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PIA No. 2010-02 - K. Hovnanian at Gilroy, LLCFirst American Title Company Escrow No.: RECORDING REQUESTED BY: City of Gilroy WHEN RECORDED, MAIL TO: Shawna Freels City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 6-t C DOCUMENT: 20889326 Y u I i i i I I V Fees... Taxes.. Copies. AMT PAID Pages: 17 63.00 63.00 REGINA ALCOMENDRAS SANTA CLARA COUNTY RECORDER Recorded at the request of Title Company RDE # 008 9/27/2010 2:06 PM (SPACE ABOVE THIS LINE FOR RECORDER'S USE) Property Improvement Agreement No. 2010-02 Deer Park Phase III — Tract 9966 APN: 783-20-055 and 056 John M. Filice, Trustee of The John M. Filice Family Trust dated November 08, 1970, Lewis, Dick, & Brunson, LLC, a California limited liability company, Arcadia Development Co, a California corporation, Glen Loma Corporation, a California corporation, and K. Hovnanian at Gilroy, LLC, a California limited liability company -1- 8/16/10 IKKS1827388.4 091210-04706004 PROPERTY IMPROVEMENT AGREEMENT RESIDENTIAL AGREEMENT FOR EXTENSIONS OF WATER DISTRIBUTION SYSTEMS: IMPROVEMENT OF STREETS: INSTALLATION OF SEWERS, STORM DRAINS AND OTHER PUBLIC WORKS FACILITIES Property Improvement Agreement No. 2010-02 This agreement is made and entered into this .2L day of September 2010, by and between the City of Gilroy, a municipal corporation, herein called the "City", John M. Filice, Trustee of The John M. Filice Family Trust dated November 08, 1970, Lewis, Dick, & Brunson, LLC, a California limited liability company, Arcadia Development Co, a California corporation, Glen Loma Corporation, a California corporation, and K. Hovnanian at Gilroy, LLC, a California limited liability company, each being a real property owner, developer and/or subdivider, herein collectively called the "Developer". WHEREAS, a final map of subdivision, record of survey or building permit (Site Clearance) application has now been submitted to the City for approval and acceptance, covering certain real estate known as and called: Deer Park Phase III, Tract 9966, APN: 783-20-055, 056. WHEREAS, the Developer requires certain utilities and public works facilities in order to service the property under the minimum standards established by the City and, WHEREAS, the City, by and through its City Council, has enacted certain Codes, Ordinances and Resolutions and certain Rules and Regulations have been promulgated concerning the subject matter of this agreement and, WHEREAS, the City has certain responsibilities for maintenance and operation of such utilities and public service facilities after acceptance by City, and for providing the necessary connecting system, general plant and appurtenances, and the City is agreeing to discharge those responsibilities, provided that Developer has faithfully and fully complied with all of the terms, covenants, conditions to be performed by Developer pursuant to this agreement. NOW THEREFORE, in consideration of the foregoing premises and in order to carry on the intent and purpose of said Codes, Ordinances, Resolutions and Regulations, it is agreed by and between the parties as follows: SECTION 1 That all Codes, Ordinances, Resolutions, Rules and Regulations and established policies of the City and the laws of the State of California and the United States of America concerning the subject matter of this agreement are hereby referred to and incorporated herein to the same effect as if they were set out at length -2- 8/16/10 \KKS1827388.4 091210-04706004 herein. Said Codes, Ordinances, Resolutions, Rule and Regulations include, but are not limited to, the following: the Code of the City of Gilroy, the current Zoning Ordinance, and the currently adopted Uniform Building Code. SECTION 2 The Developer agrees: a. To perform each and every provision required by the City to be performed by the Developer in each and every one of said Codes, Ordinances, Resolutions, Rules and other Regulations and to comply with the foregoing and all applicable laws. b. To grant to the City without charge, free and clear of encumbrances, any and all easements and rights of way in and to his said real property necessary for the City in order that its water, electricity, and/or sewer lines in or to said real property may be extended. c. To indemnify, defend with counsel of City's choice and hold the City free and harmless from all suits, fees, claims, demands, causes of action, costs, losses, damages, liabilities and expenses (including without limitation attorneys' fees) incurred by City in connection with (i) any damage done to any utility, public facility or other material or installation of the City on said real estate which the Developer or any contractor or subcontractor of the Developer, or any employee of the foregoing, shall do in grading or working upon said real estate; or (ii) arising or resulting directly or indirectly from any act or omission of Developer or Developer's contractors, or subcontractors, or any employee of the foregoing in connection with the work performed by them in connection with this agreement, including without limitation all claims relating to injury or death of any person or damage to any property. d. To construct and improve all public works facilities and other improvements described in this agreement and the improvement plans submitted to the City of Gilroy in furtherance of this agreement on file with the City of Gilroy. All construction and improvements shall be completed in accordance with all standards established in the Codes, Ordinances, Resolutions, Rules and Regulations, all applicable laws and this agreement, and in accordance with the grades, plans, and specifications approved by the City Engineer. Developer shall furnish two good and sufficient bonds, a Payment Bond on a form provided by the City and a Faithful Performance Bond, both of which shall be secured from a surety company admitted to do business in California. Each bond shall set forth a time period for performance by the contractor of its obligations and the terms and conditions on which the City may obtain the proceeds of the bond. The Faithful Performance Bond shall be in an amount not less than one hundred percent (100%) of the total estimated amount payable for the improvements described in this agreement, and shall secure payment to City and the Developer of any loss due to the default of the contractor or its inability or refusal to perform its contract. The performance bond shall by its terms remain in full force and effect for a period of not less than one year after