Section 5, Line 8 Please attach required documentation verifying this value (e.g. appraisal). Please find attached Summary Narrative Appraisals of the 13 BHA public housing properties prepared by Certified General Appraisal Consultant Services, dated November 2009. The total appraisal value of the 13 properties is $9,615,000 as follows: Address # of Appraised Value Units 1. 1107-1123 Francisco St. 9 $1,150,000 2. 1161-1175 Francisco St. 7 $952,000 3. 1323 Channing Way/2374 West St. 2 $460,000 4. 1360-1370 Dwight Way 2 $440,000 5. 1371 Dwight Way/2450 Valley St. 2 $440,000 6. 1838-1840 Rose St. * 2 $463,751 7. 1402-1408 Martin L. King Jr. Way * 4 $1,061,249 8. 870-880 Jones St * 2 $355,882 9. 1500-1504 7th St. * 3 $444,118 10. 1903-1927 Ward St. 12 $1,420,000 11. 2024-2036 Virginia St. 7 $1,300,000 12. 2725-2737 Sojourner Truth Ct. * 7 $875,324 13. 2798 A & 2798 B Sacramento St. * 2 $252,676 Total 61 $9,615,000 * Three of the BHA properties (Rose/MLK, Jones/7 th, and Sojourner Truth/Sacramento) are split into two separate addresses in the PIC system. However, the properties sit on one parcel and were appraised as one property. For the purposes of matching the appraisals with the PIC inventory, we have pro-rated the value of those combined parcels by unit square footage.
File No. 29930NF 1 1107 1123 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 TABLE OF CONTENTS Invoice... 1 Opinion of Value: $ 1,150,000 or 127,745/Unit : Driveby Appraisal Form 2055... 2 Subject Photos: Front, Rear and Street... 5 Comparable Photos 1 3... 6 Description of Building and Property Improvements... 7 Subject Plat Map... 8 Surplus Land Addendum... 9 Support for Market Conditions Adjustment (Time)... 10 Berkeley Rent Control Addendum... 11 Location Map for Subject and Comps... 13 Scope of Work for this Assignment... 14 Statement of Limiting Conditions for Driveby Appraisal... 15 Form TOCPPIX "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Desktop Underwriter Quantitative Analysis Appraisal Report File No. 29930NF 1 THIS SUMMARY APPRAISAL REPORT IS INTENDED FOR USE BY THE LENDER/CLIENT FOR A MORTGAGE FINANCE TRANSACTION ONLY. 1107 1123 FRANCISCO STREET City BERKELEY State CA Zip Code 94702 Legal Description SEE LEGAL ADDENDUM (THIS IS A USPAP SUMMARY REPORT PER DRIVEBY SCOPE OCounty ALAMEDA Assessor's Parcel No. 058 2129 016 Tax Year 09 10 R.E. Taxes $ EXEMPT PUBSpecial Assessments $ Borrower Current Owner BERKELEY UNIFIED SCHOOL DIST Occupant Owner Tenant Vacant Neighborhood or Project Name BERKELEY (9 UNIT APT BUILDING) Project Type PUD Condominium HOA $ /Mo. Sales Price $ MKT VALUE Date of Sale 11/25/2009 Description / $ amount of loan charges/concessions to be paid by seller Property rights appraised Fee Simple Leasehold Map Reference 626 E1 Census Tract 422.00/3 Note: Race and the racial composition of the neighborhood are not appraisal factors. Location Urban Suburban Rural Property values Increasing Stable Declining Single family housing Condominium housing PRICE AGE PRICE (if applic.) AGE Built up Over 75% 25 75% Under 25% Demand/supply Shortage In balance Over supply $(000) (yrs) $(000) (yrs) Growth rate Rapid Stable Slow Marketing time Under 3 mos. 3 6 mos. Over 6 mos. 749 Low 29 NA Low NA Neighborhood boundaries SEE LOCATION MAP FOR GENERAL BOUNDARIES. NEIGHBORHOOD HAS 1,510 High 99 NA High NA HOMOGENEOUS MARKET VALUES. RADUIS OF VALUE = 0 mi to 2.5.SINGLE FAMILY PRICE Predominant Predominant RANGE HEADING = MULTI FAMILY PRICE RANGES AS FORM HAS BEEN MODIFIED. 1,120 64 Dimensions 75FT X 199.28FT Site area 14,946 Shape RECTANGULAR Specific zoning classification and description R 2 RESTRICTED TWO FAMILY RESIDENTIAL. SEE GR LEASE DISCUSSION IN IMP. DESCRIP Zoning compliance 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): Present use Other use, attach description. Utilities Public Other Public Other Off site Improvements Type Public Private Electricity Water Street ASPHALT Gas Sanitary sewer Alley YEAR BUILT EST. 1980 Are there any apparent adverse site conditions (easements, encroachments, special assessments, slide areas, etc.)? Yes No If Yes, attach description. Source(s) used for physical characteristics of property: Interior and exterior inspection Exterior inspection from street Previous appraisal files MLS Assessment and tax records Prior inspection Property owner Other (Describe): LAND VALUE= 459884,PRICE/SF=$31 No. of Stories 2 Type (Det./Att.) DET Exterior Walls STUCCO Roof Surface COMPOSITION Manufactured Housing Yes No Does the property generally conform to the neighborhood in terms of style, condition and construction materials? 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. 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. SUBJECT NEIGHBORHOOD SITE IMPROVEMENTS QUANTITATIVE SALES COMPARISON ANALYSIS Certified General Appraisals(510)569 4490 www.appraisalprep.com 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 3 sales ranging in sales price from $ 1,429,750 to $ 1,505,000. My research revealed a total of 3 listings ranging in list price from $ 752,745 to $ 1,520,050. The analysis of the comparable sales below reflects market reaction to significant variations between the sales and the subject property. FEATURE SUBJECT SALE 1 SALE 2 SALE 3 1107 1123 FRANCISCO STR 1335 SHATTUCK AVENUE 2716 WEBSTER STREET 1804 62nd Street Address BERKELEY BERKELEY BERKELEY BERKELEY Proximity to Subject 1.43 miles 2.50 miles 2.15 miles Sales Price $ MKT VALUE $ 1,505,000 $ 1,100,000 $ 749,000 Price/Gross Living Area $ N/A / $ 179.19 / $ 217.69 / $ 124.38 / Data & Verification Sources DEED DOC # 20976 DEED DOC # 2008 231444 MLS# 40434049 (ACT. LISTING) VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +( )$ Adjust. DESCRIPTION +( )$ Adjust. DESCRIPTION +( )$ Adjust. Sales or Financing Concessions Date of Sale/Time Location Site View Design (Style) Actual Age (Yrs.) Condition AVERAGE 14,946 2 STO AP BLDG 29 AVERAGE BANK LOAN 74 2/1/08 EQUAL 8765 2 STO AP BD/EQ 99 EQUAL 109,300 +8,370 0 0 +7,000 BANK LOAN 40 7/17/08 INFERIOR 6800 2 STO AP BD/EQ 49 EQUAL 59,800 +33,000 +9,850 0 0 +2,000 SALE/LIST=99% 44 10/14/09 INFERIOR 2835 2 STO AP BD/EQ 94 EQUAL 7,500 3,400 +22,470 +12,820 0 0 +6,500 Above Grade Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Room Count 49 31 18 38 13 13 +20,500 15 10 5 +27,500 21 9 7 +27,500 Gross Living Area 10,740 Sq. Ft. 8,399 Sq. Ft. +35,115 5,053 Sq. Ft. +85,305 6,022 Sq. Ft. +70,770 Basement & Finished Rooms Below Grade Garage/Carport STORAGE=YES SECURITY=YES 9 YES YES 30 52,500 YES YES 18 22,500 YES YES 6 +7,500 NO. OF UNITS 9 13 0 5 0 7 0 PRICE/UNIT $ N/A 115,770 220,000 107,000 Net Adj. (total) + $ 90,815 + $ 75,355 + $ 136,660 Adjusted Sales Price Net 6.0 % Net 6.9 % Net 18.2 % of Comparables Gross 15.5 % $ 1,414,185 Gross 21.8 % $ 1,175,355 Gross 21.2 % $ 885,660 Date of Prior Sale 3/1/1986 7/2/1990 6/14/04 2/2/1986 Price of Prior Sale $ 99 YR LEASE $ UNKN NO PUBLIC DATA $ 980,000 $ UNKN NO PUBLIC DATA Analysis of any current agreement of sale, option, or listing of the subject property and analysis of the prior sales of subject and comparables: OWNERSHIP HISTORY: BERKELEY UNIFIED SCHOOL DISTRICT HAS OWNED THIS PROPERTY SINCE MARCH 1, 1986 PER ALAMEDA CO. RECORDS. Summary of sales comparison and value conclusion: MOST WEIGHT WAS GIVEN TO COMPS # 1 & #2 DUE TO UNIT COUNT, GLA, PROXIMITY, RECENT SALE, AND MOST SIMILAR FEATURES. COMP # 3 PROVIDES SUPPORT FOR THE VALUE ESTIMATE. COMPS USED WERE THE BEST CLOSED AND LISTED SALES AT TIME OF INSPECTION. ADEQUATE WEIGHT IS GIVEN TO THE ACTIVE LISTINGS AS THEY INDICATE THE HIGHEST "ASKING PRICES" IN A DECLINING MARKET. SALE #1SALE #2SALE #3 REQUIRED SURPLUS LAND ADJUSTMENTS DUE TO SITE SIZE DIFFERENCES. SEE SURPLUS LAND ADDENDUM. TYPICAL APT. BUYERS WOULD MOST LIKELY MAKE THEIR FINAL OFFER/BUY DECISION BY APPLYING A REASONABLE PRICE/UNIT COMPARISON WHICH THE DATA SHOWED AVG. P/U OF $ 147590.APPRAISER ASSIGNED A PRICE/ UNIT OF $ 127745,BASED ON CONSIDERING RELEVANT MARKET DATA. This appraisal is made "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. EXTERIOR INSPECTION REVEALED NO VISIBLE EXTERIOR DEFECTS. BASED ON AN EXTERIOR INSPECTION FROM THE STREET OR AN INTERIOR AND EXTERIOR INSPECTION, I ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THIS REPORT TO BE $ 1,150,000, AS OF 11/25/2009. PAGE 1 OF 3 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE File No. 29930NF 1 Page #2 Fannie Mae Form 2055 9 96
File No. 29930NF 1 Page #3 PUD Desktop Underwriter Quantitative Analysis Appraisal Report File No. 29930NF 1 Project Information for PUDs (If applicable) Is the developer/builder in control of the Home Owners' Association (HOA)? Yes 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 NOT APPLICABLE Total number of units NOT APPLICABLE Total number of units sold NOT APPLICABLE 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? Yes No If yes, date of conversion: Does the project contain any multi dwelling units? Yes No Data Source: Are the common elements completed? Yes No If No, describe status of completion: 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: CONDOMINIUM 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 NOT APPLICABLE 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 the project, quality of construction, unit mix, etc.: Are the common elements completed? Yes No If No, describe status of completion: 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: 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 judgment. 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 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. PAGE 2 OF 3 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE Fannie Mae Form 2055 9 96
File No. 29930NF 1 Page #4 Desktop Underwriter Quantitative Analysis Appraisal Report APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: File No. 29930NF 1 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 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: NAPOLEON FORTE, ASA. MANAGING APPRAISER SUPERVISORY APPRAISER (ONLY IF REQUIRED): Signature: Name: NAPOLEON FORTE, ASA.MANAGING APPRAISER Company Name: CERTIFIED GENERAL APPRAISAL SERVICES Company Address: 306 PENDLETON WAY OAKLAND, CA 94621 Date of Report/Signature: November 28, 2009 State Certification #: AG011918 or State License #: CERTIFIED GENERAL APPRAISER State: CA Expiration Date of Certification or License: 10/13/10 Signature: Name: Company Name: Company Address: Date of Report/Signature: State Certification #: or State License #: State: Expiration Date of Certification or License: ADDRESS OF PROPERTY APPRAISED: 1107 1123 FRANCISCO STREET BERKELEY, CA 94702 APPRAISED VALUE OF SUBJECT PROPERTY $ EFFECTIVE DATE OF APPRAISAL/INSPECTION LENDER/CLIENT: Name: Company Name: Company Address: 1150000 11/25/2009 BERKELEY HOUSING AUTHORITY MS. TIA M. INGRAM, EXECUTIVE DIRECTOR BERKELEY HOUSING AUTHORITY 1901 FAIRVIEW STREET, BERKELEY, CA 94703 SUPERVISORY APPRAISER: PAGE 3 OF 3 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 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE Fannie Mae Form 2055 9 96
Subject Photos: Front, Rear and Street 1107 1123 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 File No. 29930NF 1 Page #5 Subject Front 1107 1123 FRANCISCO STREET Sales Price MKT VALUE G.B.A. Age/Yr.Blt. 29 Subject Side View (Driveby Appraisal) Subject Street Form PICPIX.SC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Comparable Photo Page 1107 1123 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 File No. 29930NF 1 Page #6 Comparable 1 1335 SHATTUCK AVENUE Prox. to Subject 1.43 miles Sale Price 1,505,000 Gross Living Area 8,399 Total Rooms 38 Total Bedrooms 13 Total Bathrooms 13 Location EQUAL View Site 8765 Quality Age 99 Comparable 2 2716 WEBSTER STREET Prox. to Subject 2.50 miles Sale Price 1,100,000 Gross Living Area 5,053 Total Rooms 15 Total Bedrooms 10 Total Bathrooms 5 Location INFERIOR View Site 6800 Quality Age 49 Comparable 3 1804 62nd Street Prox. to Subject 2.15 miles Sale Price 749,000 Gross Living Area 6,022 Total Rooms 21 Total Bedrooms 9 Total Bathrooms 7 Location INFERIOR View Site 2835 Quality Age 94 Form PICPIX.CR "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
on of Building and Property Impr File No. 29930NF 1 Page #7 File No. 29930NF 1 1107 1123 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 DESCRIPTION OF PROPERTY IMPROVEMENTS The subject building was inspected from the exterior only as this was a drive by appraisal per client's instructions. The 10,470 sq. ft. gross building is a typical walkup multifamily dwelling built around 1980 90's. Upkeep by regularly scheduled maintenance has been adequate as the building is in average condition. Exterior painting is adequate. Street visibility, access, and setbacks are adequate. The design and curb appeal is typical for the Berkeley market area. The site is located within close proximity to the University of California Berkeley campus which gives it added locational value to potential tenants. Landscaping is adequate with native plants and trees. The construction is wood frame with painted stucco siding. Driveways and parking is judged to be adequate. All utilities are connected to the site and appear to be operating properly. The roof appears to be water tight with no evidence of leaks and appears to have a remaining economic life of at least 25 30 years. No visible exterior defects or deferred maintenance were observed during my exterior inspection. The subject property should compete well for all tenant types within the Berkeley market area and beyond. It should command competitve market rents based on its present condition. Ownership History The subject property is under a 99 year ground lease to the Berkeley Housing Authority (BHA) from the Berkeley Unified School District (BUSD). This appraisal derived the market value of the subject property based on a unencumber "Fee Simple" interest and not on the "Leasehold" interest. Because a current sale of the leasehold interest would carry with it the existing lease and since the lease is for a term of 99 years with 76 years remaining (lease began 1986), and at the end of the lease reversion of buildings and improvements go back to the Berkeley Unified School District, a Fee Simple interest value would be the most probable selling price set by the BHA and around that same value would be the most likely price a potential buyer would be willing to pay for the right to own the leasehold interest in the property. The present value of the ground lease is minor compared to the value of the present value of the buildings with their earnings potential over time. And there are 76 years left on the ground lease. Therefore, it would makes sense for the lessee to sell its interest based on the full value of the building and land due to the long term nature of the existing ground lease. There were an adequate number of multi family sales to establish the present market value of the subject property based solely on the sales comparison method. Traditionally, the income method is employed. However, due to the number of verifiable multi family sales, the value produced by the sales comparison method is judged to be accurate, reliable and credible. The subject has the following unit breakdown per Berkeley Housing Authority: LIPH / RHC P Prop. # Unit # # BR # Bath Type Approx. Sq. Footage APN # Building Type LIPH 1 1 1107 Francisco St. 4 2 B4 58 2129 16 townhouse 1,283.12 LIPH 1 2 1109 Francisco St. 3 2 A3 58 2129 16 townhouse 1,067.50 LIPH 1 3 1111 Francisco St. 3 2 A3 58 2129 16 townhouse 1,067.50 LIPH 1 4 1113 Francisco St. 3 2 A3 58 2129 16 townhouse 1,067.50 LIPH 1 5 1115 Francisco St. 4 2 B4 58 2129 16 townhouse 1,283.12 LIPH 1 6 1117 Francisco St. 4 2 B4 58 2129 16 townhouse 1,283.12 LIPH 1 7 1119 Francisco St. 3 2 A3 58 2129 16 townhouse 1,067.50 LIPH 1 8 1121 Francisco St. 3 2 A3 58 2129 16 townhouse 1,067.50 LIPH 1 9 1123 Francisco St. 4 2 B4 58 2129 16 townhouse Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Subject Plat Map File No. 29930NF 1 Page #8 1107 1123 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 Form MAP.PLAT "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Surplus Land Addendum File No. 29930NF 1 Page #9 File No. 29930NF 1 1107 1123 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 SURPLUS LAND ADDENDUM ****************************************************************************************** COMPARABLES#1, #2 & #3 WERE ADJUSTED FOR SURPLUS LAND. SURPLUS LAND IS THE DIFFERENCE OF AT LEAST 25% OF ADDITIONAL SF OF ONE PROPERTY VS. ANOTHER. THE SQUARE FOOTAGE UP TO 25% IS VALUED AT $2 PER SQUARE BEYOND 25%, THE SQUARE FOOTAGE IS VALUED AT $1 PER SQUARE FOOT. THE ACTUAL SURPLUS LAND ADJUSTMENTS ARE SHOWN IN THE REPORT. THE SAMPLE BELOW EXPLAINS THIS CALCULATIONS. SURPLUS LAND CALULATION EXAMPLE **************************************************** SUBJECT SITE SIZE 5,000 SF COMP SITE SIZE 8,500 SF CALCULATE WHAT POINT IS CONSIDERED EXCESS LAND? SUBECT(SMALLEST SIZE) SURPLUS POINT 5,000 SF X1.25 6,250 SF HOW SURPLUS LAND IS VALUED? SURPLUS LAND POINT 6,250 SF ( LESS ) SUBJECT SITE 8,500 SF ACTUAL EXCESS 2,250 SF X $1/SF = $2,500 CALCULATE NORMAL LAND VALUE: SURPLUS LAND POINT 6250 SF (LESS) SUBJECT SITE 5000 SF NORMAL LAND VALUE 1250 SF X $2/SF = $2,500 TOTAL ADJUSTMENTS FOR EXCESS LAND : NORMAL LAND VALUE $2,500 SURPLUS LAND VALUE $2,250 TOTAL ADJUSTMENT $4,750 QUESTIONS AND ANSWERS: IS THIS SITE SIZE TYPICAL FOR THIS MARKET AREA? YES X NO ARE EASEMENTS ON PROPERTY S PLAT MAP? YES_X NO CAN THE EXCESS LAND BE SUBDIVIDED? YES_X NO PROBABILITY OF OWNE SUBDIVIDING? GOOD X NOT GOOD EFFECTS ONE MARKETABILITY OF THIS PROPERTY? SIGNIFICANT X NOT SIGNIFICANT Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
for Market Conditions Adjustmen File No. 29930NF 1 Page #10 File No. 29930NF 1 1107 1123 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 The market data collected by Zillow is judged to be reliable based on price change only. The market data below is for single family homes in Berkeley. However, the multifamily prices tend to lag and match the same trends as the single family market based on discussions with market participants and appraiser's own knowledge. No appraiser adjustments have been made to the Zillow price data. The data confirms what is already known by the buyers and sellers in the Berkeley market and that is prices have been in declined since late 2006. The data also show how Berkeley's residential housing trends compare with the entire US housing market. We have made a 3.5 %/year depreciation adjustment to the comparables to show market decline from the date a comp was sold to the date of inspection by the appraiser. Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Berkeley Rent Control Addendum File No. 29930NF 1 Page #11 File No. 29930NF 1 1107 1123 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 2009 2010 RENT BOARD ALLOWABLE INCREASE RENT STABILIZATION BOARD PUBLIC NOTICE 2010 ANNUAL GENERAL ADJUSTMENT ADOPTED At i t s regular meeting on October 19, 2009, the Berkeley Rent Stabilization Board adopted the Annual General Adjustment (AGA) Order for Year 2010 which will allow eligible landlords to increase the 2009 permanent rent ceilings by 0.1%. The 2010 AGA of 0.1% represents 65% of the increase in the Consumer Price Index (CPI) for All Urban Consumers in the Bay Area during the 2008 fiscal year, which was 0.266 % as posted by the Bureau of Labor Statistics in July 2009. The 65% of CPI formula was approved by the voters in the November 2004 general municipal election. The 2010 AGA may not be charged to tenants whose tenancy began on or after January 1, 2009, and who had their rents set pursuant to the Costa Hawkins Rental Housing Act. The Order also sets forth the conditions for qualifying for this rent increase and the notice that must be given to tenants in order to raise the rent. The full text of the regulation and order may be viewed in the Rent Board office at 2125 Milvia Street or at www.ci.berkeley.ca.us/rent/. If you have any questions, you may contact Jay Kelekian at 981 RENT (981 7368). Jay Kelekian Executive Director October 23, 2009 Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Berkeley Rent Control Addendum File No. 29930NF 1 Page #12 File No. 29930NF 1 1107 1123 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 1. Overview 2. Registration Requirement to register Exemptions Consequences of failing to register Guide to Berkeley's Rent Stabilization Program Rent Control & Eviction Protection (updated for January 2008) Other city of Berkeley requirements for landlords 3. Rent levels Calculating the lawful rent ceiling Rent ceiling increases Rent ceiling decreases Hearings Certification of rent ceilings 4. Subletting and replacing roommates Subletting generally Replacement tenants Chapters 1 3 Chapters 4 6 Table of Contents Partial turnovers in tenancies when a vacancy increase may be imposed 5. Security deposits state and local law State law regarding security deposits Berkeley law regarding security deposits and interest on deposits 6. Evictions Proceed with caution Eviction checklist local requirements Good cause required The eviction process Improper landlord actions Annual General Adjustments (AGA s) General calendar Home Web Policy Text Only Site Map Contact Us Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Location Map for Subject and Comps File No. 29930NF 1 Page #13 1107 1123 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 Form MAP.LOC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Scope of Work for this Assignmen File No. 29930NF 1 Page #14 File No. 29930NF 1 1107 1123 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 SCOPE OF WORK Certified General Appraisal Services has prepared a Drive by Summary Narrative Appraisal Report of the subject property in accordance with all applicable governmental requirements, as well as standards and requirements adopted and advanced by the Appraisal Institute and the Society of Real Estate Appraisers. The purpose of this appraisal is to estimate the "as is" market value of the subject. The function is to provide a market value opinion to the intended user, the Berkeley Housing Authority. The property was physically inspected for the street as a drive by inspection.. Land and building areas were verified, Land use controls including zoning and master planning documents were reviewed. Analysis of market conditions relevant to this property included research for comparable sales in Berkeley and adjacent cities and competitive locations. Qualitative and Quantitative analyses of sales, rental, and investment data were made which lead to the conclusions supporting the final estimate of market value. All appraisal reports will contain the following: 1. A review of the prior, current and potential uses of each site, using: a) Discussions with city, county and applicable regulatory staff b) Title searches c) Permits and land uses obtained and held by property owners d) Appropriate agency records to survey the areas surrounding the designated properties. 2. A property description and evaluation, including and confirming: a) Assessor's Parcel Number (APN) b) Legal description c) Plat map d) Ownership history e) Site description f) Description of property improvements, if any g) Neighborhood description h) Descriptions of current or pending changes in zoning i) Highest and best use of the affected property j) Description(s) of comparable site(s) used k) Comparative analysis of subject and comparable site(s) I) Description or illustration of appropriate appraisal approach(es) used* m) Price per unit of comparison analyzed n) Fee simple, leased or other operating data o) Reconciliation and final value estimates ** (Note: While Certified General Appraisal Services may expect and choose to use the three approaches typically employed Cost, Income and Comparable Sales, the Berkeley Housing Authority is primarily interested in appraised values based on the sales of comparable properties, especially in view of the below market rents that are customarily charged for Authority owned rental property.) 3. Each appraisal report must also include the appraiser's certification and statement of limiting conditions. Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29930NF 1 Page #15 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 institutiona 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 judgment. STATEMENT OF LIMITING CONDITIONS AND CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The inspector's certification that appears in the appraisal report is subject to the following conditions: 1. The inspector 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 valued on the basis of it being under responsible ownership. 2. Any sketch provided in the appraisal report may show approximate dimensions of the improvements and is included only to assist the reader of the report in visualizing the property. The inspector has made no survey of the property. 3. The inspector 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. Any distribution of valuation between land and improvements in the report applies only under the existing program of utilization. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 5. The inspector has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous waste, 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, express or implied, regarding the condition of the property. The inspector 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. 6. The inspector 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 inspector does not assume responsibility for the accuracy of such items that were furnished by other parties. 7. The inspector will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 8. The inspector has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 9. The inspector 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 inspector's identity and professional designations, and references to any professional appraisal organizations or the firm with which the inspector 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 property description section of the report only to data collection or reporting service(s) without having to obtain the inspector's prior written consent. The inspector'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. 10. The inspector is not an employee of the company or individual(s) ordering this report and compensation is not contingent upon the reporting of a predetermined value or direction of value or upon an action or event resulting form the analysis, opinions, conclusions, or the use of this report. This assignment is not based on a required minimum, specific valuation, or the approval of a loan. Page 1 of 2 Certified General Appraisals(510)569 4490 www.appraisalprep.com Form DLC_DEFD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29930NF 1 Page #16 CERTIFICATION: The inspector certifies and agrees that: 1. 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. 2. I have no present or prospective interest in the property that is the subject to 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, 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. 3. 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 analysis is contingent on the appraised value of the property. 4. I performed this analysis in conformity with 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 this appraisal. 5. I have personally inspected the exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. To the best of my knowledge and belief, all statements and information in this report are true and correct, and I have not knowingly withheld any significant information. 6. I personally prepared all conclusions and opinions about the real estate that were set forth in the inspection. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. ADDRESS OF PROPERTY ANALYZED: 1107 1123 FRANCISCO STREET, BERKELEY, CA 94702 INSPECTOR: Signature: Name: NAPOLEON FORTE, ASA.MANAGING APPRAISER Date Signed: November 28, 2009 State Certification #: AG011918 or State License #: CERTIFIED GENERAL APPRAISER State: CA Expiration Date of Certification or License: 10/13/10 Page 2 of 2 Form DLC_DEFD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29931RB/RB 1161 1175 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 TABLE OF CONTENTS Invoice... 1 Opinion of Value: $ 952,000 or $135,949/Unit : Driveby Appraisal Form 2055... 2 Subject Photos: Front, Rear and Street... 5 Description of Building and Property Improvements... 6 Comparable Photos 1 3... 7 Surplus Land Addendum... 8 Support for Market Conditions Adjustment (Time)... 9 Berkeley Rent Control Addendum... 10 Scope of Work for this Assignment... 12 Location Map... 13 Plat Map... 14 Statement of Limiting Conditions for Driveby Appraisal... 15 Form TOCPPIX "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Desktop Underwriter Quantitative Analysis Appraisal Report File No. 29931RB/RB THIS SUMMARY APPRAISAL REPORT IS INTENDED FOR USE BY THE LENDER/CLIENT FOR A MORTGAGE FINANCE TRANSACTION ONLY. 1161 1175 FRANCISCO STREET City BERKELEY State CA Zip Code 94702 Legal Description SEE LEGAL ADDENDUM (THIS IS A USPAP SUMMARY REPORT PER DRIVEBY SCOPE OCounty ALAMEDA Assessor's Parcel No. 058 2129 015 Tax Year 09 10 R.E. Taxes $ EXEMPT PUBSpecial Assessments $ Borrower Current Owner BERKELEY UNIFIED SCHOOL DIST Occupant Owner Tenant Vacant Neighborhood or Project Name BERKELEY (7 UNIT APT BUILDING) Project Type PUD Condominium HOA $ /Mo. Sales Price $ MKT VALUE Date of Sale 11/25/2009 Description / $ amount of loan charges/concessions to be paid by seller Property rights appraised Fee Simple Leasehold Map Reference 626 E1 Census Tract 4222.00/3 Note: Race and the racial composition of the neighborhood are not appraisal factors. Location Urban Suburban Rural Property values Increasing Stable Declining Single family housing Condominium housing PRICE AGE PRICE (if applic.) AGE Built up Over 75% 25 75% Under 25% Demand/supply Shortage In balance Over supply $(000) (yrs) $(000) (yrs) Growth rate Rapid Stable Slow Marketing time Under 3 mos. 3 6 mos. Over 6 mos. 729 Low 49 NA Low NA Neighborhood boundaries SEE LOCATION MAP FOR GENERAL BOUNDARIES. NEIGHBORHOOD HAS 1,510 High 99 NA High NA HOMOGENEOUS MARKET VALUES. RADUIS OF VALUE = 0 mi to 2.41.SINGLE FAMILY PRICE Predominant Predominant RANGE HEADING = MULTI FAMILY PRICE RANGES AS FORM HAS BEEN MODIFIED. 1,110 74 Dimensions 75FT X 220FT Site area 16,500 Shape RECTANGULAR Specific zoning classification and description R 2 RESTRICTED TWO FAMILY RESIDENTIAL SEE GR LEASE DISCUSSION IN IMP. DESCRIP Zoning compliance 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): Present use Other use, attach description. Utilities Public Other Public Other Off site Improvements Type Public Private Electricity Water Street ASPHALT Gas Sanitary sewer Alley YEAR BUILT EST. 1960 Are there any apparent adverse site conditions (easements, encroachments, special assessments, slide areas, etc.)? Yes No If Yes, attach description. Source(s) used for physical characteristics of property: Interior and exterior inspection Exterior inspection from street Previous appraisal files MLS Assessment and tax records Prior inspection Property owner Other (Describe): LAND VALUE= 380657,PRICE/SF=$23 No. of Stories 2 Type (Det./Att.) DET Exterior Walls STUCCO Roof Surface COMPOSITION Manufactured Housing Yes No Does the property generally conform to the neighborhood in terms of style, condition and construction materials? 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. 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. SUBJECT NEIGHBORHOOD SITE IMPROVEMENTS QUANTITATIVE SALES COMPARISON ANALYSIS Certified General Appraisals(510)569 4490 www.appraisalprep.com 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 3 sales ranging in sales price from $ 1,429,750 to $ 1,505,000. My research revealed a total of 3 listings ranging in list price from $ 732,645 to $ 1,520,050. The analysis of the comparable sales below reflects market reaction to significant variations between the sales and the subject property. FEATURE SUBJECT SALE 1 SALE 2 SALE 3 1161 1175 FRANCISCO STR 1335 SHATTUCK AVENUE 2716 WEBSTER STREET 1523 FAIRVIEW STREET Address BERKELEY BERKELEY BERKELEY BERKELEY Proximity to Subject 1.32 miles 2.41 miles 1.75 miles Sales Price $ MKT VALUE $ 1,505,000 $ 1,100,000 $ 729,000 Price/Gross Living Area $ N/A / $ 179.19 / $ 217.69 / $ 165.83 / Data & Verification Sources DEED DOC #2008 24731 DEED DOC # 2008 231444 DEED DOC#2008 231970 VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +( )$ Adjust. DESCRIPTION +( )$ Adjust. DESCRIPTION +( )$ Adjust. Sales or Financing Concessions Date of Sale/Time Location Site View Design (Style) Actual Age (Yrs.) Condition AVERAGE 16,500 2 STO AP BLDG 49 AVERAGE BANK LOAN 74 2/1/08 EQUAL 8765 2 STO AP BD/EQ 99 EQUAL 109,300 +9,930 0 0 +5,000 BANK LOAN 40 7/17/08 INFERIOR 6800 2 STO AP BD/EQ 49 EQUAL 59,800 +33,000 +11,400 0 0 BANK LOAN 88 07/29/08 INFERIOR 6800 2 STO AP BD/EQ 63 EQUAL 38,700 +21,870 +11,400 0 0 +1,400 Above Grade Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Room Count 38 24 14 38 17 13 +7,500 15 10 5 +18,500 20 8 6 +20,000 Gross Living Area 8,000 Sq. Ft. 8,399 Sq. Ft. 5,985 5,053 Sq. Ft. +44,205 4,396 Sq. Ft. +54,060 Basement & Finished Rooms Below Grade Garage/Carport STORAGE=YES SECURITY=YES 7 YES YES 1 +15,000 YES YES 5 +5,000 YES YES 5 +5,000 NO. OF UNITS 7 13 0 5 0 6 0 PRICE/UNIT $ N/A 115,770 220,000 121,500 Net Adj. (total) + $ 77,855 + $ 52,305 + $ 75,030 Adjusted Sales Price Net 5.2 % Net 4.8 % Net 10.3 % of Comparables Gross 10.1 % $ 1,427,145 Gross 15.6 % $ 1,152,305 Gross 20.9 % $ 804,030 Date of Prior Sale 3/1/1986 7/2/1990 6/14/04 5/27/2004 Price of Prior Sale $ 99 YR LEASE $ UNKN NO PUBLIC DATA $ 980,000 $ $725,000 Analysis of any current agreement of sale, option, or listing of the subject property and analysis of the prior sales of subject and comparables: OWNERSHIP HISTORY: BERKELEY UNIFIED SCHOOL DISTRICT HAS OWNED THIS PROPERTY SINCE MARCH 1, 1986 PER ALAMEDA CO. RECORDS. Summary of sales comparison and value conclusion: MOST WEIGHT WAS GIVEN TO COMPS # 1 & #2 DUE TO UNIT COUNT, GLA, PROXIMITY, RECENT SALE, AND MOST SIMILAR FEATURES. COMP # 3 PROVIDES SUPPORT FOR THE VALUE ESTIMATE. COMPS USED WERE THE BEST CLOSED AND LISTED SALES AT TIME OF INSPECTION. ADEQUATE WEIGHT IS GIVEN TO THE ACTIVE LISTINGS AS THEY INDICATE THE HIGHEST "ASKING PRICES" IN A DECLINING MARKET. SALE #1SALE #2SALE #3 REQUIRED SURPLUS LAND ADJUSTMENTS DUE TO SITE SIZE DIFFERENCES. SEE SURPLUS LAND ADDENDUM. TYPICAL APT. BUYERS WOULD MOST LIKELY MAKE THEIR FINAL OFFER/BUY DECISION BY APPLYING A REASONABLE PRICE/UNIT COMPARISON WHICH THE DATA SHOWED AVG. P/U OF $ 152423.APPRAISER ASSIGNED A PRICE/ UNIT OF $ 135949,BASED ON CONSIDERING RELEVANT MARKET DATA. This appraisal is made "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. EXTERIOR INSPECTION REVEALED NO VISIBLE EXTERIOR DEFECTS. BASED ON AN EXTERIOR INSPECTION FROM THE STREET OR AN INTERIOR AND EXTERIOR INSPECTION, I ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THIS REPORT TO BE $ 952,000, AS OF 11/25/2009. PAGE 1 OF 3 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE File No. 29931RB/RB Page #2 Fannie Mae Form 2055 9 96
