Pittsburg City Council
July 20, 2026

CITY OF PITTSBURG

JULY 20, 2026

CITY HALL COUNCIL CHAMBER
65 CIVIC AVENUE, PITTSBURG, CA

REGULAR MEETING
7:00 PM

CITY COUNCIL

HOUSING AUTHORITY

PITTSBURG ARTS AND COMMUNITY FOUNDATION

PITTSBURG POWER COMPANY

SOUTHWEST PITTSBURG GEOLOGIC HAZARD ABATEMENT DISTRICT II

SUCCESSOR AGENCY

PRESIDING
Mayor/Chair • Dionne Adams
Vice-Mayor/Chair • Angelica Lopez
Council Member/Board Member • Juan Antonio Banales
Council Member/Board Member • Arlene Kobata
Council Member/Board Member • Jelani Killings

FOR HOUSING AUTHORITY
Housing Authority Member • S.L. Floyd
Housing Authority Member • Annie Hill Herring

Pittsburg City Council regular meetings are held the first and third Mondays of each month at 7:00 p.m. The Housing Authority meets in conjunction with the City Council on the third Monday of each month. The City Council also sits as the Board of Directors of several other City agencies.

Remote participation for Council meetings will be available via Zoom:
• Webinar ID: 898 0554 4017
• By phone: (669) 900-6833

7:00 PM - CONVENE IN OPEN SESSION FOR REGULAR MEETING

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

HOUSING AUTHORITY

HOUSING AUTHORITY CONSIDERATION

1. Adoption of a Housing Authority Resolution to: 1) Amend the Housing Authority Budget to Allocate and Appropriate Funds; and 2) Authorize the Executive Director to Execute a Forgivable Loan Agreement and Associated Transaction Documents with Village of Hope Pittsburg LLC to Support the Construction of Transitional Age Youth (TAY) Housing at 5305 Kirker Pass Road

Village of Hope Pittsburg, LLC, a subsidiary of Contra Costa Interfaith Transitional Housing, Inc., operating as "Hope Solutions," has received entitlements to construct a 15-unit transition-age youth (TAY) housing project on property owned by Church of the Nazarene, located at 5305 Kirker Pass Road (APN: 089-060-009). To assist with the construction of this affordable housing development, the Housing Authority of the City of Pittsburg ("Housing Authority") proposes to provide a loan in an amount not to exceed $500,000.

The loan proposes to carry a 0% interest rate over a 20-year term, and may be forgiven in two equal tranches on the 10th and 20th anniversaries of loan disbursement, contingent upon the developer maintaining compliance and continuing to operate the project as a dedicated youth housing facility. The loan would be funded by Housing Successor Agency funds, and would cover municipal development fees. Staff is also requesting Housing Authority approval of a corresponding budget amendment allocating and appropriating $500,000 in Housing Successor Agency funds, to be encumbered concurrently with execution of the loan documents.

HOUSING AUTHORITY CONSENT CALENDAR

2. Minutes of June 15, 2026

HOUSING AUTHORITY MEMBER REMARKS

ADJOURNMENT OF THE HOUSING AUTHORITY

CITY COUNCIL

PROCLAMATIONS
The standing proclamation(s) were published as part of the agenda. The proclamation(s) will be posted on the City's website and social media accounts as appropriate.

3. Th!nk Pittsburg - Payback Brazilian Jiu-Jitsu Academy

4. Port Chicago Commemoration

COMMITTEE REPORTS
Council Members may make a report on their committee assignments at this time. (see attached list of adhoc committees and other public agencies in which Council members participate). (No Action Required)

PUBLIC COMMENTS
Members of the audience who wish to address the City Council or Agency Boards on issues that are not scheduled for the agenda and on any items listed as part of the Consent Calendar should complete a Speaker's Card available at the dais.

Please read the card carefully in order to fill out the card properly. Submit the completed card to the City Clerk before the item is called, preferably before the meeting begins. Individuals will be given three minutes to address the Council unless additional time is allowed as provided for spokespersons. Prior to speaking, each member of the public shall state their name and business and City of residence in a clear and audible tone of voice. (No Action Required)

PUBLIC HEARING

5. Adoption of a City Council Resolution Confirming the Engineer’s Report and District Diagram, and Ordering a Levy for Citywide Landscaping and Lighting Assessment District 1988-1 for Fiscal Year 2026/27

Citywide Landscaping and Lighting Assessment District 1988-1 (Citywide LLAD) was established in 1988, and the funds collected are used to maintain street lighting, median and right-of-way landscaping, and park maintenance throughout the district. The assessment for commercial, institutional, industrial, churches, and nonprofit parcels has not increased since Fiscal Year (FY) 1990/91. The assessment for residential parcels has not increased since 2007/08. There’s no escalating factor in the assessment rate to adjust for inflation. Each year prior to ordering the improvements and levying the assessments, the City Council holds a public hearing.

6. Adoption of a City Council Resolution Confirming the Engineer’s Report and District Diagram, and Ordering a Levy for the Oak Hills Landscaping and Lighting Assessment District 1988-2 for Fiscal Year 2026/27

The Oak Hills Landscaping and Lighting Assessment District 1988-2 (Oak Hills LLAD) has existed since 1988, and the funds collected contribute to the City's maintenance of lighting and landscaping in the district. The assessment amount of the Oak Hills LLAD) has not increased since Fiscal Year (FY) 1990/91, and there is no escalating factor in the assessment rate to adjust for inflation. Each year, prior to ordering the improvements and levying the assessments, the City Council must hold a public hearing and adopt a resolution confirming the Engineer's Report and District Diagram, and order the levy.

CONSIDERATION

7. Adoption of a City Council Resolution Authorizing the City Manager to Execute a License Agreement with Your Community Farmers Advocate for the Operation of a Certified Farmers' Market at the City Hall Lawn

Staff recommends that the City Council approve a one-year License Agreement ("Agreement") with Your Community Farmers Advocate ("Licensee") to operate a weekly farmers' market on the City Hall Lawn at 65 Civic Avenue, beginning August 1, 2026. The Agreement authorizes use of the lawn area on the north side of City Hall each Wednesday for a Certified Farmers' Market offering fresh local produce, small-batch prepared foods, and other artisanal goods. The Agreement further sets forth operational, maintenance, insurance, and safety responsibilities of Licensee to protect City property while supporting community access to healthy food and local agriculture.

8. Adoption of a City Council Resolution Accepting Project 5704 - Central Harbor Park and Boat Launch Facilities as Complete and Authorizing the City Engineer to File a Notice of Completion

Project 5704 - Central Harbor Park and Boat Launch Facilities ("Project") improves infrastructure at the City's municipal Boat Launch Facility, Central Harbor Park, and adjacent parking lots as part of Pittsburg's effort to revitalize its waterfront. Adoption of this resolution will accept the construction contract as complete and authorize the City Engineer to file a Notice of Completion.

CONFLICT OF INTEREST STATEMENT
City Council/Agency Members may make any conflict of interest declarations pertaining to Consent Calendar items at this time.

COMBINED CITY COUNCIL, PITTSBURG ARTS AND COMMUNITY

FOUNDATION, PITTSBURG POWER COMPANY, SOUTHWEST PITTSBURG

GHAD II AND SUCCESSOR AGENCY CONSENT CALENDAR

9. Minutes of June 15, 2026

10. Adoption of a City Council Resolution Authorizing the City Manager to Negotiate and Execute a Consulting Services Agreement Between the City of Pittsburg and R. Giordano Consulting and Investigation Services

Staff is requesting the City Council authorize the City Manager to negotiate and execute an agreement with R. Giordano Consulting and Investigative Services to conduct internal investigations into allegations of officer misconduct ("Agreement").

11. Adoption of a City Council Resolution Accepting Project 2019 - BART Pedestrian & Bicycle Connectivity as Complete and Authorize the City Engineer to File a Notice of Completion

Project 2019-BART Pedestrian & Bicycle Connectivity (Project) installed pedestrian & bicycle trails and other facilities around the Pittsburg Center BART Station. This resolution will accept the construction contract as complete and authorize the City Engineer to file a Notice of Completion.

12. Adoption of a City Council Resolution Accepting Project 4079 - Linscheid Drive Traffic Calming as Complete and Authorizing the City Engineer to File a Notice of Completion

Project 4079 - Linscheid Drive Traffic Calming Phase I ("Project") includes installation of one (1) roundabout, as well as striping and signage, at the intersection of Linscheid Drive and Madoline Street. Adoption of this resolution will accept the construction contract as complete and authorize the City Engineer to file a Notice of Completion.

13. Adoption of a City Council Resolution Authorizing Submittal of Applications and Accepting Grant Award for CalRecycle Grant and Payment Programs Through Fiscal Year 2031/32

The California Department of Resources Recycling and Recovery (CalRecycle) administers grant and payment programs that provide funding to eligible local agencies for projects that promote sustainable solid waste management. CalRecycle requires an applicant's governing body to adopt a resolution authorizing the submission of applications and administration of awarded funds. Adoption of this Resolution will authorize the City to apply for all CalRecycle grant and payment programs for which it is eligible, through Fiscal Year (FY) 2031/32.

14. Adoption of City Council Resolution Authorizing the City Manager to Negotiate and Execute Contracts with Underground Republic Water Works for Water Distribution System Supplies and Badger Meter for Meters and Meter Reading Supplies

The Public Works Department maintains the City’s water distribution system, which distributes potable water to approximately 19,739 residential, commercial, industrial, and institutional customers. Bids are solicited annually for water distribution system maintenance tools and supplies, including concrete water meter boxes and lids. If approved, this resolution will authorize

the City Manager to negotiate and execute contracts with Underground Republic Water Works for water distribution system supplies, and Badger Meter for meters and meter reading supplies.

15. Adoption of a City Council Resolution Authorizing the City Manager to Execute Contracts with Chemtrade Chemical US LLC, International Dioxcide, Inc., Polydyne Inc., and Univar Solutions USA, LLC for Water Treatment Plant Chemical Supplies

The Public Works Department is responsible for the maintenance and operation of the City’s Water Treatment Plant ("WTP"). Each year bids are solicited for necessary chemical supplies. The current contracts for WTP chemicals expire on June 30, 2026. If approved, the resolution will authorize the City Manager to execute purchase contracts with Chemtrade Chemicals US LLC, International Dioxcide, Inc., Polydyne Inc., and Univar Solutions USA, LLC for a total amount of $761,000.

16. Adoption of a City Council Resolution Authorizing the City Manager to Negotiate and Execute Contracts with Antioch Building Materials (ABM) and County Asphalt, LLC for Asphalt Supplies

The Public Works Department maintains the City’s public streets and sidewalks. A variety of pavement management techniques utilizing asphalt are implemented to extend the useful life of roadways. If approved, the resolution will authorize negotiation and execution of contracts with the primary supplier and secondary supplier totaling $150,000.

17. Adoption of a City Council Resolution Authorizing Application and Acceptance of funds from the California Department of Resources Recycling and Recovery Payment Programs for Fiscal Year (FY) 2026/27 through FY 2031/32

The Department of Resources Recycling and Recovery (CalRecycle) maintains several programs to fund projects that promote materials recycling, greenhouse gas reduction, hazardous waste handling, and more (Payment Programs). All programs require a Resolution from the participating jurisdiction as part of its submittal package for Payment Programs funding.

18. Adoption of a City Council Resolution Authorizing the City Manager to Execute the Second Amendment to the Agreement with AchieveIT

The City currently utilizes the cloud-based AchieveIT platform that provides strategy management and execution for the City, as well as a public-facing dashboard. The proposed Second Amendment to the Agreement with AchieveIT will extend the term of this subscription for an additional two years at a cost not to exceed $23,000, annually. This ensures continued access to the AchieveIT system.

19. Adoption of a City Council Resolution Amending the Fiscal Year (FY) 2026/27 Budget for the Intergovernmental Support Agreement with the United States Army for Small Construction and Design Services at Military Ocean Terminal Concord (MOTCO) and Authorizing the City Manager to Amend the Budget as Additional Task Orders are Executed

The City entered into an Intergovernmental Support Agreement (IGSA) with the United States Army for small construction and design services at Military Ocean Terminal Concord (MOTCO). This resolution will amend the FY 2026/27 budget to include anticipated revenues and expenditures relating to the City’s contracted work with MOTCO and authorize the City Manager to amend the estimated revenue and expenditure budgets as additional task orders are executed.

20. Adoption of a City Council Resolution Authorizing Submission of Grant Applications and Acceptance of Grant Awards for the Pavement Management Technical Assistance Program (PTAP), Including PTAP-27, and Authorizing Expenditure of Project 2043 - Zone 7 Pavement Management Phase I Funds for the Required Local Match

The Metropolitan Transportation Commission (MTC) administers the Pavement Management Technical Assistance Program (PTAP), which provides federal funding to help Bay Area agencies maintain pavement management programs. The City has been awarded PTAP-27 funding to support Project 2043 – Zone 7 Pavement Management Phase I ("Project") by updating the City's pavement condition data and StreetSaver database. Adoption of this Resolution authorizes staff to submit PTAP grant applications, accept PTAP grant awards, including PTAP-27, and authorizes the use of Project funds for the required local match.

21. Adoption of a City Council Resolution Approving the Installation of Speed Humps on Meadows Avenue

The City’s Traffic Calming Policy includes specific criteria to be used when considering the implementation of speed humps to calm traffic on local streets. The proposed speed humps on Meadows Avenue between Rangewood Drive and Ventura Drive has met this criteria.

22. Adoption of a City Council Resolution Authorizing the City Manager to Execute a First Amendment to the Consulting Services Agreement with Entertainment Lane, Inc. for the Operation and Management of the California Theatre

Staff recommends that the City Council approve the First Amendment to the Consulting Services Agreement with Entertainment Lane, Inc. ("Agreement") for the continued operation and management of the City-owned California Theatre. The amendment extends the agreement one year through June 30, 2027, modifies the compensation schedule, and increases the total not-to- exceed contract amount to $1,400,000.

Entertainment Lane, Inc. has provided management and operational services for the California Theatre under the Agreement since July 1, 2023. The proposed amendment will ensure continuity of theatre operations while the City continues to evaluate long-term operational needs and programming opportunities.

23. Adoption of a City Council Resolution Amending the Master Pay Schedule to Include Amendments to the Salary Schedule and Authorized Positions Listing

To comply with CalPERS’s interpretation of the requirements of California Code of Regulations, Title 2, Section 570.5, the City must periodically amend the single Master Pay Schedule (MPS) on the City’s website, reflecting all previously approved actions related to salaries and approved positions.

24. Adoption of a City Council Resolution and a Geologic Hazard Abatement District (GHAD) II Resolution Approving a List of On-Call Engineering Services Firms, Authorizing the Execution of Agreements, Authorizing the Execution of up to Two One-Year Extensions, and Authorizing the Execution of Task Orders

The On-Call Engineering List of pre-qualified firms allows City staff to engage consultants or contractors to support capital improvement projects, land development review, and operational needs. This action would approve a list of qualified firms for on-call engineering services, authorize the City Manager/Executive Director to enter into service and/or consulting agreements with selected firms, extend the term of agreements by up to two years via separate one-year extensions, and authorize the Public Works Director/City Engineer to execute Task Orders.

25. Adoption of a Pittsburg Power Company Resolution Authorizing the Executive Director to Execute a Second Amendment to the Operations Agreement with the City of Vallejo to Provide Natural Gas Service to Mare Island and a Second Amendment to the Operations Agreement with the City of Vallejo to Provide Electric Service to Mare Island

Pittsburg Power Company (PPC) Resolution No. 25-479 authorized the execution of the first amendments to operations agreements between the City of Vallejo (Vallejo) and Island Energy (IE) regarding distribution of natural gas and electricity to Mare Island (the "Gas OA" and "Electric OA," hereafter referred together as the "Agreements") extending the Agreements for one (1) year with a six (6) month mutual extension, effectively extending the term through August 31, 2026. Both IE and Vallejo agree additional time is necessary to negotiate the terms and conditions of a long-term agreement(s), as well as the necessity of such agreements in general, and propose second amendments to both Agreements extending the term for an additional twelve (12) months through August 31, 2027, with a six-month mutual, optional extension, to extend the Agreements through February 29, 2028.

COUNCIL REQUEST FOR FUTURE AGENDA ITEMS
Council Members may request items to be considered for future agendas. An item will only be brought forward with a majority vote and will appear on a future agenda with staff recommendations for further Council consideration.

COUNCIL MEMBER REMARKS
Council Members may make brief announcements or informal comments at this time. (No Action Required)

CITY MANAGER REPORTS/REMARKS
The City Manager may make brief announcements or informal comments at this time and brief the Council on items of interest. (No Action Required)

ADJOURNMENT TO AUGUST 3, 2026

City Council Agency/Liaison/Subcommittee Assignments as of March 26, 2026

OUTSIDE AGENCY BOARDS COUNCIL MEMBER(S) TYPE MEETS TIME STAFF ABAG Dionne Adams / Jelani Killings (Alt.) Standing Annual D. Gale/M. Aliotti Delta Diablo* Jelani Killings / Arlene Kobata (Alt.) Standing 2nd Wednesday 4:30 PM J. Samuelson East Co. Co. County Habitat Conservancy Arlene Kobata / Juan Banales (Alt.) Standing 4th Monday (Bi-Monthly) 1:30 PM J. Davis East County Water Management Juan Banales / Jelani Killings (Alt.) Standing Bi-Annual 1:00 PM J. Samuelson MCE Clean Energy Board Arlene Kobata / Angelica Lopez (Alt.) Standing 3rd Thursday 6:30 PM J. Davis TRANSPLAN / ECCRFFA Juan Banales / Dionne Adams (Alt.) Standing 2nd Thursday 6:30 PM J. Samuelson Tri-Delta Transit (2 reps)** Angelica Lopez & Dionne Adams / Arlene Kobata (Alt.) Standing 4th Wednesday 4:00 PM J. Samuelson

LIAISON COUNCIL MEMBER(S) TYPE MEETS TIME STAFF
East Bay League of California Cities Dionne Adams / Angelica Lopez (Alt.) Standing 3rd Thursday D. Gale/M. Aliotti Green Empowerment Zone Arlene Kobata / Jelani Killings (Alt.) Standing 3rd Friday (Bi-Monthly) 9:30 AM J. Davis Los Medanos Health Advisory Committee Arlene Kobata & Dionne Adams Ad Hoc As needed D. Gale/M. Aliotti Mayor’s Conference Dionne Adams / Angelica Lopez (Alt.) Standing 1st Thursday 6:30 PM D. Gale/M. Aliotti School Districts Committee (2x2) Jelani Killings & Angelica Lopez / Juan Banales (Alt.) Standing Quarterly D. Gale/M.Aliotti

SUBCOMMITTEES COUNCIL MEMBER(S) TYPE MEETS TIME STAFF
Community and Economic Development Jelani Killings & Dionne Adams / Angelica Lopez (Alt.) Standing 2nd Thursday 5:30 PM J. Davis Data Center and Hydrogen Jelani Killings & Juan Banales Ad Hoc As needed J. Davis Development Agreement Dionne Adams & Jelani Killings Ad Hoc As needed J. Davis Finance Management Dionne Adams & Juan Banales / Jelani Killings (Alt.) Standing 2nd Wednesday 5:30 PM E. Adair Infrastructure and Transportation Juan Banales & Arlene Kobata / Dionne Adams (Alt.) Standing 4th Thursday 5:30 PM J. Samuelson Tenant Protections Juan Banales & Angelica Lopez Ad Hoc As needed S. Bellafronte Life Enrichment Dionne Adams & Arlene Kobata / Jelani Killings (Alt.) Standing 3rd Wednesday 5:30 PM K. Simonton Pittsburg Arts and Community Foundation Angelica Lopez & Jelani Killings Standing As needed K. Simonton Public Safety Juan Banales & Angelica Lopez / Arlene Kobata (Alt.) Standing 1st Wednesday 5:30 PM P. Galer *Stipend of $170 per month
** Stipend of 100 per month

CIUDAD DE PITTSBURG

20 DE JULIO DE 2026

SALA DE SESIONES DEL AYUNTAMIENTO
65 CIVIC AVENUE, PITTSBURG, CA

REUNIÓN ORDINARIA
7:00 PM

CONSEJO MUNICIPAL

AUTORIDAD DE VIVIENDA
FUNDACIÓN DE ARTES Y COMUNIDAD DE PITTSBURG
COMPAÑÍA ELÉCTRICA DE PITTSBURG
DISTRITO II DE REDUCCIÓN DE PELIGROS GEOLÓGICOS DEL SUDOESTE DE

PITTSBURG

AGENCIA SUCESORA

PRESIDENTE
Alcalde/Presidente • Dionne Adams
Vicealcalde/Presidente • Angélica López
Miembro del Consejo/Miembro de la Junta Directiva • Juan Antonio Banales Miembro del Consejo/Miembro de la Junta Directiva • Arlene Kobata Miembro del Consejo/Miembro de la Junta Directiva • Asesinatos de Jelani

PARA LA AUTORIDAD DE VIVIENDA
Miembro de la Autoridad de Vivienda • SL Floyd
Miembro de la Autoridad de Vivienda • Annie Hill Herring

Las reuniones ordinarias del Consejo Municipal de Pittsburg se llevan acabo el primer y el tercer lunes de cada mes a las 7:00PM. La Autoridad de Vivienda se reúne conjuntamente con el Consejo Municipal el tercer lunes de cada mes. El Consejo Municipal también actúa como junta directiva de varias otras agencias municipales.

La participación remota en las reuniones del Consejo estará disponible a través de Zoom:
• ID del seminario web: 898 0554 4017
• Por teléfono : (669) 900-6833

7:00PM - INICIO DE LA SESIÓN PÚBLICA ORDINARIA

LLAMAR AL ORDEN

LISTA DE ASISTENCIA

JURAMENTO DE LEALTAD

AUTORIDAD DE VIVIENDA

CONSIDERACIÓN DE LA AUTORIDAD DE VIVIENDA

1. Adopción de una resolución de la Autoridad de Vivienda para: 1) Modificar el presupuesto de la Autoridad de Vivienda para asignar y distribuir fondos; y 2) Autorizar al Director Ejecutivo a firmar un acuerdo de préstamo condonable y los documentos de transacción asociados con Village of Hope Pittsburg LLC para apoyar la construcción de viviendas para jóvenes en transición (TAY) en 5305 Kirker Pass Road.

Village of Hope Pittsburg, LLC, una subsidiaria de Contra Costa Interfaith Transitional Housing, Inc., que opera como "Hope Solutions", ha recibido los permisos para construir un proyecto de vivienda de 15 unidades para jóvenes en transición (TAY, por sus siglas en inglés) en un terreno propiedad de la Iglesia del Nazareno, ubicado en 5305 Kirker Pass Road (APN: 089-060-009).

Para apoyar la construcción de este desarrollo de vivienda asequible, la Autoridad de Vivienda de la Ciudad de Pittsburg ("Autoridad de Vivienda") propone otorgar un préstamo por un monto que no exceda los $500,000. El préstamo tiene una tasa de interés del 0% a 20 años y puede ser condonado en dos partes iguales en los aniversarios 10 y 20 del desembolso, siempre y cuando el desarrollador cumpla con los requisitos y continúe operando el proyecto como una instalación dedicada a la vivienda juvenil. El préstamo se financiaría con fondos de la Agencia Sucesora de Vivienda y cubriría los costos de desarrollo municipal. El personal también solicita la aprobación de la Autoridad de Vivienda para una enmienda presupuestaria correspondiente que asigne y destine 500.000 dólares de los fondos de la Agencia Sucesora de Vivienda, que se comprometerán simultáneamente con la firma de los documentos del préstamo.

CALENDARIO DE CONSENTIMIENTO DE LA AUTORIDAD DE VIVIENDA

2. Acta del 15 de junio de 2026

COMENTARIOS DE MIEMBROS DE LA AUTORIDAD DE VIVIENDA

APLAZAMIENTO DE LA AUTORIDAD DE VIVIENDA

CONSEJO MUNICIPAL

PROCLAMACIONES
Las proclamaciones permanentes se publicaron como parte del orden del día.

Dichas proclamaciones se publicarán en el sitio web y las redes sociales de la ciudad según corresponda.

3. Th!nk Pittsburg - Academia de Jiu-Jitsu Brasileño Payback

4. Conmemoración del puerto de Chicago

INFORMES DEL COMITÉ
Los concejales pueden presentar un informe sobre sus asignaciones en los comités en este momento. (Véase la lista adjunta de comités especiales y otros organismos públicos en los que participan los concejales). (No se requiere ninguna acción).

COMENTARIOS DEL PÚBLICO
Los asistentes que deseen dirigirse al Consejo Municipal o a las Juntas Directivas de Agencias sobre asuntos no incluidos en el orden del día y sobre cualquier punto del Calendario de Consentimiento deberán completar una Tarjeta de orador disponible en la tribuna. Lea atentamente la tarjeta para completarla correctamente. Entregue la tarjeta completa a la Secretaria Municipal antes de que se trate el asunto de su interés, preferiblemente antes de que comience la reunión. Cada persona tendrá hasta tres minutos para dirigirse al Consejo, al menos que se conceda tiempo adicional para los portavoces. Antes de hablar, cada persona deberá indicar su nombre, empresa y ciudad de residencia en voz alta y clara. (No se requiere ninguna acción)

AUDIENCIA PÚBLICA

5. Adopción de una resolución del Consejo Municipal que confirma el informe del ingeniero y el diagrama del distrito, y ordena un impuesto para el distrito de evaluación de paisajismo e iluminación de toda la ciudad 1988-1 para el año fiscal 2026/27.

El Distrito de Evaluación de Paisajismo e Iluminación de la Ciudad 1988-1 (LLAD de la Ciudad) se estableció en 1988, y los fondos recaudados se utilizan para el mantenimiento del alumbrado público, el paisajismo de las medianas y las franjas de derecho de vía, y el mantenimiento de los parques en todo el distrito. La evaluación para parcelas comerciales, institucionales, industriales, iglesias y organizaciones sin fines de lucro no ha aumentado desde el año fiscal (AF) 1990/91. La evaluación para parcelas residenciales no ha aumentado desde 2007/08. No existe un factor de ajuste por inflación en la tasa de evaluación. Cada año, antes de ordenar las mejoras y recaudar las evaluaciones, el Concejo Municipal debe tener una audiencia pública.

6. Adopción de una resolución del Consejo Municipal que confirma el informe del ingeniero y el diagrama del distrito, y ordena un impuesto para el Distrito de Evaluación de Paisajismo e Iluminación de Oak Hills 1988-2 para el año fiscal 2026/27.

El Distrito de Evaluación de Paisajismo e Iluminación de Oak Hills 1988-2 (Oak Hills LLAD) existe desde 1988, y los fondos recaudados contribuyen al mantenimiento del alumbrado y el paisajismo de la ciudad en el distrito. El monto de la evaluación del Oak Hills LLAD no ha aumentado desde el año fiscal (AF) 1990/91, y no existe un factor de ajuste por inflación en la tasa de evaluación. Cada año, antes de ordenar las mejoras y recaudar las evaluaciones, el Concejo Municipal debe tener una audiencia pública y adoptar una resolución que confirme el Informe del Ingeniero y el Diagrama del Distrito, y ordenar la recaudación.

CONSIDERACIÓN

7. Adopción de una resolución del Concejo Municipal que autoriza al administrador municipal a formalizar un acuerdo de licencia con Your Community Farmers Advocate para la operación de un mercado de agricultores certificado en el césped del Ayuntamiento.

El personal recomienda que el Concejo Municipal apruebe un Contrato de Licencia de un año ("Contrato") con Your Community Farmers Advocate ("Licenciatario") para operar un mercado agrícola semanal en el césped del Ayuntamiento, ubicado en 65 Civic Avenue, a partir del 1 de agosto de 2026.

El Contrato autoriza el uso del área verde al norte del Ayuntamiento todos los miércoles para un Mercado Agrícola Certificado que ofrecerá productos locales frescos, alimentos preparados en pequeñas cantidades y otros productos artesanales. El Contrato también establece las responsabilidades operativas, de mantenimiento, de seguro y de seguridad del Licenciatario para proteger la propiedad municipal y, al mismo tiempo, fomentar el acceso de la comunidad a alimentos saludables y a la agricultura local.

8. Adopción de una resolución del Concejo Municipal que acepta el Proyecto 5704 - Parque Central del Puerto e Instalaciones para el Lanzamiento de Embarcaciones como terminado y autoriza al Ingeniero Municipal a presentar un Aviso de Finalización.

El Proyecto 5704 - Parque Central del Puerto e Instalaciones para Embarcaciones ("Proyecto") mejora la infraestructura de la instalación municipal de botadura de embarcaciones, el Parque Central del Puerto y los estacionamientos adyacentes, como parte del esfuerzo de Pittsburg por revitalizar su zona costera. La aprobación de esta resolución dará por concluido el contrato de construcción y autorizará al Ingeniero Municipal a presentar un Aviso de Finalización.

DECLARACIÓN DE CONFLICTO DE INTERESES
Los miembros del Concejo Municipal o de las agencias gubernamentales pueden realizar cualquier declaración de conflicto de intereses relacionada con los puntos del orden del día que se someten a trámite por consentimiento en este momento.

CALENDARIO DE CONSENTIMIENTO COMBINADO DEL CONCEJO
MUNICIPAL, LA FUNDACIÓN DE ARTES Y COMUNIDAD DE PITTSBURG, LA COMPAÑÍA ELÉCTRICA DE PITTSBURG, DISTRITO II DE REDUCCIÓN DE PELIGROS GEOLÓGICOS DEL SUDOESTE DE PITTSBURG Y LA AGENCIA

SUCESORA

9. Acta del 15 de junio de 2026

10. Adopción de una resolución del Concejo Municipal que autoriza al administrador municipal a negociar y formalizar un acuerdo de servicios de consultoría entre la ciudad de Pittsburg y R. Giordano Consulting and Investigation Services.

El personal solicita al Concejo Municipal que autorice al Administrador Municipal a negociar y formalizar un acuerdo con R. Giordano Consulting and Investigative Services para llevar a cabo investigaciones internas sobre denuncias de mala conducta de los agentes ("Acuerdo").

11. Adopción de una resolución del Concejo Municipal que acepta el Proyecto 2019 - Conectividad para peatones y ciclistas de BART como finalizado y autoriza al ingeniero municipal a presentar un aviso de finalización.

El Proyecto 2019 de Conectividad Peatonal y Ciclista de BART instaló senderos para peatones y bicicletas, así como otras instalaciones, alrededor de la estación Pittsburg Center de BART. Esta resolución acepta el contrato de construcción como finalizado y autoriza al Ingeniero Municipal a presentar un Aviso de Finalización.

12. Adopción de una resolución del Concejo Municipal que acepta como finalizado el proyecto 4079 - Medidas para la reducción de la velocidad del tráfico en Linscheid Drive y autoriza al ingeniero municipal a presentar un aviso de finalización.