completion of the improvements by Developer and acceptance of the improvements by City, to guarantee the repair and replacement of defective material and faulty workmanship. Upon completion of the improvements by Developer and acceptance of the improvements by City, -3- 8/16/10 1KKS1827388.4 091210-04706004 Developer may substitute for the performance bond securing maintenance described above, a separate maintenance bond issued by an admitted surety in the amount of ten percent (10%) of the total contract price of the improvements (provided that the amount of said bond shall not be less than One Thousand Dollars ($1,000) to cover the one-year maintenance period. The Payment Bond shall be in an amount not less than one hundred percent (100%) of the total estimated amount payable for the improvements described in this agreement. The Payment Bond shall secure the payment of those persons or entities to whom the Developer may become legally indebted for labor, materials, tools, equipment or services of any kind used or employed by the contractor or subcontractor in performing the work, or taxes or amounts to be withheld thereon. The Payment Bond shall provide that the surety will pay the following amounts should the Contractor or a Subcontractor fail to pay the same, plus reasonable attorneys' fees to be fixed by the court if suit is brought upon the bond: (1) amounts due to any of the persons named in California Civil Code Section 3181; (2) amounts due under the Unemployment Insurance Code with respect to work or labor performed for the improvements described in this agreement; and (3) any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the Contractor and Subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to the work and labor. The Payment Bond shall, by its terms, inure to the benefit of any of the persons named in Civil Code Section 3181 so as to give a right of action to those persons or their assigns in any suit brought upon the bond. Simultaneously with the submission of its building permit application (Site Clearance), the Developer shall submit the following for both the surety that furnishes the Payment Bond and the surety that furnishes the Faithful Performance Bond: (1) a current printout from California Department of Insurance's website (www.insurance.ca.gov) showing that the surety is admitted to do business in the State; or (2) a certificate from the Clerk of the County of Santa Clara that the surety's certificate of authority has not been surrendered, revoked, canceled, annulled, or suspended or in the event that it has, that renewed authority has been granted. e. That upon approval of the final map of the subdivision, the record of survey or the building permit covering the real estate to be improved and before any work is done therein, the Developer shall pay to the City all sums, shown in Section 9 thereof to be due under the terms and provisions of this agreement. f. At all times during the term of this agreement and until the improvements constructed by Developer are accepted by City, Developer shall, at no cost to City obtain and maintain (a) a policy of general liability and property damage insurance in the minimum amount of One Million Dollars ($1,000,000), combined single limit for both bodily injury and property damage; (b) workers' compensation insurance as required by law; and (c) broad form "Builder's Risk" property damage insurance with limits of not less than 100% of the estimated value of the improvements to be constructed by Developer pursuant to this agreement. All such policies shall provide that thirty (30) days written notice must be given in advance to City prior to termination, cancellation or modification. The insurance specified in (a) above shall name -4- 8/16/10 IKKS1827388.4 091210-04706004 City as an additional insured and the insurance specified in (c) shall name City as a loss payee, and shall provide that City, although an additional insured or loss payee, may recover for any loss suffered by reason of the acts or omissions of Developer or Developer's contractors or subcontractors or their respective employees. Developer hereby waives, and Developer shall cause each of its contractors and subcontractors to waive, all rights to recover against City for any loss or damage arising from a cause covered by the insurance required to be carried pursuant to this agreement or actually carried by Developer in connection with the work described in this agreement, and will cause each insurer to waive all rights of subrogation against City in connection therewith. All policies shall be written on an occurrence basis and not on a claims made basis and shall be issued by insurance companies acceptable to City. Prior to commencing any work pursuant this agreement, Developer shall deliver to City the insurance company's certificate evidencing the required coverage, or if required by City a copy of the policies obtained. SECTION 3 That except as otherwise expressly provided in this Agreement, all sums shown herein to be payable by the Developer to the City are due and payable to the City upon the execution of this agreement. SECTION 4 That all the provisions of this agreement and all work to be done pursuant to the terms of this agreement are to be completed to City's satisfaction within two (2) years from and after the date and year first above written. Developer shall maintain such public works facilities and other improvements described in this agreement at Developer's sole cost and expense at all times prior to acceptance by City in a manner which will preclude any hazard to life or health or damage to property. SECTION 5 That the special provisions concerning the particular real estate referred to above, being attached hereto, are hereby incorporated herein and expressly made a part of this agreement. SECTION 6 That the faithful and prompt performance by the Developer of each and every term and condition contained herein is made an express condition precedent to the duty of the City to perform any act in connection with this transaction, and the failure, neglect or refusal of the Developer to so perform, or to pay any monies due hereunder when due shall release the City from any and all obligations hereunder and the City, at its election, may enforce the performance of any provision herein, or any right accruing to the City or may pursue any remedy whatsoever it may have under applicable laws or the Codes, Ordinances, Resolutions, Rules and Regulations of the City, in the event of any such default by Developer. SECTION 7 That this agreement, together with the attached stipulations, is an instrument affecting the title or possession of the real property described in Exhibit A. All the terms, covenants and conditions herein imposed shall be binding upon and inure to the benefit of City, Developer and the successors in interest of Developer and their successors and permitted assigns. The obligations of the Developer under this -5- 8/16/10 1KKS1827388.4 091210-04706004 agreement shall be the joint and several obligations of each and all the parties comprising Developer. Upon the sale or division of the property described in Exhibit A, the terms of this agreement shall apply separately to each parcel and the owners of each parcel shall succeed to the obligations imposed on Developer by this agreement. SECTION 8 That the following General Stipulations and the attached stipulations shall be completed subject to the approval of the Community Development Director. 