File No. 29931RB/RB Page #3 PUD Desktop Underwriter Quantitative Analysis Appraisal Report File No. 29931RB/RB Project Information for PUDs (If applicable) Is the developer/builder in control of the Home Owners' Association (HOA)? Yes 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 NOT APPLICABLE Total number of units NOT APPLICABLE Total number of units sold NOT APPLICABLE 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? Yes No If yes, date of conversion: Does the project contain any multi dwelling units? Yes No Data Source: Are the common elements completed? Yes No If No, describe status of completion: 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: CONDOMINIUM 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 NOT APPLICABLE 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 the project, quality of construction, unit mix, etc.: Are the common elements completed? Yes No If No, describe status of completion: 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: 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 judgment. 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 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. PAGE 2 OF 3 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE Fannie Mae Form 2055 9 96
File No. 29931RB/RB Page #4 Desktop Underwriter Quantitative Analysis Appraisal Report APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: File No. 29931RB/RB 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 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: NAPOLEON FORTE, ASA. MANAGING APPRAISER SUPERVISORY APPRAISER (ONLY IF REQUIRED): Signature: Name: NAPOLEON FORTE, ASA.MANAGING APPRAISER Company Name: CERTIFIED GENERAL APPRAISAL SERVICES Company Address: 306 PENDLETON WAY OAKLAND, CA 94621 Date of Report/Signature: December 02, 2009 State Certification #: AG011918 or State License #: CERTIFIED GENERAL APPRAISER State: CA Expiration Date of Certification or License: 10/13/10 Signature: Name: Company Name: Company Address: Date of Report/Signature: State Certification #: or State License #: State: Expiration Date of Certification or License: ADDRESS OF PROPERTY APPRAISED: 1161 1175 FRANCISCO STREET BERKELEY, CA 94702 APPRAISED VALUE OF SUBJECT PROPERTY $ EFFECTIVE DATE OF APPRAISAL/INSPECTION LENDER/CLIENT: Name: Company Name: Company Address: 952000 11/25/2009 MS. TIA M. INGRAM, EXECUTIVE DIRECTOR BERKELEY HOUSING AUTHORITY 1901 FAIRVIEW STREET, BERKELEY, CA 94703 SUPERVISORY APPRAISER: PAGE 3 OF 3 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 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE Fannie Mae Form 2055 9 96
Subject Photos: Front, Rear and Street 1161 1175 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 File No. 29931RB/RB Page #5 Subject Front 1161 1175 FRANCISCO STREET Sales Price MKT VALUE G.B.A. Age/Yr.Blt. 49 Subject Side View (Driveby Appraisal) Subject Street Form PICPIX.SC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
on of Building and Property Impr File No. 29931RB/RB Page #6 File No. 29931RB/RB 1161 1175 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 DESCRIPTION OF PROPERTY IMPROVEMENTS The subject building was inspected from the exterior only as this was a drive by appraisal per client's instructions. The 8,000 sq. ft. gross building is a typical walkup multifamily dwelling built around 1980 90's. Upkeep by regularly scheduled maintenance has been adequate as the building is in average condition. Exterior painting is adequate. Street visibility, access, and setbacks are adequate. The design and curb appeal is typical for the Berkeley market area. The site is located within close proximity to the University of California Berkeley campus which gives it added locational value to potential tenants. Landscaping is adequate with native plants and trees. The construction is wood frame with painted stucco siding. Driveways and parking is judged to be adequate. All utilities are connected to the site and appear to be operating properly. The roof appears to be water tight with no evidence of leaks and appears to have a remaining economic life of at least 25 30 years. No visible exterior defects or deferred maintenance were observed during my exterior inspection. The subject property should compete well for all tenant types within the Berkeley market area and beyond. It should command competitve market rents based on its present condition. Ownership History The subject property is under a 99 year ground lease to the Berkeley Housing Authority (BHA) from the Berkeley Unified School District (BUSD). This appraisal derived the market value of the subject property based on a unencumber "Fee Simple" interest and not on the "Leasehold" interest. Because a current sale of the leasehold interest would carry with it the existing lease and since the lease is for a term of 99 years with 76 years remaining (lease began 1986), and at the end of the lease reversion of buildings and improvements go back to the Berkeley Unified School District, a Fee Simple interest value would be the most probable selling price set by the BHA and around that same value would be the most likely price a potential buyer would be willing to pay for the right to own the leasehold interest in the property. The present value of the ground lease is minor compared to the value of the present value of the buildings with their earnings potential over time. And there are 76 years left on the ground lease. Therefore, it would makes sense for the lessee to sell its interest based on the full value of the building and land due to the long term nature of the existing ground lease. There were an adequate number of multi family sales to establish the present market value of the subject property based solely on the sales comparison method. Traditionally, the income method is employed. However, due to the number of verifiable multi family sales, the value produced by the sales comparison method is judged to be accurate, reliable and credible. The subject has the following unit breakdown per Berkeley Housing Authority: LIP H/ RHC P Pro p. # Unit # # BR # Bath Typ e Approx. Sq. Footage APN # Building Type LIPH 2 10 1161 Francisco St. 3 2 H3 58 2129 15 single level 1,072.00 LIPH 2 11 1163 Francisco St. 3 2 C3 58 2129 15 townhouse 1,055.84 LIPH 2 12 1165 Francisco St. 4 2 D4 58 2129 15 townhouse 1,253.46 LIPH 2 13 1169 Francisco St. 3 2 C3 58 2129 15 townhouse 1,055.84 LIPH 2 14 1171 Francisco St. 4 2 D4 58 2129 15 townhouse 1,253.46 LIPH 2 15 1173 Francisco St. 3 2 C3 58 2129 15 townhouse 1,055.84 LIPH 2 16 1175 Francisco St. 4 2 D4 1,253.46 58 2129 15 townhouse Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Comparable Photos 1 3 1161 1175 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 File No. 29931RB/RB Page #7 Comparable 1 1335 SHATTUCK AVENUE Sales Price 1,505,000 G.B.A. Age/Yr. Blt. 99 Comparable 2 2716 WEBSTER STREET Sales Price 1,100,000 G.B.A. Age/Yr. Blt. 49 Comparable 3 1523 FAIRVIEW STREET Sales Price 729,000 G.B.A. Age/Yr. Blt. 63 Form PICPIX.CC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Surplus Land Addendum File No. 29931RB/RB Page #8 File No. 29931RB/RB 1161 1175 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 SURPLUS LAND ADDENDUM ****************************************************************************************** COMPARABLES#1, #2 & #3 WERE ADJUSTED FOR SURPLUS LAND. SURPLUS LAND IS THE DIFFERENCE OF AT LEAST 25% OF ADDITIONAL SF OF ONE PROPERTY VS. ANOTHER. THE SQUARE FOOTAGE UP TO 25% IS VALUED AT $2 PER SQUARE BEYOND 25%, THE SQUARE FOOTAGE IS VALUED AT $1 PER SQUARE FOOT. THE ACTUAL SURPLUS LAND ADJUSTMENTS ARE SHOWN IN THE REPORT. THE SAMPLE BELOW EXPLAINS THIS CALCULATIONS. SURPLUS LAND CALULATION EXAMPLE **************************************************** SUBJECT SITE SIZE 5,000 SF COMP SITE SIZE 8,500 SF CALCULATE WHAT POINT IS CONSIDERED EXCESS LAND? SUBECT(SMALLEST SIZE) SURPLUS POINT 5,000 SF X1.25 6,250 SF HOW SURPLUS LAND IS VALUED? SURPLUS LAND POINT 6,250 SF ( LESS ) SUBJECT SITE 8,500 SF ACTUAL EXCESS 2,250 SF X $1/SF = $2,500 CALCULATE NORMAL LAND VALUE: SURPLUS LAND POINT 6250 SF (LESS) SUBJECT SITE 5000 SF NORMAL LAND VALUE 1250 SF X $2/SF = $2,500 TOTAL ADJUSTMENTS FOR EXCESS LAND : NORMAL LAND VALUE $2,500 SURPLUS LAND VALUE $2,250 TOTAL ADJUSTMENT $4,750 QUESTIONS AND ANSWERS: IS THIS SITE SIZE TYPICAL FOR THIS MARKET AREA? YES X NO ARE EASEMENTS ON PROPERTY S PLAT MAP? YES_X NO CAN THE EXCESS LAND BE SUBDIVIDED? YES_X NO PROBABILITY OF OWNE SUBDIVIDING? GOOD X NOT GOOD EFFECTS ONE MARKETABILITY OF THIS PROPERTY? SIGNIFICANT X NOT SIGNIFICANT Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
for Market Conditions Adjustmen File No. 29931RB/RB Page #9 File No. 29931RB/RB 1161 1175 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 The market data collected by Zillow is judged to be reliable based on price change only. The market data below is for single family homes in Berkeley. However, the multifamily prices tend to lag and match the same trends as the single family market based on discussions with market participants and appraiser's own knowledge. No appraiser adjustments have been made to the Zillow price data. The data confirms what is already known by the buyers and sellers in the Berkeley market and that is prices have been in declined since late 2006. The data also show how Berkeley's residential housing trends compare with the entire US housing market. We have made a 3.5 %/year depreciation adjustment to the comparables to show market decline from the date a comp was sold to the date of inspection by the appraiser. Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Berkeley Rent Control Addendum File No. 29931RB/RB Page #10 File No. 29931RB/RB 1161 1175 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 2009 2010 RENT BOARD ALLOWABLE INCREASE RENT STABILIZATION BOARD PUBLIC NOTICE 2010 ANNUAL GENERAL ADJUSTMENT ADOPTED At i t s regular meeting on October 19, 2009, the Berkeley Rent Stabilization Board adopted the Annual General Adjustment (AGA) Order for Year 2010 which will allow eligible landlords to increase the 2009 permanent rent ceilings by 0.1%. The 2010 AGA of 0.1% represents 65% of the increase in the Consumer Price Index (CPI) for All Urban Consumers in the Bay Area during the 2008 fiscal year, which was 0.266 % as posted by the Bureau of Labor Statistics in July 2009. The 65% of CPI formula was approved by the voters in the November 2004 general municipal election. The 2010 AGA may not be charged to tenants whose tenancy began on or after January 1, 2009, and who had their rents set pursuant to the Costa Hawkins Rental Housing Act. The Order also sets forth the conditions for qualifying for this rent increase and the notice that must be given to tenants in order to raise the rent. The full text of the regulation and order may be viewed in the Rent Board office at 2125 Milvia Street or at www.ci.berkeley.ca.us/rent/. If you have any questions, you may contact Jay Kelekian at 981 RENT (981 7368). Jay Kelekian Executive Director October 23, 2009 Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Berkeley Rent Control Addendum File No. 29931RB/RB Page #11 File No. 29931RB/RB 1161 1175 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 1. Overview 2. Registration Requirement to register Exemptions Consequences of failing to register Guide to Berkeley's Rent Stabilization Program Rent Control & Eviction Protection (updated for January 2008) Other city of Berkeley requirements for landlords 3. Rent levels Calculating the lawful rent ceiling Rent ceiling increases Rent ceiling decreases Hearings Certification of rent ceilings 4. Subletting and replacing roommates Subletting generally Replacement tenants Chapters 1 3 Chapters 4 6 Table of Contents Partial turnovers in tenancies when a vacancy increase may be imposed 5. Security deposits state and local law State law regarding security deposits Berkeley law regarding security deposits and interest on deposits 6. Evictions Proceed with caution Eviction checklist local requirements Good cause required The eviction process Improper landlord actions Annual General Adjustments (AGA s) General calendar Home Web Policy Text Only Site Map Contact Us Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Scope of Work for this Assignmen File No. 29931RB/RB Page #12 File No. 29931RB/RB 1161 1175 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 SCOPE OF WORK Certified General Appraisal Services has prepared a Drive by Summary Narrative Appraisal Report of the subject property in accordance with all applicable governmental requirements, as well as standards and requirements adopted and advanced by the Appraisal Institute and the Society of Real Estate Appraisers. The purpose of this appraisal is to estimate the "as is" market value of the subject. The function is to provide a market value opinion to the intended user, the Berkeley Housing Authority. The property was physically inspected for the street as a drive by inspection.. Land and building areas were verified, Land use controls including zoning and master planning documents were reviewed. Analysis of market conditions relevant to this property included research for comparable sales in Berkeley and adjacent cities and competitive locations. Qualitative and Quantitative analyses of sales, rental, and investment data were made which lead to the conclusions supporting the final estimate of market value. All appraisal reports will contain the following: 1. A review of the prior, current and potential uses of each site, using: a) Discussions with city, county and applicable regulatory staff b) Title searches c) Permits and land uses obtained and held by property owners d) Appropriate agency records to survey the areas surrounding the designated properties. 2. A property description and evaluation, including and confirming: a) Assessor's Parcel Number (APN) b) Legal description c) Plat map d) Ownership history e) Site description f) Description of property improvements, if any g) Neighborhood description h) Descriptions of current or pending changes in zoning i) Highest and best use of the affected property j) Description(s) of comparable site(s) used k) Comparative analysis of subject and comparable site(s) I) Description or illustration of appropriate appraisal approach(es) used* m) Price per unit of comparison analyzed n) Fee simple, leased or other operating data o) Reconciliation and final value estimates ** (Note: While Certified General Appraisal Services may expect and choose to use the three approaches typically employed Cost, Income and Comparable Sales, the Berkeley Housing Authority is primarily interested in appraised values based on the sales of comparable properties, especially in view of the below market rents that are customarily charged for Authority owned rental property.) 3. Each appraisal report must also include the appraiser's certification and statement of limiting conditions. Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Location Map File No. 29931RB/RB Page #13 1161 1175 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 Form MAP.LOC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Plat Map File No. 29931RB/RB Page #14 1161 1175 FRANCISCO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 Form MAP.PLAT "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29931RB/RB Page #15 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 institutiona 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 judgment. STATEMENT OF LIMITING CONDITIONS AND CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The inspector's certification that appears in the appraisal report is subject to the following conditions: 1. The inspector 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 valued on the basis of it being under responsible ownership. 2. Any sketch provided in the appraisal report may show approximate dimensions of the improvements and is included only to assist the reader of the report in visualizing the property. The inspector has made no survey of the property. 3. The inspector 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. Any distribution of valuation between land and improvements in the report applies only under the existing program of utilization. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 5. The inspector has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous waste, 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, express or implied, regarding the condition of the property. The inspector 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. 6. The inspector 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 inspector does not assume responsibility for the accuracy of such items that were furnished by other parties. 7. The inspector will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 8. The inspector has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 9. The inspector 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 inspector's identity and professional designations, and references to any professional appraisal organizations or the firm with which the inspector 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 property description section of the report only to data collection or reporting service(s) without having to obtain the inspector's prior written consent. The inspector'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. 10. The inspector is not an employee of the company or individual(s) ordering this report and compensation is not contingent upon the reporting of a predetermined value or direction of value or upon an action or event resulting form the analysis, opinions, conclusions, or the use of this report. This assignment is not based on a required minimum, specific valuation, or the approval of a loan. Page 1 of 2 Certified General Appraisals(510)569 4490 www.appraisalprep.com Form DLC_DEFD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29931RB/RB Page #16 CERTIFICATION: The inspector certifies and agrees that: 1. 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. 2. I have no present or prospective interest in the property that is the subject to 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, 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. 3. 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 analysis is contingent on the appraised value of the property. 4. I performed this analysis in conformity with 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 this appraisal. 5. I have personally inspected the exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. To the best of my knowledge and belief, all statements and information in this report are true and correct, and I have not knowingly withheld any significant information. 6. I personally prepared all conclusions and opinions about the real estate that were set forth in the inspection. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. ADDRESS OF PROPERTY ANALYZED: 1161 1175 FRANCISCO STREET, BERKELEY, CA 94702 INSPECTOR: Signature: Name: NAPOLEON FORTE, ASA.MANAGING APPRAISER Date Signed: December 02, 2009 State Certification #: AG011918 or State License #: CERTIFIED GENERAL APPRAISER State: CA Expiration Date of Certification or License: 10/13/10 Page 2 of 2 Form DLC_DEFD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29933GS/GS 1360, 1370 DWIGHT WAY City BERKELEY County ALAMEDA State CA Zip Code 94702 TABLE OF CONTENTS Invoice... 1 Opinion of Value: $440,000 or $220,000 /Unit : Driveby Appraisal Form 2055... 2 Subject Photos: Front, and Street... 5 Description of Building and Property Improvements... 6 Comparable Photos 1 3... 7 Location Map... 8 Plat Map... 9 Surplus Land Addendum... 10 Support for Market Conditions Adjustment (Time)... 11 Berkeley Rent Control Addendum... 12 Scope of Work for this Assignment... 14 Subject Legal Description... 15 Statement of Limiting Conditions for Driveby Appraisal... 16 Form TOCPPIX "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Desktop Underwriter Quantitative Analysis Appraisal Report File No. 29933GS/GS THIS SUMMARY APPRAISAL REPORT IS INTENDED FOR USE BY THE LENDER/CLIENT FOR A MORTGAGE FINANCE TRANSACTION ONLY. 1360, 1370 DWIGHT WAY City BERKELEY State CA Zip Code 94702 Legal Description SEE LEGAL DESCRIPTION AND SCOPE OF WORK ATTACHED County ALAMEDA Assessor's Parcel No. 054 1783 034 Tax Year 09 10 R.E. Taxes $ EXEMPT PUBSpecial Assessments $ Borrower Current Owner BERKELEY HOUSING AUTHORITY Occupant Owner Tenant Vacant Neighborhood or Project Name BERKELEY (2 UNIT APT BUILDING) Project Type PUD Condominium HOA $ /Mo. Sales Price $ MKT VALUE Date of Sale 11/25/2009 Description / $ amount of loan charges/concessions to be paid by seller Property rights appraised Fee Simple Leasehold Map Reference 629 F3 Census Tract 4240.01 Note: Race and the racial composition of the neighborhood are not appraisal factors. Location Urban Suburban Rural Property values Increasing Stable Declining Single family housing Condominium housing PRICE AGE PRICE (if applic.) AGE Built up Over 75% 25 75% Under 25% Demand/supply Shortage In balance Over supply $(000) (yrs) $(000) (yrs) Growth rate Rapid Stable Slow Marketing time Under 3 mos. 3 6 mos. Over 6 mos. 346 Low 29 NA Low NA Neighborhood boundaries SEE LOCATION MAP FOR GENERAL BOUNDARIES. NEIGHBORHOOD HAS 520 High 109 NA High NA HOMOGENEOUS MARKET VALUES. RADUIS OF VALUE = 0 mi to 1.17.SINGLE FAMILY PRICE Predominant Predominant RANGE HEADING = MULTI FAMILY PRICE RANGES AS FORM HAS BEEN MODIFIED. 430 69 Dimensions IRREGULAR, SEE PLAT MAP ATTACH. Site area 5,603 Shape IRREGULAR Specific zoning classification and description R 2 RESTRICTED TWO FAMILY RESIDENTIAL Zoning compliance 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): Present use Other use, attach description. Utilities Public Other Public Other Off site Improvements Type Public Private Electricity Water Street ASPHALT Gas Sanitary sewer Alley YEAR BUILT EST. 1980 Are there any apparent adverse site conditions (easements, encroachments, special assessments, slide areas, etc.)? Yes No If Yes, attach description. Source(s) used for physical characteristics of property: Interior and exterior inspection Exterior inspection from street Previous appraisal files MLS Assessment and tax records Prior inspection Property owner Other (Describe): LAND VALUE= 176104,PRICE/SF=$31 No. of Stories 2 Type (Det./Att.) DET Exterior Walls STUCCO Roof Surface COMPOSITION Manufactured Housing Yes No Does the property generally conform to the neighborhood in terms of style, condition and construction materials? 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. 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. SUBJECT NEIGHBORHOOD SITE IMPROVEMENTS QUANTITATIVE SALES COMPARISON ANALYSIS Certified General Appraisals(510)569 4490 www.appraisalprep.com 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 3 sales ranging in sales price from $ 494,000 to $ 520,000. My research revealed a total of 3 listings ranging in list price from $ 347,730 to $ 525,200. The analysis of the comparable sales below reflects market reaction to significant variations between the sales and the subject property. FEATURE SUBJECT SALE 1 SALE 2 SALE 3 1360, 1370 DWIGHT WAY 2218 7TH ST 1893 ALCATRAZ AVE 1821 FAIRVIEW ST Address BERKELEY BERKELEY BERKELEY BERKELEY Proximity to Subject 0.68 miles 1.17 miles 1.00 miles Sales Price $ MKT VALUE $ 520,000 $ 346,000 $ 430,000 Price/Gross Living Area $ N/A / $ 285.40 / $ 149.27 / $ 166.15 / Data & Verification Sources MLS#40432913 DEED DOC # 244653 MLS# 181333 VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +( )$ Adjust. DESCRIPTION +( )$ Adjust. DESCRIPTION +( )$ Adjust. Sales or Financing Concessions Date of Sale/Time Location Site View Design (Style) Actual Age (Yrs.) Condition AVERAGE 5,603 2 STO AP BLDG 29 AVERAGE BANK LOAN 56 12/3/09 EQUAL 5000 VICTORIAN APTS 105 INFERIOR +500 +2,410 0 0 +7,600 +26,000 BANK LOAN 12 7/30/09 EQUAL 6800 2 STO AP BD/EQ 61 EQUAL 4,500 4,790 0 0 +3,200 BANK LOAN 175 6/09/09 EQUAL 5000 2 STO AP BD/EQ 109 EQUAL 8,000 +2,410 0 0 +8,000 Above Grade Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Room Count 11 7 4 8 4 2 +4,000 10 4 3 +3,500 11 5 3 +2,500 Gross Living Area 2,351 Sq. Ft. 1,822 Sq. Ft. +7,935 2,318 Sq. Ft. 2,588 Sq. Ft. 3,555 Basement & Finished Rooms Below Grade Garage/Carport STORAGE=YES SECURITY=YES 3 YES YES 2 +2,500 YES NO 3 YES NO 2 +2,500 NO. OF UNITS 2 2 0 3 0 3 0 PRICE/UNIT $ N/A 260,000 115,330 143,330 Net Adj. (total) + $ 50,945 + $ 2,590 + $ 3,855 Adjusted Sales Price of Comparables Net Gross 9.8 9.8 % % $ 570,945 Net Gross 0.7 4.6 % % $ 343,410 Net Gross 0.9 6.3 % % $ 433,855 Date of Prior Sale 11/4/1986 UNKN NO PUBLIC DATA UNKN NO PUBLIC DATA UNKN NO PUBLIC DATA Price of Prior Sale $ UNKNOWN $ UNKN NO PUBLIC DATA $ UNKN NO PUBLIC DATA $ UNKN NO PUBLIC DATA Analysis of any current agreement of sale, option, or listing of the subject property and analysis of the prior sales of subject and comparables: OWNERSHIP HISTORY: CITY OF BERKELEY AND NOW BERKELEY HSE AUTH. HAS OWNED PROP. SINCE 11/04/86 (1360 DWIGHT WY). Summary of sales comparison and value conclusion: MOST WEIGHT WAS GIVEN TO COMPS # 1 & #2 DUE TO UNIT COUNT, GLA, PROXIMITY, RECENT SALE, AND MOST SIMILAR FEATURES. COMP # 3 PROVIDES SUPPORT FOR THE VALUE ESTIMATE. COMPS USED WERE THE BEST CLOSED AND LISTED SALES AT TIME OF INSPECTION. ADEQUATE WEIGHT IS GIVEN TO THE ACTIVE LISTINGS AS THEY INDICATE THE HIGHEST "ASKING PRICES" IN A DECLINING MARKET. TYPICAL APT. BUYERS WOULD MOST LIKELY MAKE THEIR FINAL OFFER/BUY DECISION BY APPLYING A REASONABLE PRICE/UNIT COMPARISON WHICH THE DATA SHOWED AVG. P/U OF $ 172887. APPRAISER ASSIGNED A PRICE/ UNIT OF $ 220131 BASED ON CONSIDERING RELEVANT MARKET DATA INCLUDING ADJ. GRID. This appraisal is made "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. EXTERIOR INSPECTION REVEALED NO VISIBLE EXTERIOR DEFECTS. BASED ON AN EXTERIOR INSPECTION FROM THE STREET OR AN INTERIOR AND EXTERIOR INSPECTION, I ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THIS REPORT TO BE $ 440,000, AS OF 11/25/2009. PAGE 1 OF 3 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE File No. 29933GS/GS Page #2 Fannie Mae Form 2055 9 96
File No. 29933GS/GS Page #3 PUD Desktop Underwriter Quantitative Analysis Appraisal Report File No. 29933GS/GS Project Information for PUDs (If applicable) Is the developer/builder in control of the Home Owners' Association (HOA)? Yes 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 NOT APPLICABLE Total number of units NOT APPLICABLE Total number of units sold NOT APPLICABLE 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? Yes No If yes, date of conversion: Does the project contain any multi dwelling units? Yes No Data Source: Are the common elements completed? Yes No If No, describe status of completion: 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: CONDOMINIUM 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 NOT APPLICABLE 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 the project, quality of construction, unit mix, etc.: Are the common elements completed? Yes No If No, describe status of completion: 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: 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 judgment. 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 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. PAGE 2 OF 3 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE Fannie Mae Form 2055 9 96
