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HomeMy WebLinkAboutAgreement A-24-022 Certification and Indemnification Agreement.pdf Agreement No. 24-022 Certification Regarding Non-Application of Relocation Benefits and Indemnification Agreement The Villages at Paragon (FKA Plaza Terrace) Certification Regarding Non-Application of Relocation Benefits This document is used by the Sponsor(s) of a housing project to show and certify that no relocation plan was necessary for the project. The certification is regarding a certain project known as The Villages at Paragon (FKA Plaza Terrace) on real property located at 4041 Plaza Drive West, Fresno, CA 93702, and described in Exhibit A attached hereto (the "Project"). This Certification is made by Housing Authority of the City of Fresno, California, a public body, corporate and politic, and County of Fresno, a political subdivision of the State of California (collectively the "Sponsor"), for the benefit of the Department of Housing and Community Development, a public agency of the State of California, its successors and assigns (the "Department"), and is dated as of September 25, 2023, for reference purposes. The Sponsor, through its organizational structure, controls The Villages at Paragon, LP, a California limited partnership (the "Borrower"), which owns the aforementioned Project. In conducting its due diligence, the Department requested that the Sponsor provide any and all information relating to potential project relocation issues, under applicable relocation law, as defined herein. In response, Sponsor provided the Department the following information and documents supporting its position that a relocation plan is not required pursuant to relocation law. The documents listed below are incorporated by reference as Exhibit B: 1. Letter from the Sponsor dated September 13, 2023. • "Please accept this letter as formal certification from the Housing Authority of the City of Freson, CA that the Villages at Paragon (FKA Plaza Terrace) was currently vacant from any tenants at the time of closing. No relocation occurred or was planned at any time." 2. Appraisal prepared by James G. Palmer Appraisals, Inc., dated January 24, 2018. • "The project is an older residential development that was constructed in the 1970's. It is in average condition. A public agency owns the property. It is currently vacant and being planned for renovation and reconfiguration." (Page 3 of the Report) Page 1 of 8 Template Date: October 18, 2022 Date: September 25, 2023, Revised 10/30/2023 & 12/14/2023 - Signature Block Project: The Villages at Paragon (FKA Plaza Terrace) Address: 4041 Plaza Drive West, Fresno, CA 93702 HCD Program Awards: 18-NPLH-12658 Type of Construction: Vacant Building • "The project consists of a vacant multifamily housing development. Based on the current condition of the project as well as its age and amenities, a basic rental rate of $700/month has been concluded after reviewing comparable properties in the area. An additional $15 ger unit is added for laundry income. (Page 5 of the Report) 3. Letter from Baker Manock & Jenson, PC law office on behalf of the Sponsor to the Department dated January 25, 2019. • "This firm serves as legal counsel for the Housing Authority of the City of Fresno ("Housing Authority"), which intends to develop and rehabilitate 28 living units in an existing complex in the City of Fresno, which will also feature community and office spaces (hereinafter, the "Project"). The Project will consist of replacement and/or repairing of floors, windows, paint, appliances, and HVAC systems. The Project will be located on what is now an approximately .75- acre lot located at 4041 Plaza Drive West, Fresno, California 93702." The Project is 28 unit Acquisition/Rehabilitation project with 25 one-bedroom and one two- bedroom units serving households with incomes ranging from 20 - 60 percent of Area Median Income (AMI), and 1 one-bedroom manager's unit. Of the total units, 12 one- bedroom and one two-bedroom units will be reserved for NPLH qualified households with AMI's from 20 percent to 30 percent AMI. Each unit will have air conditioning, range, disposal, dishwasher, walk-in closet curtains/blinds, and storage area. On-site amenities include laundry rooms, a community room, a community kitchen and picnic/ BBQ area. Off- site amenities, located within two miles of the project include public transportation, schools, grocery stores, recreational parks, medical services, employment and banking. The Sponsor was awarded $3,616,466.00 No Place Like Home (NPLH) Program funds. All Department funding, including but not limited to those funds that are described above and any and all other HCD funding (loans or grants) that may not have been awarded or identified at the time of the execution of this document is collectively referred to as "Department Funding." The Sponsor fully warrants and represents, as detailed here, that the Project is not subject to Relocation Law as described below. Sponsor acknowledges the following: Relocation as a body of law is detailed under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 ("Federal Relocation Law"); California Government Code 7260 et seq, and the Relocation Regulations (Title 25 of the California Page 2 of 8 Template Date: October 18, 2022 Date: September 25, 2023, Revised 10/30/2023 & 12/14/2023-Signature Block Project: The Villages at Paragon (FKA Plaza Terrace) Address: 4041 Plaza Drive West, Fresno, CA 93702 HCD Program Awards: 18-NPLH-12658 Type of Construction: Vacant Building Code of Regulations Section 6000 et seq) ("State Relocation Law"). Collectively "Federal Relocation Law"and "State Relocation Law"are referred to hereinafter as "Relocation Law". Sponsor acknowledges that Federal and State Relocation Assistance laws provide uniform, fair and equitable treatment for persons whose real property is acquired or who are displaced as a result of government or government-assisted programs or projects. Tenant occupants who are displaced as a result of the acquisition may be eligible for all applicable relocation benefits. A tenant-occupant who moves as a result of a voluntary acquisition for a government-assisted project may be eligible for relocation assistance as a displaced person. Such displaced persons may include not only current lawful occupants, but also former tenants required to move for any reason other than an eviction for cause in accordance with applicable Relocation Law. Sponsor has not used the services of a recognized relocation specialist in determining that relocation assistance is not applicable. Representations The Sponsor has represented to the Department the following: (a) that the new construction of the Project will not result in temporary or permanent relocation of any tenant or owner-occupant; (b) the Project construction work will be done on a vacant building and therefore no relocation will be required. The Sponsor has also represented to the Department the following: (a) the vacant land was not intentionally created to be vacant so as to circumvent relocation law; (b) there was no owner-occupant or tenant or mobile home or business (which at minimum includes a parking business, billboards and other forms of outdoor advertising displays) or, farm previously on the vacant land; (c) no person or entity was required to move personal property from vacant land; (d) no advertising signs were lost in creation of the vacant land and (e)there was no `displaced person' pursuant to Government Code 7260(b), (c) and (d); whereby a "displaced person" is a person who is entitled to relocation assistance when he or she must move from real property, or move personal property from real property, as a direct result of a notice of intent to acquire, or acquisition of real property for a program or project by a public entity, or acquisition by any person having an agreement with or acting on behalf of a public entity; (f) no prior lease (on the vacant land) was intentionally not renewed to create the vacant land; (g) no person's property was acquired in connection with a state or federally funded project; and (h) no person's property was displaced in connection with a state or federally funded project. The Sponsor fully warrants and represents, and the Department relies upon Sponsor's representation as detailed herein, that the Project is not subject to Relocation Law. This Page 3 of 8 Template Date: October 18, 2022 Date: September 25, 2023, Revised 10/30/2023 & 12/14/2023-Signature Block Project: The Villages at Paragon (FKA Plaza Terrace) Address: 4041 Plaza Drive West, Fresno, CA 93702 HCD Program Awards: 18-NPLH-12658 Type of Construction: Vacant Building Certification Regarding Non-Application of Relocation Benefits and Indemnification Agreement encumbers all Department Funding. Certification Sponsor certifies the vacant land contains only an empty building which was not vacated for the Project (i.e. previous tenants were not displaced for the Project). Sponsor certifies no previous occupants were displaced from their homes, businesses, or farms for the Department's Project as a result or an owner refusing to renew a lease, i.e. the property was not vacated for the Project. Sponsor certifies that as a result of construction of the Project, no housing, business nor farm will be affected, no personal property was required to be moved, and no households will have to be displaced. The undersigned, the Sponsor, do hereby certify as follows: 1. The foregoing is true and correct; 2. The Sponsor is duly authorized to execute, in its name, all documents and certifications required by the Department in order for it to carry out any construction of the Project and Sponsor will comply with Relocation Law requirements; 3. That the Department would not approve the construction of the Development without this certification; and 4. It is understood that if relocation benefits are found to be applicable then the Sponsor shall prepare a relocation plan and shall be solely responsible for providing the assistance and benefits as applicable and required under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (California Government Code 7260 et seq), and the Relocation Guidelines (Title 25 of the California Code of Regulations Section 6000 et seq); and Sponsor shall indemnify and hold harmless the Department from any liabilities or claims for relocation-related costs; (see below Indemnity Agreement.). Page 4 of 8 Template Date: October 18, 2022 Date: September 25, 2023, Revised 10/30/2023 & 12/14/2023-Signature Block Project: The Villages at Paragon (FKA Plaza Terrace) Address: 4041 Plaza Drive West, Fresno, CA 93702 HCD Program Awards: 18-NPLH-12658 Type of Construction: Vacant Building I certify under penalty of perjury under the laws of the State of California that the foregoing is true and correct. SPONSOR: Housing Authority of the City of Fresno, a California public body, corporate and politic By: / " � Date: /Z �/�Zz3 Michael Duarte Chief Real Estate Officer AND County of Fresno, a California Govemment County By. Nathan Magsig Date: Chairman of the Board of Supervisors of Fresno County ATTEST: BERNICE E.SEIDEL Clerk of the Board of Supervisors County of Fresno,State of California ByA��� J � Deputy [Remainder of the page left blank. Indemnification Agreement follows on the next page of this Certification]. Page 5 of 8 Template Date: October 18, 2022 Date: September 25, 2023, Revised 10/30/2023 & 12/14/2023-Signature Block Project: The Villages at Paragon (FKA Plaza Terrace) Address: 4041 Plaza Drive West, Fresno, CA 93702 HCD Program Awards: 18-NPLH-12658 Type of Construction:Vacant Building Indemnification Agreement The purpose of the Indemnification Agreement is to allow the Department to be held harmless in connection with any and all potential legal costs and liabilities in conjunction with accepting certification from the Sponsor that permanent or temporary relocation was not necessary under Relocation Law. As part of the construction of the Project, on agrees to defend, indemnify, release and hold harmless the Department, its agents, officers, attorneys, employees, committees, successors and assignees from any and all claims, liabilities, damages, losses, attorney fees, expenses, costs, actions, or proceedings threatened, asserted, or brought against any of the foregoing individuals or entities related to or arising from Relocation Law with respect to the Project. This indemnification shall include, but not be limited to, all damages, liabilities, claims, costs, expenses, attorney fees or expert witness fees that may be asserted by any person or entity, including the Sponsor, except loss or liability suffered by the Department caused solely by the Department's sole negligence or willful misconduct. If, for any reason any portion of this Indemnification Agreement is held to be void or unenforceable by a court of competent jurisdiction, the remainder of the agreement shall remain in full force and effect. The obligations of the Sponsor under this Indemnification Agreement shall be absolute and unconditional and shall survive the construction of the Project and all Department funding. NOTE: The purpose of the Indemnification Agreement is to allow the