Agenda packet — Roseville City Council, December 7, 2022 (part 8 of 8)

EXHIBIT A

CITY OF ROSEVILLE
PARKSIDE AT SIERRA VISTA COMMUNITY FACILITIES DISTRICT NO. 1 (PUBLIC FACILITIES)
Authorized Facilities
Improvements
Public roadway improvements designed to meet the needs of the project, including those improvements identified in the project Development Agreement (DA) Sections 3.5.17 and 3.5.18, including but not limited to;
• Federico Drive.
• Fiddyment Road.
• Market Street.
• Santucci Boulevard.
• Summerfaire Drive.
• Silver Spruce Drive.
• Sierra Glen Drive.
• Vista Park Drive.
• Vista Grande Boulevard.
• Westbrook Boulevard.

Eligible roadway improvements include the following items: acquisition of land and easements; roadway design; project management; geotechnical engineering, testing and observations, bridge crossings and culverts; clearing, grubbing, and demolition; grading, soil import/export, paving (including slurry seal), and decorative/enhanced pavement concrete or pavers; power pole relocations; joint trenches, underground utilities, and undergrounding of existing utilities; dry utilities and appurtenances; curbs, gutters, sidewalks, bike trails (including on- and off-site), park and ride facilities, bus rapid transit improvements, including transfer stations and regional public transit improvements; retaining walls, sound walls, enhanced fencing, and access ramps; street lights, signalization, and traffic signal control systems; bus turnouts; signs and striping; erosion control; median and parkway landscaping and irrigation; entry monumentation; bus shelters; masonry walls; traffic control and agency fees; and other improvements related thereto. Eligible improvements for the roads listed above also include any and all necessary underground potable and non-potable water, sanitary sewer, and storm drainage system improvements.

Exhibit A

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• Water lines in/associated with authorized facility roads. • Recycled water lines in/associated with authorized facility roads. • Well construction or financial contributions thereto on, but not limited to JM-60. • Water Tank Site Improvements (DA Section 3.8.2).
• Recycled Water Storage Tank Facility
• Reimbursement obligation for the Baseline Road 24” water line (DA Section 3.8.3). • CFD obligations for RW tank(s) required by DA Section 3.9.

Drainage System Improvements
Authorized facilities include any and all on- and off-site backbone drainage and storm drainage improvements designed to meet the needs of development of the project. These facilities include mains, pipelines and appurtenances, outfalls and water quality measures, temporary drainage facilities, detention/retention basins, and drainage pretreatment facilities; drainage ways/channels, pump stations, landscaping, and irrigation; access roads, gates, and fencing; striping and signage; and the following:
• All storm drain lines and facilities in/associated with authorized facility roadways. • Retention, detention, hydro-modification, and other drainage facilities. •
Wastewater System Improvements
Authorized facilities include any and all on- and off-site backbone wastewater facilities designed to meet the needs of development of the project. These facilities include pipelines and all appurtenances thereto; manholes; tie-in to existing main line; force mains; lift stations; odorcontrol facilities; sewer treatment plant improvements and permitting related thereto; and related sewer system improvements, including but not limited to:
• All wastewater facilities in/associated with authorized facility roadways.

Solid Waste Improvements
Authorized facilities include any and all backbone solid waste improvements designed to meet the needs of development of the project. Eligible improvements also include the project’s pro-rata contribution, as described in the project DA, to the Sierra Vista Specific Plan (SVSP) Solid Waste Recycling Center (DA Section 3.26(iii)).

Park, Landscape Corridor and Paseo Improvements
Authorized facilities include any and all improvements to parks, landscape corridors and paseos located in the project, including but not limited to:
• Construction of Park Sites as identified by the Specific Plan. • Construction of Paseos as identified by the Specific Plan.

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hawk/raptor mitigation, agricultural mitigation or wetland mitigation, property acquisition, endowment payments for open space management, landscaping and irrigation, access gates and fencing, and related open space improvements, including but not limited to:
• Improvements as identified by the Specific Plan.
• Wetland creation mitigation, fencing, etc.
•
Utilities
Authorized facilities include any and all on- and off-site utility improvements designed to meet the needs of development of the project. All utility improvements, easement payments, and land acquisition not located under or alongside transportation improvements are considered authorized facilities. Authorized facilities also shall include costs related to the acquisition of the off-site electric substation site; site clearing; grading; street frontage improvements, including curbs, gutters, and paving; and construction of an all-weather access road to the site from the nearest public street or extension of temporary 12kV overhead lines as described in the project DA, including but not limited to:
• SVSP Electric Substation site acquisition, and improvements required by DA Section

3.11.3. • Temporary overhead 12kV lines to loop SVSP substation to line in WRSP Phase 3 and

4. Other Public Facilities
Authorized facilities includes any and all public facilities or infrastructure, including the project’s pro-rata contribution to the land acquisition of the off-site fire station site, site clearing, grading, and street frontage improvements including curbs, gutters, and paving, including but not limited to:
• Fire Station site reimbursement obligations in DA Section 3.23.

Development Impact Fees
Authorized facilities include development impact fees paid and not otherwise reimbursed, whether standard City or County fees levied at the time of the issuance of a building permit or required as part of the DA for the property. Fees include, but are not limited to, the South Placer Regional Transportation Authority Tier II Traffic Fee, City of Roseville City Wide Park Fee, City of Roseville Public Facilities Fee, and Public Benefit Fee (as defined in Section 3.14.3 of the DA for the property).

Formation, Administrative, and Incidental Expenses
In addition to the above facilities, other expenses incidental to the above and authorized by the Mello-Roos Community Facilities Act of 1982, including but not limited to: the cost of planning, permitting, and designing the facilities (including the cost of environmental evaluation, orthophotography, environmental remediation/mitigation, and preparation of an overarching Operation and Maintenance Plan for the City of Roseville Open Space Preserves); land acquisition and easement payments for the facilities; project management; construction staking; engineering studies and reports; utility relocation and demolition costs incidental to construction of the facilities, wetland/Species mitigation purchase; reimbursements to other areas for Exhibit A

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infrastructure facilities or planning serving development in the CFD; Sierra Vista Specific Plan planning, legal, engineering, technical studies costs related to the facilities and any other expenses incidental to the construction, completion, and inspection of the facilities.

In addition, costs eligible to be financed by the CFD shall include all costs associated with the formation and ongoing administration of the CFD and issuance of bonds; determination of the amount of taxes and collection of taxes; inspection, plan check and other costs related to acceptance of the facilities by the City, payment of taxes; and any other costs incurred to carry out the authorized purposes of the CFD.

Economic & Planning Systems, Inc. (EPS) B-1

EXHIBIT B
City of Roseville
Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities)
Placer County, California

RATE, METHOD OF APPORTIONMENT, AND

MANNER OF COLLECTION OF SPECIAL TAX
1 . B a s i s o f S p e c i a l T a x L e v y
A Special Tax authorized under the Mello-Roos Community Facilities Act of 1982 (Act) applicable to the land in the Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities) (CFD) of the City of Roseville (City) shall be levied and collected according to the tax liability determined by the City through the application of the appropriate amount or rate, as described below.
2 . D e f i n i t i o n s
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map or other Development Plan.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, Sections 53311 and following of the California Government Code.
“Administrative Expenses” means the actual or reasonably estimated costs related to the administration of the CFD, including, but not limited to, these:
a. Costs of computing Special Taxes and preparing annual Special Tax collection schedules (whether by the City or any designee thereof or both).
b. Costs of collecting the Special Taxes (whether by the County, the City, or otherwise). c. Costs of remitting the Special Taxes to the Trustee. d. Costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Bond Indenture.
e. Costs to the City, CFD, or any designee thereof of complying with arbitrage rebate requirements.
f. Costs to the City, CFD, or any designee thereof of complying with City, CFD, or obligated persons disclosure requirements.

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit B September 26, 2022
Economic & Planning Systems, Inc. (EPS) B-2
g. Costs associated with preparing Special Tax disclosure statements. h. Costs incurred in responding to public inquiries regarding the Special Taxes. i. Costs to the City, CFD, or designee thereof related to any appeal of the Special Taxes. j. Costs associated with the release of funds from an escrow account, if any. k. Costs to the City for the issuance of Bonds authorized by the CFD that are not recovered through the Bond sale proceeds.
l. Amounts estimated to be advanced or already advanced by the City for any other administrative purposes, including attorney’s fees and other costs related to collection of the Special Taxes and commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
“Administrator” means a City official in the Finance Department, or their designee responsible for determining or overseeing the levy and collection of the Special Taxes. “Affordable Housing Director” means, at any point in time, the person in the City who serves as head of the department that is in charge of the City’s affordable housing program. “Affordable Unit” means a Unit built on a Residential Use Parcel for which an Affordable Unit agreement has been entered into for the property designating the Unit as affordable.

A Multifamily Parcel may have only a portion of the Units assigned as Affordable Units. The City Manager, or his or her designee, shall determine which Units are designated as Affordable Units and maintain an Affordable Unit listing, which shall contain all designated buildable parcels by tract and lot number, and in the case of Large Lot Parcels remaining before May 1 of the preceding Fiscal Year, the number of designated Affordable Units for each such Large Lot Parcel; all entries shall indicate the effective date of designation. The Affordable Unit listing also shall be updated to reflect those Units no longer qualifying as Affordable Units, also known as MarketRate Units. The Affordable Unit listing, which shall contain all qualifying Affordable Units as of April 30, shall be made available to the Administrator by July 1 of each year for purposes of determining the Maximum Annual Special Tax for Parcels pursuant to Section 4. “Annual Facilities Costs” means, for any Fiscal Year, the total of these:
a. Debt Service to be paid from Facilities Special Taxes. b. The amount needed to replenish the reserve fund for the Bonds to the level required under the Bond Indenture, to the extent not included in a computation of Annual Facilities Costs in a previous Fiscal Year.
c. Administrative Expenses for such Fiscal Year.
d. The amount needed to (1) cure any delinquencies in the payment of principal or interest on Bonds, which have occurred in the prior Fiscal Year, to the extent not otherwise included in a computation of Annual Facilities Costs in the current or any previous Fiscal Year, and (2) to fund any foreseeable deficiency of the amount to be available for the payment of principal or interest on Bonds, which are expected to occur in such Fiscal Year, to the extent not included in a computation of Annual Facilities Costs in the current or any previous Fiscal Year.

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit B September 26, 2022
Economic & Planning Systems, Inc. (EPS) B-3
e. The amount needed to (1) cure any delinquencies in the payment of the Facilities Special Tax in the prior Fiscal Year, to the extent not otherwise included in a computation of Annual Facilities Costs in the current or any previous Fiscal Year, and (2) to fund any foreseeable deficiency in the payment of the Facilities Special Tax for that Fiscal Year which is expected to occur in such Fiscal Year, to the extent not included in a computation of Annual Facilities Costs in the current or any previous Fiscal Year.
f. Authorized Pay-As-You-Go Costs.
g. During the Deferral Bonding Period, the amount needed to pay Development Impact Fee Deferrals not financed by Bonds.
h. Less any available earnings on any reserve fund or Facilities Special Tax funds, available capitalized interest or any other available revenues of the CFD or the City that may be used to fund Annual Facilities Costs.
“Annual Maintenance Costs” means, for any Fiscal Year, the total of these:
a. Authorized Services costs to be paid from Maintenance Special Taxes. b. Administrative Expenses for such Fiscal Year.
c. The amount needed to (1) cure any delinquencies in the payment of the Maintenance Special Tax in the prior Fiscal Year, to the extent not otherwise included in a computation of Annual Maintenance Costs in the current or any previous Fiscal Year, and (2) to fund any foreseeable deficiency in the payment of the Maintenance Special Tax for that Fiscal Year which is expected to occur in such Fiscal Year, to the extent not included in a computation of Annual Maintenance Costs in the current or any previous Fiscal Year. d. Less any available earnings on any reserve fund, Maintenance Special Tax funds or any other available revenues of the CFD or the City that may be used to fund Annual Maintenance Costs.
“Assessor’s Parcel” means a lot or Parcel with an assigned Assessor’s Parcel Number in the maps used by the County Assessor in preparing the tax roll. “Assessor’s Parcel Map” means an official map of the County Assessor designating Parcels by Assessor’s Parcel Number.
“Assessor's Parcel Number” means the Parcel and Parcel Number as assigned by the County Assessor on the equalized tax roll.
“Assigned Maximum Annual Special Tax” means the maximum Facilities Special Tax or Maintenance Special Tax assigned to each Large Lot Parcel that is an Original Parcel based on the Expected Land Uses at CFD formation, or at annexation, as shown in Attachment 1. “Authorized Facilities” means those facilities and fees to be financed, as identified in the resolution forming the CFD.
“Authorized Services” means those services authorized to be funded, as defined in the resolution forming the CFD.

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit B September 26, 2022
Economic & Planning Systems, Inc. (EPS) B-4
“Base Year” means the Fiscal Year beginning July 1, 2023 and ending June 30, 2024. “Bond(s)” means any bond(s) issued by the City for the CFD under the Act and any other debt, as defined in the Act, the City incurs to further the CFD’s purposes. “Bond Indenture” means the indenture, resolution, fiscal agent agreement, or other financing document pursuant to which any Bonds are issued.
“Building Permit” means a permit issued by the City for the construction of a Residential Use or Nonresidential Use structure.
“CFD” means the Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities) of the City of Roseville, Placer County, California.
“City” means the City of Roseville in Placer County, California. “Council” means the City Council of the City acting for the CFD under the Act. “County” means the County of Placer, California.
“Debt Service” means the total annual amount of Bond principal, interest, and the scheduled sinking fund payments of the Bonds in a calendar year.
“Deferral Bonding Period” means the period after the Initial Bonding Period has ended and during which the City finances the Development Impact Fee Deferral. “Developed Parcel” means, in any Fiscal Year:
a. For Single-Family Parcels: All Parcels for which a Final Small Lot Subdivision Map was recorded before May 1 of the preceding Fiscal Year.
b. For Multifamily Parcels: All Parcels for which a Building Permit for new construction of a Residential Use structure was issued before May 1 of the preceding Fiscal Year. c. For all Nonresidential Use Parcels: All Parcels for which a Building Permit for new construction of a Nonresidential Use structure was issued before May 1 of the preceding Fiscal Year.
“Development Agreement” means the Development Agreement By and Between the City of Roseville and Mourier Investments, LLC, relative to the Sierra Vista Specific Plan dated April 28, 2010.
“Development Impact Fee Deferral” means the deferred payment of development impact fees due to the City or the South Placer Regional Transportation Authority (SPRTA) for Developed Parcels, using the approach and amounts identified in the Development Agreement, which may be amended from time to time.
“Development Plan” means a condominium plan, apartment plan, site plan, or other development plan that identifies such information as the type of structure, acreage, square footage, or number of Units that are approved to be developed on Single-Family Parcels, Multifamily Parcels, and Nonresidential Parcels.

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit B September 26, 2022
Economic & Planning Systems, Inc. (EPS) B-5
“Expected Land Use(s)” means the total number of Units or Acres of each land use type by Tax Category expected in each Large Lot Parcel and Original Parcel at CFD formation as identified in Attachment 3 of this RMA.
“Facilities Special Tax” means the Special Tax authorized to fund Annual Facilities Cost.

Facilities Special Taxes are shown in Attachments 2 and 3. “Final Use Small Lot Parcel” means a Parcel designated for development as a single-family residence, which is part of a Final Small Lot Subdivision Map. “Final Small Lot Subdivision Map” means a recorded map designating the final Parcel subdivision for individual Single-Family Parcels.
“Finance Director” means the Finance Director for the City, or their designee. “First Home Sale Trigger Event” means a change in ownership of any Parcel with a Building Permit for Residential Uses from the Master Developer to a third party. “Fiscal Year” means the period starting July 1 and ending the following June 30. “Full Prepayment” means the complete fulfillment of a Parcel’s Facilities Special Tax obligation, as determined by following the procedures in Section 8. “High Density Residential” means, per the Sierra Vista Specific Plan, a land use designation that primarily accommodates attached housing, but depending on the unit type, could also include detached housing, within the density range of 13.0 or greater dwelling units per gross developable acre. Typical housing product types include, but shall not be limited to, detached townhomes, courtyard townhomes/condominiums, garden-style apartments, and podium design apartments/condominiums.
“Initial Bonding Period” means 30 years from the issuance of the first Building Permit or First Home Sale Trigger Event, whichever is earlier.
“Initial Special Tax Levy” means the Special Tax levy that will occur in the Fiscal Year following the Fiscal Year in which the first Home Sale occurs. “Large Lot Parcel” means a Parcel created by a Large Lot Subdivision Map. “Large Lot Subdivision Map” means a recorded subdivision map creating Parcels by land use.

However, the Large Lot Subdivision Map does not delineate Single-Family Parcels. A Final Small Lot Subdivision Map will create individual Single-Family Parcels. “Low Density Residential” means, per the Sierra Vista Specific Plan, a land use designation that supports single-family detached homes on conventional lots within the density range of up to 6.9 dwelling units per gross developable acre. Typical housing product types include, but shall not be limited to, standard, alley-loaded, or clustered, single-family detached units. “Maintenance Special Tax” means the Special Tax authorized to fund Annual Maintenance Costs. The Maintenance Special Tax will be levied and collected beginning with the Transition Year. Maintenance Special Taxes are shown in Attachment 4. “Market-Rate Unit” means a Unit that is not an Affordable Unit.

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit B September 26, 2022
Economic & Planning Systems, Inc. (EPS) B-6
“Master Developer” means FD-24 LLC, or any affiliate of FD-24 LLC, that will own and rent Developed Parcels initially after the formation of the CFD. “Maximum Annual Special Tax” means the greatest amount of Facilities Special Tax or Maintenance Special Tax that can be levied against a Parcel in a given Fiscal Year, as shown in Attachments 2, 3, and 4.
“Maximum Annual Facilities Special Tax” means the greatest amount of Facilities Special Tax that can be levied against a Parcel in a given Fiscal Year, as shown in Attachments 2, 3, or 4. “Maximum Annual Maintenance Special Tax” means the greatest amount of Maintenance Special Tax that can be levied against a Parcel in a given Fiscal Year, as shown in Attachments 2, 3, or 4.
“Maximum Annual Special Tax Rate” means the rate of Facilities Special Tax or Maintenance Special Tax charged per Unit or per Taxable Acre, as shown in Attachments 2, 3, and 4. “Maximum Annual Facilities Special Tax Revenue” means the greatest amount of Facilities Special Tax revenue that can be collected in total from a group of Parcels (such as Developed Parcels) by levying the Maximum Annual Facilities Special Tax. “Maximum Annual Maintenance Special Tax Revenue” means the greatest amount of Maintenance Special Tax revenue that can be collected in total from a group of Parcels (such as Developed Parcels) by levying the Maximum Annual Maintenance Special Tax. “Maximum Annual CFD Special Tax Revenue” means the sum of the Maximum Annual Special Tax levied on all Taxable Parcels in the CFD in a Fiscal Year. “Medium Density Residential” means, per the Sierra Vista Specific Plan, a land use designation that accommodates both single-family detached homes and attached homes within the density range of 7.0 to 12.9 dwelling units per gross developable acre. Typical housing product types include, but shall not be limited to, standard or alley-loaded lots, courtyard lots, green court lots, auto courts, alley clusters, zero-lot lines, or z-shaped lots. In addition, duet/half-plex homes, townhomes, or condominiums may be accommodated in Medium Density Residential areas.
“Nonresidential Use” means a Taxable Parcel zoned for land uses other than Residential Uses which may include Business Professional, Community Commercial and Mixed Use. “Original Parcel” means a Taxable Parcel identified in Attachment 1 at formation of the CFD. “Parcel” means any Assessor’s Parcel in the CFD based on the equalized tax rolls of the County as of January 1 of each Fiscal Year.
“Partial Prepayment” means the partial fulfillment of a Parcel’s Facilities Special Tax obligation, as determined by following the procedures in Section 8. “Pay-As-You-Go Costs” means that portion of costs of acquisition, construction, and improvement of Authorized Facilities not financed by Bonds. “Prepayment” means the full or partial fulfillment of a Parcel’s Facilities Special Tax obligation, as determined by following the procedures in Section 8.

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit B September 26, 2022
Economic & Planning Systems, Inc. (EPS) B-7
“Proportionately” means that the ratio of the actual Special Tax levy to the Maximum Annual Special Tax is equal for all Developed Parcels. For Small Lot Tentative Map Parcels, Proportionately means that the ratio of the actual Special Tax levy to the Maximum Annual Special Tax is equal for all Small Lot Tentative Map Parcels. For Large Lot Parcels, Proportionately means that the ratio of the actual Special Tax levy to the Maximum Annual Special Tax is equal for all Large Lot Parcels. For Undeveloped Parcels, Proportionately means that the ratio of the actual Special Tax levy to the Maximum Annual Special Tax is equal for all Undeveloped Parcels.
“Public Parcel” means any Parcel that is or is intended to be publicly owned, as designated in any final map, that is normally exempt from the levy of general ad valorem property taxes under California law, including, but not limited to, public streets, schools, parks, and public drainageways, landscaping, wetlands, greenbelts, and open space. “Remainder Parcel” means a portion of a unit of land that is created as a result of the recording of a Large Lot Parcel Map or Final Small Lot Subdivision Map, which results in a designated remainder as defined in Government Code Section 66424.6(a) (Remainder Parcel).

Such a Remainder Parcel may contain taxable and tax-exempt uses, such as Residential Uses, and Public Parcels, such as park sites. Once designated as a Remainder Parcel, such Parcel will be considered a Large Lot Parcel for the purposes of future Subdivisions and for the provisions of Sections 4 through 6.
“Residential Use” means a Parcel designated for residential use, such as single-family residential Units, residential condominiums, townhouses, or apartments that would be included in the definitions of Low-Density Residential, Medium Density Residential or High Density Residential.
“RMA” means this Rate and Method of Apportionment, and Manner of Collection of Special Tax, as it may be amended from time to time in connection with Annexation Parcels or otherwise. “Single-Family Parcel” means, in any Fiscal Year, all Parcels in the CFD for which a building permit was issued or may be issued for construction of a Unit that is a single-family residential, residential condominium, or townhouse Unit.
“Small Lot Tentative Map” means a map that is approved by the City for the purpose of showing the design of a proposed Subdivision, including the individual buildable lots expected in the Subdivision, as well as the conditions pertaining thereto. A Small Lot Tentative Map is not based on a detailed survey of the property in the map and is not recorded at the County Recorder’s Office to create legal lots.
“Small Lot Tentative Map Parcel” means, in any Fiscal Year, all Parcels included in a Small Lot Tentative Map that was approved before May 1 of the prior Fiscal Year and which have not yet become a Developed Parcel.
“Special Tax(es)” mean(s) any tax levy under the Act in the CFD. “Subdivision” or “Subdivided” means a division of a Parcel into two or more Parcels through Parcel reconfiguration, lot-line adjustments, or the Subdivision Map Act process. A Subdivision also may include the merging of two or more Parcels to create new Parcels.

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit B September 26, 2022
Economic & Planning Systems, Inc. (EPS) B-8
“Successor Parcel” means a Parcel created by the Subdivision of an Original Parcel or a Successor Parcel.
“Tax Category” means the categories of taxable land uses shown in Attachments 2 and 4. “Tax Collection Schedule” means the document prepared by the Administrator for the County Auditor-Controller to use in levying and collecting the Special Taxes each Fiscal Year. “Tax Escalation Factor” means a factor of 2 percent by which the Maximum Annual Facilities Special Tax, Maximum Annual Maintenance Special Tax and related Maximum Annual Special Tax Rates shall be increased annually until the Transition Event. After the Transition Event, the Maximum Annual Maintenance Special Tax may be increased up to 2 percent annually at the City’s discretion. The Administrator should refer to Section 4a for application of the Tax Escalation Factor.
“Taxable Acreage” means that area of a Parcel determined by the Administrator to become a Taxable Parcel or Parcels upon further Subdivision. An example might be that a Large Lot Parcel Map creates a Remainder Parcel that, according to Attachment 1, contains both taxable uses and tax-exempt uses.
“Taxable Parcel” means any Parcel that is not a Tax-Exempt Parcel. “Tax-Exempt Parcel” means a Parcel not subject to the Annual Special Tax. Tax-Exempt Parcels include (a) Public Parcels, and (b) Parcels owned by the City, school districts, special districts, or the state or federal government. A Taxable Parcel that is acquired by a public agency, the Parcel shall remain a Taxable Parcel as per the provisions of Section 4.f.

Certain privately-owned Parcels also may be exempt from the levy of Annual Special Taxes, including common areas owned by homeowner’s associations or property owner associations, wetlands, detention basins, water quality ponds, and open space, as determined by the Administrator.
“Transition Event” means the earlier of (a) after the Initial Bonding period, the Fiscal Year in which the Administrator determines the Development Impact Fee Deferral has been repaid in full to the City and City determines funding is no longer needed for Annual Facilities Costs, or (b) Fiscal Year 2087-88.
“Transition Year” means the first Fiscal Year following the Fiscal Year in which the Transition Event occurred.
“Trustee” means a national banking association organized and existing under the laws of the United States acting as a trustee or fiscal agent for Bonds. “Undeveloped Parcel” means a Taxable Parcel that is not a Developed Parcel, Small Lot Tentative Map Parcel, or a Large Lot Parcel.
“Unit” means, for a Single-Family Parcel, the individual residential unit on such Parcel, or for a Multifamily For-Rent Parcel or Multifamily For-Sale Parcel, an individual residential unit in a multifamily building.

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit B September 26, 2022
Economic & Planning Systems, Inc. (EPS) B-9
3 . D u r a t i o n o f t h e S p e c i a l T a x
The Facilities Special Tax will be levied and collected until the earlier of (i) the Transition Year or (ii) Fiscal Year 2087-88. The Maintenance Special Tax will be levied and collected beginning in the Transition Year. The Maintenance Special Tax will be collected in perpetuity. 4 . A dm i n i s t r a t i v e T a s k s f o r t h e F a c i l i t i e s S p e c i a l Ta x
Tasks required of the Administrator are discussed below:
a. Annual Special Tax Escalation. Until the Transition Event, the Administrator shall increase the Maximum Annual Facilities Special Tax, the Maximum Annual Maintenance Special Tax and Maximum Annual Special Tax Rates by the Tax Escalation Factor in all Fiscal Years following the Base Year. After the Transition Event, the City, in its sole discretion, may determine whether to apply the Tax Escalation Factor to the Maximum Annual Maintenance Special Tax in any Fiscal Year.
b. Assignment of the Maximum Annual Facilities Special Tax to Original Parcels. Attachment 3 identifies the Assigned Maximum Annual Facilities Special Tax for each Original Parcel at CFD formation, which is determined for each Large Lot Parcel based on the Expected Land Uses in each Large Lot Parcel at CFD Formation. The Assigned Maximum Annual Facilities Special Tax shall continue to apply to the geographic area to which it was assigned. If, before further Subdivision, the Administrator determines there are multiple Assessor’s Parcels in a Large Lot Parcel, the Administrator shall assign the Maximum Annual Facilities Special Tax to each Assessor’s Parcel on a pro rata basis to all Assessor’s Parcels in that Large Lot Parcel based on the percentage share of Taxable Acreage identified for each Assessor’s Parcel.