File No. 29933GS/GS Page #4 Desktop Underwriter Quantitative Analysis Appraisal Report APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: File No. 29933GS/GS 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 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: NAPOLEON FORTE, ASA. MANAGING APPRAISER SUPERVISORY APPRAISER (ONLY IF REQUIRED): Signature: Name: NAPOLEON FORTE, ASA.MANAGING APPRAISER Company Name: CERTIFIED GENERAL APPRAISAL SERVICES Company Address: 306 PENDLETON WAY OAKLAND, CA 94621 Date of Report/Signature: December 08, 2009 State Certification #: AG011918 or State License #: CERTIFIED GENERAL APPRAISER State: CA Expiration Date of Certification or License: 10/13/10 Signature: Name: Company Name: Company Address: Date of Report/Signature: State Certification #: or State License #: State: Expiration Date of Certification or License: ADDRESS OF PROPERTY APPRAISED: 1360, 1370 DWIGHT WAY BERKELEY, CA 94702 APPRAISED VALUE OF SUBJECT PROPERTY $ EFFECTIVE DATE OF APPRAISAL/INSPECTION LENDER/CLIENT: Name: Company Name: Company Address: 440000 11/25/2009 BERKELEY HOUSING AUTHORITY MS. TIA M. INGRAM, EXECUTIVE DIRECTOR BERKELEY HOUSING AUTHORITY 1901 FAIRVIEW STREET, BERKELEY, CA 94703 SUPERVISORY APPRAISER: PAGE 3 OF 3 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 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE Fannie Mae Form 2055 9 96
Subject Photos: Front, and Street 1360, 1370 DWIGHT WAY City BERKELEY County ALAMEDA State CA Zip Code 94702 File No. 29933GS/GS Page #5 Subject Front 1360, 1370 DWIGHT WAY Sales Price MKT VALUE Gross Living Area 2,351 Total Rooms 11 Total Bedrooms 7 Total Bathrooms 4 Location AVERAGE View Site 5,603 Quality Age 29 Rear DRIVEBY APPRAISAL Subject Street Form PICPIX.SR "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
on of Building and Property Impr File No. 29933GS/GS Page #6 File No. 29933GS/GS 1360, 1370 DWIGHT WAY City BERKELEY County ALAMEDA State CA Zip Code 94702 DESCRIPTION OF PROPERTY IMPROVEMENTS The subject building was inspected from the exterior only as this was a drive by appraisal per client's instructions. The 2351 sq. ft. gross building is a typical walkup multifamily dwelling built around 1980 90's. Upkeep by regularly scheduled maintenance has been adequate as the building is in average condition. Exterior painting is adequate. Street visibility, access, and setbacks are adequate. The design and curb appeal is typical for the Berkeley market area. The site is located within close proximity to the University of California Berkeley campus which gives it added locational value to potential tenants. Landscaping is adequate with native plants and trees. The construction is wood frame with painted stucco siding. Driveways and parking is judged to be adequate. All utilities are connected to the site and appear to be operating properly. The roof appears to be water tight with no evidence of leaks and appears to have a remaining economic life of at least 50 60 years. No visible exterior defects or deferred maintenance were observed during my exterior inspection. The subject property should compete well for all tenant types within the Berkeley market area and beyond. It should command competitve market rents based on its present condition. The subject has the following unit breakdown per Berkeley Housing Authority: Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Comparable Photos 1 3 1360, 1370 DWIGHT WAY City BERKELEY County ALAMEDA State CA Zip Code 94702 File No. 29933GS/GS Page #7 2218 7TH ST Sales Price G.B.A. Age/Yr. Blt. Comparable 1 520,000 105 Comparable 2 1893 ALCATRAZ AVE Sales Price 346,000 G.B.A. Age/Yr. Blt. 61 Comparable 3 1821 FAIRVIEW ST Sales Price 430,000 G.B.A. Age/Yr. Blt. 109 Form PICPIX.CC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Location Map File No. 29933GS/GS Page #8 1360, 1370 DWIGHT WAY City BERKELEY County ALAMEDA State CA Zip Code 94702 Form MAP.LOC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Plat Map File No. 29933GS/GS Page #9 1360, 1370 DWIGHT WAY City BERKELEY County ALAMEDA State CA Zip Code 94702 Form MAP.PLAT "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Surplus Land Addendum File No. 29933GS/GS Page #10 File No. 29933GS/GS 1360, 1370 DWIGHT WAY City BERKELEY County ALAMEDA State CA Zip Code 94702 SURPLUS LAND ADDENDUM ****************************************************************************************** COMPARABLES#1, #2 & #3 WERE ADJUSTED FOR SURPLUS LAND. SURPLUS LAND IS THE DIFFERENCE OF AT LEAST 25% OF ADDITIONAL SF OF ONE PROPERTY VS. ANOTHER. THE SQUARE FOOTAGE UP TO 25% IS VALUED AT $2 PER SQUARE BEYOND 25%, THE SQUARE FOOTAGE IS VALUED AT $1 PER SQUARE FOOT. THE ACTUAL SURPLUS LAND ADJUSTMENTS ARE SHOWN IN THE REPORT. THE SAMPLE BELOW EXPLAINS THIS CALCULATIONS. SURPLUS LAND CALULATION EXAMPLE **************************************************** SUBJECT SITE SIZE 5,000 SF COMP SITE SIZE 8,500 SF CALCULATE WHAT POINT IS CONSIDERED EXCESS LAND? SUBECT(SMALLEST SIZE) SURPLUS POINT 5,000 SF X1.25 6,250 SF HOW SURPLUS LAND IS VALUED? SURPLUS LAND POINT 6,250 SF ( LESS ) SUBJECT SITE 8,500 SF ACTUAL EXCESS 2,250 SF X $1/SF = $2,500 CALCULATE NORMAL LAND VALUE: SURPLUS LAND POINT 6250 SF (LESS) SUBJECT SITE 5000 SF NORMAL LAND VALUE 1250 SF X $2/SF = $2,500 TOTAL ADJUSTMENTS FOR EXCESS LAND : NORMAL LAND VALUE $2,500 SURPLUS LAND VALUE $2,250 TOTAL ADJUSTMENT $4,750 QUESTIONS AND ANSWERS: IS THIS SITE SIZE TYPICAL FOR THIS MARKET AREA? YES X NO ARE EASEMENTS ON PROPERTY S PLAT MAP? YES_X NO CAN THE EXCESS LAND BE SUBDIVIDED? YES_X NO PROBABILITY OF OWNE SUBDIVIDING? GOOD X NOT GOOD EFFECTS ONE MARKETABILITY OF THIS PROPERTY? SIGNIFICANT X NOT SIGNIFICANT Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
for Market Conditions Adjustmen File No. 29933GS/GS Page #11 File No. 29933GS/GS 1360, 1370 DWIGHT WAY City BERKELEY County ALAMEDA State CA Zip Code 94702 The market data collected by Zillow is judged to be reliable based on price change only. The market data below is for single family homes in Berkeley. However, the multifamily prices tend to lag and match the same trends as the single family market based on discussions with market participants and appraiser's own knowledge. No appraiser adjustments have been made to the Zillow price data. The data confirms what is already known by the buyers and sellers in the Berkeley market and that is prices have been in declined since late 2006. The data also show how Berkeley's residential housing trends compare with the entire US housing market. We have made a 3.5 %/year depreciation adjustment to the comparables to show market decline from the date a comp was sold to the date of inspection by the appraiser. Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Berkeley Rent Control Addendum File No. 29933GS/GS Page #12 File No. 29933GS/GS 1360, 1370 DWIGHT WAY City BERKELEY County ALAMEDA State CA Zip Code 94702 2009 2010 RENT BOARD ALLOWABLE INCREASE RENT STABILIZATION BOARD PUBLIC NOTICE 2010 ANNUAL GENERAL ADJUSTMENT ADOPTED At i t s regular meeting on October 19, 2009, the Berkeley Rent Stabilization Board adopted the Annual General Adjustment (AGA) Order for Year 2010 which will allow eligible landlords to increase the 2009 permanent rent ceilings by 0.1%. The 2010 AGA of 0.1% represents 65% of the increase in the Consumer Price Index (CPI) for All Urban Consumers in the Bay Area during the 2008 fiscal year, which was 0.266 % as posted by the Bureau of Labor Statistics in July 2009. The 65% of CPI formula was approved by the voters in the November 2004 general municipal election. The 2010 AGA may not be charged to tenants whose tenancy began on or after January 1, 2009, and who had their rents set pursuant to the Costa Hawkins Rental Housing Act. The Order also sets forth the conditions for qualifying for this rent increase and the notice that must be given to tenants in order to raise the rent. The full text of the regulation and order may be viewed in the Rent Board office at 2125 Milvia Street or at www.ci.berkeley.ca.us/rent/. If you have any questions, you may contact Jay Kelekian at 981 RENT (981 7368). Jay Kelekian Executive Director October 23, 2009 Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Berkeley Rent Control Addendum File No. 29933GS/GS Page #13 File No. 29933GS/GS 1360, 1370 DWIGHT WAY City BERKELEY County ALAMEDA State CA Zip Code 94702 1. Overview 2. Registration Requirement to register Exemptions Consequences of failing to register Guide to Berkeley's Rent Stabilization Program Rent Control & Eviction Protection (updated for January 2008) Other city of Berkeley requirements for landlords 3. Rent levels Calculating the lawful rent ceiling Rent ceiling increases Rent ceiling decreases Hearings Certification of rent ceilings 4. Subletting and replacing roommates Subletting generally Replacement tenants Chapters 1 3 Chapters 4 6 Table of Contents Partial turnovers in tenancies when a vacancy increase may be imposed 5. Security deposits state and local law State law regarding security deposits Berkeley law regarding security deposits and interest on deposits 6. Evictions Proceed with caution Eviction checklist local requirements Good cause required The eviction process Improper landlord actions Annual General Adjustments (AGA s) General calendar Home Web Policy Text Only Site Map Contact Us Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Scope of Work for this Assignmen File No. 29933GS/GS Page #14 File No. 29933GS/GS 1360, 1370 DWIGHT WAY City BERKELEY County ALAMEDA State CA Zip Code 94702 SCOPE OF WORK Certified General Appraisal Services has prepared a Drive by Summary Narrative Appraisal Report of the subject property in accordance with all applicable governmental requirements, as well as standards and requirements adopted and advanced by the Appraisal Institute and the Society of Real Estate Appraisers. The purpose of this appraisal is to estimate the "as is" market value of the subject. The function is to provide a market value opinion to the intended user, the Berkeley Housing Authority. The property was physically inspected for the street as a drive by inspection.. Land and building areas were verified, Land use controls including zoning and master planning documents were reviewed. Analysis of market conditions relevant to this property included research for comparable sales in Berkeley and adjacent cities and competitive locations. Qualitative and Quantitative analyses of sales, rental, and investment data were made which lead to the conclusions supporting the final estimate of market value. All appraisal reports will contain the following: 1. A review of the prior, current and potential uses of each site, using: a) Discussions with city, county and applicable regulatory staff b) Title searches c) Permits and land uses obtained and held by property owners d) Appropriate agency records to survey the areas surrounding the designated properties. 2. A property description and evaluation, including and confirming: a) Assessor's Parcel Number (APN) b) Legal description c) Plat map d) Ownership history e) Site description f) Description of property improvements, if any g) Neighborhood description h) Descriptions of current or pending changes in zoning i) Highest and best use of the affected property j) Description(s) of comparable site(s) used k) Comparative analysis of subject and comparable site(s) I) Description or illustration of appropriate appraisal approach(es) used* m) Price per unit of comparison analyzed n) Fee simple, leased or other operating data o) Reconciliation and final value estimates ** (Note: While Certified General Appraisal Services may expect and choose to use the three approaches typically employed Cost, Income and Comparable Sales, the Berkeley Housing Authority is primarily interested in appraised values based on the sales of comparable properties, especially in view of the below market rents that are customarily charged for Authority owned rental property.) 3. Each appraisal report must also include the appraiser's certification and statement of limiting conditions. Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Subject Legal Description File No. 29933GS/GS Page #15 File No. 29933GS/GS 1360, 1370 DWIGHT WAY City BERKELEY County ALAMEDA State CA Zip Code 94702 SUBJECT LEGAL DESCRIPTION Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29933GS/GS Page #16 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 institutiona 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 judgment. STATEMENT OF LIMITING CONDITIONS AND CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The inspector's certification that appears in the appraisal report is subject to the following conditions: 1. The inspector 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 valued on the basis of it being under responsible ownership. 2. Any sketch provided in the appraisal report may show approximate dimensions of the improvements and is included only to assist the reader of the report in visualizing the property. The inspector has made no survey of the property. 3. The inspector 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. Any distribution of valuation between land and improvements in the report applies only under the existing program of utilization. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 5. The inspector has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous waste, 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, express or implied, regarding the condition of the property. The inspector 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. 6. The inspector 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 inspector does not assume responsibility for the accuracy of such items that were furnished by other parties. 7. The inspector will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 8. The inspector has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 9. The inspector 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 inspector's identity and professional designations, and references to any professional appraisal organizations or the firm with which the inspector 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 property description section of the report only to data collection or reporting service(s) without having to obtain the inspector's prior written consent. The inspector'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. 10. The inspector is not an employee of the company or individual(s) ordering this report and compensation is not contingent upon the reporting of a predetermined value or direction of value or upon an action or event resulting form the analysis, opinions, conclusions, or the use of this report. This assignment is not based on a required minimum, specific valuation, or the approval of a loan. Page 1 of 2 Certified General Appraisals(510)569 4490 www.appraisalprep.com Form DLC_DEFD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29933GS/GS Page #17 CERTIFICATION: The inspector certifies and agrees that: 1. 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. 2. I have no present or prospective interest in the property that is the subject to 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, 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. 3. 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 analysis is contingent on the appraised value of the property. 4. I performed this analysis in conformity with 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 this appraisal. 5. I have personally inspected the exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. To the best of my knowledge and belief, all statements and information in this report are true and correct, and I have not knowingly withheld any significant information. 6. I personally prepared all conclusions and opinions about the real estate that were set forth in the inspection. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. ADDRESS OF PROPERTY ANALYZED: 1360, 1370 DWIGHT WAY, BERKELEY, CA 94702 INSPECTOR: Signature: Name: NAPOLEON FORTE, ASA.MANAGING APPRAISER Date Signed: December 08, 2009 State Certification #: AG011918 or State License #: CERTIFIED GENERAL APPRAISER State: CA Expiration Date of Certification or License: 10/13/10 Page 2 of 2 Form DLC_DEFD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29950NF/NF 1371 DWIGHT WAY AND 2450 VALLEY STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 TABLE OF CONTENTS Invoice... 1 Opinion of Value: $440,000 or $220,000 /Unit : Driveby Appraisal Form 2055... 2 Description of Building and Property Improvements... 5 Subject Photos: Front, and Street... 6 Comparable Photos 1 3... 7 Location Map... 8 Plat Map... 9 Surplus Land Addendum... 10 Support for Market Conditions Adjustment (Time)... 11 Berkeley Rent Control Addendum... 12 Scope of Work for this Assignment... 14 Subject Legal Description... 15 Statement of Limiting Conditions for Driveby Appraisal... 16 Form TOCPPIX "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Desktop Underwriter Quantitative Analysis Appraisal Report File No. 29950NF/NF THIS SUMMARY APPRAISAL REPORT IS INTENDED FOR USE BY THE LENDER/CLIENT FOR A MORTGAGE FINANCE TRANSACTION ONLY. 1371 DWIGHT WAY AND 2450 VALLEY STREET City BERKELEY State CA Zip Code 94702 Legal Description SEE LEGAL DESCRIPTION AND SCOPE OF WORK ATTACHED County ALAMEDA Assessor's Parcel No. 056 1921 020 Tax Year 09 10 R.E. Taxes $ EXEMPT PUBSpecial Assessments $ Borrower Current Owner BERKELEY HOUSING AUTHORITY Occupant Owner Tenant Vacant Neighborhood or Project Name BERKELEY (2 UNIT APT BUILDING) Project Type PUD Condominium HOA $ /Mo. Sales Price $ MKT VALUE Date of Sale 11/25/2009 Description / $ amount of loan charges/concessions to be paid by seller Property rights appraised Fee Simple Leasehold Map Reference 629 F3 Census Tract 4240.01 Note: Race and the racial composition of the neighborhood are not appraisal factors. Location Urban Suburban Rural Property values Increasing Stable Declining Single family housing Condominium housing PRICE AGE PRICE (if applic.) AGE Built up Over 75% 25 75% Under 25% Demand/supply Shortage In balance Over supply $(000) (yrs) $(000) (yrs) Growth rate Rapid Stable Slow Marketing time Under 3 mos. 3 6 mos. Over 6 mos. 346 Low 29 NA Low NA Neighborhood boundaries SEE LOCATION MAP FOR GENERAL BOUNDARIES. NEIGHBORHOOD HAS 520 High 109 NA High NA HOMOGENEOUS MARKET VALUES. RADUIS OF VALUE = 0 mi to 1.17.SINGLE FAMILY PRICE Predominant Predominant RANGE HEADING = MULTI FAMILY PRICE RANGES AS FORM HAS BEEN MODIFIED. 430 69 Dimensions IRREGULAR, SEE PLAT MAP ATTACH. Site area 5,261 Shape IRREGULAR Specific zoning classification and description R 2 RESTRICTED TWO FAMILY RESIDENTIAL Zoning compliance 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): Present use Other use, attach description. Utilities Public Other Public Other Off site Improvements Type Public Private Electricity Water Street ASPHALT Gas Sanitary sewer Alley YEAR BUILT EST. 1980 Are there any apparent adverse site conditions (easements, encroachments, special assessments, slide areas, etc.)? Yes No If Yes, attach description. Source(s) used for physical characteristics of property: Interior and exterior inspection Exterior inspection from street Previous appraisal files MLS Assessment and tax records Prior inspection Property owner Other (Describe): LAND VALUE= 175967,PRICE/SF=$33 No. of Stories 2 Type (Det./Att.) DET Exterior Walls STUCCO Roof Surface COMPOSITION Manufactured Housing Yes No Does the property generally conform to the neighborhood in terms of style, condition and construction materials? 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. 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. SUBJECT NEIGHBORHOOD SITE IMPROVEMENTS QUANTITATIVE SALES COMPARISON ANALYSIS Certified General Appraisals(510)569 4490 www.appraisalprep.com 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 3 sales ranging in sales price from $ 494,000 to $ 520,000. My research revealed a total of 3 listings ranging in list price from $ 347,730 to $ 525,200. The analysis of the comparable sales below reflects market reaction to significant variations between the sales and the subject property. FEATURE SUBJECT SALE 1 SALE 2 SALE 3 1371 DWIGHT WAY AND 245 2218 7TH ST 1893 ALCATRAZ AVE 1821 FAIRVIEW ST Address BERKELEY BERKELEY BERKELEY BERKELEY Proximity to Subject 0.69 miles 1.17 miles 1.00 miles Sales Price $ MKT VALUE $ 520,000 $ 346,000 $ 430,000 Price/Gross Living Area $ N/A / $ 285.40 / $ 149.27 / $ 166.15 / Data & Verification Sources MLS#40432913 DEED DOC # 244653 MLS# 181333 VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +( )$ Adjust. DESCRIPTION +( )$ Adjust. DESCRIPTION +( )$ Adjust. Sales or Financing Concessions Date of Sale/Time Location Site View Design (Style) Actual Age (Yrs.) Condition AVERAGE 5,261 2 STO AP BLDG 29 AVERAGE BANK LOAN 56 12/3/09 EQUAL 5000 VICTORIAN APTS 105 INFERIOR +500 +1,040 0 0 +7,600 +26,000 BANK LOAN 12 7/30/09 EQUAL 6800 2 STO AP BD/EQ 61 EQUAL 4,500 2,850 0 0 +3,200 BANK LOAN 175 6/09/09 EQUAL 5000 2 STO AP BD/EQ 109 EQUAL 8,000 +1,040 0 0 +8,000 Above Grade Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Room Count 11 7 4 8 4 2 +4,000 10 4 3 +3,500 11 5 3 +2,500 Gross Living Area 2,309 Sq. Ft. 1,822 Sq. Ft. +7,305 2,318 Sq. Ft. 2,588 Sq. Ft. 4,185 Basement & Finished Rooms Below Grade Garage/Carport STORAGE=YES SECURITY=YES 3 YES YES 2 +2,500 YES NO 3 YES NO 2 +2,500 NO. OF UNITS 2 2 0 3 0 3 0 PRICE/UNIT $ N/A 260,000 115,330 143,330 Net Adj. (total) + $ 48,945 + $ 650 + $ 1,855 Adjusted Sales Price of Comparables Net Gross 9.4 9.4 % % $ 568,945 Net Gross 0.2 4.1 % % $ 345,350 Net Gross 0.4 6.1 % % $ 431,855 Date of Prior Sale 4/4/87 UNKN NO PUBLIC DATA UNKN NO PUBLIC DATA UNKN NO PUBLIC DATA Price of Prior Sale $ UNKNOWN $ UNKN NO PUBLIC DATA $ UNKN NO PUBLIC DATA $ UNKN NO PUBLIC DATA Analysis of any current agreement of sale, option, or listing of the subject property and analysis of the prior sales of subject and comparables: OWNERSHIP HISTORY: CITY OF BERKELEY AND NOW BERKELEY HSE AUTH. HAS OWNED PROP. SINCE 2/4/87 (1371 DWIGHT WY & 2450 VALLEY ST). Summary of sales comparison and value conclusion: MOST WEIGHT WAS GIVEN TO COMPS # 1 & #2 DUE TO UNIT COUNT, GLA, PROXIMITY, RECENT SALE, AND MOST SIMILAR FEATURES. COMP # 3 PROVIDES SUPPORT FOR THE VALUE ESTIMATE. COMPS USED WERE THE BEST CLOSED AND LISTED SALES AT TIME OF INSPECTION. ADEQUATE WEIGHT IS GIVEN TO THE ACTIVE LISTINGS AS THEY INDICATE THE HIGHEST "ASKING PRICES" IN A DECLINING MARKET. SALE #2 REQUIRED SURPLUS LAND ADJUSTMENTS DUE TO SITE SIZE DIFFERENCES. SEE SURPLUS LAND ADDENDUM. TYPICAL APT. BUYERS WOULD MOST LIKELY MAKE THEIR FINAL OFFER/BUY DECISION BY APPLYING A REASONABLE PRICE/UNIT COMPARISON WHICH THE DATA SHOWED AVG. P/U OF $ 172887. APPRAISER ASSIGNED A PRICE/ UNIT OF $ 219959 BASED ON CONSIDERING RELEVANT MARKET DATA INCLUDING ADJ. GRID. This appraisal is made "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. EXTERIOR INSPECTION REVEALED NO VISIBLE EXTERIOR DEFECTS. BASED ON AN EXTERIOR INSPECTION FROM THE STREET OR AN INTERIOR AND EXTERIOR INSPECTION, I ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THIS REPORT TO BE $ 440,000, AS OF 11/25/2009. PAGE 1 OF 3 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE File No. 29950NF/NF Page #2 Fannie Mae Form 2055 9 96
File No. 29950NF/NF Page #3 PUD Desktop Underwriter Quantitative Analysis Appraisal Report File No. 29950NF/NF Project Information for PUDs (If applicable) Is the developer/builder in control of the Home Owners' Association (HOA)? Yes 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 NOT APPLICABLE Total number of units NOT APPLICABLE Total number of units sold NOT APPLICABLE 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? Yes No If yes, date of conversion: Does the project contain any multi dwelling units? Yes No Data Source: Are the common elements completed? Yes No If No, describe status of completion: 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: CONDOMINIUM 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 NOT APPLICABLE 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 the project, quality of construction, unit mix, etc.: Are the common elements completed? Yes No If No, describe status of completion: 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: 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 judgment. 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 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. PAGE 2 OF 3 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE Fannie Mae Form 2055 9 96
File No. 29950NF/NF Page #4 Desktop Underwriter Quantitative Analysis Appraisal Report APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: File No. 29950NF/NF 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 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: NAPOLEON FORTE, ASA. MANAGING APPRAISER SUPERVISORY APPRAISER (ONLY IF REQUIRED): Signature: Name: NAPOLEON FORTE, ASA.MANAGING APPRAISER Company Name: CERTIFIED GENERAL APPRAISAL SERVICES Company Address: 306 PENDLETON WAY OAKLAND, CA 94621 Date of Report/Signature: December 08, 2009 State Certification #: AG011918 or State License #: CERTIFIED GENERAL APPRAISER State: CA Expiration Date of Certification or License: 10/13/10 Signature: Name: Company Name: Company Address: Date of Report/Signature: State Certification #: or State License #: State: Expiration Date of Certification or License: ADDRESS OF PROPERTY APPRAISED: 1371 DWIGHT WAY AND 2450 VALLEY STREET BERKELEY, CA 94702 APPRAISED VALUE OF SUBJECT PROPERTY $ EFFECTIVE DATE OF APPRAISAL/INSPECTION LENDER/CLIENT: Name: Company Name: Company Address: 440000 11/25/2009 BERKELEY HOUSING AUTHORITY MS. TIA M. INGRAM, EXECUTIVE DIRECTOR BERKELEY HOUSING AUTHORITY 1901 FAIRVIEW STREET, BERKELEY, CA 94703 SUPERVISORY APPRAISER: PAGE 3 OF 3 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 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE Fannie Mae Form 2055 9 96
on of Building and Property Impr File No. 29950NF/NF Page #5 File No. 29950NF/NF 1371 DWIGHT WAY AND 2450 VALLEY STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 DESCRIPTION OF PROPERTY IMPROVEMENTS The subject building was inspected from the exterior only as this was a drive by appraisal per client's instructions. The 2309 sq. ft. gross building is a typical walkup multifamily dwelling built around 1980 90's. Upkeep by regularly scheduled maintenance has been adequate as the building is in average condition. Exterior painting is adequate. Street visibility, access, and setbacks are adequate. The design and curb appeal is typical for the Berkeley market area. The site is located within close proximity to the University of California Berkeley campus which gives it added locational value to potential tenants. Landscaping is adequate with native plants and trees. The construction is wood frame with painted stucco siding. Driveways and parking is judged to be adequate. All utilities are connected to the site and appear to be operating properly. The roof appears to be water tight with no evidence of leaks and appears to have a remaining economic life of at least 50 60 years. No visible exterior defects or deferred maintenance were observed during my exterior inspection. The subject property should compete well for all tenant types within the Berkeley market area and beyond. It should command competitve market rents based on its present condition. The subject has the following unit breakdown per Berkeley Housing Authority: Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Subject Photos: Front, and Street 1371 DWIGHT WAY AND 2450 VALLEY STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 File No. 29950NF/NF Page #6 Subject Front 1371 DWIGHT WAY AND 2450 VALLEY STREE Sales Price MKT VALUE Gross Living Area 2,309 Total Rooms 11 Total Bedrooms 7 Total Bathrooms 4 Location AVERAGE View Site 5,261 Quality Age 29 Rear DRIVEBY APPRAISAL Subject Street Form PICPIX.SR "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Comparable Photos 1 3 1371 DWIGHT WAY AND 2450 VALLEY STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 File No. 29950NF/NF Page #7 2218 7TH ST Sales Price G.B.A. Age/Yr. Blt. Comparable 1 520,000 105 Comparable 2 1893 ALCATRAZ AVE Sales Price 346,000 G.B.A. Age/Yr. Blt. 61 Comparable 3 1821 FAIRVIEW ST Sales Price 430,000 G.B.A. Age/Yr. Blt. 109 Form PICPIX.CC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Location Map File No. 29950NF/NF Page #8 1371 DWIGHT WAY AND 2450 VALLEY STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 Form MAP.LOC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Plat Map File No. 29950NF/NF Page #9 1371 DWIGHT WAY AND 2450 VALLEY STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 Form MAP.PLAT "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Surplus Land Addendum File No. 29950NF/NF Page #10 File No. 29950NF/NF 1371 DWIGHT WAY AND 2450 VALLEY STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 SURPLUS LAND ADDENDUM ****************************************************************************************** COMPARABLES#1, #2 & #3 WERE ADJUSTED FOR SURPLUS LAND. SURPLUS LAND IS THE DIFFERENCE OF AT LEAST 25% OF ADDITIONAL SF OF ONE PROPERTY VS. ANOTHER. THE SQUARE FOOTAGE UP TO 25% IS VALUED AT $2 PER SQUARE BEYOND 25%, THE SQUARE FOOTAGE IS VALUED AT $1 PER SQUARE FOOT. THE ACTUAL SURPLUS LAND ADJUSTMENTS ARE SHOWN IN THE REPORT. THE SAMPLE BELOW EXPLAINS THIS CALCULATIONS. SURPLUS LAND CALULATION EXAMPLE **************************************************** SUBJECT SITE SIZE 5,000 SF COMP SITE SIZE 8,500 SF CALCULATE WHAT POINT IS CONSIDERED EXCESS LAND? SUBECT(SMALLEST SIZE) SURPLUS POINT 5,000 SF X1.25 6,250 SF HOW SURPLUS LAND IS VALUED? SURPLUS LAND POINT 6,250 SF ( LESS ) SUBJECT SITE 8,500 SF ACTUAL EXCESS 2,250 SF X $1/SF = $2,500 CALCULATE NORMAL LAND VALUE: SURPLUS LAND POINT 6250 SF (LESS) SUBJECT SITE 5000 SF NORMAL LAND VALUE 1250 SF X $2/SF = $2,500 TOTAL ADJUSTMENTS FOR EXCESS LAND : NORMAL LAND VALUE $2,500 SURPLUS LAND VALUE $2,250 TOTAL ADJUSTMENT $4,750 QUESTIONS AND ANSWERS: IS THIS SITE SIZE TYPICAL FOR THIS MARKET AREA? YES X NO ARE EASEMENTS ON PROPERTY S PLAT MAP? YES_X NO CAN THE EXCESS LAND BE SUBDIVIDED? YES_X NO PROBABILITY OF OWNE SUBDIVIDING? GOOD X NOT GOOD EFFECTS ONE MARKETABILITY OF THIS PROPERTY? SIGNIFICANT X NOT SIGNIFICANT Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