Department to be held harmless in connection with any and all potential legal costs and liabilities in conjunction with accepting certification from Sponsor that no relocation plan was necessary. SPONSOR: Housing Authority of the City of Fresno, California, a California public body, corporate and politic el By: %� Date: fz,/i'9 Z 3 Y _ _ Michael Duarte Chief Real Estate Officer AND County of Fresno, a California Government County By: Date: 119/Z 4 Nathan Magsig ATTEST: Chairman of the Board of Supervisors BERNICE E.SEIDEL of Fresno County Clerk of the Board of Supervisors County of Fresno,State of California Page 6 of 8 ByJ"r,*a ILL Deputy Template Date: October 18, 2022 Date: September 25, 2023, Revised 10/30/2023& 12/14/2023-Signature Block Project: The Villages at Paragon (FKA Plaza Terrace) Address:4041 Plaza Drive West, Fresno, CA 93702 HCD Program Awards: 18-NPLH-12658 Type of Construction: Vacant Building Exhibit A Legal Description of the Property The land described herein is situated in the State of California, County of Fresno, City of Fresno, described as follows: Lots 120 through 128, inclusive of Belmont Center, according to the Map thereof recorded in Book 13 Pages 11 and 12 of Plats, Records of said County. APN: 454-295-09-T Page 7 of 8 Template Date: October 18, 2022 Date: September 25, 2023, Revised 10/30/2023 & 12/14/2023-Signature Block Project: The Villages at Paragon (FKA Plaza Terrace) Address: 4041 Plaza Drive West, Fresno, CA 93702 HCD Program Awards: 18-NPLH-12658 Type of Construction: Vacant Building Exhibit B Consists of the following documents: 1. Letter from the Sponsor dated September 13, 2023. • "Please accept this letter as formal certification from the Housing Authority of the City of Freson, CA that the Villages at Paragon (FKA Plaza Terrace) was currently vacant from any tenants at the time of closing. No relocation occurred or was planned at any time." 2. Appraisal prepared by James G. Palmer Appraisals, Inc., dated January 24, 2018. • "The project is an older residential development that was constructed in the 1970's. It is in average condition. A public agency owns the property. It is currently vacant and being planned for renovation and reconfiguration." (Page 3 of the Report) • "The project consists of a vacant multifamily housing development. Based on the current condition of the project as well as its age and amenities, a basic rental rate of $700/month has been concluded after reviewing comparable properties in the area. An additional $15 ger unit is added for laundry income. (Page 5 of the Report) 3. Letter from Baker Manock & Jenson, PC law office on behalf of the Sponsor to the Department dated January 25, 2019. • "This firm serves as legal counsel for the Housing Authority of the City of Fresno ("Housing Authority"), which intends to develop and rehabilitate 28 living units in an existing complex in the City of Fresno, which will also feature community and office spaces (hereinafter, the "Project"). The Project will consist of replacement and/or repairing of floors, windows, paint, appliances, and HVAC systems. The Project will be located on what is now an approximately .75- acre lot located at 4041 Plaza Drive West, Fresno, California 93702." Page 8 of 8 Template Date: October 18, 2022 Date: September 25, 2023, Revised 10/30/2023 & 12/14/2023-Signature Block Project: The Villages at Paragon (FKA Plaza Terrace) Address: 4041 Plaza Drive West, Fresno, CA 93702 HCD Program Awards: 18-NPLH-12658 Type of Construction: Vacant Building FRESNOVIBRANT HH1111TOUSINGHOITIES USING RIA NGp6ED 1331 Fulton Street September 13, 2023 Fresno,California 93721 (559)443-8400 The Villages at Paragon, LP TTY(800)735-2929 c/o Housing Authority of the City of Freson, California www.fresnohousing.org 1331 Fulton Street Fresno, CA 93721 RE: The Villages at Paragon (FKA Plaza Terrace) No Place Like Home (NPLH) Funding Dear HCD Staff, Please accept this letter as formal certification from the Housing Authority of the City of Freson, CA that the Villages at Paragon (FKA Plaza Terrace) was currently vacant from any tenants at the time of closing. No relocation occurred or was planned at any time. If you need further clarification, please contact Sevag Jierian at (559) 240- 9881 or via email at HOUSING AUTHORITY OF THE CITY OF FRESNO, CALIFORNIA Tff-n e. 1i)Z Ut a�ma By: Tyrone Roderick Williams, CEO/Executive Director Plaza Terrace TAB 8 REHABILITATION Plaza Terrace TAB 8 Appraisal Appraisal. Reg. §§ 10322(h)(9) and (26)(A) James G.Palmer Appraisals,Inc. He#9150 APPRAISAL OF REAL PROPERTY t r � ff _ 3l 022 ^ �, s' LOCATED AT 4041 Plaza Dr W Fresno,CA 93702 Lots 120-128 Inclusive,Belmont Center,Plat Book 2,Page 13 FOR 1331 Fulton Street Fresno,CA 93721 OPINION OF VALUE 1,700,000 AS OF 01/24/2018 TABLE OF CONTENTS Tableof Contents/Cover Page.................................................................................................................................................................... 1 Letterof Transmittal.................................................................................................................................................................................. 2 USPAPIdentification................................................................................................................................................................................. 3 EIRREA/USPAP Addendum........................................................................................................................................................................4 71 A.......................................................................................................................................................................................................... 5 Multi-Purpose Supplemental Addendum..................................................................................................................................................... 13 SubjectPhotos......................................................................................................................................................................................... 16 SubjectPhotos...............................................................................................................................:......................................................... 17 BuildingPlans-Page 1............................................................................................................................................................................. 18 BuildingPlans-Page 2............................................................................................................................................................................. 19 BuildingPlans-Page 3............................................................................................................................................................................. 20 BuildingPlans-Page 4............................................................................................................................................................................. 21 BuildingPlans-Page 5............................................................................................................................................................................. 22 BuildingPlans-Page 6............................................................................................................................................................................. 23 BuildingPlans-Page 7............................................................................................................................................................................. 24 BuildingPlans-Page 8............................................................................................................................................................................. 25 BuildingPlans-Page 9............................................................................................................................................................................. 26 BuildingPlans-Page 10........................................................................................................................................................................... 27 AssessmentData......................................................................................................................................................................................28 SoilsData-Page 1................................................................................................................................................................................... 29 SoilsData-Page 2................................................................................................................................................................................... 30 PlatMap................................................................................................................................................................................................... 31 AerialMap................................................................................................................................................................................................ 32 ComparablePhotos 1-3............................................................................................................................................................................ 33 RentalsPhotos 1-3................................................................................................................................................................................... 34 ComparableMarket Data........................................................................................................................................................................... 35 Environmental Addendum-Appraiser........................................................................................................................................................ 36 Statementof Limiting Conditions............................................................................................................................................................... 38 Form TCGV-"TOTAL"appraisal software by a la mode,Inc.-1-800-ALAMODE 01/28/2019 Ms.Christina Husbands Fresno Housing Authority 1331 Fulton Street Fresno,CA 93721 Re: Property: 4041 Plaza Dr W Fresno,CA 93702 Client: Fresno Housing Authority File No.: 9150 Opinion of Value:$ 1,700,000 Effective Date: 01/24/2018 In accordance with your request,we have appraised the above referenced property. The report of that appraisal is attached.The purpose of the appraisal is to develop an opinion of market value for the property described in this appraisal report,as improved,in unencumbered fee simple title of ownership. This report is based on a physical analysis of the site and improvements,a locational analysis of the neighborhood and city,and an economic analysis of the market for properties such as the subject. The appraisal was developed and the report was prepared in accordance with the Uniform Standards of Professional Appraisal Practice.The opinion of value reported above is as of the stated effective date and is contingent upon the certification and limiting conditions attached.The concluded value of the property is $1,700,000,which is split between$100,000 for the land and the remainder($1,600,000)for the buildings equating to$53,333.33 per unit based on 30 units.It is my understanding that you as the applicant will be demolishing one of the buildings that has 2 units. Based on the$53,333.33 per unit,this building has a contributory value to the project of$106,667. It has been a pleasure to assist you. Please do not hesitate to contact me or any of my staff if we can be of additional service to you. Sincerely, S Gregg J. almer License or Certification#:AG002880 State:CA Expires:4/24/2020 gregg@jgpinc.com Client Fresno Housing Authority File No.9150 Property Address 4041 Plaza Dr W City Fresno County Fresno State CA Zip Code 937o2 Owner Fresno Housing Authorit APPRAISAL AND REPORT IDENTIFICATION This Report is nne of the following types: ® Appraisal Report (A written report prepared under Standards Rule 2-2(a) ,pursuant to the Scope of Work,as disclosed elsewhere in this report.) ❑ Restricted (A written report prepared under Standards Rule 2-2(b) pursuant to the Scope of Work,as disclosed elsewhere in this report, Appraisal Report restricted to the stated intended use by the specified client or Intended user.) — Comments on Standards Rule 2-3 1 certify that,to the best of my knowledge and belief: -The statements of fact contained in this report are true and correct. -The reported analyses,opinions,and conclusions are limited only by the reported assumptions and limiting conditions and are my personal,impartial,and unbiased professional analyses,opinions,and conclusions. Unless otherwise indicated,I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. Unless otherwise indicated,I have performed no services,as an appraiser or in any other capacity,regarding the property that is the subject of this report within