MINUTES CITY OF DICKINSON BUILDING STANDARDS COMMISSION Regular Meeting Wednesday, April 9, 2014 6:00 p.m. A Regular Meeting of the Building Standards Commission of the City of Dickinson, Texas was held on Wednesday, April 9, 2014 at 6:00 p.m., in Council Chambers at Dickinson City Hall, 4403 Hwy 3, for the purpose of considering the following numbered items: ITEM 1) CALL TO ORDER AND CERTIFICATION OF A QUORUM Invocation and Pledge of Allegiance David Floyd called the meeting to order at 6:00 p.m. Board members present were David Floyd, Allen Carlile, James Ayers, and Louis Gil. City staff present was Chief Building Official, Kevin Byal, Assistant Building Official Ray Burgess, Code Enforcement Officer Jeff Pahlman, and Permit Technician Michelle Hollins. Not in attendance were Kirk Harstad, and Curtis Eubank. Louis Gill gave the Invocation and David Floyd led the Pledge of Allegiance. ITEM 2) CONSIDERATION AND POSSIBLE ACTION CONCERNING: Approval of Minutes for the March 13, 2013 Regular Meeting. James Ayers made the motion to accept the minutes for the March 13, 2013 meeting and Allen Carlile seconded the motion. VOTE: 3 AYES (Gill, Carlile and Ayers) 0 NAYS MOTION PASSED UNANIMOUSLY. ITEM 3) CONSIDERATION AND POSSIBLE ACTION REGARDING: Election of Chairman and Vice Chairman. A motion was made by James Ayers to appoint David Floyd as Chairman and Louis Gill as Vice-Chairman. Allen Carlile seconded the motion. VOTE: 3 AYES (Gill, Carlile and Ayers) 0 NAYS MOTION PASSED UNANIMOUSLY. Building Standards Commission Minutes 04-09-2014 Page 1 of 6

NEW BUSINESS ITEM 4) PUBLIC HEARING: To obtain public input to consider an appeal and determine whether the building should be demolished or repaired in accordance with the notice and order of the Building Official. This request is for property located at 2606 Pecan St. (Abst 19 Perry & Austin W 20 FT OF LOT 26 & ADJ 40 FT OF LOT 27 PECAN ACRES) in the City of Dickinson, Galveston County, Texas. Mr. Floyd opened the public hearing at 6:05 p.m. Jeff Pahlman presented the Code Compliance case to the Commission. Staff recommended the structure be declared substandard and ordered for demolition. Mr. Floyd closed the hearing at 6:14 p.m. ITEM 5) CONSIDERATION AND POSSIBLE ACTION CONCERNG: An appeal to determine whether the building should be demolished or repaired in accordance with the notice and order of the Building Official. This request is for the property located at 2606 Pecan St. (Abst 19 Perry & Austin W 20 FT OF LOT 26 & ADJ 40 FT OF LOT 27 PECAN ACRES ) in the City of Dickinson, Galveston County, Texas. James Ayers made the motion finding that the structure located at 2606 Pecan St. is substandard and is ordered to be demolished, and Louis Gill seconded the motion. VOTE: 3 AYES (Gill, Carlile and Ayers) 0 NAYS MOTION PASSED UNANIMOUSLY. ITEM 6) PUBLIC HEARING To obtain public input to consider an appeal and determine whether the building should be demolished or repaired in accordance with the notice and order of the Building Official. This request is for property located at 2507 21 st St. (ABST 19 PERRY & AUSTIN LOT 1-2 BLK 161 MOORE ADDN DICKINSON) in the City of Dickinson, Galveston County, Texas. Mr. Floyd opened the public hearing at 6:14 p.m. Building Standards Commission Minutes 04-09-2014 Page 2 of 6

