REPORT TO THE HOUSING AUTHORITY

Transcription

1 REPORT TO THE HOUSING AUTHORITY DATE ISSUED: December 6, 201 REPORT NO: HAR ATTENTION: SUBJECT: Chair and Members of the Housing Authority of the City of San Diego For the Agenda of January 14, 2014 Final Bond Authorization for Wakeland City Heights (Scattered Sites) COUNCIL DISTRICT: 9 REQUESTED ACTION Authorize the issuance of Housing Authority of the City of San Diego multifamily housing revenue bonds to fund the acquisition and rehabilitation of ten (10) scattered site apartment properties in the City Heights area of San Diego. STAFF RECOMMENDATION That the Housing Authority of the City of San Diego (Housing Authority) authorize the issuance of up to $8 million in multifamily housing revenue bonds for the acquisition and rehabilitation of ten (10) scattered sites apartment properties by a limited partnership comprised of Wakeland Housing and Development Corporation (Wakeland), City Heights Community Development Corporation, and a to be determined tax credit limited partner. SUMMARY The City Heights Community Development Corporation (CHCDC) owns and manages affordable apartments throughout the City Heights neighborhood. Ten different CHCDC properties totaling 12 units have been partially financed by the San Diego Housing Commission (Housing Commission). Since 1992, the Housing Commission has approved a total of 17 amortizing loans or residual receipts loans on these 10 properties to CHCDC as borrower. A map of these 10 CHCDC properties is included as Attachment 1. Wakeland and CHCDC have negotiated a partnership concept (Memorandum of Understanding) for the properties (described in Attachment 2) and jointly approached the Housing Commission in late 2012 with a proposal to acquire and rehabilitate the scattered site project. As a part of the proposed financing plan, the partnership will secure a new allocation of non-competitive 4 percent tax-credits and the issuance of a new tax-exempt bond of up to $8,000,000 provided by Wells Fargo. Proceeds will be used to repay all non-housing Commission debt and rehabilitate the 10 sites. The partnership will assume Housing Commission debt of approximately $6,278,000. In addition, the partnership will use tax-credit proceeds and a transfer of reserves to pay down a minimum of $781,000 in accrued interest on Housing Commission debt. The terms of the previously approved loan consolidation and paydown are described in the Memorandum of Understanding) in Attachment 2.

2 December 6, 201 Final Bond Authorization for Wakeland City Heights (Scattered Sites) Page 2 PROPOSED REHABILIATION None of the 10 scattered sites have been substantially renovated since they were constructed. Based on the results of the Physical Needs Assessment, the scope of work will address the immediate physical needs and will extend the useful life of building systems, reduce operating costs, and improve energy efficiency. The scope has been competitively bid and Sun Country Builders has been selected as the General Contractor. The proposed scope of work is provided as Attachment. 1) Energy Efficiency improvements include: a. Replace all appliances without an Energy Star rating b. Replace all windows lacking in thermal efficiency c. Add Solar Water Heating 2) Other notable improvements include: a. Repair/replace roofs in order to have a 20 year minimum life b. Sewers to be video scoped and repaired and/or replaced c. New irrigation systems d. Repair/replace carpets and tile e. Upgrade site lighting for security purposes The current estimate of rehabilitation costs is approximately $,99,268 ($25,752 per unit). This figure includes the estimated costs to address the immediate repairs, necessary building system replacements, aesthetic upgrades, and general contractor s profit/overhead/general requirements, and a construction contingency of 5 percent of direct costs. RELOCATION As rehabilitation is performed on each unit, households will be moved temporarily off site (approximately three days, two nights). The development budget includes a relocation budget in the amount of $26,800 ($2,476 per unit). AFFORDABLE HOUSING IMPACT The 129 restricted units will be affordable to low- and very low-income households at rents ranging from 50 to 60 percent of the Area Median Income. The units will be affordable for a term of 55 years. The following table describes the proposed rents and affordability levels:. Property Address No. Units Type Unit Type Number of Units Rent Restrictions Max Net Rent Amounts (Based on HUD s 201 Rent Levels San Diego) Alta Vista 2-Bed 2 50% AMI $87 12 Family rd St. 2-Bed 10 60% AMI $1,055 Canyon Vista 2-Bed 6 50% AMI $862 8 Family rd St. 2-Bed 2 60% AMI $1,044 Cornerstone 7 Family 2-Bed 7 50% AMI $ Van Dyke Ave. Euclid Ct. Studio 2 50% AMI $ Euclid 11 Family 1-Bed 8 50% AMI $719

3 December 6, 201 Final Bond Authorization for Wakeland City Heights (Scattered Sites) Page Ave. 2-Bed 1 50% AMI $862 Harmony Homes th St. 12 Senior 1-Bed 12 50% AMI $727 San Diego Apts. Studio 2 50% AMI $ Senior th St. 1-Bed 14* 50% AMI $722 Sycamore Ct. 1-Bed 1 50% AMI $ /2 48th 17 Family $87 2-Bed 16* 50% AMI St. Teralta Ct. 1-Bed 4 50% AMI $ Highland 2-Bed 5 50% AMI $87 Ave. 1 Family 2-Bed 1 60% AMI $1,055 -Bed 1 50% AMI $964 -Bed 2 60% AMI $1,165 Village View 1-Bed 6 50% AMI $ rd St. 0 Family 2-Bed 18* 50% AMI $87 -Bed 6 50% AMI $1,004 West View 1-Bed 1 50% AMI $727 6 Family 56 4rd St. 2-Bed 5 50% AMI $87 Total Restricted Units 129 TOTAL UNITS 12 *Includes one Manager s unit. Manager s units are not income or occupancy restricted. ESTIMATED DEVELOPMENT SCHEDULE January 14, 2014 Housing Authority Final Bond Authorization January 24, 2014 Finance Closing March, 2014 Start of Rehabilitation December 19, 2014 Completion of Rehabilitation DEVELOPMENT TEAM Wakeland, a 501(c)() non-profit housing developer, will be responsible for the rehabilitation and development of the apartment complexes. Wakeland currently has over 5,600 units of affordable housing in its portfolio. The Housing Commission has worked with Wakeland on several successful projects. Recently completed projects include the 40-unit Juniper Gardens Apartments located in City Heights; the 92-unit Village Green Apartments in the Rolando area; and Vista Grande, a 48-unit rehab project located in southeastern San Diego. Wakeland is in compliance with all previous Housing Commission loans and bond issuances. Developer Disclosure Statements for both CHCDC and Wakeland are provided as Attachments 4a and 4b, respectively. Under its new leadership, CHCDC is undergoing a thorough review of their operations and recognizes that it will benefit from a partnership with Wakeland, as Wakeland has the expertise and knowledge to submit a tax credit application and handle the necessary rehabilitation of the properties. As Managing General Partner of the tax credit limited partnership, Wakeland will be responsible for managing the rehabilitation of the 10 properties through completion and cost certification. Going forward, Wakeland will also be responsible for annual reporting to the investor and lenders, making

4 December 6, 201 Final Bond Authorization for Wakeland City Heights (Scattered Sites) Page 4 payments to lenders, preparation of annual property budgets, and oversight of property management activities including marketing, leasing, maintenance, and income-qualification of residents. CHCDC will be the Administrative general partner of the tax credit limited partnership and will continue to provide resident services to households at all 10 properties owned by the partnership. The partnership structure with Wakeland as the developer and City Heights CDC as the service provider ensures that the properties receive the maximum benefit out of the proposed rehabilitation budget and are managed efficiently while preserving affordability for the next 55-years. Table 1- Development Team Owner City Heights Ten, L.P. Managing General Partner: Wakeland City Heights Ten, LLC Co-General Partner: City Heights CDC Limited Partner: The Richman Group Affordable Housing Corporation Developer Wakeland Housing & Development Corporation Lender Wells Fargo Bank General Contractor Sun County Builders Architect Joseph Simon & Associates, Architects & Planners Inc. Property Manager Hyder & Co. FINANCING STRUCTURE The estimated total development cost of the rehabilitation is approximately $16,69,87. Financing sources include 4 percent tax credits, tax-exempt bonds, transfer of reserves, capital contributions from the General Partner, and the assumed Housing Commission loan. Up to $8 million of tax-exempt housing revenue bonds are being requested. Proposed Construction Proposed Permanent Financing Sources Financing Sources LIHTC $486,588 $4,865,881 Housing Revenue Bonds $7,999,75 $4,518,420 Cash Flow from Operations $0 $15,09 Transfer of Reserves $47,26 $47,26 GP Capital Contribution $0 $42,000 SDHC Loan Assumption $6,278,000 $6,278,000 Total $15,27,226 $16,69,87 The partnership will use tax-credit proceeds and a transfer of reserves to pay down a minimum of $781,000 of accrued interest on the Housing Commission loan. The final amount to be paid down and assumed will be determined at closing and adjusted to reflect the actual tax-exempt bond permanent interest rate and the limited partner tax credit equity contribution. The Housing Commission loan amount will be adjusted to an amount necessary for the project to achieve a 1.20 debt service coverage ratio. A Development Summary and the developer s proforma are provided as Attachments 5 and 6, respectively.

5 December 6, 201 Final Bond Authorization for Wakeland City Heights (Scattered Sites) Page 5 PUBLIC DISCLOSURE AND BOND AUTHORIZATION The bonds will be sold through a private placement purchased directly by Wells Fargo Bank. Wells Fargo is considered a qualified institutional buyer within the meaning of U.S. securities laws. At closing, Wells Fargo will sign an Investor s Letter certifying, among other things, that they are buying the bonds for their own accounts and not for public distribution. The bonds are being sold through a private placement and an Official Statement will not be used. In addition, the bonds will not be subject to continuing disclosure requirements, nor will they be credit enhanced or rated. Wells Fargo will hold the Bonds for its own account during rehabilitation. After rehabilitation is complete, the amount of outstanding bonds will be reduced and will be purchased by the California Community Reinvestment Corporation. The transfer of the bonds to any subsequent bondholder will comply with Housing Commission policy number PO Moreover, any subsequent bondholder would be required to represent to the Housing Authority that they are a qualified institutional buyer or accredited investor who is buying the bonds for investment purposes and not for resale, and that they have made due investigation of any material information necessary in connection with the purchase of the bonds. The following documents will be executed on behalf of the Housing Authority: Indenture, Loan Agreement, Assignment of Deed of Trust, Regulatory Agreement, and other loan documents. At the time of docketing, bond documents in substantially final form will be presented to members of the Housing Authority. Any changes to the documents following Housing Authority approval require the consent of the City Attorney s Office and bond counsel. The bonds will be issued pursuant to an Indenture between the Housing Authority and Wells Fargo (acting as the Trustee). Based upon instructions contained in the Indenture, the Trustee will disburse bond proceeds for eligible costs, collect project revenues and make payments to the bondholder. Under the terms of the Loan Agreement, the Housing Authority will loan the proceeds of the bonds to the borrower in order to develop the project. The Loan Agreement sets out the terms of repayment and the security for the loan, and the Housing Authority assigns its rights to receive repayments under the loan to the Trustee. An Assignment of Deed of Trust and other Loan Documents, which assigns the Housing Authority s rights and responsibilities as the bond issuer to Wells Fargo, is signed by the Housing Authority and Wells Fargo. Rights and responsibilities that are assigned to Wells Fargo include the right to collect and enforce the collection of loan payments, monitor project construction and related budgets, and enforce insurance and other requirements. These rights will be used by Wells Fargo as Trustee to protect its financial interests as the Trustee. The Regulatory Agreement will be recorded against the property in order to ensure the long-term use of the project as affordable housing. The Regulatory Agreement will also ensure that the project complies with all applicable federal and state laws. Since the bonds will not be repaid using any City or Housing Authority revenues, it is not appropriate to provide any information about the City s finances. For a summary of the Housing Commission s Multifamily Bond Program and actions that must be taken by the Housing Authority and by the San Diego City Council (City Council) to initiate and finalize bond financings, please see Attachment 7.

6 December 6, 201 Final Bond Authorization for Wakeland City Heights (Scattered Sites) Page 6 Staff has been working with Ross Financial, the Housing Commission s Financial Advisor, to perform due diligence concerning the proposed financing and to formulate a recommendation for the Housing Authority. After evaluating the terms of the proposed financing and the public benefits to be achieved, it is the Financial Advisor s recommendation that the bond issuance for the project be authorized. The Financial Advisor s analysis and recommendation to proceed is included as Attachment 8. Staff is also working with the City Attorney s Office and the City s Disclosure Practices Working Group to assure that the issuance of Housing Authority bonds is in conformance with the City s disclosure requirements. FISCAL CONSIDERATIONS The proposed funding sources and uses approved by this action are included in the Housing Authorityapproved Fiscal Year 2014 Housing Commission Budget. Approving this action will not change the Fiscal Year 2014 total budget. Funding sources approved by this action will be as follows: Bond Issuance Fees - $19,998 (estimate) Paydown of Accrued Interest on Loan - $781,000 (estimate) The bonds will not financially obligate the City, the Housing Authority or the Housing Commission because security for the repayment of the bonds will be limited to specific private revenue sources. Neither the faith and credit nor the taxing power of the City or the Authority would be pledged to the payment of the bonds. The developer is responsible for the payment of all costs under the financing, including the Housing Commission's annual administrative fee, as well as Housing Commission bond counsel and financial advisor fees. PREVIOUS COUNCIL and/or COMMITTEE ACTION Preliminary items pursuant to issuing multifamily housing revenue bonds and the consolidation of the existing Housing Commission loans were approved by the Housing Commission Board on July 19, 201 and the Housing Authority on September 10, 201. The Housing Commission board report for the previously approved actions is included as Attachment 9. This item was approved unanimously at the December 6, 201 Housing Commission Board meeting with a request that preference be given to hiring of local employees. COMMUNITY PARTICIPATION and PUBLIC OUTREACH EFFORTS The project was presented to the City Heights Community Planning Group as an informational item on December 2, 201 and was received positively. KEY STAKEHOLDERS and PROJECTED IMPACTS Stakeholders include Wakeland Housing & Development Corporation as developer and General Partner, City Heights Community Development Corporation as Co-General Partner, the Richman Affordable Housing Corporation as investor, the Housing Authority as bond issuer, and the City Heights community. The Housing Commission is also a stakeholder due to its residual receipts loan and will continue with ongoing compliance monitoring activities. The project is expected to have a positive impact on the residents and community by providing needed capital improvements to the properties and preserving the affordability of the units for 55-years.

7 December 6, 201 Final Bond Authorization for Wakeland City Heights (Scattered Sites) Page 7 ENVIRONMENTAL REVIEW This activity is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) under Section 1501 because it involves the rehabilitation existing facilities which would not result in an expansion of the existing uses. Processing under the National Environmental Policy Act is not required as no federal funds are involved in this action. Respectfully submitted, Cameron Shariati Cameron Shariati Assistant Real Estate Manager Real Estate Division Approved by, Deborah N. Ruane Deborah N. Ruane Senior Vice President Real Estate Division Attachments: 1) CHCDC Properties Map 2) Wakeland / CHCDC Memorandum of Understanding and SDHC Letter of Intent ) Rehab Scope of Work 4) Developer s Disclosure Statement a. CHCDC b. Wakeland 5) Development Summary 6) Developer s Proforma 7) Multifamily Bond Program Summary 8) Financial Advisor Analysis 9) Prior Board Report for Loan Consolidation and Preliminary Bond Approvals (HAR1-02 REVISED) Hard copies are available for review during business hours in the main lobby of the San Diego Housing Commission offices at 1122 Broadway, San Diego, CA and at the Office of the San Diego City Clerk, 202 C Street, San Diego, CA You may also review complete docket materials on the San Diego Housing Commission website at

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22 Wakeland - City Heights 10 Project Summary Rev. 10/28/1 - To reflect Additions and Deletions to revised PNA Property Unit Count Construction Cost Cost per Unit Notes Alta Vista 12 16, ,87.20 Canyon Vista 8 202, ,4.5 Cornerstone Apartments 7 200, , Euclid , ,859.7 Harmony Homes 12 18, ,51.47 San Diego Apartments 16 14, , Reflects gutters and downspouts. misc. site work, security cameras Sycamore Court 17 85, , and solar water heating. Teralta Court 1 161, , Village View 0 687, PNA called for attic insulation. This is flat roof without access. Also, allowance was added for roof repairs at suggestion of maintenance 22, personnel. West View Apartments 6 176, ,4.46 Total 12 2,458, ,624.8 Bond & Insurance 2.56% 62,95.50 Sub Total 2,521,5.29 Profit, Overhead, and Gen. Conditions 14.00% 52, Grand Total 2,874, ,775.2 Notes (Differences from PNA): Includes E-star refrigerators at all units. Differences in interior finishes may differ from PNA as necessitated by cabinet replacements and actual conditions. LED light bulbs, per PNA, are not included, but flourescent E-star fixtures throughout are included. Ceiling fans in selected projects as indicated in PNA are not included due to extensive drywall, paint, fan boxes, and wiring required - also additional relocation time. Soft costs such as resident relocation expense and building permits are not included. Re-framing closet openings due to unnecessary expense of added, paint, framing and drywall work was not cost effective. 8' tall closet doors are included. All new interior and exterior door hardware was not included unless necessary or with door replacements. This was listed on select projects. Seismic and hazardous materials investigations are not included. Estimates for Solar Hot Water, PV Electric, security cameras, etc., were added, or estimates revised as indicated on the revised PNAs. Termite tenting or spot treatment is not included pending inspection reports. Budget is based on completing the project in six months.

23 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 Alta Vista Apartments Unit of Measure Cost Code Total Description Unit Qty Demolition & Pest Control - Demo cabinets & plumbing Incl. disposal Ea Misc. Exterior Demo LS Tub Showers Ea Tub Showers Ea Hazmat / Mold abatement Units Tent for Termites - No Report LS Termite Spot Treatment - No Report LS Grading - Grading & Soil Removal AC Paving Repair AC paving including signage & striping SF Seal & Re-stripe Parking Lot 2,000 SF PCC Paving R&R walks SF Miscellaneous repairs, grind, crack fill, etc. 1 LS Domestic Water 1,09.00 Backflow Prevention Valve Cage with Concrete base 2 Ea Storm Drains - Misc. Drainage Improvements LS 2-70 Sewer - Video Inspection, repair, and related site work Allow Under Subfloor or underslab repairs Allow 2-80 Fencing, gates & masonry 5, Trash Enclosure Gates Ea Tubular Steel Fences, including paint LF Tube steel ped gates & Hardware 4 Ea R&R Wood Fencing, incl. paint LF Fencing repairs LS New Trash Enclosure (tube steel w/mesh, 16x5 incl. gate) 1 Ea Site & Street Furnishings 2,80.00 Wall Mount Safety Lighting Ea Play Equipment & surfacing LS Charcoal BBQ, trash receptical & Coal Bin Ea Replace telephone entry system LS Miscellaneous Exterior Security Lighting and electrical LS Repair Telephone entry system LS Repair Drive gate and opener LS Allow Unspecified Site Improvements 1 LS Landscaping 1, Allow Rennovate site landscaping & irrigation 1 LS Allowance subject to approval of design Repairs to Planters LS -00 Concrete - Misc. Foundation repairs LS Misc Metals - Replace Stair or Balcony Railings LF Repair or Replace Concrete stair treads Ea Rough Carpentry 1, Allow Repair/replace exterior wood trim work, fascia, etc.. 1 LS Structural deck repairs LS Repair loose and squeaking subfloors approx. 25% of 2nd floor units Units R&R roof sheathing (in 2 sf increments) SF R&R Deck Sheathing (in 2 sf increments) SF Misc. Laundry room upgrades LS Misc. Room/Comm Room/Other Revisiions LS Misc. ADA Upgrades - All Included Units Finish Carpentry and Hardware,84.70 Alta Vista - City Heights Est - Rev xls

24 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 Alta Vista Apartments Description Unit Qty Unit of Measure Cost Code Total Hot water Closet Door Ea R Hot water Closet Door Ea Ext. Storage Closet Door Ea R Ext. Storage Closet Door Ea Entry Entry Door (includes hardware) Ea Entry R Entry Door Ea Entry Entry Door Frame (includes stucco patch) Ea Entry R Entry Door Frame Ea LR Entry Closet Door Ea LR R Entry Closet Door Ea Entry Broom Closet Door Ea Entry R Broom Closet Door Ea Bed 1 Closet Doors 5 Ea Bed 1 R Closet Doors Ea Bed 2 Closet Doors 5 Ea Bed 2 R Closet Doors Ea Bed Closet Doors Ea Bed R Closet Doors Ea Bed 1 Bedroom Doors Ea Bed 1 R Bedroom Doors Ea Bed 2 Bedroom Doors 2 Ea Bed 2 R Bedroom Doors Ea Bed Bedroom Doors Ea Bed R Bedroom Doors Ea Bath 1 TP Holder and Towel Rack (2) R&R Ea Pwdr TP Holder and Towel Rack (2) R&R Ea Bath 1 Medicine Cabinet Ea Bath 2 Medicine Cabinet Ea Bath 1 Bathroom Door Ea Bath 1 R Bathroom Door Ea Bath 2 Bathroom Door 2 Ea Bath 2 R Bathroom Door Ea Security Screen Door Ea Replace Door Weatherstripping and draft-stopping Units Entry Door Hardware Only Ea Base shoe Ea Countertops-Laminate & Unilav - Kit Kitchen Counter - P-lam Ea Bath 1 Bathroom Countertop - Cultured Marble Unilav Ea Bath 2 Bathroom Countertop - Cultured Marble Unilav Ea Com Community center tops - P-lam Ea Insulation - Add blown-in insulation in attics - (upstairs units only with attics) Units R 7-20 Roofing - Misc. roofing repairs & Maintenance Allow Replace Roofing (pending specifications) Allow Deck Coating - Refinish/ Replace exterior deck & stairs waterproofing - Per upstairs Unit Ea Sheet Metal - Gutters and Downspouts LS 8-60 Overhead doors (Garage doors) - Replace Garage Doors Ea Install electric garage door openers, incl. electrical Ea 8-60 Windows - Replace windows in apartment units - Vinyl Ea Replace Sliding Glass Doors - Vinyl Ea Window security bars on all first floor windows Ea Mirrors - Bath 1 Mirror - Some good, but must be replaced with Vanity & Top Ea Bath 2 Mirror - Some good, but must be replaced with Vanity & Top Ea Lath and Plaster - Exterior plaster repairs required pre-paint - (Allow. Per unit) Units Stucco repairs required for window replacement LS Drywall 1, Alta Vista - City Heights Est - Rev xls

25 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 Alta Vista Apartments Description Unit Qty Unit of Measure Cost Code Total Drywall Patch & Texture - including paint touch up 1 Ea 2 Drywall Patch & Texture - including paint touch up 2 Ea Drywall repairs at Replaced tub/shower units Ea Ea 9-6XX All flooring 2, Unit R&R Flooring with All Vinyl - 1 Bedroom 11 Ea R&R Flooring with All Vinyl - Add for 2 Bedroom 11 Ea R&R Flooring with All Vinyl - Add for Bedroom Ea Subfloor repairs & floor prep (equal to units getting flooring) Ea Community Building carpet and VCT LS Painting 1, Unit Paint - Complete Unit Ea Unit Paint - K&B only - one bathroom (equals new cabinets) Ea. Repaint Building Exterior - Complete (per unit based on unit count) Units Paint exterior, wood trim, louvers, fascia, decks, etc. LS Paint trash enclosures and site iron work Incl Paint site wood fencing Incl Community Building LS Signage 2,80.00 Allow New Signage 1 Allow Fire prevention specialties Specialties - mailboxes - Install new mail boxes - unit count plus parcel boxes Ea Appliances 8, Kit Range Ea Kit Range Hood Ea Kit Refrigerator 12 Ea Furniture/equipment - pool, office, maintenance and community spaces - BY OWNER Kit Community Building Range Hood Ea Cabinets Units Cabinets - baths incl. (Weighted Average) Ea Units Cabinets - Miscellaneous repairs 2 Ea Bath 1 Vanity Cabinet Incl Pwdr Vanity Cabinet Incl Comm Community Building Ea Blinds - All Windows Coverings - Per Unit Ea Comm 2 Windows Coverings Ea Plumbing - 41,81.00 Hot Water Heater Ea Hot Water Heater - Service Boiler 1 Ea Bath 1 Lavatory & Faucet Ea Bath 1 Toilet Ea Bath 2 Lavatory & Faucet Ea Bath 2 Toilet Ea Kit Sink and Faucet Ea Kit Garbage Disposal Incl Kit Range Connect & install anti-tip Ea Bath 1 Tub / Shower Surround - Replace Ea Bath 1 R Tub / Shower Surround - Refinish 4 Ea Bath 1 Tub / Shower Valve Ea Bath 2 Tub / Shower Valve 2 Ea Bath 2 Tub / Shower Surround - Refinish 2 Ea Individual Unit shut-off valves Ea Allow Solar Hot Water System 1 LS ADA Upcharge for ADA Toilets Ea Alta Vista - City Heights Est - Rev xls

26 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 Alta Vista Apartments Description Unit Qty Unit of Measure Cost Code Total HVAC 11, Furnaces, PTACs, Wall Heaters, Fan Coils - Weighted Average Ea Furnaces Repairs & servicing - Electric wall heaters 1 LS Bath 1 Humidistat Exhaust Fan 12 Ea Bath 2 Humidistat Exhaust Fan 12 Ea Duct bath Fans to outside Ea Attic Exhaust Fans 4 Ea HERS Testing? Upgrade of HVAC Efficiency Ratings? Electrical 11, LR/Kit Entry, Kitchen, Living, Dining, Hall light fixtures 12 Ea Ea Kit GFCI comp kitchen - replace outlets as needed - no dedicated circuit necces. Ea Bath 1 GFCI (1 per) Ea Bath 2 GFCI (1 per) Ea Bath 1 Vanity Light 12 Ea Bath 2 Vanity Light 12 Ea Ea Repair/replace exterior safety and site light fixtures Fixtures Replace all electric outlets, switches and GFI'S - 1 bedroom units Units Replace all electric outlets, switches and GFI'S - 2 bedroom units Units Replace all electric outlets, switches and GFI'S - bedroom Units Units Replace battery smokes in bdrms - Hardwire Smoke/CO2 in hall - existing wiring 12 Units Install photovoltaic system Allow Low voltage 2, Install Wifi system to all units Allow Allow Install Security camera system - unspecified 1 Allow Rough and Finish Cleanup/Disposal/Recycling 6, Rough Clean, including disposal fees Ea Final Clean 12 Ea Permits - By Owner TOTAL OF LINE ITEM COSTSSub Totals 16, Option Items New Door hardware Cabinet knobs Patio Doors only 4 years old Blind repairs - maintenance Replace 1.6 GPF toilets with 1.28 GPF Alta Vista - City Heights Est - Rev xls

27 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 Canyon Vista Apartments Unit of Measure Cost Code Total Description Unit Qty Demolition & Pest Control 10,29.20 Demo cabinets & plumbing Incl. disposal Ea Misc. Exterior Demo LS Tub Showers 8 Ea Hazmat / Mold abatement Units Tent for Termites - No Report LS Termite Spot Treatment - No Report LS Abatement for tub/showers 8 Ea Grading - Grading & Soil Removal AC Paving Repair AC paving including signage & striping SF Seal / Re-stripe Parking Lot 1,600 SF PCC Paving - R&R walks SF Miscellaneous repairs, grind, crack fill, etc. LS Domestic Water Backflow Prevention Valve Cage with Concrete base 1 Ea Storm Drains - Misc. Drainage Improvements LS 2-70 Sewer 11, Allow Video Inspection, repair, and related site work 1 Allow Under Subfloor or underslab repairs Allow 2-80 Fencing, gates & masonry 2, Trash Enclosure Gates Ea Tubular Steel Fences, including paint LF Tube steel ped gates & Hardware 4 Ea R&R Wood Fencing, incl. paint LF Fencing repairs LS New Trash Enclosure (tube steel w/mesh, 16x5 incl. gate) Ea Site & Street Furnishings 2, Wall Mount Safety Lighting Ea Allow Play Equipment & surfacing LS Allow Charcoal BBQ, trash receptical & Coal Bin Ea Allow Replace telephone entry system LS Allow Miscellaneous Exterior Security Lighting and electrical 1 LS Repair Telephone entry system LS Repair Drive gate and opener LS Allow Unspecified Site Improvements 1 LS Landscaping 2,80.00 Allow Rennovate site landscaping & irrigation 1 LS Allowance subject to approval of design Repairs to Planters LS -00 Concrete 20, Misc. Foundation repairs LS Allow Floor Leveling Allowance per PNA 1 LS Misc Metals - Replace Stair or Balcony Railings LF Repair or Replace Concrete stair treads Ea Rough Carpentry 21, Allow Repair/replace exterior wood trim work, fascia, etc.. LS Allow Structural deck repairs / balcony decks / Floor leveling 1 LS Repair loose and squeaking subfloors approx. 50% of 2nd floor units 2 Units Allow R&R roof sheathing (in 2 sf increments) SF Allow R&R Deck Sheathing (in 2 sf increments) SF Misc. Laundry room upgrades 1 LS Misc. Room/Comm Room/Other Revisiions LS Misc. ADA Upgrades - All Included Units Construct water heater sheds - complete 4 Ea Bath subfloor repairs / tub replacements, etc. 8 Ea Finish Carpentry and Hardware, Hot water Closet Door Ea Canyon Vista - City Heights Est - Rev xls

28 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 Canyon Vista Apartments Description Unit Qty Unit of Measure Cost Code Total R Hot water Closet Door Ea Ext. Storage Closet Door Ea R Ext. Storage Closet Door Ea Entry Entry Door (includes hardware) 1 Ea Entry R Entry Door 1 Ea Entry Entry Door Frame (includes stucco patch) Ea Entry R Entry Door Frame Ea LR Entry Closet Door 2 Ea LR R Entry Closet Door Ea Entry Broom Closet Door Ea Entry R Broom Closet Door Ea Bed 1 Closet Doors 2 Ea Bed 1 R Closet Doors Ea Bed 2 Closet Doors 2 Ea Bed 2 R Closet Doors Ea Bed Closet Doors Ea Bed R Closet Doors Ea Bed 1 Bedroom Doors 4 Ea Bed 1 R Bedroom Doors Ea Bed 2 Bedroom Doors 4 Ea Bed 2 R Bedroom Doors Ea Bed Bedroom Doors Ea Bed R Bedroom Doors Ea Bath 1 TP Holder and Towel Rack (2) R&R Ea Pwdr TP Holder and Towel Rack (2) R&R Ea Bath 1 Medicine Cabinet Ea Bath 2 Medicine Cabinet Ea Bath 1 Bathroom Door Ea Bath 1 R Bathroom Door Ea Bath 2 Bathroom Door Ea Bath 2 R Bathroom Door Ea Security Screen Door 2 Ea Replace Door Weatherstripping and draft-stopping Units Entry Door Hardware Only Ea Base shoe Ea Countertops-Laminate & Unilav - Kit Kitchen Counter - P-lam Ea Bath 1 Bathroom Countertop - Cultured Marble Unilav Ea Bath 2 Bathroom Countertop - Cultured Marble Unilav Ea Com Community center tops - P-lam Ea Insulation - Option Add blown-in insulation in attics - (upstairs units only with attics) Units 7-20 Roofing - Allow Misc. roofing repairs & Maintenance Allow Allow Replace Roofing (pending specifications) Allow Deck Coating - Refinish/ Replace exterior deck & stairs waterproofing - Per upstairs Unit Ea Refinish exterior deck & stairs waterproofing - Ea Sheet Metal - Gutters and Downspouts LS 8-60 Overhead doors (Garage doors) - Replace Garage Doors Ea Install electric garage door openers, incl. electrical Ea 8-60 Windows - Replace windows in apartment units - Vinyl Ea Replace Sliding Glass Doors - Vinyl Ea Window security bars on all first floor windows Ea Mirrors - Bath 1 Mirror - Some good, but must be replaced with Vanity & Top Ea Bath 2 Mirror - Some good, but must be replaced with Vanity & Top Ea Lath and Plaster - Allow Exterior plaster repairs required pre-paint - (Allow. Per unit) Units Stucco repairs required for window replacement LS Drywall 8, Drywall Patch & Texture - including paint touch up 8 Ea 2 Drywall Patch & Texture - including paint touch up Ea Canyon Vista - City Heights Est - Rev xls

