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HomeMy WebLinkAbout2026/04/21 Post Agenda Packet Date:Tuesday, April 21, 2026, 5:00 p.m. Location:Council Chambers, 276 Fourth Avenue, Chula Vista, CA REGULAR CITY COUNCIL AND SPECIAL HOUSING AUTHORITY MEETING Notice is hereby given that the Mayor has called and will convene a special meeting of the Housing Authority meeting jointly with the City Council at the time and location stated on this agenda Watch live in English and Spanish: chulavistaca.gov/councilmeetings or Cox Ch. 24 (English only). Free Spanish interpretation is available on-site. _______________________________________________________________________________________ In-Person Public Comments: Submit a request to speak to City Clerk staff before the close of the public comment period on an item or before the close of the general Public Comment period for non-agenda items. Electronic Public Comments: At chulavistaca.gov/councilmeetings, locate the meeting and click the comment bubble icon. Select the item and click "Leave Comment." You may also email cityclerk@chulavistaca.gov. eComments, emails, and other written comments must be received by the day of the meeting at noon for a regular meeting or three hours before the start time for a special meeting. Watch Live or Recorded (English and Spanish): Visit chulavistaca.gov/councilmeetings. Click "ES" at the bottom to switch to Spanish. Closed captioning is available in both languages. Accessibility: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at cityclerk@chulavistaca.gov or (619) 691- 5041. Providing at least 48 hours' notice will help ensure that reasonable arrangements can be made. Gov. Code § 84308 Regulations: To promote transparency and fairness in the governmental decision-making process, there are rules to prevent public officials from being unfairly influenced by contributors to their campaigns. The type of activity these laws were enacted to limit is often referred to as “pay-to-play,” and is governed in California by Government Code section 84308. Parties to any proceedings involving a “license, permit, or other entitlement for use,” as that term is defined in the Political Reform Act, pending before the City Council must disclose any campaign contribution over $500 (aggregated) within the preceding 12 months made by the party, their agent, and those required to be aggregated with their contributions under Gov. Code § 82015.5. The disclosure must include the amount contributed and the name(s) of the contributor(s). "G.C. § 84308 Regulations Apply: Yes" on this agenda indicates that the item is subject to these regulations. PUBLIC PARTICIPATION Complete Agenda Packet: The agenda packet, including staff reports, draft resolutions and ordinances, and other backup materials, is available at chulavistaca.gov/councilmeetings or the City Clerk's Office. Time Allotted for Speaking (subject to change by the presiding officer) - Consent Calendar (any or all items): 3 minutes - Agenda Items (not on Consent): 3 minutes - General Public Comment (not on agenda): 3 minutes Individuals who use a translator will be allotted twice the time. General Public Comments: Twenty-one (21) minutes are scheduled near the beginning of the meeting. The first seven (7) speakers will be heard during the first Public Comment period. If additional speakers are registered, they will be heard during the continued Public Comment period. If all registered speakers present at the time address the City Council during the first Public Comment period, there will be no continued period. Submitting Request to Speak: A request to speak must be submitted to the City Clerk before the close of the public comment period on an item or before the close of the general Public Comments for non-agenda items. GETTING TO KNOW YOUR AGENDA AGENDA SECTIONS Consent Calendar items are routine items that are not expected to prompt discussion. All items are considered for approval at the same time with one vote. Before the vote, there is no separate discussion of these items unless a member of the City Council or staff removes the item from the Consent Calendar. Public Comment provides an opportunity to address the City Council on any matter not listed on the agenda that is within the jurisdiction of the City Council. Under the Brown Act, the City Council cannot take action on matters not listed on the agenda. Public Hearings are held on matters specifically required by law. Action Items are items expected to cause discussion and/or action by the City Council but do not legally require a public hearing. Closed Session may only be attended by members of the City Council, support staff, legal counsel, and others specified on the agenda. Closed session may be held in very limited circumstances as authorized by law. CITY COUNCIL ACTIONS Resolutions are formal expressions of opinion or intention of the City Council and are usually effective immediately. Ordinances are laws adopted by the City Council. Ordinances usually amend, repeal, or supplement the Municipal Code; provide zoning specifications; or appropriate money for specific purposes. Most ordinances require two hearings and go into effect 30 days after the final approval. Proclamations are issued by the City to honor significant achievements by community members, highlight an event, promote awareness of community issues, and recognize City employees. City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 2 of 727 Pages 1.CALL TO ORDER 2.ROLL CALL 3.PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE 4.SPECIAL ORDERS OF THE DAY 4.1 Presentation of a Proclamation Recognizing SEIU 221 - Represented MAAC Project Employees 4.2 Presentation of a Proclamation Proclaiming April as Arts, Culture, and Creativity Month in the City of Chula Vista 11 5.CONSENT CALENDAR (Items 5.1 through 5.7) Consent calendar items are considered together and acted upon by one motion. There is no separate discussion of these items unless the Mayor or a City Councilmember removes the item from the consent calendar. Items removed from the consent calendar will be heard as action items. RECOMMENDED ACTION: City Council approve the recommended action on the below consent calendar items. 5.1 Approve Meeting Minutes 24 RECOMMENDED ACTION: Approve the minutes dated: April 14, 2026 5.2 Waive Reading of Text of Resolutions and Ordinances RECOMMENDED ACTION: Approve a motion to read only the title and waive the reading of the text of all resolutions and ordinances at this meeting. 5.3 Citywide Holiday Renaming: Adopt an Ordinance Renaming Cesar Chavez Day to Farmworkers Day 34 Report Number: 26-0146 Location: No specific geographic location Departments: Human Resources & City Manager G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. RECOMMENDED ACTION: Adopt an ordinance amending Chapter 10.08 (Definitions for Vehicles and Traffic) and Chapter 12.50 (Temporary Placement Of Signs In Designated Portions Of The Public Rights-Of-Way) of the Chula Vista Municipal Code to replace Cesar Chavez Day with Farmworkers Day. (Second Reading and Adoption) City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 3 of 727 5.4 Housing Authority Policy: Updates to the Chula Vista Housing Authority Multifamily Mortgage Revenue Bond Policies to Comply with the California Debt Limit Allocation Committee 40 Report Number: 26-0094 Location: No specific geographic location Department: Housing and Homeless Services G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (CEQA) Guidelines. Therefore, pursuant to CEQA Guidelines Section 15060(c)(3) no environmental review is required. RECOMMENDED ACTION: Adopt a resolution of the Chula Vista Housing Authority to approve updates to the Chula Vista Housing Authority Multifamily Mortgage Revenue Bond Policies and authorize the Director to make additional minor clerical or administrative changes as needed. 5.5 Grant Acceptance: Accept Grant Funding for the Hazardous Fuels Reduction Program from the California Governor’s Office of Service and Community Engagement/California Volunteers 144 Report Number: 26-0113 Location: No specific geographic location Department: Fire G.C. § 84308 Regulations Apply: No Environmental Notice: The Project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15301 Class 1 (Existing Facilities) and Section 15304 Class 4 (Minor Alterations to Land). RECOMMENDED ACTION: Adopt a resolution accepting grant funds in the amount of $1,499,974.31 from the California Governor’s Office of Service and Community Engagement/California Volunteers #CaliforniansForAll Youth Service Corps Grant to support the Fuels Crew as part of the Hazardous Fuels Reduction Program. City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 4 of 727 5.6 Grant Application and Appropriation: Authorize Submission of an Application for the Fiscal Year 2025 Edward Byrne Memorial Justice Assistance Grant and Appropriate Funds 170 Report Number: 26-0124 Location: No specific geographic location Department: Police G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. RECOMMENDED ACTION: Adopt a resolution authorizing submission of a grant application for the Fiscal Year 2025 Edward Byrne Memorial Justice Assistance Grant, authorizing the City Manager to execute grant documents, and amending the Fiscal Year 2025-26 budget to appropriate grant funds. (4/5 Vote Required) 5.7 Meeting Designation: Designate July 7, 2026 as a Non-Regular Meeting Day Pursuant to Chula Vista Municipal Code Section 2.04.020 179 Report Number: 26-0121 Location: No specific geographic location Department: City Manager G.C. § 84308 Regulations Apply: No Environmental Notice: This activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. RECOMMENDED ACTION: Place an ordinance on first reading designating July 7, 2026 as a non-regular meeting day pursuant to Chula Vista Municipal Code Section 2.04.020 (First Reading). 6.PUBLIC COMMENTS 183 Twenty-one minutes are scheduled for the public to address the City Council for three minutes each on any matter within the jurisdiction of the City Council that is not on the agenda. The remaining speakers, if any, will be heard during the continued Public Comment period. 7.PUBLIC HEARINGS City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 5 of 727 7.1 Annual Military Equipment Report: Accept the Annual AB 481 Military Equipment Report, Review and Renew Ordinance No. 3549, and Amend the Chula Vista Police Department Military Equipment Policy 191 Report Number: 26-0117 Location: No specific geographic location Department: Police G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. RECOMMENDED ACTION: Conduct a public hearing and adopt a resolution: (A) accepting the 2025 Annual AB 481 Military Equipment Report, (B) renewing Ordinance No. 3549, and (C) amending Chula Vista Police Department Military Equipment Policy 714. 7.2 Approve Issuance of Bonds: Approve the Issuance of Tax-Exempt Multifamily Housing Revenue Bonds for the Acquisition, Construction, and Equipping of the Sol Vista Apartments Project and Certain Other Matters Relating Thereto 326 Report Number: 26-0139 Location: Southwest corner of Santa Victoria Road and Santa Diana Road (Village 2) Department: Housing and Homeless Services G.C. § 84308 Regulations Apply: No Environmental Notice: The proposed Project (the “Project”) is adequately covered in the previously adopted Final Supplemental Environmental Impact Report (“FSEIR”) for the Otay Ranch Village Two Comprehensive SPA Plan Amendment (FSEIR 12-01; SCH #2003091012; and incorporated by reference in City Council Resolution No. 2014-207 on November 4, 2014). RECOMMENDED ACTION: Conduct a public hearing and adopt a City Council resolution authorizing the issuance of tax-exempt bonds for the Project pursuant to the Tax Equity and Fiscal Responsibility Act of 1982, as amended (“TEFRA”). 8.ACTION ITEMS 8.1 Consider Items Removed From the Consent Calendar, if Any Consider items removed from the consent calendar by the Mayor or a City Councilmember, if any. If no items were removed from the consent calendar, this item will be withdrawn. City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 6 of 727 8.2 Housing Authority Bond Approval: Approve the Issuance of Tax-Exempt Multifamily Housing Revenue Bonds for the Acquisition, Construction, and Equipping of the Sol Vista Apartments Project and Certain Other Matters Relating Thereto 342 Report Number: 26-0091 Location: Southwest corner of Santa Victoria Road and Santa Diana Road (Village 2) Department: Housing and Homeless Services G.C. § 84308 Regulations Apply: No Environmental Notice: The proposed Project is adequately covered in the previously certified Final Supplemental Environmental Impact Report (FSEIR) for the Otay Ranch Villages Two, Three, and a Portion of Village Four Comprehensive SPA Plan Amendment (FSEIR 12-01; SCH #2003091012; and incorporated by reference in City Council Resolution No. 2014-207 on November 4, 2014). RECOMMENDED ACTION: Adopt a resolution of the Chula Vista Housing Authority authorizing the issuance of up to $14,000,000 in tax-exempt bond obligations for the ninety-six (96) unit Sol Vista Apartments affordable housing development, formerly referred to as Enclave Montecito. 8.3 Park Naming and Council Policy Waiver: Approving Naming of the Future Urban Park at Oxford Street and Fourth Avenue as “Roy Franzen Park” and Waiving City Council Policy No. 470-01 560 Report Number: 26-0120 Location: 391 Oxford Street Department: City Manager G.C. § 84308 Regulations Apply: No Environmental Notice: The proposed action is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. RECOMMENDED ACTION: Adopt a resolution waiving the naming requirements set forth in City Council Policy No. 470-01 and approving the naming of the future urban park at Oxford Street and Fourth Avenue as “Roy Franzen Park.” City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 7 of 727 8.4 Contract Award and CIP Appropriation: Approve a Consultant Services Agreement with Carrier Johnson + Culture for the City of Chula Vista Police Department Facilities Master Planning Effort and Amend the Fiscal Year 2025-26 CIP Budget Accordingly 574 Report Number: 26-0098 Location: No specific geographic location Department: City Manager & Police G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. RECOMMENDED ACTION: Adopt a resolution: 1) Approving a Consultant Services Agreement with Carrier Johnson + Culture for Police Department facilities master planning services for a not-to-exceed amount of $393,815 and 2) Amending the fiscal year 2025-26 Capital Improvement Program (CIP) budget by appropriating funds to the capital improvement project “Police Substation Feasibility Study” (SAF0171) from available fund balance of the Public Facilities Development Impact Fee Fund (4/5 Vote Required). 8.5 City Council Referral: Presentation and Discussion on Potential Amendments to Chula Vista Municipal Code Chapter 5.56 Tobacco Retailer 609 Report Number: 26-0096 Location: No specific geographic location Department: City Attorney, Housing and Homeless Services, & Police G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. RECOMMENDED ACTION: Receive the presentation and community input; receive input on proposed amendments to strengthen Chula Vista Municipal Code Chapter 5.56, Tobacco Retailer; and provide policy direction on options responsive to the referral to reduce the overall number of tobacco retailers in the City of Chula Vista, in the following topic areas: 1) restrict type of retailers; 2) set issuance caps; 3) limit permit proximity; 4) buffer sensitive locations; and 5) establish conditional transfers. City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 8 of 727 8.6 City Boards and Commissions: Place an Ordinance on First Reading Amending the Municipal Code to Implement District-Based Nominations for Certain Boards and Commissions 704 Report Number: 26-0164 Location: No specific geographic location Department: City Clerk & City Attorney G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. RECOMMENDED ACTION: Place an ordinance on first reading amending the Chula Vista Municipal Code to redesignate four seats on the Board of Library Trustees, Charter Review Commission, Sustainability Commission, Traffic Safety Commission, and Veterans Advisory Commission to use a district-based nomination process, one seat per district; require appointees to the district-designated seats on the Traffic Safety Commission to reside in the corresponding district; provide that appointees to the district-designated seats on the other listed bodies are not required to reside in the corresponding district; and clarify that the existing Municipal Code process for the City Clerk to propose reassignment of seat designations for City Council consideration and approval applies when appointment processes are adjusted. (First Reading) 9.PUBLIC COMMENTS (CONTINUED) There will be no continued Public Comment period if all speakers present at the first Public Comment period are heard. 10.CITY MANAGER’S REPORTS 10.1 Emergency Communications Campaign Update 718 11.MAYOR’S REPORTS 12.COUNCILMEMBERS’ REPORTS 13.CITY CLERK'S REPORTS 14.CITY ATTORNEY'S REPORTS 15.CLOSED SESSION Announcements of actions taken in closed session shall be made available by noon on the next business day following the City Council meeting at the City Attorney's office in accordance with the Ralph M. Brown Act (Government Code 54957.7) 15.1 Conference with Legal Counsel Regarding Existing Litigation Pursuant to Government Code Section 54956.9(c) Name of case: Bonita Valley Amateur Girls Softball Association, presented on August 15, 2024 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 9 of 727 15.2 Conference with Legal Counsel Regarding Existing Litigation Pursuant to Government Code Section 54956.9 d(1) Name of case: Michael Hamanaka v Benevolent and Protective Order of Elks of the United States of America, et al., Southern District of California. 26CV1719 LL BJW 16.ADJOURNMENT to the Mayor's State of the City Address on April 28, 2026, at 6:30 p.m. at the Elite Athlete Training Center and then the regular City Council meeting on May 5, 2026, at 5:00 p.m. in the Council Chambers. Materials provided to the City Council related to an open session item on this agenda are available for public review, please contact the Office of the City Clerk at cityclerk@chulavistaca.gov or (619) 691-5041. We encourage community participation - sign up at www.chulavistaca.gov to receive email notifications when City Council agendas are published online. City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 10 of 727 Page 11 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 12 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 13 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 14 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 15 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda FamilyID=Office_ArchiveTorn Page 16 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 17 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 18 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 19 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 20 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 21 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 22 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 23 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda City of Chula Vista Regular City Council Meeting MINUTES Date: Location: April 14, 2026, 5:00 p.m. Council Chambers, 276 Fourth Avenue, Chula Vista, CA Present: Councilmember Chavez, Deputy Mayor Fernandez, Councilmember Inzunza, Councilmember Preciado, Mayor McCann Also Present: City Manager Allen, City Attorney Verdugo, City Clerk Bigelow, Deputy Director of City Clerk Services Turner, Minutes are prepared and ordered to correspond to the agenda. _____________________________________________________________________ 1. CALL TO ORDER The meeting was called to order at 5:01 p.m. 2. ROLL CALL City Clerk Bigelow called the roll. 3. PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE Led by Councilmember Preciado. 4. SPECIAL ORDERS OF THE DAY 4.1 Special Recognition of the 2025-2026 Chula Vista Elementary School District Speech Contest Winners The speech contest winners delivered their speeches, and the Mayor and City Council members congratulated them. 4.2 Presentation of a Proclamation Proclaiming April 24th as Arbor Day in the City of Chula Vista The proclamation was presented. 4.3 Presentation of a Proclamation to Police Communications Systems Manager Kimberly Howard in Recognition of Telecommunications Week in the City of Chula Vista The proclamation was presented. 5. CONSENT CALENDAR (Items 5.1 through 5.8) Item 5.7 was removed from the consent calendar at the request of Councilmember Fernandez. Page 24 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2026-04-14 Regular City Council Meeting Minutes Page 2 The following members of the public spoke regarding various topics:  John Acosta, Chula Vista resident  Cesar Javier Moved by Mayor McCann Seconded by Councilmember Preciado To approve the recommended actions appearing below consent calendar Items 5.1 through 5.6 and 5.8. The headings were read, text waived. The motion was carried by the following vote: Result, Carried (5 to 0) 5.1 Approve Meeting Minutes Approve the minutes dated: March 17, 2026 5.2 Waive Reading of Text of Resolutions and Ordinances Approve a motion to read only the title and waive the reading of the text of all resolutions and ordinances at this meeting. 5.3 Community Benefit Districts: Adopt an Ordinance Adding Chapter 5.14 (Community Benefit Districts) to the Chula Vista Municipal Code Establishing Procedures for the Formation of Community Benefit Districts Adopt an ordinance adding Chapter 5.14 (Community Benefit Districts) to the Chula Vista Municipal Code to establish procedures for the formation of Community Benefit Districts in the City of Chula Vista. (Second Reading and Adoption) Item 5.3 heading: ORDINANCE NO. 3619 OF THE CITY OF CHULA VISTA ADDING CHAPTER 5.14 “COMMUNITY BENEFIT DISTRICTS” TO TITLE 5 OF THE CHULA VISTA MUNICIPAL CODE TO ESTABLISH PROCEDURES FOR THE FORMATION OF COMMUNITY BENEFIT DISTRICTS IN THE CITY OF CHULA VISTA (SECOND READING AND ADOPTION) 5.4 Agreement: Approve a Legal Services Agreement with Best, Best & Krieger LLP for Community Facilities Districts and Public Financing Legal Services Adopt a resolution approving a legal services agreement with Best, Best & Krieger LLP for community facilities districts and public financing legal services. Item 5.4 heading: RESOLUTION NO. 2026-049 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A LEGAL SERVICES AGREEMENT WITH BEST, BEST & KRIEGER LLP FOR COMMUNITY FACILITIES DISTRICTS AND PUBLIC FINANCING LEGAL SERVICES Page 25 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2026-04-14 Regular City Council Meeting Minutes Page 3 5.5 Joint Powers Agreement: Approve a Joint Powers Agreement Between the City of Chula Vista and the County of San Diego for the Planning, Operations, and Maintenance of the Otay Ranch Open Space Preserve Adopt a resolution approving a renewed and revised 30-year Joint Powers Agreement between the City of Chula Vista and the County of San Diego for the Planning, Operations, and Maintenance of the Otay Ranch Open Space Preserve and authorizing the City Manager to execute the renewed and revised 30-year Joint Powers Agreement. Item 5.5 heading: RESOLUTION NO. 2026-050 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A 30-YEAR JOINT POWERS AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE COUNTY OF SAN DIEGO FOR THE PLANNING, OPERATIONS, AND MAINTENANCE OF THE OTAY RANCH OPEN SPACE PRESERVE AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE 30-YEAR JOINT POWERS AGREEMENT 5.6 Agreements: Landscape Maintenance Agreements with HomeFed Village 8E, LLC and California Department of Transportation Related to Maintenance of Caltrans Right-of-Way in Otay Ranch Village 8 East Adopt a resolution A) approving the Landscape Maintenance Agreement between the City of Chula Vista and HomeFed Village 8E, LLC for the maintenance of a specified area within the Caltrans right-of-way associated with the Otay Ranch Village 8 East project; and B) authorizing the City Manager to execute a Landscape Maintenance Agreement with the California Department of Transportation for the same right-of-way area. Item 5.6 heading: RESOLUTION NO. 2026-051 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A LANDSCAPE MAINTENANCE AGREEMENT WITH HOMEFED VILLAGE 8E, LLC, AND AUTHORIZING THE CITY MANAGER TO EXECUTE A LANDSCAPE MAINTENANCE AGREEMENT WITH THE CALIFORNIA DEPARTMENT OF TRANSPORTATION FOR RIGHT-OF-WAY MAINTENANCE WITHIN OTAY RANCH VILLAGE 8 EAST 5.8 Grant Award and Appropriation: Accept and Appropriate Grant Funds from Kaiser Foundation Hospitals for Operation Splash Community Swim Program Adopt a resolution 1) accepting $93,500 in grant funds from Kaiser Foundation Hospitals for the Operation Splash Community Swim Program, 2) authorizing City Manager to execute grant documents, and 3) amending the fiscal year 2025-26 budget by appropriating funds to the Parks and Recreation Section of the Other Grants Fund. (4/5 Vote Required) Item 5.8 heading: RESOLUTION NO. 2026-052 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING FUNDS FROM KAISER FOUNDATION HOSPITALS FOR THE OPERATION SPLASH COMMUNITY SWIM PROGRAM, AMENDING THE FISCAL YEAR 2025-26 BUDGET AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) Page 26 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2026-04-14 Regular City Council Meeting Minutes Page 4 ITEMS REMOVED FROM THE CONSENT CALENDAR 5.7 City Boards and Commissions: Place an Ordinance on First Reading Amending the Municipal Code to Implement District-Based Nominations for Certain Boards and Commissions City Clerk Bigelow gave a presentation on the item. John Acosta, Chula Vista resident spoke in opposition to the item. Rita Byers submitted written comments in opposition to the item. At the request of Councilmember Preciado, there was a consensus of a majority of the City Council to direct staff to return at a future meeting with a revised draft ordinance to require district residency for the Traffic Safety Commission. 6. PUBLIC COMMENTS John Acosta, Chula Vista resident, spoke regarding various topics. The following members of the public spoke regarding environmental issues:  Purita Javier  Cesar Javier The following members of the public spoke in support of Police Chief Kennedy:  Bob Sutherland  Dr. Chanda Simmons  Janet Lambert  Angelique Williams  Brandon Claypool Deborah Schlemmer spoke in support of installing a memorial in Valle Lindo Park. Angelica Martinez spoke regarding concerns related to district representation and community matters. Ben Delgado, representing Chula Vista Futbol Club, spoke regarding the soccer community. 7. PUBLIC HEARINGS 7.1 Housing Grant Funding: Receive Recommendations for the Fiscal Year 2026- 2027 U.S. Department of Housing and Urban Development Annual Action Plan Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and no earlier than the time specified in the notice. Mayor McCann stated that he would abstain from discussion of the item due to a potential property-related conflict of interest and left the dais during discussion of the item. Principal Management Analyst Gonzalez gave a presentation on the item. Deputy Mayor Fernandez opened the public hearing. Page 27 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2026-04-14 Regular City Council Meeting Minutes Page 5 John Acosta, Chula Vista resident, spoke in opposition to the item. The following members of the public spoke regarding the item:  Cesar Javier  Rebecca Rader, representing Voices for Children  Adam Reed, representing Mama's Kitchen The following members of the public submitted written comments in support of the item:  Elsa Hernandez, representing Harborside Elementary  Mauricio Medina, representing the San Diego Food Bank  Laura Franco, representing There being no further members of the public who wished to speak, Deputy Mayor Fernandez closed the public hearing. The meeting was recessed at 6:55 p.m. and reconvened at 7:01 p.m. 7.2 Comprehensive Code Update: Consideration of Amendments to the Chula Vista Municipal Code Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and no earlier than the time specified in the notice. Mayor McCann announced that the item would be continued to the May 5, 2026, City Council meeting. Mayor McCann opened the public hearing. The following members of the public spoke regarding the item:  John Acosta, Chula Vista resident  Cesar Javier There being no further members of the public who wished to speak, Mayor McCann closed the public hearing. 8. ACTION ITEMS 8.1 Consider Items Removed From the Consent Calendar, if Any For action on this item, refer to the section Items Removed from the Consent Calendar, above. 8.2 Lease Agreement: Approve a Lease Agreement with the Board of Trustees of the California State University Acting on Behalf of San Diego State University for a portion of the City-Owned Building Located at 1775 Millenia Avenue Real Property Manager Dickson and Special Projects Manager Relph gave a presentation on the item. Ian Gibson, representing San Diego State University, School of Nursing, spoke regarding the item. John Acosta, Chula Vista resident, spoke in opposition to the item. Page 28 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2026-04-14 Regular City Council Meeting Minutes Page 6 The following members of the public spoke in support of the item:  Lisa Schmidt, representing Assemblymember David Alvarez's office  Victoria Barba, representing Sharp Healthcare Councilmember Preciado stated that he was employed by San Diego State University, that the disclosure was made at the direction of the Fair Political Practices Commission (FPPC), and that the FPPC advised that he did not have a disqualifying conflict and could participate in and vote on the item. Moved by Mayor McCann Seconded by Councilmember Inzunza To adopt Resolution No.2026-053, the heading was read, text waived. The motion was carried by the following vote: Result, Carried (5 to 0) Item 8.2 heading: RESOLUTION NO. 2026-053 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A LEASE AGREEMENT BETWEEN THE CITY AND THE BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY ON BEHALF OF SAN DIEGO STATE UNIVERSITY FOR A PORTION OF THE CITY-OWNED BUILDING LOCATED AT 1775 MILLENIA AVENUE The meeting was recessed at 7:58 p.m. and reconvened at 8:04 p.m. 8.3 Contract Amendment: Approve an Amendment to the Consultant Services Agreement with Dudek to Provide Civil Engineering Services and Planning Services and Appropriate Funds for that Purpose Deputy City Managers Chase and Schoen gave a presentation on the item. Moved by Mayor McCann Seconded by Deputy Mayor Fernandez To adopt Resolution No. 2026-054, the heading was read, text waived. The motion was carried by the following vote: Result, Carried (5 to 0) Item 8.3 heading: RESOLUTION NO. 2026-054 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) APPROVING A FIRST AMENDMENT TO THE CONSULTANT SERVICES AGREEMENT BETWEEN THE CITY AND DUDEK TO PROVIDE CIVIL ENGINEERING AND PLANNING SERVICES, INCREASING THE NOT-TO- EXCEED AMOUNT WITH OPTIONS TO EXTEND THE TERM, AND (2) AMENDING THE FISCAL YEAR 2025-26 BUDGET AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) Page 29 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2026-04-14 Regular City Council Meeting Minutes Page 7 8.4 Employee Compensation and Positions: Approve Amended Classification and Compensation Plan, Authorized Position Counts, Revised Compensation Schedule; Budget Amendments; and Updated Conflict of Interest Code Human Resources Director Tomlinson announced that approval of the item would affect executive compensation. John Acosta, Chula Vista resident, spoke in opposition to the item. Moved by Councilmember Preciado Seconded by Mayor McCann To adopt Resolution Nos. 2026-055 through 2026-058, the headings were read, text waived. The motion was carried by the following vote: Result, Carried (5 to 0) Item 8.4 headings: A) RESOLUTION NO. 2026-055 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE CLASSIFICATION PLAN, COMPENSATION SCHEDULE AND AUTHORIZED POSITION COUNT IN VARIOUS DEPARTMENTS B) RESOLUTION NO. 2026-056 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE REVISED FISCAL YEAR 2025-26 COMPENSATION SCHEDULE EFFECTIVE APRIL 17, 2026, AS REQUIRED BY CALIFORNIA CODE OF REGULATIONS, TITLE 2, SECTION 570.5 C) RESOLUTION NO. 2026-057 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING VARIOUS AMENDMENTS TO THE FISCAL YEAR 2025- 26 BUDGET AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) D) RESOLUTION NO. 2026-058 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MODIFYING THE APPENDIX TO THE LOCAL CONFLICT OF INTEREST CODE TO AMEND THE LIST OF DESIGNATED FILERS AND ASSOCIATED DISCLOSURE CATEGORIES, AND DESIGNATING THE FILERS AS LOCAL AGENCY OFFICIALS THAT MUST COMPLETE STATE-MANDATED ETHICS AND FISCAL AND FINANCIAL TRAINING 8.5 Citywide Holiday Renaming: Adopt Amendments to the Memoranda of Understanding with Collective Bargaining Groups and Introduce an Ordinance Renaming Cesar Chavez Day to Farmworkers Day Human Resources Director Tomlinson gave a presentation on the item. Cesar Javier spoke in opposition to the item. Moved by Councilmember Preciado Seconded by Councilmember Chavez To adopt Resolution No. 2026-059 and place the ordinance on first reading, the headings were read, text waived. The motion carried by the following vote: Page 30 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2026-04-14 Regular City Council Meeting Minutes Page 8 Yes (5): Councilmember Chavez, Deputy Mayor Fernandez, Councilmember Inzunza, Councilmember Preciado, and Mayor McCann Result, Carried (5 to 0) Item 8.5 headings: A) RESOLUTION NO. 2026-059 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AMENDMENTS TO MEMORANDA OF UNDERSTANDING REGARDING HOLIDAYS FOR THE FOLLOWING BARGAINING UNITS: ASSOCIATION OF CHULA VISTA EMPLOYEES; CHULA VISTA MID MANAGERS/ PROFESSIONAL ASSOCIATION, SEIU LOCAL 221; NON-SAFETY LOCAL 2180, INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS; LOCAL 2180, INTERNATIONAL ASSOCIATION OF FIRE FIREFIGHTERS; CHULA VISTA POLICE OFFICER’S ASSOCIATION; AND THE WESTERN COUNCIL OF ENGINEERS B) ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE SECTION 10.08.110 RELATING TO THE DEFINITION OF HOLIDAYS FOR PARKING METERS AND ZONES AND SECTION 12.50.050 RELATING TO THE TIMES WHEN SIGNS CAN BE TEMPORARILY PLACED IN DESIGNATED PORTIONS OF THE PUBLIC RIGHTS-OF-WAY (FIRST READING) 8.6 Brown Act Updates (SB 707): Hear a Presentation, Adopt Technology Disruption and Outreach Policies, and Consider Direction to Staff City Clerk Bigelow gave a presentation on the item. Moved by Councilmember Inzunza Seconded by Councilmember Chavez To adopt Resolution Nos. 2026-060 through 2026-062,the headings were read, text waived. The motion was carried by the following vote: Result, Carried (5 to 0) Item 8.6 headings: A) RESOLUTION NO. 2026-060 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A NEW CITY COUNCIL POLICY ADDRESSING A DISRUPTION OF TELEPHONIC OR INTERNET SERVICE DURING CITY COUNCIL MEETINGS B) RESOLUTION NO. 2026-061 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DETERMINING REASONABLE EFFORTS TO ENCOURAGE PUBLIC PARTICIPATION IN CITY COUNCIL MEETINGS PURSUANT TO GOVERNMENT CODE § 54953.4 C) RESOLUTION NO. 2026-062 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA RESCINDING CITY COUNCIL POLICY 104-02, “REMOTE COUNCIL MEETING PARTICIPATION BY COUNCILMEMBERS” Page 31 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2026-04-14 Regular City Council Meeting Minutes Page 9 8.7 Strategic Plan: Presentation and Discussion of the City's Draft 2026–2031 Strategic Plan Kymberly Garrett, consultant, gave a presentation on the item. At the request of Deputy Mayor Fernandez, there was a consensus of the City Council to return the item for discussion at a future City Council workshop. 9. PUBLIC COMMENTS (CONTINUED) There were none. 10. CITY MANAGER’S REPORTS There were none. 11. MAYOR’S REPORTS Mayor McCann reported on attendance at recent events and made community announcements. 12. COUNCILMEMBERS’ REPORTS City Councilmembers reported on attendance at recent events and made community announcements. At the request of Councilmember Preciado, there was a consensus of a majority of the City Council to refer the following matters to staff for further guidance: (1) City logo use; and (2) Councilmember events and meetings held in the community, including allowable budget, staff, and equipment that may be used. At the request of Deputy Mayor Fernandez, there was a consensus of the City Council to make a referral to staff to return with: 1) an evaluation of the naming of the new park at 4th Avenue and Oxford Street, including consideration of naming the park in honor of Roy Franzen Jr.; and 2) recommendations regarding possible revisions to the Asset Naming Policy. 13. CITY CLERK'S REPORTS There were none. 14. CITY ATTORNEY'S REPORTS City Attorney Verdugo expressed appreciation to City Clerk Bigelow for her work on the Brown Act update item and acknowledged International Be Kind to Lawyers Day. 15. CLOSED SESSION Pursuant to Resolution No. 13706 and City Council Policy No. 346-03, the City Attorney maintains official minutes and records of action taken during closed session. City Attorney Verdugo announced that the City Council would convene in closed session to discuss the items listed below. The meeting was recessed at 9:42 p.m. and reconvened in closed session at 9:45 with all members present. Page 32 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2026-04-14 Regular City Council Meeting Minutes Page 10 15.1 Conference with Legal Counsel Regarding Existing Litigation Pursuant to Government Code Section 54956.9(d)(1) A) Name of case: Maria Enriquez, et al. v. City of Chula Vista, et al., Southern District of California, Case No. '25CV3832 BTM DEB Action: No reportable action B) Name of case: In Re: National Prescription Opiate Litigation, Case No. 1:17- md-02804-DAP, pending in the U.S. District Court for the Northern District of Ohio. (Remnant Defendants settlements: Associated Pharmacies, Inc., American Associated Pharmacies, J.M. Smith Co., Louisiana Wholesale Drug Co., Inc., Morris and Dickson, North Carolina Wholesale Drug Co., Inc., and UNFI/SuperValu) Action: No reportable action 16. ADJOURNMENT The meeting was adjourned at 9:59 p.m. Minutes prepared by: Tyshar Turner, Deputy Director, City Clerk Services _________________________ Kerry K. Bigelow, MMC, City Clerk Page 33 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda v . 0 0 3 P a g e | 1 April 21, 2026 ITEM TITLE Citywide Holiday Renaming: Adopt an Ordinance Amending the Municipal Code Replacing Cesar Chavez Day with Farmworkers Day Location: No specific geographic location Department: Human Resources & City Manager G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended Action Adopt an ordinance amending Chapter 10.08 (Definitions for Vehicles and Traffic) and Chapter 12.50 (Temporary Placement of Signs in Designated Portions of the Public Right-of-Way) of the Chula Vista Municipal Code to replace Cesar Chavez Day with Farmworkers Day. (Second Reading and Adoption) Summary This ordinance was placed on first reading on April 14, 2026. The original staff report can be accessed at the following link: https://pub-chulavista.escribemeetings.com/filestream.ashx?DocumentId=59949 Please note, the original staff report may include information beyond the scope of the ordinance proposed for adoption with this action. For questions, please contact the staff indicated in the original staff report or cityclerk@chulavistaca.gov. Page 34 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda SECOND READING AND ADOPTION C:\Program Files\eSCRIBE\TEMP\114183027\114183027,,,Ordinance - Amending Titles 10 and 12 to Rename Holidays.docx ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE SECTION 10.08.110 RELATING TO THE DEFINITION OF HOLIDAYS FOR PARKING METERS AND ZONES AND SECTION 12.50.050 RELATING TO THE TIMES WHEN SIGNS CAN BE TEMPORARILY PLACED IN DESIGNATED PORTIONS OF THE PUBLIC RIGHTS-OF-WAY WHEREAS, Title 10 (Vehicles and Traffic) of the Chula Vista Municipal Code is a compilation of the rules and regulations governing and controlling the movement of motor vehicles and traffic in Chula Vista; and WHEREAS, Section 10.08.110 of the Chula Vista Municipal Code defines “Holidays” for purposes of Chapter 10; and WHEREAS, Title 12 (Streets and Sidewalks) of the Chula Vista Municipal Code governs the use of public rights-of-way, including regulations for temporary signage; and WHEREAS, Section 12.50.050 of the Chula Vista Municipal Code defines time (including holidays), place, and manner restrictions for the temporary replacement of signs in designated portions of the public rights-of-way; and WHEREAS, the City Council wishes to amend Section 10.08.110 and Section 12.50.050 to rename March 31st, known as “Cesar Chavez Day” to “Farmworkers Day.” NOW, THEREFORE the City Council of the City of Chula Vista does ordain as follows: Section I. Revision of Holidays. The Chula Vista Municipal Code is hereby amended as follows: 10.08.110 Holidays “Holidays,” within the meaning of this chapter, are: A. January 1st, known as New Year’s Day. B. The third Monday in January, known as Dr. Martin Luther King, Jr. Day. C. February 12th, known as Lincoln’s birthday. D. The third Monday in February, known as Washington’s birthday. E. March 31st, known as Cesar Chavez DayFarmworkers Day. F. The last Monday in May, known as Memorial Day. Page 35 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Ordinance Page 2 G. June 19th, known as Juneteenth. H. July 4th, known as Independence Day. I. The first Monday in September, known as Labor Day. J. September 9th, known as Admission Day. K. November 11th, known as Veterans Day. L. The fourth Thursday in November, known as Thanksgiving Day. M. The fourth Friday in November, the day after Thanksgiving Day. N. December 25th, known as Christmas Day. When any of the holidays listed in this section fall on Saturday, the preceding Friday shall be deemed to be a holiday in lieu of the day observed, and when any of the holidays listed in this section fall on Sunday, the following Monday shall be deemed to be a holiday in lieu of the day observed. (Ord. 3544 § 3, 2023; Ord. 3346 § 1, 2015; Ord. 2670, 1996; Ord. 2638 § 1, 1995; Ord. 1663 § 1, 1976; Ord. 973 § 1, 1966; prior code § 19.1.3(J)). 12.50.050 Time, place and manner restrictions. Except for signs allowed under Section VIII of City Council Policy 465-02, all portable signs are subject to the following conditions: A. Size. The total face area of each sign shall not exceed 24 inches by 24 inches in size. Doubled-faced signs are considered a single sign and only require one permit with a permit sticker placed on each side of the sign. B. Height and Width. The vertical distance measured from ground level to the highest point of such sign or supporting device and the width of the supporting device may not exceed three feet. C. Type. Signs shall be portable, self-supporting, and of sufficient weight that the sign remains upright and in the same position for the entire time the sign is in the public right- of-way. No portion of the sign or supporting device shall be placed or driven into the ground. Signs and supporting devices shall be maintained in good condition at all times and shall be constructed out of quality weather-resistant materials normally used in professional signage. No cardboard or paper signs are allowed. D. Attachments. Signs and supporting devices may not contain brochure boxes, tear-off flyers/coupons, or any similar type of attachment. No balloons, flags, pennants, or similar devices may be attached to a sign or supporting device. Page 36 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Ordinance Page 3 E. Identification. Signs must contain, in legible font, on an area no less than two inches by three and one-half inches (business card size) the name, mailing address, and contact phone number of the individual responsible for the sign. F. Permit Sticker. Each sign placed in the public right-of-way must have a valid permit sticker affixed to both sides of each sign whether or not it is a double-faced sign. G. Time. Signs shall only be displayed from Saturday at 6:00 a.m. through Sunday at 6:00 p.m. and on the listed City-observed holidays from 6:00 a.m. through 6:00 p.m. 1. January 1st (New Year’s Day). 2. The third Monday in January (Martin Luther King, Jr. Day). 3. March 31st (Cesar Chavez DayFarmworkers Day). 4. The last Monday in May (Memorial Day). 5. July 4th (Independence Day). 6. The first Monday in September (Labor Day). 7. The second Monday in November (Veterans’ Day). 8. The third Thursday of November (Thanksgiving Day). 9. The day after Thanksgiving Day. 10. December 25th (Christmas Day). H. Location. No sign shall be placed, displayed, used or maintained: 1. On any sidewalk, walking path, bike lane, street, roadway area, traffic circle, roundabout, or center median or island area. 2. On public rights-of-way adjacent to streets undergoing active construction, repair, or maintenance, including landscape installation. 3. In such a manner as to obstruct the view of any official public sign. 4. On any right-of-way if the location obstructs the safe and convenient use by the public of any street, sidewalk, or curbside parkway area. 5. Within five feet of the beginning of the curb return of any intersections, whether the intersections have marked or unmarked crosswalks. 6. Within five feet of a fire hydrant, private or public driveway, traffic signal, traffic sign, USPS mail receptacle, community mailbox, public trash receptacle, designated bus stop/bench, or any other bench on the sidewalk. Page 37 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Ordinance Page 4 7. On any traffic control signs or devices, street light, utility, or communications standards or poles and any of their supporting structures or equipment. 8. In any manner that causes a visual obstruction to traffic that may create a hazard to traffic and/or pedestrians. 9. In any manner that injures, damages and/or destroys any plantings or vegetation within the right-of-way. 10. Within 18 inches from the face of curb. 11. On any public right-of-way adjacent to streets during special events. 12. In any City park. 13. Within any vision clearance area as defined in CVMC 12.12.130. (Ord. 3082 § 1, 2007). Section II. Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Section III. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section IV. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section V. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Page 38 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Ordinance Page 5 Presented by Approved as to form by Courtney Chase Marco A. Verdugo Deputy City Manager City Attorney Page 39 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda v . 0 0 5 P a g e | 1 April 21, 2026 ITEM TITLE Housing Authority Policy: Updates to the Chula Vista Housing Authority Multifamily Mortgage Revenue Bond Policies to Comply with the California Debt Limit Allocation Committee Report Number: 26-0094 Location: No specific geographic location Department: Housing and Homeless Services G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (CEQA) Guidelines. Therefore, pursuant to CEQA Guidelines Section 15060(c)(3) no environmental review is required. Recommended Action Adopt a resolution of the Chula Vista Housing Authority to approve updates to the Chula Vista Housing Authority Multifamily Mortgage Revenue Bond Policies and authorize the Director to make additional minor clerical or administrative changes as needed. SUMMARY The Chula Vista Housing Authority (the “Housing Authority”) is authorized to act as the issuer of tax-exempt bonds for affordable housing developments, awarded through the California Debt Limit Allocation Committee (“CDLAC”). CDLAC requires that issuers maintain a set of Multifamily Mortgage Revenue Bond Policies (the “Bond Policies”) establishing the process and requirements for issuance. The Housing Authority last revised its Bond Policies in 2024. CDLAC provided some minor recommendations for further amendments to the Housing Authority’s Bond Policies. This action would formally recommend adoption of CDLAC’s proposed changes, and authorize the City Manager, as Director of the Housing Authority (“Director”), to make additional minor or clerical changes without returning to City Council. ENVIRONMENTAL REVIEW The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a “Project” as defined under Section 15378 of the Page 40 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 2 CEQA Guidelines because it will not result in a physical change in the environment. Therefore , pursuant to Section 15060(c)(3) of the CEQA Guidelines, the activity is not subject to CEQA. BOARD/COMMISSION/COMMITTEE RECOMMENDATION On March 25, 2026, the Housing and Homeless Advisory Committee voted 3-0 to recommend the item for adoption by the Housing Authority. DISCUSSION Tax-exempt multifamily housing revenue bonds, also known as private activity bonds, are a common method of financing affordable housing developments. Bonds are awarded by CDLAC through a statewide competitive process. They are nearly always paired with another financing source, low-income housing tax credits, awarded by CDLAC’s sister agency, the California Tax Credit Allocation Committee (CTCAC). The bonds are attractive to investors because their interest income is exempt from state and federal taxes. The federal government sets a “bond cap” limiting the amount of bonds that can be issued annually within each state. To control the bond capacity, CDLAC determines which projects are to receive an allocation of bonds and then transfers the authority for that amount to the bond issuer. The Housing Authority essentially acts as a pass-through entity, and neither it nor the City of Chula Vista bears any financial risk or obligation in the event of a default. (Its role is sometimes referred to as a “conduit issuer” for this reason.) The bonds are paid off through rental revenue from the completed projects. Bonds may be issued either by the Housing Authority or by other qualified entities such as the California Housing Finance Agency (“CalHFA”), the California Municipal Finance Authority (“CMFA”), or other joint powers authorities. In 2024, the Housing Authority updated its Bond Policies via Housing Authority Resolution No. 2024-004 adopted on May 21, 2024, to make itself the primary issuer for all projects in Chula Vista, except where an exception is warranted due to special circumstances. The Housing Authority submitted its adopted Bond Policies to CDLAC, the agency who provided several minor recommended revisions. The proposed changes include the following:  Clarifying the deadlines for fee payments.  In the event of a rehabilitation/resyndication of an older property, affirming that CDLAC’s approval is required for any new regulatory agreements that replace older documents.  Confirming that CDLAC must be formally notified in the event of a default and m ust approve of any transfers of ownership. To streamline future minor updates to the Bond Policies, the resolution will also authorize the Director to make additional minor or clerical changes without returning to the Housing Authority for further action. A redlined version of the Bond Policies is included as Attachment 1 showing these proposed updates. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the Chula Vista Housing Authority commissioners do not create Page 41 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 3 a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware and has not been informed by any Chula Vista Housing Authority commissioner of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT Adoption of this policy update will have no fiscal impact in the current fiscal year. The proposed policy updates are minor and pertain to administrative procedures. ONGOING FISCAL IMPACT Adoption of this policy update will have no ongoing fiscal impact. The proposed policy updates are minor and pertain to administrative procedures. ATTACHMENTS 1. Proposed Redlines to the Chula Vista Housing Authority Multifamily Mortgage Revenue Bond Policies Staff Contact: Brian Warwick, Housing Manager Stacey Kurz, Director of Housing and Homeless Services Page 42 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority Multifamily Mortgage Revenue Bond Policies Adopted by HA Resolution 2018-01 Revised 04-30-2018 and 05/21/2024 The City of Chula Vista expands the supply of affordable housing by issuing multifamily mortgage revenue bonds through the Chula Vista Housing Authority (“Housing Authority”), as allocated by the California Debt Limit Allocation Committee (“CDLAC”). Since 1993, the Housing Authority has issued mortgage revenue bonds to private developers to finance low- and moderate-income housing for families. Pursuant to CDLAC Regulation 5031(c), as an Issuer of bonds, the Housing Authority must have written policies setting forth its bond issuance procedures and post-issuance compliance procedures in conformance with the governing laws and regulations. 276 FOURTH AVENUE • CHULA VISTA • CA • 91910 • (619) 691-5047 • affhousing@chulavistaca.gov www.chulavistaca.gov/housing Page 43 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Summary  1 Chula Vista Housing Authority Multifamily Mortgage Revenue Bond Policies Summary Federal, state, and local legislation authorizes issuance of mortgage revenue bonds (“Bonds”) by local governments to finance the development, acquisition, construction and rehabilitation of multifamily housing rental projects (a “Project” or “Projects”) by a private property owner/developer, also known as the “Project Sponsor”. The interest on the Bonds is exempt from federal and state taxation. As a result, Bonds provide below market financing for qualified multifamily rental projects located in the City of Chula Vista (the "City”). This program (“Bond Program”) is administered by the Housing Authority and uses tax-exempt mortgage revenue bonds (“Bonds”) issued by the Housing Authority. There is no direct liability of the City or the Housing Authority in connection with the issuance or repayment of the Bonds. There is no pledge of the City’s or Housing Authority’s faith, credit, or taxing power and the Bonds do not constitute general obligations of the City or Housing Authority because the security for repayment of the bonds is limited to Project revenue and other sources specified in the documentation for the financing of the Project. Project loans are, in most cases, structured as a real estate loan, with the obligation to repay the bonds secured by a first deed of trust on the Bond-financed property. The program is self-supporting with the owner responsible for the payment of all costs of issuance and other costs and repayment of the obligations. • • • Our mission is to build strong families and to strengthen the social and physical fabric of the Chula Vista community by creating and sustaining decent, safe and affordable living environments to foster stability in the home and the neighborhood and empowering our diverse residents as change agents for their quality of life. Page 44 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Summary  2 The goals of the Bond financing program include: ❑ Preserving and increasing availability of quality affordable rental housing; ❑ Encouraging economic integration within residential neighborhoods; and ❑ Maintaining and enhancing a quality living environment for residents of affordable housing communities and the surrounding properties. All Projects requesting mortgage revenue Bond issuance are subject to the requirements in these guidelines. The Housing Authority reserves the right to make exceptions, at its sole discretion when deemed necessary. The Housing Authority guidelines and policies are subject to change. Page 45 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Issuer  3 Issuer The Chula Vista Housing Authority (the “Housing Authority”) shall be the issuer of all Bonds financing Projects within the City, except as provided below. Bonds for Projects are intended to be non-recourse conduit financing in which the Housing Authority or the City will not be responsible for the repayment of debt. Outside Issuers Project Sponsors considering the use of any Bond issuers other than the Housing Authority (“Outside Issuers”) should contact Housing Authority staff and obtain advance written approval prior to proceeding. The required Housing Authority public hearing for approval of Bonds by Outside Issuers will be held only if the Project Sponsor can demonstrate that an Outside Issuer is required to ensure project viability, such as when a financing proposal is part of a pooled issuance involving projects located in multiple jurisdictions and such pooled issuance results in significantly lower project costs. Any approvals by the Housing Authority on behalf of an Outside Issuer will include a provision that the owner, operator, or manager of the proposed project will not change without the prior written approval of the Housing Authority. It shall be the Housing Authority’s policy to require such Outside Issuers to assume full responsibility for issuance and on-going compliance of the Bond issue with applicable state and federal laws. Page 46 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Public Benefit  4 Public Benefit Each Project to be financed must demonstrate tangible public benefits to the community in which it resides before the Housing Authority is willing to act as an issuer for tax-exempt multifamily mortgage revenue Bonds. These benefits must conform to all federal and state requirements for tax-exempt multifamily mortgage revenue Bonds. Affordability for Rental Projects To ensure a public benefit, Project Sponsors must set aside a minimum number of units in each project for lower income households. These units must be rented to households at or below 50% or 60% of Area Median Income (“AMI”). For the purposes of this Bond Program, Area Median Income or AMI shall have the same meaning as “area median gross income” as defined under 26 U.S. Code Section 142(d); the income limits for each percentage of AMI shall be consistent with the Multifamily Tax Subsidy Project (“MTSP”) income limits published annually by the United States Department of Housing and Urban Development (“HUD”). The restricted units must proportionately reflect the mix of all units in the project, be distributed throughout the project, and have the same floor area, amenities, and access to project facilities as market-rate units. Eligible Projects must meet the following minimum set-aside requirements: Federal ❑ Twenty percent (20%) of units shall be rented to households earning at or below fifty percent (50%) of AMI.. OR ❑ Forty percent (40%) of units shall be rented to households at or below sixty percent (60%) of AMI. State ❑ A minimum of ten percent (10%) of the units shall be rented to households earning at or below 50% of AMI. Rents for these units shall be set according to the Rent Restrictions section below. Project owners must certify their tenants’ eligibility annually or as otherwise required by the Housing Authority in the applicable Regulatory Agreement. If a tenant is no longer eligible, the next available unit (if federal tax credits apply to the project, in the building in which the unit was located) must be rented to a new eligible tenant and the current tenant’s rent can be raised to a market level. A unit occupied only by students may not count towards the set-aside requirement. Page 47 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Public Benefit  5 Rent Restrictions For purposes of the Bond Program, the maximum rent calculations for those units required to meet the minimum set-aside required and the adopted CDLAC Resolution shall be consistent with the methodology and rent restrictions set forth annually by the California Tax Credit Allocation Committee (“CTCAC”). Maximum rents are further reduced by a utility allowance for tenant-paid utilities in the amounts determined by the Housing Authority. In the event tax-exempt bond projects are subject to another regulatory agreement from a public agency, the more restrictive rents shall apply. If a set-aside unit is occupied by a household receiving a tenant- based rental subsidy such as a Section 8 Housing Choice Voucher, the gross rent may exceed the applicable unit restrictions as long as the household is receiving at least one dollar ($1) in federal subsidy. Term of Rental and Affordability Restrictions The Project must remain as rental housing and continuously meet the affordability requirements for the longest of (a) the Qualified Project Period (as defined in Internal Revenue Code of 1986), (b) such period as may be required by CDLAC (typically, 55-years from the date of the original issuance), (c) as long as the Bonds remain outstanding, or (d) such period as may be required, in the opinion of the City’s or Housing Authority’s Bond Counsel, to meet federal or state law. The City and/or Housing Authority reserve the right to impose additional affordability restrictions if the City or Housing Authority determines it is necessary to be competitive in the state allocation process or in compliance with applicable State laws. The affordability covenant remains in effect for not less than the agreed upon term, which may continue beyond the Qualified Project Period. It is intended that the affordability term will remain in effect beyond the retirement of the Bonds and expiration of any loan agreements. Projects that are financed with Low-Income Housing Tax Credits or any other public funds will be required to meet the requirements of TCAC or the more restrictive requirements of the applicable financing sources. A Bond Regulatory Agreement (“Regulatory Agreement”), consistent with the requirements of Section 5220 of the CDLAC regulations, containing the rental and affordability restrictions and all other commitments outlined in the CDLAC resolution and its Exhibits, to be incorporated and made an attachment of the Regulatory Agreement, will be recorded against the property and must be complied Page 48 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Public Benefit  6 with by subsequent owners, as the Regulatory Agreement is a covenant that runs with the land. The Regulatory Agreement will be terminated upon expiration of restrictions or in the event of casualty loss or foreclosure, and the subsequent retirement of Bonds as a result of foreclosure. Project Sponsors must regularly verify compliance with the affordability terms outlined within the applicable Regulatory Agreement(s). The Housing Authority reserves the right to impose additional reporting requirements to ensure ongoing compliance. State law requires advance notice and other requirements upon the termination of the affordability requirements. Some requirements also place restrictions on the sale of previously affordable housing projects. In addition, at the conclusion of the required affordability period, the rent of those “in -place” tenants will continue to be governed by the applicable affordability restriction, so long as those tenants continue to live in the development. Page 49 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Priority Projects  7 Page 50 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Loan Terms & Conditions  8 Loan Terms & Conditions The terms and conditions of mortgage revenue bond loans shall be in accordance with CDLAC and TCAC requirements and the requirements of the lending institution specific to the Project. The following represents general terms. Maximum/Minimum Loan Amount The bond issuance and related loan amounts for individual projects are based upon project costs, interest rates, revenues available to pay debt service and the appraised value of the Project being financed. The Housing Authority may consider multiple properties as part of a single bond financing on a case by case basis. Interest Rate The effective Mortgage Rate is the aggregate of the applicable bond rate and the add-on fees charged under the program, such as lender, trustee, issuer’s fee, etc. The bond rate, for fixed rate bonds, is determined at the time of a bond sale and the resulting mortgage is typically below conventional mortgage rates. Loan Term The Project loans generally reflect a 30-year amortization schedule, although the bond maturity may be shorter. Affordability Term The affordability term is the lesser of 55 years or the longest affordability period of other financing sources, and is enforced through a recorded regulatory agreement. Page 51 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Application Requirements  9 Application Requirements The Housing Authority requires each Project Sponsor complete a Housing Authority application. Applications must be submitted for all Projects seeking Bond financing where the Housing Authority will act as issuer or where the Housing Authority will sponsor or hold a TEFRA hearing. This includes all new money issuances requiring an allocation of bond authority from the California Debt Limit Allocation Committee (CDLAC), new 501(c)(3) issues, and refunding of existing bond issues. Applications must be submitted at least 90 days before the relevant CDLAC application deadline to allow enough time for Housing Authority review and approval. Applications that do not need CDLAC approval must be submitted at least 90 days before the desired Bond closing date. Any information provided in the application must be considered public information by State law. ❑ Chula Vista Affordable Housing Application ❑ Relocation Plan, if applicable – As required by CDLAC regulations (Section 5211 “Tenant Relocation”) if low-income tenants will receive a rent increase exceeding five percent (5%) of their current rent, then a relocation plan is required to address economic displacement. The relocation plan should be consistent with the Uniform Relocation Assistance and Real Property Acquisition Policy Act (42 U.S.C. 61). Project Sponsor Qualifications, Experience and Performance Project Sponsors, or its general partners, including administrative and managing general partners, or a principal in each, are required to have previous experience in the development and ownership of multifamily rental affordable housing projects. Housing Authority staff will review and approve the qualifications of the Project Sponsor and all partners in the ownership entity. As part of the Affordable Housing Application, Project Sponsors are required to submit: ❑ Proposed or executed organizational documents of the Project Sponsor and ownership entity, including a detailed description of the role of each, if separate entities, throughout the regulatory period of the Project; and ❑ Evidence of successfully participating in at least two projects over ten units in size and subject to a recorded regulatory agreement for at least three years prior to the application. The Housing Authority may require evidence projects have maintained positive operating cash flows and that all required reserves have been funded throughout the ownership period. Project Sponsors who are unable to meet qualifications and experience requirements will be required to partner with an entity that does have the necessary experience. Page 52 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Application Requirements  10 The Housing Authority will NOT consider an application from a Project Sponsor if the following conditions exist: ❑ Failure to use an allocation from CDLAC; ❑ Out of compliance with or in default of the terms of any other City/Housing Authority financings or loans. Bonds & Tax Credits Due to Internal Revenue Service (IRS) limitations applicable to the fees charged by issues of tax-exempt bonds where the bond purchaser and the tax credit investor are the same or related entities, the Housing Authority will not issue bonds for Projects where the tax credit investor is all the same or a related entity to the bond purchaser. Exceptions may be granted on a case-by-case basis, at the discretion of the Housing Authority. Page 53 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • The Process  11 The Process Application Applications must be submitted for all Projects seeking Bond financing where the Housing Authority will act as issuer or where the Housing Authority will sponsor or hold a TEFRA Hearing. Housing staff will review the application for feasibility. The Housing Authority reserves the right to require an independent study of any proposed Project, with all associated costs to be borne by the Project Sponsor. Determination of Readiness In its review of the submitted application, Housing staff shall determine if the project is in a state of sufficient “readiness” to proceed with the CDLAC application process. This includes the status of the Project in terms of the development process. All Projects must be in compliance with the City’s land use requirements and adopted plans. In general, a Project will be deemed “not ready” if the administrative or discretionary planning approvals will not be completed by the time of the CDLAC application. Issuance Deposit At the time of application, the Project Sponsor must pay an “Issuance Deposit” of $3,500 to fund preliminary costs incurred by the Housing Authority and its consultants. The remaining balance of the Issuance Fee shall be paid upon the closing of the Bonds. The Issuance Deposit is nonrefundable, unless the Housing Authority declines the proposed financing. If the financing goes forward, the fee will be applied to offset the Issuance Fee as a required cost of issuance at Bond closing. The Issuance Deposit may be waived by the Housing Authority Director or his designee. The Housing Authority Director or his designee may issue a waiver of the issuance deposit upon written request by the Project Sponsor along with evidence or other information establishing payment of such fee would impact the financial feasibility of the Project. The Housing Authority Director may approve, partially approve or deny such waiver within 10 business days of such request by providing written notification to the Project Sponsor. Project Sponsor’s Development Team Project Sponsors must submit a Disclosure Statement, identifying of all parties authorized to negotiate on behalf of the development entity, and identification of the development team responsible for the Project and credentials provided for the development team. The development team must include team members with a successful record of accomplishment in developing at least one affordable rental housing project of the type and scale proposed. Bonds should be placed with investors who are experienced in municipal securities investing and analysis or real estate credit underwriting. Page 54 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • The Process  12 To the extent that consultants/contractors will be providing services on behalf of a Project Sponsor related to the requirements of these Policies, the Project Sponsor shall provide the Housing Authority with a written statement describing their relationship with the consultant/contractor and any rights the consultant/contractor has to income and obligations generated from any proposed bond issuance activity. Project Sponsors must not have a record of violation of Fair Housing and Employment Practice laws or regulations or of affordability clauses in recorded regulatory agreements of the City or other housing agencies or of discrimination. The Housing Authority shall approve each team member proposed by the borrower and reserves the right to require an independent study of the Project, at the sole cost of the Project Sponsor. Housing Authority Bond Counsel & Financing Team The Housing Authority shall reserve the right to select and approve the municipal advisor, underwriter (if applicable), and bond counsel for the financing. The Housing Authority’s municipal advisor, underwriter, and bond counsel shall be selected as provided for by the City’s Charter and attendant Municipal Code and City requirements. Bond counsel and the municipal adviser specifically represent the interests and concerns of the Housing Authority and the City in ensuring the integrity of the bond transaction. The Project Sponsor will reimburse these costs at bond closing. The Project Sponsor may, at its own expense, add additional members to the finance team to represent its interests. Housing Authority Municipal Advisor The municipal advisor for each transaction will prepare a feasibility study considering the economics of the financing, including: evaluation of the financial strength of the project; assumptions regarding income and expense; sources of security bonds in addition to a mortgage on the project; the Project Sponsor’s financial situation and experience in operating and managing multifamily rental projects; marketability of the bonds; and rights and resources of parties to the transaction in the event of default. Further, the municipal advisor will provide finance advice on all relevant issues to best protect the interests of the Housing Authority and the City. Housing Authority Bond Counsel Bond counsel will prepare the necessary legal documentation for the bonds, including provisions regarding compliance with any applicable continuing disclosure requirements, provide and opinion regarding compliance with any applicable continuing disclosure requirements, provide an opinion regarding the validity of the bonds and their tax-exempt status (if applicable), and provide legal advice on relevant issues to best protect the interest of the Housing Authority and the City, including but not limited to the project monitoring requirement for federal tax, State Law and CDLAC purposes. Page 55 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • The Process  13 Bond Underwriter/Remarketing Agent/Private Placement Purchaser The Project Sponsor shall select the construction and permanent lender/bond purchaser and the method of selling bonds for a given transaction subject to the requirements set forth herein and the approval of the Housing Authority. Except as provided in these Policies the Housing Authority will not allow a bond transaction where the tax credit investor is also the bond purchaser or a related party thereto. The practice of allowing the Project Sponsor to propose the lender and bond structure is intended to create an incentive for qualified financial firms to actively work the Project Sponsor to structure and present feasible financing proposals that meet program requirements. In the event the Project Sponsor has not identified a proposed financing structure for a given transaction, the Housing Authority will select an underwriter, lender or private placement purchaser through a request for proposals process. Bond Trustee/Fiscal Agent The Housing Authority shall select the Bond Trustee or fiscal agent (a financial institution designated by the Housing Authority as the custodian of funds and official representative of bondholders). Housing Authority Consideration In consideration of an application to CDLAC for a Bond allocation and the issuance of Bonds by the Housing Authority, the City and the Housing Authority must complete certain actions. Inducement Resolution A Bond inducement resolution (“Inducement Resolution”) will be drafted and approved by the Housing Authority. This is a conditional expression through the public record of the Housing Authority’s “official intent” to issue Bonds for a Project in order to induce others to provide project financing and is required for tax-exempt financing under Treasury Regulation Section 1.150-2(e). Adoption of the inducement resolution establishes, through the public record, the date from which project costs incurred may be determined to be eligible for financing under the Program with proceeds of tax-exempt bonds. Additionally, the Inducement Resolution authorizes the filing of an application to CDLAC on behalf of the Project Sponsor. Adoption of the Inducement Resolution does not represent any commitment by the Housing Authority, City, or the Project Sponsor to proceed with the financing. The Housing Authority retains absolute and unfettered discretion over the issuance of Bonds through adoption of a resolution authorizing such issuance. Adoption of the inducement resolution does not authorize any subordinate financing by the Housing Authority of the City. Furthermore, the adoption of the inducement resolution shall not be construed to signify the Project complies with the planning, zoning, subdivision and building laws and ordinances of the City or suggests that the Housing Authority or the City will grant any such approval, consent or permit that may be required in connection with the development of a given project. Page 56 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • The Process  14 TEFRA Hearing and Approval In accordance with the Tax Equity and Fiscal Responsibility Act (TEFRA) of 1982 and Section 147(f) of the Internal Revenue Code of 1986, the issuance of Bonds must be approved by representatives of the governmental unit with jurisdiction over the area in which the project is located. The TEFRA Hearing will be conducted as a public hearing by the City Council on a date specified in a notice published at least 14 days in advance of the TEFRA hearing in a newspaper of general circulation within the City. The purpose of the public hearing is to provide an opportunity for interested persons to express their views on the proposed Bond issuance and on the nature and location of the Project. City’s Disclosure As a related entity of the City, the Housing Authority will adhere to the City’s Debt Issuance Policies (City Council Policy 220-05) as it may be amended from time to time, which applies to publicly offered bonds. The Housing Authority will present offering statements and disclosure documents for review and approval, as appropriate, by the City. Final Approval Staff Report If recommended for financing by CDLAC, the City’s Housing Department and Housing Authority’s Legal Counsel (including Bond Counsel) will proceed with a recommendation and all necessary documents for final approval of the Bond issuance by the Housing Authority. The report to the Housing Authority shall specify the approvals that are recommended, provide background on the project being financed, describe the financing structure, indicate any exceptions to the City’s investment policy, and describe the financing documents to be approved. The staff report should indicate if a separate City or Housing Authority financial assistance is being provided. However, the terms of that loan should be discussed in a separate staff report which, whenever possible, shall be submitted for the same agenda. The staff report may note that the Bond issue is contingent upon certain other approvals and may identify certain issues to be resolved at a later time. Substantially Final Documents The Housing Authority shall approve documents that are “substantially final” documents. Documents are in “substantially final” form if they identify the final security provisions and financing structure for the transaction. The Housing Authority’s Legal Counsel (including Bond Counsel) shall determine whether documentation is in substantially final form. CDLAC Applications for Bond Allocation Tax-exempt bonds (except 501(c)(3) bonds) require an allocation of Bond authority from CDLAC. To receive the allocation, the Housing Authority must submit an application to CDLAC on behalf of the Project Sponsor. The Inducement Resolution authorizes the submission of an application to CDLAC. The application must demonstrate readiness to proceed with Bond financing and compliance with applicable CDLAC regulations. Project Sponsors approved by CDLAC to receive an allocation of the Page 57 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • The Process  15 State ceiling on qualified tax-exempt bonds must be prepared to use those allocations to issue Bonds within 90 days. The Project Sponsor must pay all required CDLAC fees in advance of application submittal. Housing Authority to File The Housing Authority is the applicant to CDLAC for each Project to be financed with tax-exempt Bonds issued by the Housing Authority. Submittal of the application is at the discretion of the Housing Authority, not the Project Sponsor. The Housing Department will submit all applications to CDLAC on behalf of Project Sponsors. The Housing Authority will not file a Project Sponsor’s CDLAC application unless the Project Sponsor had provided the Housing Authority with the CDLAC Performance Deposit and the Housing Authority’s Issuance Deposit. Project Sponsor to Prepare Application Each Project Sponsor shall take responsibility for preparing the CDLAC application for its Project with input from Housing Authority representatives, including its financing team and bond counsel. The Project Sponsor shall pay to CDLAC the initial filing fee at the time of filing a CDLAC application. The Project Sponsor shall pay to CDLAC the second installment of the filing fee within 30 days of Bond issuance or issuance of the first mortgage credit certificate. Performance Deposit At the time of application to CDLAC, the Project Sponsor must deposit with the Housing Authority one half of one percent (0.05%) of the requested allocation (or such other amount as may be required by CDLAC) as a performance deposit. The deposit will be returned to the Project Sponsor according to CDLAC procedures; the deposit is subject to reversion to CDLAC should the financing not close accordingly. Project Sponsors are advised to read CDLAC regulations. Bond Sale and Closing Timing The Bond sale and closing may commence only after the Housing Authority authorizes the Bond issue, including the distribution of a Preliminary Official Statement, if applicable. Investment Agreements If authorized by the Housing Authority, the Project Sponsor, through its representative, which may include the underwriter or municipal advisor, may solicit investment agreement providers for the purpose of reinvesting Bond proceeds and revenues. The investment agreement providers must meet the Housing Authority’s requirements and the requirements in the Bond resolution and trust indenture for the Bonds. The Housing Authority’s Bond counsel and the municipal advisor shall review the investment agreement solicitation forms, the eligible providers, and the investment agreements. Page 58 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • The Process  16 Housing Authority Indemnity The Project Sponsor shall be required to provide to the Housing Authority, as a part of Bond documentation, an indemnity agreeing to defend and indemnify the Housing Authority, its members, officers, agents, employees, against any claim, judgment or settlement costs arising out of or involved in the financing, or in any of the documentation related thereto and the Project and volunteers to reimburse for all costs, expenses and attorney fees, in issuing the bonds and monitoring the Project. Page 59 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Types of Bonds  17 Types of Bonds The Housing Authority may issue either tax-exempt or taxable bonds (which includes notes or other debt instruments), or both. Taxable bonds would generally be issued only in combination with tax- exempt bonds. Tax-Exempt Private Activity Bonds For all tax-exempt financing, bond and related loan amounts will be subject to the procedures of CDLAC. Private Activity Bonds Private activity bonds require an allocation of bond authority from CDLAC. To get the allocation, the Housing Authority must submit an application to CDLAC on behalf of the Project Sponsor. Submittal of the application is at the discretion of the Housing Authority, not the Project Sponsor. The Project Sponsor must pay all required CDLAC fees in advance of application submittal. 501(C)(3) Private Activity Bonds The Housing Authority may issue bonds described in Section 145 of the federal tax code on behalf of qualified not-for-profit organizations (“501(c)(3) bonds”). The interest on these 501(c)(3) bonds are tax- exempt and the bonds do not require an allocation from CDLAC. However, 501(c)(3) bonds cannot be used with the Low-Income Housing Tax Credit Program (LIHTC). Taxable Bonds The interest on taxable bonds is not exempt from either federal or state taxation. These bonds are not subject to federal volume "cap" limitations and therefore do not require an allocation from CDLAC. Taxable bonds can be used in combination with LIHTC. Taxable bond issues must meet all applicable requirements of State law requirements governing the Housing Authority’s authority to issue bonds and these Policies and Procedures (including rating requirements) and any such added regulations which may, from time to time, be promulgated by the Housing Authority. Bond Rating and Credit Enhancement The Authority requires that bonds for which it acts as issuer have a minimum rating in the “A” category, or its equivalent, or better by Standard and Poor’s (equivalent Moody’s or other bona fide agency rating also acceptable), except as noted below, OR the bonds be privately placed with a “sophisticated investor” as defined by the Housing Authority. The Housing Authority reserves the right to impose these minimum requirements on bond issues for which the Housing Authority issues bonds, or the Housing Authority or City holds a TEFRA hearing. A preferred way of obtaining the required rating on the Bonds is through credit enhancement. Additional outside credit support may be provided in a number of forms, including a letter of credit Page 60 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Types of Bonds  18 (LOC), mortgage backed security (MBS), collateral pledge, bond insurance, etc., by rated, financial strong private institutions, such as government sponsored entities (including the Federal National Mortgage Association [Fannie Mae] or Federal Home Loan Mortgage Corporation [Freddie Mac]), other government insured mortgage programs, or other qualified credit enhancement providers. The form of credit enhancement must provide for a minimum rating in the “A” category by Standard and Poor’s (or the equivalent). The bond rating must be obtained by the closing of the bond issue. As the primary source of security for the repayment of the bonds, the credit enhancement provider will review and approve the borrower (credit, financial capability, experience, etc.) and the Project and its feasibility, including the size of the loan and the terms or repayment, using their own underwriting criteria. Fixed rate bonds can be issued without credit enhancement if the proposed financing structure results in the required minimum rating on the bonds. However, bonds issued without credit enhancement will only be sold to Qualified Institutional Buyer (“QIBs”) as defined under Rule 144A of the Securities Act of 1933 and in minimum $250,000 denominations, unless waived by the Housing Authority Director in his sole discretion. The Housing Authority Director or his designee may issue a waiver of the requirements of a QIB or minimum denominations upon written request by the Project Sponsor along with evidence or other information establishing justification. Upon consultation with its municipal advisor and legal counsel, the Housing Authority Director may approve, partially approve, or deny such waiver within ten (10) business days of such request by providing written notification to the Project Sponsor. Private Placement The bond rating requirement is waived if the entire bond issue is privately placed with QIBs or institutional “accredited investors,” (as defined in Sections 501(a)(1), (2), (3) or (7) of Regulation D promulgated under the Securities Act of 1933 or an entity in which all of the equity owners meet the requirements of at least one such subsection). It is the Housing Authority’s intent that bonds are placed with those investors who are experienced in investing in unrated municipal securities and can conduct their own analysis of real estate credit underwriting. Bonds must be sold in minimum $250,000 denominations, unless waived by the Housing Authority Director in his sole discretion. Unless approved by the Housing Authority, the bonds may not be held at any time by more than 15 investors. The Housing Authority reserves the right to require that a trustee or fiscal agent participate in privately placed bond transactions. All purchasers (including purchasers of participation interest in the bonds) would be required to sign an investor letter (“Investor Letter”) certifying the investor’s sophistication to understand the risk associated with the purchase of the debt instrument and restricting transfer of the bond issue to other Page 61 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Types of Bonds  19 accredited or qualified investors in denominations of $250,000 and greater. While the note remains unrated, its transferability will be restricted to QIBs or institutional accredited investors who sign an Investor Letter and who would represent to the Housing Authority that they are accredited investors or QIBs, are buying for investment and not for resale, and have made due investigation of the information they would deem material in connection with the purchase of the bonds. Page 62 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Use of Bonds  20 Use of Bonds Bonds issued may be used for both construction or rehabilitation and permanent financing. Bond proceeds may be used for costs of land acquisition (up to twenty-five percent (25%) of tax-exempt bond proceeds), construction rehabilitation, improvements, architectural and engineering services, construction interest, loan fees and other capital costs of the project incurred up to sixty days prior to the bond inducement date. Limitations on Use of Bonds Bond proceeds cannot be used to acquire property from a related party, as defined in CDLAC Regulations Section 5000, to the buyer. No more than 2 percent (2%) of the tax-exempt bond proceeds can be used to finance costs of issuance, such as the services of the financing team members, rating and printing of bonds, costs related to bond allocation, etc. Pursuant to federal tax-exempt requirements, if bonds are used for acquisition and rehabilitation, an amount equal to at least 15 percent (15%) of the portion of the acquisition costs of the building and related equipment financed with the proceeds of the bonds must be used for rehabilitation of the Project. The loans are assumable upon transfer of the Project with the approval of the credit enhancement provider or bond purchaser, and the Housing Authority Director or Assistant Director. Page 63 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Costs of Issuance  21 Costs of Issuance The Multifamily Revenue Bond program is self-supporting. Project Sponsors must pay all costs of issuance at bond closing, including, but not limited to, bond counsel, underwriter, trustee and municipal advisor fees, as well as rating agency fees. Any deposits will be credited toward the cost of issuance at closing. Only two percent (2%) of the proceeds of a tax-exempt bond issue may be used to pay costs of issuance. Costs over two percent (2%) must be paid from other sources secured by the Project Sponsor including, potentially, the proceeds of taxable bonds. Housing Authority Fees TEFRA Hearing Fee The City of Chula Vista shall charge a fee of $3,500 for the administrative costs associated with holding a TEFRA hearing relating to a Project. The fee shall be payable prior to the date that notice of the TEFRA hearing is published. No separate TEFRA hearing fee shall be charged if the City or Housing Authority is issuing the bonds for the Project. Issuance Fee The Housing Authority provides its services to a limited segment of the public, more specifically housing developers, to obtain unique services and substantial economic benefits available to them only under the State of California’s tax-exempt bond program to issue the debt, not the least of which may be financing at interest rates substantially lower than conventional financing interest rates, if such rates are available, and/or the ability to obtain financing without equity compensation to the lender. In consideration of its application to the State and issuance of tax-exempt bonds for the financing of such private projects that have a qualified public benefit and economic benefit to the Project Sponsor, the Housing Authority receives compensation for its services in preparing bond issuances by charging an up-front fee payable at bond closing. The Issuance Fee shall be in an amount equal to 20 basis points (0.20%) of the total original principal amount of the bonds (both tax-exempt and taxable) to be issued, with a minimum fee of $15,000. The Issuance Fee shall not exceed the amount otherwise allowed by the Internal Revenue Service (“IRS”) for tax-exempt bonds. An Issuance Deposit of $3,500 will be collected at the time of application submission. The Issuance Deposit is nonrefundable unless the Housing Authority or CDLAC declines the proposed financing. The Issuance Fee Deposit is applied to the Issuance Fee at closing. The Issuance Deposit shall be applied to the Issuance Fee at closing. Page 64 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Costs of Issuance  22 All remaining Issuance Fees will be collected at the closing of the bond issue except for issues requiring State of California volume cap. Issuance Fees for applications requiring State volume cap will be collected at the time of application submission to the State. No other fees will be collected unless and until the project financing closes, with the exception of projects requiring allocation of State volume cap. For projects requiring volume cap, the entire Issuance Fee is forfeited if the financing fails once the volume cap has been awarded by the State. If the application is withdrawn by the Project Sponsor, after submission to the State, but prior to the award of allocation, all fees except the Issuance Fee Deposit are refundable. Annual Administrative Fee The Housing Authority shall charge an annual fee (“Annual Administrative Fee”) to cover its ongoing costs associated with administration and oversight of outstanding bond issues and monitoring of regulatory restrictions (e.g. financial and site monitoring, and annual reporting) for bond issues required throughout the Qualified Project Period and until expiration of the CDLAC Compliance Period. The Annual Administrative Fee shall be in an amount equal to $13,000 for those Projects with 50 units or less, $17,000 for projects of 51 to 199 units and $21,000 for those projects of 200 units or more. Under no circumstances shall the Ongoing Issuer Fee exceed any limitation under Section 148 of the federal tax code. The first year Annual Administrative fee shall be paid at bond closing. Thereafter, the ongoing Annual Administrative will be due and payable, without the requirement for any invoice to be delivered to the Project Sponsor, in advance in equal semi-annual installments by January 15th and July 15th each year. The Annual Administrative fee will be paid throughout the CDLAC Compliance Period and as specified within the Regulatory Agreement, even if bonds are fully repaid prior to the expiration of the compliance period. The Housing Authority Annual Administrative fee shall be paid “above the line,” i.e., on a parity with bond debt service and trustee fees. This parity provides the greatest assurance that the Housing Authority’s fee will be paid, although it may reduce the amount that the Project Sponsor’s lender may be willing to underwrite. Additional monitoring fees may be charged for monitoring affordable housing units not governed by the Regulatory Agreement. Other Fees Additional fees may be applicable on a case-by-case basis for certain issues that arise that are outside the normal bond issuance process. Examples of such fees are, but not limited to, an IRS audit associated with bond issuance. The Housing Authority shall not be liable for any such fees and the sole responsibility of these other fees that may arise shall be the sole responsibility of the Project Sponsor. Page 65 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Costs of Issuance  23 For staff time incurred, including legal counsel, the Project Sponsor may be charged for such time according to the then current hourly full cost recovery rate charged by the Housing Authority or legal counsel. Table 1: Summary of Housing Authority Fees TEFRA Hearing $3,500 Issuance Fee 20 basis points (0.20%) of the total original principal amount of bonds issued Issuance Deposit $3,500 Annual Administrative Fee $13,000 for 50 units or less $17,000 for 51-199 units $21,000 for 200 units or more Other Fees Full cost recovery Page 66 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Refunding/Restructuring/Remarketing  24 Refunding/Restructuring/Remarketing On occasion, a Project Sponsor may ask the Housing Authority to refund its bonds to lower the interest rate, to remarket the bonds with a new credit enhancement, and/or to remarket the bonds as fixed rate bonds. The Project Sponsor will be responsible for all costs and fees related to the refunding. Optional Refunding Reasons to Refund Outstanding Bonds A Project Sponsor may ask the Housing Authority to refund its outstanding bonds for one of several reasons: ▪ Lower the interest rate on fixed rate bonds at the call date (through the issuance of fixed rate or variable rate refunding bonds); ▪ Substitute a new credit structure that was not expressly provided for in the existing documents; or ▪ Restructure the existing debt. Bond Counsel & Financing Team The Housing Authority shall reserve the right to select and approve the municipal advisor, underwriter (if applicable), and bond counsel to implement the refunding. Where possible and if desired by the Housing Authority, the financing team shall consist of the bond counsel, municipal advisor and, if applicable, underwriter that were retained for the original financing. The Project Sponsor will reimburse these costs at bond closing. Legal/Documentation New documents shall be prepared to meet the Housing Authority’s then-current legal, credit, financial, and procedural requirements and applicable then-current state or federal requirements. The Housing Authority shall follow the documentation process applicable to new bonds. Because the Housing Authority’s primary purpose in issuing multifamily housing bonds is to preserve and increase the supply of affordable housing in the Housing Authority, additional public benefit in the form of deeper income targeting, additional rent restrictions, including additional rent restricted units, the extension of the existing term of restrictions, or any combination therefore may be negotiated. The level of additional restrictions for public benefit will be determined in the context of the overall financial feasibility of each financing. If the Bond Regulatory Agreement is amended or terminated and superceded by a new Bond Regulatory Agreement in connection with a resyndication or restructuring, such amended or restated Regulatory Agreement shall be approved by CDLAC. Additionally, if federal or state affordability, income, and/or rent restrictions have changed between the time of the original financing and the refunding bonds, the more restrictive provisions shall apply. If new requirements are more restrictive than existing requirements, the new requirements shall be Page 67 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Refunding/Restructuring/Remarketing  25 applied in phases to new tenants over a period of time, not to exceed five (5) years, as determined by the Housing Department staff and it’s Attorney. The provisions of Section 52080(g) the California Health and Safety Code shall apply to projects financed under this Program, which requires that low-income units remain affordable, except in certain circumstances, until thirty (30) years after the commencement of the Qualified Project Period. Except in limited circumstances, the provisions of Sections 65863.10 and 65863.11 of the California Government Code shall apply to projects financed under this Program and Project Sponsors are advised to review the requirements of these Sections. Bond Maturity Subject to the approval of bond counsel, the final maturity of the refunding bonds may be later than the final maturity of the prior bonds so as to allow the Project Sponsor the longest possible period for repayment under federal law. A minimum of ten percent (10%) of the units in the Project will be required to be set aside for occupancy by households earning at or below fifty percent (50%) of AMI, with rents set at the corresponding affordability level for the term of the restructured bonds. Compliance The Housing Authority shall not proceed with a refunding if the Project is not in compliance with the current regulatory agreement, continuing disclosure reporting, or arbitrage rebate reporting and payment. Fees The Project Sponsor shall pay the following Housing Authority fees in connection with the refunding: ▪ Issuance Fee The Housing Authority shall charge an Issuance Fee in accordance with the Housing Authority’s current policy on Issuance Fees for new projects. ▪ Annual Monitoring Fee The Housing Authority shall continue to charge the same annual fee for monitoring the Project as for the original bonds. Such fee shall not be reduced even if the refunding bond size is lower. The Project Sponsor is also responsible for all other costs of the Housing Authority to cover the issuance of bonds to refund outstanding bonds (e.g. costs of municipal advisor, bond counsel and trustee, if applicable). Page 68 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Refunding/Restructuring/Remarketing  26 Cash Flow Savings Cash flow savings from refunding fixed rate bonds at a lower fixed interest rate or a variable rate shall be applied as follows: ▪ Projects with a Housing Authority or City Loan A portion of the projected cash flow savings, to be determined by the Housing Division, shall be used to accelerate the repayment of the Housing Authority loan, subject to restrictions in existing documents. ▪ Projects with No Housing Authority or City Loan The Housing Authority Housing Department shall require the Project Sponsor to provide affordability or other financial concessions to the Housing Authority as a condition for refunding. Such concessions may include increasing the percentage of affordable units and extending the term of affordability restrictions. Housing Authority Approval All refunding bonds and related legal documentation must be approved by the Housing Authority in accordance with the procedures set for the issuance of new bonds. Page 69 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Refunding/Restructuring/Remarketing  27 Default Refunding In the event of a default on the bonds or the underlying mortgage, a fixed rate bond issue may be refundable in advance of the call date without premium. The issue does not arise with variable rate bonds, as such bonds are callable at any time. Default refunding bonds are an area of potential sensitivity for the Housing Authority as it will not want a Project Sponsor to manufacture a default to take advantage of more favorable interest rates. Bond Counsel & Financing Team The Housing Authority shall reserve the right to select and approve the municipal advisor, underwriter (if applicable), and bond counsel to implement the refunding. Such selection shall be made in compliance with the City’s Charter and attendant Municipal Code requirements. Where possible and if desired by the Housing Authority, the financing team shall consist of the bond counsel, municipal advisor and, if applicable, underwriter that were retained for the original financing. The Project Sponsor will reimburse these costs at bond closing. Confirming the Default To confirm a default, the Housing Authority and CDLAC must receive a notice from an independent party, such as the bond trustee. If applicable, notice of cash flow insufficiency is then filed as part of the Continuing Disclosure Certificate. In addition, the Housing Authority shall retain, at the expense of the Project Sponsor, an independent feasibility consultant to review the default. The Housing Authority will proceed with the transaction only if a review by staff and the independent consultant indicates that: ❑ Net cash flow from the Project is currently insufficient to pay debt service on the outstanding bonds and is unlikely to do so within a reasonable period; ❑ The Project is being operated in accordance with reasonable real estate management practices and the net operating income has not been artificially reduced by failing to rent units actively, inflating operating expenses, or other reasons within the control of the Project Sponsor; and ❑ The Project Sponsor has provided audited operating statements, Continuing Disclosure filings (if applicable), and arbitrage rebate reports for all years, has cooperated in providing requested information, and has used operating income and other resources to pay debt service. Additional Requirements ❑ Indemnification The Housing Authority shall be indemnified as to any costs incurred as a result of the refunding, under terms approved by the Housing Authority’s Legal Counsel. Such indemnification shall come from a party or parties with adequate net worth or other financial capacity and whose assets are not limited to ownership of the Project. Page 70 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Refunding/Restructuring/Remarketing  28 ❑ Future Debt Coverage The analysis of the feasibility consultant shall show that, upon the refunding, the Project’s current net operating income will be at least sufficient to pay the revised debt service plus a reasonable coverage ratio (or adequate non-bond proceeds will be available to cover such deficiencies). In other words, the Housing Authority shall not proceed with the refunding if it will not cure the cash flow problem. ❑ Bond Counsel Review Bond counsel shall have determined that the original bond and disclosure documents provided adequate disclosure of such a potential redemption and that the provisions of the prior documents have been satisfied. ❑ Compliance Fees The Housing Authority shall not proceed with a refunding if the Project is not in compliance with the current regulatory agreement, continuing disclosure reporting, or arbitrage rebate reporting and payment. The fees and expenses of the feasibility consultant, municipal advisor and bond counsel shall not be contingent on their findings or completion of a refunding. The Housing Authority shall require that the Project Sponsor deposit the estimated fees and expenses with the Housing Authority prior to the commencement of any analysis. Affordability Restrictions The affordability requirements for a default refunding shall be the same as those listed under “Legal/Documentation” for an optional refunding. Housing Authority Approval The Development Services Department’s Housing Division, in conjunction with the Finance Department and Housing Authority’s Legal Counsel, shall obtain final Housing Authority approval authorizing the bond issue and execution of the relevant documentation. A recommendation of default refunding by Housing Authority staff shall only be given after an initial analysis of feasibility is performed, a default is confirmed, and it is determined that a refunding will cure the cash flow problem. Housing Authority Fees The Housing Authority shall charge the same Issuance Fee and annual monitoring fee that it otherwise would in conjunction with a new bond issue. Page 71 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Refunding/Restructuring/Remarketing  29 REMARKETING A Project Sponsor may ask the Housing Authority to remarket outstanding bonds under one of three basic scenarios: (1) converting variable rate bonds to fixed rate bonds; (2) a mandatory tender of bonds; or (3) substituting a new credit enhancement for the bonds in accordance with existing documentation. Bond Counsel & Financing Team The Housing Authority shall reserve the right to select and approve the municipal advisor, underwriter (if applicable), and bond counsel to implement the refunding. Where possible and if desired by the Housing Authority, the financing team shall consist of the bond counsel, municipal advisor and, if applicable, underwriter that were retained for the original financing. The Project Sponsor will reimburse these costs at bond closing. Legal/Documentation A remarketing of fixed rate bonds will not require new legal documentation. However, the Housing Authority’s Legal Counsel, in conjunction with bond counsel, may require a new disclosure document. A remarketing of bonds with a new credit enhancement may require amended documentation, as well as a new disclosure document, as determined by the Housing Authority’s Legal Counsel and bond counsel. Fees A remarketing will not result in the payment of additional or revised Housing Authority issuance or annual fees. However, the Housing Authority shall recover its actual remarketing administrative costs incurred (estimated to range from $10,000 to $25,000) from the Project Sponsor. Housing Authority Approval All remarketed bonds and any related documentation shall be approved by the Housing Authority prior to any remarketing. Page 72 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  30 Post-Issuance Compliance Procedures As an issuer of Bonds awarded allocations from CDLAC, the Housing Authority must attest to the adherence with CDLAC requirements for each development that is still in its monitoring period to ensure that Bond funds are spent appropriately and to ensure that rents assessed to tenants meet the terms of the Bond Regulatory Agreement. The Housing Authority performs Bond compliance monitoring duties for CDLAC as defined under Section 5220 of the CDLAC regulations. The Housing Authority shall maintain documents related to its issuance of the Bonds, loan, and ongoing monitoring of the Project in compliance with the City’s Document Retention Policy. Use of Bond Proceeds and Bond-Financed or Refinanced Assets The Project Sponsor shall be responsible for: ▪ Monitoring the use of bonds proceeds and the use of bond-financed or refinanced assets (e.g. facilities, furnishings or equipment) throughout the term of the bonds to ensure compliance with covenants and restrictions set forth in the documents relating to the bonds; ▪ Maintaining records identifying the assets or portion of assets that are financed or refinanced with proceeds of each issue of bonds, including a final allocation of bond proceeds; ▪ Consulting with bond counsel and other legal counsel and advisors in the review of any contracts or arrangements involving use of bond-financed or refinanced assets to ensure compliance with all covenants and restrictions set forth in the documents related to the bonds; ▪ Maintaining records for any contracts or arrangements involving the use of bond-financed or refinanced assets; ▪ Conferring at least annually with personnel responsible for bond-financed or refinanced assets; and, ▪ The extent that the Project Sponsor discovers than any applicable tax restrictions regarding use of bond proceeds and bond-financed or refinanced assets will or may be violated, consult promptly with Bond Counsel and other legal counsel and advisors to determine a course of action to remediate all nonqualified bonds, if such counsel advises that a remedial action is necessary. Record Keeping The Project Sponsor shall be responsible for maintaining the following documents for the term of each issue of bonds (including refunding bonds, if any), and at least three additional years: ▪ A copy of the bond closing transcript(s) and other relevant documentation delivered to the Project Sponsor or in connection with the closing of the bond issue; Page 73 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  31 ▪ A copy of all material documents relating to capital expenditures financed or refinanced by bond proceeds, including (without limitation) construction contracts, purchase orders, invoices, trustee requisitions and payment records, draw request for bond proceeds and evidence as to the amount and date of each expenditure of bond proceeds, as well as documents relating to costs paid or reimbursed with bond proceeds and records identifying the assets or portion of assets that are financed or refinanced with bond proceeds, including a final allocation of bond proceeds; ▪ A copy of all contracts and arrangement involving the use of bond-financed or refinanced assets; and ▪ With respect to any investment of bond proceeds or collateral securing the repayment of the bonds, a copy of all records of investments, investment agreements, arbitrage reports and underlying document, including trustee or fiscal agent statements, in connection with any investment agreements, and copies of all bidding document, if any. For housing bond financings subject to the requirement of Section 142 (d) of the Code, as amended, the Project Sponsor shall be responsible for maintaining, until the end of the qualified project period within the meaning of Section 142 (d)(2)(A) of the Code, and at least three (3) additional years a copy of all records evidencing compliance with the requirements of Section 142 (d) of the Code, including tenant income verifications, leases and tenant records. Such records shall be made available to the Housing Authority at its reasonable request. Records for the current year and preceding two (2) years shall be available at the Project site at such time the Housing Authority provides notification of a monitoring of the Project at the site. The Project Sponsor, in the document relating to the bonds and/or other documents finalized at or before the issuance of the bonds, shall agree to the forgoing records retention requirements and procedures. Annual Certification of Public Benefits and On-going Compliance As required by CDLAC regulations, all projects that receive a CDLAC bond allocation and are within an existing regulatory period and/or compliance period, shall be monitored by the Housing Authority for compliance with the terms and conditions of the CLDAC resolution. The Housing Authority may choose to hire an outside compliance monitoring firm to assist with such requirements. The Housing Authority utilizes FOCUS® a housing compliance monitoring and reporting software for submittal of Project rent rolls. It is acknowledged that the Housing Authority is required to collect, review, and submit to CDLAC the Certification of Compliance I, Certification of Compliance II and CDLAC Completion Certificate for each issuance bonds, when applicable. Each year, by March 1st, the Housing Authority submits such Page 74 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  32 certifications to CDLAC in such format as required by CDLAC, and must certify as the issuer that all of its Bond-funded developments are complying with the features originally identified in application to CDLAC and contained in Attachment A to the CDLAC resolution. Annually, on or before February 1st of each year until the expiration of the later of the qualified project period or compliance period under the applicable CDLAC Resolution and Regulatory Agreement, Project Sponsor and/or their representatives, are required to submit to the Housing Authority the following information and forms as follows: ❑ Certification of Delivery of Public Benefits and Continuing Program Compliance (attach validating back-up information on services contracts, services types, and services frequency) ❑ Annual QRRP Certification of Compliance I or II form, as applicable (Must be submitted and signed on project sponsor letterhead) ❑ IRS Form 8703 Annual Certification of a Residential Rental Project ❑ If property did not already submit its rent roll for this previous year via FOCUS®, the City’s/Housing Authority’s housing compliance monitoring and reporting software, then submit rent roll as of December 30th. Else, resubmission of September 30th rent rolls is not required. ❑ If CDLAC adopted a new Exhibit A to its CDLAC resolution in the most recent year, the most recent Exhibit A ❑ If the project ownership has changed since the Bonds were first issued, provide: o Completed Legal Status Questionnaire (attached to Certification of Delivery of Public Benefits form) o W-9 Attachment o Partnership organizational chart with principals and officers of each entity of the new partnership identified (see sample forms attached). Project Sponsors and/or representatives are required to maintain the above records and any other records required by the Housing Authority or CDLAC for the term prescribed in the Bond, Regulatory Agreement, or any other legal requirement (including applicable period which may be subject to audit) whichever is the longest. All required forms for submittal to the Housing Authority for monitoring purposes can be found on the City of Chula Vista Rental Housing Compliance website at Page 75 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  33 http://www.chulavistaca.gov/departments/development-services/housing/building- affordable-housing/rental-housing-compliance. The Housing Authority shall review the Project Sponsor’s Certificate of Compliance, all other documents submitted and may request additional supporting documents that evidence compliance as necessary in the sole reasonable discretion of the Housing Authority. IRS Form 8703 The Project Sponsor is required to submit IRS Form 8703 annually to the IRS on or before each March 31st as long as the bonds are outstanding. Form 8703 provides annual information to the IRS to help them determine whether a project continues to be a qualified residential rental project under Section 142 (d) of the Code, as amended. Monitoring For projects receiving an allocation of bond authority from CDLAC after December 31, 2016, CDLAC requires that a review of twenty percent (20%) of all management files associated with federally bond- restricted units either on-site or electronically be performed upon project completion and a minimum of every three (3) years thereafter. Non-Compliance For projects which are not satisfying the terms and conditions stated in the CDLAC Resolution, the Housing Authority will provide written notification of such non-compliance to the Project Sponsor and provide two (2) weeks for Project Sponsors to provide any further information or documentation that may demonstrate continuing compliance. Should the Housing Authority determine such non- compliance continues to exist, the Housing Authority will work with its legal counsel and CDLAC staff to institute remedial action, as necessary, including an action for specific performance or other available remedy, as may be specified within the Regulatory Agreement, Loan Agreement or other loan related documents. The Housing Authority may disqualify a bond application from any Project Sponsor or member of the development partnership who is not in compliance with the Housing Authority’s or CDLAC’s post issuance compliance requirements, guidelines, policies as determined by the Housing Authority and/or by CDLAC. Transfer of Ownership The Housing Authority reserves the right to approve any voluntary change in ownership of a bond- financed project (i) to another owner; (ii) that results in a transfer of fifty percent (50%) or more of the total equity interests in a project owner or (iii) that results in a transfer of any general partner or managing member interest in the project owner. Such approval of transfer of ownership shall be at the discretion of the Housing Authority, subject to the additional notification and approval of CDLAC and any additional requirements set for in the applicable tax certificate or Regulatory Agreement. The Housing Authority shall review management practices of the Page 76 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  34 proposed transferee’s current and previously owned multifamily housing rental properties. Any proposed transferee (including individuals with an ownership) whose currently owned multifamily housing rental properties have been found by the Housing Authority to have deficiencies that have not been resolved within the time frame prescribed by the City, Housing Authority, or other local government authorities, may not assume ownership of or an ownership interest in an any bond- financed project. The Housing Authority may initiate additional inspections to verify findings. Carryforward Election With respect to each allocation of tax-exempt private activity bond issue authority to the Housing Authority in a given calendar year for which less than all of the allocation volume cap was used, the Housing Authority staff shall contact CDLAC requesting confirmation of the amount, if any, of carryforward election the Housing Authority shall make under Section 146(f) of the Code and the Housing Authority will timely file a Form 8328 with the IRS. Arbitrage Rebate Compliance The Project Sponsor shall comply with all applicable federal tax laws set forth in the tax or arbitrage certificate and bond documents, including arbitrage rebate compliance. Upon request, the Project Sponsor shall provide the Housing Authority documentation that verifies the Project Sponsor’s compliance with federal tax laws set forth in the tax or arbitrage certificate and bond documents, including rebate compliance reports. Other Required Disclosures The Project Sponsor shall be solely responsible of any and all disclosures under any applicable Securities and Exchange Commission and any Municipal Securities Rulemaking Board (MSRB) rules, requirements and regulations, including but not limited to fixed rate bond issuance with Fannie Mae and/or Freddie Mac involvement. Page 77 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  35 SAMPLE FORMS TO FOLLOW Page 78 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  36 Page 79 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  37 Page 80 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  38 Page 81 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  39 Page 82 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  40 Page 83 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  41 Page 84 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  42 Page 85 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  43 Page 86 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  44 Page 87 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  45 Page 88 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  46 Page 89 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  47 Page 90 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • INDEX  48 INDEX Bond Issuance Application and supporting documents requirements ................................................................................ 9 Fee Structure for issuance and ongoing annual administration................................................................ 21 Requirements for inducement & TEFRA Resolutions and TEFRA public hearings .............................. 13 Parameters for issuer liability for bond issuance or repayment of bonds ................................................. 1 Indemnification requirements with respect to the financing and the project ......................................... 15 Procedures and requirements for private placement purchases and public sales of bonds ................. 17 Underwriter selection criteria and procedures............................................................................................ 13 Credit enhancement requirements ................................................................................................................ 17 Bond Counsel selection criteria and procedures ......................................................................................... 12 Loan to value restrictions/limits ...................................................................................................................... 8 Interest rate restrictions/limits ......................................................................................................................... 8 Requirements for offering materials or disclosure documents ................................................................. 14 Maximum loan amount .................................................................................................................................... 8 Minimum bond ratings ................................................................................................................................... 16 Minimum/maximum bond denominations ................................................................................................. 17 Limitations on uses of bond proceeds .......................................................................................................... 20 Rent and income limitations (if applicable) ................................................................................................... 4 Affordability requirements .............................................................................................................................. 5 Public benefit requirements ............................................................................................................................. 4 Debt to income requirements ........................................................................................................................... 8 Local review and approval requirements .................................................................................................... 11 Review procedures and requirements for financing structure, financing documents and tax-exempt status ............................................................................................................................................. 11 Developer and ownership partnership requirements and limitations ....................................................... 9 Property management requirements and limitations ............................................................................... n/a Management plan requirements ................................................................................................................. n/a Page 91 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • INDEX  49 Procedure for determining developer fee and developer fee limits ........................................................... 8 ID any third-party contractors and describe rights, obligations and limitations of third- party contractors .............................................................................................................................................. 12 Exceptions/waivers of policy requirements and procedures for requesting a waiver ..................... 11, 18 Post Issuance Compliance Identification of third-party contractors engaged in compliance verification, reporting and/or auditing and describe rights, obligations and limitations of third-party contractors ............................ 30 Identification of parties responsible for compliance verification and reporting..................................... 29 Commencement of Qualified Project Period and reporting requirements and procedures ................................................................................................................................................ 30 Compliance forms for reporting .................................................................................................................... 34 Compliance verification, reporting and auditing procedures: .................................................................. 30 Affordability (i.e.: # of units at 50% AMI and 60% AMI) (QRRP only) ...................................................... Income limits (QRRP only) ............................................................................................................................ Utility allowances (QRRP only) ..................................................................................................................... Service amenities and other public benefits required by CDLAC resolution.................................................. Arbitrage rebate............................................................................................................................................... Frequency of compliance verification, reporting and audits ..................................................................... 30 Issuer document retention procedures and time limits ............................................................................. 29 Site-based document retention procedures and time limits ...................................................................... 30 Procedures for reporting compliance/non-compliance to regulatory agencies and other external entities (i.e.: CDLAC, TCAC, etc.) .................................................................................................. 30 Criteria and procedures for seeking revised resolutions and/or regulatory agreements......................... Non-compliance correction procedures and penalties ............................................................................... 32 Page 92 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Form Rev 9/30/2025 HA RESOLUTION NO. __________ RESOLUTION OF THE CHULA VISTA HOUSING AUTHORITY APPROVING REVISIONS TO ITS MULTIFAMILY MORTGAGE REVENUE BOND POLICIES WHEREAS, the California Debt Limit Allocation Committee (CDLAC) was created to set and allocate the annual debt ceiling of the State of California (State), and administer the State’s tax-exempt bond program to issue the debt through its adopted CDLAC Regulations; and WHEREAS, the Chula Vista Housing Authority (the “Housing Authority”) is authorized to serve as a bond issuer for tax-exempt bonds awarded by CDLAC to affordable multifamily housing projects in Chula Vista; and WHEREAS, CDLAC Regulation Section 5031(c) requires that all issuers of CDLAC bonds maintain bond issuance and post-issuance compliance policies; and WHEREAS, the Housing Authority adopted the Chula Vista Multifamily Mortgage Revenue Bond Policies (the “Bond Policies”) consistent with CDLAC’s regulations and guidance and in compliance with IRS requirements on April 10, 2018, pursuant to Housing Authority Resolution No. 2018-001, and later amended the Bond Policies on May 21, 2024, pursuant to Housing Authority Resolution No. 2024-004; and WHEREAS, upon review of the amended Bond Policies, CDLAC requested additional revisions to the document in order to clarify certain requirements, procedures, and deadlines; and WHEREAS, the Housing Authority now desires to amend the Bond Policies in order to accept the changes requested by CDLAC, and to authorize the Director of the Housing Authority to make additional minor administrative or clerical changes as needed. NOW, THEREFORE, BE IT RESOLVED by the Chula Vista Housing Authority, that it (1) approves the revisions to the Chula Vista Multifamily Mortgage Revenue Bond Policies in the form presented as Exhibit 1 to this resolution, (2) authorizes and directs the Authority to submit the revised Bond Policies to CDLAC, and (3) authorizes the Housing Authority’s Director to make additional minor administrative or clerical changes as may be requested by CDLAC or as deemed necessary by the Housing Authority’s Director, and as approved by Legal Counsel. Presented by Approved as to form by Stacey Kurz Marco A. Verdugo Director of Housing and Homeless Services Legal Counsel Page 93 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority Multifamily Mortgage Revenue Bond Policies Adopted by HA Resolution 2018-01 Revised 04-30-2018 and 05/21/2024 The City of Chula Vista expands the supply of affordable housing by issuing multifamily mortgage revenue bonds through the Chula Vista Housing Authority (“Housing Authority”), as allocated by the California Debt Limit Allocation Committee (“CDLAC”). Since 1993, the Housing Authority has issued mortgage revenue bonds to private developers to finance low- and moderate-income housing for families. Pursuant to CDLAC Regulation 5031(c), as an Issuer of bonds, the Housing Authority must have written policies setting forth its bond issuance procedures and post-issuance compliance procedures in conformance with the governing laws and regulations. 276 FOURTH AVENUE • CHULA VISTA • CA • 91910 • (619) 691-5047 • affhousing@chulavistaca.gov www.chulavistaca.gov/housing Page 94 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Summary  1 Chula Vista Housing Authority Multifamily Mortgage Revenue Bond Policies Summary Federal, state, and local legislation authorizes issuance of mortgage revenue bonds (“Bonds”) by local governments to finance the development, acquisition, construction and rehabilitation of multifamily housing rental projects (a “Project” or “Projects”) by a private property owner/developer, also known as the “Project Sponsor”. The interest on the Bonds is exempt from federal and state taxation. As a result, Bonds provide below market financing for qualified multifamily rental projects located in the City of Chula Vista (the "City”). This program (“Bond Program”) is administered by the Housing Authority and uses tax-exempt mortgage revenue bonds (“Bonds”) issued by the Housing Authority. There is no direct liability of the City or the Housing Authority in connection with the issuance or repayment of the Bonds. There is no pledge of the City’s or Housing Authority’s faith, credit, or taxing power and the Bonds do not constitute general obligations of the City or Housing Authority because the security for repayment of the bonds is limited to Project revenue and other sources specified in the documentation for the financing of the Project. Project loans are, in most cases, structured as a real estate loan, with the obligation to repay the bonds secured by a first deed of trust on the Bond-financed property. The program is self-supporting with the owner responsible for the payment of all costs of issuance and other costs and repayment of the obligations. • • • Our mission is to build strong families and to strengthen the social and physical fabric of the Chula Vista community by creating and sustaining decent, safe and affordable living environments to foster stability in the home and the neighborhood and empowering our diverse residents as change agents for their quality of life. Page 95 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Summary  2 The goals of the Bond financing program include: ❑ Preserving and increasing availability of quality affordable rental housing; ❑ Encouraging economic integration within residential neighborhoods; and ❑ Maintaining and enhancing a quality living environment for residents of affordable housing communities and the surrounding properties. All Projects requesting mortgage revenue Bond issuance are subject to the requirements in these guidelines. The Housing Authority reserves the right to make exceptions, at its sole discretion when deemed necessary. The Housing Authority guidelines and policies are subject to change. Page 96 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Issuer  3 Issuer The Chula Vista Housing Authority (the “Housing Authority”) shall be the issuer of all Bonds financing Projects within the City, except as provided below. Bonds for Projects are intended to be non-recourse conduit financing in which the Housing Authority or the City will not be responsible for the repayment of debt. Outside Issuers Project Sponsors considering the use of any Bond issuers other than the Housing Authority (“Outside Issuers”) should contact Housing Authority staff and obtain advance written approval prior to proceeding. The required Housing Authority public hearing for approval of Bonds by Outside Issuers will be held only if the Project Sponsor can demonstrate that an Outside Issuer is required to ensure project viability, such as when a financing proposal is part of a pooled issuance involving projects located in multiple jurisdictions and such pooled issuance results in significantly lower project costs. Any approvals by the Housing Authority on behalf of an Outside Issuer will include a provision that the owner, operator, or manager of the proposed project will not change without the prior written approval of the Housing Authority. It shall be the Housing Authority’s policy to require such Outside Issuers to assume full responsibility for issuance and on-going compliance of the Bond issue with applicable state and federal laws. Page 97 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Public Benefit  4 Public Benefit Each Project to be financed must demonstrate tangible public benefits to the community in which it resides before the Housing Authority is willing to act as an issuer for tax-exempt multifamily mortgage revenue Bonds. These benefits must conform to all federal and state requirements for tax-exempt multifamily mortgage revenue Bonds. Affordability for Rental Projects To ensure a public benefit, Project Sponsors must set aside a minimum number of units in each project for lower income households. These units must be rented to households at or below 50% or 60% of Area Median Income (“AMI”). For the purposes of this Bond Program, Area Median Income or AMI shall have the same meaning as “area median gross income” as defined under 26 U.S. Code Section 142(d); the income limits for each percentage of AMI shall be consistent with the Multifamily Tax Subsidy Project (“MTSP”) income limits published annually by the United States Department of Housing and Urban Development (“HUD”). The restricted units must proportionately reflect the mix of all units in the project, be distributed throughout the project, and have the same floor area, amenities, and access to project facilities as market-rate units. Eligible Projects must meet the following minimum set-aside requirements: Federal ❑ Twenty percent (20%) of units shall be rented to households earning at or below fifty percent (50%) of AMI.. OR ❑ Forty percent (40%) of units shall be rented to households at or below sixty percent (60%) of AMI. State ❑ A minimum of ten percent (10%) of the units shall be rented to households earning at or below 50% of AMI. Rents for these units shall be set according to the Rent Restrictions section below. Project owners must certify their tenants’ eligibility annually or as otherwise required by the Housing Authority in the applicable Regulatory Agreement. If a tenant is no longer eligible, the next available unit (if federal tax credits apply to the project, in the building in which the unit was located) must be rented to a new eligible tenant and the current tenant’s rent can be raised to a market level. A unit occupied only by students may not count towards the set-aside requirement. Page 98 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Public Benefit  5 Rent Restrictions For purposes of the Bond Program, the maximum rent calculations for those units required to meet the minimum set-aside required and the adopted CDLAC Resolution shall be consistent with the methodology and rent restrictions set forth annually by the California Tax Credit Allocation Committee (“CTCAC”). Maximum rents are further reduced by a utility allowance for tenant-paid utilities in the amounts determined by the Housing Authority. In the event tax-exempt bond projects are subject to another regulatory agreement from a public agency, the more restrictive rents shall apply. If a set-aside unit is occupied by a household receiving a tenant- based rental subsidy such as a Section 8 Housing Choice Voucher, the gross rent may exceed the applicable unit restrictions as long as the household is receiving at least one dollar ($1) in federal subsidy. Term of Rental and Affordability Restrictions The Project must remain as rental housing and continuously meet the affordability requirements for the longest of (a) the Qualified Project Period (as defined in Internal Revenue Code of 1986), (b) such period as may be required by CDLAC (typically, 55-years from the date of the original issuance), (c) as long as the Bonds remain outstanding, or (d) such period as may be required, in the opinion of the City’s or Housing Authority’s Bond Counsel, to meet federal or state law. The City and/or Housing Authority reserve the right to impose additional affordability restrictions if the City or Housing Authority determines it is necessary to be competitive in the state allocation process or in compliance with applicable State laws. The affordability covenant remains in effect for not less than the agreed upon term, which may continue beyond the Qualified Project Period. It is intended that the affordability term will remain in effect beyond the retirement of the Bonds and expiration of any loan agreements. Projects that are financed with Low-Income Housing Tax Credits or any other public funds will be required to meet the requirements of TCAC or the more restrictive requirements of the applicable financing sources. A Bond Regulatory Agreement (“Regulatory Agreement”), consistent with the requirements of Section 5220 of the CDLAC regulations, containing the rental and affordability restrictions and all other commitments outlined in the CDLAC resolution and its Exhibits, to be incorporated and made an attachment of the Regulatory Agreement, will be recorded against the property and must be complied Page 99 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Public Benefit  6 with by subsequent owners, as the Regulatory Agreement is a covenant that runs with the land. The Regulatory Agreement will be terminated upon expiration of restrictions or in the event of casualty loss or foreclosure, and the subsequent retirement of Bonds as a result of foreclosure. Project Sponsors must regularly verify compliance with the affordability terms outlined within the applicable Regulatory Agreement(s). The Housing Authority reserves the right to impose additional reporting requirements to ensure ongoing compliance. State law requires advance notice and other requirements upon the termination of the affordability requirements. Some requirements also place restrictions on the sale of previously affordable housing projects. In addition, at the conclusion of the required affordability period, the rent of those “in -place” tenants will continue to be governed by the applicable affordability restriction, so long as those tenants continue to live in the development. Page 100 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Priority Projects  7 Page 101 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Loan Terms & Conditions  8 Loan Terms & Conditions The terms and conditions of mortgage revenue bond loans shall be in accordance with CDLAC and TCAC requirements and the requirements of the lending institution specific to the Project. The following represents general terms. Maximum/Minimum Loan Amount The bond issuance and related loan amounts for individual projects are based upon project costs, interest rates, revenues available to pay debt service and the appraised value of the Project being financed. The Housing Authority may consider multiple properties as part of a single bond financing on a case by case basis. Interest Rate The effective Mortgage Rate is the aggregate of the applicable bond rate and the add-on fees charged under the program, such as lender, trustee, issuer’s fee, etc. The bond rate, for fixed rate bonds, is determined at the time of a bond sale and the resulting mortgage is typically below conventional mortgage rates. Loan Term The Project loans generally reflect a 30-year amortization schedule, although the bond maturity may be shorter. Affordability Term The affordability term is the lesser of 55 years or the longest affordability period of other financing sources, and is enforced through a recorded regulatory agreement. Page 102 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Application Requirements  9 Application Requirements The Housing Authority requires each Project Sponsor complete a Housing Authority application. Applications must be submitted for all Projects seeking Bond financing where the Housing Authority will act as issuer or where the Housing Authority will sponsor or hold a TEFRA hearing. This includes all new money issuances requiring an allocation of bond authority from the California Debt Limit Allocation Committee (CDLAC), new 501(c)(3) issues, and refunding of existing bond issues. Applications must be submitted at least 90 days before the relevant CDLAC application deadline to allow enough time for Housing Authority review and approval. Applications that do not need CDLAC approval must be submitted at least 90 days before the desired Bond closing date. Any information provided in the application must be considered public information by State law. ❑ Chula Vista Affordable Housing Application ❑ Relocation Plan, if applicable – As required by CDLAC regulations (Section 5211 “Tenant Relocation”) if low-income tenants will receive a rent increase exceeding five percent (5%) of their current rent, then a relocation plan is required to address economic displacement. The relocation plan should be consistent with the Uniform Relocation Assistance and Real Property Acquisition Policy Act (42 U.S.C. 61). Project Sponsor Qualifications, Experience and Performance Project Sponsors, or its general partners, including administrative and managing general partners, or a principal in each, are required to have previous experience in the development and ownership of multifamily rental affordable housing projects. Housing Authority staff will review and approve the qualifications of the Project Sponsor and all partners in the ownership entity. As part of the Affordable Housing Application, Project Sponsors are required to submit: ❑ Proposed or executed organizational documents of the Project Sponsor and ownership entity, including a detailed description of the role of each, if separate entities, throughout the regulatory period of the Project; and ❑ Evidence of successfully participating in at least two projects over ten units in size and subject to a recorded regulatory agreement for at least three years prior to the application. The Housing Authority may require evidence projects have maintained positive operating cash flows and that all required reserves have been funded throughout the ownership period. Project Sponsors who are unable to meet qualifications and experience requirements will be required to partner with an entity that does have the necessary experience. Page 103 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Application Requirements  10 The Housing Authority will NOT consider an application from a Project Sponsor if the following conditions exist: ❑ Failure to use an allocation from CDLAC; ❑ Out of compliance with or in default of the terms of any other City/Housing Authority financings or loans. Bonds & Tax Credits Due to Internal Revenue Service (IRS) limitations applicable to the fees charged by issues of tax-exempt bonds where the bond purchaser and the tax credit investor are the same or related entities, the Housing Authority will not issue bonds for Projects where the tax credit investor is all the same or a related entity to the bond purchaser. Exceptions may be granted on a case-by-case basis, at the discretion of the Housing Authority. Page 104 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • The Process  11 The Process Application Applications must be submitted for all Projects seeking Bond financing where the Housing Authority will act as issuer or where the Housing Authority will sponsor or hold a TEFRA Hearing. Housing staff will review the application for feasibility. The Housing Authority reserves the right to require an independent study of any proposed Project, with all associated costs to be borne by the Project Sponsor. Determination of Readiness In its review of the submitted application, Housing staff shall determine if the project is in a state of sufficient “readiness” to proceed with the CDLAC application process. This includes the status of the Project in terms of the development process. All Projects must be in compliance with the City’s land use requirements and adopted plans. In general, a Project will be deemed “not ready” if the administrative or discretionary planning approvals will not be completed by the time of the CDLAC application. Issuance Deposit At the time of application, the Project Sponsor must pay an “Issuance Deposit” of $3,500 to fund preliminary costs incurred by the Housing Authority and its consultants. The remaining balance of the Issuance Fee shall be paid upon the closing of the Bonds. The Issuance Deposit is nonrefundable, unless the Housing Authority declines the proposed financing. If the financing goes forward, the fee will be applied to offset the Issuance Fee as a required cost of issuance at Bond closing. The Issuance Deposit may be waived by the Housing Authority Director or his designee. The Housing Authority Director or his designee may issue a waiver of the issuance deposit upon written request by the Project Sponsor along with evidence or other information establishing payment of such fee would impact the financial feasibility of the Project. The Housing Authority Director may approve, partially approve or deny such waiver within 10 business days of such request by providing written notification to the Project Sponsor. Project Sponsor’s Development Team Project Sponsors must submit a Disclosure Statement, identifying of all parties authorized to negotiate on behalf of the development entity, and identification of the development team responsible for the Project and credentials provided for the development team. The development team must include team members with a successful record of accomplishment in developing at least one affordable rental housing project of the type and scale proposed. Bonds should be placed with investors who are experienced in municipal securities investing and analysis or real estate credit underwriting. Page 105 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • The Process  12 To the extent that consultants/contractors will be providing services on behalf of a Project Sponsor related to the requirements of these Policies, the Project Sponsor shall provide the Housing Authority with a written statement describing their relationship with the consultant/contractor and any rights the consultant/contractor has to income and obligations generated from any proposed bond issuance activity. Project Sponsors must not have a record of violation of Fair Housing and Employment Practice laws or regulations or of affordability clauses in recorded regulatory agreements of the City or other housing agencies or of discrimination. The Housing Authority shall approve each team member proposed by the borrower and reserves the right to require an independent study of the Project, at the sole cost of the Project Sponsor. Housing Authority Bond Counsel & Financing Team The Housing Authority shall reserve the right to select and approve the municipal advisor, underwriter (if applicable), and bond counsel for the financing. The Housing Authority’s municipal advisor, underwriter, and bond counsel shall be selected as provided for by the City’s Charter and attendant Municipal Code and City requirements. Bond counsel and the municipal adviser specifically represent the interests and concerns of the Housing Authority and the City in ensuring the integrity of the bond transaction. The Project Sponsor will reimburse these costs at bond closing. The Project Sponsor may, at its own expense, add additional members to the finance team to represent its interests. Housing Authority Municipal Advisor The municipal advisor for each transaction will prepare a feasibility study considering the economics of the financing, including: evaluation of the financial strength of the project; assumptions regarding income and expense; sources of security bonds in addition to a mortgage on the project; the Project Sponsor’s financial situation and experience in operating and managing multifamil y rental projects; marketability of the bonds; and rights and resources of parties to the transaction in the event of default. Further, the municipal advisor will provide finance advice on all relevant issues to best protect the interests of the Housing Authority and the City. Housing Authority Bond Counsel Bond counsel will prepare the necessary legal documentation for the bonds, including provisions regarding compliance with any applicable continuing disclosure requirements, provide and opinion regarding compliance with any applicable continuing disclosure requirements, provide an opinion regarding the validity of the bonds and their tax-exempt status (if applicable), and provide legal advice on relevant issues to best protect the interest of the Housing Authority and the City, including but not limited to the project monitoring requirement for federal tax, State Law and CDLAC purposes. Page 106 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • The Process  13 Bond Underwriter/Remarketing Agent/Private Placement Purchaser The Project Sponsor shall select the construction and permanent lender/bond purchaser and the method of selling bonds for a given transaction subject to the requirements set forth herein and the approval of the Housing Authority. Except as provided in these Policies the Housing Authority will not allow a bond transaction where the tax credit investor is also the bond purchaser or a related party thereto. The practice of allowing the Project Sponsor to propose the lender and bond structure is intended to create an incentive for qualified financial firms to actively work the Project Sponsor to structure and present feasible financing proposals that meet program requirements. In the event the Project Sponsor has not identified a proposed financing structure for a given transaction, the Housing Authority will select an underwriter, lender or private placement purchaser through a request for proposals process. Bond Trustee/Fiscal Agent The Housing Authority shall select the Bond Trustee or fiscal agent (a financial institution designated by the Housing Authority as the custodian of funds and official representative of bondholders). Housing Authority Consideration In consideration of an application to CDLAC for a Bond allocation and the issuance of Bonds by the Housing Authority, the City and the Housing Authority must complete certain actions. Inducement Resolution A Bond inducement resolution (“Inducement Resolution”) will be drafted and approved by the Housing Authority. This is a conditional expression through the public record of the Housing Authority’s “official intent” to issue Bonds for a Project in order to induce others to provide project financing and is required for tax-exempt financing under Treasury Regulation Section 1.150-2(e). Adoption of the inducement resolution establishes, through the public record, the date from which project costs incurred may be determined to be eligible for financing under the Program with proceeds of tax-exempt bonds. Additionally, the Inducement Resolution authorizes the filing of an application to CDLAC on behalf of the Project Sponsor. Adoption of the Inducement Resolution does not represent any commitment by the Housing Authority, City, or the Project Sponsor to proceed with the financing. The Housing Authority retains absolute and unfettered discretion over the issuance of Bonds through adoption of a resolution authorizing such issuance. Adoption of the inducement resolution does not authorize any subordinate financing by the Housing Authority of the City. Furthermore, the adoption of the inducement resolution shall not be construed to signify the Project complies with the planning, zoning, subdivision and building laws and ordinances of the City or suggests that the Housing Authority or the City will grant any such approval, consent or permit that may be required in connection with the development of a given project. Page 107 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • The Process  14 TEFRA Hearing and Approval In accordance with the Tax Equity and Fiscal Responsibility Act (TEFRA) of 1982 and Section 147(f) of the Internal Revenue Code of 1986, the issuance of Bonds must be approved by representatives of the governmental unit with jurisdiction over the area in which the project is located. The TEFRA Hearing will be conducted as a public hearing by the City Council on a date specified in a notice published at least 14 days in advance of the TEFRA hearing in a newspaper of general circulation within the City. The purpose of the public hearing is to provide an opportunity for interested persons to express their views on the proposed Bond issuance and on the nature and location of the Project. City’s Disclosure As a related entity of the City, the Housing Authority will adhere to the City’s Debt Issuance Policies (City Council Policy 220-05) as it may be amended from time to time, which applies to publicly offered bonds. The Housing Authority will present offering statements and disclosure documents for review and approval, as appropriate, by the City. Final Approval Staff Report If recommended for financing by CDLAC, the City’s Housing Department and Housing Authority’s Legal Counsel (including Bond Counsel) will proceed with a recommendation and all necessary documents for final approval of the Bond issuance by the Housing Authority. The report to the Housing Authority shall specify the approvals that are recommended, provide background on the project being financed, describe the financing structure, indicate any exceptions to the City’s investment policy, and describe the financing documents to be approved. The staff report should indicate if a separate City or Housing Authority financial assistance is being provided. However, the terms of that loan should be discussed in a separate staff report which, whenever possible, shall be submitted for the same agenda. The staff report may note that the Bond issue is contingent upon certain other approvals and may identify certain issues to be resolved at a later time. Substantially Final Documents The Housing Authority shall approve documents that are “substantially final” documents. Documents are in “substantially final” form if they identify the final security provisions and financing structure for the transaction. The Housing Authority’s Legal Counsel (including Bond Counsel) shall determine whether documentation is in substantially final form. CDLAC Applications for Bond Allocation Tax-exempt bonds (except 501(c)(3) bonds) require an allocation of Bond authority from CDLAC. To receive the allocation, the Housing Authority must submit an application to CDLAC on behalf of the Project Sponsor. The Inducement Resolution authorizes the submission of an application to CDLAC. The application must demonstrate readiness to proceed with Bond financing and compliance with applicable CDLAC regulations. Project Sponsors approved by CDLAC to receive an allocation of the Page 108 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • The Process  15 State ceiling on qualified tax-exempt bonds must be prepared to use those allocations to issue Bonds within 90 days. The Project Sponsor must pay all required CDLAC fees in advance of application submittal. Housing Authority to File The Housing Authority is the applicant to CDLAC for each Project to be financed with tax-exempt Bonds issued by the Housing Authority. Submittal of the application is at the discretion of the Housing Authority, not the Project Sponsor. The Housing Department will submit all applications to CDLAC on behalf of Project Sponsors. The Housing Authority will not file a Project Sponsor’s CDLAC application unless the Project Sponsor had provided the Housing Authority with the CDLAC Performance Deposit and the Housing Authority’s Issuance Deposit. Project Sponsor to Prepare Application Each Project Sponsor shall take responsibility for preparing the CDLAC application for its Project with input from Housing Authority representatives, including its financing team and bond counsel. The Project Sponsor shall pay to CDLAC the initial filing fee at the time of filing a CDLAC application. The Project Sponsor shall pay to CDLAC the second installment of the filing fee within 30 days of Bond issuance or issuance of the first mortgage credit certificate. Performance Deposit At the time of application to CDLAC, the Project Sponsor must deposit with the Housing Authority one half of one percent (0.05%) of the requested allocation (or such other amount as may be required by CDLAC) as a performance deposit. The deposit will be returned to the Project Sponsor according to CDLAC procedures; the deposit is subject to reversion to CDLAC should the financing not close accordingly. Project Sponsors are advised to read CDLAC regulations. Bond Sale and Closing Timing The Bond sale and closing may commence only after the Housing Authority authorizes the Bond issue, including the distribution of a Preliminary Official Statement, if applicable. Investment Agreements If authorized by the Housing Authority, the Project Sponsor, through its representative, which may include the underwriter or municipal advisor, may solicit investment agreement providers for the purpose of reinvesting Bond proceeds and revenues. The investment agreement providers must meet the Housing Authority’s requirements and the requirements in the Bond resolution and trust indenture for the Bonds. The Housing Authority’s Bond counsel and the municipal advisor shall review the investment agreement solicitation forms, the eligible providers, and the investment agreements. Page 109 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • The Process  16 Housing Authority Indemnity The Project Sponsor shall be required to provide to the Housing Authority, as a part of Bond documentation, an indemnity agreeing to defend and indemnify the Housing Authority, its members, officers, agents, employees, against any claim, judgment or settlement costs arising out of or involved in the financing, or in any of the documentation related thereto and the Project and volunteers to reimburse for all costs, expenses and attorney fees, in issuing the bonds and monitoring the Project. Page 110 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Types of Bonds  17 Types of Bonds The Housing Authority may issue either tax-exempt or taxable bonds (which includes notes or other debt instruments), or both. Taxable bonds would generally be issued only in combination with tax- exempt bonds. Tax-Exempt Private Activity Bonds For all tax-exempt financing, bond and related loan amounts will be subject to the procedures of CDLAC. Private Activity Bonds Private activity bonds require an allocation of bond authority from CDLAC. To get the allocation, the Housing Authority must submit an application to CDLAC on behalf of the Project Sponsor. Submittal of the application is at the discretion of the Housing Authority, not the Project Sponsor. The Project Sponsor must pay all required CDLAC fees in advance of application submittal. 