for Market Conditions Adjustmen File No. 29950NF/NF Page #11 File No. 29950NF/NF 1371 DWIGHT WAY AND 2450 VALLEY STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 The market data collected by Zillow is judged to be reliable based on price change only. The market data below is for single family homes in Berkeley. However, the multifamily prices tend to lag and match the same trends as the single family market based on discussions with market participants and appraiser's own knowledge. No appraiser adjustments have been made to the Zillow price data. The data confirms what is already known by the buyers and sellers in the Berkeley market and that is prices have been in declined since late 2006. The data also show how Berkeley's residential housing trends compare with the entire US housing market. We have made a 3.5 %/year depreciation adjustment to the comparables to show market decline from the date a comp was sold to the date of inspection by the appraiser. Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Berkeley Rent Control Addendum File No. 29950NF/NF Page #12 File No. 29950NF/NF 1371 DWIGHT WAY AND 2450 VALLEY STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 2009 2010 RENT BOARD ALLOWABLE INCREASE RENT STABILIZATION BOARD PUBLIC NOTICE 2010 ANNUAL GENERAL ADJUSTMENT ADOPTED At i t s regular meeting on October 19, 2009, the Berkeley Rent Stabilization Board adopted the Annual General Adjustment (AGA) Order for Year 2010 which will allow eligible landlords to increase the 2009 permanent rent ceilings by 0.1%. The 2010 AGA of 0.1% represents 65% of the increase in the Consumer Price Index (CPI) for All Urban Consumers in the Bay Area during the 2008 fiscal year, which was 0.266 % as posted by the Bureau of Labor Statistics in July 2009. The 65% of CPI formula was approved by the voters in the November 2004 general municipal election. The 2010 AGA may not be charged to tenants whose tenancy began on or after January 1, 2009, and who had their rents set pursuant to the Costa Hawkins Rental Housing Act. The Order also sets forth the conditions for qualifying for this rent increase and the notice that must be given to tenants in order to raise the rent. The full text of the regulation and order may be viewed in the Rent Board office at 2125 Milvia Street or at www.ci.berkeley.ca.us/rent/. If you have any questions, you may contact Jay Kelekian at 981 RENT (981 7368). Jay Kelekian Executive Director October 23, 2009 Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Berkeley Rent Control Addendum File No. 29950NF/NF Page #13 File No. 29950NF/NF 1371 DWIGHT WAY AND 2450 VALLEY STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 1. Overview 2. Registration Requirement to register Exemptions Consequences of failing to register Guide to Berkeley's Rent Stabilization Program Rent Control & Eviction Protection (updated for January 2008) Other city of Berkeley requirements for landlords 3. Rent levels Calculating the lawful rent ceiling Rent ceiling increases Rent ceiling decreases Hearings Certification of rent ceilings 4. Subletting and replacing roommates Subletting generally Replacement tenants Chapters 1 3 Chapters 4 6 Table of Contents Partial turnovers in tenancies when a vacancy increase may be imposed 5. Security deposits state and local law State law regarding security deposits Berkeley law regarding security deposits and interest on deposits 6. Evictions Proceed with caution Eviction checklist local requirements Good cause required The eviction process Improper landlord actions Annual General Adjustments (AGA s) General calendar Home Web Policy Text Only Site Map Contact Us Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Scope of Work for this Assignmen File No. 29950NF/NF Page #14 File No. 29950NF/NF 1371 DWIGHT WAY AND 2450 VALLEY STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 SCOPE OF WORK Certified General Appraisal Services has prepared a Drive by Summary Narrative Appraisal Report of the subject property in accordance with all applicable governmental requirements, as well as standards and requirements adopted and advanced by the Appraisal Institute and the Society of Real Estate Appraisers. The purpose of this appraisal is to estimate the "as is" market value of the subject. The function is to provide a market value opinion to the intended user, the Berkeley Housing Authority. The property was physically inspected for the street as a drive by inspection.. Land and building areas were verified, Land use controls including zoning and master planning documents were reviewed. Analysis of market conditions relevant to this property included research for comparable sales in Berkeley and adjacent cities and competitive locations. Qualitative and Quantitative analyses of sales, rental, and investment data were made which lead to the conclusions supporting the final estimate of market value. All appraisal reports will contain the following: 1. A review of the prior, current and potential uses of each site, using: a) Discussions with city, county and applicable regulatory staff b) Title searches c) Permits and land uses obtained and held by property owners d) Appropriate agency records to survey the areas surrounding the designated properties. 2. A property description and evaluation, including and confirming: a) Assessor's Parcel Number (APN) b) Legal description c) Plat map d) Ownership history e) Site description f) Description of property improvements, if any g) Neighborhood description h) Descriptions of current or pending changes in zoning i) Highest and best use of the affected property j) Description(s) of comparable site(s) used k) Comparative analysis of subject and comparable site(s) I) Description or illustration of appropriate appraisal approach(es) used* m) Price per unit of comparison analyzed n) Fee simple, leased or other operating data o) Reconciliation and final value estimates ** (Note: While Certified General Appraisal Services may expect and choose to use the three approaches typically employed Cost, Income and Comparable Sales, the Berkeley Housing Authority is primarily interested in appraised values based on the sales of comparable properties, especially in view of the below market rents that are customarily charged for Authority owned rental property.) 3. Each appraisal report must also include the appraiser's certification and statement of limiting conditions. Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Subject Legal Description File No. 29950NF/NF Page #15 File No. 29950NF/NF 1371 DWIGHT WAY AND 2450 VALLEY STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 SUBJECT LEGAL DESCRIPTION Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29950NF/NF Page #16 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 institutiona 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 judgment. STATEMENT OF LIMITING CONDITIONS AND CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The inspector's certification that appears in the appraisal report is subject to the following conditions: 1. The inspector 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 valued on the basis of it being under responsible ownership. 2. Any sketch provided in the appraisal report may show approximate dimensions of the improvements and is included only to assist the reader of the report in visualizing the property. The inspector has made no survey of the property. 3. The inspector 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. Any distribution of valuation between land and improvements in the report applies only under the existing program of utilization. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 5. The inspector has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous waste, 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, express or implied, regarding the condition of the property. The inspector 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. 6. The inspector 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 inspector does not assume responsibility for the accuracy of such items that were furnished by other parties. 7. The inspector will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 8. The inspector has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 9. The inspector 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 inspector's identity and professional designations, and references to any professional appraisal organizations or the firm with which the inspector 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 property description section of the report only to data collection or reporting service(s) without having to obtain the inspector's prior written consent. The inspector'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. 10. The inspector is not an employee of the company or individual(s) ordering this report and compensation is not contingent upon the reporting of a predetermined value or direction of value or upon an action or event resulting form the analysis, opinions, conclusions, or the use of this report. This assignment is not based on a required minimum, specific valuation, or the approval of a loan. Page 1 of 2 Certified General Appraisals(510)569 4490 www.appraisalprep.com Form DLC_DEFD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29950NF/NF Page #17 CERTIFICATION: The inspector certifies and agrees that: 1. 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. 2. I have no present or prospective interest in the property that is the subject to 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, 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. 3. 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 analysis is contingent on the appraised value of the property. 4. I performed this analysis in conformity with 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 this appraisal. 5. I have personally inspected the exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. To the best of my knowledge and belief, all statements and information in this report are true and correct, and I have not knowingly withheld any significant information. 6. I personally prepared all conclusions and opinions about the real estate that were set forth in the inspection. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. ADDRESS OF PROPERTY ANALYZED: 1371 DWIGHT WAY AND 2450 VALLEY STREET, BERKELEY, CA 94702 INSPECTOR: Signature: Name: NAPOLEON FORTE, ASA.MANAGING APPRAISER Date Signed: December 08, 2009 State Certification #: AG011918 or State License #: CERTIFIED GENERAL APPRAISER State: CA Expiration Date of Certification or License: 10/13/10 Page 2 of 2 Form DLC_DEFD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29932KF 1323 CHANNING WAY & 2374 WEST STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 TABLE OF CONTENTS Invoice... 1 Opinion of Value: $460,000 or $230,000/Unit : 2 Units Driveby Appraisal Form 2055... 2 Subject Photos: Front, Rear and Street... 5 Description of Building and Property Improvements... 6 Comparable Photos 1 3... 7 Location Map for Subject and Comps... 8 Subject Plat Map... 9 Surplus Land Addendum... 10 Support for Market Conditions Adjustment (Time)... 11 Berkeley Rent Control Addendum... 12 Scope of Work for this Assignment... 14 Statement of Limiting Conditions for Driveby Appraisal... 15 Form TOCPPIX "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Desktop Underwriter Quantitative Analysis Appraisal Report File No. 29932KF THIS SUMMARY APPRAISAL REPORT IS INTENDED FOR USE BY THE LENDER/CLIENT FOR A MORTGAGE FINANCE TRANSACTION ONLY. 1323 CHANNING WAY & 2374 WEST STREET City BERKELEY State CA Zip Code 94702 Legal Description PARCEL MAPS 4717 LOT A (SEE SCOPE OF WORK ATTACHED) County ALAMEDA Assessor's Parcel No. 056 1922 032 Tax Year EXEMPT R.E. Taxes $ EXEMPT Special Assessments $ Borrower Current Owner BERKELEY HOUSING AUTHORITY Occupant Owner Tenant Vacant Neighborhood or Project Name BERKELEY (2 UNIT APT BUILDING) Project Type PUD Condominium HOA $ /Mo. Sales Price $ MKT VALUE Date of Sale 11/25/2009 Description / $ amount of loan charges/concessions to be paid by seller Property rights appraised Fee Simple Leasehold Map Reference 626 E1 Census Tract 4231.00/3 Note: Race and the racial composition of the neighborhood are not appraisal factors. Location Urban Suburban Rural Property values Increasing Stable Declining Single family housing Condominium housing PRICE AGE PRICE (if applic.) AGE Built up Over 75% 25 75% Under 25% Demand/supply Shortage In balance Over supply $(000) (yrs) $(000) (yrs) Growth rate Rapid Stable Slow Marketing time Under 3 mos. 3 6 mos. Over 6 mos. 349 Low 20 NA Low NA Neighborhood boundaries SEE LOCATION MAP FOR GENERAL BOUNDARIES. NEIGHBORHOOD HAS 460 High 97 NA High NA HOMOGENEOUS MARKET VALUES. RADUIS OF VALUE = 0 mi to 1.02.SINGLE FAMILY PRICE Predominant Predominant RANGE HEADING = MULTI FAMILY PRICE RANGES AS FORM HAS BEEN MODIFIED. 400 58.5 Dimensions 49.48FT X 100FT Site area 4,948 Shape RECTANGULAR Specific zoning classification and description R 2 RESTRICTED TWO FAMILY RESIDENTIAL Zoning compliance 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): Present use Other use, attach description. Utilities Public Other Public Other Off site Improvements Type Public Private Electricity Water Street ASPHALT Gas Sanitary sewer Alley YEAR BUILT EST. 1989 Are there any apparent adverse site conditions (easements, encroachments, special assessments, slide areas, etc.)? Yes No If Yes, attach description. Source(s) used for physical characteristics of property: Interior and exterior inspection Exterior inspection from street Previous appraisal files MLS Assessment and tax records Prior inspection Property owner Other (Describe): LAND VALUE= 183920,PRICE/SF=$37 No. of Stories 2 Type (Det./Att.) DET Exterior Walls STUCCO Roof Surface COMPOSITION Manufactured Housing Yes No Does the property generally conform to the neighborhood in terms of style, condition and construction materials? 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. 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. SUBJECT NEIGHBORHOOD SITE IMPROVEMENTS QUANTITATIVE SALES COMPARISON ANALYSIS Certified General Appraisals(510)569 4490 www.appraisalprep.com 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 3 sales ranging in sales price from $ 437,000 to $ 460,000. My research revealed a total of 3 listings ranging in list price from $ 350,745 to $ 464,600. The analysis of the comparable sales below reflects market reaction to significant variations between the sales and the subject property. FEATURE SUBJECT SALE 1 SALE 2 SALE 3 File No. 29932KF Page #2 1323 CHANNING WAY & 2374 3144 SACRAMENTO ST 1214 BURNETT ST 1415 66TH ST Address BERKELEY BERKELEY BERKELEY BERKELEY Proximity to Subject 1.02 miles 0.74 miles 0.97 miles Sales Price $ MKT VALUE $ 396,800 $ 460,000 $ 349,000 Price/Gross Living Area $ N/A / $ 215.18 / $ 206.46 / $ 164.24 / Data & Verification Sources MLS#40418164 MLS #40405506 MLS#40421028(PENDING) VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +( )$ Adjust. DESCRIPTION +( )$ Adjust. DESCRIPTION +( )$ Adjust. Sales or Financing Concessions Date of Sale/Time Location Site View Design (Style) Actual Age (Yrs.) Condition AVERAGE 4,948 2 STO AP BLDG 20 AVERAGE BANK LOAN 82 9/22/09 EQUAL 5131 1 STO AP BD/EQ 61 EQUAL 2,800 730 0 0 +4,100 BANK LOAN 125 8/21/09 EQUAL 4550 1 STO AP BD/EQ 97 EQUAL 4,800 +1,590 0 0 +7,700 SALE/LIST=97% 90 10/6/09 EQUAL 5000 2 STO AP BD/EQ 94 INFERIOR 10,000 1,900 0 0 +7,400 +27,920 Above Grade Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Room Count 8 7 4 8 5 3 +2,500 8 5 2 +3,000 8 5 3 +2,500 Gross Living Area 2,374 Sq. Ft. 1,844 Sq. Ft. +7,950 2,228 Sq. Ft. +2,190 2,125 Sq. Ft. +3,735 Basement & Finished Rooms Below Grade Garage/Carport STORAGE=YES SECURITY=YES 0 YES YES 2 5,000 YES YES 1 2,500 YES YES 0 NO. OF UNITS 2 2 0 2 0 2 0 PRICE/UNIT $ N/A 198,400 230,000 174,500 Net Adj. (total) + $ 6,020 + $ 7,180 + $ 29,655 Adjusted Sales Price Net 1.5 % Net 1.6 % Net 8.5 % of Comparables Gross 5.8 % $ 402,820 Gross 4.7 % $ 467,180 Gross 15.3 % $ 378,655 Date of Prior Sale 3/1/1986 3/24/95 3/27/06 10/21/97 Price of Prior Sale $ UNKNOWN $ 175,000 $ 620,000 $ UNKN NO PUBLIC DATA Analysis of any current agreement of sale, option, or listing of the subject property and analysis of the prior sales of subject and comparables: OWNERSHIP HISTORY: CITY OF BERKELEY AND NOW BERKELEY HSE AUTH. HAS OWNED THIS PROP. SINCE FEB 20,1987 PER ALAMEDA CO. RECORDS. Summary of sales comparison and value conclusion: MOST WEIGHT WAS GIVEN TO COMPS # 1 & #2 DUE TO UNIT COUNT, GLA, PROXIMITY, RECENT SALE, AND MOST SIMILAR FEATURES. COMP # 3 PROVIDES SUPPORT FOR THE VALUE ESTIMATE. COMPS USED WERE THE BEST CLOSED AND LISTED SALES AT TIME OF INSPECTION. ADEQUATE WEIGHT IS GIVEN TO THE ACTIVE LISTINGS AS THEY INDICATE THE HIGHEST "ASKING PRICES" IN A DECLINING MARKET. TYPICAL APT. BUYERS WOULD MOST LIKELY MAKE THEIR FINAL OFFER/BUY DECISION BY APPLYING A REASONABLE PRICE/UNIT COMPARISON WHICH THE DATA SHOWED AVG. P/U OF $ 200967.APPRAISER ASSIGNED A PRICE/ UNIT OF $ 229901,BASED ON CONSIDERING RELEVANT MARKET DATA. This appraisal is made "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. EXTERIOR INSPECTION REVEALED NO VISIBLE EXTERIOR DEFECTS. BASED ON AN EXTERIOR INSPECTION FROM THE STREET OR AN INTERIOR AND EXTERIOR INSPECTION, I ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THIS REPORT TO BE $ 460,000, AS OF 11/25/2009. PAGE 1 OF 3 Fannie Mae Form 2055 9 96 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29932KF Page #3 PUD Desktop Underwriter Quantitative Analysis Appraisal Report File No. 29932KF Project Information for PUDs (If applicable) Is the developer/builder in control of the Home Owners' Association (HOA)? Yes 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 NOT APPLICABLE Total number of units NOT APPLICABLE Total number of units sold NOT APPLICABLE 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? Yes No If yes, date of conversion: Does the project contain any multi dwelling units? Yes No Data Source: Are the common elements completed? Yes No If No, describe status of completion: 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: CONDOMINIUM 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 NOT APPLICABLE 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 the project, quality of construction, unit mix, etc.: Are the common elements completed? Yes No If No, describe status of completion: 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: 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 judgment. 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 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. PAGE 2 OF 3 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE Fannie Mae Form 2055 9 96
File No. 29932KF Page #4 Desktop Underwriter Quantitative Analysis Appraisal Report APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: File No. 29932KF 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 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: NAPOLEON FORTE, ASA. MANAGING APPRAISER SUPERVISORY APPRAISER (ONLY IF REQUIRED): Signature: Name: NAPOLEON FORTE, ASA.MANAGING APPRAISER Company Name: CERTIFIED GENERAL APPRAISAL SERVICES Company Address: 306 PENDLETON WAY OAKLAND, CA 94621 Date of Report/Signature: December 04, 2009 State Certification #: AG011918 or State License #: CERTIFIED GENERAL APPRAISER State: CA Expiration Date of Certification or License: 10/13/10 Signature: Name: Company Name: Company Address: Date of Report/Signature: State Certification #: or State License #: State: Expiration Date of Certification or License: ADDRESS OF PROPERTY APPRAISED: 1323 CHANNING WAY & 2374 WEST STREET BERKELEY, CA 94702 APPRAISED VALUE OF SUBJECT PROPERTY $ EFFECTIVE DATE OF APPRAISAL/INSPECTION LENDER/CLIENT: Name: Company Name: Company Address: 460000 11/25/2009 MS. TIA M. INGRAM, EXECUTIVE DIRECTOR BERKELEY HOUSING AUTHORITY 1901 FAIRVIEW STREET, BERKELEY, CA 94703 SUPERVISORY APPRAISER: PAGE 3 OF 3 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 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE Fannie Mae Form 2055 9 96
Subject Photos: Front, Rear and Street 1323 CHANNING WAY & 2374 WEST STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 File No. 29932KF Page #5 Subject Front 1323 CHANNING WAY & 2374 WEST STREET Sales Price MKT VALUE G.B.A. Age/Yr.Blt. 20 Subject Side View 2374 WEST STREET NEXT DOOR (DRIVEBY APPRAISAL) Subject Street Form PICPIX.SC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
on of Building and Property Impr File No. 29932KF Page #6 File No. 29932KF 1323 CHANNING WAY & 2374 WEST STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 DESCRIPTION OF PROPERTY IMPROVEMENTS The subject building was inspected from the exterior only as this was a drive by appraisal per client's instructions. The 2375 sq. ft. gross building is a typical walkup multifamily dwelling built around 1980 90's. Upkeep by regularly scheduled maintenance has been adequate as the building is in average condition. Exterior painting is adequate. Street visibility, access, and setbacks are adequate. The design and curb appeal is typical for the Berkeley market area. The site is located within close proximity to the University of California Berkeley campus which gives it added locational value to potential tenants. Landscaping is adequate with native plants and trees. The construction is wood frame with painted stucco siding. Driveways and parking is judged to be adequate. All utilities are connected to the site and appear to be operating properly. The roof appears to be water tight with no evidence of leaks and appears to have a remaining economic life of at least 50 60 years. No visible exterior defects or deferred maintenance were observed during my exterior inspection. The subject property should compete well for all tenant types within the Berkeley market area and beyond. It should command competitve market rents based on its present condition. The subject has the following unit breakdown per Berkeley Housing Authority: Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Comparable Photos 1 3 1323 CHANNING WAY & 2374 WEST STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 File No. 29932KF Page #7 Comparable 1 3144 SACRAMENTO ST Sales Price 396,800 G.B.A. Age/Yr. Blt. 61 Comparable 2 1214 BURNETT ST Sales Price 460,000 G.B.A. Age/Yr. Blt. 97 1415 66TH ST Sales Price G.B.A. Age/Yr. Blt. Comparable 3 349,000 94 Form PICPIX.CC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Location Map File No. 29932KF Page #8 1323 CHANNING WAY & 2374 WEST STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 Form MAP.LOC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Plat Map File No. 29932KF Page #9 1323 CHANNING WAY & 2374 WEST STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 Form MAP.PLAT "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Surplus Land Addendum File No. 29932KF Page #10 File No. 29932KF 1323 CHANNING WAY & 2374 WEST STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 SURPLUS LAND ADDENDUM ****************************************************************************************** COMPARABLES#1, #2 & #3 WERE ADJUSTED FOR SURPLUS LAND. SURPLUS LAND IS THE DIFFERENCE OF AT LEAST 25% OF ADDITIONAL SF OF ONE PROPERTY VS. ANOTHER. THE SQUARE FOOTAGE UP TO 25% IS VALUED AT $2 PER SQUARE BEYOND 25%, THE SQUARE FOOTAGE IS VALUED AT $1 PER SQUARE FOOT. THE ACTUAL SURPLUS LAND ADJUSTMENTS ARE SHOWN IN THE REPORT. THE SAMPLE BELOW EXPLAINS THIS CALCULATIONS. SURPLUS LAND CALULATION EXAMPLE **************************************************** SUBJECT SITE SIZE 5,000 SF COMP SITE SIZE 8,500 SF CALCULATE WHAT POINT IS CONSIDERED EXCESS LAND? SUBECT(SMALLEST SIZE) SURPLUS POINT 5,000 SF X1.25 6,250 SF HOW SURPLUS LAND IS VALUED? SURPLUS LAND POINT 6,250 SF ( LESS ) SUBJECT SITE 8,500 SF ACTUAL EXCESS 2,250 SF X $1/SF = $2,500 CALCULATE NORMAL LAND VALUE: SURPLUS LAND POINT 6250 SF (LESS) SUBJECT SITE 5000 SF NORMAL LAND VALUE 1250 SF X $2/SF = $2,500 TOTAL ADJUSTMENTS FOR EXCESS LAND : NORMAL LAND VALUE $2,500 SURPLUS LAND VALUE $2,250 TOTAL ADJUSTMENT $4,750 QUESTIONS AND ANSWERS: IS THIS SITE SIZE TYPICAL FOR THIS MARKET AREA? YES X NO ARE EASEMENTS ON PROPERTY S PLAT MAP? YES_X NO CAN THE EXCESS LAND BE SUBDIVIDED? YES_X NO PROBABILITY OF OWNE SUBDIVIDING? GOOD X NOT GOOD EFFECTS ONE MARKETABILITY OF THIS PROPERTY? SIGNIFICANT X NOT SIGNIFICANT Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
for Market Conditions Adjustmen File No. 29932KF Page #11 File No. 29932KF 1323 CHANNING WAY & 2374 WEST STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 The market data collected by Zillow is judged to be reliable based on price change only. The market data below is for single family homes in Berkeley. However, the multifamily prices tend to lag and match the same trends as the single family market based on discussions with market participants and appraiser's own knowledge. No appraiser adjustments have been made to the Zillow price data. The data confirms what is already known by the buyers and sellers in the Berkeley market and that is prices have been in declined since late 2006. The data also show how Berkeley's residential housing trends compare with the entire US housing market. We have made a 3.5 %/year depreciation adjustment to the comparables to show market decline from the date a comp was sold to the date of inspection by the appraiser. Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Berkeley Rent Control Addendum File No. 29932KF Page #12 File No. 29932KF 1323 CHANNING WAY & 2374 WEST STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 2009 2010 RENT BOARD ALLOWABLE INCREASE RENT STABILIZATION BOARD PUBLIC NOTICE 2010 ANNUAL GENERAL ADJUSTMENT ADOPTED At i t s regular meeting on October 19, 2009, the Berkeley Rent Stabilization Board adopted the Annual General Adjustment (AGA) Order for Year 2010 which will allow eligible landlords to increase the 2009 permanent rent ceilings by 0.1%. The 2010 AGA of 0.1% represents 65% of the increase in the Consumer Price Index (CPI) for All Urban Consumers in the Bay Area during the 2008 fiscal year, which was 0.266 % as posted by the Bureau of Labor Statistics in July 2009. The 65% of CPI formula was approved by the voters in the November 2004 general municipal election. The 2010 AGA may not be charged to tenants whose tenancy began on or after January 1, 2009, and who had their rents set pursuant to the Costa Hawkins Rental Housing Act. The Order also sets forth the conditions for qualifying for this rent increase and the notice that must be given to tenants in order to raise the rent. The full text of the regulation and order may be viewed in the Rent Board office at 2125 Milvia Street or at www.ci.berkeley.ca.us/rent/. If you have any questions, you may contact Jay Kelekian at 981 RENT (981 7368). Jay Kelekian Executive Director October 23, 2009 Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Berkeley Rent Control Addendum File No. 29932KF Page #13 File No. 29932KF 1323 CHANNING WAY & 2374 WEST STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 1. Overview 2. Registration Requirement to register Exemptions Consequences of failing to register Guide to Berkeley's Rent Stabilization Program Rent Control & Eviction Protection (updated for January 2008) Other city of Berkeley requirements for landlords 3. Rent levels Calculating the lawful rent ceiling Rent ceiling increases Rent ceiling decreases Hearings Certification of rent ceilings 4. Subletting and replacing roommates Subletting generally Replacement tenants Chapters 1 3 Chapters 4 6 Table of Contents Partial turnovers in tenancies when a vacancy increase may be imposed 5. Security deposits state and local law State law regarding security deposits Berkeley law regarding security deposits and interest on deposits 6. Evictions Proceed with caution Eviction checklist local requirements Good cause required The eviction process Improper landlord actions Annual General Adjustments (AGA s) General calendar Home Web Policy Text Only Site Map Contact Us Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Scope of Work for this Assignmen File No. 29932KF Page #14 File No. 29932KF 1323 CHANNING WAY & 2374 WEST STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 SCOPE OF WORK Certified General Appraisal Services has prepared a Drive by Summary Narrative Appraisal Report of the subject property in accordance with all applicable governmental requirements, as well as standards and requirements adopted and advanced by the Appraisal Institute and the Society of Real Estate Appraisers. The purpose of this appraisal is to estimate the "as is" market value of the subject. The function is to provide a market value opinion to the intended user, the Berkeley Housing Authority. The property was physically inspected for the street as a drive by inspection.. Land and building areas were verified, Land use controls including zoning and master planning documents were reviewed. Analysis of market conditions relevant to this property included research for comparable sales in Berkeley and adjacent cities and competitive locations. Qualitative and Quantitative analyses of sales, rental, and investment data were made which lead to the conclusions supporting the final estimate of market value. All appraisal reports will contain the following: 1. A review of the prior, current and potential uses of each site, using: a) Discussions with city, county and applicable regulatory staff b) Title searches c) Permits and land uses obtained and held by property owners d) Appropriate agency records to survey the areas surrounding the designated properties. 2. A property description and evaluation, including and confirming: a) Assessor's Parcel Number (APN) b) Legal description c) Plat map d) Ownership history e) Site description f) Description of property improvements, if any g) Neighborhood description h) Descriptions of current or pending changes in zoning i) Highest and best use of the affected property j) Description(s) of comparable site(s) used k) Comparative analysis of subject and comparable site(s) I) Description or illustration of appropriate appraisal approach(es) used* m) Price per unit of comparison analyzed n) Fee simple, leased or other operating data o) Reconciliation and final value estimates ** (Note: While Certified General Appraisal Services may expect and choose to use the three approaches typically employed Cost, Income and Comparable Sales, the Berkeley Housing Authority is primarily interested in appraised values based on the sales of comparable properties, especially in view of the below market rents that are customarily charged for Authority owned rental property.) 3. Each appraisal report must also include the appraiser's certification and statement of limiting conditions. Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29932KF Page #15 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 institutiona 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 judgment. STATEMENT OF LIMITING CONDITIONS AND CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The inspector's certification that appears in the appraisal report is subject to the following conditions: 1. The inspector 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 valued on the basis of it being under responsible ownership. 2. Any sketch provided in the appraisal report may show approximate dimensions of the improvements and is included only to assist the reader of the report in visualizing the property. The inspector has made no survey of the property. 3. The inspector 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. Any distribution of valuation between land and improvements in the report applies only under the existing program of utilization. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 5. The inspector has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous waste, 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, express or implied, regarding the condition of the property. The inspector 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. 6. The inspector 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 inspector does not assume responsibility for the accuracy of such items that were furnished by other parties. 7. The inspector will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 8. The inspector has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 9. The inspector 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 inspector's identity and professional designations, and references to any professional appraisal organizations or the firm with which the inspector 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 property description section of the report only to data collection or reporting service(s) without having to obtain the inspector's prior written consent. The inspector'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. 