29 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 Canyon Vista Apartments Description Unit Qty Unit of Measure Cost Code Total Drywall repairs at Replaced tub/shower units 8 Ea Ea 9-6XX All flooring 2, Unit R&R Flooring with All Vinyl - 1 Bedroom 8 Ea R&R Flooring with All Vinyl - Add for 2 Bedroom 8 Ea R&R Flooring with All Vinyl - Add for Bedroom Ea Allow Subfloor prep (equal to units getting flooring) 8.00 Ea Community Building carpet and VCT LS Painting 10, Unit Paint - Complete Unit 6 Ea Unit Paint - K&B only - one bathroom (equals new cabinets) 2 Ea. Repaint Building Exterior - Complete (per unit based on unit count) Units Paint exterior, wood trim, louvers, fascia, decks, etc. LS Paint trash enclosures and site iron work Incl Paint site wood fencing Incl Community Building LS Signage 2,80.00 Allow New Signage 1 Allow Allow Fire prevention specialties Specialties - mailboxes - Allow Install new mail boxes - unit count plus parcel boxes Ea Appliances 5, Kit Range Ea Kit Range Hood Ea Kit Refrigerator 8 Ea Q Furniture/equipment - office, maint and community spaces - BY OWNER Kit Community Building Range Hood Ea Cabinets Units Cabinets - baths incl. (Weighted Average) Ea Units Cabinets - Miscellaneous repairs 2 Ea Bath 1 Vanity Cabinet Incl Pwdr Vanity Cabinet Incl Comm Community Building Ea Blinds - All Windows Coverings - Per Unit Ea Comm 2 Windows Coverings Ea Plumbing - 14, Hot Water Heater Ea Hot Water Heater - Service Boiler Ea Bath 1 Lavatory & Faucet Ea Bath 1 Toilet Ea Bath 2 Lavatory & Faucet Ea Bath 2 Toilet Ea Kit Sink and Faucet Ea Kit Garbage Disposal Incl Kit Range Connect & install anti-tip Ea Bath 1 Tub / Shower Surround - Replace 8 Ea Bath 1 R Tub / Shower Surround - Refinish Ea Bath 1 Tub / Shower Valve 8 Ea Bath 2 Tub / Shower Surround - Replace Ea Bath 2 R Tub / Shower Surround - Refinish Ea Bath 2 Tub / Shower Valve Ea Seismic Strap water heater 8 Ea Allow Individual Unit shut-off valves Ea Allow Solar Hot Water System LS ADA Upcharge for ADA Toilets Ea HVAC 4, Canyon Vista - City Heights Est - Rev xls

30 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 Canyon Vista Apartments Description Unit Qty Unit of Measure Cost Code Total Furnaces, PTACs, Wall Heaters, Fan Coils - Weighted Average Ea Furnaces Repairs & servicing - Electric wall heaters 8 Ea Bath 1 Humidistat Exhaust Fan Ea Bath 2 Humidistat Exhaust Fan Ea Allow Duct bath Fans to outside 8 Ea Attic Exhaust Fans Ea Ea HERS Testing? Upgrade of HVAC Efficiency Ratings? Electrical 46,0.80 LR/Kit Entry, Kitchen, Living, Dining, Hall light fixtures 8 Ea Ea Kit GFCI comp kitchen - replace outlets as needed - no dedicated circuit necces. Ea Bath 1 GFCI (1 per) Ea Bath 2 GFCI (1 per) Ea Bath 1 Vanity Light 8 Ea Bath 2 Vanity Light Ea Misc. electrical - trim, repairs, etc. 8 Ea Repair/replace exterior safety and site light fixtures Fixtures Replace all electric outlets, switches and GFI'S - 1 bedroom units Units Replace all electric outlets, switches and GFI'S - 2 bedroom units Units Replace all electric outlets, switches and GFI'S - bedroom Units Units Replace battery smokes in bdrms - Hardwire Smoke/CO2 in hall - existing wiring Units Allow Install photovoltaic system 1 Allow Low voltage 4, Allow Install Wifi system to all units Allow Allow Install Security camera system - unspecified 1 Allow Rough and Finish Cleanup/Disposal/Recycling 4, Rough Clean, including disposal fees Ea Final Clean 8 Ea Permits - By Owner TOTAL OF LINE ITEM COSTS Sub Totals 202, Option Items New Door hardware Cabinet knobs Patio Doors only 4 years old Blind repairs - maintenance Replace 1.6 GPF toilets with 1.28 GPF Canyon Vista - City Heights Est - Rev xls

31 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 Cornerstone Apartments Unit of Measure Cost Code Total Description Unit Qty Demolition & Pest Control 10, Demo cabinets & plumbing Incl. disposal 5 Ea Misc. Exterior Demo 1 LS Tub Showers Ea Hazmat / Mold abatement Units Allow Tent for Termites - No Report 1 Allow Termite Spot Treatment - No Report LS Abatement for tub/showers Ea Grading - Grading & Soil Removal AC Paving - Repair AC paving including signage & striping SF Seal / Re-stripe Parking Lot SF PCC Paving R&R walks SF Miscellaneous repairs, grind, crack fill, etc. 1 LS Domestic Water Backflow Prevention Valve Cage with Concrete base 1 Ea Storm Drains - Misc. Drainage Improvements LS 2-70 Sewer - Allow Video Inspection, repair, and related site work Allow Under Subfloor or underslab repairs Allow 2-80 Fencing, gates & masonry 6,78.00 Trash Enclosure Gates Ea Tubular Steel Fences, including paint LF Tube steel ped gates & Hardware 2 Ea R&R Wood Fencing, incl. paint LF Fencing repairs incl. paint - wood and metal 20 LF New Trash Enclosure (tube steel w/mesh, 16x5 incl. gate) Ea Site & Street Furnishings 2,80.00 Wall Mount Safety Lighting Ea Allow Play Equipment & surfacing LS Allow Charcoal BBQ, trash receptical & Coal Bin Ea Allow Replace telephone entry system LS Allow Miscellaneous Exterior Security Lighting and electrical LS Repair Telephone entry system LS Repair Drive gate and opener LS Allow Unspecified Site Improvements 1 LS Landscaping, Allow Rennovate site landscaping & irrigation 1 LS Allowance subject to approval of design Repairs to Planters LS -00 Concrete - Misc. Foundation repairs LS Misc Metals 4, Replace Stair or Balcony Railings 60 LF Repair or Replace Concrete stair treads 2 Ea Rough Carpentry 11, Repair/replace exterior wood trim work, fascia, etc.. - T-111 Siding 1 LS Allow Structural deck repairs / balcony decks / Floor leveling LS Repair loose and squeaking subfloors approx. 50% of 2nd floor units 4 Units Allow R&R roof sheathing (in 2 sf increments) SF Allow R&R Deck Sheathing (in 2 sf increments) SF Misc. Laundry room upgrades 1 LS Misc. Room/Comm Room/Other Revisiions LS Allow Misc. ADA Upgrades - All Included 1 LS Construct water heater sheds - complete Ea Bath subfloor repairs / tub replacements, etc. Ea Finish Carpentry and Hardware 8, Hot water Closet Door Ea R Hot water Closet Door Ea Cornerstone Apts - City Heights Est - Rev xls

32 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 Cornerstone Apartments Description Unit Qty Unit of Measure Cost Code Total Ext. Storage Closet Door 2 Ea R Ext. Storage Closet Door Ea Entry Entry Door (includes hardware) Ea Entry R Entry Door Ea Entry Entry Door Frame (includes stucco patch) Ea Entry R Entry Door Frame Ea LR Entry Closet Door Ea LR R Entry Closet Door Ea Entry Broom Closet Door Ea Entry R Broom Closet Door Ea Bed 1 Closet Doors 6 Ea Bed 1 R Closet Doors Ea Bed 2 Closet Doors 7 Ea Bed 2 R Closet Doors Ea Bed Closet Doors Ea Bed R Closet Doors Ea Bed 1 Bedroom Doors 1 Ea Bed 1 R Bedroom Doors Ea Bed 2 Bedroom Doors Ea Bed 2 R Bedroom Doors Ea Bed Bedroom Doors Ea Bed R Bedroom Doors Ea Bath 1 TP Holder and Towel Rack (2) R&R 7 Ea Bath 2 TP Holder and Towel Rack (2) R&R 7 Ea Bath 1 Medicine Cabinet 7 Ea Bath 2 Medicine Cabinet 7 Ea Bath 1 Bathroom Door 7 Ea Bath 1 R Bathroom Door Ea Bath 2 Bathroom Door 7 Ea Bath 2 R Bathroom Door Ea Security Screen Door Ea Replace Door Weatherstripping and draft-stopping Units Entry Door Hardware Only Ea Base shoe 5 Ea Countertops-Laminate & Unilav 5, Kit Kitchen Counter - P-lam 5 Ea Bath 1 Bathroom Countertop - Cultured Marble Unilav 7 Ea Bath 2 Bathroom Countertop - Cultured Marble Unilav 7 Ea Com Community center tops - P-lam Ea Insulation - Option Add blown-in insulation in attics - (upstairs units only with attics) Units 7-20 Roofing 1, Allow Misc. roofing repairs & Maintenance Allow Allow Replace Roofing (pending specifications) 44 Sq Deck Coating 2,02.00 Refinish/ Replace exterior deck & stairs waterproofing - Per upstairs Unit Ea Refinish exterior deck & stairs waterproofing - 2 Ea Sheet Metal Gutters and Downspouts - Repair or replace 1 LS 8-60 Overhead doors (Garage doors) 1, Replace Garage Doors Ea Install electric garage door openers, incl. electrical 4 Ea 8-60 Windows - Replace windows in apartment units - Vinyl Ea Replace Sliding Glass Doors - Vinyl Ea Window security bars on all first floor windows Ea Mirrors Bath 1 Mirror - Some good, but must be replaced with Vanity & Top 7 Ea Bath 2 Mirror - Some good, but must be replaced with Vanity & Top 7 Ea Lath and Plaster - Allow Exterior plaster repairs required pre-paint - (Allow. Per unit) Units Stucco repairs required for window replacement LS Drywall 4, Drywall Patch & Texture - including paint touch up 4 Ea 2 Drywall Patch & Texture - including paint touch up 1 Ea Drywall repairs at Replaced tub/shower units Ea Cornerstone Apts - City Heights Est - Rev xls

33 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 Cornerstone Apartments Description Unit Qty Unit of Measure Cost Code Total Frame in and abandon electric fireplaces 7 Ea 9-6XX All flooring 11, Unit R&R Flooring with All Vinyl - 1 Bedroom 4 Ea R&R Flooring with All Vinyl - Add for 2 Bedroom 4 Ea R&R Flooring with All Vinyl - Add for Bedroom Ea Allow Subfloor prep (equal to units getting flooring) 4.00 Ea Community Building carpet and VCT LS Painting 8, Unit Paint - Complete Unit 2 Ea Unit Paint - K&B only - one bathroom (equals new cabinets) Ea. Repaint Building Exterior - Complete (per unit based on unit count) Units Paint exterior, wood trim, louvers, fascia, decks, etc. - T-111 & trim 1 LS Paint trash enclosures and site iron work 220 LF Paint site wood fencing Incl Community Building LS Signage 2,80.00 Allow New Signage 1 Allow Allow Fire prevention specialties Specialties - mailboxes - Allow Install new mail boxes - unit count plus parcel boxes Ea Appliances 8, Kit Range 7 Ea Kit Range Hood 7 Ea Kit Refrigerator 7 Ea Q Furniture/equipment - office, maint and community spaces - BY OWNER Kit Community Building Range Hood Ea Cabinets 1,28.00 Units Cabinets - baths incl. (Weighted Average) 5 Ea Units Cabinets - Miscellaneous repairs Ea Bath 1 Vanity Cabinet 2 Ea Bath 2 Vanity Cabinet 2 Ea Comm Community Building Ea Blinds - All Windows Coverings - Per Unit Ea Comm 2 Windows Coverings Ea Plumbing - 6,96.4 Hot Water Heater Ea Hot Water Heater - Service Boiler Ea Bath 1 Lavatory & Faucet 7 Ea Bath 1 Toilet Ea Bath 2 Lavatory & Faucet 7 Ea Bath 2 Toilet Ea Kit Sink and Faucet 5 Ea Kit Garbage Disposal 5 Incl Kit Range Connect & install anti-tip 7 Ea Bath 1 Tub / Shower Surround - Replace Ea Bath 1 R Tub / Shower Surround - Refinish 7 Ea Bath 1 Tub / Shower Valve 7 Ea Bath 2 Tub / Shower Surround - Replace Ea Bath 2 R Tub / Shower Surround - Refinish Ea Bath 2 Tub / Shower Valve Ea Seismic Strap water heater Ea Allow Individual Unit shut-off valves Ea Allow Solar Hot Water System 1 LS ADA Upcharge for ADA Toilets Ea HVAC 22, Furnaces, PTACs, Wall Heaters, Fan Coils - Weighted Average 7 Ea Cornerstone Apts - City Heights Est - Rev xls

34 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 Cornerstone Apartments Description Unit Qty Unit of Measure Cost Code Total Furnaces Repairs & servicing - Electric wall heaters Ea Bath 1 Humidistat Exhaust Fan 14 Ea Bath 2 Humidistat Exhaust Fan 7 Ea Allow Duct bath Fans to outside 7 Ea Attic Exhaust Fans Ea Ea HERS Testing? Upgrade of HVAC Efficiency Ratings? Electrical 7,80.20 LR/Kit Entry, Kitchen, Living, Dining, Hall light fixtures 7 Ea Ea Kit GFCI comp kitchen - replace outlets as needed - no dedicated circuit necces. Ea Bath 1 GFCI (1 per) Ea Bath 2 GFCI (1 per) Ea Bath 1 Vanity Light 7 Ea Bath 2 Vanity Light 7 Ea Misc. electrical - trim, repairs, etc. 7 Ea Repair/replace exterior safety and site light fixtures Fixtures Replace all electric outlets, switches and GFI'S - 1 bedroom units Units Replace all electric outlets, switches and GFI'S - 2 bedroom units Units Replace all electric outlets, switches and GFI'S - bedroom Units Units Replace battery smokes in bdrms - Hardwire Smoke/CO2 in hall - existing wiring 7 Units Allow Install photovoltaic system Allow Low voltage 5, Allow Install Wifi system to all units Allow Allow Install Security camera system - unspecified 1 Allow Rough and Finish Cleanup/Disposal/Recycling 7,78.00 Rough Clean, including disposal fees 5 Ea Final Clean 7 Ea Permits - By Owner TOTAL OF LINE ITEM COSTS Sub Totals 200,71.6 Option Items New Door hardware Cabinet knobs Patio Doors only 4 years old Blind repairs - maintenance Replace 1.6 GPF toilets with 1.28 GPF Cornerstone Apts - City Heights Est - Rev xls

35 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 Euclid Apartments Unit of Measure Cost Code Total Description Unit Qty Demolition & Pest Control - Demo cabinets & plumbing Incl. disposal Ea Misc. Exterior Demo LS Tub Showers Ea Hazmat / Mold abatement Units Tent for Termites - No Report LS Termite Spot Treatment - No Report LS Abatement for tub/showers Ea Grading - Grading & Soil Removal AC Paving - Repair AC paving including signage & striping SF Seal / Re-stripe Parking Lot SF PCC Paving 8,0.00 R&R walks 500 SF Miscellaneous repairs, grind, crack fill, etc. - Patch and recoat 1 LS Domestic Water Backflow Prevention Valve Cage with Concrete base 1 Ea Storm Drains 2,80.00 Allow Misc. Drainage Improvements 1 LS 2-70 Sewer 16, Allow Video Inspection, repair, and related site work 1 Allow Allow Under Subfloor or underslab repairs - Sanitary line replace in crawl spaces 5 Allow 2-80 Fencing, gates & masonry 2, Trash Enclosure Gates Ea Tubular Steel Fences, including paint LF Tube steel ped gates & Hardware Ea R&R Wood Fencing, incl. paint LF Fencing repairs LS New Trash Enclosure (tube steel w/mesh, 16x5 incl. gate) 1 Ea Site & Street Furnishings 1, Wall Mount Safety Lighting Ea Allow Play Equipment & surfacing LS Allow Charcoal BBQ, trash receptical & Coal Bin Ea Allow Replace telephone entry system LS Allow Miscellaneous Exterior Security Lighting and electrical LS Repair Telephone entry system LS Repair Drive gate and opener LS Allow Unspecified Site Improvements 1 LS Landscaping 2,80.00 Allow Rennovate site landscaping & irrigation 1 LS Allowance subject to approval of design Repairs to Planters LS -00 Concrete 2,80.00 Allow Misc. Foundation repairs 1 LS Misc Metals - Replace Stair or Balcony Railings LF Repair or Replace Concrete stair treads Ea Rough Carpentry 2, Allow Repair/replace exterior wood trim work, fascia, etc.. LS Allow Structural deck repairs / balcony decks / Floor leveling LS Repair loose and squeaking subfloors approx. 50% of 2nd floor units Units Allow R&R roof sheathing (in 2 sf increments) SF Allow R&R Deck Sheathing (in 2 sf increments) SF Misc. Laundry room upgrades LS Misc. Room/Comm Room/Other Revisiions LS Misc. ADA Upgrades - All Included 1 Units Construct water heater sheds - complete Ea Bath subfloor repairs / tub replacements, etc. Ea Finish Carpentry and Hardware 2, Hot water Closet Door Ea Euclid - City Heights Est - Rev xls

36 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 Euclid Apartments Description Unit Qty Unit of Measure Cost Code Total R Hot water Closet Door Ea Ext. Storage Closet Door Ea R Ext. Storage Closet Door Ea Entry Entry Door (includes hardware) Ea Entry R Entry Door Ea Entry Entry Door Frame (includes stucco patch) Ea Entry R Entry Door Frame Ea LR Entry Closet Door Ea LR R Entry Closet Door Ea Entry Broom Closet Door Ea Entry R Broom Closet Door Ea Bed 1 Closet Doors Ea Bed 1 R Closet Doors Ea Bed 2 Closet Doors Ea Bed 2 R Closet Doors Ea Bed Closet Doors Ea Bed R Closet Doors Ea Bed 1 Bedroom Doors Ea Bed 1 R Bedroom Doors Ea Bed 2 Bedroom Doors Ea Bed 2 R Bedroom Doors Ea Bed Bedroom Doors Ea Bed R Bedroom Doors Ea Bath 1 TP Holder and Towel Rack (2) R&R Ea Pwdr TP Holder and Towel Rack (2) R&R Ea Bath 1 Medicine Cabinet Ea Bath 2 Medicine Cabinet Ea Bath 1 Bathroom Door Ea Bath 1 R Bathroom Door Ea Bath 2 Bathroom Door Ea Bath 2 R Bathroom Door Ea Security Screen Door Ea Replace Door Weatherstripping and draft-stopping 11 Units Entry Door Hardware Only Ea Base shoe Ea Countertops-Laminate & Unilav - Kit Kitchen Counter - P-lam Ea Bath 1 Bathroom Countertop - Cultured Marble Unilav Ea Bath 2 Bathroom Countertop - Cultured Marble Unilav Ea Com Community center tops - P-lam Ea Insulation - Option Add blown-in insulation in attics - (upstairs units only with attics) Units 7-20 Roofing - Allow Misc. roofing repairs & Maintenance Allow Allow Replace Roofing (pending specifications) Allow Deck Coating - Refinish/ Replace exterior deck & stairs waterproofing - Per upstairs Unit Ea Refinish exterior deck & stairs waterproofing - Ea Sheet Metal - Gutters and Downspouts LS 8-60 Overhead doors (Garage doors),2.00 Replace Garage Doors Ea Install electric garage door openers, incl. electrical 8 Ea 8-60 Windows 6, Replace windows in apartment units - Vinyl 95 Approx Replace Sliding Glass Doors - Vinyl - Ea Window security bars on all first floor windows Ea Mirrors - Bath 1 Mirror - Some good, but must be replaced with Vanity & Top Ea Bath 2 Mirror - Some good, but must be replaced with Vanity & Top Ea Lath and Plaster - Allow Exterior plaster repairs required pre-paint - (Allow. Per unit) Units Stucco repairs required for window replacement LS Drywall - Drywall Patch & Texture - including paint touch up Ea Euclid - City Heights Est - Rev xls

37 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 Euclid Apartments Description Unit Qty Unit of Measure Cost Code Total 2 Drywall Patch & Texture - including paint touch up Ea Drywall repairs at Replaced tub/shower units Ea Ea 9-6XX All flooring, Unit R&R Flooring with All Vinyl - 1 Bedroom 1 Ea R&R Flooring with All Vinyl - Add for 2 Bedroom 1 Ea R&R Flooring with All Vinyl - Add for Bedroom 1 Ea Allow Subfloor prep (equal to units getting flooring) 1.00 Ea Community Building carpet and VCT LS Painting Unit Paint - Complete Unit Ea Unit Paint - K&B only - one bathroom (equals new cabinets) _repaint cabinets 1 Ea. Repaint Building Exterior - Complete (per unit based on unit count) Units Paint exterior, wood trim, louvers, fascia, decks, etc. LS Paint trash enclosures and site iron work Incl Paint site wood fencing Incl Community Building LS Signage Allow New Signage 1 Allow Allow Fire prevention specialties Specialties - mailboxes - Allow Install new mail boxes - unit count plus parcel boxes Ea Appliances 7, Kit Range Ea Kit Range Hood Ea Kit Refrigerator 11 Ea Q Furniture/equipment - office, maint and community spaces - BY OWNER Kit Community Building Range Hood Ea Cabinets - Units Cabinets - baths incl. (Weighted Average) Ea Units Cabinets - Miscellaneous repairs Ea Bath 1 Vanity Cabinet Incl Pwdr Vanity Cabinet Incl Comm Community Building Ea Blinds - All Windows Coverings - Per Unit Ea Comm 2 Windows Coverings Ea Plumbing - 41, Hot Water Heater Ea Hot Water Heater - Service Boiler Ea Bath 1 Lavatory & Faucet Ea Bath 1 Toilet Ea Bath 2 Lavatory & Faucet Ea Bath 2 Toilet Ea Kit Sink and Faucet Ea Kit Garbage Disposal Incl Kit Range Connect & install anti-tip Ea Bath 1 Tub / Shower Surround - Replace Ea Bath 1 R Tub / Shower Surround - Refinish Ea Bath 1 Tub / Shower Valve Ea Bath 2 Tub / Shower Surround - Replace Ea Bath 2 R Tub / Shower Surround - Refinish Ea Bath 2 Tub / Shower Valve Ea Seismic Strap water heater Ea Allow Individual Unit shut-off valves 11 Ea Allow Solar Hot Water System 1 LS Euclid - City Heights Est - Rev xls

38 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 Euclid Apartments Description Unit Qty Unit of Measure Cost Code Total ADA Upcharge for ADA Toilets Ea HVAC 11, Furnaces, PTACs, Wall Heaters, Fan Coils - Weighted Average Ea Furnaces Repairs & servicing - Electric wall heaters Ea Bath 1 Humidistat Exhaust Fan 11 Ea Bath 2 Humidistat Exhaust Fan 1 Ea Allow Duct bath Fans to outside Ea Attic Exhaust Fans Ea Allow Kitchen vent and exhaust systems 11 Ea HERS Testing? Upgrade of HVAC Efficiency Ratings? Electrical 9, LR/Kit Entry, Kitchen, Living, Dining, Hall light fixtures 11 Ea Ea Kit GFCI comp kitchen - replace outlets as needed - no dedicated circuit necces. Ea Bath 1 GFCI (1 per) Ea Bath 2 GFCI (1 per) Ea Bath 1 Vanity Light 11 Ea Bath 2 Vanity Light 1 Ea Misc. electrical - trim, repairs, etc. Ea Repair/replace exterior safety and site light fixtures Fixtures Replace all electric outlets, switches and GFI'S - 1 bedroom units Units Replace all electric outlets, switches and GFI'S - 2 bedroom units Units Replace all electric outlets, switches and GFI'S - bedroom Units Units Replace battery smokes in bdrms - Hardwire Smoke/CO2 in hall - existing wiring 11 Units Allow Install photovoltaic system Allow Low voltage 10, Allow Install Wifi system to all units Allow Allow Install Security camera system - unspecified 1 Allow Rough and Finish Cleanup/Disposal/Recycling 5, Rough Clean, including disposal fees Ea Final Clean 11 Ea Permits - By Owner TOTAL OF LINE ITEM COSTS Sub Totals 174,45.10 Option Items New Door hardware Cabinet knobs Patio Doors only 4 years old Blind repairs - maintenance Replace 1.6 GPF toilets with 1.28 GPF Euclid - City Heights Est - Rev xls

39 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 Harmony Homes Apartments Description Unit Qty Unit of Measure Cost Code Total Demolition & Pest Control 9, Demo cabinets & plumbing Incl. disposal 12 Ea Misc. Exterior Demo LS Tub Showers Ea Hazmat / Mold abatement Units Tent for Termites - No Report LS Termite Spot Treatment - No Report LS Abatement for tub/showers Ea Grading - Grading & Soil Removal AC Paving Repair AC paving including signage & striping SF Seal / Re-stripe Parking Lot 1,200 SF PCC Paving 1, R&R walks 200 SF Miscellaneous repairs, grind, crack fill, etc. LS Domestic Water - Backflow Prevention Valve Cage with Concrete base Ea Storm Drains - Misc. Drainage Improvements LS 2-70 Sewer - Allow Video Inspection, repair, and related site work Allow Under Subfloor or underslab repairs Allow 2-80 Fencing, gates & masonry 1, Trash Enclosure Gates Ea Tubular Steel Fences, including paint LF Tube steel ped gates & Hardware 2 Ea R&R Wood Fencing, incl. paint LF Fencing repairs LS New Trash Enclosure (tube steel w/mesh, 16x5 incl. gate) Ea Site & Street Furnishings 8,0.00 Wall Mount Safety Lighting Ea Allow Play Equipment & surfacing LS Allow Charcoal BBQ, trash receptical & Coal Bin Ea Allow Replace telephone entry system 1 LS Allow Miscellaneous Exterior Security Lighting and electrical LS Repair Telephone entry system LS Repair Drive gate and opener LS Allow Unspecified Site Improvements 1 LS Landscaping 1, Allow Rennovate site landscaping & irrigation 1 LS Allowance subject to approval of design Repairs to Planters LS -00 Concrete - Misc. Foundation repairs LS Misc Metals 10, Replace Stair and/or Balcony Railings 100 LF Repair or Replace Concrete stair treads 8 Ea Rough Carpentry 7, Allow Repair/replace exterior wood trim work, fascia, etc.. 1 LS Allow Structural deck repairs / balcony decks / Floor leveling 1 LS Repair loose and squeaking subfloors approx. 50% of 2nd floor units Units Allow R&R roof sheathing (in 2 sf increments) SF Allow R&R Deck Sheathing (in 2 sf increments) SF Misc. Laundry room upgrades LS Misc. Room/Comm Room/Other Revisiions LS Misc. ADA Upgrades - All Included - DELETED Units Construct water heater sheds - complete Ea Bath subfloor repairs / tub replacements, etc. Ea Finish Carpentry and Hardware 8, Harmony Homes - City Heights Est - Rev xls

40 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 Harmony Homes Apartments Description Unit Qty Unit of Measure Cost Code Total Hot water Closet Door Ea R Hot water Closet Door Ea Ext. Storage Closet Door Ea R Ext. Storage Closet Door Ea Entry Entry Door (includes hardware) Ea Entry R Entry Door Ea Entry Entry Door Frame (includes stucco patch) Ea Entry R Entry Door Frame Ea LR Entry Closet Door Ea LR R Entry Closet Door Ea Entry Broom Closet Door Ea Entry R Broom Closet Door Ea Bed 1 Closet Doors 11 Ea Bed 1 R Closet Doors Ea Bed 2 Closet Doors Ea Bed 2 R Closet Doors Ea Bed Closet Doors Ea Bed R Closet Doors Ea Bed 1 Bedroom Doors 2 Ea Bed 1 R Bedroom Doors Ea Bed 2 Bedroom Doors Ea Bed 2 R Bedroom Doors Ea Bed Bedroom Doors Ea Bed R Bedroom Doors Ea Bath 1 TP Holder and Towel Rack (2) R&R 12 Ea Pwdr TP Holder and Towel Rack (2) R&R Ea Bath 1 Medicine Cabinet Ea Bath 2 Medicine Cabinet Ea Bath 1 Bathroom Door 6 Ea Bath 1 R Bathroom Door Ea Bath 2 Bathroom Door Ea Bath 2 R Bathroom Door Ea Security Screen Door Ea Replace Door Weatherstripping and draft-stopping 12 Units Entry Door Hardware Only Ea Base shoe 12 Ea Countertops-Laminate & Unilav 8, Kit Kitchen Counter - P-lam 12 Ea Bath 1 Bathroom Countertop - Cultured Marble Unilav 12 Ea Bath 2 Bathroom Countertop - Cultured Marble Unilav Ea Com Community center tops - P-lam Ea Insulation 2, Option Add blown-in insulation in attics - (upstairs units only with attics) 6 Units 7-20 Roofing 8,19.00 Allow Misc. roofing repairs & Maintenance Allow Allow Replace Roofing (pending specifications) 1 Allow Deck Coating 6, Refinish/ Replace exterior deck & stairs waterproofing - Per upstairs Unit 6 Ea Refinish exterior deck & stairs waterproofing - Ea Sheet Metal - Gutters and Downspouts LS 8-60 Overhead doors (Garage doors) - Replace Garage Doors Ea Install electric garage door openers, incl. electrical Ea 8-60 Windows 18,28.00 Replace windows in apartment units - Vinyl 2 Ea Replace Sliding Glass Doors - Vinyl Ea Allow Window security bars on all first floor windows 1 LS Mirrors Bath 1 Mirror - Some good, but must be replaced with Vanity & Top 12 Ea Bath 2 Mirror - Some good, but must be replaced with Vanity & Top Ea Lath and Plaster 2,80.00 Allow Exterior plaster repairs required under deck for struct. repairs 1 LS Stucco repairs required for window replacement LS Harmony Homes - City Heights Est - Rev xls

41 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 Harmony Homes Apartments Description Unit Qty Unit of Measure Cost Code Total Drywall 5, Drywall Patch & Texture - including paint touch up 5 Ea 2 Drywall Patch & Texture - including paint touch up 7 Ea Drywall repairs at Replaced tub/shower units Ea Ea 9-6XX All flooring 24, Unit R&R Flooring with All Vinyl - 1 Bedroom 11 Ea R&R Flooring with All Vinyl - Add for 2 Bedroom Ea R&R Flooring with All Vinyl - Add for Bedroom Ea Allow Subfloor prep (equal to units getting flooring) Ea Community Building carpet and VCT LS Painting 2, Unit Paint - Complete Unit 11 Ea Unit Paint - K&B only - one bathroom (equals new cabinets) 1 Ea. Repaint Building Exterior - Complete (per unit based on unit count) Units Paint exterior, wood trim, louvers, fascia, decks, etc. 1 LS Paint trash enclosures and site iron work Incl Paint site wood fencing Incl Community Building LS Signage Allow New Signage 1 Allow Allow Fire prevention specialties Specialties - mailboxes - Allow Install new mail boxes - unit count plus parcel boxes Ea Appliances 15,51.00 Kit Range 12 Ea Kit Range Hood 12 Ea Kit Refrigerator 12 Ea Q Furniture/equipment - office, maint and community spaces - BY OWNER Kit Community Building Range Hood Ea Cabinets 24, Units Cabinets - baths incl. (Weighted Average) 12 Ea Units Cabinets - Miscellaneous repairs Ea Bath 1 Vanity Cabinet Incl Pwdr Vanity Cabinet Incl Comm Community Building Ea Blinds 2, All Windows Coverings - Per Unit 12 Ea Comm 2 Windows Coverings Ea Plumbing - 6,929.2 Hot Water Heater Ea Hot Water Heater - Service Boiler Ea Bath 1 Lavatory & Faucet 12 Ea Bath 1 Toilet 11 Ea Bath 2 Lavatory & Faucet Ea Bath 2 Toilet Ea Kit Sink and Faucet 12 Ea Kit Garbage Disposal 12 Incl Kit Range Connect & install anti-tip 12 Ea Bath 1 Tub / Shower Surround - Replace Ea Bath 1 R Tub / Shower Surround - Refinish 12 Ea Bath 1 Tub / Shower Valve 12 Ea Bath 2 Tub / Shower Surround - Replace Ea Bath 2 R Tub / Shower Surround - Refinish Ea Bath 2 Tub / Shower Valve Ea Harmony Homes - City Heights Est - Rev xls

