.

A Funding Commitment Letter for the additional
$2,200,000 (Attachment F) has already
been provided to Developer but is subject to City Council approval of this item. The additional funds would leverage the investment of $39,119,796 for affordable housing in the City of Palm Springs to address the needs of low-income individuals and families.

The City Attorney has advised staff that the City has no legal obligation to increase the current $2,640,000 loan.

ENVIRONMENTAL ASSESSMENT
:

Pursuant to Senate Bill 35 (SB35), the requested City Council action is exempt from the California Environmental Quality Act (CEQA). Additionally, the P roject is exempt from CEQA as an affordable housing project that meets criteria found in Sections 15192 and15194 of the CEQA Guidelines.

Item 3B - Page 10
City Council Staff Report
July 24, 2023 -- Page 11
Monarch Apartments Funding Request

ALIGNMENT WITH STRATEGIC PLANNING:

This action would further Strategy 1C, Quality of Life, Action for affordable housing development. The Project also implements the Strategic Plan’s Major Themes / Principles of social equity and environmental stewardship.

FISCAL IMPACT
:

Approval of this item would appropriate $2,200,000 from Housing Set-aside resources in the Fiscal Year 2024 Budget and allocate this amount for the Monarch Apartment Homes Project increasing the amount of the current DDA from $2,640,000 to $4,840,000.

REVIEWED BY:

Department Director: Jay Virata
Deputy City Manager: Flinn Fagg
City Manager: Scott Stiles

ATTACHMENTS:

A. Monarch Apartment Homes Request for Supplemental Funding B. Community Housing Opportunities Corporation Business Disclosure C. Project Pro Forma
D. Pro Forma Comparison
E. Available Resources vs Open Construction Expenses
F. Draft Funding Commitment Letter

Item 3B - Page 11

ATTACHMENT A

Item 3B - Page 12
The Monarch Butterfly
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www.chochousing.org

June 29, 2023
Mr. Scott Stiles
City Manager
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262

Re: Request for $2.9M City Loan Increase to complete construction of Monarch Apartment Homes

Dear Mr. Stiles,
This is a ƌĞƋƵĞƐƚĨŽƌΨϮ͘ϵDŝƚǇ>ŽĂŶIncrease ƚŽĐŽŵƉůĞƚĞĐŽŶƐƚƌƵĐƚŝŽŶŽĨDŽŶĂƌĐŚƉĂƌƚŵĞŶƚ,ŽŵĞƐ͘

For background, construction began in October 2021 with a construction budget of $31M. Since the start of construction extenuating circumstances from the global COVID 19 Pandemic (2021-2023) caused delays and significant material cost increases for steel, lumber, copper, appliances, etc. It also impacted labor shortages, supply chain delays, product reselection and redesign beyond our control, causing construction cost adjustments and overruns in the amount of $7M.

Project Cost Overruns:
x $2,734,000 Soft Cost Overruns
x $4,325,000 Hard Construction Cost Overruns
x Ψϳ͕Ϭϱϵ,000 Total Cost Overruns

CHOC has identified and secured commitments for $4M. The remaining balance and current funding gap represents our request of city funds $2.9M.

ŽŵŵŝƚƚĞĚ^ources:
¾ $1,263,000 Project Contingency
¾ $1,517,672 Supplemental Bond #1 Increase July 2022
¾ $1,420,457 Supplemental Bond #2 Increase March 2023
¾ Ψϰ͕ϮϬϭ͕ϭϮϵdŽƚĂůŽŵŵŝƚƚĞĚ^ŽƵƌĐĞƐ ^ĞĐƵƌĞĚ

Gap &ŝŶĂŶĐŝŶŐEĞĞĚĞĚ:
x $7,059,000 Total Cost Overruns Above
x ($4,201,129) Less Total Committed Sources Above
¾ ΨϮ͕ϴϱϳ͕ϴϳϭ 'ĂƉ&ŝŶĂŶĐŝŶŐŶĞĞĚĞĚĨƌŽŵƚŚĞity

Item 3B - Page 13
Page Ϯ of Ϯ

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The project is now 70% complete. Initial buildings are scheduled to start occupancy in August that will provide housing for 20 families. Completion of remaining buildings that provide housing for 40 families will not happen unless we secure the additional funds from the city. ƚƚŚĞĐƵƌƌĞŶƚĐŽŶƐƚƌƵĐƚŝŽŶƉĂĐĞ͕ǁĞ estimate the cŽŶƐƚƌƵĐƚŝŽŶůŽĂŶǁŝůůďĞĞǆŚĂƵƐƚĞĚďǇOctober, at which time the contractor will cease work.

OĐĐƵƉĂŶĐǇĂŶĚConstruction Timeline:
¾ August 2023 – Occupancy 20 families
¾ October ϮϬϮ3 – ŽŶƐƚƌƵĐƚŝŽŶ>ŽĂŶ
ǆŚĂƵƐƚĞĚ
a. Construction will cease without the City $2.9M loan Increase b. Construction will continue wŝƚŚŝƚǇΨϮ͘ϵDůŽĂŶ Increase

The Construction Lender Flagstar Bank will increase the construction loan by $2.9M, same terms and conditions, upon evidence of a commitment from the city guaranteeing availability of the funds at loan conversion.

&ƵŶĚŝŶŐdŝŵĞůŝŶĞ:
¾
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¾ August 2023 – Closing Construction Loan Increase
¾ December 2023 – Project Completion and 100% unit occupancy

Please let me know if you have any questions. I look forward to discussing next steps to secure the city financing commitment.

Sincerely,

Vincent J. Nicholas
VP Real Estate Development

CC: Jay Virata, City of Palm Springs
Manuel Silva, CEO, CHOC
Peter Lundberg, CFO, CHOC
Joy Silver, CSO, CHOC

Sincerely,
Vincent J. Nicholas
Item 3B - Page 14

ATTACHMENT B

Item 3B - Page 15

ATTACHMENT C

Item 3B - Page 19
CHOC- The Monarch Apartment Homes
Allocated State Credits
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Project Name: The Monarch Apartment Homes Site Address: 3130 N Indian Canyon Drive, Palm Springs CA

SOURCES OF FUNDS AMOUNT CONSTRUCTION TERMS INTEREST RATE Perm Loan - Amount at Construction Closing 5,260,000 tax exempt loan18/35 year amortization (10 yr Tr.,130 bps floor+288 bps ) 4.26% Perm Loan - Amended Amount 1,238,064 tax exempt loan18/35 year amortization (10 yr Tr.+288 bps ) 6.85% City of Palm Springs - Additional Gap Loan 0 1% simple interest 55 year RR loan 0.80% City of Palm Springs- Housing Successor Fund 1,800,000 1,710,000 1% simple interest 55 year RR loan 0.80% 30,000 30,000 accrued interest during construction
City of Palm Springs- Land Residual Loan 840,000 840,000 1% simple interest 55 year RR loan 0.80% 14,000 14,000 accrued interest during construction Schedule Riverside County- HOME 500,000 450,000 1% simple interest 55 year RR loan 0.80% Construction Loan Close 29-Oct-21 6,375 6,375 accrued interest during construction 100% Construction Completion 1-Dec-23 Credit Suisse Loan 1,333,600 1,333,600 0% simple interest 55 year DEF loan 0.00% Construction Period 25.0 GP or Sponsor Loan- Certificated State Credits 6,186,400 3% simple interest 55 year RR loan 1.79% 100% Occupancy 31-Dec-23 Net Developer Fee 1,014,569 0 0.00% Perm Conversion 1-Apr-24 Deferred Developer Fee 1,307,331 Perm Period 4.0
GP Equity 200,100 100 Issuance of 8609 1-Jan-25
Construction Loan- Tax Exempt Bond + Supplemental 18,114,846 18,114,846 22 months, tax exempt construction loan 1 M LIBOR, floor of .5% + 160 bps + 1% cush 4.7900% Construction Loan- Taxable Tail Bond 8,859,693 11,645,525 11,645,525 0.880 State (Certificated) Cred6,186,400 + 285 bps + 1% cus 6.0400% Construction Loan/TDC 76.13% Limited Partner @ 99.99% -2,785,832 17,531,550 1,977,751 0.900 PV Credit 269,973 13,777,507 0.920 Federal credits 17,261,577
TOTAL SOURCES 66,007,790 36,122,197 IRR 7.93% Bond Amount 29,760,370 Gap/Surplus (2,845,777) 50% TEST
TOTAL DEVELOPMENT COST NET OF CONSTRUCTION LOAN 39,093,196 4.21% Land Basis 1,200,632 BASIS FOR BASIS FOR NON Building Basis 36,085,501
USES OF FUNDS TOTAL COST CONSTRUCTION DEPRECIABLE 4% CREDIT PV CREDIT AMORTIZED DEPRECIABLE Total 37,286,133

48.58%
Land Cost or Value 840,000 840,000 0 840,000 Tax Exempt Bond - Initial Award 15,176,717 Legal and closing costs 5,000 5,000 5,000 Tax Exempt Bond - Supplemental - Awarded 1,517,672 Carrying costs prior to construction start 0 0 0 Tax Exempt Bond - Supplemental 2 - Awarded 1,420,457 Acq loan interest/ fees 0 0 0 Tax Exempt Bond - Supplemental3 - Requested 0 Demolition Total Contract: 71,048 71,048 71,048 Taxable Tail 11,645,525 Offsite work 26,984,078 215,805 215,805 215,805 215,805 50.1% of Basis 18,680,353 Site work 3,200,000 3,200,000 2,915,416 2,915,416 284,584 New construction Solar 20,315,000 20,315,000 20,315,000 20,315,000 86.2% GC Construction Contingency 1,000,000 0 0 0 0 COSTS OF ISSUANCE 29,760,370 Contractor general requirements, overhead, profit, bond/insurance 12.01% 3,000,000 3,000,000 3,000,000 3,000,000 63,209 CMFA = issuer at max bond amt Photovoltaics 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Bond Counsel 111,567 Personal Property in Construction Contract 182,225 182,225 182,225 182,225 Bank Counsel 110,000 Furniture Purchased by Owner 110,000 110,000 110,000 110,000 Issuer Fee 55,801 Construction contingency 0.54% 150,000 150,000 150,000 150,000 6,321 Issuer app/legal 10,000 Impact Fees (School fee) 240,000 240,000 240,000 240,000 10,113 Issuer Montoring Fee 35,960 Permits and utility hookups 344,000 344,000 344,000 344,000 14,496 0 CDLAC 10,416 Architecture 1,440,000 1,440,000 1,440,000 1,440,000 60,681 CDIAC 4,464 Survey, engineering 530,000 530,000 530,000 530,000 22,334 Consultant 0 Environmental (inc. NEPA and Phase II mitigations) 26,102 26,102 26,102 26,102 Attorney 100,000 Soft cost contingency 30,000 30,000 30,000 30,000 Title costs 119,074 Prevailing wage monitoring fee 72,075 72,075 72,075 72,075 3,037 Const loan fee @ 1% 297,604 Special Inspections & Energy Consulting 562,000 562,000 562,000 562,000 Const lender costs 36,500 Predevelopment Loan Interest 0 0 0 0 Perm loan fee + Expenses ($10K) 74,981 Construction Loan Fees and costs- in COI 0 0 0 0 TOTAL 966,366 Costs of bond issuance 966,366 966,366 571,705 571,705 394,661 Eligible Bais Calc in COI 571,705 City loan fee 0 0 0
County Loan fee 0 0 0
Construction Loan Interest during construction - 25 months 1,360,590 1,360,590 1,360,590 1,360,590 57,334 Construction loan interest post construction - 4 months 523,697 523,697 523,697 Construction period interest on soft loans 50,376 50,376 36,375 36,375 2,123 14,000 Construction lender legal - in COI 0 0 0 0
Course of Construction Insurance 432,208 432,208 432,208 432,208 18,213 DEVELOPER FEE LIMITS Construction period taxes 20,000 20,000 20,000 20,000
Appraisal 10,000 10,000 10,000 10,000 TCAC 4%
Tax Credit Allocation Committee Fees 67,160 67,160 67,160 0 Max. in the Budget 5,034,525 Legal Fees - Organization 5,000 5,000 5,000 Max. Upfont 2,500,000 Legal Fees - Construction Loan Closing - in COI 0 0 0 0 Legal Fees- Syndication & Investor (Due Diligence) 202,519 202,519 202,519 Legal Fees- Sponsor 39,000 39,000 39,000
Capitalized Asset Management Fee 0 0 0
Utilities 0 0 0 0
Legal - Permanent loan closing 25,000 25,000
Title - Permanent loan closing 5,000 5,000
Market Study 34,800 34,800 34,800
Consultant - Syndication 55,000 55,000 55,000
Title & Escrow - Construction financing - included in COI 0 0 0 0 0 Marketing & Lease up 22,226 22,226 22,226
Project Audit & Tax Prep 3,380 3,380
Operating Reserves -- 6 months 415,619 415,619
Development Fee 2,522,000 0 2,522,000 2,522,000 106,275 Repayment of Construction Loan-Bond 18,114,846 18,114,846 Repayment of Construction Loan- taxable tail 11,645,525 0 11,645,525 TOTAL PROJECT COSTS 68,853,567 36,122,197 36,085,501 36,085,501 1,000,000 1,085,125 31,682,941 Item 3B - Page 20
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87 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Utility Allowances: 1BR 2BR 3BR
INCOME, EXPENSES, AND CASH FLOW ANALYSIS Placed in Service 12/1/2023 QUAC 19.75 23.16 30.51 Riverside County HA 7/31/22 EE 61.0 83.0 106.0
Unit Size Factor # of Gross Annual 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Units UA 2023 Rents Base Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 1BR 30% ami - Section 8 2.00% 5 61.00 524 27,780 13,890 28,058 28,619 29,191 29,775 30,371 30,978 31,598 32,230 32,874 33,532 34,202 34,886 35,584 36,296 37,022 37,762 38,517 39,288 40,073 1BR 50% ami - Section 8 2.00% 6 61.00 874 58,536 29,268 59,121 60,304 61,510 62,740 63,995 65,275 66,580 67,912 69,270 70,655 72,069 73,510 74,980 76,480 78,009 79,570 81,161 82,784 84,440 1BR 50% ami 2.00% 3 20.00 874 30,744 15,372 31,051 31,672 32,306 32,952 33,611 34,283 34,969 35,668 36,382 37,109 37,852 38,609 39,381 40,168 40,972 41,791 42,627 43,480 44,349 1BR 60% ami 2.00% 14 20.00 1,049 172,872 86,436 174,601 178,093 181,655 185,288 188,993 192,773 196,629 200,561 204,573 208,664 212,837 217,094 221,436 225,865 230,382 234,990 239,689 244,483 249,373

2BR 30% ami - Section 8 2.00% 5 83.00 629 32,760 16,380 33,088 33,749 34,424 35,113 35,815 36,531 37,262 38,007 38,767 39,543 40,334 41,140 41,963 42,802 43,658 44,532 45,422 46,331 47,257 2BR 50% ami - Section 8 2.00% 2 83.00 1,048 23,160 11,580 23,392 23,859 24,337 24,823 25,320 25,826 26,343 26,870 27,407 27,955 28,514 29,085 29,666 30,260 30,865 31,482 32,112 32,754 33,409 2BR 50% ami 2.00% 1 23.00 1,048 12,300 6,150 12,423 12,671 12,925 13,183 13,447 13,716 13,990 14,270 14,556 14,847 15,144 15,446 15,755 16,070 16,392 16,720 17,054 17,395 17,743 2BR 60% ami 2.00% 7 23.00 1,258 103,740 51,870 104,777 106,873 109,010 111,191 113,414 115,683 117,996 120,356 122,763 125,219 127,723 130,278 132,883 135,541 138,252 141,017 143,837 146,714 149,648

3BR 30% ami - Section 8 2.00% 5 106.00 727 37,260 18,630 37,633 38,385 39,153 39,936 40,735 41,549 42,380 43,228 44,093 44,974 45,874 46,791 47,727 48,682 49,655 50,649 51,661 52,695 53,749 3BR 50% ami - Section 8 2.00% 1 106.00 1,211 13,260 6,630 13,393 13,660 13,934 14,212 14,497 14,787 15,082 15,384 15,692 16,005 16,326 16,652 16,985 17,325 17,671 18,025 18,385 18,753 19,128 3BR 50% ami 2.00% 1 31.00 1,211 14,160 7,080 14,302 14,588 14,879 15,177 15,481 15,790 16,106 16,428 16,757 17,092 17,434 17,782 18,138 18,501 18,871 19,248 19,633 20,026 20,426 3BR 60% ami 2.00% 9 31.00 1,454 153,684 76,842 155,221 158,325 161,492 164,722 168,016 171,376 174,804 178,300 181,866 185,503 189,213 192,998 196,858 200,795 204,811 208,907 213,085 217,347 221,694 Manager - 2 BR 0.00% 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total 0.00% 60 680,256 340,128 687,059 700,800 714,816 729,112 743,694 758,568 773,740 789,214 804,999 821,099 837,521 854,271 871,356 888,784 906,559 924,690 943,184 962,048 981,289 Laundry 2.00% 7,200 3,600 7,344 7,491 7,641 7,794 7,949 8,108 8,271 8,436 8,605 8,777 8,952 9,131 9,314 9,500 9,690 9,884 10,082 10,283 10,489 Residential Vacancy 5.00% (Year 1 10%) -34,373 -34,373 -34,720 -35,415 -36,123 -36,845 -37,582 -38,334 -39,101 -39,883 -40,680 -41,494 -42,324 -43,170 -44,034 -44,914 -45,812 -46,729 -47,663 -48,617 -49,589 Effective Gross Income 653,083 309,355 659,682 672,876 686,334 700,060 714,061 728,343 742,910 757,768 772,923 788,382 804,149 820,232 836,637 853,370 870,437 887,846 905,603 923,715 942,189 Lower of reasonable rent or 110% of FMR - UA (NET)
Project Based Section 8 income 2022 FMR per RFP
1BR 30% ami - Section 8 2.00% 5 1,216 753 45,180 22,590 45,632 46,544 47,475 48,425 49,393 50,381 51,389 52,417 53,465 54,534 55,625 56,737 57,872 59,030 60,210 61,414 62,643 63,896 65,173 2BR 30% ami - Section 8 2.00% 5 1,529 983 58,980 29,490 59,570 60,761 61,976 63,216 64,480 65,770 67,085 68,427 69,796 71,191 72,615 74,068 75,549 77,060 78,601 80,173 81,777 83,412 85,080 3BR 30% ami - Section 8 2.00% 5 2,108 1,487 89,220 44,610 90,112 91,914 93,753 95,628 97,540 99,491 101,481 103,511 105,581 107,692 109,846 112,043 114,284 116,570 118,901 121,279 123,705 126,179 128,702 1BR 50% ami - Section 8 2.00% 6 1,216 403 29,016 14,508 29,306 29,892 30,490 31,100 31,722 32,356 33,003 33,664 34,337 35,024 35,724 36,439 37,167 37,911 38,669 39,442 40,231 41,036 41,856 2BR 50% ami - Section 8 2.00% 2 1,529 564 13,536 6,768 13,671 13,945 14,224 14,508 14,798 15,094 15,396 15,704 16,018 16,339 16,665 16,999 17,339 17,685 18,039 18,400 18,768 19,143 19,526 3BR 50% ami - Section 8 2.00% 1 2,108 1,003 12,036 6,018 12,156 12,399 12,647 12,900 13,158 13,422 13,690 13,964 14,243 14,528 14,819 15,115 15,417 15,726 16,040 16,361 16,688 17,022 17,362 Total Section 8 24 247,968 123,984 250,448 255,457 260,566 265,777 271,093 276,514 282,045 287,686 293,439 299,308 305,294 311,400 317,628 323,981 330,460 337,070 343,811 350,687 357,701 Vacancy 5.00% -12,398 -6,199 -12,522 -12,773 -13,028 -13,289 -13,555 -13,826 -14,102 -14,384 -14,672 -14,965 -15,265 -15,570 -15,881 -16,199 -16,523 -16,853 -17,191 -17,534 -17,885 EGI Section 8 incremental income 235,570 117,785 237,925 242,684 247,537 252,488 257,538 262,689 267,943 273,301 278,767 284,343 290,030 295,830 301,747 307,782 313,937 320,216 326,620 333,153 339,816 TOTAL PROJECT EGI 888,653 427,140 897,608 915,560 933,871 952,549 971,599 991,031 1,010,852 1,031,069 1,051,691 1,072,724 1,094,179 1,116,062 1,138,384 1,161,151 1,184,374 1,208,062 1,232,223 1,256,868 1,282,005 928,224
OPERATING EXPENSES 3.00% per unit 5,591 335,475 167,738 345,539 356,705 367,383 378,380 389,707 401,375 413,392 425,770 438,519 451,650 465,176 479,107 493,456 508,236 523,459 539,140 555,291 571,927 589,061 Services coordinator 3.00% per unit 1,250 75,000 37,500 77,250 79,568 81,955 84,413 86,946 89,554 92,241 95,008 97,858 100,794 103,818 106,932 110,140 113,444 116,848 120,353 123,964 127,682 131,513 Bond issuer annual monitoring fee 0.00% 0.050% 4,000 2,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 County Monitoring fee 0.00% 4,000 2,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 NET INCOME 470,178 217,903 466,818 471,287 476,534 481,755 486,946 492,103 497,220 502,292 507,314 512,280 517,185 522,023 526,787 531,471 536,068 540,569 544,968 549,258 553,430 Debt Service on First Mortgage 382,763 0 287,072 382,763 382,763 382,763 382,763 382,763 382,763 382,763 382,763 382,763 382,763 382,763 382,763 382,763 382,763 382,763 382,763 382,763 382,763 Replacement Reserve 500 30,000 15,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 Net Cash Available 57,414 202,903 149,746 58,524 63,771 68,992 74,183 79,340 84,456 89,528 94,550 99,517 104,422 109,260 114,024 118,708 123,304 127,806 132,205 136,495 140,667 DCR 1.15 1.52 1.15 1.17 1.18 1.19 1.21 1.22 1.23 1.25 1.26 1.27 1.29 1.30 1.31 1.32 1.33 1.35 1.36 1.37