501(C)(3) Private Activity Bonds The Housing Authority may issue bonds described in Section 145 of the federal tax code on behalf of qualified not-for-profit organizations (“501(c)(3) bonds”). The interest on these 501(c)(3) bonds are tax- exempt and the bonds do not require an allocation from CDLAC. However, 501(c)(3) bonds cannot be used with the Low-Income Housing Tax Credit Program (LIHTC). Taxable Bonds The interest on taxable bonds is not exempt from either federal or state taxation. These bonds are not subject to federal volume "cap" limitations and therefore do not require an allocation from CDLAC. Taxable bonds can be used in combination with LIHTC. Taxable bond issues must meet all applicable requirements of State law requirements governing the Housing Authority’s authority to issue bonds and these Policies and Procedures (including rating requirements) and any such added regulations which may, from time to time, be promulgated by the Housing Authority. Bond Rating and Credit Enhancement The Authority requires that bonds for which it acts as issuer have a minimum rating in the “A” category, or its equivalent, or better by Standard and Poor’s (equivalent Moody’s or other bona fide agency rating also acceptable), except as noted below, OR the bonds be privately placed with a “sophisticated investor” as defined by the Housing Authority. The Housing Authority reserves the right to impose these minimum requirements on bond issues for which the Housing Authority issues bonds, or the Housing Authority or City holds a TEFRA hearing. A preferred way of obtaining the required rating on the Bonds is through credit enhancement. Additional outside credit support may be provided in a number of forms, including a letter of credit Page 111 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Types of Bonds  18 (LOC), mortgage backed security (MBS), collateral pledge, bond insurance, etc., by rated, financial strong private institutions, such as government sponsored entities (including the Federal National Mortgage Association [Fannie Mae] or Federal Home Loan Mortgage Corporation [Freddie Mac]), other government insured mortgage programs, or other qualified credit enhancement providers. The form of credit enhancement must provide for a minimum rating in the “A” category by Standard and Poor’s (or the equivalent). The bond rating must be obtained by the closing of the bond issue. As the primary source of security for the repayment of the bonds, the credit enhancement provider will review and approve the borrower (credit, financial capability, experience, etc.) and the Project and its feasibility, including the size of the loan and the terms or repayment, using their own underwriting criteria. Fixed rate bonds can be issued without credit enhancement if the proposed financing structure results in the required minimum rating on the bonds. However, bonds issued without credit enhancement will only be sold to Qualified Institutional Buyer (“QIBs”) as defined under Rule 144A of the Securities Act of 1933 and in minimum $250,000 denominations, unless waived by the Housing Authority Director in his sole discretion. The Housing Authority Director or his designee may issue a waiver of the requirements of a QIB or minimum denominations upon written request by the Project Sponsor along with evidence or other information establishing justification. Upon consultation with its municipal advisor and legal counsel, the Housing Authority Director may approve, partially approve, or deny such waiver within ten (10) business days of such request by providing written notification to the Project Sponsor. Private Placement The bond rating requirement is waived if the entire bond issue is privately placed with QIBs or institutional “accredited investors,” (as defined in Sections 501(a)(1), (2), (3) or (7) of Regulation D promulgated under the Securities Act of 1933 or an entity in which all of the equity owners meet the requirements of at least one such subsection). It is the Housing Authority’s intent that bonds are placed with those investors who are experienced in investing in unrated municipal securities and can conduct their own analysis of real estate credit underwriting. Bonds must be sold in minimum $250,000 denominations, unless waived by the Housing Authority Director in his sole discretion. Unless approved by the Housing Authority, the bonds may not be held at any time by more than 15 investors. The Housing Authority reserves the right to require that a trustee or fiscal agent participate in privately placed bond transactions. All purchasers (including purchasers of participation interest in the bonds) would be required to sign an investor letter (“Investor Letter”) certifying the investor’s sophistication to understand the risk associated with the purchase of the debt instrument and restricting transfer of the bond issue to other Page 112 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Types of Bonds  19 accredited or qualified investors in denominations of $250,000 and greater. While the note remains unrated, its transferability will be restricted to QIBs or institutional accredited investors who sign an Investor Letter and who would represent to the Housing Authority that they are accredited investors or QIBs, are buying for investment and not for resale, and have made due investigation of the information they would deem material in connection with the purchase of the bonds. Page 113 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Use of Bonds  20 Use of Bonds Bonds issued may be used for both construction or rehabilitation and permanent financing. Bond proceeds may be used for costs of land acquisition (up to twenty-five percent (25%) of tax-exempt bond proceeds), construction rehabilitation, improvements, architectural and engineering services, construction interest, loan fees and other capital costs of the project incurred up to sixty days prior to the bond inducement date. Limitations on Use of Bonds Bond proceeds cannot be used to acquire property from a related party, as defined in CDLAC Regulations Section 5000, to the buyer. No more than 2 percent (2%) of the tax-exempt bond proceeds can be used to finance costs of issuance, such as the services of the financing team members, rating and printing of bonds, costs related to bond allocation, etc. Pursuant to federal tax-exempt requirements, if bonds are used for acquisition and rehabilitation, an amount equal to at least 15 percent (15%) of the portion of the acquisition costs of the building and related equipment financed with the proceeds of the bonds must be used for rehabilitation of the Project. The loans are assumable upon transfer of the Project with the approval of the credit enhancement provider or bond purchaser, and the Housing Authority Director or Assistant Director. Page 114 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Costs of Issuance  21 Costs of Issuance The Multifamily Revenue Bond program is self-supporting. Project Sponsors must pay all costs of issuance at bond closing, including, but not limited to, bond counsel, underwriter, trustee and municipal advisor fees, as well as rating agency fees. Any deposits will be credited toward the cost of issuance at closing. Only two percent (2%) of the proceeds of a tax-exempt bond issue may be used to pay costs of issuance. Costs over two percent (2%) must be paid from other sources secured by the Project Sponsor including, potentially, the proceeds of taxable bonds. Housing Authority Fees TEFRA Hearing Fee The City of Chula Vista shall charge a fee of $3,500 for the administrative costs associated with holding a TEFRA hearing relating to a Project. The fee shall be payable prior to the date that notice of the TEFRA hearing is published. No separate TEFRA hearing fee shall be charged if the City or Housing Authority is issuing the bonds for the Project. Issuance Fee The Housing Authority provides its services to a limited segment of the public, more specifically housing developers, to obtain unique services and substantial economic benefits available to them only under the State of California’s tax-exempt bond program to issue the debt, not the least of which may be financing at interest rates substantially lower than conventional financing interest rates, if such rates are available, and/or the ability to obtain financing without equity compensation to the lender. In consideration of its application to the State and issuance of tax-exempt bonds for the financing of such private projects that have a qualified public benefit and economic benefit to the Project Sponsor, the Housing Authority receives compensation for its services in preparing bond issuances by charging an up-front fee payable at bond closing. The Issuance Fee shall be in an amount equal to 20 basis points (0.20%) of the total original principal amount of the bonds (both tax-exempt and taxable) to be issued, with a minimum fee of $15,000. The Issuance Fee shall not exceed the amount otherwise allowed by the Internal Revenue Service (“IRS”) for tax-exempt bonds. An Issuance Deposit of $3,500 will be collected at the time of application submission. The Issuance Deposit is nonrefundable unless the Housing Authority or CDLAC declines the proposed financing. The Issuance Fee Deposit is applied to the Issuance Fee at closing. The Issuance Deposit shall be applied to the Issuance Fee at closing. Page 115 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Costs of Issuance  22 All remaining Issuance Fees will be collected at the closing of the bond issue except for issues requiring State of California volume cap. Issuance Fees for applications requiring State volume cap will be collected at the time of application submission to the State. No other fees will be collected unless and until the project financing closes, with the exception of projects requiring allocation of State volume cap. For projects requiring volume cap, the entire Issuance Fee is forfeited if the financing fails once the volume cap has been awarded by the State. If the application is withdrawn by the Project Sponsor, after submission to the State, but prior to the award of allocation, all fees except the Issuance Fee Deposit are refundable. Annual Administrative Fee The Housing Authority shall charge an annual fee (“Annual Administrative Fee”) to cover its ongoing costs associated with administration and oversight of outstanding bond issues and monitoring of regulatory restrictions (e.g. financial and site monitoring, and annual reporting) for bond issues required throughout the Qualified Project Period and until expiration of the CDLAC Compliance Period. The Annual Administrative Fee shall be in an amount equal to $13,000 for those Projects with 50 units or less, $17,000 for projects of 51 to 199 units and $21,000 for those projects of 200 units or more. Under no circumstances shall the Ongoing Issuer Fee exceed any limitation under Section 148 of the federal tax code. The first year Annual Administrative fee shall be paid at bond closing. Thereafter, the ongoing Annual Administrative will be due and payable, without the requirement for any invoice to be delivered to the Project Sponsor, in advance in equal semi-annual installments by January 15th and July 15th each year. The Annual Administrative fee will be paid throughout the CDLAC Compliance Period and as specified within the Regulatory Agreement, even if bonds are fully repaid prior to the expiration of the compliance period. The Housing Authority Annual Administrative fee shall be paid “above the line,” i.e., on a parity with bond debt service and trustee fees. This parity provides the greatest assurance that the Housing Authority’s fee will be paid, although it may reduce the amount that the Project Sponsor’s lender may be willing to underwrite. Additional monitoring fees may be charged for monitoring affordable housing units not governed by the Regulatory Agreement. Other Fees Additional fees may be applicable on a case-by-case basis for certain issues that arise that are outside the normal bond issuance process. Examples of such fees are, but not limited to, an IRS audit associated with bond issuance. The Housing Authority shall not be liable for any such fees and the sole responsibility of these other fees that may arise shall be the sole responsibility of the Project Sponsor. Page 116 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Costs of Issuance  23 For staff time incurred, including legal counsel, the Project Sponsor may be charged for such time according to the then current hourly full cost recovery rate charged by the Housing Authority or legal counsel. Table 1: Summary of Housing Authority Fees TEFRA Hearing $3,500 Issuance Fee 20 basis points (0.20%) of the total original principal amount of bonds issued Issuance Deposit $3,500 Annual Administrative Fee $13,000 for 50 units or less $17,000 for 51-199 units $21,000 for 200 units or more Other Fees Full cost recovery Page 117 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Refunding/Restructuring/Remarketing  24 Refunding/Restructuring/Remarketing On occasion, a Project Sponsor may ask the Housing Authority to refund its bonds to lower the interest rate, to remarket the bonds with a new credit enhancement, and/or to remarket the bonds as fixed rate bonds. The Project Sponsor will be responsible for all costs and fees related to the refunding. Optional Refunding Reasons to Refund Outstanding Bonds A Project Sponsor may ask the Housing Authority to refund its outstanding bonds for one of several reasons: ▪ Lower the interest rate on fixed rate bonds at the call date (through the issuance of fixed rate or variable rate refunding bonds); ▪ Substitute a new credit structure that was not expressly provided for in the existing documents; or ▪ Restructure the existing debt. Bond Counsel & Financing Team The Housing Authority shall reserve the right to select and approve the municipal advisor, underwriter (if applicable), and bond counsel to implement the refunding. Where possible and if desired by the Housing Authority, the financing team shall consist of the bond counsel, municipal advisor and, if applicable, underwriter that were retained for the original financing. The Project Sponsor will reimburse these costs at bond closing. Legal/Documentation New documents shall be prepared to meet the Housing Authority’s then-current legal, credit, financial, and procedural requirements and applicable then-current state or federal requirements. The Housing Authority shall follow the documentation process applicable to new bonds. Because the Housing Authority’s primary purpose in issuing multifamily housing bonds is to preserve and increase the supply of affordable housing in the Housing Authority, additional public benefit in the form of deeper income targeting, additional rent restrictions, including additional rent restricted units, the extension of the existing term of restrictions, or any combination therefore may be negotiated. The level of additional restrictions for public benefit will be determined in the context of the overall financial feasibility of each financing. If the Bond Regulatory Agreement is amended or terminated and superceded by a new Bond Regulatory Agreement in connection with a resyndication or restructuring, such amended or restated Regulatory Agreement shall be approved by CDLAC. Additionally, if federal or state affordability, income, and/or rent restrictions have changed between the time of the original financing and the refunding bonds, the more restrictive provisions shall apply. If new requirements are more restrictive than existing requirements, the new requirements shall be Page 118 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Refunding/Restructuring/Remarketing  25 applied in phases to new tenants over a period of time, not to exceed five (5) years, as determined by the Housing Department staff and it’s Attorney. The provisions of Section 52080(g) the California Health and Safety Code shall apply to projects financed under this Program, which requires that low-income units remain affordable, except in certain circumstances, until thirty (30) years after the commencement of the Qualified Project Period. Except in limited circumstances, the provisions of Sections 65863.10 and 65863.11 of the California Government Code shall apply to projects financed under this Program and Project Sponsors are advised to review the requirements of these Sections. Bond Maturity Subject to the approval of bond counsel, the final maturity of the refunding bonds may be later than the final maturity of the prior bonds so as to allow the Project Sponsor the longest possible period for repayment under federal law. A minimum of ten percent (10%) of the units in the Project will be required to be set aside for occupancy by households earning at or below fifty percent (50%) of AMI, with rents set at the corresponding affordability level for the term of the restructured bonds. Compliance The Housing Authority shall not proceed with a refunding if the Project is not in compliance with the current regulatory agreement, continuing disclosure reporting, or arbitrage rebate reporting and payment. Fees The Project Sponsor shall pay the following Housing Authority fees in connection with the refunding: ▪ Issuance Fee The Housing Authority shall charge an Issuance Fee in accordance with the Housing Authority’s current policy on Issuance Fees for new projects. ▪ Annual Monitoring Fee The Housing Authority shall continue to charge the same annual fee for monitoring the Project as for the original bonds. Such fee shall not be reduced even if the refunding bond size is lower. The Project Sponsor is also responsible for all other costs of the Housing Authority to cover the issuance of bonds to refund outstanding bonds (e.g. costs of municipal advisor, bond counsel and trustee, if applicable). Page 119 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Refunding/Restructuring/Remarketing  26 Cash Flow Savings Cash flow savings from refunding fixed rate bonds at a lower fixed interest rate or a variable rate shall be applied as follows: ▪ Projects with a Housing Authority or City Loan A portion of the projected cash flow savings, to be determined by the Housing Division, shall be used to accelerate the repayment of the Housing Authority loan, subject to restrictions in existing documents. ▪ Projects with No Housing Authority or City Loan The Housing Authority Housing Department shall require the Project Sponsor to provide affordability or other financial concessions to the Housing Authority as a condition for refunding. Such concessions may include increasing the percentage of affordable units and extending the term of affordability restrictions. Housing Authority Approval All refunding bonds and related legal documentation must be approved by the Housing Authority in accordance with the procedures set for the issuance of new bonds. Page 120 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Refunding/Restructuring/Remarketing  27 Default Refunding In the event of a default on the bonds or the underlying mortgage, a fixed rate bond issue may be refundable in advance of the call date without premium. The issue does not arise with variable rate bonds, as such bonds are callable at any time. Default refunding bonds are an area of potential sensitivity for the Housing Authority as it will not want a Project Sponsor to manufacture a default to take advantage of more favorable interest rates. Bond Counsel & Financing Team The Housing Authority shall reserve the right to select and approve the municipal advisor, underwriter (if applicable), and bond counsel to implement the refunding. Such selection shall be made in compliance with the City’s Charter and attendant Municipal Code requirements. Where possible and if desired by the Housing Authority, the financing team shall consist of the bond counsel, municipal advisor and, if applicable, underwriter that were retained for the original financing. The Project Sponsor will reimburse these costs at bond closing. Confirming the Default To confirm a default, the Housing Authority and CDLAC must receive a notice from an independent party, such as the bond trustee. If applicable, notice of cash flow insufficiency is then filed as part of the Continuing Disclosure Certificate. In addition, the Housing Authority shall retain, at the expense of the Project Sponsor, an independent feasibility consultant to review the default. The Housing Authority will proceed with the transaction only if a review by staff and the independent consultant indicates that: ❑ Net cash flow from the Project is currently insufficient to pay debt service on the outstanding bonds and is unlikely to do so within a reasonable period; ❑ The Project is being operated in accordance with reasonable real estate management practices and the net operating income has not been artificially reduced by failing to rent units actively, inflating operating expenses, or other reasons within the control of the Project Sponsor; and ❑ The Project Sponsor has provided audited operating statements, Continuing Disclosure filings (if applicable), and arbitrage rebate reports for all years, has cooperated in providing requested information, and has used operating income and other resources to pay debt service. Additional Requirements ❑ Indemnification The Housing Authority shall be indemnified as to any costs incurred as a result of the refunding, under terms approved by the Housing Authority’s Legal Counsel. Such indemnification shall come from a party or parties with adequate net worth or other financial capacity and whose assets are not limited to ownership of the Project. Page 121 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Refunding/Restructuring/Remarketing  28 ❑ Future Debt Coverage The analysis of the feasibility consultant shall show that, upon the refunding, the Project’s current net operating income will be at least sufficient to pay the revised debt service plus a reasonable coverage ratio (or adequate non-bond proceeds will be available to cover such deficiencies). In other words, the Housing Authority shall not proceed with the refunding if it will not cure the cash flow problem. ❑ Bond Counsel Review Bond counsel shall have determined that the original bond and disclosure documents provided adequate disclosure of such a potential redemption and that the provisions of the prior documents have been satisfied. ❑ Compliance Fees The Housing Authority shall not proceed with a refunding if the Project is not in compliance with the current regulatory agreement, continuing disclosure reporting, or arbitrage rebate reporting and payment. The fees and expenses of the feasibility consultant, municipal advisor and bond counsel shall not be contingent on their findings or completion of a refunding. The Housing Authority shall require that the Project Sponsor deposit the estimated fees and expenses with the Housing Authority prior to the commencement of any analysis. Affordability Restrictions The affordability requirements for a default refunding shall be the same as those listed under “Legal/Documentation” for an optional refunding. Housing Authority Approval The Development Services Department’s Housing Division, in conjunction with the Finance Department and Housing Authority’s Legal Counsel, shall obtain final Housing Authority approval authorizing the bond issue and execution of the relevant documentation. A recommendation of default refunding by Housing Authority staff shall only be given after an initial analysis of feasibility is performed, a default is confirmed, and it is determined that a refunding will cure the cash flow problem. Housing Authority Fees The Housing Authority shall charge the same Issuance Fee and annual monitoring fee that it otherwise would in conjunction with a new bond issue. Page 122 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Refunding/Restructuring/Remarketing  29 REMARKETING A Project Sponsor may ask the Housing Authority to remarket outstanding bonds under one of three basic scenarios: (1) converting variable rate bonds to fixed rate bonds; (2) a mandatory tender of bonds; or (3) substituting a new credit enhancement for the bonds in accordance with existing documentation. Bond Counsel & Financing Team The Housing Authority shall reserve the right to select and approve the municipal advisor, underwriter (if applicable), and bond counsel to implement the refunding. Where possible and if desired by the Housing Authority, the financing team shall consist of the bond counsel, municipal advisor and, if applicable, underwriter that were retained for the original financing. The Project Sponsor will reimburse these costs at bond closing. Legal/Documentation A remarketing of fixed rate bonds will not require new legal documentation. However, the Housing Authority’s Legal Counsel, in conjunction with bond counsel, may require a new disclosure document. A remarketing of bonds with a new credit enhancement may require amended documentation, as well as a new disclosure document, as determined by the Housing Authority’s Legal Counsel and bond counsel. Fees A remarketing will not result in the payment of additional or revised Housing Authority issuance or annual fees. However, the Housing Authority shall recover its actual remarketing administrative costs incurred (estimated to range from $10,000 to $25,000) from the Project Sponsor. Housing Authority Approval All remarketed bonds and any related documentation shall be approved by the Housing Authority prior to any remarketing. Page 123 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  30 Post-Issuance Compliance Procedures As an issuer of Bonds awarded allocations from CDLAC, the Housing Authority must attest to the adherence with CDLAC requirements for each development that is still in its monitoring period to ensure that Bond funds are spent appropriately and to ensure that rents assessed to tenants meet the terms of the Bond Regulatory Agreement. The Housing Authority performs Bond compliance monitoring duties for CDLAC as defined under Section 5220 of the CDLAC regulations. The Housing Authority shall maintain documents related to its issuance of the Bonds, loan, and ongoing monitoring of the Project in compliance with the City’s Document Retention Policy. Use of Bond Proceeds and Bond-Financed or Refinanced Assets The Project Sponsor shall be responsible for: ▪ Monitoring the use of bonds proceeds and the use of bond-financed or refinanced assets (e.g. facilities, furnishings or equipment) throughout the term of the bonds to ensure compliance with covenants and restrictions set forth in the documents relating to the bonds; ▪ Maintaining records identifying the assets or portion of assets that are financed or refinanced with proceeds of each issue of bonds, including a final allocation of bond proceeds; ▪ Consulting with bond counsel and other legal counsel and advisors in the review of any contracts or arrangements involving use of bond-financed or refinanced assets to ensure compliance with all covenants and restrictions set forth in the documents related to the bonds; ▪ Maintaining records for any contracts or arrangements involving the use of bond-financed or refinanced assets; ▪ Conferring at least annually with personnel responsible for bond-financed or refinanced assets; and, ▪ The extent that the Project Sponsor discovers than any applicable tax restrictions regarding use of bond proceeds and bond-financed or refinanced assets will or may be violated, consult promptly with Bond Counsel and other legal counsel and advisors to determine a course of action to remediate all nonqualified bonds, if such counsel advises that a remedial action is necessary. Record Keeping The Project Sponsor shall be responsible for maintaining the following documents for the term of each issue of bonds (including refunding bonds, if any), and at least three additional years: ▪ A copy of the bond closing transcript(s) and other relevant documentation delivered to the Project Sponsor or in connection with the closing of the bond issue; Page 124 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  31 ▪ A copy of all material documents relating to capital expenditures financed or refinanced by bond proceeds, including (without limitation) construction contracts, purchase orders, invoices, trustee requisitions and payment records, draw request for bond proceeds and evidence as to the amount and date of each expenditure of bond proceeds, as well as documents relating to costs paid or reimbursed with bond proceeds and records identifying the assets or portion of assets that are financed or refinanced with bond proceeds, including a final allocation of bond proceeds; ▪ A copy of all contracts and arrangement involving the use of bond-financed or refinanced assets; and ▪ With respect to any investment of bond proceeds or collateral securing the repayment of the bonds, a copy of all records of investments, investment agreements, arbitrage reports and underlying document, including trustee or fiscal agent statements, in conn ection with any investment agreements, and copies of all bidding document, if any. For housing bond financings subject to the requirement of Section 142 (d) of the Code, as amended, the Project Sponsor shall be responsible for maintaining, until the end of the qualified project period within the meaning of Section 142 (d)(2)(A) of the Code, and at least three (3) additional years a copy of all records evidencing compliance with the requirements of Section 142 (d) of the Code, including tenant income verifications, leases and tenant records. Such records shall be made available to the Housing Authority at its reasonable request. Records for the current year and preceding two (2) years shall be available at the Project site at such time the Housing Authority provides notification of a monitoring of the Project at the site. The Project Sponsor, in the document relating to the bonds and/or other documents finalized at or before the issuance of the bonds, shall agree to the forgoing records retention requirements and procedures. Annual Certification of Public Benefits and On-going Compliance As required by CDLAC regulations, all projects that receive a CDLAC bond allocation and are within an existing regulatory period and/or compliance period, shall be monitored by the Housing Authority for compliance with the terms and conditions of the CLDAC resolution. The Housing Authority may choose to hire an outside compliance monitoring firm to assist with such requirements. The Housing Authority utilizes FOCUS® a housing compliance monitoring and reporting software for submittal of Project rent rolls. It is acknowledged that the Housing Authority is required to collect, review, and submit to CDLAC the Certification of Compliance I, Certification of Compliance II and CDLAC Completion Certificate for each issuance bonds, when applicable. Each year, by March 1st, the Housing Authority submits such Page 125 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  32 certifications to CDLAC in such format as required by CDLAC, and must certify as the issuer that all of its Bond-funded developments are complying with the features originally identified in application to CDLAC and contained in Attachment A to the CDLAC resolution. Annually, on or before February 1st of each year until the expiration of the later of the qualified project period or compliance period under the applicable CDLAC Resolution and Regulatory Agreement, Project Sponsor and/or their representatives, are required to submit to the Housing Authority the following information and forms as follows: ❑ Certification of Delivery of Public Benefits and Continuing Program Compliance (attach validating back-up information on services contracts, services types, and services frequency) ❑ Annual QRRP Certification of Compliance I or II form, as applicable (Must be submitted and signed on project sponsor letterhead) ❑ IRS Form 8703 Annual Certification of a Residential Rental Project ❑ If property did not already submit its rent roll for this previous year via FOCUS®, the City’s/Housing Authority’s housing compliance monitoring and reporting software, then submit rent roll as of December 30th. Else, resubmission of September 30th rent rolls is not required. ❑ If CDLAC adopted a new Exhibit A to its CDLAC resolution in the most recent year, the most recent Exhibit A ❑ If the project ownership has changed since the Bonds were first issued, provide: o Completed Legal Status Questionnaire (attached to Certification of Delivery of Public Benefits form) o W-9 Attachment o Partnership organizational chart with principals and officers of each entity of the new partnership identified (see sample forms attached). Project Sponsors and/or representatives are required to maintain the above records and any other records required by the Housing Authority or CDLAC for the term prescribed in the Bond, Regulatory Agreement, or any other legal requirement (including applicable period which may be subject to audit) whichever is the longest. All required forms for submittal to the Housing Authority for monitoring purposes can be found on the City of Chula Vista Rental Housing Compliance website at Page 126 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  33 http://www.chulavistaca.gov/departments/development-services/housing/building- affordable-housing/rental-housing-compliance. The Housing Authority shall review the Project Sponsor’s Certificate of Compliance, all other documents submitted and may request additional supporting documents that evidence compliance as necessary in the sole reasonable discretion of the Housing Authority. IRS Form 8703 The Project Sponsor is required to submit IRS Form 8703 annually to the IRS on or before each March 31st as long as the bonds are outstanding. Form 8703 provides annual information to the IRS to help them determine whether a project continues to be a qualified residential rental project under Section 142 (d) of the Code, as amended. Monitoring For projects receiving an allocation of bond authority from CDLAC after December 31, 2016, CDLAC requires that a review of twenty percent (20%) of all management files associated with federally bond- restricted units either on-site or electronically be performed upon project completion and a minimum of every three (3) years thereafter. Non-Compliance For projects which are not satisfying the terms and conditions stated in the CDLAC Resolution, the Housing Authority will provide written notification of such non-compliance to the Project Sponsor and provide two (2) weeks for Project Sponsors to provide any further information or documentation that may demonstrate continuing compliance. Should the Housing Authority determine such non- compliance continues to exist, the Housing Authority will work with its legal counsel and CDLAC staff to institute remedial action, as necessary, including an action for specific performance or other available remedy, as may be specified within the Regulatory Agreement, Loan Agreement or other loan related documents. The Housing Authority may disqualify a bond application from any Project Sponsor or member of the development partnership who is not in compliance with the Housing Authority’s or CDLAC’s post issuance compliance requirements, guidelines, policies as determined by the Housing Authority and/or by CDLAC. Transfer of Ownership The Housing Authority reserves the right to approve any voluntary change in ownership of a bond- financed project (i) to another owner; (ii) that results in a transfer of fifty percent (50%) or more of the total equity interests in a project owner or (iii) that results in a transfer of any general partner or managing member interest in the project owner. Such approval of transfer of ownership shall be at the discretion of the Housing Authority, subject to the additional notification and approval of CDLAC and any additional requirements set for in the applicable tax certificate or Regulatory Agreement. The Housing Authority shall review management practices of the Page 127 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  34 proposed transferee’s current and previously owned multifamily housing rental properties. Any proposed transferee (including individuals with an ownership) whose currently owned multifamily housing rental properties have been found by the Housing Authority to have deficiencies that have not been resolved within the time frame prescribed by the City, Housing Authority, or other local government authorities, may not assume ownership of or an ownership interest in an any bond- financed project. The Housing Authority may initiate additional inspections to verify findings. Carryforward Election With respect to each allocation of tax-exempt private activity bond issue authority to the Housing Authority in a given calendar year for which less than all of the allocation volume cap was used, the Housing Authority staff shall contact CDLAC requesting confirmation of the amount, if any, of carryforward election the Housing Authority shall make under Section 146(f) of the Code and the Housing Authority will timely file a Form 8328 with the IRS. Arbitrage Rebate Compliance The Project Sponsor shall comply with all applicable federal tax laws set forth in the tax or arbitrage certificate and bond documents, including arbitrage rebate compliance. Upon request, the Project Sponsor shall provide the Housing Authority documentation that verifies the Project Sponsor’s compliance with federal tax laws set forth in the tax or arbitrage certificate and bond documents, including rebate compliance reports. Other Required Disclosures The Project Sponsor shall be solely responsible of any and all disclosures under any applicable Securities and Exchange Commission and any Municipal Securities Rulemaking Board (MSRB) rules, requirements and regulations, including but not limited to fixed rate bond issuance with Fannie Mae and/or Freddie Mac involvement. Page 128 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  35 SAMPLE FORMS TO FOLLOW Page 129 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  36 Page 130 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  37 Page 131 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  38 Page 132 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  39 Page 133 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  40 Page 134 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  41 Page 135 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  42 Page 136 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  43 Page 137 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  44 Page 138 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  45 Page 139 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  46 Page 140 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • Post-Issuance Compliance Procedures  47 Page 141 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • INDEX  48 INDEX Bond Issuance Application and supporting documents requirements ................................................................................ 9 Fee Structure for issuance and ongoing annual administration................................................................ 21 Requirements for inducement & TEFRA Resolutions and TEFRA public hearings .............................. 13 Parameters for issuer liability for bond issuance or repayment of bonds ................................................. 1 Indemnification requirements with respect to the financing and the project ......................................... 15 Procedures and requirements for private placement purchases and public sales of bonds ................. 17 Underwriter selection criteria and procedures............................................................................................ 13 Credit enhancement requirements ................................................................................................................ 17 Bond Counsel selection criteria and procedures ......................................................................................... 12 Loan to value restrictions/limits ...................................................................................................................... 8 Interest rate restrictions/limits ......................................................................................................................... 8 Requirements for offering materials or disclosure documents ................................................................. 14 Maximum loan amount .................................................................................................................................... 8 Minimum bond ratings ................................................................................................................................... 16 Minimum/maximum bond denominations ................................................................................................. 17 Limitations on uses of bond proceeds .......................................................................................................... 20 Rent and income limitations (if applicable) ................................................................................................... 4 Affordability requirements .............................................................................................................................. 5 Public benefit requirements ............................................................................................................................. 4 Debt to income requirements ........................................................................................................................... 8 Local review and approval requirements .................................................................................................... 11 Review procedures and requirements for financing structure, financing documents and tax-exempt status ............................................................................................................................................. 11 Developer and ownership partnership requirements and limitations ....................................................... 9 Property management requirements and limitations ............................................................................... n/a Management plan requirements ................................................................................................................. n/a Page 142 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Housing Authority • • • INDEX  49 Procedure for determining developer fee and developer fee limits ........................................................... 8 ID any third-party contractors and describe rights, obligations and limitations of third- party contractors .............................................................................................................................................. 12 Exceptions/waivers of policy requirements and procedures for requesting a waiver ..................... 11, 18 Post Issuance Compliance Identification of third-party contractors engaged in compliance verification, reporting and/or auditing and describe rights, obligations and limitations of third-party contractors ............................ 30 Identification of parties responsible for compliance verification and reporting..................................... 29 Commencement of Qualified Project Period and reporting requirements and procedures ................................................................................................................................................ 30 Compliance forms for reporting .................................................................................................................... 34 Compliance verification, reporting and auditing procedures: .................................................................. 30 Affordability (i.e.: # of units at 50% AMI and 60% AMI) (QRRP only) ...................................................... Income limits (QRRP only) ............................................................................................................................ Utility allowances (QRRP only) ..................................................................................................................... Service amenities and other public benefits required by CDLAC resolution.................................................. Arbitrage rebate............................................................................................................................................... Frequency of compliance verification, reporting and audits ..................................................................... 30 Issuer document retention procedures and time limits ............................................................................. 29 Site-based document retention procedures and time limits ...................................................................... 30 Procedures for reporting compliance/non-compliance to regulatory agencies and other external entities (i.e.: CDLAC, TCAC, etc.) .................................................................................................. 30 Criteria and procedures for seeking revised resolutions and/or regulatory agreements......................... Non-compliance correction procedures and penalties ............................................................................... 32 Page 143 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda v . 0 0 5 P a g e | 1 April 21, 2026 ITEM TITLE Grant Acceptance: Accept Grant Funding for the Hazardous Fuels Reduction Program from the California Governor’s Office of Service and Community Engagement/California Volunteers Report Number: 26-0113 Location: No specific geographic location Department: Fire G.C. § 84308 Regulations Apply: No Environmental Notice: The Project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15301 Class 1 (Existing Facilities) and Section 15304 Class 4 (Minor Alterations to Land). Recommended Action Adopt a resolution accepting grant funds in the amount of $1,499,974.31 from the California Governor’s Office of Service and Community Engagement/California Volunteers #CaliforniansForAll Youth Service Corps Grant to support the Fuels Crew as part of the Hazardous Fuels Reduction Program. SUMMARY The Chula Vista Fire Department applied for an additional cycle of funding from the Governor’s Office of Service and Community Engagement/California Volunteers #CaliforniansForAll Youth Service Corps Grant to continue a workforce development program and support wildfire mitigation efforts. Accepting this grant award would provide $1,499,974.31 over 12 months to support the Fuels Crew as part of the City’s Hazardous Fuels Reduction Program, resulting in reduced wildfire risk to the community and job opportunities and job readiness training for youth ages 16 to 30. ENVIRONMENTAL REVIEW The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the project qualifies for a Categorical Exemption pursuant to State CEQA Guidelines Section 15301 Class 1 (Existing Facilities) and Section 15304 Class 4 (Minor Alterations to Land), because the proposed project would not result in a significant effect on the environment, create a cumulative impact, damage a scenic highway, or cause a substantial adverse change in the significance of a historical resource. Thus, no further environmental review is required. Page 144 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 2 BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not Applicable. DISCUSSION The City of Chula Vista (“City”) has prioritized reducing wildfire risk by addressing hazardous vegetation in the wildland-urban interface (WUI), fire hazard severity zones, evacuation corridors, and mutual threat zones throughout the City. These areas contain dense grass, brush, and chaparral that contribute to rapid wildfire spread and threaten homes, critical infrastructure, and evacuation routes when left untreated. Through the Fire Department’s Hazardous Fuels Reduction Program, the City is taking proactive steps to reduce wildfire risk while also creating meaningful workforce development opportunities for youth in the South Bay region. The City owns and manages more than 3,200 acres of WUI consisting primarily of grass, brush, and chaparral located within canyons and open space areas throughout the community and in mutual threat zones across South San Diego County. Historically, many of these areas did not receive consistent vegetation management and, in some cases, have gone decades without exposure to natural fire cycles or fuels treatment. Cycles of severe storms followed by prolonged drought across Southern California have further contributed to dense, highly contiguous fuel loads, increasing wildfire risk. Recognizing these conditions, the Fire Department established the Hazardous Fuels Reduction Program (the “Program”) in 2023 to begin systematic fuels reduction in priority areas, including open space within fire hazard severity zones and along critical evacuation routes. To support the Program, the Fire Department established a specialized vegetation fuel management crew (the “Fuels Crew”) to reduce wildfire risk to the community. Since its inception, the Fuels Crew has made measurable progress in reducing wildfire risk throughout the community. The Fuels Crew has completed fuels reduction work across multiple canyon and open space areas, improved defensible space along key evacuation routes, and assisted with fire prevention and community outreach activities. These efforts have helped reduce hazardous fuel loads, improve firefighter access in high-risk areas, and enhance overall wildfire preparedness in neighborhoods located adjacent to open space. Through the California Volunteers Youth Service Corps grant opportunity, the Fire Department has expanded the Program Fuels Crew to add additional members and increase the amount of vegetation treated. In addition to wildfire mitigation, the Program Fuels Crew also provides a pathway to careers in fire and emergency response services. Participants on the Fuels Crew gain valuable work experience while receiving training and certification opportunities, including Emergency Medical Technician (EMT) training and coursework required for Wildland Firefighter Type 1 and Type 2 certifications. Fuels Crew members also receive mentorship from Fire Department suppression personnel to support their continued education, certification, and career advancement. Several current and former Fuels Crew members have already taken steps toward careers in emergency services as a result of their participation. The Program Fuels Crew prioritizes recruiting participants ages 16 to 30 from underserved South Bay communities, including at-risk youth, individuals facing economic hardship, the unemployed or underemployed, justice-involved individuals, and those experiencing housing insecurity. By investing in local youth and providing meaningful career pathways, the City is addressing wildfire risk while strengthening the regional workforce. Page 145 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 3 The continued success and expansion of this Program and the Fuels Crew reflect the City’s strong commitment to public safety, wildfire preparedness, and programs that create long-term benefits for the Chula Vista community. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and, consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act. (Cal. Gov. Code § 87100, et seq.) Staff is not independently aware and has not been informed by any City Council member of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT There is no current year fiscal impact. The grant period begins next fiscal year. ONGOING FISCAL IMPACT Approval of the resolution will accept $1,499,974.31 in grant funding from California Volunteers. This grant does not require a City cost share and will have no fiscal impact to the General Fund. This award represents a second allocation of funding under the California Volunteers program initially awarded to the Fire Department in July 2025. The current grant funds are budgeted through December 3 1, 2026. The additional funding will become available once the existing grant funds are fully expended and is anticipated to extend program operations for approximately twelve months, through December 31, 2027. Funding for this project will be incorporated as part of the annual budget development process in fiscal year 2026-27. All program expenditures will be limited to the grant award amount unless additional funding sources are identified, secured, and appropriated. ATTACHMENTS 1. City of Chula Vista YSC Award Letter 2. Agreement Staff Contact: Chris Manroe, Fire Chief Marlon King, Emergency Services Manager Page 146 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda #CaliforniansForAll CaliforniaVolunteers.ca.gov Chris Manroe City of Chula Vista 3/19/2026 Dear Chief Manroe. Thank you for your application for the funding opportunity titled RFA CV25-YSC04 — Youth Service Corps Competitive Program. This letter is to inform you that the City of Chula Vista has been granted an award of $1,499,974.31. Do not hesitate to contact me if you have any questions. Sincerely, Josh Lord Youth Service Corps Director 1400 10th St Sacramento, CA 95814 OFFICE 916-323-7646 Page 147 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2. The term of this Agreement is: Page 148 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 149 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 1 | P a g e California Volunteers 2025-2026 Youth Service Corps Competitive Program Solicitation Number CV25-YSC04 Chula Vista Fire Department Hazardous Fuels Reduction Crew Program Contact Information Chris Manroe Chula Vista Fire Department Fire Chief CManroe@chulavistaca.gov Phone: 619.992.5648 Applicant: City of Chula Vista, California Section 1: Program Goal (10 points) What does your municipality hope to gain from this program? Which strategic goals can this program help your municipality meet? The City of Chula Vista has two goals for this program. First, to mitigate hazardous fuels in wildland-urban interface (WUI) areas, in high and very high severity zones, along evacuation routes, and in mutual threat zones throughout the city. The second is to provide youth from the south bay of San Diego County a career path opportunity to work on the Chula Vista Fire Department’s (CVFD) Hazardous Fuels Reduction Crew (Fuels Crew). The City of Chula Vista owns and manages over 3,200 acres of WUI, consisting of grass, brush, and chaparral within canyons and open spaces spread throughout the city and mutual threat zones. Until recently, there has not been a consistent hazardous fuels reduction program, and many of these canyons and open spaces have gone decades without exposure to natural fire cycles. Southern California has also experienced cycles of severe rainstorms and extreme drought, contributing to dense, highly contiguous fuel loads. These accumulated fire loads are a significant and urgent wildfire threat to the city. In response to this threat, in 2023, CVFD initiated a Fuels Crew Program to begin hazardous fuels reduction on all 3,200 WUI acres, open space areas located in high or very high fire severity threat zones, and city evacuation routes. Funding from a local non-profit, coupled with a match from the City of Chula Vista, enabled CVFD to purchase the equipment needed to begin the program. Our current Fuels Crew is now staffed with 25 members. With this grant from California Volunteers, we aim to expand our Fuels Crew by funding 32 Fuels Crew members (12 full-time and 20 part-time) and increasing our hazardous fuels reduction capacity. One of the tenets of our Fuels Crew Program is to “provide a career pathway into the fire and emergency response services. Crews like this have a proven track record for providing a gateway to career positions throughout the state.” This grant will provide 32 youth fellows the opportunity to have full and part-time, meaningful and productive work as a City of Chula Vista Fire Department employee, while also providing them with the opportunity to receive training, licensure, and certification as an emergency medical technician (EMT), Wildland Firefighter Type 1, Wildland Firefighter Type 2, California Commercial Driver, and OSHA-compliant Skid Steer/Forklift Operator certifications. The additional hands-on practical experience in hazardous fuels reduction, hand and power tool use, heavy equipment use, public education, fire prevention, disaster services, and emergency medical care further enhances the youth fellow’s Exhibit A - Scope of Work City of Chula Vista JP2002-Y2526 Page 150 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2 | P a g e value as a career firefighter, EMT, and/or paramedic. Additionally, crew members receive mentorship and guidance from full-time CVFD suppression members in pursuing additional education, certification, and career goals, preparing them for successful careers in the fire service. The City’s General Plan and Strategic Plans have wildfire risk reduction, emergency preparedness, and hazard mitigation goals to create a resilient and well-prepared community. Minimizing the threat and impact of wildfires through hazardous fuels reduction serves to accomplish these goals. While addressing the City’s strategic plan through hazardous fuel reduction, CVFD also has an opportunity to provide interested youth with work in public service and the first steps toward a career in emergency services. The applicants targeted for this program will be from underserved populations, including at-risk youth, individuals facing economic hardship, unemployed, never employed, justice-involved, housing insecure, and between the ages of 16-30. We have a proven track record in this type of recruitment, as these priority areas and characteristics describe many of our current Fuels Crew members. By investing in our youth and providing them with the skills and opportunities to succeed, we not only strengthen our workforce but also build a safer, more resilient City. In 2025 we received funding from the #CaliforniansForAll Youth Service Corps, and over the last 6 months we have filled 25 of the targeted 30 positions providing paid, real-world experience in hazardous fuels reduction that directly enhances community safety and reduced wildfire risk to our community, aligning with the grant’s climate and public service objectives. Additionally, 20 members have successfully completed their Wildland Type 1 certification, four members are enrolled in the upcoming EMT course scheduled January 2026, and three members have secured full-time positions, two with CVFD as Firefighter/EMTs, and one as an emergency room tech with a local hospital. Section 2: Program Design (40 points) Which focus area(s) will youth be working on (food insecurity, climate change, education, public service)? Our Fuels Crew members are actively engaged in reducing the impacts of climate change, increasing community education/awareness, and embodying the principles of public service through active hazardous fuels reduction and public education events. Climate Change Members of the Fuels Crew conduct hazardous fuels reduction, invasive species removal, and native habitat restoration efforts directly tied to addressing the impacts of climate change. In Chula Vista, decades of severe rain and windstorms followed by prolonged drought have led to the accumulation of dangerously high fuel loads. By removing dead and dying vegetation, excess ground litter and ladder fuels, and invasive non-native plants, and by reseeding with native species, the crew helps create a more climate-resilient landscape. These actions reduce wildfire intensity, improve fire manageability, and allow native vegetation to recover more quickly after a fire. By removing hazardous fuels and invasive plants, and reseeding with native vegetation, we reduce the risk of catastrophic wildfires, thereby reducing large-scale smoke and air pollution, minimizing soil erosion and the risk of mudslides and flooding after a fire, encouraging healthy landscape regeneration, and preserving our natural resources and wildlife habitats. Education Fuels Crew members participate in public education throughout their workday, both formally and informally. The areas targeted for hazardous fuels reduction in Chula Vista are in WUI zones Page 151 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 3 | P a g e immediately adjacent to homes and commercial areas throughout the city. While the Fuels Crew work, homeowners and community members often approach them with questions and a general desire to see what the crew is doing. This provides crew members an informal opportunity to educate the public on hazardous fuels reduction, defensible space, structure hardening, evacuation planning, and general fire prevention. The Chula Vista Fire Safe Council, in partnership with CVFD, is actively involved in creating Firewise® communities throughout Chula Vista. Public forums and events are attended by CVFD members, including Fuels Crew members, who are there to educate and empower the public to adopt Firewise® practices, enhancing community resilience and preparedness. CVFD holds multiple community outreach events throughout the year. Fuels Crew members participate in these events, providing them with additional opportunities to educate and interact with the community. Public Service Hazardous fuels reduction is a critical public service and the primary function of the Fuels Crew. Hazardous fuels reduction protects communities from wildfires, improves public safety, reduces the financial burden on taxpayers, and provides employment opportunities. Hazardous fuels reduction in the WUI improves public safety by reducing wildfire severity, ember production, and structure impingement while providing firefighting crews a safe place for suppression efforts. This, in turn, protects the community from the devastation of lives lost, homes destroyed, environmental loss, smoke exposure, and community disruption. Importantly, hazardous fuels reduction in the WUI landscape provides residents more time and space for safe evacuations, reducing the chance of a wildfire trapping someone in their home or car. Reducing fire severity decreases the financial burden on taxpayers and homeowners. Severe fires require extensive firefighting resources, including personnel, aircraft, and equipment. Reducing severity leads to smaller, less resource-intensive fire responses, cutting costs for city and state fire departments. High severity fires destroy homes, businesses and infrastructure, creating a financial burden on homeowners, business owners, and cities. The decreased impact of fires on homes directly reduces the financial and emotional impacts on individual homeowners who lose their homes to fire. Reduced wildfire risk through hazardous fuels reduction can also help homeowners maintain their homeowner’s insurance and may even lower insurance costs. Finally, CVFD’s Fuels Crew Program has provided employment opportunities in the city and a route to a first responder career for interested and motivated community members. Summary Hazardous fuels reduction is undeniably challenging work. However, by integrating our Fuels Crew into CVFD, we offer more than just a job; we provide an invaluable opportunity for personal and professional growth. Through this program, participants not only engage in the demanding task of hazardous fuels reduction but also acquire essential skills, discipline, and a sense of purpose. Moreover, serving in the Fuels Crew opens pathways to diverse career opportunities within the emergency response realm, including roles as firefighters, EMTs, and paramedics. By nurturing talent and fostering a culture of continuous learning, we empower individuals to not only safeguard our community's well-being but also immerse themselves in a fulfilling and impactful career. CVFD’s Fuels Crew Program serves as a testament to our commitment to inclusivity and social equity, providing valuable employment opportunities and career pathways for underserved youth in our community, regardless of background or education. Our goal is to provide Page 152 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 4 | P a g e meaningful employment opportunities and gateways to rewarding careers, all while engaging in climate protection, community education, and public service that provides a significant benefit to the quality of life for Chula Vista residents. Do you plan on subgranting with CBO’s? Since this grant request is to expand our current Fuels Crew operation with existing infrastructure and procedures, there will not be a need to subgrant with a CBO. However, we have an existing relationship with the non-profit South Bay Community Services (SBCS) who has decades of experience with support services to underserved communities in San Diego County. The CVFD Fuels Crew Program currently hires SBCS interns through their workforce development program derived from young adults who are in or transitioning from foster care, justice-involved, and/or housing-insecure. We plan on continuing our current relationship with SBCS to assist with recruiting youth fellows who meet the priority criteria of this grant opportunity. What activities will youth be working on? All 32 youth fellows will participate in hazardous fuel removal, physical training, job-specific training, public education, and coursework. Crew members attend all training and work together as a group, fostering teamwork and camaraderie. Full-time participation will be 40 hours per week, and part-time participants will commit to 20 hours per week. Those youth fellows who are not already EMTs will participate in the EMT course (a total of 228 hours), while ‘disaster service work’ will apply to all fellows should the need arise. For the first three weeks, youth fellows will undergo onboarding consisting of job-specific training, coursework, and physical training. After this period, fellows will begin hazardous fuels activities (tasks assigned based upon successful completion of job-specific training) and public education, while continuing with coursework, job-specific training, and physical training. Activities 1. Job-Specific Training a. Proper use and maintenance of hand and power tool use for hazardous fuel removal. b. Certification on chainsaw use for hazardous fuel removal and falling hazard trees. c. Proper use of heavy equipment for processing/mulching hazardous fuels. d. Certification on skid steer and remote-controlled heavy equipment for moving and processing/mulching vegetation. e. Emergency vehicle operation and commercial driver license training. f. Mentoring for successfully passing the CAL-JAC Firefighter Candidate Testing Center (FCTC) exam. 2. Coursework and Continuing Education a. All youth fellows will complete the necessary coursework to meet the minimum qualifications for the CVFD Hand Crew. b. EMT coursework (228 hours) will be offered to those participants who are not already certified. c. Complete a variety of fire and hazardous fuels reduction-related certifications and qualification courses, as detailed below in Section 3, Part 2 Wrap-around Services. Page 153 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 5 | P a g e 3. Physical Training a. Physical training (cardiovascular, strength, and flexibility) is a consistent part of the workweek to ensure that all members are prepared for the physical work of hazardous fuel removal. b. Physical training for successful completion of the Cal-JAC Candidate Physical Ability Test (CPAT). 4. Hazardous fuel removal a. Cut, remove, and chip dead and dying trees and brush b. Chop, rake, remove, and chip excess ground litter c. Cut, trim, prune, and chip ladder fuels d. Cut and remove invasive non-native plants e. Spread chipped and mulched vegetation f. Hand-spread native plant species seeds g. These tasks require the use of chainsaws, brush cutters, trimmers, pole saws, rakes, McLeods, Pulaskis, axes, rhinos, rogue hoes, shovels, mowers, chippers, mulchers, and skid steer tractors. 5. Public Education a. Participate in CVFD public education and community events. b. Interact with the public while performing hazardous fuels reduction activities. 6. Disaster Service Worker a. Filling, distributing, and placing sandbags. b. Clearing debris to re-open roadways after windstorms, rains, or floods. Partners 1. CVFD Suppression Personnel: The Fuels Crew is led by full-time CVFD suppression personnel, who manage day-to-day operations, coordinate daily hazardous fuels reduction activities, disaster service activities, provide hazardous fuels reduction training, lead physical fitness training, provide day-to-day guidance and mentorship, and ensure the safety of working crews. 2. City of Chula Vista Public Works Department Open Space Division: Assist in day-to- day operations, providing feedback on areas targeted for fuels mitigation such as safety concerns, access, species identification, and transfer of vegetation debris. During disaster service work, they coordinate activities, needs, and equipment with Fuels Crew members. 3. Environmental Biologists: On-site with the Fuels Crew to ensure that wildlife is undisturbed and sensitive habitats are maintained. Educate Fuels Crew members on endangered species and the identification of native and non-native plant species. 4. US Fish and Wildlife and US Forest Service: Provide valuable training and experience to the Fuels Crew members as they train and work together on fuels reduction projects. 5. City of Chula Vista Shop: Assist and coordinate heavy equipment maintenance and repair with Fuels Crew members. 6. Training Instructors/Cadre: a. Suppression firefighters (wildland/hazardous fuels reduction subject matter experts) lead training activities such as power and hand tool use, fuels removal, fuels chipping, heavy equipment use/operation, tool and equipment maintenance, emergency vehicle operations, and safety. These CVFD suppression members also provide mentoring and guidance for Fuels Crew members with their education and career goals. Page 154 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 6 | P a g e b. Suppression firefighters, EMTs, and paramedics lead training and courses such as EMT Preparation, CPR Certification, EMT, and National Registry Preparation Courses. c. Qualified NWCG firefighters and hand crew personnel instruct courses specific to Wildland Firefighter Type 1 and Wildland Firefighter Type 2 certifications. These instructors are either qualified CVFD suppression personnel or are from other local and regional fire departments and colleges. d. CVFD Training Division and suppression personnel will provide Commercial Driver's License training for emergency vehicle operation. e. CVFD suppression firefighters will provide OSHA-compliant skid steer and remote- controlled heavy equipment operation and certification. 7. Chula Vista Fire Safe Council: Coordinate and participate in public education and community events. Fuels Crew members attend these events with other CVFD members to provide education and awareness training in fire prevention, wildfire prevention, and emergency preparedness. What is the proposed start date for programming that will use this funding (when will youth be onboarded to begin their service)? The proposed start date is from contract signing and will be a continuous program through December 31, 2027. Recruitment will begin upon confirmation of a grant award. Hiring Timelines 1. Contract signing to December 31, 2027: Recruitment 2. January 1, 2027, to December 31, 2027: 32 youth fellows hired Are you planning on using this funding for a summer employment program? Yes, 20 of the 32 youth fellows are built into our staffing plan and program design for summer/part-time employment. Our proposal is not designed to be solely for a summer/part- time employment program; however, youth fellows interested in participating in the CVFD Fuels Crew as summer employment or on a part-time basis are expected. Our program is designed with flexibility for youth fellows with other obligations, such as school, other development programs, and/or other jobs they would like to maintain during the performance period of the grant. We anticipate many youth fellows will begin in the summer employment/part-time option and then transition into the full-time category within this grant funding or into full-time positions with the budgeted CVFD position count. The summer employment youth fellows will have the same access to all wrap-around services and on-duty training programs and will all be offered more than 50% FTE status/hours. Section 3: Youth Recruitment/Development (15 points) How does the municipality plan to recruit youth? To hire qualified youth fellows, the CVFD would utilize our City’s Human Resources Department’s regular Civil Service-regulated hiring process. Youth eligibility requirements listed in California Volunteers Youth Service Corps solicitation will be used to screen and select qualified candidates. Recruitment would be accomplished in the following ways: • Post job announcement Government Jobs Website o Current Job Posting: Job Opportunities | City of Chula Vista (governmentjobs.com) o If awarded, this would be updated to match the pay and benefits described in this grant request. • Program presentation at job fairs/expos at high schools, colleges, and other local employment events. Page 155 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 7 | P a g e • Post program introduction and regular updates on progress/success on CVFD social media sites (Facebook, Instagram). • Share program at CVFD Open House and public education events. • Work directly with the San Diego County Health and Human Resources and local foster care agencies/facilities. • Present program and provide regular updates on progress/success on City of Chula Vista website and Community Connection newsletter. • Partner with The Forestry and Fire Recruitment Program (program supporting formerly incarcerated firefighters). • Coordinate with the Chula Vista Youth Employment Opportunity Program (designed to assist at-risk youth to achieve educational and vocational goals). • Partner with San Diego Workforce Partnership (provides programs designed to prepare young adult for high school graduation, post-secondary education and career success). • Collaborate with local Southern California Indigenous Tribes. • Collaborate with local Chula Vista CBOs assisting under-served and low income: Emo Brown Foundation, Outdoor Outreach, SB Community Services, MANA de San Diego, Casa Familiar. • Post on CalJOBS, Nativehire, Indeed, LinkedIn, Snagajob, Glassdoor, WayUp, CoolWorks, USAJOBS, Idealist, Opportunity Youth Network, Handshake. • Collaborate with Southwestern, Miramar, and Palomar junior colleges offering Fire Science degrees, to advertise and promote the program. The Fuels Crew Program will recruit year-round in response to inevitable attrition and concentrate recruitment on high schools and junior colleges on semester cycles. What wrap around services, if any, is the municipality or subgrantee planning to offer youth? Once youth fellow members are hired as CVFD Fuels Crew members and City of Chula Vista employees, the following wrap-around services will be provided: 1. Transportation Stipends: $5.00 for each working day will be provided for each fellow. This stipend will be added to the fellow’s bi-weekly pay and tracked through CVFD’s fiscal department. 2. Job Readiness Training: Required for every youth fellow to begin work as a Fuels Crew member. Fuels Crew members attend this training during regular duty days, and CVFD provides the costs of tuition, books, and supplies. This training will be delivered in conjunction with Southwestern Community College (fees, tuition, books, and course materials absorbed by CVFD) and upon completion will allow youth fellows to receive college credits. Attendance and certification status is tracked by the CVFD Fuels Crew Supervisors. CVFD Fuels Crew Specific Training: Safe use and maintenance of hand tools, power tools and heavy equipment. Additional training in safe vehicle travel, general field work safety, insect bites, snake bites, pile burning and prescribed fire, hose testing, radio communications, personal safety, on-site emergency responses. Wildland Firefighter Type 2 a) NWCG S-130: Basic Wildland Firefighter Training b) NWCG S-190: Introduction to Wildland Fire Behavior Training c) NWCG L-180: Human Factors in the Wildland Fire Service d) ICS 100: Introduction to the Incident Command System Page 156 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 8 | P a g e 3. EMT Certification: To equip Fuels Crew members with emergency medical services knowledge and skills, making them highly desirable and qualified candidates for public safety positions. This training and education are critical for success in the first responder services. Fuels Crew members attend this training on their own time (evenings and days off) and the costs of tuition, books, and supplies are provided by CVFD. Attendance and performance are tracked by CVFD EMS instructors. Completion and certification are tracked by CVFD EMS Division. EMT Certification and Qualification Coursework a) CVFD EMT Preparation Course b) CVFD CPR Course c) CVFD EMT Course d) CVFD National Registry Preparation Course 4. Advanced Training: Fuels Crew members who continue in the program for more than four months will be eligible to participate in advanced training to improve their abilities. These qualifications make these individuals a more marketable and competitive public safety candidates. Fuels Crew members attend this training on duty, and the costs of tuition/certificates, books, and supplies are provided by CVFD. This training will be delivered in conjunction with Southwestern Community College (fees, tuition, books, and course materials absorbed by CVFD) and, upon completion, will allow youth fellows to receive college credits. Attendance and completion are tracked by the CVFD Fuels Crew Supervisors. Wildland Firefighter Type 1 a) NWCG S-131: Firefighter Type 1 Training b) NWCG RT-130: Wildland Firefighter Safety Annual Refresher Training c) NWCG S-211: Portable Pumps and Water Use d) NWCG S-212: Wildland Fire Chain Saw Use and Maintenance e) NWCG S-219: Firing Operations Advanced Skill Development a) Emergency Vehicle Operation (Commercial Driver’s License/Firefighter Endorsement) b) Skidsteer and Forklift Certification c) Off-Highway Vehicle Driver Course (Utility All-Terrain Vehicle) 5. California Joint Apprenticeship (Cal-JAC) FCTC and CPAT: Fuels Crew members will be provided the fees, tutoring, and physical training so they can earn a spot on the CAL-JAC State-wide Eligibility List. This includes passing the written exam at a Firefighter Candidate Testing Center (FCTC) and completing the Candidate Physical Abilities Test (CPAT). Earning a spot on this list will make them eligible for hire with approximately 150 participating fire departments throughout California. Fees will be reimbursed to the youth fellow through CVFD’s reimbursement program. Test attendance and test completion (pass/fail) will be tracked by the CVFD Fuels Crew Supervisors. The hand and power tools used daily by Fuels Crew members are the same as those used by wildland firefighting hand crews. Training and experience with these tools in this work environment, in addition to certification as a Wildland Firefighter Type 1 and Type 2, EMT certification, and completion of Cal-JAC FCTC and CPAT provides crew members with highly desirable job skills for a first responder career. Page 157 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 9 | P a g e What wage will youth be paid? What length of time do you anticipate the youth serving? Fellows will be paid from $19.52 to $24.58 per hour dependent upon their progression through training qualifications. We anticipate 12 youth fellows to serve in a full-time capacity, working 2080 hours, and 20 more serving in a part-time capacity, working at least 1040 hours. Section 4: Metrics/Outcomes (10 points) Can the municipality provide the required metrics listed above to California Volunteers? CVFD commits to reporting quarterly, annually, and in the appropriate format, the required metric information identified in the solicitation. The additional data described in the solicitation as “if feasible", will also be provided if it is collectible. CVFD will develop a survey tool to capture this data and work with the employees to complete this quarterly. If not, please indicate which metrics the city/county is unable to provide. There are no metrics that the City of Chula Vista is unable to provide. Are there other metrics you will be collecting to determine success of program? CVFD will also collect the following metrics: 1. What barriers were experienced in attaining this position 2. What barriers are keeping them from pursuing a position as a Firefighter, EMT, and/or Paramedic 3. Number of youth who go on to a Junior College or Regional Fire Academy Program 4. Number of youth who go on to pursue the Fire Science Program Degree 5. How youth heard about the program to determine the effectiveness of recruitment methods 6. Number of youth who complete the Wildland Firefighter 2 Coursework 7. Number of youth who complete the Wildland Firefighter 1 Coursework 8. Number of youth who become certified Emergency Medical Technicians 9. Number of Fuels Crew members who go on to pursue a career as a first responder (firefighter, EMT, paramedic) with either CVFD or another agency. 10. Number of acres mitigated of hazardous fuels between September 1, 2026, and December 31, 2027. In 2025, we received funding from the #CaliforniansForAll Youth Service Corps, and over the last 6 months, we have filled 25 of the targeted 30 positions providing paid, real-world experience in hazardous fuels reduction that directly enhances community safety and reduced wildfire risk to our community, aligning with the grant’s climate and public service objectives. Additionally, 20 members have successfully completed their Wildland Type 1 certification, four members are enrolled in the upcoming EMT course scheduled January 2026, and three members have secured full-time positions, two with CVFD as firefighter/EMT, and one as an emergency room tech with a local hospital. Section 5: Budget/Staffing/Communications (25 points) What is your proposed staffing plan for the program? This proposal is requesting salary, benefits, uniforms, personal protective equipment, and wrap- around services for 32 youth fellows. This will expand the existing CVFD Fuels Crew capacity to positively impact the climate, protect and educate the public, and serve the community by reducing the risk of wildfires. Staffing/Supervision The Fuels Crew is supervised by two full-time CVFD Fire Captains who oversee administrative duties and participate in day-to-day operations. These positions are filled with currently funded Page 158 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 10 | P a g e CVFD FTE positions and are their costs are not included in this grant proposal. These CVFD suppression personnel provide experience-based direction for implementing fuel/hazard mitigation efforts and they play a critical role in the guidance, training, and mentoring of the crew members. Work Hours Fuels Crew members work four days per week, 10 hours per day. During these work hours, they train and perform hazardous fuels reduction activities. This work schedule is built around required education and training schedules, providing youth fellows the opportunity for full-time employment while also pursuing their educational goals. Training 1. Job readiness training (Wildland Firefighter Type 2) and advanced training (Wildland Firefighter Type 1) will be led by either NWCG-qualified CVFD fire suppression personnel, or other NWCG-qualified instructors. Training instructor costs are a requested part of this budget. 2. CVFD Fuels Crew-specific training will be led by the full-time CVFD suppression Fuels Crew Supervisors. Fuels Crew-specific training costs will be absorbed by CVFD. 3. CVFD EMS professional certification training will be led by credentialed instructors. EMS certification training instructor costs are part of our requested budget. All other expenses (tuition/certificates, books, and supplies) will be absorbed by CVFD. 4. Skills development training and instruction will be led by CVFD fire suppression training personnel and Fuels Crew Supervisors. Uniforms and Personal Protective Equipment Uniforms include work pants and jackets, long-sleeved shirts, cover shirts, and boots. Personal protective equipment includes helmets, ear and eye protection, gloves, and chaps. What amount of funding is your municipality requesting? How many youths will be able to participate in the program with this amount of funding? The CVFD requests $1,499,974.31 to implement this proposed program from contract signing through December 31, 2027, for 12 full-time fellows and 20 summer employment/part-time fellows. This would allow for a total of 32 youth fellows to participate in the CVFD Fuels Crew Program and begin their path to a full-time career within fire and EMS emergency services. Does your municipality commit to using California Volunteers developed branding and orientation for this program and participating in California Volunteers-organized events trainings, and activities, if asked? The City of Chula Vista commits to using California Volunteers developed branding and orientation, and to participating in organized events trainings, and activities. We also commit to incorporating California Volunteers’ material into onboarding and offboarding, and to participation in one California Service Corps convening per year. Page 159 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Applicant: Contact information:Chris Manroe, Fire Chief (619)992-5648 cmanroe@chulavistaca.gov Items Description Calculation Total Budget % Allocation Cross Check Administrative Costs 6.76%6.76%94,977.76$ Total 94,977.76$ 6.33% I - B. Direct Operating Costs (Must not exceed 30% of Total Award when combined with Section I-A. Administration) Items Description Calculation Total Budget % Allocation Cross Check Total -$ 6.33% # Requested Hourly Salary # of Hours Total Budget % Allocation Cross Check 3 24.58 2080 153,379.20$ Full Time Positions (100% FTE) 9 23.57 2080 441,230.40$ Full Time Positions (100% FTE) 20 19.52 1040 406,016.00$ Part-time Employment (More than 50% FTE) 32.00 1,000,625.60$ 66.71% Items Description Calculation Total Budget Medicare Medicare cost at 1.45% per hour. City does not pay into Social Security (FICA) because the CA PERS excludes this federal benefit.1.45%14,509.07$ Worker's Compensation 1200.00 38,400.00$ Healthcare $9,000 108,000.00$ Retirement for Full Time Participants 11.2%66,596.28$ Retirement Retirement (PARS) cost at 3.8%15,225.60$ Total 242,730.95$ 16.18% Items Description Calculation Total Budget % Allocation Cross Check Unifoms/PPE Uniforms/PPE for each fellow include: pants, long sleeve shirts, cover shirts, boots, helmet, eye protection, sunscreen, chaps and gloves. Costs based on actual cost per crew member for existing CVFD Fuels Crew Members $1,200 38,400.00$ For all newly hired Hand Crew Members Transportation Stipend $5.00 per working day for fellows during the 12/31/2027 =209 working days (4/10 work schedule)) for gas/public transportation 209 days at $5/working day/fellow 33,440.00$ Cal-JAC FCTC Fee for Preparation Course & $75/Fellow ($25- prep course & $50- 2,400.00$ Cal-JAC CPAT $165/Fellow EMS Professional Certifcation/Qualificati CVFD EMT Preparation Course Instructor Cost for 40 hours (1) Instructor for 40 hours at $90/hour 3,600.00$ EMS Professional Certifcation/Qualificati CVFD CPR Course Instructor (1) Instructor for 16 hours at $90/hour 1,440.00$ EMS Professional Certifcation/Qualificati CVFD EMT Course Instructor hours at $90/hour 15,480.00$ EMS Professional Certifcation/Qualificati on Training CVFD EMT National Registry Preparation Course Instructor Cost for 24 hours (1) Instructor for 24 hours at $90/hour 2,160.00$ Job Readiness Training National Wildfire Coordinating Group S-131 Wildland Firefighter Type 1 Training (1) Instructor for 40 hours at $75/hour 3,000.00$ For all new Fuels Module Crew Members and new Hand Crew Members S-131, Firefighter Type 1 is designed to meet the training needs of the Firefighter Type 1 (FFT1) and/or Incident Commander Type 5 (ICT5). Topics include operational leadership, communications, LCES, and tactical decision-making. III. CaliforniansForAll Youth Workforce Fellows - Other Fellow Costs IV. Program Wrap-Around Services (Not to Exceed 40% of Total Award) Youth Service Corps Budget Template I - A. Administration (Must not exceed 10% of total award) II. Youth Service Corps Fellow Wages (Must be at least 50% of grant amount) # LCI - Public Exhibit B - Budget Detail City of Chula Vista JP2002-Y2526 Page 160 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Job Readiness Training National Wildfire Coordinating Group S-211 Portable Pumps and Water Use (1) Instructor for 40 hours at $125/hour 5,000.00$ For all new Fuels Module Crew Members and new Hand Crew Members This course provides knowledge and skills to design, setup, operate, troubleshoot, and shut down portable water delivery systems. The focus is on portable pumps – it does not address water delivery for engines. Topics covered include: portable water delivery systems; equipment; roles and responsibilities; and system design and hydraulics. There is also a field exercise where students will apply what they learned in the classroom. Advanced Training National Wildfire Coordinating Group S-212 Wildland Fire Chainsaw Use & Maintenance Training Instructor Cost for 24 hours. (5) Instructors for 40 hours at $55/hour 11,000.00$ For all new Fuels Module Crew Members and new Hand Crew Members This is an instructor-led course intended for presentation at the local level. The course lessons introduce the function, maintenance, and use of internal combustion engine- powered chainsaws, as well as their tactical applications in wildland fire. Field exercises support entry-level training for firefighters with little or no previous experience operating a chainsaw, providing hands-on cutting experience in settings such as fireline situations. Advanced Training National Wildfire Coordinating Group S-270 Basic Air Operations (1) Instructor for 40 hours at $125/hour 5,000.00$ For all new Fuels Module Crew Members and new Hand Crew Members This course covers aircraft types and capabilities, aviation aircraft, tactical and logistical uses of aircraft, and requirements for helicopter take-off and landing areas. Note: The regulations, procedures, and policies addressed in this course are primarily those governing federal agency and ICS operations. Advanced Training National Wildfire Coordinating Group S-290 Intermediate Fire Behavior (2) Instructors for 40 hours at $75/hour 6,000.00$ For all newly promoted or hired Hand Crew Members This is a skills focused course designed to prepare the developing fireline supervisor to undertake safe and effective fire management operations. It is the second course in a series that collectively serves to develop fire behavior prediction knowledge and skills. The course will train students how to make a thorough, timely assessment of the fire environment and to anticipate changes in fire behavior based on changes in and/or alignment of the fuels, weather, and topography. Students will then practice using this information to support their decision-making and risk management on the fireline. Job Readiness Training CVFD Trailer Driving (2) Instructors for 20 hours at $75/hour 3,000.00$ For all newly promoted or hired Hand Crew Members The crew utilizes numerous various size trailers in daily operations. Students would receive instruction on safety, pre Advanced Training National Wildfire Coordinating Group CA-219 Firing Operations Training Instructor Cost for 40 hours. (2) Instructors for 40 hours at $95/hour 7,600.00$ and skills to perform the duties of a Firing Boss, Single Resource (FIRB) position, as described in the NWCG Standards for Firing Boss, Single Resource, PMS-350-105. Subjects taught include planning, implementing, and evaluating a wildland or prescribed fire operation and choosing the proper components of a Firing Plan to meet specific objectives. Advanced Training National Wildfire Coordinating Group S-230 Crew Boss (1) Instructor for 40 hours at $50/hour 2,000.00$ and skills to perform the duties of the Crew Boss (CRWB) for Crew Boss, PMS-350-98. Topics include travel and check-in in, briefings, assigning tasks and assessing crew performance, implementing fire line duties, mop-up, firing operations, using aerial resources, medical emergencies, and wildland urban interface. Advanced Training National Wildfire Coordinating Group S-236 Heavy Equipment Boss (1) Instructor for 40 hours at $60/hour 2,400.00$ This is a skill course designed to meet the training needs of a Heavy Equipment Boss, Single Resource (HEQB) on an incident as outlined in the NIMS: Wildland Fire Qualification System Guide, PMS 310-1, and the position task book developed for the position. Primary considerations are tactical use and safety precautions required to establish and maintain an effective dozer operation. Advanced Training Ntional Wildfire Coordinating Group S-244 Field Observer (1) Instructor for 40 hours at $60/hour 2,400.00$ This course provides students with the skills necessary to perform as a Field Observer (FOBS) and/or a Fire Effects Monitor (FEMO). Topics include roles and responsibilities of the FOBS and FEMO; how to make observations and document those observations; how to produce hand-drawn and GPS field maps; and how to navigate using a compass and GPS. Advanced Training National Wildfire Coordinating Group S-271 Helicopter Crewmember (2) Instructors for 40 hours at $95/hour 7,600.00$ This is a skill course designed to meet the training needs of a Helicopter Crewmember, Single Resource (HECM) on an incident as outlined in the NIMS: Wildland Fire Qualification System Guide, PMS 310-1, and the position task book developed for the position. Primary considerations are tactical use and safety precautions required to establish and maintain an effective helicopter operations. Skill Development Driver Training (Firefighter Endorsement) (1) Instructor for 16 hours at $75/hour 1,200.00$ firefighter endorsement to operate. The emergency vehicle operator class would teach safety, pre-trip inspection, and driving operations. Skill Development Skidsteer/Forklift Certification (1) Instructor for 40 hours at $50/hour 2,000.00$ The crew operates a skid steer on a daily basis. A skid steer operator course teaches safety, pre-checks, operation, and Skill Development Recreational Off-Highway Vehicle (ROHVA) Basic Driver Course (1) Instructor for 16 hours at $40/hour UTVs are utilized by the fire department for special events, emergency operations and projects. Students would receive a UTV operator certificate and training on how to safely # LCI - Public Page 161 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Advanced Training National Wildfire Coordinating Group RT130 Wildland Firefighter Safety and Awareness Training Instructor Cost for 8 hours. (1) Instructor for 8 hours at $75/hour 600.00$ This course focuses on decision-making issues related to safety in order to recognize and mitigate risk, maintain safe and effective practices, and reduce accidents and near misses. Total 161,640.00$ 10.78% Subtotal 1,404,996.55$ Total Budget Request 1,499,974.31$ Total # of Fellows 32 Partner Status (Proposed or Secured)Contractual Amount Total -$ # LCI - Public Page 162 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda City of Chula Vista Agreement #JP2002-Y2526 EXHIBIT C Budget Payment Provisions California Volunteers, Youth Service Corps City of Chula Vista Page 1 of 1 LCI - Public BUDGET PAYMENT PROVISIONS 1. Invoicing and Payment a) For services satisfactorily rendered, and upon receipt and approval of the invoices, the State agrees to compensate the Contractor for actual expenditures incurred in accordance with the rates specified herein, which is attached hereto and made a part of this Agreement. b) Invoices shall include the Agreement Number and shall be submitted via PDF to Gaolou.Yang@californiavolunteers.ca.gov. 2. Budget Contingency Clause a) It is mutually agreed that if the Budget Act of the current year and/or any subsequent years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall be of no further force and effect. In this event, the State shall have no liability to pay any funds whatsoever to the Contractor or to furnish any other considerations under this Agreement and the Contractor shall not be obligated to perform any provisions of this Agreement. b) If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the State shall have the option to either cancel this Agreement with no liability occurring to the State or offer an agreement amendment to Contractor to reflect the reduced amount. Page 163 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda City of Chula Vista JP2002-Y2526 Exhibit D California Volunteers - Reporting (Metrics, Deadlines and Process), Invoicing, Service Events and/or Member Convenings, Programmatic and Fiscal Document Retention LCI - Public Youth Service Corps Program All Youth Service Corps Program grantees will be responsible for providing periodic and timely reports on outcomes and outputs associated with the funding received from this program. Reporting Metrics Municipalities will be required to report the following metrics and demographic data monthly to California Volunteers through the cloud-based platform America Learns or in any other format or method specified by California Volunteers. • Number of applications submitted for the program – (aggregated per municipality in monthly report) • Number of open positions in the program – (aggregated per municipality in monthly report) • Number participants in the program – (aggregated per municipality in monthly report) • Number of participants serving in each identified focus area: Climate, Food Insecurity, Education, Public Service, and Other – (aggregated per municipality in monthly report) • Number of participants actively serving as of the last day of the reporting period - (aggregated per municipality in monthly report) • Number of participants in a summer specific program, if applicable – (aggregated per municipality in monthly report) • Number of participants completing the program and/or exiting early for compelling or non-compelling reasons – (aggregated per municipality in monthly report) • Total program hours served during the month of reporting – (aggregated per municipality in monthly report) • Number of participants who identified as low-income – (aggregated per municipality in monthly report) • Number of participants who identified as justice-involved – (aggregated per municipality in monthly report) • Number of participants who identified as in or transitioning from foster care – (aggregated per municipality in monthly report) Page 164 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda City of Chula Vista JP2002-Y2526 Exhibit D California Volunteers - Reporting (Metrics, Deadlines and Process), Invoicing, Service Events and/or Member Convenings, Programmatic and Fiscal Document Retention LCI - Public • Number of participants who identified as engaged with the mental health or substance abuse system – (aggregated per municipality in monthly report) • Number of participants who identify as homeless or formerly homeless – (aggregated per municipality in monthly report) • Other metrics as determined by California Volunteers Municipalities will be required to conduct a California Volunteers-developed baseline exit survey with participants within 14 days of planned program exit (while still in service) and provide requested information in a format and method to be specified by California Volunteers. Additionally, municipalities agree to make participant contact information available to California Volunteers as requested to use in program communications including, but not limited to: • Name • Zip code • Phone number • Email address • Program completion status • Other relevant information/data/stories Reporting Deadlines: Report Reporting Period Reports Due Program Monthly Narrative Quarterly Member Ongoing Host Site Ongoing Page 165 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda City of Chula Vista JP2002-Y2526 Exhibit D California Volunteers - Reporting (Metrics, Deadlines and Process), Invoicing, Service Events and/or Member Convenings, Programmatic and Fiscal Document Retention LCI - Public California Volunteers will update this reporting timeline with additional reporting periods, upon receipt of updated reporting timelines established by the California Department of Finance. Reporting metrics may be updated, depending on updated guidance from the California Department of Finance. Reporting Process: Municipalities will be required to report the following metrics and demographic data monthly to California Volunteers through the cloud-based platform America Learns or in any other format or method specified by California Volunteers. Invoicing: This grant is a cost-reimbursement grant. As such, grantees will be required to submit periodic and timely invoices to California Volunteers for expenses already incurred for processing and payment. Grantees have the discretion to invoice monthly or quarterly. Invoicing Deadlines: Grantees have the discretion to invoice monthly or quarterly. If monthly, invoices should be submitted by the 15th of the following month. If quarterly, invoices should be submitted no later than the due date identified in the reporting deadlines above. Service Events and/or Member Convenings: Municipalities agree to incorporate California Volunteers’ materials into the onboarding and offboarding process and commit to having participants join at least one California Service Corps convening annually, as requested by California Volunteers. Programmatic and Fiscal Document Retention In line with State requirements regarding record retention, grantees are required to maintain all documentation, programmatic and fiscal, pertaining to this contract for a period of five years after the close out the contract and the payment of the final invoice. The grantee is required to maintain books, records, documents, and other evidence pertaining to the reimbursable costs and hold Page 166 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda City of Chula Vista JP2002-Y2526 Exhibit D California Volunteers - Reporting (Metrics, Deadlines and Process), Invoicing, Service Events and/or Member Convenings, Programmatic and Fiscal Document Retention LCI - Public them available for audit and inspection by the State for the five years following the close out of the contract and payment of the final invoice. These retention requirements pertain to all contracts associated with this program, regardless of funding source. Page 167 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Form Rev 9/30/2025 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE GOVERNOR’S OFFICE OF SERVICE AND COMMUNITY ENGAGEMENT/CALIFORNIA VOLUNTEERS #CALIFORNIANSFORALL 2025-2026 YOUTH SERVICE CORPS GRANT AND AUTHORIZING THE FIRE CHIEF TO EXECUTE ASSOCIATED GRANT DOCUMENTS WHEREAS, the California Volunteers is the State Service Commission for California; and WHEREAS, the California Volunteers is responsible for engaging Californians in service, volunteering, and civic action to tackle the State’s most pressing challenges and lift up all communities; and WHEREAS, the City of Chula Vista (“City”) Hazard Mitigation Plan classifies wildfire as a highly significant threat to the City and its residents; and WHEREAS, the Chula Vista Fire Department (“Fire Department”) established the Hazardous Fuels Reduction Program (“Program”) in 2023 to begin systematic hazardous fuels reduction in priority areas throughout the City, including op en space within fire hazard severity zones and along critical evacuation routes; and WHEREAS, to support the Program, the Fire Department established a specialized vegetation fuel management crew (the “Fuels Crew”) to reduce wildfire risk to the community; and WHEREAS, in December 2025 the Fire Department applied to the California Governor’s Office of Service and Community Engagement/California Volunteers #CaliforniansForAll (“California Volunteers”) for funding through the Governor’s 2025-2026 Youth Service Corps – Competitive Program initiative administered by California Volunteers; and WHEREAS, California Volunteers has now granted the City a funding award of $1,499,974.31 (“Grant Award”); and WHEREAS, the Fire Department will use the Grant Award to support the Program’s hazardous fuels reduction projects throughout the City and adjacent areas and workforce development through the Fuels Crew. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it accepts the California Governor’s Office of Community Engagement/California Volunteers #CaliforniansForAll 2025-2026 Youth Service Corps grant award, in the amount of $1,499,974.31. BE IT FURTHER RESOLVED, by the City Council of the City of Chula Vista that it authorizes the Fire Chief to execute any and all associated grant agreements and amendments Page 168 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Resolution No. Page 2 necessary and appropriate to implement this resolution, in such form as may be required or approved by the City Attorney, on behalf of the City, and directs that copies of such documents be kept on file with the Office of the City Clerk. Presented by Approved as to form by Chris Manroe Marco A. Verdugo Fire Chief City Attorney Page 169 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda v . 0 0 5 P a g e | 1 April 21, 2026 ITEM TITLE Grant Application and Appropriation: Authorize Submission of an Application for the Fiscal Year 2025 Edward Byrne Memorial Justice Assistance Grant and Appropriate Funds Report Number: 26-0124 Location: No specific geographic location Department: Police G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended Action Adopt a resolution authorizing submission of a grant application for the Fiscal Year 2025 Edward Byrne Memorial Justice Assistance Grant, authorizing the City Manager to execute grant documents, and amending the Fiscal Year 2025-26 budget to appropriate grant funds. (4/5 Vote Required) SUMMARY The City of Chula Vista Police Department (“Police Department”) has received a notice of funding opportunity for the Fiscal Year 2025 Edward Byrne Memorial Justice Assistance Grant Program. As part of the application requirements established by the U.S. Department of Justice, Bureau of Justice Assistance, the grant application must be made available to the City of Chula Vista governing body for review prior to submission. Approval of this item will allow the City to secure available federal funding to support community policing efforts. ENVIRONMENTAL REVIEW The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Page 170 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 2 BOARD/COMMISSION/COMMITTEE RECOMMENDATION At its April 10, 2025 meeting, the Measure A Citizens’ Oversight Committee received the Proposed Fiscal Year 2025-26 Measure A Public Safety Spending Plan and determined that the proposed expenditures comply with the requirements of Measure A. The Fiscal Year 2025-26 Measure A Public Safety Spending Plan includes funding for the Police Community Relations Specialist position, which is partially supported by anticipated Justice Assistance Grant funds. The Measure A spending plan estimated a grant allocation of $63,372. DISCUSSION The Edward Byrne Memorial Justice Assistance Grant (JAG) Program is a federal funding source administered by the U.S. Department of Justice that supports state and local criminal justice initiatives and provides flexible funding for locally identified public safety priorities, including crime prevention, community outreach, and law enforcement support services. These non-competitive funds are distributed based on population and Part I violent crime statistics, including homicide, rape, robbery, aggravated assault, and human trafficking. Use of JAG funds is subject to federal requirements, including that funds supplement, not supplant, existing local funding. Federal law also requires that the grant application be submitted to the City Council for review and made available for public comment prior to submission. (34 U.S.C. § 10153(a).) The Fiscal Year 2025 JAG solicitation was released on March 13, 2026, and on March 14, 2026, the Police Department received notice of its allocation in the amount of $69,925. This item is presented to the City Council for review prior to the application submission deadline. The Police Department proposes to use these funds to partially fund the Police Community Relations Specialist position during fiscal year 2025-26, consistent with prior years. The JAG Program grant performance period is 48 months, beginning retroactively on October 1, 2024. The Police Community Relations Specialist advances the City’s community policing strategy and serves as a primary liaison between the Police Department and the community, facilitating communication, building trust, and promoting transparency. Key responsibilities include:  Coordinating and participating in community meetings and public outreach events  Conducting Crime Prevention Through Environmental Design (CPTED) assessments for residents and businesses  Managing programs such as the Community Police Academy and Teen Police Academy  Responding to community inquiries and fostering collaborative partnerships Through these efforts, the position advances the Police Department’s prevention and education objectives, strengthens community relationships, and contributes to overall public safety. The grant application process requires a two-step submission through Grants.gov and JustGrants. The initial submission (SF-424) through Grants.gov was completed on March 19, 2026 (Attachment 1). Staff now seeks authorization to complete the application process in JustGrants and to authorize the City Manager to execute all related grant documents. Page 171 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 3 DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act. (Cal. Gov. Code § 87100, et seq.) Staff is not independently aware and has not been informed by any City Council member of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT Approval of the resolution will authorize the submission of the Justice Assistance Grant application, with an anticipated award of $69,925, and will increase appropriations by $6,553 in the Other Expenses category of the Police Grants section of the Federal Grants Fund. These additional funds will partially offset personnel costs for the Police Community Relations Specialist in fiscal year 2025-26. The Fiscal Year 2025-26 budget included an estimated JAG allocation of $63,372 based on the prior year award. The tables below outline the requested amendments to align the Fiscal Year 2025-26 budget with the updated allocation. Federal Grants Fund Adopted Budget FY 2025-26 Amendment Amended Budget REVENUE TOTAL ($63,372) ($6,553) ($69,925) EXPENSE TOTAL $63,372 $6,553 $69,925 NET FISCAL IMPACT $0 $0 $0 ONGOING FISCAL IMPACT Justice Assistance Grant funds are awarded on an annual basis, and the Police Department anticipates continuing to use these funds to partially support the Police Community Relations Specialist position. Any difference between the full costs of the position and the grant award amount will be addressed through the annual budget development process in future fiscal years. ATTACHMENTS 1. Application for Federal Assistance (SF-424) Staff Contact: Acting Chief of Police Dan Peak Police Administrative Services Manager Jonathan Alegre Page 172 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING SUBMISSION OF A GRANT APPLICATION FOR THE FISCAL YEAR 2025 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM, AUTHORIZING THE CITY MANAGER TO EXECUTE GRANT DOCUMENTS AND AMENDING THE FISCAL YEAR 2025-26 BUDGET TO APPROPRIATE GRANT FUNDS WHEREAS, the Edward Byrne Memorial Justice Assistance Grant (“JAG”) Program is a federal funding source administered by the U.S. Department of Justice, Bureau of Justice Assistance, that supports state and local criminal justice initiatives; and WHEREAS, the JAG Program provides flexible funding for locally identified public safety priorities, including crime prevention, community outreach, and law enforcement support services; and WHEREAS, JAG Program funds are distributed based on population and Part I violent crime statistics; and WHEREAS, the Fiscal Year 2025 JAG solicitation was released on March 13, 2026, and on March 14, 2026, the Chula Vista Police Department (“Police Department”) received notice of its allocation in the amount of $69,925; and WHEREAS, the Police Department proposes to use these funds to partially fund the Police Community Relations Specialist position during fiscal year 2025-26; and WHEREAS, the Police Community Relations Specialist advances the City’s community policing strategy and serves as a primary liaison between the Police Department and the community, facilitating communication, building trust, and promoting transparency; and WHEREAS, federal law requires that the grant application be submitted to the City Council for review and made available for public comment prior to submission; and WHEREAS, approval of this resolution will allow the City to submit the grant application and secure available federal funding to support the City’s community policing efforts. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that the City of Chula Vista is authorized to submit the application to the U.S. Department of Justice for the Fiscal Year 2025 Edward Byrne Memorial Justice Assistance Grant. Page 173 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the City Manager is hereby authorized to execute in the name of the City of Chula Vista all grant documents, including but not limited to, applications, agreements, amendments, and requests for payment, necessary to secure and implement the grant. BE IT FURTHER RESOLVED by the City Council of the City of Chu la Vista, that the Fiscal Year 2025-26 budget is amended by appropriating an additional $6,553 in the Other Expenses category of the Police Grants section of the Federal Grants Fund. Presented by Approved as to form by Dan Peak Marco A. Verdugo Acting Police Chief City Attorney Page 174 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda WORKSPACE FORM This Workspace form is one of the forms you need to complete prior to submitting your Application Package. This form can be completed in its entirety offline using Adobe Reader. You can save your form by clicking the "Save" button and see any errors by clicking the “Check For Errors” button. In-progress and completed forms can be uploaded at any time to Grants.gov using the Workspace feature. When you open a form, required fields are highlighted in yellow with a red border. Optional fields and completed fields are displayed in white. If you enter invalid or incomplete information in a field, you will receive an error message. Additional instructions and FAQs about the Application Package can be found in the Grants.gov Applicants tab. 1-800-518-4726 SUPPORT@GRANTS.GOV OPPORTUNITY & PACKAGE DETAILS: Opportunity Number:O-BJA-2025-172542 Opportunity Title:BJA FY25 Edward Byrne Memorial Justice Assistance Grant (JAG) Program – Local Formula Opportunity Package ID:PKG00292120 Assistance Listing Number:16.738 Assistance Listing Title:Edward Byrne Memorial Justice Assistance Grant Program Competition ID: Competition Title: Opening Date:03/13/2026 Closing Date:04/21/2026 Agency:Bureau of Justice Assistance Contact Information:OJP Resource Center APPLICANT & WORKSPACE DETAILS: Workspace ID:WS01626404 Application Filing Name:FY25 JAG - City of Chula Vista UEI:KVBYLRZMAGJ9 Organization:CHULA VISTA, CITY OF Form Name:Application for Federal Assistance (SF-424) Form Version:4.0 Requirement:Mandatory Download Date/Time:Mar 19, 2026 12:27:54 PM EDT Form State:No Errors FORM ACTIONS: Page 175 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda OMB Number: 4040-0004 Expiration Date: 11/30/2025 * 1. Type of Submission: * 2. Type of Application: * 3. Date Received: 4. Applicant Identifier: 5a. Federal Entity Identifier: 5b. Federal Award Identifier: 6. Date Received by State: 7. State Application Identifier: * a. Legal Name: * b. Employer/Taxpayer Identification Number (EIN/TIN): * c. UEI: * Street1: Street2: * City: County/Parish: * State: Province: * Country: * Zip / Postal Code: Department Name: Division Name: Prefix: * First Name: Middle Name: * Last Name: Suffix: Title: Organizational Affiliation: * Telephone Number: Fax Number: * Email: * If Revision, select appropriate letter(s): * Other (Specify): State Use Only: 8. APPLICANT INFORMATION: d. Address: e. Organizational Unit: f. Name and contact information of person to be contacted on matters involving this application: Application for Federal Assistance SF-424 Preapplication Application Changed/Corrected Application New Continuation Revision Completed by Grants.gov upon submission. CITY OF CHULA VISTA 956000690 KVBYLRZMAGJ9 276 4TH AVE CHULA VISTA SAN DIEGO CA: California USA: UNITED STATES 919102699 POLICE DEPARTMENT JONATHAN ALEGRE POLICE ADMINISTRATIVE SERVICES MANAGER 6194762570 jalegre@chulavistapd.org Page 176 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda * 9. Type of Applicant 1: Select Applicant Type: Type of Applicant 2: Select Applicant Type: Type of Applicant 3: Select Applicant Type: * Other (specify): * 10. Name of Federal Agency: 11. Assistance Listing Number: Assistance Listing Title: * 12. Funding Opportunity Number: * Title: 13. Competition Identification Number: Title: 14. Areas Affected by Project (Cities, Counties, States, etc.): * 15. Descriptive Title of Applicant's Project: Attach supporting documents as specified in agency instructions. Application for Federal Assistance SF-424 C: City or Township Government Bureau of Justice Assistance 16.738 Edward Byrne Memorial Justice Assistance Grant Program O-BJA-2025-172542 BJA FY25 Edward Byrne Memorial Justice Assistance Grant (JAG) Program – Local Formula POLICE COMMUNITY RELATIONS View AttachmentsDelete AttachmentsAdd Attachments View AttachmentDelete AttachmentAdd Attachment Page 177 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda * a. Federal * b. Applicant * c. State * d. Local * e. Other * f. Program Income * g. TOTAL . Prefix: * First Name: Middle Name: * Last Name: Suffix: * Title: * Telephone Number: * Email: Fax Number: * Signature of Authorized Representative: * Date Signed: 18. Estimated Funding ($): 21. *By signing this application, I certify (1) to the statements contained in the list of certifications** and (2) that the statements herein are true, complete and accurate to the best of my knowledge. I also provide the required assurances** and agree to comply with any resulting terms if I accept an award. I am aware that any false, fictitious, or fraudulent statements or claims may subject me to criminal, civil, or administrative penalties. (U.S. Code, Title 18, Section 1001) ** The list of certifications and assurances, or an internet site where you may obtain this list, is contained in the announcement or agency specific instructions. Authorized Representative: Application for Federal Assistance SF-424 * a. Applicant Attach an additional list of Program/Project Congressional Districts if needed. * b. Program/Project * a. Start Date: * b. End Date: 16. Congressional Districts Of: 17. Proposed Project: CA-051 CA-051 Add Attachment Delete Attachment View Attachment 07/01/2025 06/30/2026 69,925.00 0.00 0.00 0.00 0.00 0.00 69,925.00 a. This application was made available to the State under the Executive Order 12372 Process for review on b. Program is subject to E.O. 12372 but has not been selected by the State for review. c. Program is not covered by E.O. 12372. Yes No Add Attachment Delete Attachment View Attachment ** I AGREE JONATHAN ALEGRE POLICE ADMINISTRATIVE SERVICES MANAGER 6194762570 jalegre@chulavistapd.org Completed by Grants.gov upon submission. * 20. Is the Applicant Delinquent On Any Federal Debt? (If "Yes," provide explanation in attachment.) * 19. Is Application Subject to Review By State Under Executive Order 12372 Process? Completed by Grants.gov upon submission. If "Yes", provide explanation and attach Page 178 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda v . 0 0 5 P a g e | 1 April 21, 2026 ITEM TITLE Meeting Designation: Designate July 7, 2026 as a Non-Regular Meeting Day Pursuant to Chula Vista Municipal Code Section 2.04.020 Report Number: 26-0121 Location: No specific geographic location Department: City Manager G.C. § 84308 Regulations Apply: No Environmental Notice: This activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended Action Place an ordinance on first reading designating July 7, 2026 as a non-regular meeting day pursuant to Chula Vista Municipal Code Section 2.04.020 (First Reading). SUMMARY This item designates July 7, 2026, as a non-regular meeting day. This action ensures that the date is not considered a regular meeting for purposes of timing requirements tied to regular meetings. ENVIRONMENTAL REVIEW The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA), and it has been determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. Page 179 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 2 DISCUSSION Chula Vista Municipal Code Section 2.04.020 establishes that regular City Council meetings are held on the first through fourth Tuesdays of each month. The section also provides that meetings may be canceled as necessary. Lastly, this section provides that “[i]t shall be the general policy of the City Council to cancel any meetings in the…first week of July…” and “these meetings may be reinstituted if necessary by a majority of the Council.” July 7, 2026 falls on the first Tuesday of the month and would otherwise be considered a regular meeting; however, based upon the subsequent language in the Municipal Code, this meeting would be canceled unless reinstituted by a majority vote the Council. While the Council may cancel a meeting, certain procedural requirements under state law, such as election certification, and local practice are tied specifically to “regular” meetings. To avoid unintended procedural consequences, it is recommended to formally designate this date as a non- regular meeting day. This action provides clarity for the administration of agenda timing and related requirements. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Councilmembers do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware and has not been informed by any City Councilmember of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT There is no current year fiscal impact as a result of this action. ONGOING FISCAL IMPACT There is no ongoing fiscal impact as a result of this action. ATTACHMENTS None Staff Contact: Tiffany Allen, City Manager Adrianna Relph, Special Projects & Legislative Manager Page 180 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda C:\Program Files\eSCRIBE\TEMP\1754088307\1754088307,,,Ordinance .docx ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA DESIGNATING JULY 7, 2026, AS A NON-REGULAR MEETING DAY PURSUANT TO CHULA VISTA MUNICIPAL CODE SECTION 2.04.020 WHEREAS, Chula Vista Municipal Code Section 2.04.020 establishes that regular meetings of the City Council are held on the first, second, third, and fourth Tuesday of each month; and WHEREAS, July 7, 2026, falls on the first Tuesday of the month and would otherwise be a regular meeting day; and WHEREAS, Chula Vista Municipal Code Section 2.04.020 provides that regular meetings may be canceled as necessary; and WHEREAS, the City Council finds that it is necessary to designate July 7, 2026, as a non- regular meeting day to ensure that the date is not considered a regular meeting for purposes of procedural requirements tied to regular meetings; and WHEREAS, this action promotes clarity in the administration of meeting and agenda requirements. NOW, THEREFORE the City Council of the City of Chula Vista does ordain as follows: Section I. Pursuant to Chula Vista Municipal Code Section 2.04.020, July 7, 2026, is hereby designated as a non-regular meeting day and shall not be considered a regular meeting of the City Council for any purpose. Section II. Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Page 181 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Ordinance Page 2 Section III. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section IV. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section V. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by Approved as to form by Tiffany Allen Marco A. Verdugo City Manager City Attorney Page 182 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda learn more about Micheal Inzunza He Lied To me! I do Not Trust Him! Written Communications Item No. 6 Acosta 4-20-2026 Page 183 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Next Time Micheal Inzunza chase you for a Photo op ask him Regarding Micheal Inzunza claiming to be a military family member Micheal Inzunza might not be a member of a Military Family However, I believe that Micheal Inzunza is part of the •The Slam Lord and the Striper Gate FAMILY •You may want to ask Micheal Inzunza about • "The Slam Lord" and the "Striper Gate." •School Phone Bill •According to the document referenced below, Micheal Inzunza did not pay a Phone Bill of $ 9,788 he created calling including Marco Polo Cortes •Micheal Inzunza are you on Marco Polo Cortes Pay Roll? • Racist Incident at Catholic School Mater Dei Hight School that according to documents resulted in Micheal Inzunza Been suspended then Placed on leave then NEVER EVER rehire •CALL IT WHAT YOU WANT BUT I WOULD CALL IT GETTING FIRE Page 184 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 185 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda GOVERNMENT LIES, CORRUPTION AND MISMANAGEMENT Editor of Sweetwater Union High School District's Blurb Magazine Spent Almost $10,000 on Phone Calls School district paid $9,788 for teacher Inzunza's cell phone use By Leslie Wolf Branscomb UNION-TRIBUNE STAFF WRITER July 2, 2005•Inzunza made the most calls, more than 500, to family friend and political • consultant Marco Polo Cortes. His brothers, National City Mayor Nick Inzunza and San Diego City Councilman Ralph Inzunza Jr., were also frequently called, as was his father, former National City Councilman Ralph Inzunza Sr. •In those two years Inzunza made and received more than 1,600 calls between 10 p.m. and 5 a.m. – nearly one-third of them after midnight •There were calls to Tijuana, Mexicali, •Miami, New York, Las Vegas and Wisconsin, and numerous calls to home and cell phone numbers in the Los Angeles area. •Dozens of calls were made on holidays including Christmas, Easter and Thanksgiving, and numerous calls on weekends and after working hours to businesses that were not school-related or blurb advertisers, •including movie theaters, restaurants, video rental stores, auto repair shops, music stores, hotels and nightclubs. Page 186 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 187 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Next Time Micheal Inzunza chase you for a Photo op ask him Regarding Micheal Inzunza •Racist Incident at Catholic School Mater Dei Hight School that according to documents resulted in Micheal Inzunza Been suspended then Placed on leave then NEVER EVER rehire •CALL IT WHAT YOU WANT BUT I WOULD CALL IT GETTING FIRE •Behavior at Various Locations and Dates •I have seen Micheal Inzunza psychotic or erratic behavior displayed by Micheal Inzunza at different places and times. It would be appropriate to ask him about these instances. •Violent Aggressive Behavior •Ask Micheal Inzunza about the public violent and aggressive behavior he exhibited toward an elderly lady outside City Hall. •Verbal Attack on an Elderly Gentleman •Ask Micheal Inzunza's about the verbal attack on an elderly gentleman that occurred after the Chula Vista City Attorney Albondigas presentation. •Ask Micheal Inzunza about his Psychotic Lunatic performance on June 26, 2025, in during • a Chula Vista Democratic Club meeting Page 188 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda NATIONAL SECURITY The 'OK' Hand Gesture Is Now Listed As A Symbol Of Hate and White Supremacy SEPTEMBER 26, 20194:27 PM ET Michel Inzunza, You suspended an African American Kid and called him a PUNK because of his hair. Then you pose for picture with Students displaying a White Supremacy sign is that what you permit and teach the young minds? Let me remind you, “you are Mexican American” Page 189 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda implementing programs to improve residents’ quality of life To me it seem that is another lie Inzunza Your hand gestures could be interpreted as intimidation to an Elderly person INZUNZA SHAME ON YOU Page 190 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda v . 0 0 5 P a g e | 1 April 21, 2026 ITEM TITLE Annual Military Equipment Report: Accept the Annual AB 481 Military Equipment Report, Review and Renew Ordinance No. 3549, and Amend the Chula Vista Police Department Military Equipment Policy Report Number: 26-0117 Location: No specific geographic location Department: Police G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended Action Conduct a public hearing and adopt a resolution: (A) accepting the 2025 Annual AB 481 Military Equipment Report, (B) renewing Ordinance No. 3549, and (C) amending Chula Vista Police Department Military Equipment Policy 714. SUMMARY California Assembly Bill 481 requires law enforcement agencies to obtain approval of a military equipment use policy from their governing body and to submit an annual military equipment report. The governing body must annually review the report, determine whether each type of mili tary equipment identified complies with the standards for approval set forth in Government Code section 7071(d), and vote on whether to renew the policy. On May 3, 2022, City Council adopted Ordinance No. 3520, approving Chula Vista Police Department Military Equipment Policy 714. In April 2023, City Council adopted Ordinance No. 3549, amending that policy. The Police Department now submits the 2025 Annual Military Equipment Report in accordance with Government Code section 7072 and requests that the City Council review Ordinance No. 3549, consider its renewal, and approve amendments to Military Equipment Policy 714. Page 191 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 2 ENVIRONMENTAL REVIEW The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA), and it has been determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. COMMUNITY ENGAGEMENT The Police Department is committed to community engagement and to maintaining transparency in the use of military equipment. Consistent with that commitment, the 2025 Annual Military Equipment Repor t has been available for public review on the Police Department website since March 12, 2026. On April 2, 2026, the Police Department held a community engagement meeting at the Chula Vista Police Department, where members of the public were able to review the report and ask questions regarding the funding, acquisition, and use of military equipment. Members of the public will have an opportunity to provide additional comment during the City Council public hearing. The Police Department has also scheduled a community engagement meeting in City Council Chambers for April 29, 2026, within 30 days following submission of the report to the City Council, as required by Assembly Bill 481. (Gov. Code § 7072(b).) The meeting will be publicized on the Police Department website and social media accounts. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION RELEVANT LAW On September 30, 2021, California Governor Gavin Newsom approved Assembly Bill 481 (AB 481), codified in Government Code sections 7070 through 7075. AB 481 requires law enforcement agencies to obtain approval of a military equipment use policy from their governing body prior to acquiring, deploying, using, funding, or contracting for military equipment. Once a policy has been adopted, the agency must submit an annual military equipment report to the governing body for each type of approved military equipment and make the report available on its website. The annual military equipment report required by Government Code section 7072 must c ontain the following information for each type of military equipment: (1) A summary of how the military equipment was used and the purpose of its use. (2) A summary of any complaints or concerns received concerning the military equipment. Page 192 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 3 (3) The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. (4) The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report. (5) The quantity possessed for each type of military equipment. (6) If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment. In addition, within 30 days after submitting the annual report, the law enforcement agency must hold at least one well-publicized and conveniently located community engagement meeting at which the public may discuss and ask questions regarding the report and the law enforcement agency’s funding, acquisition, and use of military equipment. The governing body must annually review the annual report regarding acquisition and use of military equipment and determine whether the equipment identified complies with the standards for approval set forth in Government Code section 7071(d). Based on that review, the governing body must vote on whether to renew or modify the previously approved policy. If the governing body determines that a type of military equipment does not meet those standards, it may disapprove of continued authorization for that type of equipment or require modifications to the policy to address the deficiency. Government Code section 7071(d) establishes the standards for approval. The governing body must determine that: (A) The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety. (B) The proposed military equipment use policy will safeguard the public’s welfare, safety, civil rights, and civil liberties. (C) If purchasing the equipment, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety. (D) Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance. CHULA VISTA POLICE DEPARTMENT COMPLIANCE AND REPORTING On May 3, 2022, City Council adopted Ordinance No. 3520, approving the Chula Vista Police Department Military Equipment Policy (“Policy 714”), after determining it satisfied the standards set forth in Government Code section 7071(d). Policy 714 governs the Police Department’s use of military equipment. It identifies each type of equipment, including quantity, capabilities, expected lifespan, and manufacturer description, and specifies the purposes and authorized uses for each item. The policy outlines fiscal impacts, including acquisition and annual maintenance costs, and establishes the legal and procedural requirements governing Page 193 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 4 use, including required training to ensure protection of the public’s welfare, safety, civil rights, and civil liberties. It further requires compliance, sets forth enforcement mechanisms and sanctions for violations, and establishes procedures for receiving and responding in a timely manner to public complaints, concerns, and questions. In April 2023, City Council adopted Ordinance No. 3549, amending Policy 714 to add equipment descriptions for additional unmanned aircraft and specialized firearms, to delete equipment no longer in use, and to clarify that the Police Chief is authorized to order replacement types of equipment authorized in the policy. In April 2025, the City Council conducted its most recent annual review and determined that the equipment identified in the 2024 Annual Military Equipment Report complied with the standards set forth in Government Code section 7071(d). The proposed amendments to Policy 714 would further clarify procurement authority by allowing, under rare and exigent circumstances, the City Manager or designee to approve the purchase of replacement supplies for previously authorized equipment to maintain operational readiness. The Police Department submits this 2025 Annual Military Equipment Report (“Report”) in compliance with AB 481 (Attachment 4). The Report provides all information required by Government Code section 7072 , including a summary of how the equipment was used, whether any complaints were received, whether any violations occurred, and the fiscal impacts associated with such equipment, including the total annual costs for each type of equipment, the quantity possessed for each type of equipment, and whether the Police Department intends to acquire additional equipment in the next year. Based on the information contained in the Report and Policy 714, the Police Department maintains that the equipment identified in the Report continues to satisfy the standards for approval set forth in Government Code section 7071(d). The equipment remains necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety. Policy 714 continues to safeguard the public’s welfare, safety, civil rights, and civil liberties by establishing clear standards governing the use and oversight of such equipment. To the extent such equipment has been purchased, the Department maintains that it is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety. As reflected in the 2025 Annual Military Equipment Report, prior use of the equipment complied with Policy 714, and no violations requiring corrective action were identified. The Police Department submits the 2025 Annual Military Equipment Report (Attachment 4) to City Council and requests approval of the proposed resolution accepting the Report, renewing Ordinance No. 3549, and approving amendments to Policy 714. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act. (Cal. Gov't Code § 87100, et seq.) Staff is not independently aware and has not been informed by any City Council member of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. Page 194 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 5 CURRENT-YEAR FISCAL IMPACT Approval of this item has no current-year fiscal impact. All costs related to the Military Equipment Policy are included in the fiscal year 2025-26 budget for the Police Department. ONGOING FISCAL IMPACT The Military Equipment Report identifies the inventory of military equipment. During the budget process, ongoing maintenance and repair costs for this equipment will continue to be incorporated into the proposed annual budget. If additional appropriations are required for, staff will return to City Council for approval. ATTACHMENTS 1. Ordinance No. 3549 2. CVPD Military Equipment Policy 714 (Redline) 3. CVPD Military Equipment Policy 714 (Clean) 4. CVPD 2025 Military Equipment Report Staff Contact: Acting Chief of Police Dan Peak Police Captain Scott Adkins Page 195 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE CHULA VISTA POLICE DEPARTMENT 2025 ANNUAL AB 481 MILITARY EQUIPMENT REPORT, RENEWING ORDINANCE NO. 3549, AND APPROVING AMENDMENTS TO MILITARY EQUIPMENT POLICY WHEREAS, on September 30, 2021, the Governor of the State of California approved AB 481, “Funding, Acquisition and Use of Military Equipment,” which is codified in Chapter 12.8 of the California Government Code, sections 7070 through 7075; and WHEREAS, AB 481 requires a law enforcement agency to obtain annual approval of a military equipment policy by its governing body in order to seek funding for, acquire, or use existing military equipment; and WHEREAS, AB 481 requires a law enforcement agency to develop a written policy that includes a description of each type of military equipment, its purpose and use, the fiscal impact of such equipment, the rules that govern use of such equipment, and the mechanisms in place to assure compliance with the policy; and WHEREAS, on May 3, 2022, the Chula Vista City Council reviewed the Chula Vista Police Department’s Military Equipment Policy, Policy 714 (“Policy 714”), determined it to be compliant with Government Code section 7071(d), and approved it via Ordinance No. 3520; and WHEREAS, on May 23, 2023, the Chula Vista City Council adopted Ordinance No. 3549, amending Policy 714; and WHEREAS, on April 9, 2024, the Chula Vista City Council reviewed the 2023 Annual Military Report and renewed Ordinance No. 3549; and WHEREAS, on April 15, 2025, the Chula Vista City Council reviewed the 2024 Annual Military Report and renewed Ordinance No. 3549. WHEREAS, the Police Department has submitted the 2025 Annual Military Equipment Report to the Chula Vista City Council in accordance with Government Code section 7072; and WHEREAS, the amendments to Policy 714 clarify procurement authority by allowing, under rare and exigent circumstances, the City Manager or designee to approve the purchas e of replacement supplies for previously authorized equipment to maintain operational readiness, as set forth in Exhibit 1 attached hereto and incorporated herein by this reference; and WHEREAS, the Chula Vista City Council has reviewed the 2025 Annual Military Equipment Report and considered the renewal of Ordinance No. 3549 and the adoption of amendments to Policy 714. Page 196 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Resolution No. Page 2 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it makes the following finding: the City Council has reviewed Ordinance No. 3549 in accordance with Government Code 7071(e) and determined that each type of military equipment identified in the 2025 Annual Military Equipment Report complies with the standards for approval set forth in Government Code section 7071(d). BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it accepts the 2025 Annual Military Equipment Report, renews Ordinance No. 3549, and adopts the amendments to Military Equipment Policy 714 as set forth in Exhibit 1 attached hereto and incorporated herein. Presented by Approved as to form by Dan Peak Marco A. Verdugo Acting Chief of Police City Attorney Page 197 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ORDINANCE NO. 3549 ORDINANCE OF THE CITY OF CHULA VISTA APPROVING THE AMENDED CHULA VISTA POLICE DEPARTMENT MILITARY EQUIPMENT USE POLICY, AUTHORIZING FUTURE AMENDMENTS TO THE POLICY BY RESOLUTION, AND MAKING FINDINGS REGARDING THE POLICY AND ANNUAL MILITARY EQUIPMENT REPORT WHEREAS, on September 30, 2021, the Governor of the State of California approved AB 481, "Funding, Acquisition and Use of Military Equipment,"which is codified in Chapter 12.8 of the California Government Code, Sections 7070 to 7075; and WHEREAS, AB 481 requires a law enforcement agency to obtain annual approval of a military equipment policy by its governing body in order to seek funding for, acquire new, or use existing military equipment; and WHEREAS, AB 481 requires a law enforcement agency to develop a written policy that includes a description of each type of military equipment, its purpose and use, the fiscal impact of such equipment, the rules that govern use of such equipment, and the mechanisms in place to assure compliance with the policy; and WHEREAS, on May 3, 2022, the Chula Vista City Council reviewed the Chula Vista Police Department's Military Equipment Policy, Policy 714, determined it to be compliant with Government Code 7071(d), and approved it via Ordinance No. 3520; and WHEREAS, AB 481 requires a law enforcement agency to submit an annual report to the governing body for each type of military equipment approved in the written policy; and WHEREAS, AB 481 requires the governing body to review the annual acquisition and use of military equipment, as specified in the report,and to determine whether the equipment identified in the report complied with the standards set forth in Government Code 7071(d); and WHEREAS,AB 481 additionally requires the governing body to vote annually on whether to renew or modify the military equipment policy previously approved; and WHEREAS, on April 25, 2023, the Chula Vista Police Department submitted its 2022 annual military equipment report to the Chula Vista City Council; and WHEREAS, on April 25, 2023, the Chula Vista City Council reviewed the annual acquisition and use of military equipment and considered whether to renew or modify Policy 714, including consideration of a proposed amendment to Policy 714 to include additional equipment descriptions under the unmanned aircraft and specialized firearm type categories, to delete equipment no longer in use, and to confirm that the Police Chief is authorized to order replacements of the types of equipment authorized in the policy, as well as additional equipment of the same type; and Page 198 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 Ordinance No. 3549 Page No. 2 WHEREAS, the City Council desires to specify that future amendments to the Military Equipment Policy may be authorized by Resolution of the City Council. NOW, THEREFORE, the City Council of the City of Chula Vista does ordain as follows: Section I. Findings A. The City Council of the City of Chula Vista hereby finds as follows: 1. The military equipment reflected in the amended Chula Vista Police Department Military Equipment Policy, attached as Exhibit 1, is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety. 2. The amended Chula Vista Police Department Military Use Policy will safeguard the public's welfare, safety, civil rights, and civil liberties. 3. Purchased equipment identified in the amended Chula Vista Police Department Military Equipment Policy is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety. 4. Prior military equipment use complied with the Chula Vista Police Department Military Equipment Policy that was in effect at the time. B. The City Council of the City of Chula Vista hereby finds that each type of equipment identified in the Chula Vista Police Department's 2022 annual military equipment report complies with the standards of approval set forth in Government Code 7071(d). Section II. Action A. The City Council of the City of Chula Vista hereby approves the amended Chula Vista Police Department Military Equipment Policy, Policy 714, as reflected in Exhibit 1, in accordance with Government Code sections 7071(a) and 7071€. Future amendments to the Chula Vista Police Department Military Equipment Policy, Policy 714, may be authorized by Resolution of the City Council of the City of Chula Vista B. . Section III. Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity,unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Page 199 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 Ordinance No. 3549 Page No. 3 Section IV. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section V. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section V. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. SIGNATURES ON THE FOLLOWING PAGE] Page 200 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 Ordinance No. 3549 Page No. 4 Presented by Approved as to form E DocuS igned : DocuSigned by: 9251 By• EFB949DC9B5747E... Roxana Kennedy Jill D.S. Maland Chief of Police Lounsbery Ferguson Altona& Peak Acting City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 23rd day of May 2023, by the following vote: AYES: Councilmembers: Cardenas, Chavez, Gonzalez, Preciado, and McCann NAYS: Councilmembers: None ABSENT: Councilmembers: None DocuSigned by: 72n4FC23RQ0R473 John McCann, Mayor ATTEST: DocuSigned by: 3074D104EAF342E... Kerry K. Bigelow, MMC, City Clerk STATE OF CALIFORNIA COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Ordinance No. 3549 had its first reading at a regular meeting held on the 25th day of April 2023, and its second reading and adoption at a regular meeting of said City Council held on the 23rd day of May 2023 and was duly published in summary form in accordance with the requirements of state law and the City Charter. DocuSigned by: 5/31/2023E1-, 3074D104EAF342E Dated Kerty K. Bigelow, MMC, City Clerk Page 201 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 Chula Vista Police Department Chula Vista PD Policy Manual Military Equipment 714.1 PURPOSE AND SCOPE This Department policy establishes guidelines for the use, training, approval, and procurement of existing military equipment and future military equipment acquisitions in accordance with California Assembly Bill 481 (AB 481), codified in California Government Code § 7070-7075. Additionally, this policy outlines the fiscal impact and specific descriptions of existing military equipment within the Department's inventory. 714.1.1 BACKGROUND On September 30, 2021, the Governor of the State of California approved AB 481 requiring law enforcement agencies to obtain approval of a military equipment policy by the applicable governing body (The Chula Vista City Council). The Department is required to seek approval of this military equipment use policy from the governing body at a regular open meeting prior to the Department taking certain actions relating to the funding, acquisition, or use of military equipment, as defined. The bill allows the governing body to approve the policy only if it determines that the military equipment meets specified standards. The policy is subject to annual review by the governing body to determine whether, based on an annual military equipment report, the standards set forth in the approving policy have been met. The governing body may renew the authorizing policy, disapprove authorization for particular military equipment where standards have not been met, or require modifications to this military equipment use policy to address any non-compliance with standards. Finally, the bill requires publication of this military equipment use policy and the annual military equipment report on the Department's website. The military equipment use policy must be posted on the website at least 30 days prior to the City Council meeting. 714.1.2 DEFINITIONS Pursuant to AB 481, the following definitions are applicable only to the Department's current military equipment inventory and potential future military equipment acquisitions for operational needs. (For a detailed list, refer to California Government Code § 7070, for "military equipment" as defined within the assembly bill.) Governing body- The Chula Vista City Council. Military equipment - Items defined by California Government Code § 7070(c)(1) through (c)(16). The definition includes but is not limited to the following: Unmanned, remotely piloted, powered aerial or ground vehicles. Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. However, police versions of standard consumer vehicles are specifically excluded from this definition. High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. Copyright Lexipol, LLC[DATE TO BE INSERTED] All Military Equipment- 1 Rights Reserved.Published with permission by Chula Vista Police Page 202 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 Chula Vista Police Department Chula Vista PD Policy Manual Military Equipment Tracked armored vehicles that provide ballistic protection to their occupants. Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. Weaponized aircraft, vessels, or vehicles of any kind. (Note that none of the Chula Vista Police Department's drones are weaponized). Battering rams, slugs, and breaching apparatus that are explosive in nature. However, items designed to remove a lock, such as bolt cutters, or a handheld ram designed to be operated by one person, are specifically excluded from this definition. Firearms and ammunition of.50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition. Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons under California Penal Code § 30510 and California Penal Code § 30515 with the exception of standard issue service weapons and ammunition of less than .50 caliber that are issued to sworn members. Any firearm or firearm accessory that is designed to launch explosive projectiles. Noise-flash diversionary devices and explosive breaching tools. Munitions containing tear gas or OC, excluding standard service-issued handheld pepper spray. Taser ® Shockwave, microwave weapons, water cannons, and long-range acoustic devices (LRADs). Kinetic energy weapons and munitions. Any other equipment as determined by a governing body or a state agency to require additional oversight. Military equipment use policy - refers to this Department policy and means a publicly released, written document governing the use of military equipment by the Department that addresses, at a minimum, all of the following: A description of each type of military equipment, the quantity sought, its capabilities, expected lifespan, and product descriptions from the manufacturer of the military equipment. The purposes and authorized uses for which the Department proposes to use each type of military equipment. The fiscal impact of each type of military equipment, including the initial costs of obtaining the equipment and estimated annual costs of maintaining the equipment. The legal and procedural rules that govern each authorized use. The training, including any course required by the Commission on Peace Officer Standards and Training, that must be completed before any sworn member is authorized to use each specific type of military equipment to ensure the full protection of the public's welfare, safety, civil rights, and civil liberties and full adherence to the military equipment use policy. Copyright Lexipol,LLC[DATE TO BE INSERTED]All Military Equipment-2 Rights Reserved.Published wit h permission by Chula Vista Police Page 203 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 Chula Vista Police Department Chula Vista PD Policy Manual Military Equipment The mechanisms to ensure compliance with the military equipment use policy, including which independent persons or entities have oversight authority, and, if applicable, what legally enforceable sanctions are put in place for violations of the policy. The procedures by which members of the public may register complaints or concerns or submit questions about the use of each specific type of military equipment, and how the Department will ensure that each complaint, concern, or question receives a response in a timely manner. Law enforcement agency means any of the following: 1. A police department, including the police department of a transit agency, school district, or any campus of the University of California, the California State University, or California Community Colleges. 2. A sheriff's department. 3. A district attorney's office. 4. A county probation office. 714.1.3 MILITARY EQUIPMENT USAGE GUIDELINES The Chula Vista Police Department retains and employs a wide variety of equipment, some of which is defined as military equipment by California Government Code § 7070, to assist in maintaining public safety by providing the highest quality police services to our community. Military equipment shall only be used by a Department employee only after applicable training, including any course required by the Commission on Peace Officer Standards and Training POST), has been completed, unless exigent circumstances arise. Any military equipment acquired and authorized by the Department must be necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety and be reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety (California Government Code § 7071 (d)(1)(A)(C)). Additionally, it is the policy of the Chula Vista Police Department that its military equipment be used to safeguard the public's welfare, safety, civil rights, and civil liberties (California Government Code § 7071(d)(1)(B)). The Chula Vista Police Department recognizes that critical incidents are unpredictable and can be very dynamic in nature. A variety of military equipment options can greatly assist incident commanders, officers, and specific units in bringing those incidents to a swift resolution in a safe manner. While this procedure is wide-ranging, it is not all inclusive. There may be instances wherein unpredictable critical incidents demand the need for incident commanders to authorize military equipment to be used in a manner not outlined within this policy. In scrutinizing those particular instances, the judgment of the incident commander influenced by the totality of the circumstances, public safety, officer safety, civil rights, and information available at the time will be used. It is incumbent upon incident commanders, supervisors, individual officers, and specific Copyright Lexipol,LLC[DATE TO BE INSERTED]All Military Equipment-3 Rights Reserved.Published wit h permission by Chula Vista Police Page 204 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 Chula Vista Police Department Chula Vista PD Policy Manual Military Equipment units to recognize the particular circumstances wherein military equipment should be employed to enhance the safety of the public and officers. 714.2 POLICY It is the policy of the Chula Vista Police Department that members of this Department comply with the provisions of California Government Code § 7071 with respect to military equipment. 714.3 MILITARY EQUIPMENT COORDINATOR The Professional Standards Unit manager or their designee will act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to: 1. Acting as liaison to the governing body for matters related to the requirements of this policy. 2. Identifying the Chula Vista Police Department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body. 3. Conducting an annual inventory of all military equipment at least annually. 4. Preparing for, scheduling, and/or coordinating the annual community engagement meeting to include: a) Ensuring the details of the meeting are publicized. b) Preparing for public questions regarding the Department's funding, acquisition, and use of the equipment. 5. Preparing the annual military equipment report for submission to the Chief of Police, and ensuring that the report is made available on the Department's website (California Government Code § 7072). 6. Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner. 714.4 MILITARY EQUIPMENT INVENTORY The following constitutes a list of qualifying equipment for the Chula Vista Police Department: See attachment A for the Chula Vista Police Department military equipment list) 714.5 APPROVAL The Chief of Police or their designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or their designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the Department website at least 30 days prior to any regular meeting of the City Council concerning the military equipment at issue (California Government Code § 7071). The military equipment policy must be approved by the governing body prior to engaging in any of the following (California Government Code § 7071): Copyright Lexipol,LLC[DATE TO BE INSERTED]All Military Equipment-4 Rights Reserved.Published wit h permission by Chula Vista Police Page 205 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 Chula Vista Police Department Chula Vista PD Policy Manual Military Equipment 1. Requesting military equipment made available pursuant to 10 USC § 2576a. This section is also commonly referred to as the Defense Logistics Agency 1033 Program. The Chula Vista Police Department does not participate in this program, 2. Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers. 3. Acquiring military equipment either permanently or temporarily, including by borrowing or leasing. 4. Collaborating with another law enforcement agency in the deployment or other use of military equipment within the territorial jurisdiction of the governing body. 5. Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body. 6. Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of, military equipment. 7. Acquiring military equipment through any other means. 714.6 ANNUAL MILITARY EQUIPMENT REPORT Upon approval of a military equipment policy, the Chief of Police or their designee shall submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (California Government Code § 7072). The Chief of Police or their designee shall also make each annual military equipment report publicly available on the Chula Vista Police Department website for as long as the military equipment is available for use. The report shall include all information required by California Government Code § 7072 for the preceding calendar year for each type of military equipment in the Chula Vista Police Department inventory. The military equipment report shall, at a minimum, include the following information from the immediate previous calendar year for each type of military equipment: 1. A summary of how the military equipment was used and the purpose for its use. 2. A summary of any complaints or concerns received concerning the military equipment. 3. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response, consistent with state law and employee privacy restrictions. 4. The total annual cost for each type of military equipment. 5. The quantity possessed for each type of military equipment. 6. If the Department intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment. Copyright Lexipol,LLC[DATE TO BE INSERTED]All Military Equipment-5 Rights Reserved.Published wit h permission by Chula Vista Police Page 206 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 Chula Vista Police Department Chula Vista PD Policy Manual Military Equipment The governing body will determine, based on the annual military equipment report, whether each type of military equipment identified in the report has complied with the standards for approval as set forth by AB 481. If the governing body determines that a type of military equipment identified in the annual military equipment report has not complied with the standards as set forth by AB 481, it may either disapprove a renewal of the authorization for that type of military equipment or require modifications to this military equipment use procedure in a manner that will resolve lack of compliance. 714.7 COMMUNITY ENGAGEMENT Within 30 days of submitting and publicly releasing the annual military equipment report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment. (California Government Code § 7072(b)). 714.8 COORDINATION WITH OTHER JURISDICTIONS On occasion, the Department may be required to assist other law enforcement agencies in a formal Law Enforcement Mutual Aid Request (LEMA) or support with day to day operational collaboration (i.e. pursuits, investigative unit assistance, joint law enforcement operations, etc.). The specific guidance and requirements for mutual aid is governed under PDM 352 - Outside Agency Assistance. In certain mutual aid or operational collaboration circumstances, it may be necessary for sworn Department members to utilize military equipment in order to fulfill an assigned mission (i.e. civil unrest, SWAT requests, barricaded suspects in a vehicle, etc.). When sworn Department members utilize military equipment in instances of mutual aid or law enforcement collaboration, the following shall apply: 1. Department members are required to adhere to the Department's Military Equipment policy and all policies and procedures outlined within the Chula Vista Police Department's Policy and Procedures Manual, regardless of operational jurisdiction. 2. Should the Chula Vista Police Department request mutual aid from another law enforcement agency within the City of Chula Vista and military equipment is required during the course of the response, the following shall apply: a) The Chula Vista Police Department shall remain in charge of the overall incident command. b) The Incident Commander or their designee shall brief the supervisor from the assisting agency and inform them of the mission, enforcement posture, and any pertinent information related to the incident. c) The assisting agency will be expected to adhere to their respective policies and procedures, particularly those governing the use of military equipment. Copyright Lexipol,LLC[DATE TO BE INSERTED]All Military Equipment-6 Rights Reserved.Published wit h permission by Chula Vista Police Page 207 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 Chula Vista Police Department Chula Vista PD Policy Manual Military Equipment d) If the Incident Commander is informed of or witnesses the utilization of military equipment by an assisting agency inconsistent with the guidelines set forth in this procedure, the Incident Commander may elect to cancel the request for mutual aid or re-assign the assisting agency to a different support mission. 714.9 MILITARY EQUIPMENT USAGE ACCOUNTABILITY 1. The use of military equipment is subject to individual Department policies and procedures. It is incumbent upon incident commanders, supervisors, and individual officers to recognize the specific circumstances wherein military equipment should be employed to enhance the safety of the public and officers and to bring an incident to a safe resolution. 2. Department members are bound to adhere to Department policies and procedures, in addition to state and local laws and ordinances when employing the use of the military equipment at any time. Violations of the law or Department Policies or Procedures may result in criminal or administrative investigations and/or actions. 3. Administrative investigations concerning complaints related to military equipment will be conducted in accordance with PDM 1019 - Personnel Complaints. 714.10 MILITARY EQUIPMENT MAINTENANCE AND INVENTORY All military equipment should be properly maintained and stored as set forth by Department policies and procedures or in the absence of that, by manufacturer guidelines. 714.11 TESTING AND EVALUATION OF MILITARY EQUIPMENT FOR POTENTIAL FUTURE ACQUISITION While the Department's current inventory of military equipment is wide ranging and versatile, advancements in technology, tactics, and operational effectiveness may necessitate the expansion or complete replacement of certain items of military equipment in the current catalog. From time to time, certain equipment vendors and/or manufacturers may loan certain military equipment items to the Department for testing by various units to conduct assessments involving feasibility of use, cost analysis, effectiveness, and training efficacy. This process is commonly referred to as "Testing and Evaluation" (T& E). During the testing and evaluation process, various units and/or subject matter experts conduct assessments of the equipment being tested and opine the viability of whether or not an item of military equipment should be considered for Department use. Military equipment that is being tested shall not be used operationally without approval from the Chief of Police or their designee. The following limitations shall apply should the Department receive military equipment for the testing and evaluation process: Copyright Lexipol,LLC[DATE TO BE INSERTED]All Military Equipment-7 Rights Reserved.Published wit h permission by Chula Vista Police Page 208 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 Chula Vista Police Department Chula Vista PD Policy Manual Military Equipment 1. Only similar military equipment within the Department's current military equipment inventory may be used for Testing and Evaluation. Examples might include but are not limited to: a) Similar firearms by a manufacturer other than those approved in the current inventory b) Similar UAS platforms featuring a different make and/or model other than those approved in the current inventory. c) Similar diversionary devices or chemical agents featuring a different make and/ or model other than those in the current inventory, etc. 2. Military equipment that is not similar to the Department's current military equipment inventory must be approved through the governing body and Chief of Police or their designee, prior to the acquisition for the testing and evaluation process. Examples include but are not limited to: a) New military equipment technology not currently approved or currently in use by the Department. b) Firearms as defined under military equipment that operate with a different weapons platform other than what is approved or currently in use by the Department (i.e. bullpup platform, higher caliber weapon than what is in the current inventory, etc.). Military equipment items that have been assessed and recommended for final approval after undergoing the testing and evaluation process must be approved by the governing body and the Chief of the Police or their designee prior to be being formally acquired for Department inventory and operational use. 714.12 MILITARY EQUIPMENT COMPLAINTS AND INQUIRIES In some instances, the application and use of military equipment can cause questions and/ or concerns for members of the community. It is of vital importance that community members' questions regarding the application and use of military equipment are addressed. The Chula Vista Police Department is committed to full and fair investigation of citizen complaints. As such, the Department has sound internal procedures for thorough and impartial investigations of citizen complaints. Resolving complaints in a fair, impartial, and expeditious manner will ensure the consistent high level of integrity and efficiency maintained by the Department. 1. Complaints directly related to the application or use of military equipment shall be handled in accordance with PDM 1019 - Personnel Complaints. Individuals from the public may file complaints in any form, including in writing, by email, in person, or by telephone. 2. The Professional Standards Unit will maintain statistical data concerning the number and types of complaints regarding military equipment. Copyright Lexipol,LLC[DATE TO BE INSERTED]All Military Equipment-8 Rights Reserved.Published wit h permission by Chula Vista Police Page 209 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 Chula Vista Police Department Chula Vista PD Policy Manual Military Equipment 3. The Chula Vista Police Department values open communication and transparency. Community questions and/or concerns regarding the application and use of specified military equipment should be addressed in the following manner: a) Via the Department's website (in the "Contact Us" section), the public can communicate specific military equipment related questions, comments, or concerns to the Department. The Department will respond to the submissions at least quarterly. b) At pre-determined community engagement meetings related to military equipment. c) At City Council meetings related to military equipment. d) In all other circumstances, the public should be directed to the Department Military Equipment policy and Annual Military Equipment Report available on the Chula Vista Police Department website. 714.13 MAINTENANCE OF MILITARY EQUIPMENT SUPPLY LEVELS The Police Chief may approve the purchase of supplies to replace the types of equipment authorized by this policy, as well as additional equipment of the same type. The Military Equipment Coordinator or their designee shall report these purchases via the annual military equipment report submitted in accordance with California Government Code section 7072. Copyright Lexipol,LLC[DATE TO BE INSERTED]All Military Equipment-9 Rights Reserved.Published wit h permission by Chula Vista Police Page 210 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) NOTE: The inventory of certain items of consumable military equipment(i.e. ammunition,diversionary devices, chemical agents,etc.)can fluctuate throughout the year.This can be due to operational usage,training usage,operational wear,and/or manufacturer recommended replacement guidelines.While the Department strives to provide accuracy in its inventory reporting as prescribed by law,this attachment reflects approximations of certain consumable items of military equipment at the time of this policy's publication.] A. Unmanned Remotely Piloted, Powered Aerial or Ground Vehicles 1. Unmanned Aircraft System (UAS): An unmanned aircraft along with the associated equipment necessary to control it remotely. Description and capabilities: a. DJI MAVIC MINI 2, Miniature UAS that weighs approx.. 249 grams and can record video and audio with approximately 30 minutes of flight time. b. DJI INSPIRE 2, UAS with a 4K camera, weighs approx. 4001 grams and has video recording capabilities, approx. 27 minutes of flight time. c. DJI MAVIC 2 ENTERPRISE, UAS with a HD camera, audible speaker, and light, weighs approx. 900 grams. Has video recording capabilities, approx. 31 minutes of flight time. d. DJI MAVIC 2 ENTERPRISE ADVANCED, UAS with a 4K thermal camera, audible speaker, and light. Weighs approx. 1100 grams, approx. 31 minutes of flight time. e. DJI M300 with HT20, UAS that has 45 minutes of flight time, in all weather, has an IR camera, zoom camera and light. Weighs approx. 