42 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 Harmony Homes Apartments Description Unit Qty Unit of Measure Cost Code Total Seismic Strap water heater Ea Allow Individual Unit shut-off valves Ea Allow Solar Hot Water System 1 Allow ADA Upcharge for ADA Toilets Ea HVAC 21, Furnaces, PTACs, Wall Heaters, Fan Coils - Weighted Average 5 Ea Furnaces Repairs & servicing - Electric wall heaters 6 Ea Bath 1 Humidistat Exhaust Fan 12 Ea Bath 2 Humidistat Exhaust Fan Ea Allow Duct bath Fans to outside 12 Ea Attic Exhaust Fans Ea Allow Duct range hoods to outside 12 Ea HERS Testing? Upgrade of HVAC Efficiency Ratings? Electrical 10,5.00 LR/Kit Entry, Kitchen, Living, Dining, Hall light fixtures 12 Ea Ea Kit GFCI comp kitchen - replace outlets as needed - no dedicated circuit necces. Ea Bath 1 GFCI (1 per) Ea Bath 2 GFCI (1 per) Ea Bath 1 Vanity Light 12 Incl Bath 2 Vanity Light Ea Misc. electrical - trim, repairs, etc. Ea Repair/replace exterior safety and site light fixtures Fixtures Replace all electric outlets, switches and GFI'S - 1 bedroom units Units Replace all electric outlets, switches and GFI'S - 2 bedroom units Units Replace all electric outlets, switches and GFI'S - bedroom Units Units Replace battery smokes in bdrms - Hardwire Smoke/CO2 in hall - existing wiring 12 Units Allow Install photovoltaic system Allow Low voltage 16, Allow New Intercom entry system 1 Allow Allow Install Security camera system - unspecified 1 Allow Rough and Finish Cleanup/Disposal/Recycling 12, Rough Clean, including disposal fees 12 Ea Final Clean 12 Ea Permits - By Owner TOTAL OF LINE ITEM COSTS Sub Totals 18,77.62 Option Items New Door hardware Cabinet knobs Patio Doors only 4 years old Blind repairs - maintenance Replace 1.6 GPF toilets with 1.28 GPF Fire Extinguisher recharge - Maintenance No Fan Boxes. - PNA calls for 24 ceiling fans - Expensive to wire and retrofit. Harmony Homes - City Heights Est - Rev xls

43 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 San Diego Apartments Unit of Measure Cost Code Total Description Unit Qty Demolition & Pest Control 10, Demo cabinets & plumbing Incl. disposal 1 Ea Misc. Exterior Demo LS Tub Showers Ea Hazmat / Mold abatement Units Tent for Termites - No Report LS Termite Spot Treatment - No Report LS Abatement for tub/showers Ea Grading - Grading & Soil Removal AC Paving Repair AC paving including signage & striping SF Seal / Re-stripe Parking Lot 800 SF PCC Paving - R&R walks SF Miscellaneous repairs, grind, crack fill, etc. LS Domestic Water Backflow Prevention Valve Cage with Concrete base 1 Ea Storm Drains - Misc. Drainage Improvements LS 2-70 Sewer - Allow Video Inspection, repair, and related site work Allow Under Subfloor or underslab repairs Allow 2-80 Fencing, gates & masonry - Trash Enclosure Gates Ea Tubular Steel Fences, including paint LF Tube steel ped gates & Hardware Ea R&R Wood Fencing, incl. paint LF Fencing repairs LS New Trash Enclosure (tube steel w/mesh, 16x5 incl. gate) Ea Site & Street Furnishings 5, Wall Mount Safety Lighting Ea Allow Play Equipment & surfacing LS Allow Charcoal BBQ, trash receptical & Coal Bin Ea Replace telephone entry system 1 LS Allow Miscellaneous Exterior Security Lighting and electrical LS Repair Telephone entry system LS Repair Drive gate and opener LS Allow Unspecified Site Improvements 1 LS Landscaping 2, Allow Rennovate site landscaping & irrigation 1 LS Allowance subject to approval of design Repairs to Planters LS -00 Concrete - Misc. Foundation repairs LS Misc Metals - Replace Stair or Balcony Railings LF Repair or Replace Concrete stair treads Ea Rough Carpentry 5, Allow Repair/replace exterior wood trim work, fascia, etc.. LS Allow Structural deck repairs / balcony decks / Floor leveling LS Repair loose and squeaking subfloors approx. 50% of 2nd floor units Units Allow R&R roof sheathing (in 2 sf increments) SF Allow R&R Deck Sheathing (in 2 sf increments) SF Misc. Laundry room upgrades LS Misc. Room/Comm Room/Other Revisiions LS Misc. ADA Upgrades - All Included 1 Units Construct water heater sheds - complete Ea Bath subfloor repairs / tub replacements, etc. Ea Finish Carpentry and Hardware 8, Hot water Closet Door Ea San Diego Apartments - City Heights Est - Rev xls

44 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 San Diego Apartments Description Unit Qty Unit of Measure Cost Code Total R Hot water Closet Door Ea Ext. Storage Closet Door Ea R Ext. Storage Closet Door Ea Entry Entry Door (includes hardware) Ea Entry R Entry Door 1 Ea Entry Entry Door Frame (includes stucco patch) 1 Ea Entry R Entry Door Frame Ea LR Entry Closet Door Ea LR R Entry Closet Door Ea Entry Broom Closet Door Ea Entry R Broom Closet Door Ea Bed 1 Closet Doors 2 Ea Bed 1 R Closet Doors Ea Bed 2 Closet Doors Ea Bed 2 R Closet Doors Ea Bed Closet Doors Ea Bed R Closet Doors Ea Bed 1 Bedroom Doors 2 Ea Bed 1 R Bedroom Doors Ea Bed 2 Bedroom Doors Ea Bed 2 R Bedroom Doors Ea Bed Bedroom Doors Ea Bed R Bedroom Doors Ea Bath 1 TP Holder and Towel Rack (2) R&R 14 Ea Pwdr TP Holder and Towel Rack (2) R&R Ea Bath 1 Medicine Cabinet 14 Ea Bath 2 Medicine Cabinet Ea Bath 1 Bathroom Door Ea Bath 1 R Bathroom Door Ea Bath 2 Bathroom Door Ea Bath 2 R Bathroom Door Ea Security Screen Door Ea Replace Door Weatherstripping and draft-stopping 16 Units Entry Door Hardware Only Ea Base shoe 14 Ea Countertops-Laminate & Unilav 9,10.50 Kit Kitchen Counter - P-lam 1 Ea Bath 1 Bathroom Countertop - Cultured Marble Unilav 14 Ea Bath 2 Bathroom Countertop - Cultured Marble Unilav Ea Com Community center tops - P-lam Ea Insulation, Option Add blown-in insulation in attics - (upstairs units only with attics) 8 Units 7-20 Roofing - Allow Misc. roofing repairs & Maintenance Allow Allow Replace Roofing (pending specifications) Allow Deck Coating - Refinish/ Replace exterior deck & stairs waterproofing - Per upstairs Unit Ea Refinish exterior deck & stairs waterproofing - Ea Sheet Metal - Gutters and Downspouts LS 8-60 Overhead doors (Garage doors) - Replace Garage Doors Ea Install electric garage door openers, incl. electrical Ea 8-60 Windows 5, Replace windows in apartment units - Vinyl 6 Ea Replace Sliding Glass Doors - Vinyl Ea Window security bars on all first floor windows 9 Ea Mirrors Bath 1 Mirror - Some good, but must be replaced with Vanity & Top 14 Ea Bath 2 Mirror - Some good, but must be replaced with Vanity & Top Ea Lath and Plaster - Allow Exterior plaster repairs required pre-paint - (Allow. Per unit) Units Stucco repairs required for window replacement LS Drywall 7, Drywall Patch & Texture - including paint touch up 2 Ea San Diego Apartments - City Heights Est - Rev xls

45 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 San Diego Apartments Description Unit Qty Unit of Measure Cost Code Total 2 Drywall Patch & Texture - including paint touch up 14 Ea Drywall repairs at Replaced tub/shower units Ea Ea 9-6XX All flooring 29, Unit R&R Flooring with All Vinyl - 1 Bedroom 12 Ea R&R Flooring with All Vinyl - Add for 2 Bedroom Ea R&R Flooring with All Vinyl - Add for Bedroom Ea Allow Subfloor prep (equal to units getting flooring) Ea Community Building carpet and VCT LS Painting 20, Unit Paint - Complete Unit 12 Ea Unit Paint - K&B only - one bathroom (equals new cabinets) Ea. Repaint Building Exterior - Complete (per unit based on unit count) Units Paint exterior, wood trim, louvers, fascia, decks, etc. LS Paint trash enclosures and site iron work Incl Paint site wood fencing Incl Community Building LS Signage Allow New Signage 1 Allow Allow Fire prevention specialties Specialties - mailboxes - Allow Install new mail boxes - unit count plus parcel boxes Ea Appliances 19, Kit Range 14 Ea Kit Range Hood 14 Ea Kit Refrigerator 16 Ea Q Furniture/equipment - office, maint and community spaces - BY OWNER Kit Community Building Range Hood Ea Cabinets 1, Units Cabinets - baths incl. (Weighted Average) 1 Ea Units Cabinets - Miscellaneous repairs Ea Bath 1 Vanity Cabinet 1 Incl Bath 1 Vanity Cabinet - Extra 1 Ea Comm Community Building Ea Blinds - All Windows Coverings - Per Unit Ea Comm 2 Windows Coverings Ea Plumbing - 22,48.86 Hot Water Heater Ea Hot Water Heater - Service Boiler Ea Bath 1 Lavatory & Faucet 14 Ea Bath 1 Toilet 7 Ea Bath 2 Lavatory & Faucet Ea Bath 2 Toilet Ea Kit Sink and Faucet 1 Ea Kit Garbage Disposal 1 Incl Kit Range Connect & install anti-tip 14 Ea Bath 1 Tub / Shower Surround - Replace Ea Bath 1 R Tub / Shower Surround - Refinish 12 Ea Bath 1 Tub / Shower Valve 12 Ea Bath 2 Tub / Shower Surround - Replace Ea Bath 2 R Tub / Shower Surround - Refinish Ea Bath 2 Tub / Shower Valve Ea Seismic Strap water heater Ea Allow Individual Unit shut-off valves Ea Allow Solar Hot Water System - DELETED in new PNA LS San Diego Apartments - City Heights Est - Rev xls

46 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 San Diego Apartments Description Unit Qty Unit of Measure Cost Code Total ADA Upcharge for ADA Toilets 4 Ea HVAC 27,01.00 Furnaces, PTACs, Wall Heaters, Fan Coils - Weighted Average 8 Ea Furnaces Repairs & servicing - Electric wall heaters Ea Bath 1 Humidistat Exhaust Fan 16 Ea Bath 2 Humidistat Exhaust Fan Ea Allow Duct bath Fans to outside 16 Ea Attic Exhaust Fans Ea Ea HERS Testing? Upgrade of HVAC Efficiency Ratings? Electrical 71,0.40 LR/Kit Entry, Kitchen, Living, Dining, Hall light fixtures 16 Ea Ea Kit GFCI comp kitchen - replace outlets as needed - no dedicated circuit necces. 1 Ea Bath 1 GFCI (1 per) 5 Ea Bath 2 GFCI (1 per) Ea Bath 1 Vanity Light 16 Ea Bath 2 Vanity Light Ea Misc. electrical - trim, repairs, etc. Ea Repair/replace exterior safety and site light fixtures Fixtures Replace all electric outlets, switches and GFI'S - 1 bedroom units Units Replace all electric outlets, switches and GFI'S - 2 bedroom units Units Replace all electric outlets, switches and GFI'S - bedroom Units Units Replace battery smokes in bdrms - Hardwire Smoke/CO2 in hall - existing wiring 16 Units Allow Install photovoltaic system 1 Allow Low voltage 14, Allow Fire Alarm System - Repair 1 Allow Allow Install Security camera system - unspecified 1 Allow Rough and Finish Cleanup/Disposal/Recycling 15, Rough Clean, including disposal fees 1 Ea Final Clean 16 Ea Permits - By Owner TOTAL OF LINE ITEM COSTS Sub Totals 14,759.6 Option Items New Door hardware Cabinet knobs Patio Doors only 4 years old Blind repairs - maintenance Replace 1.6 GPF toilets with 1.28 GPF San Diego Apartments - City Heights Est - Rev xls

47 Cost Code Allowance or Qualification Location Designator Sycamore Court Apartments Print Date: 11/4/201 Description Unit Qty Unit of Measure Cost Code Total Demolition & Pest Control - Demo cabinets & plumbing Incl. disposal Ea Misc. Exterior Demo LS Tub Showers Ea 2 Tub Showers Ea Hazmat / Mold abatement Units Tent for Termites - No Report LS Termite Spot Treatment - No Report LS Grading - Grading & Soil Removal AC Paving - Revise AC paving at Community Bldg including handicap signage SF Seal & Re-stripe Parking Lot SF PCC Paving - R&R walks SF Miscellaneous repairs, grind, crack fill, etc. LS Domestic Water - Backflow Prevention Valve Cage with Concrete base Ea Fire Service Storm Drains - Misc. Drainage Improvements LS 2-70 Sewer - Allow Video Inspection, repair, and related site work Allow Under Subfloor or underslab repairs Allow 2-80 Fencing, gates & masonry, Trash Enclosure Gates Ea Tubular Steel Fences, including paint LF Tube steel ped gates & Hardware Ea R&R Wood Fencing, incl. paint LF Fencing repairs LS Allow New Trash Enclosure (tube steel w/mesh, 16x5 incl. gate) 1 Ea Site & Street Furnishings 2, Wall Mount Safety Lighting Ea Allow Play Equipment & surfacing LS Allow Charcoal BBQ, trash receptical & Coal Bin Ea Allow Replace telephone entry system LS Allow Miscellaneous Exterior Security Lighting and electrical LS Repair Telephone entry system LS Repair Drive gate and opener LS Allow Unspecified Site Improvements 1 LS Landscaping 4, Allow Rennovate site landscaping & irrigation 1 LS Allowance subject to approval of design Repairs to Planters LS -00 Concrete - Misc. Foundation repairs LS Misc Metals - Replace Stair or Balcony Railings LF Repair or Replace Concrete stair treads Ea Rough Carpentry - Repair/replace exterior wood trim work, fascia, etc.. LS Allow Structural deck repairs LS Repair loose and squeaking subfloors approx. 25% of 2nd floor units Units Allow R&R roof sheathing (in 2 sf increments) SF Allow R&R Deck Sheathing (in 2 sf increments) SF Misc. Laundry room upgrades LS Misc. Room/Comm Room/Other Revisiions LS Misc. ADA Upgrades - All Included Units Finish Carpentry and Hardware - Hot water Closet Door Ea 2 Hot water Closet Door Ea R Hot water Closet Door Ea Ext. Storage Closet Door Ea 2 Ext. Storage Closet Door Ea R Ext. Storage Closet Door Ea Entry Entry Door (includes hardware) Ea Entry 2 Entry Door (includes hardware) Ea Entry R Entry Door Ea Sycamore Court - City Heights Est - Rev xls

48 Cost Code Allowance or Qualification Location Designator Sycamore Court Apartments Print Date: 11/4/201 Description Unit Qty Entry Entry Door Frame (includes stucco patch) Ea Entry 2 Entry Door Frame (includes stucco patch) Ea Entry R Entry Door Frame Ea LR Entry Closet Door Ea LR 2 Entry Closet Door Ea LR R Entry Closet Door Ea Entry Broom Closet Door Ea Entry 2 Broom Closet Door Ea Entry R Broom Closet Door Ea Bed 1 Closet Doors Ea Bed 1 2 Closet Doors Ea Bed 1 R Closet Doors Ea Bed 2 Closet Doors Ea Bed 2 2 Closet Doors Ea Bed 2 R Closet Doors Ea Bed Closet Doors Ea Bed 2 Closet Doors Ea Bed R Closet Doors Ea Bed 1 Bedroom Doors Ea Bed 1 2 Bedroom Doors Ea Bed 1 R Bedroom Doors Ea Bed 2 Bedroom Doors Ea Bed 2 2 Bedroom Doors Ea Bed 2 R Bedroom Doors Ea Bed Bedroom Doors Ea Bed 2 Bedroom Doors Ea Bed R Bedroom Doors Ea Bath 1 TP Holder and Towel Rack (2) R&R Ea Bath 1 2 TP Holder and Towel Rack (2) R&R Ea Pwdr TP Holder and Towel Rack (2) R&R Ea Pwdr 2 TP Holder and Towel Rack (2) R&R Ea Bath 1 Medicine Cabinet Ea Bath 1 2 Medicine Cabinet Ea Bath 2 Medicine Cabinet Ea Bath 2 2 Medicine Cabinet Ea Bath 1 Bathroom Door Ea Bath 1 2 Bathroom Door Ea Bath 1 R Bathroom Door Ea Bath 2 Bathroom Door Ea Bath 2 2 Bathroom Door Ea Bath 2 R Bathroom Door Ea Security Screen Door Ea Replace Door Weatherstripping and draft-stopping Units Entry Door Hardware Only Ea Unit of Measure Cost Code Total Base shoe Ea Countertops-Laminate & Unilav - Kit Kitchen Counter - P-lam Ea Kit Kitchen Counter - P-lam Ea Bath 1 Bathroom Countertop - Cultured Marble Unilav Ea Bath 1 Bathroom Countertop - Cultured Marble Unilav Ea Bath 2 Bathroom Countertop - Cultured Marble Unilav Ea Bath 2 Bathroom Countertop - Cultured Marble Unilav Ea Com Community center tops - P-lam Ea Insulation - Option Add blown-in insulation in attics - (upstairs units only with attics) Units R Fire stopping Roofing - Allow Misc. roofing repairs & Maintenance Allow Allow Replace Roofing (pending specifications) Allow Deck Coating - Refinish/ Replace exterior deck & stairs waterproofing - Per upstairs Unit Ea 2 Refinish exterior deck & stairs waterproofing - Ea Sheet Metal 6, Gutters and Downspouts 750 LF Splash Blocks 12 Ea 8-60 Overhead doors (Garage doors) - Replace Garage Doors Ea Install electric garage door openers, incl. electrical Ea 8-60 Windows - Replace windows in apartment units - Vinyl Ea Replace Sliding Glass Doors - Vinyl Ea Window security bars on all first floor windows Ea Sycamore Court - City Heights Est - Rev xls

49 Cost Code Allowance or Qualification Location Designator Sycamore Court Apartments Print Date: 11/4/201 Description Unit Qty Unit of Measure Cost Code Total Storefront Mirrors - Bath 1 Mirror - Some good, but must be replaced with Vanity & Top Ea Bath 1 Mirror - Some good, but must be replaced with Vanity & Top Ea Bath 2 Mirror - Some good, but must be replaced with Vanity & Top Ea Bath 2 Mirror - Some good, but must be replaced with Vanity & Top Ea Lath and Plaster - Allow Exterior plaster repairs required pre-paint - (Allow. Per unit) Units Stucco repairs required for window replacement LS Drywall - Drywall Patch & Texture - including paint touch up Ea 2 Drywall Patch & Texture - including paint touch up Ea Drywall repairs at Replaced tub/shower units Ea 9-6XX All flooring - Unit R&R Flooring with All Vinyl - 1 Bedroom Ea Unit 2 R&R Flooring with All Vinyl - 1 Bedroom Ea R&R Flooring with All Vinyl - Add for 2 Bedroom Ea 2 R&R Flooring with All Vinyl - Add for 2 Bedroom Ea R&R Flooring with All Vinyl - Add for Bedroom Ea 2 R&R Flooring with All Vinyl - Add for Bedroom Ea Allow Subfloor repairs & floor prep (equal to units getting flooring) Ea Community Building carpet and VCT LS Painting - Unit Paint - Complete Unit Ea Unit Paint - Complete Unit Ea Unit 2 Paint - K&B only - one bathroom (equals new cabinets) Ea Unit 2 Paint - K&B only - two bathroom (equals new cabinets) Ea. Repaint Building Exterior - Complete (per unit based on unit count) Units Paint exterior, wood trim, louvers, fascia, decks, etc. LS Paint trash enclosures and site iron work Incl 2 Paint sitewood fencing Incl Community Building LS Signage - Allow New Signage Allow Allow Fire prevention specialties Specialties - mailboxes - Allow Install new mail boxes - unit count plus parcel boxes Ea Appliances - Kit Range Ea Kit 2 Range Ea Kit Range Hood Ea Kit 2 Range Hood Ea Kit Refrigerator Ea Kit 2 Refrigerator Ea Q Furniture/equipment - pool, office, maintenance and community spaces - BY OWNER Kit Community Building Range Hood Ea Cabinets - Units Cabinets - baths incl. (Weighted Average) Ea Units 2 Cabinets Ea Bath 1 Vanity Cabinet Incl Bath 1 2 Vanity Cabinet Incl Pwdr Vanity Cabinet Incl Pwdr 2 Vanity Cabinet Incl Comm Community Building Ea Blinds - All Windows Coverings - Per Unit Ea Comm 2 Windows Coverings Ea Plumbing - 59, Hot Water Heater Ea 2 Hot Water Heater Ea Bath 1 Lavatory & Faucet Ea Bath 1 2 Lavatory & Faucet Ea Bath 1 Toilet Ea Bath 1 2 Toilet Ea Bath 2 Lavatory & Faucet Ea Bath 2 2 Lavatory & Faucet Ea Sycamore Court - City Heights Est - Rev xls

50 Cost Code Allowance or Qualification Location Designator Sycamore Court Apartments Print Date: 11/4/201 Description Unit Qty Unit of Measure Cost Code Total Bath 2 Toilet Ea Bath 2 2 Toilet Ea Kit Sink and Faucet Ea Kit 2 Sink and Faucet Ea Kit Garbage Disposal Incl Kit 2 Garbage Disposal Incl Kit Range Connect & install anti-tip Ea Kit 2 Range Connect & install anti-tip Ea Bath 1 Tub / Shower Surround Ea Bath 1 2 Tub / Shower Surround Ea Bath 1 R Tub / Shower Surround Ea Bath 1 Tub / Shower Valve Ea Bath 1 2 Tub / Shower Valve Ea Bath 1 R Tub / Shower Valve Ea Allow Individual Unit shut-off valves Ea Allow Solar Hot Water System 1 LS ADA Upcharge for ADA Toilets Ea HVAC - Furnaces, PTACs, Wall Heaters, Fan Coils - Weighted Average Ea 2 Furnaces Repairs & servicing Ea Bath 1 Humidistat Exhaust Fan Ea Bath 1 2 Humidistat Exhaust Fan Ea Bath 2 Humidistat Exhaust Fan Ea Bath 2 2 Humidistat Exhaust Fan Ea Allow Duct bath Fans to outside Ea Ea HERS Testing? Upgrade of HVAC Efficiency Ratings? Electrical - LR/Kit Entry, Kitchen, Living, Dining, Hall Ea Ea Kit GFCI comp kitchen - replace outlets as needed - no dedicated circuit necces. Ea Kit 2 GFCI comp kitchen - replace outlets as needed - no dedicated circuit necces. Ea Bath 1 GFCI (1 per) Ea Bath 1 2 GFCI (1 per) Ea Bath 2 GFCI (1 per) Ea Bath 2 2 GFCI (1 per) Ea Ea Bath 1 Vanity Light Ea Bath 1 2 Vanity Light Ea Bath 2 Vanity Light Ea Bath 2 2 Vanity Light Ea Ea Ea Repair/replace exterior safety and site light fixtures Fixtures Replace all electric outlets, switches and GFI'S - 1 bedroom units Units Replace all electric outlets, switches and GFI'S - 2 bedroom units Units Replace all electric outlets, switches and GFI'S - bedroom Units Units Replace battery smokes in bdrms - Hardwire Smoke/CO2 in hall - existing wiring Units Allow Install photovoltaic system - Current System not functioning Allow Low voltage 10, Allow Install Wifi system to all units Allow Allow Install Security camera system - unspecified 1 Allow Rough and Finish Cleanup/Disposal/Recycling - Rough Clean, including disposal fees Ea Final Clean Ea Permits - TOTAL OF LINE ITEM COSTS Sub Totals 85, Sycamore Court - City Heights Est - Rev xls

51 Cost Code Allowance or Qualificatio Location Designator Print Date: 11/4/201 Teralta Court Apartments Description Unit Qty Unit of Measure Cost Code Total Demolition & Pest Control 1,68.50 Demo cabinets & plumbing Incl. disposal Ea Misc. Exterior Demo 1 LS Tub Showers Ea Hazmat / Mold abatement Units Tent for Termites - No Report LS Termite Spot Treatment - No Report 1 LS Abatement for tub/showers Ea Grading - Grading & Soil Removal AC Paving Repair AC paving including signage & striping SF Seal / Re-stripe Parking Lot 800 SF PCC Paving 1, R&R walks SF Allow Miscellaneous repairs, grind, crack fill, etc. 1 LS Domestic Water 1,09.00 Backflow Prevention Valve Cage with Concrete base 2 Ea Storm Drains - Misc. Drainage Improvements LS 2-70 Sewer - Allow Video Inspection, repair, and related site work Allow Under Subfloor or underslab repairs Allow 2-80 Fencing, gates & masonry Trash Enclosure Gates Ea Tubular Steel Fences, including paint LF Tube steel ped gates & Hardware 1 Ea R&R Wood Fencing, incl. paint LF Fencing repairs LS New Trash Enclosure (tube steel w/mesh, 16x5 incl. gate) Ea Site & Street Furnishings 6, Wall Mount Safety Lighting Ea Allow Play Equipment & surfacing LS Allow Charcoal BBQ, trash receptical & Coal Bin Ea Allow Replace telephone entry system 1 LS Allow Miscellaneous Exterior Security Lighting and electrical LS Repair Telephone entry system 1 LS Repair Drive gate and opener LS Allow Unspecified Site Improvements 1 LS Landscaping - Allow Rennovate site landscaping & irrigation LS Allowance subject to approval of design Repairs to Planters LS -00 Concrete - Misc. Foundation repairs LS Misc Metals - Replace Stair or Balcony Railings LF Repair or Replace Concrete stair treads Ea Rough Carpentry, Allow Repair/replace exterior wood trim work, fascia, etc.. - INCREASED 1 LS Allow Structural deck repairs / balcony decks / Floor leveling LS Repair loose and squeaking subfloors approx. 50% of 2nd floor units Units Allow R&R roof sheathing (in 2 sf increments) SF Allow R&R Deck Sheathing (in 2 sf increments) SF Misc. Laundry room upgrades LS Misc. Room/Comm Room/Other Revisiions LS Misc. ADA Upgrades - All Included - DELETED in new PNA Units Construct water heater sheds - complete Ea Bath subfloor repairs / tub replacements, etc. Ea Finish Carpentry and Hardware 5, Hot water Closet Door Ea R Hot water Closet Door Ea Ext. Storage Closet Door 2 Ea Teralta Court - City Heights Est - Rev xls

52 Cost Code Allowance or Qualificatio Location Designator Print Date: 11/4/201 Teralta Court Apartments Description Unit Qty Unit of Measure Cost Code Total R Ext. Storage Closet Door Ea Entry Entry Door (includes hardware) Ea Entry R Entry Door Ea Entry Entry Door Frame (includes stucco patch) Ea Entry R Entry Door Frame Ea LR Entry Closet Door 1 Ea LR R Entry Closet Door Ea Entry Broom Closet Door Ea Entry R Broom Closet Door Ea Bed 1 Closet Doors 4 Ea Bed 1 R Closet Doors Ea Bed 2 Closet Doors 2 Ea Bed 2 R Closet Doors Ea Bed Closet Doors Ea Bed R Closet Doors Ea Bed 1 Bedroom Doors Ea Bed 1 R Bedroom Doors Ea Bed 2 Bedroom Doors Ea Bed 2 R Bedroom Doors Ea Bed Bedroom Doors Ea Bed R Bedroom Doors Ea Bath 1 TP Holder and Towel Rack (2) R&R Ea Pwdr TP Holder and Towel Rack (2) R&R Ea Bath 1 Medicine Cabinet Ea Bath 2 Medicine Cabinet Ea Bath 1 Bathroom Door Ea Bath 1 R Bathroom Door Ea Bath 2 Bathroom Door Ea Bath 2 R Bathroom Door Ea Security Screen Door Ea Replace Door Weatherstripping and draft-stopping 1 Units Entry Door Hardware Only Ea Base shoe Ea Countertops-Laminate & Unilav - Kit Kitchen Counter - P-lam Ea Bath 1 Bathroom Countertop - Cultured Marble Unilav Ea Bath 2 Bathroom Countertop - Cultured Marble Unilav Ea Com Community center tops - P-lam Ea Insulation,2.00 Option Add blown-in insulation in attics - (upstairs units only with attics) 7 Units 7-20 Roofing - Allow Misc. roofing repairs & Maintenance Allow Allow Replace Roofing (pending specifications) Allow Deck Coating Refinish/ Replace exterior deck & stairs waterproofing - Per upstairs Unit Ea Allow Refinish exterior deck & stairs waterproofing - 1 Ea Sheet Metal - Gutters and Downspouts LS 8-60 Overhead doors (Garage doors) 8, Replace Garage Doors 8 Ea Install electric garage door openers, incl. electrical 8 Ea 8-60 Windows 8, Replace windows in apartment units - Vinyl Ea Replace Sliding Glass Doors - Vinyl Ea Window security bars on all first floor windows 25 Ea Mirrors - Bath 1 Mirror - Some good, but must be replaced with Vanity & Top Ea Bath 2 Mirror - Some good, but must be replaced with Vanity & Top Ea Lath and Plaster - Allow Exterior plaster repairs required pre-paint - (Allow. Per unit) Units Stucco repairs required for window replacement LS Drywall Drywall Patch & Texture - including paint touch up Ea 2 Drywall Patch & Texture - including paint touch up 1 Ea Drywall repairs at Replaced tub/shower units Ea Ea 9-6XX All flooring 19,87.00 Unit R&R Flooring with All Vinyl - 1 Bedroom 7 Ea Teralta Court - City Heights Est - Rev xls

53 Cost Code Allowance or Qualificatio Location Designator Print Date: 11/4/201 Teralta Court Apartments Description Unit Qty Unit of Measure Cost Code Total R&R Flooring with All Vinyl - Add for 2 Bedroom Ea R&R Flooring with All Vinyl - Add for Bedroom 1 Ea Allow Subfloor prep (equal to units getting flooring) 7.00 Ea Community Building carpet and VCT LS Painting 1, Unit Paint - Complete Unit Ea Unit Paint - K&B only - one bathroom (equals new cabinets) 1 Ea. Repaint Building Exterior - Complete (per unit based on unit count) Units Paint exterior, wood trim, louvers, fascia, decks, etc. 1 LS Paint trash enclosures and site iron work Incl Paint site wood fencing Incl Community Building LS Signage Allow New Signage 1 Allow Allow Fire prevention specialties Specialties - mailboxes - Allow Install new mail boxes - unit count plus parcel boxes Ea Appliances 8, Kit Range Ea Kit Range Hood Ea Kit Refrigerator 12 Ea Q Furniture/equipment - office, maint and community spaces - BY OWNER Kit Community Building Range Hood Ea Cabinets Units Cabinets - baths incl. (Weighted Average) Ea Units Cabinets - Miscellaneous repairs 2 Ea Bath 1 Vanity Cabinet Incl Pwdr Vanity Cabinet Incl Comm Community Building Ea Blinds - All Windows Coverings - Per Unit Ea Comm 2 Windows Coverings Ea Plumbing - 46,96.70 Hot Water Heater Ea Hot Water Heater - Service Boiler Ea Bath 1 Lavatory & Faucet Ea Bath 1 Toilet Ea Bath 2 Lavatory & Faucet Ea Bath 2 Toilet Ea Kit Sink and Faucet 1 Ea Kit Garbage Disposal 1 Incl Kit Range Connect & install anti-tip Ea Bath 1 Tub / Shower Surround - Replace Ea Bath 1 R Tub / Shower Surround - Refinish 1 Ea Bath 1 Tub / Shower Valve Ea Bath 2 Tub / Shower Surround - Replace Ea Bath 2 R Tub / Shower Surround - Refinish 1 Ea Bath 2 Tub / Shower Valve Ea Seismic Strap water heater Ea Allow Individual Unit shut-off valves Ea Allow Solar Hot Water System - INCREASED 1 LS ADA Upcharge for ADA Toilets Ea HVAC 1,28.00 Furnaces, PTACs, Wall Heaters, Fan Coils - Weighted Average 4 Ea Furnaces Repairs & servicing - Electric wall heaters 4 Ea Bath 1 Humidistat Exhaust Fan 1 Ea Bath 2 Humidistat Exhaust Fan Ea Allow Duct bath Fans to outside Ea Attic Exhaust Fans Ea Teralta Court - City Heights Est - Rev xls

