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HomeMy WebLinkAboutReso 2026-155 RESOLUTION NO. 2026-155 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, DECLARING INTENTION TO ESTABLISH PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2025-1 (VILLAGE 8 EAST) OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, INCLUDING IMPROVEMENT AREAS THEREIN, AND TAKING OTHER ACTIONS RELATING THERETO WHEREAS, the City Council of the City of Chula Vista, California (“City”), at this time desires to initiate proceedings to create community facilities district pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982,” being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (commencing with Section 53311) (“Act”) and the City of Chula Vista Community Facilities District Ordinance No. 2730, as amended, enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (“Ordinance”) (the Act and the Ordinance may be referred to collectively as the “Community Facilities District Law”); and WHEREAS, the proposed community facilities district shall hereinafter be referred to as Community Facilities District No. 2025-1 (Village 8 East) of the City of Chula Vista, County of San Diego, State of California (“District”); and WHEREAS, the City has received a petition from HomeFed Corporation, the owner of certain property within the City (“Owner”), requesting the City Council institute proceedings for the formation of the District pursuant to the Community Facilities District Law; and WHEREAS, the Owner has requested that in establishing the proposed District, the City Council designate two (2) separate improvement areas (each an “Improvement Area” and, collectively, the “Improvement Areas”) over portions of the property to be included therein so that separate series of the bonds of the proposed District may be issued on behalf of each Improvement Area to finance the Facilities (as defined herein) secured by the levy of special taxes within each applicable Improvement Area; and WHEREAS, pursuant to Section 53350 of the California Government Code, the City Council may, by resolution, designate a portion or portions of a community facilities district as one of more Improvement Areas for the financing of, or contribution to the financing of, specified public facilities and which will be subject to the levy and payment of special taxes to pay the principal of and interest on the bonds of the community facilities district which may be issued and sold to finance the design, construction, and acquisition of such public facilities; and WHEREAS, upon the designation of each Improvement Area, all proceedings for purposes of a bond election and for the purpose of levying special taxes for payment of the bonds shall apply only to the applicable Improvement Area; and Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 Resolution No. 2026-155 Page No. 2 WHEREAS, it is, therefore, necessary and desirable that separate Improvement Areas be designated to include specific portions of the property to be included in the proposed District so that the property included in each such Improvement Area will be responsible only for the payment of special taxes which will be levied to pay principal of and interest on the bonds secured by such special taxes of the proposed District which will be issued and sold to finance the design, construction, and acquisition of the Facilities; and WHEREAS, this City Council desires to proceed to adopt its Resolution of Intention to initiate the proceedings to consider the establishment of such District, and the Improvement Areas therein, to set forth the proposed boundaries for such District, to describe the public facilities proposed to be financed by such District, to indicate the proposed rate and apportionment of a special tax sufficient to finance the acquisition or construction of such facilities and the administration of the District and any indebtedness incurred by the District and to fix a time and place for a public hearing on the establishment of such District; and WHEREAS, the Community Facilities District Law provides that the City Council may initiate proceedings to establish a community facilities district only if it has first considered and adopted local goals and policies concerning the use of the Community Facilities District Law; and WHEREAS, the City Council has adopted local goals and policies as required pursuant to the Community Facilities District Law; and WHEREAS, this City Council desires to declare its intention to consider the establishment of such proposed District; and WHEREAS, this City Council further desires to direct, pursuant to the provisions of Section 53321.5 of the Government Code, the preparation of a report to provide more detailed information relating to the proposed District, and the Improvement Areas therein, the proposed facilities to be financed through the District, and estimate of the cost of providing such facilities (the “Community Facilities District Report”). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, is declaring its intention to establish proposed Community Facilities District No. 2025-1 (Village 8 East) of the City of Chula Vista, County of San Diego, State of California, including improvement areas therein, and taking other actions relating thereto under the provisions of the Act. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the foregoing recitals are correct and are incorporated herein by this reference. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that pursuant to Section 53350 of the Act, the City Council proposes to designate the following improvement areas within the proposed District: “Improvement Area No. 1 of Community Facilities District No. 2025-1 (Village 8 East), City of Chula Vista, County of San Diego, State of California” and “Improvement Area No. 2 of Community Facilities District No. 2025-1 (Village 8 East), City of Chula Vista, County of San Diego, State of California.” Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 Resolution No. 2026-155 Page No. 3 BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the boundaries of the proposed District and each Improvement Area are described and shown on the map entitled “Proposed Boundary of Community Facilities District No. 2025-1 (Village 8 East), City of Chula Vista, County of San Diego, State of California,” which is attached hereto as Exhibit “A” and is on file with the City Clerk. Said map is approved and, pursuant to Section 3110 of the California Streets and Highways Code, the City Clerk shall, after conforming with the other requirements of Section 3111 of said Code, record the original of said map in their office, and not later than 15 days prior to the date of the public hearing set forth herein, shall file a copy of said map with the County Recorder of the County of San Diego. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, it is the intention of this City Council to finance the acquisition or construction of certain facilities authorized to be acquired or constructed pursuant to the provisions of the Act, and to pay debt service on outstanding debt in connection with such facilities for each Improvement Area. A general description of the facilities proposed to be authorized to be acquired or constructed for each Improvement Area is set forth in Exhibit “B” attached hereto and incorporated herein by this reference (“Facilities”). BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that, except where funds are otherwise available, a special tax sufficient to finance the acquisition or construction of certain facilities and related incidental expenses including the payment of debt service (“Special Taxes”) secured by the recordation of a continuing lien against all taxable or nonexempt property in each Improvement Area of the proposed District, shall be annually levied within each Improvement Area of the proposed District. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, under no circumstances will Special Taxes levied in each Improvement Area in any fiscal year against any parcel used for private residential purposes be increased as consequence of delinquency or default by the owner of any other parcel or parcels within each Improvement Area of the proposed District by more than 10 percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. A parcel shall be considered “used for private residential purposes” not later than the date on which an occupancy permit or the equivalent for private residential use is issued for such parcel. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, for further particulars as to the rate and method of apportionment of the Special Taxes to be levied on parcels of taxable property in each Improvement Area of the proposed District, reference is made to the attached and incorporated Exhibit “C” and Exhibit “D” (each a “Rate and Method”), which sets forth in sufficient detail the rate and method of apportionment of the Special Taxes for each Improvement Area for the Facilities proposed for each Improvement Area to allow each landowner or resident within each Improvement Area of the proposed District to clearly estimate the maximum amount that such person will have to pay. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, pursuant to Section 53340 of the Act, said Special Taxes of each Improvement Area shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided however, that the District may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent assessor’s parcels as permitted by the Act. Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 Resolution No. 2026-155 Page No. 4 BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, upon recordation of a notice of special tax lien for each Improvement Area pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the Special Taxes shall attach to all non-exempt real property within the applicable Improvement Area of the proposed District, and that lien shall continue in full force and effect. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, the special tax obligation for any parcel may be prepaid and permanently satisfied in whole or in part pursuant to the provisions therefor contained in the Rate and Method. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that, pursuant to Section 53340 of the Act, and except as provided in Section 53317.3 of the Act, properties of entities of the state, federal, and local governments shall be exempt from the levy of Special Taxes. Additionally, and as describe more fully in Section 53340 of the Act, properties receiving a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall be exempt from the Special Tax. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the City Council finds that the Facilities described herein are necessary to meet increased demands placed upon the City as a result of new development occurring within the boundaries of each Improvement Area of the proposed District. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that, pursuant to Section 53314.9 of the Act, the City Council proposes to accept advances of funds or work-in-kind from private persons or private entities and to provide, by resolution, for the use of those funds or that work-in-kind for any authorized purpose, including but not limited to, paying any costs incurred by the City in creating the proposed District, and to enter into an agreement, by resolution, with the person or entity advancing the funds or work-in-kind to repay funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that each Improvement Area of the proposed District shall have its own bonded indebtedness authorization. The maximum aggregate principal amount of bonded indebtedness for each Improvement Area shall be $50,000,000 for Improvement Area No. 1, and $75,000,000 for Improvement Area No. 2. Pursuant to Section 53350 of the California Government Code, all proceedings for purposes of a bond election with respect to the portion of the bonded indebtedness allocated above to each of the proposed Improvement Areas and for the purpose of levying special taxes for the payment of the principal of and interest on the bonds which may be issued and sold to represent such bonded indebtedness and to finance the design, construction, and acquisition of Facilities shall apply only to the applicable Improvement Area. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that pursuant to Section 53329.5 of the Act, the City Council finds that the public interest will not be served by allowing the owners of property within the proposed District to enter into a contract in accordance with subdivision (a) of that section, and that such owners shall not be permitted to elect to perform the work and enter into a written contract with the City for the construction of the Facilities pursuant to said Section 53329.5. Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 Resolution No. 2026-155 Page No. 5 BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that a public hearing on the formation of the proposed District, the designation of the Improvement Areas therein, and the levy of special taxes pursuant to the applicable Rate and Method within each Improvement Area shall be held at a regular meeting at 5:00 p.m. on September 1, 2026, in the Council Chambers located at 276 Fourth Avenue, Chula Vista, California 91910. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the City Clerk shall publish a notice of the time and place of said hearing as required by Section 53322 of the Act, and may also give notice of the time and place of said hearing by first-class mail to each registered voter and to each landowner within the boundaries of the Improvement Areas of the proposed District, as prescribed by Section 53322.4 of said Code. Said notice shall be published at least seven (7) days and mailed at least fifteen (15) days before the date of the hearing and shall contain the information required by said Section 53322. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the officers of the City who will be responsible for providing the proposed Facilities to be provided within and financed by the proposed District, if it is established, shall study the proposed District, and, at or before the time of said hearing, file a report or reports with the City Council containing a brief description of the Facilities by type which will in their opinion be required to adequately meet the needs of the proposed District and their estimate of the fair and reasonable cost of providing the Facilities and the related incidental expenses to be incurred in connection therewith. All such reports shall be made a part of the record of the hearing to be held pursuant to this Resolution. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the voting procedures to be followed within each Improvement Area shall be pursuant to Section 53326 of the Act and pursuant to the applicable provisions of the California Election Code. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the City Council finds this Resolution is not subject to the California Environmental Quality Act (“CEQA”) in that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because the proposed activity consists of a governmental fiscal/administrative activity which does 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. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that if any provision of this Resolution or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions or applications, and to this end, the provisions of this Resolution are declared to be severable. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that this Resolution shall become effective immediately. Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 Resolution No. 2026-155 Page No. 6 Presented by Approved as to form by Roy Sapa’u Marco A. Verdugo Deputy City Manager/Director of Development City Attorney Services PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 28th day of July 2026, by the following vote: AYES: Councilmembers: Chavez, Fernandez, Inzunza, Preciado, and McCann NAYS: Councilmembers: None ABSENT: Councilmembers: None John McCann, Mayor ATTEST: 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 Resolution No. 2026-155 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 28th day of July 2026. Executed this 28th day of July 2026. Kerry K. Bigelow, MMC, City Clerk Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 60297.00089\45137212.2 EXHIBIT “A” Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 60297.00089\45137212.2 EXHIBIT “B” The public facilities (the “Facilities”) authorized to be financed by the levy of special taxes within the “District”) include but are not limited to: Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 EXHIBIT “C” RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2025-1 (VILLAGE 8 EAST) IMPROVEMENT AREA NO. 1 OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA [Attached] Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 C-1 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2025-1 (VILLAGE 8 EAST) IMPROVEMENT AREA 1 OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA A Special Tax shall be levied on all Taxable Property within the boundaries of Community Facilities District No. 2025-1 (Village 8 East) Improvement Area 1 (“CFD No. 2025-1 IA 1” and “CFD”) and collected each Fiscal Year commencing in Fiscal Year 2026-27, in an amount determined by the CFD Administrator through the application of the procedures described below. All the real property within CFD No. 2025- 1 IA 1, unless exempted by law or by the provisions of Section 5 hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. 1. DEFINITIONS The terms hereinafter set forth have the following meanings: “Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Map or other parcel map recorded at the County Recorder’s Office. An Acre means 43,560 square feet of land. If the preceding maps for a land area are not available, the Acreage of such land area shall be determined by the City Engineer. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California, as amended. “Administrative Expenses” means the following actual or reasonably estimated costs related to the administration of CFD No. 2025-1 IA 1 including, but not limited to: the costs of preparing and computing the Annual Special Tax (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City, the County or otherwise); the costs of remitting the Special Taxes to the Fiscal Agent; the costs of the Fiscal Agent (including its legal counsel) in the discharge of the duties required of it under the Fiscal Agent Agreement; the costs to the City, CFD No. 2025-1 IA 1, or any designee thereof complying with arbitrage rebate requirements, including without limitation rebate liability costs and periodic rebate calculations; the costs to the City, CFD No. 2025-1 IA 1, or any designee thereof complying with disclosure or reporting requirements of the City or CFD No. 2025-1 IA 1, associated with applicable federal and State laws (including CDIAC); the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs to the City, CFD No. 2025-1 IA 1, or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses. Administrative Expenses shall also include (1) amounts for Special Tax delinquency monitoring and (2) the estimated amounts or amounts advanced by the City or CFD No. 2025-1 IA 1, if any, for any other administrative purposes of CFD No. 2025-1 IA 1, including attorney’s fees and other costs related to commencing and pursuing any foreclosure of delinquent Special Taxes. “Affordable Residential Property” means all Parcels of Developed Property that consists of a home or Residential Unit in the CFD that has legally recorded affordability restrictions, including but not limited to deed restrictions, regulatory agreements, or other recorded instruments that limit rent for lower‐ income households. The determination of whether an Assessor’s Parcel qualifies as Affordable Residential Property shall be made by the CFD Administrator based on a review of applicable recorded Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 documents and any supporting information provided to the City. “Annual Special Tax” means the Special Tax actually levied in any Fiscal Year on any Assessor’s Parcel. “Assessor” means the Assessor of the County of San Diego. “Assessor’s Parcel” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number. “Assessor’s Parcel Map” means an official map of the Assessor designating parcels by Assessor’s Parcel Number. “Assessor’s Parcel Number” means the number assigned to a parcel designated by the Assessor for purposes of identification. “Assigned Special Tax” means the Special Tax of that name described in Section 3.A below. “Backup Special Tax” means the Special Tax of that name described in Section 3.B below. “Bonds” means any bonds or other debt of CFD No. 2025-1 IA 1 issued or incurred whether in one or more series, secured by the levy of Special Taxes. “Boundary Map” means a recorded map which indicates the boundaries of CFD No. 2025-1 IA 1. “Building Permit” means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times maximum annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses. “Building Square Footage” means the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, or similar area. The determination of Building Square Footage shall be made by the CFD Administrator by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or by reference to appropriate records kept by the City or County. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31. “CFD Administrator” means an authorized representative of the City, or designee thereof, responsible for determining the Special Tax Requirement, for preparing the Annual Special Tax roll and/or calculating the Backup Special Tax. “CFD No. 2025-1 IA 1” and “CFD” means the City of Chula Vista Community Facilities District No. 2025- 1 Improvement Area 1. “City” means the City of Chula Vista, California. “City Council” means the City Council of the City acting as the legislative body of CFD No. 2025-1 IA 1 under the Act. Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 C-3 “County” means the County of San Diego, California. “Debt Service” means for each Fiscal Year, the total amount of principal and interest payable on any Outstanding Bonds during the Calendar Year commencing on January 1 of such Fiscal Year. “Developed Property” means for each Fiscal Year, all Taxable Property for which a Building Permit was issued prior to March 1 of the previous Fiscal Year. An Assessor’s Parcel classified as Developed Property but for which the Building Permit that caused such Assessor’s Parcel to be classified as Developed Property has been cancelled and/or voided prior to the Fiscal Year for which Special Taxes are being levied shall be reclassified as Undeveloped Property, provided that the levy of the Annual Special Tax after such reclassification shall not be less than 1.1 times the annual Debt Service on all Outstanding Bonds. If Bonds have not been issued, an Assessor’s Parcel classified as Developed Property for which such a Building Permit has been cancelled and/or voided shall be reclassified as Undeveloped Property. “Exempt Property” means for each Fiscal Year, all Assessor’s Parcels designated as being exempt from Special Taxes pursuant to Section 5 below. “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the period starting on July 1 and ending the following June 30. “Fiscal Agent” means the fiscal agent, trustee, or paying agent under the Fiscal Agent Agreement. “Fiscal Agent Agreement” means the agreement, indenture, resolution, or other instrument pursuant to which Bonds are issued, as modified, amended, and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Class” means any of the classes listed in Tables 1-4 set forth in Section 3A below. Note: Land Uses Class is not in reference to a property’s zoning designation. “Lot(s)” means an individual legal lot created by a Final Map for which a Building Permit for residential construction has been or could be issued. Notwithstanding the foregoing, in the case of an individual legal lot created by such a Final Map upon which Condominiums are entitled to be developed, the number of Lots allocable to such legal lot for purposes of calculating the Backup Special Tax applicable to such Final Map shall equal the number of Condominiums which are permitted to be constructed on such legal lot as shown on such Final Map. “Master Developer” means Home Fed Village 8E, LLC, a Delaware limited liability company or its successors or assignees. “Maximum Special Tax” means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Sections 3.C. and 3.D. below, which may be levied in a given Fiscal Year on such Assessor’s Parcel of Taxable Property. “Multifamily Residential Property” means all Parcels of Developed Property that consists of a building or buildings comprised of Residential Units available for rent by the general public, not for sale to an end user, and under common management. Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 “Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing one or more non-residential units or structures, including, but not limited to commercial and industrial uses. “Outstanding Bonds” means all Bonds which are deemed to be outstanding under the Fiscal Agent Agreement. “Prepayment Amount” means the amount required to prepay the Special Tax Obligation in full for an Assessor’s Parcel as described in Section 8.A below. “Property Owner Association Property” means any Assessor’s Parcel within the boundaries of CFD No. 2025-1 IA 1 owned in fee by a property owner association, including any master or sub-association. “Proportionately” or “Proportionate” means for Developed Property, that the ratio of the actual Special Tax levy to the applicable Assigned Special Tax or Backup Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property. “Proportionately” may similarly be applied to other categories of Taxable Property as listed in Section 3 below. “Public Property” means, for each Fiscal Year, any property within the boundaries of CFD No. 2025 -1 IA 1, which is owned by, or irrevocably offered for dedication to the federal government, the State of California, the County, the City or any other public agency as of June 30 of the prior Fiscal Year; provided however that any property owned by a public agency and leased to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by or irrevocably offered for dedication to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. “Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit(s) has been issued for the purpose of constructing one or more Residential Units. “Residential Unit” means each separate residential dwelling unit that comprises an independent facility capable of conveyance (sale) or rental, separate from adjacent residential dwelling units, whether a Single Family Property, Multifamily Residential Property, or Affordable Residential Property. “Single Family Residential Property” means all Parcels of Developed Property initially available for sale that consists of a residential dwelling unit designed for occupancy by a single household for which a Building Permit has been issued for the construction of a Residential Unit excluding Multifamily Residential Property or Affordable Residential Property. “Special Tax” means any special tax levied within CFD No. 2025-1 IA 1 pursuant to the Act and this Rate and Method of Apportionment of Special Tax. “Special Tax Obligation” means the total obligation of an Assessor’s Parcel of Taxable Property to pay the Special Tax for the remaining life of CFD No. 2025-1 IA 1. “Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay regularly scheduled Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on the Outstanding Bonds; (iii) Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 C-5 pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; and (v) pay directly for eligible development impact fees and the acquisition or construction of eligible facilities, provided the inclusion of such amount does not increase the levy of the Special Tax on Undeveloped Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the delinquency rate for Special Taxes in the previous Fiscal Year; less (vii) a credit for funds available to reduce the Annual Special Tax levy, as determined by the CFD Administrator pursuant to the Fiscal Agent Agreement. “State” means the State of California. “Taxable Property” means the Assessor’s Parcels within the boundaries of CFD, which are not exempt from the levy of the Special Tax pursuant to law or Section 5 below. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property. “Zone 1” means a geographic area consisting of a portion of Otay Ranch Village 8 East Planning Area R- 1 and R-2 in Attachment A, attached hereto. “Zone 2” means a geographic area consisting of a portion of Otay Ranch Village 8 East Planning Area R- 1 and R-2 as shown in Attachment A, attached hereto. “Zone 3” means a geographic area consisting of Otay Ranch Village 8 East Planning Area R-3 and R-4 as shown in Attachment A, attached hereto. “Zone 4” means a geographic are consisting of Otay Ranch Village 8 East Planning Area VC-1 and VC-2 and VC-3 and VC-4/5 as depicted in Attachment A, attached hereto. “Zones” means, collectively, Zone 1, Zone 2, Zone 3, and Zone 4. 2. LAND USE CLASSIFICATION Each Fiscal Year, beginning with Fiscal Year 2026-27, each Assessor’s Parcel within CFD No. 2025-1 IA 1 shall be classified as Taxable Property or Exempt Property. In addition, all Taxable Property shall further be classified as Developed Property or Undeveloped Property, and all such Taxable Property shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment of Special Tax determined pursuant to Sections 3 and 4 below. Furthermore, each Assessor’s Parcel of Developed Property shall be classified according to its applicable Land Use Class and Single Family Residential Property shall be further classified based on its Building Square Footage. In the event a Building Permit is issued for one or more parcels of Residential Property prior to March 1 of the previous Fiscal Year and an Assessor’s Parcel Number has not yet been assigned to each such Residential Property for the current Fiscal Year, the applicable Assessor’s Parcel may be classified as both Developed Property and Undeveloped Property. In such case, the Special Taxes levied on such Assessor’s Parcel shall be the sum of the amount derived from the following (i) applying the Assigned Special Tax applicable to each Residential Property for which a Building Permit was issued prior to March 1 of the previous Fiscal Year and (ii) levying the acreage allocable to such actual or planned Residential Property for which a Building Permit has not been issued prior to March 1 of the previous Fiscal Year as Undeveloped Property; the allocable acreage shall be computed on a pro-rata basis based on the relative number of remaining Residential Property to the total number of Residential Property entitled to be developed on such Assessor’s Parcel. The total number of parcels of Residential Property Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 entitled to be developed on the applicable Assessor’s Parcel shall be determined from the recorded final map, condominium plan, applicable site plan, plot plan, or other appropriate records kept by the City as reasonably determined by the CFD Administrator. 3. SPECIAL TAX RATES A. Assigned Special Tax for Developed Property The Assigned Special Tax applicable to an Assessor’s Parcel classified as Developed Property commencing Fiscal Year 2026-27 shall be determined pursuant to Tables 1-4 below. Table 1 – Zone 1 Assigned Special Tax Rates for Developed Property Table 2 – Zone 2 Assigned Special Tax Rates for Developed Property Land Use Class Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit) 1 Single Family Residential Property <= 1,400 $3,021 2 Single Family Residential Property 1,401 - 1,700 $3,112 3 Single Family Residential Property 1,701 - 2,000 $3,374 4 Single Family Residential Property >= 2,001 $4,181 5 Non-Residential Property n/a $0 Land Use Class Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit) 1 Single Family Residential Property <= 1,600 $3,240 2 Single Family Residential Property >= 1,601 $3,287 3 Non-Residential Property n/a $0 Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 C-7 Table 3 – Zone 3 Assigned Special Tax Rates for Developed Property Table 4 – Zone 4 Assigned Special Tax Rates for Developed Property On each July 1 commencing July 1, 2027, through July 1, 2037, the Assigned Special Tax for Developed Property within each Zone shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year. B. Backup Special Tax for Developed Property When a Final Map or a condominium plan is recorded within CFD No. 2025-1 IA 1, the Backup Special Tax for Assessor’s Parcels of Developed Property classified as Residential or Non- Residential Property shall be determined as follows for each Zone: For each Assessor’s Parcel of Residential and Non-Residential Property or for each Assessor’s Parcel of Undeveloped Property to be classified as Residential and Non-Residential Property upon its development within the Final Map area of CFD No. 2025-1 IA 1, the Backup Special Tax for Fiscal Year 2026-27 shall be the rate per Lot calculated according to the following formula: Land Use Class Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit) 1 Single Family Residential Property <= 1,500 $3,150 2 Single Family Residential Property 1,501 - 1,715 $3,323 3 Single Family Residential Property 1,716 - 1,930 $3,743 4 Single Family Residential Property 1,931 - 2,145 $3,925 5 Single Family Residential Property 2,146 - 2,360 $4,276 6 Single Family Residential Property 2,361 - 2,575 $4,445 7 Single Family Residential Property >= 2,576 $4,815 8 Non-Residential Property n/a $0 Land Use Class Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit) 1 Affordable Residential Property n/a $40 2 Multifamily Residential Property n/a $40 3 Non-Residential Property n/a $40 Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 Zone 1 B = ($74,075 x A) / L Zone 2 B = ($82,519 x A) / L Zone 3 B = ($62,038 x A) / L Zone 4 B = ($1,211 x A) / L The terms have the following meanings: B = Backup Special Tax per Lot A = Acreage classified or to be classified as Residential and Non-Residential Property in such Final Map. The land area applicable to a Taxable Property shall be computed from the Acreage of the Lot on which the Residential and Non-Residential Property is located, with the Acreage for such Lot allocated equally among the Taxable Properties located or to be located on such Lot. L = For a Final Map, the number of Lots which are classified or to be classified as Residential and Non-Residential Property. Notwithstanding the foregoing, if Assessor’s Parcels of Residential Property or Undeveloped Property for which the Backup Special Tax has been determined for a specific Zone are subsequently changed or modified by recordation of a new or amended Final Map, then the Backup Special Tax applicable to such Assessor’s Parcels shall be recalculated to equal the total amount of Backup Special Tax that would have been generated if such change did not take place. On each July 1 commencing July 1, 2027, through July 1, 2037, the Backup Special Tax applicable to each Assessor’s Parcel of Residential within each Zone shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year. C. Maximum Special Tax for Developed Property Each Fiscal Year, the Maximum Special Tax for an Assessor’s Parcel of Developed Property within each Zone shall be the greater of the applicable Assigned Special Tax or Backup Special Tax for the appropriate Zone. D. Maximum Special Tax for Undeveloped Property The Maximum Special Tax for Undeveloped Property commencing in Fiscal Year 2026 -27 shall be as follows for each Zone. Zone 1 $74,075 per Acre Zone 2 $82,519 per Acre Zone 3 $62,038 per Acre Zone 4 $1,211 per Acre On each July 1 commencing July 1, 2027, through July 1, 2037, the Maximum Special