Similarly, if the Administrator determines there are multiple Large Lot Parcels in an Assessor’s Parcel, the Maximum Annual Facilities Special Tax shall equal the sum of the Assigned Maximum Annual Facilities Special Tax for all Large Lot Parcels in that Assessor’s Parcel.
c. Assignment of the Maximum Annual Facilities Special Tax to Successor Parcels. As Original Parcels and Successor Parcels are Subdivided through creation of Final Small Lot Subdivision Maps, lot line adjustments or other Parcel amendments through the Subdivision Map Act process, the Administrator shall use the following steps to assign the Maximum Annual Facilities Special Tax to new Successor Parcels. As a result of each assignment of the Maximum Annual Facilities Special Tax upon Subdivision of an Original Parcel or Successor Parcel, the sum of the Maximum Annual Facilities Special Taxes assigned to the newly created Taxable Parcels shall never be less, but may be greater, than the Assigned Maximum Annual Facilities Special Tax for that Original Parcel or Successor Parcel.

1. If an Original Parcel or Successor Parcel is Fully Subdivided into Single-Family Parcels with No Remainder Parcel(s). There shall be no net loss of Maximum CFD Special Tax Revenue as a result of the assignment of the Maximum Annual Facilities Special Tax to Single-Family Parcels. The Administrator shall use the following procedures to assign the Maximum Annual Facilities Special Tax to Single-Family Parcels. All references to Maximum Annual Facilities Special Taxes in the attachments are subject to application by the Tax Escalation Factor by the Administrator:

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit B September 26, 2022
Economic & Planning Systems, Inc. (EPS) B-10
A. Multiply the Maximum Annual Facilities Special Tax per Unit by Tax Category from Attachment 2 by the number of Units for each Single-Family Parcel created by the Subdivision. Sum the Maximum Annual Facilities Special Taxes for all Single-Family Parcels created by the Subdivision.

B. If the sum of Maximum Annual Facilities Special Taxes calculated in Step 4.c.1.A above is equal to or greater than the Assigned Maximum Annual Facilities Special Tax for the Original or Successor Parcel that was Subdivided, assign the Maximum Annual Facilities Special Tax per Unit by Tax Category as calculated in Step 4.1.c.A above to each Single-Family Parcel created by the Subdivision.

C. If the sum of Maximum Annual Facilities Special Taxes calculated in Step 4.c.1.A above is less than the Assigned Maximum Annual Facilities Special Tax for the Original or Successor Parcel that was Subdivided, unless 100 percent of the Units are designated Affordable Units, (i) assign the Maximum Annual Facilities Special Tax for Affordable Units shown in Attachment 2 to each Affordable Unit (if any) and, (ii) Proportionately increase the Maximum Annual Facilities Special Tax per Unit for all Units that are not Affordable Units until the sum of resulting Maximum Annual Facilities Special Taxes from all Units (including Affordable Units) equals the Assigned Maximum Annual Facilities Special Tax for the Original or Successor Parcel that was Subdivided. Assign the Maximum Annual Facilities Special Tax calculated in this step to each new Single-Family Parcel created by the Subdivision.

D. If the sum of Maximum Annual Facilities Special Taxes calculated in Step 4.c.1.A above is less than the Assigned Maximum Annual Facilities Special Tax for the Original or Successor Parcel that was Subdivided and if 100 percent of the SingleFamily Parcels created by Subdivision are designated as Affordable Units, increase Proportionately the Maximum Annual Facilities Special Tax per Unit for each Affordable Unit until the sum of Maximum Annual Facilities Special Taxes from all Affordable Units on the new Single-Family Parcels created by the Subdivision equal the Assigned Maximum Annual Facilities Special Tax for the Original or Successor Parcel that was Subdivided. Assign the Maximum Annual Facilities Special Tax calculated in this step to each new Single-Family Parcel created by the Subdivision.

2. If Original or Successor Parcel Is Subdivided into Single-Family Parcels and One or More Remainder Parcels. When an Original or Successor Parcel is Subdivided into SingleFamily Parcels and one or more Large Lot Parcels (or Remainder Parcels), the Assigned Maximum Annual Facilities Special Tax is apportioned to the Single-Family Parcels and Large Lot Parcels created by the Subdivision in the following manner:

A. Apportion the Assigned Maximum Annual Facilities Special Tax to the area(s) that is/are being Subdivided into Single-Family Parcels and to the area(s) that will be Remainder Parcel(s) on a pro rata basis, based on the percentage share of Taxable Acreage represented by each such area as compared to the total area of the Original or Successor Parcel.

B. For each area Subdivided into Single-Family Parcels, multiply the Maximum Annual Facilities Special Tax per Unit by Tax Category from Attachment 2 by the number of Units for each Single-Family Parcel created by the Subdivision. Sum the Maximum Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit B September 26, 2022
Economic & Planning Systems, Inc. (EPS) B-11
Annual Facilities Special Taxes for all Single-Family Parcels created by the Subdivision.

C. For each area Subdivided into Single-Family Parcels, if the sum of Maximum Annual Facilities Special Taxes calculated in Step 4.c.2.B above is equal to or greater than the Assigned Maximum Annual Facilities Special Tax apportioned to that area of the Original or Successor Parcel that was Subdivided into Single-Family Parcels, assign the Maximum Annual Facilities Special Tax per Unit by Tax Category as calculated in Step 4.c.2.B above to each Single-Family Parcel created by the Subdivision.

D. For each area Subdivided into Single-Family Parcels, if the sum of Maximum Annual Facilities Special Taxes calculated in Step 4.c.2.B above is less than the Assigned Maximum Annual Facilities Special Tax apportioned to that area of the Original or Successor Parcel that was Subdivided into Single-Family Parcels, unless 100 percent of the Units are designated Affordable Units, (i) assign the Maximum Annual Facilities Special Tax for Affordable Units shown in Attachment 2 to each Affordable Unit (if any) and, (ii) Proportionately increase the Maximum Annual Facilities Special Tax per Unit for all Units that are not Affordable Units until the sum of resulting Maximum Annual Facilities Special Taxes from all Units (including Affordable Units) equals the Assigned Maximum Annual Facilities Special Tax apportioned to that area of the Original or Successor Parcel that was Subdivided into Single-Family Parcels. Assign the Maximum Annual Facilities Special Tax calculated in this step to each new SingleFamily Parcel created by the Subdivision.

E. For each area Subdivided into Single-Family Parcels, if the sum of Maximum Annual Facilities Special Taxes calculated in Step 4.c.2.B above is less than the Assigned Maximum Annual Facilities Special Tax apportioned to that area of the Original or Successor Parcel that was Subdivided into Single-Family Parcels and if 100 percent of the Single-Family Parcels created by Subdivision are designated as Affordable Units, increase Proportionately the Maximum Annual Facilities Special Tax per Unit for each Affordable Unit until the sum of Maximum Annual Facilities Special Taxes from all Affordable Units on the new Single-Family Parcels created by the Subdivision equal the Assigned Maximum Annual Facilities Special Tax apportioned to that area of the Original or Successor Parcel that was Subdivided into Single-Family Parcels. Assign the Maximum Annual Facilities Special Tax calculated in this step to each new SingleFamily Parcel created by the Subdivision.

F. For the Remainder Parcel or Parcels, identify the Maximum Annual Facilities Special Tax for the entire Original or Successor Parcel that has been Subdivided. Sum the Maximum Annual Facilities Special Tax for all Single-Family Parcels created by the Subdivision, including Single-Family Parcels with Affordable Units. Subtract the sum of the Maximum Annual Facilities Special Tax for all Single-Family Parcels from the Assigned Maximum Annual Facilities Special Tax for the Original or Successor Parcel being subdivided and compare it to the Maximum Annual Facilities Special Tax assigned to the Remainder Parcel or Parcels in Step 4.c.2.A. Assign to each Remainder Parcel, the lesser of the calculations in this step or in Step 4.c.2.A, but in no event less than the difference between the previously Assigned Maximum Annual Facilities Special Tax for the Original Parcel or Successor Parcel being Subdivided and Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit B September 26, 2022
Economic & Planning Systems, Inc. (EPS) B-12
the total of the Maximum Annual Facilities Special Tax for all Single-Family Parcels created by such Subdivision.

Once designated as a Remainder Parcel, such Parcel will be considered a Large Lot Parcel for the purposes of future Subdivisions and for the provisions of Sections 4 through 6.

3. If an Original or Successor Parcel is Subdivided creating multiple land uses and Tax Categories or for any rezones of land uses on Original or Successor Parcels:

A. Identify the Assigned Maximum Annual Facilities Special Tax for the Original Parcel or Successor Parcel that is being Subdivided or rezoned.

B. For each Taxable Parcel subject to rezone or created by Subdivision multiply the Maximum Annual Facilities Special Tax per Unit or per Acre by the number of Units or by the number of Acres by the appropriate Tax Category. For each Taxable Parcel created by Subdivision that includes Affordable Units, multiply the number of Affordable Units by the Tax per Unit for such Affordable Units.

C. Sum the Maximum Annual Facilities Special Tax for each Taxable Parcel and compare it to the Assigned Maximum Annual Facilities Special Tax of the Original or Successor Parcel that is subject to rezone or is being Subdivided. If the sum of Maximum Annual Facilities Special Tax for each Taxable Parcel is greater than the Assigned Maximum Annual Facilities Special Tax for the Original Parcel, the Administrator shall apply the Maximum Annual Facilities Special Tax calculated above for each Taxable Parcel.

D. If the Assigned Maximum Annual Facilities Special Tax for the Original Parcel or Successor Parcel subject to rezone or that is being subdivided is greater than the sum of Maximum Annual Facilities Special Tax for each Successor Parcel being created, increase Proportionately the Maximum Annual Facilities Special Tax per Unit or per Acre for all Tax Categories on each Taxable Parcel such that the sum of Maximum Annual Facilities Special Tax for all Taxable Parcels equals the Assigned Maximum Annual Facilities Special Tax for the Original Parcel.
d. Affordable Units that Become Market-Rate Units. If, in any Fiscal Year, the City Manager, or his or her designee, determines that a Unit that previously had been designated as an Affordable Unit no longer qualifies as such, the Affordable Housing Director shall update the Affordable Unit listing by denoting the change in status of the Unit, together with the effective date thereof. For all Affordable Units that are converted to Market-Rate Units, such Units shall be assigned the Maximum Annual Facilities Special Tax per Unit based on their Tax Category as shown in Attachment 2, as adjusted by the Tax Escalation Factor. e. Conversion of a Tax-Exempt Parcel to a Taxable Parcel. If a Tax-Exempt Parcel is not needed for public use and is converted to a taxable use or transferred to a private owner, it shall become subject to the Facilities Special Tax. The Maximum Annual Facilities Special Tax for the newly Taxable Parcel will be determined using the provisions of Sections 4 and 5 of the RMA.
f. Taxable Parcels Acquired by a Public Agency. A Taxable Parcel that is acquired by a public agency after the CFD is formed will remain subject to the applicable Special Tax unless the Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit B September 26, 2022
Economic & Planning Systems, Inc. (EPS) B-13
Special Tax obligation is satisfied pursuant to Section 53317.5 of the Government Code.

An exception to this may be made if a Public Parcel, such as a park site, is relocated to a Taxable Parcel, in which case the previously Tax-Exempt Parcel of comparable acreage becomes a Taxable Parcel and the Maximum Annual Facilities Special Tax from the previously Taxable Parcel is transferred to the new Taxable Parcel. This trading of a Parcel from a Taxable Parcel to a Public Parcel will be permitted to the extent there is no net loss in Maximum Annual CFD Special Tax Revenue and the transfer is agreed to by the owners of the Parcels involved in the transfer and the Finance Director. 5 . A dm i n i s t r a t i v e T a s k s f o r t h e M a i n t e n a n c e S p e c i a l Ta x
This section discusses the administrative tasks for the Maintenance Special Tax, which shall be applicable after the Transition Event.

Tasks required of the Administrator are discussed below:
a. Assignment of the Maximum Annual Maintenance Special Tax to Developed Parcels. After the Transition Event, the Administrator shall assign the Maximum Annual Maintenance Special Tax to all Developed Parcels using the Maximum Annual Special Tax Rates for the Maintenance Special Tax by Tax Category shown in Attachment 4, as adjusted by the Tax Escalation Factor.
b. Assignment of the Maximum Annual Maintenance Special Tax to Successor Parcels. After the Transition Event, if Original Parcels and Successor Parcels are Subdivided through creation of Final Small Lot Subdivision Maps, lot line adjustments or other Parcel amendments through the Subdivision Map Act process, the Administrator shall use the steps in Section 4.c to assign the Maximum Annual Maintenance Special Tax to new Successor Parcels. When applying Section 4.c after the Transition Event, the Administrator shall substitute Maintenance Special Tax for Facilities Special Tax and shall substitute Maximum Annual Maintenance Special Tax for Maximum Annual Facilities Special Tax. c. Assignment of the Maximum Annual Maintenance Special Tax to Annexation Parcels. If Parcels are annexed to the CFD after formation, the Maximum Annual Maintenance Special Tax shall be assigned to these Annexation Parcels using the definitions in Section 2 and the Maximum Annual Maintenance Special Tax per Unit or Acre shown in Attachment 4 as adjusted by the Tax Escalation Factor applied by the Administrator, unless the Annexation Parcels are annexed with a new set of Maximum Annual Maintenance Special Taxes.

Attachment 1 may be amended, or a new attachment created, to include the Annexation Parcels and, if necessary, the applicable tax rates. If new Maximum Annual Maintenance Special Taxes are created, Attachment 4 should be amended to reflect the Maximum Annual Maintenance Special Taxes for the Annexation Parcels. Once annexed, these annexed Parcels shall be considered Original and Successor Parcels and will be subject to the same procedures for assignment of the Maximum Annual Maintenance Special Tax to Successor Parcels described in this section. The owner of the Annexation Parcels shall be responsible for paying all costs associated with annexing the Annexation Parcels to the CFD, but otherwise shall not be required to pay any other charge, fee or catch-up special tax in Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit B September 26, 2022
Economic & Planning Systems, Inc. (EPS) B-14
connection with or as a condition of such annexation unless otherwise agreed to by the owner of the Annexation Parcel in connection with the annexation. d. Affordable Units that Become Market-Rate Units. If, in any Fiscal Year, the City Manager, or his or her designee, determines that a Unit that previously had been designated as an Affordable Unit no longer qualifies as such, the Affordable Housing Director shall update the Affordable Unit listing by denoting the change in status of the Unit, together with the effective date thereof. For all Affordable Units that are converted to Market-Rate Units, such Units shall be assigned the Maximum Annual Maintenance Special Tax per Unit based on their Tax Category as shown in Attachment 4, as adjusted by the Tax Escalation Factor. e. Conversion of a Tax-Exempt Parcel to a Taxable Parcel. If a Tax-Exempt Parcel is not needed for public use and is converted to a taxable use or transferred to a private owner, it shall become subject to the Maintenance Special Tax. The Maximum Annual Maintenance Special Tax for the newly Taxable Parcel will be determined using the provisions of Sections 5 and 6 of the RMA.
f. Taxable Parcels Acquired by a Public Agency. A Taxable Parcel that is acquired by a public agency after the CFD is formed will remain subject to the applicable Special Tax unless the Special Tax obligation is satisfied pursuant to Section 53317.5 of the Government Code.

An exception to this may be made if a Public Parcel, such as a park site, is relocated to a Taxable Parcel, in which case the previously Tax-Exempt Parcel of comparable acreage becomes a Taxable Parcel and the Maximum Annual Maintenance Special Tax from the previously Taxable Parcel is transferred to the new Taxable Parcel. This trading of a Parcel from a Taxable Parcel to a Public Parcel will be permitted to the extent there is no net loss in Maximum Annual CFD Special Tax Revenue and the transfer is agreed to by the owners of the Parcels involved in the transfer and the Finance Director 6 . A s s i g nm e n t o f t h e M a x im um A n n u a l S p e c i a l T a x a. Classification of Parcels. For purposes of the next Fiscal Year tax levy, by June 30 of each Fiscal Year, using the Definitions in Section 2, the Parcel records of the Assessor’s secured tax roll as of January 1, and other City development approval records, the Administrator shall cause:

1. Each Parcel to be classified as a Taxable Parcel or Tax-Exempt Parcel.

2. Each Parcel to be classified as a Developed Parcel, a Small Lot Tentative Map Parcel, a Large Lot Parcel (including Remainder Parcels), or an Undeveloped Parcel. b. Identify Parcel ownership changes. The Administrator will review Assessor Parcel ownership records prior to July 1 of each year to determine if a Home Sale has occurred in prior to this date. Once a Home Sale occurs, all Taxable Parcels shall become subject to the Special Tax levy.
c. Assignment of the Maximum Annual Facilities Special Tax to Taxable Parcels. The Maximum Annual Facilities Special Tax will be assigned to each Taxable Parcel each Fiscal Year using the procedures (not all steps may be applicable for each such Parcel) in Section 4.

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit B September 26, 2022
Economic & Planning Systems, Inc. (EPS) B-15
d. Assignment of the Maximum Annual Maintenance Special Tax to Taxable Parcels. The Maximum Annual Maintenance Special Tax will be assigned to each Taxable Parcel each Fiscal Year using the procedures (not all steps may be applicable for each such Parcel) in Sections 4 and 5.
7 . C a l c u l a t i n g A n n u a l S p e c i a l T a x e s This section discusses the levy of the Facilities Special Tax and the Maintenance Special Tax.

Collectively, these Special Taxes are included in the discussion of the assignment of the Maximum Annual Special Taxes.

The Initial Special Tax levy will occur initially in the Fiscal Year following the Fiscal Year in which the First Home Sale Trigger Event occurs.

For the period following CFD formation until the Transition Event, the Maximum Annual Special Tax shall refer to the Facilities Special Tax. Beginning with the Transition Year, the Maximum Annual Special Tax shall refer to the Maintenance Special Tax.

The Administrator will compute the Annual Facilities Costs or Annual Maintenance Costs and determine the annual Special Tax levy for each Taxable Parcel based on the assignment of the Special Tax in Sections 4, 5, and 6. The Administrator then will determine the tax levy for each Taxable Parcel using the following process:

Facilities Special Tax Levy
a. Compute the Annual Facilities Costs using the definition of Annual Facilities Costs in Section 2.
b. For all Taxable Parcels, calculate the Facilities Special Tax levy for each using the following steps:

Step 7.b.1. The Facilities Special Tax shall be levied proportionately on all Developed Parcels up to the amount of Annual Facilities Cost or up to 100 percent of the Maximum Annual Facilities Special Tax Revenue for all Developed Parcels, whichever is less.

Step 7.b.2. If additional revenue is needed after Step 7.b.1., the Facilities Special Tax shall be levied proportionately on each Small Lot Tentative Map Parcel until the revenue from the Facilities Special Tax levy in this step, when added to the levy amount computed in Step 7.b.1., equals the Annual Facilities Costs, or up to 100 percent of the Maximum Annual Facilities Special Tax Revenue for all Small Lot Tentative Map Parcels. As necessary, the Facilities Special Tax shall be levied on Small Lot Tentative Map Parcels for the entire portion of Annual Facilities Costs, excluding Pay-As-You-Go Costs.

Step 7.b.3. If additional revenue is needed after Step 7.b.2., the Facilities Special Tax shall be levied proportionately on each Large Lot Parcel until the revenue from the Facilities Special Tax levy in this step, when added to the levy amount computed through Step 7.b.2., equals the Annual Facilities Costs, or up to 100 percent of the Maximum Annual Facilities Special Tax Revenue for all Large Lot Parcels. As necessary, the Facilities Special Tax shall be levied on Large Lot Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit B September 26, 2022
Economic & Planning Systems, Inc. (EPS) B-16
Parcels for the entire portion of Annual Facilities Costs, excluding Pay-As-YouGo Costs.

Step 7.b.4. If additional revenue is needed after Step 7.b.3., the Facilities Special Tax shall be levied on each Undeveloped Parcel until the revenue from the Facilities Special Tax levy in this step, when added to the levy amounts computed through Step 7.b.3., equals the Annual Facilities Costs, or up to 100 percent of the Maximum Annual Facilities Special Tax Revenue for all Undeveloped Parcels.

As necessary, the Facilities Special Tax shall be levied on Undeveloped Parcels for the entire portion of Annual Facilities Costs, excluding Pay-As-You-Go Costs.

Maintenance Special Tax Levy
c. Beginning in the Transition Year, compute the Annual Maintenance Cost using the definition of Annual Maintenance Costs in Section 2.
d. For all Taxable Parcels, calculate the Maintenance Special Tax levy for each using the following steps:

Step 7.d.1. The Maintenance Special Tax shall be levied proportionately on all Developed Parcels up to the amount of Annual Maintenance Cost or up to 100 percent of the Maximum Annual Maintenance Special Tax Revenue for all Developed Parcels, whichever is less.

Step 7.d.2. If additional revenue is needed after Step 7.d.1., the Maintenance Special Tax shall be levied proportionately on each Small Lot Tentative Map Parcel until the revenue from the Maintenance Special Tax levy in this step, when added to the levy amount computed in Step 7.d.1., equals the Annual Maintenance Costs, or up to 100 percent of the Maximum Annual Maintenance Special Tax Revenue for all Small Lot Tentative Map Parcels.

Step 7.d.3. If additional revenue is needed after Step 7.d.2., the Maintenance Special Tax shall be levied proportionately on each Large Lot Parcel until the revenue from the Maintenance Special Tax levy in this step, when added to the levy amount computed through Step 7.d.2., equals the Annual Maintenance Costs, or up to 100 percent of the Maximum Annual Maintenance Special Tax Revenue for all Large Lot Parcels
Step 7.d.4. If additional revenue is needed after Step 7.d.3., the Maintenance Special Tax shall be levied on each Undeveloped Parcel until the revenue from the Maintenance Special Tax levy in this step, when added to the levy amounts computed through Step 7.d.3., equals the Annual Maintenance Costs, or up to 100 percent of the Maximum Annual Maintenance Special Tax Revenue for all Undeveloped Parcels.
e. Levy on each Taxable Parcel the amount calculated above. f. Prepare the Tax Collection Schedule and, unless an alternative method of collection has been selected pursuant to Section 9, send it to the County Auditor requesting that it be placed on the general, secured property tax roll for the Fiscal Year. The Tax Collection Schedule will be sent no later than the date required by the County Auditor for such inclusion.

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit B September 26, 2022
Economic & Planning Systems, Inc. (EPS) B-17
The Administrator will make every effort to calculate the Special Tax correctly for each Parcel. It will be the burden of the taxpayer to identify any errors in determining which Parcels are subject to the tax and their Special Tax assignments. 8 . P r e p a ym e n t o f t h e F a c i l i t i e s S p e c i a l T a x O b l i g a t i o n
A property owner may at any time prepay 50 percent, but not more or less than 50 percent of the Maximum Annual Facilities Special Tax. For Nonresidential Use Parcels, Full Prepayment is permissible at any time. Full Prepayment is not allowable for Residential Use Parcels.

In addition to the conditions above, the City may allow a Full or Partial Prepayment if the City determines that the Prepayment will not jeopardize its ability to make timely payments of Debt Service and maintain a 110-percent annual Debt Service coverage based on Maximum Annual Special Tax Revenues in all years where there will be Outstanding Bonds. Prepayments must be made by May 1 to have the Prepayment reflected in the following Fiscal Year’s Special Tax levy.

Prepayment is permitted only under the following conditions:
• The landowner prepaying the Facilities Special Tax on a Parcel has paid any delinquent Facilities Special Tax and penalties on that Parcel before Prepayment. • Following Prepayment, amounts in the reserve fund are equal to or greater than the reserve fund requirement.
• The City determines that the Prepayment will not jeopardize its ability to make timely payments of Debt Service and maintain a 110-percent annual Debt Service coverage based on Maximum Annual Special Tax Revenues in all years in which issued Bonds will be outstanding.
• The portion of the Prepayment for the Development Impact Fee Deferral shall only be used to pay for the Development Impact Fee Deferral whether it was or is to be funded through annual special tax payments or through bonded indebtedness.

When permitted, the Administrator shall calculate Prepayments using the following steps:
a. The Full Prepayment amount shall be established by following the steps below:

Step 8.a.1: Determine the Facilities Special Tax for the Taxable Parcel for which the Facilities Special Tax is to be prepaid using the provisions of Sections 4, 5, and 6. If the Parcel is not designated as a Developed Parcel, determine the applicable Facilities Special Tax for the Parcel assuming it is a Developed Parcel.

Step 8.a.2: Increase the Facilities Special Tax by 2 percent per annum for the longer of (i) 30 years from the year in which the Parcel was first subject to the Facilities Special Tax as a Developed Parcel, or (ii) the end of the then-remaining Initial Bonding Period.

Step 8.a.3: Using a discounted rate equal to the most current yield for the 30-Year Treasury Constant Maturity, calculate the net present value of the revenue stream Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit B September 26, 2022
Economic & Planning Systems, Inc. (EPS) B-18
determined Step 8.a.2. If this yield is no longer available, the Administrator will select a yield rate from the most comparable type of security.

Step 8.a.4: Add to the amount calculated in Step 8.a.3 interest on the Bonds being redeemed to the next redemption date.

Step 8.a.5: Add to the amount calculated in Step 8.a.4 a redemption premium on the Bonds being redeemed (if any).

Step 8.a.6: Add to the amount calculated in Step 8.a.5 the Development Impact Fee Deferral amount applicable to the Parcel, as adjusted for inflation. If Bonds have been issued to finance the Development Impact Fee Deferral, follow Step 8.a.2 and 8.a.3, using for Step 8.a.2 the longer of (i) 30 years from the year in which the Parcel was first subject to the Facilities Special Tax during the Deferral Bonding Period, or (ii) the end of the then-remaining Deferral Bonding Period.

Step 8.a.7: Add the administrative cost of processing the Prepayment to the amount calculated in Step 8.a.6.

Step 8.a.8: The amount in Step 8.a.7 is the amount of the Full Prepayment of the Maximum Annual Special Tax for the Taxable Parcel.
b. Partial Prepayments will be calculated as described below:

The amount of any Partial Prepayment is limited to 50 percent of the Full Prepayment amount determined in Step 8.a.8. A Partial Prepayment may only be made in an amount equal 50 percent of the Full Prepayment desired by the party making a Partial Prepayment, except that the full amount of Administrative fees and expenses determined in Step 8.a.7 shall be included in the Partial Prepayment. The Facilities Special Tax that can be levied on a Parcel after a Partial Prepayment is made is equal to one-half of the Facilities Special Tax that could have been levied before the Partial Prepayment. 9 . I n t e r p r e t a t i o n , A p p l i c a t i o n , a n d A p p e a l o f S pe c i a l T a x F o rm u l a a n d P r o c e d u r e s Any taxpayer who feels the amount of the Special Tax assigned to a Parcel is in error may file a notice with the Finance Director appealing the levy of the Special Tax. The Finance Director then will promptly review the appeal and, if necessary, will meet with the applicant. If the Finance Director verifies that the tax should be modified or changed, the Special Tax levy will be corrected and, if applicable in any case, a credit or refund will be granted.