Jeff Pahlman presented the Code Compliance case to the Commission. Staff recommended the structure be declared substandard and ordered for demolition. Mr. Herbert Lawson Jr, spoke concerning the property. He requested to have the opportunity to work on the house. The property is owned by his aunt and at this time he is not on speaking term with her. Ray Burgess stated that we cannot issue permits on the property because he is not the home owner. Mr. Floyd closed the hearing at 6:34 p.m. ITEM 7) CONSIDERATION AND POSSIBLE ACTION CONCERNING: An appeal to determine whether the building should be demolished or repaired in accordance with the notice and order of the Building Official. This request is for the property located at 2507 21 st St. (ABST 19 PERRY & AUSTIN LOT 1-2 BLK 161 MOORE ADDN DICKINSON) in the City of Dickinson, Galveston County, Texas. Allen Carlile made the motion finding that the structure located at 2507 21 st St. is substandard and is ordered to be demolished. James Ayers seconded the motion. VOTE: 3 AYES (Gill, Carlile and Ayers) 1 NAYS MOTION PASSED UNANIMOUSLY. ITEM 8) PUBLIC HEARING: To obtain public input to consider an appeal and determine whether the building should be demolished or repaired in accordance with the notice and order of the Building Official. This request is for property located at 5310 Honeyvine Dr. (ABST 60 E P EPPERSON ABST 155 P G MERRITT LOT 92 BRIAR GLEN SEC 1 PHASE II) in the City of Dickinson, Galveston County, Texas. Mr. Floyd opened the public hearing at 6:35 p.m. Jeff Pahlman presented the Code Compliance case to the Commission. Staff recommended the structure be declared substandard and ordered for demolition. Mr. Floyd closed the hearing at 6:42 p.m. ITEM 9) CONSIDERATION AND POSSIBLE ACTION CONCERNING: An appeal to determine whether the building should be demolished or repaired in Building Standards Commission Minutes 04-09-2014 Page 3 of 6

accordance with the notice and order of the Building Official. This request is for the property located at 5310 Honeyvine Dr. (Abstract 60 E P EPPERSON Abstract 155 P G MERRITT LOT 92 BRIAR GLEN SEC 1 PHASE II) in the City of Dickinson, Galveston County, Texas. Louis Gill made the motion finding that the structure located at 5310 Honeyvine Dr. is substandard and is ordered to be demolished. James Ayers seconded the motion. VOTE: 3AYES (Gill, Carlile and Ayers) 0 NAYS MOTION PASSED UNANIMOUSLY. ITEM 10) PUBLIC HEARING: To obtain public input to consider an appeal and determine whether the building should be demolished or repaired in accordance with the notice and order of the Building Official. This request is for property located at 4426 Island Dr. (Abstract 36 PAGE 3 LOTS 5 & 6 (5-1) Block 8 TROPICAL GARDENS) in the City of Dickinson, Galveston County, Texas. Jeff Pahlman informed the Commission that no action was required on this property because the owner had already demolished the structure. ITEM 11) CONSIDERATION AND POSSIBLE ACTION CONCERNING: To obtain public input to consider an appeal and determine whether the building should be demolished or repaired in accordance with the notice and order of the Building Official. This request is for property located at 4426 Island Dr. (Abstract 36 PAGE 3 LOTS 5 & 6 (5-1) Block 8 TROPICAL GARDENS) in the City of Dickinson, Galveston County, Texas. No action was taken because the owner had already demolished the structure. ITEM 12) PUBLIC HEARING: To obtain public input to consider an appeal and determine whether the building should be demolished or repaired in accordance with the notice and order of the Building Official. This request is for property located at 4501 E. 33 rd (Abstract 78 R HALL Lots 22 23 & 24 Block 252 NICHOLSTONE & IMPS) in the City of Dickinson, Galveston County, Texas Mr. Floyd opened the hearing at 6:45 p.m. Building Standards Commission Minutes 04-09-2014 Page 4 of 6