10. The inspector is not an employee of the company or individual(s) ordering this report and compensation is not contingent upon the reporting of a predetermined value or direction of value or upon an action or event resulting form the analysis, opinions, conclusions, or the use of this report. This assignment is not based on a required minimum, specific valuation, or the approval of a loan. Page 1 of 2 Certified General Appraisals(510)569 4490 www.appraisalprep.com Form DLC_DEFD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29932KF Page #16 CERTIFICATION: The inspector certifies and agrees that: 1. 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. 2. I have no present or prospective interest in the property that is the subject to 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, 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. 3. 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 analysis is contingent on the appraised value of the property. 4. I performed this analysis in conformity with 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 this appraisal. 5. I have personally inspected the exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. To the best of my knowledge and belief, all statements and information in this report are true and correct, and I have not knowingly withheld any significant information. 6. I personally prepared all conclusions and opinions about the real estate that were set forth in the inspection. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. ADDRESS OF PROPERTY ANALYZED: 1323 CHANNING WAY & 2374 WEST STREET, BERKELEY, CA 94702 INSPECTOR: Signature: Name: NAPOLEON FORTE, ASA.MANAGING APPRAISER Date Signed: December 04, 2009 State Certification #: AG011918 or State License #: CERTIFIED GENERAL APPRAISER State: CA Expiration Date of Certification or License: 10/13/10 Page 2 of 2 Form DLC_DEFD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29950KF/NF C 1500 1504 7TH STREET AND 870 880 JONES STREET City BERKELEY County ALAMEDA State CA Zip Code 94704 TABLE OF CONTENTS Invoice... 1 Opinion of Value: $800,000 OR $160,000/Unit : 5 Units Driveby Appraisal Form 2055... 2 Subject Photos: Units at 1500 1504 7th Street... 5 Subject Photos: Units at 870 880 Jones Street... 6 Description of Building and Property Improvements... 7 Comparable Photos 1 3... 8 Location Map for Subject and Comps... 9 Subject Plat Map... 10 Surplus Land Addendum... 11 Support for Market Conditions Adjustment (Time)... 12 Berkeley Rent Control Addendum... 13 Scope of Work for this Assignment... 15 Subject Legal Description... 16 Statement of Limiting Conditions for Driveby Appraisal... 17 Form TOCPPIX "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Desktop Underwriter Quantitative Analysis Appraisal Report File No. 29950KF/NF C THIS SUMMARY APPRAISAL REPORT IS INTENDED FOR USE BY THE LENDER/CLIENT FOR A MORTGAGE FINANCE TRANSACTION ONLY. 1500 1504 7TH STREET AND 870 880 JONES STREETCity BERKELEY State CA Zip Code 94704 Legal Description SEE LEGAL DESCRIPTION AND SCOPE OF WORK ATTACHED) County ALAMEDA Assessor's Parcel No. 059 2314 4 Tax Year EXEMPT R.E. Taxes $ EXEMPT PUBSpecial Assessments $ Borrower Current Owner HOUSING AUTHORITY OF THE CIT Occupant Owner Tenant Vacant Neighborhood or Project Name BERKELEY (5 UNIT APT BUILDING) Project Type PUD Condominium HOA $ /Mo. Sales Price $ MKT VALUE Date of Sale 11/25/2009 Description / $ amount of loan charges/concessions to be paid by seller Property rights appraised Fee Simple Leasehold Map Reference 629 D1 Census Tract 4221.00/1 Note: Race and the racial composition of the neighborhood are not appraisal factors. Location Urban Suburban Rural Property values Increasing Stable Declining Single family housing Condominium housing PRICE AGE PRICE (if applic.) AGE Built up Over 75% 25 75% Under 25% Demand/supply Shortage In balance Over supply $(000) (yrs) $(000) (yrs) Growth rate Rapid Stable Slow Marketing time Under 3 mos. 3 6 mos. Over 6 mos. 789 Low 29 NA Low NA Neighborhood boundaries SEE LOCATION MAP FOR GENERAL BOUNDARIES. NEIGHBORHOOD HAS 1,100 High 49 NA High NA HOMOGENEOUS MARKET VALUES. RADUIS OF VALUE = 0 mi to 2.9.SINGLE FAMILY PRICE Predominant Predominant RANGE HEADING = MULTI FAMILY PRICE RANGES AS FORM HAS BEEN MODIFIED. 890 39 Dimensions 120 FT X 100FT Site area 12,000 Shape RECTANGULAR Specific zoning classification and description R 1A LIMITED TWO FAMILY RESIDENTIAL Zoning compliance 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): Present use Other use, attach description. Utilities Public Other Public Other Off site Improvements Type Public Private Electricity Water Street ASPHALT Gas Sanitary sewer Alley YEAR BUILT EST. 1980 Are there any apparent adverse site conditions (easements, encroachments, special assessments, slide areas, etc.)? Yes No If Yes, attach description. Source(s) used for physical characteristics of property: Interior and exterior inspection Exterior inspection from street Previous appraisal files MLS Assessment and tax records Prior inspection Property owner Other (Describe): LAND VALUE= 319918,PRICE/SF=$27 No. of Stories 2 Type (Det./Att.) DET Exterior Walls STUCCO Roof Surface COMPOSITION Manufactured Housing Yes No Does the property generally conform to the neighborhood in terms of style, condition and construction materials? 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. 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. SUBJECT NEIGHBORHOOD SITE IMPROVEMENTS QUANTITATIVE SALES COMPARISON ANALYSIS Certified General Appraisals(510)569 4490 www.appraisalprep.com 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 3 sales ranging in sales price from $ 1,045,000 to $ 1,100,000. My research revealed a total of 3 listings ranging in list price from $ 792,945 to $ 1,111,000. The analysis of the comparable sales below reflects market reaction to significant variations between the sales and the subject property. FEATURE SUBJECT SALE 1 SALE 2 SALE 3 1500 1504 7TH STREET AND 1817 7TH ST 2716 WEBSTER STREET 1600 TYLER STREET Address BERKELEY BERKELEY BERKELEY BERKELEY Proximity to Subject 0.38 miles 2.90 miles 2.00 miles Sales Price $ MKT VALUE $ 795,000 $ 1,100,000 $ 789,000 Price/Gross Living Area $ N/A / $ 161.03 / $ 217.69 / $ 137.22 / Data & Verification Sources MLS#40396699 DEED DOC # 2008 231444 MLS#40398020 VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +( )$ Adjust. DESCRIPTION +( )$ Adjust. DESCRIPTION +( )$ Adjust. Sales or Financing Concessions Date of Sale/Time Location Site View Design (Style) Actual Age (Yrs.) Condition AVERAGE 12,000 2 STO AP BLDG 29 AVERAGE BANK LOAN 264 11/17/09 EQUAL 6750 2 STO AP BD/EQ 43 EQUAL 700 +6,940 0 0 +1,400 BANK LOAN 40 7/17/08 SUPERIOR 6800 2 STO AP BD/EQ 49 EQUAL 59,800 66,000 +6,900 0 0 +2,000 BANK LOAN 252 11/13/09 EQUAL 6750 2 STO AP BD/EQ 49 EQUAL 1,000 +6,940 0 0 +2,000 Above Grade Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Room Count 27 17 10 24 12 6 +7,000 15 10 5 +9,500 32 11 8 +7,000 Gross Living Area 5,768 Sq. Ft. 4,937 Sq. Ft. +12,465 5,053 Sq. Ft. +10,725 5,750 Sq. Ft. Basement & Finished Rooms Below Grade Garage/Carport STORAGE=YES SECURITY=YES 0 YES YES 6 15,000 YES YES 5 12,500 YES YES 5 12,500 NO. OF UNITS 5 6 0 5 0 8 0 PRICE/UNIT $ N/A 132,500 220,000 98,630 Net Adj. (total) + $ 12,105 + $ 109,175 + $ 2,440 Adjusted Sales Price Net 1.5 % Net 9.9 % Net 0.3 % of Comparables Gross 5.5 % $ 807,105 Gross 15.2 % $ 990,825 Gross 3.7 % $ 791,440 Date of Prior Sale 11/21/86 11/15/09 4/25/88 1/8/96 Price of Prior Sale $ UNKNOWN $ 249,000 $ UNKN NO PUBLIC DATA $ 115,000 Analysis of any current agreement of sale, option, or listing of the subject property and analysis of the prior sales of subject and comparables: OWNERSHIP HISTORY: CITY OF BERKELEY NOW BHA HAS OWNED THIS PROPERTY SINCE NOVEMBER 21, 1986 PER ALAMEDA CO. RECORDS. Summary of sales comparison and value conclusion: MOST WEIGHT WAS GIVEN TO COMPS # 1 & #2 DUE TO UNIT COUNT, GLA, PROXIMITY, RECENT SALE, AND MOST SIMILAR FEATURES. COMP # 3 PROVIDES SUPPORT FOR THE VALUE ESTIMATE. COMPS USED WERE THE BEST CLOSED AND LISTED SALES AT TIME OF INSPECTION. ADEQUATE WEIGHT IS GIVEN TO THE ACTIVE LISTINGS AS THEY INDICATE THE HIGHEST "ASKING PRICES" IN A DECLINING MARKET. SALE #1SALE #2SALE #3 REQUIRED SURPLUS LAND ADJUSTMENTS DUE TO SITE SIZE DIFFERENCES. SEE SURPLUS LAND ADDENDUM. TYPICAL APT. BUYERS WOULD MOST LIKELY MAKE THEIR FINAL OFFER/BUY DECISION BY APPLYING A REASONABLE PRICE/UNIT COMPARISON WHICH THE DATA SHOWED AVG. P/U OF $ 150377.APPRAISER ASSIGNED A PRICE/ UNIT OF $ 159959,BASED ON CONSIDERING RELEVANT MARKET DATA. This appraisal is made "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. EXTERIOR INSPECTION REVEALED NO VISIBLE EXTERIOR DEFECTS. BASED ON AN EXTERIOR INSPECTION FROM THE STREET OR AN INTERIOR AND EXTERIOR INSPECTION, I ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THIS REPORT TO BE $ 800,000, AS OF 11/25/2009. PAGE 1 OF 3 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE File No. 29950KF/NF C Page #2 Fannie Mae Form 2055 9 96
File No. 29950KF/NF C Page #3 PUD Desktop Underwriter Quantitative Analysis Appraisal Report File No. 29950KF/NF C Project Information for PUDs (If applicable) Is the developer/builder in control of the Home Owners' Association (HOA)? Yes 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 NOT APPLICABLE Total number of units NOT APPLICABLE Total number of units sold NOT APPLICABLE 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? Yes No If yes, date of conversion: Does the project contain any multi dwelling units? Yes No Data Source: Are the common elements completed? Yes No If No, describe status of completion: 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: CONDOMINIUM 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 NOT APPLICABLE 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 the project, quality of construction, unit mix, etc.: Are the common elements completed? Yes No If No, describe status of completion: 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: 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 judgment. 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 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. PAGE 2 OF 3 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE Fannie Mae Form 2055 9 96
File No. 29950KF/NF C Page #4 Desktop Underwriter Quantitative Analysis Appraisal Report APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: File No. 29950KF/NF C 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 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: NAPOLEON FORTE, ASA. MANAGING APPRAISER SUPERVISORY APPRAISER (ONLY IF REQUIRED): Signature: Name: NAPOLEON FORTE, ASA.MANAGING APPRAISER Company Name: CERTIFIED GENERAL APPRAISAL SERVICES Company Address: 306 PENDLETON WAY OAKLAND, CA 94621 Date of Report/Signature: December 04, 2009 State Certification #: AG011918 or State License #: CERTIFIED GENERAL APPRAISER State: CA Expiration Date of Certification or License: 10/13/10 Signature: Name: Company Name: Company Address: Date of Report/Signature: State Certification #: or State License #: State: Expiration Date of Certification or License: ADDRESS OF PROPERTY APPRAISED: 1500 1504 7TH STREET AND 870 880 JONES STREET BERKELEY, CA 94704 APPRAISED VALUE OF SUBJECT PROPERTY $ EFFECTIVE DATE OF APPRAISAL/INSPECTION LENDER/CLIENT: Name: Company Name: Company Address: 800000 11/25/2009 MS. TIA M. INGRAM, EXECUTIVE DIRECTOR BERKELEY HOUSING AUTHORITY 1901 FAIRVIEW STREET, BERKELEY, CA 94703 SUPERVISORY APPRAISER: PAGE 3 OF 3 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 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE Fannie Mae Form 2055 9 96
Subject Photos: Units at 1500 1504 7th Street File No. 29950KF/NF C Page #5 1500 1504 7TH STREET AND 870 880 JONES STREET City BERKELEY County ALAMEDA State CA Zip Code 94704 Subject Front 1500 1504 7TH STREET AND 870 880 JONES Sales Price MKT VALUE Gross Living Area 5,768 Total Rooms 27 Total Bedrooms 17 Total Bathrooms 10 Location AVERAGE View Site 12,000 Quality Age 29 UNITS AT 1500 1504 7TH Subject Rear (NO REAR DRIVEBY) Subject Street UNITS AT 1500 1504 7TH Form PICPIX.SR "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Subject Photos: Units at 870 880 Jones Street File No. 29950KF/NF C Page #6 1500 1504 7TH STREET AND 870 880 JONES STREET City BERKELEY County ALAMEDA State CA Zip Code 94704 Subject Front 1500 1504 7TH STREET AND 870 880 JONES Sales Price MKT VALUE Gross Living Area 5,768 Total Rooms 27 Total Bedrooms 17 Total Bathrooms 10 Location AVERAGE View Site 12,000 Quality Age 29 UNITS AT 870 880 JONES Subject Rear (NO REAR DRIVEBY) Subject Street UNITS AT 870 880 JONES Form PICPIX.SR "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
on of Building and Property Impr File No. 29950KF/NF C Page #7 File No. 29950KF/NF C 1500 1504 7TH STREET AND 870 880 JONES STREET City BERKELEY County ALAMEDA State CA Zip Code 94704 DESCRIPTION OF PROPERTY IMPROVEMENTS The subject building was inspected from the exterior only as this was a drive by appraisal per client's instructions. The 5769 sq. ft. gross building is a typical walkup multifamily dwelling built around 1980 90's. Upkeep by regularly scheduled maintenance has been adequate as the building is in average condition. Exterior painting is adequate. Street visibility, access, and setbacks are adequate. The design and curb appeal is typical for the Berkeley market area. The site is located within close proximity to the University of California Berkeley campus which gives it added locational value to potential tenants. Landscaping is adequate with native plants and trees. The construction is wood frame with painted stucco siding. Driveways and parking is judged to be adequate. All utilities are connected to the site and appear to be operating properly. The roof appears to be water tight with no evidence of leaks and appears to have a remaining economic life of at least 50 60 years. No visible exterior defects or deferred maintenance were observed during my exterior inspection. The subject property should compete well for all tenant types within the Berkeley market area and beyond. It should command competitve market rents based on its present condition. The subject has the following unit breakdown per Berkeley Housing Authority: Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Comparable Photos 1 3 File No. 29950KF/NF C Page #8 1500 1504 7TH STREET AND 870 880 JONES STREET City BERKELEY County ALAMEDA State CA Zip Code 94704 1817 7TH ST Sales Price G.B.A. Age/Yr. Blt. Comparable 1 795,000 43 Comparable 2 2716 WEBSTER STREET Sales Price 1,100,000 G.B.A. Age/Yr. Blt. 49 Comparable 3 1600 TYLER STREET Sales Price 789,000 G.B.A. Age/Yr. Blt. 49 Form PICPIX.CC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Location Map File No. 29950KF/NF C Page #9 1500 1504 7TH STREET AND 870 880 JONES STREET City BERKELEY County ALAMEDA State CA Zip Code 94704 Form MAP.LOC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Plat Map File No. 29950KF/NF C Page #10 1500 1504 7TH STREET AND 870 880 JONES STREET City BERKELEY County ALAMEDA State CA Zip Code 94704 Form MAP.PLAT "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Surplus Land Addendum File No. 29950KF/NF C Page #11 File No. 29950KF/NF C 1500 1504 7TH STREET AND 870 880 JONES STREET City BERKELEY County ALAMEDA State CA Zip Code 94704 SURPLUS LAND ADDENDUM ****************************************************************************************** COMPARABLES#1, #2 & #3 WERE ADJUSTED FOR SURPLUS LAND. SURPLUS LAND IS THE DIFFERENCE OF AT LEAST 25% OF ADDITIONAL SF OF ONE PROPERTY VS. ANOTHER. THE SQUARE FOOTAGE UP TO 25% IS VALUED AT $2 PER SQUARE BEYOND 25%, THE SQUARE FOOTAGE IS VALUED AT $1 PER SQUARE FOOT. THE ACTUAL SURPLUS LAND ADJUSTMENTS ARE SHOWN IN THE REPORT. THE SAMPLE BELOW EXPLAINS THIS CALCULATIONS. SURPLUS LAND CALULATION EXAMPLE **************************************************** SUBJECT SITE SIZE 5,000 SF COMP SITE SIZE 8,500 SF CALCULATE WHAT POINT IS CONSIDERED EXCESS LAND? SUBECT(SMALLEST SIZE) SURPLUS POINT 5,000 SF X1.25 6,250 SF HOW SURPLUS LAND IS VALUED? SURPLUS LAND POINT 6,250 SF ( LESS ) SUBJECT SITE 8,500 SF ACTUAL EXCESS 2,250 SF X $1/SF = $2,500 CALCULATE NORMAL LAND VALUE: SURPLUS LAND POINT 6250 SF (LESS) SUBJECT SITE 5000 SF NORMAL LAND VALUE 1250 SF X $2/SF = $2,500 TOTAL ADJUSTMENTS FOR EXCESS LAND : NORMAL LAND VALUE $2,500 SURPLUS LAND VALUE $2,250 TOTAL ADJUSTMENT $4,750 QUESTIONS AND ANSWERS: IS THIS SITE SIZE TYPICAL FOR THIS MARKET AREA? YES X NO ARE EASEMENTS ON PROPERTY S PLAT MAP? YES_X NO CAN THE EXCESS LAND BE SUBDIVIDED? YES_X NO PROBABILITY OF OWNE SUBDIVIDING? GOOD X NOT GOOD EFFECTS ONE MARKETABILITY OF THIS PROPERTY? SIGNIFICANT X NOT SIGNIFICANT Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
for Market Conditions Adjustmen File No. 29950KF/NF C Page #12 File No. 29950KF/NF C 1500 1504 7TH STREET AND 870 880 JONES STREET City BERKELEY County ALAMEDA State CA Zip Code 94704 The market data collected by Zillow is judged to be reliable based on price change only. The market data below is for single family homes in Berkeley. However, the multifamily prices tend to lag and match the same trends as the single family market based on discussions with market participants and appraiser's own knowledge. No appraiser adjustments have been made to the Zillow price data. The data confirms what is already known by the buyers and sellers in the Berkeley market and that is prices have been in declined since late 2006. The data also show how Berkeley's residential housing trends compare with the entire US housing market. We have made a 3.5 %/year depreciation adjustment to the comparables to show market decline from the date a comp was sold to the date of inspection by the appraiser. Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Berkeley Rent Control Addendum File No. 29950KF/NF C Page #13 File No. 29950KF/NF C 1500 1504 7TH STREET AND 870 880 JONES STREET City BERKELEY County ALAMEDA State CA Zip Code 94704 2009 2010 RENT BOARD ALLOWABLE INCREASE RENT STABILIZATION BOARD PUBLIC NOTICE 2010 ANNUAL GENERAL ADJUSTMENT ADOPTED At i t s regular meeting on October 19, 2009, the Berkeley Rent Stabilization Board adopted the Annual General Adjustment (AGA) Order for Year 2010 which will allow eligible landlords to increase the 2009 permanent rent ceilings by 0.1%. The 2010 AGA of 0.1% represents 65% of the increase in the Consumer Price Index (CPI) for All Urban Consumers in the Bay Area during the 2008 fiscal year, which was 0.266 % as posted by the Bureau of Labor Statistics in July 2009. The 65% of CPI formula was approved by the voters in the November 2004 general municipal election. The 2010 AGA may not be charged to tenants whose tenancy began on or after January 1, 2009, and who had their rents set pursuant to the Costa Hawkins Rental Housing Act. The Order also sets forth the conditions for qualifying for this rent increase and the notice that must be given to tenants in order to raise the rent. The full text of the regulation and order may be viewed in the Rent Board office at 2125 Milvia Street or at www.ci.berkeley.ca.us/rent/. If you have any questions, you may contact Jay Kelekian at 981 RENT (981 7368). Jay Kelekian Executive Director October 23, 2009 Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Berkeley Rent Control Addendum File No. 29950KF/NF C Page #14 File No. 29950KF/NF C 1500 1504 7TH STREET AND 870 880 JONES STREET City BERKELEY County ALAMEDA State CA Zip Code 94704 1. Overview 2. Registration Requirement to register Exemptions Consequences of failing to register Guide to Berkeley's Rent Stabilization Program Rent Control & Eviction Protection (updated for January 2008) Other city of Berkeley requirements for landlords 3. Rent levels Calculating the lawful rent ceiling Rent ceiling increases Rent ceiling decreases Hearings Certification of rent ceilings 4. Subletting and replacing roommates Subletting generally Replacement tenants Chapters 1 3 Chapters 4 6 Table of Contents Partial turnovers in tenancies when a vacancy increase may be imposed 5. Security deposits state and local law State law regarding security deposits Berkeley law regarding security deposits and interest on deposits 6. Evictions Proceed with caution Eviction checklist local requirements Good cause required The eviction process Improper landlord actions Annual General Adjustments (AGA s) General calendar Home Web Policy Text Only Site Map Contact Us Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Scope of Work for this Assignmen File No. 29950KF/NF C Page #15 File No. 29950KF/NF C 1500 1504 7TH STREET AND 870 880 JONES STREET City BERKELEY County ALAMEDA State CA Zip Code 94704 SCOPE OF WORK Certified General Appraisal Services has prepared a Drive by Summary Narrative Appraisal Report of the subject property in accordance with all applicable governmental requirements, as well as standards and requirements adopted and advanced by the Appraisal Institute and the Society of Real Estate Appraisers. The purpose of this appraisal is to estimate the "as is" market value of the subject. The function is to provide a market value opinion to the intended user, the Berkeley Housing Authority. The property was physically inspected for the street as a drive by inspection.. Land and building areas were verified, Land use controls including zoning and master planning documents were reviewed. Analysis of market conditions relevant to this property included research for comparable sales in Berkeley and adjacent cities and competitive locations. Qualitative and Quantitative analyses of sales, rental, and investment data were made which lead to the conclusions supporting the final estimate of market value. All appraisal reports will contain the following: 1. A review of the prior, current and potential uses of each site, using: a) Discussions with city, county and applicable regulatory staff b) Title searches c) Permits and land uses obtained and held by property owners d) Appropriate agency records to survey the areas surrounding the designated properties. 2. A property description and evaluation, including and confirming: a) Assessor's Parcel Number (APN) b) Legal description c) Plat map d) Ownership history e) Site description f) Description of property improvements, if any g) Neighborhood description h) Descriptions of current or pending changes in zoning i) Highest and best use of the affected property j) Description(s) of comparable site(s) used k) Comparative analysis of subject and comparable site(s) I) Description or illustration of appropriate appraisal approach(es) used* m) Price per unit of comparison analyzed n) Fee simple, leased or other operating data o) Reconciliation and final value estimates ** (Note: While Certified General Appraisal Services may expect and choose to use the three approaches typically employed Cost, Income and Comparable Sales, the Berkeley Housing Authority is primarily interested in appraised values based on the sales of comparable properties, especially in view of the below market rents that are customarily charged for Authority owned rental property.) 3. Each appraisal report must also include the appraiser's certification and statement of limiting conditions. Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Subject Legal Description File No. 29950KF/NF C Page #16 File No. 29950KF/NF C 1500 1504 7TH STREET AND 870 880 JONES STREET City BERKELEY County ALAMEDA State CA Zip Code 94704 SUBJECT LEGAL DESCRIPTION Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29950KF/NF C Page #17 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 institutiona 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 judgment. STATEMENT OF LIMITING CONDITIONS AND CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The inspector's certification that appears in the appraisal report is subject to the following conditions: 1. The inspector 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 valued on the basis of it being under responsible ownership. 2. Any sketch provided in the appraisal report may show approximate dimensions of the improvements and is included only to assist the reader of the report in visualizing the property. The inspector has made no survey of the property. 3. The inspector 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. Any distribution of valuation between land and improvements in the report applies only under the existing program of utilization. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 5. The inspector has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous waste, 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, express or implied, regarding the condition of the property. The inspector 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. 6. The inspector 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 inspector does not assume responsibility for the accuracy of such items that were furnished by other parties. 7. The inspector will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 8. The inspector has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 9. The inspector 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 inspector's identity and professional designations, and references to any professional appraisal organizations or the firm with which the inspector 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 property description section of the report only to data collection or reporting service(s) without having to obtain the inspector's prior written consent. The inspector'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. 10. The inspector is not an employee of the company or individual(s) ordering this report and compensation is not contingent upon the reporting of a predetermined value or direction of value or upon an action or event resulting form the analysis, opinions, conclusions, or the use of this report. This assignment is not based on a required minimum, specific valuation, or the approval of a loan. Page 1 of 2 Certified General Appraisals(510)569 4490 www.appraisalprep.com Form DLC_DEFD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29950KF/NF C Page #18 CERTIFICATION: The inspector certifies and agrees that: 1. 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. 2. I have no present or prospective interest in the property that is the subject to 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, 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. 3. 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 analysis is contingent on the appraised value of the property. 4. I performed this analysis in conformity with 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 this appraisal. 5. I have personally inspected the exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. To the best of my knowledge and belief, all statements and information in this report are true and correct, and I have not knowingly withheld any significant information. 6. I personally prepared all conclusions and opinions about the real estate that were set forth in the inspection. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. ADDRESS OF PROPERTY ANALYZED: 1500 1504 7TH STREET AND 870 880 JONES STREET, BERKELEY, CA 94704 INSPECTOR: Signature: Name: NAPOLEON FORTE, ASA.MANAGING APPRAISER Date Signed: December 04, 2009 State Certification #: AG011918 or State License #: CERTIFIED GENERAL APPRAISER State: CA Expiration Date of Certification or License: 10/13/10 Page 2 of 2 Form DLC_DEFD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29938GS/GS 1402 1408 MARTIN LUTHER KING JR WAY AND 1838 1840 ROSE ST, BERKELEY City BERKELEY County ALAMEDA State CA Zip Code 94709 TABLE OF CONTENTS Invoice... 1 Opinion of Value: $ 1,525,000 or $254,000/Unit : Driveby Appraisal Form 2055... 2 Subject Photos: Front and Street... 5 Comparable Photos 1 3... 6 Subject Plat Map... 7 Description of Building and Property Improvements... 8 Surplus Land Addendum... 9 Support for Market Conditions Adjustment (Time)... 10 Berkeley Rent Control Addendum... 11 Location Map For Subject and Comps... 13 Scope of Work for this Assignment... 14 Subject Legal Description per Prelim Title Report... 15 Statement of Limiting Conditions for Driveby Appraisal... 16 Form TOCPPIX "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Desktop Underwriter Quantitative Analysis Appraisal Report File No. 29938GS/GS THIS SUMMARY APPRAISAL REPORT IS INTENDED FOR USE BY THE LENDER/CLIENT FOR A MORTGAGE FINANCE TRANSACTION ONLY. 1402 1408 MARTIN LUTHER KING JR WAY AND 1838 1City BERKELEY State CA Zip Code 94709 Legal Description SEE ATTACHED LEGEL DESCRIPTION AND SCOPE OF WORK ATTACHED County ALAMEDA Assessor's Parcel No. 059 2270 004 03 Tax Year 09 10 R.E. Taxes $ EXEMPT PUBSpecial Assessments $ Borrower Current Owner BERKELEY HOUSING AUTHORITY Occupant Owner Tenant Vacant Neighborhood or Project Name BERKELEY (6 UNIT APT BUILDING) Project Type PUD Condominium HOA $ /Mo. Sales Price $ MKT VALUE Date of Sale 11/25/2009 Description / $ amount of loan charges/concessions to be paid by seller Property rights appraised Fee Simple Leasehold Map Reference 609 G7 Census Tract 4218.00 Note: Race and the racial composition of the neighborhood are not appraisal factors. Location Urban Suburban Rural Property values Increasing Stable Declining Single family housing Condominium housing PRICE AGE PRICE (if applic.) AGE Built up Over 75% 25 75% Under 25% Demand/supply Shortage In balance Over supply $(000) (yrs) $(000) (yrs) Growth rate Rapid Stable Slow Marketing time Under 3 mos. 3 6 mos. Over 6 mos. 855 Low 29 NA Low NA Neighborhood boundaries SEE LOCATION MAP FOR GENERAL BOUNDARIES. NEIGHBORHOOD HAS 1,830 High 104 NA High NA HOMOGENEOUS MARKET VALUES. RADUIS OF VALUE = 0 mi to 1.2.SINGLE FAMILY PRICE Predominant Predominant RANGE HEADING = MULTI FAMILY PRICE RANGES AS FORM HAS BEEN MODIFIED. 1,400 66.5 Dimensions 126.67 X FT X 135 FT Site area 17,100 Shape RECTANGULAR Specific zoning classification and description R 2A RESTRICTED MULTI FAMILY RESIDENTIAL Zoning compliance 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): Present use Other use, attach description. Utilities Public Other Public Other Off site Improvements Type Public Private Electricity Water Street ASPHALT Gas Sanitary sewer Alley YEAR BUILT EST. 1980 Are there any apparent adverse site conditions (easements, encroachments, special assessments, slide areas, etc.)? Yes No If Yes, attach description. Source(s) used for physical characteristics of property: Interior and exterior inspection Exterior inspection from street Previous appraisal files MLS Assessment and tax records Prior inspection Property owner Other (Describe): LAND VALUE= 610163,PRICE/SF=$36 No. of Stories 2 Type (Det./Att.) DET Exterior Walls STUCCO Roof Surface COMPOSITION Manufactured Housing Yes No Does the property generally conform to the neighborhood in terms of style, condition and construction materials? 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. 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. SUBJECT NEIGHBORHOOD SITE IMPROVEMENTS QUANTITATIVE SALES COMPARISON ANALYSIS Certified General Appraisals(510)569 4490 www.appraisalprep.com 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 3 sales ranging in sales price from $ 1,733,750 to $ 1,825,000. My research revealed a total of 3 listings ranging in list price from $ 859,275 to $ 1,843,250. The analysis of the comparable sales below reflects market reaction to significant variations between the sales and the subject property. FEATURE SUBJECT SALE 1 SALE 2 SALE 3 1402 1408 MARTIN LUTHER 1428 BONITA AVE 2015 HEARST AVE 2137 HASTE ST Address BERKELEY BERKELEY BERKELEY BERKELEY Proximity to Subject 0.08 miles 0.54 miles 1.20 miles Sales Price $ MKT VALUE $ 855,000 $ 1,825,000 $ 1,525,000 Price/Gross Living Area $ N/A / $ 273.25 / $ 316.84 / $ 168.42 / Data & Verification Sources LISTING MLS#40430050 DEED DOC # 299461 (sale) PENDING SALE MLS#40428929 VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +( )$ Adjust. DESCRIPTION +( )$ Adjust. DESCRIPTION +( )$ Adjust. Sales or Financing Concessions Date of Sale/Time Location Site View Design (Style) Actual Age (Yrs.) Condition AVERAGE 17,100 2 STO AP BLDG 29 AVERAGE SALE/LIST=99% 81 9/18/09 EQUAL 8100 2 STO AP BD/EQ 102 EQUAL 8,500 6,400 +11,030 0 0 +7,300 BANK LOAN 54 9/18/09 EQUAL 5156 2 STO AP BD/EQ 46 EQUAL 13,600 +13,230 0 0 +1,700 SALE/LIST=99% 31 10/12/09 EQUAL 9055 2 STO AP BD/EQ 104 EQUAL 15,000 7,400 +10,310 0 0 +7,500 Above Grade Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Room Count 33 21 12 14 5 4 +20,000 28 14 7 +9,500 24 9 8 +14,000 Gross Living Area 6,944 Sq. Ft. 3,129 Sq. Ft. +57,225 5,760 Sq. Ft. +17,760 9,055 Sq. Ft. 31,665 Basement & Finished Rooms Below Grade Garage/Carport STORAGE=NO SECURITY=YES 3 NO NO 3 NO NO 7 10,000 NO NO 8 12,500 NO. OF UNITS 6 3 0 7 0 8 0 PRICE/UNIT $ N/A 285,000 260,710 190,630 Net Adj. (total) + $ 80,655 + $ 18,590 + $ 34,755 Adjusted Sales Price Net 9.4 % Net 1.0 % Net 2.3 % of Comparables Gross 12.9 % $ 935,655 Gross 3.6 % $ 1,843,590 Gross 6.5 % $ 1,490,245 Date of Prior Sale 3/1/1986 5/20/2008 9/29/2009 3/14/2007 Price of Prior Sale $ UNKNOWN $ UNKN NO PUBLIC DATA $ UNKN NO PUBLIC DATA $ 1,435,000 Analysis of any current agreement of sale, option, or listing of the subject property and analysis of the prior sales of subject and comparables: OWNERSHIP HISTORY: CITY OF BERKELEY AND NOW BERKELEY HSE AUTH. HAS OWNED THIS PROP. SINCE SEPT 2, 1987 PER ALAMEDA CO. RECORDS. Summary of sales comparison and value conclusion: MOST WEIGHT WAS GIVEN TO COMPS # 1 & #2 DUE TO UNIT COUNT, GLA, PROXIMITY, RECENT SALE, AND MOST SIMILAR FEATURES. COMP # 3 PROVIDES SUPPORT FOR THE VALUE ESTIMATE. COMPS USED WERE THE BEST CLOSED AND LISTED SALES AT TIME OF INSPECTION. ADEQUATE WEIGHT IS GIVEN TO THE ACTIVE LISTINGS AS THEY INDICATE THE HIGHEST "ASKING PRICES" IN A DECLINING MARKET. SALE #1SALE #2SALE #3 REQUIRED SURPLUS LAND ADJUSTMENTS DUE TO SITE SIZE DIFFERENCES. SEE SURPLUS LAND ADDENDUM. TYPICAL APT. BUYERS WOULD MOST LIKELY MAKE THEIR FINAL OFFER/BUY DECISION BY APPLYING A REASONABLE PRICE/UNIT COMPARISON WHICH THE DATA SHOWED AVG. P/U OF $ 245447.APPRAISER ASSIGNED A PRICE/ UNIT OF $ 254235,BASED ON CONSIDERING RELEVANT MARKET DATA. This appraisal is made "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. EXTERIOR INSPECTION REVEALED NO VISIBLE EXTERIOR DEFECTS. BASED ON AN EXTERIOR INSPECTION FROM THE STREET OR AN INTERIOR AND EXTERIOR INSPECTION, I ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THIS REPORT TO BE $ 1,525,000, AS OF 11/25/2009. PAGE 1 OF 3 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE File No. 29938GS/GS Page #2 Fannie Mae Form 2055 9 96