6300 grams. Has video recording capabilities. f. DJI M210v2 with z30, UAS that has 35 minutes of flight time, in all weather, has an IR camera, zoom camera and light. Weighs approx. 6140 grams. Has video recording capabilities. g. DJI PHANTOM 4, UAS with a 4K camera, has video recording capabilities. Weighs approx. 1380 grams. h. DJI MAVIC 2 ZOOM, UAS with a 4K camera, weighs approx. 905 grams. Has video recording capabilities, approx. 31 minutes of flight time. i. DJI MAVIC PRO, UAS with a 4K camera, weighs approx. 743 grams. Has video recording capabilities, approx. 27 minutes of flight time. j. SKYDIO 2, UAS with 4K camera, weighs approx. 775 grams. Has video recording capabilities, approx. 23 minutes of flight time. 1 Page 211 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) k. SKYDIO X2 (Color/Thermal), UAS with 4K and thermal camera, weighs approx. 1325 grams. Has video recording capabilities, approx. 35 minutes of flight time. 1. PARROT ANAFI, UAS with 4K thermal camera, weighs approx. 320 grams, has video recording capabilities, approx. 25 minutes of flight time. m. BRINC LEMUR S,UAS with 1080p HD and IR camera, weighs 1088 grams. Has video recording capabilities, approx. 31 minutes of flight time. n. DJI AVATA,UAS with 4K camera, weighs approx. 410 grams. Has video recording capabilities, approx. 18 minutes of flight time. Purpose To be deployed when its view would assist officers or incident commanders with the following situations, which include but are not limited to: Major collision investigations Search for missing or wanted persons Fires Major incidents Calls for service Natural disaster management Crime scene photography SWAT, tactical or other public safety and life preservation missions In response to specific requests from local, state, or federal fire authorities for fire response and/or prevention Authorized Use Only assigned UAS operators who have completed the required training shall be permitted to operate any of the Unmanned Aerial Systems. Expected Lifespan All UAS equipment, 3- 5 years. 2 Page 212 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) Quantity, Cost, and Fiscal Impact (with photos) Unmanned Remotely Piloted, Powered Aerial or Ground Vehicles Unmanned Aircraft Systems (UAS) Equipment Name and Model/Manufacturer Quantity Initial Fiscal Impact(FY 22&23) Cost Approx.for maintenance and Per Unit) repair) DJI MAVIC MINI 2 2 400 $50,000 Maintenance and battery replacement cost for the entire r drone fleet. (Includes all UAS equipment). i jun" DJI INSPIRE 2 1 3299 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment). o r DJI MAVIC 2 ENTERPRISE 4 2399 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment). DJI MAVIC 2 ENTERPRISE ADVANCED 1 6500 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment). 3 Page 213 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) DJI M300 with H2OT 7 25,000 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS a equipment). DJI M210v2 with z30 2 32,000 $50,000 Maintenance and battery replacement cost for the entire drone fleet(Includes all UAS e ment . DJI PHANTOM 4 1 1600 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment). 10 DJI MAVIC 2 ZOOM 1 1999 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment). 4 Page 214 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) DJI MAVIC PRO 1 1289 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment). r1f b rrcar SKYDIO 2 4 999 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS y equipment. i SKYDIO X2(Color/Thermal 2 14,499 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment). PARROT ANAF1 1 2000 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment). 5 Page 215 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) BRINC LEMUR S 2 22,996 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment). IIIIIIII°II DJI AVATA 2 1,388 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment). Training All Department UAS operators are licensed by the Federal Aviation Administration for UAS Operation. In addition, each operator must attend monthly ongoing training. Legal and Procedural Rules Use is established under PDM 613 —UAS Operations, and the FAA Regulation 14 CFR Part 107. It is the policy of the CVPD to utilize UAS only for official law enforcement purposes, and in a manner that respects the privacy of our community, pursuant to the City's privacy and technology policies, along with State and Federal Law. 2. Robot: An unmanned ground-based machine along with the associated equipment necessary to control it remotely. Description and capabilities: a. ROBOTEX AVATAR HI, the Robotex Avatar III is a heavy-duty robot. It has stair climbing ability and an arm capable of remote manipulation. The Avatar III also offers multiple communications options, a chassis and manipulator that allow for accessories and tool combinations. The robot is primarily deployed as a tool for the SWAT team, however, it can be 6 Page 216 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) used for other authorized patrol functions. It operates as a de-escalation tool in a variety of capacities (see Purpose section below). Pu ose To be deployed when its use would assist officers or incident commanders with the following situations, which include but are not limited to: Remotely gain visual/audio data Deliver phone during hostage/barricaded subject negotiations Open doors Disrupt suspicious/dangerous packages Training/authorized public exhibition Authorized Use Only sworn personnel who have been trained on the robot's function, use, and capabilities shall be permitted to operate the robot. Expected Lifespan Robot and arm attachment, 8-10 years. Quantity, Cost, and Fiscal Impact Unmanned Remotely Piloted, Powered Aerial or Ground Vehicles Robots Equipment Name and Model/Manufacturer Quantity Initial Cost Fiscal Impact(FY 22&23) Per Unit) Approx.for maintenance and repair) ROBOTEX AVATAR IIT 1 340,793.56 $1300.54(Battery and misc. repair) 7 Page 217 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) Training All robot operators must complete in-house training in the use, function, and deployment of the robot by trained robot operators. Legal and Procedural Rules The use of the robot is for official law enforcement purposes only, and in a manner that respects the privacy of our community, pursuant to the City's privacy and technology policies, along with State and Federal Law. B. Command and Control Vehicles 1. Mobile Command Post (CP): A mobile office that provides shelter, police equipment, access to Police Department computer systems, and restroom facilities on extended events. Description and capabilities: a. Freightliner M2-106, The CP can also be utilized for SWAT/CNT and other critical incidents, preplanned large events, searching for missing persons, natural disasters, and community events. Purpose To be used based on the specific circumstances of a given critical incident, large event, natural disaster, or community event that is taking place. Authorized Use The CP shall be operated by officers trained in their deployment and in a manner consistent with State Law regarding the operation of motor vehicles. Furthermore, only officers who have completed the California Class B Commercial driver training provided by the Department and properly licensed will be permitted to drive the CP. Expected Lifespan 20-year lifespan on chassis and 10-year warranty on vehicle structure. 8 Page 218 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) Quantity, Cost, and Fiscal Impact Command and Control Vehicles Equipment Name and Model/ Quantity Initial Cost Fiscal Impact(FY 22&23) Manufacturer Per Unit)Approx.for maintenance and repair) Freightliner M2-106 1 778,000 2000 Mobile Command Post i qp Training All drivers shall receive training in the safe handling of the vehicle on a closed training course. Once the driver has shown competence in the vehicle handling, the driver will operate the vehicle throughout the City with an experienced driver. Drivers shall also undergo California Department of Motor Vehicles commercial vehicle testing. In addition, each driver shall attend bi-yearly training as authorized by the Department. Legal and Procedural Rules It is the policy of Department to use the CP only for official law enforcement purposes, and in accordance with State law regarding the operation of motor vehicles. 2. SWAT Equipment Truck: A mobile storage unit/preparation area that provides SWAT members access to equipment and uniforms during critical events. Description and capabilities: a. Freightliner M2 106 chassis (custom build), The SWAT equipment truck is used as a mobile storage unit and is deployed to critical incidents to provide SWAT team members rapid access to necessary equipment. PuTose To be used based on the specific circumstances of a given critical incident, large event, natural disaster, or community event that is taking place. Authorized use 9 Page 219 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) The equipment truck shall be used by officers trained in its deployment and in a manner consistent with Department training. Officers with a valid California Class C license may operate the equipment truck. Expected lifespan The Equipment Truck, 20-year lifespan on chassis, lifetime warranty on vehicle structure. Upgrades needed after 12 years of purchase to maintain IT systems. Quantity, Cost, and Fiscal Impact Command and Control Vehicles Equipment Name and Model/ Quantity Initial Cost Fiscal impact(FY 22&23) Manufacturer Per Unit) Approx.for maintenance and repair) Freightliner M2 106 chassis 1 406,286.24 7008 custom build) SWAT equipment truck d t II Training Drivers shall receive training in the safe handling of the vehicle by a Department-qualified driver. Once the driver has shown competence in vehicle handling, the driver may operate the vehicle for authorized use. Legal and Procedural Rules The equipment truck shall be deployed for authorized use and operated in accordance with California State Law regarding the operation of motor vehicles. C. Armored Personnel Carriers 1. Armored vehicle: Commercially produced wheeled armored vehicle utilized for law enforcement purposes. 10 Page 220 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) Description and capabilities: a. 2011 LENCO BEARCAT G2, The Lenco Bearcat, G2, is an armored vehicle that seats 10-12 personnel with an open floor plan that allows for safe rescue of injured citizens and officers. It can stop various projectiles, which provides greater safety to citizens and officers beyond the protection level of shield and personal body armor. Pul-pose To be used in response to critical incidents to enhance officer and community safety, improve scene containment and stabilization, and assist in resolving critical incidents. The vehicle may also be used during formal training or community demonstrations with approval from the Watch Commander, SWAT Commander, or a SWAT Team Leader. Authorized Use The use of armored vehicles shall only be authorized by a sworn supervisor or manager based on the specific circumstances of a given critical incident. Officers may deploy the armored vehicle during exigent circumstances, such as officer/citizen rescues, without prior approval. If deployed under exigent circumstances, a supervisor shall be notified as soon as practical. Armored vehicles shall only be used by officers trained in their deployment and in a manner consistent with Department training. Expected lifespan Lenco Bearcat model G2 —25 years. Quantity, Cost, and Fiscal Impact Armored Personnel Carriers Equipment Name and Model/ Quantity initial Cost Fiscal Impact(FY 22&23) Manufacturer Per Unit Approx.for maintenance and repair) 2011 LENCO BEARCAT G2 1 315,518.65 5000 hr H7ghyly/ry ir!d„nn i 11 Page 221 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) Training The driver shall receive training in the safe handling of the vehicle by a Department-qualified driver. Once the driver has shown competence in vehicle handling, the driver may operate the vehicle for authorized use. Legal and Procedural Rules All drivers/operators shall be sworn personnel and possess a valid class C driver's license. The vehicle shall be operated in accordance with State Law regarding the operation of motor vehicles. D. Specialty Impact Munition Weapons (SIM) and Associated Munitions 1. 40 MM Launchers and Munitions: 40 MM launchers are utilized by SWAT and Mobile Field Force (MFF)personnel as a less lethal tool to launch less lethal impact and chemical agent rounds. Description and capabilities: a. DEFENSE TECHNOLOGY, 40 MM TACTICAL 4-SHOT LAUNCHER#1440, the 40 MM Tactical 4-Shot Launcher is low-profile and lightweight, providing multi-shot capability in an easy to carry launcher. It features an adjustable Picatinny mounted front grip, and a unique direct-drive system to advance the magazine cylinder. It will launch a 40MM less lethal round up to 131 feet and is only authorized to be used by trained SWAT personnel. b. PENN ARMS, 40 MM SINGLE SHOT LAUNCHER#GSO490, the 40 MM Single Launcher is a tactical single shot launcher. It will fire standard 40 MM less lethal ammunition, up to 4.8 inches in cartridge length. It will launch a 40 MM less lethal round up to 131 feet and is only authorized to be used by trained SWAT and Mobile Field Force (MFF)personnel. c. DEFENSE TECHNOLOGY, FERRET 40 MM LIQUID BARRICADE PENETRATOR MUNITION #2262, a less lethal 40 MM round used to penetrate barriers, such as windows, hollow core doors, wallboard, and thin plywood. Upon impacting the barrier, the nose cone ruptures and instantaneously delivers a small chemical payload inside of a structure or vehicle. In a tactical deployment situation, the 40 MM Ferret is primarily used to dislodge barricaded subjects from confined areas. Its purpose is to minimize the risks to all parties through temporary discomfort, pain compliance, and/or incapacitation of potentially violent or dangerous subjects. 12 Page 222 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) Purpose To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Authorized Use Situations for use of the less lethal weapon systems may include, but are not limited to: Self-destructive, dangerous and/or combative individuals. Riot/crowd control and civil unrest incidents. Circumstances where a tactical advantage can be obtained. Potentially vicious animals. Training exercises or approved public exhibitions. Expected lifespan Defense Technology#1425 - 25 years Defense Technology#1440 - 15 years Penn Arms #GS4090 -No lifespan indicated by manufacturer Defense Technology Model 2262 Liquid Barricade Penetrator - 5 years Quantity, Cost, and Fiscal Impact Specialty Impact Munition Weapons (SIM) 40 MM Launchers Equipment Name and Model/Manufacturer Quantity Initial Cost Fiscal Impact(FY 22&23) Per Unit) (Approx.for maintenance and repair) DEFENSE TECHNOLOGY,40 MM TACTICAL 4-SHOT 1 1987.50 50(per unit) LAUNCHER#1440 PENN ARMS,40 MM SINGLE SHOT LAUNCHER 4 1000 50(per unit) 4GSO490 13 Page 223 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) Specialty Impact Munition Weapons (SIM) Projectiles DEFENSE TECHNOLOGY,FERRET 40 MM LIQUID 33 S19.85 Pending City Council BARRICADE PENETRATOR MUNITION#1262 Approval,purchase order in process fbr obtaining qty 50 of the newer version#2262 @ 24.60 each — $1,230. N-«arra Training Sworn members utilizing 40 MM less lethal chemical agents or impact rounds are trained in their use by POST certified less lethal or chemical agent instructors. SWAT and MFF personnel receive additional training annually. SWAT operators who utilize these munitions have successfully completed a POST approved chemical agent school, SWAT academy and/or have been trained in-house by POST certified chemical agent instructors. Legal and Procedural Rules Use is established under the CVPD PDM 308 - Control Devices and Techniques policy and PDM 300 - Use of Force policy. It is the policy of the CVPD to only utilize the less lethal Specialty Impact Munitions (SIMS) and associated munitions for official law enforcement purposes, and pursuant to State and Federal Law, including those regarding the use of force. 2. SIM barrel conversion kits and SIM training projectiles: A designated barrel or bolt used in a standard firearm or handgun that when fired only discharges specially designed SIM paint marking rounds. The conversion kits do not permit the weapon to fire standard ammunition. These are non-operational rounds and non-operational weapons systems. They are used for training purposes only. Description and capabilities: a. FORCE ON FORCE 5.56MM MARKER BOLT ASSEMBLIES, the bolt assembly includes a bolt carrier group that converts the AR-15/M4 rifle into effective weapons designed to fire force on force 5.56mm paint marker rounds and prevent the firing of lethal ammunition. These bolts are used for training only. b. SIMUNITION SIG SAUER P226 SIMUNITION CONVERSION KITS, the Simunition Conversion Kit includes a barrel and ramp that converts the Sig Sauer P226 Pistol into an effective training weapon designed to fire force on force 9mm marker rounds and prevent the firing of lethal ammunition. These conversion kits are used for training only. 14 Page 224 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) c. FORCE ON FORCE 5.56 MM PAINT MARKING ROUNDS, non-operational munition for training purposes only. Paint Marking round designed to be used with the SIM conversion kits during training exercises. These rounds are used for training only. d. FORCE ON FORCE 9MM PAINT MARKING ROUINDS, non-operational munition for training purposes only. Paint Marking round designed to be used with the SIM conversion kits during training exercises. These rounds are used for training only. Purpose These systems and munitions provide for realistic close quarters firearms training while allowing the shooter to visually assess shot placement and accuracy in force-on-force training scenarios. Authorized Use Rifle caliber SIMs (5.56mm) are used exclusively by SWAT for training purposes only. Pistol caliber SIMs (9mm) are used by SWAT and other sworn personnel for in-service training. Expected lifespan 5.56mm bolt assembly—Frequency of use. 5-year limited warranty 5.56mm SIM rounds—At least 5 years. 9mm barrel assembly—Frequency of use. 5-year limited warranty 9mm SIM rounds—At least 5 years. Quantity, Cost, and Fiscal Impact Specialty Impact Munition Weapon(SIM)barrel conversion kits and training projectiles FOR TRAINING ONLY FORCE ON FORCE 5.56MM 20 239 0 MARKER BOLT ASSEMBLIES 15 Page 225 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) SIMMUNITION SIG SAUER P226 16 205 0 SIMMUNITION CONVERSION KITS pP 1)V mMuw raa rrr wir FORCE ON FORCE 5.56 MM PAINT 13 cases 282 Pending City Council Approval,purchase order MARKING ROUNDS 6,500 rounds in process far obtaining 4 cases(500 rounds per total) case =2,000 rounds) @$295/case =$1,180. urN;sxY d FORCE ON FORCE 9MM PAINT 8 cases 236 0 MARKING ROUNDS 4000 rounds total) l Training Sworn personnel are given extensive firearms handling courses and weapons safety instruction to include the use of SIMs for training purposes. Legal and Procedural Rules These systems are for training purposes only. Users will wear protective gear or clothing and only operate the equipment in a controlled training environment and when safe to do so. E. Pepperball Launchers and Associated Projectiles: 1. Pepperball launcher and projectiles: A device that discharges projectiles containing pepper powder and glass breaking projectiles. 16 Page 226 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) Description and capabilities: a. PepperBall VKS CARBINE, the Variable Kinetic System (VKS) is a compressed-air powered launcher designed to fire non-lethal PepperBall projectiles. The PepperBall VKS Carbine features a dual feed system that offers the ability to quickly switch between hopper mode for optimum versatility. b. PepperBall LIVE-X PROJECTILE, the Live-X Projectile contains a concentrated amount of PAVA pepper powder. One round of LIVE-X contains the equivalent to 10 standard PepperBall rounds. Discharged from a PepperBall Launcher, the projectile has a velocity of 280-350 FPS. The projectile has a direct impact of 60ft and an area of saturation of 150+ft. The projectile contains 5% PAVA powder. c. PepperBall GLASS BREAKER PROJECTILE, a solid polymer projectile used for breaking out residential windows and side-glass of automobiles. Not for use on humans. Discharged from a PepperBall launcher, the projectile has a velocity of 280-350 FPS. The projectile has a direct impact of 60ft and an area of saturation of 150+ft. Purpose To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include, but are not limited to: Self-destructive, dangerous and/or combative individuals. Riot/crowd control and civil unrest incidents. Circumstances where a tactical advantage can be obtained. Potentially vicious animals. Training exercises or approved demonstrations. Authorized Use Only those officers who have been trained in the use of PepperBall launchers are authorized to use the PepperBall launchers. Expected lifespan PepperBall VKS Carbine- 20 years PepperBall Live-X Projectile- 3 years PepperBall Glass Breaker Projectile- 3 years 17 Page 227 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) Quantity, Cost, and Fiscal Impact PepperBall Launchers and Associated Projectiles Equipment Name and Model/ Quantity Initial Cost Fiscal Impact(FY 22&23) Manufacturer Per Unit) Approx.for maintenance and repair) PepperBall VKS CARBINE 11 849 50(per unit) PepperBall LIVE-X PROJECTILE 3,105 2.99 0 per projectile) These were i miscounted last year and the number is now accurately C1 being reflected w to be 3,105 in our inventory. PepperBall GLASS BREAKER 500 2.43 0 PROJECTILE per projectile) r f ry µqA Training Sworn members utilizing PepperBall launchers and projectiles are trained in their use by POST certified less lethal and chemical agent instructors. Legal and Procedural Rules Use is established under PDM 308 Control Devices and Techniques policy and PDM 300 Use of Force. It is the policy of the CVPD to utilize PepperBall only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force. 18 Page 228 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) F. Less Lethal Shotguns and related munitions 1. Less Lethal Shotgun and Munitions: Less Lethal Shotgun is used to deploy the less lethal 12-gauge Super-Sock Beanbag Round. The shotgun is designed as a less lethal tool and is painted bright orange to distinguish itself from other weapons systems. Description and capabilities: a. REMINGTON 870 LESS LETHAL SHOTGUN, the Remington 870 Less Lethal Shotgun is used to deploy the less lethal 12-gauge Super Sock Beanbag Round up to a distance of 75 feet. The range of the weapon system helps to maintain space between officers and a suspect, reducing the immediacy of the threat which is a principle of De- escalation. b. 12-GAUGE CTS SUPER SOCK BEANBAG ROUND, a less lethal 2.4 inch 12- gauge shotgun round firing a ballistic fiber bag filled with 40 grams of lead shot at a velocity of 270-290 FPS. CTS Super-Sock rounds are discharged from a dedicated 12-gauge shotgun that is distinguishable by an orange butt stock and foregrip. This round provides accurate and effective performance when fired from the approved distance of not fewer than five (5) feet. The maximum effective range of this munition is up to 75 feet from the target. The Model 2581 Super-Sock is in its deployed state immediately upon exiting the barrel. it does not require a minimum range to "unfold" or"stabilize." The Super-Sock is an aerodynamic projectile. However, accuracy is relative to the shotgun, barrel length, environmental conditions, and the operator. The Super-Sock is very accurate. However, effectiveness depends on many variables, such as distance, clothing, stature, weather, and the point where the projectile impacts. Put ose To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Authorized Use Situations for use of the less lethal weapons systems may include,but are not limited to: Self-destructive, dangerous and/or combative individuals. Riot/crowd control and civil unrest. Circumstances where a tactical advantage can be obtained. Potentially vicious animals. Training exercises or approved demonstrations. Expected lifespan Remington 870 Less Lethal Shotgun - 25 years. 19 Page 229 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) Super Sock Round-No listed expiration date. Quantity, Cost, and Fiscal Impact Less Lethal Shotguns and related munitions Equipment Name and Model/Manufacturer Quantity Initial Fiscal Impact(FY 22&23) Cost Approx.for maintenance and Per Unit) repair) REMINGTON 870 LESS LETHAL SHOTGUN 71 481.38 50(per unit) 12-GAUGE CTS SUPER SOCK BEANBAG ROUND 487 5.00 per round) These were miscounted last year and the G number is now accurately being reflected to be 487 in our inventory. Training All officers are trained in the 12-gauge less lethal shotgun as a less lethal option by Department training personnel. Legal and Procedural Rules Use is established under PDM 308 - Control Devices and Techniques and PDM 300 - Use of Force. it is the policy of the CVPD to only utilize the less lethal shotgun for official law enforcement purposes, and pursuant to State and Federal Law, including those regarding the use of force. G. Chemical Agents (non-munition) 1. Chemical Agent Canisters: Canisters that contain chemical agents that are released when deployed. 20 Page 230 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) Description and capabilities: a. DEFENSE TECHNOLOGY, FLAMELESS TRI-CHAMBER CS GRENADE #1032, The design of the Tri-Chamber Flameless CS Grenade allows the contents to burn within an internal can and disperse the agent safely with reduced risk of fire. The grenade is designed primarily for indoor tactical situations to detect and/or dislodge a barricaded subject. This grenade will deliver approximately .70 oz. of agent during its 20-25 second burn time. The Tri-Chamber Flameless Grenade can be used in crowd control as well as tactical deployment situations by law enforcement and corrections but was designed with the barricade situation in mind. Its applications in tactical situations are primarily to detect and/or dislodge barricaded subjects. The purpose of the Tri-Chamber Flameless Grenade is to minimize the risks to all parties through pain compliance, temporary discomfort, and/or incapacitation of potentially violent or dangerous subjects. The Tri-Chamber Flameless Grenade provides the option of delivering a pyrotechnic chemical device indoors, maximizing the chemical's effectiveness via heat and vaporization, while minimizing or negating the chance of fire to a structure. The Tri- Chamber Flameless Grenade is NOT to be launched utilizing a launching cup. b. DEFENSE TECHNOLOGY, SPEDE-HEAT CONTINUOUS DISCHARGE CS GRENADE #1072, the Spede-HeatTM CS Grenade is a high volume, continuous burn. It expels its payload in approximately 20-40 seconds. The payload is discharged through four gas ports on top of the canister, three on the side and one on the bottom. This launchable grenade is 6.12 in. by 2.62 in. and holds approximately 2.9 oz. of active agent. c. DEFENSE TECHNOLOGY, RIOT CONTROL CONTINUOUS DISCHARGE CS GRENADE #1082, the Riot Control CS Grenade is designed specifically for outdoor use in crowd control situations with a high volume continuous burn that expels its payload in approximately 20-40 seconds through four gas ports located on the top of the canister. This grenade can be used to conceal tactical movement or to route a crowd. The volume of smoke and agent is vast and obtrusive. This launchable grenade is 6.0 in. by 2.35 in. and holds approximately 2.7 oz. of active agent. d. DEFENSE TECHNOLOGY, TRIPLE-CHASER SEPARATING CS CANISTER#1026, the Triple-Chaser CS consists of three separate canisters pressed together with separating charges between each. When deployed, the canisters separate and land approximately 20 feet apart allowing increased area coverage in a short period of time. This grenade can be hand thrown or launched from a fired delivery system. The grenade is 6.5 in. by 2.7 in. and 21 Page 231 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) holds an approximately 3.2 oz. of active agent payload. It has an approximate burn time of 20-30 seconds. Purpose To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include, but are not limited to: Self-destructive, dangerous and/or combative individuals. Riot/crowd control and civil unrest incidents. Barricaded subjects Circumstances where a tactical advantage can be obtained. Potentially vicious animals. Training exercises or approved public exhibitions. Authorized Use Only officers who have received POST certification in the use of chemical agents are authorized to use chemical agents. Expected lifespan 5 years from manufacturing date. Quantity, Cost, and Fiscal Impact Chemical Agents (non-munition) Chemical Agent Canisters Equipment Name and Model/ Quantity Initial Cost Fiscal Impact(FY 22&23) Manufacturer Per Unit) Approx.for maintenance and repair) DEFENSE TECHNOLOGY, 83 31.89 Pending City Council Approval,purchase order in FLAMELESS TRI-CHAMBER per canister)process for obtaining 40 more G$39.90 each(total CS GRENADE#1032 of'$1,596). bo fa% 22 Page 232 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) DEFENSE TECHNOLOGY,There was an 22.89 Pending City Council Approval,purchase order in SPEDE-HEAT CONTINUOUS error last vear per canister)process for obtaining 40 more @$32.30 each(total DISCHARGE CS GRENADE and the number of$1,292). 1072 is now accurately being reflected tobe0inour inventory.. CS DEFENSE TECHNOLOGY, 116 22.89 0 RIOT CONTROL CS GRENADE per canister) 1082 IR DEFENSE TECHNOLOGY, 49 39.90 0 TRIPLE-CHASER SEPARATING per canister) CS CANISTER#1026 Training Sworn members utilizing chemical agent canisters are certified by POST less lethal and chemical agent instructors. Legal and Procedural Rules Use is established under the PDM 308.6 Tear Gas Guidelines and PDM 300 Use of Force. It is the policy of the CVPD to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force. H. Diversionary Devices 1. Diversionary Devices "Flashbangs": Diversionary/distraction devices are ideal for distracting dangerous suspects during hostage rescue, barricaded subjects, room entry or other high-risk incidents. 23 Page 233 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) Description and capabilities: COMBINED TACTICAL SYSTEMS (CTS), 7290M DIVERSIONARY DEVICE, the CTS 7290M is a serialized steel bodied single use non-bursting canister noise flash diversionary device. The weight is 430 grams. The light output is 2 million candela minimum. The sound output is 165-175 average decibels. The device produces a thunderous bang with an intense bright light. Ideal for distracting dangerous suspects during hostage rescue, barricaded subjects, room entry or other high-risk incidents. COMBINED TACTICAL SYSTEMS (CTS) 7290MT TRAINING DIVERSIONARY DEVICE, the CTS training devices have a re-loadable fuse for repeated training use. These training fuses produce lowered sound (120 decibels) and light output than the CTS 7290M diversionary device. Pu ose To produce atmospheric overpressure, a loud report, heat, and brilliant light that may cause short-term physiological and psychological sensory effects to suspects, providing a tactical advantage during high-risk incidents. Authorized Use By SWAT members who have been trained by a qualified instructor in the use and deployment of the device. The devices may be used for any of the following circumstances: CTS 7290M In hostage and barricaded subject situations In high-risk warrant(search/arrest) services where there may be extreme hazards to officers and/or the public During other high-risk situations where their use would enhance officer safety During controlled training exercises. CTS 7290MT During controlled training exercises. Expected lifespan All CTS devices have a 5-year manufacturer warranty from their shipment date. Devices that have passed the manufacturer warranty date should not be used except in a training environment 24 Page 234 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) Quantity, Cost, and Fiscal Impact Diversionary Devices "Flashban s" Equipment Name and Model/ Quantity Initial Cost Fiscal Impact(FY 22&23) Manufacturer Per Unit Approx.for maintenance and repair) COMBINED TACTICAL 79 at the time 40.50 0 SYSTEMS(CTS), 7290M this document DIVERSIONARY DEVICE was created last year,but we had a purchase order in process simultaneously prior to AB 481 taking effect, now bringing our current total to 106. COMBINED TACTICAL 8 44.65 0 SYSTEMS(CTS)7290MT device device bodies) TRAINING DIVERSIONARY bodies). DEVICE There was an error last year and the number is now accurately being reflected to be 8 in our inventorv. 108 14.65 trainin fuses training fuses Training Prior to use, SWAT team members must attend a POST certified SWAT academy or equivalent training. SWAT team members who have not yet completed an academy may use diversionary devices if they have been trained by a CVPD SWAT team member that has completed a diversionary device instructor school. The SWAT team conducts diversionary device training annually. Legal and Procedural Rules Sworn personnel shall only utilize diversionary devices for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force. 25 Page 235 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) I. Specialized Firearms Less than .50 Caliber 1. Assault Rifle: Semi-automatic long-rifle that increases precision and accuracy. Description and capabilities: a. SMITH AND WESSON M&P-10 RIFLE (NOT STANDARD ISSUE), the M&P-10 is a gas operated semi-automatic rifle with an 18-inch barrel that is engineered with a 1/10 twist and fires .308 caliber ammunition. b. SMITH & WESSON MP15X RIFLE (DEPARTMENT STANDARD ISSUE), the MP15X is a gas operated semi-automatic rifle with a 16-inch barrel that is engineered with a 1/9 twist and fires 5.56/.223 caliber ammunition. c. COLT M4 LE6946CQB RIFLE (CURRENT SWAT STANDARD ISSUE), the M4 LE6946CQB is a gas operated semi-automatic rifle with a 10.3-inch barrel that is engineered with a 1/7 twist and fires 5.56/.223 caliber ammunition. d. DANIEL DEFENSE DDM4 MK18 RIFLE (FUTURE SWAT STANDARD ISSUE), the DDM4 MK18 is a gas operated semi-automatic rifle with a 10.3-inch barrel that is engineered with a 1/7 twist and fires 5.56/.223 caliber ammunition. Purpose: To be used as precision weapons to address threats with more accuracy and/or greater distance than a handgun, if present and feasible. Authorized Use: Unless exigent circumstances exist, only CVPD sworn members who have completed and maintained department training standards may deploy the M&P- 10, MP15X, M4 LE6946CQB, and/or DDM4 MK18 rifles. Expected Lifespan: The projected rifle lifespan is determined by frequency of use. However, Smith and Wesson, Colt, and Daniel Defense all provide a limited lifetime warranty. Based on current use; the estimated lifespan for the M&P-10 is 50 years, for the MP15X 20 years, and for the DDM4 10 years. 26 Page 236 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) Quantity, Cost, and Fiscal Impact: Specialized Firearms Less than .50 Caliber Assault Rifles Equipment Name and Model/ Quantity Initial Cost Fiscal Impact(FY 22&23) Manufacturer Per Unit) (Approx.for maintenance and repair) SMITH AND WESSON M&P- 1 1700 50 10 RIFLE .308 CAL(NOT STANDARD ISSUE) 0 SMITH&WESSON MP15X 94 855 50 RIFLE 5.56 CAL DEPARTMENT STANDARD ISSUE) COLT M4 LE6946CQB 24 1,500 SCHEDULED TO BE REMOVED RIFLE 5.56 CAL (CURRENT FROM SERVICE MAY2023) SWAT STANDARD ISSUE) PPTM4- DANIEL DEFENSE DDM4 24 2,083 50,000.00 MK18 RIFLE 5.56 CAL APPROVED PURCHASE, FUTURE SWAT SHIPMENT EXPECTED DELIVERY STANDARD ISSUE)APRIL 2023) 27 Page 237 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DocuSign Envelope ID:86631AA9-C450-40D5-A124-EF43E67741E8 ATTACHMENT A CVPD MILITARY EQUIPMENT INVENTORY (2023) Training: Sworn department members are required to complete annual training and qualifications to operate department rifles. Legal and Procedural Rules: Use is established under PDM 300 - Use of Force. It is the policy of the CVPD to only utilize the rifle for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force. 28 Page 238 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Police Department Chula Vista PD Policy Manual Military Equipment 714.1 PURPOSE AND SCOPE This Department policy establishes guidelines for the use, training, approval, and procurement of existing military equipment and future military equipment acquisitions in accordance with California Assembly Bill 481 (AB 481), codified in California Government Code § 7070 -7075. Additionally, this policy outlines the fiscal impact and specific descriptions of existing military equipment within the Department's inventory. 714.1.1 BACKGROUND On September 30, 2021, the Governor of the State of California approved AB 481 requiring law enforcement agencies to obtain approval of a military equipment policy by the applicable governing body (The Chula Vista City Council). The Department is required to seek approval of this military equipment use policy from the governing body at a regular open meeting prior to the Department taking certain actions relating to the funding, acquisition, or use of military equipment, as defined. The bill allows the governing body to approve the policy only if it determines that the military equipment meets specified standards. The policy is subject to annual review by the governing body to determine whether, based on an annual military equipment report, the standards set forth in the approving policy have been met. The governing body may renew the authorizing policy, disapprove authorization for particular military equipment where standards have not been met, or require modifications to this military equipment use policy to address any non-compliance with standards. Finally, the bill requires publication of this military equipment use policy and the annual military equipment report on the Department's website. The military equipment use policy must be posted on the website at least 30 days prior to the City Council meeting. 714.1.2 DEFINITIONS Pursuant to AB 481, the following definitions are applicable only to the Department's current military equipment inventory and potential future military equipment acquisitions for operational needs. (For a detailed list, refer to California Government Code § 7070, for "military equipment" as defined within the assembly bill.) Governing body - The Chula Vista City Council. Military equipment - Items defined by California Government Code § 7070(c)(1) through (c)(16). The definition includes but is not limited to the following: • Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. However, police versions of standard consumer vehicles are specifically excluded from this definition. Policy 714 Policy 714 Page 239 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Police Department Chula Vista PD Policy Manual Copyright Lexipol, LLC [DATE TO BE INSERTED] All Rights Reserved. Published with permission by Chula Vista Police Military Equipment - 2 Military Equipment • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. • Weaponized aircraft, vessels, or vehicles of any kind. (Note that none of the Chula Vista Police Department's drones are weaponized). • Battering rams, slugs, and breaching apparatus that are explosive in nature. However, items designed to remove a lock, such as bolt cutters, or a handheld ram designed to be operated by one person, are specifically excluded from this definition. • Firearms and ammunition of .50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition. • Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons under California Penal Code § 30510 and California Penal Code § 30515 with the exception of standard issue service weapons and ammunition of less than .50 caliber that are issued to sworn members. • Any firearm or firearm accessory that is designed to launch explosive projectiles. • Noise-flash diversionary devices and explosive breaching tools. • Munitions containing tear gas or OC, excluding standard service-issued handheld pepper spray. • Taser ® Shockwave, microwave weapons, water cannons, and long-range acoustic devices (LRADs). • Kinetic energy weapons and munitions. • Any other equipment as determined by a governing body or a state agency to require additional oversight. Military equipment use policy - refers to this Department policy and means a publicly released, written document governing the use of military equipment by the Department that addresses, at a minimum, all of the following: • A description of each type of military equipment, the quantity sought, its capabilities, expected lifespan, and product descriptions from the manufacturer of the military equipment. • The purposes and authorized uses for which the Department proposes to use each type of military equipment. • The fiscal impact of each type of military equipment, including the initial costs of obtaining the equipment and estimated annual costs of maintaining the equipment. • The legal and procedural rules that govern each authorized use. • The training, including any course required by the Commission on Peace Officer Standards and Training, that must be completed before any sworn member is authorized to use each specific type of military equipment to ensure the full protection of the public's welfare, safety, civil rights, and civil liberties and full adherence to the military equipment use policy. Page 240 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Police Department Chula Vista PD Policy Manual Copyright Lexipol, LLC [DATE TO BE INSERTED] All Rights Reserved. Published with permission by Chula Vista Police Military Equipment - 3 Military Equipment • The mechanisms to ensure compliance with the military equipment use policy, including which independent persons or entities have oversight authority, and, if applicable, what legally enforceable sanctions are put in place for violations of the policy. • The procedures by which members of the public may register complaints or concerns or submit questions about the use of each specific type of military equipment, and how the Department will ensure that each complaint, concern, or question receives a response in a timely manner. Law enforcement agency means any of the following: 1. A police department, including the police department of a transit agency, school district, or any campus of the University of California, the California State University, or California Community Colleges. 2. A sheriff's department. 3. A district attorney's office. 4. A county probation office. 714.1.3 MILITARY EQUIPMENT USAGE GUIDELINES The Chula Vista Police Department retains and employs a wide variety of equipment, some of which is defined as military equipment by California Government Code § 7070, to assist in maintaining public safety by providing the highest quality police services to our community. Military equipment shall only be used by a Department employee only after applicable training, including any course required by the Commission on Peace Officer Standards and Training (POST), has been completed, unless exigent circumstances arise. Any military equipment acquired and authorized by the Department must be necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety and be reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety (California Government Code § 7071 (d)(1)(A)(C)). Additionally, it is the policy of the Chula Vista Police Department that its military equipment be used to safeguard the public's welfare, safety, civil rights, and civil liberties (California Government Code§ 7071(d)(1)(B)). The Chula Vista Police Department recognizes that critical incidents are unpredictable and can be very dynamic in nature. A variety of military equipment options can greatly assist incident commanders, officers, and specific units in bringing those incidents to a swift resolution in a safe manner. While this procedure is wide -ranging, it is not all inclusive. There may be instances wherein unpredictable critical incidents demand the need for incident commanders to authorize military equipment to be used in a manner not outlined within t his policy. In scrutinizing those particular instances, the judgment of the incident commander influenced by the totality of the circumstances, public safety, officer safety, civil rights, and information available at the time will be used. It is incumbent upon incident commanders, supervisors, individual officers, and specific units to recognize the particular circumstances wherein military equipment should be employed to enhance the safety of the public and officers. Page 241 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Police Department Chula Vista PD Policy Manual Copyright Lexipol, LLC [DATE TO BE INSERTED] All Rights Reserved. Published with permission by Chula Vista Police Military Equipment - 4 Military Equipment 714.2 POLICY It is the policy of the Chula Vista Police Department that members of this Department comply with the provisions of California Government Code § 7071 with respect to military equipment. 714.3 MILITARY EQUIPMENT COORDINATOR The Professional Standards Unit manager or their designee will act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to: 1. Acting as liaison to the governing body for matters related to the requirements of this policy. 2. Identifying the Chula Vista Police Department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body. 3. Conducting an annual inventory of all military equipment at least annually. 4. Preparing for, scheduling, and/or coordinating the annual community engagement meeting to include: (a) Ensuring the details of the meeting are publicized. (b) Preparing for public questions regarding the Department's funding, acquisition, and use of the equipment. 5. Preparing the annual military equipment report for submission to the Chief of Police, and ensuring that the report is made available on the Department's website (California Government Code § 7072). 6. Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner. 714.4 MILITARY EQUIPMENT INVENTORY The following constitutes a list of qualifying equipment for the Chula Vista Police Department: (See attachment A for the Chula Vista Police Department military equipment list) 714.5 APPROVAL The Chief of Police or their designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or their designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the Department website at least 30 days prior to any regular meeting of the City Council concerning the military equipment at issue (California Government Code § 7071). The military equipment policy must be approved by the governing body prior to engaging in any of the following (California Government Code § 7071): 1. Requesting military equipment made available pursuant to 10 USC § 2576a. This section is also commonly referred to as the Defense Logistics Agency 1033 Program. The Chula Vista Police Department does not participate in this program, Page 242 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Police Department Chula Vista PD Policy Manual Copyright Lexipol, LLC [DATE TO BE INSERTED] All Rights Reserved. Published with permission by Chula Vista Police Military Equipment - 5 Military Equipment 2. Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers. 3. Acquiring military equipment either permanently or temporarily, including by borrowing or leasing. 4. Collaborating with another law enforcement agency in the deployment or other use of military equipment within the territorial jurisdiction of the governing body. 5. Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body. 6. Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of, military equipment. 7. Acquiring military equipment through any other means. 714.6 ANNUAL MILITARY EQUIPMENT REPORT Upon approval of a military equipment policy, the Chief of Police or their designee shall submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (California Government Code § 7072). The Chief of Police or their designee shall also make each annual military equipment report publicly available on the Chula Vista Police Department website for as long as the military equipment is available for use. The report shall include all information required by California Government Code § 7072 for the preceding calendar year for each type of military equipment in the Chula Vista Police Department inventory. The military equipment report shall, at a minimum, include the following information from the immediate previous calendar year for each type of military equipment: 1. A summary of how the military equipment was used and the purpose for its use. 2. A summary of any complaints or concerns received concerning the military equipment. 3. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response, consistent with state law and employee privacy restrictions. 4. The total annual cost for each type of military equipment. 5. The quantity possessed for each type of military equipment. 6. If the Department intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment. The governing body will determine, based on the annual military equipment report, whether each type of military equipment identified in the report has complied with the standards for approval as set forth by AB 481. If the governing body determines that a type of military equipment identified in the annual military equipment report has not complied with the standards as set forth by AB 481, it may either disapprove a renewal of the authorization for that type of military equipment or require modifications to this military equipment use procedure in a manner that will resolve lack of compliance. Page 243 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Police Department Chula Vista PD Policy Manual Copyright Lexipol, LLC [DATE TO BE INSERTED] All Rights Reserved. Published with permission by Chula Vista Police Military Equipment - 6 Military Equipment 714.7 COMMUNITY ENGAGEMENT Within 30 days of submitting and publicly releasing the annual military equipment report, the Department shall hold at least one well -publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment. (California Government Code § 7072({b)). 714.8 COORDINATION WITH OTHER JURISDICTIONS On occasion, the Department may be required to assist other law enforcement agencies in a formal Law Enforcement Mutual Aid Request ({LEMA) or support with day to day operational collaboration (i.e. pursuits, investigative unit assistance, joint law enforcement operations, etc.). The specific guidance and requirements for mutual aid is governed under PDM 352 - Outside Agency Assistance. In certain mutual aid or operational collaboration circumstances, it may be necessary for sworn Department members to utilize military equipment in order to fulfill an assigned mission (i.e. civil unrest, SWAT requests, barricaded suspects in a vehicle, etc.). When sworn Department members utilize military equipment in instances of mutual aid or law enforcement collaboration, the following shall apply: 1. Department members are required to adhere to the Department's Military Equipment policy and all_ policies and procedures outlined within the Chula Vista Police Department's Policy and Procedures Manual, regardless of operational jurisdiction. 2. Should the Chula Vista Police Department request mutual aid from another law enforcement agency within the City of Chula Vista and military equipment is required during the course of the response, the following shall apply: (a) The Chula Vista Police Department shall remain in charge of the overall incident command. (b) The Incident Commander or their designee shall brief the supervisor from the assisting agency and inform them of the mission, enforcement posture, and any pertinent information related to the incident. (c) The assisting agency will be expected to adhere to their respective policies and procedures, particularly those governing the use of military equipment. (d) If the Incident Commander is informed of or witnesses the utilization of military equipment by an assisting agency inconsistent with the guidelines set forth in this procedure, the Incident Commander may elect to cancel the request for mutual aid or re-assign the assisting agency to a different support mission. Page 244 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Police Department Chula Vista PD Policy Manual Copyright Lexipol, LLC [DATE TO BE INSERTED] All Rights Reserved. Published with permission by Chula Vista Police Military Equipment - 7 Military Equipment 714.9 MILITARY EQUIPMENT USAGE ACCOUNTABILITY 1. The use of military equipment is subject to individual Department policies and procedures. It is incumbent upon incident commanders, supervisors, and individual officers to recognize the specific circumstances wherein military equipment should be employed to enhance the safety of the public and officers and to bring an incident to a safe resolution. 2. Department members are bound to adhere to Department policies and procedures, in addition to state and local laws and ordinances when employing the use of the military equipment at any time. Violations of the law or Department Policies or Procedures may result in criminal or administrative investigations and/or actions. 3. Administrative investigations concerning complaints related to military equipment will be conducted in accordance with PDM 1019 - Personnel Complaints. 714.10 MILITARY EQUIPMENT MAINTENANCE AND INVENTORY All military equipment should be properly maintained and stored as set forth by Department policies and procedures or in the absence of that, by manufacturer guidelines. 714.11 TESTING AND EVALUATION OF MILITARY EQUIPMENT FOR POTENTIAL FUTURE ACQUISITION While the Department's current inventory of military equipment is wide ranging and versatile, advancements in technology, tactics, and operational effectiveness may necessitate the expansion or complete replacement of certain items of military equipment in the current catalog. From time to time, certain equipment vendors and/or manufacturers may loan certain military equipment items to the Department for testing by various units to conduct assessments involving feasibility of use, cost analysis, effectiveness, and training efficacy. This process is commonly referred to as "Testing and Evaluation" (T & E). During the testing and evaluation process, various units and/or subject matter experts conduct assessments of the equipment being tested and opine the viability of whether or not an item of military equipment should be considered for Department use. Military equipment that is being tested shall not be used operationally without approval from the Chief of Police or their designee. The following limitations shall apply should the Department receive military equipment for the testing and evaluation process: 1. Only similar military equipment within the Department's current military equipment inventory may be used for Testing and Evaluation. Examples might include but are not limited to: (a) Similar firearms by a manufacturer other than those approved in the current inventory (b) Similar UAS platforms featuring a different make and/or model other than those approved in the current inventory. (c) Similar diversionary devices or chemical agents featuring a different make and/ or model other than those in the current inventory, etc. Page 245 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Police Department Chula Vista PD Policy Manual Copyright Lexipol, LLC [DATE TO BE INSERTED] All Rights Reserved. Published with permission by Chula Vista Police Military Equipment - 8 Military Equipment 2. Military equipment that is not similar to the Department's current military equipment inventory must be approved through the governing body and Chief of Police or their designee, prior to the acquisition for the testing and evaluation process. Examples include but are not limited to: (a) New military equipment technology not currently approved or currently in use by the Department. (b) Firearms as defined under military equipment that operate with a different weapons platform other than what is approved or currently in use by the Department (i.e. bullpup platform, higher caliber weapon than what is in the current inventory, etc.). Military equipment items that have been assessed and recommended for final approval after undergoing the testing and evaluation process must be approved by the governing body and the Chief of the Police or their designee prior to be being formally acquired for Department inventory and operational use. 714.12 MILITARY EQUIPMENT COMPLAINTS AND INQUIRIES In some instances, the application and use of military equipment can cause questions and/ or concerns for members of the community. It is of vital importance that community members' questions regarding the application and use of military equipment are addressed. The Chula Vista Police Department is committed to full and fair investigation of citizen complaints. As such, the Department has sound internal procedures for thorough and impartial investigations of citizen complaints. Resolving complaints in a fair, impartial, and expeditious manner will ensure the consistent high level of integrity and efficiency maintained by the Department. 1. Complaints directly related to the application or use of military equipment shall be handled in accordance with PDM 1019 - Personnel Complaints. Individuals from the public may file complaints in any form, including in writing, by email, in person, or by telephone. 2. The Professional Standards Unit will maintain statistical data concerning the number and types of complaints regarding military equipment. 3. The Chula Vista Police Department values open communication and transparency. Community questions and/or concerns regarding the application and use of specified military equipment should be addressed in the following manner: (a) Via the Department's website (in the "Contact Us" section), the public can communicate specific military equipment related questions, comments, or concerns to the Department. The Department will respond to the submissions at least quarterly. (b) At pre-determined community engagement meetings related to military equipment. (c) At City Council meetings related to military equipment. (d) In all other circumstances, the public should be directed to the Department Military Equipment policy and Annual Military Equipment Report available on the Chula Vista Police Department website. Page 246 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Police Department Chula Vista PD Policy Manual Copyright Lexipol, LLC [DATE TO BE INSERTED] All Rights Reserved. Published with permission by Chula Vista Police Military Equipment - 9 Military Equipment 714.13 MAINTENANCE OF MILITARY EQUIPMENT SUPPLY LEVELS Under rare and limited circumstances, the Department might use military equipment (ie. chemical agents, diversionary devices, etc.) at a level higher than anticipated due to unpredictable events such as riots, mutual aid, pro-longed critical incidents, etc. The City Manager or their designee may approve the purchase of supplies to renew Department inventories, without the approval of the governing body, under these rare and exigent circumstances. The purchase of these supplies shall only be for equipment that has been previously approved by the governing body.The Police Chief may approve the purchase of supplies to replace the types of equipment authorized by this policy, as well as additional equipment of the same type. The Military Equipment Coordinator or their designee shall report these purchases via the annual military equipment use list required byreport submitted in accordance with California Government Code §section 7072. Page 247 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Policy 714 Chula Vista Police Department Chula Vista PD Policy Manual Military Equipment 714.1 PURPOSE AND SCOPE This Department policy establishes guidelines for the use, training, approval, and procurement of existing military equipment and future military equipment acquisitions in accordance with California Assembly Bill 481 (AB 481), codified in California Government Code § 7070-7075. Additionally, this policy outlines the fiscal impact and specific descriptions of existing military equipment within the Department's inventory. 714.1.1 BACKGROUND On September 30, 2021, the Governor of the State of California approved AB 481 requiring law enforcement agencies to obtain approval of a military equipment policy by the applicable governing body (The Chula Vista City Council). The Department is required to seek approval of this military equipment use policy from the governing body at a regular open meeting prior to the Department taking certain actions relating to the funding, acquisition, or use of military equipment, as defined. The bill allows the governing body to approve the policy only if it determines that the military equipment meets specified standards. The policy is subject to annual review by the governing body to determine whether, based on an annual military equipment report, the standards set forth in the approving policy have been met. The governing body may renew the authorizing policy, disapprove authorization for particular military equipment where standards have not been met, or require modifications to this military equipment use policy to address any non-compliance with standards. Finally, the bill requires publication of this military equipment use policy and the annual military equipment report on the Department's website. The military equipment use policy must be posted on the website at least 30 days prior to the City Council meeting. 714.1.2 DEFINITIONS Pursuant to AB 481, the following definitions are applicable only to the Department's current military equipment inventory and potential future military equipment acquisitions for operational needs. (For a detailed list, refer to California Government Code § 7070, for "military equipment" as defined within the assembly bill.) Governing body - The Chula Vista City Council. Military equipment - Items defined by California Government Code § 7070(c)(1) through (c)(16). The definition includes but is not limited to the following: •Unmanned, remotely piloted, powered aerial or ground vehicles. •Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. However, police versions of standard consumer vehicles are specifically excluded from this definition. •High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. Copyright Lexipol, LLC 2026/03/02, All Rights Reserved. Published with permission by Chula Vista Police Department Military Equipment - 684Page 248 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Police Department Chula Vista PD Policy Manual Military Equipment •Tracked armored vehicles that provide ballistic protection to their occupants. •Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. •Weaponized aircraft, vessels, or vehicles of any kind. (Note that none of the Chula Vista Police Department's drones are weaponized). •Battering rams, slugs, and breaching apparatus that are explosive in nature. However, items designed to remove a lock, such as bolt cutters, or a handheld ram designed to be operated by one person, are specifically excluded from this definition. •Firearms and ammunition of .50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition. •Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons under California Penal Code § 30510 and California Penal Code § 30515 with the exception of standard issue service weapons and ammunition of less than .50 caliber that are issued to sworn members. •Any firearm or firearm accessory that is designed to launch explosive projectiles. •Noise-flash diversionary devices and explosive breaching tools. •Munitions containing tear gas or OC, excluding standard service-issued handheld pepper spray. •Taser ® Shockwave, microwave weapons, water cannons, and long-range acoustic devices (LRADs). •Kinetic energy weapons and munitions. •Any other equipment as determined by a governing body or a state agency to require additional oversight. Military equipment use policy - refers to this Department policy and means a publicly released, written document governing the use of military equipment by the Department that addresses, at a minimum, all of the following: •A description of each type of military equipment, the quantity sought, its capabilities, expected lifespan, and product descriptions from the manufacturer of the military equipment. •The purposes and authorized uses for which the Department proposes to use each type of military equipment. •The fiscal impact of each type of military equipment, including the initial costs of obtaining the equipment and estimated annual costs of maintaining the equipment. •The legal and procedural rules that govern each authorized use. •The training, including any course required by the Commission on Peace Officer Standards and Training, that must be completed before any sworn member is authorized to use each specific type of military equipment to ensure the full protection of the public's welfare, safety, civil rights, and civil liberties and full adherence to the military equipment use policy. Copyright Lexipol, LLC 2026/03/02, All Rights Reserved. Published with permission by Chula Vista Police Department Military Equipment - 685Page 249 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Police Department Chula Vista PD Policy Manual Military Equipment •The mechanisms to ensure compliance with the military equipment use policy, including which independent persons or entities have oversight authority, and, if applicable, what legally enforceable sanctions are put in place for violations of the policy. •The procedures by which members of the public may register complaints or concerns or submit questions about the use of each specific type of military equipment, and how the Department will ensure that each complaint, concern, or question receives a response in a timely manner. Law enforcement agency means any of the following: 1.A police department, including the police department of a transit agency, school district, or any campus of the University of California, the California State University, or California Community Colleges. 2.A sheriff's department. 3.A district attorney's office. 4.A county probation office. 714.1.3 MILITARY EQUIPMENT USAGE GUIDELINES The Chula Vista Police Department retains and employs a wide variety of equipment, some of which is defined as military equipment by California Government Code § 7070, to assist in maintaining public safety by providing the highest quality police services to our community. Military equipment shall only be used by a Department employee only after applicable training, including any course required by the Commission on Peace Officer Standards and Training (POST), has been completed, unless exigent circumstances arise. Any military equipment acquired and authorized by the Department must be necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety and be reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety (California Government Code § 7071 (d)(1)(A)(C)). Additionally, it is the policy of the Chula Vista Police Department that its military equipment be used to safeguard the public's welfare, safety, civil rights, and civil liberties (California Government Code § 7071(d)(1)(B)). The Chula Vista Police Department recognizes that critical incidents are unpredictable and can be very dynamic in nature. A variety of military equipment options can greatly assist incident commanders, officers, and specific units in bringing those incidents to a swift resolution in a safe manner. While this procedure is wide-ranging, it is not all inclusive. There may be instances wherein unpredictable critical incidents demand the need for incident commanders to authorize military equipment to be used in a manner not outlined within this policy. In scrutinizing those particular instances, the judgment of the incident commander influenced by the totality of the circumstances, public safety, officer safety, civil rights, and information available at the time will be used. It is incumbent upon incident commanders, supervisors, individual officers, and specific units to recognize the particular circumstances wherein military equipment should be employed to enhance the safety of the public and officers. Copyright Lexipol, LLC 2026/03/02, All Rights Reserved. Published with permission by Chula Vista Police Department Military Equipment - 686Page 250 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Police Department Chula Vista PD Policy Manual Military Equipment 714.2 POLICY It is the policy of the Chula Vista Police Department that members of this Department comply with the provisions of California Government Code § 7071 with respect to military equipment. 714.3 MILITARY EQUIPMENT COORDINATOR The Professional Standards Unit manager or their designee will act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to: 1.Acting as liaison to the governing body for matters related to the requirements of this policy. 2.Identifying the Chula Vista Police Department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body. 3.Conducting an annual inventory of all military equipment at least annually. 4.Preparing for, scheduling, and/or coordinating the annual community engagement meeting to include: (a)Ensuring the details of the meeting are publicized. (b)Preparing for public questions regarding the Department's funding, acquisition, and use of the equipment. 5.Preparing the annual military equipment report for submission to the Chief of Police, and ensuring that the report is made available on the Department's website (California Government Code § 7072). 6.Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner. 714.4 MILITARY EQUIPMENT INVENTORY The following constitutes a list of qualifying equipment for the Chula Vista Police Department: (See attachment A for the Chula Vista Police Department military equipment list) 714.5 APPROVAL The Chief of Police or their designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or their designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the Department website at least 30 days prior to any regular meeting of the City Council concerning the military equipment at issue (California Government Code § 7071). The military equipment policy must be approved by the governing body prior to engaging in any of the following (California Government Code § 7071): 1.Requesting military equipment made available pursuant to 10 USC § 2576a. This section is also commonly referred to as the Defense Logistics Agency 1033 Program. The Chula Vista Police Department does not participate in this program, Copyright Lexipol, LLC 2026/03/02, All Rights Reserved. Published with permission by Chula Vista Police Department Military Equipment - 687Page 251 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Police Department Chula Vista PD Policy Manual Military Equipment 2.Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers. 3.Acquiring military equipment either permanently or temporarily, including by borrowing or leasing. 4.Collaborating with another law enforcement agency in the deployment or other use of military equipment within the territorial jurisdiction of the governing body. 5.Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body. 6.Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of, military equipment. 7.Acquiring military equipment through any other means. 714.6 ANNUAL MILITARY EQUIPMENT REPORT Upon approval of a military equipment policy, the Chief of Police or their designee shall submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (California Government Code § 7072). The Chief of Police or their designee shall also make each annual military equipment report publicly available on the Chula Vista Police Department website for as long as the military equipment is available for use. The report shall include all information required by California Government Code § 7072 for the preceding calendar year for each type of military equipment in the Chula Vista Police Department inventory. The military equipment report shall, at a minimum, include the following information from the immediate previous calendar year for each type of military equipment: 1.A summary of how the military equipment was used and the purpose for its use. 2.A summary of any complaints or concerns received concerning the military equipment. 3.The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response, consistent with state law and employee privacy restrictions. 4.The total annual cost for each type of military equipment. 5.The quantity possessed for each type of military equipment. 6.If the Department intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment. The governing body will determine, based on the annual military equipment report, whether each type of military equipment identified in the report has complied with the standards for approval as set forth by AB 481. If the governing body determines that a type of military equipment identified in the annual military equipment report has not complied with the standards as set forth by AB Copyright Lexipol, LLC 2026/03/02, All Rights Reserved. Published with permission by Chula Vista Police Department Military Equipment - 688Page 252 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Police Department Chula Vista PD Policy Manual Military Equipment 481, it may either disapprove a renewal of the authorization for that type of military equipment or require modifications to this military equipment use procedure in a manner that will resolve lack of compliance. 714.7 COMMUNITY ENGAGEMENT Within 30 days of submitting and publicly releasing the annual military equipment report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment. (California Government Code § 7072(b)). 714.8 COORDINATION WITH OTHER JURISDICTIONS On occasion, the Department may be required to assist other law enforcement agencies in a formal Law Enforcement Mutual Aid Request (LEMA) or support with day to day operational collaboration (i.e. pursuits, investigative unit assistance, joint law enforcement operations, etc.). The specific guidance and requirements for mutual aid is governed under PDM 352 - Outside Agency Assistance. In certain mutual aid or operational collaboration circumstances, it may be necessary for sworn Department members to utilize military equipment in order to fulfill an assigned mission (i.e. civil unrest, SWAT requests, barricaded suspects in a vehicle, etc.). When sworn Department members utilize military equipment in instances of mutual aid or law enforcement collaboration, the following shall apply: 1.Department members are required to adhere to the Department's Military Equipment policy and all policies and procedures outlined within the Chula Vista Police Department's Policy and Procedures Manual, regardless of operational jurisdiction. 2.Should the Chula Vista Police Department request mutual aid from another law enforcement agency within the City of Chula Vista and military equipment is required during the course of the response, the following shall apply: (a)The Chula Vista Police Department shall remain in charge of the overall incident command. (b)The Incident Commander or their designee shall brief the supervisor from the assisting agency and inform them of the mission, enforcement posture, and any pertinent information related to the incident. (c)The assisting agency will be expected to adhere to their respective policies and procedures, particularly those governing the use of military equipment. (d)If the Incident Commander is informed of or witnesses the utilization of military equipment by an assisting agency inconsistent with the guidelines set forth in this procedure, the Incident Commander may elect to cancel the request for mutual aid or re-assign the assisting agency to a different support mission. Copyright Lexipol, LLC 2026/03/02, All Rights Reserved. Published with permission by Chula Vista Police Department Military Equipment - 689Page 253 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Police Department Chula Vista PD Policy Manual Military Equipment 714.9 MILITARY EQUIPMENT USAGE ACCOUNTABILITY 1.The use of military equipment is subject to individual Department policies and procedures. It is incumbent upon incident commanders, supervisors, and individual officers to recognize the specific circumstances wherein military equipment should be employed to enhance the safety of the public and officers and to bring an incident to a safe resolution. 2.Department members are bound to adhere to Department policies and procedures, in addition to state and local laws and ordinances when employing the use of the military equipment at any time. Violations of the law or Department Policies or Procedures may result in criminal or administrative investigations and/or actions. 3.Administrative investigations concerning complaints related to military equipment will be conducted in accordance with PDM 1019 - Personnel Complaints. 714.10 MILITARY EQUIPMENT MAINTENANCE AND INVENTORY All military equipment should be properly maintained and stored as set forth by Department policies and procedures or in the absence of that, by manufacturer guidelines. 714.11 TESTING AND EVALUATION OF MILITARY EQUIPMENT FOR POTENTIAL FUTURE ACQUISITION While the Department's current inventory of military equipment is wide ranging and versatile, advancements in technology, tactics, and operational effectiveness may necessitate the expansion or complete replacement of certain items of military equipment in the current catalog. From time to time, certain equipment vendors and/or manufacturers may loan certain military equipment items to the Department for testing by various units to conduct assessments involving feasibility of use, cost analysis, effectiveness, and training efficacy. This process is commonly referred to as "Testing and Evaluation" (T & E). During the testing and evaluation process, various units and/or subject matter experts conduct assessments of the equipment being tested and opine the viability of whether or not an item of military equipment should be considered for Department use. Military equipment that is being tested shall not be used operationally without approval from the Chief of Police or their designee. The following limitations shall apply should the Department receive military equipment for the testing and evaluation process: 1.Only similar military equipment within the Department's current military equipment inventory may be used for Testing and Evaluation. Examples might include but are not limited to: (a)Similar firearms by a manufacturer other than those approved in the current inventory (b)Similar UAS platforms featuring a different make and/or model other than those approved in the current inventory. (c)Similar diversionary devices or chemical agents featuring a different make and/ or model other than those in the current inventory, etc. Copyright Lexipol, LLC 2026/03/02, All Rights Reserved. Published with permission by Chula Vista Police Department Military Equipment - 690Page 254 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Police Department Chula Vista PD Policy Manual Military Equipment 2.Military equipment that is not similar to the Department's current military equipment inventory must be approved through the governing body and Chief of Police or their designee, prior to the acquisition for the testing and evaluation process. Examples include but are not limited to: (a)New military equipment technology not currently approved or currently in use by the Department. (b)Firearms as defined under military equipment that operate with a different weapons platform other than what is approved or currently in use by the Department (i.e. bullpup platform, higher caliber weapon than what is in the current inventory, etc.). Military equipment items that have been assessed and recommended for final approval after undergoing the testing and evaluation process must be approved by the governing body and the Chief of the Police or their designee prior to be being formally acquired for Department inventory and operational use. 714.12 MILITARY EQUIPMENT COMPLAINTS AND INQUIRIES In some instances, the application and use of military equipment can cause questions and/ or concerns for members of the community. It is of vital importance that community members' questions regarding the application and use of military equipment are addressed. The Chula Vista Police Department is committed to full and fair investigation of citizen complaints. As such, the Department has sound internal procedures for thorough and impartial investigations of citizen complaints. Resolving complaints in a fair, impartial, and expeditious manner will ensure the consistent high level of integrity and efficiency maintained by the Department. 1.Complaints directly related to the application or use of military equipment shall be handled in accordance with PDM 1019 - Personnel Complaints. Individuals from the public may file complaints in any form, including in writing, by email, in person, or by telephone. 2.The Professional Standards Unit will maintain statistical data concerning the number and types of complaints regarding military equipment. 3.The Chula Vista Police Department values open communication and transparency. Community questions and/or concerns regarding the application and use of specified military equipment should be addressed in the following manner: (a)Via the Department's website (in the "Contact Us" section), the public can communicate specific military equipment related questions, comments, or concerns to the Department. The Department will respond to the submissions at least quarterly. (b)At pre-determined community engagement meetings related to military equipment. (c)At City Council meetings related to military equipment. Copyright Lexipol, LLC 2026/03/02, All Rights Reserved. Published with permission by Chula Vista Police Department Military Equipment - 691Page 255 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Chula Vista Police Department Chula Vista PD Policy Manual Military Equipment (d)In all other circumstances, the public should be directed to the Department Military Equipment policy and Annual Military Equipment Report available on the Chula Vista Police Department website. 714.13 MAINTENANCE OF MILITARY EQUIPMENT SUPPLY LEVELS Under rare and limited circumstances, the Department might use military equipment (ie. chemical agents, diversionary devices, etc.) at a level higher than anticipated due to unpredictable events such as riots, mutual aid, pro-longed critical incidents, etc. The City Manager or their designee may approve the purchase of supplies to renew Department inventories, without the approval of the governing body, under these rare and exigent circumstances. The purchase of these supplies shall only be for equipment that has been previously approved by the governing body. The Military Equipment Coordinator or their designee shall report these purchases via the annual military equipment use list required by California Government Code § 7072. Copyright Lexipol, LLC 2026/03/02, All Rights Reserved. Published with permission by Chula Vista Police Department Military Equipment - 692Page 256 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 1 Updated 04/03/2026 CHULA VISTA POLICE DEPARTMENT 2025-2026 ANNUAL MILITARY EQUIPMENT REPORT INTRODUCTION: The Chula Vista Police Department possesses and utilizes a variety of equipment to safely resolve critical incidents and restore public safety. Some of the equipment is categorized as “military equipment” according to Government Code section 7070. The use of such equipment may greatly assist the department in the furtherance of its mission. The Chula Vista Police Department’s Mission; “In partnership with the community, is dedicated to providing community policing, with the highest level of professionalism and transparency. Chula Vista Police Department employees will provide fair, courteous, and compassionate service to enhance the quality of life in Chula Vista.” The Chula Vista Police Department recognizes that critical incidents can be unpredictable and very dangerous to both officers and the community. The use of military equipment is restricted to certain instances and in some cases only by certain officers and/or units. The use of the Department’s military equipment is continuously evaluated and the use of such equipment by department personnel is influenced by the totality of the circumstances, public safety, officer safety, civil rights, state law, and information available at the time of the equipment’s use. It is incumbent upon incident commanders, supervisors, individual officers, and specific specialized units to recognize the circumstances wherein military equipment should be utilized to enhance the safety of the public and officers, and to bring a critical incident to a safe resolution. In addition to maintaining the highest levels of public safety, the Chula Vista Police Department is committed to transparency, public trust, community partnerships, and compliance with the law. As such, the Department submits the following 2025-2026 Annual Military Equipment Report in accordance with annual reporting requirements set forth in California Government Code section 7072. This Annual Military Equipment Report outlines military equipment usage guidelines, inventory, fiscal impact, complaints, and reported concerns for the time period of January 1, 2025 through April 1, 2026. DEFINITIONS: Pursuant to AB 481, the following definitions are applicable only to the Department’s current military equipment inventory and potential future military equipment acquisitions for operational needs. (For a more detailed list, refer to Government Code section 7070, for “military equipment”.) “Governing body” means the Chula Vista City Council and Mayor. “Military equipment” means the following: 1. Unmanned Aerial Vehicles (UAV’s) and Robots: Page 257 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2 Updated 04/03/2026 2. Armored Personnel Carrier: Commercially produced wheeled personnel carrier used for law enforcement purposes. 3. Multi-Purpose Wheeled Vehicles: Command and Control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. This definition applies to the following vehicles: a. Mobile Command Vehicle 4. Battering rams, slugs, and breaching apparatuses that are explosive in nature. However, items designed to remove a lock, such as bolt cutters, or a handheld ram designed to be operated by one person, are specifically excluded from this definition. a. Ammunition of .50 Caliber or Greater: however, standard issue shotgun ammunition is specifically excluded from this definition. 5. Specialized Firearms / Ammunition less than .50 Caliber: including assault weapons as defined in Sections 30510 and 30515 of the Penal Code, with the exception of standard issue service weapons and ammunition of less than .50 caliber that are issued to officers, agents, or employees of a law enforcement agency or a state agency. 6. Any firearm or firearm accessory that is designed to launch explosive projectiles. 7. "Flashbang" grenades and explosive breaching tools, "tear gas," and "pepper balls," excluding standard, service-issued handheld pepper spray. This definition applies to all the Department’s inventory of flashbangs, pepper ball launchers and related ammunition. Additionally, this definition applies to all the Department’s inventory of various chemical agents and chemical agent delivery systems maintained by the SWAT Unit. These delivery systems are capable of dispersing chemical agents via burning, expulsion, liquid, or fog. 8. The following projectile launch platforms and their associated munitions: 40mm projectile launchers, "bean bag," rubber bullet, and specialty impact munition (SIM) weapons. This definition applies to all the Department’s inventory of 40 mm projectile launchers, which include 40 mm multi-launchers and bean bag shotguns, as well as all associated munitions. This definition also applies to the Department’s inventory of SIM ammunition and SIM modified weapons utilized by the SWAT Unit, In-Service Training Unit, and Police Academy for training. 9. Any other equipment as determined by a governing body or a state agency to require additional oversight. [NOTE: Effective January 1, 2022, AB 48 amended Penal Code 16352 to ban the use of kinetic energy projectiles and chemical agents by law enforcement agencies to disperse any assembly, protest, or demonstration, except by officers who have received proper training in their uses to defend against a threat to life or serious bodily injury to any individual (including a peace officer), or to bring an objectively dangerous and unlawful situation safely and effectively under control. Uses must adhere to certain requirements as defined by AB 48. CVPD is required to publish reports on each incident within 60 days of the incident. To date, there have been zero (0) incidents to report as defined by AB 48 and Penal Code 16352.] Page 258 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 3 Updated 04/03/2026 “Military equipment” does not include general equipment not designated as prohibited or controlled by the federal Defense Logistics Agency. “Military equipment use policy” refers to the Chula Vista Police Department Policy and Procedure and means a publicly released, written document governing the use of military equipment by the Department that addresses, at a minimum, all the following: 1. A description of each type of military equipment, the quantity sought, its capabilities, expected lifespan, and product descriptions from the manufacturer of the military equipment. 2. The purposes and authorized uses for which the Department proposes to use each type of military equipment. 3. The fiscal impact of each type of military equipment, including the initial costs of obtaining the equipment and estimated annual costs of maintaining the equipment. 4. The legal and procedural rules that govern each authorized use. 5. The training, including any course required by the Commission on Peace Officer Standards and Training, that must be completed before any sworn member is allowed to use each specific type of military equipment to ensure the full protection of the public’s welfare, safety, civil rights, and civil liberties and full adherence to the military equipment use policy. 6. The mechanisms to ensure compliance with the military equipment use policy, including which independent persons or entities have oversight authority, and, if applicable, what legally enforceable sanctions are put in place for violations of the policy. 7. The procedures by which members of the public may register complaints or concerns or submit questions about the use of each specific type of military equipment, and how the Department will ensure that each complaint, concern, or question receives a response in a timely manner. CVPD MILITARY EQUIPMENT The Chula Vista Police Department’s inventory of military equipment is varied and may fluctuate regularly, in particular the consumable items such as ammunition, chemical agents, or less lethal systems. This fluctuation in the inventory is based on several factors such as use for training, maintenance, deterioration, expiration, deployments, and manufacturer’s guidelines for replacement. While the Department strives to provide accuracy in its inventory reporting as prescribed by law, this attachment reflects approximations of certain consumable items of military equipment at the time of this policy’s publication. The Chula Vista Police Department recognizes that critical incidents are unpredictable and can be very dynamic in nature, and the mere possession of the military equipment does not warrant its use for every incident. A variety of military equipment options can greatly assist incident commanders, officers, and specific units in bringing those incidents to a peaceful resolution in a peaceful and safe manner. The use of military equipment is restricted for use only in certain instances and in some cases only by certain units or officers trained and certified for it use. Page 259 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 4 Updated 04/03/2026 The following sections outline the various types, descriptions, and guidelines for the use of military equipment from January 1, 2025 – April 1, 2026. [NOTE: The inventory of certain items of consumable military equipment (i.e. ammunition, diversionary devices, chemical agents, etc.) can fluctuate throughout the year. This can be due to operational usage, training usage, operational wear, and/or manufacturer recommended replacement guidelines. While the Department strives to provide accurate inventory reporting as prescribed by law, this attachment reflects approximations of certain consumable items of military equipment at the time of this policy’s publi cation.] A. Unmanned Remotely Piloted, Powered Aerial or Ground Vehicles 1. Uncrewed Aircraft System (UAS): An unmanned aircraft along with the associated equipment necessary to control it remotely.1 Description and capabilities: a. DJI MAVIC MINI 2, Miniature UAS that weighs approx. 249 grams and can record video and audio with approximately 30 minutes of flight time. b. DJI INSPIRE 2, UAS with a 4K camera, weighs approx. 4001 grams and has video recording capabilities, approx. 27 minutes of flight time. c. DJI MAVIC 2 ENTERPRISE, UAS with a HD camera, audible speaker, and light, weighs approx. 900 grams. Has video recording capabilities, approx. 31 minutes of flight time. d. DJI MAVIC 2 ENTERPRISE ADVANCED, UAS with a 4K thermal camera, audible speaker, and light. Weighs approx. 1100 grams, approx. 31 minutes of flight time. e. DJI MATRICE 4T, UAS with a 4K thermal camera, audible speaker, and light. Weighs approx. 1219 grams, approx. 49 minutes of flight time. f. DJI Box 3 with MATRICE 4TD, UAS with a 4K thermal camera, audible speaker, and light. Weighs approx. 1219 grams, approx. 49 minutes of flight time. g. DJI M300 with H30T, UAS that has 45 minutes of flight time, in all weather, has an IR camera, zoom camera and light. Weighs approx. 6300 grams. Has video recording capabilities. h. DJI M350 with H30T, UAS that has 55 minutes of flight time, in all weather, has an IR camera, zoom camera and light. Weighs approx. 6470 grams. Has video recording capabilities. 1 Government Code section 7070 uses the term “unmanned” where the FAA uses the term “uncrewed.” For compliance with the Government Code reporting purposes and consistency, this report will use the term “unmanned” Page 260 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 5 Updated 04/03/2026 i. DJI M210v2 with z30, UAS that has 35 minutes of flight time, in all weather, has an IR camera, zoom camera and light. Weighs approx. 6140 grams. Has video recording capabilities. j. DJI PHANTOM 4, UAS with a 4K camera, has video recording capabilities. Weighs approx. 1380 grams. k. DJI MAVIC 2 ZOOM, UAS with a 4K camera, weighs approx. 905 grams. Has video recording capabilities, approx. 31 minutes of flight time. l. DJI MAVIC PRO, UAS with a 4K camera, weighs approx. 743 grams. Has video recording capabilities, approx. 27 minutes of flight time. m. SKYDIO 2, UAS with 4K camera, weighs approx. 775 grams. Has video recording capabilities, approx. 23 minutes of flight time. n. SKYDIO X2 (Color/Thermal), UAS with 4K and thermal camera, weighs approx. 1325 grams. Has video recording capabilities, approx. 35 minutes of flight time. o. PARROT ANAFI, UAS with 4K thermal camera, weighs approx. 320 grams, has video recording capabilities, approx. 25 minutes of flight time. p. BRINC LEMUR S, UAS with 1080p HD and IR camera, weighs 1088 grams. Has video recording capabilities, approx. 31 minutes of flight time. q. DJI AVATA, UAS with 4K camera, weighs approx. 410 grams. Has video recording capabilities, approx. 18 minutes of flight time. r. DJI AVATA 2, UAS with 4K camera, weighs approx. 377 grams. Has video recording capabilities, approx. 23 minutes of flight time. Purpose To be deployed when its view would assist officers or incident commanders with the following situations, which include but are not limited to:  Major collision investigations  Search for missing or wanted persons  Fires  Major incidents  Calls for service  Natural disaster management  Crime scene photography  SWAT, tactical or other public safety and life preservation missions  In response to specific requests from local, state, or federal fire authorities for fire response and/or prevention Authorized Use Page 261 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 6 Updated 04/03/2026 Only assigned UAS operators who have completed the required training shall be permitted to operate any of the Unmanned Aerial Systems. Expected Lifespan All UAS equipment, 3- 5 years. Quantity, Cost, and Fiscal Impact (with photos) Unmanned Remotely Piloted, Powered Aerial or Ground Vehicles Unmanned Aircraft Systems (UAS) Equipment Name and Model / Manufacturer Quantity Initial Cost (Per Unit) Fiscal Impact (FY 25 & 26) (Approx. for maintenance and repair) DJI MAVIC MINI 2 DJI INSPIRE 2 DJI MAVIC 2 ENTERPRISE DJI MAVIC 2 ENTERPRISE ADVANCED Page 262 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 7 Updated 04/03/2026 DJI Matrice 4T 1 $7,999 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment). DJI M300 with H30T 7 $25,000 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment). DJI M350 with H30T 1 $25,000 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment). Page 263 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 8 Updated 04/03/2026 DJI Box 3 with DJI Matrice 4TD 8 $23,665 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment). DJI M210v2 with z30 2 $32,000 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment). DJI PHANTOM 4 1 $1600 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment). DJI MAVIC 2 ZOOM 1 $1999 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment). Page 264 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 9 Updated 04/03/2026 DJI MAVIC PRO 1 $1289 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment). SKYDIO 2 4 $999 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment. SKYDIO X2 (Color/Thermal 2 $14,499 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment). PARROT ANAFI 1 $2000 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment). Page 265 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 10 Updated 04/03/2026 BRINC LEMUR S 2 $22,996 $50,000 Maintenance and battery replacement cost for the entire drone fleet. (Includes all UAS equipment). DJI AVATA DJI AVATA 2 Training All Department UAS operators are licensed by the Federal Aviation Administration for UAS Operation. In addition, each operator must attend monthly ongoing training. Legal and Procedural Rules Use is established under PDM 613 – UAS Operations, and the FAA Regulation 14 CFR Part 107. It is the policy of the CVPD to utilize UAS only for official law enforcement purposes, and in a manner that respects the privacy of our community, pursuant to the City’s privacy and technology policies, along with State and Federal Law. Page 266 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 11 Updated 04/03/2026 Operational Use for 2025-2026 From January 1, 2025, through January 1, 2026, the following UAS flights occurred:  Approximately 2,783 flights for Drone as First Responder (DFR)  Approximately 160 field tactical deployments. Field tactical deployments include crime scene mapping, looking for missing people or dangerous subjects. Additionally, UAS team supported SWAT on (2) missions. 2025-2026 UAS Acquisitions CVPD anticipates additional drone purchases in 2026 for the already approved drone fleet. The cost and models of drone purchases are currently unknown. However, drone purchases will be up to $50,000 and funding will come from the Chula Vista Police Foundation or from police asset seizure funds. Any new acquisitions of drones will be used as previously approved by City Council and pursuant to the already established Military Equipment Use Policy and AB 481. UAS Personnel Costs  The CVPD DFR program includes full-time positions for (1) police lieutenant, (1) police sergeant, (2) police officer pilots, and contract staffing (Flying Lion).  The DFR program is funded through Measure A with an annual cost of $1.5 million. Complaints/Policy Violations No UAS complaints or policy violations for this reporting period. 2. Robot: An unmanned ground-based machine along with the associated equipment necessary to control it remotely. Description and capabilities: a. ROBOTEX AVATAR III, the Robotex Avatar III is a heavy-duty robot. It has stair climbing ability and an arm capable of remote manipulation. The Avatar III also offers multiple communications options, a chassis and manipulator that allow for accessories and tool combinations. The robot is primarily deployed as a tool for the SWAT Team; however, it can be used for other authorized patrol functions. It operates as a de-escalation tool in a variety of capacities (see Purpose section below). Purpose To be deployed when its use would assist officers or incident commanders with the following situations, which include but are not limited to:  Remotely gain visual/audio data  Deliver phone during hostage/barricaded subject negotiations  Open doors  Disrupt suspicious/dangerous packages  Training/authorized public exhibition Page 267 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 12 Updated 04/03/2026 Authorized Use Only sworn personnel who have been trained on the robot’s function, use, and capabilities shall be permitted to operate the robot. Expected Lifespan Robot and arm attachment, 8-10 years. Quantity, Cost, and Fiscal Impact Unmanned Remotely Piloted, Powered Aerial or Ground Vehicles Robots Equipment Name and Model / Manufacturer Quantity Initial Cost (Per Unit) Fiscal Impact (FY 25 & 26) (Approx. for maintenance and repair) ROBOTEX AVATAR III Training All robot operators must complete in-house training in the use, function, and deployment of the robot by trained robot operators. Legal and Procedural Rules The use of the robot is for official law enforcement purposes only, and in a manner that respects the privacy of our community, pursuant to the City’s privacy and technology policies, along with State and Federal Law. Operational Use for 2025-2026  The Robotex Avatar robot was not used during this reporting period. Complaints/Policy Violations No robot complaints or policy violations for this reporting period. B. Command and Control Vehicles 1. Mobile Command Post (CP): A mobile office that provides shelter, police equipment, access to Police Department computer systems, and restroom facilities on extended events. Page 268 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 13 Updated 04/03/2026 Description and capabilities: a. INTERNATIONAL 4400 MOBILE COMMAND POST (CP) can also be utilized for SWAT/CNT and other critical incidents, preplanned large events, searching for missing persons, natural disasters, and community events. Purpose To be used based on the specific circumstances of a given critical incident, large event, natural disaster, or community event that is taking place. Authorized Use The CP shall be operated by officers trained in their deployment and in a manner consistent with State Law regarding the operation of motor vehicles. Furthermore, only officers who have completed the California Class B Commercial driver training provided by the Department and properly licensed will be permitted to drive the CP. Expected Lifespan 20-year lifespan on chassis and 10-year warranty on vehicle structure. Quantity, Cost, and Fiscal Impact Command and Control Vehicles Equipment Name and Model / Manufacturer Quantity Initial Cost (Per Unit) Fiscal Impact (FY 25 & 26) (Approx. for maintenance and repair) International 4400 Mobile Command Post Training All drivers shall receive training in the safe handling of the vehicle on a closed training course. Once the driver has shown competence in the vehicle handling, the driver will operate the vehicle throughout the city with an experienced driver. Drivers shall also undergo California Department of Motor Vehicles Page 269 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 14 Updated 04/03/2026 commercial vehicle testing. In addition, each driver shall attend bi-yearly training as authorized by the Department. Legal and Procedural Rules It is the policy of Department to use the CP only for official law enforcement purposes, and in accordance with State law regarding the operation of motor vehicles. 2. SWAT Equipment Truck: A mobile storage unit/preparation area that provides SWAT members access to equipment and uniforms during critical events. Description and capabilities: a. Freightliner M2 106 chassis (custom build), The SWAT equipment truck is used as a mobile storage unit and is deployed to critical incidents to provide SWAT team members with rapid access to necessary equipment. Purpose To be used based on the specific circumstances of a given critical incident, large event, natural disaster, or community event that is taking place. Authorized use The equipment truck shall be used by officers trained in its deployment and in a manner consistent with Department training. Officers with a valid California Class C license may operate the equipment truck. Expected lifespan The Equipment Truck, 20-year lifespan on chassis, lifetime warranty on vehicle structure. Upgrades needed after 12 years of purchase to maintain IT systems. Quantity, Cost, and Fiscal Impact Command and Control Vehicles Equipment Name and Model / Manufacturer Quantity Initial Cost (Per Unit) Fiscal Impact (FY 25 & 26) (Approx. for maintenance and repair) Freightliner M2 106 chassis (custom build) SWAT equipment truck Page 270 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 15 Updated 04/03/2026 Training Drivers shall receive training in the safe handling of the vehicle by a Department-qualified driver. Once the driver has shown competence in vehicle handling, the driver may operate the vehicle for authorized use. Legal and Procedural Rules The equipment truck shall be deployed for authorized use and operated in accordance with California State Law regarding the operation of motor vehicles. Operational Use for 2025-2026  The Mobile Command Vehicle was used 3 times during this reporting period. All uses were for special event support.  The SWAT Command Vehicle was used 4 times during this reporting period. All uses were for SWAT callouts. Complaints/Policy Violations No command vehicle complaints or policy violations for this reporting period. C. Armored Personnel Carriers 1. Armored vehicle: Commercially produced wheeled armored vehicle utilized for law enforcement purposes. Description and capabilities: a. 2011 LENCO BEARCAT G2, The Lenco Bearcat, G2, is an armored vehicle that seats 10-12 personnel with an open floor plan that allows for safe rescue of injured citizens and officers. It can stop various projectiles, which provides greater safety to citizens and officers beyond the protection level of shield and personal body armor. Purpose To be used in response to critical incidents to enhance officer and community safety, improve scene containment and stabilization, and assist in resolving critical incidents. The vehicle may also be used during formal training or community demonstrations with approval from the Watch Commander, SWAT Commander, or a SWAT Team Leader. Authorized Use The use of armored vehicles shall only be authorized by a sworn supervisor or manager based on the specific circumstances of a given critical incident. Officers may deploy the armored vehicle during exigent circumstances, such as officer/citizen rescues, without prior approval. If deployed under exigent circumstances, a supervisor shall be notified as soon as practical. Armored vehicles Page 271 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 16 Updated 04/03/2026 shall only be used by officers trained in their deployment and in a manner consistent with Department training. Expected lifespan Lenco Bearcat model G2 – 25 years. Quantity, Cost, and Fiscal Impact Armored Personnel Carriers Equipment Name and Model / Manufacturer Quantity Initial Cost (Per Unit) Fiscal Impact (FY 25 & 26) (Approx. for maintenance and repair) 2011 LENCO BEARCAT G2 Training The driver shall receive training in the safe handling of the vehicle by a Department-qualified driver. Once the driver has shown competence in vehicle handling, the driver may operate the vehicle for authorized use. Legal and Procedural Rules All drivers/operators shall be sworn personnel and possess a valid class C driver’s license. The vehicle shall be operated in accordance with State Law regarding the operation of motor vehicles. Operational Use for 2025-2026  The armored personnel vehicle was used 17 times during this reporting period. Uses include SWAT responses in the City of Chula Vista, uses for Patrol assist with wanted/barricaded/gun related calls for service, and uses for special event support. Complaints/Policy Violations No armored vehicle complaints or policy violations for this reporting period. Page 272 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 17 Updated 04/03/2026 D. Specialty Impact Munition Weapons (SIM) and Associated Munitions 1. 40 MM Launchers and Munitions: 40 MM launchers are utilized by SWAT personnel as a less lethal tool to launch less lethal impact and chemical agent rounds. Description and capabilities: a. DEFENSE TECHNOLOGY, 40 MM LMT TACTICAL SINGLE LAUNCHER #1426, the 40 MM LMT Tactical Single Launcher is a tactical single shot launcher. It will fire standard 40 MM less lethal ammunition, up to 4.8 inches in cartridge length. It will launch a 40 MM less lethal round up to 131 feet and is only authorized to be used by trained SWAT personnel. b. DEFENSE TECHNOLOGY, FERRET 40 MM LIQUID BARRICADE PENETRATOR MUNITION #2262, a less lethal 40 MM round used to penetrate barriers, such as windows, hollow core doors, wallboard, and thin plywood. Upon impacting the barrier, the nose cone ruptures and instantaneously delivers a small chemical payload inside of a structure or vehicle. In a tactical deployment situation, the 40 MM Ferret is primarily used to dislodge barricaded subjects from confined areas. Its purpose is to minimize the risks to all parties through temporary discomfort, pain compliance, and/or incapacitation of potentially violent or dangerous subjects. c. DEFENSE TECHNOLOGY, EXACT IMPACT 40 MM STANDARD RANGE SPONGE ROUND #6325, the Exact Impact 40 mm sponge round is a point-of-aim, point-of-impact direct-fire round. It is a lightweight, high-speed projectile consisting of a plastic body and sponge nose that is spin stabilized via the incorporated rifling collar and the 40 mm launcher’s rifled barrel. Its purpose is to minimize the risks to all parties through temporary discomfort, pain compliance, and/or incapacitation of potentially violent or dangerous subjects. d. COMBINED TACTICAL SYSTEMS (CTS) 4557 40MM SPONGE ROUND is the same category and function of munition (a 40mm direct-impact sponge round) manufactured by Combined Tactical Systems (CTS). The CTS 4557 is designed for deployment from existing Department-authorized 40mm launcher platforms and does not require the purchase of new weapon systems. It provides the same operational purpose as the currently used Defense Technology 6325: delivering a less-lethal impact option intended to gain compliance or stop assaultive behavior when objectively reasonable and consistent with Department use-of-force policy. Purpose To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Authorized Use Situations for use of the less lethal weapon systems may include, but are not limited to:  Self-destructive, dangerous and/or combative individuals.  Riot/crowd control and civil unrest incidents. Page 273 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 18 Updated 04/03/2026  Circumstances where a tactical advantage can be obtained.  Potentially vicious animals.  Training exercises or approved public exhibitions. Expected lifespan a. Defense Technology Model 2262 Liquid Barricade Penetrator - 5 years Quantity, Cost, and Fiscal Impact Specialty Impact Munition Weapons (SIM) 40 MM Launchers Equipment Name and Model / Manufacturer Quantity Initial Cost (Per Unit) Fiscal Impact (FY 25 & 26) (Approx. for maintenance and repair) DEFENSE TECHNOLOGY, 40 MM LMT TACTICAL SINGLE SHOT LAUNCHER #1426 $50 per unit Specialty Impact Munition Weapons (SIM) Projectiles DEFENSE TECHNOLOGY, FERRET 40 MM LIQUID BARRICADE PENETRATOR MUNITION #2262 $0 DEFENSE TECHNOLOGY, EXACT IMPACT 40 MM STANDARD RANGE SPONGE ROUND #6325 $0 Page 274 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 19 Updated 04/03/2026 COMBINED TACTICAL SYSTEMS (CTS) 4557 40MM SPONGE ROUND 0 $22.69 (Requesting to purchase 40 rounds @ $22.69/each = $907.60 total) Training Sworn members utilizing 40 MM less lethal chemical agents or impact rounds are trained in their use by POST certified less lethal or chemical agent instructors. SWAT personnel receive additional training annually. SWAT operators who utilize these munitions have successfully completed a POST approved chemical agent school, SWAT academy and/or have been trained in-house by POST certified chemical agent instructors. Legal and Procedural Rules Use is established under the CVPD PDM 308 - Control Devices and Techniques policy and PDM 300 - Use of Force policy. It is the policy of the CVPD to utilize the less lethal Specialty Impact Munitions (SIMS) and associated munitions for official law enforcement purposes, and pursuant to State and Federal Law, including those regarding the use of force. Operational Use for 2025-2026  The Defense Technology 40mm #2262 Ferret round was used (10) times during this reporting period. All uses were for training at the SWAT Academy and Instructor’s Course.  The Defense Technology 40mm #6325 Exact Impact round was used (10) times during this reporting period. All uses were for training at the SWAT Academy and Instructor’s Course. Complaints/Policy Violations No 40MM complaints or policy violations for this reporting period. Acquisitions for 2026 The Chula Vista Police Department SWAT Team is requesting approval to add the CTS 4557 40mm Sponge Round less-lethal munition. This item is not currently in the Department’s inventory. We are requesting to purchase 40 rounds @ $22.69/each = $907.60 total. 2. SIM barrel conversion kits and SIM training projectiles: A designated barrel or bolt used in a standard firearm or handgun that when fired only discharges specially designed SIM paint marking rounds. The conversion kits do not permit the weapon to fire standard ammunition. These are non- operational rounds and non-operational weapons systems. They are used for training purposes only. Description and capabilities: Page 275 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 20 Updated 04/03/2026 a. FORCE ON FORCE 5.56MM MARKER BOLT ASSEMBLIES, the bolt assembly includes a bolt carrier group that converts the AR-15/M4 rifle into effective weapons designed to fire force on force 5.56mm paint marker rounds and prevent the firing of lethal ammunition. These bolts are used for training only. b. SIMUNITION SIG SAUER P226 CONVERSION KIT, the Simunition Conversion Kit includes a barrel and ramp that converts the Sig Sauer P226 Pistol into an effective training weapon designed to fire force on force 9mm marker rounds and prevent the firing of lethal ammunition. These conversion kits are used for training only. c. SIMUNITION SIG SAUER P320 CONVERSION KIT, the Simunition Conversion Kit includes a barrel and ramp that converts the Sig Sauer P320 Pistol into an effective training weapon designed to fire force on force 9mm marker rounds and prevent the firing of lethal ammunition. These conversion kits are used for training only. d. SIMUNITION SMITH & WESSON M&P CONVERSION KIT, the Simunition Conversion Kit includes a barrel and ramp that converts the Smith & Wesson M&P Pistol into an effective training weapon designed to fire force on force 9mm marker rounds and prevent the firing of lethal ammunition. These conversion kits are used for training only. e. FORCE ON FORCE 5.56 MM PAINT MARKING ROUNDS, non-operational munition for training purposes only. Paint Marking round designed to be used with the SIM conversion kits during training exercises. These rounds are used for training only. f. FORCE ON FORCE 9 MM PAINT MARKING ROUINDS, non-operational munition for training purposes only. Paint Marking round designed to be used with the SIM conversion kits during training exercises. These rounds are used for training only. Purpose These systems and munitions provide for realistic close quarters firearms training while allowing the shooter to visually assess shot placement and accuracy in force-on-force training scenarios. Authorized Use Rifle caliber SIMs (5.56mm) are used exclusively by SWAT for training purposes only. Pistol caliber SIMs (9mm) are used by SWAT and other sworn personnel for in-service training. Expected lifespan 5.56mm bolt assembly – Frequency of use. 5-year limited warranty 5.56mm SIM rounds – At least 5 years. 9mm barrel assembly – Frequency of use. 5-year limited warranty 9mm SIM rounds – At least 5 years. Quantity, Cost, and Fiscal Impact Page 276 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 21 Updated 04/03/2026 Specialty Impact Munition Weapon (SIM) barrel conversion kits and training projectiles (FOR TRAINING ONLY) FORCE ON FORCE 5.56MM MARKER BOLT ASSEMBLIES $0 SIMUNITION SIG SAUER P226 CONVERSION KITS SIMUNITION SIG SAUER P320 CONVERSION KITS $0 SIMUNITION SMITH & WESSON M&P CONVERSION KIT FORCE ON FORCE 5.56 MM PAINT MARKING ROUNDS Currently have less than 7 cases. Requests to purchase qty 15 cases (500 rounds per case = 7,500 rounds) @ $384 each = $5,760.00. Page 277 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 22 Updated 04/03/2026 FORCE ON FORCE 9MM PAINT MARKING ROUNDS Less than 19 cases (9,050 rds) $384.00 Currently have slightly less than 19 cases. Training Sworn personnel are given extensive firearms handling courses and weapons safety instruction to include the use of SIMs for training purposes. Legal and Procedural Rules These systems are for training purposes only. Users will wear protective gear or clothing and only operate the equipment in a controlled training environment and when safe to do so. Operational Use for 2025-2026  This equipment was only used for training purposes during this reporting period. Complaints/Policy Violations There were no complaints or policy violations regarding the use of SIMS during this reporting period. Acquisitions for 2026  Request to purchase Force on Force 5.56mm Marking Rounds to further accommodate department mandatory firearms and tactical training. Quantity 8 @ 459.00 each = $5,390.00. E. PepperBall Launchers and Associated Projectiles: 1. PepperBall launcher and projectiles: A device that discharges projectiles containing pepper powder and glass breaking projectiles. Page 278 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 23 Updated 04/03/2026 Description and capabilities: a. PepperBall VKS CARBINE, the Variable Kinetic System (VKS) is a compressed-air powered launcher designed to fire non-lethal PepperBall projectiles. The PepperBall VKS Carbine features a dual feed system that offers the ability to quickly switch between hopper mode for optimum versatility. b. PepperBall SX CARBINE, the SX carbine, is a compressed air-powered launcher designed to fire non-lethal PepperBall projectiles. The PepperBall SX is a gravity fed system which allows for a firing rate of 10-12 rounds per second. c. PepperBall LIVE-X PROJECTILE, the Live-X Projectile contains a concentrated amount of PAVA pepper powder. One round of LIVE-X contains the equivalent to 10 standard PepperBall rounds. Discharged from a PepperBall Launcher, the projectile has a velocity of 280-350 FPS. The projectile has a direct impact of 60ft and an area of saturation of 150+ft. The projectile contains 5% PAVA powder. d. PepperBall GLASS BREAKER PROJECTILE, a solid polymer projectile used for breaking residential windows and side-glass of automobiles. Not for use on humans. Discharged from a PepperBall launcher, the projectile has a velocity of 280-350 FPS. The projectile has a direct impact of 60ft and an area of saturation of 150+ft. Purpose To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include, but are not limited to:  Self-destructive, dangerous and/or combative individuals.  Riot/crowd control and civil unrest incidents.  Circumstances where a tactical advantage can be obtained.  Potentially vicious animals.  Training exercises or approved demonstrations. Authorized Use Only those officers who have been trained in the use of PepperBall launchers are authorized to use the PepperBall launchers. Expected lifespan PepperBall VKS Carbine- 20 years Pepperball Carbine SX- 10 years PepperBall Live-X Projectile- 3 years PepperBall Glass Breaker Projectile- 3 years Quantity, Cost, and Fiscal Impact Page 279 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 24 Updated 04/03/2026 PepperBall Launchers and Associated Projectiles Equipment Name and Model / Manufacturer Quantity Initial Cost (Per Unit) Fiscal Impact (FY 25 & 26) (Approx. for maintenance and repair) PepperBall VKS CARBINE 2 $849 $50 (per unit) PepperBall CARBINE SX 5 $730 $30 (per unit) PepperBall LIVE-X PROJECTILE 1,830 2.99 (per projectile) $0 PepperBall GLASS BREAKER PROJECTILE 50 $2.43 (per projectile) $0 Page 280 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 25 Updated 04/03/2026 Training Sworn members utilizing PepperBall launchers and projectiles are trained in their use by POST certified less lethal and chemical agent instructors. Legal and Procedural Rules Use is established under PDM – 308 Control Devices and Techniques policy and PDM 300 Use of Force. It is the policy of the CVPD to utilize PepperBall only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force. Operational Use for 2025-2026  The PepperBall equipment was deployed by officers (19) times during this reporting period. (10) uses were during SWAT missions, and (9) uses were during Patrol calls for service. Complaints/Policy Violations There were no complaints or policy violations regarding the use of PepperBall during this reporting period. F. Less Lethal Shotguns and related munitions 1. Less Lethal Shotgun and Munitions: Less Lethal Shotgun is used to deploy the less lethal 12- gauge Super-Sock Beanbag Round. The shotgun is designed as a less lethal tool and is painted bright orange to distinguish itself from other weapons systems. Description and capabilities: a. REMINGTON 870 LESS LETHAL SHOTGUN, the Remington 870 Less Lethal Shotgun is used to deploy the less lethal 12-gauge Super Sock Beanbag Round up to a distance of 75 feet. The range of the weapon system helps to maintain space between officers and a suspect, reducing the immediacy of the threat which is a principle of De-escalation. b. 12-GAUGE CTS SUPER SOCK BEANBAG ROUND, a less lethal 2.4 inch 12-gauge shotgun round firing a ballistic fiber bag filled with 40 grams of lead shot at a velocity of 270-290 FPS. CTS Super-Sock rounds are discharged from a dedicated 12-gauge shotgun that is distinguishable by an orange butt stock and foregrip. This round provides accurate and effective performance when fired from the approved distance of not fewer than five (5) feet. The maximum effective range of this munition is up to 75 feet from the target. The Model 2581 Super-Sock is in its deployed state immediately upon exiting the barrel. It does not require a minimum range to “unfold” or “stabilize.” The Super-Sock is an aerodynamic projectile. However, accuracy is relative to the shotgun, barrel length, environmental conditions, and the operator. The Super-Sock is very accurate. However, Page 281 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 26 Updated 04/03/2026 effectiveness depends on many variables, such as distance, clothing, stature, weather, and the point where the projectile impacts. Purpose To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Authorized Use Situations for use of the less lethal weapons systems may include, but are not limited to:  Self-destructive, dangerous and/or combative individuals.  Riot/crowd control and civil unrest.  Circumstances where a tactical advantage can be obtained.  Potentially vicious animals.  Training exercises or approved demonstrations. Expected lifespan Remington 870 Less Lethal Shotgun - 25 years. Super Sock Round - No listed expiration date. Quantity, Cost, and Fiscal Impact Less Lethal Shotguns and related munitions Equipment Name and Model / Manufacturer Quantity Initial Cost (Per Unit) Fiscal Impact (FY 25 & 26) (Approx. for maintenance and repair) REMINGTON 870 LESS LETHAL SHOTGUN 12-GAUGE CTS SUPER SOCK BEANBAG ROUND Page 282 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 27 Updated 04/03/2026 Training All officers are trained in the 12-gauge less lethal shotgun as a less lethal option by Department training personnel. Legal and Procedural Rules Use is established under PDM 308 - Control Devices and Techniques and PDM 300 - Use of Force. It is the policy of the CVPD to only utilize the less lethal shotgun for official law enforcement purposes, and pursuant to State and Federal Law, including those regarding the use of force. Operational Use for 2025-2026  The Less Lethal Beanbag Shotgun was deployed (7) times and the total number of Super Sock Beanbag rounds deployed was (25) during this reporting period. Patrol deployed (21) Super Sock Beanbag rounds over (5) incidents and SWAT deployed (4) Super Sock Beanbag rounds over (2) missions. Additionally, (75) Super Sock Beanbag rounds were used for training of personnel. Complaints/Policy Violations There were no complaints or policy violations regarding the use of Less Lethal Shotgun and Munitions during this reporting period. Acquisitions for 2024-2025 Due to the expansion of the vehicle fleet, we purchased an additional (15) Remington 870 Less Lethal Shotguns. G. Chemical Agents (non-munition) 1. Chemical Agent Canisters: Canisters that contain chemical agents that are released when deployed. Description and capabilities: a. DEFENSE TECHNOLOGY, FLAMELESS TRI-CHAMBER CS GRENADE #1032, The design of the Tri-Chamber Flameless CS Grenade allows the contents to burn within an internal can and disperse the agent safely with reduced risk of fire. The grenade is designed primarily for indoor tactical situations to detect and/or dislodge a barricaded subject. This grenade will deliver approximately .70 oz. of agent during its 20-25 second burn time. The Tri- Chamber Flameless Grenade can be used in crowd control as well as tactical deployment situations by law enforcement and corrections but was designed with the barricade situation in mind. Its applications in tactical situations are primarily to detect and/or dislodge barricaded subjects. The purpose of the Tri-Chamber Flameless Grenade is to minimize the risks to all parties through pain compliance, temporary discomfort, and/or incapacitation of potentially violent or dangerous subjects. The Tri-Chamber Flameless Grenade provides the option of delivering a pyrotechnic chemical device indoors, Page 283 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 28 Updated 04/03/2026 maximizing the chemical’s effectiveness via heat and vaporization, while minimizing or negating the chance of fire to a structure. The Tri-Chamber Flameless Grenade is NOT to be launched utilizing a launching cup. b. DEFENSE TECHNOLOGY, SPEDE-HEAT CONTINUOUS DISCHARGE CS GRENADE #1072, the Spede-Heat™ CS Grenade is a high volume, continuous burn. It expels its payload in approximately 20-40 seconds. The payload is discharged through four gas ports on top of the canister, three on the side and one on the bottom. This launchable grenade is 6.12 in. by 2.62 in. and holds approximately 2.9 oz. of active agent. c. DEFENSE TECHNOLOGY, RIOT CONTROL CONTINUOUS DISCHARGE CS GRENADE #1082, the Riot Control CS Grenade is designed specifically for outdoor use in crowd control situations with a high-volume continuous burn that expels its payload in approximately 20-40 seconds through four gas ports located on the top of the canister. This grenade can be used to conceal tactical movement or to route a crowd. The volume of smoke and agent is vast and obtrusive. This launchable grenade is 6.0 in. by 2.35 in. and holds approximately 2.7 oz. of active agent. d. DEFENSE TECHNOLOGY, TRIPLE-CHASER SEPARATING CS CANISTER #1026, the Triple- Chaser CS consists of three separate canisters pressed together with separating charges between each. When deployed, the canisters separate and land approximately 20 feet apart allowing increased area coverage in a short period of time. This grenade can be hand thrown or launched from a fired delivery system. The grenade is 6.5 in. by 2.7 in. and holds an approximately 3.2 oz. of active agent payload. It has an approximate burn time of 20-30 seconds. e. COMBINED TACTICAL SYSTEMS (CTS) BAFFLED CS CANISTER GRENADE #5230B, the design of the CTS Baffled CS Canister Grenade allows the contents to burn and disperse a very high volume of CS irritant agent safely with a very minimal risk of fire. The grenade is designed primarily for indoor tactical situations to detect and/or dislodge a barricaded subject. This grenade expels its payload through four emission ports in approximately 20- 40 seconds. f. COMBINED TACTICAL SYSTEMS (CTS) MODEL 5230 CS GRENADE is a pyrotechnic, rapid-burning CS canister designed for outdoor crowd control and tactical dispersal applications. Manufacturer specifications indicate an approximate combustion temperature of 1,200°F (approximately 650°C) at peak burn. For comparison, the Defense Technology Spede-Heat CS Grenade is designed as a high-output, high-temperature dispersal device and has a peak burn temperature of approximately 1,500°F (approximately 815°C). This reflects an approximate reduction of 300°F in peak burn temperature when moving to the CTS 5230 platform from current CS Grenades utilized by the CVPD SWAT Team. g. COMBINED TACTICAL SYSTEMS (CTS) 6210 WHITE SMOKE CANISTER GRENADE is an outdoor smoke canister grenade designed to discharge a high volume of white smoke through multiple emission ports to obscure vision, conceal movement, and assist with signaling or marking objective areas during tactical operations. The primary operational purpose of the CTS 6210 is vision obscuration in open environments. A key example of its intended use includes supporting downed officer or citizen rescue operations in open areas Page 284 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 29 Updated 04/03/2026 where deploying a dense smoke screen can temporarily conceal the rescuing element and mitigate risk from potential threats during movement or extraction. Purpose To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include, but are not limited to:  Self-destructive, dangerous and/or combative individuals.  Riot/crowd control and civil unrest incidents.  Barricaded subjects  Circumstances where a tactical advantage can be obtained.  Potentially vicious animals.  Training exercises or approved public exhibitions. Authorized Use Only officers who have received POST certification in the use of chemical agents are authorized to use chemical agents. Expected lifespan 5 years from manufacturing date. Quantity, Cost, and Fiscal Impact Chemical Agents (non-munition) Chemical Agent Canisters Equipment Name and Model / Manufacturer Quantity Initial Cost (Per Unit) Fiscal Impact (FY 25 & 26) (Approx. for maintenance and repair) DEFENSE TECHNOLOGY, FLAMELESS TRI- CHAMBER CS GRENADE #1032 DEFENSE TECHNOLOGY, SPEDE-HEAT CONTINUOUS DISCHARGE CS GRENADE #1072 $0 DEFENSE TECHNOLOGY, RIOT CONTROL CS GRENADE #1082 $0 Page 285 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 30 Updated 04/03/2026 DEFENSE TECHNOLOGY, TRIPLE-CHASER SEPARATING CS CANISTER #1026 8 $39.90 (per canister) $0 COMBINED TACTICAL SYSTEMS (CTS), BAFFLED CS CANISTER GRENADE #5230B 100 $47.52 (per canister) $0 COMBINED TACTICAL SYSTEMS (CTS) MODEL 5230 CS GRENADE 0 $33.29 (per canister) (Requesting to purchase 60 canisters @ $33.29/each = $1997.40 total) COMBINED TACTICAL SYSTEMS (CTS) 6210 WHITE SMOKE CANISTER GRENADE 0 $31.53 (per canister) (Requesting to purchase 10 canisters @ $31.53/each = $315.30 total) Training Sworn members utilizing chemical agent canisters are certified by POST less lethal and chemical agent instructors. Legal and Procedural Rules Page 286 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 31 Updated 04/03/2026 Use is established under the PDM 308.6 – Tear Gas Guidelines and PDM 300 – Use of Force. It is the policy of the CVPD to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force. Operational Use for 2025-2026  Defense Technology, Spede-Heat Continuous Discharge CS Grenade #1072 was deployed (1) time during a SWAT mission.  Defense Technology, Riot Control CS Grenade #1082 was deployed (11) times during the SWAT Academy Training and Instructor’s Course.  Defense Technology, Triple-Chaser Separating CS Canister #1026 was deployed (41) times during the SWAT Academy Training and Instructor’s Course. Complaints/Policy Violations There were no complaints or policy violations regarding the use of tear gas during this reporting period. Acquisitions for 2026 The Chula Vista Police Department SWAT Team is requesting approval to add the CTS 5230 CS grenade as a new chemical agent platform. This item is not currently in the Department’s inventory. We are requesting to purchase 60 canisters @ $33.29/each = $1997.40 total. The Chula Vista Police Department SWAT Team is requesting approval to add the CTS 6210 White Smoke Canister Grenade to its AB 481 inventory as a new tactical support munition. This item is not currently in the Department’s inventory. We are requesting to purchase 10 canisters @ $31.53/each = $315.30 total. H. Diversionary Devices 1. Diversionary Devices “Flashbangs”: Diversionary/distraction devices are ideal for distracting dangerous suspects during hostage rescue, barricaded subjects, room entry or other high-risk incidents. Description and capabilities: a. COMBINED TACTICAL SYSTEMS (CTS), 7290M DIVERSIONARY DEVICE, the CTS 7290M is a serialized steel bodied single use non-bursting canister noise flash diversionary device. The weight is 430 grams. The light output is 2 million candela minimum. The sound output is 165- 175 average decibels. The device produces a thunderous bang with an intense bright light. Ideal for distracting dangerous suspects during hostage rescue, barricaded subjects, room entry or other high-risk incidents. b. COMBINED TACTICAL SYSTEMS (CTS) 7290MT TRAINING DIVERSIONARY DEVICE, the CTS training devices have a re-loadable fuse for repeated training use. These training fuses Page 287 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 32 Updated 04/03/2026 produce lowered sound (120 decibels) and light output than the CTS 7290M diversionary device. c. LIBERTY DYNAMIC ELECTRONIC DIVERSIONARY DEVICE, the Liberty Dynamic Electronic Device has a reloadable fuse for repeated deployment. The digital “smart” fuse can be programed to desired delay length, possesses LED indicator lights which provide device condition feedback, and will render itself safe within 60 seconds if there is a failure upon deployment. The sound output is 184 average decibels. During transport and storage, the fuse and device body are kept separate increasing officer safety. d. LIBERTY DYNAMIC ELECTRONIC DIVERSIONARY TRAINING DEVICE, the Liberty Dynamic Electronic Training Device has a reloadable fuse for repeated training use. These training fuses have similar deployment mechanics as the original devices with a significantly reduced cost. Purpose To produce atmospheric overpressure, a loud report, heat, and brilliant light that may cause short-term physiological and psychological sensory effects to suspects, providing a tactical advantage during high-risk incidents. Authorized Use By SWAT members who have been trained by a qualified instructor in the use and deployment of the device. The devices may be used for any of the following circumstances: CTS 7290M  In hostage and barricaded subject situations  In high-risk warrant (search/arrest) services where there may be extreme hazards to officers and/or the public  During other high-risk situations where their use would enhance officer safety  During controlled training exercises. CTS 7290MT  During controlled training exercises. LIBERTY DYNAMIC ELECTRONIC DIVERSIONARY DEVICE  In hostage and barricaded subject situations  In high-risk warrant (search/arrest) services where there may be extreme hazards to officers and/or the public  During other high-risk situations where their use would enhance officer safety  During controlled training exercises. LIBERTY DYNAMIC ELECTRONIC DIVERSIONARY TRAINING DEVICE  During controlled training exercises Expected lifespan Page 288 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 33 Updated 04/03/2026 All CTS devices have a 5-year manufacturer warranty from their shipment date. Devices that have passed the manufacturer warranty date should not be used except in a training environment. All Liberty Dynamic Electronic Devices have a 2-year manufacturer warranty from their shipment date. They have unlimited use and only require replacement if physical or electronic damage occurs. Quantity, Cost, and Fiscal Impact Diversionary Devices “Flashbangs” Equipment Name and Model / Manufacturer Quantity Initial Cost (Per Unit) Fiscal Impact (FY 25 & 26) (Approx. for maintenance and repair) COMBINED TACTICAL SYSTEMS (CTS), 7290M DIVERSIONARY DEVICE COMBINED TACTICAL SYSTEMS (CTS) 7290MT TRAINING DIVERSIONARY DEVICE LIBERTY DYNAMIC ELECTRONIC DIVERSIONARY DEVICE Page 289 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 34 Updated 04/03/2026 LIBERTY DYNAMIC ELECTRONIC DIVERSIONARY TRAINING DEVICE 24 (Bodies) 108 (Reloads) $115.00 (Bodies) $20.00 (Reloads) $0 Training Prior to use, SWAT team members must attend a POST certified SWAT academy or equivalent training. SWAT team members who have not yet completed an academy may use diversionary devices if they have been trained by a CVPD SWAT team member that has completed a diversionary device instructor school. The SWAT team conducts diversionary device training annually. Legal and Procedural Rules Sworn personnel shall only utilize diversionary devices for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force. Operational Use for 2025-2026  Combined Tactical Systems 7290M devices were used (13) times for SWAT missions, (15) times for training purposes and (1) time during a Patrol call for service during this reporting period. Complaints/Policy Violations There were no complaints or policy violations regarding the use of diversionary devices during this reporting period. Acquisitions for 2026  Request to purchase (96) Liberty Dynamic Electronic Diversionary Devices @ $64.00 = $6,144.00; and (108) Liberty Dynamic Electronic Diversionary Training Devices @ $20.00 = $2,160. I. Specialized Firearms Less than .50 Caliber 1. Assault Rifle: Semi-automatic long-rifle that increases precision and accuracy. Description and capabilities: a. SMITH AND WESSON M&P-10 RIFLE (NOT STANDARD ISSUE), the M&P-10 is a gas operated semi-automatic rifle with an 18-inch barrel that is engineered with a 1/10 twist and fires .308 caliber ammunition. Page 290 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 35 Updated 04/03/2026 b. SMITH & WESSON MP15X RIFLE (DEPARTMENT STANDARD ISSUE), the MP15X is a gas operated semi-automatic rifle with a 16-inch barrel that is engineered with a 1/9 twist and fires 5.56/.223 caliber ammunition. c. COLT M4 LE6946CQB RIFLE (SWAT TRAINING USE ONLY), the M4 LE6946CQB is a gas operated semi-automatic rifle with a 10.3-inch barrel that is engineered with a 1/7 twist and fires 5.56/.223 caliber ammunition. These are assigned to the SWAT equipment truck to be used for training purposes only when officers attend training at SWAT schools/academies. d. DANIEL DEFENSE DDM4 MK18 RIFLE (CURRENT SWAT STANDARD ISSUE), the DDM4 MK18 is a gas operated semi-automatic rifle with a 10.3-inch barrel that is engineered with a 1/7 twist and fires 5.56/.223 caliber ammunition. Purpose: To be used as precision weapons to address threats with more accuracy and/or greater distance than a handgun, if present and feasible. Authorized Use: Unless exigent circumstances exist, only CVPD sworn members who have completed and maintained department training standards may deploy the M&P-10, MP15X, M4 LE6946CQB, and/or DDM4 MK18 rifles. Acquisitions for 2025-2026 A request was made and approved for the purchase of (3) replacement Smith & Wesson MP 15X rifles in 2025, but they have not yet been received. Expected Lifespan: The projected rifle lifespan is determined by frequency of use. However, Smith and Wesson, Colt, and Daniel Defense all provide a limited lifetime warranty. Based on current use; the estimated lifespan for the M&P-10 is 50 years, for the MP15X 20 years, and for the DDM4 10 years. Quantity, Cost, and Fiscal Impact: Specialized Firearms Less than .50 Caliber Assault Rifles Equipment Name and Model / Manufacturer Quantity Initial Cost (Per Unit) Fiscal Impact (FY 25 & 26) (Approx. for maintenance and repair) SMITH AND WESSON M&P- 10 RIFLE .308 CAL (NOT STANDARD ISSUE & SWAT) Page 291 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 36 Updated 04/03/2026 SMITH & WESSON MP15X RIFLE 5.56 CAL (DEPARTMENT STANDARD PATROL ISSUE) 110 $992 $70.00 COLT M4 LE6946CQB RIFLE 5.56 CAL (SWAT TRAINING ONLY) 2 $1,500 $50.00 DANIEL DEFENSE DDM4 MK18 RIFLE 5.56 CAL (SWAT STANDARD ISSUE) 24 $2,083 $50.00 Training: Sworn department members are required to complete annual training and qualifications to operate department rifles. Legal and Procedural Rules: Use is established under PDM 300 - Use of Force. It is the policy of the CVPD to only utilize the rifle for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force. Operational Use for 2025-2026  Daniel Defense DDM4 MK18 Rifles 5.56 cal. (SWAT Standard Issue) were used (3) times during (1) Officer Involved Shooting (OIS) critical incident. Complaints/Policy Violations Pending litigation. Changes In Inventory 2024-2025 Page 292 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 37 Updated 04/03/2026 Due to damaged barrels, upper receivers, and lower receivers; we removed (4) Smith & Wesson MP 15X rifles from the field. Due to the high estimated cost of repairs, these rifles were removed from inventory instead of being repaired. S W A T SWAT is a budgeted assignment and team positions are considered a collateral duty (part-time assignment). Total CVPD SWAT FY 2025/2026 budget = $264,836.00. Conclusion The Chula Vista Police Department is committed to the service and protection of our community. With the dynamic nature of critical incidents, the Department employs a variety of military equipment to assist in the swift and safe resolution to these incidents. As the Department’s inventory of military equipment varies, the possession of the equipment does not warrant its use for every incident. The Department strives to effectively protect the public using the latest advancement in technology and equipment while also being transparent with the military equipment use and inventory. Page 293 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda From:Margaret Baker To:CityClerk Subject:Public Comment on Agenda Item 7.1: Annual Military Equipment Report Date:Tuesday, April 21, 2026 11:52:42 AM You don't often get email from Learn why this is important WARNING - This email originated from outside the City of Chula Vista. Do not click any links and do not open attachments unless you can confirm the sender. PLEASE REPORT SUSPICIOUS EMAILS BY USING THE PHISH ALERT REPORT BUTTON or to reportphishing@chulavistaca.gov Dear City Clerk, I am writing on behalf of South Bay People Power to provide public comment on Agenda Item 7.1, the proposed AB 481 Report and policies being considered by our City Council this evening. Could you please forward our memo below to the Mayor and all Council members and their aides? Thank you. Dear Mayor and Councilmembers, On behalf of South Bay People Power, I am writing to express our concerns regarding the proposed Military Equipment Report and Use Policies prepared by the Chula Vista Police Department. We urge a “no” vote until necessary revisions are made to bring Chula Vista’s policies into compliance with state law and best practices. We fervently call on you to support our longstanding desires for community safety without more weapons. California law clearly affirms that the local governing body serves as the “first level of accountability” regarding non-compliance with AB 481 by a local law enforcement agency (Memorandum to California City Councils, City Attorneys, County Boards of Supervisors, County Counsels from ACLU of Northern California and American Friends Service Committee, dated October 20, 2025). While the CVPD may propose and carry out policies and practices related to military equipment acquisition and use, our City Council is ultimately responsible. Thus we expect that you will not give blanket approval. Here is a critical issue that needs to be changed BEFORE approval of the 2025 AB 481 Report and proposed amendment to Policy 714: AB 481 makes no provision for acquisition of military equipment in “exigent circumstances”, as outlined in the proposed amendment to CVPD’s military equipment policy. If Chula Vista City Council decided to approve this policy, it should do so consistent Written Communications Item No. 7.1 Baker 4-21-26 Page 294 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda with AB 481 requirements for necessity, cost-effectiveness and protection of civil liberties. This would require (as other departments have done) clear definition of several terms in this provision, which in the proposal are not clear. Definitions needed Equipment that may be acquired without City Council approval as required by AB 481: currently the only definition is that CVPD owns those types of equipment. This could be robots, armored vehicles, rubber bullets, drones (all of which CVPD currently owns), which will not be consumed during unusual activity such as prolonged critical moments. The amendment should restrict exigent purchases to equipment that is consumable. (See the National City Police Department military equipment policy.) Circumstances in which exigent purchases are permitted: The proposed amendment says only "events such as riots, mutual aid, pro-longed critical incidents, etc.” The “etc.” in this phrase means that pretty much any circumstance could be argued to be exigent. The requirement for authorization by elected officials to use large amounts of weapons is meant to temper excessive use of such weapons that the community would find objectionable. Berkeley has a definition of exigent circumstances: "Exigent Circumstances" means a law enforcement agency’s good faith belief that an emergency involving the danger of, or imminent threat of death or serious physical injury to any person requires the use of unapproved Controlled Equipment. Reporting and authorization for unauthorized purchases within a short period. Other departments that have created a provision for exigent purchases require reporting to the governing body within a shorter period than a year. Typically this would be 30 days (Oakland Police Department and Berkeley Police Department). Fairfield Police Department restricts exigent purchases to the process of seeking grants for equipment and requires that "The Department shall obtain council approval as soon as practicable.” We would also like to remind you that you can postpone your vote, in order to make the necessary changes to the proposed policy change. This would also allow for the public to provide additional input during the community engagement meeting scheduled for later this month. Only nine community members were able to attend the first “public forum” which was held during work hours and INSIDE the police department rather than at a more convenient time and a neutral location. Some attendees reported they felt intimidated entering the police station, waiting in line to check-in before entering the meeting room. Attendees pointed out that the time, location, and outreach were not geared to maximize accessibility and engagement of community members, and also that there seemed to be no method for documenting the questions and comments raised at the meeting. We strongly urge you to postpone governing body consideration of the annual report until AFTER “well-publicized and conveniently located” community engagement meetings and to request reporting that provides substantive input from those meetings. Please feel free to reach out for additional clarification of these critical issues. Sincerely, Page 295 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Margaret A. Baker, DrPH South Bay People Power promotes social justice through nonpartisan civic engagement. Page 296 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Annual Report of CVPD’s Military Equipment Use As Required By CA Assembly Bill 481 (AB481) CHULA VISTA POLICE DEPARTMENT Presented by Page 297 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda INTRODUCTIONS Lamar Barrett, Police Captain Joel Monreal, Police Lieutenant (SWAT Commander) 2 Joel MonrealJoel Monreal Page 298 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda GOAL OF THIS PRESENTATION •To outline and explain the current uses for military- style equipment utilized by the Chula Vista Police Department. •To describe the need and importance for this equipment, which is to maintain public safety and provide the highest quality of police service to our community. •To provide an annual report to City Council on military-style equipment required by AB481. 3Page 299 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda WHAT IS MILITARY EQUIPMENT? •Commonly used police equipment that was redefined by the California State Legislature under AB481. •This includes command vehicles, drones, less lethal tools, and other equipment already used by the CVPD. •None of the equipment used by the CVPD was obtained from the military and we do not participate in the federal 1033 Surplus Military Equipment Program. 4Page 300 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda WHY IS THIS EQUIPMENT IMPORTANT? •To protect life and safeguard the community. •To de-escalate and bring a safe resolution to critical incidents. •To properly equip our officers so they can safely perform their jobs. 5Page 301 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda CHULA VISTA POLICE EQUIPMENT GUIDELINES Military equipment, as defined by AB481, shall only be used under the following circumstances: •The employee has completed all applicable training, including Peace Officer Standards and Training (POST) courses or any other training required by law. •This equipment is used because there is no reasonable alternative that can achieve the same objective for both community and officer safety. 6Page 302 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda UNMANNED AERIAL SYSTEMS (UAS) •Our Department UAS inventory contains 46 drones (18 models). •It is the policy of the CVPD to utilize UAS for official law enforcement purposes only, and in the manner that respects the privacy of our community, pursuant to State and Federal Law. •Our UAS program has been safely operating drones since 2018. 7Page 303 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda ROBOT The Chula Vista Police Department possesses one Robot: ROBOTEX AVATAR III. •Provides officers with the ability to remotely search dangerous locations and communicate with armed or violent subjects. •SWAT team and trained sworn personnel have been using the robot since 2013. 8Page 304 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 9 UNCREWED AERIAL SYSTEMS AND ROBOT (ANNUAL EQUIPMENT REPORT) January 1, 2025 –January 1, 2026 (Equipment type)(Use)(Complaints)(Policy Violations)(Quantity)(Additional Acquisitions) (Approximate Annual Cost) UAS 2,945 Flights DFR-2,783 Field Tactical-160 SWAT Use-2 0 0 46 10 (2025) TBD (2026) $75,000.00 Maintenance & Battery Replacement ROBOT 0 0 0 1 0 $0.00 Maintenance & Battery Replacement Page 305 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda UAS PERSONNEL COSTS •Drone DFR is a budgeted unit, and annual costs are 1.5 million. •This includes full-time positions for (1) police lieutenant, (1) police sergeant, (2) police officer pilots, and contract staffing (Flying Lion). •In March 2024, DFR partially expanded to nighttime flying operations to include (Friday-Sunday) with an additional cost of $322,608.00 funded through Measure A. 10Page 306 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Freightliner M2-106 Mobile Command Post Freightliner M2 106 Chassis (Custom Build) SWAT Equipment Truck 11 COMMAND AND CONTROL VEHICLES The Chula Vista Police Department has two mobile command vehicles. We have utilized mobile command vehicles since 2006. These vehicles are used for staging personnel and equipment during operations. They also provide a location for dispatch to work from when on -scene, restrooms for personnel, and acts as a briefing location for officers. Page 307 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda ARMORED RESCUE VEHICLE The Chula Vista Police Department possesses one armored rescue vehicle: the Lenco Bearcat G2. •The vehicle can be used during critical incidents where ballistic protection will provide a safe advantage to the community and officers. •The vehicle does not contain any mounted weapons. •The Department has utilized this vehicle since 2011. Additionally, the SWAT team has used an armored rescue vehicle of some sort for several decades. 12Page 308 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 13 COMMAND, CONTROL, & ARMORED VEHICLES (ANNUAL EQUIPMENT REPORT) January 1, 2025 –January 1, 2026 (Equipment type)(Use)(Complaints)(Policy Violations)(Quantity)(Additional Acquisitions) (Approximate Annual Cost) Mobile Command Vehicle 3 Special Events 0 0 1 0 $3,388.49 Vehicle Maintenance SWAT Command Vehicle 4 SWAT Callouts 0 0 1 0 $3,452.50 Vehicle Maintenance Armored Rescue Vehicle 17 Including SWAT Callouts, Patrol Assists, Special Events, AOAs 0 0 1 0 $5,000.00 Vehicle Maintenance Page 309 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 40MM LAUNCHERS •The Chula Vista Police Department possesses five less lethal 40mm launchers. These launchers are equipped to deploy 40mm Specialty Impact Munitions (SIMS). •The purpose of these tools are to limit the escalation of conflict. These tools minimize the potential for lethal force. •The SWAT team has used this type of equipment since the early 1980’s. 14Page 310 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 40MM MUNITION The Chula Vista Police Department utilizes two types of 40mm munitions. These munitions fall into two categories: 1.Chemical Agent 2.Sponge Round (non-chemical agent) Note: The SWAT team has used these types of munitions since the early 1980’s. 15Page 311 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda CHEMICAL AGENTS (HAND -HELD CANISTERS) •Chemical agent canisters release a smoke irritant to produce temporary discomfort and encourage compliance during a critical incident. •Chemical agents are deployed exclusively by SWAT officers as a method of de-escalation. •The SWAT team has used this type of equipment since the early 1980’s. 16Page 312 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda COMBINED TACTICAL SYSTEMS (CTS) 6210 WHITE SMOKE CANISTER GRENADE •WHITE SMOKE CANISTER GRENADE is an outdoor smoke canister grenade designed to discharge a high volume of white smoke through multiple emission ports to obscure vision, conceal movement, and assist with signaling or marking objective areas during tactical operations. The primary operational purpose of the CTS 6210 is to obscure vision in open environments. •One key use is helping rescue a downed officer or citizen in open areas by creating a smoke screen that temporarily hides the rescue team and reduces exposure to potential threats during the extraction. 17Page 313 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 18 40MM LAUNCHERS & CHEMICAL AGENTS (ANNUAL EQUIPMENT REPORT) January 1, 2025 –January 1, 2026 (Equipment type)(Use)(Complaints)(Policy Violations) Current Inventory Quantity (Additional Acquisitions) (Approximate Cost) 40mm Launchers 0 0 0 5 0 $250.00 Maintenance 40mm Munition 20 (Used in training)0 0 134 40 $22.69/each $907.60 total Chemical Agents (Hand-Held) 52 (training/academy) 1 (actual SWAT mission) 0 0 285 60 chemical agents 10 white smoke 60 canisters @ $33.29/each = $1997.40 total 10 canisters @ $31.53/each = $315.30 total. Page 314 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda LESS LETHAL LAUNCHERS The Department has utilized less lethal launchers since the early 2000’s. Pepper ball launchers (similar to commercial paintball guns)Beanbag launchers 19Page 315 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda DIVERSIONARY DEVICES “FLASHBANGS” •Diversionary devices are serialized, steel bodied, and non-bursting canisters that emit a loud noise and bright light when deployed. •Diversionary devices are distraction tools used to increase officer safety. •Use of diversionary devices are limited to specially trained SWAT officers. •The SWAT team has used diversionary devices since the early 1980’s. 20Page 316 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda LESS LETHAL LAUNCHERS & DIVERSIONARY DEVICES (ANNUAL EQUIPMENT REPORT) January 1, 2025 –January 1, 2026 (Equipment (Use)(Complaints)(Policy (Quantity)(Additional Acquisitions) (Approximate Annual Cost) PepperBall Launchers 19 0 0 7 0 $250.00 Maintenance PepperBall Projectiles 19 0 0 1,830 0 $0.00 BeanBag Launchers 7 0 0 86 15 paid in 2024 rec’d in 2025 $4,300 Maintenance $50 (per unit) BeanBag Projectiles 25 0 0 857 0 $0.00 Diversionary Devices 13 SWAT missions 15 Training 1 Patrol 0 0 109 96 (Liberty Dynamic Electronic Diversionary devices) Purchased in 2024 Page 317 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda LONG -RIFLE (NON -ISSUED) The Department has one Smith and Wesson M&P brand long-rifle in its inventory. •This is a precision rifle, and it is used to address a deadly threat with more accuracy and at a greater distance than a handgun. •Only SWAT officers who have trained and qualified with this weapon can deploy it. •The Department has used this weapon since 2015. Additionally, the SWAT team has utilized this type of equipment since the 1970s. 22Page 318 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda LONG -RIFLE (ISSUED) The Department currently has Smith and Wesson and Colt brand rifles in its inventory. •Smith and Wesson MP15X Rifle –department standard issue •Daniel Defense DDM4 –Current SWAT standard issue •Colt M4 –SWAT Training Only •These are precision rifles and are used to address a deadly threat with more accuracy and at a greater distance than a handgun. •Only sworn personnel who have completed and maintained department training standards can deploy them. 23Patrol Issued Smith and Wesson MP15X SWAT Colt M4 Training OnlySWAT Issued Daniel Defense DDM4 Page 319 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 24 LONG RIFLES (NON -ISSUED/ISSUED) (ANNUAL EQUIPMENT REPORT) January 1, 2025 –January 1, 2026 (Equipment Type)(Use)(Complaints)(Policy Violations)(Quantity)(Additional Acquisitions) (Approximate Cost) Smith & Wesson M&P10 (SWAT Issued) 0 0 0 1 0 $50.00 Recurring cost/maintenance Smith & Wesson MP15X (Department Issued) 0 0 0 110*3 $7,700.00 Recurring cost/maintenance Daniel Defense DDM4 (SWAT Issued) 3 Same Incident Pending Litigation 0 24 0 $1,200.00 Recurring cost/maintenance Colt M4 (SWAT Training Only)0 0 0 2 0 $100.00 Recurring cost/maintenance Page 320 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda SWAT PERSONNEL COSTS 25 •SWAT is a budgeted assignment, and team positions are considered a collateral duty (part-time assignment). •Annual cost for CVPD SWAT personnel is $264,836.00. •Over 94,668 calls for service during the reporting period, and SWAT was activated 4 times to assist patrol or an outside police agency. Page 321 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda •A specially designed bolt or barrel that when placed into a firearm discharges designated SIM paint marking rounds. •Used exclusively in training scenarios and cannot fire conventional ammunition. •This type of training equipment has been used since the early 2000’s. SIM BARREL CONVERSION KITS FOR TRAINING PURPOSES ONLY 26Page 322 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 27 TRAINING ONLY -CONVERSION KITS, PAINT MARKING ROUNDS, AND DIVERSIONARY DEVICES (ANNUAL EQUIPMENT REPORT) January 1, 2025 –January 1, 2026 (Equipment type)(Use)(Complaints)(Policy Violations)(Quantity)(Additional Acquisitions) (Approximate Cost) Training Kits 0 0 0 82 0 0 Training Rounds 0 0 0 12,330 5.56mm rds. and 9mm rds. 7,500 5.56 mm rds. Requests to purchase qty 15 cases (500 rounds per case = 7,500 rounds) @ $384 each = $5,760.00. Training Diversionary Device 0 0 0 9 CTS 7290MT 108 Electronic training devices Electronic training devices 108 (2025) Purchased in 2024 Page 323 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda IN CLOSING •The Chula Vista Police Department respectfully asks the City Council to find the annual report in compliance with AB 481 •Approval of this item will authorize the council to adopt future policy amendments, as appropriate, by Resolution •Each piece of equipment is crucial for the Department’s ability to maintain public safety. 28Page 324 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda THANK YOU Page 325 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda v . 0 0 5 P a g e | 1 April 21, 2026 ITEM TITLE Approve Issuance of Bonds: Approve the Issuance of Tax-Exempt Multifamily Housing Revenue Bonds for the Acquisition, Construction, and Equipping of the Sol Vista Apartments Project and Certain Other Matters Relating Thereto Report Number: 26-0139 Location: Southwest corner of Santa Victoria Road and Santa Diana Road (Village 2) Department: Housing and Homeless Services G.C. § 84308 Regulations Apply: No Environmental Notice: The proposed Project (the “Project”) is adequately covered in the previously adopted Final Supplemental Environmental Impact Report (“FSEIR”) for the Otay Ranch Village Two Comprehensive SPA Plan Amendment (FSEIR 12-01; SCH #2003091012; and incorporated by reference in City Council Resolution No. 2014-207 on November 4, 2014). Recommended Action Conduct a public hearing and adopt a City Council resolution authorizing the issuance of tax-exempt bonds for the Project pursuant to the Tax Equity and Fiscal Responsibility Act of 1982, as amended (“TEFRA”). SUMMARY The Project is a proposed 96-unit affordable housing development to be developed by Baldwin & Sons, Inc. (the “Project Sponsor”) within Village 2 in Eastern Chula Vista, to be called Sol Vista Apartments. The proposed resolution would approve the issuance of tax-exempt multifamily housing revenue bonds for construction of the Project on behalf of the City of Chula Vista (“City”) as the local jurisdiction, in compliance with TEFRA. A separate action being considered concurrently would authorize the issuance of the bonds to the Project on behalf of the Chula Vista Housing Authority (“Housing Authority”) as governmental lender. ENVIRONMENTAL REVIEW The Project has been reviewed for compliance with the California Environmental Quality Act (“CEQA”), and it has been determined that the Project was adequately covered and addressed in the previously certified FSEIR for the Otay Ranch Village Two Comprehensive SPA Plan Amendment (FSEIR 12-01, SCH Page 326 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 2 #2003091012, and incorporated by reference in City Council Resolution No. 2014-207 on November 4, 2014), in that the Project is within the scope of the program approved in 2012, and that the FESIR adequately describes the Project for the purposes of CEQA. Therefore, no further environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION The Housing and Homeless Advisory Commission considered the item on Wednesday, March 25, 2026. It voted 3-0 to make an advisory recommendation to the Housing Authority in support of the item. DISCUSSION Background The Project Sponsor is the master developer of the Village 2 SPA. The Village 2 SPA is subject to an Affordable Housing Agreement, which requires that ten percent (10%) of the 2,786 units approved for development within Village 2 be set aside for low and moderate-income households. The Project would partially fulfill this requirement. The Project is one component of a 599-unit mixed-use development to be constructed at the intersection of Santa Victoria Road and Santa Diana Road/Birch Road, as shown in Attachment 1. The Chula Vista Planning Commission approved the 599-unit development on December 13, 2023, under Planning Commission Resolution No. 2023-24. The Project was approved in accordance with California Gov. Code, §§ 65915-65918, (aka California’s Density Bonus Law or “CDBL”) which allows for various reductions in development standards in exchange for providing onsite affordable housing. In accordance with CDBL, the Project was approved for reductions in onsite parking, private open space, common usable space, and public plaza space. While the 96-unit affordable component will be a standalone building, it is treated together with the rest of the development as a single project for the purposes of the City’s land use approvals. Under the Project’s Density Bonus Regulatory Agreement, which was executed as of July 8, 2025, all 96 units will be restricted to low-income households earning at or below eighty percent (80%) of the Area Median Income for San Diego County (the regulatory agreements associated with the tax credits and bonds will have deeper income targeting, and the most restrictive layer automatically applies). The Project will consist of 37 one-bedroom units, 31 two-bedroom units, and 28 three-bedroom units. The Project is located to the south and west of the intersection of Olympic Parkway and La Media Road. The area is considered a “moderate resource” neighborhood according to the California Tax Credit Allocation Committee (“CTCAC”) 2025 opportunity map. The adjacent neighborhood to the east of La Media Road is considered a “high resource” neighborhood, and other nearby districts are considered “highest resource.” There are a number of amenities less than one mile from the Project site, inclu ding Otay Ranch Senior High School, Saburo Muraoka Elementary School, Mater Dei Catholic High School, Grove Park, and Paterna Park. Heritage Park and Heritage Station (an MTS Rapid bus stop) are approximately 1.3 miles away from the Project site. The Otay Ranch Town Center, with grocery stores and major retail outlets, is approximately 1.5 miles away. Additionally, the larger mixed-use development at this site will include 11,400 square feet to be occupied by a commercial tenant. There are three (3) separate actions that must be formally approved by the City and/or Housing Authority prior to the issuance of tax-exempt bonds by the Housing Authority: Page 327 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 3  Inducement Resolution – This authorizes the Housing Authority, in coordination with the Project Sponsor, to apply for tax-exempt bonds on behalf of the Project. On July 16, 2025, the Housing and Homeless Advisory Commission voted to recommend adoption of the Inducement Resolution by a vote of 6-0. On August 5, 2025, the Housing Authority adopted HA Resolution No. 2025-006 authorizing the inducement of up to $25 million in tax-exempt bonds. (At the time of application, the amount requested was reduced to $14 million.)  TEFRA Hearing (this action) – Under TEFRA, the City must hold a TEFRA hearing (which is a public hearing allowing members of the public to provide comment) before approving the bond issuance in its authority as the local jurisdiction.  