El Proyecto 4079 - Fase I de Medidas para la Reducción del Tráfico en Linscheid Drive ("Proyecto") incluye la instalación de una (1) rotonda, así como señalización horizontal y vertical, en la intersección de Linscheid Drive y Madoline Street. La aprobación de esta resolución dará por concluido el contrato de construcción y autorizará al Ingeniero Municipal a presentar un Aviso de Finalización.

13. Adopción de una resolución del Concejo Municipal que autoriza la presentación de solicitudes y la aceptación de la subvención concedida para los programas de subvenciones y pagos de CalRecycle hasta el año fiscal 2031/32.

El Departamento de Reciclaje y Recuperación de Recursos de California (CalRecycle) administra programas de subvenciones y pagos que proporcionan financiación a agencias locales elegibles para proyectos que promueven la gestión sostenible de residuos sólidos. CalRecycle exige que el órgano de gobierno del solicitante apruebe una resolución que autorice la presentación de solicitudes y la administración de los fondos otorgados. La aprobación de esta resolución autorizará a la Ciudad a solicitar todos los programas de subvenciones y pagos de CalRecycle para los que sea elegible, hasta el año fiscal 2031/32.

14. Aprobación de la Resolución del Concejo Municipal que autoriza al Administrador Municipal a negociar y firmar contratos con Underground Republic Water Works para el suministro de equipos para el sistema de distribución de agua y con Badger Meter para el suministro de contadores y equipos de lectura de contadores.

El Departamento de Obras Públicas se encarga del mantenimiento del sistema de distribución de agua de la ciudad, que abastece de agua potable a aproximadamente 19 739 clientes residenciales, comerciales, industriales e institucionales. Anualmente se solicitan ofertas para herramientas y suministros de mantenimiento del sistema de distribución de agua, incluyendo cajas y tapas de concreto para medidores de agua. De aprobarse, esta resolución autorizará al Administrador Municipal a negociar y firmar contratos con Underground Republic Water Works para el suministro de materiales para el sistema de distribución de agua, y con Badger Meter para medidores y suministros para la lectura de medidores.

15. Adopción de una resolución del Concejo Municipal que autoriza al administrador municipal a firmar contratos con Chemtrade Chemical US LLC, International Dioxcide, Inc., Polydyne Inc. y Univar Solutions USA, LLC para el suministro de productos químicos para plantas de tratamiento de agua.

El Departamento de Obras Públicas es responsable del mantenimiento y la operación de la Planta de Tratamiento de Agua (PTA) de la ciudad.

Anualmente se solicitan ofertas para el suministro de los productos químicos necesarios. Los contratos vigentes para los productos químicos de la PTA vencen el 30 de junio de 2026. De aprobarse, la resolución autorizará al administrador municipal a firmar contratos de compra con Chemtrade Chemicals US LLC, International Dioxcide , Inc., Polydyne Inc. y Univar Solutions USA, LLC por un monto total de $761,000.

16. Adopción de una resolución del Concejo Municipal que autoriza al administrador municipal a negociar y firmar contratos con Antioch Building Materials (ABM) y County Asphalt, LLC para el suministro de asfalto.

El Departamento de Obras Públicas se encarga del mantenimiento de las calles y aceras públicas de la ciudad. Se implementan diversas técnicas de gestión de pavimentos con asfalto para prolongar la vida útil de las vías. De aprobarse, la resolución autorizará la negociación y firma de contratos con el proveedor principal y el proveedor secundario por un total de $150,000.

17. Adopción de una resolución del Concejo Municipal que autoriza la solicitud y aceptación de fondos de los programas de pago de reciclaje y recuperación del Departamento de Recursos de California para los años fiscales (AF) 2026/27 a 2031/32.

El Departamento de Reciclaje y Recuperación de Recursos (CalRecycle) administra varios programas para financiar proyectos que promueven el reciclaje de materiales, la reducción de gases de efecto invernadero, el manejo de residuos peligrosos y otros (Programas de Pago). Todos los programas requieren una resolución de la jurisdicción participante como parte de su solicitud de financiación.

18. Adopción de una resolución del Concejo Municipal que autoriza al administrador municipal a ejecutar la segunda enmienda al acuerdo con AchieveIT.

la ciudad utiliza la plataforma AchieveIT, basada en la nube, que proporciona gestión y ejecución estratégica, además de un panel de control público. La segunda enmienda propuesta al acuerdo con AchieveIT extenderá la vigencia de esta suscripción por dos años adicionales, con un costo que no superará los $23,000 anuales. Esto garantiza el acceso continuo al sistema AchieveIT.

19. Adopción de una resolución del Concejo Municipal que modifica el presupuesto del año fiscal (AF) 2026/27 para el Acuerdo de Apoyo Intergubernamental con el Ejército de los Estados Unidos para servicios de diseño y construcción a pequeña escala en la Terminal Oceánica Militar de Concord (MOTCO) y autoriza al administrador municipal a modificar el presupuesto a medida que se ejecuten órdenes de trabajo adicionales.

La ciudad suscribió un Acuerdo de Apoyo Intergubernamental (IGSA) con el Ejército de los Estados Unidos para servicios de construcción y diseño a pequeña escala en la Terminal Oceánica Militar de Concord (MOTCO). Esta resolución modificará el presupuesto del año fiscal 2026/27 para incluir los ingresos y gastos previstos relacionados con el trabajo contratado por la ciudad con MOTCO y autorizará al administrador municipal a modificar los presupuestos estimados de ingresos y gastos a medida que se ejecuten órdenes de trabajo adicionales.

20. Adopción de una resolución del Concejo Municipal que autoriza la presentación de solicitudes de subvención y la aceptación de las subvenciones otorgadas para el Programa de Asistencia Técnica para la Gestión de Pavimentos (PTAP), incluido el PTAP-27, y que autoriza el gasto de los fondos de la Fase I de la Gestión de Pavimentos de la Zona 7 del Proyecto 2043 para la contrapartida local requerida.

La Comisión Metropolitana de Transporte (MTC) administra el Programa de Asistencia Técnica para la Gestión de Pavimentos (PTAP), que proporciona fondos federales para ayudar a las agencias del Área de la Bahía a mantener sus programas de gestión de pavimentos. La ciudad ha recibido fondos del PTAP-27 para apoyar el Proyecto 2043 – Fase I de Gestión de Pavimentos

de la Zona 7 (“Proyecto”) mediante la actualización de los datos sobre el estado de los pavimentos de la ciudad y la base de datos StreetSaver . La aprobación de esta Resolución autoriza al personal a presentar solicitudes de subvención del PTAP, aceptar las subvenciones otorgadas por el PTAP, incluido el PTAP-27, y autoriza el uso de los fondos del Proyecto para la contrapartida local requerida.

21. Adopción de una resolución del Concejo Municipal que aprueba la instalación de reductores de velocidad en Meadows Avenue.

La política municipal de control del tráfico incluye criterios específicos que deben tenerse en cuenta al considerar la instalación de reductores de velocidad para calmar el tráfico en las calles locales. Los reductores de velocidad propuestos en Meadows Avenue, entre Rangewood Drive y Ventura Drive, cumplen con estos criterios.

22. Adopción de una resolución del Concejo Municipal que autoriza al administrador municipal a firmar una primera enmienda al contrato de servicios de consultoría con Entertainment Lane, Inc. para la operación y gestión del California Theatre.

El personal recomienda que el Concejo Municipal apruebe la Primera Enmienda al Contrato de Servicios de Consultoría con Entertainment Lane, Inc. (“Contrato”) para la operación y gestión continuas del Teatro California, propiedad de la ciudad . La enmienda extiende el contrato un año, hasta el 30 de junio de 2027, modifica el esquema de compensación y aumenta el monto total del contrato, que no puede exceder los $1,400,000.

Entertainment Lane, Inc. ha prestado servicios de gestión y operación al California Theatre en virtud del Acuerdo desde el 1 de julio de 2023. La enmienda propuesta garantizará la continuidad de las operaciones del teatro mientras la Ciudad continúa evaluando las necesidades operativas a largo plazo y las oportunidades de programación.

23. Adopción de una resolución del Concejo Municipal que modifica la tabla salarial principal para incluir modificaciones a la tabla salarial y a la lista de puestos autorizados.

Para cumplir con la interpretación que CalPERS hace de los requisitos del Título 2, Sección 570.5 del Código de Reglamentos de California, la Ciudad debe modificar periódicamente el único Programa Maestro de Pagos (MPS, por sus siglas en inglés) en el sitio web de la Ciudad, reflejando todas las acciones previamente aprobadas relacionadas con los salarios y los puestos aprobados.

24. Adopción de una resolución del Concejo Municipal y una resolución del Distrito de Mitigación de Riesgos Geológicos (GHAD) II que aprueban una lista de empresas de servicios de ingeniería de guardia, autorizan la firma de acuerdos, autorizan la ejecución de hasta dos prórrogas de un año y autorizan la ejecución de órdenes de trabajo.

La lista de empresas precalificadas de ingeniería de guardia permite al personal municipal contratar consultores o contratistas para apoyar proyectos de mejora de capital, revisión de desarrollo urbanístico y necesidades operativas. Esta medida aprobaría una lista de empresas calificadas para servicios de ingeniería de guardia, autorizaría al administrador municipal/director ejecutivo a celebrar contratos de servicios y/o consultoría con las empresas seleccionadas, extendería la vigencia de los contratos hasta por dos años mediante prórrogas anuales independientes y autorizaría al director de obras públicas/ingeniero municipal a ejecutar órdenes de trabajo.

25. Adopción de una resolución de Pittsburg Power Company que autoriza al director ejecutivo a firmar una segunda enmienda al acuerdo de operaciones con la ciudad de Vallejo para proporcionar servicio de gas natural a Mare Island y una segunda enmienda al acuerdo de operaciones con la ciudad de Vallejo para proporcionar servicio eléctrico a Mare Island.

La Resolución No. 25-479 de Pittsburg Power Company (PPC) autorizó la ejecución de las primeras enmiendas a los acuerdos de operación entre la Ciudad de Vallejo (Vallejo) e Island Energy (IE) con respecto a la distribución de gas natural y electricidad a Mare Island (el "Gas OA" y el "Electric OA", en adelante denominados conjuntamente como los "Acuerdos") extendiendo los Acuerdos por un (1) año con una extensión mutua de seis (6) meses, extendiendo efectivamente el plazo hasta el 31 de agosto de 2026. Tanto IE como Vallejo coinciden en que es necesario tiempo adicional para negociar los términos y condiciones de un acuerdo a largo plazo, así como la necesidad de dichos acuerdos en general, y proponen segundas enmiendas a ambos Acuerdos extendiendo el plazo por doce (12) meses adicionales hasta el 31 de agosto de 2027, con una extensión mutua opcional de seis meses, para extender los Acuerdos hasta el 29 de febrero de 2028.

SOLICITUD DEL CONCEJO PARA INCLUIR TEMAS EN FUTURAS AGENDAS Los miembros del Consejo pueden solicitar que se consideren ciertos temas para futuras agendas. Un tema solo se incluirá en la agenda con el voto mayoritario y aparecerá junto con las recomendaciones del personal para su posterior consideración por parte del Consejo.

COMENTARIOS DE LOS MIEMBROS DEL CONCEJO
Los miembros del Consejo pueden hacer breves anuncios o comentarios informales en este momento. (No se requiere ninguna acción).

INFORMES/OBSERVACIONES DEL ADMINISTRADOR MUNICIPAL
El administrador municipal podrá realizar breves anuncios o comentarios informales en este momento e informar al Consejo sobre asuntos de interés. (No se requiere ninguna acción).

APLAZAMIENTO HASTA EL 3 DE AGOSTO DE 2026

ASIGNACIONES DEL CONCEJO MUNICIPAL A AGENCIAS, ENLACES Y SUBCOMITÉS (26 de Marzo 2026)

JUNTA DIRECTIVA DE AGENCIAS EXTERNAS MIEMBRO(S) DEL CONSEJO TIPO FRECUENCIA HORARIO PERSONAL ABAG Dionne Adams / Jelani Killings (Alt.) recurrente Anual D. Gale/M. Aliotti Delta Diablo* Jelani Killings / Arlene Kobata (Alt.) recurrente 2ndo miércoles 4:30 PM J. Samuelson East Co. Co. County Habitat Conservancy Arlene Kobata / Juan Banales (Alt.) recurrente 4to lunes (Bi-Mensual) 1:30 PM J. Davis East County Water Management Juan Banales / Jelani Killings (Alt.) recurrente Bi-Anual 1:00 PM J. Samuelson MCE Clean Energy Board Arlene Kobata / Angelica Lopez (Alt.) recurrente 3er jueves 6:30 PM J. Davis TRANSPLAN / ECCRFFA Juan Banales / Dionne Adams (Alt.) recurrente 2ndo jueves 6:30 PM J. Samuelson Tri-Delta Transit (2 reps)** Angelica Lopez & Dionne Adams / Arlene Kobata (Alt.) recurrente 4to miércoles 4:00 PM J. Samuelson

ENLACE MIEMBRO(S) DEL CONSEJO TIPO FRECUENCIA HORARIO PERSONAL East Bay League of California Cities Dionne Adams / Angelica Lopez (Alt.) recurrente 3er jueves D. Gale/M. Aliotti Green Empowerment Zone Arlene Kobata / Jelani Killings (Alt.) recurrente 3er viernes (Bi-Mensual) 9:30 AM J. Davis Los Medanos Health Advisory Committee Arlene Kobata & Dionne Adams Ad Hoc Según Sea Necesario 5:00 PM D. Gale/M. Aliotti Mayor’s Conference Dionne Adams / Angelica Lopez (Alt.) recurrente 1er jueves 6:30 PM D. Gale/M. Aliotti School Districts Committee (2x2) Jelani Killings & Angelica Lopez / Juan Banales (Alt.) recurrente Trimestral D. Gale/M.Aliotti SUBCOMITÉS MIEMBRO(S) DEL CONSEJO TIPO FRECUENCIA HORARIO PERSONAL Community and Economic Development Jelani Killings & Dionne Adams / Angelica Lopez (Alt.) recurrente 2do jueves 5:30 PM J. Davis Data Center and Hydrogen Jelani Killings & Juan Banales Ad Hoc Según Sea Necesario J. Davis Development Agreement Dionne Adams & Jelani Killings Ad Hoc Según Sea Necesario J. Davis Finance Management Dionne Adams & Juan Banales / Jelani Killings (Alt.) recurrente 2ndo miércoles 5:30 PM E. Adair Infrastructure and Transportation Juan Banales & Arlene Kobata / Dionne Adams (Alt.) recurrente 4to jueves 5:30 PM J. Samuelson Tenant Protections Juan Banales & Angelica Lopez Ad Hoc Según Sea Necesario S. Bellafronte Life Enrichment Dionne Adams & Arlene Kobata / Jelani Killings (Alt.) recurrente 3er miércoles 5:30 PM K. Simonton Pittsburg Arts and Community Foundation Angelica Lopez & Jelani Killings recurrente Según Sea Necesario K. Simonton Public Safety Juan Banales & Angelica Lopez / Arlene Kobata (Alt.) recurrente 1er miércoles 5:30 PM P. Galer *Suelda de $170 por mes
** Sueldo de $100 por mes

STAFF REPORT

MEETING DATE: July 20, 2026

TO: Chair and Governing Board Members

FROM: Darin E. Gale‚ Executive Director
John Funderburg, Assistant Director, Community and
Economic Development
Ishani Rasanayagam, Administrative Analyst II

SUBJECT: Adoption of a Housing Authority Resolution to: 1) Amend the Housing Authority Budget to Allocate and Appropriate Funds; and 2) Authorize the Executive Director to Execute a
Forgivable Loan Agreement and Associated Transaction
Documents with Village of Hope Pittsburg LLC to Support the Construction of Transitional Age Youth (TAY) Housing at 5305 Kirker Pass Road

EXECUTIVE SUMMARY

Village of Hope Pittsburg, LLC, a subsidiary of Contra Costa Interfaith Transitional Housing, Inc., operating as "Hope Solutions," has received entitlements to construct a 15-unit transition-age youth (TAY) housing project on property owned by Church of the Nazarene, located at 5305 Kirker Pass Road (APN: 089-060-009). To assist with the construction of this affordable housing development, the Housing Authority of the City of Pittsburg ("Housing Authority") proposes to provide a loan in an amount not to exceed $500,000. The loan proposes to carry a 0% interest rate over a 20-year term, and may be forgiven in two equal tranches on the 10th and 20th anniversaries of loan disbursement, contingent upon the developer maintaining compliance and continuing to operate the project as a dedicated youth housing facility. The loan would be funded by Housing Successor Agency funds, and would cover municipal development fees. Staff is also requesting Housing Authority approval of a corresponding budget amendment allocating and appropriating $500,000 in Housing Successor Agency funds, to be encumbered concurrently with execution of the loan documents.

FISCAL IMPACT

The $500,000 forgivable loan will be provided by Housing Successor Agency fund

balance, overseen by the Housing Authority. To facilitate the loan, a corresponding budget amendment allocating and appropriating $500,000 of Housing Successor Agency funds is also requested, to be encumbered concurrently with execution of the loan documents. Sufficient fund balance exists within the Housing Successor Agency to accommodate this appropriation without impact to other planned Housing Successor Agency activities.

RECOMMENDATION

Adopt a Resolution amending the Housing Authority budget to allocate and appropriate funding for the forgivable loan and authorizing the Executive Director to execute a loan agreement and associated transaction documents with Village of Hope Pittsburg LLC to support the construction of transitional-age youth (TAY) housing at 5305 Kirker Pass Road.

BACKGROUND

The City of Pittsburg actively seeks out community development opportunities to revitalize neighborhoods and develop viable urban communities by expanding decent, safe, and affordable housing opportunities for low- and moderate-income households.

These initiatives are designed to foster stable living environments and ensure that municipal resources are strategically deployed to support project feasibility for underserved populations.

Transition-age youth are defined as legally emancipated youth between the ages of 16 and 18 or young adults between 18 and 24 who are aging out of foster care, in state custody, or facing immediate homelessness, and represent a particularly vulnerable segment of the local unhoused population. Without targeted interventions, this demographic faces severe barriers to independent living, highlighting a critical regional need for dedicated supportive housing infrastructure that combines stable shelter with professional development.

To address this gap, the developer, Village of Hope Pittsburg, LLC entered into a long- term ground lease with the Pittsburg Church of the Nazarene to utilize approximately

0.8 acres of vacant land situated along the western side of the parcel at 5305 Kirker Pass Road. While the property contribution secures the site footprint, upfront municipal infrastructure and regulatory costs present significant barriers to breaking ground. To overcome these initial capital hurdles associated with local development fees and to enable the successful build-out of a targeted, service-enriched micro-housing community, Hope Solutions requested financial assistance from the Housing Authority.

SUBCOMMITTEE FINDINGS

This item was presented to the Life Enrichment Subcommittee on May 15, 2024.

STAFF ANALYSIS

This project represents a collaborative effort to address youth homelessness by establishing a 15-unit home community dedicated to Transition Age Youth (TAY) ages 18 to 24. Developed by Village of Hope Pittsburg, LLC and managed by Hope Solutions, the project constructs affordable housing paired with mandatory onsite wraparound supportive services, such as case management and mental health support, to help unhoused or at-risk young adults transition into independent living. The project has received all necessary land use entitlements and is currently applying for construction permits.

As the developer does not own the land, to secure the loan a Tri-Party Agreement has been negotiated between the Housing Authority, Village of Hope Pittsburg LLC, and the Pittsburg Church of the Nazarene. This agreement will ensure that the City’s $500,000 Leasehold Deed of Trust, the Regulatory Agreement, and all municipal property encumbrances remain securely tied to the land regardless of any future lease disruptions.

The $500,000 forgivable loan would cover the developer's City engineering and building permit fees. As mentioned above, the loan carries 0% interest over a 20-year term, and is forgiven in two equal tranches on the 10th and 20th anniversaries of the loan disbursement contingent upon the developer maintaining compliance and continuing to operate the project as a dedicated youth housing facility. Any unauthorized transfer or operational default immediately halts forgiveness and accelerates the debt at a 12% default interest rate.

As required, the developer has annexed the site into the City's Lighting and Landscaping District, the Public Safety Community Facilities District (CFD), and the Contra Costa County Fire Protection District CFD to pay its share of the local emergency services it may utilize.

ATTACHMENTS: Resolution
Deed of Trust and Security Agreement
Loan Agreement
Promissory Note
Regulatory Agreement
Tri-Party Agreement

Resolution No. Page 1 of 2 July 20, 2026

BEFORE THE GOVERNING BOARD OF THE HOUSING AUTHORITY

OF THE CITY OF PITTSBURG

In the Matter of:

Amending the Housing Authority Budget to )
Appropriate Funds and Authorizing the )
Execution of a Loan Agreement and )
Associated Transaction Documents ) RESOLUTION NO. 26- With Village of Hope Pittsburg LLC for the )
Construction of Transitional Age Youth )
Housing at 5305 Kirker Pass Road )

WHEREAS, Transition Age Youth (TAY), defined as legally emancipated youth between 16 and 18 or young adults between 18 and 24 who are aging out of foster care, in state custody, or facing immediate homelessness, represent an exceptionally vulnerable segment of the local unhoused population requiring targeted supportive housing infrastructure; and

WHEREAS, the developer, Village of Hope Pittsburg LLC, a subsidiary of the Contra Costa Interfaith Transitional Housing, Inc., operating as "Hope Solutions," is proposing to construct a 15-unit community dedicated to transition-age youth paired with mandatory onsite wraparound supportive services; and

WHEREAS, the project utilizes approximately 0.8 acres of underutilized land owned by the Pittsburg Church of the Nazarene located at 5305 Kirker Pass Road (APN: 089- 060-009); and

WHEREAS, Hope Solutions has requested financial assistance from the Housing Authority of the City of Pittsburg ("Housing Authority") to overcome initial capital barriers associated with local development fees, and to enable the successful build-out of this service-enriched micro-housing community; and

WHEREAS, the Housing Authority proposes to provide a forgivable loan in an amount not to exceed $500,000 to cover City engineering and building permit fees; and

WHEREAS, the Housing Authority further proposes to allocate and appropriate $500,000 in Housing Successor Agency funds through a corresponding budget amendment to support the issuance and encumbrance of said forgivable loan; and

WHEREAS, said loan carries a 0% interest rate over a 20-year term and will be forgiven in two equal tranches on the 10th and 20th anniversaries of loan disbursement, contingent upon the developer maintaining compliance and continuing to operate the project as a dedicated youth housing facility; and

WHEREAS, a Tri-Party Agreement secures the Pittsburg Church of the Nazarene’s explicit fee-title consent to anchor the security instruments, a Regulatory Agreement, and all required municipal assessment district encumbrances to the land; and

Resolution No. Page 2 of 2 July 20, 2026
WHEREAS, the developer has agreed to annex the site into the City's regional assessment districts, including the City's Lighting and Landscaping District, the City’s Public Safety Community Facilities District (CFD), and the Contra Costa County Fire Protection District CFD.

NOW, THEREFORE, BE IT RESOLVED that the Governing Board of the Housing Authority of the City of Pittsburg hereby authorizes the City Manager to execute the Loan Agreement for the Village of Hope Transition-Age Youth housing project; and

BE IT FURTHER RESOLVED that the Governing Board of the Housing Authority of the City of Pittsburg hereby authorizes a budget amendment allocating and appropriating $500,000 in Housing Successor Agency funds for the purpose of funding the forgivable loan described herein; and

BE IT FURTHER RESOLVED that the Governing Board of the Housing Authority of the City of Pittsburg hereby authorizes the Executive Director to execute the associated transaction documents, including the Regulatory Agreement and Tri-Party Agreement.

PASSED AND ADOPTED by the Governing Board of the Housing Authority of the City of Pittsburg at a regular meeting on the 20th day of July 2026 by the following votes:

AYES:

NOES:

ABSTAINED:

ABSENT:

_________________
Dionne Adams, Chair
ATTEST:

Alice E. Evenson, Agency Secretary

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

Housing Authority of the City of Pittsburg
65 Civic Avenue
Pittsburg, CA 94565

EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383

Space above this line for Recorder’s use

FOR: The Western portion of a property located at 5305 Kirker Pass Road, Pittsburg, California, Contra Costa County, known as Assessor’s Parcel Number 089-060- 009.

LEASEHOLD DEED OF TRUST AND SECURITY AGREEMENT

THIS LEASEHOLD DEED OF TRUST AND SECURITY AGREEMENT (this “Deed of Trust”) is made as of July 20, 2026, by VILLAGE OF HOPE - PITTSBURG, LLC, a California limited liability company, a California limited liability company (“Trustor”) to Old Republic Title Company (“Trustee”) for the benefit of the Housing Authority of the City of Pittsburg, a public body, corporate and politic (“Beneficiary”).

RECITALS

A. Trustor has a leasehold interest on the Western portion of a property, which encompasses approximately 0.8 acres, as more particularly described in Exhibit A attached hereto and incorporated herein by this reference (the “Project Site”), on real property located at 5305 Kirker Pass Road, Pittsburg, California, Contra Costa County, known as Assessor’s Parcel Number 089-060-009 (the “Property or Land”).

B. Trustor and Beneficiary have entered into a Loan Agreement dated July 20, 2026 (the “Loan Agreement”) pursuant to which Beneficiary will provide a loan to Trustor in the amount of Five Hundred Thousand Dollars ($500,000) (the “ Loan”).

Trustor has also executed a promissory note evidencing the amount of the Loan (“Note”).

C. The Property is owned by the First Church of the Nazarene (the “Property Owner”.

D. The Loan is secured by this Deed of Trust.

E. As a condition to the Loan Agreement, Beneficiary has required that Trustor enter into this Deed of Trust and grant to Trustee for the benefit of Beneficiary, a lien and security interest in Trustor’s leasehold interest in the Property and in the improvements which include fifteen (15) units and ancillary facilities of transition age Docusign Envelope ID: C43D37E0-4E56-8267-82A1-55579E7A724A

youth (TAY) housing, facilities for on-site services, appurtenant landscaping and improvements (the “Development”).

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Trustee agrees as follows:

1. Grant in Trust. With the written consent of the Property Owner, Trustor irrevocably grants, transfers, conveys and assigns to Trustee, IN TRUST, WITH POWER OF SALE, for the benefit and security of Beneficiary, under and subject to the terms and conditions hereinafter set forth, Trustor’s leasehold interest in the Land to Trustee, in trust, with power of sale, together with all improvements now or hereafter erected on the property, and all easements, rights, appurtenances and rents (subject however to the rights and authorities given herein to Beneficiary to collect and apply such rents), all of which shall be deemed to be and remain a part of the Land secured by this Deed of Trust; and all of the foregoing, together with Trustor’s leasehold interest in the Land are hereinafter referred to as the "Property."

Trustor covenants that it lawfully holds the estate hereby conveyed and has the right to grant and convey the Property, and that, to the best of Trustor's knowledge, the Property is unencumbered except for encumbrances of record. Trustor warrants and will defend generally the title to the Property against all claims and demands, subject to encumbrances of record.

2. Obligations Secured. This Deed of Trust is given for the purpose of securing payment and performance of all present and future indebtedness evidenced by the Note, the Loan Agreement, the Regulatory Agreement and any amendment thereof, including principal and all other amounts payable under the Loan Agreement and the Note.

3. Preservation and Maintenance of Development. Trustor agrees to keep the Development in good condition and repair; not to remove or demolish any building thereon; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged, or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefore; to comply with all laws affecting the Development, Project Site, and Property or requiring any alterations or improvements to be made thereon; not to commit or permit waste thereof; not to commit, suffer, or permit any act upon the Development, Project Site, or Property in violation of law; to cultivate, irrigate, fertilize, fumigate, prune, and do all other acts which from the character or use of the Property may be reasonably necessary, the specific enumerations herein not excluding the general.

4. Hazardous Materials. Trustor shall not cause or permit any Hazardous Materials (as defined below) to be brought upon, kept, stored or used in, on, or about the Development by Trustor, or the agents, employees, contractors or invitees of Trustor except for materials commonly used in operation and maintenance of the Improvements, in each case in compliance with all applicable laws, and shall not cause Docusign Envelope ID: C43D37E0-4E56-8267-82A1-55579E7A724A

any release of Hazardous Materials into, onto, under or through the Land. If any Hazardous Material is discharged, released, dumped, or spilled in, on, under, or about the Land and results in any contamination of the Land or adjacent property, or otherwise results in the release or discharge of Hazardous Materials in, on, under or from the Land, Trustor shall promptly take all actions at Trustor’s sole expense as are necessary to comply with all Hazardous Materials Laws (as defined below).

Trustor shall indemnify, defend (with counsel approved by Beneficiary) and hold Beneficiary harmless from and against any and all claims, judgments, damages, penalties, fines, costs, liabilities and losses (including, without limitation, diminution in value of the Property, and sums paid in settlement of claims, attorney’s fees, consultant fees and expert fees) which arise during or after the term of this Deed of Trust as a result of any breach, contamination, discharge, or release of Hazardous Materials by Trustor, agents, employees, licensees, or invitees. This indemnification of Beneficiary by Trustor includes, without limitation, costs incurred in connection with any investigation of site conditions or any cleanup, remedial, removal or restoration work required by any federal, state or local governmental agency or political subdivision because of Hazardous Materials present in, on or under the Land or adjacent property caused by or a result of Trustor's activities. If any Hazardous Materials are discharged, released, dumped, or spilled in, on, under, or about the Land after Trustor obtains ownership and results in any contamination of the Land or adjacent property, or otherwise results in the release or discharge of Hazardous Materials in, on, under or from the Land, Trustor shall promptly take all actions at its sole expense as are necessary to comply with all Hazardous Materials Laws.

4.1 As used in this Deed of Trust, “Hazardous Materials” means any substance, material, or waste which is or becomes regulated by any local, state or federal authority, agency or governmental body, including any material or substance which is: (i) defined as a “hazardous waste,” “hazardous material,” “hazardous substance,” “extremely hazardous waste,” “restricted hazardous waste,” “pollutant, “ or any other terms comparable to the foregoing terms under any provision of California law or federal law as any such statutes and regulations now exist or may hereafter be amended, (ii) petroleum or petroleum products; (iii) asbestos; (iv) polychlorinated biphenyls, (v) radioactive chemicals, (vi) any material determined to hazardous based on deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity or toxicity, (vii) designated as a “hazardous substance” pursuant to Section 311 of the Clean Water Act (33 U.S.C. § 1317); (viii) defined as a “hazardous waste” pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. § 6901, et seq. (42 U.S.C. § 6903); (ix) defined as “hazardous substances” pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. § 9601, et seq.; or (x) determined by California, federal or local governmental authority to be capable of posing a risk of injury to health, safety or property. “Hazardous Materials” shall not include any substance or material or waste that is commonly used or present in the construction, operation and maintenance of affordable housing developments similar to the Development,

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4.2 As used in this Deed of Trust “Hazardous Materials Laws” means all federal, state and local laws, ordinances, regulations, orders and directives pertaining to Hazardous Materials, including without limitation, the laws, statutes and regulations cited in the preceding Section 4.1, as they may be amended from time to time.

