KB Home Coastal Inc, Inland Valley Dr, Wildomar, CA Phone FAX

Transcription

1 April 1,2012 Cindy Lanz U.S. Bank National Association 633 West Fifth Street, 24 th Floor Los Angeles, CA Cindy: The attached document is the April 1, 2012 of KB Home in connection with Community Facilities District No of the Eastern Municipal Water District. Contained within this document is the current information required to comply with the Developer Continuing Disclosure Agreement dated as of November 1, 2004, executed by and between Coastal Inc. and U.S. Bank National Association as Dissemination Agent. Thank you and feel free to contact me with any questions. Sincerely, K;B Home Coastal Inc. Scott Hansen Project Manager Coastal Inc, Inland Valley Dr, Wildomar, CA Phone FAX

2 KB HOME SOUTHERN CALIFORNIA SEMI-ANNUAL CONTINUING DISCLOSURE REPORT COMMUNITY FACILITIES DISTRICT NO OF THE EASTERN MUNICIPAL WATER DISTRICT (CROWN VALLEY VILLAGE) This is hereby submitted under Section 4 of the Developer Continuing Disclosure Agreement (the Disclosure Agreement ) dated as of November 1, 2004, executed by the undersigned (the Property Owner ) in connection with the issuance of the above-captioned bonds by Community Facilities District No of the Eastern Municipal Water District. Capitalized terms used in this Semi-Annual Report but not otherwise defined have the meanings given to them in the Disclosure Agreement. This Semi-Annual Report is organized in the following manner. The bold typeset section represents relevant sections of the DEVELOPER CONTINUING DISCLOSURE AGREEMENT of the Official Statement ( OS ) which defines the scope of the reporting requirement. The regular typeset section represents disclosure information included in the Official Statement. Finally, the italicized typeset section represents the current project disclosure information as of March 1, N/C indicates that as of March 1, 2012, there has been no change in the information as originally published in the Official Statement, or in a previous filing of the Continuing Disclosure Report. I. THE DEVELOPMENT PLAN: On September 30, 2010, acquired 38 lots from WSI Land Holdings, LLC and 102 lots from Warm Spring Investments, Ltd. within Tract No Tract No contains approximately 73 gross acres and is being developed into a 173 single family detached development known as Crown Valley Village. 33 of those lots are within lot 141 of Tract No (formally a school site) which has been processed as Tentative Map also acquired this lot from Warm Springs Investments, LTD which is currently in mass graded condition. The Crown Valley Village Development is located at the southwest corner of Auld Rd. and Pourroy Road in the French Valley area of Riverside County. - As of March 1, 2012 the 140 lots within Tract No have been reprocessed and the sewer, water and storm drain improvements have been installed in 100% of the project. The streets have been paved in about 100% of the project and the perimeter block walls are 100% completed. Model Home construction was completed on April 30, As of March 1, 2012 the 33 lots within Tract No have been graded and the sewer and water are 100% completed. The storm drain improvements have been installed in 90% of the project. The streets will be paved complete by 5/1/12 and the perimeter walls landscaping and park site are yet to be completed. Based on current development plans, the residential units will have 8 different floor plans on lots of a minimum of 7,200 square feet with the following estimated square footages and base sales prices: (See Tables on the following page) 1

3 s Anticipated Product Mix (As of March 1, 2012) PLAN Number of Units Size Square Feet Estimated Base Sales Price ,158 $ 257, ,773 $ 268, ,991 $ 277, ,187 $ 289, ,597 $ 300, ,595 $ 303, ,905 $ 324, ,380 $ 350,490 TOTAL 173 As of March 1, 2012, all perimeter streets are paved and all 140 lots within Tract No are in Blue Top condition (see above paragraph for development update). TTM No is in mass graded condition. The final tract map for Tract No recorded on April 14, 2006 and TTM No has yet to be recorded. It is anticipated to be recorded in May, II. FINANCING PLAN: According to the OS, Warm Springs had expended approximately $3.344 million for the acquisition of its property within the Community Facilities District (approximately $2.459 million) and the development thereof (approximately $886,000). - As of March 1, 2012, the Developer had expended approximately $7,870,000 in acquiring its land within the Community Facilities District and approximately $15,072,500 in land improvements, home construction costs and other development, marketing and sales costs. According to the OS, the Developer expects to finance these remaining costs through home sales revenue, and if necessary, cash on hand or internal funding. The Developer believes that it will have sufficient funds available to complete its proposed development within the Tracts. - As of March 1, 2012, there been no changes in the above paragraph regarding the financing plan of. 2