Issuance Resolution – This authorizes the issuance of the bonds on behalf of the governmental lender (the Housing Authority) after they have been awarded by the California Debt Limit Allocation Committee (“CDLAC”). The bond issuance resolution is scheduled to be considered immediately following the TEFRA Hearing. Project Financing Under the proposed financing structure of the Project, the Housing Authority would be the conduit bond issuer for tax-exempt multifamily housing revenue bonds in an aggregate amount not to exceed $14 million for new construction and operation of the Project. The development cost is currently projected to total $44.0 million, or approximately $458,000 per unit. This figure excludes the cost of land acquisition, which will be contributed by the Project Sponsor, as is often done in master developments with inclusionary obligations and contributes to the per unit cost being significantly lower than the current industry average for similar affordable developments. The Project is also able to realize cost savings in a number of other ways, including but not limited to (1) a cost-effective design (a light wood frame building with a surface parking lot); (2) economies of scale from spreading the architectural, engineering, and other fixed costs across the entire 599-unit complex; (3) a simplified set of funding sources resulting in lower legal and administrative costs; and (4) no funding layers that trigger prevailing wage or similar labor wage standards. An application was submitted on September 9, 2025, to CDLAC and to the CTCAC for the companion tax credits. On December 10, 2025, the application was approved for funding via CDLAC Resolution No. 25-352. The bond allocation and tax credit contributions will be used to substantially finance the Project. Tax credits and bond financing do not cover the entire cost of construction. In this case, the Project Sponsor does not intend to seek other public financing for the gap but will instead finance the remaining cost through private sources such as a mortgage or general partner equity contribution. DECISION-MAKER CONFLICT Staff have reviewed the property holdings of the City Council members and have found no property holdings within 1,000 feet of the boundaries of the property that is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act. (Gov. Code, §87100, et seq.) Staff are not independently aware, and have not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. Page 328 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 4 CURRENT-YEAR FISCAL IMPACT The Multifamily Housing Revenue Bond program is a self-supporting program, with the borrower responsible for the payment of all costs of issuance and other costs of the bonds. The City will have no financial, legal, or moral obligation, liability, or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City but are to be paid for solely from funds provided by the Borrower. The Housing Authority will recover costs associated with bond administration by assessing fees to the Project in accordance with the Master Fee Schedule (Fee Bulletin 19-100). The current fee for bond origination is twenty basis points (0.20%) of the issuance amount, with a minimum fee of $15,000. The origination fee range would be between $15,000 and $28,000. ONGOING FISCAL IMPACT The Multifamily Housing Revenue Bond program is a self-supporting program. Staff costs associated with monitoring compliance of the regulatory restrictions and administration of the outstanding bonds will be reimbursed from an annual administrative fee paid to the Housing Authority by the owner. The current fee amount for a 96-unit development is $17,000 annually. ATTACHMENTS 1. Project Location Map Staff Contact: Brian Warwick, Housing Manager Stacey Kurz, Director of Housing and Homeless Services Page 329 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Attachment 1: Project Location Map Page 330 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Form Rev 9/30/2025 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ISSUANCE, SALE, AND DELIVERY OF MULTIFAMILY HOUSING REVENUE OBLIGATIONS OF THE CHULA VISTA HOUSING AUTHORITY FOR THE SOL VISTA APARTMENTS PROJECT WHEREAS, the Chula Vista Housing Authority (“Housing Authority”) intends to issue multifamily housing revenue notes in an aggregate principal amount not to exceed $14,000,000 (“Obligations”) to finance the acquisition and construction of a 96-unit multifamily rental housing project, aka the Sol Vista Apartments Project (“Project”) to be located at the southwest corner of Santa Victoria Road and Santa Diana Road; and WHEREAS, the Project will be owned and/or operated by MU2 Affordable LP, a California limited partnership (“Owner”); and WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), the Obligations are required to be approved, following a public hearing, by an elected representative of the governmental unit having jurisdiction over the area in which the Project is located; and WHEREAS, the Project is located wholly within the geographic jurisdiction of the City of Chula Vista (“City”); and WHEREAS, the City Council of the City of Chula Vista (“City Council”) is the elected legislative body of the City; and WHEREAS, the City published a notice in a newspaper of general circulation on April 3, 2026, informing the public that a public hearing would be held by the City Council on April 21, 2026, regarding the financing of the Project and the issuance of the Obligations; and WHEREAS, on April 21, 2026, the City Council held said public hearing, at which time an opportunity was provided to present arguments both for and against the issuance of the Obligations. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, as follows: 1. The City Council does hereby find and declare that the above recitals are true and correct; 2. Pursuant to Section 147(f) of the Code, the City Council hereby approves the issuance of the Obligations by the Housing Authority in one or more series, in an aggregate principal amount not to exceed $14,000,000 and with a final maturity not later than 45 Page 331 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Resolution No. Page 2 years from the date of issuance to finance the acquisition, construction and equipping of the Project. It is the purpose and intent of the City Council that this Resolution constitute approval of the issuance of the Obligations by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(f); and 3. This Resolution shall take effect from and after its adoption. Presented by Approved as to form by Stacey Kurz Marco A. Verdugo Director of Housing and Homeless Services City Attorney Page 332 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Empower individuals & families ●Build community resilience ●Promote housing opportunities ●Enhance quality of life HOUSING & HOMELESS SERVICES Item 7.2 Sol Vista TEFRA Page 333 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda HOUSING & HOMELESS SERVICES Multifamily Housing Revenue Bonds •Awarded by California Debt Limit Allocation Committee (CDLAC) •Low-cost financing for affordable housing projects •Paired with 4% tax credits from California Tax Credit Allocation Committee (CTCAC) •No City/Housing Authority financial obligation •Repaid from rental revenue Page 334 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda HOUSING & HOMELESS SERVICES Bond Process CDLAC Governmental Lender Funding Lender Project Page 335 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda HOUSING & HOMELESS SERVICES TEFRA •Tax Equity and Fiscal Responsibility Act of 1982 •Hearing must be held, with opportunity for public comment •Held by local jurisdiction, not bond issuer •Sol Vista $14 million issuance amount Page 336 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda HOUSING & HOMELESS SERVICES Project Overview •Village 2 •Baldwin & Sons •Mix of 1, 2, and 3 bedroom units •30% -70% of Area Median Income (AMI) Page 337 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda HOUSING & HOMELESS SERVICES Project Overview •96 units •4 story, L shaped layout, wood frame •Part of larger 599-unit complex •Tot lot, dog park, fitness room, pool, lounge areas, and other amenities Project Location Page 338 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda HOUSING & HOMELESS SERVICES Income & Rent Restrictions % of Area Median Income (AMI)3 Person Household 2 Bedroom Unit 30% of AMI $44,670 $1,116 50% of AMI $74,450 $1,861 60% of AMI $89,340 $2,233 70% of AMI $104,230 $2,605 Page 339 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda HOUSING & HOMELESS SERVICES Milestones & Timeline Milestone Responsible Party Target Date HHAC Consideration of Inducement HHAC July 16, 2025 Bond Inducement Housing Authority August 5, 2025 CDLAC Application Baldwin & Sons September 9, 2025 Award Notification CDLAC December 2025 Building Permit Issued City March 23, 2026 HHAC Recommendation of Bond Issuance HHAC March 25, 2026 TEFRA Hearing & Approval City April 21, 2026 Bond Issuance Final Approval Housing Authority April 21, 2026 Loan Closing & Construction Start Baldwin & Sons May 2026 Construction Completion Baldwin & Sons May 2028 Page 340 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda HOUSING & HOMELESS SERVICES Staff Recommendation City of Chula Vista conduct a public hearing and adopt a resolution authorizing the issuance of tax- exempt bonds for the Sol Vista Apartments project and certain other matters relating thereto Page 341 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda v . 0 0 5 P a g e | 1 April 21, 2026 ITEM TITLE Housing Authority Bond Approval: Approve the Issuance of Tax-Exempt Multifamily Housing Revenue Bonds for the Acquisition, Construction, and Equipping of the Sol Vista Apartments Project and Certain Other Matters Relating Thereto Report Number: 26-0091 Location: Southwest corner of Santa Victoria Road and Santa Diana Road (Village 2) Department: Housing and Homeless Services G.C. § 84308 Regulations Apply: No Environmental Notice: The proposed Project is adequately covered in the previously certified Final Supplemental Environmental Impact Report (FSEIR) for the Otay Ranch Villages Two, Three, and a Portion of Village Four Comprehensive SPA Plan Amendment (FSEIR 12-01; SCH #2003091012; and incorporated by reference in City Council Resolution No. 2014-207 on November 4, 2014). Recommended Action Adopt a resolution of the Chula Vista Housing Authority authorizing the issuance of up to $14,000,000 in tax- exempt bond obligations for the ninety-six (96) unit Sol Vista Apartments affordable housing development, formerly referred to as Enclave Montecito. SUMMARY Sol Vista Apartments (the “Project”) is a proposed ninety-six (96) unit affordable housing development to be developed by Baldwin & Sons, Inc. (the “Project Sponsor”) within Village 2 in Eastern Chula Vista. The proposed action would authorize the Chula Vista Housing Authority (“Housing Authority”) to issue tax- exempt multifamily housing revenue bonds, in an aggregate amount not to exceed $14 million, to finance the construction, maintenance, and operation of the Project. A separate public hearing and resolution was heard prior to this item, considering approval of the issuance on behalf of the City of Chula Vista (“City”) as the local jurisdiction, in compliance with the Tax Equity and Fiscal Responsibility Act of 1982, as amended (“TEFRA”). Page 342 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 2 ENVIRONMENTAL REVIEW The Project has been reviewed for compliance with the California Environmental Quality Act (CEQA), and it has been determined that the Project was adequately covered in the previously certified Final Second Tier Environmental Impact Report for the Otay Ranch Villages Two, Three, and a Portion of Village Four Sectional Planning Area (SPA) Plan (FSEIR 12-01; SCH #2003091012; and incorporated by reference in City Council Resolution No. 2014-207 on November 4, 2014) and Final Supplemental Environmental Impact Report for the Village Two Comprehensive SPA Plan Amendment (FSEIR 12-01; SCH #2003091012; and incorporated by reference in City Council Resolution No. 2014-207 on November 4, 2014). Therefore, no further environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION The Housing and Homeless Advisory Commission considered the item on Wednesday, March 25, 2026. It voted 3-0 to make an advisory recommendation to the Housing Authority in support of the item. DISCUSSION Background The Project Sponsor is the master developer of the Village 2 SPA. The Village 2 SPA is subject to an Affordable Housing Agreement, which requires that ten percent (10%) of the 2,786 units approved for development within Village 2 be set aside for low- and moderate-income households. The proposed project would partially fulfill this requirement. The Project is one component of a five hundred ninety-nine (599) unit mixed-use development to be constructed at the intersection of Santa Victoria Road and Santa Diana Road/Birch Road , as shown in Attachment 1. The Chula Vista Planning Commission approved the five hundred ninety-nine (599) unit development on December 13, 2023, under Planning Commission Resolution No. 2023-24. The Project was approved in accordance with State Density Bonus Law, which allows for various reductions in development standards in exchange for providing onsite affordable housing. In accordance with State Density Bonus Law, the Project was approved for reductions in onsite parking, private open space, common usable space, and public plaza space. While the ninety-six (96) unit affordable component will be a standalone building, it is treated together with the rest of the development as a single project for the purposes of the City’s land use approvals. Under the Project’s Density Bonus Regulatory Agreement, which was executed as of July 8, 2025, all ninety-six (96) units will be restricted to low-income households earning at or below eighty percent (80%) of the Area Median Income (AMI) for San Diego County. (The regulatory agreements associated with the tax credits and bonds will have deeper income targeting, and the most restrictive layer automatically applies.) The Project will consist of thirty-seven (37) one-bedroom units, thirty-one (31) two-bedroom units, and twenty-eight (28) three-bedroom units. The Project is located to the south and west of the intersection of Olympic Parkway and La Media Road. The area is considered a “moderate resource” neighborhood according to the CTCAC 2025 opportunity map. (The adjacent neighborhood to the east of La Media Road is considered a “high resource” neighborhood, and other nearby districts are considered “highest resource.”) There are a number of amenities less than one mile from the Project site, including Otay Ranch Senior High School, Saburo Muraoka Elementary School, Mater Dei Catholic High School, Grove Park, and Paterna Park. Heritage Park and Heritage Station, an MTS Rapid bus Page 343 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 3 stop, are approximately 1.3 miles away from the Project site. The Otay Ranch Town Center, with grocery stores and major retail outlets, is approximately 1.5 miles away. Additionally, the larger mixed-use development at this site will include 11,400 square feet to be occupied by a commercial tenant. There are three (3) separate actions that must be formally approved by the City and/or Housing Authority prior to the issuance of tax-exempt bonds by the Housing Authority:  Inducement Resolution – This authorizes the Housing Authority, in coordination with the Project Sponsor, to apply for tax-exempt bonds on behalf of the Project. On July 16, 2025, the Housing and Homeless Advisory Commission voted to recommend adoption of the Inducement Resolution by a vote of 6-0. On August 5, 2025, the Housing Authority adopted HA Resolution No. 2025-006 authorizing the inducement of up to $25 million in tax-exempt bonds. (At the time of application, the amount requested was reduced to $14 million.)  TEFRA Hearing – Under the Tax Equity and Fiscal Responsibility Act of 1982, as amended, the City must separately hold a public hearing (the TEFRA Hearing) and allow opportunity for public comment on the proposed bond issuance. The TEFRA Hearing was held prior to this action.  Issuance Resolution – Following an award of bond allocation from the California Dent Limit Allocation Committee CDLAC, this authorizes the issuance of the bonds on behalf of the Housing Authority as governmental lender. This is the item now being considered. Project Financing With the proposed action, the Housing Authority would be the conduit bond issuer for tax-exempt multifamily housing revenue bonds in an aggregate amount not to exceed $14 million for new construction and operation of the Project. The total development cost is currently projected to be $44.0 million, or approximately $458,000 per unit. This figure excludes the acquisition cost of land, which will be contributed by the Project Sponsor, as often is done in master developments with inclusionary obligations, and contributes to the per unit cost bein g significantly lower than the current industry average for similar affordable developments. The Project is also able to realize cost savings in a number of other ways: cost-effective design (a light wood frame building with a surface parking lot); economies of scale from spreading the architectural, engineering, and other fixed costs across the entire 599-unit complex; a simplified set of funding sources resulting in lower legal and administrative costs; and no funding layers that trigger prevailing wage or similar labor wage standards. An application was submitted September 9, 2025, to CDLAC and to the California Tax Credit Allocation Committee (CTCAC) for the companion tax credits. On December 10, 2025, the application was approved for funding, via CDLAC Resolution No. 25-352. The bond allocation and tax credit contributions will be used to substantially finance the Project. Tax credit and bond financing do not cover the entire cost of construction. In this case, the Project Sponsor does not intend to seek other public financing for the gap but will instead finance the remaining cost through private sources such as a mortgage or General Partner equity contribution. The Housing Authority has an experienced team of consultants to assist with all aspects of the issuance. Peter Ross with Ross Financial is serving as bond adviser, reviewing the construction and operating budgets of the project and coordinating other aspects of the transaction. Bradley Neal with Stradling Yocca Carlson & Rauth serves as bond counsel on all Authority bond issuances, reviewing the legal aspects of the transaction. The Page 344 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 4 Authority’s status will be strengthened by expanding its portfolio of affordable projects, and the City and the Housing Authority will have a greater ability to oversee ongoing compliance of the Project than if the bonds were administered by an outside issuer. Further details regarding the Project can be found in the Feasibility Analysis performed by Ross Financial, attached to this report as Attachment 2. The transaction documents are attached to this report as Attachments 3, 4 and 5. They are in substantially final form but remain subject to change, as approved by Legal Counsel. DECISION-MAKER CONFLICT Staff have reviewed the property holdings of the Housing Authority members and have found no property holdings within 1,000 feet of the boundaries of the property that is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, Section 18702.2(a)(7) or (8), for purposes of the Political Reform Act. (Gov. Code, §87100, et seq.) Staff are not independently aware and have not been informed by any Housing Authority Board member of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT The Multifamily Housing Revenue Bond program is a self-supporting program, with the borrower responsible for the payment of all costs of issuance and other costs of the bonds. The City will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City but are to be paid for solely from funds provided by the Borrower. The Housing Authority will recover costs associated with administration by assessing fees to the Project in accordance with the Master Fee Schedule (Fee Bulletin 19-100). The current fee for bond origination is twenty basis points (0.20%) of the issuance amount, with a minimum fee of $15,000. The origination fee range would be between $15,000 and $28,000. ONGOING FISCAL IMPACT The Multifamily Housing Revenue Bond program is self-supporting program. Staff costs associated with monitoring compliance of the regulatory restrictions and administration of the outstanding bonds will be reimbursed from an annual administrative fee paid to the Housing Authority by the owner. The current fee amount for a 96-unit development is $17,000 annually. ATTACHMENTS 1. Project Location Map 2. Feasibility Analysis 3. Borrower Loan Agreement 4. Funding Loan Agreement 5. Regulatory Agreement and Declaration of Restrictive Covenants Page 345 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 5 Staff Contact: Brian Warwick, Housing Manager Stacey Kurz, Director of Housing and Homeless Services Page 346 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Attachment 1: Project Location Map Page 347 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda ROSS FINANCIAL 1736 Stockton Street, Suite One • San Francisco, CA 94133 • (415) 912-5612 • FAX (415) 912-5611 March 17, 2026 Mr. Brian Warwick Housing Manager City of Chula Vista Housing Division 276 Fourth Street, Building A Chula Vista, CA 91910 Re: Sol Vista Apartments (fka Enclave Montecito) Dear Mr. Warwick: The Chula Vista Housing Authority (the “Housing Authority”) has retained Ross Financial as its municipal advisor to analyze the feasibility of issuing tax-exempt obligations (the “Obligations” or the “Note”) for the Sol Vista Apartments (fka Enclave Montecito)(the “Development”). This feasibility analysis reviews the following items: • Overview of the Development • Proposed financing approach • Benefits and risks to Housing Authority • Public purpose • Recommendations Ross Financial has based its analysis of the Development’s financial feasibility on materials provided by the Housing Authority and Rise Urban Partners LLC (“Rise”), which is advising the borrower entity for the Development. The materials include: (1) the joint application to the California Debt Limit Allocation Committee (“CDLAC”) and the California Tax Credit Allocation Committee (“CTCAC”), (2) the financing commitment from Citibank, N.A., as construction and permanent lender (the “Lender”), (3) the market study performed by Kidder Mathews in support of the joint application to CDLAC and CTCAC, and (4) Rise’s pro forma financial schedules for the Development. Ross Financial has not visited the site of the proposed Development, has had no role in the selection of the Lender and has had no role in the creating the overall financing structure. Page 348 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Mr. Brian Warwick Re: Sol Vista Apartments March 17, 2026 Page 2 of 8 OVERVIEW OF DEVELOPMENT Development Summary. The Development is the proposed new construction of a multifamily housing rental development located at 1485 Santa Victoria Avenue in Chula Vista. The Development consists of 96 affordable apartments (the one manager’s units is also restricted), all located in a single four-story, elevator-served building. The Development will contain 125 parking spaces. The construction type is Type V with an exterior of stucco, metal and concrete. The Development will be all electric and will have solar panels serving the common spaces. The unit mix and affordability restrictions for the Development will be as follows: Table 1 Sol Vista Apartments 30% AMI 50% AMI 60% AMI 70% AMI Total 1 Bedroom/1 Bath 4 4 16 13 37 2 Bedroom/1 Bath 3 3 12 13* 31 3 Bedroom/2 Bath 3 3 9 13 28 Total Units 10 10 37 39 96 *Includes one restricted manager’s unit According the CDLAC application, all units will be adaptable, and each will be equipped with a refrigerator, oven, microwave, dishwasher and sink with garbage disposal. Project amenities include secured entry, a club room, common areas and a playground. The Development also will share amenities with a neighboring project, including a pool, business center, fitness center, barbecue area and pet play area. Description of Project Site. The Development will be constructed on a 2.4 acre site (the “Site”) that currently is vacant, undeveloped land. The Site is rectangular in shape and occupies a prominent corner at Santa Victoria and Santa Diana Roads, west of the major collector corridors of Birch Road and La Media Road and approximately 1 mile from SR 125. The immediate vicinity is characterized by a blend of multifamily residential, single family residential, educational, public, industrial and commercial land uses, The Site is located within a Section Planning Area identified as Otay Ranch Village Two. The Site and other properties within Otay Ranch Village Two are subject to an Affordable Housing Agreement dated September 14, 2010 (the “Village 2 AHA”). The Village 2 AHA authorizes the construction of 2,786 total dwelling units with a requirement that at least 10% of units be designated as affordable, including 5% affordable to moderate income households and 5% as affordable to low income households. The 96 low-income units in the Development count towards the obligations under Village 2 AHA. Project Ownership/Borrower. The ownership entity for the Development will be MU2 Affordable LP (the “Borrower”), a single asset California limited partnership consisting Page 349 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Mr. Brian Warwick Re: Sol Vista Apartments March 17, 2026 Page 3 of 8 of: (1) MU Affordable LLC, an entity created by The Baldwin Company (“Baldwin”), which will act as the administrative general partner (“AGP”), (2) SBCS (formerly, South Bay Community Services,) a 501(c)(3) nonprofit public benefit corporation, which will act as the managing general partner (“MGP”); and (3) an investor limited partner that will be an entity formed by WNC Inc. According to its website, Baldwin has more than 70 years of experience in financing, developing and/or rehabilitating multifamily rental housing. This experience encompasses 20,000 residential units that span from Los Angeles to San Diego. Baldwin’s most recent development activity in Chula Vista includes: • Enclave Montecito Apartments – a 253-unit new construction multifamily project located at the Southeast corner of Santa Victoria Road & Birch Road, Chula Vista, which began construction in the 3rd quarter of 2025 • Element Hotel – a 148 key new construction hotel project at 2045 Centerpark Road, Chula Vista, which will open in the 2nd quarter of 2026 • Enclave Town Center Apartments and retail – a 239-unit new construction multifamily project with 12,772 square feet of retail located at 1445 Town Center Drive, Chula Vista, which was stabilized in 2025 • Enclave Heritage Apartments – a 312-unit new construction multifamily and 93- unit for rent townhome project located at 1800 Santa Carolina Road, Chula Vista, which was stabilized in 2025 CDLAC/CTCAC. On September 9, 2025, the Housing Authority filed a joint application to CDLAC and CTCAC requesting a private activity bond allocation of $14,000,000 for the Development and new 4% Federal tax credits. CDLAC awarded the allocation in the requested amount at its meeting of December 10, 2025. In connection with the CDLAC application process, on August 5, 2025, the Housing Authority adopted a resolution of intent to issue tax-exempt obligations for the Development and authorized the submission of an application to CDLAC. A TEFRA hearing is scheduled for April 14, 2026 for purposes of Section 147 of the Internal Revenue Code. PROPOSED FINANCING Project Costs and Funding. According to most recent projections provided by Rise on behalf of the Borrower, the total cost of the Development, including construction and all soft costs, is estimated at $44,010,246. The estimated sources of funds will differ during the construction period and following construction and lease-up (“at permanent”). The following table allocates these sources and uses during construction and at permanent Page 350 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Mr. Brian Warwick Re: Sol Vista Apartments March 17, 2026 Page 4 of 8 based on the most recent projections, which remain subject to change based on final costs and loan underwriting: Table 2 Sources of Funds Construction Permanent Tax-Exempt Senior Note Proceeds $12,750,000 $12,750,000 Conventional Taxable Loan 14,166,924 6,960,263 Gap Loan from Baldwin 2,154.975 2,154,975 Accrued Interest on Gap Loan 200,000 200,000 Low Income Housing Tax Credit Equity (Federal) 7,052,063 17,630,157 Deferred Cost 3,371,433 0 Deferred Developer Fee 4,314,851 4,314,851 Total $44,010,246 $44,010,246 Uses of Funds Construction Costs $28,724,453 $28,724,453 Construction Loan Interest 2,150,000 2,150,000 Accrued Interest on Gap Loan 200,000 200,000 Impact and Permit Fees 4,498,715 4,498,715 Architectural & Engineering 770,864 770,864 Financing, Legal and Other Soft Costs 1,254,210 1,254,210 Soft Cost Contingency 461,735 461,735 Reserves 556,705 556,705 Developer Fee* 5,393,564 5,393,564 Total** $44,010,246 $44,010,246 *Cash developer fee is $1,078,839 The Financing Approach. The Obligations requested by the Borrower to be issued by the Housing Authority will consist of senior Obligations in the form of a tax-exempt note (the “Note”) evidencing a loan to be made by Citibank, N.A. (“Lender”). In addition, the Lender will be making a taxable loan (the “Taxable Loan”) directly to the Borrower that will be on parity with the Note. The Note Housing Authority will issue the Note in the anticipated amount of $12,750,000 to finance a portion of the costs of constructing the Development. The Note will have the following features: • The Note will be purchased and funded by the Lender on a draw down basis; • The Note will be issued in a single series; • The Note will be on parity to the conventional Taxable Loan o The conventional Taxable Loan will be in the estimated amount of $14,166,924 during construction and will be paid down at Conversion from tax credit proceeds to $6,960,263; Page 351 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Mr. Brian Warwick Re: Sol Vista Apartments March 17, 2026 Page 5 of 8 o The Taxable Loan will bear a variable rate during construction (currently estimated at 6.17%) and a fixed rate at permanent (currently estimated at 6.88%)(rates as of March 17, 2026) • The Note will bear a variable rate during construction (currently estimated at 5.42%) and a fixed rate at permanent (estimated at 6.13%)(rates as of March 17, 2026) • The Note is anticipated to mature in 33 years and will amortize on a 40-year basis. • The Note is subject to mandatory prepayment at the end of 18 years. • The Note is expected to close on or before April 30, 2026. The Lender will execute an investor letter in which it will represent that it has sufficient knowledge and experience to evaluate the risks and merits associated with making the loans evidenced by the Note. The Lender may transfer all or a portion of the Note to “qualified institutional buyers” or an affiliate of the Lender, provided such transferee executes a letter similar to the one executed by the Lender at Note closing. Such transfer letter is not required for transfers to a trust or custodial arrangement established by the Lender or a governmental entity the beneficial interests in which are sold to a qualified institutional investor or receive an investment grade rating. Housing Authority Financial Involvement. The Housing Authority does not have any financial involvement with the Development. However, it will execute an Amended and Restated Regulatory Agreement – Affordability Housing Density Bonus with the Borrower that will contain affordability restrictions that will mirror those contained in the tax-exempt Note Regulatory Agreement. Affordability Restrictions. The Development will be subject to the following regulatory restrictions (collectively, the “Regulatory Agreements”) and terms: • Tax-Exempt Note Regulatory Agreement requirements (including voluntary elections made to CDLAC) for a 55-year term after completion; • Tax Credit Regulatory Agreement requirements under which all units must be affordable at the levels shown in Table xx above for a 55-year term to remain eligible for tax credits; and • Amended and Restated Regulatory Agreement – Affordability Housing Density Bonus requirements which contain similar restrictions as contained in the Tax Credit Regulatory Agreement. Development Cash Flow. The Borrower provided pro forma cash flows for the Development. The following table summarizes key elements of the most recent pro forma: Page 352 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Mr. Brian Warwick Re: Sol Vista Apartments March 17, 2026 Page 6 of 8 Table 3 Assumptions Vacancy 5% Revenue Escalation 3% Expense Escalation 3% Cash Flow and Coverage Stabilized Net Income – First Full Year1 $2,431,948 Expenses (813,514) Replacement Reserve (28,800) Housing Authority Bond Monitoring Fee (17,000) Net Operating Income Available for Debt Service $1,572,634 Tax-Exempt Note Debt Service2 (855,733) Taxable Loan Debt Service3 (511,775) Debt Service Coverage4 1.15x Cash Flow after Debt Service 205,126 LP Fee (10,927) MGP Fee (10,927) AGM Fee (16,391) Estimated Net Project Cash Flow $166,881 Deferred Developer Fee (Priority Payment) (166,881) Available Cash Flow after Deferred Developer Fee $0 Repayment of Deferred Developer Fee (Remaining Portion $0 1 Conversion is projected to occur in November 2028 2 Assumes an initial permanent tax-exempt note par of $12,750,000 @ 6.13% all-in interest rate and 40 year amortization 3 Assumes initial permanent taxable loan par of $6,960,263 @ 6.88% all-in interest rate and 40 year amortization 4 Net operating income divided by total tax-exempt and taxable debt service The following table shows the Borrower’s most recent projected cash flow for the Development during first full five years following stabilized occupancy: Page 353 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Mr. Brian Warwick Re: Sol Vista Apartments March 17, 2026 Page 7 of 8 PUBLIC PURPOSE The Note is expected to result in the long-term affordability of 96 one, two and three- bedroom units in the City of Chula Vista: 10 units will be restricted and affordable to households earning 30% AMI; 10 units will be restricted and affordable to households earning 50% AMI; 37 units will be restricted and affordable to households earning 60% AMI and 39 units (including the manager’s unit) will be restricted and affordable to households earning 70% AMI. The Regulatory Agreements will require that these affordability levels be maintained for a period of 55 years. BENEFITS AND RISKS TO THE HOUSING AUTHORITY The Note provides a vehicle for financing a portion of the construction costs of the Development. As proposed, the Note will result in the long-term affordability of 96 one, one, two and three-bedroom units in the City of Chula Vista with units restricted to income levels described in “Public Purpose” above. The Note does not pose undue financial risk to the Housing Authority. The Note is not a direct obligation of the Housing Authority or the City of Chula Vista. The Note will evidence a loan to be funded by the Lender, which is an experienced and well-capitalized financial institution. If the Housing Authority issues the Note, it will receive an issuer fee at closing equal to 0.20% times the initial aggregate par amount of the Note ($12,750,000 based on current projections). This amounts to $25,500. The Housing Authority also would receive an annual Obligation monitoring fee of $17,000. Escalation Revenues 1 2 3 4 5 3.00%Gross Scheduled Rent 2,539,937 2,590,736 2,642,550 2,695,401 2,749,309 3.00%Other Income 19,008 102,262 104,307 106,393 108,521 less 5% vacancy (126,997)(129,537)(132,128)(134,770)(137,465) Total Net Income 2,431,948 2,563,461 2,614,730 2,667,025 2,720,365 Expenses 3.00%Operating Expenses*(813,514)(783,616)(805,446)(827,906)(851,014) Replacement Reserve (28,800)(28,800)(28,800)(28,800)(28,800) Issuer Bond Monitoring Fee (17,000)(17,000)(17,000)(17,000)(17,000) Total Expenses + Reserves (859,314)(829,416)(851,246)(873,706)(896,814) Net Operating Income 1,572,634 1,734,045 1,763,484 1,793,319 1,823,551 Tax-exempt Note (855,733)(855,733)(855,733)(855,733)(855,733) Taxable Loan (511,775)(511,775)(511,775)(511,775)(511,775) Total Debt Service (1,367,508)(1,367,508)(1,367,508)(1,367,508)(1,367,508) Debt Service Coverage 1.15x 1.27x 1.29x 1.31x 1.33x Available Cash Flow after Bond Debt Service 205,126 366,537 395,976 425,811 456,043 3.00%LP Fee (10,927)(11,255)(11,592)(11,940)(12,298) 3.00%MGP Fee (10,927)(11,255)(11,592)(11,940)(12,298) 3.00%AGP Fee (16,391)(16,883)(17,389)(17,911)(18,448) Project Cash Flow after GP and LP Fees 166,881 327,145 355,402 384,019 412,998 Deferred Developer Fee (Priority Payment)(166,881)(327,145)(355,402)(384,019)(412,998) Project Cash Flow after Priority Deferred Developer Fee 0 0 0 0 0 Year Page 354 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Mr. Brian Warwick Re: Sol Vista Apartments March 17, 2026 Page 8 of 8 Costs of issuance will be funded by the Borrower from low income housing tax credit contributions and/or other funds of the Borrower. RECOMMENDATIONS Ross Financial recommends that the Housing Authority proceed with the issuance of the Note based on the following findings: • The Note will achieve a public purpose by providing 96 affordable units, with all units restricted to income levels at 30%, 50%, 60% and 70% of AMI. • The Note will evidence a tax-exempt loan funded by a well-established, highly capitalized bank that is active in affordable housing lending. The Note will be subject to restrictive transfer limitations. • The Borrower will pay issuance costs from sources other than Note proceeds. • Based on estimates provided by the Borrower, there should be sufficient funds to complete the Development and the Development provides adequate cash flow to cover debt service on the Note and the Taxable Loan made by the Lender. If there is any additional information you require concerning the Development, Ross Financial will be pleased to provide a supplemental analysis. Very truly yours, Peter J. Ross Principal Page 355 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Stradling Yocca Carlson & Rauth Draft dated April 14, 2026 4933-7130-2287v5/024036-0105 BORROWER LOAN AGREEMENT between the CHULA VISTA HOUSING AUTHORITY, as Governmental Lender and MU2 AFFORDABLE LP, a California limited partnership as Borrower dated as of _______________ 1, 2026 relating to: $_____________________ Funding Loan originated by CITIBANK, N.A., as Funding Lender from the proceeds of the $_____________________ Chula Vista Housing Authority Multifamily Housing Revenue Note (Sol Vista Apartments) 2026 Series A The interest of the Governmental Lender in this Borrower Loan Agreement (except for certain rights described herein) has been pledged and assigned to Citibank, N.A., as funding lender (the “Funding Lender”), under that certain Funding Loan A greement, of even date herewith, by and among Chula Vista Housing Authority (the “Governmental Lender”), Wilmington Trust, National Association, as fiscal agent, and the Funding Lender, under which the Funding Lender is originating a loan to the Governmental Lender the proceeds of which are to be used to fund the Borrower Loan made under this Borrower Loan Agreement. Page 356 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda TABLE OF CONTENTS Page i 4933-7130-2287v5/024036-0105 ARTICLE I DEFINITIONS; PRINCIPLES OF CONSTRUCTION Section 1.1 Specific Definitions ................................................................................................. 2 Section 1.2 Definitions ................................................................................................................ 2 ARTICLE II GENERAL Section 2.1 Origination of Borrower Loan ............................................................................... 16 Section 2.2 Security for the Funding Loan ............................................................................... 16 Section 2.3 Loan; Borrower Note; Conditions to Closing ........................................................ 18 Section 2.4 Borrower Loan Payments ...................................................................................... 19 Section 2.5 Additional Borrower Payments .............................................................................. 20 Section 2.6 Overdue Payments; Payments in Default............................................................... 21 Section 2.7 Calculation of Interest Payments and Deposits to Real Estate Related Reserve Funds ........................................................................................................ 21 Section 2.8 Grant of Security Interest; Application of Funds ................................................... 21 Section 2.9 Marshalling; Payments Set Aside .......................................................................... 22 Section 2.10 Borrower Loan Disbursements .............................................................................. 22 ARTICLE III CONVERSION Section 3.1 Conversion Date and Extension of Outside Conversion Date ............................... 22 Section 3.2 Notice From Funding Lender; Funding Lender’s Calculation Final ..................... 22 Section 3.3 Mandatory Prepayment of the Borrower Loan ...................................................... 23 Section 3.4 Release of Remaining Loan Proceeds .................................................................... 23 Section 3.5 No Amendment ...................................................................................................... 23 Section 3.6 Determinations by Funding Lender ....................................................................... 23 ARTICLE IV REPRESENTATIONS AND WARRANTIES Section 4.1 Borrower Representations ...................................................................................... 24 ARTICLE V AFFIRMATIVE COVENANTS Section 5.1 Existence ................................................................................................................ 34 Section 5.2 Taxes and Other Charges ....................................................................................... 35 Section 5.3 Repairs; Maintenance and Compliance; Physical Condition ................................. 35 Section 5.4 Litigation ................................................................................................................ 35 Section 5.5 Performance of Other Agreements ........................................................................ 35 Section 5.6 Notices ................................................................................................................... 35 Section 5.7 Cooperate in Legal Proceedings ............................................................................ 36 Section 5.8 Further Assurances ................................................................................................. 36 Section 5.9 Delivery of Financial Information ......................................................................... 36 Page 357 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda TABLE OF CONTENTS (continued) Page ii 4933-7130-2287v5/024036-0105 Section 5.10 Environmental Matters ........................................................................................... 36 Section 5.11 Governmental Lender’s and Funding Lender’s Fees ............................................. 37 Section 5.12 Estoppel Statement ................................................................................................. 37 Section 5.13 Defense of Actions ................................................................................................. 37 Section 5.14 Expenses ................................................................................................................ 38 Section 5.15 Indemnity ............................................................................................................... 38 Section 5.16 No Warranty of Condition or Suitability by the Governmental Lender or Funding Lender ...................................................................................................... 41 Section 5.17 Right of Access to the Project ................................................................................ 41 Section 5.18 Notice of Default .................................................................................................... 41 Section 5.19 Covenant with Governmental Lender and Funding Lender ................................... 41 Section 5.20 Obligation of the Borrower to Construct or Rehabilitate the Project..................... 41 Section 5.21 Maintenance of Insurance ...................................................................................... 42 Section 5.22 Information; Statements and Reports ..................................................................... 42 Section 5.23 Additional Notices ................................................................................................. 43 Section 5.24 Compliance with Other Agreements; Legal Requirements ................................... 44 Section 5.25 Completion and Maintenance of Project ................................................................ 44 Section 5.26 Fixtures .................................................................................................................. 44 Section 5.27 Income from Project .............................................................................................. 44 Section 5.28 Leases and Occupancy Agreements ....................................................................... 45 Section 5.29 Project Agreements and Licenses .......................................................................... 45 Section 5.30 Payment of Debt Payments .................................................................................... 46 Section 5.31 ERISA .................................................................................................................... 46 Section 5.32 Patriot Act Compliance .......................................................................................... 46 Section 5.33 Funds from Equity Investor ................................................................................... 47 Section 5.34 Tax Covenants ....................................................................................................... 47 Section 5.35 Payment of Rebate ................................................................................................. 51 Section 5.36 Covenants under Funding Loan Agreement .......................................................... 53 Section 5.37 Continuing Disclosure Agreement ......................................................................... 53 ARTICLE VI NEGATIVE COVENANTS Section 6.1 Management Agreement ........................................................................................ 53 Section 6.2 Dissolution ............................................................................................................. 53 Section 6.3 Change in Business or Operation of Property ........................................................ 53 Section 6.4 Debt Cancellation ................................................................................................... 53 Section 6.5 Assets ..................................................................................................................... 54 Section 6.6 Transfers ................................................................................................................ 54 Section 6.7 Debt ........................................................................................................................ 54 Section 6.8 Assignment of Rights ............................................................................................. 54 Section 6.9 Principal Place of Business .................................................................................... 54 Section 6.10 Partnership Agreement ........................................................................................... 54 Section 6.11 ERISA .................................................................................................................... 54 Section 6.12 No Hedging Arrangements .................................................................................... 54 Section 6.13 Loans and Investments; Distributions; Related Party Payments ........................... 54 Section 6.14 Amendment of Related Documents or CC&R’s .................................................... 55 Page 358 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda TABLE OF CONTENTS (continued) Page iii 4933-7130-2287v5/024036-0105 Section 6.15 Personal Property ................................................................................................... 55 Section 6.16 Fiscal Year ............................................................................................................. 55 Section 6.17 Publicity ................................................................................................................. 55 Section 6.18 Subordinate Loan Documents ................................................................................ 56 ARTICLE VII RESERVED ARTICLE VIII DEFAULTS Section 8.1 Events of Default ................................................................................................... 56 Section 8.2 Remedies ................................................................................................................ 60 ARTICLE IX SPECIAL PROVISIONS Section 9.1 Sale of Note and Secondary Market Transaction ................................................... 63 ARTICLE X MISCELLANEOUS Section 10.1 Notices ................................................................................................................... 66 Section 10.2 Brokers and Financial Advisors ............................................................................. 68 Section 10.3 Survival .................................................................................................................. 69 Section 10.4 Preferences ............................................................................................................. 69 Section 10.5 Waiver of Notice .................................................................................................... 69 Section 10.6 Offsets, Counterclaims and Defenses .................................................................... 69 Section 10.7 Publicity ................................................................................................................. 70 Section 10.8 Construction of Documents ................................................................................... 70 Section 10.9 No Third Party Beneficiaries ................................................................................. 70 Section 10.10 Assignment ............................................................................................................ 70 Section 10.11 [Reserved] .............................................................................................................. 70 Section 10.12 Governmental Lender, Funding Lender and Servicer Not in Control; No Partnership ............................................................................................................. 70 Section 10.13 Release ................................................................................................................... 71 Section 10.14 Term of Borrower Loan Agreement ...................................................................... 71 Section 10.15 Reimbursement of Expenses .................................................................................. 71 Section 10.16 Permitted Contests ................................................................................................. 72 Section 10.17 Funding Lender Approval of Instruments and Parties ........................................... 72 Section 10.18 Funding Lender Determination of Facts ................................................................ 72 Section 10.19 Calendar Months .................................................................................................... 72 Section 10.20 Determinations by Lender ...................................................................................... 73 Section 10.21 Governing Law ...................................................................................................... 73 Section 10.22 Consent to Jurisdiction and Venue......................................................................... 73 Section 10.23 Successors and Assigns .......................................................................................... 73 Section 10.24 Severability ............................................................................................................ 73 Page 359 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda TABLE OF CONTENTS (continued) Page iv 4933-7130-2287v5/024036-0105 Section 10.25 Entire Agreement; Amendment and Waiver .......................................................... 73 Section 10.26 Counterparts ........................................................................................................... 74 Section 10.27 Captions ................................................................................................................. 74 Section 10.28 Servicer .................................................................................................................. 74 Section 10.29 Beneficiary Parties as Third Party Beneficiary ...................................................... 74 Section 10.30 Waiver of Trial by Jury .......................................................................................... 74 Section 10.31 Time of the Essence ............................................................................................... 74 Section 10.32 [Reserved] .............................................................................................................. 74 Section 10.33 Reference Date ....................................................................................................... 74 ARTICLE XI LIMITATIONS ON LIABILITY Section 11.1 Limitation on Liability ........................................................................................... 75 Section 11.2 Limitation on Liability of Governmental Lender .................................................. 75 Section 11.3 Waiver of Personal Liability .................................................................................. 75 Section 11.4 Limitation on Liability of Governmental Lender’s or Funding Lender’s Commissioners, Officers, Employees, Etc ............................................................. 75 Section 11.5 Delivery of Reports, Etc ........................................................................................ 76 Section 11.6 Electronic Transactions .......................................................................................... 76 ARTICLE XII DEFEASANCE Section 12.1 Defeasance Conditions ........................................................................................... 77 Section 12.2 Release ................................................................................................................... 80 Page 360 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 4933-7130-2287v5/024036-0105 BORROWER LOAN AGREEMENT This Borrower Loan Agreement, dated as of _______________ 1, 2026 (this “Borrower Loan Agreement”) is entered into by the CHULA VISTA HOUSING AUTHORITY, a public body corporate and politic, organized and existing under the laws of the State of California (together with its successors and assigns, the “Governmental Lender”), and MU2 AFFORDABLE LP, a California limited partnership (together with its successors and assigns, the “Borrower”). R E C I T A L S : WHEREAS, the Governmental Lender is a public body, corporate and politic, duly organized and validly existing under the laws of the State of California; and WHEREAS, the Governmental Lender is empowered pursuant to Chapter 1 of Part 2 of Division 24 of the California Health and Safety Code (the “Act”) to: (a) make loans to any person to provide financing for residential rental developments located within the City of Chula Vista, California, and intended to be occupied in part or in whole by persons of low and moderate income; (b) borrow funds for the purpose of obtaining moneys to make such loans and provide such financing, to establish necessary reserve funds and to pay administrative costs and other costs incurred in connection with any such borrowing by the Governmental Lender; and (c) pledge all or any part of the revenues, receipts or resources of the Governmental Lender, including the revenues and receipts to be received by the Governmental Lender from or in connection with such loans, and to mortgage, pledge or grant security interests in such loans or other property of the Governmental Lender in order to secure the repayment of any such borrowing by the Governmental Lender; and WHEREAS, the Borrower has applied to the Governmental Lender for a loan (the “Borrower Loan”), for the acquisition, rehabilitation, development and equipping of a 95 unit plus 1 manager’s unit multifamily rental housing project located at the Southwest corner of Santa Victoria Road and Santa Diana Road in the City of Chula Vista, County of San Diego, California, known as “Sol Vista Apartments”; and WHEREAS, the Borrower’s repayment obligations under this Borrower Loan Agreement are evidenced by the Borrower Note, as defined herein; and WHEREAS, the Borrower has requested that the Governmental Lender enter into that certain Funding Loan Agreement, of even date herewith (the “Funding Loan Agreement”), among the Governmental Lender, Wilmington Trust, National Association, as fiscal agent (the “Fiscal Agent”), and Citibank, N.A. (the “Funding Lender”), under which the Funding Lender will make a loan (the “Funding Loan”) to the Governmental Lender (and the Governmental Lender will issue its Governmental Lender Note (as defined herein) in connection therewith), the proceeds of which will be loaned under this Borrower Loan Agreement to the Borrower to finance the acquisition and construction of the Project (as defined herein); and WHEREAS, the Borrower Loan is secured by, among other things, that certain [Multifamily Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing (California)] (as amended, restated and/or supplemented from time to time, the “Security Instrument”), of even date herewith and assigned to the Funding Lender to secure the Funding Loan, encumbering the Project, and will be Page 361 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2 4933-7130-2287v5/024036-0105 advanced to the Borrower pursuant to this Borrower Loan Agreement, the Funding Loan Agreement and the Construction Funding Agreement (as defined herein); and A G R E E M E N T : NOW, THEREFORE, in consideration of the premises and the mutual representations, covenants and agreements herein contained, the parties hereto do hereby agree as follows: ARTICLE I DEFINITIONS; PRINCIPLES OF CONSTRUCTION Section 1.1 Specific Definitions. For all purposes of this Borrower Loan Agreement, except as otherwise expressly provided or unless the context otherwise requires: (a) Unless specifically defined herein, all capitalized terms shall have the meanings ascribed thereto in the Security Instrument or, if not defined in the Security Instrument, in the Funding Loan Agreement. (b) All accounting terms not otherwise defined herein shall have the meanings assigned to them, and all computations herein provided for shall be made, in acc ordance with GAAP. (c) All references in this instrument to designated “Articles,” “Sections” and other subdivisions are to the designated Articles, Sections and subdivisions of this instrument as originally executed. (d) All references in this instrument to a separate instrument are to such separate instrument as the same may be amended or supplemented from time to time pursuant to the applicable provisions thereof. (e) Unless otherwise specified, (i) all references to sections and schedules are to those in this Borrower Loan Agreement, (ii) the words “hereof,” “herein” and “hereunder” and words of similar import refer to this Borrower Loan Agreement as a whole and not to any particular provision, (iii) all definitions are equally applicable to the singular and plural forms of the terms defined and (iv) the word “including” means “including but not limited to.” Section 1.2 Definitions. The following terms, when used in this Borrower Loan Agreement (including when used in the above recitals), shall have the following meanings: “Act” shall have the meaning given to it in the recitals to this Borrower Loan Agreement. “Act of Bankruptcy” shall mean the filing of a petition in bankruptcy (or any other commencement of a bankruptcy or similar proceeding) under any applicable bankruptcy, i nsolvency, reorganization, or similar law, now or hereafter in effect; provided that, in the case of an involuntary proceeding, such proceeding is not dismissed within ninety (90) days after the commencement thereof. “ADA” shall have the meaning set forth in Section 4.1.38 hereof. “Additional Borrower Payments” shall mean the payments payable pursuant to Section 2.5 (Additional Borrower Payments), Section 2.6 hereof (Overdue Payments; Payments in Default), Page 362 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 3 4933-7130-2287v5/024036-0105 Section 3.3.3 of the Construction Funding Agreement (Borrower Loan in Balance), Section 5.14 hereof (Expenses), and Section 10 (Prepayments) of the Borrower Note. “Administrative General Partner” shall mean MU2 Affordable LLC, a California limited liability company. “Agreement of Environmental Indemnification” shall mean the Agreement of Environmental Indemnification, of even date herewith, executed by the Borrower and Guarantor for the benefit of the Beneficiary Parties (as defined therein) and any lawful holder, owner or pledgee of the Borrower Note from time to time. “Appraisal” shall mean an appraisal of the Project and Improvements, which appraisal shall be (i) performed by a qualified appraiser licensed in the State selected by Funding Lender, and (ii) satisfactory to Funding Lender (including, without limitation, as adjusted pursuant to any internal review thereof by Funding Lender) in all respects. “Approved Developer Fee Schedule” shall have the meaning set forth in the Construction Funding Agreement. “Architect” shall mean any licensed architect, space planner or design professional that Borrower may engage from time to time, with the approval of Funding Lender, to design any portion of the Improvements, including the preparation of the Plans and Specifications. “Architect’s Agreement” means any agreement that Borrower and any Architect from time to time may execute pursuant to which Borrower engages such Architect to design any portion of the Improvements, including the preparation of the Plans and Specifications, as approved by Funding Lender. “Authorized Borrower Representative” shall mean a person at the time designated and authorized to act on behalf of the Borrower by a written certificate furnished to the Governmental Lender, the Funding Lender, the Fiscal Agent and the Servicer and containing t he specimen signature of such person and signed on behalf of the Borrower by its Borrower Controlling Entity which certificate may designate one or more alternates. “Bankruptcy Code” shall mean the United States Bankruptcy Reform Act of 1978, as amended from time to time, or any substitute or replacement legislation. “Bankruptcy Event” shall have the meaning given to that term in the Security Instrument. “Bankruptcy Proceeding” shall have the meaning set forth in Section 4.1.8 hereof. “Beneficiary Parties” shall mean, collectively, the Funding Lender and the Governmental Lender. “Borrower” shall have the meaning set forth in the recitals to this Borrower Loan Agreement. “Borrower Affiliate” means, as to the Borrower, its general partner or the Guarantor, (i) any entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of Borrower, its general partner or the Guarantor, (ii) any corporation 20 percent or more of whose outstanding voting securities are directly or indirectly owned, controlled or Page 363 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 4 4933-7130-2287v5/024036-0105 held with power to vote by the Borrower, its general partner or the Guarantor, (iii) any partner of Borrower, its general partner or the Guarantor, or (iv) any other person that is related (to the third degree of consanguinity) by blood or marriage to the Borrower, its general partner or the Guarantor (to the extent any of the Borrower, its general partner or the Guarantor is a natural person ), provided that the Equity Investor shall not be a Borrower Affiliate. “Borrower Controlling Entity” shall mean the general partner of the Borrower. “Borrower Deferred Equity” shall have the meaning set forth in the Construction Funding Agreement. “Borrower Initial Equity” shall have the meaning set forth in the Construction Funding Agreement. “Borrower Loan” shall mean the mortgage loan made by the Governmental Lender to the Borrower pursuant to this Borrower Loan Agreement, in the maximum principal amount of the Borrower Loan Amount, as evidenced by the Borrower Note. “Borrower Loan Agreement” shall mean this Borrower Loan Agreement. “Borrower Loan Amount” shall mean $_____________________, the original maximum principal amount of the Borrower Note. “Borrower Loan Documents” shall mean this Borrower Loan Agreement, the Construction Funding Agreement, the Borrower Note, the Security Instrument, the Agreement of Environmental Indemnification, the Replacement Reserve Agreement, the Guaranty, the Contingency Draw Down Agreement, and all other documents or agreements evidencing or relating to the Borrower Loan. “Borrower Loan Payment Date” shall mean (i) the date upon which regularly scheduled Borrower Loan Payments are due pursuant to the Borrower Note, or (ii) any other date on which the Borrower Note are prepaid or paid, whether at the scheduled maturity or upon the acceleration of the maturity thereof. “Borrower Loan Payments” shall mean the monthly loan payments payable pursuant to the Borrower Note. “Borrower Loan Proceeds” shall mean proceeds of the Borrower Loan, to be disbursed in accordance with Section 2.10 of this Borrower Loan Agreement, Section 7.7 of the Funding Loan Agreement and the Construction Funding Agreement. “Borrower Note” shall mean that certain Multifamily Note, dated the Closing Date, in the original maximum principal amount of $_____________________, made by the Borrower and payable to the Governmental Lender, evidencing the loan of the proceeds of the Governmental Lender Note, as endorsed and assigned by the Governmental Lender without recourse to the Funding Lender, as executed by the Borrower, and as it may thereafter be amended or supplemented from time to time. “Borrower Payment Obligations” shall mean all payment obligations of the Borrower under the Borrower Loan Documents, including, but not limited to, the Borrower Loan Payments and the Additional Borrower Payments. Page 364 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 5 4933-7130-2287v5/024036-0105 “Business Day” shall mean any day other than (i) a Saturday or Sunday, or (ii) a day on which the Fiscal Agent or federally insured depository institutions in New York, New York or California are authorized or obligated by law, regulation, governmental decree or executive order to be closed. “Calendar Month” shall mean each of the twelve (12) calendar months of the year. “CC&R’s” shall mean any covenants, conditions, restrictions, maintenance agreements or reciprocal easement agreements affecting the Project or the Mortgaged Property. “Closing Date” means ________________, 2026, the date that the initial Borrower Loan Proceeds are disbursed hereunder. “Code” shall mean the Internal Revenue Code of 1986 as in effect on the Closing Date or (except as otherwise referenced herein) as it may be amended to apply to obligations issued on the Closing Date, together with applicable proposed, temporary and final regulations promulgated, and applicable official public guidance published, under the Code. “Collateral” shall mean, collectively, all collateral described in (i) this Borrower Loan Agreement (including, without limitation, all property in whi ch the Governmental Lender and/or the Funding Lender is granted a security interest pursuant to any provision of this Borrower Loan Agreement), (ii) the Security Instrument, or (iii) any other Security Document, which Collateral shall include the Project, all of which collateral (exclusive of the Unassigned Rights) is pledged and assigned to Funding Lender under the Funding Loan Agreement to secure the Funding Loan. “Completion” shall have the meaning set forth in Section 5.25. “Completion Date” shall have the meaning set forth in the Construction Funding Agreement. “Computation Date” shall have the meaning ascribed thereto in Section 1.148 3(e) of the Regulations. “Condemnation” shall mean any action or proceeding or notice relating to any proposed or actual condemnation or other taking, or conveyance in lieu thereof, of all or any part of the Project, whether direct or indirect. “Conditions to Conversion” shall have the meaning set forth in the Construction Funding Agreement. “Construction Consultant” shall mean a third-party architect or engineer selected and retained by Funding Lender, at the cost and expense of Borrower, to monitor the progress of construction and/or rehabilitation of the Project and to inspect the Improvements to confirm compliance with this Borrower Loan Agreement. “Construction Contract” shall mean any agreement that Borrower and any Contractor from time to time may execute pursuant to which Borrower engages the Contractor to construct any portion of the Improvements, as approved by Funding Lender. “Construction Funding Agreement” means that certain Construction Funding Agreement of even date herewith, between the Funding Lender, as agent for the Governmental Lender, and Borrower, pursuant to which the Borrower Loan will be advanced by the Funding Lender (or the Servicer on its Page 365 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 6 4933-7130-2287v5/024036-0105 behalf), as agent of the Governmental Lender, to the Fiscal Agent for disbursement to the Borrower and setting forth certain provisions relating to disbursement of the Borrower Loan during construction, insurance and other matters, as such agreement may be amended, modified, supplemented and replaced from time to time. “Construction Schedule” shall mean a schedule of construction or rehabilitation progress with the anticipated commencement and completion dates of each phase of construction or rehabilitation, as the case may be, and the anticipated date and amounts of each Disbursement for the same, as approved by Funding Lender, as assignee of the Governmental Lender. “Contingency Draw-Down Agreement” means the Contingency Draw-Down Agreement of even date herewith, among the Fiscal Agent, the Funding Lender and the Borrower relating to possible conversion of the portion of the Funding Loan evidenced by the Governmental Lender Note from a draw down loan to a fully funded loan. “Continuing Disclosure Agreement” shall mean that certain Continuing Disclosure Agreement of even date herewith, between the Borrower and the Funding Lender, pursuant to which the Borrower agrees to provide certain information with respect to the Project, the Borrower and the Funding Loan subsequent to the Closing Date, as amended, supplemented or restated from time to time. “Contractor” shall mean any licensed general contractor or subcontractor that Borrower may directly engage from time to time, with the approval of Funding Lender, to construct and/or rehabilitate any portion of the Improvements. “Contractual Obligation” shall mean, for any Person, any debt or equity security issued by that Person, and any indenture, mortgage, deed of trust, contract, undertaking, instrument or agreement (written or oral) to which such Person is a party or by which it is bound, or to which it or any of its assets is subject. “Conversion” shall mean Funding Lender’s determination that the Conditions to Conversion have been satisfied in accordance with the provisions of this Borrower Loan Agreement and the Construction Funding Agreement. “Conversion Date” shall mean the date to be designated by Funding Lender once the Conditions to Conversion have been satisfied, the determination of the Permanent Period Amount has been made and any loan balancing payments in accordance with Section 3.3 hereof and the Construction Funding Agreement have been made. The Conversion Date must occur no later than the Outside Conversion Date. “Cost Breakdown” shall mean the schedule of costs for the Improvements, as set forth in the Construction Funding Agreement, as the same may be amended from time to time with Funding Lender’s consent. “Costs of Funding” shall mean the Governmental Lender’s Closing Fee and the fees, costs, expenses and other charges incurred in connection with the funding of the Borrower Loan and the Funding Loan, the negotiation and preparation of this Borrower Loan Agreement and each of the other Borrower Loan Documents and Funding Loan Documents and shall include, but shall not be limited to, the following: (i) counsel fees (including but not limited to Tax Counsel, counsel to the Page 366 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 7 4933-7130-2287v5/024036-0105 Governmental Lender, Borrower’s counsel, and Funding Lender’s counsel); (ii) financial advisor fees incurred in connection with the closing of the Borrower Loan and the Funding Loan; (iii) certifying and authenticating agent fees and expenses related to funding of the Funding Loan; (iv) recording fees; (v) any additional fees charged by the Governmental Lender or the Fiscal Agent; and (vi) costs incurred in connection with any required public notices generally and costs of any public hearing related to the Funding Loan and the financing of the Project with the proceeds thereof. “Cost of Improvements” shall mean the costs for the Improvements, as set forth on the Cost Breakdown. “Costs of Funding Deposit” shall mean the amount required to be deposited by the Borrower with the Stewart Title of California, Inc. to pay Costs of Funding in connection with the closing of the Borrower Loan and the Funding Loan on the Closing Date. “Date of Disbursement” shall mean the date of a Disbursement. “Day” or “Days” shall mean calendar days unless expressly stated to be Business Days. “Debt” shall mean, as to any Person, any of such Person’s liabilities, including all indebtedness (whether recourse or nonrecourse, short term or long term, direct or contingent), all committed and unfunded liabilities, and all unfunded liabilities, that would appear upon a balance sheet of such Person prepared in accordance with GAAP. “Default Rate” shall have the meaning given to that term in the Borrower Note. “Determination of Taxability” shall mean (i) a determination by the Commissioner or any District Director of the Internal Revenue Service, (ii) a private ruling or Technical Advice Memorandum concerning the Governmental Lender Note issued by the National Office of the Internal Revenue Service in which Governmental Lender and Borrower were afforded the opportunity to participate, (iii) a determination by any court of competent jurisdiction, (iv) the enactment of legislation or (v) receipt by the Funding Lender, at the request of the Governmental Lender, the Borrower or the Funding Lender, of an opinion of Tax Counse l, in each case to the effect that the interest on the Governmental Lender Note is includable in gross income for federal income tax purposes of any holder or any former holder of all or a portion of the Governmental Lender Note, other than a holder who is a “substantial user” of the Project or a “related person” (as such terms are defined in Section 147(a) of the Code); provided, however, that no such Determination of Taxability under clause (i) or (iii) shall be deemed to have occurred if the Governmental Lender (at the sole expense of the Borrower), the Funding Lender (at the sole expense of the Borrower) or the Borrower is contesting such determination, has elected to contest such determination in good faith and is proceeding with all applicable dispatch to prosecute such contest until the earliest of (a) a final determination from which no appeal may be taken with respect to such determination, (b) abandonment of such appeal by the Governmental Lender or the Borrower, as the case may be, or (c) one year from the date of initial determination. “Developer Fee” shall have the meaning set forth in the Construction Funding Agreement. “Disbursement” means a disbursement of Borrower Loan Proceeds and Other Borrower Moneys pursuant to this Borrower Loan Agreement. Page 367 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 8 4933-7130-2287v5/024036-0105 “Engineer” shall mean any licensed civil, structural, mechanical, electrical, soils, environmental or other engineer that Borrower may engage from time to time, with the approval of Funding Lender, to perform any engineering services with respect to any portion of the Improvements. “Engineer’s Contract” shall mean any agreement that Borrower and any Engineer from time to time may execute pursuant to which Borrower engages such Engineer to perform any engineering services with respect to any portion of the Improvements, as approved by Funding Lender. “Equipment” shall have the meaning given to the term “Personalty” in the Security Instrument. “Equity Contributions” shall mean the equity to be contributed by the Equity Investor to Borrower, in accordance with and subject to the terms and conditions of the Partnership Agreement. “Equity Investor” shall mean WNC Holding, LLC, a California limited liability company, and its permitted successors and assigns in accordance with the terms of the Security Instrument and the Partnership Agreement. “ERISA” shall mean the Employment Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder. “ERISA Affiliate” shall mean all members of a controlled group of corporations and all trades and business (whether or not incorporated) under common control and all other entities which, together with the Borrower, are treated as a single employer under any or all of Section 414(b), (c), (m) or (o) of the Code. “Event of Default” shall mean any Event of Default set forth in Section 8.1 of this Borrower Loan Agreement. An Event of Default shall “exist” if a Potential Default shall have occurred and be continuing beyond any applicable cure period. “Excess Revenues” shall have the meaning ascribed thereto in Section 2.2(e) hereof. “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. “Expenses of the Project” shall mean, for any period, the current expenses, paid or accrued, for the operation, maintenance and current repair of the Project, as calculated in accordance with GAAP, and shall include, without limiting the generality of the foregoing, salaries, wages, employee benefits, cost of materials and supplies, costs of routine repairs, renewals, replacements and alterations occurring in the usual course of business, costs and expenses properly designated as capital expenditures (e.g. repairs which would not be payable from amounts on deposit in a repair and replacement fund held pursuant to the Borrower Loan Documents), a management fee (however characterized) not to exceed the Underwritten Management Fee, costs of billings and collections, costs of insurance, and costs of audits. Expenses of the Project shall not include any payments, however characterized, on account of any subordinate financing in respect of the Project or other indebtedness, allowance for depreciation, amortization or other non-cash items, gains and losses or prepaid expenses not customarily prepaid. “Fair Market Value” shall mean the price at which a willing buyer would purchase the investment from a willing seller in a bona fide, arm’s length transaction (determined as of the date the contract to purchase or sell the investment becomes binding) if the investment is traded on an Page 368 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 9 4933-7130-2287v5/024036-0105 established securities market (within the meaning of Section 1273 of the Code) and, otherwise, the term “Fair Market Value” means the acquisition price in a bona fide arm’s length transaction (as referenced above) if (i) the investment is a certificate of deposit that is acquired in accordance with applicable regulations under the Code, (ii) the investment is an agreement with specifically negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate (for example, a guaranteed investment contract, a forward supply contract or other investment agreement) that is acquired in accordance with applicable regulations under the Code, (iii) the investment is a United States Treasury Security State and Local Government Series that is acquire d in accordance with applicable regulations of the United States Bureau of Public Debt, or (iv) the investment is an interest in any commingled investment fund in which the Governmental Lender and related parties do not own more than a ten percent (10%) beneficial interest therein if the return paid by the fund is without regard to the source of the investment. To the extent required by U.S. Treasury Regulations, the term “investment” will include a hedge. “Fiscal Agent” shall mean the Fiscal Agent from t ime to time under and pursuant to the Funding Loan Agreement. Initially, the Fiscal Agent is Wilmington Trust, National Association “Force Majeure” shall have the meaning given to that term in the Construction Funding Agreement. “Funding Lender” shall mean Citibank, N.A., a national banking association, in its capacity as lender under the Funding Loan. “Funding Loan” means the Funding Loan in the original maximum principal amount of $_____________________ made by Funding Lender to Governmental Lender under the Funding Loan Agreement, the proceeds of which are used by the Governmental Lender to make the Borrower Loan. “Funding Loan Agreement” means the Funding Loan Agreement, of even date herewith, among the Governmental Lender, the Fiscal Agent and the Funding Lender, as it may from time to time be supplemented, modified or amended by one or more amendments or other instruments supplemental thereto entered into pursuant to the applicable provisions thereof. “Funding Loan Documents” shall have the meaning given to that term in the Funding Loan Agreement. “GAAP” shall mean generally accepted accounting principles as in effect on the date of the application thereof and consistently applied throughout the periods covered by the applicable financial statements. “General Partner” shall mean, collectively, (i) the Administrative General Partner, (ii) the Managing General Partner, and/or (iii) any other Person that the partners of the Borrower, with the prior written approval of the Funding Lender (or as otherwise permitted with the Funding Lender’s approval pursuant to the Borrower Loan Documents), selected to be a general partner of the Borrower. “Governmental Authority” shall mean (i) any governmental municipality or political subdivision thereof, (ii) any governmental or quasi-governmental agency, authority, board, bureau, commission, department, instrumentality or public body, or (iii) any court, administrative tribunal or public utility, agency, commission, office or authority of any nature whatsoever for any governmental unit (federal, state, county, district, municipal, city or otherwise), now or hereafter in existence. Page 369 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 10 4933-7130-2287v5/024036-0105 “Governmental Lender” shall have the meaning set forth in the recitals to this Borrower Loan Agreement. “Governmental Lender Note” shall mean that certain Chula Vista Housing Authority Multifamily Housing Revenue Note (Sol Vista Apartments) 2026 Series A, dated the Closing Date, in the original maximum principal amount of $_____________________, made by the Governmental Lender and payable to the Funding Lender, as executed by the Governmental Lender and as it may thereafter be amended or supplemented from time to time. “Governmental Lender’s Closing Fee” shall mean the administrative fees of the Governmental Lender payable on the Closing Date, as specified in the definition of “Governmental Lender Fee” in the Regulatory Agreement. The Governmental Lender’s Closing Fee is payable to the Governmental Lender on the Closing Date pursuant to Section 2.3(c)(iii) hereof. “Gross Income” shall mean all receipts, revenues, income and other moneys received or collected by or on behalf of Borrower and derived from the ownership or operation of the Project, if any, and all rights to receive the same, whether in the form of accounts, accounts receivable, contract rights or other rights, and the proceeds of such rights, and whether now owned or held or hereafter coming into existence and proceeds received upon the foreclosure sale of the Project. Gross Income shall not include loan proceeds, equity or capital contributions, or tenant security deposits being held by Borrower in accordance with applicable law. “Gross Proceeds” shall mean, without duplication, the aggregate of: (a) the net amount (after payment of all expenses of originating the Funding Loan) of Funding Loan proceeds received by the Governmental Lender as a result of the origination of the Funding Loan; (b) all amounts received by the Governmental Lender as a result of the investment of the Funding Loan proceeds; (c) any amounts held in any fund or account to the extent that the Governmental Lender reasonably expects to use the amounts in such fund to pay any portion of the Funding Loan; and (d) any securities or obligations pledged by the Governmental Lender or by the Borrower as security for the payment of any portion of the Funding Loan. “Guarantor” shall mean [(i) _________________, a _________________], and (ii) any other person or entity which may hereafter become a guarantor of any of the Borrower ’s obligations under the Borrower Loan. “Guaranty” shall mean, collectively, (i) the Completion and Repayment Guaranty, by Guarantor for the benefit of the Beneficiary Parties (as defined therein), and (ii) the Exceptions to Non- Recourse Guaranty, by Guarantor for the benefit of the Beneficiary Parties (as defined therein). “Improvements” shall mean the 95-unit plus 1 manager’s unit multifamily rental housing project to be rehabilitated upon the Land and known as “Sol Vista Apartments”, and all other buildings, structures, fixtures, wiring, systems, equipment and other improvements and personal property to be Page 370 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 11 4933-7130-2287v5/024036-0105 constructed, rehabilitated and/or installed at or on the Land in accordance with the Cost Breakdown and the Plans and Specifications. “Indemnified Party” shall have the meaning set forth in Section 5.15 hereof. “Installment Computation Date” shall mean any Computation Date other than the first Computation Date or the final Computation Date. “Interest Rate” shall mean the rate of interest accruing on the Borrower Loan pursuant to the Borrower Note. “Interim Phase Amount” shall mean $_____________________. “Land” means the real property described on Exhibit A to the Security Instrument. “Late Charge” shall mean the amount due and payable as a late charge on overdue payments under the Borrower Note, as provided in Section 7 of the Borrower Note and Section 2.5 hereof. “Legal Action” shall mean an action, suit, investigation, inquiry, proceeding or arb itration at law or in equity or before or by any foreign or domestic court, arbitrator or other Governmental Authority. “Legal Requirements” shall mean statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities affecting all or part of the Project or any property (including the Project) or the construction, rehabilitation, use, alteration or operation thereof, whether now or hereafter enacted and in force, and all permits, licenses and authorizations and regulations relating thereto, and all covenants, agreements, restrictions and encumbrances contained in any instrument, either of record or known to the Borrower, at any time in force affecting all or part of the Project, including any that may (i) require repairs, modifications or alterations in or to all or part of the Project, or (ii) in any way limit the use and enjoyment thereof. “Liabilities” shall have the meaning set forth in Section 5.15 hereof. “Licenses” shall have the meaning set forth in Section 4.1.22 hereof. “Lien” shall mean any interest, or claim thereof, in the Project securing an obligation owed to, or a claim by, any Person other than the owner of the Project, whether such interest is based on common law, statute or contract, including the lien or security interest arising from a deed of trust, mortgage, deed to secure debt, assignment, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes. The term “Lie n” shall include reservations, exceptions, encroachments, easements, rights of way, covenants, conditions, restrictions, leases and other title exceptions and encumbrances affecting the Project. “Management Agreement” shall mean the Management Agreement between the Borrower and the Manager, pursuant to which the Manager is to manage the Project, as same may be amended, restated, replaced, supplemented or otherwise modified from time to time. “Manager” shall mean the management company to be employed by the Borrower and approved by the Funding Lender in accordance with the terms of the Security Instrument, this Borrower Loan Agreement or any of the other Borrower Loan Documents. Page 371 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 12 4933-7130-2287v5/024036-0105 “Managing General Partner” shall mean SBCS Corporation, a California nonprofit public benefit corporation, as managing general partner of the Borrower. “Material Adverse Change” means any set of circumstances or events which (a) has or could reasonably be expected to have any material adverse effect whatsoever upon the validity or enforceability of this Borrower Loan Agreement or any other Borrower Loan Document; (b) is or could reasonably be expected to be material and adverse to the business, properties, assets, financial condition, results of operations of the Borrower, General Partner, Guarantor or the Mortgaged Property; (c) could reasonably be expected to impair materially the ability of the Borrower, General Partner or Guarantor to duly and punctually pay or perform any of their respective obligations under any of the Borrower Loan Documents to which they are a party; or (d) impairs materially or could reasonably be expected to impair materially any rights of or benefits available to the Governmental Lender under this Borrower Loan Agreement or any other Borrower Loan Document, inc luding, without limitation, the ability of Governmental Lender or, upon the assignment of the Borrower Loan to it, of the Funding Lender, to the extent permitted, to enforce its legal remedies pursuant to this Borrower Loan Agreement or any other Borrower Loan Document. “Moody’s” shall mean Moody’s Investors Service, Inc., or its successor. “Mortgaged Property” shall have the meaning given to that term in the Security Instrument. “Net Operating Income” shall mean: (i) the Gross Income, less (ii) the Expenses of the Project. “Nonpurpose Investment” shall mean any investment property (as defined in Section 148(b) of the Code) that is acquired with the Gross Proceeds of the Funding Loan and which is not acquired to carry out the governmental purpose of the Funding Loan. “Ongoing Governmental Lender Fee” shall mean the ongoing portion of the Annual Administration Fee (as that term is defined in the Regulatory Agreement) that is payable after the Closing Date. “Other Borrower Moneys” shall mean monies of Borrower other than Borrower Loan Proceeds and includes, but is not limited to, the Subordinate Debt, the Net Operating Income, the Borrower’s Equity Contributions and any other funds contributed by or loaned to the Borrower for application to the Costs of the Improvements or other costs associated with the Project. “Other Charges” shall mean all maintenance charges, impositions other than Taxes, and any other charges, including vault charges and license fees for the use of vaults, chutes and similar areas adjoining the Project, now or hereafter levied or assessed or imposed against the Project or any part thereof. “Outside Conversion Date” shall have the meaning set forth in the Construction Funding Agreement. “Partnership Agreement” shall mean that certain Amended and Restated Agreement of Limited Partnership of the Borrower dated as of ______________, 2026, as the same may be amended, restated or modified from time to time in accordance with its terms. Page 372 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 13 4933-7130-2287v5/024036-0105 “Patriot Act” shall mean the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA PATRIOT ACT) of 2001, as the same may be amended from time to time, and corresponding provisions of future laws. “Patriot Act Offense” shall have the meaning set forth in Section 4.1.48 hereof. “Permanent Period” shall mean the period of time from the Conversion Date to the Maturity Date (as defined in the Funding Loan Agreement). “Permanent Period Amount” shall mean the principal amount of the Borrower Loan as of the first day of the Permanent Period following the applicable calculation provided for in the Construction Funding Agreement. “Permitted Encumbrances” shall have the meaning given to that term in the Security Instrument. “Permitted Lease” shall mean a lease and occupancy agreement pursuant to the form approved by Funding Lender, to a residential tenant in compliance with the Legal Requirements, providing for an initial term of not less than six (6) months nor more than two (2) years. “Person” shall mean a natural person, a partnership, a joint venture, an unincorporated association, a limited liability company, a corporation, a trust, any other legal entity, or any Governmental Authority. “Plan” shall mean (i) an employee benefit or other plan established or maintained by the Borrower or any ERISA Affiliate or to which the Borrower or any ERISA Affiliate makes or is obligated to make contributions and (ii) which is covered by Title IV of ERISA or Section 302 of ERISA or Section 412 of the Code. “Plans and Specifications” shall mean the plans and specifications for the construction and/or rehabilitation, as the case may be, of the Project approved by Funding Lender. “Potential Default” shall mean the occurrence of an event which, under this Borrower Loan Agreement or any other Borrower Loan Document, would, but for the giving of notice or passage of time, or both, be an Event of Default. “Prepayment Premium” shall mean any premium payable by the Borrower pursuant to the Borrower Loan Documents in connection with a prepayment of the Borrower Note (including any prepayment premium as set forth in the Borrower Note). “Project” shall mean the Mortgaged Property (as defined in the Security Instrument) and Improvements thereon owned by the Borrower and encumbered by the Security Instrument, together with all rights pertaining to such real property and Improvements, as more particularly described in the Granting Clauses of the Security Instrument and referred to therein as the “Mortgaged Property.” “Project Agreements and Licenses” shall mean any and all Construction Contracts, Engineer’s Contracts and Management Agreements, and all other rights, licenses, permits, franchises, authorizations, approvals and agreements relating to use, occupancy, operation or leasing of the Proje ct or the Mortgaged Property. Page 373 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 14 4933-7130-2287v5/024036-0105 “Provided Information” shall have the meaning set forth in Section 9.1.1 (a) hereof. “Qualified Project Costs” shall have the meaning given to it in the Regulatory Agreement. “Rebate Amount” shall mean, for any given period, the amount determined by the Rebate Analyst as required to be rebated or paid as a yield reduction payment to the United States of America with respect to the Funding Loan evidenced by the Governmental Lender Note. “Rebate Analyst” shall mean the rebate analyst selected by the Borrower and acceptable to the Governmental Lender and the Funding Lender. “Rebate Analyst’s Fee” shall mean the annual fee of the Rebate Analyst payable by the Borrower to the Rebate Analyst. “Rebate Fund” shall mean the Rebate Fund created pursuant to Section 5.35 hereof. “Regulatory Agreement” means the Regulatory Agreement and Declaration of Restrictive Covenants, dated as of _______________ 1, 2026, between the Governmental Lender and the Borrower. “Related Documents” shall mean, collectively, any agreement or other document (other than the Borrower Loan Documents) granting a security interest (including each agreement that is the subject of any Borrower Loan Document), and any other agreement, instrument or other document (not constituting a Borrower Loan Document) relating to or executed in connection with the transactions contemplated by this Borrower Loan Agreement, but not including the Partnership Agreement. “REMIC” means a “real estate mortgage investment conduit” within the meaning of Section 860D of the Tax Code. “Replacement Reserve Agreement” shall mean the Replacement Reserve Agreement, of even date herewith, between the Borrower and the Funding Lender, as the same may be amended, restated or supplemented from time to time. “Replacement Reserve Fund Requirement” means Borrower’s funding obligations from time to time under the Replacement Reserve Agreement. “Retainage” shall have the meaning set forth in the Construction Funding Agreement. “Review Fee” shall mean the Three Thousand Dollar ($3,000) fee payable to Funding Lender in connection with the review of requests from the Borrower in connection with events requiring the consent and/or approval of the Funding Lender, including, but not limited to, subordinate financings and easements. “Secondary Market Disclosure Document” shall have the meaning set forth in Section 9.1.2 hereof. “Secondary Market Transaction” shall have the meaning set forth in Section 9.1.1 hereof. “Securities” shall have the meaning set forth in Section 9.1.1 hereof. Page 374 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 15 4933-7130-2287v5/024036-0105 “Securities Act” shall mean the Securities Act of 1933, as amended. “Security Documents” shall mean the Security Instrument, the Replacement Reserve Agreement, the Collateral Agreements, the Collateral Assignments, this Borrower Loan Agreem ent, the Agreement of Environmental Indemnification, and such other security instruments that Funding Lender may reasonably request. “Security Instrument” shall have the meaning set forth in the recitals to this Borrower Loan Agreement. “Servicer” shall mean the Servicer contracting with or appointed by the Funding Lender to service the Borrower Loan. The initial Servicer shall be Citibank, N.A. “Servicing Agreement” shall mean any servicing agreement or master servicing agreement, between the Servicer and the Funding Lender relating to the servicing of the Borrower Loan and any amendments thereto or any replacement thereof. “Special Limited Partner” shall mean WNC Housing, L.P., a California limited partnership, and its permitted successors and assigns in accordance with the terms of the Partnership Agreement. “Standard & Poor’s” or “S&P” shall mean S&P Global Ratings, a business unit of Standard & Poor’s Rating Services, or its successors. “State” shall mean the State in which the Project is located. “Subordinate Debt” shall mean [the subordinate, taxable construction and permanent loan to Borrower in the amount of $[_____] being made by the Funding Lender as of the Closing Date and the seller take-back loan in the amount of $____________________ being made by ________________]. “Subordinate Lender” shall mean the Funding Lender and __________________, a __________________________, as applicable. “Subordinate Loan Documents” shall mean all instruments, agreements and other documents evidencing, securing or otherwise relating to the Subordinate Debt or executed and delivered by Borrower and/or Subordinate Lender in connection with the Subordinate Debt. “Substantial Completion Date” shall have the meaning set forth in the Construction Funding Agreement. “Substantially Complete” or “Substantially Completed” shall have the meaning set forth in the Construction Funding Agreement. “Tax Counsel” shall have the meaning set forth in the Funding Loan Agreement. “Taxes” shall mean all real estate and personal prope rty taxes, assessments, water rates or sewer rents, now or hereafter levied or assessed or imposed against all or part of the Project. “Term” shall mean the term of this Borrower Loan Agreement pursuant to Section 10.14. “Title Company” means First American Title Company. Page 375 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 16 4933-7130-2287v5/024036-0105 “Title Insurance Policy” shall mean the mortgagee title insurance policy, in form acceptable to the Funding Lender, issued with respect to the Mortgaged Property and insuring the lien of the Security Instrument. “Transfer” shall have the meaning given to that term in the Security Instrument. “UCC” shall mean the Uniform Commercial Code as in effect in the State. “Unassigned Rights” shall have the meaning set forth in the Funding Loan Agreement. “Underwritten Management Fee” shall have the meaning set forth in the Construction Funding Agreement. “Unit” shall mean a residential apartment unit within the Improvements. “Written Consent” and “Written Notice” shall mean a written consent or notice signed by an Authorized Borrower Representative or an authorized representative of the Governmental Lender or the Funding Lender or the Fiscal Agent, as appropriate. ARTICLE II GENERAL Section 2.1 Origination of Borrower Loan. In order to provide funds for the purposes provided herein, the Governmental Lender agrees that it will, in accordance with the Act, enter into the Funding Loan Agreement and accept the Funding Loan from the Funding Lender. The proceeds of the Funding Loan shall be advanced by the Funding Lender and disbursed by the Fiscal Agent to the Borrower in accordance with the terms of the Construction Funding Agreement, the Funding Loan Agreement, and this Borrower Loan Agreement; provided that the first such disbursement on the Closing Date shall be made by the Funding Lender to the Fiscal Agent, which shall transfer such funds to the Title Company as specified in Section 7.7(a) of the Funding Loan Agreement. The Governmental Lender hereby appoints the Funding Lender as its agent with full authority and power to act on its behalf to disburse the Borrower Loan to the Fiscal Agent (which shall disburse any amounts so received to the Borrower) for the account of the Governmental Lender, to take certain actions and exercise certain remedies with respect to the Borrower Loan, and for the other purposes set forth in this Borrower Loan Agreement and to do all other acts necessary or incidental to the performance and execution thereof. This appointment is coupled with an interest and is irrevocable except as expressly set forth herein. Accordingly, references to the rights of the Funding Lender to take actions under this Borrower Loan Agreement shall refer to Funding Lender in its role as agent of the Governmental Lender. The Funding Lender may, in its discretion, designate Servicer to fulfill the rights and responsibilities granted by Governmental Lender to Funding Lender pursuant to this Section 2.1. Notwithstanding the foregoing, disbursements of the Borrower Loan shall be made from the Project Fund held by the Fiscal Agent pursuant to the Funding Loan Agreement. Section 2.2 Security for the Funding Loan. (a) As security for the Funding Loan, the Governmental Lender has pledged and assigned to the Funding Lender under and pursuant to the Funding Loan Agreement (a) the Borrower Note and all of its right, title and interest in and t o this Borrower Loan Agreement and the Borrower Page 376 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 17 4933-7130-2287v5/024036-0105 Loan Documents (except for the Unassigned Rights) and all revenues and receipts therefrom and the security therefor (including the Security Instrument) and (b) the amounts on deposit from time to time in any and all funds established under the Funding Loan Agreement. All revenues and assets pledged and assigned thereby shall immediately be subject to the lien of such pledge without any physical delivery thereof or any further act, except in the case of the Bo rrower Note, which shall be delivered to the Funding Lender. The Borrower hereby acknowledges and consents to such assignment to the Funding Lender. (b) With respect to the Unassigned Rights, subject to the limitations set forth in this Section 2.2, the Governmental Lender may: (i) Tax Covenants. Seek specific performance of, and enforce, the tax covenants in Section 8.7 of the Funding Loan Agreement, the provisions of the Regulatory Agreement, the Tax Certificate and the covenants of the Borrower in Section 5.34 of this Borrower Loan Agreement, and seek injunctive relief against acts which may be in violation of any of the foregoing covenants, and enforce the Borrower’s obligation under Section 5.35 to pay amounts for credit to the Rebate Fund; (ii) Regulatory Agreement. Seek specific performance of the obligations of the Borrower or any other owner of the Project under the Regulatory Agreement and injunctive relief against acts which may be in violation of the Regulatory Agreement or otherwise in accordance with the provisions of the Regulatory Agreement; provided, however, that the Governmental Lender may enforce any right it may have under the Regulatory Agreement for monetary damages only against Excess Revenues (defined below), if any, of the Borrower, unless Funding Lender otherwise specifically consents in writing to the use of other funds; and (iii) Reserved Rights. Take whatever action at law or in equity which appears necessary or desirable to enforce the other Unassigned Rights, provided, however, that the Governmental Lender or any person under its control may only enforce any right it may have for monetary damages against Excess Revenues, if any, of the Borrower, unless Funding Lender otherwise specifically consents in writing to the enforcement against other fun ds of the Borrower. (c) In no event shall the Governmental Lender, except at the express written direction of the Funding Lender: (i) prosecute its action to a lien on the Project; or (ii) except in connection with actions under Section 2.2(b) above, take any action which may have the effect, directly or indirectly, of impairing the ability of the Borrower to timely pay the principal of, interest on, or other amounts due under, the Borrower Loan or of causing the Borrower to file a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Borrower under any applicable liquidation, insolvency, bankruptcy, rehabilitation, composition, reorganization, conservation or other similar law in effect now or in the future; or (iii) interfere with the exercise by Funding Lender or Servicer of any of their rights under the Borrower Loan Documents upon the occurrence of an event of default by the Borrower under the Borrower Loan Documents or the Funding Loan Documents; or Page 377 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 18 4933-7130-2287v5/024036-0105 (iv) take any action to accelerate or otherwise enforce payment or seek other remedies with respect to the Borrower Loan or the Funding Loan. (d) The Governmental Lender shall provide Written Notice to the Funding Lender and the Servicer immediately upon taking any action at law or in equity to exercise any remedy or direct any proceeding under the Borrower Loan Documents or the Funding Loan Documents. (e) As used in this Section 2.2, the term “Excess Revenues” means, for any period, the net cash flow of the Borrower available for distribution to shareholders, members or partners (as the case may be) for such period, after the payment of all interest expense, the amortization of all principal of all indebtedness coming due during such period (whether by maturity, mandatory sinking fund payment, acceleration or otherwise), the payment of all fees, costs and expenses on an occasional or recurring basis in connection with the Borrower Loan or the Funding Loan, the payment of all operating, overhead, ownership and other expenditures of the Borrower dire ctly or indirectly in connection with the Project (whether any such expenditures are current, capital or extraordinary expenditures), and the setting aside of all reserves for taxes, insurance, water and sewer charges or other similar impositions, capital expenditures, repairs and replacements and all other amounts which the Borrower is required to set aside pursuant to agreement, but excluding depreciation and amortization of intangibles. Section 2.3 Loan; Borrower Note; Conditions to Closing. (a) The Funding Loan shall be funded directly to the Fiscal Agent by the Funding Lender for disbursement to the Borrower pursuant to the Construction Funding Agreement in one or more installments not to exceed the Borrower Loan Amount in accordance with the disbursement procedures set forth in the Construction Funding Agreement and the Funding Loan Agreement, except for the initial disbursement of the Funding Loan as provided in Section 7.7(a) of the Funding Loan Agreement. Upon funding of each installment of the Funding Loan, the Governmental Lender shall be deemed to have made the Borrower Loan to the Borrower in a like principal amount. The Borrower Loan shall mature and be payable at the times and in the amounts required under the terms hereof and of the Borrower Note. The proceeds of the Borrower Loan shall be used by the Borrower to pay costs of the acquisition, construction, rehabilitation, development, equipping and/or operation of the Project. The Borrower hereby accepts the Borrower Loan and acknowledges that the Governmental Lender shall cause the Funding Lender to fund the Borrower Loan in the manner set forth herein, in the Construction Funding Agreement, and in the Funding Loan Agreement. The Governmental Lender acknowledges that the Borrower Loan shall be funded by the Funding Lender to the Fiscal Agent for the account of the Governmental Lender, except as otherwise provided in Section 7.7 of the Funding Loan Agreement with respect to the funding thereof on the Closing Date. Proceeds of the Borrower Loan will be deposited in the Note Proceeds Account of the Project Fund held by the Fiscal Agent under the Funding Loan Agreement on the Closing Date, and the Funding Lender shall fund all or a portion of the Borrower Loan to the Fiscal Agent for further disbursement to the Borrower upon receipt from the Borrower of a Written Requisition in accordance with the terms of the Funding Loan Agreement and the Construction Funding Agreement. (b) The Borrower hereby accepts the Borrower Loan. As evidence of its obligation to repay the Borrower Loan, simultaneously with its execution and delivery of this Borrower Loan Agreement, the Borrower hereby agrees to execute and deliver the Borrower Note. The Borrower Page 378 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 19 4933-7130-2287v5/024036-0105 Loan shall mature and be payable at the times and in the amounts required under the terms hereof and of the Borrower Note. (c) Closing of the Borrower Loan on the Closing Date shall be conditioned upon satisfaction or waiver by the Governmental Lender and the Funding Lender, in their sole discretion, of each of the conditions precedent to closing set forth in the Funding Loan Agreement and this Borrower Loan Agreement, in the Construction Funding Agreement and in the Funding Loan Agreement, including but not limited to the following: (i) evidence of proper recordation of the Security Instrument, an assignment of the Security Instrument from the Governmental Lender to the Funding Lender, the Regulatory Agreement, and each of the other documents specified for recording in instructions delivered to the Title Company by counsel to the Funding Lende r (or that such documents have been delivered to an authorized agent of the Title Company for recordation under binding recording instructions from Funding Lender’s counsel or such other counsel as may be acceptable to the Funding Lender); (ii) delivery to the Fiscal Agent or into escrow with the Title Company (or separate escrow company, if applicable) of all amounts required to be paid in connection with the origination of the Borrower Loan and the Funding Loan and any underlying real estate transfers or transactions, including the Costs of Funding Deposit and the Borrower Initial Equity, all as specified in written instructions delivered to the Title Company by counsel to the Funding Lender (or such other counsel as may be acceptable to the Funding Lender) and/or as specified in a closing memorandum of the Funding Lender; and (iii) payment of all fees payable in connection with the closing of the Borrower Loan including the Governmental Lender’s Closing Fee and the initial fees and expenses of the Fiscal Agent and the Funding Lender. In addition, closing of the Borrower Loan shall be subject to the delivery of an opinion of counsel to the Borrower addressed to the Governmental Lender and the Funding Lender, dated the Closing Date, in form and substance acceptable to T ax Counsel, regarding the due execution by the Borrower of, and the enforceability against the Borrower of, the Borrower Loan Documents. Section 2.4 Borrower Loan Payments. (a) The Borrower shall make Borrower Loan Payments in accordance with the Borrower Note. Each Borrower Loan Payment made by the Borrower shall be made in funds immediately available through and including the Conversion Date on the Borrower Loan Payment Date, to the Fiscal Agent by 2:00 p.m., New York City time, or, if to the Servicer by 11:00 a.m., New York City time, and after the Conversion Date on the date that is two (2) Business Days prior to the Borrower Loan Payment Date to the Servicer, by 11:00 a.m., New York City time. Each such payment shall be made to the Fiscal Agent or the Servicer, as applicable, by deposit to such account as the Fiscal Agent or Servicer, as applicable, may designate by Written Notice to the Borrower. If payments are to be made to the Fiscal Agent, such payments shall be deposited into the Funding Loan Payment Fund established under the Funding Loan Agreement. Whenever any Borrower Loan Payment shall be stated to be due on a day that is not a Business Day, such payment shall be due on the first Business Day immediately thereafter. In addition, the Borrower shall make Borrower Loan Payments in accordance with the Borrower Note in the amounts and at the times necessary to make all payments due and Page 379 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 20 4933-7130-2287v5/024036-0105 payable on the Funding Loan. All payments made by the Borrower hereunder or by the Borrower under the other Borrower Loan Documents, shall be made irrespective of, and without any deduction for, any set-offs or counterclaims, but such payment shall not constitute a waiver of any such set offs or counterclaims. (b) Unless there is no Servicer, payments of principal and interest on the Borrower Note shall be paid to the Servicer and the Servicer shall then remit such funds to the Fiscal Agent. If there is no Servicer, payments of principal and interest on the Borrower Note shall be paid directly to the Fiscal Agent. Section 2.5 Additional Borrower Payments. (a) The Borrower shall pay the following amounts: (i) to the Fiscal Agent, the Rebate Amount then due, if any, to be deposited in the Rebate Fund as specified in Section 5.35 hereof and the Rebate Analyst’s Fee and any other costs incurred to calculate such Rebate Amount (to the extent such costs are not included in the Borrower Loan Payment); (ii) to the Governmental Lender, any and, on demand, all fees, charges, costs, advances, indemnities and expenses, including agent and counsel fees, of the Governmental Lender incurred by the Governmental Lender at any time in connection with the Borrower Loan Documents, the Funding Loan Documents or the Project, including, without limitation, the Ongoing Governmental Lender Fee, counsel fees and expenses incurred in connection with the interpretation, performance, or amendment and all counsel fees and expenses relating to the enforcement of the Borrower Loan Documents or the Funding Loan Documents or any other documents relating to the Project or the Borrower Loan or in connection with questions or other matters arising under such documents or in connection with any federal or state tax audit; (iii) to the Fiscal Agent, the Fiscal Agent Fees; (iv) all Costs of Funding and fees, charges and expenses, including agent and counsel fees incurred in connection with the origination of the Borrower Loan and the Funding Loan, as and when the same become due; (v) to the Funding Lender, on demand, all charges, costs, advances, indemnities and expenses, including agent and counsel fees, of the Fundin g Lender incurred by the Funding Lender at any time in connection with the Borrower Loan, the Funding Loan or the Project, including, without limitation, any Review Fee, reasonable counsel fees and expenses incurred in connection with the interpretation, performance, or amendment and all counsel fees and expenses relating to the enforcement of the Borrower Loan Documents or the Funding Loan Documents or any other documents relating to the Project or the Borrower Loan or in connection with questions or other matters arising under such documents or in connection with any federal or state tax audit; (vi) all Late Charges due and payable under the terms of the Borrower Note and Section 2.6 hereof; provided, however, that all payments made pursuant to this subsection (vi) shall be made to the Servicer, and if there is no Servicer, such payments shall be made to the Funding Lender; and Page 380 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 21 4933-7130-2287v5/024036-0105 (vii) to the Fiscal Agent, all fees, charges, costs, advances, indemnities and expenses, including agent and counsel fees, of Fiscal Agent incurred under the Borrower Loan Documents or the Funding Loan Documents as and when the same become due. (b) The Borrower shall pay to the party entitled thereto as expressly set forth in this Borrower Loan Agreement or the other Borrower Loan Documents or Funding Loan Documents: (i) all expenses incurred in connection with the enforcement of any rights under this Borrower Loan Agreement or any other Borrower Loan Document, the Regulatory Agreement, or any Funding Loan Document by the Governmental Lender, the Funding Lender, the Fiscal Agent or the Servicer; (ii) all other payments of whatever nature that the Borrower has agreed to pay or assume under the provisions of this Borrower Loan Agreement or any other Borrower Loan Document or Funding Loan Document; and (iii) all expenses, costs and fees relating to inspections of the Project required by the Governmental Lender, the Funding Lender, the Fiscal Agent, the Servicer or the Construction Consultant, in accordance with the Borrower Loan Documents or the Funding Loan Documents or to reimburse such parties for such expenses, costs and fees. Section 2.6 Overdue Payments; Payments in Default. If any Borrower Payment Obligation is not paid by or on behalf of the Borrower when due, the Borrower shall pay to the Servicer a Late Charge in the amount and to the extent set forth in the Borrower Note, if any. Section 2.7 Calculation of Interest Payments and Deposits to Real Estate Related Reserve Funds. The Borrower acknowledges as follows: (a) calculation of all interest payments shall be made by the Funding Lender; (b) deposits with respect to the Taxes and Other Charges shall be calculated by the Servicer or if there is no Servicer, the Funding Lender in accordance with the Security Instrument; and (c) deposits with respect to any replacement reserve funds required by the Funding Lender shall be calculated by the Servicer in accordance with the Replacement Reserve Agreement. In the event and to the extent that the Servicer or the Funding Lender, pursuant to the terms hereof, shall determine at any time that there exists a deficiency in amounts previously owed but not paid with respect to deposits to such replacement reserve fund, such deficiency shall be immediately due and payable hereunder following Written Notice to the Borrower. Section 2.8 Grant of Security Interest; Application of Funds. To the extent not inconsistent with the Security Instrument and as security for payment of the Borrower Payment Obligations and the performance by the Borrower of all other terms, conditions and provisions of the Borrower Loan Documents, the Borrower hereby pledges and assigns to the Fiscal Agent and the Funding Lender, and grants to the Fiscal Agent and the Funding Lender, a security interest in, all the Borrower’s right, title and interest in and to all payments to or moneys held in the funds and accounts created and held by the Fiscal Agent, the Funding Lender or the Servicer for the Project. This Borrower Loan Agreement is, among other things, intended by the parties to be a security agreement for purposes of the UCC. Upon the occurrence and during the continuance of an Event of Default hereunder, the Fiscal Agent, the Funding Lender and the Servicer shall apply or cause to be applied any sums held by the Fiscal Agent, the Funding Lender and the Servicer with respect to the Project in accordance with the provisions of Article IX of the Funding Loan Agreement to the extent appli cable and otherwise in Page 381 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 22 4933-7130-2287v5/024036-0105 any manner and in any order determined by Funding Lender, in Funding Lender’s sole and absolute discretion. Section 2.9 Marshalling; Payments Set Aside. The Governmental Lender, the Fiscal Agent and the Funding Lender shall be under no obligation to marshal any assets in favor of the Borrower or any other Person or against or in payment of any or all of the proceeds. To the extent that the Borrower makes a payment or payments or transfers any assets to the Governmental Lender, the Fiscal Agent or the Funding Lender, or the Governmental Lender, the Fiscal Agent or the Funding Lender enforces its liens, and such payment or payments or transfers, or the proceeds of such enforcement or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party in connection with any insolvency proceeding, or otherwise, then: (i) any and all obligations owed to the Governmental Lender, the Fiscal Agent or the Funding Lender and any and all remedies available to the Governmental Lender, the Fiscal Agent or the Funding Lender under the terms of the Borrower Loan Documents and the Funding Loan Documents or in law or equity against the Borrower, Guarantor or General Partner and/or any of their properties shall be automatically revived and reinstated to the extent (and only to the extent) of any recovery permitted under clause (ii) below; and (ii) the Governmental Lender, the Fiscal Agent and the Funding Lender shall be entitled to recover (and shall be entitled to file a proof of claim to obtain such recovery in any applicable bankruptcy, insolvency, receivership or fraudulent conveyance or fraudulent transfer proceeding) either: (x) the amount of payments or the value of the transfer or (y) if the transfer has been undone and the assets returned in whole or in part, the value of the consideration paid to or received by the Borrower for the initial asset transfer, plus in each case any deferred interest from the date of the disgorgement to the date of distribution to the Governmental Lender, the Fiscal Agent or the Funding Lender in any bankruptcy, insolvency, receivership or fraudulent conveyance or fraudulent transfer proceeding, and any costs and expenses due and owing, including, without limitation, any reasonable attorneys’ fees incurred by the Governmental Lender, the Fiscal Agent or the Funding Lender in connection with the exercise by the Governmental Lender, the Fiscal Agent or the Funding Lender of its rights under this Section 2.9. Section 2.10 Borrower Loan Disbursements. Proceeds of the Borrower Loan shall be disbursed by the Fiscal Agent upon approval by the Funding Lender, as agent for the Governmental Lender, pursuant to the Construction Funding Agreement, to or for the benefit of the Borrower as provided in Section 7.7 of the Funding Loan Agreement. ARTICLE III CONVERSION Section 3.1 Conversion Date and Extension of Outside Conversion Date. Borrower shall satisfy each of the Conditions to Conversion and cause the Conversion Date to occur on or before the Outside Conversion Date, as further provided in the Construction Funding Agreement. The failure to satisfy each of the Conditions to Conversion on or before the Outside Conversion Date shall constitute an Event of Default under the Borrower Loan Documents. Section 3.2 Notice From Funding Lender; Funding Lender’s Calculation Final. Following satisfaction of all of the Conditions to Conversion, Funding Lender shall deliver Written Notice to Borrower (with a copy to the Governmental Lender and the Fiscal Agent) of: (i) the Conversion Date, (ii) the amount of the Permanent Period Amount, (iii) any required prepayment of Page 382 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 23 4933-7130-2287v5/024036-0105 the Borrower Note (as described below in Section 3.3) and (iv) any amendments to the amortization schedule, as applicable. Funding Lender’s calculation of the Permanent Period Amount and any amendments to the amortization of the Borrower Loan shall be, in the absence of manifest error, conclusive and binding on all parties. Section 3.3 Mandatory Prepayment of the Borrower Loan. As further provided in the Construction Funding Agreement, if and to the extent the Permanent Period Amount is less than the Interim Phase Amount, Funding Lender may in its sole discretion require Borrower to make a partial prepayment of the Borrower Loan in an amount equal to the difference between the Interim Phase Amount and the Permanent Period Amount, provided, however, that if the Permanent Period Amount is less than the Minimum Permanent Period Amount (as defined in the Construction Funding Agreement), then Funding Lender may in its sole discretion require Borrower to prepay the Borrower Loan in full. Any prepayment in full or in part of the Borrower Loan required pursuant to the preceding paragraph shall be subject to a prepayment premium under certain circumstan ces as more particularly set forth in the Borrower Note. Section 3.4 Release of Remaining Loan Proceeds. If and to the extent that the Permanent Period Amount is greater than the principal amount of the Borrower Loan which has previously been disbursed to Borrower, Funding Lender shall deliver Written Notice thereof to Borrower (with a copy to the Governmental Lender) on or before the Conversion Date. Within ten (10) business days after delivery of such notice, but in no event later than the Outside Conversion Date, Funding Lender shall advance to the Fiscal Agent, for deposit by the Fiscal Agent to the Note Proceeds Account of the Project Fund under the Funding Loan Agreement, Funding Loan proceeds so that the aggregate principal amount of the Funding Loan and of the Borrower Loan disbursed equals the Permanent Period Amount. Any Borrower Loan proceeds previously disbursed to the Borrower in excess of the Permanent Period Amount shall be paid by Borrower to Fiscal Agent. Section 3.5 No Amendment. Nothing contained in this Article III shall be construed to amend, modify, alter, change or supersede the terms and provisions of the Borrower Note, Security Instrument, the Construction Funding Agreement or any other Borrower Loan Document and, if there shall exist a conflict between the terms and provisions of this Article III and those of the Borrower Note, Security Instrument, the Construction Funding Agreement or other Borrower Loan Documents, then the terms and provisions of the Borrower Note, Security Instrument, the Construction Funding Agreement and other Borrower Loan Documents shall control; provided, however, that in the event of a conflict between the terms and provisions of this Article III and those of the Borrower’s loan application with the Funding Lender, the terms and provisions of this Article III shall control. Section 3.6 Determinations by Funding Lender. In any instance where the consent or approval of Funding Lender may be given or is required, or where any determination, judgment or decision is to be rendered by Funding Lender under this Article III, including in connection with the Construction Funding Agreement, the granting, withholding or denial of such consent or approval and the rendering of such determination, judgment or decision shall be made or exercised by the Fundi ng Lender (or its designated representative), at its sole and exclusive option and in its sole and absolute discretion. Page 383 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 24 4933-7130-2287v5/024036-0105 ARTICLE IV REPRESENTATIONS AND WARRANTIES Section 4.1 Borrower Representations. To induce the Governmental Lender to execute this Borrower Loan Agreement and to induce the Funding Lender to make Disbursements, the Borrower represents and warrants for the benefit of the Governmental Lender, the Funding Lender, the Fiscal Agent and the Servicer, that the representations and warranties set forth in this Section 4.1 are complete and accurate as of the Closing Date and, subject to Section 4.2, shall survive the making of the Borrower Loan and will be complete and accurate, and deemed remade, except as otherwise noted through notice to Funding Lender and approved by Funding Lender, as of the date of each Disbursement, as of the original Outside Conversion Date, as of the date of any extension thereof and as of the Conversion Date in accordance with the terms and conditions of the Borrower Note: Section 4.1.1 Organization; Special Purpose. The Borrower is a limited partnership in good standing under the laws of the State (and under the laws of the state in which the Borrower was formed if the Borrower was not formed under the laws of the State), has full legal right, power and authority to enter into the Borrower Loan Documents to which it is a party, and to carry out and consummate all transactions contemplated by the Borrower Loan Documents to which it is a party, and by proper limited partnership action has duly authorized the ex ecution, delivery and performance of the Borrower Loan Documents to which it is a party. The Person(s) of the Borrower executing the Borrower Loan Documents and the Funding Loan Documents to which the Borrower is a party are fully authorized to execute the same. The Borrower Loan Documents and the Funding Loan Documents to which the Borrower is a party have been duly authorized, executed and delivered by the Borrower. The sole business of the Borrower is the ownership, management and operation of the Project. Section 4.1.2 Proceedings; Enforceability. Assuming due execution and delivery by the other parties thereto, the Borrower Loan Documents and the Funding Loan Documents to which the Borrower is a party will constitute the legal, valid and binding agreements of the Borrower enforceable against the Borrower in accordance with their terms; except in each case as enforcement may be limited by bankruptcy, insolvency or other laws affecting the enforcement of creditors’ rights generally, by the application of equitable p rinciples regardless of whether enforcement is sought in a proceeding at law or in equity and by public policy. Section 4.1.3 No Conflicts. The execution and delivery of the Borrower Loan Documents and the Funding Loan Documents to which the Borrower is a party, the co nsummation of the transactions herein and therein contemplated and the fulfillment of or compliance with the terms and conditions hereof and thereof, will not conflict with or constitute a violation or breach of or default (with due notice or the passage of time or both) under the Partnership Agreement of the Borrower or to the best knowledge of the Borrower and with respect to the Borrower, any applicable law or administrative rule or regulation, or any applicable court or administrative decree or order, o r any mortgage, deed of trust, loan agreement, lease, contract or other agreement or instrument to which the Borrower is a party or by which it or its properties are otherwise subject or bound, or result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever (other than the lien of the Security Instrument) upon any of the property or assets of the Borrower, which conflict, violation, breach, default, lien, charge or encumbrance might have consequences that would materially and adversely affect the consummation of the transactions contemplated by the Borrower Loan Page 384 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 25 4933-7130-2287v5/024036-0105 Documents and the Funding Loan Documents, or the financial condition, assets, properties or operations of the Borrower. Section 4.1.4 Litigation; Adverse Facts. There is no Legal Action, nor is there a basis known to Borrower for any Legal Action, before or by any court or federal, state, municipal or other governmental authority, pending, or to the knowledge of the Borrower, after reasonable investigation, threatened, against or affecting the Borrower, the General Partner or the Guarantor, or their respective assets, properties or operations which, if determined adversely to the Borrower or its interests, would have a material adverse effect upon the consummation of the transact ions contemplated by, or the validity of, the Borrower Loan Documents or the Funding Loan Documents, upon the ability of each of Borrower, General Partner and Guarantor to perform their respective obligations under the Borrower Loan Documents, the Funding Loan Documents and the Related Documents to which it is a party, or upon the financial condition, assets (including the Project), properties or operations of the Borrower, the General Partner or the Guarantor. None of the Borrower, General Partner or Guarantor is in default (and no event has occurred and is continuing which with the giving of notice or the passage of time or both could constitute a default) with respect to any order or decree of any court or any order, regulation or demand of any federal, state, municipal or other governmental authority, which default might have consequences that would materially and adversely affect the consummation of the transactions contemplated by the Borrower Loan Documents and the Funding Loan Documents, the ability of each of Borrower, General Partner and Guarantor to perform their respective obligations under the Borrower Loan Documents, the Funding Loan Documents and the Related Documents to which it is a party, or the financial condition, assets, properties or ope rations of the Borrower, General Partner or Guarantor. None of Borrower, General Partner or Guarantor are (a) in violation of any applicable law, which violation materially and adversely affects or may materially and adversely affect the business, operations, assets (including the Project), financial condition of Borrower, General Partner or Guarantor, as applicable; (b) subject to, or in default with respect to, any other Legal Requirement that would have a material adverse effect on the business, operations, assets (including the Project), financial condition of Borrower, General Partner or Guarantor, as applicable; or (c) in default with respect to any agreement to which Borrower, General Partner or Guarantor, as applicable, are a party or by which they are bound, which default would have a material adverse effect on the business, operations, assets (including the Project), financial condition of Borrower, General Partner or Guarantor, as applicable; and (d) there is no Legal Action pending or, to the knowledge of Borrower, threatened against or affecting Borrower, General Partner or Guarantor questioning the validity or the enforceability of this Borrower Loan Agreement or any of the other Borrower Loan Documents or the Funding Loan Documents or of any of the Related Documents. All tax returns (federal, state and local) required to be filed by or on behalf of the Borrower have been filed, and all taxes shown thereon to be due, including interest and penalties, except such, if any, as are being actively contested by the Borrower in good faith, have been paid or adequate reserves have been made for the payment thereof which reserves, if any, are reflected in the audited financial statements described therein. The Borrower enjoys the peaceful and undisturbed possession of all of the premises upon which it is operating its facilities. Section 4.1.5 Agreements; Consents; Approvals. Except as contemplated by the Borrower Loan Documents and the Funding Loan Documents, the Borrower is not a party to any agreement or instrument or subject to any restriction that would materially adversely affect the Borrower, the Project, or the Borrower’s business, properties, operations or financial condition, except the Permitted Encumbrances. The Borrower is not in default in any material r espect in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in Page 385 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 26 4933-7130-2287v5/024036-0105 any Permitted Encumbrance or any other agreement or instrument to which it is a party or by which it or the Project is bound. No consent or approval of any trustee or holder of any indebtedness of the Borrower, and to the best knowledge of the Borrower and only with respect to the Borrower, no consent, permission, authorization, order or license of, or filing or registration with, any governm ental authority (except no representation is made with respect to any state securities or “blue sky” laws) is necessary in connection with the execution and delivery of the Borrower Loan Documents or the Funding Loan Documents, or the consummation of any transaction herein or therein contemplated, or the fulfillment of or compliance with the terms and conditions hereof or thereof, except as have been obtained or made and as are in full force and effect. Section 4.1.6 Title. The Borrower shall have marketable title to the Project free and clear of all Liens except the Permitted Encumbrances. The Security Instrument, when properly recorded in the appropriate records, together with any UCC financing statements required to be filed in connection therewith, will create (i) a valid, perfected first priority lien on the fee interest in the Project and (ii) perfected security interests in and to, and perfected collateral assignments of, all personalty included in the Project (including the Leases), all in accordance with the ter ms thereof, in each case subject only to any applicable Permitted Encumbrances. To the Borrower’s knowledge, there are no delinquent real property taxes or assessments, including water and sewer charges, with respect to the Project, nor are there any claims for payment for work, labor or materials affecting the Project which are or may become a Lien prior to, or of equal priority with, the Liens created by the Borrower Loan Documents and the Funding Loan Documents. Section 4.1.7 Survey. To the best knowledge of the Borrower, the survey for the Project delivered to the Governmental Lender and the Funding Lender does not fail to reflect any material matter affecting the Project or the title thereto. Section 4.1.8 No Bankruptcy Filing. The Borrower is not contemplating either the filing of a petition by it under any state or federal bankruptcy or insolvency law or the liquidation of all or a major portion of its property (a “Bankruptcy Proceeding”), and the Borrower has no knowledge of any Person contemplating the filing of any such petition against it. As of the Closing Date, the Borrower has the ability to pay its debts as they become due. Section 4.1.9 Full and Accurate Disclosure. No statement of fact made by the Borrower in any Borrower Loan Document or any Funding Loan Document contains any untrue statement of a material fact or omits to state any material fact necessary to make statements contained therein in light of the circumstances in which they were made, not misleading. There is no material fact or circumstance presently known to the Borrower that has not been disclosed to the Governmental Lender and the Funding Lender which materially and adversely affects the Project or the business, operations or financial condition of the Borrower or the Borrower’s ability to meet its obligations under this Borrower Loan Agreement and the other Borrower Loan Documents and Funding Loan Documents to which it is a party in a timely manner. Section 4.1.10 No Plan Assets. The Borrower is not an “employee benefit plan,” as defined in Section 3(3) of ERISA, subject to Title I of ERISA, and none of the assets of the Borrower constitutes or will constitute “plan assets” of one or more such plans within the meaning of 29 C.F.R. Section 2510.3 101. Page 386 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 27 4933-7130-2287v5/024036-0105 Section 4.1.11 Compliance. The Borrower, the Project and the use thereof will comply, to the extent required, in all material respects with all applicable Legal Requirements. The Borrower is not in default or violation of any order, writ, injunction, decree or demand of any Governmental Authority, the violation of which would materially adver sely affect the financial condition of the Borrower. There has not been committed by the Borrower or any Borrower Affiliate involved with the operation or use of the Project any act or omission affording any Governmental Authority the right of forfeiture as against the Project or any part thereof or any moneys paid in performance of the Borrower’s obligations under any Borrower Loan Document or any Funding Loan Documents. Section 4.1.12 Contracts. All service, maintenance or repair contracts affecting the Project have been entered into at arm’s length (except for such contracts between the Borrower and its affiliates or the affiliates of the Borrower Controlling Entity of the Borrower) in the ordinary course of the Borrower’s business and provide for the payment of fees in amounts and upon terms comparable to existing market rates. Section 4.1.13 Financial Information. All financial data, including any statements of cash flow and income and operating expense, that have been delivered to the Governmental Lender or the Funding Lender in respect of the Project by or on behalf of the Borrower, to the best knowledge of the Borrower, (i) are accurate and complete in all material respects, (ii) accurately represent the financial condition of the Project as of the date of such reports, and (iii ) to the extent prepared by an independent certified public accounting firm, have been prepared in accordance with GAAP consistently applied throughout the periods covered, except as disclosed therein. Other than pursuant to or permitted by the Borrower Loan Documents or the Funding Loan Documents or the Borrower organizational documents, the Borrower has no contingent liabilities, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments. Since the date of such financial statements, there has been no materially adverse change in the financial condition, operations or business of the Borrower from that set forth in said financial statements. Section 4.1.14 Condemnation. No Condemnation or other proceeding has been commenced or, to the Borrower’s knowledge, is contemplated, threatened or pending with respect to all or part of the Project or for the relocation of roadways providing access to the Project. Section 4.1.15 Federal Reserve Regulations. No part of the proceeds of the Borrower Loan will be used for the purpose of purchasing or acquiring any “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or for any other purpose that would be inconsistent with such Regulation U or any o ther regulation of such Board of Governors, or for any purpose prohibited by Legal Requirements or any Borrower Loan Document or Funding Loan Document. Section 4.1.16 Utilities and Public Access. To the best of the Borrower’s knowledge, the Project is or will be served by water, sewer, sanitary sewer and storm drain facilities adequate to service it for its intended uses. All public utilities necessary or convenient to the full use and enjoyment of the Project are or will be located in the public right -of-way abutting the Project, and all such utilities are or will be connected so as to serve the Project without passing over other property absent a valid easement. All roads necessary for the use of the Project for its current purpose have been or will be completed and dedicated to public use and accepted by all Governmental Authorities. Except for Permitted Encumbrances, the Project does not share ingress and egress through an easement or private road or share on-site or off-site recreational facilities and amenities th at are not located on the Project Page 387 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 28 4933-7130-2287v5/024036-0105 and under the exclusive control of the Borrower, or where there is shared ingress and egress or amenities, there exists an easement or joint use and maintenance agreement under which (i) access to and use and enjoyment of the easement or private road and/or recreational facilities and amenities is perpetual, (ii) the number of parties sharing such easement and/or recreational facilities and amenities must be specified, (iii) the Borrower’s responsibilities and share of expenses are specified, and (iv) the failure to pay any maintenance fee with respect to an easement will not result in a loss of usage of the easement. Section 4.1.17 Not a Foreign Person. The Borrower is not a “foreign person” within the meaning of §1445(f)(3) of the Code. Section 4.1.18 Separate Lots. Each parcel comprising the Land is a separate tax lot and is not a portion of any other tax lot that is not a part of the Land. Section 4.1.19 Assessments. There are no pending or, to the Borrower’s best knowledge, proposed special or other assessments for public improvements or otherwise affecting the Project, or any contemplated improvements to the Project that may result in such special or other assessments. Section 4.1.20 Enforceability. The Borrower Loan Documents and the Funding Loan Documents are not subject to, and the Borrower has not asserted, any right of rescission, set -off, counterclaim or defense, including the defense of usury. Section 4.1.21 Insurance. The Borrower has obtained the insurance required by this Borrower Loan Agreement, if applicable, and the Security In strument and has delivered to the Servicer copies of insurance policies or certificates of insurance reflecting the insurance coverages, amounts and other requirements set forth in this Borrower Loan Agreement, if applicable, and the Security Instrument. Section 4.1.22 Use of Property; Licenses. The Project will be used exclusively as a multifamily rental housing project and other appurtenant and related uses, which use is consistent with the zoning classification for the Project. All certifications, permits, licenses a nd approvals, including certificates of completion and occupancy permits required for the legal use or legal, nonconforming use, as applicable, occupancy and operation of the Project (collectively, the “Licenses”) required at this time for the construction or rehabilitation, as appropriate, and equipping of the Project have been obtained. To the Borrower’s knowledge, all Licenses obtained by the Borrower have been validly issued and are in full force and effect. The Borrower has no reason to believe that any of the Licenses required for the future use and occupancy of the Project and not heretofore obtained by the Borrower will not be obtained by the Borrower in the ordinary course following the Completion Date. No Licenses will terminate, or become void or voidable or terminable, upon any sale, transfer or other disposition of the Project, including any transfer pursuant to foreclosure sale under the Security Instrument or deed in lieu of foreclosure thereunder. The Project does not violate any density o r building setback requirements of the applicable zoning law except to the extent, if any, shown on the survey. No proceedings are, to the best of the Borrower’s knowledge, pending or threatened that would result in a change of the zoning of the Project. Section 4.1.23 Flood Zone. As of the Closing Date, no structure within the Mortgaged Property lies or is located in an identifiable or designated Special Flood Hazard Area. Subsequent to the Closing Date, if the Mortgaged Property is determined to be in a Special Flood Page 388 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 29 4933-7130-2287v5/024036-0105 Hazard Area, Borrower will obtain appropriate flood insurance as required under the National Flood Insurance Act of 1968, Flood Disaster Protection Act of 1973, or the National Flood Insurance Reform Act of 1994 as amended or as required by the Servicer pursuant to its underwriting guidelines. Section 4.1.24 Physical Condition. The Project, including all Improvements, parking facilities, systems, fixtures, Equipment and landscaping, are or, after completion of the construction, rehabilitation and/or repairs, as appropriate, will be in good and habitable condition in all material respects and in good order and repair in all material respects (reasonable wear and tear excepted). The Borrower has not received notice from any insurance company or bonding company of any defec t or inadequacy in the Project, or any part thereof, which would adversely affect its insurability or cause the imposition of extraordinary premiums or charges thereon or any termination of any policy of insurance or bond. The physical configuration of the Project is not in material violation of the ADA, if required under applicable law. Section 4.1.25 Encroachments. All of the Improvements included in determining the appraised value of the Project will lie wholly within the boundaries and building restriction lines of the Project, and no improvement on an adjoining property encroaches upon the Project, and no easement or other known encumbrance upon the Project encroaches upon any of the Improvements, so as to affect the value or marketability of the Project, except those insured against by the Title Insurance Policy or disclosed in the survey of the Project as approved by the Servicer. Section 4.1.26 State Law Requirements. The Borrower hereby represents, covenants and agrees to comply with the provisions of all applicable state laws relating to the Borrower Loan, the Funding Loan and the Project. Section 4.1.27 Filing and Recording Taxes. All transfer taxes, deed stamps, intangible taxes or other amounts in the nature of transfer taxes required to be paid by any Person under applicable Legal Requirements in connection with the transfer of the Project to the Borrower have been paid. All mortgage, mortgage recording, stamp, intangible or other similar taxes required to be paid by any Person under applicable Legal Requirements in connection with the execution, delivery, recordation, filing, registration, perfection or enforcement of any of the Borrower Loan Documents and the Funding Loan Documents have been or will be paid. Section 4.1.28 Investment Company Act. The Borrower is not (i) an “investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended; or (ii) a “holding company” or a “subsidiary company” of a “holding company” or an “affiliate” of either a “holding company” or a “subsid iary company” within the meaning of the Public Utility Holding Company Act of 1935, as amended. Section 4.1.29 Fraudulent Transfer. The Borrower has not accepted the Borrower Loan or entered into any Borrower Loan Document or Funding Loan Document with the actual intent to hinder, delay or defraud any creditor, and the Borrower has received reasonably equivalent value in exchange for its obligations under the Borrower Loan Documents and the Funding Loan Documents. Giving effect to the transactions contemplated by the Borrower Loan Documents and the Funding Loan Documents, the fair saleable value of the Borrower’s assets exceeds and will, immediately following the execution and delivery of the Borrower Loan Documents and the Funding Loan Documents, exceed the Borrower’s total liabilities, including subordinated, unliquidated, disputed or contingent liabilities. The fair saleable value of the Borrower’s assets is and will, immediately following the execution and delivery of the Borrower Loan Documents and the Funding Loan Documents, be greater than the Page 389 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 30 4933-7130-2287v5/024036-0105 Borrower’s probable liabilities, including the maximum amount of its contingent liabilities or its debts as such debts become absolute and matured. The Borrower’s assets do not and, immediately following the execution and delivery of the Borrower Loan Documents and the Funding Loan Documents will not, constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted. The Borrower does not intend to, and does not believe that it will, incur debts and liabilities (including contingent liabilities and other commitments) beyond its ability to pay such debts as they mature (taking into account the timing and amounts to be payable on or in respect of obligations of the Borrower). Section 4.1.30 Ownership of the Borrower. Except as set forth in the Partnership Agreement of the Borrower and the exhibits thereto, the Borrower has no obligation to any Person to purchase, repurchase or issue any ownership interest in the Borrower. Section 4.1.31 Environmental Matters. To the best of Borrower’s knowledge, the Project is not in violation of any Legal Requirement pertaining to or imposing liability or standards of conduct concerning environmental regulation, contamination or cleanup, and will comply with covenants and requirements relating to environmental hazards as set forth in the Security Instrument. The Borrower will execute and deliver the Agreement of Environmental Indemnification on the Closing Date. Section 4.1.32 Name; Principal Place of Business. Unless prior Written Notice is given to the Funding Lender, the Borrower does not use and will not use any trade name, and has not done and will not do business under any name other than its actual name set forth herein. The principal place of business of the Borrower is its primary address for notices as set forth in Section 10.1 hereof, and the Borrower has no other place of business, other than the Project and such principal place of business. Section 4.1.33 Subordinated Debt. There is no secured or unsecured indebtedness with respect to the Project or any residual interest therein, other than Permitted Encumbrances and the permitted secured indebtedness described in Section 6.7 hereof, except an unsecured deferred developer fee not to exceed the amount permitted by Funding Lender as determined on the Closing Date, and unsecured, subordinate partner loans to Borrower permitted or required under the terms of the Partnership Agreement. Section 4.1.34 Filing of Taxes. The Borrower has filed (or has obtained effective extensions for filing) all federal, state and local tax returns required to be filed and has paid or made adequate provision for the payment of all federal, state and local taxes, charges and assessments, if any, payable by the Borrower. Section 4.1.35 General Tax. All representations, warranties and certifications of th e Borrower set forth in the Regulatory Agreement and the Tax Certificate are incorporated by reference herein and the Borrower will comply with such as if set forth herein. Section 4.1.36 Approval of the Borrower Loan Documents and Funding Loan Documents. By its execution and delivery of this Borrower Loan Agreement, the Borrower approves the form and substance of the Borrower Loan Documents and the Funding Loan Documents, and agrees to carry out the responsibilities and duties specified in the Borrower Loan Documents an d the Funding Loan Documents to be carried out by the Borrower. The Borrower acknowledges that (a) it understands the nature and structure of the transactions relating to the financing of the Project, (b) it is Page 390 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 31 4933-7130-2287v5/024036-0105 familiar with the provisions of all of the Borrower Loan Documents and the Funding Loan Documents and other documents and instruments relating to the financing, (c) it understands the risks inherent in such transactions, including without limitation the risk of loss of the Project, and (d) it has not relied on the Governmental Lender, the Funding Lender, the Fiscal Agent or the Servicer for any guidance or expertise in analyzing the financial or other consequences of the transactions contemplated by the Borrower Loan Documents and the Funding Loan Documents or otherwise relied on the Governmental Lender, the Funding Lender, the Fiscal Agent or the Servicer in any manner. Section 4.1.37 Funding Loan Agreement. The Borrower has read and accepts and agrees that it is bound by the Funding Loan Agreement and the Funding Loan Documents. Section 4.1.38 Americans with Disabilities Act. The Project, as designed, will conform in all material respects with all applicable zoning, planning, building and environmental laws, ordinances and regulations of governmental authorities having jurisdiction over the Project, including, but not limited to, the Americans with Disabilities Act of 1990 (“ADA”), to the extent required (as evidenced by an architect’s certificate to such effect). Section 4.1.39 Requirements of Act, Code and Regulations. The Project satisfies all requirements of the Act, the Code and the Regulations applicable to the Project. Section 4.1.40 Regulatory Agreement. The Project is, as of the date of origination of the Funding Loan, in compliance with all requirements of the Regulatory Agreement to the extent such requirements are applicable; and the Borrower intends to cause the residential units in the Project to be rented or available for rental on a basis which satisfies the requirements of the Regulatory Agreement, including all applicable requirements of the Act and the Code and the Regulations, and pursuant to leases which comply with all applicable laws. Section 4.1.41 Intention to Hold Project. The Borrower intends to hold the Project for its own account and has no current plans, and has not entered into any agreement, to sell the Project or any part of it (except for rights granted in the Partnership Agreement); and the Borrower intends to occupy the Project or cause the Project to be occupied and to operate it or cause it to be operated at all times during the term of this Borrower Loan Agreement in compliance with the terms of this Borrower Loan Agreement and the Regulatory Agreement and does not know of any reason why the Project will not be so used by it in the absence of circumstances not now anticipated by it or totally beyond its control. Section 4.1.42 Concerning General Partner. (a) The managing general partner of Borrower is SBCS Corporation, a California nonprofit public benefit corporation, and the administrative general partner of Borrower is MU2 Affordable LLC, a California limited liability company, and each of the Managing General Partner and Administrative General Partner is duly organized and validly existing under the laws of the State of California. The General Partner has all requisite power and authority, rights and franchises to enter into and perform its obligations under the Borrower Loan Documents and the Funding Loan Documents to be executed by it for its own account and on behalf of Borrower, as general partner of Borrower, under this Borrower Loan Agreement and the other Borrower Loan Documents and the Funding Loan Documents. Page 391 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 32 4933-7130-2287v5/024036-0105 (b) The General Partner has made all filings (including, without limitation, all required filings related to the use of fictitious business names) and is in good standing in the State and in each other jurisdiction in which the character of the property it owns or the nature of the business it transacts makes such filings necessary or where the failure to make such filings could have a material adverse effect on the business, operations, assets, or financial condition of General Partner. (c) The General Partner is duly authorized to do business in the State. (d) The execution, delivery and performance by Borrower of the Borrower Loan Documents and the Funding Loan Documents have been duly authorized by all necessary action of General Partner on behalf of Borrower, and by all necessary action on behalf of General Partner. (e) The execution, delivery and performance by General Partner, on behalf of Borrower, of the Borrower Loan Documents and the Funding Loan Documents will not violate (i) General Partner’s organizational documents; (ii) any other Legal Requirement affecting General Partner or any of its properties; or (iii) any agreement to which General Partner is bound or to which it is a party; and will not result in or require the creation (except as provided in or contemplated by this Borrower Loan Agreement) of any Lien upon any of such properties, any of the Collateral or any of the property or funds pledged or delivered to Funding Lender pursuant to the Security Documents. Section 4.1.43 Government and Private Approvals. All governmental or regulatory orders, consents, permits, authorizations and approvals required for the construction, rehabilitation, use, occupancy and operation of the Improvements, that may be gran ted or denied in the discretion of any Governmental Authority, have been obtained and are in full force and effect (or, in the case of any of the foregoing that Borrower is not required to have as of the Closing Date, will be obtained), and will be maintained in full force and effect at all times during the construction or rehabilitation of the Improvements. All such orders, consents, permits, authorizations and approvals that may not be denied in the discretion of any Governmental Authority shall be obtained prior to the commencement of any work for which such orders, consents, permits, authorizations or approvals are required, and, once obtained, such orders, consents, permits, authorizations and approvals will be maintained in full force and effect at all times during the construction or rehabilitation of the Improvements. Except as set forth in the preceding two sentences, no additional governmental or regulatory actions, filings or registrations with respect to the Improvements, and no approvals, autho rizations or consents of any trustee or holder of any indebtedness or obligation of Borrower, are required for the due execution, delivery and performance by Borrower or General Partner of any of the Borrower Loan Documents or the Funding Loan Documents or the Related Documents executed by Borrower or General Partner, as applicable. All required zoning approvals have been obtained, and the zoning of the Land for the Project is not conditional upon the happening of any further event. Section 4.1.44 Concerning Guarantor. The Borrower Loan Documents and the Funding Loan Documents to which the Guarantor is a party or a signatory executed simultaneously with this Borrower Loan Agreement have been duly executed and delivered by Guarantor and are legally valid and binding obligations of Guarantor, enforceable against Guarantor in accordance with their terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general principles of equity. Section 4.1.45 No Material Defaults. Except as previously disclosed to Funding Lender and the Governmental Lender in writing, there exists no material violation of or material default by Borrower under, and, to the best knowledge of Borrower, no event has occurred which, upon the Page 392 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 33 4933-7130-2287v5/024036-0105 giving of notice or the passage of time, or both, would constitute a material default with respect to: (i) the terms of any instrument evidencing, securing or guaranteeing any indebtedness secured by the Project or any portion or interest thereof or therein; (ii) any lease or other agreement affecting the Project or to which Borrower is a party; (iii) any license, permit, statute, ordinance, law, judgment, order, writ, injunction, decree, rule or regulation of any Governmental Authority, or any determination or award of any arbitrator to which Borrower or the Project may be bound; or (iv) any mortgage, instrument, agreement or document by which Borrower or any of its respective properties is bound; in the case of any of the foregoing: (1) which involves any Borrower Loan Document or Funding Loan Document; (2) which involves the Project and is not adequately covered by insurance; (3) that might materially and adversely affect the ability of Borrower, General Partner or Guarantor or to perform any of its respective obligations under any of the Borrower Loan Documents or the Funding Loan Documents or any other material instrument, agreement or document to which it is a party; or (4) which might adversely affect the priority of the Liens c reated by this Borrower Loan Agreement or any of the Borrower Loan Documents or the Funding Loan Documents. Section 4.1.46 Payment of Taxes. Except as previously disclosed to Funding Lender in writing: (i) all tax returns and reports of Borrower, General Partner and Guarantor required to be filed have been timely filed, and all taxes, assessments, fees and other governmental charges upon Borrower, General Partner and Guarantor, and upon their respective properties, assets, income and franchises, which are due and payable have been paid when due and payable; and (ii) Borrower knows of no proposed tax assessment against it or against General Partner or Guarantor that would be material to the condition (financial or otherwise) of Borrower, General Partner or Guarantor, and neither Borrower nor General Partner have contracted with any Governmental Authority in connection with such taxes. Section 4.1.47 Rights to Project Agreements and Licenses. Borrower is the legal and beneficial owner of all rights in and to the Plans and Specifications and all existing Project Agreements and Licenses, and will be the legal and beneficial owner of all rights in and to all future Project Agreements and Licenses. Borrower’s interest in the Plans and Specifications and all Project Agreements and Licenses is not subject to any present claim (other than under the Borrower Loan Documents and the Funding Loan Documents or as otherwise approved by Funding Lender in its sole discretion), set-off or deduction other than in the ordinary course of business. Section 4.1.48 Patriot Act Compliance. Borrower is not now, nor has ever been (i) listed on any Government Lists (as defined below), (ii) a person who has been determined by a Governmental Authority to be subject to the prohibitions contained in Presidential Executive Order No. 13224 (September 23, 2001) or any other similar prohibitions contained in the rules and regulations of OFAC or in any enabling legislation or other Presidential Executive Orders in respect thereof, (iii) indicted for or convicted of any felony involving a crime or crimes of moral turpitude or for any Patriot Act Offense, or (iv) under investigation by any Governmental Authority for alleged criminal activity. For purposes hereof, the term “Patriot Act