Jeff Pahlman presented the Code Compliance case to the Commission. Staff recommended the structure be declared substandard and ordered for demolition. Mr. Anthony D. Gunn, spoke on behalf of the property owner, Mr. Lloyd Jones. Mr. Gunn stated it was going to take a lot of work to bring this house up to standard, and if given the chance, the house can be rehabilitated. Mr. Stan Duitscher, a Civil Engineer, presented a written report he prepared stating that the house can be rehabilitated. Ray Burgess, spoke, stating that he was concerned that the owner does not have the resources to rehabilitate the structure and to complete it in an acceptable time frame. Kevin Byal requested that the Commission consider giving owner 60 days to prepare documents that include, transfer of property, a detailed description and scope of work, and time frame work is to be done. Mr. Floyd closed the hearing at 7:21pm ITEM 13) CONSIDERATION AND POSSIBLE ACTION CONCERNING: An appeal to determine whether the building should be demolished or repaired in accordance with the notice and order of the Building Official. This request is for the property located at 4501 E. 33 rd (Abstract 78 R HALL Lots 22 23 & 24 Block 252 NICHOLSTONE & IMPS ) in the City of Dickinson, Galveston County, Texas. Mr. Allen Carlile made a motion to order the owner to coordinate with and sign an agreement for repairs with the City of Dickinson, and report back in 60 days.james Ayers seconded the motion. VOTE: 3 AYES (Gill, Carlile and Ayers) 0 NAYS MOTION PASSED UNANIMOUSLY ITEM 14) SUB-STANDARD STRUCTURE REVIEW: Code Enforcement Officer, Jeff Pahlman gave a Power Point presentation outlining all the properties that were brought into compliance. ITEM 15) ADJOURN Building Standards Commission Minutes 04-09-2014 Page 5 of 6

James Ayers made the motion to adjourn the meeting at 7:28 p.m. Louis Gill seconded the motion. VOTE: 3 AYES (Gill, Carlile and Ayers) 0 NAYS MOTION PASSED UNANIMOUSLY. Chairman Building Standards Commission Minutes 04-09-2014 Page 6 of 6

2802 Hwy 3

2802 Hwy 3

Dickinson Building Standards Commission Agenda Item Data Sheet MEETING DATE July 9, 2014 TOPIC: Continuance of the Consideration and Possible action item concerning the dilapidated property 4501 E 33 rd Street. BACKGROUND: During the April 9th, 2014 meeting, the Commission tabled this item so as to give Lloyd Jones and Sylvester Renovato an additional 60 days to produce the following items: 1) Transfer of ownership 2) Engineers prescribed scope of work 3) A timeline in which the work would be completed 4) Sign an agreement with the City of Dickinson RECOMMENDATION: ATTACHMENTS: Packet documents for the April 9, 2014 Building Standards Commission meeting. SUBMITTING STAFF MEMBER: Jeff Pahlman, Code Enforcement Officer PAGE 1 OF 1

File No. 1403119 SUMMARY APPRAISAL REPORT OF THE REAL PROPERTY LOCATED AT 4501 E. 33rd St Dickinson, Tx. 77539-5616 for City of Dickinson 4403 Highway 3 Dickinson, Tx. 77539 as of March 18,2014 by George S. McLeod, IFAS P.O. Box 1160 League City, TX 77574 Associated Appraisal Service

Associated Appraisal Service P.O. Box 1160 League City, TX 77574 281-332-0270 March 29, 2014 City of Dickinson 4403 Highway 3 Dickinson, Tx. 77539 Property - 4501 E. 33rd St Dickinson, Tx. 77539-5616 Borrower - N/A File No. - 1403119 Case No. - Dear Mr. Pahlman: In accordance with your request, I have prepared an appraisal of the real property located at 4501 E. 33rd St, Dickinson, Tx.. The purpose of the appraisal is to provide an opinion of the market value of the property described in the body of this report. Enclosed, please find the report which describes certain data gathered during our investigation of the property. The methods of approach and reasoning in the valuation of the various physical and economic factors of the subject property are contained in this report. An inspection of the property and a study of pertinent factors, including valuation trends and an analysis of neighborhood data, led the appraiser to the conclusion that the market value, as of March 18,2014 is : $6,500 The opinion of value expressed in this report is contingent upon the Limiting Conditions attached to this report. It has been a pleasure to assist you. If I may be of further service to you in the future, please let me know. Respectfully submitted, Associated Appraisal Service George S. McLeod, IFAS TX Certification #1321790