the three-year period Immediately preceding acceptance of this assignment. I have no bias with respect to the property that is the subject of this report or the parties involved with this assignment. My engagement in this assignment was not contingent upon developing or reporting predetermined results. My compensation for completing this assignment Is not contingent upon the development or reporting of a predetermined value or direction In value that favors the cause of the client,the amount of the value opinion,the attainment of a stipulated result,or the occurrence of a subsequent event directly related to the intended use of this appraisal. -My analyses,opinions,and conclusions were developed,and this report has been prepared,in conformity with the Uniform Standards of Professional Appraisal Practice that were in effect at the time this report was prepared. Unless otherwise indicated,I have made a personal inspection of the property that is the subject of this report. Unless otherwise indicated,no one provided significant real property appraisal assistance to the person(s)signing this certification(if there are exceptions,the name of each individual providing significant real property appraisal assistance is stated elsewhere in this report). Reasonable Exposure Time (USPAP defines Exposure Time as the estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal.) My Opinion of Reasonable Exposure Time for the subject property at the market value stated in this report is: 6 Months or less. Comments on Appraisal and Report Identification Note any USPAP-related issues requiring disclosure and any state mandated requirements: APPRAISER: A SUPERVISORY or CO-APPRAISER(if applicable): Signature: \ Signature: Name: Grego Palmer Name: MAI State Certification#: AGO02880 State Certification#: or State License#: or State License#: State: CA Expiration Date of Certification or License: 04/24/2020 State: _ Expiration Date of Certification or License: Date of Signature and Report: o3/o1/2o19 Date of Signature: Effective Date of Appraisal: 01/2412 0 1 9 Inspection of Subject: ❑ None Interior and Exterior ® Exterior-Only Inspection of Subject: ❑ None ❑ Interior and Exterior ❑ Exterior-Only Date of Inspection(if applicable): 0 1/2 41201 9 Date of Inspection(if applicable): Form ID14E-"TOTAL"appraisal software by a la mode,inc.-1-800-ALAMODE James G.Palmer Appraisals,Inc. FIRREA/ USPAP ADDENDUM Client Fresno Housing Authority Flick. 9150 Property Address 4041 Plaza Dr W city Fresno County Fresno State CA Zip Code 93702 Owner Fresno Housing Authorit Purpose The Purpose of the appraisal is to provide a market valuation of the property that will be used by the client in the underwriting rocess for the submission of a tax credit application. Scope of Work The scope of the appraisal includes a Physical inspection of the exterior of the sub'ect.Data sources used include local public records websites for the City of Fresno Costar,the local multiple rating service and Parcel Quest.Sales used in the appraisal were verified from the MILS service as well as throw h NDC Data.If necessary,they are verified with a third party which may include the buyer,seller or broker involved in the sale.It is also noted that information was rovided b the client Fresno Housin Autho t .These data were relied upon and used in the re oration of this a raisal and the o iniona contained herein. While assumed reliable and accurate the data provided cannot be guaranteed by James G.Palmer Appraisals Inc.or GreggJ.Palmer MAI. Intended Use/Intended User Intended Use: Asset evaluation for underwdting and tax credit application submission. Intended Users: Fresno Housing Authority and or assignees. History of Property Current listing information: According to the local MILS the property is not presently listed for sale. Pdor sale: Please refer to the complete sales history attached to the appraisal. Exposure Time/Marketing Time The exposure time is 6 months or less.No estimate of marketin time is iven. Personal(non-realty)Transfers There are no items of personal PropertV that are included in the valuation of the property. Additional Comments None Certification Supplement 1. This appraisal assignment was not based on a requested minimum valuation,a specific valuation,or an approval of a loan. 2. My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate,the attainment of a stipulated result orihe occurrence of a subsequent event. \`\ Supervisory Appraiser: Gregg Palmer v Appraiser: Signed Date: 03/01/2019 Signed Date: Cediflcation or License#: AGO02880 Certification or License#: Certification or License State: CA Expires: 04/24/2020 Certification or License State: Expires: Effective Date of Appraisal: 01/24/2019 Inspection of Subject: ❑Did Not ❑Exterior Only ❑Interior and Exterior Form FUA_LG2-"TOTAL"appraisal software by a la mode,inc.-1-800-ALAMODE James G.Palmer Appraisals,Inc. Appraisal Report Freddie Residential Income Property Mac PROPERTY IDENTIFICATION File No. 9150 Borrower/Client Fresno Housing Authority Map Reference 23420 Property Address 4041 Plaza Dr W Census Tract No. 0025.02 City Fresno County Fresno State CA Zip Code 93702 Legal Description Lots 120-128 Inclusive Belmont Center Plat Book 2 Page 13 Current Sale Price(if applicable) $ 0 Date of Sale 0112019 Loan Requested$ 0 Terms of Sale Not Applicable Property Rights Appraised ®Fee ❑ Leasehold(attach completed Ground Lease Analysis Freddie Mac Form 461) Lender Lender's Address Instructions to Appraiser:The purpose of this Appraisal is to estimate the current Market Value of the Subject Property.The definition of Market Value is the highest price in terms of money which a property will bring in a competitive and open market under all conditions requisite to afair sale, w the buyer and seller,each acting prudently,knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the o 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 w 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 J time is allowed for exposure in the open market;(4)payment is made in cash or its equivalent; (5)financing,if any,is on terms generally available in m the community at the specified date and typical for the property type in its locale; (6)the price represents a normal consideration for the property sold o unaffected by special financing amounts and/or terms,services,fees,costs,or credits incurred in the transaction. ("Real Estate Appraisal W Terminology,,,published 1975) J a :�Ej Note: Freddie Mac does not considerthe racial composition of a neighborhood to be a relevant factor and it must not be considered In the appraisal. 0 c w Other Information: NIA m Appraisal Requested From Fresno Housing Authority Date 01/02/2019 By:Ms.Christina Husbands 0 ATTACHMENTS If this Appraisal is made for Freddle Mac,attach items 1,2,5,6,and 7.Attach additional items and check box if considered appropriate for this Appraisal. 1.®Descriptive photographs of subject property 8.®Map(s) 2.®Descriptive photographs of street scene 9.❑Plot plan or survey 3.®Photographs of Comparables 10.❑Qualifications of Appraiser 4.®Aerial Photograph 11.❑Ground Lease Analysis Freddie Mac Form 461(required if leasehold interest appraised) 5.❑Sketch or floor plan of typical units 12.❑Summary of reciprocal agreements with other owners for use of parking, 6.®Owner's current certified rent roll if existing or, driveways,recreational facilities,private streets(required if applicable) pro forma if proposed or incomplete 13.❑ 7.❑Owner's income and expense statement (year) 14.❑ or pro forma income and expense statement 15.❑ SUMMARY OF SALIENT FEATURES TOTAL NUMBER OF APARTMENT UNITS 30 CONSTRUCTION: ®Existing Property,Approximate Year Built 197o ❑Proposed Construction ❑ Under Construction DATE OF APPRAISED VALUE 0 1/2 41201 8 ESTIMATED MARKET VALUE(Unfurnished) (SEE PAGE 8 FOR CONDITIONS AND REQUIREMENTS) $ 1.70a 000 Value:Per Unit $ 56,666.67 ,Per Room $ 14,167.00 ,Per Sq.Ft.of Building Area $ 70.73 GROSS ANNUAL INCOME MULTIPLIER 7.75 OVERALL CAPITALIZATION RATE 6.25 % FORECASTED GROSS ANNUAL ECONOMIC INCOME $ 257,400.00 VACANCIES: Actual No.Vacant 30 Percentage of Total Units 100.00 % Projected Percentage of Forecasted Gross Annual Economic Income 5 % $ 12 870.00 FORECASTED ANNUAL EXPENSE AND REPLACEMENT RESERVES (54.3827 %of Forecasted Gross Annual Economic Income) $ 139,981.00 FORECASTED NET ANNUAL INCOME FROM REAL PROPERTY $ 104,549.00 PARKING RATIO 1.o spaces/units SUMMARY OF NEIGHBORHOOD AND PROPERTY Neighborhood Good I Aver. Fair Poor Property Good Aver. I Fair Poor Employment Stability of Immediate Location ❑ I ® ❑ ❑ Architectural Attractiveness ❑ I ® I ❑ ❑ Convenience to Employment Centers ❑ I X ❑ ❑ Landscaping ❑ 1 ❑ 1 ® ❑ Protection from Detrimental Conditions ❑ 1 ® ❑ ❑ Quality of Construction(Materials&Finish) ❑ I ® I ❑ ❑ Adequacy of Shopping Facilities ❑ I ❑ ® ❑ Condition of Exterior ❑ 1 ® 1 ❑ ❑ Adequacy of Public Transportation ❑ I ® ❑ ❑ Condition of Interior ❑ I ® 1 ❑ ❑ Adequacy of Utilities ® ❑ 1 ❑ 1 ❑ Room Size and Layout ❑ I ® I ❑ ❑ Police and Fire Protection ® ❑ 1 ❑ 1 ❑ Closets and Storage ❑ ® ❑ ❑ Recreational Facilities ❑ ❑ ® ❑ Light and Ventilation ❑ ® ❑ ❑ Property Compatibility ❑ ® I ❑ ❑ Overall Livability ❑ ® ❑ ❑ General Appearance of Properties ❑ ® I ❑ ❑ Compatibility to Neighborhood ❑ ® ❑ ❑ Appeal to Market ❑ ® I ❑ I ❑ Overall Appeal and Marketability ❑ ® ❑ ❑ Freddie Mac Form 71A(04/2004),Page 1 of 8 Form 71 At-"TOTAL"appraisal software by a la mode,inc.-1-800-ALAMODE AREA DATA The ®City ❑ County ❑ Area population is approximately 540000 Population: ®Increasing 1.0o %per year ❑Stable ❑Decreasing %per year Describe the economic base which contributes a major influence on the stability of real estate The primary economic influence in the area is agriculture. Discuss employment stability Employment in the City has been improving since 2n17.At present the unemployment rate is approximately 5%citywide.The unemployment rate has varied from 5%to 6%over the past 12 months. Rent Control: ❑ Yes ®No Comment There is no rent control. Are local Government Agencies discouraging apartment development? ❑Yes ®No Comment General comments,if applicable The city has grown at a rate of approximately 1%over the past 5 years,There are no major changes expected in the coming months or foreseeable future. NEIGHBORHOOD AND MARKETING AREA Type:®Urban ❑ Suburban ❑ Rural Properly values: ❑ Increasing ® Stable ❑ Declining Present Land Use: Built up % Single Family 70 % Condominiums % Apartments 20 % Commercial 10 % Industrial Change in Present Land Use: ®Not Likely ❑Likely or ❑Taking Place From to Comment,if applicable There are no foreseeable changes expected in the neighborhood. Describe overall property appeal and maintenance level Properties in the area typically vary from fair to average.There are of course exceptions that exceed the minimum and maximum. Describe any incompatible land uses(if none,so state) There are no incomparable land uses in the area. Single Family: Price range$ 125,000 to$ 250,000 Predominant$ 160,000 Age 10 yrs. to 90 yrs. Predominant 50 yrs. Apartments: Predominant Range in Immediate Area(excluding extremes) WALK-UP ELEVATOR Number of Units In Each Building_____ ----------------- 10-100 Units NIA Units Age --------------------------------------------------------------- 20-50 Years N/A Years Height(number of stories)-------------------------------------------- 1-2 Stories N/A Stones Condition ____________________________________________ Average N/A Rental Range by Unit Type: UnitTypes: 1bd ------------------------- $ 500 $ 700 2bd $ 600 $ 800 3bd ----------------------- $ 700 $ 900 4bd ------------------------- $ 900 $ 1,500 Comment on any unusual aspects of the above ranges NIA Est.neighborhood apartment vacancy rate 5 % ❑Decreasing®Stable ❑Increasing. Rent Levels are ❑Increasing ®Stable ❑Decreasing Describe the unittype(s)by number of bedrooms and rental range that are in the greatest tenant demand Two and Three bedroom units are in greatest demand in the neighborhood. Describe the unittype(s)by number of bedrooms and rental range that are in oversupply There appear to be no units in oversupply in the market Describe the potential for additional units in area considering land availability,zoning,utilities,etc. There appear to be no units that are in undersupply in the market. Describe the unsatisfied demand for additional units in area by type and rental Not Applicable Is population of relevant market area of insufficient size,diversity and financial ability to support subject property and its amenities? No If yes,specify. Access or convenience _ Item Distance Subject Propery Good Aver. Fair Poor Public Transportation 1/4 Mile ❑ ® ❑ ❑ Employment Centers 1/2 Mile ❑ ® ❑ ❑ Shopping Facilities 1/2 Mile El ® ❑ ❑ Grammar Schools 1/2 Mile ❑ ® ❑ ❑ Freeway Access 1 Mile ❑ ® ❑ ❑ Describe any probable changes in the economic base of neighborhood which would either favorably or adversely affect apartment rentals (e.g. employment centers,zoning) Market conditions are considered stable.Property values have been experiencing improvement in recent months.Supply and demand are considered in balance.Financing is primarily FHA conventional or cash.Concessions are present but not prevalent. General comments Including either favorable or unfavorable elements not mentioned(e.g.public parks,view,noise,parking congestion) The property is located in central sector of the community and is within a neighborhood primarily developed to residential and commercial uses.There are some scattered commercial uses throughout.The neighborhood is considered an older area and there are no new developments occurring. Freddie Mac Form 71A(04/2004),Page 2 of 8 Form 71A1-"TOTAL"appraisal software by a la mode,inc.