Offense” shall mean any violation of the criminal laws of the United States of America or of any of the several states, or that would be a criminal violation if committed within the jurisdiction of the United States of America or any of the several states, relating to terrorism or the laundering of monetary inst ruments, including any offense under (A) the criminal laws against terrorism; (B) the criminal laws against money laundering, (C) Bank Representative Secrecy Act, as amended, (D) the Money Laundering Control Act of 1986, as amended, or (E) the Patriot Act. “Patriot Act Offense” also includes the crimes of conspiracy to commit, or aiding and abetting another to commit, a Patriot Act Offense. For purposes hereof, the term “Government Lists” shall mean (1) the Specially Designated Nationals and Blocked Persons Lists maintained by the Page 393 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 34 4933-7130-2287v5/024036-0105 Office of Foreign Assets Control (“OFAC”), (2) any other list of terrorists, terrorist organizations or narcotics traffickers maintained pursuant to any of the Rules and Regulations of OFAC that Funding Lender notified Borrower in writing is now included in “Government Lists”, or (3) any similar lists maintained by the United States Department of State, the United States Department of Commerce or any other Governmental Authority or pursuant to any Executive Order of the President o f the United States of America that Funding Lender notified Borrower in writing is now included in “Government Lists”. Section 4.1.49 Rent Schedule. Borrower has prepared a prospective Unit absorption and rent collection schedule with respect to the Project substantially in the form attached as an exhibit to the Construction Funding Agreement, which schedule takes into account, among other relevant factors (i) a schedule of minimum monthly rentals for the Units, and (ii) any and all concessions including free rent periods, and on the basis of such schedule, Borrower believes it will collect rents with respect to the Project in amounts greater than or equal to debt service on the Borrower Loan. Section 4.1.50 Other Documents. Each of the representations and warranties of Borrower or General Partner contained in any of the other Borrower Loan Documents or the Funding Loan Documents or Related Documents is true and correct in all material respects (or, in the case of representations or warranties contained in any of the other Borrower Loan Documents or Funding Loan Documents or Related Documents that speak as of a particular date, were true and correct in all material respects as of such date). All of such representations and warranties are incorporated herein for the benefit of Funding Lender. Section 4.1.51 Subordinate Loan Documents. The Subordinate Loan Documents are in full force and effect and the Borrower has paid all commitment fees and other amounts due and payable to the Subordinate Lender(s) thereunder. There exists no material violation of o r material default by the Borrower under, and no event has occurred which, upon the giving of notice or the passage of time, or both, would constitute a material default under the Subordinate Loan Documents. Section 4.1.52 [Reserved]. Section 4.1.53 Survival of Representations and Covenants. All of the representations and warranties in Section 4.1 hereof and elsewhere in the Borrower Loan Documents (i) shall survive for so long as any portion of the Borrower Payment Obligations remains due and owing and (ii) shall be deemed to have been relied upon by the Governmental Lender and the Servicer notwithstanding any investigation heretofore or hereafter made by the Governmental Lender or the Servicer or on its or their behalf, provided, however, that the representations, warranties and covenants set forth in Section 4.1.31 hereof shall survive in perpetuity and shall not be subject to the exculpation provisions of Section 11.1 hereof. ARTICLE V AFFIRMATIVE COVENANTS During the term of this Borrower Loan Agreement, the Borrower hereby covenants and agrees with the Governmental Lender, the Funding Lender, the Fiscal Agent and the Servicer that: Section 5.1 Existence. The Borrower shall (i) do or cause to be done all things necessary to preserve, renew and keep in full force and effect its existence and its material rights, and franchises, Page 394 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 35 4933-7130-2287v5/024036-0105 (ii) continue to engage in the business presently conducted by it, (iii) obtain and maintain all material Licenses, and (iv) qualify to do business and remain in good standing under the laws of the State. Section 5.2 Taxes and Other Charges. The Borrower shall pay all Taxes and Other Charges as the same become due and payable and prior to their becoming delinquent in accordance with the Security Instrument, except to the extent that the amount, validity or application thereof is being contested in good faith as permitted by the Security Instrument. The Borrower covenants to pay all taxes and Other Charges of any type or character charged to the Funding Lender affecting the amount available to the Funding Lender from payments to be received hereunder or in any way arising due to the transactions contemplated hereby (including taxes and Other Charges assessed or levied by any public agency or governmental authority of whatsoever character having power to levy taxes or assessments) but excluding franchise taxes based upon the capital and/or income of the Funding Lender and taxes based upon or measured by the net income of the Funding Lender; provided, however, that the Borrower shall have the right to protest any such taxes or Other Charges and to require the Funding Lender, at the Borrower’s expense, to protest and contest any such taxes or Other Charges levied upon them and that the Borrower shall have the right to withhold payment of any such taxes or Other Charges pending disposition of any such protest or contest unless such withholding, protest or contest would adversely affect the rights or interests of the Funding Lender. This obligation shall remain valid and in effect notwithstanding repayment of the Borrower Loan hereunder or termination of this Borrower Loan Agreement. Section 5.3 Repairs; Maintenance and Compliance; Physical Condition. The Borrower shall cause the Project to be maintained in a good, habitable and safe (so as to not threaten the health or safety of the Project’s tenants or their invited guests) condition and repair (reasonable wear and tear excepted) as set forth in the Security Instrument and shall not remove, demolish or materially alter the Improvements or Equipment (except for removal of aging or obsolete equipment or furnishings in the normal course of business), except as provided in the Security Instrument. Section 5.4 Litigation. The Borrower shall give prompt Written Notice to the Governmental Lender, the Funding Lender and the Servicer of any litigation, governmental proceedings or claims or investigations regarding an alleged actual violation of a Legal Requirement pending or, to the Borrower’s knowledge, threatened against the Borrower which might materially adversely affect the Borrower’s condition (financial or otherwise) or business or the Project. Section 5.5 Performance of Other Agreements. The Borrower shall observe and perform in all material respects each and every term to be observed or performed by it pursuant to the terms of any agreement or instrument affecting or pertaining to the Pr oject. Section 5.6 Notices. The Borrower shall promptly advise the Governmental Lender, the Funding Lender and the Servicer of (i) any Material Adverse Change in the Borrower’s financial condition, assets, properties or operations other than general changes in the re al estate market, (ii) any fact or circumstance affecting the Borrower or the Project that materially and adversely affects the Borrower’s ability to meet its obligations hereunder or under any of the other Borrower Loan Document to which it is a party in a timely manner, or (iii) the occurrence of any Potential Default or Event of Default of which the Borrower has knowledge. If the Borrower becomes subject to federal or state securities law filing requirements, the Borrower shall cause to be delivered to the Governmental Lender, the Funding Lender and the Servicer any Securities and Exchange Commission or other public filings, if any, of the Borrower within two (2) Business Days of such filing. Page 395 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 36 4933-7130-2287v5/024036-0105 Section 5.7 Cooperate in Legal Proceedings. The Borrower shall cooperate fully with the Governmental Lender, the Funding Lender, the Fiscal Agent and the Servicer with respect to, and permit the Governmental Lender, the Funding Lender, the Fiscal Agent and the Servicer at their option, to participate in, any proceedings before any Governmental Authority that may in any way affect the rights of the Governmental Lender, the Funding Lender, the Fiscal Agent and/or the Servicer under any Borrower Loan Document or Funding Loan Document. Section 5.8 Further Assurances. The Borrower shall, at the Borrower’s sole cost and expense (except as provided in Section 9.1 hereof), (i) furnish to the Servicer and the Funding Lender all instruments, documents, boundary surveys, footing or foundation surveys (to the extent that Borrower’s construction or renovation of the Project alters any existing building foundations or footprints), certificates, plans and specifications, appraisals, title and other insurance reports and agreements relating to the Project, reasonably requested by the Servicer or the Funding Lender for the better and more efficient carrying out of the intents and purposes of the Borrower Loan Documents and the Funding Loan Documents; (ii) execute and deliver to the Servicer and the Funding Lender such documents, instruments, certificates, assignments and other writings, and do such other acts necessary or desirable, to evidence, preserve and/or protect the collateral at any time securing or intended to secure the Borrower Loan, as the Servicer, the Fiscal Agent (at the direction of the Funding Lender) and the Funding Lender may reasonably require from time to time; (iii) do and execute all and such further lawful and reasonable acts, conveyances and assurances for the better and more effective carrying out of the intents and purposes of the Borrower Loan Documents and the Funding Loan Documents, as the Servicer, the Fiscal Agent (at the direction of the Funding Lender) or the Funding Lender shall reasonably require from time to time; provided, however, with respect to clauses (i)-(iii) above, the Borrower shall not be required to do anything that has the effect of (A) changing the essential economic terms of the Borrower Loan or (B) imposing upon the Borrower greater personal liability under the Borrower Loan Documents and the Funding Loan Docum ents; and (iv) upon the Servicer’s, the Fiscal Agent’s (at the direction of the Funding Lender) or the Funding Lender’s request therefor given from time to time after the occurrence of any Potential Default or Event of Default for so long as such Potential Default or Event of Default, as applicable, is continuing pay for (a) reports of UCC, federal tax lien, state tax lien, judgment and pending litigation searches with respect to the Borrower and (b) searches of title to the Project, each such search to be conducted by search firms reasonably designated by the Servicer, the Fiscal Agent (at the direction of the Funding Lender) or the Funding Lender in each of the locations reasonably designated by the Servicer, the Fiscal Agent or the Funding Lender. Section 5.9 Delivery of Financial Information. After notice to the Borrower of a Secondary Market Disclosure Document, the Borrower shall, concurrently with any delivery to the Funding Lender or the Servicer, deliver copies of all financial information required under Articl e IX. Section 5.10 Environmental Matters. So long as the Borrower owns or is in possession of the Project, the Borrower shall (a) keep the Project in compliance with all Hazardous Materials Laws (as defined in the Security Instrument), (b) promptly notify the Funding Lender and the Servicer if the Borrower shall become aware that any Hazardous Materials (as defined in the Security Instrument) are on or near the Project in violation of Hazardous Materials Laws, and (c) commence and thereafter diligently prosecute to completion all remedial work necessary with respect to the Project required under any Hazardous Material Laws, in each case as set forth in the Security Instrument or the Agreement of Environmental Indemnification. Page 396 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 37 4933-7130-2287v5/024036-0105 Section 5.11 Governmental Lender’s and Funding Lender’s Fees. The Borrower covenants to pay the reasonable fees and expenses of the Governmental Lender (including the Ongoing Governmental Lender Fee), the Fiscal Agent (including the Fiscal Agent Fees) and the Funding Lender or any agents, attorneys, accountants, consultants selected by the Governmental Lender, the Fiscal Agent or the Funding Lender to act on its respective behalf in connection with this Borrower Loan Agreement and the other Borrower Loan Documents, the Regulatory Agreement and the Funding Loan Documents, including, without limitation, any and all reasonable expenses incurred in connection with the making of the Borrower Loan or in connection with any litigation which may at any time be instituted involving the Borrower Loan, this Borrower Loan Agreement, the other Borrower Loan Documents, the Regulatory Agreement and the Funding Loan Documents or any of the other documents contemplated thereby, or in connection with the reasonable supervision or inspection of the Borrower, its properties, assets or operations or otherwise in connection with the administration of the foregoing. This obligation shall remain valid and in effect notwithstanding repayment of the Borrower Loan hereunder or termination of this Borrower Loan Agreement. Section 5.12 Estoppel Statement. The Borrower shall furnish to the Funding Lender, the Fiscal Agent or the Servicer for the benefit of the Funding Lender or the Servicer within ten (10) days after request by the Funding Lender and the Servicer, with a statement, duly acknowledged and certified, setting forth (i) the unpaid principal of the Borrower Note, (ii) the applicable Interest Rate, (iii) the date installments of interest and/or principal were last paid, (iv) any offsets or defenses to the payment of the Borrower Payment Obligations, and (v) that the Borrower Loan Documents and the Funding Loan Documents to which the Borrower is a party are valid, legal and binding obligations of the Borrower and have not been modified or, if modified, giving particulars of such modificati on, and no Event of Default exists thereunder or specify any Event of Default that does exist thereunder. The Borrower shall use commercially reasonable efforts to furnish to the Funding Lender or the Servicer, within 30 days of a request by the Funding Lender or Servicer, tenant estoppel certificates from each commercial tenant at the Project in form and substance reasonably satisfactory to the Funding Lender and the Servicer; provided that the Funding Lender and the Servicer shall not make such requests more frequently than twice in any year. Section 5.13 Defense of Actions. The Borrower shall appear in and defend any action or proceeding purporting to affect the security for this Borrower Loan Agreement hereunder or under the Borrower Loan Documents and the Funding Loan Documents, and shall pay, in the manner required by Section 2.4 hereof, all costs and expenses, including the cost of evidence of title and attorneys’ fees, in any such action or proceeding in which Funding Lender may appear. If the Borrower fails to perform any of the covenants or agreements contained in this Borrower Loan Agreement or any other Borrower Loan Document, or if any action or proceeding is commenced that is not diligently defended by the Borrower which affects the Funding Lender’s interest in the Project or any part thereof, including eminent domain, code enforcement or proceedings of any nature whatsoever under any Federal or state law, whether now existing or hereafter enacted or amended, then the Funding Lender may make such appearances, disburse such sums and take such action as the Funding Lender deems necessary or appropriate to protect its interests. Such actions include disbursement of attorneys’ fees, entry upon the Project to make repairs or take other action to protect the secu rity of the Project, and payment, purchase, contest or compromise of any encumbrance, charge or lien which in the judgment of Funding Lender appears to be prior or superior to the Borrower Loan Documents or the Funding Loan Documents. The Funding Lender shall have no obligation to do any of the above. The Funding Lender may take any such action without notice to or demand upon the Borrower. No such action shall release the Borrower from any obligation under this Borrower Loan Agreement or any of the othe r Borrower Loan Documents or Funding Loan Documents. In the event (i) that the Security Instrument is Page 397 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 38 4933-7130-2287v5/024036-0105 foreclosed in whole or in part or that any Borrower Loan Document is put into the hands of an attorney for collection, suit, action or foreclosure, or (ii) of the foreclosure of any mortgage, deed of trust or deed to secure debt prior to or subsequent to the Security Instrument or any Borrower Loan Document in which proceeding the Funding Lender is made a party or (iii) of the bankruptcy of the Borrower or an assignment by the Borrower for the benefit of its creditors, the Borrower shall be chargeable with and agrees to pay all costs of collection and defense, including actual attorneys’ fees in connection therewith and in connection with any appellate proc eeding or post-judgment action involved therein, which shall be due and payable together with all required service or use taxes. Section 5.14 Expenses. The Borrower shall pay all reasonable expenses incurred by the Governmental Lender, the Funding Lender, the Fiscal Agent and the Servicer (except as provided in Section 9.1 hereof) in connection with the Borrower Loan and the Funding Loan, including reasonable fees and expenses of the Governmental Lender’s, the Fiscal Agent’s, the Funding Lender’s and the Servicer’s attorneys, environmental, engineering and other consultants, and fees, charges or taxes for the recording or filing of the Borrower Loan Documents and the Funding Loan Documents. The Borrower shall pay or cause to be paid all reasonable expenses of the Gover nmental Lender, the Funding Lender, the Fiscal Agent and the Servicer (except as provided in Section 9.1 hereof) in connection with the issuance or administration of the Borrower Loan and the Funding Loan, including audit costs, inspection fees, settlement of condemnation and casualty awards, and premiums for title insurance and endorsements thereto. The Borrower shall, upon request, promptly reimburse the Governmental Lender, the Funding Lender, the Fiscal Agent and the Servicer for all reasonable amounts expended, advanced or incurred by the Governmental Lender, the Funding Lender, the Fiscal Agent and the Servicer to collect the Borrower Note, or to enforce the rights of the Governmental Lender, the Funding Lender, the Fiscal Agent and the Servicer under this Borrower Loan Agreement or any other Borrower Loan Document, or to defend or assert the rights and claims of the Governmental Lender, the Funding Lender, the Fiscal Agent and the Servicer under the Borrower Loan Documents and the Funding Loan Documents arising out of an Event of Default or with respect to the Project (by litigation or other proceedings) arising out of an Event of Default, which amounts will include all court costs, attorneys’ fees and expenses, fees of auditors and accountants, and in vestigation expenses as may be reasonably incurred by the Governmental Lender, the Funding Lender, the Fiscal Agent and the Servicer in connection with any such matters (whether or not litigation is instituted), together with interest at the Default Rate on each such amount from the Date of Disbursement until the date of reimbursement to the Governmental Lender, the Funding Lender, the Fiscal Agent and the Servicer, all of which shall constitute part of the Borrower Loan and the Funding Loan and shall be se cured by the Borrower Loan Documents and the Funding Loan Documents. The obligations and liabilities of the Borrower under this Section 5.14 shall survive the Term of this Borrower Loan Agreement and the exercise by the Governmental Lender, the Funding Le nder, the Fiscal Agent or the Servicer, as the case may be, of any of its rights or remedies under the Borrower Loan Documents and the Funding Loan Documents, including the acquisition of the Project by foreclosure or a conveyance in lieu of foreclosure. Notwithstanding the foregoing, the Borrower shall not be obligated to pay amounts incurred as a result of the gross negligence or willful misconduct of any other party, and any obligations of the Borrower to pay for environmental inspections or audits will be governed by Section 18(i) and 43(i) of the Security Instrument. Section 5.15 Indemnity. In addition to its other obligations hereunder, and in addition to any and all rights of reimbursement, indemnification, subrogation and other rights of Governmental Lender, the Fiscal Agent or Funding Lender pursuant hereto, pursuant to the Regulatory Agreement and under law or equity, to the fullest extent permitted by law, the Borrower agrees to indemnify, hold harmless and defend the Governmental Lender, the Funding Lender, the Fiscal Agent, the Servicer, the Page 398 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 39 4933-7130-2287v5/024036-0105 Beneficiary Parties, Citigroup, Inc., and each of their respective commissioners, officers, directors, employees, attorneys and agents (each an “Indemnified Party”), against any and all losses, damages, claims, actions, liabilities, reasonable costs and expenses of any nature, kind or character (including, without limitation, reasonable attorneys’ fees, litigation and court costs, amounts paid in settlement (to the extent that the Borrower has consented to such settlement ) and amounts paid to discharge judgments) (hereinafter, the “Liabilities”) to which the Indemnified Parties, or any of them, may become subject under federal or state securities laws or any other statutory law or at common law or otherwise, to the extent arising out of or based upon or in any way relating to: (a) The Borrower Loan Documents and the Funding Loan Documents or the execution or amendment thereof or in connection with transactions contemplated thereby, including the sale, transfer or resale of the Borrower Loan or the Funding Loan, except with respect to any Secondary Market Disclosure Document (other than any Borrower’s obligations under Article IX); (b) Any act or omission of the Borrower or any of its agents, contractors, servants, employees or licensees in connection with the Borrower Loan, the Funding Loan or the Project, the operation of the Project, or the condition, environmental or otherwise, occupancy, use, possession, conduct or management of work done in or about, or from the planning, design , acquisition, construction, installation or rehabilitation of, the Project or any part thereof; (c) Any lien (other than a Permitted Lien) or charge upon payments by the Borrower to the Governmental Lender, the Fiscal Agent or the Funding Lender hereunder, or any taxes (including, without limitation, all ad valorem taxes and sales taxes), assessments, impositions and Other Charges imposed on the Governmental Lender, the Fiscal Agent or the Funding Lender in respect of any portion of the Project; (d) Any violation of any environmental law, rule or regulation with respect to, or the release of any toxic substance from, the Project or any part thereof during the period in which the Borrower is in possession or control of the Project; (e) The enforcement of, or any action taken by the Governmental Lender, the Fiscal Agent or the Funding Lender related to remedies under, this Borrower Loan Agreement and the other Borrower Loan Documents and the Funding Loan Documents; (f) Any untrue statement or misleading statement or alleged untrue statement or alleged misleading statement of a material fact by the Borrower made in the course of Borrower applying for the Borrower Loan or the Funding Loan or contained in any of the Borrower Loan Documents or Funding Loan Documents to which the Borrower is a party; (g) Any Determination of Taxability; (h) Any breach (or alleged breach) by Borrower of any representation, warranty or covenant made in or pursuant to this Borrower Loan Agreement or in connection with any written or oral representation, presentation, report, appraisal or other information given or delivered by Borrower, General Partner, Guarantor or their Affiliates to Governmental Lender, the Fiscal Agent the Funding Lender, Servicer or any other Person in connection with the Borrower’s appli cation for the Borrower Loan and the Funding Loan (including, without limitation, any breach or alleged breach by Borrower of any agreement with respect to the provision of any substitute credit enhancement); Page 399 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 40 4933-7130-2287v5/024036-0105 (i) any failure (or alleged failure) by Borrower, t he Funding Lender or Governmental Lender to comply with applicable federal and state laws and regulations pertaining to the making of the Borrower Loan and the Funding Loan; (j) the Project, or the condition, occupancy, use, possession, conduct or management of, or work done in or about, or from the planning, design, acquisition, installation, construction or rehabilitation of, the Project or any part thereof; or (k) the use of the proceeds of the Borrower Loan and the Funding Loan, except in the case of the foregoing indemnification of the Governmental Lender or any related Indemnified Party, to the extent such damages the direct result of the willful misconduct of such Indemnified Party, as finally adjudicated on a non-appealable basis by a court of competent jurisdiction, and except in the case of the foregoing indemnification of the Funding Lender or the Servicer or any related Indemnified Party, to the extent such damages are caused by the gross negligence or willful misconduct of such Indemnified Party. Notwit hstanding anything herein to the contrary, the Borrower’s indemnification obligations to the parties specified in Section 9.1.4 hereof with respect to any securitization or Secondary Market Transaction described in Article IX hereof shall be limited to the indemnity set forth in Section 9.1.4 hereof. In the event that any action or proceeding is brought against any Indemnified Party with respect to which indemnity may be sought hereunder, the Borrower, upon written notice from the Indemnified Party (which notice shall be timely given so as not to materially impair the Borrower’s right to defend), shall assume the investigation and defense thereof, including the employment of counsel reasonably approved by the Indemnified Party, and shall assume the payment of all expenses related thereto, with full power to litigate, compromise or settle the same in its sole discretion; provided that the Indemnified Party shall have the right to review and approve or disapprove any such compromise or settlement, which approval shall not be unreasonably withheld. Each Indemnified Party shall have the right to employ separate counsel in any such action or proceeding and to participate in the investigation and defense thereof. The Borrower shall pay the reasonable fees and expenses of such separate counsel; provided, however, that such Indemnified Party may only employ separate counsel at the expense of the Borrower if and only if in such Indemnified Party’s good faith judgment (based on the advice of counsel) a conflict of int erest exists or could arise by reason of common representation. Notwithstanding any transfer of the Project to another owner in accordance with the provisions of this Borrower Loan Agreement or the Regulatory Agreement, the Borrower shall remain obligated to indemnify each Indemnified Party pursuant to this Section 5.15 if such subsequent owner fails to indemnify any party entitled to be indemnified hereunder, unless the Governmental Lender and the Funding Lender have consented to such transfer and to the a ssignment of the rights and obligations of the Borrower hereunder. The rights of any persons to indemnity hereunder shall survive the final payment or defeasance of the Borrower Loan and the Funding Loan and in the case of the Fiscal Agent and the Servicer, any resignation or removal thereof, respectively. The provisions of this Section 5.15 shall survive the termination of this Borrower Loan Agreement. The indemnity, set forth in this Section 5.15, shall include fees and expenses incurred by the Fiscal Agent in the enforcement of this Section 5.15. Page 400 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 41 4933-7130-2287v5/024036-0105 The foregoing provisions of this Section 5.15 are not intended to and shall not negate, modify, limit or change the provisions of Section 9 of the Borrower Note. Section 5.16 No Warranty of Condition or Suitability by the Governmental Lender or Funding Lender. Neither the Governmental Lender nor the Funding Lender makes any warranty, either express or implied, as to the condition of the Project or that it will be suitable for the Borrower’s purposes or needs. Section 5.17 Right of Access to the Project. The Borrower agrees that the Governmental Lender, the Funding Lender, the Servicer and the Construction Consultant, and their duly authorized agents, attorneys, experts, engineers, accountants and representatives shall have the right, but no obligation, at all reasonable times during business hours and upon reasonable notice, to enter onto the Land (a) to examine, test and inspect the Project without material interference or prejudice to the Borrower’s operations and (b) to perform such work in and about the Project made necessary by reason of the Borrower’s default under any of the provisions of this Borrower Loan Agreement. The Governmental Lender, the Funding Lender, the Servicer, and their duly authorized agents, attorneys, accountants and representatives shall also be permitted, without any obligation to do so, at all reasonable times and upon reasonable notice during business hours, to examine the books and records of the Borrower with respect to the Project. Section 5.18 Notice of Default. The Borrower will advise the Governmental Lender, the Funding Lender, the Fiscal Agent and the Servicer as soon as possible, and in any event not later than five (5) Business Days after the occurrence of any Potential Default or Event of Default with a statement of an Authorized Representative of Borrower describing the details of such Potential Default or Event of Default and any curative action Borrower proposes to take. Section 5.19 Covenant with Governmental Lender and Funding Lender. The Borrower agrees that this Borrower Loan Agreement is executed and delivered in part to induce the purchase by others of the Governmental Lender Note and, accordingly, all covenants and agreements of the Borrower contained in this Borrower Loan Agreement are hereby declared to be for the benefit of the Governmental Lender, the Fiscal Agent, the Funding Lender and any lawful owner, holder or pledgee of the Borrower Note or the Governmental Lender Note from time to time. Section 5.20 Obligation of the Borrower to Construct or Rehabilitate the Project. The Borrower shall proceed with reasonable dispatch to construct or rehabilitate, as appropriate, and equip the Project. If the proceeds of the Borrower Loan, together with the Other Borrower Moneys, available to be disbursed to the Borrower are not sufficient to pay the costs of such construction or rehabilitation, as appropriate, and equipping, the Borrower shall pay such additional costs from its own funds. The Borrower shall not be entitled to any reimbursement from the Governmental Lender, the Fiscal Agent, the Funding Lender or the Servicer in respect of any such costs or to any diminution or abatement in the repayment of the Borrower Loan. The Governmental Lender, the Fiscal Agent and the Funding Lender shall not be liable to the Borrower or any other person if for any reason the Project is not completed or if the proceeds of the Borrower Loan are insufficient to pay all costs of the Project. The Governmental Lender, the Fiscal Agent and the Funding Lender do not make any representation or warranty, either express or implied, that moneys, if any, which will be made available to the Borrower will be sufficient to complete the Project, and the Governmental Lender, the Fiscal Agent and the Funding Lender shall not be liable to the Borrower or any other person if for any reason the Project is not completed. Page 401 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 42 4933-7130-2287v5/024036-0105 Section 5.21 Maintenance of Insurance. Borrower will maintain the insurance required by the Security Instrument. Section 5.22 Information; Statements and Reports. Borrower shall furnish or cause to be furnished to Funding Lender and, with respect to subsection (a) only, to Governmental Lender: (a) Notice of Default. As soon as possible, and in any event not later than five (5) Business Days after the occurrence of any Event of Default or Potential Default, a statement of an Authorized Representative of Borrower describing the details of such Event of Default or Potential Default and any curative action Borrower proposes to take; (b) Financial Statements; Rent Rolls. In the manner and to the extent required under the Security Instrument, such financial statements, expenses statements, rent rolls, reports and other financial documents and information as required by the Security Instrument and the other Borrower Loan Documents and Funding Loan Documents, in the form and within the time periods required therein; (c) General Partner. As soon as available and in any event within one hundred twenty (120) days after the end of each fiscal year of General Partner, copies of the financial statements of General Partner as of such date, prepared in substantially the form previously delivered to the Governmental Lender and Funding Lender and in a manner consistent therewith, or in such form (which may include a form prepared in accordance with GAAP) as Funding Lender may reasonably request; (d) Leasing Reports. Prior to the Conversion Date, on a monthly basis (and in any event within fifteen (15) days after the end of each Calendar Month), a report of all efforts made by Borrower, if any, to lease all or any portio n of the Project during such Calendar Month and on a cumulative basis since Project inception, which report shall be prepared and delivered by Borrower, shall be in form and substance satisfactory to Funding Lender, and shall, if requested by Funding Lender, be supported by copies of letters of intent, leases or occupancy agreements, as applicable; (e) Audit Reports. Promptly upon receipt thereof, copies of all reports, if any, submitted to Borrower by independent public accountants in connection with each ann ual, interim or special audit of the financial statements of Borrower made by such accountants, including the comment letter submitted by such accountants to management in connection with their annual audit; (f) Notices; Certificates or Communications. Immediately upon giving or receipt thereof, copies of any notices, certificates or other communications delivered at the Project or to Borrower or General Partner naming Governmental Lender or Funding Lender as addressee or which could reasonably be deemed to affect the structural integrity of the Project or the ability of Borrower to perform its obligations under the Borrower Loan Documents and the Funding Loan Documents; (g) Certification of Non-Foreign Status. Promptly upon request of Funding Lender from time to time, a Certification of Non-Foreign Status, executed on or after the date of such request by Funding Lender; (h) Compliance Certificates. Together with each of the documents required pursuant to Section 5.22(b) hereof submitted by or on behalf of Borrower, a statement, in form and substance satisfactory to Funding Lender and certified by an Authorized Borrower Representative, to Page 402 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 43 4933-7130-2287v5/024036-0105 the effect that Borrower is in compliance with all covenants, terms and conditions applicable to Borrower, under or pursuant to the Borrower Loan Documents and the Funding Loan Documents and under or pursuant to any other Debt owing by Borrower to any Person, and disclosing any noncompliance therewith, and any Event of Default or Potential Default, and describing the status of Borrower’s actions to correct such noncompliance, Event of Default or Potential Default, as applicable; and (i) Other Items and Information. Such other information concerning the assets, business, financial condition, operations, property and results of operations of Borrower, General Partner, Guarantor or the Project, as Funding Lender or Governmental Lender reasonably requests from time to time. Borrower shall furnish to Governmental Lender, upon its written request, any of the items described in the foregoing subsections (b) through and including (i) above. Section 5.23 Additional Notices. Borrower will, promptly after becoming aware thereof, give notice to Funding Lender and the Governmental Lender of: (a) any Lien affecting the Project, or any part thereof, other than Liens expre ssly permitted under this Borrower Loan Agreement; (b) any Legal Action which is instituted by or against Borrower, General Partner or Guarantor, or any Legal Action which is threatened against Borrower, General Partner or Guarantor which, in any case, if adversely determined, could have a material adverse effect upon the business, operations, properties, assets, management, ownership or financial condition of Borrower, General Partner, Guarantor or the Project; (c) any Legal Action which constitutes an Event of De fault or a Potential Default or a default under any other Contractual Obligation to which Borrower, General Partner or Guarantor is a party or by or to which Borrower, General Partner or Guarantor, or any of their respective properties or assets, may be bound or subject, which default would have a material adverse effect on the business, operations, assets (including the Project), or financial condition of Borrower, General Partner or Guarantor, as applicable; (d) any default, alleged default or potential defau lt on the part of Borrower under any of the CC&R’s (together with a copy of each notice of default, alleged default or potential default received from any other party thereto); (e) any notice of default, alleged default or potential default on the part of Borrower received from any tenant or occupant of the Project under or relating to its lease or occupancy agreement (together with a copy of any such notice), if, in the aggregate, notices from at least fifteen percent (15%) of the tenants at the Project have been received by Borrower with respect to, or alleging, the same default, alleged default or potential default; (f) any change or contemplated change in (i) the location of Borrower’s or General Partner’s executive headquarters or principal place of business; (ii) the legal, trade, or fictitious business names used by Borrower or General Partner; or (iii) the nature of the trade or business of Borrower; and Page 403 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 44 4933-7130-2287v5/024036-0105 (g) any default, alleged default or potential default on the part of any general or limited partner (including, without limitation, General Partner and the Equity Investor) under the Partnership Agreement. Section 5.24 Compliance with Other Agreements; Legal Requirements. (a) Borrower shall timely perform and comply with, and shall cause General Partner to timely perform and comply with the covenants, agreements, obligations and restrictions imposed on them under the Partnership Agreement, and Borrower shall not do or permit to be done anything to impair any such party’s rights or interests under any of the foregoing. (b) Borrower will comply and, to the extent it is able, will require others to comply with, all Legal Requirements of all Governmental Authorities having jurisdiction over the Project or construction and/or rehabilitation of the Improvements, and will furnish Funding Lende r with reports of any official searches for or notices of violation of any requirements established by such Governmental Authorities. Borrower will comply and, to the extent it is able, will require others to comply, with applicable CC&R’s and all restric tive covenants and all obligations created by private contracts and leases which affect ownership, construction, rehabilitation, equipping, fixturing, use or operation of the Project, and all other agreements requiring a certain percentage of the Units to be rented to persons of low or moderate income. The Improvements, when completed, shall comply with all applicable building, zoning and other Legal Requirements, and will not violate any restrictions of record against the Project or the terms of any other lease of all or any portion of the Project. Funding Lender and Governmental Lender shall at all times have the right to audit, at Borrower’s expense, Borrower’s compliance with any agreement requiring a certain percentage of the Units to be rented to persons of low or moderate income, and Borrower shall supply all such information with respect thereto as Funding Lender or Governmental Lender, as applicable, may request and otherwise cooperate with Funding Lender or Governmental Lender, as applicable, in any such audit. Without limiting the generality of the foregoing, Borrower shall properly obtain, comply with and keep in effect (and promptly deliver copies to Funding Lender of) all permits, licenses and approvals which are required to be obtained from Governmental Authorities in order to construct, occupy, operate, market and lease the Project. Section 5.25 Completion and Maintenance of Project. Borrower shall cause the construction or rehabilitation, as the case may be, of the Improvements, to be prosecuted with di ligence and continuity and completed substantially in accordance with the Plans and Specifications, and in accordance with the Construction Funding Agreement, free and clear of any liens or claims for liens (but without prejudice to Borrower’s rights of contest under Section 10.16 hereof) (“Completion”) on or before the Completion Date. Borrower shall thereafter maintain the Project as a residential apartment complex in good order and condition, ordinary wear and tear excepted. A maintenance program shall be in place at all times to assure the continuation of first class maintenance. Section 5.26 Fixtures. Borrower shall deliver to Funding Lender, on demand, any contracts, bills of sale, statements, receipted vouchers or agreements under which Borrower or any other Pe rson claims title to any materials, fixtures or articles incorporated into the Improvements. Section 5.27 Income from Project. Borrower shall first apply all Gross Income to Expenses of the Project, including all amounts then required to be paid under the Borrower Loa n Documents and the Funding Loan Documents and the funding of all sums necessary to meet the Replacement Reserve Fund Requirement, before using or applying such Gross Income for any other Page 404 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 45 4933-7130-2287v5/024036-0105 purpose. Borrower shall not make or permit any distributions or othe r payments of Net Operating Income to its partners, shareholders or members, as applicable, in each case, without the prior Written Consent of Funding Lender, except for (i) developer fee payments, (ii) any asset management fees due to the Equity Investor, and (iii) following Completion, fees due to any general partner, each of which shall be paid in accordance with the terms of the Partnership Agreement. Section 5.28 Leases and Occupancy Agreements. (a) Lease Approval. (i) Borrower may enter into leases of space within the Improvements (and amendments to such leases) in the ordinary course of business with bona fide third party tenants without Funding Lender’s prior Written Consent if: (A) The lease is a Permitted Lease; (B) Borrower, acting in good faith following the exercise of due diligence, has determined that the tenant meets requirements imposed under any applicable CC&R and is financially capable of performing all of its obligations under the lease; and (C) The lease conforms to the Rent Schedule attached as an exhibit to the Construction Funding Agreement and reflects an arm’s-length transaction, subject to the requirement that the Borrower comply with any applicable CC&R. (ii) If any Event of Default has occurred and is continuing, Funding Lender may make written demand on Borrower to submit all future leases for Funding Lender’s approval prior to execution. Borrower shall comply with any such demand by Funding Lender. (iii) No approval of any lease by Funding Lender shall be for any purpose other than to protect Funding Lender’s security for the Borrower Loan and to preserve Funding Lender’s rights under the Borrower Loan Documents and the Funding Loan Documents. No approval by Funding Lender shall result in a waiver of any default of Borrower. In no event shall any approval by Funding Lender of a lease be a representation of any kind with regard to the lease or its enforceability, or the financial capacity of any tenant or guarantor. (b) Landlord’s Obligations. Borrower shall perform all obligations required to be performed by it as landlord under any lease affecting any part of the Project or any space within the Improvements. (c) Leasing and Marketing Agreements. Except as may be contemplated in the Management Agreement with Borrower’s Manager, Borrower shall not without the approval of Funding Lender enter into any leasing or marketing agreement and Funding Lender reserves the right to approve the qualifications of any marketing or leasing agent. Section 5.29 Project Agreements and Licenses. To the extent not heretofore delivered to Funding Lender, Borrower will furnish to Funding Lender, as soon as available, true and correct copies of all Project Agreements and Licenses and the Plans and Specifications, together with assignments thereof to Funding Lender and consents to such assignments where required by Funding Lender, all in form and substance acceptable to Funding Lender. Neither Borrower nor General Partner has assigned Page 405 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 46 4933-7130-2287v5/024036-0105 or granted, or will assign or grant, a security interest in any of the Project Agreements and Licenses, other than to Funding Lender. Section 5.30 Payment of Debt Payments. In addition to its obligations under the Borrower Note, Borrower will (i) duly and punctually pay or cause to be paid all principal of and interest on any Debt of Borrower as and when the same become due on or before the due date; (ii) comply with and perform all conditions, terms and obligations of other instruments or agreements evidencing or securing such Debt; (iii) promptly inform Funding Lender of any default, or anticipated default, under any such note, agreement, instrument; and (iv) forward to Funding Lender a copy of any notice of default or notice of any event that might result in default under any such note, agreement, instrument, including Liens encumbering the Project, or any portion thereof, which have been subor dinated to the Security Instrument (regardless of whether or not permitted under this Borrower Loan Agreement). Section 5.31 ERISA. Borrower will comply, and will cause each of its ERISA Affiliates to comply, in all respects with the provisions of ERISA, to the extent applicable. Section 5.32 Patriot Act Compliance. Borrower shall use its good faith and commercially reasonable efforts to comply with the Patriot Act and all applicable requirements of Governmental Authorities having jurisdiction over Borrower and/or the Project, including those relating to money laundering and terrorism. Funding Lender shall have the right to audit Borrower’s compliance with the Patriot Act and all applicable requirements of Governmental Authorities having jurisdiction over Borrower and/or the Project, including those relating to money laundering and terrorism. In the event that Borrower fails to comply with the Patriot Act or any such requirements of Governmental Authorities, then Funding Lender may, at its option, cause Borrower to comply therewith and any and all costs and expenses incurred by Funding Lender in connection therewith shall be secured by the Security Instrument and shall be immediately due and payable. Borrower covenants that it shall comply with all Legal Requirements and internal req uirements of Funding Lender relating to money laundering, anti -terrorism, trade embargos and economic sanctions, now or hereafter in effect. Without limiting the foregoing, Borrower shall not take any action, or permit any action to be taken, that would c ause Borrower’s representations and warranties in Section 4.1.48 and this Section 5.32 become untrue or inaccurate at any time during the term of the Funding Loan. Upon any Beneficiary Party’s request from time to time during the term of the Funding Loan, Borrower shall certify in writing to such Beneficiary Party that Borrower’s representations, warranties and obligations under Section 4.1.48 and this Section 5.32 remain true and correct and have not been breached, and in addition, upon request of any Beneficiary Party, Borrower covenants to provide all information required to satisfy obligations under all Legal Requirements and internal requirements of Funding Lender relating to money laundering, anti-terrorism, trade embargos and economic sanctions, now or hereafter in effect, during the term of the Funding Loan. Borrower shall immediately notify the Funding Lender in writing of (a) Borrower’s actual knowledge that any of such representations, warranties or covenants are no longer true and have been brea ched, (b) Borrower has a reasonable basis to believe that they may no longer be true and have been breached or (c) Borrower becomes the subject of an investigation by Governmental Authorities related to money laundering, anti-terrorism, trade embargos and economic sanctions. Borrower shall also reimburse Funding Lender for any expense incurred by Funding Lender in evaluating the effect of an investigation by Governmental Authorities on the Funding Loan and Funding Lender’s interest in the collateral for t he Funding Loan, in obtaining necessary license from Governmental Authorities as may be necessary for Funding Lender to enforce its rights under the Funding Loan Documents, and in complying with all Legal Requirements and internal requirements of Funding Lender relating to money laundering, anti- Page 406 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 47 4933-7130-2287v5/024036-0105 terrorism, trade embargos and economic sanctions, now or hereafter in effect applicable to Funding Lender as a result of the existence of such an event and for any penalties or fines imposed upon Funding Lender as a result thereof. Section 5.33 Funds from Equity Investor. Borrower shall cause the Equity Investor to fund all installments of the Equity Contributions in the amounts and at the times subject and according to the terms of the Partnership Agreement. Section 5.34 Tax Covenants. The Borrower further represents, warrants and covenants as follows: (a) General. The Borrower shall not take any action or omit to take any action which, if taken or omitted, respectively, would adversely affect the exclusion of interest on the Governmental Lender Note from gross income (as defined in Section 61 of the Code), for federal income tax purposes and, if it should take or permit any such action, the Borrower will take all lawful actions that it can take to rescind such action promptly upon having know ledge thereof and that the Borrower will take such action or actions, including amendment of this Borrower Loan Agreement, the Security Instrument and the Regulatory Agreement, as may be necessary, in the opinion of Tax Counsel, to comply fully with all applicable rules, rulings, policies, procedures, regulations or other official statements promulgated or proposed by the Department of the Treasury or the Internal Revenue Service applicable to the Governmental Lender Note, the Funding Loan or affecting the Project. Capitalized terms used in this Section 5.34 shall have the respective meanings assigned to them in the Regulatory Agreement or, if not defined therein, in the Funding Loan Agreement. With the intent not to limit the generality of the foregoing, the Borrower covenants and agrees that, prior to the final maturity of the Governmental Lender Note, unless it has received and filed with the Governmental Lender and the Funding Lender a Tax Counsel No Adverse Effect Opinion, as such term is defined in the Funding Loan Agreement (other than with respect to interest on any portion of the Governmental Lender Note for a period during which such portion of the Governmental Lender Note are held by a “substantial user” of any facility financed with the proceeds of the Governmental Lender Note or a “related person,” as such terms are used in Section 147(a) of the Code), the Borrower will comply with this Section 5.34. (b) Use of Proceeds. The use of the net proceeds of the Funding Loan at all times will satisfy the following requirements: (i) Limitation on Net Proceeds. At least 95% of the net proceeds of the portion of the Funding Loan evidenced by the Governmental Lender Note (within the meaning of the Code) actually expended by Borrower shall be used to pay Qualified Project Costs that are costs of a “qualified residential rental project” (within the meaning of Sections 142(a)(7) and 142(d) of the Code) and property that is “functionally related and subordinate” thereto (within the meaning of Sections 1.103-8(a)(3) and 1.103-8(b)(4)(iii) of the Regulations). (ii) Limit on Costs of Funding. The proceeds of the Funding Loan will be expended by Borrower for the purposes set forth in this Borrower Loan Agreement and in the Funding Loan Agreement and no portion thereof in excess of two percent of the proceeds of the portion of the Funding Loan evidenced by the Governmental Lender Note, within the meaning of Section 147(g) of the Code, will be expended to pay Costs of Funding. Page 407 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 48 4933-7130-2287v5/024036-0105 (iii) Prohibited Facilities. The Borrower shall not use or permit the use of any proceeds of the portion of the Funding Loan evidenced by the Governmental Lender Note or any income from the investment thereof to provide any airplane, skybox, or other private luxury box, health club facility, any facility primarily used for gambling, or any store the principal business of which is the sale of alcoholic beverages for consumption off premises. (iv) Limitation on Land. Less than 25 percent of the net proceeds of the portion of the Funding Loan evidenced by the Governmental Lender Note actually expended by Borrower will be used, directly or indirectly, for the acquisition of land or an interest therein, nor will any portion of the net proceeds of the portion of the Funding Loan evidenced by the Governmental Lender Note be used, directly or indirectly, for the acquisition of land or an interest therein to be used for farming purposes. (v) Limitation on Existing Facilities. No portion of the net proceeds of the portion of the Funding Loan evidenced by the Governmental Lender Note will be used for the acquisition of any existing property or an interest therein unless (A) the first use of such property is pursuant to such acquisition or (B) the rehabilitation expenditures with respect to any building and the equipment therefor equal or exceed 15 percent of the cost of acquiring such building financed with the proceeds of the portion of the Funding Loan evidenced by the Governmental Lender Note (with respect to structures other than buildings, this clause shall be applied by substituti ng 100 percent for 15 percent). For purposes of the preceding sentence, the term “rehabilitation expenditures” shall have the meaning set forth in Section 147(d)(3) of the Code. (vi) Accuracy of Information. The information furnished by the Borrower and used by the Governmental Lender in preparing its certifications with respect to Section 148 of the Code and the Borrower’s information statement pursuant to Section 149(e) of the Code is accurate and complete as of the date of origination of the Funding Loan. (vii) Limitation of Project Expenditures. The acquisition and construction of the Project were not commenced (within the meaning of Section 144(a) of the Code) prior to the 60th day preceding the adoption of the resolution of the Governmental Lender with respect to the Project on April 21, 2026, and no obligation for which reimbursement will be sought from proceeds of the portion of the Funding Loan evidenced by the Governmental Lender Note relating to the acquisition or construction of the Project was paid or in curred prior to 60 days prior to such date, except for permissible “preliminary expenditures”, which include architectural, engineering surveying, soil testing, reimbursement bond issuance and similar costs incurred prior to the commencement of the acquisition and construction of the Project. (viii) Qualified Costs. The Borrower hereby represents, covenants and warrants that the proceeds of the portion of the Funding Loan evidenced by the Governmental Lender Note shall be used or deemed used by Borrower exclusively to pay Qualified Project Costs. (c) Limitation on Maturity. The average maturity of the Governmental Lender Note does not exceed 120 percent of the average reasonably expected economic life of the Project to be financed by the Funding Loan, weighted in proportion to the respective cost of each item comprising the property the cost of which has been or will be financed, directly or indirectly, with the net proceeds of the portion of the Funding Loan evidenced by the Governmental Lender Note. For purposes of the preceding sentence, the reasonably expected economic life of property shall be determined as of the later of (A) the Closing Date for the Funding Loan or (B) the date on which such property is placed in Page 408 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 49 4933-7130-2287v5/024036-0105 service (or expected to be placed in service). In addition, land shall not be taken into account in determining the reasonably expected economic life of property. (d) No Arbitrage. The Borrower shall not take any action or omit to take any action with respect to the Gross Proceeds of the Funding Loan or of any amounts expected to be used to pay the principal thereof or the interest thereon which, if taken or omitted, respectively, would cause the Governmental Lender Note to be classified as an “arbitrage bond” within the meaning of Section 148 of the Code. Except as provided in the Funding Loan Agreement and this Borrower Loan Agreement, the Borrower shall not pledge or otherwise encumber, or permit the pledge or encumbrance of, any money, investment, or investment property as security for payment of any amounts due under this Borrower Loan Agreement or the Borrower Note relating to the portion of the Funding Loan evidenced by the Governmental Lender Note, shall not establish any segregated reserve or similar fund for such purpose and shall not prepay any such amounts in advance of the redemption date of an equal principal amount of the Funding Loan, unless the Borrower has obtained in each case a Tax Counsel No Adverse Effect Opinion with respect to such action, a copy of which shall be provided to the Governmental Lender and the Funding Lender. The Borrower shall not, at any time prior to the final maturity of the Funding Loan, invest or cause any Gross Proceeds to be invested in any investment (or to use Gross Proceeds to replace money so invested), if, as a result of such investment the Yield of all investments acquired with Gross Proceeds (or with money replaced thereby) on or prior to the date of such investment exceeds the Yield of the portion of the Funding Loan evidenced by the Governmental Lender Note to the Maturity Date, except as permitted by Section 148 of the Code and Regulations thereunder or as provided in the Regulatory Agreement. The Borrower further covenants and agrees that it will comply with all applicable requirements of said Section 148 and the rules and Regulations thereunder relating to the portion of the Funding Loan evidenced by the Governmental Lender Note and the interest thereon, including the employment of a Rebate Analyst acceptable to the Governmental Lender and Funding Lender for the calculation of rebatable amounts to the United States Treasury Department. The Borrower agrees that it will cause the Rebate Analyst to calcu late the rebatable amounts not later than forty-five days after the fifth anniversary of the Closing Date and each five years thereafter, and not later than forty-five days after the final Computation Date, and agrees that the Borrower will pay all costs associated therewith. The Borrower agrees to provide evidence of the employment of the Rebate Analyst satisfactory to the Governmental Lender and Funding Lender and will provide to the Governmental Lender copies of all rebate calculations obtained from the Rebate Analyst. (e) No Federal Guarantee. Except to the extent permitted by Section 149(b) of the Code and the Regulations and rulings thereunder, the Borrower shall not take or omit to take any action which would cause the Governmental Lender Note to be “federally guaranteed” within the meaning of Section 149(b) of the Code and the Regulations and rulings thereunder. (f) Representations. The Borrower has supplied or caused to be supplied to Tax Counsel all documents, instruments and written information requeste d by Tax Counsel, and all such documents, instruments and written information supplied by or on behalf of the Borrower at the request of Tax Counsel, which have been reasonably relied upon by Tax Counsel in rendering its opinion with respect to the exclusion from gross income of the interest on the Governmental Lender Note for federal income tax purposes, are true and correct in all material respects, do not contain any untrue statement of a material fact and do not omit to state any material fact necessary to be stated therein in order to make the information provided therein, in light of the circumstances under which such information was provided, not misleading, and the Borrower is not aware of any other pertinent information which Tax Counsel has not requested. Page 409 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 50 4933-7130-2287v5/024036-0105 (g) Qualified Residential Rental Project. The Borrower hereby covenants and agrees that the Project will be operated as a “qualified residential rental project” within the meaning of Section 142(d) of the Code, on a continuous basis during the longer of the Qualified Project Period (as defined in the Regulatory Agreement) or any period during which any portion of the Governmental Lender Note remain outstanding, to the end that the interest on the Governmental Lender Note shall be excluded from gross income for federal income tax purposes. The Borrower hereby covenants and agrees, continuously during the Qualified Project Period, to comply with all the provisions of the Regulatory Agreement. (h) Information Reporting Requirements. The Borrower will comply with the information reporting requirements of Section 149(e)(2) of the Code requiring certain information regarding the Governmental Lender Note to be filed with the Internal Revenue Service within prescribed time limits. (i) Funding Loan Not a Hedge Bond. The Borrower covenants and agrees that not more than 50% of the proceeds of the portion of the Funding Loan evidenced by the Governmental Lender Note will be invested in Nonpurpose Investments having a substantially guaranteed Yield for four years or more within the meaning of Section 149(f)(3)(A)(ii) of the Code, and the Borrower reasonably expects that at least 85% of the spendable proceeds of the portion of the Funding Loan evidenced by the Governmental Lender Note will be used to carry out the governmental purposes of the Funding Loan within the three-year period beginning on the Closing Date. (j) Termination of Restrictions. Although the parties hereto recognize that, subject to the provisions of the Regulatory Agreement, the provisions of this Borrower Loa n Agreement shall terminate in accordance with Section 10.14 hereof, the parties hereto recognize that pursuant to the Regulatory Agreement, certain requirements, including the requirements incorporated by reference in this Section, may continue in effect beyond the term hereof. (k) Public Approval. The Borrower covenants and agrees that the proceeds of the Funding Loan will not be used by Borrower in a manner that deviates in any substantial degree from the Project described in the written notice of a public hearing regarding the Funding Loan. (l) 40/60 Test Election. The Borrower and the Governmental Lender hereby elect to apply the requirements of Section 142(d)(1)(B) to the Project. The Borrower hereby represents, covenants and agrees, continuously during the Qualified Project Period, to comply with all the provisions of the Regulatory Agreement. (m) Modification of Tax Covenants. Subsequent to the origination of the Funding Loan and prior to its payment in full (or provision for the payment thereof having been m ade in accordance with the provisions of the Funding Loan Agreement), this Section 5.34 hereof may not be amended, changed, modified, altered or terminated except as permitted herein and by the Funding Loan Agreement and with the Written Consent of the Governmental Lender and the Funding Lender. Anything contained in this Borrower Loan Agreement or the Funding Loan Agreement to the contrary notwithstanding, the Governmental Lender, the Fiscal Agent, the Funding Lender and the Borrower hereby agree to amend this Borrower Loan Agreement and, if appropriate, the Funding Loan Agreement and the Regulatory Agreement, to the extent required, in the opinion of Tax Counsel, in order for interest on the Governmental Lender Note to remain excludable from gross income for federal income tax purposes. The party requesting such amendment, which may include the Funding Lender, shall notify the other parties to this Borrower Loan Agreement of the proposed amendment and send a Page 410 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 51 4933-7130-2287v5/024036-0105 copy of such requested amendment to Tax Counsel. After review of such proposed amendment, Tax Counsel shall render to the Funding Lender and the Governmental Lender an opinion as to the effect of such proposed amendment upon the includability of interest on the Governmental Lender Note in the gross income of the recipient thereof for federal income tax purposes. The Borrower shall pay all necessary fees and expenses incurred with respect to such amendment. The Borrower, the Governmental Lender and, where applicable, the Funding Lender per written instructions from the Governmental Lender shall execute, deliver and, if applicable, the Borrower shall file of record, any and all documents and instruments, including without limitation, an amendment to the Regulatory Agreement, with a file-stamped copy to the Funding Lender, necessary to effectuate the intent of this Section 5.34, and the Borrower and the Governmental Lender hereby appoint the Funding Lender as their true and lawful attorney-in-fact to execute, deliver and, if applicable, file of record on behalf of the Borrower or the Governmental Lender, as is applicable, any such document or instrument (in such form as may be approved by and upon instruction of Tax Counsel) if either the Borrower or the Governmental Lender defaults in the performance of its obligation under this Section 5.34; provided, however, that the Funding Lender shall take no action under this Section 5.34 without first notifying the Borrower or the Governmental Lender, as is applicable, of its intention to take such action and providing the Borrower or the Governmental Lender, as is applicable, a reasonable opportunity to comply with the requirements of this Section 5.34. The Borrower irrevocably authorizes and directs the Fiscal Agent, the Funding Lender and any other agent designated by the Governmental Lender to make payment of such amounts from funds of the Borrower, if any, held by the Fiscal Agent or the Funding Lender, or any agent of the Governmental Lender or the Funding Lender. The Borrower further covenants and agrees that, pursuant to the requirements of Treasury Regulation Section 1.148-1(b), it (or any related person contemplated by such regulations) will not purchase interests in the portion of the Funding Loan evidenced by the Governmental Lender Note. Section 5.35 Payment of Rebate. (a) Arbitrage Rebate. The Borrower agrees to take all steps necessary to compute and pay any rebatable arbitrage relating to the portion of the Funding Loan evidenced by the Governmental Lender Note in accordance with Section 148(f) of the Code including: (i) Delivery of Documents and Money on Computation Dates. The Borrower will deliver to the Fiscal Agent, with a copy to the Funding Lender, within 55 days after each Computation Date: (A) with a copy to the Governmental Lender, a statement, signed by the Borrower, stating the Rebate Amount as of such Computation Date; (B) if such Computation Date is an Installment Computation Date, an amount that, together with any amount then held for the credit of the Rebate Fund, is equal to at least 90% of the Rebate Amount as of such Installment Computation Date, less the future value of any “previous rebate payments” made to the United States (as that term is used in Section 1.148-3(f)(1) of the Regulations), or (2) if such Computation Date is the final Computation Date, an amoun t that, together with any amount then held for the credit of the Rebate Fund, is equal to the Rebate Amount as of such final Computation Date, less the future value of any “previous rebate payments” made to the United States (as that term is used in Section 1.148-3(f)(1) of the Regulations); and Page 411 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 52 4933-7130-2287v5/024036-0105 (C) with a copy to the Governmental Lender, an Internal Revenue Service Form 8038-T properly signed and completed as of such Computation Date. (ii) Correction of Underpayments. If the Borrower shall discover or be notified as of any date that any payment paid to the United States Treasury pursuant to this Section 5.35 of an amount described in Section 5.35(a)(i)(A) or (B) above shall have failed to satisfy any requirement of Section 1.148-3 of the Regulations (whether or not such failure shall be due to any default by the Borrower, the Governmental Lender or the Funding Lender), the Borrower shall (1) pay to the Fiscal Agent (for deposit to the Rebate Fund) and cause the Fiscal Agent to pay to the United States Treasury from the Rebate Fund the underpayment of the Rebate Amount, together with any penalty and/or interest due, as specified in Section 1.148-3(h) of the Regulations, within 175 days after any discovery or notice and (2) deliver to the Fiscal Agent an Internal Reven ue Service Form 8038-T completed as of such date. If such underpayment of the Rebate Amount, together with any penalty and/or interest due, is not paid to the United States Treasury in the amount and manner and by the time specified in the Regulations, the Borrower shall take such steps as are necessary to prevent the Governmental Lender Note from becoming arbitrage bonds within the meaning of Section 148 of the Code. (iii) Records. The Borrower shall retain all of its accounting records relating to the funds established under this Borrower Loan Agreement and all calculations made in preparing the statements described in this Section 5.35 for at least six years after the later of the final maturity of the Governmental Lender Note or the date the Funding Loan is retired in full. (iv) Costs. The Borrower agrees to pay all of the fees and expenses of a nationally recognized Tax Counsel, the Rebate Analyst a certified public accountant and any other necessary consultant employed by the Borrower or the Funding Lender in connection with computing the Rebate Amount. (v) No Diversion of Rebatable Arbitrage. The Borrower will not indirectly pay any amount otherwise payable to the federal government pursuant to the foregoing requirements to any person other than the federal government by entering into any investment arrangement with respect to the Gross Proceeds of the portion of the Funding Loan evidenced by the Governmental Lender Note which is not purchased at Fair Market Value or includes terms that the Borrower would not have included if such portion of the Funding Loan were not subject to Section 148(f) of the Code. (vi) Modification of Requirements. If at any time during the term of this Borrower Loan Agreement, the Governmental Lender, the Funding Lender or the Borrower desires to take any action which would otherwise be prohibited by the terms of this Section 5.35, such Person shall be permitted to take such action if it shall first obtain and provide to the other Persons named herein a Tax Counsel No Adverse Effect Opinion (as defined in the Funding Loan Agreement) with respect to such action. (b) Rebate Fund. The Borrower acknowledges that the Fiscal Agent shall establish and hold a separate fund designated as the “Rebate Fund” under the Funding Loan Agreement and deposit or transfer to the credit of the Rebate Fund each amount delivered to the Fiscal Agent by the Borrower for deposit thereto and each amount directed by the Borrower to be transferred thereto, as further described in Section 7.8 of the Funding Loan Agreement. Page 412 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 53 4933-7130-2287v5/024036-0105 Section 5.36 Covenants under Funding Loan Agreement. The Borrower will fully and faithfully perform all the duties and obligations which the Governmental Lender has covenanted and agreed in the Funding Loan Agreement to cause the Borrower to perform and any duties and obligations which the Borrower is required in the Funding Loan Agreement to perform. The foregoing will not apply to any duty or undertaking of the Governmental Lender that by its nature cannot be delegated or assigned. Section 5.37 Continuing Disclosure Agreement. The Borrower and the Funding Lender shall enter into the Continuing Disclosure Agreement to provide for the continuing disclosure of information about the Funding Loan, the Borrower and other matters as specifically provided for in such agreement. ARTICLE VI NEGATIVE COVENANTS Borrower hereby covenants and agrees as follows, which covenants shall remain in effect so long as any Borrower Payment Obligation or other obligation of Borrower under any of the other Borrower Loan Documents or the Funding Loan Documents remains outstanding or unperformed. Borrower covenants and agrees that it will not, directly or indirectly: Section 6.1 Management Agreement. Without first obtaining the Funding Lender’s prior Written Consent, enter into the Management Agreement, and thereafter the Borrow er shall not, without the Funding Lender’s prior Written Consent (which consent shall not be unreasonably withheld) and subject to the Regulatory Agreement: (i) surrender, terminate or cancel the Management Agreement or otherwise replace the Manager or enter into any other management agreement; (ii) reduce or consent to the reduction of the term of the Management Agreement; (iii) increase or consent to the increase of the amount of any charges under the Management Agreement; (iv) otherwise modify, change, supplement, alter or amend in any material respect, or waive or release in any material respect any of its rights and remedies under, the Management Agreement; or (v) suffer or permit the occurrence and continuance of a default beyond any applicable cure p eriod under the Management Agreement (or any successor management agreement) if such default permits the Manager to terminate the Management Agreement (or such successor management agreement). Section 6.2 Dissolution. Dissolve or liquidate, in whole or in part, merge with or consolidate into another Person. Section 6.3 Change in Business or Operation of Property. Enter into any line of business other than the ownership and operation of the Project, or make any material change in the scope or nature of its business objectives, purposes or operations, or undertake or participate in activities other than the continuance of its present business and activities incidental or related thereto or otherwise cease to operate the Project as a multi-family property or terminate such business for any reason whatsoever (other than temporary cessation in connection with construction or rehabilitation, as appropriate, of the Project). Section 6.4 Debt Cancellation. Cancel or otherwise forgive or release any claim or debt owed to the Borrower by a Person, except for adequate consideration or in the ordinary course of the Borrower’s business in its reasonable judgment. Page 413 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 54 4933-7130-2287v5/024036-0105 Section 6.5 Assets. Purchase or own any real property or personal property incidental thereto other than the Project. Section 6.6 Transfers. Make, suffer or permit the occurrence of any Transfer other than a transfer permitted under the Security Instrument and Section 10 of the Regulatory Agreement, nor transfer any material License required for the operation of the Project. Section 6.7 Debt. Other than as expressly approved in writing by the Funding Lender, create, incur or assume any indebtedness for borrowed money (including subordinate debt) whether unsecured or secured by all or any portion of the Project or interest therein or in the Borrower or any partner thereof (including subordinate debt) other than (i) the Borrower Payment Obligations, (ii) the Subordinate Debt, (iii) secured indebtedness incurred pursuant to or permitted by the Borrower Loan Documents and the Funding Loan Documents, (iv) trade payables incurred in the ordinary course of business and (iv) deferred developer fees. Section 6.8 Assignment of Rights. Without the Funding Lender’s prior Written Consent, attempt to assign the Borrower’s rights or interest under any Borrower Loan Document or Funding Loan Document in contravention of any Borrower Loan Document or Funding Loan Document. Section 6.9 Principal Place of Business. Change its principal place of business without providing 30 days’ prior Written Notice of the change to the Funding Lender and the Servicer. Section 6.10 Partnership Agreement. Without the Funding Lender’s prior Written Consent (which consent shall not be unreasonably withheld) surrender, terminate, cancel, modify, change, supplement, alter or amend in any material respect, or waive or release in any material respect (except as allowed by the Security Instrument), any of its rights or remedies under the Partnership Agreement if such action would materially impact the terms and conditions of the Equity Contributions; provided, however, the consent of Funding Lender is not required for an amendment of the Partnership Agreement resulting solely from the “Permitted Transfer” of partnership interests of Borrower as defined in and permitted by the Security Instrument. Section 6.11 ERISA. Maintain, sponsor, contribute to or become obligated to contribute to, or suffer or permit any ERISA Affiliate of the Borrower to, maintain, sponsor, contribute to or become obligated to contribute to, any Plan, or permit the assets of the Borrower to become “plan assets,” whether by operation of law or under regulations promulgated under ERISA. Section 6.12 No Hedging Arrangements. Without the prior Written Consent of the Funding Lender or unless otherwise required by this Borrower Loan Agreement, the Borrower will not enter into or guarantee, provide security for or otherwise undertake any form of contractual obligation with respect to any interest rate swap, interest rate cap or other arrangement that has the effect of an interest rate swap or interest rate cap or that otherwise (directly or indirectly, derivatively or synthetically) hedges interest rate risk associated with being a debtor of variable rate debt or any agreement or other arrangement to enter into any of the above on a future date or after the occurrence of one or more events in the future. Section 6.13 Loans and Investments; Distributions; Related Party Payments. (a) Without the prior Written Consent of Funding Lender in each instance, Borrower shall not (i) lend money, make investments, or extend credit, other than in the ordinary course Page 414 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 55 4933-7130-2287v5/024036-0105 of its business as presently conducted; or (ii) except as set forth in the Partnership Agreement, repurchase, redeem or otherwise acquire any interest in Borrower, any Borrower Affiliate or any other Person owning an interest, directly or indirectly, in Borrower, or make any distribution, in cash or in kind, in respect of interests in Borrower, any Borrower Affiliate or any other Person owning an interest, directly or indirectly, in Borrower (except to the extent permitted by Section 5.27 hereof and subject to the limitations set forth in the Security Instrument). (b) Disbursements for fees and expenses of any Borrower Affiliate and developer fees (however characterized) will only be paid to the extent that such fee or expense bears a proportionate relationship to the percentage of completion o f the construction or rehabilitation, as the case may be, of the Improvements, as determined by the Construction Consultant, and only after deducting the applicable Retainage. Except as otherwise permitted hereunder or by the Funding Lender, no Disbursements for the Developer Fee or any “deferred developer fees” shall be made prior to the Conversion Date other than in accordance with the Approved Developer Fee Schedule. Section 6.14 Amendment of Related Documents or CC&R’s. Without the prior Written Consent of Funding Lender in each instance, except as provided herein or in the Construction Funding Agreement, Borrower shall not enter into or consent to any amendment, termination, modification, or other alteration of any of the Related Documents or any of the CC&R’s (including, without limitation, those contained in this Borrower Loan Agreement, any Architect’s Agreement or Engineer’s Contract, any Construction Contract, and any Management Agreement, but excluding the Partnership Agreement, which is covered by Section 6.10), or any assignment, transfer, pledge or hypothecation of any of its rights thereunder, if any. Section 6.15 Personal Property. Borrower shall not install materials, personal property, equipment or fixtures subject to any security agreement or other agreement or con tract wherein the right is reserved to any Person other than Borrower to remove or repossess any such materials, equipment or fixtures, or whereby title to any of the same is not completely vested in Borrower at the time of installation, without Funding Lender’s prior Written Consent; provided, however, that this Section 6.15 shall not apply to laundry equipment or other equipment that is owned by a third -party vendor and commercial tenants. Section 6.16 Fiscal Year. Without Funding Lender’s Written Consent, which shall not be unreasonably withheld, neither Borrower nor General Partner shall change the times of commencement or termination of its fiscal year or other accounting periods, or change its methods of accounting, other than to conform to GAAP. Section 6.17 Publicity. Neither Borrower nor General Partner shall issue any publicity release or other communication to any print, broadcast or on -line media, post any sign or in any other way identify Funding Lender or any of its Affiliates as the source of the financing provided fo r herein, without the prior written approval of Funding Lender in each instance (provided that nothing herein shall prevent Borrower or General Partner from identifying Funding Lender or its Affiliates as the source of such financing to the extent that Borrower or General Partner are required to do so by disclosure requirements applicable to publicly held companies). Borrower and General Partner agree that no sign shall be posted on the Project in connection with the construction or rehabilitation of the Improvements unless such sign identifies Citigroup and its affiliates as the source of the financing provided for herein or Funding Lender consents to not being identified on any such sign. Page 415 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 56 4933-7130-2287v5/024036-0105 Section 6.18 Subordinate Loan Documents. Without Funding Lender’s prior written consent, Borrower will not surrender, terminate, cancel, modify, change, supplement, alter, amend, waive, release, assign, transfer, pledge or hypothecate any of its rights or remedies under the Subordinate Loan Documents. ARTICLE VII RESERVED ARTICLE VIII DEFAULTS Section 8.1 Events of Default. Each of the following events shall constitute an “Event of Default” under this Borrower Loan Agreement: (a) failure by the Borrower to pay any Borrower Loan Payment in the manner and on the date such payment is due in accordance with the terms and provisions of the Borrower Note, or the failure by the Borrower to pay any Additional Borrower Payment on the date such payment is due in accordance with the terms and provisions of the Borrower Note, the Security Instrument, this Borrower Loan Agreement or any other Borrower Loan Document; (b) failure by or on behalf of the Borrower to pay when due any amount (other than as provided in subsection (a) above or elsewhere in this Section 8.1) required to be paid by the Borrower under this Borrower Loan Agreement, the Borrower Note, the Security Instrument or any of the other Borrower Loan Documents or Funding Loan Documents, including a failure to repay any amounts that have been previously paid but are recovered, attached or enjoined pursuant to any insolvency, receivership, liquidation or similar proceedings, which default remains uncured for a period of five (5) days after Written Notice thereof shall have been given to the Borrower; (c) an Event of Default, as defined in the Borrower Note, the Security Instrument or any other Borrower Loan Document, occurs (or to the extent an “Event of Default” is not defined in any other Borrower Loan Document, any default or breach by the Borrower or any Guarantor of its obligations, covenants, representations or warranties under such Borrower Loan Document occurs and any applicable notice and/or cure period has expired); (d) any representation or warranty made by any of the Borrower, the Guarantor or the General Partner in any Borrower Loan Document or Funding Loan Document to which it is a party, or in any report, certificate, financial statement or other instrument, agreemen t or document furnished by the Borrower, the Guarantor or the General Partner in connection with any Borrower Loan Document or Funding Loan Document, is made shall be false or misleading in any material respect as of the Closing Date; (e) the Borrower shall make a general assignment for the benefit of creditors, or shall generally not be paying its debts as they become due; (f) the Borrower Controlling Entity shall make a general assignment for the benefit of creditors, shall generally not be paying its debts as they become due, or an Act of Bankruptcy with respect to the Borrower Controlling Entity shall occur, unless in all cases the Borrower Controlling Page 416 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 57 4933-7130-2287v5/024036-0105 Entity is replaced with a substitute Borrower Controlling Entity that satisfies the requirements of Section 21 of the Security Instrument; which, in the case of a nonprofit Borrower Controlling Entity, may be replaced within sixty (60) days of such event with another nonprofit Borrower Controlling Entity acceptable to the Funding Lender, in which case no Event of Default shall be deemed to have occurred; (g) any portion of Borrower Deferred Equity to be made by Equity Investor and required for (i) completion of the construction or rehabilitation, as the case may be, of the Improvements, (ii) the satisfaction of the Conditions of Conversion or (iii) the operation of the Improvements, is not received in accordance with the Partnership Agreement (and subject to the terms and conditions as set forth therein) after the expiration of all applicable notice and cure periods; (h) the failure by Borrower or any ERISA Affiliate of Borrower to comply in all respects with ERISA, or the occurrence of any other event (with respect to the failure of Borrower or any ERISA Affiliate to pay any amount required to be paid under ERISA or with r espect to the termination of, or withdrawal of Borrower or any ERISA Affiliate from, any employee benefit or welfare plan subject to ERISA) the effect of which is to impose upon Borrower (after giving effect to the tax consequences thereof) for the payment of any amount in excess of Fifty Thousand Dollars ($50,000); (i) a Bankruptcy Event shall occur with respect to Borrower, any General Partner or Guarantor, or there shall be a change in the assets, liabilities or financial position of any such Person which has a material adverse effect upon the ability of such Person to perform such Person’s obligations under this Borrower Loan Agreement, any other Borrower Loan Document or any Related Document, provided that any such Bankruptcy Event with respect to a Guarantor shall not constitute an Event of Default: (i) if such Bankruptcy Event occurs on or after the date upon which the Guaranty terminates in accordance with its terms (or the date upon which all of the Guaranties have terminated in accordance with their terms, if more than one Guaranty was executed by such Guarantor), or (ii) if such Bankruptcy Event occurs prior to the date upon which the Guaranty terminates in accordance with its terms (or the date upon which all of the Guaranties have terminated in accordance with their terms, if more than one Guaranty was executed by such Guarantor) and the Borrower replaces such Guarantor with a person or entity satisfying the Funding Lender’s mortgage credit standards for principals and acceptable to the Funding Lender in its sole and absolute discretion within thirty (30) days after notice thereof from the Funding Lender; (j) all or any part of the property of Borrower is attached, levied upon or otherwise seized by legal process, and such attachment, levy or seizure is not quashed, stayed or released: (i) prior to completion of the construction or rehabilitation, as the case may be, of the Improvements, within ten (10) days of the date thereof or (ii) after completion of the construction or rehabilitation, as the case may be, of the Improvements, within thirty (30) days of the date thereof; (k) subject to Section 10.16 hereof, Borrower fails to pay when due any monetary obligation (other than pursuant to this Borrower Loan Agreement) to any Person in excess of $100,000, and such failure continues beyond the expiration of any applicable cure or grace periods; (l) any material litigation or proceeding is commenced before any Governmental Authority against or affecting Borrower, any General Partner or Guarantor, or property of Borrowe r, any General Partner or Guarantor, or any part thereof, and such litigation or proceeding is not defended diligently and in good faith by Borrower, any General Partner or Guarantor, as applicable, provided Page 417 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 58 4933-7130-2287v5/024036-0105 that any such material litigation or proceeding against a Guarantor shall not constitute an Event of Default: (i) if such material litigation is commenced on or after the date upon which the Guaranty terminates in accordance with its terms (or the date upon which all of the Guaranties have terminated in accordance with their terms, if more than one Guaranty was executed by such Guarantor), or (ii) if such material litigation or proceeding is commenced prior to the date upon which the Guaranty terminates in accordance with its terms (or the date upon whi ch all of the Guaranties have terminated in accordance with their terms, if more than one Guaranty was executed by such Guarantor) and the Borrower replaces such Guarantor with a person or entity satisfying the Funding Lender’s mortgage credit standards for principals and acceptable to the Funding Lender in its sole and absolute discretion within thirty (30) days after notice thereof from the Funding Lender; (m) a final judgment or decree for monetary damages in excess of $50,000 or a monetary fine or penalty (not subject to appeal or as to which the time for appeal has expired) is entered against Borrower, any General Partner or Guarantor by any Governmental Authority, and such judgment, decree, fine or penalty is not paid and discharged or stayed (i) prior to completion of the construction or rehabilitation, as the case may be, of the Improvements, within ten (10) days after entry thereof or (ii) after completion of the construction or rehabilitation, as the case may be, of the Improvements, within thirty (30) days after entry thereof (or such longer period as may be permitted for payment by the terms of such judgment, fine or penalty) , provided that any such judgment, decree, fine or penalty against a Guarantor shall not constitute an Event of Default: (i) if such judgment, decree, fine or penalty is entered on or after the date upon which the Guaranty terminates in accordance with its terms (or the date upon which all of the Guaranties have terminated in accordance with their terms, if more than one Guaranty was executed by such Guarantor), or (ii) if such judgment, decree, fine or penalty is entered prior to the date upon which the Guaranty terminates in accordance with its terms (or the date upon which all of the Guaranties have terminated in accordance with their terms, if more than one Guaranty was executed by such Guarantor) and the Borrower replaces such Guarantor with a person or entity satisfying the Funding Lender’s mortgage credit standards for principals and acceptable to the Funding Lender in its sole and absolute discretion within thirty (30) days after notice thereof from the Funding Lender; (n) a final, un-appealable and uninsured money judgment or judgments, in favor of any Person other than a Governmental Authority, in the aggregate sum of $50,000 or more shall be rendered against Borrower, any General Partner or Guarantor, or against any of their respective assets, that is not paid, superseded or stayed (i) prior to completion of the construction or rehabilitation, as the case may be, of the Improvements, within ten (10) days after entry thereof or (ii) after completion of the construction or rehabilitation, as the case may be, of the Improvements, within thirty (30) days after entry thereof (or such longer period as may be permitted for payment by the terms of such judgment); or any levy of execution, writ or warrant of attachment, or similar process, is entered or filed against Borrower, any General Partner or Guarantor, or against any of their respective assets (that is likely to have a material adverse effect upon the ability of Borrower, any General Partner or Guarantor to perform their respective obligations under this Borrower Loan Agreement, any other Borrower Loan Document or any Related Document), and such judgment, writ, warrant or process s hall remain unsatisfied, unsettled, unvacated, unhanded and unstayed (i) prior to completion of the construction or rehabilitation, as the case may be, of the Improvements, for a period of ten (10) days or (ii) after completion of the construction or rehabilitation, as the case may be, of the Improvements, for a period of thirty (30) days, or in any event later than five (5) Business Days prior to the date of any proposed sale thereunder, provided that any such judgment, levy, writ, warrant, attachment or s imilar process against a Guarantor shall not constitute an Event of Default: (i) if such judgment, levy, writ, warrant, attachment or similar process is entered on or after the date upon which the Guaranty terminates in Page 418 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 59 4933-7130-2287v5/024036-0105 accordance with its terms (or the date upon which all of the Guaranties have terminated in accordance with their terms, if more than one Guaranty was executed by such Guarantor), or (ii) if such judgment, levy, writ, warrant, attachment or similar process is entered prior to the date upon which the Guaranty terminates in accordance with its terms (or the date upon which all of the Guaranties have terminated in accordance with their terms, if more than one Guaranty was executed by such Guarantor) and the Borrower replaces such Guarantor with a person or entity satisfying the Funding Lender’s mortgage credit standards for principals and acceptable to the Funding Lender in its sole and absolute discretion within thirty (30) days after notice thereof from the Funding Lender; (o) the inability of Borrower to satisfy any condition for the receipt of a Disbursement hereunder (other than an Event of Default specifically addressed in this Section 8.1) and failure to resolve the situation to the satisfaction of Funding Lender for a period in excess of thirt y (30) days after Written Notice from Funding Lender, subject to Force Majeure; (p) the construction or rehabilitation of the Improvements is abandoned or halted prior to completion for any period of thirty (30) consecutive days, subject to Force Majeure; (q) Borrower shall fail to keep in force and effect any material permit, license, consent or approval required under this Borrower Loan Agreement, or any Governmental Authority with jurisdiction over the Mortgaged Property or the Project orders or requires that co nstruction or rehabilitation of the Improvements be stopped, in whole or in part, or that any required approval, license or permit be withdrawn or suspended, and the order, requirement, withdrawal or suspension remains in effect for a period of thirty (30) days, subject to Force Majeure; (r) failure by the Borrower to Substantially Complete the construction or rehabilitation, as the case may be, of the Improvements in accordance with this Borrower Loan Agreement on or prior to the Substantial Completion Date, subject to Force Majeure; (s) failure by Borrower to complete the construction or rehabilitation, as the case may be, of the Improvements in accordance with this Borrower Loan Agreement on or prior to the Completion Date, subject to Force Majeure; (t) failure by Borrower to satisfy the Conditions to Conversion on or before the Outside Conversion Date; (u) [failure by any Subordinate Lender to disburse the proceeds of its Subordinate Loan in approximately such amounts and at approximately such times as set forth in the Cost Breakdown and in the Subordinate Loan Documents;] (v) an “Event of Default” or “Default” (as defined in the applicable agreement) shall occur under any of the Subordinate Loan Documents, after the expiration of all applicable notice and cure periods; (w) [Borrower fails to obtain all grading, foundation, building and all other construction permits, licenses and authorizations from all applicable Governmental Authorities or third parties necessary for the completion of the construction or rehabilitation, as th e case may be, of the Improvements, and the operation of, and access to, the Project, within [____] days after the Closing Date; ]or Page 419 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 60 4933-7130-2287v5/024036-0105 (x) any failure by the Borrower to perform or comply with any of its obligations under this Borrower Loan Agreement (other than those specified in this Section 8.1), as and when required, that continues for a period of thirty (30) days after written notice of such failure by Funding Lender or the Servicer on its behalf to the Borrower ; provided, however, if such failure is susceptible of cure but cannot reasonably be cured within such thirty (30) day period, and the Borrower shall have commenced to cure such failure within such thirty (30) day period and thereafter diligently and expeditiously proceeds to cure the same, such thirty (30) day period shall be extended for an additional period of time as is reasonably necessary for the Borrower in the exercise of due diligence to cure such failure, such additional period not to exceed sixty (60) days. However, no such notice or grace period shall apply to the extent such failure could, in the Funding Lender’s judgment, absent immediate exercise by the Funding Lender of a right or remedy under this Borrower Loan Agreement, result in harm to the Funding Lender, impairment of the Borrower Note or this Borrower Loan Agreement or any security given under any other Borrower Loan Document. Section 8.2 Remedies. Section 8.2.1 Acceleration. Upon the occurrence of an Event of Default (other than an Event of Default described in paragraph (e), (f) or (i) of Section 8.1) and at any time and from time to time thereafter, as long as such Event of Default continues to exist, in addition to any other rights or remedies available to the Governmental Lender pursuant to the Borrower Loan Documents or at law or in equity, the Funding Lender may, take such action , without notice or demand, as the Funding Lender deems advisable to protect and enforce its rights against the Borrower and in and to the Project, including declaring the Borrower Payment Obligations to be immediately due and payable (including, without limitation, the principal of, Prepayment Premium, if any, and interest on and all other amounts due on the Borrower Note to be immediately due and payable), without notice or demand, and apply such payment of the Borrower Payment Obligations in any manner and in any order determined by Funding Lender, in Funding Lender’s sole and absolute discretion; and upon any Event of Default described in paragraph (e), (f) or (i) of Section 8.1, the Borrower Payment Obligations shall become immediately due and payable, without notice or demand, and the Borrower hereby expressly waives any such notice or demand, anything contained in any Borrower Loan Document to the contrary notwithstanding. Notwithstanding anything herein to the contrary, enforcement of remedies hereunder and under the Funding Loan Agreement shall be controlled by the Funding Lender. Section 8.2.2 Remedies Cumulative. Upon the occurrence of an Event of Default, all or any one or more of the rights, powers, privileges and other remedie s available to the Funding Lender against the Borrower under the Borrower Loan Documents or at law or in equity may be exercised by the Funding Lender or the Fiscal Agent, at any time and from time to time, whether or not all or any of the Borrower Payment Obligations shall be declared due and payable, and whether or not the Funding Lender shall have commenced any foreclosure proceeding or other action for the enforcement of its rights and remedies under any of the Borrower Loan Documents. Any such actions taken by the Funding Lender shall be cumulative and concurrent and may be pursued independently, singly, successively, together or otherwise, at such time and in such order as the Funding Lender may determine in its sole discretion, to the fullest extent permitted by law, without impairing or otherwise affecting the other rights and remedies of the Funding Lender permitted by law, equity or contract or as set forth in the Borrower Loan Documents. Without limiting the generality of the foregoing, the Borrower agrees that if an Event of Default is continuing, all Liens and other rights, remedies or privileges provided to the Funding Lender shall remain in full force and effect until they have exhausted all of its remedies, the Security Instrument has been fo reclosed, the Project has been sold and/or otherwise realized upon satisfaction of the Borrower Payment Obligations or the Borrower Page 420 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 61 4933-7130-2287v5/024036-0105 Payment Obligations has been paid in full. To the extent permitted by applicable law, nothing contained in any Borrower Loan Document shall be construed as requiring the Funding Lender to resort to any portion of the Project for the satisfaction of any of the Borrower Payment Obligations in preference or priority to any other portion, and the Funding Lender may seek satisfacti on out of the entire Project or any part thereof, in its absolute discretion. Any such notices provided to Borrower in connection with an Event of Default shall be provided to the Equity Investor. Notwithstanding any provision herein to the contrary, the Governmental Lender, the Fiscal Agent and the Funding Lender agree that any cure of any default made or tendered by the Equity Investor and/or the Special Limited Partner under the Borrower Loan Documents or the Funding Loan Documents shall be deemed to be a cure by the Borrower and shall be accepted or rejected on the same basis as if made or tendered by the Borrower. Section 8.2.3 Delay. No delay or omission to exercise any remedy, right, power accruing upon an Event of Default, or the granting of any indulgence or co mpromise by the Funding Lender or the Fiscal Agent shall impair any such remedy, right or power hereunder or be construed as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be deemed expedient. A waiver of one Potential Default or Event of Default shall not be construed to be a waiver of any subsequent Potential Default or Event of Default or to impair any remedy, right or power consequent thereon. Notwithstanding any other provision of this Bor rower Loan Agreement, the Funding Lender and the Fiscal Agent reserve the right to seek a deficiency judgment or preserve a deficiency claim, in connection with the foreclosure of the Security Instrument to the extent necessary to foreclose on the Project, the Rents, the funds or any other collateral. Section 8.2.4 Set Off; Waiver of Set Off. Upon the occurrence of an Event of Default, Funding Lender may, at any time and from time to time, without notice to Borrower or any other Person (any such notice being expressly waived), set off and appropriate and apply (against and on account of any obligations and liabilities of the Borrower to the Funding Lender or the Fiscal Agent arising under or connected with this Borrower Loan Agreement and the other Borrower Loan Documents and the Funding Loan Documents, irrespective of whether or not the Funding Lender shall have made any demand therefor, and although such obligations and liabilities may be contingent or unmatured), and the Borrower hereby grants to the Funding Lender, as security for the Borrower Payment Obligations, a security interest in, any and all deposits (general or special, including but not limited to Debt evidenced by certificates of deposit, whether matured or unmatured, but not including trust accounts) and any other Debt at any time held or owing by the Funding Lender to or for the credit or the account of the Borrower. Section 8.2.5 Assumption of Obligations. In the event that the Funding Lender or its assignee or designee shall become the legal or beneficial owner of the Project by foreclosure or deed in lieu of foreclosure, such party shall succeed to the rights and the obligations of the Borrower under this Borrower Loan Agreement, the Borrower Note, the Regulatory Agreement, and any other Borrower Loan Documents and Funding Loan Documents to which the Borrower is a party. Such assumption shall be effective from and after the effective date of such acquisition and shall be made with the benefit of the limitations of liability set forth therein and without any liability for the prior acts of the Borrower. Section 8.2.6 Accounts Receivable. Upon the occurrence of an Event of Default, Funding Lender shall have the right, to the extent permitted by law, to impound and take possession of books, records, notes and other documents evidencing Borrower’s accounts, accounts receivable Page 421 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 62 4933-7130-2287v5/024036-0105 and other claims for payment of money, arising in connection with the Project, and to make direct collections on such accounts, accounts receivable and claims for the benefit of Funding Lender. Section 8.2.7 Defaults under Other Documents. Funding Lender shall have the right to cure any default under any of the Related Documents and the Subordinate Loan Documents, but shall have no obligation to do so. Section 8.2.8 Abatement of Disbursements. Notwithstanding any provision to the contrary herein or any of the other Borrower Loan Documents or the Funding Loan Documents, Funding Lender’s obligation to make further Disbursements shall abate (i) during the continuance of any Potential Default, (ii) after any disclosure to Funding Lender of any fact or circumstance that, absent such disclosure, would cause any representation or warranty of Borrower to fail to be true and correct in all material respects, unless and until Funding Lender elects to permit further Disbursements notwithstanding such event or circumstance; and (iii) upon the occurrence of any Event of Default. Section 8.2.9 Completion of Improvements. Upon the occurrence of any Event of Default, Funding Lender shall have the right to cause an independent contractor selected by Funding Lender to enter into possession of the Project and to perform any and all work and labor necessary for the completion of the Project substantially in accordance with the Plans and Specifications, if any, and to perform Borrower’s obligations under this Borrower Loan Agreement. All sums expended by Funding Lender for such purposes shall be deemed to have been disbursed to and borrowed by Borrower and shall be secured by the Security Documents. Section 8.2.10 Right to Directly Enforce. Notwithstanding any other provision hereof to the contrary, the Funding Lender shall have the right to dir ectly enforce all rights and remedies hereunder with or without involvement of the Governmental Lender or the Fiscal Agent, provided that only the Governmental Lender may enforce the Unassigned Rights. In the event that any of the provisions set forth in this Section 8.2.10 are inconsistent with the covenants, terms and conditions of the Security Instrument, the covenants, terms and conditions of the Security Instrument shall prevail. Section 8.2.11 Power of Attorney. Effective upon the occurrence of an Event of Default, and continuing until and unless such Event of Default is cured or waived, Borrower hereby constitutes and appoints Funding Lender, or an independent contractor selected by Funding Lender, as its true and lawful attorney-in-fact with full power of substitution, for the purposes of completion of the Project and performance of Borrower’s obligations under this Borrower Loan Agreement in the name of Borrower, and hereby empowers said attorney-in-fact to do any or all of the following upon the occurrence and continuation of an Event of Default (it being understood and agreed that said power of attorney shall be deemed to be a power coupled with an interest which cannot be revoked until full payment and performance of all obligations under this Borrower Loan Agreement and the other Borrower Loan Documents and the Funding Loan Documents): (a) to use any of the funds of Borrower or General Partner, including any balance of the Borrower Loan, as applicable, and any funds which may be held by Funding Lender for Borrower (including all funds in all deposit accounts in which Borrower has granted to Funding Lender a security interest), for the purpose of effecting completion of the construction or rehabilitation, as the case may be, of the Improvements, in the manner called for by the Plans and Specifications; Page 422 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 63 4933-7130-2287v5/024036-0105 (b) to make such additions, changes and corrections in the Plans and Specifications as shall be necessary or desirable to complete the Project in substantially the manner contemplated by the Plans and Specifications; (c) to employ any contractors, subcontractors, agents, architects and inspectors required for said purposes; (d) to employ attorneys to defend against attempts to interfere with the exercise of power granted hereby; (e) to pay, settle or compromise all existing bills and claims which are or may be liens against the Project or the Improvements, or may be necessary or desirable for the completion of the construction or rehabilitation, as the case may be, of the Improvements, or clearance of objections to or encumbrances on title; (f) to execute all applications and certificates in the name of Borrower, which may be required by any other construction contract; (g) to prosecute and defend all actions or proceedings in connection with the Project and to take such action, require such performance and do any and every other act as is deemed necessary with respect to the completion of the construction or rehabilitation, as the case may be, of the Improvements, which Borrower might do on its own behalf; (h) to let new or additional contracts to the extent not prohibited by their existing contracts; (i) to employ watchmen and erect security fences to protect the Project from injury; and (j) to take such action and require such performance as it deems necessary under any of the bonds or insurance policies to be furnished hereunder, to make settlements and compromises with the sureties or insurers thereunder, and in connection therewith to execute instruments of release and satisfaction. It is the intention of the parties hereto that upon the occurrence and continuance of an Event of Default, rights and remedies may be pursued pursuant to the terms of the Borrower Loan Documents and the Funding Loan Documents. The parties hereto acknowledge that, among the possible outcomes to the pursuit of such remedies, is the situation where the Funding Lender assignees or designees become the owner of the Project and assume the obligations identified above, and the Borrower Note, the Borrower Loan and the other Borrower Loan Documents and Funding Loan Documents remain outstanding. ARTICLE IX SPECIAL PROVISIONS Section 9.1 Sale of Note and Secondary Market Transaction. Section 9.1.1 Cooperation. Subject to the restrictions of Section 2.4 of the Funding Loan Agreement, at the Funding Lender’s or the Servicer’s request (to the extent not already required Page 423 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 64 4933-7130-2287v5/024036-0105 to be provided by the Borrower under this Borrower Loan Agreement), the Borrower shall use reasonable efforts to satisfy the market standards to which the Funding Lender or the Servicer customarily adheres or which may be reasonably required in the marketplace or by the Funding Lender or the Servicer in connection with one or more sales or assignments of all or a portion of the Governmental Lender Note or participations therein or securitizations of single or multi-class securities (the “Securities”) secured by or evidencing ownership interests in all or a portion of the Governmental Lender Note (each such sale, assignment and/or securitization, a “Secondary Market Transaction”); provided that neither the Borrower nor the Governmental Lender shall incur any third party or other out-of-pocket costs and expenses in connection with a Secondary Market Transaction, including the costs associated with the delivery of any Provided Information or any opinion required in connection therewith, and all such costs shall be paid by the Funding Lender or the Servicer, and shall not materially modify Borrower’s rights or obligations. Without limiting the generality of the foregoing, the Borrower shall, so long as the Borrower Loan is still outstanding: (a) (i) provide such financial and other information with respect to the Borrower Loan, and with respect to the Project, the Borrower, the Manager, the contractor of the Project or the Borrower Controlling Entity, (ii) provide financial statements, audited, if available, relating to the Project with customary disclaimers for any forward looking statements or lack of audit, and (iii), at the expense of the Funding Lender or the Servicer, perform or permit or cause to be performed or permitted such site inspection, appraisals, surveys, market studies, environmental reviews and reports (Phase I’s and, if appropriate, Phase II’s), engineering reports and other due diligence investigations of the Project, as may be reasonably requested from time to time by the Funding Lender or the Servicer or the Rating Agencies or as may be necessary or appropriate in connection with a Secondary Market Transaction or Exchange Act requirements (the items provided to the Funding Lender o r the Servicer pursuant to this paragraph (a) being called the “Provided Information”), together, if customary, with appropriate verification of and/or consents (including, without limitation, auditor consents) to include or incorporate by reference the Provided Information in an offering document or otherwise provide the Provided Information to investors and potential investors or opinions of counsel of independent attorneys acceptable to the Funding Lender or the Servicer and the Rating Agencies; (b) make such representations and warranties as of the closing date of any Secondary Market Transaction with respect to the Project, the Borrower, the Borrower Loan Documents and the Funding Loan Documents reasonably acceptable to the Funding Lender or the Servicer, consistent with the facts covered by such representations and warranties as they exist on the date thereof; and (c) execute such amendments to the Borrower Loan Documents and the Funding Loan Documents to accommodate such Secondary Market Transaction so long as such amendment does not affect the material economic terms of the Borrower Loan Documents and the Funding Loan Documents and is not otherwise adverse to the Borrower in its reasonable discretion. Section 9.1.2 Use of Information. The Borrower understands that certain of the Provided Information and the required records may be included in disclosure documents in connection with a Secondary Market Transaction, including a prospectus or private placement memorandum (each, a “Secondary Market Disclosure Document”), or provided or made available to investors or prospective investors in the Securities, the Rating Agencies and service providers or other parties relating to the Secondary Market Transaction. In the event that the Secondary Market Disclosure Document is required to be revised, the Borrower shall cooperate, subject to Section 9.1.1(c) hereof, with the Funding Lender and the Servicer in updating the Provided Information or required records for Page 424 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 65 4933-7130-2287v5/024036-0105 inclusion or summary in the Secondary Market Disclosure Document or for other use reasonably required in connection with a Secondary Market Transaction by providing all current information pertaining to the Borrower and the Project necessary to keep the Secondary Market Disclosure Document accurate and complete in all material respects with respect to such matters. The Borrower hereby consents to any and all such disclosures of such information. The Borrower and the Funding Lender agree and acknowledge that the Governmental Lender undertakes no obligation hereunder or in the Funding Loan Agreement to participate in the preparation of, or to approve, any Secondary Market Disclosure Document. Section 9.1.3 Borrower Obligations Regarding Secondary Market Disclosure Documents. In connection with a Secondary Market Disclosure Document, the Borro wer shall provide, or in the case of a Borrower-engaged third party such as the Manager, cause it to provide, information reasonably requested by the Funding Lender pertaining to the Borrower, the Project or such third party (and portions of any other sect ions reasonably requested by the Funding Lender pertaining to the Borrower, the Project or the third party). The Borrower shall, if requested by the Funding Lender and the Servicer, certify in writing that the Borrower has carefully examined those portions of such Secondary Market Disclosure Document, pertaining to the Borrower, the Project or the Manager, and such portions (and portions of any other sections reasonably requested and pertaining to the Borrower, the Project or the Manager) do not contain an y untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; provided that the Borrower shall not be required to make any representations or warranties regarding any Provided Information obtained from a third party except with respect to information it provided to such parties. Furthermore, the Borrower hereby indemnifies the Funding Lender and the Servicer for any Liabili ties to which any such parties may become subject to the extent such Liabilities arise out of or are based upon the use of the Provided Information in a Secondary Market Disclosure Document. Section 9.1.4 Borrower Indemnity Regarding Filings. In connection with filings under the Exchange Act or the Securities Act, the Borrower shall (i) indemnify Funding Lender and the underwriter group for any securities (the “Underwriter Group”) for any Liabilities to which Funding Lender, the Servicer or the Underwriter Group may become subject insofar as the Liabilities arise out of or are based upon the omission or alleged omission to state in the Provided Information of a material fact required to be stated in the Provided Information in order to make th e statements in the Provided Information, in the light of the circumstances under which they were made not misleading and (ii) reimburse the Funding Lender, the Servicer, the Underwriter Group and other indemnified parties listed above for any legal or other expenses reasonably incurred by the Funding Lender, the Servicer or the Underwriter Group in connection with defending or investigating the Liabilities; provided that the Borrower shall not provide any indemnification regarding any Provided Information obtained from unrelated third parties except with respect to information it provided to such parties. Section 9.1.5 Indemnification Procedure. Promptly after receipt by an indemnified party under Sections 9.1.3 and 9.1.4 hereof of notice of the commencement of any acti on for which a claim for indemnification is to be made against the Borrower, such indemnified party shall notify the Borrower in writing of such commencement, but the omission to so notify the Borrower will not relieve the Borrower from any liability that it may have to any indemnified party hereunder except to the extent that failure to notify causes prejudice to the Borrower. In the event that any action is brought against any indemnified party, and it notifies the Borrower of the commencement thereof, t he Borrower will be entitled, jointly with any other indemnifying party, to participate therein and, to the extent that it (or Page 425 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 66 4933-7130-2287v5/024036-0105 they) may elect by Written Notice delivered to the indemnified party promptly after receiving the aforesaid notice of commencement, to assume the defense thereof with counsel selected by the Borrower and reasonably satisfactory to such indemnified party in its sole discretion. After notice from the Borrower to such indemnified party under this Section 9.1.5, the Borrower shall not be responsible for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. No indemnified party shall settle or compromise any claim for which the Borrower may be liable hereunder without the prior Written Consent of the Borrower. Section 9.1.6 Contribution. In order to provide for just and equitable contribution in circumstances in which the indemnity agreement provided for in Section 9.1.4 hereof is for any reason held to be unenforceable by an indemnified party in respect of any Liabilities (or action in respect thereof) referred to therein which would otherwise be indemnifiable under Section 9.1.4 hereof, the Borrower shall contribute to the amount paid or payabl e by the indemnified party as a result of such Liabilities (or action in respect thereof); provided, however, that no Person guilty of fraudulent misrepresentation (within the meaning of Section 10(f) of the Securities Act) shall be entitled to contribution from any Person not guilty of such fraudulent misrepresentation. In determining the amount of contribution to which the respective parties are entitled, the following factors shall be considered: (i) the indemnified parties and the Borrower’s relative knowledge and access to information concerning the matter with respect to which the claim was asserted; (ii) the opportunity to correct and prevent any statement or omission; and (iii) any other equitable considerations appropriate in the circumstances. The parties hereto hereby agree that it may not be equitable if the amount of such contribution were determined by pro rata or per capita allocation. ARTICLE X MISCELLANEOUS Section 10.1 Notices. All notices, consents, approvals and requests required or permitted hereunder or under any other Borrower Loan Document or Funding Loan Document (a “notice”) shall be deemed to be given and made when delivered by hand, recognized overnight delivery service, confirmed facsimile transmission (provided any telecopy or other electronic tra nsmission received by any party after 4:00 p.m., local time, as evidenced by the time shown on such transmission, shall be deemed to have been received the following Business Day), or five (5) calendar days after deposited in the United States mail, registered or certified, postage prepaid, with return receipt requested, addressed as follows: If to the Fiscal Agent: Wilmington Trust, National Association 650 Town Center Drive, Suite 800 Costa Mesa, California 92626 Attention: Corporate Trust Services If to the Governmental Lender: Chula Vista Housing Authority 276 Fourth Avenue Chula Vista, California 91910 Attention: Executive Director Phone: (619) 691-5263 Page 426 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 67 4933-7130-2287v5/024036-0105 If to the Borrower: MU2 Affordable LP, c/o Baldwin & Sons 20 Corporate Plaza Dr. Newport Beach, CA 92660 Re: Sol Vista Apartments Attention: Nick Lee Telephone: (619) 515-9115 with a copy to: Downs Pham & Kuei 235 Montgomery Street Suite 1169 San Francisco, CA 94104 Attention: Gary Downs Re: Sol Vista Apartments Telephone: (415) 202-6374 Email: gdowns@downspham.com and with a copy to: Downs Pham & Kuei 235 Montgomery Street Suite 1169 San Francisco, CA 94104 Attention: Irvin Reyes Re: Sol Vista Apartments Telephone: (415) 964-5111 Email: ireyes@downspham.com If to the Equity Investor: WNC Holding, LLC c/o WNC & Associates, Inc. 17782 Sky Park Circle Irvine, CA 92614 Attention: Melanie Wenk with a copy to: Holland & Knight LLP 10 St. James Avenue, 11th Floor Boston, Massachusetts 02116 Attention: Jonathan Sirois Email: jonathan.sirois@hklaw.com If to the Funding Lender: Citibank, N.A. 388 Greenwich Street, Trading 4th Floor New York, New York 10013 Attention: Transaction and Asset Management Group Re: Sol Vista Apartments Deal ID No. 50017216 Facsimile: (212) 723-8209 Page 427 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 68 4933-7130-2287v5/024036-0105 and to: Citibank, N.A. Transaction and Asset Management Group/Post Closing Citi Community Capital 3800 Citibank Center Tampa, Florida 33610 Re: Sol Vista Apartments Deal ID No. 50017216 prior to the Conversion Date, with a copy to: Citibank, N.A. 388 Greenwich Street, Trading 4th Floor New York, New York 10013 Attention: Account Specialist Re: Sol Vista Apartments Deal ID No. 50017216 Facsimile: (212) 723-8209 following the Conversion Date with a copy to: Citibank, N.A. c/o Berkadia Commercial Servicing Department 323 Norristown Road, Suite 300 Ambler, Pennsylvania 19002 Attention: Client Relations Manager Re: Sol Vista Apartments Deal ID No. 50017216 Facsimile: (215) 328-0305 and a copy of any notices of default sent to: Citibank, N.A. 388 Greenwich Street, 17th Floor New York, New York 10013 Attention: General Counsel’s Office Re: Sol Vista Apartments Deal ID No. 50017216 Facsimile: (212) 723-8939 Any party may change such party’s address for the notice or demands required under this Borrower Loan Agreement by providing written notice of such change of address to the other parties by written notice as provided herein. Section 10.2 Brokers and Financial Advisors. The Borrower hereby represents that it has dealt with no financial advisors, brokers, underwriters, placement agents, agents or finders in connection with the Borrower Loan, other than those disclosed to the Funding Lender and whose fees shall be paid by the Borrower pursuant to separate agreements. The Borrower and the Funding Lender shall indemnify and hold the other harmless from and against any and all claims, liabilities, costs and Page 428 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 69 4933-7130-2287v5/024036-0105 expenses of any kind in any way relating to or arising from a claim by any Person that such Person acted on behalf of the indemnifying party in connection with the transactions contemplated herein. The provisions of this Section 10.2 shall survive the expiration and termination of this Borrower Loan Agreement and the repayment of the Borrower Payment Obligations. Section 10.3 Survival. This Borrower Loan Agreement and all covenants, agreements, representations and warranties made herein and in the certificates delivered pursuant hereto shall survive the making by the Governmental Lender of the Borrower Loan and the execution and delivery to the Governmental Lender of the Borrower Note and the assignment of the Borrower Note to the Funding Lender, and shall continue in full force and effect so long as all or any of the Borrower Payment Obligations is unpaid. All the Borrower’s covenants and agreements in this Borrower Loan Agreement shall inure to the benefit of the respective legal representatives, successors and assigns of the Governmental Lender, the Fiscal Agent, the Funding Lender and the Servicer. Section 10.4 Preferences. To the extent the Borrower makes a payment to the Governmental Lender, the Fiscal Agent or the Servicer, or the Governmental Lender, the Fiscal Agent or the Servicer receives proceeds of any collateral, which is in whole or part subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such payment or proceeds received, the Borrower Payme nt Obligations or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment or proceeds had not been received by the Governmental Lender or the Servicer. In furtherance of the preceding sentence, the Governmental Lender shall have the continuing and exclusive right to apply or reverse and reapply any and all payments by the Borrower to any portion of the Borrower Payment Obligations. Section 10.5 Waiver of Notice. The Borrower shall not be entitled to any notices of any nature whatsoever from the Funding Lender, the Fiscal Agent or the Servicer except with respect to matters for which this Borrower Loan Agreement or any other Borrower Loan Document specifically and expressly provides for the giving of notice by the Funding Lender, the Fiscal Agent or the Servicer, as the case may be, to the Borrower and except with respect to matters for which the Borrower is not, pursuant to applicable Legal Requirements, permitted to waive the giving of notice. The Borrower hereby expressly waives the right to receive any notice from the Funding Lender, the Fiscal Agent or the Servicer, as the case may be, with respect to any matter for which no Borrower Loan Document specifically and expressly provides for the giving of notice by the Funding Lender, the Fiscal Agent or the Servicer to the Borrower. Section 10.6 Offsets, Counterclaims and Defenses. The Borrower hereby waives the right to assert a counterclaim, other than a compulsory counterclaim, in any action or proceeding brought against it by the Funding Lender, the Fiscal Agent or the Servicer with respect to a Borrower Loan Payment. Any assignee of Funding Lender’s, or Fiscal Agent’s interest in and to the Borrower Loan Documents or the Funding Loan Documents shall take the same free and clear of all offsets, counterclaims or defenses that are unrelated to the Borrower Loan Documents or the Funding Loan Documents which the Borrower may otherwise have against any assignor of such documents, and no such unrelated offset, counterclaim or defense shall be interposed or asserted by the Borrower in any action or proceeding brought by any such assignee upon such documents, and any such right to interpose or assert any such unrelated offset, counterclaim or defense in any such action or proceeding is hereby expressly waived by the Borrower. Page 429 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 70 4933-7130-2287v5/024036-0105 Section 10.7 Publicity. The Funding Lender and the Servicer (and any Affiliates of either party) shall have the right to issue press releases, advertisements and other promotional materials describing the Funding Lender’s or the Servicer’s participation in the making of the Borrower Loan or the Borrower Loan’s inclusion in any Secondary Market Transaction effectuated by the Funding Lender or the Servicer or one of its or their Affiliates. All news releases, publicity or adv ertising by the Borrower or Borrower Affiliates through any media intended to reach the general public, which refers to the Borrower Loan Documents or the Funding Loan Documents, the Borrower Loan, the Funding Lender or the Servicer in a Secondary Market Transaction, shall be subject to the prior Written Consent of the Funding Lender or the Servicer, as applicable. Section 10.8 Construction of Documents. The parties hereto acknowledge that they were represented by counsel in connection with the negotiation and drafting of the Borrower Loan Documents and the Funding Loan Documents and that the Borrower Loan Documents and the Funding Loan Documents shall not be subject to the principle of construing their meaning against the party that drafted them. Section 10.9 No Third Party Beneficiaries. The Borrower Loan Documents and the Funding Loan Documents are solely for the benefit of the Governmental Lender, the Funding Lender, the Servicer, the Fiscal Agent and the Borrower and, with respect to Sections 9.1.3 and 9.1.4 hereof, the Underwriter Group, and nothing contained in any Borrower Loan Document shall be deemed to confer upon anyone other than the Governmental Lender, the Funding Lender, the Fiscal Agent, the Servicer, and the Borrower any right to insist upon or to enforce the performance or observance of any of the obligations contained therein. Section 10.10 Assignment. The Borrower Loan, the Security Instrument, the Borrower Loan Documents and the Funding Loan Documents and all Funding Lender’s or Fiscal Agent’s rights, title, obligations and interests therein may be assigned by the Funding Lender or the Fiscal Agent, as appropriate, at any time in its sole discretion, whether by operation of law (pursuant to a merger or other successor in interest) or otherwise, subject in any event to the prov isions of Section 2.4 of the Funding Loan Agreement. Upon such assignment, all references to Funding Lender or the Fiscal Agent, as appropriate, in this Borrower Loan Agreement and in any Borrower Loan Document shall be deemed to refer to such assignee or successor in interest and such assignee or successor in interest shall thereafter stand in the place of the Funding Lender or the Fiscal Agent, as appropriate. The Borrower shall accord full recognition to any such assignment, and all rights and remedies of Funding Lender in connection with the interest so assigned shall be as fully enforceable by such assignee as they were by Funding Lender before such assignment. In connection with any proposed assignment, Funding Lender may disclose to the proposed assignee any information that the Borrower has delivered, or caused to be delivered, to Funding Lender with reference to the Borrower, General Partner, Guarantor or any Borrower Affiliate, or the Project, including information that the Borrower is required to deliver to Funding Lender pursuant to this Borrower Loan Agreement, provided that such proposed assignee agrees to treat such information as confidential. The Borrower may not assign its rights, interests or obligations under this Borrower Loan Agreement or under any of the Borrower Loan Documents or Funding Loan Documents, or the Borrower’s interest in any moneys to be disbursed or advanced hereunder, except only as may be expressly permitted hereby. Section 10.11 [Reserved]. Section 10.12 Governmental Lender, Funding Lender and Servicer Not in Control; No Partnership. None of the covenants or other provisions contained in this Borrower Loan Agreement Page 430 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 71 4933-7130-2287v5/024036-0105 shall, or shall be deemed to, give the Governmental Lender, the Funding Lender, the Fiscal Agent or the Servicer the right or power to exercise control over the affairs or management of the Borrower, the power of the Governmental Lender, the Funding Lender, the Fiscal Agent and the Servicer being limited to the rights to exercise the remedies referred to in the Borrower Loan Document s and the Funding Loan Documents. The relationship between the Borrower and the Governmental Lender, the Funding Lender, the Fiscal Agent and the Servicer is, and at all times shall remain, solely that of debtor and creditor. No covenant or provision of the Borrower Loan Documents or the Funding Loan Documents is intended, nor shall it be deemed or construed, to create a partnership, joint venture, agency or common interest in profits or income between the Borrower and the Governmental Lender, the Funding Lender, the Fiscal Agent or the Servicer or to create an equity interest in the Project in the Governmental Lender, the Funding Lender, the Fiscal Agent or the Servicer. Neither the Governmental Lender, the Funding Lender, the Fiscal Agent nor the Servic er undertakes or assumes any responsibility or duty to the Borrower or to any other person with respect to the Project or the Borrower Loan, except as expressly provided in the Borrower Loan Documents or the Funding Loan Documents; and notwithstanding any other provision of the Borrower Loan Documents and the Funding Loan Documents: (1) the Governmental Lender, the Funding Lender, the Fiscal Agent and the Servicer are not, and shall not be construed as, a partner, joint venturer, alter ego, manager, contro lling person or other business associate or participant of any kind of the Borrower or its stockholders, members, or partners and the Governmental Lender, the Funding Lender, the Fiscal Agent and the Servicer do not intend to ever assume such status; (2) the Governmental Lender, the Funding Lender, the Fiscal Agent and the Servicer shall in no event be liable for any the Borrower Payment Obligations, expenses or losses incurred or sustained by the Borrower; and (3) the Governmental Lender, the Funding Lender, the Fiscal Agent and the Servicer shall not be deemed responsible for or a participant in any acts, omissions or decisions of the Borrower, the Borrower Controlling Entities or its stockholders, members, or partners. The Governmental Lender, the Fundin g Lender, the Fiscal Agent and the Servicer and the Borrower disclaim any intention to create any partnership, joint venture, agency or common interest in profits or income between the Governmental Lender, the Funding Lender, the Servicer, the Fiscal Agent and the Borrower, or to create an equity interest in the Project in the Governmental Lender, the Funding Lender, the Fiscal Agent or the Servicer, or any sharing of liabilities, losses, costs or expenses. Section 10.13 Release. The Borrower hereby acknowledges that it is executing this Borrower Loan Agreement and each of the Borrower Loan Documents and the Funding Loan Documents to which it is a party as its own voluntary act free from duress and undue influence. Section 10.14 Term of Borrower Loan Agreement. This Borrower Loan Agreement shall be in full force and effect until all payment obligations of the Borrower hereunder have been paid in full and the Borrower Loan and the Funding Loan have been retired or the payment thereof has been provided for; except that on and after payment in full of the Borrower Note, this Borrower Loan Agreement shall be terminated, without further action by the parties hereto; provided, however, that the obligations of the Borrower under Sections 5.11, 5.14, 5.15, 9.1.3, 9.1.4, 9.1.5, 9.1.6 and 10.15 hereof, as well as under Section 5.7 of the Construction Funding Agreement, shall survive the termination of this Borrower Loan Agreement. Section 10.15 Reimbursement of Expenses. If, upon or after the occurrence of any Event of Default or Potential Default, the Governmental Lender, the Funding Lender, the Fiscal Agent or the Servicer shall employ attorneys or incur other expenses for the enforcement of performance or observance of any obligation or agreement on the part of the Borrower contained herein, the Borrower Page 431 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 72 4933-7130-2287v5/024036-0105 will on demand therefor reimburse the Governmental Lender, the Funding Lender, the Fiscal Agent and the Servicer for fees of such attorneys and such other expenses so incurred. The Borrower’s obligation to pay the amounts required to be paid under this Secti on 10.15 shall be subordinate to its obligations to make payments under the Borrower Note. Section 10.16 Permitted Contests. Notwithstanding anything to the contrary contained in this Borrower Loan Agreement, Borrower shall have the right to contest or object in good faith to any claim, demand, levy or assessment (other than in respect of Debt or Contractual Obligations of Borrower under any Borrower Loan Document or Related Document) by appropriate legal proceedings that are not prejudicial to Funding Lender’s rights, but this shall not be deemed or construed as in any way relieving, modifying or providing any extension of time with respect to Borrower’s covenant to pay and comply with any such claim, demand, levy or assessment, unless Borrower shall have given prior Written Notice to the Funding Lender of Borrower’s intent to so contest or object thereto, and unless (i) Borrower has, in the Funding Lender’s judgment, a reasonable basis for such contest, (ii) Borrower pays when due any portion of the claim, demand, levy or assessment to which Borrower does not object, (iii) Borrower demonstrates to Funding Lender’s satisfaction that such legal proceedings shall conclusively operate to prevent enforcement prior to final determination of such proceedings, (iv) Borrower furnishes such bond, surety, undertaking or other security in connection therewith as required by law, or as requested by and satisfactory to Funding Lender, to stay such proceeding, which bond, surety, undertaking or other security shall be issued by a bondin g company, insurer or surety company reasonably satisfactory to Funding Lender and shall be sufficient to cause the claim, demand, levy or assessment to be insured against by the Title Company or removed as a lien against the Project, (v) Borrower at all times prosecutes the contest with due diligence, and (vi) Borrower pays, promptly following a determination of the amount of such claim, demand, levy or assessment due and owing by Borrower, the amount so determined to be due and owing by Borrower. In the event that Borrower does not make, promptly following a determination of the amount of such claim, demand, levy or assessment due and owing by Borrower, any payment required to be made pursuant to clause (vi) of the preceding sentence, an Event of Default shall have occurred, and Funding Lender may draw or realize upon any bond or other security delivered to Funding Lender in connection with the contest by Borrower, in order to make such payment. Section 10.17 Funding Lender Approval of Instruments and Parties. All proceedings taken in accordance with transactions provided for herein, and all surveys, appraisals and documents required or contemplated by this Borrower Loan Agreement and the persons responsible for the execution and preparation thereof, shall be satisfactory to and subject to approval by Funding Lender. Funding Lender’s approval of any matter in connection with the Project shall be for the sole purpose of protecting the security and rights of Funding Lender. No such approval shall result in a waiver of any default of Borrower. In no event shall Funding Lender’s approval be a representation of any kind with regard to the matter being approved. Section 10.18 Funding Lender Determination of Facts. Funding Lender shall at all times be free to establish independently, to its reasonable satisfaction, the existence or nonexistence of any fact or facts, the existence or nonexistence of which is a condition of this Borrower Loan Agreement. Section 10.19 Calendar Months. With respect to any payment or obligation that is due or required to be performed within a specified number of Calendar Months after a specified date, such payment or obligation shall become due on the day in the last of such specified number of Calendar Months that corresponds numerically to the date so specified; provided, however, that with respect to Page 432 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 73 4933-7130-2287v5/024036-0105 any obligation as to which such specified date is the 29th, 30th or 31st day of any Calendar Month: if the Calendar Month in which such payment or obligation would otherwise become due does not have a numerically corresponding date, such obligation shall become due on the first day of the next succeeding Calendar Month. Section 10.20 Determinations by Lender. Except to the extent expressly set forth in this Borrower Loan Agreement to the contrary, in any instance where the consent or appro val of the Governmental Lender and the Funding Lender may be given or is required, or where any determination, judgment or decision is to be rendered by the Governmental Lender and the Funding Lender under this Borrower Loan Agreement, the granting, withholding or denial of such consent or approval and the rendering of such determination, judgment or decision shall be made or exercised by the Governmental Lender and the Funding Lender, as applicable (or its designated representative) at its sole and exclusi ve option and in its sole and absolute discretion. Section 10.21 Governing Law. This Borrower Loan Agreement shall be governed by and enforced in accordance with the laws of the State, without giving effect to the choice of law principles of the State that would require the application of the laws of a jurisdiction other than the State. Section 10.22 Consent to Jurisdiction and Venue. Borrower agrees that any controversy arising under or in relation to this Borrower Loan Agreement shall be litigated exclusively in the State. The state and federal courts and authorities with jurisdiction in the State shall have exclusive jurisdiction over all controversies which shall arise under or in relation to this Borrower Loan Agreement. Borrower irrevocably consents to service, jurisdiction, and venue of such courts for any such litigation and waives any other venue to which it might be entitled by virtue of domicile, habitual residence or otherwise. However, nothing herein is intended to limit Beneficiary Parties’ right to bring any suit, action or proceeding relating to matters arising under this Borrower Loan Agreement against Borrower or any of Borrower’s assets in any court of any other jurisdiction. Section 10.23 Successors and Assigns. This Borrower Loan Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors, successors-in-interest and assigns, as appropriate. The terms used to designate any of the parties herein shall be deemed to include the heirs, legal re presentatives, successors, successors-in- interest and assigns, as appropriate, of such parties. References to a “person” or “persons” shall be deemed to include individuals and entities. Section 10.24 Severability. The invalidity, illegality or unenforceability of any provision of this Borrower Loan Agreement shall not affect the validity, legality or enforceability of any other provision, and all other provisions shall remain in full force and effect. Section 10.25 Entire Agreement; Amendment and Waiver. This Borrower Loan Agreement contains the complete and entire understanding of the parties with respect to the matters covered. This Borrower Loan Agreement may not be amended, modified or changed, nor shall any waiver of any provision hereof be effective, except by a written instrument signed by the party against whom enforcement of the waiver, amendment, change, or modification is sought, and then only to the extent set forth in that instrument. No specific waiver of any of the terms of this Borrower Loan Agreement shall be considered as a general waiver. Without limiting the generality of the foregoing, no Disbursement shall constitute a waiver of any conditions to the Governmental Lender’s or the Funding Lender’s obligation to make further Disbursements nor, in the event Borro wer is unable to satisfy any such conditions, shall any such waiver have the effect of precluding the Governmental Page 433 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 74 4933-7130-2287v5/024036-0105 Lender or the Funding Lender from thereafter declaring such inability to constitute a Potential Default or Event of Default under this Borrower Loan Agreement. Section 10.26 Counterparts. This Borrower Loan Agreement may be executed in multiple counterparts, each of which shall constitute an original document and all of which together shall constitute one agreement. Section 10.27 Captions. The captions of the sections of this Borrower Loan Agreement are for convenience only and shall be disregarded in construing this Borrower Loan Agreement. Section 10.28 Servicer. Borrower hereby acknowledges and agrees that, pursuant to the terms of Section 39 of the Security Instrument: (a) from time to time, the Governmental Lender or the Funding Lender may appoint a servicer to collect payments, escrows and deposits, to give and to receive notices under the Borrower Note, this Borrower Loan Agreement or the other Borrower Loan Documents, and to otherwise service the Borrower Loan and (b) unless Borrower receives Written Notice from the Governmental Lender or the Funding Lender to the contrary, any action or right which shall or may be taken or exercised by the Governmental Lender or the Funding Lender may be taken or exercised by such servicer with the same force and effect. Section 10.29 Beneficiary Parties as Third Party Beneficiary. Each of the Beneficiary Parties and the Fiscal Agent shall be a third party beneficiary of this Borrower Loan Agreement for all purposes. Section 10.30 Waiver of Trial by Jury. TO THE MAXIMUM EXTENT PERMITTED UNDER APPLICABLE LAW, EACH OF BORROWER AND THE BENEFICIARY PARTIES (A) COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS BORROWER LOAN AGREEMENT OR THE RELATIONSHIP BETWEEN THE PARTIES THAT IS TRIABLE OF RIGHT BY A JURY AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL. IF FOR ANY REASON THIS WAIVER IS DETERMINED TO BE UNENFORCEABLE, ALL DISPUTES WILL BE RESOLVED BY JUDICIAL REFERENCE PURSUANT TO THE PROCEDURES SET FORTH IN THE SECURITY INSTRUMENT. Section 10.31 Time of the Essence. Time is of the essence with respect to this Borrower Loan Agreement. Section 10.32 [Reserved]. Section 10.33 Reference Date. This Borrower Loan Agreement is dated for reference purposes only as of the first day of _______________ 2026, and will not be effective and binding on the parties hereto unless and until the Closing Date (as defined herein) occurs. Page 434 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 75 4933-7130-2287v5/024036-0105 ARTICLE XI LIMITATIONS ON LIABILITY Section 11.1 Limitation on Liability. Notwithstanding anything to the contrary herein, the liability of the Borrower hereunder and under the other Borrower Loan Documents and the Funding Loan Documents shall be limited to the extent set forth in the Borrower Note. Section 11.2 Limitation on Liability of Governmental Lender. The Governmental Lender shall not be obligated to pay the principal (or prepayment price) of or interest on the Funding Loan, except from moneys and assets received by the Fiscal Agent or the Funding Lender on behalf of the Governmental Lender pursuant to this Borrower Loan Agreement. Neither the faith and credit nor the taxing power of the State, or any political subdivision thereof, nor the faith and credit of the Governmental Lender is pledged to the payment of the principal (or prepayment price) of or interest on the Funding Loan. The Governmental Lender shall not be liable for any costs, expenses, losses, damages, claims or actions, of any conceivable kind on any conceivable theory, under or by reason of or in connection with this Borrower Loan Agreement or the Funding Loan Agreement, except only to the extent amounts are received for the payment thereof from the Borrower under this Borrower Loan Agreement. The Borrower hereby acknowledges that the Governmental Lender’s sole source of moneys to repay the Funding Loan will be provided by the payments made by th e Borrower pursuant to this Borrower Loan Agreement, together with investment income on certain funds and accounts held by the Fiscal Agent under the Funding Loan Agreement, and hereby agrees that if the payments to be made hereunder shall ever prove insufficient to pay all principal (or prepayment price) of and interest on the Funding Loan as the same shall become due (whether by maturity, redemption, acceleration or otherwise), then upon notice from the Fiscal Agent, the Funding Lender or the Servicer, the Borrower shall pay such amounts as are required from time to time to prevent any deficiency or default in the payment of such principal (or prepayment price) of or interest on the Funding Loan, including, but not limited to, any deficiency caused by acts, omissions, nonfeasance or malfeasance on the part of the Fiscal Agent, the Funding Lender, the Borrower, the Governmental Lender or any third party, subject to any right of reimbursement from the Fiscal Agent, the Funding Lender, the Governmental Lender or any such third party, as the case may be, therefor. Section 11.3 Waiver of Personal Liability. No commissioner, member, officer, agent or employee of the Governmental Lender shall be individually or personally liable for the payment of any principal (or prepayment price) of or interest on the Funding Loan or any other sum hereunder or be subject to any personal liability or accountability by reason of the execution and delivery of this Borrower Loan Agreement; but nothing herein contained shall relieve any such member, director, officer, agent or employee from the performance of any official duty provided by law or by this Borrower Loan Agreement. Section 11.4 Limitation on Liability of Governmental Lender’s or Funding Lender’s Commissioners, Officers, Employees, Etc. (a) Borrower assumes all risks of the acts or omissions of the Governmental Lender, the Fiscal Agent and the Funding Lender, provided, however, this assumption is not intended to, and shall not, preclude the Borrower from pursuing such rights and remedies as it may have against the Governmental Lender, the Fiscal Agent and the Funding Lender at law or under any other Page 435 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 76 4933-7130-2287v5/024036-0105 agreement. None of Governmental Lender, the Fiscal Agent and the Funding Lender, nor the other Beneficiary Parties or their respective commissioners, office rs, directors, employees or agents shall be liable or responsible for (i) for any acts or omissions of the Governmental Lender, the Fiscal Agent and the Funding Lender; or (ii) the validity, sufficiency or genuineness of any documents, or endorsements, even if such documents should in fact prove to be in any or all respects invalid, insufficient, fraudulent or forged. In furtherance and not in limitation of the foregoing, the Governmental Lender, the Fiscal Agent and the Funding Lender may accept documents that appear on their face to be in order, without responsibility for further investigation, regardless of any notice or information to the contrary, unless acceptance in light of such notice or information constitutes gross negligence or willful misconduct on the part of the Funding Lender, the Governmental Lender or the Fiscal Agent. (b) None of the Governmental Lender, the Fiscal Agent, the Funding Lender, the other Beneficiary Parties or any of their respective commissioners, officers, directors, employees or agents shall be liable to any contractor, subcontractor, supplier, laborer, architect, engineer or any other party for services performed or materials supplied in connection with the Project. The Governmental Lender, the Fiscal Agent and the Funding Le nder shall not be liable for any debts or claims accruing in favor of any such parties against the Borrower or others or against the Project. Borrower is not and shall not be an agent of the Governmental Lender and the Funding Lender for any purpose. Nei ther the Governmental Lender, the Fiscal Agent or the Funding Lender is a joint venture partner with Borrower in any manner whatsoever. Prior to default by Borrower under this Borrower Loan Agreement and the exercise of remedies granted herein, the Govern mental Lender, the Fiscal Agent and the Funding Lender shall not be deemed to be in privity of contract with any contractor or provider of services to the Project, nor shall any payment of funds directly to a contractor, subcontractor or provider of services be deemed to create any third party beneficiary status or recognition of same by the Governmental Lender, the Fiscal Agent and the Funding Lender. Approvals granted by the Governmental Lender, the Fiscal Agent and the Funding Lender for any matters cov ered under this Borrower Loan Agreement shall be narrowly construed to cover only the parties and facts identified in any written approval or, if not in writing, such approvals shall be solely for the benefit of Borrower. (c) Any obligation or liability whatsoever of the Governmental Lender, the Fiscal Agent and the Funding Lender that may arise at any time under this Borrower Loan Agreement or any other Borrower Loan Document shall be satisfied, if at all, out of the Funding Lender’s assets only. No such obligation or liability shall be personally binding upon, nor shall resort for the enforcement thereof be had to, the Project or any of the Governmental Lender’s, the Fiscal Agent’s or the Funding Lender’s shareholders (if any), directors, officers, employees or agents, regardless of whether such obligation or liability is in the nature of contract, tort or otherwise. Section 11.5 Delivery of Reports, Etc. The delivery of reports, information and documents to the Governmental Lender, the Fiscal Agent and the Funding Lender as provided herein is for informational purposes only and the Governmental Lender’s, the Fiscal Agent’s and the Funding Lender’s receipt of such shall not constitute constructive knowledge of any information contained therein or determinable from information contained therein. The Governmental Lender, the Fiscal Agent and the Funding Lender shall have no duties or responsibilities except those that are specifically set forth herein, and no other duties or obligations shall be implied in this Borrower Loan Agreement against the Governmental Lender, the Fiscal Agent and the Funding Lender. Section 11.6 Electronic Transactions. The transactions described in this Borrower Loan Agreement may be conducted and the related documents may be stored by electronic means. Copies, Page 436 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 77 4933-7130-2287v5/024036-0105 telecopies, facsimiles, electronic files and other reproductions of original executed documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Notwithstanding the foregoing, original executed versions of each of the Funding Loan Documents shall be delivered to the Funding Lender in connection with the closing of the transactions described herein. ARTICLE XII DEFEASANCE Section 12.1 Defeasance Conditions. If the conditions specified in this Section 12.1 are met, then Borrower will have the right to defease the Borrower Loan in whole (“Defeasance”) and obtain the release of the Mortgaged Property from the Lien of the Security Instrument upon the satisfaction of each of the following conditions: (a) Borrower will not have the right to obtain Defeasance at any of the following times: (A) prior to the second (2nd) anniversary of the Closing Date; (B) if the Governmental Lender Note has been assigned to a REMIC trust, prior to the period commencing on the second (2nd) anniversary of the “startup date” of the last REMIC within the meaning of Section 860G(a)(9) of the Code that holds all or any portion of the Governmental Lender Note and including the last day o f the Lockout Period (as defined in the Borrower Note); (C) after the last day of the Lockout Period (as defined in the Borrower Note); or (D) after Funding Lender has accelerated the maturity of the unpaid principal balance of, accrued interest on, and other amounts payable under the Borrower Note. (b) Borrower shall have given Funding Lender, Fiscal Agent and Governmental Lender Notice (“Defeasance Notice”) specifying a Business Day (“Defeasance Closing Date”) on which Borrower desires to close the Defeasance. The Defeasance Closing Date specified by Borrower may not be more than 60 calendar days, nor less than 30 calendar days, after the latest date on which Funding Lender, Fiscal Agent and Governmental Lender each receives the Defeasance Notice. (c) The Defeasance Notice must be accompanied by a $10,000 non-refundable fee (“Defeasance Fee”) payable to Funding Lender for Funding Lender’s processing of the Defeasance. If the Defeasance is not consummated on the Defeasance Closing Date for any reason, in addition to forfeiting the Defeasance Fee, Borrower agrees to reimburse Funding Lender, Fiscal Agent and Governmental Lender for all third-party costs and expenses incurred by any of them in reliance on the executed Defeasance Notice, within 5 Business Days after Borrower receives a written demand for payment, accompanied by a statement, in reasonable detail, of such third-party costs and expenses. (d) No Event of Default shall have occurred and be continuing. Page 437 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 78 4933-7130-2287v5/024036-0105 (e) Borrower shall have delivered each of the following documents to Fund ing Lender, in form and substance satisfactory to Lender, on or prior to the Defeasance Closing Date, unless Funding Lender has issued a written waiver of its right to receive any such document: (i) One or more opinions of counsel for Borrower confirming each of the following: (A) Fiscal Agent has a valid and perfected first Lien and first priority security interest in the Defeasance Collateral and the proceeds of the Defeasance Collateral. (B) The Pledge Agreement (defined below) is duly authorized, executed, delivered and enforceable against Borrower in accordance with its terms. (C) If, as of the Defeasance Closing Date, the Note is held by a REMIC trust, then each of the following is correct: (1) The Defeasance has been effected in accordance with the requirements of Treasury Regulation Section 1.860G-2(a)(8) (as such regulation may be modified, amended or replaced from time to time). (2) The qualification and status of the REMIC trust as a REMIC will not be adversely affected or impaired as a result of the Defeasance. (3) That there will be no imposition of a tax under applicable REMIC provisions as a result of the Defeasance. (D) The Defeasance will not result in a “sale or exchange” of the Note within the meaning of Section 1001(c) of the Tax Code and the temporary and final regul ations promulgated thereunder. (ii) A written certificate from an independent certified public accounting firm (reasonably acceptable to Funding Lender), confirming that the Defeasance Collateral will generate cash sufficient to make all Scheduled Debt Payments (defined below) as they fall due under the Note, including full payment due on the Borrower Note on the earlier of the Mandatory Prepayment Date or the Maturity Date. (iii) Funding Lender’s form of a pledge and security agreement (“Pledge Agreement”) and financing statements which pledge and create a first priority security interest in the Defeasance Collateral in favor of Fiscal Agent. (iv) Funding Lender’s form of a transfer and assumption agreement (“Transfer and Assumption Agreement”), pursuant to which a newly-formed single purpose entity identified by Borrower and approved by Funding Lender and Governmental Lender as an accommodation borrower (the “Successor Borrower”) will assume all obligations of Borrower under the Borrower Loan and Borrower and Guarantor will be relieved from liability in connection with the Borrower Loan, including liabilities with respect to any loss, liability, damage, claim, cost or expense which directly or indirectly arises from or relates to any Prohibited Activities or Conditions exis ting prior to the date of the Defeasance Closing Date if Borrower delivers to Funding Lender a current environmental assessment report for the Mortgaged Property prepared at Borrower’s expense by a qualified environmental consultant engaged by Borrower and approved by Funding Lender, and in a Page 438 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 79 4933-7130-2287v5/024036-0105 manner reasonably satisfactory to Funding Lender which (i) is dated within 90 days prior to the date of the proposed Defeasance Date, and (ii) evidences no presence of Hazardous Materials on the Mortgaged Property and no other Prohibited Activities or Conditions with respect to the Mortgaged Property. (v) Forms of all documents necessary to release the Mortgaged Property from the Liens created by the Security Instrument and related UCC financing statements (collectively, “Release Instruments”), each in appropriate form required by the Property Jurisdiction. (vi) A Tax Counsel No Adverse Effect Opinion. (vii) If the Governmental Lender Note has been securitized in a Secondary Market Transaction, a written affirmation from a Rating Agency that the credit rating of the Securities issued by such Rating Agency immediately prior to the Defeasance will not be qualified, downgraded or withdrawn as a result of the occurrence of such event, which affirmation may be granted or withheld in such Rating Agency’s sole and absolute discretion, and, if required by the Approved Rating Agencies, Borrower shall also deliver or cause to be delivered (from counsel satisfactory to Funding Lender) a non-consolidation opinion with respect to the Successor Borrower in form and substance satisfactory to Funding Lender and the applicable Rating Agency. (viii) Any other opinions, certificates, documents or instruments that Lender may reasonably request. (ix) Borrower will deliver to Fiscal Agent, on or prior to the Defeasance Closing Date, each of the following: (A) Either money (which must be moneys or other amounts on deposited for a period of 123 days during which there shall not have occurred the filing of a voluntary or involuntary petition in bankruptcy under the United States Bankruptcy Code, or the commencement of a proceeding under any other applicable laws concerning insolvency, reorganization or bankruptcy, by or against the Borrower or the Governmental Lender; however, such amounts may be on deposit for a lesser period of time and still constitute eligible funds for the purpose of this Borrower Loan Agreement if the Funding Lender, receives an opinion of counsel acceptable to the Funding Lender to the effect that the use of such funds, if on deposit for such lesser period, will not constitute a voidable preference under the federal bankruptcy laws) or securities (which must be Government Obligations (as defined in the Funding Loan Agreement in clause (a) under the definition of “Permitted Investments”), subject to the Tax Certificate (the “Defeasance Collateral”), which meets all of the following requirements: (1) It is owned by Successor Borrower, free and clear of all Liens and claims of third parties. (2) It is in an amount sufficient to provide for (1) redemption payments to occur prior, but as close as possible, to all successive Borrower Loan Payment Dates occurring under the Borrower Note after the Defeasance Closing Date, and (2) delivery of earnings and redemption proceeds at least equal to the amount of principal and interes t due on the Borrower Note on each Borrower Loan Payment Date including full payment due on the Borrower Note on the Maturity Date (“Scheduled Debt Payments”). Page 439 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 80 4933-7130-2287v5/024036-0105 (3) All earnings and redemption payments received from the Defeasance Collateral will be paid directly to Fiscal Agent to be applied on account of the scheduled principal and interest due on the Borrower Note on each Borrower Loan Payment Date after the Defeasance Closing Date. (4) The pledge of the Defeasance Collateral will be effected through the book-entry facilities of a qualified securities intermediary designated by Funding Lender in conformity with all applicable laws. (B) All accrued and unpaid interest and all other sums due under the Borrower Note, this Borrower Loan Agreement and under the other Borrower Loan Documents up to the Defeasance Closing Date; provided that if the Defeasance Date is not a Borrower Loan Payment Date, the Borrower shall also pay interest that would have accrued on the Borrower Note through and including the next Borrower Loan Payment Date, unless the Defeasance Collateral shall include (or if the Government Obligations constituting the Defeasance Collateral) shall provide for payment of) all principal and interest computed from the Borrower Loan Payment Date prior to the D efeasance Date through the next succeeding Borrower Loan Payment Date; (x) Borrower will pay all reasonable costs and expenses incurred by Funding Lender, Fiscal Agent and Governmental Lender in connection with the Defeasance in full on or prior to the Defeasance Closing Date, which payment is required prior to Funding Lender’s issuance of the Release Instruments and whether or not Defeasance is completed. Such expenses include all fees, costs and expenses incurred by Funding Lender and its agents in connection with the Defeasance (including reasonable attorneys’ fee and costs for the review and preparation of the Pledge Agreement and of the other materials described in this Borrower Loan Agreement and any related documentation, Rating Agencies’ fees, or other costs related to the Defeasance). Funding Lender reserves the right to require that Borrower post a deposit to cover costs which Funding Lender reasonably anticipates will be incurred in connection with the Defeasance. (xi) No transfer fee or review fee will be payable to Funding Lender upon a Defeasance made in accordance with this Section 12.1. Section 12.2 Release. If Borrower obtains a release of the Mortgaged Property from the Lien of the Security Instrument pursuant to Section 12.1, then the Borrower Payment Obligations will be secured by the Pledge Agreement and reference will be made to the Pledge Agreement for other rights of Funding Lender, Fiscal Agent and Governmental Lender as to collateral for the Borrower Payment Obligations. [Remainder of Page Intentionally Left Blank] Page 440 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda [Signature Page to Borrower Loan Agreement – Sol Vista Apartments] S-1 4933-7130-2287v5/024036-0105 IN WITNESS WHEREOF, the undersigned have duly executed and delivered this Borrower Loan Agreement by their respective authorized representative, as of the date first set forth above. BORROWER: MU2 AFFORDABLE LP, a California limited partnership By: MU2 Affordable LLC, a California limited liability company Its Administrative General Partner By: Name: Its: By: SBCS Corporation, a California nonprofit public benefit corporation Its Managing General Partner By: Kathryn Lembo President and CEO (signatures follow on subsequent page) Page 441 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda [Signature Page to Borrower Loan Agreement – Sol Vista Apartments] S-2 4933-7130-2287v5/024036-0105 GOVERNMENTAL LENDER: CHULA VISTA HOUSING AUTHORITY By: Executive Director Page 442 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda [Signature Page to Borrower Loan Agreement – Sol Vista Apartments] S-3 4933-7130-2287v5/024036-0105 Agreed to and Acknowledged by: FUNDING LENDER: CITIBANK, N.A. By: Name: [_________] Title: [____________]Deal ID No.