USES OF AVAILABLE CASH
Payment of investor asset management fee 3.00% 5,000 2,500 5,175 5,356 5,544 5,738 5,938 6,146 6,361 6,584 6,814 7,053 7,300 7,555 7,820 8,093 8,377 Payment of Deferred Developer Fee 1,307,331 0 1,307,331 200,403 144,571 53,168 58,227 63,254 68,245 73,193 78,095 82,944 87,736 92,464 97,122 101,705 106,204 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Payment of Partnership Management Fee 3.00% 25,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 110,614 114,928 127,806 132,205 136,495 140,667 Residual receipts to City- Housing Fund 28.66% 50% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Residual receipts to City- Additional Gap 0.00% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Residual receipts to City- Land Loan 13.38% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Residual receipts to County 7.96% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sponsor 50% Share of Residual Receipts 50.00% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 General Partner 90.00% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Limited Partner 10.00% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Proportion of First Year First Year Ratio 50.00% 6.0 months Annual
ANNUAL OPERATING BUDGET Base Year
Management Fee 3.00% 44,415 22,208 45,747 47,120 48,533 49,989 51,489 53,034 54,625 56,264 57,952 59,690 61,481 63,325 65,225 67,182 69,197 71,273 73,411 75,614 77,882 Administrative 3.00% 18,900 9,450 19,467 20,051 20,653 21,272 21,910 22,568 23,245 23,942 24,660 25,400 26,162 26,947 27,755 28,588 29,446 30,329 31,239 32,176 33,141 Operating & Maintenance 3.00% 62,600 31,300 64,478 66,412 68,405 70,457 72,571 74,748 76,990 79,300 81,679 84,129 86,653 89,253 91,930 94,688 97,529 100,455 103,468 106,572 109,769 Utilities 3.00% 83,000 41,500 85,490 88,055 90,696 93,417 96,220 99,106 102,080 105,142 108,296 111,545 114,891 118,338 121,888 125,545 129,311 133,191 137,186 141,302 145,541 Insurance 3.00% 32,000 16,000 32,960 33,949 34,967 36,016 37,097 38,210 39,356 40,537 41,753 43,005 44,295 45,624 46,993 48,403 49,855 51,351 52,891 54,478 56,112 Property Taxes & Assessments 2.00% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Tenant Services 3.00% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Payroll 3.00% 94,560 47,280 97,397 100,319 103,328 106,428 109,621 112,910 116,297 119,786 123,379 127,081 130,893 134,820 138,865 143,030 147,321 151,741 156,293 160,982 165,812 State Partnership Tax 0.00% 0 0 0 800 800 800 800 800 800 800 800 800 800 800 800 800 800 801 802 803 804 TOTAL OPERATING EXPENSES 335,475 167,738 345,539 356,705 367,383 378,380 389,707 401,375 413,392 425,770 438,519 451,650 465,176 479,107 493,456 508,236 523,459 539,140 555,291 571,927 589,061 Per unit 5,591
Operating reserve balance 0 415,619 419,775 423,973 428,213 432,495 436,820 441,188 445,600 450,056 454,557 459,102 463,693 468,330 473,013 477,743 482,521 487,346 492,220 497,142 Deposit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Draw on reserve for operations 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Interest on balance 1.0% 0 4,156 4,198 4,240 4,282 4,325 4,368 4,412 4,456 4,501 4,546 4,591 4,637 4,683 4,730 4,777 4,825 4,873 4,922 4,971 New balance 415,619 419,775 423,973 428,213 432,495 436,820 441,188 445,600 450,056 454,557 459,102 463,693 468,330 473,013 477,743 482,521 487,346 492,220 497,142 502,113 Replacement reserve balance 0 15,000 45,150 75,602 106,358 137,421 122,530 153,756 185,293 217,146 249,317 197,874 229,852 262,151 294,773 327,720 250,665 283,172 316,003 349,163 Deposit 15,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 Drawdown for improvements 0 0 0 0 0 45,807 0 0 0 0 83,106 0 0 0 0 109,240 0 0 0 0 Interest on balance 1.0% 0 150 452 756 1,064 916 1,225 1,538 1,853 2,171 1,662 1,979 2,299 2,622 2,948 2,185 2,507 2,832 3,160 3,492 New balance 0 15,000 45,150 75,602 106,358 137,421 122,530 153,756 185,293 217,146 249,317 197,874 229,852 262,151 294,773 327,720 250,665 283,172 316,003 349,163 382,655 Item 3B - Page 21
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SOURCES AND USES OF CAPITAL CONTRIBUTIONS AND LOAN PROCEEDS 6,498,064 1,830,000 0 854,000 506,375 18,114,846 11,645,525 1,333,600 6,186,400 1,307,331 200,100 17,531,550 First City of Palm Springs City of Palm Springs City of Palm Springs Riverside County Tax Exempt Taxable Tail Credit Suisse GP/Sponsor Loan Deferred GP LP SOURCE OF LOAN OR EQUITY Mortgage Housing Fund Additional Gap Land Loan HOME Const. Loan Const. Loan Loan Certificated State Credits Developer Fee Equity Equity Land Cost or Value 840,000 840,000 0
Legal and closing costs 5,000 5,000
Carrying costs prior to construction start 0 0
Acq loan interest/ fees 0 0
Demolition 71,048 71,048
Offsite work 215,805 215,805 0
Site work 3,200,000 3,200,000 0
New construction 20,315,000 1,710,000 450,000 5,630,269 11,044,713 1,333,600 100 146,319 GC Construction Contingency 0 0 0
Contractor general requirements, overhead, profit, bond/insurance 3,000,000 3,000,000 0 Photovoltaics 1,000,000 1,000,000 0
Personal Property in Construction Contract 182,225 182,225 0 Furniture Purchased by Owner 110,000 110,000 0
Construction contingency 150,000 150,000 0
Impact Fees (School fee) 240,000 240,000 0
Permits and utility hookups 344,000 344,000 0
Architecture 1,440,000 1,053,501 386,499
Survey, engineering 530,000 330,000 200,000
Environmental (inc. NEPA and Phase II mitigations) 26,102 26,102 0 Soft cost contingency 30,000 30,000 0
Prevailing wage monitoring fee 72,075 72,075 0
Special Inspections & Energy Consulting 562,000 562,000 0 Predevelopment Loan Interest 0 0 0
Construction Loan Fees and costs- in COI 0 0 0
Costs of bond issuance 966,366 0 966,366
City loan fee 0 0 0
County Loan fee 0 0
Construction Loan Interest during construction - 25 months 1,360,590 994,241 366,349 0 Construction loan interest post construction - 4 months 523,697 289,234 234,463 0 Construction period interest on soft loans 50,376 30,000 14,000 6,375 0 Construction lender legal - in COI 0 0 0
Course of Construction Insurance 432,208 432,208 0
Construction period taxes 20,000 20,000 0
Appraisal 10,000 10,000 0
Tax Credit Allocation Committee Fees 67,160 67,160 0
Legal Fees - Organization 5,000 5,000 0
Legal Fees - Construction Loan Closing - in COI 0 0 0
Legal Fees- Syndication & Investor (Due Diligence) 202,519 0 202,519 Legal Fees- Sponsor 39,000 39,000 0
Capitalized Asset Management Fee 0 0
Utilities 0 0 0
Legal - Permanent loan closing 25,000 25,000
Title - Permanent loan closing 5,000 5,000
Market Study 34,800 34,800 0
Consultant - Syndication 55,000 55,000 0
Title & Escrow - Construction financing - included in COI 0 0 0 Marketing & Lease up 22,226 22,226 0
Project Audit & Tax Prep 3,380 3,380
Operating Reserves -- 6 months 415,619 0 415,619
Development Fee 2,522,000 1,307,331 1,214,669
Repayment of Construction Loan-Bond 18,114,846 6,498,064 90,000 0 6,186,400 5,340,382 Repayment of Construction Loan- taxable tail 11,645,525 50,000 200,000 8,549,748 TOTAL PROJECT COSTS 68,853,567 6,498,064 1,830,000 0 854,000 506,375 18,114,846 11,645,525 1,333,600 6,186,400 1,307,331 200,100 17,531,550 Item 3B - Page 22
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CR CS CT CU CV CW

DISBURSEMENTS OF LIMITED PARTNER CAPITAL CONTRIBUTIONS
Construction 100% Permanent
Closing Construction Loan Closing 8609
Totals 10/29/2021 12/1/2023 4/1/2024 1/1/2025
1,377,751 600,000 15,530,124 23,675
Land Cost or Value 0
Legal and closing costs 5,000 5,000
Carrying costs prior to construction start 0
Acq loan interest/ fees 0
Demolition 71,048 71,048
Offsite work 0
Site work 0
New construction 146,319 146,319
GC Construction Contingency 0
Contractor general requirements, overhead, profit, bond/insurance 0 Photovoltaics 0
Personal Property in Construction Contract 0
Furniture Purchased by Owner 0
Construction contingency 0
Impact Fees (School fee) 0
Permits and utility hookups 0
Architecture 386,499 386,499
Survey, engineering 200,000 200,000
Environmental (inc. NEPA and Phase II mitigations) 0
Soft cost contingency 0
Prevailing wage monitoring fee 0
Special Inspections & Energy Consulting 0
Predevelopment Loan Interest 0
Construction Loan Fees and costs- in COI 0
Costs of bond issuance 966,366 610,204 356,162
City loan fee 0
County Loan fee 0
Construction Loan Interest during construction - 25 months 0 Construction loan interest post construction - 4 months 0 Construction period interest on soft loans 0
Construction lender legal - in COI 0
Course of Construction Insurance 0
Construction period taxes 0
Appraisal 0
Tax Credit Allocation Committee Fees 0
Legal Fees - Organization 0
Legal Fees - Construction Loan Closing - in COI 0
Legal Fees- Syndication & Investor (Due Diligence) 202,519 105,000 97,519 Legal Fees- Sponsor 0
Capitalized Asset Management Fee 0
Utilities 0
Legal - Permanent loan closing 25,000 25,000
Title - Permanent loan closing 5,000 5,000
Market Study 0
Consultant - Syndication 0
Title & Escrow - Construction financing - included in COI 0 Marketing & Lease up 0
Project Audit & Tax Prep 3,380 3,380
Operating Reserves -- 6 months 415,619 415,619
Development Fee 1,214,669 0 1,190,994 23,675
Repayment of Construction Loan-Bond 5,340,382 5,340,382 Repayment of Construction Loan- taxable tail 8,549,748 8,549,748 TOTAL PROJECT COSTS 17,531,550 1,377,751 600,000 15,530,124 23,675 Item 3B - Page 23
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75 DA DB DC DD DE DF DG DH DI DJ DK DL DM DN DO DP DQ DR DS SCHEDULE OF TAX CONSEQUENCES Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039

DEPRECIATION AMOUNT
Residential (27.5 years) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Residential (30 years) 31,877,860 487,023 1,062,595 1,062,595 1,062,595 1,062,595 1,062,595 1,062,595 1,062,595 1,062,595 1,062,595 1,062,595 1,062,595 1,062,595 1,062,595 1,062,595 1,062,595 1,062,595 Site Improvements (15 Years, 150% DB)
Site Improvements (Bonus Depreciation) 2,915,416 2,915,416 Personal Property (5 years, 200% DB)
Personal Property (Bonus Depreciation) 1,292,225 1,292,225 Residential (27.5 years) 0 0 0 0 0 0 0 0 0 0 0 0 0
Residential (30 years) 22,904 763 763 763 763 763 763 763 763 763 763 763 763 Personal Property (5 years) 0 0 0 0 0 0 0
Personal Property (Bonus Depreciation) 22,904 3,272 3,272 3,272 3,272 3,272 3,272 3,272 Residential (27.5 years) 0 0 0 0 0 0 0 0
Residential (30 years) 41,553 1,385 1,385 1,385 1,385 1,385 1,385 1,385 Personal Property (5 years) 0 0 0 0 0 0 0
Personal Property (Bonus Depreciation) 41,553 5,936 5,936 5,936 5,936 5,936 5,936 5,936 Residential (27.5 years) 0 0 0
Residential (30 years) 54,620 1,821 1,821
Personal Property (5 years) 0 0 0
Personal Property (Bonus Depreciation) 54,620 7,803 7,803 Subtotal 36,323,654 4,694,664 1,062,595 1,062,595 1,062,595 1,062,595 1,066,631 1,066,631 1,066,631 1,066,631 1,066,631 1,073,952 1,073,952 1,070,680 1,070,680 1,070,680 1,080,304 1,080,304 36,085,501
36,085,501

EXPENSED AND AMORTIZED ITEMS
Tax Credit Allocation Committee Fees 67,160 3,358 6,716 6,716 6,716 6,716 6,716 6,716 6,716 6,716 6,716 3,358 Mortgage fees 463,661 0 15,455 15,455 15,455 15,455 15,455 15,455 15,455 15,455 15,455 15,455 15,455 15,455 15,455 15,455 15,455 15,455 Organization 5,000 500 1,000 1,000 1,000 1,000 500
Marketing Cost 22,226 22,226
Project Audit & Tax Prep 3,380 3,380
Investor Asset Management fee 3.50% 2,500 5,175 5,356 5,544 5,738 5,938 6,146 6,361 6,584 6,814 7,053 7,300 7,555 7,820 8,093 8,377 Partnership Management Fee 0.00% 12,500 25,875 26,781 27,718 28,688 29,692 30,731 31,807 32,920 34,072 35,265 36,499 37,777 39,099 40,467 41,884 Subtotal 561,428 44,464 54,221 55,308 56,433 57,597 58,302 59,049 60,340 61,676 63,058 61,131 59,254 60,787 62,374 64,016 65,716 15,455 561,428

TAX CREDITS
Basis for PV Credit 1,000,000
Credit Rate 2021 30%
PV Credit Amount 300,000
Project Basis for 4% Federal Credit 36,085,501
Reduction in Basis for 50% of PV Credit 0
Adjusted Basis for Federal Credit 36,085,501
x 130% for DDA? 46,911,151 Reserved DDA Status
Amount of 4% Federal credit 18,764,460 291,892 1,876,446 1,876,446 1,876,446 1,876,446 1,876,446 1,876,446 1,876,446 1,876,446 1,876,446 1,584,554 0 Amount of state credit 7,030,000 3,247,695 3,247,695 534,610 0 Amount of PV Credit 300,000 300,000
TOTAL CREDITS 26,094,460 3,839,587 5,124,141 2,411,056 1,876,446 1,876,446 1,876,446 1,876,446 1,876,446 1,876,446 1,876,446 1,584,554 0 Proportion of First year 50% 6 credit months
Portion of 1st year for Mortgage 0% 0 mortgage months
Federal Tax Credits 1,876,446
State Tax Credits (AWARD AMOUNT) 7,030,000
Tax Credit Percentage 4.00% Floor rate
2023 Lease Up Schedule 4.00% 36,085,501 46,911,151 Year 1 Avg Occ for Year 2023 Eligible Qualified Units % Occupied
Bldg. P-I-S Units Basis Basis Credits 2023 Credits January 0 0.00% 1 9/30/2023 6,540 10.00% 6 3,608,550 4,691,115 187,645 19,027 February 0 0.00% 2 9/30/2023 4,656 10.00% 6 3,608,550 4,691,115 187,645 31,135 March 0 0.00% 3 10/31/2023 6,836 13.33% 8 4,811,400 6,254,820 250,193 27,675 April 0 0.00% Community Building - 4 6/30/2023 0 0.00% 0 - 0 - 31,135 May 0 0.00% 5 10/31/2023 6,836 13.33% 8 4,811,400 6,254,820 250,193 15,135 June-TCO 0 0.00% 6 10/31/2023 6,540 10.00% 6 3,608,550 4,691,115 187,645 16,865 July 0 0.00% 7 10/31/2023 6,540 10.00% 6 3,608,550 4,691,115 187,645 19,459 August 0 0.00% 8 6/30/2023 2,272 6.67% 4 2,405,700 3,127,410 125,096 19,459 September 0 0.00% 9 6/30/2023 2,272 6.67% 4 2,405,700 3,127,410 125,096 13,405 October 20 33.33% 10 6/30/2023 2,272 6.67% 4 2,405,700 3, 127,410 125,096 N ovember 12 53.33% 11 6/30/2023 2,272 6.67% 4 2,405,700 3, 127,410 125,096 D ecember 28 100.00% 12 6/30/2023 2,272 6.67% 4 2,405,700 3, 127,410 125,096 15. 56% Total 49,308 100% 60 36,085,501 46,911,150 1,876,446 193, 294 18,764,460
Item 3B - Page 24
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31 DY DZ EA EB EC ED EE EF EG EH EI EJ EK EL EM EN EO
ANALYSIS OF TAXABLE INCOME 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Net Operating Income 217,903 466,818 471,287 476,534 481,755 486,946 492,103 497,220 502,292 507,314 512,280 517,185 522,023 526,787 531,471 536,068 Interest on deposits 0 4,306 4,649 4,996 5,346 5,241 5,594 5,949 6,309 6,672 6,208 6,570 6,935 7,305 7,678 6,962 Deductions:

Interest on First mortgage 0 230,813 304,696 301,052 297,231 293,225 289,025 284,621 280,001 275,156 270,073 264,740 259,145 253,274 247,112 240,645 Interest on City - Housinf Fund 7,320 14,699 14,816 14,935 15,054 15,175 15,296 15,419 15,542 15,666 15,792 15,918 16,045 16,174 16,303 16,433 Interest on City- Additional Gap Loan Fund 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Interest on City - Land Loan 3,416 6,859 6,914 6,970 7,025 7,082 7,138 7,195 7,253 7,311 7,369 7,428 7,488 7,548 7,608 7,669 Interest on County- HOME 2,026 4,067 4,100 4,133 4,166 4,199 4,233 4,266 4,301 4,335 4,370 4,405 4,440 4,475 4,511 4,547 Interest on GP-Sponsor Loan 0 110,595 112,573 114,585 116,633 118,719 120,841 123,001 125,200 127,438 129,717 132,036 134,396 136,799 139,244 141,733 Constr. Int. Carryover 523,697
Depreciation 4,694,664 1,062,595 1,062,595 1,062,595 1,062,595 1,066,631 1,066,631 1,066,631 1,066,631 1,066,631 1,073,952 1,073,952 1,070,680 1,070,680 1,070,680 1,080,304 Expensed Items 44,464 54,221 55,308 56,433 57,597 58,302 59,049 60,340 61,676 63,058 61,131 59,254 60,787 62,374 64,016 65,716 Total Deductions 5,275,586 1,483,850 1,561,003 1,560,702 1,560,302 1,563,332 1,562,213 1,561,473 1,560,603 1,559,595 1,562,403 1,557,733 1,552,982 1,551,323 1,549,475 1,557,048 NET TAXABLE INCOME -5,057,684 -1,012,725 -1,085,066 -1,079,172 -1,073,202 -1,071,145 -1,064,517 -1,058,304 -1,052,002 -1,045,609 -1,043,915 -1,033,978 -1,024,023 -1,017,231 -1,010,326 -1,014,018 General Partner Share @ .01% -506 -101 -109 -108 -107 -107 -106 -106 -105 -105 -104 -103 -102 -102 -101 -101 Investor Limited Partner @ 99.99% -5,057,178 -1,012,624 -1,084,958 -1,079,065 -1,073,094 -1,071,037 -1,064,410 -1,058,198 -1,051,897 -1,045,505 -1,043,811 -1,033,875 -1,023,921 -1,017,130 -1,010,225 -1,013,916 Marginal Tax Bracket 21.00% 21.00% 21.00% 21.00% 21.00% 21.00% 21.00% 21.00% 21.00% 21.00% 21.00% 21.00% 21.00% 21.00% 21.00% 21.00% Benefits from Losses 1,062,007 212,651 227,841 226,604 225,350 224,918 223,526 222,222 220,898 219,556 219,200 217,114 215,023 213,597 212,147 212,922 Investor Limited Partner Share of Tax Credits
Federal Low-Income Credits 291,863 1,876,258 1,876,258 1,876,258 1,876,258 1,876,258 1,876,258 1,876,258 1,876,258 1,876,258 1,584,396 0 0 State Tax Credits
PV Credits 300,000
Total Tax Benefits 1,653,870 2,088,909 2,104,100 2,102,862 2,101,608 2,101,176 2,099,784 2,098,480 2,097,157 2,095,814 1,803,596 217,114 215,023 213,597 212,147 212,922 Out of Partnership - Certificated State Tax Credits
California Certificated Credits 3,247,695 3,247,695 534,610 0 0 Item 3B - Page 25
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75 EV EW EX EY EZ FA FB FC FD FE FF FG FH FI FJ FK FL
OUTSTANDING DEBT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

NONRECOURSE DEBT
First Mortgage 5,260,000 5,210,300 5,141,518 5,069,749 4,994,861 4,916,721 4,835,186 4,750,109 4,661,336 4,568,706 4,472,053 4,371,201 4,265,967 4,156,162 4,041,587 3,922,035 First Mortgage - Amended Amount 1,238,064 1,231,504 1,222,218 1,212,276 1,201,632 1,190,234 1,178,031 1,164,966 1,150,976 1,135,998 1,119,961 1,102,790 1,084,406 1,064,721 1,043,646 1,021,080 City of Palm Springs- Housing Successor Fund 1,837,320 1,852,019 1,866,836 1,881,770 1,896,825 1,912,000 1,927,296 1,942,714 1,958,256 1,973,923 1,989,714 2,005,632 2,021,677 2,037,851 2,054,154 2,070,587 City of Palm Springs- Additional Gap Loan 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 City of Palm Springs- Land Residual Loan 857,416 864,276 871,190 878,160 885,185 892,266 899,405 906,600 913,853 921,164 928,533 935,962 943,449 950,997 958,605 966,274 Riverside County- HOME 508,401 512,468 516,568 520,700 524,866 529,065 533,297 537,564 541,864 546,199 550,569 554,974 559,414 563,889 568,400 572,947 Credit Suisse 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600