54 Cost Code Allowance or Qualificatio Location Designator Print Date: 11/4/201 Teralta Court Apartments Description Unit Qty Unit of Measure Cost Code Total Ea HERS Testing? Upgrade of HVAC Efficiency Ratings? Electrical 11,626.0 LR/Kit Entry, Kitchen, Living, Dining, Hall light fixtures 1 Ea Ea Kit GFCI comp kitchen - replace outlets as needed - no dedicated circuit necces. Ea Bath 1 GFCI (1 per) Ea Bath 2 GFCI (1 per) Ea Bath 1 Vanity Light 1 Ea Bath 2 Vanity Light Ea Misc. electrical - trim, repairs, etc. Ea Repair/replace exterior safety and site light fixtures Fixtures Replace all electric outlets, switches and GFI'S - 1 bedroom units Units Replace all electric outlets, switches and GFI'S - 2 bedroom units Units Replace all electric outlets, switches and GFI'S - bedroom Units Units Replace battery smokes in bdrms - Hardwire Smoke/CO2 in hall - existing wiring 1 Units Allow Install photovoltaic system Allow Low voltage 10, Allow Install Wifi system to all units Allow Allow Install Security camera system - unspecified 1 Allow Rough and Finish Cleanup/Disposal/Recycling 7,75.00 Rough Clean, including disposal fees 1 Ea Final Clean 1 Ea Permits - By Owner TOTAL OF LINE ITEM COSTS Sub Totals 161, Option Items New Door hardware Cabinet knobs Patio Doors only 4 years old Blind repairs - maintenance Replace 1.6 GPF toilets with 1.28 GPF Fire Exting. Recharge - maintenance Teralta Court - City Heights Est - Rev xls

55 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 Village View Unit of Measure Cost Code Total Description Unit Qty Demolition & Pest Control 27, Demo cabinets & plumbing Incl. disposal 19 Ea Misc. Exterior Demo LS Tub Showers Ea Allow Hazmat / Mold abatement 1 LS Tent for Termites - No Report LS Termite Spot Treatment - No Report 4 LS Abatement for tub/showers Ea Grading - Grading & Soil Removal AC Paving - Repair AC paving including signage & striping SF Seal / Re-stripe Parking Lot SF PCC Paving 2, R&R walks SF Allow Miscellaneous repairs, grind, crack fill, etc. 1 LS Domestic Water 2, Backflow Prevention Valve Cage with Concrete base 4 Ea Storm Drains - Misc. Drainage Improvements LS 2-70 Sewer - Allow Video Inspection, repair, and related site work Allow Under Subfloor or underslab repairs Allow 2-80 Fencing, gates & masonry 9, Trash Enclosure Gates & Trellis 2 Ea Tubular Steel Fences, including paint LF Tube steel ped gates & Hardware Ea R&R Wood Fencing, incl. paint 120 LF Fencing repairs LS New Trash Enclosure (tube steel w/mesh, 16x5 incl. gate) Ea Site & Street Furnishings 7,75.00 Wall Mount Safety Lighting Ea Allow Play Equipment & surfacing LS Allow Charcoal BBQ, trash receptical & Coal Bin Ea Allow Replace telephone entry system LS Allow Miscellaneous Exterior Security Lighting and electrical 1 LS Repair Telephone entry system LS Repair Drive gate and opener LS Allow Unspecified Site Improvements 1 LS Landscaping 6, Allow Rennovate site landscaping & irrigation - Increased 1 LS Allowance subject to approval of design Repairs to Planters LS -00 Concrete - Misc. Foundation repairs LS Misc Metals - Replace Stair or Balcony Railings LF Repair or Replace Concrete stair treads Ea Rough Carpentry 4, Allow Repair/replace exterior wood trim work, fascia, etc.. LS Allow Structural deck repairs / balcony decks / Floor leveling LS Repair loose and squeaking subfloors approx. 50% of 2nd floor units Units Allow R&R roof sheathing (in 2 sf increments) SF Allow R&R Deck Sheathing (in 2 sf increments) 1,600 SF Misc. Laundry room upgrades 2 Ea Allow Misc. Room/Comm Room/Other Revisions 1 LS Misc. ADA Upgrades - All Included 1 Units Construct water heater sheds - complete Ea Bath subfloor repairs / tub replacements, etc. Ea Finish Carpentry and Hardware 17, Hot water Closet Door Ea R Hot water Closet Door Ea Village View - City Heights Est - Rev xls

56 Print Date: 11/4/201 Village View Ext. Storage Closet Door Ea R Ext. Storage Closet Door Ea Entry Entry Door (includes hardware) 2 Ea Entry R Entry Door Ea Entry Entry Door Frame (includes stucco patch) Ea Entry R Entry Door Frame Ea LR Entry Closet Door Ea LR R Entry Closet Door Ea Entry Broom Closet Door Ea Entry R Broom Closet Door Ea Bed 1 Closet Doors 11 Ea Bed 1 R Closet Doors Ea Bed 2 Closet Doors 21 Ea Bed 2 R Closet Doors Ea Bed Closet Doors 6 Ea Bed R Closet Doors Ea Bed 1 Bedroom Doors 7 Ea Bed 1 R Bedroom Doors Ea Bed 2 Bedroom Doors 5 Ea Bed 2 R Bedroom Doors Ea Bed Bedroom Doors 4 Ea Bed R Bedroom Doors Ea Bath 1 TP Holder and Towel Rack (2) R&R 19 Ea Pwdr TP Holder and Towel Rack (2) R&R 6 Ea Bath 1 Medicine Cabinet 19 Ea Bath 2 Medicine Cabinet 6 Ea Bath 1 Bathroom Door 15 Ea Bath 1 R Bathroom Door Ea Bath 2 Bathroom Door 4 Ea Bath 2 R Bathroom Door Ea Security Screen Door Ea Replace Door Weatherstripping and draft-stopping Units Entry Door Hardware Only Ea Base shoe 19 Ea Countertops-Laminate & Unilav 14, Kit Kitchen Counter - P-lam 19 Ea Bath 1 Bathroom Countertop - Cultured Marble Unilav 19 Ea Bath 2 Bathroom Countertop - Cultured Marble Unilav 6 Ea Com Community center tops - P-lam Ea Insulation - Option Add blown-in insulation in attics - (upstairs units only with attics) - flat roof Units 7-20 Roofing 11, Allow Misc. roofing repairs & Maintenance 1 LS Allow Replace Roofing (pending specifications) Allow Deck Coating - Refinish/ Replace exterior deck & stairs waterproofing - Per upstairs Unit Ea Refinish exterior deck & stairs waterproofing - Ea Sheet Metal - Gutters and Downspouts LS 8-60 Overhead doors (Garage doors) 2, Replace Garage Doors / or Repair - For Maintenance 2 Ea Install electric garage door openers, incl. electrical Ea 8-60 Windows - Replace windows in apartment units - Vinyl Ea Replace Sliding Glass Doors - Vinyl Ea Window security bars on all first floor windows Ea Mirrors 1, Bath 1 Mirror - Some good, but must be replaced with Vanity & Top 19 Ea Bath 2 Mirror - Some good, but must be replaced with Vanity & Top 6 Ea Lath and Plaster - Allow Exterior plaster repairs required pre-paint - (Allow. Per unit) Units Stucco repairs required for window replacement LS Drywall 11, Drywall Patch & Texture - including paint touch up 14 Ea 2 Drywall Patch & Texture - including paint touch up 8 Ea Drywall repairs at Replaced tub/shower units Ea Ea 9-6XX All flooring 62, Unit R&R Flooring with All Vinyl - 1 Bedroom 21 Ea R&R Flooring with All Vinyl - Add for 2 Bedroom 1 Ea Village View - City Heights Est - Rev xls

57 Print Date: 11/4/201 Village View R&R Flooring with All Vinyl - Add for Bedroom 4 Ea Allow Subfloor prep (equal to units getting flooring) Ea Community Building carpet and VCT LS Painting 27, Unit Paint - Complete Unit 14 Ea Unit Paint - K&B only - one bathroom (equals new cabinets) 10 Ea. Repaint Building Exterior - Complete (per unit based on unit count) Units Paint exterior, wood trim, louvers, fascia, decks, etc. LS Paint trash enclosures and site iron work Incl Paint site wood fencing Incl Community Building LS Signage 8,0.00 Allow New Signage 1 Allow Allow Directory 1 Allow Fire prevention specialties Specialties - mailboxes - Allow Install new mail boxes - unit count plus parcel boxes Ea Appliances 28, Kit Range 1 Ea Kit Range Hood 19 Ea Kit Refrigerator 0 Ea Q Furniture/equipment - office, maint and community spaces - BY OWNER Kit Community Building Range Hood Ea Cabinets 45, Units Cabinets - baths incl. (Weighted Average) 19 Ea Units Cabinets - Miscellaneous repairs Ea Bath 1 Vanity Cabinet 19 Incl Pwdr Vanity Cabinet 6 Incl Comm Community Building Ea Blinds 8, All Windows Coverings - Per Unit 0 Ea Comm 2 Windows Coverings Ea Plumbing - 145, Hot Water Heater Ea Hot Water Heater - Service Boiler & Recirc Pump 1 Ea Bath 1 Lavatory & Faucet 19 Ea Bath 1 Toilet 10 Ea Bath 2 Lavatory & Faucet 1 Ea Bath 2 Toilet 2 Ea Kit Sink and Faucet 19 Ea Kit Garbage Disposal 19 Incl Kit Range Connect & install anti-tip 1 Ea Bath 1 Tub / Shower Surround - Replace Ea Bath 1 R Tub / Shower Surround - Refinish 21 Ea Bath 1 Tub / Shower Valve 18 Ea Bath 2 Tub / Shower Surround - Replace Ea Bath 2 R Tub / Shower Surround - Refinish 5 Ea Bath 2 Tub / Shower Valve 4 Ea Seismic Strap water heater Ea Allow Individual Unit shut-off valves Ea Allow Solar Hot Water System - Service 1 LS ADA Upcharge for ADA Toilets Ea HVAC 64, Furnaces, PTACs, Wall Heaters, Fan Coils - Weighted Average 18 Ea Furnaces Repairs & servicing - PTACs - replace sleeves, etc. 5 Ea Bath 1 Humidistat Exhaust Fan 0 Ea Bath 2 Humidistat Exhaust Fan 6 Ea Allow Duct bath Fans to outside 0 Ea Attic Exhaust Fans Ea Office HVAC 2 Ea HERS Testing? Upgrade of HVAC Efficiency Ratings? Electrical 88,45.60 LR/Kit Entry, Kitchen, Living, Dining, Hall light fixtures 0 Ea Village View - City Heights Est - Rev xls

58 Print Date: 11/4/201 Village View Ea Kit GFCI comp kitchen - replace outlets as needed - no dedicated circuit necces. Ea Bath 1 GFCI (1 per) Ea Bath 2 GFCI (1 per) Ea Bath 1 Vanity Light 0 Ea Bath 2 Vanity Light 6 Ea Misc. electrical - trim, repairs, etc. 0 Ea Repair/replace exterior safety and site light fixtures Fixtures Replace all electric outlets, switches and GFI'S - 1 bedroom units Units Replace all electric outlets, switches and GFI'S - 2 bedroom units Units Replace all electric outlets, switches and GFI'S - bedroom Units Units Replace battery smokes in bdrms - Hardwire Smoke/CO2 in hall - existing wiring 0 Units Allow Install photovoltaic system 2 Allow Low voltage 28, Allow Install Wifi system to all units 1 Allow Allow Install Security camera system - unspecified 24 camera system - Reduced 1 Allow Rough and Finish Cleanup/Disposal/Recycling 28, Rough Clean, including disposal fees 0 Ea Final Clean 0 Ea Permits - By Owner TOTAL OF LINE ITEM COSTS Sub Totals 687, Option Items New Door hardware Cabinet knobs Patio Doors only 4 years old Blind repairs or Replace - maintenance 0 Replace 1.6 GPF toilets with 1.28 GPF Village View - City Heights Est - Rev xls

59 Cost Code Allowance or Qualification Location Designator Print Date: 11/4/201 West View Apartments Unit of Measure Cost Code Total Description Unit Qty Demolition & Pest Control 7,97.00 Demo cabinets & plumbing Incl. disposal 6 Ea Misc. Exterior Demo 1 LS Tub Showers Ea Hazmat / Mold abatement Units Tent for Termites - No Report LS Termite Spot Treatment - No Report 1 LS Abatement for tub/showers Ea Grading - Grading & Soil Removal AC Paving Repair AC paving including signage & striping SF Seal / Re-stripe Parking Lot 800 SF PCC Paving R&R walks SF Miscellaneous repairs, grind, crack fill, etc. 1 LS Domestic Water Backflow Prevention Valve Cage with Concrete base 1 Ea Storm Drains - Misc. Drainage Improvements LS 2-70 Sewer 2, Allow Video Inspection, repair, and related site work 1 Allow Under Subfloor or underslab repairs Allow 2-80 Fencing, gates & masonry 5, Allow Trash Enclosure Gates & Trellis - INCREASED to 2 1 LS Tubular Steel Fences, including paint LF Tube steel ped gates & Hardware 2 Ea R&R Wood Fencing, incl. paint LF Fencing repairs LS New Trash Enclosure (tube steel w/mesh, 16x5 incl. gate) Ea Site & Street Furnishings 1, Wall Mount Safety Lighting Ea Allow Play Equipment & surfacing LS Allow Charcoal BBQ, trash receptical & Coal Bin Ea Allow Replace telephone entry system LS Allow Miscellaneous Exterior Security Lighting and electrical LS Repair Telephone entry system LS Repair Driveway gate - DELETED LS Allow Unspecified Site Improvements 1 LS Landscaping, Allow Rennovate site landscaping & irrigation - INCREASED 1 LS Allowance subject to approval of design Repairs to Planters 1 LS -00 Concrete - Misc. Foundation repairs LS Misc Metals - Replace Stair or Balcony Railings LF Repair or Replace Concrete stair treads Ea Rough Carpentry 4, Allow Repair/replace exterior wood trim work, fascia, etc.. 1 LS Allow Structural deck repairs / balcony decks / Floor leveling LS Repair loose and squeaking subfloors approx. 50% of 2nd floor units Units Allow R&R roof sheathing (in 2 sf increments) SF Allow R&R Deck Sheathing (in 2 sf increments) SF Misc. Laundry room upgrades 1 LS Misc. Room/Comm Room/Other Revisiions LS Misc. ADA Upgrades - All Included Units Construct water heater sheds - complete Ea Bath subfloor repairs / tub replacements, etc. Ea Finish Carpentry and Hardware 8,47.10 Hot water Closet Door Ea R Hot water Closet Door Ea Ext. Storage Closet Door 2 Ea West View Apartments - City Heights Est - Rev xls

60 Print Date: 11/4/201 West View Apartments R Ext. Storage Closet Door Ea Entry Entry Door (includes hardware) Ea Entry R Entry Door Ea Entry Entry Door Frame (includes stucco patch) Ea Entry R Entry Door Frame Ea LR Entry Closet Door Ea LR R Entry Closet Door Ea Entry Broom Closet Door Ea Entry R Broom Closet Door Ea Bed 1 Closet Doors 6 Ea Bed 1 R Closet Doors Ea Bed 2 Closet Doors 5 Ea Bed 2 R Closet Doors Ea Bed Closet Doors Ea Bed R Closet Doors Ea Bed 1 Bedroom Doors 6 Ea Bed 1 R Bedroom Doors Ea Bed 2 Bedroom Doors 5 Ea Bed 2 R Bedroom Doors Ea Bed Bedroom Doors Ea Bed R Bedroom Doors 6 Ea Bath 1 TP Holder and Towel Rack (2) R&R Ea Pwdr TP Holder and Towel Rack (2) R&R Ea Bath 1 Medicine Cabinet 6 Ea Bath 2 Medicine Cabinet Ea Bath 1 Bathroom Door 6 Ea Bath 1 R Bathroom Door Ea Bath 2 Bathroom Door Ea Bath 2 R Bathroom Door Ea Security Screen Door Ea Replace Door Weatherstripping and draft-stopping 6 Units New Door Hardware Units Base shoe 6 Ea Countertops-Laminate & Unilav 4, Kit Kitchen Counter - P-lam 6 Ea Bath 1 Bathroom Countertop - Cultured Marble Unilav 6 Ea Bath 2 Bathroom Countertop - Cultured Marble Unilav Ea Com Community center tops - P-lam Ea Insulation - Option Add blown-in insulation in attics - (upstairs units only with attics) Units 7-20 Roofing 12, Allow Misc. roofing repairs & Maintenance Allow Allow Replace Roofing (pending specifications) 1 Allow Deck Coating - Refinish/ Replace exterior deck & stairs waterproofing - Per upstairs Unit Ea Refinish exterior deck & stairs waterproofing - Ea Sheet Metal Gutters and Downspouts 1 LS 8-60 Overhead doors (Garage doors) 1, Replace Garage Doors 2 Ea Install electric garage door openers, incl. electrical 2 Ea 8-60 Windows 16, Replace windows in apartment units - Vinyl 28 Ea Replace Sliding Glass Doors - Vinyl Ea Window security bars on all first floor windows Ea Mirrors Bath 1 Mirror - Some good, but must be replaced with Vanity & Top 6 Ea Bath 2 Mirror - Some good, but must be replaced with Vanity & Top Ea Lath and Plaster - Allow Exterior plaster repairs required pre-paint - (Allow. Per unit) Units Stucco repairs required for window replacement LS Drywall 2, Drywall Patch & Texture - including paint touch up 1 Ea 2 Drywall Patch & Texture - including paint touch up 5 Ea Drywall repairs at Replaced tub/shower units Ea Ea 9-6XX All flooring 17, Unit R&R Flooring with All Vinyl - 1 Bedroom 6 Ea R&R Flooring with All Vinyl - Add for 2 Bedroom 5 Ea R&R Flooring with All Vinyl - Add for Bedroom Ea West View Apartments - City Heights Est - Rev xls

61 Print Date: 11/4/201 West View Apartments Allow Subfloor prep (equal to units getting flooring) 6.00 Ea Community Building carpet and VCT LS Painting 11, Unit Paint - Complete Unit 6 Ea Unit Paint - K&B only - one bathroom (equals new cabinets) Ea. Repaint Building Exterior - Complete (per unit based on unit count) Units Paint exterior, wood trim, louvers, fascia, decks, etc. 1 LS Paint trash enclosures and site iron work Incl Paint site wood fencing Incl Community Building LS Signage - Allow New Signage Allow Allow Fire prevention specialties Specialties - mailboxes - Allow Install new mail boxes - unit count plus parcel boxes Ea Appliances 6, Kit Range Ea Kit Range Hood 6 Ea Kit Refrigerator 6 Ea Q Furniture/equipment - office, maint and community spaces - BY OWNER Kit Community Building Range Hood Ea Cabinets 14, Units Cabinets - baths incl. (Weighted Average) 6 Ea Units Cabinets - Miscellaneous repairs Ea Bath 1 Vanity Cabinet 6 Incl Pwdr Vanity Cabinet Incl Comm Community Building Ea Blinds 1, All Windows Coverings - Per Unit 28 Ea Comm 2 Windows Coverings Ea Plumbing - 0, Hot Water Heater Ea Hot Water Heater - Service Boiler Ea Bath 1 Lavatory & Faucet 6 Ea Bath 1 Toilet Ea Bath 2 Lavatory & Faucet Ea Bath 2 Toilet Ea Kit Sink and Faucet 6 Ea Kit Garbage Disposal 6 Incl Kit Range Connect & install anti-tip Ea Bath 1 Tub / Shower Surround - Replace Ea Bath 1 R Tub / Shower Surround - Refinish 6 Ea Bath 1 Tub / Shower Valve 6 Ea Bath 2 Tub / Shower Surround - Replace Ea Bath 2 R Tub / Shower Surround - Refinish Ea Bath 2 Tub / Shower Valve Ea Seismic Strap water heater Ea Allow Individual Unit shut-off valves Ea Allow Solar Hot Water System 1 LS ADA Upcharge for ADA Toilets Ea HVAC 6, Furnaces, PTACs, Wall Heaters, Fan Coils - Weighted Average Ea Furnaces Repairs & servicing - Gas Wall Furnaces 6 Ea Bath 1 Humidistat Exhaust Fan 6 Ea Bath 2 Humidistat Exhaust Fan Ea Allow Duct bath Fans to outside 6 Ea Attic Exhaust Fans Ea Ea HERS Testing? Upgrade of HVAC Efficiency Ratings? Electrical 5, LR/Kit Entry, Kitchen, Living, Dining, Hall light fixtures 6 Ea Ea Kit GFCI comp kitchen - replace outlets as needed - no dedicated circuit necces. Ea Bath 1 GFCI (1 per) Ea West View Apartments - City Heights Est - Rev xls

62 Print Date: 11/4/201 West View Apartments Bath 2 GFCI (1 per) Ea Bath 1 Vanity Light 6 Ea Bath 2 Vanity Light Ea Misc. electrical - trim, repairs, etc. 6 Ea Repair/replace exterior safety and site light fixtures Fixtures Replace all electric outlets, switches and GFI'S - 1 bedroom units Units Replace all electric outlets, switches and GFI'S - 2 bedroom units Units Replace all electric outlets, switches and GFI'S - bedroom Units Units Replace battery smokes in bdrms - Hardwire Smoke/CO2 in hall - existing wiring 6 Units Allow Install photovoltaic system Allow Low voltage 2, Allow Install Wifi system to all units Allow Allow Install Security camera system - unspecified 1 Allow Rough and Finish Cleanup/Disposal/Recycling 6,78.00 Rough Clean, including disposal fees 6 Ea Final Clean 6 Ea Permits - By Owner TOTAL OF LINE ITEM COSTS Sub Totals 176, Option Items New Door hardware Cabinet knobs Patio Doors only 4 years old Blind repairs - maintenance Replace 1.6 GPF toilets with 1.28 GPF West View Apartments - City Heights Est - Rev xls

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139 DEVELOPERS/CONSULTANTS/SELLERS/CONTRACTORS/ ENTITY SEEKING GRANT/BORROWERS (Collectively referred to as "CONTRACTOR" herein) STATEMENT FOR PUBLIC DISCLOSURE 1. Name of CONTRACTOR: Wakeland Housing & Development Corporation 2. Address and Zip Code: 120 Columbia Street, Suite 950, San Diego, CA, Telephone Number: Name of Principal Contact for CONTRACTOR: Mr. Kenneth Sauder, President & CEO 5. Federal Identification Number or Social Security Number of CONTRACTOR: If the CONTRACTOR is not an individual doing business under his ow n name, the CONTRACTOR has the status indicated below and is organized or operating under the law s of California as: A corporation (Attach Articles of Incorporation) X A nonprofit or charitable institution or corporation. (Attach copy of Articles of Incorporation and documentary evidence verifying current valid nonprofit or charitable status). A partnership know n as: (Name) Check one ( ) General Partnership (Attach statement of General Partnership) ( ) Limited Partnership (Attach Certificate of Limited Partnership) A business association or a joint venture know n as: (Attach joint venture or business association agreement) A Federal, State or local government or instrumentality thereof. Other (explain)

140 7. If the CONTRACTOR is not an individual or a government agency or instrumentality, give date of organization: Provide names, addresses, telephone numbers, title of position (if any) and nature and extent of the interest of the current officers, principal members, shareholders, and investors of the CONTRACTOR, other than a government agency or instrumentality, as set forth below : a. If the CONTRACTOR is a corporation, the officers, directors or trustees, and each stockholder ow ning more than 10% of any class of stock. b. If the CONTRACTOR is a nonprofit or charitable institution or corporation, the members w ho constitute the board of trustees or board of directors or similar governing body. c. If the CONTRACTOR is a partnership, each partner, w hether a general or limited, and either the percent of interest or a description of the character and extent of interest. d. If the CONTRACTOR is a business association or a joint venture, each participant and either the percent of interest or a description of the character and extent of interest. e. If the CONTRACTOR is some other entity, the officers, the members of the governing body, and each person having an interest of more than 10%. Name, Address and Zip Code Position Title (if any) and percent of interest or description of character and extent of interest (Attach extra sheet if necessary) 9. Has the makeup as set forth in Item 8(a) through 8(e) changed w ithin the last tw elve (12) months? If yes, please explain in detail. Mr. Robert Bohrer left the board in the last 12 months. Mr. Jeff Brazel joined the board in the last 12 months Page 2 of 14

141 10. Is it anticipated that the makeup as set forth in Item 8(a) through 8(e) w ill change w ithin the next tw elve (12) months? If yes, please explain in detail. NO. 11. Provide name, address, telephone number, and nature and extent of interest of each person or entity (not named in response to Item 8) w ho has a beneficial interest in any of the shareholders or investors named in response to Item 8 w hich gives such person or entity more than a computed 10% interest in the CONTRACTOR (for example, more than 20% of the stock in a corporation w hich holds 50% of the stock of the CONTRACTOR or more than 50% of the stock in the corporation w hich holds 20% of the stock of the CONTRACTOR): Name, Address and Zip Code Position Title (if any) and extent of interest N/A 12. Names, addresses and telephone numbers (if not given above) of officers and directors or trustees of any corporation or firm listed under Item 8 or Item 11 above: See Attached Board of Directors list 1. Is the CONTRACTOR a subsidiary of or affiliated w ith any other corporation or corporations, any other firm or any other business entity or entities of w hatever nature. If yes, list each such corporation, firm or business entity by name and address, specify its relationship to the CONTRACTOR, and identify the officers and directors or trustees common to the CONTRACTOR and such other corporation, firm or business entity. No. 14. Provide the financial condition of the CONTRACTOR as of the date of the statement and for a period of tw enty-four (24) months prior to the date of its statement as reflected in the attached financial statements, including, but not necessarily limited to, profit and loss statements and statements of financial position. Page of 14

142 Please see attached Audited Financial Statements Page 4 of 14

143 15. If funds for the development/project are to be obtained from sources other than the CONTRACTOR' s ow n funds, provide a statement of the CONTRACTOR' s plan for financing the development/project: The Follow ing sources of capital w ill be used to finance the development: Tax Credit Equity Tax- Exempt Bonds (Permanent Loan) Income from Operations Construction Loan Transfer of Reserves GP Capital Contribution SDHC Loan Assumption 16. Provide sources and amount of cash available to CONTRACTOR to meet equity requirements of the proposed undertaking: a. Name, Address & Zip Code of Bank/Savings & Loan: Amount: $ N/A b. By loans from affiliated or associated corporations or firms: Name, Address & Zip Code of Bank/Savings & Loan: Amount: $ N/A c. By sale of readily salable assets/including marketable securities: Description Market Value Mortgages or Liens N/A $ $ 17. Names and addresses of bank references, and name of contact at each reference: Paul Shipstead Vice President, Community Lending U.S.Bank National Association 4747 Executive Drive, rd Floor San Diego, CA (858) Page 5 of 14

144 Sally Lang Vice President, Real Estate Group Wells Fargo, Community Lending Division Wells Fargo Bank 200 Main Street, Suite 500 Irvine, CA (949) ellsfargo.com 18. Has the CONTRACTOR or any of the CONTRACTOR' s officers or principal members, shareholders or investors, or other interested parties been adjudged bankrupt, either voluntary or involuntary, w ithin the past 10 years? Yes X No If yes, give date, place, and under w hat name. 19. Has the CONTRACTOR or anyone referred to above as " principals of the CONTRACTOR" been convicted of any felony w ithin the past 10 years? Yes X No If yes, give for each case (1) date, (2) charge, () place, (4) court, and (5) action taken. Attach any explanation deemed necessary. 20. List undertakings (including, but not limited to, bid bonds, performance bonds, payment bonds and/or improvement bonds) comparable to size of the proposed project w hich have been completed by the CONTRACTOR including identification and brief description of each project, date of completion, and amount of bond, w hether any legal action has been taken on the bond: Bond Project Date of Amount Action on Type Description Completion of Bond Bond N/A 21. If the CONTRACTOR, or a parent corporation, a subsidiary, an affiliate, or a principal of the CONTRACTOR is to participate in the development as a construction contractor or builder, provide the follow ing information: Not Applicable. a. Name and addresses of such contractor or builder: Page 6 of 14

145 b. Has such contractor or builder w ithin the last 10 years ever failed to qualify as a responsible bidder, refused to enter into a contract after an aw ard has been made, or failed to complete a construction or development contract? Yes No If yes, please explain, in detail, each such instance: c. Total amount of construction or development w ork performed by such contractor or builder during the last three () years: $ General description of such w ork: List each project, including location, nature of w ork performed, name, address of the ow ner of the project, bonding companies involved, amount of contract, date of commencement of project, date of completion, state w hether any change orders w ere sought, amount of change orders, w as litigation commenced concerning the project, including a designation of w here, w hen and the outcome of the litigation. d. Construction contracts or developments now being performed by such contractor or builder: Identification of Date to be Contract or Development Location Amount Completed e. Outstanding construction-contract bids of such contractor or builder: Aw arding Agency Amount Date Opened 22. Provide a detailed and complete statement respecting equipment, experience, financial capacity, and other resources available to such contractor or builder for the performance of the w ork involved in the proposed project, specifying particularly the qualifications of the personnel, the nature of the equipment, and the general experience of the contractor: Page 7 of 14

146 N/A 2. Does any member of the governing body of the San Diego Housing Commission (" COMMISSION" ), Housing Authority of the City of San Diego (" AUTHORITY" ) or City of San Diego (" CITY" ), to w hich the accompanying proposal is being made or any officer or employee of the COMMISSION, the AUTHORITY or the CITY w ho exercises any functions or responsibilities in connection w ith the carrying out of the project covered by the CONTRACTOR' s proposal, have any direct or indirect personal financial interest in the CONTRACTOR or in the proposed contractor? Yes X No If yes, explain. 24. Statements and other evidence of the CONTRACTOR' s qualifications and financial responsibility (other than the financial statement referred to in Item 8) are attached hereto and hereby made a part hereof as follow s: N/A 25. Is the proposed CONTRACTOR, and/or are any of the proposed subcontractors, currently involved in any construction-related litigation? Yes X No If yes, explain: 26. State the name, address and telephone numbers of CONTRACTOR' s insurance agent(s) and/or companies for the follow ing coverages: List the amount of coverage (limits) currently existing in each category: See Certificates Attached. a. General Liability, including Bodily Injury and Property Damage Insurance [Attach certificate of insurance show ing the amount of coverage and coverage period(s)] Page 8 of 14

147 Insurance Agent: Cavignac & Associates 450 B Street, Suite 1800 San Diego, CA Contact: Matt Slakoff (619) Check coverage(s) carried: Comprehensive Form Premises - Operations Explosion and Collapse Hazard Underground Hazard Products/Completed Operations Hazard Contractual Insurance Broad Form Property Damage Independent Contractors Personal Injury b. Automobile Public Liability/Property Damage [Attach certificate of insurance show ing the amount of coverage and coverage period(s)] Check coverage(s) carried: Comprehensive Form Ow ned Hired Non-Ow ned c. Workers Compensation [Attach certificate of insurance show ing the amount of coverage and coverage period(s)] d. Professional Liability (Errors and Omissions) [Attach certificate of insurance show ing the amount of coverage and coverage period(s)] Page 9 of 14