5. Charges; Liens. Trustor shall pay at least ten days before delinquency all taxes, levies, assessments and other charges affecting the Development, Project Site, and Property that are (or if not paid may become) a lien on all or part of the Development, Project Site, and Property. Trustor shall pay when due, all obligations secured by or reducible to a lien, charge or encumbrance which does now or later may encumber all or part of the Development, Project Site, and Property or any interest in it, whether or not such lien, charge or encumbrance is or would be senior or subordinate to this Deed of Trust. Trustor shall give prompt notice to Beneficiary of any default under any mortgage, deed of trust or other security agreement with a lien on the Property.

6. Insurance. At all times during the term hereof, Trustor shall at Trustor’s expense, maintain the insurance policies required in Section 4.12 of the Loan Agreement.

Trustor shall file with Beneficiary prior to recordation of this Deed of Trust, certificates (or such other proof as Beneficiary may reasonably require, including without limitation copies of the required insurance policies) evidencing each of the insurance policies and endorsements thereto, and such certificates (or policies) shall provide that at least thirty (30) days’ prior written notice shall be provided to Beneficiary prior to the expiration, cancellation or change in coverage under each such policy. If any insurance policy required pursuant to this Deed of Trust is canceled or the coverage provided thereunder is reduced, Trustor shall, within ten (10) days after receipt of written notice of such cancellation or reduction in coverage, but in no event later than the effective date of cancellation or reduction, file with Beneficiary a certificate showing that the required insurance has been reinstated or provided through another insurance company or companies. Upon failure to so file such certificate, Beneficiary may, without further notice and at its option, procure such insurance coverage at Trustor’s expense, and Trustor shall promptly reimburse Beneficiary for such expense upon receipt of billing from Beneficiary.

7. Defense of Security . Trustor agrees to appear in and defend an action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and to pay all reasonable costs and expenses, including cost of evidence of title and attorney’s fees, in any such action or proceeding in which Beneficiary or Trustee may appear.

8. Reimbursement of Costs . Trustor agrees to pay immediately and without demand all reasonable sums expended by Beneficiary or Trustee pursuant to the provisions hereof, with interest from date of expenditure at the amount allowed by law in effect at the date hereof.

9. Right to Cure. Should Trustor fail to make any payment or to comply with any provision herein, then Beneficiary or Trustee, each shall have the right but not the obligation, to make such payment or comply with such provision without notice to or Docusign Envelope ID: C43D37E0-4E56-8267-82A1-55579E7A724A

demand upon Trustor and without releasing Trustor from any obligation hereof, may make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof. Beneficiary and Trustee are hereby authorized to enter upon the Property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; to pay, purchase, contest, or compromise any encumbrance, charge, or lien which in th e judgment of either appears to be prior or superior hereto; and, in exercising any such powers, or in enforcing this Deed of Trust by judicial foreclosure, pay necessary expenses, employ counsel, and pay reasonable attorney’s fees. Beneficiary may make or cause to be made reasonable entries upon the Property and inspections of the Property, provided that Beneficiary shall give Trustor reasonable notice prior to any such inspection.

10. Condemnation Award . Any award of damages in connection with any condemnation for public use of or injury to the Property or any part thereof is hereby assigned and shall be paid to Beneficiary who may apply such moneys received by it to any indebtedness secured hereby and in such order as Beneficiary may determine, or at option of Beneficiary the entire amount so collected or any part thereof may be released to Trustor. Such application or release shall not cure or waive any default or notice of defau lt hereunder or invalidate any act done pursuant to such notice.

11. Late Payment. By accepting payment of any sum secured hereby after its due date, Beneficiary does not waive its right either to require prompt payment when due of all other sums so secured or to declare an event of default under the Loan Agreement or Note for failure so to pay.

12. Release and Subordination . At any time or from time to t ime, without liability therefor and without notice, upon written request of Beneficiary and presentation of this Deed of Trust , Regulatory Agreement and Note and without affecting the personal liability of any person for payment of the indebtedness secured hereby, Trustee may reconvey all or any part of said Buildings; consent to the making of any map or plat thereof; join in granting any easement thereon; or join in any extension Regulatory Agreement.

13. Reconveyance. Upon written request of Beneficiary stating that all sums secured hereby have been satisfied, Trustee shall reconvey, without warranty, the Property. The recitals in any reconveyance executed under this Deed of Trust of any matters or facts shall be conclusive proof of the truthfulness thereof. Trustor shall pay all fees to Trustee and all record ation fees related to such reconveyance.

14. Indemnification. Trustor shall indemnify, defend (with counsel reasonably acceptable to Beneficiary), and hold harmless the Trustee and the Beneficiary from and against all claims arising directly or indirectly in any manner in connection with or as a result of (i) any breach of Trustor’s covenants under the Loan Agreement, the Regulatory Agreement, the Note, or this Deed of Trust (collectively the “Loan Documents”), (ii) any representation by Trustor in any Loan Documents which proves Docusign Envelope ID: C43D37E0-4E56-8267-82A1-55579E7A724A

to be false or misleading in any material respect when made, (iii) injury or death to persons or damage to the Development or other loss occurring on within the Development or in any improvement located thereon, whether caused by the negligence or any other act or omission of Trustor or any other person or by negligent, faulty, inadequate or defective design, building, construction or maintenance or any other condition or otherwise, and (iv) any claim, demand or cause of action, or any action or other proceeding, whether meritorious or not, brought or asserted against Beneficiary which relates to or arises out of the Development in connection with Trustor’s ownership, operation, or maintenance of the Development, or any Loan Documents or any transaction contemplated thereby, or any failure of Trustor to comply with all applicable state, federal and local laws and regulations applicable to the Development, provided that Beneficiary shall not be entitled to indemnification under this Section for matters caused by Beneficiary’s gross negligence or willful misconduct. The obligations of Trustor under this Section shall survive the terms of the Loan Agreement, the Regulatory Agreement, the Note, and Deed of Trust. Notwithstanding any contrary provision contained herein, the obligations of Trustor under this Section shall survive any foreclosure proceeding, any foreclosure sale, any delivery of a deed in lieu of foreclosure, any reversion in interest, and any release or reconveyance of this Deed of Trust.

15. Limitation of Liability. Beneficiary shall not be directly or indirectly liable to Trustor or any other person as a consequence of any of the following: (i) Beneficiary's exercise of or failure to exercise any rights, remedies or powers granted to Beneficiary in this Deed of Trust; (ii) Beneficiary's failure or refusal to perform or discharge any obligation or liability of Trustor under any agreement related to the Property or under this Deed of Trust; (iii) any waste committed by Trustor or any third parties, or (iv) any dangerous or defective condition of the Property. Trustor hereby expressly waives and releases all liability of the types described in this Section, and agrees that Trustor shall assert no claim related to any of the foregoing against Beneficiary.

16. Notice. Except for any notice required under applicable law to be given in another manner, any notice, request or consent required pursuant to this Deed of Trust shall be deemed delivered upon receipt when delivered personally, electronically, or by facsimile transmission, provided that a transmission report is generated reflecting the accurate transmission thereof, or three (3) business days after being deposited in the U.S. mail, first class postage prepaid, return receipt requested, or one (1) day after deposit with a nationally recognized overnight carrier addressed as follows:

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City: Housing Authority of the City Pittsburg
65 Civic Avenue
Pittsburg, CA 94565
Attn: Executive Director

Copy to: City Pittsburg
65 Civic Avenue
Pittsburg, CA 94565
Attn: City Attorney

Developer: c/o Hope Solutions
399 Taylor Boulevard, Suite 125
Pleasant Hill, CA 94523
Attention: Deanne Pearn, CEO

or to such other addresses as the parties may designate by notice as set forth above.

17. Due On Sale Without the Consent of Beneficiary . If the Development, any part of it, or interest in it is sold, or if Trustor agrees to sell, convey, or alienate said Development, by operation of law all obligations secured by this Deed of Trust shall immediately become due and payable.

18. Trustor's Right to Reinstate . Notwithstanding Beneficiary's acceleration of the sums secured by this Deed of Trust due to Trustor's breach, Trustor shall have the right to have any proceedings begun by Beneficiary to enforce this Deed of Trust discontinued at any time prior to entry of a judgment enforcing this Deed of Trust if:
(i) Trustor pays Beneficiary all sums which would be then due under this Deed of Trust if the Loan Agreement had no acceleration provision; (ii) Trustor cures all breaches of any other covenants or agreements of Trustor contained in this Deed of Trust; (iii) Trustor pays all reasonable expenses incurred by Beneficiary and Trustee in enforcing the covenants and agreements of Trustor contained in this Deed of Trust, and in enforcing Beneficiary's and Trustee's remedies as provided herein, including, but not limited to, reasonable attorney's fees; and (iv) Trustor takes such action as Beneficiary may reasonably require to assure that the lien of this Deed of Trust, Beneficiary's interest in the Development, Project Site, and Property, and Trustor's obligation to pay the sums secured by this Deed of Trust shall continue unimpaired. Upon such payment and cure by Trustor, this Deed of Trust and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred.

19. Successors and Assigns . The terms, covenants and conditions of this Deed of Trust shall be binding on and inure to the benefit of the heirs, legatees, devisees, administrators, executors, successors in interest, transferees and assigns of the Trustor, Beneficiary and Trustee.

20. Substitution of Trustee . Beneficiary may from time to time or at any time substitute a Trustee or Trustees to execute the trust hereby created, and when any Docusign Envelope ID: C43D37E0-4E56-8267-82A1-55579E7A724A

such substitution has been filed for record in the office of the recorder in Contra Costa County, it shall be conclusive evidence of the appointment of such Trustee or Trustees, and such new Trustee or Trustees shall succeed to all of the powers and duties of the Trustee or Trustees named herein.

IN WITNESS WHEREOF, the Trustor has executed this Deed of Trust.

Trustor,

Village of Hope – Pittsburg, LLC,
a California limited liability company

By: Contra Costa Interfaith Transitional Housing, Inc. dba Hope Solutions, a California nonprofit public benefit corporation, its sole member/manager

By: _____________________________
Deanne Pearn,
Chief Executive Officer

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Exhibit A

LEGAL DESCRIPTION OF PROPERTY

The land referred to in this Report is situated in the County of Contra Costa, City of Pittsburg, State of California, and is described as follows:

BEING A PORTION OF THE WEST 1/2 OF THE NORTHWEST 1/4 OF SECTION 29 TOWNSHIP 2 NORTH, RANGE 1 EAST, MOUNT DIABLO BASE AND MERIDIAN AND A SUBDIVISION OF PARCEL A AS SHOWN ON PARCEL MAP WAIVER PMW 88-01 FILED IN BOOK 14198, AT PAGE 255, CONTRA COSTA COUNTY RECORDS AND DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT LYING ON THE EASTERLY RIGHT OF WAY LINE OF

KIRKER PASS ROAD, SAID POINT ALSO BEING THE MOST NORTHWESTERLY

CORNER OF THAT CERTAIN PARCEL OF LAND DESCRIBED IN A QUITCLAIM DEED DATED FEBRUARY 18, 1987 FROM NORTHERN CALIFORNIA DISTRICT CHURCH OF

THE NAZARENE TO FIRST CHURCH OF THE NAZARENE OF PITTSBURG, FILED ON FEBRUARY 18, 1987, BOOK 13455 OR PAGE 24;

THENCE FROM SAID POINT OF BEGINNING, LEAVING SAID RIGHT OF WAY LINE, NORTH 81°27'07" EAST, A DISTANCE OF 59.39 FEET ALONG THE NORTHERLY BOUNDARY LINE OF SAID PARCEL A; THENCE LEAVING SAID NORTHERLY BOUNDARY LINE FROM A RADIAL LINE WHICH BEARS NORTH 89°51'01" WEST,

ALONG A NON-TANGENT CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF 70.00 FEET, SOUTHEASTERLY 83.52 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 68°21'44";

THENCE ALONG A REVERSE CURVE CONCAVE TO THE SOUTHWEST, HAVING A RADIUS OF 20.00 FEET, SOUTHEASTERLY 27.36 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 78°23'17";

THENCE SOUTH 10°10'32" WEST, A DISTANCE OF 25.46 FEET;

THENCE SOUTH 21°10'57" EAST, A DISTANCE OF 144.00 FEET;

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THENCE SOUTH 26°22'22" EAST, A DISTANCE OF 30.83 FEET TO A POINT ON THE SOUTH LINE OF SAID PARCEL A;

THENCE ALONG SAID SOUTH LINE, SOUTH 63°37'38" WEST, A DISTANCE OF 155.92

FEET TO A POINT ON THE EASTERLY RIGHT OF WAY LINE OF KIRKER PASS ROAD, SAID POINT ALSO BEING THE SOUTHWESTERLY CORNER OF SAID PARCEL A;

THENCE FROM A RADIAL LINE WHICH BEARS SOUTH 77°03’15” WEST, ALONG A NON-TANGENT CURVE CONCAVE TO THE EAST, HAVING A RADIUS OF 1440.00 FEET, NORTHERLY 337.43 FEET ALONG SAID CURVE AND EASTERLY RIGHT OF WAY LINE OF KIRKER PASS ROAD, THROUGH A CENTRAL ANGLE OF 13°25’34” TO THE POINT OF BEGINNING.

PER PARCEL MAP WAIVER, PARCEL 1, PMW 25-03, RECORDED NOVEMBER 14, 2025, INSTRUMENT NO. 2025- 0127999

APN: 089-060-009

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015.001/650726

LOAN AGREEMENT

by and between the

HOUSING AUTHORITY OF THE CITY OF PITTSBURG

and

CONTRA COSTA INTERFAITH TRANSITIONAL HOUSING INC.

DBA

VILLAGE OF HOPE – PITTSBURG, LLC A CALIFORNIA LIMITED LIABILITY

COMPANY

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TABLE OF CONTENTS

ARTICLE 1

DEFINITIONS AND EXHIBITS

Page
Section 1.1 Definitions ……………………………………………….……… 2
Section 1.2 Exhibits …………………………………………………..……… 5

ARTICLE 2

LOAN PROVISIONS

Section 2.1 Loan …………………………………………………….……… 5
Section 2.2 Interest …………………………………………………………. 6
Section 2.3 Use of Loan Proceeds………………………….…................. 6 Section 2.4 Security ………………………………………………..…......... 6
Section 2.5 Conditions Precedent…………………………………………. 6
Section 2.6 Disbursement of Loan Proceeds…………………………….. 7 Section 2.7 Repayment Schedule …………………………………………. 7
Section 2.8 Audits …………………………………………………………… 8

ARTICLE 3

CONSTRUCTION OF THE DEVELOPMENT

Section 3.1 Permits …………………………………………………………. 8
Section 3.2 Commencement of Construction .……………….................. 8 Section 3.3 Completion of Construction ………………………..………... 8 Section 3.4 Construction Pursuant to Plans and Laws…..……………... 8 Section 3.5 Marketing Plan ……….………………………………..……… 9
Section 3.6 Equal Opportunity …………..………………………..………. 10
Section 3.7 Certificate of Completion …………………………………….. 10 Section 3.8 Progress Reports ……………………………………………... 10
Section 3.9 Construction Responsibilities ………………………………… 11 Section 3.10 Mechanics Liens, Stop Notices, and Notices of Completion 11 Section 3.11 Inspections ……………………………………………………... 11

ARTICLE 4

LOAN REQUIREMENTS

Section 4.1 Applicability …………………………………………………….. 12
Section 4.2 Financial Accountings and Post-Completion Audits…………. 12 Section 4.3 Information …………………………………………………….. 12
Section 4.4 Community Facilities District……………………………………… 12 Section 4.5 Hazardous Materials ………………………………………….. 12

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Page

Section 4.6 Maintenance and Damage …………………………………. 16
Section 4.7 Fees and Taxes ……………………………………………… 17
Section 4.8 Notice of Litigation …………………………………………… 17
Section 4.9 Operation of Development as Affordable Housing ……….. 17 Section 4.10 Nondiscrimination …………………………………………….. 17
Section 4.11 Prevailing Wages …………………………………………….. 17 Section 4.12 Insurance Requirements ……………………………………… 18

ARTICLE 5

ASSIGNMENT AND TRANSFERS

Section 5.1 Definitions ……………………………………………………… 19
Section 5.2 Purpose of Restrictions on Transfer ………………………… 19 Section 5.3 Prohibited Transfers ………………………………………….. 20
Section 5.4 Permitted Transfers Without Prior Approval….…………….. 20 Section 5.5 Permitted Transfers with Prior Approval …………………... 20 Section 5.6 Release of Borrower ………………………………………….. 21

ARTICLE 6

REPRESENTATIONS AND WARRANTIES OF BORROWER

Section 6.1 Representations and Warranties ……………………………. 21

ARTICLE 7

DEFAULT AND REMEDIES

Section 7.1 Events of Default ……………………………………………… 22
Section 7.2 Remedies ……………………………………………………… 24
Section 7.3 Right of Contest……………………………………………….. 25
Section 7.4 Remedies Cumulative ……………………………………….. 25

ARTICLE 8

GENERAL PROVISIONS

Section 8.1 Relationship of Parties ……………………………………….. 25 Section 8.2 No Claims ………………………………………………………. 26
Section 8.3 Amendments …………………………………………………… 26
Section 8.4 Indemnification…………………………………………………. 26
Section 8.5 Non-Liability of Officials, Employees and Agents ………….. 26 Section 8.6 No Third Party Beneficiaries …………………………………. 26 Section 8.7 Notices, Demands and Communications …………………… 25 Section 8.8 Applicable Law ………………………………………………… 27
Section 8.9 Agency Status ………………………………………………….. 27
Section 8.10 Parties Bound ………………………………………………….. 27
Section 8.11 Attorneys’ Fees …………….………………………………….. 27
Section 8.12 Severability……………………………………………………… 27
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Page

Section 8.13 Force Majeure………………………………………………….. 28
Section 8.14 Housing Authority Approval……………………………………. 28 Section 8.15 Waivers ………………………………………………………… 28
Section 8.16 Title of Parts and Sections …………………………………… 28 Section 8.17 Entire Understanding of the Parties ………………………… 28 Section 8.18 Multiple Originals; Counterpart ………………………………. 29

EXHIBIT A: Legal Description of the Property
EXHIBIT B: Approved Development Budget
EXHIBIT C: Form of Certificate of Completion
EXHIBIT D: Development Fees

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LOAN AGREEMENT
Hope Solutions

This Loan Agreement (this “Agreement”) is entered into as of July 20, 2026 (“Effective Date”) by and between the Housing Authority of the City of Pittsburg, a public body, corporate and politic (the “Housing Authority) and Village of Hope - Pittsburg, LLC, a California limited liability company (“Borrower”). Borrower and Housing Authority are hereinafter collectively referred to as the “Parties.”

RECITALS

A. Borrower is constructing housing for transition age youth (TAY) on a leasehold interest in real property located at 5305 Kirker Pass Road, Pittsburg, California, Contra Costa County known as Assessor’s Parcel Number 089-060-009 (the “Property”), as more particularly described in Exhibit A attached hereto and incorporated hereto by this reference.

B. Borrower intends to construct fifteen (15) TAY housing units and ancillary facilities on the western portion of the Property (the “Project Site”), for individuals and families who are 50% of area median income (“AMI”) or less (the “Development”).

C. Borrower agrees to provide wraparound services that include but are not limited to services such as case management, life skills training, education and employment support, and mental health services that will help Transition Age Youth develop the skills and resources needed for successful independent living.

D. The Housing Authority proposes to provide a forgivable loan in an amount not to exceed FIVE HUNDRED THOUSAND DOLLARS ($500,000) (the “Loan”) to the Borrower to provide partial financing for Development Fees associated with the construction of the Development, subject to the terms and conditions set forth in this Agreement.

E. The Housing Authority has the authority to issue construction loans and mortgage loans to finance the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing under the Housing Authorities Law, Health & Safety Code section 34312.3(a)(2).

F. Because the Property is not owned by the Borrower, Borrower must obtain from the First Church of the Nazarene (the “Property Owner”) written consent allowing the recording of the Deed of Trust, Regulatory Agreement, and any other encumbrances related to the City’s Community Facilities District, against the Property (the “Property Owner Written Consent”).

G. Concurrently with the execution of this Agreement, Borrower shall execute with the Agency: (i) a promissory note (“Note”) in the amount of the Loan, (ii) a Deed of Trust and Security Agreement (“Deed of Trust”) which shall provide Agency with a security interest in the Property and the Development, and (iii) an Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants (“Regulatory Agreement”) which shall restrict occupancy in the Development to persons and families who are 50% of AMI or less. This Agreement, the Note, the Deed of Trust, the Regulatory Agreement, and the Property Owner Written Consent are hereinafter collectively referred to as the “Loan Documents.”

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H. The Housing Authority has determined that the provision of the Loan for the Development pursuant to the terms of this Agreement will support the construction and development of TAY housing and provide the financial support necessary to make the Development economically feasible and affordable to individuals and families who are 50% of AMI or less.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

ARTICLE 1

DEFINITIONS AND EXHIBITS

Section 1.1 Definitions. When used in this Agreement, the following terms have the respective meanings assigned to them in this Section 1.1.

(a) “Housing Authority” means the Housing Authority of the City of Pittsburg.

(b) “Agreement” means this Loan Agreement.

(c) “Approved Development Budget” means the budget, as approved by the Housing Authority, and attached hereto and incorporated herein as Exhibit B.

(d) “Borrower” means Village of Hope- Pittsburg LLC, a California limited liability company and its permitted successors and assigns hereunder.

(e) “Certificate of Completion” means the certificate to be issued by the Housing Authority pursuant to Section 3.9 of this Agreement. The form of the Certificate of Completion is attached hereto as Exhibit C.

(f) “City” means the City of Pittsburg, a general law city.

(g) “County” means the County of Contra Costa, a political subdivision of the State of California.

(h) “Deed of Trust” means the deed of trust that will encumber the Development to secure performance and repayment of the Loan.

(i) “Default” has the meaning set forth in Section 7.1 below.

(j) “Development” means the Improvements.

(k) “Development Fees” means those fees incurred by the Borrower and to be paid to the City in connection with the Development as set forth in Exhibit D.

(l) “Development Fiscal Year” means the period from July 1 through June 30 of the following year.

(m) “Environmental Law” has the meaning set forth in Section 4.6 below.

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(n) “Hazardous Materials” has the meaning set forth in Section 4.6 below.

(o) “Hazardous Materials Claim” has the meaning set forth in Section 4.6 below.

(p) “Improvements” means the fifteen units of TAY housing, and facilities for on-site services to be constructed on the Project Site in accordance with the Loan Documents, plus appurtenant landscaping and improvements.

(q) “Loan” means the loan of monies from the Housing Authority to the Borrower for a total principal amount not to exceed Five Hundred Thousand Dollars ($500,000).

(r) “Loan Documents” means this Agreement, the Note, the Deed of Trust, the Regulatory Agreement, and the Property Owner Written Consent.

(s) “Loan Proceeds” has the meaning set forth in Section 2.1 below.

(t) “Note” means the promissory note that will evidence Borrower’s obligation to perform or repay the Loan.

(u) “Parties” means the Housing Authority and Borrower.

(v) “Project Site” means the western portion of the Property where the Development will be constructed.

(w) “Property” means the leasehold interest in the real property located in the City as more particularly described in the attached Exhibit A.

(x) “Property Owner” means the owner of the Property according to the County records is the First Church of the Nazarene.

(y) “Property Owner Written Consent” because the Property is not owned by the Borrower, Borrower must obtain written consent from the Property Owner allowing the recording of the Deed of Trust, Regulatory Agreement, and any other encumbrances related to the City’s Community Facilities District, against the Property.

(aa) “Regulatory Agreement” means the Regulatory Agreement and Declaration of Restrictive Covenants dated as of the date hereof between the Housing Authority and Borrower which restricts the occupancy and rents for the Development.

(bb) “Term” means the term of the Loan as set forth in Section 2.7 below.

(cc) “Transfer” means:

(i) Any total or partial sale, lease, assignment, or other conveyance, or any trust or power, or any transfer in any other mode or form, of or with respect to this Agreement or of any part of or interest in the Development, or any agreement to do any of the foregoing; or

(ii) Any total or partial sale, assignment, or other conveyance, or any trust or power, or any transfer in any other mode or form, of or with respect to any ownership interest in the Borrower or Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

any agreement to do any of the foregoing provided however any transfer by the Borrower of its limited partnership interest shall not be considered a Transfer. The Borrower may amend its partnership agreement to effect changes in its limited partners permitted above and to effect other changes which do not affect the Housing Authority.

(dd) “Unit” means one of the fifteen (15) residential units to be constructed on the Project Site.

(ee) “Very low-income household” means a family whose total family income does not exceed fifty percent (50%) of the area median family income, as determined by the United States Department of Housing and Urban Development.

(ff) “Transition Age Youth” means a youth between the ages of 16 and 18 who is legally emancipated or a young adult between the ages of 18 and 24 who may be in State custody, foster care, homeless or at-risk of being unhoused.

Section 1.2 Exhibits. The following exhibits are attached to this Agreement and incorporated into this Agreement by this reference:

EXHIBIT A: Legal Description of the Property
EXHIBIT B: Approved Development Budget
EXHIBIT C: Form of Certificate of Completion
EXHIBIT D: Development Fees

ARTICLE 2

LOAN PROVISIONS

Section 2.1 Loan. The Housing Authority shall provide the Loan in an amount not to exceed Five Hundred Thousand Dollars ($500,000) to Borrower, provided that Borrower has complied with all conditions precedent to disbursement of the Loan as set forth in Section 2.5, the proceeds of the Loan (“Loan Proceeds”) shall be disbursed in accordance with Section 2.6 hereof.

Section 2.2 Interest.

(a) Subject to the provisions of Section 2.2(b) below, Loan interest shall be at zero percent (0%) per annum.

(b) In the event of a Default, interest on the Loan shall accrue, commencing on the date of Default and continuing until such time as the Loan is repaid in full or the Default is cured, at the default rate of the lesser of twelve percent (12%) compounded annually, or the highest rate permitted by law.

Section 2.3 Use of Loan Proceeds.

(a) Borrower shall use the Loan Proceeds solely to pay for Development Fees imposed on the Development by the City. In the event that the Loan Proceeds exceed the amount of City Development Fees, the Borrower may use the remaining Loan Proceeds for costs associated with the Development or construction of the Development.

(b) Borrower shall not use the Loan Proceeds for any other purpose without the prior written consent of the Housing Authority.

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Section 2.4 Security. As security for performance and repayment of this Agreement and the Note, Borrower shall execute the Deed of Trust in favor of the Housing Authority as beneficiary pursuant to which the Housing Authority shall be provided a lien against the Borrower’s leasehold interest in the Property and the Development. The Deed of Trust shall be dated as of the Effective Date and shall be recorded in the official records of Contra Costa County on the Effective Date. The Deed of Trust may be subordinated only to the ground lease and such liens and encumbrances approved in writing by the Housing Authority.

Section 2.5 Conditions Precedent. Agency‘s obligation to fund the Loan and disburse the Loan Proceeds is conditioned upon the satisfaction of all of the following conditions:

(a) Borrower holds leasehold title to the Property;

(b) there exists no Default by Borrower nor any act, failure, omission, or condition that would constitute an event of Default under the Loan Documents;

(c) receipt by Housing Authority of a certified corporate resolution of Borrower’s governing body indicating Borrower has authorized this transaction and that the persons executing the Loan Documents on Borrower’s behalf have been duly authorized to do so;

(d) Borrower’s execution and delivery to the Housing Authority of the Loan Documents, acknowledged where appropriate;

(e) receipt by the Housing Authority of evidence that Borrower has sufficient financing commitments to construct the Development;

(f) the recordation of the Deed of Trust and the Regulatory Agreement in the official records of the County of Contra Costa;

(g) the issuance by an insurer acceptable to the Housing Authority of an A.L.T.A. lender’s policy of insurance (“Title Policy”) insuring the priority of the Deed of Trust in the amount of the Loan, subject only to such exceptions and exclusions as may be reasonably acceptable to the Housing Authority, and containing such endorsements as Agency may reasonably require, with the cost of such Title Policy to be paid by Borrower;

(h) Borrower has furnished the Housing Authority with evidence of the insurance coverage meeting the requirements of this Agreement and the Deed of Trust;

(i) Borrower’s delivery to the Housing Authority and the Housing Authority approval of the Approved Development Budget;

(j) Copies of such other documents related to the construction and financing of the Development as the Housing Authority may reasonably request; and

(k) No material adverse change as determined by the Housing Authority in its reasonable judgment shall have occurred in the condition of the Property, the Project Site, or the Improvements or in the financial or other condition of Borrower since the date of this Agreement.

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Section 2.6 Disbursement of Loan Proceeds. Upon satisfaction of the conditions set forth in Section 2.5, at close of escrow for the Loan, the Housing Authority will disburse the Loan Proceeds to the City to pay for the Development Fees required for the construction of the Development, as set forth in Exhibit D. Any remining Loan Proceeds will be disbursed to the Borrower.

Section 2.7 Repayment Schedule.

(a) Term. The term of the Loan shall be twenty (20) years (the “Term”).

(b) Repayment of Loan. Provided that the Borrower has continued to own and operate the Development, that the Borrower has complied with the terms and conditions of the Loan Documents, that there are no outstanding or uncured defaults, or no unapproved transfers, Two Hundred Fifty Thousand Dollars ($250,000) of the Loan will be forgiven on the tenth (10th) anniversary of this Agreement.

Provided that the Borrower has continued to own and operate the Development, that the Borrower has complied with the terms and conditions of the Loan Documents, that there are no outstanding or uncured defaults, or no unapproved transfers, Two Hundred Fifty Thousand Dollars ($250,000) of the Loan will be forgiven on the twentieth (20th) anniversary of this Agreement.

(c) In the Event of a Default. The occurrence of an Event of Default for which the Housing Authority exercises its right to cause the Loan indebtedness to become immediately due and payable, or for which the Loan indebtedness is automatically specified to become immediately due and payable pursuant to applicable subsections of this Agreement.

(d) Maturity Date. At the conclusion of the Term (the “Maturity Date”) occurs on the twentieth (20th) anniversary of this Agreement or when the Loan is paid in full, whichever occurs first.

ARTICLE 3

CONSTRUCTION OF THE IMPROVEMENTS

Section 3.1 Permits. All permits and approvals necessary for the construction of the Improvements on the Project Site must be received, and all financing for construction of the Improvements obtained, by no later than , 2026 or the Housing Authority, at its option, and with thirty (30) days written notice and opportunity to cure, may withdraw its financial support.

Section 3.2 Commencement of Construction. Borrower shall commence construction of the Improvements no later than the forty-five (45) days from the day the building permits were issued whichever is earlier. (“Commencement of Construction”).

Section 3.3 Completion of Construction. Borrower shall diligently prosecute construction of the Improvements to completion and shall complete construction of the Improvements no later than eighteen (18) months from the Commencement of Construction or whichever is earlier.

Section 3.4 Construction Pursuant to Plans and Laws.