RECOURSE DEBT
GP or Sponsor Loan- Certificated State Credits 6,186,400 6,296,995 6,409,568 6,524,153 6,640,786 6,759,505 6,880,346 7,003,347 7,128,547 7,255,985 7,385,702 7,517,737 7,652,133 7,788,932 7,928,176 8,069,910 Deferred developer fee owed 1,106,928 962,357 909,190 850,962 787,708 719,463 646,270 568,175 485,231 397,495 305,031 207,909 106,204 0 0 0 investor asset management fee owed 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Partnership Management Fees Owed 12,500 38,375 65,156 92,874 121,562 151,254 181,985 213,792 246,712 280,785 316,050 352,549 390,326 429,425 359,278 286,234 TOTAL DEBT 18,340,629 18,301,894 18,335,843 18,364,244 18,387,025 18,404,108 18,415,416 18,420,867 18,420,376 18,413,855 18,401,213 18,382,353 18,357,176 18,325,577 18,287,446 18,242,667 City of Palm Springs- Housing Successor Fund 0.80%
Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Interest on Last Balance 7,320 14,699 14,816 14,935 15,054 15,175 15,296 15,419 15,542 15,666 15,792 15,918 16,045 16,174 16,303 16,433 Balance 1,830,000 1,852,019 1,866,836 1,881,770 1,896,825 1,912,000 1,927,296 1,942,714 1,958,256 1,973,923 1,989,714 2,005,632 2,021,677 2,037,851 2,054,154 2,070,587 Amount Paid from Capital Contributions 0
Amount Paid from Operations 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 New Balance 1,837,320 1,852,019 1,866,836 1,881,770 1,896,825 1,912,000 1,927,296 1,942,714 1,958,256 1,973,923 1,989,714 2,005,632 2,021,677 2,037,851 2,054,154 2,070,587 City of Palm Springs- Additional Gap Loan 0.80%
Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Interest on Last Balance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Balance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Amount Paid from Capital Contributions
Amount Paid from Operations 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 New Balance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
City of Palm Springs- Land Residual Loan 0.80%
Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Interest on Last Balance 3,416 6,859 6,914 6,970 7,025 7,082 7,138 7,195 7,253 7,311 7,369 7,428 7,488 7,548 7,608 7,669 Balance 854,000 864,276 871,190 878,160 885,185 892,266 899,405 906,600 913,853 921,164 928,533 935,962 943,449 950,997 958,605 966,274 Amount Paid from Capital Contributions
Amount Paid from Operations 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 New Balance 857,416 864,276 871,190 878,160 885,185 892,266 899,405 906,600 913,853 921,164 928,533 935,962 943,449 950,997 958,605 966,274 Riverside County- HOME 0.80%
Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Interest on Last Balance 2,026 4,067 4,100 4,133 4,166 4,199 4,233 4,266 4,301 4,335 4,370 4,405 4,440 4,475 4,511 4,547 Balance 506,375 512,468 516,568 520,700 524,866 529,065 533,297 537,564 541,864 546,199 550,569 554,974 559,414 563,889 568,400 572,947 Amount Paid from Capital Contributions 0
Amount Paid from Operations 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 New Balance 508,401 512,468 516,568 520,700 524,866 529,065 533,297 537,564 541,864 546,199 550,569 554,974 559,414 563,889 568,400 572,947 Credit Suisse 0.00%
Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Interest on Last Balance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Balance 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 Amount Paid from Capital Contributions 0
Amount Paid from Operations
New Balance 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 1,333,600 GP or Sponsor Loan- Certificated State Credits 1.79%
Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Interest on Last Balance 0 110,595 112,573 114,585 116,633 118,719 120,841 123,001 125,200 127,438 129,717 132,036 134,396 136,799 139,244 141,733 Balance 6,186,400 6,296,995 6,409,568 6,524,153 6,640,786 6,759,505 6,880,346 7,003,347 7,128,547 7,255,985 7,385,702 7,517,737 7,652,133 7,788,932 7,928,176 8,069,910 Amount Paid from Capital Contributions 0
Amount Paid from Operations 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 New Balance 6,186,400 6,296,995 6,409,568 6,524,153 6,640,786 6,759,505 6,880,346 7,003,347 7,128,547 7,255,985 7,385,702 7,517,737 7,652,133 7,788,932 7,928,176 8,069,910 Deferred Developer Fee 0.00%
Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Interest on Last Balance
Total Balance 1,307,331 1,106,928 962,357 909,190 850,962 787,708 719,463 646,270 568,175 485,231 397,495 305,031 207,909 106,204 0 #REF! Amount Paid from Operations 200,403 144,571 53,168 58,227 63,254 68,245 73,193 78,095 82,944 87,736 92,464 97,122 101,705 106,204 0 0 New Balance 1,106,928 962,357 909,190 850,962 787,708 719,463 646,270 568,175 485,231 397,495 305,031 207,909 106,204 0 0 0 Item 3B - Page 26
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HW HX HY HZ IA IB IC ID IE IF IG IH II IJ IK IL IM
CAPITAL ACCOUNT ANALYSIS DURING OWNERSHIP BY LIMITED PARTNERSHIP last credit year Limited Partner Share 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Basis 37,726,979 33,067,088 32,039,244 31,011,748 29,984,601 28,911,547 27,926,415 26,895,837 25,865,618 24,835,762 23,722,345 22,768,164 21,731,251 20,697,979 19,665,080 18,522,237 Deductions from Basis -4,694,194 -1,062,489 -1,062,489 -1,062,489 -1,062,489 -1,066,524 -1,066,524 -1,066,524 -1,066,524 -1,066,524 -1,073,845 -1,073,845 -1,070,573 -1,070,573 -1,070,573 -1,080,196 Basis at end of year 33,032,785 32,004,599 30,976,755 29,949,258 28,922,112 27,845,023 26,859,891 25,829,313 24,799,094 23,769,238 22,648,500 21,694,319 20,660,678 19,627,406 18,594,507 17,442,041 Outstanding Nonrecourse Debt 11,033,697 11,003,066 10,950,835 10,895,166 10,835,885 10,772,809 10,705,744 10,634,489 10,558,830 10,478,542 10,393,391 10,303,128 10,207,492 10,106,210 9,998,992 9,885,535 Minimum Gain on Chargeback 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

CAPITAL ACCOUNT
Capital Account Balance 0 -3,521,717 11,019,458 9,934,500 8,855,435 7,782,341 6,711,304 5,646,893 4,588,696 3,536,799 2,491,294 1,447,483 413,608 0 0 0 Capital Contributions 1,977,751 15,553,799 0
Less Half PV Credit -150,000
Deductions -5,057,178 -1,012,624 -1,084,958 -1,079,065 -1,073,094 -1,071,037 -1,064,410 -1,058,198 -1,051,897 -1,045,505 -1,043,811 -1,033,875 -413,608 0 0 0 Syndication Expenses -292,290
Cash Flow 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
End of Year Capital Account -3,521,717 11,019,458 9,934,500 8,855,435 7,782,341 6,711,304 5,646,893 4,588,696 3,536,799 2,491,294 1,447,483 413,608 0 0 0 0 Minimum Gain Chargeback 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Capital Account plus Chargeback -3,521,717 11,019,458 9,934,500 8,855,435 7,782,341 6,711,304 5,646,893 4,588,696 3,536,799 2,491,294 1,447,483 413,608 0 0 0 0 CALCULATION OF TAX CONSEQUENCES ON SALE (TRANSFER) OF LIMITED PARTNERSHIP INTERESTS (outside basis) Initial Capital Account -3,079,427 11,461,747 10,376,789 9,297,725 8,224,631 7,153,593 6,089,183 5,030,986 3,979,088 2,933,584 1,889,773 855,898 442,290 442,290 442,290 Capital Contributions 1,977,751 15,553,799 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Allocated Losses during Ownership -5,057,178 -1,012,624 -1,084,958 -1,079,065 -1,073,094 -1,071,037 -1,064,410 -1,058,198 -1,051,897 -1,045,505 -1,043,811 -1,033,875 -413,608 0 0 0 Cash Flow 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Basis in Partnership Interest -3,079,427 11,461,747 10,376,789 9,297,725 8,224,631 7,153,593 6,089,183 5,030,986 3,979,088 2,933,584 1,889,773 855,898 442,290 442,290 442,290 442,290 Tax Benefits (Losses) on Sale -3,079,427 11,461,747 10,376,789 9,297,725 8,224,631 7,153,593 6,089,183 5,030,986 3,979,088 2,933,584 1,889,773 855,898 442,290 442,290 442,290 442,290 After Tax Benefits (Losses) -646,680 2,406,967 2,179,126 1,952,522 1,727,172 1,502,255 1,278,728 1,056,507 835,609 616,053 396,852 179,739 92,881 92,881 92,881 92,881 Item 3B - Page 27
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CHOC- The Monarch Apartment Homes
Allocated State Credits
7/3/2023 3:42 PM Page 9
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HX HY HZ IA IB IC ID IE IF IG IH II IJ IK

INTERNAL RATE OF RETURN (CALCULATED QUARTERLY) INTERNAL RATE OF RETURN (CALCULATED QUARTERLY) Federal Credits Only - Limited Partnership Combined Federal Credits and State Credits

DATE LOSSES CREDITS INVESTMENT NET IRR DATE LOSS CREDITS INVESTMENT INVESTMENT NET IRR Mar-21 0 Mar-21 Federal Cr State Cr
Jun-21 0 6.386% Jun-21 7.929%
Sep-21 0 Sep-21 0 0
Dec-21 1,377,751 -1,377,751 Dec-21 1,377,751 -1,377,751 Mar-22 0 Mar-22 0 0
Jun-22 0 Jun-22 0 0
Sep-22 0 Sep-22 0 0
Dec-22 0 Dec-22 0 0
Mar-23 0 Mar-23 0 0
Jun-23 354,002 197,288 551,290 Jun-23 354,002 1,279,853 1,633,855 Sep-23 354,002 197,288 551,290 Sep-23 354,002 1,279,853 1,633,855 Dec-23 354,002 197,288 600,000 -48,710 Dec-23 354,002 1,279,853 600,000 1,033,855 Mar-24 53,163 469,065 522,227 Mar-24 53,163 1,280,988 1,334,151 Jun-24 53,163 469,065 15,530,124 -15,007,897 Jun-24 53,163 1,280,988 15,530,124 6,186,400 -20,382,373 Sep-24 53,163 469,065 522,227 Sep-24 53,163 1,280,988 1,334,151 Dec-24 53,163 469,065 23,675 498,552 Dec-24 53,163 1,280,988 23,675 1,310,476 Mar-25 56,960 469,065 526,025 Mar-25 56,960 602,717 659,677 Jun-25 56,960 469,065 526,025 Jun-25 56,960 602,717 659,677 Sep-25 56,960 469,065 526,025 Sep-25 56,960 602,717 659,677 Dec-25 56,960 469,065 526,025 Dec-25 56,960 602,717 659,677 Mar-26 56,651 469,065 525,715 Mar-26 56,651 469,065 525,715 Jun-26 56,651 469,065 525,715 Jun-26 56,651 469,065 525,715 Sep-26 56,651 469,065 525,715 Sep-26 56,651 469,065 525,715 Dec-26 56,651 469,065 525,715 Dec-26 56,651 469,065 525,715 Mar-27 56,337 469,065 525,402 Mar-27 56,337 469,065 525,402 Jun-27 56,337 469,065 525,402 Jun-27 56,337 469,065 525,402 Sep-27 56,337 469,065 525,402 Sep-27 56,337 469,065 525,402 Dec-27 56,337 469,065 525,402 Dec-27 56,337 469,065 525,402 Mar-28 56,229 469,065 525,294 Mar-28 56,229 469,065 525,294 Jun-28 56,229 469,065 525,294 Jun-28 56,229 469,065 525,294 Sep-28 56,229 469,065 525,294 Sep-28 56,229 469,065 525,294 Dec-28 56,229 469,065 525,294 Dec-28 56,229 469,065 525,294 Mar-29 55,882 469,065 524,946 Mar-29 55,882 469,065 524,946 Jun-29 55,882 469,065 524,946 Jun-29 55,882 469,065 524,946 Sep-29 55,882 469,065 524,946 Sep-29 55,882 469,065 524,946 Dec-29 55,882 469,065 524,946 Dec-29 55,882 469,065 524,946 Mar-30 55,555 469,065 524,620 Mar-30 55,555 469,065 524,620 Jun-30 55,555 469,065 524,620 Jun-30 55,555 469,065 524,620 Sep-30 55,555 469,065 524,620 Sep-30 55,555 469,065 524,620 Dec-30 55,555 469,065 524,620 Dec-30 55,555 469,065 524,620 Mar-31 55,225 469,065 524,289 Mar-31 55,225 469,065 524,289 Jun-31 55,225 469,065 524,289 Jun-31 55,225 469,065 524,289 Sep-31 55,225 469,065 524,289 Sep-31 55,225 469,065 524,289 Dec-31 55,225 469,065 524,289 Dec-31 55,225 469,065 524,289 Mar-32 54,889 469,065 523,954 Mar-32 54,889 469,065 523,954 Jun-32 54,889 469,065 523,954 Jun-32 54,889 469,065 523,954 Sep-32 54,889 469,065 523,954 Sep-32 54,889 469,065 523,954 Dec-32 54,889 469,065 523,954 Dec-32 54,889 469,065 523,954 Mar-33 54,800 396,099 450,899 Mar-33 54,800 396,099 450,899 Jun-33 54,800 396,099 450,899 Jun-33 54,800 396,099 450,899 Sep-33 54,800 396,099 450,899 Sep-33 54,800 396,099 450,899 Dec-33 54,800 396,099 450,899 Dec-33 54,800 396,099 450,899 Mar-34 54,278 0 54,278 Mar-34 54,278 0 54,278
Jun-34 54,278 0 54,278 Jun-34 54,278 0 54,278
Sep-34 54,278 0 54,278 Sep-34 54,278 0 54,278
Dec-34 54,278 0 54,278 Dec-34 54,278 0 54,278
Mar-35 21,714 0 21,714 Mar-35 21,714 0 21,714
Jun-35 21,714 0 21,714 Jun-35 21,714 21,714
Sep-35 21,714 0 21,714 Sep-35 21,714 21,714
Dec-35 21,714 0 21,714 Dec-35 21,714 21,714
Mar-36 0 0 0 Mar-36 0 0
Jun-36 0 0 0 Jun-36 0 0
Sep-36 0 0 0 Sep-36 0 0
Dec-36 0 0 0 Dec-36 0 0
Mar-37 0 0 0 Mar-37 0 0
Jun-37 0 0 0 Jun-37 0 0
Sep-37 0 0 0 Sep-37 0 0
Dec-37 0 0 0 Dec-37 0 0
Mar-38 92,881 92,881 Mar-38 92,881 92,881
Item 3B - Page 28
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ATTACHMENT D

Item 3B - Page 29
Closing With Add'l City $ Without Add'l City $
Version: 10/28/2021 6/20/2023 7/3/2023
% Increase from 10/28/31
to 06/20/23
Red is noteworthy CHOC Notes LDC notes

SOURCES
City
Housing Successor Fund 1,800,000          1,800,000              1,800,000 Land Residual Loan 840,000              840,000                  840,000 Additional Gap Loan NA 2,857,410               ‐
County
HOME Funds 500,000              500,000                  500,000 Bank Perm Loan
Amount at closing 5,260,000          5,260,000              5,260,000 Amended Amount ‐                     1,238,064              1,238,064                     A good thing. This increase is the result of additional Section 8 vouchers from RivCo. This will help off‐set cost overruns
LIHTC Investor 13,777,507       17,546,517            17,531,550                  Ok; this will increase commensurately with increased costs.

GP‐Related Sources
GP Loan ‐ Certificated State Tax Credits 6,186,400 6,186,400 6,186,400 A good thing; certificating the tax credits (vs. not) increases project funding.

Deferred Developer Fee 328,000 1,307,331 1,307,331 According to CHOC, the removal of the GP Loan below ($883,695) was absorbed into this line item. Plausible, but not equal.

GP Equity 100 200,100 200,100 GP Loan 883,
695 ‐ ‐ See above re: Deferred Developer Fee.

Other
Credit Suisse First Boston 1,333,600 1,333,600 1,333,600 Mezzanine loan.

Deferred Interest on Soft Debt 32,240 50,375 50,375 Construction Loan
Tax‐Exempt Bond 15,176,717 19,405,061 18,114,846 This is the numerator of the 50% test.

Taxable Tail 8,263,283 10,381,909 11,645,525 This is a "second tranche" of taxable debt.

TOTAL SOURCES
TOTAL SOURCES 54,381,542        68,906,767            66,007,790                  27% TOTAL SOURCES NET OF CONSTRUCTION LOAN** 30,909,302       39,119,796            39,093,196 SHORTFALL ‐                     ‐                           2,845,777 USES
Acquisition
Land Cost or Value 840,000              840,000                  840,000 Legal and Carrying Costs 5,000                  5,000                      5,000 Hard Costs
Demolition 71,048               71,048                    71,048 Offsite work 215,805             215,805                  215,805 Site work 2,881,415         3,200,000              3,000,000 New construction 16,686,224       20,315,000            20,315,000 GC Construction Contingency ‐                     ‐                          ‐ Contractor general requirements, overhead, profit,
bond/insurance
2,762,444         3,000,000              3,000,000                     The "rounded‐ness" of this number makes me think it is an estimate.

Photovoltaics 648,000 1,000,000 1,000,000 The "rounded‐ness" of this number ma kes me think it is an estimate.

Personal Property in Construction Contract 182,225 182,225 182,225 Furniture Purchased by Owner 40,000 110,000 110,000 ATTACHMENT D
LeSar Analysis ‐ Monarch Apartments ‐ Sources vs. Uses and other Comparisons Item 3B - Page 30
Closing With Add'l City $ Without Add'l City $
Version: 10/28/2021 6/20/2023 7/3/2023
% Increase from 10/28/31
to 06/20/23
Red is noteworthy CHOC Notes LDC notes
Construction contingency 1,172,358 150,000 150,000 Appropriate that this should be used, reduced.

Sub‐Total, Hard Costs 24,659,519 28,244,078 28,044,078 15% Soft Costs
Impact Fees (School fee) 200,000 240,000 240,000 20% Per CHOC: there are no exemptions or waiver of school fees for new residential
development. Fees were paid prior to
issuance of a building permit.

Appears that CHOC slightly under‐budgeted;
acceptable.

Permits and utility hookups 50,000 344,000 344,000 588% Per CHOC: "Significant power design changes requested by SCE occurred after
permit issuance."
This is a frequent occurrence; seems plausible.

Architecture 1,401,805 1,440,000 1,440,000 3% Survey, engineering 200,000 530,000 530,000 165% Makes me wonder what unforeseen circumstances they came ac ross.

Environmental (inc. NEPA and Phase II mitigations) 20,000 26,102 26,102 31% Soft cost contingency 90,181 30,000 30,000 ‐67% Prevailing wage monitoring fee 25,000 72,075 72,075 188% Special Inspections & Energy Consulting ‐ 562,000 562,000 100% Per CHOC, changes required to comply with CEC BUILD Program Implemented
February 2022. Included significant design
changes and energy certifications
ht
tps://www.energy.ca.gov/programs‐and‐
topics/programs/building‐energy‐
efficiency‐standards/2022‐building‐energy‐
efficiency
During a previous meeting, CHOC conceeded that this
additional cost was elective on their part.

Costs of bond issuance 610,204 966,728 966,366 58% Likely because of additional CDLAC allocations Construction Loan Interest during construction 504,765 1,391,652 1,360,590 176% To be expected with project delays Construction loan interest post construction 490,743 518,857 523, 697 6% To be expected with project delays Construction period interest on soft loans 32,240 50,376 50,376 56% To be expected with project delays Course of Construction Insurance 300,000 432,208 432,208 44% Per CHOC: "Insurance premiums increased as development progressed from vacant
land to actual building cost replacement
during construction. Due to COVID 19
cons
truction delays required extending
Part of nationwide trend in rising insurance costs for
construction projects; seems plausible and unexpected.

Construction period taxes 20,000 20,000 20,000 0% Appraisal 10,000 10,000 10,000 0% Tax Credit Allocation Committee Fees 40,843 67,177 67,160 64% Legal Fees ‐ Organization 5,000 5,000 5,000 0% Legal Fees‐ Syndication & Investor (Due Diligence) 105,000 202,519 202,519 93% Lik ely because of additional CDLAC allocations and other challenges
Legal Fees‐ Sponsor 30,000 39,000 39,000 30% Legal ‐ Permanent loan closing 15,000 25,000 25,000 67% Title ‐ Permanent loan closing 15,000 5,000 5,000 ‐67% Market Study 24,800 34,800 34,800 40% Consultant ‐ Syndication 55,000 55,000 55,000 0% Marketing & Lease up 30,000 22,226 22,226 ‐26% Project Audit & Tax Prep 15,000 3,380 3, 380 ‐77% Operating Reserves ‐‐ 6 months 346,441 415,619 415,619 20% Makes sense that this would increase with increased perm loan.

Development Fee* 800,000 2,522,000 2,522,000 215% See schedule below.* Sub‐Total, Soft Costs 5,437,022 10,030,719 10,004,118 84% Truly an extraordinary increase vs. projections.

Construction Loan Repayment
Repayment of Construction Loan (Bond) 15,176,717 19,405,061 18,114,846 Repayment of Construction Loan (Taxable Tail) 8,263,283 10,381,909 11,645,525 TOTAL USES
TOTAL PROJECT COSTS 54,381,542 68,906,767 68,653,567 CHOC's financial consultant includes the repayment of
the construction loan in the soft costs; it is netted out, below.

Item 3B - Page 31
Closing With Add'l City $ Without Add'l City $
Version: 10/28/2021 6/20/2023 7/3/2023
% Increase from 10/28/31
to 06/20/23
Red is noteworthy CHOC Notes LDC notes
TOTAL PROJECT COSTS NET OF CONSTRUCTION 30,909,302 39,119,796 39,093,196 ADDITIONAL INFORMATION
*Development Fee Schedule
At Closing ‐ ‐ ‐ At & After Conversion ("at‐risk" fee) 472,000 1,214,669 1,214,669 50% Test Projections 51.50% 52.00% 48.58%
**LeSar calculating different number for this line item in two cases:

Total Project Costs 54,381,542 68,906,767 68,653,567 Less: Repayment of Construction Loan (Bond) (15,176,717) (19,405,061) (18,114,846) Tail) (8,263,283) (10,381,909) (11,645,525) LeSar calc 30,941,541 39,119,796 38,893,196 CHOC's financial consultant (CEI) calc 30,909,302 39,119,796 39,093,196 Difference of 32,239 ‐ (200,000) Item 3B - Page 32

ATTACHMENT E

Item 3B - Page 33

ATTACHMENT E
LeSar
Original 2nd Supplemental Bond
Available Sources Costs left to finish the project
Construction Loan Tax Exempt Taxable Total GC Contract Solar Contract Total Total Loan Amount** (TxEx+Txbl) $18,114,84 6 $11,645,525 $29,760,371 $24,580,181 $923,38 9 $25,503,570 Drawn to Date $9,060,692 $7,897,597 $16,958,28 9 $16,596,124 $336,200 $16,932,324 Total Remaining Balance (A B) $9,054,15 4 $3,747,928 $12,802,082 Remaining Balance $7,984,057 $587,18 9 $8,571,246 Less: Interest Reserve $635,000 $619,190 $1,254,190 Plus: Pending Change Orders $2,142,857 $55,85 2 $2,198,709 Adjusted Rem. Balance (C D) $8,419,15 4 $3,128,738 $11,547,892 Adjusted Rem. Balance $10,126,914 $643,041 $10,769,955 TEST $777,937
**Including 2nd Supp. Alloc.

Percent Drawn 50% 96%
New 3rd Supplemental Bond
Available Sources Costs left to finish the project
Construction Loan Tax Exempt Taxable Total GC Contract Solar Contract Total Total Loan Amount* (TxEx+Txbl) $19,405,061 $10,381,90 9 $29,786,970 $24,580,181 $923,38 9 $25,503,570 Drawn to Date $9,060,692 $7,897,597 $16,958,28 9 $16,596,124 $336,200 $16,932,324 Total Remaining Balance (A B) $10,344,36 9 $2,484,312 $12,828,681 Remaining Balanc e $7,984,057 $587,18 9 $8,571,246 Less: Interest Reserve $708,726 $682,926 $1,391,652 Plus: Pending Change Orders $2,142,857 $55,85 2 $2,198,709 Adjusted Rem. Balance (C D) $9,635,643 $1,801,38 6 $11,437,029 Adjusted Rem. Balance $10,126,914 $643,041 $10,769,955 TEST 667,074$
*Including 3rd Supp. Alloc.