-1-800-ALAMODE SITE Dimensions Irregular Area 29,620 SF Sq.Ft.or Acres Zoning(classification,uses,and densities permitted) RS-5(Medium density residential) Present improvements ®do ❑do not conform to zoning regulations. Highest and Best Use: ®Present use ❑Other(specify) Site improvements: ®Public Water ❑Private Well ®Public Sewer ❑Septic Tank ®Storm Sewer ®Sidewalk ®Curbs ®Gutters ❑Alley ®Street Lights ®Electricity ®Gas ❑Underground Electricity and Telephone ❑ Access By: ®Public Street ❑Private Road Street Surface: Asphalt Maintained By: ®Municipality ❑Private Association(attach summary of Association documents Ingress and egress(adequacy and safety) Typical for the area. Lot sketch showing lot dimensions,distance to nearest comer and the location of any nearby detrimental conditions. O - Topography,view amenity,lot drainage,flood condition,slopes,etc. The property is within a residential neighborhood.The site is typical for the area with respect to topography,drainage -='�"r- —-------------- � etc. „F 7k I I. Easements or encroachments on site and off site(if any) None known. I � � ) Is the property located within a HUD Identified Special Flood Hazard Area? No Favorable or unfavorable conditions not mentioned above including any nonconforming use(s) of present improvements. None DESCRIPTION OF IMPROVEMENTS ITEM DESCRIPTION Construction: X Existing Approx.Year Built 1970 Foundation Concrete ❑Proposed ❑Under Construction Basic Structural Wood Frame Type Project: ®Walk-Up ❑Elevator ❑Row or Townhouse System Exterior Walls Wood&Stucco ❑Other (Specify) Roof Covering Composition No.of Bldgs. 5 No.of Stories 2 No.of Units 30 Interior Walls Sheetrock Gross Bldg.Area 24,036 Sq.Ft. Density 44.12 Units Per Acre Floor Covering Resilient OVERALL IMPROVEMENT RATING Calling Heights or Units Finished Floor to Finished Ceiling is 6 R. Good Aver. Fair Poor Bath Floor and Walls Resilient/Sheetrock Architectural Attractiveness __________________ ❑ ® ❑ ❑ Insulation Code date of construction Quality of Construction______________________ ❑ ® ❑ ❑ Soundproofing Unknown ❑ ® ❑ ❑Condition of Exterior_________________________ Heating System, Central Condition of Interior _________________________ ❑ ® ❑ ❑ Central Rooms Size and Unit Layout _________________ ❑ ® ❑ ❑ or Individual&Fuel Kitchen Facilities ___________________________ ❑ ® ❑ ❑ Air Conditioning Central ❑ ® El ElSystem,Central or Closets and Storage ________________________ Individual&Fuel Soundproofing Adequacy ____________________ ❑ ® ❑ ❑ Hot Water Heaters Gas Insulation Adequacy_________________________ ❑ ® ❑ ❑ Built-In Kitchen R/0 H&F Disp, Electrical Service Adequacy _________________ ❑ ® ❑ ❑ Appliances Comment on items rated fair or poor and items not covered above. The project is Elevator No.0 Not Applicable an older residential development that was constructed in the 1970's.It is in Plumbing Fixtures Typical/Bathrooms&Kitchens average condition.A public agency owns the property.It is currently vacant and Security Features None being planned for renovation and reconfiguration. Effective Age 3o Years. Est.Remaining Economic Life 20 Yrs. PARKING: Total Spaces 30 In Buildings 0 In Garage(separate) 0 In Carport 30 Open(on-site) 0 Parking Ratio 1.0 Space(s)/Unit. Discuss parking adequacy and convenience to apartment units The parking is currently below the minimum standards for the development. Driveways,curbing,sidewalks,lighting(adequacy and condition) Typical for the project.Fair to average condition. Describe recreational facilities None Describe basement,lobby,garage,laundry,and other building items not described above Onsite laundry facility. Comment if any of the above items or other building items are inadequate or are in below average condition While livable the property is in need of renovation. Recommended observable repairs:(List repairs,painting,termite treatment,etc.,you recommend be made to the improvements to make the property readily marketable;if none,so state). The project is a typical 1970s constructed apartment complex. General comments if applicable: The Fresno Housing Authority owns the property and the project has served as affordable emergency housing.The property is unoccupied at the present time and is in need of renovation.The overall quality and condition are fair to average.All of the units have two bedrooms and a single bath.There are no amenities. Freddie Mac Form 71 A(04/2004),Page 3 of 8 Form 71A1-"TOTAL"appraisal software by a la mode,Inc.-1-800-ALAMODE COSTAPPROACH LAND VALUE ESTIMATE: Include comparable land data if available and appro)rlate for this appraisal) ITEM COMPARABLE NO.1 COMPARABLE NO.2 COMPARABLE NO.3 Address or Location Shaw&3rd 4960 E.Tulare Street 1685 S.Bethel Avenue Biola California 93606 Fresno California 93727 Sanger,California 93657 Proximity to Subject 15 Miles 10 Miles 10 Miles Zoning R-2 RS-5 R-1 Dimensions or Size 43,575 88,780 245 796 Shape Rectangular Irregular Multi le TopoQraphy Level&Above Street Level&Above Street Level&Above Street Utilities All All All = Location Corner Interior Interior Price $160 o00 $180 000 $400 000 Sale--Listing--Offer Sale#89268 Sale#143108 Sale#1665 - Date of Sale 7/2017 11/2017 02/2015 Price Per Sq.Ft.or Unit $3.67 $2.03 $1.63 Similar area and location.West of the In city of Fresno.Limited demand in Vacant parcel mapped for 14 lots. Fresno City limits. neighborhood. Purchased for church development. Comparison to Subject Indicated Per Sq.Ft.or Per $3.50 $3.00 $3.00 Unit Value of Subject Comments and Reconciliation: Although the cost approach is excluded a land valuation is necessaryfor the assi nment.Three recent land sales have been included. A unit value of$3.40/SF has been concluded for the subject.Hence the following: 29,620 SF $3.40/SF=$100 708 ESTIMATED LAND VALUE: $ 3.4 per SF or $ 100,000 IMPROVEMENTS--ESTIMATED REPRODUCTION COST NEW Source of Cost Data: (Optional) Sq.Ft. @ $ $ Sq.Ft. @ $ $ Sq.Ft. @ $ $ Sq.Ft. @ $ $ Sq.Ft. @ $ $ Carports Sq.R. @ $ $ Garage Sq.Ft. @ $ $ Porches,Patios,Balconies,Stairs,Etc. $ Fences,Walls $ Paving,Walks and Lighting $ Landscaping $ Recreational Facilities $ Total Estimated Reproduction Cost New of Improvements $ Less Total Depreciation $ Depreciated Value of the Improvements $ Add Estimated Land Value $ 100,000 Indicated Value by the Cost Approach (IN FEE SIMPLE)P $ 100,000 Rounded to ------------------------------------------------- $ - Comments,including explanation of depreciation: P If property involves leased land,show calculations forfee interest. Deduct Value of Fee Interest $ Indicated Value of Leasehold Interest by the Cost Approach $ Freddie Mac Form 71 A(04/2004),Page 4 of 8 Form 71Al-"TOTAL"appraisal software by a la mode,inc.-1-800-ALAMODE COMPARABLE RENTAL DATA Comparables selected are the most recent rentals,similar and proximate,known to the undersigned,that a tenant of subject property would have given consideration to renting. ITEM COMPARABLE NO.1 COMPARABLE NO.2 COMPARABLE NO.3 Address or location 920 W Griffith Way 3880 N Fruit Ave 853 E Hedges Ave Fresno CA 93705 Fresno CA 93705 Fresno CA 93728 Proximity to Subject 4.56 miles NW 4.19 miles NW 2.46 miles W Map Code Date of Rental Survey 01/2019 01/2019 01/2019 Brief No.Units:200 No.Vac.: 10 Yr.Blt.:1974 No.Units: 124 No.Vac.: 5 Yr.Bit.:1986 No.Units: 4 No.Vac.: 0 Yr.Bit.:1950 Description Older 200 unit proiect built in the 1960's. Medium size project built in 1980's Older 4 plex in similar area. of Property Improvements Quality&Condition Quality Avoi Condition Ava Quality Ava Condition Ava Quality Ava Condition Av =_ Unit Rm. Size Monthly Rent Unit Rm. Size Unit Rm. Count Count Monthly Rent Count Size Monthly Rent Tot BR B Sq.Ft $ persq. Tot. BR B Sq.Ft. $ per sq. Tot. BR B Sq.Ft $ persq. ft. ft. ft. Individual 3 1 1 633 880 1.390 3 1 1 665 715 1.080 1 1 1 500 600 1.200 Unit 4 2 1 796 975 1.22¢ 4 2 1 860 795 0.920 ¢ Breakdown ¢ 4 2 2 1020 9b0 0.880 ¢ - ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ Utilities,furniture Rent includes water,sewer and garbage. Rent includes water,sewer and garbage. Smaller older four lex in similar area. and amenities Unfurnished. Unfumished. Studio apartment. included in rent This is an older development located in a Newer ro'ect in su edor condition. Inferior in quality and condition. Comparison similar area.The property was renovated Modest amenities.Gated development. to Subject in 2007.Superior development in Quality, condition and amenities. General comments(including any rental concessions)if applicable: The projects are all in similar locations.The subject has all two bedroom units having approximately 655 SF each.A basic rental rate of$675 per month is projected based on its age and quality and condition. MONTHLY RENT SCHEDULE--SUBJECT PROPERTY Rental schedule is shown by type of units. Scheduled rents are actual rentals for an existing property,or projected rents for a proposed or incomplete building.Economic rents are forecasted rents to indicate the fair market rental the subject units would command if available for rent on the open market. Unit Rm.Count Sq.Ft. No. SCHEDULED RENTS ECONOMIC RENTS No.of Total Area Units Per Unit Total Per Unit Total Per Units Tot.BR B Rooms Per Unit Vacant Unfurn. Furn. Rents Unfurn. Furn. Rents Sq.Ft.or Room 304 2 1 120 655 30$ $ $ $ 700 $ $ 21 000 1.07¢$ 175 30 E TOTAL4 120 30 21 000 OTHER MONTHLY INCOME Parking ------------------------------------------ $ --------------------$ Laundry Income ___________________$ --------------------$ 450 Commercial Space---------------------------------------------- $ ------------------ $ $ -$ $ $ Total Gross Monthly Income-----------------------------------------------$ --------------------$ 21,450 Total Gross Annual Income _______ _________ _________ ________________$ ___---__ __________$ 257,400 Utilities Included in Scheduled(actual)Rents: ®Water ❑Gas ❑Heat ❑Electric ❑Air Conditioning ® Sewer/Garbage Utilities Included in Economic Rents: ®Water ❑Gas ❑Heat ❑Electric ❑Air Conditioning ® Sewer/Garbage If proposed project or project under construction,the rent up time necessary,after completion,to lease 80'Y of the units at the projected economic rents is estimated to be months. Comments(including any rental concessions in scheduled rents,or anticipated in economic rents; if none,so state). The project consists of a vacant multifamily housing development.Based on the current condition of the project as well as its age and amenities a basic rental rate of$700/month has been concluded after reviewing comparable properties in the area.An additional$15 per unit is added for laundry income. Freddie Mac Form 71 A(04/2004),Page 5 of 8 Form 71 Al-"TOTAL"appraisal software by a la mode,Inc.-1-800-ALAMODE MARKETAPPROACH The market data selected are the most recent sales of properties,similar and proximate to subject,known to the appraiser,that a buyer of subject property would have given consideration to purchasing. In the absence of actual sales,listings of comparable properties may be used but an explanation must be included in the"Comments"section below. ITEM SUBJECT COMPARABLE N0.1 COMPARABLE NO.2 COMPARABLE NO.3 Address 4041 Plaza Dr W 4880 E University Ave 3998 E Saginaw Way 3935 N Effie St Fresno Fresno CA 93703 Fresno CA 93726 Fresno CA 93726 Proximity to Subject 1.71 miles NE 2.57 miles N 3.16 miles NW Map Code 23420 Lot Size 29,620 SF 27,878 SF 31,363 SF 37,897 SF No,Units: 30 No.Vac.: 30 No,Units: 16 No.Vac.: 0 No.Units: 22 No.Vac.: 0 No.Units: 42 No.Vac.: O Brief Description Year Built: 1970 Year Built: 1970 Year Built: 1972 Year Built: 1962 of Building Wood&stucco construction. Tvoical wood frame and wood Typical wood frame and wood Typical wood frame and wood Improvements Basic finishes and interiors, walk up. walk up. walk up. QualftV Average Average Average Average Condition Fair/Average Average Average Fair Recreational Facilities None None None None Pool None None None None Parkin Carport 1/Unit Open 1/Unit Carports Carports Tenant Appeal Average Average Average Average No.of UNIT ROOM COUNT No.of UNIT ROOM COUNT No.of UNIT ROOM COUNT No.of UNIT ROOM COUNT Units Tot. I BR T b Units Tot. I BR I b Units Tot. BR b Units Tot. I BR I b 30 4 2 1 16 4 2 2 11 3 11 1 16 3 1 1 Unit 11 4 12 1 25 4 2 1 Breakdown 1 5 3 1 Util.Paid by Owner Water/Sewer/Trash Water/Sewer/Trash Water/Sewer/Trash Water/Sewer/Trash Data Source Inspection Costar Costar Costar Price 0 Unf. F 1,150,06i) Unf.0 F $ 1,600,000 Unf.F1 F $ 2,450,000 Unf. F Sale--Listln --Offer N/A Sale/#154875 Sale/#94376 Sale/#50468 Date of Sale 01/2019 12/2018 08/2018 04/2018 Cash or Cash Equivalent All cash transaction $480 000 ON with balance Cash to seller Terms financed through Citizens (Including conditions Business Bank at market of sale and terms. financing terms) Complete as many of the following as possible using data effective at the time of sale Gross Annual Income $257 400 $121 728 $178 200 $324,000 Gross Ann.Inc.Mult.