24. Habitat for Humanity Cleo Ave
COMMUNITY DEVELOPMENT DEPARTMENT
CUPERTINO.
CITY HALL
10300 TORRE AVENUE. CUPERTINO, CA 95014-3255
(408) 777-3308 . FAX (408) 777-3333
Summary
Agenda Item NQ.g
Meeting Date: December 18. 2007
SUBJECT:
Consider accepting proposal from Habitat for Humanity for the Cleo Avenue Affordable Housing
Development.
RECOMMENDATION:
Accept the proposal from Habitat for Humanity and direct staff to initiate rezoning the property
from P(R3) to P(Res).
"'i
BACKGROUND:
Property Purchase
In March 2000, the California Department of Transportation (Caltrans) notified the City of
Cupertino of excess property located on Cleo Avenue adjacent to Highway 85, Under California
State law (Government Code ~54220), Caltrans was required to first offer the subject property to
the City for an affordable housing or park use. Cupertino completed the sale in August 2005
when the property title was transferred to the City for the purchase price of $615,000.
The 11,938 sq. ft. parcel is currently zoned P(R-3), Planned Development, multi-family, with a
land use designation of "medium to high density 10-20 d.u./acre", The zoning district allows a
maximum of four rental units.'
Request for Proposals
On August 20, 2007, the City released a Request for Proposals (see Attachment A) for the Cleo
Avenue Affordable Housing Development. Of the thirty-eight agencies on the mailing list
(Attachment B), only one response was received. Habitat for Humanity presented the City with a
proposal (Attachment C) on October 17~ 2007.
Habitat for Humanity Proposal
Habitat for Humanity, with minimal modifications, can construct the project as specified in the
City's RFP. In order to complete the project, the agency is requesting that the City donate the
land, provide an additional $200,000 in the form of a 30-year loan that is forgiven over time,
conduct a city initiated rezoning of the property from P(R3) to PeRes) and assist in the use permit
process.
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Consider accepting proposal from Habitat for Humanity for the Cleo A venue Affordable Housing Development.
December 18, 2007
Page 2 of 2
The proposal will result in four ownership units for very-low income households. These units
will sell for approximately $185,000 and will contain energy saving features such as energy star
rated appliances, solar units for heating and electricity, tankless water heaters and fluorescent
lighting fixtures and bulbs throughout the homes. In addition to the energy saving features,
Habitat for Humanity plans to seek a GreenPoint rating from ''Build It Green", a non-profit
organization whose mission is to promote healthy, energy and resource efficient building
practices in California.
Proiect Timeline
The proposed schedule for construction can be found on page 9 of the proposal. In summary,
Habitat for Humanity plans on seeking entitlements starting in January 2008, submitting plans
for permits in October 2008 and completing construction in April 2010.
Cupertino Housing Commission:
The Cupertino Housing Commission concurred with the staff to recommend acceptance of the
proposal at the November 15, 2007 meeting.
FISCAL IMPACT:
No fiscal impact to the General Fund is expected from accepting Habitat for Humanity's proposal
since the land purchase and any construction cost is funded from the CDBG and Housing
Mitigation funds, which can only be used for affordable housing.
PREPARED BY: Vera Gil, SeniorPlanner
"
, I
~OR SUBMITTAL:
David W. Knapp
City Manager
Steve Piasec ., Director of
Community Development
Attachments:
Attachment A: Request for Proposals
Attachment B: Mailing List
Attachment C: Habitat for Humanity Proposal
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"
CITY OF CUPERTINO
Request For Proposals
Cleo Avenue Affordable Housing Development
CUPERTIN'O
Cleo Avenue Affordable Housing Development
The City of Cupertino Community Development Department invites
proposals from affordable housing developers to build and manage
and affordable housing development on City-owned property located
on Cleo Avenue.
August 20, 2007
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TABLE OF CONTENTS.
IN'TRODUCTION: .......... .............. .....,...... ................. ....... ................,.", ..........., ........ ....... ............. 4
Site: ............. ....... .........................".,..................",........' ........... ........,.... ...........,. ..........,.............. 5
Neighborhood and Environs: .................."..,." ........................, ..,.............. .................................. 5 '
SITE DEVELOPMENT..""""",..., ........ ...................,.,... .......... ......."................".. ......, ....... ..........,. 6
Property Ownership/City Assistance .................... ,.,.", ......... .............. ..............,.. .............. ......'.. 6
Project Tenants. ...................................,'.,...."."... ...:.......""....",.,. ........,'...... ......... .................. .... 6
Public Participation"", .............. ........,...... ..........."... ............ ............. ............., .......".................,. 6
Architect and Project Design .. ................ ........ .........,..., ......... ............ .........,..... .......................... 6
Management and Maintenance ............., "............ ........ ..................., ..............,.. .......................... 6
"
Insurance.". ...... ........... ....." ......"..,..,.. ,.... ...... ..... .............,.",.....,..........,.., .._........... ....... ........ ...... 7
CONTEN'T OF PROPOSALS .......................... ........... ............. ...... ......, ............. .......... .................. 7
Cover Letter ....... ......... .....,....................... ..... ............... ........... ............. ..............,.... .................... 7
Experience of Agency.......,"',.... ....... .'........................... .." .......' ............... .............................", ,. 7
Experience of Development Team.......,.....,.... ...... ............... ............' ........... ..........,., ............;..... 7
Project Approach ....... .............................................."",.,........... ...... ............ ....... .............."... ..... 7
Project Schedule......,.".........,......... ................. ................. ...................",. .............. ."...".............,.. 8
Scope of Services... .........,.. .:...............""",..........." ............... ........ ............ ...... ........,. ...... ........... 8
Project Financing and Pro Fomla ....." ............... ......,..., ..... ......, ...... ............;. .............." .............. 8
Selection Criteria ........ ..........:......... ...... .......... ........, ......... .................... ...........",... ...........,.... ..... 8
Background Materials...........................,.,...........,.."....... ~........................ ~.................... ., . . . .., , .:... 9
General Schedule.........,............ .......", ............. ........ .............. ......,.............. ............ ....... .........".. 9
Submission of Qualifications",.,.. ,............ ............'",.. .......................................:............ ..... ..,.... 9
24 -4
CITY OF CUPERTINO
REQUEST FOR PROPOSALS FOR
CLEO DRIVE AFFORDABLE HOUSING DEVELOPMENT
INTRODUCTION:
The City of Cupertino strives to provide quality affordable housing that meets the needs of a
diverse population. The City invites interested affordable housing developers to submit their
qualifications and a proforma for the proposed affordable family housing development.
The proposed affordable development will be built on a .20-acre (8,798 sq. ft) lot, which the City
purchased from CalTrans. Located at the end of a cul-de-sac on Cleo Avenue, the property abuts
Highway 85 (see figure 1 below).
Fil1ure 1: SlIhiect nronerh'_ IOl'.2terl at, the enrl of C:leo A "enne.
24 - 5
This will be a high profile project that will require extensive public participation and a thoughtful
site plan enhancing the adjacent neighborhood. The City's key objectives for the project include:
. Targeting affordability to very low income family households earning 50% or less of the
area median income;
. Producing a high quality design that enhances the neighborhood;
. Building strong community support;
. Maintaining exceptional management and property maintenance.
Affordable housing continues to be a high priority for the City. Cupertino is seeking proposals
that demonstrate an understanding of the community, the unique attributes and challenges of the
site, successful experience in developing and managing affordable family housing and a
commitment to an inclusive and informative public outreach process. For more information
about the City of Cupertino's housing programs, please visit our web site at
Vvww' . cupertino , ondhousing.'
Site:
The city-owned site is located at the end of Cleo Avenue abutting Highway 85 (see Figure 1
above). The Assessor Parcel Number for the vacant .20-acre (8,798 sq. ft) site is 362-31-004.
Current zoning on the property is Planned Development Multi-family Residential or P(R3) which
allows for apartments. In order to construct ownership units, the parcel would need to be
rezoned to Planned Development Residential or P(Res). Ifrezoning is necessary, City assistance
is available. Surrounding uses include a townhome development to the south, a privately owned
vacant P (R3) parcel to the north, existing nonconforming single-family residences to the west
and Highway 85 to the east. '
Neighborhood and Environs:
Cupertino is home to some of the greatest innovators in technology, including companies like
Hewlett-Packard, Apple Computer, and Symantec. Quality schools and proximity to high-tech
jobs make Cupertino a desirable Silicon Valley address for a highly educated and culturally
diverse population. More than 60 percent of residents aged 25 years or older hold a bachelor's
degree or higher. Mote than 40 percent of residents were born outside of the United States.
Along with one of the friendliest climates in the United States, it also boasts one of the most
diverse and engaged communities in Northern California. Prestigious public schools that serve
this site are Regnart Elementary School, Kennedy Junior High School and Monta Vista High
School.
For outdoor recreation, Cupertino offers more than 150 acres of parkland, including:
. Blackbeny Farm, a 16-acre recreational facility offering group picnics, volleyball courts,
3 swinuning pools, horseshoe pits, basketball courts, softball field and golf.
. McClellan Ranch, which houses a nature museum and community garden; and
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· Three Oaks Park, a 3 ,I-acre neighborhood park with a playground and picnic areas is
within walking distance of the Cleo Avenue property.
SITE DEVELOPMENT
This section covers the key elements concerning development of the site. Proposals should be
responsive to each ofthe elements. It is anticipated that detailed requirements in each area will
be addressed in an Agreement developed through discussion with the selected developer.
Property Ownership/City Assistance
The City of Cupertino has clear title to the property and a title report is included in the
background information for this RFP. City contributions toward the project could include land
costs, Below Market Rate Housing Program In Lieu Fees or federal Community Development
Block Grant (CDBG) funds. Any fmancial assistance to the project would be provided in the
form of long-term loans. The response should include proposed loan repayment terms, if
applicable.
Project Tenants ,_
The development should be primarily targeted to very low~incomehouseholds earning 50% or
less of area median income (AMI) as defmed by HUD, however, preference will be given to
proposals targeting extremely low~income households (30% or less of the AMI). The
development is intended to be family-oriented housing and would be required to comply with the
City's priority point policy (see Attachment A). The City would work closely with the selected
developer on the management plan and the initial sale or rental of the units.
Public Participation
An open and inclusive public participation process is essential for project success. In addition to
study sessions and public hearings with the City Council, the selected developer would be .
expected to participate in focus group meetings including, but not limited to, neighborhood and
larger community meetings. The selected developer will need to be responsive to public input
and capable of answering questions clearly and concisely.
Architect and Project Design
The City of Cupertino has entered into an agreement with KTGY Group, Inc. for the creation of
the initial site plan and building elevations (see Attachment B). It is the City's preference that
the selected developer continues to work with KTGY Group, Inc. to refme the architectural
drawings and complete the construction drawings. The City expects an attractive design that
integrates effectively with the surrounding neighborhood Family~oriented amenities and
features that promote community within the development should be included in the overall
design.
Management and Maintenance
Successful experience in the ongoing management and maintenance of affordable housing will
be a key factor in: choosing a developer for this project. It is essential for prospective developers
to demonstrate fmancial' and organizational capabilities and have proven experience with
securing fmancing, construction management, and ongoing property management.
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Insurance
The selected agency will be required to comply with the City's insurance requirements (see
Attachment C) and these requirements should be factored into the project budget. .
CONTENT OF PROPOSALS
Proposals should contain the information detailed below. The City is not requiring that
conceptual architectural design drawings be submitted as part of this proposal.
1. Cover Letter
a. Explain why your agency should be chosen for thi,s project.
b. Provide a short summary of how your agency would accomplish the City's design
concept on the site, including, type of construction, design issues, and any other key
aspects to your approach.
c. Explain any [mancial support requested from the City of Cupertino and the reason for
this request.
2. Experience of Agency ,
a. Describe the agency's experience in affordable housing development and particularly
family-housing development. '
b. Provide descriptions of up to five affordable family rental projects built and managed
by the fumes), including the last independent audit report and auditor management
letters issued for the two most current projects.
c. Provide at least three references from City or County staff involved with projects
completed in the last three years.
d. Provide independent audit reports of the agency for the last three years and any
management letters issued as part of these audits,
e. Describe any awards conferred on the agency for the design, construction, or
management of affordable housing projects.
3. Experience of Development Team
a Describe the development team, and identify the Project Manager and members of the
project team.
b. Provide the qualifications oftearn members and discuss their related work experience.
4. Project Approach
a. Provide a narrative on the development team's approach to the project, responding to
the development issues outlined in this RFP.
b. Discuss how the proposed site plan can be improves upon in relation to the following
ISsues:
i. Integration with the neighborhood;
ii. Site constraints;
iii. Provision of family amenities;
iv. Proposed type of housing units - rental v. ownership.
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c. Identify up to five key elements in your approach to developing a family housing
project, which would make a distinct difference in the long-term quality of the project
and integration with the neighborhood. .
d. In the case of a rental project, describe the proposed program for ongoing
maintenance and periodic renovation of the project.
e. In the case of an ownership project, describe how the maintenance of common area
will be accomplished and how a Homeowners Association can be managed for such a
small project.
f. Describe the management structure for the project, including the number and type of
onsite management positinns, the responsibilities of each position and the number of
hours per week each position will be dedicating exclusively to the project. Explain
which staff positions would be residing full-time on the property.
g. . Provide a narrative on green practices and other innovative concepts for the project.
Describe in as much detail as possible what green practices will be utilized in this
proposed development.
5. Project Schedule
Provide a proposed project timelinc;:~
6. Scope of Services
Provide a proposed scope of services for this project.
7. Project Financing and Pro Forma
a. Provide a detailed project budget listing all the anticipated funding sources including
any City contribution to the project.
b. Provide breakdown of all development costs, including hard and soft costs, and cost
per unit. Construction budget should be based upon the payment of State and federal
prevailing wages. Also, the City requires a 10 percent construction contingency,
which should be factored into the project budget.
c. If applicable, identifY how much of the agency's developer's fee under the tax credit
program will be invested back into the project.
d. If City funds are requested, describe the proposed loan terms for the City funds
requested for the project.
e. Provide a cash-flow spreadsheet detailing expenses and income for a 30-year period.
f. Describe the agency's experience using housing tax credits (9% and 4%), tax exempt
bonds, federal CDBG and HOME funds, California MHP and project based HUn
Section 8.
Selection Criteria
Finns will be evaluated based on the following criteria:
· Project cost (least amount of public assistance requested).
· Demonstrated ability to stay on schedule and within the budget;
· Feasibility of the project based on'the pro forma and anticipated financing;
· Affordability of the project to very low-income households based on the rent or mortgage
strncture;
· Past success in leveraging other funding sources; and
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. Green practices and innovative concepts for the project;
. Qualifications and experience of development team;
. Demonstrated ability to work cooperatively with public agencies and City staff;
. Ability to engage in a cooperative and productive dialogue with Cupertino residential and
business community to resolve design issues and build support for the project;
. Understanding of the neighborhood and environmental context for the project;
. Ability to leverage existing design concepts and maximize site;
. Concepts for developing the site that indicate an understanding of the Cupertino
community and family housipg;
. Demonstrated ability to create a high quality housing project.
. Financial stability of the agency based ~n independent audit reports, reserves, and P3.$t
performance;
. Successful management history for similar affordable family housing developments (if
applicable);
. Solid planning for the long-term maintenance and periodic renovation of the project (if
applicable);
Proposals will be invited to an interview with City staff to clarify their proposals, approaches,
and qualifications for this project. Based upon this evaluation and the proposals, the top-ranked
agency will be recommended to the City Council. The fmal selection of a developer for this
project will be made by the City Council.
Background Materials
The following is a list of background material that is attached to assist you i.1:\ preparing a
proposal. ,
. Summary of Priority Point System for Tenant/Owner Selection - Attachment A
. Proposed Site Plan and Elevations - Attachment B
. Location Map - Attachment C
. Insurance Summary - Attachment D
. Preliminary title report - Attachment E
General Schedule
1. Selection of developer and architect ( 6 months)
2. Project design and environmental assessment (18 months) ~
3. Securing funding from other sources (12-18 months)
4. Project Construction (16 months) .
Can happen simultaneously.
Submission of Qualifications
To be considered for the project, respondents must , submit a complete response to this Request
for Proposals. The City must receive six copies of your proposal and related information by 5:00
pm on Monday, October 22,2007. Proposals received after this date and time, regardless of the
postmark date, will not be considered. Proposals submitted by fax or e~mail will not be accepted
Please submit proposals by mail or delivery as follows,
24 - 10
Attention: Vera Gil
Community Development Department
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
The City, following review of the initial submission, may request additional information.
Prospective developers are encouraged to visit the site prior to submitting a proposal. For
questions regarding this Request for Proposals, please contact Vera Gil, Senior Planner, at (408)
777-3251. "
The City may, at its option, reject all proposals, re~advertise the RFP or cancel the RFP.
24 - 11
Attachment A
Priority Point System for Tenant/Owner Selection
Applications for units shall be solicited as necessary to maintain adequate application pools for
each appropriate income level. Program brochures that are culturally and linguistically
appropriate to the community shall be provide and distributed. These brochures shall be
available at City Hall, the Cupertino Public Library, the Quinlan Community Center, the
Cupertino Senior Center and other'appropriate locations. Furthermore, developer shall make
outreach efforts through local media that are culturally and linguistically appropriate to the
corinnunity .
Applicants may use a "self-qualifying" eligibility application, which will be subject to
verification.
Applicants will receive a point for meeting each of the following descriptions:
One point = Cupertino resident;,;
Two points = Primary full-time employment in Cupertino;
One point = Public Service Employee.
Applicants receiving four points shall be considered the highest priority;
Applicants receiving three points shall be considered the second highest priority;
Applicants receiving two points shall be considered the third highest priority;
Applicants receiv~g one point shall be considered the fourth highest priority; and
Applicants receiving zero points shall be considered the lowest priority.
24 - 12
Attachment B
Unit Plan 1
Q
4:
8'
I
16'
I
2 Bedrooms
1 Bath
922 sf (+19 sf at Alt.)
Unit Plan 1
Second Aoor
[ ----7
.........
-"....
-...
-~....
"Cr'
I
I
I
L
I~!
':7
~ CJ
Unit Plan 1 A1t,
Partial First Floor
Unit Plan 1
First Floor
Unit Plan 1 AJt
Front Elevation
Unit Plan 1
Front 8evation
Cupertino, CalifornIa
I
K T G Y G r 0 U p, r n Co
City of CUpertino , .. . 15 1. 2 13 3
_DIoMogs..CIIl1COpIuaI...., jo1>l2001.0215
_4. 2D01
I
CLEO AVENUE
Unit Plan 2
q
4'
:
8'
i
16'
I
2 Bedrooms
1 Bath
927 sf
Unit Plan 2
Second Floor
Unit Plan 2
First Floor
Unit Plan 2
Front Elevation
I CLEO AVENUE I KTGY G"".,I.o I
CIty of CUpertino 949, '51.2 In
Cupertino, California -_.._onIr jIIb.200l.D121
_4,20117
"'-'"
-
Conceptual Site Plan - Scheme 12
?l~ ,?,L1lD.I'lJ~ry (gtyY~~~1)
Unit 1= 922 sf x 3 unIts
Unit 2= 927 sf x 1 unit
Total = 4 units
Parking = 6 stalls
1.5/ unit
o
15' 3D' -.-:1
N
I'
I
I
i
I
I
.;
OIl',"""
I
I CLEO AVENUE I nGY G,o"p,I"" I
City of Cupertino '''.15I,l,1))
Cupertino, California tbrc:; 0:'t"'lf\9J J~ mn=null only JD" 2tD6.D22G
Au~.c:.20!17
-
Attachment C
:.