File No. 29938GS/GS Page #3 PUD Desktop Underwriter Quantitative Analysis Appraisal Report File No. 29938GS/GS Project Information for PUDs (If applicable) Is the developer/builder in control of the Home Owners' Association (HOA)? Yes 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 NOT APPLICABLE Total number of units NOT APPLICABLE Total number of units sold NOT APPLICABLE 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? Yes No If yes, date of conversion: Does the project contain any multi dwelling units? Yes No Data Source: Are the common elements completed? Yes No If No, describe status of completion: 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: CONDOMINIUM 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 NOT APPLICABLE 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 the project, quality of construction, unit mix, etc.: Are the common elements completed? Yes No If No, describe status of completion: 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: 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 judgment. 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 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. PAGE 2 OF 3 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE Fannie Mae Form 2055 9 96
File No. 29938GS/GS Page #4 Desktop Underwriter Quantitative Analysis Appraisal Report APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: File No. 29938GS/GS 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 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: NAPOLEON FORTE, ASA. MANAGING APPRAISER SUPERVISORY APPRAISER (ONLY IF REQUIRED): Signature: Name: NAPOLEON FORTE, ASA.MANAGING APPRAISER Company Name: CERTIFIED GENERAL APPRAISAL SERVICES Company Address: 306 PENDLETON WAY OAKLAND, CA 94621 Date of Report/Signature: December 07, 2009 State Certification #: AG011918 or State License #: CERTIFIED GENERAL APPRAISER State: CA Expiration Date of Certification or License: 10/13/10 Signature: Name: Company Name: Company Address: Date of Report/Signature: State Certification #: or State License #: State: Expiration Date of Certification or License: ADDRESS OF PROPERTY APPRAISED: 1402 1408 MARTIN LUTHER KING JR WAY AND 1838 1840 ROSE S BERKELEY, CA 94709 APPRAISED VALUE OF SUBJECT PROPERTY $ EFFECTIVE DATE OF APPRAISAL/INSPECTION LENDER/CLIENT: Name: Company Name: Company Address: 1525000 11/25/2009 BERKELEY HOUSING AUTHORITY MS. TIA M. INGRAM, EXECUTIVE DIRECTOR BERKELEY HOUSING AUTHORITY 1901 FAIRVIEW STREET, BERKELEY, CA 94703 SUPERVISORY APPRAISER: PAGE 3 OF 3 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 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE Fannie Mae Form 2055 9 96
Subject Photos: Front and Street 1402 1408 MARTIN LUTHER KING JR WAY AND 1838 1840 ROSE ST, BERKELEY City BERKELEY County ALAMEDA State CA Zip Code 94709 File No. 29938GS/GS Page #5 Subject Front 1402 1408 MARTIN LUTHER KING JR WAY AN Sales Price MKT VALUE Gross Living Area 6,944 Total Rooms 33 Total Bedrooms 21 Total Bathrooms 12 Location AVERAGE View Site 17,100 Quality Age 29 SUBJECT REAR (NO REAR DRIVEBY) Subject Street Form PICPIX.SR "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Comparable Photos 1 3 1402 1408 MARTIN LUTHER KING JR WAY AND 1838 1840 ROSE ST, BERKELEY City BERKELEY County ALAMEDA State CA Zip Code 94709 File No. 29938GS/GS Page #6 Comparable 1 1428 BONITA AVE Sales Price 855,000 G.B.A. Age/Yr. Blt. 102 Comparable 2 2015 HEARST AVE Sales Price 1,825,000 G.B.A. Age/Yr. Blt. 46 Comparable 3 2137 HASTE ST Sales Price 1,525,000 G.B.A. Age/Yr. Blt. 104 Form PICPIX.CC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Subject Plat Map File No. 29938GS/GS Page #7 1402 1408 MARTIN LUTHER KING JR WAY AND 1838 1840 ROSE ST, BERKELEY City BERKELEY County ALAMEDA State CA Zip Code 94709 Form MAP.PLAT "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
on of Building and Property Impr File No. 29938GS/GS Page #8 File No. 29938GS/GS 1402 1408 MARTIN LUTHER KING JR WAY AND 1838 1840 ROSE ST, BERKELEY City BERKELEY County ALAMEDA State CA Zip Code 94709 DESCRIPTION OF PROPERTY IMPROVEMENTS The subject building was inspected from the exterior only as this was a drive by appraisal per client's instructions. The 6,944 sq. ft. gross building is a typical walkup multifamily dwelling built around 1980 90's. Upkeep by regularly scheduled maintenance has been adequate as the building is in average condition. Exterior painting is adequate. Street visibility, access, and setbacks are adequate. The design and curb appeal is typical for the Berkeley market area. The site is located within close proximity to the University of California Berkeley campus which gives it added locational value to potential tenants. Landscaping is adequate with native plants and trees. The construction is wood frame with painted stucco siding. Driveways and parking is judged to be adequate. All utilities are connected to the site and appear to be operating properly. The roof appears to be water tight with no evidence of leaks and appears to have a remaining economic life of at least 50 60 years. No visible exterior defects or deferred maintenance were observed during my exterior inspection. The subject property should compete well for all tenant types within the Berkeley market area and beyond. It should command competitve market rents based on its present condition. The subject has the following unit breakdown per Berkeley Housing Authority: Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Surplus Land Addendum File No. 29938GS/GS Page #9 File No. 29938GS/GS 1402 1408 MARTIN LUTHER KING JR WAY AND 1838 1840 ROSE ST, BERKELEY City BERKELEY County ALAMEDA State CA Zip Code 94709 SURPLUS LAND ADDENDUM ****************************************************************************************** COMPARABLES#1, #2 & #3 WERE ADJUSTED FOR SURPLUS LAND. SURPLUS LAND IS THE DIFFERENCE OF AT LEAST 25% OF ADDITIONAL SF OF ONE PROPERTY VS. ANOTHER. THE SQUARE FOOTAGE UP TO 25% IS VALUED AT $2 PER SQUARE BEYOND 25%, THE SQUARE FOOTAGE IS VALUED AT $1 PER SQUARE FOOT. THE ACTUAL SURPLUS LAND ADJUSTMENTS ARE SHOWN IN THE REPORT. THE SAMPLE BELOW EXPLAINS THIS CALCULATIONS. SURPLUS LAND CALULATION EXAMPLE **************************************************** SUBJECT SITE SIZE 5,000 SF COMP SITE SIZE 8,500 SF CALCULATE WHAT POINT IS CONSIDERED EXCESS LAND? SUBECT(SMALLEST SIZE) SURPLUS POINT 5,000 SF X1.25 6,250 SF HOW SURPLUS LAND IS VALUED? SURPLUS LAND POINT 6,250 SF ( LESS ) SUBJECT SITE 8,500 SF ACTUAL EXCESS 2,250 SF X $1/SF = $2,500 CALCULATE NORMAL LAND VALUE: SURPLUS LAND POINT 6250 SF (LESS) SUBJECT SITE 5000 SF NORMAL LAND VALUE 1250 SF X $2/SF = $2,500 TOTAL ADJUSTMENTS FOR EXCESS LAND : NORMAL LAND VALUE $2,500 SURPLUS LAND VALUE $2,250 TOTAL ADJUSTMENT $4,750 QUESTIONS AND ANSWERS: IS THIS SITE SIZE TYPICAL FOR THIS MARKET AREA? YES X NO ARE EASEMENTS ON PROPERTY S PLAT MAP? YES_X NO CAN THE EXCESS LAND BE SUBDIVIDED? YES_X NO PROBABILITY OF OWNE SUBDIVIDING? GOOD X NOT GOOD EFFECTS ONE MARKETABILITY OF THIS PROPERTY? SIGNIFICANT X NOT SIGNIFICANT Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
for Market Conditions Adjustmen File No. 29938GS/GS Page #10 File No. 29938GS/GS 1402 1408 MARTIN LUTHER KING JR WAY AND 1838 1840 ROSE ST, BERKELEY City BERKELEY County ALAMEDA State CA Zip Code 94709 The market data collected by Zillow is judged to be reliable based on price change only. The market data below is for single family homes in Berkeley. However, the multifamily prices tend to lag and match the same trends as the single family market based on discussions with market participants and appraiser's own knowledge. No appraiser adjustments have been made to the Zillow price data. The data confirms what is already known by the buyers and sellers in the Berkeley market and that is prices have been in declined since late 2006. The data also show how Berkeley's residential housing trends compare with the entire US housing market. We have made a 3.5 %/year depreciation adjustment to the comparables to show market decline from the date a comp was sold to the date of inspection by the appraiser. Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Berkeley Rent Control Addendum File No. 29938GS/GS Page #11 File No. 29938GS/GS 1402 1408 MARTIN LUTHER KING JR WAY AND 1838 1840 ROSE ST, BERKELEY City BERKELEY County ALAMEDA State CA Zip Code 94709 2009 2010 RENT BOARD ALLOWABLE INCREASE RENT STABILIZATION BOARD PUBLIC NOTICE 2010 ANNUAL GENERAL ADJUSTMENT ADOPTED At i t s regular meeting on October 19, 2009, the Berkeley Rent Stabilization Board adopted the Annual General Adjustment (AGA) Order for Year 2010 which will allow eligible landlords to increase the 2009 permanent rent ceilings by 0.1%. The 2010 AGA of 0.1% represents 65% of the increase in the Consumer Price Index (CPI) for All Urban Consumers in the Bay Area during the 2008 fiscal year, which was 0.266 % as posted by the Bureau of Labor Statistics in July 2009. The 65% of CPI formula was approved by the voters in the November 2004 general municipal election. The 2010 AGA may not be charged to tenants whose tenancy began on or after January 1, 2009, and who had their rents set pursuant to the Costa Hawkins Rental Housing Act. The Order also sets forth the conditions for qualifying for this rent increase and the notice that must be given to tenants in order to raise the rent. The full text of the regulation and order may be viewed in the Rent Board office at 2125 Milvia Street or at www.ci.berkeley.ca.us/rent/. If you have any questions, you may contact Jay Kelekian at 981 RENT (981 7368). Jay Kelekian Executive Director October 23, 2009 Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Berkeley Rent Control Addendum File No. 29938GS/GS Page #12 File No. 29938GS/GS 1402 1408 MARTIN LUTHER KING JR WAY AND 1838 1840 ROSE ST, BERKELEY City BERKELEY County ALAMEDA State CA Zip Code 94709 1. Overview 2. Registration Requirement to register Exemptions Consequences of failing to register Guide to Berkeley's Rent Stabilization Program Rent Control & Eviction Protection (updated for January 2008) Other city of Berkeley requirements for landlords 3. Rent levels Calculating the lawful rent ceiling Rent ceiling increases Rent ceiling decreases Hearings Certification of rent ceilings 4. Subletting and replacing roommates Subletting generally Replacement tenants Chapters 1 3 Chapters 4 6 Table of Contents Partial turnovers in tenancies when a vacancy increase may be imposed 5. Security deposits state and local law State law regarding security deposits Berkeley law regarding security deposits and interest on deposits 6. Evictions Proceed with caution Eviction checklist local requirements Good cause required The eviction process Improper landlord actions Annual General Adjustments (AGA s) General calendar Home Web Policy Text Only Site Map Contact Us Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Location Map For Subject and Comps File No. 29938GS/GS Page #13 1402 1408 MARTIN LUTHER KING JR WAY AND 1838 1840 ROSE ST, BERKELEY City BERKELEY County ALAMEDA State CA Zip Code 94709 Form MAP.LOC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Scope of Work for this Assignmen File No. 29938GS/GS Page #14 File No. 29938GS/GS 1402 1408 MARTIN LUTHER KING JR WAY AND 1838 1840 ROSE ST, BERKELEY City BERKELEY County ALAMEDA State CA Zip Code 94709 SCOPE OF WORK Certified General Appraisal Services has prepared a Drive by Summary Narrative Appraisal Report of the subject property in accordance with all applicable governmental requirements, as well as standards and requirements adopted and advanced by the Appraisal Institute and the Society of Real Estate Appraisers. The purpose of this appraisal is to estimate the "as is" market value of the subject. The function is to provide a market value opinion to the intended user, the Berkeley Housing Authority. The property was physically inspected for the street as a drive by inspection.. Land and building areas were verified, Land use controls including zoning and master planning documents were reviewed. Analysis of market conditions relevant to this property included research for comparable sales in Berkeley and adjacent cities and competitive locations. Qualitative and Quantitative analyses of sales, rental, and investment data were made which lead to the conclusions supporting the final estimate of market value. All appraisal reports will contain the following: 1. A review of the prior, current and potential uses of each site, using: a) Discussions with city, county and applicable regulatory staff b) Title searches c) Permits and land uses obtained and held by property owners d) Appropriate agency records to survey the areas surrounding the designated properties. 2. A property description and evaluation, including and confirming: a) Assessor's Parcel Number (APN) b) Legal description c) Plat map d) Ownership history e) Site description f) Description of property improvements, if any g) Neighborhood description h) Descriptions of current or pending changes in zoning i) Highest and best use of the affected property j) Description(s) of comparable site(s) used k) Comparative analysis of subject and comparable site(s) I) Description or illustration of appropriate appraisal approach(es) used* m) Price per unit of comparison analyzed n) Fee simple, leased or other operating data o) Reconciliation and final value estimates ** (Note: While Certified General Appraisal Services may expect and choose to use the three approaches typically employed Cost, Income and Comparable Sales, the Berkeley Housing Authority is primarily interested in appraised values based on the sales of comparable properties, especially in view of the below market rents that are customarily charged for Authority owned rental property.) 3. Each appraisal report must also include the appraiser's certification and statement of limiting conditions. Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Legal Description per Prelim Title File No. 29938GS/GS Page #15 File No. 29938GS/GS 1402 1408 MARTIN LUTHER KING JR WAY AND 1838 1840 ROSE ST, BERKELEY City BERKELEY County ALAMEDA State CA Zip Code 94709 SUBJECT LEGAL DESCRIPTION Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29938GS/GS Page #16 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 institutiona 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 judgment. STATEMENT OF LIMITING CONDITIONS AND CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The inspector's certification that appears in the appraisal report is subject to the following conditions: 1. The inspector 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 valued on the basis of it being under responsible ownership. 2. Any sketch provided in the appraisal report may show approximate dimensions of the improvements and is included only to assist the reader of the report in visualizing the property. The inspector has made no survey of the property. 3. The inspector 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. Any distribution of valuation between land and improvements in the report applies only under the existing program of utilization. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 5. The inspector has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous waste, 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, express or implied, regarding the condition of the property. The inspector 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. 6. The inspector 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 inspector does not assume responsibility for the accuracy of such items that were furnished by other parties. 7. The inspector will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 8. The inspector has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 9. The inspector 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 inspector's identity and professional designations, and references to any professional appraisal organizations or the firm with which the inspector 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 property description section of the report only to data collection or reporting service(s) without having to obtain the inspector's prior written consent. The inspector'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. 10. The inspector is not an employee of the company or individual(s) ordering this report and compensation is not contingent upon the reporting of a predetermined value or direction of value or upon an action or event resulting form the analysis, opinions, conclusions, or the use of this report. This assignment is not based on a required minimum, specific valuation, or the approval of a loan. Page 1 of 2 Certified General Appraisals(510)569 4490 www.appraisalprep.com Form DLC_DEFD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29938GS/GS Page #17 CERTIFICATION: The inspector certifies and agrees that: 1. 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. 2. I have no present or prospective interest in the property that is the subject to 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, 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. 3. 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 analysis is contingent on the appraised value of the property. 4. I performed this analysis in conformity with 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 this appraisal. 5. I have personally inspected the exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. To the best of my knowledge and belief, all statements and information in this report are true and correct, and I have not knowingly withheld any significant information. 6. I personally prepared all conclusions and opinions about the real estate that were set forth in the inspection. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. ADDRESS OF PROPERTY ANALYZED: 1402 1408 MARTIN LUTHER KING JR WAY AND 1838 1840 ROSE ST, BERKE INSPECTOR: Signature: Name: NAPOLEON FORTE, ASA.MANAGING APPRAISER Date Signed: December 07, 2009 State Certification #: AG011918 or State License #: CERTIFIED GENERAL APPRAISER State: CA Expiration Date of Certification or License: 10/13/10 Page 2 of 2 Form DLC_DEFD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29943RB/RB 2725 2737 SOJOURNER TRUTH CT., AND 2798 A B SACRAMENTO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 TABLE OF CONTENTS Invoice... 1 Opinion of Value: $1,128,000 or $ 125,000/Unit : 9 Units: Driveby Appraisal Form 2055... 2 Subject Photos: Front, Rear and Street... 5 Comparable Photos... 6 Location Map... 7 Plat Map... 8 Description of Building and Property Improvements... 9 Surplus Land Addendum... 10 Support for Market Conditions Adjustment (Time)... 11 Berkeley Rent Control Addendum... 12 Scope of Work for this Assignment... 14 Subject Legal Description per Prelim Title Report... 15 Statement of Limiting Conditions for Driveby Appraisal... 16 Form TOCPPIX "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Desktop Underwriter Quantitative Analysis Appraisal Report File No. 29943RB/RB THIS SUMMARY APPRAISAL REPORT IS INTENDED FOR USE BY THE LENDER/CLIENT FOR A MORTGAGE FINANCE TRANSACTION ONLY. 2725 2737 SOJOURNER TRUTH CT., AND 2798 A B SACity BERKELEY State CA Zip Code 94702 Legal Description SEE LEGAL DESCRIPTION AND SCOPE OF WORK ATTACHED County ALAMEDA Assessor's Parcel No. 054 1734 011 01 Tax Year 9 10 R.E. Taxes $ EXEMPT Special Assessments $ Borrower Current Owner BERKELEY HOUSING AUTHORITY Occupant Owner Tenant Vacant Neighborhood or Project Name BERKELEY (9 UNIT APT BUILDING) Project Type PUD Condominium HOA $ /Mo. Sales Price $ MKT VALUE Date of Sale 11/25/2009 Description / $ amount of loan charges/concessions to be paid by seller Property rights appraised Fee Simple Leasehold Map Reference 629 F3 Census Tract 4233.00/2 Note: Race and the racial composition of the neighborhood are not appraisal factors. Location Urban Suburban Rural Property values Increasing Stable Declining Single family housing Condominium housing PRICE AGE PRICE (if applic.) AGE Built up Over 75% 25 75% Under 25% Demand/supply Shortage In balance Over supply $(000) (yrs) $(000) (yrs) Growth rate Rapid Stable Slow Marketing time Under 3 mos. 3 6 mos. Over 6 mos. 729 Low 49 NA Low NA Neighborhood boundaries SEE LOCATION MAP FOR GENERAL BOUNDARIES. NEIGHBORHOOD HAS 1,510 High 99 NA High NA HOMOGENEOUS MARKET VALUES. RADUIS OF VALUE = 0 mi to 1.54.SINGLE FAMILY PRICE Predominant Predominant RANGE HEADING = MULTI FAMILY PRICE RANGES AS FORM HAS BEEN MODIFIED. 1,110 74 Dimensions 30FT x 151FT x 31FT x 179FT x 105FT x 170 FT Site area 16,562 Shape IRREGULAR Specific zoning classification and description R 3 MULTI FAMILY RESIDENTIAL Zoning compliance 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): Present use Other use, attach description. Utilities Public Other Public Other Off site Improvements Type Public Private Electricity Water Street ASPHALT Gas Sanitary sewer Alley YEAR BUILT EST. 1960 Are there any apparent adverse site conditions (easements, encroachments, special assessments, slide areas, etc.)? Yes No If Yes, attach description. Source(s) used for physical characteristics of property: Interior and exterior inspection Exterior inspection from street Previous appraisal files MLS Assessment and tax records Prior inspection Property owner Other (Describe): LAND VALUE= 451146,PRICE/SF=$27 No. of Stories 2 Type (Det./Att.) DET Exterior Walls STUCCO Roof Surface COMPOSITION Manufactured Housing Yes No Does the property generally conform to the neighborhood in terms of style, condition and construction materials? 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. 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. SUBJECT NEIGHBORHOOD SITE IMPROVEMENTS QUANTITATIVE SALES COMPARISON ANALYSIS Certified General Appraisals(510)569 4490 www.appraisalprep.com 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 3 sales ranging in sales price from $ 1,429,750 to $ 1,505,000. My research revealed a total of 3 listings ranging in list price from $ 732,645 to $ 1,520,050. The analysis of the comparable sales below reflects market reaction to significant variations between the sales and the subject property. FEATURE SUBJECT SALE 1 SALE 2 SALE 3 2725 2737 SOJOURNER TRU 1335 SHATTUCK AVENUE 2716 WEBSTER STREET 1523 FAIRVIEW STREET Address BERKELEY BERKELEY BERKELEY BERKELEY Proximity to Subject 1.54 miles 1.52 miles 0.50 miles Sales Price $ MKT VALUE $ 1,505,000 $ 1,100,000 $ 729,000 Price/Gross Living Area $ N/A / $ 179.19 / $ 217.69 / $ 165.83 / Data & Verification Sources DEED DOC #2008 24731 DEED DOC # 2008 231444 DEED DOC#2008 231970 VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +( )$ Adjust. DESCRIPTION +( )$ Adjust. DESCRIPTION +( )$ Adjust. Sales or Financing Concessions Date of Sale/Time Location Site View Design (Style) Actual Age (Yrs.) Condition AVERAGE 16,562 2 STO AP BLDG 49 AVERAGE BANK LOAN 74 2/1/08 SUPERIOR 8765 2 STO AP BD/EQ 99 EQUAL 109,300 45,150 +9,990 0 0 +5,000 BANK LOAN 40 7/17/08 EQUAL 6800 2 STO AP BD/EQ 49 EQUAL 59,800 +11,460 0 0 BANK LOAN 88 07/29/08 EQUAL 6800 2 STO AP BD/EQ 63 EQUAL 38,700 +11,460 0 0 +1,400 Above Grade Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Room Count 49 31 18 38 17 13 +16,500 15 10 5 +27,500 20 8 6 +29,000 Gross Living Area 10,390 Sq. Ft. 8,399 Sq. Ft. +29,865 5,053 Sq. Ft. +80,055 4,396 Sq. Ft. +89,910 Basement & Finished Rooms Below Grade Garage/Carport STORAGE=YES SECURITY=YES 9 YES YES 1 +20,000 YES YES 5 +10,000 YES YES 5 +10,000 NO. OF UNITS 9 13 0 5 0 6 0 PRICE/UNIT $ N/A 115,770 220,000 121,500 Net Adj. (total) + $ 73,095 + $ 69,215 + $ 103,070 Adjusted Sales Price Net 4.9 % Net 6.3 % Net 14.1 % of Comparables Gross 15.7 % $ 1,431,905 Gross 17.2 % $ 1,169,215 Gross 24.8 % $ 832,070 Date of Prior Sale 7/25/1986 7/2/1990 6/14/04 5/27/2004 Price of Prior Sale $ UNKNOWN $ UNKN NO PUBLIC DATA $ 980,000 $ $725,000 Analysis of any current agreement of sale, option, or listing of the subject property and analysis of the prior sales of subject and comparables: OWNERSHIP HISTORY: CITY OF BERKELEY HOUSING AUTHORITY HAS OWNED THIS PROPERTY SINCE JULY 25, 1986 PER ALAMEDA CO. RECORDS. Summary of sales comparison and value conclusion: MOST WEIGHT WAS GIVEN TO COMPS # 1 & #2 DUE TO UNIT COUNT, GLA, PROXIMITY, RECENT SALE, AND MOST SIMILAR FEATURES. COMP # 3 PROVIDES SUPPORT FOR THE VALUE ESTIMATE. COMPS USED WERE THE BEST CLOSED AND LISTED SALES AT TIME OF INSPECTION. ADEQUATE WEIGHT IS GIVEN TO THE ACTIVE LISTINGS AS THEY INDICATE THE HIGHEST "ASKING PRICES" IN A DECLINING MARKET. SALE #1SALE #2SALE #3 REQUIRED SURPLUS LAND ADJUSTMENTS DUE TO SITE SIZE DIFFERENCES. SEE SURPLUS LAND ADDENDUM. TYPICAL APT. BUYERS WOULD MOST LIKELY MAKE THEIR FINAL OFFER/BUY DECISION BY APPLYING A REASONABLE PRICE/UNIT COMPARISON WHICH THE DATA SHOWED AVG. P/U OF $ 152423.APPRAISER ASSIGNED A PRICE/ UNIT OF $ 125318,BASED ON CONSIDERING RELEVANT MARKET DATA. This appraisal is made "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. EXTERIOR INSPECTION REVEALED NO VISIBLE EXTERIOR DEFECTS. BASED ON AN EXTERIOR INSPECTION FROM THE STREET OR AN INTERIOR AND EXTERIOR INSPECTION, I ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THIS REPORT TO BE $ 1,128,000, AS OF 11/25/2009. PAGE 1 OF 3 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE File No. 29943RB/RB Page #2 Fannie Mae Form 2055 9 96
File No. 29943RB/RB Page #3 PUD Desktop Underwriter Quantitative Analysis Appraisal Report File No. 29943RB/RB Project Information for PUDs (If applicable) Is the developer/builder in control of the Home Owners' Association (HOA)? Yes 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 NOT APPLICABLE Total number of units NOT APPLICABLE Total number of units sold NOT APPLICABLE 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? Yes No If yes, date of conversion: Does the project contain any multi dwelling units? Yes No Data Source: Are the common elements completed? Yes No If No, describe status of completion: 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: CONDOMINIUM 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 NOT APPLICABLE 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 the project, quality of construction, unit mix, etc.: Are the common elements completed? Yes No If No, describe status of completion: 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: 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 judgment. 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 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. PAGE 2 OF 3 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE Fannie Mae Form 2055 9 96
File No. 29943RB/RB Page #4 Desktop Underwriter Quantitative Analysis Appraisal Report APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: File No. 29943RB/RB 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 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: NAPOLEON FORTE, ASA. MANAGING APPRAISER SUPERVISORY APPRAISER (ONLY IF REQUIRED): Signature: Name: NAPOLEON FORTE, ASA.MANAGING APPRAISER Company Name: CERTIFIED GENERAL APPRAISAL SERVICES Company Address: 306 PENDLETON WAY OAKLAND, CA 94621 Date of Report/Signature: December 04, 2009 State Certification #: AG011918 or State License #: CERTIFIED GENERAL APPRAISER State: CA Expiration Date of Certification or License: 10/13/10 Signature: Name: Company Name: Company Address: Date of Report/Signature: State Certification #: or State License #: State: Expiration Date of Certification or License: ADDRESS OF PROPERTY APPRAISED: 2725 2737 SOJOURNER TRUTH CT., AND 2798 A B SACRAMENTO BERKELEY, CA 94702 APPRAISED VALUE OF SUBJECT PROPERTY $ EFFECTIVE DATE OF APPRAISAL/INSPECTION LENDER/CLIENT: Name: Company Name: Company Address: 1128000 11/25/2009 MS. TIA M. INGRAM, EXECUTIVE DIRECTOR BERKELEY HOUSING AUTHORITY 1901 FAIRVIEW STREET, BERKELEY, CA 94703 SUPERVISORY APPRAISER: PAGE 3 OF 3 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 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE Fannie Mae Form 2055 9 96