[_______] Page 443 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Stradling Yocca Carlson & Rauth Draft dated April 14, 2026 4925-0799-6815/024036-0105 FUNDING LOAN AGREEMENT among CITIBANK, N.A., as Funding Lender and CHULA VISTA HOUSING AUTHORITY, as Governmental Lender and WILMINGTON TRUST, NATIONAL ASSOCIATION, as Fiscal Agent dated as of ______________ 1, 2026 relating to: $______________ Chula Vista Housing Authority Multifamily Housing Revenue Note (Sol Vista Apartments) 2026 Series A Page 444 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda TABLE OF CONTENTS Page i 4925-0799-6815/024036-0105 ARTICLE I DEFINITIONS; PRINCIPLES OF CONSTRUCTION Section 1.1 Definitions ................................................................................................................... 2 Section 1.2 Effect of Headings and Table of Contents ................................................................ 11 Section 1.3 Date of Funding Loan Agreement ............................................................................. 11 Section 1.4 Designation of Time for Performance ....................................................................... 11 Section 1.5 Interpretation ............................................................................................................. 11 ARTICLE II TERMS; GOVERNMENTAL LENDER NOTE Section 2.1 Terms ......................................................................................................................... 11 Section 2.2 Form of Governmental Lender Note ......................................................................... 13 Section 2.3 Execution and Delivery of Governmental Lender Note ............................................ 13 Section 2.4 Required Transferee Representations; Participations; Sale and Assignment ............ 14 ARTICLE III PREPAYMENT Section 3.1 Prepayment of the Governmental Lender Note from Prepayment under the Borrower Note ........................................................................................................... 15 Section 3.2 Notice of Prepayment ................................................................................................ 15 ARTICLE IV SECURITY Section 4.1 Security for the Funding Loan ................................................................................... 15 Section 4.2 Delivery of Security .................................................................................................. 16 ARTICLE V LIMITED LIABILITY Section 5.1 Source of Payment of Funding Loan and Other Obligations .................................... 17 Section 5.2 Exempt from Individual Liability .............................................................................. 17 ARTICLE VI CLOSING CONDITIONS; APPLICATION OF FUNDS Section 6.1 Conditions Precedent to Closing ............................................................................... 18 ARTICLE VII FUNDS AND ACCOUNTS Section 7.1 Authorization to Create Funds and Accounts ............................................................ 19 Section 7.2 Investment of Funds .................................................................................................. 19 Section 7.3 Establishment of Funds ............................................................................................. 20 Section 7.4 Funding Loan Payment Fund .................................................................................... 20 Section 7.5 Expense Fund ............................................................................................................ 21 Section 7.6 Closing Costs Fund.................................................................................................... 21 Section 7.7 Project Fund............................................................................................................... 22 Section 7.8 Rebate Fund ............................................................................................................... 24 Section 7.9 Investments ................................................................................................................ 25 Page 445 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda TABLE OF CONTENTS (continued) Page ii 4925-0799-6815/024036-0105 ARTICLE VIII REPRESENTATIONS AND COVENANTS Section 8.1 General Representations ............................................................................................ 26 Section 8.2 No Encumbrance on Security .................................................................................... 27 Section 8.3 Repayment of Funding Loan ..................................................................................... 27 Section 8.4 Servicer ...................................................................................................................... 27 Section 8.5 Borrower Loan Agreement Performance .................................................................. 27 Section 8.6 Maintenance of Records; Inspection of Records ....................................................... 27 Section 8.7 Tax Covenants ........................................................................................................... 28 Section 8.8 Performance by the Borrower ................................................................................... 29 ARTICLE IX DEFAULT; REMEDIES Section 9.1 Events of Default ....................................................................................................... 29 Section 9.2 Acceleration of Maturity; Rescission and Annulment .............................................. 30 Section 9.3 Additional Remedies; Funding Lender Enforcement ................................................ 31 Section 9.4 Application of Money Collected ............................................................................... 32 Section 9.5 Remedies Vested in Funding Lender ........................................................................ 32 Section 9.6 Restoration of Positions ............................................................................................. 33 Section 9.7 Rights and Remedies Cumulative ............................................................................. 33 Section 9.8 Delay or Omission Not Waiver ................................................................................. 33 Section 9.9 Waiver of Past Defaults ............................................................................................. 33 Section 9.10 Remedies Under Borrower Loan Agreement or Borrower Note ............................... 33 Section 9.11 Waiver of Appraisement and Other Laws ................................................................. 33 Section 9.12 Suits to Protect the Security ...................................................................................... 34 Section 9.13 Remedies Subject to Applicable Law ........................................................................ 34 Section 9.14 Assumption of Obligations ........................................................................................ 34 ARTICLE X AMENDMENT; AMENDMENT OF BORROWER LOAN AGREEMENT AND OTHER DOCUMENTS Section 10.1 Amendment of Funding Loan Agreement ................................................................. 34 Section 10.2 Amendments Require Funding Lender Consent ....................................................... 35 Section 10.3 Consents and Opinions .............................................................................................. 35 ARTICLE XI THE FISCAL AGENT Section 11.1 Appointment of Fiscal Agent; Acceptance ................................................................ 35 Section 11.2 Certain Duties and Responsibilities of Fiscal Agent ................................................. 35 Section 11.3 Notice of Defaults...................................................................................................... 36 Section 11.4 Certain Rights of Fiscal Agent .................................................................................. 37 Section 11.5 Not Responsible for Recitals ..................................................................................... 39 Section 11.6 May Hold Funding Loan ........................................................................................... 40 Section 11.7 Moneys Held Hereunder ............................................................................................ 40 Section 11.8 Compensation and Reimbursement ........................................................................... 40 Section 11.9 Fiscal Agent Required; Eligibility ............................................................................. 41 Section 11.10 Resignation and Removal; Appointment of Successor ............................................. 41 Page 446 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda TABLE OF CONTENTS (continued) Page iii 4925-0799-6815/024036-0105 Section 11.11 Acceptance of Appointment by Successor ................................................................ 42 Section 11.12 Merger, Conversion, Consolidation or Succession to Business ................................ 42 Section 11.13 Appointment of Co-Fiscal Agent .............................................................................. 42 Section 11.14 Loan Servicing........................................................................................................... 43 Section 11.15 No Recourse Against Officers or Employees of Fiscal Agent .................................. 43 ARTICLE XII MISCELLANEOUS Section 12.1 Notices ....................................................................................................................... 43 Section 12.2 Term of Funding Loan Agreement ............................................................................ 46 Section 12.3 Successors and Assigns ............................................................................................. 46 Section 12.4 Legal Holidays........................................................................................................... 46 Section 12.5 Governing Law .......................................................................................................... 47 Section 12.6 Entire Agreement; Severability ................................................................................. 47 Section 12.7 Execution in Several Counterparts ............................................................................ 47 Section 12.8 Nonrecourse Obligation of the Borrower .................................................................. 47 Section 12.9 Waiver of Trial by Jury ............................................................................................. 47 Section 12.10 Electronic Transactions ............................................................................................. 47 Section 12.11 Reference Date .......................................................................................................... 48 Signatures ................................................................................................................................. S-1 EXHIBIT A FORM OF GOVERNMENTAL LENDER NOTE ............................................... A-1 EXHIBIT B FORM OF REQUIRED TRANSFEREE REPRESENTATIONS ........................ B-1 EXHIBIT C FORM OF WRITTEN REQUISITION OF THE BORROWER – PROJECT FUND ................................................................................................... C-1 EXHIBIT D FORM OF WRITTEN REQUISITION OF THE BORROWER – CLOSING COSTS FUND ..................................................................................... D-1 EXHIBIT E FISCAL AGENT WIRING INSTRUCTIONS ..................................................... E-1 EXHIBIT F FORM OF TRANSFEROR LETTER ................................................................... F-1 Page 447 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 4925-0799-6815/024036-0105 FUNDING LOAN AGREEMENT This Funding Loan Agreement, dated as of ______________ 1, 2026 (this “Funding Loan Agreement”), is entered into by CITIBANK, N.A., (together with any successor hereunder, the “Funding Lender”), the CHULA VISTA HOUSING AUTHORITY, a public body corporate and politic, organized and existing under the laws of the State of California (togeth er with its successors and assigns, the “Governmental Lender”) and WILMINGTON TRUST, NATIONAL ASSOCIATION, a national banking association duly organized and existing under the laws of the United States of America, as fiscal agent (together with its successors and assigns, the “Fiscal Agent”). R E C I T A L S : WHEREAS, the Governmental Lender is a public body, corporate and politic, duly organized and validly existing under the laws of the State of California; and WHEREAS, the Governmental Lender is empowered pursuant to Chapter 1 of Part 2 of Division 24 of the California Health and Safety Code (the “Act”) to: (a) make loans to any person to provide financing for residential rental developments located within the jurisdiction of the Governmental Lender and intended to be occupied in part by persons of low and moderate income; (b) incur indebtedness for the purpose of obtaining moneys to make such loans and provide such financing, to establish any required reserve funds and to pay administrative costs and other costs incurred in connection with the incurrence of such indebtedness of the Governmental Lender; and (c) pledge all or any part of the revenues, receipts or resources of the Governmental Lender, including the revenues and receipts to be received by the Governmental Lender from or in connection with such loans, and to mortgage, pledge or grant security interests in such loans or other property of the Governmental Lender in order to secure the payment of the principal of, prepayment premium, if an y, on and interest on such indebtedness of the Governmental Lender; and WHEREAS, MU2 AFFORDABLE LP, a California limited partnership (the “Borrower”), has requested that the Governmental Lender enter into this Funding Loan Agreement under which the Funding Lender will (i) advance funds (the “Funding Loan”) to or for the account of the Governmental Lender, and (ii) apply the proceeds of the Funding Loan to make a loan (the “Borrower Loan”) to the Borrower to finance the acquisition, construction and equippin g of a 95 unit plus 1 manager’s unit multifamily rental housing project located at at the Southwest corner of Santa Victoria Road and Santa Diana Road in Chula Vista, County of San Diego, California, known as “Sol Vista Apartments”; and WHEREAS, simultaneously with the delivery of this Funding Loan Agreement, the Governmental Lender and the Borrower will enter into a Borrower Loan Agreement of even date herewith (as it may be supplemented or amended, the “Borrower Loan Agreement”), whereby the Borrower agrees to make loan payments to the Governmental Lender in an amount that, when added to other funds available under this Funding Loan Agreement, will be sufficient to enable the Governmental Lender to repay the Funding Loan and to pay all costs and expenses related thereto when due; and WHEREAS, to evidence its payment obligations under the Borrower Loan Agreement, the Borrower will execute and deliver to the Governmental Lender its Borrower Note (as defined herein) and the obligations of the Borrower under the Borrower Note will be secured by a lien on and security Page 448 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2 4925-0799-6815/024036-0105 interest in the Project (as defined herein) pursuant to a Multifamily Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing (California), of even date herewith (the “Security Instrument”), made by the Borrower in favor of the Governmental Lender, as assigned to the Funding Lender to secure the performance by the Governmental Lender of its obligations under the Funding Loan; and WHEREAS, the Governmental Lender has executed and delivered to the Funding Lender its Multifamily Housing Revenue Note (Sol Vista Apartments) 2026 Series A (the “Governmental Lender Note”), dated as of the Closing Date, evidencing its obligation to make the payments due to the Funding Lender under the Funding Loan as provided in this Funding Loan Agreement, all things necessary to make the Funding Loan Agreement the valid, binding and legal limited obligation of the Governmental Lender, have been done and performed and the execution and delivery of this Fundi ng Loan Agreement and the execution and delivery of the Governmental Lender Note, subject to the terms hereof, have in all respects been duly authorized. A G R E E M E N T : NOW, THEREFORE, in consideration of the premises and the mutual representations, covenants and agreements herein contained, the parties hereto do hereby agree as follows: ARTICLE I DEFINITIONS; PRINCIPLES OF CONSTRUCTION Section 1.1 Definitions. For all purposes of this Funding Loan Agreement, except as otherwise expressly provided or unless the context otherwise clearly requires: (a) Unless specifically defined herein, all capitalized terms shall have the meanings ascribed thereto in the Borrower Loan Agreement. (b) The terms “herein, “hereof” and “hereunder” and other words of similar import refer to this Funding Loan Agreement as a whole and not to any particular Article, Section or other subdivision. The terms “agree” and “agreements” contained herein are intended to include and mean “covenant” and “covenants.” (c) All references made (i) in the neuter, masculine or feminine gender shall be deemed to have been made in all such genders, and (ii) in the singular or plural number shall be deemed to have been made, respectively, in the plural or singular number as well. Singular terms shall include the plural as well as the singular, and vice versa. (d) All accounting terms not otherwise defined herein shall have the meanings assigned to them, and all computations herein provided for shall be made, in accordance with GAAP. (e) All references in this instrument to designated “Articles,” “Sections” and other subdivisions are to the designated Articles, Sections and subdivisions of this instrument as originally executed. (f) All references in this instrument to a separate instrument are to such separate instrument as the same may be amended or supplemented from time to time pursuant to the applicable provisions thereof. Page 449 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 3 4925-0799-6815/024036-0105 (g) References to the Governmental Lender Note as “tax-exempt” or to the “tax- exempt status” of the Governmental Lender Note are to the exclusion of interest on the Gover nmental Lender Note (other than any portion of the Governmental Lender Note held by a “substantial user” of the Project or a “related person” within the meaning of Section 147 of the Code) from gross income for federal income tax purposes pursuant to Section 103(a) of the Code. (h) The following terms have the meanings set forth below: “Act” means Chapter 1 of Part 2 of Division 24 of the California Health and Safety Code. “Additional Borrower Payments” shall have the meaning given such term in the Borrower Loan Agreement. “Affiliate” means, as to any Person, any other Person that, directly or indirectly, is in Control of, is Controlled by or is under common Control with such Person. “Approved Transferee” means (1) a “qualified institutional buyer” (“QIB”) as defined in Rule 144A promulgated under the Securities Act that is a financial institution or commercial bank having capital and surplus of $5,000,000,000 or more, (2) an affiliate of the Funding Lender, (3) a trust or custodial arrangement established by the Funding Lender or one of its affiliates or any state or local government or any agency or entity which is a political subdivision of a federal, state or local government (a “Governmental Entity”), in each case (a) the beneficial interests in which will be owned only by QIBs or (b) the beneficial interests in which will be rated in the “BBB” category or higher without regard to modifier (or the equivalent investment grade category) by at least one nationally recognized rating agency, or (4) a Governmental Entity. “Authorized Amount” means $____________________, the maximum principal amount of the Funding Loan under this Funding Loan Agreement. “Authorized Governmental Lender Representative” means the Chairperson, Vice Chairperson, Executive Director, or Treasurer of the Governmental Lender, or any person or persons designated to act on behalf of the Governmental Lender by a certificate filed with the Borrower, Funding Lender and Servicer, if any, containing the specimen signatures of such person or persons and signed on behalf of the Governmental Lender by its Chairperson, Vice Chairperson, Executive Director, or Treasurer of the Governmental Lender. “Borrower” means MU2 Affordable LP, a California limited partnership. “Borrower Loan” shall mean the mortgage loan made by the Governmental Lender to the Borrower pursuant to the Borrower Loan Agreement in the aggregate principal amount of the Borrower Loan Amount, as evidenced by the Borrower Note. “Borrower Loan Agreement” shall mean the Borrower Loan Agreement, of even date herewith, between the Governmental Lender and the Borrower, as supplemented, amended or replaced from time to time in accordance with its terms. “Borrower Loan Agreement Default” shall mean any event of default set forth in Section 8.1 of the Borrower Loan Agreement. A Borrower Loan Agreement Default shall “exist” if a Borrower Loan Agreement Default shall have occurred and be continuing beyond any applicable cure period. Page 450 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 4 4925-0799-6815/024036-0105 “Borrower Loan Amount” shall mean $____________________, the maximum principal amount of the Borrower Loan under the Borrower Loan Agreement. “Borrower Loan Documents” shall have the meaning given such term in the Borrower Loan Agreement. “Borrower Note” shall mean that certain Multifamily Note, dated the Closing Date, in the original maximum principal amount of $____________________, made by the Borrower and payable to the Governmental Lender, evidencing the loan of the proceeds of the Governmental Lender Note, as endorsed and assigned by the Governmental Lender without recourse to the Funding Lender, as executed by the Borrower, and as it may thereafter be amended or supplemented from time to time. “Business Day” shall mean any day other than (i) a Saturday or a Sunday, or (ii) a day on which federally insured depository institutions, including banks and trust companies, in New York, New York, Wilmington, Delaware, the State of California or in the city where the Fiscal Agent is located, are authorized or obligated by law, regulation, governmental decree or executive order to be closed. “Closing Costs” has the meaning given to the term Costs of Funding in the Borrower Loan Agreement. “Closing Date” shall means _____________, 2026, the date that initial Funding Loan proceeds are disbursed hereunder. “Code” means the Internal Revenue Code of 1986 as in effect on the date of execution and delivery of the Governmental Lender Note or (except as otherwise referenced herein) as it may be amended to apply to obligations issued on the Closing Date, together with applicable proposed, temporary and final regulations promulgated, and applicable official public guidance published, under the Code. “Conditions to Conversion” shall have the meaning given such term in the Construction Funding Agreement. “Construction Funding Agreement” means that certain Construction Funding Agreement of even date herewith, between the Funding Lender, as agent for the Governmental Lender, and Borrower, pursuant to which the Borrower Loan will be advanced by the Funding Lender (or the Servicer on its behalf), as agent of the Governmental Lender, to the Fiscal Agent for disbursement to the Borrower and setting forth certain provisions relating to disbursement of the Borrower Loan during construction, insurance and other matters, as such agreement may be amended, modified, supplemented and replaced from time to time. “Contingency Draw-Down Agreement” means the Contingency Draw-Down Agreement of even date herewith among the Fiscal Agent, the Funding Lender, and the Borrower relating to possible conversion of the portion of the Funding Loan evidenced by the Governmental Lender Note from a draw down loan to a fully funded loan. “Control” shall mean, with respect to any Person, either (a) ownership directly or through other entities of more than 50% of all beneficial e quity interest in such Person, or (b) the possession, Page 451 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 5 4925-0799-6815/024036-0105 directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, through the ownership of voting securities, by contract or otherwise. “Conversion” has the meaning given to such term in the Borrower Loan Agreement. “Conversion Date” shall have the meaning given such term in the Construction Funding Agreement. “Draw-Down Notice” shall mean a notice described in Section 1.01 of the Contingency Draw- Down Agreement regarding the conversion of the Funding Loan from a draw down loan to a fully funded loan. “Equity Investor” shall mean WNC Holding, LLC, a California limited liability company, and its permitted successors and assigns. “Event of Default” shall have the meaning ascribed thereto in Section 9.1 hereof. “Fair Market Value” shall mean the price at which a willing buyer would purchase the investment from a willing seller in a bona fide, arm’s length transaction (determined as of the date the contract to purchase or sell the investment becomes binding) if the investment is traded on an established securities market (within the meaning of section 1273 of the Code) and, otherwise, the term “Fair Market Value” means the acquisition price in a bona fide arm’s length transaction (as referenced above) if (a) the investment is a certificate of deposit that is acquired in accordance with applicable regulations under the Code, (b) the investment is an agreement with specifically negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate (for example, a guaranteed investment contract, a forward supply contract or other investment agreement) that is acquired in accordance with applicable regulations under the Code, (c) the investment is a United States Treasury Security--State and Local Government Series that is acquired in accordance with applicable regulations of the United States Bureau of Public Debt, or (d) any commingled investment fund in which the City and related parties do not own more than a ten percent (10%) beneficial interest therein if the return paid by the fund is without regard to the source of the investment. To the extent required by the Regulations, the term “investment” will include a hedge. “Fiscal Agent” shall mean Wilmington Trust, National Association, a national banking association, which entity is appointed pursuant to Section 11.1 to serve as Fiscal Agent under this Funding Loan Agreement, and any successor thereto pursuant to Section 11.10. “Fiscal Agent’s Fees” shall mean the annual administration fee for the Fiscal Agent’s ordinary fees and expenses in rendering its services under this Funding Loan Agreement during each 12 -month period, payable on the Closing Date and annually in advance. “Funding Lender” shall mean Citibank N.A., a national banking association, and any successor under this Funding Loan Agreement and the Borrower Loan Documents. “Funding Loan Agreement” shall mean this Funding Loan Agreement, by and among the Funding Lender, the Governmental Lender and the Fiscal Agent, as it may from time to time be supplemented, modified or amended by one or more agreements or other instruments supplemental hereto entered into pursuant to the applicable provisions hereof. Page 452 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 6 4925-0799-6815/024036-0105 “Funding Loan Documents” shall mean (a) this Funding Loan Agreement, (b) the Borrower Loan Agreement, (c) the Regulatory Agreement, (d) the Tax Certificate, (e) the Borrower Loan Documents, (f) all other documents evidencing, securing, governing or otherwise pertaining to the Funding Loan, and (g) all amendments, modifications, renewals and substitutions of any of the foregoing. “Governmental Lender” shall mean the Chula Vista Housing Authority. “Governmental Lender Note” shall mean that certain Chula Vista Housing Authority Multifamily Housing Revenue Note (Sol Vista Apartments) 2026 Series A, dated the Closing Date, in the original maximum principal amount of $____________________, made by the Governmental Lender and payable to the Funding Lender, as executed by the Governmental Lender and as it may thereafter be amended or supplemented from time to time. “Highest Rating Category” shall mean, with respect to a Permitted Investment, that the Permitted Investment is rated by S&P or Moody’s in the highest rating category given by that ratin g agency for that general category of security. By way of example, the Highest Rating Category for tax- exempt municipal debt established by S&P is “A1+” for debt with a term of one year or less and “AAA” for a term greater than one year, with corresponding ratings by Moody’s of “MIG1” (for fixed rate) or “VMIG1” (for variable rate) for three months or less and “Aaa” for greater than three months. If at any time (a) both S&P and Moody’s rate a Permitted Investment and (b) one of those ratings is below the Highest Rating Category, then such Permitted Investment will, nevertheless, be deemed to be rated in the Highest Rating Category if the lower rating is no more than one rating category below the highest rating category of that rating agency. For example, a Permitted Investment rated “AAA” by S&P and “Aa3” by Moody’s is rated in the Highest Rating Category. If, however, the lower rating is more than one full rating category below the Highest Rating Category of that rating agency, then the Permitted Investment will be deemed to be rated below the Highest Rating Category. For example, a Permitted Investment rated “AAA” by S&P and “A1” by Moody’s is not rated in the Highest Rating Category. “Maturity Date” shall mean[November 1, 2059]. “Maximum Rate” shall mean the lesser of (a) 12% per annum, and (b) the maximum interest rate that may be paid on the Funding Loan under State law. “Minimum Beneficial Ownership Amount” shall mean an amount no less than fifteen percent (15%) of the outstanding principal amount of the Funding Loan, or the full outstanding principal amount of the Funding Loan, if such principal amount is less than $250,000. “Moody’s” shall mean Moody’s Investors Service, Inc., or its successor. “Negative Arbitrage Account” means the Negative Arbitrage Account of the Project Fund established under Section 7.3, as otherwise described in the Contingency Draw-Down Agreement. “Negative Arbitrage Deposit” has the meaning set forth in the Contingency Draw-Down Agreement. Page 453 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 7 4925-0799-6815/024036-0105 “Noteowner” or “owner of the Governmental Lender Note” means the owner of the Governmental Lender Note as shown on the registration books maintained by the Fiscal Agent pursuant to Section 2.4(e). “Note Proceeds Account” means the Note Proceeds Account of the Project Fund established under Section 7.3. “Ongoing Governmental Lender Fee” shall mean the ongoing portion of the Annual Administration Fee (as that term is defined in the Regulatory Agreement) that is payable after the Closing Date. “Opinion of Counsel” shall mean a written opinion from an attorney or firm of attorneys, acceptable to the Funding Lender and the Governmental Lender with experience in the matters to be covered in the opinion; provided that whenever an Opinion of Counsel is required to address the exclusion of interest on the Governmental Lender Note from gross income for purposes of federal income taxation, such opinion shall be provided by Tax Counsel. “Permitted Investments” shall mean, to the extent authorized by law for investment of any moneys held under this Funding Loan Agreement, but only to the extent that the same are acquired at Fair Market Value: (a) Direct obligations of the United States of America including obligations issued or held in book-entry form on the books of the Department of the Treasury of the Uni ted States of America (“Government Obligations”). (b) Direct obligations of, and obligations on which the full and timely payment of principal and interest is unconditionally guaranteed by, any agency or instrumentality of the United States of America or direct obligations of the World Bank, which obligations are rated in the Highest Rating Category. (c) Demand deposits or time deposits with certificates of deposit issued by the Fiscal Agent or its affiliates or any bank organized under the laws of the United States of America or any state or the District of Columbia which has combined capital, surplus and undivided profits of not less than $50,000,000 and maturing in less than 365 days; provided that the Fiscal Agent or such other institution has been rated at least “VMIG-1”/”A-1+” by Moody’s/S&P which deposits or certificates are fully insured by the Federal Deposit Insurance Corporation or collateralized pursuant to the requirements of the Office of the Comptroller of the Currency. (d) Bonds (including tax-exempt bonds), bills, notes or other obligations of or secured by Fannie Mae, Freddie Mac, the Federal Home Loan Bank or the Federal Farm Credit Bank. (e) Money market funds rated AAA by S&P which are registered with the Securities and Exchange Commission and which meet the requirements of Rule 2(a)(7) of the Investment Company Act of 1940, as amended, which may be administered by the Fiscal Agent or its affiliates. (f) Collateralized Investment Agreements or Repurchase Agreements with financial institutions rated in the “A” category or higher without regard to qualifiers, by at least one Rating Agency. The agreement must be continually collateralized with obligations specified in Page 454 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 8 4925-0799-6815/024036-0105 paragraphs (a), (b) and/or (d) above, eligible for wire through the Federal Reserve Bank System or the DTC/PTC as applicable, and at a level of at least 103% of the amount on deposit and valued no less than daily. The collateral must be held by a third party custodian and be free and clear of all liens and claims of third parties. Securities must be valued daily, marked-to-market at current market price plus accrued interest. If the market value of the securities is found to be below the required level, the provider must restore the market value of the securities to the required l evel within one (1) business day. Permitted collateral must be delivered to and held in a segregated account by the Fiscal Agent or a custodian (the “Collateral Agent”), and the Collateral Agent cannot be the provider. The collateral must be delivered to the Collateral Agent before/simultaneous with payment (perfection by possession of certificated securities). Acceptable collateral must be free and clear of all liens and claims of third parties and shall be registered in the name of the Collateral Agent for the benefit of the Governmental Lender and Fiscal Agent. The agreement shall state that the Collateral Agent has a valid and perfected first priority security interest in the securities, any substituted securities and all proceeds thereof. (g) Any other investment authorized by the laws of the State, if such investment is approved in advance in writing by the Funding Lender in its sole discretion. Permitted Investments shall not include any of the following: (1) Except for any investment described in the next sentence, any investment or any agreement with a maturity profile greater than the date(s) on which funds representing the corpus of the investment may be needed under the Funding Loan Documents. This exception (1) shall not apply to Permitted Investments listed in paragraph (g). (2) Any obligation bearing interest at an inverse floating rate. (3) Any investment which may be prepaid or called at a price less than its purchase price prior to stated maturity. (4) Any investment the interest rate on which is variable and is established other than by reference to a single index plus a fixed spread, if any, and which interest rate moves proportionately with that index. “Person” shall mean any individual, corporation, limited liability company, partne rship, joint venture, estate, trust, unincorporated association, any federal, state, county or municipal government or any bureau, department or agency thereof and any fiduciary acting in such capacity on behalf of any of the foregoing. “Pledged Revenues” shall mean the amounts pledged under this Funding Loan Agreement to the payment of the principal of, prepayment premium, if any, and interest on the Funding Loan and the Governmental Lender Note, consisting of the following: (i) all income, revenues, proceeds and other amounts to which the Governmental Lender is entitled (other than amounts received by the Governmental Lender with respect to the Unassigned Rights) derived from or in connection with the Project and the Funding Loan Documents, including all Borrower Loan Payments due under the Borrower Loan Agreement and the Borrower Note, payments with respect to the Borrower Loan Payments and all amounts obtained through the exercise of the remedies provided in the Funding Loan Documents and all receipts credited under the provisions of this Funding Loan Agreement against said amounts payable, and (ii) moneys held in the funds and accounts established under this Funding Loan Page 455 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 9 4925-0799-6815/024036-0105 Agreement, together with investment earnings thereon (except any amounts on deposit in the Expense Fund, Rebate Fund and Closing Costs Fund). “Prepayment Premium” shall mean (i) any premium payable by the Borrower pursuant to the Borrower Loan Documents in connection with a prepayment of the Borrower Note (including any prepayment premium as set forth in the Borrower Note) and (ii) any premium payable on the Governmental Lender Note pursuant to this Funding Loan Agreement. “Project” shall have the meaning given to that term in the Borrower Loan Agreement. “Rating Agency” shall mean any one and each of S&P, Moody’s and Fitch then rating the Permitted Investments or any other nationally recognized statistical rating agency then rating the Permitted Investments, which has been approved by the Funding Lender. “Regulations” shall mean with respect to the Code, the relevant U.S. Treasury regulations and proposed regulations thereunder or any relevant successor provision to such regulations and proposed regulations. “Regulatory Agreement” shall mean that certain Amended and Restated Regulatory Agreement and Declaration of Restrictive Covenants, dated as of the date hereof, between the Governmental Lender and the Borrower, as hereafter amended or modified. “Remaining Funding Loan Proceeds Account” means the Remaining Funding Loan Proceeds Account of the Project Fund established under Section 7.3, as otherwise described in the Contingency Draw-Down Agreement. “Required Transferee Representations” shall mean the representations in substantially the form attached to this Funding Loan Agreement as Exhibit B. “Resolution” shall mean the resolution of the Governmental Lender authorizing the Funding Loan and the execution and delivery of the Funding Loan Documents to which the Governmental Lender is a party. “Responsible Officer” means, when used with respect to the Fiscal Agent, the president, any vice president, any assistant vice president, the secretary, any assistant secretary, the treasurer, any assistant treasurer, any senior associate, any associate or any other officer of the Fiscal Agent within the corporate trust office designated for the Fiscal Agent in Section 12.1 hereof (or any successor corporate trust office, the “Corporate Trust Office”) customarily performing functions similar to those performed by the persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred at the Corporate Trust Office because of such person’s knowledge of and familiarity with the particular subject and having direct responsibility for the administration of this Funding Loan Agreement. “Securities Act” shall mean the Securities Act of 1933, as amended. “Security” shall have the meaning assigned to it in Section 4.1. “Security Instrument” shall mean the Multifamily Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing (California) (as amended, restated and/or supplemented from time to time) of even date herewith, made by the Borrower in favor of the Governmental Lender, as Page 456 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 10 4925-0799-6815/024036-0105 assigned to the Funding Lender to secure the performance by the Governmental Le nder of its obligations under the Funding Loan. “Servicer” shall mean any Servicer appointed by the Funding Lender to perform certain servicing functions with respect to the Funding Loan and on the Borrower Loan pursuant to a separate servicing agreement to be entered into between the Funding Lender and the Servicer. Initially the Servicer shall be the Funding Lender pursuant to this Funding Loan Agreement. “Servicing Agreement” shall mean any servicing agreement entered into between the Funding Lender and a Servicer with respect to the servicing of the Funding Loan and/or the Borrower Loan. “S&P” shall mean S&P Global Ratings, a business unit of Standard & Poor’s Ratings Services, and its successors “State” shall mean the State of California. “Tax Certificate” shall mean the Tax Certificate and Agreement, dated the Closing Date, executed and delivered by the Governmental Lender and the Borrower, as it may be amended from time to time. “Tax Counsel” shall mean (a) Stradling Yocca Carlson & Rauth LLP, or (b) any other attorney or firm of attorneys designated by the Governmental Lender and approved by the Funding Lender having a national reputation for skill in connection with the authorization and issuance of municipal obligations under Sections 103 and 141 through 150 (or any successor provisions) of the Code. “Tax Counsel Approving Opinion” shall mean an opinion of Tax Counsel substantially to the effect that the Governmental Lender Note constitute s a valid and binding obligation of the Governmental Lender and that, under existing statutes, regulations published rulings and judicial decisions, the interest on the Governmental Lender Note is excludable from gross income for federal income tax purposes (subject to the inclusion of such customary exceptio ns as are acceptable to the recipient thereof). “Tax Counsel No Adverse Effect Opinion” shall mean an opinion of Tax Counsel substantially to the effect that the taking of the action specified therein will not, in and of itself, adversely affect any exclusion of interest on the Governmental Lender Note from gross income for purposes of federal income taxation (subject to the inclusion of such customary exceptions as are acceptable to the recipient thereof). “UCC” shall mean the Uniform Commercial Code as in effect in the State. “Unassigned Rights” shall mean the Governmental Lender’s rights to (a) reimbursement and payment of its fees, costs and expenses and the Rebate Amount under Section 2.5 of the Borrower Loan Agreement and Section 5 of the Regulatory Agreement, (b) access to the Project under Section 5.17 of the Borrower Loan Agreement, (c) indemnification under Section 5.15 of the Borrower Loan Agreement and Section 9 of the Regulatory Agreement, (d) attorneys’ fees under Sections 5.11, 5.14 and 10.05 of the Borrower Loan Agreement and Section 20 of the Regulatory Agreement, (e) receive notices, reports and other statements and its rights to consent to certain matters, including but not limited to its right to consent to amendments to this Funding Loan A greement, the Borrower Loan Agreement and the Regulatory Agreement, and otherwise as provided in this Funding Loan Page 457 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 11 4925-0799-6815/024036-0105 Agreement and the Borrower Loan Agreement, (f) seek performance by the Borrower of its obligations under the Regulatory Agreement, and (g) seek performance of, and enforce, various tax covenants as described in Section 2.2(b)(i) of the Borrower Loan Agreement, including but not limited to those in Sections 5.34 and 5.35 of the Borrower Loan Agreement. “Written Certificate,” “Written Certification,” “Written Consent,” “Written Direction,” “Written Notice,” “Written Order,” “Written Registration,” “Written Request,” and “Written Requisition” shall mean a written certificate, direction, notice, order or requisition signed by an Authorized Borrower Representative, an Authorized Governmental Lender Representative or an authorized representative of the Funding Lender and delivered to the Funding Lender, the Servicer, the Fiscal Agent or such other Person as required under the Funding Loan Documents. “Yield” shall mean yield as defined in Section 148(h) of the Code and any regulations promulgated thereunder. Section 1.2 Effect of Headings and Table of Contents. The Article and Section headings herein and in the Table of Contents are for convenience only and shall n ot affect the construction hereof. Section 1.3 Date of Funding Loan Agreement. The date of this Funding Loan Agreement is intended as and for a date for the convenient identification of this Funding Loan Agreement and is not intended to indicate that this Funding Loan Agreement was executed and delivered on said date. Section 1.4 Designation of Time for Performance. Except as otherwise expressly provided herein, any reference in this Funding Loan Agreement to the time of day shall mean the time of day in the city where the Fundi ng Lender maintains its place of business for the performance of its obligations under this Funding Loan Agreement. Section 1.5 Interpretation. The parties hereto acknowledge that each of them and their respective counsel have participated in the drafting and revision of this Funding Loan Agreement. Accordingly, the parties agree that any rule of construction that disfavors the drafting party shall not apply in the interpretation of this Funding Loan Agreement or any amendment or supplement or exhibit hereto. ARTICLE II TERMS; GOVERNMENTAL LENDER NOTE Section 2.1 Terms. (a) Principal Amount. The total principal amount of the Funding Loan is hereby expressly limited to the Authorized Amount. (b) Draw-Down Funding. The Funding Loan is originated on a draw-down basis. The proceeds of the Funding Loan shall be advanced by the Funding Lender directly to the Fiscal Agent (pursuant to the wiring instructions on Exhibit E attached hereto) for deposit by the Fiscal Agent to the Project Fund for the account of the Governmental Lender as and when needed to make each advance in accordance with the disbursement provisions of the Borrower Loan Agreement and the Construction Funding Agreement. Subject to the terms and conditions of the Borrower Loan Page 458 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 12 4925-0799-6815/024036-0105 Agreement, and this Funding Loan Agreement, the Funding Lender agrees to advance, on behalf of the Governmental Lender, to the Fiscal Agent for deposit by the Fiscal Agent to the Project Fund $________________ on the Closing Date (the “Initial Advance”). The Initial Advance shall be wired by the Funding Lender to the Title Company to pay for Project Costs on the Closing Date and shall be deemed received by the Fiscal Agent for deposit in the Project Fund and disbursed. Notwithstand ing anything in this Funding Loan Agreement to the contrary, no additional amounts of the Funding Loan may be drawn down and funded hereunder after December 31, 2029; provided, however, that upon the delivery of a Tax Counsel No Adverse Effect Opinion to the Governmental Lender, Fiscal Agent, and the Funding Lender such date may be changed to a later date as specified in such Tax Counsel No Adverse Effect Opinion. The Governmental Lender consents to the terms of the Contingency Draw -Down Agreement and agrees to take all actions requested in writing by the Funding Lender or the Borrower that are reasonably required of the Governmental Lender, in connection with the conversion of the Funding Loan to a fully drawn loan pursuant to the provisions of the Contin gency Draw-Down Agreement in the event a Draw-Down Notice is filed by the Funding Lender or the Borrower, all at the expense of the Borrower. The Funding Lender authorizes and directs the Fiscal Agent to enter into the Contingency Draw-Down Agreement. (c) Origination Date; Maturity. The Funding Loan shall be originated on the Closing Date and shall mature on the Maturity Date at which time the entire principal amount of the portion of the Funding Loan evidenced by the Governmental Lender Note, to the extent not previously paid, and all accrued and unpaid interest, shall be due and payable. (d) Principal. The outstanding principal amount of the Governmental Lender Note and of the Funding Loan as of any given date shall be the total amount advanced to the Fiscal Ag ent by the Funding Lender to or for the account of the Governmental Lender to fund advances with respect to the Borrower Note under the Borrower Loan Agreement and the Construction Funding Agreement as proceeds of the Borrower Loan, less any payments of principal of the Governmental Lender Note previously received upon payment of principal amounts under the Borrower Note, including regularly scheduled principal payments and voluntary and mandatory prepayments. The principal amount of the Governmental Lender Note and interest thereon shall be payable on the basis specified in this paragraph (d) and in paragraphs (e) and (f) of this Section 2.1. The Fiscal Agent shall keep a record of all principal advances and principal repayments made under the Governmental Lender Note and shall upon written request provide the Governmental Lender with a statement of the outstanding principal balance of the Governmental Lender Note and the Funding Loan. (e) Interest. Interest shall be paid on the outstanding principal amount of the Governmental Lender Note at the rate or rates set forth in the Borrower Note and otherwise as set forth in the Borrower Loan Agreement. (f) Corresponding Payments. The payment or prepayment of principal, interest and premium, if any, due on the Funding Loan and the Governmental Lender Note shall be identical with and shall be made on the same dates, terms and conditions, as the principal, interest, premiums, late payment fees and other amounts due on the Borrower Note. Any payment or prepayment made by the Borrower of principal, interest, Premium, if any, due on the Borrower Note shall be deemed to Page 459 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 13 4925-0799-6815/024036-0105 be like payments or prepayments of principal, interest and Premium, if any, due on the Funding Loan and the Governmental Lender Note. (g) Usury. The Governmental Lender intends to conform strictly to the usury laws applicable to this Funding Loan Agreement and the Governmental Lender Note and all agreements made in the Governmental Lender Note, this Funding Loan Agreement and the Funding Loan Documents are expressly limited so that in no event whatsoever shall the amount paid or agreed to be paid as interest or the amounts paid for the use of money advanced or to be advanced hereunder exceed the highest lawful rate prescribed under any law which a court of competent jurisdiction may deem applicable hereto. If, from any circumstances whatsoever, the fulfillment of any provision of the Governmental Lender Note, this Funding Loan Agreement or the other Funding Loan Documents shall involve the payment of interest in excess of the limit prescribed by any law which a court of competent jurisdiction may deem applicable hereto, then the obligation to pay interest hereunder shall be reduced to the maximum limit prescribed by law. If from any circumstances whatsoever, the Fun ding Lender shall ever receive anything of value deemed interest, the amount of which would exceed the highest lawful rate, such amount as would be excessive interest shall be deemed to have been applied, as of the date of receipt by the Funding Lender, to the reduction of the principal remaining unpaid hereunder and not to the payment of interest, or if such excessive interest exceeds the unpaid principal balance, such excess shall be refunded to the Borrower. This paragraph shall control every other provision of the Governmental Lender Note, this Funding Loan Agreement and all other Funding Loan Documents. In determining whether the amount of interest charged and paid might otherwise exceed the limit prescribed by law, the Governmental Lender intends and agrees that (i) interest shall be computed upon the assumption that payments under the Borrower Loan Agreement and other Funding Loan Documents will be paid according to the agreed terms, and (ii) any sums of money that are taken into account in the calculation of interest, even though paid at one time, shall be spread over the actual term of the Funding Loan. Section 2.2 Form of Governmental Lender Note. As evidence of its obligation to repay the Funding Loan, simultaneously with the delivery of this Funding Loan Agreement to the Funding Lender, the Governmental Lender hereby agrees to execute and deliver the Governmental Lender Note. The Governmental Lender Note shall be substantially in the form set forth in Exhibit A attached hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Funding Loan Agreement. In connection with Conversion, the Funding Lender shall have the right to exchange the then existing Governmental Lender Note on or after the Conversion Date for a new Governmental Lender Note with a dated date of the Conversion Date and in a stated princi pal amount equal to the then outstanding principal amount of the Governmental Lender Note, which amount will equal the Permanent Period Amount (as defined in the Borrower Loan Agreement) of the applicable portion of the Borrower Loan, but shall not otherwise change any material terms of the applicable Governmental Lender Note. Section 2.3 Execution and Delivery of Governmental Lender Note. The Governmental Lender Note shall be executed on behalf of the Governmental Lender by the manual or facsimile signature of the Authorized Governmental Lender Representative and attested by the manual or facsimile signature of its Secretary or Deputy Secretary of Chula Vista Housing Authority. The manual or facsimile signatures of individuals who were the proper officers of the Gove rnmental Lender at the time of execution shall bind the Governmental Lender, notwithstanding that such individuals or any of Page 460 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 14 4925-0799-6815/024036-0105 them shall have ceased to hold such offices prior to the execution and delivery of the Governmental Lender Note or shall not have held such offices at the date of the Governmental Lender Note. Section 2.4 Required Transferee Representations; Participations; Sale and Assignment. (a) The Funding Lender shall deliver to the Governmental Lender and the Fiscal Agent the Required Transferee Representations in substantially the form attached hereto as Exhibit B on the Closing Date. (b) The Funding Lender shall have the right to sell (i) the Governmental Lender Note and the Funding Loan or (ii) any portion of or a participation interest in the Governmental Lender Note and the Funding Loan, to the extent permitted by clause (c) below, provided that such sale shall be only to Approved Transferees that execute and deliver to the Funding Lender, with a copy to the Governmental Lender and the Fiscal Agent, the Required Transferee Representations; provided, however, that no Required Transferee Representations shall be required to be delivered by transferees or beneficial interest holders described in clauses (3) or (4) of the definition of “Approved Transferee ,” but a Transferor Letter in the form attached hereto as Exhibit F shall be delivered by the Funding Lender in connection with a transfer to a Governmental Entity for purposes of facilitating a transfer under clause (3) of the definition of “Approved Transferee.” (c) Notwithstanding the other provisions of this Section 2.4, no beneficial ownership interest in the Governmental Lender Note and the Funding Loan shall be sold in an amount that is less than the Minimum Beneficial Ownership Amount; provided, however, that bene ficial ownership interests in the Governmental Lender Note and Funding Loan described in clause (3) of the definition of “Approved Transferee” may be sold in any amount without regard to the Minimum Beneficial Ownership Amount. (d) No service charge shall be made for any sale or assignment of any portion of the Governmental Lender Note, but the Governmental Lender may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such sale or assignment. Such sums shall be paid in every instance by the purchaser or assignee of the Funding Loan or portion thereof. (e) The Governmental Lender Note, or any interest therein, shall be in fully registered form transferable to subsequent owners only on the registration books which shall be maintained by the Fiscal Agent, as agent of the Governmental Lender, for such purpose and which shall be open to inspection by the Governmental Lender and the Funding Lender. The Governmental Lender Note shall not be transferred through the services of the Depository Trust Company or any other third party registrar. The Fiscal Agent acknowledges that the Funding Lender is the initial registered owner of the Governmental Lender Note and shall remain the sole registered owner of the Governmental Lender Note except as provided herein. The Funding Lender shall provide written notice to the Fiscal Agent of any transfer by the Funding Lender of the Governmental Lender Note or any interest of the Funding Lender in the Governmental Lender Note. (f) The parties agree that no rating shall be sought from a rating agency with respect to the Funding Loan or the Governmental Lender Note. Page 461 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 15 4925-0799-6815/024036-0105 ARTICLE III PREPAYMENT Section 3.1 Prepayment of the Governmental Lender Note from Prepayment under the Borrower Note. The Governmental Lender Note are subject to voluntary and mandatory prepayment as follows: (a) The Governmental Lender Note shall be subject to voluntary prepayment in full or in part by the Governmental Lender, from funds received by the Fiscal Age nt from the Borrower under the Borrower Loan Agreement to the extent and in the manner and on any date that the Borrower Note are subject to voluntary prepayment as set forth therein, at a prepayment price equal to the principal balance of the Borrower Note to be prepaid, plus interest thereon to the date of prepayment and the amount of any Prepayment Premium payable under the Borrower Note, plus any Additional Borrower Payments due and payable under the Borrower Loan Agreement through the date of prepayment. Except as specifically permitted in the Borrower Note, the Borrower shall not have the right to voluntarily prepay all or any portion of the Borrower Note, thereby causing the Governmental Lender Note to be prepaid, without the prior written consent of Funding Lender, which consent may be withheld in Funding Lender’s sole and absolute discretion. (b) The Governmental Lender Note shall be subject to mandatory prepayment in whole or in part upon prepayment of the Borrower Note at the direction of the Funding Lender in accordance with the terms of the Borrower Note at a prepayment price equal to the outstanding principal balance of the Borrower Note prepaid, plus accrued interest plus any other amounts payable under the Borrower Note or the Borrower Loan Agreement. Section 3.2 Notice of Prepayment. Notice of prepayment of the Governmental Lender Note shall be deemed given to the extent that notice of prepayment of the Borrower Note is timely and properly given to the Funding Lender and the Fiscal Agent (with a copy to the Governmental Lender) in accordance with the terms of the Borrower Note and the Borrower Loan Agreement, and no separate notice of prepayment of the Governmental Lender Note is required to be given. ARTICLE IV SECURITY Section 4.1 Security for the Funding Loan. To secure the payment of the Funding Loan and the Governmental Lender Note, to declare the terms and conditions on which the Funding Loan and the Governmental Lender Note are secured, and in consideration of the premises and of the funding of the Funding Loan by the Funding Lender, the Governmental Lender by these presents does grant, bargain, sell, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set ove r and confirm to the Funding Lender (except as limited herein), a lien on and security interest in the following described property (excepting, however, in each case, the Unassigned Rights) (said property, rights and privileges being herein collectively called, the “Security”): (a) All right, title and interest of the Governmental Lender in, to and under the Borrower Loan Agreement and the Borrower Note, including, without limitation, all rents, revenues Page 462 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 16 4925-0799-6815/024036-0105 and receipts derived by the Governmental Lender from the Borrower relating to the Project and including, without limitation, all Pledged Revenues, Borrower Loan Payments and Additional Borrower Payments derived by the Governmental Lender under and pursuant to, and subject to the provisions of, the Borrower Loan Agreement; provided that the pledge and assignment made under this Funding Loan Agreement shall not impair or diminish the obligations of the Governmental Lender under the provisions of the Borrower Loan Agreement; (b) All right, title and interest of the Gove rnmental Lender in, to and under, together with all rights, remedies, privileges and options pertaining to, the Funding Loan Documents, and all other payments, revenues and receipts derived by the Governmental Lender under and pursuant to, and subject to the provisions of, the Funding Loan Documents; (c) Any and all moneys and investments from time to time on deposit in, or forming a part of, all funds and accounts created and held by the Fiscal Agent under this Funding Loan Agreement and any amounts held at any time in the Remaining Funding Loan Proceeds Account, any Negative Arbitrage Deposit and any other amounts held under the Contingency Draw -Down Agreement (other than any amounts held in the Expense Fund, the Rebate Fund, and the Closing Cost Fund), subject to the provisions of this Funding Loan Agreement permitting the application thereof for the purposes and on the terms and conditions set forth herein; and (d) Any and all other real or personal property of every kind and nature or description, which may from time to time hereafter, by delivery or by writing of any kind, be subjected to the lien of this Funding Loan Agreement as additional security by the Governmental Lender or anyone on its part or with its consent, or which pursuant to any of the provisions hereof or of the Borrower Loan Agreement may come into the possession or control of the Fiscal Agent, the Funding Lender or a receiver appointed pursuant to this Funding Loan Agreement; and the Funding Lender and the Fiscal Agent are hereby authorized to receive any and all such property as and for additional security for the Funding Loan and the Governmental Lender Note and to hold and apply all such property subject to the terms hereof. The pledge and assignment of and the security interest granted in the Security pursuant to this Section 4.1 for the payment of the principal of, premium, if any, and interest on the Governmental Lender Note, in accordance with its terms and provisions, and for the payment of all other amounts due hereunder, shall attach and be valid and binding from and after the time of the delivery of the Governmental Lender Note by the Governmental Lender. The Security so pledged and then or thereafter received by the Governmental Lender, Fiscal Agent or the Funding Lender shall immediately be subject to the lien of such pledge and security interest without any physical delivery or recording thereof or further act, and the lien of such pledge and security interest shall be valid and binding and prior to the claims of any and all parties having claims of any kind in tort, contract or otherwise against the Governmental Lender irrespective of whether such parties have notice thereof. Section 4.2 Delivery of Security. To provide security for the payment of the Funding Loan and the Governmental Lender Note, the Governmental Lender has pledged and assigned to secure payment of the Funding Loan and the Governmental Lender Note its right, title and interest in the Security to the Funding Lender. In connection with such pledge, assignment, transfer and conveyance, there shall be delivered to the Funding Lender, by or at the expense of the Borrower, the following documents or instruments promptly following their execution and, to the extent applicable, their recording or filing: Page 463 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 17 4925-0799-6815/024036-0105 (a) Each Borrower Note endorsed without recourse to the Funding Lender by the Governmental Lender; (b) The originally executed Borrower Loan Agreement and Regulatory Agreement; (c) The originally executed Security Instrument and all other Borrower Loan Documents existing at the time of delivery of the Borrower Note and an assignment for security of the Security Instrument from the Governmental Lender to the Funding Lender, in recordable form; (d) Uniform Commercial Code financing statements or other chattel security documents giving notice of the Funding Lender’s status as an assignee of the Governmental Lender’s security interest in any personal property forming part of the Project, in form suitable for filing; and (e) Uniform Commercial Code financing statements giving notice of the pledge by the Governmental Lender of the Security pledged under this Funding Loan Agreement. There shall be delivered and deposited with the Funding Lender such additional documents, financing statements, and instruments as the Funding Lender may reasonably require from time to time for the better perfecting and assuring to the Funding Lender of its lien and security interest in and to the Security including, at the request of the Funding Lender, any amounts held under the Contingency Draw-Down Agreement, in each case at the expense of the Borrower. ARTICLE V LIMITED LIABILITY Section 5.1 Source of Payment of Funding Loan and Other Obligations. The Funding Loan is a limited obligation of the Governmental Lender, payable solely from the Pledged Revenues and other funds and moneys and Security pledged and assigned hereunder. NONE OF THE GOVERNMENTAL LENDER (EXCEPT AS PROVIDED IN THE FIRST SENTENCE OF THIS SECTION 5.1), THE CITY OF CHULA VISTA, THE STATE, OR ANY POLITICAL SUBDIVISION THEREOF (EXCEPT THE GOVERNMENTAL LENDER, TO THE LIMITED EXTENT SET FORTH HEREIN), SHALL IN ANY EVENT BE LIABLE FOR THE PAYMENT OF THE PRINCIPAL OF, PREMIUM (IF ANY) OR INTEREST ON THE FUNDING LOAN OR FOR THE PERFORMANCE OF ANY PLEDGE, OBLIGATION OR AGREEMENT OF ANY KIND WHATSOEVER WITH RESPECT THERETO EXCEPT AS SET FORTH HEREIN, AND NONE OF THE FUNDING LOAN, OR THE GOVERNMENTAL LENDER NOTES OR ANY OF THE GOVERNMENTAL LENDER’S AGREEMENTS OR OBLIGATIONS WITH RESPECT TO THE FUNDING LOAN, THE GOVERNMENTAL LENDER NOTES, OR HEREUNDER OR UNDER ANY OF THE OTHER FUNDING LOAN DOCUMENTS, SHALL BE CONSTRUED TO CONSTITUTE AN INDEBTEDNESS OF OR A PLEDGE OF THE FAITH AND CREDIT OF OR A LOAN OF THE CREDIT OF OR A MORAL OBLIGATION OF ANY OF THE FOREGOING WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION WHATSOEVER. THE GOVERNMENTAL LENDER HAS NO TAXING POWER. Section 5.2 Exempt from Individual Liability. No covenant, condition or agreement contained herein shall be deemed to be a covenant, agreement or obligation of any present or future member of the Board of Commissioners, officer, director, employee or agent of the Governmental Page 464 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 18 4925-0799-6815/024036-0105 Lender in his individual capacity, and none of the members of the Board of Commissioners, the officers, directors, employees or agents of the Governmental Lender executing the Governmental Lender Note or this Funding Loan Agreement shall be liable personally on the Governmental Lender Note or under this Funding Loan Agreement or be subject to any personal liability or accountability by reason of the issuance of the Governmental Lender Note or the execution of this Funding Loan Agreement or any of the Funding Loan Documents. ARTICLE VI CLOSING CONDITIONS; APPLICATION OF FUNDS Section 6.1 Conditions Precedent to Closing. Closing of the Funding Loan on the Closing Date shall be conditioned upon satisfaction or waiver by the Funding Lender in its sole discretion of each of the conditions precedent to closing set forth in this Funding Loan Agreement, including but not limited to the following: (a) Receipt by the Funding Lender of the original Governmental Lender Note; (b) Receipt by the Funding Lender of the original executed Borrower Note, endorsed without recourse to the Funding Lender by the Governmental Lender; (c) Receipt by the Funding Lender of executed counterpart copies of this Funding Loan Agreement, the Borrower Loan Agreement, the Construction Funding Agreement, the Regulatory Agreement, the Tax Certificate and the Security Instrument; (d) Receipt by the Funding Lender of a certified copy of the Resolution; (e) The Required Transferee Representations from the Funding Lender; (f) Delivery into escrow or to the Fiscal Agent, as appropriate, of all amounts required to be paid in connection with the origination of the Borrower Loan and the Funding Loan and any underlying real estate transfers or transactions, including the Costs of Funding Deposit , in accordance with Section 2.3(c)(ii) of the Borrower Loan Agreement; (g) Receipt by the Funding Lender of a Tax Counsel Approving Opinion; (h) Receipt by the Funding Lender of an Opinion of Counsel from Tax Counsel to the effect that the Governmental Lender Note are exempt from registration under the Securities Act of 1933, as amended, and this Funding Loan Agreement is exempt from qualification under the Trust Indenture Act of 1939, as amended; (i) Delivery of an opinion of counsel to the Borrower addressed to the Governmental Lender and the Funding Lender to the effect that the Borrower Loan Documents and the Regulatory Agreement are valid and binding obligations of the Borrower that are enforceable against the Borrower in accordance with their terms, subject to such exceptions and qualifications as are acceptable to the Governmental Lender; and (j) Receipt by the Funding Lender of any other documents or opinions that the Funding Lender or Tax Counsel may require in connection with the closing. Page 465 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 19 4925-0799-6815/024036-0105 ARTICLE VII FUNDS AND ACCOUNTS Section 7.1 Authorization to Create Funds and Accounts. Except as provided in Section 7.3 hereof, no funds or accounts shall be established in connection with the Funding Loan at the time of closing and origination of the Funding Loan. The Funding Lender, the Fiscal Age nt and the Servicer, if any, and any designee of the Funding Lender or the Servicer, are authorized to establish and create from time to time such other funds and accounts or subaccounts as may be necessary for the deposit of moneys (including, without limitation, insurance proceeds and/or condemnation awards), if any, received by the Governmental Lender, the Fiscal Agent, the Funding Lender or the Servicer pursuant to the terms hereof or any of the other Funding Loan Documents and not immediately transferred or disbursed pursuant to the terms of the Funding Loan Documents and/or the Borrower Loan Documents. Section 7.2 Investment of Funds. Amounts held in any funds or accounts created under this Funding Loan Agreement shall be invested by the Fiscal Agent, the Funding Lender, the Servicer or the designee of the Funding Lender or Servicer, as applicable, in Permitted Investments at the written direction of the Borrower, subject in all cases to the restrictions of Section 8.7 hereof and of the Tax Certificate. The Borrower’s written instruction shall be sufficient evidence that the investment constitutes a Permitted Investment (including as to the legality thereof). In the absence of any such instruction, monies shall be held uninvested in cash. Permitted Investments purchased as an investment of moneys in any fund shall be deemed to be part of such fund or account. All interest or gain derived from the investment of amounts in any of the funds or accounts established hereunder shall be deposited in such fund or account. For purposes of acquiring any investments hereunder, the Fiscal Agent may commingle funds held by it hereunder, except as provided in Section 7.8(h) hereof with respect to the Rebate Fund. The Fiscal Agent shall incur no liability for losses arising f rom any investments made pursuant to this Section. The Fiscal Agent may make any and all investments permitted under this Funding Loan Agreement through its own trust or banking department or any affiliate and may pay said department reasonable, customary fees for placing such investments. The Fiscal Agent and its affiliates may act as principal, agent, sponsor, advisor or depository with respect to Permitted Investments under this Funding Loan Agreement. The Fiscal Agent shall not be liable for any losses from investments made by the Fiscal Agent in accordance with this Funding Loan Agreement. The Governmental Lender, the Funding Lender and the Borrower (by its execution of the Borrower Loan Agreement) acknowledge that the Fiscal Agent is not providing i nvestment supervision, recommendations, or advice. The Fiscal Agent shall furnish the Borrower and Funding Lender periodic cash transaction statements that include detail for all investment transactions effected by the Fiscal Agent or brokers selected by the Borrower. Upon the Borrower’s or Funding Lender’s election, such statements will be delivered via the Fiscal Agent’s online service, and upon electing such service, paper statements will be provided only upon request. The Borrower waives the right to receive brokerage confirmations of security transactions effected by the Fiscal Agent as they occur, to the extent permitted by law. The Borrower further understands that trade confirmations for securities transactions effected by the Fiscal Agent will be available upon request and at no additional cost, and other trade confirmations may be obtained from the applicable broker. Page 466 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 20 4925-0799-6815/024036-0105 Section 7.3 Establishment of Funds. There are established with the Fiscal Agent the following funds and accounts: (a) The Funding Loan Payment Fund; (b) The Project Fund (consisting solely of a Note Proceeds Account, an Equity Account, a Remaining Funding Loan Proceeds Account and a Negative Arbitrage Account); (c) The Expense Fund; (d) The Closing Costs Fund; and (e) The Rebate Fund (to be established by the Fiscal Agent once the Fiscal Agent is required to deposit or transfer, as applicable, amounts to the Rebate Fund in accordance with Section 7.8(a)). All money required to be deposited with or paid to the Fiscal Agent for the account of any of the funds or accounts created by this Funding Loan Agreement shall be held by the Fiscal Agent for the benefit of the Funding Lender, and except for money held in the Expense Fund,the Rebate Fund and Closing Costs Fund, shall, while held by the Fiscal Agent, constitute part of the Pledged Revenues and be subject to the lien hereof. All money to be deposited with or paid to the Fiscal Agent shall be wired to the Fiscal Agent pursuant to the wiring instructions contained in Exhibit E attached hereto. The Fiscal Agent shall provide Written Notice of any change to such wiring instructions to the Funding Lender and the Borrower no less than five (5) Business Days prior to the next payment date for which such revised instructions will be applicable. Section 7.4 Funding Loan Payment Fund. The Governmental Lender and the Borrower shall have no interest in the Funding Loan Payment Fund or the moneys therein, which shall always be maintained by the Fiscal Agent completely separate and segregated from all other moneys held hereunder and from any other moneys of the Governmental Lender and the Borrower. The Fiscal Agent shall deposit into the Funding Loan Payment Fund any amounts received from or on behalf of the Borrower as payments of principal of or premium, if any, or interest on the Borrower Loan and any other amounts received by the Fiscal Agent that are subject to the lien and pledge of this Funding Loan Agreement, including any Pledged Revenues not required to be deposited to the Expense Fund or not otherwise specifically directed in writing to be deposited into other funds created by this Funding Loan Agreement. The Fiscal Agent shall apply all amounts on deposit in the Funding Loan Payment Fund in the following order of priority: First, to pay or provide for the payment of the interest then due on the Funding Loan to the Funding Lender or any transferee of the Funding Lender with respect to the Funding Loan; Second, to pay or provide for the payment or the prepayment (together with any Prepayment Premium payable in connection with such prepayment) of principal (and premium, if any) on the Funding Loan to the Funding Lender or any transferee of the Funding Lender with respect to Page 467 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 21 4925-0799-6815/024036-0105 the Funding Loan, provided moneys have been transferred or deposited into the Funding Loan Payment Fund for such purpose; and Third, to pay or provide for the payment of the Funding Loan on the Maturity Date to the Funding Lender or any transferee of the Funding Lender with respect to the Funding Loan. Section 7.5 Expense Fund. The Fiscal Agent shall deposit into the Expense Fund the amounts required by the Regulatory Agreement or the Borrower Loan Agreement to be paid by the Borrower to the Governmental Lender or the Fiscal Agent on behalf of the Borrower. Amounts on deposit in the Expense Fund shall be used to pay the fees and expenses of the Governmental Lender and the Fiscal Agent, as and when the same become due. In that regard, moneys in the Expense Fund shall be withdrawn or maintained, as appropriate, by the Fiscal Agent to pay (i) the Ongoing Governmental Lender Fee to the Governmental Lender as and when due, (ii) the Fiscal Agent’s Fees to the Fiscal Agent when due, (iii) upon receipt, to the Fiscal Agent, any amounts due to the Fiscal Agent which have not been paid, other than amounts paid in accordance with clause (ii) hereof, and (iv) upon receipt, to, or at the direction of, the Governmental Lender, any amounts owing the Governmental Lender by the Borrower and then due and unpaid, other than amounts paid in accordance with clause (i) hereof. In the event that the amounts on deposit in the Expense Fund are not equal to the amounts payable from the Expense Fund as provided in the preceding paragraph on any date on which such amounts are due and payable, the Fiscal Agent shall give notice to the Borrower of such deficiency and of the amount of such deficiency and request payment within two Business Days to the Fiscal Agent of the amount of such deficiency. Written notice of any insufficiency, which would result in the Governmental Lender not receiving the Ongoing Governmental Lender Fee on the applicable due date, shall be provided by the Fiscal Agent to the Governmental Lender (with a copy to the Borrower and the Funding Lender) within 10 days of the respective due date. Upon payment by the Borrower to the Fiscal Agent of such deficiency, the amounts for which such deficiency was requested shall be paid by the Fiscal Agent. Notwithstanding anything herein to the contrary, the Governmental Lender, shall prepare and submit a written invoice to the Borrower for payment of the Ongoing Governmental Lender Fee not later than 30 days prior to the due date for payment of such Ongoing Governmental Lender Fee, the Fiscal Agent shall remit moneys received by the Borrower to the Gov ernmental Lender for payment of such fee. Section 7.6 Closing Costs Fund. Amounts in the Closing Costs Fund shall be disbursed by the Fiscal Agent to pay Closing Costs on the Closing Date or as soon as practicable thereafter as follows: moneys on deposit in the Closing Costs Fund shall be applied to pay Closing Costs at the written direction of the Authorized Borrower Representative, consented to by the Funding Lender and the Governmental Lender, in the form attached hereto as Exhibit D. Any interest earnings on amounts on deposit in the Closing Costs Fund shall remain in the Closing Costs Fund. Any moneys remaining in the Closing Costs Fund (including investment proceeds) after the earlier of (i) the payment of all costs of issuance as certified in writing to the Fiscal Agent by the Borrower or (ii) a period of six (6) months after the Closing Date, shall be paid to or at the direction of the Borrower and the Closing Costs Fund shall be closed. Page 468 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 22 4925-0799-6815/024036-0105 Section 7.7 Project Fund. (a) All proceeds of the Funding Loan provided by the Funding Lender shall be deposited to the Note Proceeds Account of the Project Fund and disbursed as herein provided; provided, however, that (i) the initial disbursement of the Funding Loan on the Closing Date shall be sent by the Funding Lender to Fiscal Agent, which shall then transfer such funds to the Title Company, and (ii) any proceeds of the Funding Loan funded pursuant to the Contingency Draw-Down Agreement shall be deposited to the Remaining Funding Loan Proceeds Account of the Project Fund and disbursed as herein provided. The Fiscal Agent shall disburse moneys in the Project Fund for the acquisition, construction, improvement and equipping of the Project, to pay other Qualified Project Costs and to pay other costs related to the Project as provided herein. Not less than 97% of the moneys deposited in and credited to the Note Proceeds Account and Remaining Funding Loan Proceeds Account of the Project Fund representing the proceeds of the Funding Loan, including Investment Income thereon, will be expended fo r Qualified Project Costs (the “97% Requirement”). The amounts on deposit in the Note Proceeds Account and Remaining Funding Loan Proceeds Account of the Project Fund shall not be applied to the payment of Closing Costs. Before any payment shall be made from the Note Proceeds Account of the Project Fund, the Regulatory Agreement shall have been executed and submitted to a title company for recordation in the official records of San Diego County and there shall be filed with the Fiscal Agent a Written Requisition of the Borrower substantially in the form attached hereto as Exhibit C and approved by the Funding Lender pursuant to the terms, conditions and provisions of the Construction Funding Agreement. In addition to the above, in connection with a Written Requisition: (i) Only the signature of an authorized officer of the Funding Lender shall be required on a Written Requisition during any period in which a default by the Borrower has occurred and is then continuing under the Borrower Loan (Written Notice of wh ich default has been given in writing by an authorized officer of the Funding Lender to the Fiscal Agent and the Governmental Lender, and the Fiscal Agent shall be entitled to conclusively rely on any such Written Notice as to the occurrence and continuation of such a default). (ii) The Fiscal Agent shall disburse amounts in the Note Proceeds Account of the Project Fund for the payment of interest due on the Governmental Lender Note upon receipt from the Funding Lender of a statement detailing the amount due (and without any need for a Written Requisition signed by the Funding Lender or any approval by an Authorized Representative of the Borrower) so long as the amounts to be disbursed do not exceed $869,324 in the aggregate. (iii) The Fiscal Agent may conclusively rely on all Written Requisitions, the execution of the Written Requisitions by the Authorized Borrower Representative and the approval of all Written Requisitions by the Funding Lender, as required by this Section, as conditions of payment from the Project Fund, which Written Requisitions constitute, as to the Fiscal Agent, irrevocable determinations that all conditions to payment of the specified amounts from the Project Fund hav e been satisfied. These documents shall be retained by the Fiscal Agent, subject at all reasonable times to examination by the Borrower, the Governmental Lender, the Funding Lender and the agents and representatives thereof upon reasonable notice to the Fiscal Agent. The Fiscal Agent is not required Page 469 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 23 4925-0799-6815/024036-0105 to inspect the Project or the rehabilitation or construction work or to make any independent investigation with respect to the matters set forth in any Written Requisition or other statements, orders, certifications and approvals received by the Fiscal Agent. The Fiscal Agent is not required to obtain completion bonds, lien releases or otherwise supervise the acquisition, rehabilitation, construction, equipping, improvement and installation of the Project. (b) Upon receipt of each Written Requisition submitted by the Borrower and approved in writing by the Funding Lender, the Fiscal Agent shall promptly, but in any case within three Business Days, make payment from the appropriate Account within the Project Fund in accordance with such Written Requisition. The Fiscal Agent shall have no duty to determine whether any requested disbursement from the Project Fund complies with the terms, conditions and provisions of the Funding Loan Documents, constitutes payment of Qualified Project Costs or complies with the 97% Requirement. The approval in writing of a Written Requisition by the Funding Lender shall be deemed a certification and, insofar as the Fiscal Agent and the Governmental Lender are concerned, shall constitute conclusive evidence that all of the terms, conditions and requirements of the Funding Loan Documents applicable to such disbursement have been fully satisfied or waived and the Written Requisition from the Borrower shall, insofar as the Fiscal Agent and the Governmental Lender, as applicable, are concerned, constitute conclusive evidence that the costs described in the Written Requisition constitute Qualified Project Costs or other permitted Project costs. The Fiscal Agent shall provide Written Notice to the Borrower, the Funding Lender and the Governmental Lender if there are not sufficient funds available to or on deposit with the Fiscal Agent to make the disbursements as and when required by this Section 7.7(b). Except as provided in the next sentence, all such payments shall be made by check or draft payable, or by wire transfer, either: (i) directly to the person, firm or corporation to be paid; (ii) to the Borrower and such person, firm or corporation; or (iii) upon receipt by the Funding Lender of evidence that the Borrower has previously paid such amount and Written Direction to the Fiscal Agent as to such as evidenced by the Funding Lender’s approval of the Written Requisition, to the Borrower. Upon the occurrence of an Event of Default of the Borrower of which the Fiscal Agent has knowledge as provided herein, which is continuing under the Funding Loan Documents, with the Written Consent of the Funding Lender, the Fiscal Agent may apply amounts on deposit in the Project Fund to the payment of pri ncipal of and interest on the Funding Loan. If a Written Requisition signed by the Authorized Borrower Representative and countersigned by an authorized officer of the Funding Lender is received by the Fiscal Agent, the requested disbursement shall be paid by the Fiscal Agent as soon as practicable, but in no event later than three Business Days following receipt thereof by the Fiscal Agent. Upon final disbursement of all amounts on deposit in the Project Fund, the Fiscal Agent shall close the Project Fund. (c) Moneys deposited to the Negative Arbitrage Account of the Project Fund pursuant to the Contingency Draw-Down Agreement, together with investment earnings thereon, which shall be retained therein, shall be transferred to the Funding Loan Payment Fund and applied pursuant to Section 7.4 on each Borrower Loan Payment Date to the extent necessary to enable the Fiscal Agent to pay interest due on the Funding Loan on such date. The transfer of moneys from the Negative Arbitrage Account of the Project Fund to the Funding Loan Payment Fund shall occur automatically without the need for a Written Requisition of the Borrower, or consent of the Funding Lender. (d) Amounts on deposit in the Borrower Equity Account of the Project Fund shall be disbursed from time to time by the Fiscal Agent to pay designated amounts as set forth in and upon Page 470 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 24 4925-0799-6815/024036-0105 receipt of a Written Requisition of the Borrower signed by an Authorized Borrower Representative and the Funding Lender. (e) Prior to any mandatory prepayment of the Funding Loan pursuant to the terms hereof, any amounts then remaining in the Project Fund shall, at the written direction of the Funding Lender, be transferred to the Funding Loan Payment Fund to be applied to the prepayment of the Funding Loan pursuant hereto. Section 7.8 Rebate Fund. (a) The Fiscal Agent shall deposit or transfer to the credit of the Rebate Fund each amount delivered to the Fiscal Agent by the Borrower for deposit thereto and each amount directed by the Borrower to be transferred thereto. (b) Within 15 days after each receipt or transfer of funds to the Rebate Fund, the Fiscal Agent shall withdraw from the Rebate Fund and pay to the United States of America the entire balance of the Rebate Fund. (c) All payments to the United States of America pursuant to this Section shall be made by the Fiscal Agent for the account and in the name of the Governmental Lender and shall be paid through the United States Mail (return receipt requested or overnight delivery), addressed to the appropriate Internal Revenue Service Center and accompanied by the appropriate Internal Revenue Service forms (such completed and signed forms to be provided to the Fiscal Agent by the Borrower or the Rebate Analyst). (d) The Fiscal Agent shall preserve all statements, forms and explanations received from the Borrower and delivered to the Fiscal Agent and all records of transactions in the Rebate Fund until six years after the retirement of the Governmental Lender Note. (e) The Fiscal Agent may conclusively rely on the instructions of the Borrower (based upon the report of the Rebate Analyst) with regard to any actions to be taken by it pursuant to this Section and shall have no liability for any consequences of any failure of the Borrower or the Rebate Analyst to perform its duties or obligations or to supply accurate or suffi cient instructions. Except as specifically provided in subsection (b) above, the Fiscal Agent shall have no duty or responsibility with respect to the Rebate Fund or the Borrower’s duties and responsibilities with respect thereto except to follow the Borrower’s specific written instruction related thereto. (f) If at any time during the term of this Funding Loan Agreement the Governmental Lender or the Borrower desires to take any action that would otherwise be prohibited by the terms of this Section, such person shall be permitted to take such action if it shall first obtain and provide to the other persons named herein, a Tax Counsel No Adverse Effect Opinion and an opinion of Tax Counsel that such action shall be in compliance with the laws of the State and t he terms of this Funding Loan Agreement. (g) Moneys and securities held by the Fiscal Agent in the Rebate Fund shall not be deemed funds of the Governmental Lender and are not pledged or otherwise subject to any security interest in favor of the Owners to secure the Governmental Lender Note or any other obligations. Page 471 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 25 4925-0799-6815/024036-0105 (h) Moneys in the Rebate Fund may be separately invested and reinvested by the Fiscal Agent, at the request of and as directed in writing by the Borrower, in Permitted Investments, subject to the Code. The Fiscal Agent shall sell and reduce to cash a sufficient amount of such Permitted Investments, as directed in writing by the Borrower, whenever the cash balance in the Rebate Fund is insufficient for its purposes. (i) Notwithstanding anything to the contrary in this Funding Loan Agreement, no payment shall be made by the Fiscal Agent to the United States if the Borrower shall furnish to the Governmental Lender and the Fiscal Agent an opinion of Tax Counsel to the effect that such payment is not required under Section 148(d) and (f) of the Code in order to maintain the exclusion from gross income for federal income tax purposes of interest on the Governmental Lender Note. In such event the Borrower shall be entitled to withdraw funds from the Rebate Fund to the extent the Borrower shall provide a Tax Counsel No Adverse Effect Opinion to the Governmental Lender and the Fiscal Agent with respect to such withdrawal. (j) The Fiscal Agent shall keep and make available to the Governmental Lender and the Borrower records concerning the investments of all funds held by the Fiscal Agent pursuant to the Funding Loan Agreement including date bought and sold, price and commission paid, and bids taken, if any, and shall keep all such records until six years after the date on w hich neither of the Governmental Lender Note is Outstanding in order to enable the Borrower to make the computations required under Section 148(f) of the Code. (k) Notwithstanding the foregoing, the computations and payments of rebate amounts referred to in this Section 7.8 need not be made to the extent that neither the Governmental Lender nor the Borrower will thereby fail to comply with any requirements of Section 148(f) of the Code based on a Tax Counsel No Adverse Effect Opinion, a copy of which shall be p rovided to the Fiscal Agent and the Governmental Lender. In the event of any conflict between the requirements of this Section 7.8 and those of the Tax Certificate, the Tax Certificate shall control. Section 7.9 Investments. In all cases, subject to Section 7.2 hereof: (a) Amounts on deposit in the Project Fund shall be invested in Permitted Investments directed in writing by the Borrower. Investment Income earned on amounts on deposit in each account of the Project Fund shall be retained in and credited to and become a part of the amounts on deposit in that account of the Project Fund. (b) Amounts on deposit in the Funding Loan Payment Fund, Expense Fund, Rebate Fund and Closing Costs Fund shall be invested in Permitted Investments directed in writing by the Borrower. Investment Income earned on amounts on deposit in each account of the Funding Loan Payment Fund, Expense Fund, Rebate Fund and Closing Costs Fund shall be retained in and credited to and become a part of the amounts on deposit in that account of the Funding Lo an Payment Fund, Expense Fund, Rebate Fund and Closing Costs Fund. The Fiscal Agent may make any and all investments permitted under this Funding Loan Agreement through its own trust or banking department or any affiliate and may pay said department reasonable, customary fees for placing such investments. The Fiscal Agent and its affiliates may act as principal, agent, sponsor, advisor or depository with respect to Permitted Investments under this Funding Loan Agreement. The Fiscal Agent shall not be liable for any losses from investments made by the Fiscal Agent in accordance with this Funding Loan Agreement. Page 472 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 26 4925-0799-6815/024036-0105 The Governmental Lender, the Funding Lender and the Borrower (by its execution of the Borrower Loan Agreement) acknowledge that to the extent regula tions of the Comptroller of the Currency or other applicable regulatory entity grant the Governmental Lender or the Funding Lender the right to receive brokerage confirmations of security transactions as they occur, the Governmental Lender and the Funding Lender will not receive such confirmations to the extent permitted by law. The Fiscal Agent shall furnish the Borrower, the Funding Lender and the Governmental Lender (to the extent requested by such parties) periodic cash transaction statements which sha ll include detail for all investment transactions, if any, made by the Fiscal Agent hereunder. ARTICLE VIII REPRESENTATIONS AND COVENANTS Section 8.1 General Representations. The Governmental Lender makes the following representations as the basis for the undertakings on its part herein contained: (a) The Governmental Lender is a public body corporate and politic, organized and existing under the laws of the State, has the power and authority to (i) enter into the Funding Loan Documents to which it is a party and the transactions contemplated thereby, (ii) incur the limited obligation represented by the Governmental Lender Note and the Funding Loan, and apply the proceeds of such obligation or loan to finance the Project, and (iii) carry out its other obligations under this Funding Loan Agreement and the Governmental Lender Note, and by proper action has duly authorized the Governmental Lender’s execution and delivery of, and its performance under, the Funding Loan Documents to which it is a party. (b) The Governmental Lender is not in default under or in violation of, and the execution and delivery of the Funding Loan Documents to which it is a party and its compliance with the terms and conditions thereof will not conflict or constitute a default under or a violation of, (i) the Act, (ii) to its knowledge, any other existing laws, rules, regulations, judgments, decrees and orders applicable to it, or (iii) to its knowledge, the provisions of any agreements and instruments to which the Governmental Lender is a party, a default under or violation of which would prevent it from entering into the Funding Loan Agreement, executing and delivering the Governmental Lender Note, financing the Project, executing and delivering the other Funding Loan Documents to which it is a party or consummating the transactions on its part contemplated thereby, and, to its knowledge, no event has occurred and is continuing under the provisions of any such agreement or instrument or otherwise that with the lapse of time or the giving of notice, or both, would constitute such a default or violation (it being understood, however, that the Governmental Lender is making no representations as to the necessity of registering the Governmental Lender Note or the Borrower Note pursuant to any securities laws or complying with any other requirements of securities laws). (c) To the best knowledge of the Governmental Lender, no litigation, inquiry or investigation of any kind in or by any judicial or administrative court or agency is pending with respect to which the Governmental Lender has been served with process or, to the knowledge of the Governmental Lender, is threatened against the Governmental Lender with respect to (i) the organization and existence of the Governmental Lender, (ii) its authority to execute or deliver the Funding Loan Documents to which it is a party, (iii) the validity or enforceability of any such Funding Loan Documents or the transactions contemplated thereby, (iv) the title of any officer of the Governmental Lender who executed such Funding Loan Documents or (v) any authority or proceedings relating to the execution and delivery of such Funding Loan Documents on behalf of the Page 473 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 27 4925-0799-6815/024036-0105 Governmental Lender, and no such authority or proceedings have been repealed, revoked, rescinded or amended but are in full force and effect. (d) The revenues and receipts to be derived from the Borrower Loan Agreement, the Borrower Note and this Funding Loan Agreement have not been pledged previously by the Governmental Lender to secure any of its notes or bonds other than the Funding Loan Agreement as evidenced by the Governmental Lender Note. THE GOVERNMENTAL LENDER MAKES NO REPRESENTATION, COVENANT OR AGREEMENT AS TO THE FINANCIAL POSITION OR BUSINESS CONDITION OF THE BORROWER OR THE PROJECT AND DOES NOT REPRESENT OR WARRANT AS TO ANY STATEMENTS, MATERIALS, REPRESENTATIONS OR CERTIFICATIONS FURNISHED BY THE BORROWER IN CONNECTION WITH THE FUNDING LOAN OR THE BORROWER LOAN, OR AS TO THE CORRECTNESS, COMPLETENESS OR ACCURACY THEREOF. Section 8.2 No Encumbrance on Security. The Governmental Lender will not knowingly create or knowingly permit the creation of any mortgage, pledge, lien, charge or encumbrance of any kind on the Security or any part thereof prior to or on a parity with the lien of this Funding Loan Agreement, except as expressly permitted or contemplated by the Funding Loan Documents. Section 8.3 Repayment of Funding Loan. Subject to the provisions of Articles III and V hereof, the Governmental Lender will duly and punctually repay, or cause to be repaid, the Funding Loan, as evidenced by the Governmental Lender Note, as and when the same shall become due, all in accordance with the terms of the Governmental Lender Note and this Funding Loan Agreement. Section 8.4 Servicer. The Funding Lender may appoint a Servicer to service and administer the Funding Loan and/or the Borrower Loan on behalf of the Funding Lender, including without limitation the fulfillment of rights and responsibilities gran ted by Governmental Lender to Funding Lender pursuant to Section 2.1 of the Borrower Loan Agreement. Section 8.5 Borrower Loan Agreement Performance. (a) The Funding Lender and the Servicer, if any, on behalf of the Governmental Lender, may (but shall not be required or obligated to) perform and observe any agreement or covenant of the Governmental Lender under the Borrower Loan Agreement subject to the terms and provisions contained therein, all to the end that the Governmental Lender’s rights under the Borrower Loan Agreement may be unimpaired and free from default. (b) The Governmental Lender will promptly notify the Borrower, the Servicer and the Funding Lender in writing of the occurrence of any Borrower Loan Agreement Default, provided that the Governmental Lender has received written notice or otherwise has knowledge of such event. Section 8.6 Maintenance of Records; Inspection of Records. (a) The Fiscal Agent shall keep and maintain adequate records pertaining to any funds and accounts established hereunder, including all deposits to and disbursements from said funds and accounts and shall keep and maintain the registration books for the Governmental Lender Note and interests therein. The Fiscal Agent shall retain in its possession all certifications and other documents presented to it, all such records and all records of principal, interest and premium paid on Page 474 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 28 4925-0799-6815/024036-0105 the Funding Loan, subject to the inspection of the Funding Lender and the Governmental Lender and their representatives at all reasonable times and upon reasonable prior notice. (b) The Governmental Lender and the Funding Lender will at any and all times, upon the reasonable request of the Servicer, if any, the Borrower, the Fiscal Agent, the Governmental Lender or the Funding Lender, afford and procure a reasonable opportunity by their respective representatives to inspect the books, records, reports and other papers of the Governmental Lender or the Funding Lender, as appropriate, relating to the Project and the Funding Loan, if any, and (at their own expense) to make copies thereof. Section 8.7 Tax Covenants. The Governmental Lender covenants to and for the benefit of the Funding Lender that, notwithstanding any other provisions of this Funding Loan Agreement or of any other instrument, it will: (a) Require the Borrower to execute the Regulatory Agreement as a condition of funding the Borrower Loan; (b) Not take or cause to be taken any action or actions, or fail to take any action or actions, which would cause the interest payable on the Governmental Lender Note to be includable in gross income for federal income tax purposes; (c) Whenever and so often as requested in writing by Funding Lender, the Governmental Lender (at the sole cost and expense of the Borrower), shall do and perform all acts and things permitted by law and necessary or desirable in order to assure that interest paid by the Governmental Lender on the Governmental Lender Note will be excluded from the gross income of the Noteowner, for federal income tax purposes, pursuant to Section 103 of the Code, except in the event where any owner of the Governmental Lender Note or a portion thereof is a “substantial user” of the facilities financed with the Funding Loan or a “related person” within the meaning of Section 147(a) of the Code; (d) Not take any action nor, solely in reliance upon the covenants and representations of the Borrower in the Borrower Loan Agreement, in the Regulatory Agreement and in the Tax Certificate, knowingly permit or suffer any action to be taken if the result of the same would be to cause the Governmental Lender Note to be “federally guaranteed” within the meaning of Section 149(b) of the Code and the Regulations; (e) Require the Borrower to agree, solely by causing the Borrower to execute and deliver the Borrower Loan Agreement, not to commit any act and not to make any use of the proceeds of the Funding Loan, or any other moneys which may be deemed to be proceeds of the Funding Loan pursuant to the Code, which would cause the Governmental Lender Note to be “arbitrage bonds” within the meaning of Sections 103(b) and 148 the Code, and to comply with the requirements of the Code throughout the term of the Funding Loan; and (f) Require the Borrower, solely by causing the Borrower to execute and deliver the Borrower Loan Agreement, to take all steps necessary to compute and pay any rebatable arbitrage in accordance with Section 148(f) of the Code. In furtherance of the covenants in this Section 8.7, the Governmental Lender and the Borrower shall execute, deliver and comply with the provisions of the Tax Certificate (it being understood that Page 475 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 29 4925-0799-6815/024036-0105 the obligations of the Fiscal Agent with respect to the Tax Certificate are to follow the written directions of the Governmental Lender or Borrower, and that the Fiscal Agent shall not be responsible for monitoring the compliance of the Governmental Lender or Borrower therewith), which are by this reference incorporated into this Funding Loan Agreement and made a part of this Funding Loan Agreement as if set forth in this Funding Loan Agreement in full. In the event of any conflict between this Funding Loan Agreement and the Tax Certificate, the requirements of the Tax Certificate shall control. For purposes of this Section 8.7 the Governmental Lender’s compliance shall be based solely on matters within the Governmental Lender’s knowledge and control and no acts, omissions or directions of the Borrower, the Funding Lender or any other Persons shall be attributed to the Governmental Lender. In complying with the foregoing covenants, the Governmental Lender may rely from time to time on a Tax Counsel No Adverse Effect Opinion or other appropriate opinion of Tax Counsel. Section 8.8 Performance by the Borrower. Without relieving the Governmental Lender from the responsibility for performance and observance of the agreements and covenants required to be performed and observed by it hereunder, the Borrower, on behalf of the Governmental Lender, may (but is under no obligation to) perform any such agreement or covenant if no Borrower Loan Agreement Default or Potential Default under (and as such term is defined in) the Borrowe r Loan Agreement exists. ARTICLE IX DEFAULT; REMEDIES Section 9.1 Events of Default. Any one or more of the following shall constitute an event of default (an “Event of Default”) under this Funding Loan Agreement (whatever the reason for such event and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or Governmental Authority): (a) A default in the payment of any interest upon the Governme ntal Lender Note when such interest becomes due and payable; (b) A default in the payment of principal of, or premium on, the Governmental Lender Note when such principal or premium becomes due and payable, whether at its stated maturity, by declaration of acceleration or call for mandatory prepayment or otherwise; (c) Subject to Section 8.8 hereof, default in the performance or breach of any material covenant or warranty of the Governmental Lender in this Funding Loan Agreement (other than a covenant or warranty or default in the performance or breach of which is elsewhere in this Section specifically dealt with), and continuance of such default or breach for a period of 30 days after there has been given written notice, as provided in Section 12.1 hereof, to the Governmental Lender and the Borrower by the Funding Lender or the Servicer, specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” under this Funding Loan Agreement; provided that, so long as the Governmental Lender has commenced to cure such failure to observe or perform within the thirty (30) day cure period, the subject matter of the default is Page 476 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 30 4925-0799-6815/024036-0105 not capable of cure within said thirty (30) day period and the Governmental Lender is diligently pursuing such cure to the Funding Lender’s satisfaction, with the Funding Lender’s Written Direction or Written Consent, then the Governmental Lender shall have an additional period of time as reasonably necessary (not to exceed 30 days unless extended in writing by the Funding Lender) within which to cure such default; (d) A default in the payment of any Additional Borrower Payments; or (e) Any other “Default” or “Event of Default” under any of the other Funding Loan Documents (taking into account any applicable grace periods therein). Section 9.2 Acceleration of Maturity; Rescission and Annulment. (a) Subject to the provisions of Section 9.9 hereof, upon the occurrence of an Event of Default under Section 9.1 hereof, then and in every such case, the Funding Lender may declare the principal of the Funding Loan and the Governmental Lender Note and the interest accrued to be immediately due and payable, by notice to the Governmental Lender, Borrower and the Equity Investor, and upon any such declaration, all principal of and Prepayment Premium, if any, and interest on the Funding Loan and the Governmental Lender Note shall become immediately due and payable. (b) At any time after a declaration of acceleration has been made pursuant to subsection (a) of this Section, the Funding Lender may by Written Notice to the Governmental Lender rescind and annul such declaration and its consequences if: (i) there has been deposited with the Funding Lender a sum sufficient to pay (1) all overdue installments of interest on the Funding Loan, (2) the principal of and Prepayment Premium on the Funding Loan that has become due otherwise than by such declaration of acceleration and interest thereon at the rate or rates prescribed therefor in the Funding Loan, (3) to the extent that payment of such interest is lawful, interest upon overdue installments of interest at the rate or rates prescribed therefor in the Funding Loan, and (4) all sums paid or advanced by the Funding Lender and the reasonable compensation, expenses, disbursements and advances of the Funding Lender, its agents and counsel (but only to the extent not duplicative with subclauses (1) and (3) above); and (ii) all Events of Default, other than the non-payment of the principal of the Funding Loan that has become due solely by such declaration of acceleration, have been cured or have been waived in writing as provided in Section 9.9 hereof. No such rescission and annulment shall affect any subsequen t default or impair any right consequent thereon. (c) Notwithstanding the occurrence and continuation of an Event of Default, it is understood that the Funding Lender shall pursue no remedies against the Borrower, any of the Borrower’s partners or the Project if no Borrower Loan Agreement Default has occurred and is continuing. An Event of Default hereunder shall not in and of itself constitute a Borrower Loan Agreement Default. (d) Nothwithstanding any provision herein to the contrary, the Governmental Lender and the Funding Lender agree that any cure of any default made or tendered by the Equity Page 477 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 31 4925-0799-6815/024036-0105 Investor and/or its affiliated special limited partner shall be deemed to be a cure by the Borrower and shall be accepted or rejected on the same basis as if made or tend ered by the Borrower. Section 9.3 Additional Remedies; Funding Lender Enforcement. (a) Upon the occurrence of an Event of Default, the Funding Lender may, subject to the provisions of this Section 9.3 and Section 9.9 hereof, proceed to protect and enforce its rights by mandamus or other suit, action or proceeding at law or in equity. No remedy conferred by this Funding Loan Agreement upon or remedy reserved to the Funding Lender is intended to be exclusive of any other remedy, but each such remedy shall be cumulative and shall be in addition to any other remedy given to the Funding Lender hereunder or now or hereafter existing at law or in equity or by statute. (b) Upon the occurrence and continuation of any Event of Default, the Funding Lender may proceed forthwith to protect and enforce its rights and this Funding Loan Agreement by such suits, actions or proceedings as the Funding Lender, in its sole discretion, shall deem expedient. Funding Lender shall have upon the occurrence and continuation of any Event of Default all r ights, powers, and remedies with respect to the Security as are available under the Uniform Commercial Code applicable thereto or as are available under any other applicable law at the time in effect and, without limiting the generality of the foregoing, the Funding Lender may proceed at law or in equity or otherwise, to the extent permitted by applicable law: (i) to take possession of the Security or any part thereof, with or without legal process, and to hold, service, administer and enforce any rights thereu nder or thereto, and otherwise exercise all rights of ownership thereof, including (but not limited to) the sale of all or part of the Security; (ii) to become mortgagee of record for the Borrower Loan including, without limitation, completing the assignment of the Security Instrument by the Governmental Lender to the Funding Lender as anticipated by this Funding Loan Agreement, and recording the same in the real estate records of the jurisdiction in which the Project is located, without further act or consent o f the Governmental Lender, and to service and administer the same for its own account; (iii) to service and administer the Funding Loan as agent and on behalf of the Governmental Lender or otherwise, and, if applicable, to take such actions necessary to enforce the Borrower Loan Documents and the Funding Loan Documents on its own behalf, and to take such alternative courses of action, as it may deem appropriate; or (iv) to take such steps to protect and enforce its rights whether by action, suit or proceeding in equity or at law for the specific performance of any covenant, condition or agreement in the Governmental Lender Note, this Funding Loan Agreement or the other Funding Loan Documents, or the Borrower Loan Documents, or in and of the execution of any power herein granted, or for foreclosure hereunder, or for enforcement of any other appropriate legal or equitable remedy or otherwise as the Funding Lender may elect. (c) Whether or not an Event of Default has occurred, the Funding Lender, in its sole discretion, shall have the sole right to waive or forbear from enforcing any term, condition, covenant or agreement of the Security Instrument, the Borrower Loan Agreement, the Borrower Note or any other Borrower Loan Documents or Funding Loan Documents applicable to the Bo rrower, or any breach thereof, other than a covenant that would adversely impact the tax -exempt status of the Page 478 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 32 4925-0799-6815/024036-0105 interest on the Governmental Lender Note, and provided that the Governmental Lender may seek specific performance by the Borrower to enforce the Unassigned Rights; provided, however, that any such forbearance by the Funding Lender in the exercise of its remedies under the Funding Loan Documents shall not be construed as a waiver by the Funding Lender of any Conditions to Conversion. (d) If the Borrower defaults in the performance or observance of any covenant, agreement or obligation of the Borrower set forth in the Regulatory Agreement, and if such default remains uncured for a period of 60 days after the Borrower, the Equity Investor and the Funding Le nder receive Written Notice stating that a default under the Regulatory Agreement has occurred and specifying the nature of the default, the Funding Lender shall have the right to seek specific performance of the provisions of the Regulatory Agreement or t o exercise its other rights or remedies thereunder. (e) If the Borrower defaults in the performance of its obligations under the Borrower Loan Agreement (subject to applicable notice and cure periods) to make rebate payments, to comply with any applicable continuing disclosure requirements, or to make payments owed pursuant to Sections 2.5, 5.14 or 5.15 of the Borrower Loan Agreement for fees, expenses or indemnification, the Funding Lender shall have the right to exercise all its rights and remedies thereunder (subject to the last paragraph of Section 9.14 hereof). Section 9.4 Application of Money Collected. Any money collected by the Funding Lender pursuant to this Article and any other sums then held by the Funding Lender as part of the Security, shall be applied in the following order, at the date or dates fixed by the Funding Lender: (a) First: To the payment of any and all amounts due under the Funding Loan Documents other than with respect to principal and interest accrued on the Funding Loan, including, without limitation, any amounts due to the Governmental Lender, the Funding Lender, the Servicer, the Fiscal Agent and the Rebate Analyst; (b) Second: To the payment of the whole amount of the Funding Loan, as evidenced by the Governmental Lender Note, then due and unpaid in respect of which or for the benefit of which such money has been collected, with interest (to the extent that such interest has been collected or a sum sufficient therefor has been so collected and payment thereof is legally enforceable at the respective rate or rates prescribed therefor in the Funding Loan) on overdue principal of, and Prepayment Premium and overdue installments of interest on the Funding Loan; provided, however, that partial interests in any portion of the Funding Loan shall be paid in such order of priority as may be prescribed by Written Direction of the Funding Lender in its sole and absolute discretion; and (c) Third: The payment of the remainder, if any, to the Borrower or to whosoever may be lawfully entitled to receive the same or as a court of competent jurisdiction may direct. If and to the extent this Section 9.4 conflicts with the provisions of the Servicing Agreement, the provisions of the Servicing Agreement shall control. Capitalized terms used in this Section 9.4 but not otherwise defined in this Funding Loan Agreement shall have the meanings given such terms in the Servicing Agreement. Section 9.5 Remedies Vested in Funding Lender. All rights of action and claims under this Funding Loan Agreement or the Governmental Lender Note may be prosecuted and enforced by Page 479 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 33 4925-0799-6815/024036-0105 the Funding Lender without the possession of the Governmental Lender Note or the production thereof in any proceeding relating thereto. Section 9.6 Restoration of Positions. If Funding Lender shall have instituted any proceeding to enforce any right or remedy under this Funding Loan Agreement and such proceeding shall have been discontinued or abandoned for any reason or shall have been determined adversely to the Funding Lender, then and in every such case the Governmental Lender and the Funding Lender shall, subject to any determination in such proceeding, be restored to their former positions hereunder, and thereafter all rights and remedies of the Governmental Lender and the Funding Lender shall continue as though no such proceeding had been instituted. Section 9.7 Rights and Remedies Cumulative. No right or remedy herein conferred upon or reserved to the Funding Lender is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. Section 9.8 Delay or Omission Not Waiver. No delay or omission of the Funding Lender to exercise any right or remedy accruing upon an Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Funding Lender may be exercised from time to time, and as often as may be deemed expedient, by Funding Lender. No waiver of any d efault or Event of Default pursuant to Section 9.9 hereof shall extend to or shall affect any subsequent default or Event of Default hereunder or shall impair any rights or remedies consequent thereon. Section 9.9 Waiver of Past Defaults. Before any judgment or decree for payment of money due has been obtained by the Funding Lender, the Funding Lender may, subject to Section 9.6 hereof, by Written Notice to the Governmental Lender and the Borrower, waive any past default hereunder or under the Borrower Loan Agreement and its consequences except for default in obligations due the Governmental Lender pursuant to or under the Unassigned Rights. Upon any such waiver, such default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Funding Loan Agreement and the Borrower Loan Agreement; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon. Section 9.10 Remedies Under Borrower Loan Agreement or Borrower Note. As set forth in this Section 9.10 but subject to Section 9.9 hereof, the Funding Lender shall have the right, in its own name or on behalf of the Governmental Lender, to declare any default and exercise any remedies under the Borrower Loan Agreement or the Borrower Note, whether or not the Governmental Lender Note has been accelerated or declared due and payable by reason of an Event of Default. Section 9.11 Waiver of Appraisement and Other Laws. (a) To the extent permitted by law, the Governmental Lender will not at any tim e insist upon, plead, claim or take the benefit or advantage of, any appraisement, valuation, stay, extension or redemption law now or hereafter in force, in order to prevent or hinder the enforcement of this Funding Loan Agreement; and the Governmental Lender, for itself and all who may claim under it, so far as it or they now or hereafter may lawfully do so, hereby waives the benefit of all such laws. Page 480 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 34 4925-0799-6815/024036-0105 The Governmental Lender, for itself and all who may claim under it, waives, to the extent that it may lawfully do so, all right to have the property in the Security marshaled upon any enforcement hereof. (b) If any law now in effect prohibiting the waiver referred to in clause (a) shall hereafter be repealed or cease to be in force, such law shall not thereafter be deemed to constitute any part of the contract herein contained or to preclude the application of this Section 9.11. Section 9.12 Suits to Protect the Security. The Funding Lender shall have power to institute and to maintain such proceedings as it may deem expedient to prevent any impairment of the Security by any acts that may be unlawful or in violation of this Funding Loan Agreement and to protect its interests in the Security and in the rents, issues, profits, revenues and other income arising therefrom, including power to institute and maintain proceedings to restrain the enforcement of or compliance with any Governmental Authority enactment, rule or order that may be unconstitutional or otherwise invalid, if the enforcement of or compliance with such en actment, rule or order would impair the security hereunder or be prejudicial to the interests of the Funding Lender. Section 9.13 Remedies Subject to Applicable Law. All rights, remedies and powers provided by this Article may be exercised only to the extent that the exercise thereof does not violate any applicable provision of law in the premises, and all the provisions of this Article are intended to be subject to all applicable mandatory provisions of law which may be controlling in the premises and to be limited to the extent necessary so that they will not render this Funding Loan Agreement invalid, unenforceable or not entitled to be recorded, registered or filed under the provisions of any applicable law. Section 9.14 Assumption of Obligations. In the event that the Funding Lender or its assignee or designee shall become the legal or beneficial owner of the Project by foreclosure or deed in lieu of foreclosure, such party shall succeed to the rights and the obligations of the Borrower under the Borrower Loan Agreement, the Borrower Note, the Regulatory Agreement and any other Funding Loan Documents to which the Borrower is a party. Such assumption shall be effective from and after the effective date of such acquisition and shall be made with the benefit of the limitations of liability set forth therein and without any liability for the prior acts of the Borrower. It is the intention of the parties hereto that upon the occurrence and continuance of an Event of Default hereunder, rights and remedies may be pursued pursuant to the terms of the Funding Loan Documents. ARTICLE X AMENDMENT; AMENDMENT OF BORROWER LOAN AGREEMENT AND OTHER DOCUMENTS Section 10.1 Amendment of Funding Loan Agreement. Any of the terms of this Funding Loan Agreement and the Governmental Lender Note may be amended or waived only by an instrument signed by the Funding Lender and the Governmental Lender, provided, however, no such amendment which materially affects the rights, duties, obligations or other interests of the Borrower or Fiscal Agent shall be made without the consent of the Borrower or Fiscal Agent, as applicable, and, provided further, that if the Borrower is in default under any Funding Loan Document, no Borrower consent shall be required unless such amendment has an adverse effect on the rights, duties, obligations or other interests of the Borrower. All of the terms of this Funding Loan Agreement shall be binding upon the Page 481 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 35 4925-0799-6815/024036-0105 successors and assigns of and all persons claiming under or through the Governmental Lender or any such successor or assign, and shall inure to the benefit of and be enforceable by the successors and assigns of the Funding Lender. Section 10.2 Amendments Require Funding Lender Consent. The Governmental Lender shall not consent to any amendment, change or modification of the Borrower Loan Agreement or any other Borrower Loan Document or Funding Loan Document without the prior Written Consent of the Funding Lender. Section 10.3 Consents and Opinions. No amendment to this Funding Loan Agreement or any other Funding Loan Document entered into under this Article X or any amendment, change or modification otherwise permitted under this Article X shall become effective unless and until (i) the Funding Lender shall have approved the same in writing in its sole discretion and (ii) the Funding Lender shall have received, at the expense of the Borrower, a Tax Counsel No Adverse Effect Opinion and an Opinion of Counsel substantially to the effect that any such proposed amendment is authorized and complies with the provisions of this Funding Loan Agreement. ARTICLE XI THE FISCAL AGENT Section 11.1 Appointment of Fiscal Agent; Acceptance. The Governmental Lender hereby appoints Fiscal Agent as fiscal agent hereunder. The Fiscal Agent shall signify its acceptance of the duties and obligations imposed upon it by this Funding Loan Agreement by executing this Funding Loan Agreement. Section 11.2 Certain Duties and Responsibilities of Fiscal Agent. (a) The Fiscal Agent undertakes to perform such duties and only such duties as are specifically and expressly set forth in this Funding Loan Agreement. These duties shall be deemed purely ministerial in nature, and the Fiscal Agent shall not be liable except for the performance of such duties, and no implied covenants or obligations shall be read into this Funding Loan Agreement against the Fiscal Agent. (b) If an event of default exists hereunder or under any Borrower Loan Document, the Fiscal Agent shall exercise such of the rights and powers vested in it by this Funding Loan Agreement, and exercise any rights or duties or remedies solely at the written direction of the Funding Lender, subject to Section 11.2(c)(iii) hereof, using the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of their own affairs. (c) No provision of this Funding Loan Agreement shall be construed to relieve the Fiscal Agent from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, in each case, as finally adjudicated on a non-appealable basis by a court of competent jurisdiction, except that: (i) This subsection shall not be construed to limit the effect of subsection (a) of this Section; Page 482 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 36 4925-0799-6815/024036-0105 (ii) The Fiscal Agent shall not be liable for any actions taken or errors of judgment made in good faith by it or any of its officers, employees or agents, unless it shall be proved that the Fiscal Agent was negligent in ascertaining the pertinent facts, as finally adjudicated on a non - appealable basis by a court of competent jurisdiction; (iii) The Fiscal Agent shall not be liable with respect to any action taken or omitted to be taken by it in accordance with the direction of the Funding Lender relating to the time, method and place of conducting any proceeding for any remedy available to the Fiscal Agent, or exercising any power conferred upon the Fiscal Agent under this Funding Loan Agreement; (iv) No provision of this Funding Loan Agreement shall require the Fiscal Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers; (v) In no event shall the Fiscal Agent be responsible or liable for special, indirect, punitive, incidental or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Fiscal Agent has been advised of the likelihood of such loss or damage and regardless of the form of action; and (vi) Subject to its rights to indemnification pursuant to Section 11.4 hereof, the Fiscal Agent is directed to enter into the Borrower Loan Documents to which it is a party and other related documents (including the Regulatory Agreement), solely in its capacity as Fiscal Agent. (d) Whether or not therein expressly so provided, every provision of this Funding Loan Agreement and the other Funding Loan Docum ents relating to the conduct or affecting the liability of or affording protection to the Fiscal Agent shall be subject to the provisions of this Section. (e) The Fiscal Agent may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Fiscal Agent and conforming to the requirements of this Funding Loan Agreement; but in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Fiscal Agent, the Fiscal Agent shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Funding Loan Agreement. (f) The permissive rights of the Fiscal Agent to do things enum erated in this Funding Loan Agreement shall not be construed as a duty, and, with respect to such permissive rights, the Fiscal Agent shall not be answerable for other than its negligence or willful misconduct, as finally adjudicated on a non-appealable basis by a court of competent jurisdiction. Section 11.3 Notice of Defaults. Upon the occurrence of any default hereunder or under any Borrower Loan Document and provided that a Responsible Officer of the Fiscal Agent has actual knowledge or has received Written Notice of the existence of such default, promptly, and in any event within 15 days, the Fiscal Agent shall transmit to the Governmental Lender, the Borrower, the Equity Investor, the Servicer, if any, and the Funding Lender, in the manner and at the addresses for notices set forth in Section 12.1 hereof, notice of such default hereunder known to the Fiscal Agent pursuant to Section 11.4(g) hereof, unless such default shall have been cured or waived. Page 483 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 37 4925-0799-6815/024036-0105 Section 11.4 Certain Rights of Fiscal Agent. Except as otherwise provided in Section 11.1 hereof: (a) The Fiscal Agent may conclusively rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, judgment, decree, bond, note, debenture, coupon or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties, not only as to due execution, validity and effectiveness, but also as to the truth and accuracy of any information contained therein. (b) Any request or direction of the Governmental Lender mentioned herein shall be sufficiently evidenced by a certificate or order executed by an Authorized Governmental Lender Representative. (c) Whenever in the administration of this Funding Loan Agreement, the Regulatory Agreement or any Borrower Loan Document the Fiscal Agent shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Fiscal Agent (unless other evidence be herein specifically prescribed) may conclusively rely upon a Written Certificate of the Governmental Lender, the Funding Lender, the Servicer or the Borrower, as appropriate. (d) The Fiscal Agent shall be under no obligation to exercise any of the r ights or powers vested in it by this Funding Loan Agreement or any Borrower Loan Document at the request or direction of the Funding Lender, pursuant to this Funding Loan Agreement, unless the Funding Lender shall have offered to the Fiscal Agent in writing security or indemnity (satisfactory to the Fiscal Agent in its sole and absolute discretion) against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction, except costs, expenses and liabilities wh ich are finally adjudicated on a non-appealable basis by a court of competent jurisdiction to have directly resulted from its own negligence or willful misconduct, provided, that nothing contained in this subparagraph (d) shall be construed to require such security or indemnity for the performance by the Fiscal Agent of its obligations under Article VII hereof. (e) The Fiscal Agent shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument , opinion, report, notice, request, direction, consent, order, bond, note, debenture, coupon or other paper or document but the Fiscal Agent, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Fiscal Agent shall determine to make such further inquiry or investigation, it shall be entitled to examine the books and records of the Governmental Lender, if any, and of the Borrower, in either case personally or by agent or attorney after rea sonable notice and during normal business hours. (f) The Fiscal Agent may execute any of its powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and pay reasonable compensation thereto and the Fiscal Agent shall not be responsible for any acts or omissions of any such agent or attorney appointed with due care by it hereunder. The Fiscal Agent may, at the expense of the Borrower, request, rely and act in accordance with officer’s certificates and the advice and opinion of counsel of its choice concerning all matters hereof and the Fiscal Agent shall not be responsible for any loss or damage resulting from any action or inaction taken in respect of said certificates, and, in good faith, such advice or opinions. Page 484 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 38 4925-0799-6815/024036-0105 (g) The Fiscal Agent shall not be required to take notice or be deemed to have notice of any default hereunder or under any Borrower Loan Document except for failure by the Borrower to make payments under Section 9.1(a) or (b) hereof, or deposit amounts with the Fiscal Agent sufficient to pay the Ongoing Governmental Lender Fee when due, unless a Responsible Officer of the Fiscal Agent shall be specifically notified by a Written Direction of such default by the Governmental Lender, the Servicer or the Funding Lender, and all notices or other instruments required by this Funding Loan Agreement or under any Borrower Loan Document to be delivered to the Fiscal Agent, must, in order to be effective, be delivered in writing to a Responsible Officer of the Fiscal Agent at the Office of the Fiscal Agent, and in the absence of such Written Notice so delivered the Fiscal Agent may conclusively assume there is no default as aforesaid. (h) All notices, approvals, consents, requests and any communications to the Fiscal Agent hereunder must be in writing in English and must be in the form of a document that is signed manually or by way of an electronic signature (including electronic images of handwritten signatures and digital signatures provided by DocuSign, Orbit, Adobe Sign or a ny other electronic signature provider acceptable to the Fiscal Agent). Electronic signatures believed by the Fiscal Agent to comply with the ESIGN ACT of 2000 or other applicable law shall be deemed original signatures for all purposes. If the parties chooses to use electronic signatures to sign documents delivered to the Fiscal Agent, such parties agree to assume all risks arising out of its use of electronic signatures, including without limitation the risk of the Fiscal Agent acting on an unauthorized d ocument and the risk of interception or misuse by third parties. Notwithstanding the foregoing, the Fiscal Agent may in any instance and in its sole discretion require that an original document bearing a manual signature be delivered to the Fiscal Agent in lieu of, or in addition to, any document signed via electronic signature. (i) In no event shall the Fiscal Agent be responsible or liable for special, indirect, punitive, incidental or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Fiscal Agent has been advised of the likelihood of such loss or damage and regardless of the form of action. (j) The Fiscal Agent shall be entitled to request and receive written instructions from the Governmental Lender or the Funding Lender and shall have no responsibility or liability for any losses or damages of any nature that may arise from any action taken or not taken by the Fiscal Agent in accordance with the written direction of the Governmental Lender or the Funding Lender. The Fiscal Agent shall have the right to accept and act upon instructions or directions, including funds transfer instructions, pursuant to this Funding Loan Agreement sent by Electronic Means (as hereinafter defined); provided, however, that the Fiscal Agent shall have received an incumbency certificate listing designated persons authorized to provide such instructions (“Authorized Officers”), which incumbency certificate shall be amended whenever a person is to be added or d eleted from the listing. As used in this paragraph, “Electronic Means” means a portable document format (“pdf”) or other replicating image attached to an unsecured email, facsimile transmission, secure electronic transmission (containing applicable authorization codes, passwords and/or authentication keys issued by the Fiscal Agent), or another method or system specified by the Fiscal Agent as available for use in connection with its services hereunder. If the parties elects to give the Fiscal Agent instruc tions by Electronic Means and the Fiscal Agent in its discretion elects to act upon such instructions, the Fiscal Agent’s understanding of such instructions shall be deemed controlling. The parties agrees that the Fiscal Agent cannot determine the identity of the actual sender of such instructions and that the Fiscal Agent shall conclusively presume that instructions that purport to have been sent by an Authorized Officer listed on the incumbency certificate provided to the Fiscal Agent have been sent by su ch Authorized Officer. The parties shall be responsible for ensuring that only Authorized Officers transmit Page 485 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 39 4925-0799-6815/024036-0105 such instructions to the Fiscal Agent, and the parties and the Authorized Officers are responsible to safeguard the use and confidentiality of appli cable user and authorization codes, passwords and authentication keys provided by the Fiscal Agent, if any. The Fiscal Agent shall not be liable for any losses, costs, or expenses arising directly or indirectly from the Fiscal Agent’s reliance upon and compliance with such instructions notwithstanding such instructions conflict or are inconsistent with a subsequent written instruction delivered by other means. The parties agrees (i) to assume all risks arising out of the use of such Electronic Means to submit instructions and direction to the Fiscal Agent, including without limitation the risk of the Fiscal Agent acting on unauthorized instructions and the risk of interception and misuse by third parties; (ii) that it is fully informed of the protections an d risks associated with the various methods of transmitting instructions to the Fiscal Agent and that there may be more secure methods of transmitting instructions than the use of Electronic Means; (iii) that the security procedures (if any) to be followed in connection with its transmission of instructions provide to it a commercially reasonable degree of protection in light of its particular needs and circumstances; and (iv) that it will notify the Fiscal Agent immediately upon learning of any compromise or unauthorized use of the security procedures. (k) Neither the Fiscal Agent nor any of its directors, officers, employees, agents or affiliates shall be responsible for nor have any duty to monitor the performance or any action of the Governmental Lender, the Bank the Borrower, or any of their directors, members, officers, agents, affiliates or employee, nor shall it have any liability in connection with the malfeasance or nonfeasance by such party. The Fiscal Agent may assume performance by all such persons of their respective obligations. The Fiscal Agent shall have no enforcement or notification obligations relating to breaches of representations or warranties of any other person. (l) The Fiscal Agent shall not be responsible or liable for any failure or delay in the performance of its obligations under this Agreement arising out of or caused, directly or indirectly, by circumstances beyond its control, including without limitation, any act or provision of any present or future law or regulation or governmental authority; acts of God; earthquakes; fires; floods; wars; terrorism; civil or military disturbances; sabotage; epidemics; quarantine restrictions; riots; interruptions, loss or malfunctions of utilities, computer (hardware or software) or communications service; accidents; labor disputes; acts of civil or military authority or governmental actions; or the unavailability of the Federal Reserve Bank wire or telex or other wire or communication facility. (m) The Fiscal Agent shall have no obligation to give, execute, deliver, file, record, authorize or obtain any financing statements, notices, instruments, documents, agreements, consents or other papers as shall be necessary to (i) create, preserve, perfect or validate the security interest granted to the Fiscal Agent pursuant to the Funding Loan Documents or (ii) enable the Fiscal Agent to exercise and enforce its rights under the Funding Loan Documents with respect to such pledge and security interest. In addition, the Fiscal Agent shall have no responsibility or liability (i) in connection with the acts or omissions of the Governmental Lender, the Borrower or the Funding Lender in respect of the foregoing or (ii) for or with respect to the legality, validity and enforceability of any security interest created in the Security or the perfection and priority of such security interest. Section 11.5 Not Responsible for Recitals. The recitals contained herein and in the Governmental Lender Note shall be taken as the statements of the Governmental Lender, and the Fiscal Agent assumes no responsibility for their correctness. The Fiscal Agent makes no representations as to the value or condition of the Pledged Revenues, the Security or any part thereof, or as to the title of the Governmental Lender thereto or as to the security afford ed thereby or hereby, or as to the validity or sufficiency of this Funding Loan Agreement or of the Funding Loan. Page 486 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 40 4925-0799-6815/024036-0105 The Fiscal Agent shall have no responsibility or liability with respect to any information, statement or recital in any offering memorandum or other disclosure material prepared or distributed with respect to the funding of the Funding Loan. The Fiscal Agent shall not be required to monitor the financial condition of the Borrower or the physical condition of the Project. The Fiscal Agent shall be under no obligation to analyze, review or make any credit decisions with respect to any financial statements, reports, notices, certificates or documents received hereunder but shall hold such financial statements reports, notices, certificates and documents solely for the benefit of, and review by, the Funding Lender and such other parties to whom the Fiscal Agent may provide such information pursuant to this Funding Loan Agreement. The Fiscal Agent makes no representations as to and shall have no respo nsibility for the sufficiency of the insurance required under any of the Borrower Loan Documents. The Fiscal Agent has the benefit of the indemnity set forth in Section 5.15 of the Borrower Loan Agreement. Section 11.6 May Hold Funding Loan. The Fiscal Agent in its individual or any other capacity may become the owner or pledgee of the Funding Loan and may otherwise deal with the Governmental Lender, the Funding Lender and the Borrower with the same rights it would have if it were not Fiscal Agent. Section 11.7 Moneys Held Hereunder. Moneys held by the Fiscal Agent hereunder need not be segregated from other funds except to the extent required by law. The Fiscal Agent shall be under no liability for interest on any moneys received by it hereunder except as otherwise provided herein. The Governmental Lender and the Borrower each acknowledge that to the extent regulations of the Office of the Comptroller of the Currency or other applicable regulatory entity grant the Governmental Lender or the Borrower the right to receive brokerage confirmations of security transactions as they occur, the Governmental Lender and the Borrower specifically waive receipt of such confirmations to the extent permitted by law. The Fiscal Agent will furnish to the Governmental Lender and the Borrower periodic cash transaction statements that shall include detail for all investment transactions made by the Fiscal Agent hereunder. Section 11.8 Compensation and Reimbursement. Under the Borrower Loan Agreement, the Borrower has agreed to, except as otherwise expressly provided herein, pay the Fiscal Agent its fees and reimburse the Fiscal Agent as provided in this Funding Loan Agreement or the Borrower Loan Agreement, upon its request for all reasonable expenses, disbursements and advances incurred or made by the Fiscal Agent in accordance with any provision of this Funding Loan Agreement (including the reasonable fees, costs, expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to the Fiscal Agent’s negligence or willful misconduct, both as finally adjudicated on a non-appealable basis by a court of competent jurisdiction. When the Fiscal Agent incurs expenses or renders service in connection with any bankruptcy or insolvency proceeding, such expenses (including the fees, costs and expenses of its counsel) and the compensation for such services are intended to constitute expenses of administration under any bankruptcy law or law relating to creditors rights generally. Page 487 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 41 4925-0799-6815/024036-0105 (a) The Governmental Lender has no obligation to pay the Fiscal Agent for services rendered. (b) As security for the performance of the obligations of the Borrower under this Section and for the payment of such compensation, expenses, reimbursements and indemnity, the Fiscal Agent shall have the right to use and apply any moneys held by it as Pledged Revenues. (c) The Fiscal Agent’s rights to compensation and reimbursement shall survive its resignation or removal, the payment of the Funding Loan or the Borrower Loan or the release of this Funding Loan Agreement. Section 11.9 Fiscal Agent Required; Eligibility. Any successor Fiscal Agent shall at all times be a trust company, a state banking corporation or a national banking association with the authority to accept trusts in the State approved in writing by the Governmental Lender and either (a) have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition, (b) be a wholly owned subsidiary of a bank holding company, or a wholly owned subsidiary of a company that is a wholly owned subsidiary of a bank holding company, having a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition, have at least $500,000,000 of trust assets under management and have a combined capital and surplus of at least $2,000,000 as set forth in its most recent published annual report of condition, or (c) be otherwise acceptable to the Funding Lender in its sole and absolute discretion. Section 11.10 Resignation and Removal; Appointment of Successor. (a) No resignation or removal of the Fiscal Agent hereunder and no appointment of a successor Fiscal Agent pursuant to this Article shall become effective until the written acceptance by the successor Fiscal Agent of such appointment. (b) The Fiscal Agent may resign and be discharged from its duties and obligations hereunder at any time by giving 30 calendar days’ Written Notice thereof to the Governmental Lender, the Borrower, the Servicer, if any, and the Funding Lender. (c) The Fiscal Agent may be removed at any time with 30 days’ notice by (i) the Governmental Lender, (ii) the Borrower (unless the Borrower is in default under any of the Borrower Loan Documents), subject to applicable notice and cure periods, with the Written Consent of the Funding Lender and the Governmental Lender, or (iii) the Funding Lender with the Written Consent of the Governmental Lender and Written Notice delivered to the Fiscal Agent and the Borrower. (d) If the Fiscal Agent shall resign, be removed or become incapa ble of acting, or if a vacancy shall occur in the Office of the Fiscal Agent for any cause, the Governmental Lender shall promptly appoint a successor Fiscal Agent, with the consent of the Funding Lender, which consent shall not be unreasonably withheld. In case all or substantially all of the Pledged Revenues and Security shall be in the possession of a receiver or trustee lawfully appointed, such receiver or trustee may similarly appoint a successor to fill such vacancy until a new Fiscal Agent shall be so appointed by the Governmental Lender. If, within 45 calendar days after such resignation, removal or incapability or the occurrence of such vacancy, the Governmental Lender has failed to so appoint a successor Fiscal Agent, then a successor Fiscal Agent shall be appointed by the Funding Lender (from any of the institutions approved by the Governmental Lender to serve as a fiscal agent or trustee) with Written Notice thereof delivered to the Governmental Lender, the Borrower, the Servicer, if any, and Page 488 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 42 4925-0799-6815/024036-0105 the retiring Fiscal Agent, and the successor Fiscal Agent so appointed shall, forthwith upon its acceptance of such appointment, become the successor Fiscal Agent and supersede the successor Fiscal Agent appointed by such receiver or Fiscal Agent. If no successor Fiscal Agent shall have been appointed by the Governmental Lender or the Funding Lender and accepted appointment within 60 calendar days after such resignation, removal or incapability or the occurrence of such vacancy, the Fiscal Agent shall be entitled (at the sole expense of the Borrower, including fees, costs and expenses of counsel) to petition any court of competent jurisdiction for the appointment of a successor Fiscal Agent and for other appropriate relief. (e) The retiring Fiscal Agent shall cause Written Notice of each resignation and each removal of the Fiscal Agent and each appointment of a successor Fiscal Agent to be provided to the Funding Lender. Each notice shall include the name of the successor Fiscal Agent and the address of the office of the successor Fiscal Agent. Section 11.11 Acceptance of Appointment by Successor. (a) Every successor Fiscal Agent appointed hereunder shall execute, acknowledge and deliver to the Governmental Lender and to the retiring Fiscal Agent an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Fiscal Agent shall become effective and such successor Fiscal Agent, without any further act, deed or conveyance, shall become vested with all the estates, properties, rights, powers and dutie s of the retiring Fiscal Agent; notwithstanding the foregoing, on request of the Governmental Lender or the successor Fiscal Agent, such retiring Fiscal Agent shall, upon payment of its charges, execute and deliver an instrument conveying and transferring to such successor Fiscal Agent all the estates, properties, rights, powers and trusts of the retiring Fiscal Agent, and shall duly assign, transfer and deliver to such successor Fiscal Agent all property and money held by such retiring Fiscal Agent hereund er. Upon request of any such successor Fiscal Agent, the Governmental Lender shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor Fiscal Agent all such estates, properties, rights and powers. (b) No successor Fiscal Agent shall accept its appointment unless at the time of such acceptance such successor Fiscal Agent shall be qualified and eligible under this Article, to the extent operative. Section 11.12 Merger, Conversion, Consolidation or Succession to Business. Any corporation into which the Fiscal Agent may be merged or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Fiscal Agent shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Fiscal Agent, shall be the successor of the Fiscal Agent hereunder, provided such corporation shall be otherwise qualified and eligible under this Article, to the extent operative, without the execution or filing of any paper or any further act on the part of any of the parties hereto. Notwithstanding the foregoing, any such successor Fiscal Agent shall cause Written Notice of such succession to be delivered to the Funding Lender within 30 days of such succession. Section 11.13 Appointment of Co-Fiscal Agent. It is recognized that in case of litigation under this Funding Loan Agreement, the Borrower Loan Agreement, any other Borrower Loan Document or the Regulatory Agreement, and in particular in case of the enforcement of any of them on default, or in case the Fiscal Agent deems that by reason of any present or future law of any jurisdiction it may not exercise any of the powers, rights or remedies herein granted to the Fiscal Agent Page 489 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 43 4925-0799-6815/024036-0105 or hold title to the properties, a s herein provided, or take any other action which may be desirable or necessary in connection therewith, it may be necessary that the Fiscal Agent appoint an additional individual or institution as a separate or co-fiscal agent. The following provisions of this Section are adopted to these ends. The Fiscal Agent is hereby authorized to appoint an additional individual or institution as a separate or co-fiscal agent hereunder, upon Written Notice to the Governmental Lender, the Funding Lender and the Borrower, and with the consent of the Governmental Lender and the Funding Lender, but without the necessity of further authorization or consent, in which event each and every remedy, power, right, claim, demand, cause of action, immunity, estate, title, interest and lien expressed or intended by this Funding Loan Agreement, any Borrower Loan Document, the Regulatory Agreement or the Borrower Loan Agreement to be exercised by or vested in or conveyed to the Fiscal Agent with respect thereto shall be exercisable by and vest in such separate or co-fiscal agent but only to the extent necessary to exercise such powers, rights and remedies, and every covenant and obligation necessary to the exercise thereof by such separate or co -fiscal agent shall run to and be enforceable by either of them. Should any instrument in writing from the Governmental Lender be required by the separate fiscal agent or co-fiscal agent appointed by the Fiscal Agent for more fully and certainly vesting in and confirming to him or it such properties, rights, powers, duties and obligations, any and all such instruments in writing shall, on request of the Fiscal Agent, be executed, acknowledged and delivered by the Governmental Lender. In case any separate fiscal agent or co -fiscal agent, or a successor to either, shall die, become incapable of acting, resign or be removed, all the estates, properties, rights, powers, duties and obligations of such separate fiscal agent or co-fiscal agent, so far as permitted by law, shall vest in and be exercised by the Fiscal Agent until the appointment of a successor to such separate fiscal agent or co fiscal agent. Section 11.14 Loan Servicing. The Governmental Lender and the Fiscal Agent acknowledge that the Funding Lender shall have the right to appoint a Servicer to service and administer the Funding Loan and the Borrower Loan as set forth in a Servicing Agreement. The Governmental Lender and the Fiscal Agent shall not be responsible for monitoring the performance of any Servicer or for any acts or omissions of such Servicer. The Funding Lender may, in its sole discretion, terminate or replace the Servicer. Section 11.15 No Recourse Against Officers or Employees of Fiscal Agent . No recourse with respect to any claim related to any obligation, duty or agreement contained in this Funding Loan Agreement or any other Funding Loan Document shall be had against any officer or employee, as such, of the Fiscal Agent, it being expressly understood that the obligations, duties and agreements of the Fiscal Agent contained in this Funding Loan Agre ement and the other Funding Loan Documents are solely corporate in nature. ARTICLE XII MISCELLANEOUS Section 12.1 Notices. All notices, demands, requests and other communications required or permitted to be given by any provision of this Funding Loan Agreement shall be in writi ng and sent by first class, regular, registered or certified mail, commercial delivery service, overnight courier, Page 490 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 44 4925-0799-6815/024036-0105 telegraph, telex, telecopier or facsimile transmission, air or other courier, hand delivery, to the party to be notified addressed as follows: If to the Fiscal Agent: Wilmington Trust, National Association 650 Town Center Drive, Suite 800 Costa Mesa, California 92626 Attention: Corporate Trust Services If to the Governmental Lender: Chula Vista Housing Authority 276 Fourth Avenue Chula Vista, California 91910 Attention: Executive Director Telephone: (619) 691-5263 If to the Borrower: MU2 Affordable LP, c/o Baldwin & Sons 20 Corporate Plaza Dr. Newport Beach, CA 92660 Re: Sol Vista Apartments Attention: Nick Lee Telephone: (619) 515-9115 with a copy to: Downs Pham & Kuei 235 Montgomery Street Suite 1169 San Francisco, CA 94104 Attention: Gary Downs Re: Sol Vista Apartments Telephone: (415) 202-6374 Email: gdowns@downspham.com and a copy to: Downs Pham & Kuei 235 Montgomery Street Suite 1169 San Francisco, CA 94104 Attention: Irvin Reyes Re: Sol Vista Apartments Telephone: (415) 964-5111 Email: ireyes@downspham.com If to the Equity Investor: WNC Holding, LLC c/o WNC & Associates, Inc. 17782 Sky Park Circle Irvine, California 92614 Attention: Melanie Wenk Page 491 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 45 4925-0799-6815/024036-0105 with a copy to: Holland & Knight LLP 10 St. James Avenue, 11th Floor Boston, Massachusetts 02116 Attention: Jonathan Sirois Email: Jonathan.sirois@hklaw.com If to the Funding Lender: Citibank, N.A. 388 Greenwich Street, Trading 4th Floor New York, New York 10013 Attention: Transaction and Asset Management Group Re: Sol Vista Apartments Deal ID # 50017216 Facsimile: (212) 723-8209 and to: Citibank, N.A. Transaction and Asset Management Group/Post Closing Citi Community Capital 3800 Citibank Center Tampa, Florida 33610 Re: Sol Vista Apartments Deal ID # 50017216 prior to the Conversion Date, with a copy to: Citibank, N.A. 388 Greenwich Street, Trading 4th Floor New York, New York 10013 Attention: Account Specialist Re: Sol Vista Apartments Deal ID# 50017216 Facsimile: (212) 723-8209 following the Conversion Date with a copy to: Citibank, N.A. c/o Berkadia Commercial Servicing Department 323 Norristown Road, Suite 300 Ambler, Pennsylvania 19002 Attention: Client Relations Manager Re: Sol Vista Apartments Deal ID# 50017216 Facsimile: (215) 328-0305 Page 492 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 46 4925-0799-6815/024036-0105 and a copy of any notices of default sent to: Citibank, N.A. 388 Greenwich Street, 17th Floor New York, New York 10013 Attention: General Counsel’s Office Re: Sol Vista Apartments Deal ID# 50017216 Facsimile: (646) 291-5754 Any such notice, demand, request or communication shall be deemed to have been given and received for all purposes under this Funding Loan Agreement: (i) three Business Days after the same is deposited in any official depository or receptacle of the United States Postal Service first class, or, if applicable, certified mail, return receipt requested, postage prepaid; (ii) on the date of transmission when delivered by telecopier or facsimile transmission, telex, telegraph or other telecommunication device, provided any telecopy or other electronic transmission received by any party after 4:00 p.m., local time, as evidenced by the time shown on such transmission, shall be deemed to have been received the following Business Day; (iii) on the next Business Day after the same is deposited with a nationally recognized overnight delivery service that guarantees overnight delivery; and (iv) on the date of actual delivery to such party by any other means; provided, however, if the day such notice, demand, request or communication shall be deemed to have been given and received as aforesaid is not a Business Day, such notice, demand, request or communication shall be deemed to have been given and received on the next Business Day. Any facsimile signature by a Person on a document, notice, demand, request or communication required or permitted by this Funding Loan Agreement shall constitute a legal, valid and binding execution thereof by such Person. Any party to this Funding Loan Agreement may change such party’s address for the purpose of notice, demands, requests and communications required or permitted under this Funding Loan Agreement by providing written notice of such change of address to all of the parties by written notice as provided herein. Section 12.2 Term of Funding Loan Agreement. This Funding Loan Agreement shall be in full force and effect until all payment obligations of the Governmental Lender hereunder have been paid in full and the Funding Loan has been retired or the payment thereof has been provided for; except that on and after payment in full of the Governmental Lender Note, this Funding Loan Agreement shall be terminated, without further action by the parties hereto. Section 12.3 Successors and Assigns. All covenants and agreements in this Funding Loan Agreement by the Governmental Lender shall bind its successors and assigns, whether so expressed or not. Section 12.4 Legal Holidays. In any case in which the date of payment of any amount due hereunder or the date on which any other ac t is to be performed pursuant to this Funding Loan Agreement shall be a day that is not a Business Day, then payment of such amount or such act need not be made on such date but may be made on the next succeeding Business Day, and such later payment or such act shall have the same force and effect as if made on the date of payment or the date fixed for prepayment or the date fixed for such act, and no additional interest shall accrue for the period from and after such date and prior to the date of payment. Page 493 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 47 4925-0799-6815/024036-0105 Section 12.5 Governing Law. This Funding Loan Agreement shall be governed by and shall be enforceable in accordance with the laws of the State applicable to contracts made and performed in the State. Section 12.6 Entire Agreement; Severability. This Funding Loan Agreement and the other Funding Loan Documents constitute the entire agreement and supersede all prior agreements and understandings, both written and oral, among the parties hereto with respect to the subject matter hereof. If any provision of this Funding Loan Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions shall not in any way be affected or impaired. In case any covenant, stipulation, obligation or agreement contained in the Governmental Lender Note or in this Funding Loan Agreement shall for any reason be held to be usurious or in violation of law, then such covenant, stipulation, obligation or agreement shall be deemed to be the covenant, stipulation, obligation or agreement of the Governmental Lender or the Funding Lender only to the full extent permitted by law. Section 12.7 Execution in Several Counterparts. This Funding Loan Agreement may be contemporaneously executed in several counterparts, all of which shall constitute one and the same instrument and each of which shall be, and shall be deemed to be, an original. Section 12.8 Nonrecourse Obligation of the Borrower. Except as otherwise provided in the Borrower Loan Agreement, any obligations of the Borrower under this Funding Loan Agreement are without recourse to the Borrower or to the Borrower’s partners or members, as the case may be, and the provisions of Section 11.1 of the Borrower Loan Agreement are by this reference incorporated herein. Section 12.9 Waiver of Trial by Jury. IF AND TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, EACH OF THE GOVERNMENTAL LENDER AND THE FUNDING LENDER (A) COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS FUNDING LOAN AGREEMENT OR THE RELATIONSHIP BETWEEN THE PARTIES THAT IS TRIABLE OF RIGHT BY A JURY AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL. IF FOR ANY REASON THIS WAIVER IS DETERMINED TO BE UNENFORCEABLE, ALL DISPUTES WILL BE RESOLVED BY JUDICIAL REFERENCE PURSUANT TO THE PROCEDURES SET FORTH IN THE SECURITY INSTRUMENT. Section 12.10 Electronic Transactions. The transactions described in this Funding Loan Agreement may be conducted and the related documents may be stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original executed documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Notwithstanding the foregoing, original executed versions of each of the Funding Loan Documents shall be deliv ered to the Funding Lender in connection with the closing of the transactions described herein. Page 494 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 48 4925-0799-6815/024036-0105 Section 12.11 Reference Date. This Funding Loan Agreement is dated for reference purposes only as of the first day of _______________, 2026. [Remainder of Page Intentionally Left Blank] Page 495 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda [Signature Page to Funding Loan Agreement – Sol Vista Apartments] S-1 4925-0799-6815/024036-0105 IN WITNESS WHEREOF, the Funding Lender, the Fiscal Agent and the Governmental Lender have caused this Funding Loan Agreement to be duly executed as of the date first written above. FUNDING LENDER: CITIBANK, N.A. By: Name: Title: Deal ID # 50017216 Page 496 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda [Signature Page to Funding Loan Agreement – Sol Vista Apartments] S-2 4925-0799-6815/024036-0105 GOVERNMENTAL LENDER: CHULA VISTA HOUSING AUTHORITY By: Executive Director Page 497 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda [Signature Page to Funding Loan Agreement – Sol Vista Apartments] S-3 4925-0799-6815/024036-0105 FISCAL AGENT: WILMINGTON TRUST, NATIONAL ASSOCIATION, as Fiscal Agent By: Authorized Signatory Page 498 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda A-1 4925-0799-6815/024036-0105 EXHIBIT A FORM OF GOVERNMENTAL LENDER NOTE THIS NOTE MAY BE OWNED ONLY BY A PERMITTED TRANSFEREE IN ACCORDANCE WITH THE TERMS OF THE FUNDING LOAN AGREEMENT, AND THE HOLDER HEREOF, BY THE ACCEPTANCE OF THIS FUNDING LOAN AGREEMENT (A) REPRESENTS THAT IT IS A PERMITTED TRANSFEREE AND (B) ACKNOWLEDGES THAT IT CAN ONLY TRANSFER THIS GOVERNMENTAL LENDER NOTE TO ANOTHER PERMITTED TRANSFEREE IN ACCORDANCE WITH THE TERMS OF THE FUNDING LOAN AGREEMENT. CHULA VISTA HOUSING AUTHORITY MULTIFAMILY HOUSING REVENUE NOTE (SOL VISTA APARTMENTS) 2026 SERIES A $_____________ ______________, 2026 FOR VALUE RECEIVED, the undersigned CHULA VISTA HOUSING AUTHORITY (“Obligor”) promises to pay to the order of CITIBANK, N.A. (“Holder”) the maximum principal sum of __________ DOLLARS ($_____________), on __________, 20__, or earlier as provided herein, together with interest thereon at the rates, at the times and in the amounts provided below. Obligor shall pay to the Holder on or before each date on which payment i s due under that certain Funding Loan Agreement, dated as of ______________ 1, 2026 (the “Funding Loan Agreement”), among Obligor, Holder and Wilmington Trust, National Association, as fiscal agent (“Fiscal Agent”), an amount in immediately available funds sufficient to pay the principal amount of and Prepayment Premium, if any, on this Governmental Lender Note then due and payable, whether by maturity, acceleration, prepayment or otherwise. In the event that amounts held derived from proceeds of this Governmental Lender Note, condemnation awards or insurance proceeds or investment earnings thereon are applied to the payment of principal due on this Governmental Lender Note in accordance with the Funding Loan Agreement, the principal amount due hereunder sh all be reduced to the extent of the principal amount of this Governmental Lender Note so paid. Capitalized terms not otherwise defined herein shall have the meaning assigned in the Funding Loan Agreement. Obligor shall pay to the Holder on or before each date on which interest on the Funding Loan is payable interest on the unpaid balance hereof in an amount in immediately available funds sufficient to pay the interest on this Governmental Lender Note then due and payable in the amounts and at the rate or rates set forth in the Funding Loan Agreement. This Governmental Lender Note is a pass-through obligation relating to a construction and permanent loan (the “Borrower Loan”) made by Obligor from proceeds of the Funding Loan to MU2 AFFORDABLE LP, a California limited partnership, as borrower (the “Borrower”), under that certain Borrower Loan Agreement, dated as of ______________ 1, 2026, (as the same may be modified, amended or supplemented from time to time, the “Borrower Loan Agreement”), between the Obligo r and the Borrower, evidenced by the Borrower Note (as defined in the Borrower Loan Agreement). Reference is made to the Borrower Loan Agreement and to the Borrower Note for complete payment and prepayment terms of the Borrower Note, payments on which are passed-through under this Governmental Lender Note. Page 499 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda A-2 4925-0799-6815/024036-0105 This Governmental Lender Note is a limited obligation of the Obligor, payable solely from the Pledged Revenues and other funds and moneys and Security pledged and assigned under the Funding Loan Agreement. None of the Governmental Lender, the State, or any political subdivision thereof (except the Governmental Lender, to the limited extent set forth herein) or any public agency shall in any event be liable for the payment of the principal of, premium (if any) or interest on this Governmental Lender Note or the Funding Loan or for the performance of any pledge, obligation or agreement of any kind whatsoever with respect thereto except as set forth herein and in the Funding Loan Agreement, and none of the Funding Loan or this Governmental Lender Note or any of the Governmental Lender’s agreements or obligations with respect to the Funding Loan or this Governmental Lender Note shall be construed to constitute an indebtedness of or a pledge of the faith and credit of or a loan of the credit of or a moral obligation of any of the foregoing within the meaning of any constitutional or statutory provision whatsoever. The Governmental Lender has no taxing power. All capitalized terms used but not defined herein shall have the meanings ascribed to them in the Funding Loan Agreement or in the Borrower Loan Agreement. This Governmental Lender Note is subject to the express condition that at no time shall interest be payable on this Governmental Lender Note or the Funding Loan at a rate in excess of the Maximum Rate provided in the Funding Loan Agreement; and Obligor shall not be obligated or required to pay, nor shall the Holder be permitted to charge or collect, interest at a rate in excess of such Maximum Rate. If by the terms of this Governmental Lender Note or of the Funding Loan Agreement, Obligor is required to pay interest at a rate in excess of such Maximum Rate, the rate of interest hereunder or thereunder shall be deemed to be reduced immediately and automatically to such Maximum Rate, and any such excess payment previously made shall be immediately and automatically applied to the unpaid balance of the principal sum hereof and not to the payment of interest. Amounts payable hereunder representing late payments, penalty payments or the like shall be payable to the extent allowed by law. This Governmental Lender Note is subject to all of the terms, conditions, and provisions of the Funding Loan Agreement, including those respecting prepayment and the acceleration of maturity and those respecting limitations of liability in Article V of the Funding Loan Agreement. If there is an Event of Default under the Funding Loan Documents, then in any such event and subject to the requirements set forth in the Funding Loan Agreement, the Holder may declare the entire unpaid principal balance of this Governmental Lender Note and accrued interest, if any, due and payable at once. All of the covenants, conditions and agreements contained in the Funding Loan Documents are hereby made part of this Governmental Lender Note. No delay or omission on the part of the Holder in exercising any remedy, right or option under this Governmental Lender Note or the Funding Loan Documents shall operate as a waiver of such remedy, right or option. In any event a waiver on any one occasion shall not be construed as a waiver or bar to any such remedy, right or option on a future occasion. The rights, remedies and options of the Holder under this Governmental Lender Note and the Funding Loan Documents are and shall be cumulative and are in addition to all of the rights, remedies and options of the Holder at law or in equity or under any other agreement. Page 500 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda A-3 4925-0799-6815/024036-0105 Obligor shall pay all costs of collection on demand by the Holder, including without limitation , reasonable attorneys’ fees and disbursements, which costs may be added to the indebtedness hereunder, together with interest thereon, to the extent allowed by law, as set forth in the Funding Loan Agreement. This Governmental Lender Note may not be changed orally. Presentment for payment, notice of dishonor, protest and notice of protest are hereby waived. The acceptance by the Holder of any amount after the same is due shall not constitute a waiver of the right to require prompt payment, when due, of all other amounts due hereunder. The acceptance by the Holder of any sum in an amount less than the amount then due shall be deemed an acceptance on account only and upon condition that such acceptance shall not constitute a waiver of the obligation of Obligor to pay the entire sum then due, and Obligor’s failure to pay such amount then due shall be and continue to be a default notwithstanding such acceptance of such amount on account, as aforesaid. Consent by the Holder to any action of Obligor which is subject to consent or approval of the Holder hereunder shall not be deemed a waiver of the right to require such consent or approval to future or successive actions. This Governmental Lender Note (and the portion of the Funding Loan that it represents), and any interests herein or therein, are transferable by the registered owner hereof, but only in the manner, subject to the limitations and upon payment of the charges provided in the Funding Loan Agreement. Upon such transfer a new fully registered Governmental Lender Note will be issued to the transferee in exchange herefor. The Obligor, the Funding Lender and the Fiscal Agent may treat the registered owner hereof as the absolute owner hereof for all purposes, and the Obligor and the Funding Lender shall not be affected by any notice to the contrary. The Obligor hereby certifies that all of the conditions, things and acts required to exist, to have happened and to have been performed precedent to and in the issuance of this Governmental Lender Note do exist, have happened and have been performed in due time, form and manner as required by the Constitution and laws of the State (including the Act) and that the amount of this Governmental Lender Note, together with all other indebtedness of the Obligor, does not exceed any limit prescribed by the Constitution or laws of the State. Page 501 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda A-4 4925-0799-6815/024036-0105 IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Governmental Lender Note by its authorized representative as of the date first set forth above. The undersigned intends that this instrument shall be deemed to be signed and delivered as a sealed instrument. OBLIGOR: CHULA VISTA HOUSING AUTHORITY By: Executive Director [SEAL] ATTEST: By: Secretary [Signature Page to Governmental Lender Note – Sol Vista Apartments] Page 502 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda A-5 4925-0799-6815/024036-0105 CERTIFICATE OF AUTHENTICATION This Governmental Lender Note is the Governmental Lender Note described in the within mentioned Funding Loan Agreement. Date of Authentication: __________________ WILMINGTON TRUST, NATIONAL ASSOCATION, as Fiscal Agent By Authorized Signatory [Signature Page to Governmental Lender Note – Sol Vista Apartments] Page 503 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda B-1 4925-0799-6815/024036-0105 EXHIBIT B FORM OF REQUIRED TRANSFEREE REPRESENTATIONS [_________________, 20__] The undersigned, as holder (the “Holder”) of a loan (the “Funding Loan”) in the maximum principal amount of $________________ from CITIBANK, N.A. (“Funding Lender”) to CHULA VISTA HOUSING AUTHORITY (“Governmental Lender”) pursuant to a Funding Loan Agreement dated as of ______________ 1, 2026 (the “Funding Loan Agreement”) among the Funding Lender, the Governmental Lender and WILMINGTON TRUST, NATIONAL ASSOCIATION, as fiscal agent (the “Funding Loan”), evidenced by the Chula Vista Housing Authority Multifamily Housing Revenue Note (Sol Vista Apartments) 2026 Series A (collectively, the “Governmental Lender Note”), or an interest therein, hereby represents that: 1. The Holder has sufficient knowledge and experience in financial and b usiness matters with respect to the evaluation of residential real estate developments such as the Project to be able to evaluate the risk and merits of the investment represented by the Funding Loan. We are able to bear the economic risks of such investment. 