Interpretations may be made by the City, without Resolution or Ordinance of the Council, for purposes of clarifying any vagueness or ambiguity as it relates to the Special Tax rate, the method of apportionment, the classification of properties, or any definition applicable to the CFD.

Without Council approval, the Finance Director may make minor, non-substantive administrative and technical changes to the provisions of this RMA that do not materially affect the rate, method of apportionment, or manner of collection of the Special Tax for purposes of administrative efficiency or convenience or to comply with new applicable federal, state, or local law.

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit B September 26, 2022
Economic & Planning Systems, Inc. (EPS) B-19
The City, upon request of an owner of land in the CFD that is not a Developed Parcel, also may amend this RMA in any manner acceptable to the City, without Resolution or Ordinance of the Council, upon the affirmative vote of such owner and without the vote of owners of any other land in the CFD, provided such amendment is only applicable to such owner’s land and does not reduce the total Maximum Annual CFD Special Tax Revenue. 1 0 . M a n n e r o f C o l l e c t i o n
The Special Tax will be collected in the same manner and at the same time as ad valorem property taxes, provided, however, the Administrator or its designee may directly bill the Special Tax and may collect the Special Tax at a different time, such as on a monthly or other periodic basis, or in a different manner, if necessary, to meet the City’s financial obligations.

DRAFT
Attachment 2
Parkside at Sierra Vista CFD No. 1 (Public Facilities)
Maximum Annual Special Taxes by Tax Category
for the Base Year of FY 2023-24 [1]
Maximum Annual
Special Tax
Expected Land Uses (Tax Category) Per Unit/Taxable Acre [1]
Residential Uses per Unit
Low Density Residential (LDR) $1,987.00
Medium Density Residential (MDR) $1,767.00
High Density Residential (HDR) [2]
High Density Residential (HDR) For-Sale [2] $0.00
High Density Residential (HDR) For-Rent [2] $0.00
Affordable Medium Density Residential $883.50
Affordable High Density Residential [2] $0.00
Nonresidential Uses [2] per Taxable Acre
Mixed Use (MU) [2] $0.00
Business Professional (BP) [2] $0.00
Community Commercial (CC) [2] $0.00
Undeveloped Property $13,757.00
"att2"
[1] This amount may be increased by the Tax Escalation Factor in each Fiscal Year following the Base Year as described in this RMA.
[2] If a Low Density Residential, Medium Density Residential or Affordable Medium Density Residential Parcel with a Special Tax is rezoned to a use with an identified Special Tax of $0 in this attachment, the Special Tax would be assigned to the Parcel using the provisions of Section 4 of this RMA.

Prepared by EPS 9/26/2022
DRAFT
Attachment 3Parkside at Sierra Vista CFD No. 1 (Public Facilities)Assigned Maximum Annual Special Tax for Original Parcels (Base Year of FY 2023-24) [1] [2] Assigned Assigned
Planned Maximum Annual Maximum Annual
Original Village Tax Planned Units Special Tax Special Tax Parcel Number Category Acres Units per Acre per Unit per Village [1] [2] [1] [2]
498-180-001 FD-24 (Portion) MDR 4.63 30 6.5 $1,767.00 $53,010.00498-180-002 FD-24 (Portion) MDR 6.35 49 7.7 $1,767.00 $86,583.00498-180-003 FD-24 (Portion) MDR 6.36 56 8.8 $1,767.00 $98,952.00 CFD Totals 17.34 135 $238,545.00
"att3"
[1] This amount may be increased by the Tax Escalation Factor in each Fiscal Year following the Base Year as described in this RMA.[2] If amended to included Annexation Parcels, the Maximum Annual Special Tax for Annexation Parcels would also be subject to the Tax Escalation Factor.

Expected Land Uses
Prepared by EPS 9/26/2022
DRAFT
Attachment 4
Parkside at Sierra Vista CFD No. 1 (Public Facilities)
Maximum Annual Maintenance Special Taxes by Tax Category for the Base Year of FY 2023-24 [1]
Before After
Transition Transition
Expected Land Uses (Tax Category) Event Event
[1] [1]
Residential Uses per Unit per Unit
Low Density Residential (LDR) $0.00 $993.50
Medium Density Residential (MDR) $0.00 $883.50
High Density Residential (HDR) [2]
High Density Residential (HDR) For-Sale [2] $0.00 $0.00 High Density Residential (HDR) For-Rent [2] $0.00 $0.00 Affordable Medium Density Residential $0.00 $441.75
Affordable High Density Residential [2] $0.00 $0.00
Nonresidential Uses [2] per Taxable Acre
Mixed Use (MU) [2] $0.00 $0.00
Business Professional (BP) [2] $0.00 $0.00
Community Commercial (CC) [2] $0.00 $0.00
Undeveloped Property $0.00 $6,878.50
"att4"
[1] This amount is subject to increase by the Tax Escalation Factor in each Fiscal Year following the Base Year as described in this RMA.
[2] If a Low Density Residential, Medium Density Residential or Affordable Medium Density Residential Parcel with a Special Tax is rezoned to a use with an identified Special Tax of $0 in this attachment, the Special Tax would be assigned to the Parcel using the provisions of Section 4 of this RMA.

Maintenance Special Tax per Unit/Taxable Acre
Prepared by EPS 11/8/2022
Map 1

CITY COUNCIL OF THE CITY OF ROSEVILLE
RESOLUTION NO. 22-436

A RESOLUTION DETERMING NECESSITY TO INCUR BONDED INDEBTEDNESS

OF THE CITY COUNCIL OF THE CITY OF ROSEVILLE FOR PARKSIDE AT SIERRA VISTA COMMUNITY FACILITIES DISTRICT NO. 1 (PUBLIC FACILITIES) WHEREAS, on October 19, 2022, the City Council (the “City Council”) of the City of Roseville (the “City”) adopted a resolution entitled “A Resolution of Intention to of the City Council of the City of Roseville to Form a Community Facilities District and Levy a Special Tax in City of Roseville Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities) to Finance the Acquisition and Construction of Certain Public Facilities in and for Such Community Facilities District” (the “Resolution of Intention”), stating its intention to form "City of Roseville Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities)" (the “CFD”), pursuant to the Mello-Roos Community Facilities Act of 1982, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the “Act”);
WHEREAS, on October 19, 2022, this City Council also adopted a resolution entitled “A Resolution of the City Council of the City of Roseville of Intention to Incur Bonded Indebtedness to Finance the Acquisition and Construction of Certain Public Facilities in and for the City of Roseville Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities)" (the “Resolution of Intention to Incur Indebtedness”) stating its intention to incur bonded indebtedness within the boundaries of the CFD for the purpose of financing the costs of certain facilities specified in the Resolution of Intention;
WHEREAS, this City Council has held a noticed public hearing as required by the Act about the determination to proceed with the formation of the CFD, the provision of certain public facilities by the CFD and the rate and method of apportionment of the special tax to be levied within the CFD to pay the principal and interest on the proposed bonded indebtedness in the CFD and the administrative costs of the City relative to the CFD; WHEREAS, subsequent to the public hearing, this City Council adopted a resolution entitled “A Resolution of Formation of the City Council of the City of Roseville to Form City of Roseville Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities)” (the “Resolution of Formation”);
WHEREAS, this City Council has also held a noticed public hearing as required by the Act relative to the matters material to the questions set forth in the Resolution of Intention to Incur Indebtedness; and
WHEREAS, no written protests with respect to the matters material to the questions set forth in the Resolution of Intention to Incur Indebtedness have been filed with the City Clerk.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEVILLE RESOLVES AS FOLLOWS:

1. Recitals. The foregoing recitals are true and correct.

2. Necessity. This City Council deems it necessary to incur bonded indebtedness in the maximum aggregate principal amount of $15,000,000 within the boundaries of the CFD for the purpose of financing the costs of all or a portion of the facilities defined in the Resolution of Formation (the "Facilities"), including, but not limited to, the costs of issuing and selling bonds to finance all or a portion of the Facilities and the costs of the City in establishing and administering the CFD.

3. Entire CFD Liable. The whole of the CFD shall pay for the bonded indebtedness through the levy of the special tax. The tax is to be apportioned in accordance with the formula set forth in Exhibit B to the Resolution of Formation.

4. Bonds. Bonds in the maximum amount of $15,000,000 are hereby authorized subject to voter approval. The bonds may be issued in one or more series and mature and bear interest at such rate or rates, payable semiannually or in such other manner, all as this City Council or its designee shall determine, at the time or times of sale of such bonds; provided, however, that the interest rate or rates shall not to exceed the maximum interest rate permitted by applicable law at the time of sale of the bonds and any series thereof shall have a maximum term of not to exceed 40 years.

5. Election. The proposition of incurring the bonded indebtedness herein authorized shall be submitted to the qualified electors of the CFD and shall be consolidated with elections on the proposition of levying special taxes within the CFD and the establishment of an appropriations limit for the CFD pursuant to Section 53353.5 of the Act. The time, place and further particulars and conditions of such election shall be as specified by separate resolution of this City Council.

6. Effective Date. This Resolution shall take effect upon its adoption. * * * * * *
The foregoing Resolution was adopted by the City Council of the City of Roseville on the day of , 2022, on the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Mayor
ATTEST:

City Clerk
2 ORDINANCE NO. 6573

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEVILLE LEVYING

SPECIAL TAXES WITHIN CITY OF ROSEVILLE PARKSIDE AT SIERRA VISTA COMMUNITY FACILITIES DISTRICT NO. 1 (PUBLIC FACILITIES) WHEREAS, on October 19 2022, this City Council (the “City Council”) of the City of Roseville (the “City”), adopted a resolution stating its intention to establish “City of Roseville Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities)” (the “CFD”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, sections 53311, et. seq., of the California Government Code (the “Act”), to finance the acquisition and construction of certain facilities;
WHEREAS, notice was published as required by the Act relative to the intention of this City Council to form the CFD, to provide for certain facilities and to incur bonded indebtedness for the CFD in an amount not to exceed $15,000,000;
WHEREAS, this City Council has held noticed public hearings as required by the Act relative to (i) the determination to proceed with the formation of the CFD, and the rate and method of apportionment of the special tax to be levied within the CFD to finance a portion of the costs of the facilities and (ii) the issuance of not to exceed $15,000,000 of bonded indebtedness for the CFD;
WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of the CFD, and the levy of said special taxes within the CFD were heard, substantial evidence was presented and considered by this City Council and a full and fair hearing was held; WHEREAS, subsequent to the hearing, this City Council adopted resolutions entitled “A Resolution of the City Council of the City of Roseville to Form City of Roseville Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities)” (the “Resolution of Formation”), “A Resolution Determining Necessity to Incur Bonded Indebtedness of the City Council of the City of Roseville for Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities)” (the “Resolution of Necessity”) and “Resolution Calling Special Election of the City Council of the City of Roseville Regarding City of Roseville Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities),” which resolutions defined the public facilities to be financed by the CFD (the "Facilities"), established the CFD, authorized the levy of a special tax with the CFD, determined the necessity to incur bonded indebtedness in the CFD and called an election within the CFD on the propositions of incurring indebtedness, levying a special tax, and establishing an appropriations limit within the CFD, respectively; and
WHEREAS, on December 7, 2022 a special election was held within the CFD at which the eligible landowner-electors approved such propositions by the two-thirds vote required by the Act.

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROSEVILLE, as follows:
2 Section 1. By the passage of this Ordinance, the City Council hereby authorizes and levies special taxes within the CFD pursuant to the Act, at the rate and in accordance with the formula (the "Rate and Method") set forth in the Resolution of Formation, which Resolution of Formation is by this reference incorporated herein, or the applicable Unanimous Approval which rate and method is by this reference incorporated herein. The special taxes are hereby levied commencing in fiscal year 2023-24 and in each fiscal year thereafter until payment in full of any bonds issued by the City for the CFD (the “Bonds”) or such longer period provided in the Rate and Method, as contemplated by the Resolution of Formation and the Resolution of Necessity, and all costs of administering the CFD.

Section 2. The Finance Director of the City is hereby authorized and directed each fiscal year to determine the specific special tax rate and amount to be levied for the next ensuing fiscal year for each parcel of real property within the CFD, in the manner and as provided in the Resolution of Formation.

Section 3. Except as set forth in the Rate and Method, properties or entities of the State, federal or local governments shall be exempt from any levy of the special taxes. In no event shall the special taxes be levied on any parcel within the CFD in excess of the maximum tax specified in the Resolution of Formation.

Section 4. All of the collections of the special tax shall be used as provided for in the Act, the Rate and Method and in the Resolution of Formation including, but not limited to, the payment of principal and interest on the Bonds, the replenishment of the reserve fund for the Bonds, the payment of the costs of the Facilities, the payment of the costs of the City in administering the CFD, and the costs of collecting and administering the special tax.

Section 5. The special taxes shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that this City Council may provide for other appropriate methods of collection by resolutions of this City Council. In addition, the provisions of Section 53356.1 of the Act shall apply to delinquent special tax payments. The Finance Director of the City is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of Placer in order to effect proper billing and collection of the special tax, so that the special tax shall be included on the secured property tax roll of the County of Placer for fiscal year 2023- 24 and for each fiscal year thereafter until the Bonds are paid in full or such longer period of time provided in the Rate and Method.

Section 6. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the CFD by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within the CFD shall not be affected.

Section 7. The Mayor shall sign this Ordinance and the City Clerk shall cause the same to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated in the City.

Section 8. This Ordinance shall take effect 30 days from the date of final passage. 3 * * * * * * * * * * *
The foregoing Ordinance was adopted by the City Council of the City of Roseville on the day of , 2022, on the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Mayor
ATTEST:

City Clerk
Hearing Report
Parkside at Sierra Vista
Community Facilities District
No. 1 (Public Facilities)
Prepared for:

City of Roseville
Prepared by:

Economic & Planning Systems, Inc. (EPS)
November 2022
EPS #222084
Table of Contents
Introduction ................................................................................. 1 Background ....................................................................................... 1 Purpose of the CFD ............................................................................. 1 Organization of the Report ................................................................... 2 Land Uses .................................................................................... 4 Authorized Facilities and Estimated Facility Costs .............................. 6 Authorized Facilities of the CFD ............................................................. 6 Authorized Services ........................................................................... 10 Authorized Facilities Estimated Costs ................................................... 10 CFD Bond Authorization and Maximum Annual Special Tax ................. 12 CFD Bond Authorization and Funding Strategy ...................................... 12 Maximum Annual Special Tax ............................................................. 13 Overall Tax Burden for Single-Family Residential ................................... 14 Structure of the CFD .................................................................... 19 Description of the CFD ....................................................................... 19 The CFD Funding Program .................................................................. 19 Transition Event for Special Taxes ....................................................... 19 Determining the Maximum Annual Special Tax ...................................... 20 Base Year ........................................................................................ 20 Annual Tax Escalation Factor .............................................................. 20 Duration of the Special Tax ................................................................ 20 Definition of Initial Bonding Period ....................................................... 21 Definition of Annual Facilities Costs ..................................................... 21 Transition Event and Maintenance Special Taxes ................................... 24 Definition of Annual Maintenance Costs ................................................ 24 Assignment of Maximum Annual Special Tax ......................................... 25 Affordable Units ................................................................................ 26 Conversion of a Tax-Exempt Parcel to a Taxable Parcel .......................... 26 Taxable Parcels Acquired by a Public Agency ......................................... 26 Determination of Parcels Subject to Special Tax .................................... 27 Setting the Facilities Special Tax Levy for Taxable Parcels ....................... 27 Setting the Maintenance Special Tax Levy for Taxable Parcels ................. 28 Prepayment of the Special Tax Obligation ............................................. 29 Interpretation, Application, and Appeal of Special Tax
Formula and Procedures .................................................................... 29 Manner of Collection .......................................................................... 30 Exhibits:

Exhibit A: Facilities Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit B: List of Authorized Facilities and Services
List of Map and Tables
Map 1 Parkside at Sierra Vista CFD No. 1 ................................................. 3 Table 1 CFD Land Uses ........................................................................... 5 Table 2 Authorized Facilities Costs .......................................................... 11 Table 3 Maximum Annual Facilities Special Taxes by
Tax Category for the Base Year of FY 2023–24 .............................................. 15 Table 4 Assigned Maximum Annual Facilities Special
Tax for Original Parcels .............................................................................. 16 Table 5 Maximum Annual Maintenance Special Taxes by
Tax Category for the Base Year of FY 2023-24 .............................................. 17 Table 6 Estimated Total Effective Tax Burden ........................................... 18 Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities) November 2022
Economic & Planning Systems, Inc. (EPS) 1
Introduction
Background
The City of Roseville (City) retained Economic & Planning Systems, Inc. (EPS) to support its efforts to create a Mello-Roos Community Facilities District (CFD) for the Parkside at Sierra Vista (Parkside) development, located in the Sierra Vista Specific Plan (SVSP) area, north of Vista Grande Boulevard and west of Market Street. The objective of establishing a CFD is to create a land-secured funding mechanism to help fund construction of authorized facilities of the CFD that then would transition, after a specified period, to help fund authorized services.

Overall, the Parkside area includes more than 17 acres of developable property approved for 135 dwelling units (currently planned as 135 medium-density residential [MDR] units. Parkside will be initially developed by JMC Homes (Developer) as a “for-rent” residential development. As for-rent product, the Developer intends to not impose an annual special tax levy by asking the City to either issue CFD bonds or to request pay-as-you-go (PAYGO) funding to acquire authorized facilities of the CFD. At some future date, the Developer may sell the for-rent product to individual owners. The CFD will be “activated” at that point, and the CFD will incur authorized costs that will trigger the initial special tax levy and collection.

Purpose of the CFD
The CFD is being formed primarily to allow the Developer to use CFD special tax funding to pay deferred development impact fee obligations of Parkside. The CFD will also be authorized to fund (if desired by the Developer) major road improvements, potable and non-potable water system improvements, drainage system improvements, wastewater system improvements, solid waste improvements, park and paseo improvements, open space improvements, utilities, and other authorized facilities under the Mello-Roos Act, serving Parkside as a condition of the City’s approval of the development.

Through the transition of the facilities special tax to the maintenance special tax, the CFD may also fund long-term repair and replacement of authorized facilities once CFD bonds have been defeased and other obligations of the CFD for authorized facilities have been fulfilled. Once these facilities special tax obligations have been fulfilled, the City has the discretion to levy the maintenance special tax to help fund long-term repair and replacement of such facilities.

Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities) November 2022
Economic & Planning Systems, Inc. (EPS) 2
The Resolution of Intention to form the CFD was approved at the regular City Council meeting October 19, 2022. The public hearing and Resolution of Formation are scheduled for the regular City Council meeting December 7, 2022.

Authorized to issue up to $15 million in bonds, the first series of bonds are intended to be issued in the fiscal year following the initial sale of for-rent product to individual owners. Map 1 shows the proposed boundaries of the CFD.

Organization of the Report
This report consists of these 5 chapters and 2 exhibits:
 Chapter 1 includes this introduction.
 Chapter 2 describes the proposed land uses in the CFD.  Chapter 3 describes authorized facilities to be funded in the CFD, the costs, and the cost allocations.
 Chapter 4 describes the maximum CFD bond authorization and the maximum annual special tax.
 Chapter 5 describes the structure of the CFD.
 Exhibit A provides the Facilities Rate, Method of Apportionment, and Manner of Collection of Special Tax (RMA).
 Exhibit B provides the List of Authorized Facilities and Services.

Map 1
Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities) November 2022
Economic & Planning Systems, Inc. (EPS) 4
Land Uses
The City intends to form the Parkside CFD No. 1 over a portion the SVSP area, located north of Vista Grande Boulevard and west of Market Street. The Parkside area includes more than 17 acres of property approved for approximately 135 MDR dwelling units. The Parkside property is anticipated to begin development in fall of 2023. Table 1 shows proposed land uses.

The 135 residential units will initially be offered as for-rent product by the Developer. The Developer may sell the for-rent units to individual owners in the future, at which time, the single-family home will become subject to the levy and collection of the special tax.

The objective of establishing a CFD is to create a land-secured funding mechanism to be used to fund construction of authorized facilities of the CFD.

Table 1
Parkside at Sierra Vista CFD No. 1 (Public Facilities)
Infrastructure CFD Parcels
Assessor's
Parcel Village Planned
Number Number Land Use Acres Units
498-180-001 FD-24 (Portion) MDR 4.63 30
498-180-002 FD-24 (Portion) MDR 6.35 49
498-180-003 FD-24 (Portion) MDR 6.36 56
Totals 17.34 135
"land_use"
Source: EPS
Prepared by EPS 11/8/2022 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Models\222084 RMA Attachments 5 Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities) November 2022
Economic & Planning Systems, Inc. (EPS) 6
Authorized Facilities and Estimated
Facility Costs
This chapter describes the authorized facilities eligible to be financed or otherwise funded through the CFD with the proceeds of CFD bonds on a PAYGO basis from special taxes levied under the CFD.

Authorized Facilities of the CFD
The CFD is authorized to fund certain facilities required to serve the Parkside.

Authorized facilities are identified in the List of Authorized Facilities (Exhibit B of this report). Authorized facilities are briefly discussed below.

Transportation Improvements
Public roadway improvements designed to meet the needs of the project, including those improvements identified in the project Development Agreement (DA) Sections 3.5.17 and 3.5.18, include:
 Federico Drive.
 Fiddyment Road.
 Market Street.
 Santucci Boulevard.
 Summerfaire Drive.
 Silver Spruce Drive.
 Sierra Glen Drive.
 Vista Park Drive.
 Vista Grande Boulevard.
 Westbrook Boulevard.

Eligible roadway improvements include the following items: acquisition of land and easements; roadway design; project management; geotechnical engineering, testing, and observations; bridge crossings and culverts; clearing, grubbing, and demolition; grading, soil import/export, paving (including slurry seal), and decorative/enhanced pavement concrete or pavers; power pole relocations; joint trenches, underground utilities, and undergrounding of existing utilities; dry utilities and appurtenances; curbs, gutters, sidewalks, bike trails (including onand off-site), park-and-ride facilities, bus rapid transit improvements, including transfer stations and regional public transit improvements; retaining walls, sound walls, enhanced fencing, and access ramps; street lights, signalization, and traffic signal control systems; bus turnouts; signs and striping; erosion control; median and parkway landscaping and irrigation; entry monumentation; bus shelters; Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities) November 2022
Economic & Planning Systems, Inc. (EPS) 7
masonry walls; traffic control and agency fees; and other improvements related thereto. Eligible improvements for the roads listed above also include any and all necessary underground potable and non-potable water, sanitary sewer, and storm drainage system improvements.

Potable and Non-Potable Water System Improvements
Authorized facilities include any and all on- and off-site backbone water facilities designed to meet the needs of development of the project. These facilities include potable and non-potable mains, valves, services, and appurtenances; wells; and water treatment and storage facilities, and related improvements, including but not limited to site clearing, grading, and paving; curbs and gutters; recycled water storage tanks, booster pump stations, and all appurtenances thereto; wells; water treatment; stand-by generator; site lighting, drainage, sanitary sewer, and water service; landscaping and irrigation; access gates and fencing; striping and signage; and the following:
 Water lines in/associated with authorized facility roads.  Recycled water lines in/associated with authorized facility roads.  Well construction or financial contributions thereto on, but not limited to JM-60.
 Water Tank Site Improvements (DA Section 3.8.2).
 Recycled Water Storage Tank Facility.
 Reimbursement obligation for the Baseline Road 24” water line (DA Section 3.8.3).
 CFD obligations for RW tank(s) required by DA Section 3.9.

Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities) November 2022
Economic & Planning Systems, Inc. (EPS) 8
Wastewater System Improvements
Authorized facilities include any and all on- and off-site backbone wastewater facilities designed to meet the needs of development of the project. These facilities include pipelines and all appurtenances thereto; manholes; tie-in to existing main line; force mains; lift stations; odor-control facilities; sewer treatment plant improvements and permitting related thereto; and related sewer system improvements, including but not limited to all wastewater facilities in/associated with authorized facility roadways.

Solid Waste Improvements
Authorized facilities include any and all backbone solid waste improvements designed to meet the needs of development of the project. Eligible improvements also include the project’s pro-rata contribution, as described in the project DA, to the SVSP Solid Waste Recycling Center (DA Section 3.26(iii)).

Park, Landscape Corridor, and Paseo Improvements
Authorized facilities include any and all improvements to parks, landscape corridors, and paseos located in the project, including but not limited to:
 Construction of Park Sites as identified by the Specific Plan.  Construction of Paseos as identified by the Specific Plan.

Open Space Improvements
Authorized facilities include any and all open space improvements designed to meet the needs of development of the project, including bike trails, bike/pedestrian bridges, storm drain crossings, storm drain detention/retention, wetland mitigation, tree mitigation, on- and off-site hawk/raptor mitigation, agricultural mitigation or wetland mitigation, property acquisition, endowment payments for open space management, landscaping and irrigation, access gates and fencing, and related open space improvements, including but not limited to:
 Improvements as identified by the Specific Plan.
 Wetland creation, mitigation, fencing, etc.

Authorized facilities also shall include costs related to the acquisition of the offsite electric substation site; site clearing; grading; street frontage improvements, including curbs, gutters, and paving; and construction of an all-weather access Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities) November 2022
Economic & Planning Systems, Inc. (EPS) 9
road to the site from the nearest public street or extension of temporary 12kV overhead lines as described in the project DA, including but not limited to:
 SVSP Electric Substation site acquisition, and improvements required by DA Section 3.11.3.
 Temporary overhead 12kV lines to loop SVSP substation to line in West Roseville Specific Plan (WRSP) Phases 3 and 4.

Other Public Facilities
Authorized facilities include any and all public facilities or infrastructure, including the project’s pro-rata contribution to the land acquisition of the off-site fire station site, site clearing, grading, and street frontage improvements including curbs, gutters, and paving, including but not limited to fire station site reimbursement obligations in DA Section 3.23.

Development Impact Fees
Authorized facilities include development impact fees paid and not otherwise reimbursed, whether standard City or Placer County fees levied at the time of the issuance of a building permit or required as part of the DA for the property. Fees include, but are not limited to, the South Placer Regional Transportation Authority Tier II Traffic Fee, the Citywide Park Fee, the City Public Facilities Fee, and the Public Benefit Fee (as defined in Section 3.14.3 of the DA for the property).