Subject Photos: Front, Rear and Street 2725 2737 SOJOURNER TRUTH CT., AND 2798 A B SACRAMENTO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 File No. 29943RB/RB Page #5 Subject Front 2725 2737 SOJOURNER TRUTH CT., AND 279 Sales Price MKT VALUE G.B.A. Age/Yr.Blt. 49 Subject Rear View (Driveby Appraisal) Subject Street Form PICPIX.SC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Comparable Photo Page 2725 2737 SOJOURNER TRUTH CT., AND 2798 A B SACRAMENTO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 File No. 29943RB/RB Page #6 Prox. to Subject Sale Price Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location View Site Quality Age Comparable 1 Prox. to Subject Sale Price Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location View Site Quality Age Comparable 2 Prox. to Subject Sale Price Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location View Site Quality Age Comparable 3 Form PICPIX.CR "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Location Map File No. 29943RB/RB Page #7 2725 2737 SOJOURNER TRUTH CT., AND 2798 A B SACRAMENTO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 Form MAP.LOC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Plat Map File No. 29943RB/RB Page #8 2725 2737 SOJOURNER TRUTH CT., AND 2798 A B SACRAMENTO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 Form MAP.PLAT "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
on of Building and Property Impr File No. 29943RB/RB Page #9 File No. 29943RB/RB 2725 2737 SOJOURNER TRUTH CT., AND 2798 A B SACRAMENTO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 DESCRIPTION OF PROPERTY IMPROVEMENTS The subject buildings was inspected from the exterior only as this was a drive by appraisal per client's instructions. The 10,309 sq. ft. gross buildings are a typical walkup multifamily dwelling built around 1960 70's. There are (9) 2 story units. 2 units at 2798 Sacramento Street and 7 units at 2725 37 Sojourner Truth Court. Upkeep by regularly scheduled maintenance has been adequate as the building is in average condition. Exterior painting is adequate. Street visibility, access, and setbacks are adequate. The design and curb appeal is typical for the Berkeley market area. The site is located within close proximity to the University of California Berkeley campus which gives it added locational value to potential tenants. Landscaping is adequate with native plants and trees. The construction is wood frame with painted stucco siding. Driveways and parking is judged to be adequate. All utilities are connected to the site and appear to be operating properly. The roof appears to be water tight with no evidence of leaks and appears to have a remaining economic life of at least 25 30 years. No visible exterior defects or deferred maintenance were observed during my exterior inspection. The subject property should compete well for all tenant types within the Berkeley market area and beyond. It should command competitve market rents based on its present condition. The subject has the following unit breakdown per Berkeley Housing Authority: Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Surplus Land Addendum File No. 29943RB/RB Page #10 File No. 29943RB/RB 2725 2737 SOJOURNER TRUTH CT., AND 2798 A B SACRAMENTO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 SURPLUS LAND ADDENDUM ****************************************************************************************** COMPARABLES#1, #2 & #3 WERE ADJUSTED FOR SURPLUS LAND. SURPLUS LAND IS THE DIFFERENCE OF AT LEAST 25% OF ADDITIONAL SF OF ONE PROPERTY VS. ANOTHER. THE SQUARE FOOTAGE UP TO 25% IS VALUED AT $2 PER SQUARE BEYOND 25%, THE SQUARE FOOTAGE IS VALUED AT $1 PER SQUARE FOOT. THE ACTUAL SURPLUS LAND ADJUSTMENTS ARE SHOWN IN THE REPORT. THE SAMPLE BELOW EXPLAINS THIS CALCULATIONS. SURPLUS LAND CALULATION EXAMPLE **************************************************** SUBJECT SITE SIZE 5,000 SF COMP SITE SIZE 8,500 SF CALCULATE WHAT POINT IS CONSIDERED EXCESS LAND? SUBECT(SMALLEST SIZE) SURPLUS POINT 5,000 SF X1.25 6,250 SF HOW SURPLUS LAND IS VALUED? SURPLUS LAND POINT 6,250 SF ( LESS ) SUBJECT SITE 8,500 SF ACTUAL EXCESS 2,250 SF X $1/SF = $2,500 CALCULATE NORMAL LAND VALUE: SURPLUS LAND POINT 6250 SF (LESS) SUBJECT SITE 5000 SF NORMAL LAND VALUE 1250 SF X $2/SF = $2,500 TOTAL ADJUSTMENTS FOR EXCESS LAND : NORMAL LAND VALUE $2,500 SURPLUS LAND VALUE $2,250 TOTAL ADJUSTMENT $4,750 QUESTIONS AND ANSWERS: IS THIS SITE SIZE TYPICAL FOR THIS MARKET AREA? YES X NO ARE EASEMENTS ON PROPERTY S PLAT MAP? YES_X NO CAN THE EXCESS LAND BE SUBDIVIDED? YES_X NO PROBABILITY OF OWNE SUBDIVIDING? GOOD X NOT GOOD EFFECTS ONE MARKETABILITY OF THIS PROPERTY? SIGNIFICANT X NOT SIGNIFICANT Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
for Market Conditions Adjustmen File No. 29943RB/RB Page #11 File No. 29943RB/RB 2725 2737 SOJOURNER TRUTH CT., AND 2798 A B SACRAMENTO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 The market data collected by Zillow is judged to be reliable based on price change only. The market data below is for single family homes in Berkeley. However, the multifamily prices tend to lag and match the same trends as the single family market based on discussions with market participants and appraiser's own knowledge. No appraiser adjustments have been made to the Zillow price data. The data confirms what is already known by the buyers and sellers in the Berkeley market and that is prices have been in declined since late 2006. The data also show how Berkeley's residential housing trends compare with the entire US housing market. We have made a 3.5 %/year depreciation adjustment to the comparables to show market decline from the date a comp was sold to the date of inspection by the appraiser. Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Berkeley Rent Control Addendum File No. 29943RB/RB Page #12 File No. 29943RB/RB 2725 2737 SOJOURNER TRUTH CT., AND 2798 A B SACRAMENTO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 2009 2010 RENT BOARD ALLOWABLE INCREASE RENT STABILIZATION BOARD PUBLIC NOTICE 2010 ANNUAL GENERAL ADJUSTMENT ADOPTED At i t s regular meeting on October 19, 2009, the Berkeley Rent Stabilization Board adopted the Annual General Adjustment (AGA) Order for Year 2010 which will allow eligible landlords to increase the 2009 permanent rent ceilings by 0.1%. The 2010 AGA of 0.1% represents 65% of the increase in the Consumer Price Index (CPI) for All Urban Consumers in the Bay Area during the 2008 fiscal year, which was 0.266 % as posted by the Bureau of Labor Statistics in July 2009. The 65% of CPI formula was approved by the voters in the November 2004 general municipal election. The 2010 AGA may not be charged to tenants whose tenancy began on or after January 1, 2009, and who had their rents set pursuant to the Costa Hawkins Rental Housing Act. The Order also sets forth the conditions for qualifying for this rent increase and the notice that must be given to tenants in order to raise the rent. The full text of the regulation and order may be viewed in the Rent Board office at 2125 Milvia Street or at www.ci.berkeley.ca.us/rent/. If you have any questions, you may contact Jay Kelekian at 981 RENT (981 7368). Jay Kelekian Executive Director October 23, 2009 Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Berkeley Rent Control Addendum File No. 29943RB/RB Page #13 File No. 29943RB/RB 2725 2737 SOJOURNER TRUTH CT., AND 2798 A B SACRAMENTO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 1. Overview 2. Registration Requirement to register Exemptions Consequences of failing to register Guide to Berkeley's Rent Stabilization Program Rent Control & Eviction Protection (updated for January 2008) Other city of Berkeley requirements for landlords 3. Rent levels Calculating the lawful rent ceiling Rent ceiling increases Rent ceiling decreases Hearings Certification of rent ceilings 4. Subletting and replacing roommates Subletting generally Replacement tenants Chapters 1 3 Chapters 4 6 Table of Contents Partial turnovers in tenancies when a vacancy increase may be imposed 5. Security deposits state and local law State law regarding security deposits Berkeley law regarding security deposits and interest on deposits 6. Evictions Proceed with caution Eviction checklist local requirements Good cause required The eviction process Improper landlord actions Annual General Adjustments (AGA s) General calendar Home Web Policy Text Only Site Map Contact Us Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Scope of Work for this Assignmen File No. 29943RB/RB Page #14 File No. 29943RB/RB 2725 2737 SOJOURNER TRUTH CT., AND 2798 A B SACRAMENTO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 SCOPE OF WORK Certified General Appraisal Services has prepared a Drive by Summary Narrative Appraisal Report of the subject property in accordance with all applicable governmental requirements, as well as standards and requirements adopted and advanced by the Appraisal Institute and the Society of Real Estate Appraisers. The purpose of this appraisal is to estimate the "as is" market value of the subject. The function is to provide a market value opinion to the intended user, the Berkeley Housing Authority. The property was physically inspected for the street as a drive by inspection.. Land and building areas were verified, Land use controls including zoning and master planning documents were reviewed. Analysis of market conditions relevant to this property included research for comparable sales in Berkeley and adjacent cities and competitive locations. Qualitative and Quantitative analyses of sales, rental, and investment data were made which lead to the conclusions supporting the final estimate of market value. All appraisal reports will contain the following: 1. A review of the prior, current and potential uses of each site, using: a) Discussions with city, county and applicable regulatory staff b) Title searches c) Permits and land uses obtained and held by property owners d) Appropriate agency records to survey the areas surrounding the designated properties. 2. A property description and evaluation, including and confirming: a) Assessor's Parcel Number (APN) b) Legal description c) Plat map d) Ownership history e) Site description f) Description of property improvements, if any g) Neighborhood description h) Descriptions of current or pending changes in zoning i) Highest and best use of the affected property j) Description(s) of comparable site(s) used k) Comparative analysis of subject and comparable site(s) I) Description or illustration of appropriate appraisal approach(es) used* m) Price per unit of comparison analyzed n) Fee simple, leased or other operating data o) Reconciliation and final value estimates ** (Note: While Certified General Appraisal Services may expect and choose to use the three approaches typically employed Cost, Income and Comparable Sales, the Berkeley Housing Authority is primarily interested in appraised values based on the sales of comparable properties, especially in view of the below market rents that are customarily charged for Authority owned rental property.) 3. Each appraisal report must also include the appraiser's certification and statement of limiting conditions. Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Legal Description per Prelim Title File No. 29943RB/RB Page #15 File No. 29943RB/RB 2725 2737 SOJOURNER TRUTH CT., AND 2798 A B SACRAMENTO STREET City BERKELEY County ALAMEDA State CA Zip Code 94702 SUBJECT LEGAL DESCRIPTION Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29943RB/RB Page #16 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 institutiona 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 judgment. STATEMENT OF LIMITING CONDITIONS AND CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The inspector's certification that appears in the appraisal report is subject to the following conditions: 1. The inspector 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 valued on the basis of it being under responsible ownership. 2. Any sketch provided in the appraisal report may show approximate dimensions of the improvements and is included only to assist the reader of the report in visualizing the property. The inspector has made no survey of the property. 3. The inspector 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. Any distribution of valuation between land and improvements in the report applies only under the existing program of utilization. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 5. The inspector has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous waste, 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, express or implied, regarding the condition of the property. The inspector 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. 6. The inspector 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 inspector does not assume responsibility for the accuracy of such items that were furnished by other parties. 7. The inspector will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 8. The inspector has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 9. The inspector 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 inspector's identity and professional designations, and references to any professional appraisal organizations or the firm with which the inspector 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 property description section of the report only to data collection or reporting service(s) without having to obtain the inspector's prior written consent. The inspector'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. 10. The inspector is not an employee of the company or individual(s) ordering this report and compensation is not contingent upon the reporting of a predetermined value or direction of value or upon an action or event resulting form the analysis, opinions, conclusions, or the use of this report. This assignment is not based on a required minimum, specific valuation, or the approval of a loan. Page 1 of 2 Certified General Appraisals(510)569 4490 www.appraisalprep.com Form DLC_DEFD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29943RB/RB Page #17 CERTIFICATION: The inspector certifies and agrees that: 1. 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. 2. I have no present or prospective interest in the property that is the subject to 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, 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. 3. 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 analysis is contingent on the appraised value of the property. 4. I performed this analysis in conformity with 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 this appraisal. 5. I have personally inspected the exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. To the best of my knowledge and belief, all statements and information in this report are true and correct, and I have not knowingly withheld any significant information. 6. I personally prepared all conclusions and opinions about the real estate that were set forth in the inspection. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. ADDRESS OF PROPERTY ANALYZED: 2725 2737 SOJOURNER TRUTH CT., AND 2798 A B SACRAMENTO STREET, INSPECTOR: Signature: Name: NAPOLEON FORTE, ASA.MANAGING APPRAISER Date Signed: December 04, 2009 State Certification #: AG011918 or State License #: CERTIFIED GENERAL APPRAISER State: CA Expiration Date of Certification or License: 10/13/10 Page 2 of 2 Form DLC_DEFD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29936KF 2024,2026,2028,2030,2032,2034,2036 VIRGINIA ST City BERKELEY County ALAMEDA State CA Zip Code 94709 TABLE OF CONTENTS Invoice... 1 Opinion of Value: $1,300,000 or $185,653/Unit : 7 Unit Driveby Appraisal Form 2055... 2 Subject Photos: Front, Rear and Street... 5 Subject Photos: Additional Views... 6 Comparable Photos 1 3... 7 Location Map... 8 Subject Plat Map... 9 Description of Building and Property Improvements... 10 Surplus Land Addendum... 11 Support for Market Conditions Adjustment (Time)... 12 Berkeley Rent Control Addendum... 13 Scope of Work for this Assignment... 15 Subject Legal Description... 16 Statement of Limiting Conditions for Driveby Appraisal... 17 Form TOCPPIX "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Desktop Underwriter Quantitative Analysis Appraisal Report File No. 29936KF THIS SUMMARY APPRAISAL REPORT IS INTENDED FOR USE BY THE LENDER/CLIENT FOR A MORTGAGE FINANCE TRANSACTION ONLY. 2024,2026,2028,2030,2032,2034,2036 VIRGINIA ST City BERKELEY State CA Zip Code 94709 Legal Description SEE LEGAL DESCRIPTION AND SCOPE OF WORK ATTACHED County ALAMEDA Assessor's Parcel No. 058 2175 026 Tax Year EXEMPT R.E. Taxes $ EXEMPT Special Assessments $ Borrower Current Owner BERKELEY HOUSING AUTHORITY Occupant Owner Tenant Vacant Neighborhood or Project Name BERKELEY (7 UNIT APT BUILDING) Project Type PUD Condominium HOA $ /Mo. Sales Price $ MKT VALUE Date of Sale 11/25/2009 Description / $ amount of loan charges/concessions to be paid by seller Property rights appraised Fee Simple Leasehold Map Reference 629 G1 Census Tract 4224.00/3 Note: Race and the racial composition of the neighborhood are not appraisal factors. Location Urban Suburban Rural Property values Increasing Stable Declining Single family housing Condominium housing PRICE AGE PRICE (if applic.) AGE Built up Over 75% 25 75% Under 25% Demand/supply Shortage In balance Over supply $(000) (yrs) $(000) (yrs) Growth rate Rapid Stable Slow Marketing time Under 3 mos. 3 6 mos. Over 6 mos. 789 Low 20 NA Low NA Neighborhood boundaries SEE LOCATION MAP FOR GENERAL BOUNDARIES. NEIGHBORHOOD HAS 1,230 High 49 NA High NA HOMOGENEOUS MARKET VALUES. RADUIS OF VALUE = 0 mi to 2.2.SINGLE FAMILY PRICE Predominant Predominant RANGE HEADING = MULTI FAMILY PRICE RANGES AS FORM HAS BEEN MODIFIED. 940 34.5 Dimensions 135 FT X 100FT Site area 13,500 Shape RECTANGULAR Specific zoning classification and description R 2A RESTRICTED MULTI FAMILY RESIDENTIAL Zoning compliance 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): Present use Other use, attach description. Utilities Public Other Public Other Off site Improvements Type Public Private Electricity Water Street ASPHALT Gas Sanitary sewer Alley YEAR BUILT EST. 1989 Are there any apparent adverse site conditions (easements, encroachments, special assessments, slide areas, etc.)? Yes No If Yes, attach description. Source(s) used for physical characteristics of property: Interior and exterior inspection Exterior inspection from street Previous appraisal files MLS Assessment and tax records Prior inspection Property owner Other (Describe): LAND VALUE= 519829,PRICE/SF=$39 No. of Stories 2 Type (Det./Att.) DET Exterior Walls STUCCO Roof Surface COMPOSITION Manufactured Housing Yes No Does the property generally conform to the neighborhood in terms of style, condition and construction materials? 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. 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. SUBJECT NEIGHBORHOOD SITE IMPROVEMENTS QUANTITATIVE SALES COMPARISON ANALYSIS Certified General Appraisals(510)569 4490 www.appraisalprep.com 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 3 sales ranging in sales price from $ 1,163,750 to $ 1,225,000. My research revealed a total of 3 listings ranging in list price from $ 792,945 to $ 1,311,000. The analysis of the comparable sales below reflects market reaction to significant variations between the sales and the subject property. FEATURE SUBJECT SALE 1 SALE 2 SALE 3 2024,2026,2028,2030,2032,20 1817 7TH ST 2015 HEARST AVE 1600 TYLER STREET Address BERKELEY BERKELEY BERKELEY BERKELEY Proximity to Subject 2.20 miles 0.74 miles 2.04 miles Sales Price $ MKT VALUE $ 795,000 $ 1,225,000 $ 789,000 Price/Gross Living Area $ N/A / $ 161.03 / $ 259.26 / $ 137.22 / Data & Verification Sources MLS#40396699 MLS#40409100 MLS#40398020 VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +( )$ Adjust. DESCRIPTION +( )$ Adjust. DESCRIPTION +( )$ Adjust. Sales or Financing Concessions Date of Sale/Time Location Site View Design (Style) Actual Age (Yrs.) Condition AVERAGE 13,500 2 STO AP BLDG 20 AVERAGE BANK LOAN 264 11/17/09 INFERIOR 6750 2 STO AP BD/EQ 43 EQUAL 700 +23,850 +8,440 0 0 +2,300 BANK LOAN 114 9/2/09 EQUAL 5760 2 STO AP BD/EQ 46 EQUAL 11,300 +9,180 0 0 +2,600 BANK LOAN 252 11/13/09 INFERIOR 6750 2 STO AP BD/EQ 49 EQUAL 1,000 +23,670 +8,440 0 0 +2,900 Above Grade Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Room Count 35 24 14 24 12 6 +16,000 28 14 7 +13,500 32 11 8 +16,000 Gross Living Area 7,099 Sq. Ft. 4,937 Sq. Ft. +32,430 4,725 Sq. Ft. +35,610 5,750 Sq. Ft. +20,235 Basement & Finished Rooms Below Grade Garage/Carport STORAGE=YES SECURITY=YES 7 YES YES 6 +2,500 YES YES 0 +17,500 YES YES 5 +5,000 NO. OF UNITS 7 6 0 7 0 8 0 PRICE/UNIT $ N/A 132,500 175,000 98,630 Net Adj. (total) + $ 84,820 + $ 67,090 + $ 75,245 Adjusted Sales Price of Comparables Net Gross 10.7 % 10.8 % $ 879,820 Net Gross 5.5 7.3 % % $ 1,292,090 Net Gross 9.5 9.8 % % $ 864,245 Date of Prior Sale 9/18/96 8/25/09 9/29/06 5/24/05 Price of Prior Sale $ UNKNOWN $ 785,000 $ UNKN NO PUBLIC DATA $ UNKN NO PUBLIC DATA Analysis of any current agreement of sale, option, or listing of the subject property and analysis of the prior sales of subject and comparables: OWNERSHIP HISTORY: CITY OF BERKELEY AND NOW BERKELEY HSE AUTH. HAS OWNED THIS PROP. SINCE SEPT 18, 1973 PER ALAMEDA CO. RECORDS. Summary of sales comparison and value conclusion: MOST WEIGHT WAS GIVEN TO COMPS # 1 & #2 DUE TO UNIT COUNT, GLA, PROXIMITY, RECENT SALE, AND MOST SIMILAR FEATURES. COMP # 3 PROVIDES SUPPORT FOR THE VALUE ESTIMATE. COMPS USED WERE THE BEST CLOSED AND LISTED SALES AT TIME OF INSPECTION. ADEQUATE WEIGHT IS GIVEN TO THE ACTIVE LISTINGS AS THEY INDICATE THE HIGHEST "ASKING PRICES" IN A DECLINING MARKET. SALE #1SALE #2SALE #3 REQUIRED SURPLUS LAND ADJUSTMENTS DUE TO SITE SIZE DIFFERENCES. SEE SURPLUS LAND ADDENDUM. TYPICAL APT. BUYERS WOULD MOST LIKELY MAKE THEIR FINAL OFFER/BUY DECISION BY APPLYING A REASONABLE PRICE/UNIT COMPARISON WHICH THE DATA SHOWED AVG. P/U OF $ 135377.APPRAISER ASSIGNED A PRICE/ UNIT OF $ 185653,BASED ON CONSIDERING RELEVANT MARKET DATA. This appraisal is made "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. EXTERIOR INSPECTION REVEALED NO VISIBLE EXTERIOR DEFECTS. BASED ON AN EXTERIOR INSPECTION FROM THE STREET OR AN INTERIOR AND EXTERIOR INSPECTION, I ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THIS REPORT TO BE $ 1,300,000, AS OF 11/25/2009. PAGE 1 OF 3 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE File No. 29936KF Page #2 Fannie Mae Form 2055 9 96
File No. 29936KF Page #3 PUD Desktop Underwriter Quantitative Analysis Appraisal Report File No. 29936KF Project Information for PUDs (If applicable) Is the developer/builder in control of the Home Owners' Association (HOA)? Yes 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 NOT APPLICABLE Total number of units NOT APPLICABLE Total number of units sold NOT APPLICABLE 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? Yes No If yes, date of conversion: Does the project contain any multi dwelling units? Yes No Data Source: Are the common elements completed? Yes No If No, describe status of completion: 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: CONDOMINIUM 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 NOT APPLICABLE 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 the project, quality of construction, unit mix, etc.: Are the common elements completed? Yes No If No, describe status of completion: 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: 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 judgment. 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 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. PAGE 2 OF 3 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE Fannie Mae Form 2055 9 96
File No. 29936KF Page #4 Desktop Underwriter Quantitative Analysis Appraisal Report APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: File No. 29936KF 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 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: NAPOLEON FORTE, ASA. MANAGING APPRAISER SUPERVISORY APPRAISER (ONLY IF REQUIRED): Signature: Name: NAPOLEON FORTE, ASA.MANAGING APPRAISER Company Name: CERTIFIED GENERAL APPRAISAL SERVICES Company Address: 306 PENDLETON WAY OAKLAND, CA 94621 Date of Report/Signature: December 04, 2009 State Certification #: AG011918 or State License #: CERTIFIED GENERAL APPRAISER State: CA Expiration Date of Certification or License: 10/13/10 Signature: Name: Company Name: Company Address: Date of Report/Signature: State Certification #: or State License #: State: Expiration Date of Certification or License: ADDRESS OF PROPERTY APPRAISED: 2024,2026,2028,2030,2032,2034,2036 VIRGINIA ST BERKELEY, CA 94709 APPRAISED VALUE OF SUBJECT PROPERTY $ EFFECTIVE DATE OF APPRAISAL/INSPECTION LENDER/CLIENT: Name: Company Name: Company Address: 1300000 11/25/2009 BERKELEY HOUSING AUTHORITY MS. TIA M. INGRAM, EXECUTIVE DIRECTOR BERKELEY HOUSING AUTHORITY 1901 FAIRVIEW STREET, BERKELEY, CA 94703 SUPERVISORY APPRAISER: PAGE 3 OF 3 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 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE Fannie Mae Form 2055 9 96
Subject Photos: Front, Rear and Street 2024,2026,2028,2030,2032,2034,2036 VIRGINIA ST City BERKELEY County ALAMEDA State CA Zip Code 94709 File No. 29936KF Page #5 Subject Front 2024,2026,2028,2030,2032,2034,2036 VIRGINIA Sales Price MKT VALUE G.B.A. Age/Yr.Blt. 20 ADDITIONAL UNITS (7) (Driveby Appraisal) Subject Street Form PICPIX.SC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Subject Photos: Additional Views 2024,2026,2028,2030,2032,2034,2036 VIRGINIA ST City BERKELEY County ALAMEDA State CA Zip Code 94709 File No. 29936KF Page #6 VIEW OF SUBJECT UNITS 2024,2026,2028,2030,2032,2034,2036 VIRGINIA Sales Price MKT VALUE Gross Living Area 7,099 Total Rooms 35 Total Bedrooms 24 Total Bathrooms 14 Location AVERAGE View Site 13,500 Quality Age 20 VIEW OF SUBJECT UNITS VIEW OF SUBJECT UNITS Form PICPIX.SR "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Comparable Photos 1 3 2024,2026,2028,2030,2032,2034,2036 VIRGINIA ST City BERKELEY County ALAMEDA State CA Zip Code 94709 File No. 29936KF Page #7 1817 7TH ST Sales Price G.B.A. Age/Yr. Blt. Comparable 1 795,000 43 Comparable 2 2015 HEARST AVE Sales Price 1,225,000 G.B.A. Age/Yr. Blt. 46 Comparable 3 1600 TYLER STREET Sales Price 789,000 G.B.A. Age/Yr. Blt. 49 Form PICPIX.CC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Location Map File No. 29936KF Page #8 2024,2026,2028,2030,2032,2034,2036 VIRGINIA ST City BERKELEY County ALAMEDA State CA Zip Code 94709 Form MAP.LOC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Plat Map File No. 29936KF Page #9 2024,2026,2028,2030,2032,2034,2036 VIRGINIA ST City BERKELEY County ALAMEDA State CA Zip Code 94709 Form MAP.PLAT "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
on of Building and Property Impr File No. 29936KF Page #10 File No. 29936KF 2024,2026,2028,2030,2032,2034,2036 VIRGINIA ST City BERKELEY County ALAMEDA State CA Zip Code 94709 DESCRIPTION OF PROPERTY IMPROVEMENTS The subject building was inspected from the exterior only as this was a drive by appraisal per client's instructions. The 7,100 sq. ft. gross building is a typical walkup multifamily dwelling built around 1980 90's. Upkeep by regularly scheduled maintenance has been adequate as the building is in average condition. Exterior painting is adequate. Street visibility, access, and setbacks are adequate. The design and curb appeal is typical for the Berkeley market area. The site is located within close proximity to the University of California Berkeley campus which gives it added locational value to potential tenants. Landscaping is adequate with native plants and trees. The construction is wood frame with painted stucco siding. Driveways and parking is judged to be adequate. All utilities are connected to the site and appear to be operating properly. The roof appears to be water tight with no evidence of leaks and appears to have a remaining economic life of at least 50 60 years. No visible exterior defects or deferred maintenance were observed during my exterior inspection. The subject property should compete well for all tenant types within the Berkeley market area and beyond. It should command competitve market rents based on its present condition. The subject has the following unit breakdown per Berkeley Housing Authority: Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Surplus Land Addendum File No. 29936KF Page #11 File No. 29936KF 2024,2026,2028,2030,2032,2034,2036 VIRGINIA ST City BERKELEY County ALAMEDA State CA Zip Code 94709 SURPLUS LAND ADDENDUM ****************************************************************************************** COMPARABLES#1, #2 & #3 WERE ADJUSTED FOR SURPLUS LAND. SURPLUS LAND IS THE DIFFERENCE OF AT LEAST 25% OF ADDITIONAL SF OF ONE PROPERTY VS. ANOTHER. THE SQUARE FOOTAGE UP TO 25% IS VALUED AT $2 PER SQUARE BEYOND 25%, THE SQUARE FOOTAGE IS VALUED AT $1 PER SQUARE FOOT. THE ACTUAL SURPLUS LAND ADJUSTMENTS ARE SHOWN IN THE REPORT. THE SAMPLE BELOW EXPLAINS THIS CALCULATIONS. SURPLUS LAND CALULATION EXAMPLE **************************************************** SUBJECT SITE SIZE 5,000 SF COMP SITE SIZE 8,500 SF CALCULATE WHAT POINT IS CONSIDERED EXCESS LAND? SUBECT(SMALLEST SIZE) SURPLUS POINT 5,000 SF X1.25 6,250 SF HOW SURPLUS LAND IS VALUED? SURPLUS LAND POINT 6,250 SF ( LESS ) SUBJECT SITE 8,500 SF ACTUAL EXCESS 2,250 SF X $1/SF = $2,500 CALCULATE NORMAL LAND VALUE: SURPLUS LAND POINT 6250 SF (LESS) SUBJECT SITE 5000 SF NORMAL LAND VALUE 1250 SF X $2/SF = $2,500 TOTAL ADJUSTMENTS FOR EXCESS LAND : NORMAL LAND VALUE $2,500 SURPLUS LAND VALUE $2,250 TOTAL ADJUSTMENT $4,750 QUESTIONS AND ANSWERS: IS THIS SITE SIZE TYPICAL FOR THIS MARKET AREA? YES X NO ARE EASEMENTS ON PROPERTY S PLAT MAP? YES_X NO CAN THE EXCESS LAND BE SUBDIVIDED? YES_X NO PROBABILITY OF OWNE SUBDIVIDING? GOOD X NOT GOOD EFFECTS ONE MARKETABILITY OF THIS PROPERTY? SIGNIFICANT X NOT SIGNIFICANT Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