(a) Borrower shall construct the Improvements in conformance with the plans and specifications approved by the City and/or Housing Authority. Borrower shall notify the City and/or Housing Authority in a timely manner of any changes in the work required to be performed under this Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

Agreement, including any additions, changes, or deletions to the plans and specifications. A written change order authorized by the City and/or Housing Authority must be obtained before any of the following changes, additions, or deletions in work for the Improvement may be performed and must have or obtain the proper approvals and permits required by the changes, additions, or deletions, or any material change in building materials or equipment, specifications, or the structural or architectural design or appearance of the Improvement as provided in the plans and specifications. Consent to any additions, changes, or deletions to the work shall not relieve or release Borrower from any other obligations under this Agreement or relieve or release Borrower or its surety from any surety bond. City and/or Housing Authority shall use its best efforts to approve or disapprove change orders within fifteen (15) working days of receipt of a request for approval.

(b) Borrower shall comply with all federal, state and local laws, regulations, ordinances and rules applicable to the Project Site, Property, and the Development. Without limiting the generality of the foregoing, Borrower shall cause all work performed in connection with the Improvements to be performed in compliance with (i) all applicable laws, ordinances, rules and regulations of federal, state, county or municipal governments or agencies now in force or that may be enacted hereafter, including, to the extent required by law, the prevailing wage provisions of section 1770 et seq. of the California Labor Code and implementing rules and regulations, (ii) all directions, rules and regulations of any fire marshal, health officer, building inspector, or other officer of every governmental agency now having or hereafter acquiring jurisdiction, (iii) all applicable Environmental Laws (as defined herein) and (iv) all applicable statutes and regulations relating to accessibility for the disabled. The work shall proceed only after procurement of each permit, license, or other authorization that may be required by any governmental agency having jurisdiction, and Borrower shall be responsible for the procurement and maintenance thereof, as may be required of Borrower and all entities engaged in work on the Improvements.

Section 3.5 Marketing Plan.

(a) Prior to the projected date of the completion of the Improvements, Borrower shall submit to the Housing Authority for approval its plan for marketing the Development to income-eligible households as required pursuant to the Regulatory Agreement, including information on affirmative marketing efforts, compliance with fair housing laws, and specific plans to provide stable and supportive living environments for transition age youth who may be experiencing homelessness, aging out of foster care, or facing other challenges as they navigate the transition to independence..

(b) Upon receipt of the marketing plan, the Housing Authority shall promptly review the marketing plan and shall approve or disapprove it within thirty (30) days after submission. If the marketing plan is not approved, Borrower shall submit a revised marketing plan within thirty (30) days.

If the Housing Authority does not approve the revised marketing plan because Borrower fails to make specific revisions requested by the Housing Authority, Borrower shall be in default hereunder.

Section 3.6 Equal Opportunity. During the construction of the Improvements there shall be no discrimination on the basis of race, color, creed, religion, age, sex, sexual orientation, marital status, national origin, ancestry, or disability in the hiring, firing, promoting, or demoting of any person engaged in the construction of the Development, and Borrower shall direct its contractors to refrain from discrimination on such basis.

Section 3.7 Certificate of Completion. After Housing Authority has determined that the obligations of the Borrower under this Article 3 have been met, Borrower may request that the Housing Authority issue a Certificate of Completion in substantially the form shown in Exhibit C, which Housing Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

Authority shall do within thirty (30) days of such request. The Housing Authority shall have no obligation to consider whether the obligations of the Borrower under this Article 3 have been met until Housing Authority has received certification from the City’s Building Department stating that the Improvements have been made in accordance with the plans and specifications approved by the City and/or the Housing Authority (including any changes as have been approved by the City and/or Housing Authority pursuant to Section 3.6(a) above) and in accordance with this Agreement.

If the Borrower requests issuance of a Certificate of Completion and the Housing Authority refuses to issue such Certificate of Completion, the Housing Authority shall provide the Borrower with a written explanation of its refusal within thirty (30) days of the Borrower’s request.

Issuance by the Housing Authority of a Certificate of Completion shall not be deemed a notice of completion under the California Civil Code, nor shall it constitute evidence of compliance with or satisfaction of any obligation of the borrower to any holder of deed of trust securing money loaned to finance the Development, other than the Housing Authority.

Section 3.8 Progress Reports. Until such time as Borrower has received a Certificate of Completion from the Housing Authority, Borrower shall provide the Housing Authority progress reports regarding the status of the construction of the Improvements from time to time and upon request.

Section 3.9 Construction Responsibilities.

(a) It shall be the responsibility of Borrower to coordinate and schedule the work to be performed so that commencement and completion of construction will take place in accordance with this Agreement.

(b) Borrower shall be solely responsible for all aspects of Borrower’s conduct in connection with the Development, including (but not limited to) the quality and suitability of the plans and specifications, the supervision of construction work and the qualifications, financial condition, and performance of all architects, engineers, contractors, subcontractors, suppliers, consultants, and property manager. Any review or inspection undertaken by the Housing Authority with reference to the Development is solely for the purpose of determining whether Borrower is properly discharging its obligations to the Housing Authority and should not be relied upon by Borrower or by any third parties as a warranty or representation by the Housing Authority as to the quality of the design or construction of the Development.

Section 3.10 Mechanics Lien, Stop Notices, and Notices of Completion.

(a) If any claim of lien is filed against the Project Site, Development or Property, or a stop notice affecting the Loan is served on the Housing Authority or any other lender or other third party in connection with the Development, the Borrower shall, within twenty (20) days after such filing or service, either pay and fully discharge the lien or stop notice, effect the release of such lien or stop notice by delivering to the Housing Authority a surety bond in sufficient form and amount, or provide the Housing Authority with other assurance satisfactory to the Housing Authority that such claim of lien or stop notice will be paid or discharged.

(b) If Borrower fails to discharge any lien, encumbrance, charge, or claim in the manner required in this Section, then in addition to any other right or remedy, the Housing Authority may (but shall be under no obligation to) discharge such lien, encumbrance, charge, or claim at Borrower’s expense. Alternatively, the Housing Authority may require Borrower to immediately deposit with the Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

Housing Authority, the amount necessary to satisfy such lien or claim and any costs, pending resolution thereof. The Housing Authority may use such deposit to satisfy any claim or lien that is adversely determined against Borrower.

(c) Borrower shall file a valid notice of cessation or notice of completion upon cessation of construction on the Development for a continuous period of thirty (30) days or more, and take all other reasonable steps to forestall the assertion of claims of lien against the Project Site, Development, or the Property. Borrower authorizes the Housing Authority, but without any obligation, to record any notices of completion or cessation of labor, or any other notice that the Housing Authority deems necessary to protect its interest in the Development and Property.

Section 3.11 Inspections. Borrower shall permit and facilitate, and shall require its contractors to permit and facilitate, observation and inspection at the Development by the Housing Authority and by public authorities during reasonable business hours for the purposes of determining compliance with this Agreement and that the Borrower is maintaining the Development in a manner satisfactory to the City and the Housing Authority.

ARTICLE 4

LOAN REQUIREMENTS

Section 4.1 Applicability. The Borrower shall comply with this Article 4 throughout the term of this Agreement.

Section 4.2 Financial Accountings and Post-Completion Audits. No later than sixty (60) days following completion of construction of the Improvements, Borrower shall provide to the Housing Authority, upon request, an initial estimated unaudited financial accounting of all sources and uses of funds for the Development. No later than one hundred fifty (150) days following completion of construction of the Improvements, Borrower shall submit to the Housing Authority an audited financial report showing the sources and uses of all funds utilized for the Development.

Section 4.3 Information. Borrower shall provide any information reasonably requested by the Housing Authority in connection with the Development and with this Agreement.

Section 4.4 Community Facilities Districts and Assessments (CFD).

Borrowers agree to pay its fair share of any levies imposed by any assessment district, enhanced infrastructure financing district, landscaping and lighting districts, community facilities districts, tax- exempt financing mechanisms, or other funding mechanisms related to public safety, traffic, parks, sewer, water, fire, or other infrastructure improvements (including, without limitation, design, acquisition, construction and maintenance costs).

(a) Landscape and Lighting. Borrower agrees that the Development and Property will be subject to the City’s existing Lighting and Landscaping District, as established pursuant to City Resolution No. 88-7324.

(b) Police CFD. Borrower agrees to cooperate with City’s efforts to annex the Development and Property into City of Pittsburg Community Facilities District No. 2004-01, as adopted pursuant to Resolution No. 04-10071 (the “Police Services District”) in order to fund police services made necessary by the Development. Borrower shall take the steps necessary, as determined by the City Manager and City Attorney, to annex the Property into the City’s Police Services District prior to issuance of any permits for the Development.

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(c) Fire District CFD. Borrower agrees to cooperate with City’s efforts to annex the Development and Property into Contra Costa County Fire Protection Community Facilities District 2017-1, as established by Resolutions 17-13298 and 17-13311 and Ordinance 17-1428 (the “Fire Services District”) in order to fund fire services made necessary by the Development. Borrower shall take the steps necessary, as determined by the City Manager and City Attorney, to annex the Property into the City’s Fire Services District prior to issuance of any permits for the Development.

(d) Maintenance of Project Facilities. Upon final approval of the Planning Department of the City of Pittsburg, Borrower agrees to construct bioretention basins to treat stormwater from the Development, which will be classified as an AB2162 Project. The Property is not annexed in the City of Pittsburg Community Facilities District 2016-1 Maintenance of Project Facilities and will remain thus.

(e) Crime Free Housing Program. Borrower agrees to participate in the City’s Crime Free Housing Program.

(f) Business License. At all times, Borrower, its contractors and subcontractors are required to maintain an active business license with the City.

(g) Continuing Obligations. Notwithstanding any other provision of this Agreement, Borrower’s obligations under this Section 4.4, inclusive, shall constitute a continuing obligation and bind Borrower, its successors and/or assigns as long the Development exists.

Borrower’s obligations under this Section 4.4 shall survive this Agreement's termination and continue in full force and effect until the Development ceases and all entitlements are vacated. Failure by Borrower of any of the obligations listed in this Section 4.4 will constitute a Default under Section 7.1.

Section 4.5 Hazardous Materials.

(a) Borrower shall not cause or permit any Hazardous Materials (as defined below) to be brought upon, kept, stored or used in, on, or about the Project Site, Development, or Property by Borrower, or the agents, employees, contractors or invitees of Borrower except for materials commonly used in construction activities similar to those related to the Development, or in the operation and maintenance of the Property and the Improvements, in each case in compliance with all applicable laws, and shall not cause any release of Hazardous Materials into, onto, under or through the Property.

If any Hazardous Material is discharged, released, dumped, or spilled in, on, under, or about the Property and results in any contamination of the Property or adjacent property, or otherwise results in the release or discharge of Hazardous Materials in, on, under or from the Property, Borrower shall promptly take all actions at Borrower’s sole expense as are necessary to comply with all Environmental Laws (as defined below).
(i) “Hazardous Materials” means any substance, material or waste which is or becomes regulated by any federal, state or local governmental authority, and includes without limitation (i) petroleum or oil or gas or any direct or indirect product or by-product thereof; (ii) asbestos and any material containing asbestos; (iii) any substance, material or waste regulated by or listed (directly or by reference) as a “hazardous substance”, “hazardous material”, “hazardous waste”, “toxic waste”, “toxic pollutant”, “toxic substance”, “solid waste” or “pollutant or contaminant” in or pursuant to, or similarly identified as hazardous to human health or the environment in or pursuant to, the Toxic Substances Control Act (15 U.S.C. 2601, et seq.); the Comprehensive Environmental Response, Compensation Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

and Liability Act (42 U.S.C. Section 9601, et seq.), the Hazardous Materials Transportation Authorization Act (49 U.S.C. Section 5101, et seq.), the Resource Conservation and Recovery Act (42 U.S.C. 6901, et seq.), the Federal Water Pollution Control Act (33 U.S.C. Section 1251), the Clean Air Act (42 U.S.C. Section 7401, et seq.), the California Underground Storage of Hazardous Substances Act (California Health and Safety Code Section 25280, et seq.), the California Hazardous Substances Account Act (California Health and Safety Code Section 25300, et seq.), the California Hazardous Waste Act (California Health and Safety Code Section 25100, et seq.), the California Safe Drinking Water and Toxic Enforcement Act (California Health and Safety Code Section 25249.5, et seq.), and the Porter-Cologne Water Quality Control Act (California Water Code Section 13000, et seq.), as they now exist or are hereafter amended, together with any regulations promulgated thereunder; (iv) any substance, material or waste which is defined as such or regulated by any “Superfund” or “Superlien” law, or any Environmental Law; or (v) any other substance, material, chemical, waste or pollutant identified as hazardous or toxic and regulated under any other federal, state or local environmental law, including without limitation, asbestos, polychlorinated biphenyls, petroleum, natural gas and synthetic fuel products and by-products.

(ii) “Environmental Law” means all federal, state or local statutes, ordinances, rules, regulations, orders, decrees, judgments or common law doctrines, and provisions and conditions of permits, licenses and other operating authorizations regulating, or relating to, or imposing liability or standards of conduct concerning (i) pollution or protection of the environment, including natural resources; (ii) exposure of persons, including employees and agents, to Hazardous Materials (as defined above) or other products, raw materials, chemicals or other substances; (iii) protection of the public health or welfare from the effects of by-products, wastes, emissions, discharges or releases of chemical substances from industrial or commercial activities; (iv) the manufacture, use or introduction into commerce of chemical substances, including without limitation, their manufacture, formulation, labeling, distribution, transportation, handling, storage and disposal; or (iv) the use, release or disposal of toxic or hazardous substances or Hazardous Materials or the remediation of air, surface waters, groundwaters or soil, as now or may at any later time be in effect, including but not limited to the Toxic Substances Control Act (15 U.S.C. 2601, et seq.); the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. Section 9601, et seq.), the Hazardous Materials Transportation Authorization Act (49 U.S.C. Section 5101, et seq.), the Resource Conservation and Recovery Act (42 U.S.C. 6901, et seq.), the Federal Water Pollution Control Act (33 U.S.C. Section 1251), the Clean Air Act (42 U.S.C. Section 7401, et seq.), the California Underground Storage of Hazardous Substances Act (California Health and Safety Code Section 25280, et seq.), the California Hazardous Substances Account Act (California Health and Safety Code Section 25300, et seq.), the California Hazardous Waste Act (California Health and Safety Code Section 25100, et seq.), the California Safe Drinking Water and Toxic Enforcement Act (California Health and Safety Code Section 25249.5, et seq.), and the Porter-Cologne Water Quality Control Act (California Water Code Section 13000, et seq.), as they now exist or are hereafter amended, together with any regulations promulgated thereunder.

(b) Borrower shall immediately advise the Housing Authority in writing if at any time it receives written notice of (i) any and all enforcement, cleanup, removal or other governmental or regulatory actions instituted, completed or threatened against Borrower or the Development pursuant to any applicable Environmental Law; (ii) all claims made or threatened by any third party against Borrower, the Development, the Project Site, or the Property relating to damage, contribution, cost recovery compensation, loss or injury resulting from any Hazardous Materials (the matters set forth in clauses (i) and (ii) above are hereinafter referred to as “Hazardous Materials Claims”); and (iii) Borrower’s discovery of any occurrence of condition on any real property adjoining or in the vicinity of the Development, Project Site, or Property that could cause the Development, Project Site, or Property Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

or any part thereof to be classified as “border-zone property” under the provision of California Health and Safety Code, Sections 25220 et seq. or any regulation adopted in accordance therewith, or to be otherwise subject to any restrictions on the ownership, occupancy, transferability or use of the Development under any Environmental Law.

(c) The Housing Authority shall have the right to join and participate in, as a party if it so elects, any legal proceedings or actions initiated in connection with any Hazardous Materials Claims and to have its reasonable attorneys’ fees in connection therewith paid by Borrower. Borrower shall indemnify, defend (with counsel reasonably acceptable to the City and/or Housing Authority) and hold harmless the City and Housing Authority and their respective council-members, board-members, officers, employees, agents, successors and assigns from and against any loss, damage, cost, expense or liability directly or indirectly arising out of or attributable to the use, generation, storage, release, threatened release, discharge, disposal, or presence of Hazardous Materials on, under, or about the Development including without limitation: (a) all foreseeable consequential damages; (b) the costs of any required or necessary repair, cleanup or detoxification of the Property and the preparation and implementation of any closure, remedial or other required plans; and (c) all reasonable costs and expenses incurred by the City and/or Housing Authority in connection with clauses (a) and (b), including but not limited to reasonable attorneys’ fees. This obligation to indemnify shall survive termination of this Agreement.

(d) Without the Housing Authority’s prior written consent, which shall not be unreasonably withheld, Borrower shall not take any remedial action in response to the presence of any Hazardous Materials on, under or about the Property, nor enter into any settlement agreement, consent decree, or other compromise in respect to any Hazardous Material Claims, which remedial action, settlement, consent decree or compromise might, in the Housing Authority’s reasonable judgment, impair the value of the Housing Authority’s security hereunder; provided, however, that the Housing Authority’s prior consent shall not be necessary in the event that the presence of Hazardous Materials on, under, or about the Property either poses an immediate threat to the health, safety or welfare of any individual or is of such a nature that an immediate remedial response is necessary and it is not reasonably possible to obtain the Housing Authority’s consent before taking such action, provided that in such event Borrower shall notify the Housing Authority as soon as practicable of any action so taken. The Housing Authority agrees not to withhold its consent, where such consent is required hereunder, if either (i) a particular remedial action is ordered by a court of competent jurisdiction, (ii) Borrower will or may be subjected to civil or criminal sanctions or penalties if it fails to take a required action; (iii) Borrower establishes to the reasonable satisfaction of the Housing Authority that there is no reasonable alternative to such remedial action which would result in less impairment of the Housing Authority’s security hereunder; or (iv) the action has been agreed to by the Housing Authority.

(e) Borrower hereby acknowledges and agrees that (i) this Section is intended as the Housing Authority’s written request for information (and Borrower’s response) concerning the environmental condition of the Property as required by California Code of Civil Procedure Section 726.5, and (ii) each representation and warranty in this Agreement (together with any indemnity obligation applicable to a breach of any such representation and warranty) with respect to the environmental condition of the Property is intended by the Parties to be an “environmental provision” for purposes of California Code of Civil Procedure Section 736.

Section 4.6 Maintenance and Damage.

(a) During the course of both construction and operation of the Improvements, Borrower shall maintain the Development in good repair and in a neat, clean and orderly condition. If there arises a Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

condition in contravention of this requirement, and if Borrower has not cured such condition within thirty (30) days after receiving a Housing Authority notice of such a condition, then in addition to any other rights available to the Housing Authority, the Housing Authority shall have the right to perform all acts necessary to cure such condition, and to establish or enforce a lien or other encumbrance against the Development.

(b) Subject to the requirements of senior lenders, and if economically feasible in the Housing Authority’s reasonable judgment, if any Improvements now or future improvements on the Project Site is damaged or destroyed, then Borrower shall, at its cost and expense, diligently undertake to repair or restore such improvement consistent with the plans and specifications approved by the City and/or Housing Authority with such changes as have been approved by the City and/or Housing Authority.

Such work or repair shall commence no later than the later of one hundred twenty (120) days after the damage or loss occurs or thirty (30) days following receipt of the insurance proceeds, and shall be complete within one (1) year thereafter (or such longer period for the commencement and completion as may be extended by the City and/or Housing Authority in its reasonable discretion). Any insurance proceeds collected for such damage or destruction shall be applied to the cost of such repairs or restoration and, if such insurance proceeds shall be insufficient for such purpose, then Borrower shall make up the deficiency.

Section 4.7 Fees and Taxes. Borrower shall be solely responsible for payment of all fees, assessments, taxes, charges, and levies imposed by any public authority or utility company with respect to the Development to the extent owned by Borrower, and shall pay such charges prior to delinquency. However, Borrower shall not be required to pay and discharge any such charge so long as (a) the legality thereof is being contested diligently and in good faith and by appropriate proceedings, and (b) if requested by the Housing Authority, Borrower deposits with the Housing Authority any funds or other forms of assurance that the Housing Authority in good faith from time to time determines appropriate to protect the Housing Authority from the consequences of the contest being unsuccessful.

Section 4.8 Notice of Litigation. Borrower shall promptly notify the Housing Authority in writing of any litigation materially affecting the Borrower, the Development or the Property and of any claims or disputes that involve a material risk of such litigation.

Section 4.9 Operation of Development as Affordable Housing. Promptly following the completion of construction of the Residential Units, Borrower shall continuously operate and maintain the fifteen (15) units of the Development, as multifamily residential housing dedicated for Transition Age Youth for individuals and families at rent levels in conformity with the Regulatory Agreement.

Section 4.10 Nondiscrimination. Borrower covenants by and for itself, and any successors in interest, that there shall be no discrimination against or segregation of, any person, or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Development, nor shall Borrower itself or any person claiming under or through it establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of Borrower. The foregoing covenants shall run with the land.

Section 4.11 Prevailing Wages. To the extent required by law, Borrower and all Borrower’s contractors shall comply with California Labor Code Section 1720 et seq. and all regulations adopted Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

pursuant thereto (collectively, “Prevailing Wage Laws”) and be responsible for carrying out the requirements of such provisions. Borrower shall, and hereby agrees to, unconditionally indemnify, reimburse, defend, protect and hold harmless the City and/or Housing Authority and its elective and appointive boards, commissions, officers, agents, attorneys, consultants and employees, and all of their respective successors and assigns, from and against any and all claims, demands, suits and actions at law or in equity, and losses, liabilities, expenses, penalties, fines, orders, judgments, injunctive or other relief, and costs and damages of every kind, nature and description (including but not limited to attorneys’ fees and court costs; with counsel reasonably acceptable to the Housing Authority), and administrative, enforcement or judicial proceedings, whether known or unknown, and which directly or indirectly, in whole or in part, are caused by, arise from, or relate to, or are alleged to be caused by, arise from, or relate to, the payment or requirement of payment of prevailing wages or the requirement of competitive bidding in the construction of the Project, the failure to comply with any state or federal labor laws, regulations or standards in connection with this Agreement, including but not limited to California Labor Code Section 1720 et seq. and the Prevailing Wage Laws, or any act or omission of Housing Authority or Borrower related to this Agreement with respect to the payment or requirement of payment of prevailing wages or the requirement of competitive bidding, whether or not any insurance policies shall have been determined to be applicable to any such claims, demands, suits, actions, losses, liabilities, expenses, penalties, fines, orders, judgments, injunctive or other relief, costs, damages, or administrative, enforcement or judicial proceedings. It is further agreed that the Housing Authority does not, and shall not, waive any rights against Borrower which it may have by reason of this indemnity and hold harmless agreement because of the acceptance by Housing Authority, or the deposit with the Housing Authority by Borrower, of any of the insurance policies described in this Agreement.

Section 4.12 Insurance Requirements. The Borrower shall maintain the following insurance coverage throughout the Term of the Loan:

(a) Workers Compensation insurance to the extent required by law, including employer’s liability coverage, with limits not less than one million dollars ($1,000,000) per accident.

(b) Comprehensive general liability insurance with limits not less than two million dollars ($2,000,000) per occurrence combined single limit for bodily injury and property damage, including coverage for contractual liability, personal injury, broadform property damage, products and completed operations.

(c) Comprehensive automobile liability insurance with limits not less than one million dollars ($1,000,000) per occurrence combined single limit for bodily injury and property damage, including coverage for owned, non-owned and hired vehicles, as applicable; provided, however, that if the borrower does not own or lease vehicles for purposes of this agreement, then no automobile insurance shall be required.

(d) Property insurance covering the Development, in form appropriate for the nature of such property, covering all risks of loss, excluding earthquake, for 100% of the replacement value, with deductible, if any, acceptable to the Housing Authority, naming the Housing Authority as a loss payee, as its interests may appear. Flood insurance shall be obtained if required by applicable federal regulations.

The Borrower shall cause any general contractor or agent working on the Development under direct contract with the Borrower to maintain insurance of the types and in at least the minimum amounts described in subsections (a), (b), and (c) above, except that the limit of liability for Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

comprehensive general liability insurance for subcontractors shall be one million dollars ($1,000,000), and shall require that such insurance shall meet all of the general requirements of subsections (e), (f), and (g) below, including, without limitation, the requirement of subsection (f). Subcontractors working on the Development under indirect contract with the Borrower shall be required to maintain the insurance described in subsections (a), (b), and (c) above. Liability and comprehensive automobile liability insurance to be maintained by such contractors and agents pursuant to this subsection shall name as additional insured the Housing Authority, their officers, agents, and employees, and members of the City Council and the Governing Board of the Housing Authority.

(e) The required insurance shall be provided under an occurrence form and Borrower shall maintain such coverage continuously so long as the Note is outstanding. Should any of the required insurance be provided under a form of coverage that includes an annual aggregate limit or provides that claims investigation or legal defense costs be included in such annual aggregate limit, such annual aggregate limit shall be three times the occurrence limits specified above.

(f) Comprehensive general liability, comprehensive automobile liability and property insurance policies shall be endorsed to name as an additional insured the Housing Authority, and their officers, agents and employees, and members of the City Council and Governing Board of the Housing Authority, and volunteers. The coverage and limits shall be (1) the minimum coverage and limits specified in this Agreement; or (2) the broader coverage and maximum limits of the coverage available to the named Insured; whichever is gr.

(g) All policies and bonds shall be endorsed to provide thirty (30) days prior written notice of cancellation, reduction in coverage, or intent not to renew to the address established for notices to the Housing Authority.

ARTICLE 5

ASSIGNMENT AND TRANSFERS

Section 5.1 Definitions. The definition of Transfer, as used in this Article is set forth in Section 1.1 hereof.

Section 5.2 Purpose of Restrictions on Transfer. This Agreement is entered into solely for the purpose of the Borrower’s construction and operation of the Development in accordance with the terms of this Agreement and the Regulatory Agreement. The qualifications and identity of the Borrower are of particular concern to the Housing Authority, in view of:

(a) The importance of the Development of the Property to the general welfare of the community.

(b) The public aids that have been made available by law and by the government for the purpose of making such Development possible;

(c) The reliance by the Housing Authority upon the unique qualifications and ability of the Borrower to serve as the catalyst for development of the Property and upon the continuing interest which the Borrower will have in the Property to assure the quality of the use, operation, and maintenance deemed critical by the Housing Authority in the development of the Property;

(d) The fact that a change in ownership or control of the owner of the Property, or of a substantial part thereof, or any other act or transaction involving or resulting in a significant change in Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

ownership or with respect to the identity of the parties in control of the Borrower or the degree thereof, is for practical purposes a transfer or disposition of the Property, the Project Site, or Development; and

(e) The importance to the Housing Authority of the standards of use, operation, and maintenance of the Development.

It is because of the qualifications and identity of the Borrower that the Housing Authority is entering into this Agreement and that Transfers are permitted only as provided in this Agreement.

Section 5.3 Prohibited Transfers. The limitations on Transfers set forth in this Article 5 shall apply throughout the Term. Except as expressly permitted in this Agreement, the Borrower represents that it has not made or created and agrees that it will not make or create or suffer to be made or created, any Transfer, either voluntarily or by operation of law, without the prior written approval of the Housing Authority.

Any Transfer made in contravention of this Section 5.3 shall, at the Housing Authority’s discretion, be void and shall be deemed to be a default under this Agreement, whether or not the Borrower knew of or participated in such Transfer.

Section 5.4 Permitted Transfers Without Prior Authority Approval. The only Transfers permitted at any time without the prior approval of the Authority are as follows:

(a) The lease of a Unit by Borrower to an occupant in the ordinary course of business and in compliance with the Regulatory Agreement.

Section 5.5 Permitted Transfers With Prior Approval. Except as permitted under Section 5.4, any Transfer shall be permitted only after (a) the Housing Authority, in its sole and reasonable discretion, has delivered to the Borrower its prior written approval of such Transfer, and (b) the transferee expressly assumes all obligations of Borrower imposed by this Agreement by signing this Agreement or such other reasonable documentation as Housing Authority may reasonably require.

Section 5.6 Release of Borrower. Upon all of the terms of this Article 5 being satisfied for a permitted Transfer to be effective, the Borrower or the successor transferor party, as applicable, shall be released from all liability under this Agreement so transferred arising subsequent to the effectiveness of such Transfer.

ARTICLE 6

REPRESENTATIONS AND WARRANTIES OF BORROWER

Section 6.1 Representations and Warranties. Borrower hereby represents and warrants to Authority as follows:

(a) Organization. Borrower is duly organized, validly existing non-profit company, in good standing under the laws of the State of California and has the power and authority to use the Property and carry on its business as now being conducted.

(b) Authority of Borrower. Borrower has full power and authority to execute and deliver this Agreement and to make and accept the borrowings contemplated hereunder, to execute and deliver the Loan Documents and all other documents or instruments executed and delivered, or to be Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

executed and delivered, pursuant to this Agreement, and to perform and observe the terms and provisions of the Loan Documents.

(c) Authority of Persons Executing Documents. The Loan Documents and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement have been executed and delivered by persons who are duly authorized to execute and deliver the same for and on behalf of Borrower, and all actions required under Borrower’s organizational documents and applicable governing law for the authorization, execution, delivery and performance of the Loan Documents and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement, have been duly taken (to the extent such actions are required as of the date of execution and delivery of the Loan Documents).

(d) Valid Binding Agreements. The Loan Documents and all other documents or instruments which have been executed and delivered pursuant to or in connection with this Agreement constitute or, if not yet executed or delivered, will when so executed and delivered constitute, legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with their respective terms, subject to laws affecting creditors’ rights and principles of equity.

(e) No Breach of Law or Agreement. Neither the execution nor delivery of the Loan Documents or any other documents or instruments executed and delivered, or to be executed or delivered, pursuant to this Agreement, nor the performance of any provision, condition, covenant or other term hereof or thereof, will conflict with or result in a breach of any statute, rule or regulation, or any judgment, decree or order of any court, board, commission or agency whatsoever binding on Borrower, or any provision of the organizational commission or agency whatsoever binding on Borrower, or any provision of the organizational documents of Borrower, or will conflict with or constitute a breach of or a default under any agreement to which Borrower is a party, or will result in the creation or imposition of any lien upon assets or property of Borrower, other than liens established pursuant hereto.

(f) Compliance with Laws; Consents and Approvals. The construction of the Development will comply with all applicable laws, ordinances, rules and regulations of federal, state and local governments and agencies and will all applicable directions, rules and regulations of the fire marshal, health officers, building inspector and other officers of any such government or agency.

(g) Pending Proceedings. Borrower is not in default under any law or regulation or under any order of any court, board, commission or agency whatsoever, and there are no claims, actions, suits or proceedings pending or, to the knowledge of Borrower, threatened against or affecting Borrower or the Development, at law or in equity, before or by any court, board, commission or agency whatsoever which might, if determined adversely to Borrower, materially affect Borrower’s ability to repay the Loan or impair the security to be given to the Housing Authority pursuant hereto.