148 e. Excess Liability [Attach certificate(s) of insurance show ing the amount of coverage and coverage period(s)] f. Other (Specify). [Attach certificate(s) of insurance show ing the amount of coverage and coverage period(s)] 27. CONTRACTOR w arrants and certifies that it w ill not during the term of the PROJECT, GRANT, LOAN, CONTRACT, DEVELOPMENT and/or RENDITIONS OF SERVICES discriminate against any employee, person, or applicant for employment because of race, age, sexual orientation, marital status, color, religion, sex, handicap, or national origin. The CONTRACTOR w ill take affirmative action to ensure that applicants are employed, and that employees are treated during employment, w ithout regard to their race, age, sexual orientation, marital status, color, religion, sex, handicap, or national origin. Such action shall include, but not be limited to the follow ing: employment, upgrading, demotion or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The CONTRACTOR agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the COMMISSION setting forth the provisions of this nondiscrimination clause. 28. The CONTRACTOR w arrants and certifies that it w ill not w ithout prior w ritten consent of the COMMISSION, engage in any business pursuits that are adverse, hostile or take incompatible positions to the interests of the Page 10 of 14

149 COMMISSION, during the term of the PROJECT, DEVELOPMENT, LOAN, GRANT, CONTRACT and/or RENDITION OF SERVICES. 29. CONTRACTOR w arrants and certifies that no member, commissioner, councilperson, officer, or employee of the COMMISSION, the AUTHORITY and/or the CITY, no member of the governing body of the locality in w hich the PROJECT is situated, no member of the government body in w hich the Commission w as activated, and no other public official of such locality or localities w ho exercises any functions or responsibilities w ith respect to the assignment of w ork, has during his or her tenure, or w ill for one (1) year thereafter, have any interest, direct or indirect, in this PROJECT or the proceeds thereof. 0. List all citations, orders to cease and desist, stop w ork orders, complaints, judgments, fines, and penalties received by or imposed upon CONTRACTOR for safety violations from any and all government entities including but not limited to, the City of San Diego, County of San Diego, the State of California, the United States of America and any and all divisions and departments of said government entities for a period of five (5) years prior to the date of this statement. If none, please so state: Government Entity Making Complaint Date Resolution N/A 1. Has the CONTRACTOR ever been disqualified, removed from or otherw ise prevented from bidding on or completing a federal, state, or local government project because of a violation of law or a safety regulation. If so, please explain the circumstances in detail. If none, please so state: N/A Page 11 of 14

150 2. Please list all licenses obtained by the CONTRACTOR through the State of California and/or the United States of America w hich are required and/or w ill be utilized by the CONTRACTOR and/or are convenient to the performance of the PROJECT, DEVELOPMENT, LOAN, GRANT, CONTRACT, or RENDITION OF SERVICES. State the name of the governmental agency granting the license, type of license, date of grant, and the status of the license, together w ith a statement as to w hether the License has ever been revoked: Governmental Description License Date Issued Status Revocation Agency License Number (original) (current) (yes/no) N/A. Describe in detail any and all other facts, factors or conditions that may adversely affect CONTRACTOR' s ability to perform or complete, in a timely manner, or at all, the PROJECT, CONTRACT, SALES of Real Property to, DEVELOPMENT, repayment of the LOAN, adherence to the conditions of the GRANT, or performance of consulting or other services under CONTRACT w ith the COMMISSION. N/A 4. Describe in detail, any and all other facts, factors or conditions that may favorably affect CONTRACTOR' s ability to perform or complete, in a timely manner, or at all, the PROJECT, CONTRACT, DEVELOPMENT, repayment of the LOAN, adherence to the conditions of the GRANT, or performance of consulting or other services under CONTRACT w ith the COMMISSION. N/A 5. List all CONTRACTS w ith, DEVELOPMENTS for or w ith, LOANS w ith, PROJECTS w ith, GRANTS from, SALES of Real Property to, the COMMISSION, AUTHORITY and/or the CITY w ithin the last five (5) years: Entity Involved Status (i.e., CITY (Current, delinquent Dollar Date COMMISSION, etc.) repaid, etc.) Amount 2012 Juniper Gardens SDHC current $2,844, Vista Grande SDHC current $2,197,000 Page 12 of 14

151 SEDC current $781, Village Green SDHC current $2,165,067 RDA current $5,788, Parkside RDA current $1,800, Within the last five years, has the proposed CONTRACTOR, and/or have any of the proposed subcontractors, been the subject of a complaint filed w ith the Contractor' s State License Board (CSLB)? Yes X No If yes, explain: 7. Within the last five years, has the proposed CONTRACTOR, and/or have any of the proposed subcontractors, had a revocation or suspension of a CONTRACTOR' s License? Yes X No If yes, explain: 8. List three local references w ho w ould be familiar w ith your previous construction project: Name: Ann Kern Address: 1122 Broadway, suite 00. San Diego, CA Phone: Project Name and Description: Village Green 94 units of low er income housing Name: Debbie Fountain Address: 2965 Roosevelt St., Ste B. Carlsbad, CA Page 1 of 14

152 Phone: Project Name and Description: Vista Las Flores 28 units of affordable housing Name: Eri Kameyama Address: 401 B St, Ste 400 San Diego, CA Phone: Project Name and Description: Parkside 77 units of affordable housing 9. Give a brief statement respecting equipment, experience, financial capacity and other resources available to the Contractor for the performance of the w ork involved in the proposed project, specifying particularly the qualifications of the personnel, the nature of the equipment and the general experience of the Contractor. N/A 40. Give the name and experience of the proposed Construction Superintendent. N/A Page 14 of 14

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154 CERTIFICATION The CONTRACTOR,, hereby certifies that this CONTRACTOR' s Statement for Public Disclosure and the attached information/evidence of the CONTRACTOR' s qualifications and financial responsibility, including financial statements, are true and correct to the best of CONTRACTOR' s know ledge and belief. By: Title: Dated: By: Title: Dated: WARNING: 18 U.S.C provides, among other things, that whoever knowingly and willingly makes or uses a document or writing containing any false, fictitious or fraudulent statement or entry, in any matter within the jurisdiction or any department or agency of the United States, shall be fined not more than $10,000 or imprisoned for not more than five years, or both. ATTEST: State of California County of Subscribed and sw orn to before me this day of, 20. Signature of Notary SEAL Name of Notary Page 16 of 14

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162 WAKELAND HOUSING AND DEVELOPMENT BOARD OF DIRECTORS Elizabeth B. Bluhm Board Treasurer E. Bluhm Consulting LLC PO Box San Diego, CA D. Todd Philips Board Secretary Scripps Ranch Blvd. San Diego, CA 9211 Jeff Brazel Board Member JVB Real Estate Advisors PO Box San Diego, CA Walter Philips Board Member Exec. Dir/CEO of San Diego Youth & Community Services 255 Wing Street San Diego, CA D. Lawrence Clemens Board Member PO Box Rancho Santa Fe, CA Art Rivera Board Member 50 Nutmeg Street San Diego, CA 9210 Lina Ericsson Board Secretary Gresham Savage Nolan & Tilden, PC 501 West Broadway, Suite 800 San Diego, CA Barry J. Schultz Board Member Stuz Artiano Shinoff & Holtz 2488 Historic Decatur Rd Suite 200 San Diego, CA Steve Kuptz Board Chairman Chief Financial Officer Santa Fe Christian Schools 88 Academy Drive Solana Beach, CA Lee Winslett Board Member Vice President Wells Fargo Community Lending 401 B Street, Suite 04-A San Diego, CA Doug Perkins Board Member President of Pacific Gateway Group 570 Oberlin Dr, Suite 209 San Diego, CA 92121

163 WAKELAND HOUSING AND DEVELOPMENT CORPORATION CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 L & C Leaf & Cole, LLP Certified Public Accountants

164 WAKELAND HOUSING AND DEVELOPMENT CORPORATION CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 TABLE OF CONTENTS Independent Auditor s Report 1 Consolidated Statements of Financial Position 2 - Consolidated Statement of Activities Consolidated Statement of Activities Consolidated Statements of Cash Flows 6-7 Notes to Consolidated Financial Statements 8-28 Supplementary Information: Supplementary Consolidating Schedule of Financial Position 29-0 Supplementary Consolidating Schedule of Activities 1-2 Page i

165 L & C Leaf & Cole, LLP Certified Public Accountants A Partnership of Professional Corporations Steven W. Northcote, C.P.A. Michael S. Schreibman, C.P.A. Michael J. Zizzi, C.P.A. Julie A. Firl, C.P.A. Nicholas M. Gines, C.P.A. Members American Institute of Certified Public Accountants California Society of Certified Public Accountants To the Board of Directors Wakeland Housing and Development Corporation Independent Auditor s Report We have audited the accompanying consolidated statements of financial position of Wakeland Housing and Development Corporation as of June 0, 2012 and 2011, and the related consolidated statements of activities and cash flows for the years then ended. These consolidated financial statements are the responsibility of the Corporation s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Wakeland Housing and Development Corporation as of June 0, 2012 and 2011 and the consolidated changes in their net assets and their cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Our audits were conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The accompanying supplementary information is presented for purposes of additional analysis and is not a required part of the consolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the consolidated financial statements as a whole. San Diego, California September 26, Camino Del Rio South, Suite 200, San Diego, California , fax, leafcole@leaf-cole.com

166 WAKELAND HOUSING AND DEVELOPMENT CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION JUNE 0, 2012 AND 2011 ASSETS Current Assets: (Notes 1,, 4, 5 and 12) Cash and cash equivalents $,50,179 $,156,564 Tenant security deposits 28,911 6,171 Accounts receivable 1,110,658 1,957,9 Related party advances 7,720 66,975 Prepaid expenses 115,69 62,640 Accrued interest receivable 1,11 12,647 Wakeland Poway development fund 200, ,000 Total Current Assets 4,856,220 5,412,6 Noncurrent Assets: (Notes 1, 2,, 4, 5, 6, 7, 8, 9 and 12) Accounts receivable 2,99,274 2,514,79 Related party advances 574,89 574,89 Wakeland Poway development fund 119, ,176 Funded reserves 2,527,988 2,756,890 Investment in partnerships Property and equipment, net 22,408,69 16,191,75 Total Noncurrent Assets 28,00,708 22,28,45 TOTAL ASSETS $ 2,886,928 $ 27,740,681 The accompanying notes are an integral part of the consolidated financial statements. 2

167 WAKELAND HOUSING AND DEVELOPMENT CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (CONTINUED) JUNE 0, 2012 AND 2011 LIABILITIES AND NET ASSETS Current Liabilities: (Note 1 and 9) Accounts payable and accrued expenses $ 248,175 $ 44,645 Accrued interest payable 41,561 70,58 Prepaid rent 11,721 - Tenant security deposits 28,910 11,295 Current portion of notes payable 6,771, ,46 Total Current Liabilities 7,47,58 1,458,74 Noncurrent Liabilities: (Notes 7 and 9) Accrued interest payable Share of deficiency in partnerships Notes payable, less current portion Total Noncurrent Liabilities 191,956 57,067 87,89 82,00 14,89,91 15,528,27 15,959,186 16,9,424 Total Liabilities 2,42,724 18,92,158 Commitments and Contingencies (Notes 10, 12 and 1) Unrestricted Net Assets (Note 1) TOTAL LIABILITIES AND NET ASSETS 9,454,204 9,48,52 $ 2,886,928 $ 27,740,681 The accompanying notes are an integral part of the consolidated financial statements.

168 WAKELAND HOUSING AND DEVELOPMENT CORPORATION CONSOLIDATED STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 0, 2012 Revenue and Other Support: Rental income $ 2,746,242 Asset management 959,017 Developer fees 619,000 Resident services 611,114 Interest income 104,044 Contributions 57,500 Gain on disposal of property and equipment 9,052 Grants 4,100 Other income 1,259 Share of loss from partnerships (41,129) Expenses: Total Revenue and Other Support 5,100,199 Program Services: Rental expenses 1,991,79 Development 990,090 Resident services 816,769 Asset management Total Program Services 447,719 4,245,957 Supporting Services: Management and general 706,086 Fundraising 42,475 Total Supporting Services 748,561 Total Program and Supporting Services 4,994,518 Change in Unrestricted Net Assets Unrestricted Net Assets at Beginning of Year UNRESTRICTED NET ASSETS AT END OF YEAR 105,681 9,48,52 $ 9,454,204 The accompanying notes are an integral part of the consolidated financial statements. 4

169 WAKELAND HOUSING AND DEVELOPMENT CORPORATION CONSOLIDATED STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 0, 2011 Revenue and Other Support: Temporarily Unrestricted Restricted Total Rental income $ 2,502,677 $ - $ 2,502,677 Asset management 1,87,699-1,87,699 Developer fees 1,151,000-1,151,000 Resident services 540, ,842 Interest income 80,455-80,455 Contributions 67,000-67,000 Grants 18,400-18,400 Share of loss from partnerships (9,146) - (9,146) Net assets released from restrictions Total Revenue and Other Support 8,600 (8,600) - 5,747,527 (8,600) 5,78,927 Expenses: Program Services: Rental expenses 1,784,26-1,784,26 Development 1,148,925-1,148,925 Resident services 792, ,010 Asset management 60,68-60,68 Total Program Services 4,28,566-4,28,566 Supporting Services: Management and general 674, ,286 Fundraising 4,27-4,27 Total Supporting Services 717, ,559 Total Program and Supporting Services 5,046,125-5,046,125 Change in Net Assets Net Assets at Beginning of Year NET ASSETS AT END OF YEAR 701,402 (8,600) 692,802 8,647,121 8,600 8,655,721 $ 9,48,52 $ - $ 9,48,52 The accompanying notes are an integral part of the consolidated financial statements. 5

170 WAKELAND HOUSING AND DEVELOPMENT CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 0, 2012 AND Cash Flows From Operating Activities: Change in net assets $ 105,681 $ 692,802 Adjustments to reconcile change in net assets to net cash provided by operating activities Depreciation 271, ,079 Amortization 7,564 7,564 Share of loss from partnerships 41,129 9,146 Gain on disposal of property and equipment (9,052) - (Increase) Decrease in Operating Assets: Tenant security deposits (22,740) (6,171) Accounts receivable 961, ,458 Prepaid expenses (52,999) (411) Accrued interest receivable (466) (1,176) Accounts payable and accrued expenses (119,01) 164,257 Accrued interest payable (7,908) 188,888 Prepaid rent 11,721 - Tenant security deposits 17,615 4,165 Net Cash Provided by Operating Activities 844,46 2,247,601 Cash Flows From Investing Activities: Decrease in related party advances, net 29,255 0,091 Funded reserves, net 228,902 (444,994) Wakeland Poway development fund, net 120, ,405 Partnership distributions Purchase of property and equipment (6,581,7) (2,028,168) Proceeds from sale of property and equipment 65,000 1,494,992 Net Cash Used in Investing Activities (6,16,966) (725,204) (Continued) Increase (Decrease) in Operating Liabilities The accompanying notes are an integral part of the consolidated financial statements. 6

171 WAKELAND HOUSING AND DEVELOPMENT CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE YEARS ENDED JUNE 0, 2012 AND Cash Flows From Financing Activities: Advances from line of credit, net $ - $ (270) Principal payments on notes payable (175,000) (210,190) Proceeds from notes payable 5,661,25 278,091 Net Cash Provided by Financing Activities 5,486,25 67,61 Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year CASH AND CASH EQUIVALENTS AT END OF YEAR Supplemental Disclosure of Cash Flow Information: Cash paid during the year for interest 19,615 1,590,028,156,564 1,566,56 $,50,179 $,156,564 $ 1,166,248 $ 544,128 The accompanying notes are an integral part of the consolidated financial statements. 7

172 WAKELAND HOUSING AND DEVELOPMENT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 Note 1 - Organization and Significant Accounting Policies: Organization The consolidated financial statements of the Corporation include the following entities: Wakeland Housing and Development Corporation Wakeland Housing and Development Corporation (the Corporation ) is a California Not-For-Profit Corporation. Its mission is to develop quality, affordable housing projects with resident education programs for low-income families by leveraging innovative financing and public-private partnerships. Poinsettia Parks, LLC Poinsettia Parks, LLC was established in November 2005 to acquire, own and operate a mobile home park located in Poway, California. The Corporation is the sole member of Poinsettia Parks, LLC. Juniper Gardens, L.P. Juniper Gardens, L.P. was established in November 2011 to own and develop a 40 unit multifamily low income rental housing project located in San Diego, California. The Corporation is a 1% limited partner and Wakeland Juniper Gardens, LLC is a 99% managing general partner. The Corporation is the sole member of Wakeland Juniper Gardens, LLC. Other Consolidated Companies Town Square Row Homes, LLC Town Square Row Homes, LLC was established in September 2000 to acquire, develop, improve and sell the six units that comprise Town Square Row Homes located in National City, California. The Corporation is the sole member of Town Square Row Homes, LLC. Wakeland Del Sol, LLC Wakeland Del Sol, LLC was established in December 2005 to serve as the managing general partner of Del Sol Apartments, L.P. to acquire, finance, rehabilitate, own and operate a multifamily apartment complex intended for rental to residents of low income and to engage in any activities reasonably related thereto. Wakeland Del Sol, LLC owns 0.01% of Del Sol Apartments, L.P. The Corporation is the sole member of Wakeland Del Sol, LLC. 8

173 WAKELAND HOUSING AND DEVELOPMENT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 Note 1 - Organization and Significant Accounting Policies: (Continued) Organization (Continued) Other Consolidated Companies (Continued) Wakeland Parkside, LLC Wakeland Parkside, LLC was established in March 2006 to serve as the managing general partner of Parkside Terrace, L.P. to acquire, finance, build, own and operate a multifamily apartment complex intended for rental to residents of low income and to engage in any activities reasonably related thereto. Wakeland Parkside, LLC owns 0.01% of Parkside Terrace, L.P. The Corporation is the sole member of Wakeland Parkside, LLC. Wakeland Los Vecinos, LLC Wakeland Los Vecinos, LLC was established in January 2007 to serve as the managing general partner of Los Vecinos, L.P. to acquire, finance, build, own and operate a multifamily apartment complex intended for rental to residents of low income and to engage in any activities reasonably related thereto. Wakeland Los Vecinos, LLC owns 0.01% of Los Vecinos, L.P. The Corporation is the sole member of Wakeland Los Vecinos, LLC. Wakeland Country Club Apartments, LLC Wakeland Country Club Apartments, LLC was established in November 2007 to serve as the managing general partner of Country Club Apartments, L.P. to acquire, finance, rehabilitate, own and operate a multifamily apartment complex intended for rental to residents of low income and to engage in any activities reasonably related thereto. Wakeland Country Club Apartments, LLC owns 0.01% of Country Club Apartments, L.P. The Corporation is the sole member of Wakeland Country Club Apartments, LLC. Wakeland Village Green Apartments, LLC Wakeland Village Green Apartments, LLC was established in May 2008 to serve as the managing general partner of Wakeland Village Green Apartments, L.P. to acquire, finance, rehabilitate, own and operate a multifamily apartment complex intended for rental to residents of low income and to engage in any activities reasonably related thereto. Wakeland Village Green Apartments, LLC owns 0.01% of Wakeland Village Green Apartments, L.P. The Corporation is the sole member of Wakeland Village Green Apartments, LLC. 9

174 WAKELAND HOUSING AND DEVELOPMENT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 Note 1 - Organization and Significant Accounting Policies: (Continued) Organization (Continued) Other Consolidated Companies (Continued) Wakeland Vista Grande Apartments, L.P. Wakeland Vista Grande Apartments, L.P. was established in June 2008 to acquire, build, own and operate a multifamily apartment complex located in San Diego, California. The Corporation was a 1% limited partner and Wakeland Vista Grande Apartments, LLC was a 99% managing general partner. In October 2010, the Corporation conveyed its interest to a new limited partner and Wakeland Vista Grande Apartments, LLC retained a 0.01% interest as the managing general partner. There were no revenues or expenses of Wakeland Vista Grande Apartments, L.P. included in the consolidated statements of activities for the year ended June 0, 2012 and Wakeland Vista Grande Apartments, L.P. is not included in the consolidated statements of financial position at June 0, 2012 and Wakeland Vista Grande Apartments, LLC Wakeland Vista Grande Apartments, LLC was established in June 2008 to serve as the managing general partner of Wakeland Vista Grande Apartments, L.P. to acquire, finance, build, own and operate a multifamily apartment complex intended for rental to residents of low income and to engage in any activities reasonably related thereto. Wakeland Vista Grande Apartments, LLC owns 0.01% of Wakeland Vista Grande, L.P. The Corporation is the sole member of Wakeland Vista Grande Apartments, LLC. Wakeland Atmosphere, L.P. Wakeland Atmosphere, L.P. was established in August 2010 to own and develop a multifamily apartment complex located in San Diego, California. The Corporation is a 1% limited partner and Wakeland Atmosphere, LLC is a 99% managing general partner. Wakeland Atmosphere, LLC Wakeland Atmosphere, LLC was established in August 2010 to serve as the managing general partner of Wakeland Atmosphere, L.P. to acquire, finance, build, own and operate a multifamily apartment complex intended for rental to residents of low income and to engage in activities reasonably related thereto. Wakeland Atmosphere, LLC owns 0.01% of Wakeland Atmosphere, L.P. The Corporation is the sole member of Wakeland Atmosphere, LLC. 10

175 WAKELAND HOUSING AND DEVELOPMENT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 Note 1 - Organization and Significant Accounting Policies: (Continued) Organization (Continued) Other Consolidated Companies (Continued) Forester Square, L.P. Forester Square, L.P. was established in March 2011 to acquire, build, own and operate a multifamily apartment complex located in Santee, California. The Corporation was a 1% limited partner and Wakeland Forester Square, LLC was a 99% managing general partner. In December 2011, the Corporation conveyed its interest to a new limited partner and Wakeland Forester Square, LLC retained a 0.01% interest as the managing general partner. There were no revenues or expenses of Forester Square, L.P. included in the consolidated statement of activities for the years ended June 0, 2012 and Forester Square, L.P. is not included in the consolidated statement of financial position at June 0, Wakeland Forester Square, LLC Wakeland Forester Square, LLC was established in March 2011 to serve as the managing general partner of Forester Square, L.P. to acquire, finance, build, own and operate a multifamily apartment complex intended for rental to residents of low income and to engage in activities reasonable related thereto. Wakeland Forester Square, LLC owns 0.01% of Forester Square, L.P. The Corporation is the sole member of Wakeland Forester Square, LLC. Wakeland Juniper Gardens, LLC Wakeland Juniper Gardens, LLC was established in November, 2011 to serve as the managing general partner of Juniper Gardens, L.P. to acquire, finance, rehabilitate, own and operate a multifamily apartment complex intended for rental to residents of low income and to engage in any activities reasonably related thereto. Wakeland Juniper Gardens, LLC owns 99% of Juniper Gardens, L.P. The Corporation is the sole member of Wakeland Juniper Gardens, LLC. 11

176 WAKELAND HOUSING AND DEVELOPMENT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 Note 1 - Organization and Significant Accounting Policies: (Continued) Organization (Continued) The following is a brief description of the Corporation s programs: Rental Expenses The Corporation owns and operates a mobile home park, Poinsettia Parks, LLC and a rental housing project, Juniper Gardens, L.P. Both projects provide affordable housing to low and moderate income families including seniors, and also conduct resident education programs to the low income families. These expenses are comprised of operational expenses such as utilities, operating and maintenance, and taxes and insurance. Development The Corporation s mission is to develop affordable housing using two methods: (1) acquisition and rehabilitation of existing multifamily residential housing; and (2) acquisition and entitlement of land and construction of new buildings. Resident Services The resident services department is responsible for all onsite day-to-day resident services program implementation. The department provides initial set up, conducts ongoing assessments of community s program needs, develops community partners; while facilitating comprehensive programs for youth, adults and seniors. Asset Management The asset management department administers all placed in service real estate in the Corporation s diverse portfolio, which consists of over 5,700 housing units. The department oversees all property tax abatement activities, monitors regulatory mandates, hires property management companies, provides property management oversight and develops operating budgets and capital improvement plans. Significant Accounting Policies Consolidated Financial Statements The consolidated financial statements include the accounts of Wakeland Housing and Development Corporation, Town Square Row Homes, LLC, Poinsettia Parks, LLC, Wakeland Del Sol, LLC, Wakeland Parkside, LLC, Wakeland Los Vecinos, LLC, Wakeland Country Club Apartments, LLC, Wakeland Village Green Apartments, LLC, Wakeland Vista Grande Apartments, LLC, Wakeland Atmosphere, L.P., Wakeland Atmosphere, LLC, Forester Square, L.P., Wakeland Forester Square, LLC, Juniper Gardens, L.P. and Wakeland Juniper Gardens, LLC. All material intercompany transactions have been eliminated in consolidation. 12

177 WAKELAND HOUSING AND DEVELOPMENT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 Note 1 - Organization and Significant Accounting Policies: (Continued) Significant Accounting Policies (Continued) Method of Accounting The consolidated financial statements of the Corporation have been prepared on the accrual basis of accounting which is in accordance with accounting principles generally accepted in the United States of America (GAAP) and, accordingly, reflect all significant receivables, payables, and other liabilities. Financial Statement Presentation The consolidated financial statements present information regarding the financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets and permanently restricted net assets. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Risks and Uncertainties The Corporation invests in various types of investment securities which are exposed to various risks, such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and such changes could materially affect the amounts reported in the consolidated statement of financial position. Fair Value Measurements The Corporation has adopted the fair value standards for financial assets and liabilities that are required to be measured at fair value on a recurring basis. The Fair Value Measurement standards define fair value, establish a framework for measuring fair value, outline a fair value hierarchy based on inputs used to measure fair value and enhance disclosure requirements for fair value measurements. The fair value hierarchy distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Level 1 or 2 of the hierarchy) and the reporting entity s own assumptions about market participant assumptions (unobservable inputs classified within Level of the hierarchy). These standards do not change existing guidance as to whether or not an instrument is carried at fair value. 1

178 WAKELAND HOUSING AND DEVELOPMENT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 Note 1 - Organization and Significant Accounting Policies: (Continued) Significant Accounting Policies (Continued) Fair Value Measurements (Continued) The Corporation s consolidated statement of financial position includes the following financial instruments that are required to be measured at fair value on a recurring basis: Guaranteed Investment Contracts are considered Level assets and are reported at fair value based on management s assumptions about the expected investment return on the underlying assets. Allowance for Doubtful Accounts Management believes that all accounts receivable and related party advances were fully collectible; therefore, no allowance for doubtful accounts has been established at June 0, 2012 and Contributions Contributions are recognized when the donor makes a promise to give to the Corporation that is, in substance, unconditional. Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire in the fiscal year in which the contributions are recognized. All other donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. Capitalization and Depreciation The Corporation capitalizes all expenditures in excess of $1,000 for property and equipment at cost, while donations of property and equipment are recorded at their estimated fair values. Such donations are reported as unrestricted unless the donor has restricted the donated asset to a specific purpose. Assets donated with explicit restrictions regarding their use and contributions of cash that must be used to acquire property and equipment are reported as restricted. Absent donor stipulations regarding how long those donated assets must be maintained, the Corporation reports expirations of donor restrictions when the donated or acquired assets are placed in service as instructed by the donor. The Corporation reclassifies temporarily restricted net assets to unrestricted net assets at that time. Property and equipment are depreciated using the straight-line method over the estimated useful asset lives as follows: Building Improvements Computer equipment Office equipment Vehicles 27.5 years years 5 years 5-7 years 5 years Depreciation expense totaled $271,046 and $219,079 for the years ended June 0, 2012 and 2011, respectively. 14

179 WAKELAND HOUSING AND DEVELOPMENT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 Note 1 - Organization and Significant Accounting Policies: (Continued) Significant Accounting Policies (Continued) Capitalization and Depreciation (Continued) Maintenance and repairs are charged to operations as incurred. Upon sale or disposition of property or equipment, the asset account is reduced by the cost and the accumulated depreciation account is reduced by the depreciation taken prior to the sale. Any resultant gain or loss is then recorded as income or expense. Impairment of Real Estate The Corporation reviews its investment in real estate for impairment whenever events and changes in circumstances indicate that the carrying value of such property may not be recoverable. Recoverability is measured by a comparison of the carrying amount of the real estate to the future net undiscounted net cash flows expected to be generated by the rental property and any estimated proceeds from the eventual disposition of the real estate. If the real estate is considered to be impaired, the impairment to be recognized is measured at the amount by which the carrying amount of real estate exceeds the fair value of such property. There were no impairment losses recognized in 2012 or Amortization Bond discounts totaling $264,71, net of accumulated amortization of $68,91 and $60,827 at June 0, 2012 and 2011, respectively are recorded at cost and amortized on the straight-line method. Amortization expense totaled $7,564 and $7,564 for the years ended June 0, 2012 and 2011, respectively. Compensated Absences Accumulated unpaid vacation and other employee benefit amounts totaling $64,129 and $81,777 at June 0, 2012 and 2011, respectively are accrued when incurred and included in accounts payable and accrued expenses. Donated Services The Corporation utilizes the services of many volunteers throughout the year. This contribution of services by the volunteers is not recognized in the consolidated financial statements unless the services received (a) create or enhance nonfinancial assets or (b) require specialized skills which are provided by individuals possessing those skills and would typically need to be purchased if not provided by donation. The donated services for the years ended June 0, 2012 and 2011, did not meet the requirements above, therefore no amounts were recognized in the consolidated financial statements. Allocated Expenses Expenses have been allocated by function among program and supporting services classifications on the basis of internal records and estimates made by the Corporation s management. 15

180 WAKELAND HOUSING AND DEVELOPMENT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 Note 1 - Organization and Significant Accounting Policies: (Continued) Significant Accounting Policies (Continued) Income Taxes The Corporation is a public charity and is exempt from income taxes under Section 501(c)() of the Internal Revenue Code and Section 2701(d) of the California Revenue and Taxation Code. The Corporation believes that it has appropriate support for any tax positions taken, and as such, does not have any uncertain tax positions that are material to the financial statements. The Corporation is not a private foundation. No provision or benefit for income taxes for Town Square Row Homes, LLC, Poinsettia Parks, LLC, Wakeland Del Sol, LLC, Wakeland Parkside, LLC, Wakeland Los Vecinos, LLC, Wakeland Country Club Apartments, LLC, Wakeland Village Green Apartments, LLC, Wakeland Atmosphere, L.P., Wakeland Atmosphere, LLC, Forester Square, L.P., and Wakeland Forester Square, LLC, Juniper Gardens, LP and Wakeland Juniper Gardens, LLC has been included in these consolidated statements since taxable income (loss) passes through to, and is reportable by, the Member or Partner individually. The Corporation s Return of Organization Exempt from Income Tax and the partnership and limited liability company s tax returns for the years ended June 0, 2012, 2011, 2010, and 2009 and December 1, 2011, 2010, 2009 and 2008 are subject to examination by the Internal Revenue Service and State taxing authorities, generally the three to four years after the returns were filed. Concentration of Credit Risk The Corporation maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Corporation has not experienced any losses in such accounts. The Corporation believes it is not exposed to any significant credit risk on cash and cash equivalents. Cash and Cash Equivalents For purposes of the consolidated statement of cash flows, the Corporation considers all highly liquid investments available for current use with an initial maturity of three months or less to be cash equivalents. Certificates of deposits that may be redeemed without a significant penalty are considered cash and cash equivalents regardless of the maturity. The following is the composition of the combined amounts appearing in the consolidated statement of cash flows: Cash and money market funds $ 798,71 $ 1,704,65 Certificates of deposit 2,551,448 1,451,911 Total Cash and Cash Equivalents $,50,179 $,156,564 At June 0, 2012, certificates of deposit bear interest at rates ranging from.15% to.85% and mature between July 2012 and February

181 WAKELAND HOUSING AND DEVELOPMENT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 Note 1 - Organization and Significant Accounting Policies: (Continued) Significant Accounting Policies (Continued) Reclassification The Corporation has reclassified certain prior year information to conform with current year presentation. Subsequent Events In preparing these consolidated financial statements, the Corporation has evaluated events and transactions for potential recognition or disclosure through September 26, 2012, the date the consolidated financial statements were available to be issued. Note 2 - Fair Value Measurements: The following table summarizes assets measured at fair value by classification within the fair value hierarchy as of June 0: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) 2012 Significant Unobservable Inputs (Level ) Balance as of June 0, 2012 Guaranteed Investment Contracts $ - $ - $ 2,217,49 $ 2,217,49 $ - $ - $ 2,217,49 $ 2,217,49 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) 2011 Significant Unobservable Inputs (Level ) Balance as of June 0, 2011 Guaranteed Investment Contracts $ - $ - $ 2,217,49 $ 2,217,49 $ - $ - $ 2,217,49 $ 2,217,49 17