S U B J E C T N E I G H B O R H O O D S I T E I M P R O V E M E N T S Q U A N T I T A T I V E S A L E S C O M P A R I S O N A N A L Y S I S Fannie Mae Desktop Underwriter Quantitative Analysis Appraisal Report File No. 1403119 THIS SUMMARY APPRAISAL IS INTENDED FOR USE BY THE LENDER/CLIENT FOR A MORTGAGE FINANCE TRANSACTION ONLY. Property Address 4501 E. 33rd St City Dickinson State Tx. Zip Code 77539-5616 Legal Description Assessor's Parcel No. 5320-0252-0022-000 Tax Year 2013 R.E. Taxes $ 1,138.00 Special Assessments $ Borrower N/A Current Owner Lloyd Jones Occupant Owner Tenant X Vacant Neighborhood or Project Name Dickinson Project Type PUD Condominium HOA$ /Mo. Sales Price $ N/a Date of Sale N/A Description / $ amount of loan charges/concessions to be paid by seller Property rights appraised X Fee Simple Leasehold Map Reference 660W Census Tract 7211 Note: Race and the racial composition of the neighborhood are not appraisal factors. Location Urban X Suburban Rural Property Values Increasing X Stable Declining Single family housing Condominium housing Built up Over 75% X 25-75% Under 25% Demand/supply Shortage X In balance Over supply PRICE AGE PRICE AGE $(000) (yrs) $(000) (if applic.) (yrs) Growth rate Rapid X Stable Slow Marketing time Under 3 mos. X 3-6 mos. Over 6 mos. 10 Low 5 Low Neighborhood boundaries North-FM 646; South: Hughes Road; East-FM 3436; West-IH45. Subject is located in an 165 High 75 High County Predominant Dimensions See Plat Site area 9000 sq ft Shape Rectangle Specific zoning classification and description CR-Conventional Residential Zoning compliance X Legal Legal nonconforming (Grandfathered use) Illegal, attach description No zoning Highest and best use of subject property as improved (or as proposed per plans and specifications): X Present use * Other use, attach description. Predominant Utilities Public Other Public Other Off-site improvements Type Public Private Electricity X Water X Street Asphalt X Gas X Sanitary sewer X Alley None Are there any apparent adverse site conditions (easements, encroachments, special assessments, slide areas, etc.)? Yes X No If Yes, attach description. Source(s) used for physical characteristics of property: X Interior and exterior inspection Exterior inspection from street Previous appraisal files MLS X Assessment and tax records Prior inspection Property owner Other (Describe): No. of Stories 1 Type (Det./Att.) Traditional Exterior Walls BV/Wd Roof Surface Comp Shingle Manufactured Housing Yes X No Does the property generally conform to the neighborhood in terms of style, condition, and construction materials? X Yes No If No, attach description. Are there any apparent physical deficiencies or conditions that would affect the soundness or structural integrity of the improvements or the livability of the property? Yes No If Yes, attach description. Uninhabitable in As Is Condition. House is in Poor Condition. Slab damage and roof damage. See Photos. Are there any apparent adverse environmental conditions (hazardous wastes, toxic substances, etc.) present in the improvements, on the site, or in the immediate vicinity of the subject property? Yes No If Yes, attach description. I researched the subject market area for comparable listings and sales that are the most similar and proximate to the subject property. My research revealed a total of 4 sales ranging in sales price from $ 12,475 to $ 80,000. My research revealed a total of 2 listings ranging in list price from $ 30,000 to $ 71,420. The analysis of the comparable sales below reflects market reaction to significant variations between the sales and the subject property. Address FEATURE SUBJECT SALE 1 SALE 2 SALE 3 Proximity to Subject Sales Price $ N/a $ 12,475 $ 46,500 $ 17,000 Price/Gross Liv. Area $ 0.00 $ 8.20 $ 28.00 $ 10.79 Data & Verification Sources VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION + (-) $ Adjustment DESCRIPTION + (-) $ Adjustment DESCRIPTION + (-) $ Adjustment Sales or Financing Concessions Date of Sale/Time Location Site View Design (Style) Actual Age (Yrs.) Condition Above Grade Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Room Count Gross Living Area 1,633 Sq. Ft. 1,521 Sq. Ft. 2,200 1,661 Sq. Ft. -600 1,576 Sq. Ft. 1,100 Basement & Finished Rooms Below Grade Garage/Carport Demolition Deduction $3,500 None -3,500 None -3,500 None Net Adj. (total) + X - $ -5,720 + X - $ -41,550 + X - $ -10,520 Adjusted Sales Price of Comparables Net -45.9% $ 6,755 Net -89.4% $ 4,950 Net -61.9% $ 6,480 Date of Prior Sale Abst. 78, R. Hall Survey, Lots 22,23 & 24, Block 252, Nicholstone & Imps older/established, mixed use area in east/central sector of Dickinson. It is located just east of Dickinson Avenue, north of FM 517, at north side of 33rd Street. X X Price of Prior Sale $ N/A $ N/A $ N/A $ N/A Analysis of any current agreement of sale, option, or listing of the subject property and analysis of the prior sales of subject and comparables: Galveston 80 35 4501 E. 33rd St 4818 Nebraska St 4814 28th St 4414 Nicholini St Dickinson Dickinson Dickinson Dickinson, TX 77539 0.89 miles S 0.38 miles NW 0.82 miles S HAR-MLS # 6461234/GCAD HAR-MLS#84586913/GCAD HAR-MLS#881822482/GCAD Cash Cash Cash 5/6/2013 11/15/2013 08/23/2013 Dickinson Dickinson Dickinson Dickinson 9000 sq ft 6075 sqft 3,500 9000 sqft 8015 sq ft Avg-Res Avg-Res Avg-Res Avg-Res 1sty Traditional 1.5 Traditional 1sty Traditional 1sty Traditional 59 yrs 68 yrs 24 yrs -3,500 54 yrs Poor/Uninhabitable Poor/Uninhabitable Superior -20,000 Poor/Uninhabitable 6 3 2.00 7 4 1.00 1,500 6 3 2.00 6 3 2.00 None None None None None None None None Asses Ld Value Dedct$13,950 Per GCAD -9,420 None -13,950 Per GCAD -11,620 Gross 161.3% Gross 89.4% Gross 74.8% N/A N/A N/A N/A Not applicable. Summary of sales comparison and value conclusion: The sales presented are the most recent and similar that could be identified for comparison with the subject. The request for this appraisal was for estimated value of the subject improvements prior to a probable demolition. The present As Is condition of the house and related improvements was determined by appraiser via an on-site inspection. The house is in poor condition and is not inhabitable in present condition. Adjustments for identified differences in the subject and sales have been made which include GLA, Condition and site size/value differences. A deduction for estimated contributory value of the site was made along with an estimated cost to demolish and remove the existing improvements. This appraisal is made X "as is", subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been completed, or subject to the following repairs, alterations or conditions: *** See Additional Comments *** BASED ON AN EXTERIOR INSPECTION FROM THE STREET OR AN X INTERIOR AND EXTERIOR INSPECTION, I ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THIS REPORT TO BE $ 6,500, AS OF March 18,2014. 10 CH. PAGE 1 OF 3 Fannie Mae Form 2055 9-96 Associated Appraisal Service