Formation, Administrative, and Incidental Expenses
In addition to the above facilities, other expenses incidental to the above and authorized by the Mello-Roos Community Facilities Act of 1982, including but not limited to the cost of planning, permitting, and designing the facilities (including the cost of environmental evaluation, orthophotography, environmental remediation/mitigation, and preparation of an overarching Operation and Maintenance Plan for the City Open Space Preserves); land acquisition and easement payments for the facilities; project management; construction staking; engineering studies and reports; utility relocation and demolition costs incidental to construction of the facilities, wetland/species mitigation purchase; reimbursements to other areas for infrastructure facilities or planning serving development in the CFD; SVSP planning, legal, engineering, and technical studies costs related to the facilities; and any other expenses incidental to the construction, completion, and inspection of the facilities.

Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities) November 2022
Economic & Planning Systems, Inc. (EPS) 10
In addition, costs eligible to be financed by the CFD shall include all costs associated with the formation and ongoing administration of the CFD and issuance of bonds; determination of the amount of taxes and collection of taxes; inspection, plan check, and other costs related to acceptance of the facilities by the City; payment of taxes; and any other costs incurred to carry out the authorized purposes of the CFD.

Authorized Services
The authorized services to be funded from the levy and collection of annual maintenance special taxes are the provision of public services, maintenance, and operation related to any facilities authorized to be funded by the CFD with a useful life of 5 or more years, including but not limited to performance by employees of functions and repair activities. Maintenance as used herein includes replacement and the creation and funding of a reserve fund to pay for a replacement of such facilities. The maintenance special taxes shall only fund authorized services to the extent they are in addition to those provided to land in the CFD before the creation of the CFD.

Authorized Facilities Estimated Costs
The City is administering the SVSP Fee Program that includes approximately $150 million in backbone infrastructure and other public improvements. With Parkside CFD No. 1, the Developer intends to fund as much of the project’s proportional obligation to the SVSP Fee Program infrastructure as possible.

Table 2 shows total estimated fees of $1.5 million, shown in 2022 dollars.

Development Impact Fee Deferrals
In addition to backbone infrastructure, the CFD is authorized to fund deferred impact fees. Through the DA, the Developer is entitled to defer certain impact fees identified in the DA. These are the fees eligible for deferral:
 South Placer Regional Transportation Authority (SPRTA) Tier II Traffic Fees.  Citywide Park Fee.
 City Public Facilities Fee.
 City Public Benefit Fee.

As described in more detail later in this report, repayment of impact fee deferrals will follow reimbursement for eligible backbone infrastructure.

Table 2
Parkside at Sierra Vista CFD No. 1 (Public Facilities)
Authorized Facilities Costs
Estimated
Total
Item Cost
Deferred Tier II Traffic Fees (50%) $1,131,570
Deferred Park Fees (100%) $325,890
Total $1,457,460
ph1cost
Source: JMC Homes
Prepared by EPS. 222084 RMA Attachments 11/8/2022
11 Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities) November 2022
Economic & Planning Systems, Inc. (EPS) 12
CFD Bond Authorization and Maximum
Annual Special Tax
This chapter will discuss the maximum CFD bond authorization and maximum annual special taxes as proposed by the Developer for each taxable land use type.

The CFD will have special taxes for the funding of authorized facilities. This annual facilities special tax will be transitioned to an annual maintenance special tax to fund authorized services of the CFD when authorized facilities obligations of the CFD have been fulfilled. These special tax programs will be discussed further in Chapter 5 of this report.

CFD Bond Authorizat ion and Funding
Strategy
The DA authorized the use of the CFD to fund authorized facilities of the CFD and outlined a basic structure for the CFD.

The DA identified the following sources of potential funding for authorized facilities of the CFD:
 CFD Bonds.
 CFD PAYGO.
 Owner Equity/Private Financing.

Each funding source is discussed below.

Maximum CFD Bond Authorization and Series A Bond Sale
The CFD is authorized to issue up to $15 million in bonds. The property owner is anticipated to ask the City to sell the bonds in the fiscal year following the sale of a for-rent home to an individual homebuyer. It is anticipated there will be one bond sale under the CFD.

CFD PAYGO
Special taxes levied and not needed to fund CFD bond debt service or City administration of the CFD may be used for PAYGO expenditures for authorized CFD facilities not reimbursed with CFD bond proceeds. As memorialized in the DA, the City has agreed to provide PAYGO funding to the Developer for the first 30 years of the CFD.

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Following Developer use of CFD PAYGO revenues, the City reserves the right to continue the special tax levy to pay the development impact fee deferral on a PAYGO basis. The City also has discretion to reimburse itself for deferred fees through a CFD bond sale in addition to PAYGO revenues.

Owner Equity/Private Financing
To the extent there are any shortfalls in the funding sources for authorized facilities, owner equity or private financing will be used to fund construction of such facilities.

Maximum Annual Special Tax
A facilities special tax will be assigned to taxable parcels at formation of the CFD.

This facilities special tax will initially be used to fund the costs of authorized facilities (as defined in the previous chapter). Once all facilities special tax obligations to fund facilities have been completed, the maintenance special tax will be assigned to taxable parcels for the City’s use for long-term repair and replacement of authorized facilities. The Parkside CFD No. 1 RMA includes the following two special taxes:
 Facilities Special Tax.
 Maintenance Special Tax.

The facilities special tax will be assigned and collected before the “transition event” for the special tax programs. Following the transition event, the facilities special tax will no longer be assigned to taxable parcels and will be replaced by the maintenance special tax. The transition event is discussed in detail in the next chapter.

Each special tax program is discussed below.

Facilities Special Tax
The developer provided the City with recommended maximum annual special taxes for various land use categories, based on market conditions and the range of maximum annual special tax rates in neighboring City areas. Table 3, which is Attachment 2 from the RMA, shows the maximum annual special tax rates for the following tax categories:
 Low-density residential (LDR).
 MDR.
 Medium-density affordable—middle.
 High-density affordable—low.
 High-density affordable—very low.
 Nonresidential.

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Table 3 shows the maximum annual special tax per tax category in the base year of Fiscal Year (FY) 2023-24. The maximum annual special tax for LDR is $1,987.

The maximum annual special tax for MDR units is $1,767. The maximum annual special tax for affordable units is $0.

Nonresidential uses (including community commercial [CC]) are assigned a maximum annual special tax of $0 per acre. The maximum annual special tax for high-density residential (HDR) uses, whether for sale or for rent, has been established at $0 at CFD formation. Finally, Table 4, which is Attachment 3 from the RMA, shows the maximum annual special tax for each original CFD parcel in the base year.

Maintenance Special Tax
The maximum maintenance special tax is shown in Table 5 for all tax categories.

The maintenance special tax is set at 50 percent of the maximum facilities special tax in the base year. The maintenance special tax will not be levied at the same time as the facilities special tax and would be assigned only to taxable parcels following the transition event.

Overall Tax Burden for Single-Family
Residential
The DA and City policies stipulate that the overall tax burden after formation of a CFD not exceed 2 percent of the estimated sales price of a single-family residential home. Estimated sales prices of residential homes were provided by the Developer. Table 6 shows the estimated total effective tax rate for prototypical uses in the CFD. The test includes all current ad valorem property taxes, the CFD special tax, an estimated services CFD special tax, and the City CFD No. 3. One residential product (MDR) is proposed for this CFD and is shown in Table 5.

Ad valorem property tax rates were derived from copies of the FY 2022-23 property tax bills. The overall tax burden for single-family residential homes proposed for the CFD is 1.70 percent. The special tax is expected to first be collected after the earliest of the following two events:

1. Ten years from the issuance of the first building permit for residential construction.

2. The initial sale of a home to an individual buyer.

Table 3
Parkside at Sierra Vista CFD No. 1 (Public Facilities)
Assigned Maximum Annual Special Tax for Original Parcels (Base Year of FY 2023-24) [1] [2] Assigned Assigned
Planned Maximum Annual Maximum Annual
Original Village Tax Planned Units Special Tax Special Tax Parcel Number Category Acres Units per Acre per Unit per Village [1] [2] [1] [2]
498-180-001 FD-24 (Portion) MDR 4.63 30 6.5 $1,767.00 $53,010.00 498-180-002 FD-24 (Portion) MDR 6.35 49 7.7 $1,767.00 $86,583.00 498-180-003 FD-24 (Portion) MDR 6.36 56 8.8 $1,767.00 $98,952.00 CFD Totals 17.34 135 $238,545.00
"att3"
[1] This amount may be increased by the Tax Escalation Factor in each Fiscal Year following the Base Year as described in this RMA. [2] If amended to included Annexation Parcels, the Maximum Annual Special Tax for Annexation Parcels would also be subject to the Tax Escalation Factor.

Expected Land Uses
Prepared by EPS 11/8/2022
15 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Models\222084 RMA Attachments Table 4
Parkside at Sierra Vista CFD No. 1 (Public Facilities)
Maximum Annual Special Taxes by Tax Category
for the Base Year of FY 2023-24 [1]
Maximum Annual
Special Tax
Expected Land Uses (Tax Category) Per Unit/Taxable Acre [1]
Residential Uses per Unit
Low Density Residential (LDR) $1,987.00
Medium Density Residential (MDR) $1,767.00
High Density Residential (HDR) [2]
High Density Residential (HDR) For-Sale [2] $0.00
High Density Residential (HDR) For-Rent [2] $0.00
Affordable Medium Density Residential $883.50
Affordable High Density Residential [2] $0.00
Nonresidential Uses [2] per Taxable Acre
Mixed Use (MU) [2] $0.00
Business Professional (BP) [2] $0.00
Community Commercial (CC) [2] $0.00
Undeveloped Property $13,757.00
"att2"
[1] This amount may be increased by the Tax Escalation Factor in each Fiscal Year following the Base Year as described in this RMA.
[2] If a Low Density Residential, Medium Density Residential or Affordable Medium Density Residential Parcel with a Special Tax is rezoned to a use with an identified Special Tax of $0 in this attachment, the Special Tax would be assigned to the Parcel using the provisions of Section 4 of this RMA.

Prepared by EPS 11/8/2022
16 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Models\222084 RMA Attachments Table 5
Parkside at Sierra Vista CFD No. 1 (Public Facilities)
Maximum Annual Maintenance Special Taxes by Tax Category for the Base Year of FY 2023-24 [1]
Before After
Transition Transition
Expected Land Uses (Tax Category) Event Event
[1] [1]
Residential Uses per Unit per Unit
Low Density Residential (LDR) $0.00 $993.50
Medium Density Residential (MDR) $0.00 $883.50
High Density Residential (HDR) [2]
High Density Residential (HDR) For-Sale [2] $0.00 $0.00 High Density Residential (HDR) For-Rent [2] $0.00 $0.00 Affordable Medium Density Residential $0.00 $441.75
Affordable High Density Residential [2] $0.00 $0.00
Nonresidential Uses [2] per Taxable Acre
Mixed Use (MU) [2] $0.00 $0.00
Business Professional (BP) [2] $0.00 $0.00
Community Commercial (CC) [2] $0.00 $0.00
Undeveloped Property $0.00 $6,878.50
"att4"
[1] This amount is subject to increase by the Tax Escalation Factor in each Fiscal Year following the Base Year as described in this RMA.
[2] If a Low Density Residential, Medium Density Residential or Affordable Medium Density Residential Parcel with a Special Tax is rezoned to a use with an identified Special Tax of $0 in this attachment, the Special Tax would be assigned to the Parcel using the provisions of Section 4 of this RMA.

Maintenance Special Tax per Unit/Taxable Acre
Prepared by EPS 11/8/2022
17 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Models\222084 RMA Attachments Table 6
Parkside at Sierra Vista CFD No. 1 (Public Facilities)
Base Year FY 2023-24 Estimated Annual Taxes and Assessments Item Assumption MDR
Estimated Home Price [1] $509,990
Homeowner's Exemption ($7,000)
Estimated Assessed Value $502,990
Ad Valorem Property Taxes (TRA 005-070) [2] FY 2022/23
General Ad Valorem 1.00000% $5,030
Sierra College SFID #4 GO Bond 2018 Series A 0.00241% $12 Sierra College SFID #4 GO Bond 2018 Series B 0.01619% $81 Center Joint Unif B&I 0.10410% $524
Center Joint Unif B&I 2008 Series 2020A 0.00700% $35
Center Joint Unif B&I 2008 Series 2020A Refunding 0.03070% $154 Center Joint Unif B&I 2008 Series 2020B Refunding 0.00220% $11 Center Joint Unif B&I 2008 Series 2021B Refunding 0.01000% $50 Subtotal Ad Valorem Property Taxes 1.17260% $5,898
Direct Charges and Assessments
City of Roseville CFD No. 1 (Public Facilities) [3] $1,767 City of Roseville CFD No. 2 (Public Services) [4] $471
City of Roseville CFD No. 3 (Municipal Services) [5] $508 Placer Mosquito & Vector Control $6
Subtotal Direct Charges and Assessments $2,752
Total Ad Valorem Property Taxes and Direct Charges $8,650 Overall Tax Burden 1.70%
2 percent
Source: County of Placer; City of Roseville; EPS.
[1] Provided by JMC Homes
[2] Ad Valorem tax rates based on FY 2022-2023.
[3] CFD No. 1 Special Tax will be collected after the initial sale of an existing home to individual owners, or after 10 years from the issuance of the building permit for construction of a home.
[4] Tax Zone D of Sierra Vista Specific Plan CFD No. 2 (Public Services). [5] Based on CFD No. 3 as identified in the project Development Agreement escalated to 2022-23.

Prepared by EPS 11/8/2022
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Structure of the CFD
Description of the CFD
The CFD is being formed to fund deferred development impact fees for infrastructure and facilities that will serve Parkside. The attached exhibits are documents contained in the Resolution of Formation (ROF). Exhibit A is the CFD RMA, and Exhibit B is the List of Authorized Facilities and Services. Through the transition of the facilities special tax to the maintenance special tax, the CFD may also fund long-term repair and replacement of authorized facilities once CFD bonds have been defeased and other obligations of the CFD for authorized facilities have been fulfilled. Once these facilities special tax obligations have been fulfilled, the City has the discretion to levy the maintenance special tax to help fund long-term repair and replacement of such facilities.

The CFD Fu nding Program
The CFD will be authorized to levy and collect the special tax to pay all annual costs of the CFD, including funding for authorized facilities not funded through CFD bond proceeds, which may be paid on a PAYGO basis, during the first 30 years of the special tax levy.

The facilities special tax will not be collected until the earlier of the following two events:

1. Ten years from the issuance of the first building permit for residential construction.

2. The initial sale of a home to an individual buyer.

The CFD will be authorized to levy and collect the special tax to pay all annual maintenance costs of the CFD following the transition event.

Transition Event for Special Taxes
The special taxes for the CFD are intended to first fund authorized facilities of the CFD and then to fund authorized services of the CFD. As described below, the facilities special tax shall be effective during an initial bonding period and thereafter during a deferral bonding period. The idea is that the facilities special tax may be levied to fund authorized facilities and to repay the City for deferred impact fees. The full estimated term of the deferred bonding period may not be required if deferred development impact fees are funded through special tax revenues on a PAYGO basis.

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Once all obligations to fund authorized facilities have been satisfied, the facilities special tax will “transition” to a maintenance special tax to fund long-term repair and replacement costs for authorized facilities. This Transition Event from the levy of the annual facilities special tax to the maintenance special tax is discussed in further detail below.

Determining the Maximum Annual
Special Tax
As stated in the previous chapter, the maximum annual special tax rates for the various tax categories were provided by the Developer and based, in part, on maximum annual special tax rates for other neighboring City areas. The maximum annual special tax rates are designed to be competitive with other residential development projects in south Placer County. Table 3 shows the maximum annual special tax rates by tax category for the facilities special tax.

Table 5 shows the maximum annual special tax rates by tax category for the maintenance special tax.

Base Year
The base year is FY 2023-24. A base year is defined in the RMA as a means of defining the special tax base in a given fiscal year that is allowed to increase by a given factor over a period of time.

Annual Tax Escalation Factor
The administrator shall increase the maximum annual facilities special tax, the maximum annual maintenance special tax, and the related maximum annual special tax rates by the tax escalation factor in all fiscal years following the base year, up to the Transition Event. After the Transition Event, the maximum annual maintenance special tax may be increased up to 2 percent annually at the City’s discretion.

Duration of the Special Tax
The facilities special tax will be levied and collected until the earlier of (1) the transition year or (2) FY 2087-88. The maintenance special tax may be levied and collected in perpetuity beginning with the transition year and in each year thereafter at the discretion of the City. The maintenance special tax will be levied and collected beginning in the transition year.

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Definition of Init ial Bonding Period
Because the CFD includes payment of deferred development impact fees, the CFD RMA distinguishes between the initial bonding period, during which authorized facilities may be financed, and the subsequent period, where development impact fees may be reimbursed. As defined in the RMA, Initial Bond Period means “30 years from the issuance of the first Building Permit or First Home Sale Trigger Event, whichever is earlier”. The “First Home Sales Trigger Event” is defined as “a change in ownership of any Parcel with a Building Permit for Residential Uses from the Master Developer to a third party”. The Developer intends to rent 135 homes for a period of approximately 10 years. After this time, the homes are to be sold to individual homeowners.

Definition of Annual Facilities Costs
The maximum annual facilities special tax established under the RMA is the maximum exposure to an annual facilities special tax levy for a given parcel of land. The actual amount of the levy is derived through determining the “annual facilities costs” of the CFD. The RMA identifies the annual facilities costs components as:
a. Debt service to be paid from facilities special taxes. b. The amount needed to replenish the reserve fund for the bonds to the level required under the bond indenture, to the extent not included in a computation of annual facilities costs in a previous fiscal year. c. Administrative expenses for such fiscal year.
d. The amount needed (1) to cure any delinquencies in the payment of principal or interest on bonds, which have occurred in the prior fiscal year and (2) to fund any foreseeable deficiency of the amount to be available for the payment of principal or interest on bonds, which are expected to occur in such fiscal year to the extent not included in a previous computation of annual costs in the current or any previous fiscal years.
e. The amount needed (1) to cure any delinquencies in the payment of the facilities special tax in the prior fiscal year, to the extent not otherwise included in a computation of annual facilities costs in the current or any previous fiscal year and (2) to fund any foreseeable deficiency in the payment of the facilities special tax for that fiscal year, which is expected to occur in such fiscal year, to the extent not included in a computation of annual facilities costs in the current or any previous fiscal year.

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f. Authorized facilities funded on a PAYGO basis.
g. During the deferral bonding period, the amount needed to pay development impact fee deferrals not financed by bonds.
h. Less any available earnings on the reserve fund, the special tax funds, or any other available revenues of the CFD or the City that may be used to fund annual facilities costs.

Debt Service
Debt service would be that portion of the maximum annual special tax required to pay a parcel’s share of the debt service. The proposed financing structure of the CFD anticipates that one or more series of CFD bonds may be issued.

Amount Needed to Replenish Reserve Fund
In the event the reserve fund is drawn on to pay debt service or expenses of the CFD, a facilities special tax may be levied to replenish the bond reserve fund to required funding levels. A facilities special tax should be levied once for each draw on the bond reserve fund, to the extent the bond reserve fund can be brought back to required funding levels with just one such levy. If for any reason the bond reserve fund remains underfunded in a fiscal year following the fiscal year in which facilities special taxes were levied to replenish it, a second facilities special tax levy should not be required to replenish the bond reserve fund.

Administrative Expenses
Administrative expenses of the CFD are the reasonable costs of administering the CFD each fiscal year. Examples of administrative expenses are costs of computing facilities special taxes and preparing annual facilities special taxes collection schedules; costs of collecting the facilities special taxes; costs of remitting the facilities special taxes to the Trustee; costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Bond Indenture; costs to the City, the CFD, or their designees of complying with arbitrage rebate requirements; costs complying with the City, the CFD, or obligated persons disclosure requirements; costs associated with preparing special taxes disclosure statements; costs incurred in responding to public inquiries regarding the facilities special taxes; costs related to any appeal of the facilities special taxes; and amounts estimated to be advanced or advanced by the City for any other administrative purposes, including attorney’s fees and other costs related to collection of the facilities special taxes and commencing and pursuing to completion any foreclosure of delinquent special taxes.

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Amounts for Unpaid Facilities Special Taxes and Anticipated Delinquencies
The RMA allows for the levy of a facilities special tax to fund costs of unpaid facilities special taxes from a previous fiscal year or to fund anticipated facilities special tax delinquencies that may occur in the current fiscal year for which facilities special taxes are being levied. To the extent an amount is levied for a past delinquency, a second facilities special tax levy should not be levied for a facilities special tax delinquency that has already been accounted for in a previous-year facilities special tax levy.

Generally, facilities special taxes eventually are brought current, either through payment by a property owner or through judicial foreclosure proceedings. When facilities special tax installments are paid current, the amount needed to fund debt service and CFD administration will have been collected for previous years, including additional amounts that were needed only to cover delinquencies that are now current. As such, these additional amounts should be considered as being available by the CFD to fund annual facilities costs in the following fiscal year.

Authorized Facilities Funded on a PAYGO Basis
During the first 30 years, the DA entitles the Developer to use PAYGO revenues to fund authorized facilities. As such, facilities special tax revenues not needed to pay debt service during the first 30 years of the facilities special tax levy may be used to fund authorized CFD costs not otherwise funded with CFD bond proceeds.

Development Impact Fee Deferrals
As stated earlier, the DA entitles the Developer to defer certain development impact fees identified in the DA, which may be amended from time to time.

Eligible fees include the SPRTA Tier II Traffic Fee and three selected City fees.

To preserve the City’s ability to obtain reimbursement for deferred fees, each series of CFD bonds that may be issued will be structured based on the revenues that are pledged toward that bond sale without consideration of wrapping debt service around a previous CFD bond sale. The concept generally is that once a taxable parcel has been taxed as a developed parcel for 30 years and that tax was used to pay debt service on a series of CFD bonds, the future facilities special tax levy on that parcel should be available for the City to recover deferred impact fees for that parcel.

It is not anticipated that the Developer will request that CFD bonds be issued to fund Authorized Facilities. Instead, it is expected that an initial bond issuance will be used to fund deferred development impact fees.

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Earnings on Reserve Funds, Special Tax Funds, and Other Funds All interest earnings on bond reserve funds, facilities special tax funds, or other funds should be used to offset annual costs when determining the amount required for the annual facilities special tax levy.

Transition Event and Maintenance
Special Taxes
Following the initial bonding period, and when the administrator determines the development impact fee deferral has been repaid in full or beginning FY 2087-88 (whichever occurs first), the administrator will determine that the Transition Event has occurred. In the fiscal year following the Transition Event, the City shall no longer levy and collect the facilities special tax and will, in turn, begin the levy and collection of the maintenance special tax to fund the costs of authorized services, as defined in a previous chapter.

Definition of Annual Maintenance Costs
The maximum annual maintenance special tax established under the RMA is the maximum exposure to an annual maintenance special tax levy for a given parcel of land. The actual amount of the levy is derived through determining the “annual maintenance costs” of the CFD. The RMA identifies the annual maintenance costs components as:
a. Authorized services costs to be paid from maintenance special taxes. b. Administrative expenses for such fiscal year.
c. The amount needed (1) to cure any delinquencies in the payment of the maintenance special tax in the prior fiscal year, to the extent not otherwise included in a computation of annual maintenance costs in the current or any previous fiscal year and (2) to fund any foreseeable deficiency in the payment of the maintenance special tax for that fiscal year, which is expected to occur in such fiscal year, to the extent not included in a computation of annual maintenance costs in the current or any previous fiscal year. d. Less any available earnings on any reserve fund, maintenance special tax funds, or any other available revenues of the CFD or the City that may be used to fund annual maintenance costs.

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Assignment of Maximum Annual Special
Tax
Sections 4 and 5 of the RMA describe in detail the precise method for assigning the maximum annual facilities special tax, maximum annual maintenance special tax, and maximum annual special tax to parcels in the CFD. The RMA assigns a total maximum annual special tax to taxable parcels based on parcel configurations at the time of formation of the CFD and then as subdivision maps are recorded. Original parcels are those parcel configurations when the CFD is formed. Successor parcels are created as large lot subdivision maps are recorded, and then small lot final maps are recorded, defining individual buildable residential lots.

Original Parcels
Original parcels are assigned a maximum annual facilities special tax using Attachment 3 of the RMA. Attachment 3 (Table 4 of this document) shows the total maximum facilities annual special tax and maximum annual facilities special tax per unit or per acre for each of the 5 original parcels.

Attachment 4 (Table 5 of this document) shows the assigned maximum annual maintenance special tax before and after the Transition Event, for all tax categories.

Successor Parcels
Successor parcels are created when original parcels are subdivided by the recording of large lot subdivision maps or other parcel reconfigurations, such as through a lot line adjustment, and further subdivided into buildable residential lots. The RMA provides specific detail and definitions used in allocating the maximum annual facilities special tax to parcels in their final use, whether as residential or nonresidential parcels.

Attachment 3 (Table 4 of this document) shows the maximum annual facilities special tax for planned large lot parcels. Each large lot is assigned one tax category, the number of planned residential units, and a maximum annual facilities special tax per unit or per acre. The maximum annual facilities special tax for a large lot parcel is the sum of the number of units in the tax category multiplied by the maximum annual facilities special tax for the tax category.

If fewer units are realized at recordation of a final map defining buildable lots than shown in Table 4, the maximum annual facilities special tax for the large lot parcel is divided by the actual number of residential units created by the final map to determine the maximum annual facilities special tax per unit. If more residential units are created by a final map than shown in Table 4, the maximum annual facilities special tax per unit is that amount shown in Table 4.

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The RMA is structured to ensure that the maximum annual facilities special tax for a large lot is not reduced over time by anticipated development of each large lot.

The facilities special tax revenue for large lot parcels may increase if higher densities are realized over time.

Maximum annual maintenance special taxes are identified for tax categories in Attachment 4 (Table 5 of this document).

Affordable Units
No affordable units are planned to be built in the CFD. Affordable units are assigned zero tax rates for facilities taxes and maintenance taxes. Section 4.e of the RMA discusses the assignment of the maximum annual special tax to affordable residential lots that are converted to market-rate housing units.

Conversion of a Tax-Exempt Parcel to a
Taxable Parcel
If a tax-exempt parcel is not needed for public use or other nontaxable use and is converted to a taxable use or transferred to a private owner, it will become subject to the special tax. The maximum annual special tax for the newly assigned tax category for such a parcel is determined using the provisions of Sections 4 and 5 of the RMA.