Requested City Commitment 2,857,871$
Request less surplus 2,190,797$
Scheduled Fee 1,214,669$
Reduced Fee 547,595$
50% test confirmation
As requested Adjusted As proposed
Numerator 19,405,061 (667,074)$ 18,737,987$
Denominator 37,317,425 (667,074)$ 36,650,351$
Test 52.00% 51.13%
Item 3B - Page 34

ATTACHMENT F

Item 3B - Page 35

City of Palm Spring s
3200 E. Tahquitz Canyon Way • Palm Springs, California 92262 Tel: (760) 323-8299 • Fax: (760) 323-8207 • Web:
www.palmspringsca.gov

July 18, 2023

Mr. Vincent Nichols
Community Housing Opportunities Corporation
5030 Business Center Drive Ste 260
Fairfield, CA 94534

RE: FUNDING COMMITMENT IN THE AMOUNT OF TWO MILLION TWO HUNDRED THOUSAND DOLLARS ($2,200,000)

Dear Mr. Nichols,
Subject to approval by the Palm Springs City Council , an additional TWO MILLION TWO HUNDRED THOUSAND DOLLARS ($2,200,000) will be made available as permanent financing for the 60-unit affordable multi-family project in the City of Palm Springs located at 3290 N Indian Canyon Drive known as the Monarch Apartment Homes.

Upon such approval, the loan amount in the Disposition and Development Agreement dated April 4, 2019, by and between Community Housing Opportunities Corporation and the City of Palm Springs and Community Housing Opportunities Corporation will be increased accordingly.

Interest rate: 3% simple annual
Term of Affordability: 55 years
Term of Loan: 57 years
Repayment: Annual payments based on residual receipts
Collateral: Deed of trust secured by the land and improvements

Should you have any questions or require additional information, please contact Jay Virata, Community and Economic Development Director, at 760 -323-8228 or by email at [email protected].

Sincerely,

Scott C. Stiles
City Manager
Item 3B - Page 36

CITY COUNCIL STAFF REPORT
07/24/2023
SUBJECT:

REQUEST FOR ACCEPTANCE OF AN INCLUSIONARY HOUSING FEASIBILITY

ANALYSIS AND A COMMERCIAL LINKAGE FEE NEXUS STUDY
RECOMMENDATION:

Accept the Inclusionary Housing Feasibility Analysis and the Commercial Linkage Fee Nexus Study and provide further direction to staff.

Attachments
Item 3C

CITY COUNCIL STAFF REPORT

DATE: JULY 24, 2023 BUSINESS & LEGISLATIVE

SUBJECT: REQUEST FOR ACCEPTANCE OF AN INCLUSIONARY HOUSING

FEASIBILITY ANALYSIS AND A COMMERCIAL LINKAGE FEE NEXUS STUDY

FROM: Scott C. Stiles, City Manager

BY: Flinn Fagg, Deputy City Manager

SUMMARY:

On September 9, 2021, the City Council discussed inclusionary housing programs and other options to increase the supply of affordable housing and directed staff to begin the preparation of studies necessary to support the possible implementation of such programs. In September 2022, an agreement was approved with the firm of Economic & Planning Systems, Inc. (EPS), to prepare an inclusionary housing study and commercial linkage fee nexus study. The studies have been completed and are ready for review and acceptance by the City Council; staff is requesting direction as to the implementation of an inclusionary housing program and commercial development linkage impact fee.

RECOMMENDATION:

Accept the Inclusionary Housing Feasibility Analysis and the Commercial Linkage Fee Nexus Study and provide further direction to staff.

BUSINESS PRINCIPAL DISCLOSURE:

The studies were prepared by EPS; EPS is a California corporation with Jason Moody, Darin Smith, and Jamie Gomes listed as officers. The signed Public Integrity Disclosure form is included as Attachment A to this staff report.

BACKGROUND:

An initial report on inclusionary housing ordinances was provided to the City Council in April 2021, with direction provided to staff to provide additional research and recommendations regarding the development of an inclusionary ordinance. Staff assembled an Inclusionary Housing Workgroup to assist in the compilation of data and studies, to discuss options and alternatives, and to formulate recommendations.

Item 3C - Page 1
City Council Staff Report
July 24, 2023 -- Page 2
Inclusionary Housing & Commercial Linkage Fee Studies

Workgroup members included representatives of the construction and development industry, affordable housing providers, and a member of the Plannin g Commission. The recommendations of the Inclusionary Housing Workgroup were presented to the City Council at the meeting of September 9, 2021. Following a review of the recommendations and discussion by the Council, staff was directed to pursue an inclusionary housing feasibility study and a commercial nexus study to serve as a basis for any future legislation regarding inclusionary zoning and a commercial/housing linkage impact fee (a copy of the staff report from the meeting of September 9, 2021, may be found at the following link: Agenda Item 4A: Inclusionary Housing Staff Report ).

A professional services agreement was awarded to EPS on September 1, 2022, for the preparation of an inclusionary housing study and commercial nexus study. As part of the scope of services , EPS interviewed developers, affordable housing providers, housing advocates, and housing industry representatives. In addition, EPS studied the local real estate market, housing development trends, and commercial development trends in preparing their analyses and preparing recommendations.

EPS presented their initial findings at a Planning Commission study session held on April 12, 2023. Stakeholders and interested parties were provided notices of the study session and invited to offer input on the feasibility analysis and nexus study. An additional discussion was held with the Planning Commission on June 28, 2023, wherein draft copies of the Inclusionary Housing Feasibility Analysis and the Commercial Linkage Fee Nexus Study were reviewed.

STAFF ANALYSIS – INCLUSIONARY HOUSING FEASIBILITY ANALYSIS:

The City of Palm Springs is investigating various options to assist in the production of affordable housing, including an inclusionary housing program. Inclusionary housing programs require that new residential development projects include a certain percentage of units that are affordable to lower -income households; as an alternative, developers may pay a fee in lieu of providing the required percentage of affordable units. A n economic feasibility study is often prepared in advance of adopting an inclusionary housing program, which can inform the decision as to the percentage of inclusionary housing units to require, the appropriate range for in-lieu fees, and potential market impacts.

EPS a nalyzed local mark et conditions in the preparation of the feasibility analysis to determine how an inclusionary requirement would impact the financial feasibility of new market-rate residential development. This assists in understanding whether the additional costs associat ed with an inclusionary requirement could be absorbed and how that impacts the development of new residential units. The feasibility analysis prepared by EPS is included as Attachment B to this staff report.

Two types of housing categories were analyzed a s part of the inclusionary study: one category for multifamily rental prototypes , and one category for ownership prototypes.

Item 3C - Page 2
City Council Staff Report
July 24, 2023 -- Page 3
Inclusionary Housing & Commercial Linkage Fee Studies

For each prototype, a “low,” “medium,” and “high” scenario for the percentage requirement of affordable units in each development is provided, as well as a corresponding recommendation for an in-lieu fee where affordable units are not provided on site. While EPS studied the maximum feasible fees and inclusionary options that would be possible, adopting a program at the maximum levels may have a negative impact on new housing development. Consequently, EPS has provided three feasible options below the maximum levels for both housing categories (rental and ownership) as part of their recommendations in the analysis. The options provide a mixture of the percentage of Very Low, Low, and Moderate- Income housing units that would be required under each scenario, depending on the goals in providing housing for each income category . The recommended options are provided in the following tables, and may also be found in Section 4 of Attachment B that is included with this staff report:

Recommended Inclusionary Requirement Options for Rental

Recommended Inclusionary Requirement Options for Ownership

The Planning Commission reviewed the options listed above at their meeting of June 28, 2023, and indicated a preference for Option 1 for both the rental and ownership categories. The justification for this preference was based on the income groups that would be served by the program, the required percentage of inclusionary units, and the amount of the in-lieu fee charged if not building the affordable units on site.

While inclusionary housing programs have been adopted by nearly 200 municipalities in California, there are not currently any inclusionary programs in the Coachella Valley.

Consequently, consideration must be given to how the adoption of an inclusionary housing program in Palm Springs may impact future housing development within the City Item 3C - Page 3
Onsite In-Lieu Fee (per sq.ft.)
lnclusionary Very Low Low Moderate Actual Recomme nded
Requirement Target
Option 1 10.0% 2.5% 2.5% 5.0% $ 14.91 $15.00
Option 2 6.0% 3.0% 3.0% 0.0% $17.65 $20.00
Option 3 15.0% 2.5% 2.5% 10.0% $ 15.10 $20.00
Onsite In-Lieu Fee (per sq.ft.)
lnclusionary Very Low Low Moderate Actua l Recommended
Requirement Target
Option 1 10.0% 0.0% 5.0% 5.0% $17.01 $20.00
Option 2 10.0% 0.0% 0.0% 10.0% $14.24 $15.00
Option 3 15.0% 0.0% 5.0% 10.0% $24.13 $25.00
City Council Staff Report
July 24, 2023 -- Page 4
Inclusionary Housing & Commercial Linkage Fee Studies

relative to the rest of the V alley. In addition, the amount of developable land is a factor that must also be considered in the decision to adopt an inclusionary program; few large parcels of undeveloped residential land remain in Palm Springs, thereby impacting the number of affordable units that could be built under the program (see Attachment D for a listing of undeveloped residential parcels). Other pros and cons of adopting an inclusionary program include the following:

Pros: Cons:
• Increases the City’s supply of deed -
restricted affordable housing.
• Provides opportunities for more people
to share in the benefits of economic
inclusion, integration, and citywide
economic growth.
• Helps the City meet its Regional
Housing Needs Allocation (RHNA) and
comm
itments made in the draft
Housing Element.
• Adds to the cost of developing market-
rate housing.
• Inclusionary requirements and in- lieu
fees need periodic updating to remain
in economic alignment with the market.
• Requires ongoing staff resources to
administer the program.

Should the City Council determine to move forward with the development of an inclusionary housing policy, staff will begin the preparation of an ordinance to amend the Palm Springs Zoning Code. The draft ordinance would be reviewed by the Planning Commission at a public hearing, which would then be forwarded to the City Council for consideration.

STAFF ANALYSIS – COMMERCIAL LINKAGE FEE NEXUS STUDY:

As a means to address affordable housing needs, the City of Palm Springs is considering a commercial linkage fee program. Also known as a “jobs -housing” linkage fee, this program is a development impact fee charged to developers of new nonresidential projects to assist with the creation of housing for lower -wage workers. The basis for this fee is that new commercial development creates new jobs, and some of these jobs will pay wages that are less than what is necessary to afford market-rate housing. The nexus established between these lower-wage jobs created by new development and the subsidy needed to afford market-rate housing is the basis for a linkage fee.

Assessing impact fees based on an established nexus is allowed pursuant to the State of California’s Mitigation Fee Act. Pursuant to the Act, a linkage fee can only be charged to new development and must be based on the impact of new development and the accompanying need for affordable housing. Any impact fee revenue collected specifically for the purpose of funding affordable housing can only be used for the construction or preservation of affordable units. As part of the establishment of the linkage fee, a jurisdiction must provide the findings necessary to justify the imposition of the fee. The linkage fee nexus study, prepared by EPS and included as Attachment C to this report, Item 3C - Page 4
City Council Staff Report
July 24, 2023 -- Page 5
Inclusionary Housing & Commercial Linkage Fee Studies

provides the required findings necessary under the Mitigation Fee Act.

Commercial linkage fees are generally common across the state. In the Coachella Valley, the City of Palm Desert is the only jurisdiction that has established a commercial linkage fee to date . Commercial linkage fees that have been adopted by other jurisdictions are typically established far below the nexus-based maximums, and generally from $1 to $10 per square foot. The linkage fee study prepared by EPS provides an analysis of the maximum linkage fees that could be charged; as part of their presentation to the City Council, EPS will provide potential options for consideration as detailed in the table below.

Potential Commercial Linkage Fee Options

The Planning Commission reviewed the options listed above at their meeting of June 28, 2023, and indicated a preference for Option 3. The reasoning behind the selection of Option 3 is that it offers the possibility of adjusting the linkage fee based on potential economic development goals that could be determined by the City Council.

As with the inclusionary housing program, the introduction of a commercial linkage fee could potentially impact the ability to draw new development to the City of Palm Springs.

Should the City Council proceed with establishing a commercial linkage fee, there should be adequate consideration to balance affordable housing needs and economic development policies.

If the establishment commercial linkage fee is desired, staff would begin work on a commercial linkage fee policy and resolution that would be brought back at a future City Council meeting for discussion and consideration.

Item 3C - Page 5
Adjusted Option #1 Option #2 Option #3
Land Use Category Maximum Fee high of $5, high of $6, tier economi c lo w of $4 proporti onall y developmen t lens
Retail/Restaurant/Services (Per Sq. Ft.) $485 $5.00 $6.00 $3.00 Office/R&D/Medical Offices (Per Sq. Ft. $478 $5.00 $6.00 $6.00 Industrial (Per Sq. Ft.) $164 $4.00 $2.00 $6.00
Warehousing (Per Sq. Ft.) $125 $4.00 $1 .50 $6.00
Hotel (Per Sq. Ft.) $408 $5.00 $5.00 $3.00
City Council Staff Report
July 24, 2023 -- Page 6
Inclusionary Housing & Commercial Linkage Fee Studies

ALIGNMENT WITH STRATEGIC PLANNING:

Preparation of an inclusionary housing study and commercial nexus study aligns with Strategic Priority 1C, “Affordable Housing.”

FISCAL IMPACT:

There is no fiscal impact associated with acceptance of the studies.

REVIEWED BY:

Housing Services Administrator: Ariel Tolefree-Williams Department Director: Chris Hadwin
Deputy City Manager: Flinn Fagg
City Manager: Scott Stiles

ATTACHMENTS:

A. Public Integrity Disclosure Form
B. Inclusionary Housing Feasibility Analysis
C. Commercial Linkage Fee Nexus Study
D. Analysis – Parcels Available for Residential Development E. Public Comment
Item 3C - Page 6

ATTACHMENT A

Item 3C - Page 7

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

1. Name of Entity

2. Address of Entity (Principal Place of Business)

3. Local or California Address (if different than #2)

4. State where Entity is Registered with Secretary of State If other t
han California, is the Entity also registered in California?  Yes  No

5. Type of Entity
 Corporation  Limited Liability Company  Partnership  Trust  Other (please specify)

6. Officers, Directors, Membe rs, Managers, Tru stees, Other F iduciaries (please specify) Note: If any response is not a natural person, please identify all officers, directors, members, managers and other fiduciaries for the member, manager, trust, or other entity
________________________  Officer  Director  Member  Manager [name]  General P artner  Limited Partner
Other ___________________ ________
_______________________________  Officer  Director  Member  Manager [name]  General Partner  Limited Partner
 Other ___ _______________________
________________________________  Offi
cer  Director  Member  Manager
[name]  General Partner  Limited Partner
 Other __________________________
Economic & Planning Systems Inc.
1330 Broadway, Suite 450, Oakland, CA 94612
California
X
Jason Moody X
Darin Smith X
Jamie Gomes X
800 Wilshire Blvd, Suite 410, Los Angeles, CA 90017
Item 3C - Page 8

7. O wners/Investors with a 5% beneficial interest in the Applicant Entity or a related entity

EXAMPLE

JANE DOE

[name of owner/ investor]
50% , A BC C
OMPANY, Inc.
[percentage of beneficial interest in entity and
name of entity]
A.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
B.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
C.
[name of owner/ investor] [percentage of beneficial interest in entity and name of entity]
D.
[name of owner/investor] [ percentage of beneficial interest in entity and name of entity]
E.
[name of owner/investor] [percentage of beneficial interest i n entity and name of entity]

I DECL ARE UNDER PENALTY OF PERJU RY UNDER T HE LAWS OF T HE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

Signature of Disclosing Party, Printed Name, Title Date Jason Moody 15.1%, Economic & Planning Systems Inc.

Darin Smith
Teifion Rice-Evans
Jamie Gomes
Andrew Knudtsen

15.1%, Economic & Planning Systems Inc.

Ashleigh Kanat 6/21/2022
David Zehnder 24.4%, Economic & Planning Systems Inc.

Item 3C - Page 9

ATTACHMENT B

Item 3C - Page 10

Draft Report
Feasibility Analysis of Inclusionary
Housing Requirements in Palm
Springs

Prepared for:

City of Palm Springs

Prepared by:

Economic & Planning Systems, Inc.

EPS #224028

July 7, 2023
Item 3C - Page 11
The Economics of Land Use
•
Economic & Planning Systems , Inc.
800 Wilshire Boulevard
Suite 410
Los Angeles , CA 90017
213 489 3838 tel
Oakland
Sacramento
Denver
Los Angeles
www.epsys.com
Item 3C - Page 12

Table of Contents
Key Findings and Options for Consideration ...................................................... 2

1. Background and Local Market Context ....................................................... 5 Regional Housing Needs Allocation................................................................... 5 Household Incomes and Affordability ............................................................... 6 Housing Production Trends ............................................................................. 7

2. Methodology and Assumptions .................................................................. 8 Return Metrics and Feasibility Thresholds ......................................................... 8 Product Prototypes ........................................................................................ 9 Development Cost Assumptions .................................................................... 10 Revenue and Value Assumptions ................................................................... 15

3. Feasibility Analysis ................................................................................. 17 Market-Rate Development ............................................................................ 17 Maximum Feasible In-Lieu Fee ...................................................................... 18 On-Site Inclusionary Requirement Alignment .................................................. 19

4. Recommendations ................................................................................. 22

Appendix A: Survey of Inclusionary Requirements in Select California Jurisdictions Item 3C - Page 13

List of Tables
Table 1 RHNA Allocation for Palm Springs ............................................................ 5 Table 2 Riverside County Income Limits by Persons in Household ............................ 6 Table 3 Prototype Residential Products .............................................................. 10 Table 4 Market-Rate Rental Apartment Product Prototype Unit Cost Assumptions ................................................................................ 11 Table 5 Market-Rate For-Sale Condominium Product Prototype Unit Cost Assumptions ................................................................................ 12 Table 6 Market-Rate For-Sale Townhome Product Prototype Unit Cost Assumptions ................................................................................ 13 Table 7 Market-Rate For-Sale Single Family Product Prototype Unit Cost Assumptions ................................................................................ 14 Table 8 Maximum Unit Values for Affordable Housing in Riverside County ............... 16 Table 9 Feasibility of Market-Rate Product Prototypes .......................................... 18 Table 10 Maximum Feasible Fees Per Building Square Feet for Market-Rate Prototypes ........................................................................ 19 Table 11 Subsidy Required for Below-Market-Rate Units by Income Level ................. 20 Table 12 Inclusionary Requirement Associated with Maximum Feasible Fees ............. 21 Table 13 Inclusionary Requirement Options for Rental ........................................... 23 Table 14 Inclusionary Requirement Options for Ownership ..................................... 23

Item 3C - Page 14
Economic & Planning Systems
1 Introduction and Summary of Options
Inclusionary housing programs require that new market-rate residential development projects include a certain percentage of housing units at rents or sale prices that are affordable to lower-income households. These programs also may include the option for new development to pay a fee in-lieu of providing affordable units on-site, as an alternative means of compliance. Inclusionary housing programs are one of many tools cities can use to achieve more affordable housing in their communities.

The City of Palm Springs is exploring the potential adoption of an inclusionary housing program. Economic & Planning Systems, Inc. (EPS) was retained by the City of Palm Springs (City) to conduct an economic feasibility study to determine what level of inclusionary requirements may be supportable in Palm Springs.

Inclusionary housing programs require that new residential development projects support the provision of affordable, or below-market-rate (BMR), housing units by either providing those units as part of the larger project or paying a fee to support the provision of the affordable units elsewhere. It is one of several policy tools available to cities and counties to promote the development of affordable housing units.

As part of this study, EPS analyzed how supporting the provision of these units would impact the financial feasibility of new market-rate residential development.

Such an analysis is intended to provide the City additional context regarding the implications of adopting inclusionary requirements – namely, whether or not the additional cost associated with an inclusionary requirement is too great for new residential projects to absorb and would, therefore, make any new residential development in the city extremely challenging or even completely financially infeasible. While Palm Springs is not legally required to consider these financial impacts when adopting an inclusionary housing requirement, they are often studied and incorporated into the development of these policies in order to best align a jurisdiction’s overall housing goals with its local real estate market conditions.
1 To this end, the feasibility analysis includes the identification and evaluation of multiple feasible inclusionary requirement options for different residential development product type currently being built in Palm Springs.

Inclusionary housing policies have been adopted by hundreds of jurisdictions nationwide, including nearly 200 cities and counties in the State of California.

Inclusionary housing programs tend to be most common in high-demand, high- value jurisdictions, especially in coastal communities, such as the Bay Area, Los

1 An exception to this statement is Assembly Bill (AB) 1505, which allows the State’s Department of Housing and Community Development (HCD) to request an economic feasibility study for inclusionary housing policies that include a requirement that more than 15 percent of total rental units developed be affordable to households earning 80 percent of area median income (AMI) or below.

Item 3C - Page 15
DRAFT REPORT: Feasibility Analysis of Inclusionary Housing Requirements in Palm Springs 2 Angeles, Long Beach, etc. If Palm Springs were to adopt an inclusionary housing program, it would be the first in the Coachella Valley region. However, in recent years, the number of inclusionary housing policies in Riverside County are increasing as more jurisdictions have started to consider them. Appendix A presents comparisons of inclusionary requirements and in-lieu fees for rental and ownership projects in several cities in California. The cities included in the graph were prioritized to reflect proximity to Palm Springs and/or tourism-based economies.

The key findings and options stemming from the feasibility analysis are summarized below. The subsequent chapters of this report provide details on the methodology and assumptions underlying the feasibility analysis, the results of the feasibility analysis, and the recommendations for inclusionary requirements by development product type that align with the feasibility findings as well as best practices for inclusionary housing programs found statewide.

Key Findings and Options for
Consideration

1. Each of the four market-rate, residential prototypes evaluated in this Study are shown to be feasible under current development and market conditions and likely can support inclusionary requirements should the City want to move forward with the adoption of an inclusionary housing program.

The first step of identifying feasible inclusionary housing requirements is to determine the feasibility of new market-rate housing development. EPS developed four housing prototypes based on development trends in the City — rental multifamily apartments (at a density of 30 units/acre), for-sale condominiums (at a density of 30 units/acre), for-sale townhomes (at a density of 20 units/acre), and for-sale single family homes (at a density of 6 units/acre). Using current development costs and market values, the analysis demonstrates that the development economics of each prototype exceed the profit thresholds and can support inclusionary requirements.

2. While the maximum inclusionary requirements that could be feasibly absorbed by the prototype market-rate products are quite high, EPS generally recommends more modest requirements, especially for cities adopting inclusionary housing programs for the first time.

Using industry standard return metrics for determining feasibility, EPS identified the maximum cost that the prototypes could absorb and still meet the feasibility threshold, and then converted that cost into a fee per market- rate building square foot and percentage of affordable units that could be financially subsidized at an equivalent cost.