(1) 9.45 8.98 7.56 Net Annual Income $ $73370 $80000 $209,965 Expense Percentage (2) % 38 % 54 % 35 % Overall Cap.Rate (3) 6.38 % 5.00 % 8.57 % Price Per Unit $ $71 875 $72 727 $58 333 Price Per Room $ $17 969 $20,779 $16 013 Price Gross Bldg.Area $ s ,ft.bid .area $ 56.17 s .ft.bldg.area 96.71 s .ft.bldg.area $ 80.92 /s .ft.bldg.area Smaller walk up project in Smaller walk-up built in the Slightly larger walk up in Fresno.Built in 1970. 1970s. central Fresno.Minimal amenities.One two and three COMMENTS bedroom units. Similar location and quality. Superior location and appeal. Similar proiect havinq similar COMPARISON Condition is superior. location. TO SUBJECT VALUE Indicated Gross Income Multiplier 7.75 X Gross Annual Economic Income$ 257,400 $ 1,994,850 INDICATORS Indicated Value Per Unit $ 60,000.00 X 30 Units------------- -------_-$ 1,800,000 FOR THE Indicated Value Per Room $ 17,000,00 X 120 Rooms----------------------------------$ 2040000 SUBJECT Indicated Value Per Sq.R.of Gross Bldg.Area $ 70 X 24,036 Sq.Ft.Bldg.Area -----$ 1,682,520 PROPERTY Indicated Overall Capitalization Rate _-_____ _____________ _-_-----__-_______________- 6.25% (1) Sale Price-Gross Annual Income (2)Total Annual Expenses-Total Gross Annual Income (3) Net Annual Income-Price RECONCILIATION: In this instance greatest emphasis is placed on the price per unit and price per square foot methods. INDICATED VALUE BY MARKET APPROACH _____ ____ _______________$ 1,750000 Roundedto -------------------------------------------------- ---------------$ 1,750,000 Freddie Mac Form 71 A(04/2004),Page 6 of 8 Form 71 Al-"TOTAL'appraisal software by a la mode,inc.-1-800-ALAMODE ANNUAL EXPENSE ANALYSIS ITEM ❑ACTUAL (yr.) APPRAISER'S APPRAISER'S CALCULATIONS OR COMMENTS []PROPOSED FORECAST FIXED EXPENSES: Actual ❑Est.Total Assessed Value $ o 1. Real Estate Taxes ------------------- %of Value Tax Rate Per$100 $ 1.2 $ $ 0 No taxis applicable.Public a enc owned. 2. Other Taxes or Assessments - 0 Welfare Exemption-Tax Exempt 3. Insurance------------------------------------- 10,800 $30/Unit per month 4. Licenses - -------------------- N/A 5. Unsubordinated Ground Rent ------------------- N/A OPERATIONAL EXPENSES: 6. Fuel------- --------$ $ N/A 7. Gas------- ------------------- 1,800 $5/Unit per month 8. Electricity ------------------------------------- 1,800 $5/Unit permonth 9.Water&Sewer - --------- 7,200 $20/Unit per month 10,Trash Removal --------------------- 7,200 $20/Unit per month 11. Pest Control ------ 1,800 $5/Unit per month 12. Building Maintenance&Repairs ------- 36,000 $100/Unit per month 13. Interior&Exterior Decorating ------ 10,800 $30/Unit per month 14. Cleaning Expenses ---------------------------- 3,600 $1o/Unit per month 15. Supplies ------------------- 3,600 $10/Unit per month 16, Elevator Maintenance--------------------------- N/A 17. Pool Maintenance - ------------------- N/A 18. Parking Area Maint.&Snow Removal ------------ N/A 19. Gardening ------------------ 4,800 $400 per month 20. Nonresident Management ------------ 9,781 4%of EGI 21. Resident Manager's Salary (No. ) 9,000 $25/Unit per month PT 22. Resident Manager's Apt.Allowance 8,400 $700/Month 23. Custodian's Salary (No. ) NIA 24.Custodian's Apt.Allowance -------------------- N/A 25. Engineer's Salary (No. ) ------------- N/A 26. Elevator Operator's Salary (No. ) N/A 27.Telephone Operator's Salary (No. ) N/A 28. Security Personnel's Salary (No. ) N/A 29. Other Salaries (No. )----------------- NIA 30. Payroll Taxes - ----------- 5,400 $15/Unit 31.Advertising -------------------- 1,800 $5/Unit permonth 32.Telephone -- ------------------- 1,800 $5/Unit permonth 33. Legal&Audit ------------------- 5,400 $15/Unit per month 34. Leased Furniture ------------------------------- 35- 36. REPLACEMENT RESERVES: 37. Carpeting&Drapes ---------------------------- $ $ 38. Ranges&Refrigerators 39. Dishwashers&Disposals ---------------------- 40. Individual Heating&AC Units ------------------- 41. Lump Sum----------------------------------- 9000 $300 perunit 42.---------------------------------------------- TOTAL EXPENSES&REPLACEMENT RESERVES $ $ 139,981 Comments(identify items by number): No taxes are included.The property is tax exempt as it is owned by a public agency,receives a welfare exemption and there are no assessed values or taxes.Expenses are based on market expectations.The property is vacant and owned by a public agency.There are no historical income and expense records. INCOME APPROACH Total Gross Annual Economic Income(See Rent Schedule) -___ _________________________ $ 257,400 Less Forecasted Vacancy and Collection Loss ----------------------------------------------------------------- (5%) $( 12870) Effective Gross Annual income _-______ ____________ $ 244,530 --- --------- --------- --------- --------- ---------- ________ Less Forecasted Annual Expenses and Replacement Reserves ( 54.38 %of Total Gross Annual Economic Income)---------------- $( 139,981) Net Annual Income from Total Property _________________________ $ 104,549 -------------------------------- Less Return on and Recapture of Depreciated Value of Furnishings is 0 @ 0 %j ------------------------------ $( ) Net Annual Income from Real Property _____ _______________________________________ $ 104,549 Detail clearly method and mathematics of capitalizing Net Annual Income from Real Property A capitalization rate of 6.25%has been selected. $104549/6.25%=$1 672 784 INDICATED VALUE BY INCOME APPROACH -------------- --------------------- ________________________ $ 1,672,784 Roundedt0 _--_-_-________ $ 1,673000 Freddie Mac Form 71 A(04/2004),Page 7 of 8 Form 71 Al-"TOTAL"appraisal software by a la mode,Inc.-1-800-ALAMODE RECONCILIATION AND VALUE CONCLUSION Indicated Value by the Cost Approach ------------$ Indicated Value by the Market Approach $1,750 000 Indicated Value by the Income Approach --------- $1,673,000 FINAL RECONCILIATION In the final opinion of value equal emphasis is placed on both methods of valuation Market rents were used in the analysis.Market expenses were used as the project is owned by a public agency and previously operated as an affordable housing complex in bulk with several other projects. There were no historical operatinq records. CONDITIONS AND REQUIREMENTS OF APPRAISAL(include required repairs,replacements,painting,termite inspections,etc.): There are nospecial conditions. VALUATION: This Appraisal Is based upon the definition of Market Value,the Certification,the Contingent and Limiting Conditions,and the requirements that are stated in this report. As a result of my investigation and analysis,my estimate of Market Value of the subject property as of 01124/2 is_-_-__ $ 1,700,000 Date0 310 1/2 01 9 Appraiser Il Gregg Palmer If Applicable,complete the following Date Appraiser Date ❑Supervising or ❑Review Appraiser ❑Did ❑Did not physically inspect property. CERTIFICATION: The Appraiser certifies and agrees that 1.The Appraiser has no present or contemplated future interest in the property appraised and neither the employment to make this Appraisal,nor the compensation for It,is contingent upon the appraised value of the property, 2.The Appraiser has no personal Interest in or bias with respect to the subject matter of the appraisal report or the participants to the sale. The"Estimate of Market Value"in the appraisal report is not based in whole or in part upon the race,color,or national origin of the prospective owners or occupants of the property appraised,or upon the race,color or national origin of the present owners or occupants of the properties in the vicinity of the property appraised, 3.The Appraiser has personally inspected the property,both inside and out,and has made an exterior inspection of all comparable sales listed herein. To the best of the Appraiser's knowledge and belief,all statements and information in this report are true and correct,and the Appraiser has not knowingly withheld any significant information. 4.All contingent and limiting conditions are contained herein(Imposed by the terms of the assignment or by the undersigned affecting the analyses, opinions,and conclusions contained in this report). 5.This Appraisal Report has been made in conformity with and is subject to the requirements of the Code of Professional Ethics and Standards of Professional Conduct of the appraisal organizations with which the Appraiser is affiliated. 6.All conclusions and opinions concerning the real estate that are set forth in the Appraisal Report were prepared by the Appraiser whose signature appears above on this Appraisal Report,unless indicated as"Review Appraiser."No changes of any Item of the Appraisal Report shall be made by anyone other than the Appraiser,and the Appraiser shall have no responsibility for any such unauthorized change, CONTINGENT AND LIMITING CONDITIONS: The certification of the Appraiser appearing in the Appraisal Report is subject to the following conditions and to such other specific and limiting conditions as are set forth by the Appraiser in the report, 1.The Appraiser assumes no responsibility for matters of a legal nature affecting the property appraised or the title thereto,nor does the Appraiser render any opinion as to the title,which is assumed to be good and marketable, The property is appraised as though under responsible ownership. 2.Any sketch in this report may show approximate dimensions and is included to assist the reader in visualizing the property.The Appraiser has made no survey of the property. 3.The Appraiser is not required to give testimony or appear in court because of having made this Appraisal with reference to the property in question, unless arrangements have been previously made therefor. 4.The distribution of the total valuation in this report between land and improvements applies only under the existing program of utilization.The separate valuations for land and building must not be used in conjunction with any other Appraisal and are invalid if so used. 5.The Appraiser assumes that there are no hidden or unapparent conditions of the property,subsoil,or structures which would render it more or less valuable, The Appraiser assumes no responsibility for such conditions or for engineering which might be required to discover such factors. 6.Information,estimates,and opinions furnished to the Appraiser,and contained in this report,were obtained from sources considered reliable and believed to be true and correct.However,no responsibility for accuracy of such items furnished the Appraiser can be assumed by the Appraiser. 7.Disclosure of the contents of this Appraisal Report is governed by the By-laws and Regulations of the professional appraiser organizations with which the Appraiser is affiliated. 8.Neither all nor any part of the contents of this report,or copy thereof(including conclusions as to property value,the identity of the Appraiser, professional designations,reference to any professional appraisal organizations,or the firm with which the Appraiser is connected)shall be used for any purposes by anyone but the client shown on Page 1 of this report,the mortgagee or its successors and assigns,mortgage insurers,consultants, professional appraisal organizations,any state or federally approved financial institution,any department agency,or instrumentality of the United States or of any State or of the District of Columbia,without the previous written consent of the Appraiser;nor shall it be conveyed by anyone to the public through advertising,public relations,news,sales,or other media,without the written consent and approval of the Appraiser. 9.On all Appraisals involving proposed construction,the Appraisal Report and value conclusion are contingent upon completion of the proposed improve- ments in accordance with the plans and specifications prepared by with a last revision date of which have been initialed and dated by the Appraiser. Freddie Mac Form 71 A(04/2004),Page 8 of 8 Form 71 Al-"TOTAL"appraisal software by a la mode,inc.