Taxable Parcels Acquired by a Public
Agency
A taxable parcel that is acquired by a public agency after the CFD is formed will remain subject to the applicable special tax unless the special tax obligation is satisfied pursuant to Section 53317.5 of the Government Code. An exception to this may be made if a public parcel, such as a school site, is relocated to a taxable parcel, in which case the previously tax-exempt parcel of comparable acreage becomes a taxable parcel and the maximum annual special tax from the previously taxable parcel is transferred to the new taxable parcel. This trading of a parcel from a taxable parcel to a public parcel will be permitted to the extent there is no net loss in maximum CFD special tax revenue and the transfer is agreed to by the owners of the parcels involved in the transfer and the Finance Director.

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Determination of Parcels Subject to
Special Tax
By June 30 of each fiscal year, using the definitions in Section 2 of the RMA, the parcel records of the Assessor’s Secured Tax Roll as of January 1, and other City development approval records, the administrator will cause:

1. Each parcel to be classified as a taxable parcel or a tax-exempt parcel.

2. Each parcel to be classified as a developed parcel, a small lot tentative map parcel, a large lot parcel (including remainder parcels), or an undeveloped parcel.

Setting the Facilities Special Tax Levy
for Taxable Parcels
To determine the annual levy, the administrator will use the process presented in Section 7 of the RMA. In general, the provisions of Section 7 describe the following procedures to set the annual facilities special tax levy for each taxable parcel:
 First, the administrator must compute the annual facilities costs using the definitions in Section 2 of the RMA. Next, the administrator will levy the facilities special tax proportionately on all developed parcels, up to the amount of annual facilities costs or 100 percent of the maximum facilities special tax for developed property, whichever is less.
 If additional revenue is needed for annual facilities costs, the administrator shall levy the facilities special tax proportionately on all small lot tentative map parcels, such that when added to the levy on developed parcels, it is up to the amount of annual facilities costs or up to 100 percent of the maximum facilities special tax for small lot tentative map parcels, whichever is less.  If additional revenue is needed for annual facilities costs, the administrator shall levy the facilities special tax proportionately on all large lot parcels, such that when added to the levies on parcels described above, it is up to the amount of annual facilities costs or up to 100 percent of the maximum facilities special tax for large lot parcels, whichever is less.  If additional revenue is needed for annual facilities costs, the administrator shall levy the facilities special tax proportionately on all undeveloped parcels, such that when added to the levies on parcels described above, it is up to the amount of annual facilities costs or up to 100 percent of the maximum facilities special tax for large lot parcels, whichever is less.

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Once the facilities special tax levy is determined for a fiscal year, the administrator creates the tax schedule to deliver to the County Auditor-Controller.

Setting the Maintenance Special Tax
Levy for Taxable Parcels
Beginning in the transition year, the administrator will use the process presented in Section 7 of the RMA to set the annual maintenance special tax levy.

In general, the provisions of Section 7 describe the following procedures to set the annual maintenance special tax levy for each taxable parcel:
 First, the administrator must compute the annual maintenance costs using the definitions in Section 2 of the RMA. Next, the administrator will levy the maintenance special tax proportionately on all developed parcels, up to the amount of annual maintenance costs or 100 percent of the maximum maintenance special tax for developed property, whichever is less.  If additional revenue is needed for annual maintenance costs, the administrator shall levy the maintenance special tax proportionately on all small lot tentative map parcels, such that when added to the levy on developed parcels, it is up to the amount of annual maintenance costs or up to 100 percent of the maximum maintenance special tax for small lot tentative map parcels, whichever is less.
 If additional revenue is needed for annual maintenance costs, the administrator shall levy the maintenance special tax proportionately on all large lot parcels, such that when added to the levies on parcels described above, it is up to the amount of annual maintenance costs or up to 100 percent of the maximum maintenance special tax for large lot parcels, whichever is less.
 If additional revenue is needed for annual maintenance costs, the administrator shall levy the maintenance special tax proportionately on all undeveloped parcels, such that when added to the levies on parcels described above, it is up to the amount of annual maintenance costs or up to 100 percent of the maximum maintenance special tax for large lot parcels, whichever is less.

Once the maintenance special tax levy is determined for a fiscal year, the administrator creates the tax schedule to deliver to the County Auditor-Controller.

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Prepayment of the Special Tax
Obligation
For residential uses, a property owner may at any time prepay 50 percent, but not more or less than 50 percent, of the maximum annual facilities special tax.

Full prepayment is permissible for nonresidential use parcels. In addition to the above, full or partial prepayment is permitted only under the following conditions:
 The landowner prepaying the facilities special tax on a parcel has paid any delinquent facilities special tax and penalties on that parcel before prepayment.
 Following prepayment, amounts in the reserve fund are equal to or greater than the reserve fund requirement.
 The City determines the prepayment will not jeopardize its ability to make timely payments of debt service and maintain a 110 percent annual debt service coverage based on maximum annual special tax revenues in all years in which issued bonds will be outstanding.
 The portion of the prepayment for the development impact fee deferral shall only be used to pay for the development impact fee deferral whether it was or is to be funded through annual special tax payments or through bonded indebtedness.

The full and partial prepayment calculations are described in detail in Section 8 of the RMA. Partial prepayments also must account for collection of any development impact fee deferral for a given parcel.

Interpretation, Application, and Appeal
of Special Tax Formula and Procedures
Any taxpayer who feels the amount of the special tax assigned to a parcel is in error may file a notice with the administrator appealing the levy of the special tax.

The administrator then will promptly review the appeal and, if necessary, meet with the applicant. If the administrator verifies that the tax should be modified or changed, the special tax levy will be corrected and, if applicable in any case, a credit or refund will be granted.

Interpretations may be made by the City, without resolution or ordinance of the City Council, for purposes of clarifying any vagueness or ambiguity as it relates to the special tax rate, the method of apportionment, the classification of properties, or any definition applicable to the CFD.

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Without City Council approval, the Finance Director may make minor, nonsubstantive administrative and technical changes to the provisions of the RMA that do not materially affect the rate, method of apportionment, or manner of collection of the special tax for purposes of administrative efficiency or convenience or to comply with new applicable federal, state, or local law.

Manner of Collection
The special tax will be collected in the same manner and at the same time as ad valorem property taxes. As specified in Section 10 of the RMA, the administrator or their designee may directly bill the special tax and may collect the special tax at a different time, such as on a monthly or other periodic basis, or in a different manner, if necessary, to meet the City’s financial obligations.

EXHIBITS:

Exhibit A: Facilities Rate, Method of
Apportionment, and Manner of
Collection of Special Tax
Exhibit B: List of Authorized
Facilities and Services
EXHIBIT A:

Facilities Rate, Method of Apportionment, and
Manner of Collection of Special Tax
Economic & Planning Systems, Inc. (EPS) A-1 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Rate and Method\222084 rm1.docx

EXHIBIT A
City of Roseville
Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities)
Placer County, California

RATE, METHOD OF APPORTIONMENT, AND

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit A September 26, 2022
Economic & Planning Systems, Inc. (EPS) A-2 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Rate and Method\222084 rm1.docx g. Costs associated with preparing Special Tax disclosure statements. h. Costs incurred in responding to public inquiries regarding the Special Taxes. i. Costs to the City, CFD, or designee thereof related to any appeal of the Special Taxes. j. Costs associated with the release of funds from an escrow account, if any. k. Costs to the City for the issuance of Bonds authorized by the CFD that are not recovered through the Bond sale proceeds.
l. Amounts estimated to be advanced or already advanced by the City for any other administrative purposes, including attorney’s fees and other costs related to collection of the Special Taxes and commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
“Administrator” means a City official in the Finance Department, or their designee responsible for determining or overseeing the levy and collection of the Special Taxes. “Affordable Housing Director” means, at any point in time, the person in the City who serves as head of the department that is in charge of the City’s affordable housing program. “Affordable Unit” means a Unit built on a Residential Use Parcel for which an Affordable Unit agreement has been entered into for the property designating the Unit as affordable.

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit A September 26, 2022
Economic & Planning Systems, Inc. (EPS) A-3 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Rate and Method\222084 rm1.docx e. The amount needed to (1) cure any delinquencies in the payment of the Facilities Special Tax in the prior Fiscal Year, to the extent not otherwise included in a computation of Annual Facilities Costs in the current or any previous Fiscal Year, and (2) to fund any foreseeable deficiency in the payment of the Facilities Special Tax for that Fiscal Year which is expected to occur in such Fiscal Year, to the extent not included in a computation of Annual Facilities Costs in the current or any previous Fiscal Year.
f. Authorized Pay-As-You-Go Costs.
g. During the Deferral Bonding Period, the amount needed to pay Development Impact Fee Deferrals not financed by Bonds.
h. Less any available earnings on any reserve fund or Facilities Special Tax funds, available capitalized interest or any other available revenues of the CFD or the City that may be used to fund Annual Facilities Costs.
“Annual Maintenance Costs” means, for any Fiscal Year, the total of these:
a. Authorized Services costs to be paid from Maintenance Special Taxes. b. Administrative Expenses for such Fiscal Year.
c. The amount needed to (1) cure any delinquencies in the payment of the Maintenance Special Tax in the prior Fiscal Year, to the extent not otherwise included in a computation of Annual Maintenance Costs in the current or any previous Fiscal Year, and (2) to fund any foreseeable deficiency in the payment of the Maintenance Special Tax for that Fiscal Year which is expected to occur in such Fiscal Year, to the extent not included in a computation of Annual Maintenance Costs in the current or any previous Fiscal Year. d. Less any available earnings on any reserve fund, Maintenance Special Tax funds or any other available revenues of the CFD or the City that may be used to fund Annual Maintenance Costs.
“Assessor’s Parcel” means a lot or Parcel with an assigned Assessor’s Parcel Number in the maps used by the County Assessor in preparing the tax roll. “Assessor’s Parcel Map” means an official map of the County Assessor designating Parcels by Assessor’s Parcel Number.
“Assessor's Parcel Number” means the Parcel and Parcel Number as assigned by the County Assessor on the equalized tax roll.
“Assigned Maximum Annual Special Tax” means the maximum Facilities Special Tax or Maintenance Special Tax assigned to each Large Lot Parcel that is an Original Parcel based on the Expected Land Uses at CFD formation, or at annexation, as shown in Attachment 1. “Authorized Facilities” means those facilities and fees to be financed, as identified in the resolution forming the CFD.
“Authorized Services” means those services authorized to be funded, as defined in the resolution forming the CFD.

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit A September 26, 2022
Economic & Planning Systems, Inc. (EPS) A-4 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Rate and Method\222084 rm1.docx “Base Year” means the Fiscal Year beginning July 1, 2023 and ending June 30, 2024. “Bond(s)” means any bond(s) issued by the City for the CFD under the Act and any other debt, as defined in the Act, the City incurs to further the CFD’s purposes. “Bond Indenture” means the indenture, resolution, fiscal agent agreement, or other financing document pursuant to which any Bonds are issued.
“Building Permit” means a permit issued by the City for the construction of a Residential Use or Nonresidential Use structure.
“CFD” means the Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities) of the City of Roseville, Placer County, California.
“City” means the City of Roseville in Placer County, California. “Council” means the City Council of the City acting for the CFD under the Act. “County” means the County of Placer, California.
“Debt Service” means the total annual amount of Bond principal, interest, and the scheduled sinking fund payments of the Bonds in a calendar year.
“Deferral Bonding Period” means the period after the Initial Bonding Period has ended and during which the City finances the Development Impact Fee Deferral. “Developed Parcel” means, in any Fiscal Year:
a. For Single-Family Parcels: All Parcels for which a Final Small Lot Subdivision Map was recorded before May 1 of the preceding Fiscal Year.
b. For Multifamily Parcels: All Parcels for which a Building Permit for new construction of a Residential Use structure was issued before May 1 of the preceding Fiscal Year. c. For all Nonresidential Use Parcels: All Parcels for which a Building Permit for new construction of a Nonresidential Use structure was issued before May 1 of the preceding Fiscal Year.
“Development Agreement” means the Development Agreement By and Between the City of Roseville and Mourier Investments, LLC, relative to the Sierra Vista Specific Plan dated April 28, 2010.
“Development Impact Fee Deferral” means the deferred payment of development impact fees due to the City or the South Placer Regional Transportation Authority (SPRTA) for Developed Parcels, using the approach and amounts identified in the Development Agreement, which may be amended from time to time.
“Development Plan” means a condominium plan, apartment plan, site plan, or other development plan that identifies such information as the type of structure, acreage, square footage, or number of Units that are approved to be developed on Single-Family Parcels, Multifamily Parcels, and Nonresidential Parcels.

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit A September 26, 2022
Economic & Planning Systems, Inc. (EPS) A-5 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Rate and Method\222084 rm1.docx “Expected Land Use(s)” means the total number of Units or Acres of each land use type by Tax Category expected in each Large Lot Parcel and Original Parcel at CFD formation as identified in Attachment 3 of this RMA.
“Facilities Special Tax” means the Special Tax authorized to fund Annual Facilities Cost.

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit A September 26, 2022
Economic & Planning Systems, Inc. (EPS) A-6 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Rate and Method\222084 rm1.docx “Master Developer” means FD-24 LLC, or any affiliate of FD-24 LLC, that will own and rent Developed Parcels initially after the formation of the CFD. “Maximum Annual Special Tax” means the greatest amount of Facilities Special Tax or Maintenance Special Tax that can be levied against a Parcel in a given Fiscal Year, as shown in Attachments 2, 3, and 4.
“Maximum Annual Facilities Special Tax” means the greatest amount of Facilities Special Tax that can be levied against a Parcel in a given Fiscal Year, as shown in Attachments 2, 3, or 4. “Maximum Annual Maintenance Special Tax” means the greatest amount of Maintenance Special Tax that can be levied against a Parcel in a given Fiscal Year, as shown in Attachments 2, 3, or 4.
“Maximum Annual Special Tax Rate” means the rate of Facilities Special Tax or Maintenance Special Tax charged per Unit or per Taxable Acre, as shown in Attachments 2, 3, and 4. “Maximum Annual Facilities Special Tax Revenue” means the greatest amount of Facilities Special Tax revenue that can be collected in total from a group of Parcels (such as Developed Parcels) by levying the Maximum Annual Facilities Special Tax. “Maximum Annual Maintenance Special Tax Revenue” means the greatest amount of Maintenance Special Tax revenue that can be collected in total from a group of Parcels (such as Developed Parcels) by levying the Maximum Annual Maintenance Special Tax. “Maximum Annual CFD Special Tax Revenue” means the sum of the Maximum Annual Special Tax levied on all Taxable Parcels in the CFD in a Fiscal Year. “Medium Density Residential” means, per the Sierra Vista Specific Plan, a land use designation that accommodates both single-family detached homes and attached homes within the density range of 7.0 to 12.9 dwelling units per gross developable acre. Typical housing product types include, but shall not be limited to, standard or alley-loaded lots, courtyard lots, green court lots, auto courts, alley clusters, zero-lot lines, or z-shaped lots. In addition, duet/half-plex homes, townhomes, or condominiums may be accommodated in Medium Density Residential areas.
“Nonresidential Use” means a Taxable Parcel zoned for land uses other than Residential Uses which may include Business Professional, Community Commercial and Mixed Use. “Original Parcel” means a Taxable Parcel identified in Attachment 1 at formation of the CFD. “Parcel” means any Assessor’s Parcel in the CFD based on the equalized tax rolls of the County as of January 1 of each Fiscal Year.
“Partial Prepayment” means the partial fulfillment of a Parcel’s Facilities Special Tax obligation, as determined by following the procedures in Section 8. “Pay-As-You-Go Costs” means that portion of costs of acquisition, construction, and improvement of Authorized Facilities not financed by Bonds. “Prepayment” means the full or partial fulfillment of a Parcel’s Facilities Special Tax obligation, as determined by following the procedures in Section 8.

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit A September 26, 2022
Economic & Planning Systems, Inc. (EPS) A-7 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Rate and Method\222084 rm1.docx “Proportionately” means that the ratio of the actual Special Tax levy to the Maximum Annual Special Tax is equal for all Developed Parcels. For Small Lot Tentative Map Parcels, Proportionately means that the ratio of the actual Special Tax levy to the Maximum Annual Special Tax is equal for all Small Lot Tentative Map Parcels. For Large Lot Parcels, Proportionately means that the ratio of the actual Special Tax levy to the Maximum Annual Special Tax is equal for all Large Lot Parcels. For Undeveloped Parcels, Proportionately means that the ratio of the actual Special Tax levy to the Maximum Annual Special Tax is equal for all Undeveloped Parcels.
“Public Parcel” means any Parcel that is or is intended to be publicly owned, as designated in any final map, that is normally exempt from the levy of general ad valorem property taxes under California law, including, but not limited to, public streets, schools, parks, and public drainageways, landscaping, wetlands, greenbelts, and open space. “Remainder Parcel” means a portion of a unit of land that is created as a result of the recording of a Large Lot Parcel Map or Final Small Lot Subdivision Map, which results in a designated remainder as defined in Government Code Section 66424.6(a) (Remainder Parcel).

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit A September 26, 2022
Economic & Planning Systems, Inc. (EPS) A-8 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Rate and Method\222084 rm1.docx “Successor Parcel” means a Parcel created by the Subdivision of an Original Parcel or a Successor Parcel.
“Tax Category” means the categories of taxable land uses shown in Attachments 2 and 4. “Tax Collection Schedule” means the document prepared by the Administrator for the County Auditor-Controller to use in levying and collecting the Special Taxes each Fiscal Year. “Tax Escalation Factor” means a factor of 2 percent by which the Maximum Annual Facilities Special Tax, Maximum Annual Maintenance Special Tax and related Maximum Annual Special Tax Rates shall be increased annually until the Transition Event. After the Transition Event, the Maximum Annual Maintenance Special Tax may be increased up to 2 percent annually at the City’s discretion. The Administrator should refer to Section 4a for application of the Tax Escalation Factor.
“Taxable Acreage” means that area of a Parcel determined by the Administrator to become a Taxable Parcel or Parcels upon further Subdivision. An example might be that a Large Lot Parcel Map creates a Remainder Parcel that, according to Attachment 1, contains both taxable uses and tax-exempt uses.
“Taxable Parcel” means any Parcel that is not a Tax-Exempt Parcel. “Tax-Exempt Parcel” means a Parcel not subject to the Annual Special Tax. Tax-Exempt Parcels include (a) Public Parcels, and (b) Parcels owned by the City, school districts, special districts, or the state or federal government. A Taxable Parcel that is acquired by a public agency, the Parcel shall remain a Taxable Parcel as per the provisions of Section 4.f.

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit A September 26, 2022
Economic & Planning Systems, Inc. (EPS) A-9 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Rate and Method\222084 rm1.docx 3 . D u r a t i o n o f t h e S p e c i a l T a x
The Facilities Special Tax will be levied and collected until the earlier of (i) the Transition Year or (ii) Fiscal Year 2087-88. The Maintenance Special Tax will be levied and collected beginning in the Transition Year. The Maintenance Special Tax will be collected in perpetuity. 4 . A dm i n i s t r a t i v e T a s k s f o r t h e F a c i l i t i e s S p e c i a l Ta x
Tasks required of the Administrator are discussed below:
a. Annual Special Tax Escalation. Until the Transition Event, the Administrator shall increase the Maximum Annual Facilities Special Tax, the Maximum Annual Maintenance Special Tax and Maximum Annual Special Tax Rates by the Tax Escalation Factor in all Fiscal Years following the Base Year. After the Transition Event, the City, in its sole discretion, may determine whether to apply the Tax Escalation Factor to the Maximum Annual Maintenance Special Tax in any Fiscal Year.
b. Assignment of the Maximum Annual Facilities Special Tax to Original Parcels. Attachment 3 identifies the Assigned Maximum Annual Facilities Special Tax for each Original Parcel at CFD formation, which is determined for each Large Lot Parcel based on the Expected Land Uses in each Large Lot Parcel at CFD Formation. The Assigned Maximum Annual Facilities Special Tax shall continue to apply to the geographic area to which it was assigned. If, before further Subdivision, the Administrator determines there are multiple Assessor’s Parcels in a Large Lot Parcel, the Administrator shall assign the Maximum Annual Facilities Special Tax to each Assessor’s Parcel on a pro rata basis to all Assessor’s Parcels in that Large Lot Parcel based on the percentage share of Taxable Acreage identified for each Assessor’s Parcel.

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit A September 26, 2022
Economic & Planning Systems, Inc. (EPS) A-10 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Rate and Method\222084 rm1.docx A. Multiply the Maximum Annual Facilities Special Tax per Unit by Tax Category from Attachment 2 by the number of Units for each Single-Family Parcel created by the Subdivision. Sum the Maximum Annual Facilities Special Taxes for all Single-Family Parcels created by the Subdivision.

B. For each area Subdivided into Single-Family Parcels, multiply the Maximum Annual Facilities Special Tax per Unit by Tax Category from Attachment 2 by the number of Units for each Single-Family Parcel created by the Subdivision. Sum the Maximum Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit A September 26, 2022
Economic & Planning Systems, Inc. (EPS) A-11 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Rate and Method\222084 rm1.docx Annual Facilities Special Taxes for all Single-Family Parcels created by the Subdivision.

F. For the Remainder Parcel or Parcels, identify the Maximum Annual Facilities Special Tax for the entire Original or Successor Parcel that has been Subdivided. Sum the Maximum Annual Facilities Special Tax for all Single-Family Parcels created by the Subdivision, including Single-Family Parcels with Affordable Units. Subtract the sum of the Maximum Annual Facilities Special Tax for all Single-Family Parcels from the Assigned Maximum Annual Facilities Special Tax for the Original or Successor Parcel being subdivided and compare it to the Maximum Annual Facilities Special Tax assigned to the Remainder Parcel or Parcels in Step 4.c.2.A. Assign to each Remainder Parcel, the lesser of the calculations in this step or in Step 4.c.2.A, but in no event less than the difference between the previously Assigned Maximum Annual Facilities Special Tax for the Original Parcel or Successor Parcel being Subdivided and Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit A September 26, 2022
Economic & Planning Systems, Inc. (EPS) A-12 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Rate and Method\222084 rm1.docx the total of the Maximum Annual Facilities Special Tax for all Single-Family Parcels created by such Subdivision.

Once designated as a Remainder Parcel, such Parcel will be considered a Large Lot Parcel for the purposes of future Subdivisions and for the provisions of Sections 4 through 6.

3. If an Original or Successor Parcel is Subdivided creating multiple land uses and Tax Categories or for any rezones of land uses on Original or Successor Parcels:

A. Identify the Assigned Maximum Annual Facilities Special Tax for the Original Parcel or Successor Parcel that is being Subdivided or rezoned.

D. If the Assigned Maximum Annual Facilities Special Tax for the Original Parcel or Successor Parcel subject to rezone or that is being subdivided is greater than the sum of Maximum Annual Facilities Special Tax for each Successor Parcel being created, increase Proportionately the Maximum Annual Facilities Special Tax per Unit or per Acre for all Tax Categories on each Taxable Parcel such that the sum of Maximum Annual Facilities Special Tax for all Taxable Parcels equals the Assigned Maximum Annual Facilities Special Tax for the Original Parcel.
d. Affordable Units that Become Market-Rate Units. If, in any Fiscal Year, the City Manager, or his or her designee, determines that a Unit that previously had been designated as an Affordable Unit no longer qualifies as such, the Affordable Housing Director shall update the Affordable Unit listing by denoting the change in status of the Unit, together with the effective date thereof. For all Affordable Units that are converted to Market-Rate Units, such Units shall be assigned the Maximum Annual Facilities Special Tax per Unit based on their Tax Category as shown in Attachment 2, as adjusted by the Tax Escalation Factor. e. Conversion of a Tax-Exempt Parcel to a Taxable Parcel. If a Tax-Exempt Parcel is not needed for public use and is converted to a taxable use or transferred to a private owner, it shall become subject to the Facilities Special Tax. The Maximum Annual Facilities Special Tax for the newly Taxable Parcel will be determined using the provisions of Sections 4 and 5 of the RMA.
f. Taxable Parcels Acquired by a Public Agency. A Taxable Parcel that is acquired by a public agency after the CFD is formed will remain subject to the applicable Special Tax unless the Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit A September 26, 2022
Economic & Planning Systems, Inc. (EPS) A-13 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Rate and Method\222084 rm1.docx Special Tax obligation is satisfied pursuant to Section 53317.5 of the Government Code.

Attachment 1 may be amended, or a new attachment created, to include the Annexation Parcels and, if necessary, the applicable tax rates. If new Maximum Annual Maintenance Special Taxes are created, Attachment 4 should be amended to reflect the Maximum Annual Maintenance Special Taxes for the Annexation Parcels. Once annexed, these annexed Parcels shall be considered Original and Successor Parcels and will be subject to the same procedures for assignment of the Maximum Annual Maintenance Special Tax to Successor Parcels described in this section. The owner of the Annexation Parcels shall be responsible for paying all costs associated with annexing the Annexation Parcels to the CFD, but otherwise shall not be required to pay any other charge, fee or catch-up special tax in Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit A September 26, 2022
Economic & Planning Systems, Inc. (EPS) A-14 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Rate and Method\222084 rm1.docx connection with or as a condition of such annexation unless otherwise agreed to by the owner of the Annexation Parcel in connection with the annexation. d. Affordable Units that Become Market-Rate Units. If, in any Fiscal Year, the City Manager, or his or her designee, determines that a Unit that previously had been designated as an Affordable Unit no longer qualifies as such, the Affordable Housing Director shall update the Affordable Unit listing by denoting the change in status of the Unit, together with the effective date thereof. For all Affordable Units that are converted to Market-Rate Units, such Units shall be assigned the Maximum Annual Maintenance Special Tax per Unit based on their Tax Category as shown in Attachment 4, as adjusted by the Tax Escalation Factor. e. Conversion of a Tax-Exempt Parcel to a Taxable Parcel. If a Tax-Exempt Parcel is not needed for public use and is converted to a taxable use or transferred to a private owner, it shall become subject to the Maintenance Special Tax. The Maximum Annual Maintenance Special Tax for the newly Taxable Parcel will be determined using the provisions of Sections 5 and 6 of the RMA.
f. Taxable Parcels Acquired by a Public Agency. A Taxable Parcel that is acquired by a public agency after the CFD is formed will remain subject to the applicable Special Tax unless the Special Tax obligation is satisfied pursuant to Section 53317.5 of the Government Code.

An exception to this may be made if a Public Parcel, such as a park site, is relocated to a Taxable Parcel, in which case the previously Tax-Exempt Parcel of comparable acreage becomes a Taxable Parcel and the Maximum Annual Maintenance Special Tax from the previously Taxable Parcel is transferred to the new Taxable Parcel. This trading of a Parcel from a Taxable Parcel to a Public Parcel will be permitted to the extent there is no net loss in Maximum Annual CFD Special Tax Revenue and the transfer is agreed to by the owners of the Parcels involved in the transfer and the Finance Director 6 . A s s i g nm e n t o f t h e M a x im um A n n u a l S p e c i a l T a x a. Classification of Parcels. For purposes of the next Fiscal Year tax levy, by June 30 of each Fiscal Year, using the Definitions in Section 2, the Parcel records of the Assessor’s secured tax roll as of January 1, and other City development approval records, the Administrator shall cause:

1. Each Parcel to be classified as a Taxable Parcel or Tax-Exempt Parcel.

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit A September 26, 2022
Economic & Planning Systems, Inc. (EPS) A-15 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Rate and Method\222084 rm1.docx d. Assignment of the Maximum Annual Maintenance Special Tax to Taxable Parcels. The Maximum Annual Maintenance Special Tax will be assigned to each Taxable Parcel each Fiscal Year using the procedures (not all steps may be applicable for each such Parcel) in Sections 4 and 5.
7 . C a l c u l a t i n g A n n u a l S p e c i a l T a x e s This section discusses the levy of the Facilities Special Tax and the Maintenance Special Tax.