182 WAKELAND HOUSING AND DEVELOPMENT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 Note 2 - Fair Value Measurements: (Continued) The reconciliation for financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level ) is as follows: Guaranteed Investment Contracts Balance, June 0, 2010 $ 1,99,81 Total realized/unrealized gains (losses) - Purchase and sales, net 277,680 Transfers - Balance, June 0, ,217,49 Total realized/unrealized gains (losses) - Purchase and sales, net 76,924 Transfers (76,924) Balance, June 0, 2012 $ 2,217,49 Note - Accounts Receivable: Accounts receivable consist of the following at June 0: Related Parties: Wakeland Vista Grande Apartments, L.P. $ 721,805 $ 505,16 Beyer Boulevard Apartments, L.P. 548,70 619,548 Lillian Place, L.P. 411,608 40,25 Del Sol Apartments, L.P. 01,51 289,682 Wakeland Village Green Apartments, L.P. 25,9 675,55 FF Hills LP 246,62 208,810 Forester Square, L.P. 140,000 - Thornbridge L.P. 11,65 90,247 Parkside Terrace, L.P. 111,958 1,057,552 Country Club Apartments, L.P. 98,10 147,282 Canyon Rim LP 71,791 11,104 Fairfield Turnleaf L.P. 61,169 40,277 Sienna Vista, L.P. 60,5 40,251 Coronado Terrace Preservation, L.P. 60,000 65,144 Las Colinas Associates L.P. 45,558 1,869 Westgate Courtyards, L.P. 7,550 8,278 Fairfield Trestles L.P. 2,918 2,27 Fairfield Bristol, L.P. 2,849 21,578 Watercrest L.P. 2,517 0,51 18

183 WAKELAND HOUSING AND DEVELOPMENT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 Note - Accounts Receivable: (Continued) Related Parties: (Continue) Fairfield Belmont L.P. $ 20,712 $ 51,566 Los Vecinos, L.P. 19,288 6,65 Trinity Escondido 1, L.P. 16,084 6,849 The Stratton LP 8,49 6,64 Westchester Park, L.P. 6,82 10,958 Fairfield Creekview L.P. 5,550 5,470 Walden Glen LP 4,926 1,991 Fairfield Wyndover L.P. 4,700 5,500 Pacific Vista Flores, L.P. 4,202 4,080 MG Creekside Apartments L.P. 2,156 2,254 Fairfield Raintree L.P. 2,02 2,768 Fairfield Sagewood L.P. 1,140 8,225 Subtotal,478,287 4,457,07 Other: Other receivable 20,447 5,988 Rent receivable - Juniper Gardens, L.P. 10,285 - Rent receivable - Poinsettia Parks, LLC 91 8,657 Subtotal 1,645 14,645 Total Accounts Receivable $,509,92 $ 4,471, Financial Statement Presentation: Current $ 1,110,658 $ 1,957,9 Noncurrent 2,99,274 2,514,79 $,509,92 $ 4,471,718 19

184 WAKELAND HOUSING AND DEVELOPMENT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 Note 4 - Related Party Advances: The Corporation has advanced development funds to certain Limited Partnerships in which the Corporation is the Managing General Partner. Related party advances consist of the following at June 0: Lillian Place, L.P. $ 574,89 $ 574,89 Wakeland Village Green Apartments, L.P. 7,720 - Wakeland Vista Grande Apartments, L.P. - 64,575 Parkside Terrace, L.P. - 2,400 Total Related Party Advances $ 612,559 $ 641, Financial Statement Presentation: Current $ 7,720 $ 66,975 Noncurrent 574,89 574,89 $ 612,559 $ 641,814 Note 5 - Wakeland Poway Development Fund: In accordance with the provisions of the Mobilehome Park Sale and Operating Agreement with the Poway Redevelopment Agency ( Agency ), the Company shall deposit one-half of the residual cash flow it receives from the Park into the Wakeland Poway Development Fund. Withdrawals from the Wakeland Poway Development Fund require the approval of the Agency. The activities of the Wakeland Poway Development Fund consist of the following for the years ended June 0: Balance, Beginning of Year $ 440,176 $ 662,581 Add: Deposits 195, ,809 Interest income 620 1,91 Less: Approved withdrawals (16,648) (44,269) Other withdrawals - fees (224) (6) Balance, End of Year $ 19,629 $ 440, Financial Statement Presentation: Current $ 200,000 $ 150,000 Noncurrent 119, ,176 $ 19,629 $ 440,176 20

185 WAKELAND HOUSING AND DEVELOPMENT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 Note 6 - Funded Reserves: In accordance with the provisions of the note payable to the City of Poway, funded reserves are held by a financial institution to be used for reserves, including a debt service fund, a debt service reserve fund, a revenue fund, an operating fund, a park improvement fund, a service fee fund, an administrative fund, a surplus fund, an agency loan fund and a repairs and replacement fund. The funded reserves consist of the following at June 0: Cash and Cash Equivalents Guaranteed Investment Contracts Total Balance, June 0, 2010 $ 72,08 $ 1,99,81 $ 2,11,896 Add: Deposits 1,82,82-1,82,82 Interest income 4 70,906 70,910 Less: Withdrawals (1,008,298) - (1,008,298) Transfers (206,774) 206,774 - Balance, June 0, ,97 2,217,49 2,756,890 Add: Deposits 1,414,049-1,414,049 Interest income - 76,924 76,924 Less: Withdrawals (1,719,875) - (1,719,875) Transfers 76,924 (76,924) - Balance, June 0, 2012 $ 10,495 $ 2,217,49 $ 2,527,988 The guaranteed investment contracts earn interest at.49% and mature January 1, The accrued interest receivable on the guaranteed investment contracts totaled $1,11 and $12,647 at June 0, 2012 and 2011, respectively. Note 7 - Investment in Limited Partnerships: The Corporation owns a general partner interest in limited partnerships accounted for on the equity method. The following are the balances in the Corporation s partnership capital accounts as of June 0: Investment in Partnerships: Westgate Courtyards, L.P. (0.005%) $ 285 $ 08 Total Investment in Partnerships $ 285 $ 08 21

186 WAKELAND HOUSING AND DEVELOPMENT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 Note 7 - Investment in Limited Partnerships: (Continued) Share of Deficiency in Partnerships: Del Sol Apartments, L.P. (0.01%) $ 288,817 $ 288,729 Wakeland Village Green Apartments, L.P. (0.01%) 218, ,170 Thornbridge L.P. (0.10%) 11,29 90,491 FF Hills LP (0.02%) 76,710 76,712 Sienna Vista, L.P. (0.10%) 74,061 7,59 Las Colinas Associates L.P. (0.10%) 8,561 24,507 Watercrest L.P. (0.10%) 29,910 27,291 Pacific Vista Las Flores, L.P. (0.05%) 9,80 9,29 Trinity Escondido 1, L.P. (0.005%),765,77 Westchester Park, L.P. (0.10%),551,477 MG Creekside Apartments L.P. (0.10%) 2,591 2,504 Canyon Rim LP (0.02%) 2,114 2,165 Fairfield Creekview L.P. (0.02%) 1,95 1,702 Walden Glen LP (0.02%) 1,579 1,55 The Stratton LP (0.02%) 1,45 1,89 Fairfield Belmont L.P. (0.02%) 1,40 1,18 Fairfield Sagewood L.P. (0.02%) 1, Fairfield Trestles L.P. (0.02%) Fairfield Bristol, L.P. (0.02%) Fairfield Raintree L.P. (0.02%) Fairfield Wyndover L.P. (0.02%) Fairfield Turnleaf L.P. (0.02%) Vista Terrace Hills Preservation, L.P. (0.01%) Country Club Apartments, L.P. (0.01%) Parkside Terrace, L.P. (0.01%) Los Vecinos, L.P. (0.01%) Beyer Boulevard Apartments, L.P. (0.01%) Lillian Place, L.P. (0.005%) Coronado Terrace Preservation, L.P. (0.01%) Wakeland Vista Grande Apartments, L.P. (0.01%) 58 8 Total Share of Deficiency in Partnerships $ 87,89 $ 82,00 22

187 WAKELAND HOUSING AND DEVELOPMENT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 Note 7 - Investment in Limited Partnerships: (Continued) The Corporation provided development, management, and resident services to these partnerships for which it earned the following amounts for the years ended June 0: Developer Fees Asset Management Fees Resident Services Developer Fees Asset Management Fees Resident Services Related Parties: Beyer Boulevard Apartments, L.P. $ - $ 14,120 $ 28,242 $ - $ 14,074 $ 27,420 Canyon Rim LP - 66,242 0,560-65,741 29,670 Coronado Terrace Preservation, L.P ,789 4, ,708,018 Country Club Apartments, L.P. - 44,64 40,02-486,757 25,02 Del Sol Apartments, L.P. - 72,954 40,50-70,827,966 Fairfield Belmont L.P. - 22,706 1,582-24,217 1,189 Fairfield Bristol, L.P. - 11,271 6,185-10,8 6,005 Fairfield Creekview L.P. - 44,755 21,22-44,847 20,607 Fairfield Raintree L.P. - 2,64 9,698-2,905 9,415 Fairfield Sagewood L.P. - 1,899 6,650-14,085 6,456 Fairfield Trestles L.P. - 9,645 4,05-9,251 4,179 Fairfield Turnleaf L.P. - 20,892 9,217-20,598 8,950 Fairfield Wyndover, L.P. - 19,524 8,246-19,669 8,004 FF Hills LP - 6,068 20,78-4,764 20,14 Forester Square, L.P. 280, Las Colinas Associates L.P. - 1,649 15,970-1,705 15,505 Lillian Place, L.P. - 8,282 17,150-8,041 16,650 Los Vecinos, L.P. - 12,92 27,000-12,545 27,000 MG Creekside Apartments L.P. - 26,086 19,884-25,658 19,05 Pacific Vista Las Flores, L.P. - 8,277 7,008-8,09 6,906 Parkside Terrace, L.P. - 50,25 1,610-54,771 24,60 Sienna Vista, L.P. - 2,055 18,258-2,74 17,724 The Stratton LP - 40,77 18,918-9,177 18,67 Thornbridge L.P. - 4,941 17,42 -,449 16,85 Trinity Escondido 1, L.P. - 9,26 26,467-9,288 26,796 Vista Terrace Hills Preservation, L.P. - 71,26 29,098-68,095 28,254 Wakeland Village Green Apartments, L.P. - 21,800 0,000 60,000 21,06 24,000 Wakeland Vista Grande Apartments, L.P. 9,000 21,112 24, ,000 14,16 - Walden Glen LP - 2,56 11,278-22,766 10,950 Watercrest L.P. - 17,055 12,09-17,590 12,129 Westgate Courtyards, L.P. - 24,751 22,241-24,659 20,916 Westchester Park, L.P. - 22,180 9,096-21,707 8,80 Total $ 619,000 $ 959,017 $ 611,114 $ 1,151,000 $ 1,87,699 $ 540,842 2

188 WAKELAND HOUSING AND DEVELOPMENT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 Note 8 - Property and Equipment: Property and equipment consist of the following at June 0: Land $ 12,610,89 $ 11,05,847 Building 6,199,065 1,08,6 Improvements,560,402,525,888 Construction-in-progress 1,475,64 1,429,270 Computer equipment 146,92 1,088 Office equipment 112,08 148,047 Vehicles,200,200 Subtotal 24,107,570 17,628,97 Less: Accumulated depreciation (1,698,877) (1,47,220) Property and Equipment, Net $ 22,408,69 $ 16,191,75 Note 9 - Notes Payable: Notes payable consist of the following at June 0: A secured note payable is held by the Poway Redevelopment Agency, a public body, corporate and politic, in the amount of $5,112,21 and accrues interest at rates between 1.5% - 7% per annum. Interest rates are based on the schedule included in the loan documents. Payments on the note begin on June 10, 2009 provided that the required payment shall not exceed net cash flow from Poinsettia Mobile Home Parks during the previous year. All unpaid principal and interest is due and payable on June 10, 208. This note is secured by a Deed of Trust on Poinsettia Mobile Home Park. Accrued interest payable totaled $468,220 and $848,881 at June 0, 2012 and 2011, respectively. $ 5,112,21 $ 5,112,21 A secured note payable is held by the City of Poway, a California municipal corporation duly organized and existing under the laws of the State of California, in the original amount of $10,615,000 and accrues interest at rates between 1.8% - 5.5% per annum. Interest rates are based on the schedule included in the loan documents. Payments on the note began on May 1, 2004 and to ensure payments, the Corporation agrees to pay to the Trustee commencing on July 15, 200, all net operating revenues received on or prior to the 1 th of the month and not otherwise remitted in the prior month. All unpaid principal and interest is due and payable on May 1, 208. This note is secured by a Deed of Trust on Poinsettia Mobile Home Park. Accrued interest payable totaled $81,456 and $82,904 at June 0, 2012 and 2011, respectively. 9,270,000 9,445,000 24

189 WAKELAND HOUSING AND DEVELOPMENT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 Note 9 - Notes Payable: (Continued) An unsecured loan payable is held by Wells Fargo Community Development, in the amount of $250,000. The loan accrues interest at an initial fixed rate equal to 2.0% per annum for the first ten years from the date of the initial disbursement and interest is payable quarterly. The outstanding principal balance of the loan and accrued, but unpaid interest, is due and payable October 22, 201. $ 250,000 $ 250,000 An unsecured loan payable is held by Wells Fargo Community Development in the amount of $250,000. The loan accrues interest at a fixed rate equal to 2.0% per annum from the date of the initial disbursement and interest is payable quarterly. The outstanding principal balance of the loan and accrued, but unpaid interest, is due and payable November 25, , ,000 An unsecured loan payable is held by Wells Fargo Community Development, in the amount of $50,000. The loan accrues interest at a fixed rate equal to 2.0% per annum from the date of the initial disbursement and interest is payable quarterly. Beginning December 21, 2012, four quarterly payments of principal and interest are due through September 21, 201. The outstanding balance of the loan and accrued, but unpaid interest is due and payable September 21, ,000 50,000 An unsecured note payable is held by the U.S. Bancorp Community Development Corporation, in the amount of $500,000, with interest payable quarterly at a rate of 4% per annum. All unpaid principal and interest is due and payable on November 1, , ,000 An unsecured note payable is held by Corporation for Supportive Housing, in the amount of $50,000. The note is noninterest bearing and all unpaid principal is due and payable on December 15, ,000 - A secured note payable is held by Low Income Investment Fund, a California Nonprofit Public Benefit Corporation, in the amount of $5,595,000. The loan accrues interest at the rate of 6.47% per annum from the date of the initial disbursement and interest is payable monthly. The outstanding principal balance of the loan and accrued, but unpaid interest is due and payable twelve months from the loan closing. This note is secured by a deed of trust on Juniper Garden Apartments and is due and payable in March 201. Accrued interest payable totaled $0,166 and $-0- at June 0, 2012 and 2011, respectively. 5,595,000-25

190 WAKELAND HOUSING AND DEVELOPMENT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 Note 9 - Notes Payable: (Continued) A secured loan payable is held by the Poway Redevelopment Agency in the amount of $781,667. The loan accrues interest at the rate of % per annum commencing with the date of first disbursement. The outstanding balance of the loan and accrued interest is due and payable at the earlier of when the Corporation acquires a leasehold interest in the property or June 17, Secured by an assignment of plans. Accrued interest payable totaled $25,675 and $11,640 at June 0, 2012 and 2011, respectively. $ 48,671 $ 467,46 Notes Payable 21,860,902 16,74,667 Less: Bond discount (196,40) (20,904) Total Notes Payable 21,664,562 16,170,76 Less: Current Portion (6,771,171) (642,46) Notes Payable, Noncurrent $ 14,89,91 $ 15,528,27 Future principal payments on the notes payable are as follows: Years Ended June $ 6,771, , , , ,000 Thereafter 1,897,21 $ 21,860,902 Note 10 - Lines-of-Credit: The Corporation had a secured line-of-credit with a financial institution under which the Corporation could borrow up to $200,000. Advances under this agreement included interest at the Wall Street Journal West Coast Edition prime rate (.25% as of June 0, 2011) and was closed in October The line-of-credit was secured by a certificate of deposit in the amount of $200,000. There were no balances outstanding under this line-ofcredit at June 0, 2012 and 2011, respectively. The Corporation has an unsecured business line-of-credit agreement with a financial institution under which the Corporation may borrow up to $100,000. Advances under this agreement bear interest at the Wall Street Journal West Coast Edition prime rate plus 1.25% (4.50% at June 0, 2012) and matures June 28, 201. There were no balances outstanding under this line-of-credit at June 0, 2012 and

191 WAKELAND HOUSING AND DEVELOPMENT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 Note 11 - Temporarily Restricted Net Assets: Temporarily restricted net assets totaled $-0- at June 0, 2012 and Net assets in the amount of $-0- and $8,600 for the years ended June 0, 2012 and 2011, respectively, were released from donor restrictions by incurring expenses and events satisfying the purpose or time restrictions specified by donors. Note 12 - Pledged Revenues: The City of Poway issued 200 Housing Revenue Bonds in the amount of $10,615,000 less a bond discount of $264,71. The proceeds of the sale of the Bonds were used to fund a loan to Poway Manufactured Home Communities, LLC (Poway MHC), which was used to finance the acquisition of certain real property constituting the Poinsettia Mobile Home Park and any structures, site improvements, facilities, and fixtures. The proceeds were also used to finance certain facilities, replacements and improvements beneficial to the project, fund a debt service reserve fund and a repair and replacement fund, and pay certain costs of issuance. The funded reserves totaled $2,527,988 and $2,756,890 at June 0, 2012 and 2011, respectively, and accrued interest receivable totaled $1,11 and $12,647 at June 0, 2012 and 2011, respectively. In accordance with the Loan Agreement with the City of Poway, U.S. Bank National Association, as Trustee, and Poway MHC, Poway MHC (currently Poinsettia Parks, LLC)(See Note 1) has agreed to pay to the Trustee not later than the 15th day of each month, commencing July 15, 200, all net operating revenues received on or prior to the 1th day of the month and not otherwise remitted in the prior month. Any net operating revenues received by Poinsettia Parks, LLC after the 1th day of the current month shall be transferred to the Trustee on the 15th day of the immediately following month. Poinsettia Parks, LLC agrees to pay, in repayment of their loan, all net operating revenues until the principal of, premium if any, and interest on the Bonds are paid or provision for payment is made in accordance with the Indenture of Trust. Note 1 - Commitments and Contingencies: Lease Commitments The Corporation leases office space at 120 Columbia Street through April 0, The Corporation also had a lease agreement for the rental of office space in Orange County through December 1, Occupancy expense included in the consolidated statements of activities totaled $150,907 and $159,06 for the years ended June 0, 2012 and 2011, respectively. Future minimum lease payments under the lease is as follows: Years Ended June $ 112, , , , ,679 Thereafter 112,747 $ 698,6 27

192 WAKELAND HOUSING AND DEVELOPMENT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 0, 2012 AND 2011 Note 1 - Commitments and Contingencies: (Continued) Employee Benefit Plan The Corporation has established a 401(K) plan covering employees who have completed 90 days of service and have attained age 18. Employees may defer a percentage of their annual compensation, not to exceed the annual amount allowed by law. The Corporation made a safe harbor matching contribution equal to 100% of employee salary deferrals that do not exceed 4% of employee compensation through June 0, The Corporation contributed $50,591 and $5,647 for the years ending June 0, 2012 and 2011, respectively. Litigation The Corporation is, from time to time, involved in lawsuits arising in the ordinary course of its business that, in the opinion of management, will not have a material effect on the Corporation s consolidated results of operations. Guarantees The Corporation is subject to certain guarantees in connection with their general partner interest in limited partnerships. The Corporation has operating deficit guarantees in the amount of $,046,876 and $,046,876 as of June 0, 2012 and 2011, respectively, however, no advances have been required. In addition, the Corporation has completion and repayment guarantees pursuant to specific agreements. 28

193 WAKELAND HOUSING AND DEVELOPMENT CORPORATION SUPPLEMENTARY CONSOLIDATING SCHEDULE OF FINANCIAL POSITION JUNE 0, 2012 ASSETS Juniper Gardens, L.P. Other Consolidated Companies Eliminations Current Assets: Cash and cash equivalents $,045,272 $ 214,051 $ 57,299 $,557 $ - $,50,179 Tenant security deposits - 15,104 1, ,911 Accounts receivable Related party advances Prepaid expenses Wakeland Housing and Development Corporation Poinsettia Parks, LLC Consolidated 922, , ,91 (8,485) 1,110,658 7, ,720 58,977,019 52, ,69 1,202, ,101 (1,228,448) - 16,47 1, (16,47) 1,11 Intercompany receivable Accrued interest receivable Wakeland Poway development fund - 200, ,000 Total Current Assets 5,282, ,200 15, ,471 (1,25,406) 4,856,220 Noncurrent Assets: Accounts receivable 1,91, ,955-2,99,274 Related party advances 574, ,89 Wakeland Poway development fund - 119, ,629 Funded reserves Investment in partnerships Property and equipment, net Total Noncurrent Assets - 2,527, ,527, ,060,655 14,722,98 6,625, ,408,69,567,098 17,70,600 6,625, ,955-28,00,708 TOTAL ASSETS $ 8,849,98 $ 17,816,800 $ 6,778,170 $ 695,426 $ (1,25,406) $ 2,886,928 29

194 WAKELAND HOUSING AND DEVELOPMENT CORPORATION SUPPLEMENTARY CONSOLIDATING SCHEDULE OF FINANCIAL POSITION (CONTINUED) JUNE 0, 2012 LIABILITIES AND NET ASSETS Current Liabilities: Accounts payable accrued expenses Accrued interest payable Intercompany payable Wakeland Housing and Development Corporation Other Poinsettia Juniper Consolidated Parks, LLC Gardens, L.P. Companies Eliminations Consolidated $ 188,749 $ 2,442 $ 5,469 $ - $ (8,485) $ 248,175 25,675 57,270 46,69 - (16,47) 41,111 26,101-1,168,428,919 (1,228,448) - Prepaid rent , ,721 Tenant security deposits - 15,104 1, ,910 Current portion of notes payable 996, ,000 5,595, ,771,171 Total Current Liabilities 1,26, ,816 6,871,06,919 (1,25,406) 7,47,088 Noncurrent Liabilities: Accrued interest payable - 192, ,406 Share of deficiency in partnerships 65, ,029-87,89 Notes payable, less current portion 887,500 14,005, ,89,91 Total Noncurrent Liabilities 1,25,10 14,198, ,029-15,959,66 Total Liabilities 2,490,006 14,78,11 6,871,06 541,948 (1,25,406) 2,42,724 Unrestricted Net Assets 6,59,92,0,687 (92,89) 15,478-9,454,204 TOTAL LIABILITIES AND NET ASSETS $ 8,849,98 $ 17,816,800 $ 6,778,170 $ 695,426 $ (1,25,406) $ 2,886,928 0

195 WAKELAND HOUSING AND DEVELOPMENT CORPORATION SUPPLEMENTARY CONSOLIDATING SCHEDULE OF ACTIVITIES FOR THE YEAR ENDED JUNE 0, 2012 Wakeland Hosuing and Other Development Poinsettia Juniper Consolidated Corporation Parks, LLC Gardens, L.P. Companies Eliminations Consolidated Revenue and Other Support: Rental income $ - $ 2,596,894 $ 149,48 $ - $ - $ 2,746,242 Asset management 1,12, ,88 (402,678) 959,017 Developer fees 619, ,000 Resident services 67, (26,68) 611,114 Interest income 26,02 78, ,044 Contributions 57, ,500 Gain/(loss) on disposal of property and equipment (9,88) 48, ,052 Grants 4, ,100 Other income 1, ,259 Share of loss from partnerships (40,548) - - (581) - (41,129) Total Revenue and Other Support 2,427,564 2,72, ,49 228,807 (429,16) 5,100,199 Expenses: Program Services: Rental expenses - 1,80, ,27 - (64,950) 1,991,79 Development 990, ,090 Resident services 816, ,769 Asset management Total Program Services 447, ,719 2,254,578 1,80, ,27 - (64,950) 4,245,957 Supporting Services: Management and general 82, ,856 15,915 1,05-706,086 Fundraising 42, ,475 Total Supporting Services 424, ,856 15,915 1,05-748,561 Total Program and Supporting Expenses 2,679, 2,124, ,242 1,05 (64,950) 4,994,518 (Continued) 1

196 WAKELAND HOUSING AND DEVELOPMENT CORPORATION SUPPLEMENTARY CONSOLIDATING SCHEDULE OF ACTIVITIES (CONTINUED) FOR THE YEAR ENDED JUNE 0, 2012 Wakeland Housing and Other Development Poinsettia Juniper Consolidated Corporation Parks, LLC Gardens, L.P. Companies Eliminations Consolidated Change in Unrestricted Net Assets $ (251,769) $ 598,97 $ (92,89) $ 215,772 $ (64,66) $ 105,681 Distributions - (195,705) - (168,661) 64,66 - Unrestricted Net Assets at Beginning of Year 6,611,701 2,60, ,67-9,48,52 UNRESTRICTED NET ASSETS AT END OF YEAR $ 6,59,92 $,0,687 $ (92,89) $ 15,478 $ - $ 9,454,204 2

197 $10,000 C /27/2012 9/27/201 X Certificate Department Cavignac & Associates B Street, Suite 1800 San Diego, CA certificates@cavignac.com License No. OA99520 WAKEL-1 PHILADELPHIA IND INS CO Wakeland Housing & Development ACE PROP & CAS INS CO Columbia St., Suite 950 San Diego, CA United States A PHPK /0/2012 6/0/201 1,000,000 X 100,000 X 5,000 1,000,000 2,000,000 2,000,000 X Deductible 0 A PHPK /0/2012 6/0/201 1,000,000 X X No Co Owned Autos A B X X X X PHUB8797 6/0/2012 6/0/201 5/10/201 10,000,000 10,000,000 1,000,000 1,000,000 1,000,000 For Informational Purposes. Specimen Certificate Matthew R. Slakoff Page 1 of 1 EXIGIS - CAVIGNAC & ASSOCIATES 22768

198 ATTACHMENT 5 Development Summary City Heights Ten (Scattered Sites) Summary Details Alta Vista Location rd Street, San Diego Council District 9 Community Planning Area City Heights Developer Wakeland Housing & Development Corporation Project Type Rehabilitation Housing Type Family Year Built 1985 Number of Units 12 Affordable Units 12 Lot Size 0.28 acres Gross Residential Square Footage 9,24 Retail Space None Construction Type Type V, surface parking Prevailing Wages No Financing Structure 4% Tax Credits/ Bonds Affordability Term 55 years Canyon Vista Location rd Street, San Diego Council District 9 Community Planning Area City Heights Developer Wakeland Housing & Development Corporation Project Type Rehabilitation Housing Type Family Year Built 1940 Number of Units 8 Affordable Units 8 Lot Size 0.22 acres Gross Residential Square Footage 6,76 Retail Space None Construction Type Type V, surface parking Prevailing Wages No Financing Structure 4% Tax Credits/ Bonds Affordability Term 55 years -1

199 Attachment 5: Development Summary City Heights Ten (Scattered Sites) Cornerstone Location 604 Van Dyke Avenue, San Diego Council District 9 Community Planning Area City Heights Developer Wakeland Housing & Development Corporation Project Type Rehabilitation Housing Type Family Year Built 198 Number of Units 7 Affordable Units 7 Lot Size 0.16 acres Gross Residential Square Footage 5,670 Retail Space None Construction Type Type V, surface parking Prevailing Wages No Financing Structure 4% Tax Credits/ Bonds Affordability Term 55 years Euclid Court Location 4217 Euclid Avenue, San Diego Council District 9 Community Planning Area City Heights Developer Wakeland Housing & Development Corporation Project Type Rehabilitation Housing Type Family Year Built 1946 Number of Units 11 Affordable Units 11 Lot Size 0.14 acres Gross Residential Square Footage 6,10 Retail Space None Construction Type Type V Prevailing Wages No Financing Structure 4% Tax Credits/ Bonds Affordability Term 55 years -2

200 Attachment 5: Development Summary City Heights Ten (Scattered Sites) Harmony Homes Location th Street, San Diego Council District 9 Community Planning Area City Heights Developer Wakeland Housing & Development Corporation Project Type Rehabilitation Housing Type Senior Year Built 1957 Number of Units 12 Affordable Units 12 Lot Size 0.14 acres Gross Residential Square Footage 5,040 Retail Space None Construction Type Type V, surface parking Prevailing Wages No Financing Structure 4% Tax Credits/ Bonds Affordability Term 55 years San Diego Apartments Location th Street, San Diego Council District 9 Community Planning Area City Heights Developer Wakeland Housing & Development Corporation Project Type Rehabilitation Housing Type Senior Year Built 1940 Number of Units 12 Affordable Units 11 Lot Size 0.14 acres Gross Residential Square Footage 5,648 Retail Space None Construction Type Type V, surface parking Prevailing Wages No Financing Structure 4% Tax Credits/ Bonds Affordability Term 55 years -

201 Attachment 5: Development Summary City Heights Ten (Scattered Sites) Sycamore Court Location ½ 48 th Street, San Diego Council District 9 Community Planning Area City Heights Developer Wakeland Housing & Development Corporation Project Type Rehabilitation Housing Type Family Year Built 1957 Number of Units 17 Affordable Units 16 Lot Size/Density 0.19 acres Gross Residential Square Footage 12,290 Retail Space None Construction Type Type V, surface parking Prevailing Wages No Financing Structure 4% Tax Credits/ Bonds Affordability Term 55 years Teralta Court Location Highland Avenue, San Diego Council District 9 Community Planning Area City Heights Developer Wakeland Housing & Development Corporation Project Type Rehabilitation Housing Type Family Year Built 1986 Number of Units 1 Affordable Units 1 Lot Size/Density 0.28 acres Gross Residential Square Footage 9,750 Retail Space None Construction Type Type V, surface parking Prevailing Wages No Financing Structure 4% Tax Credits/ Bonds Affordability Term 55 years -4

202 Attachment 5: Development Summary City Heights Ten (Scattered Sites) Village View Location rd Street, San Diego Council District 9 Community Planning Area City Heights Developer Wakeland Housing & Development Corporation Project Type Rehabilitation Housing Type Family Year Built 1985 Number of Units 0 Affordable Units 29 Lot Size 0.5 acres Gross Residential Square Footage 21,828 Retail Space None Construction Type Type V, surface parking Prevailing Wages No Financing Structure 4% Tax Credits/ Bonds Affordability Term 55 years West View Location 56 4 rd Street, San Diego Council District 9 Community Planning Area City Heights Developer Wakeland Housing & Development Corporation Project Type Rehabilitation Housing Type Family Year Built 1985 Number of Units 6 Affordable Units 6 Lot Size 0.1 acres Gross Residential Square Footage 4,014 Retail Space None Construction Type Type V, surface parking Prevailing Wages No Financing Structure 4% Tax Credits/ Bonds Affordability Term 55 years -5

203 Attachment 5: Development Summary City Heights Ten (Scattered Sites) Unit Affordability Property Alta Vista rd St. Canyon Vista rd St. Cornerstone 604 Van Dyke Ave. Euclid Ct Euclid Ave. Harmony Homes th St. San Diego Apts th St. Sycamore Ct /2 48th St. Teralta Ct Highland Ave. Village View rd St. West View 56 4rd St. Square Feet Unit Type AMI Number Net Restricted Rent Market Rent % Below Market Bed 50% 2 $87 $1, % Bed 60% 10 $1,055 $1, % Bed 50% 6 $862 $1, % Bed 60% 2 $1,044 $1, % Bed 50% 7 $87 $1, % 10 Studio 50% 2 $677 $ % 58 1-Bed 50% 8 $719 $ % 1,206 2-Bed 50% 1 $862 $1,20-4.7% Bed 50% 12 $727 $ % 297 Studio 50% 2 $688 $ % 61 1-Bed 50% 1 $722 $ % 61 1-Bed MGR 1 N/A N/A N/A 44 1-Bed 50% 1 $727 $97-25.% Bed 50% 15 $87 $1, % Bed MGR 1 N/A N/A N/A Bed 50% 4 $72 $1, % 79 2-Bed 50% 5 $87 $1, % 79 2-Bed 60% 1 $1,055 $1, % 896 -Bed 50% 1 $1,004 $1, % 896 -Bed 60% 2 $1,21 $1, % Bed 50% 6 $72 $1, % Bed 50% 17 $87 $1, % Bed MGR 1 N/A N/A N/A 1,024 -Bed 50% 6 $1,004 $1, % Bed 50% 1 $727 $ % Bed 50% 5 $87 $1, % Permanent Sources and Uses of Funds Sources of Funds Amount Uses of Funds Amount Tax Credits $ 4,865,881 Acquisition $ 8,928,719 Tax Exempt Bonds 4,518,420 Hard Costs,824,176 Income from Operations 15,09 Financing Costs 1,55,7 Transfer of Reserves 47,26 Soft Costs 976,246 GP Capital Contribution 42,000 Developer Fee 1,411,000 SDHC Loan Assumption 6,278,000 Total $16,69,87 Total $16,69,87-6