(h) Title to Land. At the time of recordation of the Deed of Trust, Borrower will have given to the Housing Authority the executed Property Owner Written Consent and there will exist thereon or with respect thereto no lien, pledge or other encumbrance of any character whatsoever other than liens for acquisition, construction, current real property taxes, assessments not yet due and payable, and liens in favor of the Housing Authority or approved in writing by the Housing Authority.

(i) Financial Statements. The financial statements of Borrower and other financial data and information furnished by Borrower to the Housing Authority fairly present the information contained therein. As of the date of this Agreement, there has not been any adverse, material change in the Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

financial condition of Borrower from that shown by such financial statements and other date and information.

ARTICLE 7

DEFAULT AND REMEDIES

Section 7.1 Events of Default. Each of the following shall constitute a “Default” by Borrower under this Agreement:

(a) Failure to Obtain Approvals or Financing. Borrower fails to receive permits or approvals or obtain financing by the date specified in Article 3 above.

(b) Failure to Construct. Subject to Section 8.13, failure of Borrower to commence and complete construction of the Development within the times set forth in Article 3 above.

(c) Failure to Maintain Development. Failure to maintain the Development in good repair and in a neat, clean and orderly condition, satisfactory to the Housing Authority.

(d) Breach of Covenants. Failure to duly perform, comply with, or observe any of the conditions, terms, or covenants of any of the Loan Documents, and such failure having continued uncured for thirty (30) days after receipt of written notice thereof by Borrower from the Housing Authority or, if the breach cannot be cured within thirty (30) days, Borrower shall not be in breach so long as Borrower is diligently undertaking to cure such breach, and such breach is cured within ninety (90) days; provided, however, that if a different period or notice requirement is specified under any other section of this Article 7, the specific provisions shall control.

(e) Default Under Other Loans. Failure to make any payment or perform any of Borrower’s covenants, agreements, or obligations under the documents evidencing and securing any other financing for the Development following expiration of all applicable notice and cure periods.

(f) Insolvency. A court having jurisdiction shall have made or entered any decree or order (i) adjudging Borrower to be bankrupt or insolvent, (ii) approving as properly filed a petition seeking reorganization of Borrower or seeking any arrangement for Borrower under the bankruptcy law or any applicable debtor’s relief law or statute of the United States or any state or other jurisdiction, (iii) appointing a receiver, trustee, liquidator, or assignee of Borrower in bankruptcy or insolvency or for any of their properties, or (iv) directing the winding up or liquidation of Borrower, if any such decree or order described in clauses (i) to (iv), inclusive, shall have continued unstayed or undischarged for a period of ninety (90) days; or Borrower shall have admitted in writing its inability to pay its debts as they fall due or shall have voluntarily submitted to or filed a petition seeking any decree or order of the nature described in clauses (i) to (iv), inclusive. The occurrence of any of the events of Default in this paragraph shall act to accelerate automatically, without the need for any action by the Housing Authority, the indebtedness evidenced by the Note.

(g) Assignment; Attachment. Borrower shall have assigned its assets for the benefit of its creditors or suffered a sequestration or attachment of or execution on any substantial part of its property, unless the property so assigned, sequestered, attached or executed upon shall have been returned or released within ninety (90) days after such event or, if sooner, prior to sale pursuant to such sequestration, attachment, or execution. The occurrence of any of the events of default in this paragraph shall act to accelerate automatically, without the need for any action by the Housing Authority, the indebtedness evidenced by the Note.

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(h) Suspension; Termination. Borrower shall have voluntarily suspended its business [or, if Borrower is a partnership, the partnership shall have been dissolved or terminated, other than a technical termination of the partnership for tax purposes].

(i) Liens on the Development. The filing of any claim or lien (other than liens approved in writing by the Housing Authority) against the Development or any part thereof, or any interest or right made appurtenant thereto, or the service of any notice to withhold proceeds of the Loan and the continued maintenance of said claim, lien or notice to withhold for a period of twenty (20) days without discharge or satisfaction thereof or provision therefore (including, without limitation, the posting of bonds) satisfactory to the Housing Authority.

(j) Condemnation. The condemnation, seizure, or appropriation of all or the substantial part of the Development, except that condemnation by the City or Housing Authority shall cause the Loan to accelerate but shall not be a Default.

(k) Unauthorized Transfer. Any Transfer other than as permitted by Article 5.

(l) Representation or Warranty Incorrect. If any representation or warranty contained in this Agreement, or in any application, financial statement, certificate, or report submitted to the Housing Authority in connection with any of the Loan Documents, or in connection with any request for disbursement of Loan Proceeds proves to have been false or misleading in any material adverse respect when made.

Section 7.2 Remedies. The occurrence of any Default hereunder following the expiration of all applicable notice and cure periods will, either at the option of the Housing Authority or automatically where so specified, relieve the Housing Authority of any obligation to make or continue the Loan and shall give the Housing Authority the right to proceed with any and all remedies available to it under law or equity, including but not limited to the following:

(a) Acceleration of Note. The Housing Authority shall have the right to cause all indebtedness of the Borrower to the Housing Authority under this Agreement and the Note, together with any accrued interest thereon, to become immediately due and payable. The Borrower waives all right to presentment, demand, protest or notice of protest or dishonor. The Housing Authority may proceed to enforce payment of the indebtedness and to exercise any or all rights afforded to the Housing Authority as a creditor and secured party under the law including the Uniform Commercial Code, including foreclosure under the Deed of Trust. Borrower shall be liable to pay Housing Authority on demand all reasonable expenses, costs and fees (including, without limitation, reasonable attorney’s fees and expenses) paid or incurred by the Housing Authority in connection with the collection of the Loan and the preservation, maintenance, protection, sale or other disposition of the security given for the Loan.

(b) Specific Performance. The Housing Authority shall have the right to mandamus or other suit, action or proceeding at law or in equity to require Borrower to perform its obligations and covenants under the Loan Documents or to enjoin acts on things which may be unlawful or in violation of the provisions of the Loan Documents.

(c) Right to Cure at Borrower’s Expense. The Housing Authority shall have the right (but not the obligation) to cure any monetary default by Borrower under a loan other than the Loan. The Borrower agrees to reimburse the Housing Authority for any funds advanced by the Housing Authority Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

to cure a monetary default by Borrower upon demand therefore, together with interest thereon at the lesser of the maximum rate permitted by law or ten percent (10%) per annum from the date of expenditure until the date of reimbursement.

Section 7.3 Right of Contest. Borrower shall have the right to contest in good faith any claim demand, levy, or assessment the assertion of which would constitute a Default hereunder. Any such contest shall be prosecuted diligently and in a manner unprejudicial to the Housing Authority or the rights of the Housing Authority hereunder.

Section 7.4 Remedies Cumulative. Subject to the non-recourse provisions contained in the Note and this Agreement, no right, power, or remedy given to the Housing Authority by the terms of this Agreement or the Loan Documents is intended to be exclusive of any other right, power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to every other right, power, or remedy given to the Housing Authority by the terms of any such instrument, or by any statute or otherwise against Borrower and any other person. Neither the failure nor any delay on the part of the Housing Authority to exercise any such rights and remedies shall operate as a waiver thereof, nor shall any single or partial exercise by the Housing Authority of any such right or remedy preclude any other or further exercise of such right or remedy, or any other right or remedy.

ARTICLE 8

GENERAL PROVISIONS

Section 8.1 Relationship of Parties. Nothing contained in this Agreement shall be interpreted or understood by any of the Parties, or by any third persons, as creating the relationship of employer and employee, principal and agent, limited or general partnership, or joint venture between the Housing Authority and Borrower or its agents, employees or contractors, and Borrower shall at all times be deemed an independent contractor and shall be wholly responsible for the manner in which it or its agents, or both, perform the services required of it by the terms of this Agreement. Borrower has and retains the right to exercise full control of employment, direction, compensation, and discharge of all persons assisting in the performance of services under the Agreement. In regards to construction of the Improvements, and operation of the Development, Borrower shall be solely responsible for all matters relating to payment of its employees, including compliance with Social Security, withholding, and all other laws and regulations governing such matters, and shall include requirements in each contract that contractors shall be solely responsible for similar matters relating to their employees.

Borrower shall be solely responsible for its own acts and those of its agents and employees.

Section 8.2 No Claims. Nothing contained in this Agreement shall create or justify any claim against the Housing Authority by any person that Borrower may have employed or with whom Borrower may have contracted relative to the purchase of materials, supplies or equipment, or the furnishing or the performance of any work or services with respect to the construction of the Improvements, or the operation of the Development, and Borrower shall include similar requirements in any contracts entered into for the construction of the Improvements, or the operation of the Development.

Section 8.3 Amendments. No alteration or variation of the terms of this Agreement shall be valid unless made in writing by the Parties.

Section 8.4 Indemnification. Borrower shall indemnify, defend (with counsel reasonably acceptable to the Housing Authority) and hold harmless City, Housing Authority, their respective governing board members, officers, employees, agents, volunteers, successors and assigns harmless Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

from and against, and shall pay on demand, any and all losses, liabilities, damages, costs, claims, demands, penalties, fines, orders, judgments, injunctive or other relief, expenses and charges (including reasonable attorneys’ fees) all claims made by any third parties against it arising directly or indirectly in any manner in connection with the Project Site and Property, or the development, construction, marketing and operation of the Development, except to the extent such claim arises from the gross negligence or willful misconduct of City or Housing Authority, their members, board- members, officers, employees, agents, successors and assigns. The provision of this Section 8.4 shall survive the making and repayment or forgiveness of the Loan, the expiration of the Term, the Reconveyance of the Deed of Trust, and any foreclosure proceeding, foreclosure sale, or delivery of a deed in lieu of foreclosure.

Section 8.5 Non-Liability of Officials, Employees and Agents. No member, official, employee or agent of the City or Housing Authority shall be personally liable to Borrower in the event of any default or breach by the City or Housing Authority or for any amount which may become due to Borrower or its successor or on any obligation under the terms of this Agreement.

Section 8.6 No Third Party Beneficiaries. There shall be no third party beneficiaries to this Agreement.

Section 8.7 Notices, Demands and Communications. Formal notices, demands, and communications between the Parties shall be sufficiently given if and shall not be deemed given unless dispatched by registered, certified or electronic mail, postage prepaid return receipt requested, or delivered by express delivery service, return receipt requested, or delivered personally, to the principal office of the Parties as follows:

Agency: Housing Authority of the City of Pittsburg
65 Civic Avenue
Pittsburg, CA 94565
Attn: Darin Gale, Executive Director

Borrower: c/o Hope Solutions
399 Taylor Boulevard
Pleasant Hill, CA 94523
Attn: Deanne Pearn, CEO

Such written notices, demands and communications may be sent in the same manner to such other addresses as the affected party may from time to time designate by mail as provided in this section.

Receipt shall be deemed to have occurred on the date shown on a written receipt as the date of delivery or refusal of delivery (or attempted delivery if undeliverable). Copies of notice, sent to Borrower shall also be sent to any limited partner of Borrower that provides its address pursuant to this Section

8.7. Section 8.8 Applicable Law. This Agreement shall in all respects be construed and enforced in accordance with laws of the State of California. Borrower agrees that any controversy arising under or in relation to this Agreement or any other Loan Document shall be litigated exclusively in courts having jurisdiction in which the Property is located.

Section 8.9 Housing Authority Status. Borrower recognizes and agrees that the Housing Authority is not a commercial lending institution, but a public agency exercising its authority to protect the public health, safety and welfare. Any duties or obligations which a commercial lending institution Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

may have to Borrower shall not apply to this transaction except as set forth herein and in the Loan Documents.

Section 8.10 Parties Bound. Except as otherwise limited herein, the provisions of this Agreement shall be binding upon and inure to the benefit of the Parties and their heirs, executors, administrators, legal representatives, successors, and assigns. This Agreement is intended to run with the land and shall bind Borrower and its successors and assigns in the Property and the Development for the entire Term, and the benefit hereof shall inure to the benefit of the Housing Authority and its successors and assigns.

Section 8.11 Attorneys’ Fees. If any lawsuit is commenced to enforce any of the terms of this Agreement, the prevailing Party will have the right to recover its reasonable attorneys’ fees and costs of suit from the other Party.

Section 8.12 Severability. If any term of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the Parties have been materially altered or abridged by such invalidation, voiding or unenforceability.

Section 8.13 Force Majeure. In addition to specific provisions of this Agreement, performance by either Party shall not be deemed to be in default where delays or defaults are due to war; insurrection; strikes; lock-outs; riots; floods; earthquakes; fire; quarantine restrictions; freight embargoes; lack of transportation; or court order; or any other similar causes outside the control of either Party (other than lack of funds of Borrower or Borrower’s inability to finance the construction of the Development) beyond the control or without the fault of the Party claiming an extension of time to perform. An extension of time for any cause will be deemed granted if notice by the Party claiming such extension is sent to the other within ten (10) days from the commencement of the cause and such extension of time is not rejected in writing by the other Party within ten (10) days of receipt of the notice. In no event shall the Housing Authority be required to agree to cumulative delays in excess of one hundred eighty (180) days.

Section 8.14 Housing Authority Approval. Whenever this Agreement calls for Housing Authority approval, consent, or waiver, the written approval, consent, or waiver of the Executive Director or his or her designee shall constitute the approval, consent, or waiver of the Housing Authority, without further authorization required from the Governing Board of the Housing Authority.

The Housing Authority hereby authorizes the Executive Director or his or her designee to deliver such approvals or consents as are required by this Agreement, or to waive requirements under this Agreement, on behalf of the Housing Authority. The Executive Director or his or her designee is also hereby authorized to approve, on behalf of the Housing Authority, request by Borrower for reasonable extensions of time deadlines set forth in this Agreement.

Section 8.15 Waivers. Any waiver by the Housing Authority of any obligation or condition in this Agreement must be in writing. No waiver will be implied from any delay or failures by the Housing Authority to take action on any breach or default of Borrower or to pursue any remedy allowed under this Agreement or applicable law. Any extension of time granted to Borrower to perform any obligation under this Agreement shall not operate as a waiver of release from any of its obligations under this Agreement. Consent by the Housing Authority to any act or omission by Borrower shall not be construed to be consent to any other or subsequent act or omission or to waive the requirement for the Housing Authority’s written consent to future waivers.

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Section 8.16 Title of Parts and Sections. Any titles of the sections or subsections of this Agreement are inserted for convenience of reference only and shall be disregarded in interpreting any part of the Agreement’s provisions.

Section 8.17 Entire Understanding of the Parties. This Agreement and the Loan Documents constitute the entire understanding and agreement of the Parties with respect to the Loan.

Section 8.18 Multiple Originals; Counterpart. This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts.

SIGNATURES ON FOLLOWING PAGE

Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

IN WITNESS WHEREOF, this Agreement has been entered into by the undersigned as of the date first above written.

AGENCY:

THE HOUSING AUTHORITY OF THE CITY
OF PITTSBURG, a public body, corporate and
politic

By:_________________________________
Darin Gale,
Executive Director

APPROVED AS TO FORM:

By:__________________________________
Donna Mooney,
Housing Authority Attorney

BORROWER:

Village of Hope – Pittsburg, LLC,
a California limited liability company

By: Contra Costa Interfaith Transitional Housing, Inc. dba Hope Solutions, a California nonprofit public benefit corporation,
its sole member/manager

By: _____________________________
Deanne Pearn,
Chief Executive Officer

Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

EXHIBIT A

PROPERTY
The land referred to in this Report is situated in the County of Contra Costa, City of Pittsburg, State of California, and is described as follows:

BEING A PORTION OF THE WEST 1/2 OF THE NORTHWEST 1/4 OF SECTION 29 TOWNSHIP 2 NORTH, RANGE 1 EAST, MOUNT DIABLO BASE AND MERIDIAN AND A SUBDIVISION OF PARCEL A AS SHOWN ON PARCEL MAP WAIVER PMW 88-01 FILED IN BOOK 14198, AT PAGE 255, CONTRA COSTA

COUNTY RECORDS
AND DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT LYING ON THE EASTERLY RIGHT OF WAY LINE OF KIRKER PASS ROAD,

SAID POINT ALSO BEING THE MOST NORTHWESTERLY CORNER OF THAT CERTAIN PARCEL OF LAND DESCRIBED IN A QUITCLAIM DEED DATED FEBRUARY 18, 1987 FROM NORTHERN

CALIFORNIA DISTRICT CHURCH OF THE NAZARENE TO FIRST CHURCH OF THE NAZARENE OF PITTSBURG, FILED ON FEBRUARY 18, 1987, BOOK 13455 OR PAGE 24; THENCE FROM SAID POINT OF BEGINNING, LEAVING SAID RIGHT OF WAY LINE, NORTH 81°27'07" EAST, A DISTANCE OF 59.39 FEET ALONG THE NORTHERLY BOUNDARY LINE OF SAID PARCEL A;

THENCE LEAVING SAID NORTHERLY BOUNDARY LINE FROM A RADIAL LINE WHICH BEARS NORTH 89°51'01" WEST, ALONG A NON-TANGENT CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF 70.00 FEET, SOUTHEASTERLY 83.52 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 68°21'44";
THENCE ALONG A REVERSE CURVE CONCAVE TO THE SOUTHWEST, HAVING A RADIUS OF 20.00 FEET, SOUTHEASTERLY 27.36 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 78°23'17";
THENCE SOUTH 10°10'32" WEST, A DISTANCE OF 25.46 FEET;
THENCE SOUTH 21°10'57" EAST, A DISTANCE OF 144.00 FEET; THENCE SOUTH 26°22'22" EAST, A DISTANCE OF 30.83 FEET TO A POINT ON THE SOUTH LINE OF SAID PARCEL A;
THENCE ALONG SAID SOUTH LINE, SOUTH 63°37'38" WEST, A DISTANCE OF 155.92 FEET TO A

POINT ON THE EASTERLY RIGHT OF WAY LINE OF KIRKER PASS ROAD, SAID POINT ALSO BEING THE SOUTHWESTERLY CORNER OF SAID PARCEL A;
THENCE FROM A RADIAL LINE WHICH BEARS SOUTH 77°03’15” WEST, ALONG A NON -TANGENT CURVE CONCAVE TO THE EAST, HAVING A RADIUS OF 1440.00 FEET, NORTHERLY 337.43 FEET

ALONG SAID CURVE AND EASTERLY RIGHT OF WAY LINE OF KIRKER PASS ROAD, THROUGH A CENTRAL ANGLE OF 13°25’34” TO
THE POINT OF BEGINNING.

PER PARCEL MAP WAIVER, PARCEL 1, PMW 25-03, RECORDED NOVEMBER 14, 2025, INSTRUMENT NO. 2025- 0127999
APN: 089-060-009
Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

Village of Hope- Pittsburg

SOURCES AND USES OF FUNDS
5/22/2026 Res Units 15 One Bed 8
Office/Aux Unit 1 Two Bed 7
Total Units 16
SOURCES of FUNDS TOTAL Acq./Predev. Construction Permanent % of Total Per Unit Assumptions TERMS City of Pittsburg 500,000$ -$ 500, 000$ 4. 28% 31,250$ C ommitted Contra Costa County Measure X Funds (23-24) 1,770,958$ -$ 1, 770,958$ -$ 15. 15% 110,685$ C ommitted HOME Funds (24-25) 1,496,343$ -$ 1, 496,343$ -$ 12. 80% 93,521$ C ommitted Bezos Day 1 Family Fund 2,000,000$ -$ 2, 000,000$ -$ 17. 11% 125,000$ C ommitted Hope Solutions Capital Campaign 3,217,290$ 651,156$ 1, 977,137$ 769, 297$ 27. 52% 201,081$ C ommitted Foundations - LDS 256,773$ -$ 256, 773$ 2. 20% -$ C ommitted Behavioural Health Funding CCHealth 2,250,000$ 2,131,550$ 19. 24% Applied John Muir Health 200,000$ 200,000$ 1. 71% Committed TOTAL SOURCES 11,691,364$ 651,156$ 10, 332,761$ 769, 297$ 100. 00% 561,537$ 11, 753,214$ Surplus/(Deficit) 0 0 (0) 0.00
USES of FUNDS TOTAL Acq./Predev. Construction Permanent Basis Eligible Cost/Unit Cost/SqFt Assumptions Comments/Notes LAND & IMPROVEMENTS:

Land Cost -$ -$ -$ -$ -$ -$ -$
Lot Split 46,429$ 46,429$ -$ -$ -$ 2, 902$ 5$ Demolition -$ -$ -$ -$ -$ -$ -$
Environmental Remediation -$ -$ -$ -$ -$ -$ -$
Site Maintenance (i.e. Security, Clean-Up) -$ -$ -$ -$ -$ -$ -$ Site Value Beyond Cost -$ -$ -$ -$ -$ -$ -$
Title & Escrow - Land Acquisition 15,000$ 15,000$ -$ -$ -$ 938$ 2$ Legal - Land Acquisition 10,000$ 10,000$ -$ -$ -$ 625$ 1$ Total Land & Improvements 71,429$ 71,429$ -$ -$ -$ 4, 464$ 7$ DESIGN & CONSULTING:

Architect $130,000 97,500$ 32, 500$ -$ 130, 000$ 8, 125$ 14$ Landscape Design 31,543$ 31,543$
Joint Trench Utility Design 18,000$ 18,000$ -$ -$ 18, 000$ 1, 125$ 2$ Construction Estimating/Management Services 80,000$ 20,000$ 60, 000$ -$ 80, 000$ 5, 000$ 8$ Engineering Reports (i.e. Topo, Noise, Soils, Traffic, Biology nesting, Archeology, Geotech, pothole) 77,313$ 77,313$ -$ -$ 77,313$ 4,832$ 8$ Civil Engineer 120,000$ 120,000$
MEP 20,650$ 20,650$
Environmental - NEPA 31,543$ 31,543$ -$ -$ 31, 543$ 1, 971$ 3$ Testing & Inspection 40,000$ -$ 40, 000$ -$ 40, 000$ 2, 500$ 4$ Total Design & Consulting $549,048 416,548$ 132, 500$ -$ 376, 855$ 23, 553$ 39$ CONSTRUCTION:

Off-Site Improvements -$ -$ -$ -$ -$ -$ -$
General Requirements 721,506$ -$ 721, 506$ -$ 721, 506$ 45, 094$ 75$ 0% Fencing 90,880$ 90,880$ 90, 880$ 5, 680$ 9$ On-Site Improvements 310,560$ -$ 310, 560$ -$ 232, 920$ 19, 410$ 32$ Grading & Paving 576,875$ 576,875$ 576, 875$ Utilities & Underground 995,520$ 995,520$ 995, 520$ Special Construction 312,336$ -$ 312, 336$ 234, 252$ 19, 521$ 32$ Pit Set & Foundations 1,249,649$ 1,249,649$ -$ 1, 249,649$ 78, 103$ 130$ Setter 432,272$ 432,272$ 432, 272$ Noise Mitigation (Doors And Windows) 41,390$ 41,390$ 31, 043$ Joint Trench Construction Cost 588,323$ 588,323$ 588, 323$ 36, 770$ 61$ Landscape Installation 229,055$ 229,055$ 171, 791$ 14, 316$ 24$ Gutters and Downspouts 65,927$ 65,927$ 65, 927$ GC Contingency 223,528$ -$ 223, 528$ 223, 528$ 13, 971$ 23$ 4% Contractor Overhead & Profit $ 232,470 -$ 232, 470$ -$ 174, 353$ 14, 529$ 24$ Contractors Bond & Insurance 167,728$ -$ 167, 728$ -$ 167, 728$ 10, 483$ 17$ Sign Relocation & Striping 15,311$ 15,311$ 15, 311$ SWPPP 50,000$ 50,000$ 50, 000$ 3, 125$ 5$ Camera and Internet Installation 24,484$ 24,484$ PG&E 12,765$ 12,765$ 12, 765$ Pricing Escalation/Design Contingency 84,281$ -$ 84, 281$ -$ 84, 281$ 5, 268$ 9$ Unit Transportation 147,840$ -$ 147, 840$ Unit Construction/Manufactured Homes 1,762,891$ -$ 1, 762,891$ -$ 1, 249,649$ 110, 181$ 183$ Construction Contingency HS 505,491$ -$ 505, 491$ -$ 505, 491$ 31, 593$ 53$ 8. 00% Total Construction 8,841,082$ -$ 8, 841,082$ -$ 7, 874,064$ 408, 044$ 679$ INDIRECT COSTS:

Permits & Fees 643,792$ 64,379$ 579, 413$ 643, 792$ 40, 237$ 67$ $25, 000 Legal Fees - Constr. Loan Closing 35,000$ -$ 35, 000$ -$ 35, 000$ 2, 188$ 4$ Project Monitoring Platform 5,600$ 5,600$
Legal Fees - Perm. Loan Closing -$ -$ -$ -$ -$ -$ -$ Legal Fees - Organization -$ -$ -$ -$ -$ -$ -$
Furnishings 256,773$ 256,773$
Audit Fees 15,000$ -$ -$ 15, 000$ -$ 938$ 2$ Sponsor Administration -$ -$ 0
Developer Fee 754,297$ 754,297$ 7% Appraisal 1,950$ 1,950$ -$ -$ -$ 122$ 0$ Prevailing Wage Consultant 30,000$ 30,000$ Market Study -$ -$ -$ -$ -$ -$ -$
Rent/Up Marketing 50,000$ -$ 50, 000$ -$ -$ 3, 125$ 5$ 800 Reserves: -$ -$ -$ -$ -$ -$ -$
Marketing & Bond Reserves -$ -$ -$ -$ -$ -$
Capitalized Operating Reserve 225,000$ -$ 225, 000$ -$ 225, 000$ 14, 063$ 23$ Operating Reserve -$ -$ -$ -$ -$ -$
Partnership Management -$ -$ -$ -$ -$ -$ -$
Investor Services Fee Reserve -$ -$ -$ -$ -$ -$ -$ HUD MCI -$ -$ -$ -$ -$ -$ -$
Soft Costs Contingency 161,393$ 35,000$ 126, 393$ -$ 161, 393$ 10, 087$ 17$ 8% Total Indirect Costs 2,178,805$ 101,329$ 1, 308,179$ 769, 297$ 1, 065,185$ 70, 758$ 118$ FINANCE & CARRYING COSTS:

Liability/COC Insurance 51,000$ -$ 51, 000$ -$ 51, 000$ 3, 188$ 5$ 0. 6450% Real Estate Taxes -$ -$ -$ -$ -$ -$ -$
Predevelopment Loan Interest (includes land carry) -$ -$ -$ -$ -$ -$ -$ Costs of Issuance (Bonds) -$ -$ -$ -$ -$ -$ -$
Construction Loan Fees & Expenses -$ -$ -$ -$ -$ -$ -$ Construction Loan Interest -$ -$ -$ -$ -$ -$
Permanent Financing Fees & Expenses -$ -$ -$ -$ -$ -$ -$ Title & Escrow - Construction Loan -$ -$ -$ -$ -$ -$ -$ Title & Escrow - Permanent Loan 0$ -$ -$ 0$ 0$ 0$ 0$ Lender-Appraisal, Legal & Consulting (Inspections incl) -$ -$ -$ -$ -$ -$ -$ Total Finance & Carry Costs 51,000$ -$ 51, 000$ 0$ 51, 000$ 3, 188$ 5$ TAX CREDITS/SYNDICATION EXPENSES:

TCAC Application Fee -$ -$ -$ -$ -$ -$ -$
TCAC Reservation Fee -$ -$ -$ -$ -$ -$ -$
TCAC Performance Deposit -$ -$ -$ -$ -$ -$ -$
TCAC Performance Deposit Refund -$ -$ -$ -$ -$ -$ -$ TCAC Monitoring Fee -$ -$ -$ -$ -$ -$ -$
CDLAC Performance Deposit -$ -$ -$ -$ -$ -$ -$
CDLAC Performance Deposit Refund -$ -$ -$ -$ -$ -$ -$ Syndication Consultant -$ -$ -$ -$ -$ -$ -$
Syndication Legal Fees -$ -$ -$ -$ -$ -$ -$
Syndication-Investor Legal -$ -$ -$ -$ -$ -$ -$
Syndication Other: Bridge Loan Fees -$ -$ -$ -$ -$ -$ -$ Syndication Other: Bridge Loan/Dev Fee Interest -$ -$ -$ -$ -$ -$ Total TCAC/Syndication -$ -$ -$ -$ -$ -$ -$
TOTAL DEVELOPMENT EXPENSES 11,691,364$ 651,156$ 10, 332,761$ 769, 297$ 9, 367,104$ 510, 007$ 848$ Minimum 8% for HOME for Soft Costs
CFDs to City
Possible County Fees for Closing and recording
Orriginal was set at 5,000
Includes Bid Advertising
7% as Per HOME
From BBI Construction Budget
From BBI Construction Budget
From BBI Construction Budget
From BBI Construction Budget
From BBI Construction Budget
From BBI Construction Budget
Estimate from Rebuilding Green Broker
Minimum 8% for HOME hard cost construction
per NRSF, excl. contingency & FF&E
Estimate from Bay Alarm & Comcast for installation
From BBI Construction Budget
Included in BBI Line items below
Total for General Requirements from BBI Construction Budget BBI Budget for Fencing
From BBI Construction Budget
From BBI Construction Budget
From BBI Construction Budget
From BBI Construction Budget
From BBI Construction Budget
From BBI Construction Budget
5,500 for testing and inspection upon completion - quote from m Amounts updated on Contract Sheet 12.19.25
added 15,000 for testing and updated - 2,500 for nesting 120,000 orriginal
Ongoing Lease In Operating budget for lease payment
City Fees Only, Included in Civil Contracts

EXHIBIT B
Approved Development Budget
Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

EXHIBIT C
Recording Requested by
and when Recorded, return to:

Mail Tax Statements to:

Housing Authority of the City of Pittsburg
65 Civic Avenue
Pittsburg, California 94565
Attn: Executive Director

EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383
(SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE)

CERTIFICATE OF COMPLETION
Pursuant to Section 3.9 of the Loan Agreement (“Loan Agreement”) by and between the Housing Authority of the City of Pittsburg, a public body corporate and politic (“Housing Authority”), and Hope Solutions., a California non-profit organization (“Borrower”), the Housing Authority certifies that the Borrower has met its obligations under Article 3 of the Loan Agreement. This Certificate of Completion shall not constitute evidence of compliance with or satisfaction of any obligation of the Borrower to any holder of a deed of trust securing money loaned to finance the Development (as defined in the Loan Agreement) or any part thereof and shall not be deemed either a notice of completion under the California Civil Code or a certificate of occupancy.