-1-800-ALAMODE James G.Palmer Appraisals,Inc. MULTI-PURPOSE SUPPLEMENTAL ADDENDUM 9150 Client Fresno Housing Authorit Property Address 4041 Plaza Dr W City Fresno County Fresno State CA Zip Code 93702 Owner Fresno Housing Authority This Multi-Purpose Supplemental Addendum for Federally Related Transactions was designed to provide the appraiser with a convenient way to comply with the current appraisal standards and requirements of the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of Currency (OCC), the Office of Thrift Supervision (OTS), the Resolution Trust Corporation (RTC), and the Federal Reserve. This Multi-Purpose Supplemental Addendum is for use with any appraisal. Only those sections and statements which have been marked by the appraiser apply to the property being appraised. ® PURPOSE,INTENDED USE&INTENDED USER(S) OF APPRAISAL ®The purpose of the appraisal is to estimate the market value as defined herein,or ❑ ®Intended use of the appraisal report: To assist the client in the underwriting process for a tax credit application. •Intended user(s)of the appraisal report(by name or type): Fresno Housing Authority and or assignees. O This is a federally related transaction. ® EXTENT OF APPRAISAL PROCESS •The appraisal is based on the information gathered by the appraiser from public records,other identified sources,inspection of the subject property and neighborhood,and selection of comparable sales within the subject market area.The original source of the comparables Is shown In the Data Source section of the market grid along with the source of confirmation,if available.The original source is presented first.The sources and data are considered reliable. When conflicting information was provided,the source deemed most reliable has been used. Data believed to be unreliable was not included in the report nor used as a basis for the value conclusion. O The Reproduction/Replacement Cost is based on: supplemented by the appraiser's knowledge of the local market. O Physical depreciation is based on the estimated effective age of the subject property.Functional and/or external depreciation,if present,is specifically addressed in the appraisal report or other addenda.In estimating the site value,the appraiser has relied on personal knowledge of the local market.This knowledge is based on prior and/or current analysis of site sales and/or abstraction of site values from sales of improved properties. O The subject property is located In an area of primarily owner-occupied single family residences and the Income Approach is not considered to be applicable. Forthis reason,the Income Approach was not used. O The Estimated Market Rent and Gross Rent Multiplier utilized in the Income Approach are based on the appraiser's knowledge of the subject market area. The rental knowledge is based on prfor and/or current rental rate surveys of residential properties.The Gross Rent Multiplier is based on poor and/or current analysis of prices and market rates for residential properties. O For income producing properties,actual rents,vacancies and expenses have been reported and analyzed.They have been used to project future rents, vacancies and expenses. O Actual rents and market vacancy and expense have been used. ® FEMA FLOOD HAZARD DATA ® Flood map is attached ®Subject property is not located In a FEMA Special Flood Hazard Area. O Subject property is_located in a FEMA Special Flood Hazard Area. Zone FEMA Map/Panel# Map Date Name of Community X500 06019CI570H 2/18/2009 Fresno O The community dnes not participate in the National Flood Insurance Program. O The community doers artn Ieloatr.in the National Flood Insurance Program. O It is covered by a regular program. O It is covered by an emergency program, Analysis/Comments: ® CURRENT SALES CONTRACT ®The subject property is currently not under contract. O The contract and/or escrow instructions were not available for review.The unavailability of the contract is explained later in the addenda section. O The contract and/or escrow instructions were reviewed.The following summarizes the contract: Contract Date Amendment Date Contract Price Seller Ownerof Record Fresno Housing Authorit O The contract Indicated that personal property was not included in the sale. O The contract indicated that personal property was included.It consisted of Estimated contributory value Is$ O Personal property was not included in the final value estimate. O Personal property was included in the final value estimate. O The contract indicated no financing concessions or other incentives. O The contract indicated the following concessinns or incentives: O If concessions or incentives exist,the comparables were checked for similar concessions and appropriate adjustments were made,if applicable,so that the final value conclusion is in compliance with the Market Value defined herein. Analysis/Comments: Page 1 of 3 Form MPA4-"TOTAL"appraisal software by a la mode,Inc.-1.800-ALAMODE ® MARKET OVERVIEW Include an explanation of current market conditions and trends. •<12 Months is considered a reasonable exposure time forthe subject property at a value range of$ 1,500,000 to$ 1,700,000 Analysis/Comments: O is estimated to be the marketing time for the subject property, Analysis/Comments: O Marketing Factors: The appraisal assumes that the property would be listed with a local reputable company who specializes in small residential income properties. ® SUBJECT PROPERTY OFFERING INFORMATION According to the Fresno MLS the subject property: ®has not been offered for sale in the past: ❑30 days ®1 year ❑ 3 years. O is currently offered for sale for$ O was offered for sale within the past: ❑30 days ❑1 year ❑ 3 years for$ O Offering information was considered in the final reconciliation of value. O Offering information was not considered in the final reconciliation of value. O Offering information was flat available.The reasons for unavailability and the steps taken by the appraiser are explained later in this addendum. Analysis/Comments: ® SALE/TRANSFER HISTORY&ANALYSIS OF SUBJECT PROPERTY According to the following data source(s): Fresno MLS the subject property: •Has not transferred ❑ in the past one year. ® in the past three years. ❑ In the past five years. O Has transferred ❑ in the past one year. ❑ in the past three years. ❑ in the past five years. O All prior sales or transfers occurring in the past 3 years prior to the Effective Date of Appraisal are listed below. Date of Sale/Transfer Price of Sale/Transfer Seller Buyer Data Source(s) Effective Date of Data Sources Subject Sale/Transfer History Analysis/Comments: ® SALE/TRANSFER HISTORY&ANALYSIS OF COMPARABLE SALES According to the following data source(s): NDC Data all prior sales or transfers occurring in the past 1 year prior to the most recent date of sale or transfer are listed below. PRIOR SALE/TRANSFER# COMPARABLE#1 COMPARABLE#2 COMPARABLE#3 Date of Sale or Transfer Price of Sale or Transfer Seller Buyer Data Source(s) NDC Data NDC Data NDC Data Effective Date of Data Source(s) 0112019 01/2019 0112019 PRIOR SALE/TRANSFER# COMPARABLE# COMPARABLE# COMPARABLE# Date of Sale or Transfer Price of Sale or Transfer Seller Buyer Data Source(s) Effective Date of Data Source(s) Comparables Sale/Transfer History Analysis/Comments: Other than those sales reported the comparables have not been involved in any other sales transactions over the past 12 months. Page 2 of 3 Form MPA4-"TOTAL"appraisal software by a Is made,!no.-1-800-ALAMODE ® ADDITIONAL CERTIFICATIONS The Appraiser certifies and agrees that: (1) The analyses,opinions and conclusions were developed,and this report was prepared,In conformity with the Uniform Standards of Professional Appraisal Practice ("USPAP"). (2) Their compensation is not contingent upon the reporting of predetermined value or direction in value that favors the cause of the client,the amount of the value estimate,the attainment of a stipulated result,or the occurrence of a subsequent event. (3) This appraisal assignment was not based on a requested minimum valuation,a specific valuation,or the approval of a loan. ® ENVIRONMENTAL LIMITING CONDITIONS The appraiser's opinion of value is based on the assumption that the property is not negatively affected by the existence of hazardous substances or detrimental environmental conditions unless otherwise stated in this report, The appraiser is not an expert in the identification of hazardous substances or detrimental environmental conditions.The appraiser's routine inspection of and Inquiries about the subject property did not develop any information that indicated any apparent significant hazardous substances or detrimental environmental conditions which would affect the property negatively unless otherwise stated in this report. It is possible that tests and Inspections made by a qualified hazardous substance and environmental expert would reveal the existence of hazardous substances or detrimental environmental conditions on or around the property that would negatively affect its value. ® HIGHEST&BEST USE ANALYSIS Analysis/Comments: The current use is a representation of the highest and best use as vacant and improved. O As Vacant: O As Improved: ® EFFECTIVE DATE OF APPRAISAL (if not current,see comments). This appraisal report reflects the following value: ® Current ❑ Retrospective ❑ Prospective Effective Date of the Appraisal: 01/24/2018 Comments on the Effective Date ❑ ADDITIONAL COMMENTS ® APPRAISER'S SIQ#ATUR SE/CERTIFICATION Appraiser's Signature Inspection Date 01/24/2018 Signed Date 0 310 1/201 9 Appraiser's Name Gregg Palmlar Phone# 559.226.5020 State CA ❑License or ®Certification# AGO02880 Exp.04/24/2020 Tax ID# ❑Appraiser is certified under the following CE program(s). ® CO—SIGNING APPRAISER'S CERTIFICATION O The co-signing appraiser has personally inspected the subject property,both inside and out,and has made an exterior inspection of all comparable sales listed in the report.The report was prepared by the appraiser under direct supervision of the co-signing appraiser.The co-signing appraiser accepts responsibility forlhe contents of the report including the value conclusions and the limiting conditions,and confirms that the certifications apply fully to the co-signing appraiser. O The co-signing appraiser has not personally inspected the interior of the subject property and: O has not inspected the exterior of the subject property and all comparable sales listed in the report. O has Inspected the exterior of the subject property and all comparable sales listed in the report. O The report was prepared by the appraiser under direct supervision of the co-signing appraiser.The co-signing appraiser accepts responsibility for the contents of the report,including the value conclusions and the limiting conditions,and confirms that the certifications apply fully to the co-signing appraiser with the exception of the certification regarding physical inspections.The above describes the level of inspection performed by the co-signing appraiser. O The co-signing appraiser's level of inspection,involvement in the appraisal process and certification are covered elsewhere in the addenda section of this appraisal. ® CO-SIGNING APPRAISER'S SIGNATURE&LICENSE/CERTIFICATION Co-Signing Appraiser's Signature Inspection Date 04/16/2014 Signed Date Co-Signing Appraiser's Name Phone# State ❑License or ❑Certification# Exp. Tax ID# ❑Co-Signing Appraiser is certified under the following GE program(s): Page 3 of 3 Form MPA4-"TOTAL"appraisal software by a la mode,Inc.-1.800-ALAMODE Subject Photo Page Client Fresno Housing Authority Property Address 4041 Plaza Dr W City Fresno County Fresno State CA Zip Code 93702 Owner Fresno Housing Authority Subject 4041 Plaza Dr W Sales Price 0 Gross Building Area _ Age 120 60 30 A 1970 Subject IF .i w' Subject Form PICPIX.SR-"TOTAL"appraisal software by a la mode,inc.-1-800-ALAMODE Subject Photo Page Client Fresno Housing Authority Property Address 4041 Plaza Dr W ��S' Fresno County Fresno State CA Zip Code 93702 Owner Fresno Housing Authority Subject 4041 Plaza Dr W Sales Price 0 Gross Building Area 24,03E Age 1970 I • �.- ,� Subject J 1 7 _ Subject Street Form PICPIX.SC-"TOTAL"appraisal software by a la mode,inc.-1-800-ALAMODE Building Plans - Page I ZOLC6 VO'ONS3Md IS3M 3AIMCII VZV'Id LVOV o:E Q SIN3WI2111dV RO"MM VZVI d C) UJ 0 C:) z 0— �31 iD 0 LU iA LIJ Ui Z f 0f 0 0 IL Form SCNLGL-'TOTAL"appraisal software by a la mode,ho.-1-800-ALAMODE Building Plans - Page 2 ZOLM V3'0NS3N:J 04 1S3M MUM VZVId ttOV SIN3WIHVdV 33VIdN31 VZV d -------L J ------------------I jN WA Jfl 7 MUM w J 4L=I� ng It Form SCNLGL-"TOTAL"appraisal software by a la mode,inc.-1-800-ALAMODE Building Plans - Page 3 ■ ZOLE6 VD'ONS3U-q Q < IS3M 3AINCII VZVId �VOI? n C14 d SIN3W,LNVdV a3V'dH31 VZVI RM, I Form SGNLGL-'TOTAL"appraisal software by a la mode,inc.-1-800-ALAMODE Building Plans - Page 4 Pei Zotss VD'0NS3a� f 1S3M 3ARIa dZV-1d 6bOtr G u S�N3Wl21ddt/3011aa31 dZ did I � i i• i• \ a $ / 1 " � 3 I� N Z ----- r1 _ t Form SCNLGL-"TOTAL"appraisal software by a la mode,inc.-1-800-ALAMODE Building Plans - Page 5 ZOM VO'ONS98-A pal' 1S3M 3AIM0 VZV'ld 440111 1,2 < 0 < P S1N3W11JVdV aOVNH31 VZV-1d Form SCNLGL-"TOTAL"appraisal software by a la mode,inc.-1-800-ALAMODE Building Plans - Page 6 i ZOL£6 VD`ONS3Nd z o psi . �s J 1S3M 3AIMU VZV-1d 41701' °g Q PP,' S1N3WIMVdV 33b21a31 VZV1 12 ,Tt i i- , , , 1LU I ,�zw. , c� i , i }' _ �l \ \, M Form SCNLGL-"TOTAL"appraisal software by a la mode,!no.-1-800-ALAMODE Building Plans - Page 7 i i psi k' 3+ ZOL£6 VO`ONS3ad 3 z o 1S3M 3n1214 VZV-1d L40t' E o q cJ SiN3W11JVdtl 3O"H31 VZb'ld r U J `v I y V r A—AL ® I 4'-1 --d � -.afit9• I SII 41 ' C �.ea,.. �•r . f -t eer-.e 1 1 IJ i (1 I I 1.., La ' —Ivan® -z• fi 0 l A � ' • c 'o i Form SGNLGL-"TOTAL"appraisal software by a la mode,!no,-1-800-ALAMODE Building Plans - Page 8 �[a ZOLC6 VD'ONSM1=11 02 C) 1S3M 3AINa VZV1d 11,V017 9 C6 0 d SIN31NINVdV 30VUH31 VZV1 Fz V LLL I HLl O tt F1 A�17 I--- Form SCNLGL-'TOTAL"appraisal software by a[a made,!no.-1-800-ALAMODE Building Plans - Page 9 s ZOLE6 tlD bNS3ad ? o N l<<j 1SSM 3Alao tl2tlld Mt, ° cri S1N3W12ltldtl 30tla2i31 tlZtllpsi d m w i i I t- F F1 - ----- J Form SGUL-"TOTAL"appraisal software by a la mode,inc.