Item 3C - Page 16
Economic & Planning Systems
3 While this analysis provides a useful assessment of the feasibility of each prototype, development costs and values are extremely variable across individual projects. Therefore, in most cases it is not recommended that jurisdictions adopt the maximum feasible inclusionary requirements. Based on typical fee and inclusionary levels seen in cities across the state, as well as consideration of the percent of a fee relative to the value of new units, EPS developed a set of inclusionary requirement options for new rental development and new for sale development. Each option presents a range of policy tradeoffs for further discussion and consideration, including the overall onsite inclusionary percentage, the income categories targeted, and the equivalent in-lieu fee amount. The options are summarized below:

Rental, Residential Development
 Three (3) options, with on-site inclusionary requirements ranging from 6 percent to 15 percent
 Targeting varying levels of Very Low, Low, and Moderate-income households
 In-lieu fees ranging from $15 to $20 per market rate square foot

Ownership, Residential Development
 Three (3) options, with on-site inclusionary requirements for ownership prototypes overall, ranging from 10 percent to 15 percent  Targeting Low and Moderate-income households
 In-lieu fees ranging from $15 to $25 per market rate square foot

Note that even though the feasibility analysis evaluates three distinct prototypes of ownership, residential development, the preceding options reflect inclusionary requirements for ownership product generally because cities that adopt inclusionary housing programs often adopt one set of requirements for ownership housing. An inclusionary program that is feasible Onsite
Inclusionary
Requirement Very Low Low Moderate Actual Recommended
Target
Option 1 10.0% 2.5% 2.5% 5.0% $14.91 $15.00
Option 2 6.0% 3.0% 3.0% 0.0% $17.65 $20.00
Option 3 15.0% 2.5% 2.5% 10.0% $15.10 $20.00
In-Lieu Fee (per sq.ft.)
Onsite
Inclusionary
Requirement Very Low Low Moderate Actual Recommended
Target
Option 1 10.0% 0.0% 5.0% 5.0% $17.01 $20.00
Option 2 10.0% 0.0% 0.0% 10.0% $14.24 $15.00
Option 3 15.0% 0.0% 5.0% 10.0% $24.13 $25.00
In-Lieu Fee (per sq.ft.)
Item 3C - Page 17
DRAFT REPORT: Feasibility Analysis of Inclusionary Housing Requirements in Palm Springs 4 for the least profitable of the prototypes will also be feasible for more profitable prototypes. In Palm Springs, the for-sale condominium prototype demonstrates the lowest profit margin of the three for-sale prototypes. Each of the options presented is feasible for the for-sale condominium prototype.

Item 3C - Page 18
Economic & Planning Systems
5 1. Background and Local Market Context
Inclusionary housing programs are only able to deliver new, affordable units if market-rate residential development is occurring and can achieve prices or rents that support the additional costs of including affordable units. Therefore, before evaluating the development feasibility of an inclusionary housing program, EPS evaluated the local residential market activity. This evaluation provides a sense of the need, and the types of market-rate development that is occurring along with the prevailing sales prices and rents of new residential development.

Regional Housing Needs Allocation
The State of California requires every jurisdiction to adequately plan for its community’s housing needs, as specified by the Regional Housing Needs Allocation (RHNA), which determines the amount of housing units needed for each jurisdiction by income category. Currently, jurisdictions in the Southern California Association of Governments (SCAG) have adopted or are working towards adopting their 6
th Cycle (2021 through 2029) Housing Elements to reflect policies and strategies required to meet current RHNA numbers. The City of Palm Springs is in the process of adopting an updated Housing Element but does not yet have a certified 6
th Cycle Housing Element as of July 2023.

Through the RHNA process, Palm Springs has an allocation of 2,557 total units.

Table 1 displays the RHNA allocation breakdown by income levels.

Table 1 RHNA Allocation for Palm Springs

Affordablility Category Units Percentage
Very Low Income 545 21.3%
Low Income 408 16.0%
Moderate Income 461 18.0%
Above Moderate 1,143 44.7%
Total 2,557 100.0%
Source: SCAG; Economic & Planning Systems, Inc.

Item 3C - Page 19
DRAFT REPORT: Feasibility Analysis of Inclusionary Housing Requirements in Palm Springs 6 Household Incomes and Affordability
HCD Income Limits
Affordable rents and sale prices for below-market-rate units are based on maximum housing costs affordable to households at various household income levels. Income levels in the County of Riverside are set by the California Department of Housing and Community Development (HCD) on an annual basis.

According to the 2023 HCD Income Limits for Riverside County (Table 2), the Area Median Income (AMI) in Riverside County is defined at $85,050 for a household of three and $94,500 for a household of four.

Table 2 Riverside County Income Limits by Persons in Household

Affordability of Market-Rate For-Sale Housing
Based on current Census data, households in the City of Palm Springs have a median annual income of $61,597 and an average of 3.1 people per “working” household (i.e., household with earnings). For context, a three-person household with earnings of approximately $60,000 (i.e., the “typical” household with earnings in Palm Springs) would be considered a Low-income household according to the 2023 HCD Income Limits for Riverside County. As of early 2023, the median sales price in the City is $1,077,250 for a detached single-family home. At this price point, the City’s “typical” three-person household earning approximately Maxiumum
Affordability Percentage of
Category County Median 1 2 3 4 5 6
Acutely Low
Income 0% - 15% $9,150 $10,500 $11,800 $13,100 $14,150 $15,200 Extremely
Low Income 30% $19,600 $22,400 $25,200 $30,000 $35,140 $40,280 Very Low
Income 50% $32,650 $37,300 $41,950 $46,600 $50,350 $54,100 Low Income 80% $52,200 $59,650 $67,100 $74,550 $80,550 $86,500 Median
Income
100% $66,150 $75,600 $85,050 $94,500 $102,050 $109,600
Moderate
Income 120% $79,400 $90,700 $102,050 $113,400 $122,450 $131,550 Sources: CA Department of Housing and Community Development; Economic & Planning Systems, Inc.

Number of Persons in Household
Item 3C - Page 20
Economic & Planning Systems
7 $60,000 cannot afford a median-priced single-family home in the City, underscoring the need for programs such as inclusionary housing.2 Affordability of Market-Rate Rental Housing
As of early 2023, the median apartment rent in Palm Springs is $2,970 per month, which equates to $35,640 annually. Assuming the median rent, a “typical” family of three cannot afford the median rent in the City, demonstrating that even the average household in the City may not be able to afford market-rate rents. 3 Housing Production Trends
Based on data available through the City’s Annual Progress Reports (APRs) as submitted to HCD, in the past several years, Palm Springs has experienced steady market-rate developments in both for-sale and rental housing projects, proving that new market-rate residential development is selling and renting at prices that exceed development costs, and still returning developer profit.

For Sale Housing
Between 2019 and 2022, 545 single-family detached units and 113 attached townhome units were completed.

Rental Housing
Between 2019 and 2022, 385 multifamily rental units were completed. In addition, the City has 192 affordable and special needs housing units currently in the pipeline.

Development Capacity Potential
Although the City has seen strong development trends in past years, the large parcels appropriate for single-family home subdivisions are increasingly scarce, and much of the anticipated development capacity identified in the City’s Draft Housing Element is expected to occur on infill parcels, in the central areas of the City. Specifically, the areas around the intersection of North Indian Canyon Drive and Racquet Club Road and the areas around the intersection of S Avenida Caballeros and E Baristo Road are slated to accommodate much of the City’s RHNA in the current housing cycle.

2 Assumes that no more than 30 percent of a household's income should be spent on housing costs, a 30-year mortgage with a fixed 5 percent interest rate, and a 10 percent downpayment.
3 Assumes that no more than 30 percent of a household's income should be spent on housing costs.

Item 3C - Page 21
DRAFT REPORT: Feasibility Analysis of Inclusionary Housing Requirements in Palm Springs 8 2. Methodology and Assumptions
In an inclusionary program, developers are required to set aside a portion of their units for lower-income households. When a developer builds the affordable units on site, the project’s development costs are not significantly affected. It costs approximately the same to build a market-rate unit as an affordable unit.

However, the revenue the developer can expect from the affordable units is less than the revenue from the market-rate units. The developer is, in effect, subsidizing the development of the affordable units. The subsidy is greater for units affordable to Very Low-income households than it is for Low-income households and Moderate-income households.

In some cases, the developer may opt to pay a fee in lieu of providing the units on site. When a developer pays an in-lieu fee, all the units are sold or rented as market-rate units, so the revenue potential is not affected. However, the development costs are affected by the amount of the in-lieu fee, which are typically paid at the time of building-permit issuance or certificate of occupancy.

Return Metrics and Feasibility
Thresholds
The assessment of financial feasibility for real estate development products is based on calculating financial return metrics and comparing them against typical industry target thresholds. In the case of residential development, relevant return metrics are based on comparing total project revenues to total project development costs.

This analysis established a feasibility threshold based on two standard return metrics used by real estate developers. These return metrics reflect the value of the investment in a project, and are a critical element in informing a developer’s “go/no-go” decision to proceed with development:
 For ownership, or for sale housing products (typically single family detached and attached homes, including townhomes and condominiums), the feasibility threshold is based on the return metric of “profit margin,” calculated as the percentage by which total project value exceeds total project cost. Based on EPS research and feedback from the developer community, the analysis assumes that developers in Palm Springs and the surrounding region will require at least a 15 percent profit margin on for-sale development projects.

Therefore, any project attaining a profit margin at or above 15 percent would be considered feasible in this analysis.

Item 3C - Page 22
Economic & Planning Systems
9  For rental housing products (typically, multifamily apartments), the feasibility threshold is based on the return metric of “yield on cost,” calculated by dividing the annual net operating income (NOI) by the total costs of development.4 Based on EPS research and experience, the analysis assumes that developers in Palm Springs and the surrounding region will require a yield on cost of at least 5.5 percent.

It is important to note that these return metrics do not account for the time value of money and are not based on any assumption regarding project timeline. EPS assumptions for prototype revenues and costs used to calculate the return metrics are detailed in the following sections.

Product Prototypes
The prototype residential products used in the feasibility analysis were informed by EPS research on the local housing market. Research included review of recent developments and proposed projects, discussions with developers active in the region, and discussions with City staff. The characteristics for the prototype development products are summarized in Table 3. They include one rental prototype – multifamily apartments - and three for-sale prototypes – condominiums, townhomes, and single-family detached homes.

The critical differentiator between the for-sale prototypes is the density at which they are built and how parking is provided, with the “condominium” product assumed to be built at a higher density (30 units per acre) than the “townhome” product (20 units per acre) and with structured, podium-style parking below residential, while the “townhome” product is assumed to include an attached, “tuck-under” garage. The “single-family detached” product is assumed to be developed at an even lower density (6 units per acre) and with an attached garage. The analysis also assumes that the prototypical townhome is smaller than the prototypical single-family home. In some cases, there may be additional design factors – such as whether a unit is detached or attached – that are used to define a project as a townhome or single-family home. This analysis does not account for those types of factors, only differentiating the two prototypes based on density, parking, and unit size.

The unit characteristics for each prototype are meant to represent average unit sizes, with the resulting analysis demonstrating feasibility for an average residential project. The findings of this analysis assume that the unique unit mix of any particular project will, in aggregate, conform to these average unit sizes.

However, any specific project will have its own cost and revenue factors that may be impacted in part by its unit mix.

4 Net operating income reflects total rent collected minus operating costs.

Item 3C - Page 23
DRAFT REPORT: Feasibility Analysis of Inclusionary Housing Requirements in Palm Springs 10 Table 3 Prototype Residential Products

However, any specific project will have its own cost and revenue factors that may be impacted in part by its unit mix.

Development Cost Assumptions
Housing development costs categories include land acquisition, site preparation, hard costs (e.g., construction labor and materials), and indirect or “soft” costs (e.g., architecture, entitlement, marketing, etc.). For multifamily projects that include a structured garage, EPS also defines parking costs per unit as a separate line item. Data from recent developments and land transactions in the local market have been combined with information from interviews with various housing developers to inform the development cost assumptions used in this analysis. Table 4, Table 5, Table 6, and Table 7 below detail the cost assumptions and estimated costs per unit for the apartment, condominium, townhome, and single-family home product prototypes, respectively.

Item
Apartment
Units
Condominium
Units
Townhome
Units
Single-Family
Detached Units
Tenure Rental For Sale For Sale For Sale
Building Type Multifamily Multifamily Attached Detached Density 30 units/acre 30 units/acre 20 units/acre 6 units/acre Unit Bedrooms 2 Bedrooms 2 Bedrooms 3 Bedrooms 3 Bedrooms Unit Square Feet 900 1,400 1,600 2,400
Parking Type Structured Garage Structured Garage Attached Garage Attached Garage Item 3C - Page 24
Economic & Planning Systems
11 Table 4 Market-Rate Rental Apartment Pr oduct Prototype Unit Cost Assumptions

Item Per Unit
Development Prototype
Parcel Size 1 acre
Density 30 units/acre
Unit Size 900 sq.ft.

Number of Bedrooms 2.0 per unit
Amount of Parking 1.5 per unit
Development Costs
Land Costs $600,000 per acre $20,000
Site Improvements $100,000 per acre $3,333
Consultants 8.6% of finished lot value $5,000
Fees/Permits 51.4% of finished lot value $30,000
Subtotal, Finished Lot $58,333
Direct Construction Costs $200 per sq.ft. $180,000
Builder Fee 7.0% of direct const. costs $12,600
Parking Costs $50,000 per space, structured $75,000
Subtotal, Direct Costs $267,600
Loan/Financing 10% $26,760
Marketing/Selling Costs/Warranty 5% $13,380
Other Indirect Costs 8% $21,408
Contingency 2% $5,352
Subtotal, Indirect Costs 25% of direct costs $66,900
Total Construction Costs $392,833
Multifamily Apartment, Rental
Assumptions
Item 3C - Page 25
DRAFT REPORT: Feasibility Analysis of Inclusionary Housing Requirements in Palm Springs 12 Table 5 Market-Rate For-Sale Condominium Product Prototype Unit Cost Assumptions

Item Per Unit
Development Prototype
Parcel Size 1 acre
Density 30 units/acre
Unit Size 1,400 sq.ft.

Number of Bedrooms 2.0 per unit
Amount of Parking 2.0 per unit
Development Costs
Land Costs $600,000 per acre $20,000
Site Improvements $100,000 per acre $3,333
Consultants 8.6% of finished lot value $5,000
Fees/Permits 51.4% of finished lot value $30,000
Subtotal, Finished Lot $58,333
Direct Construction Costs $200 per sq.ft. $280,000
Builder Fee 7.0% of direct const. costs $19,600
Parking Costs $50,000 per space, structured $100,000
Subtotal, Direct Costs $399,600
Loan/Financing 10% $39,960
Marketing/Selling Costs/Warranty 10% $39,960
Other Indirect Costs 8% $31,968
Contingency 2% $7,992
Subtotal, Indirect Costs 30% of direct costs $119,880
Total Construction Costs $577,813
Multifamily Attached Condo, Ownership
Assumptions
Item 3C - Page 26
Economic & Planning Systems
13 Table 6 Market-Rate For-Sale Townhome Product Prototype Unit Cost Assumptions

Item Per Unit
Development Prototype
Parcel Size 1 acre
Density 20 units/acre
Unit Size 1,600 sq.ft.

Number of Bedrooms 3.0 per unit
Amount of Parking 2.0 per unit
Development Costs
Land Costs $600,000 per acre $30,000
Site Improvements $120,000 per acre $6,000
Consultants 7.0% of finished lot value $5,000
Fees/Permits 42.3% of finished lot v alue $30,000
Subtotal, Finished Lot $71,000
Direct Construction Costs $185 per sq.ft. $296,000
Builder Fee 7.0% of direct const. costs $20,720
Parking Costs $0 per space $0
Subtotal, Direct Costs $316,720
Loan/Financing 10% $31,672
Marketing/Selling Costs/Warranty 10% $31,672
Other Indirect Costs 8% $25,338
Contingency 2% $6,334
Subtotal, Indirect Costs 30% of direct costs $95,016
Total Construction Costs $482,736
Single Family Attached Townhome, Ownership
Assumptions
Item 3C - Page 27
DRAFT REPORT: Feasibility Analysis of Inclusionary Housing Requirements in Palm Springs 14 Table 7 Market-Rate For-Sale Single Family Product Prototype Unit Cost Assumptions

Item Per Unit
Development Prototype
Parcel Size 1 acre
Density 6 units/acre
Unit Size 2,400 sq.ft.

Number of Bedrooms 3.0 per unit
Amount of Parking 2.0 per unit
Development Costs
Land Costs $450,000 per acre $75,000
Site Improvements $120,000 per acre $20,000
Consultants 3.4% of finished lot value $5,000
Fees/Permits 31.0% of finished lot v alue $45,000
Subtotal, Finished Lot $145,000
Direct Construction Costs $175 per bldg. sq.ft. $420,000 Builder Fee 7.0% of direct const. costs $29,400
Parking Costs $0 per space $0
Subtotal, Direct Costs $449,400
Loan/Financing 10% $44,940
Marketing/Selling Costs/Warranty 10% $44,940
Other Indirect Costs 8% $35,952
Contingency 2% $8,988
Subtotal, Indirect Costs 30% of direct costs $134,820
Total Construction Costs $729,220
Single Family Detached, Ownership
Assumptions
Item 3C - Page 28
Economic & Planning Systems
15 Revenue and Value Assumptions
Market-Rate Rents
For rental apartments, the metric used to determine feasibility is yield-on-cost, which is calculated as annual net operating income (NOI) divided by development costs. Annual NOI is calculated as annual rent minus annual operating expenses, which are assumed at $10,000 per market-rate unit in this analysis. (See Table

4.) Current market-rate rents are reported to be $3.30 per square foot, which equates to $2,970 per month for a 900 square-foot apartment.

Market-Rate Sales Prices
For the for-sale prototypes, the value of the unit is equal to the estimated sale price. The sales prices for each prototype are established based on market research and conversations with local developers. Current sales prices for condominium units are reported to be $720,000 per unit; townhome units are valued at $800,000 per unit, and single-family detached homes are selling for approximately $1.0 million on average.

Affordable Housing Values
In general, very-low-income households are defined as those earning up to 50 percent of AMI; low-income households earn up to 80 percent AMI; and moderate-income households earn up to 120 percent of AMI. In Riverside County the dollar amount thresholds for each category are in line with the percentage thresholds.
5 Based on the maximum household income, EPS calculated the maximum spending towards housing costs affordable at each income level. Consistent with HCD guidelines, the analysis assumes that households spend 30 percent of their gross annual income on total housing costs. For rental units, housing costs include rent and utilities. For for-sale units, housing costs include mortgage and interest payments, insurance, property taxes, and Homeowners Association (HOA) fees.

To calculate the maximum affordable sale price for these units, EPS assumed that these other housing costs represent approximately 10 percent of household income, and, therefore, the maximum income available for a mortgage payment is 20 percent of annual household income. This mortgage payment was converted into an affordable home sale price assuming a 10 percent down payment and a 30-year mortgage with a fixed interest rate of 5 percent.

Table 8 indicates the maximum annual incomes for County households associated with each income category for the associated household size, as well as the affordable rents and sale prices associated with each category.

5 See HCD State Income Limits 2023, https://www.hcd.ca.gov/sites/default/files/docs/grants- and-funding/income-limits-2023.pdf
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DRAFT REPORT: Feasibility Analysis of Inclusionary Housing Requirements in Palm Springs 16 Table 8 Maximum Unit Values for Affordable Housing in Riverside County

Item
Very Low
Income
(50% AMI)
Low
Income
(80% AMI)
Moderate
Income
(120% AMI)
Rental Apartments
Maximum Household Income [1] $41,950 $67,100 $102,050
Income Available for Housing Costs/Year [2] $9,489 $17,034 $27,519 (less) Operating Expenses per Unit/Year [3] ($7,500) ($7,500) ($10,000) Net Operating Income $1,989 $9,534 $17,519
Capitalization Rate [4] 4.5%4 .5%4 .5%
Unit Value [5] $44,200 $211,86 7 $389,311
For‐Sale Condominiums
Household Income [1] $41,950 $67,100 $102,050
Income Available for Housing Costs/Year [6] $8,390 $13,420 $20,410 Supportable Mortgage [7] $128,975 $206,298 $313,752
Supportable Home Price [8] $143,305 $229,22 0 $348,613
For‐Sale Townhomes
Household Income [1] $46,600 $74,550 $113,400
Income Available for Housing Costs/Year [6] $9,320 $14,910 $22,680 Supportable Mortgage [7] $143,271 $229,203 $348,647
Supportable Home Price [8] $159,190 $254,67 0 $387,386
For‐Sale Single‐Family Homes
Household Income [1] $46,600 $74,550 $113,400
Income Available for Housing Costs/Year [6] $9,320 $14,910 $22,680 Supportable Mortgage [7] $143,271 $229,203 $348,647
Affordable Home Price [8] $159,190 $254,67 0 $387,386
[7] Assumes a 30‐year mortgage and a fixed 5% interest rate. [8] Assumes a 10% down payment.
[1] Reflects 2023 HCD Income Limits for a three‐person household for apartments and condominiums, and a four‐person household for townhomes and single‐family homes.
[2] Assumes that no more than 30% of a h ousehold's income should be spent on housing costs for housing to be considered affordable. [3] Operating expenses are generally based on EPS feasibility studies in the region and are inclusive of utility costs; units at or below 80% of AMI are assumed to be built as non‐profit and are th erefore exempt from property taxes. Property taxes are assumed to comprise a share of the operating expenses for the moderate income category. [4] The capitalization rate is used to determine the current value of a property based on estimated future operating income, and is typically a measure of estimated operating risk. Obta ined for multifamily developments in Palm Springs and the surrounding region from CoStar.
[5] The unit value is determined by dividing the net operating income by the capitalization rate. [6] Assumes that no more than 20% of household income is spent on mortgage payments. This reflects that total housing costs should no t exceed 30% of income, and takes into account other housing‐related costs, such as taxes, insurance, and HOA fees.

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Economic & Planning Systems
17 3. Feasibility Analysis
Market-Rate Development
The first step in assessing feasible inclusionary housing requirements for Palm Springs involved evaluating whether 100 percent market rate projects reflecting the defined product prototypes are financially feasible before considering an inclusionary requirement.

Table 9 illustrates yield on cost or profit margin for each product prototype assuming current market rate prices, based on the data shown above in Table 4 through Table 7. As shown in Table 9, the analysis suggests that the development of all four of the prototypes (one rental and three for-sale) is feasible given the current relationship of development costs and market rate rents and sale prices.

It is important to note that this analysis only reflects an average prototypical project and any specific project may have its own cost and revenue factors that may be impacted in part by its unit mix.

There are many factors that can impact the financial feasibility of any particular development project. For example, if a project can acquire land at a lower price or build at a higher density or provide less parking than what is represented in the above assumptions, the project economics may improve. Similarly, a developer may find that there is sufficient demand to achieve rents or sale prices higher than those assumed in this analysis. Therefore, the above analysis should not be considered deterministic regarding the future of housing development in the City.

Rather, it should be taken as informative regarding the obstacles to housing development under average conditions and the resulting need for careful consideration before introducing an additional cost in the form of inclusionary housing requirements.

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DRAFT REPORT: Feasibility Analysis of Inclusionary Housing Requirements in Palm Springs 18 Table 9 Feasibility of Market-Rate Product Prototypes

Maximum Feasible In-Lieu Fee
The next step of the analysis is to evaluate the maximum additional cost that these prototypes could “bear” and still achieve the defined feasibility thresholds.