Housing Authority of the City of Pittsburg,
By: _________________________________
Darin Gale, Executive Director
(Notarize signature and
attach legal description)
Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

EXHIBIT D

DEVELOPMENT FEES
Church of the Nazarene
15 Tiny Homes Preliminary Fee
Estimate Pittsburg, California

ITEM NO DESCRIPTION FEE TOTAL

1. ENGINEERING FEES

1. Plan Check - Single Parcel (MF) 4.5% of Const Cost $ 25,515.00

2. Inspection - Single Parcel (MF) 6% of Const Cost $ 34,020.00

3. Encroachment Permit Plan Review

4. Encroachment Permit Inspection

5. Grading Plan Review

3.5% of Const Cost

4.5% of Const Cost
Base on CY less than 1,499

N/A N/A
$ 1,439.00

6. Grading Inspection Base on CY less than 1,500 $ 1,880.00

7. Kirker Creek Mitigation Fee Provided by City 10/3/23 $ 38,877.00

8. Local Transportation Mitigation Fee $6,003 per dwelling unit (MF) $ 102,051.00

9. Regional Transportation Mitigation Fee $14,602 per dwelling unit (MF) $ 248,234.00

10. Water Facility Reserve Fee (Zone 2 Infill) 0.77 x $7,486 per dwelling unit (MF) $ 62,085.87

11. Sewer Facility Reserve Fee (All Other Sub-Basins) 0.77 x $2,859 per dwelling unit (MF) $ 37,424.31

12. Sewer Inspection Fee Provided by City 10/11/23 $ 1,000.00

13. Storm Drain CCTV Inspection Provided by City 10/11/23 $ 1,000.00

14. NPDES Plan Review Provided by City 10/3/23 $ 3,934.00

15. NPDES Inspection Deposit Provided by City 10/3/24 $ 15,000.00

16. In Lieu of Parkland Dedication Fee Provided by City 10/3/23 $ 150,953.00

17. GIS Fee Provided by City 10/3/24 $ 1,785.00
Subtotal $ 725,198

2. BUILDING PERMIT FEES

1. Building Permit Fee Accessory Dwelling Units $141 $ 2,397.00

2. Plumbing Fee $141 $ 2,397.00

3. Electrical Fee $141 $ 2,397.00

4. Mechanical Fee $141 $ 2,397.00

5. Building Plan Review Fee 100% of Permit Fee $ 2,397.00

6. Energy Plan Review Fee $83 $ 1,411.00

7. Fire Protection Collection Fee $67 $ 1,139.00

8. Fire District Facilities Fee (MF) $398 $ 6,766.00

9. Fire District Facilities Admin Fee (MF) $9 $ 153.00
Subtotal $ 21,454
Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

Notes

1. All Fees are per unit unless otherwise noted.

2. Consultant Fees are not included in this estimate.

3. Assumes 10 Units at 425 sf + 5 Units at 750 sf

ITEM NO DESCRIPTION FEE TOTAL

3. OTHER FEES

1. CCWD Facilities Reserve Charge

3" Meter

$ 93,136.00

2. Delta Diablo Sewer District Capital Facilities Charges (CFCC) $4,358 $ 74,086.00

3. Delta Diablo Sewer District Annexation Fees $156 $ 2,652.00

4. Delta Diablo Sewer District Plan Check Fees Flat Fee $250 $ 250.00

5. School Impact Fees (MF Attached)3 $4.08 / SF $ 38,760.00

Subtotal

$ 208,884

TOTAL AGENCY FEES $ 968,792

TOTAL FEES PER UNIT $ 56,987.78
Docusign Envelope ID: E530D1E5-65F7-8EC1-80EF-59DF17E78EC0

1 PROMISSORY NOTE
(Hope Solutions)

$500,000 Pittsburg, California
July 20, 2026

FOR VALUE RECEIVED, the undersigned, Village of Hope – Pittsburg, LLC, a California limited liability company (Borrower), promises to pay to the order of the Housing Authority of the City of Pittsburg, a public body corporate and politic (Lender), the sum of FIVE HUNDRED THOUSAND DOLLARS ($500,000) (Loan) or so much thereof as has been advanced, in lawful money of the United States.

1. Term. The term of the Loan shall be twenty (20) years (Term). Provided that the Borrower has continued to own and operate the Development, that the Borrower has complied with the terms and conditions of the Loan Documents, that there are no outstanding or uncured defaults, or no unapproved transfers, Two Hundred Fifty Thousand Dollars ($250,000) of the Loan will be forgiven on the tenth (10th) anniversary of the Loan Agreement.

Provided that the Borrower has continued to own and operate the Development, that the Borrower has complied with the terms and conditions of the Loan Documents, that there are no outstanding or uncured defaults, or no unapproved transfers, Two Hundred Fifty Thousand Dollars ($250,000) of the Loan will be forgiven on the twentieth (20th) anniversary of the Loan Agreement.

2. Interest. The rate of interest shall be zero percent (0%) per annum on the principal amount. In the event of a default, interest on the Loan shall accrue, commencing on the date of the default and continuing until such time as the Loan is repaid in full or the default is cured, at the default rate of the lesser of twelve percent (12%) compounded annually, or the highest rate permitted by law.

3. Maturity. At the conclusion of the Term (Maturity Date occurs on the twentieth (20th) anniversary of this Agreement or when the Loan is paid in full, whichever occurs first.

4. Security. This Note is secured by a Deed of Trust and Regulatory Agreement recorded in the official records of Contra Costa County (Deed of Trust).

The Borrower shall provide Lender, at Borrower's cost, a lender's title insurance policy insuring the Deed of Trust in the amount of this Note and in a form reasonably satisfactory to the Lender.

Docusign Envelope ID: A9C16EA2-DF97-887E-8140-D95306B94004

2 5. Source of Funds. The source of funds for the Loan to the Borrower from the Lender is the Housing Successor Agency funds overseen by the Housing Authority of the City of Pittsburg.

6. Reserved.

7. Default; Remedies.

(a) If default is made by Borrower in the Deed of Trust or the Regulatory Agreement (Regulatory Agreement), then, at the option of Lender, subject to the applicable cure periods, the entire indebtedness evidenced hereby shall become immediately due and payable. Failure to exercise any option granted to Lender hereunder shall not waive the right to exercise the same in the event of any subsequent default.

(b) If, after the times provided in subsection (a) the Borrower has not cured the breach, and Lender has not expressly waived its rights under this Note or the Deed of Trust, then the breach shall constitute a Default and Lender may do any one or more of the following: (i) accelerate the obligation to repay the loan made pursuant to this Note, which will include compounded interest and penalties allowed by law; or (ii) pursue any other remedies at law or in equity or any such other actions as shall be necessary or desirable so as to correct non-compliance with this Note.

(c) Any failure by Lender to pursue its legal and equitable remedies upon default shall not constitute a waiver of Lender's right to declare a default and, after applicable notice and expiration of applicable cure periods, exercise all of its rights under this Note.

8. Attorneys' Fees. In the event of any default under this Note, or in the event that any dispute arises relating to the interpretation, enforcement or performance of this Note, the Lender shall be entitled to collect from Borrower on demand all reasonable fees and expenses incurred in connection therewith, including but not limited to fees of attorneys, accountants, appraisers, environmental inspectors, consultants, expert witnesses, arbitrators, mediators and court reporters. Without limiting the generality of the foregoing, Borrower shall pay all such costs and expenses incurred in connection with: (a) arbitration or other alternative dispute resolution proceedings, trial court actions and appeals; (b) bankruptcy or other insolvency proceedings of Borrower, any guarantor or other party liable for any of the obligations of this Note or any party having any interest in any security for any of those obligations; (c) judicial or nonjudicial foreclosure on, or appointment of a receiver for, any property securing this Note; (d) post-judgment collection proceedings; (e) all claims, counterclaims, cross-claims and defenses asserted in any of the foregoing whether or not they arise out of or are related to this Note or any security for this Note; (f) all preparation for any of the foregoing; and (g) all settlement negotiations with respect to any of the foregoing.

Docusign Envelope ID: A9C16EA2-DF97-887E-8140-D95306B94004

3 9. No Assignment. The rights and obligations of the parties hereunder shall not be assignable, either voluntarily or by operation of law, without the written consent of the other party. In addition, this Note is non-negotiable and may not be sold, assigned, assumed, conveyed or transferred except with the prior written approval of the Housing Authority.

10. Notices, Demands and Communications. Formal notices, demands, and communications between the parties shall be sufficiently given if, and shall not be deemed given unless, dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered by express delivery service, return receipt requested, or personal delivery with a delivery receipt, as follows:

Lender:

Housing Authority of the City of Pittsburg
65 Civic Avenue
Pittsburg, CA 94565
Attn: Executive Director
Borrower:

c/o Hope Solutions
399 Taylor Boulevard
Pleasant Hill, CA 94523
Attn: Deanne Pearn

Such written notices, demands and communications may be sent in the same manner to such other addresses as the affected entity may from time to time designate as provided in this Section 11. Receipt shall be deemed to have occurred on the date shown on a written receipt as the date of delivery, refusal of delivery, or the date the notice was returned as undeliverable.

11. Miscellaneous.

(a) Every person or entity at any time liable for the payment of the indebtedness evidenced hereby waives presentment for payment, demand and notice of nonpayment of this Note. Every such person or entity further hereby consents to any extension of the time of payment hereof or other modification of the terms of payment of this Note, the release of all or any part of the security hereof or the release of any part liable for the payment of the indebtedness evidenced hereby at any time and from time to time at the request of anyone now or hereafter liable therefor. Any such extension or release may be made without notice to any of such persons or entities and without discharging their liability.

(b) The headings to the various sections have been inserted for convenience of reference only and do not define, limit, modify, or expand the express provisions of this Note.

(c) Time is of the essence under this Note and in the performance of every term, covenant and obligation contained herein.

Docusign Envelope ID: A9C16EA2-DF97-887E-8140-D95306B94004

4 (d) This Note is made with reference to and is to be construed in accordance with the laws of the State of California.

(e) This Note shall be nonrecourse to Borrower and its members.

Village of Hope – Pittsburg, LLC,
a California limited liability company

By: Contra Costa Interfaith Transitional Housing, Inc. dba Hope Solutions, a California nonprofit public benefit corporation, its sole member/manager

By: _____________________________
Deanne Pearn,
Chief Executive Officer

Docusign Envelope ID: A9C16EA2-DF97-887E-8140-D95306B94004

015.001/635042
RECORDING REQUESTED BY:

HOUSING AUTHORITY OF THE CITY OF PITTSBURG

When Recorded Mail To:

Housing Authority of the City of Pittsburg
City Clerk Services
65 Civic Avenue
Pittsburg, CA 94565

Fee Waived per GC 27383

Space above this line for Recorder’s use

REGULATORY AGREEMENT AND

DECLARATION OF RESTRICTIVE COVENANTS

Owner: Village of Hope – Pittsburg, LLC
Property Address: 5305 Kirker Pass Road
Pittsburg, California, 94565

APN: 089-060-009

Name of Development: Village of Hope – Transition Age
Youth Housing by Hope Solutions

This Regulatory Agreement and Declaration of Restrictive Covenants (this "Agreement”) is entered into effective as of July 20, 2026 (“Effective Date”) by and between the Housing Authority of the City of Pittsburg, a public body, corporate and politic (“Housing Authority”) and VILLAGE OF HOPE – PITTSBURG, LLC, a California limited liability company, a California limited liability company (“Developer”). Housing Authority and Developer are hereinafter collectively referred to as the “Parties.”
Recitals
A. Developer has entered into a ground lease with the Pittsburg Church of the Nazarene, the owner of certain real property, with the situs address of 5305 Kirker Pass Road, known as a portion of Assessor’s Parcel Number 089-060-009 (“Property Owner”), which is located in Pittsburg, California and more particularly described in Exhibit A attached hereto and incorporated herein by reference (“Property”).

B. Developer must obtain from the Property Owner written consent allowing the recording of any encumbrances related to the City’s Community Facilities District, against the Property ( “Property Docusign Envelope ID: BB12E1BD-5301-8606-831D-FA9BB3ED347A

015.001/635042
Owner Written Consent”). The Deed of Trust and this Agreement will be recorded against Borrower’s leasehold interest in the Property.

C. Developer proposes to construct on the Property, transition age youth (TAY) housing consisting of fifteen (15) residential units and ancillary facilities for individuals and families who are 50% of area median income (“AMI”) or less, some of whom are at risk of being homeless or may even have been homeless (“Development”).

D. The Housing Authority proposes to provide, upon Housing Authority approval, a $500,000, 0% interest, forgivable loan, to pay for certain City fees and permits (“Assistance”).

E. In exchange for the Assistance, Developer agrees to the following: 1) the proposed Development will be designed to support transition age youth; 2) this Agreement will be recorded against Borrower’s leasehold interest in the Property, restricting the Property as TAY housing units for individuals and families who are 50% of AMI or less; and 3) provide wraparound services to assist the residents of the Development.

F. The Parties have agreed to enter into and record this Agreement in order to satisfy the requirements described in the foregoing Recitals. The purpose of this Agreement is to regulate and restrict the occupancy and rents of the Properties’ Restricted Units (defined below) for the benefit of the occupants. The covenants in this Agreement are intended to run with the land and be binding on Developer, Property Owner, and their successors and assigns for the full term of this Agreement.

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the Parties hereby agree as follows:

1. Definitions. The following terms have the meanings set forth in this Section wherever used in this Agreement or the attached exhibits.
“Applicable Income Level” means the annual gross income level specified by the California Department of Housing and Community Development (“HCD”), also referred to as the “State Income Limits”, and annually updated on or around April.
“Area Median Income” or “AMI” means the area median income for Contra Costa County, California, adjusted for household size, published periodically by the HCD in Section 6932 of Title 25 of the California Code of Regulations (“Regulations”) or successor provision published. "Eligible Household" means a household whose gross income does not exceed the Applicable Income Level.
"Qualifying Rent" means a monthly rent which does not exceed 50% of the Applicable Income Levels as outlined in Section 3.1, .
“Tenant” means person or persons leasing one of the fifteen (15) units in the Development.

2. Assistance. Housing Authority, using Successor Agency for the Redevelopment Agency of the Agency of Pittsburg funds, shall provide financial assistance for the Development in an amount not to exceed $500,000, 0% interest, forgivable loan to pay for certain City fees and permits. Any remaining funds shall be allocated towards the completion of the construction project.

Docusign Envelope ID: BB12E1BD-5301-8606-831D-FA9BB3ED347A

015.001/635042

ITEM NO DESCRIPTION FEE TOTAL

2. ENGINEERING FEES

1. Plan Check - Single Parcel (MF) 4.5% of Const Cost $ 25,515.00

2. Inspection - Single Parcel (MF) 6% of Const Cost $ 34,020.00

3. Encroachment Permit Plan Review

4. Encroachment Permit Inspection

5. Grading Plan Review

3.5% of Const Cost

4.5% of Const Cost
Base on CY less than 1,499
N/A
N/A
$ 1,439.00

6. Grading Inspection Base on CY less than 1,500 $ 1,880.00

7. Kirker Creek Mitigation Fee Provided by City 10/3/23 $ 38,877.00

8. Local Transportation Mitigation Fee $6,003 per dwelling unit (MF) $ 102,051.00

9. Regional Transportation Mitigation Fee $14,602 per dwelling unit (MF) $ 248,234.00

10. Water Facility Reserve Fee (Zone 2 Infill) 0.77 x $7,486 per dwelling unit (MF) $ 62,085.87

11. Sewer Facility Reserve Fee (All Other Sub-Basins) 0.77 x $2,859 per dwelling unit (MF) $ 37,424.31

12. Sewer Inspection Fee Provided by City 10/11/23 $ 1,000.00

13. Storm Drain CCTV Inspection Provided by City 10/11/23 $ 1,000.00

14. NPDES Plan Review Provided by City 10/3/23 $ 3,934.00

15. NPDES Inspection Deposit Provided by City 10/3/24 $ 15,000.00

16. In Lieu of Parkland Dedication Fee Provided by City 10/3/23 $ 150,953.00

17. GIS Fee Provided by City 10/3/24 $ 1,785.00

Subtotal

$ 725,198

3. BUILDING PERMIT FEES

1. Building Permit Fee

Accessory Dwelling Units $141

$ 2,397.00

2. Plumbing Fee $141 $ 2,397.00

3. Electrical Fee $141 $ 2,397.00

4. Mechanical Fee $141 $ 2,397.00

5. Building Plan Review Fee 100% of Permit Fee $ 2,397.00

6. Energy Plan Review Fee $83 $ 1,411.00

7. Fire Protection Collection Fee $67 $ 1,139.00

8. Fire District Facilities Fee (MF) $398 $ 6,766.00

9. Fire District Facilities Admin Fee (MF) $9 $ 153.00

Subtotal

$ 21,454
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ITEM NO DESCRIPTION FEE TOTAL

4. OTHER FEES

1. CCWD Facilities Reserve Charge

3" Meter

$ 93,136.00

2. Delta Diablo Sewer District Capital Facilities Charges (CFCC) $4,358 $ 74,086.00

3. Delta Diablo Sewer District Annexation Fees $156 $ 2,652.00

4. Delta Diablo Sewer District Plan Check Fees Flat Fee $250 $ 250.00

5. School Impact Fees (MF Attached)3 $4.08 / SF $ 38,760.00

Subtotal

$ 208,884

TOTAL AGENCY FEES $ 968,792

TOTAL FEES PER UNIT $ 56,987.78

Notes

1. All Fees are per unit unless otherwise noted.

2. Consultant Fees are not included in this estimate.

3. Assumes 10 Units at 425 sf + 5 Units at 750 sf

3. Use and Affordability Restrictions. Developer represents and warrants that it has not entered into any agreement that would restrict or compromise its ability to comply with the occupancy and affordability restrictions set forth in this Agreement, and Developer covenants that it shall not enter into any agreement that is inconsistent with such restrictions.

3.1 Affordability Requirements. Developer shall rent the fifteen (15) units to individuals or families who are 50% of AMI or less. Owner shall ensure that language is contained in all leases and contracts with tenants that prohibits subleasing of any residential unit.

3.2 Rents. Rent charged to, and paid by, a tenant shall be not more than the Qualifying Rent.

3.3 Non-Discrimination; Compliance with Fair Housing Laws. Developer shall not discriminate against persons or groups of persons on account of race, color, religion, creed, sex, sexual orientation, marital status, familial status, ancestry or national origin in the lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Development, nor shall Developer or any person claiming under or through Developer establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the Development. Developer shall each ensure that language prohibiting such discrimination shall be included in all deeds, leases and contracts executed by Developer or its successors and assigns with respect to the Development and Property. Developer shall comply with state and federal fair housing laws in the marketing and rental of the secondary dwelling units in the Property.

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4. Term of Agreement.

4.1 Term of Restrictions. This Agreement shall remain in effect for fifty-five (55) years from the date that the Project receives its Certificate of Occupancy, enabling the leasing of the affordable units.

4.2 Effectiveness Succeeds Conveyance of Property. This Agreement shall remain effective and fully binding for the full term hereof regardless of any sale, assignment, transfer, or conveyance of the Development or the Property, unless this Agreement is terminated earlier by Housing Authority in a recorded writing.

4.3 Reconveyance. Upon the termination of this Agreement, the Parties agree to execute and record appropriate instruments to release and discharge the terms of this Agreement.

5. Community Facilities Districts. Developer agrees to annex into certain CFDs and pay its fair share of any levies imposed and acknowledges that certain CFD’s increase annually:

5.1. Landscape and Lighting. Developer agrees that the Development and Property will be subject to the City’s existing Lighting and Landscaping District, as established pursuant to City Resolution No. 88-7324. Developer shall take the steps necessary, as determined by the City Manager and City Attorney, to annex the Property into the City’s existing Lighting and Landscaping District prior to issuance of any permits for the Project.

5.2 Public Safety. Developer agrees to cooperate with City’s efforts to annex the Development and Property into the City of Pittsburg Community Facilities District No. 2005- 01, as adopted pursuant to Resolution No. 05-10342 (the “Public Safety Services District”) and Ordinance 05-1246 in order to fund public services made necessary by the Development. Developer shall take the steps necessary, as determined by the City Manager and City Attorney, to annex the Property into the City’s Public Safety Services District prior to issuance of any permits for the Development.

5.3 Fire District. Developer agrees to cooperate with City’s efforts to annex the Development and Property into the Contra Costa County Fire Protection Community Facilities District 2017-1, as established by Resolutions 17-13298 and 17-13311 and Ordinance 17- 1428 (the “Fire Services District”) in order to fund fire services made necessary by the Development. Developer shall take the steps necessary, as determined by the City Manager and City Attorney, to annex the Property into the City’s Fire Services District prior to issuance of any permits for the Development.

5.4 Park Maintenance. Developer agrees to cooperate with City’s efforts to annex the Development and Property into the Park Maintenance Community Facilities District 2007- 1, as established by Resolutions 07-10840 and 07-10841 and Ordinance 07-1283 (the “Park Maintenance District”) in order to fund park maintenance services made necessary by the Development. Developer shall take the steps necessary, as determined by the City Manager and City Attorney, to annex the Property into the Park Maintenance District prior to issuance of any permits for the Development.

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6. Binding Upon Successors; Covenants to Run with the Land. Developer hereby subjects its interest in the Development to the covenants and restrictions set forth in this Agreement. The Housing Authority and Developer hereby declare their express intent that the covenants and restrictions set forth herein shall be deemed covenants running with the land and shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors in interest, transferees, and assigns of Developer and Housing Authority, regardless of any sale, assignment, conveyance or transfer of the Development, Property, or any part thereof or interest therein. Each reference in this Agreement to a specifically named party shall be deemed to mean a reference to the successor of each such Party. Any successor-in-interest to Developer, including without limitation any purchaser, transferee or lessee of the Property shall be subject to all of the duties and obligations imposed hereby for the full term of this Agreement. Each and every contract, deed, ground lease or other instrument affecting or conveying the Property or any part thereof, shall conclusively be held to have been executed, delivered and accepted subject to the covenants, restrictions, duties and obligations set forth herein, regardless of whether such covenants, restrictions, duties and obligations are set forth in such contract, deed, ground lease or other instrument. If any such contract, deed, ground lease or other instrument has been executed prior to the date hereof, Developer hereby covenants to obtain and deliver to Housing Authority an instrument in recordable form signed by the Parties and Property Owner to such contract, deed, ground lease or other instrument pursuant to which such parties acknowledge and accept this Agreement and agree to be bound hereby.

Developer agrees for itself and for its successors that in the event that a court of competent jurisdiction determines that the covenants herein do not run with the land, such covenants shall be enforced as equitable servitudes against the Property in favor of Housing Authority.

7. Property Management; Repair and Maintenance; Marketing.

7.1 Management Responsibilities. Developer shall be responsible for all management functions for the Development, including without limitation the selection of tenants, certification and recertification of household income and eligibility, evictions, and collection of rents and deposits. Except as Housing Authority may otherwise agree in writing, Housing Authority shall have no responsibility for management or maintenance of the Development. The contracting of management services to a management entity shall not relieve Developer of its primary responsibility for proper performance of management duties.

8. Recordation; No Subordination. This Agreement shall be recorded in the Official Records of Contra Costa County. Developer hereby represents, warrants and covenants that with the exception of a construction loan, easements and restrictions of record, absent the written consent of the Housing Authority, this Agreement shall not be subordinated in priority to any lien (other than those pertaining to taxes or assessments), encumbrance, or other interest in the Property other than the Ground Lease. If at the time this Agreement is recorded, any interest, lien, or encumbrance has been recorded against the Property in position superior to this Agreement, upon the request of Housing Authority, Developer and Property Owner hereby covenant and agree to promptly undertake all action necessary to clear such matter from title or to subordinate such interest to this Agreement consistent with the intent of and in accordance with this Section, and to provide such evidence thereof as the Housing Authority may reasonably request.

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9. Default and Remedies.

9.1 Events of Default. Developer’s failure to cure any default in performance of Developer’s obligations under this Agreement within thirty (30) days following Housing Authority’s delivery of a notice of default shall constitute an Event of Default hereunder and shall entitle the Housing Authority to proceed with any of the remedies described below.

Notwithstanding the foregoing, if the default is such that it is not reasonably capable of being cured within thirty (30) days, an Event of Default shall not arise hereunder if Developer commences to cure the default within 30 days and thereafter prosecutes the curing of such default to completion with due diligence and in good faith, but in no event later than ninety (90) days after receipt of Agency Housing Authority notice of default or such longer period as Housing Authority may agree to in writing.
(a) Bring an action for equitable relief seeking the specific performance of the terms and conditions of this Agreement, and/or enjoining, abating, or preventing any violation of such terms and conditions, and/or seeking declaratory relief; (b) For violations of obligations with respect to rents, impose as liquidated damages a charge in an amount equal to the actual amount collected in excess of the rent paid by the tenant;
(c) Pursue any other remedy allowed at law or in equity.

9.2 Remedies Cumulative. Each of the remedies provided herein is cumulative and not exclusive. The Housing Authority may exercise from time to time any rights and remedies available to it under applicable law or in equity, in addition to, and not in lieu of, any rights and remedies expressly provided in this Agreement.

10. Indemnification. Developer shall defend (with counsel approved by Housing Authority), indemnify and hold the City and Housing Authority and its officials, officers, directors, employees, and agents (collectively, the "Indemnified Parties") harmless from and against any and all losses, damages, liabilities, claims, demands, judgments, actions, court costs, and legal or other expenses (including reasonable attorneys' fees) arising from or in connection with or in any way related to: (i) Developer’s performance or failure to perform any obligation required by this Agreement; or (ii) any act or omission by Developer, or any of Developer’s contractors, subcontractors, agents, employees, licensees or suppliers related to the Property, except to the extent arising from the gross negligence or willful misconduct of such Indemnified Party. The provisions of this Section shall survive the expiration or earlier termination of this Agreement.

11. Miscellaneous.

11.1 No Waiver. Any waiver by Housing Authority of any term or provision of this Agreement must be in writing. No waiver shall be implied from any delay or failure by Housing Authority to take action on any breach or default hereunder or to pursue any remedy allowed under this Agreement or applicable law. No failure or delay by Housing Authority at any time to require strict performance by Developer of any provision of this Agreement or to exercise any election contained herein or any right, power or remedy hereunder shall be Docusign Envelope ID: BB12E1BD-5301-8606-831D-FA9BB3ED347A

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construed as a waiver of any other provision or any succeeding breach of the same or any other provision hereof or a relinquishment for the future of such election.

11.2 Notices. Except as otherwise specified herein, all notices to be sent pursuant to this Agreement shall be made in writing and sent to the Parties at their respective addresses specified below or to such other address as a Party may designate by written notice delivered to the other parties in accordance with this Section. All such notices shall be sent by:
(a) personal delivery, in which case notice is effective upon delivery; (b) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered upon receipt if delivery is confirmed by a return receipt; (c) nationally recognized overnight courier, with charges prepaid or charged to the sender’s account, in which case notice is effective on delivery if delivery is confirmed by the delivery service;
(d) electronic mail transmission, in which case notice shall be deemed delivered upon transmittal, provided that a duplicate copy of the notice is promptly delivered by first-class, certified mail, or by overnight delivery. Any notice given by electronic mail shall be considered to have been received on the next business day if it is received after 5:00 p.m. recipient’s time or on a nonbusiness day.

Housing Authority:

Housing Authority of the City of Pittsburg
65 Civic Ave
Pittsburg, CA 94565
Attention: Darin Gale, Executive Director

Owner:

c/o Hope Solutions
399 Taylor Boulevard
Pleasant Hill, CA 94523
Attention: Deanne Pearn, Chief Executive Officer

11.3 Further Assurances. The Parties shall execute, acknowledge and deliver to the other such other documents and instruments, and take such other actions, as either shall reasonably request as may be necessary to carry out the intent of this Agreement.

11.4 Parties Not Co-Venturers. Nothing in this Agreement is intended to or shall establish the Parties as partners, co-venturers, or principal and agent with one another.

11.5 Action by the Housing Authority. Except as may be otherwise specifically provided herein, whenever any approval, notice, direction, consent or request by the Housing Authority is required or permitted under this Agreement, such action shall be in writing, and such action may be given, made or taken by the City Manager or by any person Docusign Envelope ID: BB12E1BD-5301-8606-831D-FA9BB3ED347A

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who shall have been designated by the Executive Director, without further approval by the City Council.

11.6 Non-Liability of City, Housing Authority, and Their Officials, Employees and Agents. No member, official, employee or agent of the City or Housing Authority shall be personally liable to Developer or any successor in interest, in the event of any default or breach by the City or Housing Authority, or for any amount of money which may become due to Developer or its successor or for any obligation of City or Housing Authority under this Agreement.

11.7 Headings; Construction. The headings of the sections and paragraphs of this Agreement are for convenience only and shall not be used to interpret this Agreement. The language of this Agreement shall be construed as a whole according to its fair meaning and not strictly for or against any Party.

11.8 Time is of the Essence. Time is of the essence in the performance of this Agreement.

11.9 Governing Law. This Agreement shall be construed in accordance with the laws of the State of California without regard to principles of conflicts of law.

11.10 Attorneys' Fees and Costs. If any legal or administrative action is brought to interpret or enforce the terms of this Agreement, the prevailing party shall be entitled to recover all reasonable attorneys' fees and costs incurred in such action.

11.11 Severability. If any provision of this Agreement is held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired thereby.

11.12 Entire Agreement; Exhibits. This Agreement contains the entire agreement of Parties with respect to the subject matter hereof, and supersedes all prior oral or written agreements between the Parties with respect thereto. The exhibits attached hereto are incorporated herein by this reference.

11.13 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.

SIGNATURES ON FOLLOWING PAGE
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IN WITNESS WHEREOF, the Parties have executed this Agreement effective as of the date first written above.