-1-S00-ALAMOOE Building Plans - Page 10 d: zo cgs e3'oNs3ad 3 w go ■ ' I' 1S3M 3Awa VZV Id LtiOh o 9 a r 0 a S1N3Wi*dVdV 30VUU31 VZ`dld I i C t R 99 8 El a 8 � m t 8 8 L.9 01 Form SCNLOL-"TOTAL"appraisal software by a la mode,!no.-1-800-ALAMODE Assessment Data DETAIL REPORT Property Address: FRESNOCA93702 Ownership Parcel#(APN): 454-295-09T Parcel Status: Owner Name: FRESNO CITY HOUSING AUTHORITY Mailing Addr: Legal Description: Assessment Total Value: Use Code: Use Type: Land Value: Tax Rate Area: 005-912 Zoning: Impr Value: Year Assd: Census Tract: 25.02/3 Other Value: Property Tax: Price/SgFt: %Improved: 0% DelinquentYr: Exempt Amt: HO Exempt: N Sale History Sale1 Sale2 Sale3 Transfer Recording date: Recording Doc: Doc type: Transfer Amount: Seller(Grantor): - Property Characteristics Bedrooms: Fireplace: Units: Baths(Full): A/C: Stories: Baths(Half): Heating: Quality: Total Rooms: Pool: Building Class: Bldg/Liv Area: Park Type: Condition: Lot Acres: Q680 Spaces: Site influence: Lot SgFt: 29,620 Garage SgFt: Timber Preserve: Year Built: Bsmt SgFt: N/A Ag Preserve: Effective Year: Pagel GaR us 8W217-899g Visit us:www Paroei0uestoom 'The information provided here is deemed reliable,but is not guaranteed. 02019 PamerOusat Form SCNLGL-"TOTAL"appraisal software by a la mode,loc.-1-800-ALAMODE Soils Data - Page 1 PARCELQUEST `. SOILS REPORT FRESNOCA93702 + 25 x s y r { ' , erc s zduttUc L^i Wn.r, n _ C J �t r !j n I Minot r ���w' �tru�n Manuum ca mminm w�...n Page 1 Call us 88&217�8999 Visa us:WWW.Par0B10Ues1.0om —Theintormalton provided here is deemed reliable,but is not guaranteed. Q20.19 Parcelouest Form SCNLGL-"TOTAL"appraisal software by a la mode,inc.-1-800-ALAMODE Soils Data - Page 2 SOILS REPORT FRESNO CA 93702 '< USDA Soils Legend Symbol Name Slope Irr,Cap, Non-Irr. Stone Acres Parcel% Grade Class Cap.Class Index OGtA Greenfield sandy loam,0to 3percents lopes 2 1 4 90 .776 100.00 Total Acres: .776 Page 2 Cali us 8W217-8999 Wit us:www.Paroalouest.00m -TAe Information provided Irene is deemed reliable,but Is not guaranteed. 0 2019 Pamelouest Form SCNLGL-"TOTAL"appraisal software by a la mode,Inc.-1-800-ALAMODE Plat Map uois SUBDIVIDED LAND 1N POR.SEC.36,T.13 S.,R.20 E.,M.D.B.&M. T8X Rare aaa 454-29 ' ixee m w•uei G eiPo� //"",� 5-91x w�wm pn'uewimi \J 5-sn , -+- W vrin➢�'emRiaM w. ,e �, in€ ,LL,a. � i•.,Po• s'S 4n II l— z 292 xs '9'Ne �m a E. TURNED ,rPo a LrX (4 �(P im ° (2J F Oo x° °�f51 n. A m� .J1 , AVE,e P Q rro fox r foi� ,ros e� s roe'__ fon ne e -- ti ezoo ,rwm eve e �� �• u,w ,n w ,r � r e 51•„ s rxa F e„r 50 e p ` w. �q.-.z•b, rox s 3'2 P'J' s 5s''i of Q o(�Q, 4.b04 no`< C. e, of O 6 4,'m 2 f;F.i•'`J 93 ue`J :t1 Fi E,Po fi iBe r,8 5 296 .eih� lir 51 a' °E. WHITE Fi d •t r OQ a AVE.d , C$ e' - ea a T9 fas0 96 Ry — i`EJI I F, ..�I is 5. ,Fy y 1 ri.�_�u.,k fir: � . i 1 �•y 1 , f� ,. ( IIIIL— g I� „1.. ..l..c ;a E�sII�S�6 � ice^ �� �... •-�.^_�nl�l a1F_��_ {e f� --i .ema u,r,-st. wLa E.BELMONT G AVE. a= 08 \ew f Belmont Center-Plat Bk.13,Pg.11 I w -'{- Salinger Tract-Plat Bk.2,Pg.13 wy 460JAssessor's Map Bk,454 -Pg.29 County of Fresno, Cali/. = N07E-AssassoYs Block Numbers Shown In EMpses. oaw,ui Asseesa/s Parcel Numbers Shown in Circles, Form SCNLOL-"TOTAL"appraisal software by a la mode,Inc.-1-800-ALAMODE Aerial Map Client Fresno Housing Authority Property Address 4041 Plaza Dr W City Fresno County Fresno State CA Zip Code 93702 Owner Fresno Housing Authority a la mode,inc, a f�m awta neN4 InT.M}IY a �r Y` 9 SUBJECT 4041 Plaza or VV Fresno,CA 93702 a t Form MAP.LOC-"TOTAL"appraisal software by a la made,Inc.-1-800-ALAMODE Comparable Photo Page Client Fresno Housing Authority Property Address 4041 Plaza Dr W coy Fresno County Fresno State CA Zip Code 93702 Owner Fresno Housing Authorit Comparable 1 4880 E University Ave �, 1r Prox.to Subject 1.71 miles NE Sale Price 1,150,000 Gross Living Area v Total Rooms 64 t E Total Bedrooms 32 Total Bathrooms 32 � c Location Fresno View Average - �` Site 9,426 Sq.Ft. Quality Average s Age 1970 Comparable 2 3998 E Saginaw Way Prox.to Subject 2.57 miles N Sale Price 1,600,000 1 Gross Living Area Total Rooms 77 r� Total Bedrooms 33 Total Bathrooms 22 Location Similar View Average Site 8,712 SF 4 s Quality Average Age 1972 JL Comparable 3 ths; 3935 N Effie St Prox.to Subject 3.16 miles NW Sale Price 2,450,000 i Gross Living Area Total Roams 153 Total Bedrooms 69 Total Bathrooms 42 Location Similar View Average Site 8,712 SF Quality Average __. ... Age 1962 Form PICHUR-"TOTAL"appraisal software by a la made,inc.-1.800-ALAMODE Rental Photo Page Client Fresno Housing Authorit Property Address 4041 Plaza Dr W City Fresno County Fresno State CA Zip Code 93702 Owner Fresno Housing Authority Rental '1 920 W Griffith Way Proximity to Subj. 4.56 miles NW GBA 15,500 Age/Year Built 1974 MI r �r Rental 2 3880 N Fruit Ave [ PrOXlmlty t0 Subj. 4.19 miles NW GBA 11,040 Age/Year Built 1986 3r s - r Rental 3 853 E Hedges Ave Proximity to Subj. 2.46 miles W GBA 40,384 Age/Year Built 1950 x y, y ri> Form DLSTRNT.DS$C-"TOTAL"appraisal software by a la mode,inc.-1-800-ALAMODE Comparable Market Data Client Fresno Housing Authority Property Address 4041 Plaza Dr W City Fresno County Fresno State CA Zip Code 93702 Owner Fresno Housing Authority Z a la mode, inc m Aar.u�.F�rat�rvn:;+aav A.venua 12 '. _ z is Rolling}!ills f C-jipl;Ave Gordon q `? F Ave AV- 2 - H%�6iAh'n E It > O W 11orAnn Ave W Ft�=r)don Ave COMPARABLE No.3 IfIlIM11 AV, E Nan 3935 N Effie St z, RENTAL No.1 1=rAsno,CA 93726 i 3.16 miles NW =CA93726 Au 920 W Griffith Way r,. Fresno,CA'93705 w vt ;ir„ 4.56 miles NW ,t,Are vAv� ?+5_„i+ry fair v, - 3UM 4v'il r3nlvaC.�" p ��/iustatel WA-'`en e : flu C�C#�! ,.,e. fP:'san P.ve nsd>i>er� PPslrinn Ao-a .ti fA z ux Tarpey :.. � C�h,rlJs At � � EireeLs W Ci,rnan,4V* � E RENTAL No.2 COMPARABLE No.1 3880 N Fl ult Ave ' -1 0 E Uhlverslty Ave yr A4e r ��� Fresno,CA 93703 i lnanr ahe _ Fresno,CA 93705, 3,71 m11.NE 4.19 miles NW ``,..I teo �,s a u ---iota" _SUBJECT u itENTAL No.3 4041 Plaza Dr W z WeA Park 853 E Hodges Ave Fresno,CA 93702 ref1 FI`osno,c-A,93728 Calwa `tew7—n w Mattel E1— 1Avn 2.46 miles W Cecile i Malaga Ecsnuol,gsY ^ - w;Amzr .Avc r Ameii;a AVI= EAnic can Ave Easton ' AsI+R. Oleander - - fowler a'km .tL'xn T=y Form MARLOC-"TOTAL"appraisal software by a la made,inc.-1-800-ALAMODE ENVIRONMENTAL ADDENDUM APPARENT*HAZARDOUS SUBSTANCES AND/OR DETRIMENTAL ENVIRONMENTAL CONDITIONS File#9150 Client Fresno Housing Authorit Property Address 4041 Plaza Dr W City Fresno County Fresno State CA Zip Code 93702 Owner Fresno Housing Authority *Apparent is defined as that which is visible,obvious,evident or manifest to the appraiser, This Environmental Addendum is for use with any real estate appraisal. Only the statements which have been marked by the appraiser apply to the Subject prope ty. This addendum reports the results of the appraiser's routine viewing of and inquiries about the subject property and'its surrounding area. It also states what assumptions were made about any observed evidence of any hazardous substances and/or detrimental environmental conditions. The appraiser Is not an expert environmental inspector and therefore might be unaware of existing hazardous substances and/or detrimental environmental conditions which may have a negative effect on the safety or value of the property. It is possible that tests and inspections made by a qualified environmental inspector would reveal the existence of hazardous materials and/or detrimental environmental conditions on or around the property that would negatively affect As safety and value. DRINKING WATER ® Drinking water is supplied to the subject from a municipal water supply which is considered safe.However,the only way to be absolutely certain that the water meets published standards is to have A tested at all discharge points, ❑ Drinking water is supplied by a well or other non-municipal source.It is recommended that tests be made to be certain that the property is supplied with adequate drinking water. ® Lead can get into drinking water from its source,the pipes,at all discharge points,plumbing fixtures and/or appliances.The only way to be certain that water does not contain an unacceptable lead level is to have it tested at all discharge points. ® The opinion of value is based on the assumption that there is an adequate supply of safe,lead-free drinking water. Comments: SEWER SYSTEM ® Sewage is removed from the property by a municipal sewer system. ❑ Sewage is disposed of by a septic system or other sanitary on-site waste disposal system.The only way to determine that the disposal system is adequate and in good good working condition is to have it inspected by a qualified inspector. ® The opinion of value is based on the assumption that the sewage is disposed of by a municipal sewer or an adequate properly permitted alternate treatment system in good condition. Comments: SOIL CONTAMINANTS ® There are no apparent signs of soil contaminants on or near the subject property(except as stated in Comments,below). It is possible that research,Inspection and testing by a qualified environmental inspector would reveal existing and/or potential hazardous substances and/or detrimental environmental conditions on or around the property that would negatively affect its safety and value. ® The opinion of value is based on the assumption that the subject property is free of soil contaminants. Comments: ASBESTOS ® All or part of the improvements were constructed before 1979 when asbestos was a common building material.The only way to be certain that the property is free of friable and non-friable asbestos is to have it Inspected and tested by a qualified asbestos inspector. ❑ The improvements were constructed after 1979.No apparent friable asbestos was observed(except as stated in Comments,below). ® The opinion of value is based on the assumption that there is no uncontained friable asbestos or other hazardous asbestos material on the property. Comments: PCBs POLYCHLORINATEDIBIPHENYLS ® There were no apparent leaking fluorescent light ballasts,capacitors or transformers anywhere on or nearby the property(except as stated in Comments,below). ® There was no apparent visible or documented evidence known to the appraiser of soil or groundwater contamination from PCBs anywhere on the property(except as reported in Comments below). ® The opinion of value is based on the assumption that there are no uncontained PCBs on or nearby the property. Comments: RADON ® The appraiser is not aware of any radon tests made on the subject property within the past 12 months(except as stated in Comments,below). ® The appraiser is not aware of any indication that the local water supplies have been found to have elevated levels of radon or radium. ® The appraiser is not aware of any nearby properties(except as stated in Comments,below)that were or currently are used for uranium,thorium or radium extraction or phosphate processing. ® The opinion of value is based on the assumption that the Radon level is at or below EPA recommended levels. Comments: Form 691`2-"TOTAL"appraisal software by a la mode,inc.-1-800-ALAMODE USTs`UNDERGROUND STORAGE TANKS ® There is no apparent visible or documented evidence known to the appraiser of any USTs on the property nor any known historical use of the property that would likely have had USTs. ® There are no apparent petroleum storage and/or delivery facilities(including gasoline stations or chemical manufacturing plants)located on adjacent properties(except as reported in Comments below). ❑ There are apparent signs of USTs existing now or In the past on the subject property.It is recommended that an inspection by a qualified UST inspector be obtained to determine the location of any USTs together with their condition and proper registration if they are active;and If they are inactive,to determine whether they were deactivated in accordance with sound industry practices. ® The opinion of value Is based on the assumption that any functioning USTs are not leaking and are properly registered and that any abandoned USTs are free from contamination and were properly drained,filled and sealed. Comments: NEARBY HAZARDOUS WASTE SITES ® There are no apparent hazardous waste sites on the subject property or nearby the subject property(except as stated in Comments,below).Hazardous Waste Site search by a trained environmental engineer may determine that there is one or more hazardous waste sites on or in the area of the subject property. ® The opinion of value is based on the assumption that there are no hazardous waste sites on or nearby the subject property that negatively affect the value or safety of the property. Comments: UREA FORMALDEHYDE INSULATION"UFFI ® All or part of the improvements were constructed before 1982 when urea foam insulation was a common building material.The only way to be certain that the property is free of urea formaldehyde is to have it inspected by a qualified urea formaldehyde inspector. ❑ The improvements were constructed after 1982.No apparent urea formaldehyde materials were observed(except as stated in Comments,below). ® The opinion of value is based on the assumption that there Is no significant UFFI insulation or other urea formaldehyde material on the property. Comments: LEAD BASED PAINT ® All or part of the improvements were constructed before 1978 when lead based