Attachment D
Order Number:
Page Number: 1
~1' "MF.Jtl
~
.'~
First American Title Company
161 South San Antonio Road, Suite 5
Los Altos, CA 94022
Vera Gill
oty of Cupertino
10300 lorre Avenue
Cupertino, CA 95014-3202
Escrow Officer:
. Phone:
Fax No,:
E-Mail:
Buyer:
Property:
Angie"'Park (AP)
(650)941-3523
(866)715-2361
apark@firstam.com
City of Cupertino
NO SITUS ADDRESS
CUPERTINO, CA 95014
PREUMINARY REPORT
In response to the above referenced application for a policy of title insurance, this company hereby reports that it is prepared to issue, or
cause to be issued, as of the date hereof, a Policy or Policies of Title Insuranc:e describing the land and the estate or interest therein
hereinafter set forth, insuring against loss whic:h may be sustained by reason of any defect, lien or encumbrance not shown or'referred to as
an Exc:eption below or not exduded from coverage pursuant to the printed Sc:hedules, Conditions and Stipulations of said Policy forms,
The printed Exc:eptlons and Exdusions from the coverage of said Policy or Polities are set forth in ExhIbit A attached, Copies of the Policy
forms should be reac!. They are available from the office whic:h issued this report
Please read the exceptions shown or referred to below and the exceptions and exdusions set forth in Exhibit A of this
report carefully. lbe exceptions and exdusions are meant to provide you with notice of matters which are not covered
under the tenns of the tiUe insurance policy and should be carefully considered,
It is Important to note that this preliminary report is not a written representation as to the condition of title and may not
list all liens, defects, and encumbrances affecting title to the land.
This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title
insuranc:e and no liability Is assumed hereby, If it is desired that llabDity be assumed prior to the issuance of a policy of title insurance, a
Binder or Commitment should be requested.
first American T1t:le
24 - 17
Order Number: 431fi.2852944
Page Number: 2
'Dated as of July 24,2007 at 7:30 A.M.,
The form of Policy of title insurance contemplated by this report is:
To Be Determined
A specific request should be made if another form or additional coverage is desired.
Title to said estate or interest at the date hereof is vested in:
THE STATE OF CAUFORNIA
The estate or interest in the land hereinafter described or referred to covered by this Report is:
A fee.
'-i
The Land referred to herein is described as follows:
(See attaChed Legal Description)
At the date hereof exceptions to coverage in addition to the printed Exceptions and Exclusions in said
policy fonn would be as follows:
1. General and spedal taxes and assessments for the fisCC!1 year 2007-2008, a lien not yet due or
payable,
2. The lien of supplemental taxes, if any, assessed pursuant to OIapter 3.5 commenting with
Section 75 of the California Revenue and taxation Code, '
3. Any and all offers of dedication, conditions, restrictions, easements, fenceline/boundary
diScrepancies, notes and/or provisions shown or disclosed by the filed or recorded map referred
to in the legal description, '
4. Any facts, rights, interests, or claims which are not shown by the public records but which could
be ascertained by an inspection of said land or by making inquiry of persons in possession
thereof.
5. Rights of parties in possession.
Rrst American Title
24 - 18
,>
Oreler Number. 4316-2852944
Page Number: 3
INFORMATIONAL NOTES
Note: The policY to be issued may contain an arbitration clause, When the Amount of Insurance is less
than the certain dollar amount set forth in any applicable arbitration clause, all arbitrable matters shall be
arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties, If
you desire to review the terms of the policy, induding any arbitration dause that may be induded,
contact the office that issued this Commitment or Report to obtain a sample of the policy jacket for the
policy that is to be issued in connection with your transaction,
1. General and spedal taxes and assessments for the fiscal year 2006-2007 are exempt.
2, This report is preparatory to the issuance of an ALTA Loan Policy. We have no knowledge of any
fact which would preclude the issuance of the policy with CL TA endorsement ronns 100 and 116
and if applicable, 115 and 116.2 attached.
'1"
When issued, the CLTA endorsement form 116 or 116.2, if applicable will reference
a(n) COMMERQAL known as NO SITUS ADDRESS, CUPERTINO, CALIFORNIA, 95014.
3. According to the public records, there has been no conveyance of the land within a period of
twenty-four months prior to the date of this report, except as follows:
None
4. This preliminary report/commitment was prepared based upon an application for a policy of title
insurance that identified land by street address or assessor's parcel number only, It is the
responsibility of the applicant to determine whether'the land referred to herein is in fact the land
that is to be desaibed in the policy or polides to be issued,
5. Should this report be used to fadlitate your transaction, we must be provided with the following
prior to the issuance of the policy:
A. WITH RESPECT TO A CORPORATION:
a. A certificate of good standing of recent date issued by the Secretary of State of the
corporation's state of domidle.
b. A certificate copy of a resolution of the Board of Directors authorizing the contemplated
transaction and designating which corporate officers shall have the power to exeOJte on
behalf of the corporation.
c, Requirements which the Company may impose following its review of the above material
and other information which the Company may require.
B, WITH RESPECT TO A CALIFORNIA LIMITED PARTNERSHIP:
a. A certified copy of the certificate of limited partnership (form LP-1) and any amendments
thereto (form LP-2) to be recorded in the public records;
First American rtl:le
24 - 19
:.
Order Number: 4315-2852944
Page Number: 4
b. A full copy of the partnership agreement and any amendments;
c. Satisfactory evidence of the consent of a majority in interest of the limited partners to
the contemplated transaction;
d. Requirements which the Company may impose follOWing its review of the above material
and other information which the Company may require,
C, WITH RESPECT TO A FOREIGN liMITED PARTNERSHIP:
a, A certified copy of the application for registration, foreign limited partnership (form LP-5)
and any amendments thereto (form LP-6) to be recorded in the public records;
b. A full copy of the partnership agreement and any amendment;
c. Satisfactory evidence of the consent of a majority in interest of the limited partn~rs to
the contemplated transaction;,
d, ReqUirements which the Company may impose following its review of the above material
and other information which the Company may require.
D, WITH RESPECT TO A GENERAL PARTNERSHIP:
a. A certified copy of a statement of partnership authority pursuant to Section 16303 of the
California Corporation Code (form GP- I), executed by at least two partners, and a
certified copy of any amendments to such statement (form GP-7), to be recorded in the
public records;
b, A full copy of the partnership agreement and any amendments;
c. Requirements which the Company may impose following its review of the above material
required herein and other information which the Company may require.
E. WITH RESPECT TO A UMITED UABIUlY COMPANY:
a, A copy of its operating agreement and any amendments thereto;
b. If it is a California limited liability company, a certified ,copy of its articles of organization
(LLC-1) and any certificate of correction (LLC-ll), certificate of amendment (LLC-2), or
restatement of articles of organization (LLC-10) to be recorded in the public records;
c. If it is a foreign limited liability company, a certified copy of its application for
registration (LLC-5) to be recorded in the public records;
d, With respect to any deed, deed of trust, lease, subordination agreement or other
document or instrument eXeaJted by such limited liability company and presented for
recordation by the Company or upon which the Company is asked to rely, such
first American Title
24 - 20
Order Number: 4316-2852944
Page Number: 5
document or instrument must be executed in accordance with one of the following, as
appropriate: '
(i) If the limited liability company properly operates through officers appointed or
elected pursuant to the terms of a written operating agreement, such documents
must be executed by at least two duly elected or appointed officers, as follows: the
chairman of the board, the president or any vice president, and any secretary,
assistant secretary, the chief finandal officer or any assistant treasurer;
(ii) If the limited liabiHty company properly operates through a manager or managers
identified in the artides of organization and/or duly elected pursuant to the terms of
a written operating agreement, such document must be executed by at least two
such managers or by one manager if the limited liability company properly operates
with the existence of only one manager,
e. Requirements which the Company may impose following its review of the above material
and other information which the Company may require.
F, WITH RESPECT TO A TRUST: .,'.
a, A certification pursuant to Section 18500.5 of the California Probate Code in a
form satisfactory to the Company.
b. Copies of those excerpts from the original trust documents and amendments
thereto which designate the trustee and confer upon the trustee the power to act
in the pending transaction.
c. Other requirements Which the Company may impose following its review of the
material require herein and other information which the Company may require.
G, WITH RESPECT TO INDMDUALS:
a, A statement of information,
The map attached, if any, mayor may not be a survey of the land depicted hereon, Rrst American
expressly disclaims any liability for loss or damage which may result from reliance on this map except to
the extent coverage for such loss or damage is expressly provided by the terms and provisions of the title
insurance policy, if any, to which this map is attached,
first American Title
24 - 21
Order Number: 4316-2852944
Page Number: 6
LEGAL DESCRIPTION
Real property in the unincorporated area of the County of SANTA CLARA, State of CAUFORNIA,
desciibed as follows:
LOTS 5 AND 6, AS SHOWN UPON THAT CERTAIN MAP ENTITLED, ''TRACT NO. 789, PINKERT
SUBDIVISION BEING A PORTION OF THE S, W. 1/4 SECTION 24 T. 7 S.R. 2 W. M. D. B, & M.,
SANTA CLARA COUNTY, CAUFORNIA", WHICH SAID MAP WAS FILED FOR RECORD IN THE
OFFICE OF THE RECORDER OF~'rHE COUNTY OF SANTA ClARA, CAUFORNIA ON AUGUST 6,
o 1951 IN BOOK 34 OF MAPS, AT PAGE 13, '
APN: 362-31-004
first American Title
24 - 22
,>
Order Number: 4316-2852944
Page Number: 7
NOTICE
Section 12413.1 of the California Insurance Code, effective January 1, 1990, requires that any title insurance
company, underwritten title company, or controlled escrow company handling funds in an escrow or sub-escrow
capacity, wait a specified number of days after depositing funds, before recording any documents in connection
with the transaction or disbursing funds, Th.~s statute allows for funds deposited by wire transfer to be disbursed
the same day as deposit. In the case of cashier's checks or certified checks, funds may be disbursed the next day
after deposit In order to avoid unnecessary delays of three to seven days, or more, please use wire transfer,
cashier's checks, or certified checks whenever possible,
If you have any questions about the effect of this new law, please contact your local First American Office for
more details. '
'i
first American Title
24 - 23
Order Number: 4316-2852944
Page Number: 8
EXHIBIT A
UST OF PRINTED EXCEPTIONS AND EXClUSIONS (BY POLICY TYPE)
1, CAUFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY. 1990
SCHEDULEB
EXCEPTIONS FROM OOVERAGE
This pOlicy does not Insure agalnst loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of:
1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on
real property or by the public records, Proceedings by a public agency which may result in taxes or assessments, or notice of such
proceedlngs, whether or not shown by the records of such agency or by the public records.
2, Any facts, rights, Interests, or claims which are not shown by the public records but which could be ascertained by an inspection of the land
or which may be asserted by persons in possession thereof,
3, Easements, liens or encumbrances, or dalms thereof, which are not shown by the public records.
4. Discrepancies, conflicts In boundary Unes, shortage in area, encroachments, or any OCher facts which a correct survey would disclose, and
which are not shown by the public records,
5, (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the ~nce thereof; (c) water rights, claims
or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the public records,
EXCLUSIONS FROM COVERAGE
The following matters are expressly exduded froin the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or
expenses which arise by reason of:
}, (a) Any law, ordinance or governmental regulation (induding but not limited to buUding and zoning laws, ordinances, or regulations)
restrict:ing, regulating, prohibiting or relating to (I) the occupancy, use, or enjoyment of the land; (Ii) the character, dimensions or location of
any improvement now or hereafter erected on the land; (Ui) a separation In ownership or a change in the dimensions or area of the land or
any parcel of which the land Is or was a part:; or (tv) environmental protection, or the effect of any violation of tf'\ese laws, ordinances or
governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance
resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy,
(b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exerdse thereof or a notice of a
defect, lien or encumbrance resulting from a violation or alleged vlolatien affecting the land has been recorded in the public records at Date
of Policy,
2, RIghts of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding
from ooverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without
knowledge.
3, Defects, liens, encumbrances, adverse dalms or other matters~ .
(a) whether or not recorded in the public rE!CXlrds at Date of Policy, but created, suffered, assumed or agreed to by the insured daimant;
(b) not known to the Company, not recorded in the public records at Date of PolicY, but known to the Insured dalmant and not disclosed In
writing to the Company by the Insured daimant prior to the date the Insured claimant became an Insured under this policy;
(c) resulting In no loss or damage to the insured dalmant;
(d) attaching or aeated subsequent to Date of Policy; or
(e) resulting in loss or damage which would not have been sustained if the Insured claimant had paid value for the insured mortgage or for
the estate or Interest insured by this policy.
4, Unenforceablllty of the lien of the insured mortgage because of the inabaity or failure of the Insured at Date of Policy, or the lnablllty or
failure of any subsequent owner of the Indebtedness, to comply with applicable "doing business" laws of the !>tate in which the land Is
situated,
5, Invalidity or unenforceability of the lien of the insLl'ed mortgage, or dalm thereof, which arises out of the transaction evidenced by the
insured mortgage and is based upon usury or any consumer aedlt protection or truth in lending law,
6. Any dalm, which arises out of the transaction vesting In the insured the estate or Interest insured by their policy or the transaction aeatlng
the interest of the insured lender, by reason of the operation of federal bankruptcy, state Insolvency or similar aeditors' rights laws,
2. AMERICAN LAND TITLE ASSOCIAnON OWNER'S POUCY FORM B - 1970
SCHEDULE OF EXCLUSIONS FROM COVERAGE
1. Any law, ordinance or goverOmental regulation (induding but not limited to building and zoning ordinances) restricting or regulating or
prohibiting the occupancy, use or enjoyment of the land, or regulating the character, dimensions or location of any improvement now or
hereafter erected on, the land, or prohibiting a separation in ownership or a reduction in the dimensions of area of the land, or the effect of
any violation of any such law, ordinance or governmental regulation, '
2, Rights of eminent domain or governmental rights of police power unless notice of the exercise of such rights appears in the pubiic records at
Date of Policy,
3, Defects, liens, elKlJmbrances, adverse dalms, or other matters (a) created, suffered, assumed or agreed to by the insured dairnant; (b) not
known to the Company and not shown by the public records but known to the insured daimant either at Date of PerleY or at the date such
daimant acquired an estate or interest Insared by this policy and not disclosed In writing by the insured daimant to tlie Company prior to the
date such insured claimant became an insured hereunder; (c) resulting in no loss or damage to the insured claimant; (d) attaching or
first American Title
24 - 24
"
Order Number: 4316-2852944
Page Number: 9
aeated subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained If the Insured daimant had
paid value for the estate or interest insured by this policy.
3. AMERICAN LAND TITLE ASSOCIATION OWNER'S POUCY FORM B . 1970
WITH REGIONAL EXCEmONS
When the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth
in paragraph 2 above are used and the following exceptions to coverage appear in the policy. '
SCHEDULE B
This policy does not iASure against loss or damage by reason of the matters shown in parts one and two following:
1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes Dr assessments on real
property or by the public records,
2. Any facts, rights, Interests, or dalms which are not shown by the public records but which could be ascertained by an inspection of said land
or by making inquiry of persons In possession thereof,
3. Easements, dalms of easement or encumbrances which are not shown by the public records.
4. Disaepancies, conflicts in boundary lines, shortage in area, enaoachments, Dr any ,other facts which a correct survey would disclose; and
which are not shown by public records.
S. Unpatented mining dalms; reseMtions or exceptions In patents or in Acts authorizing the issuance thereof; water rights, claims or title to
water,
6. Any lien, or right to a lien, for servk:es, labor or material heretofore or hereafter furnished, Imposed by law and not shown by the public
records.
4, AMERICAN LANDTIT1:E ASSOCIATION LOAN POUCY - 1970
WITH A.L T.A. ENDORSEMENT FORM 1 COVERAGE
SCHEDULE OF EXCLUSIONS FROM COVERAGE
1. Any law, ordinance or governmental regulation (including but not limited to building and zoning ordinances) restricting or regulating Dr
prohibiting the occupancy, use or enjoyment of the 1ancI, or regulating the character, dimensions or location of any Improvement now or
hereafter erected on the land, or prohibiting a separation In ownership or a reduction in the dimensions or area of the land, or the effect of
any violation of any such law ordinance or governmental regulation.
2, Rights of eminent domain or governmental rights of police power LBlless notice of the exercise of such rights appears In the publ'lC records at
Date of Policy,
3. Defects, liens, encumbrances, adverse claims, or other rna~ (a) aeated, suffered, assumed or agreed to by the insured claimant, (b) not
known to the Company and not shown by the public records but Imown to the Insured claimant either at Date of Policy or at the date such
claimant acquired an estate or interest Insured by this policy or acquired the insured mortgage ancl not disclosed in writing by the Insured
claimant to the Company prior to the date such insured dalmant became an Insured hereunder, (c) resulting In no Joss or damage to the
insured claimant; (d) attaching or aeated su~uent to Date of Policy (except to the extent insurance is afforded herein as to any statutory
rlen for labor or material or to the extent insurance is afforded herein as to assessments for street Improvements under construction or
completed at Date of Policy),
4, Unenforceability of the lien of the insured mortgage because of failure of the Insured at Date of Policy or of any subsequent owner of the
Indebtedness to comply with applicable "doing business" laws of the state in which the land is situated.
5, AMERICAN LAND TITLE ASSOCIATION LOAN POUCY - 1970
WITH REGIONAL EXCEPTIONS
When the American laM Title Association lenders Policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy, the exclusions
set forth In paragraph 4 above are used ancl the foUowing exceptions to coverage appear in the policy.
SCHEDULE B
This policy does not Insure against loss or damage by reason of the matters shown in parts one and two following:
1, Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real
property or by the public records, '
2, Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an Inspection of said land
or by making InquirY of persons In possession thereof.
3. Easements, claims of easement or encumbrances which are not shown by the public records.
4, Dlsaepandes, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and
which are not shown by pubrlC records. , '
5, Unpatented mining dalmSj reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, daims or title to
water.
6, Any Den, or right to a Den, for serVices, labor or material theretofore or hereafter furnished, imposed by law and not shown by the publiC.
records,
first American Title
24 - 25
"
Order Number: 4316--2852944
Page Number: 10
6, AMERICAN lAND TITLE ASSOCIATION LOAN POUCY - 1992
WITH A.L. T.A. ENDORSEMENT FORM 1 COVERAGE
EXCWSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage eX this poIlcy and the Company wID not pay Joss or damage, costs, attorneys' fees or
expenses whlch arise by reason of:
1. (a) Any law, ordinance or governmental regulation (induding but not limited to building and zoning laws, ordinances, or regulations)
restricting, regulating, prohibiting or relating to (I) the OCQIpancy, use, or enjoyment of the land; (II) the character, dimensions or location of
any improvement now or hereafter erected on the land; (iii) a separation In ownership or a change in the dimensions or area of the land or
any parcel of which the land Is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or
governmental reg ulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance
resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy;
(b) Any governmental police power not exduded by (a) above, except to the extent that a notice of the exercise thereof or a notice eX a
defect, 6en or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date
, of Po6cy.