P U D Desktop Underwriter Quantitative Analysis Appraisal Report File No. 1403119 Project Information for PUDs (If applicable) - - Is the developer/builder in control of the Home Owners' Association (HOA)? Yes X No Provide the following information for PUDs only if the developer/builder is in control of the HOA and the subject property is an attached dwelling unit: Total number of phases Total number of units Total number of units sold Total number of units rented Total number of units for sale Data Source(s) Was the project created by the conversion of existing buildings into a PUD? Does the project contain any multi-dwelling units? Yes No Data Source: Are the common elements completed? Yes No Yes No If No, describe status of completion: If yes, date of conversion: Are any common elements leased to or by the Home Owners' Association? Yes No If yes, attach addendum describing rental terms and options. Describe common elements and recreational facilities: C O N D O M I N I U M Project Information for Condominiums (If applicable) - - Is the developer/builder in control of the Home Owners' Association (HOA)? Yes No Provide the following information for all Condominium Projects: Total number of phases Total number of units Total number of units sold Total number of units rented Total number of units for sale Data Source(s) Was the project created by the conversion of existing buildings into a condominium? Yes No If yes, date of conversion: Project Type: Primary Residence Second Home or Recreational Row or Townhouse Garden Midrise Highrise Condition of project, quality of construction, unit mix, etc.: Are the common elements completed? Are any common elements leased to or by the Home Owners' Association? Yes Describe common elements and recreational facilities: No If No, describe status of completion: Yes No If yes, attach addendum describing rental terms and options. PURPOSE OF APPRAISAL: The purpose of this appraisal is to estimate the market value of the real property that is the subject of this report based on a quantitative sales comparison analysis for use in a mortgage finance transaction. DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale. *Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgement. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible ownership. 2. The appraiser has provided any required sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of its size. 3. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand. 4. The appraiser has noted in the appraisal report any adverse conditions (such as, but not limited to, needed repairs, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc.) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, expressed or implied, regarding the condition of the property. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment of the property. 5. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties. 6. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 7. The appraiser must provide his or her prior written consent before the lender/client specified in the appraisal report can distribute the appraisal report (including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal organizations or the firm with which the appraiser is associated) to anyone other than the borrower; the mortgagee or its successors and assigns; the mortgage insurer; consultants; professional appraisal organizations; any state or federally approved financial institution; or any department, agency, or instrumentality of the United States or any state or the District of Columbia; except that the lender/client may distribute the report to data collection or reporting service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval must also be obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. 8. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been completed. 9. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 10 CH. PAGE 2 OF 3 Fannie Mae Form 2055 9-96 Associated Appraisal Service