1. Locate and properly dispose of any wells, septic tanks and underground fuel storage facilities. NOTE: The capping of any well will require inspection by the Santa Clara Valley Water District. 2. Schedule the construction of improvements along existing public roads so that the work affecting vehicular traffic is completed with a minimum interruption to traffic. 3. All work within the public right-of-way shall be subject to the approval of the City Engineer. 4. Before construction utilizing combustible materials may proceed, an all weather access must be provided to within 150 feet of the building site; and at least one in service fire hydrant must be available within 150 feet of each portion of the site wherein this construction is to take place. Location of the fire hydrants will be determined by the Fire Chief. 5. All work shall be coordinated so that the existing residents on Rancho Hills Drive have access to their properties. 6. Off -site public improvements shall be installed per the approved Improvement Plans. 7. The Developer shall provide to the City of Gilroy electronic files, in a format acceptable to the City (PDF, DWG format, AutoCAD 2004 maximum) of the final map, tract map and/or parcel map, improvement plans, and record drawings. 8. Before issuance of any building permit, all roadway infrastructures shall be in place and covered with an all weather road subject to the approval of the City Engineer. 9. Any reimbursements due the Developer, unless specified otherwise in writing in this agreement, will expire ten (10) years after the date of execution of this agreement. -6- 8/16/10 1KKS1827388.4 091210-04706004 SECTION 9 That the attached Development Cost Schedule enumerates all fees and their extensions. TOTAL AMOUNT DUE CITY $ 394,287.32 (Minimum, actual amount to be determined) IN WITNESS WHEREOF, City has executed this agreement as of September;II, 2010. ATTEST: OF GILROY na Freels CITY CLERK APPROVED AS TO FORM: Tom Haglund CITY ADMINISTRATOR 4.161.l et.,iAKse=-4 IN WITNESS WHEREOF Developer has executed this agreement as of p-61(ribeV.2 f. 11 NOTE: If Developer is a corporation, the complete legal name and corporate seal of the corporation and the corporate titles of the persons signing for the corporation shall appear below. DEVELOPER: John M. Filice, Trustee of The John M. Filice Family Trust dated November 08, 1970 By: C Name: �dN w / 7-tc2 Title: "7/7GS��— Date: ?_I22 20/0 [Signatures continued on next page] -7- 8/16/10 IKKS1827388.4 091210-04706004 Lewis, Dick, & Brunson, LLC, a California limited liability company By: Name: p R A D R &A Title: uiGE oEi- i Date: % - /3 - 2 0 ( u Arcadia Development Co., a California corporation By: 1 Name: g 0'D P G-! Title: \I GE Pie ES 11D E �T Date: 9-/3-2.0►D Glen Loma Corporation, a California corporation By: Name: Title: Date: 7 /3 PI-1�1C/ce K. Hovnanian at Gilroy, LLC, a a California limited liability company By: Name: Rki1arD J 89 L.E$7IFRi Title: Date: 9• 17. Property Improvement Agreement No. 2010-02 -8- 8/16/10 1KKS1827388.4 091210-04706004 STATE OF CALIFORNIA COUNTY OF S rMTA al-ARA } ss. On S6PreAnt el2 1271 Zo\ o , before me, 12L`i (<A _kO F ('GA , Notary Public, personally appeared 0or4r+ M F (L1 Cs , who proved to me on the basis of satisfactory evidence to be the person(e) whose name() ibt: subscribed to the within instrument and acknowledged to me that he/may executed the same in his/her/their-authorized capacity(ies), and that by hiss' signature(s) on the instrument the person(s); or the entity upon behalf of which the person.(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and of "al seal. i (Signature) DESCRIPTION OF ATTACHED DOCUMENT STATE OF CALIFORNIA SS. COUNTY OFSAWA C-Ni2 On SePrernbc (3 2010 , before me, CM L'I KA-1-NV f red , Notary Public, personally appeared gm) I) (A. RG'!, , who proved to me on the basis of satisfactory evidence to be the person(8-) whose name(s-) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS y hand and; fficial se (Seal) Number of Pages CARLY KALKOFFEN Commission • 1694029 Nolany Public • Callomis Santo Clow Cour* Pay Comm.SpMwkp26.�1 (Seal) (Signature) DESCRIPTION OF ATTACHED DOCUMENT Number of Pages -9- 8/16/10 \KKS\827388.4 091210-04706004 STATE OF CALIFORNIA COUNTY OF ss. On , before me, , Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Signature) DESCRIPTION OF ATTACHED DOCUMENT STATE OF CALIFORNIA SS. COUNTY OF(i<n`ic) On .,..0ie",ry\VO f \'t ?.�o O , before me, TS r ie ,1 1L,o rE'Ji , Notary Public, personally appeared '(l�',���pr-ake6kcPJC't. , who proved to me on the basis of satisfactory evidence to be the person(e) whose name(&) is/are subscribed to the within instrument and acknowledged to me that he/she/therexecuted the same in his/her,ttreir'authorized capacity(ies), and that by hiss' signature() on the instrument the person(), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS .my hand and official seal. TERME LACK (Seal)fi>� Commission • 11122917 Notary PsMic • California .I Sacrs msero Ceolq No Comm. E Nov 16in012 (Seal) Number of Pages (Signature) DESCRIPTION OF ATTACHED DOCUMENT Number of Pages -10- 8/16/10 IKKS1827388.4 091210-04706004 STATE OF CALIFORNIA COUNTY OF ss. On , before me, , Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Signature) DESCRIPTION OF ATTACHED DOCUMENT STATE OF CALIFORNIA ss. COUNTY OF hkovvz_o On v 1 `a\ \ 0 before me, C , Notary Public, personally appeared CKYA , l�l ,3 , who proved to me on the basis of satisfactory evidence to be the person hose name/are subscribed to the within instrument and acknowledged to me tha he%hey executed the same in 0it authorized