204 Attachment 5: Development Summary City Heights Ten (Scattered Sites) Cost Analysis Amount Per Unit Per S.F. Comments Acquisition Costs $8,928,719 $67,642 $104 - Hard Costs $,824,176 $28,971 $44 - Financing Costs $1,55,7 $11,771 $18 - Soft Costs $976,246 $7,96 $11 - Developer Fee $1,411,000 $10,689 $16 - Total Development Cost $16,69,87 $126,469 $194 - SDHC Loan $6,278,000 $47,560 $82 Existing loan (not including accrued interest to be paid) -7

205 City Heights CDC Rehab/Refi 4% TC RUN DATE: 11/20/1 201 Bond Sale 11:52 AM FORECAST ASSUMPTIONS ** Payment of 1% to SDHC Before 1st Lien Debt Service DEVELOPMENT SCHEDULE DEBT FINANCING ASSUMPTIONS Units for Rent 129 CONSTRUCTION LOAN: Manager's Units Construction Loan Interest Rate ** 4.000% Total Number of Units 12 Loan Fee 0.75% Density Per Acre 1.50 Acres Construction Start January 1, 2014 PERMANENT LOAN: Completion/Certificate of Occupancy September 1, 2014 Permanent Loan Rate *** 5.700% Construction Period (Months) 9 Months Permanent Loan Constant 7.0% Start of Leasing Loan Points and Fees 1.00% Units Leased per Month Debt Service Coverage Ratio Stabilized Occupancy December 1, 2014 Loan Underwriting Term (Years) 0 Lease-Up Period (Months) Maximum Loan to Value Ratio 80.00% Permanent Loan Takeout Capitalization Rate 5.75% Total Months - Const Start to Takeout Project Value (NOI/Cap Rate) 6,567,64 Maximum Loan to Cost Ratio % SOURCES AND USES OF FUNDS Cash Available for Debt Service (NOI) 77,69 Loan to Value Ratio (restricted) NA per unit Construction Permanent Final Perm. Permanent Loan 4,518,420 USES: Annual Payment 14,699 Actual DSC Acquisition Costs $67,642 8,928,719 8,928,719 8,928,719 OTHER DEBT/LOANS: SDHC Loan Design & Engineering $, ,80 407,80 407,80 Interest Rate.00% Legal/Financial/Other Consultants $2, , , ,000 Loan Points and Fees 1.000% Permits & Fees $414 54,600 54,600 54,600 Loan Term (Years) 55 Bridge Loan Interest $ Direct Building Construction $25,752,99,268,99,268,99,268 TAX CREDIT FINANCING ASSUMPTIONS Financing Costs $11, ,186 1,55,7 1,55,7 Marketing/General & Administrative $1, , , ,000 Credit Year 2014 Developer Fees $10, ,400 1,411,000 1,411,000 Federal Tax Credit Rate.20% Hard Cost Contingency $, , , ,908 State Tax Credit Rate 0.00% Soft Cost Contingency $612 80,816 80,816 80,816 Difficult to Develop % 10.00% Total Project Uses $126,469 $15,27,226 $16,69,87 $16,69,87 Applicable Fraction % Adjusted Eligible Basis 8,771,26 SOURCES: Annual Tax Credits 501,160 Investor Yield on 99% of Total Credit Allocation 98.00% Tax Credit Equity 6,86 $486,588 $4,865,881 $4,865,881 Gross Investor Contribution to Lower Tier Tax- Exempt Bonds (Permanent Loan) 4,20 0 4,518,420 4,518,420 Deferred Pay-In on Tax Credit Equity 0 Deferred Interest on Soft City Debt Income from Operations 1, ,09 15,09 SALES TRANSACTION AND PAYMENTS TO SDHC Construction Loan 60,601 7,999, Transfer of Reserves,585 47,26 47,26 47,26 Total SDHC Loans (as of 5/201) 7,059,000 GP Capital Contribution, ,000 42,000 SDHC Loan Assumption 47,561 6,278,000 6,278,000 6,278,000 Private Banks Loans 1,854,719 Gap/Deferred Developer Fee SDHC Loan Prepayment 781,000 Input SDHC Loan Assumption 6,278,000 Total Project Sources $187,070 $15,27,226 $16,69,87 $16,69,87 Total Purchase Price 8,91,719 Total Max. Bonds 7,999, % Total Funds to SDHC at Close Bridge Loan,480,955 Interest Paydown 781,000 Origination Fee 61,980 RESIDENTIAL UNIT MIX/AFFORDABILITY ANALYSIS Bond Issuer Fee 19, ,978 Studios 1BR/1BA 2BR/2BA BR/1.5BA 4BR/1.5BA Total Units % of TC Income OTHER ASSUMPTIONS 5% % 50% % Property Taxes: 60% % Tax Rate 1.25% 70% Existing Property Basis (per unit) 0 Mgr New Unit Basis (per unit) 51.2% Ground Lease: Total Return on Ground Lease 0.00% % 0.0% 5.7% 56.6% 7.0% 0.0% Inflation Indexes: $ psf Income Inflator (Yrs 2-5).00% Sq. Ft./Unit Na 0 Income Inflator 2.50% Total Resid Expense Inflator.50% Sq Ft #REF! 0 0 #REF! Real Estate Tax Inflator 2.00%

206 CONSTRUCTION SOURCES AND USES OF FUNDS Tax-Exempt Bonds (Construction Loan) Tax Credit Equity Transfer of Reserves Costs Deferred to Conversion SDHC Loan Assumption USES: Total Total Acquisition Costs 8,928,719 Private Banks Loans 1,854,719 1,854,719 SDHC Loan Prepayment 781,000 07,77 47,26 SDHC Loan Assumption 6,278,000 6,278,000 Escrow & Title Acquisition 15,000 15,000 Design & Engineering 407,80 407,80 Legal/Financial/Other Consultants 279, , ,000 12,500 Permits & Fees 54,600 54,600 Direct Building Construction,99,268,99,268 Financing Costs 1,55,7 896,5 59, ,547 Marketing/General & Administrative 154, ,000 Developer Fees 1,411, , ,600 Hard Cost Contingency 424, ,908 Soft Cost Contingency 80,816 80,816 Total Project Uses 16,69,874 TOTAL SOURCES: 16,69,874 7,999,76 486,588 47,26 1,456,647 6,278,000

207 City Heights CDC Rehab/Refi DEVELOPMENT COST BUDGET CONSTRUCTION SOURCES COST Amort Permanent Construction CODE DESCRIPTION Per. Footnotes Budget BUDGET At Closing 1 2 Private Banks Loans 1,854,719 1,854,719 1,854,719 SDHC Loan Prepayment 781, , ,000 SDHC Loan Assumption 6,278,000 6,278,000 6,278, Escrow & Title- Acquisition Phase 1 15,000 15,000 15,000 0 Payment to Adjacent Property Owner for Encroachment Property Maintenance During Predevelopment Broker fees LAND ACQUISITION & CLOSING 8,928,719 8,928,719 8,928, Architect/Landscape Architect 1 40,000 40,000 6, Design/Landscape Arch-Const Observation Civil Engineer Structural Engineer (PML + Seismic Upgrade) 1 20,000 20,000 20, Construction Mgr , , ,667 16, Surveying 1 85,000 85,000 85, Environmental (Phase I + HERS Rater) 1 62,0 62,0 62,0 0 0 PNA Consultant 1 20,500 20,500 20, Other Consultants 9 Months Reimburseable Exp's-Pre-Dev't 1 20,000 20,000 20, Reimburseable Exp's-Construction 9 Months 10,000 10,000 1,667 1, Contingency 5.00% 20,448 20,448 12, DESIGN & ENGINEERING 428, , ,078 19,950 19, Legal-Project Development 1 70,000 70,000 70, Legal - San Diego Housing Commission 1 25,000 25,000 25, Legal-Bond Counsel 1 5,000 5,000 5, Legal-Tax Credit & Bonds (GP) 1 50,000 50,000 50, Legal - Bond Purchaser 0 50,000 50,000 50, SDHC Financial Advisor 1 4,000 4,000 4, Accounting & Auditing 0 15,000 2,500 2, Contingency 5.00% 1,25 1,25 1, LEGAL/FINANCIAL/OTHER 292,25 279, , Permits & Fees $ ,600 9,600 9, Testing & Inspections 15,000 15, ,667 1, Developer Peformance Bonds Prevailing Wage Monitoring Consultant Contingency 5.00% 2,70 2,70 1, PERMITS/BONDS/FEES 57,0 57,0 41,580 1,750 1, Off-Site Imp's/Infrastructure On-Site Imp's & termite treatment Below Contingency 15.00% SITE IMP'S/INFRASTRUCTURE Building Rehab. Costs $18,624 /pu 2,458,418 2,458,418 27,158 Seismic Retrofit 50,000 50,000 8,889 Energy Efficiency Measures (PV/LED Light Fixtures etc.) 77,500 77,500 8,611 Sycamore Court CDLAC Required Additional Rehab 84,1 84,1 9, General Conditions 6.00% 9 Months 156, ,050 17, Contractor Bonds and Insurance 2.56% 9 Months 64,920 64,920 7, Contractor's Fee & Overhead 8.00% 9 Months 208, ,067 2, Contingency 15.10% 12.50% 424, , ,212 DIRECT CONSTRUCTION $28,971 avg. per unit,824,176,824, ,908 2,808,418,99, Construction Interest 22,92 22, San Diego Housing Commission loan origination fee (1%) 6,198, ,980 61,980 61, Constr.Lender Due Diligence & Cost Review 1 46,750 46,750 40, Relocation 9 Months 26,800 26, , Construction Lender Fee 1 59,995 59,995 59, Escrow/Title Fees-Construction Loan 1 20,000 20,000 20, Permanent Loan Points 1 45,184 45,184 45, Permanent Loan Conversion Costs 1 1, Permanent Loan Appraisal, Environ. Review, PNA, etc Bond Commitment Deposit 2.00% Asset Mgmt. / Oversight Fee First Year CHCDC Resident Services 0,000 0,000 2,500 2,500 Other Bond Issuer Fee 0.25% 19,998 19,998 19, Escrow/Title Fees-Permanent Loan Construction Period Insurance 1.5% 1 57,6 57,6 57,6 0 Earthquake Insurance 0 Bond Lag Deposit 9 Months Capitalized Replacement Reserve 1 $450 19, Capitalized Operating Reserve 1 550, Reserve for Resident Services $ Property Taxes 1 1,185 1,185 6, Impound Taxes/Insurance CDLAC Filing Fees 1 2,800 2,800 2, CTCAC Application + Reservation Fees 7,011 7,011 7, CDLAC Performance Deposit 4.00% 1 0 9,997 9,997 0 CDIAC Reporting Fee 1,200 1,200 1, CTCAC Monitoring Fee $ , Contingency 5.00% 1 6,61 6,61 18, ,978 FINANCING COSTS 1,590,46 992,799 80,227 2,625 41, Furnishings & signage 1 10,000 10, Lease-Up/Advertising Expenses 1 12,000 12, Market Study 1 6,000 6,000 6,000 0 Developer Appraisal 6,000 6,000 6, Syndicator Security 120, , ,000 12,000 Prevailing Wage Monitor Contingency 5.00% 0 7,700 7, MARKETING/GEN & ADMIN 161, ,700 12,600 12,600 12,600 Bridge Loan Interest - Wells DEVELOPER FEES 9.26% 1,411, , ,400 0 TOTAL PROJECT COSTS 126,469 16,69,87 15,27,226 10,46,428 6, ,748 SOURCES OF FUNDS - CONSTRUCTION PERIOD 0 1,456, Tax Credit Equity 0 486, ,588 0 City Subsidy Project Income Deferred Interest on City Soft Debt Transfer of Reserves 0 47,26 47, State HCD SDHC Loan Assumption 6,278,000 6,278,000 Beginning Construction Loan Balance,225,577,27,254 Bond Proceeds Draw 7,775,45,225,577 6, ,748 Construction Interest 22, % 10,752 10, $0 0 0 Ending Construction Loan Balance 7,999,75 7,999,75,225,577,27,254,784,912 TOTAL CONSTRUCTION SOURCES OF FUNDS 15,27,226 10,46,428 6, ,748 Expensed Interest 77,797 0

208 City Heights CDC Rehab/Refi DEVELOPMENT COST BUDGET S AND USES ANALYSIS COST CODE DESCRIPTION Private Banks Loans SDHC Loan Prepayment SDHC Loan Assumption Escrow & Title- Acquisition Phase Payment to Adjacent Property Owner for Encroachment Property Maintenance During Predevelopment Broker fees LAND ACQUISITION & CLOSING Architect/Landscape Architect Design/Landscape Arch-Const Observation Civil Engineer Structural Engineer (PML + Seismic Upgrade) Construction Mgr Surveying Environmental (Phase I + HERS Rater) PNA Consultant Other Consultants Reimburseable Exp's-Pre-Dev't Reimburseable Exp's-Construction Contingency 5.00% DESIGN & ENGINEERING Legal-Project Development Legal - San Diego Housing Commission Legal-Bond Counsel Legal-Tax Credit & Bonds (GP) Legal - Bond Purchaser SDHC Financial Advisor Accounting & Auditing Contingency 5.00% LEGAL/FINANCIAL/OTHER Permits & Fees $ 00 Testing & Inspections Developer Peformance Bonds Prevailing Wage Monitoring Consultant Contingency 5.00% PERMITS/BONDS/FEES Off-Site Imp's/Infrastructure On-Site Imp's & termite treatment Below Contingency 15.00% SITE IMP'S/INFRASTRUCTURE Building Rehab. Costs $18,624 Seismic Retrofit Energy Efficiency Measures (PV/LED Light Fixtures etc.) Sycamore Court CDLAC Required Additional Rehab General Conditions 6.00% Contractor Bonds and Insurance 2.56% Contractor's Fee & Overhead 8.00% Contingency 15.10% DIRECT CONSTRUCTION $28,971 2,808,418,99, Construction Interest San Diego Housing Commission loan origination fee (1%) 6,198, Constr.Lender Due Diligence & Cost Review Relocation Construction Lender Fee Escrow/Title Fees-Construction Loan Permanent Loan Points Permanent Loan Conversion Costs Permanent Loan Appraisal, Environ. Review, PNA, etc. Bond Commitment Deposit 2.00% Asset Mgmt. / Oversight Fee First Year CHCDC Resident Services Other Bond Issuer Fee 0.25% Escrow/Title Fees-Permanent Loan Construction Period Insurance 1.5% Earthquake Insurance Bond Lag Deposit Capitalized Replacement Reserve Capitalized Operating Reserve Reserve for Resident Services $ Property Taxes Impound Taxes/Insurance CDLAC Filing Fees CTCAC Application + Reservation Fees CDLAC Performance Deposit 4.00% CDIAC Reporting Fee CTCAC Monitoring Fee $ Contingency 5.00% FINANCING COSTS Furnishings & signage Lease-Up/Advertising Expenses Market Study Developer Appraisal Syndicator Security Prevailing Wage Monitor Contingency 5.00% MARKETING/GEN & ADMIN Bridge Loan Interest - Wells DEVELOPER FEES 9.26% TOTAL PROJECT COSTS 126, ,667 16,667 16,667 16,667 16,667 16,667 16, ,667 1,667 1,667 1, ,950 19,950 19,950 19,950 17,500 17,500 17, ,667 1,667 1,667 1,667 1,667 1,667 1, ,750 1,750 1,750 1,750 1,750 1,750 1, ,158 27,158 27,158 27,158 27,158 27,158 27,158 27,158 8,889 8,889 8,889 8,889 8,889 8,889 8,889 8,889 8,611 8,611 8,611 8,611 8,611 8,611 8,611 8,611 9,68 9,68 9,68 9,68 9,68 9,68 9,68 9,68 17,9 17,9 17,9 17,9 17,9 17,9 17,9 17,9 0 7,21 7,21 7,21 7,21 7,21 7,21 7,21 7,21 0 2,119 2,119 2,119 2,119 2,119 2,119 2,119 2, ,212 47,212 47,212 47,212 47,212 47,212 47,212 47, , , , , , , , , ,11 6,11 6,11 6,11 6,11 6,11 6,11 6, ,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2, , ,978 1,978 1,978 1,978 1,978 2,08 1,978 1, ,59 41,59 41,59 41,59 41,59 48,461 41,59 41,59 2, ,000 5, ,000 4,000 4, ,000 12,000 12,000 12,000 12,000 12,000 12,000 12, ,050 1, ,600 12,600 12,600 12,600 12,600 16,800 22,050 22, , , , , , , , ,498 2,625 SOURCES OF FUNDS - CONSTRUCTION PERIOD Tax Credit Equity 0 City Subsidy 0 Project Income Deferred Interest on City Soft Debt 0 Transfer of Reserves 0 State HCD 0 SDHC Loan Assumption Beginning Construction Loan Balance Bond Proceeds Draw 7,775,45 Construction Interest 22,92 0 Ending Construction Loan Balance 7,999,75 TOTAL CONSTRUCTION SOURCES OF FUNDS ,784,912 4,298,276 4,81,51 5,0,14 5,848,658 6,66,451 6,897,09 7,427,81 7,941, , , , , , , , ,498 2,625 12,616 14,28 16,045 17,767 19,496 21,222 22,990 24,759 26, ,298,276 4,81,51 5,0,14 5,848,658 6,66,451 6,897,09 7,427,81 7,941,088 7,970,18 500, , , , , , , ,498 2,625 Expensed Interest 77,797

209 City Heights CDC Rehab/Refi DEVELOPMENT COST BUDGET COST CODE DESCRIPTION TOTAL Private Banks Loans SDHC Loan Prepayment SDHC Loan Assumption Escrow & Title- Acquisition Phase Payment to Adjacent Property Owner for Encroachment Property Maintenance During Predevelopment Broker fees LAND ACQUISITION & CLOSING Architect/Landscape Architect Design/Landscape Arch-Const Observation Civil Engineer Structural Engineer (PML + Seismic Upgrade) Construction Mgr Surveying Environmental (Phase I + HERS Rater) PNA Consultant Other Consultants Reimburseable Exp's-Pre-Dev't Reimburseable Exp's-Construction Contingency 5.00% DESIGN & ENGINEERING Legal-Project Development Legal - San Diego Housing Commission Legal-Bond Counsel Legal-Tax Credit & Bonds (GP) Legal - Bond Purchaser SDHC Financial Advisor Accounting & Auditing Contingency 5.00% LEGAL/FINANCIAL/OTHER Permits & Fees $ 00 Testing & Inspections Developer Peformance Bonds Prevailing Wage Monitoring Consultant Contingency 5.00% PERMITS/BONDS/FEES Off-Site Imp's/Infrastructure On-Site Imp's & termite treatment Below Contingency 15.00% SITE IMP'S/INFRASTRUCTURE Building Rehab. Costs $18,624 Seismic Retrofit Energy Efficiency Measures (PV/LED Light Fixtures etc.) Sycamore Court CDLAC Required Additional Rehab General Conditions 6.00% Contractor Bonds and Insurance 2.56% Contractor's Fee & Overhead 8.00% Contingency 15.10% DIRECT CONSTRUCTION $28,971 2,808,418,99, Construction Interest San Diego Housing Commission loan origination fee (1%) 6,198, Constr.Lender Due Diligence & Cost Review Relocation Construction Lender Fee Escrow/Title Fees-Construction Loan Permanent Loan Points Permanent Loan Conversion Costs Permanent Loan Appraisal, Environ. Review, PNA, etc. Bond Commitment Deposit 2.00% Asset Mgmt. / Oversight Fee First Year CHCDC Resident Services Other Bond Issuer Fee 0.25% Escrow/Title Fees-Permanent Loan Construction Period Insurance 1.5% Earthquake Insurance Bond Lag Deposit Capitalized Replacement Reserve Capitalized Operating Reserve Reserve for Resident Services $ Property Taxes Impound Taxes/Insurance CDLAC Filing Fees CTCAC Application + Reservation Fees CDLAC Performance Deposit 4.00% CDIAC Reporting Fee CTCAC Monitoring Fee $ Contingency 5.00% FINANCING COSTS Furnishings & signage Lease-Up/Advertising Expenses Market Study Developer Appraisal Syndicator Security Prevailing Wage Monitor Contingency 5.00% MARKETING/GEN & ADMIN Bridge Loan Interest - Wells DEVELOPER FEES 9.26% TOTAL PROJECT COSTS 126, , ,928, , , , , , , , , , , , , , , , , , , , , , , ,458,418 50,000 77,500 84, , , , ,908 0,824,176 22, , , , , , , ,500 0, , , , , , ,61 2, ,588 10,000 12, , , , , ,400 2, ,22,015 SOURCES OF FUNDS - CONSTRUCTION PERIOD Tax Credit Equity 0 City Subsidy 0 Project Income Deferred Interest on City Soft Debt 0 Transfer of Reserves 0 State HCD 0 SDHC Loan Assumption Beginning Construction Loan Balance Bond Proceeds Draw 7,775,45 Construction Interest 22,92 0 Ending Construction Loan Balance 7,999,75 TOTAL CONSTRUCTION SOURCES OF FUNDS 0 486, ,26 0 7,970,18 2, ,775,45 26, , ,999,75 0 7,999,75 2,625 15,01,04 Expensed Interest 77,797

210 City Heights CDC Rehab/Refi RUN DATE: 11/20/1 ELIGIBLE BASIS CALCULATION % 0.00% NON- DEPRECIABLE BASIS DEVELOPMENT COSTS TOTAL PER UNIT DEPRECIABLE RESIDENTIAL NON-RESDNT AMORTIZED EXPENSED Acquistion Cost 8,790,000 Land Cost 1,900,000 14,94 1,900, Building 6,890,000 52,197 6,890,000 Legal/Title 15, , Broker Fees Total Land Costs 8,805,000 66,705 1,915,000 6,890, Total Acquisition Costs Rehabilitation Site Work Structures 2,970,21 22, ,970, Contractor Overhead (inc insurance + bonds) 220,970 1, , Contractor Profit 208,067 1, , Construction Manager 150,000 1, , Construction Security 120, , Total New Rehab Costs,669,268 27,797 0,669, Architectural Fees Design & Reimbursables 60, , Supervision Total Architectural Costs 60, , Total Survey & Engineering Costs 15,500 1, , Construction Interest and Fees SDHC Origination Fee 61, , ,495 Construction Loan Interest 22,92 1, , ,797 Construction Loan Origination Fee 59, , Construction Lender Cost Review + Inspections 46, , Property Taxes 1, , Construction Period Insurance 57, ,6 0 0 Construction Loan Title & Recording 20, , Total Construction Interest & Fees 48,196, , ,292 Permanent Financing Perm Loan Origination Fee + Conv Costs 59, ,074 0 Bond Issuer fee + SDHC FA 5, ,998 0 Bridge Loan Interest Other Bond fees 0 0 Trustee Fee Total Permanent Financing Costs 11, ,07 0 Legal Fees Legal Costs (Const Loan+ Project Related) 95, , Other (Tax Credits) 100, , Total Attorney Costs 195,000 1, ,000 95, Developer Appraisal 6, , Reserves Operating Reserves 550,964 4, , Capitalized Replacement Reserve 19, , Total Reserve Costs 570,764 4,24 570, Total Construction Contingency Costs 424,908, , Other TCAC App./Reserv./Monitoring Fees 59, ,901 CDLAC, CDIAC Fees 4, ,000 Environmental Audit/Toxic Remediation 62, , Local Permit Fees 54, , Marketing+ Market Study 18, , ,000 Resident Services During Construction 0, ,000 Furnishings 10, , Relocation 26,800 2, , Soft Cost Contingency 80, , Legal - Bond Counsel 5, ,000 0 Syndicator Total Other Costs 681,446 5, , , ,901 Sub-Total Residential Costs 15,144, ,728 2,585,764 12,211, , ,19 Developer Costs Developer Overhead/Profit 1,411,000 10, ,411, Consultant/Processing Agent Fees Accounting & Audit 15, , Other Total Developer Costs 10.46% 1,426,000 10,80 0 1,426, Total Project Costs 16,570, ,51 2,585,764 1,67, , ,19

211 City Heights CDC Rehab/Refi RUN DATE: 11/20/1 TAX CREDIT CALCULATIONS Federal Acquisition Tax Credits Tax Credits Total Preliminary Eligible Basis 6,747,126 6,890,000 Deductions from Eligible Basis: Grant Proceeds Used to Finance Costs in Eligible Basis 0 0 Federal Loans Used to Finance Costs in 9% Eligible Basis 0 0 Non-Qualified Non-Recourse Financing 0 0 Non-Qualifying Portion of Higher Quality Units 0 0 Historic Credit (Residential Portion Only) 0 0 Total Deductions from Eligible Basis 0 0 Total Eligible Basis 6,747,126 6,890,000 1,67,126 High Cost Area Adjustment 10.00% % 1,411,000 1,411,000 Total Adjusted Eligible Basis 8,771,26 6,890, % Applicable Fraction % % Total Qualified Basis 8,771,26 6,890,000 Tax Credit %.20%.20% Total Annual Tax Credits 280, , ,160,027,284 LP Share of Credits % % Credits Available to Equity Provider 280, , ,110 5,011,10 Credit Period Total Credit Allocation 2,806,524 2,204,580 5,011,10 Investor Yield Gross Investor Contribution 2,750,9 2,160,488 4,910,881 Less Lower Tier Syndication Expenses: Legal - Syndication 45, ,000 Syndication Consulting Syndication Accounting Total Syndication Expenses 45, ,000 Total Investor Contribution 2,705,9 2,160,488 4,865,881 % Investor Contribution 96.40% 98.00% 97.10%

212 RENT INCREASE ANALYSIS CHCDC PROPERTIES Property AMI Program BD Type # Units SDHC 2012 Max. Rent Limits HOME Rents First 2 MonthsEffective 9/1/201 Total Income 2 Months Rental Income Rents Monthly Annual Alta Vista 60% AMI RTC/HOME 2 BD $ 952 $ 11,424 $ 17,088 Canyon Vista 50% AMI HOME 2 BD $ 87 $ 6,984 $ 8,808 Cornerstone 50% AMI HOME 2 BD $ 87 $ 6,111 $ 7,2 Euclid Court 50% AMI HOME Studio $ 595 $ 595 $ 7,140 50% AMI HOME Studio $ 656 $ 656 $ 7,872 50% AMI HOME 1 BD $ 75 $ 5,880 $ 70,560 50% AMI HOME 2 BD $ 884 $ 884 $ 10,608 Harmony 50% AMI HOME 1 BD $ 570 $ 6,270 $ 75,240 50% AMI HTF 1 BD $ 570 $ 570 $ 6,840 San Diego 5% AMI HTF/CUP Studio $ 455 $ 910 $ 10,920 5% AMI HTF/CUP 1 BD $ 526 $ 6,88 $ 82,056 5% AMI Exempt 1 BD $ 526 $ 526 $ 6,12 Sycamore 50% AMI HOME 1 BD $ 711 $ 711 $ 8,52 50% AMI HOME 2 BD $ 87 $ 7,857 $ 94,284 50% AMI HOME 2 BD $ 87 $ 87 $ 10,476 50% AMI HTF 2 BD $ 86 $ 4,15 $ 51,780 50% AMI Exempt 2 BD $ 86 $ 86 $ 10,56 Teralta Court 50% AMI HOME 1 BD $ 725 $ 2,900 $ 4,800 50% AMI HOME 2 BD $ 86 $ 5,178 $ 62,16 60% AMI HOME BD $ 1,046 $,18 $ 7,656 Village View 50% AMI HTF 1 BD $ 740 $ 2,960 $ 5,520 50% AMI HOME 1 BD $ 740 $ 1,480 $ 17,760 50% AMI HOME 2 BD $ 874 $ 6,118 $ 7,416 50% AMI HTF 2 BD $ 874 $ 8,740 $ 104,880 50% AMI Exempt 2 BD $ 874 $ 874 $ 10,488 50% AMI HOME BD $ 1,00 $ 1,00 $ 12,06 50% AMI HOME BD $ 1,00 $ 1,00 $ 12,06 50% AMI HTF BD $ 964 $,856 $ 46,272 West View 50% AMI HOME 1 BD $ 658 $ 658 $ 7,896 50% AMI HOME 2 BD $ 846 $ 4,20 $ 50,760 TOTAL INCOME ,66 $ 104,405 $ 1,252,860

213 City Heights CDC Refinanace Portfolio 2014 Rents and Unit Mix Property Unit Type Number AMI Lowest Rent Method Gross Rent UA Net Rent Monthly Income Annual AltaVista Two Bedroom 2 50% TCAC ,746 20,952 AltaVista Two Bedroom 10 60% TCAC 1, ,055 10, ,600 Canyon Vista Two Bedroom 6 50% TCAC ,172 62,064 Canyon Vista Two Bedroom 2 60% TCAC 1, ,044 2,088 25,056 Cornerstone Two Bedroom 7 50% TCAC ,111 7,2 Euclid Court Studio 2 50% TCAC ,54 16,248 Euclid Court One Bedroom 8 50% TCAC ,752 69,024 Euclid Court Two Bedroom 1 50% TCAC ,44 Harmony Homes One Bedroom 12 50% TCAC , ,688 San Diego Apts Studio 2 5% TCAC ,424 San Diego Apts One Bedroom 7 5% TCAC ,542 42,504 San Diego Apts One Bedroom 6 50% TCAC ,98 52,776 San Diego Apts One Bedroom 1 MGR MGR 526 N/A ,12 Sycamore Court One Bedroom 1 50% TCAC ,724 Sycamore Court Two Bedroom 15 50% TCAC , ,140 Sycamore Court Two Bedroom 1 MGR MGR 86 N/A ,56 Teralta Court One Bedroom 4 50% TCAC ,928 5,16 Teralta Court Two Bedroom 5 50% TCAC ,65 52,80 Teralta Court Three Bedroom 1 50% SDHC Bond Rent 1, ,568 Teralta Court Two Bedroom 1 60% TCAC 1, ,055 1,055 12,660 Teralta Court Three Bedroom 2 60% SDHC Bond Rent 1, ,165 2,0 27,960 Village View One Bedroom 6 50% TCAC ,92 52,704 Village View Two Bedroom 17 50% TCAC , ,092 Village View Three Bedroom 6 50% SDHC Bond Rent 1, ,784 69,408 Village View Two Bedroom 1 MGR MGR 874 N/A ,488 WestView One Bedroom 1 50% TCAC ,724 WestView Two Bedroom 5 50% TCAC ,65 52,80 Total ,087 1,09,044