Tax applicable to each Assessor’s Parcel of Undeveloped Property within each Zone shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year. E. Multiple Land Use Classes If an Assessor’s Parcel may contain more than one Land Use Class, the Maximum Special Tax Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 C-9 shall be the sum of the Maximum Special Taxes applicable to each Land Use Class present on the Parcel, as reasonably determined by the CFD Administrator. F. Special Tax Reduction prior to issuance of Bonds Prior to the issuance of the first series of Bonds, the Assigned Special Tax, Backup Special Tax, and Maximum Special Tax (collectively the “Special Tax Rates”) on Taxable Property may be reduced in accordance with, and subject to the conditions set forth in this paragraph. Upon the City’s receipt of a written request from the Master Developer and the CFD Administrator, the Special Tax Rates on Taxable Property may be reduced to a level which will provide not less than one hundred ten percent (110%) of the estimated debt service, net of administrative expenses, with respect to the amount of Bonds requested to be issued in such written request. If it is reasonably determined by the CFD Administrator that the total effective tax rate on Residential Property exceeds 2%, the Special Tax Rates shall be reduced to the amount necessary to satisfy the maximum allowable effective tax rate requirement on Residential and Non- Residential Property with the written consent of the CFD Administrator. It shall not be required that reductions among each Building Square Footage range of Residential Property or Acres of Non-Residential Property be proportional. Additionally, the CFD Public Facilities Costs amount in Section 8 shall be reduced commensurate with any reductions to the Special Tax Rates pursuant to this paragraph, as reasonably determined by the CFD Administrator. A certificate in the form attached hereto as Attachment “B” shall be used for purposes of evidencing the required written consent and effectuating the reduction to the Special Tax Rates. The reductions permitted pursuant to this paragraph shall be reflected in an amended Notice of Special Tax Lien which the City shall cause to be recorded with the County. Once the first series of bonds is issued for CFD No. 2025-1 IA 1, this paragraph 3.F shall become void. 4. METHOD OF APPORTIONMENT For each Fiscal Year commencing Fiscal Year 2026-27, the CFD Administrator shall determine the Special Tax Requirement and levy the Special Tax on all Taxable Property in accordance with the following steps for each Zone: Step 1: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement. Step 2: If additional monies are needed to satisfy the Special Tax Requirement after Step 1 has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax for Undeveloped Property as needed to satisfy the Special Tax Requirement. Step 3: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be increased Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the Maximum Special Tax for Developed Property as needed to satisfy the Special Tax Requirement. Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a result of a delinquency or default in the payment of the Special Tax Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 applicable to any other Assessor’s Parcel within CFD No. 2025-1 IA 1 by more than ten percent (10%) above what would have been levied in the absence of such delinquencies or defaults. 5. EXEMPTIONS The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels of Public Property, (ii) Assessor’s Parcels of Property Owner Association Property, (iii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization and (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, provided that no such classification would reduce the sum of all Taxable Property in CFD No. 2025-1 IA 1 to less than 12.75 Acres in Zone 1 and 3.95 Acres in Zone 2 and 18.01 Acres for Zone 3 and 34.89 Acres for Zone 4. Assessor’s Parcels which cannot be classified as Exempt Property because such classification would reduce the sum of all Taxable Property in CFD No. 2025-1 IA 1 to less than the specified acreages per Zone described in the previous sentence, shall be classified as Taxable Property and will continue to be subject to the CFD No. 2025-1 IA 1 Special Taxes accordingly. Tax exempt status for the purpose of this section will be assigned by the CFD Administrator in the chronological order in which property becomes eligible for classification as Exempt Property. If the use of an Assessor’s Parcel of Exempt Property changes so that such Assessor’s Parcel is no longer classified as one of the uses set forth above that would make such Assessor’s Parcel eligible to be classified as Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property and subject to the applicable Special Taxes then in effect. 6. APPEALS The CFD Administrator shall have primary responsibility for the interpretation and application of this RMA. Any property owner who pays the Special Tax and claims the amount of the Special Tax levied on his or her Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such error not later than twelve (12) months after first having paid the first installment of the Special Tax that is disputed. If following such consultation, the CFD Administrator determines that an error has occurred, then the CFD Administrator shall take any of the following actions, in order of priority, to correct the error: (i) Amend the Special Tax levy on the property owner’s Assessor’s Parcel(s) for the current Fiscal Year prior to the payment date, (ii) Require the CFD to reimburse the property owner for the amount of the overpayment to the extent of available CFD funds, or (iii) Grant a credit against, eliminate or reduce the future Special Taxes on the property owner’s Assessor’s Parcel(s) in the amount of the overpayment. If following such consultation and action by the CFD Administrator the property owner believes such error still exists, such person may file a written notice of appeal with the City Manager. Upon receipt of such notice, the City Manager or designee may establish such procedures as deemed necessary to undertake the review of any such appeal. If the City Manager or designee determines an error still exists, the CFD Administrator shall take any of the actions described as (i), (ii) and (iii) above, in order of priority, to correct the error. Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 C-11 The City Manager or the designee thereof shall interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguities and making determinations relative to the administration of the Special Tax and any property owner appeals. The decision of the City Manager or designee shall be final and binding to all people. 7. COLLECTION OF SPECIAL TAXES Collection of the Annual Special Tax shall be made by the County in the same manner as ordinary ad valorem property taxes are collected and the Annual Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taxes; provided, however, that the City Council may provide for (i) other means of collecting the Special Tax, including direct billings thereof to the property owners; and (ii) judicial foreclosure of delinquent Annual Special Taxes. 8. PREPAYMENT OF SPECIAL TAX OBLIGATION A. Prepayment in Full Property owners may prepay and permanently satisfy the Special Tax Obligation by a cash settlement with the City as permitted under Government Code Section 53344. The following definitions apply to this Section 8: “CFD Public Facilities Costs” means $34,000,000 or such lower amount as shall be determined by the CFD Administrator as an amount sufficient to pay development impact fees and acquire or construct the facilities to be financed under the Act and financing program for CFD No. 2025- 1 IA 1. “Improvement Fund” means the fund (regardless of its name) established pursuant to the Fiscal Agent Agreement to hold funds, which are currently available for expenditure to acquire or construct the facilities or pay development impact fees authorized to be funded by CFD No. 2025-1 IA 1. “Future Facilities Costs” means the CFD Public Facilities Costs minus (i) costs previously paid from the Improvement Fund to acquire or construct the facilities or pay for development impact fees, (ii) monies currently on deposit in the Improvement Fund, and (iii) monies currently on deposit in an escrow or other designated fund that are expected to be available to finance CFD Public Facilities Costs. “Outstanding Bonds” means all Previously Issued Bonds, which remain outstanding as of the first interest and/or principal payment date following the current Fiscal Year excluding Bonds to be redeemed at a later date with proceeds of prior Special Tax prepayments. “Previously Issued Bonds” means all Bonds that have been issued prior to the date of prepayment. The Special Tax Obligation applicable to an Assessor’s Parcel of Developed Property, or Undeveloped Property for which a Building Permit has been issued may be prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor’s Parcel only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel eligible to prepay the Special Tax Obligation shall provide the CFD Administrator with written notice of intent to prepay and designate or identify the company or agency that will be acting as the escrow agent, if any. The Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 CFD Administrator shall provide the owner with a statement of the Prepayment Amount for such Assessor’s Parcel within thirty (30) days of the request and may charge a reasonable fee for providing this service. Prepayment must be made at least 75 days prior to any redemption date for the Bonds to be redeemed with the proceeds of such prepaid Special Taxes unless a shorter period is acceptable to the Fiscal Agent and the City. The Prepayment Amount (defined below) shall be calculated for each applicable Assessor’s Parcel or group of Assessor’s Parcels as summarized below (capitalized terms as defined below): • Bond Redemption Amount plus Redemption Premium • plus, Future Facilities Costs Prepayment Amount plus Defeasance Amount • plus, Prepayment Administrative Fees and Expenses less Reserve Fund Credit • less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined in Step 14 below) shall be calculated as follows: Step No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel. 2. For Assessor’s Parcels of Developed Property, determine the Maximum Special Tax. For Assessor’s Parcels of Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has already been issued for that Assessor’s Parcel. 3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the total expected Maximum Special Tax revenue for CFD No. 2025-1 IA 1 assuming all Building Permits have been issued (build-out) within CFD No. 2025-1 IA 1, excluding any Assessor’s Parcels for which the Special Tax Obligation has been previously prepaid. 4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid for all applicable Assessor’s Parcels (the “Bond Redemption Amount”). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (expressed as a percentage), if any, on the Outstanding Bonds to be redeemed at the first available call date (the “Redemption Premium”). 6. Compute the Future Facilities Costs. 7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the “Future Facilities Prepayment Amount”). 8. Calculate the administrative fees and expenses of CFD No. 2025-1 IA 1, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding Bonds to be redeemed with the prepayment, the cost of any escrow agreement, verification report fees, fees of bond counsel or fiscal agent counsel, and the costs of recording any notices to evidence the prepayment and the redemption Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 C-13 (the “Prepayment Administrative Fees”). 9. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the expected redemption date for the Outstanding Bonds which, depending on the Fiscal Agent Agreement, may be as early as the next interest payment date. 10. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Future Facilities Prepayment Amount and the Prepayment Administrative Fees from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. 11. Subtract the amount computed in paragraph 10 from the amount computed in paragraph 9 (the “Defeasance Amount”). 12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the reserve requirement (as defined in the Fiscal Agent Agreement) on the prepayment calculation date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”). No Reserve Fund Credit shall be granted if, after the Prepayment Amount is calculated, reserve funds are below 100% of the reserve requirement after considering such prepayment. 13. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 3 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the “Capitalized Interest Credit”). 14. The amount to prepay the Special Tax Obligation is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 8, and 11, less the amounts computed pursuant to paragraphs 12 and 13 (the “Prepayment Amount”). 15. From the Prepayment Amount, the sum of the amounts computed pursuant to paragraphs 4, 5, and 11, less the amounts computed pursuant to paragraphs 12 and 13 shall be deposited into the appropriate fund as established under the Fiscal Agent Agreement and be used to retire Outstanding Bonds or make Debt Service payments. The amount computed pursuant to paragraph 7 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 8 shall be retained by CFD No. 2025-1 IA 1. The Prepayment Amount may be sufficient to redeem an amount other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Fiscal Agent Agreement to redeem Bonds to be used with the next prepayment of Bonds. The CFD Administrator will confirm that all previously levied Special Taxes have been paid in full. With respect to any Assessor’s Parcel for which the Special Tax Obligation is prepaid in full, once the CFD Administrator has confirmed that all previously levied Special Taxes have been paid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Special Tax Obligation and the release of the Special Tax lien on such Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 Assessor’s Parcel, and the obligation of the owner of such Assessor’s Parcel to pay the Special Tax shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year. B. Partial Prepayment The Special Tax on an Assessor’s Parcel of Developed Property or Undeveloped Property for which a Building Permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section 8.A.; except that a partial prepayment shall be calculated according to the following formula: PP = (PE-A) x F+A These terms have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section 8.A F = the percentage by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax Obligation A = the Prepayment Administrative Fees and Expenses from Section 8.A The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax Obligation, (ii) the percentage by which the Special Tax Obligation shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax Obligation for an Assessor’s Parcel within thirty (30) days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor’s Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Section 8.A., and (ii) indicate in the records of CFD No. 2025-1 IA 1 that there has been a partial prepayment of the Special Tax Obligation and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel. Notwithstanding the foregoing, no partial prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed partial prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year. 9. TERM OF SPECIAL TAX The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement, but in any event not after Fiscal Year 2076-77. The Special Tax will cease to be levied in an earlier Fiscal Year if the Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 C-15 CFD Administrator has determined that all required interest and principal payments on the Bonds have been paid, no delinquent Special Taxes remain uncollected, and the City has covenanted that it will not issue any more Bonds (other than refunding Bonds) to be supported by Special Taxes levied under this Rate and Method of Apportionment. Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 Attachment A ATTACHMENT A – Boundary Map Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 Attachment A Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 60297.00089\45137212.2 Attachment B-1 ATTACHMENT B CERTIFICATE TO AMEND THE SPECIAL TAX COMMUNITY FACILITIES DISTRICT NO. 2025-1 IA 1 OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO STATE OF CALIFORNIA TAX REDUCTION CERTIFICATE 1. The undersigned property owners hereby request modification of the following information in the Rate and Method of Apportionment of Special Tax (the “RMA”) for Community Facilities District No. 2025-1 IA 1 of the City of Chula Vista (the “CFD”). 2. Pursuant to Section 3 of the Rate and Method of Apportionment, as attached to the Notice of Special Tax Lien, recorded in the Official Records of the County of San Diego as Instrument No. XXXXXX on MM/DD/YYYY, the County of San Diego (the “County”) hereby reduces the Assigned Special Tax for Developed Property within the CFD as set forth in Tables 1-4 of the RMA. 3. The information in Tables 1-4 below, relating to the Assigned Special Tax for Developed Property within CFD No. 2025-1 IA 1 shall be amended and restated in full as follows: Table 1 – Zone 1 Assigned Special Tax for Developed Property Land Use Class Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit) 1 Single Family Residential Property <= 1,400 $ 2 Single Family Residential Property 1,401 - 1,700 $ 3 Single Family Residential Property 1,701 - 2,000 $ 4 Single Family Residential Property >= 2,001 $ 5 Non-Residential Property n/a $ Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 Table 2 – Zone 2 Assigned Special Tax for Developed Property Table 3 – Zone 3 Assigned Special Tax for Developed Property Table 4 – Zone 4 Assigned Special Tax for Developed Property 4. The calculation of the Backup Special Tax for Assessor’s Parcels of Developed Property within CFD Land Use Class Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit) 1 Single Family Residential Property <= 1,600 $ 2 Single Family Residential Property >= 1,601 $ 3 Non-Residential Property n/a $ Land Use Class Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit) 1 Single Family Residential Property <= 1,500 $ 2 Single Family Residential Property 1,501 - 1,715 $ 3 Single Family Residential Property 1,716 - 1,930 $ 4 Single Family Residential Property 1,931 - 2,145 $ 5 Single Family Residential Property 2,146 - 2,360 $ 6 Single Family Residential Property 2,361 - 2,575 $ 7 Single Family Residential Property >= 2,576 $ 8 Non-Residential Property n/a $ Land Use Class Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit) 1 Affordable Residential Property n/a $ 2 Multifamily Residential Property n/a $ 3 Non-Residential Property n/a $ Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 60297.00089\45137212.2 Attachment B-3 No. 2025-1 IA 1 classified as Residential Property and Non-Residential Property shall be amended as follows: For each Assessor’s Parcel of Residential Property and Non-Residential Property or for each Assessor’s Parcel of Undeveloped Property to be classified as Residential Property and Non- Residential Property upon its development within the Final Map area of CFD No. 2025-1 IA 1, the Backup Special Tax shall be the rate per Lot calculated according to the following formula: Zone 1: B = (R x A) / L Zone 2: B = (R x A) / L Zone 3: B = (R x A) / L Zone 4: B = (R x A) / L The terms have the following meanings: B = Backup Special Tax per Lot A = Acreage classified or to be classified as Residential Property and Non-Residential Property in such Final Map. The land area applicable to a Residential Property and Non-Residential Property shall be computed from the Acreage of the Lot on which the Residential Property and Non-Residential Property are located, with the Acreage for such Lot allocated equally among all the Residential Property and Non-Residential Property located or to be located on such Lot. L = For a Final Map, the number of Lots which are classified or to be classified as Residential Property or Non-Residential Property R = Backup Special Tax Rate per Acre 5. On each July 1 commencing July 1, 2027, through July 1, 2037, the Assigned Special Tax Rates in Tables 1-4 and the Backup Special Tax applicable to each Assessor’s Parcel of Residential Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. 6. Section 3 of the RMA may only be modified prior to the issuance of Bonds. 7. Upon execution of the certificate by the City and the CFD, the City shall cause an amended Notice of Special Tax Lien for the CFD to be recorded reflecting the modifications set forth herein. I hereby declare under penalty of perjury that the above representations are true and correct. Property Owner: By: _____________________________________________ Date: ________________________ Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 By execution hereof, the undersigned acknowledges, on behalf of the City of Chula Vista and CFD No. 2025-1 IA 1 receipt of this Certificate and modification of the RMA as set forth in this Certificate. City of Chula Vista By: _____________________________________________ Date: ________________________ CFD Administrator Community Facilities District No. 2025-1 IA 1 of the City of Chula Vista By: _____________________________________________ Date: ________________________ CFD Administrator Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 EXHIBIT “D” RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2025-1 (VILLAGE 8 EAST) IMPROVEMENT AREA NO. 2 OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA [Attached] Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 D-1 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2025-1 (VILLAGE 8 EAST) IMPROVEMENT AREA 2 OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA A Special Tax shall be levied on all Taxable Property within the boundaries of Community Facilities District No. 2025-1 (Village 8 East) Improvement Area 2 (“CFD No. 2025-1 IA 2” and “CFD”) and collected each Fiscal Year commencing in Fiscal Year 2026-27, in an amount determined by the CFD Administrator through the application of the procedures described below. All the real property within CFD No. 2025- 1 IA 2, unless exempted by law or by the provisions of Section 5 hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. 1. DEFINITIONS The terms hereinafter set forth have the following meanings: “Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Map or other parcel map recorded at the County Recorder’s Office. An Acre means 43,560 square feet of land. If the preceding maps for a land area are not available, the Acreage of such land area shall be determined by the City Engineer. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California, as amended. “Administrative Expenses” means the following actual or reasonably estimated costs related to the administration of CFD No. 2025-1 IA 2 including, but not limited to: the costs of preparing and computing the Annual Special Tax (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City, the County or otherwise); the costs of remitting the Special Taxes to the Fiscal Agent; the costs of the Fiscal Agent (including its legal counsel) in the discharge of the duties required of it under the Fiscal Agent Agreement; the costs to the City, CFD No. 2025-1 IA 2 or any designee thereof complying with arbitrage rebate requirements, including without limitation rebate liability costs and periodic rebate calculations; the costs to the City, CFD No. 2025-1 IA 2, or any designee thereof complying with disclosure or reporting requirements of the City or CFD No. 2025-1 IA 2, associated with applicable federal and State laws (including CDIAC); the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs to the City, CFD No. 2025-1 IA 2, or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses. Administrative Expenses shall also include (1) amounts for Special Tax delinquency monitoring and (2) the estimated amounts or amounts advanced by the City or CFD No. 2025-1 IA 2, if any, for any other administrative purposes of CFD No. 2025-1 IA 2, including attorney’s fees and other costs related to commencing and pursuing any foreclosure of delinquent Special Taxes. “Affordable Residential Property” means all Parcels of Developed Property that consists of a home or residential unit in the CFD that has legally recorded affordability restrictions, including but not limited to deed restrictions, regulatory agreements, or other recorded instruments that limit rent for lower‐ income households. The determination of whether a Parcel qualifies as Affordable Residential Property shall be made by the CFD Administrator based on a review of applicable recorded documents and any supporting information provided to the City. Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 “Annual Special Tax” means the Special Tax actually levied in any Fiscal Year on any Assessor’s Parcel. “Assessor” means the Assessor of the County of San Diego. “Assessor’s Parcel” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number. “Assessor’s Parcel Map” means an official map of the Assessor designating parcels by Assessor’s Parcel Number. “Assessor’s Parcel Number” means the number assigned to a parcel designated by the Assessor for purposes of identification. “Assigned Special Tax” means the Special Tax of that name described in Section 3.A below. “Backup Special Tax” means the Special Tax of that name described in Section 3.B below. “Bonds” means any bonds or other debt of CFD No. 2025-1 IA 2 issued or incurred whether in one or more series, secured by the levy of Special Taxes. “Boundary Map” means a recorded map which indicates the boundaries of CFD No. 2025-1 IA 2. “Building Permit” means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times maximum annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses. “Building Square Footage” means the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, or similar area. The determination of Building Square Footage shall be made by the CFD Administrator by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or by reference to appropriate records kept by the City or County. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31. “CFD Administrator” means an authorized representative of the City, or designee thereof, responsible for determining the Special Tax Requirement, for preparing the Annual Special Tax roll and/or calculating the Backup Special Tax. “CFD No. 2025-1 IA 2” and “CFD” means the City of Chula Vista Community Facilities District No. 2025- 1 Improvement Area 2. “City” means the City of Chula Vista, California. “City Council” means the City Council of the City acting as the legislative body of CFD No. 2025-1 IA 2 under the Act. “County” means the County of San Diego, California. Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 D-3 “Debt Service” means for each Fiscal Year, the total amount of principal and interest payable on any Outstanding Bonds during the Calendar Year commencing on January 1 of such Fiscal Year. “Developed Property” means for each Fiscal Year, all Taxable Property for which a Building Permit was issued prior to March 1 of the previous Fiscal Year. An Assessor’s Parcel classified as Developed Property but for which the Building Permit that caused such Assessor’s Parcel to be classified as Developed Property has been cancelled and/or voided prior to the Fiscal Year for which Special Taxes are being levied shall be reclassified as Undeveloped Property, provided that the levy of the Annual Special Tax after such reclassification shall not be less than 1.1 times the annual Debt Service on all Outstanding Bonds. If Bonds have not been issued, an Assessor’s Parcel classified as Developed Property for which such a Building Permit has been cancelled and/or voided shall be reclassified as Undeveloped Property. “Exempt Property” means for each Fiscal Year, all Assessor’s Parcels designated as being exempt from Special Taxes pursuant to Section 5 below. “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the period starting on July 1 and ending the following June 30. “Fiscal Agent” means the fiscal agent, trustee, or paying agent under the Fiscal Agent Agreement. “Fiscal Agent Agreement” means the agreement, indenture, resolution, or other instrument pursuant to which Bonds are issued, as modified, amended, and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Class” means any of the classes listed in Table 1set forth in Section 3A below. Note: Land Uses Class is not in reference to a property’s zoning designation. “Lot(s)” means an individual legal lot created by a Final Map for which a Building Permit for residential construction has been or could be issued. Notwithstanding the foregoing, in the case of an individual legal lot created by such a Final Map upon which Condominiums are entitled to be developed, the number of Lots allocable to such legal lot for purposes of calculating the Backup Special Tax applicable to such Final Map shall equal the number of Condominiums which are permitted to be constructed on such legal lot as shown on such Final Map. “Master Developer” means Home Fed Village 8E, LLC, a Delaware limited liability company or its successors or assignees. “Maximum Special Tax” means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Sections 3.C. and 3.D. below, which may be levied in a given Fiscal Year on such Assessor’s Parcel of Taxable Property. “Multifamily Residential Property” means all Parcels of Developed Property that consists of a building or buildings comprised of Residential Units available for rent by the general public, not for sale to an end user, and under common management. “Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 Permit has been issued for the purpose of constructing one or more non-residential units or structures, including, but not limited to commercial and industrial uses. “Outstanding Bonds” means all Bonds which are deemed to be outstanding under the Fiscal Agent Agreement. “Prepayment Amount” means the amount required to prepay the Special Tax Obligation in full for an Assessor’s Parcel as described in Section 8.A below. “Property Owner Association Property” means any Assessor’s Parcel within the boundaries of CFD No. 2025-1 IA 2 owned in fee by a property owner association, including any master or sub-association. “Proportionately” or “Proportionate” means for Developed Property, that the ratio of the actual Special Tax levy to the applicable Assigned Special Tax or Backup Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property. “Proportionately” may similarly be applied to other categories of Taxable Property as listed in Section 3 below. “Public Property” means, for each Fiscal Year, any property within the boundaries of CFD No. 2025 -1 IA 2, which is owned by, or irrevocably offered for dedication to the federal government, the State of California, the County, the City or any other public agency as of June 30 of the prior Fiscal Year; provided however that any property owned by a public agency and leased to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by or irrevocably offered for dedication to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. “Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit(s) has been issued for the purpose of constructing one or more Residential Units. “Residential Unit” means each separate residential dwelling unit that comprises an independent facility capable of conveyance (sale) or rental, separate from adjacent residential dwelling units, whether a Single Family Property, Multifamily Residential Property, or Affordable Residential Property. “Single Family Residential Property” means all Parcels of Developed Property initially available for sale that consists of a residential dwelling unit designed for occupancy by a single household for which a Building Permit has been issued for the construction of a Residential Unit excluding Multifamily Residential Property or Affordable Residential Property. “Special Tax” means any special tax levied within CFD No. 2025-1 IA 2 pursuant to the Act and this Rate and Method of Apportionment of Special Tax. “Special Tax Obligation” means the total obligation of an Assessor’s Parcel of Taxable Property to pay the Special Tax for the remaining life of CFD No. 2025-1 IA 2. “Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay regularly scheduled Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on the Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 D-5 for all Outstanding Bonds; and (v) pay directly for eligible development impact fees and the acquisition or construction of eligible facilities, provided the inclusion of such amount does not increase the levy of the Special Tax on Undeveloped Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the delinquency rate for Special Taxes in the previous Fiscal Year; less (vii) a credit for funds available to reduce the Annual Special Tax levy, as determined by the CFD Administrator pursuant to the Fiscal Agent Agreement. “State” means the State of California. “Taxable Property” means the Assessor’s Parcels within the boundaries of CFD, which are not exempt from the levy of the Special Tax pursuant to law or Section 5 below. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property. “Zone 1” means a geographic area consisting of Otay Ranch Village 8 East Planning Area R-5 and R-6 as shown in Attachment A, attached hereto. “Zone 2” means a geographic area consisting of Otay Ranch Village 8 East Planning Area R-7, R-8, R-9, and R-10 as shown in Attachment A, attached hereto. “Zone 3” means a geographic area consisting of Otay Ranch Village 8 East Planning Area VC-6 and VC-7 as shown in Attachment A, attached hereto. “Zones” means, collectively, Zone 1, Zone 2, and Zone 3. 2. LAND USE CLASSIFICATION Each Fiscal Year, beginning with Fiscal Year 2026-27, each Assessor’s Parcel within CFD No. 2025-1 IA 2 shall be classified as Taxable Property or Exempt Property. In addition, all Taxable Property shall further be classified as Developed Property or Undeveloped Property, and all such Taxable Property shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment of Special Tax determined pursuant to Sections 3 and 4 below. Furthermore, each Assessor’s Parcel of Developed Property shall be classified according to its applicable Land Use Class and Single Family Residential Property shall be further classified based on its Building Square Footage. In the event a Building Permit is issued for one or more parcels of Residential Property prior to March 1 of the previous Fiscal Year and an Assessor’s Parcel Number has not yet been assigned to each such Residential Property for the current Fiscal Year, the applicable Assessor’s Parcel may be classified as both Developed Property and Undeveloped Property. In such case, the Special Taxes levied on such Assessor’s Parcel shall be the sum of the amount derived from the following (i) applying the Assigned Special Tax applicable to each Residential Property for which a Building Permit was issued prior to March 1 of the previous Fiscal Year and (ii) levying the acreage allocable to such actual or planned Residential Property for which a Building Permit has not been issued prior to March 1 of the previous Fiscal Year as Undeveloped Property; the allocable acreage shall be computed on a pro-rata basis based on the relative number of remaining Residential Property to the total number of Residential Property entitled to be developed on such Assessor’s Parcel. The total number of parcels of Residential Property entitled to be developed on the applicable Assessor’s Parcel shall be determined from the recorded final map, condominium plan, applicable site plan, plot plan, or other appropriate records kept by the City as reasonably determined by the CFD Administrator. Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 3. SPECIAL TAX RATES A. Assigned Special Tax for Developed Property The Assigned Special Tax applicable to an Assessor’s Parcel classified as Developed Property commencing Fiscal Year 2026-27 shall be determined pursuant to Tables 1-3 below. Table 1 – Zone 1 Assigned Special Tax Rates for Developed Property Table 2 – Zone 2 Assigned Special Tax Rates for Developed Property Land Use Class Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit) 1 Single Family Residential Property < = 1,400 $3,021 2 Single Family Residential Property 1,401 - 1,700 $3,112 3 Single Family Residential Property 1,701 - 2,000 $3,374 4 Single Family Residential Property > = 2,001 $4,181 5 Non-Residential Property n/a $0 Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 D-7 Table 3 – Zone 3 Assigned Special Tax Rates for Developed Property On each July 1 commencing July 1, 2027, through July 1, 2037, the Assigned Special Tax for Developed Property shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year. B. Backup Special Tax for Developed Property When a Final Map or a condominium plan is recorded within CFD No. 2025-1 IA 2, the Backup Special Tax for Assessor’s Parcels of Developed Property classified as Residential or Non- Residential Property shall be determined as follows: For each Assessor’s Parcel of Residential and Non-Residential Property or for each Assessor’s Parcel of Undeveloped Property to be classified as Residential and Non-Residential Property upon its development within the Final Map area of CFD No. 2025-1 IA 2, the Backup Special Tax for Fiscal Year 2026-27 shall be the rate per Lot calculated according to the following formula: Zone 1 B = ($82,398 x A) / L Zone 2 B = ($64,169 x A) / L Zone 3 B = ($1,263 x A) / L The terms have the following meanings: B = Backup Special Tax per Lot A = Acreage classified or to be classified as Residential and Non-Residential Property in such Final Map. The land area applicable to a Taxable Property shall be computed from the Acreage of the Lot on which the Residential and Non-Residential Property is located, with the Acreage for such Lot allocated equally among the Taxable Properties located or to be located on such Lot. L = For a Final Map, the number of Lots which are classified or to be classified as Residential and Non-Residential Property. Notwithstanding the foregoing, if Assessor’s Parcels of Residential Property or Undeveloped Property for which the Backup Special Tax has been determined are subsequently changed or modified by recordation of a new or amended Final Map, then the Backup Special Tax applicable to such Assessor’s Parcels shall be recalculated to equal the total amount of Backup Special Tax that would have been generated if such change did not take place. Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 On each July 1 commencing July 1, 2027, through July 1, 2037, the Backup Special Tax applicable to each Assessor’s Parcel of Residential shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year. C. Maximum Special Tax for Developed Property Each Fiscal Year, the Maximum Special Tax for an Assessor’s Parcel of Developed Property within each Zone shall be the greater of the applicable Assigned Special Tax or Backup Special Tax for the appropriate Zone. D. Maximum Special Tax for Undeveloped Property The Maximum Special Tax for Undeveloped Property commencing in Fiscal Year 2026 -27 shall be as follows for each Zone. Zone 1 $82,398 per Acre Zone 2 $64,169 per Acre Zone 3 $1,263 per Acre On each July 1 commencing July 1, 2027, through July 1, 2037, the Maximum Special Tax applicable to each Assessor’s Parcel of Undeveloped Property within each Zone shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year. E. Multiple Land Use Classes If an Assessor’s Parcel may contain more than one Land Use Class, the Maximum Special Tax shall be the sum of the Maximum Special Taxes applicable to each Land Use Class present on the Parcel, as reasonably determined by the CFD Administrator. F. Special Tax Reduction prior to issuance of Bonds Prior to the issuance of the first series of Bonds, the Assigned Special Tax, Backup Special Tax, and Maximum Special Tax (collectively the “Special Tax Rates”) on Taxable Property may be reduced in accordance with, and subject to the conditions set forth in this paragraph. Upon the City’s receipt of a written request from the Master Developer and the CFD Administrator, the Special Tax Rates on Taxable Property may be reduced to a level which will provide not less than one hundred ten percent (110%) of the estimated debt service, net of administrative expenses, with respect to the amount of Bonds requested to be issued in such written request. If it is reasonably determined by the CFD Administrator that the total effective tax rate on Residential Property exceeds 2%, the Special Tax Rates shall be reduced to the amount necessary to satisfy the maximum allowable effective tax rate requirement on Residential and Non- Residential Property with the written consent of the CFD Administrator. It shall not be required that reductions among each Building Square Footage range of Residential Property or Acres of Non-Residential Property be proportional. Additionally, the CFD Public Facilities Costs amount in Section 8 shall be reduced commensurate with any reductions to the Special Tax Rates pursuant to this paragraph, as reasonably determined by the CFD Administrator. A certificate in the form attached hereto as Attachment “B” shall be used for purposes of evidencing the required written consent and effectuating the reduction to the Special Tax Rates. The reductions permitted pursuant to this paragraph shall be reflected in an amended Notice of Special Tax Lien which the City shall cause to be recorded with the County. Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 D-9 Once the first series of Bonds is issued for CFD No. 2025-1 IA 2, this paragraph 3.F shall become void. 4. METHOD OF APPORTIONMENT For each Fiscal Year commencing Fiscal Year 2026-27, the CFD Administrator shall determine the Special Tax Requirement and levy the Special Tax on all Taxable Property in accordance with the following steps for each Zone: Step 1: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement. Step 2: If additional monies are needed to satisfy the Special Tax Requirement after Step 1 has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax for Undeveloped Property as needed to satisfy the Special Tax Requirement. Step 3: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be increased Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the Maximum Special Tax for Developed Property as needed to satisfy the Special Tax Requirement. Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a result of a delinquency or default in the payment of the Special Tax applicable to any other Assessor’s Parcel within CFD No. 2025-1 IA 2 by more than ten percent (10%) above what would have been levied in the absence of such delinquencies or defaults. 5. EXEMPTIONS The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels of Public Property, (ii) Assessor’s Parcels of Property Owner Association Property, (iii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization and (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, provided that no such classification would reduce the sum of all Taxable Property in CFD No. 2025-1 IA 2 to less than 17.27 Acres in Zone 1 and 45.94 Acres in Zone 2 and 9.19 Acres for Zone 3. Assessor’s Parcels which cannot be classified as Exempt Property because such classification would reduce the sum of all Taxable Property in CFD No. 2025-1 IA 2 to less than the specified acreages per Zone described in the previous sentence, shall be classified as Taxable Property and will continue to be subject to the CFD No. 2025-1 IA 2 Special Taxes accordingly. Tax exempt status for the purpose of this section will be assigned by the CFD Administrator in the chronological order in which property becomes eligible for classification as Exempt Property. If the use of an Assessor’s Parcel of Exempt Property changes so that such Assessor’s Parcel is no longer classified as one of the uses set forth above that would make such Assessor’s Parcel eligible to be classified as Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property and subject to the applicable Special Taxes then in effect. Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 6. APPEALS The CFD Administrator shall have primary responsibility for the interpretation and application of this RMA. Any property owner who pays the Special Tax and claims the amount of the Special Tax levied on his or her Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such error not later than twelve (12) months after first having paid the first installment of the Special Tax that is disputed. If following such consultation, the CFD Administrator determines that an error has occurred, then the CFD Administrator shall take any of the following actions, in order of priority, to correct the error: (i) Amend the Special Tax levy on the property owner’s Assessor’s Parcel(s) for the current Fiscal Year prior to the payment date, (ii) Require the CFD to reimburse the property owner for the amount of the overpayment to the extent of available CFD funds, or (iii) Grant a credit against, eliminate or reduce the future Special Taxes on the property owner’s Assessor’s Parcel(s) in the amount of the overpayment. If following such consultation and action by the CFD Administrator the property owner believes such error still exists, such person may file a written notice of appeal with the City Manager. Upon receipt of such notice, the City Manager or designee may establish such procedures as deemed necessary to undertake the review of any such appeal. If the City Manager or designee determines an error still exists, the CFD Administrator shall take any of the actions described as (i), (ii) and (iii) above, in order of priority, to correct the error. The City Manager or the designee thereof shall interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguities and making determinations relative to the administration of the Special Tax and any property owner appeals. The decision of the City Manager or designee shall be final and binding to all people. 7. COLLECTION OF SPECIAL TAXES Collection of the Annual Special Tax shall be made by the County in the same manner as ordinary ad valorem property taxes are collected and the Annual Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taxes; provided, however, that the City Council may provide for (i) other means of collecting the Special Tax, including direct billings thereof to the property owners; and (ii) judicial foreclosure of delinquent Annual Special Taxes. 8. PREPAYMENT OF SPECIAL TAX OBLIGATION A. Prepayment in Full Property owners may prepay and permanently satisfy the Special Tax Obligation by a cash settlement with the City as permitted under Government Code Section 53344. The following definitions apply to this Section 8: “CFD Public Facilities Costs” means $52,000,000 or such lower amount as shall be determined by the CFD Administrator as an amount sufficient to pay development impact fees and acquire or construct the facilities to be financed under the Act and financing program for CFD No. 2025- 1 IA 2. Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 D-11 “Improvement Fund” means the fund (regardless of its name) established pursuant to the Fiscal Agent Agreement to hold funds, which are currently available for expenditure to acquire or construct the facilities or pay development impact fees authorized to be funded by CFD No. 2025-1 IA 2. “Future Facilities Costs” means the CFD Public Facilities Costs minus (i) costs previously paid from the Improvement Fund to acquire or construct the facilities or pay for development impact fees, (ii) monies currently on deposit in the Improvement Fund, and (iii) monies currently on deposit in an escrow or other designated fund that are expected to be available to finance CFD Public Facilities Costs. “Outstanding Bonds” means all Previously Issued Bonds, which remain outstanding as of the first interest and/or principal payment date following the current Fiscal Year excluding Bonds to be redeemed at a later date with proceeds of prior Special Tax prepayments. “Previously Issued Bonds” means all Bonds that have been issued prior to the date of prepayment. The Special Tax Obligation applicable to an Assessor’s Parcel of Developed Property, or Undeveloped Property for which a Building Permit has been issued may be prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor’s Parcel only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel eligible to prepay the Special Tax Obligation shall provide the CFD Administrator with written notice of intent to prepay and designate or identify the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the Prepayment Amount for such Assessor’s Parcel within thirty (30) days of the request and may charge a reasonable fee for providing this service. Prepayment must be made at least 75 days prior to any redemption date for the Bonds to be redeemed with the proceeds of such prepaid Special Taxes unless a shorter period is acceptable to the Fiscal Agent and the City. The Prepayment Amount (defined below) shall be calculated for each applicable Assessor’s Parcel or group of Assessor’s Parcels as summarized below (capitalized terms as defined below): • Bond Redemption Amount plus Redemption Premium • plus, Future Facilities Costs Prepayment Amount plus Defeasance Amount • plus, Prepayment Administrative Fees and Expenses less Reserve Fund Credit • less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined in Step 14 below) shall be calculated as follows: Step No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel. 2. For Assessor’s Parcels of Developed Property, determine the Maximum Special Tax. For Assessor’s Parcels of Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for that Assessor’s Parcel as though it was already Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 designated as Developed Property, based upon the Building Permit which has already been issued for that Assessor’s Parcel. 3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the total expected Maximum Special Tax revenue for CFD No. 2025-1 IA 2 assuming all Building Permits have been issued (build-out) within CFD No. 2025-1 IA 2, excluding any Assessor’s Parcels for which the Special Tax Obligation has been previously prepaid. 4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid for all applicable Assessor’s Parcels (the “Bond Redemption Amount”). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (expressed as a percentage), if any, on the Outstanding Bonds to be redeemed at the first available call date (the “Redemption Premium”). 6. Compute the Future Facilities Costs. 7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the “Future Facilities Prepayment Amount”). 8. Calculate the administrative fees and expenses of CFD No. 2025-1 IA 2, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding Bonds to be redeemed with the prepayment, , the cost of any escrow agreement, verification report fees, fees of bond counsel or fiscal agent counsel, and the costs of recording any notices to evidence the prepayment and the redemption (the “Prepayment Administrative Fees”). 9. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the expected redemption date for the Outstanding Bonds which, depending on the Fiscal Agent Agreement, may be as early as the next interest payment date. 10. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Future Facilities Prepayment Amount and the Prepayment Administrative Fees from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. 11. Subtract the amount computed in paragraph 10 from the amount computed in paragraph 9 (the “Defeasance Amount”). 12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the reserve requirement (as defined in the Fiscal Agent Agreement) on the prepayment calculation date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”). No Reserve Fund Credit shall be granted if, after the Prepayment Amount is calculated, reserve funds are below 100% of the reserve requirement after considering such prepayment. 13. If any capitalized interest for the Outstanding Bonds will not have been expended at the Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 D-13 time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 3 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the “Capitalized Interest Credit”). 14. The amount to prepay the Special Tax Obligation is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 8, and 11, less the amounts computed pursuant to paragraphs 12 and 13 (the “Prepayment Amount”). 15. From the Prepayment Amount, the sum of the amounts computed pursuant to paragraphs 4, 5, and 11, less the amounts computed pursuant to paragraphs 12 and 13 shall be deposited into the appropriate fund as established under the Fiscal Agent Agreement and be used to retire Outstanding Bonds or make Debt Service payments. The amount computed pursuant to paragraph 7 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 8 shall be retained by CFD No. 2025-1 IA 2. The Prepayment Amount may be sufficient to redeem an amount other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Fiscal Agent Agreement to redeem Bonds to be used with the next prepayment of Bonds. The CFD Administrator will confirm that all previously levied Special Taxes have been paid in full. With respect to any Assessor’s Parcel for which the Special Tax Obligation is prepaid in full, once the CFD Administrator has confirmed that all previously levied Special Taxes have been paid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Special Tax Obligation and the release of the Special Tax lien on such Assessor’s Parcel, and the obligation of the owner of such Assessor’s Parcel to pay the Special Tax shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year. B. Partial Prepayment The Special Tax on an Assessor’s Parcel of Developed Property or Undeveloped Property for which a Building Permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section 8.A.; except that a partial prepayment shall be calculated according to the following formula: PP = (PE-A) x F+A These terms have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section 8.A F = the percentage by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax Obligation Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 A = the Prepayment Administrative Fees and Expenses from Section 8.A The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax Obligation, (ii) the percentage by which the Special Tax Obligation shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax Obligation for an Assessor’s Parcel within sixty (60) days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor’s Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Section 8.A., and (ii) indicate in the records of CFD No. 2025-1 IA 2 that there has been a partial prepayment of the Special Tax Obligation and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel. Notwithstanding the foregoing, no partial prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed partial prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year. 9. TERM OF SPECIAL TAX The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement, but in any event not after Fiscal Year 2076-77. The Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined that all required interest and principal payments on the Bonds have been paid, no delinquent Special Taxes remain uncollected, and the City has covenanted that it will not issue any more Bonds (other than refunding Bonds) to be supported by Special Taxes levied under this Rate and Method of Apportionment. Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 Attachment A-1 ATTACHMENT A – Boundary Map Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 Attachment A-3 Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 60297.00089\45137212.2 Attachment B-1 ATTACHMENT B CERTIFICATE TO AMEND THE SPECIAL TAX COMMUNITY FACILITIES DISTRICT NO. 2025-1 IA 2 OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO STATE OF CALIFORNIA TAX REDUCTION CERTIFICATE 1. The undersigned property owners hereby request modification of the following information in the Rate and Method of Apportionment of Special Tax (the “RMA”) for Community Facilities District No. 2025-1 IA 2 of the City of Chula Vista (the “CFD”). 2. Pursuant to Section 3 of the Rate and Method of Apportionment, as attached to the Notice of Special Tax Lien, recorded in the Official Records of the County of San Diego as Instrument No. XXXXXX on MM/DD/YYYY, the County of San Diego (the “County”) hereby reduces the Assigned Special Tax for Developed Property within the CFD as set forth in Tables 1-3 of the RMA. 3. The information in Tables 1-3 below, relating to the Assigned Special Tax for Developed Property within CFD No. 2025-1 IA 2 shall be amended and restated in full as follows: Table 1 – Zone 1 Assigned Special Tax for Developed Property Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 Table 2 – Zone 2 Assigned Special Tax for Developed Property Table 3 – Zone 3 Assigned Special Tax for Developed Property 4. The calculation of the Backup Special Tax for Assessor’s Parcels of Developed Property within CFD No. 2025-1 IA 2 classified as Residential Property and Non-Residential Property shall be amended as follows: For each Assessor’s Parcel of Residential Property and Non-Residential Property or for each Assessor’s Parcel of Undeveloped Property to be classified as Residential Property and Non-Residential Property upon its development within the Final Map area of CFD No. 2025-1 IA 2, the Backup Special Tax shall be the rate per Lot calculated according to the following formula: Zone 1: B = (R x A) / L Zone 2: B = (R x A) / L Zone 3: B = (R x A) / L The terms have the following meanings: Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8 60297.00089\45137212.2 Attachment B-3 B = Backup Special Tax per Lot A = Acreage classified or to be classified as Residential Property and Non-Residential Property in such Final Map. The land area applicable to a Residential Property and Non-Residential Property shall be computed from the Acreage of the Lot on which the Residential Property and Non-Residential Property are located, with the Acreage for such Lot allocated equally among all the Residential Property and Non-Residential Property located or to be located on such Lot. L = For a Final Map, the number of Lots which are classified or to be classified as Residential Property or Non-Residential Property R = Backup Special Tax Rate per Acre 5. On each July 1 commencing July 1, 2027, through July 1, 2037, the Assigned Special Tax Rates in Tables 1-3 and the Backup Special Tax applicable to each Assessor’s Parcel of Residential Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. 6. Section 3 of the RMA may only be modified prior to the issuance of Bonds. 7. Upon execution of the certificate by the City and the CFD, the City shall cause an amended Notice of Special Tax Lien for the CFD to be recorded reflecting the modifications set forth herein. I hereby declare under penalty of perjury that the above representations are true and correct. Property Owner: By: _____________________________________________ Date: ________________________ By execution hereof, the undersigned acknowledges, on behalf of the City of Chula Vista and CFD No. 2025-1 IA 2 receipt of this Certificate and modification of the RMA as set forth in this Certificate. City of Chula Vista By: _____________________________________________ Date: ________________________ CFD Administrator Community Facilities District No. 2025-1 IA 2 of the City of Chula Vista By: _____________________________________________ Date: ________________________ CFD Administrator Docusign Envelope ID: D143D50D-6B86-83B6-832F-9E0EFD51D3F8