2. RIghts eX eminent domain unless nol:ice of the exercise thereof has been recorded in the publJc records at Date of Policy, but not excluding
from coverage any taking which has OCOJrred prior to Date of Policy which would be binding on the rights of a purchaser for value without
knowledge.
3, Defects, liens, encumbrances, adverse daims, or other matters:
(a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant;
(b) not known to the Company, not recorded In the public records at Date of Policy, but known to the insured dalmant and not disclosed In
writing to the Company by the insured claimant prior to the date the Insured claimant became an insured under this policy;
(c) resulting In no Joss or damage to the i'lsured daimant;
(d) attaching or created subsequent to Date of Policy (except to the extent that this policy Insures the priority of the lien of the Insured
mortgage over any statutory lien for services, labor or material or the extent insurance Is afforded herein as to assessments for street
improvements'under construction or completed at date eX policy); or
(e) resulting in loss or damage which would not have been sw.1:ained If the insured claimant had paid value for the Insured mortgage.
4, Unenforceabl6ty of the lien of the insured mortgage because eX the inability or failure of the Insured at Date of Policy, or the inability or
fanure of any subsequent owner d the indebtedness, to comply with the applicable "doing business" laws of the state in which the land is
situated.
5. Invalidity or unenforceabirlty of the lien of the insured mortgage, or daim thereof, which arises out d the transac:tIon evidenced by the
insured mortgage and Is based upon usury or any consumer aedit protection or truth in lending law.
6, Any statutory lien for services, labor or materials (or the claim of priority of any statutory lien for services, labor or materials over the lien of
the insured mortgage) arlsln~ffrom an improvement or work. related to the land which Is contracted for and commenced subsequent to Date
d Policy and is not financed in whole or In part by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy
the insured has advanced or is obligated to advance.
7. Any claim, which arises out of the transaction creating the interest of the mortgagee insured by this policy, by reason of the operation of
federal bankruptcy, state insolvency, or similar aedItors' rights laws, that Is based on:
(i) the transactlon creating the interest of the Insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer; or
(ii) the subordination of the interest of the Insured mortgagee as a result of the application of the doctrine eX equitable subordination; or
(iil) the transaction creating the interest of the iruued mortgagee being deemed a preferential transfer except where the preferential
transfer results from the failure:
(a) to timely record the instrument of transfer; or
(b) of such recordation to impart nol:ice to a plCChaser for value or a judgment or lien creditor,
7, AMERICAN LAND TITLE ASSOCIATION LOAN POUCY - 1992
WITH REGIONAL EXCEPTIONS
When the American land Tll:Ie AssocIation policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth
in paragraph 6 above are used and the following exceptions to coverage appear in the policy,
SCHEDULE B
This policy does not insure against loss or damage (and the company will not pay costs, attorneys' fees or expenses) which arise by reason of:
1. Taxes or assessments which are not shown as existing liens by the records d any taxing authority that levies taxes or assessments on real
property or by the public records.
2, Any facts, rights, interests, or daims which are not shown by the public records but which could be ascertained by an Inspection of said
land or by making inquiry of persons in possession thereof.
3, Easements, daims of easenient or encumbrances which are not shown by the public records.
4. Discrepancies, contrlcts In boundary lines, shortage In area, encroachments, or any otherJacts which a correct survey would disclose, and
which are not shown by public records,
5. Unpatented mining claims; reservations or exceptions In patents or In Acts authorizing the issuance thereof; water rights, claims or title to
water,
6. MY lien, or right to a lien, for services, labor or material theretofore or hereafter furnished, imposed by law and not shown by the public
rerords,
8, AMERICAN lAND TITLE ASSOCIATION OWNER'S POUCY - 1992
first American Title
24 - 26
Order Number: 4316-2852944
Pag,e Number: 11
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy and the Company will not pay ,loss or damage, costs, attomeys' fees or
expenses which arise by reason of:
1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations)
restrict:in9. regulating, prohibiting or relating to (i) the OCaJpancy, use, or enjoyment of the land; (II) the character, dimensions or location of
any improvement now or hereafter erected on the land; (iii) a separation In ownership or a change in the dimensiOns or area of the land or
any parcel of which the land is or was a part; or (iv) envlro.nmental protection, or the effect of any violation of these laws, ordinances or
governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance
resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy.
(b) Any governmental police power not exduded by (a) above, except to the extent that a notice of the exerdsethereof or a notice of a
defect, lien or enOJmbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date
of Policy.
2. Rights of eminent domain unless notice of theexerdse thereof has been recorded in the public records at Date of Policy, but not excluding
from coverage any taking which has OCaJrred prior to Date of PolIcy which would be binding on the rightS of a purchaser for value without
knowledge,
3, Defects, liens, encumbrances, adverse dalms, or other matters:
(a) created, suffered, assumed or agreed to by the Insured claimant;
(b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured dalmant and not disclosed in
writing to the Company by the insured daimant prior to the date the insured daimant became an insured under this policy;
(c) resulting in no loss or damage to the Insured claimant;
(d) attaching or created subsequent to Date of Policy; or
(e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured
by this policy.
4, Any daim, which arises out of the transaction vesting In the insured the estate or interest insured by this parleY, by reason of the operation
of federal bankruptcy, state insolvency, or similar creditors' rights laws. , that Is based on:
(i) the transaction creating the estate or interest insured' by this policy being deemed a fraudulent conveyance or fraudulent transfer; or
{bJ the transaction creating the estate or Interest insured by this parleY being deemed a preferential transfer except where the preferential
transfer results from the faUure:
(a) to timely record the Instrument of transfer; or
{blof such recordation to impart notice to a pLrChaser for value or a judgment or lien creditor.
9. AMERICAN LAND TITlE ASSOCIATION OWNER'S POUCY . 1992
WITH REGIONAL EXCEPTIONS
When the American Land TItle Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exdusions set forth
in paragraph 8 above are used and the foDowing exceptions to coverage appear In the poncy.
SCHEDULE B'
This policy does not insure against: loss or damage (and the Company will 'not pay costs, attorneys' fees or expenses) which arise by reason of:
1. Taxes or assessments which are not shown as existing liens by the records of any taxing alMoritY that levies taxes or assessments on real
property or by the public records"
2, Any facts, rights, interests, or claims which are not shown by the pubnc records but which could be ascertained by an inspection of said land
or by making inquiry of persons in possession thereof.
3. Easements, claims of easement or encumbrances which are not shown by the public records.
4, Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct surve!'f would disclose, and
which are not shown by public records.
5, Unpatented mining daims; reservations or exceptions In patents or in Ads authorizing the issuance thereof; water rights, claims or title to
water,
6, Any lien, or right to a lien, for services, labor or material theretOfore or hereafter furnished, imposed by law and not shown by the public
records,
10, AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL
TITLE INSURANCE POUCY - 1987
EXCLUSIONS
In addition to the Exceptions in Schedule B, you are not insured against loss, costs, attorneys' fees and expenses resulting from:
1, Governmental police power, and the existence or violation of any law or government regulation, This indudes building and zoning
ordinances and also laws and regulations concerning:
* laocI use * land division
* improvements on the land * environmental protection
This exduslon does not apply to violations or the enforcement of these matters which appear in the public records at Policy Date.
This exduslon does not limit the zoning coverage described in items 12 and 13 of Covered Title Risks.
2, The right to take the land by condemning it, unless:
first American Title
24 - 27
,>
Order Number: 4316.2852944.
Page Number: 10
6, AMERICAN LAND 11TLE ASSOCIAnON LOAN POUCY - 1992
WITH A,L T.A. ENDORSEMENT FORM 1 COVERAGE
EXCLUSIONS FROM COVERAGE
The following matters are expressly exduded from the coverage of this polity and the Company wiN not pay loss or damage, costs, attorneys' fees or
expenses whlch arise by reason of: .
1. (a) Any law, ordinance 01' governmental regulation (Including but not limited to building and zoning laws, ordinances, or regulations)
restricting, regulating, prohibiting or relating to (I) the occupancy, use, or enjoyment of the land; (D) the character, dimensions or location of
any Improvement now or hereafter erected on the land; (iii) a separation In ownership 01' a change in the dimensions or area of the land or
any parcel of which the land Is or was a part; or (Iv) enVlronm.ental protection, or the effect of any iIioIation of these laws, ordinances or
governmental regulations, except to the extent that a notice of the enforc:ement thereof or a notiCe of a defect, lien or encumbrance
resulting from a violation or alleged violation affecting the land has been recorded In the public rerords at Date of Policy;
(b) AIry governmental pollee power not exduded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a
defect, lien or encumbrance resulting from a Violation or alleged violation affecting the land has been recorded In the public records at Date
of Policy, .
2, Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not exdudlng
from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without
knowledge.
3, Defects, liens, encumbrances, adverse dalms, or other matters:
(a) whether 01' not recorded in the pub"c records at Date of Policy, but created, suffered, assumed or agreed to by the Insured daimant;
(b) not known to the Company, not recorded In the public records at Date of Policy, but known to the Insured daimant and not disclosed in
writing to the Company by the insured claimant prior to the date the insured dalmant became an Insured under this policy;
(c) resulting in no loss or damage to the insured claimant;
(d) attaching or created subsequent to Date of Policy (except to the extent that this policy insures the priority of the lien of the insured
mortgage over any staMory lien for servk::es, labor or material 01' the extent insurance Is afforded herein as to assessments for street
improvements under construc:tion or completed at date of policy); or
(e) resulting in loss or damage which would not have been sustained If the insured claimant had paid value for the Insured mortgage.
4. Unenforceability of the lien of the Insured mortgage because of the Inability or failure of the insured at Date of PoJjcy, or the lnabDity or
failure of any subsequent owner of the Indebtedness, to comply with the applicable 'doing buslness" laws of the state In which the land is
situated.
5, Invalidity or unenforceablllty of the lien of the Insured matgage, or claim thereof, which arises out of the transaction evidenced by the
insured mortgage and is based upon usury or any consumer aedlt protection or truth In lending law,
6, AIry statutory rlE!n for services, Jabor or materials (or the dalm of priority of any statutory lien for services, labor or materials over the Den of
the Insured mortgage) arising from an Improvement or work related to the land which is c:onl:racIEd for and commenced subsequent to Date
of Policy and is not financed In whole or in part by proc:eeds of the Indebtedness secured by the Insured mortgage which at Date of Polity
the Insured has advanced 01' is obligated to advance.
7. AIry claim, which arises oul: of the transaction creating the interest of the mortgagee insured by this policy, by reason of the operation of,
federal bankruptcy, state Insolvency, or simllar creditors' rights laws, that Is based on: .
(I) the transactiOn creating the Interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer; or
(D) the subordination of the interest of the insured mortgagee as a result of the appllc:ation of the doctrine of equitable subordination; or
(ni) the transaction creating the Interest of the Ill5lI'ed mortgagee being deemed a preferentiallransfer except where the preferential
transfer results from the failure:
(a) to timely record the instrument of transfer; or
(b) of such recordation to impart notic:e to a purchaser for value or a judgment or &en creditor.
7. AMERICAN LAND TITLE ASSOCIATION LOAN POUCY - 1992
WITH REGIONAl EXCEpnONS
When the American Land TItle Association policy is used ~ a Standard Coverage Polity and not as an Extended Coverage Policy the exduslons set forth
In paragraph 6 above are used and the following exc:eptlons to coverage appear II') the policy,
SCHEDULE B
This policy does oot insure against loss or damage (and the Company will oot pay costs, attorneys' fees or expenses) which arise by reason of:
1, Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real
property or by the public records,
2, AIry facts, rights, interests, or claims which are oot shown by the public records but which could be ascertained by an Inspection of said
land or by making inquiry of persons in possession thereof,
3, Easeinents, dalms of easement or encumbrances which are not shown by the public records.
4, Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other fads which a coirec:t survey would disclose, and
which are not shown by public records.
5, Unpatented mlning dalms; reservations or exceptions in patents or In Acts authorizing the issuance thereof; water rights, dalms or title to
Water,
6. Any lien, or right to a lien, for services, labor or material theretofore 01' hereafter furnished, imposed by law and not shown by the public
records.
B. AMERICAN lAND TITl.E ASSOCIATION OWNER'S POUCY - 1992
first American Title
24 - 28
Order Number. 4316--2852944
Page Number: 11
EXCLUSIONS FROM COVERAGE
The following matters are expressly exduded from the coverage of this polic.y and the Company wiD not pay loss or damage, costs, attorneys' fees or
expenses which arise by reason of:
1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations)
restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of
any improvement now or hereafter erected on the land; (iii) a separation in ownership or a d1ange In the dimensions or area of the land or
any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or
governmental regulations, except to t('Ie extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance
resulting from a violation or alleged vloIation affecting the land has been recorded in the public records at Date of Policy,
(b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exerdse thereof or a notice of a
defect, lien or encumbrance resulting from a violation or alleged violatiOn affecting the land has been recorded in the public records at Date
of Policy,
2, Rights of eminent domain unless notice of the ecerdse thereof has been recorded In the public records at Date of Palicy, but not exduding
from coverage any taking which has occurred prior to Date of Policy which would be binding on the,rights of a purchaser fur value without
knowledge,
3. Defects, liens, encumbrances, adverse claims, or other matters:
(a) created, suffered, assumed or agreed to by the insured daimant;
(b) not known to the Company, not recorded in the public records at Date of PaAcy, but known to the insured claimant and not disclosed in
writing to the Company by the insured daimant prior to the date the insured claimant became an insured under this policy;
(c) resulting in no loss or damage to the Insured claimant;
(d) attaching or created subsequent to Date of Policy; or
(e) resulting in loss or damage which would not have been sustained if the insured daimant had paid value for the estate or interest insured
by this polic.y.
4. Any daim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy, by reason of the operation
of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on:
(I) the transaction creating the estate or interest insured,by this pofq being deemed a fraudulent conveyance or fraudulent transfer; or
(II) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential
transfer results from the failure:
(a) to timely record the instrument of transfer; or
(b) of such recordation to impart notice to a purchaser for value or a judgment or Den creditor.
9, AMERICAN LAND TITLE ASSOCIATION OWNER'S POUCY . 1992
WITH REGIONAL EXCEPTIONS
When the American Land Title Assodation policy is used as a Standard Coverage Polley and not as an Extended Coverage Policy theexdusions set forth
in paragraph 8 above are used and the following exceptions to coverage appear in the policy.
SCHEDULE B
This policy does not insure against: loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of:
]. Taxes or assessments which are not shown as existing Dens by the records of any taxing authority that levies taxes or assessments on real
property or by the public records,
2, Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an Inspection of said land
or by making inquiry of persons in possession thereof,
3. Easements, claims of easement or encumbrances which are not shown by the public records.
4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and
which are not shown by Public. records. ' .
5. Unpatented mining daims; reservations or exceptions in patents or in I>ds authorizing the issuance thereof; water rights, claims or titJe to
water. '
6. Any lien, or right to a lien, for services, labor or material theretofore or hereafter furnished, imposed by law and not shown by the public:
records,
10. AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL
TITlE INSURANCE POUCY - 1987
EXCWSIONS
In addition to the Exceptions in Schedule B, you are not insured against loss, costs, attorneys' fees and expenses resulting from:
1. Governmental police power, and the existence or violation of any law or government regulation, This indudes bw1l;1ing and zoning
ordinances and also laws and regulations concerning:
* land use * land division
* improvements on the land * environmental protection
This exclusion does not apply to violations or the enforcement of these matters which appear in the public records at Policy Date.
This exclusion does not limit the zoning coverage described in items 12 and 13 of Covered Title Risks.
2, The right to take the land by condemning it, unless:
Rrst American Tlf:le
24 - 29
Order Number: 4316-2852944
Page Number: 12
* a notice of exercising the rlght appears in !tie public records on the Policy Date
* the taking happened prior to !tie Policy Date and is binding on you if you bought the land without knowing of the taking,
3, Title Risks:
*' that are created, anowed, or agreed to by you
*' that are known to you, but net to us, on the Policy Date - unless !tIey appeared in the public records
* that result In no Joss to you
* !tIat first affect: your title after the Policy Date ~ !tIis does not limit the labor and material lien CXlVerage In Item 8 of Covered Title Risks
4. Failure to pay value for yoLl' title.
5. lack of a right
* to any land outside the area speclflClllly cIescrIbed and referred to in Item 3 of Schedule A, or
* in streets, alleys, or waterways that touch yoW' land
ThIs exclusion does not limit the access CXlVerage in Item 5 of Covered TItle Risks,
11. EAGLE PROTECTION OWNER'S POLICY
CL TA HOMEOWNER'S POLICY OF TITLE INSURANCE - 1998
ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE - 1998
Covered Risks 14 (Subdivision Law Violation), 15 (Building Permit), 16 (Zoning) and 18 (Encroachment of boundary walls or
fences) are subject to Deductible Amounts and Maximum Dollar Umlts of Uablllty
EXCWSIONS
In addition to the Exceptions in Schedule B, you are not insured against loss, costs, attorneys' fees, and expenses resulting from:
1. Governmental police power, and the existence or violation of any law or government regulation, This indudes ordinances, laws and
regulations concemJng:
a, building b, zoning
c, land use d. Improvements on the land
e. land dMslon f. environmental protection
This exdusion does not apply to violations or the enforcement of these matters if notice of the violation or enforcement appears In the
Public Records at the Policy Date.
This exclusion does not fimlt the coverage described In Covered Risk 14,15,16, 17 or 24,
2, The failure of Your existing structures, or any part of them, to be constructed In accordance with applicable building codes. This Exclusion
does not apply to violations of building codes If notice of the violation appears in the Public Rerords at the Policy Date.
3. The right to take the Land by condemning it, unless:
a, a notice of exercising the rlght appears In the Public Records at the Policy Date; or
b, the taking happened before the Policy Date and is binding on You if You bought the land without Knowing of the taking.
4. Risks:
a, that are created, allowed, or agreed to by You, whether or not they appear in the Public Records;
b. that are Known to You at the Policy Date, but not to Us, unless they appear in the Public R~ at the Policy Date;
Co that result in no loss to You; or
d. that first occur after the Policy Date. this does not limit the coverage described in Covered Risk 7, 8,d, 22, 23, 24 or 25.
5, Failure to pay value for Your TItle.
6. laclc of a right
a, to any land outside the area spedfically described and referred to in paragraph 3 of Schedule A; and
b, in streets, alleys, or waterways that touch the land,
This exduslon does not limit the coverage described In Covered Risk 11 or 18.
LIMITATIONS ON COVERED RISKS
Your insurance for the following COVered RIsks is limited on the Owner's Coverage Statement as follows:
Covered Risk 14, 15, 16 and 18, Your DeduCtIble Amount and Our Maximum Dollar Umlt of liability shOWn In Schedule A.