paint was a common building material.There is no apparent visible or known documented evidence of peeling or flaking Lead Paint on the floors,walls or ceilings(except as stated in Comments,below).The only way to be certain that the property is free of surface or subsurface lead based paint is to have it inspected by a qualified Inspector. ❑ The improvements were constructed after 1978,No apparent Lead Paint was observed(except as stated in Comments,below). ® The opinion of value is based on the assumption that there Is no flaking or peeling Lead Paint on the property. Comments: AIR POLLUTION ® There are no apparent signs of air pollution at the time of the appraiser's viewing of the subject property,nor were any reported(except as reported in Comments, below).The only way to be certain that the air is free of pollution is to have it tested. ® The opinion of value is based on the assumption that the property Is free of air pollution. Comments: WETLANDS/FLOOD PLAINS ® The site does not contain any apparent wetlands/flood plains(except as stated in Comments,below).The only way to be certain that the site is free of wetlands/ flood plains is to have it inspected by a qualified environmental professional. ® The opinion of value is based on the assumption that there are no Wetlands/Flood Plains on the property(except as stated in Comments,below). Comments: MISCELLANEOUS ENVIRONMENTAL HAZARDS ❑ There are no other apparent hazardous substances and/or detrimental environmental conditions on or In the area of the site except as indicated below: ❑ Excess noise ❑ Radiation and/or electromagnetic radiation ❑ Light pollution ❑Waste heat ❑ Acid mine drainage ❑ Agricultural pollution ❑ Geological hazards ❑ Nearby hazardous property ❑ Infectious medical wastes ❑ Pesticides ❑ Other(chemical storage,drums,pipelines,etc.) ❑ The opinion of value Is based on the assumption that,except as reported above,there are no other environmental hazards that would negatively affect the value of the subject property. When any of the environmental assumptions made in this addendum are not correct,the opinion of value In this appraisal may be affected. 03/10 Form 691`2-"TOTAL"appraisal software by a la made,Inc.-1-800-ALAMODE 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 casts 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 he 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 an the appraiser's judgement. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the ffile 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 a 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 has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees,express or implied,regarding this determination. 4. 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. 5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value. 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, 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, 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, express 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. 7. 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. 8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 9. The appraiser 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. 10. 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 property description section of the report only 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. Freddie Mac Farm 439 6-93 Page 1 of 2 Fannie Mae Form 1004B 6-93 James G.Palmer Appraisals,Inc. Form ACR-"TOTAL"appraisal software by a la mode,Inc.-1-800-ALAMODE APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: 1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those 'items of significant variation. If a significant item in a comparable property is superior to, or more favorable than,the subject property, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, If a significant item in a comparable property is inferior to,or less favorable than the subject property, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. 1 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 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. 3. 1 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. 4. 1 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. 5. 1 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. 6. 1 was not required to report a predetermined value or direction in value that favors the cause of the client or any related parry,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 an a requested minimum valuation,a specific valuation,or the need to approve a specific mortgage loan. 7. 1 performed this appraisal 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, with the exception of the departure provision of those Standards,which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconciliation section. 8, 1 have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables 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 and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property. 9. 1 personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on significant professional assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such indivldual(s) and disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to perform the tasks. 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 ft. 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 reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 4 through 7 above,and am taking full responsibility forthe appraisal and the appraisal report. ADDRESS OF PROPERTY PRAISED: 4041 Plaza Dr W Fresno CA 93702 APPRAISER: SUPERVISORY APPRAISER(only if required): Signature: Signature: Name: Greqq Palmer Name: Date Signed: 03/01/201 Date Signed: State Certification#: AGO02880 State Certification#: or State License#: or State License#: State: CA State: Expiration Date of Certification or License: 04/24/2020 Expiration Date of Certification or License: ❑Did ❑ Did Not Inspect Property Freddie Mac Form 439 6-93 Page 2 of 2 Fannie Mae Form 1004B 6-93 Form ACR-"TOTAL"appraisal software by a la made,inc.-1-800-ALAMODE I Baker Manock &Jensen PC ATTORNEYS AT LAW Kenneth J. Price Attorney at Law kprice t@bskennanock,com Fig Garden Financial Center 5260 North Palm Avenue Fourth Floor January 25, 2019 Fresno,California 93704 Tel:559.432.5400 Fax;559.432.5620 wwwbakermanock.com Mr. Ben Metcalf, Director Department of Housing and Community Development 2020 West El Camino Avenue Suite 500 Sacramento, California 95833 Re: Plaza Terrace Housing Development- Fresno, CA Article XXXIV Compliance Dear Mr. Metcalf: i This firm serves as legal counsel for the Housing Authority of the City of Fresno ("Housing Authority"), which intends to develop and rehabilitate 28 living units in an existing complex in the City of Fresno, which will also feature community and office spaces (hereinafter, the "Project"). The Project will consist of replacement and/or repairing of floors,windows, paint, appliances, and HVAC systems. The Project will be located on what is now an approximately .75-acre lot located at 4041 Plaza Drive West, Fresno, California 93702, My office has been asked to render a legal opinion on whether the Project is in compliance with Article XXXIV of the California Constitution. As explained below, it is our opinion that the City of Fresno possesses sufficient Article XXXIV authority to accommodate the Project. The California Constitution California Constitution,Article XXXIV ("Article XXXIV"), Section 1 states: No low rent housing project shall hereafter be developed, constructed, or acquired in any manner by a state public body until, a majority of the qualified electors of the city, town or county, as the case may be, in which it is proposed to develop, construct, or 1 2298021v1/18621.0001 Mr. Ben Metcalf January 25, 2019 Page 2 acquire the same,voting upon such issue, approve such project by voting in favor thereof at an election to be held for that purpose or at any general or special election. For the purposes of this Article the term "low rent housing project" shall mean any development composed of urban or rural dwellings, apartments or other living accommodations for persons of low income, financed in whole or in part by the Federal Government or a state public body or to which the Federal Government or a state public body extends assistance by supplying all or part of the labor, by guaranteeing the payment of liens, or otherwise. For the purposes of this Article only there shall be excluded from the term "low rent housing project" any such project where there shall be in existence on the effective date hereof, a contract for financial assistance between any state public body and the Federal Government in respect to such project. For the purposes of this Article only "persons of low income" shall mean persons or families who lack the amount of income which is necessary(as determined by the state public body developing, constructing, or acquiring the housing project)to enable them, without financial assistance,to live in decent, safe and sanitary dwellings,without overcrowding. For the purposes of this Article the term "state public body" shall mean this State, or any city, city and county, county, district, authority, agency, or any other subdivision or public body of this State. For the purposes of this Article the term "Federal Government" shall mean the United States of America, or any agency or instrumentality, corporate or otherwise, of the United States of America. In determining whether Article XXXIV is applicable in any given case, we must examine the particular facts of each case to ascertain whether or not the project in question is in fact a "low rent housing project" and, if so, whether it is in fact being "developed, constructed or acquired in any manner by any state public body.il These factors contribute to the analysis of whether or not Article XXXIV applies to a project. I am informed by the Housing Authority that the Project will indeed constitute a"low rent housing project." Moreover, Housing Authority 164 Ops.Cal,Atty.Gen.622(1981). 2298021v1(18621,0001 i i Mr. Ben Metcalf 1 January 25, 2019 Page 3 intends, as the administrative general partner of a limited partnership and in its capacity as a public body of the State of California, to be the principal developer of the Project. Article XXXIVAuthority According to a memorandum(the "Memorandum") dated July 1, 1985, by the then California Business,Transportation, and Housing Authority,in 1972 and later in 1979, voters in the City of Fresno, where the Project is located, approved 800 and 1,000 units respectively,for a total of 1,800 units to be used for affordable housing. As of the date of the Memorandum, 1,596 of the 1,800 units approved were available. Attached to this letter, as Exhibit "A," is the Memorandum. Attached to this letter, you will also find as Exhibit "B," an accounting provided to me by the Housing Authority of low income housing units that would qualify under Article XXXIV. This accounting indicates that,using even the most conservative estimate of Article XXXIV authority with the Project factored into the total number,there are 646 qualifying low income housing units in the City of Fresno of the 1,596 units, leaving a balance of 950 remaining. As mentioned,the Project would add an additional 28 income-restricted units into the City's inventory of low income housing units. If these units are counted towards that inventory, there would be a balance of 922 units left within the City of Fresno of Article XXXIV 1 housing.' i Conclusion Based upon the foregoing and subject to the limitations, qualifications and exceptions set forth herein, we conclude that,based upon the schedule attached to this letter, the 1 Project would not cause the City of Fresno to exceed its Article XXXIV authority. This letter is rendered only to the Department of Housing and Community Development in connection with outstanding funding applications for funding submitted by the Housing Authority to develop the Project. This letter may not be relied upon by any other person, firm, or corporation for any purpose without our prior written consent. The analysis expressed herein may be affected by actions taken or events occurring after the date hereof. The undersigned has not undertaken to determine or to inform any person whether any such subsequent actions or events are taken or occur. z The Housing Authority has informed this office that it is planning to submit applications,concurrently with the submission of the application for the Project that is the subject of this letter, for funding for two additional projects,one to include 42 units of additional low income housing and one to include 26 such units, which together could total 68 units of additional low income units(the Blackstone&Barstow Project and the Econo Inn Project, respectively). 2298021v1118621,0001 Mr. Ben Metcalf January 25, 2019 Page 4 Please do not hesitate to contact Kenneth Price if you have any questions. Sincerely, ` t et 1'. ce BAKER MANOCK&JENSEN,PC lcpt•ice hakermanock,com Carl R.ReAtcrzo BAKER MANOCK&JENSEN, PC creflterzo@bakerthanack.coii CWA/KJP:sdg Attachments: r Exhibit"A" Exhibit"B" cc Fresno Housing Authority z_ 1 1 2298021vi/18621.0001