This additional cost represents the potential in-lieu fee that a developer could pay to support the provision of affordable housing units. In-lieu fees, which are a Item
Feasibility
Threshold Results
Rental Apartments
Development Costs Per Unit $392,833
Net Operating Income Per Unit $25,640
Yield on Cost 5.50% 6.5%
For‐Sale Condominium
Development Costs Per Unit $577,813
Average Sale Price $720,000
Profit $142,187
Profit Margin 15% 25%
For‐Sale Townhomes
Development Costs Per Unit $482,736
Average Sale Price $800,000
Profit $317,264
Profit Margin 15% 66%
For‐Sale Single‐Family Homes
Development Costs Per Unit $729,220
Average Sale Price $1,000,000
Profit $270,780
Profit Margin 15% 37%
Key
Infeasible
Feasible
Item 3C - Page 32
Economic & Planning Systems
19 common alternative means of complying with an inclusionary requirement, are calculated based on the financial subsidy needed to support the development of affordable units that are not being provided on-site. The fee revenues are collected in a dedicated fund that can be utilized to support the production and preservation of affordable units in the City.

Table 10 below demonstrates the maximum feasible fee that could be levied on a prototype project. The fee is calculated on a per square foot basis; therefore, the fee owed on a project would be equal to the fee level shown multiplied by the square footage of the market-rate development. As shown, the maximum feasible fee ranges widely, aligned with the range of return metrics achievable for each prototype (see Table 9).

Table 10 Maximum Feasible Fees Per Building Square Feet for Market-Rate Prototypes

On-Site Inclusionary Requirement
Alignment
As described above, it is best practice for an inclusionary housing program to have an on-site inclusionary requirement that aligns with the cost of the in-lieu fee. Stated another way, the cost to the developer of paying the in-lieu fee should be approximately equal to the subsidy that a project is providing when some portion of units are rented or sold at below-market-rates, given that the value of those units is typically less than the cost to build them. 6 This subsidy is the
difference between the cost of building units that will be BMR (equal to the cost of building market-rate units, as detailed in Table 4 through Table 7) and their value based on maximum affordable rents or sale prices (as detailed in Table 8).

6 Some cities make a policy decision to incentivize the production of onsite units over payment of the in-lieu fee (or vice versa). In these circumstances, a city’s onsite requirement and the associated in-lieu fee may be intentionally different from a development cost perspective.

Product Category Maximum Feasible Fee Per Bldg. Sq. Ft.

Rental Apartments $81.50
For‐Sale Condominium $34.48
For‐Sale Townhomes $88.72
For‐Sale Single‐Family Homes $58.48
Item 3C - Page 33
DRAFT REPORT: Feasibility Analysis of Inclusionary Housing Requirements in Palm Springs 20 The subsidy required for each product type across the three affordable income levels (very-low, low, and moderate-income) is shown below in Table 11. It is worth noting that these subsidies represent the cost to a developer of providing BMR units on-site as part of a larger market-rate project. The subsidy required for building BMR units as part of a 100 percent affordable project may be different, as the costs for building an affordable housing project can often differ from the costs for building a market-rate housing project.

Table 11 Subsidy Required for Below-Market-Rate Units by Income Level

Using the subsidies shown above, EPS calculated the inclusionary requirements options for each income category that would align with different levels of in-lieu fee, under the maximum feasible fee, for each prototype. These inclusionary requirements are summarized below in Table 12. The requirements are shown as the percent of total project units that, if rented or sold at each income category, would result in a cost to developers equal to the maximum feasible fee amount.

These percentages are mutually exclusive, not additive—in other words, they Item
Very‐Low
Income
(50% AMI)
Low Income
(80% AMI)
Moderate
Income
(120% AMI)
Rental Apartments
Development Costs Per Unit $392,833 $392,833 $392,833
Development Value Per Unit $44,200 $211,867 $389,311
Subsidy Required Per Unit ($348,633) ($180,967) ($3,522) For‐Sale Condominium
Development Costs Per Unit $577,813 $577,813 $577,813
Development Value Per Unit $143,305 $229,220 $348,613
Subsidy Required ($434,508) ($348,593) ($229,200)
For‐Sale Townhomes
Development Costs Per Unit $482,736 $482,736 $482,736
Development Value Per Unit $159,190 $254,670 $387,386
Subsidy Required ($323,546) ($228,066) ($95,350)
For‐Sale Single‐Family Ho mes
Development Costs Per Unit $729,220 $729,220 $729,220
Development Value Per Unit $159,190 $254,670 $387,386
Subsidy Required ($570,030) ($474,550) ($341,834)
Item 3C - Page 34
Economic & Planning Systems
21 show the maximum feasible requirement if only one income level was targeted in an inclusionary housing program.

Table 12 Inclusionary Requirement Associated with Maximum Feasible Fees

Item Result
Rental Apartments
Maximum Feasible Fee $81.50
Associated Incl. Requirement [1]
% Very‐Low Income Units OR 21.0%
% Low Income Units OR 40.5%
% Moderate Income Units 2082.4%
For‐Sale Condominium
Maximum Feasible Fee $34.48
Associated Incl. Requirement [1]
% Very‐Low Income Units OR 11.1%
% Low Income Units OR 13.8%
% Moderate Income Units 21.1%
For‐Sale Townhomes
Maximum Feasible Fee $88.72
Associated Incl. Requirement [1 ]
% Very‐Low Income Units OR 43.9%
% Low Income Units OR 62.2%
% Moderate Income Units 148.9%
For‐Sale Single‐Family Homes
Maximum Feasible Fee $58.48
Associated Incl. Requirement [1]
% Very‐Low Income Units OR 24.6%
% Low Income Units OR 29.6%
% Moderate Income Units 41.1%
[1] The inclusionary requirements associated with the maximum feasible fee are mutually exclusive for each income category, not additive. [2] Inclusionary requirements for for‐sale products typically do not target very‐low income households, given the challenges for those households to support the other housing costs that are associated with homeownership.

Item 3C - Page 35
DRAFT REPORT: Feasibility Analysis of Inclusionary Housing Requirements in Palm Springs 22 4. Recommendations
While the feasibility analysis in the previous chapter identified the maximum feasible fees and inclusionary options for each prototype, it is important to reiterate that the feasibility analysis is only looking at the average likely development project. Adopting an inclusionary program set at these maximum levels may still have a negative impact on new housing development, given the variability in costs and values across each individual project. Given that, EPS developed a set of feasible inclusionary requirements options for each prototype.

These recommendations are lower than the maximum feasible levels. These recommendations are informed in part by in-lieu fees and inclusionary requirements found in other jurisdictions statewide.

A range of feasible options are possible – each presenting various tradeoffs for consideration. The options are summarized by tenure (i.e., whether a unit is for sale or for rent) in Table 13 and Table 14Error! Reference source not found., which are shown below. In some of the options, EPS developed inclusionary requirements that set a “blend” of income categories equivalent to the recommended fee, targeting a range of affordability levels. The inclusionary requirement options for ownership are general options that would work for most prototypes (condominium, townhome, or single-family detached) but are not specific to a product type.

Feedback from the April and June 2023 presentations to the Planning Commission indicated a preference for Option 1 for both rental and ownership development.

Option 1 for rental allows for a mix of incomes (Very Low, Low, and Moderate) while keeping the in-lieu fee around $15 per square foot of market rate development. Option 1 for ownership development allows for a mix of Low and Moderate with in-lieu fees of approximately $20 per square foot of market rate development.

Item 3C - Page 36
Economic & Planning Systems
23 Table 13 Inclusionary Requirement Options for Rental

Table 14 Inclusionary Requirement Options for Ownership

Onsite
Inclusionary
Requirement Very Low Low Moderate Actual Recommended
Target
Option 1 10.0% 2.5% 2.5% 5.0% $14.91 $15.00
Option 2 6.0% 3.0% 3.0% 0.0% $17.65 $20.00
Option 3 15.0% 2.5% 2.5% 10.0% $15.10 $20.00
In-Lieu Fee (per sq.ft.)
Onsite
Inclusionary
Requirement Very Low Low Moderate Actual Recommended
Target
Option 1 10.0% 0.0% 5.0% 5.0% $17.01 $20.00
Option 2 10.0% 0.0% 0.0% 10.0% $14.24 $15.00
Option 3 15.0% 0.0% 5.0% 10.0% $24.13 $25.00
In-Lieu Fee (per sq.ft.)
Item 3C - Page 37

APPENDIX A:

Survey of Inclusionary Requirements in
Select California Jurisdictions

Item 3C - Page 38
•

0%
5%
10%
15%
20%
25%
Jurupa Valley Temecula [2] Montclair Encinitas
(Option #1)
Encinitas
(Option #2)
Carlsbad Monterey Santa Cruz [3] Pasadena [4]
Rental Inclusionary Requirements in California Cities as of May 2023 [1] Very Low Low Moderate
[1] Although most of the jurisdictions included have in‐lieu fees as an alternate means of complying with inclusionary requirements, many fees are difficult to loc or are not easy to calculate. The ones that are available are included. [2] Temecula's inclusionary requirement applies specifically to high‐density residential within its affordable housing overlay zoning district. [3] Santa Cruz's in‐lieu fee is dependent on resolution by the city council or to be determined for specific developments calculated by the difference betw een the affordable sales price of an inclusionary unit and the value of a market rate unit. [4] The in‐lieu fee in Pasadena is dependent on the location of the development within the city and the size of the development.

Source: Economic & Planning Systems
$15,400/unit $2,925/unit
$36.71 to $76.68
sq. ft.

Item 3C - Page 39

0%
5%
10%
15%
20%
25%
Jurupa Valley Calimesa Temecula Montclair Encinitas
(Option #1)
Encinitas
(Option #2)
Carlsbad Monterey Santa Cruz Pasadena
Ownership Inclusionary Requirements in California Cities as of May 2023 [1] Very Low Low Moderate
[1] Although most of the jurisdictions included have in‐lieu fees as an alternate means of complying with inclusionary requirements, many fees are difficult to loca or are not easy to calculate. The ones that were available are included. [2] Temecula's inclusionary requirement applies specifically to high‐density residential within its affordable housing overlay zoning district. [3] Santa Cruz's in‐lieu fee is dependent on resolution by the city council or to be determined for specific developments calculated by the difference betw een the affordable sales price of an inclusionary unit and the value of a market rate unit. [4] The in‐lieu fee in Pasadena is dependent on the location of the development within the city and the size of the development.

Source: Economic & Planning Systems
$15,400/unit $8,529/unit
$33.72 to $78.95
sq. ft.

Item 3C - Page 40
. I

ATTACHMENT C

Item 3C - Page 41

Draft Report
Commercial Linkage
Fee Nexus Study

Prepared for:

City of Palm Springs

Prepared by:

Economic & Planning Systems, Inc.

July 7, 2023

EPS #224028
Item 3C - Page 42
The Economics of Land Use
•
Economic & Planning Systems, Inc.
800 Wilshire Boulevard
Suite 410
Los Angeles, CA 90017
213 489 3838 tel
Oakland
Sacramento
Denver
Los Angeles
www.epsys.com

Table of Contents

1. INTRODUCTION AND EXECUTIVE SUMMARY .................................................................... 1 Background ............................................................................................................ 1 Regional Context .................................................................................................... 1 Key Findings .......................................................................................................... 2 Primary Sources ..................................................................................................... 3 Organization of Report ............................................................................................. 3

2. REQUIRED NEXUS FINDINGS FOR FEE PROGRAM .............................................................. 4 Background ............................................................................................................ 4 Authority ............................................................................................................... 4 Required Nexus Findings .......................................................................................... 4 Assembly Bill 602 Provisions ..................................................................................... 5

3. METHODOLOGY AND FEE CALCULATION ........................................................................ 8 Land Use Categories ................................................................................................ 8 Estimates of New Worker Households ........................................................................ 9 Housing Development Costs and Affordability Gap ..................................................... 14 Fee Calculation ..................................................................................................... 17

Appendices:

Appendix A: Assumptions and Sources
Appendix B: Occupation Distribution by Employment Category Appendix C: Survey of Commercial Linkage Fees in Other Jurisdictions Item 3C - Page 43

List of Tables
Table 1 Summary of Maximum Allowable Linkage Fees .................................................... 2 Table 2 Riverside County Income Category Definitions (2023) .......................................... 3 Table 3 Land Use Category Descriptions ........................................................................ 8 Table 4 Illustration of Employees' Household Income Calculation ..................................... 10 Table 5 Income Distribution of Worker Households by Employment Category .................... 12 Table 6 Household Generation Rates by Employment Category ....................................... 13 Table 7 Affordability Gap Analysis – Rental Product Type ................................................ 16 Table 8 Fee Calculation – Retail/Restaurant/Services ..................................................... 18 Table 9 Fee Calculation – Office/R&D/Medical Offices ..................................................... 19 Table 10 Fee Calculation – Lodging ............................................................................... 20 Table 11 Fee Calculation – Industrial ............................................................................. 21 Table 12 Fee Calculation – Warehousing ........................................................................ 22

Item 3C - Page 44

Economic & Planning Systems, Inc. 1 Palm Springs_Commercial Linkage Fee_Draft Nexus Study_07July2023.docx

1. INTRODUCTION AND EXECUTIVE SUMMARY
Background
The City of Palm Springs is exploring various tools to address the City’s affordable housing needs, including the potential adoption of a commercial linkage fee program. A commercial linkage fee, also known as a jobs-housing linkage fee, is a type of development impact fee charged to developers of new, nonresidential properties to help support affordable housing for lower-wage workers. The conceptual underpinning of the fee is that new nonresidential development creates new jobs, and some of these jobs will pay wages below what is required for a worker to afford a market-rate housing unit in the City. If the cost to construct new housing units is higher than can be supported by the rents or home prices that workers can afford to pay, the difference is considered an “affordability gap.” The nexus (or reasonable relationship) established between the projected number of lower-wage jobs created by new development, and the subsidy needed to fund this “affordability gap” and support the creation and maintenance of units that are affordable to workers in these jobs is the basis for the linkage fee.

Economic & Planning Systems (EPS) was retained to analyze the feasibility of a commercial linkage fee program in Palm Springs. EPS has completed the required nexus analysis that quantifies the relationship between the growth in several nonresidential land uses (commercial land use categories), including retail/restaurant/services, office/R&D/medical offices, lodging, industrial and warehousing and the demand for and cost of affordable housing for the local workforce.

Assessing an impact fee, such as a linkage fee, based on an established nexus is allowed pursuant to under the State of California’s Mitigation Fee Act (California Government Code sections 66000 et seq.). As a development impact fee, this linkage fee can only be charged to new development and must be based on the impact of new development on the need for resources to subsidize the development of new affordable housing. Fee revenue may be collected by the City and used to subsidize the production or preservation of affordable units for lower- income households.

Regional Context
Commercial linkage fees are common across the state but most common in high-demand, high- value jurisdictions with strong nonresidential development trends. Fees are often set well below the nexus-based maximums and typically range from $1 to $10 (or as high as $40 per square foot of office development in Silicon Valley jurisdictions). If adopted, Palm Springs would be among the first jurisdictions in the Coachella Valley region to implement a commercial linkage fee program, joining Palm Desert. Palm Desert’s commercial linkage fees are quite low for office, retail, and industrial development ($1 or less per square foot) and somewhat higher for hotel development. Palm Desert’s linkage fees were adopted in 1990 and do not appear to have been updated since then. Appendix C exhibits examples of commercial linkage fees in other cities by land use category.

Item 3C - Page 45
Draft Report
Palm Springs Commercial Linkage Fee Nexus Study
07/07/2023

Economic & Planning Systems, Inc. 2 Palm Springs_Commercial Linkage Fee_Draft Nexus Study_07July2023.docx Key Findings
Table 1 summarizes the maximum justifiable linkage fee by commercial land use category. The methodology used to establish the maximum justifiable fees is described in the subsequent chapters of this report. Please note that these maximum fees are supported by the nexus analysis but are likely to exceed levels that could feasibly be borne by new commercial developments. The City has the opportunity to adopt fees up to these maximum levels but will want to consider other economic development and fiscal revenue factors. The ”adjusted maximum” fees identified on Table 1 reflect one rationale for adjusting the maximum fees downward, by discounting the maximum fees to reflect that 17.3 percent of people who work in Palm Springs also reside in Palm Springs, but still likely exceed feasible fee levels.1 Table 1 Summary of Maximum Allowable Linkage Fees

Table 2 presents the income categories that are relevant for this fee program. This study uses incomes defined by the State of California’s Department of Housing and Community Development (HCD). The number of worker households that are generated as a result of commercial development are categorized on the basis of these income levels.

1 As a separate deliverable to support City Council consideration of appropriate commercial linkage fee levels, EPS is providing fee level recommendations.

Maximum Fee Adjusted Maximum [1]
per sq. ft. per sq. ft.

Retail/Restaurant/Serv ices $587 $485
Office/R&D/Medical Offices $578 $478
Lodging $493 $408
Industrial $198 $164
Warehousing $151 $125
Source: Economic & Planning Systems, Inc.
[1] Adusted to avoid potential double-counting of the 17.3% of people who work in Palm Springs and also live in Palm Springs (as of 2019 LEHD data).

Employment Category
Item 3C - Page 46
Draft Report
Palm Springs Commercial Linkage Fee Nexus Study
07/07/2023

Economic & Planning Systems, Inc. 3 Palm Springs_Commercial Linkage Fee_Draft Nexus Study_07July2023.docx Table 2 Riverside County Income Category Definitions (2023)

Primary Sources
To estimate the fee, EPS relied on numerous sources of data, including the following:
 JobsEQ, which is a software tool that compiles industry and wage occupation data for 2021 from a variety of sources, including U.S. Census Bureau, Bureau of Labor Statistics, Bureau of Economic Analysis, National Center of Education Statistics, and others  U.S. Bureau of Labor Statistics (BLS) "May 2020 National Industry-Specific Occupational Employment and Wage Estimates"
 State Department of Housing and Community Development (HCD) annual income limits for 2023
 U.S. Census Bureau American Community Survey (ACS) 5-Year Estimates (2017-2021)  Input from City of Palm Spring’s staff regarding affordability levels, recently developed affordable housing projects, market assumptions, and nexus study methodology These and other data sources are identified on the tables provided throughout this report. In addition, data from recent Palm Springs developments and land transactions have been combined with information collected from various market-rate and affordable housing developers to estimate appropriate development cost assumptions for use in Palm Springs.

Organization of Report
Following this Introduction and Executive Summary, this study includes the following chapters:
 Chapter 2 summarizes the required nexus findings of the Study.  Chapter 3 describes the methodology used to calculate the fee.

Income Group and Standard Definition HCD 2023 Maximum Income 3-Person Household
Extremely Low ≤30% AMI $25,200
Very Low >30% to ≤50% AMI $41,950
Low >50% to ≤ 80% AMI $67,100
Median 100% AMI $85,050
Moderate >80% AMI to ≤120% AMI $102,050
Above Moderate >120% AMI > $102,050
Source: California Department of Housing and Community Development Item 3C - Page 47

Economic & Planning Systems, Inc. 4 Palm Springs_Commercial Linkage Fee_Draft Nexus Study_07July2023.docx

2. REQUIRED NEXUS FINDINGS FOR FEE PROGRAM
The following section confirms that this Nexus Study contains the findings required under the Mitigation Fee Act for the establishment of a development impact fee, should the City Council decide to proceed with adoption of a commercial linkage fee program.

Background
The City of Palm Springs (City) has not previously adopted a commercial linkage fee for affordable housing. Given that the City is in the process of updating its Housing Element, and addressing a number of changes in local housing supply, regional housing needs, and broader economic and housing trends, the City retained Economic & Planning Systems, Inc. (EPS) to explore the feasibility of an affordable housing impact fee for new commercial (i.e., nonresidential) development.

Authority
This study serves as the basis for requiring development impact fees under AB 1600 legislation, as codified by the Mitigation Fee Act (California Government Code sections 66000 et seq.). This section of the Mitigation Fee Act sets forth the procedural requirements for establishing and collecting development impact fees. These procedures require that a reasonable relationship, or nexus, must exist between a governmental exaction and the purpose of the condition.

In 1991, the Ninth Circuit U.S. Court of Appeals upheld the City of Sacramento’s nonresidential linkage fee.
2 In that case, the court found that the City of Sacramento’s fee program “substantially advanced a legitimate interest.” EPS is using a similar methodology to the nexus study reviewed in that case to develop the City of Palm Spring’s fee program.

Required Nexus Findings
The Mitigation Fee Act clearly identifies the required nexus findings.

Required Nexus Findings
 Identify the purpose of the fee.
 Identify how the fee is to be used.
 Determine how a reasonable relationship exists between the fee’s use and the type of development project on which the fee is imposed.
 Determine how a reasonable relationship exists between the demand for the affordable housing and the type of development project on which the fee is imposed.  Demonstrate a reasonable relationship between the amount of the fee and the cost of the public benefit attributable to the development on which the fee is imposed.

2 Commercial Builders of Northern California v. City of Sacramento, 941 F2d 872 (1991).

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The fee program established through this Nexus Study will fund the development and preservation of affordable housing in the City to serve lower-wage workers employed by new nonresidential development.

Use of Fee
The fee will be collected by the City. The funds are used to assist in the production or rehabilitation of affordable housing units and/or the acquisition of land or existing at-risk units in the City. The fee may also fund the studies and administration to support the fee program.

Relationship between Use of Fee and Type of Development New commercial development in the City will generate new jobs. Some portion of the workers in those jobs will not earn wages high enough to afford rent prices necessary to support new residential development without subsidy. The linkage fee will be used to help fund this subsidy, resulting in the development of residential units affordable to the local workforce.

Relationship between Demand for Affordable Housing and Type of Project The City and EPS have identified five commercial land use categories for which a separate fee has been calculated. The proportion of lower wage workers and the number of square feet per employee for each employment category has been assessed to ensure a proper nexus is established.

Relationship between Amount of Fee and Cost of Public Benefit Attributed to New Development
EPS estimated the difference between the cost of developing new rental housing and the value of the new rental units based on rents affordable to workers at wages typical of businesses in different commercial land uses. The affordable rents yielded unit values below the cost of construction, indicating an “affordability gap.” To estimate the fee for each Commercial Land Use, this gap was multiplied by the anticipated number of lower wage workers generated by the new development projects and the number of households of various income categories those workers are likely to form.

Assembly Bill 602 Provisions
AB 602 passed in the California Assembly in 2021 and was signed by the Governor. The legislation adds some new requirements for impact fees in addition to those required under AB 1600. While much of the intent of AB 602 was to clarify and limit impact fees applied to residential development, certain aspects of AB 602 may also apply to nonresidential development.

Existing Level of Service
Under Government Code 66016.5, AB 602 requires that an impact fee nexus study “identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate.” Item 3C - Page 49
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Economic & Planning Systems, Inc. 6 Palm Springs_Commercial Linkage Fee_Draft Nexus Study_07July2023.docx The City of Palm Springs currently has 1,375 assisted multifamily housing units for an employment base of 19,144 workers.3 This represents a ratio of 0.07 assisted affordable rental units per worker. The “adjusted maximum” linkage fee levels identified herein would allow the City to subsidize a similar or greater number of affordable units per worker – 0.6 per retail/restaurant/services worker, 0.4 per office/R&D/medical office worker, 0.7 per lodging worker, 0.6 per industrial worker, and 0.7 per warehouse worker. 4 These higher proportions may
be appropriate given the shortfall of such affordable units in the city, region, and state, and the demonstrated impacts of new commercial development on the City’s need for affordable housing.