The deductible amounts and maximum dollar fimils shown on Schedule A are as follows:
Your Deductible Amount
Our Maximum Dollar Umit of
~
$10,000.00
$25,000.00
$25,000,00
Covered RIsk 14: 1% of Policy Amount or $5,000.00 (whichever is less)
Covered Risk 15: 1% of Policy Amount or $5,000.00 (whichever is less)
Covered RIsk 16: 1% of Policy Amount or $5,000.00 (whichever Is less)
first American Tttle'
24 " 30
Order Number: 4316-2852944
Page Number: 13
Covered Risk 18: 1% of Policy Amount or $2,500.00 (whichever is less)
$5,000,00
12. SECOND GENERATION EAGLE LOAN POUCY AMERICAN LAND TITLE ASSOCIATION EXPANDED COVERAGE RESIDENTIAL LOAN
POUCY (10/13/01)
EXCLUSIONS FROM COVERAGE
The following matters are expressly exduded from the coverage of this policy and the Company wiU not pay loss or damage, costs, attorneys' fees or
expenses which arise by reason of:
1. (a) Any law, ordinance or governmental regulation (lnduding but nOt limited to buDding and zoning laws, ordinances, or regulations)
restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the Landi (ii) the character, dimensions or location
of any irnpr'ovement now or hereafter erected illl the Land; (iii) a separation in ownership or a change in the dimensions or area of the Land
or any parcel of which the Land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or
governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance
resulting from a violation or alleged violation affecting the Land has been recorded in the Public Remrds at Date of Policy. This exclusion
does not limit the coverage provided under Covered Risks 12, 13, 14 and 16 of this policy.
(b) Any goverNTlental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a
defect, rlen or encumbrance resulting from a violation or aUeged violation affecting the land has been recorded in the Public Records at Date
of Policy. This exduslon does not limit the coverage provided under Covered Risks 12, 13, 14 and 16 of this policy.
2. Rights of eminent domain unless notice of the ex~ thereof has been recorded in the Public Records at Date of Policy, but not excluding
, from coverage any taking which has occurred prior to Date of Policy which would be bInding on the rights of a purchaser for value without
Knowledge.
3. Defects, liens, encumbrances, adverse claims or other matters:
(a) created, suffered, assumed or agreed to by the Insured Dalmant;
(b) not Known to the Company, not recorded in the ,Public Records at Date of Policy, but Known to the InslJ'ed Claimant and not disclosed In
writing to the Company by the Insured Oaimant prior to the date the Insured Claimant became an InSW"ed under this policy;
(c) resulting in no loss or damage to the Insured Claimant;
(d) attaching or created subsequent to Date of Policy (this paragraph does not limit the coverage provided under Covered Risks 8, 16, 18,
19, 20, 21, 22, 23, 24, 25 and 26); or
(e) resulting in loss or damage which would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage.
4. Unenforceabftlty of the lien of the Insured Mortgage because of the inabirlty or failure ci the Insured at Date ci Policy, or the inability or
failure of any subsequent owner of the indebtedness, to comply with applicable doing business laws of the state in which the Land is
situated.
5. Invalidity or unenforceabillty of the lien of the Insured Mortgage, or claim thereof, which arises out of the transaction evidenced by the
Insured Mortgage and is based upon usury, except as provided in Covered Risk 27, or any COI'lSlJlTlel' credit protection or truth In lending law,
6. Real property taxes or assessments of any governmental authority which become a lien on the Land subsequent to Date of Policy. This
excJusjon does not limit the coverage provided under Covered Risks 7, 8 (e) and 26,
7. Any daim of Invalidity, unenforceabilityor lack of priority of the lien of the Insured Mortgage as to advances or modifications made after the
Insured has Knowledge that the vestee shown In Schedule A is no longer the owner of the estate or interest covered by this policy. This
exclusion does not limit the coverage provided In Covered Risk 8.
B. Lack of priority ci the Ben of the Insured Mortgage as to each and every advance made after Date of Policy, and aU interest charged
thereon, over liens, enrombrances and other matters affecting title, the existence of which are Known to the Insured at
(a) The time of the advance; or
(b) The time a modification is made to the terms of the Insured Mortgage which changes the rate of interest charged, if the rate of Interest
is greater as a result of the modification than It would have been before the modification,
This exduskln does not limit the Coverage provided in Covered Risk 8.
9. The failure of the residential structure, or any portion thereof to have been constructed before, on or after Date of Policy in accordance with
applicable building codes, This exclusion does not apply to violations of buIlding codes if notice of the violation appears in the Public Records
at Date of Policy,
, 13, SECOND GENERATION EAGLE LOAN POLICY AMERICAN lAND TITlE ASSOCIATION EXPANDED COVERAGE RESIDENTIAL LOAN
, POUCY (10/13/01)
WITH REGIONAL EXCEPTIONS
When the American Land Title Association loan policy with EAGLE Protection Added is used as a Standard Coverage Parley and not as an Extended
Coverage Polley the exclusions set: forth In paragraph 12 above are used and the following exceptions to coverage appear in the policy.
SCHEDULE B
This porley does not insure against loss or damage (and the Company wiD not pay costs, attorneys' fees or expenses) which arise by reason of:
1. Taxes or assessments which are not shown as existing rlel'lS by the records of any taxing authority that levies taxes or assessments on real
property or by the public records,
2. Any facts, rights, Interests, or daims which are not shown by the pLtllic records but which could be ascertained by an inspection of said land
or by making inquiry ci persons in possession thereof.'
first American ril:le
24 - 31
.'
Order Number: 4316-2852944
Page Number: 14
3. Easements, daims of easement or encumbrances which are not shown by the public records,
4, Disaepancies, conflicts in boundary lines, shortage in area, enaoachments, or any other facts which a correct survey would disclose, and
which are not shown by public records,
5. Unpatented mining claims; reservations or ex~ in patents or In ac3 authorizing the Issuance thereof; water rights, daims or title to
. water. '
6. Any Den, or right to a Den, for services, labor or mate:rial theretofore or hereafter furnished, Imposed by law and not shown by the public
records,
14, AMERICAN LAND TITlE ASSOCIATION LOAN POUCY - 2006
EXCLUSIONS FRO" COVERAGE
The following matters are expressly exduded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or
expenses that arise by reason of:
1. (a) Any law, ordinance, permit, or governmental regulation (lndudlng those relating to building and zoning) restricting, regulating,
prohibiting, or relating to
(i) the oa:upancy, use,. or enjoyment of the Land;
(If) the character, dimensions, or location of any Improvement erected on the land;
(In) the subdivision of land; or
(iv) environmental protection;
or the effect of any violation of these laws, ordinances, or governmental regulations, This Exdusion l(a) does not modify or Dmlt the
coverage provided under Covered Risk 5.
(b) Any governmental police power. This Exclusion l(b) d,qes not modify or limit the coverage proVided under Covered Risk 6.
2, Rights of eminent domain, This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8,
3. Defects, liens, encumbrances, adverse daims, or other matters
(a) created, suffered, assumed, or agreed to by the Insured Oalmant;
(b) not Known to the Company, not: recorded In the Public Records at Date of Policy, but Known to the Insured Oaimant and not disclosed
in writing to the Company by the Insured Oalmant prior to the date the [nsured Calmant became an Insured under this policy;
(c) resulting In no loss or damage to the Insured Claimant;
(d) attaching or aeated subsequent to Date of Policy (however, this does not modify or limit the ex>verage provided under Covered Risk 11,
13, or 14); or '
(e) resulting in loss or damage that would not have been sustained If the Insured Calmant had paid value for the Insured Mortgage,
4. Unenforceablllty of the Den of 1:tle Insured Mortgage because of the inability or failure of an Insured to comply with applicable dolng-
business laws of the state where the land is situated. ,
5. InvaDdity or unenforc:eabllity In whole or in part of the Den of the Insured Mortgage that arlses out of the transaction evidenced by the
Insured Mortgage and is based upon usury or any consumer aedlt protection or tru!h-In-Iending law.
6. Any daim, by reason of the operation of federal bankruptcy, state insolvency, or similar aeditors? rights laws, that the transaction creating
the lien of the Insured Mortgage, Is
(a) a fraudulent conveyance or fraudulent transfer, or
(b) a preferential transfer for any reason not stated in COVa"ed Risk 13(b) of this poDcy.
7, Any lien on the TltIe for real estate taxes or assessments Imposed by governmental authority and created or attaching between Date of
Policy and the date of recording of the Insured Mortgage in the PubUc Records, This Exclusion does not modify or limit the coverage
provlded under Covered Risk l1(b).
15. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY - 2006
WITH REGIONAL EXCEPTIONS
When the AmerIcan Land TItle Association poPcy Is used as a Standard Coverage Policy and net as an Extended Coverage Policy the exclusions set
forth In paragraph 14 above are used and the following exceptions to coverage appear in the policy,
SCHEDULE B
This policy does not Insure against loss or damage (and the Company wiD not pay costs, attOrneys' fees or expenses) which arise by reason of:
1. ' (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real
property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such
proceedings, whether or not shown by the records of such agency or by the Public Records.
2. Any facts, rights, interests, or daims that are not shown by the PubUc Records but that could be ascertained by an inspection of the Land or
that may be asserted by persons in possession of the Land,
3. Easements, liens or 'encumbrances, or daims thereof, not shown by the Public Records.
4, Any enaoachment, enwnbrance, violation, variation, or adverse drcumstance affecting the TItle that would be disclosed by an'acaJrate
and complete land s~ of the Land and not shown by the PublJc Records.
5. (a) Unpatented mining dalms; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims
first American TJt/e
24 - 32
"
Order Number: 4316-2852944
Page Number: 15
or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records,
16. AMERICAN lAND TITLE ASSOCIATION OWNER'S POLICY - 2006
EXCLUSIONS FROM COVERAGE
The following matters are expressly exduded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys'
fees or expenses which arise by reason of:
1. (a) Any law, ordinance, permit, or governmental regulation (lnduding those relating to building and zoning) restricting, regulating,
prohibiting, or relating to
(I) the occupancy, use, or enjoyment of the Land;
(IQ the character, dimensions, or location of any improvement erected on the Land;
(Iii) the subdivision of land i or
(Iv) environmental proted:ionior the effect of any violation of these laws, ordinances, or governmental regulations, This Exdusion l(a)
does not modify or limit the coverage provided under Covered Risk 5.
(b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6.
2, Rights of eminent domain, This Exdusion does not modify or limit the coverage provided under Covered Risk 7 or 8,
3. Defects, liens, encumbrances, adverse daims, or other matters
(a) created, suffered, assumed, or agreed to by the Insured aaimant;
(b) not Known to the Company, not recorded In thePubl,~ Records at Date of Policy, but Known to the Insured Claimant and not disclosed
in writing to the Company by the Insured Oaimant prior to the date the Insured Claimant became an Insured under this policy;
(c) resulting in no loss or damage to the Insured Oaimant;
(d) attachIng or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risks 9
and 10); or
(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title,
4. Any daim, by reason of the operation of federal bankruptcy, state Insolvency, or similar creditors? rights laws, that the transaction vesting
the TJtle as shown In Schedule A, is '
(a) a fraudulent oonveyance or fraudulent transfer; or
(b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy.
5. Any lien on the TItle for rea! estate taxes or assessments imposed by governmental authority and created or attaching between Date of
Policy and the date of recording of the deed or other instrument of transfer In the Public Records that vests Title as shown in Schedule A,
17, AMERICAN LAND mLE ASSOCIATION OWNER'S POLICY - 2006
WITH REGIONAL EXCEPTIONS
When the American Land Title Association policy Is used as a Standard Coverage Policy and not as an Extended Coverage Policy the
exclusions set forth in paragraph 16 above are iJsed and the following exceptions to coverage appear in the policy,
SCHEDULE B
This policy does not insure against loss or damage (and the Company wiD not pay costs, attorneys' fees or expenses) which arise by reason
of:
1. (a) Taxes or assessments that are not shown as existing liens by the records of any tlxing authority that ~vies taxes or assessments on real
property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such
proceedings, whether or not shown by the records of such agency or by the Public Records, '
2. Any facts, rights, interests, or claims that are not shown by the Pub6c Records but that could be ascertained by an inspection of the Land or
that may be asserted by persons in possession of the Land.
3. Easements, liens 'or enaJmbrances, or daims thereof, not shown by the Pubic Records.
4. Any encroachment, encumbrance, violation, variation, or adverse crcumstance affecting the Title that would be disdosed by an acx:urate ,
and complete land SlI'Vey of the Land and not shown by the Public Records,
5, (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims
or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records.
Rrst American Title
24 - 33
"
PRIVACY POLICY
We Are Committed to Safeguarding Customer Information
In order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand
that you may be concerned about what we will do with such information - particularly any personal or financial information. We
agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our
parent company, The First American Corporation, we have adopted this Privacy Policy to govern the use and handling of your
personal information.
Applicability
This Privacy Policy governs our use of the inforrpatlon which you provide to us. It does not govern the manner in which we may
use information we nave obtained from any other'source, such as information obtained from a public record or from another person
or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source.
First American calls these guidelines Its Fair Information Valu~ a copy of which can be found on our website at www.firstam.com.
Types of Information
Depending upon which of our services you are utilizing, the types of non public personal information that we may collect include:
· Information we receive from you on applications, forms and in other communications to us, whether in writing, in person,
by telephone or any other means;
· Information about your transactions with us, our affiliated companies, or others; and
· Information we receive from a consumer repOrting agency.
Use of Information
We request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party.
Therefore, we will not release your information to nonaffiliated parties except: (1) as necessary for us to provide the product or
service you have requested of us; or (2) as permitted by law. We may, however, store such information indefinitely, induding the
period after which any customer relationship has ceased. Such information may be used for any internal purpose, such as quality
control efforts or customer analysis, We may also provide all of the types of nonpublic personal information listed above to one or
more of our affiliated companies, Such affiliated companies include finandal service providers, such as title insurers, property and
casualty insurers, and trust and investment advisory companies, or companies involved in real estate services, such as appraisal
companies, home warranty companies, and escrow companies. furthermOre, we may also provide all the information we collect, as
described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies, or to other
finandal institutions with whom we or our affiliated companies have joint marketing agreements.
Former CUstomers
Even if you are no longer our customer, our Privacy Policy will continue to apply to you.
Confidentiality and Security
We will use our best efforts to ensure that no unauthorized parties have access to any of your information, We restrict access to
non public personal information about you to those individuals and entities who need to know that information to provide products or
services to you. We will use our best efforts to train and oversee our employees and a.gents to ensure that your information will be
handled responsibly and in accordance with this Privacy Policy and First American's Fair Information Values: We omently maintain
physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information,
@ 2001 The Rrst American Corporation . All Rights Reserved .
24 - 34
OFFICE \ COUNTY
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Attachment E
City of Cupertino
Insurance Requirements Summary
The insurance requirements detailed in this summary are provided only has examples, all
insurance coverage will be subject to the City's approval and is subject to change. This
summary is provided in order to assist developers in preparing an estimated project budget for
the Cleo Avenue Affordable Housing Development proposal and is not intendyd to be a complete
listing of all of the City's insurance requirements.
If a ground lease is proposed on the site, the selected developer shall be required to obtain and
maintain at all times during the duration of the, the following insurance:
. Commercial General Liability insurimce in the amount of $2 million per occurrence and
Automobile Liability inSurance in the amount of $1 million per occurrence.
. A Standard All-Risk Policy excluding earthquake and flood, on the contents and
betterments and personal property contained within or on the premises. The coverage
shall be for not less than 90 percent of the replacement value of the property and
betterments and not less than 90 percent of the actual cash value of the personal property.
The City shall be named as an addition~ insured and loss payee.
The following insurance shall be maintained through the duration of construction and until the
issuance of a Certificate of Occupancy:
. Commercial General an<,l Automobile Liability insurance in the amount of $5 million per
occurrence and the City shall be an additional insured.
. . Standard Builder's Risk Coyerage in an amount equal to the Construction Cost Estimate.
This policy must also contain Difference in Condition (DIC) coverage.,
All insurance provided must be placed with insurance companies admitted in California with a
current Best Rating of A:VIII, unless otherwise acceptable to the City.
24 - 36
ALLISON LA BARREARE
BARRY SWENSON BUILDERS
777 N FIRST STREET 5TH FL
SAN JOSE CA 95112 '
TOM EARLEY
BRIDGE HOUSING CORP
345 SPEAR ST SillTE 700
SAN FRANCISCO CA 94105
MA TfHEW STEINLE
ECUMENICAL ASSOC FOR HOUSING
2169 E FRANCISCO BLVD SUITE B
SAN RAFAEL CA 94901
JEFF OBERDORFER
FIRST COMMUNITY HOUSING CORP
75 E SANTA CLARA ST SUITE 1250
SAN JOSE CA 95113
SMITHA SESHADRI
DIRECTOR OF DEVELOPMENT
HOUSING AU1;1IORITY OF THE SCC
505 WEST JULIAN STREET
SAN JOSE CA 95110
JANET FALK
MERCY CHARITIES HOUSING OF CA
1360 MISSION STREET, SUITE 300
SAN FRANCISCO CA 94103
CATHY ARREGUIN
OLSON COMPANY
3020 OLD RANCH PKWY #400
SEAL BEACH CA 90740
GEORGE ~IGHT.