Collectively, these Special Taxes are included in the discussion of the assignment of the Maximum Annual Special Taxes.

The Initial Special Tax levy will occur initially in the Fiscal Year following the Fiscal Year in which the First Home Sale Trigger Event occurs.

Step 7.b.3. If additional revenue is needed after Step 7.b.2., the Facilities Special Tax shall be levied proportionately on each Large Lot Parcel until the revenue from the Facilities Special Tax levy in this step, when added to the levy amount computed through Step 7.b.2., equals the Annual Facilities Costs, or up to 100 percent of the Maximum Annual Facilities Special Tax Revenue for all Large Lot Parcels. As necessary, the Facilities Special Tax shall be levied on Large Lot Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit A September 26, 2022
Economic & Planning Systems, Inc. (EPS) A-16 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Rate and Method\222084 rm1.docx Parcels for the entire portion of Annual Facilities Costs, excluding Pay-As-YouGo Costs.

As necessary, the Facilities Special Tax shall be levied on Undeveloped Parcels for the entire portion of Annual Facilities Costs, excluding Pay-As-You-Go Costs.

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit A September 26, 2022
Economic & Planning Systems, Inc. (EPS) A-17 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Rate and Method\222084 rm1.docx The Administrator will make every effort to calculate the Special Tax correctly for each Parcel. It will be the burden of the taxpayer to identify any errors in determining which Parcels are subject to the tax and their Special Tax assignments. 8 . P r e p a ym e n t o f t h e F a c i l i t i e s S p e c i a l T a x O b l i g a t i o n
A property owner may at any time prepay 50 percent, but not more or less than 50 percent of the Maximum Annual Facilities Special Tax. For Nonresidential Use Parcels, Full Prepayment is permissible at any time. Full Prepayment is not allowable for Residential Use Parcels.

When permitted, the Administrator shall calculate Prepayments using the following steps:
a. The Full Prepayment amount shall be established by following the steps below:

Step 8.a.3: Using a discounted rate equal to the most current yield for the 30-Year Treasury Constant Maturity, calculate the net present value of the revenue stream Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit A September 26, 2022
Economic & Planning Systems, Inc. (EPS) A-18 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Rate and Method\222084 rm1.docx determined Step 8.a.2. If this yield is no longer available, the Administrator will select a yield rate from the most comparable type of security.

Step 8.a.4: Add to the amount calculated in Step 8.a.3 interest on the Bonds being redeemed to the next redemption date.

Step 8.a.5: Add to the amount calculated in Step 8.a.4 a redemption premium on the Bonds being redeemed (if any).

Step 8.a.7: Add the administrative cost of processing the Prepayment to the amount calculated in Step 8.a.6.

Step 8.a.8: The amount in Step 8.a.7 is the amount of the Full Prepayment of the Maximum Annual Special Tax for the Taxable Parcel.
b. Partial Prepayments will be calculated as described below:

The amount of any Partial Prepayment is limited to 50 percent of the Full Prepayment amount determined in Step 8.a.8. A Partial Prepayment may only be made in an amount equal 50 percent of the Full Prepayment desired by the party making a Partial Prepayment, except that the full amount of Administrative fees and expenses determined in Step 8.a.7 shall be included in the Partial Prepayment. The Facilities Special Tax that can be levied on a Parcel after a Partial Prepayment is made is equal to one-half of the Facilities Special Tax that could have been levied before the Partial Prepayment. 9 . I n t e r p r e t a t i o n , A p p l i c a t i o n , a n d A p p e a l o f S p e c i a l T a x F o rm u l a a n d P r o c e d u r e s Any taxpayer who feels the amount of the Special Tax assigned to a Parcel is in error may file a notice with the Finance Director appealing the levy of the Special Tax. The Finance Director then will promptly review the appeal and, if necessary, will meet with the applicant. If the Finance Director verifies that the tax should be modified or changed, the Special Tax levy will be corrected and, if applicable in any case, a credit or refund will be granted.

Rate, Method of Apportionment, and Manner of Collection of Special Tax Exhibit A September 26, 2022
Economic & Planning Systems, Inc. (EPS) A-19 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Rate and Method\222084 rm1.docx The City, upon request of an owner of land in the CFD that is not a Developed Parcel, also may amend this RMA in any manner acceptable to the City, without Resolution or Ordinance of the Council, upon the affirmative vote of such owner and without the vote of owners of any other land in the CFD, provided such amendment is only applicable to such owner’s land and does not reduce the total Maximum Annual CFD Special Tax Revenue. 1 0 . M a n n e r o f C o l l e c t i o n
The Special Tax will be collected in the same manner and at the same time as ad valorem property taxes, provided, however, the Administrator or its designee may directly bill the Special Tax and may collect the Special Tax at a different time, such as on a monthly or other periodic basis, or in a different manner, if necessary, to meet the City’s financial obligations.

Attachment 2
Parkside at Sierra Vista CFD No. 1 (Public Facilities)
Maximum Annual Special Taxes by Tax Category
for the Base Year of FY 2023-24 [1]
Maximum Annual
Special Tax
Expected Land Uses (Tax Category) Per Unit/Taxable Acre [1]
Residential Uses per Unit
Low Density Residential (LDR) $1,987.00
Medium Density Residential (MDR) $1,767.00
High Density Residential (HDR) [2]
High Density Residential (HDR) For-Sale [2] $0.00
High Density Residential (HDR) For-Rent [2] $0.00
Affordable Medium Density Residential $883.50
Affordable High Density Residential [2] $0.00
Nonresidential Uses [2] per Taxable Acre
Mixed Use (MU) [2] $0.00
Business Professional (BP) [2] $0.00
Community Commercial (CC) [2] $0.00
Undeveloped Property $13,757.00
"att2"
[1] This amount may be increased by the Tax Escalation Factor in each Fiscal Year following the Base Year as described in this RMA.
[2] If a Low Density Residential, Medium Density Residential or Affordable Medium Density Residential Parcel with a Special Tax is rezoned to a use with an identified Special Tax of $0 in this attachment, the Special Tax would be assigned to the Parcel using the provisions of Section 4 of this RMA.

Prepared by EPS 9/26/2022 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Models\222084 RMA Attachments Attachment 3
Parkside at Sierra Vista CFD No. 1 (Public Facilities)Assigned Maximum Annual Special Tax for Original Parcels (Base Year of FY 2023-24) [1] [2] Assigned Assigned
Planned Maximum Annual Maximum Annual
Original Village Tax Planned Units Special Tax Special Tax Parcel Number Category Acres Units per Acre per Unit per Village [1] [2] [1] [2]
498-180-001 FD-24 (Portion) MDR 4.63 30 6.5 $1,767.00 $53,010.00498-180-002 FD-24 (Portion) MDR 6.35 49 7.7 $1,767.00 $86,583.00498-180-003 FD-24 (Portion) MDR 6.36 56 8.8 $1,767.00 $98,952.00 CFD Totals 17.34 135 $238,545.00
"att3"
[1] This amount may be increased by the Tax Escalation Factor in each Fiscal Year following the Base Year as described in this RMA.[2] If amended to included Annexation Parcels, the Maximum Annual Special Tax for Annexation Parcels would also be subject to the Tax Escalation Factor.

Expected Land Uses
Prepared by EPS 9/26/2022 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Models\222084 RMA Attachments Attachment 4
Parkside at Sierra Vista CFD No. 1 (Public Facilities)
Maximum Annual Maintenance Special Taxes by Tax Category for the Base Year of FY 2023-24 [1]
Before After
Transition Transition
Expected Land Uses (Tax Category) Event Event
[1] [1]
Residential Uses per Unit per Unit
Low Density Residential (LDR) $0.00 $993.50
Medium Density Residential (MDR) $0.00 $883.50
High Density Residential (HDR) [2]
High Density Residential (HDR) For-Sale [2] $0.00 $0.00 High Density Residential (HDR) For-Rent [2] $0.00 $0.00 Affordable Medium Density Residential $0.00 $441.75
Affordable High Density Residential [2] $0.00 $0.00
Nonresidential Uses [2] per Taxable Acre
Mixed Use (MU) [2] $0.00 $0.00
Business Professional (BP) [2] $0.00 $0.00
Community Commercial (CC) [2] $0.00 $0.00
Undeveloped Property $0.00 $6,878.50
"att4"
[1] This amount is subject to increase by the Tax Escalation Factor in each Fiscal Year following the Base Year as described in this RMA.
[2] If a Low Density Residential, Medium Density Residential or Affordable Medium Density Residential Parcel with a Special Tax is rezoned to a use with an identified Special Tax of $0 in this attachment, the Special Tax would be assigned to the Parcel using the provisions of Section 4 of this RMA.

Maintenance Special Tax per Unit/Taxable Acre
Prepared by EPS 11/8/2022 Z:\Shared\Projects\SAC\222000\222084 Roseville FD-24 CFD Formation\Models\222084 RMA Attachments Map 1
EXHIBIT B:

List of Authorized Facilities and Services

EXHIBIT B
City of Roseville
Villages at Sierra Vista
Parkside at Sierra Vista Community Facilities District No. 1 (Public Facilities) Placer County, California

LIST OF AUTHORIZED FACILITIES AND SERVICES

AUTHORIZED FACILITIES
Improvements
Public roadway improvements designed to meet the needs of the project, including those improvements identified in the project Development Agreement (DA) Sections 3.5.17 and

3.5.18, including but not limited to;
• Federico Drive.
• Fiddyment Road.
• Market Street.
• Santucci Boulevard.
• Summerfaire Drive.
• Silver Spruce Drive.
• Sierra Glen Drive.
• Vista Park Drive.
• Vista Grande Boulevard.
• Westbrook Boulevard.

B-1
Potable and Non-Potable Water System Improvements
Authorized facilities include any and all on- and off-site backbone water facilities designed to meet the needs of development of the project. These facilities include potable and non-potable mains, valves, services, and appurtenances; wells; and water treatment and storage facilities, and related improvements, including but not limited to: site clearing, grading, and paving; curbs and gutters; recycled water storage tanks, booster pump stations, and all appurtenances thereto; wells; water treatment; stand-by generator; site lighting, drainage, sanitary sewer, and water service; landscaping and irrigation; access gates and fencing; striping and signage; and the following:
• Water lines in/associated with authorized facility roads. • Recycled water lines in/associated with authorized facility roads. • Well construction or financial contributions thereto on, but not limited to JM-60. • Water Tank Site Improvements (DA Section 3.8.2).
• Recycled Water Storage Tank Facility
• Reimbursement obligation for the Baseline Road 24” water line (DA Section

3.8.3).
• CFD obligations for RW tank(s) required by DA Section 3.9.

Wastewater System Improvements
Authorized facilities include any and all on- and off-site backbone wastewater facilities designed to meet the needs of development of the project. These facilities include pipelines and all appurtenances thereto; manholes; tie-in to existing main line; force mains; lift stations; odorcontrol facilities; sewer treatment plant improvements and permitting related thereto; and related sewer system improvements, including but not limited to:
• All wastewater facilities in/associated with authorized facility roadways.

Solid Waste Improvements
Authorized facilities include any and all backbone solid waste improvements designed to meet the needs of development of the project. Eligible improvements also include the B-2
project’s pro-rata contribution, as described in the project DA, to the Sierra Vista Specific Plan (SVSP) Solid Waste Recycling Center (DA Section

3.26(iii)).

Open Space Improvements
Authorized facilities include any and all open space improvements designed to meet the needs of development of the project, including bike trails, bike/pedestrian bridges, storm drain crossings, storm drain detention/retention, wetland mitigation, tree mitigation, on- and off-site hawk/raptor mitigation, agricultural mitigation or wetland mitigation, property acquisition, endowment payments for open space management, landscaping and irrigation, access gates and fencing, and related open space improvements, including but not limited to:
• Improvements as identified by the Specific Plan.
• Wetland creation mitigation, fencing, etc.

Utilities
Authorized facilities include any and all on- and off-site utility improvements designed to meet the needs of development of the project. All utility improvements, easement payments, and land acquisition not located under or alongside transportation improvements are considered authorized facilities. Authorized facilities also shall include costs related to the acquisition of the off-site electric substation site; site clearing; grading; street frontage improvements, including curbs, gutters, and paving; and construction of an all-weather access road to the site from the nearest public street or extension of temporary 12kV overhead lines as described in the project DA, including but not limited to:
• SVSP Electric Substation site acquisition, and improvements required by DA Section

3.11.3. • Temporary overhead 12kV lines to loop SVSP substation to line in WRSP Phase 3 and

B-3
• Fire Station site reimbursement obligations in DA Section 3.23.

B-4

NOTICE OF PUBLIC HEARING ON PROPOSED CITY OF ROSEVILLE PARKSIDE AT SIERRA VISTA COMMUNITY FACILITIES DISTRICT NO. 1 (PUBLIC FACILITIES)

CITY OF ROSEVILLE, PLACER COUNTY, CALIFORNIA
The City of Roseville is considering the formation of a community facilities district (the "CFD") under the authority of the Mello-Roos Community Facilities District Act of 1982, as amended, to fund certain public facilities related to new development within the City of Roseville, and to incur bonded indebtedness of the CFD.

This Notice contains a brief summary of the proposal, but you are referred to the City Council's Resolution of Intention to Form a Community Facilities District and Levy a Special Tax (No. 22-400, adopted October 19, 2022) and its Resolution of Intention to Incur Bonded Indebtedness (No. 22-401, adopted October 19, 2022) for details of the proposals.

The proposal is to subject the property within the CFD to a special tax which will be used to pay for authorized facilities within the CFD, including paying principal and interest on bonds used to build facilities, and will expire when the bonds are retired and all eligible facilities are financed. The proceeds of the bonds will be used to pay for the facilities and other expenses set forth in the resolutions referred to in the preceding paragraph. A map showing the land proposed to be included in the CFD is on file with the City Clerk.

As set forth below, the City Council will hold a public hearing on the establishment of the CFD, the facilities to be financed by the CFD, and the levy of the special tax within the CFD.

The proposal also includes authority to issue up to $15,000,000 in bonds to be repaid by the special tax. Neither the City of Roseville nor any person outside the CFD has any liability for the special tax or the bonds. The security for the bonds is limited to the property subject to the special tax within the CFD.

In order to confer the authority upon the City Council of the City of Roseville to levy the special tax and to issue the bonds, a public hearing must be held on the proposal, then the City Council will decide whether to form the CFD, and finally the qualified electors within the CFD must approve the proposal by a two-thirds vote. Where the CFD is uninhabited (as is the case here) the qualified electors are, pursuant to law, the owners of property within the CFD.

This is the notice of the public hearing. The public hearing will be held during the City Council meeting on December 7, 2022 at 6:00 p.m., in the Roseville Civic Center Council Chambers located at 311 Vernon Street, Roseville, California 95678.

At the hearing, the testimony of all interested persons or potential special taxpayers for or against the formation of the CFD, the authorization to levy the special tax, and the authorization to issue the bonds will be heard.

If written protests against the proposed CFD are delivered to the City Clerk at or before the time set for the hearing by either registered voters residing within, or the owners of property within, the proposed CFD, they will be counted toward a possible majority protest. Such protests by a majority of the registered voters residing within the CFD or by the owners of a majority of the land area within CFD which is or will be subject to the special tax, if not withdrawn prior to the close of the hearing so as to reduce the value of the protests to less than a majority, will require the proposed CFD to be eliminated from immediate consideration, and prevent its being included in a subsequent proceedings for at least one year.

If the City Council, after the public hearing, determines that a majority protest under Section 53324 of the California Government Code was not made at the hearing, the City Council may conduct an election by mailed ballot to levy a special tax within the CFD.

Questions should be directed to the undersigned, telephone (916) 774-5263.

Dated: _______________, 2022
/s/ Carmen Avalos
Carmen Avalos, City Clerk
City of Roseville

COUNCIL COMMUNICATION
CC #: 2421
File #: 0113-02
Title:

Community Development Block Grant – 2022 Annual Action Plan Substantial Amendment and Loan Agreement
Contact: Kristine Faelz 916-774-5451 [email protected] Meeting Date: 12/7/2022
Item #: 8.4.

RECOMMENDATION TO COUNCIL
Staff requests that the City Council:

1. Receive public comment on the proposed amendment to the 2022 Annual Action Plan;

2. Adopt a resolution to approve the proposed amendment to the 2022 Annual Action Plan, and authorize the City Manager to execute necessary documents and certifications on behalf of the City of Roseville for submittal to the U.S. Department of Housing & Urban Development; and

3. Adopt a resolution to approve the Community Development Block Grant loan agreement between the City of Roseville and AMI Housing, Inc., and authorize the City Manager to execute necessary documents on behalf of the City of Roseville.

BACKGROUND
As an entitlement jurisdiction, the City of Roseville receives an annual allocation of Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD) to promote affordable housing and community development programs for low-income residents. Each year the City must produce an Annual Action Plan outlining how CDBG funds will be used to address the goals of the five-year Consolidated Plan. On May 18, 2022, Council approved the Annual Action Plan for the 2022/23 program year, which included a proposed project to allocate up to $425,000 toward affordable rental housing development to benefit low-income households and individuals.

In June of 2022, the City released a Notification of Funding Availability (NOFA) in pursuit of a qualified affordable housing developer or project sponsor. The City received one proposal, in response to the NOFA, from AMI Housing to acquire a property they are currently leasing in a residential neighborhood. The property, known as Monarch House, is a 4-bedroom home located at 1122 Salmon Drive. AMI Housing’s program provides emergency crisis stabilization housing and housing navigation services for extremely low-income individuals undergoing a mental health crisis. Monarch House has been operating at the same site since 2015 and is known and accepted by the surrounding neighbors. An average of fifty (50) Placer County residents receive services at this location each year. AMI Housing currently receives operational funding through a contract with Placer County Adult System of Care and the Mental Health Services Act (MHSA).

AMI Housing's proposal to purchase this property is timely as their landlord recently gave notice of their intention to sell the property. The purchase price for the Monarch House will total $615,000 in addition to closing costs. The City is proposing an acquisition loan in the amount of $400,000 plus closing costs, with a loan total not to exceed $425,000, funded by CDBG carryover funds from prior year (2019, 2020, and 2021) grants. Placer County Adult System of Care will grant the remaining funds necessary to acquire the property as well as continue funding operational costs that cover staffing, maintenance and administration of the program.

In order to issue the loan, the City must amend the 2022 CDBG Action Plan. While AMI Housing’s proposal to acquire the Monarch House property is consistent with the intent of CDBG funding, it does not specifically fall into any of the project categories in the current plan. The proposed substantial amendment will replace “funding in support of affordable rental housing development” project, with “acquisition of transitional housing facility” to ensure compliance. In order to provide the public, the opportunity to review and comment on the proposed substantial amendment the City opened a public comment period which began October 7th and concludes December 7, 2022.

Staff is requesting approval of the proposed acquisition, approval of the draft Loan Agreement, as well as authority to finalize and sign the Promissory Note, Deed of Trust, and Regulatory Agreement in order to loan CDBG funds to AMI Housing to purchase the property. The Regulatory Agreement will establish a maximum of six (6) units for extremely low-income (30% of Area Median Income) households and restrict the occupancy, operation, ownership, and management of the project. The recommended agreement will also support the City's General Plan in meeting the affordable housing goals and Regional Housing Needs Allocation.

FISCAL IMPACT
CDBG funding is provided as a federal grant to the City. These grants are used to offset potential costs to the General Fund and to serve the low-income community. This item does not impact the City's General Fund.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. The approval of an agreement with AMI Housing for the acquisition of property meets the above criteria and is not subject to CEQA. No additional environmental review is required.

CDBG funds are subject to the National Environmental Protection Act (NEPA) as implemented by HUD at 24 CFR 58. NEPA reviews will be completed for each program and project funded prior to any expenditures for these activities.

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal C - Maintain a safe and healthy community
Respectfully Submitted,
Kristine Faelz, Housing Analyst
Melissa Anguiano, Economic Development Director
_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Resolution 22-431
Substantial Amendment toAnnual Action Plan
Reso 22-432
AMI Monarch House LoanAgreement with Exhibits
RESOLUTION NO. 22-431
APPROVING THE PROPOSED AMENDMENT TO THE 2022 ANNUAL ACTION PLAN WHEREAS, as an entitlement jurisdiction, the City of Roseville receives an annual allocation of Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD) to promote affordable housing and community development programs for low-income residents; and
WHEREAS, each year the City must produce an Annual Action Plan outlining how CDBG funds will be used to address the goals of the five-year Consolidated Plan; and WHEREAS, on May 18, 2022, Council approved the Annual Action Plan for the 2022/23 program year, which included a proposed project to allocate up to $425,000 toward affordable rental housing development to benefit low-income households and individual; and WHEREAS, in June of 2022, the City released a Notification of Funding Availability (NOFA) in pursuit of a qualified affordable housing developer or project sponsor; and WHEREAS, the City received one proposal, in response to the NOFA, from AMI Housing to acquire a property they are currently leasing in a residential neighborhood; and WHEREAS, in order to issue the loan, the City must amend the 2022 CDBG Action Plan; and
WHEREAS, the proposed substantial amendment will replace “funding in support of affordable rental housing development” project, with “acquisition of transitional housing facility” to ensure compliance; and
WHEREAS, the proposed amendment to the 2022 Annual Action Plan has been reviewed by the City Council.

NOW THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that the Amended 2022 Annual Action Plan is hereby adopted and the City Manager or his designee is authorized to execute necessary documents and certifications on behalf of the City of Roseville for submittal to the U.S. Department of Housing and Urban Development.

PASSED AND ADOPTED by the Council of the City of Roseville this day of , 20 , by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

MAYOR
ATTEST:

City Clerk
10/7/22

CITY OF ROSEVILLE
SUBSTANTIAL AMENDMENT #1 TO THE 2022-23 ANNUAL ACTION PLAN The following is a summary and draft language that amends the 2022-23 Annual Action Plan.

Background
The City of Roseville proposes a Substantial Amendment to the 2022 Annual Action Plan.

This document constitutes the City of Roseville’s proposed substantial amendment to the following document:
• 2022 Annual Action Plan, covering July 1, 2022 through June 30, 2023 Proposed Substantial Amendment to 2022 Annual Action Plan:

On May 18, 2022, Council approved the Annual Action Plan for the 2022/23 program year, which included a proposed project to allocate up to $500,000 toward affordable rental housing development to benefit low-income households and individuals. The proposed project was titled, “Funding in support of affordable rental housing development”. The intended goal of the project was to support new housing development through acquisition of a site to be used for affordable rental housing development for low-income households and individuals. The proposed project would support the development of affordable rental housing goal in the Consolidated Plan, and was estimated to serve five households.

The City is proposing to revise the “funding in support of affordable rental housing development” project to “acquisition of transitional housing facility”. This update will allow the City to acquire a facility to be used for transitional housing, and the Consolidated Plan goal related to the proposed amendment will now be “addressing homelessness”. The amendment proposes to allocate $425,000 of funding toward this project. An estimated 50 residents would benefit from any activities related to this project.

The following sections in the 2022 Annual Action Plan will be amended (revisions are noted in red).

AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
1 Addressing
Homelessness
2020 2024 Homeless Shelter and
Housing for
Homeless
Persons
$101,070
$526,070
Public service activities other
than Low/Moderate Income
Housing Benefit: 391 Persons
Assisted
Overnight/Emergency
Shelter/Transitional Housing
Beds added: 4 beds added
2 Development
of Affordable
Rental Housing
2020 2024 Affordable
Housing
Shelter and Housing
for Homeless
Persons Affordable
Rental Housing
Maintaining the
$500,000 Rental units constructed: 5
Household Housing Unit
10/7/22
Affordable Housing
Stock
AP-35 Projects – 91.220(d)
Introduction
During program year 2022, the City of Roseville will use CDBG funds to address the following priority needs identified in the 2020-2024 Consolidated Plan:
• Shelter and Housing for Homeless Persons
• Affordable Rental Housing
• Services for Seniors and Persons with Disabilities
• Services for Youth
• Food and Nutrition Programs
• Maintaining the Affordable Housing Stock
• Services for Sexual Assault and Domestic Violence Victims • Recreational facilities and infrastructure
# Project Name
1 Administration and Planning
2 AMI Housing Temporary Rent & Utility Assistance with Supportive Services
3 KidsFirst Family Mental Wellness Program
4 Placer Veterans Stand Down Event
5 Seniors First Meals on Wheels
6 St. Vincent de Paul Society BAGS Home Delivery Program 7 Stand Up Placer Roseville Victims Services Project
8 The Gathering Inn Dental Care
9 The Gathering Inn Mental Wellness
10 The Gathering Inn Office Soundproofing
11 Volunteers of America Home Start Pedestrian Gate Project 12 Johnson Pool ADA Improvements
13 Roseville Owner-Occupied Housing Rehabilitation Program 14 Funding in Support of Affordable Rental Housing Development 14 Acquisition of transitional housing facility
Table 3 – Project Information
AP-38 Project Summary
Project Summary Information
Project Name Funding in support of affordable rental housing development Goals Supported Development of Affordable Rental Housing Needs Addressed Affordable Rental Housing
10/7/22
Funding CDBG: $500,000 (available prior year carryover funds) Description The development of rental housing affordable to low-income households and individuals.

Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed activities
5 households (5 rental units constructed)
Location Description Roseville Citywide
Planned Activities Funding towards the development of affordable housing. Project will support new housing development through acquisition of a site to be used for affordable rental housing development.

Project Name Acquisition of transitional housing facility Goals Supported Addressing Homelessness
Needs Addressed Shelter and Housing for Homeless Persons Funding CDBG: $425,000 (available prior year carryover funds) Description The acquisition of a transitional housing facility to serve lowincome households and individuals.

Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed activities
An estimated 50 residents will benefit from the proposed activities.

Location Description Roseville Citywide
Planned Activities Funding to assist with the acquisition of a facility for transitional housing for low-income persons.