capacity(i0; and that b it signature (ti on the instrument the person or the entity upon behalf of which "the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing (Seal) Number of Pages paragraph is true and correct. ESS my hnd official seal. (Seal) (Si DESCRIPTION OF ATTACHED DOCUMENT N*A KONZ) CommnMslon • 173NS41 Notary Public • commie $onto Clara Cool* Number of Pages per GC Sec. 40814; CC Sec. 1181 \KKS\827388.4 091210-04706004 -11- 8/16/10 EXHIBIT 'A' LEGAL DESCRIPTION All that certain Real Property situate in the City of Gilroy, County of Santa Clara, State of California, described as follows: Remainder Lot A and Remainder Lot D, as shown on that certain map entitled "Tract No. 9519 Deer Park Phase I", which was filed in the office of the recorder of the County of Santa Clara, State of California on October 01, 2003 in Book 764 of Maps, Pages 40 through 49. ENCOMPASS NO: DATE: NUMBER: PROJECT LOCATION: PARCEL NUMBER: OWNER/DEVELOPER: MAILING ADDRESS: TELEPHONE NO: PREPARED BY: Account No. CITY OF GILROY COMMUNITY DEVELOPMENT DEPARTMENT ENGINEERING DIVISION COST ESTIMATE ALL PUBLIC FACILITY, SEWER, WATER & TRAFFIC FEES ARE DEFERED Key Code El 100-2601-0000-3625 4904 100-2601-0000-3605 4702 420-2600-0000-3660 4501 432-2600-0000-3660 3301 433-2600-0000-3660 4905 435-2600-0000-3660 4509 436-2600-0000-3660 4510 440-2600-0000-3660 4515 720-0433-0000-3620 2202 801-2601-PWDO-3899 4703 801-2601-PWDO-3899 4703 Payment Bond Performance Bond COST SCHEDULE j27';AUl�-1,1 TRACT Revised: Revision Number. Revision By: 9/14/2010 1:44 PM -,RANCRDMILLS: DEER PARK P 7834204)55 0" ,John M..Filice,Family:T Dick;88nisonL Ien LOma C+arportian ,KHovanlan at°Giicoy;L JIM!MAESTRL Fee: $6,210.60 $330,118.64 $16,856.00 $984.00 $1,275,372.00 $1,353,348.00 $565,488.00 $2,331,288.00 $41,903.68 $0.00 $0 00 '. $4,051,483 $4,051.483 Credits: .00 Total (1) Amount Due: Account Description: $6,210.60 $330,118.64 $16,856.00 $984.00 DEFERED TO BUILDING PERMIT DEFERED TO BUILDING PERMIT DEFERED TO BUILDING PERMIT DEFERED TO BUILDING PERMIT $41,903.68 $0.00 $0.00 $396,072.92 Paid on Invoice # Special Public Works Sery Engring Plan Check & Insp Storm Development Fee Str Tree Development Fee Traffic Impact Fee Sewer Development Fee Water Development Fee Public Faciity Impact Fee Const Water Use Fee Reimbursements Other Reimbursements Fees Last Revised July 2, 2007 G:\COMDEV\ENGINEERING\FEES\Project Cost Schedules\TRACT 9966 DEER 9/14/2010 1:44 PM CITY OF GILROY COMMUNITY DEVELOPMENT DEPARTMENT ENGINEERING DIVISION COST ESTIMATE ALL PUBLIC FACILITY, SEWER, WATER & TRAFFIC FEES ARE DEFERED ENCOMPASS NO: DATE: NUMBER: PROJECT LOCATION: PARCEL NUMBER: OWNER/DEVELOPER MAILING ADDRESS: TELEPHONE NO: PREPARED BY: COST SCHEDULE TYPE: 'DEFER PUBLIC FACILITY FEE ? DEFER SEWER, WATER, TRAFFIC FEES ? El 27-Aug-2010 TRACT 9966 RANCHO HILLS DEER PARK PH III 783-20-055,056 (John M. Fllice,Famiiy,Trusl .Lewis Dick &Bruson,ii LCti Arcatlia?Davelo nerll Co . .Ho an-lii1 at filth ,LL ' k. JIM MAESTRI 408-846-0244 FINAL ENGINEERING COST ESTIMATE ? Y°< PLAN CHECK ? `N INCENTIVE AGREEMENT FEES ONLY ? N TO PERMIT? (Y TO FINAL? N. TO PERMIT ? ;Y''' TO FINAL ? NOTE: This Preliminary Cost Schedule is an estimate and will be adjusted to the rates In effect at the time permits are issued. Site Information: Residential -Low ? Residential -High ? Commercial -Low ? Commercial -High ? Industrial -General ? Industrial -Warehouse ? Assembly Hall? Common Area? CommerciaUindustrial Allocations: Reimbursements and credits: Country Estates Water System? Gross Acres: Lots: Sewer GPD: Units: Water GPD: NSoutheast Quadrant Hydrology Study? =N, Obata Industrial Park Credit? Front Footage/Square Footage Charges and Construction Water. Street Tree FF: Water FF: SPECIAL PUBLIC WORKS SERVICES Maps: Final Map Pavement SF: $2,355.00 + Median SF: Sewer FF: Storm FF: Sidewalk SF: Curb/Gutter FF: 100-2601-0000-3625 $15.00 / lot Parcel Map $2,560.00 + $15.00 / lot Re -assessment Map (Assessment District Parcels) $285.00 + $30.00 / lot Administration Fees: Southeast Quadrant Hydrology Study (Not Included) Sq Ft: Const Water Acres to be Developed: . 24.500 Construction Water FF: ..12.958.q'. $3,975.00 Fee ID NO-FINALM $0.00 Fee ID NO-PARCELM $0.00 Fee ID N-ASSESM $0.00 Fee ID N-SD-QUADA Scanning Fee (For Improvement Plans, multiply # of sheets by 2 - scanning to be done at the beginning and end of the project) 50 # of Sheets for Map and $9.00 / sheet Y $450.00 Fee ID NO -SCAN Improvement Plans COST SCHEDULE (2) $6,210.60 Fees Last Revised July 2, 2007 G:\COMDEV\ENGINEERING\FEES\Project Cost Schedules\TRACT 9966 DEER Miscellaneous Engineering Services: (Cost Schedules, Agreements, R/W Reviews and Other Misc. Services) 10hr Misc Services $178.56 / hr. $1,785.60 Fee ID N-MISC 9/14/2010 1:44 PM ENGRING PLAN CHECK & INSPECTION 100-2601-0000.3605 COST ESTIMATE $330,118.64 (Based on total cost of public right-of-way improvements) FINAL ENGINEERING PLAN CHECK $0.00 0, hr Site grading and $178.56 / hr. "Y$0.00 Fee ID NO-GRADINS reinspection charges COST FINAL ENGINEERING Estimated Cost of Public Improvements 12% $0 to $100,000 10% $100,000 to $200,000 8% over $200.000 Payment Bond Amount for Offsite Improvements Performance Bond Amount for Offsite Improvements $12,000.00 $10.000.00 r $0.00 $308,118 64 iY $0.00 $4,051,483 $4,051,483 IMPACT FEES Storm Drain Impact Fee 420-2600-0000-3860 a.Residential-Low $688.00 / acre Y' $16,856.00 Fee ID NO-SD-LD b.Residential-High $1,080.00 / acre Y- $0.00 Fee ID NO -SD -HD c.Commercial $1,864.00 / acre Yf $0.00 Fee ID NO-SD-C d.Industrial $1,375.00 / acre Y $0.00 Fee ID NO-SD-1 e.Assembly Hall $688.00 / acre mY $0.00 Fee ID NO-SD-AH Obata Industrial Park Credits (Based on reimbursements due from oversized storm facilities) Obata Fee Credit S1,170.00 / acre Yi' $0.00 Fee ID N-SD-OBATA Street Tree Fee a.City Planting and Replacement b.Inspection and Replacement Traffic Impact Fee a.Residentlal-Low b.Residential-High c.Commercial-Low Traffic (< 10.75 trips/1000 sf) d.Commercial-High Traffic (>= 10.75 trips/1000 sf) e.Industrial-General f.Industrial-Warehouse COST SCHEDULE Fees Last Revised July 2, 2007 $3.06 / f.f. x $0.41 / f.f. x $16,856.00 432-2600-0000-3660 $984.00 0.0 = $0.00 Fee ID NO-TREEPLT 2,400.0 = $984.00 Fee ID NO-TREEINS 433-2600-0000-3660 DEFERED TO BUILDING PERMIT $11,809.00 / unit Y; $1,275,372.00 Fee ID N1-TRAF-LD $9,572.00 / unit r $0.00 Fee ID N2-TRAF-HD $13,065.00 / k.s.f. Y.tll, $0.00 Fee ID N3-TRAF-CL $26,390.00 / k.s.f. Y', $0.00 Fee ID N3-TRAF-CH $5.178.00 / k.s.f. Y,, $0.00 Fee ID N4-TRAF-IG $3,753.00 / k.s.f. $0.00 Fee ID N4-TRAF-IW (3) G:\COMDEV\ENGINEERING\FEES\Project Cost Schedules\TRACT 9966 DEER Sewer Impact Fee a.Residential-Low b.Residential-High c.CommerciaUlndustrial Obata Industrial Park Credits Obata Fee Credit Water Impact Fee a.Residential-Low b.Residential-High c.Commercial/Industrial Obata Industrial Park Credits Obata Fee Credit Public Facilities impact Fee a.Residentiai-Low b.Residential-High c.Commercial d.Industrial Water User Fee (Construction) FRONT FOOT CHARGES Water Water Mains, including fire hydrants, valves and box: (Developer is responsible for up to and including 12' mains) Half Pipe 6 inch Main $45.00 / LF x 8 inch Main 10 Inch Main 12 Inch Main 14 inch Main 16 inch Main 18 Inch Main 24 inch Main 30 inch Main 36 inch Main Country Estates Water System COST SCHEDULE Fees Last Revised July 2, 2007 $47.00 / LF x $54.00 / LF x $59.00 / LF x $65.00 / LF x $71.00 / LF x $78.00 / LF x $95.00 / LF x $105.00 / LF x $122.00 / LF x (Not Included) 435-2600-0000-3660 $12,531.00 / unit Y= $1,353,348.00 9/14/2010 1:44 PM DEFERED TO Fee ID N1-SS-LD $6,781.00 / unit Y; $0.00 Fee ID N2-SS-HD $3,966.00 / cgpd 50.00 Fee ID N5-SS-C/I (Based on reimbursements due from oversized sewer facilities) $531.00 / acre $0.00 Fee ID N-SS-OBATA 436-2600-0000-3660 $5,236.00 / unit $2,118.00 / unit $8,208.00 / kgpd DEFERED TO 5565,488.00 Fee ID N1-WATR-LD $0.00 Fee ID N2-WATR-HD $0.00 Fee ID N5-WTR-C/I (Based on reimbursements due from oversized water facilities) $154.00 / acre Y $0.00 Fee ID N-WR-OBATA 440-2600-0000-3660 $21,586.00 / unit $18,286.00 / unit $3,139.00 / k.s.f. $1,394.00 / k.s.f. 720-0433-0000-3620 $2.90 / f.f. plus $176.55 / a.c. BUILDING PERMIT BUILDING PERMIT DEFERED TO BUILDING PERMIT $2,331,288.00 Fee ID N1-PF-LD $0.00 Fee ID N2-PF-HD $0.00 Fee ID N3-PF-C $0.00 Fee ID N4-PF-I (Used to charge and reimburse fees for existing Infrastructure) 801-2601-PWDO-3899 J.ineal Footaae 0.0 = 0 0.0 = t= (4) $41,903.68 $37,578.20 Fee ID NO-CONWTFF $4,325.48 Fee ID NO-CONWTAC $0.00 Fee ID N-WR06-1/2 $0.00 Fee ID N-WR08-1/2 $0.00 Fee ID N-WR10-1/2 $0.00 Fee ID N-WR12-1/2 $0.00 Fee ID N-WR14-1/2 $0.00 Fee ID N-WR16-112 $0.00 Fee ID N-WR18-1/2 $0.00 Fee ID N-WR24-1/2 $0.00 Fee ID N-WR30-1/2 $0.00 Fee ID N-WR36-1/2 $0.00 Fee ID N-WR-RESCE $0.00 G:\COMDEV\ENGINEERING\FEES\ProJect Cost Schedules\TRACT 9966 DEER NOTE: All deferred and/or estimated fees will be adjusted to the rates in effect at the time Building Permits are issued. The undersigned agrees to provide actual construction costs for recalculation of fees and pay any underestimated fees prior to final acceptance. If the recalculated fees are less than the estimate, the City of Gilroy will refund the difference. Site grading and reinspection charges including reinspection of backyard drainage will be billed at the Engineering Division hourly rate in effect at the time of inspection. John M,. ilice, Trustee of The John M. Filice Family Trust dated November 08, 1970 By: Name: Jv4UUi Ila�� Title: 1;;(4 >'--e Date: % 14 Lewis, Dick, & Brunson, LLC, a California limited liability comp By: Name: V Rt `D DL& 4 Title: A [ 2-E O N? t Date: 9-1 -zo10 Arcadia Developmen Co., a California corporation By: Name: ?%1Z(D D(4R&-A Title: \j \.%e r''�,e5 i N./-- Date: " 2--0 1 Glen Loma Corporation, a California corporation By"- / l�C('j Name: I✓ /4 F, ! c P Title: "2/7 -e-S Date: /f'— /3 /p K. Hovnanian at Gilroy, LLC, a a California limited liability company Name: Rl G% A O . BRLG•s ailb Title: lig /L#JJ7W Rein//i!j Date: !• /51 %0 ACOR CERTIFICATE OF LIABILITY INSURANCE ATE (MANDD/YYYY) D10/29/2010 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies mayrequlre an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Marsh USA Inc. TWO LOGAN SQUARE PHILADELPHIA, PA 19103-2797 Attn: philadelphia.certs@marsh.com or 212-948-0360 181805-GAW-10-11 N. CA NCA Land D N/A CONTACT NAME: PHONE FAX (A/C. No. Ext): (A/C. No): E-MAIL aDDREss: PRODUCER CUSTOMER ID #: INSURER(S) AFFORDING COVERAGE NAIL# INSURED K. HOVNANIAN HOMES NORTHERN CALIFORNIA, INC. 1375 EXPOSITION BLVD. #300 SACRAMENTO, CA 95815 INSURER A Ironshore Specialty Insurance Company 25445 INSURER 8 : N/A N/A INSURER C : Commerce And Industry. Ins Co 19410 INSURER D : National Union Fire Insurance Co. 19445 INSURER E : N/A N/A INSURER F : COVERAGES CERTIFICATE NUMBER: CLE-002745737-05 REVISION NUMBER: 2 THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY .BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS INSR TYPE OF INSURANCE ADDL INSR SUBR WVD POLICY NUMBER POLICY EFF (MIWDD/YYYY) POUCY EXP (MM/DD/YYYY) LIMITS A GENERAL uABIL1TY COMMERCIAL GENERAL LIABILITY OCCUR - 000787101 10/31/2010 10/31/2011 EACH OCCURRENCE $ 5,000,000 X DAMAGE TO RENTED PREMISES (Ea occurrence) $ 1,000,000 CLAIMS -MADE X MED EXP (Any one person) $ N A X SIR'$100,000 PERSONAL & ADV'INJURY $ 5,000,000 X SIR'$3,000,000 COMP OPS GENERAL AGGREGATE $ 5,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $ 5,000,000 7-POLICY_n_JE n LOG $ D AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS CA8263425 10/31/2010 10/31/2011 COMBINED SINGLE LIMIT (Ea accident) $ 2,000,000 X BODILY INJURY (Per person) $ BODILY 'INJURY (Per accident) $ PROPERTY DAMAGE (Per accident) , $ $ $ UMBRELLA LIAB EXCESS UAB OCCUR CLAIMS -MADE EACH OCCURRENCE $ AGGREGATE $ DEDUCTIBLE RETENTION $ $ $ C D WORKERS COMPENSATION AND EMPLOYERS LIABILITY 'ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? (Mandatory in NH) 1f yes, describe under DESCRIPTION OF OPERATIONS Y / N N / A WC6988031 (AOS) WC20635014 (CA) 10/31/2010 10/31/2010 10/31/2011 10/31/2011 X WC STATU- OTH- TORY I IMITS' ER E.L. EACH ACCIDENT $ 2,000,000 N E.L. DISEASE - EA EMPLOYEE $ 2,000,000 below E.L. DISEASE - POLICY LIMIT $ 2,000,000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (Attach ACORD 101, Additional Remarks Schedule, If more space is required) RE: PROJECT "DEER PARK, PH III, TRACT #9966, APN#783020-055 & 056, GILROY, CA CITY OF GILROY IS INCLUDED AS ADDITIONAL INSURED, (EXCEPT FOR WORKERS' COMPENSATION) WHERE REQUIRED BY WRITTEN CONTRACT, PROVIDED SUCH CONTRACT WAS EXECUTED PRIOR TO THE DATE OF LOSS. CERTIFICATE HOLDER CANCELLATION CITY OF GILROY ATTN: 'DANIEL HUGHES 7351 ROSANNA STREET GILROY, CA 95020 SHOULD ANY OF THE ABOVE DESCRIBED POUCIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POUCY PROVISIONS. AUTHORIZED REPRESENTATIVE of Marsh USA Inc. /lam - _ + _sr_ Donna Clampitt ACORD 25'(2009/09) @ 1988-2009 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD '/„.