PENN HABITAT FOR HUMANITY
690 BROADWAY STREET
REDWOOD CITY CA 94063
ROBERTFREIRI
S V HABITAT FOR HUMANITY
513 VALLEY WAY
MILPITAS CA 95035
DAVID NEALE
THE CORE COMPANIES
470 SOUTH MARKET ST.
SAN JOSE, CA 95113
,-
CAROL GALANTE
PRESIDENT
BRIDGE HOUSING CORP
345 SPEAR ST SUITE 700
SAN FRANCISCO CA 94105
CHRIS BLOCK
CHARITIES HOUSING
465 SOUTH FIRST STREET
SAN JOSE CA 95113
ANDREA PAP ANASTASSIOU
MID-PENINSULA HOUSING
303 VlNTAGE PARK DR #250
FOSTER CITY CA 94404
ALEX SANCHEZ
DIRECTOR
HOUSING AUfHORITY OF THE SCC
505 W JULIAN STREET
SAN JOSE CA 95110
',,]
JOSE VASQUEZ 1R
DIRECTOR OF CHD
MACSA
130 N JACKSON AVE
SAN JOSE CA 95116
FRAN WAGSTAFF
MID-PENINSULA HOUSING
303 VINTAGE PARK DR #250
FOSTER CITY CA 94404
MARLENE PRENDERGAST
PALO ALTO HOUSING CORP
725 ALMA STREET
PALO ALTO CA 94301
TUNG T TRAN
ROEM CORPORATION
1650 LAFAYETTE STREET
SANTA CLARA CA 95050
DENIISLALOR
SOUTH COUNTY HOUSING CORP
9015 MURRAY AVE SUITE 100
GILROY CA 95020
SUSANNA P AU
SANDHILL PROPERTIES
30E.4THAVE
SAN MATEO, CA 94401
JESSE WU
PROJECT DIRECTOR
BRIDGE HOUSING CORP
345 SPEAR ST SUITE 700
SAN FRANCISCO CA 94105
RQN MORGAN
COMMUNITY HOUSING
DEVELOPERS
255 N MARKET ST SUITE 290
SAN JOSE CA 9511 0
LINDA MANDOLINI
EXECUTNE DIRECTOR
EDEN HOUSING INC
409 JACKSON STREET
HAYWARD CA 94544
EMILY NEFF
HOUSING AUTHORITY OF THE see
505 WEST JULIAN STREET
SAN JOSE CA 95110
OLIVIA MENDIOLA
CHIEF EXECUTIVE OFFICER
MACSA
130 N JACKSON AVE
SAN JOSE CA 95116
LARRY DEL CARLO
MISSION HOUSING DEV CORP
474 VALENCIA ST SUITE 280
SAN FRANCISCO CA 94103
. EDHAYES
PENN HABITAT FOR HUMANITY
690 BROADWAY STREET
REDWOOD CITY CA 94063
JENNIFER SIMMONS
S V HABITAT FOR HUMANtrY
513 VALLEY WAY
MILPITAS CA 95035
WILL mOMPSON
mOMSON DORFMAN RESIDENTIAL
39 FORREST STREET, SUITE 201
MILL VALLEY, CA 94941
DEBORAH RUANE
FAIRFIELD PROPERTIES
5510 MOREHOUSE DRIVE, #200
SAN DIEGO, CA 9212i4 - 37
DEBBIE PARKER
HOUSING FOR INDEPENDENT
PEOPLE
481 VALLEY WAY
MILPITAS, CA 95035
LISA JACKSON
HOUSING CHOICES COALITION
30 LAS COLINAS LANE
SAN JOSE, CA 95119
SANDRA JAMES
21614 LA PLAYA COURT
CUPERTINO, CA 95014
JAMES MORLEY
JSM ENTERPRISES
PO BOX 9706
SAN JOSE, CA 95157
Wll..LIAM WITTE
RELATED COMPANIES OF
CALIFORNIA
18201 YON KARMAN AVENUE, #9'
IRVINE, CA 92612
CHRISTINE GIUSIANA
CUPERTINO CHAMBER OF
COMMERCE
20455 SIL VERADO AVENUE
CUPERTINO, CA 95014
ERIC MORLEY
MORLEY BROS LLC
99 ALMADEN BL YD, SUITE 720
SAN JOSE, CA 95113
TOM COOK
NEIGF@ORHOOD HOUSING SERVICES
SILICON VALLEY
1156 NORTH 4TH STREET
SAN JOSE, CA 95112
24 - 38
,>
Habitat
for Humanity@
Silicon Valley
October 17,2007
Vera Gil
Community Development Department
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
.~ ;.
Dear Ms. Gil,
Thank you for the opportunity to respond to the City of Cupertino's request for a proposal for an
affordable housing development located on Cleo Avenue.
1 a. Explain why your agency should be chosen for this project.
Habitat for Humanity Silicon Valley (HfHSV) is the best choice for the Cleo Avenue project because:
· We are able to help meet the City of Cupertino's affordable housing goals by providing
ownership housing opportunities to families with very low incomes.
· HfHSV has a rigorous selection process for our homeowners and we continue to partner with
families for the life of the ownership of their Habitat home.
· HfHSV provides our homeowners with a 30-year no-interest loan.
· HfHSV projects are a wonderful opportunity to promote volunteerism in the City of Cupertino.
80% of the labor on a HfHSV home is provided by volunteers.
· The Cleo Avenue project will be "green." We will seek a GreenPoint certification on this project.
· HfHSV requires a very low subsidy. We are asking the City of Cupertino for $200,000 in
addition to land for development fees and site work.
HfHSV was established in 1986 as an affiliate of Habitat for Humanity International. Serving Santa Clara
County (one of the least affordable regions in the nation), our mission is to work with the community to
provide very low-income families the opportunity to build and own their own homes, thus helping to
break the cycle of poverty. We are unique among affordable housing developers in the region in our focus
on home ownership (as contraSted to rental housing) and in our focus on housing for very low-income
families (i.e., families with incomes between 30% and 50% of the local median income). We believe that
our ability to provide ownership opportunities to families with very low incomes makes HfHSV the best
choice for the Cleo Avenue property.
24 - 39
513 Valley Way Milpitas, CA 95035 (408) 942-6444 Fax (408) 942-6446 www.habitatsanjose.org
Page 1
~'~ Habitat
;, , " ~?~ H~m~aitf
:':'I!I":.J1i '1i~!I'?r
Development Proposal Cleo Avenue
Cover Letter Page 2
Our focus on home ownership is intentional: home ownership enables families to move out of poverty
and toward self-sufficiency, With their housing expenses capped at 30% oftheir income, families are
able to spend funds on health care, nutritional needs, and other individual family needs, as well as save
funds for their children's future education. The easing of financial concems means that parents will have
more time and energy to spend with their children and be able to provide a more emotionally-supportive
environment. Additionally, the stability of home ownership means children can stay in one school district
as well as have their own space to study and learn, The benefits to children are pronounced: children of
homeowners tend to stay in school longer, have higher test scores, and have fewer behavior problems in
school. Our data support this; two-thirds of the college-aged children in our fan1ilies have enrolled in
college, which is dranlatically higher than the college-enrollment rate for children from low-income
fanlilies nationwide (49,6%).
1 b. Provide a short summary of how your agency would accomplish the City's design concept on the
site, including, type of constructi.on, design issues, and any other key aspects to your approach.
We are very excited by the Cleo Avenue design. The Cleo Avenue design is exactly the type of project
HfHSV is best at building. Your concept incorpOrates a simple, decent design that is perfect for volunteer
labor. In addition we are currently working with your architect, the KTGY Group, mc" on a similar
design for a six-home project in Morgan Hill. KTGY has been a pleasure to work with. We look forward
to the opportunity to continue working with them.
One of the key aspects of the HfHSV approach is family members and the community coming together to
build homes. HfHSV works closely with the architect, the City, and our volunteers on simple, decent
designs that fit in seamlessly with the neighborhood. HfHSV uses approximately 80% volunteer labor.
All the architecture and engineering work is subcontracted to professionals. On the Cleo Avenue site we
also anticipate subcontracting all the underground and street work. The remainder of the work will be
perfonned by volunteers supervised by a licensed contractor.
HfHSV will target Cleo Avenue as a GreenPoint Rated (w\\I\v.builditgreen,org) project. The project will
incorporate "green" building techniques, maximizing energy efficiency and sustainabiIity. For example:
. Each home will have solar panels installed to provide electricity.
. We will reduce the amount of lumber by using 2x4 studs on a 24-in center :framing, and use
engineered lumber and insulated, engineered door and window headers.
. We will explore using green concrete and paving materials, For example, we will use concrete
containing fly-ash and permeable paving materials in the parking areas to allow rain water to
retum to the water table,
. Fluorescent lighting fIxtures and bulbs will be installed throughout.
24 - 40
"~ Habitat
I , " for f{umaniW
5iii':'UJl \'~li~~\l
Development Proposal Cleo Avenue
":;over Letter Page 3
1 c. Explain any financial support requested from tire City of Cupertino and tire reason for this request
HfHSV is asking for $200,000 in addition to land to cover development fees and a portion oftbe site
work. This funding, in addition to the land, will enable HfHSV to sell the homes to families in the very
low-income range. .
Again. thank you for the opportunity to provide the City of Cupertino with a proposal to develop
affordable housing on the Cleo Avenue site, Cupertino is a wonderful city and we look forward to
working with you on this exciting project.
Sincerely,
~ . ~. .
~ER SIMMONS
Project Development Manager
24 - 41
<:~ Habitat
;:, , " fot Humanl!');'
Silkup. Viilb'
,-
Development Proposal Cleo Avenue
Page 1 of 11
PROPOSAL
2, EXPERIENCE OF AGENCY
2a. Describe the agency's experience in affordable housing development and particularly family-
housing developmenL
Over the past twenty years HfHSV has developed a solid track record of accomplishment:
.
We have successfully completed builds in San Jose, Los Gatos, Campbell, Alviso, and Santa
Clara, resulting in a total of38 new homes completed through mid-2007.
We have secured additional properties in the cities of Santa Clara, San Jose, and Morgan Hill,
which will allow us to construct 19 more homes in 2007-09; we are also negotiating with the
cities of Santa Clara and Mountain View on sites that will allow us to build an additional 31
homes.
We have assisted 70 very low-income adults in achieving home ownership, helping to ensure a
secure and stable home environment for, 116 children. Another 13 very low-income families are
currently working on constructing their homes or are ready (and anxious!) to begin, with six more
remaining to be selected. A further indicator of our success is that two-thirds of the children aged
18-23 in our families have gone on to enroll in college, which is significantly higher than the
college-enrollment rate for children from low-income families nationwide.
We have leveraged funds raised with pro bono services and donated materials to keep our costs
significantly lower than other builders; thus we are able to make homeowners of families earning
less than 50% of median income.
We have developed the organizational capacity for planning and executing the construction of
affordable homes. We have the ability- to manage multiple projects at one time, a team of
experienced site supervisors to draw fro~ and a volunteer pool of over 15,000 of whom 150 are
"regular" volunteers who work 2-3 times a week. ,
We have increased our building knowledge to include townhomes and condominiums.
We have established two Homeowner's Associations (HOAs) and trained the families on how to
participate in and run an HOA.
.
.
.
.
.
.
In short, Habitat for Humanity Silicon Valley provides a valuable resource to local communities and
developers sharing our goal of increasing the anlount of affordable housing available in the County.
2b. Provide descriptions of up to five affordable family rental projects build and l1umaged by the
jirm(s), including the last independent audit report and auditor management letters issuedfor tlte
two most current projects.
Not applicable as HfHSV provides ownership housing.
2c. Provide at least three references from City or County staff involved with projects completed in the
last three years.
24 - 42
<~ Habitat
I;, , " for H~lmilnlty'
SlJl..:m\'cliey
Development Proposal Cleo Avenue
2age 2 of 11
Jeffrey B. Pedersen
City of Santa Clara
Housing and Community
Services
Division Manager
1500 Civic Center Drive
Santa Clara, CA 95050
(408)615-2491
jpe-de,J'sen(~ci .santa-clara.ca, us
"
Brandi Oka Hoffinan
City of San Jose
Housing Department
Homebuyer Program Manager
200 East Santa Clara St.
San Jose, CA 95113
( 408)~:35-8232
brandi.hoffman-
ookar7.V.sanioseca.Q:ov
Keith Gaxiola
City of San Jose
Public Works
200 East Santa Clara St.
San Jose, CA 95113
(408) 535-6896
keith, gaxi ola(a)sanioseca, !WV
2d. Provide independent audit reports of the agency for the last three years and any management
letters issued as part of these audits.
Please see Attachment I, our independent audit.reports for fiscal years 2004-05 and 2005-06. The 2006-
07 audit will be completed in December 2007, at which time it will be provided to Ms, Gil.
2e. Describe any awards conferred on the agency for the design, construction, or management of
affordable housing projects.
In 2007 HfHSV received a 4-star rating from Charity Navigator for sound fiscal management for its
ability to efficiently manage and grow its finances. Less than a quarter of the charities evaluated have
received a 4-star rating. Charity Navigator's highest rating.
hI 2004 Habitat for Humanity Silicon Valley and Silicon Valley Power received tbe Acterra Business
Environmental Award for Social Equity and Sustainability. The project demonstrated renewable energy
generation, something usually enjoyed only by affluent homeowners, to lower income customers. .
In 2004 HfHSV constructed three homes on Gianera Street in Santa Clara, TIle City of Santa Clara was
so pleased with the quality oftlle families as well as the quality oftlle homes, that in 2006 they provided
Habitat Silicon Valley with $980,000 to purchase the adjacent property in order to construct six additional
homes.
HfHSV has received a large number offmancial awards such as Thrivent Financial for Lutherans. Lowes,
The Valley Foundation, Lions International, Employees of Network Appliance, the Myra Reinhard
Family Foundation, eBay, Coherent, Lockheed-Martin, Cisco, Intel, and numerous other gifts from
individuals, foundations, and corporations. The diversity and range of our funding sources and amount of
gifts is a testament to the community's support to our mission of providing simple, decent homes to
deserving, hard-working families, and building a sense of community in the process.
3. EXPERIENCE OF DEVELOPMENT TEAM
30. Describe the development team, and identify the Project Manager and members of the project
team.
24 - 43
<iff;' '., U ,bOt t.
.,' .' n3 ( al
I,. ;' for Humanity'
::-i!i ::m \:an~~'
Development Proposal Cleo Avenue
Page 3' of 11
3b. Provide the qualiji.catiQns of team members and discuss their related work experience.
Silicon Valley Habitat for Humanity is a 50 1 (c)(3) non-profit organization. General management
responsibility rests with our Executive Director, Robert Freiri. A small group of core staffworks under
his direction:
. The Project Development Manager is responsible for building site acquisition and development
through the issuance ofpermits."
. The Construction Project Manager provides support for on-site construction at multiple locations
and oversees planning for future construction projects.
. The CommWlity Services Director is responsible for family selection and support, as well as
tracking the mortgage payments from the families. This department organizes all family trainings
and partners with the families after they move into their homes.
. TIle Volunteer Coordinator is responsible for recruiting and scheduling volunteers (both
individuals and groups), with a goal of 20-25 volWlteers per day per building site.
. The Resource Development Director is responsible for generating the financial and in-kind
resources necessary to support the construction projects,
Separate committees made up of community volunteers share responsibility for Family SelectioI4 Family
Partnership, and Construction. The staff and committees are complemented by an extended network of
volunteers who work in the office and/or on the construction sites.
Jennifer Simmons, Project Development Managerj will lead our development team. Jennifer will act as
the liaison between the City of Cupertino and HfHSV for design, entitlements, permits, fmancial
development, and family selection. Jennifer has been with our organization for 2 years and is responsible
for taking projects from the acquisition through entitlements, design, and permitting, Over the past two
years she has completed two acquisitions and taken three projects through entitlements and permits. Prior
to joining HfHSV, Jennifer worked for 7 years in facility management and commercial construction and
for 5 years as a policy analyst to local elected officials. Jennifer has a Bachelor's degree is in Political
Science.
All HfHSV building projects are carried out under the general supervision of Bill Schworer, our
Construction Project Manager. Bill will work closely with Project Development on design and site
development so there is a seamless transition from development to construction. Bill has considerable
expertise in the planning and management of home construction projects, having been President of his
own construction company for fifteen years as well as Division President for Kauffinan & Broad (now
KB Homes) and for Ponderosa Homes. As Construction Project Manager Bill is responsible for
coordinating reS01ll'CeS and activities (e,g., purchasing) across construction projects as well as general
oversight of the individual projects.
Keny Edmonds is the Community Services Director and has been with the organization for 5 years.
Keny oversees the selection and long-term partnership of our Habitat families. She closely monitors the
families from the time of selection to the completion on the construction of the family's home. During
the past 5 years, Kerry has been involved in the selection of 28 of our 51 Habitat families and currently is
in the selection process of 6 additional partner families. Prior to working for HfHSV she was employed
by another non-profit agency providing service to individuals in need of employment and other social
services.
24 - 44
,-
<'~ Habitat
" , 'l !Clr H~~,l'lrlit)"
.:.,fl"_Ur. '.ihj::l'
Development Proposal Cleo Avenue
2age 4 of 11
Kathy Miller, Resource Development Director, is responsible for raising funds for the Habitat's local
programs and projects. Kathy has been with Habitat for seven months and has 6 years of experience in
nonprofit fundraising, including over 4 years at the American Red Cross where she directed local,
national, and international fundraising efforts. Kathy also has over 20 years of experience in the for-profit
world, including four years ill corporate philanthropy in the semiconductor industry and 15 years in the
defense industry. Kathy holds a B.S. in Organizational Behavior from the University of San Francisco. .
On-site management and supervision is provided by a full-time Site Supervisor who is a paid professional
contractor. HfHSV has a team of three professional contractors who work as site supervisors on our build
projects. In addition, we also have a crew of AmeriCorps members who work full time for one to two
years on our projects. They are trained under the direction of the site supervisor to lead groups of
volunteers. Other than subcontractors (e.g., for grading, pouring the foundations, etc.) all other on-site
labor is provided by volunteers~ on a given day there will be 20-25 volunteers on site. Project team
leaders (also volunteers) each work with teams of 4-5 volunteers to train them in the task(s) of the day
and coordinate their efforts.
4. PROJECT APPROACH
4a. Provide a narrative on the development team's approach to the project, responding to the
development issues oudined in this RFP.
i. Property Ownership/City Assistance (key Issue)
HfHSV is requesting $200,000 in addition to land to cover development fees and a portion of the site
work. This funding enables HfHSV to sell the homes to families in the very low-income range. We
would like these funds in the form of a long-term loan that is forgiven over the 30-year ownership period.
Success of the HfHSV model is based on the donation of land and funding toward the development fees;
we then raise the remainder of the funds necessary to complete the project at a selling price that is
affordable to families earning between 30% and 50% Median Family Income (MFn. Our projects are
fully funded by the time we sell to our homeowners. We offer our homeowners a 30-year, no-interest
mortgage. Although our homeowners can afford the home, due to their income level they cannot qualify
for typical financing. The mortgage payments (including taxes, insurance, homeowner's association fees,
and maintenance) will not exceed 30% of their income.
ii. Project Tenants (key issue)
HfHSV provides an opportunity for ownership housing for fan1ilies earning between 30% and 50% MFI.
HfHSV has a very rigorous selection process. It starts with a series of community meetings at which our
program and qualifications are explained in detail. Applicants are initially reviewed for their financial
qualifications and other application requirements, We hold ''help sessions" for filling out the
applications. We have a team of volunteers led by our Community Services Director who reviews each
application. Qualified applicants then receive two home visits by two different teams of 3 individuals on
our Family Selection Committee. Each team evaluates the family according to the same criteria The
Family Selection Committee then votes on the final candidates to recolTI1l1end to our Board of Directions
for selection. Once families are selected, a comprehensive family support program helps to ensure a
24 - 45
<.~~~ Habitat
t.. , ,T for l{umanlty.
~1Ji.:tlr; V;;H..:y
Development Proposal Cleo Avenue
Page 5 of 11
smooth transition to homeownership (see 4c, below). In our 20-year history, we have not had a
foreclosure, nor has a family sold their home.
iiL Public Participation (key issue)
One of the strengths of HfHSV is that we are a volunteer organization that welcomes participation from
the community. Community members are involved in all aspects ofHfHSV projects including design,
family selection, and construction. It is our goal to involve the neighboring community from the earliest
phase of a project HfHSV wants the neighborhood to feel our projects are part of their community -
something they help build to make their neighborhoods better. Hfi!SV welcomes the opportunity to host
and/or participate in community meetings. Last year over 15,000 volunteers helped build HfHSV homes.