RESOLUTION NO. 22-432
APPROVING A LOAN AGREEMENT FOR 1122 SALMON DRIVE PROPERTY

ACQUISITION, BY AND BETWEEN THE CITY OF ROSEVILLE AND ADVOCATES FOR MENTALLY ILL HOUSING, INC., AND AUTHORIZING THE CITY MANAGER TO

EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE
WHEREAS, a Loan Agreement for 1122 Salmon Drive Property Acquisition for Community Development Block Grant (CDBG) funds for the acquisition of a transitional housing facility, by and between the City of Roseville and Advocates For Mentally Ill Housing, Inc., has been reviewed by City Council; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that said agreement is hereby approved and that the City Manager is authorized to execute it, the Regulatory Agreement and all necessary loan documents on behalf of the City of Roseville; and
PASSED AND ADOPTED by the Council of the City of Roseville this day of , 20 , by the following vote on roll call:

AYES COUNCILMEMBERS:

NOES COUNCILMEMBERS:

ABSENT COUNCILMEMBERS:

MAYOR
ATTEST:

City Clerk

PROMISSORY NOTE SECURED BY DEED OF TRUST
$____________ Date:__________________

1. FOR VALUE RECEIVED, the undersigned, Advocates for Mentally Ill Housing, Inc., a California nonprofit corporation ("Maker"), promises to pay to the order of the CITY OF ROSEVILLE, a municipal corporation ("Lender"), the principal sum of __________________________________($_________) (the "Loan"), together with interest thereon in the manner provided for below.

2. Maker and Lender have entered into that certain Loan Agreement dated ______________, 20__ (the "Loan Agreement"). Capitalized terms not defined in this Note shall have the meanings ascribed in the Loan Agreement. Pursuant to the Loan Agreement and the exhibits thereto, Lender is loaning to Maker certain funds in the amount of the Loan for acquisition of the Property. The Loan shall be due and payable on the terms contained in Section

3.2 of this Note.

3. Loan.

3.1 The Loan shall bear 3% simple interest.

3.2 This Note is forgivable, upon expiration of the term, or payable upon default of the Deed of Trust and Assignment of Rents Containing Covenants and Restrictions (the "Deed of Trust") of even date herewith and recorded against the Property; provided, however, that upon default of the Loan Agreement, the Deed of Trust or this Note the holder shall be entitled to exercise any remedies to which it may be entitled, including the imposition of the default rate of interest provided for in Section 5 herein.

3.3. The term of this Note is fifty five (55) years.

4. This Note is secured by the Deed of Trust, which creates a lien upon the Property.

5. The Deed of Trust requires that the Property be used in the manner specified by the Deed of Trust for a period of thirty (30) years from the date thereof. In the event of any default of the Deed of Trust or this Note, interest shall accrue at the rate of ten percent (10%) (the "Default Rate") from the date of default. The portion of the principal amount of this Note subject to accrual of interest shall be computed by multiplying 1 /360 times the number of unexpired months of the term of this Note as of the date of default, times the total principal amount disbursed under this Note.
2 6. Maker shall have the right to prepay the principal amount of this Note, in whole or in part, at any time, together with interest at the Default Rate, computed as if in the event of default as set forth in Section 5 above.

7. Upon any default, the holder of this Note may apply payments received on any amounts due hereunder or under the terms of any instrument now or hereafter evidencing or securing the indebtedness as said holder may determine and, if the holder of this Note so elects, notice of election being expressly waived by Maker, the principal remaining unpaid with accrued interest shall at once become due and payable.

8. The Maker waives presentment, protest and demand, notice of protest, demand and dishonor and nonpayment of this Note and agrees to pay all costs of collection when incurred, including reasonable attorneys fees, and to perform and comply with each of the covenants, conditions, provisions and agreements of any of the undersigned contained in every instrument now evidencing or securing said indebtedness. No extension of the time for the payment of this Note or any installment hereof made by agreement with any person now or hereafter liable for the payment of this Note shall operate to release, discharge, modify, change or affect the original liability under this Note, either in whole or in part, of any of the undersigned not a party to such agreement.

9. Notwithstanding anything to the contrary herein, except as expressly permitted under the Loan Agreement, this Note shall be due in full upon the sale, transfer or encumbrance of the Property encumbered by the Deed of Trust, as provided in the Deed of Trust, subject to the provisions of Section 16 of the Deed of Trust, which is incorporated herein by reference.

10. At the election of Lender, any material default by Maker of the terms of the Loan Agreement or the Deed of Trust shall be a default of this Note.

11. Nothing in this Note shall create any relationship between Maker and Lender, other than a debtor-creditor relationship. Maker and Lender shall not be partners, joint venturers, equity venturers, or any other form of partnership or venture.

12. The provisions of this Promissory Note shall inure to the benefit of and be binding on the successors and assigns of the parties.
3 MAKER:

ADVOCATES FOR MENTALLY ILL HOUSING, INC.,
a California nonprofit corporation
By:

Its:

By:

Its:

EXHIBIT B

FORM OF DEED OF TRUST
14 RECORDING REQUESTED BY AND WHEN
RECORDED, PLEASE RETURN TO:

City Clerk

CITY OF ROSEVILLE
311 Vernon Street
Roseville, CA 95678
Exempt from recording fees
Pursuant to Gov’t Code § 27383
Deed of Trust and Assignment of Rents
Containing Covenants and Restrictions
THIS DEED OF TRUST is made as of , 20 , by and between the Trustor, ADVOCATES FOR MENTALLY ILL HOUSING, INC., a California nonprofit corporation ("Borrower"), whose address is P.O. Box 5216, Auburn, CA 95604; the Trustee, ________________, whose address is _______________________________; and the Beneficiary, THE CITY OF ROSEVILLE, whose address is 311 Vernon Street, Roseville, CA 95678 ("Lender").

Borrower, in consideration of the indebtedness described below and the trust created by this Deed of Trust, irrevocably grants and conveys to Trustee, in trust with power of sale, the property ("Property") located in the City of Roseville, County of Placer, State of California and described in Exhibit "A", attached to and made a part of this Deed of Trust.

Together with all the improvements now or hereafter erected on the property, and all easements, rights, appurtenances, rents (subject, however, to the rights and authorities given to Lender to collect and apply such rents), royalties, mineral, oil and gas rights and profits, water, water rights, and water stock, and all fixtures, including but not limited to all gas and electric fixtures, engines and machinery, radiators, heaters, furnaces, heating equipment, steam and hot water boilers, stoves, ranges, elevators and motors, bathtubs, sinks, water closets, basins, pipes, faucets and other plumbing and heating equipment, cabinets, mantels, refrigerating plant and refrigerators, whether mechanical or otherwise, cooking apparatus and appurtenances, furniture, shades, awnings, screens, blinds and other furnishings, now or hereafter attached to the property, all of which, including replacements and additions thereto, shall be deemed to be and remain a part of the property covered by this Deed of Trust; and all of the foregoing, together with said property (or the leasehold estate if this Deed of Trust is on a leasehold) are herein referred to as the “Property;”
To secure to Lender (a) the repayment of the indebtedness evidenced by Borrower's note of even date herewith ("Note"), in the principal sum of ______________________________ ($____), or such lesser amount as shall equal the aggregate amount disbursed to Borrower or for Borrower's account by Lender, in accordance with the Note; and (b) the performance of the covenants and agreements of Borrower contained in this Deed of Trust, the Note and the Loan Agreement for 2 1122 Salmon Drive Property Acquisition (Community Development Block Grant) ("Loan Agreement").

Borrower represents and covenants that Borrower is lawfully seized of the estate conveyed by this Deed of Trust and has the right to grant and convey the Property, and that Borrower will warrant and defend generally the title of the Property against all claims and demands, subject to any declarations, easements or restrictions listed in a schedule of exceptions to coverage in any title insurance policy insuring Lender's interest in the Property.

Borrower and Lender covenant and agree as follows:

1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal and interest, if any, on the indebtedness evidenced by the Note. All payments received by Lender under the Note shall be applied by Lender first to interest payable on the Note, if any, and thereafter to the unpaid principal of the Note.

2. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property and leasehold payments or ground rents, if any, by Borrower making payment, when due, directly to the appropriate payee. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall pay when due any encumbrance, charge and lien, with interest in accordance with its terms, on the Property or any portion which are inferior or superior to this Deed of Trust.

3. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire or hazards under a policy approved by Lender and which provides "special form" coverage in an amount at least equal to the replacement value of the structure. In addition, Borrower shall insure against loss of all furniture, equipment and other personal property owned by Borrower related to Borrower's operation of the Property.

The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid by Borrower making payment, when due, directly to the insurance carrier, or in a manner agreed to by the Lender.

All insurance policies and policy renewals shall be written with loss payable to the Lender. Lender shall have the right to hold the policies and policy renewals, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.

Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this Deed of Trust is not hereby 3 impaired. If such restoration or repair is not economically feasible or if the security of this Deed of Trust would be impaired, the insurance proceeds shall be applied to repay the sums secured by this Deed of Trust.

Unless Lender and Borrower otherwise agree in writing, any such application of insurance proceeds to principal shall not extend or postpone the due date of any payment or change the amount of such payment. If under Section 17, the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and proceeds of such policies resulting from damage to the Property prior to the sale of acquisition shall pass to Lender to the extent of the sums secured by this Deed of Trust immediately prior to such sale or acquisition.

4. Liability Insurance. Borrower shall maintain premises liability insurance for the Property in a form and coverage approved by Lender. The insurance carrier shall be chosen by the Borrower subject to approval by the Lender; provided, that such approval shall not be unreasonably withheld. All premiums shall be paid by Borrower. Lender shall be named as an additional insured.

5. Preservation and Maintenance of Property. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment, demolition, or deterioration of the Property.

6. Protection of Lender's Security. Borrower shall appear in and defend any action or proceeding purporting to affect the security under this Deed of Trust or the rights of the Lender. If Borrower fails to perform the covenants and agreements contained in this Deed of Trust, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, foreclosure, involuntary sale, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender, at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs.

Any amounts disbursed by Lender pursuant to this Section, with interest, shall become additional indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment, and shall bear interest from the date of disbursement at the highest rate permissible under applicable law. Nothing contained in this Section shall require Lender to incur any expense or take any action.

7. Inspection. Lender may make or cause to be made reasonable entries upon and inspections of the Property, provided that Lender shall give Borrower and occupants notice prior to any such inspection.

8. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of all or any part of 4 the Property, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. In the event of a taking of all of the Property, the proceeds shall be applied to the sums secured by this Deed of Trust, subject to any claims of prior lienholders, with the excess, if any, paid to junior lienholders and Borrower, as they may determine. In the event of the partial taking of the Property, unless Borrower and Lender otherwise agree in writing, and subject to any claims of prior lienholders, there shall be applied to the sums secured by this Deed of Trust such proportion of the proceeds as is equal to that proportion which the amount of the sums secured by this Deed of Trust immediately prior to the date of taking bears to the fair market value of the Property immediately prior to the date of taking, with the balance of the proceeds paid to junior lienholders and Borrower, as they may determine.

If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date such notice is mailed, Lender is authorized to collect and apply the proceeds, at Lender's option, either to restoration or repair of the Property or to the sums secured by this Deed of Trust.

Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of any payment or change the amount of such payment.

9. Borrower Not Released. Extension of the time for payment of the sums secured by this Deed of Trust granted by Lender to Borrower or any successor in interest of Borrower shall not operate to release, in any manner, the liability of the original Borrower and Borrower's successors in interest. Lender shall not be required to commence proceedings against such successor or refuse to extend time for payment by reason of any demand made by the original Borrower or Borrower's successors in interest.

10. Forbearance by Lender Not a Waiver. Any forbearance by Lender in exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall not be a waiver or preclude the exercise of any such right or remedy. The procurement of insurance or the payment of taxes or other liens or charges by Lender shall not be a waiver of Lender's right to accelerate the maturity of the indebtedness secured by this Deed of Trust.

11. Remedies Cumulative. All remedies provided in this Deed of Trust are distinct and cumulative to any other right or remedy under this Deed of Trust, the Note, the Loan Agreement or afforded by law or equity, and may be exercised concurrently, independently or successively.

12. Successors and Assigns Bound; Joint and Several Liability; Captions. The covenants and agreements contained in this Deed of Trust shall bind, and the rights under this Deed of Trust shall inure to, the respective successors and assigns of Lender and Borrower. All covenants and agreements of Borrower shall be joint and several. The captions and headings of the paragraphs of this Deed of Trust are for convenience only and are not to be used to interpret or to define its provisions.
5 13. Notice. Except for any notice required under applicable law to be given in another manner, (a) any notice to Borrower provided for in this Deed of Trust shall be given by mailing such notice by certified mail addressed to Borrower at the address above, or at such other address as Borrower may designate by notice to Lender and (b) any notice to Lender shall be given by certified mail, return receipt requested, to Lender's address stated above or to such other address as Lender may designate by notice to Borrower.

Any notice provided for in this Deed of Trust shall be deemed to have been given to Borrower or Lender when given in the manner designated.

14. Governing Law; Severability. This Deed of Trust shall be governed by the laws of the State of California. In the event that any provision or clause of this Deed of Trust or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Deed of Trust or the Note which can be given effect without the conflicting provision, unless expressly stated otherwise, and to this end the provisions of the Deed of Trust and the Note are declared to be severable.

15. Borrower's Copy. Borrower shall be furnished a conformed copy of the Note, the Loan Agreement and this Deed of Trust at the time of execution or after recordation hereof.

16. Transfer or Refinancing of the Property; Assumption. If all or any part of the Property or an interest in the Property is sold or transferred or refinanced by Borrower without Lender's prior written consent, Lender may, at Lender's option, declare all the sums secured by this Deed of Trust to be immediately due and payable. Lender shall have waived such option to accelerate if, prior to the refinancing, sale or transfer, Lender and the person to whom the Property is to be sold or transferred reach agreement in writing that the loan may be assumed. If Lender has waived the option to accelerate provided in this Section and if Borrower's successor in interest has executed a written assumption agreement accepted in writing by Lender, Lender shall release Borrower from all obligations under this Deed of Trust, the Note and the Loan Agreement.

If Lender exercises such option to accelerate, Lender shall mail Borrower notice of acceleration. Such notice shall provide a period of not less than 30 days from the date the notice is mailed, within which Borrower may pay the sums declared due. If Borrower fails to pay such sums prior to the expiration of such period, Lender may, without further notice or demand on Borrower, invoke any remedies permitted by Section l7.

17. Acceleration; Remedies. Except as provided in Section 16, upon Borrower's breach of any covenant or agreement of Borrower in this Deed of Trust, the Note or the Loan Agreement (including the covenants to pay when due any sums secured by this Deed of Trust and restricting transfer of the Property), Lender shall mail notice to Borrower specifying: (1) the breach; (2) the action required to cure such breach; (3) a date, no less than 30 days from the date the notice is mailed to Borrower, by which the breach must be cured; and (4) that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by this Deed of Trust and sale of the 6 Property. If the breach is not cured on or before the date specified in the notice, Lender, at Lender's option, may declare all of the sums secured by this Deed of Trust to be immediately due and payable without further demand and may invoke the power of sale and any other remedies permitted by applicable law. Lender shall be entitled to collect from the Borrower, or sale proceeds, if any, all reasonable costs and expenses incurred in pursuing the remedies provided in this Section, including, but not limited to, reasonable attorney's fees.·
If Lender invokes the power of sale, Lender shall execute or cause Trustee to execute a written notice of the occurrence of an event of default and of Lender's election to cause the Property to be sold and shall cause such notice to be recorded in each county in which any portion of the Property is located. Lender or Trustee shall mail copies of such notice in the manner prescribed by applicable law to Borrower and to the other persons prescribed by applicable law. Trustee shall give public notice of sale to the persons and in the manner prescribed by applicable law. After the lapse of such time as may be required by applicable law, Trustee, without demand on Borrower, shall sell the Property at public auction to the highest bidder at the time and place and under the terms designated in the notice of sale, in one or more parcels and in such order as Trustee may determine. Trustee may postpone sale of all or any parcel of the Property by public announcement at the time and place of any previously scheduled sale. Lender or Lender's designee may purchase the Property at any sale.

Trustee shall deliver to the purchaser a Trustee's deed conveying the Property so sold without any covenant or warranty, express or implied. The recitals in the Trustee's deed shall be conclusive evidence of the truth of the statements contained in the recitals.

Trustee shall apply the proceeds of the sale in the following order: (a) to all reasonable costs and expenses of the sale, including, but not limited to, reasonable Trustee's and attorney's fees and costs of title evidence; (b) to all sums secured by this Deed of Trust and (c) the excess, if any, to the person or persons legally entitled thereto as determined by Lender. In the event of a dispute regarding the excess funds, either Lender or Trustee may file an action in interpleader to determine who shall receive the funds and may then deposit the excess funds with the court.

18. Assignment of Rents; Appointment of Receiver; Lender in Possession. As additional security, Borrower assigns to Lender the rents of the Property, provided that Borrower shall, prior to acceleration under Section 16 or Section 17 or abandonment of the Property, have the right to collect such rents as they become due.

Upon acceleration under Section 16 or Section 1 7 or abandonment of the Property, Lender, in person, by agent or by judicially appointed receiver, shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the Property, including those past due. All rents collected by Lender or the Receiver shall be applied first to payment of the costs of management of the Property and collection of rents, including, but not limited to receiver's fees, premiums on receiver's bonds and reasonable attorney's fees, and then to the sums secured by this Deed of Trust. Lender and the receiver shall be liable to account only for those rents actually received. The 7 provisions of this Section, Section 16 and Section 17 shall operate subject to the claims of prior lienholders.

19. Operational Covenants and Permitted Use Restrictions. The permitted use of the Property under this Deed of Trust shall be only for Borrower's operation of a transitional housing facility providing housing and support services for six adults transitioning from homelessness to self-sufficiency. Borrower shall cooperate with Lender in entering into and adhering to the terms of a memorandum of understanding or similar agreement with Lender, a neighborhood association or similar neighborhood or municipal entity designated by Lender, in order to facilitate continued positive relationships between Borrower and its neighbors and to support the continuing success of the program operated by Borrower at the Property. Any change in use or cessation of such transitional housing and support services or other failure of compliance with the requirements of this paragraph will constitute a material default of this Deed of Trust and shall give rise to Lender's right to invoke any and all remedies available at law or in equity, including but not limited to the remedies provided in Section 17 or Section 18 above.

20. Reconveyance. Upon payment of all sums secured by this Deed of Trust, Lender shall request Trustee to reconvey the Property and shall surrender this Deed of Trust and all notes evidencing indebtedness secured by this Deed of Trust to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legally entitled to such reconveyance. Such person or persons shall pay all costs of recordation, if any. The recitals, in the reconveyance, of any matters or facts shall be conclusive evidence of the truth of the statements contained in the recitals.

21. Substitute Trustee. Lender, at Lender's option, may from time to time remove Trustee and appoint a successor trustee to any Trustee appointed under this Deed of Trust.

Without conveyance of the Property, the successor trustee shall succeed to all the title, power and duties conferred upon the Trustee by this Deed of Trust and applicable law.

22. Request for Notice. Borrower requests that copies of the notice of default and notice of sale be sent to Borrower's address.

23. Statement of Obligation. Lender may collect a reasonable fee for furnishing the statement of obligation as provided by Section 2943 of the Civil Code of California, as it may be amended from time to time.

24. Use of Property. Borrower shall not permit or suffer the use of any of the Property for any purpose other than the use for which the same was intended at the time this Deed of Trust was executed.
8 IN WITNESS WHEREOF, Borrower has executed this Deed of Trust.

BORROWER:

ADVOCATES FOR MENTALL ILL
HOUSING, INC., a California nonprofit
corporation
BY:

Its:
and
BY:

Its:
9 10

EXHIBIT C

FORM OF REGULATORY AGREEMENT
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RECORDING REQUESTED BY, )
AND WHEN RECORDED MAIL TO: )
)
)
City of Roseville )
316 Vernon Street, Suite 150 )
Roseville, CA 95678 )
Attn: Housing Manager )
Exempt from recording fee (Govt. Code § 6103 and § 27383) Space above this line reserved for use by Recorder’s Office

REGULATORY AGREEMENT
Transitional Housing
1122 Salmon Drive, Roseville, CA
This Regulatory Agreement (“Regulatory Agreement”) is made as of ______________________________, by and between the CITY OF ROSEVILLE, a California municipal corporation (“City”), and ADVOCATES FOR MENTALLY ILL HOUSING, INC. (AMIH), a California nonprofit corporation (“Owner”).

RECITALS
A. Owner proposes to maintain one (1) Transitional Housing project (the “Project”) at a site located in Roseville, California, at 1122 Salmon Drive (APN 471-200-013-000), (as more particularly described in Exhibit A, attached hereto and incorporated herein by reference) (the “Property”), which shall be used as transitional housing for a minimum of four (4) low income residents, previously homeless or at-risk of homelessness, or such other number of residents as may be permitted by the Zoning Code in effect at the time.

B. The Project shall serve as a community resource by providing decent, safe, and sanitary transitional housing for households who would otherwise be unable to obtain such housing. The City has assisted the Owner with the purchase of the Property at which to operate the Project by allocating Community Development Block Grant (CDBG) funds in accordance with the CDBG regulations at 24 CFR 570 (CDBG regulations) and the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR 200 (Uniform Administrative Requirements). A Promissory Note and Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing has been or will be recorded to secure the City’s interest in the property; these documents and this Regulatory Agreement are collectively referred to as the “City Documents.”
C. As consideration for this funding and to further the public interests of the City in seeing the Project provided and maintained as Transitional Housing, Owner has agreed to enter into and record this Regulatory Agreement. The purpose of this Regulatory Agreement is to regulate and restrict the occupancy, rents, operation, ownership, and management of the Project for the benefit of Project occupants, the residents of the City of Roseville, and in accordance with CDBG regulations and Uniform Administrative Requirements. The covenants in this Regulatory Agreement shall run with the land and be binding on Owner and successors to the land for the full term of this Regulatory Agreement. -2-
NOW, THEREFORE, Owner and the City hereby agree as follows:

The foregoing Recitals are true and correct and incorporated into this Regulatory Agreement.

DEFINITIONS
The following terms have the meanings set forth in this section wherever used in this Regulatory Agreement or attached exhibits. Capitalized terms not defined in this Regulatory Agreement shall have the same meaning as defined in the City Documents.

1. City means the City of Roseville, California, a municipal corporation.

2. City Documents means collectively this Regulatory Agreement, Promissory Note, Deed of Trust, and any other document required for the transfer of the Property, as they may be amended, modified, or restated from time to time, along with all exhibits and attachments to these documents.

3. City Manager means the City of Roseville City Manager or his or her designee.

4. Event of Default means a breach of or default in a party’s obligations under the Regulatory Agreement, and any other instrument which is incorporated in the City Documents.

An Event of Default includes, without limitation, the following:

A. City discovers that Owner has made any misrepresentations or has intentionally withheld any fact in the making of this Grant, the knowledge of which could have affected the decision of City to make this Grant.

B. Owner defaults or breaches any of the terms of the Promissory Note, Deed of Trust or this Regulatory Agreement.

C. Owner fails to perform any covenant, term or condition in any instrument creating a lien upon the Property which is the security under the Trust Deed, or any part thereof.

D. The sale, transfer of title, conveyance or further encumbrance of the Property, whether by sale, exchange, gift, inheritance or other means, without prior written consent of City.

E. The occurrence of any of the following:
i. Owner becoming insolvent or bankrupt or being unable or admitting, in writing, Owner’s inability to pay debts as they mature or making a general assignment of or entering into any restructure payment arrangement with creditors.
ii. Proceedings for the appointment of a receiver, trustee, or liquidator of the assets of Owner or a substantial part of such assets, being authorized or instituted by or against the Owner.
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iii. Proceedings under any bankruptcy, reorganization, readjustment of debt, insolvency, dissolution, liquidation or other similar law of any jurisdiction being authorized or instituted against Owner.

5. Owner means the fee title owner of the Property, defined above as Advocates for Mentally Ill Housing (AMIH), Inc. The term “Owner” includes any person or entity acquiring fee title to the Property.

6. Project means the one (1) single-family home, acquired and operated as transitional housing, which is situated on the Property and used according to the terms of this Regulatory Agreement.

7. Property means the real property described in the attached Exhibit A, which is hereby incorporated into this Regulatory Agreement by this reference, and any buildings or improvements now or hereafter situated on such real property.

8. Qualifying Household means an individual or household meeting the federal definition of extremely low-income having a household income at or below 80% of area median household income (AMI), as adjusted for household size as published by the Department of Housing and Urban Development (HUD). Income limits are published at https://www.huduser.gov/portal/datasets/il.html. The current income limits based on the effective date must be used when qualifying a household.

9. Qualifying Program Fee means the maximum amount charged to and paid by a resident for the occupancy of the Project and benefit of services provided each month. This shall be calculated using the income limits published by HUD for the CDBG program for very low-income households (50% of area median household income, adjusted for household size). The Qualifying Program Fee shall not exceed 30% of 1/12 of the annual income limit for a very low-income household (50% of area median income, adjusted for household size). Income limits are published at https://www.huduser.gov/portal/datasets/il.html. The current income limits based on the effective date must be used when calculating the qualifying program fee.

10. Transitional Housing means housing available for a period of up to twenty-four (24) months in order to allow residents to obtain permanent housing. Extensions to the twenty-four-month timeframe must be approved by the City in writing, and in no event may any individual or household occupy the Property for longer than twenty-four (24) months.

REPRESENTATIONS

11. Representations. As an entitlement community under the federal Community Development Block Grant (CDBG) program, the City has provided Federal CDBG funding in the amount of ___________________________________ dollars ($_______) to acquire the Property. This Regulatory Agreement is a substantial part of the consideration to City for making the CDBG funding available to Owner for the purpose of operating a Transitional Housing program. The funds used by the City are federal pass through funds administered by the City and their use is subject to certain requirements. Therefore, the City has provided the funds conditioned upon Owner’s agreement, for itself and its successors and assigns, to comply with all provisions of this Regulatory Agreement and other documents. Owner has had full opportunity to make itself independently familiar with such limitations and restrictions, and Owner accepts them and agrees to comply fully with them.
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OWNER’S OBLIGATIONS

12. Compliance with City Documents. Owner’s actions with respect to the Property shall at all times be in full conformity with the requirements of the City Documents.

13. Term of Agreement. This Regulatory Agreement shall commence upon execution and shall remain in full force and effect until fifty five (55) years from the recordation date of this Agreement. The obligations in this Regulatory Agreement shall remain effective and fully binding on Owner, and its successors, assigns and heirs, and any subsequent owner of the Property, for this full term regardless of any payment, any reconveyance of a Deed of Trust, or any sale, assignment, transfer, or conveyance of the Property, unless terminated earlier by the City in a recorded document or extended by mutual consent of the parties.

PROJECT OCCUPANCY AND RENTS

14. Occupancy of Project. Owner shall limit, for the full term of this Regulatory Agreement, limit the occupancy of a minimum of four (4) beds in the Project to Qualifying Households. The qualifications of applicants shall be certified by Owner prior to initial occupancy in conformance with the Management Plan, as these rules may be amended from time to time.