„' EVIDENCE OF COMMERCIAL PROPERTY INSURANCE `/ DATE (MWDD/YYYY) 06/03/2011 THIS EVIDENCE OF PROPERTY INSURANCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE ADDITIONAL INTEREST NAMED BELOW. THIS EVIDENCE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND, OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS EVIDENCE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE.ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE ADDITIONAL INTEREST. PRODUCER NAME, IIPHONE CONTACT PERSON AND ADDRESS* (A/C. No. Extl: 87 7 .- 9 4 5- 7 3 7 8 COMPANY NAME AND ADDRESS Westchester Surplus Lines Insurance Suite 2500 P.O. Box 740276 Atlanta, GA 30374 IF MULTIPLE COMPANIES, COMPLETE SEPARATE NAIC NO: 1017.2 - 001 Willis of New York, Inc. 26 Century Blvd. P. O. Box 305191 Nashville, TN 37230-5191 Company FORM FOR EACH FAX (NC, No): 888-467-2.378 EMA ADDR SS: CGS tificates@wi11is.;com CODE: SUB CODE: POLICY TYPE Commercial Property AGENCY CUSTOMER ID *: NAMED INSURED AND ADDRESS X. Hovnanian Homes of Northern California, Inc. LOAN NUMBER POLICY NUMBER D35935423006 Hovnanian Enterprises, Inc. 110 West Front Street Red Bank, NJ 07701 EFFECTIVE DATE 06/01/2011 EXPIRATION DATE 06/01/2012 CONTINUED UNTIL IF CHECKED TERMINATED, ADDITIONAL NAMED INSURED(S) THIS REPLACES PRIOR EVIDENCE DATED: PROPERTY INFORMATION (Use REMARKS on page 2, ifmore space_is required) BUILDING OR _i BUSINESS PERSONAL PROPERTY LOCATION/DESCRIPTION Community Name: Deer Park, Ph. III, Tract #9966, Gilroy, CA Replacement Value: $4,051,483.00 THE POUCIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR -CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS EVIDENCE OF PROPERTY INSURANCE MAY BE ISSUED OR MAY PERTAIN, THE `INSURANCE -AFFORDED BY- THE ;POUCIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POUCIES. UMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. BROAD I 'x I SPECIAL x All Risk Manuscript Form COMMERCIAL PROPERTY COVERAGE AMOUNT OF INSURANCE: - $ _ _$20, 000, 000 _ DED: Per Policy Form_ _ YES NO WA In BUSINESS INCOME fl RENTAL VALUE x If YES, LIMIT: $2, 000, 000 x Actual Loss Sustained; # of months: BLANKET COVERAGE x If YES, indicate value(s) reported on property identified above: $Per Policy Form TERRORISM COVERAGE x Attach Disclosure Notice / DEC IS THERE A TERRORISM -SPECIFIC EXCLUSION? x IS DOMESTIC TERRORISM EXCLUDED? x LIMITED FUNGUS COVERAGE g If YES, LIMIT: $5, 000, 000 Ann Agg DED: Per Policy Form FUNGUS EXCLUSION (If "YES", specify organization's form used) x Manuscript Form REPLACEMENT COST x AGREED VALUE x COINSURANCE x If YES, % EQUIPMENT BREAKDOWN ,,(If Applicable) x If YES, LIMIT: $20,000,000 DED: Per Policy Form ORDINANCE.OR LAW -Coverage for loss to undamaged portion of bldg x - Demolition Costs x If YES, LIMIT: Included DED: Per Policy Form - Incr. Cost of Construction x If YES, LIMIT: Included DED: Per Policy Form EARTH MOVEMENT (If Applicable) x If YES, LIMIT: $20,000,000 Ann Agg DEC: Per Policy Form FLOOD (If Applicable) x If YES, LIMIT: $20,000,000 Ann Agg DED: Per Policy Form WIND / HAIL (If _Subjectto Different Provisions) s If YES, LIMIT: $20,000,000 Ann, Agg DED: Per Policy Form PERMISSION TO WAIVE SUBROGATION IN FAVOR OF MORTGAGE HOLDER PRIOR TO LOSS X CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE E DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. ADDITIONAL INTEREST MORTGAGEE LENDERS LOSS PAYABLE CONTRACT OF SALE Loss Payee I LENDER SERVICING AGENT NAME AND ADDRESS X NAME AND ADDRESS City of Gilroy Attn: Daniel Hughes 7351 Rosanna Street Gilroy, CA 95020 AUTHORIZED ACORD 28 (2009/12) co11:3378840 Tp1:1277465 Cert:16042253 Page 1 -of 2 ©'2003-2009 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD EVIDENCE OF COMMERCIAL PROPERTY INSURANCE REMARKS - Including Special Conditions (Use only if more space is required ) Remarks All Risks of direct physical loss to Real and Personal Property including Builders Risk, Time Element including Business Interruption, Extra Expense and Rental Income/Value as defined in the policy terms and conditions. Earthquake sublimit is $20,000,000 per occurrence and annual aggregate. 5% Property Damage and 5% Time Element deductibles subject to a minimum of $250,000 apply to locations in California. Flood sublimit is $20,000,000 per occurrence and annual aggregate. 3% Property Damage and 3% Time Element deductibles subject to a minimum of $1,000,000 apply to locations in Zones A or V. City of Gilroy is named as Loss Payee as respects Property policy. ACORD 28 (2009/12) Co11:3378840 Tp1:1277465 Cert:16042253 Page 2 of 2 AWRLI EVIDENCE OF COMMERCIAL PROPERTY INSURANCE -- DATE 06/01/2012' THIS EVIDENCE OF PROPERTY INSURANCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE ADDITIONAL INTEREST NAMED BELOW. THIS EVIDENCE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND, OR ALTER THE COVERAGE AFFORDED BY THE POUCIES BELOW. THIS EVIDENCE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE ADDITIONAL INTEREST. PRODUCER NAME, IIPHONE imams.CONTACT PERSON 'AND imams.(A/C. No. Ern: 8 7 7- 9 4 5- 7 3 7 8 COMPANY NAME AND ADDRESS Westchester Surplus Lines Insurance Suite 2500 P.O. Box 740276 Atlanta, GA 30374 IF MULTIPLE COMPANIES, COMPLETE SEPARATE NAIL NO: 10172 -001 Willis of New York, Inc. 26 Century Blvd. P. O. Box 305191 Nashville, TN 37230-5191 Company FORM FOR EACH AIL (NC. No): 888-467-2378' n DR : certificateslpwillis.com CODE: SUB CODE: POLICY TYPE Commercial Property AGENCY CUSTOMER ID #: _- NAMED INSURED AND ADDRESS R. Hovnanian Homes of Northern California, Inc. Hovnanian Enterprises, Inc. 110 West Front Street Red Bank, NJ 07701 LOAN NUMBER POLICY NUMBER D35935423007 EFFECTIVE DATE 06/01/2012 EXPIRATION DATE 06/01/2013 CONTINUED UNTIL IF CHECKED TERMINATED ADDmONAL NAMED INSURED(S) THIS REPLACES PRIOR EVIDENCE DATED: PROPERTY INFORMATION (Use REMARKS on page 2, if more space is required) [Z1 BUILDING OR ® BUSINESS PERSONAL PROPERTY LOCATIONIDESCRIPTION Community Name: Deer Park, Ph. III, Tract #9966, Gilroy, CA Replacement Value: $4,051,483.00 THE POUCIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS EVIDENCE OF PROPERTY INSURANCE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. COVERAGE INFORMATION RASIC X �CPECIAI COMMERCIAL PROPERTY COVERAGE AMOUNT OF INSURANCE: $ 20, 000, 000 DED: $25, 000 YES NO WA a ' BUSINESS INCOME x RENTAL VALUE x If YES, LIMIT:$2, 000,000 x Actual, Loss Sustained; # of.months:12. BLANKET COVERAGE x If YES, Indicate value(s) reported on property identified above: $Per Policy Form TERRORISM COVERAGE x Attach Disclosure Notice / DEC IS THERE ATERRORISM—SPECIFIC EXCLUSION? x IS DOMESTIC TERRORISM EXCLUDED? x LIMITED FUNGUS