A four-home project wi1l1ikely involve approximately 4,000 to 5,000 volunteers from local businesses,
community organizations, churches, schools, and other individuals seeking to build a strong, vibrant
community.
iv. Architect and Project Design (key issue):
HfHSV has extensive design guidelines to meet our goal of building simple, decent homes that blend in
seamlessly with the surrounding neighborhoods. Beyond simple, decent design we are always looking for
ways to promote community within the site. On the Cleo Avenue site we envision creating a small
gathering area across fi'om the parking area for our families to socialize,
We have compared the KTGY Group, Inc., design to our standards and they meet our standards
completely, In addition, we are currently working with Malia Yee at KTGY on a project for six homes in
Morgan Hill. We have had a great experience with Ms. Yee to the point of approaching KTGY to design
our next project in the City of Santa Clara. KTGY understands our design goals and we have worked
together on ways to achieve them,
v. Management and maintenance (key issue)
Over the past twenty years HfHSV has developed a solid track record of accomplishment. We have
successfully completed a total of 15 projects resulting in 38 new homes. For each home built. we
received land or funding to purchase land and then raised the remainder of funds necessary to complete
the project. Depending on the scope of the projects, the budgets range from $250,000 to $1.5 million.
We have succeeded in raising $1.5 to $2 million dollars in each of the past three years. Our donor base
includes corporations, foundations, civic organizations, educational organizations, and individuals,
several of which are significant repeat donors. We are about to embark on a major donor canlpaign with,a
goal of raising $5 million over 3 years.
As a result of our successful fundraising, each of our homes is fully paid for by the time we "sell" it to the
homeowner. Because we fmance their 30-year no-interest mortgage~ we do not receive a lump sum
payment for the property, Instead these funds are repaid over 30 years, To date, none of our homeo'wners
have sold their homes, nor has a foreclosure been necessary.
Our experience in construction management and ongoing property management is described in 3b.
24 - 46
<lTf:' '~";'- u,...,r..~~,"",~
" nol.1[ fA~h.
I,;, , 'for HUmanity'"
Silicon \'Ji!~'.r
Development Proposal Cleo Avenue
Page 6 of 11
vi. Insurance (key issue)
All HfHSV projects are insured. Our insurance is provided through Wells Fargo Insurance Services
Northeast, Inc. We will comply with the City of Cupertino's insurance requirements, In addition we
require certificates of insurance from all our subcontractors. '
4h. Discuss flOW the proposed site plan can be improved upon in relation to the following issues:
'.,
vii. Integration with the neighborhood,.
viii. Site constraints;
ix., Provision of family amenities;
x. Proposed type of housing units - rental v. ownership,
We feel the current design has the best use of the size and shape ofthe parcel. We explored moving two
of the homes closer to Cleo Avenue, but that would result in smaller yard spac~ and almost no front yard
area, We like that each home faces each other giving a nice neighborly feeling. We also think the open
space across from the parking area would make"a nice shared outdoor area. We plan to work with the
future homeowners to plan a play or barbeque area.
4c. Identify up to five key elements in your approach to developing a family housing project, wl,ich
would make a distinct difference in the long-term quality of the project and integration with the
neighhorhood.
The impact of Habitat projects extends beyond the families. By constructing simple, decent homes on
previously underutilized land, and by educating families in the skills and responsibilities of home
ownership, Habitat contributes significantly to neighborhood improvement as well as to the elimination of
substandard housing. Working on our construction projects is empowering, as individuals develop new
skills as well as the self-esteem that accompanies ajob well done. Finally, our projects provide an
oppom.mity for community leaders, employees oflocal businesses, congregations from churches,
synagogues and mosques, retirees, students, and our families to come together around an important issue
(i,e" building homes for and with families that need them). thus fostering a sense of community that often
is lacking in urban and metropolitan areas. Following are key components of our program and services.
· Home Construction. Constructing simple, decent, affordable homes is our core business activity.
Under the direction of professional site supervisors we work with our partner families and
community volunteers to build the homes, We are able to keep construction costs low by
soliciting in-kind donations as well as by relying extensively on volunteer labor.
· Family Selection. Selecting the families that will build, own, and occupy our homes is a less
visible but equally important component of our program. We have a rigorous selection process to
ensure that our homeowners will be a positive part of the community. In addition, by going
through the process of building homes with their future neighbors they develop a life-long bond
of working t<<?gether, We select families to build their own home and their communities.
· Family Partnership and Support. Achieving stable housing requires more than a building. A
third component of our program provides support to families as they transition into home
ownership. We offer a series of home ownership workshops covering such topics as landscaping,
fmancial management, home repairs, and emergency preparedness; each family is required to
attend a minimum of six such workshops prior to occupancy. During the fIrst year of occupancy,
24 -47
.....-~
<~ Habit-at
t.,,' " for I{umamty~
sm:tHI\'i:i.lit.\.'
Development Proposal Cleo Avenue
Page 7 of11
members of our Family Partnership committee maintain close communication with each family;
after the first year we continue to follow up with the families once or twice a year to monitor their
overall welfare and also to track children's social, emotional, and academic development.
. Ownership Financing. Each partner family performs a minimum of 500 hours of labor on
Habitat homes, which becomes their down payment. Once the homes are completed, they are
sold to the families at no profit; Silicon Valley Habitat extends an interest-free loan to the
families, with monthly payments capped at 30% of family income,
· Scholarship Program. We offer' scholarships ranging from $500-$5,000 to our family members,
to support job skills training/apprenticeship programs and/or higher education, as further steps
toward stability and self-sufficiency.
-Id. In the case of a rental project, describe the proposed program for ongoing maintenance and
periodic renovation of the project.
Not Applicable - this will be an ownership project.
-Ie. In the case of an ownership project, describe how the maintenance of common area will be
accomplished and how a Homeowners Association can be managedfor such a small project.
To date, we have completed or are in the process of completing 6 projects that have Homeowner's
Associations (ROA) or Common Maintenance Agreements, For example, we completed one project
converting two Victorian homes into four condominiUlll units (two in each building). Although this
development was below the required nUlllber of units for a Homeowner's Association filing with the
Department of Real Estate (DRE), we still went through the process and created a ROA because there
was shared air space. We have several examples of properties that were subdivided from one parcel into
several parcels with a shared driveway and/or landscaping. In these cases we created a Common
Maintenance Agreement for the shared facilities.
In' either case, we work with the families so that they understand the agreements they are entering into. In
the case of a ROA, we work with the families to train them on how to run a. ROA and collect their HOA
dues as part of their mortgage. We also assist in setting up their HOA budgets.
-If. Describe the management structure for the project, including the number and type of onsite
management positions, the responsibilities of each positi.on and the number of flOurs per week each
position will be dedicating exclusively to the project. Explain which staff position will be residing
fuU-time on the property,
All Silicon Valley Habitat building projects are carried out under the general supervision of Bill
Schworer, our Construction Project Manager. It is Bill's responsibility to provide overall project
management and support of the construction phase of the project. Bill is also responsible for negotiating
all subcontracted services and monitoring subcontractor performance.
On-site inanagement and supervision is provided by a full-time site supervisor who is a paid professional
contractor. It is the site supervisor's responsibility to supervise the daily activities of the AmeriCorps
24 - 48
"
"';~ Habftat
'< , " !~.r fi~~anity'
:;tfl:~i: ;1i;.L:,;!
)evelopment Proposal Cleo Avenue
Page 8 of 11
staff and volunteers. Under the Site Supervisor's direction, the house will be completed to the design
specified by HfHSV and the City of Cupertino. The Site Supervisor will coordinate all inspections and
on-site subcontractor work.
One full time AmeriCorps position will be assigned to this project as a Construction Lead. It is the
Construction Lead's responsibility to help organize the site and lead groups of volunteers. All other on-
site labor is provided by volunteers. There are typically 20-25 volunteers on site each day Wednesday
through Sunday. Project team leaders (also volunteers) each work with teams of 4-5 volunteers to train
them in the task(s) of the day and coordinate their efforts.
All construction projects are supported in part by the HfHSV office staff. As described in answer #3, our
Community Services Director will work with the families to track the hours they worked on site, arrange
for their required workshops and work with them on selecting their home finishes. The Development
team will work to secure all grants and donations to fully fund each project by their completion. Our
procurement specialist will work to negotiate the best pricing and in-kind donations for the project.
4g. Provide a narrative on green practices anilother innovative concepts for the project. Describe in
as much detail as possible what green practices will be utilized in the proposed development.
HfHSV will target Cleo Avenue as a GreenPoint Rated (vMw.builditgreen,org) project, A GreenPoint
Rated home is graded on five categories-Energy Efficiency, Resource Conservation, Indoor Air Quality,
Water Conservation and Community. If the home meets minimum point requirements in each category
and scores more than 50 total points, then it earns the right to bear the GreenPoint Rated label. Because
GreenPoint Rated homes are evaluated by independent, certified raters, building professionals and
homeowners can feel confident that the rating has integrity and value. The project will incorporate
"green" building techniques, maximizing energy efficiency and sustainability. For example:
Material Note
High fly ash content in concrete (30%). Reduces the amount of cement needed, decreasing the
Fly ash is a byproduct of coal-burning environmental impacts of mining and cement production,
power plants. which accounts for 6%,ofC02 production worldwide.
Optimal Value framing (24" on center) Eliminates 30% of the framing material typically used on
a oroiect of this size.
Engineered lumber for floor joist "}II OSB is manufactured from fast growing farm trees. III"
ioists, wall sheathing (OSB) ioists use 50% less wood fiber than conventional lumber.
Raised heel trusses allow insulation to continue to the
Raised heel roof trusses wall. nnlike conventional trusses where insulation is held
back or comoressed.
Cement board siding Reduces the demand for redwood or cedar siding. Is a
durable, non-combustible product.
Fluorescent fixtures and bulbs More energy efficient.
Recycled paint Diverts paint from the landfill.
Permeable paving material for parking Allows rain water to reach water table instead of stonn
area drain.
Photovoltaic system (solar panels) Produce electricity for home from sunlight.
24 - 49
~ Habitat
'" '1 for Huma~
SlIico. Vaney
Development Proposal Cleo A venue
Page 9 of 11
Diverts construction waste from the landfill.
Recycle construction waste Construction waste accounts for 20% - 50% of landfill
waste.
On-demand water heaters Lower cost of energy because water is only heated when
necessary.
5. PROJECT SCHEDULE
5a. Provide a proposed project timeline.
Pro'ect Ob'ectives Strat 'es and Milestones
Project plans submitted
Six months or /an review
Families selected
9 months to select amlUes
Home construction initiated
12 months to construct
Home construction completed
Approximately 20-25 volunteers per day will be scheduledfor the job site, five
days/week, during the 12-nwnth construction period.
Families will each contribute 500 hours 0 "sweat e ui "to construction
Families participate in at least 6 home-ownership seminars
Home ownership seminars will be offered periodically througlwut 2009 and 2010
under the au ices 0 our Famil Partnershi and S ort Committee
Families move into homes, begin to make mortgage payments
October 2008
June 2009
April 2009
March 2010
December
2009
April 2010
Family partners provide follow-up support .
Family panners will maintain regular contact with the families during the first year of
residence
April 2010
6. SCOPE OF SERVICES
6a. Provide a proposed scope of services for this project.
One of the many benefits of HfHSV is that we are self-managing. We will coordinate with your Housing
Department on all aspects of the project The scope of HfHSV services are:
. Complete all land development and entitlements including working with the City of Cupertino to
finalize the site and unit design
· Act as ownerlbuilder. Obtain all permits, coordinate all building inspections
. Perform all recruitment for families and family selection
. Provide all family workshops
· Process all escrows
. Provide the homeowner families with a 3D-year no-interest mortgage
· Provide on-going support to the homeowner families
24 -: 50
<~ Habitat
I. , " f"F Humanit)'"
Si!i.:{lt, \~Jk'\'
T)evelopment Proposal Cleo Avenue
.Jage 10 of 11
· If a family opts to sell within the affordability-restricted time period, HfHSV will recruit and
select a new fanlily under the same criteria as the original agreement
7. PROJECT FINANCING AND PRO FORMA
7 a. Provide a detailed project budget listing all the anticipated funding sources including any City
contribution to tlte project.
See Attachment 2
7b. Provide breakdown of all development costs, i1tcluding hard and soft costs, and cosiper unit
Construction budget should be based upon the payment of State and federal prevailing wages.
Also, the City requires a 10 percent construction contingency, whi.ch should be factored into the
project budget.
See Attachment 2
,',
7 c.If applicable, identify ltow much of the age1tcy's developer's fee under the tax credit program wiD be
invested back into the project
Not applicable
7d. If City funds are requested, describe the proposed loan terms for the City funds requestedfor the
project
HfHSV is requesting $200.000 in addition to land to cover development fees and a portion of the site
work. This funding will enable HfHSV to sell the homes to families in the very low-income range
(earning below 50% MFI). The overall project cost is estimated at approximately $940.000. We
anticipate selling the units at approximately $185.000. Without additional funding toward fees and site
development, we would have to consider selling these units in a higher affordability range. We would
like these funds in the form of a long-term loan that is forgiven over the 30-year ownership period.
7e. Provide a cash-flow spreadsheet detailing expenses and incomefor a 30-year period.
HfHSV is not anticipating any expenses past the construction period. Because this is an ownership
project, the homeowners are responsible for the maintenance and upkeep oftheir properties. We expect
to receive amonthly income of approximately $2.000 per month for 360 months.
7f. Describe the agency's experience using housing tax credits (9% and 4%), tax exempt bonds,
federal CDBG and HOME funds, California MHP and project based HUD Sectwn 8.
HfHSV has experience with CDBG and HOME funds. We received CDBG funds for a four-unit project
built in the City of CaDlpbell and are currently receiving HOME funds on our projects in the City of Santa
24 - 51
<;~ Habitat
\'" , " for Humanity'
S!I::on \'~E('}'
Development Proposal Cleo Avenue
Page 11 of 11
Clara. Three units were completed in 2004, and we have just begun construction on an additional 6 units.
Weare familiar with the reporting requirements for each program and will work with the City of
Cupertino to provide any information necessary. HfHSV is also a Community Housing Development
Organization (eIIDO).
24 - 52
Attachment 1
.'.'
. . ~
SILICON V ALLEY HABITAT FOR HUMANITY, INC.
(A California Nonprofit Public Benefit Corporation)
***
"
FINANCIAL STATEMENTS
AND
SUPPLEMENTARY INFORMATION
Year Ended June 30, 2005 with Comparative Totals
for the Year Ended 2004
24 - 53
SILICON VALLEY HABITAT FOR HUMANITY,INC.
(A California Nonprofit Public Benefit Corporation)
STATEMENT OF FINANCIAL POSITION
June 30, 2005 with Comparative Totals as of June 30,2004
The Accompanying Notes are an Integral Part of these Financial Statements.
24 - 54
-2-
SILICON VALLEY HABITAT FOR HUMANITY, INC,
(A California Nonprofit Public Benefit Corporation)
STATEMENT OF ACTIVITIES
Year Ended June 30, 2005 with Comparative Totals for the Year Ended June 30, 2004
2005 2004
TEMPORARILY
UNRESTRICTED RESTRICTED TOTAL TOTAL
SUPPORT AND REVENUE:
Support:
General Support and
Contributions $ 1,047,185 $ $ 1,047,185 $ 682,208
Contributions In-Kind 29,463 29,463 144,322
Government Grants 540,987 540,987 124,386
Special Events 34,165 34,165 3.).76
Gain/Loss on Disposal of Assets 11,108
Loss on Sale of Donated
Securities (77)
Total Support L651.800 ] .65 ] .800 965.223
. Revenue:
New Home Sales 590,000 590,000 198,000
Interest and Dividend Income 6,234 6.).34 4,142
Mortgage Discount Amortization 107.081 107.081 72.825
Total Revenue 703.315 703.315 274.967
Total Support and Revenue 2.355.115 2.355.115 1.240.190
Net Assets Released from
Restrictions 160,000 (160.000)
Total SuPPOrt. Revenue and
Net Assets Released from
Restrictions 2.51 5.115 (160,000) 2.355.115 1.240.190
EXPENSES:
Program Services 1.131.577 1.131.577 665.538
Supporting Services:
Management and General 94,955 94,955 153,229
Fund Raising 149.460 149.460 60.429
Total Supporting Services 244.415 244.415 2]3,658
Total Expenses 1.375.992 1.375.992 879.196
CHANGE IN NET ASSETS 1,139,123 (160,000) 979,123 360,994
NET ASSETS, Beginning of Year 1,779,234 160.000 1.939.234 1.578.240
NET ASSETS, End of Year $ 2.918.357 $ $ 2,918.357 $ ) .939.234
The Accompanying Notes are an Integral Part of these Financial Statements.
-3- 24 - 55
The Accompanying Notes are an Integral Part of these Financial Statements.
-4-
24 - 56
SILICON VALLEY HABITAT FOR HUMANITY, INC,
(A California Nonprofit Public Benefit Corporation)
STATEMENT OF CASH FLOWS
Year Ended June 30, 2005 with Comparative Totals for the Year Ended June 30, 2004
2005 2004
CASH FLOWS FROM OPERATING ACTIVITIES:
Change in Net Assets $ 983,221 $ 360,994
Adjustments to Reconcile Change in Net Assets to Net Cash
Provided by Operating Activities:
Accrued Interest Payable 30,675
Discount on Notes Payable 169,098 (12,705)
In-kind Donations (29,463) (144,322)
In-kind Expenses 136,092
Depreciation 6,965 3,256
(Increase) Decrease in Assets:
Accounts Receivable (16,063) (12,587)
Prepaid Expenses 3,491 (8,007)'
Increase (Decrease) in Liabilities: ':.~
Accounts Payable (31,576) (190)
Accrued Expenses (1,857)
Accrued Vacation 5,994 7,887
Impound Payable 8,757 (797)
Accrued Rent Payable (4.560) 2.800 '
Net Cash Provided by Operating Activities 1.095.864 361.239
CASH FLOWS FROM INVESTING ACTIVITIES: '
Issuance of New Mortgages Receivable (590,000) (101,070)
Payments Received on Mortgages Receivable 125,091 17,835
(Increase) decrease in Construction in Progress (203,735) (369,766)
Decrease in Deposits 5,000
Purchase of Fixed Assets (22.237)
Net Cash Used by Investing Activities (668.435) (465.924) ,
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment on Notes Payable (244.386)
Net Cash Provided (Used) by Financing Activities (244,386) 244386
NET INCREASE IN CASH AND CASH EQUlV ALENTS 183,043 139,701
CASH AND CASH EQUIVALENTS, Beginning of Year 595,966 456.265
CASH AND CASH EQUlV ALENTS, End of Year $ 779,009 $ 595.966
The Accompanying Notes are an Integral Part of these Financial Statements.
- 5-
24 - 57
SILICON VALLEY HABITAT FOR HUMANITY, INC.
(A California Nonprofit Public Benefit Corporation)
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - GENERAL INFORMA nON:
Silicon Valley Habitat For Humanity, Inc. (the "Organizationll), is a non-profrt public benefit
organization incorporated in California on July 21, 1986, Silicon Valley Habitat for Humanity exists
to create a stronger local community (in Santa Clara County) by building affordable ownership homes
for very low-income families through broad based community support. The Organization builds
homes by engaging volunteers to work side-by-side with carefully qualified and selected future
homeowners, The candidate homeowners invests five hundred bours of their time, "sweat equity", to
volunteer for the Organization and help to build the homes. The homes are sold to families with very
low-incomes, Silicon Valley Habitat For Humanity, Inc. provides financing for the homes at a rate of
zero percent (0%) interest, and at no profit to the Organization. There is an appreciation scale set for
the homes based on the Consumer Price Index (CPI) or the median area income.