2. The Holder acknowledges that it has either been supplied with or been given access to information, including financial statements and other financial information, to which a reasonable investor would attach significance in making investment decisio ns, and the Holder has had the opportunity to ask questions and receive answers from knowledgeable individuals concerning the Governmental Lender, the Project, the use of proceeds of the Funding Loan and the Funding Loan and the security therefor so that, as a reasonable investor, the Holder has been able to make its decision to [extend/purchase] the Funding Loan [or an interest therein]. In entering into this transaction, the Holder acknowledges that it has not relied upon any representations or opinions of the Governmental Lender relating to the legal consequences to the Funding Lender or other aspects of its making the Funding Loan and acquiring the Governmental Lender Note, nor has it looked to or expected, the Governmental Lender to undertake or require any credit investigation or due diligence reviews relating to the Borrower, its financial condition or business operations, the Project (including the financing or management thereof), or any other matter pertaining to the merits or risks of the transact ions contemplated by the Funding Loan Agreement and the Borrower Loan Agreement, or the adequacy of the funds pledged to the Funding Lender to secure repayment of the Governmental Lender Note. 3. The Holder is an Approved Transferee. 4. The Holder acknowledges that it is purchasing [an interest in] the Funding Loan for investment for its own account and not with a present view toward resale or the distribution thereof, in that it does not now intend to resell or otherwise dispose of all or any part of its interests in the Funding Loan; provided, however, that the Holder may sell or transfer the Governmental Lender Note and the Funding Loan as provided in Section 2.4 of the Funding Loan Agreement. 5. In the event any placement memorandum to be provided to any subsequent buyer or beneficial owner of such portion of the Funding Loan will disclose information with respect to the Governmental Lender other than its name, location and type of political subdivision and general information with respect to the Funding Loan and Borrower Loan and related documents, the Holder Page 504 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda B-2 4925-0799-6815/024036-0105 will provide the Governmental Lender with a draft of such placement memorandum and the Governmental Lender shall have the right to approve any description of the Governmental Lender therein (which approval shall not be unreasonably withheld). 6. The Holder understands that the Funding Loan is a limited obligation of the Governmental Lender; payable solely from funds and moneys pledged and assigned under the Funding Loan Agreement, and that the liabilities and obligations of the Governmental Lender with respect to the Funding Loan are expressly limited as set forth in the Funding Loan Agreement and related documents. 7. Capitalized terms used herein and not otherwise defined have the meanings given such terms in the Funding Loan Agreement. [_______________], as Holder By Name Its Page 505 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda C-1 4925-0799-6815/024036-0105 EXHIBIT C FORM OF WRITTEN REQUISITION OF THE BORROWER – PROJECT FUND Draw #______ To: Wilmington Trust, National Association, as Fiscal Agent (the “Fiscal Agent”) under that certain Funding Loan Agreement, dated as of ______________ 1, 2026, among Citibank, N.A., as Funding Lender, the Chula Vista Housing Authority, as Governmental Lender, and the Fiscal Agent (the “Funding Loan Agreement”), pursuant to which the Chula Vista Housing Authority Multifamily Housing Revenue Note (Sol Vista Apartments) 2026 Series A (the “Governmental Lender Note”) was issued. 1. You are requested to disburse funds from the Project Fund pursuant to Section 7.7 of the Funding Loan Agreement in the amount(s) and to the person(s) as follows: [Insert grid (see below) summarizing all funds, including amount, source and payee, which are being requisitioned from the Fiscal Agent pursuant to this requisition.] Amount Funding Source Payable To 2. The undersigned certifies that: (i) the obligation stated on the requisition has been incurred in or about the rehabilitation or equipping of the Project, each item is a proper charge against the Project Fund, and the obligation has not been the basis for a prior requisition that has been paid; (ii) such requisition contains no items representing any Costs of Issuance or any other amount constituting an issuance cost under Section 147(g) of the Code, unless such item is being paid solely from the Equity Account of the Project Fund; (iii) not less than 97% of the sum of: (A) the amounts requisitioned by this Requisition to be funded with the proceeds of the Governmental Lender Note plus (B) all amounts allocated to the Governmental Lender Note previously disbursed from the Note Proceeds Account of the Project Fund, have been or will be applied by the Borrower to pay Qualified Project Costs; (iv) to the undersigned’s current, actual knowledge, as of the date hereof no event or condition has happened or is happening or exists that constitutes, or that with notice or lapse of time or both, would constitute, an Event of Default under the Funding Loan Agreement; and (v) attached as Schedule I to this Requisition is an exhibit that allocates the amount requested hereby from each account of the Project Fund among the sources for payment. Page 506 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda C-2 4925-0799-6815/024036-0105 3. You hereby authorize Funding Lender to use the wire instructions contained in Exhibit E of the Funding Loan Agreement to wire the funds to, and Funding Lender may continue to rely on these instructions until it shall have received any written notice of modification or revocation from you. Dated:______________________ MU2 AFFORDABLE LP, a California limited partnership By: Name: Title: Page 507 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda C-3 4925-0799-6815/024036-0105 Approved by: CITIBANK, N.A., as Funding Lender By: Authorized Signer Page 508 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda D-1 4925-0799-6815/024036-0105 EXHIBIT D FORM OF WRITTEN REQUISITION OF THE BORROWER – CLOSING COSTS FUND To: Wilmington Trust, National Association, as Fiscal Agent (the “Fiscal Agent”) under that certain Funding Loan Agreement, dated as of ______________ 1, 2026, among Citibank, N.A., as Funding Lender, Chula Vista Housing Authority, as Governmental Lender, and the Fiscal Agent (the “Funding Loan Agreement”). 1. You are requested to disburse funds from the Closing Costs Fund pursuant to Section 7.6 of the Funding Loan Agreement in the amount(s), to the person(s) and for the purpose(s) set forth on Schedule I attached hereto and incorporated herein by reference. An invoice or other appropriate evidence of the obligations described on Schedule I is attached hereto. All payments will be made by check or wire transfer in accordance with the payment instructions set forth on Schedule I (or on the attached invoice) and the Fiscal Agent shall have no obligation to authenticate such payment instructions or the authority under which they were given. 2. The undersigned certifies that as of the date hereof no event or condition has happened or is happening or exists that constitutes, or that with notice or lapse of time or both, would constitute, an Event of Default under the Funding Loan Agreement. Dated: ____________________ BORROWER: MU2 AFFORDABLE LP, a California limited partnership By: Name: Title: Page 509 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda D-2 4925-0799-6815/024036-0105 The foregoing Requisition is hereby consented to: FUNDING LENDER: CITIBANK, N.A. By: Authorized Representative GOVERNMENTAL LENDER: CHULA VISTA HOUSING AUTHORITY By: Executive Director Page 510 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda D-3 4925-0799-6815/024036-0105 Schedule I Payment Instructions Payee Purpose Amount of Payment Page 511 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda E-1 4925-0799-6815/024036-0105 EXHIBIT E FISCAL AGENT WIRING INSTRUCTIONS Bank Name: Wilmington Trust, National Association Bank City and State: ABA Number: Account Name: Account Number: Reference: Page 512 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda F-1 4925-0799-6815/024036-0105 EXHIBIT F FORM OF TRANSFEROR LETTER Chula Vista Housing Authority, Issuer Wilmington Trust, National Association, as Fiscal Agent RE: Chula Vista Housing Authority Multifamily Housing Revenue Note (Sol Vista Apartments) 2026 Series A (the “Notes”) Ladies and Gentlemen: The undersigned representative of Citibank, N.A. (the “Transferor”), as Seller under the [Purchase Agreement] (the “Purchase Agreement”) pursuant to which the Transferor has sold the Notes to [CERTIFICATE ISSUER] (the “Certificate Issuer”) for purposes of the deposit by the Certificate Issuer of the Notes with [CERTIFICATE TRUSTEE] (the “Trustee”), as trustee under a Trust Agreement between the Certificate Issuer and the Trustee (“Trust Agreement”), and the issuance of municipal certificates (the “Certificates”), does hereby certify, represent and warrant, solely on the basis of the Portfolio Purchase Agreement and the Trust Agreement, for the benefit of the Chula Vista Housing Authority (the “Issuer”) and Wilmington Trust, National Association, as Fiscal Agent (the “Fiscal Agent”) for the Notes under the Funding Loan Agreement among the Issuer, the Transferor and the Fiscal Agent (as amended, the “Funding Loan Agreement”) pursuant to which the Notes were issued, as follows: (1) The Certificate Issuer is acquiring the Notes solely for purposes of depositing them with the Trustee under the Trust Agreement as security for the payment of the Certificates. (2) The Certificates issued pursuant to the Trust Agreement will only be (i) owned by QIBs and sold in denominations of $100,000 or higher, or (ii) rated at the time of issuance in a category higher than “BBB” without regard to modifier (or the equivalent investm ent grade category) by at least one nationally recognized rating agency. (3) The registered holder of the Notes will at all times be obligated to comply with the requirements of the Funding Loan Agreement governing any future transfer of the Notes. (4) The Transferor has provided the Certificate Issuer all information and documentation that has been requested by the Certificate Issuer in order for the Certificate Issuer to conduct its own investigation to the extent it deemed necessary. The Certificate Iss uer has been offered an opportunity to have made available to it any and all such information it might request regarding the Notes and the collateral for the Notes. The Certificate Issuer has represented in the Purchase Agreement that it is not relying on any other party or person, other than the Transferor, to undertake the furnishing or verification of information related to the Notes. Page 513 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda F-2 4925-0799-6815/024036-0105 This letter and the representations and agreements contained herein are made for your benefit. IN WITNESS WHEREOF, I have hereunto set my hand the _______ day of ____________. CITIBANK, N.A. By: Name: Title: Page 514 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Stradling Yocca Carlson & Rauth Draft dated April 14, 2026 4907-9342-2735v5/024036-0105 Recording Requested By and When Recorded Mail To: Stradling Yocca Carlson & Rauth 660 Newport Center Drive, Suite 1600 Newport Beach, California 92660 Attention: Bradley R. Neal, Esq. REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS By and Between CHULA VISTA HOUSING AUTHORITY and MU2 AFFORDABLE LP a California limited partnership _________________________ Dated as of __________________ 1, 2026 _________________________ Relating to: $________________________ CHULA VISTA HOUSING AUTHORITY MULTIFAMILY HOUSING REVENUE NOTE (SOL VISTA APARTMENTS) 2026 SERIES A Page 515 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda i 4907-9342-2735v5/024036-0105 TABLE OF CONTENTS Section 1. Definitions and Interpretation ....................................................................................... 1 Section 2. Representations, Covenants and Warranties of the Owner ........................................... 5 Section 3. Qualified Residential Rental Project ............................................................................. 5 Section 4. Low Income Tenants and Very Low Income Tenants; Reporting Requirements ......... 6 Section 5. Tax-Exempt Status of Note ........................................................................................... 8 Section 6. Requirements of the Housing Law................................................................................ 9 Section 7. Requirements of the Governmental Lender ................................................................ 10 Section 8. Modification of Covenants.......................................................................................... 11 Section 9. Indemnification; Other Payments ............................................................................... 11 Section 10. Consideration .............................................................................................................. 13 Section 11. Reliance ....................................................................................................................... 13 Section 12. Transfer of the Project ................................................................................................ 13 Section 13. Term ............................................................................................................................ 14 Section 14. Covenants to Run With the Land ................................................................................ 15 Section 15. Burden and Benefit ..................................................................................................... 15 Section 16. Uniformity; Common Plan ......................................................................................... 16 Section 17. Default; Enforcement .................................................................................................. 16 Section 18. Recording and Filing ................................................................................................... 17 Section 19. Payment of Fees .......................................................................................................... 17 Section 20. Governing Law; Venue ............................................................................................... 18 Section 21. Amendments; Waivers ................................................................................................ 18 Section 22. Notices ........................................................................................................................ 18 Section 23. Severability ................................................................................................................. 19 Section 24. Multiple Counterparts ................................................................................................. 19 Section 25. Limitation on Liability ................................................................................................ 19 Section 26. Third-Party Beneficiary .............................................................................................. 19 Section 27. Property Management ................................................................................................. 20 Section 28. Requirements of CDLAC ........................................................................................... 20 EXHIBIT A DESCRIPTION OF REAL PROPERTY EXHIBIT B FORM OF INCOME CERTIFICATION EXHIBIT C FORM OF CERTIFICATE OF CONTINUING PROGRAM COMPLIANCE EXHIBIT D CDLAC RESOLUTION Page 516 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 4907-9342-2735v5/024036-0105 REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS THIS REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS (as supplemented and amended from time to time, this “Regulatory Agreement”) is made and entered into as of __________________ 1, 2026, by and between the CHULA VISTA HOUSING AUTHORITY, a public body, corporate and politic, duly organized and existing under the laws of the State of California (together with any successor to its rights, duties and obligations, the “Governmental Lender”), and MU2 AFFORDABLE LP, a California limited partnership, duly organized, validly existing and in good standing under the laws of the State of California (together with any successor to its rights, duties and obligations hereunder and as owner of the Project identified herein, the “Owner”). W I T N E S S E T H: WHEREAS, pursuant to Chapter 1 of Part 2 of Division 24 of the California Health and Safety Code (as amended, the “Housing Law”), and the hereinafter defined Funding Loan Agreement, the Governmental Lender has agreed to execute and deliver its Chula Vista Housing Authority Multifamily Housing Revenue Note (Sol Vista Apartments) 2026 Series A (the “Note”) in the aggregate principal amount of $_________________; WHEREAS, the Note will be executed and delivered pursuant to a Funding Loan Agreement, dated as of __________1, 2026 (the “Funding Loan Agreement”), among the Governmental Lender, Citibank, N.A., the Funding Lender (the “Funding Lender”) and Wilmington Trust, National Association, as fiscal agent (the “Fiscal Agent”); WHEREAS, the proceeds of the Note will be used to fund a loan (the “Borrower Loan” as defined in the Funding Loan Agreement) to the Owner to finance the acquisition, construction and equipping of the multifamily rental housing project known as Sol Vista Apartments, located on the real property site described in Exhibit A hereto (as further described herein, the “Project”); WHEREAS, in order to assure the Governmental Lender and the owner of the Note that interest on the Note will be excluded from gross income for federal income tax purpose s under Section 103 of the Internal Revenue Code of 1986 (the “Code”), and to satisfy the public purposes for which the Note are authorized to be executed and delivered under the Housing Law, and to satisfy the purposes of the Governmental Lender in determining to execute and deliver the Note, certain limits on the occupancy of units in the Project need to be established and certain other requirements need to be met; NOW, THEREFORE, in consideration of the execution and delivery of the Note by the Governmental Lender and the mutual covenants and undertakings set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Governmental Lender and the Owner hereby agree as follows: Section 1. Definitions and Interpretation. Unless the context otherwise requires, the capitalized terms used herein shall have the respective meanings assigned to them in the recitals hereto, in this Section 1, or in the Funding Loan Agreement. Page 517 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2 4907-9342-2735v5/024036-0105 “Administrator” means the Governmental Lender or any administrator or program monitor appointed by the Governmental Lender to administer this Regulatory Agreement, and any successor administrator appointed by the Governmental Lender. “Area” means the Metropolitan Statistical Area or County, as applicable, in which the Project is located, as defined by the United States Department of Housing and Urban Development. “Available Units” means residential units in the Project that are actually occupied and residential units in the Project that are vac ant and have been occupied at least once after becoming available for occupancy, provided that (a) a residential unit that is vacant on the later of (i) the date the Project is acquired or (ii) the Closing Date is not an Available Unit and does not become an Available Unit until it has been occupied for the first time after such date, and (b) a residential unit that is not available for occupancy due to renovations is not an Available Unit and does not become an Available Unit until it has been occupied for the first time after the renovations are completed. “CDLAC” means the California Debt Limit Allocation Committee or its successors. “CDLAC Conditions” has the meaning given such term in Section 28(a). “CDLAC Resolution” means CDLAC Resolution No. 25-352 attached hereto as Exhibit D, adopted on December 10, 2025, and relating to the Project, as such resolution may be modified or amended from time to time. “Certificate of Continuing Program Compliance” means the Certificate to be filed by the Owner with the Administrator, on behalf of the Governmental Lender, pursuant to Section 4(f) hereof, which shall be substantially in the form attached as Exhibit C hereto or in such other comparable form as may be provided by the Governmental Lender to the Owner, or as otherwise approved by the Governmental Lender. “City” means the City of Chula Vista, California. “Closing Date” means the date the Note is originally executed and delivered. “Compliance Period” means the period beginning on the first day of the Qualified Project Period and ending on the later of the end of the Qualified Project Period or such later date as set forth in Section 28(c) of this Regulatory Agreement. “County” means the County of San Diego, California. “Deed of Trust” means the “Security Instrument” as defined in the Funding Loan Agreement, as the same may be modified, amended or supplemented from time to time. “Gross Income” means the gross income of a person (together with the gross income of all persons who intend to reside with such person in one residential unit) as calculated in the manner prescribed in under Section 8 of the Housing Act. “Funding Lender” means Citibank N.A., a national banking association and any successor and assign. “Housing Act” means the United States Housing Act of 1937, as amended, or its successor. Page 518 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 3 4907-9342-2735v5/024036-0105 “Housing Law” means Chapter 1 of Part 2 of Division 24 of the California Health and Safety Code, as amended. “Income Certification” means a Tenant Income Certification and a Tenant Income Certification Questionnaire in the form attached as Exhibit B hereto or in such other comparable form as may be provided by the Governmental Lender to the Owner, or as otherwise approved by the Governmental Lender. “Investor Limited Partner” means WNC Holding, LLC, a California limited liability company, or any other successor entity or assignee in such entity’s capacity as an equity investor in the Owner. “Loan Agreement” means the “Borrower Loan Agreement” as defined in the Funding Loan Agreement, as the same may be modified, amended or supplemented from time to time. “Low Income Tenant” means a tenant occupying a Low Income Unit. “Low Income Unit” means any Available Unit if the aggregate Gross Income of all tenants therein does not exceed limits determined in a manner consistent with determinations of “low-income families” under Section 8 of the Housing Act, provided that the percentage of median gross income that qualifies as low income hereunder shall be sixty percent (60%) of median gross income for the Area, with adjustments for family size. A unit occupied by one or more students shall only constitute a Low Income Unit if such students meet the requirements of Section 142(d)(2)(C) of the Code. The determination of an Available Unit’s status as a Low Income Unit shall be made by the Owner upon commencement of each lease term with respect to such unit, and annually thereafter, on the basis of an Income Certification executed by each tenant. “Manager” means a property manager meeting the requirements of Section 27 hereof. ______________________, a ______________________, is hereby approved as the initial Manager. “Noteowner Representative” or “Noteowner” means during any period in which the Note is outstanding, the “Noteowner” under and as such term is defined in the Funding Loan Ag reement. If at any time the Note is not outstanding then there is no Noteowner Representative and references herein to the Noteowner Representative are void and inapplicable and shall be disregarded. The initial Noteowner Representative is the Funding Lender. “Project” means the 95-unit plus 1 manager’s unit multifamily rental housing development located in the City of Chula Vista, San Diego County on the real property site described in Exhibit A hereto, consisting of those facilities, including real prope rty, structures, buildings, fixtures or equipment situated thereon, as it may at any time exist, the acquisition, construction and equipping of which facilities are to be financed, in whole or in part, from the proceeds of the sale of the Note or the proceeds of any payment by the Owner pursuant to the Loan Agreement, and any real property, structures, buildings, fixtures or equipment acquired in substitution for, as a renewal or replacement of, or a modification or improvement to, all or any part of the fa cilities described in the Loan Agreement. “Qualified Project Period” means the period beginning on the Closing Date and ending on the later of (a) the date which is 55 years after the date on which fifty percent (50%) of the dwelling units in the Project are occupied, (b) the first day on which no Tax-Exempt obligations with respect to the Page 519 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 4 4907-9342-2735v5/024036-0105 Project are Outstanding, or (c) the date on which any assistance provided with respect to the Project under Section 8 of the United States Housing Act of 1937 terminates. “Regulations” means the Income Tax Regulations of the Department of the Treasury applicable under the Code from time to time. “Regulatory Agreement” means this Regulatory Agreement and Declaration of Restrictive Covenants, as it may be supplemented and amended from time to time. “Rent-Restricted” means, with respect to any Unit, that the Rental Payments with respect to such unit is not more than 30% of the imputed income limitation applicable to such Unit pursuant to Section §42(g)(2)(C) of the Code, as modified by Appendix D hereto, if applicable. “Rental Payments” means the rental payments paid by the occupant of a unit, excluding any supplemental rental assistance to the occupant from the State, the federal government, or any other public agency, but including any mandatory fees or charges imposed on the occupant by the Owner as a condition of occupancy of the unit. “Tax-Exempt” means with respect to interest on any obligations of a state or local government, including the Note, that such interest is excluded from gross income for federal income tax purposes; provided, however, that such interest may be includable as an item of tax preference or otherwise includable directly or indirectly for purposes of calculating other tax liabilities, including any alternative minimum tax or environmental tax, under the Code. “Tax Certificate” means the “Tax Certificate” as defined in the Funding Loan Agreement. “TCAC” means the California Tax Credit Allocation Committee. “Transfer” means the conveyance, assignment, sale or other disposition of all or any portion of the Project; and shall also include, without limitation to the foregoing, the following: (1) an installment sales agreement wherein Owner agrees to sell the Project or any part thereof for a price to be paid in installments; and (2) an agreement by the Owner leasing all or a substantial part of the Project to one or more persons or entities pursuant to a single or related transactions. “Very Low Income Tenant” means a tenant occupying a Very Low Income Unit. “Very Low Income Unit” means any Available Unit if the aggregate Gross Income of all tenants therein does not exceed limits determined in a manner consistent with determinations of “very low-income families” under Section 8 of the Housing Act, provided that the percentage of median gross income that qualifies as very low income hereunder shall be fifty percent (50%) of median gross income for the Area, with adjustments for family size. A unit occupied by one or more students shall only constitute a Very Low Income Unit if such students meet the requirements of Section 142(d)(2)(C) of the Code. The determination of an Available Unit's status as a Very Low Income Unit shall be made by the Owner upon commencement of each lease term with respect to such unit, and annually thereafter, on the basis of an Income Certification executed by each tenant. Unless the context clearly requires otherwise, as used in this Regulatory Agreement, words of any gender shall be construed to include each other gender when appr opriate and words of the singular number shall be construed to include the plural number, and vice versa, when appropriate. Page 520 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 5 4907-9342-2735v5/024036-0105 This Regulatory Agreement and all the terms and provisions hereof shall be construed to effectuate the purposes set forth herein and to sustain the validity hereof. The titles and headings of the sections of this Regulatory Agreement have been inserted for convenience of reference only, and are not to be considered a part hereof and shall not in any way modify or restrict any of the terms or provisions hereof or be considered or given any effect in construing this Regulatory Agreement or any provisions hereof or in ascertaining intent, if any question of intent shall arise. The parties to this Regulatory Agreement acknowledge that each party and their respective counsel have participated in the drafting and revision of this Regulatory Agreement. Accordingly, the parties agree that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Regulatory Agreement or any supplement or exhibit hereto. Section 2. Representations, Covenants and Warranties of the Owner. (a) The Owner hereby incorporates herein, as if set forth in full herein, each of the representations, covenants and warranties of the Owner contained in the Tax Certificate and the Loan Agreement relating to the Project. (b) The Owner hereby represents and warrants that the Project is located entirely within the City. (c) The Owner acknowledges, represents and warrants that it understands the nature and structure of the transactions contemplated by this Regulatory Agreement; that it is familiar with the provisions of all of the documents and instruments relating to the Note to which it is a party or of which it is a beneficiary; that it understands the financial and legal risks inherent in such transactions; and that it has not relied on the Governmental Lender for any guidance or expertise in analyzing the financial or other consequences of such financing transactions or otherwise relied on the Governmental Lender in any manner except to execute and deliver or issue, as the case may be, the Note in order to provide funds to assist the Owner in constructing and developing the Project. Section 3. Qualified Residential Rental Project. The Owner hereby acknowledges and agrees that the Project is to be owned, managed and operated as a “residential rental project” (within the meaning of Section 142(d) of the Code) for a term equal to the Compliance Period. To that end, and for the term of this Regulatory Agreement, the Owner hereby represents, covenants, warrants and agrees as follows: (a) The Project will be constructed, developed and operated for the purpose of providing multifamily residential rental property. The Owner will own, manage and operate the Project as a project to provide multifamily residential rental property comprised of a building or structure or several interrelated buildings or structures, together with any functionally rela ted and subordinate facilities, and no other facilities, in accordance with Section 142(d) of the Code, Section 1.103-8(b) of the Regulations and the provisions of the Housing Law, and in accordance with such requirements as may be imposed thereby on the Project from time to time. (b) All of the dwelling units in the Project (except for not more than two units set aside for a resident manager or other administrative use) will be similarly constructed units, and each Page 521 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 6 4907-9342-2735v5/024036-0105 dwelling unit in the Project will contain complete separate and distinct facilities for living, sleeping, eating, cooking and sanitation for a single person or a family, including a sleeping area, bathing and sanitation facilities and cooking facilities equipped with a cooking range, refrigerator and sink. (c) None of the dwelling units in the Project will at any time be utilized on a transient basis or rented for a period of less than 30 consecutive days, or will ever be used as a hotel, motel, dormitory, fraternity house, sorority house, rooming house, nursing home, hospital, sanitarium, rest home or trailer court or park; provided that the use of certain units for tenant guests on an intermittent basis shall not be considered transient use for purposes of this Regulatory Agreement. (d) No part of the Project will at any time during the Compliance Period be owned by a cooperative housing corporation, nor shall the Owner take any steps in connection with a conversion to such ownership or use, and the Owner will not take any steps in connection with a conversio n of the Project to condominium ownership during the Compliance Period (except that the Owner may obtain final map approval and the Final Subdivision Public Report from the California Department of Real Estate and may file a condominium plan with the City). (e) All of the Available Units in the Project will be available for rental during the period beginning on the date hereof and ending on the termination of the Compliance Period on a continuous, “first-come, first-served” basis to members of the general public; which for purposes of this Regulatory Agreement means the general population, and the Owner will not give preference to any particular class or group in renting the dwelling units in the Project, except to the extent that dwelling units are required to be leased or rented in such a manner that they constitute Low Income Units or Very Low Income Units. (f) The Project consists of a parcel or parcels that are contiguous except for the interposition of a road, street or stream, and all of the facilities of the Project comprise a single geographically and functionally integrated project for residential rental property, as evidenced by the ownership, management, accounting and operation of the Project. (g) No dwelling unit in the Project shall be occupied by the Owner ; provided, however, that if the Project contains five or more dwelling units, this provision shall not be construed to prohibit occupancy of not more than one dwelling unit by a resident manager or maintenance personnel, any of whom may be the Owner. Section 4. Low Income Tenants and Very Low Income Tenants; Reporting Requirements. Pursuant to the requirements of the Code, the Owner hereby represents, warrants and covenants as follows: (a) During the Compliance Period, no less than thirty percent (30%) of the total number of completed units in the Project shall at all times be Low Income Units and ten percent (10%) of the total number of completed units in the Project shall at all times be Very Low Income Units. For the purposes of this paragraph (a), a vacant unit that was most recently a Low Income Unit or Very Low Income Unit is treated as a Low Income Unit or Very Low Income Unit, respectively, until reoccupied, other than for a temporary period of not more than 31 days, at which time the character of such unit shall be redetermined. (b) No tenant qualifying as a Low Income Tenant or Very Low Income Tenant upon initial occupancy shall be denied continued occupancy of a unit in the Project because, after Page 522 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 7 4907-9342-2735v5/024036-0105 admission, the aggregate Gross Income of all tenants in the unit occ upied by such Low Income Tenant or Very Low Income Tenant, respectively, increases to exceed the qualifying limit for a Low Income Unit or Very Low Income Unit, respectively. However, should the aggregate Gross Income of tenants in a Low Income Unit or Very Low Income Unit as of the most recent determination thereof, exceed one hundred forty percent (140%) of the applicable income limit for a Low Income Unit or Very Low Income Unit, respectively, occupied by the same number of tenants, the next available unit of comparable or smaller size must be rented to (or held vacant and available for immediate occupancy by) Low Income Tenant(s) or Very Low Income Tenant(s), respectively. The unit occupied by such tenants whose aggregate Gross Income exceeds such appl icable income limit shall continue to be treated as a Low Income Unit or Very Low Income Unit for purposes of the requirements of Section 4(a) hereof unless and until an Available Unit of comparable or smaller size is rented to persons other than Low Income Tenants or Very Low Income Tenants, respectively. (c) For the Compliance Period, the Owner will obtain, complete and maintain on file Income Certifications for each Low Income Tenant and Very Low Income Tenant, including (i) an Income Certification dated immediately prior to the initial occupancy of such Low Income Tenant or Very Low Income Tenant in the unit and a second Income Certification dated one year after the Low Income Tenant’s or Very Low Income Tenant’s initial move-in date, and (ii) thereafter, an annual Income Certification with respect to each Low Income Tenant and Very Low Income Tenant. In lieu of obtaining the annual Income Certifications required by clause (ii) of the preceding sentence, the Owner may, with respect to any particular twelve -month period ending December 1, deliver to the Administrator no later than fifteen days after such date a certification that as of December 1, no residential unit in the Project was occupied within the preceding twelve months by a new resident whose income exceeded the limit applicable to Low Income Tenants or Very Low Income upon admission to the Project. The Administrator may at any time and in its sole and absolute discretion notify the Owner in writing that it will no longer accept certifications of the Owner made pursuant to the preceding sentence and that the Owner will thereafter be required to obtain annual Income Certifications for tenants. The Owner will also provide such additional information as may be required in the future by the Code, the State or the Governmental Lender, as the same may be amended from time to time, or in such other form and manner as may be required by applicable rules, rulings, policies, procedures, Regulations or other official statements now or hereafter promulgated, proposed or made by the Department of the Treasury or the Internal Revenue Service with respect to Tax-Exempt obligations. Upon request of the Administrator or the Governmental Lender, copies of Income Certifications for Low Income Tenants and Very Low Income Tenants commencing or continuing occupation of a Low Income Unit or Very Low Income Unit, respectively, shall be submitted to the Administrator or the Governmental Lender, as requested. (d) The Owner shall make a good faith effort to verify that the income information provided by an applicant in an Income Certification is accurate by taking one or more of the following steps as a part of the verification process: (1) obtain pay stubs for the three most recent pay periods, (2) obtain an income tax return for the most recent tax year, (3) obtain a credit report or conduct a similar type credit search, (4) obtain an income verification from the applicant’s current employer, (5) obtain an income verification from the Social Security Administration and/or the California Department of Social Services if the applicant receives assistance from either of such agencies, or (6) if the applicant is unemployed and does not have an income tax return, obtain another form of independent verification reasonably acceptable to the Governmental Lender. (e) The Owner will maintain complete and accurate records pertaining to the Low Income Units and Very Low Income Units, and will permit any duly authorized representative of the Page 523 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 8 4907-9342-2735v5/024036-0105 Governmental Lender, the Department of the Treasury or the Internal Revenue Service to inspect the books and records of the Owner pertaining to the Project, including those records pertaining to the occupancy of the Low Income Units and Very Low Income Units. (f) The Owner will prepare and submit to the Administrator, on behalf of the Governmental Lender, not less than annually, commencing not less than one year after the Closing Date, a Certificate of Continuing Program Compliance executed by the Owner in substantially the form attached hereto as Exhibit C. During the Compliance Period, the Owner shall submit a completed Internal Revenue Code Form 8703 or such other annual certification as required by the Code with respect to the Project, to the Secretary of the Treasury on or before March 31 of each year (or such other date as may be required by the Code). (g) For the Compliance Period, all tenant leases or rental agreements shall be subordinate to this Regulatory Agreement and the Deed of Trust. All leases pertaining to Low Income Units or Very Low Income Units shall contain clauses, among others, wherein each tenant who occupies a Low Income Unit or Very Low Income Unit: (i) certifies the accuracy of the statements made by such tenant in the Income Certification; (ii) agrees that the family income and other eligibility requirements shall be deemed substantial and material obligations of the tenancy of such tenant, that such tenant will comply promptly with all requests for information with respect thereto from the Owner, the Governmental Lender or the Administrator on behalf of the Governmental Lender, and that the failure to provide accurate information in the Income Certification or refusal to comply with a request for information with respect thereto shall be deemed a violation of a substantial obligation of the tenancy of such tenant; (iii) acknowledges that the Owner has relied on the statements made by such tenant in the Income Certification and supporting information supplied by the Low Income Tenant or Very Low Income Tenant in determining qualification for occupancy of a Low Income Unit or Very Low Income Unit, respectively, and that any material misstatement in such certification (whether or not intentional) will be cause for immediate termination of such lease or rental agreement; and (iv) agrees that the tenant’s income is subject to annual certification in accordance with Section 4(c) and that if upon any such certification the aggregate Gross Income of tenants in such unit exceeds the applicable income limit under Section 4(b), the unit occupied by such tenant may cease to qualify as a Low Income Unit or Very Low Income Tenant, respectively, and such unit’s rent may be subject to increase. For purposes of this Section 4, no unit occupied by a residential manager shall be treated as a rental unit during the time of such occupation. Section 5. Tax-Exempt Status of Note. The Owner and the Governmental Lender, as applicable, each hereby represents, warrants and agrees as follows: (a) The Owner and the Governmental Lender will not knowingly take or permit, or omit to take or cause to be taken, as is appropriate, any action that would adversely affect the Tax -Exempt nature of the interest on the Note and, if either of them should take or permit, or omit to take or cause to be taken, any such action, it will take all lawful actions necessary to rescind or correct such actions or omissions promptly upon obtaining knowledge thereof. (b) The Owner and the Governmental Lender will file of record such documents and take such other steps as are necessary, in the written opinion of Tax Counsel fi led with the Governmental Lender (with a copy to the Owner), in order to insure that the requirements and restrictions of this Regulatory Agreement will be binding upon all owners of the Project, including, but not limited to, Page 524 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 9 4907-9342-2735v5/024036-0105 the execution and recordation of this Regulatory Agreement in the real property records of the County. Section 6. Requirements of the Housing Law. In addition to the other requirements set forth herein, the Owner hereby agrees that it shall comply with each of the requirements of Section 52080 of the Housing Law, including the following: (a) Not less than 30% of the total number of units in the Project shall be Low Income Units and not less than 10% of the total number of units in the Project shall be Very Low Income Units. The units made available to meet these requirements shall be of comparable quality and offer a range of sizes and numbers of bedrooms comparable to the units that are available to other tenants in the Project. (b) The Rental Payments for the Low Income Units paid by the tenants thereof (excluding any supplemental rental assistance from the State, the federal government or any other public agency to those tenants or on behalf of those units) shall not exceed the Rent -Restricted amount for such Low Income Units. The Rental Payments for the Very Low Income Units paid by the tenants thereof (excluding any supplemental rental assistance from the State, the federal government or any other public agency to those tenants or on behalf of those units) shall not exceed the Rent-Restricted amount for such Very Low Income Units. (c) The Owner shall accept as tenants, on the same basis as all other prospective tenants, low-income persons who are recipients of federal certificates or vouchers for rent subsidies pursuant to the existing program under Section 8 of the Housing Act. The Owner shall not permit any selection criteria to be applied to Section 8 certificate or voucher holders that is more burdensome than the criteria applied to all other prospective tenants. (d) The units reserved for occupancy as required by Section 4(a) shall remain available on a priority basis for occupancy at all times on and after the Closing Date with respect to the Note and continuing through the Compliance Period. (e) During the three (3) years prior to the expiration of the Com pliance Period, the Owner shall continue to make available, to eligible households, Low Income Units and Very Low Income Units that have been vacated to the same extent that nonreserved units are made available to noneligible households. (f) Following the expiration or termination of the Compliance Period, except in the event of foreclosure and payoff of the Note, deed in lieu of foreclosure, eminent domain, or action of a federal agency preventing enforcement, units reserved for occupancy as required by subsec tion (a) of this Section shall remain available to any eligible tenant occupying a reserved unit at the date of such expiration or termination, at the rent determined by subsection (b) of this Section, until the earliest of (1) the household’s income exceeds 140% of the maximum eligible income specified above, (2) the household voluntarily moves or is evicted for good cause (as defined in the Housing Law), (3) 60 years after the date of the commencement of the Compliance Period, or (4) the Owner pays the relocation assistance and benefits to households as provided in Section 7264(b) of the California Government Code. (g) Except as set forth in Section 13 hereof, the covenants and conditions of this Regulatory Agreement shall be binding upon successors in interest of the Owner. Page 525 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 10 4907-9342-2735v5/024036-0105 (h) This Regulatory Agreement shall be recorded in the office of the County recorder, and shall be recorded in the grantor-grantee index under the name of the Owner as grantor and under the name of the Governmental Lender as grantee. Section 7. Requirements of the Governmental Lender. In addition to other requirements set forth herein and to the extent not prohibited by the requirements set forth in Sections 4 through 6 hereof, the Owner hereby agrees to comply with each of the requirements of the Governmental Lender set forth in this Section 7, as follows: (a) For the duration of the Compliance Period, notwithstanding any retirement of the Note or termination of the Loan Agreement, the Owner will pay to the Governmental Lender all of the amounts required to be paid by the Owner under the Loan Agreement and Section 19 hereof and will indemnify the Governmental Lender as provided in Section 9 of this Regulatory Agreement. (b) All tenant lists, applications and waiting lists relating to the Project shall at al l times be kept separate and identifiable from any other business of the Owner and shall be maintained as required by the Governmental Lender, in a reasonable condition for proper audit and subject to examination during business hours by representatives of the Governmental Lender upon reasonable advance notice to the Owner. (c) The Owner acknowledges that the Governmental Lender has appointed the Administrator to administer this Regulatory Agreement and to monitor performance by the Owner of the terms, provisions and requirements hereof. The Owner shall comply with any reasonable request made by the Administrator or the Governmental Lender to deliver to any such Administrator, in addition to or instead of the Governmental Lender, any reports, notices or other d ocuments required to be delivered pursuant hereto, and to make the Project and the books and records with respect thereto available for inspection by the Administrator as an agent of the Governmental Lender. The fees and expenses of the Administrator shall be paid by the Governmental Lender. (d) For purposes of Section 6(b), the base rents shall be adjusted for household size, based upon the following unit sizes and household sizes, as permitted by TCAC. (e) Notwithstanding any other provisions of this Regulatory Agreement, in no event shall all of the rent, including the portion paid by the Low Income Tenant and any other person or entity, collected by Owner (the “Total Rent”) for any Low Income Unit exceed the amount of rent set forth in this Regulatory Agreement. Total Rent includes all payments made by the Low Income Tenant and all subsidies received by Owner. In the case of Low Income Tenants receiving Section 8 benefits, Owner acknowledges that it shall not accept any subsidy or payment that would cause the Total Rent received for any Low Income Unit to exceed the maximum rents allowed by this Regulatory Agreement for such Low Income Unit. Should Owner receive Total Rent in excess of the allowable maximum rent set forth in this Regulatory Agreement for a Lo w Income Unit, Owner agrees to immediately notify the Governmental Lender and reimburse the Governmental Lender for any such overpayment. Any of the foregoing requirements of the Governmental Lender contained in this Section 7 may be expressly waived by the Governmental Lender, in its sole discretion, in writing, but (i) no waiver by the Governmental Lender of any requirement of this Section 7 shall, or shall be deemed to, extend to or affect any other provision of this Regulatory Agreement except to the ex tent the Governmental Lender has received an opinion of Tax Counsel that any such provision is not required Page 526 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 11 4907-9342-2735v5/024036-0105 by the Housing Law and may be waived without adversely affecting the exclusion from gross income of interest on the Note for federal income tax purposes; and (ii) any requirement of this Section 7 shall be void and of no force and effect if the Governmental Lender and the Owner receive a written opinion of Tax Counsel to the effect that compliance with any such requirement would cause interest on the Note to cease to be Tax-Exempt or to the effect that compliance with such requirement would be in conflict with the Housing Law or any other state or federal law. In the event of any conflict between this Regulatory Agreement and any other regulatory agreement regarding the Project, the more restrictive terms shall prevail. Section 8. Modification of Covenants. The Owner and the Governmental Lender hereby agree as follows: (a) To the extent any amendments to the Housing Law, the Regulations or the Code shall, in the written opinion of Tax Counsel filed with the Governmental Lender and the Owner, retroactively impose requirements upon the ownership or operation of the Project more restrictive than those imposed by this Regulatory Agreement, and if such requirements are ap plicable to the Project and compliance therewith is necessary to maintain the validity of, or the Tax -Exempt status of interest on the Note, this Regulatory Agreement shall be deemed to be automatically amended to impose such additional or more restrictive requirements. (b) To the extent that the Housing Law, the Regulations or the Code, or any amendments thereto, shall, in the written opinion of Tax Counsel filed with the Governmental Lender and the Owner, impose requirements upon the ownership or operation of the Project less restrictive than imposed by this Regulatory Agreement, this Regulatory Agreement may be amended or modified to provide such less restrictive requirements but only by written amendment signed by the Governmental Lender, at its sole discretion, and the Owner, with the consent of the Noteowner Representative, and only upon receipt by the Governmental Lender of the written opinion of Tax Counsel to the effect that such amendment will not affect the Tax -Exempt status of interest on the Note or violate the requirements of the Housing Law, and otherwise in accordance with Section 21 hereof. (c) The Owner and the Governmental Lender shall execute, deliver and, if applicable, file of record any and all documents and instruments necessary to effectuate t he intent of this Section 8. Section 9. Indemnification; Other Payments. To the fullest extent permitted by law, the Owner agrees to indemnify, hold harmless and defend the Governmental Lender and each of its officers, governing members, directors, officials, employees, attorneys, agents, and program participants (collectively, the “Indemnified Parties”), against any and all losses, damages, claims, actions, liabilities, costs and expenses of any conceivable nature, kind or character (including, without limitation, reasonable attorneys’ fees and expenses, litigation and court costs, amounts paid in settlement and amounts paid to discharge judgments) to which the Indemnified Parties, or any of them, may become subject under or any statutory law (including federal or st ate securities laws) or at common law or otherwise, arising out of or based upon or in any way relating to: (i) the Note, the Funding Loan Agreement, the Loan Agreement, this Regulatory Agreement, or the Tax Certificate and all documents related thereto, or th e execution or amendment hereof or thereof or in connection with transactions contemplated hereby or Page 527 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 12 4907-9342-2735v5/024036-0105 thereby, including, as applicable, the execution and delivery or transfer of interests in the Note; (ii) any material act or omission of the Owner or any of its agents, contractors, servants, employees or licensees in connection with the Loan or the Project, the operation of the Project, or the condition, environmental or otherwise, occupancy, use, possession, conduct or management of work done in or about, or fr om the planning, design, acquisition, installation, construction or rehabilitation of, the Project or any part thereof; (iii) any lien or charge upon payments by the Owner to the Governmental Lender or any taxes (including, without limitation, all ad valorem taxes and sales taxes), assessments, impositions and other charges imposed on the Governmental Lender in respect of any portion of the Project; (iv) any violation of any environmental law, rule or regulation with respect to, or the release of any toxic substance from, the Project or any part thereof; (v) the defeasance and/or redemption, in whole or in part, of the Note; (vi) any material untrue statement or material misleading statement or alleged material untrue statement or alleged material misleading statement of a material fact contained in any offering statement or disclosure document for the Note or any of the documents relating to the Note, or any omission or alleged omission from any offering statement or disclosure document for the Note of any material fact necessary to be stated therein in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; or (vii) any declaration of taxability of interest on the Note, or allegations (or regulatory inquiry) that interest on the Note is taxable for federal tax purposes; except to the extent such damages are caused by the willful misconduct or gross negligence of such Indemnified Party. In the event that any action or proceeding is brought against any Indemnified Party with respect to which indemnity may be sought hereunder, the Owner, upon written notice from the Indemnified Party, shall assume the investigation and defense thereof, including the employment of counsel selected by the Indemnified Party, and shall assume the payment of all expenses related thereto, with full power to litigate, compromise or settle the same in its sole discretion; provided that the Indemnified Party shall have the right to review and approve or disapprove any such compromise or settlement. Each Indemnified Party shall have the right to employ separate counsel in any such action or proceeding and participate in the investigation and defense thereof, and the Owner shall pay the reasonable fees and expenses of such separate counsel; provided, however, that such Indemnified Party may only employ separate counsel at the expense of the Owner if in the judgment of such Indemnified Party a conflict of interest exists by reason of common representation or if all parties commonly represented do not agree as to the action (or inaction) of counsel. In addition to the foregoing, the Owner shall pay upon demand all of the fees and expenses paid or incurred by the Governmental Lender in enforcing the provisions hereof. In addition thereto, the Owner will pay upon demand all of the fees and expenses paid or incurred by the Governmental Lender in enforcing the provisions hereof, as more fully set forth in the Loan Agreement. Page 528 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 13 4907-9342-2735v5/024036-0105 The provisions of this Section 9 shall survive the final payment or defeasance of the Note and the term of this Regulatory Agreement. Section 10. Consideration. The Governmental Lender has agreed to execute and deliver the Note to provide funds to lend to the Owner to finance the Project, all for the purpose, among others, of inducing the Owner to acquire, construct, develop and operate the Project. In consideration of the execution and delivery of the Note by the Governmental Lender, the Owner has entered into this Regulatory Agreement and has agreed to restrict the uses to which this Project can be put on the terms and conditions set forth herein. Section 11. Reliance. The Governmental Lender and the Owner hereby recognize and agree that the representations and covenants set forth herein may be relied upon by all persons, including but not limited to the Administrator, interested in the legality and validity of the Note, in the exemption from California personal income taxation of interest on the Note and in the Tax- Exempt status of the interest on the Note. In performing their duties and obligations hereunder, the Governmental Lender, the Administrator may rely upon statements and certificates of the Low Income Tenants, and upon audits of the books and records of the Owner pertaining to the Project. In addition, the Governmental Lender may consult with counsel, and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by the Governmental Lender hereunder in good faith and in conformity with such opinion. Section 12. Transfer of the Project. For the Compliance Period, the Owner shall not Transfer the Project, in whole or in part, without the prior written consent of the Governmental Lender, which consent shall not be unreasonably withheld or delayed if the following c onditions are satisfied: (A) the receipt by the Governmental Lender of evidence acceptable to the Governmental Lender that (1) the Owner shall not be in default hereunder or under the Loan Agreement, if in effect (which may be evidenced by a Certificate of Continuing Program Compliance), or the transferee undertakes to cure any defaults of the Owner to the reasonable satisfaction of the Governmental Lender; (2) the continued operation of the Project shall comply with the provisions of this Regulatory Agreement; (3) either (a) the transferee or its Manager has at least three years’ experience in the ownership, operation and management of similar size rental housing projects, and at least one year’s experience in the ownership, operation and management of ren tal housing projects containing below- market-rate units, without any record of material violations of discrimination restrictions or other state or federal laws or regulations or local governmental requirements applicable to such projects, or (b) the transferee agrees to retain a Manager with the experience and record described in subclause (a) above, or (c) the transferring Owner or its management company will continue to manage the Project, or another management company reasonably acceptable to the Govern mental Lender will manage, for at least one year following such Transfer and, if applicable, during such period the transferring Owner or its management company will provide training to the transferee and its manager in the responsibilities relating to the Low Income Units; and (4) the person or entity that is to acquire the Project does not have pending against it, and does not have a history of significant and material building code violations or complaints concerning the maintenance, upkeep, operation, and regulatory agreement compliance of any of its projects as identified by any local, state or federal regulatory agencies; (B) the execution by the transferee of any document reasonably requested by the Governmental Lender with respect to the assumption o f the Owner’s obligations under this Regulatory Agreement and the Loan Agreement (if then in effect), including without limitation an instrument of assumption hereof and thereof, and delivery to the Governmental Lender of an opinion of such transferee’s counsel to the effect that each such document and this Regulatory Agreement are valid, binding and enforceable obligations of such transferee, subject to bankruptcy and other Page 529 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 14 4907-9342-2735v5/024036-0105 standard limitations affecting creditor’s rights; (C) receipt by the Governmental Lender of an opinion of Tax Counsel to the effect that any such Transfer will not adversely affect the Tax -Exempt status of interest on the Note; (D) receipt by the Governmental Lender of all fees and/or expenses then currently due and payable to the Governmental Lender by the Owner; and (E) receipt by the Governmental Lender of evidence of satisfaction of compliance with the provisions of Section 28(d)(i) related to notice to CDLAC of transfer of the Project. It is hereby expressly stipulated and agreed that any Transfer of the Project in violation of this Section 12 shall be null, void and without effect, shall cause a reversion of title to the Owner, and shall be ineffective to relieve the Owner of its obligations under this Regulatory Agreement. The written consent of the Governmental Lender to any Transfer of the Project shall constitute conclusive evidence that the Transfer is not in violation of this Section 12. Nothing in this Section shall affect any provision of any other document or instrument between the Owner and any other party which requires the Owner to satisfy certain conditions or obtain the prior written consent of such other party in order to Transfer the Project. Upon any Transfer that complies with this Regulatory Agreement, the Owner shall be fully released from its obligations hereunder to the extent such obligations have been fully assumed in writing by the transferee of the Project. The foregoing notwithstanding, the Project may be transferred pursuant to a foreclosure, exercise of power of sale or deed in lieu of foreclosure or comparable conversion under the Deed of Trust without the consent of the Governmental Lender or compliance with the provisions of this Section 12. The Governmental Lender hereby approves the transfer of limite d partnership interests in the Owner, including, without limitation, the transfer of limited partnership interests in the Owner and the transfer of interests in the limited partners of Owner. The Governmental Lender hereby agrees that the removal and replacement of one or more of the general partners pursuant to the Owner’s partnership agreement shall not require the consent of Governmental Lender. For the Compliance Period, the Owner shall not: (1) encumber any of the Project or grant commercial leases of any part thereof, or permit the conveyance, transfer or encumbrance of any part of the Project, except for (A) encumbrances permitted under the Deed of Trust, or (B) a Transfer in accordance with the terms of this Regulatory Agreement, in each case upon receipt by the Governmental Lender of an opinion of Tax Counsel to the effect that such action will not adversely affect the Tax-Exempt status of interest on the Note (provided that such opinion will not be required with respect to any encumbrance, lease o r transfer relating to a commercial operation or ancillary facility that will be available for tenant use and is customary to the operation of multifamily housing developments similar to the Project); (2) demolish any part of the Project or substantially subtract from any real or personal property of the Project, except to the extent that what is demolished or removed is replaced with comparable property or such demolition or removal is otherwise permitted by the Loan Agreement or the Deed of Trust; or (3) permit the use of the dwelling accommodations of the Project for any purpose except rental residences. Section 13. Term. This Regulatory Agreement and all and several of the terms hereof shall become effective upon its execution and delivery, and shall remain in full force and effect for the period provided herein and shall terminate as to any provision not otherwise provided with a specific termination date and shall terminate in its entirety at the end of the Compliance Period, it being expressly agreed and understood that the provisions hereof are intended to survive the retirement of the and discharge of the Funding Loan Agreement, and the Loan Agreement. Page 530 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 15 4907-9342-2735v5/024036-0105 The terms of this Regulatory Agreement to the contrary notwithstanding, the requirements of this Regulatory Agreement shall terminate and be of no further force and effect in the event of involuntary noncompliance with the provisions of this Regulatory Agreement caused by fire or other casualty, seizure, requisition, foreclosure or transfer of title by deed in lieu of foreclosure, change in a federal law or an action of a federal agency after the Closing Date, which prevents the Governmental Lender from enforcing such provisions, or condemnation or a similar event, but only if, within a reasonable period, either the Note is retired or amounts received as a consequence of such event are used to provide a project that meets the requirements hereof; provided, however, that the preceding provisions of this sentence shall cease to apply and the restrictions contained herein shall be reinstated if, at any time subsequent to the termination of such provisions as the result of the foreclosure or the delivery of a deed in l ieu of foreclosure or a similar event, the Owner or any related person (within the meaning of Section 1.103-10(e) of the Regulations) obtains an ownership interest in the Project for federal income tax purposes. The Owner hereby agrees that, following any foreclosure, transfer of title by deed in lieu of foreclosure or similar event, neither the Owner nor any such related person as described above will obtain an ownership interest in the Project for federal tax purposes. Notwithstanding any other provision of this Regulatory Agreement, this Regulatory Agreement may be terminated upon agreement by the Governmental Lender, Funding Lender and the Owner, with the consent of CDLAC, upon receipt by the Governmental Lender and Funding Lender of an opinion of Tax Counsel to the effect that such termination will not adversely affect the exclusion from gross income of interest on the Note for federal income tax purposes. Upon the termination of the terms of this Regulatory Agreement, the parties hereto agree to execu te, deliver and record appropriate instruments of release and discharge of the terms hereof; provided, however, that the execution and delivery of such instruments shall not be necessary or a prerequisite to the termination of this Regulatory Agreement in accordance with its terms. Section 14. Covenants to Run With the Land. Notwithstanding Section 1461 of the California Civil Code, the Owner hereby subjects the Project to the covenants, reservations and restrictions set forth in this Regulatory Agreement. The Govern mental Lender and the Owner hereby declare their express intent that the covenants, reservations and restrictions set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon the Owner’s successors in title to the Project; provided, however, that on the termination of this Regulatory Agreement said covenants, reservations and restrictions shall expire. Each and every contract, deed or other instrument hereafter executed covering or conveying the Project or any port ion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations and restrictions, regardless of whether such covenants, reservations and restrictions are set forth in such contract, deed or other instruments. Section 15. Burden and Benefit. The Governmental Lender and the Owner hereby declare their understanding and intent that the burdens of the covenants set forth herein touch and concern the land in that the Owner’s legal interest in the Project is render ed less valuable thereby. The Governmental Lender and the Owner hereby further declare their understanding and intent that the benefits of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the Project by Low Income Tenants and Very Low Income Tenants, the intended beneficiaries of such covenants, reservations and restrictions, and by furthering the public purposes for which the Note was executed and delivered. Page 531 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 16 4907-9342-2735v5/024036-0105 Section 16. Uniformity; Common Plan. The covenants, reservations and restrictions hereof shall apply uniformly to the entire Project in order to establish and carry out a common plan for the use of the site on which the Project is located. Section 17. Default; Enforcement. If the Owner defaults in the performance or observance of any covenant, agreement or obligation of the Owner set forth in this Regulatory Agreement, and if such default remains uncured for a period of 60 days after written notice thereof shall have been given by the Governmental Lender or the Noteowner Representative to the Owner, or for a period of 60 days from the date the Owner should, with reasonable diligence, have discovered such default, then the Governmental Lender shall declare an “Event of Default” to have occurred hereunder; provided, however, that if the default is of such a nature that it cannot be corrected within 60 days, such default shall not constitute an Event of Default hereunder so long as (i) the Owner institutes corrective action within said 60 days and diligently pursues such action until the default is corrected, and (ii) in the opinion of Tax Counsel, the failure to cure said default within 60 days will not adversely affect the Tax-Exempt status of interest on the Note. The Governmental Lender shall have the right to enforce the obligations of the Owner under this Regulatory Agreement within shorter periods of time than are otherwise provided herein if necessary to insure compliance with the Housing Law or the Code. Any cure of any default made or tendered by the Investor Limited Partner shall be deemed to be a cure by Owner and shall be accepted or rejected on the same basis as if made or tendered by Owner. Following the declaration of an Event of Default hereunder, the Governmental Lender, subject to the terms of the Funding Loan Agreement, may take any one or more of the following steps, in addition to all other remedies provided by law or equity: (i) by mandamus or other suit, action or proceeding at law or in equity, including injunctive relief, require the Owner to perform its obligation s and covenants hereunder or enjoin any acts or things that may be unlawful or in violation of the rights of the Governmental Lender hereunder; (ii) have access to and inspect, examine and make copies of all of the books and records of the Owner pertaining to the Project; and (iii) with the consent of the Funding Lender, take such other action at law or in equity as may appear necessary or desirable to enforce the obligations, covenants and agreements of the Owner hereunder. The Owner hereby agrees that specific enforcement of the Owner’s agreements contained herein is the only means by which the Governmental Lender may fully obtain the benefits of this Regulatory Agreement made by the Owner herein, and the Owner therefore agrees to the imposition of the remedy of specific performance against it in the case of any Event of Default by the Owner hereunder. The Governmental Lender hereby agrees that cure of any Event of Default made or tendered by any partner of the Owner shall be deemed to be a cure by the Owner and shal l be accepted or rejected on the same basis as if made or tendered by the Owner. Page 532 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 17 4907-9342-2735v5/024036-0105 All reasonable fees, costs and expenses (including reasonable attorney’s fees and expenses) the Governmental Lender incurred in taking any action pursuant to this Section shal l be the sole responsibility of the Owner. The Governmental Lender shall give Funding Lender a copy of any written notice given to Owner under this Regulatory Agreement at the address set forth in Section 12.1 of the Funding Loan Agreement. Funding Lender shall have the right to cure any Owner default to the same extent, and with the same cure periods, afforded to the Owner. Section 18. Recording and Filing. The Owner shall cause this Regulatory Agreement and all amendments and supplements hereto and th ereto, to be recorded and filed in the real property records of the County, and in such other places as the Governmental Lender may reasonably request. The Owner shall pay all fees and charges incurred in connection with any such recording. (b) The Owner and the Governmental Lender will file of record such other documents and take such other steps as are reasonably necessary, in the opinion of Tax Counsel, in order to insure that the requirements and restrictions of this Regulatory Agreement will be binding up on all owners of the Project. (c) The Owner hereby covenants to include or reference the requirements and restrictions contained in this Regulatory Agreement in any documents transferring any interest in the Project to another person to the end that such transferee has notice of, and is bound by, such restrictions, and, except in the case of a foreclosure or comparable involuntary conversion of the Deed of Trust, whereby the Funding Lender becomes the owner of the Project, to obtain the agreement from any transferee to abide by all requirements and restrictions of this Regulatory Agreement. Section 19. Payment of Fees. Notwithstanding any prepayment of the Loan and discharge of the Funding Loan Agreement, the Owner shall continue to pay the fees of the Governmental Lender as provided in this Section 19, unless such prepayment is made in connection with a refunding of the Note. The Owner agrees to pay to the Governmental Lender (i) an initial issuance fee of $____________, which shall be paid on or before the Closing Date, (ii) the Governmental Lender’s annual administration fee (the “Annual Administration Fee”), which shall be an amount equal to $_______________, payable semi-annually in equal installments on each __________ and ______________ with the next installment being ___________, 2026, and continuing throughout the Compliance Period, and (iii) within 30 days after receipt of request for payment thereof, all reasonable out-of-pocket expenses of the Governmental Lender (not including salaries and wages of Governmental Lender employees) related to the Note, the Project and the financing thereof, including, without limitation, legal fees and expenses incurred in connection with the interpretation, performance, enforcement or amendment of any documents relating to the Proje ct or the Note, including without limitation any legal fees and expenses incurred in connection with any audit of the Note by the Internal Revenue Service. If the Owner fails to make payment of the Annual Administration Fee for a period of two consecutive years or more, the Governmental Lender may, in its sole discretion, declare the total amount of the Annual Administration Fee through the end of the Compliance Period immediately due and payable, such amount to be discounted at a rate equal to the then cur rent market rate for U.S. Treasury obligations of a maturity equal to the remaining term of the Compliance Period. Page 533 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 18 4907-9342-2735v5/024036-0105 Section 20. Governing Law; Venue. This Regulatory Agreement shall be construed in accordance with and governed by the laws of the State of California ap plicable to contracts made and performed in the State of California. This Regulatory Agreement shall be enforceable in the State of California, and any action arising hereunder shall (unless waived by the Governmental Lender in writing) be filed and maintained in the Superior Court of California, County of San Diego. Section 21. Amendments; Waivers. Except as provided in Sections 8(a) and 28(e) hereof, this Regulatory Agreement may be amended only by a written instrument executed by the parties hereto or their successors in title, and duly recorded in the real property records of the County of San Diego, California, and only upon (i) receipt by the Governmental Lender of an opinion from Tax Counsel that such amendment will not adversely affect the Tax-Exempt status of interest on the Note and is not contrary to the provisions of the Housing Law and (ii) the written consent of the Noteowner Representative, who shall receive a copy of any such amendment. (b) Anything to the contrary contained herein notwithstand ing, the Governmental Lender and the Owner hereby agree to amend this Regulatory Agreement to the extent required, in the opinion of Tax Counsel, in order that interest on the Note remains Tax-Exempt. The parties requesting such amendment shall notify the other parties to this Regulatory Agreement of the proposed amendment, with a copy of such proposed amendment to Tax Counsel and a request that Tax Counsel render to the Governmental Lender an opinion as to the effect of such proposed amendment upon the Tax-Exempt status of interest on the Note. This provision shall not be subject to any provision of any other agreement requiring any party hereto to obtain the consent of any other person in order to amend this Regulatory Agreement. (c) Any waiver of, or consent to, any condition under this Regulatory Agreement must be expressly made in writing. Section 22. Notices. Any notice required to be given hereunder shall be made in writing and shall be given by personal delivery, overnight delivery, certified or registered m ail, postage prepaid, return receipt requested, or by telecopy, in each case at the respective addresses specified in the Funding Loan Agreement, or at such other addresses as may be specified in writing by the parties hereto. Unless otherwise specified by the Administrator, the address of the Administrator is: Chula Vista Housing Authority 276 Fourth Avenue Chula Vista, California 91910 Attention: Executive Director Unless otherwise specified by CDLAC, the address of CDLAC is: California Debt Limit Allocation Committee 915 Capitol Mall, Room 311 Sacramento, California 95814 Attention: Executive Director The Governmental Lender, the Administrator, CDLAC and the Owner may, by notice given hereunder, designate any further or different addresses to which subsequent notices, certificates or other communications shall be sent. Notice shall be deemed given on the date evidenced by the postal or courier receipt or other written evidence of delivery or electronic transmission; provided Page 534 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 19 4907-9342-2735v5/024036-0105 that any telecopy or other electronic transmission received by any party after 4:00 p.m., local time of the receiving party, as evidenced by the time shown on such transmission, shall be deemed to have been received the following Business Day. A copy of each notice of default provid ed to the Owner hereunder shall also be provided to the Investor Limited Partner and the Noteowner Representative at the addresses set forth in the Funding Loan Agreement. A copy of each notice sent by or to the Owner shall also be sent to the Manager at the address of the Manager provided by the Owner to the Administrator; but such copies shall not constitute notice to the Owner, nor shall any failure to send such copies constitute a breach of this Regulatory Agreement or a failure of or defect in notice to the Owner. The Owner shall notify the Governmental Lender and the Administrator in writing of any change to the name of the Project or any change of name or address for the Owner or the Manager. The Owner shall further notify CDLAC in writing of any event provided in Section 28(d) hereof. Section 23. Severability. If any provision of this Regulatory Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions hereof shall not in any way be affected or impaired thereby. Section 24. Multiple Counterparts. This Regulatory Agreement may be simultaneously executed in multiple counterparts, all of which shall constitute one and the same instrument, and each of which shall be deemed to be an original. Section 25. Limitation on Liability. Notwithstanding the foregoing or any other provision or obligation to the contrary contained in this Regulatory Agreement, (i) the liability of the Owner under this Regulatory Agreement to any person or entity, including, but not limited to, the Noteowner Representative or the Governmental Lender and their successors and assigns, is limited to the Owner’s interest in the Project, the Pledged Revenues and the amounts held in the funds and accounts created under the Funding Loan Agreement, or any rights of the Owner under any guarantees relating to the Project, and such persons and entities shall look exclusively thereto, or to such other security as may from time to time be given for the payment of obligations arising out of this Regulatory Agreement or any other agreement securing the obligations of the Owner under this Regulatory Agreement; and (ii) from and after the date of this Regulatory Agreement, no deficiency or other personal judgment, nor any order or decree of specific performance (other than pertaining to this Regulatory Agreement, any agreement pertaining to any Project or any other agreement securing the Owner’s obligations under this Regulatory Agreement), shall be rendered against the Owner, the assets of the Owner (other than the Owner’s interest in the Project, this Regulatory Agreement, amounts held in the funds and accounts created under the Funding Loan Agreement, any rights of the Owner under the Funding Loan Agreement, or any other documents relating to the Note or any rights of the Owner under any guarantees relating to the Project), its partners, members, successors, transferees or assigns and each of their respective officers, directors, employees, partners, agents, heirs and personal representatives, as the c ase may be, in any action or proceeding arising out of this Regulatory Agreement and the Funding Loan Agreement or any agreement securing the obligations of the Owner under this Regulatory Agreement, or any judgment, order or decree rendered pursuant to any such action or proceeding, except to the extent provided in the Loan Agreement. Section 26. Third-Party Beneficiary. The City and CDLAC are intended to be and shall each be a third-party beneficiary of this Regulatory Agreement. The City shall have the right (but not the obligation) to enforce, separately or jointly with the Governmental Lender or to cause the Page 535 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 20 4907-9342-2735v5/024036-0105 Governmental Lender to enforce, the terms of this Regulatory Agreement and to pursue an action for specific performance or other available remedy at law or i n equity in accordance with Section 17 hereof. CDLAC shall have the right (but not the obligation) to enforce the CDLAC Conditions and to pursue an action for specific performance or other available remedy at law or in equity in accordance with Section 17 hereof, provided that any such action or remedy shall not materially adversely affect the interests and rights of the Noteowner. Section 27. Property Management. The Owner agrees that at all times the Project shall be managed by a property manager (i) approved by the Governmental Lender in its reasonable discretion and (ii) who has at least three years’ experience in the ownership, operation and management of similar size rental housing projects, and at least one year’s experience in the ownership, operation and management of rental housing projects containing below-market-rate units, without any record of material violations of discrimination restrictions or other state or federal laws or regulations or local governmental requirements applicable to such projects (the “Manager”). The Owner shall submit to the Governmental Lender from time to time such information about the background, experience and financial condition of any existing or proposed Manager as the Governmental Lender may reasonably require to determine w hether such Manager meets the requirements for a Manager set forth herein. The Governmental Lender reserves the right to conduct periodic reviews of the management practices and of the Manager to determine if the Project is being operated and managed in accordance with the requirements and standards of this Agreement. The Owner agrees to cooperate with the Governmental Lender in such reviews. Replacement of Manager. If the Governmental Lender determines in its reasonable judgment that the Project is not being operated and managed in accordance with one or more of the material requirements or standards of this Agreement, the Governmental Lender may deliver notice to the Owner and the Funding Lender requesting replacement of the Manager, which notice shall state clearly the reasons for such request. The Owner agrees that, upon receipt of such notice, it shall within 60 days submit to the Governmental Lender, with copies to the Funding Lender, a proposal to engage a new Manager meeting the requirements of th is Section 27. Each of the Governmental Lender and the Funding Lender shall each consent within 30 days to such proposal. Upon receipt of such consent, the Owner shall within 60 days terminate the existing Manager’s engagement and engage the new Manager. If such proposal is denied by either the Governmental Lender or the Funding Lender, the Owner agrees that upon receipt of notice of such denial, it shall within 60 days submit to the Governmental Lender, with copies to the Funding Lender, a proposal to e ngage another new Manager meeting the requirements of this Section 27, subject to the Governmental Lender’s and Funding Lender’s consent. Notwithstanding any other provision of this Section 27 to the contrary, Funding Lender may at any time by written instruction to the Governmental Lender and the Owner deny the Governmental Lender’s request for a replacement Manager and direct that the existing Manager be retained and shall have all approval, consent and oversight rights in connection with the hiring or firing of property managers. Section 28. Requirements of CDLAC. In addition to other requirements set forth herein and to the extent not prohibited by the requirements set forth in Sections 4 through 6 hereof, the Owner hereby agrees to comply with each of the requirements of CDLAC set forth in this Section 28, as follows: Page 536 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 21 4907-9342-2735v5/024036-0105 (a) The Owner shall comply with the CDLAC Resolution attached hereto as Exhibit E and the CDLAC Conditions set forth in Exhibit A thereto (collectively, the “CDLAC Conditions”), which conditions are incorporated herein by reference and made a part hereof. The Owner will prepare and submit to the Governmental Lender, not later than February 1 of each year, until the Project is completed, and on February 1 every three years thereafter until the end of th e Compliance Period, a Certificate of Compliance II for Qualified Residential Rental Projects, in substantially the form required or otherwise provided by CDLAC from time to time, executed by an authorized representative of the Owner. Such Certificate of Compliance II for Qualified Residential Rental Projects shall be shall be prepared pursuant to the terms of the CDLAC Conditions. Additionally, the Owner will prepare and submit to the Governmental Lender, a Certificate of Completion, in substantially the form required or otherwise provided by CDLAC from time to time, executed by an authorized representative of the Owner certifying among other things to the substantial completion of the Project. Compliance with the terms of the CDLAC Conditions not contai ned within this Regulatory Agreement, but referred to in the CDLAC Conditions are the responsibility of the Owner to report to the Governmental Lender. (b) The Owner acknowledges that the Governmental Lender and the Administrator shall monitor the Owner’s compliance with the terms of the CDLAC Conditions. The Owner acknowledges that the Governmental Lender will prepare and submit to CDLAC, not later than March 1 of each year, until the Project is completed, and on March 1 every three years thereafter until the end of the Compliance Period, a Self-Certification Certificate in the form provided by CDLAC. The Owner will cooperate fully with the Governmental Lender in connection with such monitoring and reporting requirements. (c) Except as otherwise provided in Section 13 of this Regulatory Agreement, this Regulatory Agreement shall terminate on the date 55 years after the date on which at least fifty percent (50%) of the units in the Project are first occupied or otherwise after the commencement of the Qualified Project Period. (d) The Owner shall notify CDLAC in writing of: (i) any change in ownership of the Project, (ii) any change in the Governmental Lender, (iii) any change in the name of the Project or the Manager; (iv) any material default under the Funding Loan Agreement, the Loan Agreement or this Regulatory Agreement, including, but not limited to, such defaults associated with the Tax - Exempt status of the Note, and the income and rental requirements as provided in Sections 4 and 6 hereof and the CDLAC Conditions; or (v) termination of this Regulatory Agreement. (e) CDLAC shall have the right, but not the obligation, to deliver revised CDLAC Conditions to the Owner after the Closing Date with respect to the Note, at any time; that are not more restrictive than the original CDLAC Conditions; provided however, that, wit h the prior written consent of the Noteowner Representative: (i) any changes in the terms and conditions of the CDLAC Conditions prior to the recordation against the Project in the real property records of the County of a regulatory agreement between Owner and TCAC (“TCAC Regulatory Agreement”) shall be limited to such changes as are necessary to correct any factual errors or to otherwise conform the CDLAC Conditions to any change in facts or circumstances applicable to the Owner or the Project; and (ii) after recordation of the TCAC Regulatory Agreement, any changes in the terms and conditions of the CDLAC Conditions shall be limited to such changes as are necessary to conform Items [1, 6, 7, 10, 11, 12, 14, 15, 16, 18, 19, 20, 21, 22, 23, 24, 25 and/or 26] of Exhibit A to the CDLAC Conditions to any change in terms and conditions requested by Owner and approved by CDLAC. The Owner shall record or cause to be recorded in the real property records of the County an Page 537 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 22 4907-9342-2735v5/024036-0105 amendment to this Regulatory Agreement containing such revised CDLAC Conditions, executed by the parties hereto or their successor in title and pay any expenses in connection therewith. The Owner shall provide CDLAC with a copy of that recorded amendment reflecting the revised CDLAC Conditions. Any of the foregoing requirements of the CDLAC contained in this Section 28 may be expressly waived by CDLAC, in its sole discretion, in writing, but (i) no waiver by CDLAC of any requirement of this Section 28 shall, or shall be deemed to, extend to or affe ct any other provision of this Regulatory Agreement except to the extent the Governmental Lender has received an opinion of Tax Counsel that any such provision is not required by the Housing Law and may be waived without adversely affecting the exclusion from gross income of interest on the Note for federal income tax purposes; and (ii) any requirement of this Section 28 shall be void and of no force and effect if the Governmental Lender and the Owner receive a written opinion of Tax Counsel to the effect t hat compliance with any such requirement would cause interest on the Note to cease to be Tax-Exempt or to the effect that compliance with such requirement would be in conflict with the Housing Law or any other state or federal law. Page 538 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda [Execution Page to Amended and Restated Regulatory Agreement and Declaration of Restrictive Covenants Dated as of __________________ 1, 2026] S-1 4907-9342-2735v5/024036-0105 IN WITNESS WHEREOF, the Governmental Lender and the Owner have executed this Regulatory Agreement by duly authorized representatives, all as of the date first above written. CHULA VISTA HOUSING AUTHORITY By: Executive Director Page 539 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda [Execution Page to Amended and Restated Regulatory Agreement and Declaration of Restrictive Covenants Dated as of __________________ 1, 2026] S-2 4907-9342-2735v5/024036-0105 MU2 AFFORDABLE LP, a California limited partnership By: MU2 Affordable LLC, a California limited liability company Its Administrative General Partner By: Name: Its: By: SBCS Corporation, a California nonprofit public benefit corporation Its Managing General Partner By: Kathryn Lembo President and CEO Page 540 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 4907-9342-2735v5/024036-0105 Page 541 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 4907-9342-2735v5/024036-0105 Page 542 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 4907-9342-2735v5/024036-0105 EXHIBIT A DESCRIPTION OF REAL PROPERTY Real property in the City of Chula Vista, County of San Diego, State of California, described as follows: Page 543 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda B-1 4907-9342-2735v5/024036-0105 EXHIBIT B FORM OF INCOME CERTIFICATION Page 544 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda C-1 4907-9342-2735v5/024036-0105 EXHIBIT C FORM OF CERTIFICATE OF CONTINUING PROGRAM COMPLIANCE The undersigned, ____________________, being duly authorized to execute this certificate on behalf of MU2 AFFORDABLE LP, a California limited partnership (the “Owner”), hereby represents and warrants that: 1. The undersigned has read and is thoroughly familiar with the provisions of the following documents associated with the Borrower’s participation in the Chula Vista Housing Authority’s (the “Governmental Lender”) Multifamily Housing Revenue Note (Sol Vista Apartments), 2026 Series A and Multifamily Housing Revenue Note (Sol Vista Apartments), 2026 Series A-1 (Tax Exempt), such documents including: (a) the Regulatory Agreement and Declaration of Restrictive Covenants (the “Regulatory Agreement”) dated as of __________________ 1, 2026 between the Owner and the Governmental Lender; (b) the Note executed and delivered from the Owner to the Governmental Lender representing the Owner’s obligation to repay the Loan. 2. As of the date of this certificate, the following percentages of residential units in the Project (i) are occupied by Very Low Income Tenants and Low Income Tenants (as such terms are defined in the Regulatory Agreement) or (ii) are currently vacant and being held available for such occupancy and have been so held continuously since the date a Very Low Income Tenant and Low Income Tenant vacated such unit; as indicated: Studio 1 Bedroom 2 Bedrooms 3 Bedrooms Total Occupied by Very Low Income Tenants: ___ % Unit Nos.: _____ ____ ____ ____ ____ Held vacant for occupancy continuously since last occupied by a Very Low Income Tenant: ___ % Unit Nos.: _____ ____ ____ ____ ____ Studio 1 Bedroom 2 Bedrooms 3 Bedrooms Total Occupied by Low Income Tenants: ___ % Unit Nos.: _____ ____ ____ ____ ____ Held vacant for occupancy continuously since last occupied by a Low Income Tenant: ___ % Unit Nos.: _____ ____ ____ ____ ____ Page 545 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda C-2 4907-9342-2735v5/024036-0105 3. The Owner hereby certifies that the Owner is not in default under any of the terms of the above documents and no event has occurred which, with the passage of time, would constitute an event of default thereunder, with the exception of the following [state actions being taken to remedy default]. MU2 AFFORDABLE LP, a California limited partnership By: Its: Page 546 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda D-1 4907-9342-2735v5/024036-0105 EXHIBIT D CDLAC RESOLUTION THE CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE RESOLUTION NO. 25-352 Page 547 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Form Rev 9/30/2025 HA RESOLUTION NO. __________ RESOLUTION OF THE CHULA VISTA HOUSING AUTHORITY (1) AUTHORIZING THE EXECUTION AND DELIVERY OF ITS TAX-EXEMPT MULTIFAMILY HOUSING REVENUE NOTE IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $14,000,000 FOR THE PURPOSE OF FINANCING THE ACQUISITION AND CONSTRUCTION OF THE SOL VISTA APARTMENTS MULTIFAMILY RENTAL HOUSING PROJECT; (2) APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF ANY AND ALL DOCUMENTS NECESSARY TO EXECUTE AND DELIVER THE NOTE, COMPLETE THE TRANSACTION, AND IMPLEMENT THIS RESOLUTION; AND (3) RATIFYING AND APPROVING ANY ACTION HERETOFORE TAKEN IN CONNECTION WITH THE NOTE WHEREAS, pursuant to the Housing Authorities Law, Chapter 1 of Part 2 of Division 24 of the California Health and Safety Code (“Housing Authorities Law”), the Chula Vista Housing Authority (the “Housing Authority”), a public body corporate and politic organized, existing and operating pursuant to the Housing Authorities Law, is empowered to execute and deliver obligations for the purpose of financing the acquisition, construction, rehabilitation, refinancing, development, and operation of multifamily rental housing; and WHEREAS, MU2 Affordable LP, a California limited partnership (the “Borrower”), intends to acquire and construct a ninety-six (96) unit multifamily rental housing project located at the Southwest corner of Santa Victoria Road and Santa Diana Road in Chula Vista, California to be known as the “Sol Vista Apartments” (the “Project”); and WHEREAS, the Borrower has requested Housing Authority to execute and deliver a tax- exempt multifamily housing revenue note in one or more series (the “Note”), and to loan the proceeds of the Note to the Borrower to finance the acquisition, construction, and equipping of the Project; and WHEREAS, the aggregate principal amount of the Note shall not exceed fourteen million dollars ($14,000,000); and WHEREAS, Housing Authority, by action of its Board of Commissioners (the “Board”), desires to assist the Borrower and to increase the supply of affordable housing by making the units in the Project available for low income persons or families, and in order to accomplish such purposes it is desirable for Housing Authority to provide for the execution and delivery of the Note and financing of the Project; and WHEREAS, the Note will be executed and delivered pursuant to the Funding Loan Agreement (the “Funding Loan Agreement”), by and among the Housing Authority, Citibank, Page 548 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Resolution No. Page 2 N.A. (“Citibank”), and Wilmington Trust, N.A., as fiscal agent (the “Fiscal Agent”), and the proceeds of the Note will be loaned to the Borrower pursuant to the Borrower Loan Agreement, between the Authority and the Borrower (the “Borrower Loan Agreement”); and WHEREAS, Citibank will act as the Funding Lender under the Funding Loan Agreement; and WHEREAS, the Housing Authority will loan the proceeds of the Note to the Borrower and the Borrower will use the proceeds of the Note exclusively to finance the costs of acquisition, construction, and equipping of the Project and the costs of executing and delivering the Note; and WHEREAS, California Government Code Section 8869.85 requires a local agency to file an application with the California Debt Limit Allocation Committee (“Committee”) prior to the issuance of tax-exempt multifamily housing revenue bonds, and the Authority has filed such an application; and WHEREAS, the Committee has allocated to the Project fourteen million dollars ($14,000,000) of the State of California 2025 State ceiling for private activity bonds under Section 146 of the Internal Revenue Code of 1986; and WHEREAS, it is the intent of the Housing Authority to enter into bond documentation to govern the Note being executed and delivered (collectively, the “Transaction Documents”), including: (1) the Funding Loan Agreement; (2) the Borrower Loan Agreement; and (3) a regulatory agreement and declaration of restrictive covenants, by and between the Authority and the Borrower (the “Regulatory Agreement”); and WHEREAS, it appears that each of the documents and instruments described herein now before this meeting is in a substantially appropriate form and is an appropriate instrument to be executed and delivered for the purposes intended. NOW, THEREFORE, BE IT RESOLVED by the Chula Vista Housing Authority, as follows: 1. Authorization of Note. In accordance with the Housing Authorities Law and pursuant to the Funding Loan Agreement, Authority authorizes the execution and delivery of notes in one or more series of tax-exempt notes designated as “Chula Vista Housing Authority Multifamily Housing Revenue Note (Sol Vista Apartments) 2026 Series A” (the “Note”), with an interest rate or rates, a maturity date or dates and other terms as provided in the Funding Loan Agreement as finally executed for the Note. The Note shall be in substantially the form set forth in and otherwise in accordance with the Funding Loan Agreement, and shall be executed on behalf of Housing Authority by the manual or facsimile signature of the Director of the Authority (the “Director”), and the Note shall be attested by the manual or facsimile signature of the Secretary of the Board of Commissioners of the Authority (“Secretary”). 2. Approval of Transaction Documents. The form of each of the Transaction Documents, in substantially the form on file with the Secretary, is hereby approved. The Director is authorized to execute, and the Secretary is authorized to attest, each of the Transaction Page 549 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Resolution No. Page 3 Documents in substantially said form, with such additions thereto and changes therein as the Director may approve or recommend in accordance with Section 5 hereof. The date, maturity date or dates, interest rate or rates, interest payment dates, denominations, form, registration privileges, manner of execution, place of payment, terms of redemption, and other terms of the Note shall be as provided in the Funding Loan Agreement as finally executed. 3. Approval of Transaction Documents. The Director is authorized to execute and deliver, and the Secretary is authorized to attest, any and all certificates, agreements and other documents ancillary to the Transaction Documents in the forms approved by the City Attorney, as general counsel to Authority (“General Counsel”), and by special counsel and bond counsel to the Authority and City on these matters, Stradling Yocca Carlson & Rauth (together, “Special Counsel”). 4. Approval of Changes to Documents. The Director executing a document approved herein, in consultation with General Counsel and Special Counsel, is authorized to approve and make such modifications, changes or additions to Transaction Documents or other documents as may be necessary or advisable, and the approval of any modification, change or addition to any of the aforementioned agreements shall be evidenced conclusively by the execution and delivery thereof by the Director and approval as to form by General Counsel and Special Counsel. Further, the Director, acting alone, is authorized to execute any assignment agreement related to any mortgage note, mortgage, deed of trust or other document related to the loans made to the Borrower from the proceeds of the Note. 5. Actions Ratified and Authorized. All actions heretofore taken by the officers, employees and agents of Housing Authority with respect to the execution and delivery of the Note, confirmed and ratified, and the officers, employees and agents of Housing Authority are authorized and directed, for and in the name and on behalf of Housing Authority, to do any and all things and take any and all actions and execute and deliver any and all certificates, agreements and other documents, including, but not limited to, those documents described in the Transaction Documents and the other documents herein approved, which they, or any of them, may deem necessary or advisable in order to consummate the lawful execution and delivery of the Note and to effectuate the purposes thereof and of the documents herein approved in accordance with this resolution and resolutions heretofore adopted by the Housing Authority. In the event that the Secretary is unavailable to sign any document related to the Note, any Deputy Secretary of the Authority may sign on behalf of the Secretary. 6. Further Consents, Approvals and Other Actions. All consents, approvals, notices, orders, requests and other actions permitted or required by any of the documents authorized by this Resolution or otherwise appropriate in the administration of the Notes and Subordinate Bonds and the lending program financed thereby, including without limitation any of the foregoing that may be necessary or desirable in connection with any amendment of such documents, any transfer of the Project, any substitution of security for the Note, or any prepayment of the Note may be taken or given by the Director, and the Director is hereby authorized and directed to give any such Page 550 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Resolution No. Page 4 consent, approval, notice, order or request and to take any such action which such officer may deem necessary or desirable to further the purposes of this Resolution. 7. Conflicting Resolutions Repealed. As to the Note, all prior resolutions or parts thereof, if any, in conflict herewith are, to the extent of such conflict, repealed. 8. Severability. If any section, paragraph or provision of this Resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any remaining sections, paragraphs or provisions of this Resolution. 9. Effectiveness of Resolution and Date Thereof. This Resolution shall take effect upon its adoption. 10. Certification. The Secretary shall certify to the passage and adoption of this Resolution. Presented by Approved as to form by Stacey Kurz Marco A. Verdugo Director of Housing and Homeless Services Legal Counsel Page 551 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Empower individuals & families ●Build community resilience ●Promote housing opportunities ●Enhance quality of life HOUSING & HOMELESS SERVICES Item 8.2 Sol Vista Bond Issuance (Housing Authority) Page 552 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda HOUSING & HOMELESS SERVICES Project Overview •96 units •Part of larger 599-unit complex •Tenants will have access to shared amenities (pool, lounges, dog park, etc.) •$14 million bond issuance •~$44 million project cost Project Location Page 553 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda HOUSING & HOMELESS SERVICES Project Team Role Name Project Sponsor Baldwin & Sons, Inc. General Contractor An affiliate of Baldwin & Sons, Inc. Architect AO Architects (www.aoarchitects.com) Affordable Housing Consultant Trestle Build (Rise Urban Consulting) Property Manager CONAM Funding Lender Citibank Role Name Governmental Lender Chula Vista Housing Authority Financial Counsel Peter Ross (Ross Financial) Bond Counsel Bradley Neal (Stradling Yocca Carlson & Rauth)Page 554 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda HOUSING & HOMELESS SERVICES Milestones & Timeline Milestone Responsible Party Target Date HHAC Consideration of Inducement HHAC July 16, 2025 Bond Inducement Housing Authority August 5, 2025 CDLAC Application Baldwin & Sons September 9, 2025 Award Notification CDLAC December 2025 Building Permit Issued City March 23, 2026 HHAC Recommendation of Bond Issuance HHAC March 25, 2026 TEFRA Hearing & Approval City April 21, 2026 Bond Final Approval Housing Authority April 21, 2026 Loan Closing & Construction Start Baldwin & Sons May 2026 Construction Completion Baldwin & Sons May 2028 Page 555 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 556 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 557 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 558 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda HOUSING & HOMELESS SERVICES Staff Recommendation Chula Vista Housing Authority adopt a resolution authorizing the issuance of up to $14 million in tax- exempt bond obligations for the 96-unit Sol Vista Apts affordable housing development Page 559 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda v . 0 0 5 P a g e | 1 April 21, 2026 ITEM TITLE Park Naming and Council Policy Waiver: Approving Naming of the Future Urban Park at Oxford Street and Fourth Avenue as “Roy Franzen Park” and Waiving City Council Policy No. 470-01 Report Number: 26-0120 Location: 391 Oxford Street Department: City Manager G.C. § 84308 Regulations Apply: No Environmental Notice: The proposed action is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended Action Adopt a resolution waiving the naming requirements set forth in City Council Policy No. 470-01 and approving the naming of the future urban park at Oxford Street and Fourth Avenue as “Roy Franzen Park.” SUMMARY The City of Chula Vista has initiated planning efforts for a new urban park to be located at the corner of Oxford St. and Fourth Ave (“Future Urban Park”), which is the site of the former Fire Station #5. This station served the community for over six decades. On April 14, 2026, the City Council made a referral, initiated by Deputy Mayor Cesar Fernandez, to name the future urban park in honor of Roy Franzen, a steadfast presence at the former fire station whose contributions helped shape the station’s identity, and by extension, the surrounding community. The City Council also directed a review and potential revision of Council Policy 470-01 (City Asset Naming and Renaming) (Attachment 2) to ensure its practicality and adaptability when considering community naming requests. Possible policy revisions will be presented at a later date. Page 560 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 2 ENVIRONMENTAL REVIEW The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA), and it has been determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Staff anticipates presentation of the proposed park master plan in the coming months to the Parks and Recreation Commission. DISCUSSION The City of Chula Vista has initiated planning efforts for a new park to be located on the vacant lot at the corner of Oxford and Fourth Avenue. This is a 0.46-acre lot which is classified as an urban park (0-4 acres) and will provide amenities to surrounding residential areas, schools and businesses. It is located within the same block as Lauderbach Park and Lauderbach Elementary School. The site has been vacant for several years following the demolition of former Fire Station #5, which served the community for over six decades. The community has expressed a desire for a park at this location, and a master planning effort is currently underway. City Council Referral On February 14, 2026, the City Council made a referral, initiated by Deputy Mayor Cesar Fernandez, to name the Future Urban Park in honor of Roy Franzen, a steadfast presence at the former fire station whose contributions helped shape the station’s identity, and by extension, the surrounding community. This follows a request received by the Deputy Mayor from the Chula Vista Firefighters Local 2180 (Attachment 1) to name the Future Urban Park in honor of Roy Franzen. At sixteen years of age, Roy moved with his family to a home across the street from former Fire Station #5. Drawn to the fire station, Roy introduced himself to the firefighters and began what would become a decade- long bond lasting more than 60 years. Roy has become an integral part of the firehouse family volunteering his time, offering friendship, and assisting wherever he can. The originally requested park name was “Honorary Firefighter Roy Franzen Community Park.” However, to maintain consistency with typical park naming conventions and for ease of public use, the proposed name is being modified to “Roy Franzen Park.” The City Council also directed a review and potential revision of City Council Policy 470-01 (City Asset Naming and Renaming) (Attachment 2) to ensure its practicality and adaptability when considering community naming requests. Possible revisions will be presented to the City Council for consideration at a later date. Page 561 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 3 DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT There is no current-year fiscal impact as a result of this action. ONGOING FISCAL IMPACT The ongoing costs associated with the park, and required signage, will be determined upon consideration of the proposed park master plan and budget development. ATTACHMENTS 1. Park Naming Request 2. Council Policy 470-01 Staff Contact: Tiffany Allen, City Manager Courtney Chase, Deputy City Manager Adrianna Relph, Special Projects & Legislative Manager Page 562 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda February 25, 2026 Cesar Fernandez Council Member, District 4 City of Chula Vista Subject: Recommendation of park name located at old Fire Station 5 Dear Council Member Fernandez, I am writing to respectfully recommend that the new park located at 391 Oxford Street b e named in honor of Roy Franzen, a beloved member of the community whose lifelong dedication and spirt embodied the very best of firefighter values and Chula Vista residents. It is with great pride we recommend “Honorary Firefighter Roy Franzen Community Park” Roy’s tenure stated at fire station 5 began in 1965, when at just sixteen years old he moved with his family to a home across the street. Drawn to the fire station, Roy introduced himself to the firefighters and began what would become a decades long bond lasting more than 60 years. Roy has become an integral part of the firehouse family volunteering his time, offering friendship, and assisting wherever he can. Roy embodies the traits of any great firefighter and does not allow limitations define who he is and what he can achieve. He has shown unparalleled love for the community, perseverance and compassion. He has demonstrated time and again that service is not measured by title or rank, but by heart. Roy Franzen’s story is one of friendship, dedication, and unconditional belonging. A park bearing his name would stand as a lasting reminder that every member of our community has the power to make a difference. Respectfully, Executive Board Chula Vista Firefighters IAFF Local 2180 Page 563 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda CITY COUNCIL POLICIES POLICY NAME: City Asset Naming and Renaming POLICY NUMBER: 470-01 Effective Date: 09/09/2025 Last Revised Date: N/A Status: Active Page: 1 of 6 I. BACKGROUND The naming of City assets—including parks, facilities, buildings, and other public spaces—carries significant meaning for the Chula Vista community. Names reflect the City’s history, culture, geography, and identity, while also shaping how residents and visitors connect with public spaces. The process of naming or renaming assets should therefore be guided by principles of consistency, fairness, transparency, and community engagement. II. PURPOSE To establish a policy creating a process and uniform guidelines for Naming or Renaming of City Assets including, but not limited to, City parks, recreational facilities, and other municipal buildings. This process is meant to ensure transparency, allow for public participation, and preserve the integrity and legacy of City Assets. This Policy outlines criteria, conditions, and procedures that govern Naming and Renaming of City Assets in order to: Maintain their integrity and future relevance; Encourage philanthropic giving while acknowledging public investments; Safeguard against unwanted commercialization of City Assets; and Ensure broad community acceptance. This Policy does not apply to: Street Names (See Chula Vista Municipal Code Chapter 12.44). III. DEFINITIONS City Assets: Tangible or intangible items of value that are owned or created by the City, including but not limited to City Facilities. City Facilities: Any part of real property or structure owned by the City or for which Naming rights are conferred by agreement, including, but not limited to parks, libraries, recreational facilities and buildings, parking facilities, interior or ancillary features that are a part of, or within, a larger facility and other City facilities. Page 564 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda CITY COUNCIL POLICIES POLICY NAME: City Asset Naming and Renaming POLICY NUMBER: 470-01 Effective Date: 09/09/2025 Last Revised Date: N/A Status: Active Page: 2 of 6 Commission: Any board or commission as recognized by the City of Chula Vista City Council and/or City Charter. Department Director: Appointed director of the department that oversees the City Asset eligible for Naming, Renaming, or monument installation. The director may assign this responsibility to other department staff within their delegation of authority. Donation or gift: A monetary (cash) contribution, endowments, personal property, real property, financial securities, equipment, in-kind goods or services, or any other City Asset that the City has accepted and for which the Donor has not received any goods or services in return. For purposes of this Council Policy, the terms “donation” and “gift” shall be synonymous. Donor: A person or other legal entity that proposes or provides a Donation to the City. Funding: Financial or in-kind resources to provide funding that might result in Naming or Renaming. Funding Source: The source of Funding which can include individuals, nonprofit organizations, and for- profit entities. Naming: The selection and approval by the City for the initial Naming of a City Asset other than those excluded from this policy. Renaming: The selection and approval by the City of a new name for an existing City Asset other than those excluded from this policy. IV. GUIDELINES The Naming or Renaming of City Assets are pursuant to the following guidelines in order of preference: 1. Geographic Location. Whenever possible, all City Assets will be considered for their geographic location. Creating names based on the asset’s geographic location should be considered first. The geographic location may be based on the relationship of the asset to a specific place, neighborhood, major street, regional area of the City or the City’s name if the asset serves the entire community. 2. Other Considerations. Consideration of names may also include a prominent form of topography, prominent flora, names that strengthen neighborhood or city identity, and cultural or historical Page 565 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 3 CITY COUNCIL POLICIES POLICY NAME: City Asset Naming and Renaming POLICY NUMBER: 470-01 Effective Date: 09/09/2025 Last Revised Date: N/A Status: Active Page: 3 of 6 precedent. 3. Extraordinary Circumstances. Only under extraordinary circumstances and with broad public support will the City consider Naming or Renaming a City Asset after a person or group. Eligible names must meet all of the following criteria: a. The person, group, or organization made lasting and significant contributions to the protection of natural or cultural resources of the City of Chula Vista; b. The person, group, or organization had a significant positive impact on the lives of Chula Vista’s residents; c. The person, group, or organization offered significant volunteerism or service to the community; d. The Naming of the person, group, or organization does not result in the excessive commercialization of the City Asset; e. The relationship of the person or group to the City Asset must be demonstrated through research and documentation; f. Extraordinary circumstances shall be demonstrated by broad and documented public support and by clear evidence that the proposed name substantially advances the City’s interest in preserving history, culture, or civic identity. 4. Major Donations. Naming or Renaming may acknowledge a Funding Source when the donor has provided above and beyond legal requirements: a. A significant contribution toward the capital construction costs of the City Asset; b. A deed to the City of land for the majority of the City Asset by the Donor; and/or c. A twenty-year endowment or alternative perpetual funding source for the continued maintenance and operations of the City Asset. 5. Neutral and Unique Names. Proposed names should be neutral (avoiding political, religious, or commercial affiliations unless historically relevant) and must not duplicate or closely resemble the name of another park, facility, or landmark in Chula Vista in order to avoid potential confusion of the public and public safety. V. PROCEDURES Nomination Process 1. Submittals and Recommendations. Proposals may be submitted by City department directors or community members. Page 566 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda CITY COUNCIL POLICIES POLICY NAME: City Asset Naming and Renaming POLICY NUMBER: 470-01 Effective Date: 09/09/2025 Last Revised Date: N/A Status: Active Page: 4 of 6 Recommendations may be submitted by commissions or task forces. All proposals or recommendations shall be directed to the City Manager, or designee within the City Manager’s office, who shall refer them to the appropriate department(s) for review. 2. Interior or Ancillary Features. For interior or ancillary features within a larger City Facility (such as but not limited to meeting rooms, classrooms, gyms, fitness rooms, or sports courts), the City Manager, or designee within the City Manager’s office, may approve names administratively when they are based on geographic location, topography, flora, cultural/historical precedent, or other neutral and unique considerations consistent with this Policy. Any Naming or Renaming under Extraordinary Circumstances, including naming after individuals, groups, or organizations, shall require full review and approval by the City Council. 3. Proposal Requirements. Written proposals must include: The proposed name; The location of the City Asset; Requestor’s contact information; Reasons for the proposed name, including how it meets this Policy’s criteria; Evidence of broad community support (e.g., 100 resident signatures; endorsements from a recognized community organization; or comparable evidence of substantial interest); and For Renaming requests, justification for changing an established name. 4. Limitations. Proposals may only be submitted once per City Asset within any 12-month period. Duplicate or substantially similar requests will not be considered during a five-year period. Incomplete or unsupported proposals shall not advance for review. Review Process The City Manager or designee, at any time of the process, may: Reject Naming or Renaming proposals or remove existing Naming that is harmful, controversial, cost- prohibitive, or inconsistent with this Policy; Reserve the right to rename any City Asset of the associated resident, organization, or donor becomes disreputable or otherwise fails to support the guidelines set forth in this Policy. Page 567 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda CITY COUNCIL POLICIES POLICY NAME: City Asset Naming and Renaming POLICY NUMBER: 470-01 Effective Date: 09/09/2025 Last Revised Date: N/A Status: Active Page: 5 of 6 Upon receipt, the Department Director shall: 1. Review the California Historic Resources Inventory Database (CHRID) and City of Chula Vista Registry to determine if the City Asset is a Designated Historical Resources with an assigned historic name; 2. Authenticate supporting information; 3. Ensure compliance with this Policy; 4. Consider the impact of the Naming or Renaming on the community; 5. Provide the proposal to any other City staff, when appropriate, to review and provide input on the proposal for Naming or Renaming; and 6. Consider the cost of implementation and signage and ensure that adequate funding has been identified before implementation proceeds. The Department Director will submit the proposal to the City Attorney’s Office for legal review of the proposal, including but not limited to ownership rights, policy consistency, and compliance with applicable laws. The designated City Department shall prepare a recommendation for action by the City Council. The recommendation shall include no more than three (3) names for the asset that the Department deemed most appropriate under this Policy and the reason for the selections. If a Naming or Renaming request is for a library or park, the City Council shall agendize the request for public consideration to hear the necessity or desirability of naming the library or park, and the proposed name and any alternatives. The City Council will review the recommendations and take action. The City Council’s selection is final. Non-selected names can be resubmitted for consideration in subsequent years. Once a name has been approved, it shall not be reconsidered unless extraordinary circumstances exist e.g., public safety concerns, reputational harm to the City, or other substantial impacts to community trust). No proposal for Renaming a City Asset shall be accepted for ten (10) years after approval, except Page 568 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda CITY COUNCIL POLICIES POLICY NAME: City Asset Naming and Renaming POLICY NUMBER: 470-01 Effective Date: 09/09/2025 Last Revised Date: N/A Status: Active Page: 6 of 6 under such extraordinary circumstances. Signage The City retains editorial control over all related signage, subject to the Sign Ordinance. On-site Naming recognition shall: Not interfere with visitor use or operations; Be appropriately scaled and designed; Not dominate or detract from surroundings or interpretive messages; and Be subject to approval by the reviewing City Manager or their designee. HISTORY DATE ACTION RESOLUTION NO. 09/09/2025 Adoption 2025-155 Page 569 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Form Rev 9/30/2025 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE NAMING OF THE FUTURE URBAN PARK AT OXFORD STREET AND FOURTH AVENUE AS “ROY FRANZEN PARK” AND WAIVING CITY COUNCIL POLICY NO. 470-01. WHEREAS, the City of Chula Vista (“City”) has initiated planning efforts for a future urban park to be located at the corner of Oxford St. and Fourth Ave. which is the former site of Fire Station #5; and WHEREAS, former Fire Station #5 served the community for over six decades; and WHEREAS, on April 14, 2026, the City Council made a referral to name the future urban park in honor of Roy Franzen, a steadfast presence at the former fire station whose contributions helped shape the station’s identity, and by extension, the surrounding community; and WHEREAS, City desires to waive the naming requirements set forth in City Council Policy No. 470-01; and WHEREAS, City desires to name the future urban park “Roy Franzen Park” after the individual, Roy Franzen. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it waives the naming requirements set forth in City Council Policy No. 470 -01 and approves the naming of the future urban park at Oxford Street and Fourth Avenue “Roy Franzen Park” in recognition of his perseverance, compassion, and service to the community. Presented by Approved as to Form by Tiffany Allen Marco A. Verdugo City Manager City Attorney Page 570 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Item 8.3 - Additional Information Page 571 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 572 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 573 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda v . 0 0 5 P a g e | 1 April 21, 2026 ITEM TITLE Contract Award and CIP Appropriation: Approve a Consultant Services Agreement with Carrier Johnson + Culture for the City of Chula Vista Police Department Facilities Master Planning Effort and Amend the Fiscal Year 2025-26 CIP Budget Accordingly Report Number: 26-0098 Location: No specific geographic location Department: City Manager & Police G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended Action Adopt a resolution: 1) Approving a Consultant Services Agreement with Carrier Johnson + Culture for Police Department facilities master planning services for a not-to-exceed amount of $393,815 and 2) Amending the fiscal year 2025-26 Capital Improvement Program (CIP) budget by appropriating funds to the capital improvement project “Police Substation Feasibility Study” (SAF0171) from available fund balance of the Public Facilities Development Impact Fee Fund (4/5 Vote Required). SUMMARY Constructed in 2004, the City of Chula Vista Police Department (CVPD) Headquarters at 315 Fourth Avenue is approximately 150,000 square feet and includes core functions such as dispatch, investigations, administrative offices, evidence storage, a crime laboratory, and a holding facility. However, more than two decades later, the facility is increasingly insufficient to support the current and projected operational needs of the department due to significant growth in the city, expansion of policing services, and increases in staffing and technological infrastructure. On November 7, 2025, the City issued a Request for Proposal (RFP) seeking competitive proposals from qualified firms to provide master facilities planning services for the Chula Vista Police Department in order Page 574 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 2 to assess the space and program needs of the Department and inform the future capital investment. As a result of the RFP process, staff recommends approving a consultant services agreement with Carrier Johnson + Culture for a not-to-exceed amount of $393,815. ENVIRONMENTAL REVIEW The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA), and it has been determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. This determination is predicated on Section 15004 of the State CEQA Guidelines, which provides direction to lead agencies on the appropriate timing for environmental review. The action being taken at this time involve only consideration of approving a consultant services agreement to develop a Master Plan. This action does not constitute approval of a project. Future actions to consider and approve the Master Plan, and if applicable, any associated funding allocations related to development and/or construction activity, may require additional review under the provisions of CEQA by the lead agency. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION Civic Center Master Plan Update & Police Headquarters Master Plan (2001) In July of 2001, the City Council approved the Police Headquarters Master Plan for the construction of the new Police Headquarters (HQ) to be located at 315 Fourth Avenue. This was done as part of the Civic Center Master Plan Update, which remodeled and expanded the existing Civic Center complex. Consultants worked alongside City staff to develop a facility master plan including a needs analysis, space programming and conceptual design. At the time, the Police Department (PD) facility was significantly undersized and in order to support level and quality of service, it was determined necessary to relocate and construct a new HQ. The new PD HQ would consist of a facility of approximately 135,000 square feet distributed across two to three stories above grade and a basement. The maximum height of the building would be 50 feet. There would be approximately 430 parking spaces provided in a combination of surface area and parking structure. The facility would accommodate a maximum of approximately 536 employees. It was anticipated that patrols from the facility would operate with two to four shifts per day, 24 hours a day. Vehicular traffic would consist of police personnel, civilian personnel and visitors. The activities at this site would not include repair of police vehicles and no fuel would be stored on site. The facility was planned for the Chula Vista population at buildout, which was estimated to be 277,000 by the year 2030. Page 575 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 3 Current Status of Police Facility Constructed in 2004, the PD HQ serves as a modern public safety facility designed to serve the operational needs of the department at that time. The building is approximately 150,000 square feet and includes core functions such as dispatch, investigations, administrative offices, evidence storage, a crime laboratory, and a holding facility. However, more than two decades later, the facility is increasingly insufficient to support the current and projected operational needs of the department due to significant growth in the city, expansion of p olicing services, and increases in staffing and technological infrastructure. Since the design of PD HQ, the City of Chula Vista has experienced substantial population and development growth. The police department currently serves a population exceeding 280,000 residents, and long-term projections anticipate the city reaching approximately 350,000 residents at full build-out. Large-scale developments—including the Chula Vista Bayfront project, Millenia, Otay Ranch expansion, and a planned university site—are expected to significantly increase population density, tourism, traffic, and calls for service. These developments create greater demand for patrol services, investigative resources, and community policing programs. As service demands increase, the department must expand staffing, specialized units, and operational capabilities, placing pressure on a facility that was designed for a smaller city and a different policing environment. The current facility also presents strategic limitations for the department’s future growth. As the city continues to expand geographically and demographically, the department must maintain adequate staffing levels and operational readiness. However, physical space constraints at the existing HQ limit the department’s ability to expand staffing, modernize infrastructure, and maintain efficient operations. City Council Referral (March 2025) The City Council made a referral, initiated by Councilmember Inzunza, directing staff to initiate and facilitate a feasibility study on the potential development of a police substation in eastern Chula Vista. It was requested that study parameters include land planning, service level needs, program definitions , cost estimates, and financing options. This item is responsive to that referral. The scope of the original referral was expanded in the RFP development process to comprehensively assess the space needs of CVPD. Bidding Process On November 7, 2025, the City issued RFP P16-2026 seeking competitive proposals from qualified firms to provide master facilities planning services that would evaluate existing facility conditions, develop a ten (10) year capital improvement plan for CVPD, and a twenty (20) year master facilities plan to be used as a guide for future capital investments and strategic facility decisions. The selected Consultant would provide a comprehensive master plan that includes the following: 1. Evaluation of existing space of Police Department Headquarters, identifying both physical and operations issues of space quality, layout and detail. Page 576 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 4 2. An in-depth needs assessment of police services and staffing requirements based on current and buildout service demands. 3. A detailed analysis of current response times and identification of service gaps. 4. Recommendations for building and parking space to meet operational needs. Optional Services 1. Strategic recommendations for site placement of potential substation in eastern Chula Vista if recommended/warranted. 2. Conceptual design of the proposed substation, including site planning and construction cost estimating, if recommended/warranted. The City received three (3) sealed bids on December 12, 2025. The base bid totals were as follows: NR= Non-Responsive An evaluation team, consisting of Assistant Chief of Police, Director of Development Services, Assistant Director of Public Works, and Police Lieutenant, reviewed the written proposals regarding their qualifications to provide master facilities planning services. After a comprehensive assessment, staff recommended awarding the agreement to Carrier Johnson + Culture in the not-to-exceed amount of $393,815. Carrier Johnson + Culture was selected due to their extensive local knowledge and trusted experience. Their past work in the city, including the PD HQ, City Hall, and current work on the University and Innovation District, provides a unique perspective and reflects their long-standing partnership with Chula Vista. Carrier Johnson + Culture Scope of Work Carrier Johnson + Culture will be responsible for the following six main tasks and an optional scope, if warranted during their initial assessment. 1. Existing Facilities Conditions Evaluation and Needs Assessment a. Assess existing conditions including review of building plans, 1998 Police Facility Master Plan and tour facilities. b. High-level review of existing building systems. c. Conduct a comprehensive needs assessment for police services, including demographic analysis, crime trends, calls for service data, and projected growth through buildout. d. Evaluate current service delivery models and identify limitations or areas for enhancement. e. Engage with City staff and relevant stakeholders to gather operational insights and service expectations. Page 577 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 5 2. Response Time and Service Gap Analysis a. Analyze existing response times for police services using GIS mapping, historical call data, and incident types. b. Identify spatial and temporal service gaps. c. Provide data visualization to illustrate current service coverage limitations and future challenges. 3. Staffing and Operational Requirements a. Evaluate current and projected staffing needs based on projected buildout population. b. Recommend staffing levels, oversight structure, and potential operational support units. c. Include considerations for future scalability and flexible staffing models. 4. Projected Conditions and Programming Needs a. Review industry best practices and emerging trends. b. Using collected data and growth projections, develop programming needs. 5. Operational Concept Development and Analysis a. Develop operational concepts to meet future needs. b. Work with stakeholders to analyze and narrow down the list of operational concepts. 6. Master Facilities Plan a. Based on the outcome of the above analysis, develop ten (10) year capital improvement schedule with estimated costs. b. Provide twenty (20) year master facilities plan to be used as a guide for future capital investments and strategic facility decisions. 7. Eastern Substation Feasibility Study, Conceptual Design and Site Planning (if recommended/warranted) a. Analyze the City’s current police facility distribution in relation to population growth, development patterns, and response time data in eastern Chula Vista. b. Assess whether a substation is required to ensure adequate emergency response coverage and operational efficiency for eastern areas. c. Evaluate the suitability of existing City-owned parcels in eastern Chula Vista for development of a substation, considering site access, response time improvements, and land use compatibility. d. Engage with police operations staff to determine substation functional requirements. e. Develop a conceptual design package for the proposed substation, including site plan alternatives, floor plans, renderings, and cost estimates. f. Recommend optimal timing and phasing for substation development as part of the overall ten (10) and twenty (20) year facilities plan. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. Page 578 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 6 CURRENT-YEAR FISCAL IMPACT If approved, the proposed agreement with Carrier Johnson + Culture would authorize consultant services expenses that shall not exceed $393,815 through the term of the agreement. The fiscal year 2025-26 CIP budget previously appropriated $300,000 to the capital improvement project “Police Substation Feasibility Study” (SAF0171) using the available fund balance of the Public Facilities Development Impact Fee Fund. This item increases the capital improvement project appropriation by $93,815 to $393,815. ONGOING FISCAL IMPACT There is no additional fiscal impact anticipated for this agreement. Any future infrastructure needs, and associated funding actions, identified in the development of the master plan will be brought for City Council consideration. ATTACHMENTS 1. Carrier Johnson + Culture Agreement Staff Contacts: Dan Peak, Acting Chief of Police Adrianna Relph, Special Projects & Legislative Manager Jonathan Alegre, Administrative Services Manager Page 579 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Form Rev 9/30/2025 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) APPROVING A CONSULTANT SERVICES AGREEMENT BETWEEN THE CITY AND CARRIER JOHNSON + CULTURE FOR POLICE DEPARTMENT FACILITIES MASTER PLANNING SERVICES AND (2) AMENDING THE FISCAL YEAR 2025-26 CAPITAL IMPROVEMENT PROGRAM BUDGET AND APPROPRIATING $93,815 TO CIP PROJECT “POLICE SUBSTATION FEASIBILITY STUDY” (SAF0171) PROJECT (4/5 VOTE REQUIRED) WHEREAS, the City of Chula Vista Police Department (CVPD) Headquarters was constructed in 2004 as a modern public safety facility designed to serve the operational needs of the Department at that time; and WHEREAS, more than two decades later, the facility is increasingly insufficient to support the current and projected operational needs of the department due to significant growth in the city, expansion of policing services, and increases in staffing and technological infrastructure; and WHEREAS, as the City continues to expand geographically and demographicall y, the department must maintain adequate staffing levels and operational readiness; and WHEREAS, on November 7, 2025, the City issued RFP P16-2026 seeking competitive proposals from qualified firms to provide master facilities planning services that would evaluate existing facility conditions, develop a 10- year capital improvement plan for CVPD, and a twenty (20) year master facilities plan to be used as a guide for future capital investments and strategic facility decisions; and WHEREAS, the City received three (3) sealed bids on December 12, 2025 and after a comprehensive assessment, staff recommend awarding the agreement to Carrier Johnson + Culture in the not-to-exceed amount of $393,815; and WHEREAS, as the fiscal year 2025-2026 CIP budget previously appropriated $300,000 to the capital improvement project “Police Substation Feasibility Study” (SAF0171) using the available fund balance of the Public Facilities Development Impact Fee Fund, this item requires an additional appropriation of $93,815. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the Consultant Services Agreement, between the City and Carrier Johnson + Culture, in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk and authorizes and directs the City Manager to execute same. Page 580 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Resolution No. Page 2 BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it amends the fiscal year 2025-26 Capital Improvement Program Budget, appropriating $93,815 to Police Substation Feasibility Study (SAF0171) Project from available fund balance of the Public Facilities Development Impact Fee Fund. Presented by Approved as to form by Tiffany Allen Marco A. Verdugo City Manager City Attorney Page 581 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 1 City of Chula Vista Agreement No.: 2026-081 Consultant Name: CARRIER JOHNSON + CULTURE Rev. 3.13.2026 CITY OF CHULA VISTA CONSULTANT SERVICES AGREEMENT WITH CARRIER JOHNSON + CULTURE TO PROVIDE POLICE DEPARTMENT FACILITIES MASTER PLANNING This Agreement is entered into effective as of April 21, 2026 (“Effective Date”) by and between the City of Chula Vista, a chartered municipal corporation (“City”) and CARRIER JOHNSON + CULTURE, a California corporation, (“Consultant”) (collectively, the “Parties” and, individually, a “Party”) with reference to the following facts: RECITALS WHEREAS, City is seeking professional consultant services to prepare a Police Department Facilities Master Plan that would evaluate existing facility conditions, develop a 10- year capital improvement plan for the Chula Vista Police Department (CVPD), and a 20-year master facilities plan for the City to use as a guide for future capital investments and strategic facility decisions; and WHEREAS, in order to procure these services, City solicited proposals in accordance with Chula Vista Muncipal Code Section 2.56.110 for professional services by issuing Request for Proposals (“RFP”) P16-2026, to which it received (3) proposals, two of which were deemed responsive; and WHEREAS, City selected Consultant based on Consultant’s unique qualifications, including their extensive local knowledge and trusted experience; and WHEREAS, Consultant warrants and represents that it is experienced and staffed in a manner such that it can deliver the services required of Consultant to City in accordance with the time frames and the terms and conditions of this Agreement. [End of Recitals. Next Page Starts Obligatory Provisions.] Page 582 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2 City of Chula Vista Agreement No.: 2026-081 Consultant Name: CARRIER JOHNSON + CULTURE Rev. 3.13.2026 OBLIGATORY PROVISIONS NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which the Parties hereby acknowledge, City and Consultant hereby agree as follows: 1. SERVICES 1.1 Required Services. Consultant agrees to perform the services, and deliver to City the “Deliverables” (if any) described in the attached Exhibit A, incorporated into the Agreement by this reference, within the time frames set forth therein, time being of the essence for this Agreement. The services and/or Deliverables described in Exhibit A shall be referred to herein as the “Required Services.” 1.2 Reductions in Scope of Work. City may independently, or upon request from Consultant, from time to time, reduce the Required Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet and confer in good faith for the purpose of negotiating a corresponding reduction in the compensation associated with the reduction. 1.3 Additional Services. Subject to compliance with the City’s Charter, codes, policies, procedures and ordinances governing procurement and purchasing authority, City may request Consultant provide additional services related to the Required Services (“Additional Services”). If so, City and Consultant agree to meet and confer in good faith for the purpose of negotiating an amendment to Exhibit A, to add the Additio nal Services. Unless otherwise agreed, compensation for the Additional Services shall be charged and paid consistent with the rates and terms already provided therein. Once added to Exhibit A, “Additional Services” shall also become “Required Services” for purposes of this Agreement. 1.4 Standard of Care. Consultant expressly warrants and agrees that any and all Required Services hereunder shall be performed in accordance with the highest standard of care exercised by members of the profession currently practicing under similar conditions and in similar locations. 