214 City Heights CDC Rehab/Refi 201 Bond Sale 1% to SDHC PROJECT CASH FLOW Tax Credit Rents 2014 YEAR Base Year RENTAL REVENUES: (Constr) Gross Potential Rent (Affordable Units) 1,252,860 1,252,860 1,290,446 1,29,159 1,69,04 1,410,105 1,452,408 1,488,718 1,525,96 1,564,084 Laundry/Vending/Other $9.47 pupm 15,000 15,000 15,75 15,759 16,15 16,557 16,971 17,95 17,80 18,276 Vacancy Allowance Rehab Period 5.00% /yr (44,751) Vacancy Allowance 5.00% /yr (6,9) (65,291) (67,246) (69,259) (71,) (7,469) (75,06) (77,188) (79,118) Net Rental Income 824,109 1,204,467 1,240,50 1,277,672 1,15,928 1,55,29 1,95,910 1,40,807 1,466,578 1,50,242 Resident Services 0.00% /yr 0 0,000 0,900 1,827 2,782,765 4,778 5,822 6,896 8,00 SDHC Monitoring.5% $ pu avg. 19,800 19,800 20,49 21,210 21,95 22,721 2,516 24,9 25,191 26,07 Bond Issuer's Fee 0.125% 0 5,648 5,648 5,648 5,648 5,648 5,648 5,648 5,648 5,648 SDHC 1% Payment On Debt 7,059,000 (781,000) 0 62,780 66,448 68,665 70,940 7,27 75,667 78,122 80,658 8,279 TOTAL Other FIXED COSTS (per CDC 5, , , , , ,72 767,69 794, ,72 851, ,945 TOTAL OPERATING COSTS *** $5,964 /unit 688, , , ,000 87,055 90,100 94, ,0 999,548 1,0,948 NET OPERATING INCOME: 15,09 417,29 424,626 4, ,87 452, ,79 464, ,00 469,294 Less: Income from Operations 15,09 CASH FLOW FROM OPERATIONS: Net Operating Income 0 417,29 424,626 4, ,87 452, ,79 464, ,00 469, Replacement Reserve $00 0 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 CASH FLOW AVAILABLE FOR DEBT SERVICE 0 77,69 85,026 94,072 40,27 412, ,19 424, ,40 429,694 Debt Service - First Trust Deed 4,518, (14,699) (14,699) (14,699) (14,699) (14,699) (14,699) (14,699) (14,699) (14,699) Cash Flow After Debt Service 0 62,940 70,27 79,7 88,574 97, , , ,70 114,995 General Partner Asset Mgt Fee.00% 0 (25,000) (25,750) (26,52) (27,18) (28,18) (28,982) (29,851) (0,747) (1,669) Limited Partner Asset Mgmt. Fee.00% 0 (5,000) (5,150) (5,05) (5,464) (5,628) (5,796) (5,970) (6,149) (6,4) % CASH FLOW AVAILABLE 0 2,941 9,429 47,547 55,79 64,165 72,66 74,85 75,86 76,99 Resident services fee below the line 0 0,000 0,900 1,827 2,782,765 4,778 5,822 6,896 8,00 Cash Flow Split to CHCDC 0 2,206 6,96 11,790 17,259 22,800 28,41 28,92 29,205 29,242 CASH FLOW TO CHCDC 2,206 7,296 4,617 50,041 56,565 6,192 64,744 66,101 67,245 Cash Flow to SDHC ,12,90 5,75 7,600 9,471 9,641 9,75 9,747 SDHC LOAN REPAYMENT Compound Periods Beginning Principal Amount 1 6,278,000 6,489,569 6,644,752 6,866,548 7,094,021 7,27,6 7,566,667 7,812,19 8,065,82 8,27,906 Current Year Interest AFR 211, ,698 22,928 21,40 29, ,91 254,997 26, , ,650 Current Year Payment from Cash Flow.7% 0 (75) (2,12) (,90) (5,75) (7,600) (9,471) (9,641) (9,75) (9,747) (62,780) (66,448) (68,665) (70,940) (7,27) (75,667) (78,122) (80,658) (8,279) Ending Balance 6,489,569 6,644,752 6,866,548 7,094,021 7,27,6 7,566,667 7,812,19 8,065,82 8,27,906 8,598,809

215 City Heights CDC Rehab/Refi PROJECT CASH FLOW RENTAL REVENUES: Gross Potential Rent (Affordable Units) Laundry/Vending/Other Vacancy Allowance Rehab Period Vacancy Allowance Net Rental Income 201 Bond Sale Tax Credit Rents ,60,186 1,64,266 1,684,48 1,726,457 1,769,618 1,81,858 1,859,204 1,905,684 1,95,26 2,002,159 2,052,21 2,10,518 2,156,106 18,7 19,201 19,681 20,17 20,677 21,194 21,724 22,267 22,824 2,95 2,980 24,580 25,195 (81,096) (8,12) (85,201) (87,2) (89,515) (91,75) (94,046) (96,98) (98,808) (101,278) (10,810) (106,405) (109,065) 1,540,82 1,579,44 1,618,828 1,659,298 1,700,780 1,74,299 1,786,882 1,81,55 1,877,42 1,924,276 1,972,8 2,021,69 2,072,26 Resident Services 0 SDHC Monitoring.5% Bond Issuer's Fee SDHC 1% Payment On Debt 7,059,000 TOTAL Other FIXED COSTS (per CDC 5,068 TOTAL OPERATING COSTS *** NET OPERATING INCOME: 9,14 40,17 41,527 42,77 44,056 45,78 46,79 48,141 49,585 51,07 52,605 54,18 55,809 26,985 27,90 28,907 29,919 0,966 2,050,172 4, 5,55 6,778 8,066 9,98 40,777 5,648 5,648 5,648 5,648 5,648 5,648 5,648 5,648 5,648 5,648 5,648 5,648 5,648 85,988 88,789 91,591 94,492 97, ,614 10, , , ,08 118,07 121, , ,778 94, ,720 1,010,905 1,046,287 1,082,907 1,120,808 1,160,07 1,200,68 1,242,660 1,286,15 1,1,169 1,77,760 1,069,54 1,106,75 1,144,9 1,18,77 1,224,455 1,266,597 1,10,214 1,55,61 1,402,09 1,450,467 1,500,545 1,552,89 1,606, , , ,45 475, ,25 476, , , ,249 47, ,88 469,04 466,174 Less: Income from Operations CASH FLOW FROM OPERATIONS: Net Operating Income Replacement Reserve CASH FLOW AVAILABLE FOR DEBT SERVICE Debt Service - First Trust Deed Cash Flow After Debt Service General Partner Asset Mgt Fee Limited Partner Asset Mgmt. Fee CASH FLOW AVAILABLE Resident services fee below the line Cash Flow Split to CHCDC CASH FLOW TO CHCDC Cash Flow to SDHC SDHC LOAN REPAYMENT Beginning Principal Amount Current Year Interest Current Year Payment from Cash Flow Ending Balance 471, , ,45 475, ,25 476, , , ,249 47, ,88 469,04 466, ,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 41,680 4,69 44,85 45,961 46,725 47,102 47,068 46,592 45,649 44,209 42,28 429, ,574 (14,699) (14,699) (14,699) (14,699) (14,699) (14,699) (14,699) (14,699) (14,699) (14,699) (14,699) (14,699) (14,699) 116, , ,16 121, , ,40 122,69 121,89 120, , ,59 115, ,875 (2,619) (,598) (4,606) (5,644) (6,71) (7,815) (8,949) (40,118) (41,21) (42,561) (4,88) (45,15) (46,507) (6,524) (6,720) (6,921) (7,129) (7,4) (7,56) (7,790) (8,024) (8,264) (8,512) (8,768) (9,01) (9,01) 77,89 78,54 78,610 78,490 77,971 77,027 75,60 7,752 71,65 68,46 64,9 60,822 56,066 9,14 40,17 41,527 42,77 44,056 45,78 46,79 48,141 49,585 51,07 52,605 54,18 55,809 29,022 19,018 18,541 17,859 16,958 15,825 14,445 12,805 10,890 8,682 6,164, ,165 59,6 60,068 60,61 61,014 61,202 61,184 60,947 60,475 59,755 58,769 57,50 55,98 9,674 19,018 18,541 17,859 16,958 15,825 14,445 12,805 10,890 8,682 6,164, ,598,809 8,878,915 9,159,117 9,449,27 9,749,818 10,061,429 10,84,675 10,720,19 11,068,658 11,40,782 11,807,18 12,199,061 12,606, , ,219 08,662 18,49 28,569 9,070 49,964 61,271 7,014 85,217 97, , ,851 (9,674) (19,018) (18,541) (17,859) (16,958) (15,825) (14,445) (12,805) (10,890) (8,682) (6,164) (,19) (129) (85,988) (88,789) (91,591) (94,492) (97,498) (100,614) (10,847) (107,202) (110,687) (114,08) (118,07) (121,991) (126,068) 8,878,915 9,159,117 9,449,27 9,749,818 10,061,429 10,84,675 10,720,19 11,068,658 11,40,782 11,807,18 12,199,061 12,606,850 1,01,572

216 City Heights CDC Rehab/Refi PROJECT CASH FLOW RENTAL REVENUES: Gross Potential Rent (Affordable Units) Laundry/Vending/Other Vacancy Allowance Rehab Period Vacancy Allowance Net Rental Income 201 Bond Sale Tax Credit Rents ,210,009 2,265,259 2,21,890 2,79,97 2,49,45 2,500,421 2,562,92 2,627,005 25,825 26,471 27,1 27,811 28,506 29,219 29,949 0,698 (111,792) (114,587) (117,451) (120,87) (12,97) (126,482) (129,644) (12,885) 2,124,042 2,177,14 2,21,572 2,287,61 2,44,544 2,40,158 2,46,27 2,524,818 Resident Services 0 SDHC Monitoring.5% Bond Issuer's Fee SDHC 1% Payment On Debt 7,059,000 TOTAL Other FIXED COSTS (per CDC 5,068 57,48 59,208 60,984 62,81 64,698 66,69 68,68 70,697 42,204 4,681 45,210 46,792 48,40 50,125 51,879 5,695 5,648 5,648 5,648 5,648 5,648 5,648 5,648 5,648 10,16 14,742 19,56 144, ,19 154,48 159, ,64 1,425,981 1,475,891 1,527,547 1,581,011 1,66,46 1,69,618 1,752,895 1,814,246 TOTAL OPERATING COSTS *** NET OPERATING INCOME: 1,661,62 1,719,169 1,778,745 1,840,44 1,904,15 1,970,468 2,08,978 2,109,90 462, , , , ,229 42, , ,888 Less: Income from Operations CASH FLOW FROM OPERATIONS: Net Operating Income Replacement Reserve CASH FLOW AVAILABLE FOR DEBT SERVICE Debt Service - First Trust Deed Cash Flow After Debt Service General Partner Asset Mgt Fee Limited Partner Asset Mgmt. Fee CASH FLOW AVAILABLE Resident services fee below the line Cash Flow Split to CHCDC CASH FLOW TO CHCDC Cash Flow to SDHC SDHC LOAN REPAYMENT Beginning Principal Amount Current Year Interest Current Year Payment from Cash Flow Ending Balance 462, , , , ,229 42, , , ,600 9,600 9,600 9,600 9,600 9,600 9,600 9, , ,74 41, ,27 400,629 9,090 84,659 75,288 (14,699) (14,699) (14,699) (14,699) (14,699) (14,699) (14,699) (14,699) 108,111 10,675 98,528 92,628 85,90 78,90 69,960 60,589 (47,90) (49,40) (50,820) (52,44) (5,915) (55,52) (57,198) (58,914) (9,581) (9,868) (10,164) (10,469) (10,78) (11,106) (11,440) (11,78) 50,628 44,467 7,544 29,814 21,22 11,752 1,22 (10,108) 57,48 59,208 60,984 62,81 64,698 66,69 68,68 70,697 (,428) (7,70) (11,720) (16,499) (21,7) (27,44) (,658) (40,402) 54,055 51,87 49,264 46,14 42,965 9,195 4,980 0,295 (,428) (7,70) (11,720) (16,499) (21,7) (27,44) (,658) (40,402) 1,01,572 1,474,16 1,95,61 14,416,96 14,919,14 15,44,827 15,991,728 16,564,07 49, , ,60 485, , ,457 58, ,217,428 7,70 11,720 16,499 21,7 27,44,658 40,402 (10,16) (14,742) (19,56) (144,170) (149,19) (154,48) (159,917) (165,64) 1,474,16 1,95,61 14,416,96 14,919,14 15,44,827 15,991,728 16,564,07 17,162,926

217 HOUSING COMMISSION MULTIFAMILY HOUSING REVENUE BOND PROGRAM Summary General Description: The multifamily housing bond program provides below-market financing (based on bond interest being exempt from income tax) for developers willing to set aside a percentage of project units as affordable housing. Multifamily housing revenue bonds are also known as private activity bonds because the projects are owned by private entities, often including nonprofit sponsors and for-profit investors. Bond Issuer: Housing Authority of the City of San Diego. There is no direct legal liability to the City, the Housing Authority or the Housing Commission in connection with the issuance or repayment of bonds. There is no pledge of the City s faith, credit or taxing power nor of the Housing Authority s faith or credit. The bonds do not constitute a general obligation of the issuer because security for repayment of the bonds is limited to specific private revenue sources, such as project revenues. The developer is responsible for the payment of costs of issuance and all other costs under each financing. Affordability: Minimum requirement is that at least 20% of the units are affordable at 50% of Area Median Income (AMI). Alternatively, a minimum of 10% of the units may be affordable at 50% AMI with an additional 0% of the units affordable at 60% AMI. The Housing Commission requires that the affordability restriction be in place for a minimum of 15 years. Due to the combined requirements of state, local, and federal funding sources, projects financed under the Bond Program are normally affordable for 0-55 years and often provide deeper affordability levels than the minimum levels required under the Bond Program. Rating: Generally AAA or its equivalent with a minimum rating of A or, under conditions that meet IRS and Housing Commission requirements, bonds may be unrated for private placement with institutional investors (typically, large banks). Additional security is normally achieved through the provision of outside credit support ( credit enhancement ) by participating financial institutions that underwrite the project loans and guarantee the repayment of the bonds. The credit rating on the bonds reflects the credit quality of the credit enhancement provider. Approval Process: Inducement Resolution: The bond process is initiated when the issuer (Housing Authority) adopts an Inducement Resolution to establish the date from which project costs may be reimbursable from bond proceeds (if bonds are later issued) and to authorize staff to work with the financing team to perform a due diligence process. The Inducement Resolution does not represent any commitment by the Housing Commission, Housing Authority, or the developer to proceed with the financing. TEFRA Hearing and Resolution (Tax Equity and Fiscal Responsibility Act of 1982): To assure that projects making use of tax-exempt financing meet appropriate governmental purposes and provide reasonable public benefits, the

218 IRS Code requires that a public hearing be held and that the issuance of bonds be approved by representatives of the governmental unit with jurisdiction over the area in which the project is located (City Council). This process does not make the City financially or legally liable for the bonds or for the project. Application for Bond Allocation: The issuance of these private activity bonds (bonds for projects owned by private developers, including projects with nonprofit sponsors and for-profit investors) requires an allocation of bond issuing authority from the State of California. To apply for an allocation, an application approved by the Housing Authority and supported by an adopted inducement resolution and by proof of credit enhancement (or bond rating) must be filed with the California Debt Limit Allocation Committee (CDLAC). In addition, evidence of a TEFRA hearing and approval must be submitted prior to the CDLAC meeting. Final Bond Approval: The Housing Authority retains absolute discretion over the issuance of bonds through adoption of a final resolution authorizing the issuance. Prior to final consideration of the proposed bond issuance, the project must comply with all applicable financing, affordability, and legal requirements and undergo all required planning procedures/reviews by local planning groups, etc. Funding and Bond Administration: All monies are held and accounted for by a third party trustee. The trustee disburses proceeds from bond sales to the developer in order to acquire and/or construct the housing project. Rental income used to make bond payments is collected from the developer by the trustee and disbursed to bond holders. If rents are insufficient to make bond payments, the trustee obtains funds from the credit enhancement provider. No monies are transferred through the Housing Commission or Housing Authority, and the trustee has no standing to ask the issuer for funds. Bond Disclosure: The offering document (typically a Preliminary Offering Statement or bond placement memorandum) discloses relevant information regarding the project, the developer, and the credit enhancement provider. Since the Housing Authority is not responsible in any way for bond repayment, there are no financial statements or summaries about the Housing Authority or the City that are included as part of the offering document. The offering document includes a paragraph that states that the Housing Authority is a legal entity with the authority to issue multifamily housing bonds and that the Housing Commission acts on behalf of the Housing Authority to issue the bonds. The offering document also includes a paragraph that details that there is no pending or threatened litigation that would affect the validity of the bonds or curtail the ability of the Housing Authority to issue bonds. This is the extent of the disclosure required of the Housing Authority, Housing Commission, or the City. However, it is the obligation of members of the Housing Authority to disclose any material facts known about the project, not available to the general public, which might have an impact on the viability of the project.

219 Attachment 8 ROSS FINANCIAL 176 Stockton Street, Suite One San Francisco, CA 941 (415) FAX (415) November 12, 201 Ms. Ann Kern Director, Housing Development and Finance Real Estate Department San Diego Housing Commission Housing Development & Finance Department 1122 Broadway, Suite 00 San Diego, CA Re: City Heights Ten Feasibility Analysis Dear Ms. Kern: The San Diego Housing Commission (the Commission ) has retained Ross Financial as its financial advisor to analyze the feasibility of issuing bonds for the City Heights Ten project, an acquisition-rehabilitation of ten separate housing developments (collectively, the Project ). The feasibility analysis reviews the following items: Project Overview Proposed Financing Benefits and Risks to the Commission Public Purpose Recommendations Ross Financial has based its analysis of the Project s feasibility on materials provided by Wakeland Housing & Development Corporation ( Wakeland ), as developer, on behalf of City Heights Ten, L.P., a California limited partnership (the Borrower ). The materials include: (1) the application to the California Debt Limit Allocation Committee ( CDLAC ), (2) the financing commitments from Wells Fargo as initial Bond Purchaser/Construction Lender and California Community Reinvestment Corporation as Permanent Lender, () the market study prepared by Lea & Company in support of the Borrower s application to CDLAC, and (4) Wakeland s proposed financial schedules for the Project. Ross Financial has not visited any of the developments that comprise the Project.

220 Ms. Ann Kern Re: City Heights Ten November 12, 201 Page 2 of 10 PROJECT OVERVIEW Project Summary. The Project consists of the acquisition-rehabilitation of 12 units located in ten separate affordable housing projects located in the City Heights community of San Diego. The ten housing projects are affordable to families or seniors, as the case may be, with incomes at 50% or 60% of area median income. The 12 units are comprised of: 4 studio apartments; 45 1-bedroom units; 71 2-bedroom units; 9 -bedroom units; and manager s units. Of the 129 restricted units, 114 units are restricted to families or senior with incomes that do not exceed 50% of area median income ( AMI ) and 15 units are restricted to families with incomes that do not exceed 60% of AMI. The table below summarizes the unit mix, income restrictions and other information applicable to each project: Project/Address Type # Units Unit Mix Income Restrictions Year Built Alta Vista 50% AMI rd Family BR/1BA St. 60% AMI 1985 Canyon Vista 50% AMI rd Family 8 8 2BR/1BA St. 60% AMI 1940 Cornerstone 604 Van Dyke Av. Family 7 7 2BR/1BA 50% AMI 198 Euclid Court Euclid Av. Family BR/1BA 8 1BR/1BA 50% AMI BR/2BA Harmony Homes th Street Senior BR/1BA 50% AMI 1957 San Diego Apts th Street Senior BR/1BA 1 1BR/1BA 50% AMI 1984 Sycamore Court ½ 48 th St. Family 17 Teralta Court Highland Av. Family 1 Village View rd St. West View 56 4 rd St. Family 0 Family 6 1 Mgr s Unit 1 1BR/1BA 15 2BR/1BA 1 Mgr s Unit 4 1BR/1BA 6 2BR/2BA BR/2BA 6 1BR/1BA 17 2BR/2BA 6 BR/2BA 1 Mgr s Unit 1 1BR/1 BA 5 2BR/1BA 50% AMI % 60% AMI % AMI % AMI 1985 The current owner of each of these projects is City Heights Community Development Corporation, a 501(c)() nonprofit organization ( CHCDC ). The rehabilitation of these units will address the immediate physical needs of each building, will extend the useful life of building systems, improve energy efficiency and

221 Ms. Ann Kern Re: City Heights Ten November 12, 201 Page of 10 reduce operating costs. In particular, the Borrower has identified the following scope of work: Replace all non-energy Star-rated appliances Replace all windows that lack thermal efficiency Add solar water heating Repair/replace roofs to provide for a minimum 20 year life Video scope sewers and repair and/or replace them Install new irrigation systems Repair/replace carpets and tile Upgrade site lighting for security purposes The Borrower will not be changing the unit mix nor the current income restrictions associated with any of the individual developments that comprise the Project. Description of Project Sites. The proposed Project is located on scattered sites in the City Heights ( City Heights ) community in the central part of San Diego, at the addresses noted in the previous table. The boundaries of the area in which the sites are located are Monroe Avenue to the north; College Avenue to the east; Highway 94 to the south; and Interstate 805 to the west. The sites range from 0.1 acres to 0.5 acres in size. According to the market study, the Project sites are located in close proximity (less than one mile) to a multitude of services, as summarized in the following table: Project/Address Alta Vista rd St. Canyon Vista rd St. Cornerstone 604 Van Dyke Av. Euclid Court Euclid Av. Harmony Homes th Street San Diego Apts th Street Sycamore Court ½ 48 th St. Teralta Court Highland Proximity to Services El Cajon Blvd bus stop 10yd; Mann Middle /Euclid Elem./Hoover High Schools less than 0.76mi; Alberstons.2mi; CVS yds; Library mi; Teralta Park 0.55 mi; La Maestra Comm Health Ctr 0.25mi El Cajon Blvd bus stop 2yd; Mann Middle /Euclid Elem./Hoover High Schools less than 0.76mi; Alberstons.49mi; CVS 0.5mi; Library mi; La Maestra Comm Health Ctr 0.55mi; Colina Del Sol Park 0.72mi Fairmount Av bus stop 245yd; Wilson Middle /Euclid Elem./Hoover High Schools less than 0.75mi; Alberstons 86 yds; CVS - 91 yds; Library mi; Teralta Park 0.6 mi; La Maestra Comm Health Ctr 1 yds Fairmount Av bus stop 215yd; Alberstons 202 yds; Walgreens yds; Library mi; Highland & Landis Park 0.4 mi; La Maestra Comm Health Ctr 144 yds University AV bus stop 141yd; Mann Middle /Euclid Elem./Hoover High Schools less than 0.77mi; Alberstons.48mi; Walgreens 0.65mi; Library - 0.6mi; La Maestra Comm Health Ctr 0.56mi; Colina Del Sol Park 0.72mi Fairmount Av bus stop 147yd; Clark Middle /Rosa Parks Elem./Hoover High Schools less than 0.57mi; Alberstons 10 yds; Walgreens yds; Library 128 yds; Highland & Landis Park 42 yds; La Maestra Comm Health Ctr 20yds Myrtle Av bus stop 280yd; Clark Middle /Joyner Elem./Hoover High Schools less than 0.8mi; Alberstons.4 mi; Walgreens -.41mi; Library.26 mi; Highland & Landis Park 405 yds; La Maestra Comm Health Ctr 0.47mi Myrtle Av bus stop 17yd; Clark Middle / joyner Elem/Hoover High Schools less than 0.86mi; Murphy s Mkt 168yds; Walgreens -.51mi; Library. mi;

222 Ms. Ann Kern Re: City Heights Ten November 12, 201 Page 4 of 10 Project/Address Av. Village View rd St. West View 56 4 rd St. Proximity to Services Highland & Landis Park 0.26mi; La Maestra Comm Health Ctr 0.54mi Myrtle Av bus stop 17yd; Clark Middle / joyner Elem/Hoover High Schools less than 0.86mi; Murphy s Mkt 168yds; Walgreens -.51mi; Library. mi; Highland & Landis Park 0.26mi; La Maestra Comm Health Ctr 0.54mi Myrtle Av bus stop 17yd; Clark Middle / Hoover High Schools less than 0.96mi; Murphy s Mkt 2yds; Walgreens -.59mi; Library.26 mi; Highland & Landis Park 0.7mi; La Maestra Comm Health Ctr 0.64mi Project Ownership/Borrower/Developer. The ownership entity for the Project and Borrower will be City Heights Ten, L.P., a California limited partnership consisting of: (1) Wakeland City Heights Ten LLC as the Managing General Partner (an affiliated limited liability corporation formed by Wakeland), (2) CHCDC as Administrative General Partner, and () Richman Capital, or an entity formed by it, as tax credit investor limited partner. Wakeland, a 501(c)() non-profit corporation, is the developer and is responsible for the rehabilitation of the apartment complexes that comprise Project. According to its CDLAC application, Wakeland has 15 years of experience during which it has developed/rehabilitated 4 multifamily rental housing projects with an aggregate of 5,817 affordable units. Within the past five years, in San Diego, Wakeland has developed/rehabilitated six multifamily rental housing projects containing more than 95 affordable housing units. Wakeland s most recent projects with the Housing Commission are: the 40-unit Juniper Gardens Apartments in City Heights, completed in November 201; the 94-unit Village Green Apartments, a new construction project in the Rolando area, completed in January 2010; and Vista Grande, a 49-unit acquisition-rehabilitation project in southeastern San Diego, completed in September PROPOSED FINANCING CDLAC and Transaction History. On September 1, 201, the Housing Commission staff, on behalf of the Housing Authority, filed an application to CDLAC requesting $8,000,000 of private activity bond allocation for the Project. At its meeting of November 1, 201, CDLAC awarded private activity bond allocation in the requested amount. CDLAC is expected to require that the allocation be used by February 11, 2014 (90 days after the award). In connection with the CDLAC application process, on September 10, 201, the Housing Authority adopted a resolution of intent to issue bonds for the Project and approved the submittal of an application to CDLAC. Also on September 10, 201, a TEFRA hearing was held before the City Council at which time the Project was approved for purposes of the Federal Tax Code. Project Costs and Funding. According to Wakefield s projections, total Project costs, including acquisition and rehabilitation costs, architect and engineering, financing and all soft costs are estimated at $15,27,226 during rehabilitation and $16,69,87 following completion of rehabilitation and lease-up ( at permanent ). The estimated sources of

223 Ms. Ann Kern Re: City Heights Ten November 12, 201 Page 5 of 10 funding for these costs will differ during construction and at permanent, as shown in the following table: Sources Construction Permanent Tax-Exempt Bond Proceeds $7,999,75 $4,518,420 Low Income Housing Tax Credit Equity 486,588 4,865,881 Housing Commission Loan Assumption 6,278,000 6,278,000 Transfer of Reserves 47,26 47,26 Income from Operations 0 15,09 GP Capital Contribution 0 42,000 Total $15,27,226 $16,69,87 Uses Acquisition Costs $8,928,719 $8,928,719 Rehabilitation Costs,99,268,99,268 Design & Engineering 407,80 407,80 Relocation 26,800 26,800 Financing Costs 629,86 1,226,9 Hard and Soft Cost Contingency 505, ,724 Permits and Fees 54,600 54,600 Marketing/General & Administrative 154, ,000 Other Legal/Financial/Other Consultants 266, ,000 Developer Fee 564,400 1,411,000 Total $15,27,226 $16,69,87 Bond Amount and Bank Purchase Approach. The bonds will be issued as unrated, taxexempt drawdown bonds by the Housing Authority in the anticipated amount of $7,999,75 (the Bonds ). The Bonds are expected to close in mid to late January The Bonds will finance a portion of the costs to acquire and rehabilitate the Project. Following the completion of rehabilitation and lease-up, in approximately 12 months after issuance, it is expected that the Bonds will be repaid in part with tax credit equity funds to an initial permanent Bond amount of $4,518,420. Wells Fargo Bank, N.A. ( Wells Fargo ) will purchase the Bonds at closing. Wells Fargo is a qualified institutional buyer and accredited investor within the meaning of the U.S. securities laws. At closing, it will sign an Investor s Letter certifying, among other things, that it is buying the Bonds for its own account and not for public distribution. The Bonds will pay interest only during construction. The interest rate on the Bonds will be variable based on 0-day LIBOR 1 (rounded to the nearest 1/16 th of 1%) basis points, reset monthly. The current LIBOR rate is %, resulting in a current all-in rate, after rounding, of 1.80%. The Borrower s proforma assumes a construction Bond interest rate of 4.00%. 1 LIBOR refers to London Inter-Bank Offered Rate, which is published daily.

224 Ms. Ann Kern Re: City Heights Ten November 12, 201 Page 6 of 10 At permanent, following the Bond pay down to $4,518,420 from tax credit equity funds, California Community Reinvest Corporation, a public benefit non-profit institution that specializes in affordable housing finance ( CCRC ), will acquire the Bonds from Wells Fargo. At that point, the interest rate on the Bonds will convert to a fixed rate, to be set prior to Bond closing, equal to the greater of: (a) 5.25% or (b) the 15 year AAA taxexempt index plus a spread of 1.75%. This rate will be fixed for 17 years, including a 24- month forward rate lock. Based on the current market, the fixed rate would be 5.25%. The Borrower s proforma assumes a permanent loan rate of 5.70%. The Bonds are expected to mature in approximately 2 years from issuance, with a rate reset in 17 years, and will amortize over 0 years at permanent. Housing Commission Financial Involvement. Since 1992, the Commission has made seventeen (17) separate amortizing or residual receipts loans to CHCDC with respect to the ten properties that comprise the Project. Three of the loans are in a first deed of trust lien position; the other 14 are in second or third position, subordinate to various bank lenders. All of the Commission loans, whether amortizing or residual receipts, bear simple interest at %. The aggregate amount of the loans was $5,60,90 and the outstanding loan balance is $5,471,46. Including accrued residual receipts interest, the total outstanding principal and interest on the 17 loans is $7,059,000 as of May 201. The outstanding principal and interest amount is expected to increase at Bond closing. In July 201, CHCDC entered into a memorandum of understanding with Wakeland that provided for the following: (1) Wakeland, in the form of the Borrower, would acquire the ten properties with the proceeds of the Bonds and low income housing tax credits; (2) a portion of the acquisition proceeds would be used to repay all the bank loans (in the amount of $1,854,719) to the ten properties in full and at least $600,000 of the Commission loans; and () the 17 Commission loans would be consolidated into a single loan to the Borrower. The Borrower s most recent pro forma indicates that $781,000 will be repaid at Bond closing. This projected loan pay down amount is subject to change based on the final amount of tax credit proceeds available at closing and interest rates. The Commission s consolidated loan will be in the form of a residual receipts loan with the following basic terms: Interest Rate: % simple interest Lien: Subordinate to the first lien construction/permanent Bond Payments: Residual receipts payments but with a 1% minimum loan payment each year Term: 55 years Affordability: 114 units at or below 50% or and 15 units at or below 60% AMI

225 Ms. Ann Kern Re: City Heights Ten November 12, 201 Page 7 of 10 Affordability Restrictions. The Project will be subject to the following regulatory restrictions and terms: Tax-Exempt Bond Regulatory Agreement requirements (including voluntary elections made to CDLAC) for a 55-year term; Tax Credit Regulatory Agreement requirements under which all units must be affordable at 60% AMI for a 55-year term to remain eligible for tax credits; and Commission s Loan Agreement under which the units will be restricted at 50% or 60% AMI, as described above, for 55 years. Project Cash Flow. According to the pro forma cash flows provided by the Borrower, Project income from rents, other sources (e.g., laundry, commercial) is estimated at $1,204,467 for the first full year of stabilized occupancy (assuming a 5% vacancy factor). Project net expenses are estimated at $826,828 (including operating expenses, service expenses, replacement reserves and 1% annual payment on the consolidated loan). As a result, first year net operating income (gross operating revenues less net operating and related expenses) is estimated at $77,69. Net operating income covers annual debt service on the Bonds (estimated at $14,699) by 1.20 times. The Borrower has escalated projected rent revenues at % per year and operating expenses at the rate of.5% per year. The following table shows the Borrower s projected cash flow for the Project during first five years following stabilized occupancy:

226 Ms. Ann Kern Re: City Heights Ten November 12, 201 Page 8 of 10 Cash flow after payment of Bond debt service is $2,940 in the first year. This amount is available to pay additional resident services, a cash flow split to CHCDC and a residual payment to the Commission. PUBLIC PURPOSE The Bonds will maintain in the long-term affordability of 129 studio, one, two and three bedroom units in the City of San Diego, of which 114 units will be restricted and affordable to households earning up to 50% of AMI and 15 units will be restricted and affordable to households earning up to 60% of AMI, with units occupied by resident managers. The Bond and Tax Credit Regulatory Agreements and the Commission s Loan Agreement will require that affordability levels be maintained for a period of 55 years. The Bonds will enable the Borrower to make needed improvements to ten affordable housing projects in City Heights, resulting in improved energy and operating efficiency. BENEFITS AND RISKS TO THE HOUSING AUTHORITY The Bonds provide a vehicle for financing the acquisition and rehabilitation of the ten properties that comprise the Project. As proposed, the Bonds will maintain the long-term affordability of 129 studio, one, two and three units in the City of San Diego with units restricted to income levels described in Public Purpose above.