As an example of public policy reflecting that shortfall, the State’s Regional Housing Needs Allocation (RHNA) process has indicated that Palm Springs should aim to produce 2,557 total housing units between 2021 and 2029, including 1,414 units priced at moderate or lower incomes, and this target would represent a significant increase in the pace of both targeted and actual affordable housing production in recent years.

Collection of Fees at Previous Levels
Under Government Code 66016.5, AB 602 requires that “if a nexus study supports the increase of an existing fee, the local agency shall review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee.” The City has not previously adopted a commercial linkage fee nexus study or fee program. The City of Palm Springs wishes to use the commercial linkage fee program to generate revenue to increase the number of deed-restricted affordable housing as new workers are added to the local employment base.

Capital Improvement Plan
Under Government Code 66016.5, AB 602 requires that “large jurisdictions shall adopt a capital improvement plan as a part of the nexus study.” Under Government Code 66002, “any local agency which levies a fee subject to Section 66001 may adopt a capital improvement plan, which shall indicate the approximate location, size, time of availability, and estimates of cost for all facilities or improvements to be financed with the fees.” Capital improvement plans typically include specific infrastructure projects and public facilities rather than affordable housing developments, and affordable housing is not listed in the statute as the type of “facility” or “improvement” for which a capital improvement plan must be adopted. However, the City has expressed its intent to support the permitting and construction of affordable housing units as specified in the State’s RHNA process, including 1,414 moderate and lower income units. These units may be located in various areas within the City’s boundaries, may range from single units to larger complexes of 100 or more units, and are intended to be permitted and/or developed by 2029. This nexus study estimates the costs to develop such units, less their value as income-

3 Assisted rental unit count is from the Palm Springs Housing Element draft as of May 2023 (Table 3- 18) (https://www.palmspringsca.gov/home/showdocument?id=84606&t=638149115590403945). The employment base is from the US Census Bureau, ACS, Five-Year Estimates, 2021. 4 Proportions are calculated as the number of affordable units that could be subsidized by the maximum fee on a 100,000 square foot space, discounted by 17.3 percent of that figure given commute patterns to reflect the “adjusted maximum” (as shown on Tables 8-12) and then divided by the total number of employees that would work in a given building size (as shown on Table 6).

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3. METHODOLOGY AND FEE CALCULATION
Land Use Categories
The commercial land uses analyzed in this study are presented in Table 3, along with a description of the types of businesses that are included in each category. In general, each land use category is intended to be associated with a particular type of building or land use, to which the fees can be applied. The City has asked EPS to evaluate five distinct land use categories, but the City may choose not to adopt fees for all land use categories. While most land use categories are discretely associated with a particular type of building, others may be interchangeable as tenants may shift between building types (e.g., businesses located in industrial space moving to office/R&D space). This analysis bases its employment projections on NAICS codes associated with the most typical tenants for each land use category, as defined in Appendix B.

Table 3 Land Use Category Descriptions

Land Use Category Description and Examples
Retail/Restaurant/Services Businesses selling merchandise, entertainment, and personal services to the general public. Examples include grocery stores, drug stores, clothing stores, general merchandise stores, beauty salons, and gas stations. Restaurants are also included in this category.

Office/R&D/Medical Offices Employers engaged in business activity with limited direct access from the general public; businesses focused on professional and financial services. Examples include finance, insurance, real estate, law, engineering, medical offices, and science and technology.

Lodging Lodging or short-term accommodations for travelers, vacationers, and others in facilities known as hotels, motor hotels, resort hotels, and motels.

Industrial Employers engaged in business activity with limited direct access from the general public; businesses focused on assembling, distributing, or repairing products; businesses focused on the testing and invention of new materials, products, or processes; and businesses engaged in the transformation of raw materials into consumable products. Examples include auto repair, self-storage facilities, and food/beverage products manufacturing.

Warehousing Employers engaged in business activity with limited direct access from the general public; businesses specifically focused on the storage and distribution of goods.

Source: Economic & Planning Systems, Inc.

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The following section details the methodology for estimating the distribution of household income levels for new worker households in the City, and the number of these households that will be generated by new development in each commercial land use category.

Occupational Category and Wage Distribution
The first step in determining the number of new worker households requiring affordable residential units is to associate each land use type with occupational categories and the wage distribution within those categories. This estimate included the following analytical steps:
 EPS used JobsEQ to calculate the proportion of occupations likely to be represented under each land use category in the Riverside-San Bernardino-Ontario Metropolitan Statistical Area (MSA). For example, EPS evaluated the occupation categories within the lodging industry to determine the proportional distribution of occupations for the land use category “Lodging.” Using JobsEQ, the North American Industry Classification System (NAICS) sector 721000 (“Accommodation”) for Riverside-San Bernardino-Ontario MSA shows that 6.70 percent of the jobs in the lodging industry nationwide are filled by managers, while 24.25 percent are in the category of buildings and grounds cleaning and maintenance (see Table B-3). The occupational distribution for all designated employment categories is provided in Appendix B. In addition to the distribution of occupation, JobsEQ is able to provide the average wage for each occupation category in each land use category.

 The wages for each occupation were multiplied by 1.33, the average number of workers per working household in the City.
5 The resulting figure represents estimated annual
household income under the assumption that all workers in a household have similar earning potential. While certainly there will be some variation in wages per employee within a household, in the absence of more specific data, this analysis assumes comparable levels of education and training and thus hourly earnings among all workers in a household.

Table 4 presents an example of how household income is calculated for each occupational category and the corresponding income category for that household.

5 From the Census Bureau’s American Community Survey.

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Economic & Planning Systems, Inc. 10 Palm Springs_Commercial Linkage Fee_Draft Nexus Study_07July2023.docx Table 4 Illustration of Employee s' Household Income Calculation

Item Source Example
Employment Category City of Palm Springs and EPS Lodging Industry JobsEQ Accommodation (NAICS Code 721000)
Occupation Category JobsEQ Buildings and Grounds Cleaning and Maintenance Median Wage for the Riverside-San Bernardino-Ontario MSA for Occupation within Industry JobsEQ $36,000
Workers per Household American Community Survey 5-Year Estimates 2021 1.33 Median Income per Household Workers per HH Multiplied by Med. Annual Wage $47,880 Income Category for 3-person Household California Housing and Community Development (HCD) Low Sources: City of Palm Springs; California Housing and Community Development (HCD); JobsEQ, 2021; U.S. Census American Community Survey 5-Year Estimates 2021; Economic & Planning Systems, Inc.

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After identifying income ranges for each occupation category, EPS summed the percentages of the households in each income bracket across all occupations represented in the land use categories. These estimates of the proportion of worker households in each income brackets by land use category are presented in Table 5.

As illustrated, only Lodging is expected to generate a very small number of households at a the very low-income levels. Retail/Restaurant/Services, Lodging, and Warehousing are expected to generate significant numbers of households at the low-income level, while jobs in the Office/R&D/Medical Offices and Industrial uses are expected to yield more households with incomes at or above moderate-income levels. See Appendix B for details regarding the distribution of occupations and wages within each land use type.

Employment Densities
Different land use categories operate with varying levels of employment densities. A 100,000 square foot hotel, for example, typically has fewer employees than an office building of the same size. The number of building square feet anticipated for an employee is termed the “employment density” of each land use category.

Based on input from City staff, independent research, and experience with other comparable cities, EPS estimated the employment density for each of the land use categories (detailed in Appendix Table A-1). Using these employment density assumptions, EPS estimated the number of employees that would occupy a prototype 100,000-square foot building for each land use category, as shown in Table 6.

Household Formation
After calculating the estimated number of new employees generated for each land use category, EPS estimated the number of households represented by these new employees, detailed in Table 6. To calculate new households, EPS first adjusted the number of workers expected to form new households, accounting for those workers who are typically too young (aged 16 to 19) to form their own households.
6 The resulting adjusted estimate of new workers was divided by

1.33, which represents the average number of workers per households in Palm Springs.7

6 Data from the Bureau of Labor Statistics indicate this age cohort represents about 2.9 percent of the overall workforce. This proportion was applied to all industries except retail/restaurant/services industries, where the younger worker cohort represent 9.8 percent of the overall industry employment. 7 Based on the Census Bureau’s American Community Survey 2017-2021 data regarding the number of Palm Springs residents who are defined as “workers” in households that have workers.

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Economic & Planning Systems, Inc. 12 Palm Springs_Commercial Linkage Fee_Draft Nexus Study_07July2023.docx Table 5 Income Distribution of Worker Households by Employment Category

Employment Category [1] Very Low Low Moderate Above Moderate 50% AMI 80% AMI 120% AMI >120% AMI
Retail/Restaurant/Serv ices 0.0% 93.1% 1.5% 5.4%
Office/R&D/Medical Offices 0.0% 48.3% 12.4% 39.3%
Lodging 0.4% 89.1% 3.8% 6.8%
Industrial 0.0% 29.5% 57.8% 12.7%
Warehousing 0.0% 78.6% 14.9% 6.6%
Sources: JobsEQ, 2021; California Housing and Community Development (HCD); Economic & Planning Systems, Inc.

Income Level
[1] Designation of household income assumes a 3-person household and 1.33 workers per household, based on American Community Survey data.

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Economic & Planning Systems, Inc. 13 Palm Springs_Commercial Linkage Fee_Draft Nexus Study_07July2023.docx Table 6 Household Generation Ra tes by Employment Category

% of Workers Total
Employment Sq.Ft. per Total Workers Forming Households per Very Low Low Moderate Above Moderate Category Worker1 per 100k Sq.Ft. Households2 100k Sq.Ft.3, 4 50% AMI 80% AMI 120% AMI >120% AMI Retail/Restaurant/Services 400 250 90.2% 170 0 158 3 9
Office/R&D/Medical Offices 250 400 97.1% 292 0 141 36 115 Lodging 500 200 97.1% 146 1 130 6 10
Industrial 750 133 97.1% 97 0 29 56 12
Warehousing 1,500 67 97.1% 49 0 38 7 3
[1] See Appendix Table A-1 for sources on employment densities in different land uses. [3] Assumes 1.33 workers per household based on Census data; rounded. [5] Figures are rounded to nearest whole number.

Households by Income Level 5
[2] U.S. Bureau of Labor Statistics data indicates that 9.8% of retail/restaurant workers are aged 16-19, but an average of only 2.9% of workers in other industries fall into that age cohort. EPS has assumed that workers aged 16-19 do not form their own households. [4] This maximum nexus-based fee calculation assumes that Palm Springs fees account for all worker households generated by new employers in City of Palm Springs, though some workers and their households may choose to reside outside of Palm Springs. Total number of households may not match sum of households by income level due to Sources: U.S. Census American Community Survey 5-Year Estimates 2021; JobsEQ, 2021; California Housing and Community Developmen t (HCD); Economic & Planning Sy stems, Inc.

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Economic & Planning Systems, Inc. 14 Palm Springs_Commercial Linkage Fee_Draft Nexus Study_07July2023.docx Housing Development Cost s and Affordability Gap
To calculate the maximum justifiable fee for each land use category, EPS estimated the “affordability gap” related to developing residential units affordable to very-low, low, and moderate-income households. The average household size in Palm Springs is 1.87 people per household according to 2021 Five-Year Estimates from the American Community Survey (ACS), but the average number of people, per working household (households with earnings – not including retired households, etc.) is 3.10. Thus, this analysis estimates the costs of providing affordable housing for a three-person household, to represent the average size of working households (rounded). California State law (California Health and Safety Code Section 50052.5) assumes that a three-person household would occupy a two-bedroom unit, and this assumption is used in this analysis.

The assumed prototype reflects multifamily construction at 54 dwelling units to the acre with surface parking, assuming the State Density Bonus is used, and consistent with City staff representations of the general type of multifamily projects being built in Palm Springs. The prototype assumes the State Density is used, which increases the base density allowed by the City’s zoning by 80 percent. This building prototype is generally cost-effective to construct, as it makes efficient use of land and does not involve overly expensive construction materials or techniques. Based on comparable recent projects in the vicinity of Palm Springs, EPS assumes that the typical net square footage of a two-bedroom rental unit in Palms Springs will be approximately 900 square feet.

Development Cost Assumptions
Affordable housing development costs include land costs, direct costs (e.g., labor and materials), and indirect or “soft” costs (e.g., architecture, entitlement, marketing, etc.). Data from recent land transactions in and around Palms Springs have been combined with EPS’s information from various market-rate and affordable housing developers in the surrounding region to estimate appropriate development cost assumptions for use in Palm Springs. A developer fee is also estimated, and represents the compensation to the developer for their efforts, investment, and risk. These assumptions are shown on Table 7 and indicate that the total cost per unit for rental apartments is about $463,000. By necessity, this figure represents a “prototypical” project; the actual costs for a given project will vary by location and project design characteristics.

Revenue Assumptions
Assumptions must be made regarding the applicable income level (very-low, low, and moderate) and the percentage of household income spent on housing costs to calculate the values of the affordable units. In addition, translating these assumptions into unit prices and values requires estimates of operating expenses and capitalization rates. The following assumptions were used in these calculations:
 Income Levels— This analysis estimates the subsidy required to produce units for households falling into the very low, low, and moderate-income categories for a three-person household.

While these categories are generally defined as a percentage of area median income (AMI) by HCD. In Riverside County the dollar amount thresholds for each category are in line with Item 3C - Page 58
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Economic & Planning Systems, Inc. 15 Palm Springs_Commercial Linkage Fee_Draft Nexus Study_07July2023.docx the percentage thresholds.8 EPS has assumed the maximum income level allowable for the Very Low category but has defined Low as “Lower” at 60 percent AMI and Moderate at 110 percent AMI, consistent with State Density Bonus guidelines. This assumption is conservative in that it does not assume households earn at the very top of the income range.  Percentage of Gross Household Income Available for Housing Costs— HCD standards on overpaying for rent indicate that households should pay no more than 30 percent of their gross income on housing cost.9 For this analysis, EPS has assumed that all households shall spend 30 percent of their gross income on housing costs, including the cost of utilities stated by the Riverside County utility allowance schedule.
 Operating Costs for Rental Units— This analysis assumes that apartment operators incur annual operating costs of $7,500 per unit for below market rate housing for units affordable for those falling into the very low and low-income categories. EPS has assumed the units for moderate-income households would have similar operating costs but would be built by for- profit builders and thus also subject to property taxes, increasing their annual operating cost to $10,000 per unit.

Affordability Gap Results
Table 7 shows the costs and values for developing rental apartments in the City for households at various income levels. Across all categories, the cost of constructing the unit is higher than the supportable value of the unit. This is considered the “affordability gap,” and serves as the basis for calculating the subsidies required to provide housing for the lower-wage worker households generated by new nonresidential development. The results of the analysis illustrate that rents affordable to households earning moderate incomes and below cannot support the costs of new construction without subsidy.

8 See HCD State Income Limits 2023 for Riverside County, https://www.hcd.ca.gov/sites/default/files/docs/grants- and-funding/income-limits-2023.pdf
9 See HCD standards for Overpayment and Overcrowding, Building Blocks: Housing Needs - Overpayment and Overcrowding (ca.gov)
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Economic & Planning Systems, Inc. 16 Palm Springs_Commercial Linkage Fee_Draft Nexus Study_07July2023.docx Table 7 Affordability Gap Analysis – Rental Product Type

Item
Very Low
Income
Lower
Income [1]
Moderate
Income [2]
50% AMI 60% AMI 110% AMI
Development Program Assumptions
Density/Acre [3] 545 45 4
Gross Unit Size 900 900 900
Number of Bedrooms 2 2 2
Occupants per 2-bedroom Unit [4] 3 3 3
Parking Spaces/Unit [5] 1.00 1.00 1.00
Project Development Cost Assumptions (1-Acre Site)
Land Acquisition and Site Improvement [6] $2,590,000 $2,590,000 $2,590,000 Direct Development Costs [7] $15,457,500 $15,457,500 $15,457,500 Indirect Development Costs [8] $3,864,375 $3,864,375 $3,864,375 Developer Fee $3,067,663 $3,067,663 $3,067,663
Total Development Costs $24,979,538 $24,979,538 $24,979,538 per Unit Development Costs $462,584 $462,584 $462,584
Maximum Supported Home Price
Household Income [9] $41,950 $51,030 $93,555
Income Available for Housing Costs/Year [10] $9,489 $12,213 $24,971 (less) Operating Expenses per Unit/Year [11] ($7,500) ($7,500) ($10,000) Net Operating Income $1,989 $4,713 $14,971
Capitalization Rate [12] 5.0% 5.0% 5.0%
Total Supportable Unit Value [13] $39,780 $94,260 $299,410 Affordability Gap $422,804 $368,324 $163,174
[1] Assuming the State Density Bonus is used, the rents for Lower-income households will need to be affordable to households with earnings of not greater than 60% AMI.
[2] A stand-alone Moderate-income rental project would not qualify for the State Density Bonus, but as part of a 100% affordable project that includes Lower-income units, moderate-income rental units are allowed. The rents for Moderate- income households are assumed to be affordable to households with earnings of not greater than 110%.

Multifamily Rental Apartments
with Structure Parking
[3] Reflects highest allowable densities in high-density residential zones in Palm Springs (30 dwelling units per acre) and assumes an 80% state density bonus for 100% affordable projects. [4] Consistent with guidance in State law (Health and Safety Code Section 50052.5), a 2-bedroom unit should be assumed to be occupied by a 3-person household.
[5] Typical parking requirement in high-density residential zone is 1.5 spaces per unit plus guest parking. This analysis assumes state density bonus parking concession is used to improve development economics. [8] Includes costs for architecture and engineering; project management; appraisal and market study; marketing, commissions, and general administration; financing and charges; insurance; and contingency. [6] Includes land acquisition, site preparation costs, entitlement consultants, and fees/permits. Land acquisition value reflects a weighted average, based on vacant, residentially-zoned land transactions in Riverside County during the past four years, as reported by CoStar. Estimate aligns with figures provided by local developers but can vary widely. [7] Includes on-site work, offsite work, vertical construction, general requirements, overhead and builder fees. The cost estimate reflects wood-frame construction. Assumes workers are paid prevailing wage.

Sources: City of Palm Springs; Riverside County Housing Authority; California Housing and Community Development (HCD); CoStar; Economic & Planning Systems, Inc.
[13] The total supportable unit value is determined by dividing the net operating income by the capitalization rate. [9] Incomes are based on 2022 HCD Income Limits for three-person households in Riverside County and revised to reflect State Density Bonus Law affordability requirements.
[10] Assumes that no more than 30% of a household's income should be spent on housing-related costs for housing to be considered affordable, subtracting cost of utilities based on the Riverside County Housing Authority. [11] Operating expenses are generally based on EPS feasibility studies in the region and are inclusive of utility costs; lower- income units (at or below 80% of AMI) are assumed to be built as non-profit and are, therefore, exempt from property taxes.

Property taxes are assumed to comprise a share of the operating expenses for the moderate-income category. [12] The capitalization rate is used to determine the current value of a property based on estimated future operating income, and is typically a measure of estimated operating risk.

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Table 8 through Table 12 provide the maximum nonresidential housing fee calculations for each of the three land use categories.

The fee is calculated by the following steps:

1. Estimate the number of new households by income category generated by a prototype 100,000-square foot building in the land use category.

2. Multiply the number of households generated by the per-unit affordability gap (as calculated in Table 8) to determine the level of subsidy required to provide housing in Palm Springs for all new worker households.

3. Divide the total affordability gap by 100,000 square feet (the size of the prototype building) to determine a maximum fee per building square foot.

The “Maximum Fee per Square Foot” calculated in the following tables represents the maximum justifiable linkage fee that the City can charge for each land use category based on the required nexus findings. The City may, however, decide to adopt fees below the maximum justifiable levels based on economic or policy considerations. For example, EPS has calculated an “Adjusted Maximum” fee reflecting the idea that not every employee of newly developed workplaces will in fact reside in Palm Springs. According to the most recently available data from the US Census Bureau’s American Community Survey, only 17.3 percent of people who work in Palm Springs also live in Palm Springs. EPS has applied that proportion to the “Maximum Fee” to calculate an “Adjusted Maximum” for each land use category. To be clear, however, this type of adjustment is not legally required, but does yield a lower fee.

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Economic & Planning Systems, Inc. 18 Palm Springs_Commercial Linkage Fee_Draft Nexus Study_07July2023.docx Table 8 Fee Calculation – Retail/Restaurant/Services

Worker
Households Affordability Gap Total Gap
Item per 100k sq. ft. per household
Table References: Table 6 Table 7
Aggregate Financing Gap per 100K Sq. Ft
Affordability Level
Very Low Income 0 $422,804 $0
Low Income 158 $368,324 $58,195,196
Moderate 3 $163,174 $489,522
Total 161 $58,684,718
Fee Calculation formula
Total Financing Gap a $58,684,718
Total Building Sq. Ft. b 100,000
Maximum Fee per Sq. Ft. c = a / b $586.85
Adjustment for % of Workers Living in Palm Springs [1] 17.3% Adjus ted Fee per Sq. Ft. $485.32
Sources: US Census Bureau "On The Map"; Economic & Planning Systems, Inc. [1] The US Census Bureau indicates that 17.3% of people working in Palm Springs also lived in Palm Springs in 2019 (most recent data available).

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Economic & Planning Systems, Inc. 19 Palm Springs_Commercial Linkage Fee_Draft Nexus Study_07July2023.docx Table 9 Fee Calculation – Office/R&D/Medical Offices

Worker
Households Affordability Gap Total Gap
Item per 100k sq. ft. per household
Table References: Table 6 Table 7
Aggregate Financing Gap per 100K Sq. Ft
Affordability Level
Very Low Income 0 $422,804 $0
Low Income 141 $368,324 $51,933,688
Moderate 36 $163,174 $5,874,265
Total 177 $57,807,953
Fee Calculation formula
Total Financing Gap a $57,807,953
Total Building Sq. Ft. b 100,000
Maximum Fee per Sq. Ft. c = a / b $578.08
Adjustment for % of Workers Living in Palm Springs [1] 17.3% Adjusted Fee per Sq. Ft. $478.07
Sources: US Census Bureau "On The Map"; Economic & Planning Systems, Inc. [1] The US Census Bureau indicates that 17.3% of people working in Palm Springs also lived in Palm Springs in 2019 (most recent data available).