Desktop Underwriter Quantitative Analysis Appraisal Report File No. 1403119 APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: 1. I performed this appraisal by (1) personally inspecting from the street the subject property and neighborhood and each of the comparable sales (unless I have otherwise indicated in this report that I also inspected the interior of the subject property); (2) collecting, confirming, and analyzing data from reliable public and/or private sources; and (3) reporting the results of my inspection and analysis in this summary appraisal report. I further certify that I have adequate information about the physical characteristics of the subject property and the comparable sales to develop this appraisal. 2. I have researched and analyzed the comparable sales and offerings/listings in the subject market area and have reported the comparable sales in this report that are the best available for the subject property. I further certify that adequate comparable market data exists in the general market area to develop a reliable sales comparison analysis for the subject property. 3. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware, have considered these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them, and have commented about the effect of the adverse conditions on the marketability of the subject property. I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct. 4. I stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent and limiting conditions specified in this form. 5. I have no present or prospective interest in the property that is the subject of this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report on the race, color, religion, sex, age, marital status, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property or on any other basis prohibited by law. 6. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property. 7. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, the amount of the value estimate, the attainment of a specific result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal. I did not base the appraisal report on a requested minimum valuation, a specific valuation, or the need to approve a specific mortgage loan. 8. I estimated the market value of the real property that is the subject of this report based on the sales comparison approach to value. I further certify that I considered the cost and income approaches to value, but, through mutual agreement with the client, did not develop them, unless I have noted otherwise in this report. 9. I performed this appraisal as a limited appraisal, subject to the Departure Provision of the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of the effective date of the appraisal (unless I have otherwise indicated in this report that the appraisal is a complete appraisal, in which case, the Departure Provision does not apply). 10. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value. The exposure time associated with the estimate of market value for the subject property is consistent with the marketing time noted in the Neighborhood section of this report. The marketing period concluded for the subject property at the estimated market value is also consistent with the marketing time noted in the Neighborhood section. 11. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. I further certify that no one provided significant professional assistance to me in the development of this appraisal. SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that: I directly supervise the appraiser who prepared the appraisal report, have examined the appraisal report for the compliance with the Uniform Standards of Professional Appraisal Practice, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 5 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. APPRAISER: SUPERVISORY APPRAISER (ONLY IF REQUIRED): Signature: Signature: Name: George S. McLeod, IFAS Name: Company Name: Associated Appraisal Service Company Name: Company Address: P.O. Box 1160 Company Address: League City, TX 77574 Date of Report / Signature: 03/29/2014 Date of Report / Signature: State Certification #: 1321790 State Certification #: or State License #: or State License #: State: TX State: Expiration Date of Certification or License: 12/31/2015 Expiration Date of Certification or License: ADDRESS OF PROPERTY APPRAISED: SUPERVISORY APPRAISER: 4501 E. 33rd St Dickinson, Tx. 77539-5616 APPRAISED VALUE OF SUBJECT PROPERTY $ EFFECTIVE DATE OF APPRAISAL / INSPECTION LENDER/CLIENT: Name: Mr. Jeff Pahlman Company Name: City of Dickinson Company Address: 4403 Highway 3, Dickinson, Tx. 77539 03/18/14 6,500 SUBJECT PROPERTY Did not inspect subject property Did inspect exterior of subject property from street Did inspect interior and exterior of subject property COMPARABLE SALES Did not inspect exterior of comparable sales from street Did inspect exterior of comparable sales from street 10 CH. PAGE 3 OF 3 Fannie Mae Form 2055 9-96 Associated Appraisal Service