The Project shall be owned, managed, and operated as a transitional residential facility comprised of complete facilities for living, sleeping, eating, cooking, and sanitation for a minimum of four (4) Qualifying Households, or such other number of Qualifying Households as may be permitted by the Zoning Code in effect at the time, including sleeping area, bathing and sanitation facilities, and cooking facilities equipped with a cooking range, refrigerator, and sink. The Project shall never be used as hotel, dormitory, fraternity house, sorority house, rooming house, hospital, nursing home, sanitarium, rest home, or trailer park or court.

Additional bedrooms beyond the existing four (4) bedrooms may not be added to the home, either within the existing home or on the existing lot, without the written permission of the City.

15. Project Program Fees. Fees charged to occupants shall be limited to the Qualifying Program Fee. Owner may charge a fee lower than the Qualifying Program Fee, as long as the Owner has adequate funding to pay the costs associated with the Project, including property taxes, utilities, and a reasonable contribution to replacement and operating reserves.

Income received by Owner may be subject to the CDBG rules on program income. CDBG regulations define program income at 24 CFR 570.500 (a). The Owner is subject to the requirements on agreements with Owners at 24 CFR 570.503 “Agreements with Owners” including those related to program income. The disposition of program income is subject to the requirements found at 24 CFR 570.504(c) "Disposition of Program Income Received by Owners."
Program income is that gross income generated by the use of Project property less costs [expenses] incidental to generation of the income. The program income generated by the Project will be determined by deducting operating expenses of Project property and the provision of services to occupants from gross income generated by its use. Payments of principal or interest cannot be deducted from gross income for the purpose of determining program income.
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Program income must be returned to City annually within 30 days of the end of the fiscal year (ending June 30). Any program income on hand when this Agreement expires, or received after the expiration of this Agreement, shall be returned to the City.

16. Lead-Based Paint and Asbestos. Owner shall comply with the requirements of 24 CFR Part 35 “Lead-based Paint Poisoning Prevention in Certain Residential Structures” and 40 CFR Part 745 “Leadbased Paint Poisoning Prevention in Certain Residential Structures”. Owner, and contractors and subcontractors hired by Owner shall not use lead-based paint, asbestos, or asbestos-containing materials in the construction, design, or maintenance of the Property. Owner, and contractors and subcontractors hired by Owner shall comply with the general lead-based paint requirements of 24 CFR 35 and the requirements related to rehabilitation (Subpart J) including lead hazard evaluation, notices to residents, and ongoing lead-based paint maintenance activities. Lead-based paint hazard evaluation and reduction shall only be performed using HUD-approved methods (Subpart R). Owner, and contractors and subcontractors hired by Owner shall comply with the standards for renovation, requirements for disclosure, and training and accreditation requirements at 40 CFR Part 745. All workers and supervisors must be appropriately certified in the lead-paint hazards and safe work practices at 24 CFR 745 to perform the work they are doing. Owner, and contractors and subcontractors hired by Owner shall comply with the standards for demolition and renovation of asbestos-containing materials at 40 CFR 61.145 including appropriate survey, notifications, containment, and worker protection. Owner shall cause this provision to be inserted in all contracts and subcontracts for all work performed on the Project.

17. Nondiscrimination. Owner shall not discriminate or segregate in the use, enjoyment, occupancy, conveyance, lease, sublease, or rental of Project on the basis of race, color, ancestry, national origin, religion, sex, sexual preference, age, marital status, family status, source of income, physical or mental disability, Acquired Immune Deficiency Syndrome (AIDS) or AIDS-related conditions, or any other arbitrary basis. Owner shall include a statement in all advertisements, notices, and signs for the availability of the Project for occupancy and participation in the programs offered to the effect that Owner is an Equal Housing Opportunity Provider, as that term is defined by State and Federal law.

Further, Owner shall not cause and shall not permit discrimination on 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, or rental or in the use or occupancy of the Property. Owner covenants by and for himself, his heirs, executors, administrators, and assigns, and all persons claiming under or through them that there shall be no discrimination against or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the Property.

This covenant against discrimination shall continue in perpetuity.

18. Personal Responsibility and Work Opportunity Act. Owner shall assure compliance with the obligations imposed by the federal Personal Responsibility and Work Opportunity Act (Public Law 104- 193, commonly known as the Welfare Reform Act), which restrict the City funding of federal benefits to persons who are not citizens or qualified aliens as defined in such act.

19. Operation and Management of Project. Owner and each of Owner’s officers, agents, and/or employees shall diligently operate and manage the Project in substantial conformance with the covenants contained in this Agreement, which shall run with the land and bind all successors-in-interest to the Property, and with the terms of the Management Plan as defined below. -6-
A. Management Plan. City and Owner agree that Owner shall manage the Property as follows:

Owner will have weekly house meetings conducted by Placer County Adult System of Care (ASOC) and Advocates for Mentally Ill Housing, Inc. (AMIH) staff members with all of the Qualifying Household residents. During the meeting, the owner will address household chores and grocery shopping, maintenance issues and any interpersonal issues that may be occurring between the residents, as well as any other household business or resident needs. The residents will also have the opportunity to meet with AMIH staff after the meeting in order to coordinate transportation and request assistance with long-term housing plans when needed. The Owner will also have a peer counselor who transports clients to the grocery store once per week and checks in at the house over the weekends, when needed. When an emergency situation arises, residents will contact the Placer County Housing Coordinator during regular business hours and AMIH staff after hours or on the weekends, when necessary.

B. Management Responsibilities. The Owner shall perform and provide the following:
i. A major maintenance schedule, prepared by Owner, which specifies maintenance work to be performed on a periodic basis over the estimated lifetime of the housing unit that comprises the Project. The annual schedule must be submitted to the City by March 31 of each calendar year, or a multi-year schedule may be submitted to meet this requirement. ii. Evidence of the establishment of a replacement reserve account, identifying the manner in which the maintenance schedule described in item B.i. above, and projected replacement activities will be funded from monthly project income and other sources. The schedule for deposits and withdrawals from the replacement reserve account shall be submitted to the City by March 31 of each calendar year, or in multi-year increments that complies with the March 31st deadline for the current year.
iii. Annual inspections of the Project to ensure continued compliance with state and local housing codes. Results of the inspections must be documented in a report, and copies may be requested by the City. The City may also independently schedule during a calendar year, one or more property inspections upon 5 business days’ advance written notice by City to Owner. iv. Annual reporting to the City regarding compliance with the deferred maintenance schedule and the results, findings, and any corrective measures taken or to be undertaken arising from the annual inspections of units.
v. Audited annual financial statements prepared by a certified public accountant, approved in advance, in writing, by City, which reflect the status of the reserve fund for maintenance and replacement activities. Copies of audited annual financial statements must be provided to the City within ninety (90) calendar days of the fiscal year-end date. vi. A plan for certifying the eligibility of each person or household, including annual verification of tenant income and measures to take in the event a tenant exceeds the maximum income.
vii. A tenant selection process that includes, but is not limited to, the following:
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a. Review of the following criteria:
i. Potential for securing permanent housing within a timeframe of six to twelve months;
ii. History of drug or alcohol abuse;
iii. History of criminal or drug related offenses, including, but not limited to: assault, battery, abuse, destructive or violent behavior.
b. Prospective tenants must be required to fill out an application form, verify income/employment, attend a private interview with Owner or a selected property management firm, and agree to abide by property management rules for Property.
c. Selected tenants must be given a set of “rules and regulations” for the Property.
d. Leases with tenants must provide that non-compliance with building rules shall be an event of default on the lease and grounds for eviction.
viii. Provide to the City and keep on file the following information:
a. The duties of the property manager regarding operation of the Property.
b. A sample lease form.
c. Plan for handling terminations with cause, including providing tenant with due process (notice and opportunity to be heard) by a court prior to eviction.

Owner shall provide and maintain the Project in a safe and sanitary manner and shall comply with all Federal, State, and local housing codes, licensing requirements, and other requirements regarding the condition of the Property and the operation of rental housing in the City of Roseville, including, but not limited to, laws related to terminating a lease, due process, and evictions.

Owner shall be specifically responsible, subject to its obligations herein, for all management functions with respect to the Property, including, without limitation, the selection of tenants, certification and recertification of household size and income, evictions, collection of rents and deposits, maintenance, landscaping, routine and extraordinary repairs, replacement of capital items, and security. Except as otherwise provided herein, the City shall have no responsibility over management of the Property.

20. Maintenance and Security. Owner shall, at its own expense, maintain the Property in good condition, in good repair, and in a safe, sanitary, and habitable, living condition for the benefit of the Project’s occupants. Owner shall not commit or permit any waste on or to the Property, and shall prevent and/or rectify any physical deterioration of the Property. Owner shall maintain the Property in -8-
conformance with all applicable state, federal, and local laws, ordinances, codes, and regulations and the Management Plan; however, Owner’s maintenance obligations shall not be limited only to the standards contained in these laws or the Management Plan.

In the event the Owner fails to maintain the Property in accordance with these standards and after thirty (30) calendar days prior written notice to Owner, the City or its agent may, but shall be under no obligation to, enter upon the Property, make such repairs or replacements as are deemed necessary in City’s reasonable discretion, and provide for payment thereof. Any amount advanced by City to make such repairs, together with interest thereon at the legal rate (unless payment of such an interest rate would be contrary to applicable law, in which case interest shall accrue at the rate then allowed by applicable law), shall become an additional obligation of Owner to City and shall be secured by the Deed of Trust.

Nothing contained in this Section shall be interpreted to place any restriction or limitation on the City’s right to take such actions as it deems necessary or proper to protect the health and safety of the public in the proper exercise of the City’s authority under federal, state, and local laws.

21. Unit Vacancies. Owner shall use its best efforts to fill vacancies in the Project as quickly as possible.

22. Inspection and Records. Owner shall maintain records which clearly document Owner’s performance of its obligations to operate the Property under the terms of the City Documents. Owner shall submit any records to the City within ten (10) business days of City’s request. Owner shall permit City to enter and inspect the Property for compliance with obligations under the City Documents upon five (5) days advance written notice of such visit by City to Owner or Owner’s property manager and to tenants of any inspected part/bedroom of Project unit, subject to the provisions of the lease regarding inspection and entry rights, a copy of the notice to tenant by the Owner must be provided to City upon request.

Further, at the written request of the City, Owner shall, within ten (10) business days following receipt of such request, furnish reports and shall give specific answers to questions upon which information is desired from time to time relative to the income, assets, liabilities, contracts, operations, and condition of the property and the status of the Deed of Trust.

23. Audit and Inspection. The Property and all related equipment, buildings, plans, offices, books, contracts, records, documents and other related papers shall at all times be maintained in reasonable condition for audit and shall be subject to examination by the City or its agents. The books and accounts of the operations of the Project and of the Property shall be kept in accordance with generally accepted accounting principles.

24. Annual Report. Owner shall submit an annual report to City, which shall include, at a minimum, the initial and current rental rates and the income and household size of the occupants at the time such occupants initially take occupancy and annually thereafter. The income information required under this report shall be supplied by the tenant in a certified statement in compliance with all applicable rules and regulations of the U.S. Department of Housing and Urban Development. City may require additional information to be included in the annual report.

25. Fees, Taxes, and Other Levies. Owner shall be responsible for payment of all fees, assessments, taxes, charges, and levies imposed by any public authority, utility company, or homeowner or condominium association with respect to the Property, and shall pay such charges prior to delinquency.

However, Owner shall not be required to pay any such charge as long as (a) the legality thereof is being -9-
contested in good faith and by appropriate proceedings, and (b) Owner maintains reserves adequate to pay any contested liabilities.

26. Insurance Coverage. Owner shall cause to have in full force and effect during the term of this Regulatory Agreement insurance coverage as follows:

COVERAGE LIMITS OF LIABILITY
Workers’ Compensation Statutory
Commercial General Liability $1,000,000 each occurrence $2,000,000 aggregate
Personal Injury:
$1,000,000 each occurrence
$2,000,000 aggregate
Automobile Liability $1,000,000 combined single limit
a. Form. Owner shall submit a certificate evidencing such coverage for the period covered by this Agreement in a form satisfactory to Risk Management and the City Attorney, prior to undertaking any work hereunder. Any insurance written on a claims made basis is subject to the approval of Risk Management and the City Attorney.
b. Additional Insureds. Owner shall also provide a separate endorsement form or section of the policy showing City, its officers, agents, employees and volunteers as additional insureds for each type of coverage, except for Workers’ Compensation and Professional Liability. Such insurance shall specifically cover the contractual liability of Owner. The additional insured coverage under the Owner’s policy shall be primary and noncontributory, as evidenced by a separate endorsement or section of the policy, and shall not seek contribution from City’s insurance or self-insurance. In addition, the additional insured coverage shall be at least as broad as the Insurance Services Office (“ISO”) CG 20 01 Endorsement. Any available insurance proceeds in excess of the specified minimum insurance coverage requirements and limits shall be available to the additional insureds. Furthermore, the requirements for coverage and limits shall be: (1) the minimum coverage and limits specified in this Agreement; or (2) the full coverage and maximum limits of any insurance proceeds available to the named insureds, whichever is greater.
c. Cancellation/Modification. Owner shall provide ten (10) days written notice to City prior to cancellation or modification of any insurance required by this Agreement. d. Umbrella/Excess Insurance. The limits of insurance required in this Agreement may be satisfied by a combination of primary and excess insurance. Any excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of City (if agreed to in a written contract) before City’s own insurance shall be called upon to protect it as a named insured.
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e. Subcontractors. Owner agrees to include in its contracts with all subcontractors the same requirements and provisions of this Agreement, including the indemnity and insurance requirements, to the extent they apply to the scope of the subcontractor’s work.

Furthermore, Owner shall require its subcontractors to agree to be bound to Owner and City in the same manner and to the same extent as Owner is bound to City under this Agreement. Additionally, Owner shall obligate its subcontractors to comply with these same provisions with respect to any tertiary subcontractor, regardless of tier. A copy of City’s indemnity and insurance provisions will be furnished to the subcontractor or tertiary subcontractor upon request. f. Self-Insured Retentions. All self-insured retentions (“SIR”) must be disclosed to Risk Management for approval and shall not reduce the limits of liability.

Policies containing any SIR provision shall provide or be endorsed to provide that the SIR may be satisfied by either the named insured or City. City reserves the right to obtain a full certified copy of any insurance policy and endorsements. The failure to exercise this right shall not constitute a waiver of such right.
g. Waiver of Subrogation. Owner hereby agrees to waive subrogation which any insurer of OWNER may acquire from Owner by virtue of the payment of any loss under a Workers Compensation, Commercial General Liability or Automobile Liability policy. All Workers Compensation, Commercial General Liability and Automobile Liability policies shall be endorsed with a waiver of subrogation in favor of CITY, its officers, agents, employees and volunteers for all worked performed by Owner, its employees, agents and subcontractors.
h. Liability/Remedies. Insurance coverage in the minimum amounts set forth herein shall not be construed to relieve Owner of liability in excess of such coverage, nor shall it preclude City from taking such other actions as are available to it under any other provisions of this Agreement or law.

27. Property Damage or Destruction. If any part of the Property is damaged or destroyed, Owner shall, at its own cost and expense, repair or restore the Property consistent with the original condition of the Project. Such work shall be commenced within thirty (30) calendar days, or up to one hundred eighty (180) calendar days with written approval of City, after the damage or loss occurs and shall be completed within three hundred sixty (360) calendar days thereafter. All insurance proceeds collected for such damage or destruction shall be applied to the cost of such repairs or restoration and, if insurance proceeds are insufficient for such purpose, Owner shall make up the deficiency.

28. Property Improvements. Owner shall not cause and shall not permit expansion, reconstruction, or demolition of any part of improvements on the Property, except as provided by the City Documents or as otherwise approved in writing by the City.

GENERAL PROVISIONS

29. Transfer and Encumbrance of Property. Owner shall not transfer the Property, in whole or in part, without the prior written consent of the City and the approval of the Roseville City Council in the form of a resolution. Requests to transfer the Property shall be considered for approval only if the following conditions are satisfied: (A) the receipt by the City of evidence acceptable to the City that (1) the Owner shall not be in default hereunder or the transferee undertakes to cure any defaults of the Owner to the reasonable satisfaction of the City; (2) the continued operation of the Project shall comply with the -11-
provisions of the City Documents; (3) either (a) the transferee or its property manager has at least three (3) years’ experience in the ownership, operation, and management of similar housing projects, and at least five (5) years’ experience in the ownership, operation and management of transitional housing projects containing below-market-rate units, without any record of material violations of discrimination restrictions or other state or federal laws or regulations or local government requirements applicable to such projects, or (b) the transferee agrees to retain a property management firm with the experience and record described in subclause (a) above, or (c) the transferring Owner or its management company will continue to manage the Project, or another management company reasonably acceptable to the City will manage, for at least one (1) year following such transfer and, if applicable, during such period the transferring Owner or its management company will provide training to the transferee and its manager in the responsibilities relating to the Project; and (4) the person or entity that is to acquire the Project does not have relevant pending litigation against it, and does not have a history of significant and material building code violations or complaints concerning the maintenance, upkeep, operation, and Regulatory Agreement compliance of any of its projects as identified by any local, state or federal regulatory agencies; (B) the execution by the transferee of any document reasonably requested by the City to evidence the assumption of the Owner’s obligations under this Regulatory Agreement.

Owner shall not transfer or encumber any of the Property or permit the conveyance, transfer, or encumbrance of the Property unless such assignee, transferee or encumbrancer has agreed, in writing and in a form suitable for recordation, to be bound by the terms of this Regulatory Agreement.

30. Revival of Covenants after Foreclosure. The affordability restrictions shall be revived after foreclosure, or deed in lieu of foreclosure according to the original terms if, during the original term of this Regulatory Agreement, if the Owner, who was owner of record before the termination event, or a party related to the Owner obtains an ownership interest in the Property or Project, as the case may be. For purposes of these provisions, a related party is anyone with whom the Owner has or had family or business ties; provided that such interest would not be considered a “remote interest” in the usual and customary use of the term.

31. Default and Remedies. In the event of any breach or violation of any agreement, obligation, or warranty under the City Documents, City shall give written notice to Owner by specifying:
(a) the nature of the breach or violation, (b) the action required to cure the breach or violation, if an action to cure is possible, and (c) a date, which shall not be less than ninety (90) calendar days from the mailing of the notice, by which such action to cure must be taken, if an action to cure is possible. If Owner fails to cure the breach or violation within the timeframe specified in the notice, or if a cure is not possible, City may proceed with any of the following remedies:

A. Bring an action for equitable relief seeking the specific performance by Owner of the terms and conditions of the City Documents, and/or enjoining, abating, or preventing any violation of said terms and conditions, and/or seeking declaratory relief; B. Enter upon, take possession of, and manage the Property, either in person, by agent, or by a receiver appointed by a court, and collect any rents, income, deposits, or reserves and apply them to operate the Property, and continue in possession until such time as City determines that Owner is in a position to operate the Property in compliance with this Regulatory Agreement; C. After notice provided for herein, make such repairs or replacements to the Property as are necessary and provide for payment thereof; or -12-
D. For violations of Owner’s obligations with respect to occupancy restrictions, Project maintenance, and unit vacancies, there shall be imposed, as liquidated damages, a charge upon Owner in an amount of ONE HUNDRED DOLLARS ($100) per day for each component of the Project that is not operated in compliance with this Regulatory Agreement, commencing after the expiration of any applicable notice and cure period. The parties to this Regulatory Agreement expressly agree that this charge of ONE HUNDRED DOLLARS ($100) per day is reasonable under the circumstances existing at the time this Regulatory Agreement was entered into and represents a reasonable attempt by the parties to estimate the damaged to be suffered by the City in the event of Owner’s breach; these damages include, but are not limited to, the City’s loss of use of funds that were granted to Owner pursuant to the City Documents, including this Regulatory Agreement, and that could have been used to support other projects but for City’s commitment to fund Owner’s Project pursuant to the City Documents.

E. Foreclose by Power of Sale to recover the Federal CDBG funding in the amount of one hundred thirty four thousand eight hundred nine dollars ($134,809) used to acquire the Property, in the event Owner fails to use the Property to further the national objectives set out in 24 CFR Part 570.208.

F. For violations of Owner’s obligations with respect to Project program fees, which shall be imposed as liquidated damages, a charge upon Owner in an amount equal to three (3) times the actual amount Owner has collected from any Qualifying Household in excess of the Qualifying Program Fee; or
G. Pursue any other remedy allowed at law or in equity.

The parties agree that the sums and formulas designated herein as liquidated damages represent a reasonable approximation of the damages City is likely to suffer from violations of the respective terms.

Owner agrees to pay in full any accrued liquidated damages to City within ten (10) business days of a written demand by City for such payment.

32. Non-Liability of Officials, Employees, and Agents. No member, official, director, employee, or agent of City shall be personally liable to Owner or third party beneficiaries for any obligation created under the terms of the City Documents.

33. Indemnity. Notwithstanding the insurance coverage required herein, Owner, its successors, assigns and heirs shall defend, indemnify and hold City, its members, officials, directors, employees, and agents, harmless against any losses, damages, liabilities, claims, demands, judgments, actions, court costs, and legal or other expenses (including attorney’s fees) which City may incur as a result of (a) Owner’s failure to reasonably perform any material obligations as required by the City Documents; (b) a failure of any of Owner’s representations or warranties under the City Documents to be true and complete in any material respect; (c) any material breach, act or omission by Owner, management agent, Owner’s contractors, subcontractors, or suppliers with respect to the Project or the Property, and/or (d) any claim related to the Project or Property, except if the loss is caused by the sole negligence or willful misconduct of the City. Owner shall pay immediately upon City’s demand any amounts owing under this indemnity. The duty of the Owner to indemnify includes the duty to defend City in any court action, administrative action, or other proceeding brought by any third party arising from the Project or the Property. Owner’s duty to indemnify City shall survive the term of this Regulatory Agreement.

34. Governing Law. This Regulatory Agreement shall be interpreted under and governed by the laws of the State of California, except for those provisions preempted by federal law. However, the -13-
laws of the State of California shall not be applied to the extent that they would require or allow the court to use the laws of another state or jurisdiction. Owner agrees that all actions or proceedings arising in connection with this Regulatory Agreement shall be tried and litigated only in the Superior Court in and for the County of Placer.

35. Attorneys’ Fees and Costs. In the event that a legal or administrative action is brought to interpret or enforce the terms of the City Documents, the prevailing party shall be entitled to recover all reasonable attorneys’ fees and costs incurred in such action.

36. Time. Time is of the essence in this Regulatory Agreement.

37. Consents and Approvals. Any consent or approval required under the Regulatory Agreement shall not be unreasonably withheld.

38. Changes without Consent of Tenants, Lessees, or Others. Only City and its successors and assigns, and Owner shall have the right to consent and agree to changes in, or to eliminate in whole or in part, any of the covenants or restrictions contained in this Regulatory Agreement without the consent of any easement holder, licensee, other mortgagee, trustee, beneficiary under a deed of trust or any other person or entity having any interest less than a fee in the Property.

39. Notices, Demands, and Communications. Formal notices, demands, and communications between Owner and City shall be given by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, to the principal offices of Owner and City as follows, or if any such office is relocated, to the new address specified by the relocated party:

CITY: ATTN: Housing Manager
City of Roseville
316 Vernon Street, Suite 150
Roseville, California 95678
WITH A COPY TO: ATTN: City Attorney’s Office
City of Roseville
311 Vernon Street
Roseville, California 95678
OWNER: ATTN: Jennifer Price, CEO
Advocates for Mentally Ill Housing, Inc.

PO Box 5216
Auburn, CA 95604
If the recipient refuses or rejects delivery, notice is deemed complete as of the date on which the Notice is so refused or rejected, as conclusively established by the records of the United States Postal Service or such express courier service.

40. Binding upon Successors. All provisions of this Regulatory Agreement shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors-in-interest, transferees, and assigns of Owner and City, and shall run with the land for the full term of this Regulatory Agreement, regardless of any reconveyance of the Deed of Trust, or any conveyance or transfer of the Property. Any successor-in-interest to Owner and any purchaser or transferee of the Property shall be subject to all of the -14-
duties and obligations imposed on Owner under this Regulatory Agreement for the full term of this Regulatory Agreement. The term “Owner” as used in this Regulatory Agreement shall include all such assigns, successors-in-interest, and transferees.

41. Relationship of Parties. The relationship of Owner and City for this Project during the term of this Regulatory Agreement shall not be construed as a joint venture, equity venture, or partnership. City neither undertakes nor assumes any responsibility or duty to Owner or to any third party with respect to the operation of the Property or the actions of Owner. Except as City may specify in writing, Owner shall have no authority to act as an agent of City or to bind City to any obligation.

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

43. Other Agreements. Owner represents that it has not entered into any agreements that would restrict or compromise its ability to comply with the terms of this Regulatory Agreement or City Documents. Owner shall not enter into any agreements that are inconsistent with the terms of this Regulatory Agreement without a written waiver by City, which shall not be unreasonably withheld.

44. Amendments and Modifications. Any amendments or modifications to this Regulatory Agreement must be in writing, and shall be effective only if executed by both Owner and City.

45. Severability. Every provision of this Regulatory Agreement is intended to be severable. 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.

SPECIAL PROVISIONS

46. Agreement and Acknowledgement of Agreement. City and Owner acknowledge and agree that this Agreement has been negotiated at arm’s length, that each party has been represented by independent counsel and/or has had an opportunity to consult with and be represented by independent counsel, that this Agreement is deemed to be drafted by both parties, that no one party shall be construed as the drafter of this Agreement, and that any rule of construction that ambiguities are to be construed against the drafter shall not apply in the interpretation or construction of this Agreement.

47. Authority. The person(s) signing this Regulatory Agreement hereby represents and warrants that he/she is fully authorized to sign this Regulatory Agreement on behalf of their respective party and to legally bind such party to the performance of its obligations hereunder. [Remainder of Page Intentionally Left Blank]
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IN WITNESS WHEREOF, the City of Roseville, a municipal corporation, has authorized the execution of this Agreement in duplicate by its City Manager and attested to by its City Clerk under the authority of Resolution No. ______, adopted by the Council of the City of Roseville on the ___ day of ____________, 20__, and Owner has caused this Agreement to be executed.

CITY:

CITY OF ROSEVILLE,
a California municipal corporation
By: ______________________
Dominick Casey
City Manager
Approved as to form:

By: ______________________
Michelle Sheidenberger
City Attorney
Attest:

By: ________________________
Carmen Avalos
City Clerk
Approved as to substance:

By: ________________________
Melissa Anguiano
Economic Development Director
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ALL SIGNATURES MUST BE NOTARIZED
OWNER:

ADVOCATES FOR MENTALLY ILL HOUSING, INC., a
California nonprofit corporation
By:______________________
Suzi deFosset, President
By: ______________________
Tom Drake, Secretary
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A

Roseville City CouncilDecember 7, 2022

Roseville City Council
December 7, 2022