COVERAGE x If YES, LIMIT: $5, 000, 000 Ann Agg DED: Per Policy Form FUNGUS EXCLUSION (If `YES"-, specify organization's form used) X Manuscript Form _ REPLACEMENT COST x AGREED VALUE x COINSURANCE x If YES, EQUIPMENT BREAKDOWN (If Applicable) x If YES, LIMIT: $20,000,000 DED: Per Policy Form. ORDINANCE OR LAW - Coverage for loss to undamaged portion of bldg x If YES, LIMIT: Included DED: Per Policy Form - Demolition Costs x If YES, LIMIT: included DED: Per Policy Form - Incr. Cost of Construction x If YES, LIMIT: Included DED: Per Policy Form EARTH MOVEMENT (If Applicable) x If YES, LIMIT: $20, 000, 000 Ann Agg DED: Per Policy Form FLOOD (If Applicable) x If YES, LIMIT: $20,000,000 Ann Agg DED: Per Policy Form _ WIND / HAIL (If Subject to Different Provisions) x If YES, LIMIT: included DED: Per Policy Form PERMISSION TO WAIVE SUBROGATION IN FAVOR OF MORTGAGE HOLDER PRIOR TO LOSS x CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POUCIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. ADDITIONAL INTEREST MORTGAGEE LENDERS LOSS PAYABLE, X CONTRACT OF SALE Loss Payee NAME AND ADDRESS City of Gilroy Attn: Daniel Hughes 7351 Rosanna Street Gilroy, CA 95020 LENDER SERVICING AGENT NAME AND ADDRESS A ....y ESENTATIVE ACORD 28 (2011/11) Co11:3749586 Tp1:1461519 Cert:17957299 Page 1 of 2, 0 2003-2011 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD EVIDENCE OF COMMERCIAL PROPERTY INSURANCE REMARKS- Including Special Conditions (Use only if more space is required ) Remarks All Risks of direct physical loss to Real and Personal Property including Builders Risk, Time Element including Business Interruption, Extra Expense and Rental Income/Value as defined in the policy terms and conditions. Earthquake sublimit is $20,000,000 per occurrence and annual aggregate. 5% Property Damage and 5% Time Element deductibles subject to a minimum of $250,000 apply to locations in California. Flood sublimit is $20,000,000 per occurrence and annual aggregate. 3% Property Damage and 3% Time Element deductibles subject to a minimum of $1,000,000 apply to locations in Zones A or V. City of Gilroy is named as Loss Payee as respects Property policy. ACORD 28 (2011/11) Co11:3749586 Tp1:1461519 Cert:17957299 Page 2 of 2 VERMAP2 'AC-. CAKE" EVIDENCE OF COMMERCIAL PROPERTY INSURANCE `� DATE DNYYV) 6 6/1 /1/2 /2016 THIS EVIDENCE OF COMMERCIAL PROPERTY INSURANCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE ADDITIONAL INTEREST NAMED BELOW. THIS EVIDENCE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS EVIDENCE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE ADDITIONAL INTEREST. PRODUCER NAME, i PHONE 877 945-7378 CONTACT PERSON AND ADDRESS , (A/C No Ext): ( ) COMPANY NAME AND ADDRESS Westchester Surplus Lines Insurance Company 436 Walnut Street Philadelphia, PA 19106 IF MULTIPLE COMPANIES, COMPLETE SEPARATE NAIL NO: 10172 Willis of New York, Inc. Go 26 Century Blvd P.O. Box 305191 Nashville, TN 37230-5191 Contact name: Willis Towers Watson Certificate Center FORM FOR EACH 888 467-2378 E-MAILDDcertificates@willis.com FAX (A/C, No):() CODE: SUB CODE: POLICY TYPE Builders Risk AGENCY HOVNENT-01 CUSTOMER ID #: NAMED INSURED AND ADDRESS K. Hovnanian Homes of Northern California, Inc. Hovnanian Enterprises, Inc. 110 West Front Street Red Bank, NJ 07701 LOAN NUMBER POLICY NUMBER D35935423011 EFFECTIVE DATE 6/1/2016 1 EXPIRATION DATE 6/1/2017 CONTINUED UNTIL IF CHECKED TERMINATED ADDITIONAL NAMED INSURED(S) THIS REPLACES PRIOR EVIDENCE DATED: PROPERTY INFORMATION (Use REMARKS on page 2, if more space is required) ® BUILDING OR X BUSINESS PERSONAL PROPERTY LocATION/DESCRIPTIONCommunit Name: Deer Park, Ph. III, Tract #9966, Gilroy, CA Completed Properties and Offices only THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS EVIDENCE OF PROPERTY INSURANCE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. COVERAGE INFORMATION PERILS INSURED BASIC BROAD SPECIAL X All Risk Manuscript Form COMMERCIAL PROPERTY COVERAGE AMOUNT OF INSURANCE: $ $20,000,000 DED: $25,000 YES NO WA ❑ BUSINESS INCOME X RENTAL VALUE X If YES, LIMIT: $2,000,000 X Actual Loss Sustained; # of months: 12 BLANKET COVERAGE X If YES, indicate value(s) reported on property identified above: $ Per Policy Form TERRORISM COVERAGE X Attach Disclosure Notice / DEC IS THERE A TERRORISM -SPECIFIC EXCLUSION? X IS DOMESTIC TERRORISM EXCLUDED? X LIMITED FUNGUS COVERAGE X If YES, LIMIT: $5,000,000 DED: Per Pol FUNGUS EXCLUSION (If "YES", specify organization's form used) X Manuscript Form REPLACEMENT COST X AGREED VALUE X COINSURANCE X If YES, % EQUIPMENT BREAKDOWN (If Applicable) X If YES, LIMIT: $20,000,000 DED: Per Pol ORDINANCE OR LAW - Coverage for loss to undamaged portion of bldg X If YES, LIMIT: Included DED: Per Pol - Demolition Costs X If YES, LIMIT: Included DED: Per POI - Incr. Cost of Construction X If YES, LIMIT: Included DED: Per POI EARTH MOVEMENT (If Applicable) X If YES, LIMIT: $20,000,000 DED: Per Pol FLOOD (If Applicable) X If YES, LIMIT: $20,000,000 DED: Per Pol WIND / HAIL INCL ® YES ❑ NO Subject to Different Provisions: X If YES, LIMIT: Included DED: Per POI NAMED STORM INCL ® YES ❑ NO Subject to Different Provisions: X If YES, LIMIT: Included DED: Remarks PERMISSION TO WAIVE SUBROGATION IN FAVOR OF MORTGAGE HOLDER PRIOR TO LOSS X CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. ADDITIONAL INTEREST MORTGAGEE LENDERS LOSS PAYABLE CONTRACT OF SALE Loss Payee NAME AND ADDRESS City of Gilroy Attn: Daniel Hughes 7351 Rosanna Street Gilroy, CA 95020 LENDER SERVICING AGENT NAME AND ADDRESS AUTHORIZED REPRESENTATIVE ACORD 28 (2014/01) Page 1 of 2 © 2003-2014 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD HOVNENT-01 VERMAP2 EVIDENCE OF COMMERCIAL PROPERTY INSURANCE REMARKS - Including Special Conditions (Use only if more space is required) Special Conditions: All Risks of direct physical loss to Real and Personal Property including Builders Risk, Time Element including Business Interruption, Extra Expense and Rental IncomeNalue as defined in the policy terms and conditions. CERTIFICATES OF INSURANCE: Any certificate of insurance or evidence of property insurance documents issued in connection with this Policy shall be issued solely as a matter of convenience or information for the addressee or hold of said certificate or evidence of insurance, except where any Additional Insured(s), Mortgagee(s) or Loss Payee(s) is named or any waiver of subrogation granted pursuant to the Special Provisions of the certificate of insurance or evidence of property insurance. In the event any Additional Insured(s), Mortgagee(s) or Loss Payee(s) are named, this policy shall be deemeed to have been endorsed accordingly, subject to all other terms, conditions and exclusions stated in this Policy. Earthquake sublimit is $20,000,000 per occurrence and annual aggregate. 