for Market Conditions Adjustmen File No. 29936KF Page #12 File No. 29936KF 2024,2026,2028,2030,2032,2034,2036 VIRGINIA ST City BERKELEY County ALAMEDA State CA Zip Code 94709 The market data collected by Zillow is judged to be reliable based on price change only. The market data below is for single family homes in Berkeley. However, the multifamily prices tend to lag and match the same trends as the single family market based on discussions with market participants and appraiser's own knowledge. No appraiser adjustments have been made to the Zillow price data. The data confirms what is already known by the buyers and sellers in the Berkeley market and that is prices have been in declined since late 2006. The data also show how Berkeley's residential housing trends compare with the entire US housing market. We have made a 3.5 %/year depreciation adjustment to the comparables to show market decline from the date a comp was sold to the date of inspection by the appraiser. Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Berkeley Rent Control Addendum File No. 29936KF Page #13 File No. 29936KF 2024,2026,2028,2030,2032,2034,2036 VIRGINIA ST City BERKELEY County ALAMEDA State CA Zip Code 94709 2009 2010 RENT BOARD ALLOWABLE INCREASE RENT STABILIZATION BOARD PUBLIC NOTICE 2010 ANNUAL GENERAL ADJUSTMENT ADOPTED At i t s regular meeting on October 19, 2009, the Berkeley Rent Stabilization Board adopted the Annual General Adjustment (AGA) Order for Year 2010 which will allow eligible landlords to increase the 2009 permanent rent ceilings by 0.1%. The 2010 AGA of 0.1% represents 65% of the increase in the Consumer Price Index (CPI) for All Urban Consumers in the Bay Area during the 2008 fiscal year, which was 0.266 % as posted by the Bureau of Labor Statistics in July 2009. The 65% of CPI formula was approved by the voters in the November 2004 general municipal election. The 2010 AGA may not be charged to tenants whose tenancy began on or after January 1, 2009, and who had their rents set pursuant to the Costa Hawkins Rental Housing Act. The Order also sets forth the conditions for qualifying for this rent increase and the notice that must be given to tenants in order to raise the rent. The full text of the regulation and order may be viewed in the Rent Board office at 2125 Milvia Street or at www.ci.berkeley.ca.us/rent/. If you have any questions, you may contact Jay Kelekian at 981 RENT (981 7368). Jay Kelekian Executive Director October 23, 2009 Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Berkeley Rent Control Addendum File No. 29936KF Page #14 File No. 29936KF 2024,2026,2028,2030,2032,2034,2036 VIRGINIA ST City BERKELEY County ALAMEDA State CA Zip Code 94709 1. Overview 2. Registration Requirement to register Exemptions Consequences of failing to register Guide to Berkeley's Rent Stabilization Program Rent Control & Eviction Protection (updated for January 2008) Other city of Berkeley requirements for landlords 3. Rent levels Calculating the lawful rent ceiling Rent ceiling increases Rent ceiling decreases Hearings Certification of rent ceilings 4. Subletting and replacing roommates Subletting generally Replacement tenants Chapters 1 3 Chapters 4 6 Table of Contents Partial turnovers in tenancies when a vacancy increase may be imposed 5. Security deposits state and local law State law regarding security deposits Berkeley law regarding security deposits and interest on deposits 6. Evictions Proceed with caution Eviction checklist local requirements Good cause required The eviction process Improper landlord actions Annual General Adjustments (AGA s) General calendar Home Web Policy Text Only Site Map Contact Us Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Scope of Work for this Assignmen File No. 29936KF Page #15 File No. 29936KF 2024,2026,2028,2030,2032,2034,2036 VIRGINIA ST City BERKELEY County ALAMEDA State CA Zip Code 94709 SCOPE OF WORK Certified General Appraisal Services has prepared a Drive by Summary Narrative Appraisal Report of the subject property in accordance with all applicable governmental requirements, as well as standards and requirements adopted and advanced by the Appraisal Institute and the Society of Real Estate Appraisers. The purpose of this appraisal is to estimate the "as is" market value of the subject. The function is to provide a market value opinion to the intended user, the Berkeley Housing Authority. The property was physically inspected for the street as a drive by inspection.. Land and building areas were verified, Land use controls including zoning and master planning documents were reviewed. Analysis of market conditions relevant to this property included research for comparable sales in Berkeley and adjacent cities and competitive locations. Qualitative and Quantitative analyses of sales, rental, and investment data were made which lead to the conclusions supporting the final estimate of market value. All appraisal reports will contain the following: 1. A review of the prior, current and potential uses of each site, using: a) Discussions with city, county and applicable regulatory staff b) Title searches c) Permits and land uses obtained and held by property owners d) Appropriate agency records to survey the areas surrounding the designated properties. 2. A property description and evaluation, including and confirming: a) Assessor's Parcel Number (APN) b) Legal description c) Plat map d) Ownership history e) Site description f) Description of property improvements, if any g) Neighborhood description h) Descriptions of current or pending changes in zoning i) Highest and best use of the affected property j) Description(s) of comparable site(s) used k) Comparative analysis of subject and comparable site(s) I) Description or illustration of appropriate appraisal approach(es) used* m) Price per unit of comparison analyzed n) Fee simple, leased or other operating data o) Reconciliation and final value estimates ** (Note: While Certified General Appraisal Services may expect and choose to use the three approaches typically employed Cost, Income and Comparable Sales, the Berkeley Housing Authority is primarily interested in appraised values based on the sales of comparable properties, especially in view of the below market rents that are customarily charged for Authority owned rental property.) 3. Each appraisal report must also include the appraiser's certification and statement of limiting conditions. Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Subject Legal Description File No. 29936KF Page #16 File No. 29936KF 2024,2026,2028,2030,2032,2034,2036 VIRGINIA ST City BERKELEY County ALAMEDA State CA Zip Code 94709 SUBJECT LEGAL DESCRIPTION Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29936KF Page #17 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 institutiona 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 judgment. STATEMENT OF LIMITING CONDITIONS AND CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The inspector's certification that appears in the appraisal report is subject to the following conditions: 1. The inspector 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 valued on the basis of it being under responsible ownership. 2. Any sketch provided in the appraisal report may show approximate dimensions of the improvements and is included only to assist the reader of the report in visualizing the property. The inspector has made no survey of the property. 3. The inspector 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. Any distribution of valuation between land and improvements in the report applies only under the existing program of utilization. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 5. The inspector has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous waste, 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, express or implied, regarding the condition of the property. The inspector 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. 6. The inspector 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 inspector does not assume responsibility for the accuracy of such items that were furnished by other parties. 7. The inspector will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 8. The inspector has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 9. The inspector 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 inspector's identity and professional designations, and references to any professional appraisal organizations or the firm with which the inspector 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 property description section of the report only to data collection or reporting service(s) without having to obtain the inspector's prior written consent. The inspector'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. 10. The inspector is not an employee of the company or individual(s) ordering this report and compensation is not contingent upon the reporting of a predetermined value or direction of value or upon an action or event resulting form the analysis, opinions, conclusions, or the use of this report. This assignment is not based on a required minimum, specific valuation, or the approval of a loan. Page 1 of 2 Certified General Appraisals(510)569 4490 www.appraisalprep.com Form DLC_DEFD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29936KF Page #18 CERTIFICATION: The inspector certifies and agrees that: 1. 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. 2. I have no present or prospective interest in the property that is the subject to 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, 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. 3. 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 analysis is contingent on the appraised value of the property. 4. I performed this analysis in conformity with 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 this appraisal. 5. I have personally inspected the exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. To the best of my knowledge and belief, all statements and information in this report are true and correct, and I have not knowingly withheld any significant information. 6. I personally prepared all conclusions and opinions about the real estate that were set forth in the inspection. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. ADDRESS OF PROPERTY ANALYZED: 2024,2026,2028,2030,2032,2034,2036 VIRGINIA ST, BERKELEY, CA 94709 INSPECTOR: Signature: Name: NAPOLEON FORTE, ASA.MANAGING APPRAISER Date Signed: December 04, 2009 State Certification #: AG011918 or State License #: CERTIFIED GENERAL APPRAISER State: CA Expiration Date of Certification or License: 10/13/10 Page 2 of 2 Form DLC_DEFD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
File No. 29935RB/RB 1903 1927 WARD STREET City BERKELEY County ALAMEDA State CA Zip Code 94703 TABLE OF CONTENTS Invoice... 1 Opinion of Value: $ 1,420,000 or $118,333/Unit : Driveby Appraisal Form 2055... 2 Description of Building and Property Improvements... 5 Subject Photos: Front, Rear and Street... 6 Comparable Photos 1 3... 7 Location Map... 8 Plat Map... 9 Surplus Land Addendum... 10 Support for Market Conditions Adjustment (Time)... 11 Berkeley Rent Control Addendum... 12 Scope of Work for this Assignment... 14 Subject Legal Description... 15 Statement of Limiting Conditions for Driveby Appraisal... 16 Form TOCPPIX "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Desktop Underwriter Quantitative Analysis Appraisal Report File No. 29935RB/RB THIS SUMMARY APPRAISAL REPORT IS INTENDED FOR USE BY THE LENDER/CLIENT FOR A MORTGAGE FINANCE TRANSACTION ONLY. 1903 1927 WARD STREET City BERKELEY State CA Zip Code 94703 Legal Description SEE LEGAL DESCRIPTION AND SCOPE OF WORK ATTACHED County ALAMEDA Assessor's Parcel No. 054 1724 004 Tax Year 09 10 R.E. Taxes $ EXEMPT PUBSpecial Assessments $ Borrower Current Owner BERKELEY UNIFIED SCHOOL DIST Occupant Owner Tenant Vacant Neighborhood or Project Name BERKELEY (12 UNIT APT BUILDING) Project Type PUD Condominium HOA $ /Mo. Sales Price $ MKT VALUE Date of Sale 11/25/2009 Description / $ amount of loan charges/concessions to be paid by seller Property rights appraised Fee Simple Leasehold Map Reference 629 G3 Census Tract 4235.00/2 Note: Race and the racial composition of the neighborhood are not appraisal factors. Location Urban Suburban Rural Property values Increasing Stable Declining Single family housing Condominium housing PRICE AGE PRICE (if applic.) AGE Built up Over 75% 25 75% Under 25% Demand/supply Shortage In balance Over supply $(000) (yrs) $(000) (yrs) Growth rate Rapid Stable Slow Marketing time Under 3 mos. 3 6 mos. Over 6 mos. 1,390.5Low 49 NA Low NA Neighborhood boundaries SEE LOCATION MAP FOR GENERAL BOUNDARIES. NEIGHBORHOOD HAS 1,570 High 66 NA High NA HOMOGENEOUS MARKET VALUES. RADUIS OF VALUE = 0 mi to 1.4.SINGLE FAMILY PRICE Predominant Predominant RANGE HEADING = MULTI FAMILY PRICE RANGES AS FORM HAS BEEN MODIFIED. 1,470 57.5 Dimensions 75 FT X 218 FT Site area 16,350 Shape RECTANGULAR Specific zoning classification and description R 2 RESTRICTED TWO FAMILY RESIDENTIAL SEE GR LEASE DISCUSSION IN IMP. DESCRIP Zoning compliance 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): Present use Other use, attach description. Utilities Public Other Public Other Off site Improvements Type Public Private Electricity Water Street ASPHALT Gas Sanitary sewer Alley YEAR BUILT EST. 1960 Are there any apparent adverse site conditions (easements, encroachments, special assessments, slide areas, etc.)? Yes No If Yes, attach description. Source(s) used for physical characteristics of property: Interior and exterior inspection Exterior inspection from street Previous appraisal files MLS Assessment and tax records Prior inspection Property owner Other (Describe): LAND VALUE= 568002,PRICE/SF=$35 No. of Stories 2 Type (Det./Att.) ATT Exterior Walls STUCCO Roof Surface COMPOSITION Manufactured Housing Yes No Does the property generally conform to the neighborhood in terms of style, condition and construction materials? 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. 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. SUBJECT NEIGHBORHOOD SITE IMPROVEMENTS QUANTITATIVE SALES COMPARISON ANALYSIS Certified General Appraisals(510)569 4490 www.appraisalprep.com 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 3 sales ranging in sales price from $ 1,487,000 to $ 1,565,000. My research revealed a total of 3 listings ranging in list price from $ 1,397,000 to $ 1,581,000. The analysis of the comparable sales below reflects market reaction to significant variations between the sales and the subject property. FEATURE SUBJECT SALE 1 SALE 2 SALE 3 1903 1927 WARD STREET 968 ADDISON STREET 3380 ADELINE STREET 2112 ROOSEVELT AVE Address BERKELEY BERKELEY BERKELEY BERKELEY Proximity to Subject 1.40 miles 0.83 miles 0.79 miles Sales Price $ MKT VALUE $ 1,565,000 $ 1,390,500 $ 1,450,000 Price/Gross Living Area $ N/A / $ 134.08 / $ 147.80 / $ 185.90 / Data & Verification Sources DEED DOC #2009 28214 DEED DOC # 2009 224153 MLS#40432270 VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +( )$ Adjust. DESCRIPTION +( )$ Adjust. DESCRIPTION +( )$ Adjust. Sales or Financing Concessions Date of Sale/Time Location Site View AVERAGE 16,350 BANK LOAN 180 1/30/09 EQUAL 20000 51,300 14,600 0 BANK LOAN 560 7/17/09 EQUAL 10,300 20,000 +8,630 0 BANK LOAN 19 11/17/09 EQUAL 7,800 1,300 +10,500 0 Design (Style) Actual Age (Yrs.) Condition 2 STO AP BLDG 49 AVERAGE 2 STO AP BD/EQ 66 EQUAL 0 +1,700 2 STO AP BD/EQ 0 52 EQUAL 2 STO AP BD/EQ 49 EQUAL 0 Above Grade Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Room Count 66 42 24 56 20 18 +25,000 56 28 14 +19,000 40 20 11 +28,500 Gross Living Area 13,690 Sq. Ft. 11,672 Sq. Ft. +30,270 9,408 Sq. Ft. +64,230 7,800 Sq. Ft. +88,350 Basement & Finished Rooms Below Grade Garage/Carport STORAGE=YES SECURITY=YES 12 YES YES 18 15,000 YES YES 16 10,000 YES YES 10 +5,000 NO. OF UNITS 12 18 0 14 0 10 0 PRICE/UNIT $ N/A 86,940 99,320 145,000 Net Adj. (total) + $ 23,930 + $ 61,860 + $ 131,050 Adjusted Sales Price of Comparables Net 1.5 Gross 8.8 % % $ 1,541,070 Net 4.4 Gross 8.8 % % $ 1,452,360 Net 9.0 Gross 9.2 % % $ 1,581,050 Date of Prior Sale 2/29/1968 UNK 06/2/2005 11/06/2007 Price of Prior Sale $ 99 YR LEASE $ NO PRIOR SALE ON RECORD $ 1,850,000 $ INTERSPOUSAL DEED Analysis of any current agreement of sale, option, or listing of the subject property and analysis of the prior sales of subject and comparables: OWNERSHIP HISTORY: BERKELEY UNIFIED SCHOOL DISTRICT HAS OWNED THIS PROPERTY SINCE MARCH 1, 1986 PER ALAMEDA CO. RECORDS. Summary of sales comparison and value conclusion: MOST WEIGHT WAS GIVEN TO COMPS # 1 & #2 DUE TO UNIT COUNT, GLA, PROXIMITY, RECENT SALE, AND MOST SIMILAR FEATURES. COMP # 3 PROVIDES SUPPORT FOR THE VALUE ESTIMATE. COMPS USED WERE THE BEST CLOSED AND LISTED SALES AT TIME OF INSPECTION. ADEQUATE WEIGHT IS GIVEN TO THE ACTIVE LISTINGS AS THEY INDICATE THE HIGHEST "ASKING PRICES" IN A DECLINING MARKET. SALE #2SALE #3 REQUIRED SURPLUS LAND ADJUSTMENTS DUE TO SITE SIZE DIFFERENCES. SEE SURPLUS LAND ADDENDUM. TYPICAL APT. BUYERS WOULD MOST LIKELY MAKE THEIR FINAL OFFER/BUY DECISION BY APPLYING A REASONABLE PRICE/UNIT COMPARISON WHICH THE DATA SHOWED AVG. P/U OF $ 110420. APPRAISER ASSIGNED A PRICE/ UNIT OF $ 118334 BASED ON CONSIDERING RELEVANT MARKET DATA. This appraisal is made "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. EXTERIOR INSPECTION REVEALED NO VISIBLE EXTERIOR DEFECTS. BASED ON AN EXTERIOR INSPECTION FROM THE STREET OR AN INTERIOR AND EXTERIOR INSPECTION, I ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THIS REPORT TO BE $ 1,420,000, AS OF 11/25/2009. PAGE 1 OF 3 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE File No. 29935RB/RB Page #2 Fannie Mae Form 2055 9 96
File No. 29935RB/RB Page #3 PUD Desktop Underwriter Quantitative Analysis Appraisal Report File No. 29935RB/RB Project Information for PUDs (If applicable) Is the developer/builder in control of the Home Owners' Association (HOA)? Yes 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 NOT APPLICABLE Total number of units NOT APPLICABLE Total number of units sold NOT APPLICABLE 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? Yes No If yes, date of conversion: Does the project contain any multi dwelling units? Yes No Data Source: Are the common elements completed? Yes No If No, describe status of completion: 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: CONDOMINIUM 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 NOT APPLICABLE 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 the project, quality of construction, unit mix, etc.: Are the common elements completed? Yes No If No, describe status of completion: 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: 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 judgment. 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 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. PAGE 2 OF 3 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE Fannie Mae Form 2055 9 96
File No. 29935RB/RB Page #4 Desktop Underwriter Quantitative Analysis Appraisal Report APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: File No. 29935RB/RB 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 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: NAPOLEON FORTE, ASA. MANAGING APPRAISER SUPERVISORY APPRAISER (ONLY IF REQUIRED): Signature: Name: NAPOLEON FORTE, ASA.MANAGING APPRAISER Company Name: CERTIFIED GENERAL APPRAISAL SERVICES Company Address: 306 PENDLETON WAY OAKLAND, CA 94621 Date of Report/Signature: December 03, 2009 State Certification #: AG011918 or State License #: CERTIFIED GENERAL APPRAISER State: CA Expiration Date of Certification or License: 10/13/10 Signature: Name: Company Name: Company Address: Date of Report/Signature: State Certification #: or State License #: State: Expiration Date of Certification or License: ADDRESS OF PROPERTY APPRAISED: 1903 1927 WARD STREET BERKELEY, CA 94703 APPRAISED VALUE OF SUBJECT PROPERTY $ EFFECTIVE DATE OF APPRAISAL/INSPECTION LENDER/CLIENT: Name: Company Name: Company Address: 1420000 11/25/2009 MS. TIA M. INGRAM, EXECUTIVE DIRECTOR BERKELEY HOUSING AUTHORITY 1901 FAIRVIEW STREET, BERKELEY, CA 94703 SUPERVISORY APPRAISER: PAGE 3 OF 3 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 Form 205 "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE Fannie Mae Form 2055 9 96
on of Building and Property Impr File No. 29935RB/RB Page #5 File No. 29935RB/RB 1903 1927 WARD STREET City BERKELEY County ALAMEDA State CA Zip Code 94703 DESCRIPTION OF PROPERTY IMPROVEMENTS The subject building was inspected from the exterior only as this was a drive by appraisal per client's instructions. The 13,690 sq. ft. gross building is a typical walkup multifamily dwelling built around 1960 70's. Upkeep by regularly scheduled maintenance has been adequate as the building is in average condition. Exterior painting is adequate. Street visibility, access, and setbacks are adequate. The design and curb appeal is typical for the Berkeley market area. The site is located within close proximity to the University of California Berkeley campus which gives it added locational value to potential tenants. Landscaping is adequate with native plants and trees. The construction is wood frame with painted stucco siding. Driveways and parking is judged to be adequate. All utilities are connected to the site and appear to be operating properly. The roof appears to be water tight with no evidence of leaks and appears to have a remaining economic life of at least 25 30 years. No visible exterior defects or deferred maintenance were observed during my exterior inspection. The subject property should compete well for all tenant types within the Berkeley market area and beyond. It should command competitve market rents based on its present condition. Ownership History The subject property is under a 99 year ground lease to the Berkeley Housing Authority (BHA) from the Berkeley Unified School District (BUSD). This appraisal derived the market value of the subject property based on a unencumber "Fee Simple" interest and not on the "Leasehold" interest. Because a current sale of the leasehold interest would carry with it the existing lease and since the lease is for a term of 99 years with 76 years remaining (lease began 1986), and at the end of the lease reversion of buildings and improvements go back to the Berkeley Unified School District, a Fee Simple interest value would be the most probable selling price set by the BHA and around that same value would be the most likely price a potential buyer would be willing to pay for the right to own the leasehold interest in the property. The present value of the ground lease is minor compared to the value of the present value of the buildings with their earnings potential over time. And there are 76 years left on the ground lease. Therefore, it would makes sense for the lessee to sell its interest based on the full value of the building and land due to the long term nature of the existing ground lease. There were an adequate number of multi family sales to establish the present market value of the subject property based solely on the sales comparison method. Traditionally, the income method is employed. However, due to the number of verifiable multi family sales, the value produced by the sales comparison method is judged to be accurate, reliable and credible. The subject has the following unit breakdown per Berkeley Housing Authority: Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Subject Photos: Front, Rear and Street 1903 1927 WARD STREET City BERKELEY County ALAMEDA State CA Zip Code 94703 File No. 29935RB/RB Page #6 Subject Front 1903 1927 WARD STREET Sales Price MKT VALUE G.B.A. Age/Yr.Blt. 49 Subject Rear View (Driveby Appraisal) Subject Street Form PICPIX.SC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Comparable Photos 1 3 1903 1927 WARD STREET City BERKELEY County ALAMEDA State CA Zip Code 94703 File No. 29935RB/RB Page #7 Comparable 1 968 ADDISON STREET Sales Price 1,565,000 G.B.A. Age/Yr. Blt. 66 Comparable 2 3380 ADELINE STREET Sales Price 1,390,500 G.B.A. Age/Yr. Blt. 52 Comparable 3 2112 ROOSEVELT AVE Sales Price 1,450,000 G.B.A. Age/Yr. Blt. 49 Form PICPIX.CC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Location Map File No. 29935RB/RB Page #8 1903 1927 WARD STREET City BERKELEY County ALAMEDA State CA Zip Code 94703 Form MAP.LOC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Location Map File No. 29935RB/RB Page #9 1903 1927 WARD STREET City BERKELEY County ALAMEDA State CA Zip Code 94703 Form MAP.LOC "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Surplus Land Addendum File No. 29935RB/RB Page #10 File No. 29935RB/RB 1903 1927 WARD STREET City BERKELEY County ALAMEDA State CA Zip Code 94703 SURPLUS LAND ADDENDUM ****************************************************************************************** COMPARABLES #2 & #3 WERE ADJUSTED FOR SURPLUS LAND. SURPLUS LAND IS THE DIFFERENCE OF AT LEAST 25% OF ADDITIONAL SF OF ONE PROPERTY VS. ANOTHER. THE SQUARE FOOTAGE UP TO 25% IS VALUED AT $2 PER SQUARE BEYOND 25%, THE SQUARE FOOTAGE IS VALUED AT $1 PER SQUARE FOOT. THE ACTUAL SURPLUS LAND ADJUSTMENTS ARE SHOWN IN THE REPORT. THE SAMPLE BELOW EXPLAINS THIS CALCULATIONS. SURPLUS LAND CALULATION EXAMPLE **************************************************** SUBJECT SITE SIZE 5,000 SF COMP SITE SIZE 8,500 SF CALCULATE WHAT POINT IS CONSIDERED EXCESS LAND? SUBECT(SMALLEST SIZE) SURPLUS POINT 5,000 SF X1.25 6,250 SF HOW SURPLUS LAND IS VALUED? SURPLUS LAND POINT 6,250 SF ( LESS ) SUBJECT SITE 8,500 SF ACTUAL EXCESS 2,250 SF X $1/SF = $2,500 CALCULATE NORMAL LAND VALUE: SURPLUS LAND POINT 6250 SF (LESS) SUBJECT SITE 5000 SF NORMAL LAND VALUE 1250 SF X $2/SF = $2,500 TOTAL ADJUSTMENTS FOR EXCESS LAND : NORMAL LAND VALUE $2,500 SURPLUS LAND VALUE $2,250 TOTAL ADJUSTMENT $4,750 QUESTIONS AND ANSWERS: IS THIS SITE SIZE TYPICAL FOR THIS MARKET AREA? YES X NO ARE EASEMENTS ON PROPERTY S PLAT MAP? YES_X NO CAN THE EXCESS LAND BE SUBDIVIDED? YES_X NO PROBABILITY OF OWNE SUBDIVIDING? GOOD X NOT GOOD EFFECTS ONE MARKETABILITY OF THIS PROPERTY? SIGNIFICANT X NOT SIGNIFICANT Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
for Market Conditions Adjustmen File No. 29935RB/RB Page #11 File No. 29935RB/RB 1903 1927 WARD STREET City BERKELEY County ALAMEDA State CA Zip Code 94703 The market data collected by Zillow is judged to be reliable based on price change only. The market data below is for single family homes in Berkeley. However, the multifamily prices tend to lag and match the same trends as the single family market based on discussions with market participants and appraiser's own knowledge. No appraiser adjustments have been made to the Zillow price data. The data confirms what is already known by the buyers and sellers in the Berkeley market and that is prices have been in declined since late 2006. The data also show how Berkeley's residential housing trends compare with the entire US housing market. We have made a 3.5 %/year depreciation adjustment to the comparables to show market decline from the date a comp was sold to the date of inspection by the appraiser. Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Berkeley Rent Control Addendum File No. 29935RB/RB Page #12 File No. 29935RB/RB 1903 1927 WARD STREET City BERKELEY County ALAMEDA State CA Zip Code 94703 2009 2010 RENT BOARD ALLOWABLE INCREASE RENT STABILIZATION BOARD PUBLIC NOTICE 2010 ANNUAL GENERAL ADJUSTMENT ADOPTED At i t s regular meeting on October 19, 2009, the Berkeley Rent Stabilization Board adopted the Annual General Adjustment (AGA) Order for Year 2010 which will allow eligible landlords to increase the 2009 permanent rent ceilings by 0.1%. The 2010 AGA of 0.1% represents 65% of the increase in the Consumer Price Index (CPI) for All Urban Consumers in the Bay Area during the 2008 fiscal year, which was 0.266 % as posted by the Bureau of Labor Statistics in July 2009. The 65% of CPI formula was approved by the voters in the November 2004 general municipal election. The 2010 AGA may not be charged to tenants whose tenancy began on or after January 1, 2009, and who had their rents set pursuant to the Costa Hawkins Rental Housing Act. The Order also sets forth the conditions for qualifying for this rent increase and the notice that must be given to tenants in order to raise the rent. The full text of the regulation and order may be viewed in the Rent Board office at 2125 Milvia Street or at www.ci.berkeley.ca.us/rent/. If you have any questions, you may contact Jay Kelekian at 981 RENT (981 7368). Jay Kelekian Executive Director October 23, 2009 Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Berkeley Rent Control Addendum File No. 29935RB/RB Page #13 File No. 29935RB/RB 1903 1927 WARD STREET City BERKELEY County ALAMEDA State CA Zip Code 94703 1. Overview 2. Registration Requirement to register Exemptions Consequences of failing to register Guide to Berkeley's Rent Stabilization Program Rent Control & Eviction Protection (updated for January 2008) Other city of Berkeley requirements for landlords 3. Rent levels Calculating the lawful rent ceiling Rent ceiling increases Rent ceiling decreases Hearings Certification of rent ceilings 4. Subletting and replacing roommates Subletting generally Replacement tenants Chapters 1 3 Chapters 4 6 Table of Contents Partial turnovers in tenancies when a vacancy increase may be imposed 5. Security deposits state and local law State law regarding security deposits Berkeley law regarding security deposits and interest on deposits 6. Evictions Proceed with caution Eviction checklist local requirements Good cause required The eviction process Improper landlord actions Annual General Adjustments (AGA s) General calendar Home Web Policy Text Only Site Map Contact Us Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Scope of Work for this Assignmen File No. 29935RB/RB Page #14 File No. 29935RB/RB 1903 1927 WARD STREET City BERKELEY County ALAMEDA State CA Zip Code 94703 SCOPE OF WORK Certified General Appraisal Services has prepared a Drive by Summary Narrative Appraisal Report of the subject property in accordance with all applicable governmental requirements, as well as standards and requirements adopted and advanced by the Appraisal Institute and the Society of Real Estate Appraisers. The purpose of this appraisal is to estimate the "as is" market value of the subject. The function is to provide a market value opinion to the intended user, the Berkeley Housing Authority. The property was physically inspected for the street as a drive by inspection.. Land and building areas were verified, Land use controls including zoning and master planning documents were reviewed. Analysis of market conditions relevant to this property included research for comparable sales in Berkeley and adjacent cities and competitive locations. Qualitative and Quantitative analyses of sales, rental, and investment data were made which lead to the conclusions supporting the final estimate of market value. All appraisal reports will contain the following: 1. A review of the prior, current and potential uses of each site, using: a) Discussions with city, county and applicable regulatory staff b) Title searches c) Permits and land uses obtained and held by property owners d) Appropriate agency records to survey the areas surrounding the designated properties. 2. A property description and evaluation, including and confirming: a) Assessor's Parcel Number (APN) b) Legal description c) Plat map d) Ownership history e) Site description f) Description of property improvements, if any g) Neighborhood description h) Descriptions of current or pending changes in zoning i) Highest and best use of the affected property j) Description(s) of comparable site(s) used k) Comparative analysis of subject and comparable site(s) I) Description or illustration of appropriate appraisal approach(es) used* m) Price per unit of comparison analyzed n) Fee simple, leased or other operating data o) Reconciliation and final value estimates ** (Note: While Certified General Appraisal Services may expect and choose to use the three approaches typically employed Cost, Income and Comparable Sales, the Berkeley Housing Authority is primarily interested in appraised values based on the sales of comparable properties, especially in view of the below market rents that are customarily charged for Authority owned rental property.) 3. Each appraisal report must also include the appraiser's certification and statement of limiting conditions. Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE
Subject Legal Description File No. 29935RB/RB Page #15 File No. 29935RB/RB 1903 1927 WARD STREET City BERKELEY County ALAMEDA State CA Zip Code 94703 SUBJECT LEGAL DESCRIPTION Form TADD "TOTAL for Windows" appraisal software by a la mode, inc. 1 800 ALAMODE