ADDITIONAL COMMENTS File No. 1403119 Borrower or Owner N/A Property Address 4501 E. 33rd St City Dickinson County Galveston State Tx. Zip Code 77539-5616 Lender or Client City of Dickinson SCOPE OF THE APPRAISAL This appraisal was conducted in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) and per client perscribed requirements. In preparing this appraisal, the appraiser inspected the subject site, improvements and neighborhood. The County CAD records were utilized for site size and house GLA size. The MLS sales records for the subject market area was researched for the most recent, similar and close proximity sales, closing in past 12 months, to select comparables to estimate value for the subject. Based on the sales report information, adjustments for identified differences were made, based on estimated market contributory value of the identified differences. The adjusted sales value indications were reconciled to a final value estimate. HIGHEST AND BEST USE THE SUBJECT LOCATION IS IN THE ZONED AREA OF DICKINSON AND IS ZONED AS "CR" CONVENTIONAL RESIDENTIAL. THE HIGHEST AND BEST USE FOR THE SITE "AS IF VACANT" IS CONSIDERED TO BE FOR THE EXISTING RESIDENTIAL USE WITHIN THE PERSCRIBED ZONING. CONDITION OF THE IMPROVEMENTS A COMPLETE EXTERIOR AND INTERIOR INSPECTION OF THE SUBJECT IMPROVEMENTS WAS PERFORMED. BASED ON OBSERVATION OF THE SUBJECT IMPROVEMENTS FROM THE EXTERIOR AND INTERIOR, THE HOUSE IS IN VERY POOR CONDITION AND APPEAR TO BE UN-INHABITABLE. THE IMPROVEMENTS ARE FELT TO HAVE MINIMAL CONTRIBUTORY VALUE IN AS IS CONDITION. HOUSE APPEARS TO HAVE EXTENSIVE FOUNDATION SETTLEMENT. SEE PHOTOS. SITE AREA SIZE AND GLA SIZE OF PROPERTY WAS OBTAINED FROM THE GALVESTON COUNTY CAD RECORDS AND IS ASSUMED TO BE REASONABLY ACCURATE AND RELIABLE. CONDITIONS OF THE APPRAISAL THIS REPORT WAS PREPARED FOR USE OF THE CITY OF DICKINSON FOR DETERMINING VALUE OF THE IMPROVEMENTS IN AS IS CONDITION. NO OTHER USER OR USE IS PERMITTED WITHOUT WRITTEN CONSENT OF THE CLIENT AND THE APPRAISER Associated Appraisal Service

Location Map File No. 1403119 Borrower or Owner N/A Property Address 4501 E. 33rd St City Dickinson County Galveston State Tx. Zip Code 77539-5616 Client City of Dickinson Associated Appraisal Service