Village of Hope – Pittsburg, LLC,
a California limited liability company

By: Contra Costa Interfaith Transitional Housing, Inc. dba Hope Solutions, a California nonprofit public benefit corporation, its sole member/manager

By: _____________________________
Deanne Pearn,
Chief Executive Officer

HOUSING AUTHORITY OF THE CITY OF PITTSBURG,
a public body, corporate and politic

By: _______________________
Darin Gale
Executive Director

Attest: _______________________
Alice E. Evenson
Agency Clerk

Approved as to form:

__________________
Donna Mooney
Agency Attorney

SIGNATURES MUST BE NOTARIZED
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Exhibit A

PROPERTY DESCRIPTION

The land referred to in this Report is situated in the County of Contra Costa, City of Pittsburg, State of California, and is described as follows:

BEING A PORTION OF THE WEST 1/2 OF THE NORTHWEST 1/4 OF SECTION 29 TOWNSHIP 2 NORTH, RANGE 1 EAST, MOUNT DIABLO BASE AND MERIDIAN AND A SUBDIVISION OF PARCEL A AS SHOWN ON PARCEL MAP WAIVER PMW 88-01 FILED IN BOOK 14198, AT PAGE 255, CONTRA COSTA COUNTY RECORDS AND DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT LYING ON THE EASTERLY RIGHT OF WAY LINE OF

KIRKER PASS ROAD, SAID POINT ALSO BEING THE MOST NORTHWESTERLY

CORNER OF THAT CERTAIN PARCEL OF LAND DESCRIBED IN A QUITCLAIM DEED DATED FEBRUARY 18, 1987 FROM NORTHERN CALIFORNIA DISTRICT CHURCH OF

THE NAZARENE TO FIRST CHURCH OF THE NAZARENE OF PITTSBURG, FILED ON FEBRUARY 18, 1987, BOOK 13455 OR PAGE 24;

THENCE FROM SAID POINT OF BEGINNING, LEAVING SAID RIGHT OF WAY LINE, NORTH 81°27'07" EAST, A DISTANCE OF 59.39 FEET ALONG THE NORTHERLY BOUNDARY LINE OF SAID PARCEL A; THENCE LEAVING SAID NORTHERLY BOUNDARY LINE FROM A RADIAL LINE WHICH BEARS NORTH 89°51'01" WEST,

ALONG A NON-TANGENT CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF 70.00 FEET, SOUTHEASTERLY 83.52 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 68°21'44";

THENCE ALONG A REVERSE CURVE CONCAVE TO THE SOUTHWEST, HAVING A RADIUS OF 20.00 FEET, SOUTHEASTERLY 27.36 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 78°23'17";

THENCE SOUTH 10°10'32" WEST, A DISTANCE OF 25.46 FEET;

THENCE SOUTH 21°10'57" EAST, A DISTANCE OF 144.00 FEET;

THENCE SOUTH 26°22'22" EAST, A DISTANCE OF 30.83 FEET TO A POINT ON THE SOUTH LINE OF SAID PARCEL A;

THENCE ALONG SAID SOUTH LINE, SOUTH 63°37'38" WEST, A DISTANCE OF 155.92

FEET TO A POINT ON THE EASTERLY RIGHT OF WAY LINE OF KIRKER PASS ROAD, SAID POINT ALSO BEING THE SOUTHWESTERLY CORNER OF SAID PARCEL A;

THENCE FROM A RADIAL LINE WHICH BEARS SOUTH 77°03’15” WEST, ALONG A NON-TANGENT CURVE CONCAVE TO THE EAST, HAVING A RADIUS OF 1440.00 Docusign Envelope ID: BB12E1BD-5301-8606-831D-FA9BB3ED347A

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FEET, NORTHERLY 337.43 FEET ALONG SAID CURVE AND EASTERLY RIGHT OF WAY LINE OF KIRKER PASS ROAD, THROUGH A CENTRAL ANGLE OF 13°25’34” TO THE POINT OF BEGINNING.

PER PARCEL MAP WAIVER, PARCEL 1, PMW 25-03, RECORDED NOVEMBER 14, 2025, INSTRUMENT NO. 2025- 0127999

APN: 089-060-009
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STATE OF CALIFORNIA )
COUNTY OF Contra Costa )

On _____________________, 20___ before me, _________________________ , Notary Public, the undersigned, personally appeared ___________________________ ( ) personally known to me
( ) 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.

WITNESS my hand and official seal.

Signature _________________________________

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TRI-PARTY AGREEMENT AND PROPERTY OWNER’S WRITTEN CONSENT 5305 Kirker Pass Road (APN 089-060-009)

THIS TRI-PARTY AGREEMENT and PROPERTY OWNER’S WRITTEN
CONSENT (Agreement) is made as of July 20, 2026 (“Effective Date”), by and among Village of Hope - Pittsburg, LLC, a California limited liability company (“Developer”), Pittsburg Church of the Nazarene (“Property Owner”), and the Housing Authority of the City of Pittsburg, a public body, corporate and politic (“Housing Authority”) with reference to the following facts, understandings and intentions of the parties:

RECITALS
A. The Pittsburg Church of the Nazarene is the owner of 5305 Kirker Pass Road, Pittsburg, California, Contra Costa County, known as Assessor’s Parcel Number 089-060-009 (the “Property Owner”).

B. Developer is proposing to construct Transition Age Youth (TAY) (as such term is defined in the Loan Agreement) housing located on Developer’s leasehold interest in the western portion of the Property (“Project Site”) which will consist of fifteen (15) units and ancillary facilities for on-site services to be constructed on the Project Site, as well as appurtenant landscaping and improvements (“Improvements”).

C. Developer and Property Owner have entered into that certain Ground Lease dated December 15, 2023, as amended by a First Amendment to Ground Lease dated July 15, 2025 and as further amended by a Second Amendment to Ground Lease dated June , 2026 (collectively, the “Ground Lease”).

D. The Housing Authority proposes to provide a loan to assist in the construction of the Improvements in an amount not to exceed Five Hundred Thousand Dollars ($500,000) (“Loan”) to the Developer, provided that Borrower has complied with all conditions in the Loan Agreement.

ARTICLE 1.

DEFINITIONS AND EXHIBITS

Section 1.1 Definitions.

In addition to the terms defined elsewhere in this Agreement, the following definitions shall apply:

(a) “Agreement” means this Tri-Party Agreement.

(b) “County” means the County of Contra Costa, a political subdivision of the State of California.

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(c) “Deed of Trust” means the deed of trust and security agreement that will encumber Developer’s leasehold interest in the Project Site the Development to secure performance and repayment of the Loan.

(d) “Developer” means Village of Hope - Pittsburg, LLC, a California limited liability company and its permitted successors and assigns hereunder.

(e) “Housing Authority” means the Housing Authority of the City of Pittsburg.

“Improvements” means the fifteen (15) units of TAY housing, and facilities for on-site services to be constructed on the Project Site in accordance with the Loan Documents, plus appurtenant landscaping and improvements.

(f) “Loan” means the loan of monies from the Housing Authority to the Developer for a total principal amount not to exceed Five Hundred Thousand Dollars ($500,000).

(g) “Loan Documents” means the Loan Agreement, the Note, the Deed of Trust, and the Regulatory Agreement.

(h) “Note” means the Promissory Note that will evidence Developer’s obligation to perform or repay the Loan.

(i) “Parties” means the Property Owner, the Developer, and the Housing Authority.

(j) “Project Site” means the leasehold created on the western portion of the Property where the Improvements will be constructed, as more particularly described in the Ground Lease and Exhibit A attached hereto.

(k) “Property” means the real property located in the City as more particularly described in the attached Exhibit A.

(l) “Property Owner” means the owner of the Property according to the County records is the Pittsburg Church of the Nazarene.

(m) “Property Owner’s Written Consent” because the Property is not owned by the Developer, Developer must obtain written consent from the Property Owner allowing the recording against the Property of the Deed of Trust, Regulatory Agreement, and any other encumbrances related to the City’s Community Facilities District against the Project Site or the Property, as applicable.

(aa) “Regulatory Agreement” means the Regulatory Agreement and Declaration of Restrictive Covenants dated as of the date hereof between the Housing Authority and Borrower which restricts the occupancy and rents for the Development.

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(bb) “Transfer” means:

(i) Any total or partial sale, lease, assignment, or other conveyance, or any trust or power, or any transfer in any other mode or form, of or with respect to this Agreement or of any part of or interest in the Property;

EXHIBIT A: Legal Description of the Property
Legal Description of the Project Site

ARTICLE 2.

SUMMARY OF AGREEMENT – PROPERTY OWNER, DEVELOPER,

AND HOUSING AUTHORITY

Section 2.1 Summary of Agreement. The Parties propose to enter this Agreement to enable the construction of the Improvements.

Section 2.2 Property Owner. The Property Owner hereby acknowledges and consents to the Developer recording against the Property or Project Site, as noted below:
a. Deed of Trust to secure the Loan against the Project Site; b. Regulatory Agreement against the Project Site restricting the fifteen (15) units of TAY housing as affordable units for fifty-five (55) years from the Effective Date of the Regulatory Agreement; and
c. Community Facilities District as described in Section 4.4 of the Loan Agreement against the Property underlying the Project Site.

Section 2.3 Developer. Developer agrees to obtain the Property Owner’s Written Consent allowing the recording of a Deed of Trust, Regulatory Agreement, and any other encumbrances related to the City’s Community Facilities District that will enable the construction of the Improvements.

Section 2.4 Housing Authority. Housing Authority shall upon satisfaction of the conditions in Section 2.5 of the Loan Agreement, disburse the Loan to pay for the City development fees. Any remaining Loan amount will be disbursed to the Developer.

ARTICLE 3.

TERM OF THIS AGREEMENT

Section 3.1 Term. This Agreement shall run with the land and will continue to be enforceable so long as the Improvement exists, regardless of the owner or operator of Project Site.

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ARTICLE 4

GENERAL PROVISIONS

Section 4.1 Time. Time is of the essence in this Agreement.

Section 4.2 Relationship of Parties. Nothing contained in this Agreement shall be interpreted or understood by any of the Parties, or by any third persons, as creating the relationship of employer and employee, principal and agent, limited or general partnership, or joint venture between the Parties or their agents, employees or contractors. Each Party has and retains the right to exercise full control of employment, direction, compensation, and discharge of all persons assisting in the performance of services of such Party under the Agreement.

Section 4.3 No Claims. Nothing contained in this Agreement shall create or justify any claim against the Housing Authority by any person that either the Property Owner, or Developer, may have employed or with whom the Property Owner, or Developer may have contracted relative to the purchase of materials, supplies or equipment, or the furnishing or the performance of any work or services with respect to the Property, or the construction of the Improvements, and the Property Owner or Developer, as applicable shall include similar requirements in any contracts entered into for the construction of the Improvements and for operation of the Improvements.

Section 4.4 Notices, Demands and Communications. Formal notices, demands, and communications between the Parties shall be sufficiently given if, and shall not be deemed given unless, dispatched by certified mail, return receipt requested, electronic mail, or delivered by an express delivery service with a receipt showing date of delivery, or hand delivered with a receipt showing date of delivery, to the principal offices of the Parties as follows:

Property Owner: Pittsburg Church of the Nazarene
5305 Kirker Pass Road
Pittsburg, CA 94565
Attention: Christy Dickt, Pastor

Developer: c/o Hope Solutions
399 Taylor Boulevard
Pleasant Hill, CA 94523
Attention: Deanne Pearn, Chief Executive Officer

Housing Authority: Housing Authority of the City of Pittsburg 65 Civic Avenue
Pittsburg, CA 94565
Attention: Darin Gale, Executive Director
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Such written notices, demands and communications may be sent in the same manner to such other addresses as the affected party may from time to time designate by mail as provided in this Section. Delivery shall be deemed to have occurred at the time indicated on the receipt for delivery or refusal of delivery.

Section 4.5 Non-Liability of Officials, Employees and Agents. No member, official, employee or agent of the City or Housing Authority shall be personally liable to the Property Owner, or any successor in interest, in the event of any default or breach by the Housing Authority or for any amount which may become due to the Property Owner, Developer or any successor or on any obligation under the terms of this Agreement.

Section 4.6. Title of Parts and Sections. Any titles of the sections or subsections of this Agreement are inserted for convenience of reference only and shall be disregarded in interpreting this Agreement.

Section 4.7. Applicable Law. This Agreement shall be interpreted under and pursuant to the laws of the State of California.

Section 4.8. Severability. If any term, provision, covenant or condition of this Agreement is held in a final disposition by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall continue in full force and effect unless the rights and obligations of the parties have been materially altered or abridged by such invalidation, voiding or unenforceability. The Parties to this Agreement, and their counsel, have read and reviewed this Agreement and agree that any rule of construction to the effect that ambiguities are to be resolved against the drafting party (including but not limited to Civil Code Section 1654) shall not apply to this Agreement.

Section 4.9 Legal Actions. In the event any legal action is commenced to interpret or to enforce the terms of this Agreement or to collect damages as a result of any breach thereof, the party prevailing in any such action shall be entitled to recover against the party not prevailing all reasonable attorneys' fees and costs incurred in such action (and any subsequent action or proceeding to enforce any judgment entered pursuant to an action on this Agreement).

Section 4.10 Binding Upon Successors. This Agreement shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors, and assigns of each of the parties. However, there shall be no transfer except pursuant to the terms of the Owner Loan Documents and the Tenant Loan Documents (as applicable). Any reference in this Agreement to a specifically named party shall be deemed to apply to any successor, heir, administrator, executor, or assign of such party who has acquired an interest in compliance with the terms of this Agreement, or under law.

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Section 4.11. Entire Understanding of the Parties. This Agreement constitutes the entire understanding and agreement of the Parties.

Section 4.12 Counterparts; Multiple Originals. This Agreement may be executed in counterparts. This Agreement may be executed in multiple originals, each of which is deemed to be an original.

BY SIGNING BELOW, the Parties agree to this Agreement as of the date first written above.

[SIGNATURES APPEAR ON THE NEXT PAGE]

Docusign Envelope ID: 91DFB508-0521-8F2E-83D2-041AE5E99957

015.001/718832

PROPERTY OWNER:

Pittsburg Church of the Nazarene

By: _______________________
Christy Dickt
Pastor

Developer:

Village of Hope – Pittsburg, LLC, a
California limited liability company

By: Hope Solutions, a California
nonprofit public benefit corporation,
its sole member and manager

By: _______________________
Deanne Pearn
Chief Executive Officer

Housing Authority:

Housing Authority of the City of
Pittsburg, a public body, corporate
and politic

By: _______________________
Darin Gale,
Executive Director

Docusign Envelope ID: 91DFB508-0521-8F2E-83D2-041AE5E99957

015.001/718832
Legal Description of the Property

The land referred to in this Report is situated in the County of Contra Costa, City of Pittsburg, State of California, and is described as follows:

BEING A PORTION OF THE WEST 1/2 OF THE NORTHWEST 1/4 OF SECTION 29 TOWNSHIP 2 NORTH, RANGE 1 EAST, MOUNT DIABLO BASE AND MERIDIAN AND A SUBDIVISION OF PARCEL A AS SHOWN ON PARCEL MAP WAIVER PMW 88-01 FILED IN BOOK 14198, AT PAGE 255, CONTRA COSTA COUNTY RECORDS
AND DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT LYING ON THE EASTERLY RIGHT OF WAY LINE OF KIRKER PASS

ROAD, SAID POINT ALSO BEING THE MOST NORTHWESTERLY CORNER OF THAT CERTAIN PARCEL OF LAND DESCRIBED IN A QUITCLAIM DEED DATED FEBRUARY 18, 1987 FROM

NORTHERN CALIFORNIA DISTRICT CHURCH OF THE NAZARENE TO FIRST CHURCH OF THE NAZARENE OF PITTSBURG, FILED ON FEBRUARY 18, 1987, BOOK 13455 OR PAGE 24;

THENCE FROM SAID POINT OF BEGINNING, LEAVING SAID RIGHT OF WAY LINE, NORTH 81°27'07" EAST, A DISTANCE OF 59.39 FEET ALONG THE NORTHERLY BOUNDARY LINE OF SAID PARCEL A; THENCE LEAVING SAID NORTHERLY BOUNDARY LINE FROM A RADIAL LINE WHICH BEARS NORTH 89°51'01" WEST, ALONG A NON-TANGENT CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF 70.00 FEET, SOUTHEASTERLY 83.52 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 68°21'44";

THENCE ALONG A REVERSE CURVE CONCAVE TO THE SOUTHWEST, HAVING A RADIUS OF

20.00 FEET, SOUTHEASTERLY 27.36 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 78°23'17";

THENCE SOUTH 10°10'32" WEST, A DISTANCE OF 25.46 FEET;

THENCE SOUTH 21°10'57" EAST, A DISTANCE OF 144.00 FEET;

THENCE SOUTH 26°22'22" EAST, A DISTANCE OF 30.83 FEET TO A POINT ON THE SOUTH LINE OF SAID PARCEL A;

THENCE ALONG SAID SOUTH LINE, SOUTH 63°37'38" WEST, A DISTANCE OF 155.92 FEET TO

A POINT ON THE EASTERLY RIGHT OF WAY LINE OF KIRKER PASS ROAD, SAID POINT ALSO BEING THE SOUTHWESTERLY CORNER OF SAID PARCEL A;

Docusign Envelope ID: 91DFB508-0521-8F2E-83D2-041AE5E99957

015.001/718832
THENCE FROM A RADIAL LINE WHICH BEARS SOUTH 77°03’15” WEST, ALONG A NON- TANGENT CURVE CONCAVE TO THE EAST, HAVING A RADIUS OF 1440.00 FEET, NORTHERLY 337.43 FEET ALONG SAID CURVE AND EASTERLY RIGHT OF WAY LINE OF KIRKER PASS ROAD, THROUGH A CENTRAL ANGLE OF 13°25’34” TO
THE POINT OF BEGINNING.

PER PARCEL MAP WAIVER, PARCEL 1, PMW 25-03, RECORDED NOVEMBER 14, 2025, INSTRUMENT NO. 2025- 0127999

APN: 089-060-009

Docusign Envelope ID: 91DFB508-0521-8F2E-83D2-041AE5E99957

Housing Authority Minutes Page 1 of 2 June 15, 2026

CITY OF PITTSBURG

HOUSING AUTHORITY MEETING MINUTES

DATE: June 15, 2026

LOCATION: Council Chamber, City Hall, 65 Civic Avenue, Pittsburg, CA 94565

CITY COUNCIL/AGENCY MEMBERS
Dionne Adams, Mayor/Chair
Angelica Lopez, Vice-Mayor/Chair
Juan Antonio Banales, Council/Agency Member
Arlene Kobata, Council/Agency Member
Jelani Killings, Council/Agency Member
S.L. Floyd, Agency Member
Annie Hill Herring, Agency Member

APPOINTED OFFICIALS
Darin E. Gale, City Manager/Executive Director
Donna Mooney, City Attorney/Legal Counsel
Alice E. Evenson, City Clerk/Agency Secretary (elected) Nancy Parent, City Treasurer (elected)

Chair Adams called the meeting of the Housing Authority to order at 7:03 P.M. in the Council Chamber at City Hall, 65 Civic Avenue Pittsburg, CA.

ROLL CALL

All Members were present.

CONSIDERATION

3. Adoption of a Housing Authority Resolution Approving the Fiscal Year 2026-27 Budget

On Motion by Member Floyd, seconded by Member Herring and adopted unanimously.

CONSENT CALENDAR

On Motion by Member Floyd, seconded by Member Herring and adopted unanimously.

4. Minutes of March 16, 2026

5. Adoption of a Housing Successor Agency Resolution Approving a Budget Amendment for the Fiscal Year 2025-2026

HOUSING AUTHORITY MEMBER REMARKS

Member Floyed thanked the Council for their reporting, stating it is encouraging and encourages the community to reach out more.

Member Herring thanked the Housing Authority and City Council for their concerns for the community and making them feel welcome to come and speak at meetings.

Housing Authority Minutes Page 2 of 2 June 15, 2026

ADJOURNMENT

The Housing Authority adjourned at 7:38 P.M.

Respectfully submitted,

Alice E. Evenson, Secretary

PORT CHICAGO COMMEMORATION

WHEREAS, the majority of those killed were African American enlisted sailors who, under the segregated policies of that era, were assigned the perilous and grueling task of loading live ammunition without adequate training or safeguards; and

WHEREAS, in the weeks that followed, 50 African American sailors refused to resume the same hazardous work under unchanged and unsafe conditions, and were subsequently convicted of mutiny, becoming known as the “Port Chicago 50”; and

WHEREAS, the courage of these sailors and the injustice they endured helped expose the inequities of segregation in the armed forces and contributed to the desegregation of the United States military and to the broader American civil rights movement; and

WHEREAS, on July 17, 2024, the 80th anniversary of the disaster, the United States Navy formally exonerated 256 African American sailors, including the Port Chicago 50, concluding that their courts-martial were marred by fundamental injustice and significant legal errors, thereby restoring in the official record the honor these heroes had long held in the public's eyes; and

WHEREAS, the Port Chicago Naval Magazine National Memorial, established by Congress and administered by the National Park Service, preserves this history and stands as a place of remembrance for our community and region; and

WHEREAS, the sacrifice of those who perished, the moral courage of those who stood against injustice, and the enduring lessons of Port Chicago remain deeply meaningful to the City of Pittsburg and its residents, who each July join in commemorating this history and honoring all those touched by these events.

NOW, THEREFORE, BE IT PROCLAIMED that I, Dionne Adams, Mayor of the City of Pittsburg, on behalf of the City Council, hereby honor the memory of the lives lost in the Port Chicago disaster and recognize the enduring legacy and vindicated honor of the Port Chicago 50, and hereby declare July 17, 2026, as “PORT CHICAGO DAY” in the City of Pittsburg, and encourages all residents to reflect upon the sacrifice, courage, and pursuit of justice that this day represents.

____________________________________________________________________________________________________________________________________________________ Alice E. Evenson, City Clerk
____________________________________________________________________________________________________________________________________________________ Dionne Adams, Mayor

STAFF REPORT

MEETING DATE: July 20, 2026

TO: Mayor and Council Members

FROM: Darin E. Gale‚ City Manager
John Samuelson, Director of Public Works/City Engineer
Sharon Paz, Administrative Analyst II

SUBJECT: Adoption of a City Council Resolution Confirming the Engineer’s Report and District Diagram, and Ordering a Levy for Citywide Landscaping and Lighting Assessment District 1988-1 for Fiscal Year 2026/27

EXECUTIVE SUMMARY

Citywide Landscaping and Lighting Assessment District 1988-1 (Citywide LLAD) was established in 1988, and the funds collected are used to maintain street lighting, median and right-of-way landscaping, and park maintenance throughout the district.

The assessment for commercial, institutional, industrial, churches, and nonprofit parcels has not increased since Fiscal Year (FY) 1990/91. The assessment for residential parcels has not increased since 2007/08. There’s no escalating factor in the assessment rate to adjust for inflation. Each year prior to ordering the improvements and levying the assessments, the City Council holds a public hearing.

FISCAL IMPACT

To maintain the Citywide LLAD at current service levels, the Public Works Department has a budget of:

Total Estimated Beginning Fund
Balance
$(418,046)

Revenue Description Amount
Assessments Posted to County Tax Roll 3,187,022
Assessment for City-owned & Parcels (General Fund) 57,871

Assessment for City-subsidized Parcels (General Fund) 71,566 General Benefit (General Fund) 396,941
Gap Funding (General Fund) 1,624,000
Total Estimated Revenue $5,337,400
Expenditure Description Amount(1)
Salary and Benefits (63.41% of total costs) 4,311,065
Professional and Consulting Services (4.36% of total costs) 296,400 Materials, Supplies, and Services (23.28% of total costs) 1,582,375 Cost Allocation (8.95% of total costs) 608,540
Total Cost of Improvements $6,798,380
Less General Benefit Portion (5.84% of total costs) (396,941) Total Cost of Improvements to Be Assessed $6,401,439
Total Special Benefit Factors 34,367.25
Actual Cost Per Special Benefit Factor - FY 2026/27
Lighting and Landscaping 186.27
Assessed Rate Per Special Benefit Factor - FY 2026/27
Residential and Mixed Use 102.18
All Other Uses 77.18
City Subsidy Per Special Benefit Factor - FY 2026/27
Residential and Mixed Use 84.09
All Other Uses 109.09

($ 1,460,980) Excess of Revenue Over Expense

RECOMMENDATION

City Council adopt a resolution confirming the Engineer's Report and District Diagram for Citywide Landscaping and Lighting District 1988-1 and order the levy of assessments for FY 2026/27.

BACKGROUND

On June 6, 1988, City Council confirmed the Engineer’s Report, ordered improvements, and levied the first annual assessment for Citywide LLAD. The funds collected are used to maintain street lighting, median and right-of-way landscaping, and park maintenance throughout the district. The annual assessment was set at $69.24 per benefit factor for all land use types.

In FY 1990/91, the City Council authorized a $7.94 increase, which brought the total assessment per benefit factor to $77.18 for all parcels. This increase was affirmed by voters in the 1996 general election.

In FY 2007/08, City Council authorized a $25 increase for residential land use only. In accordance with Proposition 218, the City conducted a mailed ballot election for the assessment increase, and it was affirmed by voters. This brought the total assessment per benefit factor to $102.18 for all residential parcels.

On May 4, 2026, City Council adopted Resolution No. 26-14768, directing the Engineer of Work to file an annual Engineer’s Report for FY 2026/27 in accordance with the Landscaping and Lighting Act of 1972. That report has been prepared and is on file in the Office of the City Clerk.

On June 1, 2026, City Council adopted Resolution No. 26-14781, approving the FY 2026/27 Preliminary Engineer’s Report, declaring an intention to levy and collect assessments within the Citywide LLAD, and setting the date of July 20, 2026, to conduct a public hearing.

SUBCOMMITTEE FINDINGS

This item was not brought before a subcommittee.

STAFF ANALYSIS

The Landscaping and Lighting Act of 1972 (Streets & Highways Code Section 22500 et seq.) governs the establishment of Landscaping and Lighting Assessment Districts.

The assessment on district parcels allows local government to recoup only the proportionate share of costs that provide a special and direct benefit to the properties located within the boundaries of the district.

Parcels within Citywide LLAD are assessed for the proportionate special benefit they receive from the following improvements:
• Landscape – Maintenance of 415 acres in rights-of-way, medians, and all parks • Street Trees - Maintenance of 18,244 street trees
• Streetlights – Maintenance of 2,333 city-owned streetlights The improvements provide the benefit of:
• Street Lighting – Improved safety and accessibility.
• Landscaping in parks, medians, and rights-of-way and the maintenance of street trees - Improved aesthetics and increased livability.

Parcels within the district do not receive all the benefit provided from the improvements.

People from outside the Citywide LLAD also benefit from the landscaping and lighting improvements when they work, play, and visit the district. This general benefit is not assessable, and the City must fund the portion of improvements that provide a general benefit to the public at large with some other funding source, such as the General Fund.

Parcels within a Citywide LLAD that are owned or used by any agency, the State of California, or the United States are not exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.

Due to increasing costs and stagnant assessment rates, and no escalating factor in the rate methodology, there continues to be a significant budget deficit for landscape, street tree, and streetlight maintenance.

For FY 2026/27, the actual cost of the improvements per benefit factor is $186.27.

Since FY 1990/91, the land use categories below have been assessed $77.18, which results in a General Fund subsidy of $109.09 per benefit factor this fiscal year:
• Vacant Commercial and Institutional
• Developed Industrial
• Vacant Industrial
• Developed Commercial & Institutional
• Churches
• Parking Lots
• Non-Profit Organizations
Since FY 2007/08, the residential land use categories below have been assessed $102.18, which results in a General Fund subsidy of $84.09 per benefit factor this fiscal year:
• Single Family Residential
• 2 Units, Residential
• 3 Units, Residential
• 4 Units, Residential
• Combo with More than 1 Residence
• Multi-Family, 5 or More Residences
• Condos, Co-ops, Clusters
Since FY 2007/08, the City began paying for the assessments levied upon the following public school parcels:

Description Amount
Contra Costa County Junior College District 5,840
Pittsburg Unified School District 57,367
Mount Diablo Unified School District 2,646
State Board of Equalization Properties 5,713
Subtotal Estimated Revenue $71,566

For FY 2026/27, the total cost of improvements to be assessed is $6,401,439. The assessment revenue posted to the county tax rolls combined with the City-owned and sponsored parcels totals $3,316,459. This reveals a significant gap between improvements eligible to be assessed but are being funded, to a great extent, by the General Fund.

On December 21, 2020, City Council adopted a minute order approving the Landscape Maintenance Master Plan (LMMP). The LMMP provided an evaluation of the conditions of the landscape throughout the City of Pittsburg, discussed Public Works challenges, and provided solutions to remedy the leading issues. Additionally, a proposed schedule of improvements and guidelines was presented to improve existing conditions. The plan included an estimate of costs associated with full implementation.

An updated plan was presented to the Infrastructure and Transportation Subcommittee on December 15, 2023. It was updated again in 2025 to align with the continued goal of increasing the beautification of City maintained areas. The estimate of costs to fully implement the LMMP, which would establish and maintain the City’s landscaping at the Council’s desired level, was $12.7M annually.

Increasing the beautification of City maintained areas has been one of the City Council’s goals for at least the past eight (8) years. Effective landscape and tree maintenance contribute greatly to achieving this goal. Due to increasing costs and stagnant assessment rates, and no escalating factor in the rate methodology, the Citywide LLAD assessments, continue to be insufficient to support the current or aspired level of service.

State statutes mandate the annual renewal procedures for Citywide LLAD. The public hearing is the third and final step of that process.

ATTACHMENTS: Resolution
Engineer’s Report

BEFORE THE CITY COUNCIL OF THE CITY OF PITTSBURG

In the Matter Of:

Confirming the Engineer’s Report and District )
Diagram, and Ordering a Levy for Citywide ) RESOLUTION NO. 26- Landscaping and Lighting Assessment District )
1988-1 for Fiscal Year 2026/27 )

WHEREAS, on May 4, 2026, the City Council adopted Resolution No. 26-14767 directing the City Engineer to file an annual Engineer’s Report for Citywide Landscaping and Lighting Assessment District 1988-1 (Citywide LLAD) for Fiscal Year 2026/27; and

WHEREAS, the assessment pays for maintenance and improvements to street lights and street trees, facilities landscaping, rights-of-way, and medians; and

WHEREAS, on June 1, 2026, City Council adopted Resolution No. 26-14780, approving the FY 2026/27 Preliminary Engineer’s Report, declaring an intention to levy and collect assessments within the Citywide LLAD, and setting the date of July 20, 2026, to conduct a public hearing; and

WHEREAS, on June 25, the City Engineer filed the Engineer’s Report with the City Clerk pursuant to the Landscaping and Lighting Act of 1972 (Streets & Highway Code Section 22500 et seq.); and

WHEREAS, all interested persons are referred to that report for a full and detailed description of the improvements, the boundaries of the assessment district, and the proposed assessments upon assessable lots and parcels of land within the Citywide LLAD.

NOW, THEREFORE, BE IT RESOLVED that the City Council hereby confirms the Engineer’s Report for the Citywide LLAD and orders the levy of assessments for FY 2026/27.

PASSED AND ADOPTED by the City Council of the City of Pittsburg at a regular meeting on the 20th day of July 2026, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

____________________
Dionne Adams, Mayor
ATTEST:

__________________________
Alice E. Evenson, City Clerk

CITYWIDE

LANDSCAPING AND LIGHTING

ASSESSMENT DISTRICT
1988-1
Engineer’s Report:

John Samuelson
Director of Public Works/City Engineer

CONTRA COSTA COUNTY , CALIFORNIA

CITY OF PITTSBURG
City of Pittsburg, CA
July 20, 2026
Fiscal Year 2026/27

TABLE OF CONTENTS

1. INTRODUCTION……………………………………………………………………………………………1

1.1 Background…………………………………………………………………………….………..1

1.2 Process for Annual Assessment………………………………………………….…………...1

1.3 Legislative Context……………………………………………………………………………...2

1.4 Court Rulings…………………………………………………………………………………….2

2. PLANS AND SPECIFICATIONS……………………………………………………………….…………5

2.1 Description of Boundaries of the District……………………………………………………..5

2.2 Description of Improvements and Services………………………………………………….5

3. ESTIMATE OF COSTS…………………………………………………………………………………….9

3.1 Improvement Costs……………………………………………………………………………..9

3.2 Estimated Revenue……………………………………………………………………………10

3.3 Fund Balance…………………………………………………………………………………..10

4. BENEFITS FROM IMPROVEMENTS………………………………………………………..………….11

5. QUANTIFICATION OF BENEFIT………………………………………………………………………..12

5.1 Street Lighting…………………………………………………………………….…………….12

5.2 Street Trees and Other Landscaping ………………………………………….…………….12

5.3 Residential Benefit……………………………………………………………………………..12

5.4 Commercial and Industrial Benefit……………………………………………………………13

5.5 Mathematical Benefit Calculation……………………………………………………………..13

6. METHOD OF APPORTIONMENT……………………………………...……………………………….14

6.1 Method…………………………………………………………………………….…………….14

6.2 Assessment by Land Use Category....…………………………..…………………………...14

6.3 Calculation of Multi-Family Residential Assessment………………………………………..14

6.4 Residential Benefit Factors…………………………………………………………………….17

6.5 Calculation of Commercial Assessment………………………………………………………22

6.6 Calculation of Industrial Assessment………………………………………………………….24

6.7 Amount To Be Assessed………………………………………………………………………..25

6.8 Method of Collection…………………………………………………………………………….26

7. CERTIFICATE……………………………………………………………………..………………………27

8. ASSESSMENT DISTRICT DIAGRAM………………………………………………………...………..28

9. ASSESSMENT ROLL…………………………………………………………………………………….30

1. INTRODUCTION

1.1 Background

The City Council of the City of Pittsburg (the “City”) pursuant to the Landscaping and Lighting Act of 1972 (Streets & Highways Code Section 22500 et seq.) (the “1972 Act”), has adopted Resolution No. 26-14767 Directing the City Engineer to Prepare and File an Annual Report for Citywide Landscaping and Lighting Assessment District 1988-1 (the “District”) for Fiscal Year (“FY”) 2026/27.