1.5 No Waiver of Standard of Care. Where approval by City is required, it is understood to be conceptual approval only and does not relieve the Consultant of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of the Consultant or its subcontractors. 1.6 Security for Performance. In the event that Exhibit A Section 5 indicates the need for Consultant to provide additional security for performance of its duties under this Agreement, Consultant shall provide such additional security prior to commencement of its Required Services in the form and on the terms prescribed on Exhibit A, or as otherwise prescribed by the City Attorney. 1.7 Compliance with Laws. In its performance of the Required Services, Consultant shall comply with any and all applicable federal, state and local laws, including the Chula Vista Municipal Code. 1.8 Business License. Prior to commencement of work, Consultant shall obtain a business license from City. 1.9 Subcontractors. Prior to commencement of any work, Consultant shall submit for City’s information and approval a list of any and all subcontractors to be used by Consultant in the performance of the Required Services. Consultant agrees to take appropriate measures necessary to ensure that all subcontractors and Page 583 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 3 City of Chula Vista Agreement No.: 2026-081 Consultant Name: CARRIER JOHNSON + CULTURE Rev. 3.13.2026 personnel utilized by the Consultant to complete its obligations under this Agreement comply with all applicable laws, regulations, ordinances, and policies, whether federal, state, or local, including section 1.8, above. In addition, if any subcontractor is expected to fulfill any responsibilities of the Consultant under this Agreement, Consultant shall ensure that each and every subcontractor carries out the Consultant’s responsibilities as set forth in this Agreement. 1.10 Term. This Agreement shall commence on the earlier to occur of the Effective Date or Consultant’s commencement of the Required Services hereunder, and shall terminate, subject to Sections 6.1 and 6.2 of this Agreement, on April 13, 2027, or when the Parties have complied with all their obligations hereunder, whichever occurs first; provided, however, provisions which expressly survive termination shall remain in effect. 2. COMPENSATION 2.1 General. For satisfactory performance of the Required Services, City agrees to compensate Consultant in the amount(s) and on the terms set forth in Exhibit A, Section 4. Standard terms for billing and payment are set forth in this Section 2. 2.2 Detailed Invoicing. Consultant agrees to provide City with a detailed invoice for services performed each month, within thirty (30) days of the end of the month in which the services were performed, unless otherwise specified in Exhibit A. Invoicing shall begin on the first of the month following the Effective Date of the Agreement. All charges must be presented in a line item format with each task separately explained in reasonable detail. Each invoice shall include the current monthly amount being billed, the amount invoiced to date, and the remaining amount available under any approved budget. Consultant must obtain prior written authorization from City for any fees or expenses that exceed the estimated budget. 2.3 Payment to Consultant. Upon receipt of a properly prepared invoice and confirmation that the Required Services detailed in the invoice have been satisfactorily performed, City shall pay Consultant for the invoice amount within thirty (30) days. Payment shall be made in accordance with the terms and conditions set forth in Exhibit A and section 2.4, below. At City’s discretion, invoices not timely submitted may be subject to a penalty of up to five percent (5%) of the amount invoiced. 2.4 Retention Policy. City shall retain ten percent (10%) of the amount due for Required Services detailed on each invoice (the “holdback amount”). Upon City review and determination of Project Completion, the holdback amount will be issued to Consultant. 2.5 Reimbursement of Costs. City may reimburse Consultant’s out-of-pocket costs incurred by Consultant in the performance of the Required Services if negotiated in advance and included in Exhibit A. Unless specifically provided in Exhibit A, Consultant shall be responsible for any and all out-of-pocket costs incurred by Consultant in the performance of the Required Services. 2.6 Exclusions. City shall not be responsible for payment to Consultant for any fees or costs in excess of any agreed upon budget, rate or other maximum amount(s) provided for in Exhibit A. City shall also not be responsible for any cost: (a) incurred prior to the Effective Date; or (b) arising out of or related to the errors, omissions, negligence or acts of willful misconduct of Consultant, its agents, employees, or subcontractors. 2.7 Payment Not Final Approval. Consultant understands and agrees that payment to the Consultant or reimbursement for any Consultant costs related to the performance of Required Services does not constitute a City final decision regarding whether such payment or cost reimbursement is allowable and eligible for Page 584 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 4 City of Chula Vista Agreement No.: 2026-081 Consultant Name: CARRIER JOHNSON + CULTURE Rev. 3.13.2026 payment under this Agreement, nor does it constitute a waiver of any violation by Consultant of the terms of this Agreement. If City determines that Consultant is not entitled to receive any amount of compensation already paid, City will notify Consultant in writing and Consultant shall promptly return such amount. 3. INSURANCE 3.1 Required Insurance. Consultant must procure and maintain, during the period of performance of Required Services under this Agreement, and for twelve months after completion of Required Services, the policies of insurance described on the attached Exhibit B, incorporated into the Agreement by this reference (the “Required Insurance”). The Required Insurance shall also comply with all other terms of this Section. 3.2 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions relating to the Required Insurance must be disclosed to and approved by City in advance of the commencement of work. 3.3 Standards for Insurers. Required Insurance must be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best’s rating of A V or better, or, if insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers (LESLI) with a current A.M. Best’s rating of no less than A X. For Workers ’ Compensation Insurance, insurance issued by the State Compensation Fund is also acceptable. 3.4 Subcontractors. Consultant must include all sub-consultants/sub-contractors as insureds under its policies and/or furnish separate certificates and endorsements demonstrating separate coverage for those not under its policies. Any separate coverage for sub-consultants must also comply with the terms of this Agreement. 3.5 Additional Insureds. City, its officers, officials, employees, agents, and volunteers must be named as additional insureds with respect to any policy of general liability, automobile, or pollution insurance specified as required in Exhibit B or as may otherwise be specified by City’s Risk Manager.. The general liability additional insured coverage must be provided in the form of an endorsement to the Consultant’s insurance using ISO CG 2010 (11/85) or its equivalent; such endorsement must not exclude Products/Completed Operations coverage. 3.6 General Liability Coverage to be “Primary.” Consultant’s general liability coverage must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from the insurance provided by Consultant and in no way relieves Consultant from its responsibility to provide insurance. 3.7 No Cancellation. No Required Insurance policy may be canceled by either Party during the required insured period under this Agreement, except after thirty days’ prior written notice to the City by certified mail, return receipt requested. Prior to the effective date of any such cancellation Consultant must procure and put into effect equivalent coverage(s). 3.8 Waiver of Subrogation. Consultant’s insurer(s) will provide a Waiver of Subrogation in favor of the City for each Required Insurance policy under this Agreement. In addition, Consultant waives any right it may have or may obtain to subrogation for a claim against City. 3.9 Verification of Coverage. Prior to commencement of any work, Consultant shall furnish City with original certificates of insurance and any amendatory endorsements necessary to demonstrate to City that Page 585 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 5 City of Chula Vista Agreement No.: 2026-081 Consultant Name: CARRIER JOHNSON + CULTURE Rev. 3.13.2026 Consultant has obtained the Required Insurance in compliance with the terms of this Agreement. The words “will endeavor” and “but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents, or representatives” or any similar language must be deleted from all certificates. The required certificates and endorsements should otherwise be on industry standard forms. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. 3.10 Claims Made Policy Requirements. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are required and are provided on a claims -made form, the following requirements also apply: a. The “Retro Date” must be shown, and must be before the date of this Agreement or the beginning of the work required by this Agreement. b. Insurance must be maintained, and evidence of insurance must be provided, for at least five (5) years after completion of the work required by this Agreement. c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a “Retro Date” prior to the effective date of this Agreement, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of the work required by this Agreement. d. A copy of the claims reporting requirements must be submitted to the City for review. 3.11 Not a Limitation of Other Obligations. Insurance provisions under this section shall not be construed to limit the Consultant’s obligations under this Agreement, including Indemnity. 3.12 Additional Coverage. To the extent that insurance coverage provided by Consultant maintains higher limits than the minimums appearing in Exhibit B, City requires and shall be entitled to coverage for higher limits maintained. 4. INDEMNIFICATION 4.1. General. To the maximum extent allowed by law, Consultant shall timely and fully protect, defend, reimburse, indemnify and hold harmless City, its elected and appointed officers, agents, employees and volunteers (collectively, “Indemnified Parties”), from and against any and all claims, demands, causes of action, costs, expenses, (including reasonable attorneys’ fees and court costs), liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of Consultant, its officials, officers, employees, agents, and contractors, arising out of or in connection with the performance of the Required Services, the results of such performance, or this Agreement. This indemnity provision does not include any claims, damages, liability, costs and expenses arising from the sole negligence or willful misconduct of the Indemnified Parties. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the Indemnified Parties which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or o fficers, or any third party. 4.2. Modified Indemnity Where Agreement Involves Design Professional Services. Notwithstanding the forgoing, if the services provided under this Agreement are design professional services, as defined by California Civil Code section 2782.8, as may be amended from time to time, the defense and indemnity Page 586 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 6 City of Chula Vista Agreement No.: 2026-081 Consultant Name: CARRIER JOHNSON + CULTURE Rev. 3.13.2026 obligation under Section 1, above, shall be limited to the extent required by California Civil Code section 2782.8. 4.3 Costs of Defense and Award. Included in Consultant’s obligations under this Section 4 is Consultant’s obligation to defend, at Consultant’s own cost, expense and risk, and with counsel approved in writing by City, any and all suits, actions or other legal proceedings that may be brought or instituted against one or more of the Indemnified Parties. Subject to the limitations in this Section 4, Consultant shall pay and satisfy any judgment, award, or decree that may be rendered against one or more of the Indemnified Parties for any and all related legal expenses and costs incurred by any of them. 4.4. Consultant’s Obligations Not Limited or Modified. Consultant’s obligations under this Section 4 shall not be limited to insurance proceeds, if any, received by the Indemnified Parties, or by any prior or subsequent declaration by the Consultant. Furthermore, Consultant’s obligations under this Section 4 shall in no way limit, modify or excuse any of Consultant’s other obligations or duties under this Agreement. 4.5. Enforcement Costs. Consultant agrees to pay any and all costs and fees City incurs in enforcing Consultant’s obligations under this Section 4. 4.6 Survival. Consultant’s obligations under this Section 4 shall survive the termination of this Agreement. 5. CONFLICTS OF INTEREST 5.1 Form 700 Filing. The California Political Reform Act and the Chula Vista Conflict of Interest Code require certain government officials and consultants performing work for government agencies to publicly disclose certain of their personal assets and income using a Statement of Economic Interests form (“Form 700”). In order to assure compliance with these requirements, Consultant shall comply with the disclosure requirements identified in the attached Exhibit C, incorporated into the Agreement by this reference. 5.2 Disclosures; Prohibited Interests. Independent of whether Consultant is required to file a Form 700, Consultant warrants and represents that it has disclosed to City any economic interests held by Consultant, or its employees or subcontractors who will be performing the Required Services, in any real property or project which is the subject of this Agreement. Consultant warrants and represents that it has not employed or retained any company or person, other than a bona fide employee or approved subcontractor working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants and represents that it has not paid or agreed to pay any company or person, other than a bona fide employee or approved subcontractor working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Consultant further warrants and represents that no officer or employee of City, has any interest, whether contractual, non-contractual, financial or otherwise, in this transaction, the proceeds hereof, or in the business of Consultant or Consultant’s subcontractors. Consultant further agrees to notify City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. For breach or violation of any of these warranties, City shall have the right to rescind this Agreement without liability. 5.3 Levine Act. California Government Code section 84308, commonly known as the Levine Act, prohibits public agency officers from participating in any action related to a contract if such officer receives political contributions totaling more than $500 within the previous twelve months, and for twelve months following the date a final decision concerning the contract has been made, from the person or company awarded the contract. The Levine Act also requires disclosure of such contribution by a party t o be awarded a specific Page 587 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 7 City of Chula Vista Agreement No.: 2026-081 Consultant Name: CARRIER JOHNSON + CULTURE Rev. 3.13.2026 contract. In order to assure compliance with these requirements, Consultant shall comply with the disclosure requirements identified in the attached Exhibit D, incorporated into the Agreement by this reference. 6. REMEDIES 6.1 Termination for Cause. If for any reason whatsoever Consultant shall fail to perform the Required Services under this Agreement, in a proper or timely manner, or if Consultant shall violate any of the other covenants, agreements or conditions of this Agreement (each a “Default”), in addition to any and all other rights and remedies City may have under this Agreement, at law or in equity, City shall have the right to terminate this Agreement by giving five (5) days written notice to Consultant. Such notice shall identify the Default and the Agreement termination date. If Consultant notifies City of its intent to cure such Default prior to City’s specified termination date, and City agrees that the specified Default is capable of being cured, City may grant Consultant up to ten (10) additional days after the designated termination date to effectuate such cure. In the event of a termination under this Section 6.1, Consultant shall immediately provide City any and all “Work Product” (defined in Section 7 below) prepared by Consultant as part of the Required Services. Such Work Product shall be City’s sole and exclusive property as provided in Section 7 hereof. Consultant may be entitled to compensation for work satisfactorily performed prior to Consultant’s receipt of the Default notice; provided, however, in no event shall such compensation exceed the amount that would have been payable under this Agreement for such work, and any such compensation shall be reduced by any costs incurred or projected to be incurred by City as a result of the Default. 6.2 Termination or Suspension for Convenience of City. City may suspend or terminate this Agreement, or any portion of the Required Services, at any time and for any reason, with or without cause, by giving specific written notice to Consultant of such termination or suspension at least fifteen (15) days prior to the effective date thereof. Upon receipt of such notice, Consultant shall immediately cease all work under the Agreement and promptly deliver all “Work Product” (defined in Section 7 below) to City. Such Work Product shall be City's sole and exclusive property as provided in Section 7 hereof. Consultant shall be entitled to receive just and equitable compensation for this Work Product in an amount equal to the amount due and payable under this Agreement for work satisfactorily performed as of the date of the termination/suspension notice plus any additional remaining Required Services requested or approved by City in advance that would maximize City’s value under the Agreement. 6.3 Waiver of Claims. In the event City terminates the Agreement in accordance with the terms of this Section, Consultant hereby expressly waives any and all claims for damages or compensation as a result of such termination except as expressly provided in this Section 6. 6.4 Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising out of this Agreement against City unless a claim has first been presented in writing and filed with City and acted upon by City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vis ta Municipal Code, as same may be amended, the provisions of which, including such policies and procedures used by City in the implementation of same, are incorporated herein by this reference. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 6.5 Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in San Diego County, State of California. Consultant hereby waives any right to remove any action from San Diego County as may otherwise be permitted by California Code of Civil Procedure section 394. Page 588 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 8 City of Chula Vista Agreement No.: 2026-081 Consultant Name: CARRIER JOHNSON + CULTURE Rev. 3.13.2026 6.6 Service of Process. Consultant agrees that it is subject to personal jurisdiction in California. If Consultant is a foreign corporation, limited liability company, or partnership that is not registered with the California Secretary of State, Consultant irrevocably consents to service of process on Consultant by first class mail directed to the individual and address listed under “For Legal Notice,” in section 1.B. of Exhibit A to this Agreement, and that such service shall be effective five days after mailing. 7. OWNERSHIP AND USE OF WORK PRODUCT All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced in whole or in part under this Agreement in connection with the performance of the Required Services (collectively “Work Product”) shall be the sole and exclusive property of City. No such Work Product shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express, prior written consent of City. City shall have unrestricted authority to publish, disclose, distribute, and otherwise use, copyright or patent, in whole or in part, any such Work Product, without requiring any permission of Consultant, except as may be limited by the provisions of the Public Records Act or expressly prohibited by other applicable laws. With respect to computer files containing data generated as Work Product, Consultant shall make available to City, upon reasonable written request by City, the necessary functional computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. 8. GENERAL PROVISIONS 8.1 Amendment. This Agreement may be amended, but only in writing signed by both Parties. 8.2 Assignment. City would not have entered into this Agreement but for Consultant’s unique qualifications and traits. Consultant shall not assign any of its rights or responsibilities under this Agreement, nor any part hereof, without City’s prior written consent, which City may grant, condition or deny in its sole discretion. 8.3 Authority. The person(s) executing this Agreement for Consultant warrants and represents that they have the authority to execute same on behalf of Consultant and to bind Consultant to its obligations hereunder without any further action or direction from Consultant or any board, principal or officer thereof. 8.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one Agreement after each Party has signed such a counterpart. 8.5 Entire Agreement. This Agreement together with all exhibits attached hereto, RFP P16-2026 and any amendments thereto, Consultant’s proposal in response to RFP P16-2026, and other agreements expressly referred to herein, constitutes the entire Agreement between the Parties with respect to the subject matter contained herein. All exhibits referenced herein shall be attached hereto and are incorporated herein by reference. All prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are superseded. 8.6 Record Retention. During the course of the Agreement and for three (3) years following completion of the Required Services, Consultant agrees to maintain, intact and readily accessible, all data, documents, reports, records, contracts, and supporting materials relating to the performance of the Agreement, including accounting for costs and expenses charged to City, including such records in the possession of sub- contractors/sub-consultants. Page 589 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 9 City of Chula Vista Agreement No.: 2026-081 Consultant Name: CARRIER JOHNSON + CULTURE Rev. 3.13.2026 8.7 Further Assurances. The Parties agree to perform such further acts and to execute and deliver such additional documents and instruments as may be reasonably required in order to carry out the provisions of this Agreement and the intentions of the Parties. 8.8 Independent Contractor. Consultant is and shall at all times remain as to City a wholly independent contractor. Neither City nor any of its officers, employees, agents or volunteers shall have control over the conduct of Consultant or any of Consultant’s officers, employees, or agents (“Consultant Related Individuals”), except as set forth in this Agreement. No Consultant Related Individuals shall be deemed employees of City, and none of them shall be entitled to any benefits to which City employees are entitled, including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Furthermore, City will not withhold state or federal income tax, social security tax or any other payroll tax with respect to any Consultant Related Individuals; instead, Consultant shall be solely responsible for the payment of same and shall hold the City harmless with respect to same. Consultant shall not at any time or in any manner represent that it or any of its Consultant Related Individuals are employees or agents of City. Consultant shall not incur or have the power to incur any debt, obligation or liability whatsoever against City, or bind City in any manner. 8.9 Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any Party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such Party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified in this Agreement at the places of business for each of the designated Parties as indicated in Exhibit A, or otherwise provided in writing. 8.10 Electronic Signatures. Each Party agrees that the electronic signatures, whether digital or encrypted, of the Parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic Signature means any electronic sound, symbol, or process attached to or logically associated with a record and executed and adopted by a Party with the intent to sign such record, including facsimile or email electronic signatures, pursuant to the California Uniform Electronic Transactions Act (Cal. Civ. Code §§ 1633.1 to 1633.17) as amended from time to time. (End of page. Next page is signature page.) Page 590 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 10 City of Chula Vista Agreement No.: 2026-081 Consultant Name: CARRIER JOHNSON + CULTURE Rev. 3.13.2026 SIGNATURE PAGE CONSULTANT SERVICES AGREEMENT IN WITNESS WHEREOF, by executing this Agreement where indicated below, City and Consultant agree that they have read and understood all terms and conditions of the Agreement, that they fully agree and consent to bound by same, and that they are freely entering into this Agreement as of the Effective Date. CARRIER JOHNSON + CULTURE CITY OF CHULA VISTA BY:________________________________ BY: ________________________________ JACKIE ANGEL TIFFANY ALLEN PRINCIPAL | COO CITY MANAGER APPROVED AS TO FORM BY: _______________________________ Marco A. Verdugo City Attorney Page 591 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 11 City of Chula Vista Agreement No.: 2026-081 Consultant Name: CARRIER JOHNSON + CULTURE Rev. 3.13.2026 EXHIBIT A SCOPE OF WORK AND PAYMENT TERMS 1. Contact People for Contract Administration and Legal Notice A. City Contract Administration: Adrianna Relph 276 Fourth Avenue Chula Vista, CA 91910 619-691-5254 arelph@chulavistaca.gov For Legal Notice Copy to: City of Chula Vista City Attorney 276 Fourth Avenue, Chula Vista, CA 91910 619-691-5037 CityAttorney@chulavistaca.gov B. Consultant Contract Administration: CARRIER JOHNSON + CULTURE Steven Kiss 185 West F Street, Suite 500 San Diego, CA 92101 (213) 246-2604 sak@carrierjohnson.com For Legal Notice Copy to: Same as above. 2. Required Services A. General Description: Develop a comprehensive master plan for capital improvements over the next 10 years and a 20 -year vision for the buildout of the Chula Vista Police Department. The master plan will include the following: 1. Existing Facilities Conditions Evaluation and Needs Assessment 2. Response Time and Service Gap Analysis 3. Staffing and Operational Requirements 4. Project Conditions and Programming Needs 5. Operational Concept Development and Analysis 6. Develop Master Facilities Plan a. Develop 10-year capital improvement schedule with estimated costs. b. Provide 20-year master facilities plan. 7. Eastern Substation Feasibility Study, Conceptual Design and Site Planning (if required) 8. Project Management Page 592 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 12 City of Chula Vista Agreement No.: 2026-081 Consultant Name: CARRIER JOHNSON + CULTURE Rev. 3.13.2026 B. Detailed Description: Carrier Johnson will perform the following: Task Description Deliverables Completion Date 1 Existing Facilities Evaluation & Needs Assessment (report) - Needs Assessment Report June 4, 2026 2 Response Time & Gap Analysis - Response Time and Gap Analysis Report with Maps illustrating current and projected service coverage July 9, 2026 3 Staffing & Operational Requirements - Staffing and Operational Requirements Summary July 30, 2026 4 Projected Conditions and Programming - Facility Program and Space Needs Report, including a 10-year capital improvement schedule August 20, 2026 5 Operational Concept Development & Analysis - September 18, 2026 6 Master Facilities Plan - Final Master Plan incorporating all findings and recommendations, and long-term (10- and 20-year) implementation strategies. October 18, 2026 7 A: Substation Feasibility Study (report) B: Conceptual Design C: Site Planning - Eastern Substation Feasibility Report and Conceptual Design Package— including site analysis, functional program, response time improvement potential, justification for the substation, site November 18, 2026 Page 593 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 13 City of Chula Vista Agreement No.: 2026-081 Consultant Name: CARRIER JOHNSON + CULTURE Rev. 3.13.2026 plans, floor plans, and renderings. 3. Term: In accordance with Section 1.10 of this Agreement, the term of this Agreement shall begin April 21, 2026 and end on April 20, 2027 for completion of all Required Services. 4. Compensation: A. Form of Compensation ☒ Fixed Fee Paid in Increments. For the completion of each Deliverable of the Required Services, as identified in section 2.B., above, City shall pay the fixed fee associated with each Deliverable, in the amounts set forth below: Task No. Deliverable Amount 1 Existing Facilities Evaluation & Needs Assessment (report) $127,646 2 Response Time & Gap Analysis $35,609 3 Staffing & Operational Requirements $37,015 4 Projected Conditions and Programming $31,472 5 Operational Concept Development & Analysis $14,824 6 Master Facilities Plan $48,476 7 (a) Substation Feasibility Study (report) $56,750 7 (b) Conceptual Design $26,400 7 (c) Site Planning $15,625 In accordance with the Budget identified below: Page 594 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 14 City of Chula Vista Agreement No.: 2026-081 Consultant Name: CARRIER JOHNSON + CULTURE Rev. 3.13.2026 Should the City elect, in writing, to the optional services, the budget shall be: B. Reimbursement of Costs ☒ None, the compensation includes all costs Page 595 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 15 City of Chula Vista Agreement No.: 2026-081 Consultant Name: CARRIER JOHNSON + CULTURE Rev. 3.13.2026 Notwithstanding the foregoing, the maximum amount to be paid to the Consultant for services performed through April 13, 2027 shall not exceed $393,815.00 5. Special Provisions: ☒ Permitted Sub-Consultants: Arrington Watkins, Jensen Hughes, OCMI ☐ Security for Performance: None ☒ Notwithstanding the completion date set forth in Section 3 above, City has option to extend this Agreement for one (1) additional one-year term provided that any extension of term may not increase the Agreement not-to- exceed amount without City Council approval. The City Manager or Director of Finance/Treasurer shall be authorized to exercise the extensions on behalf of the City. If the City exercises an option to extend, each extension shall be on the same terms and conditions contained herein, provided that the amounts specified in Section 4 above may not be increased. The City shall give written notice to Consultant of the City’s election to exercise the extension via the Notice of Exercise of Option to Extend document. Page 596 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 16 City of Chula Vista Agreement No.: 2026-081 Consultant Name: CARRIER JOHNSON + CULTURE Rev. 3.13.2026 EXHIBIT B INSURANCE REQUIREMENTS Consultant shall adhere to all terms and conditions of Section 3 of the Agreement and agrees to provide the following types and minimum amounts of insurance, as indicated by checking the applicable boxes (x). Type of Insurance Minimum Amount Form ☒ General Liability: Including products and completed operations, personal and advertising injury $2,000,000 per occurrence for bodily injury, personal injury (including death), and property damage. If Commercial General Liability insurance with a general aggregate limit is used, either the general aggregate limit must apply separately to this Agreement or the general aggregate limit must be twice the required occurrence limit Additional Insured Endorsement or Blanket AI Endorsement for City* Waiver of Recovery Endorsement Insurance Services Office Form CG 00 01 *Must be primary and must not exclude Products/Completed Operations ☒ Automobile Liability $1,000,000 per accident for bodily injury, including death, and property damage Insurance Services Office Form CA 00 01 Code 1-Any Auto Code 8-Hired Code 9-Non Owned ☒ Workers’ Compensation Employer’s Liability $1,000,000 each accident $1,000,000 disease policy limit $1,000,000 disease each employee Waiver of Recovery Endorsement ☒ Professional Liability (Errors & Omissions) $1,000,000 each occurrence $2,000,000 aggregate Other Negotiated Insurance Terms: NONE Page 597 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 17 City of Chula Vista Agreement No.: 2026-081 Consultant Name: CARRIER JOHNSON + CULTURE Rev. 3.13.2026 EXHIBIT C CONSULTANT CONFLICT OF INTEREST DESIGNATION The Political Reform Act1 and the Chula Vista Conflict of Interest Code2 (“Code”) require designated state and local government officials, including some consultants, to make certain public disclosures using a Statement of Economic Interests form (Form 700). Once filed, a Form 700 is a public document, accessible to any member of the public. In addition, consultants designated to file the Form 700 are also required to comply with certain ethics training requirements.3 ☒ A. Consultant will not exert influence over the official or contracting decisions of City and is therefore EXCLUDED4 from disclosure. ☐ B. Consultant WILL exert influence over the official or contracting decisions of City and their disclosure designation is as follows: APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE SERVICES (Category descriptions available at www.chulavistaca.gov/departments/city-clerk/conflict-of-interest-code.) Name Email Address Applicable Designation Enter Name of Each Individual Who Will Be Providing Service Under the Contract – If individuals have different disclosure requirements, duplicate this row and complete separately for each individual Enter email address(es) ☐ A. Full Disclosure ☐ B. Limited Disclosure (select one or more of the categories under which the consultant shall file): ☐ 1. ☐ 2. ☐ 3. ☐ 4. ☐ 5. ☐ 6. ☐ 7. Justification: ☐ C. Excluded from Disclosure 1. Required Filers Each individual who will be performing services for the City pursuant to the Agreement and who meets the definition of “Consultant,” pursuant to FPPC Regulation 18700.3, must file a Form 700. 2. Required Filing Deadlines Each initial Form 700 required under this Agreement shall be filed with the Office of the City Clerk via the City's online filing system, NetFile, within 30 days of the approval of the Agreement. Additional Form 700 filings will be required annually on April 1 during the term of the Agreement, and within 30 days of the termination of the Agreement. 3. Filing Designation The City Department Director will designate each individual who will be providing services to the City pursuant to the Agreement as full disclosure, limited disclosure, or excluded from disclosure, based on an analysis of the services the Consultant will provide. Notwithstanding this designation or anything in the Agreement, the Consultant is ultimately responsible for complying with FPPC regulations and filing requirements. If you have any questions regarding filing requirements, please do not hesitate to contact the City Clerk at (619)691-5041, or the FPPC at 1-866-ASK-FPPC, or (866) 275-3772 *2. Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve as the written determination of the consultant’s requirement to comply with the disclosure requirements set forth in the Code. Completed by: Adrianna Relph, Special Projects & Legislative Manager 1 Cal. Gov. Code §§81000 et seq.; FPPC Regs. 18700.3 and 18704. 2 Chula Vista Municipal Code §§2.02.010-2.02.040. 3 Cal. Gov. Code §§53234, et seq. 4 CA FPPC Adv. A-15-147 (Chadwick) (2015); Davis v. Fresno Unified School District (2015) 237 Cal.App.4th 261; FPPC Reg. 18700.3 (Consultant defined as an “individual” who participates in making a governmental decision; “individual” does not incl ude corporation or limited liability company). Page 598 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 18 City of Chula Vista Agreement No.: 2026-081 Consultant Name: CARRIER JOHNSON + CULTURE Rev. 3.13.2026 EXHIBIT D CONSULTANT LEVINE ACT DISCLOSURE California Government Code section 84308, commonly referred to as the Levine Act, prohibits any City of Chula Vista Officer5 (“Officer”) from taking part in decisions related to a contract if the Officer received a political contribution totaling more than $500 within the previous twelve months, and for twelve months following the date a final decision concerning the contract has been made, from the person or company awarded the contract. The Levine Act also requires disclosure of such contribution by a party to be awarded a specific contract. The Levine Act does not apply to competitively bid, labor, or personal employment contracts; contracts valued at under $50,000; contracts where no party receives financial compensation; or contracts between two or more public agencies. ☒ A. The Levine Act (Govt. Code §84308) DOES NOT apply to this Agreement. ☐ B. The Levine Act (Govt. Code §84308) does apply to this Agreement and the required disclosure is as follows: Current Officers can be located on the City of Chula Vista’s websites below: • Mayor & Council - https://www.chulavistaca.gov/departments/mayor-council • City Attorney - https://www.chulavistaca.gov/departments/city-attorney/about-us • Planning Commissioners – www.chulavistaca.gov/pc • Candidate for Elected Office – www.chulavistaca.gov/elections 1. Have you or your company, or any agent on behalf of you or your company, made political contributions totaling more than $500 to any Officer in the 12 months preceding the date you submitted your proposal, the date you completed this form, or the anticipated date of any Council action related to this Agreement? YES: ☐ If yes, which Officer(s): Click or tap here to enter text. NO: ☐ 2. Do you or your company, or any agent on behalf of you or your company, anticipate or plan to make political contributions totaling more than $500 to any Officer in the 12 months following the finalization of this Agreement or any Council action related to this Agreement? YES: ☐ If yes, which Officer(s): Click or tap here to enter text. NO: ☐ Answering yes to either question above may not preclude the City of Chula Vista from entering into or taking any subsequent action related to the Agreement. However, it may preclude the identified Officer(s) from participating in any actions related to the Agreement. 5 “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. GC § 84308 Page 599 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Item 8.4 Contract Award and CIP Appropriation: Approve a Consultant Services Agreement with Carrier Johnson + Culture for the City of Chula Vista Police Department Facilities Master Planning Effort and Amend the Fiscal Year 2025-26 CIP Budget Accordingly Page 600 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Item 8.4 | Carrier Johnson + Culture Agreementt Background 2001 Civic Center Master Plan Update & Police Headquarters Master Plan 2004 Chula Vista Police Headquarters Opens January 2025 Chula Vista population reaches 281,401 March 2025 City Council referral on substation in eastern Chula Vista Page 601 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Built in 2004, the building is approximately 150,000 square feet and includes core functions such as dispatch, investigations, administrative offices, evidence storage, a crime laboratory, and a holding facility. Status of Police Headquarters Item 8.4 | Carrier Johnson + Culture Agreementt Policing services are anticipated to expand which will increase staffing and related technological infrastructure. Long-term projections anticipate the city reaching approximately 350,000 residents at full build-out. Large-scale developments including the Chula Vista Bayfront, Millenia, Otay Ranch, and University District are expected to significantly increase population density, tourism, traffic, and calls for service. As the city continues to expand geographically and demographically, the department must maintain adequate staffing levels and operational readiness. Page 602 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Item 8.4 | Carrier Johnson + Culture Agreementt November 2025 City issues RFP P16-2026 seeking firms to provide master facilities planning services to evaluate existing facility conditions,develop a ten (10)year capital improvement plan for CVPD,and a twenty (20)year master facilities plan. Scope of Work Master Planning Services Evaluation of existing space of Police Department Headquarters, identifying both physical and operations issues of space quality, layout and detail. An in-depth needs assessment of police services and staffing requirements based on current and buildout service demands. A detailed analysis of current response times and identification of service gaps. Recommendations for building and parking space to meet operational needs. Recommendations for site placement of potential substation in eastern Chula Vista if warranted. This will include conceptual design and cost estimation. Page 603 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Team Delivering Your Master Plan •Carrier Johnson + Culture –Local leadership, civic and police facility expertise, Chula Vista experience •Arrington Watkins –Programming, facility assessment, police facility planning •Jensen Hughes –Staffing, deployment, response time & gap analysis •OCMI –Cost estimating Local Leadership + National Expertise aligned to Chula Vista’s needs Page 604 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda What’s Involved –Our Approach Item 8.4 | Carrier Johnson + Culture Agreement •Completed MP (7 Months) –November 2026 •Facility Condition Assessment •Operational + Staffing Analysis •Response Time + Deployment Modeling •Programming + Space Needs •Master Plan + Substation Feasibility •Substation Concept Design (If Required) This is a stakeholder involved data-driven approach that results in a plan grounded in real data, not assumptions. Page 605 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda What Happens During the Process – Stakeholder Engagement Item 8.4 | Carrier Johnson + Culture Agreementt •Workshops with CVPD Leadership •Staff Interviews + Surveys •Facility Walk-throughs •Data Collection, Analysis, + Validation •Benchmarking of Operations of City’s with Similar Size •Ongoing Check-ins with City Staff This is not a black-box study -we work alongside your team throughout Page 606 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda What the Master Plan Delivers Item 8.4 | Carrier Johnson + Culture Agreement •10-Year Capital Improvement Plan •20-Year Faculties Master Plan •Clear Roadmap for: Facility + Improvements Policing Strategies Staffing Alignment Response Time Improvements Substation Feasibility + Concept (if required) •Value for Chula Vista Built on Real Chula Vista Growth Projections Aligns:Facilities + Staffing + Operations Designed for:Eastward Growth | Increased Service Demand Produces:Actionable + Fundable Plan This Master Plan provides the City with a clear, actionable roadmap -guiding the right investments at the right time. Page 607 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Recommended Action 1) Approve Carrier Johnson + Culture agreement for Police Department facilities master planning services for a not-to-exceed amount of $393,815; and 2) Amending the fiscal year 2025-26 Capital Improvement Program (CIP) budget by appropriating funds to the capital improvement project “Police Substation Feasibility Study” (SAF0171) from available fund balance of the Public Facilities Development Impact Fee Fund Page 608 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 5.56.010 5.56.020 5.56.030 5.56.040 5.56.050 5.56.060 5.56.070 5.56.080 5.56.090 5.56.095 5.56.100 5.56.110 5.56.120 5.56.130 Chapter 5.56 TOBACCO RETAILER Sections: Definitions. Tobacco retailer’s permit required. Permit application and procedure. Issuance of a permit. Permit renewal and expiration. Permits nontransferable. Permit conveys a limited, conditional privilege. Permit fee. Tobacco retailer operating requirements and prohibitions. Sale of certain items prohibited. Compliance monitoring. Suspension or revocation of permit. Violations – Penalties. Requirement for tobacco retailer permit – Operative date. CROSS REFERENCE: Sales and use tax, see Ch. 3.36 CVMC. Smoking prohibited, see Ch. 8.22 CVMC. Prior legislation: Prior code §§ 20.2.1, 20.2.5 – 20.2.9; Ords. 1133, 1178, 2506 and 2693. 5.56.010 The following words and phrases, whenever used in this chapter, shall have the meanings defined in this section unless the context clearly requires otherwise: A. “Arm’s Length Transaction” means a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither of which is under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for which a significant purpose is avoiding the effect of the violations of this chapter is not an Arm’s Length Transaction. B. “Applicant” means the Person applying for a permit pursuant to this chapter. C. “Chief of Police” means the Chief of Police of the City of Chula Vista, or his/her designee. D. “City” means the City of Chula Vista. Ch. 5.56 Tobacco Retailer | Chula Vista Municipal Code Page 1 of 13 The Chula Vista Municipal Code is current through Ordinance 3602, passed October 21, 2025. Page 609 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda E. “City Attorney” means the City Attorney for the City of Chula Vista, or his/her designee. F. “Crime of Moral Turpitude” means a crime involving a readiness to do evil, an act of moral depravity of any kind that has a tendency in reason to shake one’s confidence in their honesty, deceit, or fraud. G. “Drug Paraphernalia” has the meaning set forth in California Health and Safety Code Section 11014.5, as that section may be amended from time to time. H. “Electronic Smoking Device” means an electronic device that can be used to deliver an inhaled dose of nicotine, or other substances, including any component, part, or accessory of such a device, whether or not sold separately. “Electronic Smoking Device” includes any such device, whether manufactured, distributed, marketed, or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah, or any other product name or descriptor. “Electronic Smoking Device” also includes cartridges, cartomizers, e-liquid, smoke juice, tips, atomizers, Electronic Smoking Device batteries, Electronic Smoking Device charges, and any other item specifically designed for the preparation, charging, or use of Electronic Smoking Devices. I. “Flavored Tobacco Product” means a Tobacco Product that contains or emits a taste or smell, other than the taste or smell of tobacco, including, but not limited to, any taste or smell relating to fruit, mint, menthol, wintergreen, chocolate, cocoa, vanilla, honey, candy, dessert, alcoholic beverage, herb, or spice. “Flavored Tobacco Products” do not include products approved by the Food and Drug Administration (FDA) for sale either as a tobacco cessation product or for other therapeutic purposes, where the product is marketed and sold solely for such an FDA-approved purpose. J. “Loose-Leaf Tobacco” means cut or shredded pipe tobacco, usually sold in pouches, excluding any tobacco product which, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making cigarettes, including roll-your-own cigarettes. K. “Owner” means a Person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a Person has a 20 percent or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a Person can or does have or share ultimate control over the day-to-day operations of a business. L. “Person” means any natural person, partnership, cooperative association, corporation, personal representative, receiver, trustee, assignee, or any other legal entity. M. “Premium Cigars” means any cigar that is handmade, has a wrapper that is made entirely from whole tobacco leaf, and has a wholesale price of no less than $12.00. A Premium Cigar does not have filter, tip, or nontobacco mouth. N. “Police Department” means the Chula Vista Police Department, and any agency or Person designated by the Department to enforce or administer the provisions of this chapter. O. “Self-Service Display” means the open display or storage of Tobacco Products or Tobacco Paraphernalia in a manner that is physically accessible in any way to the general public without the assistance of the retailer or Ch. 5.56 Tobacco Retailer | Chula Vista Municipal Code Page 2 of 13 The Chula Vista Municipal Code is current through Ordinance 3602, passed October 21, 2025. Page 610 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda employee of the retailer and a direct person-to-person transfer between the purchaser and the retailer or employee of the retailer. A vending machine is a form of Self-Service Display. P. “Shisha” means a tobacco product that is mixed with molasses, honey, fruit, or dried fruits and is sold for use in a hookah. Q. “Tobacco Paraphernalia” means any item designed for the consumption, use, or preparation of a Tobacco Product. R. “Tobacco Product” means: 1. Any substance containing or derived from tobacco leaf or nicotine, including but not limited to cigarettes, cigars, pipe tobacco, snuff, chewing tobacco, dipping tobacco, or any other preparation of tobacco; 2. Any Electronic Smoking Device; 3. Notwithstanding any provision of subsections (R)(1) and(R)(2) of this section to the contrary, “tobacco product” includes any component, part, or accessory of a tobacco product, whether or not sold separately. “Tobacco Product” does not include any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic purposes where such product is marketed and sold solely for such an approved purpose. S. “Tobacco Retailer” means any Person who sells, offers for sale, or does or offers to exchange for any form of consideration tobacco, Tobacco Products or Tobacco Paraphernalia. “Tobacco Retailing” shall mean the doing of any of these things. This definition is without regard to the quantity of Tobacco Products or Tobacco Paraphernalia sold, offered for sale, exchanged, or offered for exchange. Tobacco Retailer does not include persons licensed by the City to conduct commercial cannabis activity in accordance with Chapter 5.19 CVMC. (Ord. 3525 § 1, 2022; Ord. 3417 § 1, 2018). 5.56.020 It shall be unlawful for any Person to act as a Tobacco Retailer in the City without first obtaining and maintaining, for each location at which Tobacco Retailing is to occur, a valid Tobacco Retailer’s permit pursuant to this chapter, a valid business license pursuant to Chapter 5.02 CVMC, and any and all required state licenses, including but not limited to a California Cigarette and Tobacco Products Retailer’s License. (Ord. 3417 § 1, 2018). 5.56.030 A. All applications shall be submitted on a form supplied by the Police Department and shall include, but not be limited to, the following information: 1. The Applicant’s business name and address. Ch. 5.56 Tobacco Retailer | Chula Vista Municipal Code Page 3 of 13 The Chula Vista Municipal Code is current through Ordinance 3602, passed October 21, 2025. Page 611 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2. The address of the proposed Tobacco Retailer business location. 3. If the Applicant is a natural Person: a. The full true name and any other names ever used by the Applicant; b. The current residential address and telephone number of the Applicant; c. Written proof that the Applicant is 21 years of age or older; d. The Applicant’s height, weight, and color of eyes and hair; e. The Applicant’s valid social security number; f. Photographs of the Applicant as specified by the Chief of Police; g. The Applicant’s business, occupation, and employment history for the five years immediately preceding the date of application, including addresses and dates of employment; h. A list of all crimes for which the Applicant has been convicted, including those dismissed pursuant to Penal Code Section 1203.4, except traffic infractions, and a statement of the dates and places of such convictions. 4. If the Applicant is a corporation, the name of the corporation exactly as shown in its Articles of Incorporation or Charter, together with the state and date of incorporation, the names and residential addresses of each of its current officers and directors, and of each stockholder holding more than 25 percent of the stock of the corporation. 5. If the Applicant is a partnership, the name and residential address of each of the partners, including limited partners. If one or more of the partners is a corporation, the Applicant shall provide the information about that partner required by subsection (A)(4) of this section. 6. If the Applicant is a limited partnership, a copy of the limited partnership’s certificate of limited partnership as filed with the County Clerk. If one or more of the partners is a corporation, the Applicant shall provide the information about that partner required by subsection (A)(4) of this section. 7. If the Applicant is a corporation or partnership, the name of the responsible managing officer pursuant to subsection (C) of this section. 8. A single name and mailing address authorized by the Applicant to receive all communications and notices (the “Authorized Address”) required by, authorized by, or convenient to the enforcement of this chapter. If an Authorized Address is not supplied, the Applicant shall be understood to consent to the provision of notice at the address specified in subsection (A)(1) of this section. 9. All fictitious business names ever used by the Applicant and the respective addresses of those businesses. Ch. 5.56 Tobacco Retailer | Chula Vista Municipal Code Page 4 of 13 The Chula Vista Municipal Code is current through Ordinance 3602, passed October 21, 2025. Page 612 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 10. Whether the Applicant has ever had any license or permit issued by any agency or board, or any city, county, state, or federal agency, suspended or revoked, or has had any professional or vocational license or permit suspended or revoked within five years immediately preceding the application, and the reason for the suspension or revocation. 11. The name and address of the current Owner and lessor of the real property upon which the proposed Tobacco Retailing business is to be conducted, and a copy of the lease or rental agreement. 12. Copies of all business tax certificates and local business licenses. 13. Copies of applications for licenses and licenses issued pursuant to California Business and Professions Code Section 22970 et seq., the “Cigarette and Tobacco Products Licensing Act of 2003.” If an application for a license pursuant to the “Cigarette and Tobacco Products Licensing Act of 2003” has been denied, copies of documentation regarding the reason for the denial of such license. 14. At the discretion of the Chief of Police, such other identification and information, including fingerprints, as may be required in order to discover the truth of the matters herein and/or deemed necessary for the administration or enforcement of this chapter as specified on the application form required by this section. B. Owners, Corporate Officers, Partners Deemed Applicants. Each Owner of a Tobacco Retailer Applicant is deemed a co-Applicant and each shall provide the information required in subsection (A) of this section. For Tobacco Retailer Applicants with less than 20 employees, each corporate officer or partner of a Tobacco Retailer is deemed a co-Applicant and each shall provide the information required in subsection (A) of this section. C. Designation of Responsible Managing Officer. A Tobacco Retailer Applicant that is a corporation or partnership shall designate one of its officers or general partners to act as its responsible managing officer. The responsible managing officer may complete and sign all applications on behalf of the corporate officers and partners. D. Change in Information. An Applicant shall inform the Police Department in writing of any change in the information submitted on an application for a Tobacco Retailer’s Permit within 10 business days of a change. E. All information specified in an application pursuant to this section shall be subject to disclosure under the California Public Records Act (California Government Code Section 6250 et seq.) or any other applicable law, subject to the laws’ exemptions. F. Application Fee. The Applicant shall pay an application fee in an amount to be set by the City Council to cover the costs incurred by the City to process the application. (Ord. 3417 § 1, 2018). 5.56.040 A. Upon the receipt of a complete application for a Tobacco Retailer’s permit and the permit fee required by this chapter, the Chief of Police shall have authority to grant or deny the application for Tobacco Retailer permit. An application for permit may be denied by the Chief of Police for any of the following reasons: Ch. 5.56 Tobacco Retailer | Chula Vista Municipal Code Page 5 of 13 The Chula Vista Municipal Code is current through Ordinance 3602, passed October 21, 2025. Page 613 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 1. The application is received after the designated time and date. 2. The application is not in the required form and/or is incomplete. 3. The Applicant has made a false, misleading, or fraudulent statement, or omission of fact in the application or in the application process. 4. The Applicant or a co-Applicant has failed to submit fingerprints or other information deemed necessary by the Chief of Police pursuant to CVMC 5.56.030. 5. The Applicant or a co-Applicant has within five years immediately preceding the date of the filing of the application been convicted of, suffered any civil penalty, or faced administrative action against any type of license for violations of any tobacco control law, including but not limited to the following offenses: Penal Code Section 308, Business and Professions Code Section 225950 et seq. (“Stop Tobacco Access to Kids Enforcement Act” or the “STAKE Act”), Business and Professions Code Section 22970 et seq. (“Cigarette and Tobacco Products Licensing Act of 2003”), or a charge of violating a lesser-included or lesser-related offense including, but not limited to, Penal Code Section 415, in satisfaction of, or as a substitute for, an original charge of any of the offenses listed in this section. 6. The Applicant or a co-Applicant has within 10 years immediately preceding the date of the filing of the application been convicted of any felony criminal offense or any Crime of Moral Turpitude. 7. There are charges pending against the Applicant or a co-Applicant for a felony offense, a Crime of Moral Turpitude, or an offense involving the use of a weapon. 8. The Applicant or a co-Applicant has within five years immediately preceding the date of the filing of the application been convicted of, suffered any civil penalty, or faced administrative action for violation of local, state, or federal law. 9. The Applicant seeks authorization for Tobacco Retailing that is prohibited pursuant to this chapter, that is unlawful pursuant to this Code including without limitation the zoning, building, and business license tax regulations and codes, or that is unlawful pursuant to any other law. 10. The Applicant or a co-Applicant has had a Tobacco Retailer’s renewal permit or an application for a Tobacco Retailer’s permit denied within one year prior to the date of application. 11. The Applicant or a co-Applicant is ineligible for a Tobacco Retailer permit pursuant to CVMC 5.56.120. B. The Chief of Police shall serve the Applicant, either Personally or by first class mail addressed to the Authorized Address, with dated written notice of the decision to approve or deny the application for a Tobacco Retailer’s permit. If the application has been approved, the notice shall state the permit fee amount, the date by which the permit fee must be paid, and the location where payment must be made. If the application has been denied, the notice shall state the reasons for denial, the effective date of the decision, and the right of the Applicant to appeal the decision to the City Manager. Any appeal must be filed in writing with the City Clerk within 14 days of service of the notice. The City Manager’s determination regarding the application shall be final. The City Manager shall provide dated written notice to the Applicant, either Personally or by first class mail addressed to Ch. 5.56 Tobacco Retailer | Chula Vista Municipal Code Page 6 of 13 The Chula Vista Municipal Code is current through Ordinance 3602, passed October 21, 2025. Page 614 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda the Authorized Address, of the City Manager’s determination and the right of the Applicant to seek judicial review of the City Manager’s determination. C. No permit shall issue pursuant to this chapter unless the permit fee, established in accordance with CVMC 5.56.080, has been timely paid pursuant to the notice issued above. D. A permit issued under this chapter shall be valid for a period of one year from the date of the issuance or from the date of renewal. (Ord. 3417 § 1, 2018). 5.56.050 A. A Tobacco Retailer’s permit shall automatically renew on an annual basis unless the Chief of Police determines prior to the date on which the permit is to be automatically renewed that any of the factors identified in subsection (C) of this section exist. A Tobacco Retailer shall have the duty to ensure that all City records generated pursuant to this chapter are accurate and up to date prior to automatic renewal. B. The Tobacco Retailer shall pay a renewal fee established pursuant to CVMC 5.56.080 prior to the date on which the permit is to be automatically renewed. C. The Chief of Police shall have authority to grant or deny the renewal permit. A renewal permit may be denied by the Chief of Police for any of the following reasons: 1. Any of the grounds for suspension or revocation under CVMC 5.56.110 exist. 2. The permit is suspended or revoked at the time of the application. 3. The Tobacco Retailer has not been in regular and continuous operation in the four months prior to the renewal application. 4. The Tobacco Retailer fails to or is unable to renew any required state licenses. 5. The Tobacco Retailer has failed to pay the renewal fee established pursuant to CVMC 5.56.080 prior to the date on which the permit is to be automatically renewed. 6. The Tobacco Retailer fails to ensure that all City records generated pursuant to this chapter are accurate and up to date prior to the automatic renewal. D. The Chief of Police is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the Chief of Police is authorized to impose additional conditions on a renewal permit if it is determined to be necessary to ensure compliance with state or local laws and regulations or to preserve the public health, safety or welfare. E. The Chief of Police shall serve the Tobacco Retailer, either Personally or by first class mail addressed to the Authorized Address, with dated written notice of the decision to approve or deny the renewal permit. A denial notice shall state the reasons for the action, the effective date of the decision, and the right of the Tobacco Retailer Ch. 5.56 Tobacco Retailer | Chula Vista Municipal Code Page 7 of 13 The Chula Vista Municipal Code is current through Ordinance 3602, passed October 21, 2025. Page 615 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda to appeal the decision to the City Manager. Any appeal must be filed in writing with the City Clerk within 14 days of service of the notice. The City Manager’s determination regarding the renewal permit shall be final. The City Manager shall provide dated written notice to the Tobacco Retailer, either Personally or by first class mail addressed to the Authorized Address, of the City Manager’s determination and the right of the Tobacco Retailer to seek judicial review of the City Manager’s determination. (Ord. 3417 § 1, 2018). 5.56.060 A. A Tobacco Retailer’s permit may not be transferred from one Person to another or from one location to another. A new Tobacco Retailer’s permit is required whenever a Tobacco Retailer has a change in more than 20 percent Ownership of the Tobacco Retailer or whenever a Tobacco Retailer changes location. B. Notwithstanding any other provision of this chapter, prior violations at a Tobacco Retailer location shall continue to be counted against the location and permit ineligibility periods shall continue to apply to the location unless: 1. The location has been transferred to the new Owner in an Arm’s Length Transaction; and 2. The new Owner provides the City with clear and convincing evidence that the new Owner(s) have acquired or are acquiring the location in an Arm’s Length Transaction. (Ord. 3417 § 1, 2018). 5.56.070 Nothing in this chapter shall be construed to grant any Person obtaining and maintaining a Tobacco Retailer’s permit any status or right other than the limited conditional privilege to act as a Tobacco Retailer at the location in the City identified on the face of the permit. It is the responsibility of each Permittee to be informed regarding all laws applicable to Tobacco Retailing, including those laws affecting the issuance of a Tobacco Retailer’s Permit. No Permittee may rely on the issuance of a permit as a determination by the City that the Permittee has complied with all laws applicable to Tobacco Retailing. Nothing in this chapter shall be construed to vest in any Person obtaining and maintaining a Tobacco Retailer’s license any status or right to act as a Tobacco Retailer in contravention of any provision of law. (Ord. 3417 § 1, 2018). 5.56.080 The fee to issue or to renew a Tobacco Retailer’s permit shall be established from time to time by resolution of the City Council. The fee shall be calculated so as to recover the cost of administration and enforcement of this chapter, including, for example, issuing a permit, administering the permit program, retailer education, retailer inspection and compliance checks, documentation of violations, and prosecution of violators, but shall not exceed the cost of the regulatory program authorized by this chapter. All fees and interest upon proceeds of fees shall be Ch. 5.56 Tobacco Retailer | Chula Vista Municipal Code Page 8 of 13 The Chula Vista Municipal Code is current through Ordinance 3602, passed October 21, 2025. Page 616 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda used exclusively to fund the program. Fees are nonrefundable except as may be required by law. (Ord. 3417 § 1, 2018). 5.56.090 A. Compliance with All Laws Required. In the course of Tobacco Retailing or in the operation of the business or maintenance of the location for which a permit issued, it shall be a violation of this chapter for a Permittee, or any of the Permittee’s agents or employees, to violate any local, state, or federal law applicable to Tobacco Products, Tobacco Paraphernalia, or Tobacco Retailing. B. Fixed Location Required. No Person shall engage in Tobacco Retailing at other than a fixed location. For example, Tobacco Retailing by Persons on foot or from vehicles is prohibited. C. Display of Permit. Each Tobacco Retailer permit shall be prominently displayed in a publicly visible location at the permitted location. D. Positive Identification Required. No Person engaged in Tobacco Retailing shall sell or transfer a Tobacco Product or Tobacco Paraphernalia to another Person who appears to be under the age of 27 years without first examining the identification of the recipient to confirm that the recipient is at least the minimum age under state law to purchase and possess the Tobacco Product or Tobacco Paraphernalia. E. Self-Service Displays Prohibited. Tobacco Retailing by means of a Self-Service Display is prohibited. F. Tobacco Display Prohibited without Valid Permit. A Tobacco Retailer without a valid Tobacco Retailer permit shall not display Tobacco Products or Tobacco Paraphernalia in public view. A Tobacco Retailer without a valid Tobacco Retailer permit shall not display any advertisement relating to Tobacco Products or Tobacco Paraphernalia that promotes the sale or distribution of such products from the Tobacco Retailer’s location or that could lead a reasonable consumer to believe that such products can be obtained at that location. G. Drug Paraphernalia. It shall be a violation of this chapter for any Permittee or any of the Permittee’s agents or employees to violate any local, state, or federal law regulating controlled substances or Drug Paraphernalia, except that conduct authorized pursuant to state law shall not be a violation of this chapter. H. Windows. 1. In the course of Tobacco Retailing or in the operation of a business or maintenance of a location for which a permit issued, it shall be a violation of this chapter for a Permittee, or any of the Permittee’s agents or employees, to cover more than 20 percent of the window area with window signs in accordance with CVMC 19.60.500. 2. All windows shall be maintained to ensure law enforcement Personnel have a clear and unobstructed view of the interior of the premises, including the area in which the cash registers are maintained, from exterior public rights-of-way or from the entrance. However, this subsection shall not apply to premises Ch. 5.56 Tobacco Retailer | Chula Vista Municipal Code Page 9 of 13 The Chula Vista Municipal Code is current through Ordinance 3602, passed October 21, 2025. Page 617 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda where there are no windows, or where the design or location of windows or landscaping precludes a view of the interior of the premises from exterior public rights-of-way or from the entrance. I. Change in Information. A Tobacco Retailer shall inform the Police Department in writing of any change in the information submitted on an application for a Tobacco Retailer’s permit within 10 business days of a change. (Ord. 3417 § 1, 2018). 5.56.095 A. Sale of Flavored Tobacco Prohibited. Beginning January 1, 2023, it shall be unlawful for any Person to sell or offer for sale, or to possess with intent to sell or offer for sale, any Flavored Tobacco Product in the City of Chula Vista. 1. There shall be a permissive inference that a Tobacco Retailer in possession of four or more Flavored Tobacco Products, including but not limited to individual Flavored Tobacco Products, packages of Flavored Tobacco Products, or any combination thereof, possesses such Flavored Tobacco Products with intent to sell or offer for sale. 2. There shall be a permissive inference that a Tobacco Product is a Flavored Tobacco Product if: a. A public statement or claim is made or disseminated by the manufacturer of a Tobacco Product, or by any person authorized or permitted by the manufacturer to make or disseminate public statement concerning such tobacco product, that such Tobacco Product has or produces a taste or smell other than tobacco; or b. Text and/or images on the Tobacco Product’s Labeling or Packaging explicitly or implicitly indicates that the Tobacco Product is a Flavored Tobacco Product. B. Exempted Products. This section does not apply to the sale of Shisha, Premium Cigars, or Loose-Leaf Tobacco. (Ord. 3525 § 1, 2022). 5.56.100 A. Compliance with this chapter shall be monitored by the Police Department. In addition, any peace and/or code enforcement officer may enforce the provisions of this chapter. B. The Police Department shall inspect each Tobacco Retailer at least one time per 24-month period. Nothing in this subsection shall create a right of action in any Permittee or other Person against the City or its agents. C. Right of Access. The Police Department and/or their authorized representatives shall have full access to enter a permitted Tobacco Retailer location to conduct an inspection during the operating hours of the Tobacco Retailer. Failure to cooperate with any Police Department inspection may result in a permit violation subject to suspension Ch. 5.56 Tobacco Retailer | Chula Vista Municipal Code Page 10 of 13 The Chula Vista Municipal Code is current through Ordinance 3602, passed October 21, 2025. Page 618 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda or revocation. This subsection shall not be construed to deprive a licensee of any privilege guaranteed by the Fifth Amendment to the Constitution of the United States, or any other constitutional or statutory privileges. (Ord. 3417 § 1, 2018). 5.56.110 A. Suspension or Revocation of Permit for Violation. In addition to any other penalty authorized by law, a Tobacco Retailer’s permit may be suspended or revoked if any court of competent jurisdiction determines, or the Chief of Police finds, based on a preponderance of the evidence, after the Permittee is afforded notice and an opportunity to be heard, that the Permittee, or any of the Permittee’s agents, officers, partners, representatives, managers, or employees, has violated any of the requirements, conditions, or prohibitions of this chapter, or has pleaded guilty, “no contest” or its equivalent, or admitted to a violation of any law designated in CVMC 5.56.020 as follows: 1. Upon a finding by the Chief of Police of a first violation of this chapter at a location, the Permittee shall be issued a warning by the Department. 2. Upon a finding by the Chief of Police of a second violation of this chapter at a location within any 60-month period, the permit shall be suspended for 90 days. 3. Upon a finding by the Chief of Police of a third violation of this chapter at a location within any 60-month period, the permit shall be suspended for one year. 4. Upon a finding by the Chief of Police of a fourth violation of this chapter at a location within any 60-month period, the permit shall be revoked. B. The Chief of Police shall serve the Tobacco Retailer, either Personally or by first class mail addressed to the Authorized Address, with dated written notice of the decision to suspend or revoke the permit. A suspension or revocation notice shall state the reasons for the action, the effective date of the decision, and the right of the Permittee to appeal the decision to the City Manager. An appeal to the City Manager is not available for a revocation made pursuant to subsection (C) of this section. Any appeal must be filed in writing with the City Clerk within 14 days of service of the notice. The City Manager’s determination regarding the suspension or revocation shall be final. The City Manager shall provide dated written notice to the Tobacco Retailer, either Personally or by first class mail addressed to the Authorized Address, of the City Manager’s determination and the right of the Tobacco Retailer to seek judicial review of the City Manager’s determination. C. Revocation of Permit Wrongly Issued. A Tobacco Retailer’s permit shall be revoked if the Chief of Police finds, after the Permittee is afforded notice and an opportunity to be heard, that one or more of the bases for denial of a permit under CVMC 5.56.020 existed at the time application was made or at any time before the permit issued, or one or more of the bases for denial of a renewal permit under CVMC 5.56.050 existed at the time the renewal permit was issued. Notice and appeal of the revocation shall be conducted in accordance with subsection (B) of this section. Ch. 5.56 Tobacco Retailer | Chula Vista Municipal Code Page 11 of 13 The Chula Vista Municipal Code is current through Ordinance 3602, passed October 21, 2025. Page 619 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda D. If a permit issued under this chapter is suspended or revoked, all Tobacco Products and Tobacco Paraphernalia at the suspended or revoked Tobacco Retailer’s location shall be removed from public view for the duration of the suspension or revocation. The Tobacco Retailer additionally shall not display any advertisement relating to Tobacco Products or Tobacco Paraphernalia that promotes the sale or distribution of such products from the Tobacco Retailer’s location or that could lead a reasonable consumer to believe that such products can be obtained at that location for the duration of the suspension or revocation. (Ord. 3417 § 1, 2018). 5.56.120 A. It shall be unlawful for any Person to violate any provision, or to fail to comply with the requirements, of this chapter or any regulation adopted hereunder. Any Person violating any of the provisions or failing to comply with any of the requirements of this chapter or any regulation adopted hereunder shall be guilty of a misdemeanor punishable by a fine of not more than $1,000 or imprisonment for a period of not more than six months, or by both a fine and imprisonment. Each day that a violation continues is deemed to be a new and separate offense. No proof of knowledge, intent, or other mental state is required to establish a violation. B. Causing, permitting, aiding, abetting, or concealing a violation of any provision of this chapter shall also constitute a violation of this chapter. C. Any condition caused or allowed to exist in violation of any of the provisions of this chapter or any regulation adopted hereunder is a public nuisance and may be abated by the City, or by the City Attorney on behalf of the people of the state of California, as a nuisance by means of a restraining order, injunction, or any other order or judgment in law or equity issued by a court of competent jurisdiction. The City, or the City Attorney on behalf of the people of the state of California, may seek injunctive relief to enjoin violations of, or to compel compliance with, this chapter or seek any other relief or remedy available at law or equity, including the imposition of monetary civil penalties. Each day that a violation continues is deemed to be a new and separate offense and subject to a maximum civil penalty of $2,500 for each and every offense. D. Tobacco Retailing without a Valid Permit – Ineligibility for Permit. In addition to any other penalty authorized by law, if the Chief of Police finds based on a preponderance of evidence, after notice and an opportunity to be heard, that any Person has engaged in Tobacco Retailing at a location without a valid Tobacco Retailer’s permit, either directly or through the Person’s agents or employees, the Person shall be ineligible to apply for, or to be issued, a Tobacco Retailer’s permit as follows: 1. After a first violation of this section at a location within any 60-month period, no new permit may issue for the Person or the location (unless Ownership of the business at the location has been transferred in an Arm’s Length Transaction), until 30 days have passed from the date of the violation. 2. After a second violation of this section at a location within any 60-month period, no new permit may issue for the Person or the location (unless Ownership of the business at the location has been transferred in an Arm’s Length Transaction), until 90 days have passed from the date of the violation. Ch. 5.56 Tobacco Retailer | Chula Vista Municipal Code Page 12 of 13 The Chula Vista Municipal Code is current through Ordinance 3602, passed October 21, 2025. Page 620 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda The Chula Vista Municipal Code is current through Ordinance 3602, passed October 21, 2025. Disclaimer: The City Clerk’s Office has the official version of the Chula Vista Municipal Code. Users should contact the City Clerk’s office for ordinances passed subsequent to the ordinance cited above. City Website: www.chulavistaca.gov To be notified when additions, amendments, or revisions are made to the code, send your e-mail address to (be sure to add "Chula Vista Municipal Code" in the subject line) cpc@generalcode.com. Hosted by General Code. 3. After of a third or subsequent violation of this section at a location within any 60-month period, no new permit may issue for the Person or the location (unless Ownership of the business at the location has been transferred in an Arm’s Length Transaction), until five years have passed from the date of the violation. E. Whenever evidence of a violation of this chapter is obtained in any part through the participation of a Person under the age of 18 years old, such a Person shall not be required to appear or give testimony in any civil or administrative process brought to enforce this chapter and the alleged violation shall be adjudicated based upon the sufficiency and persuasiveness of the evidence presented. F. The remedies specified in this section are cumulative and in addition to any other remedies available under State or local law for a violation of this Code. (Ord. 3417 § 1, 2018). 5.56.130 For a Tobacco Retailer business not in existence, a Tobacco Retailer permit must be obtained prior to commencement of Tobacco Retailing. For an existing Tobacco Retailer business, a Tobacco Retailer permit must be obtained the later to occur of six months after the date the Police Department begins accepting applications for Tobacco Retailer permits or upon renewal of the Tobacco Retailer’s business license issued pursuant to Chapter 5.02 CVMC. (Ord. 3417 § 1, 2018). Ch. 5.56 Tobacco Retailer | Chula Vista Municipal Code Page 13 of 13 The Chula Vista Municipal Code is current through Ordinance 3602, passed October 21, 2025. Page 621 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Attachment 4 – Comparison of San Diego and California Jurisdictions TRL Regulations San Diego County and Local Jurisdictions with TRL Regulations Carlsbad Chula Vista Yes $322.00 Chapter 5.56 No No El Cajon Yes 2004 $730.00 Chapter 8.33 Penalties: Revocation of license, proprietor is blacklisted No Escondido Yes 2020 $88.00 No La Mesa Yes 2024 $500.00 Chapter 6.07 2018 2025 Oceanside Yes 2020 $319.63 Prohibit against entry by minors 2007 2021 No Solano Beach Yes 2009 Chapter 6.17 Arm’s Length Transactions 2005 SD County Yes 2020 $730.00 Sec. 256 - Prohibit pharmacies - Density  No new TRL within 500 feet of existing - Caps at 330 - Transfer to immediate family Page 622 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Other California Jurisdictions with TRL Regulations City TRL Effective Fee Codes Other Requirements, Prohibitions, and/or Limitations Alameda Yes 2018 Article XVII Limits on Eligibility for a Tobacco Retailer License: - No pharmacies - Youth populated areas – 300 feet - No new TRL within 500 feet from already licensed location - Not transferable to a different person or arm’s length transaction, if 2022 Chapter 5.90 Concord Yes Chapter 5.100 Limits on Tobacco Retailer Licenses - No electronic devices El Cerrito Yes 2015 Chapter 6.100 Separation Requirements: - Schools, Parks, and Rec Center that are youth populated – 500 foot buffer (excluding the Ohlone Greenway) - Other tobacco retailers – 1,000 foot buffer Fremont Yes 2019 Chapter 8.75 - Outreach and education - Cigarettes sold in packs of 20, $8 price minimum Hermosa Beach Yes 2019 Chapter 5.78 Limits on eligibility and location - No pharmacies 2021 Chapter 5.80 Lynwood Yes Section 4-33.03 Limitations - No license issued in exclusively zoned for residential use - Youth populated – 500 feet - No TRL within 200 feet 2018 Chapter 5.28 Article XIV 2024 Chapter 5.75 San Jose Yes Chapter 6.87 Limits on eligibility and location: - Sensitive uses – 500 feet Santa Rosa Yes 2024 $1,013 Chapter 6-20 Limits on eligibility for tobacco retailer license: - No pharmacies Page 623 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda - Youth oriented areas - No new TRL within 600 feet - Total TRL shall be lesser than the number of State licenser at time of adoption or one to each 2,500 people Union City Yes 2024 Chapter 5.42 Limits on eligibility for a tobacco retailer license. - No new TRL within 500 feet from already licensed location Alameda County Yes 2020 Chapter 3.58 Limits on eligibility for a tobacco retailer license: - No pharmacies - Youth-populated areas – 1000 feet - No new TRL and No existing will be renewed – 500 feet Humboldt County Yes Chapter 7 Limits on Eligibility for a Tobacco Retailer License: - Prohibits pharmacy - Youth – 500 feet - No new TRL and No existing will be renewed – 500 feet Chapter 11.35 No Sonoma County Yes 2017 $350.00 Chapter 32A Limits on eligibility for a license: - No pharmacies - No new TRL if exceeds 1 retailer per 2500 people - Youth Oriented areas - 1000 feet - No new TRL within 500 feet from already licensed location Page 624 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Attachment 4 – Buffers Around Sensitive Locations Page 1 of 4 Exhibit 1 – Tobacco Retailers Impacted by School Buffers Page 625 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Attachment 4 – Buffers Around Sensitive Locations Page 2 of 4 Exhibit 2 – Tobacco Retailers Impacted by Park Buffers Page 626 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Attachment 4 – Buffers Around Sensitive Locations Page 3 of 4 Exhibit 3 – Tobacco Retailers Impacted by Major Transit Stops Buffers Page 627 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Attachment 4 – Buffers Around Sensitive Locations Page 4 of 4 Exhibit 4 – Tobacco Retailers Impacted by Sensitive Locations Page 628 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Attachment 6 - Sensitive Location and Tobacco Retail Permits Buffer of 500 and 1,000 Feet Page 629 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda     Public Tobacco Use & Accessibility Survey Project Engagement VIEWS 532 PARTICIPANTS 123 RESPONSES 1,024 COMMENTS 107 1. Please select your age group. 122 respondents 87% 21+ 13% Ages 16-20 1/22/26, 11:52 AM Chula Vista, CA - Report Creation https://publicinput.com/Report/rcz1ga0hh4w 1/12 Page 630 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2. What is your zip code? 120 respondents 37 % 34 % 10 % 8% 5% 4% 3% 91910 91911 91913 91915 Other 91914 91902 3. How often do you use tobacco products (including cigarettes, e-cigarettes, or smokeless tobacco)? 118 respondents 61 % 17 % 17 % 5% I have never used tobacco products Daily I used to, but I quit Occasionally 1/22/26, 11:52 AM Chula Vista, CA - Report Creation https://publicinput.com/Report/rcz1ga0hh4w 2/12 Page 631 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 4. How easy do you think it is for youth (under 21) in our community to purchase tobacco products? 118 respondents 30 % 28 % 16 % 14 % 12 % Very easy Somewhat easy Somewhat difficult Very difficult Unsure 5. How do you usually purchase tobacco products? 87 Respondents 52%45 ✓ 49%43 ✓ 9%8 ✓ 6%5 ✓ Other Purchased at a retail store Given by family or friends Purchased online 1/22/26, 11:52 AM Chula Vista, CA - Report Creation https://publicinput.com/Report/rcz1ga0hh4w 3/12 Page 632 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 6. Do you believe tobacco products are marketed or sold in ways that appeal to youth (under 21)? 111 respondents 66% Yes 24% No 10% Unsure 7. Have you noticed tobacco or vaping product sales near schools, parks, or youth-oriented areas? 110 respondents 31% Sometimes 30% Often 23% Rarely 16% Never 1/22/26, 11:52 AM Chula Vista, CA - Report Creation https://publicinput.com/Report/rcz1ga0hh4w 4/12 Page 633 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 8. How concerned are you about the health impacts of tobacco use in your community? 112 respondents 50 % 28 % 16 % 6% Very concerned Somewhat concerned Not very concerned Not at all concerned 9. Would you support stronger local regulations to reduce youth access to tobacco and vaping products? 112 respondents 73% Yes 20% No 7% Unsure 10. Please share any comments or suggestions about tobacco use or prevention efforts in our community 1/22/26, 11:52 AM Chula Vista, CA - Report Creation https://publicinput.com/Report/rcz1ga0hh4w 5/12 Page 634 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 1/21/2026 1/15/2026 1/14/2026 1/14/2026 1/13/2026 12/29/2025 12/26/2025 12/20/2025 12/19/2025 12/19/2025 No advertising near schools Educate youth about the harm of smoking. I support freedom and convenience for all the adults anywhere Less flashy lights on smoke shops Provide better ways to dispose of tobacco products in public streets. City of El Cajon provides small receptacles for the public to drop their cigarette butts rather than on the street or better yet, ban public tobacco use. Current measure in place ensure tobacco products are not sold to those under 21 as per the law. Furthermore, the greatest appeal of tobacco products (specifically vapes) to under 21 individuals was flavor. This too has been banned. Current laws already ensure community safety. If anyone thinks otherwise, I encourage them to travel to other cities/states in the country that don't have these protections, they will be appalled. As a college student at San Diego State University who spends time in Chula Vista, I’ve seen how easy it is for youth to access vapes, especially through local smoke shops. Despite age restrictions, many young people seem to know which stores will sell to them amking vaping feel normalized among teens. I think stronger enforcement of tobacco retail laws, regular compliance checks, and meaningful penalties for shops that sell to minors are critical and needed. It would also help to limit the number and location of smoke shops near schools and youth-centered spaces. The tobacco industry has proven itself time and time again to target those under 21. In the 1990's there was a trove of documents released from Philip Morris in a court case where Philip Morris folks literally stated if they could get someone to start smoking at 14 they would have a customer for life. I do not think they have veered away from this attitude. Just become more sly in how they appeal to youth. From pushing vaping to flavors etc. I recommend looking up info from this organization to learn about this history and current efforts to curb tobacco marketing to youth both in the US and abroad. https://corporateaccountability.org/tobacco/ Place the SAME regulations and restrictions of Tobbacco Smoking on Cannibus. The marijuana smell much worse NO ONE IN THE PUBLIC SHOULD HAVE TO PUT UP SMELL OF CANNIBUS AND TOBBACO SMOKE! Please enforce alcohol establishments to not sell tobacco products to our youth. 1/22/26, 11:52 AM Chula Vista, CA - Report Creation https://publicinput.com/Report/rcz1ga0hh4w 6/12 Page 635 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 12/19/2025 12/19/2025 12/18/2025 12/15/2025 12/15/2025 12/10/2025 12/10/2025 12/10/2025 12/10/2025 12/10/2025 12/10/2025 12/10/2025 12/9/2025 Schools should emphasize the derogatory effects of vaping on a regular basis. Limit the amount of shops per district and strengthen fines. Have policy I place or an ordinance that prohibits a store or liquor stores to not sell tobacco products in their stores if they are with 200 yards near schools. Many of the multi-use buildings in the Otay Ranch area have smoke shops located next to parks and pedestrian walkways with high foot traffic. These locations should be limited to the advertising they can display on windows and open doorways. Doors to these establishments should be closed at all times, since paraphernalia and other Tabacco products are in view of minors. Chula Vista should contact the community groups who are assisting the City of El Cajon in their efforts to limit tobacco use by minors. Also, the city should pursue grant funding like the Tobacco Grant Program. Share more experiences/stories of people who suffer consequences from using these products I don’t have any Stop a child immediately you see them using one I believe we should provide more help and support for those who struggle with tobacco addiction. I feel like there is little effort on prevention of Tabacco products in our community and it affects everyone Ok Delay issuance of a driver's license to youth with multiple infractions for tobacco use. Youth tobacco use rates have been dropping. Enforce existing laws and regulations. I've been told parents help youth circumvent the laws 1/22/26, 11:52 AM Chula Vista, CA - Report Creation https://publicinput.com/Report/rcz1ga0hh4w 7/12 Page 636 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 12/9/2025 12/9/2025 12/9/2025 12/8/2025 12/8/2025 12/8/2025 12/8/2025 12/8/2025 12/7/2025 Both my parents smoked in the house until I was 15 years old. I had candy cigarettes as a kid and watched people smoke on TV and in movies. I never tried smoking. Neither did my brother. We were surrounded by smoking and never tried it. It's illegal to sell to someone under 21. City has bigger problem than tobacco use. Otherwise use social media for your prevention efforts. Only way to reach the kids. It is important to hold tobacco retailers accountable and ensure they are following local and state laws in order to protect youth and our community as a whole. Thank you None at this time I don't purchase tobacco products. Try to not let the businesses that sell these products to be so lit up example looks like holiday lights neons, to the youth it’s very enticing makes them curious to see what’s in the shop The colors and the smells Enough as a older person knowing what’s sold there the bright lights are attractive I think that smokers have the same right to smoke and have smoking areas , like the non-smokers have the right to breath fresh air. Please take the smoking áreas back, thats out right too. You also need to include smokeless tobacco products, for example Zyn. Those who purchase of age with a valid ID , have the right to do so. There’s already law of 25’ from building public accesses’. Businesses that are exclusively for that product / purpose should be designed most of the ones I’ve seen have proper ventilation and none smokers don’t need to enter nor participate. As for children under 21, they will find a way to acquire it like anything else. I would prefer to less dispensaries in Chula Vista. The taxes aren’t yielding positive results, because recent reports are showing users are going back to the street corners / dealers. That’s where the real influence is on are children, implying drugs are okay. 1/22/26, 11:52 AM Chula Vista, CA - Report Creation https://publicinput.com/Report/rcz1ga0hh4w 8/12 Page 637 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 12/7/2025 12/6/2025 12/6/2025 12/6/2025 12/6/2025 12/6/2025 12/6/2025 12/6/2025 12/6/2025 1.- Fuera de establecimientos donde se ve den vapeadores y cigarrillos con frecuencia son comprados por adultos y dados a menores de edad. 2.- El 95 % de los fumadores consumen el producto muy cerca de las entradas a negocios, deberían de regular eso, necesitan irse a fumar o vapear al menos 25 metros de las entradas a negocios. 3.- Cómo es posible que autoridades permitan que la gente ande caminando y fumando mariguana, pregunta, entonces cualquier persona puede ahora andar en la vía pública tomando licor? Al final son drogas como una si la permiten y la otra la regulan. As a smoker (who smokes MENTHOL cigarettes) I know I need to quit, and I know children should never start. That being said, I do resent being demonized for my bad habit considering how much money I pay into the system through taxes. I try to be as considerate as possible, but I believe I also have the right to walk down the street with a cigarette (or vape) considering how many other irritants and pollutants are in the same open-air space. Any substance that has a proven addiction profile. Should be kept ftom children, and education for everyone should be ongoing Tobacco use is also tied to littering. Users tend to litter in public with no regard to environmental impact Schools need to check backpacks, when I went to high school in 2020. Kids would smoke vapes in class, at the time I did tell the teacher but if that happened in 2020 I can imagine it is still going on. My grandmother got told a couple weeks back if she could purchase a vape for a teenager he would pay her double, she said no. We need police officers outside liquor stores or security guards. I have seen students vaping inside high school bathrooms. My daughter feels uncomfortable using the school bathrooms because of other students vaping and doing drugs. I have seen students vaping inside high school bathrooms. My daughter feels uncomfortable using the school bathrooms because of other students vaping and doing drugs. Make tobacco and vaping illegal to consume in public spaces, have stronger regulations for where sellers of tobacco and vaping products are located, push them out of the communities and more out to industrial areas. Some stores actually require a Drivers License to prove age - and I am in my 70's. 1/22/26, 11:52 AM Chula Vista, CA - Report Creation https://publicinput.com/Report/rcz1ga0hh4w 9/12 Page 638 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 12/6/2025 12/5/2025 12/5/2025 12/5/2025 12/5/2025 12/5/2025 12/5/2025 12/4/2025 12/4/2025 Have you noticed tobacco or vaping product sales near schools, parks, or youth-oriented areas? you do know whaT 7 -11 SELLS RIGHT, HOW ABOUT LIQUOR STORES ? your targeting kids not asking real questions i'll name some vape products you do nothing about cause vape products some in many forms just you dont want to ask fair questions you want to frame the questions. : High 90's Live Resin | 1g - Baja Gusherz - AIO - Hybrid ; many more if this is about tobacco vapes or nicotine vapes . i would you add more ages as to not target kids. i think your survey sucks. I believe they are more influenced through friends and social media. If you are stricter on prohibiting in certain areas, they will still find somewhere to smoke no matter what. I was excited to hear that the City Council is considering multicultural districts along Broadway. I don't think all the cigarette butts or stores advertising and selling cheap tobacco products are conducive to the environment you are trying to create. Code enforcement will be key to success of any program. Thank you! Gas stations and/or liquor stores. etc. that sell tobacco products (and alcohol) are within walking distances of elementary schools, middle schools, or high schools. For example: 407 E St., 1401 Hilltop Dr., 401 Telegraph Canyon Rd., many, many more. The smoke shops are out of control. They advertise products like mushrooms on sidewalks signs with designs that are appealing to youth. I recommend that every Council member and city staff member visit one or more of these shops. They are all up and down Broadway. It's disgusting! I believe youths should be protected from tobacco products and educated on its side affects. But adults should have the right to chose if they want to use tobacco products of any kind. The ban on vaping products is unjust and government overreach. The amount of middle school and high school age kids who vape in public is astounding and bothersome. Having government entities regulate what type of tobacco or nicotine products one consumes is insane. I understand there are some flavors that may appease younger people but you shouldn’t chop down the whole tree because of a few rotten apples. You have craft beers now with labels that have “Fruity Pebbles, Sonic the Hedgehog, Mario Bros” and other cartoon characters on them and nothing is being done about that. If you’re going to shut down these kind of advertising, might as well do it across the whole board. 1/22/26, 11:52 AM Chula Vista, CA - Report Creation https://publicinput.com/Report/rcz1ga0hh4w 10/12 Page 639 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 12/4/2025 12/4/2025 12/3/2025 12/3/2025 12/3/2025 12/3/2025 12/3/2025 12/3/2025 12/3/2025 12/3/2025 Seven Eleven and gas stations sell tabbacco and vape products very close to schools. My high school daughter tells me kids smoke in the school restrooms and threaten people who will rat on them If it’s underaged minors acquiring tobacco products or vaping equipment they would not be allowed to purchase the products themselves they can only acquire from someone they know or they find it it discarded as trash by another person It is the parents responsibility to monitor their kids, and how they spend the money they get. As a former smoker and current e-cig user, we should not be penalized for youth smokers and vapers. In addition to the effects on youth while it may seem very strict I think local ordinances to keep our community safe from secondhand smoke of vaping and traditional cigarette products would be helpful. I believe it's unfair that I have to inhale someone else's smoke even if they are Outdoors it's not only unpleasant it's unhealthy and even what we learned during covid about the spread of particulates and viruses I think it's worth exploring actually having a local ordinance to ban people from smoking and community areas outdoors not just the 25 ft distancing from the doors of businesses. Additionally, I believe it's worth exploring even how smoke inhalation affects members of the community I for example live in a nice community yet my neighbor is constantly smoking traditional cigarettes as well as marijuana daily and this lingers in my whole neighborhood next to Residents who have kids not only is it harmful for them to be inhaling that but also it's just unpleasant to try to be in my own backyard and have to breathe in people's marijuana and cigarette smoke. No more regulations. Education and awareness may help. Start early in elementary and middle school. It's not good for you in the long term. Smoking can cause lung cancer, COPD, and severe illnesses such as pneumonia and bronchitis. I would like to see more disciplinary action taken on kids using these products (for example zero tolerance for using them in schools) Education on the effects of vaping. Pop-ups throughout the community for youth interaction. Give retailer incentives. Ban smoke in any public areas My kid goes to a high school and let me know there is vaping going on in classrooms and bathrooms all day. You see kids vaping at parks and purchasing them at the mall. 1/22/26, 11:52 AM Chula Vista, CA - Report Creation https://publicinput.com/Report/rcz1ga0hh4w 11/12 Page 640 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 12/3/2025 12/3/2025 12/3/2025 12/3/2025 12/3/2025 11/26/2025 1) Smoke stop shop 411 3rd Ave is a 2 min walk across the street to CVLCC Middle School 314 Park Way. 2) I live on tv East side of a neighbor who smokes right next to my bedroom window and the ocean breeze pushes the smoke into not only my bedroom but my house. I can’t open my windows since he started smoking, can we please put an ordinance that requires neighbors to be a certain distance away? 3) in apartment/rental homes that are in residential neighborhoods can there be an ordinance where tenants can’t smoke within certain feet of the neighbors house if they are on the west? 3) could we make an ordinance to only smoke in the front or back yard but not side yards so the smoke. Is less likely to go directly into neighbor windows? I have bronchial issues and don’t want to die from second hand smoke and I’ve never even tried a cigarette, vape or anything! Thank you for this survey, hopefully you take suggestions seriously. I think there is enough government control already, people even young people will make their own choices. None I’ve seen adults buying for kids. Most under age kids have someone buy them Tobacco products The vaping laws are already too much. If applicable child knows someone willing to buy for them they will get it. No law will stop that. 1/22/26, 11:52 AM Chula Vista, CA - Report Creation https://publicinput.com/Report/rcz1ga0hh4w 12/12 Page 641 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda     Tobacco Retailer Survey Project Engagement VIEWS 293 PARTICIPANTS 14 RESPONSES 97 COMMENTS 14 1. What type of business do you operate? 12 Respondents 42%5 ✓ 33%4 ✓ 25%3 ✓ 25%3 ✓ 17%2 ✓ 0%0 ✓ Other Liquor store Convenience store Gas station Smoke/vape shop Grocery store 1/22/26, 2:11 PM Chula Vista, CA - Report Creation https://publicinput.com/Report/i4pbrtqpnmf 1/5 Page 642 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2. What is your business's zip code? 13 respondents 31 % 31 % 15 % 15 % 8% 0% 91910 91911 91914 Other 91913 Others 3. Does your business currently sell any of the following products? 11 Respondents 55%6 ✓ 45%5 ✓ 45%5 ✓ 45%5 ✓ 27%3 ✓ 9%1 ✓ Cigars or cigarillos Traditional cigarettes Smokeless tobacco (chew, snuff) E-cigarettes or vaping products None of the above Flavored tobacco products 1/22/26, 2:11 PM Chula Vista, CA - Report Creation https://publicinput.com/Report/i4pbrtqpnmf 2/5 Page 643 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 4. Approximately what percentage of your total sales come from tobacco or vaping products? 10 respondents 40 % 20 % 20 % 10 % 10 % 0% 10–25% Less than 10% 26–50% More than 75% Not sure 51–75% 5. How would you describe the number of tobacco or vape retailers in your area? 11 respondents 45 % 27 % 18 % 9% About the right amount Not sure Too many Too few 1/22/26, 2:11 PM Chula Vista, CA - Report Creation https://publicinput.com/Report/i4pbrtqpnmf 3/5 Page 644 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 6. How familiar are you with local and state tobacco sales laws (such as age restrictions and licensing requirements)? 11 respondents 91 % 9% 0% Very familiar Somewhat familiar Others 7. In your experience, how often do underage customers attempt to buy tobacco or vaping products? 10 respondents 40 % 30 % 20 % 10 % Rarely (once every few months) Never Sometimes (a few times per month) Often (several times a week) 8. Do you have any comments or suggestions for improving communication or compliance support for retailers? 1/22/26, 2:11 PM Chula Vista, CA - Report Creation https://publicinput.com/Report/i4pbrtqpnmf 4/5 Page 645 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 1/14/2026 1/14/2026 1/14/2026 1/1/2026 12/30/2025 there should be more monitoring on the smoke shops . a lot of them are selling illegal products and they get away with it . most smoke shops are selling most of the illegal products that are not approved to be sold . there should be some monitoring . More check ups on smoke shops Nope Reach out to every tobacco license holder to inform them of upcoming discussions like this one and possible law changes. A yearly update on all the latest laws in the area would be incredible! Work with State, County and federal agencies to be more streamline in compliance. Show all comments 1/22/26, 2:11 PM Chula Vista, CA - Report Creation https://publicinput.com/Report/i4pbrtqpnmf 5/5 Page 646 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Attachment 7 – Summary of CVMC 5.56 Tobacco Retailer Policy Areas Policy Options for Discussion to Reduce the Number of Tobacco Retailers of Retailer No current law in place. No specific were received from community members regarding limiting specific retailer types from selling tobacco products. Focus on the "bad actors". the City’s leadership in tobacco control and recommended prohibiting pharmacies from selling tobacco products. pharmacies from obtaining a Tobacco Retailer Permit. Consider restricting smoke shops as permitted tobacco retailers due to higher violation rates identified during compliance Set Maximum Caps on Permit Issuance No current law in place. the concentration of tobacco retailers in certain areas of the City, particularly western Chula Vista. a position and deferred to City Council regarding potential permit caps by Council District or retailer density. establishing a maximum number of tobacco retailer permits citywide &/or by geographic area based on population thresholds or Council District boundaries. Consider regulations to establish permit caps Permit Proximity Buffers No current law in place. raised concerns about the concentration of tobacco retailers in western Chula Vista. retailer permits within 1,000 feet of another permit. Apply the restriction to new Consider establishing minimum distance requirements between tobacco retailers. Page 647 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda and tourism. permits seeking relocation, while providing a “legacy” status to existing retailers currently operating within the 1,000-foot buffer. Allow permit transfer to new qualified applicants at the Should restrictions apply to existing businesses? Sensitive Locations No current law in place. raised concerns about proximity to schools, parks, and other youth-serving locations. Consider “legacy” status for businesses that existed prior to sensitive location. retailer permits within 1,000 feet of sensitive locations (schools grades K–12, parks, and major transit stops). Apply the restriction to new permits and existing permits seeking relocation, while providing a “legacy” status to existing retailers currently operating within the 1,000-foot buffer. Allow permit transfer to new qualified applicants at the minimum distance requirements around sensitive locations. Should restrictions apply to existing businesses? Transfer of Retail Permits 5.56.060 - Permits Retailers expressed interest in a pathway to sell their approval process Guidance for business owners on the City website Page 648 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Permits are currently non-transferable. a tobacco retailer permit. approval for a tobacco retailer permit prior to business ownership transfer. regarding the tobacco retailer permit process. Consider amendments to CVMC Chapter 5.56.060 to allow a conditional permit pre-approval process for prospective buyers. Determine if existing businesses should have a “legacy” status for Page 649 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Staff Recommendations to Strengthen CVMC Chapter 5.56 Focus Area Current Law Community Input HWAC Advisory Recommendation Staff Recommendation Compliance CVMC Chapter 5.56.100 - Compliance Monitoring Tobacco retailers shall be inspected at least once every 24 months to ensure compliance with tobacco retailer permit requirements. and retailers expressed confusion regarding state inspections versus local compliance inspect ions and the roles of different enforcement agencies. inspection frequency of one inspection every 24 months, unless violations are identified. Consider expanding compliance inspections to additional City departments to enforcement efforts. Additional resources being considered for SIU to assist with administration. Authorize other departments to assist with inspections. Require permit review before renewal rather than automatic renewal. Administrative Citations Administrative Citations Progressive within 12- month period: members expressed that financial penalties should act aa a meaningful deterrent, particularly for repeat violators. Expressed 60 months is too long. violations while retaining the cumulative timeframe at 60 months. higher administrative fines for tobacco-related violations, particularly for repeat or serious violations. Violations and Penalties Violations of the Tobacco Retailer Permit ordinance may result civil penalties of up to between minor and major violations within the penalty structure. civil penalty structure and maximum penalty amounts. penalty structure that distinguishes between minor and major violations. Explore higher penalties Page 650 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda $2,500 for each and every offense, in addition to permit suspension or revocation. tools violators who do not respond to lower-level interventions. Explore setting a maximum cap with flexibility based on the Revocation Suspension & Revocation Violation Escalation Structure within 60-month period: terest in ensuring the violation and penalty structure is consistent with other regulatory pro grams and provides clear accountability for repeated violations. violation timeframe to 48 months and include one warning before suspension penalties. Provide discretion to the Police Chief to deny, modify, suspend, or revoke permits based on violations, with the right to request an administrative hearing to appeal the decision. Clarify the types of violations associated with each enforcement penalty. authority for violations by owners, permittees, or employees. Allow the City to impose conditions or restrictions based on violations. Establish a clear process for written notice of violation and intent to deny, modify, suspend, or revoke a permit. Maintain the right to request an administrative hearing to appeal enforcement decisions. Unflavored Tobacco List Certain Items Prohibited Defines flavored tobacco and prohibits Community members expr essed interest in aligning local definitions with state law to No formal recommendation adopted. State Unflavored Tobacco List (UTL). Incorporating the UTL into Page 651 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda accordance with state law. consistent enforcement. to City Council for policy direction. local enforcement authority rather than relying solely on state enforcement. Marketing to Youth Defines prohibited advertising. colorful or highly visible signage that may appeal to youth. restrict both outdoor and window advertising to reduce youth exposure. street-facing and window advertising. Options may include limits on advertising visibility, youth-appealing imagery, or Employee Training Tobacco holder signs a Statement of Understanding acknowledging compliance with tobacco sales laws. expressed interest in additional employee education and tools to help ensure staff comply with tobacco sales laws and prevent violations. employees sell tobacco products to sign a Statement of Understanding acknowledging tobacco sales laws and retailer responsibilities. Return to HWAC to further discuss employee education and training options. employees tobacco products to sign a Statement of Understanding acknowledging tobacco sales laws and retailer responsibilities. Page 652 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2520 Venture Oaks Way, Suite 100, Sacramento, CA 95833 | (916)646-5999 | cfca.energy April 17, 2026 Chula Vista City Council 276 Fourth Avenue Chula Vista, CA 91910 RE: Comments On Potential Tobacco Policy Amendments Honorable Mayor and Councilmembers, The California Fuels & Convenience Alliance (CFCA) represents a majority of California’s 12,000+ retail fuel and convenience store operators, including in the city of Chula Vista. We appreciate the opportunity to share our perspective as the City moves forward with exploring potential policy changes. Below, you will find CFCA’s recommendations for any tobacco policy amendments that the Council may consider. POLICYMAKING DECISIONS SHOULD BE DRIVEN BY TRIED-AND-TRUE METHODS We understand and support the City’s intention to regulate safe and compliant tobacco sales. However, we would caution against doing so while utilizing arbitrary regulatory tactics such as geographic distance restrictions from community-frequented areas and other retailers. These zoning restrictions could impose undue strain on small “mom-and-pop” convenience store operators. The CDC and U.S. Surgeon General have provided guidance for proven and effective tobacco regulation measures, many of which are successfully implemented throughout California. Some of these guidelines include taxation of tobacco products, bans on smoking in public spaces, public education campaigns, and strong enforcement and hefty fines for non- compliant retailers. Despite scrupulous studies regarding public health, there has not been a demonstrated causal link between tobacco retailer proximity and underage tobacco use. Hence, we strongly urge the Council to prioritize tried-and-true methods of tobacco regulation backed by evidence and real-world implementation, as opposed to arbitrary tactics that only serve to harm small businesses. CURRENT TOBACCO REGULATIONS ARE EFFECTIVE According to the City’s data on tobacco enforcement and inspections, the rates of compliance amongst Chula Vista’s tobacco retailers sit at an impressive 99% in 2025. This indicates that the City’s current tobacco regulatory structure has been exceptionally effective when implemented in full. Some recent violations involving flavored tobacco products stemmed from ambiguity regarding the new Unflavored Tobacco List (UTL), rather than being driven by malice. It is Written Communications Item No. 8.5 Lam 4-17-26 Page 653 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2520 Venture Oaks Way, Suite 100, Sacramento, CA 95833 | (916)646-5999 | cfca.energy expected that following the publication of the new UTL, flavored tobacco violations will decline to nearly 100 percent compliance as a result of the added clarity. Introducing additional regulations could only prove to hinder and complicate business operations for the City’s already-compliant tobacco retailer base. THE CITY’S PENALTIES ARE ALREADY AMONG THE STRICTEST IN THE REGION In addition to Chula Vista’s existing tobacco regulatory structure, tobacco retailers are also subject to the City’s stringent penalty structure. Out of the 18 cities within the San Diego region, Chula Vista ranks in the top three for penalty severity. A 90-day and 365-day suspension for a retailer’s second and third violation respectively, coupled with a five-year lookback period, are what have led to the City’s success with tobacco regulation. We respectfully suggest that any and all penalties be made proportionate to violation severity and frequency, particularly for compliant retailers who may make unintended errors. TOBACCO LICENSE TRANSFERABILITY PRESERVES BUSINESS EQUITY We recognize and applaud the City’s intention pertaining to the management of tobacco retailer density in certain neighborhoods. That said, any new caps on Tobacco Retail Licenses (TRL) should consider the financial realities of running a small business in today’s business landscape. In an industry where a majority of businesses are family-owned and operated, businesses themselves could represent an operator’s primary retirement asset. Unlike workers with a traditional retirement pension or 401(k), these business owners rely on their business valuation at the time of sale to fund their retirement. As is the reality for many small retail convenience store operators in other municipalities, owning a store where TRL caps or geographic restrictions have been implemented, severely depreciates the business’ value and impacts the owner’s retirement possibilities. We respectfully urge the City not to include any caps on the number of TRL’s citywide, and to omit any language that would prohibit tobacco license transferability. We respectfully urge City Council to enforce the current tobacco policy, emphasize tried-and- true methods of tobacco regulation, and prioritize Chula Vista’s local businesses when exploring potential policy changes moving forward. Thank you for your time and consideration. Sincerely, Bryan Lam, Policy & Engagement Analyst California Fuels & Convenience Alliance Page 654 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda From:Rana To:CityClerk Subject:Protect Responsible Small Businesses – Tobacco Retail Policy Feedback Date:Tuesday, April 21, 2026 10:53:14 AM You don't often get email from Learn why this is important WARNING - This email originated from outside the City of Chula Vista. Do not click any links and do not open attachments unless you can confirm the sender. PLEASE REPORT SUSPICIOUS EMAILS BY USING THE PHISH ALERT REPORT BUTTON or to reportphishing@chulavistaca.gov Dear Mayor and Members of the City Council, I am writing as a business owner/manager in Chula Vista to respectfully ask that you carefully consider the impact of any new tobacco retail regulations on small, responsible businesses like ours. We do not support youth tobacco use or the sale of illegal products. We are committed to compliance by consistently checking identification, training staff, and adhering to all applicable laws and regulations. Responsible retailers should not be penalized for violations they actively work to prevent. As you consider new policies, we strongly encourage the inclusion of protections for existing businesses in good standing. Specifically, we ask that current retailers be allowed to transfer ownership and continue operating under a new owner, regardless of caps or distance buffer requirements. A clear grandfathering provision is essential to ensure that business owners can sell their businesses without losing their livelihood or investment. We also have concerns about adopting the proposed “massage business” enforcement model. Its lack of clarity may create uncertainty and increase the risk of inconsistent or unfair enforcement. Instead, we recommend strengthening the current system by incorporating a structured fine-based approach that supports increased inspections and consistent accountability. Written Communications Item No. 8.5 Habib 4-21-26 Page 655 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Additionally, when ownership changes, the new owner should be evaluated independently. Violations associated with a previous owner should not carry over, as this creates an unfair burden and discourages responsible business transitions. We respectfully urge the City Council to focus enforcement efforts on addressing actual violations, while protecting businesses that are in compliance and contributing positively to the community. Thoughtful, balanced policies will help maintain public health goals without unintentionally harming small, law-abiding retailers. Thank you for your time and consideration. Sincerely, Saad Habib Broadway Smoke Shop in Chula Vista 04/21/2026 Page 656 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda li=JII School of Public Health (1 SHARE THIS SUBSTANCE USE First-Ever Local Tobacco Sales Ban Nearly Elin1inated Tobacco P11rchases In California Cities Almost every store in Beverly Hills and Manhattan Beach that was subject to the ban stopped selling these products within three months, and the policy did not decrease overall retail sales nor push business to stores in neighboring areas. January 23, 2026 BY JILLIAN MCKOY Item 8.5 - Additional Information Page 657 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 658 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 659 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 660 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 661 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Page 662 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Policy Discussion: Reducing Tobacco Retailer Permits Under CVMC Chapter 5.56 City Council April 21, 2026 Presented by: Nicole Carnahan, Deputy City Attorney Dan Peak, Acting Police Chief Stacey Kurz, Director Housing and Homeless Services Page 663 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Council Referral May 13, 2025 Research and evaluate potential updates to the City’s Tobacco Retail Permit (TRP) program to: Staff Identified Areas for Further Evaluation: 1) Strengthen local regulations Compliance, Enforcement, &Penalties (to be brought back in the near future) 2) Explore strategies to reduce the overall number of tobacco retailers Policies for: -Type of Retailers -Permit Issuance Cap(s) -Retailer Proximity -Buffer from Sensitive Locations -Transfer of Permit Page 664 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Community Outreach Timeline Page 665 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda History of Tobacco Policy in Chula Vista Page 666 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda •California's statewide flavored tobacco ban (2022 SB 793) •Established Unflavored Tobacco List (UTL) (2025 •Other California cities have adopted stronger TRP policies, such as: •Caps on retailer density •Distance requirements from schools •Non-Transferable licenses Evolving Regulatory Landscape State & Local Laws Since 2018 Page 667 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda •SB 1314: January 1, 2028, would prohibit smoke shops from: •Within 600-foot radius of a school or a day care center. •Retail sales 10:00 p.m. to 6:00 a.m. •Creation of a separate license category and fee rates. •AB 957: Would prohibit pharmacies from selling tobacco products. •AB 762:Ban single-use disposable, battery-embedded vapor inhalation devices Evolving Regulatory Landscape Proposed Legislation as of 4/1/2026 Page 668 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Existing CVMC 5.56 Tobacco Retailer Program Page 669 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda CVMC 5.56 Tobacco Retailer Permit Process Application to Police Department -Ownership interest -Prior business/employment -Certain criminal history Chief of Police Approval -Permitted for 1 year -Retailer responsible for records Chief of Police Denial -Application Issues -Legal/compliance issues -Criminal history/pending -Prohibited activities -Past denials/ineligibility Automatic Renewal -Automatic unless noncompliance Renewal Denial -Conditions warrant suspension/revocation -Permit currently suspended/revoked -Failure to renew state licenses -Fail to pay renewal fee -Fail to maintain records Page 670 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda How Compliance Inspections Are Conducted Example of Inspection Checklist Used by the CVPD Compliance Inspection Areas: •Licensing & Permits •Sales Restrictions •Product Restrictions •Store Operations Page 671 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda CVMC 5.56 Compliance Inspections 2022 -2025 106 RETAILER INSPECTIONS UNDER CVMC 5.56 88 MINOR DECOY OPERATIONS FURNISHING TO MINORS FLAVORED TOBACCO THC SALES 17 16 4 99 UNDERCOVER BUYS 37 Major Violations Page 672 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Major Violation Large Seizures Page 673 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Major Violation Hidden Product Page 674 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Compliance Checks by the State 2022 -2025 147 INSPECTIONS FLAVOR BAN SEIZURES 15 CIGARETTE SEIZURES 3 CITATIONS ISSUED 13 2022 5 2023 43 2024 0 2025 99 California Department of Tax and Fee Administration Page 675 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda CVMC 5.56 Tools for Compliance Citations Progressive within 12-month period: $100 $200 $500 + Civil Penalties Permit Actions Progressive over 60-month period: 1 2 3 4 Warning 90-day Suspension 1-year Suspension Revocation Criminal Misdemeanor punishable by a fine of not more than $1,000 or imprisonment for a period of not more than six months $2,500 for each and every offense Page 676 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda CVMC 5.56 Examples of 1st Violation $100 Citation Permit Actions 1 WarningTools for compliance:&/or Example #1: Lack of Required Signage Violation of CVMC 5.56.090(A). Compliance with All Laws Required.In the course of Tobacco Retailing or in the operation of the business or maintenance of the location for which a permit issued, it shall be a violation of this chapter for a Permittee, or any of the Permittee’s agents or employees, to violate any local, state, or federal law applicable to Tobacco Products,Tobacco Paraphernalia, or Tobacco Retailing. Example #2: Possession of Flavored Tobacco Violation of CVMC 5.56.095(A)(1).There shall be a permissive inference that a Tobacco Retailer in possession of four or more Flavored Tobacco Products, including but not limited to individual Flavored Tobacco Products, packages of Flavored Tobacco Products,or any combination thereof, possesses such Flavored Tobacco Products with intent to sell or offer for sale.Page 677 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Staff Recommended Amendments to CVMC 5.56 -Tobacco Retailer Amendments/Updates •5.56.090 –Operating requirements •Employees •Marketing •5.56.095 –Product restrictions •UTL •5.56.100 -Compliance Monitoring •Inspection Authority •5.56.110 –Suspension and revocation •Permit Violations •5.56.120 -Violations-Penalties •Administrative Citations Page 678 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Policy Discussion to Reduce Permits Page 679 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Range of Options to Restrict Tobacco Retailers General Considerations: •Applicability to existing and/or new permits •Timing of retrictions immediate and/or phased Page 680 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Examples Around California Restrictions on Type of Retailer Limit # of Permits Issued Distance Between Permits Buffer Around Sensitive Locations Local Jurisdicti ons Prohibit pharmacies: SD County, Alameda City & County,Fremont, Hermosa Beach, Santa Rosa,Humboldt County, Sonoma County, National City Caps on Issuance: 25 = Oakley 54= National City 330 = SD County 1 per 1,000 people = Hesperia, Lynwood 1 per 2,500 people = Santa Rosa, Alameda County,Humboldt County, Sonoma County No new permits surrounding existing permit: 200 ft.= Hesperia, Lynwood 500 ft. = SD County, Alameda City & County, San Jose, Union City, Alameda County,Humboldt County, Sonoma County 1,000 ft.=El Cerrito, National City Youth populated areas: 300 ft.= Alameda 500 ft.= El Cerrito, Fremont, Hermosa Beach, Hesperia, Lynwood, Humboldt County 600 ft.= Santa Rosa 1,000 ft.= Union City, Alameda County,Sonoma County, National City Sensitive uses: 500 ft. = San Jose Residential zone: Hesperia, Lynwood Proposed State Law AB 957: Prohibit pharmacies SB 1314:Limit smoke shop sales hours 10:00 p.m.to 6:00 a.m. & create a separate license SB 1314:Prohibit smoke shops from within 600- foot radius of a school or a day care center.Page 681 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Current Tobacco Retail Landscape in Chula Vista (142 Retailers) Distric t 2: 56 Distric t 1: 19 Distric t 4: 51 Distric t 3: 14 Over 75% of retailers are in Districts 2 and 4 Page 682 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 1) Type of Retailer Policy Discussion Community Input HWAC Advisory Recommendation No specific comments were received from community members limiting retailer types selling products. Focus on the actors". Commission noted the City’s in tobacco recommended prohibiting pharmacies from selling tobacco products. Policy Options Consider amendments to CVMC 5.56 –Tobacco Retailer Permit Requirements to: • Prohibit pharmacies (4) from obtaining a Tobacco Retailer Permit. • Consider restricting smoke shops (19) as permitted tobacco retailers due to higher violation rates identified during compliance inspections. Page 683 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 2) Caps on Permit Issuance Policy Discussion Community Input HWAC Advisory Recommendation Concerns were raised about the concentration of tobacco retailers certain areas of the City, western Chula Vista. Should consider future growth. HWAC did not take a position and deferred to City Council regarding potential permit caps by Council District or retailer density. Council District or Geography Population (Based on estimated City population of 280,000) 1 per 5,000 = appr. 56 1 per 2,500 = appr. 112 Policy Options Consider establishing a maximum number of tobacco retailer permits citywide or by geographic area based on population thresholds or Council District boundaries. Consider regulations to establish permit caps and issuance criteria.Page 684 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 3) Permit Proximity Policy Discussion Community Input HWAC Advisory Recommendation Community members raised concerns about the of tobacco retailers in Chula Vista. Consider future growth and tourism. Prohibit new tobacco retailer permits within 1,000 feet of another permit. Apply the restriction to new permits and existing permits seeking relocation, while providing a legacy exemption to existing retailers currently operating within the 1,000-foot buffer. Allow permit transfer to new qualified applicants Policy Options Consider establishing minimum distance requirements between tobacco retailers. Page 685 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 4) Buffer Sensitive Locations Policy Discussion Community Input HWAC Advisory Recommendation Community members raised concerns about proximity schools, parks, and other youth-serving locations. Consider legacy businesses that existed prior to sensitive location. Prohibit new tobacco retailer permits within 1,000 feet of sensitive locations (schools grades K– 12, parks, and major transit stops). Apply the restriction to new permits and existing permits seeking relocation, while providing a legacy exemption to existing retailers currently operating within the 1,000-foot buffer. Allow permit transfer to new Policy Options Consider establishing minimum distance requirements around sensitive locations. Should restrictions apply to existing businesses? Page 686 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 3) Permit Proximity & 4) Buffer Sensitive Locations Impact in Reducing Permits 66 Existin g Permits Page 687 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda 5) Transfer of Retail Permits Current Law Community Input HWAC Advisory Recommendation CVMC 5.56.060 – Permits Nontransferable Retailers interest in a to sell their with assurance a potential could qualify tobacco permit. Establish a conditional process prospective to obtain for a tobacco retailer permit to business ownership City Improvements & Policy Options Guidance for business owners on the City website regarding the tobacco retailer permit process. Consider amendments to CVMC 5.56.060 –Permits Nontransferable to allow a conditional permit approval process for prospective buyers. Determine if existing businesses should have a legacy Page 688 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Direction from City Council: Potential Amendments to CVMC 5.56 -Tobacco Retailer New Policy Areas for Discussion 1)Restrict type of retailers 2)Set issuance caps 3)Limit permit proximity 4)Buffer sensitive locations 5)Establish conditional transfers Page 689 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Backup Slides.. Page 690 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Public Health Considerations •Tobacco use remains the leading cause of preventable death in the U.S. U.S. •Over 490,000 deaths annually linked to smoking and secondhand smoke. •Nearly 90% of smokers begin before age 18. Access and Violations •Community…. •Business… •62% of full compliance inspections in 2025 yielded major violations. CVMC 5.56 Implementation Challenges •Narrow scope of authority. •Evolving tobacco industry. •Ability to enforce locally and appropriately for offense. •Confusion over state v. city laws. Reasons to Strengthen CVMC 5.56 Page 691 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Required Licenses / Permits License/Permit Required California Department of Tax and Fee Administration (CDTFA) Chula Vista Tobacco Retailer Permit (CVMC 5.56) Chula Vista Business License Initial & Annual Renewal Fee $265 (Prior to July 1, 2026) $450 (after July 1, 2026) $322 5 or less employees $25.00 $25.00 More than 5 employees $52.50 Inspection Frequency Approximately 1-3 years or more frequent w/ violations Within 24 months or more frequent w/ violations N/A Inspection Items •CDTFA license •Supporting purchase/sales invoices for for inventory •Valid California tax stamps affixed •Excise tax was paid on inventory •State License, City Permit & City Business License •Proper signage (underage tobacco warning warning signs) •Employees over 18 •No single cigs or cigs sold in packs less than 20 N/A Flavored Tobacco Products Unflavored Tobacco List (UTL) identifies specific products that have no characterizing characterizing flavor and are prohibited. Prohibits any tobacco product with a taste or smell smell other than tobacco (e.g., fruit, mint, menthol, menthol, candy, dessert, alcohol, herbs, spices). N/APage 692 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Compliance Current Law Community Input HWAC Advisory Recommendation CVCM 5.56.100 Tobacco shall be least once months to compliance with tobacco permit Community members and retailers expressed confusion regarding state inspections versus local compliance inspections and the roles of different enforcement agencies. Retain the current inspection frequency of one inspection every 24 months, unless violations are identified. Consider expanding compliance inspections to additional City departments to support enforcement efforts. City Improvements & Staff Recommendations Additional resources considered for SIU to administration. • Authorize other to assist with • Consider requiring review before renewal than automatic renewal Page 693 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Administrative Citations Current Law Community Input HWAC Advisory Recommendation CVMC 1.41.100 - Administrative citatio Progressive within 12-month period: Community members expressed that financial penalties should act aa a meaningful deterrent, particularly for repeat violators. Expressed 60 months is too long. Increase penalties for violations while retaining the cumulative timeframe at 60 months$100 $200 $500 + Staff Recommendations Consider amendments to establish higher administrative fines for tobacco-related violations, particularly for repeat or serious violations. Explore setting a maximum cap with flexibility based on the severity of the violation. Page 694 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Civil Penalties Current Law Community Input HWAC Advisory Recommendation CVMC 5.56.120 – Violations and Penalties Violations of the Tobacco Retailer Permit ordinance may result in civil penalties of up to $2,500 for each and every offense, in addition to permit suspension or revocation. Interest in distinguishing minor and major violations within the penalty structure. Maintain the civil penalty and maximum amounts. Staff Recommendations Consider amendments to CVMC 5.56.120 –Violations and Penalties to allow for a more graduated penalty structure that distinguishes between minor and major violations. Explore higher penalties or enhanced enforcement tools for repeat or long- term violators who do not respond to lower-level interventions.Page 695 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Suspension & Revocation Current Law Community Input HWAC Advisory Recommendation CVMC 5.56.110 Violation Escalation Structure within 60-month period: War ning 90- day Suspension 1- year Suspension Re Stakeholders expressed interest in ensuring the violation and penalty structure is consistent with other regulatory programs and provides clear accountabili ty for repeated violations. Reduce the cumulative violation timeframe to 48 months and include one warning before suspension penalties. Provide discretion to the Police Chief to deny, modify, suspend, or revoke permits based on violations, with the right to request an administrative hearing to appeal the decision. Clarify the types of violations associated with each enforcement penalty. 1 2 3 4 Staff Recommendations Consider amendments to CVMC 5.56.110 – Suspension or Revocation of Permit to: • Clarify enforcement authority for violations by owners, permittees, or employees • Allow the City to impose conditions or restrictions based on violations • Establish a clear process for written notice of violation and intent to deny, modify, Page 696 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Unflavored Tobacco List Current Law Community Input HWAC Advisory Recommendation CVMC 5.56.095 - Sale of Certain Items Prohibited Defines flavored tobacco products and prohibits their sale in accordance with state law. Community members expressed interest in aligning local definitions with state law to reduce confusion and ensure consistent enforcement. No formal recommendation adopted.The Commission City Council for direction. Staff Recommendations Consider amendments to CVMC 5.56.095 –Sale of Certain Prohibited to adopt the Unflavored Tobacco List Incorporating the UTL into ordinance would allow local enforcement authority rather relying solely on state Page 697 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Marketing to Youth Current Law Community Input HWAC Advisory Recommendation CVMC 5.56.090 Windows Some retailers use colorful or highly visible signag e that may appeal to youth. Further restrict both outdoor and window advertising to reduce youth exposure. City Improvements & Staff Recommendations Consider amendments to CVMC 5.56.090 –Tobacco Retailer Operating Requirements and Prohibitions to address street-facing and window advertising. Options may include limits on advertising visibility, youth-appealing imagery, or window coverage.Page 698 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Employee Training Current Law Community Input HWAC Advisory Recommendation Tobacco permit holder signs a of acknowledging compliance tobacco sales laws. Retailers interest in employee education and tools to help staff comply tobacco sales and prevent violations. Require employees who tobacco products to Statement of acknowledging tobacco laws and retailer responsibilities. Return to HWAC to discuss employee and training options. City Improvements/ Policy Options Consider amendments to CVMC 5.56.090 –Tobacco Retailer Operating Requirements and Prohibitions to require employees who sell tobacco products to sign a Statement of Understanding acknowledging tobacco sales laws and retailer Page 699 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Tobacco Retailers in Proximity 500 ft & 1,000 ft Buffer Analysis Page 700 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Tobacco Retailers Located Near Schools 500 ft & 1,000 ft Buffer Analysis Page 701 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Tobacco Retailers Located Near Parks 500 ft & 1,000 ft Buffer Analysis Page 702 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Tobacco Retailers Located Near Transit 500 ft & 1,000 ft Buffer Analysis Page 703 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda v . 0 0 5 P a g e | 1 April 21, 2026 ITEM TITLE City Boards and Commissions: Place an Ordinance on First Reading Amending the Municipal Code to Implement District-Based Nominations for Certain Boards and Commissions Report Number: 26-0164 Location: No specific geographic location Department: City Clerk & City Attorney G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended Action Place an ordinance on first reading amending the Chula Vista Municipal Code to redesignate four seats on the Board of Library Trustees, Charter Review Commission, Sustainability Commission, Traffic Safety Commission, and Veterans Advisory Commission to use a district-based nomination process, one seat per district; require appointees to the district-designated seats on the Traffic Safety Commission to reside in the corresponding district; provide that appointees to the district-designated seats on the other listed bodies are not required to reside in the corresponding district; and clarif y that the existing Municipal Code process for the City Clerk to propose reassignment of seat designations for City Council consideration and approval applies when appointment processes are adjusted. (First Reading) SUMMARY On December 16, 2025, City Council made a referral to the City Clerk, in coordination with the City Attorney, to review the City’s boards and commissions appointment framework and return with recommended amendments to support greater district-based representation, consistent with legal constraints, subject- matter expertise, and the City Charter. On January 20, 2026, City Council received a presentation and directed staff to return with an ordinance to change four seats to use a district-based nomination process, without a district residency requirement for Page 704 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 2 the members, for the following bodies: Board of Library Trustees, Charter Review Commission, Sustainability Commission, Traffic Safety Commission, and Veterans Advisory Commission. On April 14, 2026, the City Council considered a draft ordinance based on the direction provided on January 20, 2026. In addition, staff recommended clarifying language to confirm that the existing Municipal Code process for the City Clerk to propose reassignment of seat designations for City Council consideration and approval applies when appointment processes are adjusted, in addition to when seat qualifications are modified. The City Council also directed staff to revise the draft ordinance to require that appointees to the district-nominated seats on the Traffic Safety Commission reside in the corresponding district. The proposed ordinance implements that direction. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (“CEQA”) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Boards and commissions with potential recommended changes to their structure were notified prior to and following the City Council meetings related to this item and were invited to submit written or in-person comments. DISCUSSION Background The proposed ordinance implements City Council direction provided on January 20, 2026, following a review of opportunities for greater district-based representation on City boards and commissions. City Council directed staff to return with an ordinance redesignating four seats on specified bodies to use a district-based nomination process, one per district, without a district residency requirement for appointees . On April 14, 2026, City Council further directed that appointees to the district-nominated seats on the Traffic Safety Commission be required to reside in the corresponding district. Proposed Amendments The proposed ordinance would amend the Municipal Code to redesignate four seats, one per district, on each of the following bodies to use a district-based nomination process:  Board of Library Trustees  Charter Review Commission  Sustainability Commission  Traffic Safety Commission  Veterans Advisory Commission Under this structure, each of the four seats would be nominated by the corresponding District Councilmember and appointed by a majority vote of the full City Council in accordance with the City Charter. Page 705 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda P a g e | 3 Appointees to these seats would not be required to reside in the corresponding district, except for district- nominated seats on the Traffic Safety Commission, for which appointees would be required to reside in the corresponding district. Seat Reassignment Clarification The Municipal Code currently establishes a process by which seat designations are reassigned when seat qualifications are modified. To provide clarity, staff recommends including language confirming that this existing process also applies when appointment processes are adjusted. This clarification is consistent with current practice and is intended to ensure an orderly transition as terms expire and seats are redesignated. Transition and Implementation Because the district-based nomination process would not include a district residency requirem ent for the affected bodies, other than the Traffic Safety Commission, the change would not affect the qualifications of any current members to continue serving in their seats. Appointees to district-nominated seats on the Traffic Safety Commission, however, would be required to reside in the corresponding district upon appointment or reappointment. The City Clerk would propose reassignment of seat designations to align with the updated appointment processes, with such reassignments brought forward for City Council consideration and approval. As of the effective date of the ordinance, the new appointment process for redesignated seats would apply to any existing vacancies and to future vacancies as they occur, whether scheduled (expiration of term) or unscheduled (e.g., resignation). DECISION-MAKER CONFLICT Staff have reviewed the decision contemplated by this action and have determined that it is not site-specific and consequently, the real property holdings of the City Councilmembers do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff are not independently aware and have not been informed by any City Councilmember of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT No fiscal impact associated with the introduction and adoption of the proposed ordinance. ONGOING FISCAL IMPACT No ongoing fiscal impact is anticipated. ATTACHMENTS 1. Redline version of recommended changes to the Chula Vista Municipal Code Staff Contact: Kerry Bigelow, City Clerk; Marco Verdugo, City Attorney Page 706 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda C:\Program Files\eSCRIBE\TEMP\e5729dde-e5e8-48d5-9fc5-d17ee8b16b4c\16483217237Ordinance - District-Based Commission Seats.docx ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING VARIOUS SECTIONS OF THE CHULA VISTA MUNICIPAL CODE TO IMPLEMENT DISTRICT-BASED NOMINATIONS FOR CERTAIN BOARDS AND COMMISSIONS, AND CLARIFY THE PROCESS FOR REASSIGNMENT OF SEAT DESIGNATIONS WHEN APPOINTMENT PROCESSES ARE ADJUSTED WHEREAS, on December 16, 2025, the City Council of the City of Chula Vista directed the City Clerk, in coordination with the City Attorney, to review the City’s boards and commissions appointment framework and return with recommended amendments to support greater district-based representation, consistent with applicable legal requirements, subject-matter expertise considerations, and the City Charter; and WHEREAS, on January 20, 2026, the City Council received a presentation regarding potential amendments and directed staff to return with an ordinance redesignating four seats, one per City Council district, on certain boards and commissions to use the district-based nomination process described in CVMC Section 2.25.052(C), without imposing a district residency requirement on appointees; and WHEREAS, the City Council’s direction applied to the following bodies: the Board of Library Trustees, Charter Review Commission, Sustainability Commission, Traffic Safety Commission, and Veterans Advisory Commission; and WHEREAS, on April 14, 2026, the City Council further directed that appointees to district- nominated seats on the Traffic Safety Commission be required to reside in the corresponding district; and WHEREAS, under the proposed district-based nomination process, each redesignated seat would be nominated for appointment by the corresponding District Councilmember subject to approval by a majority vote of the full City Council in accordance with the City Charter; and WHEREAS, CVMC 2.25.035 currently establishes a process by which the City Clerk shall propose reassignment of seat designations for City Council consideration and approval when seat qualifications are modified; and WHEREAS, the City Council desires to clarify that this existing reassignment process also applies when appointment processes are adjusted, in order to promote administrative clarity and ensure orderly transition as terms expire and seats are redesignated. NOW, THEREFORE the City Council of the City of Chula Vista does ordain as follows: Section I. The following sections in various chapters in Chula Vista Municipal Code Title 2 are hereby amended and shall read as follows: Page 707 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Ordinance Page 2 2.25.035 Membership – Changes to seat qualifications. A. If changes are made to the qualifications for one or more seats on a board or commission, including redistricting having occurred, seats being changed from at-large to district- based, qualifications or the applicable appointment process being changed for a seat, or a similar event, the City Clerk shall recommend to the City Council for approval the assignments of the seated members to the seats, with the intent of reducing disruption to the board or commission, to the extent possible. B. When a member is reassigned, the member shall retain the term dates they were originally assigned. Reassigning a seat shall not extend a term or allow a member to serve more consecutive terms than the member would otherwise be entitled to serve. C. Notwithstanding subsection (A) of this section, if a member does not qualify under the new requirements for the seat to which the member has been assigned, the member nonetheless shall be entitled to serve out the remainder of the member’s term, with a qualified replacement to be appointed and seated for the succeeding term. 2.29.040 Membership. The Commission shall consist of seven voting members, to be appointed in accordance with Article VI of the City Charter and Chapter 2.25 CVMC. 1. General Appointments. Three Voting Members shall be nominated and appointed in accordance with the general appointment process specified in CVMC 2.25.052(A). 2. District-Based Appointments. Four Voting Members shall be nominated and appointed in accordance with the district-based appointment process specified in CVMC 2.25.052(C). Members are not required to reside in the corresponding City Council district. 2.32.060 Membership. The Sustainability Commission shall consist of seven Voting Members and two Youth Advisory Members, to be appointed in accordance with Article VI of the City Charter and Chapter 2.25 CVMC. 1. General Appointments. Three Voting Members shall be nominated and appointed in accordance with the general appointment process specified in CVMC 2.25.052(A). 2. District-Based Appointments. Four Voting Members shall be nominated and appointed in accordance with the district-based appointment process specified in CVMC 2.25.052(C). Members are not required to reside in the corresponding City Council district. 3. Youth Advisory Members. Two Youth Advisory Members shall meet the qualifications specified in CVMC 2.25.030(E) and shall be nominated and appointed in accordance with the general appointment process specified in CVMC 2.25.052(A). 2.39.040 Membership. Page 708 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Ordinance Page 3 The Commission shall consist of seven voting members, to be appointed in accordance with Article VI of the City Charter and Chapter 2.25 CVMC. 1. General Appointments. Three Voting Members shall be nominated and appointed in accordance with the general appointment process specified in CVMC 2.25.052(A). 2. District-Based Appointments. Four Voting Members shall be nominated and appointed in accordance with the district-based appointment process specified in CVMC 2.25.052(C). Members are not required to reside in the corresponding City Council district. 2.44.030 Membership. The Traffic Safety Commission shall consist of seven Members who shall be appointed in accordance with Article VI of the City Charter and Chapter 2.25 CVMC. 1. General Appointments. Three Voting Members shall be nominated and appointed in accordance with the general appointment process specified in CVMC 2.25.052(A). 2. District-Based Appointments. Four Voting Members shall be nominated and appointed in accordance with the district-based appointment process specified in CVMC 2.25.052(C). Members must be a resident of the corresponding Council district and must maintain their district residency throughout their tenure. 2.45.040 Membership. In accordance with Charter Section 605, the Board of Library Trustees shall consist of five Voting Members and one Youth Advisory Member, to be appointed in accordance with Article VI of the City Charter and Chapter 2.25 CVMC. 1. General Appointment. One Voting Member shall be nominated and appointed in accordance with the general appointment process specified in CVMC 2.25.052(A). 2. District-Based Appointments. Four Voting Members shall be nominated and appointed in accordance with the district-based appointment process specified in CVMC 2.25.052(C). Members are not required to reside in the corresponding City Council district. 3. Youth Advisory Member. One Youth Advisory Member shall meet the qualifications specified in CVMC 2.25.030(E) and shall be nominated and appointed in accordance with the general appointment process specified in CVMC 2.25.052(A). Section II. Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of C hula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Page 709 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Ordinance Page 4 Section III. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section IV. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section V. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by Approved as to Form by Kerry K. Bigelow, MMC Marco A. Verdugo City Clerk City Attorney Page 710 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Attachment 1 – Redline Version of Municipal Code Updates Page 1 of 3 2.25.035 Membership – Changes to seat qualifications. A. If changes are made to the qualifications for one or more seats on a board or commission, including redistricting having occurred, seats being changed from at-large to district-based, qualifications or the applicable appointment process being changed for a seat, or a similar event, the City Clerk shall recommend to the City Council for approval the assignments of the seated members to the seats, with the intent of reducing disruption to the board or commission, to the extent possible. B. When a member is reassigned, the member shall retain the term dates they were originally assigned. Reassigning a seat shall not extend a term or allow a member to serve more consecutive terms than the member would otherwise be entitled to serve. C. Notwithstanding subsection (A) of this section, if a member does not qualify under the new requirements for the seat to which the member has been assigned, the member nonetheless shall be entitled to serve out the remainder of the member’s term, with a qualified replacement to be appointed and seated for the succeeding term. Charter Review Commission: 2.29.040 Membership. The Commission shall consist of seven voting members, to be appointed in accordance with Article VI of the City Charter and Chapter 2.25 CVMC. 1. General Appointments. Three Voting Members shall be nominated and appointed in accordance with the general appointment process specified in CVMC 2.25.052(A). 2. District-Based Appointments. Four Voting Members shall be nominated and appointed in accordance with the district-based appointment process specified in CVMC 2.25.052(C). Members are not required to reside in the corresponding City Council district. Sustainability Commission: 2.32.060 Membership. The Sustainability Commission shall consist of seven Voting Members and two Youth Advisory Members, to be appointed in accordance with Article VI of the City Charter and Chapter 2.25 CVMC. 1. General Appointments. Three Voting Members shall be nominated and appointed in accordance with the general appointment process specified in CVMC 2.25.052(A). 2. District-Based Appointments. Four Voting Members shall be nominated and appointed in accordance with the district-based appointment process specified in CVMC 2.25.052(C). Members are not required to reside in the corresponding City Council district. 3. Youth Advisory Members. Two Youth Advisory Members shall meet the qualifications specified in CVMC 2.25.030(E) and shall be nominated and appointed in accordance with the general appointment process specified in CVMC 2.25.052(A). Page 711 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Attachment 1 – Redline Version of Municipal Code Updates Page 2 of 3 Veterans Advisory Commission: 2.39.040 Membership. A. The Commission shall consist of seven voting members, to be appointed in accordance with Article VI of the City Charter and Chapter 2.25 CVMC. 1. General Appointments. Three Voting Members shall be nominated and appointed in accordance with the general appointment process specified in CVMC 2.25.052(A). 2. District-Based Appointments. Four Voting Members shall be nominated and appointed in accordance with the district-based appointment process specified in CVMC 2.25.052(C). Members are not required to reside in the corresponding City Council district. Traffic Safety Commission: 2.44.030 Membership. The Traffic Safety Commission shall consist of seven Members who shall be appointed in accordance with Article VI of the City Charter and Chapter 2.25 CVMC. 1. General Appointments. Three Voting Members shall be nominated and appointed in accordance with the general appointment process specified in CVMC 2.25.052(A). 2. District-Based Appointments. Four Voting Members shall be nominated and appointed in accordance with the district-based appointment process specified in CVMC 2.25.052(C). Members must be a resident of the corresponding Council district and must maintain their district residency throughout their tenure. Board of Library Trustees: 2.45.040 Membership. In accordance with Charter Section 605, The the Board of Library Trustees shall consist of five Voting Members appointed by the City Council from the Registered Voters of the City and one Youth Advisory Member, to be appointed in accordance with Article VI of the City Charter and Chapter 2.25 CVMC.. The City Council may change the number of Members comprising the Board by ordinance. 1. General Appointment. One Voting Member shall be nominated and appointed in accordance with the general appointment process specified in CVMC 2.25.052(A). 2. District-Based Appointments. Four Voting Members shall be nominated and appointed in accordance with the district-based appointment process specified in CVMC 2.25.052(C). Members are not required to reside in the corresponding City Council district. Page 712 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Attachment 1 – Redline Version of Municipal Code Updates Page 3 of 3 3. Youth Advisory Member. One Youth Advisory Member shall meet the qualifications specified in CVMC 2.25.030(E) and shall be nominated and appointed in accordance with the general appointment process specified in CVMC 2.25.052(A). Page 713 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda District-Based Nominations for Certain Boards and Commissions April 21, 2026 Page 714 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Purpose of Ordinance •Implements City Council direction from January 20, 2026, and April 14, 2026 •Expands district-based nominations •Applies to select City boards and commissions Page 715 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda New Appointment Process Four seats per commission (one per district) Nominated by corresponding District City Councilmember Appointment by full City Council District residency required for Traffic Safety; no district residency requirement for other affected commissions Page 716 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Applicabili ty and Implementat ion •District residency not required: •Board of Library Trustees •Charter Review Commission •Veterans Advisory Commission •Sustainability Commission •District residency required: •Traffic Safety Commission Applies to: •No impact to current members’ eligibility •Applies to current and future vacancies •Clarifies existing seat reassignment process •Seat alignments for current members will return to City Council for approval Transition Page 717 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Emergency Communications Campaign Update John Cihomsky Chief Communications Officer April 21, 2026 Page 718 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Overview of Existing Notification Tools •Integrated Public Alert and Warning System (IPAWS) •Managed by FEMA, IPAWS is the secure platform cities, counties, states and federal agencies use to send official emergency alerts •The County of San Diego Office of Emergency Services is the Administrator for IPAWS in our county •The City (and other municipalities) have access and are authorized to use IPAWS through established agreements with the County of San Diego. Page 719 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Overview of Existing Notification Tools •Wireless Emergency Alert (WEA) •WEA is a delivery method within IPAWS •Other methods include broadcast alerts on the Emergency Alert System (EAS) and NOAA Weather Radio •WEAs are short, urgent messages sent to mobile phones via cell towers (like an AMBER alert) •Public not required to sign up for WEAs •The City has the authority to issue a WEA when necessary, following all required guidelines •While delivery method is geotargeted, messaging often extends outside the intended area Page 720 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda WEA Message Categories •Specific WEA message categories exist to provide clear direction to recipients: •Shelter: Take shelter in place •Evacuate: Relocate as instructed •Prepare: Make appropriate preparations •Execute: Execute a pre-planned activity •Avoid: Avoid a certain area •Monitor: Attend to information sources for more details Page 721 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda WEA Messaging Message Format •Source, Threat, Location, Guidance/Time, Additional Info Example 1 (90 characters) •CVFD. Wildfire in Rolling Hills Ranch. Evacuate via Telegraph Cyn Rd. See AlertSD.org Example 2 (360 characters) •Chula Vista Fire Dept. has issued an evacuation alert for the Rolling Hills Ranch neighborhood due to an advancing wildfire. Evacuate now to points west via Proctor Valley Rd. or Telegraph Cyn Rd. Evacuation center at Southwestern College at 900 Otay Lakes Rd. For more information, visit Page 722 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda WEA Monitor Message •When an emergency first erupts, an initial WEA can alert the public about the incident and provide direction on how to continually monitor the situation through the City’s website or social media channels •Once the public’s attention is captured, frequent updates can be provided via the above channels •If warranted, additional WEAs would be issued to communicate critical life-safety information and any necessary actionable updates Page 723 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda WEA Monitor Message Example •Note: Typing @thinkchulavista into a browser brings up links to all the City’s social media channels and website Wildfire on Otay Mountain in east Chula Vista. No immediate threat. For updates about this incident search @thinkchulavista or visit www.chulavistaca.gov or AlertSD.org. Page 724 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Delivery Method: Emergency Apps •Genasys Protect –an evacuation mapping app that pushes targeted notifications to specific neighborhoods or an entire region. Residents can subscribe to geographic zones that are most common to their everyday life. The Genasys Protect app allows up to 1,200 characters, providing much more detail than WEA. The Genasys Protect app is used in conjunction with WEAs and AlertSanDiego notifications. •AlertSanDiego –the region’s official opt-in emergency notification system and information hub, used by the City, to send urgent alerts to residents during critical incidents. Residents can choose how to receive their alerts (text, phone, email, etc.). •Messages can be in both English and Spanish Page 725 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Citywide Emergency Alert Awareness Campaign Objectives •Increase resident sign-ups of the Genasys Protect and AlertSanDiego apps so they can receive critical, in-the-moment alerts during an emergency •Educate residents how they can receive frequent informational updates from the City through its social media channels and website during an emergency Tactics •Media Relations / Campaign Launch •Campaign launch on Saturday, May 2, National Wildfire Preparedness Day, at Fire Station 5; incorporate Animal Services / Nat’l Animal Disaster Preparedness Day •Continued opportunities around state and national disaster observances such as The Great American ShakeOut Page 726 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda Awareness Campaign cont’d •Social Media Campaign •Emergency app how-to video •Social media posts •Community Voices Survey •Community Connections e-newsletter •Councilmember newsletters •Special Events •Tabling opportunities at special events, eg, 4thFest, HarborFest, to promote sign-ups Assessment •Conduct annual citywide on NextDoor test three months after campaign launch •Measure increase in app contact records after six months Page 727 of 727 City of Chula Vista - City Council April 21, 2026 Post City Council/Housing Authority Agenda