FLOOD MAP File No. 1403119 Borrower or Owner N/A Property Address 4501 E. 33rd St City Dickinson County Galveston State Tx. Zip Code 77539-5616 Client City of Dickinson Associated Appraisal Service

PHOTOGRAPH ADDENDUM File No. 1403119 Borrower or Owner N/A Property Address 4501 E. 33rd St City Dickinson County Galveston State Tx. Zip Code 77539-5616 Client City of Dickinson FRONT VIEW OF SUBJECT PROPERTY REAR VIEW OF SUBJECT PROPERTY STREET SCENE OF SUBJECT PROPERTY Associated Appraisal Service

PHOTOGRAPH ADDENDUM File No. 1403119 Borrower or Owner N/A Property Address 4501 E. 33rd St City Dickinson County Galveston State Tx. Zip Code 77539-5616 Client City of Dickinson SETTLEMENT CRACKS SETTLEMENT CRACKS CRACKED SLAB Associated Appraisal Service

PHOTOGRAPH ADDENDUM File No. 1403119 Borrower or Owner N/A Property Address 4501 E. 33rd St City Dickinson County Galveston State Tx. Zip Code 77539-5616 Client City of Dickinson CEILING DAMAGE WALL DAMAGE CEILING DAMAGE Associated Appraisal Service

File No. 1403119 PHOTOGRAPH ADDENDUM Borrower or Owner N/A Property Address 4501 E. 33rd St City Dickinson County Galveston State Tx. Zip Code 77539-5616 Client City of Dickinson COMPARABLE #1 4818 Nebraska St Dickinson Price $12,475 Price/SF 8.20 Date 5/6/2013 Age 68 yrs Room Count 7-4-1.00 Living Area 1,521 Value Indication $6,755 COMPARABLE #2 4814 28th St Dickinson Price $46,500 Price/SF 28.00 Date 11/15/2013 Age 24 yrs Room Count 6-3-2.00 Living Area 1,661 Value Indication $4,950 COMPARABLE #3 4414 Nicholini St Dickinson, TX 77539 Price $17,000 Price/SF 10.79 Date 08/23/2013 Age 54 yrs Room Count 6-3-2.00 Living Area 1,576 Value Indication $6,480 Associated Appraisal Service

File No. 1403119 APPRAISER LICENSE AND QUALIFICATIONS Associated Appraisal Service

City of Dickinson 4403 Hwy 3 Dickinson, TX 77539 phone (281) 337-6259 fax (281) 337-6190 March 20, 2013 10 #: 13-00061 Lloyd Allen Jones 1855 Lake Shore Drive Canyon Lake, TX 78133 Re: Order of Demolition - Non Compliance at 4501 E 33rd St. Nicholstone Blk 252 Lot 22, 23 & 24 No. 78R Hall Dear Lloyd Allen Jones: An inspection of the above referenced property was made on March 20, 2013. At the time of this inspection, the condition described below was observed: Condition: Structure is vacant, unsecured and dangerous The condition described above is in violation of Section 5-104(1) of the City of Dickinson Code, which states: A building or structure which, because of its deficiency of its materials, methods or means of construction, including the foundation, structural elements, wiring apparatus, plumbing and fixtures make the structure hazardous. All violations must be brought into compliance within thirty (30) days of the receipt of this letter. This will be your only warning for the year. Future violations will result in charges being filed on a weekly basis until all violations are corrected. Your assistance in this matter is greatly appreciated. free to contact our office at (281) 337-6274. If you have any questions regarding this notice, please feel Regards, Jeff Pahlman C(;;J1p~ C1rt~fre~Maii # 70111150000102278853 www.ci. dickinson. beus ID #: 13-00061 I Printed Mar 20,2013 at 1049 by Jeff Pahlman Letter 1 of 1 --- -- ---_. ~--- ------------- ----------

April 9, 2014 Photos of Violations 4501 E. 33 rd Street

April 9, 2014 Photos of Violations 4501 E. 33 rd Street