The Organization works in several areas, Briefly described is the scope of responsibilities:
Housing Development
Land Acquisition: Cultivate relationships with the Cities and County of Santa Clara to locate and
acquire land for home construction.
Construction: On site building of homes, training and all supervision of constroction site volunteers.
Families and Volunteers:
Homeowner Relations: Extensive qualification and selection of families, training and
managing long-term relationships with families.
Volunteer Services: Recruiting, training and scheduling volunteers for all aspects of work at the
construction site, in the office and on committees,
~ An amount of undesignated funds is donated to Habitat for Humanity International for the
construction of homes outside the United States, as determined by the Organization's Board of
Directors.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES:
Basis of Accounting - The fmancial statements of Silicon Valley Habitat For Humanity, IDe, have
been prepared on the accrual basis of accounting.
Basis of Presentation - The Organization follows standards of accounting and financial reporting for
voluntary health and welfare organizations as prescribed by the American Institute of Certified Public .
Accountants. In accordance with Statement of Financial Accounting Standards (SF AS) No. 117,
Financial Statements of Not-for-Profit Organizations, the Organization reports its financial position
and operating activities in three classes of net assets: unrestricted net assets, temporarily restricted net
assets, and permanently restricted net assets.
- 6-
24 - 58
SILICON VALLEY HABITAT FOR HUMANITY, INC.
(A California Nonprofit Public Benefit Corporation)
NOTES TO FINANCIAL STATEMENTS
NOTE 2 ~ SUMMARY OF SIGNIFICANT ACCOUNTINGPOUCIES (Continued):
Unrestricted net assets include those assets over which the Board of Directors has
discretionary control in carrying out the operations of the Organization. Under this
category, the Organization maintains an operating fund, property and equipment fund
plus any net assets designate.d by the Board for specific purposes.
Temporarily restricted net assets include those assets which are subject to donor
restriction and for which the applicable restriction was not met as of the year end of
the current reporting period.
Permanently restricted net assets include those assets which are subject to a non-
. ex.piring donor restriction, such as endowments.
Comparative Financial Information;. The financial"statements include certain prior-year. summarized .
comparative information in total but not ~.Y net asset class or functional expense categories. Such
information does not include sufficient detail to constitute a presentation in conformity with generally
accepted accounting principles. Accordingly, such information should be read in conjunction with the
Organization's financial statements for the year ended June 30, 2004, from which the summarized
. information was derived.
Use of Estimates - The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make estimates and
. assumptions that affect the repOrted amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the period. Accordingly, actual
results could differ from those estimates.
Cash and Cash Equivalents - Cash and cash equivalents include highly liquid investments and
investments with a maturity of three months or less, and exclude donor restricted receipts and
amounts designated for long-term purposes. The Organization maintains its cash in bank deposit
accounts which, at times, may ex.ceed Federally insured limits. The Organization has not experienced
any losses in such accounts. Management believes it is not exposed to any significant risk on cash
accounts.
Investments "- Investments in marketable securities with readily determinable fair values and all
investments in debt securities are reported at their fair values in the statement of financial position.
Unrealized gains and losses are included in the change in net assets. Investment income and gains
restricted by a donor are reported as increases in unrestricted net assets if the restrictions are met
(either by passage of time or by use) in the reporting period in which the income and gains are
recognized.
Grants and ProlP'3m Service Fees Receivable - The Organization considers all grants and program
service fees receivable to be fully collecuble; accordingly, no allowance for doubtful accounts is
considered necessary.
-7 -
24 - 59
...
SILICON VALLEY BABITA T FOR HUMANITY, INC.
<A California Nonprofit Public Benefit Corporation)
NOTES TO FINANCIAL STATEMENTS
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued):
Promises to Give - Unconditional promises to give, less an allowance for uncollectible amounts, are
recognized as revenues in the period received and as assets, decreases of liabilities, or expenses
depending on the form of the benefits received. All unconditional promises to give are receivable in
less than one year. The Organization considers aU unconditional promises t6 give to be fuUy
collectible; accordingly, no allowance for doubtful accounts is considered necessary. Conditional
promises to give are recognized when the conditions on which they depend are substantially met.
Property and Equipment - Property and equipment are recorded at cost or estimated fair value for
donated items. Equipment purchases over $1,000 are capitalized. The cost of repairs and
maintenance which do not improve or extend the lives of the respective assets are expensed currently.
Depreciation is computed on the straight-line method based on the estimated useful lives of the assets,
which range from 5 to 31.5 years. Depreciation is charged to the activity benefiting from the use of
the property or equipment.
Accrued Vacation - Accrued vac8tion represents vacation earned, but not taken as of
June 30, 2005 and 2004. The accrued vacation balance as of June 30, 2005 and 2004 was
$13,881 and $7,887, respectively.
Revenue Recognition - The Organization recognizes support and revenue on the accrual basis of
accounting. Revenue from grants which have been classified as "exchange transactions" and program
fees are recognized as revenue in the period in which the service is provided.
Contributions - Contributions are reported in accordance with SFAS No. 116, Accounting for
Contributions Received and Contributions Made. Contributions are recognized when the donor
makes a pledge to give that is, in substance, an unconditional promise. Contribu~ons are recorded as
unrestricted. temporarily restricted, or permanently restricted depending on the nature of donor
restrictions. Restricted contributions are reported as increases in restricted net assets. When the
restriction is met the amount is shown as a reclassification of restricted net assets to unrestricted net
assets.
Contributions In-Kind - Contributions in~kind are also recognized in accordance with the provisions
of SF AS No. 116. Donated equipment and other donated goods are recorded at their estimated fair
value as of the date of the donation. Contributed services, which require a specialized skill and which
the Agency would have paid for if not donated, are recorded at the estimated fair value at the time the
services are rendered. The Organization also receives donated services that do not require specific
expertise but which are nonetheless central to the Organization's operations. While these contributed
services are not reflected in the financial statements the estimated value of these services is disclosed
in Note.
AlIocation ofIndirect Functional Expenses - Indirect functional expenses are allocated to program and
support services based on an analysis of personnel time and space utilized.
Expense Allocation - The costs of providing the various programs and other activities have been
summarized on a functional basis in the statement of activities and in the statement of functional
expenses. Accordingly, certain costs have been aUocated among the programs and supporting
services benefited. Indirect expense allocations are based on the number of full time equivalent staff
members in each activity.
-8-
24 - 60
.,
SILICON V ALLEY HABITAT FOR HUMANITY, INC.
(A California Nonprofit Public Benefit Corporation)
NOTES TO FINANCIAL STATEMENTS
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued):
Income Taxes - Silicon Valley Habitat For Humanity, Inc. is exempt from federal income taxes under
Section 501(c)(3) of the Internal Revenue Code and Section 23701(d) of the California Revenue
Taxation Code. Accordingly, no provision for income tues has been made in the accompanying
statements. In "addition, the OrgaI).ization qualifies for the charitable contribution deduction under
Section 170(b){1)(A) of the Internal Revenue Code and has been classified as an organization that is
not a private foundation under Section 509(a){1} of the Internal Revenue Code.
Advertisinl! - The Organization's policy is to expense advertising costs as the costs are incurred.
Advertising expenses for the years ended June 30, 2005 and 2004 was
$4,413 and $4,601, respectively.
Reclassifications - Certain amounts in the prior year have been reclassified in order to be consistent
with the current year presentation.
:';
NOTE 3 - PROPERTY AND EQUIPMENT:
The cost and related accumulated depreciation of the property and equipment at June 30, consisted of
the following:
Less: Accumulated Depreciation
Property and Equipment, Net
2005
$ 11,349 $
22,927
34.026
68,302
(27.305)
$ 40.997 $
2004
11,349
22,927
13.533
47,809
(I 6.242)
31.567
Computers
Trucks & Vehicles
Office Equipment & Furniture
Depreciation expense for the years ended June 30, 2005 and 2004 was
$11,063 and $3,256, respectively.
NOTE 4 - EXPIRING DEBT:
In December 1994, the City of Santa Clara loaned the Organization $244,386 to purchase land and
make building improvements on the Gianera Street Phase I Project The loan is non-interest bearing
and collateralized by the building. The City consided the note paid in full on February 23, 2005,
when the residences. were sold to families and the debt forgiven per the loan agreement A second
non-interest bearing loan was granted by the City of Santa Clara in August 2004 for $1,099,667 for
the purchase of the Gianera Street Project Phase II. The loan is collateralized by the land and, like
Phase I, will be forgiven upon the completion and sale of the homes to families.
-9-
24 - 61
.'
SILICON VALLEY HABITAT FOR HUMANITY, INC.
<A California Nonprofit Public Benefit Corporation)
NOTES TO FINANCIAL STATEMENTS
NOTE 4 - EXPIRING DEBT (Continued):
Notes payable at June 30. consisted of the following:
2005 2004
City of Santa Clara Non-Interest Bearing
Note, Forgiven on completion of Gianera
Project.
City of Santa Clara Non-Interest Bearing
Note
$
s
244,386
J .099.667
$ 1.099.667 S
244.386
Due to the planned compliance with the note contingencies, the above listed note is expected to expire
as follows:
"i
Year Ending June 30.
2008
Principal
$ 1.099.667
$ 1.099.667
NOTE 5 - NOTE PAYABLE:
Silicon V alley Habitat has a $400,000 thirty-year interest free note pending with the County of Santa
Clara for the purchase of land in Campbell. The note has been discounted at 6.5% to a present value
of $162,119. The note is secured by a deed of trust on the property. Payments are to be made on the
note at a rate of 51,111 per month, however. the County and Habitat have reached agreement to have
the payments start on July 2006 at a rate of $2,222 per month through May 2010, at which time the
payment will revert to the original tenns of $1,111 per month payment until payoff scheduled for
September 2032.
NOTE 6 - DONA lED MA TERlALS:
The Organization receives a large volume of building materials, tools, and other household items for
use in its programs, office equipment and computers. All non-office equipment items donated were
used in the construction of homes and assisting the homeowner's with household items. The value of
these i~ms "for the years ended June 30, 2005 and 2004 was estimated at
$29,463 and $144,322, respectively.
24 - 62
- 10-
SILICON VALLEY HABITAT FOR HUMANITY
(A California Nonprofit Public Benefit Corporation)
***
FINANCIAL STATEMENTS
AND
SUPPLEMENTARY INFORMATION
Year Ended June 3D, 2006 'wlth Comparative Totals
for the Year Ended 2005
24 - 63
.'
SILICON VALLEY HABITAT FOR HUMANITY
(A Califomia Nonprofit Public Benefit Corporation)
TABLE OF CONTENTS
Pa!!es
INDEPENDENT AUDITOR'S REPORT
FINANCiAL STATEMENTS:~.
Statement of Financial Position
2
Statement of Activities
...
.>
Statement of Functional Expenses
Statement of Cash Flows
NOl.es to Financial Statements
4
5
6-10
"<,
24 - 64
.'
MICHAEL He CHAMBERS
P.O. Box 1054
San Jose, CA 95108
Tel. (408)892-0066
Fax (408)547-'1760
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors
Silicon Valley Habitat Por Humanity
(A California Nonprofit Public Benefit Corporation)
Milpitas, CA
I have audited the accompanying statement of financial position of Silicon VaIley Habitat Por Humanity
(a CaIifomia nonprofit public benefit corporation) as of June 3D, 2006, and the related statements of
activities, functional expenses, and cash flows for the year then ended. These financial statements are the
responsibility of the Organization's managelrtent. My responsibility is to express an opinion on these
financial statements based on my audit. The prior year summarized comparative information has been
derived from the Organization's financial statements for the year ended June 30, 2005 and, in ollr report
dated December 29,2005, we expressed an unqualified opinion on those financial statements.
I conducted my audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Govemmellt Audiang Standards,
issued by the Controller General of the United States. Those standards require that I plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amollnts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial statement
presentation. r believe that my audit provides a reasonable basis for illY opinion.
In my opinion, the financial statements referred to above present fairly. in all material respects, the
financial position of Silicon Valley Habitat For Humanity as of June 30, 2006, and the changes in its net
assets and its cash flows for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
?I~~V,f
Michael R. Chambers
Certified Public Accountant
San Jose, Califomia
December 04, 2006
- I -
24 - 65
SILICON VALLEY HABITAT FOR HUlvlANlTY
(A Califomia Nonprofit Public Benefit Corporation)
STATEMENT OF FINANCIAL POSITION
June 30. 2006 with Comparative Totals as of June 30, 2005
ASSETS
2006 2005
CURRENT ASSETS:
Cash and Cash Equivalents $ 701,075 $ 779,009
Account Receivable 1,019,933 81,650
Prepaid Expenses and Deposit 4,516
Notes Receivable 1,418
Mortgages Receivable - Current Portion 113.049 113.049
Total Current Assets 1.835.475 978.224
PROPERTY AND EQUIPMENT, NET 38.138 40.997
OTHER ASSETS:
Construction in Progress 2,083,303 777,011-
. Land - Gianera Phase )[ 1,099,667 1,099,667
Mortgage Receivable " 2,605,90 I 2,718,951
Unamortized Mortgage Discount (t.264.6S5) (1.351.164)
Total Other Assets, Net 4.524.186 3.244.465
TOTAL ASSETS $ 6.397.799 $ 4.263.686
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES:
Accounts Paya~le
Accrued VacatiOJ1
Accrued Interest Payable
Homeowner [mpounds
Total Current Liabilities
$ 164,505 $ 7,851
10,481 13,881
30,675
25.692 28.096
200.678 80.503
LONG-TERM LIABILITIES, NET OF CURRENT
PORTION:
Accrued Rent
Victor A ve. Land Loan
Discount on Notes Payable
City of Santa Clara Land Loan
Total Long- Tenn Liabilities, Net of Current Portion
Total Liabilities
TOTAL LIABILITIES AND NET ASSETS
3,040
400,000 400,000
(237,881 ) (237,881)
1.099.667 1.099.667
1,261.786 1.264.826
1.462.464 1.345.329
4.935,335 2,918,357
$ 6.397.799 $ 4.263.686
NET ASSETS:
Unrestricted Net Assets
The Accompanyil1g Notes are an Integral Part of these Financial Statements.
L4 - 66
-2-
SILICON VALLEY HABITAT FOR HUMANITY
(A California Nonprofit Public Benefit Corporation)
STATEMENT OF ACTIVITIES
Year Ended June 30, 2006 with Comparative Totals for the Year Ended June 30,2005
The Accompanying Notes are an Integral Part of these Financial Statements.
:l4 - 67
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.'
SILICON Y ALLEY HABITAT FOR HUMANITY
(A California Nonprofit Public Benefit Corporation)
STATEMENT OF FUNCTIONAL EXPENSES
Year Ended June 30,2006 with Comparative Totals for the Year Ended June 3D, 2005
PROGRAM
SERVICES SUPPORTING SERVICES TOTALS
Managemenlllnd
Genernl Fund Raisin!!. Total 1006 2005
EXPENSES:
CosL ofNe\\" Home
Const ruet iOIl $ 5: $ S $ $ 53!:.3 1 &
Total Direct Housing
E'l:penses 538.3 1 &
Salaries 225,835 56,459 94,098 150.557 376,392 333.674
Pll)'roll Taxes 25.313 6,329 10,547 16.876 42,189 24.040.
Employee Benefits 15,379 3,845 6,408 10.253 25.632 :W.020
Pension Plan
ConLribution 7.688 . 5.126 5.126 11.814 3.828
Total Salaries lInd
Related Expenses 274,115 71,759 111,053 182,811 457,017 381,562
Morlgage Discount 276.349
Insurance 19,354 1,382 6,912 8,294 27.648 27,647
Occupancy 11.897 5,948 5,948 11,8% 23.793 25,565
Office EWenses 14.176 5,917 5,917 20,193 13.085
Special Evcnts 31,273 31,273 )],273 20.533
]nternal Organization
Subsidy 33,245 33,245 15,252
Printing 7,981 7,980 7,9&0 15.961 8,903
Postage and Shipping 4.372 1,093 5,466 6.559 10,93\ 7,653
Miscellaneous Expenses 257 43 129 \72 429 7.065
Travel 7,197 7,297 7,297 6,689
Telephone 2.240 671 1,568 2,240 4,480 5,585
Small Equipl1lenl
Expenses 5.446
Professional Fund Raising 100 100 100 4,413
Recognition 6,016 6,016 6.016 3,834
Conference and Meetings ],170 \,170 ],170 2.937
Professional Servict.'S 6,435 1,609 1.609 8.0-14 1.140
Family Selection
Expenses 842 842 1,026
Automobile 1.982 1,982 ],982 968
Bank Fees 1,674 1.674 ],674 800
UtiliLies 2.923 2.923 2.923 162
Repairs and Maintenance 57~ 578 578
Total Expenses Before
Depreciation 375,114 ]10,063 170,429 280,492 655,606 1.364,932
Depreciation 3.319 3.319 4.425 7.744 11.063 1\.063
Total FUllctional
Expenses $ 378.433 L- ] 13.382 $ ] 74 854 $ 288.136 S 666.669 S 1.375.995
Percentage of Total 56.8 % 17.0 % 26.2 % 43.2 % 100.0 %
The Accompanying Notes are an [ntegral Part of these Financial Statements.
~-e8
-4-
-'
SILICON VALLEY HABITAT FOR HUMANITY
(A Califomia Nonprofit Public Benefit Corporation)
STATEMENT OF CASH FL.OWS
Year Ended June 30,2006 with Comparative Totals for the Year Ended June 30, 1005
2006 2005
CASH FLOWS FROM OPERATING ACTIVITIES:
Change in Net Assets $ 2,0] 6,978 $ 979,]23
Adjustments to Recollci]e ChangeJ.n Net Assets to Net Cash
Provided by Operating Activities:
Accrued Interest Payable (30,675)
Discount on Notes Payable (86,479) 169,098
In-kind Donations (29,463)
hl-kind Expenses (8,204 )
Depreciation 11,063 11,063
(Increase) Decrease in Assets:
Accoullts Receivable (938,283 ) (16.063)
Notes Receivable Homeowner (1,418)
Prepaid Expenses ., 4.516 3.491
Increase (Decrease) in Liabilities:
Accounts Payable 156,655 (31,576)
Accrued Vacation (3,400) 5.994
Impound Payable (2,405) 8,757
Accrued Rent Payable (3.040) (4.560)
Net Cash Provided by Operating Activities 1.I15.308 1.095.864
CASH FLOWS FROM INVESTING ACTIVITIES:
Issuance of New Mortgages Receivable (590,000)
Payments Received on Notes Receivable 209
Payments Received on MOIigages Receivable 113,050 125,091
(Increase) decrease in Construction in Progress ( 1.306.292) (203.735)
Net Cash Used by Investing Activities . (J .193.242) (668.435)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment on Notes Payable (244.386)
Net Cash Pl"Ovided (Used) by Financing Activities i244.386)
. NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (77,934) 183,043
CASH AND CASH EQUIVALENTS, Beginning of Year 779.009 595.966
CASH AND CASH EQUIVALENTS, End of Yea.' S 701.075 $ 779.009
The Accompanying Notes are an Integral Part of these Financial Statements.