4 s Projected Cash Flow (As of March 1, 2012) Through 3/1/2012 Projected 3/1/2012 through Buildout Total (As of 3/31/2012) Loan Proceeds Net Sales Revenues $13,007,400 $40,492,600 $13,007,400 CFD Refund ($820,231) ($3,977,516) ($820,231) Equity Contributions $18,932,828 $25,550,665 $18,932,828 Total Sources: $31,119,997 $62,065,749 $31,119,997 Development Costs: School Facility Improvements Land Cost $8,077,626 $594,052 $8,077,626 Land Improvements $5,568,233 $10,085,122 $5,568,233 Interest on Loan $590,500 $851,465 $590,500 Total House Construction $3,781,469 $12,174,485 $3,781,469 Total Project Financing Total Other Capitalized Costs Total Sales and Marketing Expenses $915,000 $1,845,541 $915,000 Other Expenses (including special taxes) Total Development Costs $18,932,828 $25,550,665 $18,932,828 Loan Repay Return of Equity/Profit Cash Balance Accumulated Cash Source: III. BUILDING PERMITS STATUS (As of March 1, 2012) Building Permits Issued Homes Constructed Homes in which escrow has closed to individual homebuyers Homes currently under sales contracts (i.e. sales agreement has been entered, but escrow has not closed)

5 IV. SALES STATUS - As of March 1, 2012, the Developer has not sold any portions of the property (other than the intention to sell to individual homebuyers). V. TAX PAYMENTS: - As of March 1, 2012, the Developer has paid all taxes, assessments and Special Taxes when due, in regards to the Property. VI. OWNERSHIP STRUCTURE: - As of March 1, 2012, there has been no change in the ownership structure of the Developer, or a change in the financial condition of the developer, which would materially interfere with the Developer s ability to complete the Development Plan. VII. LAND USE ENTITLEMENTS: -As of March 1, 2012, there have been no amendments to land use entitlements for any portion of the Property being developed in the CFD. VIII. PRECONDITIONS: - As of March 1, 2012, there have not been any preconditions to the continuation of the Development imposed by a governmental entity after the date of issuance of the Bonds which has not been previously disclosed and which could have a material adverse affect on the Financing Plan or Development Plan of the Developer, or a material adverse affect on the Developer s ability to pay the Special Taxes when due. IX. CHALLENGES TO DEVELOPMENT: - As of March 1, 2012, there have been no previously undisclosed legislative, administrative or judicial challenges to the development of the Project, that could have a material affect on the Financing Plan or Development Plan, or on the Developer s ability to pay the Special Taxes when due. 4

6 SECTION 5 - LISTED EVENTS: (i) Any conveyance of the Developer of Property within the Development to an entity that is not its Affiliate, the result of which conveyance is to cause the transferee to become a Major Developer? (ii) Any failure of the Developer, or any of its Affiliates, to pay prior to delinquency general property taxes or assessments with respect to the Property? (iii) Any denial or termination of credit, any denial or termination of, or default under, any line of credit or loan or any other loss of a source of funds that could have a material adverse affect on the Developer s most recently disclosed Financing Plan or Development Plan or on the ability of the Developer, or any of its Affiliates, to pay Special Taxes prior to delinquency. (iv) The occurrence of an Event of Bankruptcy with respect to the Developer, or any of its Affiliates, that could have a material adverse affect on either such Developer s most recently disclosed Financing Plan or Development Plan or on the ability of such Developer, or any of its respective Affiliates, to pay Special Taxes prior to delinquency. (v) Any significant amendments to land use entitlements for such Major Developer s Property, if material to such Major Developer s most recently disclosed Development Plan. (vi) The filing of a lawsuit against the Developer which, will adversely affect the completion of the Development, or litigation which if decided against the Developer would materially adversely affect the financial condition of the Developer. hereof (vii) The assumption of any obligations by a Major Developer pursuant to Section 6 (viii) A change in a Major Developer s fiscal year. 5

7 CERTIFICATION The undersigned Property Owner hereby certifies that this Semi-Annual Report constitutes the Semi Annual Report required to be furnished by the Property Owner under the Disclosure Agreement. ANY OTHER STATEMENTS REGARDING THE PROPERTY OWNER, THE DEVELOPMENT OF THE PROPERTY, THE PROPERTY OWNER'S FINANCING PLAN OR FINANCIAL CONDITION, OR THE BONDS, OTHER THAN THE STATEMENTS MADE BY THE PROPERTY OWNER IN AN OFFICIAL RELEASE, OR FILED WITH THE MUNICIPAL SECURITIES RULEMAKING BOARD OR A NATIONALLY RECOGNIZED MUNICIPAL SECURITIES INFORMATION REPOSITORY, ARE NOT AUTHORIZED BY THE PROPERTY OWNER. THE PROPERTY OWNER IS NOT RESPONSIBLE FOR THE ACCURACY, COMPLETENESS OR FAIRNESS OF ANY SUCH UNAUTHORIZED STATEMENTS. THE PROPERTY OWNER HAS NO OBLIGATION TO UPDATE THIS SEMI-ANNUAL REPORT OTHER THAN AS EXPRESSLY PROVIDED IN THE DISCLOSURE AGREEMENT. DATED: t( [Z.[("2.- KB HO=O.astal Inc. BY: k, 'Sco-'-tt-H-a-n-se-n TITLE: Project Manager