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Economic & Planning Systems, Inc. 20 Palm Springs_Commercial Linkage Fee_Draft Nexus Study_07July2023.docx Table 10 Fee Calculation – Lodging

Worker
Households Affordability Gap Total Gap
Item per 100k sq. ft. per household
Table References: Table 6 Table 7
Aggregate Financing Gap per 100K Sq. Ft
Affordability Level
Very Low Income 1 $422,804 $422,804
Low Income 130 $368,324 $47,882,124
Moderate 6 $163,174 $979,044
Total 137 $49,283,972
Fee Calculation formula
Total Financing Gap a $49,283,972
Total Building Sq. Ft.1 b 100,000
Maximum Fee per Sq. Ft. c = a / b $492.84
Adjustment for % of Workers Living in Palm Springs [1] 17.3% Adjus ted Fee per Sq. Ft. $407.58
Sources: US Census Bureau "On The Map"; Economic & Planning Systems, Inc. [1] The US Census Bureau indicates that 17.3% of people working in Palm Springs also lived in Palm Springs in 2019 (most recent data available).

Item 3C - Page 64
Draft Report
Palm Springs Commercial Linkage Fee Nexus Study
07/07/2023

Economic & Planning Systems, Inc. 21 Palm Springs_Commercial Linkage Fee_Draft Nexus Study_07July2023.docx Table 11 Fee Calculation – Industrial

Worker
Households Affordability Gap Total Gap
Item per 100k sq. ft. per household
Table References: Table 6 Table 7
Aggregate Financing Gap per 100K Sq. Ft
Affordability Level
Very Low Income 0 $422,804 $0
Low Income 29 $368,324 $10,681,397
Moderate 56 $163,174 $9,137,746
Total 85 $19,819,142
Fee Calculation formula
Total Financing Gap a $19,819,142
Total Building Sq. Ft.1 b 100,000
Maximum Fee per Sq. Ft. c = a / b $198.19
Adjustment for % of Workers Living in Palm Springs [1] 17.3% Adjus ted Fee per Sq. Ft. $163.90
Sources: US Census Bureau "On The Map"; Economic & Planning Systems, Inc. [1] The US Census Bureau indicates that 17.3% of people working in Palm Springs also lived in Palm Springs in 2019 (most recent data available).

Item 3C - Page 65
Draft Report
Palm Springs Commercial Linkage Fee Nexus Study
07/07/2023

Economic & Planning Systems, Inc. 22 Palm Springs_Commercial Linkage Fee_Draft Nexus Study_07July2023.docx

Table 12 Fee Calculation – Warehousing
Worker
Households Affordability Gap Total Gap
Item per 100k sq. ft. per household
Table References: Table 6 Table 7
Aggregate Financing Gap per 100K Sq. Ft
Affordability Level
Very Low Income 0 $422,804 $0
Low Income 38 $368,324 $13,996,313
Moderate 7 $163,174 $1,142,218
Total 45 $15,138,531
Fee Calculation formula
Total Financing Gap a $15,138,531
Total Building Sq. Ft.1 b 100,000
Maximum Fee per Sq. Ft. c = a / b $151.39
Adjustment for % of Workers Living in Palm Springs [1] 17.3% Adjus ted Fee per Sq. Ft. $125.20
Sources: US Census Bureau "On The Map"; Economic & Planning Systems, Inc. [1] The US Census Bureau indicates that 17.3% of people working in Palm Springs also lived in Palm Springs in 2019 (most recent data available).

Item 3C - Page 66

APPENDICES:

Appendix A: Assumptions and Sources
Appendix B: Occupation Distribution by
Employment Category
Appendix C: Survey of Commercial Linkage Fees in
Other Jurisdictions

Item 3C - Page 67
•

APPENDIX A:

Assumptions and Sources

Item 3C - Page 68
•

Table A-1
Assumptions and Sources
City of Palm Springs Commercial Linkage Fee Study; EPS #224028 Item Total Unit Source
Demographic Assumptions
Total Employed 19,144 persons American Community Survey 5-Year Estimates 2021 Households 23,673 households American Community Survey 5-Year Estimates 2021 Households with Earnings 14,432 households American Community Survey 5-Year Estimates 2021 Workers per Household with Workers 1.33 persons American Community Survey 5-Year Estimates 2021 Persons per Working Household 3.10 persons American Community Survey 5-Year Estimates 2021 Palm Springs Workers Living in Palm Springs 17.3% of workers US Census Bureau "On The Map" 2019 data Employment Density Assumptions
Retail/Restaurant/Services 400 sq. ft. per employee EPS Professional Industry Assumption Office/R&D/Medical Offices 250 sq. ft. per employee EPS Professional Industry Assumption Lodging 500 sq. ft. per employee EPS Professional Industry Assumption Industrial 750 sq. ft. per employee EPS Professional Industry Assumption Warehousing 1,500 sq. ft. per employee EPS Professional Industry Assumption Sources: U.S. Census American Community Survey 5-Year Estimates 2021;US Census Bureau "On The Map"; Economic & Planning Systems , Inc.

Item 3C - Page 69

APPENDIX B:

Occupation Distribution by Employment Category
Item 3C - Page 70•

Table B-1
Occupation and Wage Distribution - Retail/Restaurant
City of Palm Springs Commercial Linkage Fee Study; EPS #224028 Occupation Category [1] 1.33 workers/HH
Management Occupations $86,122.95 3.61% $114,543.53 Above Moderate Business and Financial Operations Occupations $64,019.11 1.11% $85,145.41 Moderate Computer and Mathematical Occupations $74,754.95 0.23% $99,424.08 Moderate Architecture and Engineering Occupations $87,399.85 0.02% $116,241.80 Above Moderate Life, Physical, and Social Science Occupations $67,951.04 0.01% $90,374.88 Moderate Community and Social Service Occupations $47,395.40 0.01% $63,035.89 Low Legal Occupations $80,688.16 0.01% $107,315.26 Above Moderate Educational Instruction and Library Occupations $45,254.32 0.03% $60,188.24 Low Arts, Design, Entertainment, Sports, and Media Occupations $44,962.15 0.58% $59,799.66 Low Healthcare Practitioners and Technical Occupations $82,129.84 1.71% $109,232.69 Above Moderate Healthcare Support Occupations $45,738.65 0.37% $60,832.41 Low Protective Service Occupations $40,219.13 0.30% $53,491.44 Low Food Preparation and Serving Related Occupations $32,976.71 37.59% $43,859.02 Low Building and Grounds Cleaning and Maintenance Occupations $36,375.44 0.64% $48,379.33 Low Personal Care and Service Occupations $35,711.02 2.67% $47,495.65 Low Sales and Related Occupations $35,804.97 29.81% $47,620.61 Low Office and Administrative Support Occupations $41,518.23 5.10% $55,219.25 Low Farming, Fishing, and Forestry Occupations $32,669.27 0.14% $43,450.12 Low Construction and Extraction Occupations $52,146.60 0.17% $69,354.97 Moderate Installation, Maintenance, and Repair Occupations $50,117.66 2.75% $66,656.49 Low Production Occupations $36,579.40 2.08% $48,650.61 Low
Transportation and Material Moving Occupations $36,306.27 11.06% $48,287.34 Low Total or Weighted Average $38,659.50 100.00% $51,417.13 [1] Includes NAICS Sectors: 44 and 45 - Retail Trade; 532000 - Rental and Leasing Services; 812000 - Personal and Laundry Services; and 722000 - Food Services and Drinking Places.

Sources: JobsEQ, 2021; U.S. Census American Community Survey 5-Year Estimates 2021; Economic & Planning Systems, Inc.

Income Category
HH Income at
Retail/Restaurant/Services
Riverside-San
Bernardino-Ontario
MSA Average Wage
% of Industry Jobs in
Occupation Category
Item 3C - Page 71

Table B-2
Occupation and Wage Distribution - Office/R&D/Medical Offices City of Palm Springs Commercial Linkage Fee Study; EPS #224028 Occupation Category [1] 1.33 workers/HH
Management Occupations $126,943.94 7.75% $168,835.44 Above Moderate Business and Financial Operations Occupations $79,396.56 10.28% $105,597.42 Above Moderate Computer and Mathematical Occupations $95,325.06 5.04% $126,782.33 Above Moderate Architecture and Engineering Occupations $92,083.83 2.57% $122,471.49 Above Moderate Life, Physical, and Social Science Occupations $84,396.22 0.90% $112,246.98 Above Moderate Community and Social Service Occupations $60,633.04 1.40% $80,641.95 Moderate Legal Occupations $115,985.00 1.47% $154,260.04 Above Moderate Educational Instruction and Library Occupations $56,147.24 0.25% $74,675.83 Moderate Arts, Design, Entertainment, Sports, and Media Occupations $69,125.76 1.48% $91,937.26 Moderate Healthcare Practitioners and Technical Occupations $121,013.89 11.26% $160,948.47 Above Moderate Healthcare Support Occupations $40,377.69 5.85% $53,702.33 Low Protective Service Occupations $38,751.44 5.59% $51,539.41 Low Food Preparation and Serving Related Occupations $33,147.69 0.65% $44,086.43 Low Building and Grounds Cleaning and Maintenance Occupations $39,012.22 7.64% $51,886.25 Low Personal Care and Service Occupations $35,471.33 0.75% $47,176.86 Low Sales and Related Occupations $57,006.48 5.42% $75,818.62 Moderate Office and Administrative Support Occupations $44,394.57 18.41% $59,044.78 Low Farming, Fishing, and Forestry Occupations $39,780.53 0.17% $52,908.10 Low Construction and Extraction Occupations $52,419.01 1.16% $69,717.29 Moderate Installation, Maintenance, and Repair Occupations $54,170.32 2.68% $72,046.52 Moderate Production Occupations $34,009.68 3.44% $45,232.88 Low
Transportation and Material Moving Occupations $34,287.65 5.85% $45,602.58 Low Total or Weighted Average $67,825.37 100.00% $90,207.74 Sources: JobsEQ, 2021; U.S. Census American Community Survey 5-Year Estimates 2021; Economic & Planning Systems, Inc.

Office/R&D/Medical Offices
[1] Includes NAICS Sectors: 51 - Information; 52 - Finance and Insurance; 53 - Real Estate and Rental and Leasing (excluding 532000 -Rental and Leasing Services); 54 - Professional, Scientific, and Technical Services; 55 - Management of Companies and Enterprises; 561 - Admin. and Support Services; 6211 - Offices of Phys icians; 6212 - Offices of Dentists; 6213 - Offices of Other Health Practitioners; 6214 - Outpatient Care Centers; and 621500 - Medical and Diagonostic Laboratories.

Income Category
HH Income at
Riverside-San
Bernardino-Ontario
MSA Average Wage
% of Industry Jobs in
Occupation Category
Item 3C - Page 72

Table B-3
Occupation and Wage Distribution - Lodging
City of Palm Springs Commercial Linkage Fee Study; EPS #224028 Occupation Category [1] 1.33 workers/HH
Management Occupations $94,600.00 6.70% $125,818.00 Above Moderate Business and Financial Operations Occupations $52,300.00 2.51% $69,559.00 Moderate Computer and Mathematical Occupations $60,400.00 0.39% $80,332.00 Moderate Architecture and Engineering Occupations $95,300.00 0.05% $126,749.00 Above Moderate Life, Physical, and Social Science Occupations $73,900.00 0.02% $98,287.00 Moderate Community and Social Service Occupations $49,800.00 0.01% $66,234.00 Low Legal Occupations $135,100.00 0.01% $179,683.00 Above Moderate Educational Instruction and Library Occupations $47,200.00 0.07% $62,776.00 Low Arts, Design, Entertainment, Sports, and Media Occupations $54,600.00 0.44% $72,618.00 Moderate Healthcare Practitioners and Technical Occupations $58,200.00 0.03% $77,406.00 Moderate Healthcare Support Occupations $29,600.00 0.38% $39,368.00 Very Low Protective Service Occupations $36,400.00 3.60% $48,412.00 Low Food Preparation and Serving Related Occupations $35,100.00 20.31% $46,683.00 Low Building and Grounds Cleaning and Maintenance Occupations $36,000.00 24.25% $47,880.00 Low Personal Care and Service Occupations $34,300.00 12.27% $45,619.00 Low Sales and Related Occupations $36,100.00 3.62% $48,013.00 Low Office and Administrative Support Occupations $35,300.00 16.57% $46,949.00 Low Farming, Fishing, and Forestry Occupations $38,500.00 0.10% $51,205.00 Low Construction and Extraction Occupations $52,400.00 0.38% $69,692.00 Moderate Installation, Maintenance, and Repair Occupations $45,500.00 5.61% $60,515.00 Low Production Occupations $37,900.00 1.57% $50,407.00 Low
Transportation and Material Moving Occupations $32,800.00 1.11% $43,624.00 Low Total or Weighted Average $40,651.62 100.00% $54,066.65 [1] Includes NAICS Sector: 721000 - Accommodation.

Sources: JobsEQ, 2021; U.S. Census American Community Survey 5-Year Estimates 2021; Economic & Planning Systems, Inc.

Lodging
Riverside-San
Bernardino-Ontario
MSA Average Wage
% of Industry Jobs in
Occupation Category
HH Income at
Income Category
Item 3C - Page 73

Table B-4
Occupation and Wage Distribution - Industrial
City of Palm Springs Commercial Linkage Fee Study; EPS #224028 Occupation Category [1] 1.33 workers/HH
Management Occupations $113,775.63 6.14% $151,321.59 Above Moderate Business and Financial Operations Occupations $79,022.33 4.54% $105,099.69 Above Moderate Computer and Mathematical Occupations $83,817.51 0.43% $111,477.29 Above Moderate Architecture and Engineering Occupations $85,273.64 1.29% $113,413.94 Above Moderate Life, Physical, and Social Science Occupations $80,554.58 0.31% $107,137.60 Above Moderate Community and Social Service Occupations $52,300.00 0.00% $69,559.00 Moderate Legal Occupations $138,416.98 0.03% $184,094.58 Above Moderate Educational Instruction and Library Occupations $55,969.05 0.00% $74,438.83 Moderate Arts, Design, Entertainment, Sports, and Media Occupations $61,067.18 0.13% $81,219.34 Moderate Healthcare Practitioners and Technical Occupations $74,542.86 0.00% $99,142.00 Moderate Healthcare Support Occupations $40,685.71 0.00% $54,112.00 Low Protective Service Occupations $45,110.22 0.08% $59,996.60 Low Food Preparation and Serving Related Occupations $33,998.01 0.01% $45,217.36 Low Building and Grounds Cleaning and Maintenance Occupations $40,635.31 0.47% $54,044.97 Low Personal Care and Service Occupations $32,345.26 0.01% $43,019.20 Low Sales and Related Occupations $60,152.96 2.31% $80,003.44 Moderate Office and Administrative Support Occupations $46,801.68 10.07% $62,246.23 Low Farming, Fishing, and Forestry Occupations $44,880.28 0.08% $59,690.77 Low Construction and Extraction Occupations $61,284.72 40.91% $81,508.68 Moderate Installation, Maintenance, and Repair Occupations $58,444.74 11.40% $77,731.50 Moderate Production Occupations $57,446.04 3.01% $76,403.24 Moderate Transportation and Material Moving Occupations $47,629.07 18.79% $63,346.66 Low Total or Weighted Average $61,186.09 100.00% $81,377.50 [1] Includes NAICS Sectors: 22 - Utilities; 23 - Construction; and 811 - Repair and Maintenance; and 484 - Truck Transportati on.

Sources: JobsEQ, 2021; U.S. Census American Community Survey 5-Year Estimates 2021; Economic & Planning Systems, Inc. % of Industry Jobs in
Occupation Category Income Category
HH Income at
Industrial
Riverside-San
Bernardino-Ontario
MSA Average Wage
Item 3C - Page 74

Table B-5
Occupation and Wage Distribution - Warehousing
City of Palm Springs Commercial Linkage Fee Study; EPS #224028 Occupation Category [1] 1.33 workers/HH
Management Occupations $115,837.47 4.83% $154,063.84 Above Moderate Business and Financial Operations Occupations $71,742.39 3.32% $95,417.38 Moderate Computer and Mathematical Occupations $78,111.55 1.20% $103,888.36 Above Moderate Architecture and Engineering Occupations $90,295.98 0.39% $120,093.65 Above Moderate Life, Physical, and Social Science Occupations $74,674.98 0.19% $99,317.72 Moderate Community and Social Service Occupations $65,998.17 0.00% $87,777.56 Moderate Legal Occupations $122,091.58 0.03% $162,381.80 Above Moderate Educational Instruction and Library Occupations $58,217.65 0.01% $77,429.47 Moderate Arts, Design, Entertainment, Sports, and Media Occupations $51,299.07 0.66% $68,227.76 Moderate Healthcare Practitioners and Technical Occupations $93,627.78 0.11% $124,524.95 Above Moderate Healthcare Support Occupations $46,449.03 0.01% $61,777.21 Low Protective Service Occupations $44,800.36 0.81% $59,584.48 Low Food Preparation and Serving Related Occupations $37,671.42 0.08% $50,102.99 Low Building and Grounds Cleaning and Maintenance Occupations $43,235.88 0.54% $57,503.72 Low Personal Care and Service Occupations $40,454.90 0.01% $53,805.02 Low Sales and Related Occupations $69,705.19 6.89% $92,707.91 Moderate Office and Administrative Support Occupations $44,866.37 12.63% $59,672.27 Low Farming, Fishing, and Forestry Occupations $35,484.59 0.34% $47,194.51 Low Construction and Extraction Occupations $63,616.52 0.24% $84,609.97 Moderate Installation, Maintenance, and Repair Occupations $55,972.89 3.57% $74,443.94 Moderate Production Occupations $40,274.65 2.50% $53,565.29 Low
Transportation and Material Moving Occupations $43,082.89 61.64% $57,300.24 Low Total or Weighted Average $50,833.30 100.00% $67,608.29 [1] Includes NAICS Sectors: 493 - Warehousing & Storage; 484 - Truck Transportation; and 42 - Wholesale Trade.

Sources: JobsEQ, 2021; U.S. Census American Community Survey 5-Year Estimates 2021; Economic & Planning Systems, Inc.

HH Income at
Warehousing
Riverside-San
Bernardino-Ontario
MSA Average Wage
% of Industry Jobs in
Occupation Category Income Category
Item 3C - Page 75

APPENDIX C:

Survey of Commercial Linkage Fees
in Other Jurisdictions
Item 3C - Page 76
•
Appendix C
Commercial Linkage Fee Comparison in Other CA Cities
Land Use Category Palm Desert
[1]
Fontana
[2]
Glendale West
Hollywood
Santa
Monica
San Diego San Luis
Obispo
Napa Palo Alto
Office (Per Sq. Ft.) $0.50 $1.15 $4.00 $9.39 $13.34 $2.12 $6.00 $3.55 $42.90 Retail (Per Sq. Ft.) $1.00 $1.66 $4.00 $9.39 $11.61 $1.28 $6.00 $3.55 $24.97 Industrial (Per Sq. Ft.) $0.33 $0.12 $4.00 $9.39 $8.97 ‐‐ $5.00 $3.50 ‐‐ Hotel (Per Sq. Ft.) $620 (Per Room) $0.71 $4.00 $9.39 $3.65 $1.28 $6.00 $6.00 $24.97 [1] Palm Desert hotel fee shown is for "Non-Resort Hotel". The "Resort Hotel" fee is higher at $1,000 per room.

Source: Economic & Planning Systems, Inc.
[2] Fontana's linkage fee program (San Bernardino County) has additional land use categories of "Hospital/Medical" at $1.43 per sq. ft. and "Warehouse/Distribution" at $0.13 per sq. ft.

Item 3C - Page 77

ATTACHMENT D

Item 3C - Page 78

LIST OF HOUSING SITES

SITE APN STATUS ACREAGE GENERAL PLAN ZONING TRIBAL/PRIVATE TYPE 1 508086003 Vacant 1.99 HDR HR Tribal-Allottee APTS
2 508087008 Vacant 2.05 HDR HR Tribal-Allottee APTS
3 508110019 Vacant 3.15 HDR HR Tribal-Allottee APTS
4 508110053 Vacant 5.24 HDR HR Tribal-Allottee APTS
5 508093001 Vacant 2.12 HDR HR Tribal-Allottee APTS
6 508093010 Vacant 0.64 HDR HR Tribal-Allottee APTS
7 508092006 Vacant 0.95 HDR HR Tribal-Allottee APTS
8 508093012 Vacant 1.52 HDR HR Tribal-Allottee APTS
9 513280005 Vacant 3.96 HDR R3 Tribal-Allottee APTS
10 501101029 Vacant 3.38 MDR R2 Tribal-Allottee APTS
11 669420011 Vacant 1.03 MDR R2 Private APTS
11 669420014 Vacant 3.51 MDR R2 Private APTS
12 508093007 Vacant 3.98 HDR HR Tribal-Allottee APTS
13 504260004 Vacant 0.36 MDR R2 Private 2-4 DU
13 504260005 Vacant 0.43 MDR R2 Private 2-4 DU
14 504260034 Vacant 0.21 MDR R2 Private 2-4 DU
14 504260011 Vacant 0.22 MDR R2 Private 2-4 DU
14 504260032 Vacant 0.24 MDR R2 Private 2-4 DU
14 504260003 Vacant 0.24 MDR R2 Private 2-4 DU
14 504260012 Vacant 0.25 MDR R2 Private 2-4 DU
14 504260016 Vacant 0.26 MDR R2 Private 2-4 DU
14 504260015 Vacant 0.26 MDR R2 Private 2-4 DU
14 504260009 Vacant 0.27 MDR R2 Private 2-4 DU
14 504260008 Vacant 0.27 MDR R2 Private 2-4 DU
14 504260007 Vacant 0.27 MDR R2 Private 2-4 DU
14 504260006 Vacant 0.28 MDR R2 Private 2-4 DU
14 504260001 Vacant 0.29 MDR R2 Private 2-4 DU
14 504260033 Vacant 0.32 MDR R2 Private 2-4 DU
14 504260002 Vacant 0.35 MDR R2 Private 2-4 DU
14 504260028 Vacant 0.35 MDR R2 Private 2-4 DU
14 504250003 Vacant 0.56 MDR R2 Private 2-4 DU
14 504260020 Vacant 1.27 MDR R2 Private 2-4 DU
14 504250004 Vacant 1.81 MDR R2 Private 2-4 DU
15 504091009 Vacant 0.25 MU RGA6 Private 2-4 DU
15 504091010 Vacant 0.26 MU RGA6 Private 2-4 DU
15 504091013 Vacant 0.27 MU RGA6 Private 2-4 DU
15 504091014 Vacant 0.30 MU RGA6 Private 2-4 DU
15 504091008 Vacant 0.33 MU RGA6 Private 2-4 DU
16 504260024 Vacant 0.17 MDR R2 Private 2-4 DU
17 504260010 Vacant 0.29 MDR R2 Private 2-4 DU
18 669420012 Vacant 0.51 MDR R2 Private APTS
19 669414018 Vacant 0.07 MDR R2 SP Private 2-4 DU
20 669414051 Vacant 0.09 MDR R2 SP Private 2-4 DU
21 669414052 Vacant 0.09 MDR R2 SP Private 2-4 DU
22 669414050 Vacant 0.09 MDR R2 SP Private 2-4 DU
23 669414048 Vacant 0.17 MDR R2 SP Private 2-4 DU

Page 1 ends

Palm Springs City CouncilJuly 24, 2023

Palm Springs City Council
July 24, 2023