The Annual Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations, and servicing of the improvements for the District for the referenced fiscal year, a diagram of the District showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations, and servicing the improvements.

The following assessment is proposed to be authorized in order to pay the estimated costs of administration, maintenance, operation, and servicing of the improvements to be paid by the assessable real property in the District in proportion to the special benefit received.

1.2 Process for Annual Assessment

In June 1988, the City Council confirmed the Engineer’s Report, ordered improvements, and levied the first annual assessment for the District. The annual assessment was set at $69.24 per benefit factor and increased to $77.18 per benefit factor in FY 1990/91. This was affirmed by voters in the 1996 general election.

For FY 2007/08 and all years thereafter, the City increased the assessment for residential land use, (category codes 01, 21, 22, 23, 24, 25 and 29), for a total assessment of $102.18 per benefit factor. All other parcels including commercial, institutional, industrial, churches, and non-profit continue to pay the current assessment of $77.18 per benefit factor. In accordance with Proposition 218, the City conducted a mailed ballot election for the assessment increase.

This report is based on the report commissioned for the District’s formation and subsequent reports prepared in previous fiscal years. As required by the procedures specified in the Act, an Engineer’s Report must be prepared on an annual basis and contain a full and detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The Engineer’s Report may also identify future planned projects.

The City Council must also annually adopt a resolution of intention which:

• Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein.
• Refers to the District by its distinctive designation and indicates the general location.

• Refers to the report of the engineer on file with the City Clerk for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. • Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment.
• Describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements.
• States if the assessment is proposed to increase from the previous year.

1.3 Legislative Context

In 1996, California voters adopted Proposition 218, known as the “Right to Vote on Taxes Act,” which added Articles XIII C and XIII D to the California Constitution. Article XIII D established new substantive and procedural requirements on agencies for levying assessments, being levies on real property by an agency for a special benefit conferred upon the real property. “Special Benefit” is defined in Article XIII D as “a particular and distinct benefit over and above general benefits conferred on a real property located in the district or to the public at large.”

Article XIII D imposes five basic substantive requirements on assessments:

(1) All parcels that will have a special benefit conferred upon them and upon which an assessment will be imposed must be identified;
(2) The general benefits must be distinguished from the special benefits conferred on the parcels;
(3) The proportionate special benefit derived by each identified parcel must be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided;
(4) The amount assessed to a parcel must not exceed the reasonable cost of the proportional special benefit conferred on that parcel and must not include any costs attributable to the general benefit; and
(5) Parcels within a district that are owned or used by any agency, the State of California, or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.

Article XIII D also places procedural requirements on assessments, which include preparing an engineer’s report, providing written notice of the proposed assessment and a public hearing to property owners, holding a public hearing, and providing for a protest ballot proceeding.

1.4 Court Rulings

Since the initial passage of Proposition 218, several court rulings have helped provide context and direction with respect to the procedures and requirements of Article XIII D for levying assessments.

Several of the key concepts from these rulings are summarized below.

1.4.1 GENERAL BENEFIT

Article XIII D requires an agency to separate the general benefits from the special benefits conferred on the identified parcels because only special benefits are assessable.

The Court of Appeal in Golden Hills Neighborhood Assn., Inc. v. City of San Diego (2011) (“Golden Hills”) clarified this concept by stating, “Separation and quantification of general and special benefits must be accomplished by apportioning the cost of a service or improvement between the two and assessing property owners only for the portion of the cost representing special benefits.”

The Court of Appeal in Beutz v. County of Riverside (2010) (“Beutz”) noted that the trial court took judicial notice of the Legislative Analyst’s Office pamphlet titled “Understanding Proposition 218” which states an agency must, “estimate the amount of special benefit landowners would receive from the project or service, as well as the amount of ‘general benefit.’ This step is needed because Proposition 218 allows local government to recoup from assessments only the proportionate share of cost to provide the special benefit.”

The Court in Beutz furthered this idea stating, “Separating the general from the special benefits of a public improvement project and estimating the quantity of each in relation to the other is essential if an assessment is to be limited to the special benefits.”

The Court of Appeal again reiterated the need to separate, quantify and apportion costs to general benefits from the improvements in Broad Beach Geologic Hazard Abatement District v 31506 Victoria Point LLC (2022), stating, “The District cites no authority, and we are aware of none, suggesting that an agency’s subjective intent determines the need to account for general benefits.”

1.4.2 BENEFIT-BASED NOT COST-BASED

In Town of Tiburon v. Bonander (2009) (“Tiburon”), the Court of Appeal clarified the idea that assessments must be apportioned based upon benefit rather than cost. The Court stated, “Proportionate special benefit is the basis upon which a project’s total assessable costs are apportioned among parcels within an assessment district.”

The assessment on a particular property cannot be based on the relative cost of the improvements to the property, but rather on the special benefit conferred on such property. The Court in Tiburon also stated, “an assessment represents the entirety of the cost of the improvement or property-related service, less any amount attributable to general benefits (which may not be assessed), allocated to individual properties in proportion to the relative special benefit conferred on the property.”

1.4.3 MEASURING AND APPORTIONING SPECIAL BENEFIT

The Court in Tiburon acknowledged the difficulty of trying to precisely assign and measure special benefit, stating, “Any attempt to classify special benefits conferred on particular properties and to assign relative weights to those benefits will necessarily involve some degree of imprecision.”

The Court in Tiburon went on to say that a formula assigning equal weight to different special benefits “may be a legally justifiable approach to measuring and apportioning special benefits, [but] it is not necessarily the only valid approach. Whichever approach is taken to measuring and apportioning special benefits, however, it must be both defensible and consistently applied.”

2. PLANS AND SPECIFICATIONS

Pursuant to sections 22567(a) and 22568 of the 1972 Act, this report describes the existing and any proposed improvements for the District. The purpose of the District is to provide for the continued maintenance, operation, and servicing of various public improvements specially benefiting property within the District. The sections below provide general descriptions of the improvements maintained by the District.

2.1 Description of Boundaries of the District

The Assessment Diagram showing the boundary for the District can be found in Section 8.

2.2 Description of Improvements and Services

2.2.1 STREET LIGHTING

The improvements include the maintenance, operation, and servicing of streetlights throughout the boundary of the District. The improvements are generally described as: maintenance, operation, and servicing of public street lighting facilities, including all works or improvements used or useful for the lighting of any public places, including ornamental standards, luminaires, poles, supports, tunnels, manholes, vaults, conduits, pipes, wires, conductors, guys, stubs, platforms, braces, contacts, switches, capacitors, meters, communication circuits, appliances, attachments, and appurtenances.

Maintenance, operation, and servicing includes, but is not limited to, personnel, furnishing utilities, electrical energy and timing/switching, lamp changing, emergency services, pole painting, fixture cleaning, glassware replacement, and rehabilitation, which includes modernization and replacement of systems; repairs, including poles, conduit, wiring and fusing, and fixtures repair and replacement, contracting services and other items necessary for the satisfactory operation of these services.

The street lighting system includes all streetlights within the public right-of-way and easements. In the District, there is a total of 4,544 streetlights of which 2,333 are owned by the City, and 2,211 are PG&E owned.

2.2.2 STREET TREES AND OTHER LANDSCAPING

The improvements include the maintenance, operation, and servicing of street trees and landscaping throughout the boundary of the District. The improvements are generally described as: the maintenance, operation, and servicing of trees, landscape and appurtenant facilities in the public right- of-way areas, as well as open space throughout the District. Eligible district costs may include, but are not limited to, personnel, furnishing electrical energy, utilities such as water and gas, materials, contracting services, and other items necessary for the satisfactory operation of these services.

The improvements authorized to be maintained and serviced include, but are not limited to:
groundcover, turf, trees, shrubs, planters, the landscaped areas and weed abatement of open spaces, and may also include sidewalk and hardscape improvements, entry monuments and associated appurtenant facilities.

Maintenance includes but is not limited to trimming, pruning, weeding, fertilizing, irrigating, trash removal, sprinkler repair, plant replacement, and other necessary maintenance functions. Removal and replacement of damaged or unhealthy trees and plants located on eroded slope areas. Stabilization and soil replacement of eroded slopes.

There are approximately 415 acres of landscape maintenance area and 18,244 city-maintained trees within the District. The general location of the Improvements within the District is described as follows:

1. Park and Trail Landscaping

8th St. Linear Park Larry Lasater Park
Americana Park John S. Bryant Park
BART Pedestrian and Bicycle Trail Marina Walk Park
Buchanan Park Mariner Park
California Seasons Park Oak Hills Park
Central Park Oak Hills Park West
City Park PITTSBURG Letters and Parklet
Central Harbor Park Premier Fields
Columbia St. Linear Park Ray Giacomelli Park
De Anza Park Riverview Park
East Bay MUD Trail San Marco Park – West
Frontage Rd. Living Green Trail Santa Fe Linear Park
Harbor St. Trailhead Small World Park
Highlands Park Stoneman Park
Highlands Ranch Park Stoneman Park – South (undeveloped) Hillsdale Park Stoneman Trailhead
John Buckley Square Village Park at New York Landing

2. Facilities Landscaping

E. 3rd St. Parking Lot Environmental Center
E. 6th St. Parking Lot Old Town (Railroad Ave.)
City Hall Heritage Plaza
Community Youth Center Marina Center
Dream Courts Senior Center

3. Median Landscaping

E. 3rd St. (Marina Blvd. to East St.) Loveridge Rd. (North of Highway 4) W. 10th St. (Railroad Ave. to Beacon St.) McDermott Ave. (at Buchanan Rd.) Bailey Rd. (W. Leland Rd. to Highway 4) Marina Blvd. (Bayside Dr. to E. 3rd St.) Buchanan Rd. (Railroad Ave. to Crestview Dr.) McFaul Dr. (at Buchanan Rd.) Buchanan Rd. (Tuscany Meadows subdivision) Meadowbrook Ave. (Stoneman Ave. to Fallenleaf Way) Civic Ave. (Davi St. to Railroad Ave.) Meadows Ave. (south of Buchanan Rd.) Cambria Ct. (to E. 8th St.) N. Parkside Dr. (to Railroad Ave.) Campbell Dr. (at Buchanan Rd.) Power Ave. (Andrew Ave. to Range Rd.) Capitola Pl. (to Cumberland St.) Railroad Ave. (10th St. to south city limits) Carion Ct. (to Loveridge Rd.) Range Rd. (Willow Pass Rd. to south terminus) Century Blvd. (E Leland Rd. to Somersville Rd.) San Marco Blvd. (Highway 4 to south terminus)

Davi Ave. (Civic Ave. to Power Ave.) Santa Ana Dr. (at Buchanan Rd.) Gladstone Dr. (Loveridge Rd. to Arlington Cir.) Santa Teresa Dr. (San Marco Blvd. to W. Leland Rd.) Harbor St. (E. 3rd St. to Stoneman Ave.) Suzanne Dr. (at Buchanan Rd.) Inverness Dr. (at Buchanan Rd.) Toscana Dr. (to Portofino Dr.) E. Leland Rd. (Railroad Ave. to Century Blvd.) Tuscany Meadows Dr. (at Buchanan Rd.) W. Leland Rd. (to Kapalua Bay Cir.) Valente Dr. (to Portofino Dr.) W. Leland Rd. (Southwood Dr. to San Marco Blvd.) Ventura Dr. (at Buchanan Rd.) W. Leland Rd. Extension (San Marco Blvd. to Santa Teresa Dr.) Ventura Dr. (south of Buchanan Rd.) Loveridge Rd. (Buchanan Rd. to Highway 4) Alves Ranch Rd. (W. Leland Rd. and Harmony St.)

4. Right-of-Way Landscaping

1050 Oak Point Dr. (pathway) Loveridge Rd. (Stoneman Ave. to Ventura Dr.) E. 3rd St. (Marina Blvd. to East St. tree wells) Marina Blvd. (at E. 5th St. - Lapori Building parking lot E. 8th St. (Harbor St. to Cumberland St.) Marina Blvd. (Bayside Dr. to Black Diamond. St.) W. 8th St. (mitigation project at Herb White Way) Oak Crest Pl. (fire trail) Alves Ranch Rd. (south of W Leland Rd.) N. Parkside Dr. (Range Rd. to PG&E lot) Bailey Rd. (W. Leland Rd. to city limit) Pittsburg-Antioch Hwy. (Arcy Ln. to Solari Ave.) Bayside Dr. (west) (Marina Blvd. to River Park Dr.) Pittsburg-Antioch Hwy. (Harbor Rd. to city limits) Buchanan Rd. (north) (Harbor St. to city limits) Polaris Dr. (Brickyard Ave. to Trident Dr.) Buchanan Rd. (south) (Quercas Ln. to east city limits) Power Ave (north) (Andrew Ave. to Brickyard Ave.) California Ave. (east of Loveridge Rd.) Quiet Path Pl.

Capitola Pl. (Capitola Dr. to Cumberland St.) Railroad Ave. (west) (Frontage Rd. to Alvarado Ave.) E. Catamaran Cir. (east) Railroad Ave. (California Ave. to E. 10th St.) Central Harbor Pkwy. (launch ramp and parking lot) Railroad Ave. (NE corner of E. 17th St.) Central Waterfront Basin III Railroad Ave. (east) (California Ave. to Victory Ave.) Cumberland St. (E. 3rd St. to E. 8th St.) Railroad Ave. & Buchanan Rd. (NW corner) Fairside Ct. Range Rd. (northern terminus to W. Leland Rd.) Fawn Glen Ct. Range Rd. (Willow Pass Rd. to southern terminus) Freshwater Ct. San Marco Blvd. (south of Highway 4)
Frontage Rd. (Burton Ave. to Crestview Dr.) 2246-2236 Santa Maria Dr. (west side) Frontage Rd. Living Green Trail (Dover Way to Chelsea Way) Santa Teresa Dr. (San Marco Blvd. to W Leland Ave.) Greystone Pl. and Stoneman Ave. Stoneman Ave. (Harbor St.) Harbor St. (E. Santa Fe Ave. to E. 3rd St.) Ventura Dr. (Buchanan Rd.) Kirker Pass Rd. and Castlewood Dr. (to city limits) Willow Ave. (Bailey Rd.) E. Leland Rd. (south) (Leland Ct. and Stoneridge Dr.) Willow Pass Rd. (Dory Rd. to west city limits) W. Leland Rd. (Arlington Dr. to Bailey Rd.) School St. (to Hawthorne Ave. both sides) W. Leland Rd. (Toscana Blvd. to Santa Teresa Dr.) Woodhill (from Burlwood Ct. to Shadow Hill Cir.) Buchanan Rd. (east of Meadows Ave.) W. Leland Rd. (Premier Fields) Siena Village Dr. (San Marco 16) Avellino Rd. (San Marco 17)

5. Feature Planting Bed Landscaping

Buchanan Park Entrance Sign and Planter Muniz Plaza
City Park Entrance Sign Oak Hills South Entry Monument
City Park Memorial Oak Hills Unit 5 (at Oakpoint Dr.)
Fisherman Monument Pelican Loop Entry (at Marina Blvd.) Fishing Boat Monument Plaza Fountain (E. 5th St. at Black Diamond St.) Harbor St. (at Presidio Ln.) Railroad Ave. (at Alvarado Ave.) E. Leland Rd. (at eastern city limit) Railroad Ave. (at 17th St.) Leland Rd. at Railroad Ave. Steel Worker State (Railroad Ave. at E. 5th St.) Marina Blvd. (at E. 4th St.) Raised Planter Beds (Railroad Ave., at E. 3rd St.)

Marina District Sign (E. 8th St. and Railroad Ave.) San Marco Blvd. (south of Highway 4) Meadows Ave. (South of Buchanan Rd.) Veterans & Camp Stoneman Memorial

3. ESTIMATE OF COSTS

3.1 Improvement Costs

The following table summarizes the budgeted costs to fund the improvements for FY 2026/27:

Description Amount(1)
Salary and Benefits (63.41% of total costs) 4,311,065 0 Professional and Consulting Services (4.36% of total costs) 296,400 0 Materials, Supplies, and Services (23.28% of total costs) 1,582,375 0 Cost Allocation (8.95% of total costs) 608,540 0
Total Cost of Improvements $6,798,380 0
Less General Benefit Portion (5.84% of total costs) (396,941) 0 Total Cost of Improvements to Be Assessed $6,401,439 0
Total Special Benefit Factors 34,367.25 0
Actual Cost Per Special Benefit Factor - FY 2026/27
Lighting and Landscaping 186.27 0
Assessed Rate Per Special Benefit Factor - FY 2026/27
Residential and Mixed Use 102.18 0
All Other Uses 77.18 0
City Subsidy Per Special Benefit Factor - FY 2026/27

Residential and Mixed Use 84.09 0
All Other Uses 109.09 0
(1) Slight variances may occur due to rounding.

3.2 Estimated Revenue

The following table summarizes the estimated revenue for FY 2026/27.

Description Amount
Assessments Posted to County Tax Roll 3,187,022 0
Assessment for City-owned & Parcels (General Fund) 57,871 0 Assessment for City-subsidized Parcels (General Fund) 71,566 0 General Benefit (General Fund) 396,941 0
Gap Funding (General Fund) 1,624,000 0
Total Estimated Revenue $5,337,400 0

The following table details the City-subsidized parcels.

Description Amount
Contra Costa County Junior College District 5,840 0
Pittsburg Unified School District 57,367 0
Mount Diablo Unified School District 2,646 0
State Board of Equalization Properties 5,713 0
Subtotal Estimated Revenue $71,566 0

3.3 Fund Balance

The reserve balance information for the District is as follows:

Total Estimated Year Ending June 30, 2026 Fund Balance $(418,046) 0

4. BENEFITS FROM IMPROVEMENTS

The improvements will confer special benefits upon certain parcels within the District. These special benefits created by the improvements are summarized in the table below:

Improvement Benefit
Street Lighting Improved Safety
Improved Accessibility
Street Trees and Other Landscaping Improved Aesthetics Increased Livability

5. QUANTIFICATION OF BENEFIT

The City may only assess property owners for that portion of the costs that provide a special and direct benefit to the properties located within the boundaries of the District. General benefits are not assessable, and the City must fund that portion of improvements that provides a general benefit to the public at large with some other funding source, such as the General Fund.

The 1972 Act does not specify a formula or method to use when determining the amount of general versus special benefit. The City Engineer is responsible for conducting the general versus special benefit analysis and then making a recommendation to the City Council, which makes the final determination. The general benefit analysis is summarized below.

5.1 Street Lighting

The City recognizes that a portion of the maintenance, operation, and servicing of the City’s streetlights on arterial streets that are funded by the District provides a general benefit to the public at large. Therefore, the City contribution to the District for any general benefits incurred by the maintenance, operation, and services on arterial roadways is estimated to be 3% of the operation and maintenance cost. This estimate was derived by determining the percentage of arterial roadway included in the District and multiplying that by the percent benefit assumed for traffic operations.

5.2 Street Trees and Other Landscaping

The District provides operation and maintenance for over 250 acres of City-owned neighborhood and community parks, and open space. For the purpose of calculating general benefit, it was assumed that casual park use by non-residents (park users not participating in a scheduled program) is de minimus because of the local nature of park use and the condition and popularity of parks in adjacent communities. Therefore, the general benefit derived for park and facility operation and maintenance is based solely on programs currently offered by the Pittsburg Recreation Department. It was estimated that 27% of the park area and facilities in the District have recreation programs offered. Based on data sampled, 30% of the participants registered for City recreation programs in the previous twelve months are non-residents.

5.3 Residential Benefit

For residential parcels, the measure of the intensity of land use is based on the number of dwelling units on a parcel. Multiple dwelling unit residences receive increased benefits as the number of units on a parcel increase. However, the incremental benefit per unit decreases as the number of units increase. In other words, a single-family home's benefit factor is 1.00, a condominium's benefit factor is 0.75, a four-plex's benefit factor is 2.95. A four-plex does not have four times the special benefit of a single-family home, but its benefit is larger than that of a single-family home. Each additional unit in a residential complex adds benefit but less benefit than the previous unit added.

5.4 Commercial and Industrial Benefit

For non-residential parcels, the intensity of use is based on the parcel's area and its frontage along public streets. Benefits from district improvements are estimated to rise with increasing parcel area and frontage. Once again, however, the incremental benefit per unit of area or frontage decreases with increasing parcel size or frontage.

Two separate land use categories are used for nonresidential parcels: "industrial" and "commercial/institutional". These two nonresidential categories are further divided according to whether a parcel is developed or vacant. The assessment methodology estimates that the benefit to a vacant parcel is fifty (50) percent of the benefit to a developed one. Parking lots are defined as vacant commercial/institutional parcels and are thus assessed at the fifty (50) percent benefit level.

5.5 Mathematical Benefit Calculation

The total benefit estimate for a given benefit measure can be calculated from formulas determined by the City Engineer that closely estimate the special benefit. Those formulas, charts denoting benefit given parcel use and size, and sample calculations are in Section 6 of this report.

6. METHOD OF APPORTIONMENT

Once special benefits are identified, they must be assigned based on the estimated proportionate special benefit derived by each parcel. This section describes the assignment of special benefit to each parcel.

6.1 Method

The City Engineer has developed and proposed an equitable method for distributing the costs of maintaining the District lighting and landscaping. That method:

• Determines the relative benefit received by each parcel based on type and intensity of land use.
• Derives a numerical expression to determine the special benefit (benefit factor) • Determines the cost for maintenance of the District improvements. • Derives an actual cost per unit of benefit (unit cost) by dividing the total estimated costs based on actual maintenance costs to cover all District costs by the total benefit factors. • Derives an applied assessment for each parcel based on an assessment per benefit factor of $102.18 for residential and mixed use parcels and $77.18 for all other uses. • Analyzes the actual costs per unit benefit for each parcel and the applied assessment for each parcel and calculates the difference between actual district costs and applied assessment.

The assessment method asserts that: 1) all assessable parcels in the District benefit from the improvements because they are similarly distributed throughout the District; 2) the benefit for each property varies according to the use of the property and the intensity of that use, and for a given intensity of use, similar land uses will derive similar benefits; 3) any subsidy currently provided by the City is based on the actual maintenance cost to the District.

Newly developed areas within the District will be assessed if a final map has been recorded and the parcel has been created by the date established by the County Assessor’s Office for inclusion on the Assessment Roll. Vacant residential parcels are currently not assessed.

Therefore, an assessment will be levied once a structure is declared final by the City of Pittsburg’s Building Division.

The establishment of the LLAD and its assessment methodology occurred prior to passage of Proposition 218. The provisions of Proposition 218 require that all parcels, including those that are owned by any agency (local, state, or federal), that benefit from the improvements within the District cannot be exempt from assessments “unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.” Proposition 218 also requires that all existing, new, or increased assessments comply with the provisions of Proposition 218. Therefore, after the passage of Prop. 218, the City began imposing assessments on public property to ensure conformance with state law.

6.2 Assessment by Land Use Category

The following table details the total assessments by land use category.

Category
Code
Land Use Category Parcel
Count
Benefit
Factors
Assessment
01 Single Family Residential 16,972 0 16,972.000 1,734,198.96 0 21 2 Units, Residential 410 0 610.08 0 62,336.40 0
22 3 Units, Residential 19 0 42.24 0 4,316.04 0
23 4 Units, Residential 67 0 197.78 0 20,209.88 0
24 Combo with More than 1 Residence 18 0 41.44 0 4,234.04 0 25 Multi-Family, 5 or More Residences 51 0 2,747.53 0 280,742.86 0 29 Condos, Co-ops, Clusters 396 0 2970 30,349.44 0
Subtotal Residential 0 17,933 0 20,908.070 2,136,387.620

25/60 Multi-Family/Commercial 5 0 312.2080 0 31,901.46 0 Subtotal Mixed Use 0 5 0 312.2080 0 31,901.46 0

39 Vacant Commercial & Institutional 63 0 535.470 41,327.86 0 50 Developed Industrial 200 0 5,111.540 394,509.58 0
59 Vacant Industrial 65 0 871.440 67,257.72 0
60 Developed Commercial & Institutional 362 0 6,015.540 464,281.50 0 71 Churches 52 0 2080 16,053.44 0
85 Parking Lots 53 0 372.980 28,787.16 0
90 Non-Profit Organizations 8 0 320 2,469.76 0
Subtotal Commercial, Institutional,
Industrial, Churches, Parking Lots,
and Non-Profit
803 0 13,146.970 1,014,687.02 0
Totals 0 18,741 0 34,367.25 0 3,182,976.10 0

For each land use category, Table 5 summarizes the number of parcels, the subtotal benefit factors, and the applied assessment per benefit factor. The applied assessment for residential land use, city category codes 01, 21, 22, 23, 24, 25 and 29, is $102.18 per benefit factor. All other parcels including commercial, institutional, industrial, churches, and non-profit pay $77.18 per benefit factor. This amount continues to be less than the actual maintenance expenditure to cover all district costs per benefit factor, which is $176.52 per Benefit Factor.

The city continues to subsidize residential uses and non-residential uses, which is consistent with the goals of City Council and the community to encourage economic development and create and maintain jobs in the City of Pittsburg. The resulting assessments for each parcel are listed on the assessment roll, incorporated by reference into this report and on file with the City Clerk’s office.

6.3 Calculation of Multi-Family Residential Assessment

The assessment for each parcel with a multi-family residential building is determined by multiplying the residential unit assessment ($102.18) by the parcel benefit factor. The parcel's benefit factor is determined by the number of dwelling units on the parcel. The Engineer uses one of two formulas for the benefit factor calculation, B1 or B2 (below). B1 is used to calculate

the benefit for twenty-five (25) or fewer residential units, and B2 is used for parcels with more than twenty-five residential units.

Below are 1) The formulas used to calculate the benefit factors, and 2) examples of the calculation. Using these formulas, we have constructed tables showing the number of residential units and the corresponding benefit factors.

Residential benefit factor calculation uses either:

Formula B1 = RO x M + (S1 ÷ 2) x M2 or
Formula B2 = RO x MB + (S1 ÷ 2) x MB2 + RB x (M-MB) + (S2 ÷ 2) x (M-MB)2;

Where,
M = Number of Dwelling Units
MB = 25
RO = 0.75
RB = 0.60
S1 = -0.006
S2 = -0.00038

Where,
B1 = benefit for a parcel with benefit measure falling within the first line segment of incremental benefit curve

B2 = benefit for a parcel with benefit measure falling within the second line segment of incremental benefit curve

M = benefit measure (e.g., number of dwelling units on a parcel)

MB = value of benefit measure at the point where two-line segments meet (e.g., number of dwelling units on a parcel)

RO = incremental benefit at benefit measure of 0 (i.e., the y-intercept for incremental benefit curve) (e.g., SFR/dwelling unit)

RB = incremental benefit at point where the two-line segments meet (e.g., dwelling unit number or parcel area or parcel frontage)

S1 = slope of first line segment of incremental benefit curve (e.g., dwelling unit number or parcel area or parcel frontage)

S2 = slope of second line segment of incremental benefit curve (e.g., dwelling unit number or parcel area or parcel frontage)

Substituting the above numbers for letters, the formulas may be simplified to read:

B1 = RO x M + (S1 ÷ 2) x M2
B1 = 0.75M - (0.006 ÷ 2) x M2
B1 = 0.75M - 0.003 x M2

B2 = RO x MB + (S1 ÷ 2) x MB2 + RB x (M-MB) + (S2 ÷ 2) x (M-MB)2 B2 = 0.75 x 25 - (0.006 ÷ 2) x 625 + 0.60 x (M-25) - (0.00038 ÷ 2) x (M-25)2 B2 = 18.75 - (0.003) x 625 + 0.60 x (M-25) - 0.00019 x (M-25)2 B2 = 18.75 - 1.875 + (0.60 x M) - 15 - 0.00019 x (M-25)2 B2 = 1.875 + 0.60M - 0.00019 x (M-25)2

Calculation examples are on the next page.

EXAMPLE 1. Find the benefit factors for a residential complex with sixteen (16) units.

16 units are less than twenty-five, so Formula B1 "RO x M + (S1 ÷ 2) x M2" is used. That formula has been simplified for this example.

B1 = 0.75M - 0.003 x M2
M = 16
B1 = (0.75)(16) - (0.003)(162)
B1 = 12 - 0.768
B1 = 11.232 Benefit Factors

The Assessment Amount = Benefit Factors Times the Unit Assessment The Assessment Amount = 11.232 x $102.18 = $1147.69 = $1147.70

EXAMPLE 2. Find the benefit factors for a residential complex with one hundred twenty units.

120 units are more than 25, so Formula B2 [RO x MB + (S1 ÷ 2) x MB2 + RB x (M-MB) + (S2 ÷ 2) x (M-MB)2] is used. That formula has been simplified for this example.

B2 = 1.875 + 0.60M - 0.00019 x (M-25)2
M = 120
B2 = 1.875 + 0.60 x 120 - 0.00019 x (120-25)2
B2 = 1.875 + 72 - 0.00019 x 9025
B2 = 73.875 - 1.71475
B2 = 72.160 Benefit Factors

The Assessment Amount = Benefit Factors Times the Unit Assessment The Assessment Amount = 72.160 x $102.18 = $7,373.31 = $7,373.32

6.4 Residential Benefit Factors

Number
Of Units
Benefit
Factors
Number
Of Units
Benefit
Factors
Number
Of Units
Benefit
Factors
2 3
4 5

1.488

2.223

2.952

3.675
54 55
56 57

34.115

34.704

35.292

35.880
106
107
108
109

64.228

64.797

65.366

65.934
6 7
8 9

4.392

5.103

5.808

6.507
58 59
60 61

36.468

37.055

37.642

38.229
110
111
112
113

66.502

67.070

67.637

68.204