5% Property Damage and 5% Time Element deductibles subject to a minimum of $250,000 apply to locations in California. Flood sublimit is $20,000,000 per occurrence and annual aggregate. 3% Property Damage and 3% Time Element deductibles subject to a minimum of $500,000 apply to locations in Zones A or V. *Named Storm in Tier 1 Locations as defined in the Agreed form. $ 5% of the 100% PD values at the time of Toss and in the separately, 5% of the 12 month 100% profit and continuing expenses subject to a minimum deductible of $250,000. Replacement Value: $4,051,483.00City of Gilroy is named as Loss Payee as respects Property policy. ACORD 28 (2014/01) Page 2 of 2 ACORN® EVIDENCE OF COMMERCIAL PROPERTY INSURANCE �� TE DATE(MMi/i2018 1 THIS EVIDENCE OF COMMERCIAL PROPERTY INSURANCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE ADDITIONAL INTEREST NAMED BELOW. THIS EVIDENCE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS EVIDENCE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE ADDITIONAL. INTEREST. PRODUCER NAME, PHONE 1-877-945-7378 CONTACT PERSON AND ADDRESS (A/C. No. Ext): COMPANY NAME AND ADDRESS Westchester Surplus Lines Insurance 436 Walnut Street Philadelphia, PA 19106 IF MULTIPLE COMPANIES, COMPLETE SEPARATE 'NAM NO: 10172 Willis of New York, Inc. c/o 26 Century Blvd P.O. Box 305191 Nashville, TN 372305191 USA Company FORM FOR EACH FAX No): 1-888-467-2.378 E-MAILDDSS: certificates@willis.com CODE: SUB CODE: POLICY TYPE Builders Risk AGENCY CUSTOMER ID #: ' NAMED INSURED AND ADDRESS R. Hovnanian Homes of Northern California, Inc. Hovnanian Enterprises, Inc. 90 Matawan Road, 5th floor Matawan, NJ 07747 LOAN NUMBER POLICY NUMBER D35935423 013 EFFECTIVE DATE 06/01/2018 EXPIRATION DATE 06/01/2019 CONTINUED UNTIL IF CHECKED TERMINATED ADDITIONAL NAMED INSURED(S) THIS REPLACES PRIOR EVIDENCE DATED: PROPERTY INFORMATION (ACORD 101 may be attached if more space is required) E BUILDING OR 0 BUSINESS PERSONAL PROPERTY LOCATION / DESCRIPTION Community Name: Deer Park, Ph. III, Tract #9966, Gilroy, CA THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH ''RESPECT TO WHICH THIS EVIDENCE OF' PROPERTY INSURANCE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,' EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. COVERAGE INFORMATION PERILS INSURED I BASIC BROAD X II SPECIAL All Risk Manuscript Form COMMERCIAL PROPERTY COVERAGE AMOUNT OF INSURANCE: $ $20, 000, 000 DED: $50, 000 YES NO N/A ❑ BUSINESS INCOME ❑ RENTAL VALUE X If YES, LIMIT: X Actual Loss Sustained.; # of months: 12 BLANKET COVERAGE X If YES, indicate value(s) reported on property identified above: $ Per Policy Form TERRORISM COVERAGE X Attach Disclosure Notice / DEC IS THERE A TERRORISM -SPECIFIC EXCLUSION? X IS DOMESTIC TERRORISM EXCLUDED? X LIMITED FUNGUS COVERAGE X If YES, LIMIT: $5, 000, 000 DED: Per Pol FUNGUS EXCLUSION (If "YES', specify organization's form used) X Manuscript Form REPLACEMENT COST X AGREED VALUE X ' COINSURANCE X If YES, % EQUIPMENT BREAKDOWN (If Applicable) X 1 1 If YES, LIMIT: $20, 000, 000 DED: Per Pol ORDINANCE OR LAW - Coverage for loss to undamaged portion of bldg X If YES, LIMIT: Included DED: Per Pol - Demolition Costs X If YES. LIMIT: Included 'DED: Per Pol - Incr. Cost of Construction 1 X If YES, LIMIT: Included DED: Per Pol ' EARTH' MOVEMENT (If Applicable) X If YES, LIMIT: $20, 000, 000 DED: Per Pol FLOOD (If Applicable) X If YES, LIMIT: $20, 000, 000 DED: Per Pol WIND / HAIL INCL 0 YES ❑ NO Subject to Different Provisions: X If YES, LIMIT: Included DED: Per Pol NAMED STORM INCL x❑ YES ❑ NO Subject to Different Provisions: X If YES, LIMIT: Included DED: Remarks PERMISSION TO WAIVE SUBROGATION IN FAVOR OF MORTGAGE HOLDER PRIOR TO LOSS X CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. ADDITIONAL INTEREST CONTRACT OF SALE MORTGAGEE LENDER'S LOSS PAYABLE 1 X 1 LOSS PAYEE LENDER SERVICING AGENT NAME AND ADDRESS NAME AND ADDRESS City of Gilroy Attn: Daniel Hughes 7351 Rosanna Street Gilroy, CA 95020 AUTHORIZED REPRESENTATIVE // /,4 ACORD 28 (2016/03) © 2003-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD SR ID: 16253367 BATCH: 732538 cERT: W6356641 AGENCY CUSTOMER ID: LOC #: ACO ADDITIONAL REMARKS SCHEDULE Page 2 of 2 AGENCY Willis of New York, Inc. POLICY NUMBER See Page 1 CARRIER See Page 1 NAIC CODE See Page 1 NAMED INSURED K. Hovnanian Homes of Northern California, Inc. Hovnanian Enterprises, Inc. 90 Matawan Road, 5th floor Matawan, NJ 07747 EFFECTIVE DATE: See Page 1 ADDITIONAL REMARKS THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER• 28 FORM TITLE: Evidence of Commercial Property Coverage : Builders Risk and Real & Personal Property All Risks of direct physical loss to Real and Personal Property and Builders Risk, including Soft Costs and Extra Expense as defined in the policy terms and conditions. CERTIFICATES OF INSURANCE: Any certificate of insurance or evidence of property nsurance documents issued in connection with this Policy shall be issued solely as a matter of convenience or information for the addressee or hold of said certificate or evidence of insurance, except where any Additional Insured(s), Mortgagee(s) or Loss Payee(s) is named or any waiver of subrogation granted pursuant to the Special Provisions of the certificate of insurance or evidence of property insurance. In the event any Additional Insured(s), Mortgagee(s) or Loss Payee(s) are named, this policy shall be deemeed to have been endorsed accordingly, subject to all other terms, conditions and exclusions stated in this Policy. Earthquake sublimit is $20,000,000 per occurrence and annual aggregate. Subject to a deductible of $250,000 for locations in California. Flood sublimit is $20,000,000 per occurrence and annual aggregate. Loss in any one occurrence caused by or resulting from Flood is subject to a $500,000 Deductible at locations in Flood zone A or V. Named Storm : Loss in any one occurrence caused by or resulting from Named Storm is subject to a $250,000 Deductible as respects Tier 1 Windstorm Locations Hail Deductible $100,000 per Occurrence . Reported Purchase Price: $4,051,483.00, Valuation is replacement cost. City of Gilroy is named as Loss Payee as respects Property policy. ACORD 101 (2008/01) © 2008 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD SR ID: 16253367 BATCH: 7325389CERT: W6356641