24 - 69
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SILICON VALLEY HABITAT FOR HUMANITY
(A California Nonprofit Public Benefit Corporation)
NOTES TO FINANCIAL STATEMENTS
NOTE I - GENERAL INFORMA nON:
Silicon Valley Habitat For Humanity (the "Organization"). is a non-profit public benefit organiz.ation
incorporated in Califomia on July 2J., 1986. Silicon Valley Habitat for Humanity exists to create a
stronger local community (in Santa Clara County) by building affordable ownership homes for very low-
income families through broad based community support. The Organi7.ation builds homes by engaging
volunteers to work side-by-side with carefully qualified and selected future homeowners. The candidate
homeowners invests five hundred hours of their time, "sweat equity'\ to volunteer for the Organization
and help to build the homes. The homes are sold to families with very low.incomes. Silicon Valley
Habitat For Humanity provides finandng for the homes at a rate of zero percent (0%) interest, and at no
profit to the Organization. There is an appreciation scale set for the homes based on the Consumer Price
Index (CPI) or the median area income.
i
"
The Organization works in several areas. Briefly described is the scope of responsibilities:
Housing Development:
Land Acquisition: Cultivate relationships with the Cities and County of Santa Clara to locate and
acquire land for home construction.
Construction: On site buildi ng of homes, training and all supervision of construction site volunteers.
Families and Volunteers:
Homeowner Relations: Extensive qualification and sele~tion of families. training and
managing long-term relationships with families.
Volunteer Services: Recruiting, training and scheduling volunteers for all aspects of work at the
constlUction site. in the office and on c.ommittees.
Tithe: An amount of uildesignated funds is donated to Habitat for Humallit)r International tor the
construction of homes outside the United States, as det-emlined by the Organization's Board of Directors.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Basis of Accounting - The financial statements of Silicon Valley HaQitat For Humanity have been
prepared on the accrual basis of accounting.
Basis of Presentation - The Organization follows standards of accounting and financial reporting for
voluntary health and welfare organizations as prescribed by the American Institute of Certified Public.
Accountants. In accordance with Statement of Financial Accounting Standards (SFAS) No. 117,
Financial Statements of No/-fol'-Pl'ofit Organizations, the Organization rep011s its financial position and
operating activities in three classes of net assets: unrestricted net assets, temporarily restricted net assets,
and permanently restricted net assets.
24 - 70
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SI LI CON VALLEY HABITAT FOR HUMANITY
(A California Nonprofit Public Benefit Corporation)
NOTES TO FINANCIAL STATEMENTS
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued):
Unrestricted net assets include those assets over which the Board of Directors has
discretionary control in carrying out the operations of the Organization. Under this
categOlY, the Organization maintains an operating fund, property and equipment fund
plus any net assets designatett by the Board for specific purposes.
Temporarily restricted net assets include those assets which are subject to donor
restriction and for which the applicable restriction .vas not met as of the year end of the
current repOlting period.
Permanently restricted net assets include those assets which are su~ject to a non-expiring
donor restriction, such as endowments.
Comparative Financial Information - The financial statements include certain prior-year summarized
comparative infonnation in total but not by net asset class or functional expense categories. Such
information does not include sufficient detail to constitute a presentation in conformity with generally
accepted accounting principles. Accordingly, such information should be read in conjunction with the
Organization's financial statements for the year ended June 30, 2005, fi'om which the summarized
information was derived.
Use of Estimates - The preparation of financial statements in confol1uity with accounting principles
generally accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the period. Accordingly, actual
results could differ from those estimates.
Cash and Cash Eauivalents - Cash and cash equivalents include highly liquid investments and
investments with a maturity of three months or less, and exclude donor restricted receipts and amounts
designated for 10ng-tel111 purposes. The OJ'gariization maintains its cash in bank deposit accounts which,
at times, may e.....weed Federally insured limits. The Organization has not experienced any losses in such
accounts. Management believes it is not e),.-posed to any significant risk on cash accounts.
Investments - Investments in marketable securities with readily determinable fair values and all
inve!.1ments in debt securities are reported at their fair values in the statement of financial position.
Unrealized gains and losses are included in the change in net assets. Investment income and gains
restricted by a donor are reported as increases in unrestricted net assets if the restrictions are met (either
by passage oftime or by use) in the repolting period in which the income and gains are recognized.
Grants and Program Service Fees Receivable - The Organization considers all grants and program service
fees receivable to be fully collectible; accordingly, no allowance for doubtful accounts is considered
necessary.
Promises to Give - Unconditional promises to give, less an allowance for uncollectible amounts, are
recognized as revenues in the period received and as assets, decreases of liabilities, or expenses
depending on the fom1 of the benefits received. All unconditional promises 10 give are receivable in less
than one year. The Organization considers all unconditional promises to give to be fully collectible;
accordingly, no allowance for doubtful acc.ounts is considered ne-eessary. Conditional promises to give
are recognized when the conditions on which they depend are substantially met.
24 - 71
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SILICON VALLEY HABITAT FOR HUMANITY
(A California Nonprofit Public Benefit Corporation)
NOTES TO FINANCIAL STATEMENTS
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued):
Property and Equipment - Property and equipment are recorded at cost or estimated fair value for donated
items. Equipment purchases over $1,000 are capitalized. The cost of repairs and maintenance which do
not improve or extend the lives ofther.espective assets are expensed cltn'entIy. Depreciation is computed
Oil the straight-line method based on the estimated useful lives of the assets, which range fi'om 5 to 31.5
years. Depreciation is charged to the activity benefiting from the Lise of the property or equipment.
Accrued Vacation - Accrued vacation represents vacation earned, but not taken as of
June 30, 2006 and 2005. The accrued vacation balance as of June 30, 2006 and 2005 was
$10,481 and $13,881, respectively.
Revenue Recognition - The Organization recognizes support and revenue .on the accrual basis of
accounting. Revenue. from grants which have been classified as "exchange transactions" and program
fees are recognized as revenue in the period ittwhich the service is provided.
Contributions - Contributions are reported in accordance with SF AS No. 116, Accounting for
Contributions Received and Contributions Made. Contributions are recognized when the donor makes a
pledge to give that is, in substanc.e, an unconditional promise. Contributions are recorded as unrestricted,
temporarily restricted, or permanently restric.ted depending on the nature of donor restrictions. Restricted
contributions are reported as increases in restricted net assets. When the restriction is met the amount is
shown as a reclassification of restricted net assets to unrestricted net assets.
Contributions In-Kind - Contributions in-kind are also recognized in accordance with the provisions of
SF AS No. 116. Donated equipment and other donated goods are recorded at their estimated fair value as
of the date of the donation. Contributed services, which require a specialized skill and which the Age.ncy
would have paid for if not donated, are recorded at the estimated fair value at the time the services are
rendered. The Organization also receives donated services that do not require specific expel1ise but
which are nonetheless central to the Organization's operations. While these contributed services are not
reflected in the financial statements the estimated value of these services is disclosed in Note .
Allocation of Indirect Functional Expenses. Indirect func.tional expenses are allocated to program and
support services based on an analysis of personnel time and space utilized.
Exoense Allocation - The costs of providing the various programs and other activities have been
summarized on a functional basis in the statement of activities and in the statement of functional
expenses. Acc.ordingly, certain costs have been allocated among the ptograms and supporting services
benefited. Indirect expense allocations are based on the number of full time equivalent staff members in
. each activity.
Income Taxes - Silicon Valley Habitat For Humanity is exempt from federal income taxes under Section
. 501 (c)(3) ofthe Intemal Revenue Code and Section 23701(d) ofthe California Revenue Taxation Code.
Accordingly, no provision for income taxes has been made in the accompan)/ing statements. [n addition,
the Organization qualifies for the charitable contribution deduction under Section 170(b)(1 )(A) of the
Internal Revenue Code and has been classified as an organization that is not a private foundation under
Section 509(a){1) of the Internal Revenue Code.
AdveJ1ising - The Organization's policy is to expense advertising costs as the costs are ineurred.
Advertising expenses for the years ended June 30, 2006 and 2005 was $100 and $4,413, respectively.
24 - 72
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.'
SILICON VALLEY HABITAT FOR HUMANITY
(A California Nonprofit Public Benefit Corporation)
NOTES TO FINANCIAL STATEMENTS
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued):
Reclassifications - Cel1ain amounts in the prior year have been reclassified in order to be consistent with
the ClLn'ent year presentation.
NOTE 3 . PROPERTY AND EQUIPMENT:
The cost and related accumulated depreciation of the property and equipment at June 30, consisted ohhe
following:
2006 2005
11,349 $ 1],349
22,927 22,927
42.230 34.026
76,506 68,302
(38.368) (27.305)
38.138 $ 40.997
Computers
Trucks & Vehicles
Office Equipment & Fumiture
$
Less: Accumulated Depreciation
Property and Equipment, Net
$
Depreciation expense for the years ended JWle 30,2006 and 2005 was $11,063 and $11,063, respectively
NOTE 4 - EXPIRING DEBT:
In August 2004, the City of Santa Clara loaned the Organization $1,099,667 to purchase land and make
building improvements on the Gianera Street Phase II Project The loan is non-interest bearing and
collateralized by the building. The City considers the note paid in full when the residenc.es are sold to
families and the debt forgiven per the loan agreement. .
Notes payable at June 30, consisted of the following:
City of Santa Clara Non-Interest Bearing
Note
2006 2005
$ 1.099.667 $ 1.099.667
$ 1.099.667 $ 1.099.667
24 - 73
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SILICON VALLEY HABITAT FOR HUMANITY
(A California Nonprofit Public Benefit Corporation)
NOTES TO FINANCIAL STATEMENTS
NOTE 4 - EXPIRJNG DEBT (Continued):
Due 10 the planned compliance with the note contingencies, the above listed note is expected to expire as
follows:
Year Ending June 30.
2009
Pl'incipal
$ 1.099.667
$ 1.099.667
NOTE 5 - NOTE PAYABLE:
Silicon Valley Habitat has a $400,000 thirty-year interest free note pending with the County of Santa
Clara for the purchase of land in Campbell. T)le note has been discounted at 6.5% to a present vallie of
$162,119. The note is secured by a deed oftrLlst on the property. Payments are to be made on the note at
a rate of $1,111 per month. however, the County and Habitat have reached agreement to have the
payments start on July 2006 at a rate of $2,222 per month through May 2010. at which time the payment
will revert to the original ternlS of $1,11\ per month payment until payoff scheduled for September 2032.
NOTE 6 - DONATED MATERIALS:
The Organization receives a large volume of building materials. tools, and other household items for use
in its programs, office equipment and computers. All non-office equipment items donated were used in
the construction of homes and assisting the homeownelJs with household items. The value of these items
for the years ended June 30,2006 and 2005 was estimated at $67;665 and $29,463, l'espectivel)'.
24 - 74
- 10-
~
Land Coot
Land Acquisition $0 $0.00 0.00'110 $0
Ske Demolllion $0 $0.00 0.00'lI0 $0
Appraise'" $0 $0.00 0.00'110 $0
.TOiiij.a~jD';i;},;,;,~:Si~'~B'l.q]U,t::Ci: :;:=~11,'\;:r?5_,-~~}:Pi,:J~~~1;L;0~:;.~:~.
50ft Cost
Ganeral ReQlirements
Construotion Manalemenl
Slle Securily
ConlnI<:IDfll Bond
Ve/icltls & Mileage
Wool. Management
Adminlstrati1re
0IIIce Dvert1ead
Program CoordlMarketlng
Fund/;;IIs!ng
VoIunleer Support
Program DellekJpment
Homeowner Rel/Famlly Serv
Legal Fees
Prlnang
Other OffICe
SIte Plll1lonnel
AC Stipend
SlIe SupBlVislon
Construction Labor
AC Administration
AC Non-Rel Exp
AC Rei Exp
Design Consuffantll
CopylnglBlueprlnls
Ar<:hIlecl
CIvI
124 Enorgy AllaIysIs
Landscape Design
Sllllctural Engineer
Soils Eng & Gectech
Testing & Reports
Projecl Oocurrieots
Reimbursements
PIllITI1Is, Fees
Bulding PermIt Fees $15,455 $4.19 1.74% $3,864
ORE Appllcaflon Fee $1,861 $0.50 0.21 % $465
Planning Fees $30,827 $8.35 3.47% $7,7117
Public Works Fees $54,:346 $14.72 6.12% $13,587
School Fees $9,710 $2.63 1.09% $2.427
;tOl~~:~~it~\~ti~g)J!ili:.::~ti~~7tiffi~f}.~~~~-~:~\~t~~'~~~J,~~~~~T:lk:~!'
Attachment 2
Cleo Ave, Cupertino
Single Family Residential
F..anciaI Proforma
Cleo Avenue, Cupertino
SINGLE FAMILY HOMES DEVELOPMENT PROFORMA
2.3 BR
~
12 months
101112009
~ t..!!!.J.i!ll!! Price P... Unl
923 4 JnI;~'$234 .965
With ...;mbursement of CIty tee. .~ $1 8 965
3692 4
TD1aI5el1oul ~
$939,861 $254.57
Total Homes:
ConslnJcllon ?e<iod:
CanstnJ<;tion Sliirt
4 Sale. per year
lllil.IYz
Subtotal
IQI&
PerSq Ft % ofTolal
$1.329
$2,806
$0
$66S
$2,068
$0.36
$0.7&
$0.00
$0.18
SO.56
0.15%
0.32%
0.00'lI0
0.07%
0.23%
$74
$6,572
$0
$3,766
$0
$0
$6,513
$37
$0
$0.02
$1.78
$0.00
$1.02
$0.00
$0.00
$1.76
$0.01
$0.00
0.01%
0.74%
0.00%
0.42%
0.00%
0.00%
0.73%
0.00%
0.00%
$7,579
$30,788
$67,785
$0
$111
$0
$2.08
$8.34
$18.36
$0.00
$0.03
$0.00
0.86%
3.47%
7.63%
0.00'lI0
0.01%
0.00'lI0
$1,861
$37,218
$24.191
$465
$465
$8,141
$2.605
$3,257
$923
$0
$0.50
$10.08
$6.55
$0.13
$0.13
$2.21
$0.71
$0.86
$0.25
$0.00
0.21 %
4.19'110
2.72%
0.05%
0.05%
0.92"10
0.29%
0.37%
0.10%
0.00%
Per Unit
$332
$701
$0
$166
$517
$18
$1,643
$0
$941
$0
$0
$1,628
$9
$0
$1,920
$7,89lI
$16,946
$0
$26
$0
$465
$9,304
$6,046
$116
$118
$2,035
$651
$914
$231
$0
Hord Cosb:
Site Work, PubI"lC Improvem.nts
GradIng $41,669 $11.34 4.71% $10,467
Tr.ncting $3.380 $0.91 0.38% $840
Storm OraIn $8,824 $2.39 0.99% $2,206
Sanitary Sowar $27,675 $7.55 3.14% $6,989
Water Mains $2,326 $0.63 0.26% $581
Joint T","ch $7,842 $2.07 0.86% $1,911
Irrigation System $0 $0.00 0.00% $0
Curbs & Gulters $23,261 $8.30 2.62% $5,815
Patio&, Sidewalks $4,209 $1.14 0.47% $1,052
Street Lights $0 $0.00 0.00% $0
T ransformetll $0 $0.00 0.00% $0
Paving $50,000 $13.64 5.63% $12,500
Fonces, Gates, Docks $2.511 $0.68 0.28% $628
Silo TroI!Is, Carport $0 $0.00 0.00% $0
Landscape $5,000 $1.35 0.56% $1,250
Unit Construction $339,684 $92.00 38.24% $64,916
fOlllrRa7ii'tilSls~.'\S;,,$i?~J~ ~'t~~::'~.il{~lfn5'i6;54.1~~~$i39Jl'iF.iE~~~~1t:!ai~;i~
Finance Coots:
11lIe & Tax Fe.. $2ll5 $0.08 0.03% $74
Property Taxes $279 $0.08 0.03% $70
Insurance $9ll0 $0.26 0.11 % $240
Inlerest $22.2 $0.08 0.02% $55
~TOiBiRna~:c~~~~~~~.Jl~.$1~i56~~;$Ct4B1~~fc;:20'%~1~~~$439
PROFiT BEFORE TAX:
$0
$0.00
MARK-UP
RET1.JRN ON COST
0.011%
0.011%
October 2007
$0
SHicon Vaney Habitat for Hu~
C<>nfidenfiaJ Work Product
Nol For Public R.I.....
24 - 75
Page1
Cleo Ave, Cupertino
Single Family Residential
ClelBnWlf:oCbpertino
SINGLE FAMILY HOMES CONSTRUCTION LOAN DRAW SCHEDULE
General Inputs
Land
Building Cost
Number of Units
Cost per Unit
Cost wlSubsldy
Total Construction
Timing of Draws
o
939,861
4
234,965
184,965
12 months
DIRECT CONSTRUCTION
SALES
Construction Starts
Completions
Closings
Cumulative
Silicon Valley Habitat for Humanity
Confidential Work Product
Not For Public Release
Sources
City of Cupertino $200,000
Proposition 1 C $ 90,000
Cal Home BEGIN $120,000
PG&E $ 60,000
Federal Home Loan Bank $ 60,000
Private Donations $409,861
Month 1 Month 2 Month 3 Month 4 Month 5 TOTAL
25% 25% 25% 25% 0% 100%
Month 0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month B
Ocl-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10
Month 9
Jul- fO
Month 10
Aug-10
Month 11 Month 12
Sep-10 Oct-10
4
4
t
4
4
2 "
2
2
3
3
3
4
4
DRAWS
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Total Construction
234,965
234,965
234,965
234,965
939,861
58,741
58,741
58,741 58,741
58,741
58,741
58,741 58,741
58,741
58,741
58,741
58,741
58,741
58,741
58,741
58,741
58,741
58,741
58,741 117,483
58,741
58,741 117,483
58,741
58,741
117,483
58,741
58,741
58,741
Land
~\~~~~~~0~~~d~~~~~~t~~~~~~~~H~~~W0~rtM~~8~~~~~~~~~~~~~k~C~~"~~1
!:!1'!f"'";Cash;'Flow;~.~'r;;~;;;'~1\1':\"~'.i(:,jS'!'ffi,,'i't'i.;,I!;;f:'::,')Z4~11i;~:';l~;'('('?J~Wij;:\*jI881;120;ti,!1fi\:"<(68;141 )?'~"(58;7.J1)~'ffi"111;483!~m!ii(5J;r41)~~jl~(58;7411l'i)~117;483~1~~MW.i8~741)1ij@j~(58;741)~:~'\',117;483r~"W:;{~(68:741):iikWi?(58;741 )il''''1:78~24jl
~ Net Profit
, Total Costs
OJ Mark-up
October 2.
939,861
939,861
0.00%
age1